Comerica 2009 Annual Report Download - page 57

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In addition to interest rate swaps, the Corporation employs various other types of derivative instruments as
offsetting positions to mitigate exposures to interest rate and foreign currency risks associated with specific
assets and liabilities (e.g., customer loans or deposits denominated in foreign currencies). Such instruments may
include interest rate caps and floors, total return swaps, foreign exchange forward contracts and foreign
exchange swap agreements. The aggregate notional amounts of these risk management derivative instruments at
December 31, 2009 and 2008 were $253 million and $544 million, respectively.
Further information regarding risk management derivative instruments is provided in Note 10 to the
consolidated financial statements.
Customer-Initiated and Other Derivative Instruments
Interest Energy Foreign
Rate Derivative Exchange
Customer-Initiated and Other Notional Activity Contracts Contracts Contracts Totals
(in millions)
Balance at January 1, 2008 ........................ $ 8,508 $1,481 $ 2,715 $ 12,704
Additions .................................... 5,454 1,670 108,886 116,010
Maturities/amortizations .......................... (1,140) (918) (108,878) (110,936)
Terminations .................................. (480) (88) — (568)
Balance at December 31, 2008 ..................... $12,342 $2,145 $ 2,723 $ 17,210
Additions .................................... 2,527 1,734 97,715 101,976
Maturities/amortizations .......................... (2,190) (1,519) (98,360) (102,069)
Terminations .................................. (583) (23) (55) (661)
Balance at December 31, 2009 ..................... $12,096 $2,337 $ 2,023 $ 16,456
The Corporation writes and purchases interest rate caps and floors and enters into foreign exchange
contracts, interest rate swaps and energy derivative contracts to accommodate the needs of customers requesting
such services. Customer-initiated and other notional activity represented 82 percent of total interest rate, energy
and foreign exchange contracts at December 31, 2009, compared to 81 percent at December 31, 2008.
Further information regarding customer-initiated and other derivative instruments in provided in Note 10
to the consolidated financial statements.
Liquidity Risk and Off-Balance Sheet Arrangements
Liquidity is the ability to meet financial obligations through the maturity or sale of existing assets or the
acquisition of additional funds. Various financial obligations, including contractual obligations and commercial
commitments, may require future cash payments by the Corporation. The following contractual obligations
table summarizes the Corporation’s noncancelable contractual obligations and future required minimum
payments. Refer to Notes 8, 12, 13, 14, and 20 to the consolidated financial statements for further information
regarding these contractual obligations.
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