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US Majors Report Progress Amid Pandemic By Julian Nettlefold
October 29, 2020 by Julian Nettlefold
28 Oct 20. Third Quarter Results from the US Majors reflected those of the Second Quarter with defense revenues holding up well in the fac e of the CIVID-19 outbreak with civil aviation sales continuing to suffer in the fae of the global air travel downturn which looks to continue well into 2021.
Boeing Reports Third-Quarter Results
Financial results continue to be significantly impacted by COVID-19 and the 737 MAX grounding
Proactively managing liquidity and transforming for the future
Revenue of $14.1bn, GAAP loss per share of ($0.79) and core (non-GAAP)* loss per share of ($1.39)
Operating cash flow of ($4.8)bn; cash and marketable securities of $27.1bn
Total backlog of $393bn, including more than 4,300 commercial airplanes
The Boeing Company [NYSE: BA] reported third-quarter revenue of $14.1 bn, GAAP loss per share of ($0.79) and core loss per share (non-GAAP)* of ($1.39), reflecting lower commercial deliveries and services volume primarily due to COVID-19. Boeing recorded operating cash flow of ($4.8)bn.
"The global pandemic continued to add pressure to our business this quarter, and we're aligning to this new reality by closely managing our liquidity and transforming our enterprise to be sharper, more resilient and more sustainable for the long term," said Boeing President and Chief Executive Officer Dave Calhoun. "Our diverse portfolio, including our government services, defense and space programs, continues to provide some stability for us as we adapt and rebuild for the other side of the pandemic. We remain focused on the health and safety of our employees and their communities. I'm proud of the dedication and commitment our teams have demonstrated as they continued to deliver for our customers in this challenging environment. Despite the near-term headwinds, we remain confident in our long term future and are focused on sustaining critical investments in our business and the meaningful actions we are taking to strengthen our safety culture, improve transparency and rebuild trust."
Following the lead of global regulators, Boeing made steady progress toward the safe return to service of the 737 MAX, including rigorous certification and validation flights conducted by the U.S. Federal Aviation Administration, Transport Canada and the European Union Aviation Safety Agency. The Joint Operational Evaluation Board, featuring civil aviation authorities from the United States, Canada, Brazil, and the European Union, also conducted its evaluations of updated crew training. The 737 MAX has now completed around 1,400 test and check flights and more than 3,000 flight hours as it progresses through the robust and comprehensive certification process.
To adapt to the market impacts of COVID-19 and position the company for the future, Boeing continued its business transformation across five key areas including its infrastructure footprint, overhead and organizational structure, portfolio and investment mix, supply chain health and operational excellence. As the company resizes its operations to align with market realities, Boeing expects to continue lowering overall staffing levels through natural attrition as well as voluntary and involuntary workforce reductions, and recorded additional severance costs in the third quarter.
Operating cash flow was ($4.8)bn in the quarter, reflecting lower commercial deliveries and services volume primarily due to COVID-19, as well as timing of receipts and expenditures.
Cash and investments in marketable securities decreased to $27.1 bn, compared to $32.4bn at the beginning of the quarter, primarily driven by operating cash outflows. Debt was $61.0 bn, down from $61.4bn at the beginning of the quarter due to the repayment of maturing debt.
Total company backlog at quarter-end was $393bn.
Commercial Airplanes
Commercial Airplanes third-quarter revenue decreased to $3.6bn, reflecting lower delivery volume primarily due to COVID-19 impacts as well as 787 quality issues and associated rework. Third-quarter operating margin decreased to (38.1) percent, primarily driven by lower delivery volume, as well as $590m of abnormal production costs related to the 737 program.
Commercial Airplanes added the final 777X flight test airplane to the test program and the GE9X engine received FAA certification. In October, the company decided it will consolidate 787 production in South Carolina in mid-2021, which did not have a significant financial impact on the program in the third quarter. Commercial Airplanes delivered 28 airplanes during the quarter, and backlog included over 4,300 airplanes valued at $313bn.
Defense, Space & Security
Defense, Space & Security third-quarter revenue decreased to $6.8bn, primarily due to derivative aircraft award timing, partially offset by higher fighter volume. Third-quarter operating margin decreased to 9.2 percent reflecting less favorable performance, including a $67 m KC-46A Tanker charge.
During the quarter, Defense, Space & Security received an award for eight F-15EX advanced fighter aircraft for the U.S. Air Force and a contract extension for the International Space Station for NASA, as well as contracts for nine additional MH-47G Block II Chinook helicopters for the U.S. Army Special Operations and four additional 702X satellites. Also in the quarter, the U.S. Air Force and Boeing team was awarded the Collier Trophy for aerospace excellence for the X-37B autonomous spaceplane. Significant milestones included inducting the 20th U.S. Navy F/A-18 into the Service Life Modification program as well as delivering the firstBell Boeing V-22 Osprey to Japan and the first MH-47G Block II Chinook to the U.S. Army Special Operations.
Backlog at Defense, Space & Security was $62bn, of which 30 percent represents orders from customers outside the U.S.
Global Services third-quarter revenue decreased to $3.7bn, driven by lower commercial services volume due to COVID-19, partially offset by higher government services volume. Third-quarter operating margin decreased to 7.3 percent primarily due to lower commercial services volume and additional severance costs.
During the quarter, Global Services signed an agreement with GECAS for 11 737-800 Boeing Converted Freighters, secured a six-year P-8A support contract for the Royal Australian Air Force, and was awarded F-15EX training and services support contracts by the U.S. Air Force. Global Services also delivered the first P-8A Operational Flight Trainer for the United Kingdom Royal Air Force.
Additional Financial Information
At quarter-end, Boeing Capital's net portfolio balance was $2.0 bn. The change in revenue and earnings from other unallocated items and eliminations was primarily due to the timing of cost allocations. Earnings from other unallocated items and eliminations was also impacted by lower enterprise research and development expense. Interest and debt expense increased due to higher debt balances. The third quarter effective tax rate reflects tax benefits related to the five year net operating loss carryback provision in the Coronavirus Aid, Relief, and Economic Security (CARES) Act as well as the impact of pre-tax losses.
General Dynamics Reports Third-Quarter 2020 Results
Net earnings of $834 m and diluted EPS of $2.90, up 33% sequentially
Operating margin up 240 basis points over second quarter
Cash from operating activities 134% of net earnings
28 Oct 20. General Dynamics (NYSE: GD) today reported third-quarter 2020 net earnings of $834 m on revenue of $9.4 bn. Diluted earnings per share (EPS) were $2.90. Revenue was up 1.8% over the previous quarter, while net earnings and diluted EPS grew 33%.
"As we manage through this challenging time, we remain focused on the basics of operating performance, especially cash conversion and the early and aggressive management of costs, as evidenced this quarter by our strong operating margin and return on sales," said Phebe N. Novakovic, chairman and chief executive officer. "Moreover, we continue to reduce debt and invest in the company for future growth."
Company-wide operating margin for the quarter was 11.5%, a 240 basis-point increase from the previous quarter, with a notable increase of 620 basis points in the Aerospace segment's margin. Return on sales was 8.8%, a 210 basis-point increase over the previous quarter.
Net cash provided by operating activities in the quarter totaled $1.1 bn, or 134% of net earnings. Free cash flow from operations, defined as net cash provided by operating activities less capital expenditures, was $903 m, a 108% conversion of net earnings.
Capital Deployment
In the third quarter, the company reduced its net debt by $388m to $11.9bn, a decrease of 3.2% from the previous quarter. Capital expenditures were $216m, or 2.3% of revenue.
General Dynamics' total backlog at the end of third-quarter 2020 was $81.5bn, up 21% from the year-ago quarter. Estimated potential contract value, representing management's estimate of value in unfunded indefinite delivery, indefinite quantity (IDIQ) contracts and unexercised options, was $50.4bn. Total estimated contract value, the sum of all backlog components, was $131.9bn at the end of the quarter.
