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, 2007 |
Year Ended December 31, |
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| 2006 |
2005 |
2004 |
2003 |
2002 |
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| ($ in millions) | |||||||||||||||||||
| Earnings: |
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| Income from continuing operations before income taxes, extraordinary gain on acquisition and cumulative effect of accounting change |
$ | 1,549 | $ | 4,725 | $ | 4,502 | $ | 3,357 | $ | 1,965 | $ | 89 | |||||||
| Undistributed income (loss) of investees accounted for under the equity method |
105 | 101 | 306 | 116 | 94 | (37 | ) | ||||||||||||
| Interest capitalized |
— | — | — | — | — | 8 | |||||||||||||
| Adjusted earnings |
1,444 | 4,624 | 4,196 | 3,241 | 1,871 | 118 | |||||||||||||
| Add fixed charges: |
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| Interest credited to policyholders’ account balances |
843 | 2,917 | 2,699 | 2,359 | 1,857 | 1,869 | |||||||||||||
| Gross interest expense(1) |
341 | 1,161 | 775 | 492 | 403 | 435 | |||||||||||||
| Interest component of rental expense |
15 | 58 | 64 | 66 | 103 | 150 | |||||||||||||
| Total fixed charges |
1,199 | 4,136 | 3,538 | 2,917 | 2,363 | 2,454 | |||||||||||||
| Total earnings plus fixed charges |
$ | 2,643 | $ | 8,760 | $ | 7,734 | $ | 6,158 | $ | 4,234 | $ | 2,572 | |||||||
| Ratio of earnings to fixed charges |
2.20 | 2.12 | 2.19 | 2.11 | 1.79 | 1.05 | |||||||||||||
| (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. |