US Bank 2014 Annual Report Download - page 119

The following table provides the components of the Company’s regulatory capital at December 31:
(Dollars in Millions) 2014 2013
Basel III transitional standardized approach/Basel I:
Common shareholders’ equity ................................................................................... $ 38,723 $ 36,357
Less intangible assets
Goodwill (net of deferred tax liability) .......................................................................... (8,403) (8,343)
Other disallowed intangible assets ............................................................................ (165) (708)
Other(a) ........................................................................................................... 701 636
Total common equity tier 1 capital .......................................................................... 30,856
Qualifying preferred stock ....................................................................................... 4,756 4,756
Noncontrolling interests eligible for tier 1 capital ................................................................ 408 688
Total tier 1 capital .......................................................................................... 36,020 33,386
Eligible portion of allowance for credit losses ................................................................... 3,957 3,734
Subordinated debt and noncontrolling interests eligible for tier 2 capital ........................................ 3,215 2,299
Other ............................................................................................................ 16 (79)
Total tier 2 capital .......................................................................................... 7,188 5,954
Total risk-based capital .................................................................................... $ 43,208 $ 39,340
Risk-weighted assets ............................................................................................ $317,398 $297,919
Basel III transitional advanced approaches:
Common shareholders’ equity ................................................................................... $ 38,723
Less intangible assets
Goodwill (net of deferred tax liability) .......................................................................... (8,403)
Other disallowed intangible assets ............................................................................ (165)
Other(a) ........................................................................................................... 701
Total common equity tier 1 capital .......................................................................... 30,856
Qualifying preferred stock ....................................................................................... 4,756
Noncontrolling interests eligible for tier 1 capital ................................................................ 408
Total tier 1 capital .......................................................................................... 36,020
Eligible portion of allowance for credit losses ................................................................... 1,224
Subordinated debt and noncontrolling interests eligible for tier 2 capital ........................................ 3,215
Other ............................................................................................................ 16
Total tier 2 capital .......................................................................................... 4,455
Total risk-based capital .................................................................................... $ 40,475
Risk-weighted assets ............................................................................................ $248,596
Note: December 31, 2014 amounts calculated under the Basel III transitional standardized and advanced approaches, with the Company being evaluated for capital adequacy against the approach
that is most restrictive. December 31, 2013 amounts calculated under Basel I.
(a) Includes the impact of items included in other comprehensive income (loss), such as unrealized gains (losses) on available-for-sale securities, accumulated net gains on cash flow hedges,
pension liability adjustments, etc.
Noncontrolling interests principally represent third
party investors’ interests in consolidated entities, including
preferred stock of consolidated subsidiaries. During 2006,
the Company’s banking subsidiary formed USB Realty Corp.,
a real estate investment trust, for the purpose of issuing
5,000 shares of Fixed-to-Floating Rate Exchangeable Non-
cumulative Perpetual Series A Preferred Stock with a
liquidation preference of $100,000 per share (“Series A
Preferred Securities”) to third party investors. Dividends on
the Series A Preferred Securities, if declared, will accrue and
be payable quarterly, in arrears, at a rate per annum equal
to three-month LIBOR plus 1.147 percent. If USB Realty
Corp. has not declared a dividend on the Series A Preferred
Securities before the dividend payment date for any dividend
period, such dividend shall not be cumulative and shall
cease to accrue and be payable, and USB Realty Corp. will
have no obligation to pay dividends accrued for such dividend
period, whether or not dividends on the Series A Preferred
Securities are declared for any future dividend period.
The Series A Preferred Securities will be redeemable,
in whole or in part, at the option of USB Realty Corp. on each
fifth anniversary after the dividend payment date occurring in
January 2012. Any redemption will be subject to the approval
of the Office of the Comptroller of the Currency.
U.S. BANCORP The power of potential
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