Wells Fargo 2010 Annual Report Download - page 196

We are authorized to issue 20 million shares of preferred stock
and 4 million shares of preference stock, both without par value.
Preferred shares outstanding rank senior to common shares
both as to dividends and liquidation preference but have no
general voting rights. We have not issued any preference shares
under this authorization. If issued, preference shares would be
limited to one vote per share. Our total issued and outstanding
preferred stock includes Dividend Equalization Preference
(DEP) shares and Series J, K and L, which are presented in the
table below, and Employee Stock Ownership Plan (ESOP)
Cumulative Convertible Preferred Stock, which is presented in
the table on the following page.
Note 17: Preferred Stock
December 31, 2010 and 2009
Liquidation Shares
preference Shares issued and Carrying
(in millions, except shares and liquidation preference per share) per share authorized outstanding Par value value Discount
DEP Shares
Dividend Equalization Preferred Shares $ 10 97,000 96,546 $ - - -
Series J (1)
8.00% Non-Cumulative Perpetual Class A Preferred Stock 1,000 2,300,000 2,150,375 2,150 1,995 155
Series K (1)
7.98% Fixed-to-Floating Non-Cumulative Perpetual Class A Preferred
Stock 1,000 3,500,000 3,352,000 3,352 2,876 476
Series L (1)
7.50% Non-Cumulative Perpetual Convertible Class A Preferred Stock 1,000 4,025,000 3,968,000 3,968 3,200 768
Total 9,922,000 9,566,921 $ 9,470 8,071 1,399
(1) Preferred shares qualify as Tier 1 capital.
In addition to the preferred stock issued and outstanding
described in the table above, at December 31, 2010, we have the
following preferred stock authorized with no shares issued and
outstanding:
• Series A – Non-Cumulative Perpetual Preferred Stock,
Series A, $100,000 liquidation preference per share,
25,001 shares authorized
• Series B – Non-Cumulative Perpetual Preferred Stock,
Series B, $100,000 liquidation preference per share, 17,501
shares authorized
• Series G – 7.25% Class A Preferred Stock, Series G,
$15,000 liquidation preference per share, 50,000 shares
authorized
• Series H – Floating Class A Preferred Stock, Series H,
$20,000 liquidation preference per share, 50,000 shares
authorized
• Series I – 5.80% Fixed to Floating Class A Preferred Stock,
Series I, $100,000 liquidation preference per share,
25,010 shares authorized
We may issue preferred stock for Series A ($2.5 billion in
March 2013), Series B ($1.8 billion in September 2013), and
Series I ($2.5 billion in March 2011) to unconsolidated wholly-
owned trusts. The issuance of the preferred stock is contingent
upon the sale of our income trust securities held by these trusts
to third party investors. See Note 8 for additional information on
our trust preferred security structures and Note 13 for
information about our income trust notes. We have no
commitment to issue Series G or H preferred stock.
In December 2009, we redeemed the Series D Preferred
Stock, which had been issued in October 2008 to the United
States Department of the Treasury. We paid $25.0 billion, which
was equal to the liquidation preference of the stock. In
connection with the redemption, we fully accreted the remaining
discount at the time of redemption of $1.9 billion.
194