LOCKHEED MARTIN CORP 10-Q

ITEM 4. Controls and Procedures We performed an evaluation of the effectiveness of our disclosure controls and procedures as of June 30, 2024. The evaluation was performed with the participation of senior management of each business segment and key corporate functions, under the supervision of the Chief Executive Officer (CEO) and Chief Financial Officer (CFO). Based on this evaluation, the CEO and CFO concluded that our disclosure controls and procedures were operating and effective as of June 30, 2024. There were no changes in our internal control over financial reporting during the quarter ended June 30, 2024 that materially affected, or are reasonably likely to materially affect, our internal control over financial reporting. Forward-Looking Statements This Form 10-Q contains statements that, to the extent they are not 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 similar expressions are intended to identify forward-looking statements. 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: • our reliance on contracts with the U.S. Government, which are dependent on U.S. Government funding and can be terminated for convenience, and our ability to negotiate favorable contract terms; • budget uncertainty, the risk of future budget cuts, the impact of continuing resolution funding mechanisms and the debt ceiling and the potential for government shutdowns and changing funding and acquisition priorities; • risks related to the development, production, sustainment, performance, schedule, cost and requirements of complex and technologically advanced programs, including the F-35 program; • planned production rates and orders for significant programs, compliance with stringent performance and reliability standards, and materials availability, including government furnished equipment; • the timing of contract awards or delays in contract definitization as well as the timing and customer acceptance of product deliveries and performance milestones; • our ability to recover costs under U.S. Government contracts and the mix of fixed-price and cost-reimbursable contracts; • customer procurement policies that shift risk to contractors, including competitively bid programs with fixed-price development work or follow-on production options or other financial risks; and the impact of investments, cost overruns or other cost pressures and performance issues on fixed price contracts; • changes in procurement and other regulations and policies affecting our industry, export of our products, cost allowability or recovery, preferred contract type, and performance and progress payments policy; • performance and financial viability of key suppliers, teammates, joint ventures (including United Launch Alliance), joint venture partners, subcontractors and customers; • economic, industry, business and political conditions including their effects on governmental policy; • the impact of inflation and other cost pressures; • the impact of pandemics and epidemics on our business and financial results, including supply chain disruptions and delays, employee absences, and program delays; • government actions that prevent the sale or delivery of our products (such as delays in approvals for exports requiring Congressional notification); • trade policies or sanctions (including Chinese sanctions on us or our suppliers, teammates or partners, U.S. Government sanctions on Türkish entities and persons, and indirect effects of sanctions on Russia to our supply chain; • our success expanding into and doing business in adjacent markets and internationally and the risks posed by international sales; 45 Table of Contents • changes in foreign national priorities and foreign government budgets and planned orders, including potential effects from fluctuations in currency exchange rates; • the competitive environment for our products and services, including competition from startups and non-traditional defense contractors; • our ability to develop and commercialize new technologies and products, including emerging digital and network technologies and capabilities; • our ability to benefit fully from or adequately protect our intellectual property rights; • our ability to attract and retain a highly skilled workforce, the impact of work stoppages or other labor disruptions; • cyber or other security threats or other disruptions faced by us or our suppliers; • our ability to implement and continue, and the timing and impact of, capitalization changes such as share repurchases, dividend payments and financing transactions; • the accuracy of our estimates and projections; • changes in pension plan assumptions and actual returns on pension assets; cash funding requirements and pension risk transfers and associated settlement charges; • realizing the anticipated benefits of acquisitions or divestitures, investments, joint ventures, teaming arrangements or internal reorganizations, and market volatility affecting the fair value of investments that are marked to market; • our efforts to increase the efficiency of our operations and improve the affordability of our products and services, including through digital transformation and cost reduction initiatives; • the risk of an impairment of our assets, including the potential impairment of goodwill and intangibles; • the availability and adequacy of our insurance and indemnities; • impacts of climate change and compliance with laws, regulations, policies, and customer requirements in response to climate change concerns; • changes in accounting, U.S. or foreign tax, export or other laws, regulations, and policies and their interpretation or application, and changes in the amount or reevaluation of uncertain tax positions; and • the outcome of legal proceedings, bid protests, environmental remediation efforts, audits, government investigations or government allegations that we has failed to comply with law, other contingencies and U.S. Government identification of deficiencies in our business systems. These are only some of the factors that may affect the forward-looking statements contained in this Form 10-Q. For a discussion identifying additional important factors that could cause actual results to differ materially from those anticipated in the forward-looking statements, see our filings with the U.S. Securities and Exchange Commission (SEC) including, but not limited to, “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and “Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2023 and subsequent Quarterly Reports on Form 10-Q. Our filings may be accessed through the Investor Relations page of our website, www.lockheedmartin.com/investor , or through the website maintained by the SEC at www.sec.gov . Our actual financial results likely will be different from those projected due to the inherent nature of projections. Given these uncertainties, forward-looking statements should not be relied on in making investment decisions. The forward-looking statements contained in this Form 10-Q speak only as of the date of our 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-Q to reflect subsequent events, changed circumstances, changes in expectations, or the estimates and assumptions associated with them. The forward-looking statements in this Form 10-Q are intended to be subject to the safe harbor protection provided by the federal securities laws. PART II. OTHER INFORMATION