Landing (STOVL) variant on January 20, 2012. Saying the F-35 “remains essential’’ for future air superiority, the Secretary’s action refl ects the talent and tenacity of the men and women working to make this program a success. 

We exceeded F-35 flight test and test point goals in 2011 with 972 test flights against a plan of 872, and we tallied 7,823 test points against a plan of 6,622. We also completed the Static Structural Testing, which verified the structural integrity of the airframe, ahead of schedule. On October 3, we saw the picture-perfect vertical landing of the STOVL variant on the deck of the USS WASP, a significant milestone for the F-35 program. A second test jet landed on deck a few days later, and over 18 days the two aircraft completed 72 short takeoffs and vertical landings. We invite you to view the video of these historic flights and other F-35 milestones at our website, www.F35.com. 

In December, Japan’s Ministry of Defense chose the F-35 as that nation’s next generation fi ghter aircraft. Japan joins Israel as a Foreign Military Sales customer, and the United States and eight partner countries on this 11-nation program. 

Overall, we continued to grow our international sales in 2011 with orders to upgrade armored fighting vehicles for the United Kingdom, contracts for a combined 30 F-16 aircraft to Iraq and Oman, and the first international order to produce the Terminal High Altitude Area Defense (THAAD) missile defense system for export to the United Arab Emirates. 

In 2011, we also witnessed the last Space Shuttle mission. For 30 years – in partnership with NASA – Lockheed Martin demonstrated a dedication to excellence on the Shuttle program, supplying components, payloads, and every one of the external fuel tanks that boosted the spacecraft into orbit. The next adventure in space exploration has already begun, and we are once again at the forefront with our Orion Multi-Purpose Crew Vehicle. 

Some of our other notable achievements in 2011 on behalf of our customers in defense and civil government agencies in the United States and worldwide include: 

• The Missile Defense Agency and U.S. Army achieved the first-ever simultaneous intercept of two targets using two THAAD interceptors in an operational test. Since 2005, the program has completed 12 flight tests with nine-for-nine intercepts. This capability is critical to a robust missile deterrent and defense. 

• We began construction on our third Littoral Combat Ship (LCS). With each ship, the team continues to drive costs down through efficiencies, design stability, and supplier partnerships. In addition, our second LCS, the Fort Worth, is on-cost and on-schedule for delivery to the U.S. Navy in 2012. Aside from its success in drug smuggling interdiction, the LCS will play an important role in the Asia-Pacific region as part of the Defense Department’s new Strategic Guidance. 

• We achieved Initial Operating Capability for the FBI’s Next Generation Identifi cation System, which will help law enforcement take more criminals off the streets. 

• K-MAX, our rugged and versatile unmanned cargo aircraft system, was deployed to Afghanistan. During the first six weeks of operation, the two aircraft delivered more than 100,000 pounds of cargo to forward operating bases. Lockheed Martin and partner Kaman Aerospace transformed this helicopter into an unmanned system that can fl y through hostile territory for the battlefi eld resupply mission. 

• We are in production on 29 additional Persistent Threat Detection Systems (PTDS) for the U.S. Army to support and protect coalition forces in Afghanistan. 

