US Bank 2009 Annual Report Download - page 98

Note 15 Shareholders’ Equity
At December 31, 2009 and 2008, the Company had
authority to issue 4 billion shares of common stock and
50 million shares of preferred stock. The Company had
1.9 billion and 1.8 billion shares of common stock
outstanding at December 31, 2009 and 2008, respectively,
and had 132 million shares reserved for future issuances,
primarily under stock incentive plans and shares that may be
issued in connection with the Company’s convertible senior
debentures, at December 31, 2009.
The number of shares issued and outstanding and the carrying amount of each outstanding series of the Company’s preferred
stock was as follows:
December 31, (Dollars in Millions)
Shares Issued
and Outstanding
Carrying
Amount
Shares Issued
and Outstanding
Carrying
Amount
2009 2008
Series B . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40,000 $1,000 40,000 $1,000
Series D . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20,000 500 20,000 500
Series E . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . – – 6,599,000 6,431
Total preferred stock (a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 60,000 $1,500 6,659,000 $7,931
(a) The par value of all shares issued and outstanding at December 31, 2009 and 2008, was $1.00 a share.
On November 14, 2008, the Company issued
6.6 million shares of Series E Fixed Rate Cumulative
Perpetual Preferred Stock (the “Series E Preferred Stock”)
and a warrant to purchase 33 million shares of the
Company’s common stock, at a price of $30.29 per common
share, to the U.S. Department of the Treasury under the
Capital Purchase Program of the Emergency Economic
Stabilization Act of 2008 for proceeds of $6.6 billion. The
Company allocated $172 million of the proceeds to the
warrant, with the resulting discount on the Series E
Preferred Stock being accreted over five years and reported
as a reduction to income applicable to common equity over
that period. On June 17, 2009, the Company redeemed the
Series E Preferred Stock. The Company included in its
computation of earnings per diluted common share for the
year ended December 31, 2009 the impact of a deemed
dividend of $154 million, representing the unaccreted
preferred stock discount remaining on the redemption date.
On July 15, 2009, the Company repurchased the warrant
from the U.S. Department of the Treasury for $139 million.
On March 27, 2006, the Company issued depositary
shares representing an ownership interest in 40,000 shares of
Series B Non-Cumulative Perpetual Preferred Stock with a
liquidation preference of $25,000 per share (the “Series B
Preferred Stock”), and on March 17, 2008, the Company
issued depositary shares representing an ownership interest
in 20,000 shares of Series D Non-Cumulative Perpetual
Preferred Stock with a liquidation preference of $25,000 per
share (the “Series D Preferred Stock”). The Series B
Preferred Stock and Series D Preferred Stock have no stated
maturity and will not be subject to any sinking fund or other
obligation of the Company. Dividends, if declared, will
accrue and be payable quarterly, in arrears, at a rate per
annum equal to the greater of three-month LIBOR plus
.60 percent, or 3.50 percent on the Series B Preferred Stock,
and 7.875 percent per annum on the Series D Preferred
Stock. Both series are redeemable at the Company’s option,
subject to the prior approval of the Federal Reserve Board.
During 2009, 2008 and 2007, the Company
repurchased shares of its common stock under various
authorizations approved by its Board of Directors. As of
December 31, 2009, the Company had approximately
20 million shares that may yet be purchased under the
current Board of Directors approved authorization.
The following table summarizes the Company’s common stock repurchased in each of the last three years:
(Dollars and Shares in Millions) Shares Value
2009 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . – $ 4
2008 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 91
2007 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 58 2,011
96 U.S. BANCORP