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with the $487 billion already cut from the budget, sequestration would result in almost a trillion-dollar reduction in defense spending over the next decade. Secretary Panetta has said that cuts of that magnitude would have catastrophic consequences to U.S. defense and would severely erode America’s industrial base. We agree. We must not let an automatic budget trigger become the dominant force for allocating resources and shaping the nation’s security posture. 

We are strengthening the enterprise by adhering to a strategy that puts a premium on execution. Our relentless focus on execution is a significant factor in reducing the cost of doing business, and our remarkable record of innovation continues to play a pivotal role in keeping our portfolio relevant. Innovation allows us to build on our core, move quickly and smartly as new opportunities arise, and meet affordability goals. 

As we look ahead, we recognize that we are operating at a critical inflection point as America and her allies confront an emerging national and global security landscape. We have devised a strategic blueprint based on four imperatives: Secure, Extend, Expand, and Enable. This strategy, which leverages the strength of our portfolio, will pave the way through what will be, at times, an uncertain voyage. It will: 

• Secure  our existing programs by performing with excellence. Additionally, we must continue to have candid dialogues with 

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our customers and the highest degree of transparency on all our programs. 

• Extend  the value of our platforms by shaping follow-on business and tailoring our existing capabilities for new applications. We should also continue to seek and implement innovative business models. 

•  Expand  our position within targeted segments with market-based strategies. This also means more pursuits internationally, and greater synergies between Lockheed Martin products. 

• Enable  meaningful growth through adjacent market opportunities. We want to focus on markets that will move the needle for us. 

Over the course of a century, we have made extraordinary contributions, working with our customers, to meet our nation’s greatest challenges: victory in war, prosperity in peace, exploration of the universe, and effective government services for our citizens. From building some of the very first aircraft for the U.S. military … to sending spacecraft across the solar system … to meeting the diverse needs of the U.S. Government and its allies today, the men and women of Lockheed Martin have always risen to the occasion with iconic technical achievements. 

We have no doubt we will continue to build on that record, serving with distinction, remaining true to our values, and helping to make the world a safer, better place for the next 100 years. 

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