GE 2015 Annual Report Download - page 214

FINANCIAL STATEMENTS FAIR VALUE MEASUREMENTS
186 GE 2015 FORM 10-K
LEVEL 3 INSTRUMENTS
The majority of our Level 3 balances consist of investment securities classified as available-for-sale with changes in fair value recorded
in VKDUHRZQHUV¶ equity.
CHANGES IN LEVEL 3 INSTRUMENTS FOR THE YEARS ENDED DECEMBER 31
Net
chan
g
e in
Net Net
unrealized
realized/ realized/
g
ains
unrealized unrealized
(
losses
)
g
ains
g
ains relatin
g
to
(
losses
)
(
losses
)
Transfers Transfers
instruments
Balance at included in included into out of Balance at
still held at
(
In millions
)
Januar
y
1 earnin
g
s
(
a
)
in AOCI Purchases Sales Settlements Level 3
(
b
)
Level 3
(
b
)
December 31 December 31
(
c
)
2015
Investment securities
Debt
U.S. corporate
$
3,053
$
3
$
(
165
)
$
362
$
(
80
)
$
(
137
)
$
-
$
(
30
)
$
3,006
$
-
State and municipal 58 -
(
2
)
- -
(
9
)
-
(
17
)
30 -
Mort
g
a
g
e and
asset-backed 146
(
19
)
(
9
)
-
(
32
)
(
4
)
-
(
49
)
32 -
Corporate ± non-U.S. 337 -
(
6
)
9
(
49
)
(
1
)
- - 290 -
Government ± non- 2 - - - - - -
(
2
)
- -
U.S.
g
overnment and
federal a
g
enc
y
266 - 58 - -
(
1
)
- - 323 -
Equit
y
9 2
(
5
)
- -
(
4
)
10 - 13 -
Derivatives
(
d
)(
e
)
29 25 - - -
(
6
)
40 - 88 22
Other 277 8 - -
(
26
)
- - - 259 5
Total
$
4,175
$
19
$
(
128
)
$
370
$
(
187
)
$
(
161
)
$
51
$
(
98
)
$
4,042
$
27
2014
Investment securities
Debt
U.S. corporate
$
2,787
$
18
$
131
$
541
$
(
227
)
$
(
212
)
$
175
$
(
159
)
$
3,053
$
-
State and municipal 50 - 6 3 -
(
1
)
- - 58 -
Mort
g
a
g
e and
asset-backed 238 3 6 -
(
16
)
(
31
)
2
(
57
)
146 -
Corporate ± non-U.S. 515 64 4 167
(
248
)
(
149
)
1
(
19
)
337 -
Government ± non- 30 - - - - - 2
(
30
)
2 -
U.S.
g
overnment and
federal a
g
enc
y
225 - 34 - - - 9
(
2
)
266 -
Equit
y
11 - - 2
(
2
)
- -
(
2
)
9 -
Derivatives
(
d
)(
e
)
11 13 -
(
1
)
- 3 3
(
1
)
29 12
Other 201 85 - 33
(
41
)
- - - 277 73
Total
$
4,068
$
182
$
181
$
744
$
(
534
)
$
(
390
)
$
192
$
(
269
)
$
4,175
$
85
(a) (DUQLQJVHIIHFWVDUHSULPDULO\LQFOXGHGLQWKH³*(&DSLWDOUHYHQXHVIURPVHUYLFHV´DQG³,QWHUHVWDQGRWKHUILQDQFLDOFKDUJHV´ captions in the
Statement of Earnings.
(b) Transfers in and out of Level 3 are considered to occur at the beginning of the period. Transfers out of Level 3 were primarily a result of
increased use of quotes from independent pricing vendors based on recent trading activity.
(c) Represents the amount of unrealized gains or losses for the period included in earnings.
(d) Represents derivative assets net of derivative liabilities and included cash accruals of $13 million and $9 million not reflected in the fair value
hierarchy table during 2015 and 2014, respectively.
(e) Gains (losses) included in net realized/unrealized gains (losses) included in earnings were offset by the earnings effects from the underlying
items that were economically hedged. See Notes 20 and 27.
186 GE 2015 FORM 10-K