BB&T 2012 Annual Report Download - page 95

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in the “Notes to Consolidated Financial Statements” for additional information regarding outstanding balances of sources of
liquidity and contractual commitments and obligations.
Contractual Obligations, Commitments, Contingent Liabilities, Off-Balance Sheet Arrangements, And Related Party
Transactions
The following table presents, as of December 31, 2012, 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 31
Contractual Obligations and Other Commitments
December 31, 2012
Less than 1 to 3 3 to 5 After 5
Total One Year Years Years Years
(Dollars in millions)
Long-term debt $ 18,825 $ 1,655 $ 3,046 $ 6,318 $ 7,806
Operating leases 1,430 197 345 275 613
Commitments to fund affordable housing investments 461 265 178 14 4
Private equity commitments (1) 129 39 68 20 2
Time deposits 31,624 21,130 7,795 2,698 1
Contractual interest payments (2) 4,385 827 1,287 871 1,400
Total contractual cash obligations $ 56,854 $ 24,113 $ 12,719 $ 10,196 $ 9,826
(1) Maturities are based on estimated payment dates.
(2) Includes accrued interest and future contractual interest obligations. Variable rate payments are based upon the rate in
effect at December 31, 2012.
BB&T’ s significant commitments include investments in affordable housing and historic building rehabilitation projects
throughout its market area and private equity funds. Refer to Note 1 “Summary of Significant Accounting Policies” and to
Note 15 “Commitments and Contingencies” in the “Notes to Consolidated Financial Statements” for further discussion of
these commitments.
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, 2012 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.
BB&T holds public funds in certain states that do not require 100% collateralization on public fund bank deposits. In these
states, should the failure of another public fund depository institution result in a loss for the public entity, the resulting
shortfall would have to be absorbed on a pro-rata basis by the remaining financial institutions holding public funds in that
state.
As a member of the FHLB, BB&T is required to maintain a minimum investment in capital stock. The board of directors of
the FHLB can increase the minimum investment requirements in the event it has concluded that additional capital is required
to allow it to meet its own regulatory capital requirements. Any increase in the minimum investment requirements outside of