Accumulated Other Comprehensive Income/(Loss)

6 Months Ended

Jun. 30, 2019

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 investment securities, foreign currency translation adjustments (including the impact of related derivatives), fair value changes of excluded components on fair value hedges, cash flow hedging activities, net loss and prior service costs/(credit) related to the Firm’s defined benefit pension and OPEB plans, and on fair value option-elected liabilities arising from changes in the Firm’s own credit risk (DVA).

As of or for the three months ended June 30, 2019 (in millions)	Unrealized gains/(losses) on investment securities				Translation adjustments, net of hedges				Fair value hedges			Cash flow hedges				Defined benefit pension and OPEB plans				DVA on fair value option elected liabilities				Accumulated other comprehensive income/(loss)
Balance at April 1, 2019		$	2,616			$	(751	)	$	(159	)		$	29			$	(2,272	)		$	(21	)		$	(558	)
Net change		1,093				99			86				97				41				256				1,672
Balance at June 30, 2019		$	3,709			$	(652	)	$	(73	)		$	126			$	(2,231	)		$	235			$	1,114
As of or for the three months ended June 30, 2018 (in millions)	Unrealized gains/(losses) on investment securities				Translation adjustments, net of hedges				Fair value hedges			Cash flow hedges				Defined benefit pension and OPEB plans				DVA on fair value option elected liabilities				Accumulated other comprehensive income/(loss)
Balance at April 1, 2018		$	1,826			$	(720	)	(94		)		$	19			$	(1,914	)		$	(180	)		$	(1,063	)
Net change		(227		)		88			(68		)		(166		)		38				260				(75		)
Balance at June 30, 2018		$	1,599			$	(632	)	$	(162	)		$	(147	)		$	(1,876	)		$	80			$	(1,138	)
As of or for the six months ended June 30, 2019 (in millions)	Unrealized gains/(losses) on investment securities				Translation adjustments, net of hedges				Fair value hedges			Cash flow hedges				Defined benefit pension and OPEB plans				DVA on fair value option elected liabilities				Accumulated other comprehensive income/(loss)
Balance at January 1, 2019		$	1,202			$	(727	)	$	(161	)		$	(109	)		$	(2,308	)		$	596			$	(1,507	)
Net change		2,507				75			88				235				77				(361		)		2,621
Balance at June 30, 2019		$	3,709			$	(652	)	$	(73	)		$	126			$	(2,231	)		$	235			$	1,114
As of or for the six months ended June 30, 2018 (in millions)	Unrealized gains/(losses) on investment securities				Translation adjustments, net of hedges				Fair value hedges			Cash flow hedges				Defined benefit pension and OPEB plans				DVA on fair value option elected liabilities				Accumulated other comprehensive income/(loss)
Balance at January 1, 2018		$	2,164			$	(470	)	$	—			$	76			$	(1,521	)		$	(368	)		$	(119	)
Cumulative effect of changes in accounting principles(a)		896				(277		)	$	(54	)		16				(414		)		(79		)		88
Net change		(1,461		)		115			(108		)		(239		)		59				527				(1,107		)
Balance at June 30, 2018		$	1,599			$	(632	)	$	(162	)		$	(147	)		$	(1,876	)		$	80			$	(1,138	)

(a) Represents the adjustment to AOCI as a result of the accounting standards adopted in the first quarter of 2018, refer to Note 1 of JPMorgan Chase’s 2018 Form 10-K.

The following table presents the pre-tax and after-tax changes in the components of OCI.

