EX-12.1 4 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 Nine Months
  
   
Ended September 30,
  
   
2009
    
2008
  
Income (loss) from continuing operations before taxes
   $ (654 )   $ 655  
Sub-total of fixed charges
     209       234  
Sub-total of adjusted income (loss)
     (445 )     889  
Interest on annuities and financial products
     1,880       1,903  
Adjusted income base
   $ 1,435     $ 2,792  
Fixed Charges
                
Interest and debt expense (1)
   $ 194     $ 209  
Interest expense related to uncertain tax positions
     2       10  
Portion of rent expense representing interest
     13       15  
Sub-total of fixed charges excluding interest on annuities and financial products
     209       234  
Interest on annuities and financial products
     1,880       1,903  
Total fixed charges
   $ 2,089     $ 2,137  
                 
Ratio of sub-total of adjusted income (loss) to sub-total of fixed charges excluding interest on
                
annuities and financial products (2)
  
NM
       3.80  
Ratio of adjusted income base to total fixed charges (2)
  
NM
       1.31  
 
(1)
Interest and debt expense excludes a $64 million gain related to a gain on early retirement of debt in the first quarter 2009.
(2)
The ratios of earnings to fixed charges for the nine months ended September 30, 2009, indicated less than one-to-one coverage and are therefore not presented.  Additional earnings of $654 million would have been required for the nine months ended September 30, 2009, to achieve ratios of one-to-one coverage.