Research & Development
Lockheed Martin conducts research and development activities under customer-funded contracts and with its own independent
research and development funds. The company's independent research and development costs include basic research, applied research, development,
systems, and other concept formulation studies. Generally, these costs are allocated among all contracts and programs
in progress under U.S. Government contractual arrangements. Costs Lockheed Martin incurs under customer-sponsored
research and development programs pursuant to contracts are included in net sales and cost of sales.
Under certain arrangements in which a customer shares in product development costs, Lockheed Martin's portion
of the unreimbursed costs is expensed as incurred in cost of sales.
In the years from 2008 to 2012, Lockheed Martin spent the following on R&D (company-funded):
2012: $616 million, 1.3% of total revenues
2011: $585 million, 1.3% of total revenues
2010: $639 million, 1.4% of total revenues
2009: $717 million, 1.6% of total revenues
2008: $698 million, 1.7% of total revenues
