Lockheed Martin 2013 Annual Report Download - page 27

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ITEM 3. Legal Proceedings.
We are a party to or have property subject to litigation and other proceedings that arise in the ordinary course of our
business, including matters arising under provisions relating to the protection of the environment, and are subject to
contingencies related to certain businesses we previously owned. These types of matters could result in fines, penalties,
compensatory or treble damages or non-monetary relief. 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 interim reporting period. We cannot predict the
outcome of legal or other proceedings with certainty. These matters include the proceedings summarized in “Note 13 – Legal
Proceedings, Commitments, and Contingencies” of our consolidated financial statements.
We are subject to federal, state, local and foreign 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
to the extent estimable, see “Critical Accounting Policies – Environmental Matters” in Management’s Discussion and
Analysis of Financial Condition and Results of Operations, and “Note 13 – Legal Proceedings, Commitments, and
Contingencies” of our consolidated financial statements.
As a U.S. Government contractor, we are subject to various audits and investigations by the U.S. Government to
determine 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, proposed debarment, debarment from eligibility for future U.S. Government contracting, or suspension of export
privileges. Suspension or debarment could have a material adverse effect on us because of our dependence on contracts with
the U.S. Government. U.S. Government investigations often take years to complete and many result in no adverse action
against us. We also provide products and services to customers outside of the U.S., which are subject to U.S. and foreign
laws and regulations and foreign procurement policies and practices. Our compliance with local regulations or applicable
U.S. Government regulations may also be audited or investigated.
ITEM 4. Mine Safety Disclosures.
Not applicable.
ITEM 4(a). Executive Officers of the Registrant.
Our executive officers as of February 14, 2014 are listed below, with their ages on that date, positions and offices
currently held, and principal occupation and business experience during at least the last five years. There were no family
relationships among any of our executive officers and directors. All officers serve at the discretion of the Board of Directors.
Richard F. Ambrose (age 55), Executive Vice President – Space Systems
Mr. Ambrose has served as Executive Vice President of Space Systems since April 2013. He previously served as Vice
President and Deputy, Space Systems from July 2012 to March 2013; President, Information Systems & Global Solutions -
Security from January 2011 to June 2012; and Vice President and General Manager, Space Systems - Surveillance and
Navigations Systems from January 2008 to December 2010.
Sondra L. Barbour (age 51), Executive Vice President – Information Systems & Global Solutions
Ms. Barbour has served as Executive Vice President of Information Systems & Global Solutions since April 2013. She
previously served as Senior Vice President and Chief Information Officer from January 2012 to March 2013, and Vice
President and Chief Information Officer from February 2008 to January 2012.
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