WEBVTT - Lockheed Martin's Tim Cahill Talks Defense Capabilities 0:00:02.520 --> 0:00:04.210 Bloomberg Audio Studios. 0:00:04.690 --> 0:00:05.370 Podcasts. 0:00:05.690 --> 0:00:06.210 Radio. 0:00:06.650 --> 0:00:09.030 News. We're going to switch gears a little bit. 0:00:09.090 --> 0:00:12.059 Yeah, from a one sector media to another, and that 0:00:12.100 --> 0:00:15.180 would be defense. Lockheed Martin unveiling a new missile interceptor 0:00:15.220 --> 0:00:19.490 designed to outperform its most capable Patriot variant. This, Carol, 0:00:19.610 --> 0:00:22.510 as the U.S. Army seeks to expand... its air defense 0:00:22.550 --> 0:00:26.770 capabilities against increasingly sophisticated threats like hypersonic missiles. 0:00:26.829 --> 0:00:29.850 We have a million questions. We're going to head to Washington, D.C. 0:00:29.890 --> 0:00:32.360 for some answers and to Tim Cahill. He is president 0:00:32.440 --> 0:00:35.839 of Missiles and Fire Control at the $ 118 billion market 0:00:35.860 --> 0:00:39.360 cap defense and aerospace company. You know it well, Lockheed Martin. 0:00:39.760 --> 0:00:43.220 He joins Tim and me on this Monday. Tim, so 0:00:43.260 --> 0:00:45.240 great to have you here with us. Tell us about 0:00:45.340 --> 0:00:49.449 PAC-3 EDGE, what's new, what's significant, what our audience needs 0:00:49.490 --> 0:00:50.729 to know and understand about this. 0:00:51.770 --> 0:00:55.070 Yeah, absolutely. And thank you for having me today. It's 0:00:55.110 --> 0:00:58.590 a pleasure. I'm here on the floor of a USA conference. 0:00:58.610 --> 0:01:01.090 There's a lot of excitement here today. And yes, we 0:01:01.130 --> 0:01:04.530 are introducing our next variant of our PAC-3 missiles. So 0:01:05.050 --> 0:01:07.250 you all know about the PAC-3 MSE. I think by 0:01:07.310 --> 0:01:09.340 now we've heard about it in Ukraine. You've heard it 0:01:09.380 --> 0:01:12.640 about in the Middle East, the most capable. air and 0:01:12.680 --> 0:01:16.319 missile defense interceptor in the world. We're now introducing the 0:01:16.380 --> 0:01:20.080 brand new generation of that, the PAC-3 Edge. And PAC-3 0:01:20.140 --> 0:01:23.170 Edge is designed to go higher, faster, and further than 0:01:23.230 --> 0:01:26.169 PAC-3 MSE. And what it's really designed to do is 0:01:26.230 --> 0:01:29.430 to take on those threats that our military and the 0:01:29.470 --> 0:01:32.250 military of our allies are going to face here in 0:01:32.290 --> 0:01:35.540 the next 3, 5, 10 years. So it is us 0:01:35.620 --> 0:01:38.540 getting out ahead of what the threat is going to do, 0:01:38.800 --> 0:01:40.840 despite the fact that, of course, the MSC is doing 0:01:40.860 --> 0:01:43.620 an incredible job with today's current threats. 0:01:43.800 --> 0:01:46.120 Well, Tim, the current threats today, and especially what we're 0:01:46.140 --> 0:01:51.550 learning with regard to the war in Iran and Russia's 0:01:51.610 --> 0:01:55.330 invasion of Ukraine, has to do with more rudimentary design, 0:01:55.450 --> 0:01:58.250 drones that maybe cost tens of thousands of dollars that 0:01:58.330 --> 0:02:02.560 sometimes interceptors are used to intercept. Can you sort of 0:02:02.610 --> 0:02:08.139 explain what is being used currently to intercept? defend against 0:02:08.240 --> 0:02:11.860 those types of threats versus what this is meant to 0:02:11.880 --> 0:02:12.419 defend from? 0:02:14.380 --> 0:02:17.630 Yeah, happy to. And you're right. That isn't what PAC-3 0:02:17.710 --> 0:02:19.670 Edge is all about. Of course, it can hit anything 0:02:19.690 --> 0:02:21.610 that flies, but that's not where we really want to 0:02:21.710 --> 0:02:24.450 use it. So what's being used today is a variety 0:02:24.490 --> 0:02:27.140 of systems. And of course, whether it be our troops 0:02:27.180 --> 0:02:29.160 in the Middle East or whether it be the Ukrainians 0:02:29.940 --> 0:02:32.670 in Europe, are using