JP Morgan Chase 2014 Annual Report Download - page 307

JPMorgan Chase & Co./2014 Annual Report 305
On at least an annual basis, the Firm assesses the level of
capital required for each line of business as well as the
assumptions and methodologies used to allocate capital to
its lines of business and updates equity allocations to its
lines of business as refinements are implemented.
Preferred stock dividend allocation reporting change
As part of its funds transfer pricing process, the Firm
allocates substantially all of the cost of its outstanding
preferred stock to its reportable business segments, while
retaining the balance of the cost in Corporate. Prior to the
fourth quarter of 2014, this cost was allocated to the Firm’s
reportable business segments as interest expense, with an
offset recorded as interest income in Corporate. Effective
with the fourth quarter of 2014, this cost is no longer
included in interest income and interest expense in the
segments, but rather is now included in net income
applicable to common equity to be consistent with the
presentation of firmwide results. As a result of this
reporting change, net interest income and net income in the
reportable business segments increases; however, there
was no impact to the segments’ return on common equity
(“ROE”). The Firm’s net interest income, net income,
Consolidated balance sheets and consolidated results of
operations were not impacted by this reporting change, as
preferred stock dividends have been and continue to be
distributed from retained earnings and, accordingly, were
never reported as a component of the Firm’s consolidated
net interest income or net income. Prior period segment
amounts have been revised to conform with the current
period presentation.
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Asset Management Corporate Reconciling Items(a) Total
2014 2013 2012 2014 2013 2012 2014 2013 2012 2014 2013 2012
$ 9,588 $ 9,029 $ 7,847 $ 1,972 $ 3,093 $ 190 $ (2,733) $ (2,495) $ (2,116) $ 50,571 $ 53,287 $ 52,121
2,440 2,376 2,163 (1,960) (3,115) (2,262) (985) (697) (743) 43,634 43,319 44,910
12,028 11,405 10,010 12 (22) (2,072) (3,718) (3,192) (2,859) 94,205 96,606 97,031
465 86 (35) (28) (37) —— — 3,139 225 3,385
8,538 8,016 7,104 1,159 10,255 4,559 —— — 61,274 70,467 64,729
3,486 3,324 2,820 (1,112) (10,249) (6,594) (3,718) (3,192) (2,859) 29,792 25,914 28,917
1,333 1,241 1,078 (1,976) (3,493) (3,974) (3,718) (3,192) (2,859) 8,030 7,991 7,633
$ 2,153 $ 2,083 $ 1,742 $ 864 $ (6,756) $ (2,620) $ — $ — $ — $ 21,762 $ 17,923 $ 21,284
$ 9,000 $ 9,000 $ 7,000 $ 72,400 $ 71,409 $ 77,352 $ — $ — $ — $ 207,400 $ 196,409 $ 184,352
128,701 122,414 108,999 931,705 805,987 725,251 NA NA NA 2,573,126 2,415,689 2,359,141
23% 23% 24% NM NM NM NM NM NM 10% 9% 11%
71 70 71 NM NM NM NM NM NM 65 73 67