Ladies and gentlemen, thank you for standing by, and welcome to the Lockheed Martin Fourth Quarter and Full Year 2020 Earnings Results Conference Call. At this time, all participants are in listen-only mode. Later, we will conduct a question-and-answer session, and instructions will be given at that time. As a reminder, today's conference is being recorded. I would now like to turn the conference over to Greg Gardner, Vice President of Investor Relations. Please go ahead, sir. Thanks, Greg. Good morning, everyone. I hope you've all had a great start to the new year and that this call finds you and your family safe and healthy. Welcome to our fourth quarter 2020 earnings call, as we review our results, strategic new business activities, key accomplishments, and our outlook for 2021. Before I begin, I'd like to take a moment to reflect on the loss of Michele Evans, our Aeronautics business area leader, who passed away earlier this month. Michele dedicated 34 years of service to our company and touched the lives of countless people, both inside and outside the corporation. I knew Michele for years, and I can say that she lived a life of strength and grace. While we mourn her loss, we also are thankful to have had her as part of our Lockheed Martin family. We'll all miss Michele. As we look back to the year from a broader perspective, 2020 introduced personal and professional challenges to each and every one of us. I'll begin my summary of Lockheed Martin's results today by thanking the men and women of our company and their families for stepping up to deliver outstanding performance during an extremely difficult time. It was through their dedication and commitment that we were able to drive operational and financial results, which not only exceeded many of our expectations, but also set records in several areas. The coronavirus outbreak remains an ongoing pandemic, and we're continuing to take actions to mitigate its impacts. Vaccines are also becoming available to help combat this disease, and we're hopeful for a return to a more normal business environment as we progress throughout the year. Our dedicated workforce and our resilient supply chain continue to perform with excellence during these demanding times, supporting our global customers and their important missions, and I'm very proud of their accomplishments. Moving to our results, we delivered another year of outstanding performance in 2020, strategically, operationally, and financially. Ken will discuss our financial results in more detail and provide our full year 2021 financial outlook. I'd like to provide a few highlights from the past year, a period in which we set high watermarks in sales, earnings, and cash from operations. First, sales and segment profit each grew 9% over 2019, and our 2020 earnings per share increased by 11%. We had a strong year of cash generation, achieving $8.2 billion of cash from operations, even after a $1 billion voluntary pension contribution, and after accelerating payments to our supply chain to help mitigate COVID impacts. We are continuing this practice, prioritizing our vulnerable and small business partners. We recorded over $68 billion in orders in 2020, growing our backlog by $3 billion, resulting in a robust $147 billion year-end total backlog. These results reflect the high level of execution being achieved across the company, providing critical security and deterrent solutions for our customers. As we look to 2021, our broad portfolio has us positioned for continued growth in all four of our business areas. We expect our cash generation to remain strong, and we plan to continue our balanced cash deployment actions, investing in innovative technologies and strategic opportunities to provide our customers with enhanced capabilities and still returning cash to shareholders. Turning to defense budgets, the fiscal year 2021 National Defense Authorization Act has been passed into legislation, and the Department of Defense appropriations were approved as part of the FY 2021 omnibus funding bill. Both of these congressional actions adhere to the Bipartisan Budget Act of 2019, which established spending levels for discretionary defense budgets with a total fiscal year 2021 national defense spending target of approximately $740 billion. Also, Congress passed a $900 billion COVID relief package, which extended Section 3610 of the CARES Act to March 31st, providing federal agencies the authority to reimburse contractors who are temporarily unable to work due to facility closures or other restrictions. Lockheed Martin programs were well supported in the FY 2021 appropriations bill, with Congress adding funding of over $1.7 billion for 17 additional F-35 aircraft and other development and integration activities for the program. Adding nearly $900 million for nine additional C-130Js, plus support work for that airplane. Over $400 million for Sikorsky programs, including additional CH-53K and Black Hawk helicopters, also the initiation of an eighth THAAD battery for the U.S. Army. Turning to our portfolio, I'd like to touch on several notable achievements demonstrating our focus on strategic growth and operational performance. As we announced last month, we have entered into a definitive agreement to acquire Aerojet Rocketdyne, an action that, once finalized, will bring long-term strategic value to our entire portfolio. As we commented then, our 21st Century Warfare strategy includes enabling growth areas such as hypersonics, tactical and integrated air and missile defense, and space systems domains. Aerojet's expertise in propulsion systems will benefit our existing hypersonic programs as they progress from development to production, and will improve our tactical missiles and air and missile defense