Edgar Filing: LOCKHEED MARTIN CORP

Lockheed Martin Corporation Salaried Savings Plan, by Lockheed Martin Corporation as Plan Administrator

Date: June 22, 2015

/s/ J. Richard Jager

J. Richard Jager,

Vice President, Benefits

Form 11-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 11-K

FOR ANNUAL REPORTS OF EMPLOYEE STOCK PURCHASE, SAVINGS

AND SIMILAR PLANS PURSUANT TO SECTION 15(d) OF THE

SECURITIES EXCHANGE ACT OF 1934

(Mark One):

x	Annual report pursuant to Section 15(d) of the Securities Exchange Act of 1934

For the fiscal year ended December 31, 2014

¨	Transition report pursuant to Section 15(d) of the Securities Exchange Act of 1934

Commission File Number: 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

Lockheed Martin Corporation

Salaried Savings Plan

Financial Statements and Supplemental Schedule

Table of Contents


Report of Independent Registered Public Accounting Firm			1

Financial Statements:

Statements of Net Assets Available for Benefits as of December 31, 2014 and 2013			2-3
Statement of Changes in Net Assets Available for Benefits for the Year Ended December 31, 2014			4
Notes to Financial Statements			5

Supplemental Schedule:

Schedule H, Line 4i - Schedule of Assets (Held at End of Year)			14

Signature			28

Exhibit Index			29

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, 2014 and 2013, and the related statement of changes in net assets available for benefits for the year ended December 31, 2014. 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, 2014 and 2013, and the changes in its net assets available for benefits for the year ended December 31, 2014, in conformity with U.S. generally accepted accounting principles.

The accompanying supplemental schedule of assets (held at end of year) as of December 31, 2014, has been subjected to audit procedures performed in conjunction with the audit of the Lockheed Martin Corporation Salaried Savings Plan’s financial statements. The information in the supplemental schedule is the responsibility of the Plan’s management. Our audit procedures included determining whether the information reconciles to the financial statements or the underlying accounting and other records, as applicable, and performing procedures to test the completeness and accuracy of the information presented in the supplemental schedule. In forming our opinion on the information, we evaluated whether such information, including its form and content, is presented in conformity with the Department of Labor’s Rules and Regulations for Reporting and Disclosure under the Employee Retirement Income Security Act of 1974. In our opinion, the information is fairly stated, in all material respects, in relation to the financial statements as a whole.

/s/ Mitchell & Titus, LLP

Washington, D.C.

June 22, 2015

Lockheed Martin Corporation Salaried Savings Plan

Statement of Net Assets Available for Benefits

December 31, 2014

(in thousands)


	ESOP Fund		401(h) account		Participant- Directed Investments			Total
Assets
Investments:
Interest in Lockheed Martin Corporation Defined Contribution Plans Master Trust	$	5,705,138	$	—	$	23,109,866		$	28,815,004
Net assets held in 401(h) account		—		365,153		—			365,153
Receivables:
Participant contributions		—		—		14,985			14,985
Employer contributions		5,111		—		—			5,111
Notes receivable from participants		—		—		237,970			237,970

Total assets		5,710,249		365,153		23,362,821			29,438,223

Liabilities
Administrative expenses payable		—		—		2,739			2,739
Amounts related to obligation of 401(h) account		—		365,153		—			365,153

Total liabilities		—		365,153		2,739			367,892


Net assets reflecting investments at fair value		5,710,249		—		23,360,082			29,070,331
Adjustment from fair value to contract value for fully benefit-responsive investment contracts		—		—		(47,619	)		(47,619	)

Total net assets available for benefits	$	5,710,249	$	—	$	23,312,463		$	29,022,712

The accompanying notes are an integral part of these financial statements.

Lockheed Martin Corporation Salaried Savings Plan

Statement of Net Assets Available for Benefits

December 31, 2013

(in thousands)


	ESOP Fund		401(h) account		Participant- Directed Investments			Total
Assets
Investments:
Interest in Lockheed Martin Corporation Defined Contribution Plans Master Trust	$	4,737,141	$	—	$	21,817,496		$	26,554,637
Net assets held in 401(h) account		—		340,670		—			340,670
Receivables:
Participant contributions		—		—		15,026			15,026
Employer contributions		5,113		—		—			5,113
Notes receivable from participants		—		—		235,704			235,704

Total assets		4,742,254		340,670		22,068,226			27,151,150

Liabilities
Administrative expenses payable		—		—		1,985			1,985
Amounts related to obligation of 401(h) account		—		340,670		—			340,670

Total liabilities		—		340,670		1,985			342,655


Net assets reflecting investments at fair value		4,742,254		—		22,066,241			26,808,495
Adjustment from fair value to contract value for fully benefit-responsive investment contracts		—		—		(14,670	)		(14,670	)

Total net assets available for benefits	$	4,742,254	$	—	$	22,051,571		$	26,793,825

The accompanying notes are an integral part of these financial statements.

Lockheed Martin Corporation Salaried Savings Plan

Statement of Changes in Net Assets Available for Benefits

Year Ended December 31, 2014

(in thousands)


	ESOP Fund		Participant- Directed Investments		Total

Net assets available for benefits at beginning of year	$	4,742,254	$	22,051,571	$	26,793,825


Additions to net assets:
Contributions:
Participant		36,634		845,223		881,857
Employer		282,512		—		282,512

Total contributions		319,146		845,223		1,164,369

Interest in net investment gain from participation in Lockheed Martin Corporation Defined Contribution Plans Master Trust		1,499,624		1,623,368		3,122,992
Interest income on notes receivable from participants		—		10,352		10,352

Total additions		1,818,770		2,478,943		4,297,713

Deductions from net assets:
Distributions and withdrawals		850,534		1,193,126		2,043,660
Administrative expenses		241		33,999		34,240

Total deductions		850,775		1,227,125		2,077,900

Change in net assets		967,995		1,251,818		2,219,813
Transfers from other plans		—		9,074		9,074

Net assets available for benefits at end of year	$	5,710,249	$	23,312,463	$	29,022,712

The accompanying notes are an integral part of these financial statements.

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 about the Plan’s provisions. Participants should refer to the Plan document and 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 U.S. and certain U.S. citizens working abroad. Eligible employees are automatically enrolled in the Plan when they are hired, unless they affirmatively decline to participate.

The Plan includes an Employee Stock Ownership Plan (ESOP) feature. Cash dividends paid on Lockheed Martin common stock in both the Employee Stock Ownership Plan Fund (ESOP Fund) and the Lockheed Martin Stock Fund are automatically reinvested in those funds, unless the participant elects to receive the dividend directly as taxable income.

The assets of the Plan, excluding 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 Voya (formerly named ING). Lockheed Martin is the Plan Sponsor and the Plan Administrator.

