|Traded as||NYSE: LMT
S&P 500 Component
|Industry||Aerospace, Defense, Information security|
|Headquarters||Bethesda, Maryland, USA|
|Key people||Marillyn A. Hewson
(President & CEO)
Robert J. Stevens
Bruce L. Tanner
(Executive Vice President & CFO)
Ray O. Johnson
(Senior Vice President & CTO)
Missile defense elements
Atlas launch vehicles
|Revenue||$ 46.499 billion (FY 2011)|
|Operating income||$ 3.980 billion (FY 2011)|
|Profit||$ 2.655 billion (FY 2011)|
|Total assets||$ 37.908 billion (FY 2011)|
|Total equity||$ 1.001 billion (FY 2011)|
|Employees||123,000 (December 2011)|
Lockheed Martin (NYSE: LMT) is an American global aerospace, defense, security, and advanced technology company with worldwide interests. It was formed by the merger of Lockheed Corporation with Martin Marietta in March 1995. It is headquartered in Bethesda, Maryland, in the Washington Metropolitan Area. Lockheed Martin employs 123,000 people worldwide. Marillyn Hewson is the current president and Chief Executive Officer.
Lockheed Martin operates in five business segments. These comprise Aeronautics, Information Systems & Global Solutions, Missile and Fire Control, Mission Systems and Training, and Space Systems. In 2009 US Government contracts accounted for $38.4 billion (85%), foreign government contracts $5.8 billion (13%), and commercial and other contracts for $900 million (2%). In both 2009 and 2008 the company topped the list of US Federal Contractors.
The company has received the Collier Trophy six times, most recently (in 2001) for being part of developing the X-35/F-35B LiftFan Propulsion System, and again in 2006 for leading the team that developed the F-22 Raptor fighter jet. Lockheed Martin is currently developing the F-35 Lightning II.
Merger talks between Lockheed Corporation and Martin Marietta began in March 1994, with the companies announcing their $10 billion planned merger on August 30, 1994. The deal was finalized on March 15, 1995 when the two companies' shareholders approved the merger. The segments of the two companies not retained by the new company formed the basis for the present L-3 Communications, a mid-size defense contractor in its own right. Lockheed Martin later spun off the materials company Martin Marietta Materials.
Both companies contributed important products to the new portfolio. Lockheed products included the Trident missile, P-3 Orion, F-16 Fighting Falcon, F-22 Raptor, C-130 Hercules, A-4AR Fightinghawk and the DSCS-3 satellite. Martin Marietta products included Titan rockets, Sandia National Laboratories (management contract acquired in 1993), Space Shuttle External Tank, Viking 1 and Viking 2 landers, the Transfer Orbit Stage (under subcontract to Orbital Sciences Corporation) and various satellite models.
On April 22, 1996, Lockheed Martin completed the acquisition of Loral Corporation's defense electronics and system integration businesses for $9.1 billion, the deal having been announced in January. The remainder of Loral became Loral Space & Communications.
Lockheed Martin abandoned plans for a $8.3 billion merger with Northrop Grumman on July 16, 1998, due to government concerns over the potential strength of the new group; Lockheed/Northrop would have had control of 25% of the Department of Defense's procurement budget.
Lockheed Martin provided NASA with measurements in US Customary force units when metric was expected, resulting in the loss of the Mars Climate Orbiter at a cost of $125 million. The cost for spacecraft development was $193.1 million.
In May 2001, Lockheed Martin sold Lockheed Martin Control Systems to BAE Systems. On November 27, 2000, Lockheed completed the sale of its Aerospace Electronic Systems business to BAE Systems for $1.67 billion, a deal announced in July 2000. This group encompassed Sanders Associates, Fairchild Systems, and Lockheed Martin Space Electronics & Communications.
In 2001, Lockheed Martin won the contract to build the F-35 Lightning II; this was the largest fighter aircraft procurement project since the F-16, with an initial order of 3,000 aircraft.
