Shareholders' Equity (Tables)

12 Months Ended

Dec. 31, 2017

Equity [Abstract]

Regulatory Capital Ratios

  TABLE 23   Regulatory Capital Ratios

	U.S. Bancorp						U.S. Bank National Association
At December 31 (Dollars in Millions)	2017			2016			2017			2016
Basel III transitional standardized approach:
Common equity tier 1 capital	$	34,369		$	33,720		$	37,586		$	36,914
Tier 1 capital		39,806			39,421			37,701			37,114
Total risk-based capital		47,503			47,355			45,466			44,853
Risk-weighted assets		367,771			358,237			361,973			352,023
Common equity tier 1 capital as a percent of risk-weighted assets		9.3	%		9.4	%		10.4	%		10.5	%
Tier 1 capital as a percent of risk-weighted assets		10.8			11.0			10.4			10.5
Total risk-based capital as a percent of risk-weighted assets		12.9			13.2			12.6			12.7
Tier 1 capital as a percent of adjusted quarterly average assets (leverage ratio)		8.9			9.0			8.6			8.6
Basel III transitional advanced approaches:
Common equity tier 1 capital	$	34,369		$	33,720		$	37,586		$	36,914
Tier 1 capital		39,806			39,421			37,701			37,114
Total risk-based capital		44,477			44,264			42,414			41,737
Risk-weighted assets		287,211			277,141			281,659			271,920
Common equity tier 1 capital as a percent of risk-weighted assets		12.0	%		12.2	%		13.3	%		13.6	%
Tier 1 capital as a percent of risk-weighted assets		13.9			14.2			13.4			13.6
Total risk-based capital as a percent of risk-weighted assets		15.5			16.0			15.1			15.3

Bank Regulatory Capital Requirements

	Minimum			Well- Capitalized
2017
Common equity tier 1 capital as a percent of risk-weighted assets		5.750	%		6.500	%
Tier 1 capital as a percent of risk-weighted assets		7.250			8.000
Total risk-based capital as a percent of risk-weighted assets		9.250			10.000
Tier 1 capital as a percent of adjusted quarterly average assets (leverage ratio)		4.000			5.000
2016
Common equity tier 1 capital as a percent of risk-weighted assets		5.125	%		6.500	%
Tier 1 capital as a percent of risk-weighted assets		6.625			8.000
Total risk-based capital as a percent of risk-weighted assets		8.625			10.000
Tier 1 capital as a percent of adjusted quarterly average assets (leverage ratio)		4.000			5.000

Number of Shares Issued and Outstanding and Carrying Amount of Preferred Stock

The number of shares issued and outstanding and the carrying amount of each outstanding series of the Company’s preferred stock were as follows:

	2017								2016
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
Series H		20,000		500		13		487		20,000		500		13		487
Series I		30,000		750		5		745		30,000		750		5		745
Series J		40,000		1,000		7		993		–		–		–		–
Total preferred stock(a)		186,510	$	5,601	$	182	$	5,419		189,910	$	5,686	$	185	$	5,501

(a) The par value of all shares issued and outstanding at December 31, 2017 and 2016, was $1.00 per share.

Common Stock Repurchased

The following table summarizes the Company’s common stock repurchased in each of the last three years:

(Dollars and Shares in Millions)	Shares		Value
2017		49	$	2,622
2016		61		2,600
2015		52		2,246

Reconciliation of Transactions Affecting Accumulated Other Comprehensive Income (Loss) Included in Shareholders' Equity

Shareholders’ equity is affected by transactions and valuations of asset and liability positions that require adjustments to accumulated other comprehensive income (loss). The reconciliation of the transactions affecting accumulated other comprehensive income (loss) included in shareholders’ equity for the years ended December 31, is as follows:

