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, | |||||||||||||||||||
2016 | 2015 | 2014 | 2013 | 2012 | |||||||||||||||
Earnings: | |||||||||||||||||||
Pre-tax earnings | $ | 772,235 | $ | 766,187 | $ | 784,677 | $ | 755,315 | $ | 757,670 | |||||||||
Fixed charges | 85,497 | 78,860 | 77,515 | 81,807 | 81,725 | ||||||||||||||
Earnings before fixed charges | $ | 857,732 | $ | 845,047 | $ | 862,192 | $ | 837,122 | $ | 839,395 | |||||||||
Fixed charges: | |||||||||||||||||||
Interest expense (1) | $ | 82,153 | $ | 75,286 | $ | 74,862 | $ | 79,187 | $ | 79,449 | |||||||||
Amortization of bond issue costs | 1,192 | 1,356 | 1,264 | 1,274 | 1,063 | ||||||||||||||
Estimated interest factor of rental expense | 2,152 | 2,218 | 1,389 | 1,346 | 1,213 | ||||||||||||||
Total fixed charges | $ | 85,497 | $ | 78,860 | $ | 77,515 | $ | 81,807 | $ | 81,725 | |||||||||
Ratio of earnings to fixed charges | 10.0 | 10.7 | 11.1 | 10.2 | 10.3 | ||||||||||||||
Earnings before fixed charges | $ | 857,732 | $ | 845,047 | $ | 862,192 | $ | 837,122 | $ | 839,395 | |||||||||
Interest credited for deposit products | 62,503 | 65,172 | 68,718 | 70,555 | 71,918 | ||||||||||||||
Adjusted earnings before fixed charges | $ | 920,235 | $ | 910,219 | $ | 930,910 | $ | 907,677 | $ | 911,313 | |||||||||
Fixed charges | $ | 85,497 | $ | 78,860 | $ | 77,515 | $ | 81,807 | $ | 81,725 | |||||||||
Interest credited for deposit products | 62,503 | 65,172 | 68,718 | 70,555 | 71,918 | ||||||||||||||
Adjusted fixed charges | $ | 148,000 | $ | 144,032 | $ | 146,233 | $ | 152,362 | $ | 153,643 | |||||||||
Ratio of earnings to fixed charges including interest credited on deposit products as a fixed charge | 6.2 | 6.3 | 6.4 | 6.0 | 5.9 | ||||||||||||||
Rental expense | $ | 6,520 | $ | 6,722 | $ | 4,210 | $ | 4,079 | $ | 3,677 | |||||||||
Estimated interest factor of rental expense (33%) | 2,152 | 2,218 | 1,389 | 1,346 | 1,213 |
(1) There was no interest capitalized in any period indicated.