U.S. Bancorp (USB) 10-K 26 Feb 10 2009 FY Annual report Financial data

Document and Company Informatio

Document and Company Information (USD $)
In Billions, except Share data	12 Months Ended Dec. 31, 2009	Jan. 31, 2010	Jun. 30, 2009
Document and Company Information [Abstract]
Entity Registrant Name	US BANCORP \DE\
Entity Central Index Key	0000036104
Document Type	10-K
Document Period End Date	2009-12-31
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	Yes
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Entity Public Float			34.3
Entity Common Stock Shares Outstanding (actual number of shares)		1,913,361,569

Consolidated Balance Sheet

Consolidated Balance Sheet (USD $)
In Millions	Dec. 31, 2009	Dec. 31, 2008
Assets
Cash and due from banks	$6,206	$6,859
Investment securities
Held-to-maturity (fair value $48 and $54, respectively)	47	53
Available-for-sale	44,721	39,468
Loans held for sale (included $4,327 and $2,728 of mortgage loans carried at fair value, respectively)	4,772	3,210
Loans
Commercial	48,792	56,618
Commercial real estate	34,093	33,213
Residential mortgages	26,056	23,580
Retail	63,955	60,368
Total loans, excluding covered assets	172,896	173,779
Covered assets	22,512	11,450
Total loans	195,408	185,229
Less allowance for loan losses	(5,079)	(3,514)
Net loans	190,329	181,715
Premises and equipment	2,263	1,790
Goodwill	9,011	8,571
Other intangible assets	3,406	2,834
Other assets	20,421	21,412
Total assets	281,176	265,912
Deposits
Noninterest-bearing	38,186	37,494
Interest-bearing	115,135	85,886
Time deposits greater than $100,000	29,921	35,970
Total deposits	183,242	159,350
Short-term borrowings	31,312	33,983
Long-term debt	32,580	38,359
Other liabilities	7,381	7,187
Total liabilities	254,515	238,879
Shareholders' equity
Preferred stock	1,500	7,931
Common stock, par value $0.01 a share - authorized: 4,000,000,000 shares; issued: 2009 - 2,125,725,742 shares and 2008 - 1,972,643,007 shares	21	20
Capital surplus	8,319	5,830
Retained earnings	24,116	22,541
Less cost of common stock in treasury: 2009 - 212,786,937 shares; 2008 - 217,610,679 shares	(6,509)	(6,659)
Accumulated other comprehensive income (loss)	(1,484)	(3,363)
Total U.S. Bancorp shareholders' equity	25,963	26,300
Noncontrolling interests	698	733
Total equity	26,661	27,033
Total liabilities and equity	$281,176	$265,912

Consolidated Balance Sheet (Par

Consolidated Balance Sheet (Parenthetical) (USD $)
In Millions, except Share data	Dec. 31, 2009	Dec. 31, 2008
Investment securities
Held-to-maturity, fair value	$48	$54
Mortgage loans, carried at fair value	$4,327	$2,728
Shareholders' equity
Common stock, par value	0.01	0.01
Common stock, shares authorized (actual number of shares)	4,000,000,000	4,000,000,000
Common stock, shares issued (actual number of shares)	2,125,725,742	1,972,643,007
Treasury stock, shares (actual number of shares)	212,786,937	217,610,679

Consolidated Statement of Incom

Consolidated Statement of Income (USD $)
In Millions, except Per Share data	12 Months Ended Dec. 31, 2009	12 Months Ended Dec. 31, 2008	12 Months Ended Dec. 31, 2007
Interest Income
Loans	$9,564	$10,051	$10,627
Loans held for sale	277	227	277
Investment securities	1,606	1,984	2,095
Other interest income	91	156	137
Total interest income	11,538	12,418	13,136
Interest Expense
Deposits	1,202	1,881	2,754
Short-term borrowings	539	1,066	1,433
Long-term debt	1,279	1,739	2,260
Total interest expense	3,020	4,686	6,447
Net interest income	8,518	7,732	6,689
Provision for credit losses	5,557	3,096	792
Net interest income after provision for credit losses	2,961	4,636	5,897
Noninterest Income
Credit and debit card revenue	1,055	1,039	958
Corporate payment products revenue	669	671	638
Merchant processing services	1,148	1,151	1,108
ATM processing services	410	366	327
Trust and investment management fees	1,168	1,314	1,339
Deposit service charges	970	1,081	1,077
Treasury management fees	552	517	472
Commercial products revenue	615	492	433
Mortgage banking revenue	1,035	270	259
Investment products fees and commissions	109	147	146
Securities gains (losses), net
Realized gains (losses), net	147	42	15
Total other-than-temporarily impairment	(1,000)	(1,020)	0
Portion of other-than-temporary impairment recognized in other comprehensive income	402	0	0
Total securities gains (losses), net	(451)	(978)	15
Other	672	741	524
Total noninterest income	7,952	6,811	7,296
Noninterest Expense
Compensation	3,135	3,039	2,640
Employee benefits	574	515	494
Net occupancy and equipment	836	781	738
Professional services	255	240	233
Marketing and business development	378	310	260
Technology and communications	673	598	561
Postage, printing and supplies	288	294	283
Other intangibles	387	355	376
Other	1,755	1,216	1,322
Total noninterest expense	8,281	7,348	6,907
Income before income taxes	2,632	4,099	6,286
Applicable income taxes	395	1,087	1,883
Net income	2,237	3,012	4,403
Net income attributable to noncontrolling interests	(32)	(66)	(79)
Net income attributable to U.S. Bancorp	2,205	2,946	4,324
Net income applicable to U.S. Bancorp common shareholders	$1,803	$2,819	$4,258
Earnings per common share	0.97	1.62	2.45
Diluted earnings per common share	0.97	1.61	2.42
Dividends declared per common share	0.2	1.7	1.625
Average common shares outstanding	1,851	1,742	1,735
Average diluted common shares outstanding	1,859	1,756	1,756

