LINCOLN NATIONAL CORPORATION AND SUBSIDIARIES
HISTORICAL RATIO OF EARNINGS TO FIXED CHARGES
(dollars in millions)
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| For the Years Ended December 31, |
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| 2017 |
| 2016 |
| 2015 |
| 2014 |
| 2013 |
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Income (loss) from continuing operations before taxes | $ | 1,130 |
| $ | 1,458 |
| $ | 1,430 |
| $ | 1,997 |
| $ | 1,631 |
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Sub-total of fixed charges |
| 267 |
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| 269 |
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| 284 |
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| 270 |
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| 279 |
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Sub-total of adjusted income (loss) |
| 1,397 |
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| 1,727 |
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| 1,714 |
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| 2,267 |
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| 1,910 |
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Interest on annuities and financial products |
| 2,584 |
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| 2,554 |
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| 2,506 |
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| 2,508 |
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| 2,486 |
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Adjusted income (loss) base | $ | 3,981 |
| $ | 4,281 |
| $ | 4,220 |
| $ | 4,775 |
| $ | 4,396 |
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Fixed Charges |
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Interest and debt expense (1) | $ | 253 |
| $ | 268 |
| $ | 272 |
| $ | 267 |
| $ | 265 |
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Interest expense (income) related to uncertain tax positions |
| - |
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| (14 | ) |
| (2 | ) |
| (11 | ) |
| 2 |
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Portion of rent expense representing interest |
| 14 |
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| 15 |
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| 14 |
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| 14 |
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| 12 |
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Sub-total of fixed charges excluding interest on |
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annuities and financial products |
| 267 |
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| 269 |
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| 284 |
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| 270 |
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| 279 |
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Interest on annuities and financial products |
| 2,584 |
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| 2,554 |
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| 2,506 |
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| 2,508 |
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| 2,486 |
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Total fixed charges | $ | 2,851 |
| $ | 2,823 |
| $ | 2,790 |
| $ | 2,778 |
| $ | 2,765 |
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Ratio of sub-total of adjusted income (loss) to sub-total |
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of fixed charges excluding interest on annuities and |
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financial products |
| 5.23 |
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| 6.42 |
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| 6.04 |
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| 8.40 |
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| 6.85 |
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Ratio of adjusted income (loss) base to total fixed |
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charges |
| 1.40 |
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| 1.52 |
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| 1.51 |
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| 1.72 |
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| 1.59 |
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(1) | Interest and debt expense excludes a $63 million loss related to the early retirement of debt in 2016. |