EXHIBIT 12
STATEMENT RE: COMPUTATION OF RATIO OF
EARNINGS TO FIXED CHARGES
($ amounts in millions)
Years Ended 2005, 2004, 2003, 2002 and 2001
EARNINGS TO FIXED CHARGES
($ amounts in millions)
Years Ended 2005, 2004, 2003, 2002 and 2001
2005 | 2004 | 2003 | 2002 | 2001 | ||||||||||||||||
Income (loss) from continuing operations before income taxes, minority interest and earnings attributed to mandatorily redeemable noncontrolling interests(1) | $ | 144.1 | $ | 151.5 | $ | (8.2 | ) | $ | (191.7 | ) | $ | (253.5 | ) | |||||||
Less: Equity in earnings (losses) of venture capital | ||||||||||||||||||||
partnership investments | 14.8 | 19.3 | 36.2 | (59.3 | ) | (84.5 | ) | |||||||||||||
Add: Distributed earnings of affiliates | — | 1.5 | 1.2 | 4.6 | 6.9 | |||||||||||||||
Distributed earnings of venture capital partnership investments | 68.0 | 50.4 | 31.8 | 14.2 | 30.5 | |||||||||||||||
Income (loss) from continuing operations before income taxes, minority interest, equity in undistributed earnings of affiliates and venture capital partnership investments | $ | 197.3 | $ | 184.1 | $ | (11.4 | ) | $ | (113.6 | ) | $ | (131.6 | ) | |||||||
Fixed Charges: | ||||||||||||||||||||
Interest expense on indebtedness(2) | $ | 46.6 | $ | 40.8 | $ | 39.6 | $ | 31.4 | $ | 27.3 | ||||||||||
Stock purchase contract adjustment payments | 7.4 | 8.2 | 8.2 | 1.0 | — | |||||||||||||||
Rental expense | 2.3 | 3.5 | 3.8 | 4.0 | 4.4 | |||||||||||||||
Fixed charges, exclusive of interest credited on policyholder contract balances | $ | 56.3 | $ | 52.5 | $ | 51.6 | $ | 36.4 | $ | 31.7 | ||||||||||
Interest credited on policyholder contract balances | 191.2 | 201.6 | 207.9 | 181.4 | 133.2 | |||||||||||||||
Total fixed charges, inclusive of interest credited on policyholder contract balances | $ | 247.5 | $ | 254.1 | $ | 259.5 | $ | 217.8 | $ | 164.9 | ||||||||||
Income (loss) from continuing operations before income taxes, minority interest, equity in undistributed earnings of affiliates and venture capital partnership investments and fixed charges | $ | 444.8 | $ | 438.2 | $ | 248.1 | $ | 104.2 | $ | 33.3 | ||||||||||
Ratio of earnings to fixed charges | 1.8 | 1.7 | — | — | — | |||||||||||||||
Additional earnings required to achieve 1:1 ratio coverage | $ | — | $ | — | $ | 11.4 | $ | 113.6 | $ | 131.6 | ||||||||||
SUPPLEMENTAL RATIO — ratio of earnings to fixed charges exclusive of interest credited on policyholder contract balances: | ||||||||||||||||||||
Income (loss) from continuing operations before income taxes, minority interest, equity in undistributed earnings of affiliates and venture capital partnership investments | $ | 197.3 | $ | 184.1 | $ | (11.4 | ) | $ | (113.6 | ) | $ | (131.6 | ) | |||||||
Fixed Charges: | ||||||||||||||||||||
Total fixed charges, as above | $ | 56.3 | $ | 52.5 | $ | 51.6 | $ | 36.4 | $ | 31.7 | ||||||||||
Income (loss) from continuing operations before income taxes, minority interest, equity in undistributed earnings of affiliates and venture capital partnership investments and fixed charges | $ | 253.6 | $ | 236.6 | $ | 40.2 | $ | (77.2 | ) | $ | (99.9 | ) | ||||||||
Ratio of earnings to fixed charges | 4.5 | 4.5 | — | — | — | |||||||||||||||
Additional earnings required to achieve 1:1 ratio coverage | $ | — | $ | — | $ | 11.4 | $ | 113.6 | $ | 131.6 | ||||||||||
(1) | Earnings attributed to mandatorily redeemable noncontrolling interests included in Other operating expenses for the years ended 2005 through 2001 were $6.7 million, $14.3 million, $12.0 million, $11.9 million and $6.9 million, respectively. | |
(2) | Interest expense on collateralized obligations is not included as these are non-recourse liabilities to Phoenix and the interest expense is solely funded by assets pledged as collateral consolidated on our balance sheet. |