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Fair Value of Financial Instruments (Tables)

3 Months Ended

Mar. 31, 2015

Quantitative Information Regarding The Significant Unobservable Inputs For Certain Assets And Liabilities Measured At Fair Value On A Recurring Basis

		Fair Value
		as of				Range
		March 31,				(Weighted
In millions		2015		Valuation Techniques	Unobservable Input	Average)
Assets of consolidated VIEs:
	Loans receivable at fair value	$	1,480	Market prices adjusted for financial	Impact of financial guarantee	0% - 6% (2%)
				guarantees provided to VIE obligations
	Loan repurchase commitments		385	Discounted cash flow	Recovery rates⁽¹⁾
					Breach rates⁽¹⁾

Liabilities of consolidated VIEs:
	Variable interest entity notes		1,387	Market prices of VIE assets	Impact of financial guarantee	0% - 39% (9%)
				adjusted for financial guarantees provided

Credit derivative liabilities, net:
	CMBS		191	BET Model	Recovery rates	25% - 90% (61%)
					Nonperformance risk	19% - 32% (28%)
					Weighted average life (in years)	1.0 - 2.0 (1.6)
					CMBS spreads	0% - 57% (22%)
	Multi-sector CDO		6	Direct Price Model	Nonperformance risk	50% - 50% (50%)
	Other		10	BET Model and Dual Default	Recovery rates	42% - 45% (45%)
					Nonperformance risk	50% - 50% (50%)
					Weighted average life (in years)	0.5 - 7.8 (1.0)
Other derivative liabilities			21	Discounted cash flow	Cash flows	$0 - $83 ($42)⁽²⁾

____________
(1) - Recovery rates and breach rates include estimates about potential variations in the outcome of litigation with a counterparty.
(2) - Midpoint of cash flows are used for the weighted average.

		Fair Value
		as of				Range
		December 31,				(Weighted
In millions		2014		Valuation Techniques	Unobservable Input	Average)
Assets of consolidated VIEs:
	Loans receivable at fair value	$	1,431	Market prices adjusted for financial	Impact of financial guarantee	0% - 10% (2%)
				guarantees provided to VIE obligations
	Loan repurchase commitments		379	Discounted cash flow	Recovery rates⁽¹⁾
					Breach rates⁽¹⁾

Liabilities of consolidated VIEs:
	Variable interest entity notes		735	Market prices of VIE assets	Impact of financial guarantee	0% - 35% (16%)
				adjusted for financial guarantees provided

Credit derivative liabilities, net:
	CMBS		224	BET Model	Recovery rates	25% - 90% (59%)
					Nonperformance risk	12% - 29% (25%)
					Weighted average life (in years)	1.3 - 3.2 (2.3)
					CMBS spreads	0% - 41% (19%)
	Multi-sector CDO		9	Direct Price Model	Nonperformance risk	53% - 53% (53%)
	Other		11	BET Model and Dual Default	Recovery rates	42% - 45% (45%)
					Nonperformance risk	41% - 51% (50%)
					Weighted average life (in years)	0.2 - 7.9 (1.1)
Other derivative liabilities			24	Discounted cash flow	Cash flows	$0 - $83 ($42)⁽²⁾
	____________
	(1) - Recovery rates and breach rates include estimates about potential variations in the outcome of litigation with a counterparty.
	(2) - Midpoint of cash flows are used for the weighted average.

