BUSINESS OVERVIEW
We are a global security and aerospace company principally engaged in the
research, design, development, manufacture, integration and sustainment of
advanced technology systems, products and services. We also provide a broad
range of management, engineering, technical, scientific, logistics, system
integration and cybersecurity services. We serve both
The following discussion is a supplement to and should be read in conjunction
with the accompanying consolidated financial statements and notes thereto and
with our Annual Report on Form 10-K for the year ended
COVID-19
The COVID-19 pandemic continued to cause business impacts in the first quarter
of 2022 primarily driven by the emergence of the Omicron variant in late 2021
with a resulting increase in COVID cases in early 2022. During the first quarter
of 2022, our performance was adversely affected by supply chain disruptions and
delays, as well as labor challenges associated with employee absences, travel
restrictions, site access, quarantine restrictions, remote work, and adjusted
work schedules. Attendance for employees required to be onsite has fluctuated
based on pandemic developments. We are actively engaging with our customers and
are continuing to take measures to protect the health and safety of our
employees by encouraging them to get vaccinated, including booster shots. In our
on-going effort to mitigate supply chain risks, we accelerated payments of
The ultimate impact of COVID-19 on our operations and financial performance in future periods, including our ability to execute our programs in the expected timeframe, remains uncertain and will depend on future pandemic-related developments, including the duration of the pandemic, potential subsequent waves of COVID-19 infection or potential new variants (e.g. Ba.2), the effectiveness and adoption of COVID-19 vaccines and therapeutics, supplier impacts and related government actions to prevent and manage disease spread, including the implementation of any federal, state, local or foreign vaccine mandates, all of which are uncertain and cannot be predicted. The long-term impacts of COVID-19 on government budgets and other funding priorities, including international priorities, that impact demand for our products and services are also difficult to predict but could negatively affect our future results and performance.
For additional risks to the corporation related to the COVID-19 pandemic, see Item 1A, Risk Factors of our 2021 Form 10-K.
Termination of Agreement to
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Table of Contents INDUSTRY CONSIDERATIONSU.S. Government Funding
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CONSOLIDATED RESULTS OF OPERATIONS
Our operating cycle is primarily long-term and involves many types of contracts for the design, development and manufacture of products and related activities with varying delivery schedules. Consequently, the results of operations of a particular period, or period-to-period comparisons of sales and profits, may not be indicative of future operating results. The following discussions of comparative results among periods should be reviewed in this context. All per share amounts cited in these discussions are presented on a "per diluted share" basis, unless otherwise noted. Our consolidated results of operations were as follows (in millions, except per share data):
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