SunTrust 2013 Annual Report Download - page 180

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Notes to Consolidated Financial Statements, continued
164
Year Ended December 31, 2013
(Dollars in millions)
Amount of pre-
tax gain/(loss)
recognized in
OCI on Derivatives
(Effective Portion)
Classification of gain/(loss)
reclassified from
AOCI into Income
(Effective Portion)
Amount of pre-tax
gain
reclassified from
AOCI into Income
(Effective Portion)
Derivatives in cash flow hedging relationships:
Interest rate contracts hedging forecasted debt ($2) Interest on long-term debt $—
Interest rate contracts hedging floating rate loans118 Interest and fees on loans 327
Total $16 $327
1 During the year ended December 31, 2013, the Company also reclassified $90 million pre-tax gains from AOCI into net interest income. These gains related to hedging relationships
that have been previously terminated or de-designated and are reclassified into earnings in the same period in which the forecasted transaction occurs.
Year Ended December 31, 2013
(Dollars in millions)
Amount of loss on
Derivatives
recognized in Income
Amount of gain on related
Hedged Items
recognized in Income
Amount of loss
recognized in
Income on Hedges
(Ineffective Portion)
Derivatives in fair value hedging relationships:
Interest rate contracts hedging fixed rate debt1($36) $33 ($3)
1 Amounts are recognized in trading income in the Consolidated Statements of Income.
(Dollars in millions)
Classification of gain/(loss)
recognized in Income on Derivatives
Amount of gain/(loss)
recognized in Income
on Derivatives during the
Year Ended December 31, 2013
Derivatives not designated as hedging instruments:
Interest rate contracts covering:
Fixed rate debt Trading income $2
MSRs Mortgage servicing related income (284)
LHFS, IRLCs Mortgage production related income/(loss) 289
Trading activity Trading income 59
Foreign exchange rate contracts covering:
Commercial loans Trading income 1
Trading activity Trading income 23
Credit contracts covering:
Loans Other noninterest income (4)
Trading activity Trading income 21
Equity contracts - trading activity Trading income (15)
Other contracts - IRLCs Mortgage production related income/(loss) 98
Total $190
The impacts of derivatives on the Consolidated Statements of Income and the Consolidated Statements of Shareholders'
Equity for the year ended December 31, 2012, are presented below:
Year Ended December 31, 2012
(Dollars in millions)
Amount of pre-
tax gain/(loss)
recognized in
OCI on Derivatives
(Effective Portion)
Classification of gain/(loss)
reclassified from
AOCI into Income
(Effective Portion)
Amount of pre-
tax gain/(loss)
reclassified from
AOCI into Income
(Effective Portion)
Derivatives in cash flow hedging relationships:
Equity contracts hedging Securities AFS 1($171) Net securities gains ($365)
Interest rate contracts hedging Floating rate loans 2 252 Interest and fees on loans 337
Total $81 ($28)
1 During the year ended December 31, 2012, the Company also recognized $60 million of pre-tax gains directly into net securities gains related to mark-to-market changes of the
Coke hedging contracts when the cash flow hedging relationship failed to qualify for hedge accounting.
2 During the year ended December 31, 2012, the Company also reclassified $171 million pre-tax gains from AOCI into net interest income. These gains related to hedging relationships
that have been previously terminated or de-designated and are reclassified into earnings in the same period in which the forecasted transaction occurs.