Lockheed Martin 1996 Annual Report Download - page 83

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Lockheed Martin Corporation
obligations of Loral as guarantor under the Revolving Credit
Agreement of Globalstar, L.P, an affiliate of Loral SpaceCom,
up to a maximum principal amount of $250 million, subject to the
assumption by certain of the Globalstar partners of a portion of the
Corporation's obligations as guarantor. At December 31, 1996, the
Corporation had contingent liabilities on outstanding letters of
credit, guarantees, and other arrangements aggregating approxi-
mately $1.5 billion.
Note 15 — Information on Industry Segments
and Major Customers
The Corporation operates in four principal business segments:
Space & Strategic Missiles, Electronics, Information & Services,
and Aeronautics. All other activities of the Corporation fall within
the Energy, Materials and Other segment.
Space & Strategic Missiles — Engaged in the design,
development, engineering and production of civil, commercial and
military space systems, including spacecraft, space launch vehi-
cles, manned space systems and their supporting ground systems
and services; telecommunications systems and services; strategic
fleet ballistic missiles; and defensive missiles.
Electronics — Engaged in the design, development, engineer-
ing and production of high performance electronic systems for
undersea, shipboard, land-based, airborne and space-based appli-
cations. Major defense product lines include surface ship and sub-
marine combat systems; anti-armor missiles; indirect fire support
weapons systems; air defense systems; aircraft system integration;
and electronic warfare. Major commercial product lines include
satellite electronics; mail handling automation systems; and trans-
portation systems.
Information & Services — Engaged in the development,
integration and operation of large, complex information systems;
engineering, technical, and management services for federal cus-
tomers; transaction processing systems and services for state and
local government agencies; commercial information technology
outsourcing; manufacture and distribution of computer peripherals,
graphics engines and intranet software; and the provision of internal
information technology support to the Corporation.
Aeronautics — Engaged in the design, development, engineer-
ing and production of fighter, bomber, special mission, airlift,
antisubmarine warfare, reconnaissance, surveillance and high per-
formance aircraft; systems for military operations; aircraft controls
and subsystems; thrust reversers; and aircraft modification and main-
tenance and logistics support for military and civilian customers.
Energy, Materials and Other — The Corporation manages
certain facilities for the DOE. The contractual arrangements pro-
vide for the Corporation to be reimbursed for the cost of operations
and receive a fee for performing management services. The
Corporation reflects only the management fee in its sales and earn-
ings for these government-owned facilities. In addition, while the
employees at such facilities are employees of the Corporation,
applicable employee benefit plans are separate from the
Corporation's plans. The Corporation also provides environmental
remediation services to commercial and U.S. Government cus-
tomers, and has investments in other businesses. Through October,
1996, the Corporation provided construction aggregates and spe-
cialty chemical products to commercial and civil customers
through its Materials subsidiary (see Note 10).
Selected Financial Data By Business Segment
Operating profit
Space & Strategic Missiles
Electronics
Information & Services
Aeronautics
Energy, Materials and Other
$ 973
673
241
441
405
$2,733
$ 463
224
267
394
29
$1,377
$ 495
451
214
511
308
$1,979
Depreciation and
amortization
Space & Strategic Missiles
Electronics
Information & Services
Aeronautics
Energy, Materials and Other
$188
239
121
126
58
$732
$206
122
69
142
66
$605
$218
136
79
126
79
$638
Space & Strategic Missiles
Electronics
Information & Services
Aeronautics
Energy, Materials and Other
$ 7,904
6,705
5,863
5,596
807
$26,875
$ 7,813
3,357
4,173
6,617
893
$22,853
$ 7,000
4,059
3,986
7,091
770
$22,906
Space & Strategic Missiles
Electronics
Information & Services
Aeronautics
Energy, Materials and Other
$ 52
209
124
79
1
$465
$ 56
85
57
89
9
$296
$ 61
69
45
89
15
$279
Net sales
(In millions) 1996 1995 1994
Amortization of
intangible assets