Annual Return/Report of Employee Benefit Plan

Transcription

1 Form 5500 Department of the Treasury Internal Revenue Servie Department of Labor Employee Benefits Seurity Administration Pension Benefit Guaranty Corporation Annual Return/Report of Employee Benefit Plan This form is required to be filed for employee benefit plans under setions 104 and 4065 of the Employee Retirement Inome Seurity At of 1974 (ERISA) and setions 6057(b) and 6058(a) of the Internal Revenue Code (the Code). Complete all entries in aordane with the instrutions to the Form OMB Nos This Form is Open to Publi Inspetion Part I Annual Report Identifiation Information For alendar plan year 2016 or fisal plan year beginning 01/01/2016 and ending 12/31/2016 A X a multiemployer plan X a multiple-employer plan (Filers heking this box must attah a list of This return/report is for: partiipating employer information in aordane with the form instrutions.) X a single-employer plan X a DFE (speify) _C_ B This return/report is: X the first return/report X the final return/report X an amended return/report X a short plan year return/report (less than 12 months) C If the plan is a olletively-bargained plan, hek here X D Chek box if filing under: X Form 5558 X automati extension X the DFVC program X speial extension (enter desription) ABCDE Part II Basi Plan Information enter all requested information 1a Name of plan LOCKHEED MARTIN CORPORATION BASIC BENEFIT PLAN FOR HOURLY EMPLOYEES 2a Plan sponsor s name (employer, if for a single-employer plan) Mailing address (inlude room, apt., suite no. and street, or P.O. Box) City or town, state or provine, ountry, and ZIP or foreign postal ode (if foreign, see instrutions) LOCKHEED MARTIN CORPORATION D/B/A 6801 /o ROCKLEDGE DRIVE, CCT-115 BETHESDA, MD ABCDE ABCDE CITYEFGHI AB, ST UK Caution: A penalty for the late or inomplete filing of this return/report will be assessed unless reasonable ause is established. 1b Three-digit plan number (PN) Effetive date of plan YYYY-MM-DD 12/27/1965 2b Employer Identifiation Number (EIN) Plan Sponsor s telephone number d Business ode (see instrutions) Under penalties of perjury and other penalties set forth in the instrutions, I delare that I have examined this return/report, inluding aompanying shedules, statements and attahments, as well as the eletroni version of this return/report, and to the best of my knowledge and belief, it is true, orret, and omplete. SIGN HERE Filed with authorized/valid eletroni signature. YYYY-MM-DD 10/14/2017 ROBERT MUENINGHOFF ABCDE Signature of plan administrator Date Enter name of individual signing as plan administrator SIGN HERE YYYY-MM-DD ABCDE Signature of employer/plan sponsor Date Enter name of individual signing as employer or plan sponsor SIGN YYYY-MM-DD ABCDE HERE Signature of DFE Date Enter name of individual signing as DFE Preparer s name (inluding firm name, if appliable) and address (inlude room or suite number) Preparer s telephone number For Paperwork Redution At Notie, see the Instrutions for Form Form 5500 (2016) v

2 Form 5500 (2016) Page 2 3a Plan administrator s name and address X Same as Plan Sponsor /o ABCDE ABCDE CITYEFGHI AB, ST UK 4 If the name and/or EIN of the plan sponsor has hanged sine the last return/report filed for this plan, enter the name, EIN and the plan number from the last return/report: a Sponsor s name 3b Administrator s EIN Administrator s telephone number b EIN PN Total number of partiipants at the beginning of the plan year Number of partiipants as of the end of the plan year unless otherwise stated (welfare plans omplete only lines 6a(1), 6a(2), 6b, 6, and 6d). a(1) Total number of ative partiipants at the beginning of the plan year... 6a(1) a(2) Total number of ative partiipants at the end of the plan year... 6a(2) b Retired or separated partiipants reeiving benefits... 6b Other retired or separated partiipants entitled to future benefits d Subtotal. Add lines 6a(2), 6b, and d e Deeased partiipants whose benefiiaries are reeiving or are entitled to reeive benefits.... 6e f Total. Add lines 6d and 6e.... 6f g Number of partiipants with aount balanes as of the end of the plan year (only defined ontribution plans omplete this item)... 6g h Number of partiipants that terminated employment during the plan year with arued benefits that were less than 100% vested... 6h Enter the total number of employers obligated to ontribute to the plan (only multiemployer plans omplete this item) a If the plan provides pension benefits, enter the appliable pension feature odes from the List of Plan Charateristis Codes in the instrutions: 2E 2O 3H 2F 2G 2R 3F 2T b If the plan provides welfare benefits, enter the appliable welfare feature odes from the List of Plan Charateristis Codes in the instrutions: 9a Plan funding arrangement (hek all that apply) 9b Plan benefit arrangement (hek all that apply) (1) X Insurane (1) X Insurane (2) X Code setion 412(e)(3) insurane ontrats (2) X Code setion 412(e)(3) insurane ontrats (3) X Trust (3) X Trust (4) X General assets of the sponsor (4) X General assets of the sponsor 10 Chek all appliable boxes in 10a and 10b to indiate whih shedules are attahed, and, where indiated, enter the number attahed. (See instrutions) a Pension Shedules (1) X R (Retirement Plan Information) (2) X MB (Multiemployer Defined Benefit Plan and Certain Money Purhase Plan Atuarial Information) - signed by the plan atuary (3) X SB (Single-Employer Defined Benefit Plan Atuarial Information) - signed by the plan atuary b General Shedules (1) X H (Finanial Information) (2) X I (Finanial Information Small Plan) (3) X 0 A (Insurane Information) (4) X C (Servie Provider Information) (5) X D (DFE/Partiipating Plan Information) (6) X G (Finanial Transation Shedules)

