v3.8.0.1
Share-Based Payments (Tables)
 12 Months Ended
Dec. 31, 2017
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]  
Schedule of Share Based Payment Award Stock Options Valuation Assumptions
The weighted average grant date assumptions used in the binomial option valuation model are as follows:
 
 
2017
 
2016
 
2015
Expected volatility
 
35.29
%
 
38.36
%
 
34.67
%
Expected dividend yield
 
2.84
%
 
3.92
%
 
3.00
%
Expected term
 
5.60 years

 
5.61 years

 
5.57 years

Risk-free interest rate
 
2.06
%
 
1.25
%
 
1.61
%
Schedule of Compensation Cost for Share-based Payment Arrangements, Allocation of Share-based Compensation Costs by Plan
The following chart summarizes the compensation cost recognized and the related income tax benefit for stock options, restricted stock units, performance shares and performance units for the years ended December 31: 
 
 
2017
 
2016
 
2015
 
 
Total
Compensation Cost
Recognized
 
Income Tax
Benefit
 
Total
Compensation Cost
Recognized
 
Income Tax
Benefit
 
Total
Compensation Cost
Recognized
 
Income Tax
Benefit
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(in millions)
Employee stock options
 
$
12

 
$
5

 
$
19

 
$
7

 
$
21

 
$
8

Employee restricted stock units
 
142

 
51

 
126

 
47

 
111

 
42

Employee performance shares and performance units
 
109

 
41

 
57

 
21

 
32

 
12

Total
 
$
263

 
$
97

 
$
202

 
$
75

 
$
164

 
$
62
Schedule of Share Based Compensation Stock Options Activity
The weighted average remaining contractual term and the aggregate intrinsic value of stock options outstanding and exercisable as of December 31, 2017 is as follows:
 
 
 
December 31, 2017
 
 
Employee Stock Options
 
 
Weighted Average
Remaining
Contractual Term
 
Aggregate
Intrinsic Value
 
 
(in years)
 
(in millions)
Outstanding
 
5.56
 
$
225

Exercisable
 
4.51
 
$
172

A summary of the status of the Company’s stock option grants is as follows:
 
 
 
Employee Stock Options
 
 
Shares
 
Weighted Average
Exercise Price
Outstanding at December 31, 2016
 
6,738,802

 
$
63.53

Granted
 
410,501

 
110.15

Exercised
 
(2,385,170
)
 
63.80

Forfeited
 
(28,910
)
 
69.23

Expired
 
(5,821
)
 
83.29

Outstanding at December 31, 2017
 
4,729,402

 
$
67.38

Exercisable at December 31, 2017
 
3,248,670

 
$
61.91
Schedule of Nonvested Share Activity
A summary of the Company’s restricted stock units, performance shares and performance unit awards is as follows:
 
 
 
Restricted
Stock
Units
 
Weighted
Average Grant
Date Fair Value
 
Performance
Share and
Performance
Unit Awards(1)
 
Weighted
Average Grant
Date Fair Value
Restricted at December 31, 2016(2)
 
4,979,707

 
$
73.77

 
1,663,673

 
$
104.06

Granted(2)
 
1,540,848

 
110.39

 
601,179

 
114.98

Forfeited
 
(125,209
)
 
83.34

 
(9,610
)
 
109.21

Performance adjustment(3)
 
 
 
 
 
105,829

 
110.45

Released
 
(1,253,305
)
 
84.08

 
(540,739
)
 
110.45

Restricted at December 31, 2017(2)
 
5,142,041

 
$
82.00

 
1,820,332

 
$
114.98

__________
(1)
Performance share and performance unit awards reflect the target units awarded, reduced for forfeitures and releases to date. The actual number of units to be awarded at the end of each performance period will range between 0% and 125% of the target number of units granted, based upon a measure of the reported performance for the Company relative to stated goals.
(2)
For performance share and performance unit awards, the grant date is the same as the date the grant vests. The features of the grant are such that a mutual understanding of the key terms and conditions of the award between the employee and employer have not been reached until the grant is vested. Consequently, the weighted average grant date fair value as of December 31, 2017 and December 31, 2016 is the closing stock price of Prudential Financial’s common stock on those dates.
(3)
Represents the difference between the target units granted and the actual units awarded based upon the attainment of performance goals for the Company.