Plan Merger and Transfer of Assets

Effective January 1, 2010, most salaried employees in the Corporation’s Information Systems & Global Solutions business segment who were participating in the Lockheed Martin Corporation Operations Support Savings Plan (OSSP) became eligible to contribute to the Plan and ineligible to contribute to the OSSP. In 2011, most of these employees had their account balances transferred from the OSSP to the Plan. Account balances of employees with outstanding loans in the OSSP were not immediately transferred; however, these account balances are subject to transfer to the Plan when the loans are repaid. During 2014, assets of the OSSP in amount of $9,074,000 were transferred to the Plan.

Contributions

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. If automatically enrolled, a participant’s contribution is set at 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% unless changed by the participant. 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. The Corporation contributes an amount equal to 50% of the first 8% of the participant’s basic contribution. Substantially all employer contributions to the Plan consist of the Corporation’s common stock invested in the ESOP Fund. Participants are immediately vested in all employer contributions.

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 account balance to the Stable Value Fund during the fourth quarter of each 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-Directed Brokerage Account (SDBA). 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 SDBA, 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. A participant’s initial transfer to the SDBA must be at least $3,000, and subsequent transfers must be at least $1,000. No distributions, withdrawal, or loan may be made directly from the assets in the SDBA.

Lockheed Martin Corporation Salaried Savings Plan

Notes to Financial Statements (continued)

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.

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.

ESOP Feature

There were 29,471,771 and 31,755,856 shares of the Corporation’s common stock in the ESOP Fund as of December 31, 2014 and 2013, respectively.

401(h) Arrangement

The Plan has an arrangement that qualifies under Section 401(h) of the Internal Revenue Code (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 on the accrual basis of accounting.

The Plan, through the Master Trust, invests in a Stable Value Fund which holds synthetic guaranteed investment contracts (synthetic GICs) that are fully benefit-responsive (see Note 3). The Plan is required to report fully benefit-responsive investment contracts at fair value. However, contract value is the relevant measurement attribute for 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. The Statement of Net Assets Available for Benefits presents the fair value of the fully benefit-responsive investment contracts as well as the adjustment of the fully benefit-responsive investment contracts from fair value to contract value. The Statement of Changes in Net Assets Available for Benefits is prepared using the contract value basis for fully benefit-responsive investment contracts.

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.

Lockheed Martin Corporation Salaried Savings Plan

Notes to Financial Statements (continued)

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 3 for discussion 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. Gains and losses on investments bought and sold as well as held during the year are included in interest in net investment gain from the Master Trust on the Statement of Changes in Net Assets Available for Benefits. Interest income on notes receivable from participants is recorded on the accrual basis.

Administrative Expenses

Direct administrative expenses are paid by the Master Trust and generally allocated to the Plan proportionally based on the Plan’s interest in the Master Trust’s net assets or directly if specifically related to the Plan. Certain indirect administrative expenses are paid by the Corporation and are excluded from these financial statements. Expenses paid by the Plan are shown on the Statement of Changes in Net Assets Available for Benefits.

Accounting Standards

In May 2015, the Financial Accounting Standards Board (FASB) issued new guidance that eliminates the current requirement to categorize within the fair value hierarchy investments with fair values measured at net asset value (NAV) using the practical expedient in Accounting Standards Codification (ASC) 820 “Fair Value Measurement”. The new guidance will require entities to disclose the fair values of such investments as a reconciling item between the balance sheet amounts and the amounts reported in the fair value hierarchy table. Entities will be required to continue to disclose information describing the nature and risks of the investments measured using the NAV practical expedient. The new disclosures are required for the Plan beginning on January 1, 2017. Early adoption is permitted. The new guidance only impacts footnote disclosures and will not impact the financial statements.

3.	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 participating plans included therein proportionally based on each plan’s interest in the Master Trust’s net assets. The Plan’s interest in the Master Trust’s net assets as of December 31, 2014 and 2013 was 90.68% and 90.54%, respectively.

The Plan, through the Master Trust, invests in a Stable Value Fund which holds synthetic guaranteed investment contracts (synthetic GICs) that are fully benefit-responsive and managed separate accounts. A synthetic GIC, also known as a wrap contract, is an investment contract issued by an insurance company or other financial institution paired with an underlying investment or investments, usually a portfolio of high quality fixed income securities. These investment contracts provide that realized and unrealized gains and losses on the underlying investments are amortized over the duration of the underlying investments through adjustments to the future interest-crediting rates. The primary factors affecting the future interest-crediting rates of the wrap contracts include the level of market interest rates, the amount and timing of participant contributions, transfers, and withdrawals into or out of the wrap contracts, the investment returns generated by the investments that back the wrap contracts, and the duration of the underlying investments covered by the wrap contracts. The future interest-crediting rates may not be less than 0% and are adjusted monthly or quarterly based on the yield to maturity of the underlying investments, a market value to contract value ratio of the underlying investments, and the durations of the underlying investments. The contracts are fully benefit-responsive, which guarantees that all qualified participant withdrawals will occur at contract value, which represents contributions made under the contract, plus earnings, less withdrawals and contract administrative expenses.

Lockheed Martin Corporation Salaried Savings Plan

Notes to Financial Statements (continued)

In certain circumstances the amount withdrawn from the contract would be payable at fair value rather than at contract value. These events include termination of the Plan, a material adverse change to the provisions of the Plan, a withdrawal from a wrap contract in order to switch to a different investment provider, or adoption of a successor plan that does not meet the wrap contract issuer’s underwriting criteria for issuance of a duplicate wrap contract. The Plan Administrator does not believe that the occurrence of any of these events is probable. Also, the following events would permit the contract issuers to terminate the contracts prior to their scheduled maturity date: the Plan’s loss of its qualified status, uncured material breaches of responsibilities, or material and adverse changes to the provisions of the Plan. If one of these events were to occur, the contract issuer could terminate the contract at the fair value of the underlying investments.

The average yield of the synthetic GICs based on actual earnings was approximately 1.29% and 1.49% for the years ended December 31, 2014 and 2013, respectively. The average yield of the synthetic GICs based on interest rate credited to participants was approximately 1.42% and 1.45% for the years ended December 31, 2014 and 2013, respectively.

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. 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, 2014 and 2013, there were no such advances payable to the Corporation. Occasionally, the Master Trust and 401(h) account invest in derivative financial instruments for liquidity or asset allocation purposes. At December 31, 2014 and 2013, there were no material investments in derivatives.

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 requires disclosures regarding 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 – Quoted prices in active markets for identical assets and liabilities;

•

Level 2 – Observable inputs, other than Level 1 prices, such as quoted prices for similar instruments in active markets, 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

•

Level 3 – Unobservable inputs where valuation models are supported by little or no market activity that one or more significant inputs are unobservable and require us to develop relevant assumptions.

