Prudential 2002 Annual Report Download - page 126
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Please find page 126 of the 2002 Prudential annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.PRUDENTIAL FINANCIAL, INC.
Notes to Consolidated Financial Statements
14. STOCKHOLDERS’ EQUITY (continued)
Treasury stock is accounted for at cost. When treasury stock is reissued, the treasury stock balance is reduced
by the average cost per share.
Comprehensive Income
The components of comprehensive income for the years ended December 31, are as follows:
2002 2001 2000
(in millions)
Netincome(loss) .............................................................. $ 194 $(154) $ 398
Other comprehensive income, net of tax:
Change in foreign currency translation adjustments ............................... 83 (130) (89)
Change in net unrealized investments gains ..................................... 1,606 869 1,019
Additional pension liability adjustment ......................................... (48) (29) (11)
Other comprehensive income, net of tax of $818, $568, $629 ........................... 1,641 710 919
Comprehensiveincome ......................................................... $1,835 $556 $1,317
The balance of and changes in each component of “Accumulated other comprehensive income (loss)” for the
years ended December 31, are as follows (net of taxes):
Accumulated Other Comprehensive Income (Loss)
Foreign
Currency
Translation
Adjustments
Net
Unrealized
Investment
Gains (Losses)
Pension
Liability
Adjustment
Total
Accumulated
Other
Comprehensive
Income (Loss)
(in millions)
Balance, December 31, 1999 ........................ $ (18) $ (660) $ (7) $ (685)
Change in component during year ................ (89) 1,019 (11) 919
Balance, December 31, 2000 ........................ (107) 359 (18) 234
Change in component during year ................ (130) 869 (29) 710
Balance, December 31, 2001 ........................ (237) 1,228 (47) 944
Change in component during year ................ 83 1,606 (48) 1,641
Balance, December 31, 2002 ........................ $(154) $2,834 $(95) $2,585
Statutory Net Income and Surplus
Prudential Financial’s U.S. insurance subsidiaries are required to prepare statutory financial statements in
accordance with statutory accounting practices prescribed or permitted by the insurance department of the state of
domicile. Statutory accounting practices primarily differ from GAAP by charging policy acquisition costs to
expense as incurred, establishing future policy benefit liabilities using different actuarial assumptions as well as
valuing investments and certain assets and accounting for deferred taxes on a different basis. Statutory net income
(loss) of Prudential Insurance amounted to $(490) million, $(896) million and $149 million for the years ended
December 31, 2002, 2001 and 2000, respectively. Statutory capital and surplus of Prudential Insurance amounted
to $5,699 million and $6,420 million at December 31, 2002 and 2001, respectively.
15. EARNINGS PER SHARE
The Company has outstanding two separate classes of common stock. The Common Stock reflects the
performance of the Financial Services Businesses and the Class B Stock reflects the performance of the Closed
Prudential Financial 2002 Annual Report 125