Form 11-K
Table of Contents

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

FORM 11-K

 

 

ANNUAL REPORT PURSUANT TO SECTION 15(d) OF

THE SECURITIES EXCHANGE ACT OF 1934

 

For the Fiscal Year Ended December 31, 2012   Commission File No. 1-11437

 

 

 

A. Full title of the plan and the address of the plan, if different from that of the issuer named below:

LOCKHEED MARTIN CORPORATION

SALARIED SAVINGS PLAN

 

B. Name of issuer of the securities held pursuant to the plan and the address of its principal executive office:

LOCKHEED MARTIN CORPORATION

6801 Rockledge Drive

Bethesda, MD 20817

 

 

 


Table of Contents

Lockheed Martin Corporation

Salaried Savings Plan

Financial Statements and Supplemental Schedule

Year ended December 31, 2012

Contents

 

Report of Independent Registered Public Accounting Firm

     1   

Financial Statements for the Lockheed Martin Corporation Salaried Savings Plan

  

Statement of Net Assets Available for Benefits

     2-3   

Statement of Changes in Net Assets Available for Benefits

     4   

Notes to Financial Statements

     5   

Supplemental Schedule

  

Schedule H, Line 4i - Schedule of Assets (Held at End of Year)

     14   

Signature

     33   

Exhibit Index

     34   


Table of Contents

Report of Independent Registered Public Accounting Firm

Plan Administrator

Lockheed Martin Corporation

Salaried Savings Plan

We have audited the accompanying statements of net assets available for benefits of the Lockheed Martin Corporation Salaried Savings Plan as of December 31, 2012 and 2011, and the related statement of changes in net assets available for benefits for the year ended December 31, 2012. These financial statements are the responsibility of the Plan’s management. Our responsibility is to express an opinion on these financial statements based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. We were not engaged to perform an audit of the Plan’s internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Plan’s internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the net assets available for benefits of the Lockheed Martin Corporation Salaried Savings Plan at December 31, 2012 and 2011, and the changes in its net assets available for benefits for the year ended December 31, 2012, in conformity with U.S. generally accepted accounting principles.

Our audits were conducted for the purpose of forming an opinion on the financial statements taken as a whole. The accompanying supplemental schedule of assets (held at end of year) as of December 31, 2012, is presented for purposes of additional analysis and is not a required part of the financial statements but is supplementary information required by the Department of Labor’s Rules and Regulations for Reporting and Disclosure under the Employee Retirement Income Security Act of 1974. Such information is the responsibility of the Plan’s management. The information has been subjected to the auditing procedures applied in our audits of the financial statements and, in our opinion, is fairly stated in all material respects in relation to the financial statements taken as a whole.

/s/ Mitchell & Titus, LLP

Washington, DC

June 21, 2013

 

1


Table of Contents

Lockheed Martin Corporation Salaried Savings Plan

Statement of Net Assets Available for Benefits

December 31, 2012

 

     ESOP
Fund
     401(h)
Trust
     Participant-
Directed
Investments
    Total  
     (In thousands)  

Assets

          

Investments:

          

Interest in Lockheed Martin Corporation Defined Contribution Plans Master Trust

   $ 3,201,786       $ —         $ 18,612,961      $ 21,814,747   

Net assets held in 401(h) trust

     —           340,745         —          340,745   

Receivables:

          

Participant contributions

     —           —           15,173        15,173   

Lockheed Martin Corporation contributions

     5,179         —           —          5,179   

Notes receivable from participants

     —           —           234,353        234,353   
  

 

 

    

 

 

    

 

 

   

 

 

 

Total assets

     3,206,965         340,745         18,862,487        22,410,197   

Liabilities

          

Administrative expenses payable

     —           —           2,246        2,246   

Amounts related to obligation of 401(h) trust

     —           340,745         —          340,745   
  

 

 

    

 

 

    

 

 

   

 

 

 

Total liabilities

     —           340,745         2,246        342,991   
  

 

 

    

 

 

    

 

 

   

 

 

 

Net assets reflecting investments at fair value

     3,206,965         —           18,860,241        22,067,206   

Adjustment from fair value to contract value for fully benefit-responsive investment contracts

     —           —           (87,819     (87,819
  

 

 

    

 

 

    

 

 

   

 

 

 

Total net assets available for benefits

   $ 3,206,965       $ —         $ 18,772,422      $ 21,979,387   
  

 

 

    

 

 

    

 

 

   

 

 

 

See accompanying notes to financial statements.

 

2


Table of Contents

Lockheed Martin Corporation Salaried Savings Plan

Statement of Net Assets Available for Benefits

December 31, 2011

 

     ESOP
Fund
     401(h)
Trust
     Participant-
Directed
Investments
    Total  
     (In thousands)  

Assets

          

Investments:

          

Interest in Lockheed Martin Corporation Defined Contribution Plans Master Trust

   $ 2,982,608       $ —         $ 16,688,089      $ 19,670,697   

Net assets held in 401(h) trust

     —           313,907         —          313,907   

Receivables:

          

Participant contributions

     —           —           15,195        15,195   

Lockheed Martin Corporation contributions

     5,193         —           —          5,193   

Notes receivable from participants

     —           —           238,436        238,436   
  

 

 

    

 

 

    

 

 

   

 

 

 

Total assets

     2,987,801         313,907         16,941,720        20,243,428   

Liabilities

          

Administrative expenses payable

     —           —           2,861        2,861   

Amounts related to obligation of 401(h) trust

     —           313,907         —          313,907   
  

 

 

    

 

 

    

 

 

   

 

 

 

Total liabilities

     —           313,907         2,861        316,768   
  

 

 

    

 

 

    

 

 

   

 

 

 

Net assets reflecting investments at fair value

     2,987,801         —           16,938,859        19,926,660   

Adjustment from fair value to contract value for fully benefit-responsive investment contracts

     —           —           (67,300     (67,300
  

 

 

    

 

 

    

 

 

   

 

 

 

Total net assets available for benefits

   $ 2,987,801       $ —         $ 16,871,559      $ 19,859,360   
  

 

 

    

 

 

    

 

 

   

 

 

 

See accompanying notes to financial statements.

 

3


Table of Contents

Lockheed Martin Corporation Salaried Savings Plan

Statement of Changes in Net Assets Available for Benefits

Year ended December 31, 2012

 

     ESOP
Fund
     Participant-
Directed
Investments
     Total  
     (In thousands)  

Net assets available for benefits at beginning of year

   $ 2,987,801       $ 16,871,559       $ 19,859,360   
  

 

 

    

 

 

    

 

 

 

Additions to net assets:

        

Contributions:

        

Participant

     34,763         853,454         888,217   

Lockheed Martin Corporation

     286,917         —           286,917   
  

 

 

    

 

 

    

 

 

 

Total contributions

     321,680         853,454         1,175,134   

Interest income on notes receivable from participants

     —           21,430         21,430   

Net investment gain from participation in Lockheed Martin Corporation Defined Contribution Plans Master Trust

     563,112         1,889,283         2,452,395   
  

 

 

    

 

 

    

 

 

 

Total additions

     884,792         2,764,167         3,648,959   

Deductions from net assets:

        

Distributions and withdrawals

     665,454         837,959         1,503,413   

Administrative expenses

     174         29,053         29,227   
  

 

 

    

 

 

    

 

 

 

Total deductions

     665,628         867,012         1,532,640   
  

 

 

    

 

 

    

 

 

 

Change in net assets

     219,164         1,897,155         2,116,319   

Transfers from other plans

     —           3,708         3,708   
  

 

 

    

 

 

    

 

 

 

Net assets available for benefits at end of year

   $ 3,206,965       $ 18,772,422       $ 21,979,387   
  

 

 

    

 

 

    

 

 

 

See accompanying notes to financial statements.

 

4


Table of Contents

Lockheed Martin Corporation Salaried Savings Plan

Notes to Financial Statements

 

1. Description of the Plan

The following description of the Lockheed Martin Corporation Salaried Savings Plan (the Plan) provides only general information. Participants should refer to the Summary Plan Description for a more complete description of the Plan’s provisions.

General

The Plan is a defined contribution plan covering all salaried employees of Lockheed Martin Corporation (Lockheed Martin or the Corporation) in groups to which Plan participation is extended by the Corporation, including employees in the United States and certain U.S. citizens working abroad.

The assets of the Plan, excluding the receivables, are held and invested on a commingled basis in the Lockheed Martin Corporation Defined Contribution Plans Master Trust (the Master Trust) under an agreement between Lockheed Martin and State Street Bank and Trust Company (the Trustee). The recordkeeper is ING. Lockheed Martin is the Plan Sponsor and the Plan Administrator.

The Plan includes an Employee Stock Ownership Plan (ESOP) feature. Cash dividends declared on Lockheed Martin common stock allocated to participants’ accounts under the Employee Stock Ownership Plan Fund (ESOP Fund) and dividends received related to the Lockheed Martin Stock Fund may be reinvested in the participant’s account or distributed to the participant, at the discretion of the participant. In the event the participant does not make an election, the allocated dividends will be reinvested in the participant’s account. In order for dividends to be distributed to a participant, the participant’s balances in the Corporation’s stock must be held under the ESOP Fund or the Lockheed Martin Stock Fund as of the close of business on the day before the ex-dividend date. Any distribution of dividends to a participant must not occur later than 90 days following the plan year in which the dividend was paid.

Contributions

Eligible employees are automatically enrolled in the Plan at a rate of 3% of their base salary in before-tax contributions. The Plan has an auto-escalation feature whereby contributions for those automatically enrolled are increased 1% each year up to 8%. The Plan allows eligible employees to make contributions on a before-tax, after-tax, or Roth 401(k) basis. Each year, eligible employees can make contributions of up to 25% of the employee’s base salary, subject to regulatory limitations. The Corporation generally contributes an amount equal to 50% of the first 8% of the participant’s basic contribution. Participants are immediately vested in all employer contributions. Substantially all employer contributions to the Plan consist of the Corporation’s common stock invested in the ESOP Fund.