Significant awards in the quarter included $870m to deliver 8×8 combat vehicles and provide maintenance and life cycle support to the Spanish Ministry of Defense; a contract with a maximum potential value of $760m from the U.S. Department of Defense (DoD) for enterprise information technology and cybersecurity services and solutions; a contract with a maximum potential value of $365m to provide command, control and communications capabilities for the DoD; an IDIQ contract with a maximum potential value of $250 m from the U.S. Army to produce Small Multipurpose Equipment Transport (SMET) vehicles; $240m from the U.S. Navy for ship maintenance and repair services; a contract with a maximum potential value of $240m from the U.S. Department of Health and Human Services Centers for Medicare and Medicaid Services for cloud services and software tools; $155m from the Navy for Advanced Nuclear Plant Studies (ANPS) in support of various submarine programs; $145m for several key Information Technology contracts to provide intelligence services to classified customers; and $140m for several key Mission Systems contracts for classified customers.
Lockheed Martin Reports Third Quarter 2020 Results
– Net sales of $16.5bn
– Net earnings from continuing operations of $1.8 bn, or $6.25 per share
– Generated cash from operations of $1.9bn
– Achieved record backlog of $150.4bn
– Increased quarterly dividend rate to $2.60 per share
– Updates 2020 financial outlook and provides 2021 financial trends
20 Oct 20. Lockheed Martin Corporation [NYSE: LMT] today reported third quarter 2020 net sales of $16.5bn, compared to $15.2bn in the third quarter of 2019. Net earnings from continuing operations in the third quarter of 2020 were $1.8 bn, or $6.25 per share, compared to $1.6 bn, or $5.66 per share, in the third quarter of 2019. Cash from operations in the third quarter of 2020 was $1.9bn, compared to cash from operations of $2.5bn in the third quarter of 2019.
"In the third quarter, our dedicated workforce and resilient supply chain continued to support our customers' vital national security missions, overcoming the challenges of the pandemic," said James Taiclet, Lockheed Martin president and CEO. "As a result, we delivered strong results across our key financial metrics and we expect to build on this success through the remainder of the year. Looking ahead to 2021, we remain focused on driving innovation and growing our assets and capabilities to further benefit our customers and shareholders."
2021 Financial Trends
The corporation expects its 2021 net sales to increase to greater than or equal to $67bn. Total business segment operating margin in 2021 is expected to be in the 10.9 percent to 11.1 percent range and cash from operations is expected to be greater than or equal to $8.1bn, net of $1.0bn of planned pension contributions. The preliminary outlook for 2021 assumes continued support and funding of our programs, including recovery of COVID-19 cost impacts, and a statutory tax rate of 21%. Additionally, the preliminary outlook for 2021 assumes that there will not be significant reductions in customer budgets, changes in funding priorities and that the U.S. Government will not continue to operate under a continuing resolution for an extended period in which new contract and program starts are restricted. Changes in circumstances may require the corporation to revise its assumptions, which could materially change its current estimate of 2021 net sales, operating margin and cash flows.
The corporation currently expects a total net FAS/CAS pension benefit of approximately $2.1bn in 2021. This estimate assumes a 2.50 percent discount rate (a 75 basis point decrease from the end of 2019), a 7.00 percent return on plan assets in 2020, and a 7.00 percent expected long-term rate of return on plan assets in future years, among other assumptions. A change of plus or minus 25 basis points to the assumed discount rate, with all other assumptions held constant, would result in an incremental increase or decrease of approximately $15m to the estimated net 2021 FAS/CAS pension benefit. A change of plus or minus 100 basis points to the return on plan assets in 2020 only, with all other assumptions held constant, would result in an incremental increase or decrease of approximately $15 m to the estimated net 2021 FAS/CAS pension benefit. The corporation expects to make contributions of approximately $1.0 bn to its qualified defined benefit pension plans in 2021 and anticipates recovering approximately $2.1bn of CAS pension cost. The corporation will complete the annual remeasurement of its postretirement benefit plans and update its estimated 2021 FAS/CAS pension adjustment on Dec. 31, 2020. The final assumptions and actual investment return for 2020 may differ materially from those discussed above.
The global outbreak of the coronavirus disease 2019 (COVID-19) was declared a pandemic by the World Health Organization and a national emergency by the U.S. Government in March 2020 and has negatively affected the U.S. and global economies, disrupted global supply chains, resulted in significant travel and transport restrictions, including mandated closures and orders to "shelter-in-place" and quarantine restrictions, and created significant disruption of the financial markets. Lockheed Martin has taken measures to protect the health and safety of its employees, work with its customers and suppliers to minimize disruptions and support its community in addressing the challenges posed by this ongoing global pandemic.
The pandemic has presented unprecedented business challenges, and the corporation has experienced impacts in each business area related to COVID-19, primarily in increased coronavirus-related costs, delays in supplier deliveries, impacts of travel restrictions, site access and quarantine requirements, and the impacts of remote work and adjusted work schedules. Despite these challenges, the corporation and the U.S. Government's pro-active efforts, especially with regard to the supply chain, helped to partially mitigate the disruptions caused by COVID-19 on the corporation's operations in the first nine months of 2020. In addition, favorable contract award timing, strong operational performance and lower travel and overhead expenditures due to COVID-19 restrictions partially offset the impacts of COVID-19 on the corporation's financial results in the first nine months of 2020. However, the ultimate impact of COVID-19 in future periods remains uncertain. The corporation's 2020 outlook and 2021 financial trends assumes, among other things, that its production facilities continue to operate and it does not experience significant work stoppages or closures, it is able to mitigate any supply chain disruptions and these do not worsen, and it is able to recover its costs under U.S. Government contracts and government funding priorities do not change. While these are the corporation's current assumptions, they could change and will depend on future pandemic related developments, including the duration of the pandemic and any potential subsequent waves of COVID-19 infection and government actions.
Cash Activities
The corporation's cash activities in the third quarter of 2020 included the following:
paying cash dividends of $672m, compared to $621m in the third quarter of 2019;
repurchasing 0.2m shares for $85m, which includes $26m paid for shares repurchased in the second quarter of 2020; compared to repurchasing 0.6 m shares for $210m in the third quarter of 2019; and
making capital expenditures of $408 m, compared to $308m in the third quarter of 2019.
As previously reported on Sept. 25, 2020, the corporation increased its quarterly dividend by $0.20 per share, to $2.60 per share, beginning with the dividend payment in the fourth quarter of 2020. The corporation also increased its share repurchase authority by $1.3bn with $3.0bn in total remaining authorization for future repurchases of common stock under the program as of Sept. 27, 2020.
The corporation operates in four business segments organized based on the nature of products and services offered: Aeronautics, Missiles and Fire Control (MFC), Rotary and Mission Systems (RMS) and Space.
Net sales and operating profit of the corporation's business segments exclude intersegment sales, cost of sales, and profit as these activities are eliminated in consolidation. Operating profit of the corporation's business segments includes the corporation's share of earnings or losses from equity method investees as the operating activities of the investees are closely aligned with the operations of its business segments.
Operating profit of the corporation's business segments also excludes the FAS/CAS operating adjustment described below, a portion of corporate costs not considered allowable or allocable to contracts with the U.S. Government under the applicable U.S. Government cost accounting standards (CAS) or federal acquisition regulations (FAR), and other items not considered part of management's evaluation of segment operating performance such as a portion of management and administration costs, legal fees and settlements, environmental costs, stock-based compensation expense, retiree benefits, significant severance actions, significant asset impairments, gains or losses from significant divestitures, and other miscellaneous corporate activities.
The corporation recovers CAS pension cost through the pricing of its products and services on U.S. Government contracts and, therefore, recognizes CAS pension cost in each of its business segments' net sales and cost of sales. The corporation's consolidated financial statements must present pension and other postretirement benefit plan expense calculated in accordance with U.S. generally accepted accounting principles (referred to as FAS expense). The operating portion of the net FAS/CAS pension adjustment represents the difference between the service cost component of FAS pension expense and total CAS pension cost. The non-service FAS pension expense components are included in other non-operating expense. The net FAS/CAS pension adjustment increases or decreases CAS pension cost to equal total FAS pension expense (both service and non-service).