products while continuing Aerojet Rocketdyne's legacy as a merchant supplier to the entire industry. We believe this combination will deliver innovations and improve efficiencies that will offer more timely and affordable solutions for all of our customers, including the Department of Defense, domestic manufacturers, and our international partners. We're very excited about this transaction. Moving to the business areas. In Aeronautics, our F-35 team finished the year strong, delivering a total of 120 F-35 aircraft. Our Aero production organization, our partners, teammates in the supply chain, all worked to overcome manufacturing issues introduced by this pandemic. We've now delivered over 600 airplanes since the program's inception, with nearly 360 jets still in backlog, and domestic as well as international opportunities ahead of us. Over two-thirds of the jets in the plan of record are still to be ordered. The aircraft continue to perform well. It's operating from 26 bases and ships around the globe, and the Royal Australian Air Force recently declared initial operating capability in December, the seventh country to do so since the program began. Also, in our Aeronautics business, the U.S. Air Force awarded a $900 million contract for us to provide sustainment and support services for F-16 aircraft, including maintenance and modification activities. Of course, the F-16 is one of our longest-running production programs, and we will look to optimize the Air Force's F-16 fleet for greater capability, readiness, and performance via this new sustainment contract. Moving to our Space business area, we recently won a $4.9 billion award for our Next-Generation Overhead Persistent Infrared, or OPIR, contract. This award funds the production of three geosynchronous satellites and ground systems to provide initial warning of ballistic or tactical missile launches anywhere in the world. These new space vehicles will have more powerful sensors and greater resiliency to enhance our nation's air and missile defense capabilities well into the 21st century. Keeping with our Space organization, we're pleased to be selected for one of the awards to develop a prototype payload for the new Evolved Strategic Satellite Communications system. ESS is designed to be the successor to the Advanced Extremely High Frequency constellation of satellites, one of our signature programs that provide secure and survivable strategic communications for national leaders and tactical commanders alike. Just as our OPIR satellites, the ESS constellation is intended to provide improved resiliency, survivability, and increased capabilities. We look forward to participating in this opportunity as we work to enrich our platforms with more mission systems content, which is another key facet of our 21st Century Warfare strategy. I'll close with our Rotary and Mission Systems and Missiles and Fire Control business areas, which recently led Lockheed Martin's participation in an exercise, Valiant Shield 2020, which is a biannual joint effort for the U.S. Navy, Army, Air Force, and Marine Corps. Our combined team used a virtualized Aegis Weapon System to conduct a pioneering joint multi-domain long fires demonstration. By delivering machine-to-machine interfaces across joint force systems, this effort accelerated speed of decision making and then to action. It demonstrated a primary premise of our 21st Century war fighting strategy by networking separate sensors, communication links, and weapons across multiple platforms. The result is more effective joint all-domain operations that provides enhanced capabilities and greater effectiveness to the commander in a field of operations. These achievements highlight our strategy to help address emerging threats with 21st Century capabilities, to invest in new and innovative technologies, and leverage our signature programs to provide powerful deterrence to future military conflicts. That's our mission. With that, I'll turn the call over to Ken. Thanks, Jim. Good morning, everyone. As I highlight our key financial accomplishments, please follow along with the web charts that we've included with our earnings release today. Let's begin with chart three and an overview of our results for the year. Sales, segment operating profit, cash from operations, and earnings per share from continuing operations closed with record annual highs. We generated $8.2 billion of cash from operations after a $1 billion discretionary contribution to our pension trust this quarter. We continued our cash deployment actions, returning $3.9 billion of cash to our shareholders through a combination of dividends and share repurchases while continuing to invest in the strategic growth of the business, including acquiring i3 and record investments in IRAD and capital expenditures. We also entered into a definitive agreement to acquire Aerojet Rocketdyne in the fourth quarter, with the close expected in the second half of 2021. I will note that our 2021 outlook excludes all results associated with this transaction. While backlog declined approximately $3 billion in the quarter, due primarily to the timing of the F-35 Lot 15 production order, 2020 represented the sixth consecutive annual increase in year-end backlog for the corporation. In summary, it was an outstanding year for the business, and Lockheed Martin is well positioned for continued success in 2021. Turning to Chart four, we compare our sales and segment operating profit this year with last year's results. Sales grew 9% in 2020 compared with last year to $65.4 billion, continuing the strong performance over the first three quarters, while segment operating profit also increased 9% over last year to nearly $7.2 billion. On Chart five, we compare sales by business area