Lockheed Martin Corporation (NYSE: LMT; Bethesda, MD) describes itself as a global security and aerospace company principally

Question:

Lockheed Martin (NYSE: LMT; Bethesda, MD) describes itself as "a global security and aerospace company principally engaged in the research, design, development, manufacture, integration and sustainment of advanced technology systems, products and services," with its principal customers being agencies of the U.S. Government. On the next two pages are Lockheed Martin's Consolidated Statements of Earnings, Comprehensive Income, and Balance Sheets, along with the Long-Term Debt footnote, excerpted from the its 2014 10-K.
1. What is the principal or of Lockheed Martin's long-term debt at November 23, 2015?
2. How is the covenant ratio described differently from what we might compute as part of the ROE decomposition?
3. The footnote states that "In November 2015, [Lockheed Martin] repaid $150 million of long-term notes with a fixed interest rate of 1.85% due to their scheduled maturities. In 2018" At the time of repayment, did the net carrying value of these long-term notes reflect at a premium, a discount, or par value? Explain.
4. Has Lockheed Martin's improved or deteriorated in 2015 relative to 2014? Explain your response, and identify the primary cause for that change.
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