Wells Fargo 2013 Annual Report Download - page 229

The changes in Level 3 assets and liabilities measured at fair value on a recurring basis for the year ended December 31, 2011 are
summarized as follows:
Total net gains
(losses) included in
(in millions)
Balance,
beginning
of year
Net
income
Other
compre-
hensive
income
Purchases,
sales,
issuances
and
settlements,
net (1)
Transfers
into
Level 3
Transfers
out of
Level 3
Balance,
end of
year
Net unrealized
gains (losses)
included in net
income related
to assets and
liabilities held
at period end (2)
Year ended December 31, 2011
Trading assets
(excluding derivatives):
Securities of U.S. states and
political subdivisions $ 5 3 - 12 51 (18) 53 -
Collateralized debt obligations 1,915 (24) - (297) - (12) 1,582 1
Corporate debt securities 166 1 - (70) - - 97 (80)
Mortgage-backed securities 117 6 - (36) 31 (10) 108 (4)
Asset-backed securities 366 75 - (122) - (129) 190 (2)
Equity securities 34 (3) - (28) 1 - 4 72
Total trading securities 2,603 58 - (541) 83 (169) 2,034 (13)
Other trading assets 136 (21) - 2 - (2) 115 14
Total trading assets
(excluding derivatives) 2,739 37 - (539) 83 (171) 2,149 1 (3)
Available-for-sale securities:
Securities of U.S. states and
political subdivisions 4,564 10 52 6,923 - (33) 11,516 9
Mortgage-backed securities:
Residential 20 (9) (1) (6) 121 (64) 61 (8)
Commercial 217 (44) 59 2 2 (4) 232 (56)
Total mortgage-backed
securities 237 (53) 58 (4) 123 (68) 293 (64)
Corporate debt securities 433 150 (112) (185) 41 (32) 295 (3)
Collateralized debt obligations 4,778 290 (202) 3,725 8 - 8,599 -
Asset-backed securities:
Auto loans and leases 6,133 4 (27) 531 - - 6,641 -
Home equity loans 112 (3) (18) 40 221 (70) 282 (25)
Other asset-backed securities 3,150 10 13 181 107 (598) 2,863 (7)
Total asset-backed securities 9,395 11 (32) 752 328 (668) 9,786 (32)
Other debt securities 85 - - (85) - - - -
Total debt securities 19,492 408 (236) 11,126 500 (801) 30,489 (90)(4)
Marketable equity securities:
Perpetual preferred securities 2,434 160 (7) (1,243) 2 (2) 1,344 (53)
Other marketable equity securities 32 - 1 (10) - - 23 -
Total marketable
equity securities 2,466 160 (6) (1,253) 2 (2) 1,367 (53)(5)
Total available-for-sale
securities 21,958 568 (242) 9,873 502 (803) 31,856 (143)
Mortgages held for sale 3,305 44 - (104) 492 (327) 3,410 43 (6)
Loans 309 13 - (299) - - 23 - (6)
Mortgage servicing rights (residential) (7) 14,467 (5,821) - 3,957 - - 12,603 (3,680)(6)
Net derivative assets and liabilities:
Interest rate contracts 77 4,051 - (3,414) (1) (104) 609 309
Commodity contracts (1) 2 - (9) (3) 11 - 1
Equity contracts (225) 126 - 28 (6) 2 (75) 55
Foreign exchange contracts 9 (8) - (6) 1 (3) (7) (19)
Credit contracts (1,017) (856) - (123) - (2) (1,998) 50
Other derivative contracts (35) (82) - - - - (117) -
Total derivative contracts (1,192) 3,233 - (3,524) (9) (96) (1,588) 396 (8)
Other assets 314 12 - (82) - - 244 3 (3)
Other liabilities (excluding derivatives) (344) (8) - 308 - - (44) - (6)
(1) See next page for detail.
(2) Represents only net gains (losses) that are due to changes in economic conditions and management’s estimates of fair value and excludes changes due to the
collection/realization of cash flows over time.
(3) Included in net gains (losses) from trading activities and other noninterest income in the income statement.
(4) Included in net gains (losses) from debt securities in the income statement.
(5) Included in net gains (losses) from equity investments in the income statement.
(6) Included in mortgage banking and other noninterest income in the income statement.
(7) For more information on the change in mortgage servicing rights, see Note 9.
(8) Included in mortgage banking, trading activities and other noninterest income in the income statement.
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