Good day, and welcome everyone to the Lockheed Martin Third Quarter 2010 Earnings Results Conference Call. Today’s call is being recorded. (Operator Instructions) At this time, for opening remarks and introductions, I would like to turn the call over to Mr. Jerry Kircher, Vice President of Investor Relations. Please go ahead, sir.

Thank you, Jevon, and good morning, everyone. I’d like to welcome you to our third quarter 2010 Earnings Conference Call. Joining me today on the call are Bob Stevens, our Chairman and Chief Executive Officer; and Bruce Tanner, our Executive Vice President and Chief Financial Officer. I’d like to remind you the Statements made in today’s call are not historical fact or considered forward-looking statements and are made pursuant to the Safe Harbor Provisions of Federal Securities law. Actual results may differ. Please see today’s press release and our SEC filings for a description of some of the factors that may cause actual results to vary materially from anticipated results. We have posted charts on our website today that we plan to address during the call to supplement our comments. Please access our website at www.lockheedmartin.com and click on the Investor Relations link to view and follow the charts. With that, I’d like to turn the call over to Bob.

Thanks, Jerry. Good morning, everyone. As our release this morning outlined, operational performance continued at a good pace during the third quarter and we achieved solid financial results, including sales expansion of 6% and continued exceptional cash flow generation. Our focus on operating cash has been the center piece of our strategy that enables sustained investment in the business and sustained returns to shareholders through sharing purchases and increases in our dividend, and I think this strategy is working well as evidence by our ability to increase the quarterly dividend by 19% this quarter, extending our double digit dividend increase 3 consecutive years. Let me start with an update on matters relating to the external environment which we’re operating in, and address some emerging trends. When we last spoke in July, I highlighted what we termed the new reality that we’re facing. Greater security means emerging with fewer resources available to meet them. To address this environment the Defense Department has continued to clarify its objective of implementing major changes in the way equipment services are procured from contractors with a goal to save more than a $100 billion over the next 5 years, from overhead and other accounts without negatively affecting war fighters. Once realized these savings would be invested in new equipment and applied to reserve troop strength, even as military budgets flatten in the future. On September the 14th, under Secretary Defense Acquisition, Dr. Ash Carter, provided additional detail into 23 areas of improvement to make the department’s procurement offices and Defense contractors more efficient. These actions were broadly characterized into 5 majority areas targeting affordability and controlling cost growth instead of [inaudible] productivity and innovation in industry, promoting real competition, improving trade craft in services acquisition and reducing non-productive processes in bureaucracy. Within each of these…

Thanks Bob. We posted charts on our website to help with our discussion today, and at this time I’d encourage you to open the charts and follow along with me as I make my comments. Let’s begin with chart 3, a summary of significant of portfolio shaping and affordability actions we took this quarter. First we’re pleased with the value we’ll receive with the announced sale of our EIG business for $815 million. And as a reminder, with announced sale, the operating results for EIG have been classified as discontinued operations. As a result, we’ve lowered our 2010 sales and segment profit outlook by the amounts we expect EIG to contribute. Other than this movement to discontinue operations, our guidance remains unchanged for the year. And finally, we do anticipate that this sale will close by year end. As for PAE, as Bob said, we will expect to close that transaction later this year or early in 2011. And moving down the same chart, to our voluntary executive separation program we have about 600 employees participating in the program and I’m sure you saw our AK announcing the $178 billion pretax charge for the program. Over the next few weeks or months, we’ll be working with our customer to agree on the timing of recovery of the program cost in the amount of recurring savings that will generate going forward. We would expect to recover majority of the program cost in the future as we price new business. You can now turn to chart 4 in our third quarter sales summary. Overall the corporation grew 6% in the quarter. Electronic Systems had the strongest growth at 10%, due primarily to the third quarter deliveries of our Persistent Threat Detection System or PTDS in the quarter. This contract began earlier this…

Thank you. (Operator instructions) And our first question comes from Rich Safran with Buckingham Research. Richard Safran – Buckingham Research Group, Inc. : Hi. Good morning.