	2019									2018
Three months ended June 30, (in millions)	Pre-tax			Tax effect			After-tax			Pre-tax			Tax effect			After-tax
Unrealized gains/(losses) on investment securities:
Net unrealized gains/(losses) arising during the period	$	1,491		$	(365	)	$	1,126		$	(376	)	$	88		$	(288	)
Reclassification adjustment for realized (gains)/losses included in net income(a)	(44		)	11			(33		)	80			(19		)	61
Net change	1,447			(354		)	1,093			(296		)	69			(227		)
Translation adjustments(b):
Translation	123			72			195			(1,056		)	208			(848		)
Hedges	(128		)	32			(96		)	1,227			(291		)	936
Net change	(5		)	104			99			171			(83		)	88
Fair value hedges, net change(c):	112			(26		)	86			(89		)	21			(68		)
Cash flow hedges:
Net unrealized gains/(losses) arising during the period	101			(24		)	77			(199		)	47			(152		)
Reclassification adjustment for realized (gains)/losses included in net income(d)	26			(6		)	20			(19		)	5			(14		)
Net change	127			(30		)	97			(218		)	52			(166		)
Defined benefit pension and OPEB plans:
Net gain/(loss) arising during the period	(1		)	—			(1		)	2			—			2
Reclassification adjustments included in net income(e):
Amortization of net loss	41			(7		)	34			26			(6		)	20
Amortization of prior service cost/(credit)	1			(1		)	—			(6		)	2			(4		)
Foreign exchange and other	9			(1		)	8			31			(11		)	20
Net change	50			(9		)	41			53			(15		)	38
DVA on fair value option elected liabilities, net change:	338			(82		)	256			340			(80		)	260
Total other comprehensive income/(loss)	$	2,069		$	(397	)	$	1,672		$	(39	)	$	(36	)	$	(75	)
	2019									2018
Six months ended June 30, (in millions)	Pre-tax			Tax effect			After-tax			Pre-tax			Tax effect			After-tax
Unrealized gains/(losses) on investment securities:
Net unrealized gains/(losses) arising during the period	$	3,366		$	(816	)	$	2,550		$	(2,234	)	$	525		$	(1,709	)
Reclassification adjustment for realized (gains)/losses included in net income(a)	(57		)	14			(43		)	325			(77		)	248
Net change	3,309			(802		)	2,507			(1,909		)	448			(1,461		)
Translation adjustments(b):
Translation	164			36			200			(667		)	143			(524		)
Hedges	(166		)	41			(125		)	838			(199		)	639
Net change	(2		)	77			75			171			(56		)	115
Fair value hedges, net change(c):	115			(27		)	88			(141		)	33			(108		)
Cash flow hedges:
Net unrealized gains/(losses) arising during the period	242			(57		)	185			(243		)	58			(185		)
Reclassification adjustment for realized (gains)/losses included in net income(d)	65			(15		)	50			(71		)	17			(54		)
Net change	307			(72		)	235			(314		)	75			(239		)
Defined benefit pension and OPEB plans:
Net gain/(loss) arising during the period	2			(2		)	—			25			(6		)	19
Reclassification adjustments included in net income(e):
Amortization of net loss	83			(16		)	67			52			(12		)	40
Amortization of prior service cost/(credit)	2			(1		)	1			(12		)	3			(9		)
Foreign exchange and other	1			8			9			12			(3		)	9
Net change	88			(11		)	77			77			(18		)	59
DVA on fair value option elected liabilities, net change:	$	(469	)	$	108		$	(361	)	$	690		$	(163	)	$	527
Total other comprehensive income/(loss)	$	3,348		$	(727	)	$	2,621		$	(1,426	)	$	319		$	(1,107	)

(a) The pre-tax amount is reported in Investment securities gains/(losses) in the Consolidated statements of income.

(b) Reclassifications of pre-tax realized gains/(losses) on translation adjustments and related hedges are reported in other income/expense in the Consolidated statements of income. During the three and six months ended June 30, 2019, the Firm reclassified net pre-tax gains of $6 million to other income and $1 million to other expense, respectively. These amounts, which related to the liquidation of certain legal entities, are comprised of $5 million related to net investment hedge gains and $2 million related to cumulative translation adjustments. During the three and six months ended June 30, 2018, the Firm reclassified a net pre-tax loss of $174 million to other expense related to the liquidation of a legal entity, comprised of $23 million related to net investment hedge losses and $151 million related to cumulative translation adjustments.

(c) Represents changes in fair value of cross-currency swaps attributable to changes in cross-currency basis spreads, which are excluded from the assessment of hedge effectiveness and recorded in other comprehensive income. The initial cost of cross-currency basis spreads is recognized in earnings as part of the accrual of interest on the cross currency swap.

(d) The pre-tax amounts are predominantly recorded in noninterest revenue, net interest income and compensation expense in the Consolidated statements of income.

(e)

The pre-tax amount is reported in other expense in the Consolidated statements of income.