Consolidated Statement of Share

Consolidated Statement of Shareholders Equity (USD $)
In Millions	Total U.S. Bancorp Shareholders' Equity	Common Stock	Preferred Stock	Capital Surplus	Retained Earnings	Treasury Stock	Other Comprehensive Income (Loss)	Noncontrolling Interests	Total
Balance, shares at Dec. 31, 2006		1,765
Balance at Dec. 31, 2006	$21,197	$20	$1,000	$5,762	$21,242	($6,091)	($736)	$722	$21,919
Net income	4,324				4,324			79	4,403
Changes in unrealized gains and losses on securities available-for-sale	(482)						(482)		(482)
Unrealized gain (loss) on derivative hedges	(299)						(299)		(299)
Foreign currency translation	8						8		8
Reclassification for realized losses	96						96		96
Change in retirement obligation	352						352		352
Income taxes	125						125		125
Total comprehensive income (loss)	4,124							79	4,203
Preferred stock dividends and discount accretion	(60)				(60)				(60)
Common stock dividends	(2,813)				(2,813)				(2,813)
Issuance of common and treasury stock	582			(45)		627			582
Issuance of common and treasury stock, shares		21
Purchase of treasury stock	(2,011)					(2,011)			(2,011)
Purchase of treasury stock, shares		(58)
Net other changes in noncontrolling interests								(21)	(21)
Stock option and restricted stock grants	32			32					32
Shares reserved to meet deferred compensation obligations	(5)					(5)			(5)
Balance at Dec. 31, 2007	21,046	20	1,000	5,749	22,693	(7,480)	(936)	780	21,826
Balance, shares at Dec. 31, 2007		1,728
Change in accounting principle	(1)				(4)		3		(1)
Net income	2,946				2,946			66	3,012
Changes in unrealized gains and losses on securities available-for-sale	(2,729)						(2,729)		(2,729)
Unrealized gain (loss) on derivative hedges	(722)						(722)		(722)
Realized loss on derivative hedges	(15)						(15)		(15)
Foreign currency translation	(117)						(117)		(117)
Reclassification for realized losses	1,020						1,020		1,020
Change in retirement obligation	(1,362)						(1,362)		(1,362)
Income taxes	1,495						1,495		1,495
Total comprehensive income (loss)	516							66	582
Preferred stock dividends and discount accretion	(119)		4		(123)				(119)
Common stock dividends	(2,971)				(2,971)				(2,971)
Issuance of preferred stock and related warrant	7,090		6,927	163					7,090
Issuance of common and treasury stock	834			(83)		917			834
Issuance of common and treasury stock, shares		29
Purchase of treasury stock	(91)					(91)			(91)
Purchase of treasury stock, shares		(2)
Net other changes in noncontrolling interests								(113)	(113)
Stock option and restricted stock grants	1			1					1
Shares reserved to meet deferred compensation obligations	(5)					(5)			(5)
Balance at Dec. 31, 2008	26,300	20	7,931	5,830	22,541	(6,659)	(3,363)	733	27,033
Balance, shares at Dec. 31, 2008		1,755
Change in accounting principle	0				141		(141)		0
Net income	2,205				2,205			32	2,237
Changes in unrealized gains and losses on securities available-for-sale	2,359						2,359		2,359
Other-than-temporary impairment not recognized in earnings on securities available-for-sale	(402)						(402)		(402)
Unrealized gain (loss) on derivative hedges	516						516		516
Foreign currency translation	40						40		40
Reclassification for realized losses	456						456		456
Change in retirement obligation	290						290		290
Income taxes	(1,239)						(1,239)		(1,239)
Total comprehensive income (loss)	4,225							32	4,257
Redemption of preferred stock	(6,599)		(6,599)						(6,599)
Repurchase of common stock warrant	(139)			(139)					(139)
Preferred stock dividends and discount accretion	(228)		168		(396)				(228)
Common stock dividends	(375)				(375)				(375)
Issuance of common and treasury stock	2,708	1		2,553		154			2,708
Issuance of common and treasury stock, shares		158
Purchase of treasury stock	(4)					(4)			(4)
Net other changes in noncontrolling interests	0							(5)	(5)
Distributions to noncontrolling interests	0							(62)	(62)
Stock option and restricted stock grants	75			75					75
Balance at Dec. 31, 2009	$25,963	$21	$1,500	$8,319	$24,116	($6,509)	$1,484	$698	$26,661
Balance, shares at Dec. 31, 2009		1,913

Consolidated Statement of Cash

Consolidated Statement of Cash Flows (USD $)
In Millions	12 Months Ended Dec. 31, 2009	12 Months Ended Dec. 31, 2008	12 Months Ended Dec. 31, 2007
Operating Activities
Net income attributable to U.S. Bancorp	$2,205	$2,946	$4,324
Adjustments to reconcile net income to net cash provided by operating activities
Provision for credit losses	5,557	3,096	792
Depreciation and amortization of premises and equipment	220	218	243
Amortization of intangibles	387	355	376
Provision for deferred income taxes	(545)	(1,045)	(97)
Gain on sales of securities and other assets, net	(1,571)	(804)	(570)
Loans originated for sale in the secondary market, net of repayments	(52,720)	(32,563)	(27,395)
Proceeds from sales of loans held for sale	51,915	32,440	25,389
Other, net	2,152	664	(158)
Net cash provided by operating activities	7,600	5,307	2,904
Investing Activities
Proceeds from sales of available-for-sale investment securities	5,784	2,134	2,135
Proceeds from maturities of investment securities	7,318	5,722	4,211
Purchases of investment securities	(15,124)	(6,075)	(9,816)
Net increase in loans outstanding	(106)	(14,776)	(8,015)
Proceeds from sales of loans	2,741	123	421
Purchases of loans	(4,332)	(3,577)	(2,599)
Acquisitions, net of cash acquired	3,074	1,483	(111)
Other, net	(74)	(1,353)	(1,367)
Net cash used in investing activities	(719)	(16,319)	(15,141)
Financing Activities
Net increase in deposits	7,949	13,139	6,255
Net increase (decrease) in short-term borrowings	(4,448)	(891)	5,069
Proceeds from issuance of long-term debt	6,040	8,534	22,395
Principal payments or redemption of long-term debt	(11,740)	(16,546)	(16,836)
Proceeds from issuance of preferred stock	0	7,090	0
Proceeds from issuance of common stock	2,703	688	427
Redemption of preferred stock	(6,599)	0	0
Repurchase of common stock	0	0	(1,983)
Repurchase of common stock warrant	(139)	0	0
Cash dividends paid on preferred stock	(275)	(68)	(60)
Cash dividends paid on common stock	(1,025)	(2,959)	(2,785)
Net cash provided by (used in) financing activities	(7,534)	8,987	12,482
Change in cash and due from banks	(653)	(2,025)	245
Cash and due from banks at beginning of year	6,859	8,884	8,639
Cash and due from banks at end of year	6,206	6,859	8,884
Supplemental Cash Flow Disclosures
Cash paid for income taxes	344	1,965	1,878
Cash paid for interest	3,153	4,891	6,360
Net noncash transfers to foreclosed property	600	307	180
Acquisitions
Assets acquired	17,212	19,474	635
Liabilities assumed	(17,870)	(18,824)	(393)
Net	($658)	$650	$242

Significant Accounting Policies

Significant Accounting Policies
	12 Months Ended Dec. 31, 2009 USD / shares
Significant Accounting Policies [Abstract]
SIGNIFICANT ACCOUNTING POLICIES	Note1Significant Accounting Policies U.S.Bancorp is a multi-state financial services holding company headquartered in Minneapolis, Minnesota. U.S. Bancorp and its subsidiaries (the Company) provide a full range of financial services including lending and depository services through banking offices principally in 24states. The Company also engages in credit card, merchant, and ATM processing, mortgage banking, insurance, trust and investment management, brokerage, and leasing activities principally in domestic markets. Basis of Presentation The consolidated financial statements include the accounts of the Company and its subsidiaries and all variable interest entities (VIEs) for which the Company is the primary beneficiary. Consolidation eliminates all significant intercompany accounts and transactions. Certain items in prior periods have been reclassified to conform to the current presentation. Uses of Estimates The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual experience could differ from those estimates. Business Segments Within the Company, financial performance is measured by major lines of business based on the products and services provided to customers through its distribution channels. The Company has five reportable operating segments: Wholesale Banking Wholesale Banking offers lending, equipment finance and small-ticket leasing, depository, treasury management, capital markets, foreign exchange, international trade services and other financial services to middle market, large corporate, commercial real estate, financial institution and public sector clients. Consumer Banking Consumer Banking delivers products and services through banking offices, telephone servicing and sales, on-line services, direct mail and ATM processing. It encompasses community banking, metropolitan banking, in-store banking, small business banking, consumer lending, mortgage banking, consumer finance, workplace banking, student banking and 24-hour banking. Wealth Management Securities Services Wealth Management Securities Services provides trust, private banking, financial advisory, investment management, retail brokerage, insurance, custody and mutual fund services through five businesses: Wealth Management, Corporate Trust, FAF Advisors, Institutional Trust Custody and FundServices. Payment Services Payment Services includes consumer and business credit cards, stored-value cards, debit cards, corporate and purchasing card services, consumer lines of credit and merchant processing. Treasury and Corporate Support Treasury and Corporate Support includes the Companys investment portfolios, funding, recently acquired assets and assumed liabilities prior to assignment to business lines, capital management, asset securitization, interest rate risk management, the net effect of transfer pricing related to average balances and the residual aggregate of those expenses associated with corporate activities that are

