The Prudential Series Fund
The Prudential Series Fund
The Prudential Series Fund
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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS OF<br />
THE PRUDENTIAL VARIABLE CONTRACT REAL PROPERTY PARTNERSHIP<br />
For Years Ended December 31, 2008, 2007, and 2006<br />
Note 5: Fair Value Measurements (continued)<br />
Table 1 below summarizes the assets measured at fair value on a recurring basis and their respective position in the fair value<br />
hierarchy.<br />
Table 1<br />
(in 000's)<br />
Fair value measurements at December 31, 2008 using<br />
Assets:<br />
Amounts<br />
measured at<br />
fair value<br />
12/31/2008<br />
Quoted prices in<br />
active markets for<br />
identical assets<br />
(level 1)<br />
Significant other<br />
observable<br />
inputs (level 2)<br />
Significant<br />
unobservable inputs<br />
(level 3)<br />
Real estate and improvements $ 221,196 $ - $ - $<br />
221,196<br />
Real estate partnerships and<br />
preferred equity investments 11,797 - - 11,797<br />
Total $ 232,993 $ - $ - $<br />
232,993<br />
As required under SFAS 157, table 2 below present a reconciliation of the beginning and ending balances for all assets measured<br />
at fair value on a recurring basis using significant unobservable inputs (Level 3) for the year ended December 31, 2008.<br />
Table 2<br />
(in 000's)<br />
Fair value measurements using significant unobservable inputs<br />
(Level 3)<br />
Real estate and<br />
partnerships and<br />
Real estate and preferred equity<br />
improvements investments Total<br />
Beginning balance @ 1/1/08 $ 254,394 $ 14,524 $ 268,918<br />
Net gains (losses) realized/unrealized<br />
included in earnings (or changes in net assets) (43,134) (2,527) (45,661)<br />
Equity income (losses)/interest income - 994 994<br />
Acquisitions/issuances/contributions 9,936 - 9,936<br />
Dispositions/settlements/distributions - (1,194) (1,194)<br />
Ending balance @ 12/31/08 $ 221,196 $ 11,797 $ 232,993<br />
Unrealized gains (losses) for the period relating<br />
to level 3 assets still held at the reporting date $ (43,134) $ (2,527) $ (45,661)<br />
B-13 Real Property