WELLS FARGO & COMPANY/MN | 2013 | FY | 3


Note 23: Other Comprehensive Income       

 

The components of other comprehensive income (OCI), reclassifications to net income by income statement line item, and the related tax effects were:

 

                    
        Year ended December 31,
         2013  2012  2011
        BeforeTax Net of BeforeTaxNet of BeforeTaxNet of
(in millions) taxeffect tax taxeffecttax taxeffecttax
Investment securities:             
 Net unrealized gains (losses)             
  arising during the period (1)$ (7,661) 2,981  (4,680)  5,143 (1,921) 3,222  (588) 359 (229)
 Reclassification of net (gains) losses              
  to net income:             
   Net (gains) losses on debt securities  29 (11)  18  128 (48) 80  (54) 20 (34)
   Net gains from equity investments  (314) 118  (196)  (399) 150 (249)  (642) 242 (400)
    Subtotal reclassifications              
     to net income  (285) 107  (178)  (271) 102 (169)  (696) 262 (434)
      Net change  (7,946) 3,088  (4,858)  4,872 (1,819) 3,053  (1,284) 621 (663)
Derivatives and hedging activities:             
 Net unrealized gains (losses)             
  arising during the period  (32) 12  (20)  52 (12) 40  190 (85) 105
 Reclassification of net (gains) losses              
  to net income:             
   Interest income on loans  (426) 156  (270)  (490) 185 (305)  (686) 259 (427)
   Interest expense on long-term debt  91 (34)  57  96 (36) 60  115 (42) 73
   Noninterest income  35 (13)  22  - - -  - - -
   Salaries expense  4 (2)  2  6 (2) 4  - - -
    Subtotal reclassifications              
     to net income  (296) 107  (189)  (388) 147 (241)  (571) 217 (354)
      Net change  (328) 119  (209)  (336) 135 (201)  (381) 132 (249)
Defined benefit plans adjustments:             
 Net actuarial gains (losses)             
  arising during the period  1,533 (578)  955  (775) 290 (485)  (1,079) 411 (668)
 Reclassification of amounts to net periodic             
  benefit costs (2):             
   Amortization of net actuarial loss  151 (57)  94  141 (53) 88  92 (35) 57
   Settlements and other  125 (46)  79  3 (1) 2  7 (3) 4
    Subtotal reclassifications              
     to net periodic benefit costs  276 (103)  173  144 (54) 90  99 (38) 61
      Net change  1,809 (681)  1,128  (631) 236 (395)  (980) 373 (607)
Foreign currency translation adjustments:             
 Net unrealized losses             
  arising during the period  (44) (7)  (51)  (6) 2 (4)  (37) 13 (24)
 Reclassification of net gains              
  to net income:              
   Noninterest income  (12) 5  (7)  (10) 4 (6)  - - -
      Net change  (56) (2)  (58)  (16) 6 (10)  (37) 13 (24)
Other comprehensive income (loss)$ (6,521) 2,524  (3,997)  3,889 (1,442) 2,447  (2,682) 1,139 (1,543)
Less: Other comprehensive income (loss) from              
 noncontrolling interests, net of tax     267    4    (12)
  Wells Fargo other comprehensive             
   income (loss), net of tax   $ (4,264)    2,443    (1,531)
                    
(1)December 31, 2013, includes $46 million in unrealized gains (pre-tax) related to available-for-sale securities that were transferred to the held-to-maturity portfolio.
(2)These items are included in the computation of net periodic benefit cost, which is recorded in employee benefits expense (see Note 20 for additional details).
                    

Cumulative OCI balances were:

             
            Cumulative
      Derivatives Defined Foreign other
      and benefit currency compre-
    Investment hedging plans translation hensive
(in millions) securities activities adjustments adjustments income
Balance, December 31, 2010$ 5,066  739  (1,179)  112  4,738
 Net unrealized gains (losses) arising during the period  (229)  105  (668)  (24)  (816)
 Amounts reclassified to net income  (434)  (354)  61  -  (727)
 Net change  (663)  (249)  (607)  (24)  (1,543)
 Less: Other comprehensive income (loss)          
  from noncontrolling interests  (10)  -  -  (2)  (12)
Balance, December 31, 2011  4,413  490  (1,786)  90  3,207
 Net unrealized gains (losses) arising during the period  3,222  40  (485)  (4)  2,773
 Amounts reclassified to net income  (169)  (241)  90  (6)  (326)
 Net change  3,053  (201)  (395)  (10)  2,447
 Less: Other comprehensive income (loss)          
  from noncontrolling interests  4  -  -  -  4
Balance, December 31, 2012  7,462  289  (2,181)  80  5,650
 Net unrealized gains (losses) arising during the period  (4,680)  (20)  955  (51)  (3,796)
 Amounts reclassified to net income  (178)  (189)  173  (7)  (201)
 Net change  (4,858)  (209)  1,128  (58)  (3,997)
 Less: Other comprehensive income (loss)          
  from noncontrolling interests  266  -  -  1  267
Balance, December 31, 2013$ 2,338  80  (1,053)  21  1,386

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