Company's Assets And Liabilities Measured At Fair Value On Recurring Basis

				Fair Value Measurements at Reporting Date Using
				Quoted Prices in		Significant
				Active Markets		Other		Significant			Counterparty
				for Identical		Observable		Unobservable			and Cash		Balance as of
				Assets		Inputs		Inputs			Collateral		March 31,
In millions				(Level 1)		(Level 2)		(Level 3)			Netting		2015
Assets:
Fixed-maturity investments:
	U.S. Treasury and government agency			$	624	$	120	$	-		$	-	$	744
	State and municipal bonds				-		1,750		6	⁽¹⁾		-		1,756
	Foreign governments				210		80		6	⁽¹⁾		-		296
	Corporate obligations				-		2,088		10	⁽¹⁾		-		2,098
	Mortgage-backed securities:
		Residential mortgage-backed agency			-		1,129		-			-		1,129
		Residential mortgage-backed non-agency			-		52		-			-		52
		Commercial mortgage-backed			-		22		1	⁽¹⁾		-		23
	Asset-backed securities:
		Collateralized debt obligations			-		1		74	⁽¹⁾		-		75
		Other asset-backed			-		271		74	⁽¹⁾		-		345
			Total fixed-maturity investments		834		5,513		171			-		6,518
Money market securities					240		-		-			-		240
Perpetual debt and equity securities					24		27		-			-		51
Cash and cash equivalents					596		-		-			-		596
Derivative assets:
	Non-insured derivative assets:
		Interest rate derivatives			-		2		-			(1)		1

				Fair Value Measurements at Reporting Date Using
				Quoted Prices in		Significant
				Active Markets		Other		Significant			Counterparty
				for Identical		Observable		Unobservable			and Cash		Balance as of
				Assets		Inputs		Inputs			Collateral		March 31,
In millions				(Level 1)		(Level 2)		(Level 3)			Netting		2015
Assets of consolidated VIEs:
	Corporate obligations				-		10		53	⁽¹⁾		-		63
	Mortgage-backed securities:
		Residential mortgage-backed non-agency			-		189		3	⁽¹⁾		-		192
		Commercial mortgage-backed			-		737		-			-		737
	Asset-backed securities:
		Collateralized debt obligations			-		2		4	⁽¹⁾		-		6
		Other asset-backed			-		42		21	⁽¹⁾		-		63
	Cash				31		-		-			-		31
	Loans receivable at fair value:
		Residential loans receivable			-		-		1,372			-		1,372
		Other loans receivable			-		-		108			-		108
	Loan repurchase commitments				-		-		385			-		385
	Derivative assets:
		Currency derivatives			-		-		5	⁽¹⁾		-		5
Total assets				$	1,725	$	6,522	$	2,122		$	(1)	$	10,368
Liabilities:
Medium-term notes				$	-	$	-	$	180	⁽¹⁾	$	-	$	180
Derivative liabilities:
	Insured derivatives:
		Credit derivatives			-		3		207			-		210
	Non-insured derivatives:
		Interest rate derivatives			-		269		-			(109)		160
		Other			-		-		21			-		21
Other liabilities:
	Warrants				-		33		-			-		33
	Investments payable				36		-		-			-		36
Liabilities of consolidated VIEs:
	Variable interest entity notes				-		1,266		1,387			-		2,653
	Derivative liabilities:
		Interest rate derivatives			-		76		-			-		76
Total liabilities				$	36	$	1,647	$	1,795		$	(109)	$	3,369
____________
(1) - Unobservable inputs are either not developed by the Company or do not significantly impact the overall fair values of the aggregate financial assets and liabilities.

				Fair Value Measurements at Reporting Date Using
				Quoted Prices in		Significant
				Active Markets		Other		Significant			Counterparty
				for Identical		Observable		Unobservable			and Cash		Balance as of
				Assets		Inputs		Inputs			Collateral		December 31,
In millions				(Level 1)		(Level 2)		(Level 3)			Netting		2014
Assets:
Fixed-maturity investments:
	U.S. Treasury and government agency			$	573	$	118	$	-		$	-	$	691
	State and municipal bonds				-		1,724		8	⁽¹⁾		-		1,732
	Foreign governments				221		63		6	⁽¹⁾		-		290
	Corporate obligations				-		2,048		10	⁽¹⁾		-		2,058
	Mortgage-backed securities:
		Residential mortgage-backed agency			-		1,162		-			-		1,162
		Residential mortgage-backed non-agency			-		56		-			-		56
		Commercial mortgage-backed			-		20		2	⁽¹⁾		-		22
	Asset-backed securities:
		Collateralized debt obligations			-		6		87	⁽¹⁾		-		93
		Other asset-backed			-		156		85	⁽¹⁾		-		241
			Total fixed-maturity investments		794		5,353		198			-		6,345
Money market securities					428		-		-			-		428
Perpetual debt and equity securities					22		31		-			-		53
Cash and cash equivalents					729		-		-			-		729
Derivative assets:
	Non-insured derivative assets:
		Interest rate derivatives			-		83		-			(81)		2
Assets held for sale:
	Equity securities				6		-		-			-		6
	Loans receivable at fair value				-		711		-			-		711
	Cash and cash equivalents				55		-		-			-		55

