For the fiscal year ended December 31, 2017 | Commission file number 1-9700 |
Delaware (State or other jurisdiction of incorporation or organization) | 94-3025021 (I.R.S. Employer Identification No.) |
Title of each class | Name of each exchange on which registered |
Common Stock – $.01 par value per share | New York Stock Exchange |
Depositary Shares, each representing a 1/40th ownership interest in a | |
share of 6.00% Non-Cumulative Preferred Stock, Series C | New York Stock Exchange |
Depositary Shares, each representing a 1/40th ownership interest in a | |
share of 5.95% Non-Cumulative Preferred Stock, Series D | New York Stock Exchange |
Large accelerated filer ☒ | Accelerated filer ☐ |
Non-accelerated filer ☐ (Do not check if a smaller reporting company) | Smaller reporting company ☐ |
Emerging growth company ☐ |
Item 1. | |||
Item 1A. | |||
Item 1B. | |||
Item 2. | |||
Item 3. | |||
Item 4. | |||
Item 5. | |||
Item 6. | |||
Item 7. | |||
Item 7A. | |||
Item 8. | |||
Item 9. | |||
Item 9A. | |||
Item 9B. | |||
Item 10. | |||
Item 11. | |||
Item 12. | 103 | ||
Item 13. | 103 | ||
Item 14. | 103 | ||
Item 15. | 104 | ||
105 | |||
110 | |||
Item 1. | Business |
• | Charles Schwab & Co., Inc. (CS&Co), incorporated in 1971, a securities broker-dealer with over 345 domestic branch offices in 46 states, as well as a branch in the Commonwealth of Puerto Rico. In addition, Schwab serves clients in England, Hong Kong, Singapore, and Australia through various subsidiaries; |
• | Charles Schwab Bank (Schwab Bank), a federal savings bank; and |
• | Charles Schwab Investment Management, Inc. (CSIM), the investment advisor for Schwab’s proprietary mutual funds (Schwab Funds®) and Schwab’s exchange-traded funds (Schwab ETFs™). |
• | Scale and Size of the Business – As one of the largest investment services firms in the United States (U.S.), we are able to spread operating costs, amortize new investments over a large base of clients, and have the resources to evolve capabilities to meet client needs. |
• | Operating Efficiency – Coupled with scale, our operating efficiency and sharing of infrastructure across different businesses creates a cost advantage that enables us to competitively price products and services while profitably serving many different client channels. |
• | Operating Structure – Adding bank and asset management capabilities to the broker-dealers helps serve a wider array of client needs, thereby deepening client relationships, enhancing the stability of client assets, and enabling diversified revenue streams. |
• | Brand and Corporate Reputation – In an industry dependent on trust, Schwab’s reputation and brand across multiple constituents enables us to attract clients and employees while credibly introducing new products to the market. |
• | Service Culture – Delivering a great client experience earns the trust and loyalty of clients and increases the likelihood that those clients will refer others. |
• | Willingness to Disrupt – Management’s willingness to challenge the status quo to benefit clients fosters innovation and continuous improvement, which helps to attract more clients and assets. |
• | Brokerage – an array of full-feature brokerage accounts with margin lending, options trading, and cash management capabilities including third-party certificates of deposit; |
• | Mutual funds – third-party mutual funds through the Mutual Fund Marketplace®, including no-transaction fee mutual funds through the Mutual Fund OneSource® service, which also includes proprietary mutual funds, plus mutual fund trading and clearing services to broker-dealers; |
• | Exchange-traded funds – an extensive offering of ETFs, including many proprietary and third-party ETFs available without a commission through Schwab ETF OneSource™; |
• | Advice solutions – managed portfolios of both proprietary and third-party mutual funds and ETFs, separately managed accounts, customized personal advice for tailored portfolios, specialized planning, and full-time portfolio management; |
• | Banking – checking and savings accounts, first lien residential real estate mortgage loans (First Mortgages), home equity lines of credit (HELOCs), and pledged asset lines (PALs); and |
• | Trust – trust custody services, personal trust reporting services, and administrative trustee services. |
Item 1A. | Risk Factors |
• | Large positions in financial instruments collateralized by assets with similar economic characteristics or in securities of a single issuer or industry; |
• | Mortgage loans and HELOCs to banking clients which are secured by properties in the same geographic region; and |
• | Client margins, options or futures, pledged assets, and securities lending activities collateralized by or linked to securities of a single issuer, index, or industry. |
• | Our exposure to changes in interest rates; |
• | Speculation in the investment community or the press about, or actual changes in, our competitive position, organizational structure, executive team, operations, financial condition, financial reporting and results, expense discipline, or strategic transactions; |
• | The announcement of new products, services, acquisitions, or dispositions by us or our competitors; and |
• | Increases or decreases in revenue or earnings, changes in earnings estimates by the investment community, and variations between estimated financial results and actual financial results. |
December 31, 2017 | Square Footage | |
(amounts in thousands) | Leased | Owned |
Location | ||
Corporate headquarters: | ||
San Francisco, CA | 569 | — |
Service and other office space: | ||
Phoenix, AZ | 28 | 720 |
Denver, CO | — | 731 |
Austin, TX | 219 | 191 |
Dallas, TX | 188 | — |
Indianapolis, IN | — | 161 |
Orlando, FL | 148 | — |
Richfield, OH | — | 117 |
El Paso, TX | — | 105 |
Chicago, IL | 104 | — |
Item 3. | Legal Proceedings |
Item 4. | Mine Safety Disclosures |
December 31, | 2012 | 2013 | 2014 | 2015 | 2016 | 2017 | |||||||||||||||||
The Charles Schwab Corporation | $ | 100 | $ | 183 | $ | 215 | $ | 236 | $ | 286 | $ | 375 | |||||||||||
Standard & Poor’s 500 Index | $ | 100 | $ | 132 | $ | 151 | $ | 153 | $ | 171 | $ | 208 | |||||||||||
Dow Jones U.S. Investment Services Index | $ | 100 | $ | 162 | $ | 185 | $ | 184 | $ | 233 | $ | 290 |
Month | Total Number of Shares Purchased (in thousands) | Average Price Paid per Share | ||||
October: | ||||||
Employee transactions (1) | 4 | $ | 44.12 | |||
November: | ||||||
Employee transactions (1) | 779 | $ | 44.70 | |||
December: | ||||||
Employee transactions (1) | 2 | $ | 48.97 | |||
Total: | ||||||
Employee transactions (1) | 785 | $ | 44.71 |
Item 6. | Selected Financial Data |
Selected Financial and Operating Data | |||||||||||||||||||||||
(In Millions, Except Per Share Amounts, Ratios, or as Noted) | |||||||||||||||||||||||
Growth Rates | |||||||||||||||||||||||
Compounded 4-Year (1) 2013-2017 | Annual 1-Year 2016-2017 | 2017 | 2016 | 2015 | 2014 | 2013 | |||||||||||||||||
Results of Operations | |||||||||||||||||||||||
Net revenues | 12% | 15% | $ | 8,618 | $ | 7,478 | $ | 6,380 | $ | 6,058 | $ | 5,435 | |||||||||||
Expenses excluding interest | 7% | 11% | $ | 4,968 | $ | 4,485 | $ | 4,101 | $ | 3,943 | $ | 3,730 | |||||||||||
Net income | 22% | 25% | $ | 2,354 | $ | 1,889 | $ | 1,447 | $ | 1,321 | $ | 1,071 | |||||||||||
Net income available to common stockholders | 21% | 25% | $ | 2,180 | $ | 1,746 | $ | 1,364 | $ | 1,261 | $ | 1,010 | |||||||||||
Earnings per common share: | |||||||||||||||||||||||
Basic | 20% | 23% | $ | 1.63 | $ | 1.32 | $ | 1.04 | $ | .96 | $ | .78 | |||||||||||
Diluted | 20% | 23% | $ | 1.61 | $ | 1.31 | $ | 1.03 | $ | .95 | $ | .78 | |||||||||||
Dividends declared per common share | $ | .32 | $ | .27 | $ | .24 | $ | .24 | $ | .24 | |||||||||||||
Weighted average common shares outstanding: | |||||||||||||||||||||||
Basic | 1% | 1% | 1,339 | 1,324 | 1,315 | 1,303 | 1,285 | ||||||||||||||||
Diluted | 1% | 1% | 1,353 | 1,334 | 1,327 | 1,315 | 1,293 | ||||||||||||||||
Net interest revenue as a percentage of net revenues | 50 | % | 44 | % | 40 | % | 38 | % | 36 | % | |||||||||||||
Asset management and administration fees as a percentage of net revenues | 39 | % | 41 | % | 41 | % | 42 | % | 43 | % | |||||||||||||
Trading revenue as a percentage of net revenues | 8 | % | 11 | % | 14 | % | 15 | % | 17 | % | |||||||||||||
Effective income tax rate | 35.5 | % | 36.9 | % | 36.5 | % | 37.5 | % | 37.2 | % | |||||||||||||
Performance Measures | |||||||||||||||||||||||
Net revenue growth | 15 | % | 17 | % | 5 | % | 11 | % | 11 | % | |||||||||||||
Pre-tax profit margin | 42.4 | % | 40.0 | % | 35.7 | % | 34.9 | % | 31.4 | % | |||||||||||||
Return on average common stockholders’ equity | 15 | % | 14 | % | 12 | % | 12 | % | 11 | % | |||||||||||||
Financial Condition (at year end) | |||||||||||||||||||||||
Total assets | 14% | 9% | $ | 243,274 | $ | 223,383 | $ | 183,705 | $ | 154,635 | $ | 143,633 | |||||||||||
Short-term borrowings | N/M | N/M | $ | 15,000 | — | — | — | — | |||||||||||||||
Long-term debt | 26% | 65% | $ | 4,753 | $ | 2,876 | $ | 2,877 | $ | 1,892 | $ | 1,894 | |||||||||||
Preferred stock | 34% | — | $ | 2,793 | $ | 2,783 | $ | 1,459 | $ | 872 | $ | 869 | |||||||||||
Total stockholders’ equity | 16% | 13% | $ | 18,525 | $ | 16,421 | $ | 13,402 | $ | 11,803 | $ | 10,381 | |||||||||||
Assets to stockholders’ equity ratio | 13 | 14 | 14 | 13 | 14 | ||||||||||||||||||
Debt to total capital ratio (2) | 52 | % | 15 | % | 18 | % | 14 | % | 15 | % | |||||||||||||
Employee Information | |||||||||||||||||||||||
Full-time equivalent employees (in thousands, at year end) | 6% | 9% | 17.6 | 16.2 | 15.3 | 14.6 | 13.8 |
Item 7. | Management’s Discussion and Analysis of Financial Condition and Results of Operations |
• | Schwab seeking to maximize its market valuation and stockholder returns over time; the belief that developing trusted relationships will translate into more client assets which drives revenue and, along with expense discipline, generates earnings growth and builds stockholder value; and Schwab’s ability to pursue its business strategy and maintain its market leadership position; (see Business Strategy and Competitive Environment in Part I, Item 1); |
• | The impact of legal proceedings and regulatory matters (see Legal Proceedings in Part I, Item 3 and Item 8 – Note 13); |
• | The adjustment of rates paid on client-related liabilities; the stability, rate sensitivity, and duration of client-related liabilities; the opportunity to migrate non-rate sensitive cash in sweep money market funds to banking subsidiaries; increasing the duration of interest-earning assets; and Schwab’s positioning to benefit from an increase in interest rates and limit its exposure to falling rates; (see Net Interest Revenue in Part II, Item 7); |
• | The estimated net reduction in Schwab’s effective income tax rate for 2018; (see Taxes on Income in Part II, Item 7); |
• | Sources of liquidity, capital, and level of dividends (see Liquidity Risk in Part II, Item 7); |
• | Capital ratios (see Regulatory Capital Requirements in Part II, Item 7); |
• | The impact of changes in management’s estimates on Schwab’s results of operations (see Critical Accounting Estimates in Part II, Item 7); |
• | The expected impact of new accounting standards not yet adopted (see Item 8 – Note 2); and |
• | The impact of changes in the likelihood of indemnification and guarantee payment obligations on Schwab’s results of operations (see Item 8 – Note 13). |
• | General market conditions, including the level of interest rates, equity valuations and trading activity; |
• | Our ability to attract and retain clients, develop trusted relationships, and grow client assets; |
• | Client use of our investment advisory services and other products and services; |
• | The level of client assets, including cash balances; |
• | Competitive pressure on pricing, including deposit rates; |
• | Client sensitivity to interest rates; |
• | Regulatory guidance; |
• | Timing, amount, and impact of the migration of certain balances from sweep money market funds into Schwab Bank; |
• | Changes to tax deductions; |
• | Capital and liquidity needs and management; |
• | Our ability to manage expenses; |
• | The effect of adverse developments in litigation or regulatory matters and the extent of any related charges; |
• | The availability and terms of external financing; |
• | Potential breaches of contractual terms for which we have indemnification and guarantee obligations; and |
• | Our ability to develop and launch new products, services and capabilities in a timely and successful manner. |
Growth Rate 1-Year 2016-2017 | 2017 | 2016 | 2015 | ||||||||||
Client Metrics: | |||||||||||||
Net new client assets (in billions) | 86% | $ | 233.1 | $ | 125.5 | $ | 139.4 | ||||||
Core net new client assets (in billions) (1) | 58% | $ | 198.6 | $ | 125.5 | $ | 134.7 | ||||||
Client assets (in billions, at year end) | 21% | $ | 3,361.8 | $ | 2,779.5 | $ | 2,513.8 | ||||||
Average client assets (in billions) | 17% | $ | 3,060.2 | $ | 2,614.7 | $ | 2,531.8 | ||||||
New brokerage accounts (in thousands) | 32% | 1,441 | 1,093 | 1,070 | |||||||||
Active brokerage accounts (in thousands, at year end) | 6% | 10,755 | 10,155 | 9,769 | |||||||||
Assets receiving ongoing advisory services (in billions, at year end) | 21% | $ | 1,699.8 | $ | 1,401.4 | $ | 1,253.7 | ||||||
Client cash as a percentage of client assets (at year end) | 10.8 | % | 13.0 | % | 13.0 | % | |||||||
Company Financial Metrics: | |||||||||||||
Total net revenues | 15% | $ | 8,618 | $ | 7,478 | $ | 6,380 | ||||||
Total expenses excluding interest | 11% | 4,968 | 4,485 | 4,101 | |||||||||
Income before taxes on income | 22% | 3,650 | 2,993 | 2,279 | |||||||||
Taxes on income | 17% | 1,296 | 1,104 | 832 | |||||||||
Net income | 25% | $ | 2,354 | $ | 1,889 | $ | 1,447 | ||||||
Preferred stock dividends and other | 22% | 174 | 143 | 83 | |||||||||
Net income available to common stockholders | 25% | $ | 2,180 | $ | 1,746 | $ | 1,364 | ||||||
Earnings per common share — diluted | 23% | $ | 1.61 | $ | 1.31 | $ | 1.03 | ||||||
Net revenue growth from prior year | 15 | % | 17 | % | 5 | % | |||||||
Pre-tax profit margin | 42.4 | % | 40.0 | % | 35.7 | % | |||||||
Return on average common stockholders’ equity | 15 | % | 14 | % | 12 | % | |||||||
Expenses excluding interest as a percentage of average client assets | 0.16 | % | 0.17 | % | 0.16 | % | |||||||
Consolidated Tier 1 Leverage Ratio (at year end) | 7.6 | % | 7.2 | % | 7.1 | % |
Year Ended December 31, | 2017 | 2016 | 2015 | |||||||||||||||||
Growth Rate 2016-2017 | Amount | % of Total Net Revenues | Amount | % of Total Net Revenues | Amount | % of Total Net Revenues | ||||||||||||||
Net interest revenue | ||||||||||||||||||||
Interest revenue | 32 | % | $ | 4,624 | 54 | % | $ | 3,493 | 46 | % | $ | 2,657 | 42 | % | ||||||
Interest expense | 100 | % | (342 | ) | (4 | )% | (171 | ) | (2 | )% | (132 | ) | (2 | )% | ||||||
Net interest revenue | 29 | % | 4,282 | 50 | % | 3,322 | 44 | % | 2,525 | 40 | % | |||||||||
Asset management and administration fees | ||||||||||||||||||||
Mutual fund and ETF service fees | 10 | % | $ | 2,045 | 24 | % | 1,853 | 25 | % | 1,479 | 23 | % | ||||||||
Advice solutions | 14 | % | 1,043 | 12 | % | 915 | 12 | % | 898 | 14 | % | |||||||||
Other | 6 | % | 304 | 3 | % | 287 | 4 | % | 273 | 4 | % | |||||||||
Asset management and administration fees | 11 | % | 3,392 | 39 | % | 3,055 | 41 | % | 2,650 | 41 | % | |||||||||
Trading revenue | ||||||||||||||||||||
Commissions | (23 | )% | 600 | 7 | % | 779 | 10 | % | 822 | 13 | % | |||||||||
Principal transactions | 17 | % | 54 | 1 | % | 46 | 1 | % | 44 | 1 | % | |||||||||
Trading revenue | (21 | )% | 654 | 8 | % | 825 | 11 | % | 866 | 14 | % | |||||||||
Other | 7 | % | 290 | 3 | % | 271 | 4 | % | 328 | 5 | % | |||||||||
Provision for loan losses | (100 | )% | — | — | 5 | — | 11 | — | ||||||||||||
Total net revenues | 15 | % | $ | 8,618 | 100 | % | $ | 7,478 | 100 | % | $ | 6,380 | 100 | % |
Year Ended December 31, | 2017 | 2016 | 2015 | |||||||||||||||||||||||||||||
Average Balance | Interest Revenue/ Expense | Average Yield/ Rate | Average Balance | Interest Revenue/ Expense | Average Yield/ Rate | Average Balance | Interest Revenue/ Expense | Average Yield/ Rate | ||||||||||||||||||||||||
Interest-earning assets: | ||||||||||||||||||||||||||||||||
Cash and cash equivalents | $ | 9,931 | $ | 109 | 1.10 | % | $ | 11,143 | $ | 57 | 0.51 | % | $ | 9,358 | $ | 24 | 0.26 | % | ||||||||||||||
Cash and investments segregated | 18,525 | 166 | 0.90 | % | 20,104 | 93 | 0.46 | % | 18,606 | 31 | 0.17 | % | ||||||||||||||||||||
Broker-related receivables (1) | 430 | 3 | 0.70 | % | 558 | 1 | 0.22 | % | 274 | — | 0.07 | % | ||||||||||||||||||||
Receivables from brokerage clients | 16,269 | 575 | 3.53 | % | 15,001 | 497 | 3.31 | % | 15,212 | 502 | 3.30 | % | ||||||||||||||||||||
Available for sale securities (2) | 53,040 | 815 | 1.54 | % | 72,586 | 883 | 1.22 | % | 62,249 | 629 | 1.01 | % | ||||||||||||||||||||
Held to maturity securities | 103,599 | 2,354 | 2.27 | % | 57,451 | 1,402 | 2.44 | % | 38,280 | 957 | 2.50 | % | ||||||||||||||||||||
Bank loans | 15,919 | 472 | 2.97 | % | 14,715 | 400 | 2.72 | % | 13,973 | 369 | 2.64 | % | ||||||||||||||||||||
Total interest-earning assets | 217,713 | 4,494 | 2.06 | % | 191,558 | 3,333 | 1.74 | % | 157,952 | 2,512 | 1.59 | % | ||||||||||||||||||||
Other interest revenue | 130 | 160 | 145 | |||||||||||||||||||||||||||||
Total interest-earning assets | $ | 217,713 | $ | 4,624 | 2.12 | % | $ | 191,558 | $ | 3,493 | 1.82 | % | $ | 157,952 | $ | 2,657 | 1.68 | % | ||||||||||||||
Funding sources: | ||||||||||||||||||||||||||||||||
Bank deposits | $ | 163,998 | $ | 148 | 0.09 | % | $ | 141,432 | $ | 37 | 0.03 | % | $ | 113,464 | $ | 29 | 0.03 | % | ||||||||||||||
Payables to brokerage clients | 25,403 | 16 | 0.06 | % | 26,311 | 3 | 0.01 | % | 25,651 | 2 | 0.01 | % | ||||||||||||||||||||
Short-term borrowings (1) | 3,503 | 41 | 1.17 | % | 1,864 | 9 | 0.48 | % | 21 | — | 0.27 | % | ||||||||||||||||||||
Long-term debt | 3,431 | 119 | 3.47 | % | 2,876 | 104 | 3.62 | % | 2,717 | 92 | 3.39 | % | ||||||||||||||||||||
Total interest-bearing liabilities | 196,335 | 324 | 0.17 | % | 172,483 | 153 | 0.09 | % | 141,853 | 123 | 0.09 | % | ||||||||||||||||||||
Non-interest-bearing funding sources | 21,378 | 19,075 | 16,099 | |||||||||||||||||||||||||||||
Other interest expense | 18 | 18 | 9 | |||||||||||||||||||||||||||||
