Lockheed Martin 1996 Annual Report Download - page 65

Download and view the complete annual report

Please find page 65 of the 1996 Lockheed Martin annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 92

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92

Lockheed Martin Corporation
unlikely event that the Corporation were required to fund the
entire cost of such remediation, the statutory framework
provides that the Corporation may pursue rights of contribu-
tion from the other PRPs. Among the variables management
must assess in evaluating costs associated with these sites
are changing cost estimates, continually evolving govern-
mental environmental standards and cost allowability issues.
Therefore, the nature of these environmental matters makes
it extremely difficult to estimate the timing and amount of
any future costs that may be necessary for remedial matters.
The Corporation is currently unable to predict the outcome
of these matters, inasmuch as the actual costs of remedial
actions have not been determined and the allocation of lia-
bilities among parties that ultimately may be found liable
remains uncertain.
In 1994, the Corporation was awarded a $180 million
fixed price contract by the DOE for the Phase II design, con-
struction and limited test of remediation facilities, and the
Phase III full remediation of waste found in Pit 9, located
on the Idaho National Engineering and Environmental
Laboratory reservation. The Corporation has incurred and
continues to incur significant unanticipated costs and
schedule impacts due to complex technical and contractual
matters which threaten the viability of the overall Pit 9 pro-
gram. The Corporation is currently working to identify and
quantify the overall effects, including the financial impact,
of these matters, and discussions with the DOE are continu-
ing; however, no resolution of these technical and contrac-
tual matters has been achieved to date. Upon completion of
the Corporation's investigation into the circumstances which
gave rise to these schedule, technical and cost issues, the
Corporation will provide the DOE an appropriate request for
equitable adjustment. The total amount of such request for
equitable adjustment has not yet been determined.
63