SunTrust 2014 Annual Report Download - page 158

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Notes to Consolidated Financial Statements, continued
135
Year Ended December 31, 2012
(Dollars in millions)
Amount of
pre-tax (loss)/gain
recognized in OCI
on Derivatives
(Effective Portion)
Classification of (loss)/gain
reclassified from AOCI into
Income
(Effective Portion)
Amount of
pre-tax (loss)/gain
reclassified from AOCI
into Income
(Effective Portion)
Derivatives in cash flow hedging relationships:
Equity contracts hedging Securities AFS 1($171) Net securities (losses)/gains ($365)
Interest rate contracts hedging Floating rate loans 2 252 Interest and fees on loans 337
Total $81 ($28)
1 During the year ended December 31, 2012, the Company also recognized $60 million of pre-tax gains directly into net securities (losses)/gains related to mark-to-market changes of The
Coca-Cola Company hedging contracts when the cash flow hedging relationship failed to qualify for hedge accounting.
2 During the year ended December 31, 2013, the Company also reclassified $171 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, 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 relationships 1:
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 (loss)/gain
recognized in Income on Derivatives
Amount of (loss)/gain
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 (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 930
Total $1,134
1 For the six months ended June 30, 2012, losses of $3 million were recorded in trading income.