Total funding sources | $ | 217,713 | $ | 342 | 0.15 | % | $ | 191,558 | $ | 171 | 0.09 | % | $ | 157,952 | $ | 132 | 0.08 | % | ||||||||||||||
Net interest revenue | $ | 4,282 | 1.97 | % | $ | 3,322 | 1.73 | % | $ | 2,525 | 1.60 | % |
• | Gathering additional assets from new and current clients; |
• | Transferring uninvested cash balances in certain client brokerage accounts to the bank sweep feature; and |
• | Establishing the bank sweep feature as the default investment option for uninvested cash balances within all new Investor and Advisor Services brokerage accounts during 2016. |
Schwab Money | Schwab Equity and | Mutual Fund OneSource® | ||||||||||||||||||||||||||||||||||
Market Funds | Bond Funds and ETFs | and Other NTF (1) Funds | ||||||||||||||||||||||||||||||||||
Year Ended December 31, | 2017 | 2016 | 2015 | 2017 | 2016 | 2015 | 2017 | 2016 | 2015 | |||||||||||||||||||||||||||
Balance at beginning of period | $ | 163,495 | $ | 166,148 | $ | 167,909 | $ | 125,813 | $ | 102,112 | $ | 88,450 | $ | 198,924 | $ | 207,654 | $ | 234,381 | ||||||||||||||||||
Net inflows (outflows) | (486 | ) | (2,765 | ) | (1,947 | ) | 30,771 | 13,858 | 15,542 | (27,485 | ) | (22,469 | ) | (23,014 | ) | |||||||||||||||||||||
Net market gains (losses) and other (2) | 641 | 112 | 186 | 25,024 | 9,843 | (1,880 | ) | 53,763 | 13,739 | (3,713 | ) | |||||||||||||||||||||||||
Balance at end of period | $ | 163,650 | $ | 163,495 | $ | 166,148 | $ | 181,608 | $ | 125,813 | $ | 102,112 | $ | 225,202 | $ | 198,924 | $ | 207,654 |
Year Ended December 31, | 2017 | 2016 | 2015 | |||||||||||||||||||||||||||||
Average Client Assets | Revenue | Average Fee | Average Client Assets | Revenue | Average Fee | Average Client Assets | Revenue | Average Fee | ||||||||||||||||||||||||
Schwab money market funds | ||||||||||||||||||||||||||||||||
before fee waivers | $ | 160,735 | $ | 875 | 0.54 | % | $ | 164,120 | $ | 962 | 0.59 | % | $ | 161,381 | $ | 947 | 0.59 | % | ||||||||||||||
Fee waivers | (10 | ) | (224 | ) | (672 | ) | ||||||||||||||||||||||||||
Schwab money market funds | 160,735 | 865 | 0.54 | % | 164,120 | 738 | 0.45 | % | 161,381 | 275 | 0.17 | % | ||||||||||||||||||||
Schwab equity and bond funds and ETFs | 158,625 | 223 | 0.14 | % | 115,849 | 217 | 0.19 | % | 102,486 | 217 | 0.21 | % | ||||||||||||||||||||
Mutual Fund OneSource® and other | ||||||||||||||||||||||||||||||||
NTF funds | 215,333 | 706 | 0.33 | % | 199,389 | 676 | 0.34 | % | 225,347 | 764 | 0.34 | % | ||||||||||||||||||||
Other third-party mutual funds and ETFs (1) | 286,111 | 251 | 0.09 | % | 254,584 | 222 | 0.09 | % | 251,491 | 223 | 0.09 | % | ||||||||||||||||||||
Total mutual funds and ETFs (2) | $ | 820,804 | 2,045 | 0.25 | % | $ | 733,942 | 1,853 | 0.25 | % | $ | 740,705 | 1,479 | 0.20 | % | |||||||||||||||||
Advice solutions (2) : | ||||||||||||||||||||||||||||||||
Fee-based | $ | 203,794 | 1,043 | 0.51 | % | $ | 177,409 | 915 | 0.52 | % | $ | 172,302 | 898 | 0.52 | % | |||||||||||||||||
Non-fee-based | 48,936 | — | — | 35,262 | — | — | 29,118 | — | — | |||||||||||||||||||||||
Total advice solutions | $ | 252,730 | 1,043 | 0.41 | % | $ | 212,671 | 915 | 0.43 | % | $ | 201,420 | 898 | 0.45 | % | |||||||||||||||||
Other balance-based fees (3) | 417,659 | 258 | 0.06 | % | 339,071 | 235 | 0.07 | % | 324,701 | 226 | 0.07 | % | ||||||||||||||||||||
Other (4) | 46 | 52 | 47 | |||||||||||||||||||||||||||||
Total asset management | ||||||||||||||||||||||||||||||||
and administration fees | $ | 3,392 | $ | 3,055 | $ | 2,650 |
Year Ended December 31, | Growth Rate 2016-2017 | 2017 | 2016 | 2015 | ||||||||||
DARTs (in thousands) | 10 | % | 321.3 | 291.6 | 292.0 | |||||||||
Clients’ daily average trades (in thousands) | 8 | % | 608.8 | 561.8 | 536.9 | |||||||||
Number of trading days | (1 | )% | 250.0 | 251.5 | 251.0 | |||||||||
Daily average revenue per revenue trade | (27 | )% | $ | 8.20 | $ | 11.23 | $ | 11.83 | ||||||
Trading revenue | (21 | )% | $ | 654 | $ | 825 | $ | 866 |
Growth Rate 2016-2017 | 2017 | 2016 | 2015 | |||||||||||
Compensation and benefits | ||||||||||||||
Salaries and wages | 9 | % | $ | 1,496 | $ | 1,368 | $ | 1,258 | ||||||
Incentive compensation | 16 | % | 797 | 689 | 618 | |||||||||
Employee benefits and other | 9 | % | 444 | 409 | 365 | |||||||||
Total compensation and benefits | 11 | % | $ | 2,737 | $ | 2,466 | $ | 2,241 | ||||||
Professional services | 15 | % | 580 | 506 | 459 | |||||||||
Occupancy and equipment | 10 | % | 436 | 398 | 353 | |||||||||
Advertising and market development | 1 | % | 268 | 265 | 249 | |||||||||
Communications | (3 | )% | 231 | 237 | 233 | |||||||||
Depreciation and amortization | 15 | % | 269 | 234 | 224 | |||||||||
Regulatory fees and assessments | 24 | % | 179 | 144 | 107 | |||||||||
Other | 14 | % | 268 | 235 | 235 | |||||||||
Total expenses excluding interest | 11 | % | $ | 4,968 | $ | 4,485 | $ | 4,101 | ||||||
Expenses as a percentage of total net revenues: | ||||||||||||||
Compensation and benefits | 32 | % | 33 | % | 35 | % | ||||||||
Advertising and market development | 3 | % | 4 | % | 4 | % | ||||||||
Full-time equivalent employees (in thousands): | ||||||||||||||
At year end | 9 | % | 17.6 | 16.2 | 15.3 | |||||||||
Average | 6 | % | 16.9 | 15.9 | 15.1 |
Investor Services | Advisor Services | Total | |||||||||||||||||||||||||||||||||||||||||||
Growth Rate 2016-2017 | 2017 | 2016 | 2015 | Growth Rate 2016-2017 | 2017 | 2016 | 2015 | Growth Rate 2016-2017 | 2017 | 2016 | 2015 | ||||||||||||||||||||||||||||||||||
Year Ended December 31, | |||||||||||||||||||||||||||||||||||||||||||||
Net Revenues | |||||||||||||||||||||||||||||||||||||||||||||
Net interest revenue | 25 | % | $ | 3,231 | $ | 2,591 | $ | 2,133 | 44 | % | $ | 1,051 | $ | 731 | $ | 392 | 29 | % | $ | 4,282 | $ | 3,322 | $ | 2,525 | |||||||||||||||||||||
Asset management and | |||||||||||||||||||||||||||||||||||||||||||||
administration fees | 12 | % | 2,344 | 2,093 | 1,837 | 9 | % | 1,048 | 962 | 813 | 11 | % | 3,392 | 3,055 | 2,650 | ||||||||||||||||||||||||||||||
Trading revenue | (22 | )% | 408 | 524 | 556 | (18 | )% | 246 | 301 | 310 | (21 | )% | 654 | 825 | 866 | ||||||||||||||||||||||||||||||
Other | 9 | % | 217 | 199 | 234 | 1 | % | 73 | 72 | 94 | 7 | % | 290 | 271 | 328 | ||||||||||||||||||||||||||||||
Provision for loan losses | (100 | )% | — | 4 | 11 | (100 | )% | — | 1 | — | (100 | )% | — | 5 | 11 | ||||||||||||||||||||||||||||||
Total net revenues | 15 | % | 6,200 | 5,411 | 4,771 | 17 | % | 2,418 | 2,067 | 1,609 | 15 | % | 8,618 | 7,478 | 6,380 | ||||||||||||||||||||||||||||||
Expenses Excluding | |||||||||||||||||||||||||||||||||||||||||||||
Interest | 10 | % | 3,725 | 3,380 | 3,090 | 12 | % | 1,243 | 1,105 | 1,011 | 11 | % | 4,968 | 4,485 | 4,101 | ||||||||||||||||||||||||||||||
Income before taxes | |||||||||||||||||||||||||||||||||||||||||||||
on income | 22 | % | $ | 2,475 | $ | 2,031 | $ | 1,681 | 22 | % | $ | 1,175 | $ | 962 | $ | 598 | 22 | % | $ | 3,650 | $ | 2,993 | $ | 2,279 |
• | Compliance Risk Committee – provides oversight of compliance risk management programs and policies providing an aggregate view of compliance risk exposure; |
• | Financial Risk Oversight Committee – provides oversight of and approves credit, liquidity, capital and market risk policies, limits, and exposures; |
• | New Products and Services Risk Oversight Committee – provides oversight of, and approves corporate policy and procedures relating to the risk governance of new products and services; and |
• | Operational Risk Oversight Committee – provides oversight of and approves operational risk management policies, risk tolerance levels, and operational risk governance processes, and includes sub-committees covering Fiduciary, Data, Information Security, Model Governance, and Third-Party risk. |
December 31, | 2017 | 2016 | ||
Increase of 100 basis points | 3.3 | % | 6.5 | % |
Decrease of 100 basis points | (6.2 | )% | (9.8 | )% |
Description | Borrower | Outstanding | Available | ||||
Committed, unsecured credit facility with various external banks (1) | CSC | $ | — | $ | 750 | ||
Uncommitted, unsecured lines of credit with various external banks | CSC, CS&Co | — | 1,199 | ||||
Federal Reserve Bank discount window (2) | Schwab Bank | — | 2,458 | ||||
Federal Home Loan Bank secured credit facility (3) | Schwab Bank | 15,000 | 17,301 | ||||
Unsecured commercial paper (4) | CSC | — | 750 |
December 31, 2017 | Par Outstanding | Maturity | Weighted Average Interest Rate | Moody’s | Standard & Poor’s | Fitch | ||||
Senior Notes | $ | 4,731 | 2018 - 2028 | 3.01% fixed | A2 | A | A | |||
Short-term borrowings | $ | 15,000 | 2018 | 1.53% fixed | N/A | N/A | N/A |
Issuance Date | Issuance Amount | Maturity Date | Interest Rate | ||
March 2, 2017 | $ | 650 | 2027 | 3.200% | |
December 7, 2017 | $ | 700 | 2028 | 3.200% | |
December 7, 2017 | $ | 800 | 2023 | 2.650% |
Date Issued and Sold | Net Proceeds | |||
Series D | March 7, 2016 | $ | 725 | |
Series E | October 31, 2016 | $ | 591 | |
Series F | October 31, 2017 | $ | 492 |
December 31, 2017 | Less than 1 Year | 1-3 Years | 3-5 Years | More than 5 Years | Total | ||||||||||||||
Credit-related financial instruments (1) | $ | 1,622 | $ | 2,842 | $ | 4,254 | $ | 1,945 | $ | 10,663 | |||||||||
Long-term debt (2) | 1,022 | 954 | 192 | 3,429 | 5,597 | ||||||||||||||
Purchase obligations (3) | 305 | 219 | 48 | 181 | 753 | ||||||||||||||
Leases (4) | 127 | 194 | 120 | 289 | 730 | ||||||||||||||
Total | $ | 3,076 | $ | 4,209 | $ | 4,614 | $ | 5,844 | $ | 17,743 |
December 31, | 2017 | 2016 | |||||||||||||
CSC | Schwab Bank | CSC | Schwab Bank | ||||||||||||
Total stockholders’ equity | $ | 18,525 | $ | 13,224 | $ | 16,421 | $ | 11,726 | |||||||
Less: | |||||||||||||||
Preferred Stock | 2,793 | — | 2,783 | — | |||||||||||
Common Equity Tier 1 Capital before regulatory adjustments | $ | 15,732 | $ | 13,224 | $ | 13,638 | $ | 11,726 | |||||||
Less: | |||||||||||||||
Goodwill, net of associated deferred tax liabilities | $ | 1,191 | $ | 13 | $ | 1,175 | $ | 11 | |||||||
Other intangible assets, net of associated deferred tax liabilities | 61 | — | 52 | — | |||||||||||
Deferred tax assets, net of valuation allowances and deferred tax liabilities | 2 | — | — | — | |||||||||||
AOCI adjustment (1) | (152 | ) | (144 | ) | (163 | ) | (163 | ) | |||||||
Common Equity Tier 1 Capital | $ | 14,630 | $ | 13,355 | $ | 12,574 | $ | 11,878 | |||||||
Tier 1 Capital | $ | 17,423 | $ | 13,355 | $ | 15,357 | $ | 11,878 | |||||||
Total Capital | 17,452 | 13,382 | 15,384 | 11,904 | |||||||||||
Risk-Weighted Assets | 75,866 | 66,519 | 68,179 | 59,915 | |||||||||||
Common Equity Tier 1 Capital/Risk-Weighted Assets | 19.3 | % | 20.1 | % | 18.4 | % | 19.8 | % | |||||||
Tier 1 Capital/Risk-Weighted Assets | 23.0 | % | 20.1 | % | 22.5 | % | 19.8 | % | |||||||
Total Capital/Risk-Weighted Assets | 23.0 | % | 20.1 | % | 22.6 | % | 19.9 | % | |||||||
Tier 1 Leverage Ratio | 7.6 | % | 7.1 | % | 7.2 | % | 7.0 | % |
Year Ended December 31, | 2017 | 2016 | |||||||||||
Cash Paid | Per Share Amount | Cash Paid | Per Share Amount | ||||||||||
Common Stock | $ | 431 | $ | 0.32 | $ | 360 | $ | 0.27 | |||||
Series A Preferred Stock (1) | 28 | 70.00 | 28 | 70.00 | |||||||||
Series B Preferred Stock (2,6) | 29 | 60.00 | 29 | 60.00 | |||||||||
Series C Preferred Stock (2) | 36 | 60.00 | 36 | 60.00 | |||||||||
Series D Preferred Stock (2,3) | 45 | 59.52 | 33 | 43.65 | |||||||||
Series E Preferred Stock (4) | 23 | 3,867.01 | N/A | N/A | |||||||||
Series F Preferred Stock (5) | N/A | N/A | N/A | N/A |
Item 8. | Financial Statements and Supplementary Data |
Note 1. | |||
Note 2. | |||
Note 3. | 64 | ||
Note 4. | |||
Note 5. | 65 | ||
Note 6. | 69 | ||
Note 7. | |||
Note 8. | 74 | ||
Note 9. | 75 | ||
Note 10. | |||
Note 11. | 76 | ||
Note 12. | |||
Note 13. | |||
Note 14. | |||
Note 15. | |||
Note 16. | 86 | ||
Note 17. | 87 | ||
Note 18. | 88 | ||
Note 19. | |||
Note 20. | |||
Note 21. | |||
Note 22. | |||
Note 23. | 97 | ||
Note 24. | 99 | ||
Note 25. | |||
Consolidated Statements of Income | |||||||||||
(In Millions, Except Per Share Amounts) | |||||||||||
Year Ended December 31, | 2017 | 2016 | 2015 | ||||||||
Net Revenues | |||||||||||
Interest revenue | $ | 4,624 | $ | 3,493 | $ | 2,657 | |||||
Interest expense | (342 | ) | (171 | ) | (132 | ) | |||||
Net interest revenue | 4,282 | 3,322 | 2,525 | ||||||||
Asset management and administration fees (1) | 3,392 | 3,055 | 2,650 | ||||||||
Trading revenue | 654 | 825 | 866 | ||||||||
Other | 290 | 271 | 328 | ||||||||
Provision for loan losses | — | 5 | 11 | ||||||||
Total net revenues | 8,618 | 7,478 | 6,380 | ||||||||
Expenses Excluding Interest | |||||||||||
Compensation and benefits | 2,737 | 2,466 | 2,241 | ||||||||
Professional services | 580 | 506 | 459 | ||||||||
Occupancy and equipment | 436 | 398 | 353 | ||||||||
Advertising and market development | 268 | 265 | 249 | ||||||||
Communications | 231 | 237 | 233 | ||||||||
Depreciation and amortization | 269 | 234 | 224 | ||||||||
Regulatory fees and assessments | 179 | 144 | 107 | ||||||||
Other | 268 | 235 | 235 | ||||||||
Total expenses excluding interest | 4,968 | 4,485 | 4,101 | ||||||||
Income before taxes on income | 3,650 | 2,993 | 2,279 | ||||||||
Taxes on income (2) | 1,296 | 1,104 | 832 | ||||||||
Net Income | 2,354 | 1,889 | 1,447 | ||||||||
Preferred stock dividends and other (3) | 174 | 143 | 83 | ||||||||
Net Income Available to Common Stockholders | $ | 2,180 | $ | 1,746 | $ | 1,364 | |||||
Weighted-Average Common Shares Outstanding: | |||||||||||
Basic | 1,339 | 1,324 | 1,315 | ||||||||
Diluted | 1,353 | 1,334 | 1,327 | ||||||||
Earnings Per Common Share: | |||||||||||
Basic | $ | 1.63 | $ | 1.32 | $ | 1.04 | |||||
Diluted | $ | 1.61 | $ | 1.31 | $ | 1.03 | |||||
Dividends Declared Per Common Share | $ | .32 | $ | .27 | $ | .24 |
Consolidated Statements of Comprehensive Income | ||||||||||||
(In Millions) | ||||||||||||
Year Ended December 31, | 2017 | 2016 | 2015 | |||||||||
Net income | $ | 2,354 | $ | 1,889 | $ | 1,447 | ||||||
Other comprehensive income (loss), before tax: | ||||||||||||
Change in net unrealized gain (loss) on available for sale securities: | ||||||||||||
Net unrealized gain (loss) | 13 | (44 | ) | (477 | ) | |||||||
Reclassification of net unrealized loss transferred to held to maturity | 227 | — | — | |||||||||
Other reclassifications included in other revenue | (12 | ) | (4 | ) | — | — | ||||||
Change in net unrealized gain (loss) on held to maturity securities: | ||||||||||||
Reclassification of net unrealized loss transferred from available for sale | (227 | ) | — | — | ||||||||
Amortization of amounts previously recorded upon transfer from available for sale | 31 | — | — | |||||||||
Other | (11 | ) | 1 | — | ||||||||
Other comprehensive income (loss), before tax | 21 | (47 | ) | (477 | ) | |||||||
Income tax effect | (10 | ) | 18 | 178 | ||||||||
Other comprehensive income (loss), net of tax | 11 | (29 | ) | (299 | ) | |||||||
Comprehensive Income | $ | 2,365 | $ | 1,860 | $ | 1,148 |
Consolidated Balance Sheets | |||||||
(In Millions, Except Per Share and Share Amounts) | |||||||
December 31, | 2017 | 2016 | |||||
Assets | |||||||
Cash and cash equivalents | $ | 14,217 | $ | 10,828 | |||
Cash and investments segregated and on deposit for regulatory purposes | |||||||
(including resale agreements of $6,596 and $9,547 at December 31, 2017 | |||||||
and 2016, respectively) | 15,139 | 22,174 | |||||
Receivables from brokers, dealers, and clearing organizations | 649 | 728 | |||||
Receivables from brokerage clients — net | 20,576 | 17,155 | |||||
Other securities owned — at fair value | 539 | 449 | |||||
Available for sale securities | 49,995 | 77,365 | |||||
Held to maturity securities (fair value — $120,373 and $74,444 at December 31, | |||||||
2017 and 2016, respectively) | 120,926 | 75,203 | |||||
Bank loans — net | 16,478 | 15,403 | |||||
Equipment, office facilities, and property — net | 1,471 | 1,299 | |||||
Goodwill | 1,227 | 1,227 | |||||
Intangible assets — net | 108 | 144 | |||||
Other assets | 1,949 | 1,408 | |||||
Total assets | $ | 243,274 | $ | 223,383 | |||
Liabilities and Stockholders’ Equity | |||||||
Bank deposits | $ | 169,656 | $ | 163,454 | |||
Payables to brokers, dealers, and clearing organizations | 1,287 | 2,407 | |||||
Payables to brokerage clients | 31,243 | 35,894 | |||||
Accrued expenses and other liabilities | 2,810 | 2,331 | |||||
Short-term borrowings | 15,000 | — | |||||
Long-term debt | 4,753 | 2,876 | |||||
Total liabilities | 224,749 | 206,962 | |||||
Stockholders’ equity: | |||||||
Preferred stock — $.01 par value per share; aggregate liquidation preference | |||||||
of $2,850 and $2,835 at December 31, 2017 and 2016, respectively | 2,793 | 2,783 | |||||
Common stock — 3 billion shares authorized; $.01 par value per share; | |||||||
1,487,543,446 shares issued | 15 | 15 | |||||
Additional paid-in capital | 4,353 | 4,267 | |||||
Retained earnings | 14,408 | 12,649 | |||||
Treasury stock, at cost — 142,210,890 and 154,793,560 shares | |||||||
at December 31, 2017 and 2016, respectively | (2,892 | ) | (3,130 | ) | |||
Accumulated other comprehensive income | (152 | ) | (163 | ) | |||
Total stockholders’ equity | 18,525 | 16,421 | |||||
Total liabilities and stockholders’ equity | $ | 243,274 | $ | 223,383 |
Consolidated Statements of Cash Flows | |||||||||||
(In Millions) | |||||||||||
Year Ended December 31, | 2017 | 2016 | 2015 | ||||||||
Cash Flows from Operating Activities | |||||||||||
Net income | $ | 2,354 | $ | 1,889 | $ | 1,447 | |||||
Adjustments to reconcile net income to net cash (used for) provided by operating activities: | |||||||||||
Provision for loan losses | — | (5 | ) | (11 | ) | ||||||
Share-based compensation | 153 | 141 | 135 | ||||||||
Depreciation and amortization | 269 | 234 | 224 | ||||||||
Provision (Benefit) for deferred income taxes | 58 | 15 | (7 | ) | |||||||
Premium amortization, net, on available for sale and held to maturity securities | 342 | 266 | 162 | ||||||||
Other | 51 | 9 | (4 | ) | |||||||
Net change in: | |||||||||||
Cash and investments segregated and on deposit for regulatory purposes | 7,035 | (2,576 | ) | 1,183 | |||||||
Receivables from brokers, dealers, and clearing organizations | 74 | (147 | ) | (108 | ) | ||||||
Receivables from brokerage clients | (3,428 | ) | 150 | (1,652 | ) | ||||||
Other securities owned | (90 | ) | 84 | (17 | ) | ||||||
Other assets | (177 | ) | (93 | ) | (98 | ) | |||||
