JP Morgan Chase 2008 Annual Report Download - page 134

Consolidated statements of changes in stockholders’ equity and
comprehensive income
132 JPMorgan Chase & Co./ 2008 Annual Report
Year ended December 31, (in millions, except per share data) 2008 2007 2006
Preferred stock
Balance at beginning of year $— $ — $ 139
Issuance of preferred stock 31,550 ——
Issuance of preferred stock – conversion of the Bear Stearns preferred stock 352 ——
Accretion of preferred stock discount on issuance to U.S. Treasury 37 ——
Redemption of preferred stock —— (139)
Balance at end of year 31,939 ——
Common stock
Balance at beginning of year 3,658 3,658 3,618
Issuance of common stock 284 —40
Balance at end of year 3,942 3,658 3,658
Capital surplus
Balance at beginning of year 78,597 77,807 74,994
Issuance of common stock 11,201 ——
Shares issued and commitments to issue common stock for employee stock-based
compensation awards and related tax effects 859 790 2,813
Net change from the Bear Stearns merger:
Reissuance of treasury stock and the Share Exchange agreement 48 ——
Employee stock awards 242 ——
Warrant issued to U.S. Treasury in connection with issuance of preferred stock 1,250 ——
Preferred stock issue cost (54) ——
Balance at end of year 92,143 78,597 77,807
Retained earnings
Balance at beginning of year 54,715 43,600 33,848
Cumulative effect of change in accounting principles —915 172
Balance at beginning of year, adjusted 54,715 44,515 34,020
Net income 5,605 15,365 14,444
Dividends declared:
Preferred stock (674) — (4)
Common stock ($1.52, $1.48 and $1.36 per share for the years ended
December 31, 2008, 2007 and 2006, respectively) (5,633) (5,165) (4,860)
Balance at end of year 54,013 54,715 43,600
Accumulated other comprehensive income (loss)
Balance at beginning of year (917) (1,557) (626)
Cumulative effect of change in accounting principles —(1) —
Balance at beginning of year, adjusted (917) (1,558) (626)
Other comprehensive income (loss) (4,770) 641 171
Adjustment to initially apply SFAS 158 —— (1,102)
Balance at end of year (5,687) (917) (1,557)
Shares held in RSU Trust
Balance at beginning of year ———
Resulting from the Bear Stearns merger (269) ——
Reissuance from RSU Trust 52 ——
Balance at end of year (217) ——
Treasury stock, at cost
Balance at beginning of year (12,832) (7,718) (4,762)
Purchase of treasury stock —(8,178) (3,938)
Reissuance from treasury stock 2,454 3,199 1,334
Share repurchases related to employee stock-based compensation awards (21) (135) (352)
Net change from the Bear Stearns merger as a result of the reissuance of treasury stock and the
Share Exchange agreement 1,150 ——
Balance at end of year (9,249) (12,832) (7,718)
Total stockholders’ equity $ 166,884 $ 123,221 $115,790
Comprehensive income
Net income $ 5,605 $ 15,365 $ 14,444
Other comprehensive income (loss) (4,770) 641 171
Comprehensive income $ 835 $ 16,006 $ 14,615
The Notes to Consolidated Financial Statements are an integral part of these statements.