Prudential 2002 Annual Report Download - page 31
Download and view the complete annual report
Please find page 31 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.can vary considerably across periods. In addition, the timing of other sales that would result in gains or losses is
subject to our discretion. Including the fluctuating effects of these transactions could distort trends in the
underlying profitability of our businesses. We exclude sales practices remedies and costs relating to the settlement
of individual life insurance sales practices issues for the period from 1982 through 1995 because they relate to a
substantial and identifiable non-recurring event. We exclude contribution to income/loss of businesses we
divested because, as a result of our decision to dispose of these businesses, these results are not relevant to the
profitability of our ongoing operations and could distort the trends associated with our ongoing operations. We
also exclude demutualization costs and expenses because they are directly related to our demutualization and
could distort the trends associated with our business operations.
The tables below summarize certain financial data, including year-over-year variances, for the Financial
Services Businesses on both a GAAP and adjusted operating income basis, as well as the results of the Closed
Block Business on a GAAP basis. Following these tables, you will find a detailed discussion of Financial Services
Businesses results of operations by segment, as well as results of operations of the Closed Block Business.
For the year ended
December 31, Favorable (Unfavorable)
2002 2001 2000
2002 to 2001
Comparison
2001 to 2000
Comparison
(in millions)
Income from continuing operations before income taxes:
Financial Services Businesses:
Insurance Division .............................................. $273 $373 $ 571 $(100) $(198)
Investment Division ............................................. (28) 76 718 (104) (642)
International Insurance and Investments Division ...................... 574 513 257 61 256
Corporate and Other ............................................. 2 (484) (1,016) 486 532
Total Financial Services Businesses .............................. 821 478 530 343 (52)
Closed Block Business(1) .......................................... (757) (619) 193 (138) (812)
Income (loss) from continuing operations before income taxes ............... 64 (141) 723 205 (864)
Income tax expense (benefit)(2) ....................................... (192) (34) 398 158 432
Income (loss) from continuing operations ................................ 256 (107) 325 363 (432)
Income (loss) from discontinued operations, net of tax(3) ................... (62) (47) 73 (15) (120)
Netincome........................................................ $194 $(154) $ 398 $ 348 $(552)
(1) See “—Results of Operations for Financial Services Businesses by Division and Closed Block Business—Closed Block Business” for a
discussion of the results of our Closed Block Business.
(2) See “—Income Taxes” for a discussion of our income tax expense.
(3) See “—Discontinued Operations” for a discussion of the results of our discontinued operations.
Growing and Protecting Your Wealth30