2018 Form 10-K Financial Statement

#000007297119000227 Filed on February 27, 2019

View on sec.gov

Income Statement

Concept 2018 2017 Q4 2017
Revenue $86.41B $88.39B
YoY Change -2.24% 0.14%
Cost Of Revenue
YoY Change
Gross Profit
YoY Change
Gross Profit Margin
Selling, General & Admin
YoY Change
% of Gross Profit
Research & Development
YoY Change
% of Gross Profit
Depreciation & Amortization $5.593B $1.612B $5.406B
YoY Change 3.46% 17.49% 8.77%
% of Gross Profit
Operating Expenses
YoY Change
Operating Profit
YoY Change
Interest Expense $14.65B $9.352B
YoY Change 56.67% 58.27%
% of Operating Profit
Other Income/Expense, Net $4.129B $3.789B
YoY Change 8.97%
Pretax Income $28.54B $4.599B $27.38B
YoY Change 4.24% -39.18% -14.77%
Income Tax $5.662B $775.0M $4.917B
% Of Pretax Income 19.84% 16.85% 17.96%
Net Earnings $22.39B $6.151B $22.18B
YoY Change 0.95% 16.63% 1.12%
Net Earnings / Revenue 25.92% 25.1%
Basic Earnings Per Share $4.31 $4.14
Diluted Earnings Per Share $4.28 $1.239M $4.10
COMMON SHARES
Basic Shares Outstanding 4.800B shares 4.924B shares 4.965B shares
Diluted Shares Outstanding 4.838B shares 5.017B shares

Balance Sheet

Concept 2018 2017 Q4 2017
SHORT-TERM ASSETS
Cash & Short-Term Investments
YoY Change
Cash & Equivalents $215.9B
Short-Term Investments
Other Short-Term Assets
YoY Change
Inventory
Prepaid Expenses
Receivables
Other Receivables
Total Short-Term Assets
YoY Change
LONG-TERM ASSETS
Property, Plant & Equipment $8.920B $8.847B $8.847B
YoY Change 0.83% 6.17% 6.17%
Goodwill $26.59B
YoY Change -0.4%
Intangibles
YoY Change
Long-Term Investments $16.35B $16.35B
YoY Change 4.1% 4.1%
Other Assets
YoY Change
Total Long-Term Assets
YoY Change
TOTAL ASSETS
Total Short-Term Assets
Total Long-Term Assets
Total Assets $1896B $1952B $1952B
YoY Change -2.86% 1.12% 1.12%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable
YoY Change
Accrued Expenses $60.33B $70.62B $62.45B
YoY Change -3.41% 23.48% 24.56%
Deferred Revenue
YoY Change
Short-Term Debt $105.8B $103.3B $103.3B
YoY Change 2.45% 6.69% 6.69%
Long-Term Debt Due
YoY Change
Total Short-Term Liabilities $60.33B $70.62B $62.45B
YoY Change -3.41% 23.48% 24.56%
LONG-TERM LIABILITIES
Long-Term Debt $229.0B $225.0B $225.0B
YoY Change 1.79% -11.78% -11.78%
Other Long-Term Liabilities $8.499B $8.796B $8.796B
YoY Change -3.38% -39.3% -39.3%
Total Long-Term Liabilities $237.5B $233.8B $233.8B
YoY Change 1.59% -13.26% -13.26%
TOTAL LIABILITIES
Total Short-Term Liabilities $60.33B $70.62B $62.45B
Total Long-Term Liabilities $237.5B $233.8B $233.8B
Total Liabilities $1700B $1744B $1745B
YoY Change -2.59% 0.81% 0.83%
SHAREHOLDERS EQUITY
Retained Earnings $145.3B
YoY Change 9.16%
Common Stock $9.136B
YoY Change 0.0%
Preferred Stock $122.0M
YoY Change -3.17%
Treasury Stock (at cost) $29.89B
YoY Change 31.61%
Treasury Stock Shares 590.2M shares
Shareholders Equity $196.2B $206.9B $206.9B
YoY Change
Total Liabilities & Shareholders Equity $1896B $1952B $1952B
YoY Change -2.86% 1.12% 1.12%

Cashflow Statement

Concept 2018 2017 Q4 2017
OPERATING ACTIVITIES
Net Income $22.39B $6.151B $22.18B
YoY Change 0.95% 16.63% 1.12%
Depreciation, Depletion And Amortization $5.593B $1.612B $5.406B
YoY Change 3.46% 17.49% 8.77%
Cash From Operating Activities $36.07B $275.0M $18.62B
YoY Change 93.74% -94.23% 1747.12%
INVESTING ACTIVITIES
Capital Expenditures
YoY Change
Acquisitions $10.00M $320.0M
YoY Change -96.88% -98.95%
