prudentialfinancial,inc.d18rn0p25nwr6d.cloudfront.net/cik-0001137774/314a0b0d-55f8-4f4b-a99a-75cd141d74d6.pdfpositioning...

UNITEDSTATESSECURITIESANDEXCHANGECOMMISSION

Washington,D.C.20549

FORM8-K

CURRENTREPORTPursuanttoSection13or15(d)

oftheSecuritiesExchangeActof1934

DateofReport(Dateofearliesteventreported):December6,2018

PRUDENTIALFINANCIAL,INC.(Exactnameofregistrantasspecifiedinitscharter)

NewJersey 001-16707 22-3703799

(Stateorotherjurisdictionofincorporation)

(CommissionFileNumber)

(I.R.S.EmployerIdentificationNo.)

751BroadStreetNewark,NewJersey07102

(Addressofprincipalexecutiveofficesandzipcode)

(973)802-6000(Registrant’stelephonenumber,includingareacode)

ChecktheappropriateboxbelowiftheForm8-Kfilingisintendedtosimultaneouslysatisfythefilingobligationoftheregistrantunderanyofthefollowingprovisions:

☐ WrittencommunicationspursuanttoRule425undertheSecuritiesAct(17CFR230.425)

☐ SolicitingmaterialpursuanttoRule14a-12undertheExchangeAct(17CFR240.14a-12)

☐ Pre-commencementcommunicationspursuanttoRule14d-2(b)undertheExchangeAct(17CFR240.14d-2(b))

☐ Pre-commencementcommunicationspursuanttoRule13e-4(c)undertheExchangeAct(17CFR240.13e-4(c))

IndicatebycheckmarkwhethertheregistrantisanemerginggrowthcompanyasdefinedinRule405oftheSecuritiesActof1933(§230.405ofthischapter)orRule12b-2oftheSecuritiesExchangeActof1934(§240.12b-2ofthischapter).

Emerginggrowthcompany☐

Ifanemerginggrowthcompany,indicatebycheckmarkiftheregistranthaselectednottousetheextendedtransitionperiodforcomplyingwithanyneworrevisedfinancialaccountingstandardsprovidedpursuanttoSection13(a)oftheExchangeAct.☐

Item7.01 RegulationFDDisclosure.

PrudentialFinancial,Inc.(the“Company”)isfurnishingacopyofslidesbeingpresentedonits2019financialoutlookconferencecalltodayasExhibit99.1.

Item8.01 OtherEvent

Today,theCompanyisannouncingthatitsBoardofDirectorshasauthorizedtherepurchaseofupto$2.0billionofitsoutstandingCommonStockduringtheperiodfromJanuary1,2019throughDecember31,2019.

ThetimingandamountofanysharerepurchasesundertheCompany’ssharerepurchaseauthorizationwillbedeterminedbymanagementbasedonmarketconditionsandotherconsiderations,andsuchrepurchasesmaybeexecutedintheopenmarket,throughderivative,acceleratedrepurchaseandothernegotiatedtransactionsandthroughplansdesignedtocomplywithRule10b5-1(c)undertheSecuritiesExchangeActof1934,asamended.

Item9.01 FinancialStatementsandExhibits.

(d)Exhibits.ExhibitNo. Description

99.1 SlidepresentationofPrudentialFinancial,Inc.onits2019financialoutlookconferencecallonDecember6,2018(furnishedandnotfiled).

SIGNATURES

PursuanttotherequirementsoftheSecuritiesExchangeActof1934,theRegistranthasdulycausedthisreporttobesignedonitsbehalfbytheundersignedhereuntodulyauthorized.

Date:December6,2018

PRUDENTIALFINANCIAL,INC.

