JP Morgan Chase 2008 Annual Report Download - page 151

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JPMorgan Chase & Co./ 2008 Annual Report 149
Fair value measurements using significant unobservable inputs
Change in unrealized
For the year ended Total Purchases, Transfers into gains and (losses) related to
December 31, 2007 Fair value, realized/unrealized issuances and/or Fair value, financial instruments held
(in millions) January 1, 2007 gains/(losses)(c) settlements, net out of level 3(c) December 31, 2007 at December 31, 2007
Assets:
Trading assets:
Debt and equity instruments $ 9,320 $ (916)(d)(e) $ 5,902 $ 9,760 $ 24,066 $ (912)(d)(e)
Net derivative receivables (2,800) 1,674(d) 257 1,502 633 1,979(d)
Available-for-sale securities 177 38(f) (21) (93) 101 (5)(f)
Loans 643 (346)(d) 8,013 70 8,380 (36)(d)
Mortgage servicing rights 7,546 (516)(e) 1,602 — 8,632 (516)(e)
Other assets:
Private equity investments(a) 5,493 4,051(d) (2,764) (17) 6,763 1,711(d)
All other 1,591 37(g) 1,059 473 3,160 (19)(g)
Liabilities(b):
Deposits $ (385) $ (42)(d) $ (667) $ (67) $ (1,161) $ (38)(d)
Other borrowed funds — (67)(d) (34) (4) (105) (135)(d)
Trading liabilities:
Debt and equity instruments (32) 383(d) (125) (706) (480) (734)(d)
Accounts payable and
other liabilities — (460)(d) 435 — (25) (25)(d)
Beneficial interests issued by
consolidated VIEs (8) 6(d) 1 (81) (82) —
Long-term debt (11,386) (1,142)(d) (6,633) (2,777) (21,938) (468)(d)
(a) Private equity instruments represent investments within the Corporate/Private Equity line of business.
(b) Level 3 liabilities as a percentage of total Firm liabilities accounted for at fair value (including liabilities carried at fair value on a nonrecurring basis) were 25% and 17% at December 31,
2008 and 2007, respectively. The Firm does not allocate the FIN 39 netting adjustment across the levels of the fair value hierarchy. As such, the level 3 derivative payables balance included
in the level 3 total balance is gross of any netting adjustments.
(c) Beginning January 1, 2008, all transfers in and out of level 3 are assumed to occur at the beginning of the reporting period.
(d) Reported in principal transactions revenue.
(e) Changes in fair value for Retail Financial Services mortgage loans originated with the intent to sell and MSRs are measured at fair value and reported in mortgage fees and related income.
(f) Realized gains (losses) are reported in securities gains (losses). Unrealized gains (losses) are reported in accumulated other comprehensive income (loss).
(g) Reported in other income.