Other Investing Activities $779.0M -$27.94B $1.029B
YoY Change -24.3% 116.04% 102.56%
Cash From Investing Activities -$7.754B -$27.94B -$13.15B
YoY Change -41.04% 116.04% -90.73%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net $20.00B $8.697B
YoY Change 129.98% 29.79%
Debt Paid & Issued, Net $40.57B $80.80B
YoY Change -49.8% 134.47%
Cash From Financing Activities -$70.98B 18.40B -$10.92B
YoY Change 549.99% 91.46% -108.89%
NET CHANGE
Cash From Operating Activities $36.07B 275.0M $18.62B
Cash From Investing Activities -$7.754B -27.94B -$13.15B
Cash From Financing Activities -$70.98B 18.40B -$10.92B
Net Change In Cash -$42.66B -9.264B -$5.453B
YoY Change 682.32% -742.44% -69.91%
FREE CASH FLOW
Cash From Operating Activities $36.07B $275.0M $18.62B
Capital Expenditures
Free Cash Flow
YoY Change

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PreferredStockAmount
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SecuritiesOfSingleIssuerWithBookValueGreaterThanTenPercentOfStockholdersEquityAmount
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SecuritiesPurchasedUnderAgreementsToResellAndSecuritiesBorrowedAmountOffsetAgainstCollateral
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SecuritiesPurchasedUnderAgreementsToResellAndSecuritiesBorrowedAmountOffsetAgainstCollateral
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CY2017Q4 wfc Securities Purchased Under Agreements To Resell And Securities Borrowed Collateral
SecuritiesPurchasedUnderAgreementsToResellAndSecuritiesBorrowedCollateral
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SecuritiesPurchasedUnderAgreementsToResellAndSecuritiesBorrowedCollateral
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CY2017Q4 wfc Securities Purchased Under Agreements To Resell And Securities Borrowed Gross
SecuritiesPurchasedUnderAgreementsToResellAndSecuritiesBorrowedGross
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CY2018Q4 wfc Securities Purchased Under Agreements To Resell And Securities Borrowed Gross
SecuritiesPurchasedUnderAgreementsToResellAndSecuritiesBorrowedGross
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CY2017Q4 wfc Securities Purchased Under Agreements To Resell And Securities Borrowed Net Amount In Consolidated Balance Sheet
SecuritiesPurchasedUnderAgreementsToResellAndSecuritiesBorrowedNetAmountInConsolidatedBalanceSheet
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CY2018Q4 wfc Securities Purchased Under Agreements To Resell And Securities Borrowed Net Amount In Consolidated Balance Sheet
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SecuritiesSoldUnderAgreementsToRepurchaseAndSecuritiesLoanedAmountOffsetAgainstCollateral
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SecuritiesSoldUnderAgreementsToRepurchaseAndSecuritiesLoanedAmountOffsetAgainstCollateral
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SecuritiesSoldUnderAgreementsToRepurchaseAndSecuritiesLoanedCollateral
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SegmentReportingInformationAverageAsset
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CY2017 wfc Segment Reporting Information Average Balance Of Loans Held In Portfolio
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287000000 usd
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-112000000 usd
CY2016 wfc Servicing Fees Non Interest Income
ServicingFeesNonInterestIncome
3368000000 usd
