Wells Fargo 2015 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, 2013
are summarized in Table 17.8.
Table 17.8: Changes in Level 3 Fair Value Assets and Liabilities on a Recurring Basis – 2013
(in millions)
Year ended December 31, 2013
Trading assets (excluding derivatives):
Securities of U.S. states and
political subdivisions
Collateralized loan and other
debt obligations
Corporate debt securities
Mortgage-backed securities
Asset-backed securities
Equity securities
Total trading securities
Other trading assets
Total trading assets (excluding derivatives)
Available-for-sale securities:
Securities of U.S. states and
political subdivisions
Mortgage-backed securities:
Residential
Commercial
Total mortgage-backed securities
Corporate debt securities
Collateralized loan and other
debt obligations
Asset-backed securities:
Auto loans and leases
Home equity loans
Other asset-backed securities
Total asset-backed securities
Total debt securities
Balance,
beginning
of period
$ 46
742
52
6
138
3
987
76
1,063
3,631
94
203
297
274
13,188
5,921
51
3,283
9,255
26,645
Total net gains
(losses) included in
Net
income
Other
compre-
hensive
income
3 —
67 —
9 —
1 —
16 —
— —
96 —
(22) —
74 —
11 (85)
17 (1)
(13) 28
4 27
10 (10)
8 124
(1) (34)
3 (1)
27 19
29 (16)
62 40
Purchases,
sales,
issuances
and
settlements,
net (1)
(10)
(37)
(1)
9
(35)
(3)
(77)
—
(77)
(182)
(40)
(58)
(98)
(13)
625
(1,067)
(5)
31
(1,041)
(709)
Transfers
into
Level 3
—
—
13
—
25
13
51
1
52
53
—
—
—
23
—
—
—
24
24
100
Transfers
out of
Level 3
—
(231)
(20)
(15)
(22)
—
(288)
(1)
(289)
(214)
(6)
(22)
(28)
(3)
(12,525)
(4,327)
(48)
(1,727)
(6,102)
(18,872)
Balance,
end of
period
39
541
53
1
122
13
769
54
823
3,214
64
138
202
281
1,420
492
—
1,657
2,149
7,266
Net unrealized
gains (losses)
included in
income related
to assets and
liabilities held
at period end (2)
—
(33)
6
1
15
—
(11)
(8)
(19) (3)
—
—
(8)
(8)
—
—
—
—
(7)
(7) (4)
(15) (5)
Marketable equity securities:
Perpetual preferred securities 794 10 (2) (73) — — 729 —
Other marketable equity securities — — — — — — — —
Total marketable equity securities 794 10 (2) (73) — — 729 — (6)
Total available-for-sale securities 27,439 72 38 (782) 100 (18,872) 7,995 (15)
Mortgages held for sale 3,250 5 — (874) 336 (343) 2,374 (74) (7)
Loans 6,021 (211) — 106 — (193) 5,723 (178) (7)
Mortgage servicing rights (residential) (8) 11,538 1,156 — 2,886 — — 15,580 3,398 (7)
Net derivative assets and liabilities:
Interest rate contracts 659 (662) — (39) — 2 (40) (186)
Commodity contracts 21 — — (66) (1) 36 (10) (19)
Equity contracts (122) (151) — 137 (14) 104 (46) 48
Foreign exchange contracts 21 (15) — 1 2 — 9 (8)
Credit contracts (1,150) (30) — 805 — — (375) 345
Other derivative contracts (78) 75 — — — — (3) —
Total derivative contracts (649) (783) — 838 (13) 142 (465) 180 (9)
Other assets 162 315 — 1,026 — — 1,503 (2) (3)
Short sale liabilities — — — — — — — — (3)
Other liabilities (excluding derivatives) (49) 3 — 7 — — (39) 5 (7)
(1) See Table 17.9 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) Level 3 transfers out include $6.0 billion in asset-backed securities that were transferred from the available-for-sale portfolio to held-to-maturity securities.
(5) Included in net gains (losses) from debt securities in the income statement.
(6) Included in net gains (losses) from equity investments in the income statement.
(7) Included in mortgage banking and other noninterest income in the income statement.
(8) For more information on the changes in mortgage servicing rights, see Note 9 (Mortgage Banking Activities).
(9) Included in mortgage banking, trading activities, equity investments and other noninterest income in the income statement.
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