US Bank 2005 Annual Report Download - page 85

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Maturities of long-term debt outstanding at December 31, 2005, were:
Parent
(Dollars in Millions) Company Consolidated
2006 ********************************************************************************************************** $ 626 $ 7,690
2007 ********************************************************************************************************** 1,378 8,226
2008 ********************************************************************************************************** 504 4,648
2009 ********************************************************************************************************** 5 997
2010 ********************************************************************************************************** 496 2,502
Thereafter ****************************************************************************************************** 7,845 13,006
Total*********************************************************************************************************** $10,854 $37,069
JUNIOR SUBORDINATED DEBENTURES
The Company sponsors and wholly owns 100% of the Debentures are redeemable in 2006, 2007 and 2010 in the
common equity of eleven trusts that were formed for the amounts of $1.9 billion, $310 million and $979 million,
purpose of issuing Company-obligated mandatorily respectively.
redeemable preferred securities (‘‘Trust Preferred Securities’’) In March 2004, as a result of adopting the provisions
to third-party investors and investing the proceeds from the of Interpretation No. 46 (revised December 2003),
sale of the Trust Preferred Securities solely in junior ‘‘Consolidation of Variable Interest Entities’’, an
subordinated debt securities of the Company (the interpretation of Accounting Research Bulletin No. 51,
‘‘Debentures’’). The Debentures held by the trusts, which ‘‘Consolidated Financial Statements’’, the Company was
total $3.2 billion, are the sole assets of each trust. The required to de-consolidate these subsidiary trusts from its
Company’s obligations under the Debentures and related financial statements. The de-consolidation of the net assets
documents, taken together, constitute a full and and results of operations of the trusts had an insignificant
unconditional guarantee by the Company of the obligations impact on the Company’s financial statements and liquidity
of the Trusts. The guarantee covers the distributions and position since the Company continues to be obligated to
payments on liquidation or redemption of the Trust repay the Debentures held by the trusts and guarantees
Preferred Securities, but only to the extent of funds held by repayment of the Trust Preferred Securities issued by the
the Trusts. The Company used the proceeds from the sales trusts. The consolidated debt obligation related to the trusts
of the Debentures for general corporate purposes. increased $79 million upon de-consolidation with the
The Company has the right to redeem retail Debentures increase representing the Company’s common equity
in whole or in part, on or after specific dates, at a ownership in the trusts. The Trust Preferred Securities held
redemption price specified in the indentures plus any by the trusts qualify as Tier 1 capital for the Company
accrued but unpaid interest to the redemption date. The under the Federal Reserve Board guidelines. The banking
Company has the right to redeem institutional Debentures regulatory agencies have issued guidance that would
in whole, (but not in part), on or after specific dates, at a continue the current regulatory capital treatment for
redemption price specified in the indentures plus any Trust Preferred Securities.
accrued but unpaid interest to the redemption date. The
U.S. BANCORP 83
Note 15