some very creative methods. And it's 0:02:32.750 --> 0:02:36.330 everything from shooting them down from the ground with rifles, 0:02:36.669 --> 0:02:39.910 to shooting them down with F-16s, to shooting them down 0:02:39.960 --> 0:02:42.760 with small missiles. And if you have to, if you 0:02:42.780 --> 0:02:45.400 have a drone coming after a very high value target, 0:02:45.440 --> 0:02:48.100 you might choose to use a higher end missile, but 0:02:48.240 --> 0:02:51.690 only because you absolutely have to. But fundamentally, what we 0:02:51.730 --> 0:02:54.240 are doing is trying to give the department and our 0:02:54.340 --> 0:02:57.310 allies a much broader range of options. And so that's 0:02:57.370 --> 0:03:00.570 why here a couple of months ago, we introduced, for example, Morpheus, 0:03:01.210 --> 0:03:04.250 a very low cost drone that flies out and essentially 0:03:04.610 --> 0:03:10.520 zaps the incoming UASs by frying their electronics. And then 0:03:10.540 --> 0:03:12.440 you come back, you charge it up, send it out 0:03:12.460 --> 0:03:15.679 and do it again, as well as smaller missiles that 0:03:15.720 --> 0:03:18.990 we put in what we call a grizzly containerized launcher, 0:03:19.380 --> 0:03:23.160 But they're much cheaper missiles, much smaller, much easier to reload, 0:03:23.200 --> 0:03:25.320 if you will. That's the kind of things that you 0:03:25.340 --> 0:03:28.960 want to put on these less expensive threats. And so effectively, 0:03:29.020 --> 0:03:32.830 it's about taking the missile or system or drone or 0:03:32.889 --> 0:03:35.530 gun or whatever it is and putting it on the 0:03:35.570 --> 0:03:39.930 appropriate or putting the appropriate effector on the appropriate threat. 0:03:40.900 --> 0:03:43.400 What kind of production numbers are you expecting, not only 0:03:43.460 --> 0:03:46.620 with Pac-3 Edge, but also with your PAC-3 ACE. I 0:03:46.640 --> 0:03:49.990 think you've made some announcements recently. So give us an idea. 0:03:50.010 --> 0:03:53.190 Are there some updates? And kind of plays into what 0:03:53.210 --> 0:03:55.490 kind of demand flow are we seeing in an environment 0:03:55.530 --> 0:03:59.230 that is increasingly a lot of places around the world 0:03:59.430 --> 0:03:59.750 at war? 0:03:59.770 --> 0:04:04.440 Yeah, that's a great question. And so, you know, as 0:04:04.480 --> 0:04:06.880 we've talked about and the department's talked about, we're for 0:04:06.920 --> 0:04:10.900 PAC-3 MSEs. So let's start there. We're rapidly going toward 0:04:10.940 --> 0:04:12.960 the thousands. So we're going to go to triple or 0:04:13.020 --> 0:04:16.530 quadruple the current rates. And that is going extremely well, 0:04:16.550 --> 0:04:19.260 by the way. The department has been an incredible partner 0:04:19.300 --> 0:04:21.919 with us to figure out everything that could be slowing 0:04:21.980 --> 0:04:25.060 us down and helping us go faster. So then you 0:04:25.100 --> 0:04:29.210 take PAC-3 ACE, which you mentioned, a perfect example of 0:04:29.529 --> 0:04:31.390 kind of the lower cost, but not all the way 0:04:31.430 --> 0:04:34.550 down into drone territory yet. But that one will be 0:04:34.589 --> 0:04:39.690 about two-thirds capability and about, say, one-half the cost. So 0:04:39.970 --> 0:04:42.589 the intent would be that we will produce those first 0:04:42.750 --> 0:04:45.910 in Europe, likely perhaps the Middle East. And then those 0:04:45.950 --> 0:04:47.940 are going to be, we expect to be in the 0:04:48.040 --> 0:04:51.520 thousands as well as we ramp up production. Now, then 0:04:51.560 --> 0:04:54.040 that brings us to PAC-3 Edge. What we would expect 0:04:54.120 --> 0:04:56.880 is that PAC-3 Edge would start slowly, but of course 0:04:56.900 --> 0:04:58.580 we'll work with the army to see what the right 0:04:58.620 --> 0:05:02.060 numbers are, but eventually we'll be capable of producing hundreds 0:05:02.100 --> 0:05:05.260 or thousands of PAC-3 Edges as the market demands it. 0:05:05.440 --> 0:05:07.810 So I would expect us to be producing all of 0:05:07.870 --> 0:05:12.799 these systems in very large quantities, perhaps at different phases, 0:05:12.839 --> 0:05:15.080 depending on what's needed and what the mission dictates. 