Payables to brokers, dealers, and clearing organizations | (1,148 | ) | (181 | ) | 808 | ||||||
Payables to brokerage clients | (4,651 | ) | 2,709 | (1,120 | ) | ||||||
Accrued expenses and other liabilities | 421 | 167 | 304 | ||||||||
Net cash provided by operating activities | 1,263 | 2,662 | 1,246 | ||||||||
Cash Flows from Investing Activities | |||||||||||
Purchases of available for sale securities | (15,033 | ) | (29,248 | ) | (21,351 | ) | |||||
Proceeds from sales of available for sale securities | 8,617 | 5,537 | 2,424 | ||||||||
Principal payments on available for sale securities | 9,095 | 11,903 | 7,340 | ||||||||
Purchases of held to maturity securities | (32,925 | ) | (31,162 | ) | (19,303 | ) | |||||
Principal payments on held to maturity securities | 11,627 | 5,747 | 3,540 | ||||||||
Net increase in bank loans | (1,071 | ) | (1,103 | ) | (980 | ) | |||||
Purchase of equipment, office facilities, and property | (400 | ) | (346 | ) | (266 | ) | |||||
Purchases of Federal Home Loan Bank stock | (430 | ) | (152 | ) | — | ||||||
Proceeds from sales of Federal Home Loan Bank stock | 106 | 88 | 8 | ||||||||
Other investing activities | (59 | ) | (39 | ) | (35 | ) | |||||
Net cash used for investing activities | (20,473 | ) | (38,775 | ) | (28,623 | ) | |||||
Cash Flows from Financing Activities | |||||||||||
Net change in bank deposits | 6,186 | 33,952 | 26,687 | ||||||||
Net proceeds from short-term borrowings | 15,000 | — | — | ||||||||
Issuance of long-term debt | 2,129 | — | 1,346 | ||||||||
Repayment of long-term debt | (257 | ) | (7 | ) | (357 | ) | |||||
Net proceeds from preferred stock offerings | 492 | 1,316 | 581 | ||||||||
Redemption of preferred stock | (485 | ) | — | — | |||||||
Dividends paid | (592 | ) | (486 | ) | (387 | ) | |||||
Proceeds from stock options exercised and other | 171 | 144 | 90 | ||||||||
Other financing activities | (45 | ) | 44 | 32 | |||||||
Net cash provided by financing activities | 22,599 | 34,963 | 27,992 | ||||||||
Increase (Decrease) in Cash and Cash Equivalents | 3,389 | (1,150 | ) | 615 | |||||||
Cash and Cash Equivalents at Beginning of Year | 10,828 | 11,978 | 11,363 | ||||||||
Cash and Cash Equivalents at End of Year | $ | 14,217 | $ | 10,828 | $ | 11,978 | |||||
Supplemental Cash Flow Information | |||||||||||
Cash paid during the year for: | |||||||||||
Interest | $ | 327 | $ | 160 | $ | 121 | |||||
Income taxes | $ | 1,212 | $ | 991 | $ | 810 | |||||
Non-cash investing activity: | |||||||||||
Securities purchased during the year but settled after year end | $ | 29 | $ | — | $ | — |
Consolidated Statements of Stockholders’ Equity | ||||||||||||||||||||||||||||||
(In Millions) | ||||||||||||||||||||||||||||||
Additional Paid-In Capital | Accumulated Other Comprehensive Income (Loss) | |||||||||||||||||||||||||||||
Preferred Stock | Common Stock | Retained Earnings | Treasury Stock, at cost | |||||||||||||||||||||||||||
Shares | Amount | Total | ||||||||||||||||||||||||||||
Balance at December 31, 2014 | $ | 872 | 1,488 | $ | 15 | $ | 4,050 | $ | 10,198 | $ | (3,497 | ) | $ | 165 | $ | 11,803 | ||||||||||||||
Net income | — | — | — | — | 1,447 | — | — | 1,447 | ||||||||||||||||||||||
Other comprehensive income (loss), net of tax | — | — | — | — | — | — | (299 | ) | (299 | ) | ||||||||||||||||||||
Issuance of preferred stock, net | 587 | — | — | — | — | — | — | 587 | ||||||||||||||||||||||
Dividends declared on preferred stock | — | — | — | — | (69 | ) | — | — | (69 | ) | ||||||||||||||||||||
Dividends declared on common stock | — | — | — | — | (318 | ) | — | — | (318 | ) | ||||||||||||||||||||
Stock option exercises and other | — | — | — | (87 | ) | — | 177 | — | 90 | |||||||||||||||||||||
Share-based compensation and | ||||||||||||||||||||||||||||||
related tax effects | — | — | — | 172 | — | — | — | 172 | ||||||||||||||||||||||
Other | — | — | — | 17 | (5 | ) | (23 | ) | — | (11 | ) | |||||||||||||||||||
Balance at December 31, 2015 | 1,459 | 1,488 | 15 | 4,152 | 11,253 | (3,343 | ) | (134 | ) | 13,402 | ||||||||||||||||||||
Net income | — | — | — | — | 1,889 | — | — | 1,889 | ||||||||||||||||||||||
Other comprehensive income (loss), net of tax | — | — | — | — | — | — | (29 | ) | (29 | ) | ||||||||||||||||||||
Issuance of preferred stock, net | 1,324 | — | — | — | — | — | — | 1,324 | ||||||||||||||||||||||
Dividends declared on preferred stock | — | — | — | — | (126 | ) | — | — | (126 | ) | ||||||||||||||||||||
Dividends declared on common stock | — | — | — | — | (360 | ) | — | — | (360 | ) | ||||||||||||||||||||
Stock option exercises and other | — | — | — | (80 | ) | — | 224 | — | 144 | |||||||||||||||||||||
Share-based compensation and | ||||||||||||||||||||||||||||||
related tax effects | — | — | — | 177 | — | — | — | 177 | ||||||||||||||||||||||
Other | — | — | — | 18 | (7 | ) | (11 | ) | — | — | ||||||||||||||||||||
Balance at December 31, 2016 | 2,783 | 1,488 | 15 | 4,267 | 12,649 | (3,130 | ) | (163 | ) | 16,421 | ||||||||||||||||||||
Net income | — | — | — | — | 2,354 | — | — | 2,354 | ||||||||||||||||||||||
Other comprehensive income (loss), net of tax | — | — | — | — | — | — | 11 | 11 | ||||||||||||||||||||||
Issuance of preferred stock, net | 492 | — | — | — | — | — | — | 492 | ||||||||||||||||||||||
Redemption of preferred stock | (482 | ) | — | — | — | (3 | ) | — | — | (485 | ) | |||||||||||||||||||
Dividends declared on preferred stock | — | — | — | — | (161 | ) | — | — | (161 | ) | ||||||||||||||||||||
Dividends declared on common stock | — | — | — | — | (431 | ) | — | — | (431 | ) | ||||||||||||||||||||
Stock option exercises and other | — | — | — | (88 | ) | — | 259 | — | 171 | |||||||||||||||||||||
Share-based compensation and | ||||||||||||||||||||||||||||||
related tax effects | — | — | — | 144 | — | — | — | 144 | ||||||||||||||||||||||
Other | — | — | — | 30 | — | (21 | ) | — | 9 | |||||||||||||||||||||
Balance at December 31, 2017 | $ | 2,793 | 1,488 | $ | 15 | $ | 4,353 | $ | 14,408 | $ | (2,892 | ) | $ | (152 | ) | $ | 18,525 |
1. | Introduction and Basis of Presentation |
2. | Summary of Significant Accounting Policies |
Equipment and office facilities | 5 to 10 years |
Buildings | 20 to 40 years |
Software | 3 or 5 years (1) |
Leasehold improvements | Lesser of useful life or lease term |
• | Level 1 inputs are quoted prices in active markets as of the measurement date for identical assets or liabilities that the Company has the ability to access. |
• | Level 2 inputs are inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. Level 2 inputs include quoted prices for similar assets and liabilities in active markets, and inputs other than quoted prices that are observable for the asset or liability, such as interest rates, benchmark yields, issuer spreads, new issue data, and collateral performance. |
• | Level 3 inputs are unobservable inputs for the asset or liability, and include situations where there is little, if any, market activity for the asset or liability. |
• | Cash and cash equivalents are short-term in nature and accordingly are recorded at amounts that approximate fair value. |
• | Cash and investments segregated and on deposit for regulatory purposes include cash and securities purchased under resale agreements. Securities purchased under resale agreements are short-term in nature and are backed by collateral that both exceeds the carrying value of the resale agreement and is highly liquid in nature. Accordingly, the carrying values of these financial instruments approximate their fair values. |
• | Receivables from/payables to brokers, dealers, and clearing organizations are short-term in nature, recorded at contractual amounts and historically have been settled at those values. Accordingly, the carrying values of these financial instruments approximate their fair values. |
• | Receivables from/payables to brokerage clients — net are short-term in nature, recorded at contractual amounts and historically have been settled at those values. Accordingly, the carrying values of these financial instruments approximate their fair values. |
• | HTM securities – The fair values of HTM securities are obtained using an independent third-party pricing service similar to investment assets recorded at fair value as discussed above. |
• | Bank loans – The fair values of First Mortgages and HELOCs are estimated based on prices of mortgage-backed securities collateralized by similar types of loans. PALs are non-purpose revolving lines of credit secured by eligible assets; accordingly, the carrying values of these loans approximate their fair values. |
• | Financial instruments included in other assets primarily consist of LIHTC investments, cost method investments and FHLB stock, whose carrying values approximate their fair values. FHLB stock is recorded at par, which approximates its fair value. |
• | Bank deposits – Substantially all bank deposits have no stated maturity and are recorded at the amount payable on demand as of the balance sheet date. The carrying values of these deposits approximate their fair values. |
• | Financial instruments included in accrued expenses and other liabilities consist of drafts payable and certain amounts due under contractual obligations, including unfunded LIHTC commitments. The carrying values of these instruments approximate their fair values. |
• | Short-term borrowings consist of commercial paper, borrowings on Schwab’s uncommitted, unsecured bank credit lines, and funds drawn on Schwab Bank’s secured credit facility with the Federal Home Loan Bank of San Francisco. Due to the short-term nature of these borrowings, carrying value approximates fair value. |
• | Long-term debt – Except for the finance lease obligation, the fair values of long-term debt are estimated using indicative, non-binding quotes from independent brokers. The Company validates indicative prices for its debt through comparison to other independent non-binding quotes. The finance lease obligation is recorded at carrying value, which approximates fair value. |
• | Firm commitments to extend credit – Schwab extends credit to banking clients through HELOCs and PALs. The Company considers the fair value of these unused commitments to not be material because the interest rates earned on these balances are based on floating interest rates that reset monthly. |
Standard | Description | Required Date of Adoption | Effects on the Financial Statements or Other Significant Matters |
ASU 2016-09, “Stock Compensation - Improvements to Employee Share-Based Payment Accounting (Topic 718)” | Requires entities to recognize the income tax effects for the difference between GAAP and federal income tax treatment (i.e., excess tax benefit or deficiency) of share-based awards in the income statement when the awards vest or are settled, rather than recording such effects in additional paid-in capital. Provides entities with an accounting policy election to account for the impact of forfeitures of awards on compensation expense as they occur or continue with the current practice of estimating forfeitures at the grant date to determine the number of awards expected to vest and adjusting that estimate as necessary. | January 1, 2017 | The Company’s taxes on income were reduced by approximately $87 million in 2017. Future effects will depend on the Company’s share price, restricted stock vesting, and the volume of equity incentive options exercised. The Company made an accounting policy election to continue its current practice of estimating forfeitures. |
Standard | Description | Required Date of Adoption | Effects on the Financial Statements or Other Significant Matters |
ASU 2014-09, “Revenue from Contracts with Customers (Topic 606)” and related ASUs | Clarifies that revenue from contracts with clients should be recognized in a manner that depicts the timing of the related transfer of goods or performance of services at an amount that reflects the expected consideration. Adoption allows either full or modified retrospective transition. Full retrospective transition will require a cumulative effect adjustment to retained earnings as of the earliest comparative period presented. Modified retrospective transition will require a cumulative effect adjustment to retained earnings as of the beginning of the reporting period in which the entity first applies the new guidance. | January 1, 2018 | The guidance does not apply to revenue earned from the Company’s loans and securities. Accordingly, net interest revenue will not be impacted. The primary impact for the Company will be the capitalization of sales commissions paid to employees for obtaining new contracts with clients on the consolidated balance sheets. These capitalized costs will result in an asset of $219 million and a related deferred tax liability of $51 million upon adoption. The asset will subsequently be amortized to expense over time as the related revenues are recognized. The Company does not expect this guidance will have a material impact on its EPS. The Company adopted the revenue recognition guidance as of January 1, 2018 using the modified retrospective method. The Company’s implementation work is now substantially complete. |
Standard | Description | Required Date of Adoption | Effects on the Financial Statements or Other Significant Matters |
ASU 2016-01, “Financial Instruments - Overall (Subtopic 825-10)” | Requires: (i) equity investments to be measured at fair value, with changes in fair value recognized in net income, unless the equity method is applied or the equity investments do not have readily determinable fair values in which case a practical alternative may be elected; (ii) use of an exit price when measuring the fair value of financial instruments for disclosures; (iii) separate presentation of financial assets and liabilities by measurement category and form of instrument on the balance sheet or in the accompanying notes. Adoption requires a cumulative effect adjustment to the balance sheet as of the beginning of the year of initial application, except for certain changes that require prospective adoption. | January 1, 2018 | The Company does not expect this guidance will have a material impact on its financial statements, including EPS. |
ASU 2016-02, “Leases (Topic 842)” | Amends the accounting for leases by lessees and lessors. The primary change from the new guidance is the recognition of right-of-use assets and lease liabilities by lessees for those leases classified as operating leases. Additional changes include accounting for lease origination and executory costs, required lessee reassessments during the lease term due to changes in circumstances, and expanded lease disclosures. Adoption requires modified retrospective transition as of the beginning of the earliest comparative period presented in the financial statements in which the entity first applies the new standard. Certain transition relief is permitted if elected by the entity. | January 1, 2019 | The Company does not expect this guidance will have a material impact on its EPS, but it will result in a gross up of the consolidated balance sheets due to recognition of right-of-use assets and lease liabilities based on the present value of remaining operating lease payments (see Note 13 for the undiscounted rental commitments for operating leases). The Company is evaluating its adoption method due to a recently proposed ASU that provides an alternative adoption method. The Company is refining its methodology to estimate the right of use assets and lease liabilities and working on system updates to apply the lease accounting changes. The full population of contracts that may be subject to balance sheet recognition is still being evaluated, but is nearly complete. The Company has further work to perform related to disclosures. |
Standard | Description | Required Date of Adoption | Effects on the Financial Statements or Other Significant Matters |
ASU 2016-13, “Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments” | Provides guidance for recognizing impairment of most debt instruments measured at amortized cost, including loans and HTM debt securities. Requires estimating current expected credit losses (CECL) over the remaining life of an instrument or a portfolio of instruments with similar risk characteristics based on relevant information about past events, current conditions, and reasonable forecasts. The initial estimate of, and the subsequent changes in, CECL will be recognized as credit loss expense through current earnings and will be reflected as an allowance for credit losses offsetting the carrying value of the financial instrument(s) on the balance sheet. Amends the OTTI model for AFS debt securities by requiring the use of an allowance, rather than directly reducing the carrying value of the security, and eliminating consideration of the length of time such security has been in an unrealized loss position as a factor in concluding whether a credit loss exists. Adoption requires a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the entity applies the new guidance except that a prospective transition is required for AFS debt securities for which an OTTI has been recognized prior to the effective date. | January 1, 2020 (early adoption permitted) | The Company is currently evaluating the impact of this guidance on its financial statements, including EPS. Initial implementation work performed to date has focused on evaluating the Company’s impacted assets, including loans and investment securities. The Company has also been evaluating its current data and system capabilities and considering additional data sources and system enhancements. Additional work to be completed includes an in-depth analysis for each impacted asset type, selection of methods, and changes to policies and procedures. |
ASU 2017-08, “Receivables - Nonrefundable Fees and Other Costs (Subtopic 310-20): Premium Amortization on Purchased Callable Debt Securities” | Shortens the amortization period for the premium on certain callable debt securities to the earliest call date. The amendments are applicable to any purchased individual debt security with an explicit and noncontingent call feature with a fixed price on a preset date. ASU 2017-08 does not impact the accounting for callable debt securities held at a discount. Adoption requires modified retrospective transition as of the beginning of the period of adoption through a cumulative-effect adjustment to retained earnings. | January 1, 2019 (early adoption permitted) | The Company is currently evaluating the impact of adopting this guidance on its financial statements, including EPS. |
