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Segment Information (Tables)
 12 Months Ended
Dec. 31, 2019
Segment Reporting [Abstract]  
Reconciliation of Operating Profit (Loss) from Segments to Consolidated
The following table sets forth the significant components of “Realized investment gains (losses), net” that are included in adjusted operating income and, as a result, are reflected as adjustments to “Realized investment gains (losses), net” for purposes of calculating adjusted operating income:
 
 
 
Year Ended December 31,
 
 
2019
 
2018
 
2017
 
 
(in millions)
Net gains (losses) from(1):
 
 
 
 
 
 
Terminated hedges of foreign currency earnings
 
$
65

 
$
(15
)
 
$
(15
)
Current period yield adjustments
 
$
331

 
$
367

 
$
434

Principal source of earnings
 
$
(37
)
 
$
219

 
$
(8
)
 __________
(1)
In addition to the items in the table above, “Realized investment gains (losses), net, and related charges and adjustments” also includes an adjustment to reflect “Realized investment gains (losses), net” related to Divested and Run-off Businesses. See “Divested and Run-off Businesses” discussed below.
The table below reconciles adjusted operating income before income taxes to income before income taxes and equity in earnings of operating joint ventures:
 

 
 
Year ended December 31,
 
 
2019
 
2018
 
2017

 
(in millions)
Adjusted operating income before income taxes by segment:
 
 
 
 
 
 
PGIM
 
$
998

 
$
959

 
$
979

U.S. Businesses:
 
 
 
 
 
 
U.S. Workplace Solutions division:
 
 
 
 
 
 
Retirement
 
1,301

 
1,049

 
1,244

Group Insurance
 
285

 
229

 
253

Total U.S. Workplace Solutions division
 
1,586

 
1,278

 
1,497

U.S. Individual Solutions division:
 
 
 
 
 
 
Individual Annuities(1)
 
1,843

 
1,925

 
2,198

Individual Life
 
87

 
223

 
(191
)
Total U.S. Individual Solutions division
 
1,930

 
2,148

 
2,007

Assurance IQ division(2):
 
 
 
 
 
 
Assurance IQ
 
(9
)
 
0

 
0

Total Assurance IQ division
 
(9
)
 
0

 
0

Total U.S. Businesses
 
3,507

 
3,426

 
3,504

International Businesses
 
3,359

 
3,266

 
3,198

Corporate and Other
 
(1,766
)
 
(1,283
)
 
(1,437
)
Total segment adjusted operating income before income taxes
 
6,098

 
6,368

 
6,244

Reconciling Items:
 
 
 
 
 
 
Realized investment gains (losses), net, and related adjustments(3)
 
(764
)
 
466

 
(417
)
Charges related to realized investment gains (losses), net
 
(125
)
 
(316
)
 
544

Market experience updates(4)
 
(462
)
 
0

 
0

Divested and Run-off Businesses:
 
 
 
 
 
 
Closed Block division
 
36

 
(62
)
 
45

Other Divested and Run-off Businesses
 
452

 
(1,535
)
 
38

Other adjustments(5)
 
(47
)
 
0

 
0

Equity in earnings of operating joint ventures and earnings attributable to noncontrolling interests
 
(103
)
 
(87
)
 
33

Consolidated income (loss) before income taxes and equity in earnings of operating joint ventures
 
$
5,085

 
$
4,834

 
$
6,487


  __________
(1)
Individual Annuities segment results reflect DAC as if the individual annuity business is a stand-alone operation. The elimination of intersegment costs capitalized in accordance with this policy is included in consolidating adjustments within Corporate and Other operations.
(2)
Assurance IQ was acquired by the Company in October 2019. See Note 1 for additional information.
(3)
Prior period amounts have been updated to conform to current period presentation.
(4)
Represents the immediate impacts in current period results from changes in current market conditions on estimates of profitability, which are excluded from adjusted operating income beginning with the second quarter of 2019. The Company had historically recognized these impacts in adjusted operating income.
(5)
Represents adjustments not included in the above reconciling items. “Other adjustments” include certain components of the consideration for the Assurance IQ acquisition, which are recognized as compensation expense over the requisite service periods, as well as changes in the fair value of contingent consideration.



