Huntington Ingalls Industries (HII) 10-K 2016 FY Annual report

Exhibit 12.1

RATIO OF EARNINGS TO FIXED CHARGES

	Year Ended December 31
($ in millions)	2016			2015(1)			2014(2)			2013		2012
Earnings:
Earnings from continuing operations before income taxes	$	784		$	632		$	507		$	394	$	241
Amortization of Capitalized Interest	1			2			1			2		2
Interest Capitalized	(2		)	(2		)	(2		)	—		(2		)
Net adjustment for earnings from affiliates	4			—			(2		)	2		2
Fixed Charges:
Interest expensed and capitalized, including amortization of debt issuance	76			139			151			118		119
Portion of rental expenses on operating leases deemed to be representative of the interest factor (3)	23			21			18			15		15
Total Earnings	$	886		$	792		$	673		$	531	$	377
Fixed Charges:	$	99		$	160		$	169		$	133	$	134
Ratio of earnings to fixed charges	8.9			5.0			4.0			4.0		2.8

⁽¹⁾ For the year ended December 31, 2015, the Company recorded non-cash goodwill impairment charges of $75 million and a non-cash intangible asset impairment charge of $27 million, as well as $44 million of interest expense related to the early extinguishment of debt.

⁽²⁾ For the year ended December 31, 2014, the Company recorded a non-cash goodwill impairment charge of $47 million and $37 million of interest expense related to the early extinguishment of debt.

⁽³⁾ The proportion of rental expense deemed to be representative of the interest factor is one third.