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, | ||||||||||||||||||||
2014 | 2013 | 2012 | 2011 | 2010 | ||||||||||||||||
Earnings: | ||||||||||||||||||||
Pre-tax earnings | $ | 778,468 | $ | 763,126 | $ | 765,993 | $ | 723,782 | $ | 750,570 | ||||||||||
Fixed charges | 77,515 | 81,807 | 81,725 | 79,481 | 77,152 | |||||||||||||||
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Earnings before fixed charges | $ | 855,983 | $ | 844,933 | $ | 847,718 | $ | 803,263 | $ | 827,722 | ||||||||||
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Fixed charges: | ||||||||||||||||||||
Interest expense* | $ | 74,862 | $ | 79,187 | $ | 79,449 | $ | 76,980 | $ | 74,669 | ||||||||||
Amortization of bond issue costs | 1,264 | 1,274 | 1,063 | 928 | 860 | |||||||||||||||
Estimated interest factor of rental expense | 1,389 | 1,346 | 1,213 | 1,573 | 1,623 | |||||||||||||||
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Total fixed charges | $ | 77,515 | $ | 81,807 | $ | 81,725 | $ | 79,481 | $ | 77,152 | ||||||||||
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Ratio of earnings to fixed charges | 11.0 | 10.3 | 10.4 | 10.1 | 10.7 | |||||||||||||||
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Earnings before fixed charges | $ | 855,983 | $ | 844,933 | $ | 847,718 | $ | 803,263 | $ | 827,722 | ||||||||||
Interest credited for deposit products | 68,718 | 70,555 | 71,918 | 70,746 | 69,742 | |||||||||||||||
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Adjusted earnings before fixed charges | $ | 924,701 | $ | 915,488 | $ | 919,636 | $ | 874,009 | $ | 897,464 | ||||||||||
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Fixed charges | $ | 77,515 | $ | 81,807 | $ | 81,725 | $ | 79,481 | $ | 77,152 | ||||||||||
Interest credited for deposit products | 68,718 | 70,555 | 71,918 | 70,746 | 69,742 | |||||||||||||||
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Adjusted fixed charges | $ | 146,233 | $ | 152,362 | $ | 153,643 | $ | 150,227 | $ | 146,894 | ||||||||||
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Ratio of earnings to fixed charges including interest credited on deposit products as a fixed charge | 6.3 | 6.0 | 6.0 | 5.8 | 6.1 | |||||||||||||||
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Rental expense | $ | 4,210 | $ | 4,079 | $ | 3,677 | $ | 4,767 | $ | 4,919 | ||||||||||
Estimated interest factor of rental expense (33%) | $ | 1,389 | $ | 1,346 | $ | 1,213 | $ | 1,573 | $ | 1,623 |
* | There was no interest capitalized in any period indicated. |