Prudential 2015 Annual Report Download - page 81

Equity Securities
Investment Mix
The equity securities attributable to PFI excluding the Closed Block division consist principally of investments in common and
preferred stock of publicly-traded companies, as well as mutual fund shares. The following table sets forth the composition of our equity
securities portfolio and the associated gross unrealized gains (losses) as of the dates indicated.
December 31, 2015 December 31, 2014
Cost
Gross
Unrealized
Gains
Gross
Unrealized
Losses
Fair
Value Cost
Gross
Unrealized
Gains
Gross
Unrealized
Losses
Fair
Value
(in millions)
Non-redeemable preferred stocks ............... $ 21 $ 1 $ 1 $ 21 $ 23 $ 3 $ 1 $ 25
Mutual fund common stocks(1) ................ 2,918 333 76 3,175 2,638 468 30 3,076
Other common stocks ........................ 2,033 1,339 31 3,341 2,064 1,190 24 3,230
Total equity securities(2) ................. $4,972 $1,673 $108 $6,537 $4,725 $1,661 $55 $6,331
(1) Includes mutual fund shares representing our interest in the underlying assets of certain of our separate account investments supporting corporate-owned
life insurance. These mutual funds invest primarily in high yield bonds.
(2) Amounts presented exclude investments in private equity and hedge funds and other investments which are reported in “Other long-term investments.”
OTTI of Equity Securities
For those equity securities classified as available-for-sale, we record unrealized gains (losses) to the extent cost is different from
estimated fair value. All securities with unrealized losses are subject to our review to identify OTTI in value. For additional information
regarding our policies regarding OTTI for equity securities, see Note 2 to the Consolidated Financial Statements.
OTTI of equity securities attributable to PFI excluding the Closed Block division were $111 million and $26 million for the years
ended December 31, 2015 and 2014, respectively. For a further discussion of OTTI, see “—Realized Investment Gains (Losses)” above.
Other Long-Term Investments
The following table sets forth the composition of “Other long-term investments,” which primarily consists of investments in joint
ventures and limited partnerships, other than operating joint ventures, as well as wholly-owned investment real estate and other investments
attributable to PFI excluding the Closed Block division, as of the dates indicated.
December 31,
2015
December 31,
2014
(in millions)
Joint ventures and limited partnerships:
Non-real estate-related(1) ......................................................................... $4,087 $4,267
Real estate-related .............................................................................. 285 235
Real estate held through direct ownership ................................................................ 1,456 1,795
Other(2) .......................................................................................... 721 872
Total other long-term investments .................................................................. $6,549 $7,169
(1) Primarily includes investments in private equity and hedge funds.
(2) Primarily includes derivatives and member and activity-based stock held in the Federal Home Loan Banks of New York and Boston. For additional
information regarding our holdings in the Federal Home Loan Banks of New York and Boston, see Note 14 to the Consolidated Financial Statements.
OTTI of Other Long-Term Investments
For joint ventures and limited partnerships, the carrying value of these investments is written down, or impaired to fair value when a
decline in value is considered to be other-than-temporary.
OTTI on joint ventures and limited partnerships attributable to PFI excluding the Closed Block division were $121 million and $21
million for the years ended December 31, 2015 and 2014. For a further discussion of OTTI, see “—Realized Investment Gains (Losses)”
above.
For additional information regarding our policies regarding OTTI for joint ventures and limited partnerships, other than operating joint
ventures, as well as wholly-owned investment real estate and other investments, see Note 2 to the Company’s Consolidated Financial
Statements.
Prudential Financial, Inc. 2015 Annual Report 79