Hi, Rich. Richard Safran – Buckingham Research Group, Inc. : I wanted to ask you first, some metal supplies have been talking about the increasing demand and they’re raising prices for some strategic metals and specifically I’ve been noticing it for stainless titanium alloys and nickel alloys. I was wondering if you could comment on how this would impact your cost near and long term. And also in your comments if you would, would you talk about any compactly constraints you might be seeing?

Rich, like me take a shot at it and then I’ll see if Bob has anything to offer after I finish. It may surprise some folks but in all honesty, we don’t buy a lot of the commodities and the metals and so forth that we use to build our products. As it turns out, we tend to aggregate the demands for that – for those products and commodities and instead we let a lot of our suppliers use those aggregated demands to purchase those materials. And so what we tended to do in the past is establish some fairly long-term purchase agreements that provide us stability in both the supply as well as the pricing. But think of that ability to aggregate the overall supply amongst a lot of different suppliers in our bases bring us the best prices. And I’ll tell you, relative to the specifics you cited, I’m not aware of any issues with our ability to acquire or price fluctuation or that it’s out of the ordinary of what we’re seeing today.

And Rich, let me expand just a bit on Bruce’s comment. However, notionally we’ve had discussions with the Department of Defense Acquisition Team as we’ve extended these conversation about affordability initiatives in thinking through the prospect of increasing material prices and the greater need for us to act like a strategic buyer. And that’s why this notion of long-term contract, long-term predictability, multi-year procurements have been advanced by – I think the industry community broadly because that will allow us to get the best possible prices really in any set of market conditions, even if there were to be some upward price pressure. Also, you asked the question about capacity constraints here. We planned our program in a flexible way so we’re not experiencing any capacity shortfalls today at all. And on our major program, take a C-130 as an example, we’ve been able to go from 16 to 26 to approximately 36 based on optimizing the investment that we’ve made. To date, we’d be able to do the same thing on the Joint Strike Fighter. We think our Littoral Combat Ship offering has been thought through in a similar set of circumstances. So we try to balance our view about the capacity in assuring that we have gated investments. We call them gated, or we want to get a greater knowledge before we make entirely speculative investments about what the future horizon will look like. We try to build as much flexibility in the capacity that we have. And we also have thought through the prospect of potentially building down. If there were more headwind, can we build down and still not lose the bubble on affordability or profitability. The F-16 line is probably a good historical example of the ability to scale up as global circumstances change and customers – recapitalize needs vary and then to build down and build back up. So the lessons that we’ve learned there we try to populate throughout the company.

Our next question comes from Jason Gersky with Citi Investments. Jason Gersky – Citi Investments: Hey. Good morning, everyone. I was just wondering if you could offer a little bit more detail on the Allred Four Contract. Particularly maybe some commentary about the longer-term margin profile and how you envision revenues and margins ramping over the next several years taking into consideration this contract; just particularly relative to the way you’ve talked about the program in the past.

Yeah, Jason, I’ll jump in here. And Bob gave me some other relatives and is prepared a march relative to the contract structure that we agreed to. I would characterize it as still enabling us to have the kind of margin expansion on the product program that I’ve been talking about in the past. I think in past calls I’ve talked about the thought that we’d like it to be able to achieve about a 10 percent Ross about the time we hit the middle of this decade or when we hit full – full-rate production profile in our product contracts. And I still think that’s the case. I still think this contract enabled us to do that. We wouldn’t have agreed to it if we didn’t think we could execute to it. It’s probably a little tighter in terms of the risks elements of it on the Share Line and the sealing that I would have otherwise liked. But I think that puts a little bit of a premium on us to focus on our execution, but I think we’re capable of doing that.