3 Form 5500 (2016) Page 3 Part III Form M-1 Compliane Information (to be ompleted by welfare benefit plans) 11a If the plan provides welfare benefits, was the plan subjet to the Form M-1 filing requirements during the plan year? (See instrutions and 29 CFR ) X Yes X No If Yes is heked, omplete lines 11b and b Is the plan urrently in ompliane with the Form M-1 filing requirements? (See instrutions and 29 CFR )... X Yes 11 Enter the Reeipt Confirmation Code for the 2016 Form M-1 annual report. If the plan was not required to file the 2016 Form M-1 annual report, enter the Reeipt Confirmation Code for the most reent Form M-1 that was required to be filed under the Form M-1 filing requirements. (Failure to enter a valid Reeipt Confirmation Code will subjet the Form 5500 filing to rejetion as inomplete.) Reeipt Confirmation Code X No

4 SCHEDULE D (Form 5500) Department of the Treasury Internal Revenue Servie Department of Labor Employee Benefits Seurity Administration DFE/Partiipating Plan Information This shedule is required to be filed under setion 104 of the Employee Retirement Inome Seurity At of 1974 (ERISA). File as an attahment to Form OMB No This Form is Open to Publi Inspetion. For alendar plan year 2016 or fisal plan year beginning 01/01/2016 and ending 12/31/2016 A Name of plan B Three-digit LOCKHEED MARTIN CORPORATION BASIC BENEFIT PLAN FOR HOURLY EMPLOYEES plan number (PN) C Plan or DFE sponsor s name as shown on line 2a of Form 5500 LOCKHEED MARTIN CORPORATION D Employer Identifiation Number (EIN) Part I Information on interests in MTIAs, CCTs, PSAs, and IEs (to be ompleted by plans and DFEs) (Complete as many entries as needed to report all interests in DFEs) a Name of MTIA, CCT, PSA, or IE: LMC DEFINED CONTRIB MASTER TRUST ABCD STATE STREET BANK AND TRUST COMPANY M ode IE at end of year (see instrutions) a Name of MTIA, CCT, PSA, or IE: ABCD ode IE at end of year (see instrutions) a Name of MTIA, CCT, PSA, or IE: ABCD ode IE at end of year (see instrutions) a Name of MTIA, CCT, PSA, or IE: ABCD ode IE at end of year (see instrutions) a Name of MTIA, CCT, PSA, or IE: ABCD ode IE at end of year (see instrutions) a Name of MTIA, CCT, PSA, or IE: ABCD ode IE at end of year (see instrutions) a Name of MTIA, CCT, PSA, or IE: ABCD ode IE at end of year (see instrutions) For Paperwork Redution At Notie, see the Instrutions for Form Shedule D (Form 5500) 2016 v

5 Shedule D (Form 5500) 2016 Page 2-11 x a Name of MTIA, CCT, PSA, or IE: ABCD ode IE at end of year (see instrutions) a Name of MTIA, CCT, PSA, or IE: ABCD ode IE at end of year (see instrutions) a Name of MTIA, CCT, PSA, or IE: ABCD ode IE at end of year (see instrutions) a Name of MTIA, CCT, PSA, or IE: ABCD ode IE at end of year (see instrutions) a Name of MTIA, CCT, PSA, or IE: ABCD ode IE at end of year (see instrutions) a Name of MTIA, CCT, PSA, or IE: ABCD ode IE at end of year (see instrutions) a Name of MTIA, CCT, PSA, or IE: ABCD ode IE at end of year (see instrutions) a Name of MTIA, CCT, PSA, or IE: ABCD ode IE at end of year (see instrutions) a Name of MTIA, CCT, PSA, or IE: ABCD ode IE at end of year (see instrutions) a Name of MTIA, CCT, PSA, or IE: ABCD ode IE at end of year (see instrutions)

6 6 Shedule D (Form 5500) 2016 Page 3-1 x Part II Information on Partiipating Plans (to be ompleted by DFEs) (Complete as many entries as needed to report all partiipating plans) a Plan name b Name of plan sponsor a Plan name b Name of plan sponsor a Plan name b Name of plan sponsor a Plan name b Name of plan sponsor a Plan name b Name of plan sponsor a Plan name b Name of plan sponsor a Plan name b Name of plan sponsor a Plan name b Name of plan sponsor a Plan name b Name of plan sponsor a Plan name b Name of plan sponsor a Plan name b Name of plan sponsor a Plan name b Name of plan sponsor

