Prudential 2011 Annual Report Download - page 115

Equity Securities—Financial Services Businesses
December 31, 2011 December 31, 2010
Cost
Gross
Unrealized
Gains
Gross
Unrealized
Losses
Fair
Value Cost
Gross
Unrealized
Gains
Gross
Unrealized
Losses
Fair
Value
(in millions)
Public Equity
Perpetual preferred stocks(1) ........................... $ 0 $ 0 $ 0 $ 0 $ 249 $ 19 $14 $ 254
Non-redeemable preferred stocks ........................ 1 1 0 2 9 4 0 13
Mutual fund common stocks(2) ......................... 1,708 428 2 2,134 1,592 462 0 2,054
Other common stocks ................................. 2,400 75 272 2,203 1,267 112 44 1,335
Total public equity ............................... 4,109 504 274 4,339 3,117 597 58 3,656
Private Equity
Perpetual preferred stocks(1) ........................... 0 0 0 0 449 15 16 448
Non-redeemable preferred stocks ........................ 18 0 1 17 15 0 5 10
Common stock ...................................... 28 17 0 45 12 10 1 21
Total private equity(3) ............................ 46 17 1 62 476 25 22 479
Total equity ..................................... $4,155 $521 $275 $4,401 $3,593 $622 $80 $4,135
(1) During 2011, perpetual preferred stocks of $1.2 billion were reclassified to “Other trading account assets.” Prior periods were not restated.
(2) Includes mutual fund shares representing our interest in the underlying assets of certain of our separate account investments supporting corporate-owned
life insurance. These mutual funds invest primarily in high yield bonds.
(3) Hedge funds and other alternative investments are included in “Other long-term investments.”
The following table sets forth the composition of our equity securities portfolio attributable to the Closed Block Business and the
associated gross unrealized gains and losses as of the dates indicated.
Equity Securities—Closed Block Business
December 31, 2011 December 31, 2010
Cost
Gross
Unrealized
Gains
Gross
Unrealized
Losses
Fair
Value Cost
Gross
Unrealized
Gains
Gross
Unrealized
Losses
Fair
Value
(in millions)
Public Equity
Perpetual preferred stocks(1) ........................... $ 0 $ 0 $ 0 $ 0 $ 133 $ 11 $ 4 $ 140
Non-redeemable preferred stocks ........................ 2 0 0 2 0 0 0 0
Common stock ...................................... 2,746 538 173 3,111 2,725 759 37 3,447
Total public equity ............................... 2,748 538 173 3,113 2,858 770 41 3,587
Private Equity
Perpetual preferred stocks(1) ........................... 0 0 0 0 0 0 0 0
Non-redeemable preferred stocks ........................ 9 0 0 9 6 0 0 6
Common stock ...................................... 0 0 0 0 0 0 0 0
Total private equity .............................. 9 0 0 9 6 0 0 6
Total equity ..................................... $2,757 $538 $173 $3,122 $2,864 $770 $41 $3,593
(1) During 2011, perpetual preferred stocks of $0.1 billion were reclassified to “Other trading account assets.” Prior periods were not restated.
Unrealized Losses from Equity Securities
The following table sets forth the cost and gross unrealized losses of our equity securities attributable to the Financial Services
Businesses where the estimated fair value had declined and remained below cost by less than 20% for the following timeframes:
Unrealized Losses from Equity Securities, Less than 20%—Financial Services Businesses
December 31, 2011 December 31, 2010
Amortized
Cost(1)
Gross
Unrealized
Losses(1)
Amortized
Cost(1)
Gross
Unrealized
Losses(1)
(in millions)
Less than three months ............................................................ $ 508 $ 31 $108 $ 2
Three months or greater but less than six months ........................................ 551 54 226 13
Six months or greater but less than nine months ......................................... 191 24 269 19
Nine months or greater but less than twelve months ...................................... 193 35 20 3
Greater than twelve months(2) ...................................................... 0 0 302 18
Total ...................................................................... $1,443 $144 $925 $55
Prudential Financial, Inc. 2011 Annual Report 113