3. | Receivables from and Payables to Brokerage Clients |
December 31, | 2017 | 2016 | |||||
Receivables | |||||||
Margin loans, net of allowance for doubtful accounts | $ | 18,331 | $ | 15,257 | |||
Other brokerage receivables | 2,245 | 1,898 | |||||
Receivables from brokerage clients — net | $ | 20,576 | $ | 17,155 | |||
Payables | |||||||
Interest-bearing payables | $ | 22,840 | $ | 28,336 | |||
Non-interest-bearing payables | 8,403 | 7,558 | |||||
Payables to brokerage clients | $ | 31,243 | $ | 35,894 |
4. | Other Securities Owned |
December 31, | 2017 | 2016 | |||||
Equity and bond mutual funds | $ | 318 | $ | 272 | |||
Schwab Funds® money market funds | 135 | 108 | |||||
State and municipal debt obligations | 52 | 41 | |||||
Equity, U.S. Government and corporate debt, and other securities | 34 | 28 | |||||
Total other securities owned | $ | 539 | $ | 449 |
December 31, 2017 | Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | |||||||||||
Available for sale securities: | |||||||||||||||
U.S. agency mortgage-backed securities | $ | 20,915 | $ | 53 | $ | 39 | $ | 20,929 | |||||||
U.S. Treasury securities | 9,583 | — | 83 | 9,500 | |||||||||||
Asset-backed securities (1) | 9,019 | 34 | 6 | 9,047 | |||||||||||
Corporate debt securities (2) | 6,154 | 16 | 1 | 6,169 | |||||||||||
Certificates of deposit | 2,040 | 2 | 1 | 2,041 | |||||||||||
U.S. agency notes | 1,914 | — | 8 | 1,906 | |||||||||||
Commercial paper (2) | 313 | — | — | 313 | |||||||||||
Foreign government agency securities | 51 | — | 1 | 50 | |||||||||||
Non-agency commercial mortgage-backed securities | 40 | — | — | 40 | |||||||||||
Total available for sale securities | $ | 50,029 | $ | 105 | $ | 139 | $ | 49,995 | |||||||
Held to maturity securities: | |||||||||||||||
U.S. agency mortgage-backed securities | $ | 101,197 | $ | 290 | $ | 1,034 | $ | 100,453 | |||||||
Asset-backed securities (1) | 12,937 | 127 | 2 | 13,062 | |||||||||||
Corporate debt securities (2) | 4,078 | 13 | 5 | 4,086 | |||||||||||
U.S. state and municipal securities | 1,247 | 57 | — | 1,304 | |||||||||||
Non-agency commercial mortgage-backed securities | 994 | 10 | 5 | 999 | |||||||||||
U.S. Treasury securities | 223 | — | 3 | 220 | |||||||||||
Certificates of deposit | 200 | — | — | 200 | |||||||||||
Foreign government agency securities | 50 | — | 1 | 49 | |||||||||||
Total held to maturity securities | $ | 120,926 | $ | 497 | $ | 1,050 | $ | 120,373 | |||||||
December 31, 2016 | |||||||||||||||
Available for sale securities: | |||||||||||||||
U.S. agency mortgage-backed securities | $ | 33,167 | $ | 120 | $ | 92 | $ | 33,195 | |||||||
U.S. Treasury securities | 8,679 | 3 | 59 | 8,623 | |||||||||||
Asset-backed securities (1) | 20,520 | 29 | 214 | 20,335 | |||||||||||
Corporate debt securities (2) | 9,850 | 20 | 18 | 9,852 | |||||||||||
Certificates of deposit | 2,070 | 2 | 1 | 2,071 | |||||||||||
U.S. agency notes | 1,915 | — | 8 | 1,907 | |||||||||||
Commercial paper (2) | 214 | — | — | 214 | |||||||||||
Non-agency commercial mortgage-backed securities | 45 | — | — | 45 | |||||||||||
U.S. state and municipal securities | 1,167 | 2 | 46 | 1,123 | |||||||||||
Total available for sale securities | $ | 77,627 | $ | 176 | $ | 438 | $ | 77,365 | |||||||
Held to maturity securities: | |||||||||||||||
U.S. agency mortgage-backed securities | $ | 72,439 | $ | 324 | $ | 1,086 | $ | 71,677 | |||||||
Asset-backed securities (1) | 941 | — | — | 941 | |||||||||||
Corporate debt securities (2) | 436 | — | — | 436 | |||||||||||
U.S. state and municipal securities | 68 | 1 | 1 | 68 | |||||||||||
Non-agency commercial mortgage-backed securities | 997 | 11 | 4 | 1,004 | |||||||||||
U.S. Treasury securities | 223 | — | 4 | 219 | |||||||||||
Commercial paper (2) | 99 | — | — | 99 | |||||||||||
Total held to maturity securities | $ | 75,203 | $ | 336 | $ | 1,095 | $ | 74,444 |
Less than 12 months | 12 months or longer | Total | ||||||||||||||||||||
December 31, 2017 | Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | ||||||||||||||||
Available for sale securities: | ||||||||||||||||||||||
U.S. agency mortgage-backed securities | $ | 5,696 | $ | 21 | $ | 2,548 | $ | 18 | $ | 8,244 | $ | 39 | ||||||||||
U.S. Treasury securities | 4,625 | 11 | 4,875 | 72 | 9,500 | 83 | ||||||||||||||||
Asset-backed securities | 904 | 3 | 424 | 3 | 1,328 | 6 | ||||||||||||||||
Corporate debt securities | 736 | 1 | 120 | — | 856 | 1 | ||||||||||||||||
Certificates of deposit | 799 | 1 | — | — | 799 | 1 | ||||||||||||||||
U.S. agency notes | 99 | — | 1,807 | 8 | 1,906 | 8 | ||||||||||||||||
Foreign government agency securities | 50 | 1 | — | — | 50 | 1 | ||||||||||||||||
Total | $ | 12,909 | $ | 38 | $ | 9,774 | $ | 101 | $ | 22,683 | $ | 139 | ||||||||||
Held to maturity securities: | ||||||||||||||||||||||
U.S. agency mortgage-backed securities | $ | 42,102 | $ | 310 | $ | 24,753 | $ | 724 | $ | 66,855 | $ | 1,034 | ||||||||||
Asset-backed securities | 1,124 | 2 | 72 | — | 1,196 | 2 | ||||||||||||||||
Corporate debt securities | 1,078 | 5 | — | — | 1,078 | 5 | ||||||||||||||||
Non-agency commercial mortgage-backed securities | 607 | 5 | — | — | 607 | 5 | ||||||||||||||||
U.S. Treasury securities | 220 | 3 | — | — | 220 | 3 | ||||||||||||||||
Foreign government agency securities | 49 | 1 | — | — | 49 | 1 | ||||||||||||||||
Total | $ | 45,180 | $ | 326 | $ | 24,825 | $ | 724 | $ | 70,005 | $ | 1,050 | ||||||||||
Total securities with unrealized losses (1) | $ | 58,089 | $ | 364 | $ | 34,599 | $ | 825 | $ | 92,688 | $ | 1,189 | ||||||||||
December 31, 2016 | ||||||||||||||||||||||
Available for sale securities: | ||||||||||||||||||||||
U.S. agency mortgage-backed securities | $ | 14,816 | $ | 69 | $ | 2,931 | $ | 23 | $ | 17,747 | $ | 92 | ||||||||||
U.S. Treasury securities | 6,926 | 59 | — | — | 6,926 | 59 | ||||||||||||||||
Asset-backed securities | 1,670 | 13 | 9,237 | 201 | 10,907 | 214 | ||||||||||||||||
Corporate debt securities | 2,407 | 17 | 653 | 1 | 3,060 | 18 | ||||||||||||||||
Certificates of deposit | 474 | — | 100 | 1 | 574 | 1 | ||||||||||||||||
U.S. agency notes | 1,907 | 8 | — | — | 1,907 | 8 | ||||||||||||||||
U.S. state and municipal securities | 956 | 46 | — | — | 956 | 46 | ||||||||||||||||
Total | $ | 29,156 | $ | 212 | $ | 12,921 | $ | 226 | $ | 42,077 | $ | 438 | ||||||||||
Held to maturity securities: | ||||||||||||||||||||||
U.S. agency mortgage-backed securities | $ | 51,361 | $ | 1,086 | $ | — | $ | — | $ | 51,361 | $ | 1,086 | ||||||||||
Non-agency commercial mortgage-backed securities | 591 | 4 | — | — | 591 | 4 | ||||||||||||||||
U.S. Treasury securities | 219 | 4 | — | — | 219 | 4 | ||||||||||||||||
U.S. state and municipal securities | 14 | 1 | — | — | 14 | 1 | ||||||||||||||||
Total | $ | 52,185 | $ | 1,095 | $ | — | $ | — | $ | 52,185 | $ | 1,095 | ||||||||||
Total securities with unrealized losses (2) | $ | 81,341 | $ | 1,307 | $ | 12,921 | $ | 226 | $ | 94,262 | $ | 1,533 |
December 31, 2017 | Within 1 year | After 1 year through 5 years | After 5 years through 10 years | After 10 years | Total | ||||||||||||||
Available for sale securities: | |||||||||||||||||||
U.S. agency mortgage-backed securities (1) | $ | 61 | $ | 2,253 | $ | 8,282 | $ | 10,333 | $ | 20,929 | |||||||||
U.S. Treasury securities | 2,515 | 6,985 | — | — | 9,500 | ||||||||||||||
Asset-backed securities | 251 | 6,924 | 1,261 | 611 | 9,047 | ||||||||||||||
Corporate debt securities | 3,135 | 3,034 | — | — | 6,169 | ||||||||||||||
Certificates of deposit | 575 | 1,466 | — | — | 2,041 | ||||||||||||||
U.S. agency notes | 1,658 | 248 | — | — | 1,906 | ||||||||||||||
Commercial paper | 313 | — | — | — | 313 | ||||||||||||||
Foreign government agency securities | — | 50 | — | — | 50 | ||||||||||||||
Non-agency commercial mortgage-backed securities (1) | — | — | — | 40 | 40 | ||||||||||||||
Total fair value | $ | 8,508 | $ | 20,960 | $ | 9,543 | $ | 10,984 | $ | 49,995 | |||||||||
Total amortized cost | $ | 8,517 | $ | 20,999 | $ | 9,546 | $ | 10,967 | $ | 50,029 | |||||||||
Weighted-average yield (2) | 1.53 | % | 1.63 | % | 1.72 | % | 1.79 | % | 1.66 | % | |||||||||
Held to maturity securities: | |||||||||||||||||||
U.S. agency mortgage-backed securities (1) | $ | 441 | $ | 12,680 | $ | 29,511 | $ | 57,821 | $ | 100,453 | |||||||||
Asset-backed securities | — | 1,003 | 6,245 | 5,814 | 13,062 | ||||||||||||||
Corporate debt securities | 351 | 3,206 | 454 | 75 | 4,086 | ||||||||||||||
U.S. state and municipal securities | — | — | 121 | 1,183 | 1,304 | ||||||||||||||
Non-agency commercial mortgage-backed securities (1) | — | 362 | — | 637 | 999 | ||||||||||||||
U.S. Treasury securities | — | — | 220 | — | 220 | ||||||||||||||
Certificates of deposit | — | 200 | — | — | 200 | ||||||||||||||
Foreign government agency securities | — | 49 | — | — | 49 | ||||||||||||||
Total fair value | $ | 792 | $ | 17,500 | $ | 36,551 | $ | 65,530 | $ | 120,373 | |||||||||
Total amortized cost | $ | 792 | $ | 17,486 | $ | 36,544 | $ | 66,104 | $ | 120,926 | |||||||||
Weighted-average yield (2) | 1.97 | % | 2.45 | % | 2.35 | % | 2.16 | % | 2.26 | % |
Year Ended December 31, | 2017 | 2016 | 2015 | ||||||||
Proceeds | $ | 8,617 | $ | 5,537 | $ | 2,424 | |||||
Gross realized gains | 12 | 4 | 1 | ||||||||
Gross realized losses | — | — | 1 |
6. | Bank Loans and Related Allowance for Loan Losses |
December 31, 2017 | Current | 30-59 days past due | 60-89 days past due | >90 days past due and other nonaccrual loans (3) | Total past due and other nonaccrual loans | Total loans | Allowance for loan losses | Total bank loans - net | |||||||||||||||||||||||
First Mortgages (1,2) | $ | 9,983 | $ | 14 | $ | 2 | $ | 17 | $ | 33 | $ | 10,016 | $ | 16 | $ | 10,000 | |||||||||||||||
HELOCs (1,2) | 1,928 | — | 3 | 12 | 15 | 1,943 | 8 | 1,935 | |||||||||||||||||||||||
Pledged asset lines | 4,361 | 4 | 4 | — | 8 | 4,369 | — | 4,369 | |||||||||||||||||||||||
Other | 176 | — | — | — | — | 176 | 2 | 174 | |||||||||||||||||||||||
Total bank loans | $ | 16,448 | $ | 18 | $ | 9 | $ | 29 | $ | 56 | $ | 16,504 | $ | 26 | $ | 16,478 | |||||||||||||||
December 31, 2016 | |||||||||||||||||||||||||||||||
First Mortgages (1,2) | $ | 9,100 | $ | 15 | $ | 3 | $ | 16 | $ | 34 | $ | 9,134 | $ | 17 | $ | 9,117 | |||||||||||||||
HELOCs (1,2) | 2,336 | 2 | 2 | 10 | 14 | 2,350 | 8 | 2,342 | |||||||||||||||||||||||
Pledged asset lines | 3,846 | 4 | 1 | — | 5 | 3,851 | — | 3,851 | |||||||||||||||||||||||
Other | 94 | — | — | — | — | 94 | 1 | 93 | |||||||||||||||||||||||
Total bank loans | $ | 15,376 | $ | 21 | $ | 6 | $ | 26 | $ | 53 | $ | 15,429 | $ | 26 | $ | 15,403 |
December 31, 2017 | December 31, 2016 | December 31, 2015 | |||||||||||||||||||||||||||||||||||||||||
First Mortgages | HELOCs | Other | Total (1) | First Mortgages | HELOCs | Other | Total (1) | First Mortgages | HELOCs | Total (1) | |||||||||||||||||||||||||||||||||
Balance at beginning of year | $ | 17 | $ | 8 | $ | 1 | $ | 26 | $ | 20 | $ | 11 | $ | — | $ | 31 | $ | 29 | $ | 13 | $ | 42 | |||||||||||||||||||||
Charge-offs | (2 | ) | (1 | ) | — | (3 | ) | (1 | ) | (1 | ) | — | (2 | ) | (1 | ) | (2 | ) | (3 | ) | |||||||||||||||||||||||
Recoveries | 1 | 1 | 1 | 3 | 1 | 1 | — | 2 | 1 | 2 | 3 | ||||||||||||||||||||||||||||||||
Provision for loan losses | — | — | — | — | (3 | ) | (3 | ) | 1 | (5 | ) | (9 | ) | (2 | ) | (11 | ) | ||||||||||||||||||||||||||
Balance at end of year | $ | 16 | $ | 8 | $ | 2 | $ | 26 | $ | 17 | $ | 8 | $ | 1 | $ | 26 | $ | 20 | $ | 11 | $ | 31 |
December 31, | 2017 | 2016 | |||||
Nonaccrual loans (1) | $ | 28 | $ | 26 | |||
Other real estate owned (2) | 3 | 5 | |||||
Total nonperforming assets | 31 | 31 | |||||
Troubled debt restructurings | 11 | 14 | |||||
Total impaired assets | $ | 42 | $ | 45 |
• | Year of origination; |
• | Borrower FICO scores at origination (Origination FICO); |
• | Updated borrower FICO scores (Updated FICO); |
• | Loan-to-value ratios at origination (Origination LTV); and |
• | Estimated current LTV. |
December 31, 2017 | Balance | Weighted Average Updated FICO | Utilization Rate (1) | Percent of Loans that are on Nonaccrual Status | ||||||||
First Mortgages: | ||||||||||||
Estimated Current LTV | ||||||||||||
<70% | $ | 9,046 | 775 | N/A | 0.09 | % | ||||||
>70% – <90% | 961 | 769 | N/A | 0.46 | % | |||||||
>90% – <100% | 5 | 714 | N/A | 10.49 | % | |||||||
>100% | 4 | 713 | N/A | 6.23 | % | |||||||
Total | $ | 10,016 | 775 | N/A | 0.14 | % | ||||||
HELOCs: | ||||||||||||
Estimated Current LTV (2) | ||||||||||||
<70% | $ | 1,773 | 772 | 32 | % | 0.18 | % | |||||
>70% – <90% | 148 | 755 | 47 | % | 0.84 | % | ||||||
>90% – <100% | 14 | 742 | 64 | % | 2.85 | % | ||||||
>100% | 8 | 718 | 72 | % | 4.91 | % | ||||||
Total | $ | 1,943 | 770 | 33 | % | 0.27 | % | |||||
Pledged asset lines: | ||||||||||||
Weighted Average LTV (2) | ||||||||||||
= 70% | $ | 4,369 | 765 | 41 | % | — | ||||||
December 31, 2016 | Balance | Weighted Average Updated FICO | Utilization Rate (1) | Percent of Loans that are on Nonaccrual Status | ||||||||
First Mortgages: | ||||||||||||
Estimated Current LTV | ||||||||||||
<70% | $ | 8,350 | 774 | N/A | 0.04 | % | ||||||
>70% – <90% | 743 | 768 | N/A | 0.35 | % | |||||||
>90% – <100% | 21 | 747 | N/A | 2.08 | % | |||||||
>100% | 20 | 709 | N/A | 14.50 | % | |||||||
Total | $ | 9,134 | 773 | N/A | 0.10 | % | ||||||
HELOCs: | ||||||||||||
Estimated Current LTV (2) | ||||||||||||
<70% | $ | 2,070 | 771 | 35 | % | 0.12 | % | |||||
>70% – <90% | 234 | 757 | 50 | % | 0.40 | % | ||||||
>90% – <100% | 29 | 747 | 66 | % | 1.74 | % | ||||||
>100% | 17 | 728 | 70 | % | 3.73 | % | ||||||
Total | $ | 2,350 | 769 | 36 | % | 0.20 | % | |||||
Pledged asset lines: | ||||||||||||
Weighted Average LTV (2) | ||||||||||||
= 70% | $ | 3,851 | 763 | 46 | % | — |
December 31, 2017 | First Mortgages | HELOCs | |||||
Year of origination | |||||||
Pre-2013 | $ | 1,478 | $ | 1,349 | |||
2013 | 1,326 | 147 | |||||
2014 | 530 | 116 | |||||
2015 | 1,218 | 128 | |||||
2016 | 2,886 | 111 | |||||
2017 | 2,578 | 92 | |||||
Total | $ | 10,016 | $ | 1,943 | |||
Origination FICO | |||||||
<620 | $ | 6 | $ | 1 | |||
620 – 679 | 89 | 10 | |||||
680 – 739 | 1,569 | 365 | |||||
>740 | 8,352 | 1,567 | |||||
Total | $ | 10,016 | $ | 1,943 | |||
Origination LTV | |||||||
<70% | $ | 7,569 | $ | 1,360 | |||
>70% – <90% | 2,441 | 574 | |||||
>90% – <100% | 6 | 9 | |||||
Total | $ | 10,016 | $ | 1,943 | |||
December 31, 2016 | First Mortgages | HELOCs | |||||
Year of origination | |||||||
Pre-2013 | $ | 2,136 | $ | 1,765 | |||
2013 | 1,746 | 193 | |||||
2014 | 685 | 152 | |||||
2015 | 1,458 | 146 | |||||
2016 | 3,109 | 94 | |||||
Total | $ | 9,134 | $ | 2,350 | |||
Origination FICO | |||||||
<620 | $ | 8 | $ | — | |||
620 – 679 | 92 | 13 | |||||
680 – 739 | 1,427 | 432 | |||||
>740 | 7,607 | 1,905 | |||||
Total | $ | 9,134 | $ | 2,350 | |||
Origination LTV | |||||||
<70% | $ | 6,865 | $ | 1,628 | |||
>70% – <90% | 2,260 | 709 | |||||
>90% – <100% | 9 | 13 | |||||
Total | $ | 9,134 | $ | 2,350 |
December 31, 2017 | Balance | ||
Converted to amortizing loan by period end | $ | 437 | |
Within 1 year | 559 | ||
> 1 year – 3 years | 204 | ||
> 3 years – 5 years | 149 | ||
> 5 years | 594 | ||
Total | $ | 1,943 |
7. | Equipment, Office Facilities, and Property |
December 31, | 2017 | 2016 | |||||
Software | $ | 1,490 | $ | 1,335 | |||
Buildings | 810 | 807 | |||||
Leasehold improvements | 357 | 342 | |||||
Information technology equipment | 326 | 299 | |||||
Furniture and equipment | 193 | 190 | |||||
Land | 167 | 168 | |||||
Construction in progress | 142 | 26 | |||||
Telecommunications equipment | 66 | 67 | |||||
Total equipment, office facilities, and property | 3,551 | 3,234 | |||||
Accumulated depreciation and amortization | (2,080 | ) | (1,935 | ) | |||
Total equipment, office facilities, and property — net | $ | 1,471 | $ | 1,299 |
8. | Intangible Assets and Goodwill |
December 31, 2017 | December 31, 2016 | |||||||||||||||||||||
Gross Carrying Value | Accumulated Amortization | Net Carrying Value | Gross Carrying Value | Accumulated Amortization | Net Carrying Value | |||||||||||||||||
Client relationships | $ | 274 | $ | 189 | $ | 85 | $ | 274 | $ | 169 | $ | 105 | ||||||||||
Technology | 89 | 66 | 23 | 89 | 56 | 33 | ||||||||||||||||
Trade name | 15 | 15 | — | 16 | 10 | 6 | ||||||||||||||||
Total intangible assets | $ | 378 | $ | 270 | $ | 108 | $ | 379 | $ | 235 | $ | 144 |
2018 | $ | 30 | |
2019 | 27 | ||
2020 | 22 | ||
2021 | 15 | ||
2022 | 11 | ||
Thereafter | 2 | ||
Total | $ | 107 |
Investor Services | Advisor Services | Total | |||||||||
Balance at December 31, 2015 | $ | 1,096 | $ | 131 | $ | 1,227 | |||||
Goodwill acquired and other changes during the period | — | — | — | ||||||||
Balance at December 31, 2016 | 1,096 | 131 | 1,227 | ||||||||
Goodwill acquired and other changes during the period | — | — | — | ||||||||
Balance at December 31, 2017 | $ | 1,096 | $ | 131 | $ | 1,227 |
December 31, | 2017 | 2016 | |||||
Accounts receivable (1) | $ | 461 | $ | 451 | |||
Interest and dividends receivable | 413 | 325 | |||||
FHLB stock (2) | 405 | 81 | |||||
Other investments (3) | 376 | 243 | |||||
Prepaid expenses | 126 | 90 | |||||
Deferred tax asset — net | 76 | 143 | |||||
Other | 92 | 75 | |||||
Total other assets | $ | 1,949 | $ | 1,408 |
10. | Variable Interest Entities |
December 31, 2017 | December 31, 2016 | ||||||||||||||||||||||
Aggregate assets | Aggregate liabilities | Maximum exposure to loss | Aggregate assets | Aggregate liabilities | Maximum exposure to loss | ||||||||||||||||||
LIHTC Investments (1) | $ | 304 | $ | 203 | $ | 304 | $ | 189 | $ | 135 | $ | 189 | |||||||||||
Other CRA Investments (2) | 69 | — | 125 | 60 | — | 80 | |||||||||||||||||
Total | $ | 373 | $ | 203 | $ | 429 | $ | 249 | $ | 135 | $ | 269 |
11. | Bank Deposits |
December 31, | 2017 | 2016 | |||||
Interest-bearing deposits: | |||||||
Deposits swept from brokerage accounts | $ | 148,212 | $ | 141,146 | |||
Checking | 13,388 | 13,842 | |||||
Savings and other | 7,264 | 7,792 | |||||
Total interest-bearing deposits | 168,864 | 162,780 | |||||
Non-interest-bearing deposits | 792 | 674 | |||||
Total bank deposits | $ | 169,656 | $ | 163,454 |
Date of | Principal Amount Outstanding | ||||||||
Issuance | 2017 | 2016 | |||||||
Fixed-Rate Senior Notes: | |||||||||
1.500% due March 10, 2018 (1) | 03/10/15 | $ | 625 | $ | 625 | ||||
2.200% due July 25, 2018 | 07/25/13 | 275 | 275 | ||||||
