EX-12 2 d259549dex12.htm EX-12

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 |
Earnings from continuing operations before income taxes, as adjusted |  |  | $ | 4,022 |  |  |  | $ | 3,576 |
Fixed Charges |  |  |  |  |  |  |  |  |  |
Interest expense |  |  | $ | 492 |  |  |  | $ | 301 |
Portion of rents representative of the interest factor |  |  |  | 12 |  |  |  |  | 21 |
Total fixed charges |  |  | $ | 504 |  |  |  | $ | 322 |
Ratio of Earnings to Fixed Charges |  |  |  | 8.0 |  |  |  |  | 11.1 |

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.