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Equity
 6 Months Ended
Jun. 30, 2017
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, 2016
660.1

 
230.5

 
429.6

Common Stock issued
0.0

 
0.0

 
0.0

Common Stock acquired
0.0

 
5.8

 
(5.8
)
Stock-based compensation programs(1)
0.0

 
(3.2
)
 
3.2

Balance, June 30, 2017
660.1

 
233.1

 
427.0

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

In December 2016, Prudential Financial’s Board of Directors authorized the Company to repurchase at management’s discretion up to $1.25 billion of its outstanding Common Stock during the period from January 1, 2017 through December 31, 2017. As of June 30, 2017, 5.8 million shares of the Company’s Common Stock were repurchased under this authorization at a total cost of $625 million.

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.

Class B Stock
  
From December 18, 2001, the date of demutualization, through December 31, 2014, the Company organized its principal operations into the Financial Services Businesses and the Closed Block Business, and had two classes of common stock outstanding. The Common Stock, which is publicly traded (NYSE: PRU), reflected the performance of the Financial Services Businesses, while the Class B Stock, which was issued through a private placement and did not trade on any exchange, reflected the performance of the Closed Block Business.

On January 2, 2015, pursuant to a Share Repurchase Agreement entered into on December 1, 2014, between the Company and the holders of the Class B Stock, the Company repurchased and canceled all of the shares of the Class B Stock for an aggregate cash purchase price of $651 million, resulting in the elimination of the Class B Stock held in treasury, a $484 million decrease in “Retained earnings” and a $167 million decrease in “Additional paid-in capital.”

In accordance with the terms of the Share Repurchase Agreement, the holders of the Class B Stock subsequently exercised their right to dispute the calculation of the purchase price. This dispute was resolved during the first quarter of 2016, resulting in an increase to the cash purchase price of $119 million, bringing the total aggregate purchase price to $770 million. The increase to the cash purchase price resulted in a corresponding decrease in “Retained earnings.”
Accumulated Other Comprehensive Income (Loss)
 
The balance of and changes in each component of “Accumulated other comprehensive income (loss) attributable to Prudential Financial, Inc.” for the six months ended June 30, 2017 and 2016, 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, 2016
$
(973
)
 
$
18,171

 
$
(2,577
)
 
$
14,621

Change in OCI before reclassifications
614

 
2,502

 
(13
)
 
3,103

Amounts reclassified from AOCI
2

 
(820
)
 
112

 
(706
)
Income tax benefit (expense)
(77
)
 
(544
)
 
(35
)
 
(656
)
Balance, June 30, 2017
$
(434
)
 
$
19,309

 
$
(2,513
)
 
$
16,362


 
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, 2015
$
(1,087
)
 
$
15,773

 
$
(2,401
)
 
$
12,285

Change in OCI before reclassifications
1,272

 
17,958

 
(34
)
 
19,196

Amounts reclassified from AOCI
8

 
(638
)
 
107

 
(523
)
Income tax benefit (expense)
(294
)
 
(5,972
)
 
(25
)
 
(6,291
)
Balance, June 30, 2016
$
(101
)
 
$
27,121

 
$
(2,353
)
 
$
24,667

__________
(1)
Includes cash flow hedges of $780 million and $1,316 million as of June 30, 2017 and December 31, 2016, respectively, and $1,298 million and $1,165 million as of June 30, 2016 and December 31, 2015, respectively.
 