4.450% due July 22, 2020 | 07/22/10 | 700 | 700 | ||||||
3.225% due September 1, 2022 | 08/29/12 | 256 | 256 | ||||||
2.650% due January 25, 2023 | 12/07/17 | 800 | — | ||||||
3.000% due March 10, 2025 | 03/10/15 | 375 | 375 | ||||||
3.450% due February 13, 2026 | 11/13/15 | 350 | 350 | ||||||
3.200% due March 2, 2027 | 03/02/17 | 650 | — | ||||||
3.200% due January 25, 2028 | 12/07/17 | 700 | — | ||||||
Total fixed-rate senior notes | 4,731 | 2,581 | |||||||
6.375% Medium-Term Notes | — | 250 | |||||||
5.450% Finance lease obligation (2) | 06/04/04 | 61 | 68 | ||||||
Unamortized discount, net | (14 | ) | (13 | ) | |||||
Debt issuance costs | (25 | ) | (10 | ) | |||||
Total long-term debt | $ | 4,753 | $ | 2,876 |
2018 | $ | 908 | |
2019 | 8 | ||
2020 | 709 | ||
2021 | 9 | ||
2022 | 266 | ||
Thereafter | 2,892 | ||
Total maturities | 4,792 | ||
Unamortized discount, net | (14 | ) | |
Debt issuance costs | (25 | ) | |
Total long-term debt | $ | 4,753 |
13. | Commitments and Contingencies |
December 31, | 2017 | 2016 | ||||
Commitments to extend credit related to unused HELOCs, PALs, and other lines of credit | $ | 10,060 | $ | 8,445 | ||
Commitments to purchase First Mortgage loans | 308 | 466 | ||||
Total | $ | 10,368 | $ | 8,911 |
December 31, 2017 | Operating Leases | Subleases | Net | ||||||
2018 | $ | 137 | $ | 6 | $ | 131 | |||
2019 | 119 | 4 | 115 | ||||||
2020 | 109 | 4 | 105 | ||||||
2021 | 86 | 4 | 82 | ||||||
2022 | 68 | 2 | 66 | ||||||
Thereafter | 310 | 1 | 309 | ||||||
Total | $ | 829 | $ | 21 | $ | 808 |
December 31, 2017 | |||
2018 | $ | 305 | |
2019 | 148 | ||
2020 | 71 | ||
2021 | 26 | ||
2022 | 22 | ||
Thereafter | 181 | ||
Total | $ | 753 |
14. | Financial Instruments Subject to Off-Balance Sheet Credit Risk |
Gross Amounts Not Offset in the Consolidated Balance Sheets | |||||||||||||||||||
Gross Assets/ Liabilities | Gross Amounts Offset in the Consolidated Balance Sheets | Net Amounts Presented in the Consolidated Balance Sheets | Counterparty Offsetting | Collateral | Net Amount | ||||||||||||||
December 31, 2017 | |||||||||||||||||||
Assets: | |||||||||||||||||||
Resale agreements (1) | $ | 6,596 | $ | — | $ | 6,596 | $ | — | $ | (6,596 | ) | (2) | $ | — | |||||
Securities borrowed (3) | 222 | — | 222 | (199 | ) | (22 | ) | 1 | |||||||||||
Total | $ | 6,818 | $ | — | $ | 6,818 | $ | (199 | ) | $ | (6,618 | ) | $ | 1 | |||||
Liabilities: | |||||||||||||||||||
Securities loaned (4,5) | $ | 966 | $ | — | $ | 966 | $ | (199 | ) | $ | (670 | ) | $ | 97 | |||||
Total | $ | 966 | $ | — | $ | 966 | $ | (199 | ) | $ | (670 | ) | $ | 97 | |||||
December 31, 2016 | |||||||||||||||||||
Assets: | |||||||||||||||||||
Resale agreements (1) | $ | 9,547 | $ | — | $ | 9,547 | $ | — | $ | (9,547 | ) | (2) | $ | — | |||||
Securities borrowed (3) | 393 | — | 393 | (200 | ) | (189 | ) | 4 | |||||||||||
Total | $ | 9,940 | $ | — | $ | 9,940 | $ | (200 | ) | $ | (9,736 | ) | $ | 4 | |||||
Liabilities: | |||||||||||||||||||
Securities loaned (4,5) | $ | 1,996 | $ | — | $ | 1,996 | $ | (200 | ) | $ | (1,660 | ) | $ | 136 | |||||
Total | $ | 1,996 | $ | — | $ | 1,996 | $ | (200 | ) | $ | (1,660 | ) | $ | 136 |
December 31, | 2017 | 2016 | ||||
Fair value of client securities available to be pledged | $ | 25,905 | $ | 21,516 | ||
Fair value of client securities pledged for: | ||||||
Fulfillment of requirements with the Options Clearing Corporation (1) | 2,280 | 1,519 | ||||
Fulfillment of client short sales | 2,011 | 2,048 | ||||
Securities lending to other broker-dealers | 784 | 1,626 | ||||
Total collateral pledged | $ | 5,075 | $ | 5,193 |
(1) | Client securities pledged to fulfill client margin requirements for open option contracts established with the Options Clearing Corporation. |
December 31, 2017 | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Balance at Fair Value | ||||||||
Cash equivalents: | ||||||||||||
Money market funds | $ | 2,727 | $ | — | $ | — | $ | 2,727 | ||||
Total cash equivalents | 2,727 | — | — | 2,727 | ||||||||
Investments segregated and on deposit for regulatory purposes: | ||||||||||||
Certificates of deposit | — | 2,198 | — | 2,198 | ||||||||
U.S. Government securities | — | 3,658 | — | 3,658 | ||||||||
Total investments segregated and on deposit for regulatory purposes | — | 5,856 | — | 5,856 | ||||||||
Other securities owned: | ||||||||||||
Equity and bond mutual funds | 318 | — | — | 318 | ||||||||
Schwab Funds® money market funds | 135 | — | — | 135 | ||||||||
State and municipal debt obligations | — | 52 | — | 52 | ||||||||
Equity, U.S. Government and corporate debt, and other securities | 2 | 32 | — | 34 | ||||||||
Total other securities owned | 455 | 84 | — | 539 | ||||||||
Available for sale securities: | ||||||||||||
U.S. agency mortgage-backed securities | — | 20,929 | — | 20,929 | ||||||||
U.S. Treasury securities | — | 9,500 | — | 9,500 | ||||||||
Asset-backed securities | — | 9,047 | — | 9,047 | ||||||||
Corporate debt securities | — | 6,169 | — | 6,169 | ||||||||
Certificates of deposit | — | 2,041 | — | 2,041 | ||||||||
U.S. agency notes | — | 1,906 | — | 1,906 | ||||||||
Commercial paper | — | 313 | — | 313 | ||||||||
Foreign government agency securities | — | 50 | — | 50 | ||||||||
Non-agency commercial mortgage-backed securities | — | 40 | — | 40 | ||||||||
Total available for sale securities | — | 49,995 | — | 49,995 | ||||||||
Total | $ | 3,182 | $ | 55,935 | $ | — | $ | 59,117 |
December 31, 2016 | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Balance at Fair Value | ||||||||
Cash equivalents: | ||||||||||||
Money market funds | $ | 1,514 | $ | — | $ | — | $ | 1,514 | ||||
Total cash equivalents | 1,514 | — | — | 1,514 | ||||||||
Investments segregated and on deposit for regulatory purposes: | ||||||||||||
Certificates of deposit | — | 2,525 | — | 2,525 | ||||||||
U.S. Government securities | — | 6,111 | — | 6,111 | ||||||||
Total investments segregated and on deposit for regulatory purposes | — | 8,636 | — | 8,636 | ||||||||
Other securities owned: | ||||||||||||
Equity and bond mutual funds | 272 | — | — | 272 | ||||||||
Schwab Funds® money market funds | 108 | — | — | 108 | ||||||||
State and municipal debt obligations | — | 41 | — | 41 | ||||||||
Equity, U.S. Government and corporate debt, and other securities | 2 | 26 | — | 28 | ||||||||
Total other securities owned | 382 | 67 | — | 449 | ||||||||
Available for sale securities: | ||||||||||||
U.S. agency mortgage-backed securities | — | 33,195 | — | 33,195 | ||||||||
U.S. Treasury securities | — | 8,623 | — | 8,623 | ||||||||
Asset-backed securities | — | 20,335 | — | 20,335 | ||||||||
Corporate debt securities | — | 9,852 | — | 9,852 | ||||||||
Certificates of deposit | — | 2,071 | — | 2,071 | ||||||||
U.S. agency notes | — | 1,907 | — | 1,907 | ||||||||
Commercial paper | — | 214 | — | 214 | ||||||||
U.S. state and municipal securities | — | 1,123 | — | 1,123 | ||||||||
Non-agency commercial mortgage-backed securities | — | 45 | — | 45 | ||||||||
Total available for sale securities | — | 77,365 | — | 77,365 | ||||||||
Total | $ | 1,896 | $ | 86,068 | $ | — | $ | 87,964 |
December 31, 2017 | Carrying Amount | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Balance at Fair Value | ||||||||||
Assets: | |||||||||||||||
Cash and cash equivalents | $ | 11,490 | $ | — | $ | 11,490 | $ | — | $ | 11,490 | |||||
Cash and investments segregated and on deposit for regulatory purposes | 9,277 | — | 9,277 | — | 9,277 | ||||||||||
Receivables from brokers, dealers, and clearing organizations | 649 | — | 649 | — | 649 | ||||||||||
Receivables from brokerage clients — net | 20,568 | — | 20,568 | — | 20,568 | ||||||||||
Held to maturity securities: | |||||||||||||||
U.S. agency mortgage-backed securities | 101,197 | — | 100,453 | — | 100,453 | ||||||||||
Asset-backed securities | 12,937 | — | 13,062 | — | 13,062 | ||||||||||
Corporate debt securities | 4,078 | — | 4,086 | — | 4,086 | ||||||||||
U.S. state and municipal securities | 1,247 | — | 1,304 | — | 1,304 | ||||||||||
Non-agency commercial mortgage-backed securities | 994 | — | 999 | — | 999 | ||||||||||
U.S. Treasury securities | 223 | — | 220 | — | 220 | ||||||||||
Certificates of deposit | 200 | — | 200 | — | 200 | ||||||||||
Foreign government agency securities | 50 | — | 49 | — | 49 | ||||||||||
Total held to maturity securities | 120,926 | — | 120,373 | — | 120,373 | ||||||||||
Bank loans — net: | |||||||||||||||
First Mortgages | 10,000 | — | 9,917 | — | 9,917 | ||||||||||
HELOCs | 1,935 | — | 2,025 | — | 2,025 | ||||||||||
Pledged asset lines | 4,369 | — | 4,369 | — | 4,369 | ||||||||||
Other | 174 | — | 174 | — | 174 | ||||||||||
Total bank loans — net | 16,478 | — | 16,485 | — | 16,485 | ||||||||||
Other assets | 781 | — | 781 | — | 781 | ||||||||||
Total | $ | 180,169 | $ | — | $ | 179,623 | $ | — | $ | 179,623 | |||||
Liabilities: | |||||||||||||||
Bank deposits | $ | 169,656 | $ | — | $ | 169,656 | $ | — | $ | 169,656 | |||||
Payables to brokers, dealers, and clearing organizations | 1,287 | — | 1,287 | — | 1,287 | ||||||||||
Payables to brokerage clients | 31,243 | — | 31,243 | — | 31,243 | ||||||||||
Accrued expenses and other liabilities | 1,463 | — | 1,463 | — | 1,463 | ||||||||||
Short-term borrowings | 15,000 | — | 15,000 | — | 15,000 | ||||||||||
Long-term debt | 4,753 | — | 4,811 | — | 4,811 | ||||||||||
Total | $ | 223,402 | $ | — | $ | 223,460 | $ | — | $ | 223,460 |
December 31, 2016 | Carrying Amount | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Balance at Fair Value | ||||||||||
Assets: | |||||||||||||||
Cash and cash equivalents | $ | 9,314 | $ | — | $ | 9,314 | $ | — | $ | 9,314 | |||||
Cash and investments segregated and on deposit for regulatory purposes | 13,533 | — | 13,533 | — | 13,533 | ||||||||||
Receivables from brokers, dealers, and clearing organizations | 728 | — | 728 | — | 728 | ||||||||||
Receivables from brokerage clients — net | 17,151 | — | 17,151 | — | 17,151 | ||||||||||
Held to maturity securities: | |||||||||||||||
U.S. agency mortgage-backed securities | 72,439 | — | 71,677 | — | 71,677 | ||||||||||
Asset-backed securities | 941 | — | 941 | — | 941 | ||||||||||
Corporate debt securities | 436 | — | 436 | — | 436 | ||||||||||
U.S. state and municipal securities | 68 | — | 68 | — | 68 | ||||||||||
Non-agency commercial mortgage-backed securities | 997 | — | 1,004 | — | 1,004 | ||||||||||
U.S. Treasury securities | 223 | — | 219 | — | 219 | ||||||||||
Commercial paper | 99 | — | 99 | — | 99 | ||||||||||
Total held to maturity securities | 75,203 | — | 74,444 | — | 74,444 | ||||||||||
Bank loans — net: | |||||||||||||||
First Mortgages | 9,117 | — | 9,064 | — | 9,064 | ||||||||||
HELOCs | 2,342 | — | 2,458 | — | 2,458 | ||||||||||
Pledged asset lines | 3,851 | — | 3,851 | — | 3,851 | ||||||||||
Other | 93 | — | 94 | — | 94 | ||||||||||
Total bank loans — net | 15,403 | — | 15,467 | — | 15,467 | ||||||||||
Other assets | 328 | — | 328 | — | 328 | ||||||||||
Total | $ | 131,660 | $ | — | $ | 130,965 | $ | — | $ | 130,965 | |||||
Liabilities: | |||||||||||||||
Bank deposits | $ | 163,454 | $ | — | $ | 163,454 | $ | — | $ | 163,454 | |||||
Payables to brokers, dealers, and clearing organizations | 2,407 | — | 2,407 | — | 2,407 | ||||||||||
Payables to brokerage clients | 35,894 | — | 35,894 | — | 35,894 | ||||||||||
Accrued expenses and other liabilities | 1,169 | — | 1,169 | — | 1,169 | ||||||||||
Long-term debt | 2,876 | — | 2,941 | — | 2,941 | ||||||||||
Total | $ | 205,800 | $ | — | $ | 205,865 | $ | — | $ | 205,865 |
Dividend Rate in Effect at December 31, 2017 | Date at Which Dividend Rate Becomes Floating | Floating Annual Rate of Three-month LIBOR plus: | |||||||||||||||||||||||
Shares Issued and Outstanding (In thousands) at December 31,(1) | Liquidation Preference Per Share | Carrying Value at December 31, | Earliest Redemption Date | ||||||||||||||||||||||
2017 | 2016 | 2017 | 2016 | Issue Date | |||||||||||||||||||||
Fixed-rate: | |||||||||||||||||||||||||
Series B (2) | — | 485 | 1,000 | $ | — | $ | 482 | 06/06/12 | — | — | N/A | N/A | |||||||||||||
Series C | 600 | 600 | 1,000 | 585 | 585 | 08/03/15 | 6.000 | % | 12/01/20 | N/A | N/A | ||||||||||||||
Series D | 750 | 750 | 1,000 | 728 | 728 | 03/07/16 | 5.950 | % | 06/01/21 | N/A | N/A | ||||||||||||||
Fixed-to-floating-rate: | |||||||||||||||||||||||||
Series A | 400 | 400 | 1,000 | 397 | 397 | 01/26/12 | 7.000 | % | 02/01/22 | 02/01/22 | 4.820 | % | |||||||||||||
Series E | 6 | 6 | 100,000 | 591 | 591 | 10/31/16 | 4.625 | % | 03/01/22 | 03/01/22 | 3.315 | % | |||||||||||||
Series F | 5 | — | 100,000 | 492 | — | 10/31/17 | 5.000 | % | 12/01/27 | 12/01/27 | 2.575 | % | |||||||||||||
Total Preferred Stock | 1,761 | 2,241 | $ | 2,793 | $ | 2,783 |
17. | Accumulated Other Comprehensive Income |
Year Ended December 31, | 2017 | 2016 | 2015 | ||||||||||||||||||||||||||||||||
Before tax | Tax effect | Net of tax | Before tax | Tax effect | Net of tax | Before tax | Tax effect | Net of tax | |||||||||||||||||||||||||||
Change in net unrealized gain (loss) on available for sale securities: | |||||||||||||||||||||||||||||||||||
Net unrealized gain (loss) | $ | 13 | $ | (7 | ) | $ | 6 | $ | (44 | ) | $ | 16 | $ | (28 | ) | $ | (477 | ) | $ | 178 | $ | (299 | ) | ||||||||||||
Reclassification of net unrealized loss on securities transferred to held to maturity (1) | 227 | (85 | ) | 142 | — | — | — | — | — | — | |||||||||||||||||||||||||
Other reclassifications included in other revenue | (12 | ) | 4 | (8 | ) | (4 | ) | 2 | (2 | ) | — | — | — | ||||||||||||||||||||||
Change in net unrealized gain (loss) on held to maturity securities: | |||||||||||||||||||||||||||||||||||
Reclassification of net unrealized loss on securities transferred from available for sale (1) | (227 | ) | 85 | (142 | ) | — | — | — | — | — | — | ||||||||||||||||||||||||
Amortization of amounts previously recorded upon transfer from available for sale | 31 | (11 | ) | 20 | — | — | — | — | — | — | |||||||||||||||||||||||||
Other | (11 | ) | 4 | (7 | ) | 1 | — | 1 | — | — | — | ||||||||||||||||||||||||
Other comprehensive income (loss) | $ | 21 | $ | (10 | ) | $ | 11 | $ | (47 | ) | $ | 18 | $ | (29 | ) | $ | (477 | ) | $ | 178 | $ | (299 | ) |
Total Accumulated Other Comprehensive Income | |||
Balance at December 31, 2014 | $ | 165 | |
Net unrealized gain (loss) on available for sale securities | (299 | ) | |
Balance at December 31, 2015 | $ | (134 | ) |
Net unrealized gain (loss) on available for sale securities | (30 | ) | |
Other | $ | 1 | |
Balance at December 31, 2016 | $ | (163 | ) |
Available for sale securities: | |||
Net unrealized gain (loss) | 6 | ||
Reclassification of net unrealized loss on securities transferred to held to maturity | 142 | ||
Other reclassifications included in other revenue | (8 | ) | |
Held to maturity securities: | |||
Reclassification of net unrealized loss on securities transferred from available for sale | (142 | ) | |
Amortization of amounts previously recorded upon transfer to held to maturity from available for sale | 20 | ||
Other | (7 | ) | |
Balance at December 31, 2017 | $ | (152 | ) |
18. | Employee Incentive, Retirement, Deferred Compensation, and Career Achievement Plans |
Year Ended December 31, | 2017 | 2016 | 2015 | ||||||||
Stock option expense | $ | 50 | $ | 45 | $ | 46 | |||||
Restricted stock unit expense | 94 | 89 | 83 | ||||||||
Employee stock purchase plan expense | 9 | 7 | 6 | ||||||||
Total share-based compensation expense | $ | 153 | $ | 141 | $ | 135 | |||||
Income tax benefit on share-based compensation expense (1) | $ | (57 | ) | $ | (53 | ) | $ | (51 | ) |
Number of Options (In millions) | Weighted- Average Exercise Price per Share | Weighted- Average Remaining Contractual Life (in years) | Aggregate Intrinsic Value | |||||||||
Outstanding at December 31, 2016 | 37 | $ | 22.12 | 6.50 | $ | 649 | ||||||
Granted | 4 | 43.71 | ||||||||||
Exercised | (9 | ) | 18.20 | |||||||||
Forfeited | — | 31.02 | ||||||||||
Expired | — | 24.82 | ||||||||||
Outstanding at December 31, 2017 | 32 | $ | 26.16 | 6.38 | $ | 814 | ||||||
Vested and expected to vest at December 31, 2017 | 31 | $ | 26.02 | 6.35 | $ | 811 | ||||||
Vested and exercisable at December 31, 2017 | 20 | $ | 20.82 | 5.02 | $ | 612 |
Year Ended December 31, | 2017 | 2016 | 2015 | ||||||||
Weighted-average fair value of options granted per share | $ | 13.04 | $ | 8.73 | $ | 8.56 | |||||
Cash received from options exercised | 171 | 144 | 90 | ||||||||
Tax benefit realized on options exercised | 70 | 38 | 22 | ||||||||
Aggregate intrinsic value of options exercised | 241 | 149 | 90 |
Year Ended December 31, | 2017 | 2016 | 2015 | |||||
Weighted-average expected dividend yield | 1.06 | % | 1.22 | % | 1.22 | % | ||
Weighted-average expected volatility | 34 | % | 30 | % | 28 | % | ||
Weighted-average risk-free interest rate | 2.1 | % | 1.8 | % | 2.2 | % | ||
Expected life (in years) | 4.1 - 5.3 | 4.7 - 7.3 | 4.7 - 7.5 |
Number of Units (In millions) | Weighted- Average Grant Date Fair Value per Unit | |||||
Outstanding at December 31, 2016 | 8 | $ | 29.41 | |||
Granted | 2 | 44.23 | ||||
Vested | (3 | ) | 28.15 | |||
Forfeited | — | 30.86 | ||||
Outstanding at December 31, 2017 | 7 | $ | 35.16 |
December 31, | 2017 | 2016 | |||||
Projected benefit obligation at beginning of year | $ | 26 | $ | 17 | |||
Benefit cost | 9 | 7 | |||||
Actuarial (gain)/loss | 9 | 2 | |||||
Projected benefit obligation at end of year (1) | $ | 44 | $ | 26 |
December 31, | 2017 | 2016 | 2015 | ||||||||
Service cost | $ | 8 | $ | 6 | $ | 8 | |||||
Interest cost | 1 | 1 | — | ||||||||
Net benefit cost | $ | 9 | $ | 7 | $ | 8 | |||||
Assumptions used to determine net benefit cost: | |||||||||||
Discount rate | 3.71 | % | 4.62 | % | 4.19 | % | |||||
Rate of compensation increase | 3.00 | % | 3.00 | % | 3.00 | % | |||||
Investment crediting rate for notional account balances | 6.50 | % | 6.50 | % | 6.50 | % |
December 31, | 2017 | 2016 | |||||
Change in AOCI: | |||||||
Beginning balance | $ | 1 | $ | — | |||
Actuarial gain/(loss) | (11 | ) | 1 | ||||
Ending balance | $ | (10 | ) | $ | 1 |
December 31, | 2017 | 2016 | |||||
Components in AOCI: | |||||||
Net gain/(loss) | $ | (10 | ) | $ | 1 | ||
Amount recognized in AOCI | $ | (10 | ) | $ | 1 | ||
Tax effect | $ | 4 | $ | — | |||
Net amount recognized in AOCI | $ | (6 | ) | $ | 1 |
19. | Taxes on Income |
Year Ended December 31, | 2017 | 2016 | 2015 | ||||||||
Current: | |||||||||||
Federal | $ | 1,132 | $ | 980 | $ | 740 | |||||
State | 106 | 109 | 99 | ||||||||
