JP Morgan Chase 2005 Annual Report Download - page 120

Notes to consolidated financial statements
JPMorgan Chase & Co.
118 JPMorgan Chase & Co. /2005 Annual Report
The following is a summary of JPMorgan Chase’s preferred stock outstanding as of December 31:
Stated value and Rate in effect at
(in millions, except redemption Shares Outstanding at December 31, Earliest December 31,
per share amounts and rates) price per share(b) 2005 2004 2005 2004 redemption date 2005
6.63% Series H cumulative(a) $ 500.00 0.28 0.28 $ 139 $ 139 3/31/2006 6.63%
Fixed/adjustable rate, noncumulative 50.00 —4.00 —200 — —
Total preferred stock 0.28 4.28 $ 139 $ 339
(a) Represented by depositary shares.
(b) Redemption price includes amount shown in the table plus any accrued but unpaid dividends.
The debentures issued to the issuer trusts by the Firm, less the capital securities of the issuer trusts, qualify as Tier 1 capital. The following is a summary of the outstanding
capital securities, net of discount, issued by each trust and the junior subordinated deferrable interest debenture issued by JPMorgan Chase to each trust as of
December 31, 2005:
Amount Principal Stated maturity
of capital amount of of capital
securities debenture securities Earliest Interest rate of Interest
issued held Issue and redemption capital securities payment/
December 31, 2005 (in millions) by trust(a) by trust(b) date debentures date and debentures distribution dates
Bank One Capital III $ 474 $ 616 2000 2030 Any time 8.75% Semiannually
Bank One Capital V 300 335 2001 2031 2006 8.00% Quarterly
Bank One Capital VI 525 556 2001 2031 2006 7.20% Quarterly
Chase Capital I 600 619 1996 2026 2006 7.67% Semiannually
Chase Capital II 495 511 1997 2027 2007 LIBOR + 0.50% Quarterly
Chase Capital III 296 306 1997 2027 2007 LIBOR + 0.55% Quarterly
Chase Capital VI 249 256 1998 2028 Any time LIBOR + 0.625% Quarterly
First Chicago NBD Capital I 248 256 1997 2027 2007 LIBOR + 0.55% Quarterly
First Chicago NBD Institutional Capital A 499 551 1996 2026 2006 7.95% Semiannually
First Chicago NBD Institutional Capital B 250 273 1996 2026 2006 7.75% Semiannually
First USA Capital Trust I 3 3 1996 2027 2007 9.33% Semiannually
JPM Capital Trust I 750 773 1996 2027 2007 7.54% Semiannually
JPM Capital Trust II 400 412 1997 2027 2007 7.95% Semiannually
J.P. Morgan Chase Capital IX 500 509 2001 2031 2006 7.50% Quarterly
J.P. Morgan Chase Capital X 1,000 1,022 2002 2032 2007 7.00% Quarterly
J.P. Morgan Chase Capital XI 1,075 1,009 2003 2033 2008 5.88% Quarterly
J.P. Morgan Chase Capital XII 400 393 2003 2033 2008 6.25% Quarterly
JPMorgan Chase Capital XIII 472 487 2004 2034 2014 LIBOR + 0.95% Quarterly
JPMorgan Chase Capital XIV 600 593 2004 2034 2009 6.20% Quarterly
JPMorgan Chase Capital XV 994 1,049 2005 2035 Any time 5.88% Semiannually
JPMorgan Chase Capital XVI 500 501 2005 2035 2010 6.35% Quarterly
JPMorgan Chase Capital XVII 496 499 2005 2035 Any time 5.85% Semiannually
Total $11,126 $ 11,529
(a) Represents the amount of capital securities issued to the public by each trust, net of unamortized discount.
(b) Represents the principal amount of JPMorgan Chase debentures held as assets by each trust, net of unamortized discount amounts. The principal amount of debentures held by the trusts includes the
impact of hedging and purchase accounting fair value adjustments that are recorded on the Firm’s financial statements.
Note 18 – Preferred stock
JPMorgan Chase is authorized to issue 200 million shares of preferred stock,
in one or more series, with a par value of $1 per share. Outstanding preferred
stock at December 31, 2005 and 2004, was 280,433 and 4.28 million
shares, respectively. On May 6, 2005, JPMorgan Chase redeemed a total of
4.0 million shares of its Fixed/adjustable rate, noncumulative preferred stock.
Dividends on shares of the outstanding series of preferred stock are payable
quarterly. The preferred stock outstanding takes precedence over JPMorgan
Chase’s common stock for the payment of dividends and the distribution of
assets in the event of a liquidation or dissolution of the Firm.