CY2017 wfc Servicing Fees Non Interest Income
ServicingFeesNonInterestIncome
3392000000 usd
CY2018 wfc Servicing Fees Non Interest Income
ServicingFeesNonInterestIncome
3626000000 usd
CY2016 wfc Share Based Compensation And Preferred Stock Released By Employee Stock Option Plan
ShareBasedCompensationAndPreferredStockReleasedByEmployeeStockOptionPlan
1945000000 usd
CY2017 wfc Share Based Compensation And Preferred Stock Released By Employee Stock Option Plan
ShareBasedCompensationAndPreferredStockReleasedByEmployeeStockOptionPlan
2046000000 usd
CY2018 wfc Share Based Compensation And Preferred Stock Released By Employee Stock Option Plan
ShareBasedCompensationAndPreferredStockReleasedByEmployeeStockOptionPlan
2255000000 usd
CY2016 wfc Short Term Debt Average Weighted Average Interest Rate
ShortTermDebtAverageWeightedAverageInterestRate
0.0029
CY2017 wfc Short Term Debt Average Weighted Average Interest Rate
ShortTermDebtAverageWeightedAverageInterestRate
0.0077
CY2018 wfc Short Term Debt Average Weighted Average Interest Rate
ShortTermDebtAverageWeightedAverageInterestRate
0.0165
CY2016 wfc Short Term Debt Maturity Period
ShortTermDebtMaturityPeriod
P30D
CY2017 wfc Short Term Debt Maturity Period
ShortTermDebtMaturityPeriod
P30D
CY2018 wfc Short Term Debt Maturity Period
ShortTermDebtMaturityPeriod
P30D
CY2016 wfc Total Amountsof Line Items Presentedinthe Consolidated Statementof Income
TotalAmountsofLineItemsPresentedintheConsolidatedStatementofIncome
47597000000 usd
CY2017 wfc Total Amountsof Line Items Presentedinthe Consolidated Statementof Income
TotalAmountsofLineItemsPresentedintheConsolidatedStatementofIncome
48553000000 usd
CY2018 wfc Total Amountsof Line Items Presentedinthe Consolidated Statementof Income
TotalAmountsofLineItemsPresentedintheConsolidatedStatementofIncome
49305000000 usd
CY2017Q4 wfc Trading Assets
TradingAssets
100362000000 usd
CY2018Q4 wfc Trading Assets
TradingAssets
100316000000 usd
CY2016 wfc Tradingdebtsecuritiesretainedfromsecuritizationofmortgagesheldforsale
Tradingdebtsecuritiesretainedfromsecuritizationofmortgagesheldforsale
72399000000 usd
CY2017 wfc Tradingdebtsecuritiesretainedfromsecuritizationofmortgagesheldforsale
Tradingdebtsecuritiesretainedfromsecuritizationofmortgagesheldforsale
52435000000 usd
CY2018 wfc Tradingdebtsecuritiesretainedfromsecuritizationofmortgagesheldforsale
Tradingdebtsecuritiesretainedfromsecuritizationofmortgagesheldforsale
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CY2016 wfc Transfersfromavailableforsaledebtsecuritiestoheldtomaturitydebtsecurities
Transfersfromavailableforsaledebtsecuritiestoheldtomaturitydebtsecurities
4161000000 usd
CY2017 wfc Transfersfromavailableforsaledebtsecuritiestoheldtomaturitydebtsecurities
Transfersfromavailableforsaledebtsecuritiestoheldtomaturitydebtsecurities
50405000000 usd
CY2018 wfc Transfersfromavailableforsaledebtsecuritiestoheldtomaturitydebtsecurities
Transfersfromavailableforsaledebtsecuritiestoheldtomaturitydebtsecurities
16479000000 usd
CY2017Q4 wfc Unearned Esop Shares Cost
UnearnedESOPSharesCost
1678000000 usd
CY2018Q4 wfc Unearned Esop Shares Cost
UnearnedESOPSharesCost
1502000000 usd
CY2018Q4 wfc Unfunded Credit Commitments Consumer Mortgage Firstand Junior Linesof Credit Portfolio
UnfundedCreditCommitmentsConsumerMortgageFirstandJuniorLinesofCreditPortfolio
60100000000 usd
CY2017Q4 wfc Unpaid Principal Balance Of Mortgage Loans Eligible For Repurchase
