Lockheed Martin 2004 Annual Report Download - page 41

The management of Lockheed Martin is responsible for the consolidated financial statements and all related financial infor-
mation contained in this Annual Report. The consolidated financial statements, which include amounts based on estimates and
judgments, have been prepared in accordance with accounting principles generally accepted in the United States. Management
believes the consolidated financial statements fairly present in all material respects the financial condition, results of operations
and cash flows of the Corporation. The consolidated financial statements have been audited by Ernst & Young LLP, an independent
registered public accounting firm, as stated in their report included herein.
The management of Lockheed Martin is also responsible for establishing and maintaining an adequate system of internal con-
trol over financial reporting of the Corporation (as defined by the Securities Exchange Act of 1934). This system is designed to
provide reasonable assurance, based on an appropriate cost-benefit relationship, that assets are safeguarded and transactions are
properly executed and recorded. An environment that provides for an appropriate level of control consciousness is maintained
through a comprehensive program of independent management testing to identify and correct deficiencies, examinations by inter-
nal auditors and audits by the Defense Contract Audit Agency for compliance with federal government rules and regulations appli-
cable to contracts with the U.S. Government.
Management conducted an evaluation of the effectiveness of the Corporation’s system of internal control over financial
reporting based on the framework in Internal Control – Integrated Framework issued by the Committee of Sponsoring Organizations
of the Treadway Commission. Based on this evaluation, management concluded that the Corporation’s system of internal control over
financial reporting was effective as of December 31, 2004. Management’s assessment has been audited by Ernst & Young LLP, as
stated in their report included herein.
Essential to the Corporation’s internal control system is management’s dedication to the highest standards of integrity, ethics
and social responsibility. To support these standards, management has issued the Code of Ethics and Business Conduct (the Code).
The Code provides for a help line that employees can use to confidentially or anonymously communicate to the Corporation’s ethics
office complaints or concerns about accounting, internal control or auditing matters. These matters are forwarded directly to the
Audit and Ethics Committee of the Corporation’s Board of Directors.
The Audit and Ethics Committee, which is composed of six independent directors, has oversight responsibility for the
Corporation’s financial reporting process and the audits of the consolidated financial statements and internal control over financial
reporting. Both the independent auditors and the internal auditors have unrestricted access to meet with members of the Audit and
Ethics Committee, with or without management representatives present. The Audit and Ethics Committee recommended, and the
Board of Directors approved, that the audited consolidated financial statements be included in the Corporation’s Annual Report on
Form 10-K for filing with the Securities and Exchange Commission.
Robert J. Stevens Christopher E. Kubasik
President and Chief Executive Officer Executive Vice President and Chief Financial Officer
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Lockheed Martin Corporation
MANAGEMENT’S REPORT ON FINANCIAL STATEMENTS AND INTERNAL CONTROL
OVER FINANCIAL REPORTING