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LOCKHEED MARTIN CORPORATION
2011 ANNUAL REPORT
F-35B: Proud to Serve
the U.S. Marines

Table of contents

  • Page 1
    LOCKHEED MARTIN CORPORATION 2011 ANNUAL REPORT F-35B: Proud to Serve the U.S. Marines

  • Page 2
    ... Continuing Operations Net Earnings Cash Dividends Per Common Share Average Diluted Common Shares Outstanding Cash, Cash Equivalents and Short-Term Investments Total Assets Total Debt Stockholders' Equity Common Shares Outstanding at Year-End Net Cash Provided by Operating Activities 2011 2010 2009...

  • Page 3
    ... of our leadership team against the backdrop of our NexGen Cyber Innovation and Technology Center underscores the commitment of Lockheed Martin's leadership to protecting our customers' networks with trusted, reliable, mission-resilient systems. Lockheed Martin addresses cyber security challenges...

  • Page 4
    ...strategy. In 2011, we generated $4.3 billion in cash from operations after making $2.3 billion in contributions to our pension plans. We deployed cash to generate shareholder value through cash dividends of $1.1 billion and share repurchases of $2.4 billion. Our total shareholder return for the year...

  • Page 5
    ... international order to produce the Terminal High Altitude Area Defense (THAAD) missile defense system for export to the United Arab Emirates. In 2011, we also witnessed the last Space Shuttle mission. For 30 years - in partnership with NASA - Lockheed Martin demonstrated a dedication to excellence...

  • Page 6
    ... far as program performance and cost are concerned, "Lockheed Martin is the one to beat.'' Aviation Week's recognition speaks volumes about the 123,000 people of this company who support our customers, and also give so much to our communities. For the seventh consecutive year, in 2011, our employees...

  • Page 7
    ... existing capabilities for new applications. We should also continue to seek and implement innovative business models. • Expand our position within targeted segments with market-based strategies. This also means more pursuits internationally, and greater synergies between Lockheed Martin products...

  • Page 8
    ... for each member of our Board of Directors is located in our 2012 Proxy Statement under the caption "Proposal 1 - Election of Directors." Executive Officers Linda R. Gooden Executive Vice President Information Systems & Global Solutions Christopher J. Gregoire Vice President and Controller...

  • Page 9
    ... 20549 Form 10-K ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2011 Commission file number 1-11437 LOCKHEED MARTIN CORPORATION (Exact name of registrant as specified in its charter) Maryland (State or other jurisdiction...

  • Page 10
    ...14 Directors, Executive Officers and Corporate Governance ...Executive Compensation ...Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters ...Certain Relationships and Related Transactions, and Director Independence ...Principal Accounting Fees and Services...

  • Page 11
    ... four business segments: Aeronautics, Electronic Systems, Information Systems & Global Solutions (IS&GS), and Space Systems. For more information concerning our segment presentation, including comparative segment net sales, operating profit, and related financial information for 2011, 2010, and 2009...

  • Page 12
    ... of our total consolidated net sales. Electronic Systems' customers include the military services and various government agencies of the U.S. and allied countries around the world as well as commercial and other customers. In 2011, U.S. Government customers accounted for 73%, international customers...

  • Page 13
    ... net sales in 2011, 2010, or 2009. IS&GS provides management services, information technology solutions, and advanced technology expertise across a broad spectrum of applications. IS&GS supports the needs of customers in human capital planning, data protection and sharing, cyber-security, financial...

  • Page 14
    ... international customers accounted for 2%, and U.S. commercial and other customers accounted for 2% of Space Systems' net sales. Sales from Space Systems' satellite products and services represented 12%, 13%, and 13% of our total consolidated net sales in 2011, 2010, and 2009. No other Space Systems...

  • Page 15
    ... to manage raw materials supply risk through long-term contracts and by maintaining a stock of key materials in inventory. Aluminum and titanium are important raw materials used in certain of our Aeronautics and Space Systems programs. Long-term agreements have helped enable a continued supply of...

  • Page 16
    ... are intended to help identify forward-looking statements. Statements and assumptions with respect to future sales, income and cash flows, program performance, the outcome of litigation, environmental remediation cost estimates, and planned acquisitions or dispositions of assets are examples of...