In 2001, Lockheed Martin settled a nine year investigation conducted by NASA's Office of Inspector General with the assistance of the Defense Contract Audit Agency. The company paid the United States government $7.1 million based on allegations that its predecessor, Lockheed Engineering Science Corporation, submitted false lease costs claims to NASA.
On May 12, 2006, The Washington Post reported that when Robert Stevens took control of Lockheed Martin in 2004, he faced the dilemma that within 10 years 100,000 of the about 130,000 Lockheed Martin employees – more than three-quarters – would be retiring.
On August 31, 2006, Lockheed Martin won a $3.9 billion contract from NASA to design and build the CEV capsule, also known as Orion – the next spacecraft for human flight – for the Ares I rocket in the Constellation Program.[dated info]
On August 13, 2008, Lockheed Martin acquired the government business unit of Nantero, Inc., a company that had developed methods and processes for incorporating carbon nanotubes in next-generation electronic devices. In 2009, Lockheed Martin bought Unitech.
On November 18, 2010, Lockheed Martin announced that it would be closing its Eagan, MN location by 2013 to reduce costs and optimize capacity at their locations nationwide.
In January 2011, Lockheed Martin agreed to pay the US Government $2 million to settle allegations that the company submitted false claims on a U.S. government contract for that amount. The allegations came from a contract with the Naval Oceanographic Office Major Shared Resource Center in Mississippi.
On May 28, 2011 it was reported that a cyber-attack using previously stolen EMC files had broken through to sensitive materials at the contractor. It is unclear if the Lockheed incident is the specific prompt whereby on June 1, 2011, the new United States military strategy, makes explicit that a cyberattack is casus belli for a traditional act of war.
On July 10, 2012, Lockheed Martin announced it was cutting its workforce by 740 workers to reduce costs and remain competitive as necessary for future growth.
On August 2, 2012, the Vice President for Business Development, George Standridge stated that his company has offered 6 more C-130J aircraft to the Indian Air Force, for which discussions are underway with the Indian Government.
On November 27, 2012, Lockheed Martin announced that Marillyn Hewson will become the corporation's chief executive officer on January 1, 2013.
Information Systems and Global Solutions 
- Lockheed Martin IS&GS-Civil
- Lockheed Martin IS&GS-Defense
- Lockheed Martin IS&GS-National
- Lockheed Martin Orincon
- Lockheed Martin STASYS
- Lockheed Martin Technology Ventures
Missiles and Fire Control 
Mission Systems and Training 
- Lockheed Martin Canada
- Lockheed Martin Australia
- Lockheed Martin Advanced Technology Laboratories
- LMC Properties
- Lockheed Martin Aircraft Argentina SA (formerly Fabrica Militar de Aviones)
- Lockheed Martin Enterprise Business Services
- Lockheed Martin Finance Corporation
- Lockheed Martin U.K.
- Pacific Architects & Engineers – Lockheed Martin owned company
Joint ventures 
- International Launch Services (with Khrunichev, RSC Energia)
- Lockheed Martin Alenia Tactical Transport Systems (with Finmeccanica-Alenia, now folded)
- MEADS International (with EADS and MBDA)
- Space Imaging (46%, remainder public)
- United Launch Alliance (with Boeing)
- United Space Alliance (with Boeing)
- Kelly Aviation Center (with GE and Rolls-Royce)
- Protector USV – an unmanned surface vehicle with Rafael Advanced Defense Systems and BAE Systems
- Defense Support Services (DS2) (with Day & Zimmermann) official site
- Lockheed Martin Jv (with Indian company Tata Advanced Systems Limited)
Government contracts 
Lockheed Martin is active in many aspects of government contracting. It received $36 billion in government contracts in 2008 alone, more than any company in history. It now does work for more than two dozen government agencies from the Department of Defense and the Department of Energy to the Department of Agriculture and the Environmental Protection Agency. It's involved in surveillance and information processing for the CIA, the FBI, the Internal Revenue Service (IRS), the National Security Agency (NSA), the Pentagon, the Census Bureau and the Postal Service."
