《洛克希德－馬?。↙OCKHEED MARTIN）2023年年度報告（英文版）（120頁）.pdf》由會員分享，可在線閱讀，更多相關《洛克希德－馬?。↙OCKHEED MARTIN）2023年年度報告（英文版）（120頁）.pdf（120頁珍藏版）》請在三個皮匠報告上搜索。

1、FINANCIAL HIGHLIGHTSNet Sales$67,571$65,984$67,044 Consolidated Operating Profit 8,507 8,348 9,123 Segment Operating Profit 7,389 7,467 7,664 Net Earnings 6,920 5,732 6,315 Diluted Earnings Per Common ShareNet Earnings 27.55 21.66 22.76 Cash Dividends Per Common Share 12.15 11.40 10.60 Average Dilut

2、ed Common Shares Outstanding 251 265 277 Cash and Cash Equivalents$1,442$2,547$3,604 Total Assets 52,456 52,880 50,873 Total Debt,net 17,459 15,547 11,676 Total Equity 6,835 9,266 10,959 Common Shares Outstanding at Year-End 240 254 271 Net Cash Provided by Operating Activities$7,920$7,802$9,221 Cap

3、ital Expenditures(1,691)(1,670)(1,522)Free Cash Flow$6,229$6,132$7,699 In millions,except per share data202320222021NOTE:For additional information regarding the amounts presented above,see the Form 10-K portion of this Annual Report.A reconciliation of Segment Operating Profit to Consolidated Opera

4、ting Profit is included on the page preceding the back cover of this Annual Report.2023 Annual ReportIFellow Shareholders:In 2023,Lockheed Martins 122,000 employees teamed together to further advance the boundaries of scientific discovery in support of our national defense and space exploration.We a

5、re the premier engineering and defense tech company across many disciplines from metallurgy to artificial intelligence,and the importance of our customers mission continued to be our driving force this year.Through our 21st Century Security vision,Lockheed Martin is leading the pursuit of harnessing

6、 digital technologies like 5G,AI,autonomy and distributed cloud computing for the national defense enterprise.By building strategic collaborations with industry leaders in these fields,both large and small,and adopting commercially developed technologies for defense applications,we can deliver more

7、advanced capabilities faster and with greater value.To ensure that our internal operations fully incorporate the benefits of advanced digital technologies,we also continue to forge ahead with our One Lockheed Martin Transformation(1LMX),which is modernizing all of our core business processes and sys

8、tems to increase our speed,agility and competitiveness.Together,21st Century Security and 1LMX are moving Lockheed Martin forward,and our progress is serving as a catalyst for broader transformation and innovation within the defense industrial base.In 2023,we returned to growth a year ahead of plan,

9、and we continued our disciplined and dynamic capital allocation strategy to maximize shareholder value:James D.Taiclet Chairman,President and Chief Executive Officer2023 Financial Results$6.2billion$67.6 billion$7.4 billion10.9percentFree Cash Flow*SalesSegment Operating Profit*Segment Operating Mar

10、gin*$6.9billionNet Earnings$27.55dollarsEarnings Per Share$160.6billionYear-End BacklogLockheed Martin CorporationIIProgressing Our Customers Missions With 21st Century InnovationOur companys strong performance reflects close collaboration with our customers,who recognize that geopolitical risk is e

11、levated,technology is advancing faster than at any time in history,and that it is essential to maintain an effective deterrent to armed conflict and the capability to win,if necessary.In 2023,Lockheed Martins technologies and solutions advanced key missions for the U.S.and our allies.Advancing Air S

12、uperiority|Lockheed Martin further cemented its role as the preeminent provider of air superiority and security in 2023.The F-35 continues to be the most advanced,survivable and connected fighter in the world.It is the clear aircraft of choice for our international allies.This past year,Canada annou

13、nced its purchase of 88 F-35s,we delivered the first four F-35s to Denmark,and Israel and South Korea announced they are each expanding their F-35 fleets by 25 additional aircraft.The F-16 similarly experienced global growth and interest.We delivered the first Greenville-built F-16 Block 70 aircraft

14、 to Bahrain,unveiled the first F-16 Block 70 aircraft for the Slovak Republic,and in partnership with Romania and the Netherlands,we opened a European F-16 training center in Romania.Were also continuing to lead groundbreaking aircraft innovation the X-59 experimental supersonic aircraft,built by Sk

15、unk Works and NASA,was selected as one of TIMEs“Top Inventions of 2023”in the Transportation category.Modernizing Air and Missile Defense and Precision Strike Capabilities|International demand for our integrated air and missile defense systems remains strong.This year,Switzerland and Romania each si

16、gned Letters of Offer and Acceptance for PAC-3 Missile Segment Enhancement,marking 15 partner nations for the program.We also delivered PAC-3 MSE to Poland,further strengthening NATO deterrence.Domestically,we delivered the 800th Terminal High Altitude Area Defense interceptor to the U.S.government.

17、And to advance the U.S.Armys modernization efforts for precision strike,we delivered the first Precision Strike Missile and conducted System Qualification Tests for Extended-Range Guided Multiple Launch Rocket System,advancing the rocket toward operational testing.Lockheed Martin was also awarded co

18、ntracts for Conventional Prompt Strike,the nations first surface-launched,sea-based hypersonic strike capability,and for MK21A,a new reentry vehicle.Enabling Joint All-Domain Operations|As part of the U.S.Indo-Pacific Commands Joint Fires Network at Northern Edge 2023,we demonstrated true joint forc

19、e synchronization at scale by successfully integrating third-party platforms and aircraft,and performing command and control functions across all services,levels of operation and multiple domains.Internationally,the Australian Department of Defence selected Lockheed Martin for AIR6500 Phase 1.By con

20、necting Australian systems and platforms that operate across space,air,sea,land and cyber,the AIR6500 project series will set the blueprint for future military operations across the globe.Our teams 2023 accomplishmentsRealizing Combined Joint All-Domain Command&Control2023 Annual ReportIIIPioneering

21、 Scientific Discovery in Space|We continued to develop breakthrough technologies for human advancement and technological innovation in space.The Lockheed Martin-built OSIRIS-Rex return capsule successfully landed after a seven-year mission,during which the spacecraft tagged up with asteroid Bennu.OS

22、IRIS-REx is the first U.S.mission to return samples from an asteroid to Earth and the largest samples from anywhere beyond the Moon.Reaching New Heights in 2024Turning to 2024,we continue to focus on advancing and broadening the defense industry through 21st Century Security,while also increasing ca

23、pacity in our production lines to meet sustained,increased demand for our time-tested programs of record.1LMX will be key to this effort as we look to adopt advanced manufacturing practices,digital tools and other cutting-edge technologies to streamline our internal operations and realize efficienci

24、es.As a result,we anticipate the return to growth we experienced in 2023 to continue in 2024 and the years ahead.By keeping our programs of record sold,winning new business,and capitalizing on emerging opportunities,we have a strategy in place to responsibly grow the business and continue delivering

25、 shareholder value.Our growth would not be possible,however,without your continued support as our shareholders and without the remarkable work and dedication of our Lockheed Martin team thank you.Armed conflict happening around the world serves as a stark reminder of the value of Lockheed Martins so

26、lutions.We look forward to continuing to partner with the U.S.and our allies to enable a more safe and secure world in 2024 and beyond.James D.TaicletChairman,President and Chief Executive Officer*This letter includes references to free cash flow,segment operating profit and segment operating margin

27、,which are non-GAAP financial measures.For reconciliations between our non-GAAP measures and the nearest GAAP measures,please refer to the page preceding the back cover of this Annual Report.As non-GAAP financial measures are not intended to be considered in isolation or as a substitute for GAAP fin

28、ancial measures,you should carefully read the Form 10-K included in this Annual Report,which includes our consolidated financial statements prepared in accordance with GAAP.Additionally,this letter includes statements that,to the extent they are not recitations of historical fact,constitute forward-

29、looking statements within the meaning of the federal securities laws,and are based on Lockheed Martins current expectations and assumptions.For a discussion identifying important factors that could cause actual results to differ materially from those anticipated in the forward-looking statements,see

30、 the companys filings with the Securities and Exchange Commission,including“Managements Discussion and Analysis of Financial Condition and Results of Operations”and“Risk Factors”in the Form 10-K portion of this Annual Report.Our work to come in 2024Lockheed Martin CorporationIVBOARD OF DIRECTORSEXEC

31、UTIVE OFFICERSCORPORATE DIRECTORYAs of March 1,2024James D.TaicletChairman,President and Chief Executive OfficerLockheed Martin Corporation Daniel F.AkersonRetired Chairman andChief Executive OfficerGeneral Motors CompanyDavid B.BurrittPresident and Chief Executive OfficerUnited States Steel Corpora

32、tionBruce A.CarlsonRetired General United States Air ForceJohn M.DonovanRetired Chief Executive OfficerAT&T Communications,LLCJoseph F.Dunford,Jr.Senior Managing Director and Partner Liberty Strategic Capital and Retired General United States Marine CorpsJames O.Ellis,Jr.Retired President andChief E

33、xecutive OfficerInstitute of Nuclear PowerOperationsThomas J.FalkRetired Chairman and Chief Executive OfficerKimberly-Clark CorporationIlene S.GordonRetired Chairman and Chief Executive OfficerIngredion IncorporatedVicki A.HollubPresident and Chief Executive OfficerOccidental Petroleum CorporationJe

34、h C.JohnsonPartner Paul,Weiss,Rifkind,Wharton&Garrison LLP andFormer Secretary of Homeland SecurityDebra L.Reed-KlagesRetired Chairman,President and Chief Executive OfficerSempra EnergyPatricia E.YarringtonRetired Chief Financial OfficerChevron CorporationJames D.TaicletChairman,President and Chief

