EX-12.(A) 13 v57435exv12wxay.htm EX-12.(A) EX-12.(a)
NORTHROP GRUMMAN CORPORATION
EXHIBIT 12(a)
NORTHROP GRUMMAN CORPORATION
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
                                         
    Year Ended December 31,
$ in millions   2010 (1)   2009 (1)   2008 (1)   2007 (1)   2006 (1)
     
Earnings:
                                        
 
Earnings (loss) from continuing operations before income taxes
   $ 2,595     $ 2,266     $ (520 )   $ 2,606     $ 2,226  
     
 
Fixed Charges:
                                        
 
Interest expense, including amortization of debt premium
     281       281       295       336       346  
Portion of rental expenses on operating leases deemed to be representative of the interest factor:
     164       183       190       189       174  
     
 
Earnings (loss) from continuing operations before income taxes, less fixed charges
     3,040       2,730       (35 )     3,131       2,746  
 
Fixed Charges:
     445       464       485       525       520  
     
 
Ratio of earnings to fixed charges (2)
     6.8       5.9       —       6.0       5.3  
     
 
(1)   Certain prior-period information has been reclassified to conform to the current year’s presentation.
 
(2)   For the year ended December 31, 2008, the company’s earnings were insufficient to cover fixed charges by $520 million. This loss was entirely due to the non-cash goodwill impairment charge of $3.1 billion recorded during the fourth quarter at Aerospace Systems and Shipbuilding.