Corporate governance 
Current members of the board of directors of Lockheed Martin are: Edward Aldridge, Nolan Archibald, Marcus Bennett, James O. Ellis, Gwendolyn King, James Loy, Douglas McCorkindale, Eugene Murphy, Joseph Ralston, Frank Savage, Anne Stevens, Robert J. Stevens, James Ukropina and Douglas Yearley.
Lockheed "ranks number one on the 'contractor misconduct' database maintained by the Project on Government Oversight, a Washington-DC-based watchdog group." Since 1995, the company has agreed to pay $577 million to settle fifty-four instances of misconduct.
Through its political action committee, the company provides low levels of financial support to candidates who advocate national defense and relevant business issues. It is "the top contributor to the incoming House Armed Services Committee chairman, Republican Howard P. 'Buck' McKeon of California, giving more than $50,000 in the most recent election cycle. It also topped the list of donors to Sen. Daniel Inouye (D-HI), the powerful chair of the Senate Appropriations Committee before his death in 2012. Inouye was the self-described '#1 earmarks guy in the US Congress.'"
Lockheed Martin Employees Political Action Committee is one of the 50 most generous PACs in the country, according to FEC data. With contributions from 3,000 employees, it donates $500,000 a year to about 260 House and Senate candidates. For the 2004 election cycle, Lockheed's PAC has already contributed $350,279 to federal candidates, with about 62 percent going to Republicans, according to the Center for Responsive Politics. That compares with $515,000 from General Dynamics' political action committee and $122,850 from BAE Systems North America, the center's data showed.
Maryland Senator Rob Garagiola and tax rebate 
In March 2013, Maryland State Senate Majority Leader Rob Garagiola cosponsored a resolution which would give Lockheed Martin tax rebate worth millions of dollars, related to hotel taxes paid at their CLE facilty in Bethesda, MD, even while he was allegedly dating Lockheed Martin's lobbyist. This was after Montgomery County Council refused to pass a similar resolution.[self-published source?]
Management theories 
||This section contains information of unclear or questionable importance or relevance to the article's subject matter. Please help improve this article by clarifying or removing superfluous information. (November 2012)|
Along with the Board, the CEO, COO and CFO lead Lockheed Martin and provide oversight of the corporation These executives oversee Executive Vice Presidents (EVP) of four business areas. The EVPs are responsible for managing major programs.
Lockheed Martin separates its employees based on their assigned program. Each program uses an integrated product development model to organize its employees into four tiers: Tier1 –Program Manager/VP, Tier2-Functional Teams, Tier3-Integrated Product Teams (IPTs), and Tier4-detailed product development. The floor or touch workers are in a particular component assembly team that culminates in the final deliverable product. Lockheed Martin manages and maintains its relationship with these touch workers through its supervisors and unions.
Lockheed Martin tries to manage their employees through its Full Spectrum Leadership and LM21 programs. LM21 program relies on Six Sigma principles, which are techniques to improve efficiency. Senior management constructs leadership councils and assigns managers to facilitate Kaizen events, which target specific processes for improvement. A manager facilitates teams and processes stakeholders and suppliers to attempt to streamline process implementation. At Tier1, the program managers are responsible for the execution of the entire program: contract award, design, build delivery and post delivery sustainment. They work with a variety of customers on multiple contracts including end item delivery, design enhancements, support and training.
Tier2 Functional Leads (Finance, Chief Engineer, Quality, Operations, etc.) and Tier3 IPT Leads (Weapon System Development, Weapon System Integration, etc.) report to Tier1. Functional leads ensure appropriate resources are provided to programs. IPT leads are responsible for entire systems or products defined by the contract’s Statement of Work.