0:05:15.160 --> 0:05:17.119 So not 1,000 or 2,000 a year, but you're talking 0:05:17.440 --> 0:05:19.140 tens or hundreds of thousands a year. 0:05:19.180 --> 0:05:25.000 Is that correct? So it'll be from MSE will be 0:05:25.040 --> 0:05:27.460 in the thousands, in the low thousands. We would expect 0:05:27.600 --> 0:05:31.560 ACE to be in the thousands. EDGE could be produced 0:05:31.580 --> 0:05:36.130 in the thousands as well, if that's what the orders say. demand, 0:05:36.180 --> 0:05:36.940 if you will. Okay. 0:05:37.210 --> 0:05:39.920 Well, given the large number of suppliers needed to make 0:05:39.960 --> 0:05:43.159 a single pack three, what are the biggest choke points 0:05:43.640 --> 0:05:47.779 in production that perhaps keeps you from reaching that DOD 0:05:47.820 --> 0:05:48.780 goal even sooner? 0:05:51.560 --> 0:05:55.000 Yeah. So you might imagine that, of course, as you know, 0:05:55.040 --> 0:05:57.040 it takes every part to build a missile, so anything 0:05:57.060 --> 0:05:59.560 can hold us up. But to answer your question fairly, 0:05:59.940 --> 0:06:03.760 usually the more complex the part, the more that you 0:06:03.839 --> 0:06:06.580 are at risk of something holding it up. So solid 0:06:06.620 --> 0:06:10.150 rocket motors, important complex part, that tends to be something 0:06:10.170 --> 0:06:12.110 that we watch real careful and it's easy to get 0:06:12.150 --> 0:06:17.849 behind on. Anything in this circuitry area, advanced circuitry, for example, seekers, 0:06:18.170 --> 0:06:20.690 which are also highly complex. Those are the things that 0:06:20.730 --> 0:06:23.370 we tend to focus the most on because those are 0:06:23.390 --> 0:06:26.010 the ones that can hold us up quickly just because 0:06:26.050 --> 0:06:28.630 there's so many individual parts that have to go into them. 0:06:29.230 --> 0:06:31.730 But we're working those awful hard and working every single 0:06:31.770 --> 0:06:35.810 supplier dual sourcing at least every potential supplier to make 0:06:35.870 --> 0:06:37.730 sure that one can pick up the slack if another 0:06:37.810 --> 0:06:40.070 one doesn't. And I will tell you that our suppliers 0:06:40.110 --> 0:06:43.010 have really stepped up. They are investing as well to 0:06:43.029 --> 0:06:45.349 the tune of hundreds of millions to billions of dollars, 0:06:45.390 --> 0:06:48.390 depending on their scale. And so this is a team 0:06:48.470 --> 0:06:52.510 effort with the department. Everybody's in on driving this production 0:06:52.570 --> 0:06:53.090 up fast. 0:06:53.510 --> 0:06:55.420 I have to tell you, whenever we talk about things 0:06:55.750 --> 0:06:59.680 like this kind of segment, we get viewers and terminal 0:06:59.779 --> 0:07:02.020 users and folks who are like, How much does this 0:07:02.040 --> 0:07:04.580 thing cost? We're all taxpayers. We're paying for this stuff. 0:07:04.930 --> 0:07:08.190 How much does, I don't know, give us an idea 0:07:08.210 --> 0:07:12.990 of this latest update, the PAC-3 Edge? What does it cost? 0:07:14.110 --> 0:07:17.950 So I would expect PAC-3 Edge to be just a 0:07:17.990 --> 0:07:21.020 little more than an MSE, which is on the order 0:07:21.040 --> 0:07:26.640 of several million dollars is what's usually publicized. And so, 0:07:27.080 --> 0:07:29.120 you know, right now what we are doing throughout the 0:07:29.180 --> 0:07:32.920 entire pandemic portfolio, if you will, so all the munitions 0:07:32.940 --> 0:07:37.020 that we build, is we are rapidly applying high technology 0:07:37.080 --> 0:07:40.280 production to keep the costs contained and to keep them down. 0:07:40.620 --> 0:07:44.320 And so that's everything from AI and additive manufacturing through 0:07:44.540 --> 0:07:47.960 robotics and building robot cells, if you will, that individually 0:07:48.000 --> 0:07:51.060 build these things and bring these costs down. What's interesting 0:07:51.160 --> 0:07:53.820 is while you say, well, the costs are pretty high 0:07:53.840 --> 0:07:56.840 and we're keeping those costs pretty level, what's also happening 0:07:56.880 --> 0:07:59.840 is we are investing billions and billions of dollars at 0:07:59.860 --> 0:08:04.760 the same time into increasing the production and the capability. 0:08:05.180 --> 0:08:07.520 And so the U.S. government is not paying for all that, 0:08:07.560 --> 0:08:10.020 which is something that they used to do. And so 0:08:10.140 --> 0:08:13.060 all that is coming back to still a production level, 0:08:13.120 --> 0:08:16.810 high production level, and a cost that is staying fairly even. 0:08:17.750 --> 0:08:20.070 But scaling the missiles, should that bring down the cost 0:08:20.110 --> 0:08:20.610 in the future? 0:08:20.630 --> 0:08:25.970 You know, I think the production levels are going to 0:08:26.050 --> 0:08:29.510 bring down the cost in some senses. In other ones, 0:08:29.570 --> 0:08:33.330 what you'll do is trade that cost for investment in 0:08:33.390 --> 0:08:36.650 both future technology as well as high production of what 0:08:36.690 --> 0:08:39.390 you're building right now. So, and again, in the end, 0:08:39.410 --> 0:08:42.700 the US government will only end up buying the recurring 0:08:42.740 --> 0:08:45.459 cost of the missile, if you will. All those billions 0:08:45.500 --> 0:08:48.860 that go into production and technology We're footing the bill 0:08:48.910 --> 0:08:51.300 for all of that. So in aggregate, the taxpayer is 0:08:51.380 --> 0:08:54.900 actually doing much better under the new policies with the 0:08:54.940 --> 0:08:56.240 department than they were before. 0:08:56.679 --> 0:08:58.780 So apart from the U.S. government, who do you expect 0:08:59.440 --> 0:09:00.760 customers of this to be? 0:09:00.780 --> 0:09:05.960 Well, so the customers I think right now initially will 0:09:05.980 --> 0:09:10.380 be the U.S. government, of course, for this high-tech version. Eventually, 0:09:10.420 --> 0:09:13.400 we would expect that all of the Patriot users are 0:09:13.440 --> 0:09:16.070 going to want to have Edge. And then it'll be 0:09:16.130 --> 0:09:17.810 up to us to work with the U.S. government to 0:09:17.850 --> 0:09:20.130 decide on the timing and when that would be available. 0:09:20.450 --> 0:09:22.510 But we're anticipating that this is going to be part 0:09:22.850 --> 0:09:25.589 of the global defense network, just like the MSC is today. 0:09:26.530 --> 0:09:32.480 I'm curious about low-cost interceptors and the startups that get 0:09:32.520 --> 0:09:36.260 a lot of attention right now, the Andurils of the world, 0:09:36.600 --> 0:09:40.460 for example. They're among the companies leading the low-cost interceptor charge. 0:09:40.500 --> 0:09:43.660 Is there enough room for all to play here? Will 0:09:43.679 --> 0:09:45.380 the primes enter the market too? 0:09:46.780 --> 0:09:49.870 Well, it probably is for a while and we'll see 0:09:50.090 --> 0:09:53.630 since the numbers increase every single day, it seems. But 0:09:53.670 --> 0:09:55.670 there is a lot of demand out there in the world. 0:09:55.710 --> 0:09:58.930 This is absolutely true. I think if we can build 0:09:59.110 --> 0:10:04.280 a nice, mix of low cost and the higher capable systems, 0:10:04.640 --> 0:10:07.319 that's probably the right thing to go into a conflict with. 0:10:07.360 --> 0:10:11.770 And frankly, that's the way to deter your potential adversaries 0:10:11.809 --> 0:10:14.510 these days, to have that entire myth. So I think 0:10:14.530 --> 0:10:16.309 that for a while, there's going to be enough there. 