<PAGE> 1
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 11-K
ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934 FOR THE FISCAL YEAR ENDED DECEMBER 31, 1995
Commission file number 1-4238
LORAL MASTER SAVINGS PLAN
LORAL CORPORATION
600 Third Avenue
New York, New York 10016
<PAGE> 2
REQUIRED INFORMATION
The statements of net assets available for benefits as of December 31, 1995 and
1994, and the related statement of changes in net assets available for benefits
for the year ended December 31, 1995, together with the Report, and Consent of
Independent Accountants are attached and filed herewith.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Master
Plan Committee has duly caused this annual report to be signed by the
undersigned thereunto duly authorized.
LORAL MASTER SAVINGS PLAN
-------------------------
Plan
Date: June 28, 1996 BY: STEPHEN L. JACKSON
-------------------------
Stephen L. Jackson
Plan Administrator
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<PAGE> 3
REPORT OF INDEPENDENT ACCOUNTANTS
To the Master Plan Committee of Lockheed Martin
Corporation and Participants of the Lockheed
Martin Tactical Systems Master Savings Plan:
We have audited the accompanying statements of net assets available for benefits
of the Loral Master Savings Plan (The "Plan"), which is now known as the
Lockheed Martin Tactical Systems Master Savings Plan, as of December 31, 1995
and 1994, and the related statement of changes in net assets available for
benefits for the year ended December 31, 1995. These financial statements are
the responsibility of the Plan's management. Our responsibility is to express an
opinion on these financial statements based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fairly, in
all material respects, the net assets available for benefits of the Plan as of
December 31, 1995 and 1994, and the changes in net assets available for benefits
for the year ended December 31, 1995, in conformity with generally accepted
accounting principles.
Our audits were performed for the purpose of forming an opinion on the basic
financial statements taken as a whole. The supplemental schedules of assets held
for investment purposes at December 31, 1995 and reportable transactions for the
year ended December 31, 1995, are presented for the purpose of additional
analysis and are not a required part of the basic financial statements but are
supplementary information required by the Department of Labor's Rules and
Regulations for Reporting and Disclosure under the Employee Retirement Income
Security Act of 1974. The fund information in the statement of net assets
available for benefits and the statement of changes in net
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<PAGE> 4
assets available for benefits is presented for purposes of additional analysis
rather than to present the net assets available for benefits and changes in net
assets available for benefits of each fund. The supplemental schedules and fund
information have been subjected to the auditing procedures applied in the audits
of the basic financial statements and, in our opinion, are fairly stated in all
material respects in relation to the basic financial statements taken as a
whole.
New York, New York
June 25, 1996
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<PAGE> 5
LORAL MASTER SAVINGS PLAN
STATEMENT OF NET ASSETS AVAILABLE FOR BENEFITS WITH FUND INFORMATION
AT DECEMBER 31, 1995
(In thousands)
<TABLE>
<CAPTION>
Non-Participant
Directed Participant Directed
------------ -----------------------------------------------------------------------------
Loral Loral IBM Fidelity Fidelity
Corporation Corporation Corporation Retirement Growth
Common Common Common Fidelity Fidelity Money &
Stock Stock Stock Magellan Ginnie Mae Market Income
Fund Fund Fund Fund Portfolio Trust Portfolio
---- ---- ---- ---- --------- ----- ---------
<S> <C> <C> <C> <C> <C> <C> <C>
Assets:
Investments, at fair value
(Notes 1, 2, 4 and 9) $52,203 $49,793 $2,735 $157,290 $21,622 $57,292 $96,622
Investments, at contract value
(Notes 1, 2 and 4)
Receivables (Note 3):
Employer contributions 354 35 10 11 6
Participant contributions 216 548 96 368 227
------- ------- ------ -------- ------- ------- -------
Net assets available for benefits $52,557 $50,009 $2,735 $157,873 $21,728 $57,671 $96,855
======= ======= ====== ======== ======= ======= =======
</TABLE>
<TABLE>
<CAPTION>
Participant Directed
--------------------------------------------------------------------
Fidelity Fidelity Fidelity Fixed
Overseas Intermediate Asset Income Loans
Fund Bond Fund Manager Fund Receivable Total
---- --------- ------- ---- ---------- -----
<S> <C> <C> <C> <C> <C> <C>
Assets:
Investments, at fair value
(Notes 1, 2, 4 and 9) $13,527 $3,707 $21,072 $16,580 $492,443
Investments, at contract value
(Notes 1, 2 and 4) 77,397 77,397
Receivables (Note 3):
Employer contributions 2 1 2 421
Participant contributions 36 34 152 1,677
------- ------ ------- ------- ------- --------
Net assets available for benefits $13,565 $3,742 $21,226 $77,397 $16,580 $571,938
======= ====== ======= ======= ======= ========
</TABLE>
See Notes to Financial Statements.
