Prudential 2007 Annual Report Download - page 13

SELECTED FINANCIAL DATA
We derived the selected consolidated income statement data for the years ended December 31, 2007, 2006 and 2005 and the selected
consolidated balance sheet data as of December 31, 2007 and 2006 from our Consolidated Financial Statements included elsewhere herein.
We derived the selected consolidated income statement data for the years ended December 31, 2004 and 2003 and the selected consolidated
balance sheet data as of December 31, 2005, 2004 and 2003 from consolidated financial statements not included herein.
On June 1, 2006, we acquired the variable annuity business of The Allstate Corporation through a reinsurance transaction. Results
presented below include the results of this business from the date of acquisition.
The 2005 income tax provision includes a benefit of $720 million from reduction of tax liabilities in connection with the Internal
Revenue Service examination of our tax returns for the years 1997 through 2001.
On April 1, 2004, we acquired the retirement business of CIGNA Corporation. Results presented below include the results of this
business from the date of acquisition.
On July 1, 2003, we completed an agreement with Wachovia Corporation, or Wachovia, to combine each company’s respective retail
securities brokerage and clearing operations forming a joint venture, Wachovia Securities. As of December 31, 2007, we had a 38%
ownership interest in the joint venture, with Wachovia owning the remaining 62%. The transaction included our securities brokerage
operations but did not include our equity sales, trading and research operations. As part of the transaction we retained certain assets and
liabilities related to the contributed businesses, including liabilities for certain litigation and regulatory matters. We account for our
ownership of the joint venture under the equity method of accounting. Prior to the formation of the joint venture on July 1, 2003, the results
of our previously wholly owned securities brokerage operations were included on a fully consolidated basis.
On May 1, 2003, we acquired Skandia U.S. Inc., which included American Skandia, Inc. Results presented below include the results
of American Skandia from the date of acquisition.
In the fourth quarter of 2003, we completed the sale of our property and casualty insurance companies. Results for 2003 include a
pre-tax loss of $491 million related to the disposition of these businesses. Results for 2003 also include a gain of $332 million from the
settlement of an arbitration award related to the capital markets activities of Prudential Securities that were terminated in 2000.
Our Gibraltar Life operations use a November 30 fiscal year end. Consolidated balance sheet data as of December 31, 2007, 2006,
2005, 2004 and 2003 includes Gibraltar Life assets and liabilities as of November 30. Consolidated income statement data for 2007, 2006,
2005, 2004 and 2003 includes Gibraltar Life results for the twelve months ended November 30, 2007, 2006, 2005, 2004 and 2003,
respectively.
Prudential Financial 2007 Annual Report 11