Bank of America 2010 Annual Report Download - page 196

NOTE 13 Long-term Debt
Long-term debt consists of borrowings having an original maturity of one year or more. The table below presents the balance of long-term debt at December 31,
2010 and 2009, and the related contractual rates and maturity dates at December 31, 2010.
(Dollars in millions) 2010 2009
December 31
Notes issued by Bank of America Corporation
Senior notes:
Fixed, with a weighted-average rate of 4.82%, ranging from 0.25% to 9.00%, due 2011 to 2043
$85,157 $78,282
Floating, with a weighted-average rate of 1.26%, ranging from 0.19% to 7.18%, due 2011 to 2041
36,162 47,731
Senior structured notes
18,796 8,897
Subordinated notes:
Fixed, with a weighted-average rate of 5.69%, ranging from 2.40% to 10.20%, due 2011 to 2038
26,553 28,017
Floating, with a weighted-average rate of 2.00%, ranging from 0.04% to 5.43%, due 2016 to 2019
705 681
Junior subordinated notes (related to trust preferred securities):
Fixed, with a weighted-average rate of 6.72%, ranging from 5.25% to 11.45%, due 2026 to 2055
15,709 15,763
Floating, with a weighted-average rate of 0.91%, ranging from 0.55% to 3.64%, due 2027 to 2056
3,514 3,517
Total notes issued by Bank of America Corporation 186,596 182,888
Notes issued by Merrill Lynch & Co., Inc. and subsidiaries
Senior notes:
Fixed, with a weighted-average rate of 5.44%, ranging from 0.05% to 8.83%, due 2011 to 2037
43,495 52,506
Floating, with a weighted-average rate of 1.21%, ranging from 0.02% to 5.21%, due 2011 to 2037
27,447 36,624
Senior structured notes
38,891 48,518
Subordinated notes:
Fixed, with a weighted-average rate of 6.05%, ranging from 2.61% to 8.125%, due 2016 to 2038
9,423 9,258
Floating, with a weighted-average rate of 2.09%, ranging from 0.89% to 5.29%, due 2017 to 2026
1,935 1,857
Junior subordinated notes (related to trust preferred securities):
Fixed, with a weighted-average rate of 6.91%, ranging from 6.45% to 7.38%, due 2062 to perpetual
3,576 3,552
Other long-term debt
986 2,636
Total notes issued by Merrill Lynch & Co., Inc. and subsidiaries 125,753 154,951
Notes issued by Bank of America, N.A. and other subsidiaries
Senior notes:
Fixed, with a weighted-average rate of 1.13%, ranging from 0.25% to 7.00%, due 2011 to 2027
169 12,461
Floating, with a weighted-average rate of 0.30%, ranging from 0.20% to 0.85%, due 2011 to 2051
12,562 24,846
Senior structured notes
1,319 –
Subordinated notes:
Fixed, with a weighted-average rate of 5.91%, ranging from 5.30% to 7.13%, due 2012 to 2036
5,194 5,193
Floating, with a weighted-average rate of 0.59%, ranging from 0.29% to 0.60%, due 2016 to 2019
2,023 2,272
Total notes issued by Bank of America, N.A. and other subsidiaries 21,267 44,772
Other debt
Advances from Federal Home Loan Banks:
Fixed, with a weighted-average rate of 3.43%, ranging from 0.38% to 8.29%, due 2011 to 2034
41,001 53,032
Floating, with a weighted-average rate of 0.16%, ranging from 0.16% to 0.18%, due 2011 to 2013
750 750
Other
2,051 2,128
Total other debt 43,802 55,910
Total long-term debt excluding consolidated VIEs 377,418 438,521
Long-term debt of consolidated VIEs under new consolidation guidance
71,013 n/a
Total long-term debt $448,431 $438,521
n/a = not applicable
At December 31, 2010, long-term debt of consolidated VIEs included
credit card, automobile, home equity and other VIEs of $52.8 billion, $6.5 bil-
lion, $3.6 billion and $8.1 billion, respectively. Long-term debt of VIEs is
collateralized by the assets of the VIEs. For more information, see Note8–Se-
curitizations and Other Variable Interest Entities.
The majority of the floating rates are based on three- and six-month London
Interbank Offered Rate (LIBOR).
Bank of America Corporation, Merrill Lynch & Co., Inc. and subsidiaries,
and Bank of America, N.A. maintain various U.S. and non-U.S. debt programs
to offer both senior and subordinated notes. The notes may be denominated
in U.S. dollars or foreign currencies. At December 31, 2010 and 2009, the
amount of foreign currency-denominated debt translated into U.S. dollars
included in total long-term debt was $145.9 billion and $156.8 billion. Foreign
currency contracts are used to convert certain foreign currency-denominated
debt into U.S. dollars.
At December 31, 2010 and 2009, Bank of America Corporation had
approximately $88.4 billion and $119.1 billion of authorized, but unissued,
corporate debt and other securities under its existing U.S. shelf registration
statements. At December 31, 2010 and 2009, Bank of America, N.A. had
approximately $53.3 billion and $35.3 billion of authorized, but unissued,
bank notes under its existing $75.0 billion bank note program. Long-term
bank notes issued and outstanding under Bank of America, N.A.’s $75.0 bil-
lion bank note program totaled $7.1 billion and $19.1 billion at December 31,
2010 and 2009. At both December 31, 2010 and 2009, Bank of America,
N.A. had approximately $20.6 billion of authorized, but unissued, mortgage
notes under its $30.0 billion mortgage bond program.
The weighted-average effective interest rates for total long-term debt,
excluding senior structured notes, total fixed-rate debt and total floating-rate
debt, based on the rates in effect at December 31, 2010, were 3.96 percent,
5.02 percent and 1.09 percent, respectively, at December 31, 2010 and,
194 Bank of America 2010