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<PAGE> 6
LORAL MASTER SAVINGS PLAN
STATEMENT OF NET ASSETS AVAILABLE FOR BENEFITS WITH FUND INFORMATION
AT DECEMBER 31, 1994
(In thousands)
<TABLE>
<CAPTION>
Non-Participant
Directed Participant Directed
-------------- ----------------------------------------------------------------------------
Loral Loral IBM Fidelity Fidelity
Corporation Corporation Corporation Retirement Growth
Common Common Common Fidelity Fidelity Money &
Stock Stock Stock Magellan Ginnie Mae Market Income
Fund Fund Fund Fund Portfolio Trust Portfolio
---- ---- ---- ---- --------- ----- ---------
<S> <C> <C> <C> <C> <C> <C> <C>
Assets:
Investments, at fair value
(Notes 1, 2, 4 and 9) $24,260 $17,274 $4,243 $97,719 $17,398 $39,645 $50,401
Investments, at contract value
(Notes 1, 2 and 4)
Receivables (Note 3):
Employer contributions 469 39 13 21 1
Participant contributions 105 455 112 184 36
------- ------- ------ ------- ------- ------- -------
Total assets 24,729 17,379 4,243 98,213 17,523 39,850 50,438
------- ------- ------ ------- ------- ------- -------
Liabilities:
Other 187
------- ------- ------ ------- ------- ------- -------
Net assets available for benefits $24,729 $17,379 $4,243 $98,213 $17,523 $39,663 $50,438
======= ======= ====== ======= ======= ======= =======
</TABLE>
<TABLE>
<CAPTION>
Participant Directed
-----------------------------------------------------------------
Fidelity Fidelity Fidelity Fixed
Overseas Intermediate Asset Income Loans
Fund Bond Fund Manager Fund Receivable Total
---- --------- ------- ---- ---------- -----
<S> <C> <C> <C> <C> <C> <C>
Assets:
Investments, at fair value
(Notes 1, 2, 4 and 9) $11,129 $783 $9,460 $15,752 $288,064
Investments, at contract value
(Notes 1, 2 and 4) 73,730 73,730
Receivables (Note 3):
Employer contributions 2 1 2 548
Participant contributions 35 6 38 971
------- ---- ------ ------- ------- --------
Total assets 11,166 790 9,500 73,730 15,752 363,313
------- ---- ------ ------- ------- --------
Liabilities:
Other 187
------- ---- ------ ------- ------- --------
Net assets available for benefits $11,166 $790 $9,500 $73,730 $15,752 $363,126
======= ==== ====== ======= ======= ========
</TABLE>
See Notes to Financial Statements.
