Bank of America 2005 Annual Report Download - page 171

BANK OF AMERICA CORPORATION AND SUBSIDIARIES
Notes to Consolidated Financial Statements—(Continued)
The Corporation will continue to repurchase shares, from time to time, in the open market or in private transactions
through the Corporation’s approved repurchase programs. The Corporation expects to continue to repurchase a number
of shares of common stock at least equal to any shares issued under the Corporation’s employee stock plans.
At December 31, 2005, the Corporation had 690,000 shares authorized and 382,450 shares, or $96 million,
outstanding of Bank of America 6.75% Perpetual Preferred Stock with a stated value of $250 per share. Ownership is
held in the form of depositary shares paying dividends quarterly at an annual rate of 6.75 percent. On or after April 15,
2006, the Corporation may redeem Bank of America 6.75% Perpetual Preferred Stock, in whole or in part, at its option,
at $250 per share, plus accrued and unpaid dividends.
The Corporation also had 805,000 shares authorized and 700,000 shares, or $175 million, outstanding of Bank of
America Fixed/Adjustable Rate Cumulative Preferred Stock with a stated value of $250 per share. Ownership is held in
the form of depositary shares paying dividends quarterly at an annual rate of 6.60 percent through April 1, 2006. After
April 1, 2006, the dividend rate on Fixed/Adjustable Rate Cumulative Preferred Stock will be a rate per annum equal to
0.50 percent plus the highest of the Treasury Bill Rate, the Ten Year Constant Maturity Rate, and the Thirty Year
Constant Maturity Rate, as each term is defined in BAC’s Amended and Restated Certificate of Designations
establishing the Fixed/Adjustable Rate Cumulative Preferred Stock. The applicable rate per annum for any dividend
period beginning on or after April 1, 2006 will not be less than 7.00 percent nor greater than 13.00 percent. On or after
April 1, 2006, the Corporation may redeem Bank of America Fixed/Adjustable Rate Cumulative Preferred Stock, in
whole or in part, at its option, at $250 per share, plus accrued and unpaid dividends.
In addition to the preferred stock described above, the Corporation had 35,045 shares authorized and 7,739 shares,
or $1 million, outstanding of the Series B Preferred Stock with a stated value of $100 per share paying dividends
quarterly at an annual rate of 7.00 percent. The Corporation may redeem the Series B Preferred Stock, in whole or in
part, at its option, at $100 per share, plus accrued and unpaid dividends.
All preferred stock outstanding has preference over our common stock with respect to the payment of dividends and
distribution of our assets in the event of a liquidation or dissolution. Except in certain circumstances, the holders of
preferred stock have no voting rights.
The following table presents the changes in Accumulated OCI for 2005 and 2004.
(Dollars in millions)(1) Securities Derivatives(2) Other Total
Balance, December 31, 2003 (Restated) .................................... $ (70) $(2,094) $ (270) $ (2,434)
Net change in fair value recorded in Accumulated OCI ........................... 1,088 (294) (18) 776
Less: Net gains (losses) reclassified into earnings(3) .............................. 1,215 (109) — 1,106
Balance, December 31, 2004 (Restated) .................................... (197) (2,279) (288) (2,764)
Net change in fair value recorded in Accumulated OCI ........................... (1,907) (2,225) 48 (4,084)
Less: Net gains (losses) reclassified into earnings(3) .............................. 874 (166) — 708
Balance, December 31, 2005 ........................................... $(2,978) $(4,338) $(240) $(7,556)
(1) Amounts shown are net-of-tax.
(2) The amount included in Accumulated OCI for terminated derivative contracts was a loss of $2.5 billion and a gain of $143 million,
net-of-tax, at December 31, 2005 and 2004.
(3) Included in this line item are amounts related to derivatives used in cash flow hedge relationships. These amounts are reclassified
into earnings in the same period or periods during which the hedged forecasted transaction affects earnings.
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