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Stable Value Fund

Date December 31, 2017 Fund Assets $3,599,042,473 Net Crediting Rate1 2.12% Duration2 3.08 years

Lockheed Martin Corporation Defined Contribution Master Savings Trust

Investment Objective: The Fund’s objectives are to preserve principal and interest income, to maintain liquidity for inter-fund transfers and withdrawals, and to provide a competitive Fund crediting rate that moves generally in the direction of prevailing market rates. In most market environments, the Fund should provide investors with a higher return than a money market fund while striving to maintain liquidity for participant-initiated transactions and safety of principal. The Fund is expected, but not guaranteed, to be accounted for on a $1 NAV basis. Investment Strategy: The Fund normally invests in a variety of investment grade securities, including:

•Short term investments, cash & cash equivalents •Investment grade fixed income securities, including US Government and US Agency bonds, corporate bonds, asset backed securities, and mortgage backed securities •Investment contracts issued by banks or insurance companies (commonly referred to as “wrap contracts”). •Separate account investment contracts issued by insurance companies

The fixed income securities included in the Fund are owned by the Plan and are typically held inside Separate Accounts with wrap contracts or within Commingled Trusts with wrap contracts. The overall daily interest rate earned by the Fund is a blend of the rates credited by all of the investment contracts of the Fund, plus the return from short term investments. By design, the Fund’s blended interest rate should change in the direction of new investment rates.

Notes: 1. Net crediting rate after the deduction of investment management fees. 2. Duration measures the percent change in a bond’s price given a percentage change in interest rates. 3. Net Return assumes reinvestment of interest and capital gains for the periods indicated. Fund performance has been

calculated net of investment management fees. Individual performance may vary based on timing of deposits and withdrawals. Past performance does not guarantee future results.

1 Qtr 1 Year 3 Years 5 Years 10 YearsSince

7/31/88Net Return3

Stable Value Fund 0.55% 1.97% 1.71% 1.48% 1.83% 4.10%Bloomberg Barclays U.S. Trsy Bellwether 3 Mo Index 0.28% 0.87% 0.42% 0.28% 0.42% 3.23%iMoneyNet MFR Money Funds Index 0.19% 0.54% 0.23% 0.14% 0.30% 2.92%

Excess Return over T-Bills 0.27% 1.10% 1.29% 1.20% 1.41% 0.87%Excess Return over Money Market Funds 0.36% 1.43% 1.48% 1.34% 1.53% 1.18%

Annualized

Ann

ual B

ook

Val

ue N

et P

erfo

rman

ce (

%) Periodic Book Value Net Performance

1.10 1.18

1.50 1.66

1.97

0.08 0.05 0.07

0.35

0.87

0.02 0.01 0.02 0.13

0.54

0.00

0.50

1.00

1.50

2.00

2013 2014 2015 2016 2017Lockheed Martin Stable Value FundBloomberg Barclays U.S. Treasury Bellwether 3 Mo IndexiMoney Net MFR Money Funds Index

Risk: The Stable Value Fund is a conservative option and carries relatively low risk. However, the Fund’s investment contracts and the underlying bonds are not guaranteed by the U.S. Government, your employer, or the Investment Managers. Economic losses in the Fund, though not expected, could occur if the issuer of a contract or a bond defaults on its obligations, or if a wrap contract is terminated when the market value of covered assets is less than its book value. Wrap contracts may not provide book value coverage for redemptions following certain Plan-level actions such as Plan termination or bankruptcy of the Plan sponsor. In addition, in the event that a wrap contract is terminated there is no guarantee that the Fund will be able to obtain a replacement contract. To reduce risk of default of bonds or contracts, the Fund Managers select only wrap contract issuers that are rated A or better, and buy only securities that are rated investment grade and above by national rating agencies such as Moody’s or Standard & Poor’s. The Fund Managers conduct their own in-depth securities analysis of bond issuers and financial institutions, and manage the Fund in accordance with strict credit and diversification guidelines.

