JP Morgan Chase 2014 Annual Report Download - page 283

JPMorgan Chase & Co./2014 Annual Report 281
Note 25 – Accumulated other comprehensive income/(loss)
AOCI includes the after-tax change in unrealized gains and losses on investment securities, foreign currency translation
adjustments (including the impact of related derivatives), cash flow hedging activities, and net loss and prior service costs/
(credit) related to the Firm’s defined benefit pension and OPEB plans.
Year ended December 31, Unrealized gains/
(losses) on
investment
securities(a)
Translation
adjustments,
net of hedges Cash flow hedges Defined benefit pension and OPEB plans
Accumulated
other
comprehensive
income/(loss)
(in millions)
Balance at December 31, 2011 $ 3,565 (b) $ (26) $ 51 $ (2,646) $ 944
Net change 3,303 (69) 69 (145) 3,158
Balance at December 31, 2012 $ 6,868 (b) $ (95) $ 120 $ (2,791) $ 4,102
Net change (4,070) (41) (259) 1,467 (2,903)
Balance at December 31, 2013 $ 2,798 (b) $ (136) $ (139) $ (1,324) $ 1,199
Net change 1,975 (11) 44 (1,018) 990
Balance at December 31, 2014 $ 4,773 (b) $ (147) $ (95) $ (2,342) $ 2,189
(a) Represents the after-tax difference between the fair value and amortized cost of securities accounted for as AFS including, as of the date of transfer during
the first quarter of 2014, $9 million of net unrealized losses related to AFS securities that were transferred to HTM. Subsequent to transfer, includes any
net unamortized unrealized gains and losses related to the transferred securities.
(b) At December 31, 2011, included after-tax non-credit related unrealized losses of $56 million on debt securities for which credit losses have been
recognized in income. There were no such losses for the other periods presented.
The following table presents the before- and after-tax changes in the components of other comprehensive income/(loss).
2014 2013 2012
Year ended December 31, (in millions) Pretax Tax
effect After- tax Pretax Tax effect After- tax Pretax Tax effect After- tax
Unrealized gains/(losses) on investment
securities:
Net unrealized gains/(losses) arising during the
period $ 3,193 $ (1,170) $ 2,023 $(5,987) $ 2,323 $(3,664) $ 7,521 $(2,930) $ 4,591
Reclassification adjustment for realized (gains)/
losses included in net income(a) (77) 29 (48) (667) 261 (406) (2,110) 822 (1,288)
Net change 3,116 (1,141) 1,975 (6,654) 2,584 (4,070) 5,411 (2,108) 3,303
Translation adjustments:
Translation(b) (1,638) 588 (1,050) (807) 295 (512) (26) 8 (18)
Hedges(b) 1,698 (659) 1,039 773 (302) 471 (82) 31 (51)
Net change 60 (71) (11) (34) (7) (41) (108) 39 (69)
Cash flow hedges:
Net unrealized gains/(losses) arising during the
period 98 (39) 59 (525) 206 (319) 141 (55) 86
Reclassification adjustment for realized (gains)/
losses included in net income(c) (24) 9 (15) 101 (41) 60 (28) 11 (17)
Net change 74 (30) 44 (424) 165 (259) 113 (44) 69
Defined benefit pension and OPEB plans:
Prior service credits arising during the period (53) 21 (32) — — — 6 (2) 4
Net gains/(losses) arising during the period (1,697) 688 (1,009) 2,055 (750) 1,305 (537) 228 (309)
Reclassification adjustments included in
net income(d):
Amortization of net loss 72 (29) 43 321 (124) 197 324 (126) 198
Prior service costs/(credits) (44) 17 (27) (43) 17 (26) (41) 16 (25)
Foreign exchange and other 39 (32) 7 (14) 5 (9) (21) 8 (13)
Net change (1,683) 665 (1,018) 2,319 (852) 1,467 (269) 124 (145)
Total other comprehensive income/(loss) $ 1,567 $ (577) $ 990 $(4,793) $ 1,890 $(2,903) $ 5,147 $(1,989) $ 3,158
(a) The pretax amount is reported in securities gains in the Consolidated statements of income.
(b) Reclassifications of pretax realized gains/(losses) on translation adjustments and related hedges are reported in other income/expense in the Consolidated
statements of income. The amounts were not material for the periods presented.
(c) The pretax amount is reported in the same line as the hedged items, which are predominantly recorded in net interest income in the Consolidated
statements of income.
(d) The pretax amount is reported in compensation expense in the Consolidated statements of income.