SCHEDULE V - VALUATION AND QUALIFYING ACCOUNTS
Published on
Exhibit 99.8
PRUDENTIAL FINANCIAL, INC.
Valuation and Qualifying Accounts
For the Years Ended December 31, 2007, 2006 and 2005 (in millions)
| Additions | ||||||||||||||||||||
| Description |
Balance at Beginning of Period |
Charged to Costs and Expenses |
Other | Deductions | Affect of Foreign Exchange Rates |
Balance at End of Period | ||||||||||||||
| 2007 |
||||||||||||||||||||
| Allowance for losses on commercial loans |
$ | 185 | $ | — | $ | — | $ | 13 | (a) | $ | 1 | $ | 173 | |||||||
| Valuation allowance on deferred tax asset |
592 | — | — | 206 | (b) | (4 | ) | 382 | ||||||||||||
| $ | 777 | $ | — | $ | — | $ | 219 | $ | (3 | ) | $ | 555 | ||||||||
| 2006 |
||||||||||||||||||||
| Allowance for losses on commercial loans |
$ | 248 | $ | — | $ | — | $ | 64 | (c) | $ | 1 | $ | 185 | |||||||
| Valuation allowance on deferred tax asset |
676 | 4 | — | 75 | (d) | (13 | ) | 592 | ||||||||||||
| $ | 924 | $ | 4 | $ | — | $ | 139 | $ | (12 | ) | $ | 777 | ||||||||
| 2005 |
||||||||||||||||||||
| Allowance for losses on commercial loans |
$ | 600 | $ | — | $ | — | $ | 303 | (e) | $ | (49 | ) | $ | 248 | ||||||
| Valuation allowance on deferred tax asset |
677 | 167 | — | 151 | (d) | (17 | ) | 676 | ||||||||||||
| $ | 1,277 | $ | 167 | $ | — | $ | 454 | $ | (66 | ) | $ | 924 | ||||||||
| (a) | Represents $11 million of release of allowance for losses and $2 million of charge-offs, net of recoveries. |
| (b) | Represents, primarily, $141 million reduction to the valuation allowance on the deferred taxes associated with the acquisition of Gibraltar Life as a result of the adoption of FIN No. 48, as well as the utilization and expiration of net operating losses. |
| (c) | Represents $57 million of release of allowance for losses and $7 million of charge-offs, net of recoveries. |
| (d) | Represents, primarily, utilization and expiration of net operating losses. |
| (e) | Represents $273 million of release of allowance for losses and $30 million of charge-offs, net of recoveries. |
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