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Equity (Tables)
 12 Months Ended
Dec. 31, 2019
Stockholders' Equity Note [Abstract]  
Common Stock Disclosure
The changes in the number of shares of Common Stock issued, held in treasury and outstanding, are as follows for the periods indicated:
 
 
Common Stock
 
 
Issued
 
Held In
Treasury
 
Outstanding
 
 
 
 
 
 
 
 
 
 
 
(in millions)
Balance, December 31, 2016
 
660.1

 
230.5

 
429.6

Common Stock issued
 
0.0

 
0.0

 
0.0

Common Stock acquired
 
0.0

 
11.5

 
(11.5
)
Stock-based compensation programs(1)
 
0.0

 
(4.5
)
 
4.5

Balance, December 31, 2017
 
660.1

 
237.5

 
422.6

Common Stock issued
 
0.0

 
0.0

 
0.0

Common Stock acquired
 
0.0

 
14.9

 
(14.9
)
Stock-based compensation programs(1)
 
0.0

 
(3.0
)
 
3.0

Balance, December 31, 2018
 
660.1

 
249.4

 
410.7

Common Stock issued (2)(3)
 
6.2

 
(5.5
)
 
11.7

Common Stock acquired
 
0.0

 
27.2

 
(27.2
)
Stock-based compensation programs(1)
 
0.0

 
(3.6
)
 
3.6

Balance, December 31, 2019
 
666.3

 
267.5

 
398.8

__________
(1)
Represents net shares issued from treasury pursuant to the Company’s stock-based compensation programs.
(2)
In August 2019, as a result of the note holders’ exercise of the exchange option on $500 million of surplus notes, the Company issued approximately 6.2 million shares of Common Stock at an exchange rate equal to 12.3877 shares of Common Stock per each $1,000 principal amount of surplus notes. The Company’s obligations under the surplus notes are now satisfied. For additional information, see Note 20.
(3)
In October 2019, the Company issued approximately 5.5 million shares of restricted Common Stock as part of consideration paid for the Assurance IQ acquisition. For additional information about the acquisition, see Note 1.
Share Repurchases Authorizations
The following table summarizes share repurchases for each of the past three years as well as the share repurchase authorization for 2020 which was approved by the Board of Directors in December 2019.
 
 
January 1, 2020 -
December 31, 2020

 
January 1, 2019 -
December 31, 2019

 
January 1, 2018 -
December 31, 2018
 
January 1, 2017 -
December 31, 2017
Total Board authorized share repurchase amount ($ in billions)
 
$
2.0

 
$
2.5

 
$
1.5

 
$
1.25

Total number of shares repurchased under this authorization as of the period end (in millions)
 
N/A*

 
27.2

 
14.9

 
11.5

__________
* Share repurchase authorization for a future period.
Components of Accumulated Other Comprehensive Income (Loss) The balance of and changes in each component of AOCI as of and for the years ended December 31, are as follows:
 
 
Accumulated Other Comprehensive Income (Loss)
Attributable to Prudential Financial, Inc.
 
Foreign 
Currency
Translation
Adjustment
 
Net Unrealized
Investment
Gains
(Losses)(1)
 
Pension and
Postretirement
Unrecognized Net
Periodic Benefit (Cost)
 
Total Accumulated Other Comprehensive Income (Loss)
 
(in millions)
Balance, December 31, 2016
$
(973
)
 
$
18,171

 
$
(2,577
)
 
$
14,621

Change in OCI before reclassifications
768

 
4,026

 
(153
)
 
4,641

Amounts reclassified from AOCI
1

 
(1,629
)
 
224

 
(1,404
)
Income tax benefit (expense)
(65
)
 
(600
)
 
(119
)
 
(784
)
Balance, December 31, 2017
(269
)
 
19,968

 
(2,625
)
 
17,074

Change in OCI before reclassifications
(74
)
 
(7,614
)
 
(547
)
 
(8,235
)
Amounts reclassified from AOCI
1

 
(779
)
 
227

 
(551
)
Income tax benefit (expense)
9

 
1,735

 
68

 
1,812

Cumulative effect of adoption of ASU 2016-01
0

 
(847
)
 
