Bank of America 2008 Annual Report Download - page 152

Note 12 – Short-term Borrowings
and Long-term Debt
Short-term Borrowings
Bank of America Corporation and certain of its subsidiaries issue commer-
cial paper in order to meet short-term funding needs. Commercial paper
outstanding at December 31, 2008 was $38.0 billion compared to $55.6
billion at December 31, 2007.
Bank of America, N.A. maintains a domestic program to offer up to a
maximum of $75.0 billion, outstanding at any one time, of bank notes
with fixed or floating rates and maturities of at least seven days from the
date of issue. Short-term bank notes outstanding under this program
totaled $10.5 billion at December 31, 2008, compared to $12.3 billion
at December 31, 2007. These short-term bank notes, along with
commercial paper, Federal Home Loan Bank advances, U.S. Treasury tax
and loan notes, and term federal funds purchased, are reflected in
commercial paper and other short-term borrowings on the Consolidated
Balance Sheet.
Long-term Debt
Long-term debt consists of borrowings having an original maturity of one
year or more. The following table presents the balance of long-term debt
at December 31, 2008 and 2007 and the related rates and maturity
dates at December 31, 2008:
December 31
(Dollars in millions) 2008 2007
Notes issued by Bank of America Corporation (1)
Senior notes:
Fixed, with a weighted average rate of 4.62%, ranging from 0.61% to 10.00%, due 2009 to 2043 $ 67,776 $ 47,430
Floating, with a weighted average rate of 3.05%, ranging from 0.42% to 6.78%, due 2009 to 2041 54,076 41,791
Subordinated notes:
Fixed, with a weighted average rate of 5.80%, ranging from 2.40% to 10.20%, due 2009 to 2038 29,618 28,630
Floating, with a weighted average rate of 3.06%, ranging from 2.48% to 5.13%, due 2016 to 2019 650 686
Junior subordinated notes (related to trust preferred securities):
Fixed, with a weighted average rate of 6.73%, ranging from 5.25% to 11.45%, due 2026 to 2055 15,606 13,866
Floating, with a weighted average rate of 3.56%, ranging from 2.25% to 8.17%, due 2027 to 2056 3,736 3,359
Total notes issued by Bank of America Corporation 171,462 135,762
Notes issued by Bank of America, N.A. and other subsidiaries
Senior notes:
Fixed, with a weighted average rate of 2.84%, ranging from 1.70% to 11.30%, due 2009 to 2027 6,103 5,648
Floating, with a weighted average rate of 2.43%, ranging from 0.47% to 4.50%, due 2009 to 2051 28,467 33,088
Subordinated notes:
Fixed, with a weighted average rate of 5.90%, ranging from 5.30% to 7.13%, due 2009 to 2036 5,593 6,592
Floating, with a weighted average rate of 2.42%, ranging from 2.28% to 3.77%, due 2010 to 2027 2,796 1,907
Total notes issued by Bank of America, N.A. and other subsidiaries 42,959 47,235
Notes issued by NB Holdings Corporation
Junior subordinated notes (related to trust preferred securities):
Floating, 3.82%, due 2027 258 258
Total notes issued by NB Holdings Corporation 258 258
Notes issued by BAC North America Holding Company and subsidiaries
Senior notes:
Fixed, with a weighted average rate of 5.27%, ranging from 3.00% to 7.00%, due 2009 to 2026 562 583
Junior subordinated notes (related to trust preferred securities):
Fixed, 6.97%, perpetual 491 491
Floating, with a weighted average rate of 3.83%, ranging from 2.05% to 6.50%, perpetual 940 1,627
Total notes issued by BAC North America Holding Company and subsidiaries 1,993 2,701
Other debt (1)
Advances from Federal Home Loan Banks
Fixed, with a weighted average rate of 4.80%, ranging from 1.00% to 8.29%, due 2009 to 2031 48,495 5,751
Floating, with a weighted average rate of 0.78%, ranging from 0.20% to 2.09%, due 2009 to 2013 2,750 5,450
Other 375 351
Total other debt 51,620 11,552
Total long-term debt $268,292 $197,508
(1) Includes long-term debt assumed related to Countrywide.
The majority of the floating rates are based on three- and six-month
London InterBank Offered Rates (LIBOR). Bank of America Corporation
and Bank of America, N.A. maintain various domestic and international
debt programs to offer both senior and subordinated notes. The notes
may be denominated in U.S. dollars or foreign currencies. At
December 31, 2008 and 2007, the amount of foreign currency denomi-
nated debt translated into U.S. dollars included in total long-term debt
was $53.3 billion and $58.8 billion. Foreign currency contracts are used
to convert certain foreign currency denominated debt into U.S. dollars.
150 Bank of America 2008