35、Executive Officer Timothy S.CahillPresident,Missiles and Fire ControlStephanie C.HillPresident,Rotary and Mission SystemsMaryanne R.LavanSenior Vice President,General Counsel andCorporate Secretary Robert M.LightfootPresident,Space Jesus MalaveChief Financial OfficerH.Edward PaulVice President and C

36、ontrollerMaria A.RicciardoneVice President,Treasurer and Investor Relations Frank A.St.John Chief Operating Officer Gregory M.Ulmer President,AeronauticsUNITED STATESSECURITIES AND EXCHANGE COMMISSIONWashington,D.C.20549FORM 10-K(Mark One)ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d)OF THE SECURITIE

37、S EXCHANGE ACT OF 1934For the fiscal year ended December 31,2023 or TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)OF THE SECURITIES EXCHANGE ACT OF 1934For the transition period from _ to _Commission file number 1-11437LOCKHEED MARTIN CORPORATION(Exact name of registrant as specified in its chart

38、er)Maryland52-1893632(State or other jurisdiction ofincorporation or organization)(I.R.S.Employer Identification No.)6801 Rockledge Drive,Bethesda,Maryland20817(Address of principal executive offices)(Zip Code)(301)897-6000(Registrants telephone number,including area code)Securities registered pursu

39、ant to Section 12(b)of the Act:Title of each classTrading Symbol(s)Name of each exchange on which registeredCommon Stock,$1 par valueLMTNew York Stock ExchangeSecurities registered pursuant to Section 12(g)of the Act:NoneIndicate by check mark if the registrant is a well-known seasoned issuer,as def

40、ined in Rule 405 of the Securities Act.Yes No Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d)of the Act.Yes No Indicate by check mark whether the registrant(1)has filed all reports required to be filed by Section 13 or 15(d)of the Secu

41、rities Exchange Act of 1934 during the preceding 12 months(or for such shorter period that the registrant was required to file such reports),and(2)has been subject to such filing requirements for the past 90 days.Yes No Indicate by check mark whether the registrant has submitted electronically every

42、 Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T(232.405 of this chapter)during the preceding 12 months(or for such shorter period that the registrant was required to submit such files).Yes No Indicate by check mark whether the registrant is a large accelerated

43、filer,an accelerated filer,a non-accelerated filer,a smaller reporting company,or an emerging growth company.See the definitions of“large accelerated filer,”“accelerated filer,”“smaller reporting company,”and“emerging growth company”in Rule 12b-2 of the Exchange Act.Large accelerated filer Accelerat

44、ed filer Nonaccelerated filer Smaller reporting company Emerging growth company If an emerging growth company,indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Secti

45、on 13(a)of the Exchange Act.Indicate by check mark whether the registrant has filed a report on and attestation to its managements assessment of the effectiveness of its internal control over financial reporting under Section 404(b)of the Sarbanes-Oxley Act(15 U.S.C.7262(b)by the registered public a

46、ccounting firm that prepared or issued its audit report.If securities are registered pursuant to Section 12(b)of the Act,indicate by check mark whether the financial statements of the registrant included in the filing reflect the correction of an error to previously issued financial statements.Indic

47、ate by check mark whether any of those error corrections are restatements that required a recovery analysis of incentive-based compensation received by any of the registrants executive officers during the relevant recovery period pursuant to 240.10D-1(b).Indicate by check mark whether the registrant

48、 is a shell company(as defined in Rule 12b-2 of the Exchange Act).Yes No The aggregate market value of voting and non-voting common stock held by non-affiliates of the registrant computed by reference to the last sales price of such stock,as of the last business day of the registrants most recently

49、completed second fiscal quarter,which was June 23,2023,was approximately$115.2 billion.There were 241,643,304 shares of our common stock,$1 par value per share,outstanding as of January 19,2024.DOCUMENTS INCORPORATED BY REFERENCEPortions of Lockheed Martin Corporations 2024 Definitive Proxy Statemen

50、t are incorporated by reference into Part III of this Form 10-K.The 2024Definitive Proxy Statement will be filed with the Securities and Exchange Commission within 120 days after the end of the fiscal year to which this reportrelates.Lockheed Martin CorporationForm 10-KFor the Year Ended December 31

51、,2023Table of ContentsPART IPage ITEM 1.Business.3ITEM 1A.Risk Factors.10ITEM 1B.Unresolved Staff Comments.22ITEM 1C.Cybersecurity.22ITEM 2.Properties.24ITEM 3.Legal Proceedings.24ITEM 4.Mine Safety Disclosures.24ITEM 4(a).Information about our Executive Officers.25PART IIITEM 5.Market for Registran

52、ts Common Equity,Related Stockholder Matters and Issuer Purchases of Equity Securities.27ITEM 6.Reserved.28ITEM 7.Managements Discussion and Analysis of Financial Condition and Results of Operations.29ITEM 7A.Quantitative and Qualitative Disclosures About Market Risk.52ITEM 8.Financial Statements an

53、d Supplementary Data.53ITEM 9.Changes in and Disagreements with Accountants on Accounting and Financial Disclosure.97ITEM 9A.Controls and Procedures.97ITEM 9B.Other Information.99ITEM 9C.Disclosure Regarding Foreign Jurisdictions that Prevent Inspections.99PART IIIITEM 10.Directors,Executive Officer

54、s and Corporate Governance.99ITEM 11.Executive Compensation.99ITEM 12.Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters.100ITEM 13.Certain Relationships and Related Transactions,and Director Independence.100ITEM 14.Principal Accounting Fees and Services.1

55、00PART IVITEM 15.Exhibits and Financial Statement Schedules.101ITEM 16.Form 10-K Summary.104SIGNATURES.105PART IITEM 1.BusinessGeneralWe are a global security and aerospace company principally engaged in the research,design,development,manufacture,integration and sustainment of advanced technology s

56、ystems,products and services.We also provide a broad range of management,engineering,technical,scientific,logistics,system integration and cybersecurity services.Our main areas of focus are in defense,space,intelligence,homeland security and information technology,including cybersecurity.We serve bo

57、th U.S.and international customers with products and services that have defense,civil and commercial applications,with our principal customers being agencies of the U.S.Government.We operate in a complex and evolving global security environment.Our strategy consists of the design and development of

58、platforms and systems that meet the current needs of our customers and the future requirements of 21st Century Security.Our vision for 21st Century Security is to accelerate the adoption of advanced networking and leading-edge technologies into our national defense enterprise,while enhancing the per

59、formance and value of our platforms and products for our customers.The aim of 21st Century Security is to integrate new and existing systems across all domains with advanced,open-architecture networking and operational technologies to make defense forces more agile,adaptive and unpredictable.Twenty-

60、first Century Security is an overarching vision that guides our investment and strategy.We are also focused on four elements for potential growth in the near to mid-term:current programs of record,classified programs,hypersonics and new awards.We have multiple programs of record from each business s

61、egment that are entering growth stages,including the F-35 sustainment activity(Aeronautics);increased Patriot Advanced Capability-3(PAC-3)production rates and increased demand for High Mobility Artillery Rocket System(HIMARS)and Guided Multiple Launch Rocket Systems(GMLRS)(Missiles and Fire Control)

62、;radar surveillance systems and CH-53K King Stallion heavy lift helicopter(Rotary and Mission Systems);and the modernization and enhancements to the Trident II D5 Fleet Ballistic Missile(FBM)(Space).We are engaged in significant classified development programs and pending successful achievement of t

63、he objectives within those programs,we expect to begin the transition from development to production over the next few years.We are currently performing on multiple hypersonics programs and following the successful completion of ongoing testing and evaluation activity,multiple programs are expected

64、to enter early production phases through 2026.Finally,we are always in pursuit of new program awards to develop future platforms that enable us to continue to place security capability into the market and expand our global reach.Key to enabling success of our strategy is developing differentiating t

65、echnologies,forging strategic partnerships,including with commercial companies,executing on our multi-year business transformation initiative to enhance our digital infrastructure and increase efficiencies and collaboration throughout our business and maintaining fiscal discipline.Underpinning our a

66、bility to execute our strategy is our talent and culture.We invest substantially in our people to ensure that our workforce has the technical skills necessary to succeed,and we expect to continue to invest internally in innovative technologies that address rapidly evolving mission requirements for o

67、ur customers.We also will continue to evaluate our portfolio and will make strategic acquisitions or divestitures,as appropriate,while deepening our connection to commercial industry through cooperative partnerships,joint ventures and equity investments.Business SegmentsWe operate in four business s

68、egments:Aeronautics,Missiles and Fire Control(MFC),Rotary and Mission Systems(RMS)and Space.We organize our business segments based on the nature of the products and services offered.AeronauticsAeronautics is engaged in the research,design,development,manufacture,integration,sustainment,support and

69、upgrade of advanced military aircraft,including combat and air mobility aircraft,unmanned air vehicles and related technologies.Aeronautics also has contracts with the U.S.Government for various classified programs.Aeronautics major programs include:F-35 Lightning II-international multi-role,multi-v

70、ariant,fifth generation stealth fighter;C-130 Hercules-international tactical airlifter;F-16 Fighting Falcon-combat-proven,international multi-role fighter;andF-22 Raptor-air dominance and multi-role fifth generation stealth fighter.The F-35 program is our largest program,generating 26%of our total

71、consolidated net sales,as well as 64%of Aeronautics net sales in 2023.The F-35 program consists of multiple development,production and sustainment contracts.Development is focused on modernization of F-35s capability and addressing emerging threats.Sustainment provides logistics 3and training suppor

72、t for the aircraft delivered to F-35 customers.For additional information on the F-35 program,see“Status of the F-35 Program”in Managements Discussion and Analysis of Financial Condition and Results of Operations.See also Item 1A-Risk Factors for a discussion of risks related to the F-35 program.In

