SunTrust 2014 Annual Report Download - page 138

Notes to Consolidated Financial Statements, continued
115
At December 31, 2014, the Company had the following unconditional obligations:
(Dollars in millions) 1 year or less 1-3 years 3-5 years After 5 years Total
Operating leases $205 $384 $194 $328 $1,111
Capital leases 12 3 4 — 9
Purchase obligations 2421 38 3 — 462
Total $628 $425 $201 $328 $1,582
1 Amounts do not include accrued interest.
2 Amounts represent termination fees for legally binding purchase obligations of $5 million or more. Payments made towards the purchase of goods or services under these
purchase obligations totaled $223 million during 2014.
NOTE 12 – NET INCOME PER COMMON SHARE
Equivalent shares of 15 million, 18 million, and 23 million
related to common stock options and common stock warrants
outstanding at December 31, 2014, 2013, and 2012, respectively,
were excluded from the computations of diluted net income per
average common share because they would have been anti-
dilutive.
Reconciliations of net income to net income available to
common shareholders and the difference between average basic
common shares outstanding and average diluted common shares
outstanding are included below.
Year Ended December 31
(In millions, except per share data) 2014 2013 2012
Net income $1,774 $1,344 $1,958
Preferred dividends (42)(37) (12)
Dividends and undistributed earnings allocated to unvested shares (10)(10) (15)
Net income available to common shareholders $1,722 $1,297 $1,931
Average basic common shares 528 534 534
Effect of dilutive securities:
Stock options 11 1
Restricted stock and warrants 44 3
Average diluted common shares 533 539 538
Net income per average common share - diluted $3.23 $2.41 $3.59
Net income per average common share - basic $3.26 $2.43 $3.62
NOTE 13 – CAPITAL
Following the Federal Reserve's review of and non-objection to
the Company's capital plan in conjunction with the 2014 CCAR,
the Company increased its quarterly common stock dividend
from $0.10 to $0.20 per share beginning in the second quarter
of 2014, repurchased a total of $278 million, or approximately
8.5 million shares of its outstanding common stock, and
maintained dividend payments on its preferred stock during
2014. Pursuant to its 2013 capital plan, the Company also
repurchased $50 million of its outstanding common stock in the
first quarter of 2014, bringing the total amount of common stock
repurchased in 2014 pursuant to CCAR capital plans to $328
million. The Company has capacity under its 2014 capital plan
to purchase an additional $120 million of its outstanding
common stock prior to March 31, 2015. The Company has
submitted its 2015 capital plan for review by the Federal Reserve
in conjunction with the 2015 CCAR and awaits the completion
of their review.
Additionally, during 2014, the Company recorded a $130
million tax benefit as a result of the completion of a tax authority
examination, enabling the repurchase of an additional $130
million of outstanding common stock. The purchase of this
additional common stock was incremental to the existing
availability under the CCAR capital plans. See additional
discussion of the realized tax benefit in Note 14, "Income
Taxes."
During the years ended December 31, 2014, 2013, and 2012,
the Company declared and paid common dividends totaling $371
million, or $0.70 per common share, $188 million, or $0.35 per
common share, and $107 million, or $0.20 per common share,
respectively. The Company also recognized dividends on
perpetual preferred stock totaling $42 million, $37 million, and
$12 million during the years ended December 31, 2014, 2013,
and 2012, respectively. During 2014, the dividend per share was