EX-12.1 3 pru10-kexhibit121.htm EXHIBIT 12.1 Exhibit


Exhibit 12.1
 
PRUDENTIAL FINANCIAL, INC.
RATIO OF EARNINGS TO FIXED CHARGES
 
 
 
Year Ended December 31,
 
 
2015
 
2014
 
2013
 
2012
 
2011
Earnings:
 
 
 
 
 
 
 
 
 
 
Income (loss) from continuing operations before income taxes(1)
 
$
7,711

 
$
1,715

 
$
(1,712
)
 
$
737

 
$
5,191

Less:
 
 
 
 
 
 
 
 
 
 
Undistributed income (loss) of investees accounted for under the equity method
 
(280
)
 
134

 
223

 
107

 
286

Interest capitalized
 
—

 
—

 
—

 
—

 
—

Adjusted earnings
 
7,991

 
1,581

 
(1,935
)
 
630

 
4,905

Add fixed charges:
 
 
 
 
 
 
 
 
 
 
Interest credited to policyholders’ account balances
 
3,479

 
4,263

 
3,111

 
4,234

 
4,484

Gross interest expense(2)
 
1,328

 
1,934

 
1,419

 
1,389

 
1,315

Interest component of rental expense
 
77

 
75

 
85

 
96

 
93

Total fixed charges
 
4,884

 
6,272

 
4,615

 
5,719

 
5,892

Total earnings plus fixed charges
 
$
12,875

 
$
7,853

 
$
2,680

 
$
6,349

 
$
10,797

Ratio of earnings to fixed charges(3)
 
2.64

 
1.25

 
—

 
1.11

 
1.83

 
(1)
Excludes earnings attributable to noncontrolling interests.
(2)
Interest expense on short-term and long-term debt, including interest expense of securities businesses reported in “Net investment income” in the Consolidated Statements of Operations, capitalized interest and amortization of debt discounts and premiums. Interest expense does not include interest on liabilities recorded under the authoritative guidance on accounting for uncertainty in income taxes. The Company’s policy is to classify such interest in income tax provision in the consolidated statements of operations.
(3)
Due to the Company’s loss for the twelve months ended December 31, 2013, the ratio coverage was less than 1:1 and is therefore not presented. Additional earnings of $1,935 million would have been required for the twelve months ended December 31, 2013, to achieve a ratio of 1:1.