At Tier3, management separates employees into different lower level IPTs that are responsible for a subset of the Tier2 requirements. For example, the Tier3 Software Engineering IPT resides under Tier2 Weapon System Development. Tier3 IPTs develop major components under the Tier2 team management. IPT Leads oversee daily performance of the multi-functional IPTs. Engineers reside within the IPTs. Across the integrated product teams, tasks such as quality assurance, subcontracting, manufacturing and design are performed. To control quality, Lockheed Martin trains and builds IPT teams. Lockheed Martin ensures that work is executed correctly through a Technical Performance Measure (TPM) system which emphasizes Lockheed Martin’s Lean and 6 Sigma processes. Lockheed Martin middle management uses commitment mechanisms that parallel high commitment and human relations theory. Also, access to different levels of training allows IPT members to remain committed as outlined in the Human Commitment theory.
Floor employees assemble aircraft by major parts, by Flow-to-takt lean manufacturing implementation process which uses properties from both division of labor and scientific management. By separating tasks based on parts, Lockheed Martin utilizes the division of labor theory, specialization on a specific area creates efficiency.
See also 
- Defense contractor – table of comparable companies
- Lockheed Martin Maintenance Trophy
- Top 100 US Federal Contractors – $38.5 billion in FY09
- "Lockheed Martin 2011 Annual Report, Form 10-K, Filing Date Feb 23, 2012". secdatabase.com. Retrieved June 8, 2012.
- Jackson, Susan T. et al. The SIPRI Top 100 arms-producing companies, 2009 (short) Stockholm International Peace Research Institute, 2009. Retrieved: June 13, 2010. Quote: "Arms sales are defined by SIPRI as sales of military goods and services to military customers, including both domestic and export sales. Military goods and services are those which are designed specifically for military purposes"
- Hartung, William (2011-01-12) "Is Lockheed Martin Shadowing You?". Mother Jones
- "2009 Annual Report". LockheedMartin.com. Retrieved January 4, 2011.
- Propulsion System in Lockheed Martin Joint Strike Fighter wins Collier Trophy Lockheed Martin press release, February 28, 2003. Retrieved: January 2010
- "Propulsion system for a vertical and short takeoff and landing aircraft" (PDF). 1990. United States Patent 5209428 (pdf of original)
- Collier Trophy; list of winners. Retrieved January 2010
- Norris, Floyd (August 31, 1994). "A 'merger of equals,' with Martin Marietta the most equal". The New York Times.
- "Martin Marietta-Lockheed merger is approved". The New York Times. March 16, 1995.
- Mintz, John (April 23, 1996). "Lockheed-Martin Loral Merger May Mean a Loss of Business; McDonnell Douglas Threatens to Cancel Billions in Contracts". The Washington Post.
- Wayne, Leslie (July 17, 1998). "Lockheed cancels Northrop merger, citing U.S. stand". The New York Times.
- "Metric mishap caused loss of NASA orbiter". CNN. September 30, 1999.
- "Math error equals loss of Mars orbiter". Science News. October 9, 1999.
- The Lockheed Martin Corporation | Aviation Articles
- "Contract for BAE". The Times (Times Newspapers). November 28, 2000.
- Parreault, Carl (July 14, 2004). "British aerospace firm buys Sanders". The Union Leader.
- LOCKHEED MARTIN PAYS NASA $7.1 MILLION SETTLEMENT. U.S. Department of Justice, United States Attorney Press Rlease, July 10, 2003.
- Dutt, Jill. "Taking an Engineer's Approach at Lockheed Martin." Washington Post, May 1, 2006.
- "Lockheed Martin Acquires Nantero, Inc.'s Government Business Unit". Taume News. August 14, 2008. Retrieved August 14, 2008.
- Hult, Karla. "Lockheed Martin to Close Eagan Plant, Shed 1,000 Jobs." Kare 11 News, November 19, 2010.
- Washington Post, "Lockheed To Pay $2 million To Settle Lawsuit", January 25, 2011, p. 14.
- "Lockheed Martin Hit by Unspecified Cyber Incident". Fox News. May 28, 2011.
- New York Times: Pentagon to Consider Cyberattacks Acts of War
- "Lockheed Martin cuts 740 jobs". The Indian Express. July 11, 2012. Retrieved July 11, 2012.
