JP Morgan Chase 2010 Annual Report Download - page 97

JPMorgan Chase & Co./2010 Annual Report
97
Contractual cash obligations
In the normal course of business, the Firm enters into various
contractual obligations that may require future cash payments. On-
balance sheet obligations include deposits; secured and unsecured
borrowings (both short- and long-term); beneficial interests issued by
consolidated VIEs; current income taxes payable; accrued interest
payments and certain employee benefit-related obligations. In
addition, JPMorgan Chase has certain off-balance-sheet contractual
obligations that may require future cash payments; these include
unsettled reverse repurchase and securities borrowing agreements,
future interest payments, noncancelable operating leases, capital
expenditures related to real estate (including building purchase
commitments) and equipment; equity investment commitments; and
contracts to purchase future services.
The accompanying table summarizes, by remaining maturity,
JPMorgan Chase’s significant contractual cash obligations at
December 31, 2010. The contractual cash obligations included in the
table below reflect the minimum contractual obligation under legally
enforceable contracts with terms that are both fixed and
determinable. The carrying amount of on-balance sheet obligations
on the Consolidated Balance Sheets may differ from the amounts of
the obligations reported below. Excluded are contingent payments
associated with certain acquisitions, and loan repurchase liabilities.
For a discussion of loan repurchase liabilities, see Repurchase liability
on pages 98–101 of this Annual Report. For further discussion of
other obligations, see the Notes to Consolidated Financial Statements
in this Annual Report.
Contractual cash obligations
2010
2009
By remaining maturity at December 31, (in millions) 2011 2012-2013 2014-2015 After 2015
Total
Total
On-balance sheet obligations
Deposits
(a)
$ 910,802 $ 12,084 $ 4,139 $ 657 $ 927,682 $ 935,265
Federal funds purchased and securities loaned or
sold under repurchase agreements 272,602 2,167 1,059 816 276,644 261,413
Commercial paper 35,363 — — — 35,363 41,794
Other borrowed funds
(a)
33,758 8,833 4,030 915 47,536 50,398
Beneficial interests issued by consolidated VIEs 38,989 24,310 4,708 9,642 77,649 15,225
Long-term debt
(a)
41,290 64,544 38,272 82,403 226,509
242,465
Current income taxes payable
(b)
— — — — — 457
Other
(
c)
2,450 1,141 961 2,777 7,329 7,438
Total on-balance sheet obligations 1,335,254 113,079 53,169 97,210 1,598,712 1,554,455
Off-balance sheet obligations
Unsettled reverse repurchase and securities
borrowing agreements(d) 39,927 — — — 39,927 48,187
Contractual interest payments
(e)
12,887 13,089 9,297 43,181 78,454 77,015
Operating leases
(f)
1,884 3,478 2,860 7,778 16,000 15,952
Building purchase commitments
(g)
258 — — — 258 670
Equity investment commitments
(h)
1,296 9 23 1,140 2,468 2,374
Contractual purchases and capital expenditures 1,384 701 335 402 2,822 3,104
Obligations under affinity and co-brand programs 990 2,002 1,475 1,334 5,801 6,898
Other 142 120 32 15 309 15
Total off-balance sheet obligations 58,768 19,399 14,022 53,850 146,039 154,215
Total contractual cash obligations $ 1,394,022 $ 132,478 $ 67,191 $ 151,060 $ 1,744,751 $ 1,708,670
(a) Excludes structured notes where the Firm is not obligated to return a stated amount of principal at the maturity of the notes, but is obligated to return an amount based
on the performance of the structured notes.
(b) 2011 excludes the expected benefit of net prepayments of income taxes as of December 31, 2010.
(c) Primarily includes deferred annuity contracts, pension and postretirement obligations and insurance liabilities.
(d) For further information, refer to Unsettled reverse repurchase and securities borrowing agreements in Note 30 on page 278 of this Annual Report.
(e) Includes accrued interest and future contractual interest obligations. Excludes interest related to structured notes where the Firm’s payment obligation is based on the
performance of certain benchmarks.
(f) Includes noncancelable operating leases for premises and equipment used primarily for banking purposes and for energy-related tolling service agreements. Excludes
the benefit of noncancelable sublease rentals of $1.8 billion at both December 31, 2010 and 2009.
(g) For further information, refer to Building purchase commitments in Note 30 on page 278 of this Annual Report.
(h) At December 31, 2010 and 2009, includes unfunded commitments of $1.0 billion and $1.5 billion, respectively, to third-party private equity funds that are generally fair
valued at net asset value as discussed in Note 3 on pages 170–187 of this Annual Report; and $1.4 billion and $897 million, respectively, to other equity investments.