Participant contributions may be invested in one or more of the available investment funds at the participant’s election. Participants may change the investment mix of their account balance up to 12 times during a calendar year. In addition, the participant will always be provided at least one trading opportunity each calendar quarter regardless of the number of prior investment trades they placed for the year. The participant will have one final opportunity to transfer all or part of their transferable account balance to the Stable Value Fund during the fourth quarter of the year. Amounts that are transferred out of the Stable Value Fund must remain invested in a Core or Target Date Fund for at least 90 days before they are eligible to be transferred into the Government Short Term Fund, the Treasury Inflation-Protected Securities (TIPS) Fund, or the Self-Managed Account (SMA). Participants may make an unlimited number of transfers out of the Lockheed Martin Stock Fund or the ESOP Fund.

An option available to participants is the SMA, whereby a participant may elect to invest up to 75% of the participant’s transferable account balance in stocks, mutual funds, bonds, or other investments offered by the Plan at the participant’s direction. No investment contribution may be made directly to the SMA. A participant’s initial transfer to the SMA must be at least $3,000, and subsequent transfers must be at least $1,000. No distribution, withdrawal, or loan may be made directly from the assets in the SMA.

The Plan permits catch-up contributions for participants age 50 or older as permitted by the provisions of the Economic Growth and Tax Relief Reconciliation Act of 2001.

Participant Accounts

Each participant’s account is credited with the participant’s contribution, the employer’s matching contribution and the respective investment earnings or losses, less expenses, of the individual funds in which the account is invested.

 

5


Table of Contents

Lockheed Martin Corporation Salaried Savings Plan

Notes to Financial Statements

 

Notes Receivable from Participants

Each participant may borrow from their total account balance a minimum of $500 and up to a maximum amount equal to the lesser of 50% of their account balance or $50,000 (minus their highest outstanding loan balance from the past 12 months, if any). The loans are secured by the balance in the participant’s account and bear interest of 1% over a published prime rate. Principal and interest are paid ratably through weekly payroll deductions. Notes receivable from participants are measured at their unpaid principal balance plus any accrued but unpaid interest.

Payment of Benefits

On termination of service due to death, disability or retirement, a participant or beneficiary may elect to receive his or her account balance through a number of payout options. A participant is entitled to the account balance at the time his or her employment with the Corporation ends.

Plan Termination

Although it has not expressed any intent to do so, the Board of Directors of Lockheed Martin has the right to amend, suspend or terminate the Plan at any time, subject to the provisions of the Employee Retirement Income Security Act of 1974 (ERISA). In the event of Plan termination, participants will receive a payment equal to the total value of their accounts.

Transfer of Assets

Effective January 1, 2010, most salaried employees in the Corporation’s Information Systems & Global Solutions business area who were participating in the Lockheed Martin Corporation Operations Support Savings Plan (OSSP) stopped participating in the OSSP and began participating in the Plan. In 2011, most of these employees had their account balances transferred from the OSSP to the Plan. Account balances of these employees with outstanding loans in the OSSP were not transferred; however, these account balances are subject to transfer to the Plan when the loans are repaid. During 2012, assets of the OSSP in amount of $3,417,000 were transferred to the Plan.

In 2012, net assets of $291,000 were transferred to the Plan from the Resource Management, Inc. 401(k) Plan. This amount reflects the participant account balances of current and former employees of Procerus Technologies, L.C., a business that was acquired by the Corporation in 2012.

ESOP Feature

There were 34,653,315 and 36,469,315 shares of Lockheed Martin common stock in the ESOP Fund as of December 31, 2012 and 2011, respectively.

401(h) Arrangement

The Plan has an arrangement that qualifies under Section 401(h) of the Internal Revenue Code (the IRC). The 401(h) arrangement is used by the Corporation to fund in part the Corporation’s portion of post-retirement medical expenses incurred under various medical plans sponsored by the Corporation for salaried employees who retired on or after January 1, 1993. In accordance with Section 401(h) of the IRC, the Plan’s investment in the 401(h) account may not be used, or diverted for any purpose other than providing health and welfare benefits for retirees. Plan participants do not contribute to the 401(h) account. Employer contributions or qualified transfers to the 401(h) account are determined annually at the discretion of the Corporation. The assets of the 401(h) account are held by the Northern Trust Company.

 

2. Summary of Significant Accounting Policies

Basis of Accounting

The financial statements of the Plan are prepared based on the accrual basis of accounting.

 

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Table of Contents

Lockheed Martin Corporation Salaried Savings Plan

Notes to Financial Statements

 

Use of Estimates

The preparation of financial statements in conformity with U.S. generally accepted accounting principles (GAAP) requires management to make estimates and assumptions that affect the reported amount of assets and liabilities and changes therein, and disclosure of contingent assets and liabilities. Actual results could differ from those estimates.

Payment of Benefits

Benefits are recorded when paid.

Risks and Uncertainties

The Plan, through the Master Trust, invests in various investment securities. Investment securities are exposed to various risks such as interest rate, market, and credit risks. Due to the level of risk associated with certain investment securities, it is at least reasonably possible that changes in the values of investment securities will occur in the near term and that such changes could materially affect participants’ account balances and the amounts reported in the Statements of Net Assets Available for Benefits.

Investment Valuation and Income Recognition

Investments in the Master Trust are reported at fair value. Fair value is the price that would have been received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. See Note 7 for additional disclosure of fair value measurements. Purchases and sales of securities in the Master Trust are recorded on a trade-date basis. Interest income is recorded on the accrual basis. Dividends are recorded on the ex-dividend date. Net realized and unrealized gain/loss on investments bought and sold as well as held during the year are included in net investment gain from the Master Trust on the Statement of Changes in Net Assets Available for Benefits.

Administrative Expenses

Direct administrative expenses are paid by the Master Trust and generally allocated to the Plan either on a pro rata basis or directly if specifically related to the Plan. Other indirect administrative expenses are paid by the Corporation.

Recent Accounting Pronouncements

In May 2011, the FASB issued amended guidance to converge the fair value measurement guidance in GAAP with International Financial Reporting Standards. Some of the amendments clarify the application of existing fair value measurement requirements, while other amendments change a particular principle or requirement for measuring fair value or for disclosing information about fair value measurements. The amended guidance became effective for the Plan on January 1, 2012 and did not have a material impact on the Plan’s financial statements and disclosures.

 

3. Reconciliation of Financial Statements to Form 5500

The Plan’s interest in the Master Trust on the Statement of Net Assets Available for Benefits exceeded the related amount on the Form 5500 as of December 31, 2012 and 2011 by $87,819,000 and $67,300,000, respectively, due to the adjustment from fair value to contract value for fully benefit responsive investment contracts.

The net assets of the 401(h) trust are reflected as net assets available for benefits on the Form 5500, but not in these financial statements as they may only be used to pay retiree medical benefits. Differences in the Plan’s interest in the net investment gain in the Master Trust and administrative expenses reported in the financial statements arose from the classification of certain administrative expenses and interest income on notes receivable from participants, which are included in the net investment gain in the Master Trust for Form 5500 reporting purposes.

 

     December 31,  
     2012      2011  
     (In thousands)  

Net assets available for benefits per the financial statements

   $ 21,979,387       $ 19,859,360   

Add: Net assets held in 401(h) trust per Form 5500

     340,745         313,907   
  

 

 

    

 

 

 

Net assets available for benefits per the Form 5500

   $ 22,320,132       $ 20,173,267   
  

 

 

    

 

 

 

 

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Table of Contents

Lockheed Martin Corporation Salaried Savings Plan

Notes to Financial Statements

 

The following is a reconciliation of the changes in net assets available for benefits for the year ended December 31, 2012, per the financial statements to the Form 5500:

 

     Amounts per
Financial
Statements
    401(h)
Trust
    Amounts per
Form 5500
 
     (In thousands)  

Interest and dividend income

   $ —        $ 6,311      $ 6,311   

Net realized and unrealized gain

     —          21,113        21,113   
     Amounts per
Financial
Statements
    Differences     Amounts per
Form 5500
 
     (In thousands)  

Net investment gain from participation in Lockheed Martin Corporation Defined Contribution

   $ 2,452,359      $ (5,551   $ 2,446,808   

Administrative expenses

     (29,227     26,981        (2,246

Interest income on notes receivable from participants

     21,430        (21,430     —     

 

4. Income Tax Status

The Internal Revenue Service (IRS) has determined and informed the Corporation by letter dated July 20, 2011, that the Plan and related trust are designed in accordance with applicable sections of the IRC. The Plan has been amended since receiving the determination letter. However, the Plan Administrator and the Plan’s counsel believe that the Plan is designed and is currently being operated in compliance with the applicable provisions of the IRC. The Plan was submitted for an updated IRS determination letter on January 23, 2013.

GAAP requires plan management to evaluate uncertain tax positions taken by the Plan. The financial statement effects of a tax position are recognized when the position is more likely than not, based on the technical merits, to be sustained upon examination by the IRS. The Plan Administrator has analyzed the tax positions taken by the Plan, and has concluded that as of December 31, 2012, there are no uncertain positions taken or expected to be taken. The Plan has recognized no interest or penalties related to uncertain tax positions. The Plan is subject to routine audits by taxing jurisdictions; however, there are currently no audits for any tax periods in progress. The Plan Administrator believes it is no longer subject to income tax examinations for years prior to 2005.

 

5. Legal Proceeding

On September 11, 2006, the Corporation and Lockheed Martin Investment Management Company (LMIMCo), a wholly-owned subsidiary of the Corporation, were named as defendants in a lawsuit filed in the U.S. District Court for the Southern District of Illinois, seeking to represent a putative class of participants and beneficiaries in the Plan. Plaintiffs have alleged that the Corporation or LMIMCo caused the Plan to pay certain expenses that were higher than reasonable and breached fiduciary duties under ERISA by offering certain allegedly imprudent investment options and providing inadequate disclosures to the Plan’s participants. On March 31, 2009, the Court dismissed a number of plaintiffs’ claims, leaving three claims for trial: plaintiffs’ claims involving the company stock funds, the Stable Value Fund, and overall administrative fees. On September 24, 2012, following plaintiffs’ amended motion for class certification on these remaining claims, the Court denied class certification of the Stable Value Fund claims, granted class certification of the administrative fees claims, and partially granted class certification of the company stock funds claims. The U.S. Court of Appeals for the Seventh Circuit has granted plaintiffs’ petition seeking discretionary review of the class certification of the Stable Value Fund claim and a hearing was held on May 29, 2013. The complaint does not allege a specific calculation of damages, and the Corporation reasonably cannot estimate the possible loss, or range of loss, which could be incurred by the Corporation if plaintiffs were to prevail in their claims, but believe that the Corporation and LMIMCo have substantial defenses. The Corporation disputes the allegations and is defending against them. As a consequence of the Court’s dismissal of a number of plaintiffs’ claims and related decisions by the Court on class certification with respect to the remaining claims, the Corporation believes that the proceedings are no longer material to the Corporation or LMIMCo. Additionally, an adverse decision would not result in any loss to the Plan. Accordingly, the Plan Sponsor does not anticipate reporting on this matter in future periods.

