U.S. Bank 401(k) Savings Plan
Notes to Financial Statements (continued)
4. Stable Value Fund (continued)
The Fund owns units of the SEI Trust Company Short-Term Investment Fund A S, which serve as the Funds
short-term liquidity vehicle.
5. Transactions with Parties in Interest
The Plan allows for transactions with certain parties who may perform services or have fiduciary responsibilities to the Plan. Parties in interest include the
Company and U.S. Bank National Association (the Trustee). Transactions involving funds administered by the Trustee are considered party-in-interest
transactions. These transactions are not considered prohibited transactions under 29 CFR 408(b) of the ERISA regulations.
The Plan invests in the common
stock of the Company. At December 31, 2022 and 2021, the Plan held 17,114,505 and 17,143,050 shares, respectively, of U.S. Bancorp common stock. During the years ended December 31, 2022 and 2021, the Plan recorded dividend income from U.S.
Bancorp common stock of $32,012,610 and $31,045,790, respectively.
The Plan also invests in a money market mutual fund of First American Funds, Inc.,
which is managed by the Company.
6. Tax Status
The
Plan has received a determination letter from the IRS dated July 13, 2017, stating that the Plan is qualified under Section 401(a) of the Code and therefore, the related trust is exempt from taxation. Subsequent to this determination by
the IRS, the Plan was amended. The Plan is required to operate in conformity with the Code to maintain its qualified status. The Plan Administrator believes the Plan is being operated in compliance with the applicable requirements of the Code and
therefore, believes the Plan, as amended, is qualified and the related trust is tax-exempt.
Accounting principles
generally accepted in the United States require plan management to evaluate uncertain tax positions taken by the Plan. The financial statement effects of a tax position are recognized when the position is more likely than not, based on the technical
merits, to be sustained upon examination by the IRS. The Plan Administrator has analyzed the tax positions taken by the Plan, and has concluded that as of December 31, 2022, there are no uncertain positions taken or expected to be taken. The
Plan has recognized no interest or penalties related to uncertain tax positions. The Plan is subject to routine audits by taxing jurisdictions; however, there are currently no audits for any tax periods in progress.
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