Earnings Per Share

12 Months Ended

Dec. 31, 2022

EARNINGS PER SHARE

A reconciliation of the numerators and denominators of the basic and diluted per share computations of Common Stock based on the consolidated earnings of Prudential Financial for the years ended December 31, is as follows:


	2022					2021					2020
	Income		Weighted Average Shares	Per Share Amount		Income		Weighted Average Shares	Per Share Amount		Income		Weighted Average Shares	Per Share Amount
	(in millions, except per share amounts)
Basic earnings per share
Net income (loss)	$	(1,462)				$	7,794				$	(146)
Less: Income (loss) attributable to noncontrolling interests	(24)					70					228
Less: Dividends and undistributed earnings allocated to participating unvested share-based payment awards	25					115					21
Net income (loss) attributable to Prudential Financial available to holders of Common Stock	$	(1,463)	372.3	$	(3.93)	$	7,609	387.2	$	19.65	$	(395)	395.8	$	(1.00)
Effect of dilutive securities and compensation programs
Add: Dividends and undistributed earnings allocated to participating unvested share-based payment awards—Basic	$	25				$	115				$	21
Less: Dividends and undistributed earnings allocated to participating unvested share-based payment awards—Diluted	25					115					21
Stock options			0.0					0.7					0.0
Deferred and long-term compensation programs			0.0					2.2					0.0

Diluted earnings per share(1)
Net income (loss) attributable to Prudential Financial available to holders of Common Stock	$	(1,463)	372.3	$	(3.93)	$	7,609	390.1	$	19.51	$	(395)	395.8	$	(1.00)

Unvested share-based payment awards that contain nonforfeitable rights to dividends are participating securities and included in the computation of earnings per share pursuant to the two-class method. Under this method, earnings attributable to Prudential Financial are allocated between Common Stock and the participating awards, as if the awards were a second class of stock. During periods of net income available to holders of Common Stock, the calculation of earnings per share excludes the income attributable to participating securities in the numerator and the dilutive impact of these securities from the denominator. In the event of a net loss available to holders of Common Stock, undistributed earnings are not allocated to participating securities and the denominator excludes the dilutive impact of these securities as they do not share in the losses of the Company. Undistributed earnings allocated to participating unvested share-based payment awards for the years ended December 31, 2022, 2021 and 2020, as applicable, were based on 4.9 million, 5.8 million and 4.9 million of such awards, respectively, weighted for the period they were outstanding.

Stock options and shares related to deferred and long-term compensation programs that are considered antidilutive are excluded from the computation of diluted earnings per share. Stock options are considered antidilutive based on application of the treasury stock method or in the event of a net loss available to holders of Common Stock. Shares related to deferred and long-term compensation programs are considered antidilutive in the event of a net loss available to holders of Common Stock. For the years ended December 31, the number of stock options and shares related to deferred and long-term compensation programs that were considered antidilutive and were excluded from the computation of diluted earnings per share, weighted for the portion of the period they were outstanding, are as follows:


	2022			2021			2020
	Shares	Exercise Price Per Share		Shares	Exercise Price Per Share		Shares	Exercise Price Per Share
	(in millions, except per share amounts, based on weighted average)
Antidilutive stock options based on application of the treasury stock method	0.5	$	108.19	1.0	$	102.54	3.3	$	82.06
Antidilutive stock options due to net loss available to holders of Common Stock	0.4			0.0			0.4
Antidilutive shares based on application of the treasury stock method	0.1			0.0			0.2
Antidilutive shares due to net loss available to holders of Common Stock	2.0			0.0			1.6
Total antidilutive stock options and shares	3.0			1.0			5.5