Regions Bank 2010 Annual Report Download - page 204

The approximate future minimum rental commitments as of December 31, 2010, for all non-cancelable
leases with initial or remaining terms of one year or more are shown in the following table. Included in these
amounts are all renewal options reasonably assured of being exercised.
Premises Equipment Total
(In millions)
2011 ............................................................. $ 129 $ 21 $ 150
2012 ............................................................. 122 18 140
2013 ............................................................. 112 4 116
2014 ............................................................. 101 1 102
2015 ............................................................. 93 — 93
Thereafter ......................................................... 515 — 515
$1,072 $ 44 $1,116
LEGAL
Regions and its affiliates are subject to litigation, including the litigation discussed below, and claims
arising in the ordinary course of business. Punitive damages are routinely claimed in these cases. Regions
continues to be concerned about the general trend in litigation involving large damage awards against financial
service company defendants. Regions evaluates these contingencies based on information currently available,
including advice of counsel and assessment of available insurance coverage. Although it is not possible to predict
the ultimate resolution or financial liability with respect to these litigation contingencies, management is
currently of the opinion that the outcome of pending and threatened litigation would not have a material effect on
Regions’ consolidated financial position, results of operations or cash flows, except to the extent indicated in the
discussion below.
Beginning in 2007, Regions and certain of its affiliates have been named in class-action lawsuits filed in
federal and state courts on behalf of investors who purchased shares of certain Regions Morgan Keegan Select
Funds (the “Funds”) and shareholders of Regions. The Funds were formerly managed by Morgan Asset
Management, Inc. Morgan Asset Management, Inc. no longer manages these Funds, which were transferred to
Hyperion Brookfield Asset Management in 2008. Certain of the Funds have since been terminated by Hyperion.
The complaints contain various allegations, including claims that the Funds and the defendants misrepresented or
failed to disclose material facts relating to the activities of the Funds. Plaintiffs have requested equitable relief
and unspecified monetary damages. These class-action lawsuits are still early in their development and no classes
have been certified. Unless and until a class is certified, the scope of the class and claims remains unknown.
There are numerous factors that result in a greater degree of complexity in class-action lawsuits as compared to
other types of litigation. Due to the many intricacies involved in class-action lawsuits at the early stages of these
matters, obtaining clarity on a reasonable estimate is difficult which may call into question its reliability. At this
stage of the lawsuits, and in view of the inherent inability to predict the outcome of litigation, particularly where
there are many claimants, Regions cannot determine the probability of a material adverse result or reasonably
estimate a range of potential exposures, if any. However, in light of the inherent uncertainties involved in these
matters, it is reasonably possible that an adverse outcome in any of these matters could be material to Regions’
business, consolidated financial position, results of operations, or cash flows for any particular reporting period.
Certain of the shareholders in these Funds and other interested parties have entered into arbitration
proceedings and individual civil claims, in lieu of participating in the class-actions, and primarily seek monetary
damages. Although it is not possible to predict the ultimate resolution or financial liability with respect to these
contingencies, management is currently of the opinion that the outcome of these proceedings would not have a
material effect on Regions’ business, consolidated financial position, results of operations or cash flows.
On April 7, 2010, the SEC, the Financial Industry Regulatory Authority (“FINRA”) and a joint state task
force of securities regulators from Alabama, Kentucky, Mississippi, and South Carolina (“Task Force”)
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