UnpaidPrincipalBalanceOfMortgageLoansEligibleForRepurchase
2200000000 usd
CY2018Q4 wfc Unpaid Principal Balance Of Mortgage Loans Eligible For Repurchase
UnpaidPrincipalBalanceOfMortgageLoansEligibleForRepurchase
1200000000 usd
CY2016 wfc Unrealized Gain Loss On Mortgage Servicing Rights Mortgages Held For Sale And Loans Held For Sale
UnrealizedGainLossOnMortgageServicingRightsMortgagesHeldForSaleAndLoansHeldForSale
-139000000 usd
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UnrealizedGainLossOnMortgageServicingRightsMortgagesHeldForSaleAndLoansHeldForSale
-886000000 usd
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-453000000 usd
CY2018Q4 wfc Unrecognized Tax Benefits Related To Income Tax Positions On Temporary Differences
UnrecognizedTaxBenefitsRelatedToIncomeTaxPositionsOnTemporaryDifferences
1900000000 usd
CY2016 wfc Unreimbursed Direct Servicing Costs
UnreimbursedDirectServicingCosts
819000000 usd
CY2017 wfc Unreimbursed Direct Servicing Costs
UnreimbursedDirectServicingCosts
582000000 usd
CY2018 wfc Unreimbursed Direct Servicing Costs
UnreimbursedDirectServicingCosts
331000000 usd
CY2017Q4 wfc Variable Interest Entity Nonconsolidated Assets
VariableInterestEntityNonconsolidatedAssets
1367437000000 usd
CY2018Q4 wfc Variable Interest Entity Nonconsolidated Assets
VariableInterestEntityNonconsolidatedAssets
1374802000000 usd
CY2017 wfc Weighted Average Contractual Yield On Available For Sale Debt Securities
WeightedAverageContractualYieldOnAvailableForSaleDebtSecurities
0.0372
CY2018 wfc Weighted Average Contractual Yield On Available For Sale Debt Securities
WeightedAverageContractualYieldOnAvailableForSaleDebtSecurities
0.0370
CY2017 wfc Weighted Average Contractual Yield On Available For Sale Debt Securities Expected To Mature After Five And Through Ten Years
WeightedAverageContractualYieldOnAvailableForSaleDebtSecuritiesExpectedToMatureAfterFiveAndThroughTenYears
0.0324
CY2018 wfc Weighted Average Contractual Yield On Available For Sale Debt Securities Expected To Mature After Five And Through Ten Years
WeightedAverageContractualYieldOnAvailableForSaleDebtSecuritiesExpectedToMatureAfterFiveAndThroughTenYears
0.0364
CY2017 wfc Weighted Average Contractual Yield On Available For Sale Debt Securities Expected To Mature After One And Through Five Years
WeightedAverageContractualYieldOnAvailableForSaleDebtSecuritiesExpectedToMatureAfterOneAndThroughFiveYears
0.0311
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WeightedAverageContractualYieldOnAvailableForSaleDebtSecuritiesExpectedToMatureAfterOneAndThroughFiveYears
0.0282
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WeightedAverageContractualYieldOnAvailableForSaleDebtSecuritiesExpectedToMatureAfterTenYears
0.0383
CY2018 wfc Weighted Average Contractual Yield On Available For Sale Debt Securities Expected To Mature After Ten Years
WeightedAverageContractualYieldOnAvailableForSaleDebtSecuritiesExpectedToMatureAfterTenYears
0.0381
CY2017 wfc Weighted Average Contractual Yield On Available For Sale Debt Securities Expected To Mature Within One Year
WeightedAverageContractualYieldOnAvailableForSaleDebtSecuritiesExpectedToMatureWithinOneYear
0.0370
CY2018 wfc Weighted Average Contractual Yield On Available For Sale Debt Securities Expected To Mature Within One Year
WeightedAverageContractualYieldOnAvailableForSaleDebtSecuritiesExpectedToMatureWithinOneYear
0.0289
