US Bank 2003 Annual Report Download - page 91

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Shareholders’ equity is affected by transactions and valuations of asset and liability positions that require adjustments to
Other Comprehensive Income. The reconciliation of the transactions affecting Other Comprehensive Income included in
shareholders’ equity for the years ended December 31, is as follows:
Transactions Balance
(Dollars in Millions) Pre-tax Tax-effect Net-of-tax Net-of-tax
2003
Unrealized loss on securities available-for-sale*********************************** $ (716) $ 272 $(444) $(123)
Unrealized loss on derivatives ************************************************* (373) 142 (231) 35
Realized gain on derivatives *************************************************** 199 (76) 123 140
Reclassification adjustment for gains
realized in net income ***************************************************** (288) 110 (178) —
Foreign currency translation adjustment ***************************************** 23 (9) 14 16
Total ********************************************************************* $(1,155) $ 439 $(716) $ 68
2002
Unrealized gain on securities available-for-sale ********************************** $ 1,048 $(398) $ 650 $ 473
Unrealized gain on derivatives ************************************************* 324 (123) 201 266
Realized gain on derivatives *************************************************** 64 (24) 40 43
Reclassification adjustment for gains
realized in net income ***************************************************** (332) 126 (206) —
Foreign currency translation adjustment ***************************************** 7(3)42
Total ********************************************************************* $ 1,111 $(422) $ 689 $ 784
2001
Unrealized gain on securities available-for-sale ********************************** $ 194 $ (78) $ 116 $ 9
Unrealized gain on derivatives ************************************************* 106 (40) 66 65
Realized gain on derivatives *************************************************** 42 (16) 26 24
Reclassification adjustment for gains
realized in net income ***************************************************** (333) 127 (206) —
Foreign currency translation adjustment ***************************************** (4) 1 (3) (3)
Total ********************************************************************* $ 5 $(6) $(1) $95
Earnings Per Share
The components of earnings per share were:
(Dollars and Shares in Millions, Except Per Share Data) 2003 2002 2001
Income from continuing operations ******************************************************* $3,710.1 $3,228.0 $1,524.0
Income (loss) from discontinued operations (after-tax)*********************************** 22.5 (22.7) (45.2)
Cumulative effect of accounting change (after-tax) ************************************** — (37.2) —
Net income ********************************************************************* $3,732.6 $3,168.1 $1,478.8
Weighted-average common shares outstanding ******************************************** 1,923.7 1,916.0 1,927.9
Net effect of the assumed purchase of stock based on the treasury stock method for options
and stock plans ********************************************************************** 12.5 8.8 12.4
Weighted-average diluted common shares outstanding ************************************* 1,936.2 1,924.8 1,940.3
Earnings per share
Income from continuing operations **************************************************** $ 1.93 $ 1.68 $ .79
Discontinued operations ********************************************************** .01 (.01) (.02)
Cumulative effect of accounting change ******************************************** — (.02) —
Net income ****************************************************************** $ 1.94 $ 1.65 $ .77
Diluted earnings per share
Income from continuing operations **************************************************** $ 1.92 $ 1.68 $ .79
Discontinued operations ********************************************************** .01 (.01) (.03)
Cumulative effect of accounting change ******************************************** — (.02) —
Net income ****************************************************************** $ 1.93 $ 1.65 $ .76
For the years ended December 31, 2003, 2002 and 2001, the computation of diluted earnings per share because they
options to purchase 79 million, 140 million and 125 million were antidilutive.
shares, respectively, were outstanding but not included in
U.S. Bancorp 89
Note 17