with last year's results. As Jim mentioned, all four of our business areas experienced strong sales growth in 2020, led by Aeronautics and Missiles and Fire Control at 11%. Aeronautics growth was driven by development and sustainment increases on F-35 and F-16, as well as growth in advanced development programs. Missiles and Fire Control's growth was primarily from production volume in tactical strike missiles and air and missile defense lines of business. I will note that all four of our business areas achieved record highs for sales in 2020. Chart six shows our earnings per share for 2020. Our EPS from continuing operations of $24.50 was up $2.55 or 12% higher than our results from last year, driven primarily by increased volume and sustained performance. On Chart seven, we'll discuss our backlog. Driven by annual increases at three of our four business areas, we maintained a book-to-bill ratio above one for the full year of 2020. This continued backlog growth, combined with further visibility of our 2021 orders, provides additional confidence in our increased sales outlook for 2021. On Chart eight, we'll discuss the cash return to our shareholders in 2020. Subtracting our capital expenditures from approximately $8.2 billion of cash from operations, our free cash flow is greater than $6.4 billion, nearly a 6% increase over to 2019. This growth was achieved despite accelerating more payments to our supply chain than we received from the favorable DoD-initiated progress payment increases and the deferral of payroll taxes under the CARES Act. We increased our dividend by more than 8% and executed our planned share repurchases for the year with $1.1 billion in total shares retired. This brought our total cash return to shareholders to $3.9 billion for the year, or 60% of free cash flow, providing a solid returns to the shareholders in 2020. Moving on to Chart nine, we provide our outlook for the year ahead. Our outlook for sales ranges from $67.1 billion- $68.5 billion. The midpoint of this range represents nearly a 4% increase over 2020, an improvement from our October estimate, even after incorporating the impact of the U.K. MoD's decision to insource contract support for the Atomic Weapons Establishment. The $700 million sales reduction for this change is reflected in our outlook for the space business. Were it not for this decision, our estimated sales increase would have been approximately 5%, which is greater than the estimated 3% sales growth we discussed in the last earnings call. We have incorporated the known COVID impacts into our 2021 financial outlook. We will continue to work with our U.S. government customers to monitor COVID risk to our operations in the supply chain. We will continue exploring potential paths to recovery of cost impacts where appropriate to minimize future impacts. The range for segment operating profit is estimated to be approximately $7.4 billion-$7.5 billion. Our estimated FAS/CAS pension adjustment is approximately $2.3 billion. Our estimated range for 2021 earnings per share grows to $26-$26.30. The midpoint of this range represents approximately an 8% increase over 2020 results. Cash from operations is now projected to meet or exceed $8.3 billion. I will discuss this in greater detail on the following chart. Our Chart 10, we will walk through our future cash expectations, folding in the $1 billion discretionary pension payment we made last quarter. Strong operational performance drove a reduction in working capital, which allowed us to increase our cash outlook for 2021 to greater than or equal to $8.3 billion. We now see approximately $8.7 billion of cash flow from operations in 2022, increasing our three-year cash generation estimate by $900 million over our prior assessment. As we sit here now, we see 2023 cash from operations of approximately $9 billion. I should note, this outlook and trends are prior to an estimated R&D tax deduction impact from the 2017 Tax Cuts and Jobs Act change that would impact 2022 cash by approximately $2.1 billion and lower 2023 cash by approximately $1.8 billion. On chart 11, we break down our sales and segment operating profit outlook by business area. All four business areas are positioned for continued sales growth in 2021. Approximately 4% for the corporation, led by Aeronautics at 5%. Segment operating profit growth is also projected to grow at approximately 4% in the aggregate, with our largest growth in Aeronautics at 6%. Finally, on chart 12, we have our summary. We believe 2020 was an exceptional year for Lockheed Martin during these challenging times. Our team diligently worked to minimize the impact of the pandemic to our business and our supply chain. We have increased our estimates for 2021 for all key financial metrics. Our results in 2020 exceed the previous highs and have positioned us well for continued growth and value creation this upcoming year. We remain focused on cash generation and growth in 2021. We will continue to invest in discriminating technologies and strategic initiatives to deliver value to our customers while providing strong cash returns to stockholders. With that, we're ready for your questions. Brad? Our first question today comes from the line of Ron Epstein with Bank of America. Please go ahead. Thank you for the question. Jim, can you speak to your broader space strategy? I appreciate your comments on Aerojet in your prepared remarks. Can you be more specific on how it creates value, particularly in the absence of maybe a broader strategy? Is it actually part of a broader roll-up strategy? Are you guys thinking about doing more strategic actions in space, and how are you thinking about space for Lockheed Martin? Well, Ron, I came into this role with Lockheed Martin being the