EX-12.(A) 3 v52989exv12wxay.htm EX-12.(A) exv12wxay
Exhibit 12(a)
 
NORTHROP GRUMMAN CORPORATION
COMPUTATION OF RATIOS OF EARNINGS TO FIXED CHARGES
 
                                                                       
                                    Six Months Ended
      Year Ended December 31     June 30
$ 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       $ 1,186       $ 1,148  
             
             
Fixed Charges:
                                                                     
Interest expense, including amortization of debt premium
      295         336         347         388         431         143         149  
Portion of rental expenses on operating leases deemed to be representative of the interest factor:
      195         195         183         170         151         95         100  
             
             
Earnings from continuing operations before income taxes and fixed charges
      122         3,229         2,846         2,650         2,178         1,424         1,397  
Fixed Charges:
      490         531         530         558         582         238         249  
             
             
Ratio of earnings to fixed charges(1)
      --         6.1         5.4         4.7         3.7         6.0         5.6  
             
             
 
 
(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.