KeyBank 2014 Annual Report Download - page 165

Assets and Liabilities Measured at Fair Value on a Recurring Basis
Certain assets and liabilities are measured at fair value on a recurring basis in accordance with GAAP. The
following tables present these assets and liabilities at December 31, 2014, and December 31, 2013.
December 31, 2014
in millions Level 1 Level 2 Level 3 Total
ASSETS MEASURED ON A RECURRING BASIS
Trading account assets:
U.S. Treasury, agencies and corporations — $ 555 — $ 555
States and political subdivisions —38—38
Collateralized mortgage obligations — — —
Other mortgage-backed securities — 124 — 124
Other securities $ 2 29 — 31
Total trading account securities 2 746 — 748
Commercial loans —2—2
Total trading account assets 2 748 — 750
Securities available for sale:
States and political subdivisions —23—23
Collateralized mortgage obligations — 11,270 — 11,270
Other mortgage-backed securities — 2,035 — 2,035
Other securities 22 — $ 10 32
Total securities available for sale 22 13,328 10 13,360
Other investments:
Principal investments:
Direct 2 — 102 104
Indirect — — 302 302
Total principal investments 2 — 404 406
Equity and mezzanine investments:
Direct ————
Indirect — — 10 10
Total equity and mezzanine investments — — 10 10
Total other investments 2 — 414 416
Derivative assets:
Interest rate — 924 13 937
Foreign exchange 91 2 — 93
Commodity — 608 — 608
Credit —235
Derivative assets 91 1,536 16 1,643
Netting adjustments (a) — — — (1,034)
Total derivative assets 91 1,536 16 609
Accrued income and other assets ————
Total assets on a recurring basis at fair value $ 117 $ 15,612 $ 440 $ 15,135
LIABILITIES MEASURED ON A RECURRING BASIS
Bank notes and other short-term borrowings:
Short positions $ — $ 423 — $ 423
Derivative liabilities:
Interest rate — 644 — 644
Foreign exchange 77 4 — 81
Commodity — 594 — 594
Credit —6$17
Derivative liabilities 77 1,248 1 1,326
Netting adjustments (a) — — — (542)
Total derivative liabilities 77 1,248 1 784
Accrued expense and other liabilities — — — —
Total liabilities on a recurring basis at fair value $ 77 $ 1,671 $ 1 $ 1,207
(a) Netting adjustments represent the amounts recorded to convert our derivative assets and liabilities from a gross basis to a net basis in
accordance with applicable accounting guidance. The net basis takes into account the impact of bilateral collateral and master netting
agreements that allow us to settle all derivative contracts with a single counterparty on a net basis and to offset the net derivative position
with the related cash collateral. Total derivative assets and liabilities include these netting adjustments.
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