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Equity | 3 Months Ended
--- | ---
Mar. 31, 2021
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, 2020 | 666.3 |  |  | 269.9 |  |  | 396.4 |  |  |
Common Stock issued | 0.0 |  |  | 0.0 |  |  | 0.0 |  |  |
Common Stock acquired | 0.0 |  |  | 4.3 |  |  | (4.3) |  |  |
Stock-based compensation programs(1) | 0.0 |  |  | (2.2) |  |  | 2.2 |  |  |
Balance, March 31, 2021 | 666.3 |  |  | 272.0 |  |  | 394.3 |  |  |
__________ (1)Represents net shares issued from treasury pursuant to the Company’s stock-based compensation programs. In February 2021, Prudential Financial’s Board of Directors (the “Board”) authorized the Company to repurchase at management’s discretion up to $1.5 billion of its outstanding Common Stock during the period from January 1, 2021 through December 31, 2021. On May 4, 2021, the Board increased the Company’s current share repurchase authorization by $500 million, bringing the aggregate share repurchase authorization for calendar year 2021 to $2.0 billion. As of March 31, 2021, 4.3 million shares of the Company’s Common Stock were repurchased under this authorization at a total cost of $375 million. The timing and amount of share repurchases are determined by management based upon market conditions and other considerations, and repurchases may be executed 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, but not limited to: compliance with laws, 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. Dividends declared per share of Common Stock are as follows for the periods indicated:
|  |  | Three Months Ended March 31,
|  |  |  |  | 2021 |  | 2020
Dividends declared per share of Common Stock |  |  |  |  | $ | 1.15 |  |  | $ | 1.10 |
Accumulated Other Comprehensive Income (Loss) AOCI represents the cumulative OCI items that are reported separate from net income and detailed on the Unaudited Interim Consolidated Statements of Comprehensive Income. The balance of and changes in each component of AOCI as of and for the three months ended March 31, 2021 and 2020, 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, 2020 | $ | 52 |  |  | $ | 34,065 |  |  | $ | (3,379) |  |  | $ | 30,738 |
Change in OCI before reclassifications | (660) |  |  | (12,762) |  |  | 29 |  |  | (13,393) |
Amounts reclassified from AOCI | (3) |  |  | (1,366) |  |  | 67 |  |  | (1,302) |
Income tax benefit (expense) | (54) |  |  | 3,254 |  |  | (24) |  |  | 3,176 |
Balance, March 31, 2021 | $ | (665) |  |  | $ | 23,191 |  |  | $ | (3,307) |  |  | $ | 19,219 |
| 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, 2019 | $ | (536) |  |  | $ | 28,112 |  |  | $ | (3,537) |  |  | $ | 24,039 |
Change in OCI before reclassifications | (298) |  |  | (808) |  |  | 2 |  |  | (1,104) |
Amounts reclassified from AOCI | 3 |  |  | (546) |  |  | 70 |  |  | (473) |
Income tax benefit (expense) | (25) |  |  | 179 |  |  | (16) |  |  | 138 |
Balance, March 31, 2020 | $ | (856) |  |  | $ | 26,937 |  |  | $ | (3,481) |  |  | $ | 22,600 |
__________ (1)Includes cash flow hedges of $(159) million and $(168) million as of March 31, 2021 and December 31, 2020, respectively, and $3,186 million and $832 million as of March 31, 2020 and December 31, 2019, respectively, and fair value hedges of $12 million and $10 million as of March 31, 2021 and December 31, 2020, respectively, and $0 million and $0 million as of March 31, 2020 and December 31, 2019, respectively. Reclassifications out of Accumulated Other Comprehensive Income (Loss)
| Three Months Ended March 31, |  |  |  | Affected line item in Consolidated Statements of Operations
| 2021 |  | 2020 |  |  |  |  |
| (in millions) |  |
Amounts reclassified from AOCI(1)(2): |  |  |  |  |  |  |  |  |
Foreign currency translation adjustment: |  |  |  |  |  |  |  |  |
Foreign currency translation adjustments | $ | 0 |  |  | $ | (3) |  |  |  |  |  |  | Realized investment gains (losses), net
Foreign currency translation adjustments | 3 |  |  | 0 |  |  |  |  |  |  | Other income (loss)