Lockheed Martin Corporation Salaried Savings Plan

Notes to Financial Statements (continued)

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, 2014 and their appreciation (depreciation) for the year ended December 31, 2014 (in thousands):


	Level 1		Level 2		Level 3		Total			Appreciation (Depreciation)

Cash and cash equivalents	$	959,691	$	—	$	—	$	959,691		$	(315	)
Equity:
U.S. equity securities		2,571,646		—		—		2,571,646			2,077,959
U.S. equity securities - Lockheed Martin		8,040,348		—		—		8,040,348			2,620
International equity securities		305,058		—		—		305,058			(27,429	)
Commingled equity funds		1,517,292		11,272,251		—		12,789,543			768,604
Fixed income:
Corporate debt securities		—		92,502		—		92,502			(1,282	)
U.S. Government securities		—		1,240,889		—		1,240,889			5,331
Other fixed income securities		122,044		5,680,499		—		5,802,543			131,739
Alternative investments:
Wrap contract		—		—		896		896			(60	)

Total Investment Assets at Fair Value	$	13,516,079	$	18,286,141	$	896	$	31,803,116		$	2,957,167


Payables, net								(19,702	)
Adjustment from fair value to contract value for fully benefit-responsive investment contracts								(52,514	)

Total net assets							$	31,730,900

Interest and dividend income earned by the Master Trust for the year ended December 31, 2014 was $429,486,000.

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, 2013 (in thousands):


	Level 1		Level 2		Level 3		Total

Cash and cash equivalents	$	740,972	$	—	$	—	$	740,972
Equity:
U.S. equity securities		2,451,804		—		—		2,451,804
U.S. equity securities - Lockheed Martin		6,648,103		—		—		6,648,103
International equity securities		566,954		—		—		566,954
Commingled equity funds		1,738,218		10,287,343		—		12,025,561
Fixed income:
Corporate debt securities		—		99,553		—		99,553
U.S. Government securities		—		1,002,045		—		1,002,045
Other fixed income securities		74,758		5,762,505		—		5,837,263
Alternative investments:
Wrap contract		—		—		956		956

Total Investment Assets at Fair Value	$	12,220,809	$	17,151,446	$	956	$	29,373,211


Payables, net								(37,837	)
Adjustment from fair value to contract value for fully benefit-responsive investment contracts								(16,201	)

Total net assets							$	29,319,173

Lockheed Martin Corporation Salaried Savings Plan

Notes to Financial Statements (continued)

The fair value of the wrap contract of $896,000 and $956,000 at December 31, 2014 and 2013, respectively, are considered Level 3 investments due to certain unobservable inputs as described below. The change in the fair value during 2014 was due to unrealized losses.

The Master Trust recognizes transfers between levels of the fair value hierarchy as of the date of the change in circumstances that causes the transfer. During 2014, 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, 2014 (in thousands):


	Level 1		Level 2		Total

Cash and cash equivalents	$	129,260	$	—	$	129,260
Equity:
U.S. equity securities		52,680		—		52,680
International equity securities		54,517		—		54,517
Commingled equity funds		34,575		—		34,575
Fixed income:
Corporate debt securities		—		32,501		32,501
Other fixed income securities		—		60,813		60,813

Total assets	$	271,032	$	93,314	$	364,346

Receivables, net						807

Total net assets					$	365,153

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, 2013 (in thousands):


	Level 1		Level 2		Level 3		Total

Cash and cash equivalents	$	109,619	$	—	$	—	$	109,619
Equity:
U.S. equity securities		66,592		—		—		66,592
International equity securities		37,786		—		—		37,786
Commingled equity funds		21,449		—		—		21,449
Fixed income:
U.S. Government securities		—		100,984		—		100,984
Other fixed income securities		—		1,412		1,387		2,799

Total assets	$	235,446	$	102,396	$	1,387	$	339,229

Receivables, net								1,441

Total net assets							$	340,670

Lockheed Martin Corporation Salaried Savings Plan

Notes to Financial Statements (continued)

The following table presents the changes during 2014 in the fair value of 401(h) account assets categorized as Level 3 in the preceding tables (in thousands):


	Balance, beginning of year		Realized gains		Sales			Balance, end of year

Other fixed income securities	$	1,387	$	23	$	(1,410	)	$	—

The 401(h) account recognizes transfers between levels of the fair value hierarchy as of the date of the change in circumstances that causes the transfer. During 2014, 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.

Commingled equity funds are investment vehicles valued using the Net Asset Value (NAV) provided by the fund managers. 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). These funds may be redeemed on a daily or monthly basis, depending upon notification requirements, liquidity, and other matters.

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 GICs are invested in fixed income securities and are categorized as Level 2 as they are valued at representative quoted market prices. The fair values of the wrap contracts associated with the synthetic GICs are categorized as Level 3 and are determined by discounting the related cash flows based on current yields of similar instruments with comparable durations considering the credit-worthiness of the issuer.

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.

4.	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 held 41,721,605 and 44,675,225 shares of the Corporation’s common stock as of December 31, 2014 and 2013, respectively. Dividends earned by the Master Trust on the Corporation’s common stock were $234,578,000 for the year ended December 31, 2014. 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.

Lockheed Martin Corporation Salaried Savings Plan

Notes to Financial Statements (continued)

Also, the Master Trust owed the Corporation $1,100,000 and $1,000,000 as of December 31, 2014 and 2013, respectively, for certain expenses paid by the Corporation in providing services to the Plan.

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 401(h) account invests in common stock of the ING Groep NV, which was the parent company of the recordkeeper until March 3, 2015. 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.

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.

5.	Income Tax Status

The Internal Revenue Service (IRS) has determined and informed the Corporation by letter dated October 17, 2013, that the Plan is designed in accordance with applicable sections of the IRC and, therefore, the related trust is exempt from taxation. The Plan has been amended since issuance of the determination letter. However, the Plan Administrator and the Corporation’s counsel believe that the current design and operations of the Plan are in compliance with the applicable provisions of the IRC.

GAAP requires plan management to evaluate tax positions taken by the Plan to determine whether the Plan has taken any uncertain positions that more likely than not would not 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, 2014, there are no uncertain positions taken or expected to be taken that would require recognition of a liability or asset or disclosure in the financial statements. The Plan is subject to routine audits by taxing jurisdictions, but no tax audits are in progress. The Plan Administrator believes the Plan is no longer subject to income tax examinations for years prior to 2011.

6.	Reconciliation of Financial Statements to Form 5500

The following is a reconciliation of the net assets available for benefits as of December 31, 2014 and 2013 per the financial statements to the Form 5500 (in thousands):


	December 31,
	2014		2013

Net assets available for benefits per the financial statements	$	29,022,712	$	26,793,825
Add: Net assets held in 401(h) account per Form 5500		365,153		340,670
Add: Adjustment from fair value to contract value for fully benefit-responsive investment contracts		47,619		14,670

Net assets available for benefits per the Form 5500	$	29,435,484	$	27,149,165

The net assets of the 401(h) account 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.

