Shareholder' Equity (Tables)

12 Months Ended

Dec. 31, 2019

Federal Home Loan Banks [Abstract]

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:

	2019								2018
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 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		40,000		1,000		7		993
Series K		23,000		575		10		565		23,000		575		10		565
Total preferred stock(a)		209,510	$	6,176	$	192	$	5,984		209,510	$	6,176	$	192	$	5,984

(a) The par value of all shares issued and outstanding at December 31, 2019 and 2018, 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
2019		81	$	4,515
2018		54		2,844
2017		49		2,622

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 Investment Securities Available-For-Sale			Unrealized Gains (Losses) on Investment 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
2019
Balance at beginning of period	$	(946	)	$	14		$	112		$	(1,418	)	$	(84	)	$	(2,322	)
Changes in unrealized gains and losses		1,693			–			(229	)		(380	)		–			1,084
Unrealized gains and losses on held-to-maturity investment securities transferred to available-for-sale		150			(9	)		–			–			–			141
Foreign currency translation adjustment(a)		–			–			–			–			26			26
Reclassification to earnings of realized gains and losses		(73	)		(7	)		11			89			–			20
Applicable income taxes		(445	)		2			55			73			(7	)		(322	)
Balance at end of period	$	379		$	–		$	(51	)	$	(1,636	)	$	(65	)	$	(1,373	)
2018
Balance at beginning of period	$	(357	)	$	17		$	71		$	(1,066	)	$	(69	)	$	(1,404	)
Revaluation of tax related balances(b)		(77	)		4			15			(229	)		(13	)		(300	)
Changes in unrealized gains and losses		(656	)		–			39			(302	)		–			(919	)
Foreign currency translation adjustment(a)		–			–			–			–			3			3
Reclassification to earnings of realized gains and losses		(30	)		(9	)		(5	)		137			–			93
Applicable income taxes		174			2			(8	)		42			(5	)		205
Balance at end of period	$	(946	)	$	14		$	112		$	(1,418	)	$	(84	)	$	(2,322	)
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	)

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

(b) Reflects the adoption of new accounting guidance on January 1, 2018 to reclassify the impact of the reduced federal statutory rate for corporations included in 2017 tax reform legislation from accumulated other comprehensive income to retained earnings.

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)	2019			2018			2017
Unrealized gains (losses) on investment securities available-for-sale
Realized gains (losses) on sale of investment securities	$	73		$	30		$	57		Total securities gains (losses), net
		(18	)		(7	)		(22	)	Applicable income taxes
		55			23			35		Net-of-tax
Unrealized gains (losses) on investment securities transferred from available-for-sale to held-to-maturity
Amortization of unrealized gains		7			9			13		Interest income
		(2	)		(2	)		(5	)	Applicable income taxes
		5			7			8		Net-of-tax
Unrealized gains (losses) on derivative hedges
Realized gains (losses) on derivative hedges		(11	)		5			(30	)	Interest expense
		3			(2	)		11		Applicable income taxes
		(8	)		3			(19	)	Net-of-tax
Unrealized gains (losses) on retirement plans
Actuarial gains (losses) and prior service cost (credit) amortization		(89	)		(137	)		(117	)	Other noninterest expense
		22			35			45		Applicable income taxes
		(67	)		(102	)		(72	)	Net-of-tax
Total impact to net income	$	(15	)	$	(69	)	$	(48	)

Components of regulatory capital and summary of regulatory capital requirements and ratios

The following tables provide a summary of the regulatory capital requirements in effect, along with the actual components and ratios  for the Company and its bank subsidiary, at December 31, 2019 and 2018:

