US Bank 2003 Annual Report Download - page 76

Download and view the complete annual report

Please find page 76 of the 2003 US Bank annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 127

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127

The components of the merger and restructuring-related items are shown below:
(Dollars in Millions) USBM NOVA Other (a) Total
2003
Severance and employee-related ******************************** $— $.8 $— $ .8
Systems conversions and integration***************************** — 25.9 6.9 32.8
Asset write-downs and lease terminations ************************ — 6.8 3.0 9.8
Other merger-related items ************************************* — — 1.4 1.4
Total 2003 **************************************************** $ — $33.5 $11.3 $ 44.8
Noninterest expense ******************************************* $ — $33.5 $12.7 $ 46.2
Balance sheet recognition ************************************** — — (1.4) (1.4)
Merger-related items — 2003 ******************************** $ — $33.5 $11.3 $ 44.8
2002
Severance and employee-related ******************************** $ 4.1 $ (3.8) $ 9.1 $ 9.4
Systems conversions and integration***************************** 194.9 29.4 17.3 241.6
Asset write-downs and lease terminations ************************ 104.0 14.2 6.0 124.2
Balance sheet restructurings ************************************ (38.8) — — (38.8)
Other merger-related items ************************************* 4.8 (1.1) 3.5 7.2
Total 2002 **************************************************** $ 269.0 $38.7 $35.9 $ 343.6
Noninterest expense ******************************************* $ 269.0 $34.9 $17.3 $ 321.2
Balance sheet recognition ************************************** — 3.8 18.6 22.4
Merger-related items — 2002 ******************************** $ 269.0 $38.7 $35.9 $ 343.6
2001
Severance and employee-related ******************************** $ 238.6 $23.3 $17.8 $ 279.7
Stock-based compensation ************************************* 190.5 — — 190.5
Systems conversions and integration***************************** 207.1 1.6 15.2 223.9
Asset write-downs and lease terminations ************************ 130.4 34.7 5.7 170.8
Charitable contributions **************************************** 76.0 — — 76.0
Balance sheet restructurings ************************************ 457.6 — — 457.6
Branch sale gain ********************************************** (62.2) — — (62.2)
Branch consolidations ****************************************** 20.0 — — 20.0
Other merger-related items ************************************* 69.1 24.2 4.8 98.1
Total 2001 **************************************************** $1,327.1 $83.8 $43.5 $1,454.4
Provision for credit losses ************************************** $ 382.2 $ — $ — $ 382.2
Noninterest income ******************************************** (62.2) — — (62.2)
Noninterest expense ******************************************* 1,007.1 1.6 36.1 1,044.8
Merger-related items **************************************** $1,327.1 $ 1.6 $36.1 $1,364.8
Balance sheet recognition ************************************** — 82.2 7.4 89.6
Merger-related items — 2001 ******************************** $1,327.1 $83.8 $43.5 $1,454.4
(a) In 2003 and 2002, ‘‘Other’’ primarily included merger and restructuring-related items pertaining to the Bay View acquisition, State Street Corporate Trust and the Lyon Financial
acquisition. In 2001, ‘‘Other’’ primarily included the 1999 merger of Firstar and Mercantile Bancorporation, Inc. and the 1998 acquisition of the former Firstar Corporation by Star
Banc. Star Banc was renamed Firstar Corporation.
The Company determines merger and restructuring- employees included in severance amounts were
related items and related accruals based on its integration approximately 2,860 for USBM, and 400 for NOVA. In
strategy and formulated plans. These plans are established 2002, the Company recognized additional severance costs of
as of the acquisition date and are regularly evaluated during $13.1 million in connection with the USBM merger offset
the integration process. by net curtailment and settlement gains of $9.0 million
Severance and employee-related charges include the cost related to changes in certain non-qualified pension plans.
of severance, other benefits and outplacement costs Changes in severance costs for USBM and NOVA primarily
associated with the termination of employees primarily in reflected a change in estimate in the liability given the mix
branch offices and centralized corporate support and data of employees terminated. Severance and employee-related
processing functions. The severance amounts are determined costs for identified groups of acquired employees are
based on the Company’s existing severance pay programs included in the determination of goodwill at closing.
and are paid out over a benefit period of up to two years Severance and employee-related costs are recorded as
from the time of termination. The total number of incurred for groups of employees not specifically identified
74 U.S. Bancorp