EX-12 5 c558-20131231ex1270a247f.htm EX-12 Exhibit 12

 

Exhibit 12

 

LINCOLN NATIONAL CORPORATION AND SUBSIDIARIES

HISTORICAL RATIO OF EARNINGS TO FIXED CHARGES

(dollars in millions)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the Years Ended December 31,

 

2013

 

2012

 

2011

 

2010

 

2009

Income (loss) from continuing operations before taxes

$
1,631 

 

$
1,568 

 

$
503 

 

$
1,135 

 

$
(673)

Sub-total of fixed charges

 
279 

 

 
282 

 

 
308 

 

 
307 

 

 
292 

Sub-total of adjusted income (loss)

 
1,910 

 

 
1,850 

 

 
811 

 

 
1,442 

 

 
(381)

Interest on annuities and financial products

 
2,486 

 

 
2,478 

 

 
2,488 

 

 
2,499 

 

 
2,513 

Adjusted income (loss) base

$
4,396 

 

$
4,328 

 

$
3,299 

 

$
3,941 

 

$
2,132 

Fixed Charges

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest and debt expense (1)

$
265 

 

$
268 

 

$
286 

 

$
286 

 

$
261 

Interest expense related to uncertain tax positions

 
2 

 

 
1 

 

 
9 

 

 
7 

 

 
13 

Portion of rent expense representing interest

 
12 

 

 
13 

 

 
13 

 

 
14 

 

 
18 

Sub-total of fixed charges excluding interest on

 

 

 

 

 

 

 

 

 

 

 

 

 

 

annuities and financial products

 
279 

 

 
282 

 

 
308 

 

 
307 

 

 
292 

Interest on annuities and financial products

 
2,486 

 

 
2,478 

 

 
2,488 

 

 
2,499 

 

 
2,513 

Total fixed charges

$
2,765 

 

$
2,760 

 

$
2,796 

 

$
2,806 

 

$
2,805 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Ratio of sub-total of adjusted income (loss) to sub-total

 

 

 

 

 

 

 

 

 

 

 

 

 

 

of fixed charges excluding interest on annuities and

 

 

 

 

 

 

 

 

 

 

 

 

 

 

financial products (2)

 
6.85 

 

 
6.56 

 

 
2.63 

 

 
4.70 

 

 

NM

Ratio of adjusted income (loss) base to total fixed

 

 

 

 

 

 

 

 

 

 

 

 

 

 

charges (2)

 
1.59 

 

 
1.57 

 

 
1.18 

 

 
1.40 

 

 

NM

 

(1)

Interest and debt expense excludes a $5 million loss, $8 million loss, $5 million loss and $64 million gain related to the early retirement of debt in 2012, 2011, 2010 and 2009, respectively.

(2)

The ratio of earnings to fixed charges for the year ended December 31, 2009, indicated less than one-to-one coverage and is therefore not presented.  Additional earnings of $673 million would have been required for the year ended December 31, 2009, to achieve a ratio of one-to-one coverage.