Lockheed Martin is spinning off its Information Systems & Global Solutions division to create a new company with Leidos, under an arrangement called a Reverse Morris Trust, Lockheed announced Tuesday. This mechanism allows substantial tax avoidance by creating a subsidiary, which merges with an outside company (in this case, Leidos), then Lockheed receives a majority (50.9 percent) of shares in the resulting entity. The move will allow Lockheed to “focus on our core business” while creating “a more diversified competitor” in the i?nformation technology and technical services sector, company officials said in a conference call with reporters. The move will “unlock” several billions of dollars, which Lockheed said it will apply in part to completing a share buyback program. The company is shooting to go below 300 million outstanding shares, and is “well on its way” to accomplishing that.
The Air Force overall reduced its size by 120 aircraft in fiscal year 2021, but kept about the same number of fighter, bomber and attack aircraft, according to data supplied by the service. The F-35 fleet saw the biggest increase while the B-1B bomber fleet saw the largest decline.