JP Morgan Chase 2010 Annual Report Download - page 290

Notes to consolidated financial statements
290 JPMorgan Chase & Co./2010 Annual Report
Note 33 – International operations
The following table presents income statement–related information
for JPMorgan Chase by major international geographic area. The
Firm defines international activities as business transactions that
involve customers residing outside of the U.S., and the information
presented below is based primarily upon the domicile of the cus-
tomer, the location from which the customer relationship is man-
aged or the location of the trading desk. However, many of the
Firm’s U.S. operations serve international businesses.
As the Firm’s operations are highly integrated, estimates and sub-
jective assumptions have been made to apportion revenue and
expense between U.S. and international operations. These esti-
mates and assumptions are consistent with the allocations used for
the Firm’s segment reporting as set forth in Note 34 on pages 290–
293 of this Annual Report.
The Firm’s long-lived assets for the periods presented are not
considered by management to be significant in relation to total
assets. The majority of the Firm’s long-lived assets are located in
the United States.
Year ended December 31, (in millions) Revenue(a) Expense(b)
Income
(
loss
)
before income
tax expense/(benefit)
and extraordinary gain Net income
Average assets
2010
Europe/Middle East and Africa
$
14,113
$
8,
712
$
5,
401
$
3,
655
$
425
,
374
Asia and Pacific
5,791
3,577
2,214
1,
470
13
4,
787
Latin America and the Caribbean
1,810
1,152
658
395
30,
021
Other
510
413
97
59
6,579
Total international
22,224
13,854
8,370
5,
579
596
,
761
Total U.S.
80,470
63,
981
1
6,489
11,791
1,
456
,
490
Total
$
102,694
$
77,835
$
24,859
$
17,370
$
2,053,2
51
2009
Europe/Middle East and Africa
$
16,915
$
8,610
$
8,305
$
5,485
$
383,
003
Asia and Pacific
5,088
3,438
1,650
1,119
100,
932
Latin America and the Caribbean
1,982
1,112
870
513
23,227
Other
659
499
160
105
7,074
Total internati
onal
24,644 13,659 10,985 7,222 514,236
Total U.S.
75,790
70,708
5,082
4,506
1,509,
965
Total
$ 100,434 $ 84,367 $ 16,067 $ 11,728 $ 2,024,201
2008
Europe/Middle East and Africa
$
11,449
$
8,403
$
3,046
$
2,483
$
352,
5
58
Asia
and Pacific
4,097
3,580
517
672
108,
751
Latin America and the Caribbean
1,353
903
450
274
30,
940
Other
499
410
89
21
6,
553
Total international
17,398 13,296 4,102 3,450 498,802
Total U.S.
49,854
51,183
(1,329)
2,155
1,292,
815
Total
$ 67,252 $ 64,479 $ 2,773 $ 5,605 $ 1,791,617
(a) Revenue is composed of net interest income and noninterest revenue.
(b) Expense is composed of noninterest expense and the provision for credit losses.
Note 34 – Business segments
The Firm is managed on a line-of-business basis. There are six major
reportable business segments — Investment Bank, Retail Financial
Services, Card Services, Commercial Banking, Treasury & Securities Ser-
vices and Asset Management, as well as a Corporate/Private Equity
segment. The business segments are determined based on the products
and services provided, or the type of customer served, and they reflect the
manner in which financial information is currently evaluated by manage-
ment. Results of these lines of business are presented on a managed
basis. For a definition of managed basis, see Explanation and Reconcilia-
tion of the Firm’s use of non-GAAP financial measures, on pages 64–65
of this Annual Report. For a further discussion concerning JPMorgan
Chase’s business segments, see Business segment results on pages 67–
68 of this Annual Report.
The following is a description of each of the Firm’s business segments:
Investment Bank
J.P. Morgan is one of the world’s leading investment banks, with
deep client relationships and broad product capabilities. The clients
of IB are corporations, financial institutions, governments and
institutional investors. The Firm offers a full range of investment
banking products and services in all major capital markets, includ-
ing advising on corporate strategy and structure, capital-raising in
equity and debt markets, sophisticated risk management, market-
making in cash securities and derivative instruments, prime broker-
age, and research.