Accounting Changes

Accounting Changes
	12 Months Ended Dec. 31, 2009 USD / shares
Accounting Changes [Abstract]
ACCOUNTING CHANGES	Note2Accounting Changes Fair Value Measurements On April9, 2009, the Financial Accounting Standards Board (FASB) issued new accounting guidance, which the Company adopted effective January1, 2009, for determining fair value for an asset or liability if there has been a significant decrease in the volume and level of activity in relation to normal market activity. In that circumstance, transactions or quoted prices may not be determinative of fair value. Significant adjustments may be necessary to quoted prices or alternative valuation techniques may be required in order to determine the fair value of the asset or liability under current market conditions. The adoption of this guidance resulted in the use of valuation techniques other than quoted prices for the valuation of the Companys non-agency mortgage-backed securities, but the effect was not significant. For additional information on the fair value of certain financial assets and liabilities, refer to Note21. Other-Than-Temporary-Impairments On April9, 2009, the FASB issued new accounting guidance, which the Company adopted effective January1, 2009, for the measurement and recognition of other-than-temporary impairment for debt securities. If an entity does not intend to sell, and it is more likely than not that the entity will not be required to sell, a debt security before recovery of its cost basis, other-than-temporary impairment should be separated into (a)the amount representing credit loss and (b)the amount related to all other factors. The amount of other-than-temporary impairment related to credit loss is recognized in earnings and other-than-temporary impairment related to other factors is recognized in other comprehensive income (loss). To determine the amount related to credit loss, the Company applies a methodology similar to that used for accounting by creditors for impairment of loans. The Companys adoption of this guidance resulted in the recognition of a cumulative-effect adjustment to increase January1, 2009 retained earnings, with a corresponding adjustment to accumulated other comprehensive income (loss), of $141million. For additional information on investment securities, refer to Note5. Business Combinations Effective January1, 2009, the Company adopted accounting guidance issued by the FASB which established principles and requirements for the acquirer in a business combination, including the recognition and measurement of the identifiable assets acquired, the liabilities assumed and any noncontrolling interest in the acquired entity as of the acquisition date; the recognition and measurement of the goodwill acquired in the business combination or gain from a bargain purchase as of the acquisition date; and additional disclosures related to the nature and financial effects of the business combination. Under this guidance, nearly all acquired assets and liabilities assumed are recorded at fair value at the acquisition date, including loans. The recognition at the acquisition date of an allowance for loan losses on acquired loans was eliminated, as credit-related factors are now incorporated directly into the fair value of the loans. Other signi

Business Combinations

Business Combinations
	12 Months Ended Dec. 31, 2009 USD / shares
Business Combinations [Abstract]
BUSINESS COMBINATIONS	Note3Business Combinations On October30, 2009, the Company acquired the banking operations of First Bank of Oak Park Corporation (FBOP) in an FDIC assisted transaction. The Company acquired approximately $18.0billion of assets and assumed approximately $17.4billion of liabilities, including $15.4billion of deposits. The Company entered into separate loss sharing agreements with the FDIC providing for specified credit loss protection for substantially all acquired loans, foreclosed real estate and selected investment securities. Under the terms of the loss sharing agreements, the FDIC will reimburse the Company for 80percent of the first $3.5billion of losses on those assets and 95percent of losses beyond that amount. At the acquisition date, the Company estimated the FBOP assets would incur approximately $2.8billion of losses, of which $1.9billion would be reimbursable under the loss sharing agreements as losses are realized in future periods. The loss sharing agreements provide for coverage on losses for ten years on single family residential mortgages, and five years on commercial and other consumer assets. The Company recorded the acquired assets and liabilities at their estimated fair values at the acquisition date. The estimated fair value for loans reflected expected credit losses at the acquisition date and related reimbursement under the loss sharing agreements. As a result, the Company will only recognize a provision for credit losses and charge-offs on the acquired loans for any further credit deterioration, net of any expected reimbursement under the loss sharing agreements. On November21, 2008, the Company acquired the banking operations of Downey Savings Loan Association, F.A. (Downey), and PFF Bank Trust (PFF) from the FDIC. The Company acquired approximately $17.4billion of assets and assumed approximately $15.8billion of liabilities. In connection with these acquisitions, the Company entered into loss sharing agreements with the FDIC providing for specified credit loss and asset yield protection for all single family residential mortgages and credit loss protection for a significant portion of commercial and commercial real estate loans and foreclosed real estate. Under the terms of the loss sharing agreements, the Company will incur the first $1.6billion of losses on those assets. The FDIC will reimburse the Company for 80percent of the next $3.1billion of losses and 95percent of losses beyond that amount. At the acquisition date, the Company estimated the Downey and PFF assets would incur approximately $4.7billion of losses, of which $2.4billion would be reimbursable under the loss sharing agreements. As of December31, 2009, the Company had received loss reimbursement of $144million and estimated it will ultimately receive an additional $2.0billion from the FDIC under the loss sharing agreements. At the acquisition date, the Company identified the acquired non-revolving loans experiencing credit deterioration, representing the majority of assets acquired, and recorded those assets at their estimated fair value, reflecting expected credit losses and the related reimbursement under loss sharing agreements. As a

Restrictions on Cash and Due fr

Restrictions on Cash and Due from Banks
	12 Months Ended Dec. 31, 2009 USD / shares
Restrictions on Cash and Due from Banks [Abstract]
RESTRICTIONS ON CASH AND DUE FROM BANKS	Note4Restrictions on Cash and Due from Banks The Federal Reserve Bank requires bank subsidiaries to maintain minimum average reserve balances. The amount of those reserve balances were approximately $1.2billion and $.9billion at December31, 2009 and 2008, respectively.

Investment Securities

Investment Securities
	12 Months Ended Dec. 31, 2009 USD / shares
Investment Securities [Abstract]
INVESTMENT SECURITIES	Note5Investment Securities The amortized cost, other-than-temporary impairment recorded in other comprehensive income, gross unrealized holding gains and losses, and fair value of held-to-maturity and available-for-sale securities at December 31 were as follows: 2009 2008 Unrealized Losses Amortized Unrealized Other-than- Fair Amortized Unrealized Unrealized Fair (Dollars in Millions) Cost Gains Temporary Other Value Cost Gains Losses Value Held-to-maturity(a) Agency residential mortgage-backed securities $ 4 $ $ $ $ 4 $ 5 $ $ $ 5 Obligations of state and political subdivisions 32 2 (1 ) 33 38 2 (1 ) 39 Other debt securities 11 11 10 10 Total held-to-maturity $ 47 $ 2 $ $ (1 ) $ 48 $ 53 $ 2 $ (1 ) $ 54 Available-for-sale(b) U.S. Treasury and agencies $ 3,415 $ 10 $ $ (21 ) $ 3,404 $ 664 $ 18 $ $ 682 Mortgage-backed securities Residential Agency 29,288 501 (47 ) 29,742 26,512 426 (410 ) 26,528 Non-agency Prime(c) 1,624 8 (110 ) (93 ) 1,429 3,160 (729 ) 2,431 Non-prime 1,359 11 (297 ) (105 ) 968 1,574 3 (423 ) 1,154 Commercial 14 (1 ) 13 17 17 Asset-backed securities Collateralized debt obligations/Collateralized loan obligations 199 11 (5 ) 205 101 1 (11 ) 91 Other 360 12 (5 )

