Prudential 2012 Annual Report Download - page 112

PRUDENTIAL FINANCIAL, INC.
Consolidated Statements of Cash Flows
Years Ended December 31, 2012, 2011 and 2010 (in millions)
2012 2011 2010
CASH FLOWS FROM OPERATING ACTIVITIES
Net income ......................................................................................... $ 547 $ 3,638 $ 3,012
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Realized investment (gains) losses, net ............................................................... 1,441 (2,831) (1,050)
Policy charges and fee income ...................................................................... (1,412) (1,147) (978)
Interest credited to policyholders’ account balances ..................................................... 4,234 4,484 4,209
Depreciation and amortization ...................................................................... 302 290 (104)
(Gains) losses on trading account assets supporting insurance liabilities, net .................................. (613) (235) (501)
Change in:
Deferred policy acquisition costs ................................................................ (2,061) (376) (1,376)
Future policy benefits and other insurance liabilities ................................................ 17,784 6,799 4,497
Other trading account assets ................................................................... (33) 329 (644)
Income taxes ............................................................................... 527 (83) (1,133)
Other, net .................................................................................. 193 1,509 610
Cash flows from operating activities ....................................................... 20,909 12,377 6,542
CASH FLOWS FROM INVESTING ACTIVITIES
Proceeds from the sale/maturity/prepayment of:
Fixed maturities, available-for-sale .................................................................. 38,678 42,548 28,561
Fixed maturities, held-to-maturity ................................................................... 528 455 470
Trading account assets supporting insurance liabilities and other trading account assets ......................... 15,347 22,388 39,150
Equity securities, available-for-sale .................................................................. 4,202 3,742 2,485
Commercial mortgage and other loans ............................................................... 5,327 4,814 4,379
Policy loans .................................................................................... 2,241 2,035 1,714
Other long-term investments ....................................................................... 1,474 2,120 1,071
Short-term investments ........................................................................... 28,123 27,098 20,896
Payments for the purchase/origination of:
Fixed maturities, available-for-sale .................................................................. (52,212) (52,045) (38,213)
Fixed maturities, held-to-maturity ................................................................... (18) (76) (199)
Trading account assets supporting insurance liabilities and other trading account assets ......................... (16,115) (23,684) (39,744)
Equity securities, available-for-sale .................................................................. (4,001) (3,080) (2,461)
Commercial mortgage and other loans ............................................................... (7,066) (6,829) (4,760)
Policy loans .................................................................................... (2,012) (1,815) (1,547)
Other long-term investments ....................................................................... (1,736) (1,865) (824)
Short-term investments ........................................................................... (28,323) (26,962) (19,922)
Acquisitions, net of cash acquired. ...................................................................... 0 (2,321) 0
Other, net .......................................................................................... 143 182 422
Cash flows used in investing activities .......................................................... (15,420) (13,295) (8,522)
CASH FLOWS FROM FINANCING ACTIVITIES
Policyholders’ account deposits ......................................................................... 22,822 24,336 22,271
Policyholders’ account withdrawals ..................................................................... (24,014) (22,564) (22,176)
Net change in securities sold under agreements to repurchase and cash collateral for loaned securities ................. 584 1,126 (863)
Proceeds from the issuance of Common Stock ............................................................. 0 0 970
Cash dividends paid on Common Stock .................................................................. (749) (685) (556)
Cash dividends paid on Class B Stock .................................................................... (19) (19) (19)
Net change in financing arrangements (maturities 90 days or less) ............................................. (583) 104 684
Common Stock acquired .............................................................................. (650) (999) 0
Common Stock reissued for exercise of stock options ....................................................... 150 122 98
Proceeds from the issuance of debt (maturities longer than 90 days) ............................................ 4,662 2,266 4,561
Repayments of debt (maturities longer than 90 days) ........................................................ (3,391) (1,739) (3,738)
Excess tax benefits from share-based payment arrangements .................................................. 51 20 12
Change in bank deposits .............................................................................. (1,730) (22) 230
Other, net .......................................................................................... 1,562 153 139
Cash flows from (used in) financing activities ................................................... (1,305) 2,099 1,613
Effect of foreign exchange rate changes on cash balances .................................................... (335) 155 118
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS .................................... 3,849 1,336 (249)
CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR ............................................ 14,251 12,915 13,164
CASH AND CASH EQUIVALENTS, END OF YEAR .................................................... $18,100 $ 14,251 $ 12,915
SUPPLEMENTAL CASH FLOW INFORMATION
Income taxes paid ................................................................................... $ 501 $ 809 $ 893
Interest paid ........................................................................................ $ 1,349 $ 1,285 $ 1,197
NON-CASH TRANSACTIONS DURING THE YEAR
Treasury Stock shares issued for stock-based compensation programs .......................................... $ 211 $ 77 $ 74
Federal Home Loan Bank of New York debt reissued as funding agreements and reported as policyholder account
balances ......................................................................................... $ 445 $ 0 $ 0
Assets received and related liabilities recorded from two significant Pension Risk Transfer transactions ............... $33,423 $ 0 $ 0
See Notes to Consolidated Financial Statements
110 Prudential Financial, Inc. 2012 Annual Report