Regions Bank 2011 Annual Report Download - page 238

The approximate future minimum rental commitments as of December 31, 2011, 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)
2012 .................................................. $ 127 $ 37 $ 164
2013 .................................................. 121 21 142
2014 .................................................. 112 2 114
2015 .................................................. 104 1 105
2016 .................................................. 92 — 92
Thereafter .............................................. 477 — 477
$1,033 $ 61 $1,094
LEGAL CONTINGENCIES
Regions and its affiliates are subject to loss contingencies related to litigation and claims arising in the
ordinary course of business. Regions evaluates these contingencies based on information currently available,
including advice of counsel and assessment of available insurance coverage. Regions establishes accruals for
litigation and claims when a loss contingency is considered probable and the related amount is reasonably
estimable. Any accruals are periodically reviewed and may be adjusted as circumstances change. For certain
matters, when able to do so, Regions also estimates loss contingencies for possible litigation and claims, whether
or not there is an accrued probable loss. Where Regions is able to estimate such possible losses, Regions
estimates that it is reasonably possible it could incur losses, in excess of amounts accrued, in an aggregate
amount up to approximately $340 million as of December 31, 2011, with it also being reasonably possible that
Regions could incur no losses. The estimates included in this amount are based on analysis of currently available
information and are subject to significant judgment and to change as new information becomes available. Due to
the inherent unpredictability of outcomes of litigation and claims, any amounts accrued or included in this
aggregate amount may not represent the ultimate loss to Regions and, therefore, ultimate losses may be
significantly different than the amounts accrued or included in this aggregate amount.
Assessments of litigation and claims exposures are difficult due to many factors that involve inherent
unpredictability. Those factors include the following: the varying stages of the proceedings, particularly in the
early stages; unspecified damages; damages other than compensatory such as punitive damages; multiple
defendants and jurisdictions; whether discovery has begun or not; and whether the claim involves a class-action.
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. As a
result of some of these factors, Regions may be unable to estimate reasonably possible losses with respect to
some of the matters disclosed below. The aggregated estimated amount provided above therefore may not
include an estimate for every matter disclosed below.
While the final outcome of litigation and claims exposures is inherently unpredictable, management is
currently of the opinion that the outcome of pending and threatened litigation would not have a material effect on
Regions’ business, consolidated financial position, results of operations or cash flows as a whole. However, in
the event of unexpected future developments, it is reasonably possible that an adverse outcome in any of the
matters discussed below could be material to Regions’ business, consolidated financial position, results of
operations or cash flows for any particular reporting period of occurrence.
Beginning in December 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
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