Prudential 2007 Annual Report Download - page 14

This selected consolidated financial information should be read in conjunction with “Management’s Discussion and Analysis of
Financial Condition and Results of Operations” and the Consolidated Financial Statements included elsewhere herein.
Year Ended December 31,
2007 2006 2005 2004 2003
(in millions, except per share and ratio information)
Income Statement Data:
Revenues:
Premiums .............................................................. $ 14,351 $ 13,908 $ 13,756 $ 12,521 $ 13,163
Policy charges and fee income .............................................. 3,131 2,653 2,520 2,342 1,978
Net investment income .................................................... 12,017 11,320 10,595 9,454 8,651
Realized investment gains (losses), net ........................................ 613 774 1,378 778 375
Asset management fees and other income ..................................... 4,289 3,613 3,098 2,718 3,131
Total revenues ....................................................... 34,401 32,268 31,347 27,813 27,298
Benefits and expenses:
Policyholders’ benefits .................................................... 14,749 14,283 13,883 12,863 13,301
Interest credited to policyholders’ account balances ............................. 3,222 2,917 2,699 2,359 1,857
Dividends to policyholders ................................................. 2,903 2,622 2,850 2,481 2,599
General and administrative expenses ......................................... 8,841 8,052 7,641 6,844 7,173
Loss on disposition of property and casualty insurance operations .................. — — — — 491
Total benefits and expenses ............................................ 29,715 27,874 27,073 24,547 25,421
Income from continuing operations before income taxes, equity in earnings of operating joint
ventures, extraordinary gain on acquisition and cumulative effect of accounting change . . . 4,686 4,394 4,274 3,266 1,877
Income tax expense ........................................................... 1,245 1,245 803 931 621
Income from continuing operations before equity in earnings of operating joint ventures,
extraordinary gain on acquisition and cumulative effect of accounting change ........... 3,441 3,149 3,471 2,335 1,256
Equity in earnings of operating joint ventures, net of taxes ............................ 246 208 142 55 45
Income from continuing operations before extraordinary gain on acquisition and cumulative
effect of accounting change .................................................. 3,687 3,357 3,613 2,390 1,301
Income (loss) from discontinued operations, net of taxes .............................. 17 71 (73) (76) (37)
Extraordinary gain on acquisition, net of taxes ...................................... — — — 21 —
Cumulative effect of accounting change, net of taxes ................................ — — — (79) —
Net income ................................................................. $ 3,704 $ 3,428 $ 3,540 $ 2,256 $ 1,264
Basic income from continuing operations before extraordinary gain on acquisition and
cumulative effect of accounting change per share—Common Stock ................... $ 7.72 $ 6.49 $ 6.59 $ 3.63 $ 2.06
Diluted income from continuing operations before extraordinary gain on acquisition and
cumulative effect of accounting change per share—Common Stock ................... $ 7.58 $ 6.36 $ 6.48 $ 3.56 $ 2.05
Basic net income per share—Common Stock ....................................... $ 7.75 $ 6.63 $ 6.45 $ 3.38 $ 1.99
Diluted net income per share—Common Stock ..................................... $ 7.61 $ 6.50 $ 6.34 $ 3.31 $ 1.98
Basic and diluted income from continuing operations per share—Class B Stock ........... $ 68.50 $ 108.00 $ 119.50 $ 249.00 $ 89.50
Basic and diluted net income per share—Class B Stock .............................. $ 69.50 $ 108.00 $ 119.50 $ 249.00 $ 89.50
Dividends declared per share—Common Stock ..................................... $ 1.15 $ 0.95 $ 0.78 $ 0.625 $ 0.50
Dividends declared per share—Class B Stock ...................................... $ 9.625 $ 9.625 $ 9.625 $ 9.625 $ 9.625
Ratio of earnings to fixed charges(1) ............................................. 2.05 2.12 2.19 2.10 1.78
As of December 31,
2007 2006 2005 2004 2003
(in millions)
Balance Sheet Data:
Total investments excluding policy loans .......................................... $233,770 $226,530 $213,031 $209,383 $174,042
Separate account assets ........................................................ 195,583 177,463 153,159 115,568 106,680
Total assets ................................................................. 485,814 454,266 413,374 400,828 321,274
Future policy benefits and policyholders’ account balances ........................... 195,622 187,603 177,531 179,337 146,223
Separate account liabilities ..................................................... 195,583 177,463 153,159 115,568 106,680
Short-term debt .............................................................. 15,657 12,536 11,114 4,044 4,739
Long-term debt .............................................................. 14,101 11,423 8,270 7,627 5,610
Total liabilities .............................................................. 462,357 431,374 390,611 378,484 299,982
Stockholders’ equity(2) ........................................................ $ 23,457 $ 22,892 $ 22,763 $ 22,344 $ 21,292
(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) The Company adopted Statement of Financial Accounting Standards No. 158, “Employers’ Accounting for Defined Benefit Pension and Other
Postretirement Plans” effective December 31, 2006, which resulted in a reduction of stockholders’ equity of $556 million upon adoption.
12 Prudential Financial 2007 Annual Report