US Bank 2011 Annual Report Download - page 98

Aggregate amortization expense consisted of the following:
Year Ended December 31 (Dollars in Millions) 2011 2010 2009
Merchant processing contracts .................................................................................. $ 90 $102 $117
Core deposit benefits ............................................................................................ 81 102 103
Trust relationships ................................................................................................ 35 49 62
Other identified intangibles ....................................................................................... 93 114 105
Total ........................................................................................................... $299 $367 $387
The estimated amortization expense for the next five years is as follows:
(Dollars in Millions)
2012 ...................................................................................................................................... $275
2013 ...................................................................................................................................... 221
2014 ...................................................................................................................................... 168
2015 ...................................................................................................................................... 132
2016 ...................................................................................................................................... 102
The following table reflects the changes in the carrying value of goodwill for the years ended December 31, 2011 and 2010:
(Dollars in Millions)
Wholesale Banking and
Commercial Real Estate
Consumer and Small
Business Banking
Wealth Management and
Securities Services
Payment
Services
Treasury and
Corporate Support
Consolidated
Company
Balance at December 31, 2009 . . . $1,605 $3,526 $1,515 $2,365 $– $9,011
Goodwill acquired ............. – 9 5 – – 14
Disposal ....................... – – (57) – – (57)
Other (a) ........................ – – – (14) – (14)
Balance at December 31, 2010 . . . $1,605 $3,535 $1,463 $2,351 $– $8,954
Other (a) ........................ – (21) – (6) – (27)
Balance at December 31, 2011 . . . $1,605 $3,514 $1,463 $2,345 $– $8,927
(a) Other changes in goodwill include a reclassification from goodwill to covered loans related to an FDIC-assisted acquisition for Consumer and Small Business Banking and the effect of foreign
exchange translation for Payment Services.
NOTE 12 Short-Term Borrowings (a)
The following table is a summary of short-term borrowings for the last three years:
2011 2010 2009
(Dollars in Millions) Amount Rate Amount Rate Amount Rate
At year-end
Federal funds purchased ................................. $ 1,036 .11% $ 776 .17% $ 1,329 .11%
Securities sold under agreements to repurchase ......... 6,986 3.35 9,261 2.70 8,866 2.82
Commercial paper ........................................ 15,973 .12 15,885 .20 14,608 .17
Other short-term borrowings ............................. 6,473 .26 6,635 .59 6,509 .48
Total ................................................... $30,468 .89% $32,557 .99% $31,312 .98%
Average for the year
Federal funds purchased (b) .............................. $ 968 22.61% $ 2,180 10.09% $ 2,457 8.22%
Securities sold under agreements to repurchase ......... 7,483 3.22 9,211 2.75 8,915 2.84
Commercial paper ........................................ 15,204 .15 15,349 .20 10,924 .32
Other short-term borrowings ............................. 7,048 .77 6,979 .75 6,853 .89
Total (b) ................................................ $30,703 1.75% $33,719 1.65% $29,149 1.89%
Maximum month-end balance
Federal funds purchased ................................. $ 1,172 $ 6,034 $ 6,352
Securities sold under agreements to repurchase ......... 9,071 9,261 9,154
Commercial paper ........................................ 16,768 15,981 14,608
Other short-term borrowings ............................. 7,514 8,700 9,550
(a) Interest and rates are presented on a fully taxable-equivalent basis utilizing a tax rate of 35 percent.
(b) Average federal funds purchased and total short-term borrowings rates include amounts paid by the Company to certain corporate card customers for paying outstanding noninterest-bearing
corporate card balances within certain time frames per specific agreements. These activities reduce the Company’s short-term funding needs, and if they did not occur, the Company would
use other funding alternatives, including the use of federal funds purchased. The amount of this compensation expense paid by the Company and included in federal funds purchased and total
short-term borrowings rates for 2011, 2010 and 2009 was $218 million, $216 million and $199 million, respectively.
96 U.S. BANCORP