Commitments, Pledged Assets and Collateral

12 Months Ended

Dec. 31, 2018

Commitments and Contingencies Disclosure [Abstract]

Commitments, Pledged Assets and Collateral

Commitments, pledged assets and

collateral

Lease commitments

At December 31, 2018, JPMorgan Chase and its subsidiaries were obligated under a number of noncancelable operating leases for premises and equipment used primarily for banking purposes. Certain leases contain renewal options or escalation clauses providing for increased rental payments based on maintenance, utility and tax increases, or they require the Firm to perform restoration work on leased premises. No lease agreement imposes restrictions on the Firm’s ability to pay dividends, engage in debt or equity financing transactions or enter into further lease agreements.

The following table presents required future minimum rental payments under operating leases with noncancelable lease terms that expire after December 31, 2018.

Year ended December 31, (in millions)
2019	1,561
2020	1,520
2021	1,320
2022	1,138
2023	973
After 2023	4,480
Total minimum payments required	10,992
Less: Sublease rentals under noncancelable subleases	(825		)
Net minimum payments required	$	10,167

Total rental expense was as follows.

Year ended December 31, (in millions)
	2018			2017			2016
Gross rental expense	$	1,881		$	1,853		$	1,860
Sublease rental income	(239		)	(251		)	(241		)
Net rental expense	$	1,642		$	1,602		$	1,619

Pledged assets

The Firm may pledge financial assets that it owns to maintain potential borrowing capacity at discount windows with Federal Reserve banks, various other central banks and FHLBs. Additionally, pledged assets are used for other purposes, including to collateralize repurchase and other securities financing agreements, to cover short sales and to collateralize derivative contracts and deposits. Certain of these pledged assets may be sold or repledged or otherwise used by the secured parties and are parenthetically identified on the Consolidated balance sheets as assets pledged.

The following table presents the Firm’s pledged assets.

December 31, (in billions)	2018		2017
Assets that may be sold or repledged or otherwise used by secured parties	$	104.0	$	135.8
Assets that may not be sold or repledged or otherwise used by secured parties	83.7		68.1
Assets pledged at Federal Reserve banks and FHLBs	475.3		493.7
Total assets pledged	$	663.0	$	697.6

Total assets pledged do not include assets of consolidated VIEs; these assets are used to settle the liabilities of those entities. Refer to Note 14 for additional information on assets and liabilities of consolidated VIEs. For additional information on the Firm’s securities financing activities, refer to Note 11. For additional information on the Firm’s long-term debt, refer to Note 19. The significant components of the Firm’s pledged assets were as follows.

December 31, (in billions)	2018		2017
Investment securities	$	59.5	$	86.2
Loans	440.1		437.7
Trading assets and other	163.4		173.7
Total assets pledged	$	663.0	$	697.6

Collateral

The Firm accepts financial assets as collateral that it is permitted to sell or repledge, deliver or otherwise use. This collateral is generally obtained under resale and other securities financing agreements, customer margin loans and derivative contracts. Collateral is generally used under repurchase and other securities financing agreements, to cover short sales and to collateralize derivative contracts and deposits.

The following table presents the fair value of collateral accepted.

December 31, (in billions)	2018		2017
Collateral permitted to be sold or repledged, delivered, or otherwise used	$	1,245.3	$	968.8
Collateral sold, repledged, delivered or otherwise used	998.3		771.0

Certain prior period amounts for both collateral and pledged assets (including the corresponding pledged assets parenthetical disclosure for trading assets and other assets on the Consolidated balance sheets) have been revised to conform with the current period presentation.