Exhibit 12
Lockheed Martin Corporation
Computation of Ratio of Earnings to Fixed Charges
(in millions, except ratios)
Nine Months Ended September 25, | Nine Months Ended September 27, | |||||||||
2016 | 2015 | |||||||||
Earnings | ||||||||||
Earnings from continuing operations before income taxes | $ | 3,631 | $ | 3,317 | ||||||
Interest expense | 492 | 301 | ||||||||
Undistributed earnings from equity investees, net | (113) | (63) | ||||||||
Portion of rents representative of the interest factor | 12 | 21 | ||||||||
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Earnings from continuing operations before income taxes, as adjusted | $ | 4,022 | $ | 3,576 | ||||||
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Fixed Charges | ||||||||||
Interest expense | $ | 492 | $ | 301 | ||||||
Portion of rents representative of the interest factor | 12 | 21 | ||||||||
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Total fixed charges | $ | 504 | $ | 322 | ||||||
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Ratio of Earnings to Fixed Charges | 8.0 | 11.1 | ||||||||
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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 positive ratio indicates that earnings are sufficient to cover our current interest requirements.