Wells Fargo 2005 Annual Report Download - page 85

Download and view the complete annual report

Please find page 85 of the 2005 Wells Fargo annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 120

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120

83
We are authorized to issue 20 million shares of preferred
stock and 4 million shares of preference stock, both without
par value. Preferred shares outstanding rank senior to com-
mon shares both as to dividends and liquidation preference
but have no general voting rights. We have not issued any
preference shares under this authorization.
ESOP CUMULATIVE CONVERTIBLE PREFERRED STOCK
All shares of our ESOP (Employee Stock Ownership Plan)
Cumulative Convertible Preferred Stock (ESOP Preferred
Stock) were issued to a trustee acting on behalf of the
Wells Fargo & Company 401(k) Plan (the 401(k) Plan).
Dividends on the ESOP Preferred Stock are cumulative
from the date of initial issuance and are payable quarterly
Note 13: Preferred Stock
at annual rates ranging from 8.50% to 12.50%, depending
upon the year of issuance. Each share of ESOP Preferred
Stock released from the unallocated reserve of the 401(k)
Plan is converted into shares of our common stock based
on the stated value of the ESOP Preferred Stock and the
then current market price of our common stock. The ESOP
Preferred Stock is also convertible at the option of the holder
at any time, unless previously redeemed. We have the option
to redeem the ESOP Preferred Stock at any time, in whole or
in part, at a redemption price per share equal to the higher
of (a) $1,000 per share plus accrued and unpaid dividends or
(b) the fair market value, as defined in the Certificates of
Designation for the ESOP Preferred Stock.
(1) Liquidation preference $1,000.
(2) In accordance with the American Institute of Certified Public Accountants (AICPA) Statement of Position 93-6, Employers’ Accounting for Employee Stock Ownership
Plans, we recorded a corresponding charge to unearned ESOP shares in connection with the issuance of the ESOP Preferred Stock.The unearned ESOP shares are
reduced as shares of the ESOP Preferred Stock are committed to be released. For information on dividends paid, see Note 14.
Shares issued Carrying amount
and outstanding (in millions) Adjustable
December 31, December 31, dividend rate
2005 2004 2005 2004 Minimum Maximum
ESOP Preferred Stock (1):
2005 102,184 —$ 102 $ — 9.75% 10.75%
2004 74,880 89,420 75 90 8.50 9.50
2003 52,643 60,513 53 61 8.50 9.50
2002 39,754 46,694 40 47 10.50 11.50
2001 28,263 34,279 28 34 10.50 11.50
2000 19,282 24,362 19 24 11.50 12.50
1999 6,368 8,722 69 10.30 11.30
1998 1,953 2,985 23 10.75 11.75
1997 136 2,206 —2 9.50 10.50
1996 — 382 ——8.50 9.50
Total ESOP Preferred Stock 325,463 269,563 $ 325 $ 270
Unearned ESOP shares (2) $(348) $(289)