OVERVIEW
We are an agile global aerospace and defense technology innovator, delivering
end-to-end solutions that meet customers' mission-critical needs. We provide
advanced defense and commercial technologies across space, air, land, sea and
cyber domains. We support government and commercial customers in more than 100
countries, with our largest customers being various departments and agencies of
the
The following Management's Discussion and Analysis ("MD&A") is intended to assist in an understanding of our financial condition and results of operations. This MD&A is provided as a supplement to, should be read in conjunction with, and is qualified in its entirety by reference to, our Condensed Consolidated Financial Statements (Unaudited) and accompanying Notes appearing elsewhere in this Report (the "Notes"). In addition, reference should be made to our audited Consolidated Financial Statements and accompanying Notes to Consolidated Financial Statements and Item 7. "Management's Discussion and Analysis of Financial Condition and Results of Operations" included in our Fiscal 2021 Form 10-K. Except for the historical information contained herein, the discussions in this MD&A contain forward-looking statements that involve risks and uncertainties. Our future results could differ materially from those discussed herein. Factors that could cause or contribute to such differences include, but are not limited to, those discussed below in this MD&A under "Forward-Looking Statements and Factors that May Affect Future Results."
In international markets, the
Even with the increases in expected
Economic Environment
The macroeconomic environment continues to present challenges, which have
impacted and may continue to impact our future results. Rising inflation in the
19
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While we have consistently followed the practice of adjusting our prices to
reflect the impact of inflation on salaries and fringe benefits for employees
and the cost of purchased materials and services, our fixed-price contracts
could subject us to losses in the event of cost overruns or a significant
increase in or a sustained period of increased inflation. Management has worked
to mitigate supply chain and labor market challenges, with modest improvements
in the supply chain sequentially for
KEY DEVELOPMENTS
Effective
•Integrated Mission Systems, including multi-mission ISR systems; integrated electrical and electronic systems for maritime platforms; advanced EO/IR solutions; fuzing and ordnance systems; commercial aviation products; and commercial pilot training operations; •Space & Airborne Systems, including space payloads, sensors and full-mission solutions; classified intelligence and cyber; avionics; electronic warfare; and mission networks for air traffic management operations; and •Communication Systems, including tactical communications with global communications solutions; broadband communications; integrated vision solutions; and public safety radios, system applications and equipment.
The following business divestitures and asset sales were completed in the three
quarters ended
•OnApril 29, 2022 , we completed one business divestiture, the results of which are reported as part of ourIntegrated Mission Systems segment through the date of divestiture, and onMay 31, 2022 , and we completed the sale of certain assets from ourIntegrated Mission Systems segment; •Electron Devices business, definitive agreement entered into onJuly 2, 2021 , classified as held for sale during the quarter endedJuly 2, 2021 and divested onOctober 1, 2021 , the results of which are reported as part of other non-reportable businesses through the date of divestiture; •CPS business, definitive agreement entered into onMarch 1, 2021 , classified as held for sale during the quarter endedApril 2, 2021 and divested onJuly 2, 2021 , the results of which are reported as part of other non-reportable businesses through the date of divestiture; •Military training business, definitive agreement entered into onFebruary 27, 2021 , classified as held for sale during the quarter endedApril 2, 2021 and divested onJuly 2, 2021 , the results of which are reported as part of other non-reportable businesses through the date of divestiture; and •VSE disposal group, definitive agreement entered into onFebruary 23, 2021 , classified as held for sale during the quarter endedJuly 3, 2020 and partially divested onJuly 2, 2021 , with the remainder divested onJuly 30, 2021 , the results of which are reported as part of other non-reportable businesses through the date of divestiture.
See Note B - Business Divestitures and Asset Sales in the Notes for additional
information regarding asset sales and businesses divested for sale during the
quarter and three quarters ended
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