 

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Table of Contents

Lockheed Martin Corporation Salaried Savings Plan

Notes to Financial Statements

 

6. Parties-in-Interest Transactions

The Plan makes certain investments through the Master Trust, which are considered to be party-in-interest transactions for which a statutory exemption from the prohibited transaction regulation exists. The Master Trust owes direct reimbursements of $1,200,000 to the Corporation for certain expenses incurred by the Corporation in providing services to the Plan.

In addition, notes receivable from participants are considered to be party-in-interest transactions for which a statutory exemption from the prohibited transaction regulation exists.

Certain funds are sponsored by Northern Trust Investments, a wholly-owned subsidiary of The Northern Trust Company. The Northern Trust Company is the trustee of the 401(h) Account. Therefore, investments in these funds are considered to be party-in-interest transactions for which a statutory exemption from the prohibited transaction regulation exists.

The Master Trust invests in common stock of the Corporation, the Plan Sponsor. The Master Trust held 48,627,663 and 51,897,215 shares of the Company’s common stock as of December 31, 2012 and 2011, respectively. Dividends earned by the Master Trust on the Company’s common stock were $209,902,000 for the year ended December 31, 2012.

The Master Trust invests in certain investments that are sponsored by State Street, the Trustee. These investments include the following: Government Short Term Fund, S&P 500 Indexed Equity Fund, Small Mid-Cap Indexed Equity Fund, and MSCI EAFE Indexed Equity Fund.

The 401(h) account invests in common stock of the ING Groep NV, the parent company of the recordkeeper. Therefore, investments in ING Groep NV common stock are considered to be party-in-interest transactions for which a statutory exemption from the prohibited transaction regulation exists.

 

7. Master Trust & 401(h) Account

General

The Plan’s interest in the Master Trust is stated at the fair value of the underlying net assets in the Master Trust. The assets, realized and unrealized gains and losses, and investment income of the Master Trust are allocated among the plans included therein based on the number of participant units outstanding in each fund and other investment options in which the plans invest daily. The Plan’s interest in the Master Trust’s net assets as of December 31, 2012 and 2011 was 90.22% and 90.15%, respectively.

The Master Trust invests in a Stable Value Fund that contains the following components: a managed separate account paired with a wrap contract to create a synthetic guaranteed investment contract (GIC), and a common/collective trust (CCT), the Invesco Institutional N.A., Inc. Group Trust Fund Retirement Savings (Invesco-CCT). In June 2012, the Stable Value Portfolio that resided in the portion of the Stable Value Fund managed by State Street Global Advisors (SSGA) for Employee Benefit Trusts (SSGA-CCT) contract was terminated and transferred to the Invesco-CCT. The Stable Value Fund investment components provide the Master Trust with a medium for collective investment and reinvestment in one or more bank, insurance company, or synthetic investment contracts that are considered fully benefit- responsive, as well as a significant investment in a Short-Term Investment Fund or a Government Short-Term Investment Fund.

A fully benefit-responsive investment contract provides a liquidity guarantee by a financially responsible third party, of principal and previously accrued interest for liquidations, transfers, loans or withdrawals initiated by plan participants exercising their rights to withdraw, borrow or transfer funds under the terms of the plan. Contract value is the relevant measurement attribute for that portion of net assets available for benefits of a defined contribution plan attributable to fully benefit-responsive investment contracts because contract value is the amount participants would receive if they were to initiate permitted transactions under the terms of the plan.

 

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Table of Contents

Lockheed Martin Corporation Salaried Savings Plan

Notes to Financial Statements

 

The following table summarizes the adjustments from fair value to contract value related to fully benefit-responsive investment contracts included in the Stable Value Fund:

 

     2012     2011  

Type

   Investment at
Fair Value
     Wrap Contract at
Fair Value
     Adjustment
to Contract
Value
    Investments at
Fair Value
     Wrap Contract at
Fair Value
     Adjustment to
Contract Value
 
     (In thousands)     (In thousands)  

SSGA - CCT

     N/A         N/A         N/A      $ 736,195       $ 82       $ (2,179

Invesco - CCT

   $ 4,227,585       $ 1,279       $ (97,353   $ 1,817,045       $ 455       $ (72,481

A synthetic GIC is a wrap contract paired with an underlying investment or investments, usually a portfolio of high-quality, intermediate term fixed income securities. The wrap contract in the managed separate accounts purchased from certain banks and insurance companies credits a stated interest rate for a specified period of time. Investment gains and losses are amortized over the expected duration through the calculation of the interest rate applicable to the Plan on a prospective basis. The synthetic GIC provides for a variable crediting rate and the issuer of the wrap contract provides assurance that future adjustments to the crediting rate cannot result in a crediting rate less than zero. The crediting rate is primarily based on the current yield-to-maturity of the covered investments, plus or minus amortization of the difference between the market value and contract value of the covered investments over the duration of the covered investments at the time of computation. The crediting rate is most impacted by the change in the annual effective yield-to-maturity of the underlying securities, but is also affected by the differential between the contract value and the market value of the covered investments. This difference is amortized over the duration of the covered investments. Depending on the change in duration from reset period to reset period, the magnitude of the impact to the crediting rate of the contract to market difference is heightened or lessened. The crediting rate can be adjusted periodically.

The Master Trust invests in a Short-Term Investment Fund or Government Short-Term Investment Fund, consisting of U.S. Treasury obligations and commercial paper, that is used as a temporary investment to hold contributions from the day the cash is transferred from the Corporation to the Trustee until the day the cash is invested in a particular fund. Occasionally, the fund may invest in unleveraged securities, which may be considered derivatives, for liquidity or asset allocation purposes. At December 31, 2012 and 2011, there were no material investments in derivatives. The related earnings from the Short-Term Investment Fund or Government Short-Term Investment Fund are used to pay certain expenses related to participant accounts.

In order to provide appropriate liquidity to meet ongoing daily cash outflow requirements for the Lockheed Martin stock funds and the other investment funds that are investment alternatives for the Plan that are beneficiaries of the Master Trust, the Master Trust may be able to receive advances from the Stable Value Fund or the Corporation. The Stable Value Fund may make an advance only after considering its own liquidity needs. Any investment fund that receives an advance will compensate the Stable Value Fund for income lost due to any such advance by paying interest on such advance calculated on a compounded daily basis based on an annual rate equal to the interest crediting rate to the Short Term Investment Fund or the Government Short-Term Investment Fund portion of the Stable Value Fund, as appropriate. The Lockheed Martin stock funds may borrow, without interest, up to $200,000,000 from the Corporation, as evidenced by a promissory note, which requires repayment within three business days after the advance. As of December 31, 2012 and 2011, there were no such advances payable to the Corporation.

Fair Value of Assets

The accounting standard for fair value measurements defines fair value, establishes a market-based framework or hierarchy for measuring fair value, and expands disclosures about fair value measurements. The standard is applicable whenever assets and liabilities are measured and included in the financial statements at fair value.

The fair value hierarchy established in the standard prioritizes the inputs used in valuation techniques into three levels as follows:

 

 

Level 1 – Observable inputs – quoted prices in active markets for identical assets and liabilities;

 

 

Level 2 – Observable inputs other than the quoted prices in active markets for identical assets and liabilities – includes quoted prices for similar instruments, quoted prices for identical or similar instruments in inactive markets, and amounts derived from valuation models where all significant inputs are observable in active markets; and

 

10


Table of Contents

Lockheed Martin Corporation Salaried Savings Plan

Notes to Financial Statements

 

 

Level 3 – Unobservable inputs – includes amounts derived from valuation models where one or more significant inputs are unobservable and require us to develop relevant assumptions.

The following table presents the fair value of the assets in the Master Trust by asset category and their level within the fair value hierarchy as of December 31, 2012 and their appreciation (depreciation) for the year ended December 31, 2012:

 

     Level 1      Level 2      Level 3      Total     Appreciation
(Depreciation)
 
     (In thousands)  

Cash and cash equivalents

   $ 801,678       $ —         $ —         $ 801,678      $ (188

Equity:

             

U.S. equity securities

     2,318,655         —           —           2,318,655        266,486   

U.S. equity securities - Lockheed Martin

     4,491,512         —           —           4,491,512        584,318   

International equity securities

     479,775         —           —           479,775        58,833   

Commingled equity funds

     2,537,140         8,632,264         —           11,169,404        1,343,668   

Fixed income:

             

Corporate debt securities

     —           95,215         —           95,215        5,151   

U.S. Government securities

     —           1,701,640         —           1,701,640        30,062   

Other fixed income securities

     6,763         3,156,228         —           3,162,991        4,201   

Alternative investments:

             

Wrap contract

     —           —           1,279         1,279        824   
  

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

Total Investment Assets at Fair Value

   $ 10,635,523       $ 13,585,347       $ 1,279       $ 24,222,149      $ 2,293,355   
  

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

Unsettled trades, net

              (33,312  

Adjustment from fair value to contract value for fully benefit-responsive investment contracts

              (97,353  
           

 

 

   

Total net assets

            $ 24,091,484     
           

 

 

   

Interest and dividend income earned by the Master Trust for the year ended December 31, 2012 was $454,183,000.

