PRUDENTIAL FINANCIAL, INC.  Notes to Consolidated Financial Statements “Net income (loss)” as determined in accordance with U. S.  GAAP but is the measure of segment profit or loss used by the Company’s chief operating decision maker to evaluate segment performance and allocate resources, and consistent with authoritative guidance, is the measure of segment performance presented below.
Adjusted operating income is calculated by adjusting each segment’s “Income (loss) from continuing operations before income taxes and equity in earnings of operating joint ventures” for the following items, which are described in greater detail below: ?
realized investment gains (losses), net, and related charges and adjustments; ?
net investment gains (losses) on trading account assets supporting insurance liabilities and changes in experience-rated contractholder liabilities due to asset value changes; ?
the contribution to income (loss) of divested businesses that have been or will be sold or exited, including businesses that have been placed in wind down status, but that did not qualify for “discontinued operations” accounting treatment under U. S.  GAAP; and ?
equity in earnings of operating joint ventures and earnings attributable to noncontrolling interests.
These items are important to an understanding of overall results of operations.
Adjusted operating income is not a substitute for income determined in accordance with U. S.  GAAP, and the Company’s definition of adjusted operating income may differ from that used by other companies.
However, the Company believes that the presentation of adjusted operating income as measured for management purposes enhances the understanding of results of operations by highlighting the results from ongoing operations and the underlying profitability factors of its businesses.
In addition, as previously disclosed in its Annual Report on Form 10-K for the year ended December 31, 2014, during 2014, the Company recorded out of period adjustments resulting in an aggregate net decrease of $193 million to “Income (loss) from continuing operations before income taxes and equity in earnings of operating joint ventures.
” Subsequent to 2014, the Company identified and recorded additional out of period adjustments of $84 million related to 2014, primarily reflecting a benefit from the release of reserves related to certain variable annuities products with optional living benefit guarantees.
The impact of these items resulted in a decrease in pretax adjusted operating income of $193 million for the year ended December 31, 2014, principally consisting of a net decrease of $84 million for the Group Insurance segment and $73 million for the International Insurance segment.
Realized investment gains (losses), net, and related charges and adjustments Realized investment gains (losses), net Adjusted operating income excludes “Realized investment gains (losses), net,” except for certain items described below.
Significant activity excluded from adjusted operating income includes impairments and credit-related gains (losses) from sales of securities, the timing of which depends largely on market credit cycles and can vary considerably across periods, and interest rate-related gains (losses) from sales of securities, which are largely subject to the Company’s discretion and influenced by market opportunities, as well as the Company’s tax and capital profile.
Additionally, certain gains (losses) pertaining to derivative contracts that do not qualify for hedge accounting treatment are also excluded from adjusted operating income.
Trends in the underlying profitability of the Company’s businesses can be more clearly identified without the fluctuating effects of these transactions.
The following table sets forth the significant components of “Realized investment gains (losses), net” that are included in adjusted operating income and, as a result, are reflected as adjustments to “Realized investment gains (losses), net” for purposes of calculating adjusted operating income:
## Table 0 ##
(1) In addition to the items in the table above, “Realized investment gains (losses), net, and related charges and adjustments” also includes an adjustment to reflect “Realized investment gains (losses), net” related to divested businesses as results of “Divested businesses,” discussed below.
Terminated Hedges of Foreign Currency Earnings.
The amounts shown in the table above primarily reflect the impact of an intercompany arrangement between Corporate and Other operations and the International Insurance segment, pursuant to which the nonU.
S.  dollar-denominated earnings in all countries for a particular year, including its interim reporting periods, are translated at fixed currency exchange rates.
The fixed rates are determined in connection with a currency hedging program designed to mitigate the risk that unfavorable rate changes will reduce the segment’s U. S.  dollar-equivalent earnings.
Pursuant to this program, the Company’s Corporate and Other operations may execute forward currency contracts with third parties to sell the net exposure of projected earnings from the hedged currency in exchange for U. S.  dollars at a specified exchange rate.
The maturities of these contracts correspond with the future periods in which the identified non-U.