Changes in net sales and operating profit generally are expressed in terms of volume. Changes in volume refer to increases or decreases in sales or operating profit resulting from varying production activity levels, deliveries or service levels on individual contracts. Volume changes in segment operating profit are typically based on the current profit booking rate for a particular contract. In addition, comparability of the corporation's segment sales, operating profit and operating margin may be impacted favorably or unfavorably by changes in profit booking rates on the corporation's contracts for which it recognizes revenue over time using the percentage-of-completion cost-to-cost method to measure progress towards completion. Increases in profit booking rates, typically referred to as risk retirements, usually relate to revisions in the estimated total costs to fulfill the performance obligations that reflect improved conditions on a particular contract. Conversely, conditions on a particular contract may deteriorate, resulting in an increase in the estimated total costs to fulfill the performance obligations and a reduction in the profit booking rate. Increases or decreases in profit booking rates are recognized in the current period and reflect the inception-to-date effect of such changes.
Segment operating profit and margin may also be impacted favorably or unfavorably by other items, which may or may not impact sales. Favorable items may include the positive resolution of contractual matters, insurance recoveries and gains on sales of assets. Unfavorable items may include the adverse resolution of contractual matters; restructuring charges, except for significant severance actions which are excluded from segment operating results; reserves for disputes; certain asset impairments; and losses on sales of certain assets.
The corporation's consolidated net adjustments not related to volume, including net profit booking rate adjustments, represented approximately 24 percent of total segment operating profit in the third quarter of 2020 as compared to 29 percent in the third quarter of 2019.
Aeronautics' net sales in the third quarter of 2020 increased $502m, or 8 percent, compared to the same period in 2019. The increase was primarily attributable to higher net sales of approximately $325m for the F-35 program due to increased volume on development, sustainment, and production contracts; and about $130m for higher volume on classified development contracts.
Aeronautics' operating profit in the third quarter of 2020 increased $40m, or 6 percent, compared to the same period in 2019. Operating profit increased approximately $65m for the F-35 program due to higher volume on production, development, and sustainment contracts and higher risk retirements on production contracts. This increase was partially offset by a decrease of approximately $20m for the F-16 program due to lower risk retirements on sustainment contracts. Adjustments not related to volume, including net profit booking rate adjustments, in the third quarter of 2020 were comparable to the same period in 2019.
Missiles and Fire Control
MFC's net sales in the third quarter of 2020 increased $370m, or 14 percent, compared to the same period in 2019. The increase was primarily attributable to higher net sales of approximately $250m for tactical and strike missile programs due to increased volume (primarily Guided Multiple Launch Rocket Systems (GMLRS) and High-Mobility Artillery Rocket Systems (HIMARS)); and about $200m for integrated air and missile defense programs due to increased volume (primarily Patriot Advanced Capability-3 (PAC-3) and Terminal High Altitude Area Defense (THAAD)). These increases were partially offset by lower net sales of approximately $60 m for sensors and global sustainment programs due to lower volume on the Apache sensors program; and about $35m due to the divestiture of the Distributed Energy Solutions business in November 2019.
MFC's operating profit in the third quarter of 2020 increased $56m, or 16 percent, compared to the same period in 2019. Operating profit increased approximately $50m for integrated air and missile defense programs due to increased volume and higher risk retirements on international contracts (primarily PAC-3); and about $45 m for tactical and strike missile programs due to higher volume (primarily GMLRS and HIMARS) and higher risk retirements (primarily Long Range Standoff Weapon (LRSO)). These increases were partially offset by a decrease of approximately $40 m for sensors and global sustainment programs due primarily to lower risk retirements and a reduction in the profit booking rate on the Apache sensors program. Adjustments not related to volume, including net profit booking rate adjustments, were $25m lower in the third quarter of 2020 compared to the same period in 2019.
Rotary and Mission Systems
RMS' net sales in the third quarter of 2020 increased $289m, or 8 percent, compared to the same period in 2019. Net sales increased approximately $180m for Sikorsky helicopter programs due to higher volume primarily on production contracts (primarily Seahawk, VH-92A, and Combat Rescue Helicopter (CRH)); about $55m for various training and logistics solutions (TLS) programs due to higher volume; and about $35 m for integrated warfare systems and sensors (IWSS) programs due to higher volume primarily on the Aegis Combat System (Aegis) partially offset by lower volume on Littoral Combat Ship (LCS).
RMS' operating profit in the third quarter of 2020 increased $62m, or 18 percent, compared to the same period in 2019. Operating profit increased approximately $30m for Sikorsky helicopter programs due to higher volume on production contracts (primarily VH-92A and CRH), customer mix, and better cost performance on international military aircraft programs; and about $30m for IWSS programs due to higher risk retirements (primarily Radar Surveillance Systems and Aegis). Adjustments not related to volume, including net profit booking rate adjustments, were $15 m lower in the third quarter of 2020 compared to the same period in 2019.
Space's net sales in the third quarter of 2020 increased $163m, or 6 percent, compared to the same period in 2019. The increase was primarily attributable to higher net sales of approximately $90m for government satellite programs due to higher volume (primarily Next Generation Overhead Persistent Infrared (Next Gen OPIR)); and about $60m for strategic and missile defense programs due to higher volume (primarily hypersonic development programs).
Space's operating profit in the third quarter of 2020 decreased $61 m, or 20 percent, compared to the same period in 2019. Operating profit decreased approximately $50m due to lower equity earnings from the corporation's investment in United Launch Alliance (ULA); about $15m for government satellite programs due to lower risk retirements (primarily Advanced Extremely High Frequency (AEHF)); and about $15m for strategic and missile defense programs due to lower risk retirements (primarily Fleet Ballistic Missiles). These decreases were partially offset by an increase of approximately $15m for commercial satellite programs due to charges recorded for performance matters in 2019 not repeated in 2020. Adjustments not related to volume, including net profit booking rate adjustments, were $25m lower in the third quarter of 2020, compared to the same period in 2019.
Total equity earnings recognized by Space (primarily ULA) represented approximately $5m, or 2 percent of Space's operating profit in the third quarter of 2020, compared to approximately $55m, or 18 percent in the third quarter of 2019.
The corporation's effective income tax rate was 14.7 percent in the third quarter of 2020, compared to 9.7 percent in the third quarter of 2019. The rate for the third quarter of 2019 was lower primarily due to a $62m benefit, or $0.22 per share, of additional tax deductions for 2018 attributable to foreign derived intangible income treatment based on proposed tax regulations released on March 4, 2019, and a change in tax accounting method, reflecting a 2012 Court of Federal Claims decision, which held that the tax basis in certain assets should be increased and realized upon the assets' disposition.
The rates for both periods benefited from additional tax deductions based on proposed tax regulations released on March 4, 2019, which clarified that foreign military sales qualify for foreign derived intangible income treatment. On July 9, 2020, the U.S. Treasury Department issued final tax regulations related to foreign derived intangible income. The final tax regulations confirm foreign military sales qualify for foreign derived intangible income treatment. We continue to assess the other effects of the final regulations.
The rates for both periods also benefited from the research and development tax credit, dividends paid to the corporation's defined contribution plans with an employee stock ownership plan feature, and tax deductions for employee equity awards.
Northrop Grumman Reports Third Quarter 2020 Financial Results
• Net Awards Total $20.3bn; 2.2 Book to Bill
• Total Backlog Increases to Record $81.3bn
• Sales Increase 7 Percent to $9.1bn
• EPS Increase 7 Percent to $5.89
• Cash from Operations Increases 19 Percent to $1.4bn
• Free Cash Flow1 Increases 22 Percent to $1.1bn
• 2020 Guidance Raised; Company Now Expects Sales of $35.7 to $36bn, MTM-adjusted EPS1 of $22.25 to $22.65, and Free Cash Flow1 of $3.3 to $3.6bn
22 Oct 20. Northrop Grumman Corporation (NYSE: NOC) reported third quarter 2020 sales increased 7 percent to $9.1bn from $8.5bn in the third quarter of 2019. Third quarter 2020 net earnings increased 6 percent to $1.0 bn, or $5.89 per diluted share, from $933m, or $5.49 per diluted share, in the third quarter of 2019.
