US Bank 2012 Annual Report Download - page 70

The following table shows the Company’s calculation of these Non-GAAP financial measures:
At December 31 (Dollars in Millions) 2012 2011 2010 2009 2008
Total equity .............................................................. $ 40,267 $ 34,971 $ 30,322 $ 26,661 $ 27,033
Preferred stock .......................................................... (4,769) (2,606) (1,930) (1,500) (7,931)
Noncontrolling interests.................................................. (1,269) (993) (803) (698) (733)
Goodwill (net of deferred tax liability) .................................... (8,351) (8,239) (8,337) (8,482) (8,153)
Intangible assets, other than mortgage servicing rights .................. (1,006) (1,217) (1,376) (1,657) (1,640)
Tangible common equity (a) ........................................... 24,872 21,916 17,876 14,324 8,576
Tier 1 capital, determined in accordance with prescribed regulatory
requirements using Basel I definition .................................. 31,203 29,173 25,947 22,610 24,426
Trust preferred securities ................................................ – (2,675) (3,949) (4,524) (4,024)
Preferred stock .......................................................... (4,769) (2,606) (1,930) (1,500) (7,931)
Noncontrolling interests, less preferred stock not eligible for Tier 1
capital ................................................................. (685) (687) (692) (692) (693)
Tier 1 common equity using Basel I definition (b) ..................... 25,749 23,205 19,376 15,894 11,778
Tangible common equity (as calculated above) .......................... 21,916 17,876
Adjustments (1) .......................................................... 450 381
Tier 1 common equity using Basel III proposals published prior to
June 2012 (c) ....................................................... 22,366 18,257
Tangible common equity (as calculated above) .......................... 24,872
Adjustments (2) .......................................................... 126
Tier 1 common equity approximated using proposed rules for the
Basel III standardized approach released June 2012 (d)............ 24,998
Total assets .............................................................. 353,855 340,122 307,786 281,176 265,912
Goodwill (net of deferred tax liability) .................................... (8,351) (8,239) (8,337) (8,482) (8,153)
Intangible assets, other than mortgage servicing rights .................. (1,006) (1,217) (1,376) (1,657) (1,640)
Tangible assets (e) .................................................... 344,498 330,666 298,073 271,037 256,119
Risk-weighted assets, determined in accordance with prescribed
regulatory requirements using Basel I definition (f) .................... 287,611 271,333 247,619 235,233 230,628
Risk-weighted assets using Basel III proposals published prior to June
2012 (g) ............................................................... 274,351 251,704
Risk-weighted assets, determined in accordance with prescribed
regulatory requirements using Basel I definition ....................... 287,611
Adjustments (3) .......................................................... 21,233
Risk-weighted assets approximated using proposed rules for the Basel
III standardized approach released June 2012 (h) ..................... 308,844
Ratios
Tangible common equity to tangible assets (a)/(e) ....................... 7.2% 6.6% 6.0% 5.3% 3.3%
Tangible common equity to risk-weighted assets using Basel I
definition (a)/(f) ........................................................ 8.6 8.1 7.2 6.1 3.7
Tier 1 common equity to risk-weighted assets using Basel I
definition (b)/(f) ........................................................ 9.0 8.6 7.8 6.8 5.1
Tier 1 common equity to risk-weighted assets using Basel III proposals
published prior to June 2012 (c)/(g) ................................... – 8.2 7.3 – –
Tier 1 common equity to risk-weighted assets approximated using
proposed rules for the Basel III standardized approach released
June 2012 (d)/(h) ...................................................... 8.1 – – – –
(1) Principally net losses on cash flow hedges included in accumulated other comprehensive income.
(2) Includes net losses on cash flow hedges included in accumulated other comprehensive income, unrealized losses on securities transferred from available-for-sale to held-to-maturity included in
accumulated other comprehensive income and disallowed mortgage servicing rights.
(3) Includes higher risk-weighting for residential mortgages, unfunded loan commitments, investment securities and mortgage servicing rights, and other adjustments.
Accounting Changes
To the extent the adoption of new accounting standards
materially affects the Company’s financial condition or results
of operations, the impacts are discussed in the applicable
section(s) of the Management’s Discussion and Analysis and
the Notes to Consolidated Financial Statements.
Critical Accounting Policies
The accounting and reporting policies of the Company
comply with accounting principles generally accepted in the
United States and conform to general practices within the
banking industry. The preparation of financial statements in
conformity with GAAP requires management to make
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