	U.S. Bancorp						U.S. Bank National Association
(Dollars in Millions)	2019			2018			2019			2018
Basel III standardized approach:
Common shareholders’ equity	$	45,869		$	45,045		$	48,592		$	47,728
Less intangible assets
Goodwill (net of deferred tax liability)		(8,788	)		(8,549	)		(8,806	)		(8,566	)
Other disallowed intangible assets		(677	)		(601	)		(710	)		(732	)
Other(a)		(691	)		(1,171	)		38			(112	)
Total common equity tier 1 capital		35,713			34,724			39,114			38,318
Qualifying preferred stock		5,984			5,984			–			–
Noncontrolling interests eligible for tier 1 capital		28			36			28			36
Other(b)		(4	)		(3	)		(4	)		(3	)
Total tier 1 capital		41,721			40,741			39,138			38,351
Eligible portion of allowance for credit losses		4,491			4,441			4,491			4,441
Subordinated debt and noncontrolling interests eligible for tier 2 capital		3,532			2,996			3,365			3,168
Total tier 2 capital		8,023			7,437			7,856			7,609
Total risk-based capital	$	49,744		$	48,178		$	46,994		$	45,960
Risk-weighted assets	$	391,269		$	381,661		$	383,560		$	374,299
Common equity tier 1 capital as a percent of risk-weighted assets		9.1	%		9.1	%		10.2	%		10.2	%
Tier 1 capital as a percent of risk-weighted assets		10.7			10.7			10.2			10.2
Total risk-based capital as a percent of risk-weighted assets		12.7			12.6			12.3			12.3
Tier 1 capital as a percent of adjusted quarterly average assets (leverage ratio)		8.8			9.0			8.4			8.6
Basel III advanced approaches(c):
Common shareholders’ equity				$	45,045					$	47,728
Less intangible assets
Goodwill (net of deferred tax liability)					(8,549	)					(8,566	)
Other disallowed intangible assets					(601	)					(732	)
Other(a)					(1,171	)					(112	)
Total common equity tier 1 capital					34,724						38,318
Qualifying preferred stock					5,984						–
Noncontrolling interests eligible for tier 1 capital					36						36
Other(b)					(3	)					(3	)
Total tier 1 capital					40,741						38,351
Eligible portion of allowance for credit losses					1,399						1,364
Subordinated debt and noncontrolling interests eligible for tier 2 capital					2,996						3,168
Total tier 2 capital					4,395						4,532
Total risk-based capital				$	45,136					$	42,883
Risk-weighted assets				$	295,002					$	287,897
Common equity tier 1 capital as a percent of risk-weighted assets					11.8	%					13.3	%
Tier 1 capital as a percent of risk-weighted assets					13.8						13.3
Total risk-based capital as a percent of risk-weighted assets					15.3						14.9
Tier 1 capital as a percent of total on- and off-balance sheet leverage exposure (total leverage exposure ratio)		7.0	%		7.2			6.7	%		6.9

(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.

(c) Effective December 31, 2019, the Company is no longer subject to calculating its, or its bank subsidiary’s, capital adequacy as a percentage of risk-weighted assets under advanced approaches.

	Minimum(a)			Well- Capitalized
Bank Regulatory Capital Requirements
2019
Common equity tier 1 capital as a percent of risk-weighted assets		7.000	%		6.500	%
Tier 1 capital as a percent of risk-weighted assets		8.500			8.000
Total risk-based capital as a percent of risk-weighted assets		10.500			10.000
Tier 1 capital as a percent of adjusted quarterly average assets (leverage ratio)		4.000			5.000
Tier 1 capital as a percent of total on- and off-balance sheet leverage exposure (total leverage exposure ratio)		3.000			3.000
2018
Common equity tier 1 capital as a percent of risk-weighted assets		6.375	%		6.500	%
Tier 1 capital as a percent of risk-weighted assets		7.875			8.000
Total risk-based capital as a percent of risk-weighted assets		9.875			10.000
Tier 1 capital as a percent of adjusted quarterly average assets (leverage ratio)		4.000			5.000
Tier 1 capital as a percent of total on- and off-balance sheet leverage exposure (total leverage exposure ratio)		3.000			3.000

(a) The minimum common equity tier 1 capital, tier 1 capital and total risk-based capital ratio requirements reflect a capital conservation buffer requirement of 2.5 percent and 1.875 percent for 2019 and 2018, respectively. Banks and financial services holding companies must maintain minimum capital levels, including a capital conservation buffer requirement, to avoid limitations on capital distributions and certain discretionary compensation payments.