JP Morgan Chase 2015 Annual Report Download - page 212

Notes to consolidated financial statements
202 JPMorgan Chase & Co./2015 Annual Report
The following table presents by fair value hierarchy classification the carrying values and estimated fair values at
December 31, 2015 and 2014, of financial assets and liabilities, excluding financial instruments which are carried at fair value
on a recurring basis. For additional information regarding the financial instruments within the scope of this disclosure, and the
methods and significant assumptions used to estimate their fair value, see pages 185–188 of this Note.
December 31, 2015 December 31, 2014
Estimated fair value hierarchy Estimated fair value hierarchy
(in billions)
Carrying
value Level 1 Level 2 Level 3
Total
estimated
fair value
Carrying
value Level 1 Level 2 Level 3
Total
estimated
fair value
Financial assets
Cash and due from banks $ 20.5 $ 20.5 $ — $ — $ 20.5 $ 27.8 $ 27.8 $ — $ — $ 27.8
Deposits with banks 340.0 335.9 4.1 — 340.0 484.5 480.4 4.1 — 484.5
Accrued interest and accounts
receivable 46.6 — 46.4 0.2 46.6 70.1 — 70.0 0.1 70.1
Federal funds sold and
securities purchased under
resale agreements 189.5 — 189.5 — 189.5 187.2 — 187.2 — 187.2
Securities borrowed 98.3 — 98.3 — 98.3 109.4 — 109.4 — 109.4
Securities, held-to-maturity(a) 49.1 — 50.6 — 50.6 49.3 — 51.2 — 51.2
Loans, net of allowance for
loan losses(b) 820.8 — 25.4 802.7 828.1 740.5 — 21.8 723.1 744.9
Other 66.0 0.1 56.3 14.3 70.7 64.7 — 55.7 13.3 69.0
Financial liabilities
Deposits $ 1,267.2 $ — $ 1,266.1 $ 1.2 $ 1,267.3 $ 1,354.6 $ — $ 1,353.6 $ 1.2 $ 1,354.8
Federal funds purchased and
securities loaned or sold
under repurchase agreements 149.2 — 149.2 — 149.2 189.1 — 189.1 — 189.1
Commercial paper 15.6 — 15.6 — 15.6 66.3 — 66.3 — 66.3
Other borrowed funds 11.2 — 11.2 — 11.2 15.5 15.5 — 15.5
Accounts payable and other
liabilities(c) 144.6 — 141.7 2.8 144.5 172.6 — 169.6 2.9 172.5
Beneficial interests issued by
consolidated VIEs(d) 41.1 — 40.2 0.9 41.1 50.2 — 48.2 2.0 50.2
Long-term debt and junior
subordinated deferrable
interest debentures(e) 255.6 — 257.4 4.3 261.7 246.2 — 251.2 3.8 255.0
(a) Carrying value reflects unamortized discount or premium.
(b) Fair value is typically estimated using a discounted cash flow model that incorporates the characteristics of the underlying loans (including principal,
contractual interest rate and contractual fees) and other key inputs, including expected lifetime credit losses, interest rates, prepayment rates, and
primary origination or secondary market spreads. For certain loans, the fair value is measured based on the value of the underlying collateral. The
difference between the estimated fair value and carrying value of a financial asset or liability is the result of the different methodologies used to
determine fair value as compared with carrying value. For example, credit losses are estimated for a financial asset’s remaining life in a fair value
calculation but are estimated for a loss emergence period in the allowance for loan loss calculation; future loan income (interest and fees) is
incorporated in a fair value calculation but is generally not considered in the allowance for loan losses. For a further discussion of the Firm’s
methodologies for estimating the fair value of loans and lending-related commitments, see Valuation hierarchy on pages 185–188.
(c) Certain prior period amounts have been revised to conform with the current presentation.
(d) Carrying value reflects unamortized issuance costs.
(e) Carrying value reflects unamortized premiums and discounts, issuance costs, and other valuation adjustments.