JP Morgan Chase 2015 Annual Report Download - page 294

Notes to consolidated financial statements
284 JPMorgan Chase & Co./2015 Annual Report
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, 2012 $ 6,868 $ (95) $ 120 $ (2,791) $ 4,102
Net change (4,070) (41) (259) 1,467 (2,903)
Balance at December 31, 2013 $ 2,798 $ (136) $ (139) $ (1,324) $ 1,199
Net change 1,975 (11) 44 (1,018) 990
Balance at December 31, 2014 $ 4,773 $ (147) $ (95) $ (2,342) $ 2,189
Net change (2,144) (15) 51 111 (1,997)
Balance at December 31, 2015 $ 2,629 $ (162) $ (44) $ (2,231) $ 192
(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
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.
The following table presents the before- and after-tax changes in the components of other comprehensive income/(loss).
2015 2014 2013
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 $(3,315) $ 1,297 $(2,018) $ 3,193 $(1,170) $ 2,023 $(5,987) $ 2,323 $(3,664)
Reclassification adjustment for realized (gains)/
losses included in net income(a) (202) 76 (126) (77) 29 (48) (667) 261 (406)
Net change (3,517) 1,373 (2,144) 3,116 (1,141) 1,975 (6,654) 2,584 (4,070)
Translation adjustments:
Translation(b) (1,876) 682 (1,194) (1,638) 588 (1,050) (807) 295 (512)
Hedges(b) 1,885 (706) 1,179 1,698 (659) 1,039 773 (302) 471
Net change 9 (24) (15) 60 (71) (11) (34) (7) (41)
Cash flow hedges:
Net unrealized gains/(losses) arising during the
period (97) 35 (62) 98 (39) 59 (525) 206 (319)
Reclassification adjustment for realized (gains)/
losses included in net income(c)(e) 180 (67) 113 (24) 9 (15) 101 (41) 60
Net change 83 (32) 51 74 (30) 44 (424) 165 (259)
Defined benefit pension and OPEB plans:
Prior service credits arising during the period ———(53) 21 (32) — — —
Net gains/(losses) arising during the period 29 (47) (18) (1,697) 688 (1,009) 2,055 (750) 1,305
Reclassification adjustments included in
net income(d):
Amortization of net loss 282 (106) 176 72 (29) 43 321 (124) 197
Prior service costs/(credits) (36) 14 (22) (44) 17 (27) (43) 17 (26)
Foreign exchange and other 33 (58) (25) 39 (32) 7 (14) 5 (9)
Net change 308 (197) 111 (1,683) 665 (1,018) 2,319 (852) 1,467
Total other comprehensive income/(loss) $(3,117) $ 1,120 $(1,997) $ 1,567 $ (577) $ 990 $(4,793) $ 1,890 $(2,903)
(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 amounts 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.
(e) In 2015, the Firm reclassified approximately $150 million of net losses from AOCI to other income because the Firm determined that it is probable that
the forecasted interest payment cash flows will not occur. For additional information, see Note 6.