Wells Fargo 2007 Annual Report Download - page 126

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123
Note 25: Condensed Consolidating Financial Statements
Following are the condensed consolidating financial statements
of the Parent and Wells Fargo Financial, Inc. and its wholly-
owned subsidiaries (WFFI). In 2002, the Parent issued a full
and unconditional guarantee of all outstanding term debt
securities and commercial paper of WFFI. WFFI ceased filing
periodic reports under the Securities Exchange Act of 1934
and is no longer a separately rated company. The Parent also
guaranteed all outstanding term debt securities of Wells Fargo
Financial Canada Corporation (WFFCC), WFFI’s wholly-owned
Canadian subsidiary. WFFCC has continued to issue term debt
securities and commercial paper in Canada, unconditionally
guaranteed by the Parent. The Wells Fargo Financial business
segment for management reporting (see Note 24) consists of
WFFI and other affiliated consumer finance entities managed
by WFFI that are included within other consolidating
subsidiaries in the following tables.
Condensed Consolidating Statement of Income
(in millions) Parent WFFI Other Eliminations Consolidated
consolidating Company
subsidiaries
Year ended December 31, 2007
Dividends from subsidiaries:
Bank $4,587 $ — $ — $(4,587) $ —
Nonbank 398 — — (398) —
Interest income from loans — 5,643 23,453 (56) 29,040
Interest income from subsidiaries 3,693 — — (3,693) —
Other interest income 152 115 5,875 (5) 6,137
Total interest income 8,830 5,758 29,328 (8,739) 35,177
Deposits — — 8,793 (641) 8,152
Short-term borrowings 444 442 1,626 (1,267) 1,245
Long-term debt 3,830 1,923 900 (1,847) 4,806
Total interest expense 4,274 2,365 11,319 (3,755) 14,203
NET INTEREST INCOME 4,556 3,393 18,009 (4,984) 20,974
Provision for credit losses — 969 3,970 — 4,939
Net interest income after provision for credit losses 4,556 2,424 14,039 (4,984) 16,035
NONINTEREST INCOME
Fee income – nonaffiliates — 394 10,233 — 10,627
Other 117 140 9,060 (1,528) 7,789
Total noninterest income 117 534 19,293 (1,528) 18,416
NONINTEREST EXPENSE
Salaries and benefits 61 1,229 12,078 — 13,368
Other 291 1,119 9,573 (1,527) 9,456
Total noninterest expense 352 2,348 21,651 (1,527) 22,824
INCOME BEFORE INCOME TAX EXPENSE
(BENEFIT) AND EQUITY IN UNDISTRIBUTED
INCOME OF SUBSIDIARIES 4,321 610 11,681 (4,985) 11,627
Income tax expense (benefit) (257) 246 3,581 — 3,570
Equity in undistributed income of subsidiaries 3,479 — — (3,479) —
NET INCOME $8,057 $ 364 $ 8,100 $(8,464) $ 8,057