Prudential 2001 Annual Report Download - page 117

Prudential Financial, Inc.
Notes to Consolidated Financial Statements
6. Investments (continued)
Other Long-term Investments
The Company’s “Other long-term investments” include investments in joint ventures and limited partnerships of
$2,108 million and $2,391 million at December 31, 2001 and 2000, respectively. These investments include $959
million and $1,363 million in real estate related interests and $1,149 million and $1,028 million in non-real estate
related interests at December 31, 2001 and 2000, respectively. The Company’s share of net income from such
entities was $84 million, $187 million and $217 million for the years ended 2001, 2000 and 1999, respectively, and
is reported in “Net investment income.”
Summarized combined financial information for joint ventures and limited partnership interests accounted for under
the equity method, in which the Company has an investment of $10 million or greater and an equity interest of 10%
or greater, is as follows:
At December 31,
2001 2000
(In Millions)
STATEMENTS OF FINANCIAL POSITION
Investments in real estate ................................................................................ $3,603 $3,617
Investments in securities ................................................................................. 1,694 1,899
Cash and cash equivalents ............................................................................... 87 111
Other assets ........................................................................................... 208 173
Total assets ........................................................................................... $5,592 $5,800
Borrowed funds-third party ............................................................................... $ 598 $ 598
Borrowed funds-Prudential Financial ....................................................................... 3 —
Other liabilities ........................................................................................ 1,399 1,450
Total liabilities ........................................................................................ 2,000 2,048
Partners’ capital ...................................................................................... 3,592 3,752
Total liabilities and partners’ capital ..................................................................... $5,592 $5,800
Equity in partners’ capital included above ................................................................... $ 971 $1,030
Equity in limited partnership interests not included above ....................................................... 1,137 1,361
Carrying value ........................................................................................ $2,108 $2,391
For the years ended
December 31,
2001 2000 1999
(In Millions)
STATEMENTS OF OPERATIONS
Income of real estate joint ventures ................................................................... $246 $257 $102
Income of other limited partnership interests ............................................................ 142 256 530
Interest expense-third party ......................................................................... (31) (31) (7)
Other expenses ................................................................................... (251) (226) (121)
Net earnings .................................................................................... $106 $256 $504
Equity in net earnings included above ................................................................. $ 37 $ 79 $122
Equity in net earnings of limited partnership interests not included above ..................................... 47 108 95
Total equity in net earnings ....................................................................... $ 84 $187 $217
“Other long-term investments” also includes investments in the Company’s separate accounts of $975 million and
$1,077 million, investment real estate of $1,072 million and $239 million which is held through direct ownership
and other miscellaneous investments of $1,263 million and $752 million at December 31, 2001 and 2000,
respectively. Of the Company’s real estate, $146 million and $181 million consist of commercial and agricultural
assets held for disposal at December 31, 2001 and 2000, respectively. Impairment losses were $7 million, $0 million
and $3 million for the years ended December 31, 2001, 2000 and 1999, respectively, and are included in “Realized
investment gains (losses), net.”
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