Fifth Third Bank 2004 Annual Report Download - page 35

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
Fifth Third Bancorp 33
The Bancorp maintains disclosure controls and procedures that
are designed to ensure that information required to be disclosed in
the Bancorp’s Securities Exchange Act of 1934 (“Exchange Act”)
reports is recorded, processed, summarized and reported within
the time periods specifi ed in the Securities and Exchange Commis-
sion’s rules and forms, and that such information is accumulated
and communicated to the Bancorp’s management, including its
Chief Executive Offi cer and Chief Financial Offi cer, as appropri-
ate, to allow timely decisions regarding required disclosure based
closely on the defi nition of “disclosure controls and procedures”
in Exchange Act Rules 13a-15(e) and 15d-15(e). In designing and
evaluating the disclosure controls and procedures, management
recognized that any controls and procedures, no matter how well
designed and operated, can provide only reasonable assurance of
achieving the desired control objectives, and management necessar-
ily was required to apply its judgment in evaluating the cost-benefi t
relationship of possible controls and procedures.
As of the end of the period covered by this report, the Bancorp
carried out an evaluation, under the supervision and with the
participation of the Bancorp’s management, including the Bancorp’s
Chief Executive Offi cer and Chief Financial Offi cer, of the effec-
tiveness of the design and operation of the Bancorp’s disclosure
controls and procedures. Based on the foregoing, the Bancorp’s
Chief Executive Offi cer and Chief Financial Offi cer concluded
that the Bancorp’s disclosure controls and procedures were effec-
tive, in all material respects, to ensure that information required to
be disclosed in the reports the Bancorp fi les and submits under the
Exchange Act is recorded, processed, summarized and reported as
and when required.
The Bancorp’s management also conducted an evaluation of
internal control over fi nancial reporting to determine whether any
changes occurred during the year covered by this report that have
materially affected, or are reasonably likely to materially affect, the
Bancorp’s internal control over fi nancial reporting. Based on this
evaluation, there has been no such change during the year covered
by this report.
CONTROLS AND PROCEDURES
TABLE 32: CONTRACTUAL OBLIGATIONS AND OTHER COMMITMENTS
As of December 31, 2004 ($ in millions)
Less than
1 year 1-3 years 4-5 years
Greater than
5 years Total
Contractually obligated payments due by period:
Total deposits (a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $54,504 195 21 3,506 58,226
Long-term debt (b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,306 4,587 3,246 2,844 13,983
Interest on fi xed-rate long-term debt (c) . . . . . . . . . . . . . . . . . . . . . . . . . . 169 240 178 717 1,304
Short-term borrowings (d) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10,026 — — — 10,026
Noncancelable leases (e) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 49 87 69 186 391
Purchase obligations (f) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29 22 8 — 59
Total contractually obligated payments due by period . . . . . . . . . . . . . . . . . $68,083 5,131 3,522 7,253 83,989
Other commitments by expiration period:
Letters of credit (g) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,817 2,360 1,452 294 5,923
Commitments to extend credit (g) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18,698 12,614 — — 31,312
Total other commitments by expiration period . . . . . . . . . . . . . . . . . . . . . . $20,515 14,974 1,452 294 37,235
(a) Includes demand, interest checking, savings, money market, other time, certifi cates-$100,000 and over and foreign offi ce deposits. For additional information see the Deposits
discussion in the Balance Sheet Analysis section of Management’s Discussion and Analysis.
(b) See Note 11 of the Notes to the Consolidated Financial Statements for additional information on these debt instruments.
(c) Represents expected interest expense to be incurred on fi xed-rate long-term debt. See Note 11 of the Notes to the Consolidated Financial Statements for additional
information.
(d) Includes federal funds purchased, bank notes, securities sold under repurchase agreements and other debt instruments as discussed in Note 10 of the Notes to the Consolidated
Financial Statements.
(e) See Note 4 of the Notes to the Consolidated Financial Statements for additional information on these noncancelable leases.
(f) Represents agreements to purchase goods or services.
(g) See Note 12 of the Notes to the Consolidated Financial Statements for additional information on these commitments.