Company: USB-PA
Filing Date: 2025-05-06
Form Type: 10-Q
Source: 0000036104-25-000028
Chunk: 88

Company: US BANCORP \DE\
Filing Date: 2025-05-06
Form: 10-Q
Item: Item 8
Chunk 88
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 cumulative amount of basis adjustments associated with these hedging relationships was $204 million. At December 31, 2024, the amortized cost of the closed portfolios used in these hedging relationships was $17.5 billion, of which $11.6 billion was designated as hedged. At December 31, 2024, the cumulative amount of basis adjustments associated with these hedging relationships was $13 million.

54U.S. Bancorp

The table below shows the gains (losses) recognized in earnings for other economic hedges and the customer-related positions:  Three Months EndedMarch 31(Dollars in Millions)Location of Gains (Losses) Recognized in Earnings20252024Asset and Liability Management Positions Other economic hedges Interest rate contracts Futures and forwardsMortgage banking revenue$24 $(12)Purchased and written optionsMortgage banking revenue30 39 SwapsMortgage banking revenue/Interest expense56 (86)Foreign exchange forward contractsOther noninterest income2 4 Equity contractsCompensation expense(19)— Credit contractsCapital markets revenue17 (2)OtherOther noninterest income— (75)Customer-Related Positions   Interest rate contracts   SwapsCapital markets revenue35 131 Purchased and written optionsCapital markets revenue12 (47)FuturesCapital markets revenue1 — Foreign exchange rate contracts   Forwards, spots and swapsCapital markets revenue48 24 Purchased and written optionsCapital markets revenue1 — Commodity contracts   SwapsCapital markets revenue47 2 Purchased and written optionsCapital markets revenue(1)2 FuturesCapital markets revenue(41)— Credit contractsCapital markets revenue2 (1)Derivatives are subject to credit risk associated with counterparties to the derivative contracts. The Company measures that credit risk using a credit valuation adjustment and includes it within the fair value of the derivative. The Company manages counterparty credit risk through diversification of its derivative positions among various counterparties, by entering into derivative positions that are centrally cleared through clearinghouses, by entering into master netting arrangements and, where possible, by requiring collateral arrangements. A master netting arrangement allows two counterparties, who have multiple derivative contracts with each other, the ability to net settle amounts under all contracts, including any related collateral, through a single payment and in a single currency. Collateral arrangements generally require the counterparty