STATEMENT OF RATIO OF EARNINGS TO FIXED CHARGES
Published on
Exhibit 12.1
PRUDENTIAL FINANCIAL, INC.
RATIO OF EARNINGS TO FIXED CHARGES
| Six months June 30, 2007 |
Three months June 30, 2007 |
Year Ended December 31, | ||||||||||||||||||||
| 2006 | 2005 | 2004 | 2003 | 2002 | ||||||||||||||||||
| ($ in millions) | ||||||||||||||||||||||
| Earnings: |
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| Income from continuing operations before income taxes, extraordinary gain on acquisition and cumulative effect of accounting change |
$ | 2,790 | $ | 1,243 | $ | 4,716 | $ | 4,488 | $ | 3,338 | $ | 1,948 | $ | 30 | ||||||||
| Undistributed income (loss) of investees accounted for under the equity method |
186 | 81 | 101 | 306 | 116 | 94 | (37 | ) | ||||||||||||||
| Interest capitalized |
— | — | — | — | — | — | 8 | |||||||||||||||
| Adjusted earnings |
2,604 | 1,162 | 4,615 | 4,182 | 3,222 | 1,854 | 59 | |||||||||||||||
| Add fixed charges: |
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| Interest credited to policyholders’ account balances |
1,568 | 725 | 2,917 | 2,699 | 2,359 | 1,857 | 1,869 | |||||||||||||||
| Gross interest expense(1) |
693 | 352 | 1,161 | 775 | 492 | 403 | 435 | |||||||||||||||
| Interest component of rental expense |
31 | 16 | 58 | 64 | 66 | 103 | 150 | |||||||||||||||
| Total fixed charges |
2,292 | 1,093 | 4,136 | 3,538 | 2,917 | 2,363 | 2,454 | |||||||||||||||
| Total earnings plus fixed charges |
$ | 4,896 | $ | 2,255 | $ | 8,751 | $ | 7,720 | $ | 6,139 | $ | 4,217 | $ | 2,513 | ||||||||
| Ratio of earnings to fixed charges |
2.14 | 2.06 | 2.12 | 2.18 | 2.10 | 1.78 | 1.02 | |||||||||||||||
| (1) | Interest expense on short-term and long-term debt. 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. |