Loans and Allowance for Credit

Loans and Allowance for Credit Losses
	12 Months Ended Dec. 31, 2009 USD / shares
Loans and Allowance for Credit Losses [Abstract]
LOANS AND ALLOWANCE FOR CREDIT LOSSES	Note6Loans and Allowance for Credit Losses The composition of the loan portfolio at December 31 was as follows: (Dollars in millions) 2009 2008 Commercial Commercial $ 42,255 $ 49,759 Lease financing 6,537 6,859 Total commercial 48,792 56,618 Commercial Real Estate Commercial mortgages 25,306 23,434 Construction and development 8,787 9,779 Total commercial real estate 34,093 33,213 Residential Mortgages Residential mortgages 20,581 18,232 Home equity loans, first liens 5,475 5,348 Total residential mortgages 26,056 23,580 Retail Credit card 16,814 13,520 Retail leasing 4,568 5,126 Home equity and second mortgages 19,439 19,177 Other retail Revolving credit 3,506 3,205 Installment 5,455 5,525 Automobile 9,544 9,212 Student 4,629 4,603 Total other retail 23,134 22,545 Total retail 63,955 60,368 Total loans, excluding covered assets 172,896 173,779 Covered Assets 22,512 11,450 Total loans $ 195,408 $ 185,229 The Company had loans of $55.6billion at December31, 2009, and $45.4billion at December31, 2008, pledged at the Federal Home Loan Bank (FHLB), and loans of $44.2billion at December31, 2009, and $47.2billion at December31, 2008, pledged at the Federal Reserve Bank. The Company primarily lends to borrowers in the 24states in which it has banking offices. Collateral for commercial loans may included marketable securities, accounts receivable, inventory and equipment. For details of the Companys commercial portfolio by industry group and geography as of December31, 2009 and 2008, see Table 7 included in Managements Discussion and Analysis which is incorporated by reference into these Notes to Consolidated Financial Statements. For detail of the Companys commercial real estate portfolio by property type and geography as of December31, 2009, and 2008, see Table 8 included in Managements Discussion and Analysis which is incorporated by reference into these Notes to Consolidated Financial Statements. Such loans are collateralized by the related property. Originated loans are presented net of unearned interest and deferred fees and costs, which amounted to $1.3billion and $1.5billion at December31, 2009 and 2008, respectively. In accordance with applicable authoritative accounting guidance effective for the Company January1, 2009, all purchased loans and related indemnification assets are recorded at fair value at the date of pu

Leases

Leases
	12 Months Ended Dec. 31, 2009 USD / shares
Leases [Abstract]
LEASES	Note7Leases The components of the net investment in sales-type and direct financing leases at December 31 were as follows: (Dollars in Millions) 2009 2008 Aggregate future minimum lease payments to be received $ 11,797 $ 12,712 Unguaranteed residual values accruing to the lessors benefit 322 339 Unearned income (1,539 ) (1,693 ) Initial direct costs 218 250 Total net investment in sales-type and direct financing leases(a) $ 10,798 $ 11,608 (a) The accumulated allowance for uncollectible minimum lease payments was $198 million and $224million at December31, 2009 and 2008, respectively. The minimum future lease payments to be received from sales-type and direct financing leases were as follows at December31, 2009: (Dollars in Millions) 2010 $ 3,200 2011 3,288 2012 2,967 2013 1,498 2014 522 Thereafter 322

Accounting for Transfers and Se

Accounting for Transfers and Servicing of Financial Assets and Variable Interest Entities
	12 Months Ended Dec. 31, 2009 USD / shares
Accounting for Transfers and Servicing of Financial Assets and Variable Interest Entities [Abstract]
ACCOUNTING FOR TRANSFERS AND SERVICING OF FINANCIAL ASSETS AND VARIABLE INTEREST ENTITIES	Note8Accounting for Transfers and Servicing of Financial Assets and Variable Interest Entities When the Company sells financial assets, it may retain servicing rights and/or other beneficial interests in the transferred financial assets. The gain or loss on sale depends, in part, on the previous carrying amount of the transferred financial assets and the consideration other than beneficial interests in the transferred assets received in exchange. Upon transfer, any servicing assets are initially recognized at fair value. The remaining carrying amount of the transferred financial asset is allocated between the assets sold and any interests that continue to be held by the Company based on the relative fair values as of the date of transfer. The Company is involved in various entities that are considered to be variable interest entities (VIEs) as defined by applicable authoritative accounting guidance. Generally, a VIE is a corporation, partnership, trust or any other legal structure that does not have equity investors with substantive voting rights or has equity investors that do not have sufficient equity at risk for the entity to independently finance its activities. The Companys investments in VIEs primarily represent private investment funds or partnerships that make equity investments, provide debt financing or support community-based investments in affordable housing, development entities that provide capital for communities located in low-income districts and for historic rehabilitation projects that may enable the Company to ensure regulatory compliance with the Community Reinvestment Act. In addition, the Company sponsors entities to which it transfers a pool of tax credit investments. These entities are consolidated by the Company as it continues to absorb the majority of the entities expected losses. The Company expects to consolidate additional entities and deconsolidate other entities beginning in 2010 as a result of a change in accounting rules for VIEs. The Company sponsors an off-balance sheet conduit to which it transferred high-grade investment securities in prior years, initially funded by the conduits issuance of commercial paper. The conduit held assets of $.6billion at December31, 2009, compared with $.8billion at December31, 2008. During 2008, the conduit ceased issuing commercial paper and began to draw upon a Company-provided liquidity facility to replace outstanding commercial paper as it matured. At December31, 2009, the amount advanced to the conduit under the liquidity facility was $.7billion, compared with $.9billion at December31, 2008, and was recorded on the Companys balance sheet in commercial loans. Under accounting rules applicable through 2009, the Company considered the conduit to be a VIE. The Company was not the primary beneficiary of the conduit as it did not absorb the majority of the variability of the conduits cash flows or fair value. The Company will consolidate the conduit beginning in 2010 as a result of a change in the accounting rules related to VIEs. The Company consolidates VIEs in which it is the primary beneficiary. At December31, 2009, approximately $510million of

Premises and Equipment

Premises and Equipment
	12 Months Ended Dec. 31, 2009 USD / shares
Premises and Equipment [Abstract]
PREMISES AND EQUIPMENT	Note9Premises and Equipment Premises and equipment at December 31 consisted of the following: (Dollars in Millions) 2009 2008 Land $ 460 $ 343 Buildings and improvements 2,923 2,465 Furniture, fixtures and equipment 2,643 2,487 Capitalized building and equipment leases 82 106 Construction in progress 21 91 6,129 5,492 Less accumulated depreciation and amortization (3,866 ) (3,702 ) Total $ 2,263 $ 1,790

