Prudential 2012 Annual Report Download - page 177

PRUDENTIAL FINANCIAL, INC.
Notes to Consolidated Financial Statements
18. EMPLOYEE BENEFIT PLANS (continued)
As of December 31, 2011
Level 1 Level 2 Level 3 Total
(in millions)
U.S. Equities:
Pooled separate accounts(1) ................................................................ $ 0 $ 900 $ 0 $ 900
Common/collective trusts(1) ............................................................... 0 54 0 54
Subtotal ........................................................................ 954
International Equities:
Pooled separate accounts(2) ................................................................ 0 33 0 33
Common/collective trusts(3) ............................................................... 0 186 0 186
United Kingdom insurance pooled funds(4) ................................................... 0 68 0 68
Subtotal ........................................................................ 287
Fixed Maturities:
Pooled separate accounts(5) ................................................................ 0 1,006 20 1,026
Common/collective trusts(6) ............................................................... 0 358 0 358
U.S. government securities (federal):
Mortgage-backed .................................................................... 0 4 0 4
Other U.S. government securities ........................................................ 0 2,031 0 2,031
U.S. government securities (state & other) .................................................... 0 653 0 653
Non-U.S. government securities ............................................................ 0 25 0 25
United Kingdom insurance pooled funds(7) ................................................... 0 176 0 176
Corporate Debt:
Corporate bonds(8) ................................................................... 0 3,712 12 3,724
Asset-backed ....................................................................... 0 17 0 17
Collateralized Mortgage Obligations (CMO)(9) ............................................ 0 639 0 639
Interest rate swaps (Notional amount: $559) ................................................... 0 (21) 0 (21)
Guaranteed investment contract ............................................................. 0 18 0 18
Other(10) .............................................................................. 46 2 62 110
Unrealized gain (loss) on investment of securities lending collateral(13) ............................. 0 (141) 0 (141)
Subtotal ........................................................................ 8,619
Short-term Investments:
Pooled separate accounts .................................................................. 0 293 0 293
United Kingdom insurance pooled funds ...................................................... 0 6 0 6
Subtotal ........................................................................ 299
Real Estate:
Pooled separate accounts(12) ............................................................... 0 0 318 318
Partnerships ............................................................................ 0 0 105 105
Subtotal ........................................................................ 423
Other:
Partnerships ............................................................................ 0 0 552 552
Hedge funds ............................................................................ 0 0 678 678
Subtotal ........................................................................ 1,230
Total ...................................................................... $46 $10,019 $1,747 $11,812
(1) These categories invest in U.S. equity funds whose objective is to track or out perform various indexes.
(2) This category invests in a large cap international equity funds whose objective is to track an index.
(3) This category invests in international equity funds, primarily large cap, whose objective is to out perform various indexes.
(4) This category invests in an international equity fund whose objective is to track an index.
(5) This category invests in bond funds, primarily highly rated private placement securities.
(6) This category invests in bond funds, primarily highly rated public securities whose objective is to outperform an index.
(7) This category invests in bond funds, primarily highly rated corporate securities.
(8) This category invests in highly rated corporate securities.
(9) This category invests in highly rated Collateralized Mortgage Obligations.
(10) Primarily cash and cash equivalents, short term investments, payables and receivables, and open future contract positions (including fixed income
collateral).
(11) The contractual net value of the investment of securities lending collateral invested in primarily short-term bond funds is $682 million and the liability
for securities lending collateral is $726 million.
(12) This category invests in commercial real estate and real estate securities funds, whose objective is to outperform an index
(13) The contractual net value of the investment of securities lending collateral invested in primarily short-term bond funds is $1,289 million and the liability
for securities lending collateral is $1,430 million.
Prudential Financial, Inc. 2012 Annual Report 175