73、addition to the aircraft programs above,Aeronautics is involved in advanced development programs incorporating innovative design and rapid prototype applications.Our Advanced Development Programs(ADP)organization,also known as Skunk Works,is focused on future systems,including unmanned and manned ae

74、rial systems and next generation capabilities for air dominance,hypersonics,intelligence,surveillance,reconnaissance,situational awareness and air mobility.We continue to explore technology advancement and insertion into our existing aircraft.We also are involved in numerous network-enabled activiti

75、es that allow separate systems to work together to increase effectiveness and we continue to invest in new technologies to maintain and enhance competitiveness in military aircraft design,development and production.Missiles and Fire ControlMFC provides air and missile defense systems;tactical missil

76、es and air-to-ground precision strike weapon systems;logistics;fire control systems;mission operations support,readiness,engineering support and integration services;manned and unmanned ground vehicles;and energy management solutions.MFC also has contracts with the U.S.Government for various classif

77、ied programs.MFCs major programs include:The Patriot Advanced Capability-3(PAC-3)and Terminal High Altitude Area Defense(THAAD)air and missile defense programs.PAC-3 is an advanced defensive missile for the U.S.Army and international customers designed to intercept and eliminate incoming airborne th

78、reats using kinetic energy.THAAD is a transportable defensive missile system for the U.S.Government and international customers designed to engage targets both within and outside of the Earths atmosphere.The Multiple Launch Rocket System(MLRS),Precision Strike Missile(PrSM),Joint Air-to-Surface Stan

79、doff Missile(JASSM),Long Range Anti-Ship Missile(LRASM),and Hellfire tactical and strike missile programs.MLRS is a highly mobile,automatic system that fires surface-to-surface rockets and missiles from the M270 and High Mobility Artillery Rocket System(HIMARS)platforms produced for the U.S.Army and

80、 international customers and PrSM is the next generation of precision strike surface-to-surface weapon systems that is compatible with the MLRS family of launchers in support of the U.S.Army.JASSM is an air-to-ground missile launched from fixed-wing aircraft,which is produced for the U.S.Air Force a

81、nd international customers.LRASM is a precision guided anti-ship missile derived from JASSM and designed to interdict a variety of surface threats at very long range and produced for the U.S.Air Force,U.S.Navy,and international customers.Hellfire is an air-to-ground missile used on rotary and fixed-

82、wing aircraft,which is produced for the U.S.Army,Navy,Marine Corps and international customers.The Apache fire control system,Sniper Advanced Targeting Pod(SNIPER)and Infrared Search and Track(IRST21)sensors and global sustainment programs.The Apache fire control system provides weapons-targeting ca

83、pability for the Apache helicopter for the U.S.Army and international customers.SNIPER is a targeting system for several fixed-wing aircraft and is produced for the U.S.Air Force and international customers.IRST21 provides long-range infrared detection and tracking of airborne threats and is used on

84、 several fixed-wing aircraft.IRST21 is produced for the U.S.Air Force,the U.S.Navy,the National Guard and international customers.The Special Operations Forces Global Logistics Support Services(SOF GLSS)program,which provides logistics support services to the special operations forces of the U.S.mil

85、itary.Hypersonics programs,which include several programs with the U.S.Air Force and U.S.Army to design,develop and build hypersonic strike weapons.The Javelin program,which is a one-person portable and platform-employable anti-tank and multi-target precision weapon system.Javelin was developed and

86、is currently produced for the U.S.Army and U.S.Marine Corps by a joint venture between Lockheed Martin and RTX Corporation.Rotary and Mission SystemsRMS designs,manufactures,services and supports various military and commercial helicopters,surface ships,sea and land-based missile defense systems,rad

87、ar systems,laser systems,sea and air-based mission and combat systems,command and control mission solutions,cyber solutions,and simulation and training solutions.RMS also has contracts with the U.S.Government for various classified programs.RMS major programs include:Sikorsky helicopter programs suc

88、h as those related to the BLACK HAWK,Seahawk and CH-53K King Stallion heavy lift helicopters which are in service with U.S.and foreign governments,the Combat Rescue Helicopter(CRH)utilized by the U.S.Air Force,and the VH-92A helicopter for the U.S.Marine One transport mission.Integrated warfare syst

89、ems and sensors(IWSS)programs such as Aegis Combat System(Aegis)programs that serve as an air and missile defense system for the U.S.Navy and international customers and is also a sea and land-based element of the U.S.missile defense system,and the Littoral Combat Ship(LCS)and Multi-Mission Surface

90、Combatant(MMSC)4programs to provide surface combatant ships for the U.S.Navy and international customers that are designed to operate in shallow waters and the open ocean.Command,control,communications,computers,cyber,combat systems,intelligence,surveillance,and reconnaissance(C6ISR)programs such as

91、 the Command,Control,Battle Management and Communications(C2BMC)program to provide an air operations center for the Ballistic Missile Defense System for the U.S.Government,undersea combat systems programs largely serving the U.S.Navy,and Australias Joint Air Battle Management System(AIR 6500).Traini

92、ng and logistics solutions(TLS)programs such as those providing sustainment services and programs that provide simulators and associated training to U.S.military and foreign government customers.SpaceSpace is engaged in the research and design,development,engineering and production of satellites,spa

93、ce transportation systems,and strategic,advanced strike,and defensive systems.Space provides network-enabled situational awareness and integrates complex space and ground global systems to help our customers gather,analyze and securely distribute critical intelligence data.Space is also responsible

94、for various classified systems and services in support of vital national security systems.Spaces major programs include:The Next Generation Overhead Persistent Infrared(Next Gen OPIR)system,which provides the U.S.Space Force with enhanced worldwide missile warning capabilities.The Trident II D5 Flee

95、t Ballistic Missile(FBM),a program with the U.S.Navy for the only submarine-launched intercontinental ballistic missile currently in production in the U.S.The Orion Multi-Purpose Crew Vehicle(Orion),a spacecraft for NASA utilizing new technology for human exploration missions beyond low earth orbit.

96、Next Generation Interceptor(NGI),a program with the Missile Defense Agency(MDA)utilizing next generation propulsion and sensors to provide homeland missile defense.Global Positioning System(GPS)III,a program to modernize the GPS satellite system for the U.S.Space Force.Hypersonics programs,which inc

97、lude several programs with the U.S.Army and U.S.Navy to design,develop and build hypersonic strike weapons.The Transport Layer program,a small satellite program designed to support resilient space communications for the Space Development Agency.Intellectual PropertyWe routinely apply for and own a s

98、ubstantial number of U.S.and foreign patents and trademarks related to the products and services we provide.We also develop and own other intellectual property,including copyrights,trade secrets and research,development and engineering know-how,that contributes significantly to our business.In addit

99、ion,we license intellectual property to and from third parties.The Federal Acquisition Regulation(FAR)and Defense Federal Acquisition Regulation Supplement(DFARS)provide the U.S.Government certain rights in intellectual property,including patents,developed by us and our subcontractors and suppliers

100、in performance of government contracts or with government funding.The U.S.Government may use or authorize others,including competitors,to use such intellectual property.See the discussion of matters related to our intellectual property in Item 1A-Risk Factors.Non-U.S.governments also may have certai

101、n rights in patents and other intellectual property developed in performance of our contracts for them.Although our intellectual property rights in the aggregate are important to the operation of our business,we do not believe that any existing patent,license or other intellectual property right is

102、of such importance that its loss or termination would have a material adverse effect on our business taken as a whole.Research and DevelopmentWe conduct research and development(R&D)activities using our own funds(referred to as company-funded R&D or independent research and development(IR&D)and unde

103、r contractual arrangements with our customers(referred to as customer-funded R&D)to enhance existing products and services and to develop future technologies.R&D costs include basic research,applied research,concept formulation studies,design,development,and related test activities.See“Note 1 Organi

104、zation and Significant Accounting Policies”(under the caption“Research and development and similar costs”)included in our Notes to Consolidated Financial Statements.Raw Materials,Suppliers and SeasonalitySome of our products require relatively scarce raw materials,such as rare earth minerals.Other i

105、mportant materials and components,on which certain of our products rely,include aluminum,titanium,carbon fiber and advanced microelectronics,such as semiconductors.We rely on other companies to provide materials,components and products and to perform a portion of 5the services that are provided to o

106、ur customers under the terms of most of our contracts.Although long-term agreements have historically helped enable a continued supply of these materials,the lingering effects of the COVID-19 pandemic,supply chain challenges,supplier disputes,regulatory restrictions,and inflationary pressures have c

107、aused certain parts shortages,extended lead times and pricing escalations affecting certain sources of supply.We continue working to minimize the impact of supply chain challenges on us but many of the challenges are industry wide or caused by geopolitical events and general economic conditions that

108、 are outside of our control.These supplier disruptions have resulted in delays and increased costs and have adversely affected our program performance and operating results.These dynamics are expected to continue in 2024.For more information on the risks related to our suppliers and raw materials,se

109、e Item 1A-Risk Factors.No material portion of our business is considered to be seasonal.Various factors,however,can affect the distribution of our sales between accounting periods,including the timing of government awards,the availability of government funding,product deliveries and customer accepta

110、nce.Human Capital ResourcesDue to the specialized nature of our business,our performance depends on identifying,attracting,developing,motivating and retaining a highly skilled workforce with the requisite skills and,in many cases,security clearances,in multiple areas,including engineering,science,ma

111、nufacturing,information technology,cybersecurity,business development and strategy and management.Our human capital management strategy,which we refer to as our people strategy,is tightly aligned with our business needs and technology strategy.During 2023,our human capital efforts were focused on co

112、ntinuing to accelerate the transformation of our technology for workforce management through investments in upgraded systems and processes.We also focused on increasing our ability to meet the quickly changing needs of the business,all while maintaining a respectful,supportive and inclusive working

113、environment and culture.We use a variety of human capital measures in managing our business,including:workforce demographics and metrics in relation to representation,attrition,hiring,promotions and leadership;and talent management metrics,including retention rates of top talent.Workforce Demographi

