Accumulated Other Comprehensive Income/(Loss)

9 Months Ended

Sep. 30, 2011

Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]

ACCUMULATED OTHER COMPREHENSIVE INCOME/(LOSS)

ACCUMULATED OTHER COMPREHENSIVE INCOME/(LOSS)

AOCI includes the after-tax change in unrealized gains and losses on AFS 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.

Nine months ended September 30, 2011	Unrealized gains/(losses) on AFS securities(b)					Translation adjustments, net of hedges					Cash flow hedges					Net loss and prior service costs/(credit) of defined benefit pension and OPEB plans					Accumulated other comprehensive income/(loss)
(in millions)
Balance at January 1, 2011		$	2,498		(c)		$	253				$	206				$	(1,956	)			$	1,001
Net change		1,239			(d)		(210		)	(e)		(152		)	(f)		86			(g)		963
Balance at September 30, 2011		$	3,737		(c)		$	43				$	54				$	(1,870	)			$	1,964
Nine months ended September 30, 2010	Unrealized gains/(losses) on AFS securities(b)					Translation adjustments, net of hedges					Cash flow hedges					Net loss and prior service costs/(credit) of defined benefit pension and OPEB plans					Accumulated other comprehensive income/(loss)
(in millions)
Balance at January 1, 2010		$	2,032		(c)		$	(16	)			$	181				$	(2,288	)			$	(91	)
Cumulative effect of change in accounting principle(a)		(144		)			—					—					—					(144		)
Net change		2,839			(d)		196			(e)		142			(f)		154			(g)		3,331
Balance at September 30, 2010		$	4,727		(c)		$	180				$	323				$	(2,134	)			$	3,096

(a) Reflects the effect of adoption of accounting guidance related to the consolidation of VIEs, and to embedded credit derivatives in beneficial interests in securitized financial assets. AOCI decreased by $129 million due to the adoption of the accounting guidance related to VIEs, as a result of the reversal of the fair value adjustments taken on retained AFS securities that were eliminated in consolidation; for further discussion see Note 16 on pages 244–259 of JPMorgan Chase’s 2010Annual Report. AOCI decreased by $15 million due to the adoption of the new guidance related to credit derivatives embedded in certain of the Firm’s AFS securities; for further discussion see Note 6 on pages 191-199 of JPMorgan Chase ’s 2010Annual Report.

(b) Represents the after-tax difference between the fair value and amortized cost of securities accounted for as AFS.

(c) At September 30, 2011, January 1, 2011, September 30, 2010 and January 1, 2010, included after-tax unrealized losses not related to credit on debt securities for which credit losses have been recognized in income of $(57) million, $(81) million$(97) million and $(226) million, respectively.

(d) The net change for the nine months ended September 30, 2011, was due primarily to increased market value on agency mortgage-backed securities (“MBS”)and municipal securities, partially offset by the widening of spreads on non-U.S. corporate debt and realization of gains due to portfolio repositioning. The net change for the nine months ended September 30, 2010, was due primarily to the narrowing of spreads on commercial and non-agency MBS as well as on collateralized loan obligations; also reflects increased market value on pass through MBS.

(e) The net change for the nine months ended September 30, 2011, and 2010, included after-tax gains/(losses) on foreign currency translation from operations for which the functional currency is other than the U.S. dollar of $(258) million and $187 million, respectively, partially offset by after-tax gains/(losses) on hedges of $48 million and $9 million, respectively. The Firm may not hedge its entire exposure to foreign currency translation on net investments in foreign operations.

(f) The net change for the nine months ended September 30, 2011, included $145 million of after-tax gains/(losses) recognized in income, and $(7) million of after-tax gains/(losses), representing the net change in derivative fair value that was reported in comprehensive income. The net change for the nine months ended Sept 30, 2010, included $53 million of after-tax gains recognized in income and $195 million of after-tax gains, representing the net change in derivative fair value that was reported in comprehensive income.

(g) The net changes for the nine month periods ended September 30, 2011 and 2010, were due to after-tax adjustments based on the final year-end actuarial valuations for the U.S. and non-U.S. defined benefit pension and OPEB plans (for 2010 and 2009, respectively); and the amortization of net loss and prior service credit into net periodic benefit cost.