EX-12.1 5 a2017q4ex121.htm EXHIBIT 12.1 Exhibit


Exhibit 12.1
VECTOR GROUP LTD.
Computation of Ratio of Earnings to Fixed Charges
(Dollars in Thousands, Except Ratios)
(Unaudited)
 
Year Ended December 31,
 
2017
 
2016
 
2015
 
2014
 
2013
Earnings as defined:
 
 
 
 
 
 
 
 
 
Pre-tax income
$
89,168

 
$
126,429

 
$
107,705

 
$
82,279

 
$
60,720

Distributions from investees
39,431

 
24,793

 
7,152

 
6,568

 
6,262

Interest expense
137,766

 
111,272

 
96,236

 
146,787

 
147,084

(Income) loss in equity of affiliate
(20,630
)
 
(2,446
)
 
680

 
(7,243
)
 
(26,051
)
Interest portion of rental expense (1)
11,619

 
9,079

 
8,149

 
7,505

 
2,174

Total earnings
$
257,354

 
$
269,127

 
$
219,922

 
$
235,896

 
$
190,189

Fixed charges as defined:
 
 
 
 
 
 
 
 
 
Interest expense
$
137,766

 
$
111,272

 
$
96,236

 
$
146,787

 
$
147,084

Interest portion of rent expense (1)
11,619

 
9,079

 
8,149

 
7,505

 
2,174

Total fixed charges
$
149,385

 
$
120,351

 
$
104,385

 
$
154,292

 
$
149,258

Ratio of earnings to fixed charges
1.72

 
2.24

 
2.11

 
1.53

 
1.27


________________________
(1) One third of rent expense is the portion deemed representative of the interest factor.