STATEMENT OF RATIO OF EARNINGS TO FIXED CHARGES
Published on
Exhibit 12.1
PRUDENTIAL FINANCIAL, INC.
RATIO OF EARNINGS TO FIXED CHARGES
| Three Months Ended March 31, 2005 |
Year Ended December 31, | |||||||||||||||||||
| 2004 |
2003 |
2002 |
2001 |
2000 | ||||||||||||||||
| ($ in millions) | ||||||||||||||||||||
| Earnings: |
||||||||||||||||||||
| Income (loss) from continuing operations before income taxes, extraordinary gain on acquisition and cumulative effect of accounting change |
$ | 1,309 | $ | 3,287 | $ | 1,979 | $ | 82 | $ | (125 | ) | $ | 675 | |||||||
| Undistributed income (loss) of investees accounted for under the equity method |
57 | 196 | 119 | (37 | ) | 29 | 25 | |||||||||||||
| Interest capitalized |
— | — | — | 8 | 6 | — | ||||||||||||||
| Adjusted earnings |
1,252 | 3,091 | 1,860 | 111 | (160 | ) | 650 | |||||||||||||
| Add fixed charges: |
||||||||||||||||||||
| Interest credited to policyholders’ account balances |
553 | 2,334 | 1,830 | 1,846 | 1,804 | 1,751 | ||||||||||||||
| Gross interest expense(1) |
159 | 492 | 403 | 435 | 653 | 1,056 | ||||||||||||||
| Interest component of rental expense |
18 | 66 | 103 | 150 | 173 | 166 | ||||||||||||||
| Total fixed charges |
730 | 2,892 | 2,336 | 2,431 | 2,630 | 2,973 | ||||||||||||||
| Total earnings plus fixed charges |
$ | 1,982 | $ | 5,983 | $ | 4,196 | $ | 2,542 | $ | 2,470 | $ | 3,623 | ||||||||
| Ratio of earnings to fixed charges(2) |
2.72 | 2.07 | 1.80 | 1.05 | — | 1.22 | ||||||||||||||
| (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 $160 million would have been required in 2001 to achieve a ratio of 1:1. |