"Northrop Grumman had a strong third quarter as we continue to execute our growth strategy, deliver solid program performance and focus on the well-being of our people," said Kathy Warden, chairman, chief executive officer and president. "In both our third quarter and year to date results, we achieved higher sales, earnings and cash, while strengthening our foundation for the future with robust new business awards and a record backlog. We are pleased to offer the solutions and innovations that are being selected by our customers to enable their highest priority missions."
Third quarter 2020 sales increased $608m, or 7 percent, due to higher sales at Space Systems, Mission Systems and Aeronautics Systems.
Operating Income and Margin Rate Third quarter 2020 operating income increased $34 m, or 4 percent, primarily due to an increase in segment operating income, partially offset by higher unallocated corporate expense and a lower net FAS (service)/CAS pension adjustment. The increase in third quarter 2020 unallocated corporate expense is primarily due to $50 m of higher state tax expense principally related to changes in deferred state income taxes and an increase in reserves, in part, for potential unallowable costs associated with state apportionment, partially offset by $17 m of lower intangible asset amortization and PP&E step-up depreciation.
Third quarter 2020 operating margin rate declined to 10.8 percent reflecting an increase in unallocated corporate expense and lower net FAS (service)/CAS pension adjustment, partially offset by a higher segment operating margin rate. Segment Operating Income and Margin Rate Beginning in the second quarter of 2020, certain unallowable compensation and other costs previously included in segment operating results are now reported in Unallocated corporate expense within operating income as the company no longer considers these costs as part of management's evaluation of segment operating performance. This change, which increased third quarter 2020 segment operating income by $10m, has been applied retrospectively and recast results are presented in Schedule 7. Third quarter 2020 segment operating income increased $94 m, or 10 percent, due to higher segment operating income at all four sectors. Increased costs in the quarter as a result of additional state apportionment reserves were largely offset by lower costs for health benefits and corporate overhead. Segment operating margin rate increased to 11.5 percent principally due to higher operating margin rates at Defense Systems and Aeronautics Systems, partially offset by a lower operating margin rate at Mission Systems. Federal and Foreign Income Taxes The third quarter 2020 effective tax rate increased to 15.5 percent from 11.6 percent in the prior year period primarily due to lower research credits, partially offset by benefits relating to foreign-derived intangible income.
Operating Cash Flows
Third quarter and year to date 2020 cash provided by operating activities increased $220m and $870m, respectively, principally due to improved trade working capital and higher net earnings. Third quarter and year-to-date free cash flow1 increased to $1.1bn and $1.9bn, respectively, after third quarter capital spending of $287m and year-to-date capital spending of $828 m.
Awards and Backlog
Third quarter and year to date 2020 net awards totaled $20.3bn and $43.0bn, respectively, and backlog increased to $81.3bn. Significant third quarter new awards include $13.3bn for the Ground Based Strategic Deterrent EMD program, $1.9 bn for restricted programs and $0.9 bn for F-35. Segment Operating Results Segment operating results for the three and nine months ended Sept. 30, 2019 have been recast to reflect changes in the company's organizational structure and reportable segments effective Jan. 1, 2020.
AERONAUTICS SYSTEMS
Third quarter 2020 sales increased $144 m, or 5 percent, due to higher sales in both Manned Aircraft and Autonomous Systems. Higher volume on restricted programs, as well as E-2D and F-35 production programs, was partially offset by a COVID-19-related reduction in A350 production activity.
Third quarter 2020 operating income increased $25 m, or 9 percent, due to higher sales and a higher operating margin rate. Operating margin rate increased to 10.1 percent from 9.7 percent principally due to favorable overhead rate performance, which more than offset lower net EAC adjustments.
DEFENSE SYSTEMS
Third quarter 2020 sales decreased $72m, or 4 percent, due to lower sales in both Mission Readiness and Battle Management & Missile Systems. Mission Readiness sales decreased primarily due to lower volume on the Hunter sustainment program as it nears completion. Battle Management & Missile Systems sales decreased principally due to lower volume on programs nearing completion, including several small caliber ammunition programs and an international weapons program, partially offset by higher volume on the Guided Missile Launch Rocket System (GMLRS), the Advanced Anti-Radiation Guided Missile (AARGM) program and other missile products.
Third quarter 2020 operating income increased $16 m, or 8 percent, due to a higher operating margin rate, partially offset by lower sales. Operating margin rate increased to 11.7 percent from 10.4 percent primarily due to improved performance on Battle Management & Missile Systems programs.
MISSION SYSTEMS
Third quarter 2020 sales increased $241m, or 10 percent, due to higher volume in all four business areas. Airborne Sensors & Networks sales increased primarily due to higher airborne radar volume, including on the Multi-role Electronically Scanned Array (MESA) and F-35 programs. Navigation, Targeting & Survivability sales increased principally due to higher volume on self-protection programs and targeting systems, including the LITENING program. Maritime/Land Systems & Sensors sales increased primarily due to higher volume on marine systems programs and the Ground/Air Task Oriented Radar (G/ATOR) program. Cyber & Intelligence Mission Solutions sales increased principally due to higher restricted volume.
Third quarter 2020 operating income increased $19m, or 5 percent, due to higher sales, partially offset by a lower operating margin rate. Operating margin rate decreased to 14.5 percent from 15.2 percent primarily due to timing of net EAC adjustments on Airborne Sensors & Networks programs and changes in contract mix on Navigation, Targeting & Survivability programs, partially offset by improved performance on Maritime/Land Systems & Sensors.
Third quarter 2020 sales increased $313m, or 17 percent, due to higher sales in both Space and Launch & Strategic Missiles. Space sales were driven by higher volume on restricted programs, Next Generation Overhead Persistent Infrared (Next Gen OPIR) and NASA Artemis programs. Launch & Strategic Missiles sales reflect higher volume on launch vehicles and hypersonics programs, partially offset by lower volume on the Commercial Resupply Service (CRS) missions.
Third quarter 2020 operating income increased $33 m, or 17 percent, due to higher sales. Operating margin rate of 10.2 percent was comparable to the prior year period.
Financial guidance, as well as outlook, trends, expectations and other forward looking statements provided by the company for 2020, 2021 and beyond, reflect the company's judgment based on the information available to the company at the time of this release. The company is increasing its 2020 financial guidance based on year-to-date performance and its most current outlook for the remainder of the year. The company's 2020 financial guidance and outlook for 2021 and beyond reflect the impacts experienced to date from the global COVID-19 pandemic (discussed in the company's Form 10-Qs), and what the company currently anticipates, based on what the company understands today, to be the impacts on the company for the remainder of the year and beyond. The company's updated financial guidance and outlook assume generally that the most significant adverse impacts from the pandemic on the company's business, financial position, results of operations or cash flows occurred in the second quarter of 2020. However, the company cannot predict how the pandemic will evolve or what impact it will continue to have, and there can be no assurance that the company's underlying assumptions are correct. As discussed more fully in the company's Form 10-Qs (for Q1, Q2 and Q3), and among other factors, disruptions to the company's operations (or those of its customers or supply chain), additional costs, disruptions in the market, and impacts on programs or payments relating to the global COVID-19 pandemic, today and as it may evolve, can be expected to affect the company's ability to achieve guidance or meet expectations. In addition, the government budget, appropriations and procurement processes can impact our customers, programs and financial results. These processes, including the timing of appropriations and the occurrence of an extended continuing resolution and/or prolonged government shutdown, as well as a breach of the debt ceiling, or changes in support for our programs or in federal corporate tax rates, can impact the company's ability to achieve guidance or meet expectations.
Raytheon Technologies Reports Third Quarter 2020 Results
Results reflect continued progress and acceleration of cost reduction and cash conservation actions
27 Oct 20. Raytheon Technologies Corporation (NYSE: RTX) reported third quarter 2020 results.
Sales of $14.7 bn; Adjusted sales of $15.0bn
GAAP EPS from continuing operations of $0.10, which included $0.48 of net significant and/or non-recurring charges and acquisition accounting adjustments
Adjusted EPS of $0.58
Operating cash flow from continuing operations of $1.6bn
Free cash flow of $1.2bn
