MINNEAPOLIS--(BUSINESS WIRE)--Nov. 14, 2007--U.S. Bancorp
(NYSE:USB) today announced that it would restate its previously
reported earnings for the third quarter of 2007 as a result of a
subsequent event, the recently announced settlement of a class action
lawsuit and developments related to Visa Inc.
On October 3, 2007, Visa completed its reorganization in
preparation for its initial public offering (IPO) expected to occur in
the first quarter of 2008. As part of this reorganization, U.S.
Bancorp received its proportionate number of Class USA shares of Visa
Inc. common stock. In connection with the IPO, it is expected that a
portion of these shares will be redeemed for cash, with the remaining
shares to be converted to Class A shares three years after the IPO or
upon settlement of certain covered litigation, whichever is later.
Additionally, Visa is expected to set aside a portion of the proceeds
from the IPO in an escrow account to fund this litigation as well as
certain other litigation judgments or settlements that may occur.
On November 7, 2007, after the close of business, Visa announced
that it had reached a settlement with American Express related to an
antitrust lawsuit to which U.S. Bancorp is a party. Also, on November
7, the Company submitted its Quarterly Report on Form 10-Q for the
quarter ended September 30, 2007 for filing, which filing became
effective on November 8. In addition, late in the day on November 7,
the Company received preliminary guidance from the SEC accounting
staff with respect to the appropriate accounting treatment with
respect to a number of accounting issues arising out of the Visa
reorganization in response to a request submitted by the Company and a
number of other banks. Over the next few days, the Company reviewed,
with its independent auditors the appropriate accounting treatment for
this settlement in light of this guidance.
As a result of this review, U.S. Bancorp will restate its third
quarter results to record a $115 million charge for its proportionate
share of the settlement of the American Express litigation. U.S.
Bancorp anticipates that its proportionate share of the proceeds of
the planned Visa IPO will more than offset this charge.
U.S. Bancorp, with $228 billion in assets, is the parent company
of U.S. Bank, the 6th largest commercial bank in the United States.
The company operates 2,512 banking offices and 4,870 ATMs, and
provides a comprehensive line of banking, brokerage, insurance,
investment, mortgage, trust and payment services products to
consumers, businesses and institutions. Visit U.S. Bancorp on the web
This press release contains forward-looking statements about U.S.
Bancorp. Statements that are not historical or current facts,
including statements about beliefs and expectations, are
forward-looking statements. These statements often include the words
"may," "could," "would," "should," "believes," "expects,"
"anticipates," "estimates," "intends," "plans," "targets,"
"potentially," "probably," "projects," "outlook" or similar
expressions. These forward-looking statements cover, among other
things, anticipated future revenue and expenses and the future plans
and prospects of the Company. Forward-looking statements involve
inherent risks and uncertainties, and important factors could cause
actual results to differ materially from those anticipated, including
changes in general business and economic conditions, changes in
interest rates, legal and regulatory developments, increased
competition from both banks and non-banks, changes in customer
behavior and preferences, effects of mergers and acquisitions and
related integration, effects of critical accounting policies and
judgments, management's ability to effectively manage credit risk,
market risk, operational risk, legal risk, and regulatory and
compliance risk, and uncertainty regarding consummation of the planned
Visa IPO. For discussion of these and other risks that may cause
actual results to differ from expectations, refer to our Annual Report
on Form 10-K for the year ended December 31, 2006, on file with the
Securities and Exchange Commission, including the sections entitled
"Risk Factors" and "Corporate Risk Profile." Forward-looking
statements speak only as of the date they are made, and the Company
undertakes no obligation to update them in light of new information or
CONTACT: U.S. Bancorp
Steve Dale, Media, 612-303-0784
Judith T. Murphy, Analysts, 612-303-0783
SOURCE: U.S. Bancorp