Lockheed says costs tied to its F-35 Lots 18-19 aircraft contract began to exceed the advanced acquisition contract value in 3Q as funding lagged. The defense company remains in negotiations with the U.S. government over the deal, but says it was unable to recognize revenue and profit on about $400 million of costs incurred on the program during the quarter, plus about $300 million due to snags on the supply chain. Lockheed says it was prevented from invoicing and receiving about $450 million through the quarter and also had about $2 billion in potential termination liability exposure related to its Lots 18-19 deal. The company expects some of these issues to let up in the fourth quarter, but until a final agreement is reached, its results will continue to be negatively impacted, Lockheed says. Shares fall 5.2% to $582.60.