7 SCHEDULE H (Form 5500) Department of the Treasury Internal Revenue Servie Department of Labor Employee Benefits Seurity Administration Finanial Information This shedule is required to be filed under setion 104 of the Employee Retirement Inome Seurity At of 1974 (ERISA), and setion 6058(a) of the Internal Revenue Code (the Code). OMB No Pension Benefit Guaranty Corporation File as an attahment to Form This Form is Open to Publi Inspetion For alendar plan year 2016 or fisal plan year beginning 01/01/2016 and ending 12/31/2016 A Name of plan B Three-digit LOCKHEED MARTIN CORPORATION BASIC BENEFIT PLAN FOR HOURLY EMPLOYEES plan number (PN) C Plan sponsor s name as shown on line 2a of Form 5500 D Employer Identifiation Number (EIN) LOCKHEED MARTIN CORPORATION Part I Asset and Liability Statement 1 Current value of plan assets and liabilities at the beginning and end of the plan year. Combine the value of plan assets held in more than one trust. Report the value of the plan s interest in a ommingled fund ontaining the assets of more than one plan on a line-by-line basis unless the value is reportable on lines 1(9) through 1(14). Do not enter the value of that portion of an insurane ontrat whih guarantees, during this plan year, to pay a speifi dollar benefit at a future date. Round off amounts to the nearest dollar. MTIAs, CCTs, PSAs, and IEs do not omplete lines 1b(1), 1b(2), 1(8), 1g, 1h, and 1i. CCTs, PSAs, and IEs also do not omplete lines 1d and 1e. See instrutions. Assets (a) Beginning of Year (b) End of Year a Total noninterest-bearing ash... 1a b Reeivables (less allowane for doubtful aounts): (1) Employer ontributions... 1b(1) (2) Partiipant ontributions... 1b(2) (3) Other... 1b(3) General investments: (1) Interest-bearing ash (inlude money market aounts & ertifiates of deposit)... 1(1) (2) U.S. Government seurities... 1(2) (3) Corporate debt instruments (other than employer seurities): (A) Preferred... 1(3)(A) (B) All other... 1(3)(B) (4) Corporate stoks (other than employer seurities): (A) Preferred... 1(4)(A) (B) Common... 1(4)(B) (5) Partnership/joint venture interests... 1(5) (6) Real estate (other than employer real property)... 1(6) (7) Loans (other than to partiipants)... 1(7) (8) Partiipant loans... 1(8) (9) Value of interest in ommon/olletive trusts... 1(9) (10) Value of interest in pooled separate aounts... 1(10) (11) Value of interest in master trust investment aounts... 1(11) (12) Value of interest in investment entities... 1(12) (13) Value of interest in registered investment ompanies (e.g., mutual funds)... 1(13) (14) Value of funds held in insurane ompany general aount (unalloated ontrats)... 1(14) (15) Other... 1(15) For Paperwork Redution At Notie, see the Instrutions for Form Shedule H (Form 5500) 2016 v

8 Shedule H (Form 5500) 2016 Page 2 1d Employer-related investments: (a) Beginning of Year (b) End of Year (1) Employer seurities... 1d(1) (2) Employer real property... 1d(2) e Buildings and other property used in plan operation... 1e f Total assets (add all amounts in lines 1a through 1e)... 1f Liabilities 1g Benefit laims payable... 1g h Operating payables... 1h i Aquisition indebtedness... 1i j Other liabilities... 1j k Total liabilities (add all amounts in lines 1g through1j)... 1k Net Assets 1l Net assets (subtrat line 1k from line 1f)... 1l Part II Inome and Expense Statement 2 Plan inome, expenses, and hanges in net assets for the year. Inlude all inome and expenses of the plan, inluding any trust(s) or separately maintained fund(s) and any payments/reeipts to/from insurane arriers. Round off amounts to the nearest dollar. MTIAs, CCTs, PSAs, and IEs do not omplete lines 2a, 2b(1)(E), 2e, 2f, and 2g. Inome (a) Amount (b) Total a Contributions: (1) Reeived or reeivable in ash from: (A) Employers... 2a(1)(A) (B) Partiipants... 2a(1)(B) (C) Others (inluding rollovers)... 2a(1)(C) (2) Nonash ontributions... 2a(2) (3) Total ontributions. Add lines 2a(1)(A), (B), (C), and line 2a(2)... 2a(3) b Earnings on investments: (1) Interest: (A) Interest-bearing ash (inluding money market aounts and ertifiates of deposit)... 2b(1)(A) (B) U.S. Government seurities... 2b(1)(B) (C) Corporate debt instruments... 2b(1)(C) (D) Loans (other than to partiipants)... 2b(1)(D) (E) Partiipant loans... 2b(1)(E) (F) Other... 2b(1)(F) (G) Total interest. Add lines 2b(1)(A) through (F)... 2b(1)(G) (2) Dividends: (A) Preferred stok... 2b(2)(A) (B) Common stok... 2b(2)(B) (C) Registered investment ompany shares (e.g. mutual funds)... 2b(2)(C) (D) Total dividends. Add lines 2b(2)(A), (B), and (C) 2b(2)(D) (3) Rents... 2b(3) (4) Net gain (loss) on sale of assets: (A) Aggregate proeeds... 2b(4)(A) (B) Aggregate arrying amount (see instrutions)... 2b(4)(B) (C) Subtrat line 2b(4)(B) from line 2b(4)(A) and enter result... 2b(4)(C) (5) Unrealized appreiation (depreiation) of assets: (A) Real estate... 2b(5)(A) (B) Other... 2b(5)(B) (C) Total unrealized appreiation of assets. Add lines 2b(5)(A) and (B)... 2b(5)(C)