Lockheed Martin Corporation Salaried Savings Plan

Notes to Financial Statements (continued)

The following is a reconciliation of the changes in net assets available for benefits for the year ended December 31, 2014, per the financial statements to the Form 5500 (in thousands):


	Amounts per Financial Statements		401(h) account			Amounts per Form 5500

Interest and dividend income	$	—	$	6,192		$	6,192
Net realized and unrealized loss		—		18,648			18,648
Administrative expense		—		(357	)		(357	)


	Amounts per Financial Statements			Differences			Amounts per Form 5500

Interest in net investment gain from participation in Lockheed Martin Corporation Defined Contribution Plans Master Trust	$	3,122,992		$	(26,470	)	$	3,149,462
Administrative expenses		(34,240	)		31,501			(2,739	)
Interest income on notes receivable from participants		10,352			(10,352	)		—
Adjustment from fair value to contract value for fully benefit-responsive investment contracts		—			(47,619	)		47,619

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. The Plan’s interest in the net investment gain in the Master Trust reported in the financial statements also differed from the related amount per the Form 5500 as a result of the adjustment from fair value to contract value for fully benefit-responsive investment contracts.

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)***

(in thousands, excluding shares or units)

December 31, 2014


(a)	(b) Identity of Issue, Borrower, Lessor, or Similar Party and Description	(c) Number of Shares or Units		(d) Cost		(e) Current Value
	401(h) account **
	Corporate Debt Securities - Preferred
	Alabama Power Co 4.15% Due 08-15-2044		215,000	$	213	$	226
	America Movil Sab De 4.375% Due 07-16-2042		200,000		178		192
	Amgen Inc 5.375% Due 05-15-2043		375,000		405		436
	Anheuser-Busch 2.625% Due 01-17-2023		425,000		400		413
	Apache Corp 4.25% Due 01-15-2044		270,000		251		236
	Bank of America Corp 4.1% Due 07-24-2023		315,000		320		332
	Berkshire Hathaway 4.4% Due 05-15-2042		295,000		290		317
	BHP Billiton Finance 5% Due 09-30-2043		100,000		106		113
	Centerpoint Energy 4.5% Due 04-01-2044		15,000		15		17
	Cisco System Inc 5.5% Due 01-15-2040		100,000		115		122
	Citigroup Inc 3.75% Due 06-16-2024		545,000		544		557
	Consolidated Edison Co of New York 3.95% Due 03-01-2043		200,000		184		199
	Corning Inc 4.75% Due 03-15-2042		75,000		77		80
	DTE Electric Co 4.3% Due 07-01-2044		185,000		185		201
	General Electric Co 4.125% Due 10-09-2042		765,000		738		792
	Goldman Sachs 4.8% Due 07-08-2044		440,000		438		471
	JP Morgan Chase & Co 3.625% Due 05-13-2024		435,000		433		445
	Lowe’s Companies Inc 4.65% Due 04-15-2042		200,000		204		222
	Metlife Inc Sr Nt Ser D Step Up 09-15-2023 09-11-2015		190,000		203		207
	Morgan Stanley 3.7% Due 10-23-2024		258,000		258		262
	Nbcuniversal Media 4.45% Due 01-15-2043		775,000		752		821
	Northern States Power Co 4.125% Due 05-15-2044		95,000		95		100
	Northwestern Mutual Life 6.063% Due 03-30-2040		235,000		292		304
	Oracle Corp 4.5% Due 07-08-2044		450,000		454		489
	Pepsico Inc 3.6% Due 08-13-2042		110,000		99		103
	Pepsico Inc 4.25% Due 10-22-2044		75,000		75		78
	Philip Morris International 4.125% Due 03-04-2043		150,000		140		147
	PVTPL Guardian Life Insurance Co of America 4.875% Due 06-19-2064		225,000		226		240
	PVTPL Medtronic Inc 4.625% Due 03-15-2045		131,000		131		142
	PVTPL Sabmiller Holdings Inc 4.95% Due 01-15-2042		200,000		206		225
	PVTPL Teachers Insurance 4.9% Due 09-15-2044		340,000		342		379
	Rio Tinto Finance USA 4.125% Due 08-21-2042		85,000		77		83
	Southern California Edison Co 4.65% Due 10-01-2043		275,000		290		311
	Target Corp 4% Due 07-01-2042		265,000		246		269
	Transcanada 5% Due 10-16-2043		150,000		159		157
	Union Pacific Corp 4.3% Due 06-15-2042		250,000		243		266
	Unitedhealth Group 3.95% Due 10-15-2042		250,000		227		248
	United Technologies 4.5% Due 06-01-2042		325,000		332		354
	Vodafone Group PLC 4.375% Due 02-19-2043		265,000		240		258
	Wal-Mart Stores 4.3% Due 04-22-2044		330,000		329		360
	Wellpoint Inc 4.625% Due 05-15-2042		225,000		218		236
	Wells Fargo & Co New Medium Term Notes 4.65% Due 11-04-2044		201,000		201		207

	Total Corporate Debt Securities - Preferred			$	10,931	$	11,617

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)***

(in thousands, excluding shares or units)

December 31, 2014


(a)	(b) Identity of Issue, Borrower, Lessor, or Similar Party and Description	(c) Number of Shares or Units		(d) Cost		(e) Current Value

	Corporate Debt Securities –Other
	21st Century Fox 4.75% Due 09-15-2044		525,000	$	527	$	574
	Actavis Funding 4.85% Due 06-15-2044		110,000		111		112
	Alleghany Corp Del 4.9% Due 09-15-2044		150,000		149		157
	Altria Group Inc 5.375% Bonds Due 01-31-2044		225,000		238		256
	Antero Resources Finance Corp 5.375% Due 11-01-2021		161,000		165		156
	Appalachian Power Co 4.4% Due 05-15-2044		310,000		308		326
	AT&T Inc 4.35% Due 06-15-2045		1,235,000		1,095		1,164
	Barrick Gold Corp 5.25% Due 04-01-2042		135,000		129		125
	Barrick North America Finance 5.75% Due 05-01-2043		65,000		64		65
	Becton Dickinson & 4.685% Due 12-15-2044		30,000		30		32
	Berkshire Hathaway 4.5% Due 02-01-2045		210,000		212		220
	Burlington Northn Santa 4.55% Due 09-01-2044		5,000		5		5
	Canadian Natural Resources LTD 3.8% Due 04-15-2024		122,000		125		120
	Canadian Natural Resources LTD 6.25% Due 03-15-2038		175,000		210		195
	Cenovus Energy Inc 5.2% Due 09-15-2043		225,000		237		217
	Chesapeake Energy Corp 7.25% Due 12-15-2018		65,000		74		71
	Cimarex Energy Co 4.375% Due 06-01-2024		29,000		29		28
	Cimarex Energy Co 5.875% Due 05-01-2022		125,000		138		130
	CMS Energy Corp 4.7% Due 03-31-2043		350,000		349		373
	Conagra Foods Inc 4.65% Due 01-25-2043		270,000		264		282
	Concho Resources Inc 5.0% Due 04-01-2023		140,000		145		141
	Consol Energy Inc 8.25% Due 04-01-2020		85,000		93		88
	Continental Resources Inc 4.9% Due 06-01-2044		245,000		240		212
	Continental Resources Inc 5.0% Due 09-15-2022		75,000		79		73
	CVS Caremark Corp 5.3% Due 12-05-2043		175,000		194		209
	Devon Energy Corp 4.75% Due 05-15-2042		228,000		229		230
	Dominion Resources Inc 4.05% Due 09-15-2042		675,000		609		658
	Dow Chemical Co 4.375% Due 11-15-2042		275,000		255		266
	Dow Chemical Co 4.625% Due 10-01-2044		80,000		79		81
	Duke Energy Corp 3.75% Due 04-15-2024		225,000		225		234
	El Paso Pipelines 4.7% Due 11-01-2042		225,000		202		203
	Embarq Corp 7.995% Due 06-01-2036		40,000		43		45
	Encana Corp 5.15% Due 11-15-2041		275,000		284		252
	Energy Transfer 5.15% Due 02-01-2043		250,000		244		247
	Enterprise Products 5.1% Due 02-15-2045		450,000		468		484
	Fedex Corp Bond 5.1% Due 01-15-2044		166,000		173		192
	Hartford Financial Services 4.3% Due 04-15-2043		250,000		234		256
	Hess Corp 5.6% Due 02-15-2041		175,000		193		188
	Kinder Morgan Energy Partners LP 5.0% Due 03-01-2043		630,000		585		598
	Kraft Foods Group 5% Due 06-04-2042		225,000		237		248
	Kroger Co 5.0% Due 04-15-2042		125,000		127		136
	L-3 Communications 3.95% Due 05-28-2024		170,000		169		171
	LYB International Finance BV 4.875% Due 03-15-2044		205,000		210		211