114、csAs of December 31,2023,we had a highly skilled workforce made up of approximately 122,000 employees,including approximately 65,000 engineers,scientists and information technology professionals.As of December 31,2023,approximately 93%of our workforce was located in the U.S.and approximately 19%of o

115、ur employees were covered by collective bargaining agreements with various unions.A number of our existing collective bargaining agreements expire in any given year.Historically,we have been successful in renegotiating expiring agreements without any material disruption of operating activities,and m

116、anagement considers employee and union relations to be good.This has continued to be the case in 2023.Diversity and Inclusion Diversity and inclusion is a business imperative for us,as we believe that it is key to our future success.We have focused our diversity and inclusion initiatives on employee

117、 recruitment,including active engagement and outreach with minority-serving institutions,employee training and development,such as efforts focused on expanding the diverse talent pipeline,and employee engagement,including through participation in our Business Resource Groups.Our Business Resource Gr

118、oups are voluntary,employee-led groups that are open to all employees while being aligned to demographic categories that we annually report on to the U.S.Government,including race/ethnicity,gender,disability and veteran status.The categories have been expanded to gain a deeper understanding of our w

119、orkforce to include military service,sexual-orientation and gender identity which are not part of our annual government submission.The Business Resource Groups foster a diverse and inclusive workplace aligned with our organizational mission,values,goals and business practices and drive awareness and

120、 change within our organization.Through these and other focused efforts,including workforce availability,we have improved the diversity of our overall U.S.workforce and within leadership positions,specifically in the representation of women,people of color and people with disabilities.Additionally,v

121、eteran representation in our workforce remains outstanding,at almost four times the current annual national percentage of veterans in the civilian workforce.Employee Profile(as of December 31,2023):Women(a)People of Color(a)Veterans(a)People with Disabilities(a)Overall23%32%21%12%Executives(b)25%17%

122、21%13%(a)Based on employees who self-identify.Includes only U.S.employees and expatriates except for data relating to women,which also includes local country nationals.Excludes casual workers,interns/co-ops and employees of certain subsidiaries and joint ventures.(b)Executive is defined as director-

123、level(one level below vice president)or higher.6Talent Acquisition,Retention and DevelopmentWe strive to hire,develop and retain the top talent in the industry.During 2023,we hired nearly 15,000 employees.An integral part of our people strategy is early career hiring through college and intern pipel

124、ines,particularly in technical fields and critical skills areas.During the 2022-2023 academic year,we hired a record 6,000 college hires and interns.In addition to efforts focused on recruitment,we also monitor employee attrition across a broad array of categories and segments of the population,incl

125、uding with respect to diversity and top talent.Critical to attracting and retaining top talent is employee satisfaction,and we regularly conduct employee engagement surveys to gauge employee satisfaction and to understand the effectiveness of our people strategy and assess employees intent to stay.W

126、e attract and reward our employees by providing market competitive compensation and benefits,including incentives and recognition plans that extend to non-represented employees of all levels in our organization and encourage excellence through our pay-for-performance philosophy.We have a hybrid work

127、force model that encourages flexible working arrangements for employees and teams who can meet our customer commitments remotely,which has helped recruit and retain talent.In addition,we invest in the development of our employees through training,apprenticeship programs,security clearance sponsorshi

128、p,leadership development plans and offering tuition assistance programs for continuing education or industry certifications.We believe this employee development makes us more competitive and also assists with leadership succession planning throughout the corporation.Employee Safety and HealthThrough

129、 our safety and health program we seek to optimize our operations with targeted safety,health and wellness opportunities designed to provide safe work conditions,and a healthy work environment,promote workforce resiliency and enhance business value.As part of this program,we track employee health an

130、d safety measures,including quarterly and yearly targets related to the number of injury and illness incidents that occur at work,those incidents that result in days lost,and the number of days lost due to workplace injuries and illness.For information on the risks related to our human capital resou

131、rces,see Item 1A-Risk Factors.CompetitionWe compete with many different companies in the defense and aerospace industry.The Boeing Company,General Dynamics,L3Harris Technologies,Northrop Grumman,and RTX Corporation are some of our primary competitors.Key characteristics of our industry include long

132、operating cycles and intense competition,which is evident through the number of competitors bidding on program opportunities and the existence of bid protests(competitor protests of U.S.Government procurement awards).We often collaborate with our competitors through teaming arrangements in efforts t

133、o provide our customers with the best mix of capabilities to address specific requirements.Additionally,a company competing to be a prime contractor may,upon ultimate award of the contract to another competitor,serve as a subcontractor to the ultimate prime contracting company.It is not unusual to c

134、ompete for a contract award with a peer company and,simultaneously,perform as a supplier to or a customer of that same competitor on other contracts.Our broad portfolio of products and services competes domestically and internationally against products and services of the companies listed above,nume

135、rous smaller competitors and startups,and increasingly,non-traditional and non-U.S.defense contractors.In some areas of our business,customer requirements are changing to encourage or facilitate expanded competition.Principal factors of competition include:the technical excellence,reliability,safety

136、 and cost competitiveness of our products and services to the customer;technical and management capability;the ability to innovate and develop new products and technologies that improve mission performance and adapt to dynamic threats;successful program execution and on-time delivery of complex,inte

137、grated systems;the reputation and customer confidence derived from past performance;our demonstrated ability to execute and perform against contract requirements and successfully manage customer relationships;and our global footprint and accessibility to customers.The competition for international s

138、ales for most of our products and services is subject to U.S.Government stipulations(e.g.,export restrictions,market access,technology transfer,industrial cooperation and contracting practices).We compete against U.S.and non-U.S.companies(or teams)for contract awards by international governments.Int

139、ernational competitions are also subject to different laws or contracting practices of international governments,which affects how we structure our bid for the procurement.In many international procurements,the purchasing governments relationship with the U.S.and its industrial cooperation programs

140、designed to enhance local industry are important factors in determining the outcome of a competition.It is common for international customers to require contractors to comply with their industrial cooperation regulations,sometimes referred to as offset requirements,and we have entered into foreign o

141、ffset agreements as part of securing 7some international business.For more information concerning our international business,see“International Business”in Managements Discussion and Analysis of Financial Condition and Results of Operations and Item 1A-Risk Factors.Technological advances in such area

142、s as additive manufacturing,data analytics,digital engineering,artificial intelligence,advanced materials,autonomy and robotics,and new business models such as commercial access to space,are enabling new factors of competition for both traditional and non-traditional competitors.Regulatory MattersOu

143、r business is heavily regulated.We contract with numerous U.S.Government agencies and entities,principally all branches of the U.S.military and NASA.We also contract with similar government authorities in other countries,either under the foreign military sales(FMS)program,contracted through the U.S.

144、Government,or as a direct sale with the foreign government authority,which regulates these sales in a manner similar to the U.S.Government.Government ContractsWe must comply with,and are affected by,laws and regulations relating to the formation,administration and performance of U.S.Government and o

145、ther governments contracts,including foreign governments.These laws and regulations,among other things:require certification and disclosure of all cost or pricing data in connection with certain types of contract negotiations;impose specific and unique cost accounting practices that may differ from

146、U.S.generally accepted accounting principles(GAAP);impose acquisition regulations,which may change or be replaced over time,that define which costs can be charged to the U.S.Government,how and when costs can be charged,and otherwise govern our right to reimbursement under certain U.S.Government and

147、foreign contracts;require specific security controls to protect U.S.Government controlled unclassified information and that our suppliers that have access to this type of information comply with cyber security regulations;restrict the use and dissemination of information classified for national secu

148、rity purposes and the export of certain products,services and technical data;prohibit the acquisition from or use by contractors of materials,products or services procured from certain countries or entities located outside the United States(e.g.,the prohibition on the acquisition of sensitive materi

149、als from non-allied foreign nations and prohibition on the acquisition and use of certain telecommunications and video surveillance services or equipment);andrequire the review and approval of contractor business systems,including accounting systems,estimating systems,earned value management systems

150、 for managing cost and schedule performance on certain complex programs,purchasing systems,material management and accounting systems for planning,controlling and accounting for the acquisition,use,issuing and disposition of material,and property management systems.The U.S.Government and in limited

151、cases certain other governments may terminate any of our government contracts and subcontracts either at their convenience or for default based on our performance.If a contract is terminated for convenience,we generally are protected by provisions covering reimbursement for costs incurred on the con

152、tract and profit on those costs.If a contract is terminated for default,we generally are entitled to payment for our work that has been accepted by the U.S.Government or other governments;however,the U.S.Government and other governments could make claims to reduce our recovery or recoup its procurem

153、ent costs and could assess other special penalties.For more information regarding the U.S.Governments and other governments right to terminate our contracts and the risks of doing work internationally,see Item 1A-Risk Factors.For more information regarding government contracting laws and regulations

154、,see Item 1A-Risk Factors as well as“Critical Accounting Policies-Contract Accounting/Sales Recognition”in Managements Discussion and Analysis of Financial Condition and Results of Operations.Additionally,our programs for the U.S.Government often operate for periods of time under undefinitized contr

155、act actions(UCAs),which means that we begin performing our obligations before the terms,specifications or price are finally agreed to between the parties.Although in most cases we historically have reached mutual agreement to definitize our UCAs,the U.S.Government has the ability to unilaterally def

156、initize contracts and has done so in the past.Absent a successful appeal of such action,the unilateral definitization of the contract obligates us to perform under terms and conditions imposed by the U.S.Government.The U.S.Governments power to unilaterally definitize a contract can affect our abilit

157、y to negotiate mutually agreeable contract terms and,if a contract is unilaterally imposed upon us,it may negatively affect our expected profit and cash flows on a program or impose burdensome terms.8Classified ContractsA portion of our business is classified by the U.S.Government and cannot be spec