				Fair Value Measurements at Reporting Date Using
				Quoted Prices in		Significant
				Active Markets		Other		Significant			Counterparty
				for Identical		Observable		Unobservable			and Cash		Balance as of
				Assets		Inputs		Inputs			Collateral		December 31,
In millions				(Level 1)		(Level 2)		(Level 3)			Netting		2014
Assets of consolidated VIEs:
	Corporate obligations				-		10		55	⁽¹⁾		-		65
	Mortgage-backed securities:
		Residential mortgage-backed non-agency			-		194		3	⁽¹⁾		-		197
		Commercial mortgage-backed			-		86		-			-		86
	Asset-backed securities:
		Collateralized debt obligations			-		7		5	⁽¹⁾		-		12
		Other asset-backed			-		35		26	⁽¹⁾		-		61
	Cash				53		-		-			-		53
	Loans receivable at fair value:
		Residential loans receivable			-		-		1,431			-		1,431
	Loan repurchase commitments				-		-		379			-		379
Total assets				$	2,087	$	6,510	$	2,097		$	(81)	$	10,613
Liabilities:
Medium-term notes				$	-	$	-	$	197	⁽¹⁾	$	-	$	197
Derivative liabilities:
	Insured derivatives:
		Credit derivatives			-		2		244			-		246
	Non-insured derivatives:
		Interest rate derivatives			-		248		-			(81)		167
		Other			-		-		24			-		24
Liabilities held for sale:
	Variable interest entity notes				-		431		-			-		431
	Payable for loans purchased				-		323		-			-		323
Other liabilities:
	Warrants				-		28		-			-		28
Liabilities of consolidated VIEs:
	Variable interest entity notes				-		1,312		735			-		2,047
Total liabilities				$	-	$	2,344	$	1,200		$	(81)	$	3,463
____________
(1) - Unobservable inputs are either not developed by the Company or do not significantly impact the overall fair values of the aggregate financial assets and liabilities.

Fair Value Hierarchy Table Presents The Company's Assets And Liabilities Not Recorded At Fair Value On The Company's Consolidated Balance Sheet

		Fair Value Measurements at Reporting Date Using
		Quoted Prices in		Significant		Significant		Fair Value		Carry Value
		Active Markets for		Other Observable		Unobservable		Balance as of		Balance as of
		Identical Assets		Inputs		Inputs		March 31,		March 31,
In millions		(Level 1)		(Level 2)		(Level 3)		2015		2015
Assets:
	Other investments	$	-	$	-	$	4	$	4	$	4
	Accrued investment income⁽¹⁾		-		43		-		43		43
	Receivable for investments sold⁽¹⁾		-		67		-		67		67
Assets held for sale:
	Facility		-		22		-		22		22
Assets of consolidated VIEs:
	Investments held-to-maturity		-		-		2,635		2,635		2,742
Total assets		$	-	$	132	$	2,639	$	2,771	$	2,878
Liabilities:
	Investment agreements	$	-	$	-	$	711	$	711	$	538
	Medium-term notes		-		-		753		753		928
	Long-term debt		-		1,113		-		1,113		1,828
	Payable for investments purchased⁽²⁾		-		71		-		71		71
Liabilities of consolidated VIEs:
	Variable interest entity notes		-		-		2,776		2,776		2,742
Total liabilities		$	-	$	1,184	$	4,240	$	5,424	$	6,107
Financial Guarantees:
	Gross	$	-	$	-	$	3,874	$	3,874	$	1,846
	Ceded		-		-		103		103		61
__________
(1) - Reported within "Other assets" on MBIA's consolidated balance sheets.
(2) - Reported within "Other liabilities" on MBIA's consolidated balance sheets.