The following table sets forth certain other items excluded from adjusted operating income and reflected as an adjustment to “Realized investment gains (losses), net” for purposes of calculating adjusted operating income:
 
 
 
Year Ended December 31,
 
 
2019
 
2018
 
2017
 
 
 
 
 
 
 
 
 
(in millions)
Net gains (losses) from:
 
 
Investments carried at fair value through net income
 
$
558

 
$
(417
)
 
$
184

Foreign currency exchange movements
 
$
61

 
$
(289
)
 
$
(135
)
Gains (losses), net, on experience-rated contracts (excluding derivatives and commercial mortgage and other loans)(1)
 
$
22

 
$
(153
)
 
$
185

Other activities
 
$
(31
)
 
$
(41
)
 
$
(20
)

  __________
(1)
Adjusted operating income excludes net investment gains (losses) on assets supporting experience-rated contractholder liabilities, related derivatives, and commercial mortgage and other loans. The activity for derivatives and commercial mortgage and other loans that support these experience-rated products are reported in “Realized investment gains (losses), net” and excluded from adjusted operating income.

Schedule of Segment Reporting Information, by Segment
The tables below present certain financial information for the Company’s segments and its Corporate and Other operations, including assets by segment and revenues, and benefits and expenses by segment on an adjusted operating income basis, and the reconciliation of the segment totals to amounts reported in the Consolidated Financial Statements.
 
 
 
As of December 31,
 
 
2019
 
2018
 
 
(in millions)
Assets by segment:
 
 
 
 
PGIM
 
47,655

 
47,690

U.S. Businesses:
 
 
 
 
U.S. Workplace Solutions division:
 
 
 
 
Retirement
 
198,153

 
175,525

Group Insurance
 
43,712

 
41,727

Total U.S. Workplace Solutions division
 
241,865

 
217,252

U.S. Individual Solutions division:
 
 
 
 
Individual Annuities
 
189,040

 
167,899

Individual Life
 
96,072

 
83,739

Total U.S. Individual Solutions division
 
285,112

 
251,638

Assurance IQ division(1):
 
 
 
 
Assurance IQ
 
2,639

 
0

Total Assurance IQ division
 
2,639

 
0

Total U.S. Businesses
 
529,616

 
468,890

International Businesses
 
241,071

 
222,633

Corporate and Other
 
16,883

 
16,826

Closed Block division
 
61,327

 
59,039

Total assets per Consolidated Statements of Financial Position
 
$
896,552

 
$
815,078

  __________
(1)
Assurance IQ was acquired by the Company in October 2019. See Note 1 for additional information.
 
 
Year Ended December 31, 2019
Revenues, and benefits and expenses on an adjusted operating income basis by segment
 
Total Revenues
 
Net
Investment
Income
 
Total Benefits and Expenses
 
Policyholders’
Benefits
 
Interest
Credited to
Policyholders’
Account
Balances
 
Dividends to
Policyholders
 
Interest
Expense
 
Amortization
of DAC
 
(in millions)
PGIM
 
$
3,589

 
$
200

 
$
2,591

 
$
0

 
$
0

 
$
0

 
$
49

 
$
6

U.S. Businesses:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
U.S. Workplace Solutions division:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Retirement
 
15,064

 
4,738

 
13,763

 
11,061

 
1,503

 
0

 
46

 
38

Group Insurance
 
5,750

 
624

 
5,465

 
4,257

 
286

 
0

 
2

 
7

Total U.S. Workplace Solutions division
 
20,814

 
5,362

 
19,228

 
15,318

 
1,789

 
0

 
48

 
45

U.S. Individual Solutions division:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Individual Annuities
 
4,995

 
856

 
3,152

 
435

 
334

 
0

 
122

 
513

Individual Life
 
6,115

 
2,247

 
6,028

 
2,778

 
830

 
38

 
774

 
577

Total U.S. Individual Solutions division
 
11,110

 
3,103

 
9,180

 
3,213

 
1,164

 
38

 
896

 
1,090

Assurance IQ division(1):
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Assurance IQ
 
101

 
0

 
110

 
0

 
0

 
0

 
0

 
0

Total Assurance IQ division
 
101

 
0

 
110

 
0

 
0

 
0

 
0

 
0

Total U.S. Businesses
 
32,025

 
8,465

 
28,518

 
18,531

 
2,953

 
38

 
944

 
1,135

International Businesses
 
23,195

 
5,558

 
19,836

 
14,535

 
918

 
48

 
25

 
1,239

Corporate and Other
 
(677
)
 
579

 
1,089

 
36

 
0

 
0

 
521

 
(46
)
Total revenues, and benefits and expenses on an adjusted operating income basis
 
58,132

 
14,802

 
52,034

 
33,102

 
3,871

 
86

 
1,539

 
2,334

Reconciling items:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Realized investment gains (losses), net, and related adjustments
 
185

 
(36
)
 
949

 
0

 
949

 
0

 
0

 
0

Charges related to realized investment gains (losses), net
 
(254
)
 