Mortgage Servicing Rights

Mortgage Servicing Rights
	12 Months Ended Dec. 31, 2009 USD / shares
Mortgage Servicing Rights [Abstract]
MORTGAGE SERVICING RIGHTS	Note10Mortgage Servicing Rights The Company serviced $150.8billion of residential mortgage loans for others at December31, 2009, and $120.3billion at December31, 2008. The net impact included in mortgage banking revenue of assumption changes on the fair value of MSRs and fair value changes of derivatives used to offset MSR value changes was a net gain of $147million, for the year ended December31, 2009, compared with net losses of $122million and $35million the years ended December31, 2008 and 2007, respectively. Loan servicing fees, not including valuation changes included in mortgage banking revenue, were $512million, $404million and $353million for the years ended December31, 2009, 2008 and 2007, respectively. Changes in fair value of capitalized MSRs are summarized as follows: Year Ended December31 (Dollars in Millions) 2009 2008 2007 Balance at beginning of period $ 1,194 $ 1,462 $ 1,427 Rights purchased 101 52 14 Rights capitalized 848 515 440 Rights sold (130) Changes in fair value of MSRs Due to change in valuation assumptions(a) (15 ) (592) (102) Other changes in fair value(b) (379 ) (243) (187) Balance at end of period $ 1,749 $ 1,194 $ 1,462 (a)Principally reflects changes in discount rates and prepayment speed assumptions, primarily arising from interest rate changes. (b)Primarily represents changes due to collection/realization of expected cash flows over time (decay). The estimated sensitivity to changes in interest rates of the fair value of the MSRs portfolio and the related derivative instruments at December31, 2009, was as follows: Down Scenario Up Scenario (Dollars in Millions) 50bps 25bps 25bps 50bps Net fair value $ (15 ) $ (5 ) $ 2 $ 1 The fair value of MSRs and their sensitivity to changes in interest rates is influenced by the mix of the servicing portfolio and characteristics of each segment of the portfolio. The Companys servicing portfolio consists of the distinct portfolios of government-insured mortgages, conventional mortgages and Mortgage Revenue Bond Programs (MRBP). The servicing portfolios are predominantly comprised of fixed-rate agency loans with limited adjustable-rate or jumbo mortgage loans. The MRBP division specializes in servicing loans made under state and local housing authority programs. These programs provide mortgages to low-income and moderate-income borrowers and are generally government-insured programs with a favorable rate subsidy, down payment and/or closing cost assistance. Mortgage loans originated as part of government agency and state loans programs tend to experience slower prepayment rates and better cash flows than conventional mortgage loans. A summary of the Companys MSR

Intangible Assets

Intangible Assets
	12 Months Ended Dec. 31, 2009 USD / shares
Intangible Assets [Abstract]
INTANGIBLE ASSETS	Note11Intangible Assets Intangible assets consisted of the following: Estimated Amortization Balance December31 (Dollars in Millions) Life (a) Method (b) 2009 2008 Goodwill (c) $ 9,011 $ 8,571 Merchant processing contracts 9years/8years SL/AC 473 564 Core deposit benefits 11years/5years SL/AC 383 376 Mortgage servicing rights (c) 1,749 1,194 Trust relationships 15years/7years SL/AC 222 277 Other identified intangibles 8years/5years SL/AC 579 423 Total $ 12,417 $ 11,405 (a) Estimated life represents the amortization period for assets subject to the straight line method and the weighted average amortization period for intangibles subject to accelerated methods. If more than one amortization method is used for a category, the estimated life for each method is calculated and reported separately. (b) Amortization methods:SL = straight line method AC = accelerated methods generally based on cash flows (c) Goodwill is evaluated for impairment, but not amortized. Mortgage servicing rights are recorded at fair value, and are not amortized. Aggregate amortization expense consisted of the following: Year Ended December31 (Dollars in Millions) 2009 2008 2007 Merchant processing contracts $ 117 $ 136 $ 154 Core deposit benefits 103 67 68 Trust relationships 62 68 76 Other identified intangibles 105 84 78 Total $ 387 $ 355 $ 376 The estimated amortization expense for the next five years is as follows: (Dollars in Millions) 2010 $ 361 2011 281 2012 226 2013 183 2014 142 The following table reflects the changes in the carrying value of goodwill for the years ended December31, 2009 and 2008: Wholesale Consumer Wealth Payment Treasury and Consolidated (Dollars in Millions) Banking Banking Management Services Corporate Support Company Balance at December31, 2007 $ 1,330 $ 2,420 $ 1,564 $ 2,333 $ $ 7,647 Goodwill acquired 145 813 (2 ) 12 968 Other(a) (44 ) (44 ) Balance at December31, 2008 $ 1,475 $ 3,233 $ 1,562 $ 2,301

Short-Term Borrowings

Short-Term Borrowings
	12 Months Ended Dec. 31, 2009 USD / shares
Short-Term Borrowings [Abstract]
SHORT-TERM BORROWINGS	Note12Short-Term Borrowings (a) The following table is a summary of short-term borrowings for the last three years: 2009 2008 2007 (Dollars in Millions) Amount Rate Amount Rate Amount Rate At year-end Federal funds purchased $ 1,329 .11 % $ 2,369 .17 % $ 2,817 1.88 % Securities sold under agreements to repurchase 8,866 2.82 9,493 2.65 10,541 4.11 Commercial paper 14,608 .17 10,061 .22 11,229 4.17 Other short-term borrowings 6,509 .48 12,060 1.87 7,783 5.04 Total $ 31,312 .98 % $ 33,983 1.48 % $ 32,370 4.16 % Average for the year Federal funds purchased(b) $ 2,457 8.22 % $ 3,834 5.19 % $ 2,731 9.63 % Securities sold under agreements to repurchase 8,915 2.84 11,982 3.07 10,939 4.53 Commercial paper 10,924 .32 10,532 1.91 9,265 4.75 Other short-term borrowings 6,853 .89 11,889 3.16 5,990 5.54 Total $ 29,149 1.89 % $ 38,237 2.99 % $ 28,925 5.29 % Maximum month-end balance Federal funds purchased $ 6,352 $ 9,681 $ 4,419 Securities sold under agreements to repurchase 9,154 15,198 12,181 Commercial paper 14,608 11,440 11,229 Other short-term borrowings 9,550 17,642 7,783 (a)Interest and rates are presented on a fully taxable-equivalent basis utilizing a tax rate of 35percent. (b)Average federal funds purchased rates include compensation expense for corporate card and corporate trust balances.

Long-Term Debt

Long-Term Debt
	12 Months Ended Dec. 31, 2009 USD / shares
Long-Term Debt [Abstract]
LONG-TERM DEBT	Note13Long-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 2009 2008 U.S. Bancorp (Parent Company) Subordinated notes Fixed 7.50% 2026 $ 199 $ 199 Convertible senior debentures Floating % 2035 24 24 Floating % 2035 447 447 Floating % 2036 64 64 Floating % 2037 21 75 Medium-term notes Fixed 1.75%-4.50% 2010-2014 4,880 1,350 Floating .28%-.68% 2010-2012 4,435 4,435 Junior subordinated debentures Fixed 5.54%-10.20% 2031-2067 4,559 4,058 Capitalized lease obligations, mortgage indebtedness and other(b) (91 ) 179 Subtotal 14,538 10,831 Subsidiaries Subordinated notes Fixed 7.125% 2009 500 Fixed 6.375% 2011 1,500 1,500 Fixed 6.30% 2014 963 963 Fixed 4.95% 2014 1,000 1,000 Fixed 4.80% 2015 500 500 Fixed 3.80% 2015 369 369 Fixed 4.375% 2017 1,348 1,348 Floating .56% 2014 550 550 Federal Home Loan Bank advances Fixed .50%-8.25% 2010-2036 4,234 6,415 Floating .18%-.95% 2010-2017 6,833 10,373 Bank notes Fixed 5.92% 2012 199 1,286 Floating .004%-.605% 2010-2048 213 2,525 Capitalized lease obligations, mortgage indebtedness and other(b) 333 199 Subtotal 18,042 27,528 Total $ 32,580 $ 38,359 (a) Weighted-average interest rates of medium-term notes, Federal Home Loan Bank advances and bank notes were 1.87percent, 1.84percent and 2.94percent, respectively. (b) Other includes debt issuance fees and unrealized gains and losses and deferred amounts relating to derivative instru