leader in national security space as it is. The benefit of the position of the company is that we have a strong position in the, I'd say, classic, large bus military defense satellites and intelligence community satellites. We also have the ability to go down range into medium and low orbit as well as geosynchronous orbit. The whole playing field in national defense space is open to Lockheed Martin. What we're doing in the business is we're introducing these 21st century technologies and taking advantage of that space platform. You see us winning, recently, a low orbit transport layer contract, which is a pioneering initiative of the Department of Defense to start introducing 5G and other modern networking technologies into the space domain. We're part of that. What we've been able to do is to connect our space assets already using some of those newer technologies and AI and also distributed compute into our aerospace, land, and sea forces as well, the platforms that we deploy there. We have a broad space strategy, which is to take 21st century networking, storage, and compute technologies into our space domain as really a competitive advantage versus other defense contractors that don't have that asset available to them. The second part of your question is, well, how does Aerojet Rocketdyne create value in doing this? It really goes hand in hand with our hypersonic strategy, which is part of our 21st Century Warfighting Initiative. I view Lockheed Martin's benefit or role in defense enterprise is adding velocity to it. The world is moving faster, both kinetically, if you will, and in a networking and AI perspective as well. We need to speed up. Just taking one dimension of that, hypersonic missiles and countering hypersonic missiles requires a much better, tighter integration of the propulsion system into the body of the missile. The heat generated by these hypersonic missiles is incredible, and just managing that heat and thermal issue is one of the reasons we invested in i3 as well. We are selecting what we think are the most important defense platforms and connectivity capacities for the future of warfare, and we're investing in those. Aerojet Rocketdyne is part and parcel of that investment strategy. Propulsion integration into hypersonic missile glide bodies is essential. The other benefit of us working in a more integrated fashion with Aerojet Rocketdyne is we'll be able to bring our broad engineering expertise, our capital, Our operational experience into Aerojet Rocketdyne, and bring the best of Lockheed Martin to the propulsion side of missiles and space. There are incredible synergies here. I know Ken can speak a little bit more on those later, both revenue and cost. Given my long answer, I'll stop there. We do have a question from the line of Pete Skibitski with Alembic Global. Please go ahead. Hey, good morning, guys. Hey, Pete. Hey, Jim, can you talk about kind of your updated midterm view of the DoD budget now that we have, obviously, a new SECDEF and administration, but maybe even more importantly, a change in control of the Senate? I'm just wondering what you're kind of seeing and hearing tea leaf wise in terms of the budget outlook. Thanks. Sure, Pete. The administration hasn't unveiled its actual plan or trajectory for defense budgets, but I take solace in a couple things. One is that the national security and intelligence and international affairs team that President Biden is proposing or has brought on, is experienced. They are professionals in that realm of many of them having decades of senior government experience dealing with these issues. You're going to have, we believe, a lot of continuity in policy and also in focus on how important a strong defense is for this country. I think the proposed team is a plus. Unfortunately, frankly, the threat outside against potentially United States is growing. It's accelerating too, by the way. When we look at the National Defense Strategy, it reorients itself and reorients our defense enterprise towards great power competition, and it's something you cannot just sit still and watch go by because we will be overtaken because of the aggressiveness of our potential peers. I'm taking solace in these trends as far as the defense budget goes, that you have professional, experienced people leading it for the administration, and that the threat environment is greater versus lesser. We feel that supports a stable defense budget going forward. We do have a question from the line of Joseph DeNardi with Stifel. Please go ahead. Thanks. Good morning. Good morning. Can you talk a little bit about the R&D tax impact and I guess, relative to the political backdrop, do you now see that playing out as more likely, or is there still an outcome where that's less onerous? Are you now planning differently than you were a few months ago in terms of the potential cash flow impact from that? Thank you. You bet. Yeah, Joe, I have socialized with you guys as much as we could once we concluded our view of what the tax law, the interpretation of that was. As I stated a few times now, it looks like it's about $2.1 billion in 2022, $1.8 billion in 2023, and it'll continue trending down. One of the reasons we are extremely focused on cash, you heard in my prepared comments, the amount of cash that we're generating in 2022 and 2023. I've stated we took a pause for roughly the second half of last year before we started talking to the key constituents about that impact. It is still our belief that we think there's some likelihood it will either be repealed or altered, so it just doesn't include entire research expenses, which would include our cost-plus contracts, but would be just our research and our IRAD, our research and development costs, which would not be