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<PAGE> 7
LORAL MASTER SAVINGS PLAN
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS WITH FUND INFORMATION
YEAR ENDED DECEMBER 31, 1995
(In thousands)
<TABLE>
<CAPTION>
Non-Participant
Directed Participant Directed
------------- -------------------------------------------------------------------------
Loral Loral IBM Fidelity Fidelity
Corporation Corporation Corporation Retirement Growth
Common Common Common Fidelity Fidelity Money &
Stock Stock Stock Magellan Ginnie Mae Market Income
Fund Fund Fund Fund Portfolio Trust Portfolio
---- ---- ---- ---- --------- ----- ---------
<S> <C> <C> <C> <C> <C> <C> <C>
Additions:
Contributions (Note 3):
Employer $ 7,304 $ 247 $ 440 $ 126 $ 83 $ 80
Participant 2,681 18,624 2,109 14,281 12,340
Investment income
(Notes 2 and 6):
Interest income 4 2 $ 5 49
Dividend income 432 321 8,994 1,300 2,614 4,282
Net appreciation (depreciation) in
fair value of investments (Note 2) 23,082 18,583 1,113 27,314 1,600 16,865
Loan payments, including interest 94 455 2,902 484 1,249 1,250
------- ------- ------- -------- ------- ------- -------
30,916 22,289 1,118 58,274 5,619 18,276 34,817
Deductions:
Benefit payments (Note 5) (2,296) (2,186) (337) (10,257) (2,169) (6,743) (2,444)
Administrative expenses (Note 8) (2) (3) (28) (16) (102) (22)
Transfers among funds, net (445) 9,704 (2,283) 1,197 (112) (3,821) 6,592
Transfer from other plans (Note 1) 3,224 12,504 1,445 12,793 8,877
New loans (345) (398) (6) (2,030) (562) (2,395) (1,403)
Net assets available for benefits
beginning of year 24,729 17,379 4,243 98,213 17,523 39,663 50,438
------- ------- ------- -------- ------- ------- -------
Net assets available for benefits
end of year $52,557 $50,009 $ 2,735 $157,873 $21,728 $57,671 $96,855
======= ======= ======= ======== ======= ======= =======
</TABLE>
<TABLE>
<CAPTION>
Participant Directed
-------------------------------------------------------
Fidelity Fidelity Fidelity Fixed
Overseas Intermediate Asset Income Loans
Fund Bond Fund Manager Fund Receivable Total
---- --------- ------- ---- ---------- -----
<S> <C> <C> <C> <C> <C> <C>
Additions:
Contributions (Note 3):
Employer $ 29 $ 9 $ 31 $ 1 $ 8,350
Participant 3,138 546 3,479 10,648 67,846
Investment income
(Notes 2 and 6):
Interest income 5,113 $ 1,111 6,284
Dividend income 308 123 459 18,833
Net appreciation (depreciation) in
fair value of investments (Note 2) 725 103 1,698 91,083
Loan payments, including interest 349 36 324 1,916 (9,059) 0
------- ------ ------- ------- ------- --------
4,549 817 5,991 17,678 (7,948) 192,396
Deductions:
Benefit payments (Note 5) (542) (125) (661) (3,020) (1,254) (32,034)
Administrative expenses (Note 8) (1) (2) (10) (60) (246)
Transfers among funds, net (2,450) 775 (479) (8,678) 0
Transfer from other plans (Note 1) 959 1,507 7,387 48,696
New loans (116) (20) (502) (2,253) 10,030 0
Net assets available for benefits
beginning of year 11,166 790 9,500 73,730 15,752 363,126
------- ------ ------- ------- ------- --------
Net assets available for benefits
end of year $13,565 $3,742 $21,226 $77,397 $16,580 $571,938
======= ====== ======= ======= ======= ========
</TABLE>
See Notes to Financial Statements.
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<PAGE> 8
LORAL MASTER SAVINGS PLAN
NOTES TO FINANCIAL STATEMENTS
1. Plan Description
The Loral Master Savings Plan (the "Plan") comprises the following
individual qualified defined contribution 401(k) plans of certain
divisions and subsidiaries of Loral Corporation (the "Company"): the
Loral Corporation Deferred Income Savings Plan, the Loral
Electro-Optical Systems, Inc. 401(k) Matching Contribution Plan, the
Conic Corporation Deferred Income Retirement Plan, the Loral/Rolm
Mil-Spec Corp. Retirement Income Savings Plan, the Frequency Sources,
Inc. 401(k) Retirement Savings Plan, the Narda-Western Operations
401(k) Deferred Income Retirement Plan and the Narda Microwave
Supplemental Retirement Savings Plan (the "Individual Plans").