CY2017 wfc Weighted Average Contractual Yield On Held To Maturity Debt Securities Expected To Mature After Five And Through Ten Years Net Carrying Amount
WeightedAverageContractualYieldOnHeldToMaturityDebtSecuritiesExpectedToMatureAfterFiveAndThroughTenYearsNetCarryingAmount
0.0255
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WeightedAverageContractualYieldOnHeldToMaturityDebtSecuritiesExpectedToMatureAfterFiveAndThroughTenYearsNetCarryingAmount
0.0255
CY2017 wfc Weighted Average Contractual Yield On Held To Maturity Debt Securities Expected To Mature After One And Through Five Years Net Carrying Amount
WeightedAverageContractualYieldOnHeldToMaturityDebtSecuritiesExpectedToMatureAfterOneAndThroughFiveYearsNetCarryingAmount
0.0205
CY2018 wfc Weighted Average Contractual Yield On Held To Maturity Debt Securities Expected To Mature After One And Through Five Years Net Carrying Amount
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0.0205
CY2017 wfc Weighted Average Contractual Yield On Held To Maturity Debt Securities Expected To Mature After Ten Years Net Carrying Amount
WeightedAverageContractualYieldOnHeldToMaturityDebtSecuritiesExpectedToMatureAfterTenYearsNetCarryingAmount
0.0328
CY2018 wfc Weighted Average Contractual Yield On Held To Maturity Debt Securities Expected To Mature After Ten Years Net Carrying Amount
WeightedAverageContractualYieldOnHeldToMaturityDebtSecuritiesExpectedToMatureAfterTenYearsNetCarryingAmount
0.0319
CY2017 wfc Weighted Average Contractual Yield On Held To Maturity Debt Securities Expected To Mature Within One Year Net Carrying Amount
WeightedAverageContractualYieldOnHeldToMaturityDebtSecuritiesExpectedToMatureWithinOneYearNetCarryingAmount
0.0000
CY2018 wfc Weighted Average Contractual Yield On Held To Maturity Debt Securities Expected To Mature Within One Year Net Carrying Amount
WeightedAverageContractualYieldOnHeldToMaturityDebtSecuritiesExpectedToMatureWithinOneYearNetCarryingAmount
0.0000
CY2017 wfc Weighted Average Contractual Yield On Held To Maturity Debt Securities Net Carrying Amount
WeightedAverageContractualYieldOnHeldToMaturityDebtSecuritiesNetCarryingAmount
0.0292
CY2018 wfc Weighted Average Contractual Yield On Held To Maturity Debt Securities Net Carrying Amount
WeightedAverageContractualYieldOnHeldToMaturityDebtSecuritiesNetCarryingAmount
0.0287
CY2016 wfc Weighted Average Rate Reduction Related To Loan Modifications
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0.0413
CY2017 wfc Weighted Average Rate Reduction Related To Loan Modifications
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0.0592
CY2018 wfc Weighted Average Rate Reduction Related To Loan Modifications
WeightedAverageRateReductionRelatedToLoanModifications
0.0806
CY2018 us-gaap Use Of Estimates
UseOfEstimates
<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;text-indent:24px;font-size:9pt;"><font style="font-family:Georgia,serif;font-size:9pt;">To prepare the financial statements in conformity with GAAP, management must make estimates based on assumptions about future economic and market conditions (for example, unemployment, market liquidity, real estate prices, etc.) that affect the reported amounts of assets and liabilities at the date of the financial statements, income and expenses during the reporting period and the related disclosures. Although our estimates contemplate current conditions and how we expect them to change in the