Subsequent Events

Update on Securities and Warrant Valuations for the First Quarter of 2014

As previously noted in prior disclosures, SVB and certain equity investment funds managed by SVB Capital, our funds management business, hold warrants as well as direct and indirect investments in FireEye. Since our valuation of those investments as of December 31, 2013, the stock price of FireEye has significantly increased to a closing price of $80.00 as of February 25, 2014 compared to its closing price of $43.61 at December 31, 2013. Based on this incremental increase in stock price thus far during the first quarter of 2014, and certain sales restrictions, if any, in place at March 31, 2014, we would expect to include in our financial results for the first quarter of 2014 total combined pre-tax gains net of noncontrolling interests from our equity warrant assets and our investment securities of approximately $53 million to $63 million. This is comprised of gains from our equity warrant assets of approximately $13 million and gains net of noncontrolling interests from our investment securities of approximately $40 million to $50 million (total gross gains, including noncontrolling interests, would be approximately $200 million to $250 million) for the first quarter of 2014. (This is a non-GAAP financial measure. See reconciliation below.)

Any actual investment gains (or losses) that we would record for the first quarter of 2014 are subject to FireEye’s stock price specifically as of March 31, 2014, which is subject to market conditions and other factors. Given that it is still early in the first quarter, FireEye’s valuation and its estimated impact on our first quarter 2014 financial results, are subject to change, and actual results may differ. Additionally, these gains are currently unrealized gains, and the extent to which such gains will become realized is subject to a variety of factors, including among other things, the expiration of current lock-up agreements to which the securities are subject, the timing of any actual sales of the securities by us, changes in the valuation of the securities, and market conditions.

The table below sets forth a reconciliation of the non-GAAP financial measure discussed above:



	February 25, 2014
Non-GAAP gains on certain other securities, net of noncontrolling interests (dollars in millions)	With sales restrictions discount		Without sales restrictions discount
GAAP gains on certain other securities	$	200	$	250
Less: income attributable to noncontrolling interests, including carried interest	160		200
Non-GAAP gains on certain other securities, net of controlling interests	$	40	$	50