S.  dollar-denominated earnings are expected to be generated.
These contracts do not qualify for hedge accounting under U. S.  GAAP, so the resulting profits or losses are recorded in “Realized investment gains (losses), net.
” When the contracts are terminated in the same period that the expected earnings emerge, the resulting positive or negative cash flow effect is included in adjusted operating income.
minimums.
We derive our revenue mainly from fee income generated on variable annuity account values, as the investment return on the contractholder funds is generally attributed directly to the contractholder.
We also earn investment income on fixed annuity account values and certain other management fees.
Our expenses primarily consist of interest credited and other benefits to contractholders, amortization of DAC and other costs, non-deferred expenses related to the selling and servicing of the various products we offer, costs of hedging certain risks associated with these products, changes in the reserves for benefit guarantees and other general business expenses.
These drivers of our business results are generally included in adjusted operating income, with exceptions related to certain guarantees, as discussed below.
The U. S.  GAAP accounting and our adjusted operating income treatment for our guarantees differ depending upon the specific feature.
The reserves for our GMDB and GMIB features are calculated based on our best estimate of actuarial and capital markets return assumptions.
The risks associated with these benefit features are retained and results are included in adjusted operating income.
In contrast, certain of our guaranteed living benefit features are accounted for as embedded derivatives and reported at fair value.
Under U. S.  GAAP, the fair values of these benefit features are based on assumptions a market participant would use in valuing these embedded derivatives.
We hedge or limit our exposure to certain risks associated with these features through our living benefits hedging program and product design features.
Adjusted operating income, as discussed below in “—Adjusted Operating Income” and “—Revenues, Benefits and Expenses,” excludes amounts related to changes in the market value of the embedded derivatives and related hedge positions, and the related impact to amortization of DAC and other costs.
The items excluded from adjusted operating income are discussed below in “—Variable Annuity Hedging Program Results.
” Account Values Account values are a significant driver of our operating results.
Since most fees are determined by the level of separate account assets, fee income varies according to the level of account values.
Additionally, our fee income generally drives other items such as our pattern of amortization of DAC and other costs.
Account values are driven by net flows from new business sales, surrenders, withdrawals and benefit payments, the impact of market value changes, which can be either positive or negative, and policy charges.
The annuity industry competitive landscape, which has been dynamic over the last few years, may impact our net flows, including new business sales.
The following table sets forth account value information for the periods indicated.
## Table 1 ##
(1) Includes variable and fixed annuities sold as retail investment products.
Investments sold through defined contribution plan products are included with such products within the Retirement segment.
Variable annuity account values were $149.4 billion, $155.1 billion and $150.4 billion as of December 31, 2015, 2014 and 2013, respectively.
Fixed annuity account values were $3.5 billion, $3.6 billion and $3.7 billion as of December 31, 2015, 2014 and 2013, respectively.2015 to 2014 Annual Comparison.
The decrease in account values during 2015 was largely driven by policy charges on contractholder accounts, benefit payments and unfavorable changes in the market value of contractholder funds.
These negative impacts were partially offset by positive net sales.
The decline in net sales for 2015 compared to 2014 was largely driven by decreased sales of our Prudential Premier?
Retirement Variable Annuity with “highest daily” benefit riders from actions we have taken in response to capital markets conditions.
This was partially offset by an increase in sales of our Prudential Premier?
Investment Variable Annuity (“PPI”) and Prudential Defined Income Variable Annuity (“PDI”) products, as a result of our product diversification strategy.2014 to 2013 Annual Comparison.
The increase in account values during 2014 was largely driven by changes in the market value of contractholder funds, partially offset by policy charges on contractholder accounts and benefit payments.
Positive net sales also contributed to account value growth, but to a lesser extent, as results for 2014 compared to 2013 reflected a decline in sales coupled with an increase in surrenders and withdrawals.
The decline in net sales reflected a decline in sales of our products with the highest daily benefit, partially offset by higher sales of our PDI product, and higher surrenders and withdrawals.
Adjusted Operating Income 2015 to 2014 Annual Comparison.
