PNC Bank 2015 Annual Report Download - page 68

O FF -B ALANCE S HEET A RRANGEMENTS A ND
V ARIABLE I NTEREST E NTITIES
We engage in a variety of activities that involve entities that
are not consolidated or otherwise reflected in our
Consolidated Balance Sheet that are generally referred to as
“off-balance sheet arrangements.” Additional information on
these types of activities is included in the following sections
of this Report:
• Commitments, including contractual obligations and
other commitments, included within the Risk
Management section of this Item 7, and
• Note 2 Loan Sale and Servicing Activities and
Variable Interest Entities,
• Note 11 Borrowed Funds,
• Note 16 Equity, and
• Note 21 Commitments and Guarantees, all of which
are in the Notes To Consolidated Financial
Statements included in Item 8 of this Report.
PNC consolidates variable interest entities (VIEs) when we
are deemed to be the primary beneficiary. The primary
beneficiary of a VIE is determined to be the party that meets
both of the following criteria: (i) has the power to make
decisions that most significantly affect the economic
performance of the VIE; and (ii) has the obligation to absorb
losses or the right to receive benefits that in either case could
potentially be significant to the VIE.
A summary of VIEs, including those that we have
consolidated and those in which we hold variable interests but
have not consolidated into our financial statements, as of
December 31, 2015 and December 31, 2014 is included in
Note 2 in the Notes To Consolidated Financial Statements
included in Item 8 of this Report.
Trust Preferred Securities and REIT Preferred
Securities
See Note 11 Borrowed Funds and Note 16 Equity in the Notes
To Consolidated Financial Statements in Item 8 of this Report
for additional information on trust preferred securities issued
by PNC Capital Trust C and REIT preferred securities issued
by PNC Preferred Funding Trust I and PNC Preferred Funding
Trust II including information on contractual limitations
potentially imposed on payments (including dividends) with
respect to PNC and PNC Bank’s equity capital securities.
50 The PNC Financial Services Group, Inc. – Form 10-K