US Bank 2015 Annual Report Download - page 115

NOTE 13 LONG-TERM DEBT
Long-term debt (debt with original maturities of more than one year) at December 31 consisted of the following:
(Dollars in Millions) Rate Type Rate(a) Maturity Date 2015 2014
U.S. Bancorp (Parent Company)
Subordinated notes ................................... Fixed 2.950% 2022 $ 1,300 $ 1,300
Fixed 3.600% 2024 1,000 1,000
Fixed 7.500% 2026 199 199
Medium-term notes ................................... Fixed 1.650% - 4.125% 2016 - 2024 7,500 9,250
Floating .720% - .852% 2018 - 2019 750 750
Junior subordinated debentures ......................... Fixed 3.442% 2016 500 500
Capitalized lease obligations, mortgage indebtedness and
other(b) ........................................... 204 190
Subtotal .......................................... 11,453 13,189
Subsidiaries
Subordinated notes ................................... Fixed 4.800% 2015 – 500
Fixed 3.778% 2020 – 500
Federal Home Loan Bank advances ..................... Fixed 1.250% - 8.250% 2017 - 2026 11 11
Floating .335% - .847% 2016 - 2025 9,081 7,334
Bank notes ......................................... Fixed 1.100% - 2.800% 2017 - 2025 5,850 4,050
Floating .016% - .803% 2016 - 2055 4,928 6,069
Capitalized lease obligations, mortgage indebtedness and
other(b) ........................................... 755 607
Subtotal .......................................... 20,625 19,071
Total ............................................. $32,078 $32,260
(a) Weighted-average interest rates of medium-term notes, Federal Home Loan Bank advances and bank notes were 2.43 percent, .57 percent and 1.20 percent, respectively.
(b) Other includes consolidated community development and tax-advantaged investment VIEs, debt issuance fees, and unrealized gains and losses and deferred amounts relating to derivative
instruments.
The Company has arrangements with the Federal Home
Loan Bank and Federal Reserve Bank whereby the Company
could have borrowed an additional $74.9 billion and $76.0
billion at December 31, 2015 and 2014, respectively, based
on collateral available.
Maturities of long-term debt outstanding at December 31,
2015, were:
(Dollars in Millions)
Parent
Company Consolidated
2016 ............................. $ 1,926 $ 6,359
2017 ............................. 1,249 7,144
2018 ............................. 1,498 5,786
2019 ............................. 1,511 3,505
2020 ............................. – 47
Thereafter ......................... 5,269 9,237
Total ............................. $11,453 $32,078
NOTE 14 JUNIOR SUBORDINATED DEBENTURES
As of December 31, 2015, the Company sponsored, and
wholly owned 100 percent of the common equity of, USB
Capital IX, a wholly-owned unconsolidated trust, formed for
the purpose of issuing redeemable Income Trust Securities
(“ITS”) to third party investors, originally investing the proceeds
in junior subordinated debt securities (“Debentures”) issued by
the Company and entering into stock purchase contracts to
purchase preferred stock in the future. During 2010, the
Company exchanged depositary shares representing an
ownership interest in its Series A Non-Cumulative Perpetual
Preferred Stock (“Series A Preferred Stock”) to acquire a
portion of the ITS issued by USB Capital IX and retire a portion
of the Debentures and cancel a pro-rata portion of stock
purchase contracts. During 2011, USB Capital IX sold the
remaining Debentures, originally issued by the Company to the
trust, to investors to generate cash proceeds to purchase the
Company’s Series A Preferred Stock pursuant to the stock
purchase contracts. As part of this sale, a consolidated
subsidiary of the Company purchased $176 million of the
Debentures, which effectively retired the debt. The Company
classifies the remaining $500 million of Debentures at
December 31, 2015 and 2014, as long-term debt. As of
December 31, 2015 and 2014, $676 million of the Company’s
Series A Preferred Stock was the sole asset of USB Capital IX.
The Company’s obligations under the transaction documents,
taken together, have the effect of providing a full and
unconditional guarantee by the Company, on a junior
subordinated basis, of the payment obligations of the trust.
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