LMT » Topics » Acquisitions

These excerpts taken from the LMT 10-K filed Feb 26, 2009.

Acquisitions

We used approximately $233 million in 2008 for acquisition activities, including the acquisitions of businesses and investments in affiliates. Those activities included the acquisition of, among others, Eagle Group International, LLC, which provides logistics, information technology, training and healthcare services to the U.S. Department of Defense. We used approximately $337 million in 2007 for acquisition activities, including an additional contribution of $177 million related to our investment in ULA discussed below. Those activities also included the acquisition of, among others, Management Systems Designers, Inc., a provider of information technology (IT) and scientific solutions supporting government life science, national security, and other civil agency missions. We used approximately $1.1 billion in 2006 for acquisition activities including the acquisition of, among others, Pacific Architects and Engineers, Inc., a provider of services to support military readiness, peacekeeping missions, nation-building activities, and disaster relief services. In each year, the amounts used for acquisitions included certain payments related to businesses acquired in prior years.

We accounted for the acquisitions under the purchase method of accounting, and therefore recorded purchase accounting adjustments by allocating the purchase price to the assets acquired and liabilities assumed based on their estimated fair values. The acquisitions were not material to our consolidated results of operations in 2008, 2007 or 2006.

 

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Acquisitions

We used cash in 2008, 2007, and 2006 for acquisition activities, including the acquisitions of businesses and investments in affiliates. The amounts used in each year also included certain payments related to acquisitions completed in years prior to the respective years. We have accounted for the acquisition of businesses under the purchase method of accounting by allocating the purchase price to the assets acquired and liabilities assumed based on their estimated fair values.

We used approximately $233 million in 2008 for acquisition activities including the acquisition of, among others, Eagle Group International, LLC, which provides logistics, information technology, training, and healthcare services to the U.S. Department of Defense. Purchase accounting adjustments recorded related to business acquisitions completed in 2008 included recording goodwill aggregating $170 million, $93 million of which will be amortized for tax purposes, and $18 million of other intangible assets, primarily relating to the value of contracts we acquired.

 

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We used a total of approximately $337 million in 2007 for acquisition activities, including an additional contribution of $177 million related to our investment in ULA discussed below. Those activities also included the acquisition of, among others, Management Systems Designers, Inc., a provider of information technology (IT) and scientific solutions supporting government life science, national security, and other civil agency missions. Purchase accounting adjustments recorded related to business acquisitions completed in 2007 included recording goodwill aggregating $120 million, none of which will be amortized for tax purposes, and $12 million of other intangible assets, primarily relating to the value of contracts we acquired.

We used a total of approximately $1.1 billion in 2006 for acquisition activities including the acquisition of, among others, Pacific Architects and Engineers, Inc. (PAE), a provider of services to support military readiness, peacekeeping missions, nation-building activities, and disaster relief services; Savi Technology, Inc., a developer of active radio frequency identification solutions; and Aspen Systems Corporation, an information management company that delivers a range of business process and technology solutions. Purchase accounting adjustments in 2006 included recording goodwill aggregating $867 million, of which approximately $80 million will be amortized for tax purposes, and $209 million of other intangible assets, primarily relating to the value of contracts we acquired. The other intangible assets are expected to be amortized over a period of seven years.

These acquisitions were not material to our consolidated results of operations for the years ended December 31, 2008, 2007, and 2006.

This excerpt taken from the LMT 10-K filed Feb 28, 2008.

Acquisitions

We used a total of approximately $160 million in 2007 for acquisition activities including the acquisition of, among others, Management Systems Designers Inc., a provider of information technology (IT) and scientific solutions supporting government life science, national security, and other civil agency missions. The amount also includes certain payments related to acquisitions completed in prior years. We account for the acquisition of businesses under the purchase method of accounting by allocating the purchase price to the assets acquired and liabilities assumed based on their estimated fair values. Purchase accounting adjustments recorded related to business acquisitions completed in 2007 included recording Goodwill

 

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aggregating $120 million, none of which will be amortized for tax purposes, and $12 million of other intangible assets, primarily relating to the value of contracts we acquired. The acquisitions were not material to our consolidated results of operations for the year ended December 31, 2007.

In 2006 and 2005, we completed acquisitions of the following businesses.

