US Bank 2004 Annual Report Download - page 78
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Please find page 78 of the 2004 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.The components of the merger and restructuring-related accruals for all acquisitions were as follows:
December 31,
(Dollars in Millions) 2003
Severance *********************************************************************************************************** $ 3.4
Other employee-related costs******************************************************************************************* 1.1
Lease termination and facility costs************************************************************************************** 14.4
Contracts and system write-offs **************************************************************************************** 2.4
Other *************************************************************************************************************** 3.3
Total ************************************************************************************************************* $24.6
The merger and restructuring-related accruals by significant acquisition or business restructuring was as follows:
December 31,
(Dollars in Millions) 2003
NOVA *************************************************************************************************************** $18.1
State Street Corporate Trust******************************************************************************************** 4.1
USBM*************************************************************************************************************** 2.4
Total ************************************************************************************************************* $24.6
At December 31, 2002, the integration of Firstar and platforms and business processes of U.S Bank National
USBM was completed. The only activity in the USBM Association and NOVA, as well as systems conversions for
liability during 2004 was related to the payout of severance the acquisitions of the State Street Corporate Trust business
costs. In 2003, the integration of merchant processing and Bay View were completed.
Restrictions on Cash and Due from Banks
Bank subsidiaries are required to maintain minimum average reserve balances with the Federal Reserve Bank. The amount of
those reserve balances was approximately $169 million at December 31, 2004.
Investment Securities
The detail of the amortized cost, gross unrealized holding gains and losses, and fair value of held-to-maturity and available-
for-sale securities at December 31 was as follows:
2004 2003
Amortized Unrealized Unrealized Fair Amortized Unrealized Unrealized Fair
(Dollars in Millions) Cost Gains Losses Value Cost Gains Losses Value
Held-to-maturity (a)
Mortgage-backed securities ************* $11 $— $—$11 $14 $— $—$14
Obligations of state and political
subdivisions *********************** 98 7 (2) 103 138 11 (2) 147
Other debt securities ******************* 18——18 ————
Total held-to-maturity securities ******* $ 127 $ 7 $ (2) $ 132 $ 152 $ 11 $ (2) $ 161
Available-for-sale (b)
U.S. Treasury and agencies ************* $ 684 $ 3 $ (8) $ 679 $ 1,634 $ 10 $ (69) $ 1,575
Mortgage-backed securities ************* 39,809 65 (337) 39,537 40,229 203 (407) 40,025
Asset-backed securities **************** 64 — — 64 250 5 (3) 252
Obligations of state and political
subdivisions *********************** 205 6 — 211 335 13 — 348
Other securities and investments********* 863 11 (11) 863 993 9 (20) 982
Total available-for-sale securities ****** $41,625 $85 $(356) $41,354 $43,441 $240 $(499) $43,182
(a) Held-to-maturity securities are carried at historical cost adjusted for amortization of premiums and accretion of discounts.
(b) Available-for-sale securities are carried at fair value with unrealized net gains or losses reported within other comprehensive income in shareholders’ equity.
The fair value of available-for-sale securities shown principal and interest payments on available-for-sale debt
above includes securities totaling $4.8 billion with securities in an unrealized loss position for greater than
unrealized losses of $148.8 million which have been in an 12 months are expected to be collected given the high credit
unrealized loss position for greater than 12 months. All quality of the U.S. government agency debt securities and
76 U.S. BANCORP
Note 6
Note 7