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Long-term Debt
 12 Months Ended
Dec. 31, 2016
Debt Disclosure [Abstract]  
Long-term Debt
Long-term debt
JPMorgan Chase issues long-term debt denominated in various currencies, predominantly U.S. dollars, with both fixed and variable interest rates. Included in senior and subordinated debt below are various equity-linked or other indexed instruments, which the Firm has elected to measure at fair value. Changes in fair value are recorded in principal transactions revenue in the Consolidated statements of income. The following table is a summary of long-term debt carrying values (including unamortized premiums and discounts, issuance costs, valuation adjustments and fair value adjustments, where applicable) by remaining contractual maturity as of December 31, 2016.
By remaining maturity at
December 31,
(in millions, except rates)
 
2016
 
2015
 
Under 1 year

 
1-5 years

 
After 5 years

 
Total
 
Total
Parent company
 
 
 
 
 
 
 
 
 
 
Senior debt:
Fixed rate
$
12,109

 
$
57,938

 
$
58,920

 
$
128,967

 
$
117,758

 
Variable rate
11,870

 
15,497

 
7,399

 
34,766

 
44,178

 
Interest rates(a)
0.09-6.40%
 
0.17-7.25%
 
0.45-6.40%
 
0.09-7.25%
 
0.16-7.25%
Subordinated debt:
Fixed rate
$
2,096

 
$
152

 
$
14,563

 
$
16,811

 
$
16,250

 
Variable rate
864

 
372

 
9

 
1,245

 
1,047

 
Interest rates(a)
0.82-6.13%
 
1.93-8.53%
 
3.38-8.00%
 
0.82-8.53%
 
1.06-8.53%

 
Subtotal
$
26,939

 
$
73,959

 
$
80,891

 
$
181,789

 
$
179,233

Subsidiaries
 
 
 
 
 
 
 
 
 
 
Federal Home Loan Banks advances:
Fixed rate
$
5

 
$
31

 
$
143

 
$
179

 
$
191

 
Variable rate
11,340

 
57,000

 
11,000

 
79,340

 
71,390

 
Interest rates(a)
0.84-1.01%
 
0.83-1.21%
 
0.41-0.67%
 
0.41-1.21%
 
0.17-0.72%

Senior debt:
Fixed rate
$
339

 
$
3,100

 
$
4,890

 
$
8,329

 
$
5,550

 
Variable rate
4,520

 
11,860

 
2,999

 
19,379

 
20,588

 
Interest rates(a)
1.29-1.49%
 
0.00-7.50%
 
1.30-7.50%

 
0.00-7.50%
 
0.47-7.28%

Subordinated debt:
Fixed rate
$
3,562

 
$
—

 
$
322

 
$
3,884

 
$
6,580

 
Variable rate
—

 
—

 
—

 
—

 
1,150

 
Interest rates(a)
6.00
%
 
—
%
 
8.25%
 
6.00-8.25%
 
0.83-8.25%

 
Subtotal
$
19,766

 
$
71,991

 
$
19,354

 
$
111,111

 
$
105,449

Junior subordinated debt:
Fixed rate
$
—

 
$
—

 
$
706

 
$
706

 
$
717

 
Variable rate
—

 
—

 
1,639

 
1,639

 
3,252

 
Interest rates(a)
—
%
 
—
%
 
1.39-8.75%
 
1.39-8.75%
 
0.83-8.75%

 
Subtotal
$
—

 
$
—

 
$
2,345

 
$
2,345

 
$
3,969

Total long-term debt(b)(c)(d)
 
$
46,705

 
$
145,950

 
$
102,590

 
$
295,245

(f)(g) 
$
288,651

Long-term beneficial interests:
 
 
 
 
 
 
 
 
 
 
Fixed rate
$
5,164

 
$
12,766

 
$
748

 
$
18,678

 
$
14,199

 
Variable rate
6,438

 
6,281

 
1,962

 
14,681

 
16,358

 
Interest rates
0.74-5.23%
 
0.98-7.87%
 
0.39-5.94%
 
0.39-7.87%
 
0.00-15.94%
Total long-term beneficial interests(e)
 
