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Equity
 3 Months Ended
Mar. 31, 2020
Stockholders' Equity Note [Abstract]  
Equity EQUITY
 
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, 2019
666.3

 
267.5

 
398.8

Common Stock issued
0.0

 
0.0

 
0.0

Common Stock acquired
0.0

 
6.7

 
(6.7
)
Stock-based compensation programs(1)
0.0

 
(1.7
)
 
1.7

Balance, March 31, 2020
666.3

 
272.5

 
393.8

__________ 
(1)
Represents net shares issued from treasury pursuant to the Company’s stock-based compensation programs.

In December 2019, Prudential Financial’s Board of Directors (the “Board”) authorized the Company to repurchase at management’s discretion up to $2.0 billion of its outstanding Common Stock during the period from January 1, 2020 through December 31, 2020. As of March 31, 2020, 6.7 million shares of the Company’s Common Stock were repurchased under this authorization at a total cost of $500 million. The Company temporarily suspended Common Stock repurchases under the existing repurchase authorization beginning April 1, 2020; however, the Company will continue to evaluate the resumption of share repurchases under the existing Board authorization for 2020.

The timing and amount of share repurchases are determined by management based upon market conditions and other considerations, and repurchases may be effected in the open market, through derivative, accelerated repurchase and other negotiated transactions and through prearranged trading plans complying with Rule 10b5-1(c) under the Securities Exchange Act of 1934 (the “Exchange Act”). Numerous factors could affect the timing and amount of any future repurchases under the share repurchase authorization, including increased capital needs of the Company due to changes in regulatory capital requirements, opportunities for growth and acquisitions, and the effect of adverse market conditions on the segments.

Dividends declared per share of Common Stock are as follows for the periods indicated:
 
Three Months Ended
March 31,
 
2020
 
2019
Dividends declared per share of Common Stock
$
1.10

 
$
1.00


Accumulated Other Comprehensive Income (Loss)
 
AOCI represents the cumulative OCI items that are reported separate from net income and detailed on the Unaudited Interim Consolidated Statements of Comprehensive Income. The balance of and changes in each component of AOCI as of and for the three months ended March 31, 2020 and 2019, 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, 2019
$
(536
)
 
$
28,112

 
$
(3,537
)
 
$
24,039

Change in OCI before reclassifications
(298
)
 
(808
)
 
2

 
(1,104
)
Amounts reclassified from AOCI
3

 
(546
)
 
70

 
(473
)
Income tax benefit (expense)
(25
)
 
179

 
(16
)
 
138

Balance, March 31, 2020
$
(856
)
 
$
26,937

 
$
(3,481
)
 
$
22,600


 
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, 2018
$
(564
)
 
$
14,745

 
$
(3,275
)
 
$
10,906

Change in OCI before reclassifications
(109
)
 
8,564

 
4

 
8,459

Amounts reclassified from AOCI
5

 
(275
)
 
60

 
(210
)
Income tax benefit (expense)
(3
)
 
(1,926
)
 
(15
)
 
(1,944
)
Cumulative effect of adoption of ASU 2017-12
0

 
7

 
0

 
7

Balance, March 31, 2019
$
(671
)
 
$
21,115

 
$
(3,226
)
 
$
17,218

__________
(1)
Includes cash flow hedges of $3,186 million and $832 million as of March 31, 2020 and December 31, 2019, respectively, and $776 million and $811 million as of March 31, 2019 and December 31, 2018, respectively.
 
Reclassifications out of Accumulated Other Comprehensive Income (Loss)

 
Three Months Ended
March 31,
 
Affected line item in Consolidated Statements of Operations
 
2020
 
2019
 
 
(in millions)
 
Amounts reclassified from AOCI(1)(2):
 
 
 
 
 
Foreign currency translation adjustment:
 
 
 
 
 
Foreign currency translation adjustments
$
(3
)
 
$
(5
)
 
Realized investment gains (losses), net
Foreign currency translation adjustments
0

 
0

 
Other income (loss)
Total foreign currency translation adjustment
(3
)
 
(5
)
 
 
Net unrealized investment gains (losses):
 
 
 
