Also in their remarks today, Mike and Barb will refer to certain non-GAAP measures, including free cash flow, segment operating income, adjusted segment operating income, adjusted segment operating margin, adjusted operating income, adjusted operating margin, and adjusted diluted EPS in the fourth quarter and full-year 2011. Full-year 2011 adjusted figures exclude the $290 million non-cash goodwill impairment charge. Fourth quarter 2011 adjusted figures exclude a $10 million reversal of a portion of the impairment charge taken in the third quarter 2011. Reconciliations of these metrics to the comparable GAAP measures are included in the appendix of our earnings presentation that is posted on our website.
We plan to address the posted presentation slides during the call to supplement our comments. Please access our website at www.huntingtoningalls.com and click on the Investor Relations link to view the presentation as well as our earnings release.
With that, I’d like to turn the call over to Mike.
Mike PettersThanks, Andy. Good morning everyone and thanks for joining us on today’s call. I am pleased to report Huntington Ingalls Industries’ results for the fourth quarter and full-year 2011. Today we reported fourth quarter sales of $1.74 billion, flat over the same period last year, and full-year sales of $6.6 billion, down about 2% from last year. If you recall, in the third quarter we booked an estimated $300 million goodwill impairment charge that was driven by adverse equity market conditions. After completing the appropriate goodwill impairment test, the final impairment charge was $290 million. Because of the change in the goodwill impairment, reported fourth quarter EPS was $1.39 and reported full-year EPS was a loss of $1.93. Barb will have more detail on the goodwill impairment during her remarks. Now excluding the impact of the impairment, fourth quarter total operating margin was 6.6%, up from 6.0% last year, and diluted earnings per share was $1.19 for the quarter, down from $1.29 in 2010. For the full year, again excluding the impact of the impairment, operating margin was 6.1% compared with 3.7% last year, and diluted earnings per share was $3.97 for the year, up from $2.77 in 2010. Total backlog at the end of the quarter was $16.3 billion compared with $17.3 billion last year.
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