And Jason, on the other side, a significant and important element when we move from costs reimbursable to fixed-price environments is assuring we’ve got a known configuration that the requirements are stable. So there’s additional discipline in the process and that’s not just on our side, it’s on the government side. And not withstanding Lot-4, but let me give you just a sense about this movement from cost-type, to fixed-price type contract. There’s less flexibility overall in a fixed-price type of contract and that requires some behavioral changes. You know, I’ll make up an overly simplified illustration. It doesn’t really have much to do with Lot-4, but in a cost-reimbursable environment, if we agree that we are going to meet every quarter and the government would say we’d rather meet monthly, our first response is where, and when and what subject matters experts should we bring. Under a fixed-price contract, we will say we’re going to need to submit a change order to you to change the contract budge baseline to now include provision for the costs of meeting monthly. That’s a behavioral difference. So I think we’re all trying to go into this environment with our eyes open. As Bruce said, the wristband gets a little tighter on our side; the discipline, I think, gets cranked up on both sides. We lose a little flexibility but we think the advantages of taking on modestly more risk or diminishing flexibility will be worn out by improved performance on the program and that’s what we’re all focused on.

Our next question comes from the line of Doug Harned, Stanford Bernstein. Doug Harned – Stanford Bernstein: Yes, good morning. In the release and your discussion on 2011 earnings, there’s a sentence that says that you’re seeing – the industry is seeing delays and cancellations in programs and it also – adjacent markets are turning out to be less mature than anticipated. I wonder if you could talk about this a little bit. In particular, if you look at where the overall budget is right now and you look at the 2011 budget, it’s actually a pretty strong budget. So think about that in terms of a lot of delays and cancellations. I’m trying to understand how you fit that together. And then on the adjacent side, what are the adjacent markets that you are seeing as more difficult right now?

Doug, let me start the conversation and then I’ll turn it over to Bob. You know, last year about this time we provided you guidance, not just for the year 2010 expectations, we tried to get a little longer-term view of what we’re expecting to see and I think during that call I talked about sales in 2011 as kind of being at the mid-single-digit level. We’re now – we’re now talking about more like the low-single-digit level. And in the items that you mentioned from the press release, the reasons for that diminished outlook – I’ll give you a couple of examples maybe to highlight each of what you’re talking about there. One on the delays, think of hurdles like the Littoral Combat Ship, which we are assuming in our numbers of 2011 as a win when we talk about the growth rate we’re seeing over 2010. But we had expected when we were talking last year for that award to have been sometime in early summer of this year. We’re now talking about a November award potentially. So think of that being, you know, almost six months of delay there. It doesn’t change obviously the overall expectations of sales for the Littoral Combat Ship, but it does – it does change the phasing. So we’re going to shift some of those sales to the right and push some of the early ramp rate in 2011 over into 2012. The same exact thing is happening with the FAD, production loss. We’d expect to get those earlier in the year. It looks like they’ll be later in the year and it’s the same kind of delayed ramp up in the higher FAD production that we’re seeing there. On the cancellation side, the best example I think I can give to…

Yeah. I would tell you that obviously we only speak for ourselves, but I’m going to guess we’re not the only one speaking to the predominant of the [inaudible] as described to you. Even as early as April of 2009 when Secretary Gates had a number of program decisions and announcements, some of which impacted our company and some in which impacted others, we began to communicate to you and others our sense and the praise we viewed in this new reality. And big part of that new reality was the fiscal challenges that our nation’s facing and the need to adapt, just some fiscal discipline. As a result, you know, we’re seeing the – I think some building of the pressure on that horizon. Bruce gave you some illustrations about delays and cancellations. As we watch the Bills work their way through the congress, I think there was a level of interest that drew our attention in the Senate Appropriations Committee mark because they talked about the number of programs. I even think that if I get the math right, I think the number’s 41 programs they may have described as being delayed in some fashion. The result of which was they’re withholding some funding to see if those delays were going to be recovered or whether they were going to be persistent. So I think there’s a broader observation of the process slowing down a little and that’s why among the affordability initiatives that Dr. Carter [released], we are keenly interested in adding our full prodded voice and any experience we have in our energy and focusing on shortening the cycle time. Not only because it will help remedy the discussion that Bruce just had with you now about the onset of revenue recognition, but we pulled out…

Our next question comes from the line of Joe Nadol with JP Morgan Securities. Joseph Nadol – JP Morgan Chase & Co. : Hi. Good morning, guys. My question is on cash deployment. You had very strong cash flow in the quarter and you effectively upped your guidance pretty significantly for the year ex-pension. But you made some significant changes with regards to deployments. Big extra deployment into the pension fund, raised the dividend very significantly and you cut back pretty significantly on share purchase. Since there’s a zero-sum gain, I was wondering if you could offer us some insight into how you’re thinking about those three buckets relative to each other going forward. Also, any – if you can shed me a light on what the net proceeds from EIG should be and how you’re going to use those proceeds.