a material impact to the outlooks I gave you. We still think there's a good likelihood that's going to happen because if you think about it, if in 2022 we have $2.1 billion less of cash, this is just Lockheed Martin. As you know, Joe, this is not just Lockheed Martin and not just A&D. This is all of industry. This is going to hit pharma hard. It's going to hit high tech hard. These are dollars that we're not going to have the ability to plow back and invest into our portfolio and into our technologies. I think that is a compelling story, and I think at the end of the day, that's going to rule the day. Now, having said that, we are still generating large amounts of cash. In fact, as you know, we ended the year in excess of $3 billion cash on hand. Right now, assuming our dividend assumptions and our share repurchase assumptions for 2021, we're going to end 2021 with over $5 billion of cash. That number's going to continue to grow, and frankly, that's a good opportunity for us to do the things Jim described from an investment standpoint, and then to continue our robust cash deployment strategy that we have historically had with our shareholders. We do have a question from the line of Hunter Keay with Wolfe Research. Please go ahead. Hi, good morning. It's actually Mike Maugeri for Hunter. Hi, Mike. Hi. According to your filings from 2009- 2017, square footage in your spaces that you leased or owned fell 8.5 million sq ft or 15% while you were still growing revenue. I know that you have an investment in Palmdale coming up, but in the next budget down cycle flattening, whenever it should come, facility consolidation, is that a lever you'd be willing to pull or able to pull again? Yeah. Thanks for the question, Mike. It's Ken. I think this year or 2020, we're going to end with roughly 72 million square feet. There's four pieces to that. One is the space we actually own, and a large share of that is going to be manufacturing space, and that's about half of our real estate. The other half is a combination of leased space, GOCO, which is government-owned, contractor-operated, much like our Fort Worth facility, and then GOGO, which is government-owned, government-operated, which is AWE. Just short term, there's a couple puts and takes. Assuming the U.K. government does take over the management of AWE, we lose about four and a half million square feet out of that 72 million square feet. When we're successful with the Aerojet Rocketdyne acquisition, I believe they have about three million square feet that we would add back. You mentioned, Mike, the Palmdale building that we're building. We also have a little bit of real estate that we're expanding in space and in RMS and in Missiles and Fire Control, that nets about 1 million sq ft. At the end of the day, we're going to be down about half a million sq ft. Now the opportunity comes. Right now, we have roughly half of our employees working remotely. Some of them are periodically coming in. We have, over the last couple of months, rolled out a plan, frankly, looking at Lockheed Martin Forward is what we call it's frankly the future of work. We are going to start looking at getting out of some of that lease space as our leases expire. You can expect us to reduce our footprint by at least a couple million square feet in the next couple of years, if not more. We'll go to more hoteling. We'll allow people that where it makes sense for them to work from home, we'll make sure this is a competitive and strategic advantage for us. We do have a question from the line of Kristine Liwag from Morgan Stanley. Please go ahead. Good morning, guys. Morning, Kristine. Jim, maybe following on with the question on a new administration, but in a slightly different way. How do you think about opportunities and challenges regarding Foreign Military Sales? With the new administration, do you see more headwind or more tailwind than before? Good morning, Kristine. As far as international business, including foreign military sales, the tendency of the people in the Biden administration and the president's own statements reiterate his view that alliances are important, that they need to be cultivated, and that they have real value in deterrence in national defense. I do think that we'll have a more open environment for FMS and indirect commercial sales to our international partners. The other benefit, you've seen it recently in the press, is that we have some fantastic and unmatched products that are in great demand and highly desired by many countries. You've seen F-16 sales coming back. F-35 was a pivotal element of the Abraham Accords, we believe, and that system is so highly desired by our allies in the United Arab Emirates and elsewhere that it actually helped bring a modicum of peace to the Middle East. Between our products and the Biden administration's stated proclivity to enhance our alliances, I think we're in a better position going forward. We do have a question from the line of Carter Copeland with Melius Research. Please go ahead. Go ahead, good morning, gentlemen. Thanks, Carter. Figure Q4 is probably the best time to ask a question like this just to get some color on it. Classified has obviously been a big component of bookings and growth and your focus. I wondered if you might, Ken, give us some more color, if you can, around how much classified grew in 2020 or some more color on bookings growth. If you can't do that, even relative growth versus the rest of the business. Just any kind of sense you can give us on the sort of seed corn projects that will fill out the revenue outlook in the next three to five years and beyond. You bet. Hey, Carter. Unfortunately, I do have to be a little cryptic, and I apologize for that, but I'll try to give you color to the best