EX-12 3 lnc-20171231xex12.htm EX-12

Exhibit 12

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LINCOLN NATIONAL CORPORATION AND SUBSIDIARIES

HISTORICAL RATIO OF EARNINGS TO FIXED CHARGES

(dollars in millions)

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﻿ | For the Years Ended December 31, |
﻿ | 2017 |  | 2016 |  | 2015 |  | 2014 |  | 2013 |
Income (loss) from continuing operations before taxes | $ | 1,130 |  | $ | 1,458 |  | $ | 1,430 |  | $ | 1,997 |  | $ | 1,631 |
Sub-total of fixed charges |  | 267 |  |  | 269 |  |  | 284 |  |  | 270 |  |  | 279 |
Sub-total of adjusted income (loss) |  | 1,397 |  |  | 1,727 |  |  | 1,714 |  |  | 2,267 |  |  | 1,910 |
Interest on annuities and financial products |  | 2,584 |  |  | 2,554 |  |  | 2,506 |  |  | 2,508 |  |  | 2,486 |
Adjusted income (loss) base | $ | 3,981 |  | $ | 4,281 |  | $ | 4,220 |  | $ | 4,775 |  | $ | 4,396 |
Fixed Charges |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Interest and debt expense (1) | $ | 253 |  | $ | 268 |  | $ | 272 |  | $ | 267 |  | $ | 265 |
Interest expense (income) related to uncertain tax positions |  | - |  |  | (14 | ) |  | (2 | ) |  | (11 | ) |  | 2 |
Portion of rent expense representing interest |  | 14 |  |  | 15 |  |  | 14 |  |  | 14 |  |  | 12 |
Sub-total of fixed charges excluding interest on |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
annuities and financial products |  | 267 |  |  | 269 |  |  | 284 |  |  | 270 |  |  | 279 |
Interest on annuities and financial products |  | 2,584 |  |  | 2,554 |  |  | 2,506 |  |  | 2,508 |  |  | 2,486 |
Total fixed charges | $ | 2,851 |  | $ | 2,823 |  | $ | 2,790 |  | $ | 2,778 |  | $ | 2,765 |
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Ratio of sub-total of adjusted income (loss) to sub-total |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
of fixed charges excluding interest on annuities and |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
financial products |  | 5.23 |  |  | 6.42 |  |  | 6.04 |  |  | 8.40 |  |  | 6.85 |
Ratio of adjusted income (loss) base to total fixed |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
charges |  | 1.40 |  |  | 1.52 |  |  | 1.51 |  |  | 1.72 |  |  | 1.59 |

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| (1) |  | Intere st and debt expense excludes a $63 million loss related to the early r etirement of debt in 201 6.

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