0

 
(847
)
Cumulative effect of adoption of ASU 2018-02
(231
)
 
2,282

 
(398
)
 
1,653

Balance, December 31, 2018
(564
)
 
14,745

 
(3,275
)
 
10,906

Change in OCI before reclassifications
37

 
18,540

 
(563
)
 
18,014

Amounts reclassified from AOCI
27

 
(1,345
)
 
241

 
(1,077
)
Income tax benefit (expense)
(36
)
 
(3,835
)
 
60

 
(3,811
)
Cumulative effect of adoption of ASU 2017-12
0

 
7

 
0

 
7

Balance, December 31, 2019
$
(536
)
 
$
28,112

 
$
(3,537
)
 
$
24,039

__________
(1)
Includes cash flow hedges of $832 million, $811 million and $(39) million as of December 31, 2019, 2018, and 2017, respectively.
Reclassification Out Of Accumulated Other Comprehensive Income (Loss)
Reclassifications out of Accumulated Other Comprehensive Income (Loss)
 
 
Years Ended December  31,
 
Affected line item in Consolidated
Statements of Operations
 
2019
 
2018
 
2017
 
 
(in millions)
 
 
Amounts reclassified from AOCI(1)(2):
 
 
 
 
 
 
 
Foreign currency translation adjustment:
 
 
 
 
 
 
 
Foreign currency translation adjustment
$
(27
)
 
$
(1
)
 
$
(3
)
 
Realized investment gains (losses), net
Foreign currency translation adjustment
0

 
0

 
2

 
Other income (loss)
Total foreign currency translation adjustment
(27
)
 
(1
)
 
(1
)
 
 
Net unrealized investment gains (losses):
 
 
 
 
 
 
 
Cash flow hedges—Interest Rate
58

 
1

 
(2
)
 
(3)
Cash flow hedges—Currency
6

 
7

 
0

 
(3)
Cash flow hedges—Currency/Interest rate
315

 
543

 
(16
)
 
(3)
Net unrealized investment gains (losses) on available-for-sale securities
966

 
228

 
1,647

 
 
Total net unrealized investment gains (losses)
1,345

 
779

 
1,629

 
(4)
Amortization of defined benefit items:
 
 
 
 
 
 
 
Prior service cost
0

 
3

 
3

 
(5)
Actuarial gain (loss)
(241
)
 
(230
)
 
(227
)
 
(5)
Total amortization of defined benefit items
(241
)
 
(227
)
 
(224
)
 
 
Total reclassifications for the period
$
1,077

 
$
551

 
$
1,404

 
 
__________
(1)
All amounts are shown before tax.
(2)
Positive amounts indicate gains/benefits reclassified out of AOCI. Negative amounts indicate losses/costs reclassified out of AOCI.
(3)
See Note 5 for additional information on cash flow hedges.
(4)
See table below for additional information on unrealized investment gains (losses), including the impact on deferred policy acquisition and other costs, future policy benefits and policyholders’ dividends.
(5)
See Note 18 for information on employee benefit plans.
Net Unrealized Investment Gain (Loss) AOCI Rollforward The amounts for the periods indicated below, split between amounts related to fixed maturity securities on which an OTTI loss has been recognized, and all other net unrealized investment gains (losses), are as follows:
 
Net Unrealized Investment Gains (Losses) on Fixed Maturity Securities on which an OTTI loss has been recognized
 
Net Unrealized
Gains (Losses)
on Investments
 
DAC, DSI, VOBA and Reinsurance Recoverables
 
Future Policy
Benefits, Policyholders’
Account
Balances and Reinsurance Payables
 
Policyholders’
Dividends
 
Deferred
Income
Tax
(Liability)
Benefit
 
Accumulated Other Comprehensive Income (Loss)
Related to Net
Unrealized
Investment
Gains (Losses)
 
(in millions)
Balance, December 31, 2016
$
312

 
$
(5
)
 
$
(6
)
 
$
(47
)
 
$
(97
)
 
$
157

Net investment gains (losses) on investments arising during the period
79

 
 
 
 