		Fair Value Measurements at Reporting Date Using
		Quoted Prices in		Significant		Significant		Fair Value		Carry Value
		Active Markets for		Other Observable		Unobservable		Balance as of		Balance as of
		Identical Assets		Inputs		Inputs		December 31,		December 31,
In millions		(Level 1)		(Level 2)		(Level 3)		2014		2014
Assets:
	Other investments	$	-	$	-	$	4	$	4	$	4
	Accrued investment income⁽¹⁾		-		43		-		43		43
	Receivable for investments sold⁽¹⁾		-		69		-		69		69
Assets held for sale
	Facility		-		26		-		26		26
Assets of consolidated VIEs:
	Investments held-to-maturity		-		-		2,632		2,632		2,757
Total assets		$	-	$	138	$	2,636	$	2,774	$	2,899
Liabilities:
	Investment agreements	$	-	$	-	$	705	$	705	$	547
	Medium-term notes		-		-		801		801		1,004
	Long-term debt		-		1,172		-		1,172		1,810
	Payable for investments purchased⁽²⁾		-		42		-		42		42
Liabilities of consolidated VIEs:
	Variable interest entity notes		-		-		2,779		2,779		2,757
Total liabilities		$	-	$	1,214	$	4,285	$	5,499	$	6,160
Financial Guarantees:
	Gross	$	-	$	-	$	4,051	$	4,051	$	1,959
	Ceded		-		-		109		109		65
__________
(1) - Reported within "Other assets" on MBIA's consolidated balance sheets.
(2) - Reported within "Other liabilities" on MBIA's consolidated balance sheets.

Changes In Level 3 Assets Measured At Fair Value On A Recurring Basis

Changes in Level 3 Assets and Liabilities Measured at Fair Value on a Recurring Basis for the Three Months Ended March 31, 2015
																									Change in
																									Unrealized
																									Gains
																									(Losses) for
																									the Period
																									Included in
					Unrealized																				Earnings
					Gains /		Unrealized		Foreign																for Assets
					(Losses)		Gains /		Exchange																still held
	Balance,		Realized		Included		(Losses)		Recognized										Transfers		Transfers				as of
	Beginning		Gains /		in		Included		in OCI or										into		out of		Ending		March 31,
In millions	of Period		(Losses)		Earnings		in OCI		Earnings		Purchases		Issuances		Settlements		Sales		Level 3⁽¹⁾		Level 3⁽¹⁾		Balance		2015
Assets:
Foreign governments	$	6	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	6	$	-
Corporate obligations		10		-		-		-		-		-		-		-		-		-		-		10		-
Commercial
mortgage-backed		2		-		-		-		-		-		-		-		-		-		(1)		1		-
Collateralized debt
obligations		87		-		-		-		-		-		-		(5)		(8)		-		-		74		-
Other asset-backed		85		(2)		-		(1)		-		4		-		(2)		(8)		-		(2)		74		-
State and municipal
bonds		8		-		-		-		-		-		-		-		-		-		(2)		6		-
Assets of
consolidated VIEs:
Corporate obligations		55		-		-		-		-		-		-		(2)		-		-		-		53		-
Residential mortgage-
backed non-agency		3		-		1		-		-		-		-		(1)		-		-		-		3		1
Collateralized debt
obligations		5		-		(1)		-		-		-		-		-		-		-		-		4		-
Other asset-backed		26		-		3		-		-		-		-		(2)		-		-		(6)		21		3
Loans receivable-
residential		1,431		-		(3)		-		-		-		-		(56)		-		-		-		1,372		(3)
Loans receivable- Other		-		-		-		-		-		108		-		-		-		-		-		108		-
Loan repurchase
commitments		379		-		6		-		-		-		-		-		-		-		-		385		6
Currency
derivatives, net		-		-		4		-		1		-		-		-		-		-		-		5		5
Total assets	$	2,097	$	(2)	$	10	$	(1)	$	1	$	112	$	-	$	(68)	$	(16)	$	-	$	(11)	$	2,122	$	12

