Lockheed Martin 2007 Annual Report Download - page 33

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ITEM 2. PROPERTIES
At December 31, 2007, we operated in 553 locations (including offices, manufacturing plants, warehouses, service
centers, laboratories and other facilities) throughout the United States and internationally. Of these, we owned 47 locations
aggregating approximately 29 million square feet and leased space at 506 locations aggregating approximately 26 million
square feet. We also manage or occupy various government-owned facilities. The U.S. Government also furnishes equipment
that we use in some of our businesses.
At December 31, 2007, our business segments occupied facilities at the following major locations that housed in excess
of 500,000 square feet of floor space:
•Aeronautics—Palmdale, California; Marietta, Georgia; Greenville, South Carolina; and Fort Worth and San Antonio,
Texas.
•Electronic Systems—Camden, Arkansas; Orlando, Florida; Baltimore, Maryland; Eagan, Minnesota; Moorestown/Mt.
Laurel, New Jersey; Albuquerque, New Mexico; Owego and Syracuse, New York; Akron, Ohio; Grand Prairie, Texas; and
Manassas, Virginia.
•Information Systems & Global Services—Goodyear, Arizona; San Jose and Sunnyvale, California; Colorado Springs
and Denver, Colorado; Gaithersburg and Rockville, Maryland and other locations within the Washington, D.C.
metropolitan area; Valley Forge, Pennsylvania; and Houston, Texas.
•Space Systems—Sunnyvale, California; Denver, Colorado; and New Orleans, Louisiana.
•Corporate activities—Bethesda, Maryland.
The following is a summary of our floor space by business segment at December 31, 2007:
(Square feet in millions) Leased Owned
Government
Owned Total
Aeronautics 3.4 5.0 15.2 23.6
Electronic Systems 10.7 10.0 6.3 27.0
Information Systems & Global Services 9.5 2.9 — 12.4
Space Systems 1.7 8.6 4.7 15.0
Corporate activities 0.8 2.8 — 3.6
Total 26.1 29.3 26.2 81.6
A portion of our activity is related to engineering and research and development, which is not susceptible to productive
capacity analysis. In the area of manufacturing, most of the operations are of a job-order nature, rather than an assembly line
process, and productive equipment has multiple uses for multiple products. Management believes that all of our major
physical facilities are in good condition and are adequate for their intended use.
ITEM 3. LEGAL PROCEEDINGS
We are a party to or have property subject to litigation and other proceedings, including matters arising under provisions
relating to the protection of the environment. In the opinion of management and in-house counsel, the probability is remote
that the outcome of these matters will have a material adverse effect on the Corporation as a whole. The results of legal
proceedings, however, cannot be predicted with certainty. These matters include the proceedings summarized in Note 14 –
Legal Proceedings, Commitments and Contingencies beginning on page 87 of this Form 10-K.
From time-to-time, agencies of the U.S. Government investigate whether our operations are being conducted in
accordance with applicable regulatory requirements. U.S. Government investigations of us, whether relating to government
contracts or conducted for other reasons, could result in administrative, civil or criminal liabilities, including repayments,
fines or penalties being imposed upon us, or could lead to suspension or debarment from future U.S. Government
contracting. U.S. Government investigations often take years to complete and many result in no adverse action against us.
We are subject to federal and state requirements for protection of the environment, including those for discharge of
hazardous materials and remediation of contaminated sites. As a result, we are a party to or have our property subject to
various lawsuits or proceedings involving environmental protection matters. Due in part to their complexity and
pervasiveness, such requirements have resulted in us being involved with related legal proceedings, claims and remediation
obligations. The extent of our financial exposure cannot in all cases be reasonably estimated at this time. For information
regarding these matters, including current estimates of the amounts that we believe are required for remediation or clean-up
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