SunTrust 2011 Annual Report Download - page 155
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Please find page 155 of the 2011 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.Notes to Consolidated Financial Statements (Continued)
139
and $123 million, respectively. See Note 19, “Fair Value Election and Measurement,” for further discussion on the impact
of impairment charges on affordable housing partnership investments.
Registered and Unregistered Funds Advised by RidgeWorth
RidgeWorth, a registered investment advisor and majority owned subsidiary of the Company, serves as the investment
advisor for various private placement, common and collective funds, and registered mutual funds (collectively the
“Funds”). The Company evaluates these Funds to determine if the Funds are VIEs. In February 2010, the FASB issued
guidance that defers the application of the existing VIE consolidation guidance for investment funds meeting certain
criteria. All of the registered and unregistered Funds advised by RidgeWorth meet the scope exception criteria and thus
are not evaluated for consolidation under the guidance. Accordingly, the Company continues to apply the consolidation
guidance in effect prior to the issuance of the existing guidance to interests in funds that qualify for the deferral.
The Company has concluded that some of the Funds are VIEs. However, the Company has concluded that it is not the
primary beneficiary of these funds as the Company does not absorb a majority of the expected losses nor expected returns
of the funds. The Company’s exposure to loss is limited to the investment advisor and other administrative fees it earns
and if applicable, any equity investments. The total unconsolidated assets of these funds as of December 31, 2011 and
2010 were $1.1 billion and $1.9 billion, respectively.
The Company does not have any contractual obligation to provide monetary support to any of the Funds. The Company
did not provide any significant support, contractual or otherwise, to the Funds during the years ended December 31, 2011
and 2010.
NOTE 12 - LONG-TERM DEBT AND CONTRACTUAL COMMITMENTS
Long-term debt at December 31 consisted of the following:
(Dollars in millions)
Parent Company Only
Senior, fixed rate 1
Senior, variable rate
Subordinated, fixed rate
Junior subordinated, fixed rate
Junior subordinated, variable rate
Total Parent Company debt (excluding intercompany of $160 as of
December 31, 2011 and 2010)
Subsidiaries
Senior, fixed rate 2
Senior, variable rate 3
Subordinated, fixed rate 4
Subordinated, variable rate
Total subsidiaries debt
Total long-term debt
2011
$2,719
1,527
200
1,197
651
6,294
350
2,504
1,260
500
4,614
$10,908
2010
$922
1,512
200
1,693
651
4,978
2,640
3,443
2,087
500
8,670
$13,648
Interest Rates
3.25% - 6.00%
0.58 - 3.00
6.00
6.10 - 7.88
1.12 - 3.98
0.50 - 10.75
0.52 - 7.50
5.00 - 7.25
0.67 - .80
Maturities
2012 - 2028
2012 - 2019
2026
2036 - 2068
2027 - 2034
2012 - 2048
2012 - 2037
2015 - 2028
2015
1 Debt recorded at fair value, $448 million and $460 million, at December 31, 2011 and 2010, respectively.
2 Includes leases and other obligations that do not have a stated interest rate.
3 Debt recorded at fair value, $289 million and $290 million, at December 31, 2011 and 2010, respectively.
4 Debt recorded at fair value.
Long-term debt included $460 million and $1.5 billion of foreign denominated debt at December 31, 2011 and 2010, respectively.
Maturities of long-term debt are: 2012 – $2.4 billion; 2013 – $136 million; 2014 – $19 million; 2015 – $799 million; 2016 – $1.1
billion; and thereafter – $6.5 billion. Government guaranteed debt issued under the FDIC's Temporary Liquidity Guarantee Program
was $576 million and $2.7 billion at December 31, 2011 and 2010, respectively.
Restrictive provisions of several long-term debt agreements prevent the Company from creating liens on, disposing of, or issuing
(except to related parties) voting stock of subsidiaries. Further, there are restrictions on mergers, consolidations, certain leases,
sales or transfers of assets, minimum shareholders’ equity, and maximum borrowings by the Company. As of December 31, 2011,
the Company was in compliance with all covenants and provisions of long-term debt agreements. As currently defined by federal
bank regulators, long-term debt of $1.9 billion and $2.4 billion as of December 31, 2011 and 2010, respectively, qualified as Tier
1 capital, and long-term debt of $1.6 billion and $1.8 billion as of December 31, 2011 and 2010, respectively, qualified as Tier 2
capital. As of December 31, 2011, the Company had collateral pledged to the FHLB of Atlanta to support $10.8 billion of available
borrowing capacity with $27 million of long-term debt and $7.0 billion of short-term debt outstanding at December 31, 2011.