SunTrust 2013 Annual Report Download - page 182

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Notes to Consolidated Financial Statements, continued
166
(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, 2011
Derivatives not designated as hedging instruments:
Interest rate contracts covering:
Fixed rate debt Trading income ($5)
MSRs Mortgage servicing related income 572
LHFS, IRLCs, LHFI-FV Mortgage production related income/(loss) (281)
Trading activity Trading income 113
Foreign exchange rate contracts covering:
Commercial loans and foreign-denominated debt Trading income (4)
Trading activity Trading income 18
Credit contracts covering:
Loans Trading income (1)
Trading activity Trading income 15
Equity contracts - trading activity Trading income (3)
Other contracts - IRLCs Mortgage production related income/(loss) 355
Total $779
Netting of Derivatives
The Company has various financial assets and financial liabilities that are subject to enforceable master netting agreements or
similar agreements. The Company's securities borrowed or purchased under agreements to resell and securities sold under
agreements to repurchase that are subject to enforceable master netting agreements or similar agreements are discussed in Note
3, "Federal Funds Sold and Securities Borrowed or Purchased Under Agreements to Resell." The Company enters into ISDA
or other legally enforceable industry standard master netting arrangements with derivative counterparties. Under the terms of
the master netting arrangements, all transactions between the Company and the counterparty constitute a single business
relationship such that in the event of default, the nondefaulting party is entitled to set off claims and apply property held by that
party in respect of any transaction against obligations owed. Any payments, deliveries, or other transfers may be applied against
each other and netted.
The table below shows total gross derivative assets and liabilities which are adjusted on an aggregate basis, where applicable
to take into consideration the effects of legally enforceable master netting agreements, including any cash collateral received or
paid, for the net reported amount in the Consolidated Balance Sheets. Also included in the table is financial instrument collateral
related to legally enforceable master netting agreements that represents securities collateral received or pledged and customer
cash collateral held at third-party custodians. These amounts are not offset on the Consolidated Balance Sheets but are shown
as a reduction to total derivative assets and liabilities in the table to derive net derivative assets and liabilities. These amounts
are limited to the derivative asset/liability balance, and accordingly, do not include excess collateral received/pledged.