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Other Comprehensive Income
 12 Months Ended
Dec. 31, 2018
Cumulative Other Comprehensive Income Balances [Abstract] [Abstract]  
Other Comprehensive Income
Note 25:  Other Comprehensive Income 
Table 25.1 provides the components of other comprehensive income (OCI), reclassifications to net income by income statement line item, and the related tax effects.



Table 25.1: Summary of Other Comprehensive Income
 
Year ended December 31,
 
 
2018
 
 
2017
 
 
2016
 
(in millions)
Before 
 tax 

 
Tax 
 effect 

 
Net of 
 tax 

 
Before 
 tax 

 
Tax 
 effect 

 
Net of 
 tax 

 
Before 
 tax 

 
Tax 
 effect 

 
Net of 
 tax 

Debt securities (1):
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net unrealized gains (losses) arising during the period
$
(4,493
)
 
1,100

 
(3,393
)
 
2,719

 
(1,056
)
 
1,663

 
(3,458
)
 
1,302

 
(2,156
)
Reclassification of net (gains) losses to net income:
 
 
 
 


 
 
 
 
 


 
 
 
 
 


Interest income on debt securities (2)
357

 
(88
)
 
269

 
198

 
(75
)
 
123

 
7

 
(3
)
 
4

Net gains on debt securities
(108
)
 
27

 
(81
)
 
(479
)
 
181

 
(298
)
 
(942
)
 
355

 
(587
)
Net gains from equity securities (3)
—

 
—

 
—

 
(456
)
 
172

 
(284
)
 
(300
)
 
113

 
(187
)
Other noninterest income
(1
)
 
—

 
(1
)
 
—

 
—

 
—

 
(5
)
 
2

 
(3
)
Subtotal reclassifications to net income
248

 
(61
)

187


(737
)

278


(459
)

(1,240
)

467


(773
)
Net change
(4,245
)
 
1,039


(3,206
)
 
1,982

 
(778
)
 
1,204

 
(4,698
)
 
1,769

 
(2,929
)
Derivatives and hedging activities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Fair Value Hedges:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Change in fair value of excluded components on fair value hedges (4)
(254
)
 
63

 
(191
)
 
(253
)
 
95

 
(158
)
 
—

 
—

 
—

Cash Flow Hedges:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net unrealized gains (losses) arising during the period on cash flow hedges
(278
)
 
67

 
(211
)
 
(287
)
 
108

 
(179
)
 
177

 
(67
)
 
110

Reclassification of net (gains) losses to net income:
 
 
 
 


 
 
 
 
 


 
 
 
 
 


Interest income on loans
292

 
(72
)
 
220

 
(551
)
 
208

 
(343
)
 
(1,043
)
 
393

 
(650
)
Interest expense on long-term debt
2

 
—

 
2

 
8

 
(3
)
 
5

 
14

 
(5
)
 
9

Subtotal reclassifications
 to net income
294

 
(72
)

222


(543
)

205


(338
)

(1,029
)

388


(641
)
Net change
(238
)
 
58

 
(180
)
 
(1,083
)
 
408

 
(675
)
 
(852
)
 
321

 
(531
)
Defined benefit plans adjustments:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net actuarial and prior service gains (losses) arising during the period
(434
)
 
106

 
(328
)
 
49

 
(12
)
 
37

 
(52
)
 
(40
)
 
(92
)
Reclassification of amounts to noninterest expense and employee benefits (5):
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Amortization of net actuarial loss
127

 
(31
)
 
96

 
150

 
(57
)
 
93

 
153

 
(57
)
 
96

Settlements and other
126

 
(29
)
 
97

 
3

 
2

 
5

 
5

 
(1
)
 
4

Subtotal reclassifications to noninterest expense and employee benefits
253

 
(60
)
 
193

 
153

 
(55
)
 
98

 
158

 
(58
)
 
100

Net change
(181
)
 
46

 
(135
)
 
202

 
(67
)
 
135

 
106

 
(98
)
 
8

Foreign currency translation adjustments:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net unrealized gains (losses) arising during the period
(156
)
 
1

 
(155
)
 
96

 
3

 
99

 
(3
)
 
4

 
1

Net change
(156
)
 
1

 
(155
)
 
96

 
3

 
99

 
(3
)
 
4

 
1

Other comprehensive income (loss)
$
(4,820
)
 
1,144

 
(3,676
)
 
1,197

 
(434
)
 
763

 
(5,447
)
 
1,996

 
(3,451
)
Less: Other comprehensive loss from noncontrolling interests, net of tax
 
 
 
 
(2
)
 
 
 
 
 
(62
)
 
 
 
 
 
(17
)
Wells Fargo other comprehensive income (loss), net of tax
 
 
 
 
$
(3,674
)
 
 
 
 
 
825

 
 
 
 
