Exhibit 12 |
LINCOLN NATIONAL CORPORATION AND SUBSIDIARIES
HISTORICAL RATIO OF EARNINGS TO FIXED CHARGES
(dollars in millions)
For the Years Ended December 31, | ||||||||||||||||||
2011 | 2010 | 2009 | 2008 | 2007 | ||||||||||||||
Income (loss) from continuing operations before taxes | $ | 599 | $ | 1,234 | $ | (521 | ) | $ | (137 | ) | $ | 1,675 | ||||||
Sub-total of fixed charges | 308 | 307 | 292 | 303 | 325 | |||||||||||||
Sub-total of adjusted income (loss) | 907 | 1,541 | (229 | ) | 166 | 2,000 | ||||||||||||
Interest on annuities and financial products | 2,488 | 2,499 | 2,513 | 2,538 | 2,525 | |||||||||||||
Adjusted income (loss) base | $ | 3,395 | $ | 4,040 | $ | 2,284 | $ | 2,704 | $ | 4,525 | ||||||||
Fixed Charges | ||||||||||||||||||
Interest and debt expense (1) | $ | 286 | $ | 286 | $ | 261 | $ | 281 | $ | 284 | ||||||||
Interest expense related to uncertain tax positions | 9 | 7 | 13 | 2 | 21 | |||||||||||||
Portion of rent expense representing interest | 13 | 14 | 18 | 20 | 20 | |||||||||||||
Sub-total of fixed charges excluding interest on annuities and financial products | 308 | 307 | 292 | 303 | 325 | |||||||||||||
Interest on annuities and financial products | 2,488 | 2,499 | 2,513 | 2,538 | 2,525 | |||||||||||||
Total fixed charges | $ | 2,796 | $ | 2,806 | $ | 2,805 | $ | 2,841 | $ | 2,850 | ||||||||
Ratio of sub-total of adjusted income (loss) to sub-total of fixed charges excluding interest on annuities and financial products (2) | 2.94 | 5.02 | NM | NM | 6.15 | |||||||||||||
Ratio of adjusted income (loss) base to total fixed charges (2) | 1.21 | 1.44 | NM | NM | 1.59 |
(1) | Interest and debt expense excludes an $8 million loss, $5 million loss and $64 million gain related to the early retirement of debt in 2011, 2010 and 2009, respectively. |
(2) | The ratios of earnings to fixed charges for the years ended December 31, 2009 and 2008, indicated a less than one-to-one coverage and are therefore not presented. Additional earnings of $521 million and $137 million would have been required for the years ended December 31, 2009 and 2008, respectively, to achieve ratios of one-to-one coverage. |