SunTrust 2006 Annual Report Download - page 125

Download and view the complete annual report

Please find page 125 of the 2006 SunTrust annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 159

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143
  • 144
  • 145
  • 146
  • 147
  • 148
  • 149
  • 150
  • 151
  • 152
  • 153
  • 154
  • 155
  • 156
  • 157
  • 158
  • 159

SUNTRUST BANKS, INC.
Notes to Consolidated Financial Statements (Continued)
A contribution of $7.0 million was made on December 29, 2006 and invested in a short-term fund.
Equity securities do not include SunTrust common stock for the Other Postretirement Benefit Plans.
Funded Status
The funded status of the plans, as of December 31, was as follows:
Retirement Benefits
Supplemental Retirement
Benefits
Other Postretirement
Benefits
(Dollars in thousands) 2006 2005 2006 2005 2006 2005
Fair value of plan assets $2,216,179 $1,870,310 $- $- $162,973 $161,310
Benefit obligations (1,812,130) (1,727,282) (122,837) (122,698) (209,617) (191,199)
Funded status 404,049 143,028 (122,837) (122,698) (46,644) (29,889)
Amounts not yet recognized:
Unrecognized net loss -589,261 -41,062 -85,355
Unrecognized prior service cost -1,837 -14,364 --
Unrecognized net transition obligation -----16,251
Net amount recognized $404,049 $734,126 ($122,837) ($67,272) ($46,644) $71,717
At December 31, 2005, the total outstanding unrecognized net loss to be recognized in future years for
all retirement and postretirement benefits was $715.7 million. The key sources of the cumulative net
losses are attributable to (1) sustained decreases in the discount rate for the past several years, (2) recent
compensation increases which have exceeded expectations and resulted in the increase in the salary
increase assumption at December 31, 2005, and (3) investment losses in 2000 through 2002 have not
been fully offset by recent investment gains. As discussed previously, SunTrust reviews its assumptions
annually to ensure they represent best estimates for the future and will, therefore, minimize future gains
and losses.
SunTrust adopted the balance sheet recognition provisions of SFAS No. 158 on December 31, 2006.
The adoption of SFAS No. 158 reduced SunTrust’s stockholders’ equity at December 31, 2006 by
$385.0 million. SFAS No. 158 did not affect the results of operations.
The amounts recognized in the Consolidated Balance Sheets consist of:
Before
Application of
SFAS No. 158 Adjustments
After
Application of
SFAS No. 158
(Dollars in thousands)
Other assets $7,234,336 ($524,884) $6,709,452
Total assets 182,686,493 (524,884) 182,161,609
Other liabilities 5,942,698 (139,857) 5,802,841
Total liabilities 164,487,860 (139,857) 164,348,003
Accumulated other comprehensive income 1,310,976 (385,027) 925,949
Total shareholders’ equity 18,198,633 (385,027) 17,813,606
112