SunTrust 2014 Annual Report Download - page 115

Notes to Consolidated Financial Statements, continued
92
Accounting Standards Recently Adopted and Pending Accounting Pronouncements
The following table provides a brief description of recent accounting pronouncements that could have a material effect on the
Company's financial statements:
Standard Description Date of adoption Effect on the financial statements or other significant matters
Standards adopted in 2014
ASU 2014-01, Accounting
for Investments in
Qualified Affordable
Housing Projects
The ASU allows the use of the proportional amortization
method for investments in qualified affordable housing
projects if certain conditions are met. Under the
proportional amortization method, the initial cost of the
investment is amortized in proportion to the tax credits
and other tax benefits received and the net investment
performance is recognized in the income statement as a
component of income tax expense. The ASU provides
for a practical expedient, which allows for amortization
of the investment in proportion to only the tax credits if
it produces a measurement that is substantially similar
to the measurement that would result from using both
tax credits and other tax benefits.
January 1,
2014 The standard is required to be applied retrospectively; therefore amounts included
in noninterest expense in periods prior to
adoption have been reclassified. For the years
ended December 31, 2013 and 2012, $49
million and $39 million, respectively, of
investment amortization expense was
reclassified from other noninterest expense to
provision for income taxes in the
Consolidated Statements of Income. For
additional information on the impact of
adoption see Note 10, "Certain Transfers of
Financial Assets and Variable Interest
Entities."
Standards not yet adopted
ASU 2014-09, Revenue
from Contracts with
Customers
The ASU supersedes the revenue recognition
requirements in ASC Topic 605, Revenue Recognition,
and most industry-specific guidance throughout the
Industry Topics of the Codification. The core principle
of the ASU is that an entity should recognize revenue to
depict the transfer of promised goods or services to
customers in an amount that reflects the consideration
to which the entity expects to be entitled in exchange for
those goods or services.
January 1,
2017 The Company is continuing to evaluate the impact of the ASU.
NOTE 2 - ACQUISITIONS/DISPOSITIONS
During the years ended December 31, 2014, 2013, and 2012, the Company had the following notable disposition:
(Dollars in millions)
2014 Date Cash Received/(Paid) Goodwill Other Intangibles Pre-tax Gain
Sale of RidgeWorth 5/30/2014 $193 ($40) ($9) $105
On May 30, 2014, the Company completed the sale of
RidgeWorth, its asset management subsidiary with
approximately $49.1 billion in assets under management, to an
investor group led by a private equity fund managed by Lightyear
Capital LLC. The Company received cash proceeds of $193
million, removed $96 million in net assets and $23 million in
noncontrolling interests, and recognized a pre-tax gain of $105
million in connection with the sale, net of transaction-related
expenses.
The Company’s results for the year ended December 31,
2014, included income before provision for income taxes related
to RidgeWorth, excluding the gain on sale, of $22 million,
comprised of $81 million of revenue and $59 million of expense.
For the year ended December 31, 2013, the Company’s income
before provision for income taxes included $64 million related
to RidgeWorth, comprised of $194 million of revenue and $130
million of expense. For the year ended December 31, 2012, the
Company’s income before provision for income taxes included
$67 million related to RidgeWorth, comprised of $202 million
of revenue and $135 million of expense.
The financial results of RidgeWorth, including the gain on
sale, are reflected in the Corporate Other segment. There were
no other material acquisitions or dispositions during the three
years ended December 31, 2014.