Lockheed Martin 2013 Annual Report Download - page 26

reporting unit’s related goodwill assets. In 2013, we recorded a non-cash goodwill impairment charge of $195 million, net of
state tax benefits. See “Critical Accounting Policies - Goodwill” in Management’s Discussion and Analysis of Financial
Condition and Results of Operations and “Note 1 – Significant Accounting Policies” for more information on this
impairment charge.
Changes in U.S. or foreign tax laws, including possibly with retroactive effect, and audits by tax authorities could result
in unanticipated increases in our tax expense and affect profitability and cash flows. For example, proposals to lower the U.S.
corporate income tax rate would require us to reduce our net deferred tax assets upon enactment of the related tax legislation,
with a corresponding material, one-time increase to income tax expense, but our income tax expense and payments would be
materially reduced in subsequent years.
Actual financial results could differ from our judgments and estimates. Refer to “Critical Accounting Policies” in
Management’s Discussion and Analysis of Financial Condition and Results of Operations, and “Note 1 – Significant
Accounting Policies” of our consolidated financial statements for a complete discussion of our significant accounting
policies and use of estimates.
ITEM 1B. Unresolved Staff Comments.
None.
ITEM 2. Properties.
At December 31, 2013, we owned or leased building space (including offices, manufacturing plants, warehouses, service
centers, laboratories, and other facilities) at 518 locations primarily in the U.S. Additionally, we manage or occupy various
U.S. Government-owned facilities under lease and other arrangements.
At December 31, 2013, we had significant operations in the following locations:
•Aeronautics – Palmdale, California; Marietta, Georgia; Greenville, South Carolina; Fort Worth and San Antonio, Texas;
and Montreal, Canada.
•Information Systems & Global Solutions – Goodyear, Arizona; Sunnyvale, California; Colorado Springs and Denver,
Colorado; Gaithersburg and Rockville, Maryland; Valley Forge, Pennsylvania; and Houston, Texas.
•Missiles and Fire Control – Camden, Arkansas; Orlando, Florida; Lexington, Kentucky; and Grand Prairie, Texas.
•Mission Systems and Training – Orlando, Florida; Baltimore, Maryland; Moorestown/Mt. Laurel, New Jersey; Owego
and Syracuse, New York; Akron, Ohio; and Manassas, Virginia.
•Space Systems – Huntsville, Alabama; Sunnyvale, California; Denver, Colorado; Albuquerque, New Mexico; and
Newtown, Pennsylvania.
•Corporate activities – Lakeland, Florida and Bethesda, Maryland.
In November 2013, we committed to a plan to vacate our leased facilities in Goodyear, Arizona and Akron, Ohio, and
close our owned facility in Newtown, Pennsylvania and certain owned buildings at our Sunnyvale, California facility. We
expect these closures, which include approximately 2.5 million square feet of facility space, will be substantially complete by
the middle of 2015. For information regarding these matters, see “Note 2 – Restructuring Charges” of our consolidated
financial statements.
The following is a summary of our square feet of floor space by business segment at December 31, 2013, inclusive of the
facilities that we plan to vacate as mentioned above (in millions):
Owned Leased
U.S. Government-
Owned Total
Aeronautics 5.8 2.7 14.2 22.7
Information Systems & Global Solutions 2.5 5.7 — 8.2
Missiles and Fire Control 4.2 5.1 1.3 10.6
Mission Systems and Training 5.8 5.3 0.4 11.5
Space Systems 8.5 1.6 7.9 18.0
Corporate activities 3.0 0.9 — 3.9
Total 29.8 21.3 23.8 74.9
We believe our facilities are in good condition and adequate for their current use. We may improve, replace, or reduce
facilities as considered appropriate to meet the needs of our operations.
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