US Bank 2013 Annual Report Download - page 72

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The Company’s annual assessment of potential goodwill
impairment was completed during the second quarter of
2013. Based on the results of this assessment, no goodwill
impairment was recognized. The Company continues to
monitor goodwill and other intangible assets for impairment
indicators throughout the year.
Income Taxes The Company estimates income tax
expense based on amounts expected to be owed to various
tax jurisdictions. Currently, the Company files tax returns in
approximately 279 federal, state and local domestic
jurisdictions and 12 foreign jurisdictions. The estimated
income tax expense is reported in the Consolidated
Statement of Income. Accrued taxes represent the net
estimated amount due to or to be received from taxing
jurisdictions either currently or in the future and are reported
in other assets or other liabilities on the Consolidated
Balance Sheet. In estimating accrued taxes, the Company
assesses the relative merits and risks of the appropriate tax
treatment considering statutory, judicial and regulatory
guidance in the context of the tax position. Because of the
complexity of tax laws and regulations, interpretation can be
difficult and subject to legal judgment given specific facts
and circumstances. It is possible that others, given the same
information, may at any point in time reach different
reasonable conclusions regarding the estimated amounts of
accrued taxes.
Changes in the estimate of accrued taxes occur
periodically due to changes in tax rates, interpretations of tax
laws, the status of examinations being conducted by various
taxing authorities, and newly enacted statutory, judicial and
regulatory guidance that impacts the relative merits and risks
of tax positions. These changes, when they occur, affect
accrued taxes and can be significant to the operating results
of the Company. Refer to Note 18 of the Notes to
Consolidated Financial Statements for additional information
regarding income taxes.
Controls and Procedures
Under the supervision and with the participation of the
Company’s management, including its principal executive
officer and principal financial officer, the Company has
evaluated the effectiveness of the design and operation of its
disclosure controls and procedures (as defined in
Rules 13a-15(e) and 15d-15(e) under the Securities
Exchange Act of 1934 (the “Exchange Act”)). Based upon
this evaluation, the principal executive officer and principal
financial officer have concluded that, as of the end of the
period covered by this report, the Company’s disclosure
controls and procedures were effective.
During the most recently completed fiscal quarter, there
was no change made in the Company’s internal controls
over financial reporting (as defined in Rules 13a-15(f) and
15d-15(f) under the Exchange Act) that has materially
affected, or is reasonably likely to materially affect, the
Company’s internal control over financial reporting.
The annual report of the Company’s management on
internal control over financial reporting is provided on
page 71. The attestation report of Ernst & Young LLP, the
Company’s independent accountants, regarding the
Company’s internal control over financial reporting is
provided on page 73.
70 U.S. BANCORP