ITEM 15, FORM 10-K -EXHIBIT 12.1 STATEMENT OF RATIO OF EARNINGS TO FIXED CHARGES
Published on
Exhibit 99.10
PRUDENTIAL FINANCIAL, INC.
RATIO OF EARNINGS TO FIXED CHARGES
| 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 |
$ | 4,716 | $ | 4,488 | $ | 3,338 | $ | 1,948 | $ | 30 | ||||||
| Undistributed income (loss) of investees accounted for under the equity method |
101 | 306 | 116 | 94 | (37 | ) | ||||||||||
| Interest capitalized |
— | — | — | — | 8 | |||||||||||
| Adjusted earnings |
4,615 | 4,182 | 3,222 | 1,854 | 59 | |||||||||||
| Add fixed charges: |
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| Interest credited to policyholders’ account balances |
2,917 | 2,699 | 2,359 | 1,857 | 1,869 | |||||||||||
| Gross interest expense(1) |
1,161 | 775 | 492 | 403 | 435 | |||||||||||
| Interest component of rental expense |
58 | 64 | 66 | 103 | 150 | |||||||||||
| Total fixed charges |
4,136 | 3,538 | 2,917 | 2,363 | 2,454 | |||||||||||
| Total earnings plus fixed charges |
$ | 8,751 | $ | 7,720 | $ | 6,139 | $ | 4,217 | $ | 2,513 | ||||||
| Ratio of earnings to fixed charges |
2.12 | 2.18 | 2.10 | 1.78 | 1.02 | |||||||||||
| (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. |