What changed in this filing

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Item 4. Controls and Procedures

2025-04-22 compared with 2024-10-22 · 15 added, 17 removed, 43 unchanged (43% of the section changed)

Controls and Procedures

We performed an evaluation of the effectiveness of our disclosure controls and procedures as of September 29, 2024.

We performed an evaluation of the effectiveness of our disclosure controls and procedures as of March 30, 2025.

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 September 29, 2024.

There were no changes in our internal control over financial reporting during the quarter ended September 29, 2024 that materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

Based on this evaluation, the CEO and CFO concluded that our disclosure controls and procedures were operating and effective as of March 30, 2025.

There were no changes in our internal control over financial reporting during the quarter ended March 30, 2025 that materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

Forward-Looking Statements

6 unchanged sentences

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;

• budget uncertainty, the risk of future budget cuts, the impact of continuing resolution funding mechanisms, 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;

• the timing of contract awards or contract definitization, achievement of performance milestones, customer acceptance of product deliveries, and receipt of customer payments;

• 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;

• customer procurement and other policies, laws, regulations and executive actions that affect our and our industry’s, programs, future opportunities, and financial performance, including those relating to mission priorities, competing domestic and international spending, contracting terms (such as fixed-price requirements), treatment of contractor performance issues, and contractor access to competitive opportunities;

• performance and financial viability of key suppliers, teammates, joint ventures (including United Launch Alliance), joint venture partners, subcontractors and customers;

1 unchanged sentence

• 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);

• government actions that restrict or prevent the sale or delivery of our products (such as delays in approvals for exports requiring Congressional notification);

• foreign policy and international trade actions taken by governments such as tariffs, sanctions, embargoes, export and import controls, buying preferences, and other trade restrictions;

• our success expanding into and doing business in adjacent markets and internationally and the risks posed by international sales;

• 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;

• changes in non-U.S.

national priorities and government budgets and planned orders, including potential effects from fluctuations in currency exchange rates;

• the competitive environment for our products and services;

• our ability to develop and commercialize new technologies and products, including emerging digital and network technologies and capabilities;

10 unchanged sentences

• 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;

• compliance with laws, regulations, policies, and customer requirements relating to environmental matters;

• the impact of public health crises, natural disasters and other severe weather conditions on our business and financial results, including supply chain disruptions and delays, employee absences, and program delays;

• 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;

• 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.

• the outcome of legal proceedings, bid protests, environmental remediation efforts, audits, administrative reviews, government investigations or government allegations that we have failed to comply with law, other contingencies and U.S.

Government identification of deficiencies in our business systems.

1 unchanged sentence

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.

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 2024 Form 10-K 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.

7 unchanged sentences

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 4. Controls and Procedures