Lockheed Martin 2002 Annual Report Download - page 29

Download and view the complete annual report

Please find page 29 of the 2002 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 79

  • 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
  • 79

THIRTY-SIX
Lockheed Martin Corporation
MANAGEMENT’SDISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
December 31, 2002
Our results of operations for 2002, 2001 and 2000
included the effects of various unusual items. The impact of
these items on operating profit (earnings from continuing
operations before interest and taxes), net earnings (loss) and
amounts per diluted share is as follows:
Effects of unusual items:
Operating Net Earnings
(Loss) (Loss) per Diluted
(In millions)
Profit Earnings Share
YEAR ENDED DECEMBER 31, 2002
Continuing operations
Write-down of
telecommunications
investments $(776) $ (504) $(1.12)
Charge related to
Russian advances (173) (112) (0.25)
Write-down of investment
in Space Imaging and
charge related to
recording of guarantee (163) (106) (0.23)
R&D tax credit settlement —900.20
$(1,112) $ (632) $(1.40)
YEAR ENDED DECEMBER 31, 2001
Continuing operations
Write-off of investment in
Astrolink and related costs $ (387) $ (267) $(0.62)
Write-down of investment
in Loral Space (361) (235) (0.54)
Other charges related to
global telecommunications (176) (117) (0.27)
Impairment charge related
to Americom Asia-Pacific (100) (65) (0.15)
Loss on early
repayment of debt (55) (36) (0.08)
Other portfolio
shaping activities (5) (3) (0.01)
Gain on sale of surplus
real estate 111 72 0.17
(973) (651) (1.50)
Discontinued operations—
Charges related to discontinued
businesses, net of IMS gain — (1,027) (2.38)
$(973) $(1,678) $(3.88)
Operating Net Earnings
(Loss) (Loss) per Diluted
(In millions)
Profit Earnings Share
YEAR ENDED DECEMBER 31, 2000
Continuing operations
Loss related to
AES Transaction $ (598) $ (878) $(2.18)
Loss on early
repayment of debt (146) (95) (0.24)
Charge related to
Globalstar guarantee (141) (91) (0.23)
Impairment charge
related to ACeS (117) (77) (0.19)
Other portfolio shaping items (46) (30) (0.07)
Gain on sale of Control Systems 302 180 0.45
Partial reversal of
CalComp reserve 33 21 0.05
Gain on sales of surplus
real estate 28 19 0.05
$(685) $ (951) $(2.36)
Our operating profit for 2002 was $1.2 billion, an increase
of 39% compared to 2001. Our operating profit for 2001 was
$833 million, a decrease of 25% compared to 2000. These
amounts included the impacts of unusual items which reduced
operating profit for 2002, 2001 and 2000 by $1,112 million,
$973 million and $685 million, respectively. The results for
2001 and 2000 included amortization expense of $274 million
and $297 million, respectively, for goodwill and certain other
intangibles that was not included in 2002 due to the adoption
of FAS 142. Adjusting for the effects of the unusual items and
the adoption of FAS 142 for each year, operating profit for
2002 would have been $2.3 billion, a 9% increase over the
operating profit of $2.1 billion in 2001. The operating profit
for 2001 would have remained comparable to operating profit
of $2.1 billion in 2000.
Operating profit in 2002 increased in all four business
segments when compared to 2001. When comparing 2001 to
2000, increases in the Aeronautics, Space Systems and
Technology Services segments were offset by a decrease in
operating profit in Systems Integration.