9 Shedule H (Form 5500) 2016 Page 3 (a) Amount (b) Total (6) Net investment gain (loss) from ommon/olletive trusts... 2b(6) (7) Net investment gain (loss) from pooled separate aounts... 2b(7) (8) Net investment gain (loss) from master trust investment aounts... 2b(8) (9) Net investment gain (loss) from investment entities... 2b(9) (10) Net investment gain (loss) from registered investment ompanies (e.g., mutual funds)... 2b(10) Other inome d Total inome. Add all inome amounts in olumn (b) and enter total... 2d Expenses e Benefit payment and payments to provide benefits: (1) Diretly to partiipants or benefiiaries, inluding diret rollovers... 2e(1) (2) To insurane arriers for the provision of benefits... 2e(2) (3) Other... 2e(3) (4) Total benefit payments. Add lines 2e(1) through (3)... 2e(4) f Corretive distributions (see instrutions)... 2f g Certain deemed distributions of partiipant loans (see instrutions)... 2g h Interest expense... 2h i Administrative expenses: (1) Professional fees... 2i(1) (2) Contrat administrator fees... 2i(2) (3) Investment advisory and management fees... 2i(3) (4) Other... 2i(4) (5) Total administrative expenses. Add lines 2i(1) through (4)... 2i(5) j Total expenses. Add all expense amounts in olumn (b) and enter total... 2j Net Inome and Reoniliation k Net inome (loss). Subtrat line 2j from line 2d... 2k l Transfers of assets: (1) To this plan... 2l(1) (2) From this plan... 2l(2) Part III Aountant s Opinion 3 Complete lines 3a through 3 if the opinion of an independent qualified publi aountant is attahed to this Form Complete line 3d if an opinion is not attahed. a The attahed opinion of an independent qualified publi aountant for this plan is (see instrutions): (1) X Unqualified (2) X Qualified (3) X Dislaimer (4) X Adverse b Did the aountant perform a limited sope audit pursuant to 29 CFR and/or (d)? X Yes X No Enter the name and EIN of the aountant (or aounting firm) below: (1) Name: MITCHELL & TITUS, LLP ABCD (2) EIN: d The opinion of an independent qualified publi aountant is not attahed beause: (1) X This form is filed for a CCT, PSA, or MTIA. (2) X It will be attahed to the next Form 5500 pursuant to 29 CFR Part IV Compliane Questions 4 CCTs and PSAs do not omplete Part IV. MTIAs, IEs, and GIAs do not omplete lines 4a, 4e, 4f, 4g, 4h, 4k, 4m, 4n, or IEs also do not omplete lines 4j and 4l. MTIAs also do not omplete line 4l. a b During the plan year: Yes No Amount Was there a failure to transmit to the plan any partiipant ontributions within the time period desribed in 29 CFR ? Continue to answer Yes for any prior year failures until fully orreted. (See instrutions and DOL s Voluntary Fiduiary Corretion Program.)... Were any loans by the plan or fixed inome obligations due the plan in default as of the lose of the plan year or lassified during the year as unolletible? Disregard partiipant loans seured by partiipant s aount balane. (Attah Shedule G (Form 5500) Part I if Yes is heked.)... 4a 4b X X

10 d Shedule H (Form 5500) 2016 Page 4-1 x Yes No Amount Were any leases to whih the plan was a party in default or lassified during the year as unolletible? (Attah Shedule G (Form 5500) Part II if Yes is heked.)... 4 X Were there any nonexempt transations with any party-in-interest? (Do not inlude transations reported on line 4a. Attah Shedule G (Form 5500) Part III if Yes is heked.)... 4d X e Was this plan overed by a fidelity bond?... 4e X f Did the plan have a loss, whether or not reimbursed by the plan s fidelity bond, that was aused by fraud or dishonesty?... 4f X g h Did the plan hold any assets whose urrent value was neither readily determinable on an established market nor set by an independent third party appraiser?... 4g X Did the plan reeive any nonash ontributions whose value was neither readily determinable on an established market nor set by an independent third party appraiser?... 4h X i Did the plan have assets held for investment? (Attah shedule(s) of assets if Yes is heked, and see instrutions for format requirements.)... 4i X j Were any plan transations or series of transations in exess of 5% of the urrent value of plan assets? (Attah shedule of transations if Yes is heked, and see instrutions for format requirements.)... 4j X k Were all the plan assets either distributed to partiipants or benefiiaries, transferred to another plan, or brought under the ontrol of the PBGC?... 4k X l Has the plan failed to provide any benefit when due under the plan?... 4l X m If this is an individual aount plan, was there a blakout period? (See instrutions and 29 CFR )... 4m X n If 4m was answered Yes, hek the Yes box if you either provided the required notie or one of the exeptions to providing the notie applied under 29 CFR n o Defined Benefit Plan or Money Purhase Pension Plan Only: Were any distributions made during the plan year to an employee who attained age 62 and had not separated from servie?... 4o 5a Has a resolution to terminate the plan been adopted during the plan year or any prior plan year? If Yes, enter the amount of any plan assets that reverted to the employer this year... X Yes X No Amount:- 5b If, during this plan year, any assets or liabilities were transferred from this plan to another plan(s), identify the plan(s) to whih assets or liabilities were transferred. (See instrutions.) 5b(1) Name of plan(s) 5b(2) EIN(s) 5b(3) PN(s) If the plan is a defined benefit plan, is it overed under the PBGC insurane program (See ERISA setion 4021.)?... X Yes X No X Not determined If Yes is heked, enter the My PAA onfirmation number from the PBGC premium filing for this plan year. (See instrutions.) Part V Trust Information 6a Name of trust 6b Trust s EIN 6 Name of trustee or ustodian 6d Trustee s or ustodian s telephone number

