Exhibit 12
Lockheed Martin Corporation
Computation of Ratio of Earnings to Fixed Charges
(in millions, except ratios)
Years ended December 31, | ||||||||||||||||||||
2014 | 2013 | 2012 | 2011 | 2010 | ||||||||||||||||
Earnings | ||||||||||||||||||||
Earnings from continuing operations before income taxes | $ | 5,258 | $ | 4,155 | $ | 4,072 | $ | 3,631 | $ | 3,778 | ||||||||||
Interest expense | 340 | 350 | 383 | 354 | 345 | |||||||||||||||
Undistributed earnings from equity investees, net | (91 | ) | (91 | ) | 20 | (104 | ) | (81 | ) | |||||||||||
Portion of rents representative of the interest factor | 41 | 48 | 48 | 59 | 48 | |||||||||||||||
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Earnings from continuing operations before income taxes, as adjusted | $ | 5,548 | $ | 4,462 | $ | 4,523 | $ | 3,940 | $ | 4,090 | ||||||||||
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Fixed Charges | ||||||||||||||||||||
Interest expense | $ | 340 | $ | 350 | $ | 383 | $ | 354 | $ | 345 | ||||||||||
Portion of rents representative of the interest factor | 41 | 48 | 48 | 59 | 48 | |||||||||||||||
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Total fixed charges | $ | 381 | $ | 398 | $ | 431 | $ | 413 | $ | 393 | ||||||||||
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Ratio of Earnings to Fixed Charges | 14.6 | 11.2 | 10.5 | 9.5 | 10.4 | |||||||||||||||
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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 high ratio indicates that earnings are sufficient to cover our current interest requirements.