What is a "blackout period" in the context of this filing?

A blackout period is a temporary restriction imposed on participants of an employee benefit plan, preventing them from engaging in transactions related to their plan accounts. In this case, it's due to a change in plan administration, and it also restricts insider trading of company stock.

Why is Lockheed Martin implementing this blackout period?

The blackout period is a necessary administrative step to facilitate a planned change in the administration of Lockheed Martin's employee savings and benefit plans from the current administrator to Empower Retirement, which will take effect on January 1, 2019.

Will I be able to access my Lockheed Martin stock or make changes to my investments during the blackout period?

No. During the blackout period (December 26, 2018, 4:00 PM ET to January 9, 2019, 8:00 AM ET), participants will be unable to access their plan accounts to transfer or diversify investments, change investment elections, or obtain loans, withdrawals, or distributions.

Does this blackout period affect company executives and directors?

Yes. As required by the Sarbanes-Oxley Act, directors and executive officers are also notified that they will be generally prohibited from purchasing, selling, or otherwise acquiring or transferring Lockheed Martin common stock or derivative securities during the blackout period, if such securities were acquired in connection with their service or employment.

LMT 8-K SEC Disclosure — Oct 29, 2018

Summary

Lockheed Martin Corporation (LMT) announced a temporary suspension of trading for participants in its various employee benefit plans, effective from December 26, 2018, to January 9, 2019. This "blackout period" is a standard procedure necessitated by a planned change in the administration of these plans to Empower Retirement, commencing January 1, 2019. During this period, participants will be temporarily unable to make transactions within their plan accounts, including transfers, diversification, loans, withdrawals, or distributions. Importantly, this blackout period also imposes trading restrictions on LMT's directors and executive officers regarding company stock and related derivative securities, as mandated by the Sarbanes-Oxley Act. Investors should note that this filing primarily concerns administrative changes to employee benefit plans and does not indicate any operational or financial distress for the company.

Key Highlights

1LMT is implementing a temporary "blackout period" for its employee savings and benefit plans.
2The blackout period is scheduled to run from December 26, 2018, to January 9, 2019.
3This action is linked to a planned transition of plan administration to Empower Retirement, effective January 1, 2019.
4During the blackout, participants cannot access their plan accounts for transactions like transfers, loans, or withdrawals.
5Directors and executive officers are also subject to restrictions on trading LMT stock during this period, as per Sarbanes-Oxley Act regulations.
6The filing does not disclose any material financial changes or operational issues for Lockheed Martin.

LOCKHEED MARTIN CORP 8-K Report, Temporary Suspension of Trading Under Employee Benefit Plans (Oct 29, 2018)

Summary

Key Highlights

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