Lockheed Martin Corporation Consolidated Statements of Earnings Year ended December 31, (In millions, except per share data) 2011 2010 2009 Net Sales Products $ 36,925 $ 36,380 $ 35,689 Services 9,574 9,291 8,178 Total net sales 46,499 45,671 43,867 Cost of Sales Products (32,968) (32,539) (31,643) Services (8,514) (8,382) (7,406) Severance and other charges (136) (220) — Other unallocated corporate costs (1,177) (742) (671) Total cost of sales (42,795) (41,883) (39,720) Gross profit 3,704 3,788 4,147 Other income, net 276 261 220 Operating Profit 3,980 4,049 4,367 Interest expense (354) (345) (308) Other non-operating income, net 5 74 123 Earnings from continuing operations before income taxes 3,631 3,778 4,182 Income tax expense (964) (1,164) (1,215) Net earnings from continuing operations 2,667 2,614 2,967 Net earnings (loss) from discontinued operations (12) 264 6 Net Earnings $ 2,655 $ 2,878 $ 2,973 Earnings (Loss) Per Common Share Basic Continuing operations $ 7.94 $ 7.18 $ 7.71 Discontinued operations (.04) .72 .02 Basic earnings per common share $ 7.90 $ 7.90 $ 7.73 Diluted Continuing operations $ 7.85 $ 7.10 $ 7.63 Discontinued operations (.04) .71 .01 Diluted earnings per common share $ 7.81 $ 7.81 $ 7.64 See accompanying Notes to Consolidated Financial Statements. 51