Prudential 2012 Annual Report Download - page 141

PRUDENTIAL FINANCIAL, INC.
Notes to Consolidated Financial Statements
4. INVESTMENTS (continued)
Equity Method Investments
The following tables set forth summarized combined financial information for significant joint ventures and limited partnership
interests accounted for under the equity method, including the Company’s investments in operating joint ventures that are described in
more detail in Note 7. Changes between periods in the tables below reflect changes in the activities within the joint ventures and limited
partnerships, as well as changes in the Company’s level of investment in such entities.
At December 31,
2012 2011
(in millions)
STATEMENT OF FINANCIAL POSITION
Investments in real estate ........................................................................... $ 9,470 $ 7,119
Investments in securities ........................................................................... 26,204 15,723
Cash and cash equivalents .......................................................................... 1,585 705
Receivables ..................................................................................... 2,900 463
Property and equipment ............................................................................ 88 20
Other assets(1) ................................................................................... 1,171 980
Total assets ................................................................................. $41,418 $25,010
Borrowed funds-third party ......................................................................... $ 2,157 $ 2,413
Borrowed funds-Prudential ......................................................................... 116 64
Payables ........................................................................................ 614 319
Other liabilities(2) ................................................................................ 5,899 1,541
Total liabilities .............................................................................. 8,786 4,337
Partners’ capital ............................................................................. 32,632 20,673
Total liabilities and partners’ capital ............................................................ $41,418 $25,010
Total liabilities and partners’ capital included above ..................................................... $ 3,778 $ 3,308
Equity in limited partnership interests not included above ................................................. 453 200
Carrying value .............................................................................. $ 4,231 $ 3,508
(1) Other assets consist of goodwill, intangible assets and other miscellaneous assets.
(2) Other liabilities consist of securities repurchase agreements and other miscellaneous liabilities.
Years ended December 31,
2012 2011 2010
(in millions)
STATEMENTS OF OPERATIONS
Income from real estate investments ........................................................... $1,145 $ 885 $ 479
Income from securities investments ........................................................... 2,695 1,072 1,277
Income from other ......................................................................... 716 654 591
Interest expense ........................................................................... (131) (97) (117)
Depreciation ............................................................................. (7) (3) (8)
Management fees/salary expense ............................................................. (499) (161) (164)
Other expenses ........................................................................... (936) (664) (992)
Net earnings (losses) .................................................................. $2,983 $1,686 $1,066
Equity in net earnings (losses) included above ................................................... $ 188 $ 377 $ 161
Equity in net earnings (losses) of limited partnership interests not included above ....................... 34 40 61
Total equity in net earnings (losses) ...................................................... $ 222 $ 417 $ 222
Net Investment Income
Net investment income for the years ended December 31, was from the following sources:
2012 2011 2010
(in millions)
Fixed maturities, available-for-sale ......................................................... $ 9,800 $ 9,374 $ 8,346
Fixed maturities, held-to-maturity .......................................................... 135 140 150
Equity securities, available-for-sale ........................................................ 332 315 285
Trading account assets ................................................................... 890 889 822
Commercial mortgage and other loans ...................................................... 2,014 1,926 1,887
Policy loans ........................................................................... 597 598 577
Broker-dealer related receivables ..........................................................000
Short-term investments and cash equivalents ................................................. 46 58 45
Other long-term investments .............................................................. 320 231 152
Gross investment income ............................................................ 14,134 13,531 12,264
Less: investment expenses ................................................................ (473) (407) (399)
Net investment income .............................................................. $13,661 $13,124 $11,865
Prudential Financial, Inc. 2012 Annual Report 139