0

 
(129
)
 
(136
)
 
(94
)
 
0

 
0

 
(181
)
Market experience updates(2)
 
(77
)
 
0

 
385

 
200

 
4

 
0

 
0

 
144

Divested and Run-off Businesses:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Closed Block division
 
5,642

 
2,323

 
5,606

 
2,907

 
130

 
2,187

 
7

 
29

Other Divested and Run-off Businesses
 
1,330

 
496

 
878

 
747

 
20

 
1

 
4

 
6

Other adjustments(3)
 
(5
)
 
0

 
42

 
0

 
0

 
0

 
0

 
0

Equity in earnings of operating joint ventures and earnings attributable to noncontrolling interests
 
(146
)
 
0

 
(43
)
 
0

 
0

 
0

 
0

 
0

Total revenue, and benefits and expenses per Consolidated Statements of Operations
 
$
64,807

 
$
17,585

 
$
59,722

 
$
36,820

 
$
4,880

 
$
2,274

 
$
1,550

 
$
2,332


 
 
Year Ended December 31, 2018
Revenues, and benefits and expenses on an adjusted operating income basis by segment
 
Total Revenues
 
Net
Investment
Income
 
Total Benefits and Expenses
 
Policyholders’
Benefits
 
Interest
Credited to
Policyholders’
Account
Balances
 
Dividends to
Policyholders
 
Interest
Expense
 
Amortization
of DAC
 
(in millions)
PGIM
 
$
3,294

 
$
73

 
$
2,335

 
$
0

 
$
0

 
$
0

 
$
40

 
$
8

U.S. Businesses:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
U.S. Workplace Solutions division:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Retirement
 
16,825

 
4,377

 
15,776

 
13,215

 
1,430

 
0

 
35

 
33

Group Insurance
 
5,685

 
616

 
5,456

 
4,241

 
282

 
0

 
2

 
5

Total U.S. Workplace Solutions division
 
22,510

 
4,993

 
21,232

 
17,456

 
1,712

 
0

 
37

 
38

U.S. Individual Solutions division:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Individual Annuities
 
4,966

 
694

 
3,041

 
370

 
335

 
0

 
67

 
511

Individual Life
 
5,831

 
2,033

 
5,608

 
2,489

 
766

 
37

 
714

 
368

Total U.S. Individual Solutions division
 
10,797

 
2,727

 
8,649

 
2,859

 
1,101

 
37

 
781

 
879

Total U.S. Businesses
 
33,307

 
7,720

 
29,881

 
20,315

 
2,813

 
37

 
818

 
917

International Businesses
 
22,234

 
5,245

 
18,968

 
14,009

 
907

 
62

 
21

 
1,233

Corporate and Other
 
(705
)
 
452

 
578

 
(12
)
 
0

 
0

 
535

 
(44
)
Total revenues, and benefits and expenses on an adjusted operating income basis
 
58,130

 
13,490

 
51,762

 
34,312

 
3,720

 
99

 
1,414

 
2,114

Reconciling items:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Realized investment gains (losses), net, and related adjustments(4)
 
(244
)
 
(41
)
 
(710
)
 
0

 
(710
)
 
0

 
0

 
0

Charges related to realized investment gains (losses), net
 
(274
)
 
0

 
42

 
(75
)
 
40

 
0

 
0

 
118

Divested and Run-off Businesses:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Closed Block division
 
4,678

 
2,288

 
4,740

 
2,972

 
132

 
1,236

 
2

 
35

Other Divested and Run-off Businesses
 
805

 
439

 
2,340

 
2,195

 
14

 
1

 
4

 
6

Equity in earnings of operating joint ventures and earnings attributable to noncontrolling interests
 
(103
)
 
0

 
(16
)
 
0

 
0

 
0

 
0

 
0

Total revenue, and benefits and expenses per Consolidated Statements of Operations
 
$
62,992

 
$
16,176

 
$
58,158

 
$
39,404

 
$
3,196

 
$
1,336

 
$
1,420

 
$
2,273



 
 
Year Ended December 31, 2017
Revenues, and benefits and expenses on an adjusted operating income basis by segment
 
Total Revenues
 
Net
Investment
Income
 
Total Benefits and Expenses
 
Policyholders’
Benefits
 
Interest
Credited to
Policyholders’
Account
Balances
 
Dividends to
Policyholders
 
Interest
Expense
 
Amortization
of DAC
 
(in millions)
PGIM
 
$
3,355

 
$
170

 
$
2,376

 
$
0

 
$
0

 
$
0

 
$
27

 
$
11

U.S. Businesses:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
U.S. Workplace Solutions division:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Retirement
 
