US Bank 2013 Annual Report Download - page 128

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The following tables provide information on the Company’s netting adjustments, and items not offset on the Consolidated
Balance Sheet but available for offset in the event of default:
Gross
Gross Amounts
Offset on the
Net Amounts
Presented on the
Gross Amounts Not Offset on the
Consolidated Balance Sheet
(Dollars in Millions)
Recognized
Assets
Consolidated
Balance Sheet (a)
Consolidated
Balance Sheet
Financial
Instruments (b)
Collateral
Received (c) Net Amount
December 31, 2013
Derivative assets (d) ................ $1,349 $(599) $ 750 $ (21) $ – $729
Reverse repurchase agreements ... 87 – 87 (59) (28) –
Securities borrowed ................. 723 – 723 – (698) 25
Total ........................... $2,159 $(599) $1,560 $ (80) $(726) $754
December 31, 2012
Derivative assets (d) ................ $1,546 $(418) $1,128 $(148) $ – $980
Reverse repurchase agreements ... 363 – 363 (44) (319) –
Securities borrowed ................. 368 – 368 – (356) 12
Total ......................... $2,277 $(418) $1,859 $(192) $(675) $992
(a) Includes $124 million and $79 million of cash collateral related payables that were netted against derivative assets at December 31, 2013 and 2012, respectively.
(b) For derivative assets this includes any derivative liability fair values that could be offset in the event of counterparty default; for reverse repurchase agreements this includes any
repurchase agreement payables that could be offset in the event of counterparty default; for securities borrowed this includes any securities loaned payables that could be offset in the
event of counterparty default.
(c) Includes the fair value of securities received by the Company from the counterparty. These securities are not included on the Consolidated Balance Sheet unless the counterparty
defaults.
(d) Excludes $55 million and $260 million of derivative assets centrally cleared or otherwise not subject to netting arrangements at December 31, 2013 and 2012, respectively.
Gross
Gross Amounts
Offset on the
Net Amounts
Presented on the
Gross Amounts Not Offset on the
Consolidated Balance Sheet
(Dollars in Millions)
Recognized
Liabilities
Consolidated
Balance Sheet (a)
Consolidated
Balance Sheet
Financial
Instruments (b)
Collateral
Pledged (c) Net Amount
December 31, 2013
Derivative liabilities (d) ............. $1,598 $(1,192) $ 406 $ (21) $ – $385
Repurchase agreements........... 2,059 – 2,059 (59) (2,000) –
Securities loaned .................. ––––––
Total .......................... $3,657 $(1,192) $2,465 $ (80) $(2,000) $385
December 31, 2012
Derivative liabilities (d) ............. $2,178 $(1,549) $ 629 $(148) $ – $481
Repurchase agreements........... 3,389 – 3,389 (44) (3,345) –
Securities loaned .................. ––––––
Total ........................ $5,567 $(1,549) $4,018 $(192) $(3,345) $481
(a) Includes $717 million and $1.2 billion of cash collateral related receivables that were netted against derivative liabilities at December 31, 2013 and 2012, respectively.
(b) For derivative liabilities this includes any derivative asset fair values that could be offset in the event of counterparty default; for repurchase agreements this includes any reverse
repurchase agreement receivables that could be offset in the event of counterparty default; for securities loaned this includes any securities borrowed receivables that could be offset in
the event of counterparty default.
(c) Includes the fair value of securities pledged by the Company to the counterparty. These securities are included on the Consolidated Balance Sheet unless the Company defaults.
(d) Excludes $119 million and $5 million of derivative liabilities centrally cleared or otherwise not subject to netting arrangements at December 31, 2013 and 2012, respectively.
NOTE 21 Fair Values of Assets and Liabilities
The Company uses fair value measurements for the initial
recording of certain assets and liabilities, periodic
remeasurement of certain assets and liabilities, and
disclosures. Derivatives, trading and available-for-sale
investment securities, substantially all MLHFS and MSRs are
recorded at fair value on a recurring basis. Additionally, from
time to time, the Company may be required to record at fair
value other assets on a nonrecurring basis, such as loans
held for sale, loans held for investment and certain other
assets. These nonrecurring fair value adjustments typically
involve application of lower-of-cost-or-fair value accounting
or impairment write-downs of individual assets.
Fair value is defined as the exchange price that would
be received for an asset or paid to transfer a liability (an exit
price) in the principal or most advantageous market for the
asset or liability in an orderly transaction between market
participants on the measurement date. A fair value
measurement reflects all of the assumptions that market
participants would use in pricing the asset or liability,
including assumptions about the risk inherent in a particular
valuation technique, the effect of a restriction on the sale or
use of an asset and the risk of nonperformance.
The Company groups its assets and liabilities
measured at fair value into a three-level hierarchy for
126 U.S. BANCORP