Segment Information (Tables)

3 Months Ended

Mar. 31, 2020

Reconciliation of Operating Profit (Loss) from Segments to Consolidated

The table below reconciles “Adjusted operating income before income taxes” to “Income (loss) before income taxes and equity in earnings of operating joint ventures”:



	Three Months Ended March 31,
	2020			2019
Adjusted operating income before income taxes by segment:	(in millions)
PGIM	$	164		$	214
U.S. Businesses:
U.S. Workplace Solutions division:
Retirement	245			251
Group Insurance	44			53
Total U.S. Workplace Solutions division	289			304
U.S. Individual Solutions division:
Individual Annuities(1)	373			472
Individual Life	(20		)	105
Total U.S. Individual Solutions division	353			577
Assurance IQ division(2):
Assurance IQ	(23		)	0
Total Assurance IQ division	(23		)	0
Total U.S. Businesses	619			881
International Businesses	751			922
Corporate and Other	(342		)	(412		)
Total segment adjusted operating income before income taxes	1,192			1,605
Reconciling items:
Realized investment gains (losses), net, and related adjustments(3)	105			(612		)
Charges related to realized investment gains (losses), net	(803		)	25
Market experience updates(4)	(947		)	0
Divested and Run-off Businesses:
Closed Block division	(1		)	(19		)
Other Divested and Run-off Businesses	80			174
Other adjustments(5)	45			0
Equity in earnings of operating joint ventures and earnings attributable to noncontrolling interests	(9		)	(33		)
Consolidated income (loss) before income taxes and equity in earnings of operating joint ventures	$	(338	)	$	1,140

________


(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. For additional information, see Note 1 to the Consolidated Financial Statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2019.


(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.

Reconciliation of Certain Financial Information from Segments to Consolidated

The tables below present certain financial information for the Company’s segments and its Corporate and Other operations, including assets by segment and revenues by segment on an adjusted operating income basis, and the reconciliation of the segment totals to amounts reported in the Consolidated Financial Statements.



	March 31, 2020		December 31, 2019
Assets by segment:	(in millions)
PGIM	$	47,099	$	47,655
U.S. Businesses:
U.S. Workplace Solutions division:
Retirement	187,992		198,153
Group Insurance	43,706		43,712
Total U.S. Workplace Solutions division	231,698		241,865
U.S. Individual Solutions division:
Individual Annuities	179,366		189,040
Individual Life	92,364		96,072
Total U.S. Individual Solutions division	271,730		285,112
Assurance IQ division(1):
Assurance IQ	2,618		2,639
Total Assurance IQ division	2,618		2,639
Total U.S. Businesses	506,046		529,616
International Businesses	243,012		241,071
Corporate and Other	17,673		16,883
Closed Block division	59,882		61,327
Total assets per Unaudited Interim Consolidated Financial Statements	$	873,712	$	896,552

__________


(1)	Assurance IQ was acquired by the Company in October 2019. For additional information, see Note 1 to the Consolidated Financial Statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2019.



	Three Months Ended March 31,
	2020			2019
Revenues on an adjusted operating income basis:	(in millions)
PGIM	$	778		$	870
U.S. Businesses:
U.S. Workplace Solutions division:
Retirement	2,437			2,639
Group Insurance	1,424			1,441
Total U.S. Workplace Solutions division	3,861			4,080
U.S. Individual Solutions division:
Individual Annuities	1,148			1,235
Individual Life	1,530			1,482
Total U.S. Individual Solutions division	2,678			2,717
Assurance IQ division(1):
Assurance IQ	60			0
Total Assurance IQ division	60			0
Total U.S. Businesses	6,599			6,797
International Businesses	6,162			6,152
Corporate and Other	(205		)	(171		)
Total revenues on an adjusted operating income basis	13,334			13,648
Reconciling items:
Realized investment gains (losses), net, and related adjustments(2)	(558		)	(209		)
Charges related to realized investment gains (losses), net	(62		)	(72		)
Market experience updates(3)	(332		)	0
Divested and Run-off Businesses:
Closed Block division	677			1,374
Other Divested and Run-off Businesses	359			388
Other adjustments(4)	58			0
Equity in earnings of operating joint ventures and earnings attributable to noncontrolling interests	(12		)	(38		)
Total revenues per Unaudited Interim Consolidated Financial Statements	$	13,464		$	15,091

__________


(1)	Assurance IQ was acquired by the Company in October 2019. For additional information, see Note 1 to the Consolidated Financial Statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2019.


(2)	Prior period amounts have been updated to conform to current period presentation.


(3)	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.

(4)

Schedule of Intersegment Revenues

The PGIM segment revenues include intersegment revenues, primarily consisting of asset-based management and administration fees, as follows:



	Three Months Ended March 31,
	2020		2019
	(in millions)
PGIM segment intersegment revenues	$	217	$	180

Schedule of Asset Management and Service Fees

The table below presents asset management and service fees, predominantly related to investment management activities, for the periods indicated:



	Three Months Ended March 31,
	2020		2019
	(in millions)
Asset-based management fees	$	875	$	843
Performance-based incentive fees	14		35
Other fees	144		138
Total asset management and service fees	$	1,033	$	1,016