By:/s/AndrewHughes

Name: AndrewHughesTitle: VicePresidentandAssistantSecretary

PrudentialFinancial,Inc.2019FinancialOutlookConferenceCallPresentationDecember6,2018Exhibit99.1

2019FinancialOutlookConferenceCallUnlockingGrowthbyBringingFinancialOpportunitytoMoreCustomersDifferentiatedBusinessMixLeadingmarketpositionswithscale:U.S.FinancialWellnessWorkplaceSolutionsIndividualSolutionsInternationalPGIMComplementarymixproduces:EnhancedgrowthfromintegratedsolutionsEarningsdiversificationCapitalbenefitsSolidLong-TermTrackRecordDeliveringattractive:EarningspershareandbookvaluepersharegrowthReturnonequityCapitalgenerationInvestingforlong-termsustainablegrowthStrongFinancialProfileHighqualityanddiversifiedinvestmentportfolioDiversifiedriskprofileandwellcapitalizedSignificantbalancesheetflexibilityandcapitalcapacitytobeopportunistic

Complementaryearnings,cashflows,andcapitalbenefitswithlong-termgrowthprospects2019FinancialOutlookConferenceCallWellPositionedMixofComplementaryBusinessesDeliveringCustomerSolutionsandEnterpriseBenefitsU.S.FinancialWellnessUniquemixofhighqualityservices,products,anddistributionchannelsIntegratedsolutions:protection,retirement,andinvestmentsDeepeninglifetimeindividualandinstitutionalrelationshipsConnectingsocietalneedandmarketopportunitywithPrudential’suniquemixofcapabilitiesInternationalWorldclassJapaneseLifeInsuranceoperationBusinessesinselecthighgrowthmarketsInvestingintechnologyandadaptingproductstomarketsandevolvingcustomerneedsPGIM~$1.2trillion(1)globalassetmanagerwithdistinctivemulti-managermodelConsistentlystronginvestmentperformanceandthird-partynetflowsProvidescompetitiveadvantagestoU.S.FinancialWellnessandInternationalAssetsundermanagementasofSeptember30,2018

42019FinancialOutlookConferenceCallBusinessMixandExecutionDriveStrongFinancialPerformanceFrom2012to2017;basedonafter-taxAdjustedOperatingIncome.From2012to2017;basedonAdjustedBookValue.From2013to2017;basedonaverageAdjustedBookValueandafter-taxAdjustedOperatingIncome.RepresentsresultsofFinancialServicesBusinessesforperiodspriorto2015.From2013to2017;consistsofsharerepurchases,commonstockdividends,andM&Aactivity.Note:SeeappendixforinformationonAdjustedOperatingIncome,AdjustedBookValue,andAdjustedOperatingROE,includingreconciliations.11%5-yrEPSCAGR(1)9%5-yrAdjustedBVPSCAGR(2)14.1%5-yrAverageAdjustedOperatingROE(3)~$13billionofcapitaldeploymentoverlast5years....whileinvestinginFinancialWellness,digital,anddatagrowthandefficiencyinitiativestosupportourlong-termsustainablegrowth(4)

2019FinancialOutlookConferenceCallAchieveFinancialTargetsWhileInvestinginBusinessesandIncreasingShareholderDistributionsROEbasedonaverageAdjustedBookValueandafter-taxAdjustedOperatingIncomeexcludingnotableitems.Basedonafter-taxAdjustedOperatingIncomeonaverageovertime.Financialleverageratiorepresentscapitaldebtdividedbysumofcapitaldebtandequity.Juniorsubordinateddebttreatedas25%equity,75%capitaldebtforpurposesofcalculation.Equityincalculationexcludesnon-controllinginterest,accumulatedothercomprehensiveincome(exceptforpensionandpostretirementunrecognizedcosts),andimpactofforeigncurrencyexchangerateremeasurement.2019ExpectationsAdjustedReturnonEquity(1)Higher-endof12%-13%FreeCashFlowRatio(2)65%PICARBCRatio>375%FinancialLeverageRatio(3)<25%ParentCompanyHighlyLiquidAssets$3–$5billionShareRepurchaseAuthorization$2billion