  • Page 17
    ... in procurement of products and services that characterized the government's first quarter of fiscal year 2012 when the operations of the federal government were financed through a series of continuing resolution temporary funding measures. Under such conditions, large or complex programs are...

  • Page 18
    ..., purchasing, property, estimating, EVMS, compensation, accounting, budgeting, billing, labor, and information systems. For discussion of the EVMS at our Fort Worth location, see "Status of the F-35 Program" in Management's Discussion and Analysis of Financial Condition and Results of Operations...

  • Page 19
    ... performance, advanced technology solutions, and service at an affordable cost and with the agility that our customers require to satisfy their mission objectives. International sales may pose different risks. In 2011, our sales to international customers (including foreign military sales funded...

  • Page 20
    ... of contract types which are intended to address changing risk and reward profiles as a program matures. Contract types include cost-reimbursable, fixed-price incentive, fixed-price, and time-and-materials contracts. Contracts for development programs with complex design and technical challenges are...

  • Page 21
    ... may cause our earnings, cash flows from operations, and stockholders' equity to fluctuate significantly from year to year. Many of our employees are covered by defined benefit pension plans, and we provide certain health care and life insurance benefits to eligible retirees. The impact of these...

  • Page 22
    ... and attempts to gain access to our company sensitive information, as do our customers, suppliers, subcontractors and joint venture partners. We may experience similar security threats at customer sites that we operate and manage as a contractual requirement. Prior cyber attacks directed at us have...

  • Page 23
    ... are long-term in nature. Another example is the goodwill assets recorded on our balance sheet, which represent greater than 25% of our total assets, and are subject to annual impairment testing. If we experience changes or factors arise that negatively affect the expected cash flows of a reporting...

  • Page 24
    ...; Denver, Colorado; and Newtown, Pennsylvania. • Corporate activities - Lakeland, Florida and Bethesda, Maryland. The following is a summary of our floor space by business segment at December 31, 2011: (Square feet in millions) Aeronautics Electronic Systems Information Systems & Global Solutions...

  • Page 25
    ... September 2008 to December 2009; Executive Vice President - Global Sustainment for Aeronautics from February 2007 to August 2008; President, Lockheed Martin Logistics Services Company from January 2007 to February 2007; and President and General Manager, Kelly Aviation Center, L.P. from August 2004...

  • Page 26
    ...of Lockheed Martin Space Systems Company from July 2003 to June 2006. Kenneth R. Possenriede (51), Vice President and Treasurer Mr. Possenriede has served as Vice President and Treasurer since July 2011. He previously served as Vice President of Finance and Business Operations for Electronic Systems...

  • Page 27
    ...the New York Stock Exchange (NYSE) under the symbol LMT. Information concerning the stock prices based on intra-day trading prices as reported on the NYSE composite transaction tape and dividends paid during the past two years is as follows: Common Stock - Dividends Paid Per Share and Market Prices...

  • Page 28
    Issuer Purchases of Equity Securities The following table provides information about our repurchases of common stock during the three-month period ended December 31, 2011. Average Price Paid Per Share Total Number of Shares Purchased as Part of Publicly Announced Program (1) Amount Available for ...

  • Page 29
    ...PER COMMON SHARE BALANCE SHEET Cash, cash equivalents and short-term investments (d) Total current assets Goodwill Total assets (e) Total current liabilities Long-term debt, net (d) Total liabilities (e) Stockholders' equity (e) COMMON SHARES AT YEAR-END CASH FLOW DATA Net cash provided by operating...

  • Page 30
    ... commercial and other customers. Our main areas of focus are in defense, space, intelligence, homeland security, and information technology, including cyber security. We have four business segments: Aeronautics, Electronic Systems, Information Systems & Global Solutions (IS&GS), and Space Systems...

  • Page 31
    ... in procurement of products and services that characterized the first quarter of the government's fiscal year 2012 when the operations of the federal government were financed through a series of continuing resolution temporary funding measures. As we begin 2012, presidential election year activities...