Adjusted operating income decreased $6 million.
Higher asset management fees from growth in assets under management were more than offset by higher expenses, including distribution costs associated with higher retail sales and expenses relating to business growth initiatives.
The decrease also reflected lower other related revenues, net of expenses, primarily related to lower strategic investing results.2014 to 2013 Annual Comparison.
Adjusted operating income increased $62 million.
The increase primarily reflected higher asset management fees, net of expenses, from growth in assets under management.
The increase also reflected higher other related revenues, net of expenses, primarily related to higher performance-based incentive fees, partially offset by lower commercial mortgage results.
Revenues and Expenses The following table sets forth the Asset Management segment’s revenues, presented on a basis consistent with the table above under “—Operating Results,” by type.
## Table 2 ##
(1) Consists of fees from: individual mutual funds and variable annuities and variable life insurance separate account assets; funds invested in proprietary mutual funds through our defined contribution plan products; and third-party sub-advisory relationships.
Revenues from fixed annuities and the fixedrate accounts of variable annuities and variable life insurance are included in the general account.
(2) Includes mortgage origination and spread lending revenues of our commercial mortgage origination and servicing business.
(3) Future revenues will be impacted by the level and diversification of our strategic investments, the commercial real estate market, and other domestic and international markets.
(4) Includes payments from Wells Fargo under an agreement dated as of July 30, 2004, implementing arrangements with respect to money market mutual funds in connection with the combination of our retail securities brokerage and clearing operations with those of Wells Fargo.
The agreement extends for ten years after termination of the Wachovia Securities joint venture, which occurred on December 31, 2009.
The revenue from Wells Fargo under this agreement was $78 million in 2015, $77 million in 2014 and $75 million in 2013.2015 to 2014 Annual Comparison.
Revenues, as shown in the table above under “—Operating Results,” increased $104 million.
Asset management fees increased $114 million primarily as a result of higher assets under management due to positive net asset flows and market appreciation.
Service, distribution and other revenues increased $11 million reflecting higher fees from certain consolidated funds, which were partially offset by higher expenses related to noncontrolling interests in these funds.
Partially offsetting these increases was a $15 million decrease in strategic investing revenues, primarily reflecting a gain on the sale of an investment in the prior year.
Expenses, as shown in the table above under “—Operating Results,” increased $110 million, including expenses related to business growth initiatives, commissions from higher retail sales and higher expenses related to revenues associated with certain consolidated funds, as discussed above.2014 to 2013 Annual Comparison.
Revenues, as shown in the table above under “—Operating Results,” increased $162 million.
Asset management fees increased $140 million primarily as a result of higher assets under management due to market appreciation and positive net asset flows.
Performance-based incentive fees increased $29 million primarily related to certain fixed income funds.
Service, distribution and other revenues increased $14 million mainly reflecting higher fees and net investment income related to certain consolidated funds.
Partially offsetting these increases was a $15 million decrease in commercial mortgage revenues, driven by the continued run off of the interim loan portfolio.
Expenses, as shown in the table above under “—Operating Results,” increased $100 million, primarily driven by higher compensation costs.
## Table 3 ##
Year Ended December 31, 2013
## Table 4 ##
(1) Yields are based on quarterly average carrying values except for fixed maturities, equity securities and securities lending activity.
Yields for fixed maturities are based on amortized cost.
Yields for equity securities are based on cost.
Yields for fixed maturities and short-term investments and cash equivalents are calculated net of liabilities and rebate expenses corresponding to securities lending activity.
Yields exclude investment income on assets other than those included in invested assets.
Prior period yields are presented on a basis consistent with the current period presentation.
(2) Includes investment income of our asset management operations and derivative operations, as described below under “—Invested Assets of Other Entities and Operations.
” See below for a discussion of the change in the yields for PFI excluding the Closed Block division.
The net investment income yield attributable to the Closed Block division for 2015 decreased compared to 2014, due to lower income on non-coupon investments and lower fixed income reinvestment rates.
