EX-12.1 3 dex121.htm HISTORICAL RATIO OF EARNINGS TO FIXED CHARGES dex121.htm
 
 
Exhibit 12.1

LINCOLN NATIONAL CORPORATION AND SUBSIDIARIES
HISTORICAL RATIO OF EARNINGS TO FIXED CHARGES
(dollars in millions)


   
For the Three Months Ended
  
   
Ended March 31,
  
   
2009
    
2008
  
Income (loss) from continuing operations before taxes
   $ (649 )   $ 418  
Sub-total of fixed charges
     71       87  
Sub-total of adjusted income (loss)
     (578 )     505  
Interest on annuities and financial products
     638       548  
Adjusted income base
   $ 60     $ 1,053  
Fixed Charges
                
Interest and debt expense (1)
   $ 64     $ 76  
Interest expense related to uncertain tax positions
     3       5  
Portion of rent expense representing interest
     4       6  
Sub-total of fixed charges excluding interest on annuities and financial products
     71       87  
Interest on annuities and financial products
     638       548  
Total fixed charges
   $ 709     $ 635  
                 
Ratio of sub-total of adjusted income to sub-total of fixed charges excluding interest on
                
annuities and financial products (2)
  
NM
       5.80  
Ratio of adjusted income base tototal fixed charges (2)
  
NM
       1.66  


(1)
Interest and debt expense excludes a $64 million gain related to the early retirement of debt in the first quarter 2009.
(2)
The ratios of earnings to fixed charges, for the three months ended March 31, 2009, indicated less than one-to-one coverage and are therefore not presented.  Additional earnings of $649 million would have been required for the three months ended March 31, 2009, to achieve ratios of one-to-one coverage.