Prudential 2012 Annual Report Download - page 223

PRUDENTIAL FINANCIAL, INC.
Notes to Consolidated Financial Statements
23. COMMITMENTS AND GUARANTEES, CONTINGENT LIABILITIES AND LITIGATION AND
REGULATORY MATTERS (continued)
Prudential Insurance Company of America, et al. v. Barclays Bank PLC, et al,, The Prudential Insurance Company of America, et al. v.
Goldman Sachs & Company, et al. and The Prudential Insurance Company of America, et al. v. RBS Financial Products, Inc., et al. upon
the same grounds and seeking the same damages, as articulated above. In November 2012, the Company filed a similar matter captioned
The Prudential Insurance Company of America v. Credit Suisse Securities (USA) LLC, et al. In December 2012, the Goldman Sachs matter
was removed to the United States District Court for the District of New Jersey. In December 2012, defendants filed a motion to dismiss the
complaint. In January 2013, the Morgan Stanley defendants filed a motion to dismiss the complaint.
Summary
The Company’s litigation and regulatory matters are subject to many uncertainties, and given their complexity and scope, their
outcome cannot be predicted. It is possible that the Company’s results of operations or cash flow in a particular quarterly or annual period
could be materially affected by an ultimate unfavorable resolution of pending litigation and regulatory matters depending, in part, upon the
results of operations or cash flow for such period. In light of the unpredictability of the Company’s litigation and regulatory matters, it is
also possible that in certain cases an ultimate unfavorable resolution of one or more pending litigation or regulatory matters could have a
material adverse effect on the Company’s financial position. Management believes, however, that, based on information currently known to
it, the ultimate outcome of all pending litigation and regulatory matters, after consideration of applicable reserves and rights to
indemnification, is not likely to have a material adverse effect on the Company’s financial position.
24. QUARTERLY RESULTS OF OPERATIONS (UNAUDITED)
The unaudited quarterly results of operations for the years ended December 31, 2012 and 2011 are summarized in the table below:
Three Months Ended
March 31 June 30 September 30 December 31
(in millions, except per share amounts)
2012
Total revenues ........................................................ $ 9,623 $16,136 $13,144 $45,912
Total benefits and expenses .............................................. 10,386 13,167 14,074 46,512
Income (loss) from continuing operations ................................... (935) 2,232 (557) (208)
Income (loss) from discontinued operations ................................. 7 7 (2) 3
Net income (loss) ...................................................... (928) 2,239 (559) (205)
Less: Income attributable to noncontrolling interests .......................... 11 15 25 27
Net income (loss) attributable to Prudential Financial, Inc. ..................... (939) 2,224 (584) (232)
Basic earnings per share—Common Stock(1):
Income (loss) from continuing operations attributable to Prudential Financial,
Inc. ........................................................... $ (2.04) $ 4.74 $ (1.34) $ (0.48)
Income from discontinued operations, net of taxes ........................ 0.01 0.01 0.00 0.00
Net income (loss) attributable to Prudential Financial, Inc. ................. $ (2.03) $ 4.75 $ (1.34) $ (0.48)
Diluted earnings per share—Common Stock(1):
Income (loss) from continuing operations attributable to Prudential Financial,
Inc. ........................................................... $ (2.04) $ 4.67 $ (1.34) $ (0.48)
Income from discontinued operations, net of taxes ........................ 0.01 0.02 0.00 0.00
Net income (loss) attributable to Prudential Financial, Inc. ................. $ (2.03) $ 4.69 $ (1.34) $ (0.48)
Basic and diluted earnings per share—Class B Stock(1):
Income (loss) from continuing operations attributable to Prudential Financial,
Inc. ........................................................... $ 6.50 $ (6.00) $ 20.00 $ (9.00)
Income (loss) from discontinued operations, net of taxes ................... 0.00 (0.50) 0.50 0.00
Net income (loss) attributable to Prudential Financial, Inc. ................. $ 6.50 $ (6.50) $ 20.50 $ (9.00)
2011
Total revenues ........................................................ $10,170 $12,244 $14,931 $11,685
Total benefits and expenses .............................................. 9,533 11,151 12,515 10,922
Income from continuing operations ........................................ 579 808 1,618 598
Income (loss) from discontinued operations ................................. 14 16 (9) 14
Net income .......................................................... 593 824 1,609 612
Less: Income attributable to noncontrolling interests .......................... 25 29 10 8
Net income attributable to Prudential Financial, Inc. .......................... 568 795 1,599 604
Basic earnings per share—Common Stock(1):
Income from continuing operations attributable to Prudential Financial, Inc. . . . $ 1.10 $ 1.58 $ 3.25 $ 1.06
Income (loss) from discontinued operations, net of taxes ................... 0.03 0.03 (0.02) 0.03
Net income attributable to Prudential Financial, Inc. ...................... $ 1.13 $ 1.61 $ 3.23 $ 1.09
Diluted earnings per share—Common Stock(1):
Income from continuing operations attributable to Prudential Financial, Inc. . . . $ 1.09 $ 1.56 $ 3.20 $ 1.05
Income (loss) from discontinued operations, net of taxes ................... 0.03 0.03 (0.02) 0.03
Net income attributable to Prudential Financial, Inc. ...................... $ 1.12 $ 1.59 $ 3.18 $ 1.08
Basic and diluted earnings per share—Class B Stock(1):
Income from continuing operations attributable to Prudential Financial, Inc. . . . $ 6.50 $ 1.00 $ 12.00 $ 41.50
Income (loss) from discontinued operations, net of taxes ................... 0.00 0.00 0.00 0.00
Net income attributable to Prudential Financial, Inc. ...................... $ 6.50 $ 1.00 $ 12.00 $ 41.50
Prudential Financial, Inc. 2012 Annual Report 221