Fifth Third Bank 2011 Annual Report Download - page 76

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
74 Fifth Third Bancorp
CONTRACTUAL OBLIGATIONS AND OTHER COMMITMENTS
The Bancorp has certain obligations and commitments to make
future payments under contracts. The aggregate contractual
obligations and commitments at December 31, 2011 are shown in
Table 58. As of December 31, 2011, the Bancorp has unrecognized
tax benefits that, if recognized, would impact the effective tax rate
in future periods. Due to the uncertainty of the amounts to be
ultimately paid as well as the timing of such payments, all uncertain
tax liabilities that have not been paid have been excluded from the
Contractual Obligations and Other Commitments table. For further
detail on the impact of income taxes see Note 20 of the Notes to
Consolidated Financial Statements.
TABLE 58: CONTRACTUAL OBLIGATIONS AND OTHER COMMITMENTS
A
s of December 31, 2011 ($ in millions)
Less than 1
year 1-3 years 3-5 years
Greater than
5 years Total
Contractually obligated payments due by period:
Deposits without a stated maturity(a) $78,033 - - - 78,033
Long-term debt(b) 81,692 2,995 4,987 9,682
Time deposits(c) 3,821 350 74 3,432 7,677
Forward contracts to sell mortgage loans(d) 5,705 - - - 5,705
Short-term borrowings(e) 3,585 - - - 3,585
Noncancelable lease obligations(f) 92 170 149 440 851
Partnership investment commitments(g) 164 65 10 30 269
Purchase obligations(h) 66 50 40 - 156
Pension obligations(i) 20 33 31 66 150
Capital lease obligations 12 9 4 1 26
Total contractually obligated payments due by period $91,506 2,369 3,303 8,956 106,134
Other commitments by expiration period
Commitments to extend credit(j) $28,980 7,150 11,393 362 47,885
Letters of credit(k) 1,940 2,409 256 139 4,744
Total other commitments by expiration period $30,920 9,559 11,649 501 52,629
(a) Includes demand, interest checking, savings, money market and foreign office deposits. For additional information, see the Deposits discussion in the Balance Sheet Analysis section of MD&A.
(b) In the banking industry, interest-bearing obligations are principally used to fund interest-earning assets. As such, interest charges on contractual obligations were excluded from reported amounts, as the
potential cash outflows would have corresponding cash inflows from interest-earning assets. See Note 16 of the Notes to Consolidated Financial Statements for additional information on these debt
instruments.
(c) Includes other time and certificates $100,000 and over. For additional information, see the Deposits discussion in the Balance Sheet Analysis section of MD&A.
(d) See Note 12 of the Notes to Consolidated Financial Statements for additional information on forward contracts to sell residential mortgage loans.
(e) Includes federal funds purchased and borrowings with an original maturity of less than one year. For additional information, see Note 15 of the Notes to Consolidated Financial Statements.
(f) Includes rental commitments.
(g) Includes low-income housing, historic tax investments and market tax credits.
(h) Represents agreements to purchase goods or services and includes commitments to various general contractors for work related to banking center construction.
(i) See Note 21 of the Notes to Consolidated Financial Statements for additional information on pension obligations.
(j) Commitments to extend credit are agreements to lend, typically having fixed expiration dates or other termination clauses that may require payment of a fee. Many of the commitments to extend credit
may expire without being drawn upon. The total commitment amounts do not necessarily represent future cash flow requirements. For additional information, see Note 17 of the Notes to Consolidated
Financial Statements.
(k) Letters of credit are conditional commitments issued to guarantee the performance of a customer to a third party. For additional information, see Note 17 of the Notes to Consolidated Financial
Statements.