What was the primary reason for filing this amendment (10-K/A)?

The primary reason for filing this amendment was to update the company's accounting for automobile leases to comply with new guidance from the Emerging Issues Task Force (EITF) Topic D-107. This change reclassified certain auto leases from direct financing leases to operating leases.

Did the accounting change for auto leases have a material impact on Wells Fargo's financial results?

No, the company stated that the implementation of the guidance from EITF Topic D-107 did not have a material effect on its results of operations or financial position for any period in which such leasing activities were present.

How did Wells Fargo's financial performance in 2002 compare to 2001?

Wells Fargo experienced a significant improvement in financial performance in 2002 compared to 2001. Net income rose to $5.43 billion from $3.41 billion, and diluted earnings per share increased to $3.16 from $1.97. This growth was driven by a 20% increase in total revenue, with strong contributions from both net interest income and noninterest income, including higher mortgage origination volumes and insurance income.

What is the company's stance on future acquisitions?

Wells Fargo actively explores opportunities to acquire banking institutions and other financial services companies. The company continually engages in discussions regarding possible acquisitions and intends to continue pursuing such opportunities to expand its business.

WELLS FARGO & COMPANY/MN 10-K FY2002 Annual Report

Summary

Wells Fargo & Company/MN (WFC) filed an amendment to its 2002 10-K report in January 2004, primarily to address changes in accounting for automobile leases following new guidance from the Emerging Issues Task Force (EITF) Topic D-107. This accounting change, which reclassified auto leases from direct financing leases to operating leases, did not materially impact the company's financial position or results of operations. Financially, the report reflects a robust performance for the year ended December 31, 2002. Net income was $5.43 billion, a significant increase from $3.41 billion in 2001. Earnings per diluted share rose to $3.16 from $1.97 in the prior year. The company demonstrated strong revenue growth of 20% year-over-year, driven by increases in both net interest income and noninterest income. Key drivers for this growth included higher mortgage origination volume, increased credit card fees, and strong insurance business performance, partially offset by a decline in operating lease income and net losses from equity investments. The company maintained strong capital ratios, exceeding regulatory requirements, and continued its strategy of growth through acquisitions.

Key Highlights

1Net income for 2002 was $5.43 billion, a substantial increase from $3.41 billion in 2001, reflecting strong operational performance.
2Diluted earnings per common share grew to $3.16 in 2002 from $1.97 in 2001.
3Total revenue increased by 20% to $25.25 billion in 2002, driven by growth in net interest income and noninterest income.
4The company adopted new accounting guidance (EITF Topic D-107) for automobile leases, reclassifying them from direct financing to operating leases, with no material impact on financial results.
5Capital ratios remained strong, with Tier 1 risk-based capital at 7.70% and total risk-based capital at 11.44% as of December 31, 2002, exceeding regulatory minimums.
6Mortgage banking activities saw increased origination and closing fees, though net servicing fees experienced a loss due to increased amortization and impairment provisions on mortgage servicing rights.
7The company continued its acquisition strategy, completing several transactions during the year to expand its business.

WELLS FARGO & COMPANY/MN Annual Report (Amendment), Year Ended Dec 31, 2002

Summary

Key Highlights

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