STATEMENT OF RATIO OF EARNINGS TO FIXED CHARGES
Published on
Exhibit 12.1
PRUDENTIAL FINANCIAL, INC.
RATIO OF EARNINGS TO FIXED CHARGES
| For the Nine Months Ended September 30, 2004 |
For the Three Months Ended September 30, 2004 |
For the Year Ended December 31, |
||||||||||||||||||||||
| 2003 |
2002 |
2001 |
2000 |
1999 |
||||||||||||||||||||
| Earnings: |
||||||||||||||||||||||||
| Income (loss) from continuing operations before income taxes, extraordinary gain on acquisition and cumulative effect of accounting change |
$ | 2,435 | $ | 1,056 | $ | 1,958 | $ | 80 | $ | (121 | ) | $ | 693 | $ | 2,222 | |||||||||
| Undistributed income (loss) of investees accounted for under the equity method |
93 | 15 | 119 | (37 | ) | 29 | 25 | (14 | ) | |||||||||||||||
| Interest capitalized |
— | — | — | 8 | 6 | — | — | |||||||||||||||||
| Adjusted earnings |
2,342 | 1,041 | 1,839 | 109 | (156 | ) | 668 | 2,236 | ||||||||||||||||
| Add fixed charges: |
||||||||||||||||||||||||
| Interest credited to policyholders’ account balances |
1,616 | 693 | 1,830 | 1,846 | 1,804 | 1,751 | 1,811 | |||||||||||||||||
| Gross interest expense (1) |
343 | 131 | 403 | 435 | 653 | 1,056 | 863 | |||||||||||||||||
| One-third of rental expense |
51 | 17 | 103 | 150 | 173 | 166 | 167 | |||||||||||||||||
| Total fixed charges |
2,010 | 841 | 2,336 | 2,431 | 2,630 | 2,973 | 2,841 | |||||||||||||||||
| Total earnings plus fixed charges |
$ | 4,352 | $ | 1,882 | $ | 4,175 | $ | 2,540 | $ | 2,474 | $ | 3,641 | $ | 5,077 | ||||||||||
| Ratio of earnings to fixed charges (2) |
2.16 | 2.24 | 1.79 | 1.04 | 0.94 | 1.22 | 1.79 | |||||||||||||||||
| (1) | 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. |
| (2) | Due to the Company’s loss in 2001, the ratio coverage was less than 1:1. Additional earnings of $156 million would have been required in 2001 to achieve a ratio of 1:1. |