EX-12.1 2 pru-20170331x10qxexh121.htm EXHIBIT 12.1 Exhibit

Exhibit 12.1
PRUDENTIAL FINANCIAL, INC.
RATIO OF EARNINGS TO FIXED CHARGES

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended
 
Year Ended December 31,
 
 
March 31, 2017
 
2016
 
2015
 
2014
 
2013
 
2012
 
 
($ in millions)
Earnings:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Income (loss) from continuing operations before income taxes (1)
 
$
1,770

 
$
5,710

 
$
7,711

 
$
1,715

 
$
(1,712
)
 
$
737

Less:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Undistributed income (loss) of investees accounted for under the equity method
 
 
145

 
 
12

 
 
(280
)
 
 
134

 
 
223

 
 
107

Interest capitalized
 
 
0

 
 
0

 
 
0

 
 
0

 
 
0

 
 
0

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Adjusted earnings
 
 
1,625

 
 
5,698

 
 
7,991

 
 
1,581

 
 
(1,935
)
 
 
630

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Add fixed charges:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest credited to policyholders’ account balances
 
 
940

 
 
3,761

 
 
3,479

 
 
4,263

 
 
3,111

 
 
4,234

Gross interest expense (2)
 
 
325

 
 
1,324

 
 
1,328

 
 
1,934

 
 
1,419

 
 
1,389

Interest component of rental expense
 
 
21

 
 
84

 
 
77

 
 
75

 
 
85

 
 
96

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total fixed charges
 
 
1,286

 
 
5,169

 
 
4,884

 
 
6,272

 
 
4,615

 
 
5,719

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total earnings plus fixed charges
 
$
2,911

 
$
10,867

 
$
12,875

 
$
7,853

 
$
2,680

 
$
6,349

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Ratio of earnings to fixed charges (3)
 
 
2.26

 
 
2.10

 
 
2.64

 
 
1.25

 
 
0.00

 
 
1.11

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

(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.