Junior Subordinated Debentures

Junior Subordinated Debentures
	12 Months Ended Dec. 31, 2009 USD / shares
Junior Subordinated Debentures [Abstract]
JUNIOR SUBORDINATED DEBENTURES	Note14Junior Subordinated Debentures As of December31, 2009, the Company sponsored, and wholly owned 100 percent of the common equity of, ten unconsolidated trusts that were formed for the purpose of issuing Company-obligated mandatorily redeemable preferred securities (TrustPreferred Securities) to third-party investors and investing the proceeds from the sale of the TrustPreferred Securities solely in junior subordinated debt securities of the Company (the Debentures). The Debentures held by the trusts, which totaled $4.6billion, are the sole assets of each trust. The Companys obligations under the Debentures and related documents, taken together, constitute a full and unconditional guarantee by the Company of the obligations of the trusts. The guarantee covers the distributions and payments on liquidation or redemption of the TrustPreferred Securities, but only to the extent of funds held by the trusts. The Company has the right to redeem the Debentures in whole or in part, on or after specific dates, at a redemption price specified in the indentures plus any accrued but unpaid interest to the redemption date. The Company used the proceeds from the sales of the Debentures for general corporate purposes. In connection with the formation of USB Capital IX, the trust issued redeemable Income TrustSecurities (ITS) to third party investors, investing the proceeds in Debentures issued by the Company and entered into stock purchase contracts to purchase preferred stock to be issued by the Company in the future. Pursuant to the stock purchase contracts, the Company is required to make contract payments of .65percent, also payable semi-annually, through a specified stock purchase date expected to be April15, 2011. Prior to the specified stock purchase date, the trust is required to remarket and sell the Debentures to third party investors to generate cash proceeds to satisfy its obligation to purchase the Companys SeriesA Non-Cumulative Perpetual Preferred Stock (SeriesA Preferred Stock) pursuant to the stock purchase contracts. The SeriesA Preferred Stock, when issued pursuant to the stock purchase contracts, is expected to pay quarterly dividends equal to the greater of three-month LIBOR plus 1.02percent or 3.50percent. In connection with this transaction, the Company also entered into a replacement capital covenant which restricts the Companys rights to repurchase the ITS and to redeem or repurchase the SeriesA Preferred Stock. The following table is a summary of the Debentures included in long-term debt as of December31, 2009: Securities Debentures Earliest Issuance Trust (Dollars in Millions) Issuance Date Amount Amount Rate Type Rate Maturity Date Redemption Date USB Capital XIII December 2009 $ 500 $ 501 Fixed 6.63 December 2039 December 15, 2014 USB Capital XII February 2007 535 536 Fixed 6.30 February 2067 February 1

Shareholders Equity

Shareholders Equity
	12 Months Ended Dec. 31, 2009 USD / shares
Shareholders' Equity [Abstract]
SHAREHOLDERS' EQUITY	Note15Shareholders Equity At December31, 2009 and 2008, the Company had authority to issue 4billion shares of common stock and 50million shares of preferred stock. The Company had 1.9billion and 1.8billion shares of common stock outstanding at December31, 2009 and 2008, respectively, and had 132million shares reserved for future issuances, primarily under stock incentive plans and shares that may be issued in connection with the Companys convertible senior debentures, at December31, 2009. The number of shares issued and outstanding and the carrying amount of each outstanding series of the Companys preferred stock was as follows: 2009 2008 Shares Issued Carrying Shares Issued Carrying December31, (Dollars in Millions) and Outstanding Amount and Outstanding Amount SeriesB 40,000 $ 1,000 40,000 $ 1,000 SeriesD 20,000 500 20,000 500 SeriesE 6,599,000 6,431 Total preferred stock(a) 60,000 $ 1,500 6,659,000 $ 7,931 (a)The par value of all shares issued and outstanding at December31, 2009 and 2008, was $1.00 a share. On November14, 2008, the Company issued 6.6million shares of SeriesE Fixed Rate Cumulative Perpetual Preferred Stock (the SeriesE Preferred Stock) and a warrant to purchase 33million shares of the Companys common stock, at a price of $30.29 per common share, to the U.S.Department of the Treasury under the Capital Purchase Program of the Emergency Economic Stabilization Act of 2008 for proceeds of $6.6billion. The Company allocated $172million of the proceeds to the warrant, with the resulting discount on the SeriesE Preferred Stock being accreted over five years and reported as a reduction to income applicable to common equity over that period. On June17, 2009, the Company redeemed the SeriesE Preferred Stock. The Company included in its computation of earnings per diluted common share for the year ended December31, 2009 the impact of a deemed dividend of $154million, representing the unaccreted preferred stock discount remaining on the redemption date. On July15, 2009, the Company repurchased the warrant from the U.S.Department of the Treasury for $139million. On March27, 2006, the Company issued depositary shares representing an ownership interest in 40,000shares of SeriesB Non-Cumulative Perpetual Preferred Stock with a liquidation preference of $25,000 per share (the SeriesB Preferred Stock), and on March17, 2008, the Company issued depositary shares representing an ownership interest in 20,000shares of SeriesD Non-Cumulative Perpetual Preferred Stock with a liquidation preference of $25,000 per share (the SeriesD Preferred Stock). The SeriesB Preferred Stock and SeriesD Preferred Stock have no stated maturity and will not be subject to any sinking fund or other ob

Earnings Per Share

Earnings Per Share
	12 Months Ended Dec. 31, 2009 USD / shares
Earnings Per Share [Abstract]
EARNINGS PER SHARE	Note16Earnings Per Share The components of earnings per share were: (Dollars and Shares in Millions, Except Per Share Data) 2009 2008 2007 Net income attributable to U.S. Bancorp $ 2,205 $ 2,946 $ 4,324 Preferred dividends (228 ) (119 ) (60 ) Accretion of preferred stock discount (14 ) (4 ) Deemed dividend on preferred stock redemption (154 ) Earnings allocated to participating stock awards (6 ) (4 ) (6 ) Net income applicable to U.S. Bancorp common shareholders $ 1,803 $ 2,819 $ 4,258 Average common shares outstanding 1,851 1,742 1,735 Net effect of the exercise and assumed purchase of stock awards and conversion of outstanding convertible notes 8 14 21 Average diluted common shares outstanding 1,859 1,756 1,756 Earnings per common share $ .97 $ 1.62 $ 2.45 Diluted earnings per common share $ .97 $ 1.61 $ 2.42 Options and warrants outstanding at December31, 2009, 2008 and 2007, to purchase 70million, 67million and 13million common shares respectively, were not included in the computation of diluted earnings per share for the years ended December31, 2009, 2008 and 2007, respectively, because they were antidilutive. Convertible senior debentures that could potentially be converted into shares of the Companys common stock pursuant to specified formulas, were not included in the computation of diluted earnings per share because they were antidilutive.

