BB&T 2010 Annual Report Download - page 146

December 31, 2010 and 2009, the projected benefit obligation was $65 million and $39 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 $7 million, $6 million, $5 million, $5 million and
$5 million for the next five years and $21 million for the years 2016 through 2020.
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 $83 million,
$80 million and $73 million for the years ended December 31, 2010, 2009 and 2008, 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 16. 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,
letters of credit and financial guarantees and derivatives. 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,
2010 2009
(Dollars in millions)
Financial instruments whose contract amounts represent credit risk:
Commitments to extend, originate or purchase credit $36,917 $36,130
Letters of credit and financial guarantees written 7,291 7,999
Financial instruments whose notional or contract amounts exceed the amount of credit risk:
Derivative financial instruments 65,386 66,260
Commitments to fund low income housing investments 334 371
Residential mortgage loans sold with recourse 1,624 1,986
All other loans sold with recourse 4,352 3,989
Commitments to extend, originate or purchase credit are primarily lines of credit to businesses and
consumers and have specified rates and maturity dates. Many of these commitments also have adverse change
clauses, which allow BB&T to cancel the commitment due to deterioration in the borrowers’ creditworthiness.
Letters of credit and financial guarantees written are unconditional commitments issued by BB&T to
guarantee the performance of a customer to a third party. These guarantees are primarily issued to support
public and private borrowing arrangements, including commercial paper issuance, bond financing and similar
transactions, the majority of which are to tax exempt entities. The credit risk involved in the issuance of these
guarantees is essentially the same as that involved in extending loans to clients and as such, the instruments are
collateralized when necessary. As of December 31, 2010 and 2009, BB&T had issued letters of credit totaling $7.3
billion and $8.0 billion, respectively. The carrying amount of the liability for such guarantees was $41 million and
$40 million at December 31, 2010 and 2009, respectively.
A derivative is a financial instrument that derives its cash flows, and therefore its value, by reference to an
underlying instrument, index or referenced interest rate. For additional disclosures related to BB&T’s
derivatives refer to Note 20.
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