The net investment income yield attributable to the Closed Block division for 2014 remained relatively flat compared to 2013, as higher income from non-coupon investments was mostly offset by lower fixed income reinvestment rates.
The following table details the effect on net income and earnings per share had compensation expense for all of our stock-based awards, including stock options, been recorded in the year ended December 31, 2005 based on the fair value method under FASB Statement No.123, Accounting for Stock-Based Compensation.
## Table 5 ##
[a] Stock options for executives granted in 2003 and 2002 included a reload feature.
This reload feature allowed executives to exercise their options using shares of Union Pacific Corporation common stock that they already owned and obtain a new grant of options in the amount of the shares used for exercise plus any shares withheld for tax purposes.
The reload feature of these option grants could only be exercised if the price of our common stock increased at least 20% from the price at the time of the reload grant.
During the year ended December 31, 2005, reload option grants represented $19 million of the pro forma expense noted above.
There were no reload option grants during 2007 and 2006 as stock options exercised after January 1, 2006 are not eligible for the reload feature.
Earnings Per Share – Basic earnings per share are calculated on the weighted-average number of common shares outstanding during each period.
Diluted earnings per share include shares issuable upon exercise of outstanding stock options and stock-based awards where the conversion of such instruments would be dilutive.
Use of Estimates – Our Consolidated Financial Statements include estimates and assumptions regarding certain assets, liabilities, revenue, and expenses and the disclosure of certain contingent assets and liabilities.
Actual future results may differ from such estimates.
Income Taxes – As required under FASB Statement No.109, Accounting for Income Taxes, we account for income taxes by recording taxes payable or refundable for the current year and deferred tax assets and liabilities for the expected future tax consequences of events that have been recognized in our financial statements or tax returns.
These expected future tax consequences are measured based on provisions of tax law as currently enacted; the effects of future changes in tax laws are not anticipated.
Future tax law changes, such as a change in the corporate tax rate, could have a material impact on our financial condition or results of operations.
When appropriate, we record a valuation allowance against deferred tax assets to offset future tax benefits that may not be realized.
In determining whether a valuation allowance is appropriate, we consider whether it is more likely than not that all or some portion of our deferred tax assets will not be realized, based on management’s judgments regarding the best available evidence about future events.
When we have claimed tax benefits that may be challenged by a tax authority, these uncertain tax positions are accounted for under FASB Interpretation No.48, Accounting for Uncertainty in Income Taxes, an Interpretation of FASB Statement No.109 (FIN 48).
We adopted FIN 48 beginning January 1, 2007.
Prior to 2007, income tax contingencies were accounted for under FASB Statement No.5, Accounting for Contingencies.
Under FIN 48, we recognize tax benefits only for tax positions that are more likely than not to be sustained upon examination by tax authorities.
The amount recognized is measured as the largest amount of benefit that is greater than 50 percent likely to be realized upon settlement.
