EX-12 4 exhibit12.htm EXHIBIT 12 exhibit12.htm
 
Exhibit 12

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

 
 
 
 
 
 
 
 
 
  
For the Years Ended December 31,
 
 
 
 
 
 
 
 
 
  
2010 
 
2009 
 
2008 
 
2007 
 
2006 
Income (loss) from continuing operations
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
before taxes
$
 1,234 
 
$
 (521)
 
$
 (137)
 
$
 1,675 
 
$
 1,631 
Sub-total of fixed charges
 
 307 
 
 
 292 
 
 
 303 
 
 
 325 
 
 
 242 
 
Sub-total of adjusted income (loss)
 
 1,541 
 
 
 (229)
 
 
 166 
 
 
 2,000 
 
 
 1,873 
Interest on annuities and financial products
 
 2,496 
 
 
 2,512 
 
 
 2,532 
 
 
 2,519 
 
 
 2,260 
 
 
Adjusted income (loss) base
$
 4,037 
 
$
 2,283 
 
$
 2,698 
 
$
 4,519 
 
$
 4,133 
Fixed Charges
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest and debt expense (1)
$
 286 
 
$
 261 
 
$
 281 
 
$
 284 
 
$
 223 
Interest expense related to uncertain tax
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
positions
 
 7 
 
 
 13 
 
 
 2 
 
 
 21 
 
 
 - 
Portion of rent expense representing interest
 
 14 
 
 
 18 
 
 
 20 
 
 
 20 
 
 
 19 
 
Sub-total of fixed charges excluding
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
interest on annuities and financial
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
products
 
 307 
 
 
 292 
 
 
 303 
 
 
 325 
 
 
 242 
Interest on annuities and financial products
 
 2,496 
 
 
 2,512 
 
 
 2,532 
 
 
 2,519 
 
 
 2,260 
 
 
 
Total fixed charges
$
 2,803 
 
$
 2,804 
 
$
 2,835 
 
$
 2,844 
 
$
 2,502 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Ratio of sub-total of adjusted income (loss)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
to sub-total of fixed charges excluding
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
interest on annuities and financial
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
products (2)
 
 5.02 
 
 
NM
 
 
NM
 
 
 6.15 
 
 
 7.74 
Ratio of adjusted income (loss) base to
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
total fixed charges (2)
 
 1.44 
 
 
NM
 
 
NM
 
 
 1.59 
 
 
 1.65 

(1)  
Interest and debt expense excludes a $5 million loss, $64 million gain and $5 million gain related to the early retirement of debt in 2010, 2009 and 2006, respectively.
(2)  
The ratios of earnings to fixed charges for the years ended December 31, 2009 and 2008, indicated a less than one-to-one coverage and are therefore not presented.  Additional earnings of $521 million and $137 million would have been required for the years ended December 31, 2009 and 2008, respectively, to achieve ratios of one-to-one coverage.