US Bank 2005 Annual Report Download - page 83

LONG-TERM DEBT
Long-term debt (debt with original maturities of more than one year) at December 31 consisted of the following:
(Dollars in Millions) 2005 2004
U.S. Bancorp (Parent Company)
Fixed-rate subordinated notes
7.625% due 2005 ************************************************************************************* $ — $ 120
6.75% due 2005 ************************************************************************************** — 186
6.875% due 2007 ************************************************************************************* 220 220
7.30% due 2007 ************************************************************************************** 74 171
7.50% due 2026 ************************************************************************************** 200 200
Floating-rate convertible senior debentures
2.69% due 2035 ************************************************************************************** 2,500 —
3.00% due 2035 ************************************************************************************** 2,000 —
Medium-term notes *************************************************************************************** 2,725 3,225
Junior subordinated debentures***************************************************************************** 3,152 2,629
Capitalized lease obligations, mortgage indebtedness and other (a) ********************************************** (17) 148
Subtotal******************************************************************************************* 10,854 6,899
Subsidiaries
Fixed-rate subordinated notes
7.30% due 2005 ************************************************************************************** — 100
6.875% due 2006 ************************************************************************************* 23 70
6.625% due 2006 ************************************************************************************* 26 100
6.50% due 2008 ************************************************************************************** 300 300
6.30% due 2008 ************************************************************************************** 300 300
5.70% due 2008 ************************************************************************************** 400 400
7.125% due 2009 ************************************************************************************* 500 500
7.80% due 2010 ************************************************************************************** — 300
6.375% due 2011 ************************************************************************************* 1,500 1,500
6.30% due 2014 ************************************************************************************** 963 963
4.95% due 2014 ************************************************************************************** 1,000 650
4.80% due 2015 ************************************************************************************** 500 500
3.80% due 2015 ************************************************************************************** 370 —
Floating-rate subordinated notes
4.42% due 2014 ************************************************************************************** 550 350
Federal Home Loan Bank advances ************************************************************************* 4,041 3,629
Bank notes ********************************************************************************************** 15,400 17,624
Capitalized lease obligations, mortgage indebtedness and other (a) ********************************************** 342 554
Subtotal******************************************************************************************* 26,215 27,840
Total ********************************************************************************************** $37,069 $34,739
(a) Other includes debt issuance fees and unrealized gains and losses and deferred fees relating to derivative instruments.
In August 2005, the Company issued floating-rate and unpaid interest. The debentures are convertible at any
convertible senior debentures of $2.5 billion, due time on or prior to the maturity date at an initial
August 21, 2035. These debentures bear interest at a conversion rate of 27.7316 shares for each $1,000
floating-rate equal to three-month LIBOR, minus debenture. This results in a conversion price of
1.68 percent, payable quarterly until August 21, 2026. After approximately $36.06 per share and represents a premium
that date, the Company will not pay interest on the of 20 percent over the closing sale price of $30.05 per share
debentures prior to maturity. On the maturity date or on August 9, 2005. If converted, holders of the convertible
certain earlier redemption dates, the holder will receive the debentures will generally receive cash up to the accreted
original principal amount of $1,000 per debenture, plus principal amount of the debentures and, if the market price
accrued interest. At December 31, 2005, the interest rate of the Company’s common stock exceeds the conversion
was 2.69 percent. The debentures are callable anytime on or price in effect on the conversion date, holders will also
after August 21, 2006, at a price equal to 100 percent of receive a number of shares of the Company’s common
the accreted principle amount plus accrued and unpaid stock, or the equivalent amount in cash at the option of the
interest and putable August 21, 2006, 2007, 2010, and Company, per debenture as determined pursuant to a
every five years, thereafter, until maturity at a price equal to specified formula.
100 percent of the accreted principle amount plus accrued
U.S. BANCORP 81
Note 14