Management’s discussion and analysis EXPLANATION AND RECONCILIATION OF THE FIRM’S USE OF NON-GAAP FINANCIAL MEASURES Non-GAAP financial measures Management also uses certain non-GAAP financial measures at the Firm and business-segment level, because these other non-GAAP financial measures provide information to investors about the underlying operational performance and trends of the Firm or of the particular business segment, as the case may be, and, therefore, facilitate a comparison of the Firm or the business segment with the performance of its relevant competitors. Refer to Business Segment Results on pages 65–84 for additional information on these non-GAAP measures. Non-GAAP financial measures used by the Firm may not be comparable to similarly named non-GAAP financial measures used by other companies. In addition to analyzing the Firm’s results on a reported basis, management reviews Firmwide results, including the overhead ratio, on a “managed” basis; these Firmwide managed basis results are non- GAAP financial measures. The Firm also reviews the results of the LOBs on a managed basis. The Firm’s definition of managed basis starts, in each case, with the reported U.S. GAAP results and includes certain reclassifications to present total net revenue for the Firm (and each of the reportable business segments) on an FTE basis. Accordingly, revenue from investments that receive tax credits and tax-exempt securities is presented in the managed results on a basis comparable to taxable investments and securities. These financial measures allow The following summary table provides a reconciliation from the Firm’s reported U.S. GAAP results to managed basis. The Firm prepares its Consolidated Financial Statements in accordance with U.S. GAAP; these financial statements appear on pages 162-166. That presentation, which is referred to as “reported” basis, provides the reader with an understanding of the Firm’s results that can be tracked consistently from year-to-year and enables a comparison of the Firm’s performance with the U.S. GAAP financial statements of other companies. management to assess the comparability of revenue from year-to-year arising from both taxable and tax-exempt sources. The corresponding income tax impact related to tax-exempt items is recorded within income tax expense. These adjustments have no impact on net income as reported by the Firm as a whole or by the LOBs. 2020 2019 2018 Year ended  December 31,  (in millions, except ratios) Reported Fully taxable- equivalent adjustments Managed basis Reported Fully taxable- equivalent adjustments Managed basis Reported Fully taxable- equivalent adjustments Managed basis Other income $ 4,457 $ 2,968 $ 7,425 $ 5,731  $ 2,534  $ 8,265  $ 5,343  $ 1,877  $ 7,220  Total noninterest revenue 64,980 2,968 67,948 58,154  2,534  60,688  53,724  1,877  55,601  Net interest income 54,563 418 54,981 57,245  531  57,776  55,059  628  55,687  Total net revenue 119,543 3,386 122,929 115,399  3,065  118,464  108,783  2,505  111,288  Total noninterest expense 66,656 NA 66,656 65,269  NA 65,269  63,148  NA 63,148  Pre-provision profit 52,887 3,386 56,273 50,130  3,065  53,195  45,635  2,505  48,140  Provision for credit losses 17,480 NA 17,480 5,585  NA 5,585  4,871  NA 4,871  Income before income tax expense 35,407 3,386 38,793 44,545  3,065  47,610  40,764  2,505  43,269  Income tax expense 6,276 3,386 9,662 8,114  3,065  11,179  8,290  2,505  10,795  Net income $ 29,131 NA $ 29,131 $ 36,431  NA $ 36,431  $ 32,474  NA $ 32,474  Overhead ratio 56 % NM 54 % 57 % NM 55 % 58 % NM 57 % (b) (b) (b) (a) (a) (a) In the second quarter of 2020, the Firm reclassified certain spend-based credit card reward costs from marketing expense to be a reduction of card income, with no effect on net income. Prior-period amounts have been revised to conform with the current presentation. (b) Predominantly recognized in CIB, CB and Corporate. JPMorgan Chase & Co./2020 Form 10-K 62