Prudential 2001 Annual Report Download - page 118

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Prudential Financial, Inc.
Notes to Consolidated Financial Statements
6. Investments (continued)
Net Investment Income
Net investment income for the years ended December 31, was from the following sources:
2001 2000 1999
(In Millions)
Fixed maturities available for sale .............................................................. $ 6,826 $ 5,938 $ 5,602
Fixed maturities held to maturity ............................................................... 12 1,028 1,217
Trading account assets ....................................................................... 294 734 622
Equity securities available for sale .............................................................. 45 67 63
Commercial loans ........................................................................... 1,432 1,370 1,401
Policy loans ................................................................................ 522 478 448
Securities purchased under agreements to resell .................................................... 11 28 25
Broker-dealer related receivables ............................................................... 513 1,222 976
Short-term investments and cash equivalents ...................................................... 465 683 490
Other investment income ..................................................................... 419 479 455
Gross investment income ..................................................................... 10,539 12,027 11,299
Less investment expenses ..................................................................... (1,388) (2,530) (1,881)
Subtotal ............................................................................... 9,151 9,497 9,418
Less amount relating to discontinued operations ................................................... — — (51)
Net investment income ....................................................................... $ 9,151 $ 9,497 $ 9,367
Based on the carrying value, assets categorized as “non-income producing” at December 31, 2001 included in fixed
maturities, equity securities, commercial loans and other long-term investments totaled $47 million, $6 million, $19
million and $33 million, respectively.
Realized Investment Gains (Losses), Net
Realized investment gains (losses), net, for the years ended December 31, were from the following sources:
2001 2000 1999
(In Millions)
Fixed maturities ................................................................................. $(639) $(1,066) $(557)
Equity securities available for sale .................................................................. (245) 450 223
Commercial loans ............................................................................... 1 (5) 209
Investment real estate ............................................................................ 40 49 106
Joint ventures and limited partnerships ............................................................... — 124 656
Derivatives .................................................................................... 126 165 305
Other ......................................................................................... 12 (5) (27)
Subtotal ................................................................................... (705) (288) 915
Less amount related to discontinued operations ........................................................ — — 9
Realized investment gains (losses), net ............................................................... $(705) $ (288) $ 924
The “joint ventures and limited partnerships” category includes net realized investment gains relating to real estate
joint ventures’ and partnerships’ sales of their underlying invested assets, as described more fully in Note 2,
“Investments,” amounting to $0 million, $91 million and $114 million for the years ended 2001, 2000 and 1999,
respectively.
Net Unrealized Investment Gains (Losses)
Net unrealized investment gains and losses on securities available for sale and certain other long-term investments
are included in the Consolidated Statements of Financial Position as a component of “Accumulated other
comprehensive income (loss).” Changes in these amounts include reclassification adjustments to exclude from
“Other comprehensive income (loss)” those items that are included as part of “Net income” for a period that had
been part of “Other comprehensive income (loss)” in earlier periods. The amounts for the years ended December 31,
are as follows:
Growing and Protecting Your Wealth116