  • Page 32
    ...also provide program management, business strategy and consulting, complex systems development and maintenance, complete life-cycle software support, information assurance, and enterprise solutions. We believe that there will be continued demand by federal and civil government agencies for upgrading...

  • Page 33
    ... production aircraft on order. Although not exclusively related to the F-35 program, on October 4, 2010, the Defense Contracting Management Agency (DCMA) withdrew its prior validation and determination of compliance of the earned value management system (EVMS) at our Fort Worth, Texas location. EVMS...

  • Page 34
    ...and Engineers, Inc. (PAE). In 2010, we closed on the sale of Enterprise Integration Group (EIG). For additional information, see Note 14 to the accompanying consolidated financial statements. Results of Operations Since our operating cycle is long-term and involves many types of design, development...

  • Page 35
    ... in the Aeronautics, Electronic Systems, and Space Systems business segments, and most of our services sales are generated in our Electronic Systems and IS&GS business segments. Net Sales (In millions) Net Sales Products Services Total 2011 $36,925 9,574 $46,499 2010 $36,380 9,291 $45,671 2009 $35...

  • Page 36
    ... 2010 due to activities on a number of smaller contracts. Most of our services sales are in the Electronic Systems and IS&GS business segments. Services sales at Electronic Systems increased about $645 million in 2010 compared to 2009 primarily due to growth on various logistic and training programs...

  • Page 37
    ... F-35 program and less work on mature programs, such as F-22 and F-16. Development and initial production contracts yield lower profits than mature full rate programs. Cost of Services Sales Cost of services sales at Electronic Systems increased about $180 million in 2011 compared to 2010 primarily...

  • Page 38
    ... in the discount rate in 2011, together with the effect of the recognition of the 2008 investment losses, partially offset by the effects of investment gains in 2009 and 2010 (each as compared to our 8.50% long-term rate of return assumption). For more information, see the related discussion in...

  • Page 39
    ... statements. Discussion of Business Segments We operate in four business segments: Aeronautics, Electronic Systems, IS&GS, and Space Systems. We organize our business segments based on the nature of the products and services offered. The following table presents net sales and operating profit...

  • Page 40
    ...Sales Aeronautics Electronic Systems Information Systems & Global Solutions Space Systems Total Operating Profit Aeronautics Electronic Systems Information Systems & Global Solutions Space Systems Total business segments Unallocated corporate expense: Non-cash FAS/CAS pension adjustment: FAS pension...

  • Page 41
    ...programs. Aeronautics Our Aeronautics business segment is engaged in the research, design, development, manufacture, integration, sustainment, support, and upgrade of advanced military aircraft, including combat and air mobility aircraft, unmanned air vehicles, and related technologies. Aeronautics...

  • Page 42
    ... and fixed-wing aircraft; manned and unmanned ground vehicles; mission operations support, readiness, engineering support, and integration services; simulation and training services; and energy programs. Electronic Systems' major programs include the Aegis Combat System, PAC-3, THAAD, MLRS, Hellfire...

  • Page 43
    ... provides management services, Information Technology (IT) solutions, and advanced technology expertise across a broad spectrum of applications. IS&GS supports the needs of customers in human capital planning, data protection and sharing, cyber-security, financial services, health care, energy and...

  • Page 44
    ... Space Shuttle program, which is winding down following the completion of the last mission in 2011. Space Systems' operating results included the following: (In millions) Net sales Operating profit Operating margin Backlog at year-end 2011 $ 8,134 989 12.2% 16,000 2010 $ 8,242 968 11.7% 17,800 2009...

  • Page 45
    ... service and repayments, capital expenditures, share repurchases, dividends, acquisitions, and postretirement benefit plan funding. We have accessed the capital markets on limited occasions, as needed or when opportunistic. We expect our cash from operations to continue to be sufficient to support...

  • Page 46
    ... also incur capital expenditures for IT to support programs and general enterprise IT infrastructure as well as for the development or purchase of internal-use software. We have a balanced cash deployment strategy to enhance stockholder value and position ourselves to take advantage of new business...

