Company: WFC-PC
Filing Date: 2025-04-29
Form Type: 10-Q
Source: 0000072971-25-000129
Chunk: 92

Company: WELLS FARGO & COMPANY/MN
Filing Date: 2025-04-29
Form: 10-Q
Item: Item 1
Chunk 92
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116Wells Fargo & Company

Expenses

OPERATING LOSSES.  Operating losses consist of expenses related to:•Legal actions such as litigation and regulatory matters. For additional information on legal actions, see Note 10 (Legal Actions);•Customer remediation activities, which are associated with our efforts to identify areas or instances where customers may have experienced financial harm and provide remediation as appropriate. We have accrued for the probable and estimable costs related to our customer remediation activities. We had $188 million and $236 million of accrued liabilities for customer remediation activities as of March 31, 2025, and December 31, 2024, respectively. Amounts may change based on additional facts and information, as well as ongoing reviews and communications with our regulators; and•Other business activities such as deposit overdraft losses, fraud losses, and isolated instances of customer redress.Table 18.2 provides the components of our operating losses included in our consolidated statement of income.Table 18.2:  Operating LossesQuarter ended March 31,(in millions)20252024Legal actions$(19)17 Customer remediation10 428 Other152 188 Total operating losses$143 633 Operating losses may have significant variability given the inherent and unpredictable nature of legal actions and customer remediation activities. The timing and determination of the amount of any associated losses for these matters depends on a variety of factors, some of which are outside of our control.OTHER EXPENSES.  Regulatory Charges and Assessments expense, which is included in other noninterest expense, was $303 million in first quarter 2025, compared with $551 million in the same period a year ago, and predominantly consisted of Federal Deposit Insurance Corporation (FDIC) deposit assessment expense, including amounts for the FDIC special assessment. For additional information on the FDIC special assessment, see Note 21 (Revenue and Expenses) in our 2024 Form 10-K.

Wells Fargo & Company117

Note 19:  Employee BenefitsPension and Postretirement PlansWe sponsor a frozen noncontributory qualified defined benefit retirement plan, the Wells Fargo & Company Cash Balance Plan (Cash Balance Plan), which covers eligible employees of Wells Fargo. The Cash Balance Plan was frozen on July 1, 2009, and no new benefits accrue after that date. For additional information on our pension and postretirement plans, including plan assumptions, investment strategy and asset allocation, projected benefit payments, and