Prudential 2006 Annual Report Download - page 121

PRUDENTIAL FINANCIAL, INC.
Notes to Consolidated Financial Statements
4. INVESTMENTS (continued)
Equity Method Investments
Summarized combined financial information for significant joint ventures and limited partnership interests accounted for under
the equity method, including the Company’s investment in operating joint ventures that are discussed in more detail in Note 6, is as
follows:
At December 31,
2006 2005
(in millions)
STATEMENTS OF FINANCIAL POSITION
Investments in real estate ........................................................................... $ 6,993 $ 3,223
Investments in securities ........................................................................... 26,511 12,142
Cash and cash equivalents .......................................................................... 1,183 696
Receivables ..................................................................................... 10,533 10,487
Property and equipment ............................................................................ 280 265
Other assets(1) ................................................................................... 2,035 8,907
Total assets ..................................................................................... $47,535 $35,720
Borrowed funds-third party ......................................................................... $ 518 $ 1,498
Borrowed funds-Prudential ......................................................................... 489 475
Payables ........................................................................................ 9,058 7,878
Other liabilities(2) ................................................................................ 6,435 17,359
Total liabilities .................................................................................. 16,500 27,210
Partners’ capital ................................................................................ 31,035 8,510
Total liabilities and partners’ capital ............................................................... $47,535 $35,720
Equity in partners’ capital included above .............................................................. $ 3,510 $ 2,766
Equity in limited partnership interests not included above ................................................. 449 755
Carrying value .................................................................................. $ 3,959 $ 3,521
(1) Other assets consist of goodwill, intangible assets and other miscellaneous assets.
(2) Other liabilities consist of securities repurchase agreements and other miscellaneous liabilities.
Years ended December 31,
2006 2005 2004
(in millions)
STATEMENTS OF OPERATIONS
Income from real estate investments ......................................................... $ 333 $ 613 $ 409
Income from securities investments ......................................................... 5,593 5,510 2,875
Income from other ....................................................................... 55 17 —
Interest expense-third party ................................................................ (415) (242) (103)
Depreciation ........................................................................... (16) (9) (16)
Management fees/salary expense ........................................................... (2,263) (2,289) (1,203)
Other expenses .......................................................................... (1,894) (2,283) (1,449)
Net earnings .......................................................................... $1,393 $ 1,317 $ 513
Equity in net earnings included above ........................................................ $ 428 $ 418 $ 162
Equity in net earnings of limited partnership interests not included above ............................ 142 157 158
Total equity in net earnings .............................................................. $ 570 $ 575 $ 320
PRUDENTIAL FINANCIAL, INC. 2006 ANNUAL REPORT
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