SunTrust 2014 Annual Report Download - page 136

Notes to Consolidated Financial Statements, continued
113
VIEs. In limited circumstances, the Company owns both the
limited partner and general partner interests, in which case the
related partnerships are not considered VIEs and are
consolidated by the Company.
The Company consolidated its affordable housing
partnerships under such circumstances, and has designated those
partnerships as held for sale, and accordingly has recognized
them at the lower of their carrying value or estimated fair value
less costs to sell. At December 31, 2014, the value of properties
held for sale was $79 million and disposition is expected to be
completed in the first quarter of 2015.
When the Company is the limited partner and there is a third
party general partner, the Company has determined that it is not
the primary beneficiary of these partnerships and accounts for
its interest in accordance with the accounting requirements for
investments in affordable housing projects. Often times, the
general partner or an affiliate of the general partner provides
guarantees to the limited partner, which protects the Company
from losses attributable to operating deficits, construction
deficits, and tax credit allocation deficits. Assets of $1.6 billion
and $1.5 billion in these partnerships were not included in the
Consolidated Balance Sheets at December 31, 2014 and 2013,
respectively. The Company's limited partner interests had
carrying values of $363 million and $252 million at December
31, 2014 and 2013, respectively, and are recorded in other assets
in the Company’s Consolidated Balance Sheets. The Company’s
maximum exposure to loss for these investments totaled $910
million and $697 million at December 31, 2014 and 2013,
respectively. The Company’s maximum exposure to loss would
result from the loss of the equity investments along with $412
million and $303 million of loans, interest-rate swaps, or letters
of credit issued by the Company to the entities at December 31,
2014 and 2013, respectively. The difference between the
maximum exposure to loss and the investment and loan balances
is primarily attributable to the unfunded equity commitments.
Unfunded equity commitments are amounts that the Company
has committed to the entities upon the entities meeting certain
conditions. If these conditions are met, the Company will invest
these additional amounts in the entities.
As indicated in Note 1, "Significant Accounting Policies,"
the Company adopted ASU 2014-01 in the first quarter of 2014,
which allowed amortization of qualified affordable housing
investments within the scope of the ASU to be presented net of
the income tax credits in the provision for income taxes. During
the years ended December 31, 2014, 2013, and 2012, the
Company recognized $66 million, $64 million and $63 million
of tax credits, respectively, and $61 million, $49 million and $39
million of amortization expense, respectively, in the provision
for income taxes. For community development investments not
within the scope of ASU 2014-01, the Company continues to
record amortization of the investment in amortization expense,
a component of noninterest expense. Also included in
amortization expense on the Company's Consolidated
Statements of Income is the amortization of intangible assets.
See Note 9, "Goodwill and Other Intangible Assets," for
additional information.
Additionally, the Company owns noncontrolling interests in
funds whose purpose is to invest in community developments.
At December 31, 2014 and 2013, the Company's investment in
these funds totaled $113 million and $138 million, respectively,
and the Company's maximum exposure to loss on its equity
investments, which is comprised of its investments in the funds
plus any additional unfunded equity commitments, was $236
million and $217 million, respectively.
NOTE 11 - BORROWINGS AND CONTRACTUAL COMMITMENTS
Other short-term borrowings
Other short-term borrowings at December 31 were as follows:
2014 2013
(Dollars in millions) Balance Interest Rate Balance Interest Rate
FHLB advances $4,000 0.23% $4,000 0.21%
Master notes 1,280 0.15 1,554 0.28
Dealer collateral 354 0.13 232 0.10
Other — — 2 2.70
Total other short-term borrowings $5,634 $5,788