US Bank 2013 Annual Report Download - page 108

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NOTE 11 Short-Term Borrowings (a)
The following table is a summary of short-term borrowings for the last three years:
2013 2012 2011
(Dollars in Millions) Amount Rate Amount Rate Amount Rate
At year-end
Federal funds purchased ............................... $ 594 .11% $ 950 .11% $ 1,036 .11%
Securities sold under agreements to repurchase ....... 2,057 5.34 3,388 3.26 6,986 3.35
Commercial paper ...................................... 19,400 .11 16,202 .12 15,973 .12
Other short-term borrowings ............................ 5,557 .19 5,762 .29 6,473 .26
Total .................................................. $27,608 .52% $26,302 .57% $30,468 .89%
Average for the year
Federal funds purchased (b) ........................... $ 1,879 9.72% $ 1,338 15.32% $ 968 22.61%
Securities sold under agreements to repurchase ....... 2,403 4.65 4,942 3.52 7,483 3.22
Commercial paper ...................................... 17,467 .12 15,806 .14 15,204 .15
Other short-term borrowings ............................ 5,934 .72 6,463 .72 7,048 .77
Total (b) .............................................. $27,683 1.29% $28,549 1.57% $30,703 1.75%
Maximum month-end balance
Federal funds purchased ............................... $ 3,569 $ 2,467 $ 1,172
Securities sold under agreements to repurchase ....... 3,121 5,922 9,071
Commercial paper ...................................... 19,400 17,385 16,768
Other short-term borrowings ............................ 6,301 7,443 7,514
(a) Interest and rates are presented on a fully taxable-equivalent basis utilizing a tax rate of 35 percent.
(b) Average federal funds purchased and total short-term borrowings rates include amounts paid by the Company to certain corporate card customers for paying outstanding noninterest-
bearing corporate card balances within certain timeframes per specific agreements. These activities reduce the Company’s short-term funding needs, and if they did not occur, the
Company would use other funding alternatives, including the use of federal funds purchased. The amount of this compensation expense paid by the Company and included in federal
funds purchased and total short-term borrowings rates for 2013, 2012 and 2011 was $181 million, $203 million and $218 million, respectively.
NOTE 12 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 2013 2012
U.S. Bancorp (Parent Company)
Subordinated notes .......................................... Fixed 2.950% 2022 $ 1,300 $ 1,300
Fixed 7.500% 2026 199 199
Medium-term notes .......................................... Fixed 1.650% - 4.200% 2014 - 2022 8,750 10,600
Floating .728% 2018 500 –
Junior subordinated debentures ............................. Fixed 3.442% 2016 500 500
Capitalized lease obligations, mortgage indebtedness and
other (b) ................................................... 167 173
Subtotal ................................................... 11,416 12,772
Subsidiaries
Subordinated notes .......................................... Fixed 6.300% 2014 963 963
Fixed 4.950% 2014 1,000 1,000
Fixed 4.800% 2015 500 500
Fixed 3.778% 2020 500 500
Floating .524% 2014 373 373
Federal Home Loan Bank advances ......................... Fixed 1.250% - 8.250% 2014 - 2026 13 16
Floating .238% - .505% 2014 - 2022 4,579 4,579
Bank notes ................................................... Floating –% 2046 - 2048 142 143
Capitalized lease obligations, mortgage indebtedness and
other (b) ................................................... 563 4,670
Subtotal ................................................... 8,633 12,744
Total ....................................................... $20,049 $25,516
(a) Weighted-average interest rates of Federal Home Loan Bank advances and fixed-rate medium-term notes were .28 percent and 2.78 percent, respectively.
(b) Other includes consolidated community development and tax-advantaged investment VIEs, debt issuance fees, and unrealized gains and losses and deferred amounts relating to
derivative instruments.
106 U.S. BANCORP