US Bank 2014 Annual Report Download - page 115

The Company has arrangements with the Federal Home
Loan Bank and Federal Reserve Bank whereby the Company
could have borrowed an additional $76.0 billion and $69.7
billion at December 31, 2014 and 2013, respectively, based
on collateral available.
Maturities of long-term debt outstanding at December 31,
2014, were:
(Dollars in Millions)
Parent
Company Consolidated
2015 ................................... $ 1,750 $ 4,754
2016 ................................... 1,931 6,343
2017 ................................... 1,248 7,135
2018 ................................... 1,497 3,524
2019 ................................... 1,506 3,488
Thereafter ............................. 5,257 7,016
Total ................................... $13,189 $32,260
NOTE 14 JUNIOR SUBORDINATED DEBENTURES
As of December 31, 2014, the Company sponsored, and
wholly owned 100 percent of the common equity of, USB
Capital IX, a wholly-owned unconsolidated trust, formed for
the purpose of issuing redeemable Income Trust Securities
(“ITS”) to third party investors, originally investing the
proceeds in junior subordinated debt securities
(“Debentures”) issued by the Company and entering into
stock purchase contracts to purchase preferred stock in the
future. During 2010, the Company exchanged depositary
shares representing an ownership interest in its Series A
Non-Cumulative Perpetual Preferred Stock (“Series A
Preferred Stock”) to acquire a portion of the ITS issued by
USB Capital IX and retire a portion of the Debentures and
cancel a pro-rata portion of stock purchase contracts.
During 2011, USB Capital IX sold the remaining Debentures,
originally issued by the Company to the trust, to investors to
generate cash proceeds to purchase the Company’s Series A
Preferred Stock pursuant to the stock purchase contracts.
As part of this sale, a consolidated subsidiary of the
Company purchased $176 million of the Debentures, which
effectively retired the debt. The Company classifies the
remaining $500 million of Debentures at December 31, 2014
and 2013, as long-term debt. As of December 31, 2014 and
2013, $676 million of the Company’s Series A Preferred
StockwasthesoleassetofUSBCapitalIX.TheCompany’s
obligations under the transaction documents, taken
together, have the effect of providing a full and unconditional
guarantee by the Company, on a junior subordinated basis,
of the payment obligations of the trust.
NOTE 15 SHAREHOLDERS’ EQUITY
At December 31, 2014 and 2013, the Company had authority
to issue 4 billion shares of common stock and 50 million
shares of preferred stock. The Company had 1.8 billion
shares of common stock outstanding at December 31, 2014
and 2013. The Company had 91 million shares reserved for
future issuances, primarily under its stock incentive plans at
December 31, 2014.
The number of shares issued and outstanding and the carrying amount of each outstanding series of the Company’s
preferred stock was as follows:
2014 2013
At December 31,
(Dollars in Millions)
Shares
Issued and
Outstanding
Liquidation
Preference Discount
Carrying
Amount
Shares
Issued and
Outstanding
Liquidation
Preference Discount
Carrying
Amount
Series A ............................... 12,510 $1,251 $145 $1,106 12,510 $1,251 $145 $1,106
Series B .............................. 40,000 1,000 – 1,000 40,000 1,000 – 1,000
Series F ............................... 44,000 1,100 12 1,088 44,000 1,100 12 1,088
Series G .............................. 43,400 1,085 10 1,075 43,400 1,085 10 1,075
Series H .............................. 20,000 500 13 487 20,000 500 13 487
Total preferred stock(a) ............. 159,910 $4,936 $180 $4,756 159,910 $4,936 $180 $4,756
(a) The par value of all shares issued and outstanding at December 31, 2014 and 2013, was $1.00 per share.
During 2013, the Company issued depositary shares
representing an ownership interest in 20,000 shares of
Series H Non-Cumulative Perpetual Preferred Stock with a
liquidation preference of $25,000 per share (the “Series H
Preferred Stock”). The Series H Preferred Stock has no
stated maturity and will not be subject to any sinking fund or
other obligation of the Company. Dividends, if declared, will
accrue and be payable quarterly, in arrears, at a rate per
annum equal to 5.15 percent. The Series H Preferred Stock
is redeemable at the Company’s option, in whole or in part,
U.S. BANCORP The power of potential
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