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Other Comprehensive Income
 3 Months Ended
Mar. 31, 2020
Cumulative Other Comprehensive Income Balances [Abstract]  
Other Comprehensive Income
Note 21: Other Comprehensive Income
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 March 31,
 
 
2020
 
 
2019
 
(in millions)
Before
tax

 
Tax
effect

 
Net of
tax

 
Before
tax

 
Tax
effect

 
Net of
tax

Debt securities:
 
 
 
 
 
 
 
 
 
 
 
Net unrealized gains (losses) arising during the period
$
(110
)
 
22

 
(88
)
 
2,831

 
(695
)
 
2,136

Reclassification of net (gains) losses to net income:
 
 
 
 
 
 
 
 
 
 


Interest income on debt securities (1)
66

 
(16
)
 
50

 
45

 
(11
)
 
34

Net gains on debt securities
(237
)
 
48

 
(189
)
 
(125
)
 
31

 
(94
)
Other noninterest income
(1
)
 
—

 
(1
)
 
(1
)
 
—

 
(1
)
Subtotal reclassifications to net income
(172
)

32


(140
)
 
(81
)
 
20

 
(61
)
Net change
(282
)

54


(228
)
 
2,750

 
(675
)
 
2,075

Derivative and hedging activities:
 
 
 
 
 
 
 
 
 
 
 
Fair Value Hedges:
 
 
 
 
 
 
 
 
 
 
 
Change in fair value of excluded components on fair value hedges (2)
144

 
(35
)
 
109

 
(26
)
 
7

 
(19
)
Cash Flow Hedges:
 
 
 
 
 
 
 
 
 
 
 
Net unrealized losses arising during the period on cash flow hedges
(20
)
 
5

 
(15
)
 
(9
)
 
2

 
(7
)
Reclassification of net losses to net income on cash flow hedges:
 
 
 
 
 
 
 
 
 
 


Interest income on loans
56

 
(14
)
 
42

 
78

 
(19
)
 
59

Interest expense on long-term debt
2

 
(1
)
 
1

 
1

 
—

 
1

Subtotal reclassifications to net income
58


(15
)

43


79


(19
)

60

Net change
182


(45
)

137

 
44

 
(10
)
 
34

Defined benefit plans adjustments:
 
 
 
 
 
 
 
 
 
 
 
Net actuarial and prior service gains (losses) arising during the period
3

 
(1
)
 
2

 
(4
)
 
1

 
(3
)
Reclassification of amounts to non interest expense (3):
 
 
 
 
 
 
 
 
 
 
 
Amortization of net actuarial loss
35

 
(8
)
 
27

 
35

 
(8
)
 
27

Settlements and other
1

 
—

 
1

 
—

 
—

 
—

Subtotal reclassifications to non interest expense
36


(8
)

28

 
35

 
(8
)
 
27

Net change
39


(9
)

30

 
31

 
(7
)
 
24

Foreign currency translation adjustments:
 
 
 
 
 
 
 
 
 
 
 
Net unrealized gains (losses) arising during the period
(194
)
 
1

 
(193
)
 
42

 
(2
)
 
40

Net change
(194
)

1


(193
)
 
42

 
(2
)
 
40

Other comprehensive income (loss)
$
(255
)

1


(254
)
 
2,867


(694
)

2,173

Less: Other comprehensive loss from noncontrolling interests, net of tax
 
 
 
 
(1
)
 
 
 
 
 
—

Wells Fargo other comprehensive income (loss), net of tax
 
 
 
 
$
(253
)
 
 
 
 
 
2,173

(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) for more information).


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 March 31, 2020
 
 
 
 
 
 
 
 
 
 
 
Balance, beginning of period
$
1,552

 
(180
)
 
(298
)
 
(2,223
)
 
(162
)
 
(1,311
)
Net unrealized gains (losses) arising during the period
(88
)
 
109

 
(15
)
 
2

 
(193
)
 
(185
)
Amounts reclassified from accumulated other comprehensive income
(140
)
 
—

 
43

 
28

 
—

 
(69
)
Net change
(228
)
 
109

 
28

 
30

 
(193
)
 
(254
)
Less: Other comprehensive loss from noncontrolling interests
—

 
—

 
—

 
—

 
(1
)
 
(1
)
Balance, end of period
$
1,324

 
(71
)
 
(270
)
 
(2,193
)
 
(354
)
 
(1,564
)
Quarter ended March 31, 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
2,136

 
(19
)
 
(7
)
 
(3
)
 
40

 
2,147

Amounts reclassified from accumulated other comprehensive income
(61
)
 
—

 
60

 
27

 
—

 
26

Net change
2,075

 
(19
)
 
53

 
24

 
40

 
2,173

Less: Other comprehensive income from noncontrolling interests
—

 
—

 
—

 
—

 
—

 
—

Balance, end of period
$
(566
)
 
(197
)
 
(454
)
 
(2,272
)
 
(193
)
 
(3,682
)

(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 more information see Note 1 (Summary of Significant Accounting Policies).
.