Total current | 1,238 | 1,089 | 839 | ||||||||
Deferred: | |||||||||||
Federal | 58 | 13 | (6 | ) | |||||||
State | — | 2 | (1 | ) | |||||||
Total deferred | 58 | 15 | (7 | ) | |||||||
Taxes on income | $ | 1,296 | $ | 1,104 | $ | 832 |
December 31, | 2017 | 2016 | |||||
Deferred tax assets: | |||||||
Employee compensation, severance, and benefits | $ | 133 | $ | 216 | |||
Net unrealized loss on available for sale securities | 57 | 97 | |||||
Reserves and allowances | 15 | 25 | |||||
Facilities lease commitments | 14 | 25 | |||||
State and local taxes | 12 | 17 | |||||
Net operating loss carryforwards | 5 | 5 | |||||
Other | 3 | — | |||||
Total deferred tax assets | 239 | 385 | |||||
Valuation allowance | (2 | ) | (3 | ) | |||
Deferred tax assets — net of valuation allowance | 237 | 382 | |||||
Deferred tax liabilities: | |||||||
Capitalized internal-use software development costs | (89 | ) | (118 | ) | |||
Depreciation and amortization | (72 | ) | (114 | ) | |||
Other | — | (7 | ) | ||||
Total deferred tax liabilities | (161 | ) | (239 | ) | |||
Deferred tax asset — net (1) | $ | 76 | $ | 143 |
Year Ended December 31, | 2017 | 2016 | 2015 | |||||
Federal statutory income tax rate | 35.0 | % | 35.0 | % | 35.0 | % | ||
State income taxes, net of federal tax benefit | 2.2 | 2.4 | 2.6 | |||||
Equity compensation benefit | (2.4 | ) | — | — | ||||
Other (1) | 0.7 | (0.5 | ) | (1.1 | ) | |||
Effective income tax rate | 35.5 | % | 36.9 | % | 36.5 | % |
December 31, | 2017 | 2016 | |||||
Balance at beginning of year | $ | 93 | $ | 48 | |||
Additions for tax positions related to the current year | 22 | 16 | |||||
Additions for tax positions related to prior years | 15 | 32 | |||||
Reductions for tax positions related to prior years | (2 | ) | (2 | ) | |||
Reductions due to lapse of statute of limitations | — | — | |||||
Reductions for settlements with tax authorities | (17 | ) | (1 | ) | |||
Balance at end of year | $ | 111 | $ | 93 |
20. | Earnings Per Common Share |
Year Ended December 31, | 2017 | 2016 | 2015 | ||||||||
Net income | $ | 2,354 | $ | 1,889 | $ | 1,447 | |||||
Preferred stock dividends and other (1) | (174 | ) | (143 | ) | (83 | ) | |||||
Net income available to common stockholders | $ | 2,180 | $ | 1,746 | $ | 1,364 | |||||
Weighted-average common shares outstanding — basic | 1,339 | 1,324 | 1,315 | ||||||||
Common stock equivalent shares related to stock incentive plans | 14 | 10 | 12 | ||||||||
Weighted-average common shares outstanding — diluted (2) | 1,353 | 1,334 | 1,327 | ||||||||
Basic EPS | $ | 1.63 | $ | 1.32 | $ | 1.04 | |||||
Diluted EPS | $ | 1.61 | $ | 1.31 | $ | 1.03 |
Actual | Minimum to be Well Capitalized | Minimum Capital Requirement | ||||||||||||||||||
December 31, 2017 | Amount | Ratio | Amount | Ratio | Amount | Ratio | ||||||||||||||
CSC | ||||||||||||||||||||
Common Equity Tier 1 Risk-Based Capital | $ | 14,630 | 19.3 | % | N/A | $ | 3,414 | 4.5 | % | |||||||||||
Tier 1 Risk-Based Capital | 17,423 | 23.0 | % | N/A | 4,552 | 6.0 | % | |||||||||||||
Total Risk-Based Capital | 17,452 | 23.0 | % | N/A | 6,069 | 8.0 | % | |||||||||||||
Tier 1 Leverage | 17,423 | 7.6 | % | N/A | 9,218 | 4.0 | % | |||||||||||||
Schwab Bank | ||||||||||||||||||||
Common Equity Tier 1 Risk-Based Capital | $ | 13,355 | 20.1 | % | $ | 4,324 | 6.5 | % | $ | 2,993 | 4.5 | % | ||||||||
Tier 1 Risk-Based Capital | 13,355 | 20.1 | % | 5,321 | 8.0 | % | 3,991 | 6.0 | % | |||||||||||
Total Risk-Based Capital | 13,382 | 20.1 | % | 6,652 | 10.0 | % | 5,321 | 8.0 | % | |||||||||||
Tier 1 Leverage | 13,355 | 7.1 | % | 9,462 | 5.0 | % | 7,569 | 4.0 | % | |||||||||||
December 31, 2016 | ||||||||||||||||||||
CSC | ||||||||||||||||||||
Common Equity Tier 1 Risk-Based Capital | $ | 12,574 | 18.4 | % | N/A | $ | 3,068 | 4.5 | % | |||||||||||
Tier 1 Risk-Based Capital | 15,357 | 22.5 | % | N/A | 4,091 | 6.0 | % | |||||||||||||
Total Risk-Based Capital | 15,384 | 22.6 | % | N/A | 5,454 | 8.0 | % | |||||||||||||
Tier 1 Leverage | 15,357 | 7.2 | % | N/A | 8,516 | 4.0 | % | |||||||||||||
Schwab Bank | ||||||||||||||||||||
Common Equity Tier 1 Risk-Based Capital | $ | 11,878 | 19.8 | % | $ | 3,894 | 6.5 | % | $ | 2,696 | 4.5 | % | ||||||||
Tier 1 Risk-Based Capital | 11,878 | 19.8 | % | 4,793 | 8.0 | % | 3,595 | 6.0 | % | |||||||||||
Total Risk-Based Capital | 11,904 | 19.9 | % | 5,992 | 10.0 | % | 4,793 | 8.0 | % | |||||||||||
Tier 1 Leverage | 11,878 | 7.0 | % | 8,456 | 5.0 | % | 6,765 | 4.0 | % |
December 31, | 2017 | 2016 | |||||
Net capital | $ | 2,118 | $ | 1,846 | |||
Minimum net capital required | 0.250 | 0.250 | |||||
2% of aggregate debit balances | 435 | 355 | |||||
Net capital in excess of required net capital | 1,683 | 1,491 |
22. | Segment Information |
Investor Services | Advisor Services | Total | |||||||||||||||||||||||||||||||||
Year Ended December 31, | 2017 | 2016 | 2015 | 2017 | 2016 | 2015 | 2017 | 2016 | 2015 | ||||||||||||||||||||||||||
Net Revenues: | |||||||||||||||||||||||||||||||||||
Net interest revenue | $ | 3,231 | $ | 2,591 | $ | 2,133 | $ | 1,051 | $ | 731 | $ | 392 | $ | 4,282 | $ | 3,322 | $ | 2,525 | |||||||||||||||||
Asset management and | |||||||||||||||||||||||||||||||||||
administration fees | 2,344 | 2,093 | 1,837 | 1,048 | 962 | 813 | 3,392 | 3,055 | 2,650 | ||||||||||||||||||||||||||
Trading revenue | 408 | 524 | 556 | 246 | 301 | 310 | 654 | 825 | 866 | ||||||||||||||||||||||||||
Other | 217 | 199 | 234 | 73 | 72 | 94 | 290 | 271 | 328 | ||||||||||||||||||||||||||
Provision for loan losses | — | 4 | 11 | — | 1 | — | — | 5 | 11 | ||||||||||||||||||||||||||
Total net revenues | 6,200 | 5,411 | 4,771 | 2,418 | 2,067 | 1,609 | 8,618 | 7,478 | 6,380 | ||||||||||||||||||||||||||
Expenses Excluding Interest | 3,725 | 3,380 | 3,090 | 1,243 | 1,105 | 1,011 | 4,968 | 4,485 | 4,101 | ||||||||||||||||||||||||||
Income before taxes on income | $ | 2,475 | $ | 2,031 | $ | 1,681 | $ | 1,175 | $ | 962 | $ | 598 | $ | 3,650 | $ | 2,993 | $ | 2,279 | |||||||||||||||||
Capital expenditures | $ | 265 | $ | 234 | $ | 195 | $ | 147 | $ | 119 | $ | 90 | $ | 412 | $ | 353 | $ | 285 | |||||||||||||||||
Depreciation and amortization | $ | 203 | $ | 180 | $ | 171 | $ | 66 | $ | 54 | $ | 53 | $ | 269 | $ | 234 | $ | 224 |
23. | The Charles Schwab Corporation – Parent Company Only Financial Statements |
Year Ended December 31, | 2017 | 2016 | 2015 | ||||||||
Interest revenue | $ | 33 | $ | 22 | $ | 12 | |||||
Interest expense | (114 | ) | (100 | ) | (86 | ) | |||||
Net interest expense | (81 | ) | (78 | ) | (74 | ) | |||||
Other | 3 | 1 | 4 | ||||||||
Expenses excluding interest | (32 | ) | (21 | ) | (27 | ) | |||||
Loss before income tax benefit and equity in net income of subsidiaries | (110 | ) | (98 | ) | (97 | ) | |||||
Income tax benefit | 27 | 34 | 41 | ||||||||
Loss before equity in net income of subsidiaries | (83 | ) | (64 | ) | (56 | ) | |||||
Equity in net income of subsidiaries: | |||||||||||
Equity in undistributed net income of subsidiaries | 1,479 | 1,690 | 1,287 | ||||||||
Dividends from bank subsidiary | 625 | — | — | ||||||||
Dividends from non-bank subsidiaries | 333 | 263 | 216 | ||||||||
Net Income | 2,354 | 1,889 | 1,447 | ||||||||
Preferred stock dividends and other (1) | 174 | 143 | 83 | ||||||||
Net Income Available to Common Stockholders | $ | 2,180 | $ | 1,746 | $ | 1,364 |
December 31, | 2017 | 2016 | |||||
Assets | |||||||
Cash and cash equivalents | $ | 2,825 | $ | 1,189 | |||
Receivables from subsidiaries | 571 | 503 | |||||
Available for sale securities | 573 | 569 | |||||
Held to maturity securities | 223 | 223 | |||||
Other securities owned — at fair value | 76 | 75 | |||||
Loans to non-bank subsidiaries | 448 | — | |||||
Investment in non-bank subsidiaries | 5,393 | 5,044 | |||||
Investment in bank subsidiary | 13,224 | 11,726 | |||||
Other assets | 160 | 124 | |||||
Total assets | $ | 23,493 | $ | 19,453 | |||
Liabilities and Stockholders’ Equity | |||||||
Accrued expenses and other liabilities | $ | 276 | $ | 219 | |||
Payables to subsidiaries | — | 6 | |||||
Long-term debt | 4,692 | 2,807 | |||||
Total liabilities | 4,968 | 3,032 | |||||
Stockholders’ equity | 18,525 | 16,421 | |||||
Total liabilities and stockholders’ equity | $ | 23,493 | $ | 19,453 |
Year Ended December 31, | 2017 | 2016 | 2015 | ||||||||
Cash Flows from Operating Activities | |||||||||||
Net income | $ | 2,354 | $ | 1,889 | $ | 1,447 | |||||
Adjustments to reconcile net income to net cash provided by | |||||||||||
operating activities: | |||||||||||
Equity in undistributed earnings of subsidiaries | (1,479 | ) | (1,690 | ) | (1,287 | ) | |||||
Other | 5 | (37 | ) | (31 | ) | ||||||
Net change in: | |||||||||||
Other securities owned | (1 | ) | (10 | ) | 9 | ||||||
Other assets | (26 | ) | (27 | ) | (32 | ) | |||||
Accrued expenses and other liabilities | 44 | 30 | 4 | ||||||||
Net cash provided by (used for) operating activities | 897 | 155 | 110 | ||||||||
Cash Flows from Investing Activities | |||||||||||
Due from (to) subsidiaries — net | (374 | ) | 95 | 93 | |||||||
Increase in investments in subsidiaries | (342 | ) | (1,547 | ) | (611 | ) | |||||
Repayments (Advances) of subordinated loan to CS&Co | — | 465 | (150 | ) | |||||||
Purchases of available for sale securities | (201 | ) | (2 | ) | (842 | ) | |||||
Proceeds from sales of available for sale securities | 197 | 2 | 200 | ||||||||
Principal payments on available for sale securities | — | — | 75 | ||||||||
Purchases of held to maturity securities | — | — | (223 | ) | |||||||
Other investing activities | (6 | ) | (4 | ) | — | ||||||
Net cash provided by (used for) investing activities | (726 | ) | (991 | ) | (1,458 | ) | |||||
Cash Flows from Financing Activities | |||||||||||
Issuance of long-term debt | 2,129 | — | 1,346 | ||||||||
Repayment of long-term debt | (250 | ) | — | (350 | ) | ||||||
Net proceeds from preferred stock offerings | 492 | 1,316 | 581 | ||||||||
Redemption of preferred stock | (485 | ) | — | — | |||||||
Dividends paid | (592 | ) | (486 | ) | (387 | ) | |||||
Proceeds from stock options exercised and other | 171 | 144 | 90 | ||||||||
Other financing activities | — | 44 | 32 | ||||||||
Net cash provided by (used for) financing activities | 1,465 | 1,018 | 1,312 | ||||||||
Increase (Decrease) in Cash and Cash Equivalents | 1,636 | 182 | (36 | ) | |||||||
Cash and Cash Equivalents at Beginning of Year | 1,189 | 1,007 | 1,043 | ||||||||
Cash and Cash Equivalents at End of Year | $ | 2,825 | $ | 1,189 | $ | 1,007 |
Fourth Quarter | Third Quarter | Second Quarter | First Quarter | ||||||||||||
Year Ended December 31, 2017: | |||||||||||||||
Total Net Revenues | $ | 2,242 | $ | 2,165 | $ | 2,130 | $ | 2,081 | |||||||
Total Expenses Excluding Interest | $ | 1,289 | $ | 1,220 | $ | 1,221 | $ | 1,238 | |||||||
Net Income | $ | 597 | $ | 618 | $ | 575 | $ | 564 | |||||||
Net Income Available to Common Stockholders | $ | 550 | $ | 575 | $ | 530 | $ | 525 | |||||||
Weighted-Average Common Shares Outstanding — Basic | 1,343 | 1,339 | 1,338 | 1,336 | |||||||||||
Weighted-Average Common Shares Outstanding — Diluted | 1,358 | 1,353 | 1,351 | 1,351 | |||||||||||
Earnings Per Common Share — Basic | $ | .41 | $ | .43 | $ | .40 | $ | .39 | |||||||
Earnings Per Common Share — Diluted | $ | .41 | $ | .42 | $ | .39 | $ | .39 | |||||||
Dividends Declared Per Common Share | $ | .08 | $ | .08 | $ | .08 | $ | .08 | |||||||
Range of Common Stock Price Per Share: | |||||||||||||||
High | $ | 52.52 | $ | 44.35 | $ | 44.10 | $ | 43.65 | |||||||
Low | $ | 42.20 | $ | 38.06 | $ | 37.16 | $ | 37.62 | |||||||
Range of Price/Earnings Ratio (1): | |||||||||||||||
High | 33 | 28 | 30 | 31 | |||||||||||
Low | 26 | 24 | 25 | 27 | |||||||||||
Year Ended December 31, 2016: | |||||||||||||||
Total Net Revenues | $ | 1,972 | $ | 1,914 | $ | 1,828 | $ | 1,764 | |||||||
Total Expenses Excluding Interest | $ | 1,148 | $ | 1,120 | $ | 1,108 | $ | 1,109 | |||||||
Net Income | $ | 522 | $ | 503 | $ | 452 | $ | 412 | |||||||
Net Income Available to Common Stockholders | $ | 478 | $ | 470 | $ | 406 | $ | 392 | |||||||
Weighted-Average Common Shares Outstanding — Basic | 1,329 | 1,324 | 1,322 | 1,321 | |||||||||||
Weighted-Average Common Shares Outstanding — Diluted | 1,341 | 1,334 | 1,333 | 1,330 | |||||||||||
Earnings Per Common Share — Basic | $ | .36 | $ | .36 | $ | .31 | $ | .30 | |||||||
Earnings Per Common Share — Diluted | $ | .36 | $ | .35 | $ | .30 | $ | .29 | |||||||
Dividends Declared Per Common Share | $ | .07 | $ | .07 | $ | .07 | $ | .06 | |||||||
Range of Common Stock Price Per Share: | |||||||||||||||
High | $ | 40.58 | $ | 31.87 | $ | 31.07 | $ | 32.23 | |||||||
Low | $ | 30.66 | $ | 23.83 | $ | 24.02 | $ | 21.51 | |||||||
Range of Price/Earnings Ratio (1): | |||||||||||||||
High | 31 | 26 | 27 | 29 | |||||||||||
Low | 24 | 20 | 21 | 20 |
/s/ DELOITTE & TOUCHE LLP |
Item 10. | Directors, Executive Officers, and Corporate Governance |
Item 11. | Executive Compensation |
Item 12. | Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters |
Item 13. | Certain Relationships and Related Transactions, and Director Independence |
Item 14. | Principal Accountant Fees and Services |
Item 15. | Exhibits, Financial Statement Schedules |
Exhibit Number | Exhibit | |
3.11 | ||
3.14 | ||
3.15 | ||
3.16 | ||
3.17 | ||
3.18 | ||
3.19 | ||
3.20 | ||
3.21 | ||
4.1 | ||
4.2 | ||
4.3 | ||
4.4 | ||
4.5 | ||
Exhibit Number | Exhibit | |
4.6 | Neither the Registrant nor its subsidiaries are parties to any instrument with respect to long-term debt for which securities authorized thereunder exceed 10% of the total assets of the Registrant and its subsidiaries on a consolidated basis. Copies of instruments with respect to long-term debt of lesser amounts will be provided to the SEC upon request. | |
10.4 | Form of Release Agreement dated as of March 31, 1987 among BAC, Registrant, Schwab Holdings, Inc., Charles Schwab & Co., Inc., and former shareholders of Schwab Holdings, Inc., filed as the identically-numbered exhibit to Registrant’s Registration Statement No. 33-16192 on Form S-1 and incorporated herein by reference. | |
10.57 | Registration Rights and Stock Restriction Agreement, dated as of March 31, 1987, between the Registrant and the holders of the Common Stock, filed as Exhibit 4.23 to Registrant’s Registration Statement No. 33-16192 on Form S-1 and incorporated herein by reference. | |
10.72 | ||
10.271 | (2) | |
10.272 | (2) | |
10.314 | (2) | |
10.322 | (2) | |
10.338 | (2) | |
10.349 | (2) | |
10.352 | (2) | |
10.360 | (2) | |
10.362 | (2) | |
10.365 | (2) | |
10.367 | (2) | |
10.368 | ||
Exhibit Number | Exhibit | |
10.369 | (2) | |
10.370 | (2) | |
10.371 | (2) | |
10.372 | (2) | |
10.373 | (2) | |
10.374 | (2) | |
10.375 | (2) | |
10.376 | (2) | |
10.377 | (2) | |
10.378 | (2) | |
10.379 | (2) | |
10.380 | (2) | |
10.381 | (2) | |
Exhibit Number | Exhibit | |
10.382 | (2) | |
10.383 | (2) | |
10.384 | (2) | |
10.385 | (1),(2) | |
10.386 | (1),(2) | |
10.387 | (1),(2) | |
10.388 | (1),(2) | |
10.389 | (1),(2) | |
10.390 | (1),(2) | |
12.1 | ||
21.1 | ||
23.1 | ||
31.1 | ||
31.2 | ||
32.1 | (1) | |
32.2 | (1) | |
101.INS | XBRL Instance Document | (3) |
101.SCH | XBRL Taxonomy Extension Schema | (3) |
101.CAL | XBRL Taxonomy Extension Calculation | (3) |
101.DEF | XBRL Extension Definition | (3) |
101.LAB | XBRL Taxonomy Extension Label | (3) |
101.PRE | XBRL Taxonomy Extension Presentation | (3) |
Exhibit Number | Exhibit | |
(1) | Furnished as an exhibit to this annual report on Form 10-K. | |
(2) | Management contract or compensatory plan. | |
(3) | Attached as Exhibit 101 to this Annual Report on Form 10-K for the annual period ended December 31, 2017, are the following materials formatted in XBRL (Extensible Business Reporting Language) (i) the Consolidated Statements of Income,(ii) the Consolidated Statements of Comprehensive Income, (iii) the Consolidated Balance Sheets, (iv) the Consolidated Statements of Cash Flows, (v) the Consolidated Statements of Stockholders’ Equity, and (vi) Notes to Consolidated Financial Statements. |
THE CHARLES SCHWAB CORPORATION | ||
(Registrant) | ||
BY: | /s/ Walter W. Bettinger II | |
Walter W. Bettinger II | ||
President and Chief Executive Officer |
Signature / Title | Signature / Title | |
/s/ Walter W. Bettinger II | /s/ Peter Crawford | |
Walter W. Bettinger II, | Peter Crawford, | |
President and Chief Executive Officer and Director | Executive Vice President and Chief Financial Officer (principal financial and accounting officer) | |
/s/ Charles R. Schwab | /s/ John K. Adams, Jr. | |
Charles R. Schwab, Chairman of the Board | John K. Adams, Jr., Director | |
/s/ C. Preston Butcher | /s/ Joan T. Dea | |
C. Preston Butcher, Director | Joan T. Dea, Director | |
/s/ Christopher V. Dodds | /s/ Stephen A. Ellis | |
Christopher V. Dodds, Director | Stephen A. Ellis, Director | |
/s/ Mark A. Goldfarb | /s/ William S. Haraf | |
Mark A. Goldfarb, Director | William S. Haraf, Director | |
/s/ Frank C. Herringer | /s/ Stephen T. McLin | |
Frank C. Herringer, Director | Stephen T. McLin, Director | |
/s/ Arun Sarin | /s/ Paula A. Sneed | |
Arun Sarin, Director | Paula A. Sneed, Director | |
/s/ Roger O. Walther | /s/ Robert N. Wilson | |
Roger O. Walther, Director | Robert N. Wilson, Director |
STATISTICAL DISCLOSURE BY BANK HOLDING COMPANIES | ||
The following table outlines the information required by the SEC’s Industry Guide 3, “Statistical Disclosure by Bank Holding Companies.” Beginning in 2017, these disclosures are presented at the consolidated holding company level. Comparative prior period amounts are also presented at a consolidated level. | ||
Required Disclosure | Page | |
Distribution of Assets, Liabilities and Stockholders’ Equity; Interest Rates and Interest Differential | F-2 – F-3 | |
Investment Portfolio | F-4 | |
Risk Elements – Cross-border Holdings | F-5 | |
Loan Portfolio | F-6 – F-7 | |
Summary of Loan Loss Experience | F-7 | |
Deposits | F-7 | |
Return on Equity and Assets | F-7 | |
1. | Three-year Net Interest Revenue and Average Balances |
For the Year Ended December 31, | 2017 | 2016 | 2015 | |||||||||||||||||||||||||||||
Average | Average | Average | Average | Average | Average | |||||||||||||||||||||||||||
Balance | Interest | Rate | Balance | Interest | Rate | Balance | Interest | Rate | ||||||||||||||||||||||||
Assets: | ||||||||||||||||||||||||||||||||
Cash and cash equivalents | $ | 9,931 | $ | 109 | 1.10 | % | $ | 11,143 | $ | 57 | 0.51 | % | $ | 9,358 | $ | 24 | 0.26 | % | ||||||||||||||
