Lockheed Martin 4th Quarter 2014 Financial Results Conference Call slide image

Lockheed Martin 4th Quarter 2014 Financial Results Conference Call

Forward Looking Statements Our presentation contains "forward-looking statements" or projections based on Lockheed Martin's current expectations and assumptions. These statements are not guarantees of future performance and are subject to risks and uncertainties. Actual results may differ materially due to factors such as: the availability of funding for the Corporation's products and services; changes in customer priorities and requirements including declining budgets resulting from affordability initiatives, our dependence upon U.S. Government contracts, (e.g., the F-35 program), the deferral or termination of awards, budget uncertainty arising from sequestration or Congressional actions intended to replace sequestration, U.S. Government operations under a continuing resolution, and the success of our strategy to mitigate some of these risks focusing on expanding into adjacent markets and growing international sales; lower demand for services due to improved product field performance requiring less service support; lower in-theater support as troop levels are drawn down; and increased re- competition on existing contracts coupled with the fragmentation of large contracts into multiple smaller contracts that are awarded primarily on the basis of price; the accuracy of the Corporation's estimates and assumptions; the ability to implement, pace and effect of capitalization changes; difficulties in developing and producing operationally advanced technology systems, cyber security or other security threats, information technology failures, natural disasters, public health crises or other disruptions; the timing and customer acceptance of product deliveries; materials availability and the performance of key suppliers, teammates, joint venture partners, subcontractors, and customers; charges from any future impairment reviews that may result in the recognition of losses and a reduction in the book value of goodwill or other long- term assets; the future effect of legislation, rulemaking, and changes in accounting, tax, defense procurement, changes in policy, interpretations, or challenges to the allowability and recovery of costs incurred under government cost accounting standards, export policy, changes in contracting policy and contract mix; the future impact of acquisitions or divestitures, joint ventures, teaming arrangements, or internal reorganizations; compliance with laws and regulations, the outcome of legal proceedings and other contingencies, and U.S. Government identification of deficiencies in the Corporation's business systems; the competitive environment for the Corporation's products and services, and potential for delays in procurement due to bid protests; the Corporation's efforts to increase the efficiency of its operations and improve the affordability of its products and services including difficulties associated with: moving or consolidating operations; reducing the size of the workforce; providing for the orderly transition of management; attracting and retaining key personnel; and supply chain management; and economic, business, and political conditions domestically and internationally (including potential impacts resulting from tensions over Ukraine) and the Corporation's increased reliance on securing international and adjacent business. Except where required by applicable law, we disclaim any duty to update these forward-looking statements. Our SEC filings (found at www.lockheedmartin.com/investor, or through the website maintained by the SEC at www.sec.gov), including, our Annual Report on Form 10-K for the year ended Dec. 31, 2013, contain more information on the types of risks and other factors that could adversely affect these statements. Chart 2 January 27, 2015
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