Prudential 2011 Annual Report Download - page 118

When we determine that there is an other-than-temporary impairment, we record a writedown to estimated fair value, which reduces
the cost basis and is included in “Realized investment gains (losses), net.” See Note 2 to the Consolidated Financial Statements for
additional information regarding our policies around other-than-temporary impairments for equity securities. See Note 20 to the
Consolidated Financial Statements for information regarding the fair value methodology used for equity securities.
Impairments of equity securities attributable to the Financial Services Businesses were $94 million and $78 million for the years
ended December 31, 2011 and 2010, respectively. Impairments of equity securities attributable to the Closed Block Business were $18
million and $34 million for years ended December 31, 2011 and 2010, respectively. For a further discussion of impairments, see
“—Realized Investment Gains and Losses” above.
Other Long-Term Investments
“Other long-term investments” are comprised as follows:
December 31, 2011 December 31, 2010
Financial
Services
Businesses
Closed
Block
Business
Financial
Services
Businesses
Closed
Block
Business
(in millions)
Joint ventures and limited partnerships:
Real estate-related ................................................................ $ 360 $ 413 $ 163 $ 361
Non-real estate-related ............................................................. 1,733 1,284 1,070 1,162
Real estate held through direct ownership(1) ............................................... 1,956 10 1,141 1
Other(2) ............................................................................ 432 283 614 58
Total other long-term investments .................................................... $4,481 $1,990 $2,988 $1,582
(1) Primarily includes investment in office buildings within our Japanese insurance operations.
(2) Primarily includes derivatives and member and activity stock held in the Federal Home Loan Banks of New York and Boston. For additional
information regarding our holdings in the Federal Home Loan Banks of New York and Boston, see Note 14 to the Consolidated Financial Statements.
Invested Assets of Other Entities and Operations
The following table sets forth the composition of the investments held outside the general account in other entities and operations as of
the dates indicated.
December 31,
2011 2010
(in millions)
Fixed Maturities:
Public, available-for-sale, at fair value .......................................................................... $ 2,026 $2,046
Private, available-for-sale, at fair value ......................................................................... 82 75
Other trading account assets, at fair value ........................................................................... 3,124 2,849
Equity securities, available-for-sale, at fair value ...................................................................... 12 13
Commercial mortgage and other loans, at book value(1) ................................................................ 1,318 1,423
Other long-term investments ...................................................................................... 1,349 1,601
Short-term investments .......................................................................................... 2,984 435
Total investments ...................................................................................... $10,895 $8,442
(1) Book value is generally based on unpaid principal balance net of any allowance for losses, the lower of cost or fair value, or fair value, depending on the
loan.
The table above includes the invested assets of our trading, banking, and asset management operations. Assets of our asset
management operations managed for third parties and those assets classified as “Separate account assets” on our balance sheet are not
included.
Fixed Maturity Securities
Fixed maturity securities primarily include investments related to our non-retail banking operations, where customer deposit liabilities
are primarily supported by fixed maturity and short-term investments, in addition to cash and cash equivalents.
116 Prudential Financial, Inc. 2011 Annual Report