Barclays 2012 Annual Report Download - page 265

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18 Fair value of financial instruments continued
Level 3 movement analysis
The following table summarises the movements in the Level 3 balance during the year. The table shows gains and losses and includes amounts for
all financial assets and liabilities transferred to and from Level 3 during the year. Transfers have been reflected as if they had taken place at the
beginning of the year.
Analysis of movements in Level 3 financial assets and liabilities
Trading
portfolio
assets
£m
Financial
assets
designated at
fair value
£m
Available
for sale
investments
£m
Trading
portfolio
liabilities
£m
Financial
liabilities
designated
at fair value
£m
Net
derivative
financial
instrumentsa
£m
Total
£m
As at 1 January 2012 9,204 8,679 2,873 (6) (3,136) 2,686 20,300
Purchases 3,443 2,972 50 (1) (8) 434 6,890
Sales (4,445) (3,837) (226) 1 29 (138) (8,616)
Issues – – – – (289) (354) (643)
Settlements (744) (915) (57) 1 450 5 (1,260)
Total gains and losses in the period recognised in the
income statement
– trading income 248 (236) (17) – 81 (1,438) (1,362)
– other income (7) 3 – – 44 (109) (69)
Total gains or losses recognised in other comprehensive
income – – (19) – – – (19)
Net transfers (213) (715) 276 3 596 153 100
As at 31 December 2012 7,486 5,951 2,880 (2) (2,233) 1,239 15,321
As at 1 January 2011 5,741 10,904 3,290 (101) (3,637) 2,828 19,025
Purchases 6,863 1,659 74 2 – 420 9,018
Sales (5,390) (2,210) (317) 5 223 (144) (7,833)
Issues – 57 – – (647) (389) (979)
Settlements (190) (2,157) (39) – 523 60 (1,803)
Total gains and losses in the period recognised in the
income statement
– trading income (355) 117 – 2 982 (686) 60
– other income – (12) 90 – 150 – 228
Total gains or losses recognised in other comprehensive
income – – (26) – – – (26)
Net transfers 2,535 321 (199) 86 (730) 597 2,610
As at 31 December 2011 9,204 8,679 2,873 (6) (3,136) 2,686 20,300
The significant movements in the Level 3 positions during the year ended 31 December 2012 are as follows:
 Purchases of £6.9bn primarily comprising £3.6bn in asset backed debt instruments, £1.4bn in commercial real estate loans and £1.0bn in
non-asset backed loans;
 Sales of £8.6bn primarily comprising £4.7bn of asset backed debt instruments, £1.3bn of commercial real estate loans and £1.5bn of private
equity disposals including the sale of an investment in Archstone, an apartment company, for £0.9bn;
 Settlements of £1.3bn including £0.3bn of asset backed debt instruments and £0.7bn in commercial real estate loans; and
 Net losses on the fair value of Level 3 assets recognised in the income statement totalled £1.4bn (31 December 2011: £0.3bn) primarily due to a
reduction in the fair value of monoline and non-monoline credit derivatives.
Note
a The derivative financial instruments are represented on a net basis. On a gross basis derivative financial assets as at 31 December 2012 totalled £6,143m
(2011: £11,267m) and derivative financial liabilities totalled £4,904m (2011: £8,581m).
barclays.com/annualreport Barclays PLC Annual Report 2012 I 263