Fifth Third Bank 2014 Annual Report Download - page 84

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
82 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, 2014 are shown in
Table 63. As of December 31, 2014, 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 refer to Note 20 of the Notes
to Consolidated Financial Statements.
TABLE 63: CONTRACTUAL OBLIGATIONS AND OTHER COMMITMENTS
A
s of December 31, 2014 ($ in millions)
Less than 1
year 1-3 years 3-5 years
Greater than
5 years Total
Contractually obligated payments due by period:
Deposits with a stated maturity of less than one year(a) $ 94,857 - - - 94,857
Time deposits(c) 2,507 2,578 1,510 260 6,855
Short-term borrowings(e) 1,700 - - - 1,700
Long-term debt(b) 702 6,499 3,649 4,117 14,967
Forward contracts related to held for sale mortgage loans(d) 999 - - - 999
Noncancelable operating lease obligations(f) 92 166 145 294 697
Partnership investment commitments(g) 191 118 24 31 364
Pension benefit payments(i) 22 40 34 80 176
Purchase obligations and capital expenditures(h) 51 26 28 - 105
Capital lease obligations 11 14 10 2 37
Total contractually obligated payments due by period $ 101,132 9,441 5,400 4,784 120,757
Other commitments by expiration period
Commitments to extend credit(j) $ 26,540 12,105 17,602 7,658 63,905
Letters of credit(k) 2,181 1,160 590 43 3,974
Total other commitments by expiration period $ 28,721 13,265 18,192 7,701 67,879
(a) Includes demand, interest checking, savings, money market and foreign office deposits. For additional information, refer to the Deposits discussion in the Balance Sheet Analysis section of MD&A.
(b) 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. Refer to 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, refer to the Deposits discussion in the Balance Sheet Analysis section of MD&A.
(d) Refer to 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, refer to Note 15 of the Notes to Consolidated Financial Statements.
(f) Includes rental commitments.
(g) Includes low-income housing and historic tax investments. For additional information, refer to Note 10 of the Notes to Consolidated Financial Statements.
(h) Represents agreements to purchase goods or services and includes commitments to various general contractors for work related to banking center construction.
(i) Refer to 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 include capital commitments for private equity investments and do not necessarily represent future cash flow requirements. For
additional information, refer to 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, refer to Note 17 of the Notes to Consolidated Financial
Statements.