Lockheed Martin 2010 Annual Report Download - page 12

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4
PART I
ITEM 1. BUSINESS
General
Lockheed Martin Corporation is a global security company that is principally engaged in the research, design, development,
manufacture, integration, and sustainment of advanced technology systems and products. We also provide a broad range of
management, engineering, technical, scientific, logistic, and information services. We serve both domestic and international customers
with products and services that have defense, civil, and commercial applications, with our principal customers being agencies of the
U.S. Government. We were formed in 1995 by combining the businesses of Lockheed Corporation and Martin Marietta Corporation.
We are a Maryland corporation.
In 2010, 84% of our $45.8 billion in net sales were made to the U.S. Government, either as a prime contractor or as a
subcontractor. Our U.S. Government sales were made to both Department of Defense (DoD) and non-DoD agencies. Sales to foreign
governments (including foreign military sales funded, in whole or in part, by the U.S. Government) amounted to 15% of net sales in
2010. The remainder of our net sales was attributable to commercial and other customers.
Our principal executive offices are located at 6801 Rockledge Drive, Bethesda, Maryland 20817-1877. Our telephone number is
(301) 897-6000. Our website home page on the Internet is www.lockheedmartin.com. We make our website content available for
information purposes only. It should not be relied upon for investment purposes, nor is it incorporated by reference into this
Form 10-K.
Throughout this Form 10-K, we incorporate by reference information from parts of other documents filed with the Securities
and Exchange Commission (SEC). The SEC allows us to disclose important information by referring to it in this manner, and you
should review that information.
We make our annual report on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K, and proxy statement
for our annual shareholders’ meeting, as well as any amendments to those reports, available free of charge through our website as soon
as reasonably practical after we electronically file that material with, or furnish it to, the SEC. You can learn more about us by
reviewing our SEC filings. Our SEC filings can be accessed through the investor relations page of our website,
www.lockheedmartin.com/investor. The SEC also maintains a website at www.sec.gov that contains reports, proxy statements, and
other information regarding SEC registrants, including Lockheed Martin Corporation.
Portfolio Shaping Activities
Periodically, we evaluate the Corporation’s businesses and product and service offerings to determine if they are meeting
strategic objectives and are aligned in the most optimal management structure. In 2010, we made decisions to divest two businesses,
Pacific Architects and Engineers, Inc. (PAE) and most of our Enterprise Integration Group (EIG), and to realign other businesses into
different lines of business or segments to increase operational efficiency. On November 22, 2010, we completed the divestiture of
EIG. On February 22, 2011, we announced that we entered into a definitive agreement to sell PAE. We expect the transaction will
close in the second quarter of 2011, subject to satisfaction of closing conditions. PAE’s and EIG’s operating results have been
removed from our Information Systems & Global Solutions (IS&GS) segment and are reported in discontinued operations.
In 2010, our Electronic Systems segment realigned its lines of business which now operate as Mission Systems & Sensors
(MS2), Missiles & Fire Control (M&FC), and Global Training & Logistics (GT&L). The realignment included the movement of two
IS&GS businesses, Readiness & Stability Operations (RSO) and Savi Technology, Inc., to Electronic Systems. The realignment
resulted in the combination of our ground vehicles programs, which were previously reported in the former Platforms & Training
(P&T) line of business and included the Joint Light Tactical Vehicle program, with M&FC. We also realigned RSO and Savi
Technology, Inc. with Electronic Systems’ simulation, training and support business (previously included in the former P&T line of
business) to form GT&L. We combined the remaining elements of the former P&T line of business with the former Maritime
Systems & Sensors line of business to form MS2. The following description of our business segments reflects these activities.
Business Segments
We operate in four principal business segments: Aeronautics, Electronic Systems, IS&GS, and Space Systems. For more
information concerning our segment presentation, including comparative segment sales, operating profits, and related financial
information for 2010, 2009, and 2008, see Note 5 – Information on Business Segments beginning on page 61 of this Form 10-K.