US Bank 2009 Annual Report Download - page 117

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The table below presents the changes in fair value for all assets and liabilities measured at fair value on a recurring basis using
significant unobservable inputs (Level 3).
Year Ended December 31, (Dollars in Millions)
Beginning
of Period
Balance
Net Gains
(Losses)
Included in
Net Income
Net Gains
(Losses)
Included in
Other
Comprehensive
Income (Loss)
Purchases,
Sales, Principal
Payments,
Issuances and
Settlements
Transfers into
Level 3
End
of Period
Balance
Net Change in
Unrealized Gains
(Losses) Relating
to Assets
Still Held at
End of Period
2009
Available-for-sale securities
Mortgage-backed securities
Residential non-agency
Prime . . . . . . . . . . . . . . . . . . . $ 183 $ (4) $542 $(1,540) $2,248 $1,429 $ 358
Non-prime . . . . . . . . . . . . . . . . 1,022 (141) 151 (197) 133 968 29
Commercial . . . . . . . . . . . . . . . . 17 (1) (1) (3) 1 13 (1)
Asset-backed securities
Collateralized debt
obligations/Collateralized loan
obligations . . . . . . . . . . . . . . . . 86 (3) 2 9 4 98 3
Other . . . . . . . . . . . . . . . . . . . . . 523 (180) 101 (90) 3 357 3
Corporate debt securities . . . . . . . . . 13 (3) – – – 10 –
Other securities and investments . . . . – 2 (10) (4) 243 231 (10)
Total available-for-sale . . . . . . . . 1,844 (330) (a) 785 (1,825) 2,632 3,106 382
Mortgage servicing rights . . . . . . . . . . . 1,194 (394) (b) – 949 – 1,749 (394) (b)
Net other assets and liabilities. . . . . . . . 1,698 (755) (c) – (129) 1 815 (1,328) (d)
2008
Available-for-sale securities . . . . . . . . . $2,923 $ (781) (a) $ (74) $ (887) 663 $1,844 $ (397)
Mortgage servicing rights . . . . . . . . . . . 1,462 (835) (b) – 567 – 1,194 (835) (b)
Net other assets and liabilities. . . . . . . . 338 1,296 (e) – 58 6 1,698 (92) (f)
(a) Included in securities gains (losses)
(b) Included in mortgage banking revenue.
(c) Approximately $(1.4) billion included in other noninterest income and $611 million included in mortgage banking revenue.
(d) Approximately $(630) million included in other noninterest income and $(698) million included in mortgage banking revenue.
(e) Approximately $1.1 billion included in other noninterest income and $167 million included in mortgage banking revenue.
(f) Approximately $1 million included in other noninterest income and $(93) million included in mortgage banking revenue.
The Company may also be required periodically to measure certain other financial assets at fair value on a nonrecurring
basis. These measurements of fair value usually result from the application of lower-of-cost-or-fair-value accounting or write-
downs of individual assets. The following table summarizes the adjusted carrying values and the level of valuation assumptions
for assets measured at fair value on a nonrecurring basis at December 31:
(Dollars in Millions) Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total
2009 2008
Loans held for sale . . . . . . . . . . . . $– $276 $– $276 $– $ 12 $– $ 12
Loans (a) . . . . . . . . . . . . . . . . . . – 235 5 240 – 117 – 117
Other real estate owned (b) . . . . . . – 183 – 183 – 66 – 66
Other intangible assets . . . . . . . . . – – 3 3 – – 1 1
(a) Represents carrying value of loans for which adjustments are based on the appraised value of the collateral, excluding loans fully charged-off.
(b) Represents the fair value of foreclosed properties that were measured at fair value subsequent to their initial acquisition.
U.S. BANCORP 115