- "Lockheed Martin eyes greater share of Indian defence market". 2 August 2012.
- http://articles.chicagotribune.com/2012-11-27/business/sns-rt-us-lockheedmartin-compensationbre8aq1d8-20121127_1_hewson-and-phebe-novakovic-marillyn-hewson-ceo-elect. Missing or empty
- "Federal Contractor Misconduct Database". Project on Government Oversight. Retrieved January 5, 2011.
- "Lockheed Martin Lobbying Expenditure". Center for Responsive Politics. Retrieved January 5, 2011.
- "Lobbying Disclosure Act Database". United States Senate. Retrieved January 5, 2011.
- "Political Disclosures". LockheedMartin.com. Retrieved January 4, 2011.
- Lockheed Martin Employees PAC article
- Garagiola-Powers Affair
- “Leadership.” LockheedMartin.com. http://www.lockheedmartin.com/us/who-we-are/leadership.html
- “What we do.” LockheedMartin.com. http://www.lockheedmartin.com/us/what-we-do.html.
- Cox, James D., "Organizational Challenges in the Integrated Product Team Implementation", Proceedings of the Third Annual International Symposium of the National Council on Systems Engineering, 26–28 July 1993, Arlington, VA. http://libsys.uah.edu/library/incose/Contents/Papers/93/9366.pdf
- “Job search-Labor Relations Representative in Marietta Georgia United States.” LockheedMartin.com. http://lockheedmartin-veterans.jobs/marietta-ga/labor-relations-representative/30654895/job/
- Full Spectrum Leadership.” LockheedMartin.com. http://www.lockheedmartin.com/us/who-we-are/leadership/full-spectrum-leadership.html. Retrieved on October 5, 2012.
- Joyce, Michael and Bettina Schechter, “The Lean Enterprise- A Management Philosophy at Lockheed Martin.” Defense Acquisition Review Journal. pp. 173-181. 2004. http://www.dtic.mil/cgi-bin/GetTRDoc?AD=ADA435279.
- E. Mayo, “Hawthorne and the Western Electric Company,” The Social Problems of an Industrial Civilization, Routledge, 1949, chapter 4. pp. 60-76 http://isites.harvard.edu/fs/docs/icb.topic1074572.files/Mayo_HawthornWesternElec.pdf
- Cox, James D. "Organizational Challenges in the Integrated Product Team Implementation", Proceedings of the Third Annual International Symposium of the National Council on Systems Engineering, 26–28 July 1993, Arlington, VA. http://libsys.uah.edu/library/incose/Contents/Papers/93/9366.pdf
- Walton, Richard E. “From Control to Commitment in the Workplace,” Harvard Business Review, March–April, 1985, pp. 77-84.
- “The Factory Flow, Assembling Major Components,” F35.com. https://f35.com/building-the-f-35/production/the-moving-line.aspx Retrieved on Oct 5, 2012.
- Frank Dobbins Lecture, Sept. 10, 2012 Harvard University
Further reading 
- William D. Hartung. Prophets of War: Lockheed Martin and the Making of the Military-Industrial Complex. Nation Books, 2010. ISBN 9781568584201.
- Lockheed Martin site
- FAS, history and key dates
- Prepar3D(R): Visual flight simulation software development kit for computers
- "A Security Analyst Wins Big in Court". Time magazine
- Lockheed Martin page. Center for Media and Democracy
- "Lockheed Wins Contract to Build NASA's New Spaceship". Washington Post
- "Patents owned by Lockheed Martin". US Patent & Trademark Office. Retrieved December 5, 2005.
- "Jury Slaps Defense Giant for Neglecting National Security". ABC News
- "NASA: Mars Surveyor Was Doomed By Humans". CBS News
- "Lockheed Fined Over Secrets Breach". BBC News
- "Coast Guard Failed to Properly Oversee Contracts, Officials Say". Washington Post
- Ceremonial event planned for final F-22 Raptor