JP Morgan Chase 2012 Annual Report Download - page 320

Notes to consolidated financial statements
330 JPMorgan Chase & Co./2012 Annual Report
Note 34 – Parent company
Parent company – Statements of income
Year ended December 31,
(in millions) 2012 2011 2010
Income
Dividends from subsidiaries and
affiliates:
Bank and bank holding company $ 4,828 $ 10,852 $ 16,554
Nonbank(a) 1,972 2,651 932
Interest income from subsidiaries 1,041 1,099 985
Other interest income 293 384 294
Other income from subsidiaries,
primarily fees:
Bank and bank holding company 939 809 680
Nonbank 1,207 92 312
Other income/(loss) 579 (85) 157
Total income 10,859 15,802 19,914
Expense
Interest expense to subsidiaries and
affiliates(a) 836 1,121 1,263
Other interest expense 4,679 4,447 3,782
Other noninterest expense 2,399 649 540
Total expense 7,914 6,217 5,585
Income before income tax benefit
and undistributed net income of
subsidiaries 2,945 9,585 14,329
Income tax benefit 1,665 1,089 511
Equity in undistributed net income of
subsidiaries 16,674 8,302 2,530
Net income $ 21,284 $ 18,976 $ 17,370
Parent company – Balance sheets
December 31, (in millions) 2012 2011
Assets
Cash and due from banks $ 216 $ 132
Deposits with banking subsidiaries 75,521 91,622
Trading assets 8,128 18,485
Available-for-sale securities 3,541 3,657
Loans 2,101 1,880
Advances to, and receivables from,
subsidiaries:
Bank and bank holding company 39,773 39,888
Nonbank 86,904 83,138
Investments (at equity) in subsidiaries and
affiliates:
Bank and bank holding company 170,276 157,160
Nonbank(a) 45,305 42,231
Goodwill and other intangibles 1,018 1,027
Other assets 16,481 15,506
Total assets $ 449,264 $ 454,726
Liabilities and stockholders’ equity
Borrowings from, and payables to,
subsidiaries and affiliates(a) $ 16,744 $ 30,231
Other borrowed funds, primarily commercial
paper 62,010 59,891
Other liabilities 8,208 7,653
Long-term debt(b)(c) 158,233 173,378
Total liabilities(c) 245,195 271,153
Total stockholders’ equity 204,069 183,573
Total liabilities and stockholders’ equity $ 449,264 $ 454,726
Parent company – Statements of cash flows
Year ended December 31,
(in millions) 2012 2011 2010
Operating activities
Net income $ 21,284 $ 18,976 $ 17,370
Less: Net income of subsidiaries and
affiliates(a) 23,474 21,805 20,016
Parent company net loss (2,190) (2,829) (2,646)
Cash dividends from subsidiaries
and affiliates(a) 6,798 13,414 17,432
Other, net 2,401 889 1,685
Net cash provided by operating
activities 7,009 11,474 16,471
Investing activities
Net change in:
Deposits with banking subsidiaries 16,100 20,866 7,692
Available-for-sale securities:
Purchases (364) (1,109) (1,387)
Proceeds from sales and
maturities 621 886 745
Loans, net (350) 153 (90)
Advances to subsidiaries, net 5,951 (28,105) 8,051
Investments (at equity) in
subsidiaries and affiliates, net(a) 3,546 (1,530) (871)
Net cash provided by/(used in)
investing activities 25,504 (8,839) 14,140
Financing activities
Net change in borrowings from
subsidiaries and affiliates(a) (14,038) 2,827 (2,039)
Net change in other borrowed funds 3,736 16,268 (11,843)
Proceeds from the issuance of long-
term debt 28,172 33,566 21,610
Repayments of long-term debt (44,240) (41,747) (32,893)
Excess tax benefits related to stock-
based compensation 255 867 26
Redemption of preferred stock —— (352)
Proceeds from issuance of preferred
stock 1,234 — —
Treasury stock and warrants
repurchased (1,653) (8,863) (2,999)
Dividends paid (5,194) (3,895) (1,486)
All other financing activities, net (701) (1,622) (641)
Net cash used in financing
activities (32,429) (2,599) (30,617)
Net increase/(decrease) in cash and
due from banks 84 36 (6)
Cash and due from banks at the
beginning of the year, primarily
with bank subsidiaries 132 96 102
Cash and due from banks at the
end of the year, primarily with
bank subsidiaries $ 216 $ 132 $ 96
Cash interest paid $ 5,690 $ 5,800 $ 5,090
Cash income taxes paid, net 3,080 5,885 7,001
(a) Affiliates include trusts that issued guaranteed capital debt securities (“issuer trusts”). The Parent received dividends of $12 million, $13 million and $13 million from the issuer
trusts in 2012, 2011 and 2010, respectively. For further discussion on these issuer trusts, see Note 21 on pages 297–299 of this Annual Report.
(b) At December 31, 2012, long-term debt that contractually matures in 2013 through 2017 totaled $19.3 billion, $25.1 billion, $21.6 billion, $17.5 billion and $17.3 billion,
respectively.
(c) For information regarding the Firm’s guarantees of its subsidiaries’ obligations, see Note 21 and Note 29 on pages 297–299 and 308–315, respectively, of this Annual Report.