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)***

(in thousands, excluding shares or units)

December 31, 2014


(a)	(b) Identity of Issue, Borrower, Lessor, or Similar Party and Description	(c) Number of Shares or Units		(d) Cost		(e) Current Value

	Corporate Debt Securities –Other (Continued)
	Marathon Pete Corp 4.75% Due 09-15-2044		350,000	$	345	$	331
	Markwest Energy 6.75% Due 11-01-2020		10,000		11		10
	Midamerican Energy 5.15% Due 11-15-2043		431,250		463		488
	Molson Coors 5.0% Due 05-01-2042		295,000		303		320
	Mondelez International Inc 6.5% Due 02-09-2040		50,000		63		67
	Newmont Mining Corp 4.875% Due 03-15-2042		170,000		141		148
	Nisource Finance Corp 5.25% Due 02-15-2043		200,000		206		229
	Noble Energy Inc 5.05% Due 11-15-2044		75,000		74		74
	Noble Energy Inc 5.25% Due 11-15-2043		300,000		316		305
	Noble Holdings International 5.25% Due 03-15-2042		375,000		369		296
	Oasis Pete Inc New 7.25% Due 02-01-2019		34,000		36		32
	Orange SA 5.5% Due 02-06-2044		150,000		158		176
	Pacific Gas & Electric Co 4.3% Due 03-15-2045		10,000		10		10
	Pacific Gas & Electric Co 4.75% Due 02-15-2044		450,000		456		495
	Petrobras Global 5.625% Due 05-20-2043		95,000		85		77
	Phillips 66 4.875% Due 11-15-2044		105,000		103		108
	Phillips 66 5.875% Due 05-01-2042		200,000		233		230
	PPL Capital Funding INC 3.95% Due 03-15-2024		450,000		452		469
	PSEG Power LLC 4.3% Due 11-15-2023		105,000		109		110
	PVTPL BAE System Holdings Inc Note 3.8% Due 10-07-2024		125,000		125		128
	PVTPL Canadian Oil Sands LTD Note 6.0% Due 04-01-2042		205,000		224		185
	PVTPL Heineken NV Note 4.0% Due 10-01-2042		375,000		338		365
	PVTPL Huntington Ingalls Industries Inc Note 5.0% Due 12-15-2021/12-02-2014		25,000		25		25
	PVTPL Liberty Mutual Group Inc Note 4.85% Due 08-01-2044		235,000		235		239
	PVTPLErac USA Finance LLC Note 5.625% Due 03-15-2042		150,000		168		175
	Range Resources Corp 5.75% Due 06-01-2021		79,000		85		82
	Rogers Communications Inc 4.5% Due 03-15-2043		365,000		348		367
	Scripps Networks 3.9% Due 11-15-2024		453,000		451		461
	Sempra Energy 3.55% Due 06-15-2024		95,000		95		96
	Sempra Energy 4.05% Notes Due 12-01-2023		500,000		513		529
	Teck Resources LTD 5.2% Due 03-01-2042		195,000		177		159
	Thomson Reuters 4.5% Due 05-23-2043		325,000		301		325
	Time Warner Cable 4.5% Due 09-15-2042		430,000		395		442
	Time Warner Inc 6.25% Due 03-29-2041		425,000		501		528
	Transcontinental Gas Pipe Line Co LLC 4.45% Due 08-01-2042		55,000		52		52
	Vale SA 5.625% Due 09-11-2042		300,000		283		279
	Valero Energy Corp 6.625% Due 06-15-2037		125,000		151		148
	Verizon 3.85% Due 11-01-2042		1,840,000		1,629		1,640
	Weatherford International LTD Bermuda 5.95% Due 04-15-2042		100,000		109		85
	Whiting Pete Corp 5.75% Due 03-15-2021		109,000		116		101
	Xcel Energy Inc 4.8% Due 09-15-2041		100,000		104		112
	Yum Brands Inc 5.35% Due 11-01-2043		325,000		344		355

	Total Corporate Debt Securities - Other			$	20,478	$	20,884

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)***

(in thousands, excluding shares or units)

December 31, 2014


(a)	(b) Identity of Issue, Borrower, Lessor, or Similar Party and Description	(c) Number of Shares or Units		(d) Cost		(e) Current Value

	Common Stock
	Abb LTD		3,232	$	62	$	69
	Actavis PLC		2,700		539		695
	Adidas AG		1,755		155		122
	Adobe System Inc		10,111		640		735
	Aetna Inc		4,900		336		435
	AGL Energy		7,321		103		80
	Agrium Inc		4,761		409		452
	AIA Group LTD		73,555		313		409
	Aisin Seiki Co		800		31		29
	Akzo Nobel NV		726		47		51
	Alcatel-Lucent		105,608		417		380
	Alimentation Couch		2,249		78		95
	Allergan Inc		4,724		533		1,004
	Allianz SE		3,371		535		560
	Amazon.com Inc		934		275		290
	Amcor LTD		6,699		67		74
	American Express Co		4,200		248		391
	American International Group Inc		9,400		370		526
	Ameriprise Financial Inc		4,500		332		595
	Anadarko Petro Corp		2,400		215		198
	Analog Devices Inc		12,111		483		672
	Anglo American		1,195		28		22
	Anheuser Busch Inbev		14,606		1,195		1,649
	Apple Inc		8,838		536		976
	Asahi Group Holdings LTD		2,000		50		62
	Asahi Kasei Corp		4,000		32		37
	Asciano LTD		8,236		39		41
	ASML Holding NV		3,463		263		375
	Assa Abloy		860		43		46
	Astellas Pharma		9,100		102		128
	Astrazeneca		3,614		195		257
	ATCO LTD		3,370		143		139
	Aurizon Holdings LTD		25,501		107		96
	Australia and New Zealand Banking Group		16,946		472		445
	Avago Technologies LTD		7,100		371		714
	B/E Aerospace Inc		11,456		628		665
	Baidu Inc		1,550		269		353
	Baker Hughes Inc		3,300		236		185
	Balfour Beatty		3,134		11		10
	Banco Bradesco SA		24,469		335		327

