To: E_K_S who wrote (50738 ) 2/1/2013 1:13:46 AM From: Spekulatius Read Replies (2) | Respond to I don't think that LMT is a short at this point. The selloff is probably overdone. I don't like the pension issues. this is what they are saying in their latest 10q:Our postretirement benefit plans are measured annually at year-end and are largely dependent upon several key economic assumptions. If we assume a discount rate at the end of 2012 is 4.0%, a 75 basis points decrease from 2011, actual investment returns for 2012 are 8.0%, pension funding is comparable to 2012, and all other assumptions are held constant, we expect the amount of the qualified defined benefit pension plan obligation we record at the end of 2012 to increase materially, resulting in a non-cash, after-tax decrease in our stockholders’ equity of approximately $3.0 billion at the end of 2012. Such a decrease could result in us reporting a stockholders’ deficit at year-end. We do not anticipate that this would affect our ability to comply with our debt covenants nor hinder our ability to pay dividends. With these assumptions, we expect our 2013 non-cash FAS/CAS pension expense adjustment would be approximately $700 million.
