EX-12 6 d360426dex12.htm EX-12

Exhibit 12

Lockheed Martin Corporation

Computation of Ratio of Earnings to Fixed Charges

(in millions, except ratios)

|  | Quarter ended |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  | March 26, |  |  | Years ended December 31, |
|  | 2017 |  |  | 2016 |  |  | 2015 |  |  | 2014 |  |  | 2013 |  |  | 2012 |
Earnings |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Earnings from continuing operations before income taxes |  | $ | 995 |  |  | $ | 4,886 |  |  | $ | 4,299 |  |  | $ | 4,677 |  |  | $ | 3,715 |  |  | $ | 3,388 |
Interest expense |  |  | 155 |  |  |  | 663 |  |  |  | 443 |  |  |  | 340 |  |  |  | 350 |  |  |  | 383 |
Undistributed earnings from equity investees, net |  |  | 68 |  |  |  | (173) |  |  |  | (83) |  |  |  | (91) |  |  |  | (91) |  |  |  | 20 |
Portion of rents representative of the interest factor |  |  | 6 |  |  |  | 31 |  |  |  | 36 |  |  |  | 41 |  |  |  | 48 |  |  |  | 48 |
Earnings from continuing operations before income taxes, as adjusted |  | $ | 1,224 |  |  | $ | 5,407 |  |  | $ | 4,695 |  |  | $ | 4,967 |  |  | $ | 4,022 |  |  | $ | 3,839 |
Fixed Charges |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Interest expense |  | $ | 155 |  |  | $ | 663 |  |  | $ | 443 |  |  | $ | 340 |  |  | $ | 350 |  |  | $ | 383 |
Portion of rents representative of the interest factor |  |  | 6 |  |  |  | 31 |  |  |  | 36 |  |  |  | 41 |  |  |  | 48 |  |  |  | 48 |
Total fixed charges |  | $ | 161 |  |  | $ | 694 |  |  | $ | 479 |  |  | $ | 381 |  |  | $ | 398 |  |  | $ | 431 |
Ratio of Earnings to Fixed Charges |  |  | 7.6 |  |  |  | 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.