EXHIBIT 12.1
Mercury General Corporation
Computation of Ratio of Earnings to Fixed Charges
Year Ended December 31, | Nine Months Ended September 30, 2016 | |||||||||||||||||||||||
| 2015 | 2014 | 2013 | 2012 | 2011 | ||||||||||||||||||||
| (in thousands, except ratios) | ||||||||||||||||||||||||
Computation of Earnings: | ||||||||||||||||||||||||
Income from continuing operations before income taxes | $ | 70,567 | $ | 247,425 | $ | 132,096 | $ | 135,310 | $ | 245,099 | $ | 121,994 | ||||||||||||
Add: Fixed charges | 8,516 | 7,633 | 8,050 | 7,618 | 11,785 | 7,155 | ||||||||||||||||||
Estimated interest component on uncertain tax positions (1) | (274 | ) | (283 | ) | (392 | ) | (166 | ) | (131 | ) | (296 | ) | ||||||||||||
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Total earnings | $ | 78,809 | $ | 254,775 | $ | 139,754 | $ | 142,762 | $ | 256,753 | $ | 128,853 | ||||||||||||
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Computation of Fixed Charges: | ||||||||||||||||||||||||
Interest expense, including amortization of premiums, discounts and debt issuance costs | $ | 3,168 | $ | 2,637 | $ | 1,260 | $ | 1,543 | $ | 5,549 | $ | 2,922 | ||||||||||||
Estimated interest component of rental expense (2) | 5,074 | 4,713 | 6,398 | 5,909 | 6,105 | 3,937 | ||||||||||||||||||
Estimated interest component on uncertain tax positions (1) | 274 | 283 | 392 | 166 | 131 | 296 | ||||||||||||||||||
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Total fixed charges | $ | 8,516 | $ | 7,633 | $ | 8,050 | $ | 7,618 | $ | 11,785 | $ | 7,155 | ||||||||||||
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Ratio of earnings to fixed charges | 9.3 | 33.4 | 17.4 | 18.7 | 21.8 | 18.0 | ||||||||||||||||||
| (1) | The Company recognizes interest and penalties relating to uncertain tax positions in income tax expense. |
| (2) | Represents the estimated portion of operating lease rental expense that is considered by us to be representative of interest (one-third of rental expense). |
For the periods indicated above, we had no outstanding shares of preferred stock with required dividend payments.