Year ended December 31, 2006 –

   

Pacific Architects and Engineers, Inc. (PAE), a provider of services to support military readiness, peacekeeping missions, nation-building activities, and disaster relief services;

   

Savi Technology, Inc., a developer of active radio frequency identification solutions;

   

Aspen Systems Corporation, an information management company that delivers a range of business process and technology solutions;

   

ISX Corporation, a provider of military decision systems and other information technology solutions; and

   

HMT Vehicles, a military vehicle design company.

The aggregate cash paid for the 2006 acquisitions was $1.0 billion. The total amount paid for acquisitions, including amounts paid in 2006 related to acquisitions completed in 2005, was $1.1 billion. Purchase accounting adjustments in 2006 included recording combined Goodwill of $867 million, of which approximately $80 million will be amortized for tax purposes, and $209 million of other intangible assets, primarily relating to the value of contracts we acquired. The other intangible assets are expected to be amortized over a period of seven years. These acquisitions were not material to our consolidated results of operations for the year ended December 31, 2006.

Year ended December 31, 2005 –

   

The SYTEX Group, Inc., a provider of information technology solutions and technical support services;

   

STASYS Limited, a U.K.-based technology and consulting firm specializing in network communications and defense interoperability;

   

INSYS Group Limited, a U.K.-based diversified supplier of military communications systems, weapons systems and advanced analysis services; and

   

Coherent Technologies, Inc., a supplier of high-performance, laser-based remote sensing systems.

The aggregate cash paid for the 2005 acquisitions, as well as for amounts paid in 2005 related to acquisitions completed in prior periods, was $564 million. Purchase accounting adjustments included recording Goodwill aggregating $559 million, of which $360 million is being amortized for tax purposes. These acquisitions were not material to our consolidated results of operations for the year ended December 31, 2005.

This excerpt taken from the LMT 10-K filed Feb 26, 2007.

Acquisitions

In 2006 and 2005, we completed acquisitions of the following businesses. There were no significant acquisition activities in 2004.

Year ended December 31, 2006 –

   

Pacific Architects and Engineers, Inc., a provider of services to support military readiness, peacekeeping missions, nation-building activities, and disaster relief services (included in our IT&GS segment);

   

Savi Technology, Inc., a developer of active radio frequency identification solutions (included in our Integrated Systems & Solutions segment);

   

Aspen Systems Corporation, an information management company that delivers a range of business process and technology solutions (included in our IT&GS segment);

   

ISX Corporation, a provider of military decision systems and other information technology solutions (included in our Electronic Systems segment); and

   

HMT Vehicles, a military vehicle design company (included in our Electronic Systems segment).

The aggregate cash paid for the 2006 acquisitions was $1.0 billion. The total amount paid for acquisitions, including amounts paid in 2006 related to acquisitions completed in 2005, was $1.1 billion. Additional payments totaling approximately $106 million are required to be made over the next three years related to these acquisitions, with approximately one-half of that amount payable over the next 12 months. We accounted for the acquisitions under the purchase method of accounting by allocating the purchase price to the assets acquired and liabilities assumed based on their estimated fair values. Purchase accounting adjustments in 2006 included recording combined goodwill of $867 million, of which approximately $80 million will be amortized for tax purposes, and $209 million of other intangible assets, primarily relating to the value of contracts we acquired. The other intangible assets are expected to be amortized over a period of seven years. These acquisitions were not material to our consolidated results of operations for the year ended December 31, 2006.

Year ended December 31, 2005 –

   

The SYTEX Group, Inc., a provider of information technology solutions and technical support services (included in our IT&GS segment);

   

STASYS Limited, a U.K.-based technology and consulting firm specializing in network communications and defense interoperability (included in our IS&S segment);

   

INSYS Group Limited, a U.K.-based diversified supplier of military communications systems, weapons systems and advanced analysis services (included in our Electronic Systems segment); and

   

Coherent Technologies, Inc., a supplier of high-performance, laser-based remote sensing systems (included in the Space Systems segment).

The aggregate cash paid for the 2005 acquisitions, as well as for amounts paid in 2005 related to acquisitions completed in prior periods, was $564 million. We also accounted for these acquisitions under the purchase method of accounting by allocating the purchase price to the assets acquired and liabilities assumed based on their estimated fair values. Purchase accounting adjustments included recording combined goodwill of $559 million, of which $360 million is being amortized for tax purposes. These acquisitions were not material to our consolidated results of operations for the year ended December 31, 2005.