0:10:16.330 --> 0:10:18.850 I think that the trade-off is going to be Remember, 0:10:18.910 --> 0:10:21.840 nothing comes for free. And so when you reduce the cost, 0:10:21.860 --> 0:10:26.660 you reduce capability. So finding the sweet spot where it's affordable, 0:10:27.990 --> 0:10:30.830 but it's also fully capable. It also can withstand the 0:10:30.870 --> 0:10:36.160 launch environment. It can withstand whatever the... adversary throws at you, 0:10:36.340 --> 0:10:38.560 that's important too. And so that's why we've come up 0:10:38.580 --> 0:10:40.880 with things like PAC three A's, which we think are 0:10:40.900 --> 0:10:42.840 a nice sweet spot that provide both. 0:10:43.040 --> 0:10:45.599 Well, how would you just, just for our viewers and 0:10:45.640 --> 0:10:48.770 listeners who, who might not follow this very closely, how 0:10:48.809 --> 0:10:52.010 would you distinguish low cost versus sort of higher cost 0:10:52.030 --> 0:10:54.370 where the primes play right now versus where the startups 0:10:54.410 --> 0:10:56.429 play right now? How would you distinguish that from a 0:10:56.470 --> 0:10:58.949 cost perspective and from a capabilities perspective? 0:11:00.970 --> 0:11:04.330 Yeah, that's great. The, um, And it is hard. So 0:11:04.370 --> 0:11:06.270 it's not just for those who don't follow it every day. 0:11:06.309 --> 0:11:08.010 This is a debate that we have all the time. 0:11:08.510 --> 0:11:10.510 I think it's the easiest way to do this is 0:11:10.570 --> 0:11:14.050 to match kind of two things. The value of the 0:11:14.090 --> 0:11:16.839 thing that somebody is throwing against you, because you prefer 0:11:16.880 --> 0:11:19.540 not to have a massive economic mismatch. So they throw 0:11:19.580 --> 0:11:22.720 something cheap, you throw something expensive. The other thing is 0:11:23.080 --> 0:11:26.540 what is that item protecting, right? So if you're protecting 0:11:26.840 --> 0:11:30.500 a lot of lives, a lot of very expensive hardware, um, 0:11:30.660 --> 0:11:33.900 command posts, things like that. You want to have something really, 0:11:33.960 --> 0:11:37.020 really good protecting that. So you want the capability and 0:11:37.040 --> 0:11:39.750 you're not so worried about paying a bit extra for that. Well, 0:11:39.770 --> 0:11:42.449 by the way, if you're the adversary trying to destroy that, 0:11:42.510 --> 0:11:45.250 you're throwing something pretty capable at it as well, because 0:11:45.290 --> 0:11:47.990 it's a lot of value to destroy that particular target. 0:11:48.590 --> 0:11:51.390 If on the other hand, you're talking about something that 0:11:51.450 --> 0:11:54.650 is a drone that's flying with a very small explosive, 0:11:54.690 --> 0:11:56.880 that's only going to do a little bit of damage. 0:11:57.780 --> 0:12:00.079 you don't want to go put expensive systems on that. 0:12:00.140 --> 0:12:02.960 You want to knock that down with something cheaper. What's important, 0:12:03.000 --> 0:12:05.600 I think, is that we innovate and make sure that 0:12:05.760 --> 0:12:08.160 both the U.S. and their allies have that entire mix 0:12:08.200 --> 0:12:11.860 of defensive systems that can counter that entire mix of 0:12:11.940 --> 0:12:14.179 offensive systems. And that is the one thing that changes, 0:12:14.500 --> 0:12:17.210 that has changed, I should say, that spectrum has broadened 0:12:17.250 --> 0:12:18.170 over the last few years. 0:12:18.510 --> 0:12:19.829 You know, one thing I want to ask you, Tim, 0:12:19.850 --> 0:12:22.090 we spend so much time here at Bloomberg talking about 0:12:22.890 --> 0:12:25.959 innovation disruption. We talk, obviously, as you would expect, and 0:12:25.980 --> 0:12:28.940 you even mentioned artificial intelligence, but this stuff is happening 0:12:29.080 --> 0:12:32.939 so fast. And we have seen warfare and how wars 0:12:33.000 --> 0:12:38.420 are fought change increasingly faster as well. What do you 0:12:38.470 --> 0:12:41.050 think an investing audience needs to understand about what's going 0:12:41.150 --> 0:12:42.270 on in defense right now? 0:12:42.290 --> 0:12:46.970 Yeah, I think, well, it's really clear that the power 0:12:46.990 --> 0:12:49.589 of artificial intelligence is incredible, and we are using it 0:12:50.059 --> 0:12:53.420 really throughout our industry, and we'll continue to do that. 0:12:53.520 --> 0:12:55.599 And for exactly the same reasons that you're talking about. 