Prudential 2015 Annual Report Download - page 227

PRUDENTIAL FINANCIAL, INC.
Notes to Consolidated Financial Statements
also possible that in certain cases an ultimate unfavorable resolution of one or more pending litigation or regulatory matters could have a
material adverse effect on the Company’s financial position. Management believes, however, that, based on information currently known to
it, the ultimate outcome of all pending litigation and regulatory matters, after consideration of applicable reserves and rights to
indemnification, is not likely to have a material adverse effect on the Company’s financial position.
24. QUARTERLY RESULTS OF OPERATIONS (UNAUDITED)
The unaudited quarterly results of operations for the years ended December 31, 2015 and 2014 are summarized in the table below:
Three Months Ended
March 31 June 30 September 30 December 31
(in millions, except per share amounts)
2015
Total revenues .................................................................. $15,552 $13,712 $13,599 $14,256
Total benefits and expenses ........................................................ 12,804 11,583 11,550 13,413
Income (loss) from continuing operations ............................................. 2,046 1,459 1,467 740
Income (loss) from discontinued operations ........................................... 0 0 0 0
Net income (loss) ................................................................ 2,046 1,459 1,467 740
Less: Income attributable to noncontrolling interests .................................... 10 53 2 5
Net income (loss) attributable to Prudential Financial, Inc. ............................... 2,036 1,406 1,465 735
Basic earnings per share—Common Stock(1)(2):
Income (loss) from continuing operations attributable to Prudential Financial, Inc. ........ $ 4.44 $ 3.07 $ 3.22 $ 1.62
Income (loss) from discontinued operations, net of taxes ............................. 0.00 0.00 0.00 0.00
Net income (loss) attributable to Prudential Financial, Inc. ........................... $ 4.44 $ 3.07 $ 3.22 $ 1.62
Diluted earnings per share—Common Stock(1)(2):
Income (loss) from continuing operations attributable to Prudential Financial, Inc. ........ $ 4.37 $ 3.03 $ 3.16 $ 1.60
Income (loss) from discontinued operations, net of taxes ............................. 0.00 0.00 0.00 0.00
Net income (loss) attributable to Prudential Financial, Inc. ........................... $ 4.37 $ 3.03 $ 3.16 $ 1.60
2014
Total revenues .................................................................. $12,854 $13,146 $12,380 $15,725
Total benefits and expenses ........................................................ 11,136 11,639 12,096 17,475
Income (loss) from continuing operations ............................................. 1,245 1,109 523 (1,451)
Income (loss) from discontinued operations ........................................... 4 4 0 4
Net income (loss) ................................................................ 1,249 1,113 523 (1,447)
Less: Income attributable to noncontrolling interests .................................... 11 23 11 12
Net income (loss) attributable to Prudential Financial, Inc. ............................... 1,238 1,090 512 (1,459)
Basic earnings per share—Common Stock(1)(2):
Income (loss) from continuing operations attributable to Prudential Financial, Inc. ........ $ 2.62 $ 2.25 $ 1.00 $ (2.70)
Income (loss) from discontinued operations, net of taxes ............................. 0.01 0.01 0.00 0.01
Net income (loss) attributable to Prudential Financial, Inc. ........................... $ 2.63 $ 2.26 $ 1.00 $ (2.69)
Diluted earnings per share—Common Stock(1)(2):
Income (loss) from continuing operations attributable to Prudential Financial, Inc. ........ $ 2.58 $ 2.21 $ 0.99 $ (2.70)
Income (loss) from discontinued operations, net of taxes ............................. 0.01 0.01 0.00 0.01
Net income (loss) attributable to Prudential Financial, Inc. ........................... $ 2.59 $ 2.22 $ 0.99 $ (2.69)
(1) Quarterly earnings per share amounts may not add to the full year amounts due to the averaging of shares.
(2) For 2015, represents consolidated earnings per share of Common Stock. For 2014, represents earnings of the Company’s former Financial Services
Businesses per share of Common Stock. See Note 16 for additional information.
Results for the third quarter of 2014 include total pre-tax out of period adjustments of $156 million which primarily consisted of: 1) a
charge of $48 million from an increase in reserves for group long-term disability products and 2) a charge of $45 million from an increase
in reserves, net of related amortization of DAC, for certain variable annuities products with optional living benefit guarantees. These items
were identified during the Company’s annual review and update of assumptions used in calculating these reserves. Subsequent to the third
quarter of 2014, the Company identified and recorded additional out of period adjustments of $127 million that related to the third quarter
of 2014, primarily reflecting a benefit from the release of reserves for certain variable annuities products with optional living benefit
guarantees.
25. SUBSEQUENT EVENTS
Common Stock Dividend Declaration
On February 9, 2016, Prudential Financial’s Board of Directors declared a cash dividend of $0.70 per share of Common Stock,
payable on March 17, 2016.
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