Lockheed Martin 2015 Annual Report Download - page 106

Contributions and Expected Benefit Payments
The funding of our qualified defined benefit pension plans is determined in accordance with ERISA, as amended by the
PPA, and in a manner consistent with CAS and Internal Revenue Code rules. In 2015, we made $5 million in contributions to
our new Sikorsky bargained qualified defined benefit pension plan and we plan to make approximately $25 million in
contributions to this plan in 2016.
The following table presents estimated future benefit payments, which reflect expected future employee service, as of
December 31, 2015 (in millions):
2016 2017 2018 2019 2020 2021 - 2025
Qualified defined benefit pension plans $2,160 $2,240 $2,320 $2,410 $2,500 $13,670
Retiree medical and life insurance plans 190 190 200 200 200 940
Defined Contribution Plans
We maintain a number of defined contribution plans, most with 401(k) features, that cover substantially all of our
employees. Under the provisions of our 401(k) plans, we match most employees’ eligible contributions at rates specified in
the plan documents. Our contributions were $393 million in 2015, $385 million in 2014 and $383 million in 2013, the
majority of which were funded in our common stock. Our defined contribution plans held approximately 40.0 million and
41.7 million shares of our common stock as of December 31, 2015 and 2014.
Note 12 – Stockholders’ Equity
At December 31, 2015 and 2014, our authorized capital was composed of 1.5 billion shares of common stock and
50 million shares of series preferred stock. Of the 305 million shares of common stock issued and outstanding as of
December 31, 2015, 303 million shares were considered outstanding for Balance Sheet presentation purposes; the remaining
shares were held in a separate trust. Of the 316 million shares of common stock issued and outstanding as of December 31,
2014, 314 million shares were considered outstanding for Balance Sheet presentation purposes; the remaining shares were
held in a separate trust. No shares of preferred stock were issued and outstanding at December 31, 2015 or 2014.
Repurchases of Common Stock
During 2015, we repurchased 15.2 million shares of our common stock for $3.1 billion. During 2014 and 2013, we paid
$1.9 billion and $1.8 billion to repurchase 11.5 million and 16.2 million shares of our common stock.
On September 24, 2015, our Board of Directors approved a $3.0 billion increase to our share repurchase program.
Inclusive of this increase, the total remaining authorization for future common share repurchases under our program was
$3.6 billion as of December 31, 2015. As we repurchase our common shares, we reduce common stock for the $1 of par
value of the shares repurchased, with the excess purchase price over par value recorded as a reduction of additional paid-in
capital. Due to the volume of repurchases made under our share repurchase program, additional paid-in capital was reduced
to zero, with the remainder of the excess purchase price over par value of $2.4 billion and $1.1 billion recorded as a reduction
of retained earnings in 2015 and 2014.
We paid dividends totaling $1.9 billion ($6.15 per share) in 2015, $1.8 billion ($5.49 per share) in 2014 and $1.5 billion
($4.78 per share) in 2013. We have increased our quarterly dividend rate in each of the last three years, including a
10% increase in the quarterly dividend rate in the fourth quarter of 2015. We declared quarterly dividends of $1.50 per share
during each of the first three quarters of 2015 and $1.65 per share during the fourth quarter of 2015; $1.33 per share during
each of the first three quarters of 2014 and $1.50 per share during the fourth quarter of 2014; and $1.15 per share during each
of the first three quarters of 2013 and $1.33 per share during the fourth quarter of 2013.
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