BB&T 2013 Annual Report Download - page 134

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134
Private equity and similar investments: Private equity and similar investments are measured at fair value based on the
investment’s net asset value. In many cases there are no observable market values for these investments and therefore
management must estimate the fair value based on a comparison of the operating performance of the company to multiples in
the marketplace for similar entities. This analysis requires significant judgment and actual values in a sale could differ
materially from those estimated.
Short-term borrowings: Short-term borrowings represent debt securities sold short that are entered into as a hedging strategy
for the purposes of supporting institutional and retail client trading activities.
The following tables summarize activity for level 3 assets and liabilities:
Private
Equity and
Covered Residential Net Similar
Year Ended December 31, 2013 Trading Securities MSRs Derivatives Investments
(Dollars in millions)
Balance at January 1, 2013 $ 1 $ 994 $ 627 $ 54 $ 323
Total realized and unrealized gains (losses):
Included in earnings:
Interest income ― 37 ― ― ―
Mortgage banking income ― ― 229 21 ―
Other noninterest income ― ― ― ― 33
Included in unrealized net holding gains (losses) in OCI ― (14) ― ― ―
Purchases 40 ― ― ― 58
Issuances ― ― 336 65 ―
Sales (41) ― ― ― (59)
Settlements ― (156) (145) (151) (64)
Balance at December 31, 2013 $ ― $ 861 $ 1,047 $ (11) $ 291
Change in unrealized gains (losses) included in earnings for
the period, attributable to assets and liabilities still held
at December 31, 2013 $ ― $ 37 $ 229 $ (11) $ 22
Private
Equity and
Covered Residential Net Similar
Year Ended December 31, 2012 Trading Securities MSRs Derivatives Investments
(Dollars in millions)
Balance at January 1, 2012 $ 1 $ 984 $ 563 $ 59 $ 261
Total realized and unrealized gains (losses):
Included in earnings:
Interest income ― 48 ― ― ―
Mortgage banking income ― ― (32) 458 ―
Other noninterest income ― ― ― ― 21
Included in unrealized net holding gains (losses) in OCI ― 88 ― ― ―
Purchases 4 ― ― ― 101
Issuances ― ― 270 308 ―
Sales (4) ― ― ― (59)
Settlements ― (126) (174) (771) (1)
Balance at December 31, 2012 $ 1 $ 994 $ 627 $ 54 $ 323
Change in unrealized gains (losses) included in earnings for
the period, attributable to assets and liabilities still held
at December 31, 2012 $ ― $ 48 $ (32) $ 54 $ 12