Reclassifications out of Accumulated Other Comprehensive Income (Loss)

 
Three Months Ended
June 30,
 
Six Months Ended
June 30,
 
Affected line item in Consolidated Statements of Operations
 
2017
 
2016
 
2017
 
2016
 
 
(in millions)
 
 
Amounts reclassified from AOCI(1)(2):
 
 
 
 
 
 
 
 
 
Foreign currency translation adjustment:
 
 
 
 
 
 
 
 
 
Foreign currency translation adjustments
$
(2
)
 
$
(2
)
 
$
(3
)
 
$
(8
)
 
Realized investment gains (losses), net
Foreign currency translation adjustments
1

 
0

 
1

 
0

 
Other income
Total foreign currency translation adjustment
(1
)
 
(2
)
 
(2
)
 
(8
)
 
 
Net unrealized investment gains (losses):
 
 
 
 
 
 
 
 
 
Cash flow hedges—Interest rate
(1
)
 
(2
)
 
(2
)
 
(3
)
 
(3)
Cash flow hedges—Currency/Interest rate
(62
)
 
160

 
(1
)
 
182

 
(3)
Net unrealized investment gains (losses) on available-for-sale securities
393

 
504

 
823

 
459

 
 
Total net unrealized investment gains (losses)
330

 
662

 
820

 
638

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

 
2

 
2

 
4

 
(5)
Actuarial gain (loss)
(57
)
 
(56
)
 
(114
)
 
(111
)
 
(5)
Total amortization of defined benefit pension items
(56
)
 
(54
)
 
(112
)
 
(107
)
 
 
Total reclassifications for the period
$
273

 
$
606

 
$
706

 
$
523

 
 
__________
(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 14 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 securities classified as available-for-sale and certain other long-term investments 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” 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 fixed maturity securities on which an OTTI loss has been recognized, and all other net unrealized investment gains (losses), are as follows:
 
Net Unrealized Investment Gains (Losses) on Fixed Maturity Securities on which an OTTI loss 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, 2016
$
312

 
$
(5
)
 
$
(6
)
 
$
(47
)
 
$
(97
)
 
$
157

Net investment gains (losses) on investments arising during the period
50

 
 
 
 
 
 
 
(17
)
 
33

Reclassification adjustment for (gains) losses included in net income
(63
)
 
 
 
 
 
 
 
21

 
(42
)
Reclassification adjustment for OTTI losses excluded from net income(1)
(18
)
 
 
 
 
 
 
 
6

 
(12
)
Impact of net unrealized investment (gains) losses on DAC, DSI, VOBA and reinsurance recoverables
 
 
3

 
 
 
 
 
(1
)
 
2

Impact of net unrealized investment (gains) losses on future policy benefits and policyholders’ account balances and reinsurance payables
 
 
 
 
10

 
 
 
(4
)
 
6

Impact of net unrealized investment (gains) losses on policyholders’ dividends
 
 
 
 
 
 
(7
)
 
2

 
(5
)
Balance, June 30, 2017
$
281

 
$
(2
)
 
$
4

 
$
(54
)
 
$
(90
)
 
$
139

__________
(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, 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, 2016
$
32,420

 
$
(1,056
)
 
$
(1,136
)
 
$
(2,980
)
 
$
(9,234
)
 
$
18,014

Net investment gains (losses) on investments arising during the period
3,467

 
 
 
 
 
 
 
(1,155
)
 
2,312

Reclassification adjustment for (gains) losses included in net income
(757
)
 
 
 
 
 
 
 
252

 
(505
)
Reclassification adjustment for OTTI losses excluded from net income(2)
18

 
 
 
 
 
 
 
(6
)
 
12

Impact of net unrealized investment (gains) losses on DAC, DSI, VOBA and reinsurance recoverables
 
 
(337
)
 
 
 
 
 
119

 
(218
)
Impact of net unrealized investment (gains) losses on future policy benefits and policyholders’ account balances and reinsurance payables
 
 
 
 
(213
)
 
 
 
75

 
(138
)
Impact of net unrealized investment (gains) losses on policyholders’ dividends
 
 
 
 
 
 
(471
)
 
164

 
(307
)
Balance, June 30, 2017
$
35,148

 
$
(1,393
)
 
$
(1,349
)
 
$
(3,451
)
 
$
(9,785
)
 
$
19,170

__________
(1)
Includes cash flow hedges. See Note 14 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.