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Contractual Obligations, Commitments, Contingent Liabilities, Off-Balance Sheet Arrangements, And Related Party
Transactions
The following table presents, as of December 31, 2011, BB&T’s significant fixed and determinable contractual
obligations by payment date. The payment amounts represent those amounts contractually due to the recipient. The table
excludes liabilities recorded where management cannot reasonably estimate the timing of any payments that may be
required in connection with these liabilities. Further discussion of the nature of each obligation is included in Note 15
“Commitments and Contingencies” in the “Notes to Consolidated Financial Statements.”
Table 33
Contractual Obligations and Other Commitments
December 31, 2011
Total
Less than
One Year
1to3
Years
3to5
Years
After 5
Years
(Dollars in millions)
Contractual Cash Obligations:
Long-term debt $ 21,803 $ 1,522 $ 3,680 $ 5,199 $ 11,402
Operating leases 1,418 184 328 262 644
Commitments to fund affordable housing
investments 394 183 195 14 2
Venture capital commitments (1) 129 30 78 21 —
Time deposits 33,899 21,564 8,885 3,450 —
Total contractual cash obligations $ 57,643 $ 23,483 $ 13,166 $ 8,946 $ 12,048
(1) Maturities are based on estimated payment dates.
BB&T’s significant commitments include certain investments in affordable housing and historic building rehabilitation
projects throughout its market area. BB&T enters into such arrangements as a means of supporting local communities and
recognizes tax credits relating to these investments. At December 31, 2011, BB&T’s investments in such projects totaled
$1.2 billion, which includes outstanding commitments of $394 million. BB&T typically acts as a limited partner in these
investments and does not exert control over the operating or financial policies of the partnerships. Branch Bank typically
provides financing during the construction and development of the properties; however, permanent financing is generally
obtained from independent third parties upon completion of a project. As of December 31, 2011, BB&T had $178 million
in loan commitments outstanding related to these projects, of which $76 million had been funded. BB&T’s risk exposure
relating to such commitments is generally limited to the amount of investments and loan commitments made. Refer to
Note 1 “Summary of Significant Accounting Policies” in the “Notes to Consolidated Financial Statements” for further
discussion of these investments in limited partnerships.
In addition, BB&T enters into derivative contracts to manage various financial risks. 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. Derivative contracts are carried at fair value on the Consolidated Balance Sheets with the fair value representing the
net present value of expected future cash receipts or payments based on market interest rates as of the balance sheet date.
Derivative contracts are written in amounts referred to as notional amounts, which only provide the basis for calculating
payments between counterparties and are not a measure of financial risk. Therefore, the derivative liabilities recorded on
the balance sheet as of December 31, 2011 do not represent the amounts that may ultimately be paid under these contracts.
Further discussion of derivative instruments is included in Note 1 “Summary of Significant Accounting Policies” and
Note 19 “Derivative Financial Instruments” in the “Notes to Consolidated Financial Statements.”
In the ordinary course of business, BB&T indemnifies its officers and directors to the fullest extent permitted by law
against liabilities arising from litigation. BB&T also issues standard representation and warranties in underwriting
agreements, merger and acquisition agreements, loan sales, brokerage activities and other similar arrangements.
Counterparties in many of these indemnifications provide similar indemnifications to BB&T. Although these agreements
often do not specify limitations, BB&T does not believe that any payments related to these guarantees would materially
change the financial condition or results of operations of BB&T.
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