Wells Fargo 2006 Annual Report Download - page 96

94
(in millions) Before After
adoption adoption
of FAS 158 Adjustments of FAS 158
Other assets $ 30,000 $(457) $ 29,543
Total assets 482,453 (457) 481,996
Accrued expenses and other liabilities 25,958 (55) 25,903
Total liabilities 436,175 (55) 436,120
Cumulative other comprehensive income 704 (402) 302
Total stockholders’ equity 46,278 (402) 45,876
Total liabilities and stockholders’ equity 482,453 (457) 481,996
Note 15: Employee Benefits and Other Expenses
Employee Benefits
We sponsor noncontributory qualified defined benefit
retirement plans including the Cash Balance Plan. The Cash
Balance Plan is an active plan that covers eligible employees
(except employees of certain subsidiaries).
Under the Cash Balance Plan, eligible employees’ Cash
Balance Plan accounts are allocated a compensation credit
based on a percentage of their certified compensation. The
compensation credit percentage is based on age and years of
credited service. In addition, investment credits are allocated
to participants quarterly based on their accumulated balances.
Employees become vested in their Cash Balance Plan
accounts after completing five years of vesting service or
reaching age 65, if earlier.
We did not make a contribution in 2006 to our Cash
Balance Plan because a contribution was not required and
the Plan was well-funded. Although we will not be required
to make a contribution in 2007 for the Cash Balance Plan,
our decision on how much to contribute, if any, will be
based on the maximum deductible contribution under the
Internal Revenue Code, which has not yet been determined,
and other factors, including the actual investment performance
of plan assets during 2007. Given these uncertainties,
we cannot estimate at this time the amount that we will
contribute in 2007 to the Cash Balance Plan. The total
amount contributed for our other pension plans in 2006
was $50 million. For the unfunded nonqualified pension
plans and postretirement benefit plans, we will contribute
the minimum required amount in 2007, which equals the
benefits paid under the plans. In 2006, we paid $74 million
in benefits for the postretirement plans, which included
$35 million in retiree contributions and $33 million for
the unfunded pension plans.
We sponsor defined contribution retirement plans
including the 401(k) Plan. Under the 401(k) Plan, after
one month of service, eligible employees may contribute
up to 25% of their pre-tax certified compensation, although
there may be a lower limit for certain highly compensated
employees in order to maintain the qualified status of the
401(k) Plan. Eligible employees who complete one year of
service are eligible for matching company contributions,
which are generally a 100% match up to 6% of an employee’s
certified compensation. The matching contributions generally
vest over four years.
Expenses for defined contribution retirement plans were
$373 million, $370 million and $356 million in 2006,
2005 and 2004, respectively.
We provide health care and life insurance benefits for
certain retired employees and reserve the right to terminate
or amend any of the benefits at any time.
The information set forth in the following tables is
based on current actuarial reports using the measurement
date of November 30 for our pension and postretirement
benefit plans.
On September 29, 2006, the FASB issued FAS 158,
Employers’ Accounting for Defined Benefit Pension and
Other Postretirement Plans – an amendment of FASB
Statements No. 87, 88, 106, and 132(R), which requires us
to recognize in our balance sheet as of December 31, 2006,
the funded status of our pension and other postretirement
plans. Beginning January 1, 2007, we will be required to
recognize changes in our plans’ funded status in the year
in which the changes occur in other comprehensive income.
We adopted FAS 158 effective December 31, 2006. The
following table provides the incremental effect of adopting
FAS 158 on individual line items in the balance sheet at
December 31, 2006.