Lockheed Martin(US:LMT)2026-01-29 22:18Debt and Financial Instruments - The estimated fair value of the company's outstanding debt was $22.0 billion as of December 31, 2025, with an outstanding principal amount of $22.9 billion[306]. - A 10% change in interest rates would not have a material impact on the fair value of the outstanding debt[306]. - The aggregate notional amount of outstanding foreign currency hedges was $7.2 billion as of December 31, 2025[308]. - The company uses derivative instruments to hedge against market risks from foreign currency exchange rates and interest rates[307]. Investments and Compensation Plans - The company maintains investments totaling $2.0 billion in a trust to fund non-qualified deferred compensation plans, reflected at fair value[310]. Regulatory Compliance - The company is subject to various environmental protection laws and regulations, which have not had a material adverse effect on its financial condition[47]. - The company has entered into foreign offset agreements to secure international business, reflecting the importance of compliance with local regulations[39]. - The company’s operations are heavily regulated, particularly in contracting with U.S. Government agencies and similar authorities in other countries[41]. - The company actively monitors climate change-related regulations, which could significantly increase operational and compliance burdens[48]. Performance Risks - The company’s classified contracts carry higher performance risk, and the operating results are included in consolidated financial statements[44].