 
 
 
(22
)
 
57

Reclassification adjustment for (gains) losses included in net income
(85
)
 
 
 
 
 
 
 
23

 
(62
)
Reclassification adjustment for OTTI losses excluded from net income(1)
(20
)
 
 
 
 
 
 
 
5

 
(15
)
Impact of net unrealized investment (gains) losses on DAC, DSI, VOBA and reinsurance recoverables
 
 
3

 
 
 
 
 
(1
)
 
2

Impact of net unrealized investment (gains) losses on future policy benefits, policyholders’ account balances and reinsurance payables
 
 
 
 
9

 
 
 
(2
)
 
7

Impact of net unrealized investment (gains) losses on policyholders’ dividends
 
 
 
 
 
 
1

 
0

 
1

Balance, December 31, 2017
286

 
(2
)
 
3

 
(46
)
 
(94
)
 
147

Net investment gains (losses) on investments arising during the period
(19
)
 
 
 
 
 
 
 
8

 
(11
)
Reclassification adjustment for (gains) losses included in net income
(76
)
 
 
 
 
 
 
 
33

 
(43
)
Reclassification adjustment for OTTI losses excluded from net income(1)
(2
)
 
 
 
 
 
 
 
1

 
(1
)
Impact of net unrealized investment (gains) losses on DAC, DSI, VOBA and reinsurance recoverables
 
 
1

 
 
 
 
 
0

 
1

Impact of net unrealized investment (gains) losses on future policy benefits, policyholders’ account balances and reinsurance payables
 
 
 
 
1

 
 
 
0

 
1

Impact of net unrealized investment (gains) losses on policyholders’ dividends
 
 
 
 
 
 
23

 
(9
)
 
14

Balance, December 31, 2018
189

 
(1
)
 
4

 
(23
)
 
(61
)
 
108

Net investment gains (losses) on investments arising during the period
129

 
 
 
 
 
 
 
(29
)
 
100

Reclassification adjustment for (gains) losses included in net income
(96
)
 
 
 
 
 
 
 
21

 
(75
)
Reclassification adjustment for OTTI losses excluded from net income(1)
21

 
 
 
 
 
 
 
(5
)
 
16

Impact of net unrealized investment (gains) losses on DAC, DSI, VOBA and reinsurance recoverables
 
 
0

 
 
 
 
 
0

 
0

Impact of net unrealized investment (gains) losses on future policy benefits, policyholders’ account balances and reinsurance payables
 
 
 
 
1

 
 
 
0

 
1

Impact of net unrealized investment (gains) losses on policyholders’ dividends
 
 
 
 
 
 
1

 
0

 
1

Balance, December 31, 2019
$
243

 
$
(1
)
 
$
5

 
$
(22
)
 
$
(74
)
 
$
151

__________
(1)
Represents “transfers in” related to the portion of OTTI losses recognized during the period that were not recognized in earnings for securities with no prior OTTI loss.
All Other Net Unrealized Investment Gain (Loss) AOCI Rollforward
All Other Net Unrealized Investment Gains (Losses) in AOCI
 
Net Unrealized
Gains (Losses)
on Investments(1)
 
DAC, DSI, VOBA and Reinsurance Recoverables
 
Future Policy
Benefits, Policyholders’
Account
Balances and Reinsurance Payables
 
Policyholders’
Dividends
 
Deferred
Income
Tax
(Liability)
Benefit
 
Accumulated Other Comprehensive Income (Loss)
Related to Net
Unrealized
Investment
Gains (Losses)
 
(in millions)
Balance, December 31, 2016
$
32,420

 
$
(1,056
)
 
$
(1,136
)
 
$
(2,980
)
 
$
(9,234
)
 
$
18,014

Net investment gains (losses) on investments arising during the period
5,216

 
 
 
 
 
 
 
(1,425
)
 
3,791

Reclassification adjustment for (gains) losses included in net income
(1,544
)
 
 
 
 
 
 
 
421

 
(1,123
)
Reclassification adjustment for OTTI losses excluded from net income(2)
20

 
 
 
 
 
 
 
(5
)
 
