The Charles Schwab Corporation - Parent Company Only Financial Statements (Tables)

12 Months Ended

Dec. 31, 2015

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

Condensed Statements of Income

Year Ended December 31,		2015		2014		2013
Interest revenue	$	12	$	2	$	4
Interest expense		(86)		(64)		(65)
Net interest expense		(74)		(62)		(61)
Other		4		1		-
Expenses excluding interest		(27)		(24)		(28)
Loss before income tax benefit and equity in net income of subsidiaries		(97)		(85)		(89)
Income tax benefit		41		32		38
Loss before equity in net income of subsidiaries		(56)		(53)		(51)
Equity in net income of subsidiaries:
Equity in undistributed net income of subsidiaries		1,287		1,157		830
Dividends from bank subsidiary		-		45		163
Dividends from non-bank subsidiaries		216		172		129
Net Income		1,447		1,321		1,071
Preferred stock dividends and other (1)		83		60		61
Net Income Available to Common Stockholders	$	1,364	$	1,261	$	1,010

(1) Includes preferred stock dividends and undistributed earnings and dividends allocated to non-vested restricted stock units.

Condensed Balance Sheets

December 31,		2015		2014
Assets
Cash and cash equivalents	$	1,007	$	1,043
Receivables from subsidiaries		419		360
Securities available for sale		569		-
Securities held to maturity		223		-
Other securities owned – at fair value		65		74
Loans to non-bank subsidiaries		468		327
Investment in non-bank subsidiaries		4,374		4,083
Investment in bank subsidiary		9,191		7,883
Other assets		101		68
Total assets	$	16,417	$	13,838
Liabilities and Stockholders’ Equity
Accrued expenses and other liabilities	$	189	$	185
Payables to subsidiaries		11		34
Long-term debt		2,815		1,816
Total liabilities		3,015		2,035
Stockholders’ equity		13,402		11,803
Total liabilities and stockholders’ equity	$	16,417	$	13,838

Condensed Statements of Cash Flows

Year Ended December 31,		2015		2014		2013
Cash Flows from Operating Activities
Net income	$	1,447	$	1,321	$	1,071
Adjustments to reconcile net income to net cash provided by
operating activities:
Equity in undistributed earnings of subsidiaries		(1,287)		(1,157)		(830)
Provision for deferred income taxes		8		4		(11)
Other		(39)		(23)		(4)
Net change in:
Other securities owned		9		5		(5)
Other assets		(32)		(9)		29
Accrued expenses and other liabilities		4		(1)		13
Net cash provided by operating activities		110		140		263
Cash Flows from Investing Activities
Due from (due to) subsidiaries – net		93		607		(546)
Increase in investments in subsidiaries		(611)		(249)		(225)
Increase in subordinated loan to CS & Co.		(150)		-		-
Purchases of securities available for sale		(842)		-		-
Proceeds from sales of securities available for sale		200		-		-
Principal payments on securities available for sale		75		-		-
Purchases of securities held to maturity		(223)		-		-
Other investing activities		-		-		(1)
Net cash provided by (used for) investing activities		(1,458)		358		(772)
Cash Flows from Financing Activities
Repayment of commercial paper		-		-		(300)
Issuance of long-term debt		1,346		-		275
Repayment of long-term debt		(350)		-		-
Net proceeds from preferred stock offering		581		-		-
Dividends paid		(387)		(373)		(368)
Proceeds from stock options exercised and other		90		189		258
Other financing activities		32		29		5
Net cash provided by (used for) financing activities		1,312		(155)		(130)
Increase (Decrease) in Cash and Cash Equivalents		(36)		343		(639)
Cash and Cash Equivalents at Beginning of Year		1,043		700		1,339
Cash and Cash Equivalents at End of Year	$	1,007	$	1,043	$	700