158、ifically described.The operating results of classified contracts are included in our consolidated financial statements.The business risks and capital requirements associated with classified contracts historically have not differed materially from those of our other U.S.Government contracts.However,u

159、nder certain classified fixed price development and production contracts,we are unable to insure risk of loss to government property because of the classified nature of the contracts and the inability to disclose classified information necessary for underwriting and claims to commercial insurers.Our

160、 internal controls addressing the financial reporting of classified contracts are consistent with our internal controls for our non-classified contracts.Commercial AircraftOur commercial aircraft products are required to comply with U.S.and international regulations governing production and quality

161、systems,airworthiness and installation approvals,repair procedures and continuing operational safety.EnvironmentalOur operations are subject to and affected by various federal,state,local and foreign environmental protection laws and regulations regarding the discharge of materials into the environm

162、ent or otherwise regulating the protection of the environment.As a result of these environmental protection laws,we are involved in environmental remediation at some of our current and former facilities and at third-party-owned sites where we have been designated a potentially responsible party as a

163、 result of our prior activities and those of our predecessor companies.Although the extent of our financial exposure cannot in all cases be reasonably estimated,the costs of environmental compliance have not had,and we do not expect that these costs will have,a material adverse effect on our earning

164、s,financial position and cash flow,primarily because substantially all of our environmental costs are allowable in establishing the price of our products and services under our contracts with the U.S.Government.For information regarding these matters,including current estimates of the amounts that w

165、e believe are required for remediation or cleanup to the extent that they are probable and estimable,see“Critical Accounting Policies-Environmental Matters”in Managements Discussion and Analysis of Financial Condition and Results of Operations and“Note 14 Legal Proceedings,Commitments and Contingenc

166、ies”included in our Notes to Consolidated Financial Statements.See also the discussion of environmental matters in Item 1A-Risk Factors.Climate and Sustainability Reporting and Regulation There is an increasing global regulatory focus on greenhouse gas(GHG)emissions and their potential impacts relat

167、ing to climate change.Various jurisdictions around the world in which we operate,including the U.S.,the European Union,the United Kingdom,Australia and certain U.S.States,have adopted or proposed laws related to climate and sustainability reporting.These and future laws,regulations or policies in re

168、sponse to concerns over GHG emissions such as carbon taxes,mandatory reporting and disclosure obligations,including environmental requirements for certain federal contractors and subcontractors and the SECs proposed climate-related disclosure rule,and changes in procurement policies,including the us

169、e of environmental goals in proposal evaluation,could significantly increase our operational and compliance burdens and costs.We monitor developments in climate-change related regulation for their potential effect on us and also have a comprehensive sustainability program that seeks to mitigate our

170、impact on the environment,including targets to reduce our GHG emissions.For more information on the risk of climate-change related regulation,see Item 1A-Risk Factors.Other Applicable RegulationsOur businesses and operations are subject to both U.S.and non-U.S.government laws,regulations and procure

171、ment policies and practices,including regulations relating to product testing,import-export controls,technology transfer restrictions,foreign investment,tariffs,taxation,repatriation of earnings,sanctions,exchange controls,the Foreign Corrupt Practices Act and other anti-corruption laws and anti-boy

172、cott provisions of the U.S.Export Control Reform Act of 2018.Available InformationWe are a Maryland corporation formed in 1995 by combining the businesses of Lockheed Corporation and Martin Marietta Corporation.Our principal executive offices are located at 6801 Rockledge Drive,Bethesda,Maryland 208

173、17.Our telephone number is(301)897-6000 and our website address is .We make our website content available for information purposes only.It should not be relied upon for investment purposes,nor is it incorporated by reference into this Annual Report on Form 10-K(Form 10-K).9Throughout this Form 10-K,

174、we incorporate by reference information from parts of other documents filed with the U.S.Securities and Exchange Commission(SEC).The SEC allows us to disclose important information by referring to it in this manner.Our annual reports on Form 10-K,quarterly reports on Form 10-Q,current reports on For

175、m 8-K,proxy statements for our annual stockholders meetings and amendments to those reports are available free of charge on our website, soon as reasonably practical after we electronically file the material with,or furnish it to,the SEC.In addition,copies of our annual report will be made available

176、,free of charge,upon written request.The SEC also maintains a website at www.sec.gov that contains reports,proxy statements and other information regarding SEC registrants,including Lockheed Martin Corporation.Forward-Looking StatementsThis Form 10-K contains statements that,to the extent they are n

177、ot recitations of historical fact,constitute forward-looking statements within the meaning of the federal securities laws and are based on our current expectations and assumptions.The words“believe,”“estimate,”“anticipate,”“project,”“intend,”“expect,”“plan,”“outlook,”“scheduled,”“forecast”and simila

178、r expressions are intended to identify forward-looking statements.These statements are not guarantees of future performance and are subject to risks and uncertainties.Statements and assumptions with respect to future sales,income and cash flows,growth,program performance,the outcome of litigation,an

179、ticipated pension cost and funding,environmental remediation cost estimates,planned acquisitions or dispositions of assets,or the anticipated consequences are examples of forward-looking statements.Numerous factors,including the risk factors described in the following section,could cause our actual

180、results to differ materially from those expressed in our forward-looking statements.Our actual financial results likely will be different from any projections due to the inherent nature of projections.Given these uncertainties,forward-looking statements should not be relied on in making investment d

181、ecisions.The forward-looking statements contained in this Form 10-K speak only as of the date of its filing.Except where required by applicable law,we expressly disclaim a duty to provide updates to forward-looking statements after the date of this Form 10-K to reflect subsequent events,changed circ

182、umstances,changes in expectations,or the estimates and assumptions associated with them.The forward-looking statements in this Form 10-K are intended to be subject to the safe harbor protection provided by the federal securities laws.ITEM 1A.Risk FactorsAn investment in our common stock or debt secu

183、rities involves risks and uncertainties.While we seek to identify,manage and mitigate risks to our business,risk and uncertainty cannot be eliminated or necessarily predicted.The outcome of one or more of these risks could have a material effect on our operating results,financial position,or cash fl

184、ows.You should carefully consider the following factors,in addition to the other information contained in this Annual Report on Form 10-K,before deciding to trade in our common stock or debt securities.Risks Related to our Reliance on Government Contracts,our Industry and the EconomyWe depend heavil

185、y on contracts with the U.S.Government for a substantial portion of our business.Changes in the U.S.Governments priorities,or delays or reductions in spending could have a material adverse effect on our business.We derived 73%of our total consolidated net sales from the U.S.Government in 2023,includ

186、ing 64%from the Department of Defense(DoD).We expect to continue to derive most of our sales from work performed under U.S.Government contracts.A reduction in overall U.S.defense spending,on an absolute or inflation-adjusted basis,because of shifting priorities,budget compromises or otherwise could

187、adversely affect our business.Budget uncertainty,the potential for U.S.Government shutdowns,the use of continuing resolutions,and the federal debt ceiling can adversely affect our industry and the funding for our programs.If appropriations are delayed or a government shutdown were to occur and conti

188、nue for an extended period of time,we could be at risk of reduced orders,program cancellations and other disruptions and nonpayment.When the U.S.Government operates under a continuing resolution,new contract and program starts are restricted and funding for our programs may be unavailable,reduced or

189、 delayed.Our contracts with the U.S.Government are conditioned upon the continuing availability of Congressional appropriations.Congress usually appropriates funds on a fiscal year(FY)basis even though contract performance may extend over many years.Consequently,contracts are often partially funded

190、initially,and additional funds are committed only as Congress makes further appropriations over time.To the extent we incur costs in excess of funds obligated on a contract or in advance of a contract 10award or contract definitization,we are at risk of not being reimbursed for those costs unless an

191、d until additional funds are obligated under the contract or the contract is successfully awarded,definitized and funded,which could adversely affect our results of operations,financial condition and cash flows.Failure to fund or the termination of significant programs or contracts by the U.S.Govern

192、ment could adversely affect our business and financial performance.DoDs changes in funding priorities also could reduce opportunities in existing programs and in future programs or initiatives where we intend to compete and where we have made investments.While we would expect to compete and be well

193、positioned as the incumbent on existing programs,we may not be successful and,even if we are successful,the replacement programs may be funded at lower levels or result in lower margins.In addition,our ability to grow in key areas such as hypersonics programs,classified programs and next-generation

194、franchise programs will be affected by the overall budget environment and whether development programs transition to production and the timing of such transition,all of which are dependent on U.S.Government authorization and funding.The F-35 program comprises a material portion of our revenue and re

195、ductions or delays in funding for this program and risks related to performance,schedule,cost and requirements of the program could adversely affect our performance.The F-35 program,which consists of multiple development,production and sustainment contracts,is our largest program and represented 26%

196、of our total consolidated net sales in 2023.A decision by the U.S.Government,international partners,or FMS customer countries to cut spending on this program or reduce or delay planned orders would have an adverse impact on our business and results of operations.Given the size and complexity of the

197、F-35 program,we anticipate that there will be continual reviews related to aircraft performance,program and delivery schedule,cost,and requirements as part of the DoD,Congressional,and international countries oversight and budgeting processes.Challenges and risks associated with this program include

198、 supplier performance,software development,definitizing and receiving funding for contracts on a timely basis,execution of future flight tests and findings resulting from testing and operating the aircraft,the level of cost associated with life cycle operations,sustainment and potential contractual

199、obligations,inflation-related cost pressures and the ability to improve affordability.See also the“Status of the F-35 Program”in Management Discussion and Analysis of Financial Condition and Results of Operations for a discussion of the current program status and specific challenges and risks,includ

200、ing with respect to Technology Refresh 3(TR-3)configuration development and deliveries.We also may not be successful in making hardware upgrades and other modernization capabilities in a timely manner,including as a result of dependencies on suppliers,which could increase costs and create schedule d

