Wells Fargo 2015 Annual Report Download - page 257

Note 23: Other Comprehensive Income
Table 23.1 provides the components of other comprehensive
income (OCI), reclassifications to net income by income
statement line item, and the related tax effects.
Table 23.1: Summary of Other Comprehensive Income
Year ended December 31,
2015 2014 2013
Before Tax Net of Before Tax Net of Before Tax Net of
(in millions) tax effect tax tax effect tax tax effect tax
Investment securities:
Net unrealized gains (losses) arising
during the period $ (3,318) 1,237 (2,081) 5,426 (2,111) 3,315 (7,661) 2,981 (4,680)
Reclassification of net (gains) losses to
net income:
Interest income on investment
securities (1) (1) — (1) (37) 14 (23) — — —
Net (gains) losses on debt securities (952) 356 (596) (593) 224 (369) 29 (11) 18
Net (gains) losses from equity
investments (571) 213 (358) (901) 340 (561) (314) 118 (196)
Other noninterest income (6) 3 (3) (1) — (1) — — —
Subtotal reclassifications to net
income (1,530) 572 (958) (1,532) 578 (954) (285) 107 (178)
Net change (4,848) 1,809 (3,039) 3,894 (1,533) 2,361 (7,946) 3,088 (4,858)
Derivatives and hedging activities:
Net unrealized gains (losses) arising
during the period 1,549 (584) 965 952 (359) 593 (32) 12 (20)
Reclassification of net (gains) losses to
net income:
Interest income on investment
securities (3) 1 (2) (1) — (1) — — —
Interest income on loans (1,103) 416 (687) (588) 222 (366) (426) 156 (270)
Interest expense on long-term debt 17 (6) 11 44 (17) 27 91 (34) 57
Other noninterest income — — — — — — 35 (13) 22
Salaries expense — — — — — — 4 (2) 2
Subtotal reclassifications
to net income (1,089) 411 (678) (545) 205 (340) (296) 107 (189)
Net change 460 (173) 287 407 (154) 253 (328) 119 (209)
Defined benefit plans adjustments:
Net actuarial gains (losses) arising
during the period (512) 193 (319) (1,116) 420 (696) 1,533 (578) 955
Reclassification of amounts to net
periodic benefit costs (2):
Amortization of net actuarial loss 122 (46) 76 74 (28) 46 151 (57) 94
Settlements and other (8) 3 (5) — — — 125 (46) 79
Subtotal reclassifications to net
periodic benefit costs 114 (43) 71 74 (28) 46 276 (103) 173
Net change (398) 150 (248) (1,042) 392 (650) 1,809 (681) 1,128
Foreign currency translation adjustments:
Net unrealized losses arising during the
period (137) (12) (149) (60) (5) (65) (44) (7) (51)
Reclassification of net (gains) losses to
net income:
Net gains from equity investments (5) — (5) — — — — — —
Other noninterest income — — — 6 — 6 (12) 5 (7)
Subtotal reclassifications
to net income (5) — (5) 6 — 6 (12) 5 (7)
Net change (142) (12) (154) (54) (5) (59) (56) (2) (58)
Other comprehensive income (loss) $ (4,928) 1,774 (3,154) 3,205 (1,300) 1,905 (6,521) 2,524 (3,997)
Less: Other comprehensive income (loss)
from noncontrolling interests, net of tax 67 (227) 267
Wells Fargo other comprehensive
income (loss), net of tax $ (3,221) 2,132 (4,264)
(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) These items are included in the computation of net periodic benefit cost, which is recorded in employee benefits expense (see Note 20 (Employee Benefits and Other
Expenses) for additional details).
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