Wells Fargo 2014 Annual Report Download - page 226

Note 17: Fair Values of Assets and Liabilities (continued)
(continued from previous page)
The following table presents gross purchases, sales, issuances and settlements related to the changes in Level 3 assets and liabilities
measured at fair value on a recurring basis for the year ended December 31, 2012.
(in millions) Purchases Sales Issuances Settlements Net
Year ended December 31, 2012
Trading assets (excluding derivatives):
Securities of U.S. states and political subdivisions $ 85 (95) — — (10)
Collateralized loan and other debt obligations 829 (1,478) — — (649)
Corporate debt securities 192 (237) — — (45)
Mortgage-backed securities 49 (159) — — (110)
Asset-backed securities 116 (169) — (45) (98)
Equity securities 1 (2) — — (1)
Total trading securities 1,272 (2,140) — (45) (913)
Other trading assets — — — — —
Total trading assets (excluding derivatives) 1,272 (2,140) — (45) (913)
Available-for-sale securities:
Securities of U.S. states and political subdivisions 1,847 (37) 1,011 (1,474) 1,347
Mortgage-backed securities:
Residential 86 (34) — (2) 50
Commercial 39 — — (69) (30)
Total mortgage-backed securities 125 (34) — (71) 20
Corporate debt securities 26 (37) — (9) (20)
Collateralized loan and other debt obligations 5,608 (185) — (1,483) 3,940
Asset-backed securities:
Auto loans and leases 3,004 — 666 (4,396) (726)
Home equity loans — (2) — (1) (3)
Other asset-backed securities 2,074 (159) 1,401 (2,987) 329
Total asset-backed securities 5,078 (161) 2,067 (7,384) (400)
Total debt securities 12,684 (454) 3,078 (10,421) 4,887
Marketable equity securities:
Perpetual preferred securities — — — (611) (611)
Other marketable equity securities — (8) — (1) (9)
Total marketable equity securities — (8) — (612) (620)
Total available-for-sale securities 12,684 (462) 3,078 (11,033) 4,267
Mortgages held for sale 441 — — (749) (308)
Loans 2 — 257 (114) 145
Mortgage servicing rights (residential) — (293) 5,182 — 4,889
Net derivative assets and liabilities:
Interest rate contracts 11 — — (7,360) (7,349)
Commodity contracts — (2) — (48) (50)
Equity contracts 386 (375) 1 6 18
Foreign exchange contracts 2 (3) — 6 5
Credit contracts (6) 3 — 813 810
Other derivative contracts — — — — —
Total derivative contracts 393 (377) 1 (6,583) (6,566)
Other assets 19 (8) — (72) (61)
Short sale liabilities 9 (9) — — —
Other liabilities (excluding derivatives) (3) 11 (216) 246 38
The following table provides quantitative information about
the valuation techniques and significant unobservable inputs
used in the valuation of substantially all of our Level 3 assets and
liabilities measured at fair value on a recurring basis for which
we use an internal model.
The significant unobservable inputs for Level 3 assets and
liabilities that are valued using fair values obtained from third-
party vendors are not included in the table as the specific inputs
applied are not provided by the vendor (see discussion regarding
vendor-developed valuations within the “Level 3 Asset and
Liability Valuation Processes” section previously within this
Note). In addition, the table excludes the valuation techniques
and significant unobservable inputs for certain classes of Level 3
assets and liabilities measured using an internal model that we
consider, both individually and in the aggregate, insignificant
relative to our overall Level 3 assets and liabilities. We made this
determination based upon an evaluation of each class which
considered the magnitude of the positions, nature of the
unobservable inputs and potential for significant changes in fair
value due to changes in those inputs.
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