11 SCHEDULE R (Form 5500) Department of the Treasury Internal Revenue Servie Department of Labor Employee Benefits Seurity Administration Pension Benefit Guaranty Corporation Retirement Plan Information This shedule is required to be filed under setions 104 and 4065 of the Employee Retirement Inome Seurity At of 1974 (ERISA) and setion 6058(a) of the Internal Revenue Code (the Code). File as an attahment to Form For alendar plan year 2016 or fisal plan year beginning 01/01/2016 and ending A Name of plan B LOCKHEED MARTIN CORPORATION BASIC BENEFIT PLAN FOR HOURLY EMPLOYEES C Plan sponsor s name as shown on line 2a of Form 5500 LOCKHEED MARTIN CORPORATION Part I Distributions All referenes to distributions relate only to payments of benefits during the plan year. 1 Total value of distributions paid in property other than in ash or the forms of property speified in the instrutions... D OMB No This Form is Open to Publi Inspetion. Three-digit plan number (PN) Employer Identifiation Number (EIN) Enter the EIN(s) of payor(s) who paid benefits on behalf of the plan to partiipants or benefiiaries during the year (if more than two, enter EINs of the two payors who paid the greatest dollar amounts of benefits): EIN(s): Profit-sharing plans, ESOPs, and stok bonus plans, skip line 3. 3 Number of partiipants (living or deeased) whose benefits were distributed in a single sum, during the plan 3 year Part II Funding Information (If the plan is not subjet to the minimum funding requirements of setion of 412 of the Internal Revenue Code or ERISA setion 302, skip this Part.) 4 Is the plan administrator making an eletion under Code setion 412(d)(2) or ERISA setion 302(d)(2)?... X Yes X No X N/A If the plan is a defined benefit plan, go to line 8. 5 If a waiver of the minimum funding standard for a prior year is being amortized in this plan year, see instrutions and enter the date of the ruling letter granting the waiver. Date: Month Day Year If you ompleted line 5, omplete lines 3, 9, and 10 of Shedule MB and do not omplete the remainder of this shedule. 6 a Enter the minimum required ontribution for this plan year (inlude any prior year aumulated funding 6a defiieny not waived)... b Enter the amount ontributed by the employer to the plan for this plan year... 6b If you ompleted line 6, skip lines 8 and 9. 7 Will the minimum funding amount reported on line 6 be met by the funding deadline?... X Yes X No X N/A 8 If a hange in atuarial ost method was made for this plan year pursuant to a revenue proedure or other authority providing automati approval for the hange or a lass ruling letter, does the plan sponsor or plan administrator agree with the hange?... X Yes X No X N/A Part III Amendments 9 If this is a defined benefit pension plan, were any amendments adopted during this plan year that inreased or dereased the value of benefits? If yes, hek the appropriate box. If no, hek the No box.... X Inrease X Derease X Both X No Part IV ESOPs (see instrutions). If this is not a plan desribed under Setion 409(a) or 4975(e)(7) of the Internal Revenue Code, skip this Part. 10 Were unalloated employer seurities or proeeds from the sale of unalloated seurities used to repay any exempt loan?... X Yes X No 11 a Does the ESOP hold any preferred stok?... X Yes X No b 12/31/2016 Subtrat the amount in line 6b from the amount in line 6a. Enter the result (enter a minus sign to the left of a negative amount) If the ESOP has an outstanding exempt loan with the employer as lender, is suh loan part of a bak-to-bak loan? (See instrutions for definition of bak-to-bak loan.) Does the ESOP hold any stok that is not readily tradable on an established seurities market?... X Yes X No For Paperwork Redution At Notie, see the Instrutions for Form Shedule R (Form 5500) 2016 v X Yes X No

12 Shedule R (Form 5500) 2016 Page x Part V Additional Information for Multiemployer Defined Benefit Pension Plans 13 Enter the following information for eah employer that ontributed more than 5% of total ontributions to the plan during the plan year (measured in dollars). See instrutions. Complete as many entries as needed to report all appliable employers. a Name of ontributing employer b EIN Dollar amount ontributed by employer d Date olletive bargaining agreement expires (If employer ontributes under more than one olletive bargaining agreement, hek box X and see instrutions regarding required attahment. Otherwise, enter the appliable date.) Month Day Year e Contribution rate information (If more than one rate applies, hek this box X and see instrutions regarding required attahment. Otherwise, omplete lines 13e(1) and 13e(2).) (1) Contribution rate (in dollars and ents) (2) Base unit measure: X Hourly X Weekly X Unit of prodution X Other (speify): a Name of ontributing employer b EIN Dollar amount ontributed by employer d Date olletive bargaining agreement expires (If employer ontributes under more than one olletive bargaining agreement, hek box X and see instrutions regarding required attahment. Otherwise, enter the appliable date.) Month Day Year e Contribution rate information (If more than one rate applies, hek this box X and see instrutions regarding required attahment. Otherwise, omplete lines 13e(1) and 13e(2).) (1) Contribution rate (in dollars and ents) (2) Base unit measure: X Hourly X Weekly X Unit of prodution X Other (speify): a Name of ontributing employer b EIN Dollar amount ontributed by employer d Date olletive bargaining agreement expires (If employer ontributes under more than one olletive bargaining agreement, hek box X and see instrutions regarding required attahment. Otherwise, enter the appliable date.) Month Day Year e Contribution rate information (If more than one rate applies, hek this box X and see instrutions regarding required attahment. Otherwise, omplete lines 13e(1) and 13e(2).) (1) Contribution rate (in dollars and ents) (2) Base unit measure: X Hourly X Weekly X Unit of prodution X Other (speify): a Name of ontributing employer b EIN Dollar amount ontributed by employer d Date olletive bargaining agreement expires (If employer ontributes under more than one olletive bargaining agreement, hek box X and see instrutions regarding required attahment. Otherwise, enter the appliable date.) Month Day Year e Contribution rate information (If more than one rate applies, hek this box X and see instrutions regarding required attahment. Otherwise, omplete lines 13e(1) and 13e(2).) (1) Contribution rate (in dollars and ents) (2) Base unit measure: X Hourly X Weekly X Unit of prodution X Other (speify): a Name of ontributing employer b EIN Dollar amount ontributed by employer d Date olletive bargaining agreement expires (If employer ontributes under more than one olletive bargaining agreement, hek box X and see instrutions regarding required attahment. Otherwise, enter the appliable date.) Month Day Year e Contribution rate information (If more than one rate applies, hek this box X and see instrutions regarding required attahment. Otherwise, omplete lines 13e(1) and 13e(2).) (1) Contribution rate (in dollars and ents) (2) Base unit measure: X Hourly X Weekly X Unit of prodution X Other (speify): a Name of ontributing employer b EIN Dollar amount ontributed by employer d Date olletive bargaining agreement expires (If employer ontributes under more than one olletive bargaining agreement, hek box X and see instrutions regarding required attahment. Otherwise, enter the appliable date.) Month Day Year e Contribution rate information (If more than one rate applies, hek this box X and see instrutions regarding required attahment. Otherwise, omplete lines 13e(1) and 13e(2).) (1) Contribution rate (in dollars and ents) (2) Base unit measure: X Hourly X Weekly X Unit of prodution X Other (speify):

