Fiscal Year 20Y2 Audit Materiality (in millions)
| Materiality | Performance Materiality |
| $150 | $105 |
| Question | Response |
| 1. What's wrong with the fair value of Dandelion investment | |
- What are the wrong or problems on Dandelion investment?
| |
- Possibility on risk assessment
| |
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Figure 1. Company's investment balances as of September 30, 20Y2 (in millions) Book Value Unreal Gains Unreal Losses Fair Value $ 0 $ 2 98 13 1 Description Debt securities U.S. treasury Agency Residential mortgage-backed Mortgage-backed Asset-backed Corporate debt Total debt securities Equity securities Total debt and equity securities $ 733 5,979 866 306 707 1,543 $10,134 403 $ 735 6,076 874 306 710 1,575 $10,276 349 (1) (5) (1) (1) (3) ($11) (58) 4 35 $153 4 $10,537 $157 (569) $10,625 The classification of investment types as of September 30, 20Y2, is consistent with the classifications as of December 31, 20Y1 (e.g., agency securities as of September 30, 20Y2, remained classified as agency securities at December 31, 20Y1). o 0 Figure 2. Fair value (FV) footnote as of September 30, 20Y2 (in millions). This is a partial FV footnote disclosure that excludes other assets, derivatives, and liabilities and shows only the amounts related to the investment portfolio. Description Level 1 Level 2 Level 3 Total Debt securities U.S. treasury $ 695 $ 40 $0 $ 735 Agency 6,076 6,076 Residential mortgage-backed 0 874 874 Mortgage-backed 0 306 306 Asset-backed 710 710 Corporate debt 1,575 1.575 Total debt securities $ 695 $9,581 $10.276 Equity securities 349 Total debt and equity $1,044 $9.581 $0 $10.625 securities The classification of investment types by level as of September 30, 20Y2, is consistent with the classifications as of December 31, 20Y1 (e.g., agency securities were classified as Level 2 as of September 30, 20Y2, and December 31, 20Y1). 0 0 0 349 Figure 1. Company's investment balances as of September 30, 20Y2 (in millions) Book Value Unreal Gains Unreal Losses Fair Value $ 0 $ 2 98 13 1 Description Debt securities U.S. treasury Agency Residential mortgage-backed Mortgage-backed Asset-backed Corporate debt Total debt securities Equity securities Total debt and equity securities $ 733 5,979 866 306 707 1,543 $10,134 403 $ 735 6,076 874 306 710 1,575 $10,276 349 (1) (5) (1) (1) (3) ($11) (58) 4 35 $153 4 $10,537 $157 (569) $10,625 The classification of investment types as of September 30, 20Y2, is consistent with the classifications as of December 31, 20Y1 (e.g., agency securities as of September 30, 20Y2, remained classified as agency securities at December 31, 20Y1). o 0 Figure 2. Fair value (FV) footnote as of September 30, 20Y2 (in millions). This is a partial FV footnote disclosure that excludes other assets, derivatives, and liabilities and shows only the amounts related to the investment portfolio. Description Level 1 Level 2 Level 3 Total Debt securities U.S. treasury $ 695 $ 40 $0 $ 735 Agency 6,076 6,076 Residential mortgage-backed 0 874 874 Mortgage-backed 0 306 306 Asset-backed 710 710 Corporate debt 1,575 1.575 Total debt securities $ 695 $9,581 $10.276 Equity securities 349 Total debt and equity $1,044 $9.581 $0 $10.625 securities The classification of investment types by level as of September 30, 20Y2, is consistent with the classifications as of December 31, 20Y1 (e.g., agency securities were classified as Level 2 as of September 30, 20Y2, and December 31, 20Y1). 0 0 0 349