The following table presents the fair value of the assets in the Master Trust by asset category and their level within the fair value hierarchy as of December 31, 2011:

 

     Level 1      Level 2      Level 3      Total  
            (In thousands)  

Cash and cash equivalents

   $ 959,819       $ —         $ —         $ 959,819   

Equity:

           

U.S. equity securities

     2,373,144         —           —           2,373,144   

U.S. equity securities - Lockheed Martin

     4,201,589         —           —           4,201,589   

International equity securities

     283,363         454         —           283,817   

Commingled equity funds

     2,165,399         5,311,893         —           7,477,292   

Fixed income:

           

Corporate debt securities

     —           99,242         —           99,242   

U.S. Government securities

     —           1,875,380         —           1,875,380   

Other fixed income securities

     4,361         4,539,437         —           4,543,798   

Alternative investments:

           

Wrap contracts

     —           —           537         537   
  

 

 

    

 

 

    

 

 

    

 

 

 

Total Investment Assets at Fair Value

   $ 9,987,675       $ 11,826,406       $ 537       $ 21,814,618   
  

 

 

    

 

 

    

 

 

    

 

 

 

Unsettled trades, net

              (10,757

Adjustment from fair value to contract value for fully benefit-responsive investment contracts

              (74,660
           

 

 

 

Total net assets

            $ 21,729,201   
           

 

 

 

 

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Table of Contents

Lockheed Martin Corporation Salaried Savings Plan

Notes to Financial Statements

 

The fair value of the wrap contracts of $1,279,000 and $537,000 at December 31, 2012 and 2011, respectively, are considered Level 3 investments due to certain unobservable inputs as described below. The change in the fair value during 2012 was primarily due to unrealized gains.

The Master Trust recognizes transfers between the Levels 1, 2, and 3 fair value classifications as of the date of the change in circumstances that causes the transfer. During 2012, there were no transfers between Levels 1, 2, and 3.

401(h) Account

The assets in the 401(h) account are held outside the Master Trust in a separate trust. The following table presents the fair value of the assets in the 401(h) account by asset category and their level within the fair value hierarchy as of December 31, 2012 and their appreciation for the year ended December 31, 2012:

 

     Level 1      Level 2      Level 3      Total      Appreciation  
     (In thousands)  

Cash and cash equivalents

   $ 20,883       $ —         $ —         $ 20,883       $ 76   

Equity:

              

U.S. equity securities

     53,127         —           —           53,127         7,876   

International equity securities

     36,277         18         —           36,295         5,638   

Commingled equity funds

     112,073         —           —           112,073         4,350   

Fixed income:

              

U.S. Government securities

     —           114,776         —           114,776         2,825   

Other fixed income securities

     —           322         2,162         2,484         242   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total assets

   $ 222,360       $ 115,116       $ 2,162       $ 339,638       $ 21,007   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Receivables, net

              1,107      
           

 

 

    

Total net assets

            $ 340,745      
           

 

 

    

The following table presents the fair value of the assets in the 401(h) account by asset category and their level within the fair value hierarchy as of December 31, 2011:

 

     Level 1      Level 2      Level 3      Total  
            (In thousands)  

Cash and cash equivalents

   $ 13,496       $ —         $ —         $ 13,496   

Equity:

           

U.S. equity securities

     46,588         —           —           46,588   

International equity securities

     45,568         —           —           45,568   

Commingled equity funds

     86,178         899         —           87,077   

Fixed income:

           

Corporate debt securities

     —           59         —           59   

U.S. Government securities

     —           113,876         —           113,876   

Other fixed income securities

     —           —           1,209         1,209   

Alternative investments:

           

Commodities

     4,349         —           —           4,349   
  

 

 

    

 

 

    

 

 

    

 

 

 

Total assets

   $ 196,179       $ 114,834       $ 1,209       $ 312,222   
  

 

 

    

 

 

    

 

 

    

 

 

 

Receivables, net

              1,685   
           

 

 

 

Total net assets

            $ 313,907   
           

 

 

 

 

12


Table of Contents

Lockheed Martin Corporation Salaried Savings Plan

Notes to Financial Statements

 

The following table presents the changes during 2012 in the fair value of 401(h) account assets categorized as Level 3 in the preceding tables:

 

     Balance,
beginning
of year
     Realized gains      Unrealized
gains
     Purchases      Sales     Settlements     Balance, end
of year
 
     (In thousands)  

Other fixed income securities

   $ 1,209       $ 2       $ 159       $ 2,321       $ (1,228   $ (301   $ 2,162   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

   

 

 

   

 

 

 

The 401(h) account recognizes transfers between the Levels 1, 2, and 3 fair value classifications as of the date of the change in circumstances that causes the transfer. During 2012, there were no transfers between Levels 1, 2 and 3.

Valuation Techniques

Cash equivalents are mostly comprised of short-term money-market instruments and are valued at cost, which approximates fair value.

U.S. equity securities and international equity securities categorized as Level 1 are traded on active national and international exchanges and are valued at their closing prices on the last trading day of the year. International equity securities categorized as Level 2 are not traded on an active exchange, or if the closing price is not available, the trustee obtains corroborated, indicative quotes from a pricing vendor, broker, or investment manager.

Commingled equity funds are public investment vehicles valued using the Net Asset Value (NAV) provided by the fund manager. The NAV is the total value of the fund divided by the number of shares outstanding. Commingled equity funds are categorized as Level 1 if traded at their NAV on a nationally recognized securities exchange or categorized as Level 2 if the NAV is corroborated by observable market data (e.g., purchases or sales activity).

Other fixed income securities categorized as Level 1 are traded on active national and international exchanges and are valued at their closing prices on the last trading day of the year. Corporate debt securities, U.S. Government securities, and other fixed income securities categorized as Level 2 are valued by the trustee using pricing models that use verifiable observable market data (e.g., interest rates and yield curves observable at commonly quoted intervals), bids provided by brokers or dealers, or quoted prices of securities with similar characteristics. Other fixed income securities are categorized at Level 3 when valuations using observable inputs are unavailable. The trustee obtains pricing based on indicative quotes or bid evaluations from vendors, brokers or the investment manager.

Other fixed income securities in the Master Trust categorized as Level 2 also include the Stable Value Fund. Securities within the Stable Value Fund for which market quotations are readily available are valued in accordance with such market quotations. If market quotations are not available with respect to any such security, the fair value of the security is determined in good faith by the issuer of the Stable Value Fund.

Individual assets of the synthetic GIC categorized as Level 2 are valued at representative quoted market prices. The fair value of the wrap contracts associated with the synthetic GIC is categorized as Level 3 and is determined using the income approach methodology. Each wrap contract is valued at fair value by discounting the related cash flows based on current yields of similar instruments with comparable durations considering the credit-worthiness of the issuer.

Commodities are traded on an active commodity exchange and are valued at their closing prices on the last trading day of the year.

The methods described above may produce a fair value calculation that may not be indicative of net realizable value or reflective of future fair values. Furthermore, while management believes its valuation methods are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different fair value measurement at the reporting date.

 

13


Table of Contents

Lockheed Martin Corporation Salaried Savings Plan

Employer Identification Number 52-1893632, Plan Number 017

Schedule H, Line 4i – Schedule of Assets (Held at End of Year)***

December 31, 2012

 

         (c)
Description of
Investment, Including
Maturity Date, Rate of
            (e)  
    (b)    Interest, Collateral, Par,      (d)      Current  

(a)

 

Identity of Issue, Borrower, Lessor, or Similar Party

   or Maturity Value      Cost      Value  
                (In thousands)  
 

401(h) Trust **

        
 

U.S. Government Securities

        
 

CMO Small Business Admin Gtd Dev Partn Ctf 5.49% 02/01/27

     345,276       $ 345       $ 397   
 

Small Business Admin Gtd Dev Partn CD 5.24% Due 1-23/02-1-10

     204,255         204         228   
 

Small Business Admin Gtd Dev Partn Ctf 5.31% Due 08-01-2022

     132,841         137         146   
 

Small Business Admin Gtd Dev Partn Ctf 5.1% Due 09-01-2023

     152,509         153         169   
 

Small Business Admin Gtd Dev Partn Ctf 5.35% Due 02-01-2026

     294,403         294         336   
 

U.S. Treasury Inflation Indexed Bonds 0.75% Due 02-15-2042

     755,000         787         846   
 

U.S. Treasury Bonds 5.081% Due 04-15-2028

     1,565,000         2,788         3,548   
 

U.S. Treasury Bonds 2.75% Due 08-15-2042

     1,775,000         1,772         1,714   
 

U.S. Treasury Inflation Indexed Notes 1.375% Due 01-15-2020

     2,425,000         2,553         3,075   
 

U.S. Treasury Bonds 2.125% Due 02-15-2041

     1,705,000         2,331         2,659   
 

U.S. Treasury Bonds Dated 8-15-2010 3.875% Due 08-15-2040

     27,025,000         28,437         32,481   
 

U.S. Treasury Bonds 4.25% Due 11-15-2040

     4,735,000         4,662         6,046   
 

U.S. Treasury Bonds Dated 02-15-1996 6% Due 02-15-2026

     2,875,000         3,828         4,160   
 

U.S. Treasury Bonds Dated 02-15-2000 6.25% Due 05-15-2030

     2,460,000         3,330         3,804   
 

U.S. Treasury Bonds Dated 02-15-2001 5.375% 02-15-2031

     2,905,000         3,765         4,147   
 

U.S. Treasury Bonds Dated 08-15-1993 6.25% Due 08-15-2023

     2,540,000         3,337         3,642   
 

U.S. Treasury Bonds Dated 08-15-1997 6.375% Due 08-15-2027

     2,640,000         3,673         4,000   
 

U.S. Treasury Bonds Dated 11-15-2012 2.75% Due 11-15-2042

     3,700,000         3,655         3,565   
 

U.S. Treasury Inflation Indexed Bonds 1.75% Due 01-15-2028

     1,495,000         1,588         2,137   
 

U.S. Treasury Inflation Indexed Notes 1.25% Due 07-15-2020

     2,935,000         3,022         3,693   
 

U.S. Treasury Bonds 4.375% Due 05-15-2040

     4,975,000         5,371         6,476   
 

U.S. Treasury Bonds 4.75% Due 02-15-2041

     2,340,000         2,960         3,226   
 

U.S. Treasury Bonds Dated 05-16-2011 4.375% Due 05-15-2041

     6,865,000         8,271         8,944   
 

U.S. Treasury Inflation Indexed Bonds 2.00% Due 01-15-2026

     1,015,000         1,219         1,551   
 

U.S. Treasury Inflation Indexed Bonds 2.375% Due 01-15-2025

     1,055,000         1,398         1,746   
 

U.S. Treasury Notes Dated 8/15/2011 2.125% Due 08-15-2021

     720,000         741         757   
 

U.S. Treasury Inflation Indexed Notes 2.00% Due 01-15-2016

     910,000         1,086         1,176   
 

U.S. Treasury Inflation Indexed Notes 0.125% Due 01-15-2022

     1,115,000         1,187         1,237   
 

U.S. Treasury Inflation Indexed Notes 2.00% Due 07-15-2014

     1,460,000         1,813         1,891   
 

U.S. Treasury Inflation Indexed Notes Dated 07-15-2011 Due 07-15-2021

     1,020,000         1,130         1,190   
 

U.S. Treasury Inflation Indexed Notes 04-15-2016

     1,895,000         1,928         2,091   
 

U.S. Treasury Inflation Indexed Bonds 2.625% Due 07-15-2017

     2,765,000         3,325         3,698   
       

 

