Exhibit 12
Lockheed Martin Corporation
Computation of Ratio of Earnings to Fixed Charges
(in millions, except ratios)
|
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Nine Months
Ended | | | | | | | | | | |
| | | September 24, | | Years Ended December 31, |
| | | 2017 | | 2016 |
| | 2015 |
| | 2014 |
| | 2013 |
| | 2012 |
|
| Earnings | | | | | | | | | | | | | |
| Earnings from continuing operations before income taxes | | $ | 3,577 |
| | | $ | 4,886 |
| | $ | 4,299 |
| | $ | 4,677 |
| | $ | 3,715 |
| | $ | 3,388 |
|
| Interest expense | | 477 |
| | | 663 |
| | 443 |
| | 340 |
| | 350 |
| | 383 |
|
| Undistributed losses (earnings) from equity investees, net | | 5 |
| | | (173 | ) | | (83 | ) | | (91 | ) | | (91 | ) | | 20 |
|
| Portion of rents representative of the interest factor | | 14 |
| | | 31 |
| | 36 |
| | 41 |
| | 48 |
| | 48 |
|
| Earnings from continuing operations before income taxes, as adjusted | | $ | 4,073 |
| | | $ | 5,407 |
| | $ | 4,695 |
| | $ | 4,967 |
| | $ | 4,022 |
| | $ | 3,839 |
|
| Fixed Charges | | | | | | | | | | | | | |
| Interest expense | | $ | 477 |
| | | $ | 663 |
| | $ | 443 |
| | $ | 340 |
| | $ | 350 |
| | $ | 383 |
|
| Portion of rents representative of the interest factor | | 14 |
| | | 31 |
| | 36 |
| | 41 |
| | 48 |
| | 48 |
|
| Total fixed charges | | $ | 491 |
| | | $ | 694 |
| | $ | 479 |
| | $ | 381 |
| | $ | 398 |
| | $ | 431 |
|
| Ratio of Earnings to Fixed Charges | | 8.3 |
| | | 7.8 |
| | 9.8 |
| | 13.0 |
| | 10.1 |
| | 8.9 |
|
The ratio of earnings to fixed charges is a measure of our ability to meet the interest requirements of our outstanding debt securities and leases with current period earnings. A positive ratio indicates that earnings are sufficient to cover our interest requirements for the periods shown.
