TORCHMARK CORPORATION
COMPUTATION OF RATIO OF EARNINGS
(Dollar amounts in thousands)
Exhibit 12.1
Quarter Ended June 30, | Year Ended December 31, | ||||||||||||||||||||||||||
2015 | 2014 | 2014 | 2013 | 2012 | 2011 | 2010 | |||||||||||||||||||||
Earnings: | |||||||||||||||||||||||||||
Pre-tax earnings | $ | 368,820 | $ | 391,349 | $ | 778,468 | $ | 763,126 | $ | 765,993 | $ | 723,782 | $ | 750,570 | |||||||||||||
Fixed charges | 38,880 | 38,764 | 77,515 | 81,807 | 81,725 | 79,481 | 77,152 | ||||||||||||||||||||
Earnings before fixed charges | $ | 407,700 | $ | 430,113 | $ | 855,983 | $ | 844,933 | $ | 847,718 | $ | 803,263 | $ | 827,722 | |||||||||||||
Fixed charges: | |||||||||||||||||||||||||||
Interest expense* | $ | 37,503 | $ | 37,460 | $ | 74,862 | $ | 79,187 | $ | 79,449 | $ | 76,980 | $ | 74,669 | |||||||||||||
Amortization of bond issue costs | 671 | 626 | 1,264 | 1,274 | 1,063 | 928 | 860 | ||||||||||||||||||||
Estimated interest factor of rental expense | 706 | 678 | 1,389 | 1,346 | 1,213 | 1,573 | 1,623 | ||||||||||||||||||||
Total fixed charges | $ | 38,880 | $ | 38,764 | $ | 77,515 | $ | 81,807 | $ | 81,725 | $ | 79,481 | $ | 77,152 | |||||||||||||
Ratio of earnings to fixed charges | 10.5 | 11.1 | 11.0 | 10.3 | 10.4 | 10.1 | 10.7 | ||||||||||||||||||||
Earnings before fixed charges | $ | 407,700 | $ | 430,113 | $ | 855,983 | $ | 844,933 | $ | 847,718 | $ | 803,263 | $ | 827,722 | |||||||||||||
Interest credited for deposit products | 32,941 | 34,502 | 68,718 | 70,555 | 71,918 | 70,746 | 69,742 | ||||||||||||||||||||
Adjusted earnings before fixed charges | $ | 440,641 | $ | 464,615 | $ | 924,701 | $ | 915,488 | $ | 919,636 | $ | 874,009 | $ | 897,464 | |||||||||||||
Fixed charges | $ | 38,880 | $ | 38,764 | $ | 77,515 | $ | 81,807 | $ | 81,725 | $ | 79,481 | $ | 77,152 | |||||||||||||
Interest credited for deposit products | 32,941 | 34,502 | 68,718 | 70,555 | 71,918 | 70,746 | 69,742 | ||||||||||||||||||||
Adjusted fixed charges | $ | 71,821 | $ | 73,266 | $ | 146,233 | $ | 152,362 | $ | 153,643 | $ | 150,227 | $ | 146,894 | |||||||||||||
Ratio of earnings to fixed charges including interest | |||||||||||||||||||||||||||
credited on deposit products as a fixed charge | 6.1 | 6.3 | 6.3 | 6.0 | 6.0 | 5.8 | 6.1 | ||||||||||||||||||||
Rental expense | $ | 2,139 | $ | 2,055 | $ | 4,210 | $ | 4,079 | $ | 3,677 | $ | 4,767 | $ | 4,919 | |||||||||||||
Estimated interest factor of rental expense (33%) | $ | 706 | $ | 678 | $ | 1,389 | $ | 1,346 | $ | 1,213 | $ | 1,573 | $ | 1,623 |
*There was no interest capitalized in any period indicated.