Changes in Level 3 Assets and Liabilities Measured at Fair Value on a Recurring Basis for the Three Months Ended March 31, 2014
																									Change in
																									Unrealized
																									Gains
																									(Losses) for
																									the Period
																									Included in
					Unrealized																				Earnings for
					Gains /		Unrealized		Foreign																Assets
					(Losses)		Gains /		Exchange																still held
	Balance,		Realized		Included		(Losses)		Recognized										Transfers		Transfers				as of
	Beginning		Gains /		in		Included		in OCI or										into		out of		Ending		March 31,
In millions	of Period		(Losses)		Earnings		in OCI		Earnings		Purchases		Issuances		Settlements		Sales		Level 3⁽¹⁾		Level 3⁽¹⁾		Balance		2014
Assets:
Foreign governments	$	12	$	-	$	-	$	-	$	-	$	-	$	-	$	(5)	$	-	$	-	$	-	$	7	$	-
Corporate obligations		48		(1)		1		(1)		-		-		-		(1)		(19)		3		-		30		-
Residential mortgage-
backed agency		-		-		-		-		-		-		-		-		-		29		-		29		-
Residential mortgage-
backed non-agency		6		-		-		(1)		-		-		-		-		-		-		(5)		-		-
Commercial
mortgage-backed		14		-		-		-		-		-		-		(1)		-		1		-		14		-
Collateralized debt
obligations		82		-		-		3		-		5		-		(2)		-		33		(6)		115		-
Other asset-backed		58		-		-		5		-		-		-		(2)		-		24		-		85		-
State and municipal
bonds		19		-		-		-		-		-		-		(1)		-		44		-		62		-
Perpetual debt and equity securities		11		-		-		-		-		-		-		-		-		4		-		15		-
Assets of
consolidated VIEs:
Corporate obligations		48		-		-		-		-		-		-		(1)		-		17		-		64		1
Residential mortgage-
backed non-agency		4		-		-		-		-		-		-		-		-		1		-		5		-
Commercial
mortgage-backed		3		-		-		-		-		-		-		-		-		-		-		3		-
Collateralized debt
obligations		22		-		(3)		-		-		-		-		(2)		-		-		(3)		14		(1)
Other asset-backed		54		-		(12)		-		-		-		-		(4)		-		4		-		42		-
Loans receivable		1,612		-		(1)		-		-		-		-		(54)		-		-		-		1,557		(1)
Loan repurchase
commitments		359		-		5		-		-		-		-		-		-		-		-		364		5
Total assets	$	2,352	$	(1)	$	(10)	$	6	$	-	$	5	$	-	$	(73)	$	(19)	$	160	$	(14)	$	2,406	$	4

Changes In Level 3 Liabilities Measured At Fair Value On A Recurring Basis

																									Change in
																									Unrealized
																									(Gains)
																									Losses for
																									the Period
																									Included in
					Unrealized																				Earnings for
					(Gains) /		Unrealized		Foreign																Liabilities
					Losses		(Gains) /		Exchange																still held
	Balance,		Realized		Included		Losses		Recognized										Transfers		Transfers				as of
	Beginning		(Gains) /		in		Included		in OCI or										into		out of		Ending		March 31,
In millions	of Period		Losses		Earnings		in OCI		Earnings		Purchases		Issuances		Settlements		Sales		Level 3⁽¹⁾		Level 3⁽¹⁾		Balance		2015
Liabilities:
Medium-term notes	$	197	$	-	$	5	$	-	$	(22)	$	-	$	-	$	-	$	-	$	-	$	-	$	180	$	(17)
Credit derivatives, net		244		9		(37)		-		-		-		-		(9)		-		-		-		207		(37)
Other
derivatives		24		-		(3)		-		-		-		-		-		-		-		-		21		(3)
Liabilities of
consolidated VIEs:
VIE notes		735		-		8		-		-		695		-		(51)		-		-		-		1,387		8
Total liabilities	$	1,200	$	9	$	(27)	$	-	$	(22)	$	695	$	-	$	(60)	$	-	$	-	$	-	$	1,795	$	(49)
_______________
(1) - Transferred in and out at the end of the period.

