US Bank 2005 Annual Report Download - page 87

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Shareholders’ equity is affected by transactions and valuations of asset and liability positions that require adjustments to
Accumulated Other Comprehensive Income. The reconciliation of the transactions affecting Accumulated Other
Comprehensive Income included in shareholders’ equity for the years ended December 31, is as follows:
Transactions Balances
(Dollars in Millions) Pre-tax Tax-effect Net-of-tax Net-of-Tax
2005
Unrealized loss on securities available-for-sale*********************************** $ (539) $205 $(334) $(402)
Unrealized loss on derivatives ************************************************* (58) 22 (36) (27)
Foreign currency translation adjustment **************************************** 3(1)27
Realized loss on derivatives*************************************************** (74) 28 (46) 16
Reclassification adjustment for losses realized in net income ********************** 39 (15) 24 —
Minimum pension liability adjustment ******************************************* (38) 15 (23) (23)
Total ******************************************************************* $ (667) $254 $(413) $(429)
2004
Unrealized loss on securities available-for-sale*********************************** $ (123) $ 47 $ (76) $(135)
Unrealized loss on derivatives ************************************************* (43) 16 (27) 9
Foreign currency translation adjustment **************************************** (17) 6 (11) 5
Realized gain on derivatives ************************************************** 16 (6) 10 105
Reclassification adjustment for losses realized in net income ********************** 32 (12) 20 —
Total ******************************************************************* $ (135) $ 51 $ (84) $ (16)
2003
Unrealized loss on securities available-for-sale*********************************** $ (716) $272 $(444) $(123)
Unrealized loss on derivatives ************************************************* (373) 142 (231) 35
Foreign currency translation adjustment **************************************** 23 (9) 14 16
Realized gain on derivatives ************************************************** 199 (76) 123 140
Reclassification adjustment for gains realized in net income *********************** (288) 110 (178) —
Total ******************************************************************* $(1,155) $439 $(716) $ 68
Regulatory Capital The measures used to assess capital December 31, 2005 and 2004, for the Company and its
include the capital ratios established by bank regulatory bank subsidiaries, see Table 21 included in Management’s
agencies, including the specific ratios for the ‘‘well Discussion and Analysis, which is incorporated by reference
capitalized’’ designation. For a description of the regulatory into these Notes to Consolidated Financial Statements.
capital requirements and the actual ratios as of
EARNINGS PER SHARE
The components of earnings per share were:
(Dollars and Shares in Millions, Except Per Share Data) 2005 2004 2003
Income from continuing operations ************************************************************** $4,489 $4,167 $3,710
Income from discontinued operations (after-tax) *************************************************** ——23
Net income **************************************************************************** $4,489 $4,167 $3,733
Average common shares outstanding ************************************************************ 1,831 1,887 1,924
Net effect of the assumed purchase of stock based on the treasury stock method for options and
stock plans ******************************************************************************* 26 26 12
Average diluted common shares outstanding****************************************************** 1,857 1,913 1,936
Earnings per share
Income from continuing operations *********************************************************** $ 2.45 $ 2.21 $ 1.93
Discontinued operations ******************************************************************** — — .01
Net income ************************************************************************* $ 2.45 $ 2.21 $ 1.94
Diluted earnings per share
Income from continuing operations *********************************************************** $ 2.42 $ 2.18 $ 1.92
Discontinued operations ******************************************************************** — — .01
Net income ************************************************************************* $ 2.42 $ 2.18 $ 1.93
U.S. BANCORP 85
Note 17