Wells Fargo 2008 Annual Report Download - page 160

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
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, 2008
Dividends from subsidiaries:
Bank $1,806 $ — $ — $(1,806) $ —
Nonbank 326 — — (326) —
Interest income from loans 2 5,275 22,417 (62) 27,632
Interest income from subsidiaries 2,892 — — (2,892) —
Other interest income 241 108 7,051 (134) 7,266
Total interest income 5,267 5,383 29,468 (5,220) 34,898
Deposits — — 4,966 (445) 4,521
Short-term borrowings 475 220 1,757 (974) 1,478
Long-term debt 2,957 1,807 661 (1,669) 3,756
Total interest expense 3,432 2,027 7,384 (3,088) 9,755
NET INTEREST INCOME 1,835 3,356 22,084 (2,132) 25,143
Provision for credit losses — 2,970 13,009 — 15,979
Net interest income after provision for credit losses 1,835 386 9,075 (2,132) 9,164
NONINTEREST INCOME
Fee income – nonaffiliates — 437 10,110 — 10,547
Other (101) 168 8,201 (2,061) 6,207
Total noninterest income (101) 605 18,311 (2,061) 16,754
NONINTEREST EXPENSE
Salaries and benefits (385) 719 12,606 — 12,940
Other 15 1,119 10,648 (2,061) 9,721
Total noninterest expense (370) 1,838 23,254 (2,061) 22,661
INCOME BEFORE INCOME TAX EXPENSE
(BENEFIT) AND EQUITY IN UNDISTRIBUTED
INCOME OF SUBSIDIARIES 2,104 (847) 4,132 (2,132) 3,257
Income tax expense (benefit) (83) (289) 974 — 602
Equity in undistributed income of subsidiaries 468 — — (468) —
NET INCOME (LOSS) $2,655 $ (558) $ 3,158 $(2,600) $ 2,655