Stable Value Fund Fact Sheet December 31, 2017

Stable Value Contracts: Separate Account contracts and wrap contracts are normally carried at “book value” (principal plus interest), and such values are reflected in your daily balances. This contractual feature helps to protect principal by smoothing the daily price fluctuations of any bonds that such contracts may include, up to specified amounts and subject to certain contractual limitations. The contracts are designed to provide for participant withdrawals and transfers at book value according to the terms of the Plan and the contracts. Under certain adverse market environments and subject to satisfaction of contract provisions, the contract issuer may be required to make payments to the Fund if the Fund’s assets are insufficient to satisfy participant-initiated redemptions at book value. Wrap contracts and separate account contracts specify a formula for calculating the crediting rate, or interest rate, for the assets they cover. Such crediting rates are used in determining the Fund’s investment return or earnings for investors. The crediting rate for each wrap or separate account contract reflects the earnings rates of its underlying bonds, and also includes adjustments for differences between the market values and the book values of the covered assets. Adjustments to the crediting rate in a wrap or separate account contract that provides book value coverage may reduce its yield to (but not below) zero. In exchange for providing book value liquidity for Plan-permitted withdrawals and transfers out of the Stable Value Fund, stable value contracts require that the Plan prevent direct transfers from the Stable Value Fund to a “competing fund” such as a money market fund. Instead of allowing such direct transfers, the Plan provides that participants may transfer first from the Stable Value Fund to a non-competing fund, and then to the competing fund after a 90 day waiting period. This provision is called a “90 day equity wash.” Please note: Amounts transferred out of the Stable Value Fund must remain invested in a Core Fund or Target Date Fund for at least 90 days before they are eligible to be transferred into the Treasury Inflation-Protected Securities (TIPS), the Government Short-Term Investment Fund, or the Self Managed Account. Market to Book Ratio: The high quality bond investments held by wrap contracts and separate account contracts are typically publicly or privately traded fixed income securities that have daily market values. While these contracts are designed to provide for daily accounting and withdrawals at book value, their underlying bond investments exhibit market value volatility similar to other bond investments. The entire Fund’s market value (the sum of the market values of each of the Fund’s investments) fluctuates daily, and may be above or below 100% depending on market conditions and performance of the underlying fixed income portfolios. The wrap contracts and separate account contracts in the Fund are designed to provide coverage for the difference between market and book values in the event of participant withdrawals and transfers from the Fund, in accordance with the Plan, at book value. Thus, the Fund is designed to provide for the processing of all participant withdrawals and transfers at book value regardless of the market values of the underlying investments, except in special circumstances noted below. As of December 31, 2017, the Fund’s market to book ratio was 100.30%.

Fund Managers: The overall Fund Manager for the Stable Value Fund is Invesco Ltd. Additionally, State Street Global Advisors act in a sub-advisory capacity in the Fund. Invesco is one of the largest managers of stable value portfolios in the country, with $53.0 billion in Stable Value portfolios for 75 accounts, as of 12/31/2017. Invesco Institutional is a member of the Invesco Ltd. global investment management organization and is a registered investment advisor with offices in Atlanta, Boston, Dallas, Houston, Louisville, New York and Portland. In addition to managing a portion of the assets in the Stable Value Fund, Invesco provides total fund reporting for the entire Stable Value Fund. State Street Global Advisors (SSgA) is the asset management of State Street Corporation, one of the world’s leading providers of financial services to institutional investors, with a heritage dating back over two centuries. Backed by the strength and stability of the State Street organization, SSgA makes continual investments in our asset management and client service platform, resulting in a client-focused, solutions-driven orientation. Our investment culture is built on experience and skill that each of our more than 470 investment professionals and over 2400 employees around the world bring to every client relationship.

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Stable Value Fund Fact Sheet

Credit Quality

December 31, 2017

For Lockheed Martin Corporation use only: All material presented is compiled from sources believed to be reliable and current, but accuracy cannot be guaranteed. This is not to be construed as an offer to buy or sell any financial instruments and should not be relied upon as the sole factor in an investment making decision. As with all investments there are associated inherent risks. Please obtain and review all financial material carefully before investing. This does not constitute a recommendation of the suitability of any investment strategy for a particular investor. The opinions expressed herein are based on current market conditions and are subject to change without notice. Past performance is not indicative of future results. This portfolio is actively managed. Portfolio holdings and characteristics are subject to change. Investment Products Offered are Not FDIC-Insured, May Lose Value and are Not Bank Guaranteed.

Cash & Equivalents* 4.6%Mortgage Backed Securities 18.4%Credit (Corps) 28.0%Asset Backed Securities 17.5%Agencies 2.2%Treasuries 24.0%Commercial Mortgage Backed 5.0%GICs 0.0%Municipal 0.3%Other 0.0%Non-U.S. Gov/Agy 0.2% Total 100.0%

Diversification by Market Sector

Standard & Poors Credit Ratings Definitions: AAA An obligation rated “AAA” has the highest rating assigned by

the rating agency. The obligor’s capacity to meet its financial commitments on the obligation is extremely strong.

AA An obligation rated “AA” differs from the highest rated obligations only in small degree. The obligor’s capacity to meet its financial commitment on the obligation is very strong.

A An obligation rated “A” is somewhat more susceptible to the adverse changes in circumstances and economic conditions than obligations in higher rating categories. However, the obligor’s capacity to meet its financial commitment on the obligation is still strong.

BBB An obligation rated “BBB” exhibits adequate protection parameters. However, adverse economic conditions or changing circumstances are more likely to lead to a weakened capacity of the obligor to meet its financial commitment on the obligation.

Plus (+) or minus (-) signs following ratings from AA to BBB show relative standing within the major rating categories.

The above categories are considered investment grade.

Fund Characteristics

The information contained in this Fund description was prepared by Invesco Advisers Inc.

Cash & Equivalents* 7.1%Bank of Tokyo 18.8%Prudential Ins 18.8%Transamerica 18.8%Pacific Life 15.2%MassMutual 12.0%Metropolitan Life 9.3% Total 100.0%

Diversification by Contract

*The percentage of Cash and Equivalents may differ between the Diversification by Market Sector chart and Diversification by Contract chart due to additional cash positions held within the investments that are wrapped by the contacts.

AAA 71.5%

AA 3.5%

A 15.3%

BBB 9.7%