Wells Fargo 2010 Annual Report Download - page 55

Contractual Obligations
In addition to the contractual commitments and arrangements
previously described, which, depending on the nature of the
obligation, may or may not require use of our resources, we
enter into other contractual obligations in the ordinary course
of business, including debt issuances for the funding of
operations and leases for premises and equipment.
Table 16 summarizes these contractual obligations as of
December 31, 2010, excluding obligations for short-term
borrowing arrangements and pension and postretirement
benefit plans. More information on those obligations is in
Note 12 (Short-Term Borrowings) and Note 19 (Employee
Benefits and Other Expenses) to Financial Statements in this
Report.
Table 16: Contractual Obligations
Note(s) to More
Financial Less than 1-3 3-5 than Indeterminate
(in millions) Statements 1 year years years 5 years maturity Total
Contractual payments by period:
Deposits 11 $ 108,232 33,601 10,855 2,500 692,754 (1) 847,942
Long-term debt (2) 7, 13 36,223 35,529 19,585 65,646 - 156,983
Operating leases 7 1,134 2,334 1,732 3,405 - 8,605
Unrecognized tax obligations 20 22 - - - 2,630 2,652
Commitments to purchase debt securities 1,153 650 - - - 1,803
Purchase obligations (3) 383 278 40 1 - 702
Total contractual obligations $ 147,147 72,392 32,212 71,552 695,384 1,018,687
(1) Includes interest-bearing and noninterest-bearing checking, and market rate and other savings accounts.
(2) Includes obligations under capital leases of $26 million.
(3) Represents agreements to purchase goods or services.
We are subject to the income tax laws of the U.S., its states
and municipalities, and those of the foreign jurisdictions in
which we operate. We have various unrecognized tax
obligations related to these operations that may require future
cash tax payments to various taxing authorities. Because of
their uncertain nature, the expected timing and amounts of
these payments generally are not reasonably estimable or
determinable. We attempt to estimate the amount payable in
the next 12 months based on the status of our tax examinations
and settlement discussions. See Note 20 (Income Taxes) to
Financial Statements in this Report for more information.
We enter into derivatives, which create contractual
obligations, as part of our interest rate risk management
process for our customers or for other trading activities. See
the “Risk Management – Asset/Liability” section and Note 15
(Derivatives) to Financial Statements in this Report for more
information.
Transactions with Related Parties
The Related Party Disclosures topic of the Codification requires
disclosure of material related party transactions, other than
compensation arrangements, expense allowances and other
similar items in the ordinary course of business. We had no
related party transactions required to be reported for the years
ended December 31, 2010, 2009 and 2008.
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