BB&T 2007 Annual Report Download - page 54

The following table presents the components of merger-related and restructuring charges included in
noninterest expenses. This table includes changes to previously recorded merger-related accruals and period
expenses for merger-related items that must be expensed as incurred. Items that are required to be expensed as
incurred include certain expenses associated with systems conversions, data processing, training, and other costs.
Table 19
Summary of Merger-Related and Restructuring Charges (Gains)
For the Year Ended
December 31,
2007 2006 2005
(Dollars in millions)
Severance and personnel-related $ 8 $ 2 $ (5)
Occupancy and equipment 2 (2) (5)
Other 11 18 (1)
Total $21 $18 $(11)
Severance and personnel-related costs or credits include severance, employee retention, payments related to
change-in-control provisions of employment contracts, outplacement services and other benefits associated with
employee termination or reversals of previously estimated amounts, which typically occur in corporate support
and data processing functions. Occupancy and equipment charges or credits represent merger-related and
restructuring costs or gains associated with lease terminations, obsolete equipment write-offs, and the sale of
duplicate facilities and equipment. Credits may result when obsolete properties or equipment are sold for more
than originally estimated. Other merger-related and restructuring charges or credits include expenses necessary
to convert and combine the acquired branches and operations of merged companies, direct media advertising
related to the acquisitions, asset and supply inventory write-offs, litigation accruals, and other similar charges.
In conjunction with the consummation of an acquisition and the completion of other requirements, BB&T typically
accrues certain merger-related expenses related to estimated severance and other personnel costs, costs to terminate
lease contracts, costs related to the disposal of duplicate facilities and equipment, costs to terminate data processing
contracts and other costs associated with an acquisition. The following tables present a summary of activity with
respect to BB&T’s merger and restructuring accruals. These tables include costs reflected as expenses, as presented in
the table above, and certain accruals recorded through purchase accounting adjustments.
Merger-related and Restructuring Accrual Activity
(Dollars in millions)
Balance
January 1,
2006 Accrued at acquisition
Merger-
related and
restructuring
charges
(gains) Utilized
Purchase
Price
Adjustments Other, net (1)
Balance
December 31,
2006
Severance and personnel-
related $ 6 $ 20 $ 2 $(19) $ 3 $— $12
Occupancy and equipment 8 — (2) (2) — — 4
Other 3 1 18 (10) — (10) 2
Total $17 $ 21 $18 $(31) $ 3 $ (10) $18
(1) Primarily relates to the write-off of duplicate software related to the Main Street acquisition.
Balance
January 1,
2007 Accrued at acquisition
Merger-
related and
restructuring
charges Utilized
Purchase
Price
Adjustments Other, net
Balance
December 31,
2007
Severance and personnel-
related $12 $4 $ 8 $(15) $— $— $ 9
Occupancy and equipment 4 1 2 (3) — — 4
Other 2 3 11 (13) — — 3
Total $18 $8 $21 $(31) $— $— $16
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