Prudential 2002 Annual Report Download - page 155
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Please find page 155 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
23. QUARTERLY RESULTS OF OPERATIONS (UNAUDITED) (continued)
Three months ended
March 31 June 30 September 30 December 31
(in millions, except per share amounts)
2001
Totalrevenues....................................................... $6,717 $7,141 $6,333 $6,880
Total benefits and expenses ............................................ 5,985 6,968 6,813 7,446
Income (loss) from continuing operations before income taxes ................. 732 173 (480) (566)(b)
Netincome(loss) .................................................... 437 195 (280) (506)(b)
Basic and diluted income from continuing operations per share—Common Stock . . 0.07(c)
Basic and diluted net income per share—Common Stock ..................... 0.07(c)
Basic and diluted net income per share—Class B Stock ...................... 1.50(c)
(a) Quarterly earnings per share amounts may not add to the full year amounts due to the averaging of shares.
(b) Income from continuing operations and net income for the period December 18, 2001 through December 31, 2001 were $43 million and
$41 million, respectively.
(c) Earnings per share amounts for 2001 are for the period December 18, 2001 through December 31, 2001.
24. OTHER EVENTS
On December 20, 2002, the Company announced it had entered into a definitive Stock Purchase Agreement,
dated as of December 19, 2002, with Skandia Insurance Company Ltd. (“Skandia”), an insurance company based
in Sweden, pursuant to which the Company will acquire Skandia U.S. Inc., a Delaware corporation (“Skandia
U.S.”), from Skandia. The total consideration payable in the transaction includes a cash purchase price of $1.15
billion and the assumption of a $115 million liability, subject to certain purchase price adjustments. The
transaction, which is anticipated to close in the second quarter of 2003, is subject to various closing conditions,
including, among others, regulatory approvals, filing under the Hart-Scott-Rodino Antitrust Improvements Act
and approval by the boards of directors and shareholders of the mutual funds advised by Skandia U.S.’s
subsidiaries.
In February 2003, the Company announced an agreement with Wachovia Corporation (“Wachovia”) to
combine each company’s respective retail securities brokerage and clearing operations to form a new firm, which
will be headquartered in Richmond, Virginia. Under the agreement, Prudential will have a 38% ownership interest
in the new firm, which will be accounted for under the equity method of accounting; Wachovia will own the
remaining 62%. The transaction, which includes the securities brokerage operations of the Financial Advisory
segment, but does not include equity sales, trading and research operations or consumer banking operations of the
same segment, is anticipated to close in the third quarter of 2003. This transaction is subject, among other things,
to various regulatory approvals and filings and customary closing conditions.
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