2019FinancialOutlookConferenceCall2019EarningsPerShareGuidanceSensitivities(4)AnnualEPSImpactEquityMarket:+/-10%~$0.30EquityMarketimpactonNon-CouponInvestments:+/-10%~$0.30InterestRate:+/-100bps~$0.30*Representsaone-timeimpactfromthemark-to-marketofinvestments$12.75-$13.25AlternativeEquityMarketScenario(S&P500):GuidanceEquityMarketAssumptions(S&P500):(2)(3)~*12/31/18level:2,7002019appreciation:4%12/31/18level:2,8002019appreciation:6%3Q’18earningsadjustedforelevated4Q’18expensesatthehigh-endofhistoricalrange(1)Note:EarningspershareinformationisonanAdjustedOperatingIncomebasis.Seepage13forkeyassumptions.Seepage20fornotableitems.Notaprojectionoffullyear2018results.Excludestheimpactofmarketexperienceupdates.Includesanestimated$100millionimpacttoourassumedprivateequityreturnsfromthefourthquarter2018equitymarketdeclineasprivateequityresultsarereportedonalag.Seepage14fordetailsonsensitivities.

2019FinancialOutlookConferenceCallWellPositionedForCreditCycleStrongfinancialprofile...InvestmentPortfolioHighcreditqualityandwelldiversifiedDirectlyoriginateprivateassetsLesscyclicalindustrysectorexposureBalanceSheetFinancialleveragebetterthanourtargetedAAlevelsRobustlevelofparentcompanyhighlyliquidassetsandsourcesofcommittedfundingLowadjustedassetleverageWellhedgedforanequitymarketdownturnCapitalGenerationHighROEwithdiversifiedandstablesourcesofcashflowsFundingbusinessgrowth,investmentsincapabilities,andincreasingshareholderdistributions...toseizemarketopportunitiesSuperiorflexibilitytopursuePensionRiskTransferAcquisitionoftalentandcapabilitiesM&AIncreaseddemandforguaranteedfinancialoutcomesfromproviderswithrecognizedandtrustedbrandsAbletoinvestwithmoreattractiveexpectedreturns

2019FinancialOutlookConferenceCallUnlockingGrowthbyBringingFinancialOpportunitytoMoreCustomersDifferentiatedBusinessMixLeadingmarketpositionswithscale:U.S.FinancialWellnessWorkplaceSolutionsIndividualSolutionsInternationalPGIMComplementarymixproduces:EnhancedgrowthfromintegratedsolutionsEarningsdiversificationCapitalbenefitsSolidLong-TermTrackRecordDeliveringattractive:EarningspershareandbookvaluepersharegrowthReturnonequityCapitalgenerationInvestingforlong-termsustainablegrowthStrongFinancialProfileHighqualityanddiversifiedinvestmentportfolioDiversifiedriskprofileandwellcapitalizedSignificantbalancesheetflexibilityandcapitalcapacitytobeopportunistic

PrudentialFinancial,Inc.AppendixDecember6,2018

2019FinancialOutlookConferenceCallCompetitiveAdvantagesofOurMarketLeadingPGIMandInternationalBusinessesPGIMCompetitivePositioningDiversifiedtop10globalassetmanagerwithdistinctivemulti-managermodelBroadarrayofinvestmentmanagementandadvisoryserviceswithexpandinginternationalandretaildistributioncapabilitiesPrioritiesforGrowthMaintainstronginvestmentperformanceLeveragescaleof~$1.2trillion(1)multi-managermodelandPrudentialenterpriserelationshipsExpandglobalinvestmentanddistributionfootprintContinuetodiversifyproductsintohighermarginareasSelectivelyacquirenewinvestmentcapabilitiesInternationalCompetitivePositioningDifferentiatedbusinessmodelwithneeds-basedsellingIndustryleadingqualitycaptiveagencyforcewithsuperiorexecutionAdaptingtomarketchangesthroughmultiplegrowthopportunitiesPrioritiesforGrowthLeadwithprotectionsolutionsandinnovateasclientsneedsevolveGrowLifePlannersinallcountriesOptimizeLifeConsultantforcethroughqualityandproductivityStrategicallyexpandBankandIndependentAgencychannelsBuilddigital,mobile,anddataanalyticscapabilitiesAssetsundermanagementasofSeptember30,2018