 

    

 

 

 
 

Total U.S. Government Securities

      $ 101,090       $ 114,776   

 

14


Table of Contents

Lockheed Martin Corporation Salaried Savings Plan

Employer Identification Number 52-1893632, Plan Number 017

Schedule H, Line 4i – Schedule of Assets (Held at End of Year)***

December 31, 2012

 

         (c)
Description of
Investment, Including
Maturity Date, Rate of
            (e)  
    (b)    Interest, Collateral, Par,      (d)      Current  

(a)

 

Identity of Issue, Borrower, Lessor, or Similar Party

   or Maturity Value      Cost      Value  
                (In thousands)  
 

Common Stock

        
 

1st Quantum Minerals LTD

     1,286       $ 29       $ 28   
 

Abb LTD

     7,726         147         158   
 

Abbott Laboratories

     15,900         804         1,041   
 

Accenture PLC

     4,400         211         293   
 

Adecco SA

     668         36         35   
 

Adidas AG

     589         40         52   
 

Aeon Co. LTD

     2,900         35         33   
 

AFLAC Inc

     2,000         91         106   
 

AGL Energy LTD

     3,989         60         64   
 

Agnico Eagle Mines

     1,125         53         59   
 

Agrium Inc

     2,161         165         215   
 

AIA Group LTD

     60,400         207         236   
 

Air Products & Chemicals Inc

     118         11         10   
 

Air Water Inc

     946         11         12   
 

Akzo Nobel NV

     779         39         51   
 

Alimentation Couch

     1,679         47         82   
 

Allegheny Technologies Inc

     3,383         108         103   
 

Allergan Inc

     6,800         437         624   
 

Allianz SE

     925         112         128   
 

Alstom

     1,309         64         52   
 

Amer Movil SAB

     286         7         7   
 

American Express Co

     4,600         205         264   
 

American International Group Inc

     2,700         95         95   
 

Ameriprise Financial Inc

     1,500         95         94   
 

Amerisourcebergen Corp

     9,900         390         427   
 

Anadarko Petro Corp

     547         42         41   
 

Analog Devices Inc

     11,744         466         494   
 

Andritz AG

     2,060         79         132   
 

Anglo American

     1,221         40         38   
 

Anglogold Ashanti LTD

     299         11         9   

 

15


Table of Contents

Lockheed Martin Corporation Salaried Savings Plan

Employer Identification Number 52-1893632, Plan Number 017

Schedule H, Line 4i – Schedule of Assets (Held at End of Year)***

December 31, 2012

 

         (c)
Description of
Investment, Including
Maturity Date, Rate of
            (e)  
    (b)    Interest, Collateral, Par,      (d)      Current  

(a)

 

Identity of Issue, Borrower, Lessor, or Similar Party

   or Maturity Value      Cost      Value  
                (In thousands)  
 

Common Stock (continued)

        
 

Anheuser Busch InBev

     7,879       $ 449       $ 686   
 

Antofagasta

     1,073         22         23   
 

Apache Corp

     4,100         389         322   
 

Aperam SA

     1,568         24         24   
 

Apple Inc

     3,954         1,421         2,108   
 

Arcelormittal

     2,319         35         40   
 

Asahi Group Holdings LTD

     2,900         61         62   
 

Asahi Kasei Corp

     8,242         52         48   
 

Asciano LTD

     6,282         31         30   
 

ASML Holding NV

     1,952         93         124   
 

Astellas Pharma

     3,100         124         139   
 

Astral Media Inc

     1,360         47         63   
 

Astrazeneca

     6,096         293         288   
 

AT&T Inc

     8,700         229         293   
 

Aurico Gold Inc

     5,496         36         45   
 

Australia & New Zealand Bank Group

     6,938         166         180   
 

Autogrill SPA

     6,216         83         71   
 

Aviva

     7,091         45         43   
 

Azbil Corp

     1,700         39         34   
 

BAE Systems

     10,683         59         59   
 

Balfour Beatty

     4,704         16         21   
 

Banco Bradesco

     8,368         141         145   
 

Banco Santander

     15,278         106         123   
 

Bank Of China

     34,000         13         15   
 

Bank of New York Mellon Corp

     6,300         166         162   
 

Bank of Yokohama

     10,000         47         46   
 

Barclays

     14,936         60         64   
 

Barrick Gold Corp

     3,633         169         127   
 

BASF

     1,197         94         112   
 

Bauer AG

     1,303         60         33   

 

16


Table of Contents

Lockheed Martin Corporation Salaried Savings Plan

Employer Identification Number 52-1893632, Plan Number 017

Schedule H, Line 4i – Schedule of Assets (Held at End of Year)***

December 31, 2012

 

         (c)
Description of
Investment, Including
Maturity Date, Rate of
            (e)  
    (b)    Interest, Collateral, Par,      (d)      Current  

(a)

 

Identity of Issue, Borrower, Lessor, or Similar Party

   or Maturity Value      Cost      Value  
                (In thousands)  
 

Common Stock (continued)

        
 

Baxter International Inc

     4,178       $ 176       $ 279   
 

Bayer AG

     3,890         289         369   
 

BBVA

     11,433         89         105   
 

BCE Inc

     1,217         49         52   
 

Bed Bath & Beyond Inc

     4,700         258         263   
 

Belgacom SA

     1,246         45         36   
 

Bell Aliant Inc

     2,855         81         75   
 

Berkshire Hathaway Inc

     8,495         665         762   
 

BG Group PLC

     22,351         497         368   
 

BHP Billiton LTD

     5,646         218         217   
 

BHP Billiton PLC

     4,399         132         152   
 

Bilfinger Berger

     1,047         76         101   
 

Biogen Idec Inc

     1,300         184         191   
 

BK Mandiri

     209,000         159         176   
 

Blackrock Inc

     862         150         178   
 

Bluescope Steel

     5,516         16         20   
 

BNP Paribas

     3,232         136         181   
 

Bouygues

     910         40         27   
 

BP PLC

     53,103         383         367   
 

Brambles LTD

     5,844         42         46   
 

Bridgestone Corp

     2,700         64         69   
 

British American Tobacco

     3,514         181         178   
 

British Sky Broadcasting Group

     4,512         47         56   
 

BT Group

     30,640         78         115   
 

Cairn Energy PLC

     990         12         4   
 

Cameron International Corp

     9,465         421         534   
 

Canadian Imperial Bank

     2,667         203         214   
 

Canadian Natural Resource

     3,543         135         102   
 

Canadian Pacific Railway LTD

     6,571         619         668   
 

Canon Inc

     6,000         278         232   

 

17


Table of Contents

Lockheed Martin Corporation Salaried Savings Plan

Employer Identification Number 52-1893632, Plan Number 017

Schedule H, Line 4i – Schedule of Assets (Held at End of Year)***

December 31, 2012

 

         (c)
Description of
Investment, Including
Maturity Date, Rate of
            (e)  
    (b)    Interest, Collateral, Par,      (d)      Current  

(a)

 

Identity of Issue, Borrower, Lessor, or Similar Party

   or Maturity Value      Cost      Value  
                (In thousands)  
 

Common Stock (continued)

        
 

Casino Guich-Perrachon

     511       $ 48       $ 49   
 

Celanese Corp

     606         23         27   
 

Centerra Gold Inc

     1,102         10         10   
 

Central Japan Railway

     500         40         40   
 

Centrica

     8,875         49         48   
 

Cheung Kong (Holdings)

     5,000         61         77   
 

Chevron Corp

     6,163         458         666   
 

China Life Insurance Co. LTD

     184         8         9   
 

China Mobile LTD

     3,239         160         190   
 

China ShenHua Energy

     7,638         30         33   
 

Chubb Corp

     3,800         208         286   
 

Chubu Electric Power Co Inc

     3,600         81         48   
 

Chugai Pharmacy Co. LTD

     1,800         31         34   
 

Chunghwa Telecom Co. LTD

     358         11         12   
 

Cie Financie Richemont

     5,492         284         428   
 

Cisco Systems Inc

     19,400         353         381   
 

Citigroup Inc

     8,993         334         356   
 

Cobalt International Energy Inc

     441         14         11   
 

Coca Cola Co

     40,155         1,276         1,456   
 

Coca-Cola Amatil LTD

     3,827         48         53   
 

Colgate-Palmolive Co

     10,463         908         1,094   
 

Coloplast

     535         18         26   
 

Comerica Inc

     5,900         183         179   
 

Commonwealth Bank Of Australia

     2,798         139         181   
 

Compass Group

     7,198         71         85   
 

Concho Resources Inc

     143         13         12   
 

Consol Energy Inc

     363         16         12   
 

Costco Wholesale Corp New

     6,600         441         652   
 

Covidien PLC

     12,690         613         733   
 

Credit Suisse AG

     13,076         423         318   

 

18


Table of Contents

Lockheed Martin Corporation Salaried Savings Plan

Employer Identification Number 52-1893632, Plan Number 017

Schedule H, Line 4i – Schedule of Assets (Held at End of Year)***

December 31, 2012

 

         (c)
Description of
Investment, Including
Maturity Date, Rate of
            (e)  
    (b)    Interest, Collateral, Par,      (d)      Current  

(a)

 

Identity of Issue, Borrower, Lessor, or Similar Party

   or Maturity Value      Cost      Value  
                (In thousands)  
 

