US Bank 2015 Annual Report Download - page 120

The following table provides the components of the Company’s regulatory capital at December 31:
(Dollars in Millions) 2015 2014
Basel III transitional standardized approach:
Common shareholders’ equity ..................................................................... $ 40,630 $ 38,723
Less intangible assets
Goodwill (net of deferred tax liability) .............................................................. (8,295) (8,403)
Other disallowed intangible assets ................................................................ (335) (165)
Other(a) ........................................................................................ 612 701
Total common equity tier 1 capital .............................................................. 32,612 30,856
Qualifying preferred stock ......................................................................... 5,501 4,756
Noncontrolling interests eligible for tier 1 capital ....................................................... 318 408
Total tier 1 capital ........................................................................... 38,431 36,020
Eligible portion of allowance for credit losses ......................................................... 4,255 3,957
Subordinated debt and noncontrolling interests eligible for tier 2 capital .................................... 2,616 3,215
Other ......................................................................................... 11 16
Total tier 2 capital ........................................................................... 6,882 7,188
Total risk-based capital ....................................................................... $ 45,313 $ 43,208
Risk-weighted assets ............................................................................ $341,360 $317,398
Basel III transitional advanced approaches:
Common shareholders’ equity ..................................................................... $ 40,630 $ 38,723
Less intangible assets
Goodwill (net of deferred tax liability) .............................................................. (8,295) (8,403)
Other disallowed intangible assets ................................................................ (335) (165)
Other(a) ........................................................................................ 612 701
Total common equity tier 1 capital .............................................................. 32,612 30,856
Qualifying preferred stock ......................................................................... 5,501 4,756
Noncontrolling interests eligible for tier 1 capital ....................................................... 318 408
Total tier 1 capital ........................................................................... 38,431 36,020
Eligible portion of allowance for credit losses ......................................................... 1,204 1,224
Subordinated debt and noncontrolling interests eligible for tier 2 capital .................................... 2,616 3,215
Other ......................................................................................... 11 16
Total tier 2 capital ........................................................................... 3,831 4,455
Total risk-based capital ....................................................................... $ 42,262 $ 40,475
Risk-weighted assets ............................................................................ $261,668 $248,596
(a) Includes the impact of items included in other comprehensive income (loss), such as unrealized gains (losses) on available-for-sale securities, accumulated net gains on cash flow hedges,
pension liability adjustments, etc.
Noncontrolling interests principally represent third party
investors’ interests in consolidated entities, including preferred
stock of consolidated subsidiaries. During 2006, the
Company’s banking subsidiary formed USB Realty Corp., a
real estate investment trust, for the purpose of issuing 5,000
shares of Fixed-to-Floating Rate Exchangeable Non-
cumulative Perpetual Series A Preferred Stock with a
liquidation preference of $100,000 per share (“Series A
Preferred Securities”) to third party investors. Dividends on the
Series A Preferred Securities, if declared, will accrue and be
payable quarterly, in arrears, at a rate per annum equal to
three-month LIBOR plus 1.147 percent. If USB Realty Corp.
has not declared a dividend on the Series A Preferred
Securities before the dividend payment date for any dividend
period, such dividend shall not be cumulative and shall cease
to accrue and be payable, and USB Realty Corp. will have no
obligation to pay dividends accrued for such dividend period,
whether or not dividends on the Series A Preferred Securities
are declared for any future dividend period.
The Series A Preferred Securities will be redeemable, in
whole or in part, at the option of USB Realty Corp. on each
fifth anniversary after the dividend payment date occurring in
January 2012. Any redemption will be subject to the approval
of the Office of the Comptroller of the Currency.
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