Prudential Financial, Inc. 5.62 (PRS) 8-K Results of Operations and Financial Condition

Exhibit 99.3

Prudential Financial, Inc.

Reconciliation between adjusted operating income and the comparable GAAP measure

First Quarter 2008

	2008		2007										2006		2005
($ in millions, except per share data)	1Q		Full Year		4Q		3Q		2Q		1Q		Full Year		Full Year
Pre-tax adjusted operating income	992		4,905		1,080		1,392		1,212		1,221		4,065		3,513
Income taxes, applicable to adjusted operating income	263		1,400		268		416		355		361		1,160		1,105
Financial Services Businesses after-tax adjusted operating income	729		3,505		812		976		857		860		2,905		2,408
Reconciling items:
Realized investment gains, net, and related charges and adjustments	(678	)	(96	)	(91	)	(180	)	34		141		83		549
Investment gains on trading account assets supporting insurance liabilities, net	(262	)	—		(10	)	36		(108	)	82		35		(33	)
Change in experience-rated contractholder liabilities due to asset value changes	200		13		9		(6	)	72		(62	)	11		(44	)
Divested businesses	(112	)	(26	)	(45	)	(27	)	18		28		119		21
Equity in earnings of operating joint ventures	(60	)	(400	)	(77	)	(103	)	(100	)	(120	)	(322	)	(214	)
Total reconciling items, before income taxes	(912	)	(509	)	(214	)	(280	)	(84	)	69		(74	)	279
Income taxes, not applicable to adjusted operating income	(216	)	(255	)	(137	)	(101	)	(35	)	18		(34	)	(463	)
Total reconciling items, after income taxes	(696	)	(254	)	(77	)	(179	)	(49	)	51		(40	)	742
Income from continuing operations (after-tax) of Financial Services Businesses before equity in earnings of operating joint ventures	33		3,251		735		797		808		911		2,865		3,150
Equity in earnings of operating joint ventures, net of taxes	43		246		46		67		56		77		208		142
Income from continuing operations (after-tax) of Financial Services Businesses	76		3,497		781		864		864		988		3,073		3,292
Income (loss) from discontinued operations, net of taxes	1		15		11		(4	)	(29	)	37		71		(73	)
Net income of Financial Services Businesses	77		3,512		792		860		835		1,025		3,144		3,219
Earnings per share of Common Stock (diluted):
Financial Services Businesses after-tax adjusted operating income	1.65		7.60		1.79		2.13		1.84		1.83		6.02		4.78
Reconciling items:
Realized investment gains, net, and related charges and adjustments	(1.51	)	(0.20	)	(0.20	)	(0.39	)	0.07		0.30		0.17		1.05
Investment gains on trading account assets supporting insurance liabilities, net	(0.58	)	—		(0.02	)	0.08		(0.23	)	0.17		0.07		(0.06	)
Change in experience-rated contractholder liabilities due to asset value changes	0.44		0.03		0.02		(0.01	)	0.15		(0.13	)	0.02		(0.08	)
Divested businesses	(0.25	)	(0.06	)	(0.10	)	(0.06	)	0.04		0.06		0.24		0.04
Equity in earnings of operating joint ventures	(0.13	)	(0.85	)	(0.17	)	(0.22	)	(0.21	)	(0.25	)	(0.65	)	(0.41	)
Total reconciling items, before income taxes	(2.03	)	(1.08	)	(0.47	)	(0.60	)	(0.18	)	0.15		(0.15	)	0.54
Income taxes, not applicable to adjusted operating income	(0.48	)	(0.53	)	(0.31	)	(0.21	)	(0.08	)	0.04		(0.07	)	(0.89	)
Total reconciling items, after income taxes	(1.55	)	(0.55	)	(0.16	)	(0.39	)	(0.10	)	0.11		(0.08	)	1.43
Income from continuing operations (after-tax) of Financial Services Businesses before equity in earnings of operating joint ventures	0.10		7.05		1.63		1.74		1.74		1.94		5.94		6.21
Equity in earnings of operating joint ventures, net of taxes	0.10		0.53		0.10		0.15		0.12		0.16		0.42		0.27
Income from continuing operations (after-tax) of Financial Services Businesses	0.20		7.58		1.73		1.89		1.86		2.10		6.36		6.48
Income (loss) from discontinued operations, net of taxes	—		0.03		0.02		(0.01	)	(0.06	)	0.08		0.14		(0.14	)
Net income of Financial Services Businesses	0.20		7.61		1.75		1.88		1.80		2.18		6.50		6.34