Prudential 2007 Annual Report Download - page 167

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PRUDENTIAL FINANCIAL, INC.
Notes to Consolidated Financial Statements
18. FAIR VALUE OF FINANCIAL INSTRUMENTS (continued)
Bank Customer Liabilities
The carrying amount for certain deposits (interest and non-interest demand, savings and money market accounts) approximates or
equals their fair values. Fair values for fixed-rate certificates of deposit are estimated using a discounted cash flow calculation that applies
interest rates being offered on certificates at the reporting dates to a schedule of aggregated expected monthly maturities.
The carrying amount approximates or equals fair value for the following instruments: fixed maturities classified as available for sale,
trading account assets supporting insurance liabilities, other trading account assets, equity securities, securities purchased under agreements
to resell, short-term investments, cash and cash equivalents, accrued investment income, restricted cash and securities, separate account
assets and liabilities, broker-dealer related receivables and payables, securities sold under agreements to repurchase, and cash collateral for
loaned securities. The following table discloses the Company’s financial instruments where the carrying amounts and fair values differ at
December 31,
2007 2006
Carrying
Amount
Fair
Value
Carrying
Amount
Fair
Value
(in millions)
Fixed maturities, held to maturity .................................................. $ 3,548 $ 3,543 $ 3,469 $ 3,441
Commercial loans .............................................................. 30,047 30,621 25,739 26,143
Policy loans ................................................................... 9,337 10,751 8,887 9,837
Investment contracts ............................................................ 66,550 66,574 64,518 64,571
Short-term and long-term debt .................................................... 29,758 29,737 23,959 24,276
Bank customer liabilities ......................................................... 1,333 1,334 903 903
Prudential Financial 2007 Annual Report 165