X hits on this document

PDF document

Prudential Financial 2001 Annual Report - page 152 / 172

618 views

0 shares

0 downloads

0 comments

152 / 172

Prudential Financial, Inc.

Notes to Consolidated Financial Statements

20.

Segment Information (continued)

mitigate the risk of unfavorable changes in currency exchange rates. The financial results of the Other Asset Management segment reflect the impact of intercompany fair value hedging arrangements with Corporate and Other operations associated with the Company’s mortgage securitization operations.

Segment results reflect certain reclassifications of historical revenues and expenses to conform to the Company’s current presentation. These reclassifications have no impact on “adjusted operating income” of any of the Company’s divisions or segments. The most significant reclassification is to revise the treatment of certain transactions between segments, so that all such transactions are eliminated within Corporate and Other results rather than at the division level.

As discussed in Note 4, Capital Markets Restructuring, the Company has exited the lead-managed equity underwriting for corporate issuers and institutional fixed income businesses. Results for these businesses are included in Divested Businesses in the tables that follow. Income from continuing operations before income taxes for these businesses was income of $23 million in 1999, a loss of $620 million in 2000 and a loss of $159 million in 2001. The loss in 2000 includes a restructuring charge of $476 million.

310

(112)

12

210

70 113

(72) (100)

14

(2) 27

183 611

(172) (57)

14

25 554

(88) 523

(57)

(88) 466

105 114

(8)

97 114

219 28

(8) 187

(147)

(588)

211 (520)

1,263 436 $1,699

(162) (543) $(705)

26 (512) $(486)

$—

(147) $(147)

(588) $ (588)

392 (619) $(227)

The summary below reconciles adjusted operating income to income from continuing operations before income taxes:

Adjusted Operating Income

Individual Life Insurance . . . . . . . . . . Private Client Group . . . . . . . . . . . . . . Retail Investments . . . . . . . . . . . . . . . Property and Casualty Insurance . . . .

Total U.S. Consumer Division . .

Group Insurance . . . . . . . . . . . . . . . . . Other Employee Benefits . . . . . . . . . .

Total Employee Benefits Division . . . . . . . . . . . . . . . . .

International Insurance . . . . . . . . . . . . International Securities and Investments . . . . . . . . . . . . . . . . . . .

Total International Division . . . .

Investment Management and Advisory Services . . . . . . . . . . . . . Other Asset Management . . . . . . . . . .

Total Asset Management Division . . . . . . . . . . . . . . . . .

Corporate and Other . . . . . . . . . . . . . .

Total Financial Services Businesses . . . . . . . . . . . . . . .

Closed Block Business . . . . . . . . . . . . Total . . . . . . . . . . . . . . . . . . . . . .

150

Growing and Protecting Your Wealth

$ 273 (239) 181 95

Realized Investment Gains (Losses), Net

$ (45) (63) (4)

Income from Continuing Operations Before Income Taxes

$ 228 (239) 130 91

Year

ended December 31, 2001 Reconciling Items

Charges Related to Realized Gains (Losses), Net

$— 12

$—

$—

$—

(In Millions)

Sales

Divested Business

Practices and Related Demutualization

Remedies

Runoff

and Costs

Operations

Costs and Expenses

Document info
Document views618
Page views620
Page last viewedMon Jan 23 00:36:37 UTC 2017
Pages172
Paragraphs6423
Words154936

Comments