Lockheed Martin 2008 Annual Report Download - page 17

Through our Pacific Architects and Engineers (PAE) subsidiary, Global Services provides management support
infrastructure and staffing for overseas bases. This includes base camp construction, logistics, democratization services, and
management of embassies, air terminals, base camps, and other facilities. These operations are increasingly global in nature
as we are deployed with our customers and our services in support of their mission. Customers include the U.S. Department
of State and international agencies such as the North Atlantic Treaty Organization (NATO) and the United Nations. Global
Services also includes our wholly-owned subsidiary Savi Technology, which provides radio frequency identification
solutions for both our government and commercial customers.
In April 2008, IS&GS completed the acquisition of the Eagle Group International LLC, based in Atlanta, Georgia. This
acquisition extends our logistics and business process services offerings with the U.S. Army and also provides us with
military health system expertise.
In June 2008, the DoD Defense Logistics Agency awarded us the Integrated Data Environment / Global Transformation
Network Convergence contract to provide common integrated data services to enable development of applications for a
cohesive solution for the management of supply chain, distribution and logistics information. In October 2008, NASA
awarded us the facilities development and operations contract to provide support at the Johnson Space Center and other
locations where astronaut and human spaceflight mission training is conducted.
Competition
The range of products and services at IS&GS results in competition with other large aerospace, defense and information
technology companies, as well as with numerous smaller competitors. The principal factors of competition include technical and
management capability, the ability to develop and implement complex, integrated system architectures, affordability and past
performance. Program requirements frequently result in the formation of teams such that companies teamed on one program are
competitors for another, especially in our Mission Systems line of business. On some outsourcing procurements, which are more
prevalent in our Information Systems line of business, we may also compete with a government-led bidding entity.
Aeronautics
Aeronautics is engaged in the research, design, development, manufacture, integration, sustainment, support, and
upgrade of advanced military aircraft, including combat and air mobility aircraft, unmanned air vehicles, and related
technologies. Our customers include the military services and various government agencies of the United States and allied
countries around the world.
In 2008, net sales at Aeronautics of $11.5 billion represented 27% of our total net sales. Aeronautics has three principal
lines of business, and the percentage that each contributed to its 2008 net sales is:
Combat Aircraft
Air Mobility
Advanced Research and Development and Other
13%
74%
13%
In 2008, U.S. Government customers accounted for approximately 81% of the segment’s net sales.
Combat Aircraft
Our Combat Aircraft business designs, develops, produces and provides systems support for fighter aircraft. Our major
fighter aircraft programs include:
• The F-35 Lightning II Joint Strike Fighter – stealth international multi-role coalition fighter;
• The F-22 Raptor – air dominance and multi-mission stealth fighter; and
• The F-16 Fighting Falcon – low-cost, combat-proven, international multi-role fighter.
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