Form: 8-K

Current report

Exhibit 99.8

 

PRUDENTIAL FINANCIAL, INC.

Schedule V

Valuation and Qualifying Accounts

For the Years Ended December 31, 2005, 2004 and 2003 (in millions)

 

Description


  

Balance at
Beginning of

Period


   Additions

    Deductions

    Affect of
Foreign
Exchange Rates


    Balance at
End
of Period


      Charged to
Costs and
Expenses


   Other

       

2005

                                            

Allowance for losses on commercial loans

   $ 600    $ —      $ —       $ 303 (a)   $ (49 )   $ 248

Valuation allowance on deferred tax asset

     677      167      —         151 (b)     (17 )     676
    

  

  


 


 


 

     $ 1,277    $ 167    $ —       $ 454     $ (66 )   $ 924
    

  

  


 


 


 

2004

                                            

Allowance for losses on commercial loans

   $ 597    $ —      $ —       $ 19 (c)   $ 22     $ 600

Valuation allowance on deferred tax asset

     230      15      435 (d)     35 (b)     32       677
    

  

  


 


 


 

     $ 827    $ 15    $ 435     $ 54     $ 54     $ 1,277
    

  

  


 


 


 

2003

                                            

Allowance for losses on commercial loans

   $ 642    $ —      $ —       $ 81 (e)   $ 36     $ 597

Valuation allowance on deferred tax asset

     248      38      —         56 (b)     —         230
    

  

  


 


 


 

     $ 890    $ 38    $ —       $ 137     $ 36     $ 827
    

  

  


 


 


 


(a)   Represents $273 million of release of allowance for losses and $30 million of charge-offs, net of recoveries.
(b)   Represents, primarily, utilization and expiration of net operating losses.
(c)   Represents $12 million of release of allowance for losses and $7 million of charge-offs, net of recoveries.
(d)   Includes the establishment of a $443 million valuation allowance related to Hyundai, recorded at the date of acquisition.
(e)   Represents $31 million of release of allowance for losses and $50 million of charge-offs, net of recoveries.

 

1