Thanks, Joe. I’ll tackle this one. You asked about pension, dividend, share repos and the actions we took in the quarter and what that means for the future. I’ll start off with pension just to begin with because that’s a big moving piece of the whole discussion. As I said in my prepared remarks, we are now assuming that cash harmonization is effective in 2012 versus 2011. That actually has the effect of lowing the CAS number in 2011 from what we expected. That’s one of the contributors to the additional FASB CAS GAAP relative to ETS that I talked about earlier. The discount rates have – are significantly lower and I don’t think that’s a great surprise to anyone. They’re lower now than they were at the end of the last year. And we still need to see how much change we’re going to see between now and the year end. Relative to the $2.2 billion, you know, we might give a little bit of tutorial relative to the risk of funding requirements for pension plans. The ERISA, which obviously is the law that governs our pension plans in general, basically treats the discount rate and difference and either our FAS evaluation or our CAS in that discount rate for ERISA is for all intents and purposes, kind of set now going into next year. So think of it as a 24-month moving average. So we kind of know what that is now and with the contributions to get us to the 2.2 and where we expect our asset returns to be by the end of the year, we think that this additional contribution amount will get us to the 80 percent funded level at the start of 2011 relative to an ERISA measurement perspective, which gets us in…

Our next question comes from Myles Walton from Deutsche Bank AG. Myles Walton – Deutsche Bank AG: Thanks. I did have a quick question I think on this C130J and looking at the air mobility commentary in the discussion. It was one of the first times of seeing their mobility even come down on a year-on-year basis and also given how many more you delivered in the quarter year-on-year. I’m just not sure how to read that. Can you help me with that one?

Yeah, Myles, this is Bruce again. I’m sorry, one of the reasons for that, the year-over-year change was we’re kind of getting towards the tail end of the original multi-year contract and as we typically get towards the tail end of contracts we do have more profit adjustments recognizing the performance on that contract. That’s exactly what we’ve experience in this scenario last year. So we had more inflection-to-date pickups. As we start into kind of the new contracts post-multiyear, with the volume coming there, as you point out, there are higher numbers of aircraft. So we’ve not yet had the kind of experience on these contracts early on to have – to warrant the sort of inflection to date adjustments as we did with the prior multi-year contract. Myles Walton – Deutsche Bank AG: Okay. And how much of a headwind is that on a run-rate margin basis?

Well again, it’s going to be quarter to quarter dependent because we didn’t have those sorts of inceptions-to-date step ups ever quarter last year. You know, as I look going forward in 2011, I wouldn’t expect to have a significantly, you know, you call it a headwind going forward for C-130, I wouldn’t expect to see that from 2010 to 11. So that’s kind of thinking of it as the run rate we’re doing now is about the run rate we’re going to expect to have in 2011.

Our next question comes from the line of Noah Poponak with Goldman Sachs. Noah Poponak – Goldman Sachs: Hi. Good morning. Question on the margins. I guess it looks optically like if you were calling for modest revenue growth in ’11 but segment operating income flat, that that would imply margin pressure in the business. Is that right and where are you seeing it and why?

That’s actually what I tried to see in the prepared remarks, exactly as you just said, Noah and you know when, again, I’ll harken back to when we spoke a year ago this time and I did give longer-term guidance for both 2011 and 2012 at that time. I thought at that time that we were trending more towards going into margins in the, you know, 10, 10 ½, upper-10 range and I still think even though sales have come down a little bit, with the portfolio changes we’re seeing, the higher F-35 sales stroke, you know, just as an example, I’m still seeing next year the F-35 market is going to grow some 20 percent above the level it is in 2010 for instance. So it is bringing with it lower margins over all and with that kind of portfolio shift, I do expect the margins to come down somewhat from where we are today, down into the tens probably in 2011. Noah Poponak – Goldman Sachs: When you think about the margin longer term, you know, we hear a pretty concerned effort out of the Pentagon to transfer more risk to the contractor and make it more about performance and not up-front contracting. How concerned are you internally that that pressures defense contractor margins?