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)***

(in thousands, excluding shares or units)

December 31, 2014


(a)	(b) Identity of Issue, Borrower, Lessor, or Similar Party and Description	(c) Number of Shares or Units		(d) Cost		(e) Current Value

	Common Stock (continued)
	Banco Santander		28,418	$	249	$	241
	Bank of America Corp		37,100		454		664
	Bank of Nova Scotia		1,177		66		67
	Bank of Yokohama		2,000		9		11
	Barclays PLC		70,168		297		266
	Barrick Gold Corp		6,360		153		69
	BASF		1,994		202		169
	Bayer AG		8,201		894		1,121
	Bayerische Motoren Werke AG		1,068		114		116
	BBVA		15,491		184		147
	BCE Inc		2,690		113		124
	Belgacom SA		1,534		43		56
	Berkshire Hathaway Inc		8,761		692		1,315
	BG Group PLC		38,323		772		517
	BHP Billiton LTD		6,697		228		161
	BHP Billiton PLC		20,626		667		447
	Blackrock Inc		1,262		286		451
	BNP Paribas		8,124		517		484
	Bombardier Inc		7,745		29		28
	BP PLC		121,756		1,197		974
	Bridgestone Corp		2,600		86		91
	British American Tobacco		6,232		321		340
	BT Group		20,369		110		128
	Burberry Group		1,890		47		48
	Canadian Oil Sands		2,747		52		25
	Canon Inc		14,900		526		477
	Celestica Inc		2,902		32		34
	Cenovus Energy Inc		2,493		65		52
	Central Japan Railway		200		27		30
	Centrica		25,056		139		109
	Chubu Electric Power Co Inc		4,300		61		51
	Cie De St-Gobain		5,300		297		226
	Cigna Corp		5,800		471		597
	Citigroup Inc		13,793		595		746
	Citrix System Inc		3,900		227		249
	Clariant AG		15,600		299		262
	CLP Holdings LTD		13,000		106		113
	CMS Energy Corp		10,300		339		358
	Coca-Cola Amatil		3,979		31		30
	Comfortdelgro Corp LTD		213,245		419		418

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)***

(in thousands, excluding shares or units)

December 31, 2014


(a)	(b) Identity of Issue, Borrower, Lessor, or Similar Party and Description	(c) Number of Shares or Units		(d) Cost		(e) Current Value

	Common Stock (continued)
	Commonwealth Bank of Australia		2,476	$	153	$	174
	Compass Group PLC		2,621		32		45
	Core Laboratories NV		3,591		534		432
	Credit Agricole SA		3,221		47		42
	Credit Suisse AG		14,021		429		354
	CSL LTD		1,993		130		141
	CSX Corp		15,700		449		569
	CTT Correios De Portugal SA		36,800		383		357
	CVS Health Corp		7,300		415		703
	Daiichi Sankyo		4,900		85		69
	Daimler AG		1,809		148		151
	Daiwa Securities Group Inc		56,700		518		448
	DBS Group Holdings		29,137		373		453
	Denso Corp		1,200		57		57
	Deutsche Bank AG		5,973		253		181
	Deutsche Post AG		5,605		166		183
	Deutsche Telekom AG		15,458		217		248
	Diageo PLC		6,472		176		187
	Discover Financial Service		5,400		344		354
	DNB ASA		17,800		277		263
	Domtar Corp		684		25		28
	Don Quijote Holdings Co LTD		5,700		272		397
	Dufry AG		1,906		303		286
	E.ON SE		7,769		147		133
	East Japan Railway Co		1,800		135		137
	Ebara Corp		65,600		399		272
	Ecolab Inc		8,795		895		919
	EMC Corp		14,408		356		428
	Empire Co		1,804		124		136
	Enel S.p.A		8,640		38		39
	Eni S.p.A		7,898		334		224
	Ericsson		5,232		62		63
	Exxon Mobil Corp		18,252		1,513		1,687
	F5 Networks Inc		4,500		507		587
	Familymart Co		1,300		55		49
	Fanuc Corp		400		70		67
	Ford Motor Co		7,900		92		122
	Fraport (Frankfurt Airport Services)		566		37		33

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)***

(in thousands, excluding shares or units)

December 31, 2014


(a)	(b) Identity of Issue, Borrower, Lessor, or Similar Party and Description	(c) Number of Shares or Units		(d) Cost		(e) Current Value

	Common Stock (continued)
	Fresenius SE&KGaA		8,592	$	360	$	449
	Fuji Heavy Industries		1,000		28		36
	Fujifilm Holdings Corp		12,500		320		386
	GDF Suez		1,250		34		29
	General Dynamics Corp		1,300		88		179
	General Electric Co		5,200		122		131
	General Mills Inc		2,600		133		139
	Gildan Activewear		5,531		321		314
	Gilead Sciences Inc		4,800		408		452
	Glaxosmithkline PLC		19,670		485		422
	Glencore PLC		25,941		132		121
	Google Inc		1,428		584		754
	Grifols SA		10,705		392		364
	Hanesbrands Inc		3,200		184		357
	Harley Davidson		3,100		200		204
	Hartford Financial Service Group Inc		15,600		555		650
	Heineken NV		881		56		63
	Hennes & Mauritz		2,686		97		112
	Hermes International		30		10		11
	Hewlett Packard Co		22,600		547		907
	Hitachi		17,463		119		131
	Honda Motor Co		3,900		145		115
	Honeywell International Inc		9,689		578		968
	Hong Kong & China Gas		38,900		85		89
	HSBC Holdings		48,087		491		456
	Huntington Bancshares Inc		40,600		376		427
	IAMGOLD Corp		10,241		88		28
	Iberdrola SA		18,888		111		128
	Imperial Tobacco		5,637		217		249
	Inditex		3,264		88		94
	Indivior PLC		2,272		4		5
	Industrial & Commercial Bank China		366,100		233		267
	Infineon Technologies AG		30,684		297		328
*	ING Groep NV		7,716		82		101
	Inpex Corp		4,700		62		53
	INS Australia		18,202		100		93
	Intact Financial Corp		1,167		69		85
	Intuit		7,121		450		657
	Investor AB		1,526		36		56
	Itochu Corp		1,600		20		17

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)***

(in thousands, excluding shares or units)

December 31, 2014


(a)	(b) Identity of Issue, Borrower, Lessor, or Similar Party and Description	(c) Number of Shares or Units		(d) Cost		(e) Current Value

