Lockheed Martin 2004 Annual Report Download - page 70

Download and view the complete annual report

Please find page 70 of the 2004 Lockheed Martin annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 78

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78

Lockheed Martin Corporation
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
December 31, 2004
68
Net Sales by Customer Category
(In millions) 2004 2003 2002
U.S. GOVERNMENT
Aeronautics $ 7,876 $ 6,613 $ 4,483
Electronic Systems 7,909 7,363 6,910
Space Systems 5,180 4,928 4,303
Integrated Systems & Solutions 3,742 3,252 2,804
Information & Technology Services 3,589 2,799 2,735
$28,296 $24,955 $21,235
FOREIGN GOVERNMENTS (a)(b)
Aeronautics $ 3,896 $ 3,580 $ 1,971
Electronic Systems 1,731 1,526 1,657
Space Systems 4——
Integrated Systems & Solutions 29 16 51
Information & Technology Services 94 79 76
$ 5,754 $ 5,201 $ 3,755
COMMERCIAL (b)
Aeronautics $9$9$17
Electronic Systems 84 102 118
Space Systems 1,173 1,093 984
Integrated Systems & Solutions 79 152 160
Information & Technology Services 118 296 293
Total business segments 1,463 1,652 1,572
Other 13 16 16
$ 1,476 $ 1,668 $ 1,588
$35,526 $31,824 $26,578
(a) Sales made to foreign governments through the U.S. Government are
included in the foreign governments category above.
(b) International sales, including export sales reflected in the foreign govern-
ments and commercial categories above, were approximately $6 billion,
$5.6 billion and $4.3 billion in 2004, 2003 and 2002, respectively.
NOTE 16 — SUMMARY OF QUARTERLY
INFORMATION (UNAUDITED)
2004 Quarters
(In millions, except
per share data) First Second Third Fourth(a)
Net sales $8,347 $8,776 $8,438 $9,965
Operating profit 536 544 561 448
Net earnings 291 296 307 372
Earnings per share 0.65 0.66 0.69 0.83
2003 Quarters
(In millions, except
per share data) First(b) Second(c) Third(d) Fourth(e)
Net sales $7,059 $7,709 $8,078 $8,978
Operating profit 505 470 428 616
Net earnings 250 242 217 344
Earnings per share 0.55 0.54 0.48 0.77
(a) Net earnings for the fourth quarter of 2004 included the following items:
a charge related to Pit 9 litigation which decreased net earnings by $117
million ($0.26 per share); a charge related to the early repayment of debt
which decreased net earnings by $100 million ($0.22 per share); the clo-
sure of an IRS examination which increased net earnings by $144 million
($0.32 per share); a gain on the sale of interest in New Skies Satellites,
N.V. which increased net earnings by $59 million ($0.13 per share); and a
gain on the sale of COMSAT General business which increased net earn-
ings by $4 million ($0.01 per share).
(b) Net earnings for the first quarter of 2003 included the following items:
a charge related to the early repayment of debt which decreased net earn-
ings by $13 million ($0.03 per share); and partial reversal of a charge
recorded in 2002 related to Space Imaging which increased net earnings
by $13 million ($0.03 per share).
(c) Net earnings for the second quarter of 2003 included a charge related to
the Corporation’s decision to exit the commercial mail sorting business
which reduced net earnings by $27 million ($0.06 per share).
(d) Net earnings for the third quarter of 2003 included a charge related to the
early repayment of debt which decreased net earnings by $83 million
($0.18 per share).
(e) Net earnings for the fourth quarter of 2003 included a gain from the sale
of the Corporation’s commercial IT business which increased net earnings
by $8 million ($0.02 per share).