Prudential 2005 Annual Report Download - page 113

Download and view the complete annual report

Please find page 113 of the 2005 Prudential annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 172

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143
  • 144
  • 145
  • 146
  • 147
  • 148
  • 149
  • 150
  • 151
  • 152
  • 153
  • 154
  • 155
  • 156
  • 157
  • 158
  • 159
  • 160
  • 161
  • 162
  • 163
  • 164
  • 165
  • 166
  • 167
  • 168
  • 169
  • 170
  • 171
  • 172

PRUDENTIAL FINANCIAL, INC.
Notes to Consolidated Financial Statements
4. INVESTMENTS (continued)
million of gross unrealized losses of twelve months or more were concentrated in the manufacturing, mortgage backed securities
and foreign government sectors. At December 31, 2004, the $301 million of gross unrealized losses of twelve months or more were
concentrated in the retail, finance and manufacturing sectors. In accordance with its policy described in Note 2, the Company
concluded that an adjustment for other than temporary impairments for these securities was not warranted at December 31, 2005 or
2004.
Duration of Gross Unrealized Loss Positions for Equity Securities
The following table shows the fair value and gross unrealized losses aggregated by length of time that individual equity
securities have been in a continuous unrealized loss position, at December 31:
2005
Less than twelve months Twelve months or more Total
Fair Value
Unrealized
Losses Fair Value
Unrealized
Losses Fair Value
Unrealized
Losses
(in millions)
Equity securities, available for sale ............. $1,250 $114 $111 $20 $1,361 $134
2004
Less than twelve months Twelve months or more Total
Fair Value
Unrealized
Losses Fair Value
Unrealized
Losses Fair Value
Unrealized
Losses
(in millions)
Equity securities, available for sale ............. $735 $66 $66 $16 $801 $82
At December 31, 2005, $18 million of the gross unrealized losses represented declines of greater than 20%, all of which had
been in that position for less than six months. At December 31, 2004, $18 million of the gross unrealized losses represented declines
of greater than 20%, substantially all of which had been in that position for less than six months. In accordance with its policy
described in Note 2, the Company concluded that an adjustment for other than temporary impairments for these securities was not
warranted at December 31, 2005 or 2004.
Duration of Gross Unrealized Loss Positions for Cost Method Investments
The following table shows the fair value and gross unrealized losses aggregated by length of time that individual cost method
investments have been in a continuous unrealized loss position, at December 31:
2005
Less than twelve months Twelve months or more Total
Fair Value
Unrealized
Losses Fair Value
Unrealized
Losses Fair Value
Unrealized
Losses
(in millions)
Cost Method Investments ................ $40 $ 4 $13 $2 $53 $6
2004
Less than twelve months Twelve months or more Total
Fair Value
Unrealized
Losses Fair Value
Unrealized
Losses Fair Value
Unrealized
Losses
(in millions)
Cost Method Investments ................ $ 2 $— $10 $2 $12 $2
The aggregate cost of the Company’s cost method investments included in “Other long-term investments” totaled $148 million
and $90 million at December 31, 2005 and 2004, respectively. In accordance with its policy described in Note 2, the Company
concluded that an adjustment for other than temporary impairments for these securities was not warranted at December 31, 2005 or
2004.
Prudential Financial 2005 Annual Report 111