U.S. Bancorp (Parent Company)

12 Months Ended

Dec. 31, 2016

Condensed Financial Information of Parent Company Only Disclosure [Abstract]

U.S. Bancorp (Parent Company)

  NOTE 23   _{U.S. Bancorp (Parent  Company)}

Condensed Balance Sheet

At December 31 (Dollars in Millions)	2016		2015
Assets
Due from banks, principally interest-bearing	$	7,800	$	9,426
Available-for-sale securities		225		352
Investments in bank subsidiaries		44,955		41,708
Investments in nonbank subsidiaries		2,326		2,060
Advances to bank subsidiaries		3,800		3,150
Advances to nonbank subsidiaries		1,265		823
Other assets		1,052		983
Total assets	$	61,423	$	58,502
Liabilities and Shareholders’ Equity
Short-term funds borrowed	$	22	$	25
Long-term debt		13,045		11,453
Other liabilities		1,058		893
Shareholders’ equity		47,298		46,131
Total liabilities and shareholders’ equity	$	61,423	$	58,502

Condensed Statement of Income

Year Ended December 31 (Dollars in Millions)	2016			2015			2014
Income
Dividends from bank subsidiaries	$	2,100		$	3,900		$	3,850
Dividends from nonbank subsidiaries		4			3			38
Interest from subsidiaries		140			120			123
Other income		57			55			64
Total income		2,301			4,078			4,075
Expense
Interest expense		327			292			335
Other expense		123			105			90
Total expense		450			397			425
Income before income taxes and equity in undistributed income of subsidiaries		1,851			3,681			3,650
Applicable income taxes		(97	)		(207	)		(94	)
Income of parent company		1,948			3,888			3,744
Equity in undistributed income of subsidiaries		3,940			1,991			2,107
Net income attributable to U.S. Bancorp	$	5,888		$	5,879		$	5,851

Condensed Statement of Cash Flows

Year Ended December 31 (Dollars in Millions)	2016			2015			2014
Operating Activities
Net income attributable to U.S. Bancorp	$	5,888		$	5,879		$	5,851
Adjustments to reconcile net income to net cash provided by operating activities
Equity in undistributed income of subsidiaries		(3,940	)		(1,991	)		(2,107	)
Other, net		75			507			48
Net cash provided by operating activities		2,023			4,395			3,792
Investing Activities
Proceeds from sales and maturities of investment securities		232			153			46
Purchases of investment securities		(120	)		(47	)		(39	)
Net (increase) decrease in short-term advances to subsidiaries		(442	)		(273	)		984
Long-term advances to subsidiaries		(750	)		(500	)		(1,800	)
Principal collected on long-term advances to subsidiaries		100			–			1,400
Other, net		(12	)		(6	)		(52	)
Net cash (used in) provided by investing activities		(992	)		(673	)		539
Financing Activities
Net (decrease) increase in short-term borrowings		(3	)		(152	)		39
Proceeds from issuance of long-term debt		3,550			–			3,250
Principal payments or redemption of long-term debt		(1,926	)		(1,750	)		(1,500	)
Proceeds from issuance of preferred stock		–			745			–
Proceeds from issuance of common stock		355			295			453
Repurchase of common stock		(2,556	)		(2,190	)		(2,200	)
Cash dividends paid on preferred stock		(267	)		(242	)		(243	)
Cash dividends paid on common stock		(1,810	)		(1,777	)		(1,726	)
Net cash used in financing activities		(2,657	)		(5,071	)		(1,927	)
Change in cash and due from banks		(1,626	)		(1,349	)		2,404
Cash and due from banks at beginning of year		9,426			10,775			8,371
Cash and due from banks at end of year	$	7,800		$	9,426		$	10,775

Transfer of funds (dividends, loans or advances) from bank subsidiaries to the Company is restricted. Federal law requires loans to the Company or its affiliates to be secured and generally limits loans to the Company or an individual affiliate to 10 percent of each bank’s unimpaired capital and surplus. In the aggregate, loans to the Company and all affiliates cannot exceed 20 percent of each bank’s unimpaired capital and surplus.

Dividend payments to the Company by its subsidiary bank are subject to regulatory review and statutory limitations and, in some instances, regulatory approval. In general, dividends by the Company’s bank subsidiary to the parent company are limited by rules which compare dividends to net income for regulatorily-defined periods. Furthermore, dividends are restricted by minimum capital constraints for all national banks.