US Bank 2004 Annual Report Download - page 99
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Please find page 99 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 significant components of the Company’s net deferred tax liability as of December 31 were:
(Dollars in Millions) 2004 2003
Deferred tax assets
Allowance for credit losses ******************************************************************************** $ 924.4 $ 977.6
Stock compensation ************************************************************************************* 303.3 318.2
Accrued expenses *************************************************************************************** 148.9 140.1
Intangible asset basis************************************************************************************* 146.1 133.1
Federal AMT credits and capital losses ********************************************************************* 59.1 59.1
Accrued severance, pension and retirement benefits ********************************************************** 16.3 69.3
Securities available-for-sale and financial instruments ********************************************************* 13.1 (31.2)
Federal and state net operating loss carryforwards *********************************************************** 9.2 21.2
Other deferred tax assets, net ***************************************************************************** 84.5 62.0
Gross deferred tax assets****************************************************************************** 1,704.9 1,749.4
Deferred tax liabilities
Leasing activities***************************************************************************************** (2,770.7) (2,509.6)
Pension and postretirement benefits ************************************************************************ (272.2) (308.0)
Mortgage servicing rights ********************************************************************************* (93.8) (60.0)
Other investment basis differences ************************************************************************* (80.4) (60.2)
Deferred fees******************************************************************************************** (77.8) 29.9
Loans ************************************************************************************************** (59.0) (59.0)
Accelerated depreciation********************************************************************************** (55.7) (142.3)
Other deferred tax liabilities, net**************************************************************************** (193.2) (195.6)
Gross deferred tax liabilities **************************************************************************** (3,602.8) (3,304.8)
Valuation allowance ************************************************************************************** (1.0) (1.0)
Net deferred tax liability ***************************************************************************** $(1,898.9) $(1,556.4)
The Company has established a valuation allowance to institutions would be recaptured if an entity ceases to
offset deferred tax assets related to state net operating loss qualify as a bank for federal income tax purposes. The base
carryforwards which are expected to expire unused. The year reserves of thrift institutions also remain subject to
Company has approximately $134 million of net operating income tax penalty provisions that, in general, require
loss carryforwards which expire at various times through recapture upon certain stock redemptions of, and excess
2009. distributions to, stockholders. At December 31, 2004,
Certain events covered by Internal Revenue Code retained earnings included approximately $101.8 million of
section 593(e), which was not repealed, will trigger a base year reserves for which no deferred federal income tax
recapture of base year reserves of acquired thrift liability has been recognized.
institutions. The base year reserves of acquired thrift
ASSET AND LIABILITY MANAGEMENT
Derivative Instruments
POSITIONS
In the ordinary course of business, the Company enters into Cash Flow Hedges The Company has $24.3 billion of
derivative transactions to manage its interest rate, designated cash flow hedges at December 31, 2004. These
prepayment and foreign currency risks and to accommodate derivatives are interest rate swaps that are hedges of the
the business requirements of its customers. The Company forecasted cash flows from the underlying variable-rate
does not enter into derivative transactions for speculative LIBOR loans and floating-rate debt. All cash flow hedges
purposes. Refer to Note 1 ‘‘Significant Accounting Policies’’ are highly effective for the year ended December 31, 2004,
in the Notes to Consolidated Financial Statements for a and the change in fair value attributed to hedge
discussion of the Company’s accounting policies for ineffectiveness was not material.
derivative instruments. For information related to derivative At December 31, 2004 and 2003, accumulated other
positions held for asset and liability management purposes comprehensive income included a deferred after-tax net gain
and customer-related derivative positions, see Table 17 of $113.4 million and $174.9 million, respectively, related
‘‘Derivative Positions,’’ included in Management’s to derivatives used to hedge cash flows. The unrealized gain
Discussion and Analysis, which is incorporated by reference will be reflected in earnings when the related cash flows or
in these Notes to Consolidated Financial Statements. hedged transactions occur and will offset the related
performance of the hedged items. The occurrence of these
U.S. BANCORP 97
Note 22