Prudential 2011 Annual Report Download - page 172

PRUDENTIAL FINANCIAL, INC.
Notes to Consolidated Financial Statements
4. INVESTMENTS (continued)
The commercial mortgage and agricultural property loans are geographically dispersed throughout the United States, Canada and Asia
with the largest concentrations in California (27%), New York (11%) and Texas (8%) at December 31, 2011.
Activity in the allowance for losses for all commercial mortgage and other loans, for the years ended December 31, is as follows:
2011(1)
Commercial
Mortgage
Loans
Agricultural
Property
Loans
Residential
Property
Loans
Other
Collateralized
Loans
Uncollateralized
Loans Total
(in millions)
Allowance for losses, beginning of year ................. $497 $ 8 $17 $20 $33 $575
Addition to / (release of) allowance of losses ............. (202) 11 (2) 13 1 (179)
Charge-offs, net of recoveries ......................... (1) 0 0 (15) (15) (31)
Change in foreign exchange ........................... 0 0 1 0 1 2
Allowance for losses, end of year ...................... $294 $19 $16 $18 $20 $367
2010(1)
Commercial
Mortgage
Loans
Agricultural
Property
Loans
Residential
Property
Loans
Other
Collateralized
Loans
Uncollateralized
Loans Total
(in millions)
Allowance for losses, beginning of year ................. $639 $0 $18 $20 $21 $698
Addition to / (release of) allowance of losses ............. (125) 8 (2) 1 11 (107)
Charge-offs, net of recoveries ......................... (17) 0 0 (1) 0 (18)
Change in foreign exchange ........................... 0 0 1 0 1 2
Allowance for losses, end of year ...................... $497 $8 $17 $20 $33 $575
2009(1)
Total
(in millions)
Allowance for losses, beginning of year ...................................................................... $332
Addition to / (release of) allowance of losses .................................................................. 468
Charge-offs, net of recoveries .............................................................................. (105)
Change in foreign exchange ............................................................................... 3
Allowance for losses, end of year ........................................................................... $698
(1) Valuation allowances for 2011 and 2010 are presented in a format consistent with new disclosure requirements under the updated guidance issued by
the FASB in 2011. Valuation allowances for 2009 are provided consistent with the prior presentation.
170 Prudential Financial, Inc. 2011 Annual Report