15

Impact of net unrealized investment (gains) losses on DAC, DSI, VOBA and reinsurance recoverables
 
 
(524
)
 
 
 
 
 
191

 
(333
)
Impact of net unrealized investment (gains) losses on future policy benefits, policyholders’ account balances and reinsurance payables
 
 
 
 
(107
)
 
 
 
25

 
(82
)
Impact of net unrealized investment (gains) losses on policyholders’ dividends
 
 
 
 
 
 
(651
)
 
190

 
(461
)
Balance, December 31, 2017
36,112

 
(1,580
)
 
(1,243
)
 
(3,631
)
 
(9,837
)
 
19,821

Net investment gains (losses) on investments arising during the period
(10,838
)
 
 
 
 
 
 
 
2,893

 
(7,945
)
Reclassification adjustment for (gains) losses included in net income
(703
)
 
 
 
 
 
 
 
303

 
(400
)
Reclassification adjustment for OTTI losses excluded from net income(2)
2

 
 
 
 
 
 
 
(1
)
 
1

Impact of net unrealized investment (gains) losses on DAC, DSI, VOBA and reinsurance recoverables
 
 
842

 
 
 
 
 
(263
)
 
579

Impact of net unrealized investment (gains) losses on future policy benefits, policyholders’ account balances and reinsurance payables
 
 
 
 
452

 
 
 
(186
)
 
266

Impact of net unrealized investment (gains) losses on policyholders’ dividends
 
 
 
 
 
 
1,924

 
(874
)
 
1,050

Cumulative effect of adoption of ASU 2016-01
(2,042
)
 
 
 
 
 
813

 
212

 
(1,017
)
Cumulative effect of adoption of ASU 2018-02
 
 
 
 
 
 
 
 
2,282

 
2,282

Balance, December 31, 2018
22,531

 
(738
)
 
(791
)
 
(894
)
 
(5,471
)
 
14,637

Net investment gains (losses) on investments arising during the period
23,826

 
 
 
 
 
 
 
(5,282
)
 
18,544

Reclassification adjustment for (gains) losses included in net income
(1,249
)
 
 
 
 
 
 
 
277

 
(972
)
Reclassification adjustment for OTTI losses excluded from net income(2)
(21
)
 
 
 
 
 
 
 
5

 
(16
)
Impact of net unrealized investment (gains) losses on DAC, DSI, VOBA and reinsurance recoverables
 
 
(846
)
 
 
 
 
 
190

 
(656
)
Impact of net unrealized investment (gains) losses on future policy benefits, policyholders’ account balances and reinsurance payables
 
 
 
 
(2,123
)
 
 
 
475

 
(1,648
)
Impact of net unrealized investment (gains) losses on policyholders’ dividends
 
 
 
 
 
 
(2,450
)
 
515

 
(1,935
)
Cumulative effect of adoption of ASU 2017-12
9

 
 
 
 
 
 
 
(2
)
 
7

Balance, December 31, 2019
$
45,096

 
$
(1,584
)
 
$
(2,914
)
 
$
(3,344
)
 
$
(9,293
)
 
$
27,961

__________
(1)
Includes cash flow hedges. See Note 5 for information on cash flow hedges.
(2)
Represents “transfers out” related to the portion of OTTI losses recognized during the period that were not recognized in earnings for securities with no prior OTTI loss.
Statutory Financial Information
The following table summarizes certain statutory financial information for the Company’s two largest U.S. insurance subsidiaries for the periods indicated:

 
 
PICA
 
PALAC
In millions and presented as of or for the year ended
 
December 31, 2019
 
December 31, 2018
 
December 31, 2017
 
December 31, 2019
 
December 31, 2018
 
December 31, 2017
Statutory net income (loss)(1)
 
$
(169
)
 
$
1,324

 
$
(217
)
 
$
(2,052
)
 
$
(852
)
 
$
3,911

Statutory capital and surplus(1)
 
$
11,483

 
$
10,695

 
$
9,948

 
$
4,748

 
$
6,396

 
$
8,059

__________
(1)
Prior year amounts have been updated to conform to finalized statutory filing where applicable.