Short-Term and Long-Term Debt (Tables)
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12 Months Ended |
Dec. 31, 2017 |
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| Debt Disclosure [Abstract] |
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| Short-term Debt |
The table below presents the Company’s short-term debt at December 31, for the years indicated as follows:
| | | | | | | | | | 2017 | | 2016 | | ($ in millions) | Commercial paper: | | | | Prudential Financial | $ | 50 |
| | $ | 65 |
| Prudential Funding, LLC | 500 |
| | 525 |
| Subtotal commercial paper | 550 |
| | 590 |
| Current portion of long-term debt | 830 |
| | 543 |
| Total short-term debt(1) | $ | 1,380 |
| | $ | 1,133 |
| Supplemental short-term debt information: | | | | Portion of commercial paper borrowings due overnight | $ | 277 |
| | $ | 292 |
| Daily average commercial paper outstanding | $ | 1,110 |
| | $ | 1,020 |
| Weighted average maturity of outstanding commercial paper, in days | 22 |
| | 21 |
| Weighted average interest rate on outstanding short-term debt(2) | 0.99 | % | | 0.43 | % |
__________ | | (1) | Includes Prudential Financial debt of $880 million and $535 million at December 31, 2017 and 2016, respectively. |
| | (2) | Excludes the current portion of long-term debt. |
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| Schedule of Line of Credit Facilities |
As of December 31, 2017, the Company maintained syndicated, unsecured committed credit facilities as described below. | | | | | | | | | | | | | Borrower | Original Term | | Expiration Date | | Capacity | | Amount Outstanding | | | | | | (in millions) | Prudential Financial and Prudential Funding | 5 years | | Jul 2022 | | $ | 4,000 |
| | $ | 0 |
| Prudential Holdings of Japan, Inc. | 3 years | | Sep 2019 | | ¥ | 100,000 |
| | ¥ | 0 |
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| Schedule of Long-term Debt Instruments |
| | | | | | | | | | | | | | Maturity Dates | | Rate(1) | | December 31, | 2017 | | 2016 | | | | | | ($ in millions) | Fixed-rate notes: | | | | | | | | Surplus notes | 2019-2025 | | 5.36%-8.30% | | $ | 840 |
| | $ | 840 |
| Surplus notes subject to set-off arrangements | 2021-2037 | | 3.52%-5.26% | | 5,187 |
| | 4,403 |
| Senior notes | 2018-2049 | | 2.30%-11.31% | | 8,882 |
| | 9,236 |
| Mortgage debt(2) | 2019-2027 | | 0.89%-3.85% | | 226 |
| | 177 |
| Floating-rate notes: | | | | | | | | Surplus notes |
| | - | | 0 |
| | 499 |
| Surplus notes subject to set-off arrangements | 2024-2037 | | 2.25%-2.74% | | 2,100 |
| | 1,456 |
| Senior notes(3) | 2020 | | 1.69%-5.49% | | 29 |
| | 1,063 |
| Mortgage debt(4) | 2019-2025 | | 0.26%-4.07% | | 573 |
| | 409 |
| Junior subordinated notes(5) | 2042-2068 | | 4.50%-8.88% | | 6,622 |
| | 5,817 |
| Subtotal | | | | | 24,459 |
| | 23,900 |
| Less: assets under set-off arrangements(6) | | | | | 7,287 |
| | 5,859 |
| Total long-term debt(7) | | | | | $ | 17,172 |
| | $ | 18,041 |
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__________ | | (1) | Ranges of interest rates are for the year ended December 31, 2017. |
| | (2) | Includes $107 million and $82 million of debt denominated in foreign currency at December 31, 2017 and 2016, respectively. |
| | (3) | Includes $0 million and $55 million of debt denominated in foreign currency at December 31, 2017 and 2016, respectively. |
| | (4) | Includes $245 million and $221 million of debt denominated in foreign currency at December 31, 2017 and 2016, respectively. |
| | (5) | Includes Prudential Financial debt of $6,566 million and subsidiary debt of $56 million denominated in foreign currency at December 31, 2017. |
| | (6) | Assets under set-off arrangements represent a reduction in the amount of surplus notes included in long-term debt, resulting from an arrangement where valid rights of set-off exist and it is the intent of both parties to settle on a net basis under legally enforceable arrangements. These assets include available-for-sale securities that are valued at market. |
| | (7) | Includes Prudential Financial debt of $15,304 million and $15,389 million at December 31, 2017 and 2016, respectively |
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| Schedule of Maturities of Long-term Debt |
The following table presents the contractual maturities of the Company’s long-term debt as of December 31, 2017: | | | | | | | | | | | | | | | | | | | | | | | | | | Calendar Year | | | | 2019 | | 2020 | | 2021 | | 2022 | | 2023 and thereafter | | Total | | (in millions) | Long-term debt | $ | 1,713 |
| | $ | 1,298 |
| | $ | 564 |
| | $ | 73 |
| | $ | 13,524 |
| | $ | 17,172 |
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| Junior Subordinated Notes |
notes outstanding, along with their key terms, are as follows: | | | | | | | | | | | | | | | | | | Issue Date | Principal Amount | | Initial Interest Rate | | Investor Type | | Optional Redemption Date (1) | | Interest Rate Subsequent to Optional Redemption Date | | Scheduled Maturity Date | | Final Maturity Date | | ($ in millions) | | | | | | | | | | | | | June 2008 | $ | 600 |
| | 8.88 | % | | Institutional | | 6/15/2018 | | LIBOR + 5.00% | | 6/15/2038 | | 6/15/2068 | August 2012 | $ | 1,000 |
| | 5.88 | % | | Institutional | | 9/15/2022 | | LIBOR + 4.18% | | n/a | | 9/15/2042 | November 2012 | $ | 1,500 |
| | 5.63 | % | | Institutional | | 6/15/2023 | | LIBOR + 3.92% | | n/a | | 6/15/2043 | December 2012 | $ | 575 |
| | 5.75 | % | | Retail | | 12/4/2017 | | 5.75% | | n/a | | 12/15/2052 | March 2013 | $ | 710 |
| | 5.70 | % | | Retail | | 3/15/2018 | | 5.70% | | n/a | | 3/15/2053 | March 2013 | $ | 500 |
| | 5.20 | % | | Institutional | | 3/15/2024 | | LIBOR + 3.04% | | n/a | | 3/15/2044 | May 2015 | $ | 1,000 |
| | 5.38 | % | | Institutional | | 5/15/2025 | | LIBOR + 3.03% | | n/a | | 3/15/2045 | September 2017 | $ | 750 |
| | 4.50 | % | | Institutional | | 9/15/2027 | | LIBOR + 2.38% | | n/a | | 9/15/2047 |
__________ | | (1) | Represents the initial date on which the notes can be redeemed at par solely at the option of the Company, in the case of the 8.88% notes subject to compliance with a replacement capital covenant. |
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