Wells Fargo 2009 Annual Report Download - page 112

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
Note 2: Business Combinations (continued)
Employee Contract Facilities
(in millions) termination termination related Total
Balance, December 31, 2008 $ 57 13 129 199
Purchase accounting adjustments (1) 596 61 354 1,011
Cash payments/utilization (298) (16) (139) (453)
Balance, December 31, 2009 $ 355 58 344 757
(1) Certain purchase accounting adjustments have been refined during 2009 as additional information became available.
(in millions) Date Assets
2009
Capital TempFunds, Fort Lauderdale, Florida March 2 $74
Other (1) Various 39
$ 113
2008
Flatiron Credit Company, Inc., Denver, Colorado April 30 $ 332
Transcap Associates, Inc., Chicago, Illinois June 27 22
United Bancorporation of Wyoming, Inc., Jackson, Wyoming (2) July 1 2,110
Farmers State Bank of Fort Morgan Colorado, Fort Morgan, Colorado December 6 186
Century Bancshares, Inc., Dallas, Texas December 31 1,604
Wells Fargo Merchant Services, LLC (3) December 31 1,251
Other (4) Various 52
$ 5,557
2007
Placer Sierra Bancshares, Sacramento, California June 1 $ 2,644
Certain assets of The CIT Group/Equipment Financing, Inc., Tempe, Arizona June 29 2,888
Greater Bay Bancorp, East Palo Alto, California October 1 8,204
Certain Illinois branches of National City Bank, Cleveland, Ohio December 7 61
Other (5) Various 61
$13,858
(1) Consists of eight acquisitions of insurance brokerage businesses.
(2) Consists of five affiliated banks of United Bancorporation of Wyoming, Inc., located in Wyoming and Idaho, and certain assets and liabilities of
United Bancorporation of Wyoming, Inc.
(3) Represents a step acquisition resulting from the increase in Wells Fargo’s ownership from a 47.5% interest to a 60% interest in the
Wells Fargo Merchant Services, LLC joint venture.
(4) Consists of 12 acquisitions of insurance brokerage businesses.
(5) Consists of six acquisitions of insurance brokerage and third party health care payment processing businesses.
We regularly explore opportunities to acquire financial
services companies and businesses. Generally, we do not
make a public announcement about an acquisition opportunity
until a definitive agreement has been signed.
In addition to the 2008 Wachovia acquisition, business
combinations completed in 2009, 2008 and 2007 are
presented below.
For information on additional consideration related to
acquisitions, which is considered to be a guarantee, see
Note 14 in this Report.
The increase in goodwill includes the recognition of
additional types of costs associated with involuntary employee
termination, contract terminations and closing duplicate
facilities and have been allocated to the purchase price.
These costs were recorded throughout 2009 as part of the
further integration of Wachovia’s employees, locations and
operations as management finalized integration plans. The
following table summarizes exit reserves associated with the
Wachovia acquisition.