SunTrust 2011 Annual Report Download - page 177
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Please find page 177 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)
161
Impact of Derivatives on the Consolidated Statements of Income/(Loss) and Shareholders’ Equity
The impacts of derivatives on the Consolidated Statements of Income/(Loss) and the Consolidated Statements of Shareholders’
Equity for the years ended December 31, 2011, 2010, and 2009 are presented below. The impacts are segregated between those
derivatives that are designated in hedging relationships and those that are used for economic hedging or trading purposes, with
further identification of the underlying risks in the derivatives and the hedged items, where appropriate. The tables do not disclose
the financial impact of the activities that these derivative instruments are intended to hedge, for both economic hedges and those
instruments designated in formal, qualifying hedging relationships.
(Dollars in millions)
Derivatives in cash flow hedging relationships
Equity contracts hedging Securities AFS
Interest rate contracts hedging Floating rate loans
Total
Year Ended December 31, 2011
Amount of pre-tax gain/(loss)
recognized in
OCI on Derivatives
(Effective Portion)
($46)
730
$684
Classification of gain
reclassified from
AOCI into Income
(Effective Portion)
Interest and fees on loans
Amount of pre-tax gain
reclassified from
AOCI into Income
(Effective Portion) 1
$—
423
$423
1 During the year ended December 31, 2011, the Company also reclassified $202 million in pre-tax gains from AOCI into net interest income. These gains
related to hedging relationships that have been previously terminated or de-designated.
(Dollars in millions)
Derivatives in fair value hedging relationships1
Interest rate contracts hedging Fixed rate debt
Year Ended December 31, 2011
Amount of gain
on Derivatives
recognized in Income
$51
Amount of loss
on related Hedged Items
recognized in Income
($52)
Amount of loss
recognized in Income on Hedges
(Ineffective Portion)
($1)
1 Amounts are recognized in trading income/(loss) in the Consolidated Statements of Income/(Loss).
(Dollars in millions)
Derivatives not designated as hedging instruments
Interest rate contracts covering:
Fixed rate debt
MSRs
LHFS, IRLCs, LHFI-FV
Trading activity
Foreign exchange rate contracts covering:
Foreign-denominated debt and commercial loans
Trading activity
Credit contracts covering:
Loans
Other
Equity contracts - trading activity
Other contracts:
IRLCs
Total
Classification of gain/(loss)
recognized in Income on Derivatives
Trading income/(loss)
Mortgage servicing related income
Mortgage production related (loss)/income
Trading income/(loss)
Trading income/(loss)
Trading income/(loss)
Trading income/(loss)
Trading income/(loss)
Trading income/(loss)
Mortgage production related (loss)/income
Amount of gain/(loss)
recognized in Income
on Derivatives for the
Year Ended
December 31, 2011
($5)
572
(281)
113
(4)
18
(1)
15
(3)
355
$779