2019FinancialOutlookConferenceCallCompetitiveAdvantagesofOurMarketLeadingFinancialWellnessBusinessesCompetitivePositioningGloballeaderinPensionRiskTransferwithdifferentiatedcapabilitiesLeadingproviderofFinancialWellnesssolutionsintheretirementmarketexpandinganddeepeningrelationshipswithemployers,intermediariesandworkplaceconsumersPrioritiesforGrowthLeveragestrongbusinessfundamentalsasafoundationforfuturegrowthCapitalizeonmarketandindustrytrendsthatofferopportunitiestoleverageourdifferentiatedcapabilitiesFocusedongrowth&innovation,improvedefficiencyandanenhancedcustomerexperience&engagementCompetitivePositioningLeadingU.S.providerofgrouplifeanddisabilityinsurancewithcoveragetoover15millionworkersBroadproductportfolioincludingsuccessinFinancialWellnessRetirementGroupInsurancePrioritiesforGrowthDeepenemployerandparticipantrelationshipswithFinancialWellnessprogramsExecuteondiversificationofmarketsandproductswhilemaintainingpricingdisciplineImproveorganizationalandprocessefficiencies

2019FinancialOutlookConferenceCallCompetitiveAdvantagesofOurMarketLeadingFinancialWellnessBusinessesCompetitivePositioningAmongindustry’slargestVariableAnnuitiesprovidersBroadrangeofsolutionstoaddresscustomerneedsImprovingtheriskprofilewithdiversifiedproductsPrioritiesforGrowthExtendsecureretirementincometoworkplacerelationshipsasapartofourFinancialWellnesspropositionEngagealargeraddressablemarketviaadditionaldistributionchannelsanddiversifiedproductmixCompetitivePositioningMulti-channeldistributionnetworkprovidesbroadmarketaccessLeadershippositionacrossdistinctiveproductportfolioIndividualAnnuitiesPrioritiesforGrowthExtendFinancialWellnessprogramthroughretaileducationandsolutionstoworkplacerelationshipsDeepenexistingdistributionrelationshipsandaddnewrelationshipsStreamlineunderwritingprocessandenhancecustomerexperienceIndividualLife

2019FinancialOutlookConferenceCall2019KeyAssumptionsEquitymarketgrowthinGuidance:Equitymarketgrowthinalternativescenario:U.S.Dollar@105Yenand1,110Won10-YearU.S.Treasuryof3.15%attheendof201930-YearJapanGovernmentBondof0.94%attheendof2019Returnonnon-couponinvestmentsbelowourlong-termexpectedaveragerangeof5%-6%Corporate&Otherestimatedannualoperatinglossof$1.3billionEffectivetaxrate~21.5%Year-EndLevel2019vs.201820182019AppreciationDailyAvg.S&P5002,7002,8084%FlatRussell20001,5071,5684%-4%EAFE1,7891,8604%-7%Year-EndLevel2019vs.201820182019AppreciationDailyAvg.S&P5002,8002,9686%+4%Russell20001,5631,6576%FlatEAFE1,8551,9666%-3%

