Wells Fargo 2015 Annual Report Download - page 59

Contractual Cash 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 that may require future cash
payments in the ordinary course of business, including debt
issuances for the funding of operations and leases for premises
and equipment.
Table 15: Contractual Cash Obligations
Table 15 summarizes these contractual obligations as of
December 31, 2015, excluding the projected cash payments for
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 20
(Employee Benefits and Other Expenses) to Financial
Statements in this Report.
December 31, 2015
(in millions)
Note(s) to
Financial
Statements
Less than
1 year
1-3
years
3-5
years
More
than
5 years
Indeterminate
maturity Total
Contractual payments by period:
Deposits (1)
Long-term debt (2)
Interest (3)
Operating leases
Unrecognized tax obligations
Commitments to purchase debt
and equity securities (4)
Purchase and other obligations (5)
11
7, 13
7
21
$ 81,846
31,904
3,143
1,131
115
2,154
575
9,192
44,914
4,823
1,928
—
509
483
3,321
41,638
3,650
1,409
—
57
185
4,155
81,080
15,369
2,234
—
—
82
1,124,798
—
—
—
2,581
—
—
1,223,312
199,536
26,985
6,702
2,696
2,720
1,325
Total contractual obligations $ 120,868 61,849 50,260 102,920 1,127,379 1,463,276
(1) Includes interest-bearing and noninterest-bearing checking, and market rate and other savings accounts.
(2) Balances are presented net of unamortized debt discounts and premiums and purchase accounting adjustments.
(3) Represents the future interest obligations related to interest-bearing time deposits and long-term debt in the normal course of business including a net reduction of
$25.7 billion related to hedges used to manage interest rate risk. These interest obligations assume no early debt redemption. We estimated variable interest rate
payments using December 31, 2015, rates, which we held constant until maturity. We have excluded interest related to structured notes where our payment obligation is
contingent on the performance of certain benchmarks.
(4) Includes unfunded commitments to purchase debt and equity investments, excluding trade date payables, of $573 million and $2.1 billion, respectively. Our unfunded
equity commitments include certain investments subject to the Volcker Rule, which we expect to divest in the near future. For additional information regarding the Volcker
Rule, see the "Regulatory Reform" section in this Report. We have presented predominantly all of our contractual obligations on equity investments above in the maturing
in less than one year category as there are no specified contribution dates in the agreements. These obligations may be requested at any time by the investment manager.
(5) Represents agreements related to unrecognized obligations to purchase goods or services.
We are subject to the income tax laws of the U.S., its states Transactions with Related Parties
and municipalities, and those of the foreign jurisdictions in The Related Party Disclosures topic of the Accounting Standards
which we operate. We have various unrecognized tax obligations Codification (ASC) 850 requires disclosure of material related
related to these operations that may require future cash tax party transactions, other than compensation arrangements,
payments to various taxing authorities. Because of their expense allowances and other similar items in the ordinary
uncertain nature, the expected timing and amounts of these course of business. Based on ASC 850, we had no transactions
payments generally are not reasonably estimable or required to be reported for the years ended December 31, 2015,
determinable. We attempt to estimate the amount payable in the 2014 and 2013. The Company has included within its disclosures
next 12 months based on the status of our tax examinations and information on its equity investments, relationships with
settlement discussions. See Note 21 (Income Taxes) to Financial variable interest entities, and employee benefit plan
Statements in this Report for more information. arrangements. See Note 7 (Premises, Equipment, Lease
Commitments and Other Assets), Note 8 (Securitizations and
Variable Interest Entities) and Note 20 (Employee Benefits and
Other Expenses) to Financial Statements in this Report.
Wells Fargo & Company
57