Achieved ~$700 m in cost reduction and ~$1.9 bn in cash conservation actions
Robust Defense backlog of $70.2bn
"We delivered sales that were in line with our expectations as well as better than expected adjusted EPS and free cash flow during the quarter as we achieved approximately $700 m of cost reduction and $1.9 bn of cash conservation actions, which was significantly better than our plan. We are delivering on our commitments to customers while taking the necessary actions that will equip us to weather the current environment and emerge as a stronger business," said Raytheon Technologies Chief Executive Officer Greg Hayes. "The long-term business fundamentals and earnings power of Raytheon Technologies remain strong with our balanced portfolio, leading businesses and advanced technologies that combine the best of commercial aerospace and defense."
Raytheon Technologies reported third quarter sales of $14.7bn and adjusted sales of $15.0bn. GAAP EPS from continuing operations was $0.10 and included $0.48 of net significant and/or non-recurring charges and acquisition accounting adjustments. This includes a net gain on dispositions of $0.17 per share, which was more than offset by $0.27 of acquisition accounting adjustments primarily related to intangible amortization, $0.26 of charges due to the current economic environment primarily driven by the COVID-19 pandemic, and $0.12 of restructuring. Adjusted EPS was $0.58.
The company recorded net income from continuing operations in the third quarter of $151m, which included $721m of net significant and/or nonrecurring charges and acquisition accounting adjustments. Adjusted net income was $872m. Operating cash flow from continuing operations in the third quarter was $1.6bn and was better than expected primarily due to the timing of customer collections and the accelerated execution on cash conservation actions. Capital expenditures were $389m, resulting in free cash flow of $1.2bn. Free cash flow included approximately $600m of merger costs, restructuring and tax payments on divestitures. This quarter's performance includes approximately $700m of cost savings and approximately $1.9bn of cash conservation actions, reflecting substantial progress on our previously stated goal of $2 bn in cost savings and $4bn in cash conservation actions by the end of 2020.
Bookings and Orders
Backlog at the end of the third quarter was $152.3bn, of which $82.1bn was from commercial aerospace and $70.2 bn was from defense.
Notable defense bookings during the quarter included:
$928m of classified bookings at Raytheon Intelligence & Space (RIS)
$473m of F-135 bookings at Pratt & Whitney
$320 m award for a multi-year Extravehicular Space Operations Contract (ESOC) to provide services, upgrades and sustainment in support of NASA's Extra Vehicular Activity (EVA) on the International Space Station at Collins Aerospace
$186m on the Army Navy/Transportable Radar Surveillance-Model 2 (AN/TPY-2) radar program for the Kingdom of Saudi Arabia (KSA) at Raytheon Missiles & Defense (RMD)
$176m to perform operations and sustainment for the U.S. Air Force's Launch and Test Range System (LTRS) at RIS
The company's reportable segments are Collins Aerospace, Pratt & Whitney, Raytheon Intelligence & Space (RIS) and Raytheon Missiles & Defense (RMD). In connection with the merger, the company revised its segment presentation. Prior periods have been revised to reflect the current presentation.
Collins Aerospace
Collins Aerospace had third quarter 2020 adjusted sales of $4,278m, down 34 percent versus the prior year. Commercial OE was down 44 percent and commercial aftermarket was down 52 percent, while military was up 4 percent. Excluding the impact of the Military GPS and Space ISR divestitures and FX, military was up 8 percent in the quarter. The decrease in commercial sales was driven primarily by the current environment which has resulted in lower flight hours, aircraft fleet utilization and commercial OEM deliveries, as well as the impact of the 737 MAX grounding and lower ADS-B mandate volume. This was slightly offset by higher sales across key military platforms.
Collins Aerospace recorded adjusted operating profit of $73m in the quarter, down 94 percent versus the prior year. The decrease in adjusted operating profit was driven by lower commercial aerospace OEM and aftermarket sales volume. This was partially offset by cost reduction actions and gross margin drop through on higher military volume.
Pratt & Whitney had third quarter 2020 adjusted sales of $3,790 m, down 28 percent versus the prior year. Commercial OE was down 30 percent and commercial aftermarket was down 51 percent, while military was up 11 percent. The decrease in commercial sales was primarily due to a significant reduction in shop visits and related spare part sales and commercial engine deliveries principally driven by the current environment. This was slightly offset by higher F135 engine sales, F117 overhauls and aftermarket growth on multiple fighter jet platforms.
Pratt & Whitney recorded an adjusted operating loss of $43m in the quarter, down 108 percent versus the prior year. The decrease in adjusted operating profit was primarily driven by lower commercial aerospace sales volume and unfavorable mix. This was partially offset by cost reduction actions and gross margin drop through on higher military volume.
Raytheon Intelligence & Space (RIS)
RIS had third quarter adjusted sales of $3,674m and adjusted operating profit of $348m.
Raytheon Missiles & Defense (RMD)
RMD had third quarter adjusted sales of $3,794m and adjusted operating profit of $453m.
About Raytheon Technologies
Raytheon Technologies Corporation is an aerospace and defense company that provides advanced systems and services for commercial, military and government customers worldwide. With four industry-leading businesses ― Collins Aerospace Systems, Pratt & Whitney, Raytheon Intelligence & Space and Raytheon Missiles & Defense ― the company delivers solutions that push the boundaries in avionics, cybersecurity, directed energy, electric propulsion, hypersonics, and quantum physics. The company, formed in 2020 through the combination of Raytheon Company and the United Technologies Corporation aerospace businesses, is headquartered in Waltham, Massachusetts.
TEXTRON Reports Third Quarter 2020 Results
Strong operating margins at Bell and Systems
Recovery continues at Industrial and Aviation end-markets
Manufacturing cash flow before pension contributions of $344 m, up 90% from prior year
29 Oct 20. Textron Inc. (NYSE: TXT) today reported third quarter 2020 net income of $0.50 per share, compared to $0.95 per share in the third quarter of 2019. Adjusted net income, a non-GAAP measure, was $0.53 per share for the third quarter of 2020. Adjusted net income excludes $7m of pre-tax special charges ($0.03 per share, after-tax) related to the restructuring plan announced in the second quarter.
"Operationally, we saw continued strength in our execution at our defense businesses with solid margin performance at Bell and Systems," said Textron Chairman and CEO Scott C. Donnelly. "On the commercial side, we saw a continuation of the recovery at Industrial with strong operating results and margin improvement. At Aviation, we were encouraged by the flow of aircraft orders in the quarter as our sales teams re-engaged customers in the field."
Net cash provided by operating activities of the manufacturing group for the third quarter totaled $368m, compared to $238m in last year's third quarter. Manufacturing cash flow before pension contributions, a non-GAAP measure, totaled $344m, compared to $181m last year.
Donnelly continued, "The execution of our teams in a very challenging operating environment yielded another strong quarter of cash flow."
Third Quarter Segment Results
Revenues at Textron Aviation of $795m were down $406m from the third quarter of 2019, primarily due to lower Citation jet volume of $234m and lower commercial turboprop volume of $83m, reflecting a decline in demand related to the pandemic, and lower aftermarket volume of $95 m, reflecting lower aircraft utilization.
Textron Aviation delivered 25 jets, down from 45 last year, and 21 commercial turboprops, down from 39 last year.
Segment loss was $29m in the third quarter, down from $104 m of profit last year, primarily due to the lower volume and mix.
Textron Aviation backlog at the end of the third quarter was $1.8bn.
Bell revenues were $793m, up $10m from last year on higher military revenues, partially offset by lower commercial revenues, primarily due to the mix of aircraft sold.
Bell delivered 41 commercial helicopters in the quarter, down from 42 last year.
Segment profit of $119m was up $9m, primarily due to a favorable impact from performance.
Bell backlog at the end of the third quarter was $5.7bn.
Textron Systems
Revenues at Textron Systems were $302m, down $9m from last year, primarily due to lower volume of $20 m at the TRU Simulation + Training business.
Segment profit of $40m was up $9m from last year due to a favorable impact from performance, partially offset by lower volume and mix.
Textron Systems' backlog at the end of the third quarter was $1.9bn.
Industrial revenues of $832m were down $118m from last year, primarily due to lower volume and mix in the Specialized Vehicles product line, principally reflecting the timing of snowmobile deliveries and reduced demand in the ground support equipment business, which has been impacted by the reduction in global air travel.
Segment profit was $58m, up $11m from the third quarter of 2019, primarily related to a favorable impact from performance of $24m, principally reflecting cost reduction activities, partially offset by lower volume and mix.
Finance segment revenues were $13m, and profit was $1m.