Effective July 1, 1994, the Company established another Individual
Plan, the Loral Federal Systems Deferred Income Retirement Plan (the
"LFS Plan"), pursuant to the purchase of substantially all the assets
and liabilities of IBM Federal Systems Company. At that date, certain
participants of the IBM Corporation Tax Deferred Savings Plan (the "DSP
Plan") became participants of the Plan and cash and other assets of
approximately $172 million in the participants' balances of the DSP
were transferred to the Plan. Effective May 5, 1995, the Company
established another Individual Plan, the Loral Defense Systems SIP,
(the "LDS Plan"), pursuant to the purchase of substantially all the
assets and liabilities of Unisys Defense Systems. At that date, certain
participants of the Unisys Savings Plan (the "USP Plan") became
participants of the Plan and cash and assets of approximately $46
million were rolled over to the Plan.
The Plan is a defined contribution 401(k) plan designed to provide
eligible employees with tax advantaged long-term savings for
retirement. Participants are able to direct their investment to a
combination of eight investment options: Loral Corporation Common Stock
and seven mutual funds managed by Fidelity Management and Research
Company. In addition, participants in the LFS Plan can direct their
investment to the Fixed Income Fund.
The Fixed Income Fund comprises guaranteed investment contracts with
various financial institutions and the Fidelity Short-term Interest
Fund. Fidelity Management Trust Company is the investment manager for
the Fixed Income Fund and as such, places investment contracts with
various financial institutions. The Plan's investment in the Fixed
Income Fund represents unsecured obligations of the financial
institution that issued the investment contract. There are certain
limitations, as defined in the LFS Plan document, with respect to
transfers to or from the Fixed Income Fund. Pending the purchase of the
investment contracts, participants' contributions are invested in the
Fidelity Short-term Interest Fund.
The IBM Corporation Common Stock Fund is a carry-over fund from the DSP
Plan and contributions and reinvestment of dividends into the fund are
not permitted. Effective January 1, 1996 the IBM Common Stock Fund was
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<PAGE> 9
LORAL MASTER SAVINGS PLAN
NOTES TO FINANCIAL STATEMENTS
(Continued)
discontinued and any remaining balance in the fund was transferred to
the Fidelity Retirement Money Market Trust.
Complete descriptions of the Plan and the Individual Plans, including
eligibility requirements and vesting provisions, are contained in the
Plan and the Individual Plan documents.
2. Summary of Significant Accounting Policies
Valuation of Investments
Investments in Loral Corporation Common Stock and IBM Corporation
Common Stock are valued at the last reported quoted market price on the
last business day of the year.
Investments in the Fidelity mutual funds are valued at quoted market
prices which represent the net asset value per share as reported by
Fidelity Management and Research Company.
Effective January 1, 1995, the Plan adopted Statement of Position 94-4
"Reporting of Investment Contracts Held by Health and Welfare Benefit
Plans and Defined-Contribution Pension Plans". In accordance with this
statement, investments in the Fixed Income Fund are stated at contract
value, which approximates fair value, as reported by the issuer. The
average yields for the Fixed Income Fund for 1995 and 1994 were
6.86% and 6.96% respectively. The crediting interest rates of the
investment contracts range from 5.35% to 9.03%. Contract value
represents the principal amount placed with the issuer plus accrued
interest at the contract rate.
Loans receivable from participants are valued at cost which
approximates fair value.
The Plan presents in the statement of changes in net assets the net
appreciation (depreciation) in the fair value of its investments which
consists of the realized gains or losses and the unrealized
appreciation (depreciation) on those investments.
Investment Transactions and Investment Income
Investment transactions are accounted for on a trade date basis.
Dividend income is recorded on the ex-dividend date. Interest income is
accrued as earned.
Benefits Payable
Benefits pertaining to 1995 and 1994, which were paid in 1996 and 1995,
were approximately $2,186,000 and $4,866,000, respectively. These
payments are reported as liabilities on Form 5500.
-8-
<PAGE> 10
LORAL MASTER SAVINGS PLAN
NOTES TO FINANCIAL STATEMENTS
(Continued)
Forfeitures
Participants vest in Employer Contributions in accordance with the
provisions of each Individual Plan. Non-vested Employer Contributions
are forfeited upon termination or withdrawal. These amounts are used to
reduce future Employer Contributions. Forfeitures for the year ended
December 31, 1995 were approximately $302,000.