2019FinancialOutlookConferenceCall2019KeySensitivitiesandBusinessUnitMetrics(1)TotalCompanySensitivities(2)BusinessUnitSensitivities/MetricsPGIMAnnualOtherRelatedRevenues,netofexpenses,expectedtorangefrom$175millionto$250millionInternationalAonestandarddeviationchangefromexpectedmortalityexperienceimpactsannualpre-taxAOIby$25millionto$40millionRetirementAonestandarddeviationchangefromexpectedreservegainsimpactsannualpre-taxAOIby$40millionto$60millionGroupInsuranceCombinedlifeanddisabilitytargetbenefitsratioof85%-89%A100bpschangetothecombinedlifeanddisabilitybenefitsratioimpactsannualpre-taxAOIby$45millionto$50millionIndividualAnnuitiesLong-termexpectedreturnonassetsofapproximately115basispointswithnear-termupsideIndividualLifeAonestandarddeviationchangefromexpectedmortalityexperienceimpactsannualpre-taxAOIby$55millionto$80millionU.S.FinancialWellnessImpactonresultsmaynotbelinearandmayvaryfromindicatedsensitivitiesatthresholdsgreaterthanthoseindicated.Equitymarketimpactrepresentstheimpactonresultsfromassumedchangeinmarketvalueofequityinvestmentsunderlyingaccountvalues,equitymarketimpactonnon-couponinvestmentsrepresentstheestimatedimpacttoprivateequityandhedgefundresultsincludingcorrelations,andinterestrateimpactrepresentstheimpactonresultsfromassumedparallelshiftofyieldcurve,ineachcaseoccurringatthebeginningoftheyear.Forequities,weassumeprogressionofvaluesoverthecourseoftheyearalongapathparalleltothatofourassumptionsasindicatedonpage13.Forinterestrates,weassumeprogressionalongayieldcurveoverthecourseoftheyearparalleltothatofourassumptionsasindicatedonpage13.AOIbasis,excludingIndividualAnnuitiesmarketexperienceupdates.AnnualEPSImpactEquityMarket:+/-10%~$0.30EquityMarketimpactonNon-CouponInvestments:+/-10%~$0.30InterestRate:+/-100bps~$0.30*Representsaone-timeimpactfromthemark-to-marketofinvestments

2019FinancialOutlookConferenceCallLowAdjustedAssetLeverageAssetLeverageAdjustedAssetLeverageExcludednon-creditriskassets(1):Forexample:governmentbonds,assetssupportingexperience-ratedcontractholderliabilities(2),andequities,etc.ExcludeClosedBlock(2):RisksareexpectedtobebornebycontractholdersAdjustforFXRemeasurementandGoodwill:Historicalnon-economicaccountingmismatchAdjustmentsDataasofSeptember30,2018.Sourcedfrom3Q1810-QandQFS.LifeGroupAverageincludes:Aflac,AmericanEquityLife,Ameriprise,Athene,AXAEquitable,Brighthouse,CNO,MetLife,Principal,Prudential,RGA,Unum,andVoya.U.S.dollarandforeigngovernmentbonds,assetssupportingexperience-ratedcontractholderliabilities,equitysecurities,policyloans,otherinvestedassets,andshort-terminvestments.Ifassetssupportingexperience-ratedcontractholderliabilities,orassetssupportingtheclosedblock,areinsufficienttomakeguaranteedbenefitspayments,suchpaymentsmustbemadebytherelevantinsurancecompany.InvestedAssets/Equityex.AOCI

SeasonalityOfKeyFinancialItems1Q2Q3Q4QPGIMOtherrelatedrevenuestendtobehighestRetirementCaseexperiencetendstobefavorablePRTsales,episodic,tendtobehighestin3Qand4QGroupInsuranceMortalitytendstobeunfavorableSalestendtobehighestIndividualAnnuitiesIndividualLifeMortalitytendstobeunfavorableSalestendtobehighestLifePlannerEarningstendtobehighestduetohigherannualmodepremiumsGibraltarLife&OtherEarningstendtobehighestduetohigherannualmodepremiumsCorporate&OtherLong-termanddeferredcompensationexpensestendtofluctuatewithPrudentialstockpriceAllOngoingOperationsImpactofannualassumptionupdateHigherthanaveragequarterlyexpensesofapproximately$125millionto$175million2019FinancialOutlookConferenceCall