A liability for “unrecognized tax benefits” is

<table><tr><td></td><td colspan="3">Year Ended December 31,</td></tr><tr><td></td><td>2015</td><td>2014</td><td>2013</td></tr><tr><td></td><td colspan="3">(in millions)</td></tr><tr><td>Net gains (losses) from(1):</td><td></td><td></td><td></td></tr><tr><td>Terminated hedges of foreign currency earnings</td><td>$284</td><td>$293</td><td>$240</td></tr><tr><td>Current period yield adjustments</td><td>$475</td><td>$476</td><td>$445</td></tr><tr><td>Principal source of earnings</td><td>$123</td><td>$100</td><td>$122</td></tr></table>
<table><tr><td></td><td colspan="3">Year ended December 31,</td></tr><tr><td></td><td>2015</td><td>2014</td><td>2013</td></tr><tr><td></td><td colspan="3">(in millions)</td></tr><tr><td>Total Individual Annuities-1:</td><td></td><td></td><td></td></tr><tr><td>Beginning total account value</td><td>$158,664</td><td>$154,140</td><td>$135,342</td></tr><tr><td>Sales</td><td>8,780</td><td>10,008</td><td>11,513</td></tr><tr><td>Surrenders and withdrawals</td><td>-8,415</td><td>-8,852</td><td>-7,727</td></tr><tr><td>Net sales</td><td>365</td><td>1,156</td><td>3,786</td></tr><tr><td>Benefit payments</td><td>-1,910</td><td>-1,799</td><td>-1,617</td></tr><tr><td>Net flows</td><td>-1,545</td><td>-643</td><td>2,169</td></tr><tr><td>Change in market value, interest credited and other activity</td><td>-585</td><td>8,666</td><td>19,826</td></tr><tr><td>Policy charges</td><td>-3,589</td><td>-3,499</td><td>-3,197</td></tr><tr><td>Ending total account value</td><td>$152,945</td><td>$158,664</td><td>$154,140</td></tr></table>
<table><tr><td></td><td colspan="3">Year ended December 31,</td></tr><tr><td></td><td>2015</td><td>2014</td><td>2013</td></tr><tr><td></td><td colspan="3">(in millions)</td></tr><tr><td>Revenues by type:</td><td></td><td></td><td></td></tr><tr><td>Asset management fees by source:</td><td></td><td></td><td></td></tr><tr><td>Institutional customers</td><td>$923</td><td>$877</td><td>$838</td></tr><tr><td>Retail customers-1</td><td>764</td><td>720</td><td>631</td></tr><tr><td>General account</td><td>448</td><td>424</td><td>412</td></tr><tr><td>Total asset management fees</td><td>2,135</td><td>2,021</td><td>1,881</td></tr><tr><td>Incentive fees</td><td>88</td><td>91</td><td>62</td></tr><tr><td>Transaction fees</td><td>20</td><td>26</td><td>25</td></tr><tr><td>Strategic investing</td><td>30</td><td>45</td><td>52</td></tr><tr><td>Commercial mortgage-2</td><td>103</td><td>100</td><td>115</td></tr><tr><td>Other related revenues-3</td><td>241</td><td>262</td><td>254</td></tr><tr><td>Service, distribution and other revenues-4</td><td>568</td><td>557</td><td>543</td></tr><tr><td>Total revenues</td><td>$2,944</td><td>$2,840</td><td>$2,678</td></tr></table>
<table><tr><td></td><td colspan="6">Year Ended December 31, 2014</td></tr><tr><td></td><td colspan="2">PFI excludingClosed Block Division</td><td colspan="2">Closed BlockDivision</td><td colspan="2">Combined</td></tr><tr><td></td><td>Yield-1</td><td>Amount</td><td>Yield-1</td><td>Amount</td><td>Yield-1</td><td>Amount</td></tr><tr><td></td><td colspan="6">($ in millions)</td></tr><tr><td>Fixed maturities</td><td>3.90%</td><td>$8,762</td><td>5.18%</td><td>$1,917</td><td>4.08%</td><td>$10,679</td></tr><tr><td>Trading account assets supporting insurance liabilities</td><td>3.75</td><td>765</td><td>0.00</td><td>0</td><td>3.75</td><td>765</td></tr><tr><td>Equity securities</td><td>5.97</td><td>275</td><td>3.40</td><td>79</td><td>5.11</td><td>354</td></tr><tr><td>Commercial mortgage and other loans</td><td>4.80</td><td>1,565</td><td>5.45</td><td>524</td><td>4.95</td><td>2,089</td></tr><tr><td>Policy loans</td><td>5.08</td><td>341</td><td>6.07</td><td>292</td><td>5.49</td><td>633</td></tr><tr><td>Short-term