Common Stock (continued)

        
 

Crown Holdings Inc

     863       $ 31       $ 32   
 

Crown LTD

     5,682         50         63   
 

CVS Caremark Corp

     8,400         269         406   
 

Daiichi Sankyo

     4,200         80         64   
 

Daimler AG

     573         30         31   
 

Danone SA

     2,623         167         173   
 

DBS Group Holdings

     9,426         107         115   
 

Delhaize Group

     828         61         33   
 

Denison Mines Corp

     3,538         5         4   
 

Denso Corp

     1,600         49         55   
 

Deutsche Bank AG

     833         36         36   
 

Deutsche Telekom

     5,751         72         65   
 

Devon Energy Corp

     6,700         456         349   
 

Diageo PLC

     14,197         310         412   
 

DNB ASA

     4,989         51         63   
 

Don Quijote

     3,800         145         139   
 

Doutor Nichires Ho

     2,900         37         38   
 

DR Horton Inc

     6,942         136         137   
 

Dril-Quip Inc

     201         15         15   
 

Du Pont E I De Nemours & Co

     855         39         38   
 

E. On AG

     3,200         69         59   
 

East Japan Railway Co

     1,800         107         116   
 

Ebay Inc

     8,100         306         413   
 

Ecolab Inc

     2,520         167         181   
 

Eldorado Gold Corp

     5,006         82         64   
 

Eli Lilly & Co

     2,596         95         128   
 

EMC Corp

     6,700         175         170   
 

Emerson Electric Co

     4,800         230         254   
 

Enel Spa

     10,326         43         43   

 

19


Table of Contents

Lockheed Martin Corporation Salaried Savings Plan

Employer Identification Number 52-1893632, Plan Number 017

Schedule H, Line 4i – Schedule of Assets (Held at End of Year)***

December 31, 2012

 

         (c)
Description of
Investment, Including
Maturity Date, Rate of
            (e)  
    (b)    Interest, Collateral, Par,      (d)      Current  

(a)

 

Identity of Issue, Borrower, Lessor, or Similar Party

   or Maturity Value      Cost      Value  
                (In thousands)  
 

Common Stock (continued)

        
 

Eni Spa

     1,801       $ 40       $ 44   
 

Ensco PLC

     115         6         7   
 

EOG Resources Inc

     207         21         25   
 

Ericsson

     7,731         85         77   
 

Eros International

     10,600         37         40   
 

Essilor International SA

     721         65         72   
 

Eutelsat Communications SA

     829         31         27   
 

Evs Broadcast Equipment

     1,244         78         73   
 

Express Scripts Holding Co

     10,413         589         562   
 

Exxon Mobil Corp

     13,073         974         1,131   
 

Familymart Co

     1,600         58         66   
 

Ford Motor Co

     16,000         182         207   
 

Fortescue Metals Group LTD

     6,027         24         29   
 

France Telecom

     10,390         215         114   
 

Freeport-Mcmoran Copper & Gold Inc

     3,700         137         127   
 

Fresenius SE & KGAA

     1,620         145         186   
 

Fuji Oil Co LTD

     2,300         32         33   
 

Gazprom Sponsor

     1,612         18         15   
 

GDF SUEZ

     5,122         147         105   
 

Geberit AG

     77         16         17   
 

General Dynamics Corp

     4,100         279         284   
 

General Electric Co

     46,500         876         976   
 

Gerresheimer AG

     1,927         76         102   
 

Givaudan AG

     40         30         42   
 

Glaxosmithkline

     9,449         201         205   
 

Goldcorp Inc

     3,650         174         134   
 

Goldman Sachs Group Inc

     1,700         283         217   
 

Google Inc

     1,231         798         873   
 

HCC Insurance Holdings Inc

     4,300         120         160   
 

Heidelbergcement AG

     487         25         29   

 

20


Table of Contents

Lockheed Martin Corporation Salaried Savings Plan

Employer Identification Number 52-1893632, Plan Number 017

Schedule H, Line 4i – Schedule of Assets (Held at End of Year)***

December 31, 2012

 

         (c)
Description of
Investment, Including
Maturity Date, Rate of
            (e)  
    (b)    Interest, Collateral, Par,      (d)      Current  

(a)

 

Identity of Issue, Borrower, Lessor, or Similar Party

   or Maturity Value      Cost      Value  
                (In thousands)  
 

Common Stock (continued)

        
 

Heineken NV

     1,288       $ 65       $ 86   
 

Hennes & Mauritz AB

     3,830         126         132   
 

Hollyfrontier Corp

     687         24         32   
 

Home Depot Inc

     9,411         305         582   
 

Hon Hai Precision

     1,510         10         9   
 

Honda Motor Co

     800         30         29   
 

Honeywell International Inc

     7,249         397         460   
 

Hoya Corp

     2,700         67         53   
 

HSBC Holdings

     29,734         284         313   
 

Iamgold Corp

     9,117         127         104   
 

Iberdrola SA

     4,234         27         23   
 

Imperial Tobacco

     3,235         128         125   
 

Indo Tambangray

     4,536         21         20   
 

Industrial & Commercial Bank China

     192,000         128         136   
 

Infineon Technologies

     14,590         112         118   

*

 

ING Groep NV

     6,155         54         57   
 

Inmarsat

     3,614         25         34   
 

Inmet Mining Corp

     355         20         26   
 

Inpex Corporation

     11         72         58   
 

Intesa Sanpaolo

     28,275         47         48   
 

Investor AB

     2,712         55         71   
 

IT Holdings Corp

     3,200         35         39   
 

Itochu Corp

     3,400         31         36   
 

Itoham Foods Inc

     10,000         32         44   
 

ITV

     72,000         107         123   
 

Jardine Matheson Holdings

     2,000         109         124   
 

JB Hi-Fi

     8,100         226         229   
 

JCDecaux SA

     771         22         18   
 

JFE Holdings Inc

     1,770         25         33   
 

Johnson & Johnson

     7,322         442         513   

 

21


Table of Contents

Lockheed Martin Corporation Salaried Savings Plan

Employer Identification Number 52-1893632, Plan Number 017

Schedule H, Line 4i – Schedule of Assets (Held at End of Year)***

December 31, 2012

 

         (c)
Description of
Investment, Including
Maturity Date, Rate of
            (e)  
    (b)    Interest, Collateral, Par,      (d)      Current  

(a)

 

Identity of Issue, Borrower, Lessor, or Similar Party

   or Maturity Value      Cost      Value  
                (In thousands)  
 

Common Stock (continued)

        
 

Johnson Controls Inc

     3,146       $ 88       $ 97   
 

JP Morgan Chase & Co

     15,400         625         677   
 

JSC MMC Norilsk Nickel

     810         14         15   
 

Julius Baer Gruppe

     1,256         46         44   
 

Juniper Networks Inc

     22,700         418         447   
 

Kaiser Alum Corp

     638         33         39   
 

Kansai Electric Power Co

     3,900         85         41   
 

Kao Corp

     2,400         62         62   
 

Kazakhmys

     1,522         16         19   
 

KBC Groep

     4,600         137         159   
 

Kddi Corp

     1,600         106         113   
 

Keppel Corp

     23,900         167         215   
 

Keyence Corp

     518         133         143   
 

Kingfisher

     7,672         30         35   
 

Kinross Gold Corp

     16,069         186         156   
 

Kirin Holdings Co

     8,000         106         94   
 

Kissei Pharm Co

     2,100         41         39   
 

Kodiak Oil & Gas Corp

     3,884         37         34   
 

Komatsu

     2,900         63         73   
 

Koninklijke Ahold

     2,077         28         28   
 

Koninklijke DSM NV

     909         45         55   
 

Koninklijke KPN

     8,495         119         42   
 

Korea Electric Power Corp

     737         8         10   
 

Kraft Foods Inc

     4,356         155         198   
 

Kubota Corp

     21,000         191         239   
 

Kyocera Corp

     600         51         54   
 

L-3 Communications Holding Corp

     1,800         134         138   
 

Lagardere SCA

     1,994         82         66   
 

Lanxess AG

     446         33         39   
 

Las Vegas Sands Corp

     3,600         193         166   

 

22


Table of Contents

Lockheed Martin Corporation Salaried Savings Plan

Employer Identification Number 52-1893632, Plan Number 017

Schedule H, Line 4i – Schedule of Assets (Held at End of Year)***

December 31, 2012

 

         (c)
Description of
Investment, Including
Maturity Date, Rate of
            (e)  
    (b)    Interest, Collateral, Par,      (d)      Current  

(a)

 

Identity of Issue, Borrower, Lessor, or Similar Party

   or Maturity Value      Cost      Value  
                (In thousands)  
 

Common Stock (continued)

        
 

Lawson Inc

     1,000       $ 49       $ 68   
 

Legrand SA

     2,800         114         118   
 

Linde AG

     156         23         27   
 

Lloyds Banking Group

     172,000         114         134   
 

L’Oreal

     892         105         123   
 

LVMH Moet Hennessy Louis Vuitton

     970         158         178   
 

Lyondellbasell Industries NV

     311         17         18   
 

Makita Corp

     5,500         195         253   
 

Man Group

     10,237         40         14   
 

Marathon Oil Corp

     1,485         42         46   
 

Marathon Petroleum Corp

     4,870         197         307   
 

Markel Corp Holding Co

     833         346         361   
 

Maruwa Co LTD

     900         26         30   
 

McDonalds Corp

     5,300         344         468   
 

Mead Westvaco Corp

     1,116         31         36   
 

Merck & Co Inc New

     8,300         295         340   
 

Merck KGAA

     160         14         21   
 

Metro AG

     726         21         20   
 

Michelin (CGDE)

     3,228         239         305   
 

Microsoft Corp

     23,575         638         630   
 

Mitsubishi Corp

     3,900         92         74   
 

Mitsubishi Electric CP

     7,000         65         59   
 

Mitsubishi UFJ Financial

     44,199         201         236   
 

Mitsui & Co LTD

     7,800         114         116   
 

Mitusbishi Tanabe

     3,000         44         39   
 

Mizuho Financial Group

     98,900         157         180   
 

Mondelez International Inc

     45,347         1,035         1,155   
 

Monsanto Co New

     8,513         591         806   
 

Mosaic Co

     387         22         22   
 

MTN Group LTD

     874         17         18   

 

