LMT Lockheed Martin Corp.

Risks

• ITEM 1A. Risk Factors
• We depend heavily on contracts with the U.S. Government, including contracts related to the F-35 program, for a substantial portion of our business.
• We are subject to a number of procurement laws and regulations, including the U.S. Government’s ability 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 laws.
• Evolving U.S. Government procurement policies and increased emphasis on cost over performance could adversely affect our business.
• We are 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.
• Our profitability and cash flow may vary based on the mix of our contracts and programs, our performance, and our ability to control costs.
• Increased competition and bid protests in a budget-constrained environment may make it more difficult to maintain our financial performance and customer relationships.
• We are the prime contractor on most of our contracts and if our subcontractors, suppliers or teaming agreement or joint venture partners fail to perform their obligations, our performance and our ability to win future business could be harmed.
• Our success depends, in part, on our ability to develop new technologies, products and services and efficiently produce and deliver existing products.
• We may be unable to benefit fully from or adequately protect our intellectual property rights or use third-party intellectual property, which could negatively affect our business.
• International sales may pose different political, economic, regulatory, competition and other risks.
• Political issues and considerations, both in the U.S. and internationally, could have a significant effect on our business.
• Our efforts to minimize the likelihood and impact of adverse cybersecurity incidents and to protect data and intellectual property may not be successful and our business could be negatively affected by cyber or other security threats or other disruptions.
• If we fail to manage acquisitions, divestitures, equity investments and other transactions successfully or if acquired entities or equity investments fail to perform as expected, our financial results, business and future prospects could be harmed.
• There can be no assurance that we will continue to increase our dividend or to repurchase shares of our common stock at current levels.
• Our business involves significant risks and uncertainties that may not be covered by indemnity or insurance.
• Pension funding and costs are dependent on several economic assumptions which if changed may cause our future earnings and cash flow to fluctuate significantly as well as affect the affordability of our products and services.
• Environmental costs could adversely affect our future earnings as well as the affordability of our products and services.
• We are involved in a number of legal proceedings. We cannot predict the outcome of litigation and other contingencies with certainty.
• Our business and financial performance depends, in part, on our ability to identify, attract and retain a highly skilled workforce.
• Our estimates and projections may prove to be inaccurate and certain of our assets may be at risk of future impairment.