Lockheed Martin 2003 Annual Report Download - page 42

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The management of Lockheed Martin prepared and is responsible for the consolidated financial statements and all related
financial information contained in this Annual Report. The consolidated financial statements, which include amounts based on esti-
mates and judgments, have been prepared in accordance with accounting principles generally accepted in the United States.
In recognition of its responsibility for the integrity and objectivity of data in the financial statements, the Corporation main-
tains a system of internal controls over financial reporting designed and intended to provide reasonable assurance, based on an
appropriate cost-benefit relationship, that assets are safeguarded and transactions are properly executed and recorded. The
Corporation also maintains a system of disclosure controls and procedures which includes controls and procedures designed to
ensure that information required to be disclosed in its filings with the Securities and Exchange Commission (SEC) is gathered and
communicated to management for timely consideration of disclosure. An environment that provides for an appropriate level of con-
trol consciousness is maintained and monitored and includes examinations by an internal audit staff, examinations by the inde-
pendent auditors in connection with their reviews of interim financial information and their annual audit, and audits by the Defense
Contract Audit Agency of our compliance with federal government rules and regulations applicable to contracts with the U.S.
Government. In addition, a Disclosure Controls Committee assists in monitoring and evaluating disclosure controls and procedures,
and to review interim and annual reports of financial information filed with the SEC for accuracy and completeness.
Essential to the Corporation’s internal control system is management’s dedication to the highest standards of integrity, ethics
and social responsibility. To support these standards, management has issued the Code of Ethics and Business Conduct (the Code)
and developed policy statements that cover, among other topics, maintaining accurate and complete accounting records, proper
business practices, regulatory compliance, potentially conflicting outside interests of employees, and adherence to high standards of
conduct and practices in dealings with customers, including the U.S. Government. The Code provides for a help line that employees
can use to confidentially or anonymously communicate to the Corporation’s ethics office complaints or concerns about accounting,
internal control or auditing matters. These matters, if requested by the employee, must be forwarded directly to the Corporation’s
Audit and Ethics Committee. The importance of ethical behavior is regularly communicated to all employees through the distribu-
tion of the Code, and through ongoing education and review programs designed to create a strong compliance environment.
The Audit and Ethics Committee of the Board of Directors is composed of seven independent directors. This Committee meets
periodically with the independent auditors, internal auditors and management to review their activities. Both the independent audi-
tors and the internal auditors have unrestricted access to meet with members of the Audit and Ethics Committee, with or without
management representatives present.
The Audit and Ethics Committee is responsible for the selection, retention and compensation of the independent auditors. The
consolidated financial statements included in this Annual Report have been audited by Ernst & Young LLP, whose report follows.
Vance D. Coffman Christopher E. Kubasik
Chairman and Chief Executive Officer Senior Vice President and Chief Financial Officer
Robert J. Stevens Rajeev Bhalla
President and Chief Operating Officer Vice President and Controller
Lockheed Martin Corporation
MANAGEMENT’S RESPONSIBILITY FOR FINANCIAL REPORTING