JPMORGAN CHASE & CO | 2013 | FY | 3

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.
Year ended December 31,
Unrealized gains/(losses) on AFS securities(a)
 
Translation adjustments, net of hedges
 
Cash flow hedges
 
Defined benefit pension and OPEB plans
 
Accumulated other comprehensive income/(loss)
(in millions)
Balance at December 31, 2010
 
$
2,498

 
 
 
$
253

 
 
 
$
206

 
 
 
$
(1,956
)
 
 
 
$
1,001

 
Net change
 
1,067

(b) 
 
 
(279
)
 
 
 
(155
)
 
 
 
(690
)
 
 
 
(57
)
 
Balance at December 31, 2011
 
$
3,565

(c) 
 
 
$
(26
)
 
 
 
$
51

 
 
 
$
(2,646
)
 
 
 
$
944

 
Net change
 
3,303

(d) 
 
 
(69
)
 
 
 
69

 
 
 
(145
)
 
 
 
3,158

 
Balance at December 31, 2012
 
$
6,868

(c) 
 
 
$
(95
)
 
 
 
$
120

 
 
 
$
(2,791
)
 
 
 
$
4,102

 
Net change
 
(4,070
)
(e) 
 
 
(41
)
 
 
 
(259
)
 
 
 
1,467

 
 
 
(2,903
)
 
Balance at December 31, 2013
 
$
2,798

(c) 
 
 
$
(136
)
 
 
 
$
(139
)
 
 
 
$
(1,324
)
 
 
 
$
1,199

 
(a)
Represents the after-tax difference between the fair value and amortized cost of securities accounted for as AFS.
(b)
The net change for 2011 was due primarily to increased market value on U.S. government agency issued MBS and obligations of U.S. states and municipalities, partially offset by the widening of spreads on non-U.S. corporate debt and the realization of gains due to portfolio repositioning.
(c)
Included after-tax unrealized losses not related to credit on debt securities for which credit losses have been recognized in income of $(56) million at December 31, 2011. There were no such losses at December 31, 2012 and 2013.
(d)
The net change for 2012 was predominantly driven by increased market value on non-U.S. residential MBS, corporate debt securities and obligations of U.S. states and municipalities, partially offset by realized gains.
(e)
The net change for 2013 was primarily related to the decline in fair value of U.S. government agency issued MBS and obligations of U.S. states and municipalities due to market changes, as well as net realized gains.
The following table presents the before- and after-tax changes in the components of other comprehensive income/(loss).
 
2013
 
2012
 
2011
Year ended December 31, (in millions)
Pretax
 
Tax effect
 
After-tax
 
Pretax
 
Tax effect
 
After-tax
 
Pretax
 
Tax effect
 
After-tax
Unrealized gains/(losses) on AFS securities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net unrealized gains/(losses) arising during the period
$
(5,987
)
 
$
2,323

 
$
(3,664
)
 
$
7,521

 
$
(2,930
)
 
$
4,591

 
$
3,361

 
$
(1,322
)
 
$
2,039

Reclassification adjustment for realized (gains)/losses included in net income(a)
(667
)
 
261

 
(406
)
 
(2,110
)
 
822

 
(1,288
)
 
(1,593
)
 
621

 
(972
)
Net change
(6,654
)
 
2,584

 
(4,070
)
 
5,411

 
(2,108
)
 
3,303

 
1,768

 
(701
)
 
1,067

Translation adjustments:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Translation(b)
(807
)
 
295

 
(512
)
 
(26
)
 
8

 
(18
)
 
(672
)
 
255

 
(417
)
Hedges(b)
773

 
(302
)
 
471

 
(82
)
 
31

 
(51
)
 
226

 
(88
)
 
138

Net change
(34
)
 
(7
)
 
(41
)
 
(108
)
 
39

 
(69
)
 
(446
)
 
167

 
(279
)
Cash flow hedges:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net unrealized gains/(losses) arising during the period
(525
)
 
206

 
(319
)
 
141

 
(55
)
 
86

 
50

 
(19
)
 
31

Reclassification adjustment for realized (gains)/losses included in net income(c)
101

 
(41
)
 
60

 
(28
)
 
11

 
(17
)
 
(301
)
 
115

 
(186
)
Net change
(424
)
 
165

 
(259
)
 
113

 
(44
)
 
69

 
(251
)
 
96

 
(155
)
Defined benefit pension and OPEB plans:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Prior service credits arising during the period
—

 
—

 
—

 
6

 
(2
)
 
4

 
—

 
—

 
—

Net gains/(losses) arising during the period
2,055

 
(750
)
 
1,305

 
(537
)
 
228

 
(309
)
 
(1,290
)
 
502

 
(788
)
Reclassification adjustments included in net income(d):


 


 


 


 


 


 


 


 
—

Amortization of net loss
321

 
(124
)
 
197

 
324

 
(126
)
 
198

 
214

 
(83
)
 
131

Prior service costs/(credits)
(43
)
 
17

 
(26
)
 
(41
)
 
16

 
(25
)
 
(52
)
 
20

 
(32
)
Foreign exchange and other
(14
)
 
5

 
(9
)
 
(21
)
 
8

 
(13
)
 
(1
)
 
—

 
(1
)
Net change
2,319

 
(852
)
 
1,467

 
(269
)
 
124

 
(145
)
 
(1,129
)
 
439

 
(690
)
Total other comprehensive income/(loss)
$
(4,793
)
 
$
1,890

 
$
(2,903
)
 
$
5,147

 
$
(1,989
)
 
$
3,158

 
$
(58
)
 
$
1

 
$
(57
)
(a)
The pretax amount is reported in securities gains in the Consolidated Statements of Income.
(b)
Reclassifications of pretax realized gains/(losses) on translation adjustments and related hedges are reported in other income in the Consolidated Statements of Income. The amounts were not material for the year ended December 31, 2013.
(c)
The pretax amount is reported in the same line as the hedged items, which are predominantly recorded in net interest income in the Consolidated Statements of Income.
(d)
The pretax amount is reported in compensation expense in the Consolidated Statements of Income.

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