LMTLockheed Martin

Your disclosure indicates that you continue to work to minimize the impact of supply chain challenges. In future filings, please describe the actions you have taken, or expect to take, to mitigate supply chain challenges. Additionally, we note that supply chain challenges have adversely impacted your performance and your 2023 financial results.

Rest of the question

To the extent there have been material impacts to your results of operations, revise future results of operations discussions to quantify such impacts.

We proactively manage our supply chain as part of our normal and recurring operations and at any given point in time we are taking actions with our supply chain to manage technical requirements, quality, delivery schedules, and prices, among other factors. Our disclosures on page 14 of the 2023 Form 10-K describe some of the actions we take to manage our supply chain. In future filings, beginning with our Form 10-Q for the first quarter of 2024, we will expand our disclosures describing the actions we have taken, or expect to take, to mitigate significant supply chain challenges.

Rest of the answer

Additionally, in future filings, beginning with our Form 10-Q for the first quarter of 2024, we will quantify the impacts of significant supply chain challenges to the extent such impacts are material to an understanding of our results of operations for the periods presented.

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Your disclosures on pages 39 and 64 identify several factors which may favorably or unfavorably impact your profit booking rates while your discussion regarding cost of sales merely cites changes in profit booking rates as the primary reason for changes in cost of sales.

Rest of the question

In future filings revise your discussion to identify the contributing factors driving the profit booking rate adjustments and the material factors contributing to the changes in the profit booking rate in the periods presented.

As disclosed in the 2023 Form 10-K, profit booking rate adjustments are a normal and recurring result of using the percentage of completion method of accounting for substantially all of our contracts. Our disclosures on pages 64-65 of the 2023 Form 10-K describe profit adjustments that have materially impacted, or may materially impact, our results of operations (our disclosures on page 39 also cross reference the disclosures on pages 64-65).

Rest of the answer

In future filings, beginning with our Form 10-Q for the first quarter of 2024, we will expand our disclosures to identify the primary factor(s) contributing to material changes in profit booking rate adjustments reported for the periods presented.

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