JP Morgan Chase 2006 Annual Report Download - page 148

146 JPMorgan Chase & Co. / 2006 Annual Report
MSR risk management revenue: Includes changes in MSR asset fair value
due to inputs or assumptions in model and derivative valuation adjustments.
Material legal proceedings: Refers to certain specific litigation originally
discussed in the section “Legal Proceedings” in the Firm’s Annual Report on
Form 10-K for the year ended December 31, 2002. Of such legal proceedings,
some lawsuits related to Enron, WorldCom and the IPO allocation allegations
remain outstanding as of the date of this Annual Report, as discussed in Part I,
Item 3, Legal proceedings in the Firm’s Annual Report on Form 10-K for the
year ended December 31, 2006, to which reference is hereby made; other such
legal proceedings have been resolved.
NA: Data is not applicable or available for the period presented.
Net yield on interest-earning assets: The average rate for interest-
earning assets less the average rate paid for all sources of funds.
NM: Not meaningful.
OPEB: Other postretirement employee benefits.
Overhead ratio: Noninterest expense as a percentage of Total net revenue.
Principal transactions: Represents Trading revenue (which includes physical
commodities carried at the lower of cost or fair value), primarily in the IB, plus
Private equity gains (losses), primarily in the Private Equity business of
Corporate.
Reported basis: Financial statements prepared under accounting principles
generally accepted in the United States of America (“U.S. GAAP”). The report-
ed basis includes the impact of credit card securitizations, but excludes the
impact of taxable-equivalent adjustments.
Return on common equity less goodwill: Represents net income appli-
cable to common stock divided by total average common equity (net of good-
will). The Firm uses return on equity less goodwill, a non-GAAP financial
measure, to evaluate the operating performance of the Firm. The Firm also
utilizes this measure to facilitate operating comparisons to other competitors.
SFAS: Statement of Financial Accounting Standards.
SFAS 5: “Accounting for Contingencies.”
SFAS 13: “Accounting for Leases.”
SFAS 52: “Foreign Currency Translation.”
SFAS 87: “Employers’ Accounting for Pensions.”
SFAS 88: “Employers’ Accounting for Settlements and Curtailments of
Defined Benefit Pension Plans and for Termination Benefits.”
SFAS 106: “Employers’ Accounting for Postretirement Benefits
Other Than Pensions.”
SFAS 107: “Disclosures about Fair Value of Financial Instruments.”
SFAS 109: “Accounting for Income Taxes.”
SFAS 114: “Accounting by Creditors for Impairment of a Loan – an amend-
ment of FASB Statements No. 5 and 15.”
SFAS 115: “Accounting for Certain Investments in Debt and Equity Securities.”
SFAS 123: “Accounting for Stock-Based Compensation.”
SFAS 123R: “Share-Based Payment.”
SFAS 128: “Earnings per Share.”
SFAS 133: “Accounting for Derivative Instruments and Hedging Activities.”
SFAS 138: “Accounting for Certain Derivative Instruments and Certain
Hedging Activities – an amendment of FASB Statement No. 133.”
SFAS 140: “Accounting for Transfers and Servicing of Financial Assets and
Extinguishments of Liabilities – a replacement of FASB Statement No. 125.”
SFAS 142: “Goodwill and Other Intangible Assets.”
SFAS 143: “Accounting for Asset Retirement Obligations.”
SFAS 149: “Amendment of Statement No. 133 on Derivative Instruments and
Hedging Activities.”
SFAS 155: “Accounting for Certain Hybrid Financial Instruments – an amend-
ment of FASB Statements No. 133 and 140.”
SFAS 156: “Accounting for Servicing of Financial Assets – an amendment of
FASB Statement No. 140.”
SFAS 157: “Fair Value Measurements.”
SFAS 158: “Employers’ Accounting for Defined Benefit Pension and Other
Postretirement Plans – an amendment of FASB Statements No. 87, 88, 106,
and 132(R).”
SFAS 159: “The Fair Value Option for Financial Assets and Financial
Liabilities – Including an amendment of FASB Statement No. 115.”
Staff Accounting Bulletin (“SAB”) 107: “Application of Statement of
Financial Accounting Standards No. 123 (revised 2004), Share-Based Payment.”
Statement of Position (“SOP”) 98-1: “Accounting for the Costs of
Computer Software Developed or Obtained for Internal Use.”
Stress testing: A scenario that measures market risk under unlikely but
plausible events in abnormal markets.
Transactor loan: Loan in which the outstanding balance is paid in full by
payment due date.
Unaudited: The financial statements and information included throughout
this document, which are labeled unaudited, have not been subjected to
auditing procedures sufficient to permit an independent certified public
accountant to express an opinion thereon.
U.S. GAAP: Accounting principles generally accepted in the United States
of America.
U.S. government and federal agency obligations: Obligations of the
U.S. government or an instrumentality of the U.S. government whose obligations
are fully and explicitly guaranteed as to the timely payment of principal and
interest by the full faith and credit of the U.S. government.
U.S. government-sponsored enterprise obligations: Obligations of
agencies originally established or chartered by the U.S. government to serve
public purposes as specified by the U.S. Congress; these obligations are not
explicitly guaranteed as to the timely payment of principal and interest by the
full faith and credit of the U.S. government.
Value-at-risk (“VAR”): A measure of the dollar amount of potential loss
from adverse market moves in an ordinary market environment.
GLOSSARY OF TERMS
JPMorgan Chase & Co.