US Bank 2007 Annual Report Download - page 121

hazardous or toxic substances or chemical releases at a
property. The costs associated with investigation or
remediation activities could be substantial. In addition, if the
Company is the owner or former owner of a contaminated
site, it may be subject to common law claims by third
parties based on damages and costs resulting from
environmental contamination emanating from the property.
If the Company becomes subject to significant
environmental liabilities, its financial condition and results
of operations could be adversely affected.
A natural disaster could harm the Company’s business
Natural disasters could harm the Company’s operations
through interference with communications, including the
interruption or loss of the Company’s websites, which would
prevent the Company from gathering deposits, originating
loans and processing and controlling its flow of business, as
well as through the destruction of facilities and the
Company’s operational, financial and management
information systems.
The Company faces systems failure risks as well as
security risks, including “hacking” and “identity theft” The
computer systems and network infrastructure the Company
and others use could be vulnerable to unforeseen problems.
These problems may arise in both our internally developed
systems and the systems of our third-party service providers.
Our operations are dependent upon our ability to protect
computer equipment against damage from fire, power loss
or telecommunication failure. Any damage or failure that
causes an interruption in our operations could adversely
affect our business and financial results. In addition, our
computer systems and network infrastructure present
security risks, and could be susceptible to hacking or identity
theft.
The Company relies on dividends from its subsidiaries for
its liquidity needs The Company is a separate and distinct
legal entity from its bank subsidiaries and non-bank
subsidiaries. The Company receives substantially all of its
cash from dividends paid by its subsidiaries. These dividends
are the principal source of funds to pay dividends on the
Company’s stock and interest and principal on its debt.
Various federal and state laws and regulations limit the
amount of dividends that our bank subsidiaries and certain
of our non-bank subsidiaries may pay to the Company. Also,
the Company’s right to participate in a distribution of assets
upon a subsidiary’s liquidation or reorganization is subject
to prior claims of the subsidiary’s creditors.
The Company has non-banking businesses that are subject
to various risks and uncertainties The Company is a
diversified financial services company, and the Company’s
business model is based on a mix of businesses that provide
a broad range of products and services delivered through
multiple distribution channels. In addition to banking, the
Company provides payment services, investments, mortgages
and corporate and personal trust services. Although the
Company believes its diversity helps lessen the effect of
downturns in any one segment of its industry, it also means
the Company’s earnings could be subject to various specific
risks and uncertainties related to these non-banking
businesses.
The Company’s stock price can be volatile The Company’s
stock price can fluctuate widely in response to a variety of
factors, including: actual or anticipated variations in the
Company’s quarterly operating results; recommendations by
securities analysts; significant acquisitions or business
combinations; strategic partnerships, joint ventures or
capital commitments by or involving the Company or the
Company’s competitors; operating and stock price
performance of other companies that investors deem
comparable to the Company; new technology used or
services offered by the Company’s competitors; news reports
relating to trends, concerns and other issues in the financial
services industry; and changes in government regulations.
General market fluctuations, industry factors and general
economic and political conditions and events, including
terrorist attacks, economic slowdowns or recessions, interest
rate changes, credit loss trends or currency fluctuations, could
also cause the Company’s stock price to decrease regardless of
the Company’s operating results.
Website Access to SEC Reports U.S. Bancorp’s internet
website can be found at usbank.com. U.S. Bancorp makes
available free of charge on its website its annual reports on
Form 10-K, quarterly reports on Form 10-Q, current reports
on Form 8-K, and amendments to those reports filed or
furnished pursuant to Section 13 or 15(d) of the Exchange
Act, as well as all other reports filed by U.S. Bancorp with
the SEC, as soon as reasonably practicable after
electronically filed with, or furnished to, the SEC.
Certifications U.S. Bancorp has filed as exhibits to its annual
report on Form 10-K the Chief Executive Officer and Chief
Financial Officer certifications required by Section 302 of
the Sarbanes-Oxley Act. U.S. Bancorp has also submitted the
required annual Chief Executive Officer certification to the
New York Stock Exchange.
Governance Documents The Company’s Corporate
Governance Guidelines, Code of Ethics and Business
Conduct and Board of Directors committee charters are
available free of charge on the Company’s web site at
usbank.com, by clicking on “About U.S. Bancorp,” then
“Corporate Governance.” Shareholders may request a free
printed copy of any of these documents from the Company’s
investor relations department by contacting them at
[email protected] or calling [phone].
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