Bank of America 2004 Annual Report Download - page 56

Download and view the complete annual report

Please find page 56 of the 2004 Bank of America annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 154

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143
  • 144
  • 145
  • 146
  • 147
  • 148
  • 149
  • 150
  • 151
  • 152
  • 153
  • 154

BANK OF AMERICA 2004 55
Many of our lending relationships contain both funded and unfunded
elements. The funded portion is reflected on our Balance Sheet. The
unfunded component of these commitments is not recorded on our
Balance Sheet until a draw is made under the loan facility.
These commitments, as well as guarantees, are more fully
discussed in Note 12 of the Consolidated Financial Statements.
The following table summarizes the total unfunded, or off-balance
sheet, credit extension commitment amounts by expiration date. At
December 31, 2004, charge cards (nonrevolving card lines) to indi-
viduals and government entities guaranteed by the U.S. government
in the amount of $10.9 billion (related outstandings of $205 million)
were not included in credit card line commitments in the table below.
Obligations and Commitments
We have contractual obligations to make future payments on debt
and lease agreements. Additionally, in the normal course of busi-
ness, we enter into contractual arrangements whereby we commit to
future purchases of products or services from unaffiliated parties.
Obligations that are legally binding agreements whereby we agree to
purchase products or services with a specific minimum quantity
defined at a fixed, minimum or variable price over a specified period
of time are defined as purchase obligations. Included in purchase
obligations are vendor contracts of $4.9 billion, commitments to pur-
chase securities of $3.3 billion and commitments to purchase loans
of $3.8 billion. The most significant of our vendor contracts include
communication services, processing services and software contracts.
Other long-term liabilities include our obligations related to the
Qualified Pension Plans, Nonqualified Pension Plans and
Postretirement Health and Life Plans (the Plans). Obligations to the
Plans are based on the current and projected obligations of the Plans,
performance of the Plans’ assets and any participant contributions, if
applicable. During 2004 and 2003, we contributed $303 million and
$460 million, respectively, to the Plans, and we expect to make at
least $150 million of contributions during 2005. Management
believes the effect of the Plans on liquidity is not significant to our
overall financial condition. Debt and lease obligations are more fully
discussed in Note 11 of the Consolidated Financial Statements.
Table 7 presents total long-term debt and other obligations at December 31, 2004.
Table 7
Long–term Debt and Other Obligations
December 31, 2004
Due after Due after
Due in 1 year 3 years
1 year through through Due after
(Dollars in millions) or less 3 years 5 years 5 years Total
Long-term debt and capital leases(1) $ 9,511 $ 22,498 $ 17,298 $ 48,771 $ 98,078
Purchase obligations(2) 7,970 1,551 1,303 1,186 12,010
Operating lease obligations 1,373 2,136 1,543 3,384 8,436
Other long-term liabilities 151 – – – 151
Total $ 19,005 $ 26,185 $ 20,144 $ 53,341 $ 118,675
(1) Includes principal payments only and capital lease obligations of $46.
(2) Obligations that are legally binding agreements whereby we agree to purchase products or services with a specific minimum quantity defined at a fixed, minimum or variable price over a specified period
of time are defined as purchase obligations.
Table 8
Credit Extension Commitments
December 31, 2004
Expires after Expires after
Expires in 1 year 3 years
1 year through through Expires after
(Dollars in millions) or less 3 years 5 years 5 years Total
Loan commitments(1) $ 111,412 $ 63,528 $ 53,056 $ 19,098 $ 247,094
Home equity lines of credit 690 1,599 2,059 55,780 60,128
Standby letters of credit and financial guarantees 24,755 10,472 3,151 4,472 42,850
Commercial letters of credit 5,374 52 20 207 5,653
Legally binding commitments 142,231 75,651 58,286 79,557 355,725
Credit card lines 177,286 8,175 – – 185,461
Total $ 319,517 $ 83,826 $ 58,286 $ 79,557 $ 541,186
(1) Equity commitments of $2,052, of which $838 were acquired from FleetBoston, related to obligations to fund existing equity investments were included in loan commitments at December 31, 2004.