Law360, New York (December 18, 2014, 11:05 AM EST) -- It is a time of dramatic and unsettling change for many companies in the U.S. aerospace and defense industry. This period of great change has been characterized by a declining U.S. defense budget with continuing uncertainty over the impact of sequestration. A recent report on U.S. military spending issued by the Council on Foreign Relations noted that in calendar year 2013, U.S. military spending declined from $671 billion to $619 billion (in constant 2011 dollars), the largest decline since 1991. The report predicted a likely further decline in 2014 because of reduced U.S. operations in the Middle East and sequestration.[1] Additional decline in U.S. defense spending to $540 billion by 2020, down from $720 billion in 2011, also has been predicted.[2] The article noted the effect that budget uncertainty was having on defense contractors:...