SunTrust 2015 Annual Report Download - page 158

Notes to Consolidated Financial Statements, continued
130
Netting of Derivative Instruments
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 agreements
with derivative counterparties. Under the terms of the master
netting agreements, 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 following tables present total gross derivative
instrument assets and liabilities at December 31, 2015 and 2014,
which are adjusted to reflect the effects of legally enforceable
master netting agreements and cash collateral received or paid
on the net amount reported in the Consolidated Balance Sheets.
Also included in the tables are 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 instrument assets and liabilities 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, 2015
Derivative instrument assets:
Derivatives subject to master netting arrangement or similar
arrangement $4,184 $3,156 $1,028 $66 $962
Derivatives not subject to master netting arrangement or similar
arrangement 21 — 21 — 21
Exchange traded derivatives 260 157 103 — 103
Total derivative instrument assets $4,465 $3,313 $1,152 1$66 $1,086
Derivative instrument liabilities:
Derivatives subject to master netting arrangement or similar
arrangement $4,162 $3,807 $355 $19 $336
Derivatives not subject to master netting arrangement or similar
arrangement 105 — 105 — 105
Exchange traded derivatives 161 157 4 — 4
Total derivative instrument liabilities $4,428 $3,964 $464 2$19 $445
December 31, 2014
Derivative instrument 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 instrument assets $5,839 $4,532 $1,307 1$63 $1,244
Derivative instrument 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 instrument liabilities $5,577 $5,115 $462 2$12 $450
1 At December 31, 2015, $1.2 billion, net of $397 million offsetting cash collateral, is recognized in trading assets and derivative instruments within the Company's Consolidated
Balance Sheets. At December 31, 2014, $1.3 billion, net of $449 million offsetting cash collateral, is recognized in trading assets and derivative instruments within the Company's
Consolidated Balance Sheets.
2 At December 31, 2015, $464 million, net of $1.0 billion offsetting cash collateral, is recognized in trading liabilities and derivative instruments within the Company's Consolidated
Balance Sheets. At December 31, 2014, $462 million, net of $1.0 billion offsetting cash collateral, is recognized in trading liabilities and derivative instruments within the
Company's Consolidated Balance Sheets.