  • Page 47
    ... for IT to support programs and general enterprise IT infrastructure. Capital expenditures for property, plant, and equipment amounted to $814 million in 2011, $820 million in 2010, and $852 million in 2009. Costs associated with the development or purchase of internal-use software amounted to $173...

  • Page 48
    ... in cash, which was recorded as a discount and is being amortized as additional interest expense over the life of the New Notes using the effective interest method. The New Notes are included on our Balance Sheet net of unamortized discounts. In 2009, we issued a total of $1.5 billion of long-term...

  • Page 49
    ..., 2011. Such amounts mainly include expected payments under deferred compensation plans, non-qualified pension plans, environmental liabilities, and business acquisition agreements. Purchase obligations related to operating activities include agreements and contracts that give the supplier recourse...

  • Page 50
    ... related obligations or liabilities are also recorded on the Balance Sheet, either as reductions of inventories, as customer advances and amounts in excess of costs incurred, or as other liabilities. Approximately $1.8 billion of the standby letters of credit were issued to secure advance payments...

  • Page 51
    ... services to the U.S. Government, sales are generally recorded using the cost-to-cost method. Award fees and incentives, as well as penalties related to contract performance, are considered in estimating sales and profit rates on contracts accounted for under the POC method. Estimates of award...

  • Page 52
    ...for 2011, 2010, and 2009, as we were able to successfully retire risks across a broad portfolio of contracts in those periods. Services Method of Accounting For cost-reimbursable contracts for services to non-U.S. Government customers that provide for award and incentive fees, we record net sales as...

  • Page 53
    ... benefit obligations at December 31, 2011 related to our retiree medical plans, compared to 5.5% at the end of 2010 and 5.875% at the end of 2009. We evaluate several data points in order to arrive at an appropriate discount rate, including results from cash flow models, quoted rates from long-term...

  • Page 54
    Our stockholders' equity has been reduced by $11.2 billion from the annual year-end measurement of the funded status of our postretirement benefit plans, inclusive of the December 31, 2011 adjustment of $2.9 billion. These noncash, after-tax amounts primarily represent net actuarial losses resulting...

  • Page 55
    ...as general and administrative costs. Under existing government regulations, these and other environmental expenditures relating to our U.S. Government business, after deducting any recoveries received from insurance or other PRPs, are allowable in establishing prices of our products and services. As...

  • Page 56
    ...future sales and operating costs, based primarily on existing firm orders, expected future orders, contracts with suppliers, labor agreements, and general market conditions. The discount rate applied to our forecasts of future cash flows is based on our estimated weighted average cost of capital. In...

  • Page 57
    ... compensation plans. As of December 31, 2011, investments in the Rabbi Trust totaled $781 million and are reflected at fair value on our Balance Sheet in other assets. The Rabbi Trust holds investments in marketable equity securities and fixed-income securities that are exposed to price changes...

  • Page 58
    ... Financial Statements Board of Directors and Stockholders Lockheed Martin Corporation We have audited the accompanying consolidated balance sheets of Lockheed Martin Corporation as of December 31, 2011 and 2010, and the related consolidated statements of earnings, stockholders' equity, and cash...

  • Page 59
    Lockheed Martin Corporation Consolidated Statements of Earnings (In millions, except per share data) Net Sales Products Services Total net sales Cost of Sales Products Services Severance and other charges Other unallocated corporate costs Total cost of sales Gross profit Other income, net Operating ...

  • Page 60
    ... operation held for sale Total current liabilities Long-term debt, net Accrued pension liabilities Other postretirement benefit liabilities Other liabilities Total liabilities Stockholders' equity Common stock, $1 par value per share Additional paid-in capital Retained earnings Accumulated...

  • Page 61
    ... Accounts payable Customer advances and amounts in excess of costs incurred Postretirement benefit plans Income taxes Other, net Net cash provided by operating activities Investing Activities Expenditures for property, plant and equipment Expenditures for capitalized internal-use software Net cash...

  • Page 62
    ... Martin Corporation Consolidated Statements of Stockholders' Equity Accumulated Additional Other Total Common Paid-In Retained Comprehensive Stockholders' Stock Capital Earnings Loss Equity $393 $- $11,621 $ (9,149) $ 2,865 Comprehensive Income (Loss) (In millions, except per share data) Balance...

