Lockheed Martin 2011 Annual Report Download - page 24

ITEM 1B. UNRESOLVED STAFF COMMENTS
None.
ITEM 2. PROPERTIES
At December 31, 2011, we operated in 573 locations (including offices, manufacturing plants, warehouses, service
centers, laboratories, and other facilities) throughout the U.S. and internationally. Of these, we owned 45 locations
aggregating approximately 29 million square feet, and leased space at 528 locations aggregating approximately 25 million
square feet. We also manage or occupy various government-owned facilities under leases and various other arrangements.
The U.S. Government also furnishes equipment that we use in some of our businesses.
At December 31, 2011, 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; Lexington, Kentucky; Baltimore, Maryland; Moorestown and
Mt. Laurel, New Jersey; Albuquerque, New Mexico; Owego and Syracuse, New York; Akron, Ohio; Grand Prairie, Texas;
and Manassas, Virginia.
•Information Systems & Global Solutions – 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 Newtown, Pennsylvania.
•Corporate activities – Lakeland, Florida and Bethesda, Maryland.
The following is a summary of our floor space by business segment at December 31, 2011:
(Square feet in millions) Owned Leased
Government-
Owned Total
Aeronautics 5.2 3.6 15.2 24.0
Electronic Systems 9.7 11.9 8.6 30.2
Information Systems & Global Solutions 2.5 7.1 — 9.6
Space Systems 8.6 1.8 .9 11.3
Corporate activities 3.0 .8 — 3.8
Total 29.0 25.2 24.7 78.9
Some of our owned properties, primarily classified under corporate activities, are leased to third parties. 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. We believe the probability is remote that the outcome of these matters will have
a material adverse effect on the Corporation as a whole, notwithstanding that the unfavorable resolution of any matter may
have a material effect on our net earnings in any particular quarter. We cannot predict the outcome of legal proceedings with
certainty. These matters include the proceedings summarized in Note 13 – Legal Proceedings, Commitments, and
Contingencies.
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.
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