Total foreign currency translation adjustment | 3 |  |  | (3) |  |  |  |  |  |  |
Net unrealized investment gains (losses): |  |  |  |  |  |  |  |  |
Cash flow hedges—Interest rate | 5 |  |  | (1) |  |  |  |  |  |  | (3)
Cash flow hedges—Currency | (1) |  |  | 1 |  |  |  |  |  |  | (3)
Cash flow hedges—Currency/Interest rate | 148 |  |  | 388 |  |  |  |  |  |  | (3)
Fair value hedges—Currency | (2) |  |  | 0 |  |  |  |  |  |  | (3)
Net unrealized investment gains (losses) on available-for-sale securities | 1,216 |  |  | 158 |  |  |  |  |  |  | Realized investment gains (losses), net
Total net unrealized investment gains (losses) | 1,366 |  |  | 546 |  |  |  |  |  |  | (4)
Amortization of defined benefit pension items: |  |  |  |  |  |  |  |  |
Prior service cost | (1) |  |  | (1) |  |  |  |  |  |  | (5)
Actuarial gain (loss) | (66) |  |  | (69) |  |  |  |  |  |  | (5)
Total amortization of defined benefit pension items | (67) |  |  | (70) |  |  |  |  |  |  |
Total reclassifications for the period | $ | 1,302 |  |  | $ | 473 |  |  |  |  |  |  |
__________ (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 5 for additional information on cash flow and fair value 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 available-for-sale fixed maturity securities and certain other invested assets 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 (loss)” 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 net unrealized investment gains (losses) on available-for-sale fixed maturity securities on which an allowance for credit losses has been recognized, and all other net unrealized investment gains (losses), are as follows:
| Net Unrealized Investment Gains (Losses) on Available-for-Sale Fixed Maturity Securities on which an allowance for credit losses has been recognized |  | Net Unrealized Gains (Losses) on All Other 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, 2020 | $ | (25) |  |  | $ | 58,442 |  |  | $ | (1,229) |  |  | $ | (6,588) |  |  | $ | (5,892) |  |  | $ | (10,643) |  |  | $ | 34,065 |
Net investment gains (losses) on investments arising during the period | 13 |  |  | (19,615) |  |  |  |  |  |  |  |  | 4,404 |  |  | (15,198) |
Reclassification adjustment for (gains) losses included in net income | 10 |  |  | (1,376) |  |  |  |  |  |  |  |  | 307 |  |  | (1,059) |
Reclassification due to allowance for credit losses recorded during period | (3) |  |  | 3 |  |  |  |  |  |  |  |  | 0 |  |  | 0 |
Impact of net unrealized investment (gains) losses on DAC, DSI, VOBA and reinsurance recoverables |  |  |  |  | 338 |  |  |  |  |  |  | (84) |  |  | 254 |
Impact of net unrealized investment (gains) losses on future policy benefits, policyholders’ account balances and reinsurance payables |  |  |  |  |  |  | 3,874 |  |  |  |  | (821) |  |  | 3,053 |
Impact of net unrealized investment (gains) losses on policyholders’ dividends |  |  |  |  |  |  |  |  | 2,628 |  |  | (552) |  |  | 2,076 |
Balance, March 31, 2021 | $ | (5) |  |  | $ | 37,454 |  |  | $ | (891) |  |  | $ | (2,714) |  |  | $ | (3,264) |  |  | $ | (7,389) |  |  | $ | 23,191 |
__________ (1)Includes cash flow and fair value hedges. See Note 5 for information on cash flow and fair value hedges.

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- Definition The entire disclosure for shareholders' equity comprised of portions attributable to the parent entity and noncontrolling interest, including other comprehensive income. Includes, but is not limited to, balances of common stock, preferred stock, additional paid-in capital, other capital and retained earnings, accumulated balance for each classification of other comprehensive income and amount of comprehensive income. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08(e)(1)) -URI http://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.3-04) -URI http://asc.fasb.org/extlink&oid=120397183&loc=d3e187085-122770 Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -URI http://asc.fasb.org/topic&trid=2208762 + Details
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