This is Bob Stevens. You know that, the answer to that is it all depends, but right now we’re not concerned. What we – if you look historically, we’ve had a good number of fixed-price type contracts where we execute very well. So the discussion in my mind is not whether or not risk is transferred or the contract type is cost reimbursable, fixed prices. What are the underlying conditions in behaviors that align with the contract type? There is no magic in a contract type. The magic is in alignment and that’s not just from our point of view, that’s the government’s point of view. So as a matter of professional discipline on our part, we’re going to continue to advance discussions that say, if we want to undertake a different kind of contracting architecture here, let’s also undertake all the responsibilities that are necessary to align the conditions that make that contracting methodology successful for you, the government and us the industry. And so far, I believe we’ve been able to do that and I tried to highlight a little of Lot-4 F35. There will be some behavioral changes and there’ll be some discipline, and there will be some reduction in flexibility. We won’t jigger around the configuration, we’ll be – we’ll have a tighter bandwidth on performance all around. And I believe the government is up for that and we are certainly up for that and we know how to do this. We have the breadth and depth of our portfolio has been such that we’ve got lots of experience across the company and what we’re working on now is to make sure that we’re populating that experience across the company so that perhaps if there are organizations who in the recent past have not had familiarity with fixed price incentive type contracts, they’re becoming a lot smarter about fixed-priced contracting environments today as we think out government customers would want us to be so that we don’t fail to meet the execution responsibilities and commitments that we make. So I mean, it is a concerted focus here. We’re not overly concerned about it. We can believe we have defined financial returns and generate value there as we have to deliver commitments under contracts to government customers.

Jevon, this is Jerry. Because we’ve got a bunch of people in the queue still, if we could extend the call to 12:15, let’s continue on and work through the open queue.

No problem Sir. And our next question comes from George Shapiro with Access 342. George Shapiro – Access 342: Yeah, Bob. I was wondering if you could provide for that F-35 contract the target price and the target margin and also how that relates to either what’s your experiencing now on [L-rip3] or the implied learning curve that you’re expecting to get just so we can make some judgment on how achievable this might be given the tighter ranges that you talked about on sealing.

Yes, George, I’m not going to give you the target price and I’m not going to give you the target profitability or the margins. And I’m sure you’ll do a good job at making estimates about our performance of the absence of that data. I will tell you we have about a 74% learning curve expectation on production. We’re about walking down that curve. And of course there’s lots of negotiations and even in the back of my mind George, some competitive landscape of the F-35 as you look broadly around the globe, we think there’s going to be strong international interest and I’m really not leaning forward in giving very specific pricing and other information about it. That’s the only reason I don’t want to offer it at this time. But I will tell you, as we look at the transition from the FDD program into production, if we look at the movement of cost, if we look at the likely returns, the cost reimbursable environment through the transition production and the transition fixed price contracting, I tell you, this is in line with historic standards, save for maybe two observations that we did share with you and others, a 50/50 share line in Lot-4 is a little more aggressive and 120% sealing is a little tighter, but then we believed we had a constructive and valuable discussion about the content of the program, the configuration of the aircraft, what’s expected to be delivered. And those are the areas that tend to put pressure on cost. When you don’t have as thorough an understanding about content or what is exactly deliverable – we’ve tried to take that on earlier with full cooperation from our customer because our customer wanted us to step up and embrace some of this fixed-price incentive contract modeling. So it isn’t again, that we say no, we can’t do that – our viewpoint honestly is we can do a lot of things provided that conditions are consistent to warrant the contracting methodology and the architecture in the contract.