redpajama_set_name: RedPajamaCommonCrawl


text:
María Gabriela Villalba Jervis (Quito, 20 de septiembre de 1984) es una cantante, actriz y activista ecuatoriana, conocida por formar parte del quinteto ecuatoriano Kiruba y posteriormente ser parte del cuarteto de pop rock chileno Kudai desde la salida de Nicole Natalino en
2006 hasta su separación en 2010.

Biografía
Sus padres son Juan Carlos Villalba Villalba y Paulina Jervis. Es la mayor de siete hermanos.

La carrera musical de Villalba comienza a inicios del 2003 al convertirse en una de las 5 ganadoras del programa de telerrealidad Popstars en Ecuador. Luego de tres meses de competencia y grandes duelos musicales entre las participantes los jueces eligieron a Gabriela entre más de 3500 aspirantes, para ser una de las cinco integrantes de la banda que más tarde adoptaría el nombre de Kiruba.

El quinteto lanzó su primer trabajo discográfico, titulado Kiruba, con el sello MTM Records bajo la producción de Eduardo de Narváez. Apenas se lanzó el disco, las ventas se dispararon vendiendo 5000 copias en tan solo 2 días.

Un mes más tarde la agrupación recibió disco de doble platino. Kiruba se convirtió en un fenómeno nacional en Ecuador. «Quisiera» su primer sencillo ocupó el primer lugar durante varias semanas consecutivas en las radios más populares de Ecuador y alcanzó el decimoquinto lugar dentro del conteo latinoamericano de la cadena HTV. En el 2004 el grupo lanza su segundo y último álbum Baila la luna producido por Ivis Flies y Lamine Fellah. Su primer y único sencillo «Me quedo contigo», alcanzó rápida popularidad en las listas ecuatorianas. Ese mismo año la banda anuncia su separación definitiva.

A inicios de 2004 recibe una propuesta para incursionar en el mundo de la actuación con el papel protagónico de Catalina, una joven cantante en la telenovela colombiana Al ritmo de tu corazón.

El 2006 es el año en que Villalba regresa a los escenarios, esta vez en solitario con su disco «Todo bien». El primer sencillo de este material, «Me doy vueltas», alcanzó a ser número uno en las radios de mayor popularidad de su país natal.

Ese mismo año, tras abrir un concierto por parte de EXA FM a la agrupación juvenil chilena Kudai recibe la invitación del cuarteto para unirse a la banda como artista invitada a su primera gira musical en México.

Tiempo después Gabriela se integró en la banda chilena Kudai tras la salida de Nicole Natalino, regrabando su segundo álbum «Sobrevive» con su voz. Mientras perteneció a la agrupación, obtuvo varios reconocimientos como Grupo latino del año en los premios Orgullosamente latino, y de MTV como Mejor grupo pop, hasta su participación en el Festival de Viña del Mar 2007.

El 2010 la banda anuncia su separación oficial tras lanzar al mercado su disco recopilatorio "Grandes Éxitos" como despedida para sus seguidores.

Gabriela decidió alejarse tres años de los escenarios para dedicarse a sus estudios y a su vida privada. Sufrió de bulimia nerviosa, experiencia que la lleva a involucrase a fines del 2011 en la campaña Yo me quiero como soy para luchar e informar a los jóvenes acerca de los desórdenes alimentarios.

Su tiempo fuera del escenario y su experiencia como embajadora de UNICEF le llevó a explorar su interés personal por las comunidades indígenas de Sudamérica con el Proyecto "ALAS para el Sur", que realiza de la mano de su padre.

Después de más de una década de una carrera artística y tras haber abandonado los escenarios durante tres años, Gaby regresó en el 2013 con Psycho, estrenándose como cantautora.

En 2016 Gabriela Villalba lanza su sencillo "París", convirtiéndose en un éxito radial en Ecuador. La canción llegó al Top 10 del Ecuador Top 40 de Charts Ecuador, lista que presenta a las canciones más populares del país; y, alcanzó el #2 en la lista Top 25 Nacionales como la segunda canción de un artista ecuatoriano más popular en el país.

En agosto del 2017, Kiruba anunció su regreso al escenario en los medios, con las 5 miembros originales de la agrupación en la portada de la revista "Hola". El 30 de enero de 2018, Kiruba estrenó su nueva canción "Se Me Fue", una canción que cuenta con la colaboración de Magic Juan, un exmiembro de Proyecto Uno. La canción llegó al #1 en el Top 25 Nacionales de Charts Ecuador y al Top 40 a nivel general de acuerdo al mismo medio. Su segundo sencillo de regreso "Alma" alcanzó la posición #11 de la lista de sencillos ecuatorianos. En diciembre de 2018 Kiruba ganó la categoría a Mejor Artista Pop en lo Mejor del Año en Charts Ecuador.

En abril de 2019 participó en la campaña de misión sostenible, con el objetivo de generar consciencia en el cuidado de los mares. La campaña se basa en la difusión de imágenes de como quedan las playas después de un feriado y el impacto que tienen los turistas en ellas. Junto con otros influencers. Gabriela contribuye su amor con la naturaleza y comunica mensajes de cuidado del medio ambiente.

