Wells Fargo 2012 Annual Report Download - page 51

Contractual Cash Obligations
In addition to the contractual commitments and arrangements
previously described, which, depending on the nature of the
obligation, may or may not require use of our resources, we
enter into other contractual obligations that may require future
cash payments in the ordinary course of business, including
debt issuances for the funding of operations and leases for
premises and equipment.
Table 15 summarizes these contractual obligations as of
December 31, 2012, excluding the projected cash payments for
obligations for short-term borrowing arrangements and
pension and postretirement benefit plans. More information
on those obligations is in Note 12 (Short-Term Borrowings)
and Note 20 (Employee Benefits and Other Expenses) to
Financial Statements in this Report.
Table 15: Contractual Cash Obligations
Note(s) to More
Financial Less than 1-3 3-5 than Indeterminate
(in millions) Statements 1 year years years 5 years maturity Total
Contractual payments by period:
Deposits (1) 11 $ 56,921 20,197 9,030 3,959 912,728 1,002,835
Long-term debt (2) 7, 13 15,961 28,342 31,318 51,758 - 127,379
Interest (3) 3,056 4,415 3,206 17,498 - 28,175
Operating leases 7 1,311 2,154 1,465 2,594 - 7,524
Unrecognized tax obligations 21 19 - - - 2,725 2,744
Commitments to purchase debt securities 1,523 - - - - 1,523
Purchase and other obligations (4) 518 727 57 10 - 1,312
Total contractual obligations $ 79,309 55,835 45,076 75,819 915,453 1,171,492
(1) Includes interest-bearing and noninterest-bearing checking, and market rate and other savings accounts.
(2) Balances are presented net of unamortized debt discounts and premiums and purchase accounting adjustments.
(3) Represents the future interest obligations related to interest-bearing time deposits and long-term debt in the normal course of business including a net reduction of
$17 billion related to hedges used to manage interest rate risk. These interest obligations assume no early debt redemption. We estimated variable interest rate payments
using December, 31 2012 rates, which we held constant until maturity. We have excluded interest related to structured notes where our payment obligation is contingent on
the performance of certain benchmarks.
(4) Represents agreements to purchase goods or services.
We are subject to the income tax laws of the U.S., its states
and municipalities, and those of the foreign jurisdictions in
which we operate. We have various unrecognized tax
obligations related to these operations that may require future
cash tax payments to various taxing authorities. Because of
their uncertain nature, the expected timing and amounts of
these payments generally are not reasonably estimable or
determinable. We attempt to estimate the amount payable in
the next 12 months based on the status of our tax examinations
and settlement discussions. See Note 21 (Income Taxes) to
Financial Statements in this Report for more information.
We enter into derivatives, which create contractual
obligations, as part of our interest rate risk management
process for our customers or for other trading activities. See
the “Risk Management – Asset/Liability” section and Note 16
(Derivatives) to Financial Statements in this Report for more
information.
Transactions with Related Parties
The Related Party Disclosures topic of the Codification requires
disclosure of material related party transactions, other than
compensation arrangements, expense allowances and other
similar items in the ordinary course of business. We had no
related party transactions required to be reported for the years
ended December 31, 2012, 2011 and 2010.
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