Forward-LookingStatements,Non-GAAPMeasures,andOtherDisclosuresCertainofthestatementsincludedinthispresentation,includingourexpectedearningspershareandtheunderlyingassumptions,financialtargets,marketopportunities,prioritiesforgrowth,andsensitivitiesandmetricsconstituteforward-lookingstatementswithinthemeaningoftheU.S.PrivateSecuritiesLitigationReformActof1995.Wordssuchas“expects,”“believes,”“anticipates,”“includes,”“plans,”“assumes,”“estimates,”“projects,”“intends,”“should,”“will,”“shall”orvariationsofsuchwordsaregenerallypartofforward-lookingstatements.Forward-lookingstatementsaremadebasedonmanagement’scurrentexpectationsandbeliefsconcerningfuturedevelopmentsandtheirpotentialeffectsuponPrudentialFinancial,Inc.anditssubsidiaries.TherecanbenoassurancethatfuturedevelopmentsaffectingPrudentialFinancial,Inc.anditssubsidiarieswillbethoseanticipatedbymanagement.Theseforward-lookingstatementsarenotaguaranteeoffutureperformanceandinvolverisksanduncertainties,andtherearecertainimportantfactorsthatcouldcauseactualresultstodiffer,possiblymaterially,fromexpectationsorestimatesreflectedinsuchforward-lookingstatements,including,amongothers:(1)lossesoninvestmentsorfinancialcontractsduetodeteriorationincreditqualityorvalue,orcounterpartydefault;(2)lossesoninsuranceproductsduetomortalityexperience,morbidityexperienceorpolicyholderbehaviorexperiencethatdifferssignificantlyfromourexpectationswhenwepriceourproducts;(3)changesininterestrates,equitypricesandforeigncurrencyexchangeratesthatmay(a)adverselyimpacttheprofitabilityofourproducts,thevalueofseparateaccountssupportingtheseproductsorthevalueofassetswemanage,(b)resultinlossesonderivativesweusetohedgeriskorincreasecollateralpostingrequirementsand(c)limitopportunitiestoinvestatappropriatereturns;(4)guaranteeswithincertainofourproducts,inparticularourvariableannuities,whicharemarketsensitiveandmaydecreaseourearningsorincreasethevolatilityofourresultsofoperationsorfinancialposition;(5)liquidityneedsresultingfrom(a)derivativecollateralmarketexposure,(b)asset/liabilitymismatches,(c)thelackofavailablefundinginthefinancialmarketsor(d)unexpectedcashdemandsduetoseveremortalitycalamityorlapseevents;(6)financialorcustomerlosses,orregulatoryandlegalactions,duetoinadequateorfailedprocessesorsystems,humanerrorormisconduct,andexternalevents,suchas(a)disruptionofoursystemsanddata,(b)aninformationsecuritybreach,(c)afailuretoprotecttheprivacyofsensitivedataor(d)relianceonthird-parties,includingtodistributeourproducts;(7)changesintheregulatorylandscape,includingrelatedto(a)changesintaxlaws,(b)fiduciaryruledevelopments,(c)U.S.stateinsurancelawsanddevelopmentsregardinggroup-widesupervision,capitalandreserves,(d)insurercapitalstandardsoutsidetheU.S.and(e)privacyandcybersecurityregulation;(8)technologicalchangeswhichmayadverselyimpactcompaniesinourinvestmentportfolioorcauseinsuranceexperiencetodeviatefromourassumptions;(9)ratingsdowngrades;(10)marketconditionsthatmayadverselyaffectthesalesorpersistencyofourproducts;(11)competition;and(12)reputationaldamage.PrudentialFinancial,Inc.doesnotundertaketoupdateanyparticularforward-lookingstatementincludedinthisdocument.See“RiskFactors”includedintheAnnualReportonForm10-KfortheyearendedDecember31,2017fordiscussionofcertainrisksrelatingtoourbusinessesandinvestmentinoursecurities.Thispresentationalsoincludesreferencestoadjustedoperatingincome,adjustedbookvalueandadjustedoperatingreturnonequity,whichisbasedonadjustedoperatingincomeandadjustedbookvalue.ConsolidatedadjustedoperatingincomeandadjustedbookvaluearenotcalculatedbasedonaccountingprinciplesgenerallyacceptedintheUnitedStatesofAmerica(GAAP).Foradditionalinformationaboutadjustedoperatingincome,adjustedbookvalueandadjustedoperatingreturnonequityandthecomparableGAAPmeasures,includingreconciliationsbetweenthecomparablemeasures,pleaserefertoourquarterlyresultsnewsreleases,whichareavailableonourWebsiteatwww.investor.prudential.com.Reconciliationsarealsoincludedaspartofthispresentation.OurexpectationofCommonStockearningspershareisbasedonafter-taxadjustedoperatingincome.Duetotheinherentdifficultyinreliablyquantifyingfuturerealizedinvestmentgains/lossesandchangesinassetandliabilityvaluesgiventheirunknowntimingandpotentialsignificance,wecannot,withoutunreasonableeffort,provideameasureofourCommonStockearningspershareexpectationbasedonincomefromcontinuingoperations,whichistheGAAPmeasuremostcomparabletoadjustedoperatingincome.Analysts’estimatesorforecastsaretheirsaloneanddonotrepresenttheCompany’sestimatesorforecasts.TheCompanydoesnotbyitsreferencetosuchinformationimplyitsendorsementorconcurrence.____________________________________________________________________________PrudentialFinancial,Inc.oftheUnitedStatesisnotaffiliatedwithPrudentialplcwhichisheadquarteredintheUnitedKingdom.2019FinancialOutlookConferenceCall