 
 
Cash flow hedges—Interest rate
(1
)
 
(1
)
 
(3)
Cash flow hedges—Currency
1

 
1

 
(3)
Cash flow hedges—Currency/Interest rate
388

 
15

 
(3)
Net unrealized investment gains (losses) on available-for-sale securities
158

 
260

 
 
Total net unrealized investment gains (losses)
546

 
275

 
(4)
Amortization of defined benefit pension items:
 
 
 
 
 
Prior service cost
(1
)
 
0

 
(5)
Actuarial gain (loss)
(69
)
 
(60
)
 
(5)
Total amortization of defined benefit pension items
(70
)
 
(60
)
 
 
Total reclassifications for the period
$
473

 
$
210

 
 
__________
(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 10 for information on employee benefit plans.
 
Net Unrealized Investment Gains (Losses)
 
Net unrealized investment gains (losses) on available-for-sale fixed maturity securities and certain other invested assets and other assets are included in the Company’s Unaudited Interim Consolidated Statements of Financial Position as a component of AOCI. Changes in these amounts include reclassification adjustments to exclude from “Other comprehensive income (loss)” those items that are included as part of “Net income (loss)” for a period that had been part of “Other comprehensive income (loss)” in earlier periods. The amounts for the periods indicated below, split between amounts related to available-for-sale fixed maturity securities on which an allowance for credit losses has been recognized, and all other net unrealized investment gains (losses), are as follows:
 
Net Unrealized Investment Gains (Losses) on Available-for-sale Fixed Maturity Securities on which an allowance for credit losses 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, 2019(1)
$
0

 
$
0

 
$
0

 
$
0

 
$
0

 
$
0

Net investment gains (losses) on investments arising during the period
0

 
 
 
 
 
 
 
0

 
0

Reclassification adjustment for (gains) losses included in net income
(38
)
 
 
 
 
 
 
 
6

 
(32
)
Increase (Decrease) due to non-credit related losses recognized in AOCI during the period
(80
)
 
 
 
 
 
 
 
13

 
(67
)
Impact of net unrealized investment (gains) losses on DAC, DSI, VOBA and reinsurance recoverables
 
 
2

 
 
 
 
 
0

 
2

Impact of net unrealized investment (gains) losses on future policy benefits, policyholders’ account balances and reinsurance payables
 
 
 
 
(5
)
 
 
 
1

 
(4
)
Impact of net unrealized investment (gains) losses on policyholders’ dividends
 
 
 
 
 
 
4

 
(1
)
 
3

Balance, March 31, 2020
$
(118
)
 
$
2

 
$
(5
)
 
$
4

 
$
19

 
$
(98
)
__________
(1)
Allowance for credit losses on available-for-sale fixed maturity securities effective January 1, 2020.

 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, 2019(2)
$
45,339

 
$
(1,585
)
 
$
(2,909
)
 
$
(3,366
)
 
$
(9,367
)
 
$
28,112

Net investment gains (losses) on investments arising during the period
(1,422
)
 
 
 
 
 
 
 
225

 
(1,197
)
Reclassification adjustment for (gains) losses included in net income
(508
)
 
 
 
 
 
 
 
81

 
(427
)
Reclassification due to allowance for credit losses recorded during the period
80

 
 
 
 
 
 
 
(13
)
 
67

Impact of net unrealized investment (gains) losses on DAC, DSI, VOBA and reinsurance recoverables
 
 
419

 
 
 
 
 
(90
)
 
329

Impact of net unrealized investment (gains) losses on future policy benefits, policyholders’ account balances and reinsurance payables
 
 
 
 
62

 
 
 
(15
)
 
47

Impact of net unrealized investment (gains) losses on policyholders’ dividends
 
 
 
 
 
 
132

 
(28
)
 
104

Balance, March 31, 2020
$
43,489

 
$
(1,166
)
 
$
(2,847
)
 
$
(3,234
)
 
$
(9,207
)
 
$
27,035

__________
(1)
Includes cash flow hedges. See Note 5 for information on cash flow hedges.
(2)
Includes net unrealized gains (losses) for which an OTTI loss had been previously recognized.