Aetna 2012 Annual Report Download - page 111

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Annual Report- Page 105
The change in the balance of Level 3 financial assets during 2012 was as follows:
(Millions) Foreign
Securities
Commercial
Mortgage-
backed
Securities Equity
Securities Other Total
Beginning balance $ 49.4 $ 29.5 $ 36.7 $ 103.4 $ 219.0
Net realized and unrealized capital gains (losses):
Included in earnings 1.6 3.0 .8 (1.0) 4.4
Included in other comprehensive income 2.9 (1.1) (.2) 4.7 6.3
Other (1) .7 — 7.5 .5 8.7
Purchases 50.0 5.1 7.2 25.6 87.9
Sales (36.2) (4.9) (12.2) (6.2) (59.5)
Settlements (1.2) (6.1) — (17.4) (24.7)
Transfers out of Level 3, net (14.5) (5.4) (17.7) (8.7) (46.3)
Ending balance $ 52.7 $ 20.1 $ 22.1 $ 100.9 $ 195.8
(1) Reflects realized and unrealized capital gains and losses on investments supporting our experience-rated and discontinued products,
which do not impact our operating results.
The change in the balance of Level 3 financial assets during 2011 was as follows:
(Millions) Foreign
Securities
Commercial
Mortgage-
backed
Securities Equity
Securities Other Total
Beginning balance $ 54.9 $ 36.9 $ 37.9 $ 138.6 $ 268.3
Net realized and unrealized capital gains (losses):
Included in earnings 1.0 3.4 — (2.8) 1.6
Included in other comprehensive income (.8) 1.9 — 2.2 3.3
Other (1) (.9) — (6.4) (4.2) (11.5)
Purchases 35.1 — 5.5 22.7 63.3
Sales (24.5) — (.3) (18.0) (42.8)
Settlements (1.3) (12.7) — (28.5) (42.5)
Transfers out of Level 3, net (14.1) — — (6.6) (20.7) (2)
Ending balance $ 49.4 $ 29.5 $ 36.7 $ 103.4 $ 219.0
Amount of Level 3 net unrealized losses
included in net income $ — $ — $ — $ (.2) $ (.2)
(1) Reflects realized and unrealized capital gains and losses on investments supporting our experience-rated and discontinued products,
which do not impact our operating results.
(2) Gross transfers into Level 3 during 2011 include $11.1 million of other financial assets. Gross transfers out of Level 3 during
2011 include $17.7 million of other financial assets and $14.1 million of foreign securities.
The total gross transfers into (out of) Level 3 during the years ended December 31, 2012 and 2011 were as follows:
(Millions) 2012 2011
Gross transfers into Level 3 $ 1.8 $ 11.1
Gross transfers out of Level 3 (48.1) (31.8)
Net transfers out of Level 3 $ (46.3) $ (20.7)
Gross transfers out of Level 3 during 2012 primarily relate to equity securities that were valued using quoted prices
in an active market and debt securities that were valued using observable inputs.