Wells Fargo 2015 Annual Report Download - page 230

Note 17: Fair Values of Assets and Liabilities (continued)
(continued from previous page)
Table 17.9 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, 2013.
Table 17.9: Gross Purchases, Sales, Issuances and Settlements – Level 3 – 2013
(in millions) Purchases Sales Issuances Settlements Net
Year ended December 31, 2013
Trading assets (excluding derivatives):
Securities of U.S. states and political subdivisions $ 127 (136) — (1) (10)
Collateralized loan and other debt obligations 1,030 (1,064) — (3) (37)
Corporate debt securities 117 (117) — (1) (1)
Mortgage-backed securities 429 (420) — — 9
Asset-backed securities 53 (45) — (43) (35)
Equity securities — (3) — — (3)
Total trading securities 1,756 (1,785) — (48) (77)
Other trading assets — — — — —
Total trading assets (excluding derivatives) 1,756 (1,785) — (48) (77)
Available-for-sale securities:
Securities of U.S. states and political subdivisions — (69) 648 (761) (182)
Mortgage-backed securities:
Residential — (37) — (3) (40)
Commercial — (1) — (57) (58)
Total mortgage-backed securities — (38) — (60) (98)
Corporate debt securities — — 20 (33) (13)
Collateralized loan and other debt obligations 1,008 (14) — (369) 625
Asset-backed securities:
Auto loans and leases 1,751 — 1,047 (3,865) (1,067)
Home equity loans — (5) — — (5)
Other asset-backed securities 1,164 (36) 1,116 (2,213) 31
Total asset-backed securities 2,915 (41) 2,163 (6,078) (1,041)
Total debt securities 3,923 (162) 2,831 (7,301) (709)
Marketable equity securities:
Perpetual preferred securities — (20) — (53) (73)
Other marketable equity securities — — — — —
Total marketable equity securities — (20) — (53) (73)
Total available-for-sale securities 3,923 (182) 2,831 (7,354) (782)
Mortgages held for sale 286 (574) — (586) (874)
Loans 23 — 452 (369) 106
Mortgage servicing rights (residential) — (583) 3,469 — 2,886
Net derivative assets and liabilities:
Interest rate contracts — — — (39) (39)
Commodity contracts — — — (66) (66)
Equity contracts — (148) — 285 137
Foreign exchange contracts — — — 1 1
Credit contracts 7 (5) (4) 807 805
Other derivative contracts — — — — —
Total derivative contracts 7 (153) (4) 988 838
Other assets 1,064 (2) — (36) 1,026
Short sale liabilities 8 (8) — — —
Other liabilities (excluding derivatives) — — (4) 11 7
Table 17.10 and Table 17.11 provide 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 that
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.
Wells Fargo & Company
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