13 Shedule R (Form 5500) 2016 Page 3 14 Enter the number of partiipants on whose behalf no ontributions were made by an employer as an employer of the partiipant for: a The urrent year... 14a b The plan year immediately preeding the urrent plan year... 14b The seond preeding plan year Enter the ratio of the number of partiipants under the plan on whose behalf no employer had an obligation to make an employer ontribution during the urrent plan year to: a The orresponding number for the plan year immediately preeding the urrent plan year... 15a b The orresponding number for the seond preeding plan year... 15b Information with respet to any employers who withdrew from the plan during the preeding plan year: a Enter the number of employers who withdrew during the preeding plan year... 16a b If line 16a is greater than 0, enter the aggregate amount of withdrawal liability assessed or estimated to be assessed against suh withdrawn employers... 16b If assets and liabilities from another plan have been transferred to or merged with this plan during the plan year, hek box and see instrutions regarding supplemental information to be inluded as an attahment.... X Part VI Additional Information for Single-Employer and Multiemployer Defined Benefit Pension Plans 18 If any liabilities to partiipants or their benefiiaries under the plan as of the end of the plan year onsist (in whole or in part) of liabilities to suh partiipants and benefiiaries under two or more pension plans as of immediately before suh plan year, hek box and see instrutions regarding supplemental information to be inluded as an attahment... X 19 If the total number of partiipants is 1,000 or more, omplete lines (a) through () a Enter the perentage of plan assets held as: Stok: % Investment-Grade Debt: % High-Yield Debt: % Real Estate: % Other: % b Provide the average duration of the ombined investment-grade and high-yield debt: X 0-3 years X 3-6 years X 6-9 years X 9-12 years X years X years X years X 21 years or more What duration measure was used to alulate line 19(b)? X Effetive duration X Maaulay duration X Modified duration X Other (speify): Part VII IRS Compliane Questions 20a Is the plan a 401(k) plan? If No, skip b... X Yes X No 20b How did the plan satisfy the nondisrimination requirements for employee deferrals under setion 401(k)(3) for the plan year? Chek all that apply:... 21a What testing method was used to satisfy the overage requirements under setion 410(b) for the plan year? Chek all that apply:... X Design-based safe harbor Current year X ADP test Ratio X perentage test Prior year X ADP test X N/A X Average benefit test X N/A 21b Did the plan satisfy the overage and nondisrimination requirements of setions 410(b) and 401(a)(4) X Yes X No for the plan year by ombining this plan with any other plan under the permissive aggregation rules?... 22a If the plan is a master and prototype plan (M&P) or volume submitter plan that reeived a favorable IRS opinion letter or advisory letter, enter the date of the letter / / and the serial number. 22b If the plan is an individually-designed plan that reeived a favorable determination letter from the IRS, enter the date of the most reent determination letter / /.

14 L OCKHEED M ARTIN C ORPORATION B ASIC B ENEFIT P LAN FOR H OURLY E MPLOYEES Finanial Statements as of Deember 31, 2016 and 2015, and for the Year Ended Deember 31, 2016, with Independent Auditor s Report

15 Lokheed Martin Corporation Basi Benefit Plan for Hourly Employees Finanial Statements Year ended Deember 31, 2016 Table of Contents Independent Auditor s Report 1-2 Finanial Statements: Statements of Net Assets Available for Benefits as of Deember 31, 2016 and Statement of Changes in Net Assets Available for Benefits for the Year Ended Deember 31, Notes to Finanial Statements 5-12

16 INDEPENDENT AUDITOR S REPORT The Plan Administrator Lokheed Martin Corporation Basi Benefit Plan for Hourly Employees We have audited the aompanying finanial statements of the Lokheed Martin Corporation Basi Benefit Plan for Hourly Employees, whih omprise the statements of net assets available for benefits as of Deember 31, 2016 and 2015, and the related statement of hanges in net assets available for benefits for the year ended Deember 31, 2016, and the related notes to the finanial statements. Management s Responsibility for the Finanial Statements Management is responsible for the preparation and fair presentation of these finanial statements in aordane with aounting priniples generally aepted in the United States of Ameria; this inludes the design, implementation, and maintenane of internal ontrol relevant to the preparation and fair presentation of finanial statements that are free of material misstatement, whether due to fraud or error. Auditor s Responsibility Our responsibility is to express an opinion on these finanial statements based on our audits. We onduted our audits in aordane with auditing standards generally aepted in the United States of Ameria. Those standards require that we plan and perform the audit to obtain reasonable assurane about whether the finanial statements are free of material misstatement. An audit involves performing proedures to obtain audit evidene about the amounts and dislosures in the finanial statements. The proedures seleted depend on the auditor s judgment, inluding the assessment of the risks of material misstatement of the finanial statements, whether due to fraud or error. In making those risk assessments, the auditor onsiders internal ontrol relevant to the entity s preparation and fair presentation of the finanial statements in order to design audit proedures that are appropriate in the irumstanes, but not for the purpose of expressing an opinion on the effetiveness of the entity s internal ontrol. Aordingly, we express no suh opinion. An audit also inludes evaluating the appropriateness of aounting poliies used and the reasonableness of signifiant aounting estimates made by management, as well as evaluating the overall presentation of the finanial statements N. Street, NW Washington, DC T F mithelltitus.om

