BB&T 2012 Annual Report Download - page 142

120
The following table presents the activity for Level 3 plan assets, all of which are in alternative investments:
Years Ended December 31,
2012 2011 2010
(Dollars in millions)
Balance at January 1, $ 99 $ 124 $ 92
Actual return on plan assets 7 9 9
Purchases, sales and settlements (8) (34) 23
Balance at December 31, $ 98 $ 99 $ 124
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 $97 million, $85 million and $83 million for the years
ended December 31, 2012, 2011 and 2010, 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.
The following table presents a summary of certain commitments and contingencies:
December 31,
2012 2011
(Dollars in millions)
Letters of credit and financial guarantees written $ 5,164 $ 6,095
Carrying amount of the liability for letter of credit guarantees 30 27
Investments related to affordable housing and historic building rehabilitation projects 1,223 1,159
Amount of future funding commitments included in investments related to affordable
housing and historic rehabilitation projects 461 394
Lending exposure to these affordable housing projects 87 76
Tax credits subject to recapture related to affordable housing projects 193 161
Investments in private equity and similar investments 323 261
Future funding commitments to private equity and similar investments 129 129
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