US Bank 2011 Annual Report Download - page 102

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Shareholders’ equity is affected by transactions and valuations of asset and liability positions that require adjustments to
accumulated other comprehensive income (loss). The reconciliation of the transactions affecting accumulated other
comprehensive income (loss) included in shareholders’ equity for the years ended December 31, is as follows:
Transactions Balances
Net-of-Tax(Dollars in Millions) Pre-tax Tax-effect Net-of-tax
2011
Changes in unrealized gains and losses on securities available-for-sale ............... $ 920 $ (351) $ 569 $ 360
Other-than-temporary impairment not recognized in earnings on securities
available-for-sale ..................................................................... (25) 10 (15) –
Unrealized gain (loss) on derivative hedges ............................................. (343) 130 (213) (484)
Foreign currency translation ............................................................ (16) 6 (10) (49)
Realized loss on derivative hedges ..................................................... – – – (5)
Reclassification for realized (gains) losses .............................................. 363 (138) 225 –
Unrealized gains (losses) on retirement plans ........................................... (464) 177 (287) (1,022)
Total .................................................................................. $ 435 $ (166) $ 269 $(1,200)
2010
Changes in unrealized gains and losses on securities available-for-sale ............... $ 432 $ (163) $ 269 $ (213)
Other-than-temporary impairment not recognized in earnings on securities
available-for-sale ..................................................................... (66) 25 (41) –
Unrealized gain (loss) on derivative hedges ............................................. (145) 56 (89) (408)
Foreign currency translation ............................................................ 24 (10) 14 (39)
Realized loss on derivative hedges ..................................................... – – – (6)
Reclassification for realized (gains) losses .............................................. (28) 11 (17) –
Unrealized gains (losses) on retirement plans ........................................... (197) 76 (121) (803)
Total .................................................................................. $ 20 $ (5) $ 15 $(1,469)
2009
Changes in unrealized gains and losses on securities available-for-sale ............... $2,131 $ (810) $1,321 $ (393)
Other-than-temporary impairment not recognized in earnings on securities
available-for-sale ..................................................................... (402) 153 (249) –
Unrealized gain (loss) on derivative hedges ............................................. 516 (196) 320 (319)
Foreign currency translation ............................................................ 40 (15) 25 (53)
Realized loss on derivative hedges ..................................................... – – – (8)
Reclassification for realized (gains) losses .............................................. 492 (187) 305 –
Unrealized gains (losses) on retirement plans ........................................... 254 (97) 157 (711)
Total .................................................................................. $3,031 $(1,152) $1,879 $(1,484)
Regulatory Capital The measures used to assess capital by
bank regulatory agencies include two principal risk-based
ratios, Tier 1 and total risk-based capital. Tier 1 capital is
considered core capital and includes common shareholders’
equity plus qualifying preferred stock, trust preferred
securities and noncontrolling interests in consolidated
subsidiaries (subject to certain limitations), and is adjusted for
the aggregate impact of certain items included in other
comprehensive income (loss). Total risk-based capital includes
Tier 1 capital and other items such as subordinated debt and
the allowance for credit losses. Both measures are stated as a
percentage of risk-adjusted assets, which are measured based
on their perceived credit risk and include certain off-balance
sheet exposures, such as unfunded loan commitments, letters
of credit, and derivative contracts. The Company is also
subject to a leverage ratio requirement, a non risk-based asset
ratio, which is defined as Tier 1 capital as a percentage of
average assets adjusted for goodwill and other non-qualifying
intangibles and other assets.
For a summary of the regulatory capital requirements and
the actual ratios as of December 31, 2011 and 2010, for the
Company and its bank subsidiaries, see Table 22 included in
Management’s Discussion and Analysis, which is incorporated
by reference into these Notes to Consolidated Financial
Statements.
100 U.S. BANCORP