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PRUDENTIAL FINANCIAL, INC.
Notes to Consolidated Financial Statements
4. INVESTMENTS (continued)
Activity in the allowance for losses for all commercial mortgage and other loans, for the years ended December 31, is as follows:
Commercial
Mortgage
Loans
Agricultural
Property
Loans
Residential
Property
Loans
Other
Collateralized
Loans
Uncollateralized
Loans Total
(in millions)
Allowance for losses, beginning of year, 2010 .................. $497 $ 8 $17 $20 $33 $575
Addition to / (release of) allowance of losses ................... (94) 11 (2) 13 1 (71)
Charge-offs, net of recoveries ............................... (109) 0 0 (15) (15) (139)
Change in foreign exchange ................................. 0 0 1 0 1 2
Total Ending Balance, 2011 ............................. $294 $19 $16 $18 $20 $367
Commercial
Mortgage
Loans
Agricultural
Property
Loans
Residential
Property
Loans
Other
Collateralized
Loans
Uncollateralized
Loans Total
(in millions)
Allowance for losses, beginning of year, 2011 .................. $294 $19 $16 $18 $20 $367
Addition to / (release of) allowance of losses .................... (20) 1 (4) (6) (2) (31)
Charge-offs, net of recoveries ............................... (65) 0 0 0 0 (65)
Change in foreign exchange ................................. 0 0 (1) 0 (1) (2)
Total Ending Balance, 2012 ............................. $209 $20 $11 $12 $17 $269
The following tables set forth the allowance for credit losses and the recorded investment in commercial mortgage and other loans, for
the years ended December 31:
2012
Commercial
Mortgage
Loans
Agricultural
Property
Loans
Residential
Property
Loans
Other
Collateralized
Loans
Uncollateralized
Loans Total
(in millions)
Allowance for Credit Losses:
Ending balance: individually evaluated for impairment ........... $ 49 $ 12 $ 0 $ 12 $ 0 $ 73
Ending balance: collectively evaluated for impairment ........... 160 8 11 0 17 196
Ending balance: loans acquired with deteriorated credit quality ..... 0 0 0 0 0 0
Total ending balance .................................. $ 209 $ 20 $ 11 $ 12 $ 17 $ 269
Recorded Investment:(1)
Ending balance gross of reserves: individually evaluated for
impairment ............................................ $ 1,011 $ 49 $ 0 $ 93 $ 3 $ 1,156
Ending balance gross of reserves: collectively evaluated for
impairment ............................................ 31,103 2,073 790 47 1,833 35,846
Ending balance gross of reserves: loans acquired with deteriorated
credit quality .......................................... 0 0 0 0 0 0
Total ending balance, gross of reserves .................... $32,114 $2,122 $790 $140 $1,836 $37,002
(1) Recorded investment reflects the balance sheet carrying value gross of related allowance.
2011
Commercial
Mortgage
Loans
Agricultural
Property
Loans
Residential
Property
Loans
Other
Collateralized
Loans
Uncollateralized
Loans Total
(in millions)
Allowance for Credit Losses:
Ending balance: individually evaluated for impairment ........... $ 120 $ 11 $ 0 $ 18 $ 0 $ 149
Ending balance: collectively evaluated for impairment ........... 174 8 16 0 20 218
Ending balance: loans acquired with deteriorated credit quality ..... 0 0 0 0 0 0
Total ending balance .................................. $ 294 $ 19 $ 16 $ 18 $ 20 $ 367
Recorded Investment:(1)
Ending balance gross of reserves: individually evaluated for
impairment ............................................ $ 1,903 $ 45 $ 0 $110 $ 92 $ 2,150
Ending balance gross of reserves: collectively evaluated for
impairment ............................................ 28,316 2,001 1,034 66 2,231 33,648
Ending balance gross of reserves: loans acquired with deteriorated
credit quality .......................................... 0 0 0 0 0 0
Total ending balance, gross of reserves .................... $30,219 $2,046 $1,034 $176 $2,323 $35,798
(1) Recorded investment reflects the balance sheet carrying value gross of related allowance.
134 Prudential Financial, Inc. 2012 Annual Report