Wells Fargo 2013 Annual Report Download - page 227

The changes in Level 3 assets and liabilities measured at fair value on a recurring basis for the year ended December 31, 2012, are
summarized as follows:
Total net gains
(losses) included in
(in millions)
Balance,
beginning
of period
Net
income
Other
compre-
hensive
income
Purchases,
sales,
issuances
and
settlements,
net (1)
Transfers
into
Level 3
Transfers
out of
Level 3
Balance,
end of
period
Net unrealized
gains (losses)
included in
income related
to assets and
liabilities held
at period end (2)
Year ended December 31, 2012
Trading assets
(excluding derivatives):
Securities of U.S. states and
political subdivisions $ 53 3 - (10) - - 46 -
Collateralized loan and other debt obligations 1,582 (191) - (649) - - 742 (47)
Corporate debt securities 97 - - (45) - - 52 (3)
Mortgage-backed securities 108 8 - (110) - - 6 2
Asset-backed securities 190 48 - (98) 14 (16) 138 23
Equity securities 4 - - (1) - - 3 -
Total trading securities 2,034 (132) - (913) 14 (16) 987 (25)
Other trading assets 115 (39) - - - - 76 (19)
Total trading assets
(excluding derivatives) 2,149 (171) - (913) 14 (16) 1,063 (44)(3)
Available-for-sale securities:
Securities of U.S. states and
political subdivisions 11,516 10 160 1,347 - (9,402) 3,631 -
Mortgage-backed securities:
Residential 61 12 16 50 29 (74) 94 (1)
Commercial 232 (56) 57 (30) - - 203 (56)
Total mortgage-backed
securities 293 (44) 73 20 29 (74) 297 (57)
Corporate debt securities 295 20 19 (20) 1 (41) 274 -
Collateralized loan and other debt obligations 8,599 135 514 3,940 - - 13,188 -
Asset-backed securities:
Auto loans and leases 6,641 3 3 (726) - - 5,921 -
Home equity loans 282 15 14 (3) 29 (286) 51 (1)
Other asset-backed securities 2,863 (29) 148 329 1 (29) 3,283 (6)
Total asset-backed securities 9,786 (11) 165 (400) 30 (315) 9,255 (7)
Total debt securities 30,489 110 931 4,887 60 (9,832) 26,645 (64)(4)
Marketable equity securities:
Perpetual preferred securities 1,344 91 (30) (611) - - 794 -
Other marketable equity securities 23 2 (16) (9) - - - -
Total marketable
equity securities 1,367 93 (46) (620) - - 794 - (5)
Total available-for-sale
securities 31,856 203 885 4,267 60 (9,832) 27,439 (64)
Mortgages held for sale 3,410 (42) - (308) 488 (298) 3,250 (30)(6)
Loans 23 43 - 145 5,851 (41) 6,021 43 (6)
Mortgage servicing rights (residential) (7) 12,603 (5,954) - 4,889 - - 11,538 (2,893)(6)
Net derivative assets and liabilities:
Interest rate contracts 609 7,397 - (7,349) - 2 659 562
Commodity contracts - 78 - (50) (8) 1 21 40
Equity contracts (75) (11) - 18 - (54) (122) (16)
Foreign exchange contracts (7) 23 - 5 - - 21 30
Credit contracts (1,998) 38 - 810 - - (1,150) 41
Other derivative contracts (117) 40 (1) - - - (78) -
Total derivative contracts (1,588) 7,565 (1) (6,566) (8) (51) (649) 657 (8)
Other assets 244 (21) - (61) - - 162 (8)(3)
Short sale liabilities - - - - - - - - (3)
Other liabilities (excluding derivatives) (44) (43) - 38 - - (49) - (6)
(1) See next page 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) Included in net gains (losses) debt securities in the income statement.
(5) Included in net gains (losses) from equity investments in the income statement.
(6) Included in mortgage banking and other noninterest income in the income statement.
(7) For more information on the changes in mortgage servicing rights, see Note 9.
(8) Included in mortgage banking, trading activities and other noninterest income in the income statement.
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