936468--2/28/2008--LOCKHEED_MARTIN

related topics

{regulation, government, change}

{regulation, change, law}

{loss, insurance, financial}

{customer, product, revenue}

{cost, contract, operation}

{financial, litigation, operation}

{acquisition, growth, future}

{personnel, key, retain}

{operation, international, foreign}

{cost, regulation, environmental}

{cost, operation, labor}

{tax, income, asset}

Our existing U.S. Government contracts are subject to continued appropriations by Congress and may be terminated or delayed if future funding is not made available. Reduced funding for defense procurement and research and development programs could result in terminated or delayed contracts and adversely affect our ability to grow or maintain our sales and profitability. Changes in military strategy and planning may affect future procurement priorities and existing programs. As a U.S. Government contractor, we are subject to a number of procurement rules and regulations. Our business could be adversely affected by a negative audit by the U.S. Government. The nature of our business involves significant risks and uncertainties that may not be covered by indemnity or insurance. Our earnings and margins may vary based on the mix of our contracts and programs. If our subcontractors or suppliers fail to perform their contractual obligations, our prime contract performance and our ability to obtain future business could be materially and adversely impacted. We use estimates in accounting for many of our programs. Changes in our estimates could affect our future financial results. New accounting standards could result in changes to our methods of quantifying and recording accounting transactions, and could affect our financial results and financial position. The level of returns on pension and postretirement plan assets, changes in interest rates and other factors could affect our earnings in future periods. International sales and suppliers may pose potentially greater risks. If we fail to manage acquisitions, divestitures and other transactions successfully, our financial results, business and future prospects could be harmed. Business disruptions could seriously affect our future sales and financial condition or increase our costs and expenses. Unforeseen environmental costs could impact our future earnings. Unanticipated changes in our tax provisions or exposure to additional income tax liabilities could affect our profitability. We are involved in a number of legal proceedings. We cannot predict the outcome of litigation and other contingencies with certainty. In order to be successful, we must attract and retain key employees. Our forward-looking statements and projections may prove to be inaccurate.

Full 10-K form ▸

936468--2/28/2008--LOCKHEED_MARTIN_CORP