																									Change in
																									Unrealized
																									(Gains)
																									Losses for
																									the Period
																									Included in
					Unrealized																				Earnings for
					(Gains) /		Unrealized		Foreign																Liabilities
					Losses		(Gains) /		Exchange																still held
	Balance,		Realized		Included		Losses		Recognized										Transfers		Transfers				as of
	Beginning		(Gains) /		in		Included		in OCI or										into		out of		Ending		March 31,
In millions	of Period		Losses		Earnings		in OCI		Earnings		Purchases		Issuances		Settlements		Sales		Level 3⁽¹⁾		Level 3⁽¹⁾		Balance		2014
Liabilities:
Medium-term notes	$	203	$	-	$	12	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	215	$	12
Credit derivatives, net		1,147		339		(838)		-		-		-		-		(339)		-		-		-		309		(30)
Other
derivatives, net		-		30		1		-		-		-		-		-		-		-		-		31		1
Liabilities of
consolidated VIEs:
VIE notes		940		-		18		-		-		-		-		(105)		(41)		-		-		812		16
Currency derivatives,
net		11		-		(6)		-		-		-		-		-		-		-		-		5		(6)
Total liabilities	$	2,301	$	369	$	(813)	$	-	$	-	$	-	$	-	$	(444)	$	(41)	$	-	$	-	$	1,372	$	(7)
_______________
(1) - Transferred in and out at the end of the period.

Gains And Losses (Realized And Unrealized) Included In Earnings Pertaining To Level 3 Assets And Liabilities


		Three Months Ended March 31, 2015				Three Months Ended March 31, 2014
				Change in				Change in
				Unrealized				Unrealized
				Gains (Losses)				Gains (Losses)
				for the				for the
				Period Included				Period Included
				in Earnings				in Earnings
				for Assets				for Assets
				and				and
		Total Gains		Liabilities still		Total Gains		Liabilities still
		(Losses)		held as of		(Losses)		held as of
		Included		March 31,		Included		March 31,
In millions		in Earnings		2015		in Earnings		2014
Revenues:
	Unrealized gains (losses) on
	insured derivatives	$	37	$	37	$	838	$	30
	Realized gains (losses) and other
	settlements on insured derivatives		(9)		-		(369)		-
	Net gains (losses) on financial instruments
	at fair value and foreign exchange		18		20		(13)		(13)
	Revenues of consolidated VIEs:
	Net gains (losses) on financial instruments
	at fair value and foreign exchange		3		4		(23)		(6)
Total		$	49	$	61	$	433	$	11

Changes In Fair Value Included In The Company's Consolidated Statements Of Operations


		Three Months Ended March 31,
In millions		2015			2014
Investments carried at fair value		$	-		$	1	⁽¹⁾
Fixed-maturity securities held at fair value- VIE			(17)	⁽²⁾		(38)	⁽²⁾
Loans receivable at fair value:
	Residential mortgage loans		(58)	⁽²⁾		(56)	⁽²⁾
Loan repurchase commitments			6	⁽²⁾		5	⁽²⁾
Medium-term notes			17	⁽¹⁾		(12)	⁽¹⁾
Variable interest entity notes			89	⁽²⁾		121	⁽²⁾
_____________
(1) - Reported within "Net gains (losses) of financial instruments at fair value and foreign exchange" on MBIA's consolidated statements of operations.
(2) - Reported within "Net gains (losses) of financial instruments at fair value and foreign exchange-VIE" on MBIA's consolidated statements of operations.

