Exhibit 12.1
Huntington Ingalls Industries, Inc.
Computation of Ratio of Earnings to Fixed Charges
$ in millions | Nine Months Ended September 30 | Year Ended December 31 | ||||||||||||||||||||||||||
| 2011(1) | 2010 | 2010 | 2009 | 2008(2) | 2007 | 2006 | ||||||||||||||||||||||
Earnings: | ||||||||||||||||||||||||||||
Earnings from continuing operations before income taxes | $ | (89 | ) | $ | 114 | $ | 206 | $ | 176 | (2,394 | ) | $ | 411 | $ | 300 | |||||||||||||
Amortization of Capitalized Interest | 2 | 3 | 4 | 3 | 3 | 3 | 2 | |||||||||||||||||||||
Interest Capitalized | (2 | ) | (2 | ) | (3 | ) | (8 | ) | (4 | ) | (3 | ) | (4 | ) | ||||||||||||||
Fixed Charges: | ||||||||||||||||||||||||||||
Interest expensed and capitalized, including amortization of debt premium | 77 | 32 | 43 | 44 | 44 | 45 | 35 | |||||||||||||||||||||
Portion of rental expenses on operating leases deemed to be representative of the interest factor (3) | 10 | 10 | 15 | 16 | 14 | 13 | 12 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Total Earnings | $ | (2 | ) | $ | 157 | $ | 265 | $ | 231 | $ | (2,337 | ) | $ | 469 | $ | 345 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Fixed Charges: | $ | 87 | $ | 42 | $ | 58 | $ | 60 | $ | 58 | $ | 58 | $ | 47 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Ratio of earnings to fixed charges | — | 3.7 | 4.6 | 3.9 | — | 8.1 | 7.3 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
| (1) | For the nine months ended September 30, 2011, the company’s earnings were insufficient to cover fixed charges by $89 million. This loss was primarily due to the preliminary non-cash goodwill impairment charge of $300 million recorded during the third quarter. |
| (2) | For the year ended December 31, 2008, the company’s earnings were insufficient to cover fixed charges by $2,395 million. This loss was primarily due to the non-cash goodwill impairment charge of $2,490 million recorded during the fourth quarter. |
| (3) | The proportion of rental expense deemed to be representative of the interest factor is one third. |