JP Morgan Chase 2012 Annual Report Download - page 287

JPMorgan Chase & Co./2012 Annual Report 297
Note 21 – Long-term debt
JPMorgan Chase issues long-term debt denominated in various currencies, although predominantly U.S. dollars, with both fixed
and variable interest rates. Included in senior and subordinated debt below are various equity-linked or other indexed
instruments, which the Firm has elected to measure at fair value. Changes in fair value are recorded in principal transactions
revenue in the Consolidated Statements of Income. The following table is a summary of long-term debt carrying values
(including unamortized original issue discount, valuation adjustments and fair value adjustments, where applicable) by
remaining contractual maturity as of December 31, 2012.
By remaining maturity at
December 31, 2012 2011
(in millions, except rates) Under 1 year 1-5 years After 5 years Total Total
Parent company
Senior debt: Fixed rate(a) $ 6,876 $ 47,101 $ 45,739 $ 99,716 $ 96,478
Variable rate(b) 10,049 22,706 6,010 38,765 55,779
Interest rates(c) 0.43-5.38% 0.35-7.00% 0.26-7.25% 0.26-7.25% 0.32-7.25%
Subordinated debt: Fixed rate $ 2,421 $ 8,259 $ 5,632 $ 16,312 $ 19,167
Variable rate — 3,431 9 3,440 1,954
Interest rates(c) 5.25-5.75% 0.61-6.13% 3.88-8.53% 0.61-8.53% 1.09-8.53%
Subtotal $ 19,346 $ 81,497 $ 57,390 $ 158,233 $ 173,378
Subsidiaries
FHLB advances: Fixed rate $ 1,510 $ 3,040 $ 162 $ 4,712 $ 4,738
Variable rate 2,321 23,012 12,000 37,333 13,085
Interest rates(c) 0.30-1.15% 0.30-2.04% 0.39-0.47% 0.30-2.04% 0.32-2.04%
Senior debt: Fixed rate $ 582 $ 2,397 $ 3,782 $ 6,761 $ 6,546
Variable rate 7,577 11,390 2,640 21,607 28,257
Interest rates(c) 0.33-2.10% 0.16-3.75% 1.00-7.28% 0.16-7.28% 0.13-14.21%
Subordinated debt: Fixed rate $ — $ 5,651 $ 1,862 $ 7,513 $ 8,755
Variable rate — 2,466 — 2,466 1,150
Interest rates(c) —% 0.64-6.00% 4.38-8.25% 0.64-8.25% 0.87-8.25%
Subtotal $ 11,990 $ 47,956 $ 20,446 $ 80,392 $ 62,531
Junior subordinated debt: Fixed rate $ — $ — $ 7,131 $ 7,131 $ 15,784
Variable rate — — 3,268 3,268 5,082
Interest rates(c) —% —% 0.81-8.75% 0.81-8.75% 0.93-8.75%
Subtotal $ — $ — $ 10,399 $ 10,399 $ 20,866
Total long-term debt(d)(e)(f) $ 31,336 $ 129,453 $ 88,235 $ 249,024 (h)(i) $ 256,775
Long-term beneficial interests:
Fixed rate $ 1,629 $ 5,502 $ 3,262 $ 10,393 $ 6,261
Variable rate 10,226 10,551 3,802 24,579 33,473
Interest rates 0.27-5.40% 0.23-5.63% 0.32-13.91% 0.23-13.91% 0.02-11.00%
Total long-term beneficial
interests(g) $ 11,855 $ 16,053 $ 7,064 $ 34,972 $ 39,734
(a) Included $8.4 billion as of December 31, 2011, that was guaranteed by the FDIC under the Temporary Liquidity Guarantee (“TLG”) Program. All long-
term debt guaranteed under the TLG Program matured prior to December 31, 2012.
(b) Included $11.9 billion as of December 31, 2011 that was guaranteed by the FDIC under the TLG Program. All long-term debt guaranteed under the TLG
Program matured prior to December 31, 2012.
(c) The interest rates shown are the range of contractual rates in effect at year-end, including non-U.S. dollar fixed- and variable-rate issuances, which
excludes the effects of the associated derivative instruments used in hedge accounting relationships, if applicable. The use of these derivative
instruments modifies the Firm’s exposure to the contractual interest rates disclosed in the table above. Including the effects of the hedge accounting
derivatives, the range of modified rates in effect at December 31, 2012, for total long-term debt was (0.76)% to 7.86%, versus the contractual range of
0.16% to 8.75% presented in the table above. The interest rate ranges shown exclude structured notes accounted for at fair value.
(d) Included long-term debt of $48.0 billion and $23.8 billion secured by assets totaling $112.8 billion and $89.4 billion at December 31, 2012 and 2011,
respectively. The amount of long-term debt secured by assets does not include amounts related to hybrid instruments.
(e) Included $30.8 billion and $34.7 billion of outstanding structured notes accounted for at fair value at December 31, 2012 and 2011, respectively.
(f) Included $1.6 billion and $2.1 billion of outstanding zero-coupon notes at December 31, 2012 and 2011, respectively. The aggregate principal amount
of these notes at their respective maturities was $3.0 billion and $5.0 billion, respectively.
(g) Included on the Consolidated Balance Sheets in beneficial interests issued by consolidated VIEs. Also included $1.2 billion and $1.3 billion of outstanding
structured notes accounted for at fair value at December 31, 2012 and 2011, respectively. Excluded short-term commercial paper and other short-term
beneficial interests of $28.2 billion and $26.2 billion at December 31, 2012 and 2011, respectively.
(h) At December 31, 2012, long-term debt in the aggregate of $22.1 billion was redeemable at the option of JPMorgan Chase, in whole or in part, prior to
maturity, based on the terms specified in the respective notes.
(i) The aggregate carrying values of debt that matures in each of the five years subsequent to 2012 is $31.3 billion in 2013, $35.8 billion in 2014, $32.0
billion in 2015, $28.0 billion in 2016 and $33.6 billion in 2017.