Lockheed Martin 2007 Annual Report Download - page 11

PART I
ITEM 1. BUSINESS
General
Lockheed Martin Corporation principally researches, designs, develops, manufactures, integrates, operates and sustains
advanced technology systems and products, and provides 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 2007, 84% of our 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 13% of net
sales in 2007, while 3% of our net sales were made to commercial and other customers.
Our principal executive offices are located at 6801 Rockledge Drive, Bethesda, Maryland 20817-1877. Our telephone
number is [phone]. 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 reports 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.
Business Segments
We operate in four principal business segments: Aeronautics, Electronic Systems, Information Systems & Global
Services (IS&GS) and Space Systems. This structure reflects a realignment of our operations announced in early 2007 to
enhance support for critical customer missions and increase our integration of resources. The realignment included the
combination of our former Information Technology & Global Services (IT&GS) and Integrated Systems & Solutions (IS&S)
business segments into the new IS&GS business segment, and the following additional changes:
• The Aircraft & Logistics Centers, which had been reported in IT&GS, became part of Aeronautics;
• Our contract to manage the Sandia National Laboratories and our ownership in the joint venture that manages the
Atomic Weapons Establishment in the United Kingdom, which had been reported in IT&GS, became part of
Electronic Systems; and
• Transportation and Security Solutions, which had been reported in Electronic Systems, became part of IS&GS.
The historical results, discussion and presentation of our business segments as set forth in this Form 10-K reflect this
realignment. For more information concerning our segment presentation, including comparative segment sales, operating
profits and related financial information for 2007, 2006 and 2005, see Note 15—Information on Business Segments
beginning on page 90 of this Form 10-K.
Aeronautics
Aeronautics is engaged in the design, research and development, systems integration, production, sustainment, support
and upgrade of advanced military aircraft, air vehicles and related technologies. Our customers include various government
agencies and the military services of the United States and allied countries around the world. Major products and programs
include design, development, production and sustainment of the F-35 stealth multi-role international coalition fighter; the
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