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Accumulated Other Comprehensive Income/(Loss) (Tables)
 9 Months Ended
Sep. 30, 2019
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]  
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
September 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 July 1, 2019
 
$
3,709

 
 
 
$
(652
)
 
 
$
(73
)
 
$
126

 
 
 
$
(2,231
)
 
 
$
235

 
 
$
1,114

 
 
Net change
 
479

 
 
 
(165
)
 
 
(1
)
 
195

 
 
 
46

 
 
132

 
 
686

 
 
Balance at September 30, 2019
 
$
4,188

 
 
 
$
(817
)
 
 
$
(74
)
 
$
321

 
 
 
$
(2,185
)
 
 
$
367

 
 
$
1,800

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
As of or for the three months ended
September 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 July 1, 2018
 
$
1,599

 
 
 
$
(632
)
 
 
(162
)
 
$
(147
)
 
 
 
$
(1,876
)
 
 
$
80

 
 
$
(1,138
)
 
 
Net change
 
(819
)
 
 
 
(31
)
 
 
34

 
(88
)
 
 
 
19

 
 
(402
)
 
 
(1,287
)
 
 
Balance at September 30, 2018
 
$
780

 
 
 
$
(663
)
 
 
$
(128
)
 
$
(235
)
 
 
 
$
(1,857
)
 
 
$
(322
)
 
 
$
(2,425
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
As of or for the nine months ended
September 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
 
2,986

 
 
 
(90
)
 
 
87

 
430

 
 
 
123

 
 
(229
)
 
 
3,307

 
 
Balance at September 30, 2019
 
$
4,188

 
 
 
$
(817
)
 
 
$
(74
)
 
$
321

 
 
 
$
(2,185
)
 
 
$
367

 
 
$
1,800

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
As of or for the nine months ended
September 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
 
(2,280
)
 
 
 
84

 
 
(74
)
 
(327
)
 
 
 
78

 
 
125

 
 
(2,394
)
 
 
Balance at September 30, 2018
 
$
780

 
 
 
$
(663
)
 
 
$
(128
)
 
$
(235
)
 
 
 
$
(1,857
)
 
 
$
(322
)
 
 
$
(2,425
)
 

(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.


Changes of the components of accumulated other comprehensive income (loss)
The following table presents the pre-tax and after-tax changes in the components of OCI.
 
2019
 
2018
Three months ended September 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
$
708

 
$
(169
)
 
$
539

 
$
(1,117
)
 
$
262

 
$
(855
)
Reclassification adjustment for realized (gains)/losses included in net income(a)
(78
)
 
18

 
(60
)
 
46

 
(10
)
 
36

Net change
630

 
(151
)
 
479

 
(1,071
)
 
252

 
(819
)
Translation adjustments:
 
 
 
 
 
 
 
 
 
 
 
Translation
(861
)
 
40

 
(821
)
 
(314
)
 
45

 
(269
)
Hedges
866

 
(210
)
 
656

 
311

 
(73
)
 
238

Net change
5

 
(170
)
 
(165
)
 
(3
)
 
(28
)
 
(31
)
Fair value hedges, net change(b):
(1
)
 
—

 
(1
)
 
45

 
(11
)
 
34

Cash flow hedges:
 
 
 
 
 
 
 
 
 
 
 
Net unrealized gains/(losses) arising during the period
222

 
(55
)
 
167

 
(122
)
 
27

 
(95
)
Reclassification adjustment for realized (gains)/losses included in net income(c)
37

 
(9
)
 
28

 
9

 
(2
)
 
7

Net change
259

 
(64
)
 
195

 
(113
)
 
25

 
(88
)
Defined benefit pension and OPEB plans:
 
 
 
 
 
 
 
 
 
 
 
Net gain/(loss) arising during the period
—

 
—

 
—

 
—

 
—

 
—

Reclassification adjustments included in net income(d):
 
 
 
 
 
 
 
 
 
 
 
Amortization of net loss
42

 
(10
)
 
32

 
26

 
(6
)
 
20

Amortization of prior service cost/(credit)
—

 
—

 
—

 
(7
)
 
2

 
(5
)
Foreign exchange and other
18

 
(4
)
 
14

 
7

 
(3
)
 
4

Net change
60

 
(14
)
 
46

 
26

 
(7
)
 
19

DVA on fair value option elected liabilities, net change:
173

 
(41
)
 
132

 
(527
)
 
125

 
(402
)
Total other comprehensive income/(loss)
$
1,126

 
$
(440
)
 
$
686

 
$
(1,643
)
 
$
356

 
$
(1,287
)
 
 
 
 
 
 
 
 
 
 
 
 
 
2019
 
2018
Nine months ended September 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
$
4,074

 
$
(985
)
 
$
3,089

 
$
(3,351
)
 
$
787

 
$
(2,564
)
Reclassification adjustment for realized (gains)/losses included in net income(a)
(135
)
 
32

 
(103
)
 
371

 
(87
)
 
284

Net change
3,939

 
(953
)
 
2,986

 
(2,980
)
 
700

 
(2,280
)
Translation adjustments(e):
 
 
 
 
 
 
 
 
 
 
 
Translation
(697
)
 
76

 
(621
)
 
(981
)
 
188

 
(793
)
Hedges
700

 
(169
)
 
531

 
1,149

 
(272
)
 
877

Net change
3

 
(93
)
 
(90
)
 
168

 
(84
)
 
84

Fair value hedges, net change(b):
114

 
(27
)
 
87

 
(96
)
 
22

 
(74
)
Cash flow hedges:
 
 
 
 
 
 
 
 
 
 
 
Net unrealized gains/(losses) arising during the period
464

 
(112
)
 
352

 
(365
)
 
85

 
(280
)
Reclassification adjustment for realized (gains)/losses included in net income(c)
102

 
(24
)
 
78

 
(62
)
 
15

 
(47
)
Net change
566

 
(136
)
 
430

 
(427
)
 
100

 
(327
)
Defined benefit pension and OPEB plans:
 
 
 
 
 
 
 
 
 
 
 
Net gain/(loss) arising during the period
2

 
(2
)
 
—

 
25

 
(6
)
 
19

Reclassification adjustments included in net income(d):
 
 
 
 
 
 
 
 
 
 
 
Amortization of net loss
125

 
(26
)
 
99

 
78

 
(18
)
 
60

Amortization of prior service cost/(credit)
2

 
(1
)
 
1

 
(19
)
 
5

 
(14
)
Settlement (gain)/loss

—

 
—

 
—

 
—

 
—

 
—

Foreign exchange and other
19

 
4

 
23

 
19

 
(6
)
 
13

Net change
148

 
(25
)
 
123

 
103

 
(25
)
 
78

DVA on fair value option elected liabilities, net change:
$
(296
)
 
$
67

 
$
(229
)
 
$
163

 
$
(38
)
 
$
125

Total other comprehensive income/(loss)
$
4,474

 
$
(1,167
)
 
$
3,307

 
$
(3,069
)
 
$
675

 
$
(2,394
)
(a)
The pre-tax amount is reported in Investment securities gains/(losses) in the Consolidated statements of income.
(b)
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.
(c)
The pre-tax amounts are predominantly recorded in noninterest revenue, net interest income and compensation expense in the Consolidated statements of income.
(d)
The pre-tax amount is reported in other expense in the Consolidated statements of income.
(e)
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 nine months ended September 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 nine months ended September 30, 2018, the Firm reclassified a net pre-tax loss of $174 million to other expense related to the liquidation of a legal entity, $23 million related to net investment hedge losses and $151 million related to cumulative translation adjustments.