EX-12.1 2 exhibit121statementrecompu.htm EXHIBIT 12.1 Exhibit
TORCHMARK CORPORATION
COMPUTATION OF RATIO OF EARNINGS
(Dollar amounts in thousands)

Exhibit 12.1
 
Six Months Ended June 30,
 
 Year Ended December 31,
 
2018
 
2017
 
2017
 
2016
 
2015
 
2014
 
2013
Earnings:
 
 
 
 
 
 
 
 
 
 
 
 
 
Pre-tax earnings(1)
$
439,706

 
$
393,667

 
$
830,648

 
$
772,235

 
$
766,187

 
$
784,677

 
$
755,315

Fixed charges
44,715

 
42,682

 
86,659

 
85,497

 
78,860

 
77,515

 
81,807

Earnings before fixed charges
$
484,421

 
$
436,349

 
$
917,307

 
$
857,732

 
$
845,047

 
$
862,192

 
$
837,122

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Fixed charges:
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest expense(2)
$
43,499

 
$
41,349

 
$
83,501

 
$
82,153

 
$
75,286

 
$
74,862

 
$
79,187

Amortization of bond issue costs
534

 
506

 
1,031

 
1,192

 
1,356

 
1,264

 
1,274

Estimated interest factor of rental expense
682

 
827

 
2,127

 
2,152

 
2,218

 
1,389

 
1,346

Total fixed charges
$
44,715

 
$
42,682

 
$
86,659

 
$
85,497

 
$
78,860

 
$
77,515

 
$
81,807

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Ratio of earnings to fixed charges
10.8

 
10.2

 
10.6

 
10.0

 
10.7

 
11.1

 
10.2

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Earnings before fixed charges
$
484,421

 
$
436,349

 
$
917,307

 
$
857,732

 
$
845,047

 
$
862,192

 
$
837,122

Interest credited for deposit products
29,782

 
30,569

 
61,039

 
62,503

 
65,172

 
68,718

 
70,555

Adjusted earnings before fixed charges
$
514,203

 
$
466,918

 
$
978,346

 
$
920,235

 
$
910,219

 
$
930,910

 
$
907,677

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Fixed charges
$
44,715

 
$
42,682

 
$
86,659

 
$
85,497

 
$
78,860

 
$
77,515

 
$
81,807

Interest credited for deposit products
29,782

 
30,569

 
61,039

 
62,503

 
65,172

 
68,718

 
70,555

 Adjusted fixed charges
$
74,497

 
$
73,251

 
$
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
6.9

 
6.4

 
6.6

 
6.2

 
6.3

 
6.4

 
6.0

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 Rental expense
$
2,068

 
$
2,507

 
$
6,446

 
$
6,520

 
$
6,722

 
$
4,210

 
$
4,079

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 Estimated interest factor of rental expense (33%)
$
682

 
$
827

 
$
2,127

 
$
2,152

 
$
2,218

 
$
1,389

 
$
1,346


(1) Pre-tax earnings (2014 and 2013) have been retrospectively adjusted to give effect to the adoption of new accounting guidance in 2015 as described in Note 1-Significant Accounting Policies under the caption "Low-Income Housing Tax Credit Interests" in the FY 2015 10-K. It has also been retrospectively adjusted for Discontinued Operations as described in Note 6 of the aforementioned 10-K.

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