  • Page 63
    ... the development or purchase of internal-use software. The amounts capitalized are included in other assets on our Balance Sheets and are amortized on a straight-line basis over the estimated useful life of the resulting software, which ranges from two to six years. As of December 31, 2011 and 2010...

  • Page 64
    ...associated with the development or purchase of internal-use software from operating cash flows to investing cash flows. Cash flows for all years above have been adjusted for this change. Cash payments for internal-use software were $173 million in 2011, $254 million in 2010, and $314 million in 2009...

  • Page 65
    ...share) in 2011, $890 million ($2.40 per share) in 2010, and $1.0 billion ($2.60 per share) in 2009. Services Method of Accounting - For cost-reimbursable contracts for services to non-U.S. Government customers, we record net sales as services are performed, except for award and incentive fees. Award...

  • Page 66
    ... totaled $781 million and $843 million and was included in other assets on the Balance Sheets. Our trading securities are held in a Rabbi Trust, which includes investments to fund certain of our non-qualified deferred compensation plans. Net gains on marketable securities in 2011, 2010, and 2009...

  • Page 67
    ... instruments. Stock-based compensation - Compensation cost related to all share-based payments (stock options and restricted stock units) is measured at the grant date based on the estimated fair value of the award. We generally recognize the compensation cost ratably over a three-year vesting...

  • Page 68
    ... manned and unmanned ground vehicles; mission operations support, readiness, engineering support, and integration services; simulation and training services; and energy programs. Electronic Systems' major programs include the Aegis Combat System, Patriot Advanced Capability-3, Terminal High Altitude...

  • Page 69
    ... business segment information and Sim-Industries B.V. in the Electronic Systems business segment information from the date of acquisition in the fourth quarter through the end of the year (Note 14). The following table presents net sales and operating profit of our four business segments. Net sales...

  • Page 70
    ... & Global Solutions Space Systems Total business segments Corporate activities Total Expenditures for property, plant and equipment and capitalized software Aeronautics Electronic Systems Information Systems & Global Solutions Space Systems Total business segments Corporate activities Total 2011 $14...

  • Page 71
    ...-cash FAS/CAS pension adjustment Stock-based compensation and other, net Total Net Sales by Customer Category (In millions) U.S. Government Aeronautics Electronic Systems Information Systems & Global Solutions Space Systems Total International (a) Aeronautics Electronic Systems Information Systems...

  • Page 72
    ... Systems & Global Solutions Space Systems Total business segments Corporate assets (b) Assets of discontinued operation held for sale Total Goodwill Aeronautics Electronic Systems Information Systems & Global Solutions Space Systems Total (c) Customer advances and amounts in excess of costs...

  • Page 73
    ... related to long-term contracts and programs in progress Less: customer advances and progress payments Other inventories Total inventories, net 2011 $ 7,129 (5,425) 1,704 777 $ 2,481 2010 $ 6,508 (4,788) 1,720 643 $ 2,363 Work-in-process inventories at December 31, 2011 and 2010 included general...

  • Page 74
    ... tax rate for 2011 by 2.5%. We participate in the IRS Compliance Assurance Process program. The IRS examinations of the years 2010 and 2009 were completed in the fourth quarter of 2011 and 2010. Except for certain issues in our 2009 return that are pending in the IRS Appeals Division, resolution...

  • Page 75
    ... compensation and benefits Pensions Other postretirement benefit obligations Contract accounting methods Sale of discontinued operations Foreign company operating losses and credits Other Valuation allowance (a) Deferred tax assets, net Deferred tax liabilities related to: Goodwill and purchased...

  • Page 76
    ... pension plans, and we provide certain health care and life insurance benefits to eligible retirees (collectively, postretirement benefit plans). We also sponsor nonqualified defined benefit pension plans to provide for benefits in excess of qualified plan limits. Non-union represented employees...

  • Page 77
    ...' equity. The funded status is measured as the difference between the fair value of the plan's assets and the benefit obligation of the plan. The net periodic benefit cost recognized each year included the following components: Qualified Defined Benefit Pension Plans (a) 2011 2010 2009 $ 974...