Cash and investments segregated | 18,525 | 166 | 0.90 | % | 20,104 | 93 | 0.46 | % | 18,606 | 31 | 0.17 | % | ||||||||||||||||||||
Broker-related receivables (1) | 430 | 3 | 0.70 | % | 558 | 1 | 0.22 | % | 274 | — | 0.07 | % | ||||||||||||||||||||
Receivables from brokerage clients | 16,269 | 575 | 3.53 | % | 15,001 | 497 | 3.31 | % | 15,212 | 502 | 3.30 | % | ||||||||||||||||||||
Available for sale securities (2) | 53,040 | 815 | 1.54 | % | 72,586 | 883 | 1.22 | % | 62,249 | 629 | 1.01 | % | ||||||||||||||||||||
Held to maturity securities | 103,599 | 2,354 | 2.27 | % | 57,451 | 1,402 | 2.44 | % | 38,280 | 957 | 2.50 | % | ||||||||||||||||||||
Bank loans (6) | 15,919 | 472 | 2.97 | % | 14,715 | 400 | 2.72 | % | 13,973 | 369 | 2.64 | % | ||||||||||||||||||||
Total interest-earning assets | 217,713 | 4,494 | 2.06 | % | 191,558 | 3,333 | 1.74 | % | 157,952 | 2,512 | 1.59 | % | ||||||||||||||||||||
Other interest revenue | 130 | 160 | 145 | |||||||||||||||||||||||||||||
Total interest-earning assets | 217,713 | 4,624 | 2.12 | % | 191,558 | 3,493 | 1.82 | % | 157,952 | 2,657 | 1.68 | % | ||||||||||||||||||||
Noninterest-earning assets (3,4) | 9,968 | 9,354 | 8,061 | |||||||||||||||||||||||||||||
Total assets | $ | 227,681 | $ | 200,912 | $ | 166,013 | ||||||||||||||||||||||||||
Liabilities and Stockholders’ Equity: | ||||||||||||||||||||||||||||||||
Bank deposits | $ | 163,998 | $ | 148 | 0.09 | % | $ | 141,432 | $ | 37 | 0.03 | % | $ | 113,464 | $ | 29 | 0.03 | % | ||||||||||||||
Payables to brokerage clients | 25,403 | 16 | 0.06 | % | 26,311 | 3 | 0.01 | % | 25,651 | 2 | 0.01 | % | ||||||||||||||||||||
Short-term borrowings (1) | 3,503 | 41 | 1.17 | % | 1,864 | 9 | 0.48 | % | 21 | — | 0.27 | % | ||||||||||||||||||||
Long-term debt | 3,431 | 119 | 3.47 | % | 2,876 | 104 | 3.62 | % | 2,717 | 92 | 3.39 | % | ||||||||||||||||||||
Total interest-bearing liabilities | 196,335 | 324 | 0.17 | % | 172,483 | 153 | 0.09 | % | 141,853 | 123 | 0.09 | % | ||||||||||||||||||||
Other interest expense | 18 | 18 | 9 | |||||||||||||||||||||||||||||
Noninterest-bearing liabilities (3,5) | 13,787 | 13,375 | 11,529 | |||||||||||||||||||||||||||||
Total liabilities (7) | 210,122 | 342 | 0.15 | % | 185,858 | 171 | 0.09 | % | 153,382 | 132 | 0.08 | % | ||||||||||||||||||||
Stockholders’ equity (3) | 17,559 | 15,054 | 12,631 | |||||||||||||||||||||||||||||
Total liabilities and stockholders’ equity | $ | 227,681 | $ | 200,912 | $ | 166,013 | ||||||||||||||||||||||||||
Net interest revenue | $ | 4,282 | $ | 3,322 | $ | 2,525 | ||||||||||||||||||||||||||
Net yield on interest-earning assets | 1.97 | % | 1.73 | % | 1.60 | % |
2. | Analysis of Change in Net Interest Revenue |
2017 Compared to 2016 Increase (Decrease) Due to Change in: | 2016 Compared to 2015 Increase (Decrease) Due to Change in: | ||||||||||||||||||||||
Average Volume | Average Rate | Total | Average Volume | Average Rate | Total | ||||||||||||||||||
Interest-earning assets: | |||||||||||||||||||||||
Cash and cash equivalents (1) | $ | (6 | ) | $ | 58 | $ | 52 | $ | 5 | $ | 28 | $ | 33 | ||||||||||
Cash and investments segregated | (7 | ) | 80 | 73 | 3 | 59 | 62 | ||||||||||||||||
Broker-related receivables | — | 2 | 2 | — | 1 | 1 | |||||||||||||||||
Receivables from brokerage clients | 42 | 36 | 78 | (7 | ) | 2 | (5 | ) | |||||||||||||||
Available for sale securities (2) | (238 | ) | 170 | (68 | ) | 104 | 150 | 254 | |||||||||||||||
Held to maturity securities | 1,126 | (174 | ) | 952 | 479 | (34 | ) | 445 | |||||||||||||||
Bank loans (3) | 33 | 39 | 72 | 20 | 11 | 31 | |||||||||||||||||
Other interest revenue | — | (30 | ) | (30 | ) | — | 15 | 15 | |||||||||||||||
Total interest-earning assets | $ | 950 | $ | 181 | $ | 1,131 | $ | 604 | $ | 232 | $ | 836 | |||||||||||
Interest-bearing sources of funds: | |||||||||||||||||||||||
Bank deposits | $ | 7 | $ | 104 | $ | 111 | $ | 8 | $ | — | $ | 8 | |||||||||||
Payables to brokerage clients | — | 13 | 13 | — | 1 | 1 | |||||||||||||||||
Short-term borrowings | 8 | 24 | 32 | 5 | 4 | 9 | |||||||||||||||||
Long-term debt | 20 | (5 | ) | 15 | 5 | 7 | 12 | ||||||||||||||||
Other interest expense | — | — | — | — | 9 | 9 | |||||||||||||||||
Total sources on which interest is paid | 35 | 136 | 171 | 18 | 21 | 39 | |||||||||||||||||
Change in net interest revenue | $ | 915 | $ | 45 | $ | 960 | $ | 586 | $ | 211 | $ | 797 |
3. | Investment Securities |
December 31, 2015 | Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | |||||||||||
Available for sale securities: | |||||||||||||||
U.S. agency mortgage-backed securities | $ | 22,014 | $ | 183 | $ | 48 | $ | 22,149 | |||||||
U.S. Treasury securities | 5,719 | 2 | 17 | 5,704 | |||||||||||
Asset-backed securities | 21,784 | 7 | 306 | 21,485 | |||||||||||
Corporate debt securities | 10,764 | 14 | 31 | 10,747 | |||||||||||
Certificates of deposit | 1,685 | 1 | 3 | 1,683 | |||||||||||
U.S. agency notes | 3,177 | — | 27 | 3,150 | |||||||||||
U.S. state and municipal securities | 414 | 10 | — | 424 | |||||||||||
Non-agency commercial mortgage-backed securities | 298 | 1 | — | 299 | |||||||||||
Other securities | 5 | — | — | 5 | |||||||||||
Total available for sale securities | $ | 65,860 | $ | 218 | $ | 432 | $ | 65,646 | |||||||
Held to maturity securities: | |||||||||||||||
U.S. agency mortgage-backed securities | $ | 48,785 | $ | 391 | $ | 293 | $ | 48,883 | |||||||
Non-agency commercial mortgage-backed securities | 999 | 6 | 20 | 985 | |||||||||||
U.S. Treasury securities | 223 | — | 3 | 220 | |||||||||||
Total held to maturity securities | $ | 50,007 | $ | 397 | $ | 316 | $ | 50,088 |
Issuer | Aggregate Amortized Cost | Aggregate Fair Value | |||||
Citibank Credit Card Issuance Trust (1) | $ | 1,850 | $ | 1,863 |
4. | Cross-border Holdings |
December 31, 2016 | Banks and other financial institutions | Commercial and industrial institutions | Total | Exposure as a % of total assets | |||||||||
Country: | |||||||||||||
France | $ | 1,784 | $ | 110 | $ | 1,894 | 0.8 | % | |||||
Total | $ | 1,784 | $ | 110 | $ | 1,894 |
December 31, 2015 | Banks and other financial institutions | Commercial and industrial institutions | Total | Exposure as a % of total assets | |||||||||
Country: | |||||||||||||
Canada | $ | 1,499 | $ | — | $ | 1,499 | 0.8 | % | |||||
Australia | 1,376 | 60 | 1,436 | 0.8 | % | ||||||||
Total | $ | 2,875 | $ | 60 | $ | 2,935 |
5. | Bank Loans and Related Allowance for Loan Losses |
December 31, | 2017 | 2016 | 2015 | 2014 | 2013 | ||||||||||||||
First Mortgages | $ | 10,016 | $ | 9,134 | $ | 8,334 | $ | 8,127 | $ | 8,006 | |||||||||
HELOCs | 1,943 | 2,350 | 2,735 | 2,955 | 3,041 | ||||||||||||||
Pledged asset lines | 4,369 | 3,851 | 3,232 | 2,320 | 1,384 | ||||||||||||||
Other | 176 | 94 | 64 | 39 | 36 | ||||||||||||||
Total bank loans | $ | 16,504 | $ | 15,429 | $ | 14,365 | $ | 13,441 | $ | 12,467 |
December 31, | 2017 | 2016 | 2015 | 2014 | 2013 | ||||||||||||||
Nonaccrual loans | $ | 28 | $ | 26 | $ | 28 | $ | 35 | $ | 48 | |||||||||
Average nonaccrual loans | $ | 27 | $ | 27 | $ | 30 | $ | 39 | $ | 43 |
December 31, | 2017 | 2016 | 2015 | 2014 | 2013 | ||||||||||||||
Balance at beginning of year | $ | 26 | $ | 31 | $ | 42 | $ | 48 | $ | 56 | |||||||||
Charge-offs | (3 | ) | (2 | ) | (3 | ) | (5 | ) | (11 | ) | |||||||||
Recoveries | 3 | 2 | 3 | 3 | 4 | ||||||||||||||
Provision for loan losses | — | (5 | ) | (11 | ) | (4 | ) | (1 | ) | ||||||||||
Balance at end of year | $ | 26 | $ | 26 | $ | 31 | $ | 42 | $ | 48 |
December 31, 2017 | Within 1 year | After 1 year through 5 years | After 5 years | Total | |||||||||||
First Mortgages (1) | $ | — | $ | — | $ | 10,016 | $ | 10,016 | |||||||
HELOCs (2) | 980 | 365 | 598 | 1,943 | |||||||||||
Pledged asset lines | 341 | 4,024 | 4 | 4,369 | |||||||||||
Other | 10 | 162 | 4 | 176 | |||||||||||
Total | $ | 1,331 | $ | 4,551 | $ | 10,622 | $ | 16,504 |
December 31, 2017 | After 1 year | ||
Loans with floating or adjustable interest rates | $ | 14,086 | |
Loans with predetermined interest rates | 1,087 | ||
Total | $ | 15,173 |
6. | Summary of Loan Loss on Banking Loans Experience |
December 31, | 2017 | 2016 | 2015 | 2014 | 2013 | ||||||||||||||
Average loans | $ | 15,919 | $ | 14,715 | $ | 13,973 | $ | 12,906 | $ | 11,758 | |||||||||
Allowance to year end loans | .16 | % | .17 | % | .21 | % | .31 | % | .39 | % | |||||||||
Allowance to nonperforming loans | 93 | % | 101 | % | 110 | % | 120 | % | 100 | % | |||||||||
Nonperforming assets to average loans | |||||||||||||||||||
and real estate owned | .20 | % | .21 | % | .26 | % | .31 | % | .45 | % |
7. | Bank Deposits |
2017 | 2016 | 2015 | |||||||||||||||
Amount | Rate | Amount | Rate | Amount | Rate | ||||||||||||
Analysis of average daily deposits: | |||||||||||||||||
Money market and other savings deposits | $ | 148,679 | 0.09 | % | $ | 126,719 | 0.02 | % | $ | 99,881 | 0.02 | % | |||||
Interest-bearing demand deposits | 15,319 | 0.14 | % | 14,713 | 0.07 | % | 13,583 | 0.07 | % | ||||||||
Total | $ | 163,998 | $ | 141,432 | $ | 113,464 |
8. | Ratios |
December 31, | 2017 | 2016 | 2015 | |||
Return on average total stockholders’ equity | 13.41 | % | 12.55 | % | 11.45 | % |
Return on average total assets | 1.03 | % | 0.94 | % | 0.87 | % |
Average total stockholders’ equity as a percentage of average total assets | 7.71 | % | 7.49 | % | 7.61 | % |
Dividend payout ratio (1) | 19.88 | % | 20.61 | % | 23.30 | % |
(1) | Dividends declared per common share divided by diluted EPS. |
ARTICLE 1: PURPOSE | 1 |
1.1 Establishment of the Plan | 1 |
1.2 Purpose of the Plan | 1 |
ARTICLE 2: DEFINITIONS | 1 |
2.1 Definitions | 1 |
2.2 Gender and Number | 3 |
ARTICLE 3: ADMINISTRATION | 3 |
3.1 Committee and Administrator | 3 |
ARTICLE 4: PARTICIPANTS | 4 |
4.1 Participants | 4 |
ARTICLE 5: DEFERRALS | 4 |
5.1 Salary Deferrals | 4 |
5.2 Deferrals of Bonuses, Commissions and Other Cash Incentive Compensation | 5 |
5.3 Timing of Elections | 5 |
5.4 Deferral Procedures | 6 |
5.5 Election of Time and Manner of Payment | 6 |
5.6 Accounts and Earnings | 8 |
5.7 Maintenance of Accounts | 9 |
5.8 Change in Control | 9 |
5.9 Payment of Deferred Amounts | 11 |
5.10 Payment on Certain Events | 11 |
ARTICLE 6: GENERAL PROVISIONS | 12 |
6.1 Unfunded Obligation | 12 |
6.2 Informal Funding Vehicles | 12 |
6.3 Beneficiary | 12 |
6.4 Incapacity of Participant or Beneficiary | 13 |
6.5 Nonassignment and Qualifying Domestic Relations Orders | 13 |
6.6 No Right to Continued Employment | 14 |
6.7 Tax Withholding | 14 |
6.8 Claims Procedure Generally | 14 |
6.9 Arbitration Following a Change in Control | 15 |
6.10 Termination and Amendment | 16 |
6.11 Applicable Law | 17 |
(a) | a member of the National Academy of Arbitrators or one who currently appears on arbitration panels issued by the Federal Mediation and Conciliation Service or the American Arbitration Association; or |
(b) | a retired judge of the State in which the claimant is a resident who served at the appellate level or higher. |
Name of Recipient: | <first_name> <last_name> |
Number of Target Restricted Stock Units Granted: | <shares_awarded> |
Grant Date: | <award_date> |
Performance Period(s): | [xxxx to xxxx] |
Vesting Schedule: | So long as you remain in service in good standing and subject to the terms of the Restricted Stock Unit Agreement and certification of the achievement of the Performance Goal by Schwab’s Compensation Committee, this grant vests as follows: |
Number of Target Restricted Stock Units on Vesting Date: | |
<vesting_schedule> |
Payment for Units | No payment is required for the Restricted Stock Units that you are receiving. Restricted Stock Units are an unfunded and unsecured obligation of The Charles Schwab Corporation (“Schwab”). |
Vesting | Subject to the provisions of this Restricted Stock Unit Agreement (“Agreement”), a Restricted Stock Unit becomes vested as described in the Notice of Restricted Stock Unit Grant based on the achievement of the Performance Goal established by the Compensation Committee (the “Compensation Committee”) of the Board of Directors of Schwab (the “Board”), of which this Restricted Stock Unit Agreement is a part. Unvested units will be considered “Restricted Stock Units.” If your service terminates for any reason, then your Restricted Stock Units will automatically and permanently be forfeited to the extent that they have not vested before the termination date and will not vest as a result of the termination, unless otherwise noted below. This means that the Restricted Stock Units will immediately revert to Schwab. You will receive no payment for Restricted Stock Units that are forfeited. Schwab determines when your service terminates for this purpose. For all purposes of this Agreement, “service” means continuous employment as a common-law employee of Schwab or a parent company or subsidiary of Schwab, and “subsidiary” means a subsidiary corporation as defined in section 424(f) of the Internal Revenue Code of 1986, as amended (the “Code”). |
Accelerated Vesting | This grant, to the extent not already forfeited, will become fully vested and payable at target upon your death or disability. If, prior to the date your service terminates, Schwab is subject to a “change in control”, as defined in [The Charles Schwab Corporation 2013 Stock Incentive Plan] (the “Plan”), this grant, to the extent not already forfeited, will become fully vested and payable at target as of the date that the change in control occurs. |
Continued Vesting | If your service terminates on account of your retirement as defined below, you will be treated as in service in good standing for purposes of determining further vesting of the |
grant. If you are entitled to severance benefits under The Charles Schwab Severance Pay Plan (or any successor plan) and have signed your Severance Agreement, then you may be treated as in service in good standing during your Severance Period for purposes of determining further vesting of the grant under the terms of that plan. | |
Definition of Fair Market Value | “Fair market value” means the average of the high and low price of a Share (as defined below) as reported on the New York Stock Exchange on the applicable determination date. |
Definition of Disability | For all purposes of this Agreement, "disability" means that you have a disability such that you have been determined to be eligible for benefits under Schwab’s long-term disability plan, or if you are not covered by Schwab’s long-term disability plan, you are unable to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment which has lasted, or can be expected to last, for a continuous period of not less than 12 months or which can be expected to result in death as determined by Schwab in its sole discretion. |
Definition of Retirement | If you are an employee of Schwab and its subsidiaries, “retirement” means termination of service for any reason other than death at any time after the earlier of when you attain age 55, but only if, at the time of your termination, you have been credited with at least 10 years of service or when you attain age 65, but only if, at the time of your termination, you have been credited with at least 5 years of service. The phrase "years of service" above has the same meaning given to it under The SchwabPlan Retirement Savings and Investment Plan (or any successor plan). |
Payment of Shares | The Target Restricted Stock Units in the Notice of Restricted Stock Unit Grant will be used to determine the shares of common stock of The Charles Schwab Corporation (“Shares”) payable based on the Performance Goal and formula established by the Compensation Committee not later than the 90th day of the applicable Performance Period (or, in the event that a Performance Period is expected to be less than 12 months, not later than the date when 25% of the Performance Period has elapsed). The Shares payable are calculated following the end of the Performance Period based on the Performance Goal achieved and any adjustments provided for |
under the Plan and this Agreement. The Shares shall be paid as soon as administratively possible following vesting, but in no event beyond March 15th of the year following the year of vesting. | |
Restrictions on Restricted Stock Units | You may not sell, transfer, pledge, or otherwise dispose of any Restricted Stock Units without Schwab’s written consent. Schwab will deliver Shares to you only after the Restricted Stock Units vest and after all other terms and conditions in this Agreement have been satisfied. Schwab may, in its sole discretion, allow you to transfer these Restricted Stock Units under a domestic relations order in settlement of marital or domestic property rights. In order to transfer these Restricted Stock Units, you and the transferee(s) must follow the procedures prescribed by Schwab, and the transferee must follow the terms of this Agreement. |
Delivery of Shares After Death | In the event of your death prior to the date your service terminates, your Shares will be delivered to your beneficiary or beneficiaries. You may designate one or more beneficiaries by filing a beneficiary designation form with Schwab. You may change your beneficiary designation by filing a new form with Schwab at any time prior to your death. If you do not designate a beneficiary or if your designated beneficiary predeceases you, then, your Shares will be delivered to your estate. The Compensation Committee, in its sole discretion, will determine the form and time of the distribution of Shares. In no event will the payment be made beyond March 15th of the year following the year of death. |
Restrictions on Resale | You agree not to sell any Shares at a time when applicable laws, Schwab’s policies, or an agreement between Schwab and its underwriters prohibit a sale. This restriction will apply as long as your service continues and for such period of time after the termination of your service as Schwab may specify. |
Cancellation of Restricted Stock Units | To the fullest extent permitted by applicable laws, these Restricted Stock Units will immediately be cancelled and will expire in the event that Schwab terminates your employment on account of conduct contrary to the best interests of Schwab, including, without limitation, conduct constituting a violation of law or Schwab policy, fraud, theft, conflict of interest, dishonesty or harassment. The determination whether your employment has been terminated on account of conduct |
inimical to the best interests of Schwab shall be made by Schwab in its sole discretion, and will be entitled to deference upon any review. | |