	Common Stock (continued)
	ITV		107,248	$	271	$	360
	Japan Tobacco Inc		16,800		518		466
	Jardine Matheson Holdings		6,400		360		390
	Johnson & Johnson		3,529		215		369
	JP Morgan Chase & Co		13,900		607		870
	Julius Baer Group		1,115		42		51
	Kansai Electric Power Co		4,400		57		42
	Kao Corp		700		23		28
	KBC Groep NV		9,339		455		525
	KDDI Corp		2,500		133		159
	Keyence Corp		100		43		45
	Kinross Gold Corp		22,308		102		63
	Kion Group AG		6,300		282		242
	Kirin Holdings Co		4,000		57		50
	KLX Inc		5,728		237		236
	Komatsu		1,600		37		36
	Koninklijke Ahold		3,648		64		65
	Koninklijke Dsm		19		1		1
	Koninklijke Philip		6,440		175		188
	Kroger Co		11,100		644		713
	Kubota Corp		24,000		294		352
	L-3 Communications Holdings Corp		2,400		250		303
	Las Vegas Sands Corp		4,600		318		268
	Laurentian Bank Canada		964		42		42
	Lawson Inc		1,100		82		67
	Liberty Global PLC		15,554		621		751
	Linde AG		182		36		34
	Lloyds Banking Group		512,837		575		606
	London Stock Exchange Group		2,880		68		100
	LVMH Moet Hennessy Louis Vuitton SA		623		95		100
	Lyondellbasell Industries NV		2,900		210		230
	Magna International Inc		626		61		68
	Mapfre SA		12,191		56		42
	Markel Corp Holding Co		1,231		547		841
	Marubeni Corp		4,000		31		24
	Mazda Motor Corp		1,400		33		34
	Mediaset		87,800		406		365
	Merck KGAA		1,728		130		164
	Mettler-Toledo International Inc		3,115		734		942
	Michelin (CGDE)		4,027		403		367

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)***

(in thousands, excluding shares or units)

December 31, 2014


(a)	(b) Identity of Issue, Borrower, Lessor, or Similar Party and Description	(c) Number of Shares or Units		(d) Cost		(e) Current Value

	Common Stock (continued)
	Microsoft Corp		8,700	$	367	$	404
	Mitsubishi Chemical		7,000		33		34
	Mitsubishi Corp		6,100		123		113
	Mitsubishi Electric Corp		7,000		87		84
	Mitsubishi Heavy Industries		2,014		12		11
	Mitsubishi UFJ Financial Group		28,699		156		159
	Mitsui & Co LTD		1,200		18		16
	Mitsui Fudosan Co LTD		3,000		96		81
	Mizuho Financial Group		87,500		165		148
	Mondelez International Inc		21,188		509		770
	Monsanto Co		1,100		128		131
	Morgan Stanley		8,000		219		310
	Muenchener Rueckve		515		107		103
	National Australia Bank		3,230		94		89
	National Grid		11,221		137		161
	Natural Resources		2,515		91		78
	Nestle SA		7,936		507		583
	Nextera Energy Inc		5,500		415		585
	Nippon Telegraph & Telephone Corp		3,400		188		176
	Nissan Motor Co LTD		6,500		67		57
	Nordea Bank AB		33,952		455		394
	Novartis AG		14,729		1,050		1,369
	Novo-Nordisk AS		6,405		227		271
	NTT Docomo Inc		8,900		141		131
	O Reilly Automotive Inc		4,309		648		830
	Oil Search LTD		9,942		75		64
	Omron Corp		8,700		316		395
	Open Text Co		4,547		248		265
	Oracle Corp		26,823		733		1,206
	Orix Corp		6,200		91		79
	Osaka Gas Co LTD		23,000		94		87
	OSRAM Licht AG		102		3		4
	Oversea-Chinese Banking Corp		6,000		48		47
	Paccar Inc		4,700		293		320
	Pan Amern Silver Corp		512		10		5
	Partners Group Holding		208		46		61
	Pearson		6,525		117		121
	Pepsico Inc		4,529		292		428
	Perrigo Co LTD		1,500		241		251

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)***

(in thousands, excluding shares or units)

December 31, 2014


(a)	(b) Identity of Issue, Borrower, Lessor, or Similar Party and Description	(c) Number of Shares or Units		(d) Cost		(e) Current Value

	Common Stock (continued)
	Pfizer Inc		6,800	$	166	$	212
	Potash Corp Saskatchewan Inc		7,500		292		265
	Praxair Inc		3,854		322		499
	Precision Castparts Corp		2,044		469		492
	Procter & Gamble		6,528		393		595
	Prudential		20,779		367		483
	Prudential Financial Inc		5,400		319		489
	Qualcomm Inc		9,286		391		690
	Reckitt Benckiser Group PLC		2,272		156		185
	Reed Elsevier		1,563		24		27
	Renault SA		5,963		509		437
	Rentokil Initial		179,300		355		339
	Resona Holdings		12,100		62		62
	Rexel		16,093		403		289
	Richemont		5,809		462		519
	Rio Tinto LTD		13,498		781		632
	Roche Holdings AG Genusscheine		2,406		548		654
	Rogers Communications Inc		1,421		58		55
	Rolls Royce Holdings		2,700		49		37
	Ross Stores Inc		1,800		88		170
	Royal Bank of Canada		438		26		30
	Royal Dutch Shell		17,959		625		615
	RWE AG		11,207		436		348
	Ryohin Keikaku Co		2,219		195		275
	Sabmiller PLC		2,975		149		156
	Sainsbury PLC		4,321		27		17
	Sampo PLC		560		28		26
	Samsung Electronic		406		230		246
	Sandisk Corp		4,900		447		480
	Sanofi		8,805		803		806
	Santen Pharmceutical Co		500		19		27
	SAP AG		6,355		452		448
	Schlumberger LTD		8,237		617		704
	Sensata Technologies Holdings		12,327		469		646
	Seven & I Holdings Co LTD		4,100		146		149
	SGS SA		183		376		377
	Shaw Communication		3,555		86		96
	Shin-Etsu Chemical		1,300		74		85
	Shionogi & Co LTD		1,800		39		47
	Shire PLC		2,081		98		147
	Shiseido Co LTD		3,100		50		44

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)***

(in thousands, excluding shares or units)

December 31, 2014


(a)	(b) Identity of Issue, Borrower, Lessor, or Similar Party and Description	(c) Number of Shares or Units		(d) Cost		(e) Current Value

