================================================================================ SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ---------------- FORM 8-K CURRENT REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Date of Report (Date of Earliest Event Reported) - October 24, 2000 ------------ LOCKHEED MARTIN CORPORATION (Exact name of registrant as specified in its charter) Maryland 1-11437 52-1893632 (State or other jurisdiction (Commission File Number) (IRS Employer of Incorporation) Identification No.) 6801 Rockledge Drive, Bethesda, Maryland 20817 (Address of principal executive offices) (Zip Code) (301) 897-6000 (Registrant's telephone number, including area code) ------------ Not Applicable (Former name or address, if changed since last report) ================================================================================
Item 5. Other Events Lockheed Martin Corporation (Lockheed Martin or the Corporation) is filing this Current Report on Form 8-K to reflect its Global Telecommunications business as a separate operating segment as discussed in more detail below. In August 2000, Lockheed Martin consummated its merger with COMSAT Corporation (COMSAT). The operations of COMSAT have been included in the results of operations of Lockheed Martin Global Telecommunications (LMGT), a wholly-owned subsidiary of the Corporation, from August 1, 2000. Prior to the merger, the results of operations of LMGT included the Corporation's 49% investment in COMSAT which was acquired on September 18, 1999 and accounted for under the equity method of accounting. The total purchase price for COMSAT, including transaction costs and amounts related to Lockheed Martin's assumption of COMSAT stock options, was approximately $2.6 billion, net of cash balances acquired. In addition to the merger with COMSAT, in October 2000, the Corporation combined the operations of a business unit serving commercial information technology markets with LMGT. LMGT was formed effective January 1, 1999 from the combination of investments in several existing joint ventures and certain other elements of the Corporation previously included in the Systems Integration and Space Systems segments. Amounts related to such investments and elements transferred were not material to the respective segments and, therefore, segment information for periods prior to January 1, 1999 were not restated relative to the formation of LMGT. In accordance with Statement of Financial Accounting Standards No. 131, "Disclosures about Segments of an Enterprise and Related Information," LMGT will be reported as a separate operating segment called Global Telecommunications beginning in the third quarter of 2000. The operations of LMGT and the commercial information technology business unit were previously included in the Corporate and Other segment. The following segment descriptions and financial data have been adjusted to reflect the Corporation's Global Telecommunications business as a separate segment for the periods indicated based on the above information. The Corporation operates in five principal business segments. All other activities of the Corporation fall within the Corporate and Other segment. Following is a brief description of the activities of each business segment: Systems Integration - Engaged in the design, development, integration and production of high performance electronic systems for undersea, shipboard, land, and airborne applications. Major product lines include missiles and fire control systems; air and theater missile defense systems; surface ship and submarine combat systems; anti-submarine and undersea warfare systems; avionics and ground combat vehicle integration; platform integration systems; command, control, communications, computers and intelligence (C4I) systems for naval, airborne and ground applications; surveillance and reconnaissance systems; air traffic control systems; and postal automation systems. Space Systems - Engaged in the design, development, engineering and production of civil, commercial and military space systems. Major product lines include spacecraft, space launch vehicles, manned space systems and their supporting ground systems and services; strategic fleet
ballistic missiles; and defensive missiles. In addition to its consolidated business units, the segment has investments in joint ventures that are principally engaged in businesses which complement and enhance other activities of the segment. Aeronautical Systems - Engaged in design, research and development, and production of tactical aircraft, surveillance/command systems, reconnaissance systems, platform systems integration and advanced development programs. Major programs include the F-22 air-superiority fighter, the Joint Strike Fighter, the F-16 multi-role fighter, the C-130J airlift aircraft, and Airborne Early Warning & Control systems programs. Technology Services - Provides a wide array of management, engineering, scientific, logistic and information services to federal agencies and other customers. Major product lines include engineering, science and information services for NASA; aircraft maintenance and modification services; operation, maintenance, training, and logistics support for military and civilian systems; launch, mission, and analysis services for military, classified and commercial satellites; research, development, engineering and science in support of nuclear weapons stewardship and naval reactor programs. Global Telecommunications - Provides communications services and advanced technology solutions through three lines of business: enterprise solutions, which provides telecommunications services, managed networks and information technology solutions in the U.S. and international markets; satellite services, which provides global fixed and mobile satellite services; and systems and technology, which designs, builds and integrates satellite gateways and provides systems integration services for telecommunications networks. Corporate and Other - Includes the state and local government services line of business. In addition, this segment includes the Corporation's investment in certain other joint ventures and businesses.
