Earnings Per Share (Tables)

9 Months Ended

Sep. 30, 2023

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 periods indicated is as follows:


	Three Months Ended September 30,
	2023					2022
	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)	$	(791)				$	(108)
Less: Income (loss) attributable to noncontrolling interests	11					(16)
Less: Dividends and undistributed earnings allocated to participating unvested share-based payment awards	5					6
Net income (loss) attributable to Prudential Financial available to holders of Common Stock	$	(807)	362.6	$	(2.23)	$	(98)	371.0	$	(0.26)
Effect of dilutive securities and compensation programs
Add: Dividends and undistributed earnings allocated to participating unvested share-based payment awards—Basic	$	5				$	6
Less: Dividends and undistributed earnings allocated to participating unvested share-based payment awards—Diluted	5					6
Stock options			0.0					0.0
Deferred and long-term compensation programs			0.0					0.0
Diluted earnings per share(1)
Net income (loss) attributable to Prudential Financial available to holders of Common Stock	$	(807)	362.6	$	(2.23)	$	(98)	371.0	$	(0.26)

__________

(1)For the three months ended September 30, 2023 and 2022, weighted average shares for basic earnings per share is also used for calculating diluted earnings per share because dilutive shares and dilutive earnings per share are not applicable when a net loss is reported. As a result of the net loss attributable to Prudential Financial available to holders of Common Stock for the three months ended September 30, 2023 and 2022, all potential stock options and compensation programs were considered antidilutive.


	Nine Months Ended September 30,
	2023					2022
	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)	$	1,182				$	(1,631)
Less: Income (loss) attributable to noncontrolling interests	11					(36)
Less: Dividends and undistributed earnings allocated to participating unvested share-based payment awards	17					19
Net income (loss) attributable to Prudential Financial available to holders of Common Stock	$	1,154	364.6	$	3.17	$	(1,614)	373.8	$	(4.32)
Effect of dilutive securities and compensation programs
Add: Dividends and undistributed earnings allocated to participating unvested share-based payment awards—Basic	$	17				$	19
Less: Dividends and undistributed earnings allocated to participating unvested share-based payment awards—Diluted	17					19
Stock options			0.2					0.0
Deferred and long-term compensation programs			1.0					0.0
Diluted earnings per share(1)
Net income (loss) attributable to Prudential Financial available to holders of Common Stock	$	1,154	365.8	$	3.15	$	(1,614)	373.8	$	(4.32)

__________

(1)For the nine months ended September 30, 2022, weighted average shares for basic earnings per share is also used for calculating diluted earnings per share because dilutive shares and dilutive earnings per share are not applicable when a net loss is reported. As a result of the net loss attributable to Prudential Financial available to holders of Common Stock for the nine months ended September 30, 2022, all potential stock options and compensation programs were considered antidilutive.

Earnings Per Share Computation

For the periods indicated, 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:


	Three Months Ended September 30,
	2023			2022
	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	1.1	$	103.19	$	0.7	$	107.30
Antidilutive stock options due to net loss available to holders of Common Stock	0.1			0.3
Antidilutive shares based on application of the treasury stock method	0.0			0.0
Antidilutive shares due to net loss available to holders of Common Stock	1.1			1.8
Total antidilutive stock options and shares	2.3			2.8


	Nine Months Ended September 30,
	2023			2022
	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	1.3	$	101.72	$	0.5	$	107.95
Antidilutive stock options due to net loss available to holders of Common Stock	0.0			0.5
Antidilutive shares based on application of the treasury stock method	0.1			0.1
Antidilutive shares due to net loss available to holders of Common Stock	0.0			2.1
Total antidilutive stock options and shares	1.4			3.2