This excerpt taken from the LMT PRE 14A filed Feb 27, 2009.
LTIP 2008-2010 Targets Opportunities (Column (c), (d), (e) of Grants of Plan-Based Awards Table)
In January 2008, the Compensation Committee established the 2008-2010 LTIP targets for each NEO. The targets were calculated generally by multiplying total LTI economic value by 30% (weighting assigned to the LTIP element) assigned to the NEO and dividing it by the LTIP discount. The discount takes into account performance risk and potential forfeiture. For the 2008-2010 LTIP performance cycle, the discount was 75%.