Prudential 2006 Annual Report Download - page 183

PRUDENTIAL FINANCIAL, INC.
Notes to Consolidated Financial Statements
22. QUARTERLY RESULTS OF OPERATIONS (UNAUDITED)
The unaudited quarterly results of operations for the years ended December 31, 2006 and 2005 are summarized in the table
below:
Three months ended
March 31 June 30 September 30 December 31
(in millions, except per share amounts)
2006
Total revenues ........................................................ $7,850 $7,373 $8,408 $ 8,857
Total benefits and expenses .............................................. 6,883 6,780 6,938 7,484
Income from continuing operations before income taxes and equity in earnings of
operating joint ventures ............................................... 967 593 1,470 1,373
Income from continuing operations ........................................ 739 469 1,137 1,018
Net income .......................................................... 733 453 1,205 1,037
Basic income from continuing operations per share—Common Stock(1) .......... 1.42 0.93 2.29 1.88
Diluted income from continuing operations per share—Common Stock(1) ......... 1.39 0.92 2.24 1.85
Basic net income per share—Common Stock(1) ............................. 1.40 0.90 2.43 1.92
Diluted net income per share—Common Stock(1) ............................ 1.38 0.89 2.38 1.88
Basic and diluted net income per share—Class B Stock ........................ 19.50 6.50 18.50 63.50
2005
Total revenues ........................................................ $7,692 $8,308 $7,738 $ 7,861
Total benefits and expenses .............................................. 6,419 7,032 6,686 7,174
Income from continuing operations before income taxes and equity in earnings of
operating joint ventures ............................................... 1,273 1,276 1,052 687
Income from continuing operations ........................................ 928 922 1,379 393
Net income .......................................................... 929 883 1,364 364
Basic income from continuing operations per share—Common Stock(1) .......... 1.51 1.58 2.66 0.85
Diluted income from continuing operations per share—Common Stock(1) ......... 1.49 1.55 2.62 0.83
Basic net income per share—Common Stock(1) ............................. 1.51 1.50 2.63 0.79
Diluted net income per share—Common Stock(1) ............................ 1.49 1.48 2.59 0.78
Basic and diluted net income (loss) per share—Class B Stock ................... 70.50 53.50 11.50 (16.00)
(1) Quarterly earnings per share amounts may not add to the full year amounts due to the averaging of shares.
Results for the first quarter of 2006 include pre-tax expenses of $176 million related to obligations and costs retained in
connection with businesses contributed to the retail securities brokerage joint venture with Wachovia, including an increase in the
reserve for estimated settlement costs related to market timing issues involving Prudential Equity Group, LLC’s former Prudential
Securities operations, with respect to which the Company announced that Prudential Equity Group, LLC had reached a settlement in
August 2006.
Results for the second and fourth quarters of 2005 include pre-tax expenses of $136 million and $267 million, respectively,
related to obligations and costs retained in connection with businesses contributed to the retail securities brokerage joint venture
with Wachovia, including accruals for estimated settlement costs related to the market timing issues described above. Results for
the third quarter of 2005 include an income tax benefit of $720 million, as discussed further in Note 17.
PRUDENTIAL FINANCIAL, INC. 2006 ANNUAL REPORT
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