of my abilities. We have seen our classified business, from an order book standpoint and from a sales standpoint, growing faster than the corporation. If you go around the horn, I've mentioned in the past, we won a strategic program in Palmdale, where we're starting to see the benefits of multiple customers starting to want that system. In fact, we're also in a conversation with an international partner of the United States of their interest in that system. Back to Mike's question, that's the reason for the capital growth out in Palmdale. There is some other things going on out there that unfortunately we can't talk about, that I think we'll reap the benefits of. Some of them are hypersonics, some of them are other platforms. At Missiles & Fire Control, we've talked about the large development program that we won. It is progressing well. It's going to continue to grow in the future, probably as fast, if not faster than, the rest of Missiles & Fire Control. Probably the other big place to talk is space. We won a couple rather large strategic programs in 2020. We're also pursuing a few in 2021. From a sales standpoint, as I mentioned for across the corporation, growing faster than top line, than our business in the aggregate is. From a margin standpoint, margins in Aeronautics for Palmdale, the classified work right now is dilutive just by the nature of the contract types. Same with Missiles & Fire Control. These programs are going to be dilutive, growing faster than the rest of the portfolio, from a margin standpoint, going to be dilutive. The good news also is, from a contract type standpoint, they're not an impact to working capital. They'll be reasonably good cash flow. In the space business, some of these programs are fixed price, most of them are going to be cost plus as well. Just slightly dilutive to the overall portfolio. Again, I apologize, that's about as much as I could say about the portfolio. We do have a question from the line of Robert Stallard with Vertical Research. Please go ahead. Thanks so much. Good morning. Good morning, Robert. Jim, a question for you. Given the recent share price performance and the valuation on the stock and, of course, the very low interest rates here, do you think it's the best use of the balance sheet to continue to pile up more cash? Perhaps you should be more aggressive on the share buyback here. Well, we're balanced in our cash application, and always have been as a company, and it's my legacy back at my prior company as well. There are many competing parts, right? We have an opportunity set and a desire to grow, and we're pursuing that growth strategy while caring for cash deployment to shareholders. Again, to be a little cryptic, we've got all the keys on the piano at our disposal, and we're going to work our way through some decisions and opportunities here in the near future. Yeah, I'm a acolyte of the notion that when share price is below intrinsic value, that you aggressively, to the extent that you can, buy it back based on regulatory and other matters that go on. Opportunities that may be being looked at or not. We'll work our way through all of those issues, but I can assure you that if we're in the clear and intrinsic value is greater than the share price, you'll see Ken and I diving back in the market. We do have a question from the line of Sheila Kahyaoglu with Jefferies. Please go ahead. Hi. Good morning, Jim and Ken. Morning, Sheila. Just given 3%-4% EBIT growth this year versus 9% in 2020, how do you think about some of those drivers as it relates to your $9 billion OCF target in 2023? Is it sort of steady as she goes in terms of your earnings outlook? I guess the age-old question of, is there an opportunity where earnings growth exceeds revenue growth going forward given decelerating budget environment? Hey, Sheila. Hi, good morning. I hope you're doing well, you and your family. Thank you very much. Yeah. If you look at our cash, and as you noted, we see $8.3 billion cash from ops in 2021, $8.7 billion before the tax impact due to R&D in 2022, and then $9 billion in 2023. Right now, we see margins pretty steady at 11%. Most of that is I've talked to Wall Street about our focus on cash. What we've called it is a culture of cash, where generally, over the last couple of years, it's not just, frankly, a balance sheet issue, it's not the finance community just to solve, it's the entire corporation, where, say, production operations understands the consequences of making or missing deliveries and how that impacts cash. We see more opportunities going forward, managing the balance sheet, specifically contract assets and inventory, and ensuring that if they're going to grow, they're growing at the most efficient way possible. Also, as Jim mentioned, we see opportunities. I'm not going to talk about specifically FMS, but probably more direct government sales where there's an opportunity for us to get cash advances. To answer your second part of your question, we do see some opportunity, though, to be better than 11%. That's specifically our programs that will start to mature. Take F-16, we're generally in the beginning of the production cycle again. We're going to deliver eight airplanes in 2022, and then we'll get up to significant double-digit deliveries in 2023 and beyond. There is an opportunity for us to have margin improvement there. F-35. Everybody wants to talk about F-35. We do still think there's opportunities there. From a margin standpoint with production, we've talked to you about the PBL concept, the performance-based logistics concept that we've had, that we do think there's some margin opportunity there for industry, assuming we perform, assuming we hit the critical service level agreements that we want. Hypersonics