Bank of America 2012 Annual Report Download - page 185

Bank of America 2012 183
The gross realized gains and losses on sales of AFS debt
securities for 2012, 2011 and 2010 are presented in the table
below.
Gains and Losses on Sales of AFS Debt Securities
(Dollars in millions) 2012 2011 2010
Gross gains $ 2,128 $ 3,685 $ 3,995
Gross losses (466) (311) (1,469)
Net gains on sales of AFS debt securities $ 1,662 $ 3,374 $ 2,526
Income tax expense attributable to realized
net gains on sales of AFS debt securities $ 615 $ 1,248 $ 935
Certain Corporate and Strategic Investments
At December 31, 2012 and 2011, the Corporation owned 2.0
billion shares representing approximately one percent of China
Construction Bank Corporation (CCB). Sales restrictions on these
shares continue until August 2013. Because the sales restrictions
on these shares will expire within one year, these securities are
accounted for as AFS marketable equity securities and are carried
at fair value with the after-tax unrealized gain included in
accumulated OCI. At December 31, 2011, this investment was
accounted for at cost. The carrying value of the investment at
December 31, 2012 and 2011 was $1.4 billion and $716 million,
and the cost basis and the fair value were $716 million and $1.4
billion for both periods. There is a strategic assistance agreement
between the Corporation and CCB, which includes cooperation in
specific business areas.
The Corporation’s 49 percent investment in a merchant
services joint venture had a carrying value of $3.3 billion and $3.4
billion at December 31, 2012 and 2011. For additional
information, see Note 13 – Commitments and Contingencies.