Employee Benefits

Employee Benefits
	12 Months Ended Dec. 31, 2009 USD / shares
Employee Benefits [Abstract]
EMPLOYEE BENEFITS	Note17Employee Benefits Employee Retirement Savings Plan The Company has a defined contribution retirement savings plan that covers substantially all its employees. Qualified employees are allowed to contribute up to 75percent of their annual compensation, subject to Internal Revenue Service limits, through salary deductions under Section401(k) of the Internal Revenue Code. Employee contributions are invested, at the employees direction, among a variety of investment alternatives. Employee contributions are 100percent matched by the Company, up to four percent of an employees eligible annual compensation. The Companys matching contribution vests immediately. Although the matching contribution is initially invested in the Companys common stock, an employee can reinvest the matching contributions among various investment alternatives. Total expense was $78million, $76million and $62million in 2009, 2008 and 2007, respectively. Pension Plans The Company has qualified noncontributory defined benefit pension plans that provide benefits to substantially all its employees. Pension benefits are provided to eligible employees based on years of service, multiplied by a percentage of their final average pay. As a result of plan mergers, pension benefits may also be provided using two cash balance benefit formulas where only investment or interest credits continue to be credited to participants accounts. Employees become vested upon completing five years of vesting service. Effective January1, 2010, the Company established a new cash balance formula for certain current and all future eligible employees. Participants will receive annual pay credits based on eligible pay multiplied by a percentage determined by their age and years of service. Participants will also receive an annual interest credit. This new plan formula resulted in a $35million reduction of the 2009 projected benefit obligation. In general, the Companys qualified pension plans objectives include maintaining a funded status sufficient to meet participant benefit obligations over time while reducing long-term funding requirements and pension costs. The Company has an established process for evaluating all the plans, their performance and significant plan assumptions, including the assumed discount rate and the long-term rate of return (LTROR). Annually, the Companys Compensation and Human Resources Committee (the Committee), assisted by outside consultants, evaluates plan objectives, funding policies and plan investment policies considering its long-term investment time horizon and asset allocation strategies. The process also evaluates significant plan assumptions. Although plan assumptions are established annually, the Company may update its analysis on an interim basis in order to be responsive to significant events that occur during the year, such as plan mergers and amendments. The Companys funding policy is to contribute amounts to its plans sufficient to meet the minimum funding requirements of the Employee Retirement Income Security Act of 1974, as amended by the Pension Protection Act, plus such additional amounts as the Company determines to be appropriat

Stock-Based Compensation

Stock-Based Compensation
	12 Months Ended Dec. 31, 2009 USD / shares
Stock-Based Compensation [Abstract]
STOCK-BASED COMPENSATION	Note18Stock-Based Compensation As part of its employee and director compensation programs, the Company may grant certain stock awards under the provisions of the existing stock compensation plans, including plans assumed in acquisitions. The plans provide for grants of options to purchase shares of common stock at a fixed price equal to the fair value of the underlying stock at the date of grant. Option grants are generally exercisable up to ten years from the date of grant. In addition, the plans provide for grants of shares of common stock or stock units that are subject to restriction on transfer prior to vesting. Most stock and unit awards vest over three to five years and are subject to forfeiture if certain vesting requirements are not met. Stock incentive plans of acquired companies are generally terminated at the merger closing dates. Option holders under such plans receive the Companys common stock, or options to buy the Companys stock, based on the conversion terms of the various merger agreements. The historical stock award information presented below has been restated to reflect the options originally granted under acquired companies plans. At December31, 2009, there were 27 million shares (subject to adjustment for forfeitures) available for grant under various plans. Stock Option Awards The following is a summary of stock options outstanding and exercised under various stock options plans of the Company: Weighted-Average Aggregate Stock Weighted-Average Remaining Intrinsic Value Year Ended December 31 Options/Shares Exercise Price Contractual Term (In millions) 2009 Number outstanding at beginning of period 82,293,011 $ 29.08 Granted 14,316,237 12.04 Exercised (1,085,328 ) 19.98 Cancelled(a) (7,144,451 ) 28.33 Number outstanding at end of period(b) 88,379,469 $ 26.49 6.1 $ (352 ) Exercisable at end of period 50,538,048 $ 27.52 4.5 $ (253 ) 2008 Number outstanding at beginning of period 91,211,464 $ 27.22 Granted 22,464,085 32.19 Exercised (28,528,238 ) 25.27 Cancelled(a) (2,854,300 ) 31.94 Number outstanding at end of period(b) 82,293,011 $ 29.08 6.0 $ (335 ) Exercisable at end of period 43,787,801 $ 26.11 4.0 $ (48 ) 2007 Number outstanding at beginning of period 97,052,221 $ 25.42

Income Taxes

Income Taxes
	12 Months Ended Dec. 31, 2009 USD / shares
Income Taxes [Abstract]
INCOME TAXES	Note19Income Taxes The components of income tax expense were: (Dollars in Millions) 2009 2008 2007 Federal Current $ 765 $ 1,832 $ 1,732 Deferred (499 ) (958 ) (95 ) Federal income tax 266 874 1,637 State Current 175 300 248 Deferred (46 ) (87 ) (2 ) State income tax 129 213 246 Total income tax provision $ 395 $ 1,087 $ 1,883 A reconciliation of expected income tax expense at the federal statutory rate of 35percent to the Companys applicable income tax expense follows: (Dollars in Millions) 2009 2008 2007 Tax at statutory rate (35percent) $ 921 $ 1,435 $ 2,200 State income tax, at statutory rates, net of federal tax benefit 84 138 160 Tax effect of Tax credits (421 ) (301 ) (245 ) Tax-exempt income (202 ) (173 ) (130 ) Noncontrolling interests (11 ) (24 ) (27 ) Resolution of state income tax examinations (57 ) Other items 24 12 (18 ) Applicable income taxes $ 395 $ 1,087 $ 1,883 The tax effects of fair value adjustments on securities available-for-sale, derivative instruments in cash flow hedges and certain tax benefits related to stock options are recorded directly to shareholders equity as part of other comprehensive income (loss). In preparing its tax returns, the Company is required to interpret complex tax laws and regulations and utilize income and cost allocation methods to determine its taxable income. On an ongoing basis, the Company is subject to examinations by federal, state and local government taxing authorities that may give rise to differing interpretations of these complex laws, regulations and methods. Due to the nature of the examination process, it generally takes years before these examinations are completed and matters are resolved. Included in earnings for 2009, 2008 and 2007 were reductions in income tax expense and associated liabilities related to the resolution of various state income tax examinations which cover varying years from 2001 through 2008 in different states. The resolution of these cycles was the result of negotiations held between the Company and representatives of various taxing authorities throughout the examinations. Federal tax examinations for all years ending through December31, 2006, are completed and resolved. During 2009, the Internal Revenue Service began its examination of the Companys tax returns for the yea

Derivative Instruments

Derivative Instruments
	12 Months Ended Dec. 31, 2009 USD / shares
Derivative Instruments [Abstract]
DERIVATIVE INSTRUMENTS	Note 20Derivative Instruments The Company recognizes all derivatives in the consolidated balance sheet at fair value as other assets or liabilities. On the date the Company enters into a derivative contract, the derivative is designated as either a hedge of the fair value of a recognized asset or liability, including a hedge of foreign currency exposure (fair value hedge); a hedge of a forecasted transaction or the variability of cash flows to be paid related to a recognized asset or liability (cash flow hedge); or a customer accommodation or an economic hedge for asset/liability risk management purposes (free-standing derivative). Of the Companys $46.8billion of total notional amount of asset and liability management positions at December31, 2009, $15.4billion was designated as a fair value or cash flow hedge. When a derivative is designated as either a fair value or cash flow hedge, the Company performs an assessment, at inception and quarterly thereafter to determine the effectiveness of the derivative in offsetting changes in the value of the hedged items. Fair Value Hedges These derivatives are primarily interest rate swaps that hedge the change in fair value related to interest rate changes of underlying fixed-rate debt and junior subordinated debentures. Changes in the fair value of derivatives designated as fair value hedges, and changes in the fair value of the hedged items, are recorded in earnings. The change in fair value attributed to hedge ineffectiveness was not material. The Company also uses forward commitments to sell specified amounts of certain foreign currencies and foreign denominated debt to hedge the volatility of its investment in foreign operations as driven by fluctuations in foreign currency exchange rates. The net amount of gains or losses included in the cumulative translation adjustment for the year ended December31, 2009 was not material. Cash Flow Hedges These derivatives are interest rate swaps that are hedges of the forecasted cash flows from the underlying variable-rate debt. Changes in the fair value of derivatives designated as cash flow hedges are recorded in other comprehensive income (loss) until income from the cash flows of the hedged items is realized. If a derivative designated as a cash flow hedge is terminated or ceases to be highly effective, the gain or loss in other comprehensive income (loss) is amortized to earnings over the period the forecasted hedged transactions impact earnings. If a hedged forecasted transaction is no longer probable, hedge accounting is ceased and any gain or loss included in other comprehensive income (loss) is reported in earnings immediately. At December31, 2009, the Company had $327million of realized and unrealized losses on derivatives classified as cash flow hedges recorded in other comprehensive income (loss), compared with $650 million at December31, 2008. The estimated amount to be reclassified from other comprehensive income (loss) into earnings during the next 12months is a loss of $126million. This includes gains and losses related to hedges that were terminated early for which the forecasted transactions are still probable. Al

