Bank of America 2010 Annual Report Download - page 213

Series L Preferred Stock does not have early redemption/call rights. Each
share of the Series L Preferred Stock may be converted at any time, at the
option of the holder, into 20 shares of the Corporation’s common stock plus
cash in lieu of fractional shares. On or after January 30, 2013, the Corpo-
ration may cause some or all of the Series L Preferred Stock, at its option, at
any time or from time to time, to be converted into shares of common stock at
the then-applicable conversion rate if, for 20 trading days during any period of
30 consecutive trading days, the closing price of common stock exceeds
130 percent of the then-applicable conversion price of the Series L Preferred
Stock. If the Corporation exercises its rights to cause the automatic conver-
sion of Series L Preferred Stock on January 30, 2013, it will still pay any
accrued dividends payable on January 30, 2013 to the applicable holders of
record.
All series of preferred stock on the previous page have a par value of
$0.01 per share, are not subject to the operation of a sinking fund, have no
participation rights, and with the exception of the Series L Preferred Stock, are
not convertible. The holders of the Series B Preferred Stock and Series 1-8
Preferred Stock have general voting rights, and the holders of the other series
included on the previous page have no general voting rights. All preferred
stock of the Corporation outstanding has preference over the Corporation’s
common stock with respect to the payment of dividends and distribution of the
Corporation’s assets in the event of a liquidation or dissolution. If any dividend
payable on these series is in arrears for three or more semi-annual or six or
more quarterly dividend periods, as applicable (whether consecutive or not),
the holders of these series and any other class or series of preferred stock
ranking equally as to payment of dividends and upon which equivalent voting
rights have been conferred and are exercisable (voting as a single class) will
be entitled to vote for the election of two additional directors. These voting
rights terminate when the Corporation has paid in full dividends on these
series for at least two semi-annual or four quarterly dividend periods, as
applicable, following the dividend arrearage.
NOTE 16 Accumulated Other Comprehensive Income
The table below presents the changes in accumulated OCI in 2008, 2009 and 2010, net-of-tax.
(Dollars in millions)
Available-for-
Sale Debt
Securities
Available-for-
Sale Marketable
Equity Securities Derivatives
Employee
Benefit Plans
(1)
Foreign
Currency
(2)
Total
Balance, December 31, 2007 $(1,880) $ 8,416 $(4,402) $(1,301) $ 296 $ 1,129
Net change in fair value recorded in accumulated OCI
(3)
(5,496) (4,858) 147 (3,387) (1,000) (14,594)
Net realized losses reclassified into earnings 1,420 377 797 46 – 2,640
Balance, December 31, 2008 $(5,956) $ 3,935 $(3,458) $(4,642) $ (704) $(10,825)
Cumulative adjustment for accounting change – OTTI
(4)
(71) – – – – (71)
Net change in fair value recorded in accumulated OCI 6,364 2,651 153 318 211 9,697
Net realized (gains) losses reclassified into earnings (965) (4,457) 770 232 – (4,420)
Balance, December 31, 2009 $ (628) $ 2,129 $(2,535) $(4,092) $ (493) $ (5,619)
Cumulative adjustments for accounting changes:
Consolidation of certain variable interest entities
(116) – – – – (116)
Credit-related notes 229 – – – – 229
Net change in fair value recorded in accumulated OCI 2,210 5,657 (1,108) (104) (44) 6,611
Net realized (gains) losses reclassified into earnings (981) (1,127) 407 249 281 (1,171)
Balance, December 31, 2010 $ 714 $ 6,659 $(3,236) $(3,947) $ (256) $ (66)
(1)
Net change in fair value represents after-tax adjustments based on the final year-end actuarial valuations.
(2)
Net change in fair value represents only the impact of changes in spot foreign exchange rates on the Corporation’s net investment in non-U.S. operations and related hedges.
(3)
For more information on employee benefit plans, see Note 19 – Employee Benefit Plans.
(4)
Effective January 1, 2009, the Corporation adopted new accounting guidance on the recognition of OTTI losses on debt securities. For additional information on the adoption of this accounting guidance, see Note 1 – Summary of
Significant Accounting Principles and Note 5 – Securities.
Bank of America 2010 211