JP Morgan Chase 2008 Annual Report Download - page 83

JPMorgan Chase & Co./ 2008 Annual Report 81
The following table presents maturity information for off-balance sheet lending-related financial instruments, guarantees and commitments.
Off-balance sheet lending-related financial instruments and guarantees
By remaining maturity at December 31, 2008 2007
(in millions) 2009 2010-2011 2012-2013 After 2013 Total Total
Lending-related
Consumer(a) $ 642,978 $ 4,098 $ 9,916 $ 84,515 $ 741,507 $ 815,936
Wholesale:
Other unfunded commitments to extend credit(b)(c)(d)(e) 93,307 69,479 53,567 9,510 225,863 250,954
Asset purchase agreements(f) 16,467 25,574 9,983 1,705 53,729 90,105
Standby letters of credit and guarantees(c)(g)(h) 25,998 35,288 30,650 3,416 95,352 100,222
Other letters of credit(c) 3,889 718 240 80 4,927 5,371
Total wholesale 139,661 131,059 94,440 14,711 379,871 446,652
Total lending-related $ 782,639 $135,157 $ 104,356 $ 99,226 $ 1,121,378 $1,262,588
Other guarantees
Securities lending guarantees(i) $ 169,281 $ — $ — $ — $ 169,281 $ 385,758
Residual value guarantees — 670 — — 670 NA
Derivatives qualifying as guarantees(j) 9,537 28,970 15,452 29,876 83,835 85,262
Contractual cash obligations
By remaining maturity at December 31,
(in millions)
Time deposits $ 278,520 $ 11,414 $ 8,139 $ 1,028 $ 299,101 $ 249,877
Advances from the Federal Home Loan Banks 47,406 21,089 738 954 70,187 450
Long-term debt 36,026 78,199 51,275 86,594 252,094 183,862
Trust preferred capital debt securities — — — 18,589 18,589 15,148
FIN 46R long-term beneficial interests(k) 67 199 1,289 3,450 5,005 7,209
Operating leases(l) 1,676 3,215 2,843 9,134 16,868 10,908
Contractual purchases and capital expenditures 1,356 878 219 234 2,687 2,434
Obligations under affinity and co-brand programs 1,174 2,086 1,999 2,879 8,138 5,477
Other liabilities(m) 666 809 865 2,665 5,005 5,656
Total $ 366,891 $117,889 $ 67,367 $125,527 $ 677,674 $ 481,021
(a) Includes credit card and home equity lending-related commitments of $623.7 billion and $95.7 billion, respectively, at December 31, 2008; and $714.8 billion and $74.2 billion,
respectively, at December 31, 2007. These amounts for credit card and home equity lending-related commitments represent the total available credit for these products.The Firm has
not experienced, and does not anticipate, that all available lines of credit for these products will be utilized at the same time. The Firm can reduce or cancel these lines of credit by
providing the borrower prior notice or, in some cases, without notice as permitted by law.
(b) Includes unused advised lines of credit totaling $36.3 billion and $38.4 billion at December 31, 2008 and 2007, respectively, which are not legally binding. In regulatory filings with
the Federal Reserve, unused advised lines are not reportable. See the Glossary of terms, on page 230 of this Annual Report, for the Firm’s definition of advised lines of credit.
(c) Represents contractual amount net of risk participations totaling $28.3 billion at both December 31, 2008 and 2007.
(d) Excludes unfunded commitments to third-party private equity funds of $1.4 billion and $881 million at December 31, 2008 and 2007, respectively. Also excluded unfunded commit-
ments for other equity investments of $1.0 billion and $903 million at December 31, 2008 and 2007, respectively.
(e) Includes commitments to investment and noninvestment grade counterparties in connection with leveraged acquisitions of $3.6 billion and $8.2 billion at December 31, 2008 and
2007, respectively.
(f) Largely represents asset purchase agreements to the Firm’s administered multi-seller, asset-backed commercial paper conduits. The maturity is based upon the weighted-average life of
the underlying assets in the SPE, which are based upon the remainder of each conduit transaction’s committed liquidity plus either the expected weighted average life of the assets
should the committed liquidity expire without renewal, or the expected time to sell the underlying assets in the securitization market. It also includes $96 million and $1.1 billion of
asset purchase agreements to other third-party entities at December 31, 2008 and 2007, respectively.
(g) JPMorgan Chase held collateral relating to $31.0 billion and $31.5 billion of these arrangements at December 31, 2008 and 2007, respectively. Prior periods have been revised to
conform to the current presentation.
(h) Includes unissued standby letters of credit commitments of $39.5 billion and $50.7 billion at December 31, 2008 and 2007, respectively.
(i) Collateral held by the Firm in support of securities lending indemnification agreements was $170.1 billion and $390.5 billion at December 31, 2008 and 2007, respectively. Securities
lending collateral comprises primarily cash, securities issued by governments that are members of the Organisation for Economic Co-operation and Development and U.S. government
agencies.
(j) Represents notional amounts of derivatives qualifying as guarantees. For further discussion of guarantees, see Note 33 on pages 218–222 of this Annual Report.
(k) Included on the Consolidated Balance Sheets in beneficial interests issued by consolidated variable interest entities.
(l) 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 $2.3 billion and $1.3 billion at December 31, 2008 and 2007, respectively.
(m) Includes deferred annuity contracts. Excludes the $1.3 billion discretionary contribution to the Firm’s U.S. defined benefit pension plan that was made on January 15, 2009 (for further
discussion, see Note 9 on pages 161–167), and contributions to the U.S. and non-U.S. other postretirement benefits plans, if any, as these contributions are not reasonably estimable
at this time. Also excluded are unrecognized tax benefits of $5.9 billion and $4.8 billion at December 31, 2008 and 2007, respectively, as the timing and amount of future cash pay-
ments are not determinable at this time.