201、elays.Our ability to capture and retain future F-35 growth in development,production and sustainment is dependent on the success of our efforts to achieve F-35 sustainment performance,customer affordability,supply chain improvements,continued reliability improvements and other efficiencies,some of w

202、hich are outside our control.See also the Risk Factor below captioned“We are heavily dependent on suppliers and if our subcontractors or other suppliers or teaming agreement or joint venture partners fail to perform their obligations,our performance and ability to win future business could be advers

203、ely affected”for further discussion.We are subject to extensive procurement laws and regulations,including those that enable the U.S.Government to terminate contracts for convenience.Our business and reputation could be adversely affected if we or those we do business with fail to comply with these

204、laws and regulations.We must comply with extensive laws and regulations relating to the award,administration and performance of U.S.Government contracts.Government contract laws and regulations affect how we do business with our customers and impose certain risks and costs on our business.A violatio

205、n of these laws and regulations by us,our employees,others working on our behalf,a supplier or a joint venture partner could harm our reputation and result in the imposition of fines and penalties,the termination of our contracts,suspension or debarment from bidding on or being awarded contracts,los

206、s of our ability to export products or perform services and civil or criminal investigations or proceedings.From time to time,the U.S.Government has proposed contract terms,imposed internal policies,or taken positions that represent fundamental changes from historical practices or that we believe ar

207、e inconsistent with the FAR or other laws and regulations and that could adversely affect our business.In addition,costs to comply with new government regulations can increase our costs,reduce our margins and adversely affect our competitiveness.Also,a portion of our contracts are classified by the

208、U.S.Government,which imposes security requirements that limit our ability to discuss our performance on these contracts,including any specific risks,disputes and claims.Contract Termination.The U.S.Government may terminate any of our government contracts at its convenience or for default based on ou

209、r performance,either of which could adversely affect our business and financial performance.Generally,prime contractors have similar termination rights under subcontracts related to government contracts.If a contract is terminated for convenience,we generally are protected by provisions covering rei

210、mbursement for costs incurred on the contract and profit on those costs.However,to the extent insufficient funds have been appropriated by the U.S.Government to cover our costs upon a termination for convenience,the U.S.Government may assert that it is not required to appropriate additional funding.

211、If a contract is terminated for default,the U.S.Government could make claims to reduce our recovery or recoup its procurement costs and could assess other special penalties,exposing us to liability and adversely affecting our ability to compete for future 11contracts and orders.In addition,the U.S.G

212、overnment could terminate a prime contract under which we are a subcontractor,notwithstanding the fact that our performance and the quality of the products or services we delivered were consistent with our contractual obligations as a subcontractor.Undefinitized Contract Action(UCA).When operating u

213、nder a undefinitized contract action(UCA),which is when we begin performing our obligations before the terms,specifications or price are finally agreed to between the parties,the U.S.Government has the right to unilaterally definitize contracts,which it has exercised in the past and which,absent a s

214、uccessful appeal,obligates us to perform under terms and conditions imposed by the U.S.Government.This can affect our ability to negotiate mutually agreeable contract terms.If a contract is unilaterally imposed upon us,it may negatively affect our expected profit and cash flows on a program or impos

215、e burdensome terms.Bid Protests.U.S Government procurement laws permit legal challenges,referred to as bid protests,to the terms of a contract solicitation or the award of a contract.We may encounter bid protests from unsuccessful bidders on new program awards seeking to overturn the award.Unsuccess

216、ful bidders also may protest with the goal of being awarded a subcontract for a portion of the work in return for withdrawing the protest.Bid protests can result in significant expenses to us,contract modifications or even loss of the contract award and the resolution can extend the time until contr

217、act activity can begin and delay the recognition of sales and defer underlying cash flows and adversely affect our operating results.Our efforts to protest or challenge any bids for contracts that were not awarded to us also may be unsuccessful.Competition and changing procurement policies could adv

218、ersely affect our business and financial results.We operate in a highly competitive industry and our competitors may have more extensive or more specialized,engineering,technical,marketing and servicing capabilities than we do in certain areas.Our competitors may develop new technologies,products or

219、 services that could replace our current offerings.Additionally,if competitors can offer lower cost services and products,or provide services or products more quickly,at equivalent or in some cases even reduced capabilities,we may lose new business opportunities or contract recompetes,which could ad

220、versely affect our future results.We are facing increased competition from startups and non-traditional defense contractors,which may have a lower cost structure or be able to move quickly in addition to being favored,in certain cases,by procurement policy.Furthermore,acquisitions in our industry,in

221、cluding vertical integration,also could result in increased competition or limit our access to certain suppliers without appropriate remedies to protect our interests.A substantial portion of our business is awarded through competitive bidding.The U.S.Government increasingly has relied on competitiv

222、e contract award types,including indefinite-delivery,indefinite-quantity and other multi-award contracts,which have the potential to create pricing pressure and to increase our costs by requiring us to submit multiple bids and proposals.Multi-award contracts require us to make sustained efforts to o

223、btain task orders under the contract.Additionally,procurements that do not evaluate whether the cost assumptions in the bids are realistic can lead to bidders taking aggressive pricing positions,which could result in the winner realizing a loss upon contract award or an increased risk of lower margi

224、ns or realizing a loss over the term of the contract.Competitors may be willing to accept more risk or lower profitability in competing for contracts than we are.The U.S.Government also may not award us large competitive contracts that we otherwise might have won in an effort to maintain a broad ind

225、ustrial base.U.S.Government procurement policies and procedures and the application thereof are regularly changing and such changes could adversely affect our profitability or the ability to win new business.For example,an increase in the use of contract structures that shift risk to the contractor,

226、such as fixed-price development contracts and incentive-based fee arrangements,or the U.S Government using different award fee criteria than historically used(such as the evaluation of environmental factors)could adversely affect our profit rates or make it more difficult to win new contracts.The Do

227、D is increasingly pursuing rapid acquisition pathways and procedures for new technologies,including through so called“other transaction authority”agreements(OTAs).OTAs are exempt from many traditional procurement laws,including the FAR,and an OTA award may be subject,in certain cases,to the conditio

228、n that a significant portion of the work under the OTA is performed by a non-traditional defense contractor or that a portion of the cost of the protype project is funded by non-governmental sources.Changes in regulations or interpretations of what are allowable costs under our government contracts

229、could adversely impact our profitability and changes in contract financing policy for fixed-price contracts,such as changes in performance and progress payments policies,could significantly affect the timing of our cash flows.Our profitability and cash flow may vary based on the mix of our contracts

230、 and programs,our performance,and our ability to control costs.Our profitability and cash flow may vary materially depending on the types of government contracts undertaken,the nature of products produced or services performed under those contracts,the costs incurred in performing the work,the achie

231、vement of other performance objectives and the stage of performance at which the right to receive fees is determined,particularly under award and incentive-fee contracts.Failure to perform to customer expectations and contract requirements may result in reduced fees or losses and may adversely affec

232、t our financial performance.12Contract types primarily include fixed-price and cost-reimbursable contracts.Cost-reimbursable contracts provide for the payment of allowable costs incurred during performance of the contract plus a fee up to a ceiling based on the amount that has been funded.Cost,sched

233、ule or technical performance issues with respect to cost-reimbursable contracts could result in reduced fees,lower profit rates,or program cancellation.Fixed-price contracts are predominantly either firm fixed-price(FFP)contracts or fixed-price incentive(FPI)contracts.Under FFP contracts,we receive

234、a fixed price irrespective of the actual costs we incur and therefore we carry the burden of any cost overruns.Under FPI contracts the U.S.Government is responsible for our costs up to a negotiated ceiling price and we generally share,based on a negotiated sharing formula,savings from cost underruns

235、 and expenses,up to the negotiated ceiling price,from cost overruns.We bear the risk for all cost overruns that exceed the negotiated ceiling price.Due to the fixed-price nature of the contracts,if our actual costs exceed our estimates,our margins and profits are reduced and we could incur a reach-f

236、orward loss.A reach-forward loss is when estimates of total costs to be incurred on a contract exceed total estimates of the transaction price.When this occurs,a provision for the entire loss is determined at the contract level and is recorded in the period in which the loss is evident.Under both fi

237、xed-price and cost-reimbursable contracts,if we are unable to control costs,our operating results could be adversely affected.Costs to complete a contract may increase for many reasons,including technical and manufacturing challenges,schedule delays,workforce-related issues,inaccurate initial contra

238、ct cost estimates,the timeliness and availability of materials from suppliers,internal and subcontractor performance or product quality issues,inability to meet cost reduction initiatives or achieve efficiencies from digital transformation,changing laws or regulations,inflation and natural disasters

239、.Certain contracts may impose other risks,such as forfeiting fees,paying penalties,or providing replacement systems in the event of performance failure.Contracts for development programs include complex design and technical requirements and are often contracted on a cost-reimbursable basis,however,s

240、ome of our existing development programs are contracted on a fixed-price basis.In addition,we have certain contracts where we bid upfront on cost-reimbursable development work and the follow-on fixed-price production options in one submission.We expect we also will bid on similar programs in the fut

241、ure.Fixed-price development work or fixed-price production options,especially on competitively bid programs,is inherently riskier than cost-reimbursable work because the revenue is fixed,while the estimates of costs required to complete these contracts are subject to significant variability due to t

242、he nature of development programs.The technical complexity coupled with the fixed-price contract structure of certain of our ongoing development programs or new programs increases the risk that our costs will be greater than anticipated,resulting in reduced margins,operating profit,or reach-forward

243、losses during the period of contract performance or upon contract award,all of which could be significant to our operating results,cash flows,or financial condition.Bidding upfront on fixed-price production options increases the risk that we may experience lower margins than expected,or a loss,on th

