SunTrust 2013 Annual Report Download - page 160

Notes to Consolidated Financial Statements, continued
144
Long-term debt
Long-term debt at December 31 was as follows:
(Dollars in millions) 2013 2012 Interest Rates Maturities
Parent Company Only
Senior, fixed rate $3,001 $2,270 1.00% - 6.05% 2014 - 2028
Senior, variable rate 283 152 0.39 - 3.25 2015 - 2019
Subordinated, fixed rate 200 200 6.00 2026
Junior subordinated, variable rate 627 627 0.89 - 1.23 2027 - 2028
Total Parent Company debt (excluding intercompany
of $160 at December 31, 2013 and 2012) 4,111 3,249
Subsidiaries
Senior, fixed rate 11,006 426 0.00 - 9.65 2014 - 2053
Senior, variable rate 23,783 3,846 0.36 - 6.98 2015 - 2043
Subordinated, fixed rate 31,300 1,336 5.00 - 7.25 2015 - 2020
Subordinated, variable rate 500 500 0.53 - 0.55 2015
Total subsidiaries debt 6,589 6,108
Total long-term debt $10,700 $9,357
1 Includes leases and other obligations that do not have a stated interest rate.
2 Includes $256 million and $286 million of debt recorded at fair value at December 31, 2013 and 2012, respectively.
3 Debt recorded at fair value.
Maturities of long-term debt are: 2014 – $9 million; 2015 – $817 million; 2016 – $1.1 billion; 2017 – $4.7 billion; 2018 –
$1.6 billion; and thereafter – $2.4 billion. During 2013, the Company issued $600 million of 2.75% senior notes under the
Global Bank Note program that will mature in 2023 and $750 million of Parent Company 2.35% senior notes that will mature
in 2018. The Company may call these notes beginning one month prior to each issuance's maturity date. The Company had
no additional material issuances, repurchases, or extinguishments of long-term debt during the year.
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. At December 31,
2013, 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 $627 million qualified as Tier 1 capital at both December 31, 2013 and 2012,
and long-term debt of $1.1 billion and $1.5 billion qualified as Tier 2 capital at December 31, 2013 and 2012, respectively.
At December 31, 2013, the Company had collateral pledged to the FHLB of Atlanta to support $12.3 billion of available
borrowing capacity with $3.0 billion of long-term debt and $4.0 billion of short-term debt outstanding at December 31, 2013.
The Company does not consolidate certain wholly-owned trusts which had been formed for the sole purpose of issuing trust
preferred securities. The proceeds from the trust preferred securities issuances were invested in junior subordinated debentures
of the Parent Company. The obligations of these debentures constitute a full and unconditional guarantee by the Parent Company
of the trust preferred securities.
Contractual Commitments
In the normal course of business, the Company enters into certain contractual arrangements. Such arrangements include
obligations to make future payments on lease arrangements, contractual commitments for capital expenditures, and service
contracts. At December 31, 2013, the Company had the following unconditional obligations:
(Dollars in millions) 1 year or less 1-3 years 3-5 years After 5 years Total
Operating lease obligations $208 $386 $262 $354 $1,210
Capital lease obligations 1134210
Purchase obligations 2284 65 31 8 388
Total $493 $454 $297 $364 $1,608
1 Amounts do not include accrued interest.
2 Represents aggregation of termination fees on legally binding contracts to purchase goods or services that have a minimum termination fee of $5 million
or more. Amounts paid under these contracts totaled $194 million during 2013; however, there is no minimum annual payment other than termination fees
required.