EX-12 5 ex12q42017.htm EXHIBIT 12 Exhibit


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.