EX-12.1 3 d541449dex121.htm EX-12.1 EX-12.1

Exhibit 12.1

PRUDENTIAL FINANCIAL, INC.

RATIOS OF EARNINGS TO FIXED CHARGES

 

     Year Ended December 31,  
     2017      2016      2015     2014      2013  

Earnings:

             

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

   $ 6,454      $ 5,710      $ 7,711     $ 1,715      $ (1,712

Less:

             

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

     275        12        (280     134        223  

Interest capitalized

     0        0        0       0        0  
  

 

 

    

 

 

    

 

 

   

 

 

    

 

 

 

Adjusted earnings

     6,179        5,698        7,991       1,581        (1,935
  

 

 

    

 

 

    

 

 

   

 

 

    

 

 

 

Add fixed charges:

             

Interest credited to policyholders’ account balances

     3,822        3,761        3,479       4,263        3,111  

Gross interest expense(2)

     1,334        1,324        1,328       1,934        1,419  

Interest component of rental expense

     86        84        77       75        85  
  

 

 

    

 

 

    

 

 

   

 

 

    

 

 

 

Total fixed charges

     5,242        5,169        4,884       6,272        4,615  
  

 

 

    

 

 

    

 

 

   

 

 

    

 

 

 

Total earnings plus fixed charges

   $ 11,421      $ 10,867      $ 12,875     $ 7,853      $ 2,680  
  

 

 

    

 

 

    

 

 

   

 

 

    

 

 

 

Ratio of earnings to fixed charges

     2.18        2.10        2.64       1.25        0.00 (3) 
  

 

 

    

 

 

    

 

 

   

 

 

    

 

 

 

 

(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 Company’s 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.