Wells Fargo 2010 Annual Report Download - page 123

We regularly explore opportunities to acquire financial services
companies and businesses. Generally, we do not make a public
announcement about an acquisition opportunity until a
definitive agreement has been signed. For information on
additional consideration related to acquisitions, which is
considered to be a guarantee, see Note 14.
Note 2: Business Combinations
In addition to the 2008 Wachovia acquisition, business
combinations completed in 2010, 2009 and 2008 are presented
below. At December 31, 2010, we had no pending business
combinations.
(in millions) Date Assets
2010
Certain assets of GMAC Commercial Finance, LLC, New York, New York April 30 $ 430
Other (1) Various 40
$ 470
2009
Capital TempFunds, Fort Lauderdale, Florida March 2 $ 74
Other (2) Various 39
$ 113
2008
Flatiron Credit Company, Inc., Denver, Colorado April 30 $ 332
Transcap Associates, Inc., Chicago, Illinois June 27 22
United Bancorporation of Wyoming, Inc., Jackson, Wyoming (3) July 1 2,110
Farmers State Bank of Fort Morgan Colorado, Fort Morgan, Colorado December 6 186
Century Bancshares, Inc., Dallas, Texas December 31 1,604
Wells Fargo Merchant Services, LLC (4) December 31 1,251
Other (5) Various 52
$ 5,557
(1) Consists of five acquisitions of insurance brokerage businesses.
(2) Consists of eight acquisitions of insurance brokerage businesses.
(3) Consists of five affiliated banks of United Bancorporation of Wyoming, Inc., located in Wyoming and Idaho, and certain assets and liabilities of United Bancorporation of
Wyoming, Inc.
(4) Represents a step acquisition resulting from the increase in Wells Fargo's ownership from a 47.5% interest to a 60% interest in the Wells Fargo Merchant Services, LLC joint
venture.
(5) Consists of 12 acquisitions of insurance brokerage businesses.
On December 31, 2008, Wells Fargo acquired Wachovia. The
purchase accounting for the Wachovia acquisition was finalized
as of December 31, 2009, which included costs associated with
involuntary employee termination, contract terminations and
closing duplicate facilities. These exit costs were estimates and
subject to changes as the exit plans were executed. The final exit
costs as of December 31, 2010, were less than originally
estimated, resulting in the reversal of exit cost accruals, with the
offset reducing the amount of goodwill recorded with the
Wachovia acquisition by $123 million.
The following table summarizes the usage of the exit cost
accruals and changes in estimates.
Employee Contract Facilities
(in millions)
termination
termination related Total
Balance, December 31, 2008 $ 57 13 129 199
Purchase accounting adjustments (1) 596 61 354 1,011
Cash payments/utilization (298) (16) (139) (453)
Balance, December 31, 2009 $ 355 58 344 757
Cash payments/utilization (300) (56) (278) (634)
Change in estimates (55) (2) (66) (123)
Balance, December 31, 2010 $ - - - -
(1) Certain purchase accounting adjustments have been refined during 2009 as additional information became available.
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