US Bank 2004 Annual Report Download - page 86
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Please find page 86 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.Intangible Assets
The Company adopted Statement of Financial Accounting undiscounted cash flow model. As a result of the initial
Standards No. 142 (‘‘SFAS 142’’), ‘‘Goodwill and Other impairment test from the adoption of SFAS 142, the
Intangible Assets’’ on January 1, 2002. The most significant Company recognized an impairment loss of $58.8 million
changes made by SFAS 142 are that goodwill and other resulting in an after-tax loss of $37.2 million in the first
indefinite lived intangible assets are no longer amortized quarter of 2002. The impairment was primarily related to
and will be tested for impairment at least annually. The the purchase of a transportation leasing company in 1998
amortization provisions of SFAS 142 apply to goodwill and by the equipment leasing business. This charge was
intangible assets acquired after June 30, 2001. With respect recognized as a ‘‘cumulative effect of accounting change’’ in
to goodwill and intangible assets acquired prior to July 1, the income statement. The fair value of that reporting unit
2001, the amortization provisions of SFAS 142 were was estimated using the present value of future expected
effective upon adoption of SFAS 142. cash flows.
Prior to the adoption of SFAS 142, the Company
evaluated goodwill for impairment under a projected
Net income and earnings per share adjusted for the exclusion of asset impairments related to goodwill are as follows:
Year Ended December 31 (Dollars in Millions, Except Per Share Data) 2004 2003 2002
Reported net income ********************************************************************* $4,166.8 $3,732.6 $3,168.1
Asset impairments, net of tax *********************************************************** — — 37.2
Adjusted net income *************************************************************** $4,166.8 $3,732.6 $3,205.3
Earnings per share
Reported net income ****************************************************************** $ 2.21 $ 1.94 $ 1.65
Asset impairments, net of tax *********************************************************** — — .02
Adjusted net income *************************************************************** $ 2.21 $ 1.94 $ 1.67
Diluted earnings per share
Reported net income ****************************************************************** $ 2.18 $ 1.93 $ 1.65
Asset impairments, net of tax *********************************************************** — — .02
Adjusted net income *************************************************************** $ 2.18 $ 1.93 $ 1.67
The following table reflects the changes in the carrying value of goodwill for the years ended December 31, 2003 and 2004:
Private Client,
Wholesale Consumer Trust and Asset Payment Capital Consolidated
(Dollars in Millions) Banking Banking Management Services Markets Company
Balance at December 31, 2002 *********** $1,230 $2,241 $736 $1,812 $ 306 $6,325
Goodwill acquired ********************* —164—11
Other (a) ***************************** (5) — — — (306) (311)
Balance at December 31, 2003 *********** $1,225 $2,242 $742 $1,816 $ — $6,025
Goodwill acquired ********************* — — 101 105 — 206
Other (a) ***************************** ———10—10
Balance at December 31, 2004 *********** $1,225 $2,242 $843 $1,931 $ — $6,241
(a) In 2003, the Company completed a tax-free distribution of Piper Jaffray Companies. Other changes in goodwill include goodwill associated with Piper Jaffray Companies and foreign
exchange effects on non-dollar-denominated goodwill.
84 U.S. BANCORP
Note 13