244、e production options because we must estimate the cost of producing a product before it has been developed.These risks may cause us not to bid on certain future programs,which could adversely affect our future growth prospects and financial performance.See Note 1 Organization and Significant Account

245、ing Policies included in our Notes to Consolidated Financial Statements for further details about losses incurred on certain programs,including fixed-price development programs.Contracts for the transition from development to production(e.g.,low rate initial production(LRIP)contracts)also create per

246、formance and financial risks to our business because of the challenge of starting and stabilizing a manufacturing production and test line while concurrently validating final design and managing change in requirements or capabilities requested by the customer.Many of our contracts include multiple o

247、ption years exercisable at the customers discretion,which carries risk.The customer may decline to exercise an option,or the customer may exercise an option on a contract for which we expect to incur a loss or perform at a low margin,either of which could adversely affect our financial results.We ar

248、e routinely subject to audit by our customers on government contracts and the results of those audits could have an adverse effect on our business,reputation and results of operations.U.S.Government agencies,including the Defense Contract Audit Agency,the Defense Contract Management Agency and vario

249、us agency Inspectors General,routinely audit and investigate government contractors.These agencies review a contractors compliance with applicable laws,regulations and contract terms,regarding,among other things,contract pricing,contract performance,cost structure and business systems.U.S.Government

250、 audits and investigations often take years to complete,and many result in no adverse action against us.Like many U.S.Government contractors,we have received audit and investigative reports recommending the reduction of certain contract prices or that certain payments be repaid,delayed,or withheld,a

251、nd may involve substantial amounts.Similarly,like other U.S.Government contractors,audits and investigations also occur related to cost reimbursements that are based upon our final allowable incurred costs for each year.We have unaudited or unsettled incurred cost claims related to past years,which

252、limits our ability to issue final billings on contracts for which authorized and appropriated funds may be expiring or can result in delays in final billings and our ability to close out a contract.13If an audit or investigation uncovers improper or illegal activities,we may be subject to civil or c

253、riminal penalties and administrative sanctions,including reductions of the value of contracts,contract modifications or terminations,forfeiture of profits,suspension of payments,penalties,fines or suspension or debarment from doing business with the U.S.Government.Suspension or debarment could have

254、a material adverse effect on us because of our dependence on contracts with the U.S.Government.In addition,we could suffer serious reputational harm if allegations of impropriety were made against us.Similar government oversight and risks to our business and reputation exist in most other countries

255、where we conduct business.Other Risks Related to our OperationsWe are heavily dependent on suppliers and if our subcontractors or other suppliers or teaming agreement or joint venture partners fail to perform their obligations,our performance and ability to win future business could be adversely aff

256、ected.We are the prime contractor on most of our contracts and rely on other companies to provide materials,major components and products,and to perform a portion of the services that are provided to our customers under the terms of most of our contracts.These arrangements may involve subcontracts,t

257、eaming arrangements,joint ventures,or supply agreements with other companies on which we rely(contracting parties)and,in many cases,our contracting parties in turn rely on lower-tier subcontractors.We sometimes have disputes with our contracting parties,including disputes regarding the cost,quality

258、and timeliness of work performed,workshares,customer concerns about the other partys performance,issues related to lower-tier subcontractor performance,our failure to issue or extend task orders,or our hiring the personnel of a subcontractor,teammate or joint venture partner or vice versa.We also co

259、uld be adversely affected by actions or issues experienced by our contracting parties that are outside of our control,such as misconduct and reputational issues involving our contracting parties,which could subject us to liability or adversely affect our ability to compete for contract awards.The fi

260、nancial stability and viability of our contracting parties or lower-tier subcontractors have and in the future could adversely affect their ability to meet their performance obligation.A failure by one or more of our contracting parties to provide the agreed-upon materials,components or products,or

261、perform the agreed-upon services,on a timely basis,according to specifications,including compliance with regulatory requirements we flow down from our prime contracts,or at all,has and may adversely affect our ability to perform our obligations and require that we transition the work to other compan

262、ies.Contracting party performance deficiencies may result in additional costs or delays in product deliveries and affect our operating results and could result in a customer terminating our contract for default or convenience.A default termination could expose us to liability and affect our ability

263、to compete for future contracts and orders.A failure by our contracting parties to meet affordability targets could negatively affect our profitability,result in contract losses and affect our ability to win new business.Additionally,we are affected by government procurement restrictions and issues

264、affecting industry supply chains broadly.For example,U.S.Government statutes and regulations impose restrictions in the sourcing of items from specified countries.We seek to manage supply risk through long-term contracts,identifying domestic or other U.S.allied alternative sources of items and maint

265、aining an acceptable level of our key materials in inventories.Advanced microelectronics,including semiconductors,underpin many of our current and future critical technologies and platforms,and global shortages of these products due to increased demand or other supply chain challenges could result i

266、n increased procurement lead times and increased costs and potential shortages,which could affect our performance.We also must comply with specific procurement requirements that can limit the number of eligible suppliers and a significant number of the components or supplies used are currently singl

267、e or sole sourced.Because the identification and qualification of new or additional suppliers can take an extended period of time,issues with suppliers or trade actions that limit our ability to use certain suppliers,especially when single or sole sourced,can have an adverse impact on our business.C

268、omplying with U.S.Government contracting regulations that limit the source or manufacture of suppliers and impose stringent cybersecurity regulations also may create challenges for our supply chain and increase costs.We remain heavily dependent on our supply chain for sourcing contractually complian

269、t components,which is outside of our direct control and is multi-tiered.The future occurrence of non-compliant components in our programs could cause suspensions in product deliveries,remediation work on installed components,contract price adjustments and alternate supply sourcing,all of which could

270、 adversely affect our results of operations,financial condition and cash flows.Our success depends,in part,on our ability to develop new technologies,products and services and efficiently produce and deliver existing products.Many of the products and services we provide are highly engineered and inv

271、olve sophisticated technologies with related complex manufacturing and systems integration processes.Our customers requirements change and evolve regularly.Accordingly,our future performance depends,in part,on our ability to adapt to changing customer needs rapidly,identify emerging technological tr

272、ends,develop and manufacture innovative products and services efficiently and bring those offerings to market quickly at cost-effective prices.This includes efforts to provide mission solutions that integrate capabilities and resources across all forces and domains,which we refer to as joint all dom

273、ain operations,and to implement emerging digital and network technologies and capabilities.Artificial intelligence technologies have rapidly developed and our business may be 14adversely affected if we cannot successfully integrate the technology into our internal business processes and product and

274、service offerings in a timely,cost-effective,compliant and responsible manner.To advance our innovation and position us to meet our customers requirements,we make investments in emerging technologies that we believe are needed to keep pace with rapid industry innovation and seek to collaborate with

275、commercial entities that we believe have complementary technologies to ours.These commercial entities may not be accustomed to government contracting and may be unwilling to agree to the governments customary terms,including with respect to intellectual property,liability and indemnification term,wh

276、ich may prevent or lessen the benefit of collaboration.We may not be successful in identifying or developing emerging technologies and may spend significant resources on projects that ultimately are unsuccessful or yield a low return on the amount invested.Our future success in delivering innovative

277、 and affordable solutions to our customers relies,in part,on our multi-year business transformation initiative that seeks to significantly enhance our digital infrastructure to increase efficiencies and collaboration throughout our business while reducing costs.This digital transformation effort req

278、uires substantial investment and if we are unable to successfully implement the strategy or do so in a timely manner,our results of operations and future competitiveness may be adversely affected.If we fail in our development projects or if our new products or technologies fail to achieve customer a

279、cceptance or competitors develop more capable technologies or offerings,we may be unsuccessful in obtaining new contracts or winning all or a portion of next generation programs,including in key areas such as hypersonics and classified work,and this could adversely affect our future performance and

280、financial results.Geopolitical,macroeconomic and public health events and conditions could adversely affect our business,operating results,financial condition and cash flows.Geopolitical.Our business is highly sensitive to geopolitical and security issues,including foreign policy actions taken by go

281、vernments such,as tariffs,sanctions,embargoes,export and import controls and other trade restrictions,which can affect the demand for our products and services,the ability to sell our products and services,and disrupt our supply chain,all of which could adversely affect our business.Global conflicts

282、,including Russias invasion of Ukraine,have significantly elevated global geopolitical tensions and security concerns.The conflict has resulted in increased demand for some of our products and services;however,if we are unable to increase production to meet demand on the timeframe expected by potent

283、ial customers,whether it be from supply constraints,government funding or otherwise,then we may lose sales opportunities as they seek alternatives,even less capable ones,that may be able to be delivered more quickly.In addition,the U.S.Government and other nations have implemented broad economic san

284、ctions and export controls targeting Russia,which,combined with the Ukraine conflict,has indirectly disrupted the global supply chain and increased pressures on certain resources.The Ukraine conflict also has increased the threat of malicious cyber activity from nation states and other actors.Chinas

285、 Ministry of Commerce announced in 2023 that it had added Lockheed Martin Corporation to its“unreliable entities list”in connection with certain foreign military sales by the U.S.Government to Taiwan involving our products and services,and that it would impose certain sanctions against us,including

286、a fine equal to twice the value of the arms that we had sold to Taiwan since September 2020.In addition,China prohibited our CEO,COO and CFO from traveling or working in China.We will continue to follow official U.S.Government guidance as it relates to sales to Taiwan and do not currently expect a m

287、aterial impact to our business from these actions.In 2023,China also implemented broad-based export restrictions on certain minerals used in the production,among other things,of semiconductors and missile systems.If China were to further restrict the export of certain materials,take further actions

288、to enforce the existing sanctions on us or impose additional sanctions,or impose sanctions on our suppliers,teammates or partners,our business could be adversely affected.International sales also may be adversely affected by actions taken by the U.S.Government in the exercise of foreign policy,Congr

289、essional oversight or the financing of particular programs,including the prevention or imposition of conditions upon the sale and delivery of our products or the transfer of sensitive technology,the imposition of sanctions,or Congressional action to restrict sales of our products.For example,the U.S

290、.Government has imposed certain sanctions on Trkish entities and persons,which has affected our ability to obtain certain U.S.export permits or authorizations necessary to perform under our existing contracts supporting the Trkish Utility Helicopter Program(TUHP),our work with Trkish industry and ou

291、r opportunity for sales in Trkiye generally.See“Note 1 Organization and Significant Accounting Policies”included in our Notes to Consolidated Financial Statements for more information on TUHP.Our inability to perform under contracts with international customers as a result of actions taken by the U.

