EX-12.(A) 7 v51127exv12wxay.htm EX-12(A) exv12wxay
 
NORTHROP GRUMMAN CORPORATION
 
EXHIBIT 12(a)
 
NORTHROP GRUMMAN CORPORATION
COMPUTATION OF RATIOS OF EARNINGS TO FIXED CHARGES
 
                                         
    Year Ended December 31,
$ in millions   2008   2007 (1)   2006 (1)   2005 (1)   2004 (1)
Earnings:
                                       
(Loss) income from continuing operations before
income taxes
  $ (368 )   $ 2,698     $ 2,316     $ 2,092     $ 1,596  
                                         
Fixed Charges:
                                       
Interest expense, including amortization of debt premium
    295       336       347       388       431  
Portion of rental expenses on operating leases deemed to be representative of the interest factor:
    195       195       183       170       151  
                                         
Income from continuing operations before income taxes, less fixed charges
    122       3,229       2,846       2,650       2,178  
Fixed Charges:
    490       531       530       558       582  
                                         
Ratio of earnings to fixed charges(2)
    —       6.1       5.4       4.7       3.7  
                                         
 
 
(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 $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 Space Technology.