Difference Between Aggregate Fair Value And The Aggregate Remaining Contractual Principal Balance Outstanding

		As of March 31, 2015							As of December 31, 2014
		Contractual						Contractual
		Outstanding		Fair				Outstanding		Fair
In millions		Principal		Value		Difference		Principal		Value		Difference
Loans receivable at fair value:
	Residential mortgage loans	$	1,478	$	1,320	$	158	$	1,554	$	1,377	$	177
	Residential mortgage loans (90 days or more past due)		220		52		168		227		54		173
	Other loans		108		108		-		721		711		10
	Other loans (90 days or more past due)		70		-		70		-		-		-
Total loans receivable at fair value		$	1,876	$	1,480	$	396	$	2,502	$	2,142	$	360

Variable interest entity notes		$	4,000	$	2,653	$	1,347	$	3,584	$	2,479	$	1,105

Medium-term notes		$	215	$	180	$	35	$	242	$	197	$	45

- Definition

Tabular disclosure of financial instruments measured at fair value, including those classified in shareholders' equity measured on a recurring or nonrecurring basis. Disclosures include, but are not limited to, fair value measurements recorded and the reasons for the measurements, level within the fair value hierarchy in which the fair value measurements are categorized and transfers between levels 1 and 2. Nonrecurring fair value measurements are those that are required or permitted in the statement of financial position in particular circumstances.

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- Definition

Tabular disclosure of the fair value measurement of assets using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances, separately presenting changes during the period attributable to the following: (1) total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings (or changes in net assets) and gains or losses recognized in other comprehensive income (loss), and a description of where those gains or losses included in earnings (or changes in net assets) are reported in the statement of income (or activities); (2) purchases, sales, issues, and settlements (each type disclosed separately); and (3) transfers in and transfers out of Level 3 (for example, transfers due to changes in the observability of significant inputs), by class of asset.

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- Definition

Tabular disclosure of the fair value measurement of liabilities using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances, separately presenting changes attributable to the following: (1) total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings (or changes in net assets), and gains or losses recognized in other comprehensive income (loss) and a description of where those gains or losses included in earnings (or changes in net assets) are reported in the statement of income (or activities); (2) purchases, sales, issues, and settlements (each type disclosed separately); and (3) transfers in and transfers out of Level 3 (for example, transfers due to changes in the observability of significant inputs) by class of liability.

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- Definition

Tabular disclosure of the application of the fair value option for measurement and reporting of eligible financial assets and liabilities (as defined), as well as certain other eligible items (as defined) included in the statement of financial position, whether such option is elected for a single eligible item or a group of similar eligible items and is in addition to other disclosures concerning fair value which the company may be required to provide. Such disclosure might be expected to include: (1) for items included in the statement of financial position: (a) for each line item in the statement of financial position that includes an item or items for which the fair value option has been elected, provide the aggregate carrying amount of ineligible items included in each line item in the balance sheet, if any; (b) the difference between the aggregate fair value and the aggregate unpaid principal balance (assuming contractual principal amounts and fair value option elected) of: (i) loans and long-term receivables (other than securities otherwise reported at fair value) and (ii) long-term debt instruments; (c) for loans held as assets for which the fair value option has been elected: (i) the aggregate fair value of loans that are 90 days or more past due, (ii) if the policy is to recognize interest income separately from other changes in fair value, the aggregate fair value of loans in nonaccrual status, and (iii) the difference between the aggregate fair value and the aggregate unpaid principal balance for loans that are 90 days or more past due, in nonaccrual status, or both; (2) for items included in the income statement: (a) the amounts of gains and losses from fair value changes included in earnings and in which line in the income statement those gains and losses are reported whether or not combined with gains and losses from items required to be accounted for at fair value; (b) for loans and other receivables held as assets, the estimated amount of gains or losses included in earnings attributable to changes in instrument-specific credit risk; (c) for liabilities with fair values that have been significantly affected during the reporting period by changes in the instrument-specific credit risk, the estimated amount of gains and losses from fair value changes included in earnings that are attributable to changes in the instrument-specific credit risk; and (3) certain other disclosures as required or determined to be provided.

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