George, I’ll offer up on other maybe observation for you. First off, if I go back to my early days when I started my career in Fort Worth working the F-16 program, every single F-16 contract in production was an FDI contract. So we’ve had this experience now for, in my case, almost 30 years. And as I look at the F-35 in particular, you know, not to directly answer your question relative to target price and margins and so forth, but I found one of the interesting things as I looked at it is you take a look at the cost, the target cost on the L-rip 1 aircraft, so that was for two aircraft and compare that with the target cost of L rip-4, the cost of the L rip-4 aircraft are about half as much as the cost of the L-rip 1 aircrafts. So think of that in 31 aircrafts down the product line, we’ve lowered the cost amount on those aircraft by half and the other aspect as I look at from the risk perspective Bob described as far as working this contract is, you know, I very much view the L-rip 4 contract is the risk we’re taking on is continued, I’ll say performance down the learning curve. I think we have a good understanding between ourselves and the government relative to concurrency risk with new findings in the SDD contract, the development contract such that that will not sort of bleed over onto the L-rip 4 contract. And it’s because of that, that I ultimately felt comfortable signing the – or getting the agreements with the contract with the terms that we have.

Our next question comes from Peter Arment with Gleacher & Company Peter Arment – Gleacher & Company: Good afternoon Bob. Bob, could you just give us maybe some more color on this U.K. F-35 decision to swap out of still offering conventional? I realize it’s kind of real time but sounds like you’ve been briefed a little bit. Maybe one of the puts and takes of the way we should think about this on the program for the long-term. And then if you could also just tie it in with your views of the international, in general, for the entire corporation. I mean, you’ve seen real cuts in the U.K. by 8% in Germany, and I think expectations are there’s further pressure here in the U.S. How should we think about the international market place, thanks?

Yeah, I’ll take it in sections, Peter. Actually, I think we probably know about as much of the U.K. decision on F-35 as you do. I mean, you have to sort of filter out the things that are being described and discussed as the process is unfolding from the actual results of the process. It’s a very comprehensive review that’s been undertaking in the United Kingdom, it’s very broad. It’s very deep. It’s very forward looking. I don’t even think the exact numbers of airplanes to be procured, have been determined as I’m sure - which is typical of all national security planners that we deal with in our international and domestic community. We try to work through concepts of operations likely future scenarios, how much equipment will need to be capable, on what date to accomplish what task. So I believe we’re watching the results flow out of the U.K. sort of in process. Where some determinations have been made, I think the judgment to move away from Stovall to the carrier variant. And I’m going to make some guesses here Peter, but that that decision might be made to enhance interoperability, to enable potentially U.S. aircraft to land on U.K. aircraft carriers, where French aircraft, or vice versa. So I think that the experience we’ve had has been judgments are made on capability, total expense, lifecycle cost, interoperability, flexibility. And that’s what we’re seeing in the U.K. And we’ll have to see what ultimate judgments are made about airplanes. But just stick with the F-35 for awhile. We’ve long expected that there would be substantial movement over time. In the total estimated volumes of airplanes to be procured, whether they’re U.S. airplanes for the Air Force, the Navy, or the Marine Corps or whether they’re for are international…

Our next question comes from Cal Von Rumohr, from Cowen and Company. Cai Von Rumohr – Cowen and Company: Yes, thank you very much. So your pension guidance for 2011 of a billion, is 550 million higher than what you gave us at midyear, despite the fact that you’re putting 800 million more into the pension from despite the fact that you’re now in positive territory in terms of returns. And based on kind of what you told us, the discount rate was about 100 million per 25 bids, you know, that’s probably some 350 million negative. So by my numbers, you’re 200 million off. How much of that is CAS/harmonization and if you could walk us through the other items. And then give us some rough color as to what should we expect in 2012, because you gave us some color on that the last time. Thanks.

You’re numbers are all very directionally accurate. Think of the discount rate change, and by the way, I’m not here to suggest that the discount rate is 5% today. We tried to give you some sensitivity in the press release. We picked that number thinking if things continue down the path from the interest rate perspective, that’s where it could be. I don’t think we’re there today, by the way. But sticking to that number, if you assume the 5%, that’s about 400 million of the 550 or so that you’re talking about. And then the CAS/harmonization, from what we considered last year to now, moving that out from 2011 to 2012 that accounts for the full difference. Think of that as being about 150 million bucks next year. In 2012, I’ll be honest with you, I hate to even speculate on 2012, given that we – I don’t know where we’re going to end up in 2010. I’d just as soon wait until we see what that looks like, and perhaps I’ll give you some more color on that in the January call.

