EX-12.(A) 9 v51970exv12wxay.htm EX-12.(A) exv12wxay
 
NORTHROP GRUMMAN CORPORATION
 
 
 
Exhibit 12(a)
 
NORTHROP GRUMMAN CORPORATION
COMPUTATION OF RATIOS OF EARNINGS TO FIXED CHARGES
 
                                                         
        Three Months
        Ended
    Year Ended December 31,   March 31,
$ in millions   2008(1)   2007   2006   2005   2004   2009   2008
Earnings:
                                                       
                                                         
(Loss) earnings from continuing operations before income taxes
  $ (368 )   $ 2,698     $ 2,316     $ 2,092     $ 1,596     $ 590     $ 409  
                                                         
Fixed Charges:
                                                       
Interest expense, including amortization of debt premium
    295       336       347       388       431       73       77  
Portion of rental expenses on operating leases deemed to be representative of the interest factor:
    195       195       183       170       151       47       46  
                                                         
Earnings from continuing operations before income taxes and fixed charges
    122       3,229       2,846       2,650       2,178       710       532  
                                                         
Fixed Charges:
    490       531       530       558       582       120       123  
                                                         
                                                         
Ratio of earnings to fixed charges(1)
    —       6.1       5.4       4.7       3.7       5.9       4.3  
                                                         
 
(1) For the year ended December 31, 2008, the company’s earnings were insufficient to cover fixed charges by $368 million. This loss was entirely due to the non-cash goodwill impairment charge of $3.1 billion recorded during the fourth quarter at Shipbuilding and Aerospace Systems.