Prudential 2011 Annual Report Download - page 174

PRUDENTIAL FINANCIAL, INC.
Notes to Consolidated Financial Statements
4. INVESTMENTS (continued)
Impaired loans include those loans for which it is probable that amounts due according to the contractual terms of the loan agreement
will not all be collected. Impaired commercial mortgage and other loans identified in management’s specific review of probable loan losses
and the related allowance for losses for the years ended December 31, are as follows:
2011
Recorded
Investment(1)
Unpaid
Principal
Balance
Related
Allowance
Average
Recorded
Investment
Before
Allowance(2)
Interest
Income
Recognized(3)
(in millions)
With no related allowance recorded:
Commercial mortgage loans:
Industrial ................................. $ 0 $ 0 $ 0 $ 0 $ 0
Retail .................................... 0 0 0 0 0
Office .................................... 2 84 0 1 0
Apartments/Multi-Family .................... 0 0 0 0 0
Hospitality ................................ 0 0 0 23 0
Other .................................... 17 17 0 11 1
Total commercial mortgage loans .................. 19 101 0 35 1
Agricultural property loans ....................... 0 0 0 1 0
Residential property loans ........................ 0 0 0 0 0
Other collateralized loans ........................ 0 0 0 0 0
Uncollateralized loans ........................... 6 13 0 6 0
Total with no related allowance .................... $ 25 $114 $ 0 $ 42 $ 1
With an allowance recorded:
Commercial mortgage loans:
Industrial ................................. $ 54 $ 54 $ 19 $ 36 $ 1
Retail .................................... 89 89 11 114 3
Office .................................... 47 47 3 49 0
Apartments/Multi-Family .................... 102 102 19 197 4
Hospitality ................................ 129 129 55 178 0
Other .................................... 92 92 13 100 2
Total commercial mortgage loans .................. 513 513 120 674 10
Agricultural property loans ....................... 19 19 11 14 0
Residential property loans ........................ 0 0 0 5 0
Other collateralized loans ........................ 21 21 18 31 2
Uncollateralized loans ........................... 0 0 0 13 0
Total with related allowance ...................... $553 $553 $149 $737 $12
Total:
Commercial mortgage loans .................. $532 $614 $120 $709 $11
Agricultural property loans ................... 19 19 11 15 0
Residential property loans .................... 0 0 0 5 0
Other collateralized loans .................... 21 21 18 31 2
Uncollateralized loans ....................... 6 13 0 19 0
Total ..................................... $578 $667 $149 $779 $13
(1) Recorded investment reflects the balance sheet carrying value gross of related allowance.
(2) Average recorded investment represents the average of the beginning-of-period and all subsequent quarterly end-of-period balances.
(3) The interest income recognized reflects the related year-to-date income, regardless of the impairment timing.
172 Prudential Financial, Inc. 2011 Annual Report