JP Morgan Chase 2003 Annual Report Download - page 127

J.P. Morgan Chase & Co. / 2003 Annual Report 125
Parent company – balance sheet
December 31, (in millions) 2003 2002
Asset s
Cash with banks $148 $108
Deposits with banking subsidiaries 12,554 9,994
Securities purchased under resale agreements,
primarily with nonbank subsidiaries 285 384
Trading assets 3,915 4,087
Available-for-sale securities 2,099 1,081
Loans 550 60
Advances to, and receivables from, subsidiaries:
Bank and bank holding company 9,239 9,521
Nonbank 24,489 21,094
Investment (at equity) in subsidiaries:
Bank and bank holding company 43,853 40,709
Nonbank(b) 10,399 10,826
Goodwill and other intangibles 860 863
Other assets 9,213 8,681
Total assets $117,604 $107,408
Liabilities and stockholders’ equit y
Borrowings from, and payables to, subsidiaries(b) $9,488 $ 7,483
Other borrowed funds, primarily commercial paper 16,560 17,587
Other liabilities 4,767 4,937
Long-term debt(c) 40,635 35,095
Total liabilities 71,450 65,102
Stockholders’ equity 46,154 42,306
Total liabilities and stockholders’ equity $117,604 $107,408
Parent company
Parent company – statement of income
Year ended December 31, (in millions) 2003 2002 2001
Incom e
Dividends from bank and bank
holding company subsidiaries(a) $2,436 $3,079 $ 2,650
Dividends from nonbank subsidiaries(a)(b) 2,688 422 7,904
Interest income from subsidiaries 945 1,174 2,090
Other interest income 130 148 70
Other income from subsidiaries, primarily fees:
Bank and bank holding company 632 277 96
Nonbank 385 390 287
Other income (25) 264 110
Total income 7,191 5,754 13,207
Expense
Interest expense to subsidiaries(b) 422 405 491
Other interest expense 1,329 1,511 2,436
Compensation expense 348 378 244
Other noninterest expense 747 699 282
Total expense 2,846 2,993 3,453
Income before income tax benefit and
undistributed net income of subsidiaries 4,345 2,761 9,754
Income tax benefit 474 432 394
Equity in undistributed net income (loss)
of subsidiaries 1,900 (1,530) (8,458)
Income before effect of accounting change 6,719 1,663 1,690
Net effect of change in accounting principle —— 4
Net income $6,719 $1,663 $ 1,694
Note 33 Parent company – statement of cash flows
Year ended December 31, (in millions) 2003 2002 2001
Operat ing act ivities
Net income $6,719 $1,663 $ 1,694
Less: Net income of subsidiaries 7,017 1,971 2,096
Parent company net loss (298) (308) (402)
Add: Cash dividends from subsidiaries(a) 5,098 2,320 10,554
Other, net (272) (912) (926)
Net cash provided by operating activities 4,528 1,100 9,226
Investing activities
Net change in:
Deposits with banking subsidiaries (2,560) (3,755) 2,557
Securities purchased under
resale agreements, primarily with
nonbank subsidiaries 99 (40) 953
Loans (490) (27) 24
Advances to subsidiaries (3,165) 6,172 3,931
Investment (at equity) in subsidiaries (2,052) (2,284) (5,303)
Other, net 12 (37) —
Available-for-sale securities:
Purchases (607) (1,171) (1,643)
Proceeds from sales and maturities 654 1,877 14
Net cash (used in) provided by
investing activities (8,109) 735 533
Financing activities
Net change in borrowings from
subsidiaries(b) 2,005 573 (526)
Net change in other borrowed funds (2,104) (915) (3,272)
Proceeds from the issuance of long-term debt 12,105 12,533 7,258
Repayments of long-term debt (6,733) (12,271) (10,184)
Proceeds from the issuance of stock and
stock-related awards 1,213 725 1,429
Redemption of preferred stock ——(511)
Treasury stock purchased ——(871)
Cash dividends paid (2,865) (2,784) (2,697)
Net cash provided by (used in)
financing activities 3,621 (2,139) (9,374)
Net increase (decrease) in cash with banks 40 (304) 385
Cash with banks at the beginning of the year 108 412 27
Cash with banks at the end of the year,
primarily, with bank subsidiaries $148 $108 $412
Cash interest paid $1,918 $1,829 $ 2,950
Cash income taxes paid (refund received) $754 $592 $ (250)
(a) Dividends in 2002 include a stock dividend of $1.2 billion from the mortgage business, which
was contributed to JPMorgan Chase Bank. Cash dividends in 2001 include funds from Robert
Fleming Holdings Limited and The Beacon Group, LLC.
(b) Subsidiaries include trusts that issued guaranteed capital debt securities (“ issuer trusts” ). As a
result of FIN 46, the Parent deconsolidated these trusts. In 2003, the Parent received dividends
of $11 million from the issuer trusts. For a further discussion on issuer trusts, see Note 18 on
pages 110-111 of this Annual Report.
(c) At December 31, 2003, all debt that contractually matures in 2004 through 2008 totaled $5.8
billion, $7.8 billion, $4.6 billion, $6.4 billion and $4.5 billion, respectively.