EX-99.8 10 dex998.htm SCHEDULE V - VALUATION AND QUALIFYING ACCOUNTS Schedule V - Valuation and Qualifying Accounts

Exhibit 99.8

 

PRUDENTIAL FINANCIAL, INC.

Schedule V

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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