BB&T 2007 Annual Report Download - page 112

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BB&T CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
The plan assets included 1.033 million shares valued at $32 million and 995 thousand shares valued at $44
million of BB&T common stock at December 31, 2007 and 2006, respectively.
Postretirement Benefits Other than Pension
BB&T provides certain postretirement benefits. These benefits provide covered employees a subsidy for
purchasing health care and life insurance. During 2004, BB&T changed its postretirement benefit to eliminate the
subsidy for those employees retiring after December 31, 2004. BB&T also reduced the subsidy paid to employees
who retired on or before December 31, 2004, were age 55 years or older, and had at least ten years of service. For
those employees, the subsidy is based upon years of service of the employee at the time of retirement. The effect
of the change in subsidy has been accounted for as a plan amendment and reduced the projected benefit obligation
by $96 million, which is being amortized as a reduction of benefit costs over approximately 17 years. At
December 31, 2007 and 2006, the projected benefit obligation was $41 million and $44 million, respectively. There
are no plan assets assigned to the plan. Employer contributions to the plan are based on benefit payments. The
estimated benefit payments for other postretirement benefits are $6 million, $5 million, $5 million, $5 million and
$4 million for the next five years and $15 million for the years 2013 through 2017.
Defined Contribution Plans
BB&T offers a 401(k) Savings Plan and other defined contribution plans that permit employees to contribute
from 1% to 50% of their cash compensation. For full-time employees who are 21 years of age or older with one
year or more of service, BB&T makes matching contributions of up to 6% of the employee’s compensation.
BB&T’s contribution to the 401(k) Savings Plan and nonqualified defined contribution plans totaled $70 million,
$65 million and $57 million for the years ended December 31, 2007, 2006 and 2005, respectively. BB&T also offers
defined contribution plans to certain employees of subsidiaries who do not participate in the 401(k) Savings Plan.
Other
There are various other employment contracts, deferred compensation arrangements and covenants not to
compete with selected members of management and certain retirees.
Note 15. Commitments and Contingencies
BB&T utilizes a variety of financial instruments to meet the financing needs of clients and to reduce
exposure to fluctuations in interest rates. These financial instruments include commitments to extend credit,
standby letters of credit and financial guarantees, interest rate caps, floors and collars, interest rate swaps,
swaptions, when-issued securities, options written and forward and futures contracts. BB&T also has
commitments to fund certain affordable housing investments and contingent liabilities of certain sold loans. The
following table presents the contractual or notional amount of these instruments:
Contract or Notional
Amount at
December 31,
2007 2006
(Dollars in millions)
Financial instruments whose contract amounts represent credit risk:
Commitments to extend, originate or purchase credit $34,295 $32,978
Standby letters of credit and financial guarantees written 3,367 3,185
Commercial letters of credit 41 37
Financial instruments whose notional or contract amounts exceed the amount of credit risk:
Derivative financial instruments 47,197 23,097
Commitments to fund low income housing investments 444 183
Residential mortgage loans sold with recourse 170 214
All other loans sold with recourse 2,140
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