Fair Values of Assets and Liabi

Fair Values of Assets and Liabilities
	12 Months Ended Dec. 31, 2009 USD / shares
Fair Values of Assets and Liabilities [Abstract]
FAIR VALUES OF ASSETS AND LIABILITIES	Note21 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, investment securities, certain mortgage loans held for sale (MLHFS) and MSRs 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. Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. A fair value measurement reflects all of the assumptions that market participants would use in pricing the asset or liability, including assumptions about the risk inherent in a particular valuation technique, the effect of a restriction on the sale or use of an asset, and the risk of nonperformance. The Company groups its assets and liabilities measured at fair value into a three-level hierarchy for valuation techniques used to measure assets and liabilities at fair value. This hierarchy is based on whether the valuation inputs are observable or unobservable. These levels are: Level1 Quoted prices in active markets for identical assets or liabilities. Level1 includes U.S.Treasury and exchange-traded instruments. Level2 Observable inputs other than Level1 prices, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level2 includes debt securities that are traded less frequently than exchange-traded instruments and which are valued using third party pricing services; derivative contracts whose value is determined using a pricing model with inputs that are observable in the market or can be derived principally from or corroborated by observable market data; and MLHFS whose values are determined using quoted prices for similar assets or pricing models with inputs that are observable in the market or can be corroborated by observable market data. Level3 Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. Level3 assets and liabilities include financial instruments whose values are determined using pricing models, discounted cash flow methodologies, or similar techniques, as well as instruments for which the determination of fair value requires significant management judgment or estimation. This category includes residential MSRs, certain debt securities, including the Companys SIV-related investments and non-agency mortgaged-backed

Guarantees and Contingent Liabi

Guarantees and Contingent Liabilities
	12 Months Ended Dec. 31, 2009 USD / shares
Guarantees and Contingent Liabilities [Abstract]
GUARANTEES AND CONTINGENT LIABILITIES	Note22Guarantees and Contingent Liabilities Commitments to Extend Credit Commitments to extend credit are legally binding and generally have fixed expiration dates or other termination clauses. The contractual amount represents the Companys exposure to credit loss, in the event of default by the borrower. The Company manages this credit risk by using the same credit policies it applies to loans. Collateral is obtained to secure commitments based on managements credit assessment of the borrower. The collateral may include marketable securities, receivables, inventory, equipment and real estate. Since the Company expects many of the commitments to expire without being drawn, total commitment amounts do not necessarily represent the Companys future liquidity requirements. In addition, the commitments include consumer credit lines that are cancelable upon notification to the consumer. Letters of Credit Standby letters of credit are commitments the Company issues to guarantee the performance of a customer to a third-party. The guarantees frequently support public and private borrowing arrangements, including commercial paper issuances, bond financings and other similar transactions. The Company issues commercial letters of credit on behalf of customers to ensure payment or collection in connection with trade transactions. In the event of a customers nonperformance, the Companys credit loss exposure is the same as in any extension of credit, up to the letters contractual amount. Management assesses the borrowers credit to determine the necessary collateral, which may include marketable securities, receivables, inventory, equipment and real estate. Since the conditions requiring the Company to fund letters of credit may not occur, the Company expects its liquidity requirements to be less than the total outstanding commitments. The maximum potential future payments guaranteed by the Company under standby letter of credit arrangements at December31, 2009, were approximately $17.9billion with a weighted-average term of approximately 19months. The estimated fair value of standby letters of credit was approximately $134million at December31, 2009. The contract or notional amounts of commitments to extend credit and letters of credit at December31, 2009, were as follows: Term Less Than Greater Than (Dollars in Millions) One Year One Year Total Commitments to extend credit Commercial $ 17,894 $ 40,431 $ 58,325 Corporate and purchasing cards(a) 14,550 14,550 Consumer credit cards(a) 63,671 63,671 Other consumer 3,676 16,962 20,638 Letters of credit Standby 8,009 9,890 17,899 Commercial 263 29 292 (a)Primarily cancelable at the Companys discretion. Lease Commitments Rental expense for operating leases totaled $253million in 2009, $234million in 2008 and $21

U.S. Bancorp

U.S. Bancorp (Parent Company)
	12 Months Ended Dec. 31, 2009 USD / shares
U.S. Bancorp (Parent Company) [Abstract]
U.S. BANCORP (PARENT COMPANY)	Note23U.S. Bancorp (Parent Company) Condensed Balance Sheet December31 (Dollars in Millions) 2009 2008 Assets Due from banks, principally interest-bearing $ 10,568 $ 12,082 Available-for-sale securities 1,554 1,842 Investments in bank subsidiaries 24,798 21,305 Investments in nonbank subsidiaries 854 703 Advances to bank subsidiaries 1,500 700 Advances to nonbank subsidiaries 918 745 Other assets 1,511 2,161 Total assets $ 41,703 $ 39,538 Liabilities and Shareholders Equity Short-term funds borrowed $ 842 $ 1,234 Long-term debt 14,538 10,831 Other liabilities 360 1,173 Shareholders equity 25,963 26,300 Total liabilities and shareholders equity $ 41,703 $ 39,538 Condensed Statement of Income Year Ended December31 (Dollars in Millions) 2009 2008 2007 Income Dividends from bank subsidiaries $ 625 $ 1,935 $ 3,541 Dividends from nonbank subsidiaries 94 6 224 Interest from subsidiaries 82 125 587 Other income (299 ) (674 ) (27 ) Total income 502 1,392 4,325 Expense Interest on short-term funds borrowed 3 24 51 Interest on long-term debt 332 409 663 Other expense 44 45 34 Total expense 379 478 748 Income before income taxes and equity in undistributed income of subsidiaries 123 914 3,577 Applicable income taxes (197 ) (348 ) (63 ) Income of parent company 320 1,262 3,640 Equity in undistributed income of subsidiaries 1,885 1,684 684 Net income attributable to U.S.Bancorp $ 2,205 $ 2,946 $ 4,324 Condensed Statement of Cash Flows Year Ended December31 (Dollars in Millions) 2009 2008 2007 Operating Activities Net income attributable to U.S.Bancorp $ 2,205 $ 2,946 $ 4,324 Adjustments to reconcile net income to net cash provided by operating activities Equity in undistributed income of subsidiaries (1,885 ) (1,684 ) (684 ) Other, net 703 466 4 Net cash provided by operating activities 1,023

Subsequent Events

Subsequent Events
	12 Months Ended Dec. 31, 2009 USD / shares
Subsequent Events [Abstract]
SUBSEQUENT EVENTS	Note24Subsequent Events The Company has evaluated the impact of events that have occurred subsequent to December31, 2009 through the date the consolidated financial statements were filed with the United States Securities and Exchange Commission. Based on this evaluation, the Company has determined none of these events were required to be recognized in the consolidated financial statements.