PRUDENTIAL FINANCIAL INC

Corporate and Other includes corporate operations, after allocations to our business segments, and Divested and Run-off Businesses other than those that qualify for “discontinued operations” accounting treatment under U.S. GAAP. The following table sets forth Corporate and Other’s operating results for the periods indicated:

The loss from Corporate and Other operations, on an adjusted operating income basis, decreased $20 million, primarily driven by lower net charges from other corporate activities of $43 million reflecting lower costs for long-term compensation plans, partially offset by higher net costs primarily related to technology. Pension and employee benefits results were favorable by $8 million, primarily reflecting higher earnings from our pension and post-retirement plans from higher returns on plan assets, and lower service costs. Interest expense on debt increased $31 million largely reflecting higher average debt balances.