23


Table of Contents

Lockheed Martin Corporation Salaried Savings Plan

Employer Identification Number 52-1893632, Plan Number 017

Schedule H, Line 4i – Schedule of Assets (Held at End of Year)***

December 31, 2012

 

         (c)
Description of
Investment, Including
Maturity Date, Rate of
            (e)  
    (b)    Interest, Collateral, Par,      (d)      Current  

(a)

 

Identity of Issue, Borrower, Lessor, or Similar Party

   or Maturity Value      Cost      Value  
                (In thousands)  
 

Common Stock (continued)

        
 

National Australia Bank

     3,498       $ 86       $ 91   
 

National Oilwell Varco

     1,924         150         132   
 

Neopost

     303         26         16   
 

Nestle SA

     7,556         431         492   
 

Newcrest Mining LTD

     4,125         127         95   
 

Newmont Mining Corp New

     1,700         91         79   
 

News Corp

     4,000         82         102   
 

Nexen Inc

     1,122         26         30   
 

Nextera Energy Inc

     5,200         287         360   
 

Nidec Corporation

     800         81         46   
 

Nike Inc

     15,038         585         776   
 

Nippon Steel Corp

     15,514         39         38   
 

Nippon Telegraph & Telephone Corp

     4,500         213         189   
 

Nissan Motor Co LTD

     4,800         42         45   
 

Noble Energy Inc

     243         24         25   
 

Nokia OYJ

     8,191         80         32   
 

Nordea Bank AB

     11,620         117         111   
 

Nordstrom Inc

     2,500         94         134   
 

Norfolk Southern Corp

     3,800         232         235   
 

Norsk Hydro ASA

     4,420         22         22   
 

Novartis AG

     10,051         599         631   
 

Novo-Nordisk

     528         59         86   
 

NTT Docomo Inc

     111         189         159   
 

NTT Urban Development Corp

     29         20         28   
 

O Reilly Automotive Inc

     5,541         467         495   
 

Oasis Pete Inc

     469         14         15   
 

Occidental Petroleum Corp

     17,147         1,342         1,314   
 

Oceaneering International Inc

     502         25         27   
 

OMV AG

     222         8         8   
 

Ophir Energy PLC

     1,938         17         16   

 

24


Table of Contents

Lockheed Martin Corporation Salaried Savings Plan

Employer Identification Number 52-1893632, Plan Number 017

Schedule H, Line 4i – Schedule of Assets (Held at End of Year)***

December 31, 2012

 

         (c)
Description of
Investment, Including
Maturity Date, Rate of
            (e)  
    (b)    Interest, Collateral, Par,      (d)      Current  

(a)

 

Identity of Issue, Borrower, Lessor, or Similar Party

   or Maturity Value      Cost      Value  
                (In thousands)  
 

Common Stock (continued)

        
 

Oracle Corp

     53,891       $ 1,469       $ 1,796   
 

Osaka Gas Co LTD

     18,000         74         65   
 

Overseas Union Enterprise

     54,000         136         123   
 

Packaging Corp of America

     1,504         45         58   
 

Pan American Silver Corp

     1,776         36         33   
 

Panasonic Corp

     4,500         63         27   
 

Parker-Hannifin Corp

     1,700         138         145   
 

Partners Group Holding

     116         21         27   
 

Pearson

     2,424         38         47   
 

Pepsico Inc

     16,606         1,087         1,136   
 

Pernod Ricard

     1,118         115         129   
 

Petroleo Brasileiro SA Petrobras

     2,800         95         55   
 

Petrologistics LP

     1,074         15         15   
 

Petsmart Inc

     1,400         59         96   
 

Pfizer Inc

     14,000         255         351   
 

Philip Morris International

     11,100         888         928   
 

Philips Eleconics NV (Koninhlijke)

     5,387         124         141   
 

Phillips 66

     464         23         25   
 

Pioneer Natural Resources Co

     208         21         22   
 

Potash Corporation of Saskatchewan Inc

     3,700         177         151   
 

PPG Industries Inc

     126         11         17   
 

Prada SPA

     17,600         101         168   
 

Praxair Inc

     3,738         309         409   
 

Proassurance Corp

     2,000         87         84   
 

Procter & Gamble

     22,165         1,356         1,505   
 

Prudential PLC

     22,976         248         323   
 

Prudential Financial Inc

     4,600         255         245   
 

QBE Insurance Group LTD

     2,527         41         29   
 

Qualcomm Inc

     25,206         1,117         1,563   
 

Quebecor Inc

     2,194         75         85   

 

25


Table of Contents

Lockheed Martin Corporation Salaried Savings Plan

Employer Identification Number 52-1893632, Plan Number 017

Schedule H, Line 4i – Schedule of Assets (Held at End of Year)***

December 31, 2012

 

         (c)
Description of
Investment, Including
Maturity Date, Rate of
            (e)  
    (b)    Interest, Collateral, Par,      (d)      Current  

(a)

 

Identity of Issue, Borrower, Lessor, or Similar Party

   or Maturity Value      Cost      Value  
                (In thousands)  
 

Common Stock (continued)

        
 

Raffles Medical

     28,195       $ 50       $ 60   
 

Reckitt Benckiser Group PLC

     3,311         182         209   
 

Reed Elsevier

     7,618         64         79   
 

Repsol SA

     1,054         28         22   
 

Research In Motion

     3,476         109         41   
 

Rio Tinto

     9,492         548         549   
 

Roche Holdings AG Genusscheine

     1,916         314         385   
 

Rogers Commnications Inc

     2,046         78         93   
 

Ross Stores Inc

     3,200         113         173   
 

Round One Corp

     11,300         57         65   
 

Royal Bank of Canada

     3,150         172         189   
 

Royal Dutch Shell A

     4,980         167         171   
 

Royal Dutch Shell B

     7,526         258         266   
 

RPM International Inc

     1,036         28         30   
 

Sabmiller

     1,815         66         83   
 

Sainsbury PLC

     4,251         27         24   
 

Saipem

     5,559         251         215   
 

Sampo OYJ Ser‘A’

     1,526         43         49   
 

Samsung Electronic

     18         11         13   
 

Sanofi

     7,446         549         701   
 

Santen Pharm Co

     1,100         40         42   
 

SAP AG Ord

     19,648         127         187   
 

Schlumberger LTD

     19,057         1,308         1,320   
 

Schneider Electric

     906         61         65   
 

Schoeller Bleckman

     933         68         98   
 

Seadrill LTD

     4,847         164         177   
 

Semafo Inc

     4,192         17         14   
 

Semen Indonesia (Persero)

     84,500         108         139   
 

Sempra Energy Inc

     3,000         166         213   

 

26


Table of Contents

Lockheed Martin Corporation Salaried Savings Plan

Employer Identification Number 52-1893632, Plan Number 017

Schedule H, Line 4i – Schedule of Assets (Held at End of Year)***

December 31, 2012

 

         (c)
Description of
Investment, Including
Maturity Date, Rate of
            (e)  
    (b)    Interest, Collateral, Par,      (d)      Current  

(a)

 

Identity of Issue, Borrower, Lessor, or Similar Party

   or Maturity Value      Cost      Value  
                (In thousands)  
 

Common Stock (continued)

        
 

Seven & I Holdings Co LTD

     4,200       $ 114       $ 118   
 

SGS SA

     136         221         301   
 

Shin-Etsu Chemical

     2,130         115         129   
 

Shire PLC

     3,835         111         118   
 

Shoppers Drug Mart Inc

     792         34         34   
 

Siemens AG

     3,072         302         334   
 

Silver Standard Resources Inc

     734         11         11   
 

Silver Wheaton Corp

     105         4         4   
 

Singapore Telecommunications

     47,000         114         127   
 

Skand Enskilda Banken

     1,547         11         13   
 

Skanska AB

     2,570         47         42   
 

SMC Corp

     1,100         168         198   
 

Smith & Nephew

     8,540         79         94   
 

Sodexho Eur4

     632         46         53   
 

Softbank Corp

     5,500         177         200   
 

Sony Financial Holdings

     2,700         43         48   
 

Spectris

     3,648         66         122   
 

St. Jude Medical Inc

     7,748         292         280   
 

Standard Chartered

     14,279         356         365   
 

Stanley Black & Decker Inc

     2,000         134         148   
 

Starbucks Corp

     16,599         795         890   
 

Statoilhydro ASA

     5,450         125         136   
 

Stryker Corp

     7,600         418         417   
 

Sumitomo Corp

     5,300         68         67   
 

Sumitomo Mitsui Financial Group

     4,699         142         169   
 

Sumitomo Mitsui Trust Holdings Inc

     37,840         123         132   
 

Suncor Energy Inc

     4,349         159         143   
 

Suncorp Group LTD

     5,583         48         59   
 

Swedbank AG

     2,181         36         43   

 

27


Table of Contents

Lockheed Martin Corporation Salaried Savings Plan

Employer Identification Number 52-1893632, Plan Number 017

Schedule H, Line 4i – Schedule of Assets (Held at End of Year)***

December 31, 2012

 

         (c)
Description of
Investment, Including
Maturity Date, Rate of
            (e)  
    (b)    Interest, Collateral, Par,      (d)      Current  

(a)

 

Identity of Issue, Borrower, Lessor, or Similar Party

   or Maturity Value      Cost      Value  
                (In thousands)  
 

Common Stock (continued)

        
 

