EX-12 4 tmk201710-kexhibit12.htm EXHIBIT 12 Exhibit


 Exhibit 12. Statement re computation of ratios
 
 
 
 
 
 
 
 
 
 
 TORCHMARK CORPORATION
 COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
 (Dollar amounts in thousands)
 
 
 
 
 
 
 
 
 
 
 
 Year Ended December 31,
 
2017
 
2016
 
2015
 
2014
 
2013
 Earnings:
 
 
 
 
 
 
 
 
 
 Pre-tax earnings 
$
830,648

 
$
772,235

 
$
766,187

 
$
784,677

 
$
755,315

 Fixed charges
86,659

 
85,497

 
78,860

 
77,515

 
81,807

 Earnings before fixed charges
$
917,307

 
$
857,732

 
$
845,047

 
$
862,192

 
$
837,122

 
 
 
 
 
 
 
 
 
 
 Fixed charges:
 
 
 
 
 
 
 
 
 
 Interest expense (1)
$
83,501

 
$
82,153

 
$
75,286

 
$
74,862

 
$
79,187

 Amortization of bond issue costs
1,031

 
1,192

 
1,356

 
1,264

 
1,274

 Estimated interest factor of rental expense
2,127

 
2,152

 
2,218

 
1,389

 
1,346

 Total fixed charges
$
86,659

 
$
85,497

 
$
78,860

 
$
77,515

 
$
81,807

 
 
 
 
 
 
 
 
 
 
 Ratio of earnings to fixed charges
10.6

 
10.0

 
10.7

 
11.1

 
10.2

 
 
 
 
 
 
 
 
 
 
 Earnings before fixed charges
$
917,307

 
$
857,732

 
$
845,047

 
$
862,192

 
$
837,122

 Interest credited for deposit products
61,039

 
62,503

 
65,172

 
68,718

 
70,555

 Adjusted earnings before fixed charges
$
978,346

 
$
920,235

 
$
910,219

 
$
930,910

 
$
907,677

 
 
 
 
 
 
 
 
 
 
 Fixed charges
$
86,659

 
$
85,497

 
$
78,860

 
$
77,515

 
$
81,807

 Interest credited for deposit products
61,039

 
62,503

 
65,172

 
68,718

 
70,555

 Adjusted fixed charges
$
147,698

 
$
148,000

 
$
144,032

 
$
146,233

 
$
152,362

 
 
 
 
 
 
 
 
 
 
Ratio of earnings to fixed charges including interest credited on deposit products as a fixed charge
6.6

 
6.2

 
6.3

 
6.4

 
6.0

 
 
 
 
 
 
 
 
 
 
 Rental expense
$
6,446

 
$
6,520

 
$
6,722

 
$
4,210

 
$
4,079

 
 
 
 
 
 
 
 
 
 
Estimated interest factor of rental expense (33%)
2,127

 
2,152

 
2,218

 
1,389

 
1,346


(1) There was no interest capitalized in any period indicated.