PNC Bank 2014 Annual Report Download - page 68

F AIR V ALUE M EASUREMENTS
In addition to the following, see Note 7 Fair Value in the Notes To Consolidated Financial Statements in Item 8 of this Report for
further information regarding fair value.
The following table summarizes the assets and liabilities measured at fair value at December 31, 2014 and December 31, 2013,
respectively, and the portions of such assets and liabilities that are classified within Level 3 of the valuation hierarchy. Level 3
assets and liabilities are those where the fair value is estimated using significant unobservable inputs.
Table 19: Fair Value Measurements – Summary
December 31, 2014 December 31, 2013
Dollars in millions
Total
Fair Value Level 3
Total
Fair Value Level 3
Total assets $58,973 $10,257 $63,221 $10,650
Total assets at fair value as a percentage of consolidated assets 17% 20%
Level 3 assets as a percentage of total assets at fair value 17% 17%
Level 3 assets as a percentage of consolidated assets 3% 3%
Total liabilities $ 5,799 $ 716 $ 5,585 $ 638
Total liabilities at fair value as a percentage of consolidated liabilities 2% 2%
Level 3 liabilities as a percentage of total liabilities at fair value 12% 11%
Level 3 liabilities as a percentage of consolidated liabilities <1% <1%
The majority of assets recorded at fair value are included in the securities available for sale portfolio. The majority of Level 3
assets represent non-agency residential mortgage-backed securities in the securities available for sale portfolio, equity investments
and mortgage servicing rights.
An instrument’s categorization within the hierarchy is based on the lowest level of input that is significant to the fair value
measurement. Changes from one quarter to the next related to the observability of inputs to a fair value measurement may result in
a reclassification (transfer) of assets or liabilities between hierarchy levels. PNC’s policy is to recognize transfers in and transfers
out as of the end of the reporting period. For additional information regarding the transfers of assets or liabilities between hierarchy
levels, see Note 7 Fair Value in the Notes To Consolidated Financial Statements in Item 8 of this Report.
B USINESS S EGMENTS R EVIEW
We have six reportable business segments:
• Retail Banking
• Corporate & Institutional Banking
• Asset Management Group
• Residential Mortgage Banking
• BlackRock
• Non-Strategic Assets Portfolio
Business segment results, including the basis of presentation of inter-segment revenues, and a description of each business are included in
Note 24 Segment Reporting included in the Notes To Consolidated Financial Statements in Item 8 of this Report. Certain amounts included
in this Business Segments Review section and the Business Segment Highlights in the Executive Summary section of this Item 7 differ from
those amounts shown in Note 24, primarily due to the presentation in Item 7 of this Report of business net interest revenue on a taxable-
equivalent basis. Note 24 presents results of businesses for 2014, 2013 and 2012.
50 The PNC Financial Services Group, Inc. – Form 10-K