Lockheed Martin Corp., Bethesda, Md., still expects a pension expense of $80 million in the third quarter and $305 million for the year, despite a "favorable" return on pension assets for the first nine months of 2003. Pension income was $64 million in the third quarter of 2002. The company also anticipates pension expenses between $400 million and $550 million in 2004, depending on the actuarial assumptions it uses. Lockheed Martin is using a 6.75% discount rate and return of 8.5% on pension assets, but warned these assumptions could be lowered for 2004. Lockheed has $17.7 billion in pension assets.