Pension and Other Postretirement Employee Benefit Plans

6 Months Ended

Jun. 30, 2011

General Discussion of Pension and Other Postretirement Benefits [Abstract]

PENSION AND OTHER POSTRETIREMENT EMPLOYEE BENEFIT PLANS

PENSION AND OTHER POSTRETIREMENT EMPLOYEE BENEFIT PLANS

For a discussion of JPMorgan Chase’s pension and other postretirement employee benefit (“OPEB”) plans, see Note 9 on pages 201–210 of JPMorgan Chase’s 2010Annual Report.

The following table presents the components of net periodic benefit cost reported in the Consolidated Statements of Income for the Firm’s U.S. and non-U.S. defined benefit pension, defined contribution and OPEB plans.

	Pension plans
	U.S.						Non-U.S.						OPEB plans
Three months ended June 30, (in millions)	2011			2010			2011			2010			2011			2010
Components of net periodic benefit cost
Benefits earned during the period	$	62		$	58		$	9		$	6		$	—		$	1
Interest cost on benefit obligations	113			117			35			77			13			13
Expected return on plan assets	(197		)	(185		)	(36		)	(75		)	(22		)	(24		)
Amortization:
Net loss	41			56			12			13			—			—
Prior service cost/(credit)	(11		)	(11		)	(1		)	—			(2		)	(4		)
Net periodic defined benefit cost	8			35			19			21			(11		)	(14		)
Other defined benefit pension plans(a)	4			3			5			1			NA			NA
Total defined benefit plans	12			38			24			22			(11		)	(14		)
Total defined contribution plans	89			84			65			67			NA			NA
Total pension and OPEB cost included in compensation expense	$	101		$	122		$	89		$	89		$	(11	)	$	(14	)

	Pension plans
	U.S.						Non-U.S.						OPEB plans
Six months ended June 30, (in millions)	2011			2010			2011			2010			2011			2010
Components of net periodic benefit cost
Benefits earned during the period	$	124		$	116		$	18		$	13		$	—		$	1
Interest cost on benefit obligations	226			234			68			63			26			28
Expected return on plan assets	(395		)	(371		)	(72		)	(62		)	(44		)	(48		)
Amortization:
Net loss	82			112			24			27			—			—
Prior service cost/(credit)	(21		)	(22		)	(1		)	—			(4		)	(7		)
Net periodic defined benefit cost	16			69			37			41			(22		)	(26		)
Other defined benefit pension plans(a)	11			7			9			5			NA			NA
Total defined benefit plans	27			76			46			46			(22		)	(26		)
Total defined contribution plans	167			147			143			132			NA			NA
Total pension and OPEB cost included in compensation expense	$	194		$	223		$	189		$	178		$	(22	)	$	(26	)

(a) Includes various defined benefit pension plans which are individually immaterial.

The fair values of plan assets for the U.S. defined benefit pension and OPEB plans and for the material non-U.S. defined benefit pension plans were $12.5 billion and $2.9 billion, respectively, as of June 30, 2011, and $12.2 billion and $2.6 billion, respectively, as of December 31, 2010. See Note 20 on page 166 of this Form 10-Q for further information on unrecognized amounts (i.e., net loss and prior service costs/(credit)) reflected in AOCI for the six-month periods ended June 30, 2011 and 2010.

The amount of potential 2011 contributions to the U.S. qualified defined benefit pension plans, if any, is not determinable at this time. For the full year 2011, the cost of funding benefits under the Firm’s U.S. non-qualified defined benefit pension plans is expected to total $42 million. The 2011 contributions to the non-U.S. defined benefit pension and OPEB plans are expected to be $166 million and $2 million, respectively.