future, it is reasonably possible that actual conditions could be worse than anticipated in those estimates, which could materially affect our results of operations and financial condition. Management has made significant estimates in several areas, including:</font></div><table cellpadding="0" cellspacing="0" style="font-family:Times New Roman; font-size:10pt;"><tr><td style="width:24px;" rowspan="1" colspan="1"></td><td rowspan="1" colspan="1"></td></tr><tr><td style="vertical-align:top" rowspan="1" colspan="1"><div style="line-height:120%;font-size:9pt;padding-left:0px;"><font style="font-family:Georgia,serif;font-size:9pt;">&#8226;</font></div></td><td style="vertical-align:top;" rowspan="1" colspan="1"><div style="line-height:120%;font-size:9pt;"><font style="font-family:Georgia,serif;font-size:9pt;">allowance for credit losses (Note 6 (Loans and Allowance for Credit Losses)); </font></div></td></tr></table><table cellpadding="0" cellspacing="0" style="font-family:Times New Roman; font-size:10pt;"><tr><td style="width:24px;" rowspan="1" colspan="1"></td><td rowspan="1" colspan="1"></td></tr><tr><td style="vertical-align:top" rowspan="1" colspan="1"><div style="line-height:120%;font-size:9pt;padding-left:0px;"><font style="font-family:Georgia,serif;font-size:9pt;">&#8226;</font></div></td><td style="vertical-align:top;" rowspan="1" colspan="1"><div style="line-height:120%;font-size:9pt;"><font style="font-family:Georgia,serif;font-size:9pt;">valuations of residential mortgage servicing rights (MSRs) (Note 9 (Securitizations and Variable Interest Entities) and Note 10 (Mortgage Banking Activities)) and financial instruments (Note 18 (Fair Values of Assets and Liabilities));</font></div></td></tr></table><table cellpadding="0" cellspacing="0" style="font-family:Times New Roman; font-size:10pt;"><tr><td style="width:24px;" rowspan="1" colspan="1"></td><td rowspan="1" colspan="1"></td></tr><tr><td style="vertical-align:top" rowspan="1" colspan="1"><div style="line-height:120%;font-size:9pt;padding-left:0px;"><font style="font-family:Georgia,serif;font-size:9pt;">&#8226;</font></div></td><td style="vertical-align:top;padding-left:24px;" rowspan="1" colspan="1"><div style="line-height:120%;font-size:9pt;text-indent:-24px;"><font style="font-family:Georgia,serif;font-size:9pt;">liabilities for contingent litigation losses (Note 16 (Legal Actions)); and</font></div></td></tr></table><table cellpadding="0" cellspacing="0" style="font-family:Times New Roman; font-size:10pt;"><tr><td style="width:24px;" rowspan="1" colspan="1"></td><td rowspan="1" colspan="1"></td></tr><tr><td style="vertical-align:top" rowspan="1" colspan="1"><div style="line-height:120%;font-size:9pt;padding-left:0px;"><font style="font-family:Georgia,serif;font-size:9pt;">&#8226;</font></div></td><td style="vertical-align:top;padding-left:24px;" rowspan="1" colspan="1"><div style="line-height:120%;font-size:9pt;text-indent:-24px;"><font style="font-family:Georgia,serif;font-size:9pt;">income taxes (Note 23 (Income Taxes)).</font></div></td></tr></table><div style="line-height:120%;font-size:9pt;"><font style="font-family:Georgia,serif;font-size:9pt;"><br clear="none"/></font></div><div style="line-height:120%;font-size:9pt;"><font style="font-family:Georgia,serif;font-size:9pt;">Actual results could differ from those estimates.</font></div></div>

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