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Note 13 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) Rate Type Rate (a) Maturity Date 2008 2007
U.S. Bancorp (Parent Company)
Subordinated notes. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Fixed 7.50% 2026 $ 199 $ 199
Convertible senior debentures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Floating .49% 2035 24 24
Floating .70% 2035 447 447
Floating –% 2036 64 456
Floating .96% 2037 75 3,000
Medium-term notes. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Fixed 4.50%-5.30% 2009-2010 1,350 1,500
Floating .50%-3.43% 2009-2010 4,435 1,000
Junior subordinated debentures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Fixed 5.54%-10.20% 2031-2067 4,058 4,058
Capitalized lease obligations, mortgage indebtedness and other (b) . . . . . . 179 24
Subtotal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10,831 10,708
Subsidiaries
Subordinated notes. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Fixed 6.50% 2008 – 300
Fixed 6.30% 2008 – 300
Fixed 5.70% 2008 – 400
Fixed 7.125% 2009 500 500
Fixed 6.375% 2011 1,500 1,500
Fixed 6.30% 2014 963 963
Fixed 4.95% 2014 1,000 1,000
Fixed 4.80% 2015 500 500
Fixed 3.80% 2015 369 369
Fixed 4.375% 2017 1,348 1,315
Floating 5.10% 2014 550 550
Federal Home Loan Bank advances . . . . . . . . . . . . . . . . . . . . . . . . . . . Fixed .50%-8.25% 2009-2026 6,415 5,309
Floating .65%-4.77% 2009-2017 10,373 11,848
Bank notes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Fixed 2.60%-5.92% 2009-2012 1,286 2,430
Floating 1.30%-2.56% 2009-2048 2,525 5,135
Capitalized lease obligations, mortgage indebtedness and other (b) . . . . . . 199 313
Subtotal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27,528 32,732
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $38,359 $43,440
(a) Weighted-average interest rates of medium-term notes, Federal Home Loan Bank advances and bank notes were 2.99 percent, 3.06 percent and 2.64 percent, respectively.
(b) Other includes debt issuance fees and unrealized gains and losses and deferred fees relating to derivative instruments.
Convertible senior debentures issued by the Company pay
interest on a quarterly basis until a specified period of time
(five or nine years prior to the applicable maturity date).
After this date, the Company will not pay interest on the
debentures prior to maturity. On the maturity date or on
any earlier redemption date, the holder will receive the
original principal plus accrued interest. The debentures are
convertible at any time on or prior to the maturity date. If
the convertible senior debentures are converted, holders of
the debentures will generally receive cash up to the accreted
principal amount of the debentures plus, if the market price
of the Company’s stock exceeds the conversion price in
effect on the date of conversion, a number of shares of the
Company’s common stock, or an equivalent amount of cash
at the Company’s option, as determined in accordance with
specified terms. The convertible senior debentures are
callable by the Company and putable by the investors at a
price equal to 100 percent of the accreted principal amount
plus accrued and unpaid interest. During 2008, investors
elected to put debentures with a principal amount of
$3.3 billion back to the Company. At December 31, 2008,
the weighted average conversion price per share for all
convertible issuances was $36.39.
U.S. BANCORP 87