	Common Stock (continued)
	Siemens AG		2,231	$	250	$	253
	Singapore Telecommunications		41,000		112		121
	SJM Holdings LTD		19,690		31		31
	Sky PLC		5,040		59		71
	Skyworks Solutions Inc Com		5,900		331		429
	SMC Corp		1,500		333		400
	Smith & Nephew		2,933		33		54
	Societe Generale		1,100		55		47
	Softbank Corp		7,891		517		475
	SPX Corp		3,100		270		266
	SSE PLC		4,973		117		126
	St. Jude Medical Inc		7,989		302		520
	Standard Chartered PLC		4,558		101		68
	Starbucks Corp		7,263		418		596
	Statoil ASA		11,997		302		210
	Sumitomo Corp		5,700		74		59
	Sumitomo Mitsui Financial Group		19,999		850		730
	Sumitomo Mitsui Trust Holdings Inc		26,840		112		104
	Suncor Energy Inc		2,833		94		90
	Svenska Cellulosa		2,406		63		52
	Svenska Handelsbkn		2,101		96		98
	Swatch Group		103		65		46
	Swedbank AG		697		16		17
	Swisscom AG		152		81		80
	Syngenta		1,082		363		348
	Takeda Pharmaceutical Co		3,700		173		154
	Tele2 AB		25,700		315		312
	Telefonica SA		14,957		230		216
	Telenor ASA		3,098		63		63
	Teliasonera AB		11,096		85		71
	Telstra Corp LTD		25,361		118		124
	Telus Corp		3,678		123		133
	Tesco		30,122		176		89
	Teva Pharmaceutical Industries		11,263		553		648
	Thermo Fisher Corp		2,924		252		366
	Thomas Cook Group		80,666		182		161
	TJX Companies Inc		11,979		713		822
	Tokio Marine Holdings Inc		16,600		485		545
	Tokyo Gas Co LTD		23,000		118		125
	Toll Holdings LTD		9,454		51		46

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)***

(in thousands, excluding shares or units)

December 31, 2014


(a)	(b) Identity of Issue, Borrower, Lessor, or Similar Party and Description	(c) Number of Shares or Units		(d) Cost		(e) Current Value

	Common Stock (continued)
	Toray Industries Inc		6,000	$	41	$	48
	Toshiba Corp		12,000		50		51
	Total SA		13,243		765		681
	Toyo Suisan Kaisha		1,000		31		33
	Toyota Industries		800		37		41
	Toyota Motor Corp		12,800		698		807
	Transcanada Corp		2,443		108		120
	Transdigm Group Inc		4,309		644		846
	Treasury Wine Estates		71,400		318		279
	Triumph Group Inc		3,500		255		235
	Tullow Oil		3,451		50		22
	Tyson Foods Inc (Delaware)		23,400		800		938
	UBS Group		11,561		210		199
	Unicredit SPA		58,200		421		376
	Unilever NV		6,596		243		261
	Unilever PLC		14,406		511		590
	Union Pacific Corp		5,082		253		605
	United Continental Holdings Inc		6,600		420		441
	United Oversea Bank		3,000		54		56
	Universal Health Services Inc		3,700		233		412
	V F Corp		4,300		255		322
	Visa Inc		3,187		392		836
	Vodafone Group		261,856		980		909
	Volvo AB		3,384		48		37
	Walt Disney Co		6,000		255		565
	Wells Fargo & Co		12,700		428		696
	Wesfarmers LTD		1,252		45		43
	Western Digital Corp		2,800		255		310
	Westpac Banking Corp		3,067		81		83
	Wirecard AG		9,384		302		414
	Wm Morrison Supermarkets		42,226		160		121
	Woodside Petroleum		1,549		47		48
	Woolworths LTD		2,145		63		54
	WPP PLC		21,000		324		440
	Xilinx Inc		6,600		272		286
	Yandex NV		4,100		134		74
	Zimmer Holdings Inc		3,900		399		442
	Zurich Insurance Group AG		208		50		65

	Total Common Stock			$	90,798	$	103,518

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)***

(in thousands, excluding shares or units)

December 31, 2014


(a)	(b) Identity of Issue, Borrower, Lessor, or Similar Party and Description	(c) Number of Shares or Units		(d) Cost		(e) Current Value

	Preferred Stock
	Henkel AG & Co		499	$	52	$	54
	Volkswagen AG		2,376		546		531

	Total Preferred Stock			$	598	$	585

	Value of Interest in Registered Investment Companies
	Blackrock Strategic Income Opportunities Portfolio		2,122,922	$	21,798	$	21,463
	Ishares Core MSCI Emerging Markets ETF Fund		141,200		7,300		6,641
	Ishares MSCI Emerging Markets Index Fund ETF		175,000		6,912		6,876
	Ishares MSCI Germany ETF		4,115		130		113
	Ishares MSCI Janpan ETF		4,517		55		51
	Ishares MSCI Switzerland Capped ETF		6,655		217		211
	Ishares North American Natural Resources ETF		35,314		1,514		1,353
	Ishares S&P TSX 60 Unit		19,379		367		359
	Ishares S&P TSX Unit		8,903		127		123
	Ishares U.S. Home Construction ETF Fund		70,017		1,773		1,812
	Ishares U.S. Real Estate ETF Dow Jones U S Real Estate Index Fund		15,167		1,016		1,165
	Market Vectors Agribusiness ETF		39,845		2,066		2,093
	Neuberger Berman Income Funds New Highincome Bond Fund		969,657		9,200		8,678
*	Northern Institutional Funds Government Portfolio		111,785,372		111,785		111,785
	Select Sector SPDR Fund		10,592		483		515
	Select Sector SPDR Industrial		19,777		1,010		1,119
	SPDR S&P Metals & Mining ETF		14,338		578		443
	SPDR S&P Oil & Gas Exploration and Production ETF		30,554		2,097		1,462
	Van Eck International Investor Gold		104		3		1
	Vanguard FTSE Developed Markets ETF		270,300		8,779		10,239

	Total Value of Interest in Registered Investment Companies			$	177,210	$	176,502

	Common Collective Trust
*	Northern Trust Collective Tips Index Fund - Non Lending		134,026	$	17,548	$	17,827
*	Northern Trust Collective Aggregate Bond Index Fund-Non Lending		97,618		12,336		12,844

	Total Value of Interest in Registered Investment Companies			$	29,884	$	30,671

	Cash and Cash Equivalents		17,516,685	$	17,517	$	17,517

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)***

(in thousands, excluding shares or units)

December 31, 2014


	(b) Identity of Issue, Borrower, Lessor, or Similar Party and Description	(c) Number of Shares or Units		(d) Cost		(e) Current Value
(a)		(c) Number of Shares or Units		(d) Cost		(e) Current Value

	Other Investments
	American Tower Corp		18,296	$	1,157	$	1,809
	Cominar Real Estate Trust Units		476		7		8
	Extra Space Storage Inc		6,500		295		381
	Goodman Group (Stapled Units)		10,907		50		51
	Mirvac Group Stapled Securities		34,509		51		50
	Simon Property Group Inc		2,300		264		419
	SL Green Realty Corp		2,400		228		286
	Stockland Stapled Units		11,155		39		37
	Westfield Group Stapled Units		7,109		46		52

	Total Other Investments			$	2,137	$	3,093


	Total 401(h) account**			$	349,553	$	364,387


*	Notes receivable from participants (Interest rates ranging from 3.25% to 10.50%; varying maturities)			$	—	$	237,970

*	Party-in-interest for which a statutory exemption exists.

**	The 401(h) account’s net assets include interest and dividends receivable of $807,000 and pending trades receivable of $10,158,000 and payable of $10,199,000.

***	This 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.

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 by the undersigned hereunto duly authorized.

EXHIBIT INDEX


Exhibit Number		Description

23		Consent of Independent Registered Public Accounting Firm