RECONCILIATIONS BETWEEN ADJUSTED OPERATING INCOME AND THE COMPARABLE GAAP MEASURE (1) 4 Financial Strength Symposium 6.23.2015 1) Represents results of former Financial Services Businesses. 2) As originally reported. 3) Reflects restatement for the Company's retrospective adoption in 2012 of amended accounting guidance for deferred policy acquisition costs and a discretionary change in accounting principle related to the Company's pension plans. Does not reflect restatement for the Company's retrospective adoption in 2013 of a discretionary changein accounting principle for recognition of performance based incentive fee revenue. 4) 2002 includes certain costs related to former sales practices. ($ millions) 2002 (2) 2007 (3) 2009 2013 2014 Pre-tax adjusted operating income 1,780 $ 3,916 $ 2,997 $ 6,369 $ 5,892 $ Income taxes, applicable to adjusted operating income 598 1,066 736 1,783 1,537 After-tax adjusted operating income 1,182 2,850 2,261 4,586 4,355 Reconciling items: Realized investment losses, net, and related charges and adjustments (859) (88) (1,669) (8,149) (4,130) Investment gains (losses) on trading account assets supporting insurance liabilities, net - - 1,601 (250) 339 Change in experience-rated contractholder liabilities due to asset value changes - 13 (899) 227 (294) Divested businesses (4) (100) 339 2,101 29 167 Equity in earnings of operating joint ventures and earnings attributable to noncontrolling interests - (354) (2,387) 28 44 Total reconciling items, before income taxes (959) (90) (1,253) (8,115) (3,874) Income taxes, not applicable to adjusted operating income (518) (99) (663) (2,857) (1,082) Total reconciling items, after income taxes (441) 9 (590) (5,258) (2,792) Income (loss) from continuing operations (after-tax) before equity in earnings of operating joint ventures 741 2,859 1,671 (672) 1,563 Equity in earnings of operating joint ventures, net of taxes and earnings attributable to noncontrolling interests - 179 1,580 (48) (41) Income (loss) from continuing operations attributable to Prudential Financial, Inc. 741 3,038 3,251 (720) 1,522 Earnings attributable to noncontrolling interests - 67 (57) 107 57 Income (loss) from continuing operations (after-tax) 741 3,105 3,194 (613) 1,579 Income (loss) from discontinued operations, net of taxes (62) 217 (19) 7 11 Net income (loss) 679 3,322 3,175 (606) 1,590 Less: Income attributable to noncontrolling interests - 67 (57) 107 57 Net income (loss) attributable to Prudential Financial, Inc. 679 $ 3,255 $ 3,232 $ (713) $ 1,533 $ |