Hasta el momento, Gabriela no ha formado parte del reencuentro de Kudai, grupo con el cual catapultó su popularidad en América Latina, sin embargo, Nicole Natalino, miembro del grupo, declaró a algunos fans en México que podrían llegar a colaborar con ella en el futuro.

Discografía

Álbumes de estudio con Kiruba
 Kiruba (2003)
 Baila la luna (2004)

Sencillos con Kiruba
 «Quisiera» (2003)
 «Camina» (2003)
 «Cómo extraño tu luz» (2003)
 «Me pierdo» (2003)
 «Me quedo contigo» (2004)
 «Se me fue» (2018)
 «Alma» (2018)

Álbumes de estudio con Kudai
 Sobrevive (2006)
 Nadha (2008)
 Grandes éxitos (2010)

Sencillos con Kudai
 «Déjame gritar» (2006)
 «Llévame» (2006)
 «Tal vez» (2007)
 «Tú» (2007)
 «Lejos de aquí» (2008)
 «Nada es igual» (2008)
 «Morir de amor» (2009)
 «Hoy Quiero» (2008)
 «Ladrando a la Luna» (2008)
 «Disfraz» (2009)
 «Nuestros Destinos» (2010)

Álbumes de estudio como solista
 Todo bien (2006)
 Maletas en la puerta (2017)

Sencillos en solitario

Telenovelas

Referencias

Mujeres del siglo XXI
Personas de Quito
Cantantes femeninas de Ecuador
Actrices de Ecuador

redpajama_set_name: RedPajamaWikipedia


The 17-year October tradition will continue this year with guided gentle-walking tours in the City Cemetery on October 6th and 7th; 13th and 14th from noon until 3 p.m. Tours will leave from the main gate of the cemetery (Vine & 5th) every 15-minutes, visit 8 stops, and meet 11 actor/docents who portray notable persons from Alton's rich history.
The characters and themes of this year's tours were carefully selected by Director Lee Cox to represent some of the pride she herself feels in being a "hometown" girl who has come to even better appreciate her community through her work with Vintage Voices over the last six years. Knowing that this may be the last year her schedule allows her to coordinate the project she wanted to leave a lasting impression of inspiration for the many loyal visitors who attend the fall fundraiser each year. So, Lee and others are "bringing to life" some entertaining characters in commemoration of some of Alton's finest (and saddest) hours to inspire us all to pick up the mantle of responsibility for making our community a better place to live for all.
The Legacy of Strong Women (Sophie Demuth and Mother Jones) will be portrayed by Loretta Williams; The Legacy of Gentle Strength (and commemoration of Robert Wadlow) will be portrayed by Nick Trapp and Kerry Miller (as Charles Goulding); The Legacy of Love & Literacy will be portrayed by Nadja Kapetanovich and Diana Kay, celebrating the Haskell/Hayner families; The Legacy of Philanthropy will commemorate Dr. Gordon Moore, portrayed by Brant McCance; The Legacy of Life Lessons - Remembering Elijah P. Lovejoy will feature Lief Anderson as Edward Lovejoy and Lorian Warford as Anson B. Platt; the Legacy of Hometown Pride will commemorate Illinois Statehood and Alton's history through the eyes of Don Alonzo Spaulding and be portrayed by Michael Cox; the Legacy of Arts and Culture will feature an homage to ALT Founder, Dorothy Colonius (to be portrayed by Pat Kulish), and the Legacy of Tolerance and Inclusion will celebrate the YWCA's 100th Birthday as seen through the eyes of Mary White Ovington as portrayed by Gail Drillinger.
The cost of Adult tours is $15; students under 18 may attend for $10. Tickets will be available at the Alton Visitor's Center by September 1st and at the main gate of the cemetery at least 30 minutes before the tours begin.
A Non-Walking Brunch will be held at the ALT Showplace on Saturday, October 13th at 10 a.m., catered by My Just Desserts. The cost for the brunch and presentation is $25 and tickets for this event may be purchased through the ALT Box Office at 462-3205 and through the ALT Website by clicking here.
Barb Hinson is in need of Volunteers for tour guides. Margaret Hopkins, Charlotte Stetson, Jody Basola and Don Huber are all part of the steering committee finalizing the plans for this year's most memorable tour ever!
Twelve actors will perform in the comfort of the Dorothy Colonius Foyer at the ALT Showplace on Saturday, October 13 at 10 a.m.
Brunch will be provided by My Just Desserts.
Tickets are just $25 for this special event, perfect for those who cannot or would rather not partake in the walking cemetery tours beginning at noon the same day.
Only 60 seats will be sold.
Call 462-3205 to secure your ticket or click here to purchase online.


text:
Final Regulations Reflect TCJA Changes to Entertainment and Meal Deductions
Final regulations reflect the significant changes that the Tax Cuts and Jobs Act (TCJA) ( P.L. 115-97) made to the Code Sec. 274 deduction for travel and entertainment expenses. These regulations finalize, with some changes, previously released proposed regulations, NPRM REG-100814-19.
Changes to Code Sec. 274 under the TCJA
For most expenses paid or incurred after 2017, TCJA:
repealed the "directly related to a trade or business" and the business-discussion exceptions to the general disallowance of entertainment expense deductions;
eliminated the general business expense deduction for 50 percent of entertainment (but not meal) expenses; and
repealed the special substantiation rules for deductible entertainment (but not travel) expenses. Taxpayers may rely on the proposed regulations until they are finalized.
Entertainment Expenses
Among other things, Reg. §1.274-11:
restates the statutory rules of Code Sec. 274(a), including the entertainment deduction disallowance rule for dues or fees to any social, athletic, or sporting club or organization;
substantially incorporates the existing definition of "entertainment" from Reg. §1.274-2(b)(1); and
confirms that the nine exceptions in Code Sec. 274(e) continue to apply to deductible entertainment expenditures.
The regulations also confirm that "entertainment" does not include food or beverages unless they are provided at or during an entertainment activity, and their costs are included in the entertainment costs.
Food and Beverage Expenses
As under the proposed regulations, Reg. §1.274-12 allows taxpayers to deduct 50 percent of business meal expenses if:
the expense is an ordinary and necessary business expense;
the expense is not lavish or extravagant; the taxpayer or an employee is present when the food or beverage is furnished;
the food or beverage is provided to a current or potential business customer, client, consultant, or similar business contact; and
food and beverages that are provided during or at an entertainment activity are purchased separately from the entertainment, or their cost is separately stated.
With respect to the fourth requirement listed above, the final regulations adopt the definition of "business associate" in Reg. §1.274-2(b)(2)(iii), but expands it to include employees. Thus, these requirements would apply to employer-provided meals to employees as well as non-employees. The final regulations also flesh out the fifth requirement listed above, and clarify that the separate charges for entertainment-related food and beverages must reflect their actual cost, including delivery fees, tips, and sales tax. Indirect expenses such as transportation to the food are not included in the actual cost.
Exceptions and Special Rules
Food or beverage expenses for employer-provided meals at an eating facility do not include expenses for the operation of the facility, such as salaries of employees preparing and serving meals, and other overhead costs. The final regulations apply the TCJA changes to the exceptions and special rules for deductible food and beverages in Code Sec. 274(e), Code Sec. 274(k) and Code Sec. 274(n), including:
reimbursed food or beverage expenses;
recreational expenses for employees;
items available to the public; and
goods or services sold to customers.
The final regulations also provide examples on several specific scenarios to illustrate the rules.


