Lockheed Martin 2015 Annual Report Download - page 29

events or significant changes in circumstances that indicate goodwill may be impaired. If we experience changes or factors
arise that negatively affect the expected cash flows of a reporting unit, we may be required to write off all or a portion of the
reporting unit’s related goodwill assets.
Changes in U.S. or foreign tax laws, including those 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; however, 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, 2015, we owned or leased building space (including offices, manufacturing plants, warehouses, service
centers, laboratories and other facilities) at approximately 591 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, 2015, 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 – Gaithersburg, Maryland.
•Missiles and Fire Control – Camden, Arkansas; Orlando, Florida; and Grand Prairie, Texas.
•Mission Systems and Training – Stratford and Shelton, Connecticut; Colorado Springs, Colorado; Orlando and Jupiter,
Florida; Baltimore, Maryland; Moorestown/Mt. Laurel, New Jersey; Owego and Syracuse, New York; Coatesville,
Pennsylvania; Akron, Ohio; Manassas, Virginia; and Mielec, Poland.
•Space Systems – Huntsville, Alabama; Sunnyvale, California; Denver, Colorado; Albuquerque, New Mexico; and Valley
Forge, Pennsylvania.
•Corporate activities – Lakeland, Florida; and Bethesda, Maryland.
In connection with the acquisition of Sikorsky Aircraft Corporation, we assumed 6.5 million square feet of building
space. However, as a result of our ongoing consolidation efforts we reduced our overall floor space by 2.1 million square feet
at our previously owned heritage properties in 2015.
The following is a summary of our square feet of floor space by business segment at December 31, 2015 (in millions):
Owned Leased
U.S. Government-
Owned Total
Aeronautics 5.8 2.5 14.2 22.5
Information Systems & Global Solutions 0.5 3.2 — 3.7
Missiles and Fire Control 4.2 4.3 1.8 10.3
Mission Systems and Training 10.9 8.3 0.4 19.6
Space Systems 8.5 2.6 7.8 18.9
Corporate activities 3.0 1.0 — 4.0
Total 32.9 21.9 24.2 79.0
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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