US Bank 2014 Annual Report Download - page 114

Download and view the complete annual report

Please find page 114 of the 2014 US Bank annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 173

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143
  • 144
  • 145
  • 146
  • 147
  • 148
  • 149
  • 150
  • 151
  • 152
  • 153
  • 154
  • 155
  • 156
  • 157
  • 158
  • 159
  • 160
  • 161
  • 162
  • 163
  • 164
  • 165
  • 166
  • 167
  • 168
  • 169
  • 170
  • 171
  • 172
  • 173

NOTE 12 SHORT-TERM BORROWINGS(a)
The following table is a summary of short-term borrowings for the last three years:
2014 2013 2012
(Dollars in Millions) Amount Rate Amount Rate Amount Rate
At year-end
Federal funds purchased ................................. $ 886 .12% $ 594 .11% $ 950 .11%
Securities sold under agreements to repurchase ......... 948 .05 2,057 5.34 3,388 3.26
Commercial paper ....................................... 22,197 .12 19,400 .11 16,202 .12
Other short-term borrowings............................. 5,862 .51 5,557 .19 5,762 .29
Total ................................................... $29,893 .19% $27,608 .52% $26,302 .57%
Averagefortheyear
Federal funds purchased(b) ............................... $ 2,366 7.94% $ 1,879 9.72% $ 1,338 15.32%
Securities sold under agreements to repurchase ......... 798 1.07 2,403 4.65 4,942 3.52
Commercial paper ....................................... 21,227 .12 17,467 .12 15,806 .14
Other short-term borrowings............................. 5,861 .78 5,934 .72 6,463 .72
Total(b) ................................................. $30,252 .88% $27,683 1.29% $28,549 1.57%
Maximum month-end balance
Federal funds purchased ................................. $ 3,258 $ 3,569 $ 2,467
Securities sold under agreements to repurchase ......... 948 3,121 5,922
Commercial paper ....................................... 22,322 19,400 17,385
Other short-term borrowings............................. 7,417 6,301 7,443
(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 2014, 2013 and 2012 was $186 million, $181 million and $203 million, respectively.
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 2014 2013
U.S. Bancorp (Parent Company)
Subordinated notes .......................................... Fixed 2.950% 2022 $ 1,300 $ 1,300
Fixed 3.600% 2024 1,000 –
Fixed 7.500% 2026 199 199
Medium-term notes ......................................... Fixed 1.650% - 4.125% 2015 - 2024 9,250 8,750
Floating .634% - .722% 2018 - 2019 750 500
Junior subordinated debentures ............................. Fixed 3.442% 2016 500 500
Capitalized lease obligations, mortgage indebtedness and
other(b) .................................................... 190 167
Subtotal .................................................. 13,189 11,416
Subsidiaries
Subordinated notes .......................................... Fixed 6.300% 2014 – 963
Fixed 4.950% 2014 – 1,000
Fixed 4.800% 2015 500 500
Fixed 3.778% 2020 500 500
Floating .524% 2014 – 373
Federal Home Loan Bank advances ......................... Fixed 1.250% - 8.250% 2017 - 2026 11 13
Floating .236% - .507% 2015 - 2022 7,334 4,579
Bank notes .................................................. Fixed 1.100% - 2.125% 2017 - 2019 4,050 –
Floating –% - .713% 2015 - 2054 6,069 142
Capitalized lease obligations, mortgage indebtedness and
other(b) .................................................... 607 563
Subtotal .................................................. 19,071 8,633
Total ...................................................... $32,260 $20,049
(a) Weighted-average interest rates of medium-term notes, Federal Home Loan Bank advances and bank notes were 2.47 percent, .31 percent and .85 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.
112