JP Morgan Chase 2009 Annual Report Download - page 250

Notes to consolidated financial statements
JPMorgan Chase & Co./2009 Annual Report
248
Note 35 – Parent company
Parent company – statements of income
Year ended December 31, (in millions) 2009 2008 2007
Income
Dividends from subsidiaries:
Bank and bank holding company $ 15,235 $ 3,085
$ 5,834
Nonbank(a) 1,036 1,687
2,463
Interest income from subsidiaries 1,501 4,539
5,082
Other interest income 266 212
263
Other income from subsidiaries,
primarily fees:
Bank and bank holding company 233 244
182
Nonbank 742 95
960
Other income/(loss) 844 (1,038)
(131
)
Total income 19,857 8,824 14,653
Expense
Interest expense to subsidiaries(a) 1,118 1,302 1,239
Other interest expense 4,696 6,879
6,427
Compensation expense 574 43
125
Other noninterest expense 414 732
329
Total expense 6,802 8,956
8,120
Income/(loss) before income tax benefit
and undistributed net income of
subsidiaries 13,055 (132)
6,533
Income tax benefit 1,269 2,582 589
Equity in undistributed net income of
subsidiaries (2,596) 3,155
8,243
Net income $ 11,728 $ 5,605
$ 15,365
Parent company – balance sheets
December 31, (in millions) 2009 2008
Assets
Cash and due from banks $ 102 $ 35
Deposits with banking subsidiaries 87,893 60,551
Trading assets 14,808 12,487
Available-for-sale securities 2,647 1,587
Loans 1,316 1,525
Advances to, and receivables from, subsidiaries:
Bank and bank holding company 54,152 33,293
Nonbank 81,365 131,032
Investments (at equity) in subsidiaries:
Bank and bank holding company 157,412 153,140
Nonbank(a) 32,547 27,968
Goodwill and other intangibles 1,104 1,616
Other assets 14,793 12,934
Total assets $ 448,139 $ 436,168
Liabilities and stockholders’ equity
Borrowings from, and payables to, subsidiaries(a) $ 39,532 $ 44,467
Other borrowed funds, primarily commercial
paper 41,454 39,560
Other liabilities 8,035 9,363
Long-term debt(b) 193,753 175,894
Total liabilities 282,774 269,284
Total stockholders’ equity 165,365 166,884
Total liabilities and stockholders’ equity $ 448,139 $ 436,168
Parent company – statements of cash flows
Year ended December 31, (in millions) 2009 2008 2007
Operating activities
Net income $ 11,728 $ 5,605 $ 15,365
Less: Net income of subsidiaries(a) 13,675 7,927 16,540
Parent company net loss (1,947) (2,322) (1,175)
Add: Cash dividends from subsidiaries(a) 16,054 4,648 8,061
Other, net 1,852 1,920 3,496
Net cash provided by operating
activities 15,959 4,246 10,382
Investing activities
Net change in:
Deposits with banking subsidiaries (27,342) (7,579) (34,213)
Available-for-sale securities:
Purchases (1,454) (1,475) (104)
Proceeds from sales and maturities 522 — 318
Loans, net 209 (102) (452)
Advances to subsidiaries, net 28,808 (82,725) (24,553)
Investments (at equity) in subsidiaries, net(a) (6,582) (26,212) (4,135)
Net cash used in investing activities (5,839) (118,093) (63,139)
Financing activities
Net change in borrowings from
subsidiaries(a) (4,935) 20,529 4,755
Net change in other borrowed funds 1,894 (12,880) 31,429
Proceeds from the issuance of long-term
debt 32,304 50,013 38,986
Proceeds from the assumption of
subsidiaries long-term debt(c) 15,264 39,778 —
Repayments of long-term debt (31,964) (22,972) (11,662)
Proceeds from issuance of common stock 5,756 11,500 —
Excess tax benefits related to stock-based
compensation 17 148 365
Proceeds from issuance of preferred stock
and Warrant to the U.S. Treasury — 25,000 —
Proceeds from issuance of preferred
stock(d) — 8,098 —
Redemption of preferred stock issued to
the U.S. Treasury (25,000) — —
Repurchases of treasury stock — — (8,178)
Dividends paid (3,422) (5,911) (5,051)
All other financing activities, net 33 469 1,467
Net cash provided by financing
activities (10,053) 113,772 52,111
Net increase/(decrease) in cash and due
from banks 67 (75) (646)
Cash and due from banks at the
beginning of the year, primarily with
bank subsidiaries 35 110 756
Cash and due from banks at the end
of the year, primarily with bank
subsidiaries $ 102 $ 35 $ 110
Cash interest paid $ 5,629 $ 7,485 $ 7,470
Cash income taxes paid 3,124 156 5,074
(a) Subsidiaries include trusts that issued guaranteed capital debt securities (“issuer trusts”). The Parent received dividends of $14 million, $15 million and $18 million
from the issuer trusts in 2009, 2008 and 2007, respectively. For further discussion on these issuer trusts, see Note 22 on page 229 of this Annual Report.
(b) At December 31, 2009, long-term debt that contractually matures in 2010 through 2014 totaled $30.2 billion, $38.3 billion, $41.7 billion, $15.1 billion and $19.2
billion, respectively.
(c) Represents the assumption of Bear Stearns long-term debt by JPMorgan Chase & Co.
(d) 2008 included the conversion of Bear Stearns’ preferred stock into JPMorgan Chase preferred stock.