(Dollars in Millions)	Unrealized Gains (Losses) on Securities Available-For- Sale			Unrealized Gains (Losses) on Securities Transferred From Available-For-Sale to Held-To-Maturity			Unrealized Gains (Losses) on Derivative Hedges			Unrealized Gains (Losses) on Retirement Plans			Foreign Currency Translation			Total
2017
Balance at beginning of period	$	(431	)	$	25		$	55		$	(1,113	)	$	(71	)	$	(1,535	)
Changes in unrealized gains and losses		178			–			(5	)		(41	)		–			132
Foreign currency translation adjustment(a)		–			–			–			–			(2	)		(2	)
Reclassification to earnings of realized gains and losses		(57	)		(13	)		30			117			–			77
Applicable income taxes		(47	)		5			(9	)		(29	)		4			(76	)
Balance at end of period	$	(357	)	$	17		$	71		$	(1,066	)	$	(69	)	$	(1,404	)
2016
Balance at beginning of period	$	111		$	36		$	(67	)	$	(1,056	)	$	(43	)	$	(1,019	)
Changes in unrealized gains and losses		(858	)		–			74			(255	)		–			(1,039	)
Other-than-temporary impairment not recognized in earnings on securities available-for-sale		(1	)		–			–			–			–			(1	)
Foreign currency translation adjustment(a)		–			–			–			–			(28	)		(28	)
Reclassification to earnings of realized gains and losses		(22	)		(18	)		124			163			–			247
Applicable income taxes		339			7			(76	)		35			–			305
Balance at end of period	$	(431	)	$	25		$	55		$	(1,113	)	$	(71	)	$	(1,535	)
2015
Balance at beginning of period	$	392		$	52		$	(172	)	$	(1,106	)	$	(62	)	$	(896	)
Changes in unrealized gains and losses		(457	)		–			(25	)		(142	)		–			(624	)
Foreign currency translation adjustment(a)		–			–			–			–			20			20
Reclassification to earnings of realized gains and losses		–			(25	)		195			223			–			393
Applicable income taxes		176			9			(65	)		(31	)		(1	)		88
Balance at end of period	$	111		$	36		$	(67	)	$	(1,056	)	$	(43	)	$	(1,019	)

(a) Represents the impact of changes in foreign currency exchange rates on the Company’s investment in foreign operations and related hedges.

Impact to Net Income for Items Reclassified out of Accumulated Other Comprehensive Income and into Earnings

Additional detail about the impact to net income for items reclassified out of accumulated other comprehensive income (loss) and into earnings for the years ended December 31, is as follows:

	Impact to Net Income									Affected Line Item in the Consolidated Statement of Income
(Dollars in Millions)	2017			2016			2015
Unrealized gains (losses) on securities available-for-sale
Realized gains (losses) on sale of securities	$	57		$	27		$	1		Total securities gains (losses), net
Other-than-temporary impairment recognized in earnings		–			(5	)		(1	)
		57			22			–		Total before tax
		(22	)		(9	)		–		Applicable income taxes
		35			13			–		Net-of-tax
Unrealized gains (losses) on securities transferred from available-for-sale to held-to-maturity
Amortization of unrealized gains		13			18			25		Interest income
		(5	)		(7	)		(9	)	Applicable income taxes
		8			11			16		Net-of-tax
Unrealized gains (losses) on derivative hedges
Realized gains (losses) on derivative hedges		(30	)		(124	)		(195	)	Interest expense
		11			48			75		Applicable income taxes
		(19	)		(76	)		(120	)	Net-of-tax
Unrealized gains (losses) on retirement plans
Actuarial gains (losses) and prior service cost (credit) amortization		(117	)		(163	)		(223	)	Employee benefits expense
		45			63			85		Applicable income taxes
		(72	)		(100	)		(138	)	Net-of-tax
Total impact to net income	$	(48	)	$	(152	)	$	(242	)

Components of Company's Regulatory Capital

The following table provides the components of the Company’s regulatory capital at December 31:

(Dollars in Millions)	2017			2016
Basel III transitional standardized approach:
Common shareholders’ equity	$	43,621		$	41,797
Less intangible assets
Goodwill (net of deferred tax liability)		(8,613	)		(8,203	)
Other disallowed intangible assets		(466	)		(427	)
Other(a)		(173	)		553
Total common equity tier 1 capital		34,369			33,720
Qualifying preferred stock		5,419			5,501
Noncontrolling interests eligible for tier 1 capital		117			203
Other(b)		(99	)		(3	)
Total tier 1 capital		39,806			39,421
Eligible portion of allowance for credit losses		4,417			4,357
Subordinated debt and noncontrolling interests eligible for tier 2 capital		3,280			3,576
Other		–			1
Total tier 2 capital		7,697			7,934
Total risk-based capital	$	47,503		$	47,355
Risk-weighted assets	$	367,771		$	358,237
Basel III transitional advanced approaches:
Common shareholders’ equity	$	43,621		$	41,797
Less intangible assets
Goodwill (net of deferred tax liability)		(8,613	)		(8,203	)
Other disallowed intangible assets		(466	)		(427	)
Other(a)		(173	)		553
Total common equity tier 1 capital		34,369			33,720
Qualifying preferred stock		5,419			5,501
Noncontrolling interests eligible for tier 1 capital		117			203
Other(b)		(99	)		(3	)
Total tier 1 capital		39,806			39,421
Eligible portion of allowance for credit losses		1,391			1,266
Subordinated debt and noncontrolling interests eligible for tier 2 capital		3,280			3,576
Other		–			1
Total tier 2 capital		4,671			4,843
Total risk-based capital	$	44,477		$	44,264
Risk-weighted assets	$	287,211		$	277,141

(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., and the portion of deferred tax assets related to net operating loss and tax credit carryforwards not eligible for common equity tier 1 capital.

(b) Includes the remaining portion of deferred tax assets not eligible for total tier 1 capital.