Prudential 2011 Annual Report Download - page 239

PRUDENTIAL FINANCIAL, INC.
Notes to Consolidated Financial Statements
20. FAIR VALUE OF ASSETS AND LIABILITIES (continued)
Year Ended December 31, 2011
Other
Trading
Account
Assets-
Equity
Securities
Other
Trading
Account
Assets-
All Other
Activity
Equity
Securities
Available-
For-Sale
Commercial
Mortgage
and Other
Loans
Other
Long-term
Investments
(in millions)
Fair Value, beginning of period .......................................... $ 26 $134 $ 355 $ 212 $ 768
Total gains (losses) (realized/unrealized):
Included in earnings:
Realized investment gains (losses), net ........................ 0 (31) (16) 15 2
Asset management fees and other income ...................... (63) 3 0 0 (1)
Included in other comprehensive income (loss) 0 0 27 0 0
Net investment income ............................................ 0 0 0 0 (27)
Purchases ....................................................... 34 0 63 0 280
Sales ........................................................... (62) 0 (66) 0 (25)
Issuances ....................................................... 0 0 0 0 0
Settlements ...................................................... (111) (18) (46) (141) (168)
Foreign currency translation ........................................ 24 0 75 0 14
Other(1) ........................................................ 1,302 0 (853) 0 267
Transfers into Level 3(2) ........................................... 126 5 823 0 0
Transfers out of Level 3(2) ......................................... 0 0 (2) 0 0
Fair Value, end of period ............................................... $1,276 $ 93 $ 360 $ 86 $1,110
Unrealized gains (losses) for the period relating to those Level 3 assets that were
still held at the end of the period(3):
Included in earnings:
Realized investment gains (losses), net ........................ $ 0 $(31) $ (25) $ 15 $ 2
Asset management fees and other income ...................... $ (72) $ 3 $ 0 $ 0 $ 24
Included in other comprehensive income (loss) ..................... $ 0 $ 0 $ 47 $ 0 $ 0
Year Ended December 31, 2011
Other
Assets
Separate
Account
Assets(4)
Future
Policy
Benefits
Other
Liabilities
(in millions)
Fair Value, beginning of period .............................................................. $9 $15,792 $ 204 $ (3)
Total gains (losses) (realized/unrealized):
Included in earnings:
Realized investment gains (losses), net ............................................ 0 0 (2,554) (16)
Asset management fees and other income .......................................... 0 0 0 0
Interest credited to policyholders’ account ......................................... 0 2,868 0 0
Included in other comprehensive income (loss) .......................................... 0 0 0 0
Net investment income ................................................................. 0 0 0 0
Purchases ........................................................................... 0 3,111 0 0
Sales ............................................................................... 0 (1,462) 0 0
Issuances ........................................................................... 0 3 (506) (284)
Settlements .......................................................................... 0 (1,156) (1) 18
Foreign currency translation ............................................................. 0 0 1 0
Other(1) ............................................................................ 0 0 (30) 0
Transfers into Level 3(2) ............................................................... 0 864 0 0
Transfers out of Level 3(2) .............................................................. 0 (662) 0 0
Fair Value, end of period ................................................................... $9 $19,358 $(2,886) $(285)
Unrealized gains (losses) for the period relating to those Level 3 assets and liabilities that were still held at
the end of the period(3):
Included in earnings:
Realized investment gains (losses), net ............................................ $0 $ 0 $(2,566) $ (17)
Asset management fees and other income .......................................... $0 $ 0 $ 0 $ 0
Interest credited to policyholders’ account ............................................. $0 $ 1,823 $ 0 $ 0
(1) Other includes reclassifications of certain assets between reporting categories and assets acquired from the Star and Edison Businesses.
(2) Transfers into or out of Level 3 are generally reported as the value as of the beginning of the quarter in which the transfer occurs.
(3) Unrealized gains or losses related to assets still held at the end of the period do not include amortization or accretion of premiums and discounts.
(4) Separate account assets represent segregated funds that are invested for certain customers. Investment risks associated with market value changes are
borne by the customers, except to the extent of minimum guarantees made by the Company with respect to certain accounts. Separate account liabilities
are not included in the above table as they are reported at contract value and not fair value in the Company’s Consolidated Statement of Financial Position.
Prudential Financial, Inc. 2011 Annual Report 237