Swedish Match

     1,185       $ 38       $ 40   
 

Swisscom AG

     281         116         121   
 

Symantec Corp

     15,400         271         290   
 

Syngenta AG

     1,201         376         481   
 

Tabcorp Holdings LTD

     11,642         34         37   
 

Tahoe Resources Inc

     438         10         8   
 

Taiwan Semiconductor Mfg Co LTD

     849         13         15   
 

Takeda Pharmaceutical Co

     3,100         143         138   
 

Target Corp

     5,799         302         343   
 

Tatts Group LTD

     14,212         37         44   
 

Teck Resources LTD

     3,722         138         135   
 

Telefonica SA

     6,090         105         82   
 

Telenor ASA

     6,149         100         124   
 

Teliasonera AB

     18,456         147         125   
 

Telstra Corp LTD

     21,274         66         97   
 

Telus Corporation

     768         44         50   
 

Tesco

     32,707         201         179   
 

Teva Pharmaceutical Industries

     6,990         364         261   
 

Thermo Fisher Corp

     10,481         542         668   
 

Tiffany & Co

     1,300         82         75   
 

Time Warner Cable Inc

     2,100         149         204   
 

Timken Co

     1,200         46         57   
 

TJX Companies Inc

     5,800         115         246   
 

Tokio Marine Holdings Inc

     7,300         202         201   
 

Tokyo Gas Co LTD

     18,000         88         82   
 

Tokyo Steel Manufacturing Co LTD

     2,900         31         14   
 

Toll Holdings LTD

     5,317         27         25   
 

Toray Inds Inc

     2,396         14         15   
 

Toshiba Corp

     13,000         47         51   
 

Total SA

     4,048         216         208   

 

28


Table of Contents

Lockheed Martin Corporation Salaried Savings Plan

Employer Identification Number 52-1893632, Plan Number 017

Schedule H, Line 4i – Schedule of Assets (Held at End of Year)***

December 31, 2012

 

         (c)
Description of
Investment, Including
Maturity Date, Rate of
            (e)  
    (b)    Interest, Collateral, Par,      (d)      Current  

(a)

 

Identity of Issue, Borrower, Lessor, or Similar Party

   or Maturity Value      Cost      Value  
                (In thousands)  
 

Common Stock (continued)

        
 

Toyota Motor Corp

     3,600       $ 131       $ 167   
 

Transalta Corp

     8,423         161         128   
 

Transcanada Corp

     3,664         153         173   
 

Transcontinental

     2,819         27         32   
 

TSI Holdings Co LTD

     6,095         46         35   
 

Turkiye Garanti Bankasi

     1,081         5         6   
 

Turkiye Halk Banka Try1

     12,250         108         120   
 

UBS AG

     4,129         69         64   
 

Unicredit SPA

     10,239         56         50   
 

Unilever N V New York

     10,500         349         402   
 

Unilever NV CVA

     5,624         185         214   
 

Unilever PLC

     8,919         259         343   
 

Union Pacific Corp

     2,465         243         310   
 

United Health Group Inc

     7,500         274         407   
 

United Parcel Service Inc

     8,500         582         627   
 

United Technologies Corp

     6,042         428         496   
 

UPM-Kymmene Corp

     2,730         35         32   
 

US Bancorp

     11,400         283         364   
 

Vale SA

     780         14         16   
 

Vinci SA

     867         46         41   
 

Visa Inc

     9,120         727         1,382   
 

Vivendi SA

     7,546         193         169   
 

Vodafone Group

     251,296         685         631   
 

Wal-Mart De Mexico

     222         6         7   
 

Walt Disney Co

     16,764         601         835   
 

Wells Fargo & Co

     32,400         1,074         1,107   
 

Wesfarmers LTD

     2,918         93         112   
 

West Japan Railway

     2,100         90         83   
 

Westpac Banking Corp

     5,193         115         140   
 

Wirecard AG

     5,584         83         137   

 

29


Table of Contents

Lockheed Martin Corporation Salaried Savings Plan

Employer Identification Number 52-1893632, Plan Number 017

Schedule H, Line 4i – Schedule of Assets (Held at End of Year)***

December 31, 2012

 

         (c)
Description of
Investment, Including
Maturity Date, Rate of
            (e)  
    (b)    Interest, Collateral, Par,      (d)      Current  

(a)

 

Identity of Issue, Borrower, Lessor, or Similar Party

   or Maturity Value      Cost      Value  
                (In thousands)  
 

Common Stock (continued)

        
 

WIS Energy

     7,364       $ 184       $ 271   
 

WM Morrison Supermarkets PLC

     9,589         43         41   
 

Woodside Petroleum

     1,129         42         40   
 

Woolworths LTD

     4,626         125         141   
 

WPP PLC

     24,077         269         348   
 

Xstrata PLC

     15,413         313         265   
 

Yamana Gold Inc

     4,971         82         85   
 

Yamato Holdings

     2,600         40         39   
 

Yara International

     648         30         32   
 

Zurich Financial Services

     293         58         78   
       

 

 

    

 

 

 
 

Total Common Stock

      $ 77,853       $ 87,725   
 

Preferred Stock

        
 

Companhia De Bebidas Das Americas ADR

     399       $ 15       $ 17   
 

Itau Unibanco Holding SA ADR

     595         10         10   
 

Klabin SA

     2,547         9         16   
 

Petroleo Brasileiro Petrobras SA ADR

     430         10         8   
 

Volkswagen AG

     716         129         162   
       

 

 

    

 

 

 
 

Total Preferred Stock

      $ 173       $ 213   
 

Partnership/Joint Venture Interests

        
 

Enterprise Products Partners LP

     554       $ 28       $ 28   
 

Memorial Prodtn Partnerships LP

     523         14         16   
 

Plains All American Pipeline LP

     928         37         42   
       

 

 

    

 

 

 
 

Total Partnership/Joint Venture Interests

      $ 79       $ 86   

 

30


Table of Contents

Lockheed Martin Corporation Salaried Savings Plan

Employer Identification Number 52-1893632, Plan Number 017

Schedule H, Line 4i – Schedule of Assets (Held at End of Year)***

December 31, 2012

 

         (c)
Description of
Investment, Including
Maturity Date, Rate of
            (e)  
    (b)    Interest, Collateral, Par,      (d)      Current  

(a)

 

Identity of Issue, Borrower, Lessor, or Similar Party

   or Maturity Value      Cost      Value  
                (In thousands)  
 

Value of Interest in Registered Investment Companies

        
 

FTSE China 25 Index Fund

     216       $ 8       $ 9   
 

Market Vectors Gold Miners ETF

     12,685         647         588   
 

MSCI Emerging Markets Index Fund

     1,865         76         83   
 

MSCI Malaysia Free Index Fund

     1,061         16         16   
 

MSCI South Korea Capped Index Fund

     606         36         38   
 

MSCI Switzerland Capped Index Fund

     1,295         29         35   
 

Northern Institutional Funds Government Portfolio

     79,688,272         79,688         79,688   
 

Palladium Tracking Shares Ben Int

     1,556         102         108   
 

Powershares DB Commodity Index Tracking Fund

     238,069         6,582         6,613   
 

S&P India Nifty 50 Index Fund

     317         8         8   
 

S&P Latin America 40 Index Fund

     109         5         5   
 

S&P/TSX 60 Index Fund

     1,646         27         29   
 

S&P/TSX Global Gold Index Fund

     26,849         534         509   
 

SPDR Gold Trust Gold Shares

     203         31         33   
 

Van Eck International Investor Gold Fund

     103         3         2   
 

Vanguard FTSE Emerging Markets ETF

     208,734         8,776         9,295   
 

Vanguard Tax-Managed International Fund

     426,000         13,835         15,008   
 

Vision Opportunity China Fund LTD

     50,000         19         6   
       

 

 

    

 

 

 
 

Total Value of Interest in Registered Investment Companies

  

   $ 110,422       $ 112,073   

 

31


Table of Contents

Lockheed Martin Corporation Salaried Savings Plan

Employer Identification Number 52-1893632, Plan Number 017

Schedule H, Line 4i – Schedule of Assets (Held at End of Year)***

December 31, 2012

 

         (c)
Description of
Investment, Including
Maturity Date, Rate of
            (e)  
    (b)    Interest, Collateral, Par,      (d)      Current  

(a)

 

Identity of Issue, Borrower, Lessor, or Similar Party

   or Maturity Value      Cost      Value  
                (In thousands)  
 

Cash and Cash Equivalents

     20,882,532       $ 20,883       $ 20,883   
 

Other Investments

        
 

American Tower Corp

     6,290       $ 284       $ 486   
 

Brazil Indexed Notes due 05/15/2045

     120         156         180   
 

Bundesrepub. Deutschlan 2.5% Bonds due 04/07/2044

     100,000         134         142   
 

Dexus Property Group Stapled

     47,501         44         50   
 

Digital Realty Trust Inc

     2,158         158         146   
 

Malaysia 0% T-Bills 2/15/2013

     810,000         261         264   
 

Malaysia 0% T-Bills 1/31/2013

     940,000         299         307   
 

Mexico 3.5% Bonds 12/14/2017

     16,240         671         678   
 

Mexico 8.5% Bonds 11/18/2038

     93,950         885         914   
 

Mirvac Group Stapled Securities

     49,406         60         76   
 

SCA Property Group Stapled

     925         1         1   
 

Simon Property Group Inc

     1,600         153         253   
 

Stockland NPV Stapled Units

     23,974         89         88   
 

Westfield Group NPV Stapled Units

     11,706         110         128   
 

Westfield Retail T Units NPV Stapled Units

     20,924         55         66   
 

Weyerhaeuser Co

     3,700         93         103   
       

 

 

    

 

 

 
 

Total Other Investments

      $ 3,453       $ 3,882   
       

 

 

    

 

 

 
 

Total 401(h) Trust**

      $ 313,953       $ 339,638   
       

 

 

    

 

 

 

*

 

Notes receivable from participants (Interest rates ranging from 3.25% to 10.50%; varying maturities)

        —         $ 234,353   

 

* Party-in-interest for which a statutory exemption exists.
** 401(h) Trust net assets include interest and dividends receivable of $9,443,000 and pending trades receivable of $1,313,000 and payable of $9,649,000
*** Schedule reflects the assets held in the 401(h) account and notes receivable from participants and excludes assets held in the Lockheed Martin Corporation Defined Contribution Plans Master Trust.

 

32


Table of Contents

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, Lockheed Martin Corporation, as Plan Administrator, has duly caused this annual report to be signed on its behalf of the Plan by the undersigned hereunto duly authorized.

 

     

Lockheed Martin Corporation Salaried

Savings Plan, by Lockheed Martin

Corporation as Plan Administrator

Date  

June 21, 2013

    by:  

/s/ David Filomeo

        David Filomeo, Vice President,
        Total Rewards & Performance Management

 

33


Table of Contents

EXHIBIT INDEX

 

Exhibit
Number

  

Description

23    Consent of Independent Registered Public Accounting Firm

 

34