EXHIBIT 12
Anthem, Inc.—Statement Re Computation of Earnings to Fixed Charges
06/30/04 | 12/31/03 | 12/31/02 | 12/31/01 | 12/31/00 | 12/31/99 | |||||||||||||||
Ratio of Earnings to Fixed Charges | ||||||||||||||||||||
Earnings: | ||||||||||||||||||||
Pretax earnings from continuing operations before adjustment for minority interest | $ | 755.8 | $ | 1,219.1 | $ | 807.6 | $ | 524.6 | $ | 329.8 | $ | 60.8 | ||||||||
Add fixed charges: | ||||||||||||||||||||
Interest expense, including amortization of debt | ||||||||||||||||||||
discount and expense | 64.5 | 131.2 | 98.5 | 60.2 | 54.7 | 30.4 | ||||||||||||||
Estimated interest portion of rental expense | 7.3 | 17.1 | 15.8 | 15.1 | 21.3 | 20.3 | ||||||||||||||
Total Earnings Available for Fixed Charges | $ | 827.6 | $ | 1,367.4 | $ | 921.9 | $ | 599.9 | $ | 405.8 | $ | 111.5 | ||||||||
Fixed Charges: | ||||||||||||||||||||
Interest expense, including amortization of debt discount and expense | $ | 64.5 | $ | 131.2 | $ | 98.5 | $ | 60.2 | $ | 54.7 | $ | 30.4 | ||||||||
Estimated interest portion of rental expense | $ | 7.3 | $ | 17.1 | $ | 15.8 | $ | 15.1 | $ | 21.3 | $ | 20.3 | ||||||||
Total Fixed Charges | $ | 71.8 | $ | 148.3 | $ | 114.3 | $ | 75.3 | $ | 76.0 | $ | 50.7 | ||||||||
Ratio of earnings to fixed charges | 11.53 | 9.22 | 8.07 | 7.97 | 5.34 | 2.20 | ||||||||||||||
Pro Forma Ratio of Earnings to Fixed Charges | ||||||||||||||||||||
Earnings: | ||||||||||||||||||||
Pretax earnings from continuing operations before adjustment for minority interest | $ | 755.8 | $ | 1,219.1 | N/A | N/A | N/A | N/A | ||||||||||||
Add fixed charges: | ||||||||||||||||||||
Interest expense, including amortization of debt discount and expense | 64.5 | 131.2 | N/A | N/A | N/A | N/A | ||||||||||||||
Estimated interest portion of rental expense | 7.3 | 17.1 | N/A | N/A | N/A | N/A | ||||||||||||||
Total Pro Forma Earnings Available for Fixed Charges | $ | 827.6 | $ | 1,367.4 | N/A | N/A | N/A | N/A | ||||||||||||
Fixed Charges: | ||||||||||||||||||||
Interest expense, including amortization of debt discount and expense | $ | 64.5 | $ | 131.2 | N/A | N/A | N/A | N/A | ||||||||||||
Estimated interest portion of rental expense | $ | 7.3 | $ | 17.1 | N/A | N/A | N/A | N/A | ||||||||||||
Net reduction of interest expense from issuance of Notes due 2007 and retirement of subordinated debentures | (2.2 | ) | (4.4 | ) | N/A | N/A | N/A | N/A | ||||||||||||
Total Pro Forma Fixed Charges | $ | 69.6 | $ | 143.9 | N/A | N/A | N/A | N/A | ||||||||||||
Pro Forma Ratio of earnings to fixed charges | 11.89 | 9.50 | N/A | N/A | N/A | N/A | ||||||||||||||