2019FinancialOutlookConferenceCallReconciliationofAOIPerSharetotheComparableGAAPMeasure(1)RepresentsresultsofFSBforperiodspriorto2015.

192019FinancialOutlookConferenceCallReconciliationsofAdjustedBookValuetotheComparableGAAPMeasure(1)RepresentsresultsofFSBfor2012.2017amountshavebeenrevisedresultingfromtheeliminationofGibraltarLife’sone-monthreportinglag.Asofthefourthquarterof2017,exchangeablesurplusnotesaredilutivewhenbookvaluepershareisgreaterthan$85.00(equivalenttoanadditional5.88millionindilutedsharesandanincreaseof$500millioninequity).BookvaluepershareasofDecember31,2012excludestheimpactofexchangeablesurplusnotesduetotheanti-dilutiveimpactofconversion.Foreigncurrencytranslationadjustmentsandthecumulativeimpactofforeigncurrencyexchangerateremeasurement,exceptforthoseitemsremeasuredthroughnetincome(loss),areacomponentofaccumulatedothercomprehensiveincome.Includes$1,678millionimpactreportedinnetincomeforthefourthquarterof2017fromtheremeasurementofdeferredtaxassetsandliabilitiesoriginallyestablishedthroughaccumulatedothercomprehensiveincome,relatedtotheenactmentoftheTaxCutsandJobsActonDecember22,2017.Alsoincludesthecumulativeimpactofnetgainsandlossesresultingfromforeigncurrencyexchangerateremeasurementandassociatedrealizedinvestmentgainsandlossesincludedinnetincome(loss)andcurrencytranslationadjustmentscorrespondingtorealizedinvestmentgainsandlosses.

202019FinancialOutlookConferenceCallReconciliationofAOIEarningsPerSharetotheComparableGAAPMeasureAndtoEarningsPerShareExcludingNotableItemsNotableItemsrepresenttheimpactonresultsfromourannualreviewsandupdateofassumptionsandotherrefinements,thequarterlyupdatedestimateofIndividualAnnuitiesprofitabilitydrivenbymarketperformanceversusassumptions,andtheapproximateimpactattributabletovariancesfromtheCompany’sexpectations.TheCompanychoosestohighlighttheimpactoftheseitemsbecauseitbelievestheircontributiontoresultsinagivenperiodmaynotbeindicativeoffutureperformance.Thesenotableitemsdonotincludeseasonalityimpactsonquarterlyrevenueorexpensepatternsandmaynotencompassallitemsthatcouldaffectearningstrends.AverageexpectationsusedforcomparisonhereinarethoseineffectfortherespectiveperiodsshownatthetimeoforiginalreportingandarenotadjustedforsubsequentchangesintheCompany’sexpectations.Theseitems,wheresignificant,areindividuallyidentifiedfortherespectiveperiodsintheCompany’searningsreleases,availableatwww.investor.prudential.com.NotableItemsafter-taxarebasedonapplicationof21%taxrate.