JP Morgan Chase 2009 Annual Report Download - page 174

Notes to consolidated financial statements
JPMorgan Chase & Co./2009 Annual Report 172
The following table presents the carrying value and estimated fair value of financial assets and liabilities.
2009 2008
December 31, (in billions)
Carrying
value
Estimated
fair value
Appreciation/
(depreciation)
Carrying
value
Estimated
fair value
Appreciation/
(depreciation)
Financial assets
Assets for which fair value approximates carrying value $ 89.4 $ 89.4 $ — $ 165.0 $ 165.0 $
—
Accrued interest and accounts receivable (included $5.0
and $3.1 at fair value at December 31, 2009 and 2008,
respectively) 67.4 67.4 — 61.0 61.0
—
Federal funds sold and securities purchased under resale
agreements (included $20.5 and $20.8 at fair value at
December 31, 2009 and 2008, respectively) 195.4 195.4 — 203.1 203.1
—
Securities borrowed (included $7.0 and $3.4 at fair value
at December 31, 2009 and 2008, respectively) 119.6 119.6 — 124.0 124.0
—
Trading assets 411.1 411.1 — 510.0 510.0
—
Securities (included $360.4 and $205.9 at fair value at
December 31, 2009 and 2008, respectively) 360.4 360.4 — 205.9 205.9
—
Loans (included $1.4 and $7.7 at fair value at December
31, 2009 and 2008, respectively) 601.9 598.3 (3.6) 721.7 700.0
(21.7
)
Mortgage servicing rights at fair value 15.5 15.5 — 9.4 9.4
—
Other (included $19.2 and $29.2 at fair value at Decem
ber
31, 2009 and 2008, respectively) 73.4 73.2 (0.2) 83.0 83.1
0.1
Total financial assets $ 1,934.1 $ 1,930.3 $ (3.8) $ 2,083.1 $ 2,061.5 $
(21.6
)
Financial liabilities
Deposits (included $4.5 and $5.6 at fair value at Decem
ber
31, 2009 and 2008, respectively) $ 938.4 $ 939.5 $ (1.1) $ 1,009.3 $ 1,010.2 $
(0.9
)
Federal funds purchased and securities loaned or sold
under repurchase agreements (included $3.4 and
$3.0 at fair value at December 31, 2009 and 2008,
respectively) 261.4 261.4 — 192.5 192.5
—
Commercial paper 41.8 41.8 — 37.8 37.8
—
Other borrowed funds (included $5.6 and $14.7 at fair
value at December 31, 2009 and 2008, respectively) 55.7 55.9 (0.2) 132.4 134.1
(1.7
)
Trading liabilities 125.1 125.1 — 166.9 166.9
—
Accounts payable and other liabilities (included $0.4 and
zero at fair value at December 31, 2009 and 2008,
respectively) 136.8 136.8 — 167.2 167.2
—
Beneficial interests issued by consolidated VIEs (included
$1.4 and $1.7 at fair value at December 31, 2009 and
2008, respectively) 15.2 15.2 — 10.6 10.5
0.1
Long-term debt and junior subordinated deferrable inter
est
debentures (included $49.0 and $58.2 at fair value at
December 31, 2009 and 2008, respectively) 266.3 268.4 (2.1) 270.7 262.1
8.6
Total financial liabilities $ 1,840.7 $ 1,844.1 $ (3.4) $ 1,987.4 $ 1,981.3 $
6.1
Net (depreciation)/appreciation $ (7.2) $
(15.5
)
The majority of the Firm’s unfunded lending-related commitments
are not carried at fair value on a recurring basis on the Consoli-
dated Balance Sheets, nor are they actively traded. The estimated
fair values of the Firm’s wholesale lending-related commitments at
December 31, 2009 and 2008, were liabilities of $1.3 billion and
$7.5 billion, respectively. The Firm does not estimate the fair value of
consumer lending-related commitments. In many cases, the Firm can
reduce or cancel these commitments by providing the borrower prior
notice or, in some cases, without notice as permitted by law.
Trading assets and liabilities
Trading assets include debt and equity instruments held for trading
purposes that JPMorgan Chase owns (“long” positions), certain
loans for which the Firm manages on a fair value basis and has
elected the fair value option, and physical commodities inventories
that are accounted for at the lower of cost or fair value. Trading
liabilities include debt and equity instruments that the Firm has sold
to other parties but does not own (“short” positions). The Firm is
obligated to purchase instruments at a future date to cover the
short positions. Included in trading assets and trading liabilities are
the reported receivables (unrealized gains) and payables (unrealized
losses) related to derivatives. Trading assets and liabilities are
carried at fair value on the Consolidated Balance Sheets. For a
discussion of the valuation and a summary of trading assets and
trading liabilities, including derivative receivables and payables, see
Note 4 on pages 173–175 and Note 5 on pages 175–183 of this
Annual Report.