Oral Argument Schedule for Lockheed Martin

February 27, 2020

On December 13, 2019, the Supreme Court of Texas set oral argument in Lockheed Martin Corp. v. Hegar (18-0566) for Thursday, January 30, 2020 at 9AM. The Court will review whether Lockheed Martin, represented by Baker Botts with Ryan Law Firm’s Doug Sigel as co-counsel, and its sales of fighter jet to foreign governments under the Foreign Military Sales program were Texas sales for Texas franchise tax purposes.

The court of appeals concluded that because Lockheed Martin directly contracted with the U.S. government, the fighter jets were sold to the U.S. government. And because the jets were delivered to the U.S. government in Texas, the sale was a Texas sale under either the place-of-delivery test or the ultimate-destination test.

In its Petition for Review, Lockheed Martin argues that the foreign governments, not the U.S. government, purchased the jets, and the sales should be sourced under the ultimate-destination test to the foreign governments.

For more information, contact:

Doug Sigel
Practice Group Leader, Sales & Use and Income Tax