  • Page 78
    ... Participants' contributions Ending balance at fair value Unfunded status of the plans Amounts recognized in the Balance Sheets Prepaid pension asset Accrued postretirement benefit liabilities Accumulated other comprehensive loss (pre-tax) related to: Net actuarial losses Prior service cost (credit...

  • Page 79
    ...% Retiree Medical and Life Insurance Plans 2011 2010 2009 4.500% 5.500% 5.875% 8.000% 8.500% 8.500% 9.500% 10.000% 5.000% 5.000% 2021 2021 Discount rate Expected long-term rate of return on assets Rate of increase in future compensation levels Health care trend rate assumed for next year Ultimate...

  • Page 80
    ... certain fair value disclosures related to postretirement benefit plan assets, even though those assets are not included on our Balance Sheets. The following table presents the fair value of the assets of our qualified defined benefit pension plans and retiree medical and life insurance plans by...

  • Page 81
    ...-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...

  • Page 82
    ... at December 31, 2011: the Lockheed Martin 2011 Incentive Performance Award Plan (the Award Plan) and the Lockheed Martin Directors Equity Plan (the Directors Plan). Under the Award Plan, we have the right to grant key employees stock-based incentive awards, including options to purchase common 74

  • Page 83
    ...under both the Award Plan and the Prior Plan are based on the fair market value of our common stock on the date of the award. We recognize the related compensation expense over the three-year vesting period. Employees who are granted RSUs receive the right to receive shares of stock after completion...

  • Page 84
    ... a remaining term equal to the expected life assumed at the date of grant. The dividend yield is determined based on estimated dividend payments and changes to our stock price during the expected option life. We estimate volatility based on the historical volatility of our daily stock price over the...

  • Page 85
    ...the City of Pontiac General Employees' Retirement System case (described above). On September 9, 2011, Joyce Cavanagh-Wood, filed a shareholder derivative action in the Circuit Court for Montgomery County, Maryland, naming Mr. Stevens, Mr. Tanner, and each of the current directors of Lockheed Martin...

  • Page 86
    ... in our net sales and cost of sales in future periods pursuant to U.S. Government regulations. At the time a liability is recorded for future environmental costs, we record a receivable for estimated future recovery considered probable through the pricing of products and services to agencies of the...

  • Page 87
    ... are pursuing claims for contribution to site cleanup costs against other PRPs, including the U.S. Government. Both the U.S. Environmental Protection Agency and the California Office of Environmental Health Hazard Assessment announced plans in January 2011 to regulate two chemicals, perchlorate and...

  • Page 88
    ... to the value of customer relationships and trade names we acquired. Divestitures During the third quarter of 2011, we committed to a plan to sell Savi Technology, Inc. (Savi), a logistics business within our Electronic Systems business segment, within one year. The operating results of Savi...

  • Page 89
    ... on our 2010 Statement of Cash Flows. EIG's operating results are included in discontinued operations on our Statements of Earnings for 2009 and 2010 through the date of sale. Additional amounts related to the completion of certain post-closing items, such as working capital adjustments, may...

  • Page 90
    ... of unamortized discounts. The fair values were estimated based on quoted market prices of debt with terms and due dates similar to our long-term debt instruments. Note 16 - Summary of Quarterly Information (Unaudited) (In millions, except per share data) Net sales (b) Operating profit Net earnings...

  • Page 91
    ... internal control over financial reporting. Our internal control system was designed to provide reasonable assurance to our management and board of directors regarding the reliability of financial reporting and the preparation of financial statements for external purposes. Our management conducted...

  • Page 92
    ... accordance with the standards of the Public Company Accounting Oversight Board (United States), the consolidated balance sheets of Lockheed Martin Corporation as of December 31, 2011 and 2010, and the related consolidated statements of earnings, stockholders' equity, and cash flows for each of the...

  • Page 93
    ... Over Financial Reporting There were no changes in our internal control over financial reporting during the most recently completed fiscal quarter that materially affected, or are reasonably likely to materially affect, our internal control over financial reporting. ITEM 9B. OTHER INFORMATION None...

