US Bank 2006 Annual Report Download - page 83

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Aggregate amortization expense consisted of the following:
Year Ended December 31 (Dollars in Millions) 2006 2005 2004
Merchant processing contracts ********************************************************************** $149 $138 $132
Core deposit benefits****************************************************************************** 65 74 81
Mortgage servicing rights (a) *********************************************************************** – 144 243
Trust relationships ******************************************************************************** 71 47 49
Other identified intangibles ************************************************************************* 70 55 45
Total **************************************************************************************** $355 $458 $550
(a) Includes mortgage servicing rights reparation of $53 million and impairment of $57 million for the years ended December 31, 2005 and 2004, respectively.
Below is the estimated amortization expense for the next five years:
(Dollars in Millions)
2007*************************************************************************************************************************** $360
2008*************************************************************************************************************************** 309
2009*************************************************************************************************************************** 264
2010*************************************************************************************************************************** 201
2011*************************************************************************************************************************** 153
The following table reflects the changes in the carrying value of goodwill for the years ended December 31, 2006 and 2005:
Wholesale Consumer Wealth Payment Consolidated
(Dollars in Millions) Banking Banking Management Services Company
Balance at December 31, 2004 ********************************** $1,225 $2,242 $ 843 $1,931 $6,241
Goodwill acquired ***************************************** – – 500 248 748
Other (a) ************************************************ – – – 16 16
Balance at December 31, 2005 ********************************** $1,225 $2,242 $1,343 $2,195 $7,005
Goodwill acquired ***************************************** – 70 171 265 506
Other (a) ************************************************ – – – 27 27
Balance at December 31, 2006 ********************************** $1,225 $2,312 $1,514 $2,487 $7,538
(a) Other changes in goodwill include the effect of foreign exchange translation.
SHORT-TERM BORROWINGS
The following table is a summary of short-term borrowings for the last three years:
2006 2005 2004
(Dollars in Millions) Amount Rate Amount Rate Amount Rate
At year-end
Federal funds purchased ************************************* $ 2,554 4.97% $ 3,133 3.93% $ 3,379 1.25%
Securities sold under agreements to repurchase ****************** 9,763 4.57 10,854 3.65 4,848 1.95
Commercial paper ****************************************** 9,974 4.90 4,419 3.89 2,634 2.11
Treasury, tax and loan notes ********************************** 1 4.92 430 3.84 251 1.72
Other short-term borrowings ********************************** 4,641 3.95 1,364 3.90 1,972 2.20
Total ************************************************** $26,933 4.62% $20,200 3.76% $13,084 1.84%
Average for the year
Federal funds purchased ************************************* $ 3,458 8.30% $ 2,916 6.63% $ 3,823 3.10%
Securities sold under agreements to repurchase ****************** 10,680 4.24 11,849 2.93 6,144 1.19
Commercial paper ****************************************** 6,631 4.72 3,326 3.11 1,144 .91
Treasury, tax and loan notes ********************************** 166 4.82 142 3.17 804 1.01
Other short-term borrowings ********************************** 3,487 5.19 1,149 3.62 2,619 2.01
Total ************************************************** $24,422 5.08% $19,382 3.56% $14,534 1.81%
Maximum month-end balance
Federal funds purchased ************************************* $ 5,886 $ 4,659 $ 6,342
Securities sold under agreements to repurchase ****************** 13,988 14,931 8,972
Commercial paper ****************************************** 9,974 4,419 2,687
Treasury, tax and loan notes ********************************** 2,804 430 7,867
Other short-term borrowings ********************************** 4,756 1,563 3,856
U.S. BANCORP 81
Note 11