| Exhibit 12. Statement re computation of ratios | |||||||||||||||||||
| TORCHMARK CORPORATION | |||||||||||||||||||
| COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES | |||||||||||||||||||
| (Dollar amounts in thousands) | |||||||||||||||||||
| Year Ended December 31, | |||||||||||||||||||
| 2015 | 2014 | 2013 | 2012 | 2011 | |||||||||||||||
| Earnings: | |||||||||||||||||||
Pre-tax earnings (1) | $ | 766,187 | $ | 784,677 | $ | 755,315 | $ | 757,670 | $ | 716,435 | |||||||||
| Fixed charges | 78,860 | 77,515 | 81,807 | 81,725 | 79,481 | ||||||||||||||
| Earnings before fixed charges | $ | 845,047 | $ | 862,192 | $ | 837,122 | $ | 839,395 | $ | 795,916 | |||||||||
| Fixed charges: | |||||||||||||||||||
Interest expense (2) | $ | 75,286 | $ | 74,862 | $ | 79,187 | $ | 79,449 | $ | 76,980 | |||||||||
| Amortization of bond issue costs | 1,356 | 1,264 | 1,274 | 1,063 | 928 | ||||||||||||||
| Estimated interest factor of rental expense | 2,218 | 1,389 | 1,346 | 1,213 | 1,573 | ||||||||||||||
| Total fixed charges | $ | 78,860 | $ | 77,515 | $ | 81,807 | $ | 81,725 | $ | 79,481 | |||||||||
| Ratio of earnings to fixed charges | 10.7 | 11.1 | 10.2 | 10.3 | 10.0 | ||||||||||||||
| Earnings before fixed charges | $ | 845,047 | $ | 862,192 | $ | 837,122 | $ | 839,395 | $ | 795,916 | |||||||||
| Interest credited for deposit products | 65,172 | 68,718 | 70,555 | 71,918 | 70,746 | ||||||||||||||
| Adjusted earnings before fixed charges | $ | 910,219 | $ | 930,910 | $ | 907,677 | $ | 911,313 | $ | 866,662 | |||||||||
| Fixed charges | $ | 78,860 | $ | 77,515 | $ | 81,807 | $ | 81,725 | $ | 79,481 | |||||||||
| Interest credited for deposit products | 65,172 | 68,718 | 70,555 | 71,918 | 70,746 | ||||||||||||||
| Adjusted fixed charges | $ | 144,032 | $ | 146,233 | $ | 152,362 | $ | 153,643 | $ | 150,227 | |||||||||
| Ratio of earnings to fixed charges including interest credited on deposit products as a fixed charge | 6.3 | 6.4 | 6.0 | 5.9 | 5.8 | ||||||||||||||
| Rental expense | $ | 6,722 | $ | 4,210 | $ | 4,079 | $ | 3,677 | $ | 4,767 | |||||||||
| Estimated interest factor of rental expense (33%) | 2,218 | 1,389 | 1,346 | 1,213 | 1,573 | ||||||||||||||
(1) Pre-tax earnings have been retrospectively adjusted to give effect to the adoption of new accounting guidance as described in Note 1-Significant Accounting Policies under the caption "Low-Income Housing Tax Credit Interests." Amounts have been retrospectively adjusted for Discontinued Operations as described in Note 6-Discontinued Operations in the Notes to the Consolidated Financial Statements.
(2) There was no interest capitalized in any period indicated.