US Bank 2013 Annual Report Download - page 136

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The Company is also 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 balances of assets measured at fair value on a nonrecurring basis as of December 31:
2013 2012
(Dollars in Millions) Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total
Loans (a) ..................................... $– $– $128 $128 $– $– $140 $140
Other assets (b) .............................. – – 150 150 – – 194 194
(a) Represents the carrying value of loans for which adjustments were based on the fair value of the collateral, excluding loans fully charged-off.
(b) Primarily represents the fair value of foreclosed properties that were measured at fair value based on an appraisal or broker price opinion of the collateral subsequent to their initial acquisition.
The following table summarizes losses recognized related to nonrecurring fair value measurements of individual assets or
portfolios for the years ended December 31:
(Dollars in Millions) 2013 2012 2011
Loans (a) .......................................................................................................... $83 $ 68 $177
Other assets (b) ................................................................................................... 96 160 316
(a) Represents write-downs of loans which were based on the fair value of the collateral, excluding loans fully charged-off.
(b) Primarily represents related losses of foreclosed properties that were measured at fair value subsequent to their initial acquisition.
Fair Value Option
The following table summarizes the differences between the aggregate fair value carrying amount of MLHFS for which the fair
value option has been elected and the aggregate unpaid principal amount that the Company is contractually obligated to
receive at maturity as of December 31:
2013 2012
(Dollars in Millions)
Fair Value
Carrying
Amount
Aggregate
Unpaid
Principal
Carrying
Amount Over
(Under) Unpaid
Principal
Fair Value
Carrying
Amount
Aggregate
Unpaid
Principal
Carrying
Amount Over
(Under) Unpaid
Principal
Total loans .................................... $3,263 $3,195 $68 $7,957 $7,588 $369
Nonaccrual loans ............................. 9 14 (5) 8 13 (5)
Loans 90 days or more past due.............. – – – 2 3 (1)
Disclosures about Fair Value of Financial Instruments
The following table summarizes the estimated fair value
for financial instruments as of December 31, 2013 and 2012,
and includes financial instruments that are not accounted for
at fair value. In accordance with disclosure guidance related
to fair values of financial instruments, the Company did not
include assets and liabilities that are not financial
instruments, such as the value of goodwill, long-term
relationships with deposit, credit card, merchant processing
and trust customers, other purchased intangibles, premises
and equipment, deferred taxes and other liabilities.
Additionally, in accordance with the disclosure guidance,
insurance contracts and investments accounted for under
the equity method are excluded.
134 U.S. BANCORP