JP Morgan Chase 2009 Annual Report Download - page 180

Download and view the complete annual report

Please find page 180 of the 2009 JP Morgan Chase annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 260

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143
  • 144
  • 145
  • 146
  • 147
  • 148
  • 149
  • 150
  • 151
  • 152
  • 153
  • 154
  • 155
  • 156
  • 157
  • 158
  • 159
  • 160
  • 161
  • 162
  • 163
  • 164
  • 165
  • 166
  • 167
  • 168
  • 169
  • 170
  • 171
  • 172
  • 173
  • 174
  • 175
  • 176
  • 177
  • 178
  • 179
  • 180
  • 181
  • 182
  • 183
  • 184
  • 185
  • 186
  • 187
  • 188
  • 189
  • 190
  • 191
  • 192
  • 193
  • 194
  • 195
  • 196
  • 197
  • 198
  • 199
  • 200
  • 201
  • 202
  • 203
  • 204
  • 205
  • 206
  • 207
  • 208
  • 209
  • 210
  • 211
  • 212
  • 213
  • 214
  • 215
  • 216
  • 217
  • 218
  • 219
  • 220
  • 221
  • 222
  • 223
  • 224
  • 225
  • 226
  • 227
  • 228
  • 229
  • 230
  • 231
  • 232
  • 233
  • 234
  • 235
  • 236
  • 237
  • 238
  • 239
  • 240
  • 241
  • 242
  • 243
  • 244
  • 245
  • 246
  • 247
  • 248
  • 249
  • 250
  • 251
  • 252
  • 253
  • 254
  • 255
  • 256
  • 257
  • 258
  • 259
  • 260

Notes to consolidated financial statements
JPMorgan Chase & Co./2009 Annual Report 178
Derivative receivables and payables mark-to-market
The following table summarizes the fair values of derivative receivables and payables by contract type after netting adjustments as of December 31,
2009 and 2008.
December 31, (in millions) 2009 2008
Derivative receivables:
Interest rate(a) $ 26,777 $ 49,996
Credit 18,815 44,695
Foreign exchange(a) 21,984 38,820
Equity 6,635 14,285
Commodity 5,999 14,830
Total derivative receivables $ 80,210 $ 162,626
Trading liabilities
Derivative payables:
Interest rate(a) $ 15,220 $ 27,645
Credit 10,504 23,566
Foreign exchange(a) 19,818 41,156
Equity 11,554 17,316
Commodity 3,029 11,921
Total derivative payables $ 60,125 $ 121,604
(a) In 2009, cross-currency interest rate swaps previously reported in interest rate contracts were reclassified to foreign exchange contracts to be more consistent with
industry practice. The effect of this change resulted in reclassifications of $14.1 billion of derivative receivables and $20.8 billion of derivative payables, between cross-
currency interest rate swaps and foreign exchange contracts, as of December 31, 2008.
Impact of derivatives and hedged items on the income statement and on other comprehensive income
The following table summarizes the total pretax impact of JPMorgan Chase’s derivative-related activities on the Firm’s Consolidated State-
ments of Income and Other Comprehensive Income for the year ended December 31, 2009, by accounting designation.
Derivative-related gains/(losses)
Consolidated Statements
of Income (in millions)
Fair value
hedges(a)
Cash flow
hedges
Net investment
hedges
Risk management
activities
Trading
activities(a) Total
Year ended December 31, 2009 $ 801 $ 62 $ (112) $ (6,590) $ 16,254 $ 10,415
Derivative-related net changes in other comprehensive income
Other Comprehensive Income/(loss)
Fair value
hedges
Cash flow
hedges
Net investment
hedges
Risk management
activities
Trading
activities
Total
Year ended December 31, 2009 $ — $ 643 $ (259) $ — $ — $ 384
(a) Includes the hedge accounting impact of the hedged item for fair value hedges, and includes cash instruments within trading activities.
The tables that follow reflect more detailed information regarding the derivative-related income statement impact by accounting designation
for the year ended December 31, 2009.