Reclassifications
The 1994 statement of net assets available for plan benefits has been
reclassified to separately present information regarding loans
receivable from participants.
3. Contributions
All active participants may contribute 2% to 6% of their cash
compensation, as defined, to the Plan as a "Basic Contribution." In
addition, participants who are making Basic Contributions at the
maximum rate may elect to contribute an additional amount ranging up to
11% of their cash compensation as a "Voluntary Contribution", subject
to Internal Revenue Code ("IRC") limitations. Participants'
contributions vest immediately and can only be withdrawn pursuant to
the appropriate provisions of the IRC.
The Company will contribute amounts ranging from 20% to 100% of the
participants' Basic Contribution in accordance with the provisions of
the Individual Plans as an Employer Contribution. The amount of the
contribution, the type of the contribution, (i.e. cash or company
stock) the allocation to the various investment funds and limits on the
contributions credited to a participant are governed by the Individual
Plan documents.
As of December 31, 1995 and 1994, there were approximately 18,200 and
13,300 participants in the Plan, respectively, some of whom have
elected to invest in more than one fund.
Although the Company has not expressed an intent to do so, the Company
can discontinue its contributions and or terminate the Plan at any
time, subject to the provisions of the Employee Retirement Income
Security Act of 1974 ("ERISA"). In the event of a discontinuance and or
termination of the Plan, participants will become 100 percent vested
and the net assets of the Plan will be allocated among the participants
and their beneficiaries in accordance with the provisions of ERISA.
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<PAGE> 11
LORAL MASTER SAVINGS PLAN
NOTES TO FINANCIAL STATEMENTS
(Continued)
4. Investments
Plan investments at December 31, 1995 and 1994 were as follows:
<TABLE>
<CAPTION>
1995 1994
---- ----
(In thousands)
--------------
<S> <C> <C>
Investments at fair value:
Loral Corporation Common Stock $101,996* $ 41,534*
IBM Corporation Common Stock 2,735 4,243
Fidelity Magellan Fund 157,290* 97,719*
Fidelity Ginnie Mae Portfolio 21,622* 17,398*
Fidelity Retirement Money Market Trust 57,292* 39,645*
Fidelity Growth & Income Portfolio 96,622* 50,401*
Fidelity Overseas Fund 13,527* 11,129*
Fidelity Intermediate Bond Fund 3,707 783
Fidelity Asset Manager 21,072* 9,460*
-------- --------
$475,863 $272,312
======== ========
Investments at contract value:
Fixed Income Fund $ 77,397* 73,730*
======== ========
</TABLE>
* Represents greater than 5% of total net assets available for plan
benefits at beginning of the year.
5. Benefit Payments
Upon termination, participants receive the vested portion of their
account balance as soon as practicable after termination. Terminated
participants who have an account balance in excess of $3,500 may elect
to leave their account balance in the Plan and withdraw it at any time
up to age 65.
Generally a 10% penalty will be imposed on certain withdrawals made
before the participant reaches age 59 1/2.
Assets in a participant's account may be withdrawn only for financial
hardship before termination of employment or before reaching age 59
1/2. Financial hardship is determined pursuant to provisions of the
IRC.
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<PAGE> 12
LORAL MASTER SAVINGS PLAN
NOTES TO FINANCIAL STATEMENTS
(Continued)
6. Loans
The Plan generally provides for loans to active participants. The
maximum loan generally allowed to each participant is the lesser of (1)
$50,000 less the highest outstanding loan balance over the prior year
or (2) 50% of the vested value of the participant's account in the
Plan. The minimum loan amount is $1,000. The Individual Plan
Administrative Committees establish the interest rate and the repayment
terms, both of which are fixed for the term of the loan. The interest
rate is based on the prime interest rate, as defined, plus one percent.
Repayment periods generally range from one to four years, with a nine
year maximum for loans used in connection with the purchase of a
principal residence, except for one of the Individual Plans where
repayment periods range from five to ten years. Loan repayments are
made through payroll deductions, with principal and interest being
credited to the participants' fund accounts. Repayment of the entire
balance is permitted at any time.
