EX-12 5 ex12q42017.htm EXHIBIT 12
Exhibit 12
Lockheed Martin Corporation
Computation of Ratio of Earnings to Fixed Charges
(in millions, except ratios)

|  | Years ended December 31,
|  | 2017 |  |  | 2016 |  |  | 2015 |  |  | 2014 |  |  | 2013 |
Earnings |  |  |  |  |  |  |  |  |  |
Earnings from continuing operations before income taxes |  | $ | 5,269 |  |  | $ | 4,886 |  |  | $ | 4,299 |  |  | $ | 4,677 |  |  | $ | 3,715 |
Interest expense |  | 651 |  |  | 663 |  |  | 443 |  |  | 340 |  |  | 350 |
Undistributed earnings from equity investees, net |  | (3 | ) |  | (173 | ) |  | (83 | ) |  | (91 | ) |  | (91 | )
Portion of rents representative of the interest factor |  | 25 |  |  | 31 |  |  | 36 |  |  | 41 |  |  | 48 |
Earnings from continuing operations before income taxes, as adjusted |  | $ | 5,942 |  |  | $ | 5,407 |  |  | $ | 4,695 |  |  | $ | 4,967 |  |  | $ | 4,022 |
Fixed Charges |  |  |  |  |  |  |  |  |  |
Interest expense |  | $ | 651 |  |  | $ | 663 |  |  | $ | 443 |  |  | $ | 340 |  |  | $ | 350 |
Portion of rents representative of the interest factor |  | 25 |  |  | 31 |  |  | 36 |  |  | 41 |  |  | 48 |
Total fixed charges |  | $ | 676 |  |  | $ | 694 |  |  | $ | 479 |  |  | $ | 381 |  |  | $ | 398 |
Ratio of Earnings to Fixed Charges |  | 8.8 |  |  | 7.8 |  |  | 9.8 |  |  | 13.0 |  |  | 10.1 |

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 high ratio indicates that earnings are sufficient to cover our current interest requirements.