As reflected in this report, financial results were  consistently strong in 2011 with sales of $46.5  billion, representing a two percent increase over  2010. We grew our diluted earnings per share  from continuing operations to $7.85, and we  grew our backlog to a record $80.7 billion at the  end of 2011.  Balanced cash deployment is a key element of  our strategy. In 2011, we generated $4.3 billion  in cash from operations after making $2.3  billion in contributions to our pension plans.  We deployed cash to generate shareholder  value through cash dividends of $1.1 billion  and share repurchases of $2.4 billion. Our total  shareholder return for the year was 21 percent,  outperforming all major indices. Because we operate in a dynamic environment,  we continuously evolve our organizational  structure to respond with even greater agility  and precision to changing business conditions  and customer priorities. To that end, in  September 2011 we created the Executive  Office of the Chairman to include the Chief  Executive Officer and Chief Operating Offi cer. Through this structure, we stay closely aligned  on all operational and functional matters as they  arise, and we act interchangeably and decisively  to ensure we meet our customers’ expectations,  and that we focus on excellent performance and  profitable growth. We are confident this new  structure better aligns business strategy with  program execution and affordability.  Additionally, we announced this year the  appointment of Larry A. Lawson as executive  vice president for Aeronautics, effective  April 1. Larry, who currently serves as vice  president and general manager of the F-35  program, brings a keen understanding of the  entire Aeronautics portfolio. He succeeds  Ralph D. Heath, whose leadership of our  Aeronautics business has been defi ned by  innovation, attention to performance, and a  dedication to the highest standards of ethics and  accountability. We realize that affordability – creating greater  efficiencies and lowering costs in everything  we do – is a permanent feature of our corporate  culture. We monitor all aspects of our operations  to ensure we are always aligned with business  needs and positioned to offer value to our  customers. We also work closely with our  29,000 active suppliers to drive affordability  into every program.  We also recognize that the greatest contributor  to the vitality of this company is solid execution  on our customers’ programs. We have made  considerable progress on the development and  production phases of the F-35 as evidenced by  Secretary of Defense Leon Panetta’s lifting of the  probation on the F-35B Short-Takeoff/Vertical  Lockheed Martin Corporation Our record of strong cash generation has  allowed us to pursue selected acquisitions that  add greater depth to our portfolio. In 2011, we  completed our acquisition of QTC Holdings,  Inc., the largest provider of outsourced medical  evaluation services to the U.S. Government and  Department of Veterans Affairs. Our distinction  as the number one supplier of IT services to the  federal government, coupled with QTC’s case  management services and health care expertise,  now position us to help improve health care for  veterans, reservists, active duty, and civilian  government personnel. We also acquired  Netherlands-based Sim-Industries, B.V., which  develops and manufactures fl ight simulators  for a wide range of airline customers. These  acquisitions demonstrate our commitment to  expand into closely related markets that build on  our core capabilities and grow our customer base.  II Structuring and Managing the  Enterprise for Effi ciency Operational Excellence Drives  Financial Results