Lockheed Martin 2003 Annual Report Download - page 70

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Lockheed Martin Corporation
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
December 31, 2003
68
Net Sales by Customer Category
(In millions) 2003 2002 2001
U.S. GOVERNMENT
Aeronautics $ 6,613 $ 4,483 $ 3,437
Electronic Systems 7,363 6,910 6,114
Space Systems 4,928 4,303 4,148
Integrated Systems & Solutions 3,252 2,804 2,646
Information & Technology Services 2,799 2,735 2,269
$24,955 $ 21,235 $18,614
FOREIGN GOVERNMENTS(a)(b)
Aeronautics $ 3,580 $ 1,971 $ 1,899
Electronic Systems 1,467 1,592 1,804
Space Systems ——36
Integrated Systems & Solutions 16 51 44
Information & Technology Services 79 76 104
$ 5,142 $ 3,690 $ 3,887
COMMERCIAL(b)
Aeronautics $9$17$19
Electronic Systems 161 183 161
Space Systems 1,093 984 617
Integrated Systems & Solutions 152 160 280
Information & Technology Services 296 293 390
Total business segments 1,711 1,637 1,467
Other 16 16 22
$ 1,727 $ 1,653 $ 1,489
(a) Sales made to foreign governments through the U.S. Government are
included in the foreign governments category above.
(b) International sales, including export sales included in the foreign govern-
ments and commercial categories above, were approximately $5.6 billion,
$4.3 billion and $4.1 billion in 2003, 2002 and 2001, respectively.
NOTE 17 — SUMMARY OF QUARTERLY
INFORMATION (UNAUDITED)
2003 Quarters
(In millions, except
per share data) First(a) Second(b) Third(c) Fourth(d)
Net sales $ 7,059 $ 7,709 $ 8,078 $ 8,978
Earnings from operations 472 410 538 556
Net earnings 250 242 217 344
Earnings per diluted share 0.55 0.54 0.48 0.77
2002 Quarters
(In millions, except
per share data) First Second(e) Third Fourth(f)
Net sales $ 5,966 $ 6,290 $ 6,542 $ 7,780
Earnings from operations 438 483 553 475
Earnings (loss) from
continuing operations 224 351 300 (342)
Net earnings (loss) 218 339 290 (347)
Earnings (loss) per
diluted share from
continuing operations 0.50 0.78 0.66 (0.76)
Earnings (loss) per
diluted share 0.49 0.75 0.64 (0.77)
(a) Net earnings for the first quarter of 2003 included the following items: a
charge related to the early repayment of debt which decreased net earn-
ings by $13 million ($0.03 per diluted share); and partial reversal of a
charge recorded in 2002 related to Space Imaging which increased net
earnings by $13 million ($0.03 per diluted share).
(b) Net earnings for the second quarter of 2003 included a charge related to
the Corporation’s decision to exit the commercial mail sorting business
which reduced net earnings by $27 million ($0.06 per diluted share).
(c) Net earnings for the third quarter of 2003 included a charge related to the
early repayment of debt which decreased net earnings by $83 million
($0.18 per diluted share).
(d) Net earnings for the fourth quarter of 2003 included a gain from the sale
of the Corporation’s commercial IT business which increased net earnings
by $8 million ($0.02 per diluted share).
(e) Net earnings for the second quarter of 2002 included the effects of a set-
tlement of a research and development tax credit claim. The settlement
increased net earnings by $90 million ($0.20 per diluted share) and was
recorded as a reduction of income tax expense.
(f) The net loss for the fourth quarter of 2002 included the following: impair-
ment charges related to certain of the Corporation’s telecommunications
equity investments which increased the net loss by $504 million ($1.12 per
diluted share); a charge related to advances to a Russian launch vehicle
manufacturer which increased the net loss by $112 million ($0.25 per
diluted share); and a charge related to the Corporation’s investment in and
its guarantee of certain obligations of Space Imaging which increased the
net loss by $106 million ($0.24 per diluted share).