Exhibit 12.1
PRUDENTIAL FINANCIAL, INC.
RATIO OF EARNINGS TO FIXED CHARGES
For the Nine
Months Ended
September 30, For the Year Ended December 31,
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2001 2000 1999 1998 1997 1996
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(in millions)
Earnings:
Income from continuing
operations before income
taxes.................... $ 382 $ 727 $2,255 $2,597 $1,370 $1,540
Undistributed income of
investees accounted for
under the equity method.. 13 33 (14) 62 13 (60)
Interest capitalized...... 4 -- -- -- -- --
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Adjusted earnings....... 365 694 2,269 2,535 1,357 1,600
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Add fixed charges:
Interest credited to
policyholders' account
balances................. $1,338 $1,751 $1,811 $1,953 $2,170 $2,251
Gross interest
expense(1)............... 548 1,056 863 917 743 618
One-third of rental
expense.................. 122 169 167 167 165 157
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Total fixed charges....... 2,008 2,976 2,841 3,037 3,078 3,026
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Total earnings plus
fixed charges.......... $2,373 $3,670 $5,110 $5,572 $4,435 $4,626
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Ratio of earnings to fixed
charges.................... 1.18 1.23 1.80 1.83 1.44 1.53
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(1) Includes Securities business related interest expense which is included in
"Net investment income" in the Consolidated Statements of Operations,
interest which has been capitalized and amortization of debt discounts,
premiums and issue costs.