SunTrust 2013 Annual Report Download - page 181

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Notes to Consolidated Financial Statements, continued
165
Year Ended December 31, 2012
(Dollars in millions)
Amount of gain on
Derivatives recognized
in Income
Amount of loss on related
Hedged Items
recognized in Income
Amount of gain/(loss)
recognized in Income
on Hedges (Ineffective
Portion)
Derivatives in fair value hedging relationships1:
Interest rate contracts hedging Fixed rate debt $5 ($5) $—
Interest rate contracts hedging Securities AFS 1 (1) —
Total $6 ($6) $—
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, 2012
Derivatives not designated as hedging instruments:
Interest rate contracts covering:
Fixed rate debt Trading income ($2)
MSRs Mortgage servicing related income 284
LHFS, IRLCs, LHFI-FV Mortgage production related income/(loss) (331)
Trading activity Trading income 86
Foreign exchange rate contracts covering:
Commercial loans and foreign-denominated debt Trading income 129
Trading activity Trading income 14
Credit contracts covering:
Loans 1Other noninterest income (8)
Trading activity Trading income 24
Equity contracts - trading activity Trading income 8
Other contracts - IRLCs Mortgage production related income/(loss) 930
Total $1,134
1 For the six months ended June 30, 2012, losses of $3 million were recorded in trading income.
The impacts of derivatives on the Consolidated Statements of Income and the Consolidated Statements of Shareholders'
Equity for the year ended December 31, 2011, are presented below:
Year Ended December 31, 2011
(Dollars in millions)
Amount of pre-
tax gain/(loss)
recognized in
OCI on Derivatives
(Effective Portion)
Classification of gain
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:
Equity contracts hedging Securities AFS ($46) Net securities gains $—
Interest rate contracts hedging Floating rate loans 1 730 Interest and fees on loans 423
Total $684 $423
1 During the year ended December 31, 2011, the Company also reclassified $202 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, 2011
(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$51 ($52) ($1)
1 Amounts are recognized in trading income in the Consolidated Statements of Income.