7. Tax Status
The Internal Revenue Service has determined on February 12, 1996, that
the Plan is a qualified trust under Section 401(a) of the IRC and is
therefore exempt from Federal income taxes under Section 501(a) of the
IRC. The Plan administrator believes that the Plan is designed and is
currently being operated in compliance with the applicable regulations
of the IRC.
8. Administrative Expenses
As provided for in the Individual Plan documents, certain
administrative expenses are paid by the Plan. The remaining expenses
are paid by the Company.
9. Financial Instruments
Certain Fidelity investment options ("Portfolios") may enter into
forward foreign currency contracts to protect securities and related
receivables and payables against fluctuations in future foreign
currency rates. A forward contract is an agreement to buy or sell
currencies of different countries on a specified future date at a
specified rate. Risks associated with such contracts include the
movement in the value of the foreign currency relative to the U.S.
dollar and the ability of the counterparty to perform. The market value
of the contract will fluctuate with changes in currency exchange rates.
A Portfolio invests in futures contracts solely for the purposes of
hedging its existing portfolio securities, or securities the Portfolio
intends to purchase, against fluctuations in value caused by changes in
prevailing market interest rates. The use of futures transactions
involves the risk of imperfect correlation in movements in the price of
futures contracts, interest rates and the underlying hedged assets, and
the possible inability of counterparties to meet the term of their
contracts. When the contract is closed, the Portfolio
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<PAGE> 13
LORAL MASTER SAVINGS PLAN
NOTES TO FINANCIAL STATEMENTS
(Continued)
records a realized gain or loss equal to the difference between the
value of the contract at the time it was opened and the value at the
time when it was closed.
10. Risks and Uncertainties
The plan provides for various investment options in any combination of
stocks, bonds, fixed income securities, mutual funds and other
investment securities. Investment securities are exposed to various
risks, such as interest rate, market and credit. Due to the level of
risk associated with certain investment securities and the level of
uncertainty related to changes in the value of investment securities,
it is at least reasonably possible that changes in risks in the near
term would materially affect participants' account balances and the
amounts reported in the statement of net assets available for plan
benefits and the statement of changes in net assets available for plan
benefits.
11. Subsequent Event
Effective April 23, 1996, Lockheed Martin Corporation ("Lockheed
Martin") acquired substantially all the outstanding shares of Loral
Corporation common stock for $38.00 per share plus one share of Loral
Space & Communications, Ltd. common stock. The cash received was
invested in the Fidelity Retirement Money Market Trust and participants
were able to transfer a part or all of these proceeds into any of the
other available investment options in the Plan. Participants can make
no further investment in Loral Space & Communications, Ltd. common
stock. Subsequently, the Plan name has been changed to the Lockheed
Martin Tactical Systems Master Savings Plan. Lockheed Martin plans to
continue operating the Plan in accordance with the current Plan
documents.
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<PAGE> 14
LORAL MASTER SAVINGS PLAN
ITEM 27a - SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES
DECEMBER 31, 1995
<TABLE>
<CAPTION>