17 1 We believe that the audit evidene we have obtained is suffiient and appropriate to provide a basis for our audit opinion. Opinion In our opinion, the finanial statements referred to above present fairly, in all material respets, the net assets available for benefits of the Lokheed Martin Corporation Basi Benefit Plan for Hourly Employees at Deember 31, 2016 and 2015, and the hanges in its net assets available for benefits for the year ended Deember 31, 2016, in aordane with aounting priniples generally aepted in the United States of Ameria. June 22,

18 Lokheed Martin Corporation Basi Benefit Plan for Hourly Employees Statements of Net Assets Available for Benefits (in thousands) Deember 31, Assets Interest in Lokheed Martin Corporation Defined Contribution Plans Master Trust: Investments, at fair value... $ 38,476 $ 38,180 Investments in fully benefit-responsive investment ontrats at ontrat value... 4,535 3,885 Employer ontributions reeivable Total assets 43,481 42,535 Liabilities Administrative expenses payable Total net assets available for benefits $ 43,478 $ 42,530 The aompanying notes are an integral part of these finanial statements. 3

19 Lokheed Martin Corporation Basi Benefit Plan for Hourly Employees Statement of Changes in Net Assets Available for Benefits (in thousands) Year Ended Deember 31, 2016 Net assets available for benefits at beginning of year... $ 42,530 Additions to net assets: Employer ontributions... 1,866 Interest in net investment gain from partiipation in Lokheed Martin Corporation Defined Contribution Plans Master Trust... 3,659 Total additions... 5,525 Dedutions from net assets: Distributions and withdrawals... 4,481 Administrative expenses Total dedutions... 4,577 Change in net assets Net assets available for benefits at end of year... $43,478 The aompanying notes are an integral part of these finanial statements. 4

20 Lokheed Martin Corporation Basi Benefit Plan for Hourly Employees Notes to Finanial Statements 1. Desription of the Plan The following desription of the Lokheed Martin Corporation Basi Benefit Plan for Hourly Employees (the Plan) provides only general information about the Plan s provisions. Partiipants should refer to the Plan doument and Summary Plan Desription for a more omplete desription of the Plan s provisions. General The Plan is a defined ontribution nonontributory plan overing Lokheed Martin Corporation (Lokheed Martin or the Corporation) hourly employees in groups to whih the Plan is extended by the Corporation or by olletive bargaining agreements. Eligible employees may enroll in the Plan on the date of hire. The Plan inludes an Employee Stok Ownership Plan (ESOP) feature. Cash dividends paid on Lokheed Martin ommon stok in both the Employee Stok Ownership Plan Fund (ESOP Fund) and the Lokheed Martin Stok Fund are automatially reinvested in those funds, unless the partiipant elets to reeive the dividend diretly as taxable inome. The assets of the Plan, exluding reeivables, are held and invested on a ommingled basis in the Lokheed Martin Corporation Defined Contribution Plans Master Trust (the Master Trust) under an agreement between Lokheed Martin and State Street Bank and Trust Company (the Trustee). The reord keeper is Voya. Lokheed Martin is the Plan Sponsor and the Plan Administrator. Contributions The Plan provides for a quarterly ontribution by the Corporation of $35 to $110, depending on the olletive bargaining agreement, to eah eligible partiipant s aount. Partiipants are immediately vested in all employer ontributions. Employer ontributions may be invested in one or more of the available investment funds at the partiipant s eletion. Partiipants may hange the investment mix of their aount balane up to 12 times during a alendar year. In addition, the partiipant will always be provided at least one trading opportunity eah alendar quarter regardless of the number of prior investment trades they plaed for the year. The partiipant will have one final opportunity to transfer all or part of their aount balane to the Stable Value Fund during the fourth quarter of eah 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-Proteted Seurities (TIPS) Fund, or the Self-Direted Brokerage Aount (SDBA). Partiipants may make an unlimited number of transfers out of the Lokheed Martin Stok Fund or the ESOP Fund. An option available to partiipants is the SDBA, whereby a partiipant may elet to invest up to 75% of the partiipant s transferable aount balane in stoks, mutual funds, bonds, or other investments offered by the Plan at the partiipant s diretion. A partiipant s initial transfer to the SDBA must be at least $3,000, and subsequent transfers must be at least $1,000. No distributions may be made diretly from the assets in the SDBA. Partiipant Aounts Eah partiipant s aount is redited with the employer s ontributions and the respetive investment earnings or losses, less expenses, of the individual funds in whih the aount is invested. Payment of Benefits On termination of servie due to death, disability or retirement, a partiipant or benefiiary may elet to reeive his or her aount balane through a number of payout options. A partiipant is entitled to the aount balane at the time his or her employment with the Corporation ends. 5