13,843

 
4,482

 
12,599

 
10,035

 
1,507

 
0

 
26

 
26

Group Insurance
 
5,471

 
637

 
5,218

 
4,073

 
274

 
0

 
5

 
14

Total U.S. Workplace Solutions division
 
19,314

 
5,119

 
17,817

 
14,108

 
1,781

 
0

 
31

 
40

U.S. Individual Solutions division:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Individual Annuities
 
5,110

 
742

 
2,912

 
318

 
330

 
0

 
70

 
464

Individual Life
 
4,974

 
1,948

 
5,165

 
2,100

 
719

 
36

 
648

 
483

Total U.S. Individual Solutions division
 
10,084

 
2,690

 
8,077

 
2,418

 
1,049

 
36

 
718

 
947

Total U.S. Businesses
 
29,398

 
7,809

 
25,894

 
16,526

 
2,830

 
36

 
749

 
987

International Businesses
 
21,560

 
5,027

 
18,362

 
13,440

 
899

 
48

 
13

 
1,138

Corporate and Other
 
(667
)
 
493

 
770

 
21

 
0

 
0

 
533

 
(43
)
Total revenues, and benefits and expenses on an adjusted operating income basis
 
53,646

 
13,499

 
47,402

 
29,987

 
3,729

 
84

 
1,322

 
2,093

Reconciling items:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Realized investment gains (losses), net, and related adjustments(4)
 
(266
)
 
(38
)
 
151

 
0

 
151

 
0

 
0

 
0

Charges related to realized investment gains (losses), net
 
(215
)
 
0

 
(759
)
 
(69
)
 
(191
)
 
0

 
0

 
(550
)
Divested and Run-off Businesses:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Closed Block division
 
5,826

 
2,653

 
5,781

 
3,219

 
133

 
2,007

 
1

 
37

Other Divested and Run-off Businesses
 
775

 
321

 
737

 
657

 
0

 
0

 
4

 
0

Equity in earnings of operating joint ventures and earnings attributable to noncontrolling interests
 
(77
)
 
0

 
(110
)
 
0

 
0

 
0

 
0

 
0

Total revenue, and benefits and expenses per Consolidated Statements of Operations
 
$
59,689

 
$
16,435

 
$
53,202

 
$
33,794

 
$
3,822

 
$
2,091

 
$
1,327

 
$
1,580

  __________
(1)
Assurance IQ was acquired by the Company in October 2019. See Note 1 for additional information.
(2)
Represents the immediate impacts in current period results from changes in current market conditions on estimates of profitability, which are excluded from adjusted operating income beginning with the second quarter of 2019. The Company had historically recognized these impacts in adjusted operating income.
(3)
Represents adjustments not included in the above reconciling items. “Other adjustments” include certain components of the consideration for the Assurance IQ acquisition, which are recognized as compensation expense over the requisite service periods, as well as changes in the fair value of contingent consideration.
(4)
Prior period amounts have been updated to conform to current period presentation.
Schedule Of Revenues From Domestic And Foreign Operations
Revenues, calculated in accordance with U.S. GAAP, for the years ended December 31, include the following associated with the Company’s foreign and domestic operations:
 
 
 
2019
 
2018
 
2017
 
 
 
 
 
 
 
 
 
(in millions)
Domestic operations
 
$
40,868

 
$
40,603

 
$
36,573

Foreign operations, total
 
$
23,939

 
$
22,389

 
$
23,116

Foreign operations, Japan
 
$
19,626

 
$
19,125

 
$
19,589

Foreign operations, Korea
 
$
1,638

 
$
1,495

 
$
1,567
Schedule Of Intersegment Revenues The PGIM segment revenues include intersegment revenues, primarily consisting of asset-based management and administration fees, for the years ended December 31, as follows:
 
 
2019
 
2018
 
2017
 
 
 
 
 
 
 
 
 
(in millions)
PGIM segment intersegment revenues
 
$
777

 
$
731

 
$
717
Schedule of Asset Mgmt and Service Fees
The table below presents asset management and service fees, predominantly related to an investment management activities, for the periods indicated:

 
 
2019
 
2018
 
2017
 
 
 
 
 
 
 
 
 
(in millions)
Asset-based management fees
 
$
3,489

 
$
3,438

 
$
3,328

Performance-based incentive fees
 
169

 
56

 
194

Other fees
 
581

 
606

 
605

Total asset management and service fees
 
$
4,239

 
$
4,100

 
$
4,127