BB&T 2009 Annual Report Download - page 103

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BB&T CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
more detailed information related to the major categories of plan assets, the inputs and valuation techniques used
to measure the fair value of plan assets and the effect of fair value measurements using significant unobservable
inputs (Level 3) on changes in plan assets for the period, as well as how investment allocation decisions are made,
including the factors that are pertinent to an understanding of investment policies and strategies. The disclosures
about plan assets required by this guidance were effective for BB&T on December 31, 2009 and included in Note
14 to these consolidated financial statements.
In April 2009, the FASB issued new guidance impacting Fair Value Measurements and Disclosures. This
provides additional guidance for estimating fair value when the volume and level of activity for the asset or
liability have significantly decreased. This also includes guidance on identifying circumstances that indicate a
transaction is not orderly, requires additional disclosures of valuation inputs and techniques in interim periods
and defines the major security types that are required to be disclosed. This guidance was effective for BB&T on
April 1, 2009. The additional disclosures required by this guidance are included in Note 18 to these consolidated
financial statements.
In April 2009, the FASB issued new guidance impacting Investments—Debt and Equity Securities. This
guidance amends GAAP for debt securities to make the guidance more operational and to improve the
presentation and disclosure of other-than-temporary impairments on debt and equity securities in the financial
statements. This guidance was effective for BB&T on April 1, 2009. BB&T did not have any cumulative effect
adjustment related to the adoption of this guidance and the additional disclosures required are included in the
Consolidated Statements of Income and in Note 3 to these consolidated financial statements.
In June 2009, the FASB issued new guidance impacting Transfers and Servicing. The objective of this
guidance is to improve the relevance, representational faithfulness, and comparability of the information that a
reporting entity provides in its financial reports about a transfer of financial assets; the effects of a transfer on its
financial position, financial performance, and cash flows; and a transferor’s continuing involvement in transferred
financial assets. This guidance is effective for financial asset transfers occurring after December 31, 2009. The
adoption of this guidance is not expected to be material to BB&T’s consolidated financial statements.
In June 2009, the FASB issued new guidance impacting Consolidation of variable interest entities. The
objective of this guidance is to improve financial reporting by enterprises involved with variable interest entities
and to provide more relevant and reliable information to users of financial statements. This guidance is effective as
of January 1, 2010. The adoption of this guidance is not expected to be material to BB&T’s consolidated financial
statements.
In September 2009, the FASB issued new guidance that creates a practical expedient to measure the fair
value of an alternative investment that does not have a readily determinable fair value. This guidance also
requires certain additional disclosures. This guidance is effective for interim and annual periods ending after
December 15, 2009. The adoption of this guidance was not material to BB&T’s consolidated financial statements.
In February 2010, the FASB issued new guidance impacting Fair Value Measurements and Disclosures.
The new guidance requires a gross presentation of purchases and sales of Level 3 activities and adds a new
requirement to disclose transfers in and out of Level 1 and Level 2 measurements. The guidance related to the
transfers between level 1 and level 2 measurements is effective for BB&T on January 1, 2010. The guidance that
requires increased disaggregation of the level 3 activities is effective for BB&T on January 1, 2011.
NOTE 2. Business Combinations
Financial Institution Acquisitions
Colonial Bank
On August 14, 2009, Branch Bank entered into a purchase and assumption agreement with the Federal
Deposit Insurance Corporation (“FDIC”) to acquire certain assets and assume substantially all of the deposits
103