292、S.Government has resulted and may in the future result in our inability to recover our costs and reach forward losses,claims and contract terminations by these customers and suppliers,which could have an adverse effect on our operating results.Macroeconomic.Heightened levels of inflation and the pot

293、ential worsening of macro-economic conditions,including slower growth or recession,changes to fiscal and monetary policy,tighter credit,higher interest rates and currency fluctuations,present a risk for us,our suppliers and the stability of the broader defense industrial base.If we are unable to suc

294、cessfully 15mitigate the impact of inflation,our profits,margins and cash flows,particularly for existing fixed-price contracts,may be adversely affected.Although we believe defense spending is more resilient to adverse macro-economic conditions than many other industrial sectors,our suppliers and o

295、ther partners,many of which are more exposed to commercial markets or have fewer resources,may be adversely impacted to a more significant degree than we are by an economic downturn,which could affect their performance and adversely impact our operations.In addition,macroeconomic conditions could ca

296、use budgetary pressures for our government customers resulting in reductions or delays in spending,which could adversely impact our business.Higher interest rates increase the borrowing costs on new debt and could affect the fair value of our investments.Interest rates also impact our pension.For ex

297、ample,higher interest rates generally reduce the measure of our gross pension obligations while lower interest rates increase it.Public health.We face a wide variety of risks related to public health crises,epidemics,pandemics or similar events,including COVID-19.If a new health epidemic or outbreak

298、 were to occur,we could experience broad and varied impacts similar to the impact of COVID-19,including adverse impacts to our workforce and supply chain,inflationary pressures and increased costs,schedule or production delays,market volatility and other financial impacts.If any of these were to occ

299、ur,our future results and performance could be adversely impacted.International sales may pose different economic,regulatory,competition and other risks.International sales present risks that are different and potentially greater than those encountered in our U.S.business.In 2023,26%of our total net

300、 sales were from international customers.International sales are subject to numerous political and economic factors,including changes in foreign national priorities,foreign government budgets,global economic conditions,and fluctuations in foreign currency exchange rates,the possibility of trade sanc

301、tions and other government actions,regulatory requirements,significant competition,taxation,and other risks associated with doing business outside the U.S.Sales of military products and services and any associated industrial development(offset)agreements are subject to U.S.export regulations and for

302、eign policy,and there could be significant delays or other issues in reaching definitive agreements for announced programs.See the Risk Factor“Geopolitical,macroeconomic and public health events and conditions could adversely affect our business,operating results,financial condition and cash flows.”

303、Competition for international sales is intense,including from international manufacturers whose governments sometimes provide research and development assistance,marketing subsidies and other assistance for their products and services.Our international business is conducted through foreign military

304、sales(FMS)contracted through the U.S.Government and by direct commercial sales(DCS)to international customers.FMS contracts with the U.S.Government are subject to the FAR and the DFARS.Because the U.S.Government functions as an intermediary in FMS sales,we are reliant on the capacity and speed of th

305、e DoDs administration of requests from non-U.S.countries to convert requests to sales.In contrast,DCS transactions represent sales directly to international customers and are subject to U.S.and foreign laws and regulations,including product testing,import-export control,technology transfer restricti

306、ons,investments,taxation,repatriation of earnings,exchange controls,the Foreign Corrupt Practices Act and other anti-corruption laws and regulations,and the anti-boycott provisions of the U.S.Export Control Reform Act of 2018.While we have extensive policies in place to comply with such laws and reg

307、ulations,failure by us,our employees or others working on our behalf to comply with these laws and regulations could result in administrative,civil,or criminal liabilities,including suspension,debarment from bidding for or performing government contracts,or suspension of our export privileges,which

308、could have a material adverse effect on us.We frequently team with international subcontractors and suppliers who also are exposed to similar risks.We believe DCS transactions present a higher level of potential risks because they involve direct commercial relationships with parties with which we ty

309、pically have less familiarity.Additionally,international procurement and local country rules and regulations,contract laws and judicial systems differ from those in the U.S.and,in some cases,may be less predictable than those in the U.S.,which could impair our ability to enforce contracts and increa

310、se the risk of adverse or unpredictable outcomes,including the possibility that certain matters that would be considered civil matters in the U.S.are treated as criminal matters in other countries.In conjunction with defense procurements,some international customers require contractors to comply wit

311、h industrial cooperation regulations,including entering into industrial participation,industrial development or localization agreements,sometimes referred to as offset agreements(also known as offset contracts),as a condition to obtaining orders for our products and services.These offset agreements

312、generally extend over several years and obligate the contractor to perform certain commitments,which may include in-country purchases,technology transfers,local manufacturing support,consulting support to in-country projects,investments in joint ventures and financial support projects,and preference

313、 for local suppliers or subcontractors.The customers expectations in respect of the scope of offset commitments can be substantial,including high-value content,and may exceed existing local technical capability.Failure to meet these commitments,which can be subjective and outside of our control,may

314、result in significant penalties,and could lead to a reduction in sales to a country.Furthermore,some of our existing offset agreements are dependent upon the successful operation of joint ventures that we do not control and involve products and services that are outside of our core business,which ma

315、y increase the risk of breaching our obligations,16exposing us to compliance risks of the joint venture,and impairing our ability to recover our investment.For more information on our industrial development obligations,including the notional value of our remaining industrial development obligations

316、and potential penalties for non-compliance,see“Contractual Commitments”in Managements Discussion and Analysis of Financial Condition and Results of Operations.We may be unable to benefit fully from or adequately protect our intellectual property rights or use third-party intellectual property,which

317、could negatively affect our business.We own a substantial number of U.S.and foreign patents and trademarks related to the products and services we provide.In addition to owning a large portfolio of patents and trademarks,we develop and own other intellectual property,including copyrights,trade secre

318、ts and research,development and engineering know-how,which contribute significantly to our business.We also license intellectual property to and from third parties.The FAR and DFARS provide that the U.S.Government obtains certain rights in intellectual property,including patents,developed by us and

319、our subcontractors and suppliers in performance of government contracts or with government funding.The U.S.Government may use or authorize others,including competitors,to use such intellectual property.Non-U.S.governments also may have certain rights in patents and other intellectual property develo

320、ped in performance of our contracts with these entities.The U.S.Government is pursuing aggressive positions regarding the types of intellectual property to which government use rights apply and when it is appropriate for the government to insist on broad use rights.The DoD is also implementing an ov

321、erarching intellectual property acquisition policy that will require a greater focus and planning as to intellectual property rights for its programs,and we have no assurance as to the potential impacts of this policy or any associated regulatory changes on future acquisitions.The DoDs efforts could

322、 affect our ability to protect and exploit our intellectual property and to leverage supplier intellectual property,for example,if we are unable to obtain necessary licenses from our suppliers to meet government requirements.Additionally,third parties may assert that our products or services infring

323、e their intellectual property rights,which could result in costly and time-consuming disputes,subject us to damages and injunctions and adversely affect our ability to compete and perform on certain contracts.Our business and financial performance depends on us identifying,attracting and retaining a

324、 highly skilled workforce.Our performance is dependent upon us identifying,attracting,developing,motivating and retaining a highly skilled workforce with the requisite skills in multiple areas including:engineering,science,manufacturing,information technology,cybersecurity,business development and s

325、trategy and management.Due to the national security nature of our work,our performance is also dependent upon personnel who hold security clearances and receive substantial training to work on certain programs or tasks and can be difficult to replace on a timely basis if we experience unplanned attr

326、ition.The market for highly skilled workers and leaders in our industry as well as the market for individuals holding high-level security clearances is extremely competitive and not confined to our industry.For example,we compete with commercial technology companies outside of the aerospace and defe

327、nse industry for qualified technical,cyber and scientific positions,which may not face the same type of cost pressures as a government contractor and which may be able to offer more flexible work arrangements given that certain of our employees must perform the majority of their work in a secure fac

328、ility because of the need to access classified information.If we cannot adequately attract and retain personnel with the requisite skills or clearances in this competitive market,our performance and future prospects may be adversely affected.Workforce dynamics are constantly evolving.If we do not ma

329、nage changing workforce dynamics effectively,it could adversely affect our culture,reputation and operational flexibility.Beginning with the COVID-19 pandemic,a significant portion of our workforce began working remotely and we expect a significant portion to continue working remotely under our hybr

330、id workforce model.If we are unable to effectively adapt to this hybrid work environment long term,then we may experience a less cohesive workforce,increased attrition,reduced program performance and less innovation.It is also critical that we develop and train employees,hire new qualified personnel

331、,and successfully manage the short and long-term transfer of critical knowledge and skills,including leadership development and succession planning throughout our business.While we have processes in place for management transition and the transfer of knowledge and skills,the loss of key personnel,co

332、upled with an inability to adequately train other personnel,hire new personnel or transfer knowledge and skills,could significantly impact our ability to perform under our contracts and execute on new or growing programs.Additionally,approximately 19%of our workforce is comprised of employees that a

333、re covered by collective bargaining agreements with various unions.If we encounter difficulties with renegotiations or renewals of collective bargaining arrangements or are unsuccessful in those efforts,we could incur additional costs and experience work stoppages.Union actions at suppliers also can affect us.Any delays or work stoppages could adversely affect our ability to perform under our cont