Exhibit 12.1
LOCKHEED MARTIN CORPORATION
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(In millions, except ratio)
Nine Months Ended September 30 | Years Ended December 31 | ||||||||||||||||||||||||||||||
2006 | 2005 | 2005 | 2004 | 2003 | 2002 | 2001 | 2000 | ||||||||||||||||||||||||
Earnings before income taxes | $ | 2,543 | $ | 1,823 | $ | 2,616 | $ | 1,664 | $ | 1,532 | $ | 577 | $ | 133 | $ | 186 | |||||||||||||||
Interest expense | 276 | 277 | 370 | 425 | 487 | 585 | 700 | 919 | |||||||||||||||||||||||
Losses (undistributed earnings) of 50% and less than 50% owned companies, net | (10 | ) | (19 | ) | (9 | ) | 35 | (50 | ) | (8 | ) | 85 | (3 | ) | |||||||||||||||||
Portion of rents representative of an interest factor | 44 | 37 | 52 | 46 | 49 | 46 | 46 | 57 | |||||||||||||||||||||||
Amortization of debt premium and discount, net | (3 | ) | (3 | ) | (5 | ) | (5 | ) | — | 2 | 2 | (7 | ) | ||||||||||||||||||
Adjusting earnings before income taxes | $ | 2,850 | $ | 2,115 | $ | 3,024 | $ | 2,165 | $ | 2,018 | $ | 1,202 | $ | 966 | $ | 1,152 | |||||||||||||||
FIXED CHARGES | |||||||||||||||||||||||||||||||
Interest expense | $ | 276 | $ | 277 | $ | 370 | $ | 425 | $ | 487 | $ | 585 | $ | 700 | $ | 919 | |||||||||||||||
Portion of rents representative of an interest factor | 44 | 37 | 52 | 46 | 49 | 46 | 46 | 57 | |||||||||||||||||||||||
Amortization of debt premium and discount, net | (3 | ) | (3 | ) | (5 | ) | (5 | ) | — | 2 | 2 | (7 | ) | ||||||||||||||||||
Capitalized interest | — | — | — | — | — | — | — | 1 | |||||||||||||||||||||||
Total fixed charges | $ | 317 | $ | 311 | $ | 417 | $ | 466 | $ | 536 | $ | 633 | $ | 748 | $ | 970 | |||||||||||||||
RATIO OF EARNINGS TO FIXED CHARGES | 9.0 | 6.8 | 7.3 | 4.6 | 3.8 | 1.9 | 1.3 | 1.2 | |||||||||||||||||||||||