BB&T 2011 Annual Report Download - page 45

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,
2011 are generally expected to be utilized during 2012, unless they relate to specific contracts that expire in later years.
The following table presents a summary of activity with respect to BB&T’s merger-related and restructuring accruals.
Table 10
Merger-related and Restructuring Accrual Activity
(Dollars in millions)
Balance
January 1,
2010
Charges
and credits 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
Balance
January 1,
2011
Charges
and credits Utilized
Other,
net
Balance
December 31,
2011
Severance and personnel-related $ 2 $ 11 $ (2) $ — $ 11
Occupancy and equipment 6 (1) (2) 1 4
Other 2 6 (3) — 5
Total $ 10 $ 16 $ (7) $ 1 $ 20
Management currently expects lower noninterest expense in 2012 compared to 2011 largely due to lower credit costs and
the impact of management’s expense optimization efforts.
Provision for Income Taxes
BB&T’s provision for income taxes totaled $296 million, $115 million and $159 million for 2011, 2010 and 2009,
respectively. The increase in the provision for income taxes for 2011 largely reflects higher pre-tax earnings, whereas the
decline in the provision for income taxes during 2010 was largely due to lower pre-tax income, higher federal tax credits
and higher tax-exempt income. BB&T’s effective tax rates for the years ended 2011, 2010 and 2009 were 18.2%, 11.9%
and 15.3%, respectively.
BB&T has extended credit to and invested in the obligations of states and municipalities and their agencies, and has made
other investments and loans that produce tax-exempt income. The income generated from these investments, together with
certain other transactions that have favorable tax treatment, have reduced BB&T’s overall effective tax rate from the
statutory rate in 2011 and 2010.
Management currently expects the effective tax rate will be approximately 25% in 2012.
Refer to Note 13 “Income Taxes” in the “Notes to Consolidated Financial Statements” for a reconciliation of the effective
tax rate to the statutory tax rate and a discussion of uncertain tax positions and other tax matters.
Segment Results
BB&T’s operations are divided into six reportable business segments: Community Banking, Residential Mortgage
Banking, Dealer Financial Services, Specialized Lending, Insurance Services, and Financial Services. These operating
segments have been identified based on BB&T’s organizational structure. See Note 21 “Operating Segments” in the
“Notes to Consolidated Financial Statements” herein for additional disclosures related to BB&T’s operating segments, the
internal accounting and reporting practices used to manage these segments and financial disclosures for these segments.
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