will soon get out of development and hopefully go into limited rate production and production that will help us. All the helicopter programs that we've talked about, you'll start to see CH-53K moving out of development into production. Presidential helicopter, of course, is moving into production. You have combat search and rescue that'll move into production. Those are just a couple examples, Phil. I think that'll give us an opportunity to enhance our margin over time. We do have a question from the line of Doug Harned with Bernstein. Please go ahead. Thank you. Good morning. Morning. Jim, earlier you said that a goal would be to enrich your platforms with mission systems content. I have to say, this, to me, sounded like something I could have heard back in the Vance Coffman, Norm Augustine days. Something that didn't really work out well because of DOJ concerns, DoD concerns. Now, in trying to do that, and then also, you talked about the advantages you could get from the Aerojet Rocketdyne acquisition, and then Raytheon with the acquisition of Blue Canyon. They make buses that do work for you guys, for L3Harris, for Northrop Grumman. Do you think we're seeing a different structure to this industry going forward with much more vertical integration? Can you comment on this from sort of a philosophical standpoint? Sure, Doug. If you go all the way back to the primary notion that we're back into a world of great power competition, it's important to look, I think, beyond our own defense industrial base structure, but outward to those of the competitors, which are China, Russia, Iran, and North Korea, for example. Compare our capabilities if I'm in government, comparing our defense industrial base capabilities to those of the peer group. How does China operate its defense industrial base? How does it organize it, and what are the capabilities and velocity, again, that comes from that? From that perspective, my view would be that vertical integration concerns from a classic antitrust perspective are dwarfed by the lack of velocity and inability to integrate, and added cost, frankly, that comes from the existing defense industrial base structure, that it's stratified with a supply chain that's quite fragmented. I think it's better for the country and for the defense enterprise to enable industry to make logical proposals for bringing in the mission systems, if you will, the supply chain that goes into major platforms into a more integrated organization. I think that's the philosophical basis. On the other hand, we cannot predict the decisions of individual regulators and those coming into office. I do think that it's critical that those decisions look through the lens of great power competition and how we compare to the defense industrial base, certainly of China. We do have a question from the line of Noah Poponak with Goldman Sachs. Please go ahead. Hi, good morning, everyone. Morning, Noah. How much revenue is your hypersonics franchise generating in the 2021 outlook? How much revenue could your hypersonics franchise be generating closer to the middle of the decade? Okay. Noah, I'll take that. You do like these long ball answers, I'll do the best of my abilities on the second part. If you look at our hypersonics portfolio, through 2020, our total order book was north of $3 billion. We generated about $1.2 billion in hypersonic sales in 2020, think of that as mostly development and cost plus programs. Actually, we had two risk retirements at the end of the year, our programs are performing. For 2021, Noah, the best of our abilities right now, we see hypersonic sales being about $1.5 billion. Still dilutive margins just based on contract type and the type of work that's being done. We're going to have a handful of these programs. We'll have first launch, continued demonstration of capabilities this year or next year. As I've stated in the past, you'll start seeing some of these programs neck down as you saw last year, where we had one program terminated, but we actually saw the funding start to go to some of our other platforms. For us, really not a harm, and it intuitively made sense. By the middle of the decade, it's conceivable that that number could be closer to $3 billion. You'll start to see some of these limited rate production programs happening. Some of these programs will actually start going into full-scale production. It's conceivable that our sales will more than double by the middle of this decade. Also, the contract type will start changing, and they'll either be fixed price incentive or fixed price contracts. We do have a question from the line of Richard Safran with Seaport Global. Please go ahead. Jim, Ken, Greg, good morning. Hey, Rich. I wanted to ask you about the international. We've known the Trump administration went to extensive measures to promote U.S. defense exports. I'm just wondering, maybe you could dovetail off of the comments you have made coming from your government affairs people about the new administration. Do you see any changes with how the new administration is looking at exports? Do you think there's going to be continued growth there? Do you think this could be a benefit to you or to the international sales of air defense equipment? Richard, it's Jim. Again, it's too soon to tell what individual policymakers are going to do since they haven't been named or are confirmed in large part yet. If you go back to first principles of the administration, based on candidate Biden and now President Biden's campaign, jobs and economic recovery are incredibly important to him and to his administration. There are no better source of jobs than international military sales for this country, and in large part because these tend to be engineering, STEM, high salary, and