BB&T 2011 Annual Report Download - page 132

The following table presents the activity for Level 3 plan assets for the years ended December 31, 2011, 2010 and 2009:
Fair Value Measurements Using
Significant Unobservable Inputs
Alternative
Investments
U.S.
Securities
(Dollars in millions)
Balance at January 1, 2009 $ 90 $ 61
Actual return on plan assets 12 (12)
Purchases, sales and settlements (10) —
Transfers in/out of Level 3 — (49)
Balance at December 31, 2009 92 —
Actual return on plan assets 9 —
Purchases, sales and settlements (1) 23 —
Balance at December 31, 2010 124 —
Actual return on plan assets 9 —
Purchases (1) 21 —
Sales (55) —
Balance at December 31, 2011 $ 99 $ —
(1) The net purchases in alternative investments during 2011 and 2010 relates to investment commitments that existed
prior to January 1, 2009.
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 $85 million, $83 million and $80 million for the
years ended December 31, 2011, 2010 and 2009, respectively. BB&T also offers defined contribution plans to certain
employees of subsidiaries who do not participate in the 401(k) Savings Plan.
Other benefits
There are various other employment contracts, deferred compensation arrangements and covenants not to compete with
selected members of management and certain retirees. In addition, BB&T sponsors a plan which provides certain retirees
with a subsidy for purchasing health care and life insurance. In 2004, BB&T amended this plan 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. These plans and their obligations are not
material to BB&T’s financial statements.
NOTE 15. 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 related to certain sold loans.
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
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