Lockheed Martin 2001 Annual Report Download - page 28

Lockheed Martin Annual Report >>> 35
Lockheed Martin Corporation
(Continued)
Backlog
Total negotiated backlog of $71.3 billion at December 31,
2001 included both firm orders for the Corporation’s products
for which funding has been appropriated by the customer
(Congress, in the case of U.S. Government agencies) and
firm orders for which funding has not been appropriated.
The following table shows total backlog by segment at
the end of each of the last three years:
(In millions) 2001 2000 1999
Backlog
Systems Integration $17,027 $16,706 $13,971
Space Systems 12,977 15,505 16,508
Aeronautics 36,149 17,570 9,003
Technology Services 5,116 5,295 5,325
$71,269 $55,076 $44,807
Systems Integration backlog increased by two percent
in 2001 compared to 2000, and by 20 percent in 2000
compared to 1999. The majority of the 2001 increase
was attributable to new orders for C4I programs. Increased
backlog associated with the Naval Electronic and Surveil-
lance Systems product line and various Systems Integration-
Owego activities were more than offset by a decline in
orders and increased sales on missiles and air defense sys-
tems. The majority of the 2000 increase was attributable to
new orders for missile and air defense systems, primarily
orders received on the THAAD program as a result of that
program’s movement into the EMD phase. Increased orders
for naval electronic and surveillance systems and various
Systems Integration-Owego activities were partially offset by
the absence of backlog associated with the segment’s AES
and Control Systems businesses, which were divested during
2000. The remainder of the 2000 variance from 1999
was primarily due to sales on existing orders and
decreases in new orders on C4I programs.
Space Systems backlog decreased by 16 percent in
2001 compared to 2000 and by six percent in 2000 com-
pared to 1999. The decrease in 2001 was primarily attribut-
able to declines in backlog on commercial space programs
due to decreases in new orders and sales on existing orders.
The decrease in commercial space backlog also includes
the effect of terminating the Astrolink satellite program and
launch vehicle contracts. Additional decreases in orders for
fleet ballistic missiles and government launch vehicles were
partially offset by increases in orders for government satellite
programs and ground systems. The decrease in 2000 was
primarily attributable to declines in backlog on government
launch vehicles and commercial satellites due to decreases
in new orders and sales on existing orders, respectively.
Additional decreases in orders of government satellite pro-
grams were partially offset by an increase in orders for
commercial launch vehicles.
Aeronautics backlog increased by 106 percent in 2001
compared to 2000 and by 95 percent in 2000 compared
to 1999. The 2001 increase is primarily due to the approx-
imate $19 billion order for the Joint Strike Fighter, or F-35,
aircraft program related to the System Demonstration and
Development (SDD) phase of the program. The SDD phase
has a performance period of 10.5 years and provides
for the production of 22 test aircraft. The Low Rate Initial
Production phase of the program is expected to begin in
the 2005 to 2006 time frame, with high rate production
planned to begin in the 2012 time frame. The remaining
fluctuation in backlog in 2001 compared to 2000 is due to
decreased orders on C-130 programs offset by increased
backlog associated with the F-16 and F-22 programs. The
2000 increase is primarily due to approximately $10.6 bil-
lion in orders related to the F-16 program, including new
F-16 contracts with the U.S. Government, the United Arab
Emirates (UAE), Israel, Greece, Singapore and Korea, col-
lectively. This increase was partially offset by a reduction
in backlog for the F-22 program as a result of increased
sales on existing orders.
Technology Services backlog decreased by three per-
cent in 2001 compared to 2000 and by one percent in
2000 compared to 1999. The decrease in 2001 was
mainly attributable to sales on existing orders in the seg-
ment’s aircraft and logistics line of business, primarily the
Kelly Aviation Center contract, and sales on existing orders
Negotiated Backlog
$0
$30,000
$45,000
$60,000
(In millions)
$15,000
’01 ’00 ’99
$75,000