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PRUDENTIAL FINANCIAL, INC.
Notes to Consolidated Financial Statements
(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 Gains (Losses) in AOCI
Net Unrealized
Gains (Losses)
on Investments(1)
DAC, DSI,
and VOBA
Future Policy
Benefits and
Policyholders’
Account
Balances
Policyholders’
Dividends
Deferred
Income
Tax
(Liability)
Benefit
Accumulated
Other
Comprehensive
Income (Loss)
Related To Net
Unrealized
Investment
Gains (Losses)
(in millions)
Balance, December 31, 2012 ......................... $25,151 $(1,228) $(1,144) $(5,627) $(5,719) $11,433
Net investment gains (losses) on investments arising during
the period ...................................... (4,306) 1,443 (2,863)
Reclassification adjustment for (gains) losses included in net
income ......................................... (359) 126 (233)
Reclassification adjustment for OTTI losses excluded from
net income(2) ................................... 8 (3) 5
Impact of net unrealized investment (gains) losses on DAC,
DSI, and VOBA ................................. 509 (178) 331
Impact of net unrealized investment (gains) losses on future
policy benefits and policyholders’ account balances ..... 465 (164) 301
Impact of net unrealized investment (gains) losses on
policyholders’ dividends ........................... 1,933 (676) 1,257
Balance, December 31, 2013 ......................... 20,494 (719) (679) (3,694) (5,171) 10,231
Net investment gains (losses) on investments arising during
the period ...................................... 18,073 (6,337) 11,736
Reclassification adjustment for (gains) losses included in net
income ......................................... (1,807) 632 (1,175)
Reclassification adjustment for OTTI losses excluded from
net income(2) ................................... 4 (1) 3
Impact of net unrealized investment (gains) losses on DAC,
DSI, and VOBA ................................. (736) 254 (482)
Impact of net unrealized investment (gains) losses on future
policy benefits and policyholders’ account balances ..... (603) 211 (392)
Impact of net unrealized investment (gains) losses on
policyholders’ dividends ........................... (1,342) 468 (874)
Balance, December 31, 2014 ......................... 36,764 (1,455) (1,282) (5,036) (9,944) 19,047
Net investment gains (losses) on investments arising during
the period ...................................... (6,311) 2,268 (4,043)
Reclassification adjustment for (gains) losses included in net
income ......................................... (2,228) 801 (1,427)
Reclassification adjustment for OTTI losses excluded from
net income(2) ................................... 15 (5) 10
Impact of net unrealized investment (gains) losses on DAC,
DSI, and VOBA ................................. 695 (240) 455
Impact of net unrealized investment (gains) losses on future
policy benefits and policyholders’ account balances ..... 200 (67) 133
Impact of net unrealized investment (gains) losses on
policyholders’ dividends ........................... 2,234 (782) 1,452
Balance, December 31, 2015 ......................... $28,240 $ (760) $(1,082) $(2,802) $(7,969) $15,627
(1) Includes cash flow hedges. See Note 21 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.
16. EARNINGS PER SHARE
From demutualization through December 31, 2014, the Company had two separate classes of common stock. The Common Stock
reflected the performance of the Company’s former Financial Services Businesses and the Class B Stock reflected the performance of the
Company’s former Closed Block Business. Earnings per share were calculated separately for each of these two classes of common stock
and included a direct equity adjustment to modify the earnings available to each of the classes of common stock for the difference between
the allocation of general and administrative expenses to each of the businesses and the cash flows between the businesses related to these
expenses. Accordingly, earnings per share of Common Stock presented below for the years ended December 31, 2014 and 2013, reflect
earnings attributable to the former Financial Services Businesses.
162 Prudential Financial, Inc. 2015 Annual Report