investments and cash equivalents</td><td>0.21</td><td>26</td><td>1.03</td><td>8</td><td>0.25</td><td>34</td></tr><tr><td>Other investments</td><td>9.10</td><td>753</td><td>13.35</td><td>342</td><td>10.11</td><td>1,095</td></tr><tr><td>Gross investment income before investment expenses</td><td>4.04</td><td>12,487</td><td>5.54</td><td>3,162</td><td>4.28</td><td>15,649</td></tr><tr><td>Investment expenses</td><td>-0.14</td><td>-362</td><td>-0.27</td><td>-155</td><td>-0.16</td><td>-517</td></tr><tr><td>Investment income after investment expenses</td><td>3.90%</td><td>12,125</td><td>5.27%</td><td>3,007</td><td>4.12%</td><td>15,132</td></tr><tr><td>Investment results of other entities and operations-2</td><td></td><td>124</td><td></td><td>0</td><td></td><td>124</td></tr><tr><td>Total investment income</td><td></td><td>$12,249</td><td></td><td>$3,007</td><td></td><td>$15,256</td></tr></table>
<table><tr><td></td><td colspan="6">Year Ended December 31, 2013</td></tr><tr><td></td><td colspan="2">PFI excludingClosed Block Division</td><td colspan="2">Closed BlockDivision</td><td colspan="2">Combined</td></tr><tr><td></td><td>Yield-1</td><td>Amount</td><td>Yield-1</td><td>Amount</td><td>Yield-1</td><td>Amount</td></tr><tr><td></td><td colspan="6">($ in millions)</td></tr><tr><td>Fixed maturities</td><td>3.79%</td><td>$8,575</td><td>5.30%</td><td>$2,002</td><td>4.01%</td><td>$10,577</td></tr><tr><td>Trading account assets supporting insurance liabilities</td><td>3.79</td><td>775</td><td>0.00</td><td>0</td><td>3.79</td><td>775</td></tr><tr><td>Equity securities</td><td>6.19</td><td>256</td><td>3.40</td><td>82</td><td>5.16</td><td>338</td></tr><tr><td>Commercial mortgage and other loans</td><td>5.04</td><td>1,403</td><td>5.85</td><td>552</td><td>5.24</td><td>1,955</td></tr><tr><td>Policy loans</td><td>4.82</td><td>316</td><td>6.01</td><td>295</td><td>5.33</td><td>611</td></tr><tr><td>Short-term investments and cash equivalents</td><td>0.22</td><td>30</td><td>0.95</td><td>7</td><td>0.25</td><td>37</td></tr><tr><td>Other investments</td><td>7.04</td><td>553</td><td>10.22</td><td>228</td><td>7.75</td><td>781</td></tr><tr><td>Gross investment income before investment expenses</td><td>3.89</td><td>11,908</td><td>5.52</td><td>3,166</td><td>4.15</td><td>15,074</td></tr><tr><td>Investment expenses</td><td>-0.12</td><td>-308</td><td>-0.26</td><td>-150</td><td>-0.14</td><td>-458</td></tr><tr><td>Investment income after investment expenses</td><td>3.77%</td><td>11,600</td><td>5.26%</td><td>3,016</td><td>4.01%</td><td>14,616</td></tr><tr><td>Investment results of other entities and operations-2</td><td></td><td>113</td><td></td><td>0</td><td></td><td>113</td></tr><tr><td>Total investment income</td><td></td><td>$11,713</td><td></td><td>$3,016</td><td></td><td>$14,729</td></tr></table>
<table><tr><td><i>Pro Forma Stock-Based Compensation Expense</i><i>Millions of Dollars, Except Per Share Amounts</i></td><td>2005</td></tr><tr><td>Net income, as reported</td><td>$ 1,026</td></tr><tr><td>Stock-based employee compensation expense, reported in net income, net of tax</td><td>13</td></tr><tr><td>Total stock-based employee compensation expense determined under fair value–based method for allawards, net of tax [a]</td><td>-50</td></tr><tr><td>Pro forma net income</td><td>$ 989</td></tr><tr><td>Earnings per share – basic, as reported</td><td>$ 3.89</td></tr><tr><td>Earnings per share – basic, pro forma</td><td>$ 3.75</td></tr><tr><td>Earnings per share – diluted, as reported</td><td>$ 3.85</td></tr><tr><td>Earnings per share – diluted, pro forma</td><td>$ 3.71</td></tr></table>

Question: what was the percentage difference between earnings per share 2013 diluted as reported and earnings per share 2013 diluted pro forma ?