Lockheed Martin 2003 Annual Report Download - page 19

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FINANCIAL SECTION ROADMAP
The financial section of our Annual Report includes management’s
discussion and analysis, our consolidated financial statements,
notes to those financial statements and a 5 year summary of finan-
cial information. We have prepared the following summary, or
“roadmap,” to assist in your review of the financial section. It is
designed to give you an overview of our company and focus your
review by directing you to some of the more important activities and
events that occurred this year.
Lockheed Martin’s Business
Lockheed Martin Corporation is mainly involved in the research,
design, development, manufacture, integration, operation and sup-
port of advanced technology systems, products and services. We
have customers in domestic and international defense, civil govern-
ment, and commercial markets, and over 75% of our sales over the
past three years have been to agencies of the U.S. Government. Our
main areas of focus are in the defense, space, homeland security,
and government information technology markets.
We operate in five principal business segments: Aeronautics,
Electronic Systems, Space Systems, Integrated Systems &
Solutions and Information & Technology Services. As a lead sys-
tems integrator, our products and services range from aircraft,
spacecraft and launch vehicles to missiles, electronics and informa-
tion systems, including integrated net-centric solutions.
Financial Section Overview
The financial section includes the following:
Management’s discussion and analysis, or MD&A (pages 17
through 39) — provides management’s view about industry trends,
risks and uncertainties relating to Lockheed Martin, accounting
policies that we view as critical in light of our business, our results
of operations, including discussions about the key performance
drivers of each of our business segments, our financial position and
cash flows, commitments and contingencies, important events or
transactions that have occurred over the last three years, and for-
ward-looking information, as appropriate.
Financial statements, notes to the financial statements and
related reports —
Reports related to the financial statements
(pages 40 through 41) — include the following:
•A report from our management, indicating our responsibility for
financial reporting and maintaining an internal control environ-
ment, and
•A report from our independent auditors, Ernst & Young LLP,
which includes their opinion about the fair presentation of our
financial statements based on their audits. The report includes
their opinion about the conformity of our financial statements,
which includes the notes to the financial statements, with
accounting principles that are generally accepted in the United
States (GAAP).
Financial statements (pages 42 through 45) — include our con-
solidated statements of operations, cash flows and stockholders’
equity for each of the last three years, and our balance sheet as of
the end of the last two years. Our financial statements are prepared
in accordance with GAAP.
Notes to the financial statements (pages 46 through 68) — pro-
vide insight into and are an integral part of our financial statements.
There are explanations of our significant accounting policies,
details about certain of the captions on the financial statements,
information about significant events or transactions that have
occurred, discussions about commitments and contingencies, and
selected financial information relating to our business segments.
The notes to the financial statements also are prepared in accor-
dance with GAAP.
Highlights
The financial section of our Annual Report describes our on-
going operations, including discussions about particular lines of
business or programs, our ability to finance our operating activi-
ties, and trends and uncertainties in our industry and how they
might affect our future operations. We also discuss those items
affecting our results that were not considered in senior manage-
ment’s assessment of the operating performance of our business
segments. We separately disclose these items to assist in your eval-
uation of our overall operating performance and financial condi-
tion of the consolidated company.
Lockheed Martin Corporation
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
December 31, 2003
17