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Accounting Standards Update (Policies)
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6 Months Ended |
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Jun. 30, 2011
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| Accounting Standards Update [Abstract] | |
| ASC 310 |
ASU 2010-20 — Receivables (Topic 310): Disclosures about the Credit Quality of Financing
Receivables and the Allowance for Credit Losses. The ASU requires expanded disclosure about the
credit quality of the loan portfolio in the notes to financial statements, such as aging
information and credit quality indicators. Both new and existing disclosures must be disaggregated
by portfolio segment or class. The disaggregation of information is based on how the lender
develops its ACL and how it manages its credit exposure. The disclosures related to period-end
balances are effective for annual or interim reporting periods ending after December 15, 2010, and
were first included in the 2010 Form 10-K. The disclosures of activity that occurs during the
reporting period are effective for annual or interim reporting periods beginning after December 15,
2010 (See Note 3).
ASU 2011-02 — Receivables (Topic 310), A Creditor’s Determination of Whether a Restructuring Is a
Troubled Debt Restructuring. The ASU amends Subtopic 310-40 to clarify existing guidance related to
a creditor’s evaluation of whether a restructuring of debt is considered a TDR. The amendments add
additional clarity in determining whether a creditor has granted a concession and whether a debtor
is experiencing financial difficulties. The updated guidance and related disclosure requirements
are effective for financial statements issued for the first interim or annual period beginning on
or after June 15, 2011, and should be applied retroactively to the beginning of the annual period
of adoption. As a result of applying these amendments, Huntington may identify receivables that
are considered newly impaired. For the purposes of measuring impairment on those receivables,
Huntington would apply the amendments prospectively for the first interim or annual period
beginning on or after June 15, 2011. Management is currently evaluating the impact of the
guidance on Huntington’s Condensed Consolidated Financial Statements.
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| ASC Topic 320 |
Huntington evaluates its available-for-sale securities portfolio on a quarterly basis for
OTTI. Huntington assesses whether OTTI has occurred when the fair value of a debt security is less
than the amortized cost basis at period-end. Under these circumstances, OTTI is considered to have
occurred; (1) if Huntington intends to sell the security; (2) if it is more likely than not
Huntington will be required to sell the security before recovery of its amortized cost basis; or
(3) the present value of the expected cash flows is not sufficient to recover the entire amortized
cost basis.
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| ASC 825, Fair Value Financial Instrument |
Huntington follows the fair value accounting guidance under ASC 820 and ASC 825.
Fair value is defined as the exchange price that would be received for an asset or paid to
transfer a liability (an exit price) in the principal or most advantageous market for the asset or
liability in an orderly transaction between market participants on the measurement date. A
three-level valuation hierarchy was established for disclosure of fair value measurements. The
valuation hierarchy is based upon the transparency of inputs to the valuation of an asset or
liability as of the measurement date. The three levels are defined as follows:
Level 1 — inputs to the valuation methodology are quoted prices (unadjusted) for identical assets
or liabilities in active markets.
Level 2 — inputs to the valuation methodology include quoted prices for similar assets and
liabilities in active markets, and inputs that are observable for the asset or liability, either
directly or indirectly, for substantially the full term of the financial instrument.
Level 3 — inputs to the valuation methodology are unobservable and significant to the fair value
measurement.
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| ASC 740 |
Huntington accounts for uncertainties in income taxes in accordance with ASC 740, Income
Taxes. At June 30, 2011, Huntington had gross unrecognized tax benefits of $12.5 million in income
tax liability related to tax positions. Total interest accrued on the unrecognized tax benefits
amounted to $2.1 million as of June 30, 2011. Due to the complexity of some of these
uncertainties, the ultimate resolution may result in a payment that is materially different from
the current estimate of the tax liabilities. However, any ultimate settlement is not expected to be
material to the Unaudited Condensed Consolidated Financial Statements as a whole. Huntington
recognizes interest and penalties on income tax assessments or income tax refunds in the financial
statements as a component of its provision for income taxes. Huntington does not anticipate the
total amount of unrecognized tax benefits to significantly change within the next 12 months.
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| ASC 820 |
Accounting Standards Update (ASU) 2010-6 — Fair Value Measurements and Disclosures (Topic 820):
Improving Disclosures about Fair Value Measurements. The ASU amends Subtopic 820-10 with new
disclosure requirements and clarification of existing disclosure requirements. New disclosures
include the amount of significant transfers in and out of levels 1 and 2 fair value measurements
and the reasons for the transfers. In addition, the reconciliation for level 3 activity is
required on a gross rather than net basis. The ASU provides additional guidance related to the
level of disaggregation in determining classes of assets and liabilities and disclosures about
inputs and valuation techniques. The amendments are effective for annual or interim reporting
periods beginning after December 15, 2009, except for the requirement to provide the reconciliation
for level 3 activity on a gross basis which is effective for annual or interim reporting periods
beginning after December 15, 2010 (See Note 13).
ASU 2011-04 — Fair Value Measurement (Topic 820), Amendments to Achieve Common Fair Value
Measurement and Disclosure Requirements in U.S. GAAP and IFRSs. The ASU amends Topic 820 to add
both additional clarifications to existing fair value measurement and disclosure requirements and
changes to existing principles and disclosure guidance. Clarifications were made to the relevancy
of the highest and best use valuation concept, measurement of an instrument classified in an
entity’s shareholder’s equity and disclosure of quantitative information about the unobservable
inputs for level 3 fair value measurements. Changes to existing principles and disclosures
included measurement of financial instruments managed within a portfolio, the application of
premiums and discounts in fair value measurement, and additional disclosures related to fair value
measurements. The updated guidance and requirements are effective for financial statements issued
for the first interim or annual period beginning after December 15, 2011, and should be applied
prospectively. Early adoption is permitted. Management does not believe the principle amendments
will have a material impact on Huntington’s Condensed Consolidated Financial Statements.
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| ASC 860 |
ASU 2011-03 — Transfers and Servicing (Topic 860), Reconsideration of Effective Control for
Repurchase Agreements. The ASU amends Topic 860 to remove from the assessment of effective control
(1) the criterion requiring the transferor to have the ability to repurchase or redeem the
financial assets on substantially the agreed terms, even in the event of default by the transferee,
and (2) the collateral maintenance implementation guidance related to that criterion. The updated
guidance and requirements are effective for financial statements issued for the first interim or
annual period beginning after December 15, 2011, and should be applied prospectively to
transactions or modifications of existing transactions that occur on or after the effective date.
Early adoption is not permitted. Management does not believe the amendment will have a material
impact on Huntington’s Condensed Consolidated Financial Statements.
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| ASC 220 |
ASU 2011-05 — Other Comprehensive Income (Topic 220), Presentation of Comprehensive Income. The
ASU amends Topic 220 to require an entity the option to present the total of comprehensive income,
the components of net income, and the components of other comprehensive income either in a single
continuous statement of comprehensive income or in two separate but consecutive statements. An
entity is also required to present on the face of the financial statements reclassification
adjustments for items that are reclassified from other comprehensive income to net income in the
statement(s) where the components of net income and the components of other comprehensive income
are presented. The amendments do not change items that must be reported in other comprehensive
income or when an item of other comprehensive income must be reclassified to net income, only the
format for presentation. The updated guidance and requirements are effective for financial
statements issued for the fiscal years, and the interim periods within those years, beginning after
December 15, 2011. The amendments should be applied retrospectively. Early adoption is
permitted.
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