Selected Financial Data by Business Segment Six Months Ended June 30, Year Ended December 31, 2000 1999 1999 1998 ------------ ------------ ------------ ------------ (In millions) Net sales - ------------------------------- Systems Integration $ 4,405 $ 4,599 $ 9,570 $ 9,334 Space Systems 3,452 3,618 7,209 8,600 Aeronautical Systems 2,289 2,766 5,499 5,459 Technology Services 1,063 985 2,261 1,935 Global Telecommunications 284 175 389 251 Corporate and Other 281 248 602 687 ------------ ------------ ------------ ------------ $11,774 $12,391 $25,530 $26,266 ------------ ------------ ------------ ------------ Operating profit (loss) - ------------------------------- Systems Integration $ 370 $ 373 $ 880 $ 858 Space Systems 213 210 561 1,045 Aeronautical Systems 168 46 247 649 Technology Services 62 68 137 135 Global Telecommunications (58) (54) (97) (4) Corporate and Other (104) 107 281 (161) ------------ ------------ ------------ ------------ $ 651 $ 750 $ 2,009 $ 2,522 ------------ ------------ ------------ ------------ Intersegment revenue (a) - ------------------------------- Systems Integration $ 223 $ 227 $ 470 $ 630 Space Systems 62 57 135 77 Aeronautical Systems 39 43 88 60 Technology Services 352 307 641 507 Global Telecommunications 7 9 17 6 Corporate and Other 23 21 47 40 ------------ ------------ ------------ ------------ $ 706 $ 664 $ 1,398 $ 1,320 ------------ ------------ ------------ ------------ Depreciation and amortization - ------------------------------- Systems Integration $ 104 $ 106 $ 223 $ 244 Space Systems 67 76 165 185 Aeronautical Systems 43 39 82 74 Technology Services 8 6 14 12 Global Telecommunications 11 1 5 2 Corporate and Other 18 20 40 52 ------------ ------------ ------------ ------------ $ 251 $ 248 $ 529 $ 569 ------------ ------------ ------------ ------------ (a) Intercompany transactions between segments are eliminated in consolidation, and excluded from the net sales and operating profit (loss) amounts presented above.
Selected Financial Data by Business Segment (continued) Six Months Ended June 30, Year Ended December 31, 2000 1999 1999 1998 ------------ ------------ ------------ ------------ (In millions) Amortization of intangible assets - --------------------------------- Systems Integration $ 136 $ 137 $ 276 $ 273 Space Systems 28 28 57 60 Aeronautical Systems 40 40 80 80 Technology Services 9 9 18 18 Global Telecommunications 15 - 8 - Corporate and Other 1 1 1 5 ------------ ------------ ------------ ------------ $ 229 $ 215 $ 440 $ 436 ------------ ------------ ------------ ------------ Nonrecurring and unusual items included in operating profit (loss) - --------------------------------- Systems Integration $ - $ - $ 13 $ 4 Space Systems 17 (20) 21 - Aeronautical Systems - - - - Technology Services (6) - - - Global Telecommunications - - - - Corporate and Other (109) 114 215 (166) ------------ ------------ ------------ ------------ $ (98) $ 94 $ 249 $ (162) ------------ ------------ ------------ ------------
Selected Financial Data by Business Segment (continued) June 30, December 31, 2000 1999 1998 ------------------- ------------------- ------------------- (In millions) Backlog - ---------------------------------- Systems Integration $17,801 $13,971 $12,524 Space Systems 15,181 15,998 17,330 Aeronautical Systems 17,119 9,003 10,265 Technology Services 4,454 4,399 3,503 Global Telecommunications 1,549 1,533 763 Corporate and Other 968 1,009 960 ---------- ---------- ---------- $57,072 $45,913 $45,345 ---------- ---------- ---------- Assets - ---------------------------------- Systems Integration $12,042 $12,209 $12,307 Space Systems 5,648 6,060 6,356 Aeronautical Systems 3,181 3,206 3,593 Technology Services 1,449 1,484 1,421 Global Telecommunications 2,214 2,145 71 Corporate and Other 5,358 4,908 4,996 ---------- ---------- ---------- $29,892 $30,012 $28,744 ---------- ---------- ---------- Customer advances and amounts in excess of costs incurred - ---------------------------------- Systems Integration $ 951 $ 1,039 $ 756 Space Systems 2,245 2,553 2,136 Aeronautical Systems 1,753 899 1,052 Technology Services 21 31 30 Global Telecommunications 174 132 2 Corporate and Other 1 1 36 ---------- ---------- ---------- $ 5,145 $ 4,655 $ 4,012 ---------- ---------- ----------
SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. LOCKHEED MARTIN CORPORATION /s/ Marian S. Block --------------------------------- Marian S. Block Vice President, Associate General Counsel and Assistant Secretary October 24, 2000