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 | |||||||||||||||||
| 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 (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 | ||||||