JP Morgan Chase 2009 Annual Report Download - page 228

Notes to consolidated financial statements
JPMorgan Chase & Co./2009 Annual Report
226
Note 18 – Premises and equipment
Premises and equipment, including leasehold improvements, are
carried at cost less accumulated depreciation and amortization.
JPMorgan Chase computes depreciation using the straight-line
method over the estimated useful life of an asset. For leasehold
improvements, the Firm uses the straight-line method computed
over the lesser of the remaining term of the leased facility or the
estimated useful life of the leased asset. JPMorgan Chase has
recorded immaterial asset retirement obligations related to asbes-
tos remediation in those cases where it has sufficient information to
estimate the obligations’ fair value.
JPMorgan Chase capitalizes certain costs associated with the
acquisition or development of internal-use software. Once the
software is ready for its intended use, these costs are amortized on
a straight-line basis over the software’s expected useful life and
reviewed for impairment on an ongoing basis.
Note 19 – Deposits
At December 31, 2009 and 2008, noninterest-bearing and interest-
bearing deposits were as follows.
December 31, (in millions) 2009 2008
U.S. offices:
Noninterest-bearing $ 204,003 $ 210,899
Interest-bearing (included $1,463
and $1,849 at fair value at
December 31, 2009 and 2008,
respectively) 439,104 511,077
Non-U.S. offices:
Noninterest-bearing 8,082 7,697
Interest-bearing (included $2,992
and $3,756 at fair value at
December 31, 2009 and 2008,
respectively) 287,178 279,604
Total $ 938,367 $ 1,009,277
At December 31, 2009 and 2008, time deposits in denominations
of $100,000 or more were as follows.
December 31, (in millions) 2009 2008
U.S. $ 90,552 $ 147,493
Non-U.S. 77,887 58,247
Total $ 168,439 $ 205,740
At December 31, 2009, the maturities of time deposits were as
follows.
December 31, 2009
(in millions) U.S. Non-U.S. Total
2010 $ 113,912 $ 97,465 $ 211,377
2011 9,489 654 10,143
2012 3,851 485 4,336
2013 2,783 634 3,417
2014 1,321 127 1,448
After 5 years 671 267 938
Total $ 132,027 $ 99,632 $ 231,659
On October 3, 2008, the Emergency Economic Stabilization Act of
2008 (the “2008 Act”) was signed into law. The 2008 Act tempo-
rarily increased the standard maximum FDIC deposit insurance from
$100,000 to $250,000 per depositor per institution through De-
cember 31, 2009. On May 20, 2009, the Helping Families Save
Their Homes Act of 2009 (the “2009 Act”) was signed into law.
The 2009 Act extends through December 31, 2013, the FDIC’s
temporary standard maximum deposit insurance amount of
$250,000 per depositor. On January 1, 2014, the standard maxi-
mum deposit insurance amount will return to $100,000 per deposi-
tor for all deposit accounts except Individual Retirement Accounts
(“IRAs”) and certain other retirement accounts, which will remain
at $250,000 per depositor.
In addition, on November 21, 2008, the FDIC released a final rule
on the FDIC Temporary Liquidity Guarantee Program (the “TLG
Program”). Under one component of this program, the Transaction
Account Guarantee Program (the "TAG Program") provides unlim-
ited deposit insurance through December 31, 2009, on certain
noninterest-bearing transaction accounts at FDIC-insured partici-
pating institutions. On December 4, 2008, the Firm elected to
participate in the TLG Program and, as a result, was required to pay
additional insurance premiums to the FDIC in an amount equal to
an annualized 10 basis points on balances in noninterest-bearing
transaction accounts that exceeded the $250,000 FDIC deposit
insurance limits, as determined on a quarterly basis. The expiration
date of the program was extended by six months, from December
31, 2009, to June 30, 2010, to provide continued support to those
institutions most affected by the recent financial crisis and phase
out the program in an orderly manner. On October 22, 2009, the
Firm notified the FDIC that, as of January 1, 2010, it would no
longer participate in the TAG Program. As a result of the Firm’s
decision to opt out of the program, after December 31, 2009, funds
held in noninterest-bearing transaction accounts will no longer be
guaranteed in full, but will be insured up to $250,000 under the
FDIC’s general deposit rules.