the manufacturing jobs, also high wage, reliable, dependable jobs with companies that have strong benefits, et c. If jobs in the economy are important, the promotion of international defense sales, one would surmise, would also be important. From that perspective, I expect that we're going to get strong support, let alone from, as I mentioned earlier, the interest and desire to have increased collaboration and cooperation with our allies. As an ex-pilot myself, I can tell you that there's no better way to get a tighter bond with an ally than sell them jet aircraft, fighter aircraft. All the way back in the mid-80s when I was in pilot training, we had Saudis in our class, for example. When I was at Pratt & Whitney, we built an F100 engine overhaul and repair shop in Saudi Arabia that further cemented our collaboration with that country. It's just two tiny examples. You've got, again, the training collaboration. You've got industrial collaboration. You're doing exercises together. You're using the same cockpit avionics. Just goes on and on how you can increase your alliance stickiness, if you will, with major defense sales. I think on those two dimensions at least, that we would expect some positive momentum. We do have a question for the line of Myles Walton with UBS. Please go ahead. Thanks. Good morning. Morning. Just a quick one on space. It looked like there was some implied margin erosion or compression sequentially into 2021, but I would've thought that AWE would've helped that. Is there something else that moved around in the mix that you would point us to? Sure. Hey, Myles, it's Ken. Yeah, the big driver is if you look at United Launch Alliance, due to the mix of launches, we're going to see less profit next year at ULA than we had in 2020. You're right. Unfortunately, that more than offsets the AWE dilution. We do have a question from the line of George Shapiro with Shapiro Research. Please go ahead. Yes. I wanted to go through some of the margins, Ken, in Aeronautics. You had this increase in C-130 profits and didn't look like revenues changed much, otherwise you would've spelled it out. Then you had a reduction in the F-16 margin, and it looked like you had to have an increase in the production margin on the F-35 to get these big an increase as you had. I just wondered if you could clarify that a little bit more. Sure. Hey, George, I got a clarifying question for you. Are you talking about fourth quarter of 2020 or you want to talk about 2021? Talk about the full year 2020. Oh, full year 2020. Well, it probably just makes sense to talk about the fourth quarter because that's the most current information. Just in aggregate, I'll talk top line and bottom line for Aeronautics. We saw development top line increases. Generally, they were mid-single-digit increases, that was driven by follow-on modernization. We're still seeing a lot of success there, a lot of demand by our customer set for increased technology on the platform. Production was down in the quarter, year-over-year in the fourth quarter, George, that was mid-single digits as well. That was probably more of a timing issue than anything else. Sustainment, we saw strong growth, we're going to see strong growth into 2021. That'll be the fastest-growing piece of F-35 in 2021. We saw strong increases on F-16. You're starting to see production kick in, and you also had strong sustainment. C-130 sales were up 3%, so think of that as low single digits. ADP, the Skunk Works, is strong double-digit increases there as well. I'll go to profit for you. For the quarter, we were up 7%, roughly 10.8 margins versus 10.6. F-35, to your point, was down. That was driven by production. We had high single-digit margins. It was almost 10%, but down a little bit versus last year, which were stronger double-digit margins. That was just, frankly, driven by less risk retirements in the fourth quarter of 2020 than 2019. Sustainment was up a little bit. F-16 margins for the quarter, George, were up. Both were double-digit margins, but fourth quarter this year, we were almost 20% margins on F-16. That's because we had a risk retirement on an international sustainment program. C-130 margins were up in the fourth quarter as well, and that's because we had risk retirements on our FIOC four and our FIOC programs. ADP was up, and most of that was volume, but we actually, good news, had some risk retirements there as well. Hopefully that helped give you some color. Hey, Brad, it's Greg. Before I hand it off to Jim, I've been informed that some listeners might not have heard the forward-looking statement at the beginning. Let me just reiterate for a minute that statements made in today's call that are not historical fact are considered forward-looking statements and made pursuant to the safe harbor provision. Please check our SEC filings for more discussion on the risks and historical facts. With that, I'll turn it over to Jim for closing comments. Okay, Greg, thanks. Our business performed exceptionally well in 2020 under extremely difficult circumstances. Again, I want to thank the men and women of Lockheed Martin for stepping up to that. We delivered outstanding program execution and operational performance for our customers and strong financial performance for you, the stockholders. Our robust backlog, our broad portfolio, and our long-term strategic focus have us well positioned for continued growth, we think. We thank you again for joining us on the call today, and we look forward to speaking with you on our next earnings call in April. That concludes our call today, Brad. Thank you. And ladies and gentlemen, that does conclude your conference for today. Thank you for your participation and for using AT&T conferencing service. You may now disconnect.