What are the "Replacement Capital Covenants" and how do they affect investors?

Replacement Capital Covenants are agreements entered into by U.S. Bancorp that restrict the company's ability to repay, redeem, or purchase certain capital securities, preferred stock, or other related securities. These covenants are in place to benefit holders of specific long-term debt. For investors, this means that the company has limitations on its ability to manage its capital structure concerning these specific securities, typically requiring it to issue new qualifying equity-like securities or obtain regulatory approval before undertaking such actions.

What is the status of the share repurchase program?

U.S. Bancorp had an authorization to repurchase up to 20 million shares of common stock, approved in December 2008, with a plan to continue through December 31, 2010. During the fourth quarter of 2009, the company repurchased a total of 7,450 shares under this program, indicating a relatively modest execution of the program during that specific period.

Where can I find detailed financial information?

This 10-K filing heavily relies on incorporating information by reference from U.S. Bancorp's 2009 Annual Report. Investors can find detailed financial statements, selected financial data, management's discussion and analysis, and quantitative and qualitative disclosures about market risk within the 2009 Annual Report, which is referenced throughout this filing.

Are there any significant legal proceedings or unresolved staff comments?

According to this filing, there are no legal proceedings to report and no unresolved staff comments as of the filing date.

US BANCORP \DE\ 10-K FY2009 Annual Report

Summary

This 10-K filing for U.S. Bancorp for the period ending December 30, 2009, provides incorporated details from its 2009 Annual Report. Key aspects for investors include information on the company's business operations, risk factors, properties, and capital covenants. The filing details the company's extensive real estate holdings, comprising both owned and leased facilities, which are considered adequate for its needs. A significant focus for investors is the information surrounding U.S. Bancorp's capital structure, particularly the various capital securities, preferred stock issuances, and replacement capital covenants. These covenants restrict the repayment or redemption of certain securities unless specific conditions, including proceeds from qualifying new securities and regulatory approval, are met. Additionally, the filing notes a share repurchase program authorized in late 2008, with repurchases continuing into the fourth quarter of 2009, indicating management's strategy regarding shareholder returns.

Financial Highlights

39 data points

Beta

Net Income

$2.21B

EPS (Diluted)

$0.97

Total Assets

$281.18B

Cash & Equivalents

$6.21B

Free Cash Flow

$7.60B

Financial Statements

Beta

Interest Expense	$3.02B
Net Income	$2.21B
EPS (Basic)	$0.97
EPS (Diluted)	$0.97
Shares Outstanding (Basic)	1.85B
Shares Outstanding (Diluted)	1.86B

Key Highlights

1The company has a significant physical presence with 1,955 owned and 1,521 leased facilities as of December 31, 2009.
2U.S. Bancorp has entered into multiple "Replacement Capital Covenants" that restrict the repayment or redemption of certain capital securities and preferred stock.
3These covenants require specific conditions, such as proceeds from qualifying equity-like securities and regulatory approval, to be met before repurchasing restricted securities.
4A share repurchase program was authorized in December 2008, allowing for the repurchase of up to 20 million shares through December 31, 2010.
5The company repurchased 7,450 shares of common stock during the fourth quarter of 2009 under this authorization.
6Key executive officers, including the Chairman, President, and CEO Richard K. Davis, and CFO Andrew Cecere, are identified.
7The filing incorporates extensive financial data and operational details from the company's 2009 Annual Report by reference.

US BANCORP \DE\ Annual Report, Year Ended Dec 31, 2009

Summary

Financial Highlights

Key Highlights

Frequently Asked Questions