Prudential 2003 Annual Report Download - page 98

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PRUDENTIAL FINANCIAL, INC.
Consolidated Statements of Operations
Years Ended December 31, 2003, 2002 and 2001 (in millions, except per share amounts)
2003 2002 2001
REVENUES
Premiums .................................................................................... $13,233 $ 13,053 $11,904
Policy charges and fee income ................................................................... 2,001 1,780 2,027
Net investment income ......................................................................... 8,681 8,819 9,087
Realized investment gains (losses), net ............................................................. 270 (1,365) (674)
Commissions and other income ................................................................... 3,722 4,016 4,334
Total revenues ............................................................................ 27,907 26,303 26,678
BENEFITS AND EXPENSES
Policyholders’ benefits ......................................................................... 13,424 13,378 12,457
Interest credited to policyholders’ account balances ................................................... 1,830 1,846 1,804
Dividends to policyholders ...................................................................... 2,602 2,644 2,722
General and administrative expenses ............................................................... 7,602 8,355 9,228
Demutualization costs and expenses ............................................................... — — 588
Loss on disposition of property and casualty insurance operations ........................................ 491 — —
Total benefits and expenses .................................................................. 25,949 26,223 26,799
INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES ................. 1,958 80 (121)
Income taxes:
Current .................................................................................. 162 (91) (902)
Deferred ................................................................................. 488 (98) 870
Total income tax expense (benefit) ........................................................ 650 (189) (32)
INCOME (LOSS) FROM CONTINUING OPERATIONS .......................................... 1,308 269 (89)
DISCONTINUED OPERATIONS
Loss from discontinued operations, net of taxes ...................................................... (44) (75) (65)
NET INCOME (LOSS) ........................................................................ $ 1,264 $ 194 $ (154)
EARNINGS PER SHARE (See Note 13)
Financial Services Businesses(a)
Basic:
Income from continuing operations per share of Common Stock ..................................... $ 2.07 $ 1.38 $ 0.07
Discontinued operations .................................................................... (0.08) (0.13) —
Net income per share of Common Stock ........................................................ $ 1.99 $ 1.25 $ 0.07
Diluted:
Income from continuing operations per share of Common Stock ..................................... $ 2.06 $ 1.38 $ 0.07
Discontinued operations .................................................................... (0.08) (0.13) —
Netincomeper shareofCommonStock ........................................................ $ 1.98 $ 1.25 $ 0.07
Dividends declared per share of Common Stock ................................................. $ 0.50 $ 0.40 $ —
Closed Block Business(a)
Netincome(loss) pershare of ClassBStock—basicand diluted ..................................... $ 89.50 $(264.00) $ 1.50
Dividends declared per share of Class B Stock ................................................... $ 9.63 $ 9.63 —
(a) Earnings per share amounts for 2001 are for the period December 18, 2001 through December 31, 2001.
See Notes to Consolidated Financial Statements
Growing and Protecting Your Wealth96