Notes to consolidated financial statements Assets and liabilities measured at fair value on a nonrecurring basis The following tables present the assets held as of December 31, 2018 and 2017, respectively, for which a nonrecurring fair value adjustment was recorded during the years ended December 31, 2018 and 2017, respectively, by major product category and fair value hierarchy. There were no material liabilities measured at fair value on a nonrecurring basis at December 31, 2018 and 2017. The following table presents the total change in value of assets and liabilities for which a fair value adjustment has been recognized for the years ended December 31, 2018, 2017 and 2016, related to financial instruments held at those dates. For further information about the measurement of impaired collateral- dependent loans, and other loans where the carrying value is based on the fair value of the underlying collateral (e.g., residential mortgage loans charged off in accordance with regulatory guidance), refer to Note 12. (b) Of the $264 million in level 3 assets measured at fair value on a nonrecurring basis as of December 31, 2018, $225 million related to residential real estate loans carried at the net realizable value of the underlying collateral (e.g., collateral-dependent loans and other loans charged off in accordance with regulatory guidance). These amounts are classified as level 3 as they are valued using information from broker’s price opinions, appraisals and automated valuation models and discounted based upon the Firm’s experience with actual liquidation values. These discounts ranged from 13% to 54% with a weighted average of 25%. (a) Included $149 million for the year ended 2018 of net gains as a result of the measurement alternative. Nonrecurring fair value changes Fair value hierarchy Total fair value December 31, 2018 (in millions) Level 1 Level 2 Level 3 Loans $ — $ 273 $ 264 $^{(b)}$  $ 537 Other assets (a) — 8 815 823 Total assets measured at fair value on a nonrecurring basis $ — $ 281 $ 1,079 $^{ }$  $ 1,360 Fair value hierarchy Total fair value December 31, 2017 (in millions) Level 1 Level 2 Level 3 Loans $ — $ 238 $ 596 $ 834 Other assets — 283 183 466 Total assets measured at fair value on a nonrecurring basis $ — $ 521 $ 779 $ 1,300 (a) Primarily includes equity securities without readily determinable fair values that were adjusted based on observable price changes in orderly transactions from an identical or similar investment of the same issuer (measurement alternative) as a result of the adoption of the recognition and measurement guidance. Of the $815 million in level 3 assets measured at fair value on a nonrecurring basis as of December 31, 2018, $667 million related to such equity securities. These equity securities are classified as level 3 due to the infrequency of the observable prices and/or the restrictions on the shares. December 31, (in millions) 2018 2017 2016 Loans $ (68) $ (159) $ (209) Other assets 132 $^{(a)}$  (148) 37 Accounts payable and other liabilities — (1) — Total nonrecurring fair value gains/(losses) $ 64 $ (308) $ (172) JPMorgan Chase & Co./2018 Form 10-K 176