0:12:56.020 --> 0:12:59.429 The first of all, you can reduce the development and 0:12:59.470 --> 0:13:02.670 production cycles very, very fast by using that kind of technology. 0:13:02.730 --> 0:13:06.110 You can discover what issues you have far before you 0:13:06.130 --> 0:13:09.710 might've discovered them before, make corrections in your design, simulate 0:13:09.750 --> 0:13:12.630 things like you could never simulate before. All of that 0:13:12.700 --> 0:13:17.060 contributes to faster cycle, faster delivery of technology. And then 0:13:17.100 --> 0:13:19.989 when you get into things like the actual production, Things 0:13:20.030 --> 0:13:24.250 like AI additive manufacturing, it allows you to quickly produce things, 0:13:24.610 --> 0:13:27.470 quickly discover where your defects are, because that's the thing 0:13:27.490 --> 0:13:30.010 that gets you is a defect that follows you down 0:13:30.050 --> 0:13:31.770 the chain and you don't find it until later on. 0:13:31.809 --> 0:13:33.810 What you want to do is find it the instant 0:13:33.830 --> 0:13:36.510 that it's created. So things like AI could do that 0:13:36.570 --> 0:13:38.950 for you. They can look at a part and instantly 0:13:39.030 --> 0:13:42.150 tell you the tiniest, tiniest flaw that you have in 0:13:42.170 --> 0:13:44.540 that part and you go fix it right now. And 0:13:44.559 --> 0:13:47.520 then you combine that with robotic systems that can actually 0:13:47.580 --> 0:13:50.750 make the repair instantly Now you have magic. And so 0:13:51.130 --> 0:13:53.740 everywhere you see AI showing up in the commercial world 0:13:53.780 --> 0:13:56.819 in your daily lives, there's an application somewhere within the 0:13:56.860 --> 0:14:00.000 defense industry, and it's helping us go faster. And we 0:14:00.040 --> 0:14:03.559 are investing, all of us are investing tremendously in these capabilities. 0:14:03.620 --> 0:14:05.300 Hey, Tim, just in the last 30 seconds that we 0:14:05.350 --> 0:14:07.150 have with you, we started off by talking about the 0:14:07.250 --> 0:14:11.929 differences with the new PAC-3 Edge. What about the next iteration? 0:14:12.500 --> 0:14:15.480 of the PAC-3 very briefly, what will it focus on? 0:14:15.600 --> 0:14:16.600 I just got this done. 0:14:16.640 --> 0:14:19.120 I know, but you know, of course, we're always working 0:14:19.220 --> 0:14:22.220 on the next one. In fact, 10 years ago, when 0:14:22.260 --> 0:14:25.500 I had the job of building these particularly, we were 0:14:25.520 --> 0:14:27.910 starting to work on this. So everything is going to 0:14:28.090 --> 0:14:30.150 happen just in the same kind of path, I think. 0:14:30.230 --> 0:14:33.770 Things are going to get faster, further, higher, more responsive, 0:14:34.150 --> 0:14:37.930 more AI. The systems are going to recognize when they're 0:14:37.950 --> 0:14:40.710 trying to be tricked by an adversary. I think you're 0:14:40.730 --> 0:14:43.090 just going to see this happening faster and faster. The 0:14:43.130 --> 0:14:46.030 systems are going to be more adaptable. They'll probably look 0:14:46.070 --> 0:14:50.840 about the same, long and pointy, but the actual intelligence 0:14:50.900 --> 0:14:53.590 in them is incredible, and it's getting more so every day. 0:14:54.150 --> 0:14:56.270 All right, Tim Cahill, thank you so much. President of 0:14:56.650 --> 0:15:00.180 Missiles and Fire Control at Lockheed Martin joining us from Washington, D.C.