Pension and Other Postretirement Employee Benefit Plans

9 Months Ended

Sep. 30, 2011

General Discussion of Pension and Other Postretirement Benefits [Abstract]

PENSION AND OTHER POSTRETIREMENT EMPLOYEE BENEFIT PLANS

PENSION AND OTHER POSTRETIREMENT EMPLOYEE BENEFIT PLANS

For a discussion of JPMorgan Chase’s pension and other postretirement employee benefit (“OPEB”) plans, see Note 9 on pages 201–210 of JPMorgan Chase’s 2010Annual Report.

The following table presents the components of net periodic benefit cost reported in the Consolidated Statements of Income for the Firm’s U.S. and non-U.S. defined benefit pension, defined contribution and OPEB plans.

	Pension plans
	U.S.						Non-U.S.						OPEB plans
Three months ended September 30, (in millions)	2011			2010			2011			2010			2011			2010
Components of net periodic benefit cost
Benefits earned during the period	$	62		$	57		$	9		$	8		$	1		$	—
Interest cost on benefit obligations	113			117			33			33			13			14
Expected return on plan assets	(197		)	(186		)	(35		)	(33		)	(22		)	(25		)
Amortization:
Net loss	41			56			12			15			—			—
Prior service cost/(credit)	(11		)	(10		)	—			(1		)	(2		)	(3		)
Settlement loss	—			—			—			2			—			—
Net periodic defined benefit cost	8			34			19			24			(10		)	(14		)
Other defined benefit pension plans(a)	3			4			3			3			NA			NA
Total defined benefit plans	11			38			22			27			(10		)	(14		)
Total defined contribution plans	122			102			69			70			NA			NA
Total pension and OPEB cost included in compensation expense	$	133		$	140		$	91		$	97		$	(10	)	$	(14	)

	Pension plans
	U.S.						Non-U.S.						OPEB plans
Nine months ended September 30, (in millions)	2011			2010			2011			2010			2011			2010
Components of net periodic benefit cost
Benefits earned during the period	$	186		$	173		$	27		$	21		$	1		$	1
Interest cost on benefit obligations	339			351			101			96			39			42
Expected return on plan assets	(592		)	(557		)	(107		)	(95		)	(66		)	(73		)
Amortization:
Net loss	123			168			36			42			—			—
Prior service cost/(credit)	(32		)	(32		)	(1		)	(1		)	(6		)	(10		)
Settlement loss	—			—			—			2			—			—
Net periodic defined benefit cost	24			103			56			65			(32		)	(40		)
Other defined benefit pension plans(a)	14			11			12			8			NA			NA
Total defined benefit plans	38			114			68			73			(32		)	(40		)
Total defined contribution plans	289			249			212			202			NA			NA
Total pension and OPEB cost included in compensation expense	$	327		$	363		$	280		$	275		$	(32	)	$	(40	)

(a) Includes various defined benefit pension plans which are individually immaterial.

The fair values of plan assets for the U.S. defined benefit pension and OPEB plans and for the material non-U.S. defined benefit pension plans were $11.5 billion and $2.8 billion, respectively, as of September 30, 2011, and $12.2 billion and $2.6 billion, respectively, as of December 31, 2010. See Note 20 on page 175 of this Form 10-Q for further information on unrecognized amounts (i.e., net loss and prior service costs/(credit)) reflected in AOCI for the nine-month periods ended September 30, 2011 and 2010.

The amount of potential 2011 contributions to the U.S. qualified defined benefit pension plans, if any, is not determinable at this time. For 2011, the cost associated with funding benefits under the Firm’s U.S. non-qualified defined benefit pension plans is expected to total $42 million. The 2011 contributions to the non-U.S. defined benefit pension and OPEB plans are expected to be $166 million and $2 million, respectively.