Other Comprehensive Income (Tables)

9 Months Ended

Sep. 30, 2020

Cumulative Other Comprehensive Income Balances [Abstract]

Table 21.1 provides the components of OCI, reclassifications to net income by income statement line item, and the related tax effects.

Table 21.1: Summary of Other Comprehensive Income


	Quarter ended September 30,								Nine months ended September 30,
	2020					2019			2020			2019
(in millions)	Before tax		Tax effect	Net of tax		Before tax	Tax effect	Net of tax	Before tax	Tax effect	Net of tax	Before tax	Tax effect	Net of tax
Debt securities:
Net unrealized gains arising during the period	$	96	(18)	78		652	(159)	493	1,582	(391)	1,191	5,192	(1,276)	3,916
Reclassification of net (gains) losses to net income:
Interest income on debt securities (1)	167		(41)	126		77	(19)	58	356	(88)	268	183	(45)	138
Net gains on debt securities	(264)		63	(201)		(3)	—	(3)	(713)	174	(539)	(148)	36	(112)

Other noninterest income	2		—	2		2	(1)	1	—	—	—	(1)	—	(1)
Subtotal reclassifications to net income	(95)		22	(73)		76	(20)	56	(357)	86	(271)	34	(9)	25
Net change	1		4	5		728	(179)	549	1,225	(305)	920	5,226	(1,285)	3,941
Derivative and hedging activities:
Fair Value Hedges:
Change in fair value of excluded components on fair value hedges (2)	(82)		20	(62)		28	(7)	21	5	(2)	3	58	(14)	44
Cash Flow Hedges:
Net unrealized gains (losses) arising during the period on cash flow hedges	12		(3)	9		(18)	4	(14)	(3)	1	(2)	(26)	6	(20)
Reclassification of net (gains) losses to net income on cash flow hedges:

Interest income on loans	53		(14)	39		73	(19)	54	162	(40)	122	228	(57)	171
Interest expense on long-term debt	(1)		1	—		2	—	2	3	—	3	5	(1)	4
Subtotal reclassifications to net income	52		(13)	39		75	(19)	56	165	(40)	125	233	(58)	175
Net change	(18)		4	(14)		85	(22)	63	167	(41)	126	265	(66)	199
Defined benefit plans adjustments:
Net actuarial and prior service losses arising during the period	(89)		22	(67)		—	—	—	(760)	188	(572)	(4)	1	(3)
Reclassification of amounts to non interest expense (3):
Amortization of net actuarial loss	41		(10)	31		35	(9)	26	110	(27)	83	106	(26)	80
Settlements and other	27		(6)	21		(2)	1	(1)	95	(22)	73	(5)	3	(2)
Subtotal reclassifications to non interest expense	68		(16)	52		33	(8)	25	205	(49)	156	101	(23)	78
Net change	(21)		6	(15)		33	(8)	25	(555)	139	(416)	97	(22)	75
Foreign currency translation adjustments:
Net unrealized gains (losses) arising during the period	74		(1)	73		(53)	1	(52)	(70)	1	(69)	3	(2)	1
Net change	74		(1)	73		(53)	1	(52)	(70)	1	(69)	3	(2)	1
Other comprehensive income	$	36	13	49		793	(208)	585	767	(206)	561	5,591	(1,375)	4,216
Less: Other comprehensive income from noncontrolling interests, net of tax				1				—			—			—
Wells Fargo other comprehensive income, net of tax				$	48			585			561			4,216

(1)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.

(2)Represents changes in fair value of cross-currency swaps attributable to changes in cross-currency basis spreads, which are excluded from the assessment of effectiveness recorded in other comprehensive income.

(3)These items are included in the computation of net periodic benefit cost (see Note 19 (Employee Benefits and Other Expenses) for additional information).

Cumulative OCI Balances

Table 21.2: Cumulative OCI Balances


(in millions)	Debt securities		Fair value hedges (1)	Cash flow hedges (2)	Defined benefit plans adjustments	Foreign currency translation adjustments	Cumulative other comprehensive income
Quarter ended September 30, 2020
Balance, beginning of period	$	2,467	(115)	(223)	(2,624)	(303)	(798)


Net unrealized gains (losses) arising during the period	78		(62)	9	(67)	73	31
Amounts reclassified from accumulated other comprehensive income	(73)		—	39	52	—	18
Net change	5		(62)	48	(15)	73	49
Less: Other comprehensive income from noncontrolling interests	—		—	—	—	1	1
Balance, end of period	$	2,472	(177)	(175)	(2,639)	(231)	(750)
Quarter ended September 30, 2019


Balance, beginning of period	751		(155)	(394)	(2,246)	(180)	(2,224)
Net unrealized gains (losses) arising during the period	493		21	(14)	—	(52)	448
Amounts reclassified from accumulated other comprehensive income	56		—	56	25	—	137
Net change	549		21	42	25	(52)	585

Balance, end of period	$	1,300	(134)	(352)	(2,221)	(232)	(1,639)
Nine months ended September 30, 2020
Balance, beginning of period	$	1,552	(180)	(298)	(2,223)	(162)	(1,311)


Net unrealized gains (losses) arising during the period	1,191		3	(2)	(572)	(69)	551
Amounts reclassified from accumulated other comprehensive income	(271)		—	125	156	—	10
Net change	920		3	123	(416)	(69)	561
Less: Other comprehensive loss from noncontrolling interests	—		—	—	—	—	—
Balance, end of period	$	2,472	(177)	(175)	(2,639)	(231)	(750)
Nine months ended September 30, 2019
Balance, beginning of period	$	(3,122)	(178)	(507)	(2,296)	(233)	(6,336)
Transition adjustment (3)	481		—	—	—	—	481
Balance, January 1, 2019	(2,641)		(178)	(507)	(2,296)	(233)	(5,855)

Net unrealized gains (losses) arising during the period	3,916		44	(20)	(3)	1	3,938
Amounts reclassified from accumulated other comprehensive income	25		—	175	78	—	278
Net change	3,941		44	155	75	1	4,216

Balance, end of period	$	1,300	(134)	(352)	(2,221)	(232)	(1,639)

(1)Substantially all of the beginning and end of period amounts for fair value hedges are foreign exchange contracts.

(2)Substantially all of the beginning and end of period amounts for cash flow hedges are interest rate contracts.

(3)The transition adjustment relates to the adoption of ASU 2017-08 – Receivables – Nonrefundable Fees and Other Costs (Subtopic 310-20): Premium Amortization on Purchased Callable Debt Securities. For additional information see Note 1 (Summary of Significant Accounting Policies) in our 2019 Form 10-K.