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Notes to Consolidated Financial Statements
Private Client, Trust and Asset Management provides
Significant Accounting Policies
mutual fund processing services, trust, private banking,
U.S. Bancorp and its subsidiaries (the ‘‘Company’’) financial advisory and investment management services
comprise the organization created by the acquisition by to affluent individuals, businesses, institutions and
Firstar Corporation (‘‘Firstar’’) of the former U.S. Bancorp mutual funds.
(‘‘USBM’’). The new Company retained the U.S. Bancorp
Payment Services specializes in credit and debit card
name. The Company is a multi-state financial services
products, corporate and purchasing card services and ATM
holding company headquartered in Minneapolis, Minnesota.
and merchant processing. Customized products and services,
The Company provides a full range of financial services
coupled with cutting-edge technology are provided to
including lending and depository services through banking
consumer and business customers, government clients,
offices principally in 24 states. The Company also engages
correspondent financial institutions, merchants and
in credit card, merchant, and ATM processing, mortgage
co-brand partners.
banking, insurance, trust and investment management,
brokerage, leasing and investment banking activities Capital Markets provides financial advisory services and
principally in domestic markets. securities, mutual funds, annuities and insurance products
to consumers and businesses, and engages in equity and
Basis of Presentation The consolidated financial
fixed income trading activities and investment banking
statements include the accounts of the Company and its
and underwriting services for corporate and public
subsidiaries. The consolidation eliminates all significant
sector customers.
intercompany accounts and transactions. Certain items in
prior periods have been reclassified to conform to the Treasury and Corporate Support includes the Company’s
current presentation. investment and residential mortgage portfolios, funding,
capital management and asset securitization activities,
Uses of Estimates The preparation of financial statements
interest rate risk management, the net effect of transfer
in conformity with generally accepted accounting principles
pricing related to loan and deposit balances, and the change
requires management to make estimates and assumptions
in residual allocations associated with the provision for loan
that affect the amounts reported in the financial statements
losses. It also includes business activities managed on a
and accompanying notes. Actual experience could differ
corporate basis, including income and expense of enterprise-
from those estimates.
wide operations and administrative support functions.
BUSINESS SEGMENTS
Segment Results Accounting policies for the lines of
business are the same as those used in preparation of the
Within the Company, financial performance is measured by
consolidated financial statements with respect to activities
major lines of business based on the products and services
specifically attributable to each business line. However, the
provided to customers through its distribution channels.
preparation of business line results requires management to
The Company has six reportable operating segments:
establish methodologies to allocate funding costs and
Wholesale Banking offers lending, depository, treasury benefits, expenses and other financial elements to each line
management and other financial services to middle market, of business. For details of these methodologies and segment
large corporate, financial institution and public results, see ‘‘Basis for Financial Presentation’’ and Table 22
sector clients. ‘‘Line of Business Financial Performance’’ included in
Consumer Banking delivers products and services to the Management’s Discussion and Analysis which is
broad consumer market and small businesses through incorporated by reference into these Notes to Consolidated
banking offices, telemarketing, on-line services, direct mail Financial Statements.
and automated teller machines (‘‘ATMs’’).
66 U.S. Bancorp
Note 1