SunTrust 2013 Annual Report Download - page 163

Notes to Consolidated Financial Statements, continued
147
In December 2011, the Company authorized 5,010 shares and issued 1,025 shares of Perpetual Preferred Stock, Series B, no
par value and $100,000 liquidation preference per share (the Series B Preferred Stock). The Series B Preferred Stock has no
stated maturity and will not be subject to any sinking fund or other obligation of the Company. Dividends on the shares are
noncumulative and, if declared, will accrue and be payable quarterly at a rate per annum equal to the greater of three-month
LIBOR plus 0.65%, or 4.00%. Shares of the Series B Preferred Stock have priority over the Company's common stock with
regard to the payment of dividends and, as such, the Company may not pay dividends on or repurchase, redeem, or otherwise
acquire for consideration shares of its common stock unless dividends for the Series B Preferred Stock have been declared
for that period and sufficient funds have been set aside to make payment. The Series B Preferred Stock was immediately
redeemable upon issuance at the Company's option at a redemption price equal to $100,000 per share, plus any declared and
unpaid dividends. Except in certain limited circumstances, the Series B Preferred Stock does not have any voting rights.
In December 2012, the Company authorized 5,000 shares and issued 4,500 shares of Perpetual Preferred Stock, Series E, no
par value and $100,000 liquidation preference per share (the Series E Preferred Stock). The Series E Preferred Stock has no
stated maturity and will not be subject to any sinking fund or other obligation of the Company to redeem, repurchase, or retire
the shares. Dividends on the shares are noncumulative and, if declared, will accrue and be payable quarterly at a rate per
annum of 5.875%. Shares of the Series E Preferred Stock have priority over the Company's common stock with regard to the
payment of dividends and rank equally with the Company's outstanding Perpetual Preferred Stock, Series A and Series B and,
as such, the Company may not pay dividends on or repurchase, redeem, or otherwise acquire for consideration shares of its
common stock unless dividends for the Series E Preferred Stock have been declared for that period and sufficient funds have
been set aside to make payment. The Series E Preferred Stock is redeemable, at the option of the Company, on any dividend
payment date occurring on or after March 15, 2018, at a redemption price equal to $100,000 per share, plus any declared and
unpaid dividends, without regard to any undeclared dividends. Except in certain limited circumstances, the Series E Preferred
Stock does not have any voting rights.
The Company repurchased its Series C and D Cumulative Perpetual Preferred Stock from the U.S. Treasury in March 2011.
In September 2011, the U.S. Treasury sold, in a public auction, a total of 17.9 million of the Company's warrants to purchase
11.9 million shares of the Company's common stock at an exercise price of $44.15 per share (Series B warrants) and 6 million
shares of the Company's common stock at an exercise price of $33.70 per share (Series A warrants). The warrants were issued
by the Company to the U.S. Treasury in connection with its investment in the Company under the CPP and have expiration
dates of November 2018 (Series B) and December 2018 (Series A). In conjunction with the U.S. Treasury's auction, the
Company acquired 4 million of the Series A warrants for $11 million and retired them.
NOTE 14 - INCOME TAXES
The components of income tax provision included in the Consolidated Statements of Income during the years ended December
31 were as follows:
(Dollars in millions) 2013 2012 2011
Current income tax (benefit)/expense:
Federal ($206) $553 ($4)
State (16) 26 —
Total ($222) $579 ($4)
Deferred income tax expense/(benefit):
Federal $444 $229 $81
State 51 (35) 2
Total 495 194 83
Total income tax expense $273 $773 $79
The income tax provision does not reflect the tax effects of unrealized gains and losses and other income and expenses recorded
in AOCI. For additional information on AOCI, see Note 21, “Accumulated Other Comprehensive Income.”