 

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This excerpt taken from the LMT 10-Q filed Oct 27, 2006.

Acquisitions

In the first nine months of 2006, we completed the acquisitions of, among others:

 

    Pacific Architects and Engineers, Inc., a provider of services to support military readiness, peacekeeping missions, nation-building activities, and disaster relief services (included in our I&TS segment);

 

    Savi Technology, Inc., a developer of active radio frequency identification solutions (included in our IS&S segment);

 

    Aspen Systems Corporation, an information management company that delivers a range of business process and technology solutions (included in our I&TS segment);

 

    ISX Corporation, a provider of military decision systems and other information technology solutions for government customers (included in our Electronic Systems segment); and

 

    HMT Vehicles, a military vehicle design company (included in our Electronic Systems segment).

The aggregate cash paid for these acquisitions, as well as for amounts paid in 2006 related to acquisitions completed in 2005, was $1.1 billion. Additional payments totaling approximately $150 million are required to be made over the next three years related to these acquisitions, with the majority payable over the next 12 months. We accounted for these acquisitions under the purchase method of accounting. We recorded preliminary purchase accounting adjustments at September 30, 2006 by allocating the purchase price to the assets acquired and liabilities assumed based on their estimated fair values. Preliminary purchase accounting adjustments included recording combined goodwill of $932 million, of which approximately $80 million will be amortized for tax purposes. These preliminary adjustments and estimates may change when we finalize our analyses. These acquisitions were not material to our consolidated results of operations for the quarter and nine months ended September 30, 2006.

This excerpt taken from the LMT 10-Q filed Jul 26, 2006.

Acquisitions

In the first six months of 2006, we completed the acquisitions of, among others, Savi Technology, Inc., a developer of active radio frequency identification solutions, which is included in our IS&S segment; Aspen Systems Corporation, an information management company that delivers a range of business process and technology solutions, which is included in our I&TS segment; and ISX Corporation, a provider of military decision systems and other information technology solutions for government customers, which is included in our Electronic Systems segment. The aggregate cash paid for these acquisitions, as well as for amounts related to acquisitions completed in 2005, was $474 million. We accounted for these acquisitions under the purchase method of accounting. We recorded preliminary purchase accounting adjustments at June 30, 2006 by allocating the purchase price to the assets acquired and liabilities assumed based on their estimated

 

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Lockheed Martin Corporation

Notes to Unaudited Condensed Consolidated Financial Statements (continued)

 

fair values. Preliminary purchase accounting adjustments included recording combined goodwill of $380 million, of which approximately $80 million will be amortized for tax purposes. These preliminary adjustments and estimates may change when we complete our analysis. These acquisitions were not material to our consolidated results of operations for the quarter and six months ended June 30, 2006.

This excerpt taken from the LMT 10-K filed Feb 28, 2006.

Acquisitions

In 2005, we completed the purchase of The SYTEX Group, Inc. (SYTEX). The total purchase price, including transaction-related costs, was approximately $480 million. Approximately $380 million of the purchase price was paid in cash at closing, with most of the remainder payable in 2006. The acquisition was accounted for under the purchase method of accounting. Purchase accounting adjustments were recorded by allocating the purchase price to the assets acquired and liabilities assumed based on their estimated fair values, and included recording goodwill of $395 million, of which $360 million will be amortized for tax purposes. The acquisition expands the Corporation’s information technology solutions and technical support services businesses with the DoD and other federal agencies. The operations of SYTEX are included in the Information & Technology Services business segment.

In 2005, we also completed the acquisitions of STASYS Limited, a U.K.-based technology and consulting firm specializing in network communications and defense interoperability; INSYS Group Limited, a U.K.-based diversified supplier of military communications systems, weapons systems and advanced analysis services; and Coherent Technologies, Inc., a U.S.-based supplier of high-performance, laser-based remote sensing systems. The aggregate cash purchase price for these three acquisitions was $180 million. Purchase accounting adjustments included recording combined goodwill of $164 million. These acquisitions were not material to our consolidated results of operations for 2005. In January 2006, we acquired Aspen Systems Corporation, a U.S.-based company that provides a range of business process and technology solutions primarily to civil agencies of the U.S. Government. This acquisition is not expected to have a material impact on consolidated results of operations, financial position or cash flows.

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