The Charles Schwab Corporation - Parent Company Only Financial Statements

12 Months Ended

Dec. 31, 2013

The Charles Schwab Corporation – Parent Company Only Financial Statements [Abstract]

The Charles Schwab Corporation - Parent Company Only Financial Statements

26.The Charles Schwab Corporation – Parent Company Only Financial Statements

Condensed Statements of Income

Year Ended December 31,		2013		2012		2011
Interest revenue	$	4	$	6	$	4
Interest expense		(65)		(97)		(103)
Net interest revenue		(61)		(91)		(99)
Other revenue – net		-		(30)		8
Expenses excluding interest		(28)		(23)		(30)
Loss before income tax benefit and equity in net income of subsidiaries		(89)		(144)		(121)
Income tax benefit		38		58		43
Loss before equity in net income of subsidiaries		(51)		(86)		(78)
Equity in net income of subsidiaries:
Equity in undistributed net income of subsidiaries		830		662		600
Dividends from bank subsidiary		163		50		150
Dividends from non-bank subsidiaries		129		302		192
Net Income		1,071		928		864
Preferred stock dividends		61		45		-
Net Income Available to Common Stockholders	$	1,010	$	883	$	864

Condensed Balance Sheets

December 31,		2013		2012
Assets
Cash and cash equivalents	$	700	$	1,339
Receivables from subsidiaries		162		80
Other securities owned – at fair value		80		74
Loans to non-bank subsidiaries		980		404
Investment in non-bank subsidiaries		3,828		3,615
Investment in bank subsidiary		6,576		6,022
Other assets		65		88
Total assets	$	12,391	$	11,622
Liabilities and Stockholders’ Equity
Accrued expenses and other liabilities	$	187	$	482
Payables to subsidiaries		9		14
Long-term debt		1,814		1,537
Total liabilities		2,010		2,033
Stockholders’ equity		10,381		9,589
Total liabilities and stockholders’ equity	$	12,391	$	11,622

Condensed Statements of Cash Flows

Year Ended December 31,		2013		2012		2011
Cash Flows from Operating Activities
Net income	$	1,071	$	928	$	864
Adjustments to reconcile net income to net cash provided by
operating activities:
Equity in undistributed earnings of subsidiaries		(830)		(662)		(591)
Provision for deferred income taxes		(11)		9		3
Other		(4)		39		1
Net change in:
Other securities owned		(5)		3		6
Other assets		29		(21)		26
Accrued expenses and other liabilities		13		(5)		(76)
Net cash provided by operating activities		263		291		233
Cash Flows from Investing Activities
Due from subsidiaries – net		(546)		43		24
Increase in investments in subsidiaries		(225)		(307)		(366)
Other investing activities		(1)		-		8
Net cash used for investing activities		(772)		(264)		(334)
Cash Flows from Financing Activities
Issuance of commercial paper		-		300		-
Repayment of commercial paper		(300)		-		-
Issuance of long-term debt		275		350		-
Repayment of long-term debt		-		(727)		-
Premium paid on debt exchange		-		(19)		-
Net proceeds from preferred stock offering		-		863		-
Dividends paid		(368)		(337)		(295)
Proceeds from stock options exercised and other		258		35		96
Other financing activities		5		(5)		3
Net cash (used for) provided by financing activities		(130)		460		(196)
(Decrease) Increase in Cash and Cash Equivalents		(639)		487		(297)
Cash and Cash Equivalents at Beginning of Year		1,339		852		1,149
Cash and Cash Equivalents at End of Year	$	700	$	1,339	$	852