Business Context and Reporting Period
Company: U.S. Bancorp
Filing Type: Form 8-K (Current Report)
Date of Report: January 8, 2004
Subject: Adoption of fair value accounting for stock-based compensation.
Key Financial Metrics
This filing does not report current period revenue, profit, cash flow, margins, debt, or liquidity figures. It focuses exclusively on the impact of an accounting policy change.
- EPS Impact (2003): Expected decrease of approximately $0.06 per diluted share.
- EPS Impact (2002): Expected decrease of approximately $0.06 per diluted share.
Material Changes Versus Prior Period
The company announced a change in accounting method from the intrinsic value method to the fair value method for stock-based compensation. This change requires the retroactive restatement of all financial statement periods in fiscal years beginning after December 15, 1994. Consequently, financial statements for 1999 through 2002 and quarterly results for 2002 and 2003 will be adjusted.
Guidance, Outlook, and Risks
Implementation: The change will be implemented in the reporting for full year 2003 results using the "retroactive method."
Scope: The company will recognize compensation expense for the estimated fair value of all granted, modified, or settled employee stock options.
Risks: The filing contains forward-looking statements. Actual results may differ materially from anticipated results due to factors identified in the cautionary statement within the press release (Exhibit 99.1).
Investor Verification Checklist
- Verify the restated earnings per share for fiscal years 2002 and 2003 in subsequent filings.
- Review Exhibit 99.1 (Press Release) for the full text of the cautionary statement regarding forward-looking risks.
- Confirm the specific impact on net income and total compensation expense once the 2003 full-year results are released.