SunTrust 2014 Annual Report Download - page 159

Notes to Consolidated Financial Statements, continued
136
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
Financing Activities." 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 financial assets
and liabilities at December 31, 2014 and 2013, which are adjusted
to reflect the effects of legally enforceable master netting
agreements and cash collateral received or paid on 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.
(Dollars in millions) Gross
Amount Amount Offset
Net Amount
Presented in
Consolidated
Balance Sheets
Held/
Pledged
Financial
Instruments Net Amount
December 31, 2014
Derivative financial assets:
Derivatives subject to master netting arrangement or similar
arrangement $5,127 $4,095 $1,032 $63 $969
Derivatives not subject to master netting arrangement or similar
arrangement 25 — 25 — 25
Exchange traded derivatives 687 437 250 — 250
Total derivative financial assets $5,839 $4,532 $1,307 1$63 $1,244
Derivative financial liabilities:
Derivatives subject to master netting arrangement or similar
arrangement $5,001 $4,678 $323 $12 $311
Derivatives not subject to master netting arrangement or similar
arrangement 133 — 133 — 133
Exchange traded derivatives 443 437 6 — 6
Total derivative financial liabilities $5,577 $5,115 $462 2$12 $450
December 31, 2013
Derivative financial assets:
Derivatives subject to master netting arrangement or similar
arrangement $5,285 $4,239 $1,046 $51 $995
Derivatives not subject to master netting arrangement or similar
arrangement 12 — 12 — 12
Exchange traded derivatives 828 502 326 — 326
Total derivative financial assets $6,125 $4,741 $1,384 1$51 $1,333
Derivative financial liabilities:
Derivatives subject to master netting arrangement or similar
arrangement $4,982 $4,646 $336 $13 $323
Derivatives not subject to master netting arrangement or similar
arrangement 189 — 189 — 189
Exchange traded derivatives 502 502 — — —
Total derivative financial liabilities $5,673 $5,148 $525 2$13 $512
1 At December 31, 2014, $1.3 billion, net of $449 million offsetting cash collateral, is recognized in trading assets and derivatives within the Company's Consolidated Balance Sheets.
At December 31, 2013, $1.4 billion, net of $457 million offsetting cash collateral, is recognized in trading assets and derivatives within the Company's Consolidated Balance Sheets.
2 At December 31, 2014, $462 million, net of $1.0 billion offsetting cash collateral, is recognized in trading liabilities and derivatives within the Company's Consolidated Balance Sheets.
At December 31, 2013, $525 million, net of $864 million offsetting cash collateral, is recognized in trading liabilities and derivatives within the Company's Consolidated Balance Sheets.