LIBERTY FINANCIAL COMPANIES, INC.
EXHIBIT 12 - STATEMENT RE COMPUTATION OF RATIOS
($ in millions)
THREE MONTHS ENDED SIX MONTHS ENDED
JUNE 30 JUNE 30
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2001 2000 2001 2000
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Earnings:
Pretax income $5.0 $47.7 $5.8 $110.1
Add fixed charges:
Interest on indebtedness 14.5 10.1 29.7 19.9
Portion of rent representing the interest factor 1.6 1.3 3.2 2.5
Accretion to face value of redeemable
convertible preferred stock - - - 0.2
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Sub-total of income as adjusted 21.1 59.1 38.7 132.7
Interest on fixed annuities and financial products 153.4 133.2 301.9 260.5
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Total income as adjusted $174.5 $192.3 $340.6 $393.2
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Fixed charges:
Interest on indebtedness $14.5 $10.1 $29.7 $19.9
Portion of rent representing the interest factor 1.6 1.3 3.2 2.5
Accretion to face value of redeemable
convertible preferred stock - - - 0.2
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Sub-total of fixed charges 16.1 11.4 32.9 22.6
Interest on fixed annuities and financial products 153.4 133.2 301.9 260.5
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Combined fixed charges 169.5 144.6 334.8 283.1
Preferred stock dividends 0.3 0.4 0.5 0.7
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Fixed charges and preferred stock dividends $169.8 $145.0 $335.3 $283.8
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Ratio of earnings to fixed charges:
Excluding interest on fixed annuities and financial
products 1.31 x 5.18 x 1.18 x 5.87 x
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Including interest on fixed annuities and financial
products 1.03 x 1.33 x 1.02 x 1.39 x
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Ratio of earnings to combined fixed charges and preferred
stock dividends:
Excluding interest on fixed annuities and financial
products 1.29 x 5.01 x 1.16 x 5.70 x
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Including interest on fixed annuities and financial
products 1.03 x 1.33 x 1.02 x 1.39 x
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