MI » Topics » 14. Short-term Borrowings

These excerpts taken from the MI 10-K filed Feb 29, 2008.

14. Short-term Borrowings

 

Short-term borrowings at December 31 were:

 

     2007    2006

Federal funds purchased and security repurchase agreements

   $ 2,262,355    $ 2,838,618

Cash flow hedge—Federal funds

     —        138
             

Federal funds purchased and security repurchase agreements

     2,262,355      2,838,756

U.S. Treasury demand notes

     98,113      36,721

U.S. Treasury demand notes—term

     2,150,000      —  

Bank notes

     1,227,659      —  

Commercial paper

     798,986      521,549

Federal Home Loan Bank (FHLB) notes payable

     260,000      200,000

Other

     13,897      11,956
             

Subtotal

     6,811,010      3,608,982

Current maturities of long-term borrowings

     1,665,372      2,815,753
             

Total short-term borrowings

   $ 8,476,382    $ 6,424,735
             

 

U.S. Treasury demand notes—term represent a term note issued by the U.S. Treasury for treasury, tax and loan. The term of this note was five days.

 

During 2007, holders of approximately $1.2 billion of the Corporation’s senior bank notes—Extendible Monthly Securities elected not to extend. As a result, the notes are due between August 2008 and October 2008 and, accordingly were reclassified from long-term borrowings to short-term borrowings. This reclassification is considered a non-cash transaction for purposes of the Consolidated Statements of Cash Flows.

 

The Corporation issues commercial paper in order to meet short-term funding needs. Maturities of commercial paper range from 1 day to 270 days. At December 31, 2007, commercial paper in the amount of $244,739 represented obligations of M&I LLC that existed prior to the Separation. As of November 1, 2007, the commercial paper program for M&I LLC was closed and a new commercial paper program was established for the Corporation.

 

At December 31, 2007, the FHLB short-term notes payable with an interest rate of 4.21%, matured on January 2, 2008. The Corporation was required to pledge mortgage related assets as collateral to the FHLB to secure the borrowing.

 

85


Table of Contents

Notes to Consolidated Financial Statements—(Continued)

 

December 31, 2007, 2006, and 2005 ($000’s except share data)

 

14. Short-term Borrowings

 

Short-term borrowings at December 31 were:

 


















































































































































   2007  2006

Federal funds purchased and security repurchase agreements

  $2,262,355  $2,838,618

Cash flow hedge—Federal funds

   —     138
        

Federal funds purchased and security repurchase agreements

   2,262,355   2,838,756

U.S. Treasury demand notes

   98,113   36,721

U.S. Treasury demand notes—term

   2,150,000   —  

Bank notes

   1,227,659   —  

Commercial paper

   798,986   521,549

Federal Home Loan Bank (FHLB) notes payable

   260,000   200,000

Other

   13,897   11,956
        

Subtotal

   6,811,010   3,608,982

Current maturities of long-term borrowings

   1,665,372   2,815,753
        

Total short-term borrowings

  $8,476,382  $6,424,735
        

 

U.S. Treasury demand
notes—term represent a term note issued by the U.S. Treasury for treasury, tax and loan. The term of this note was five days.

 

STYLE="margin-top:0px;margin-bottom:0px; text-indent:4%">During 2007, holders of approximately $1.2 billion of the Corporation’s senior bank notes—Extendible Monthly Securities elected not to extend.
As a result, the notes are due between August 2008 and October 2008 and, accordingly were reclassified from long-term borrowings to short-term borrowings. This reclassification is considered a non-cash transaction for purposes of the Consolidated
Statements of Cash Flows.

 

The Corporation issues commercial
paper in order to meet short-term funding needs. Maturities of commercial paper range from 1 day to 270 days. At December 31, 2007, commercial paper in the amount of $244,739 represented obligations of M&I LLC that existed prior to the
Separation. As of November 1, 2007, the commercial paper program for M&I LLC was closed and a new commercial paper program was established for the Corporation.

 

At December 31, 2007, the FHLB short-term notes payable with an interest rate of 4.21%, matured on January 2, 2008. The
Corporation was required to pledge mortgage related assets as collateral to the FHLB to secure the borrowing.

 


85







Table of Contents


Notes to Consolidated Financial Statements—(Continued)

STYLE="margin-top:0px;margin-bottom:-6px"> 

EXCERPTS ON THIS PAGE:

10-K (2 sections)
Feb 29, 2008
Wikinvest © 2006, 2007, 2008, 2009, 2010, 2011, 2012. Use of this site is subject to express Terms of Service, Privacy Policy, and Disclaimer. By continuing past this page, you agree to abide by these terms. Any information provided by Wikinvest, including but not limited to company data, competitors, business analysis, market share, sales revenues and other operating metrics, earnings call analysis, conference call transcripts, industry information, or price targets should not be construed as research, trading tips or recommendations, or investment advice and is provided with no warrants as to its accuracy. Stock market data, including US and International equity symbols, stock quotes, share prices, earnings ratios, and other fundamental data is provided by data partners. Stock market quotes delayed at least 15 minutes for NASDAQ, 20 mins for NYSE and AMEX. Market data by Xignite. See data providers for more details. Company names, products, services and branding cited herein may be trademarks or registered trademarks of their respective owners. The use of trademarks or service marks of another is not a representation that the other is affiliated with, sponsors, is sponsored by, endorses, or is endorsed by Wikinvest.
Powered by MediaWiki