Prudential 2006 Annual Report Download - page 14

Year Ended December 31,
2006 2005 2004 2003 2002
(in millions, except per share and ratio information)
Income Statement Data:
Revenues:
Premiums .............................................................. $ 13,908 $ 13,756 $ 12,521 $ 13,163 $ 12,914
Policy charges and fee income .............................................. 2,653 2,520 2,342 1,978 1,815
Net investment income .................................................... 11,354 10,597 9,455 8,651 8,782
Realized investment gains (losses), net ........................................ 774 1,378 778 375 (1,290)
Asset management fees and other income ..................................... 3,799 3,348 3,000 3,418 3,850
Total revenues ......................................................... 32,488 31,599 28,096 27,585 26,071
Benefits and expenses: ........................................................
Policyholders’ benefits .................................................... 14,283 13,883 12,863 13,301 13,250
Interest credited to policyholders’ account balances ............................. 2,917 2,699 2,359 1,857 1,869
Dividends to policyholders ................................................. 2,622 2,850 2,481 2,599 2,641
General and administrative expenses ......................................... 8,263 7,879 7,108 7,443 8,229
Loss on disposition of property and casualty insurance operations .................. — — — 491 —
Total benefits and expenses .............................................. 28,085 27,311 24,811 25,691 25,989
Income from continuing operations before income taxes, equity in earnings of operating joint
ventures, extraordinary gain on acquisition and cumulative effect of accounting change . . . 4,403 4,288 3,285 1,894 82
Income tax expense (benefit) ................................................... 1,248 808 938 627 (186)
Income from continuing operations before equity in earnings of operating joint ventures,
extraordinary gain on acquisition and cumulative effect of accounting change ........... 3,155 3,480 2,347 1,267 268
Equity in earnings of operating joint ventures, net of taxes ............................ 208 142 55 45 5
Income from continuing operations before extraordinary gain on acquisition and cumulative
effect of accounting change(3) ................................................ 3,363 3,622 2,402 1,312 273
Income (loss) from discontinued operations, net of taxes .............................. 65 (82) (88) (48) (79)
Extraordinary gain on acquisition, net of taxes ...................................... — — 21 — —
Cumulative effect of accounting change, net of taxes ................................ — — (79) — —
Net income ................................................................. $ 3,428 $ 3,540 $ 2,256 $ 1,264 $ 194
Basic income from continuing operations before extraordinary gain on acquisition and
cumulative effect of accounting change per share—Common Stock ................... $ 6.50 $ 6.61 $ 3.66 $ 2.08 $ 1.39
Diluted income from continuing operations before extraordinary gain on acquisition and
cumulative effect of accounting change per share—Common Stock ................... $ 6.37 $ 6.49 $ 3.58 $ 2.07 $ 1.39
Basic net income per share—Common Stock ....................................... $ 6.63 $ 6.45 $ 3.38 $ 1.99 $ 1.25
Diluted net income per share—Common Stock ..................................... $ 6.50 $ 6.34 $ 3.31 $ 1.98 $ 1.25
Basic and diluted net income (loss) per share—Class B Stock ......................... $ 108.00 $ 119.50 $ 249.00 $ 89.50 $ (264.00)
Dividends declared per share—Common Stock ..................................... $ 0.95 $ 0.78 $ 0.625 $ 0.50 $ 0.40
Dividends declared per share—Class B Stock ...................................... $ 9.625 $ 9.625 $ 9.625 $ 9.625 $ 9.625
Ratio of earnings to fixed charges(1) ............................................. 2.12 2.19 2.11 1.79 1.05
As of December 31,
2006 2005 2004 2003 2002
(in millions)
Balance Sheet Data:
Total investments excluding policy loans .......................................... $226,530 $213,031 $209,383 $174,042 $174,895
Separate account assets ........................................................ 177,463 153,159 115,568 106,680 70,555
Total assets ................................................................. 454,266 413,374 400,828 321,274 292,579
Future policy benefits and policyholders’ account balances ........................... 187,603 177,531 179,337 146,223 140,168
Separate account liabilities ..................................................... 177,463 153,159 115,568 106,680 70,555
Short-term debt .............................................................. 12,536 11,114 4,044 4,739 3,469
Long-term debt .............................................................. 11,423 8,270 7,627 5,610 4,757
Total liabilities .............................................................. 431,374 390,611 378,484 299,982 270,559
Guaranteed beneficial interest in Trust holding solely debentures of Parent(2) ............. — — — — 690
Stockholders’ equity(4) ........................................................ $ 22,892 $ 22,763 $ 22,344 $ 21,292 $ 21,330
(1) For purposes of this computation, earnings are defined as income from continuing operations before income taxes, extraordinary gain on acquisition and
cumulative effect of accounting change excluding undistributed income from equity method investments, fixed charges and interest capitalized. Fixed
charges are the sum of gross interest expense, interest credited to policyholders’ account balances and an estimated interest component of rent expense.
(2) Effective December 31, 2003, the Company adopted the revised guidance under FIN No. 46. As a result, the Trust was deconsolidated and the
Prudential Financial debentures are reported as “Long-term debt.”
PRUDENTIAL FINANCIAL, INC. 2006 ANNUAL REPORT
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