EX-12.1 2 d524014dex121.htm EX-12.1 EX-12.1

Exhibit 12.1

 

PRUDENTIAL FINANCIAL, INC.

RATIO OF EARNINGS TO FIXED CHARGES

 

     Three  Months
Ended
March 31, 2013		     Year Ended December 31,  
       2012      2011      2010      2009     2008  
     ($ in millions)  

Earnings:

                

Income (loss) from continuing operations before income taxes(1)

    $ (1,515 )    $ 677       $ 5,098       $ 4,235       $ 3,652      $ (2,154 ) 

Less:

                

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

      145        107         286         100         (172 )      (1,026 ) 

Interest capitalized

      —          —           —           —           —          5   
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

    

 

 

  

Adjusted earnings

      (1,660 )      570         4,812         4,135         3,824        (1,133 ) 
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

    

 

 

  

Add fixed charges:

                

Interest credited to policyholders’ account balances

      1,050        4,234         4,484         4,209         4,484        2,335   

Gross interest expense(2)

      364        1,389         1,315         1,224         1,168        1,401   

Interest component of rental expense

      21        96         93         69         69        64   
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

    

 

 

  

Total fixed charges

      1,435        5,719         5,892         5,502         5,721        3,800   
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

    

 

 

  

Total earnings plus fixed charges

    $ (225 )    $ 6,289       $ 10,704       $ 9,637       $ 9,545      $ 2,667   
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

    

 

 

  

Ratio of earnings to fixed charges(3)

      —          1.10         1.82         1.75         1.67        —     
  

 

 

    

 

 

     

 

 

     

 

 

     

 

 

    

 

 

  

 

(1) Excludes earnings attributable to noncontrolling interests. The year ended December 31, 2009 includes a $2.247 billion pre-tax gain related to the sale of the Company’s minority joint venture interest in Wachovia Securities.
(2) Interest expense on short-term and long-term debt. Includes 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 three months ended March 31, 2013 and the year ended December 31, 2008, the ratio coverage was less than 1:1 and is therefore not presented. Additional earnings of $1,660 million and $1,133 million would have been required for the three months ended March 31, 2013 and the year ended December 31, 2008, respectively, to achieve a ratio of 1:1.