 
(3,434
)
(1)
The years ended December 31, 2017 and 2016, include net unrealized gains (losses) arising during the period from equity securities of $81 million and $259 million and reclassification of net (gains) losses to net income related to equity securities of $(456) million and $(300) million, respectively. In connection with our adoption in first quarter 2018 of ASU 2016-01 – Financial Instruments – Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities, the year ended December 31, 2018, reflects net unrealized gains (losses) arising during the period and reclassification of net (gains) losses to net income from only debt securities.
(2)
Represents net unrealized gains and losses amortized over the remaining lives of securities that were transferred from the available-for-sale portfolio to the held-to-maturity portfolio.
(3)
Net gains from equity securities is presented for table presentation purposes. After our adoption of ASU 2016-01 – Financial Instruments – Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities on January 1, 2018, this line will not contain balances as realized and unrealized gains and losses on marketable equity investments will be recorded in earnings.
(4)
Represents changes in fair value of cross-currency swaps attributable to changes in cross-currency basis spreads, which are excluded from the assessment of hedge effectiveness and recorded in other comprehensive income.
(5)
Effective January 1, 2018, we adopted ASU 2017-07 – Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost. Accordingly, 2018 balances are reclassified to other noninterest expense on the consolidated statement of income. For 2017 and 2016, these balances were reclassified to employee benefits.

Table 25.2 provides the cumulative OCI balance activity on an after-tax basis.


Table 25.2: Cumulative OCI Balances
(in millions)
Debt
securities (1)

 
Derivatives 
 and 
 hedging 
 activities 

 
Defined 
 benefit 
 plans 
 adjustments 

 
Foreign 
 currency 
 translation 
adjustments 

 
Cumulative 
 other 
comprehensive 
 income (loss)

Balance, December 31, 2015
$
1,813

 
620

 
(1,951
)
 
(185
)
 
297

Net unrealized gains (losses) arising during the period
(2,156
)
 
110

 
(92
)
 
1

 
(2,137
)
Amounts reclassified from accumulated other comprehensive income
(773
)
 
(641
)
 
100

 
—

 
(1,314
)
Net change
(2,929
)
 
(531
)
 
8

 
1

 
(3,451
)
Less: Other comprehensive loss from noncontrolling interests
(17
)
 
—

 
—

 
—

 
(17
)
Balance, December 31, 2016
(1,099
)

89


(1,943
)

(184
)

(3,137
)
Transition adjustment (2)
—

 
168

 
—

 
—

 
168

Balance, January 1, 2017
(1,099
)
 
257

 
(1,943
)
 
(184
)
 
(2,969
)
Net unrealized gains (losses) arising during the period
1,663

 
(337
)
 
37

 
99

 
1,462

Amounts reclassified from accumulated other comprehensive income
(459
)
 
(338
)
 
98

 
—

 
(699
)
Net change
1,204

 
(675
)
 
135

 
99

 
763

Less: Other comprehensive income (loss) from noncontrolling interests
(66
)
 
—

 
—

 
4

 
(62
)
Balance, December 31, 2017
171


(418
)

(1,808
)

(89
)

(2,144
)
Transition adjustment (3)
(118
)
 
—

 
—

 
—

 
(118
)
Balance, January 1, 2018
53

 
(418
)
 
(1,808
)
 
(89
)
 
(2,262
)
Reclassification of certain tax effects to retained earnings (4)
31

 
(87
)
 
(353
)
 
9

 
(400
)
Net unrealized losses arising during the period
(3,393
)
 
(402
)
 
(328
)
 
(155
)
 
(4,278
)
Amounts reclassified from accumulated other comprehensive income
187

 
222

 
193

 
—

 
602

Net change
(3,175
)

(267
)

(488
)

(146
)

(4,076
)
Less: Other comprehensive loss from noncontrolling interests
—

 
—

 
—

 
(2
)
 
(2
)
Balance, December 31, 2018
$
(3,122
)

(685
)

(2,296
)

(233
)

(6,336
)

(1)
The years ended December 31, 2017 and 2016, include net unrealized gains (losses) arising during the period from equity securities of $81 million and $259 million and reclassification of net (gains) losses to net income related to equity securities of $(456) million and $(300) million, respectively. In connection with our adoption in first quarter 2018 of ASU 2016-01 – Financial Instruments – Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities, the year ended December 31, 2018, reflects net unrealized gains (losses) arising during the period and reclassification of net (gains) losses to net income from only debt securities.
(2)
Transition adjustment relates to our adoption of ASU 2017-12 – Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities. See Note 1 (Summary of Significant Accounting Policies) for more information.
(3)
The transition adjustment relates to our adoption of ASU 2016-01 – Financial Instruments – Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities. See Note 1 (Summary of Significant Accounting Policies) for more information.
(4)
Represents the reclassification from other comprehensive income to retained earnings as a result of our adoption of ASU 2018-02 – Income Statement-Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income in third quarter 2018. See Note 1 (Summary of Significant Accounting Policies) for more information.