The Charles Schwab Corporation - Parent Company Only Financial Statements

12 Months Ended

Dec. 31, 2016

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

The Charles Schwab Corporation - Parent Company Only Financial Statements

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

Condensed Statements of Income

Year Ended December 31,		2016		2015		2014
Interest revenue	$	22	$	12	$	2
Interest expense		(100)		(86)		(64)
Net interest expense		(78)		(74)		(62)
Other		1		4		1
Expenses excluding interest		(21)		(27)		(24)
Loss before income tax benefit and equity in net income of subsidiaries		(98)		(97)		(85)
Income tax benefit		34		41		32
Loss before equity in net income of subsidiaries		(64)		(56)		(53)
Equity in net income of subsidiaries:
Equity in undistributed net income of subsidiaries		1,690		1,287		1,157
Dividends from bank subsidiary		-		-		45
Dividends from non-bank subsidiaries		263		216		172
Net Income		1,889		1,447		1,321
Preferred stock dividends and other (1)		143		83		60
Net Income Available to Common Stockholders	$	1,746	$	1,364	$	1,261

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

Condensed Balance Sheets

December 31,		2016		2015 (1)
Assets
Cash and cash equivalents	$	1,189	$	1,007
Receivables from subsidiaries		503		419
Available for sale securities		569		569
Held to maturity securities		223		223
Other securities owned – at fair value		75		65
Loans to non-bank subsidiaries		-		468
Investment in non-bank subsidiaries		5,044		4,374
Investment in bank subsidiary		11,726		9,191
Other assets		124		88
Total assets	$	19,453	$	16,404
Liabilities and Stockholders’ Equity
Accrued expenses and other liabilities	$	219	$	189
Payables to subsidiaries		6		11
Long-term debt		2,807		2,802
Total liabilities		3,032		3,002
Stockholders’ equity		16,421		13,402
Total liabilities and stockholders’ equity	$	19,453	$	16,404

(1) Adjusted for the retrospective adoption of ASU 2015-03. See New Accounting Standards in Note 2 for additional information.

Condensed Statements of Cash Flows

Year Ended December 31,		2016		2015		2014
Cash Flows from Operating Activities
Net income	$	1,889	$	1,447	$	1,321
Adjustments to reconcile net income to net cash provided by
operating activities:
Equity in undistributed earnings of subsidiaries		(1,690)		(1,287)		(1,157)
Other		(37)		(31)		(19)
Net change in:
Other securities owned		(10)		9		5
Other assets		(27)		(32)		(9)
Accrued expenses and other liabilities		30		4		(1)
Net cash provided by operating activities		155		110		140
Cash Flows from Investing Activities
Due from subsidiaries – net		95		93		607
Increase in investments in subsidiaries		(1,547)		(611)		(249)
Repayments (Advances) of subordinated loan to Schwab		465		(150)		-
Purchases of available for sale securities		(2)		(842)		-
Proceeds from sales of available for sale securities		2		200		-
Principal payments on available for sale securities		-		75		-
Purchases of held to maturity securities		-		(223)		-
Other investing activities		(4)		-		-
Net cash provided by (used for) investing activities		(991)		(1,458)		358
Cash Flows from Financing Activities
Issuance of long-term debt		-		1,346		-
Repayment of long-term debt		-		(350)		-
Net proceeds from preferred stock offerings		1,316		581		-
Dividends paid		(486)		(387)		(373)
Proceeds from stock options exercised and other		144		90		189
Other financing activities		44		32		29
Net cash provided by (used for) financing activities		1,018		1,312		(155)
Increase (Decrease) in Cash and Cash Equivalents		182		(36)		343
Cash and Cash Equivalents at Beginning of Year		1,007		1,043		700
Cash and Cash Equivalents at End of Year	$	1,189	$	1,007	$	1,043