BB&T 2010 Annual Report Download - page 76

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 21
Summary of Merger-Related and Restructuring Charges
Years Ended
December 31,
2010 2009 2008
(Dollars in millions)
Severance and personnel-related $11 $17 $ 5
Occupancy and equipment 28 13
Other 30 20 7
Total $69 $38 $15
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 if 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.
Merger-related and restructuring accruals are established when the costs are incurred or once all
requirements for a plan to dispose of certain business functions have been approved by management. In general,
a major portion of accrued costs are utilized in conjunction with or immediately following the systems conversion,
when most of the duplicate positions are eliminated and the terminated employees begin to receive severance.
Other accruals are utilized over time based on the sale, closing or disposal of duplicate facilities or equipment or
the expiration of lease contracts. Merger and restructuring accruals are re-evaluated periodically and adjusted as
necessary. The remaining accruals at December 31, 2010 are expected to be utilized during 2011, unless they
relate to specific contracts that expire in later years. 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,
2009
Merger-
related and
restructuring
charges Utilized Other, net
Balance
December 31,
2009
Severance and personnel-related $ 7 $17 $(18) $— $ 6
Occupancy and equipment 6 1 (2) (2) 3
Other 11 20 (28) 3 6
Total $24 $38 $(48) $ 1 $15
Balance
January 1,
2010
Merger-
related and
restructuring
charges Utilized Other, net
Balance
December 31,
2010
Severance and personnel-related $ 6 $11 $(14) $ (1) $ 2
Occupancy and equipment 3 28 (25) — 6
Other 6 30 (31) (3) 2
Total $15 $69 $(70) $ (4) $10
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