$
11,602

 
$
19,047

 
$
2,710

 
$
33,359

 
$
30,557

(a)
The interest rates shown are the range of contractual rates in effect at December 31, 2016 and 2015, respectively, including non-U.S. dollar fixed- and variable-rate issuances, which excludes the effects of the associated derivative instruments used in hedge accounting relationships, if applicable. The use of these derivative instruments modifies the Firm’s exposure to the contractual interest rates disclosed in the table above. Including the effects of the hedge accounting derivatives, the range of modified rates in effect at December 31, 2016, for total long-term debt was (0.18)% to 8.88%, versus the contractual range of 0.00% to 8.75% presented in the table above. The interest rate ranges shown exclude structured notes accounted for at fair value.
(b)
Included long-term debt of $82.2 billion and $76.6 billion secured by assets totaling $205.6 billion and $171.6 billion at December 31, 2016 and 2015, respectively. The amount of long-term debt secured by assets does not include amounts related to hybrid instruments.
(c)
Included $37.7 billion and $33.1 billion of long-term debt accounted for at fair value at December 31, 2016 and 2015, respectively.
(d)
Included $7.5 billion and $5.5 billion of outstanding zero-coupon notes at December 31, 2016 and 2015, respectively. The aggregate principal amount of these notes at their respective maturities is $25.1 billion and $16.2 billion, respectively. The aggregate principal amount reflects the contractual principal payment at maturity, which may exceed the contractual principal payment at the Firm’s next call date, if applicable.
(e)
Included on the Consolidated balance sheets in beneficial interests issued by consolidated VIEs. Also included $120 million and $787 million accounted for at fair value at December 31, 2016 and 2015, respectively. Excluded short-term commercial paper and other short-term beneficial interests of $5.7 billion and $11.3 billion at December 31, 2016 and 2015, respectively.
(f)
At December 31, 2016, long-term debt in the aggregate of $81.8 billion was redeemable at the option of JPMorgan Chase, in whole or in part, prior to maturity, based on the terms specified in the respective instruments.
(g)
The aggregate carrying values of debt that matures in each of the five years subsequent to 2016 is $46.7 billion in 2017, $49.4 billion in 2018, $32.2 billion in 2019, $33.8 billion in 2020 and $30.6 billion in 2021.
The weighted-average contractual interest rates for total long-term debt excluding structured notes accounted for at fair value were 2.49% and 2.34% as of December 31, 2016 and 2015, respectively. In order to modify exposure to interest rate and currency exchange rate movements, JPMorgan Chase utilizes derivative instruments, primarily interest rate and cross-currency interest rate swaps, in conjunction with some of its debt issues. The use of these instruments modifies the Firm’s interest expense on the associated debt. The modified weighted-average interest rates for total long-term debt, including the effects of related derivative instruments, were 2.01% and 1.64% as of December 31, 2016 and 2015, respectively.
JPMorgan Chase & Co. has guaranteed certain long-term debt of its subsidiaries, including both long-term debt and structured notes. These guarantees rank on parity with the Firm’s other unsecured and unsubordinated indebtedness. The amount of such guaranteed long-term debt and structured notes was $3.9 billion and $152 million at December 31, 2016 and 2015, respectively.
The Firm’s unsecured debt does not contain requirements that would call for an acceleration of payments, maturities or changes in the structure of the existing debt, provide any limitations on future borrowings or require additional collateral, based on unfavorable changes in the Firm’s credit ratings, financial ratios, earnings or stock price.
Junior subordinated deferrable interest debentures held by trusts that issued guaranteed capital debt securities
At December 31, 2016, the Firm had outstanding eight wholly-owned Delaware statutory business trusts (“issuer trusts”) that had issued trust preferred securities.
The junior subordinated deferrable interest debentures issued by the Firm to the issuer trusts, totaling $2.3 billion and $4.0 billion at December 31, 2016 and 2015, respectively, were reflected on the Firm’s Consolidated balance sheets in long-term debt, and in the table on the preceding page under the caption “Junior subordinated debt.” The Firm also records the common capital securities issued by the issuer trusts in other assets in its Consolidated balance sheets at December 31, 2016 and 2015. Beginning in 2014, the debentures issued to the issuer trusts by the Firm, less the common capital securities of the issuer trusts, began being phased out from inclusion as Tier 1 capital under Basel III and they were fully phased out as of December 31, 2016. As of December 31, 2015, $992 million of these debentures qualified as Tier 1 capital. As of December 31, 2016 and 2015, $1.4 billion and $3.0 billion, respectively, qualified as Tier 2 capital.
The Firm redeemed $1.6 billion and $1.5 billion of trust preferred securities in the years ended December 31, 2016 and 2015, respectively.