Our next question comes from Troy Lahr, from Stifel Nicolaus. Troy Lahr – Stifel Nicolaus & Co, Inc.: Yeah, thanks. Bob, I’m wondering if you can maybe talk about how you’re managing the loss of knowledge at the executive level. I guess, it sounded like maybe 3 times more people took the offer. Are the 600 people leaving, kind of a different phases, and maybe can you talk about how that’s spilt between your four segments?

Yeah, I’m happy to. A editorial note, at least from my point of view, I’ve heard some discussion about what was expected versus what was happened. What happened was what I expected, so. And I won’t comment more about that, I just find it interesting. So more than 70% of those who have accepted the voluntary executive separation program are retirement eligible, which means they could walk out the door today. And I’ll be very candid in my selection of language with you. It isn’t as though the actions that we’ve taken or that I’ve authorized here are taking us off a cliff. These folks were going to leave in the next couple of years anyway. And the question in our mind was, how do you want to orchestrate the environment in which seasoned senior folks are going to leave. And we elected to take ourselves to a position, rather than allow circumstances to envelope us and take us in a place that we have not planned for – or couldn’t adequately predict what the outcome would be. So years ago, we began planning through a series of executive rotations. Perhaps you’re familiar with the phrase full spectrum leadership, the investment in a center for leadership excellence here to begin to populate a set of experience to rotation of assignments, and broadening experiences in this company. A cadre of talent, it was not retirement eligible today, recognizing we’ve got a demographic ship not just in our company and our industry, but throughout our government where the baby boomers are going to go to retirement. And they’re going to go no matter what you and I do. So the best program was part of a much broader articulated strategy of how to transition through generational change in our company without losing…

Jevon, I think we have time for one more call if we could please.

Okay, our final question comes from George Shapiro, with Access 342. George Shapiro – Access 342: Yeah, Bob. I had one other question just in general here. That with the – you sold EIG for 12 times EBIT, your own stock selling for 5 times. We’ve seen other transactions in the 10 to 12 times. I mean, why wouldn’t this get you to want to take a sharp look at some of the other businesses that you have, and potentially take a look at them for sale if the valuations between the public and private markets don’t close?

Well, there’s several observations I’d offer you there, George. But first, and I hope we conveyed this with clarity when we talked to you about EIG and PAD we do, routinely look at every aspect of this business, strategically, operationally, and financially relative to a short-term, intermediate term, and long-term fit with regards to delivering value to customers and value to shareholders while we create a vibrant environment here for our employees. If we trigger a threshold and any one of those domains, as was the case with EIG on the organizational conflict of interest or PAD where gross opportunities were progressively misaligned with our core strategy, we won’t hesitate. I will also tell you, we’re not pleased with trading multiple of our stock, and damn well believe we can do better. So in the short horizon I don’t think we’re going to be looking at wholesales divestiture here before we look at operating the businesses better, navigating through some near-term turbulence, recognizing the quality and strength of our portfolio and our ability to execute going forward, because we have the leadership and the professional capability to do a better job. And that’s got our focus. It won’t cause us to fail to look at the quality of our portfolio on a recurring basis, but I don’t think you should expect from us, wholesale divestitures because at a moment in time, there’s a little more pressure here than any of us would like. Our job is to go execute better and relieve some of that pressure.

George, I thank you for the question. Let me thank you Jevon for your help on the call today, and thank everybody who joined us. We’re going to focus, as I said on execution, and on streamlining, and on becoming more efficient as we learn more about our budget priorities and program priorities here on the domestic business front, and in the international community. And we’ll be able to share more complete set of observations with you in January when we’re next on the line together. So thanks again for being with us today.

Ladies and gentlemen, thank you for your participation in today’s conference. This concludes the program, you may all disconnect, have a great day.