US Bank 2013 Annual Report Download - page 112

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Additional detail about the impact to net income for items reclassified out of accumulated other comprehensive income and
into earnings for the year ended December 31, 2013, is as follows:
(Dollars in Millions)
Impact to
Net Income
Affected Line Item in the
Consolidated Statement of Income
Unrealized gains (losses) on securities available-for-sale
Realized gains (losses) on sale of securities .............................................. $ 23 Total securities gains (losses), net
Other-than-temporary impairment recognized in earnings ................................ (14)
9 Total before tax
(4) Applicable income taxes
5 Net-of-tax
Unrealized gains (losses) on securities transferred from available-for-sale to
held-to-maturity
Amortization of unrealized gains .......................................................... 59 Interest income
(22) Applicable income taxes
37 Net-of-tax
Unrealized gains (losses) on derivative hedges
Realized gains (losses) on derivative hedges ............................................. (192) Net interest income
74 Applicable income taxes
(118) Net-of-tax
Unrealized gains (losses) on retirement plans
Actuarial gains (losses), prior service cost (credit) and transition obligation (asset)
amortization ............................................................................. (249) Employee benefits expense
96 Applicable income taxes
(153) Net-of-tax
Total impact to net income ................................................................... $(229)
Regulatory Capital The measures used to assess capital
by bank regulatory agencies include two principal risk-
based ratios, Tier 1 and total risk-based capital. Tier 1
capital is considered core capital and includes common
shareholders’ equity plus qualifying preferred stock, trust
preferred securities and noncontrolling interests in
consolidated subsidiaries (subject to certain limitations), and
is adjusted for the aggregate impact of certain items
included in other comprehensive income (loss). Total risk-
based capital includes Tier 1 capital and other items such as
subordinated debt and the allowance for credit losses. Both
measures are stated as a percentage of risk-adjusted
assets, which are measured based on their perceived credit
risk and include certain off-balance sheet exposures, such
as unfunded loan commitments, letters of credit, and
derivative contracts. The Company is also subject to a
leverage ratio requirement, a non risk-based asset ratio,
which is defined as Tier 1 capital as a percentage of average
assets adjusted for goodwill and other non-qualifying
intangibles and other assets.
For a summary of the regulatory capital requirements
and the actual ratios as of December 31, 2013 and 2012, for
the Company and its bank subsidiary, see Table 22 included
in Management’s Discussion and Analysis, which is
incorporated by reference into these Notes to Consolidated
Financial Statements.
110 U.S. BANCORP