Prudential Financial, Inc. 5.62 (PRS) 10-Q 2018 Q1 Quarterly report

Exhibit 12.1

PRUDENTIAL FINANCIAL, INC.

RATIO OF EARNINGS TO FIXED CHARGES

	Three Months Ended			Year Ended December 31,
	March 31, 2018			2017		2016		2015			2014		2013
	($ in millions)
Earnings:
Income (loss) from continuing operations before income taxes(1)	$	1,718		$	6,454	$	5,710	$	7,711		$	1,715	$	(1,712	)
Less:
Undistributed income (loss) of investees accounted for under the equity method	(7		)	275		12		(280		)	134		223
Interest capitalized	0			0		0		0			0		0
Total earnings	1,725			6,179		5,698		7,991			1,581		(1,935		)
Add fixed charges:
Interest credited to policyholders’ account balances	550			3,822		3,761		3,479			4,263		3,111
Gross interest expense(2)	343			1,334		1,324		1,328			1,934		1,419
Interest component of rental expense	22			86		84		77			75		85
Total fixed charges	915			5,242		5,169		4,884			6,272		4,615
Total earnings plus fixed charges	$	2,640		$	11,421	$	10,867	$	12,875		$	7,853	$	2,680
Ratio of earnings to fixed charges(3)	2.89			2.18		2.10		2.64			1.25		0.00

__________

(1) Excludes earnings attributable to noncontrolling interests.

(2) Interest expense on short-term and long-term debt, including 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. Interest expense does not include interest on liabilities recorded under the authoritative guidance on accounting for uncertainty in income taxes. The Company’s policy is to classify such interest in income tax provision in the Consolidated Statements of Operations.

(3) Due to the Company’s loss for the twelve months ended December 31, 2013, the ratio coverage was less than 1:1 and is therefore not presented. Additional earnings of $1,935 million would have been required for the twelve months ended December 31, 2013, to achieve a ratio of 1:1.