Prudential 2002 Annual Report Download - page 20
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Please find page 20 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.TABLE OF CONTENTS
Page
Number
Selected Financial Data ................................................................. 20
Management’s Discussion and Analysis of Financial Condition and Results of Operations ............ 23
Quantitative and Qualitative Disclosures About Market Risk ................................... 80
Consolidated Financial Statements:
Report of Independent Accountants ................................................... 86
Consolidated Statements of Financial Position as of December 31, 2002 and 2001 .............. 87
Consolidated Statements of Operations for the years ended December 31, 2002, 2001 and 2000 . . . 88
Consolidated Statements of Stockholders’ Equity for the years ended December 31, 2002, 2001
and 2000 ...................................................................... 89
Consolidated Statements of Cash Flows for the years ended December 31, 2002, 2001 and 2000 . . . 90
Notes to Consolidated Financial Statements ............................................. 91
Supplemental Combining Financial Information ......................................... 155
Market for Common Equity and Related Stockholder Matters .................................. 159
“Prudential Financial” refers to Prudential Financial, Inc., the ultimate holding company for all of our
companies. “Prudential Insurance” refers to The Prudential Insurance Company of America, before and after
its demutualization on December 18, 2001 (the “date of demutualization”). “Prudential,” the “Company,”
“we” and “our” refer to our consolidated operations before and after demutualization. The “Plan of
Reorganization” refers to Prudential Insurance’s Plan of Reorganization, dated as of December 15, 2000 and
as amended from time to time thereafter, relating to Prudential Insurance’s demutualization. The consolidated
financial statements of Prudential Insurance for financial statement periods prior to the demutualization in
December 2001 became the historical Consolidated Financial Statements of Prudential Financial.
Financial Services Businesses and Closed Block Business
Effective with the date of demutualization, we established the Financial Services Businesses and the Closed
Block Business. The Financial Services Businesses refer to the businesses in our three operating divisions and our
Corporate and Other operations. The Insurance division consists of our Individual Life and Annuities, Group
Insurance and Property and Casualty Insurance segments. The Investment division consists of our Investment
Management, Financial Advisory, Retirement and Other Asset Management segments. The International
Insurance and Investments division consists of our International Insurance and International Investments
segments. The Common Stock reflects the performance of the Financial Services Businesses, but there can be no
assurance that the market value of the Common Stock will reflect solely the financial performance of these
businesses. The Class B Stock, which was issued in a private placement on the date of the demutualization,
reflects the financial performance of the Closed Block Business, as defined in Note 21 to the Consolidated
Financial Statements.
We allocate all of our assets, liabilities and earnings between the Financial Services Businesses and Closed
Block Business as if they were separate legal entities, but there is no legal separation between these two
businesses. Holders of both the Common Stock and the Class B Stock are common stockholders of Prudential
Financial and, as such, are subject to all the risks associated with an investment in Prudential Financial and all of
its businesses. The Common Stock and the Class B Stock will be entitled to dividends, if and when declared by
Prudential Financial’s Board of Directors from funds legally available to pay them, as if the businesses were
separate legal entities. See Note 14 to the Consolidated Financial Statements for a discussion of liquidation rights
of the Common Stock and the Class B Stock, dividend restrictions on the Common Stock if we do not pay
dividends on the Class B Stock when there are funds legally available to pay them and conversion rights of the
Class B Stock.
Prudential Financial 2002 Annual Report 19