US Bank 2001 Annual Report Download - page 49

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January 1, 2001, the Company adopted SFAS 133. Transition principles'' in the income statement. The amortization
adjustments related to adoption resulted in an after-tax loss provisions of SFAS 142 apply to goodwill and intangible
of approximately $4.1 million recorded in net income and an assets acquired after June 30, 2001. With respect to
after-tax increase of $5.2 million to other comprehensive goodwill and intangible assets acquired prior to July 1,
income. The transition adjustments related to adoption were 2001, the amortization provisions of SFAS 142 are eÅective
not material to the Company's financial statements, and as upon adoption of SFAS 142.
such, were not separately reported in the consolidated The Company will apply the amortization provisions of
statement of income. SFAS 142 during the first quarter of 2002. Management
anticipates that applying the provisions of SFAS 141 to recent
Accounting for Business Combinations and Goodwill acquisitions and the provisions of SFAS 142 to purchase
and Other Intangible Assets In June 2001, the Financial acquisitions completed prior to July 1, 2001, will increase
Accounting Standards Board issued Statement of Financial after-tax income for the year ending December 31, 2002, by
Accounting Standards No. 141 (""SFAS 141''), ""Business approximately $200 to $210 million, or $.10 per diluted share.
Combinations'' and Statement of Financial Accounting This considers the application of SFAS 142's definition of a
Standard No. 142 (""SFAS 142''), ""Goodwill and Other business and the impact of reclassifying certain assets from
Intangible Assets''. SFAS 141 mandates the purchase goodwill to intangibles and changes in estimated useful lives of
method of accounting be used for all business combinations certain intangible assets. The Company has not yet fully
initiated after June 30, 2001, and establishes speciÑc criteria determined the impact on earnings of impairments related to
for the recognition of intangible assets separately from goodwill and indefinite lived intangible assets under the new
goodwill. SFAS 142 addresses the accounting for goodwill guidelines required by SFAS 142. Any material impairment
and intangible assets subsequent to their acquisition. The charge resulting from these transitional accounting rules will
Company is required to adopt SFAS 142 on January 1, be reflected as a ""cumulative effect of a change in accounting
2002. The most signiÑcant changes made by SFAS 142 are principles'' in the first quarter of 2002. Because banking
that goodwill and indeÑnite lived intangible assets will no regulations exclude 100 percent of goodwill from the
longer be amortized and will be tested for impairment at determination of capital adequacy, the impact of any
least annually, thereafter. Any impairment charges from the impairment on the Company's capital adequacy will not be
initial impairment test at the time of adoption would be significant.
recognized as a ""cumulative eÅect of change in accounting
U.S. Bancorp 47