Lockheed Martin Corporation Consolidated Statements of Cash Flows Year ended December 31, (In millions) 2011 2010 2009 Operating Activities Net earnings $ 2,655 $ 2,878 $ 2,973 Adjustments to reconcile net earnings to net cash provided by operating activities: Depreciation and amortization 1,008 1,052 1,014 Stock-based compensation 157 168 154 Deferred income taxes (2) 452 567 Severance and other charges 136 220 — Reduction in tax expense from resolution of certain tax matters (89) (10) (69) Tax expense related to Medicare Part D reimbursement — 96 — Net adjustments related to discontinued operations (16) (257) — Changes in assets and liabilities: Receivables, net (363) 3 (685) Inventories, net (74) (207) (237) Accounts payable 609 (364) (21) Customer advances and amounts in excess of costs incurred 502 706 496 Postretirement benefit plans (393) (1,027) (394) Income taxes 304 70 (272) Other, net (181) 21 (39) Net cash provided by operating activities 4,253 3,801 3,487 Investing Activities Expenditures for property, plant and equipment (814) (820) (852) Expenditures for capitalized internal-use software (173) (254) (314) Net cash provided by (used for) short-term investment transactions 510 (171) (279) Net proceeds from sale of EIG — 798 — Acquisitions of businesses / investments in affiliates (649) (148) (435) Other, net 313 22 48 Net cash used for investing activities (813) (573) (1,832) Financing Activities Repurchases of common stock (2,465) (2,420) (1,851) Common stock dividends (1,095) (969) (908) Issuance of long-term debt, net of related costs 1,980 — 1,464 Repayments of long-term debt (632) — (242) Other, net 93 31 105 Net cash used for financing activities (2,119) (3,358) (1,432) Net increase (decrease) in cash and cash equivalents 1,321 (130) 223 Cash and cash equivalents at beginning of year 2,261 2,391 2,168 Cash and cash equivalents at end of year $ 3,582 $ 2,261 $ 2,391 See accompanying Notes to Consolidated Financial Statements. 53