Summary
Wells Fargo & Company (WFC) filed an 8-K on March 29, 2018, primarily to provide revised operating segment financial data for the quarterly and year-to-date periods of 2017, 2016, and 2015. These revisions are due to a change in the methodology for assigning funding charges and credits to business lines, effective in the first quarter of 2018. The new approach will consider interest rate risk, liquidity risk, and other product characteristics on a more granular level when allocating these charges and credits across WFC's reportable operating segments. While consolidated financial results were not impacted by this specific methodology change, the company also notes that certain reclassifications will occur within noninterest income due to the adoption of a new accounting standard in the first quarter of 2018. Investors should note that the attached financial data is being furnished to aid in period-to-period comparisons and is not considered "filed" for purposes of Section 18 of the Securities Exchange Act.
Key Highlights
- 1Wells Fargo is providing revised historical operating segment financial data (2015-2017) to reflect a new funding charge/credit methodology.
- 2The new methodology, effective Q1 2018, will more granularly assess interest rate risk, liquidity risk, and product characteristics for funding allocations.
- 3This change affects results across all three reportable operating segments.
- 4Previously reported consolidated financial results are not impacted by this specific methodology change.
- 5The company will implement certain reclassifications within noninterest income due to adopting a new accounting standard in Q1 2018.
- 6The attached financial data is furnished to facilitate period-to-period comparisons and is not deemed 'filed' under Section 18 of the Exchange Act.