Note 13: Long-Term Debt We issue long-term debt denominated in multiple currencies, predominantly in U.S. dollars. Our issuances have both fixed and floating interest rates. As a part of our overall interest rate risk management strategy, we often use derivatives to manage our exposure to interest rate risk. We also use derivatives to manage our exposure to foreign currency risk. As a result, the long-term debt presented below is primarily hedged in a fair value or cash flow hedge relationship. See Note 16 for further information on qualifying hedge contracts. Following is a summary of our long-term debt carrying values, reflecting unamortized debt discounts and premiums, and purchase accounting adjustments, where applicable. The interest rates displayed represent the range of contractual rates in effect at December 31, 2013. These interest rates do not include the effects of any associated derivatives designated in a hedge accounting relationship. | | | | | | | | | | | | | | | | | | | | | | December 31, | | | | | | | | | | | 2013 | | 2012 | | | | | | | | Maturity | Stated | | | | | | (in millions) | | date(s) | interest rate(s) | | | | | | Wells Fargo & Company (Parent only) | | | | | | | | Senior | | | | | | | | Fixed-rate notes | 2014-2038 | 1.00-6.75% | $ | 44,145 | | 44,623 | | Floating-rate notes | 2014-2048 | 0.00-3.598 | | 12,445 | | 10,996 | | Structured notes (1) | 2014-2053 | Varies | | 4,891 | | 3,633 | | | Total senior debt - Parent | | | | 61,481 | | 59,252 | | Subordinated | | | | | | | | Fixed-rate notes (2) | 2014-2044 | 3.45-7.574% | | 17,469 | | 11,340 | | Floating-rate notes | 2015-2016 | 0.576-0.614 | | 1,190 | | 1,165 | | | Total subordinated debt - Parent | | | | 18,659 | | 12,505 | | Junior subordinated | | | | | | | | Fixed-rate notes - hybrid trust securities | 2029-2068 | 5.95-7.95% | | 1,178 | | 4,221 | | Floating-rate notes | 2027 | 0.744-1.244 | | 263 | | 255 | | | Total junior subordinated debt - Parent (3) | | | | 1,441 | | 4,476 | | | | Total long-term debt - Parent (2) | | | | 81,581 | | 76,233 | | Wells Fargo Bank, N.A. and other bank entities (Bank) | | | | | | | | Senior | | | | | | | | Fixed-rate notes | 2015 | 0.75% | | 500 | | 1,331 | | Floating-rate notes | 2015-2053 | 0.00-0.522 | | 2,219 | | 170 | | Floating-rate extendible notes (4) | 2015 | 0.291-0.346 | | 10,749 | | 4,450 | | Fixed-rate advances - Federal Home Loan Bank (FHLB) (5) | 2014-2031 | 3.83 - 8.17 | | 160 | | 216 | | Floating-rate advances - FHLB (5) | 2018-2019 | 0.22-0.29 | | 19,000 | | 2,002 | | Structured notes (1) | 2014-2025 | Varies | | 13 | | 163 | | Capital leases (Note 7) | 2014-2025 | Varies | | 11 | | 12 | | | Total senior debt - Bank | | | | 32,652 | | 8,344 | | Subordinated | | | | | | | | Fixed-rate notes | 2014-2038 | 4.75-7.74% | | 10,725 | | 14,153 | | Floating-rate notes | 2014-2017 | 0.448-2.965 | | 1,616 | | 1,617 | | | Total subordinated debt - Bank | | | | 12,341 | | 15,770 | | Junior subordinated | | | | | | | | Floating-rate notes | 2027 | 0.811-0.894% | | 303 | | 294 | | | Total junior subordinated debt - Bank (3) | | | | 303 | | 294 | | Long-term debt issued by VIE - Fixed rate (6) | 2014-2047 | 0.00-7.00% | | 1,098 | | 1,542 | | Long-term debt issued by VIE - Floating rate (6) | 2015-2042 | 0.296-32.11 | | 1,230 | | 1,826 | | Mortgage notes and other debt (7) | 2014-2062 | 0.00-12.80 | | 16,874 | | 16,976 | | | | Total long-term debt - Bank | | | | 64,498 | | 44,752 | | | | | | | | | | | | | | | (continued on following page) | | | | | | | |
(continued from previous page) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | December 31, | | | | | | | | | | | 2013 | | 2012 | | | | | | | | Maturity | Stated | | | | | | (in millions) | | date(s) | interest rate(s) | | | | | | Other consolidated subsidiaries | | | | | | | | Senior | | | | | | | | Fixed-rate notes | 2014-2023 | 2.774-4.38% | | 6,543 | | 5,968 | | FixFloat notes | 2020 | 6.795% through 2015, varies | | 20 | | 20 | | | Total senior debt - Other consolidated subsidiaries | | | | 6,563 | | 5,988 | | Junior subordinated | | | | | | | | Floating-rate notes | 2027 | 0.736% | | 155 | | 155 | | | Total junior subordinated debt - Other | | | | | | | | | | consolidated subsidiaries (3) | | | | 155 | | 155 | | Long-term debt issued by VIE - Fixed rate (6) | 2015 | 5.16% | | 18 | | 105 | | Long-term debt issued by VIE - Floating rate (6) | 2015 | 1.544 | | 10 | | 10 | | Mortgage notes and other (7) | 2014-2022 | 1.54-6.00 | | 173 | | 136 | | | | Total long-term debt - Other consolidated subsidiaries | | | | 6,919 | | 6,394 | | | | | | Total long-term debt | | | $ | 152,998 | | 127,379 | | | | | | | | | | | | | | |
- Primarily consists of long-term notes where the performance of the note is linked to an embedded equity, commodity, or currency index, or basket of indices accounted for separately from the note as a free-standing derivative. For information on embedded derivatives, see Note 16 – Free-standing derivatives. In addition, a major portion consists of zero coupon callable notes where interest is paid as part of the final redemption amount.
- Includes fixed-rate subordinated notes issued by the Parent at a discount of $140 million in fourth quarter 2013 to effect a modification of Wells Fargo Bank, NA notes. These notes are carried at their par amount on the balance sheet of the Parent presented in Note 25.
- Represents junior subordinated debentures held by unconsolidated wholly-owned trusts formed for the sole purpose of issuing trust preferred securities. See Note 8 for additional information on our trust preferred security structures.
- Represents floating-rate extendible notes where holders of the notes may elect to extend the contractual maturity of all or a portion of the principal amount on a periodic basis.
- At December 31, 2013, Federal Home Loan Bank advances are secured by residential loan collateral. Outstanding advances at December 31, 2012, were secured by investment securities and residential loan collateral.
- For additional information on VIEs, see Note 8.
- Primarily related to securitizations and secured borrowings, see Note 8.
The aggregate carrying value of long-term debt that matures (based on contractual payment dates) as of December 31, 2013, in each of the following five years and thereafter, is presented in the following table. | | | | | | (in millions) | | Parent | Company | 2014 | $ | 8,535 | 12,800 | 2015 | | 8,684 | 26,531 | 2016 | | 15,734 | 19,732 | 2017 | | 9,122 | 13,114 | 2018 | | 7,937 | 26,867 | Thereafter | | 31,569 | 53,954 | | Total | $ | 81,581 | 152,998 |
As part of our long-term and short-term borrowing arrangements, we are subject to various financial and operational covenants. Some of the agreements under which debt has been issued have provisions that may limit the merger or sale of certain subsidiary banks and the issuance of capital stock or convertible securities by certain subsidiary banks. At December 31, 2013, we were in compliance with all the covenants. |