Lockheed Martin (LMT) 10-Q 2017 Q2 Quarterly report

Exhibit 12

Lockheed Martin Corporation

Computation of Ratio of Earnings to Fixed Charges

(in millions, except ratios)

	Six Months Ended June 25,
			Years Ended December 31,
	2017		2016		2015		2014		2013		2012
Earnings
Earnings from continuing operations before income taxes	$	2,318	$	4,886	$	4,299	$	4,677	$	3,715	$	3,388
Interest expense		315		663		443		340		350		383
Undistributed earnings from equity investees, net		42		(173)		(83)		(91)		(91)		20
Portion of rents representative of the interest factor		9		31		36		41		48		48
Earnings from continuing operations before income taxes, as adjusted	$	2,684	$	5,407	$	4,695	$	4,967	$	4,022	$	3,839
Fixed Charges
Interest expense	$	315	$	663	$	443	$	340	$	350	$	383
Portion of rents representative of the interest factor		9		31		36		41		48		48
Total fixed charges	$	324	$	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 current interest requirements.