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, | ||||||||||||||||||||
| 2010 | 2009 | 2008 | 2007 | 2006 | ||||||||||||||||
Earnings: | ||||||||||||||||||||
Pre-tax earnings | $ | 778,567 | $ | 577,076 | $ | 628,400 | $ | 739,956 | $ | 710,938 | ||||||||||
Fixed charges | 68,368 | 62,786 | 56,134 | 60,748 | 60,155 | |||||||||||||||
Earnings before fixed charges | $ | 846,935 | $ | 639,862 | $ | 684,534 | $ | 800,704 | $ | 771,093 | ||||||||||
Fixed charges: | ||||||||||||||||||||
Interest expense* | $ | 65,885 | $ | 60,476 | $ | 53,937 | $ | 58,305 | $ | 56,921 | ||||||||||
Amortization of bond issue costs | 860 | 672 | 508 | 475 | 1,237 | |||||||||||||||
Estimated interest factor of rental expense | 1,623 | 1,638 | 1,689 | 1,968 | 1,997 | |||||||||||||||
Total fixed charges | $ | 68,368 | $ | 62,786 | $ | 56,134 | $ | 60,748 | $ | 60,155 | ||||||||||
Ratio of earnings to fixed charges | 12.4 | 10.2 | 12.2 | 13.2 | 12.8 | |||||||||||||||
Earnings before fixed charges | $ | 846,935 | $ | 639,862 | $ | 684,534 | $ | 800,704 | $ | 771,093 | ||||||||||
Interest credited for deposit products | 82,458 | 77,624 | 70,422 | 66,434 | 61,940 | |||||||||||||||
Adjusted earnings before fixed charges | $ | 929,393 | $ | 717,486 | $ | 754,956 | $ | 867,138 | $ | 833,033 | ||||||||||
Fixed charges | $ | 68,368 | $ | 62,786 | $ | 56,134 | $ | 60,748 | $ | 60,155 | ||||||||||
Interest credited for deposit products | 82,458 | 77,624 | 70,422 | 66,434 | 61,940 | |||||||||||||||
Adjusted fixed charges | $ | 150,826 | $ | 140,410 | $ | 126,556 | $ | 127,182 | $ | 122,095 | ||||||||||
Ratio of earnings to fixed charges including interest credited on deposit products as a fixed charge | 6.2 | 5.1 | 6.0 | 6.8 | 6.8 | |||||||||||||||
Rental expense | $ | 4,919 | $ | 4,963 | $ | 5,117 | $ | 5,964 | $ | 6,050 | ||||||||||
Estimated interest factor of rental expense (33%) | $ | 1,623 | $ | 1,638 | $ | 1,689 | $ | 1,968 | $ | 1,997 | ||||||||||
| * | There was no interest capitalized in any period indicated. |