JP Morgan Chase 2014 Annual Report Download - page 308

Notes to consolidated financial statements
306 JPMorgan Chase & Co./2014 Annual Report
Note 34 – Parent company
Parent company – Statements of income and comprehensive income
Year ended December 31,
(in millions) 2014 2013 2012
Income
Dividends from subsidiaries and
affiliates:
Bank and bank holding company $ — $ 1,175 $ 4,828
Nonbank(a) 14,716 876 1,972
Interest income from subsidiaries 378 757 1,041
Other interest income 284 303 293
Other income from subsidiaries,
primarily fees:
Bank and bank holding company 779 318 939
Nonbank 52 2,065 1,207
Other income/(loss) 508 (1,380) 579
Total income 16,717 4,114 10,859
Expense
Interest expense to subsidiaries and
affiliates(a) 169 309 836
Other interest expense 3,645 4,031 4,679
Other noninterest expense 827 9,597 2,399
Total expense 4,641 13,937 7,914
Income (loss) before income tax
benefit and undistributed net
income of subsidiaries 12,076 (9,823) 2,945
Income tax benefit 1,430 4,301 1,665
Equity in undistributed net income
of subsidiaries 8,256 23,445 16,674
Net income $ 21,762 $ 17,923 $ 21,284
Other comprehensive income, net 990 (2,903) 3,158
Comprehensive income $ 22,752 $ 15,020 $ 24,442
Parent company – Balance sheets
December 31, (in millions) 2014 2013
Assets
Cash and due from banks $ 211 $ 264
Deposits with banking subsidiaries 95,884 64,843
Trading assets 18,222 13,727
Available-for-sale securities 3,321 15,228
Loans 2,260 2,829
Advances to, and receivables from,
subsidiaries:
Bank and bank holding company 33,810 21,693
Nonbank 52,626 68,788
Investments (at equity) in subsidiaries and
affiliates:
Bank and bank holding company 216,070 196,950
Nonbank(a) 41,173 50,996
Other assets 18,645 18,877
Total assets $ 482,222 $ 454,195
Liabilities and stockholders’ equity
Borrowings from, and payables to,
subsidiaries and affiliates(a) $ 17,442 $ 14,328
Other borrowed funds, primarily commercial
paper 49,586 55,454
Other liabilities 11,918 11,367
Long-term debt(b)(c) 171,211 161,868
Total liabilities(c) 250,157 243,017
Total stockholders’ equity 232,065 211,178
Total liabilities and stockholders’ equity $ 482,222 $ 454,195
Parent company – Statements of cash flows
Year ended December 31,
(in millions) 2014 2013 2012
Operating activities
Net income $ 21,762 $ 17,923 $ 21,284
Less: Net income of subsidiaries
and affiliates(a) 22,972 25,496 23,474
Parent company net loss (1,210) (7,573) (2,190)
Cash dividends from subsidiaries
and affiliates(a) 14,714 1,917 6,798
Other operating adjustments (1,698) 3,180 2,376
Net cash provided by/(used in)
operating activities 11,806 (2,476) 6,984
Investing activities
Net change in:
Deposits with banking
subsidiaries (31,040) 10,679 16,100
Available-for-sale securities:
Proceeds from paydowns and
maturities 12,076 61 621
Purchases —(12,009) (364)
Other changes in loans, net (319) (713) (350)
Advances to and investments in
subsidiaries and affiliates, net 3,306 14,469 9,497
All other investing activities, net 32 22 25
Net cash provided by/(used in)
investing activities (15,945) 12,509 25,529
Financing activities
Net change in:
Borrowings from subsidiaries and
affiliates(a) 4,454 (2,715) (14,038)
Other borrowed funds (5,778) (7,297) 3,736
Proceeds from the issuance of
long-term debt 40,284 31,303 28,172
Payments of long-term debt (31,050) (21,510) (44,240)
Excess tax benefits related to
stock-based compensation 407 137 255
Proceeds from issuance of
preferred stock 8,847 3,873 1,234
Redemption of preferred stock —(1,800) —
Treasury stock and warrants
repurchased (4,760) (4,789) (1,653)
Dividends paid (6,990) (6,056) (5,194)
All other financing activities, net (1,328) (1,131) (701)
Net cash provided by/(used in)
financing activities 4,086 (9,985) (32,429)
Net increase/(decrease) in cash
and due from banks (53) 48 84
Cash and due from banks at the
beginning of the year, primarily
with bank subsidiaries 264 216 132
Cash and due from banks at the
end of the year, primarily with
bank subsidiaries $ 211 $ 264 $ 216
Cash interest paid $ 3,921 $ 4,409 $ 5,690
Cash income taxes paid, net 200 2,390 3,080
(a) Affiliates include trusts that issued guaranteed capital debt securities (“issuer trusts”).
The Parent received dividends of $2 million, $5 million and $12 million from the issuer
trusts in 2014, 2013 and 2012, respectively. For further discussion on these issuer
trusts, see Note 21.
(b) At December 31, 2014, long-term debt that contractually matures in 2015 through
2019 totaled $24.4 billion, $25.5 billion, $23.0 billion, $19.3 billion and $11.3
billion, respectively.
(c) For information regarding the Firm’s guarantees of its subsidiaries’ obligations, see
Note 21 and Note 29.