FACE AMOUNT
OR FAIR/CONTRACT
DESCRIPTION SHARES/UNITS VALUE COST
----------- ------------ ----- ----
(In thousands) (In thousands)
<S> <C> <C> <C>
Loral Corporation Common Stock 3,101,094 $ 101,996 $ 47,546
IBM Common Stock 29,931 2,735 1,836
* Fidelity Magellan Fund 1,829,381 157,290 130,339
* Fidelity Ginnie Mae Portfolio 1,985,472 21,622 21,090
* Fidelity Retirement Money Market Trust 57,292,039 57,292 57,293
* Fidelity Growth & Income Portfolio 3,571,940 96,622 81,934
* Fidelity Overseas Fund 465,332 13,527 13,150
* Fidelity Intermediate Bond Fund 356,074 3,707 3,648
* Fidelity Asset Manager 1,329,442 21,072 19,969
* Fixed Income Fund:
Fidelity Short-term Interest Fund 1,288,071 1,288 1,288
Guaranteed Investment Contracts:
Combined Insurance,8.30%, due September 30, 1999 3,359,998 3,359 3,150
Continential Assurance, 7.04%, March 29, 1996 5,473,826 5,473 5,000
J.P. Morgan ABS, 7.28%, due January 15, 1996 3,621,130 3,621 3,435
Metropolitan Life, 9.03%, due January 2, 1996 3,127,412 3,127 2,575
New York Life, 7.56%, due June 30, 1996 10,589,951 10,589 9,429
New York Life, 5.35%, due June 30, 1996 13,967,307 13,967 12,872
Peoples Security Life ABS, 8.13%, due January 15, 1996 3,437,294 3,437 3,172
Peoples Security Life, 7.24%, due March 31, 1999 6,653,101 6,653 6,080
Principal Mutual, 7.25%, due December 31, 1999 6,000,894 6,000 5,700
Protective Life, 7.15%, due June 30, 1998 775,464 775 700
Prudential Ins. Co. of Amer., 7.03%, due July 1, 1996 10,553,423 10,553 9,482
Prudential Ins. Co. of Amer., 6.49%, due April 1, 1996 8,555,892 8,555 7,767
Participant Loans (7% to 12%) 16,580
--------- ---------
Total $ 569,840 $ 447,455
========= =========
</TABLE>
* Party in Interest
-13-
<PAGE> 15
LORAL MASTER SAVINGS PLAN
ITEM 27d - SCHEDULE OF REPORTABLE TRANSACTIONS
FOR THE YEAR ENDED DECEMBER 31, 1995
(IN THOUSANDS)
<TABLE>
<CAPTION>
GAIN NUMBER
PURCHASE SELLING COST OF (LOSS) OF
DESCRIPTION PRICE PRICE ASSET ON SALE PURCH.
----------- ----- ----- ----- ------- ------
<S> <C> <C> <C> <C> <C>
Loral Corporation Common Stock $26,618 766
* Fidelity Magellan Fund 69,459 1,230
* Fidelity Ginnie Mae Portfolio 7,805 866
* Fidelity Retirement Money Market Trust 48,280 1,153
* Fidelity Growth & Income Portfolio 39,410 877
* Fidelity Overseas Fund 7,375 737
* Fidelity Intermediate Bond Fund 3,548 516
* Fidelity Asset Manager 14,699 712
* Fixed Income Fund 54,251 170
</TABLE>
* Party in Interest
-14-
<PAGE> 16
LORAL MASTER SAVINGS PLAN
ITEM 27D - SCHEDULE OF REPORTABLE TRANSACTIONS
FOR THE YEAR ENDED DECEMBER 31, 1995
(IN THOUSANDS)
(CONTINUED)
<TABLE>
<CAPTION>
GAIN NUMBER
PURCHASE SELLING COST OF (LOSS) OF
DESCRIPTION PRICE PRICE ASSET ON SALE SALES
----------- ----- ----- ----- ------- -----
<S> <C> <C> <C> <C>
Loral Corporation Common Stock $ 7,820 $ 4,415 $3,405 454
IBM Common Stock 2,661 1,917 744 28
* Fidelity Magellan Fund 37,204 31,830 5,374 905
* Fidelity Ginnie Mae Portfolio 5,180 5,192 (12) 507
* Fidelity Retirement Money Market Trust 30,632 30,632 0 945
* Fidelity Growth & Income Portfolio 10,053 9,254 799 463
* Fidelity Overseas Fund 5,703 5,721 (18) 471
* Fidelity Intermediate Bond Fund 727 731 (4) 145
* Fidelity Asset Manager 4,784 4,767 17 416
* Fixed Income Fund 55,966 55,966 0 221
</TABLE>
* Party in Interest
-15-
<PAGE> 17
CONSENT OF INDEPENDENT ACCOUNTANTS
We consent to the incorporation by reference in the registration statement of
Lockheed Martin Corporation on Form S-8 (File No. 33-06485) of our report dated
June 25, 1996, on our audits of the financial statements and supplemental
schedules of the Loral Master Savings Plan as of December 31, 1995 and 1994,
which report is included in this Annual Report on Form 11-K.
New York, New York
June 25,1996
-16-
