BB&T 2009 Annual Report Download - page 136

BB&T CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
(1) Included in U.S. equity securities is 3.593 million shares of BB&T common stock valued at $92 million at
December 31, 2009.
(2) This category includes a common/commingled fund that is comprised of assets from several accounts, pooled
together, to reduce management and administration costs.
(3) The total fair value of plan assets exclude $7 million of accrued income at December 31, 2009.
The table below presents a reconciliation for Level 3 plan assets at December 31, 2009.
Fair Value Measurements Using
Significant Unobservable Inputs
U.S. Equity
Securities (1) Alternative Investments
Balance at January 1, 2009 $61 $90
Actual return on plan assets:
Relating to assets still held at the reporting date (12) 12
Purchases, sales and settlements — (10)
Transfers in/out out of Level 3 (49) —
Balance at December 31, 2009 $— $ 92
(1) Activity relates to shares of BB&T common stock that were restricted. These shares were transferred to
Level 1 upon the lapse of the restriction.
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. In 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, 2009 and 2008, the projected benefit obligation was $39 million and $34 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, $4 million, $4 million and
$3 million for the next five years and $11 million for the years 2015 through 2019.
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 $80 million,
$73 million and $70 million for the years ended December 31, 2009, 2008 and 2007, 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.
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