  • Page 94
    ..., by contacting Investor Relations, Lockheed Martin Corporation, 6801 Rockledge Drive, Bethesda, Maryland 20817. We are required to disclose any change to, or waiver from, our Code of Ethics and Business Conduct for our Chief Executive Officer and senior financial officers. We use our website to...

  • Page 95
    ...-K. Equity Compensation Plan Information The following table provides information about our equity compensation plans that authorize the issuance of shares of Lockheed Martin common stock to employees and directors. The information is provided as of December 31, 2011. Number of securities remaining...

  • Page 96
    ... and Related Person Transactions of Directors, Executive Officers, and 5 Percent Stockholders," and "Corporate Governance - Director Independence" in the 2012 Proxy Statement, and that information is incorporated by reference in this Form 10-K. ITEM 14. PRINCIPAL ACCOUNTING FEES AND SERVICES The...

  • Page 97
    ...' Equity - Years ended December 31, 2011, 2010, and 2009 ...Notes to Consolidated Financial Statements ... 51 52 53 54 55 The report of Lockheed Martin Corporation's independent registered public accounting firm with respect to the abovereferenced financial statements and their report on internal...

  • Page 98
    ... Savings Plan, as amended (incorporated by reference to Exhibit 10.9 to Lockheed Martin Corporation's Annual Report on Form 10-K for the year ended December 31, 2010). Amendment to Terms of Outstanding Stock Option Relating to Exercise Period for Employees of Divested Business (incorporated...

  • Page 99
    ...the Lockheed Martin Corporation 2003 Incentive Performance Award Plan (incorporated by reference to Exhibit 10.39 to Lockheed Martin Corporation's Annual Report on Form 10-K for the year ended December 31, 2007). Forms of Long-Term Incentive Performance Award Agreements (2009-2011 performance period...

  • Page 100
    ..., 2011). Lockheed Martin Corporation 2011 Incentive Performance Award Plan (incorporated by reference to Appendix A to Lockheed Martin Corporation's Definitive Proxy Statement on schedule 14A filed with the SEC on March 11, 2011). Forms of Long-Term Incentive Performance Award Agreements (2012-2014...

  • Page 101
    ... of the Securities Exchange Act of 1934, the registrant has duly caused this Form 10-K to be signed on its behalf by the undersigned, thereunto duly authorized. LOCKHEED MARTIN CORPORATION Christopher J. Gregoire Vice President and Controller (Chief Accounting Officer) Date: February 23, 2012 93

  • Page 102
    ..., Chief Executive Officer, and Director President and Chief Operating Officer Executive Vice President and Chief Financial Officer Vice President and Controller (Chief Accounting Officer) Director Director Director Director Director Director Director Director Director Director Date February 23, 2012...

  • Page 103
    ...and report financial information; and (b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. 3. 4. ROBERT J. STEVENS Chairman and Chief Executive Officer Date: February 23, 2012

  • Page 104
    ... information; and (b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. 3. 4. BRUCE L. TANNER Executive Vice President and Chief Financial Officer Date: February 23, 2012

  • Page 105
    ... of the Securities Exchange Act of 1934; and (2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Corporation. ROBERT J. STEVENS Chairman and Chief Executive Officer Date: February 23, 2012 A signed original...

  • Page 106
    ...the Securities Exchange Act of 1934; and (2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Corporation. BRUCE L. TANNER Executive Vice President and Chief Financial Officer Date: February 23, 2012 A signed...

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  • Page 109
    ... compliance with the NYSE's Corporate Governance listing standards was submitted by our Chairman and CEO to the NYSE on May 24, 2011. Financial results, stock quotes, dividend news as well as other Lockheed Martin information are available by calling the toll-free number: 1-800-568-9758. A directory...

  • Page 110
    ... who we're working for.® Lockheed Martin Corporation 6801 Rockledge Drive Bethesda, MD 20817 www.LockheedMartin.com The cover and insert of this report are printed on Rolland Enviro100 Print, which contains 100% post-consumer fibre, is manufactured in Canada using renewable biogas energy and is...