EX-12.1 2 a2016q4ex121.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,
 
2016
 
2015
 
2014
 
2013
 
2012
Earnings as defined:
 
 
 
 
 
 
 
 
 
Pre-tax income
$
126,429

 
$
107,705

 
$
82,279

 
$
60,720

 
$
53,806

Distributions from investees
24,793

 
7,152

 
6,568

 
6,262

 
21,467

Interest expense
111,272

 
96,236

 
146,787

 
147,084

 
132,538

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

 
(7,243
)
 
(26,051
)
 
(30,028
)
Interest portion of rental expense (1)
9,079

 
8,149

 
7,505

 
2,174

 
1,367

Total earnings
$
269,127

 
$
219,922

 
$
235,896

 
$
190,189

 
$
179,150

Fixed charges as defined:
 
 
 
 
 
 
 
 
 
Interest expense
$
111,272

 
$
96,236

 
$
146,787

 
$
147,084

 
$
132,538

Interest portion of rent expense (1)
9,079

 
8,149

 
7,505

 
2,174

 
1,367

Total fixed charges
$
120,351

 
$
104,385

 
$
154,292

 
$
149,258

 
$
133,905

Ratio of earnings to fixed charges
2.24

 
2.11

 
1.53

 
1.27

 
1.34


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