My Qur'an teacher taught his class one day that the word fitna is of the Arabic root alfatn.
All Arabic root-words are verbs, not nouns — the root would be fatana, meaning both "he tested" and "to test".
I'm not really sure what this recent fitna (of 2 or 3 years ago) you are talking about refers to, but the "Salafi inquisition" affected only "salafis" who were mostly a different demographic from those who got involved in the traditionalist movement, particularly in America. Traditionalism was a bottom-up movement among young English-speaking Muslims who wanted an authentic traditional Islam that wasn't affected by the Indo-Pak Bareilawi-Deobandi schism (i.e. you no longer had to keep some of your friends secret from the others) and which it wasn't necessary to learn Urdu to be part of. It was also about providing comprehensive rebuttals to the "salafi" claims to keep young people from falling for them.
The "inquisition" wasn't just about requiring "that the enthusiastic new faithful declare exactly which type of Salafi they were" – it was aimed at everyone in the western "salafi" communities, and tore apart long-standing friendships and even marriages and resulted in businesses going bust because of boycotts. I'm not sure how many of the victims ended up as traditionalists.
This latest bout of fitna has less to do with doctrine as with class, with perhaps a culture clash between some of the converts and the lifestyle in the Middle East where they spent time or settled, with some genuine abuses, and with a breakdown in tolerance, and this may have something to do with the end of the Bush administration which required Muslims to have at least some solidarity with each other.
Perhaps you are talking about a different group of people, Yusuf.
"All Arabic root-words are verbs, not nouns — the root would be fatana, meaning both 'he tested' and 'to test'.
A small point (just for benefit): The stronger view of the morphologists is that Arabic roots derive from nouns [asma'] and not verbs. That is because , Allah says that He taught Adam the names [asma'] of everything, and  nouns are simpler because they do not denote a "doer" or particular time [past, present, or future].
A much needed reminder. We are indeed tested. Sometimes a darkness descends upon us, such that is like the darkest part of a stormy night where one would not see his own arm outstreched befor him. Allahuma we ask for Your Light and we beg for forgiveness.
As an ex-atheist, that sums things up better then anything else I have read on the matter.


text:
Venice behind the mask
by wp_2342834 January 29, 2019 February 25, 2019 Reportage
The Venice Carnival is one of the most spectacular and famous symbols of the Lagoon City and it doesn't need many clarifications. While who is behind the event, creating those mervellous masks, often remains anonymous.
With this reportage, we want you to descover the magic world of 'Mascareri', so are called the artisans who build the papier-machè masks for Carnival. These are the inheritors of a secular tradition, which dates back to 400 A.D., and that, still nowadays, represents the most living part of the quality Venetian handicrafts.
Visiting their shops , laboratories of fantasy and creativity, is also the occasion to understand what the masking art means to Venice. An old custom, a collective rite, that used to overcome differences between rich and poor, because the mask hid the face, making people unrecognizable so that everyone looked the same. Once upon a time, Venitians used to mask for many occasions, not only for Carnival, but also for their leader's (called Doge) election, for any party event, when they gambled and for love meetings.
In 1400 A.D., the papier-machè mask was so popular that the Doge Foscari granted a particular law to the 'Mascareri'.
Many traditional maskings are still worn today starting from the Bauta, that comprehends a white mask called Larva, a black tricorne hat and a heavy cloack of the same colour. Or the Moretta made of black velvet; Gnaga which looks like a cat or the Civetta which only covers the eyes. And then the Plague Doctor, rapped up in a black mantel, with a large brim hat, hid hands holding a stick not to touch the pestilents' clothes. The face was covered by glasses and by a white mask with a big and prominent nose to contain spices and mixes of medical erbs which protected from the Plague.
In the 1980s, after 200 years of oblivion (when, in 1797, the Venitian Republic ended, masking was prohibited by the new governors), the Carnival of Venice started living again and with it the art of building masks.
In that precise moment, Mario Belloni, with other students from the Architecture Faculty,opened a workshop, called Cà Macana, close to Campo San Barnaba. A fantastic place where we can admire papier-marchè and leather masks of all kinds: small, huge, simple, exaggerated, inspired by the characters of the Art Commedy or products of pure fantasy.
On walls and shelves there are Baute and Morette, Civette with sprinkles and coloured feathers; faces with incredible expressions, that makes the workshop a sort of fantastic stage.
Here, we can also discover techniques and handmade working and painting materials. A chalk calque is separated from the original clay mould and dressed with different layers of sticky papaer lines. Once dry, the papier-machè mask is taken off from the calque and with a scalpel the artisan cuts off eyes, nostrils , mouth and he refines the outlines.
Then , he also applies a first colour stratum and he proceeds with the decoration. The Cà Macana masks have been protagonists in many theaters and they have been commmissioned by famous film makers.
In the workshop Papier-machè, in Sestiere Castello, Stefano Gottardo and his collabourers create classy and modern masks inspired by Picasso, Kandinsky and Modigliani. They are all unique pieces, because the moulding process requires precision and skills.
Still in Sestriere Castello, in Fondamenta dell'Osmarin, 4964, there is Cà del Sol, Hamid Seddighi's shop, another famous artisan of persian origins, but living in Venice for many years, who creates mervellous traditional masks, made of leather, ceramics or with starched lace . They are all handpaintd and embellished with ribbons and crystals or coverd with a golden leaf.
Here we can buy the Venice traditional masks, the ones inspired by the Art Comedy ( Arlequin, Colombina, Pantalone etc…) or more fantastic models. It is also very plesant watching Hamid working and teaching his art to adults and children, during the classes he organises . At the end of his classes, everyone goes home with their own mask.
Other articles about Venice:
Stunning Venice first part
Stunning Venice second part
Stunning Venice third part
Salento (Puglia) / A trip from Coast to Coast


text:
Judge Issues Stay In Rotruck's Summerfield Lawsuit
Posted by Scott D. Yost | Feb 12, 2019 | News
On Thursday, Feb. 12, Superior Court Judge David Hall, issued a stay in the lawsuit brought by former Summerfield Town Councilmember Todd Rotruck against sitting Town Councilmember Dianne Laughlin – who occupies the seat Rotruck was elected to in November 2017.
The stay puts the lawsuit on hold for now and the court may lift the stay and hear the lawsuit at a later date if the judge deems it appropriate.
Rotruck was removed from the Summerfield Town Council in April 2018 after the Guilford County Board of Elections ruled that Rotruck didn't live in Summerfield. Last October, the Town Council appointed Laughlin to fill the vacant seat despite the fact that Rotruck's appeal had not been heard by the NC Court of Appeals. In the suit being discussed this week in Guilford County Superior Court – known as a "quo warrento" lawsuit – Rotruck was attempting to reclaim the council seat while waiting for his appeal to be heard.
While Rotruck did not get the lawsuit he was asking for, he said he was pleased that Hall was attempting to get his appeal of the residency case expedited and it now looked like there was a good possibility his case could be heard very soon. Until now, the assumption has been that it could be as late as this fall before the Court of Appeals in Raleigh got around to hearing the case.
Rotruck said the stay allows the court to leave the lawsuit on the table since Rotruck may still need to proceed with this quo warrento suit if he wins his appeal.
"Even if I win, the Town of Summerfield may still refuse to seat me," Rotruck said.
He added that the town removed him without due process and it might continue to keep him off the council even if he wins the appeal.
Rotruck said he was pleased with the judge's approach to the case.
"I do think he was very fair and listened to what we had to say," he said. "He said this is very important to the public interest and that's why he wants to see the appeal heard soon."
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James on February 13, 2019 at 10:24 AM
where does he currently live?
Beth Kaplan on February 13, 2019 at 12:24 PM
He lives in Greensboro.