21 Lokheed Martin Corporation Basi Benefit Plan for Hourly Employees Notes to Finanial Statements (ontinued) Plan Termination Although it has not expressed any intent to do so, the Board of Diretors of Lokheed Martin has the right to amend, suspend or terminate the Plan at any time, subjet to the provisions of the Employee Retirement Inome Seurity At of 1974 (ERISA) and the terms of olletive bargaining agreements. In the event of Plan termination, partiipants will reeive a payment equal to the total value of their aounts. 2. Summary of Signifiant Aounting Poliies Basis of Aounting The finanial statements of the Plan are prepared on the arual basis of aounting. Certain amounts in the prior year have been relassified to onform to the urrent year presentation. Use of Estimates The preparation of finanial statements in onformity with U.S. generally aepted aounting priniples (GAAP) requires management to make estimates and assumptions that affet the reported amount of assets and liabilities and hanges therein, and dislosure of ontingent assets and liabilities. Atual results ould differ from those estimates. Payment of Benefits Benefits are reorded when paid. Risks and Unertainties The Plan, through the Master Trust, invests in various investment seurities. Investment seurities are exposed to various risks suh as interest rate, market, and redit risks. Due to the level of risk assoiated with ertain investment seurities, it is at least reasonably possible that hanges in the values of investment seurities will our in the near term and that suh hanges ould materially affet partiipants aount balanes and the amounts reported in the Statements of Net Assets Available for Benefits. Investment Valuation and Inome Reognition Investments in the Master Trust are primarily reported at fair value. Fair value is the prie that would have been reeived to sell an asset or paid to transfer a liability in an orderly transation between market partiipants at the measurement date. Fully benefitresponsive investment ontrats are reported at ontrat value. Contrat value is the relevant measurement attributable to fully benefit-responsive investment ontrats beause it is the amount partiipants would reeive if they were to initiate permitted transations under the terms of the Plan. The ontrat value represents ontributions plus earnings, less partiipant withdrawals and administrative expenses. See Note 3 for disussion of fair value measurements and fully benefit-responsive investment ontrats. Purhases and sales of seurities in the Master Trust are reorded on a trade-date basis. Interest inome is reorded on the arual basis. Dividends are reorded on the ex-dividend date. Gains and losses on investments bought and sold as well as held during the year are inluded in interest in net investment gain from the Master Trust on the Statement of Changes in Net Assets Available for Benefits. Administrative Expenses Diret administrative expenses are paid by the Master Trust and generally alloated to the Plan proportionally based on the Plan s interest in the Master Trust s net assets or diretly if speifially related to the Plan. Certain indiret administrative expenses are paid by the Corporation and are exluded from these finanial statements. Expenses paid by the Plan are shown on the Statement of Changes in Net Assets Available for Benefits. 6

22 Lokheed Martin Corporation Basi Benefit Plan for Hourly Employees Notes to Finanial Statements (ontinued) Reent Aounting Pronounements In February 2017, the Finanial Aounting Standards Board (FASB) issued Aounting Standard Update , whih larifies the presentation and dislosure requirements for an employee benefit plan s interest in a master trust. The new standard requires a plan s interests in master trust balanes and ativities to be presented on the fae of the Plan s finanial statements as a single line item for eah interest in a master trust. The new standard also requires the dislosure of the master trust s investments by general type and the dollar amount of the plan s interest in eah type; and the dislosure of the master trust s other assets and liabilities on a gross basis and the dollar amount of the plan s interest in eah balane. An adoption of the new standard will eliminate the requirement to dislose the Plan s overall perentage interest in the trust and the health and welfare plans to dislose 401(h) investment aount information, in whih suh information will be dislosed in the defined benefit plan. The standard is effetive for the Plan beginning on January 1, 2019, with early adoption permitted. The Plan management is urrently evaluating the impat of the standard on the finanial statements and related dislosures. In July 2015, the FASB issued ASU , a three-part standard that simplifies employee benefit plan reporting. Part I of the standard eliminates the requirement to measure and present fully benefit-responsive investment ontrats at fair value within the statements of net assets available for benefits and related dislosures and also eliminates the requirement to reonile ontrat value to fair value, when these measures differ. Under the new standard, fully benefit-responsive investment ontrats are measured, presented and dislosed only at ontrat value. Part II of the standard requires investments be grouped by general type and eliminates the requirement to dislose the net appreiation or depreiation for investments by general type and Part III provides for a measurementdate pratial expedient. The standard was effetive for the Plan beginning on January 1, 2016, with early adoption permitted for any of the three parts of the standard without adopting the other parts. The Plan early adopted Part I of the standard for Plan Year The Plan adopted Part II of the standard on January 1, 2016 and refleted the provisions of Part II for all periods presented in these finanial statements. The measurement date pratial expedient provided by Part III of the standard is not appliable as the Plan s year end oinides with the end of the reporting year in whih investments are measured. Subsequent Events The Plan has evaluated subsequent events through June 22, 2017, the date the finanial statements were available to be issued. No material subsequent events have ourred sine Deember 31, 2016 that required reognition or dislosure in these finanial statements. 3. Master Trust General The Plan s interest in the Master Trust is stated at the value of the underlying net assets in the Master Trust. The realized and unrealized gains and losses and investment inome of the Master Trust are alloated among the partiipating plans inluded therein proportionally based on eah plan s earnings, whih inlude unrealized gains and losses, investment inome and plan expenses. The Plan s interest in the Master Trust s net assets as of Deember 31, 2016 and 2015 was 0.13%. The Plan, through the Master Trust, invests in a Stable Value Fund whih holds syntheti guaranteed investment ontrats (syntheti GICs) that are fully benefit-responsive and managed separate aounts. A syntheti GIC, also known as a wrap ontrat, is an investment ontrat issued by an insurane ompany or other finanial institution paired with an underlying investment or investments, usually a portfolio of high quality fixed inome seurities. These investment ontrats 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-rediting rates. The primary fators affeting the future interest-rediting rates of the wrap ontrats inlude the level of market interest rates, the amount and timing of partiipant ontributions, transfers, and withdrawals into or out of the wrap ontrats, the investment returns generated by the investments that bak the wrap ontrats, and the duration of the underlying investments overed by the wrap ontrats. The future interest-rediting 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 ontrat value ratio of the underlying investments, and the durations of the underlying investments. The ontrats are fully benefit-responsive, whih guarantees that all qualified partiipant withdrawals will our at ontrat value. 7