Lockheed Martin 2015 Annual Report Download - page 115

ITEM 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure.
None.
ITEM 9A. Controls and Procedures.
Evaluation of Disclosure Controls and Procedures
We performed an evaluation of the effectiveness of our disclosure controls and procedures as of December 31, 2015.
The evaluation was performed with the participation of senior management of each business segment and key Corporate
functions, under the supervision of the Chief Executive Officer (CEO) and Chief Financial Officer (CFO). Based on this
evaluation, the CEO and CFO concluded that our disclosure controls and procedures were operating and effective as of
December 31, 2015.
Management’s Report on Internal Control Over Financial Reporting
Our management is responsible for establishing and maintaining adequate internal control over financial reporting. Our
internal control system was designed to provide reasonable assurance to our management and board of directors regarding
the reliability of financial reporting and the preparation of financial statements for external purposes.
Our management conducted an assessment of the effectiveness of our internal control over financial reporting as of
December 31, 2015. This assessment was based on the criteria set forth by the Committee of Sponsoring Organizations of the
Treadway Commission in Internal Control – Integrated Framework (2013 framework). Based on this assessment,
management has concluded that, as of December 31, 2015, our internal control over financial reporting was effective.
Our assessment of the effectiveness of our internal control over financial reporting as of December 31, 2015 did not
include an assessment of the effectiveness of internal control over financial reporting of Sikorsky Aircraft Corporation
(Sikorsky), which was acquired on November 6, 2015. The operating results of Sikorsky are included in our consolidated
financial statements from the period subsequent to the acquisition date and, excluding goodwill and intangible assets, include
$5.0 billion of assets as of December 31, 2015 and $400 million and $45 million in net sales and operating loss, respectively,
for the year then ended. We will perform an assessment of the effectiveness of Sikorsky’s internal control over financial
reporting within one year of the date of acquisition.
Our independent registered public accounting firm has issued a report on the effectiveness of our internal control over
financial reporting, which is below.
Changes in Internal Control Over Financial Reporting
Except as described below, here were no changes in our internal control over financial reporting during the most recently
completed fiscal quarter that materially affected, or are reasonably likely to materially affect, our internal control over
financial reporting.
We are in the process of integrating Sikorsky’s operations with our operations, including integration of financial
reporting processes and procedures and internal controls over financial reporting. We believe we will be able to maintain
sufficient controls over our financial reporting throughout this integration process. Because of the size and complexity and
the timing of the Sikorsky acquisition, the internal controls over financial reporting of Sikorsky have been excluded from our
assessment of the effectiveness of our internal control over financial reporting as of December 31, 2015 (as described above).
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