US Bank 2014 Annual Report Download - page 134

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The following tables provide information on the Company’s netting adjustments, and items not offset on the Consolidated
Balance Sheet but available for offset in the event of default:
Gross
Recognized
Assets
Gross Amounts
Offset on the
Consolidated
Balance Sheet(a)
Net Amounts
Presented on the
Consolidated
Balance Sheet
Gross Amounts Not Offset on the
Consolidated Balance Sheet
(Dollars in Millions)
Financial
Instruments(b)
Collateral
Received(c) Net Amount
December 31, 2014
Derivative assets(d) ............ $1,847 $(870) $ 977 $(58) $ – $919
Reverse repurchase
agreements ................ 40 – 40 (40) – –
Securities borrowed .......... 638 – 638 – (620) 18
Total ....................... $2,525 $(870) $1,655 $(98) $(620) $937
December 31, 2013
Derivative assets(d) ............ $1,349 $(599) $ 750 $(21) $ – $729
Reverse repurchase
agreements ................ 87 – 87 (59) (28) –
Securities borrowed .......... 723 – 723 – (698) 25
Total ....................... $2,159 $(599) $1,560 $(80) $(726) $754
(a) Includes $258 million and $124 million of cash collateral related payables that were netted against derivative assets at December 31, 2014 and 2013, respectively.
(b) For derivative assets this includes any derivative liability fair values that could be offset in the event of counterparty default; for reverse repurchase agreements this includes any repurchase
agreement payables that could be offset in the event of counterparty default; for securities borrowed this includes any securities loaned payables that could be offset in the event of counterparty
default.
(c) Includes the fair value of securities received by the Company from the counterparty. These securities are not included on the Consolidated Balance Sheet unless the counterparty defaults.
(d) Excludes $221 million and $55 million of derivative assets centrally cleared or otherwise not subject to netting arrangements at December 31, 2014 and 2013, respectively.
Gross
Recognized
Liabilities
Gross Amounts
Offset on the
Consolidated
Balance Sheet(a)
Net Amounts
Presented on the
Consolidated
Balance Sheet
Gross Amounts Not Offset on the
Consolidated Balance Sheet
(Dollars in Millions)
Financial
Instruments(b)
Collateral
Pledged(c) Net Amount
December 31, 2014
Derivative liabilities(d) ......... $1,847 $(1,317) $ 530 $(58) $ – $472
Repurchase agreements ..... 948 – 948 (40) (908) –
Securities loaned ............. 47 – 47 – (46) 1
Total ....................... $2,842 $(1,317) $1,525 $(98) $ (954) $473
December 31, 2013
Derivative liabilities(d) ......... $1,598 $(1,192) $ 406 $(21) $ – $385
Repurchase agreements ..... 2,059 – 2,059 (59) (2,000) –
Securities loaned ............. –– – –––
Total ....................... $3,657 $(1,192) $2,465 $(80) $(2,000) $385
(a) Includes $705 million and $717 million of cash collateral related receivables that were netted against derivative liabilities at December 31, 2014 and 2013, respectively.
(b) For derivative liabilities this includes any derivative asset fair values that could be offset in the event of counterparty default; for repurchase agreements this includes any reverse repurchase
agreement receivables that could be offset in the event of counterparty default; for securities loaned this includes any securities borrowed receivables that could be offset in the event of
counterparty default.
(c) Includes the fair value of securities pledged by the Company to the counterparty. These securities are included on the Consolidated Balance Sheet unless the Company defaults.
(d) Excludes $342 million and $119 million of derivative liabilities centrally cleared or otherwise not subject to netting arrangements at December 31, 2014 and 2013, respectively.
NOTE 22 FAIR VALUES OF ASSETS AND LIABILITIES
The Company uses fair value measurements for the initial
recording of certain assets and liabilities, periodic
remeasurement of certain assets and liabilities, and
disclosures. Derivatives, trading and available-for-sale
investment securities, MSRs and substantially all MLHFS are
recorded at fair value on a recurring basis. Additionally, from
time to time, the Company may be required to record at fair
value other assets on a nonrecurring basis, such as loans
held for sale, loans held for investment and certain other
assets. These nonrecurring fair value adjustments typically
involve application of lower-of-cost-or-fair value accounting
or impairment write-downs of individual assets.
132