LINCOLN NATIONAL CORPORATION
EXHIBIT 12 - HISTORICAL RATIO OF EARNINGS TO FIXED CHARGES
Year Ended December 31,
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(in millions of dollars) 2000 1999 1998 1997 (4) 1996
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Net Income before Taxes
and Minority Interests $ 836.3 $ 570.0 $ 697.4 $1,427.1 $ 692.7
Equity in the Earnings of
Unconsolidated Affiliates 0.4 (5.8) (3.3) (2.1) (1.4)
Sub-total of Fixed Charges 168.9 160.9 144.1 113.3 108.6
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Sub-total of Adjusted Net Income 1,005.6 725.1 838.2 1,538.3 799.9
Interest on Annuities and
Financial Products 1,474.2 1,510.4 1,446.2 1,253.5 1,185.6
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Adjusted Net Income Base 2,479.8 2,235.5 2,284.4 2,791.8 1,985.5
Rent Expense 88.4 81.5 81.3 62.5 71.6
Fixed Charges:
Interest and Debt Expense 139.5 133.7 117.1 92.5 84.7
Rent (Pro-rated) 29.4 27.2 27.0 20.8 23.9
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Sub-total Fixed Charges 168.9 160.9 144.1 113.3 108.6
Interest on Annuities and
Financial Products 1,474.2 1,510.4 1,446.2 1,253.5 1,185.6
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Sub-total Fixed Charges 1,643.1 1,671.3 1,590.3 1,366.8 1,294.2
Preferred Dividends (Pre-tax) 0.1 0.1 0.1 0.2 0.2
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Total Fixed Charges $1,643.2 $1,671.4 $1,590.4 $1,367.0 $1,294.4
Ratio of Earnings to Fixed Charges:
Excluding Interest on Annuities
and Financial Products (1) 5.95 4.51 5.82 13.57 7.37
Including Interest on Annuities
and Financial Products (2) 1.51 1.34 1.44 2.04 1.53
Ratio of Earnings to Combined Fixed Charges
and Preferred Stock Dividends (3) 1.51 1.34 1.44 2.04 1.53
(1) For purposes of determining this ratio, earnings consist of income
before federal income taxes, cumulative effect of accounting change,
if any, and minority interests adjusted for the difference between
income or losses from unconsolidated equity investments and cash
distributions from such investments, plus fixed charges. Fixed
charges consist of 1) interest and debt expense on short and
long-term debt and distributions to minority interest-preferred
securities of subsidiary companies and 2) the portion of operating
leases that are representative of the interest factor.
(2) Same as the ratio of earnings to fixed charges, excluding interest
on annuities and financial products, except fixed charges and
earnings include interest on annuities and financial products.
(3) Same as the ratio of earnings to fixed charges, including interest
on annuities and financial products, except that fixed charges
include the pre-tax earnings required to cover preferred stock
dividend requirements.
(4) Coverage ratios for 1997 are higher than other historical periods
shown due to the inclusion of the gain on sale of discontinued
operations.