Withholding Taxes | The Restricted Stock Units will not be paid in Shares unless you have made acceptable arrangements to pay any applicable withholding of income and employment taxes that may be due as a result of this grant. These arrangements may include withholding Shares. Schwab may withhold the number of whole Shares, valued at the fair market value on the applicable date required to satisfy such applicable withholding taxes. Schwab will round up to the next whole Share to cover the applicable withholding taxes, and any amounts in excess of the applicable withholding taxes resulting from rounding up to the next whole Share will be added to your federal income tax withholdings. In the event you do not elect to pay applicable withholding taxes in cash, Schwab shall withhold Shares as noted above. Applicable withholding taxes due on the distribution of Shares subject to this award following termination of employment will be withheld as noted above, unless you have made acceptable arrangements to pay any applicable withholding taxes in cash. If you elect to pay applicable withholding taxes due on the distribution of Shares in cash, you are responsible for having sufficient funds in your Schwab brokerage account to cover the applicable withholding taxes at the time they are due. |
No Stockholder Rights | Your Restricted Stock Units carry no voting or other stockholder rights. You have no rights as a Schwab stockholder until your units are settled by issuing Shares. |
Contribution of Par Value | On your behalf, Schwab will contribute to its capital an amount equal to the par value of the Shares issued to you. |
Dividend Equivalent Rights | If Schwab pays cash dividends on Shares, each Restricted Stock Unit will accrue a dividend equivalent equal to the cash dividend paid per Share, subject to the same vesting and forfeiture provisions as the associated Restricted Stock Units, to be paid in cash without interest at the time the associated Restricted Stock Units vest and Shares are released. In no event will the accumulated dividend equivalent be paid beyond March 15th of the year following the year in which the associated Restricted Stock Units vest. |
No Right to Remain Employee | Nothing in this Agreement will be construed as giving you the right to be retained as an employee, contingent worker, or |
Employee | director of Schwab and its subsidiaries for any specific duration or at all. |
Limitation on Payments | If a payment from the Plan would constitute an excess parachute payment under section 280G of the Code or if there have been certain securities law violations, then your grant may be reduced or forfeited and you may be required to disgorge any profit that you have realized from your grant. If a disqualified individual receives a payment or transfer under the Plan that would constitute an excess parachute payment under section 280G of the Code, such payment will be reduced, as described below. Generally, someone is a “disqualified individual” under section 280G if he or she is (a) an officer of Schwab, (b) a member of the group consisting of the highest paid 1% of the employees of Schwab or, if less, the highest paid 250 employees of Schwab, or (c) a 1% stockholder of Schwab. For purposes of this section on “Limitation on Payments,” the term “Schwab” will include affiliated corporations to the extent determined by the independent auditors most recently selected by the Board (the “Auditors”) in accordance with section 280G(d)(5) of the Code. In the event that the Auditors determine that any payment or transfer in the nature of compensation to or for your benefit, whether paid or payable (or transferred or transferable) pursuant to the terms of the Plan or otherwise (a “Payment”), would be nondeductible for federal income tax purposes because of the provisions concerning “excess parachute payments” in section 280G of the Code, then the aggregate present value of all Payments will be reduced (but not below zero) to the Reduced Amount (as defined below); provided, however, that the Compensation Committee may specify in writing that the grant will not be so reduced and will not be subject to reduction under this section. For this purpose, the “Reduced Amount” will be the amount, expressed as a present value, which maximizes the aggregate present value of the Payments without causing any Payment to be nondeductible by Schwab because of section 280G of the Code. If the Auditors determine that any Payment would be nondeductible because of section 280G of the Code, then Schwab will promptly give you notice to that effect and a copy of the detailed calculation of the Reduced Amount. You may |
then elect, in your discretion, which and how much of the Payments will be eliminated or reduced (as long as after such election, the aggregate present value of the Payments equals the Reduced Amount, and your election is consistent with any mandatory eliminations or reductions that apply under other agreements or the Plan). You will advise Schwab in writing of your election within 10 days of receipt of the notice. If you do not make such an election within the 10-day period, then Schwab may elect which and how much of the Payments will be eliminated or reduced (as long as after such election the aggregate present value of the Payments equals the Reduced Amount). Schwab will notify you promptly of its election. Present value will be determined in accordance with section 280G(d)(4) of the Code. The Auditors’ determinations will be binding upon you and Schwab and will be made within 60 days of the date when a Payment becomes payable or transferable. As promptly as practicable following these determinations and elections, Schwab will pay or transfer to or for your benefit such amounts as are then due to you under the Plan and will promptly pay or transfer to or for your benefit in the future such amounts as become due to you under the Plan. As a result of uncertainty in the application of section 280G of the Code at the time of an initial determination by the Auditors, it is possible that Payments will have been made by Schwab that should not have been made (an “Overpayment”) or that additional Payments that will not have been made by Schwab could have been made (an “Underpayment”) consistent in each case with the calculation of the Reduced Amount. In the event the Auditors, based upon the assertion of a deficiency by the Internal Revenue Service against you or Schwab that the Auditors believe has a high probability of success, determine that an Overpayment has been made, the amount of such Overpayment will be paid by you to Schwab on demand, together with interest at the applicable federal rate provided in section 7872(f)(2) of the Code. However, no amount will be payable by you to Schwab if and to the extent that such payment would not reduce the amount that is subject to taxation under section 4999 of the Code. In the event the Auditors determine that an Underpayment has occurred, such Underpayment will promptly be paid or transferred by Schwab to or for your benefit, together with interest at the applicable federal rate provided in section 7872(f)(2) of the Code. |
Notwithstanding the foregoing, in no event will a payment be made under this Section beyond March 15th of the year following the year in which the amount ceases to be subject to a substantial risk of forfeiture. | |
Plan Administration | The Plan administrator has discretionary authority to make all determinations related to this grant and to construe the terms of the Plan, the Notice of Restricted Stock Unit Grant and this Agreement. The Plan administrator’s determinations are conclusive and binding on all persons, and they are entitled to deference upon any review. |
Adjustments | In the event of a stock split, a stock dividend or a similar change in the Shares, the number of Restricted Stock Units that remain subject to forfeiture shall be adjusted accordingly. |
Severability | In the event that any provision of this Agreement is held invalid or unenforceable, the provision will be severable from, and such invalidity or unenforceability will not be construed to have any effect on, the remaining provisions of this Agreement. |
Applicable Law | This Agreement will be interpreted and enforced under the laws of the State of Delaware (without regard to their choice-of-law provisions), as such laws are applied to contracts entered into and performed in Delaware. |
The Plan and Other Agreements | The text of the Plan is incorporated in this Agreement by reference. This Agreement, the Notice of Restricted Stock Unit Grant and the Plan constitute the entire understanding between you and Schwab regarding this grant. Any prior agreements, commitments or negotiations concerning this grant are superseded. This Agreement may be amended only by another written agreement, signed by both parties and approved by the Compensation Committee. If there is any inconsistency or conflict between any provision of this Agreement and the Plan, the terms of the Plan will control. |
Name of Recipient: | <first_name> <last_name> |
Total Number of Shares Granted: | <shares_awarded> |
Exercise Price Per Share: | <award_price> |
Grant Date: | <award_date> |
Expiration Date: | <expire_date> |
Vesting Schedule | So long as you remain employed in good standing by Schwab or its subsidiaries and subject to the terms of the Nonqualified Stock Option Agreement, you will acquire the right to exercise this option (become "vested" in this option) on the following dates and in the following amounts: Number of Shares on Vesting Date: <vesting_schedule> |
Tax Treatment | This option is a nonqualified stock option and is not intended to qualify as an incentive stock option under federal tax laws. |
Vesting | Subject to the provisions of this Nonqualified Stock Option Agreement (“Agreement”), this option becomes vested in installments as described in the Notice of Nonqualified Stock Option Grant. |
Accelerated Vesting | This option will become fully exercisable if your service with The Charles Schwab Corporation (“Schwab”) and its subsidiaries terminates on account of your death or disability. This option will become fully exercisable if your service with Schwab and its subsidiaries terminates on account of your retirement as defined below. If, prior to the date your service terminates, Schwab is subject to a “change in control” (as defined in [The Charles Schwab Corporation 2013 Stock Incentive Plan] (the “Plan”)), this option will become fully exercisable immediately preceding the change in control. If the Compensation Committee (or its delegate) (the “Compensation Committee”) of the Board of Directors of Schwab (the “Board”) determines that a change in control is likely to occur, Schwab will advise you and this option will become fully exercisable as of the date 10 days prior to the anticipated date of the change in control. |
Definition of Disability | For all purposes of this Agreement, "disability" means that you have a disability such that you have been determined to be eligible for benefits under Schwab’s long-term disability plan or if you are not covered by Schwab’s long-term disability plan, you are unable to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment which has lasted, or can be expected to last, for a continuous period of not less than 12 months or which can be expected to result in death as determined by Schwab in its sole discretion. |
Definition of Retirement | For all purposes of this Agreement, “retirement” will mean any termination of employment with Schwab and its subsidiaries for any reason other than death at any time after the earlier of when you attain age 55, but only if, at the time of your termination, you have been credited with at least 10 years of service or when you attain age 65, but only if, at the time of your termination, you have been credited with at least 5 years of service. |
The phrase "years of service" above has the same meaning given to it under the SchwabPlan Retirement Savings and Investment Plan (or any successor plan). | |
Exercise Procedures | You or your representative may exercise this option by following the procedures prescribed by Schwab. If this option is being exercised by your representative, your representative must furnish proof satisfactory to Schwab of your representative’s right to exercise this option. After completing the prescribed procedures, Schwab will cause to be issued the shares of common stock of Schwab (“Shares”) purchased, which will be registered in the name of the person exercising this option. |
Forms of Payment | When you submit your notice of exercise, you must pay the option exercise price for the Shares you are purchasing. Payment may be made in one of the following forms: • Cash in your Schwab brokerage account in an amount sufficient to cover the option exercise price of the Shares and the required tax withholding. (This exercise method is sometimes referred to as “Exercise and Hold”). • Shares surrendered to Schwab. These Shares will be valued at their fair market value on the date when the new Shares are purchased. (This exercise method is sometimes referred to as a “Stock Swap.”) • By delivery (in a manner prescribed by Schwab) of an irrevocable direction to Charles Schwab & Co., Inc. to sell Shares (including Shares to be issued upon exercise of this option) and to deliver all or part of the sale proceeds to Schwab in payment of all or part of the exercise price. (This exercise method is sometimes referred to as “Exercise and Sell” or “Sell to Cover.”) |
Term | This option expires no later than the Expiration Date specified in the Notice of Nonqualified Stock Option Grant but may expire earlier upon your termination of service, as described below. |
Termination of Service | This option will expire on the date three months following the date of your termination of employment with Schwab and its subsidiaries for any reason other than on account of death, disability or retirement. The terms “disability” and “retirement” are defined above. If you cease to be an employee of Schwab and its subsidiaries by reason of your disability or death, then this option will expire on the first anniversary of the date of your death or disability. If you cease to be an employee of Schwab and its subsidiaries by |
reason of your retirement and have been credited with at least 5 years of service, then this option will expire on the earlier of the fifth anniversary of the date of your termination or the Expiration Date specified in the Notice of Nonqualified Stock Option Grant. If you cease to be an employee of Schwab and its subsidiaries by reason of your retirement and have been credited with at least 15 years of service, then this option will expire on the Expiration Date specified in the Notice of Nonqualified Stock Option Grant. | |
Effect of Entitlement to Severance | If you are entitled to severance benefits under The Charles Schwab Severance Pay Plan (or any successor plan) and have signed your Severance Agreement, then vesting of this option shall be determined under the terms of that plan. |
Cancellation of Options | To the fullest extent permitted by applicable laws, this option will immediately be cancelled and will expire in the event that Schwab terminates your employment on account of conduct contrary to the best interests of Schwab, including, without limitation, conduct constituting a violation of law or Schwab policy, fraud, theft, conflict of interest, dishonesty or harassment. The determination whether your employment has been terminated on account of conduct inimical to the best interests of Schwab shall be made by Schwab in its sole discretion. |
Withholding Taxes and Stock Withholding | You will not be allowed to exercise this option unless you make arrangements acceptable to Schwab to pay any applicable withholding of income and employment taxes that may be due as a result of the option exercise. These arrangements may include without limitation withholding Shares that otherwise would be issued to you when you exercise this option. In the event you do not elect to pay applicable withholding taxes in cash, Schwab shall withhold Shares. Schwab may withhold the number of whole Shares, valued at the fair market value on the applicable date, required to satisfy such applicable withholding taxes. Schwab will round up to the next whole Share to cover the applicable withholding taxes, and any amounts in excess of the applicable withholding taxes resulting from rounding up to the next whole Share will be added to your federal income tax withholdings. |
Restrictions on Exercise and Issuance or Transfer of Shares | You cannot exercise this option and no Shares may be issued under this option if the issuance of Shares at that time would violate any applicable law, regulation, or rule. Schwab may impose restrictions upon the sale, pledge, or other transfer of Shares (including the placement of appropriate legends on stock certificates) if, in the judgment of Schwab and its counsel, such restrictions are necessary or desirable to comply with applicable law, regulations or rules. |
No | You, or your estate or heirs, have no rights as a stockholder of Schwab |
Stockholder Rights | until you have exercised this option by giving the required notice to Schwab and paying the exercise price. No adjustments are made for dividends or other rights if the applicable record date occurs before you exercise this option, except as described in the Plan. |
No Right to Employment | Nothing in this Agreement will be construed as giving you the right to be retained as an employee, consultant, or director of Schwab and its subsidiaries for any specific duration or at all. |
Transfer of Option | In general, only you may exercise this option prior to your death. You may not transfer or assign this option, except as provided below. For instance, you may not sell this option or use it as security for a loan. If you attempt to do any of these things, this option will immediately become invalid. |
You may dispose of this option in your will or in a beneficiary designation. You may designate one or more beneficiaries by filing a beneficiary designation form with Schwab. You may change your beneficiary designation by filing a new form with Schwab at any time prior to your death. If you do not designate a beneficiary or if your designated beneficiary predeceases you, then your options will be exercisable by your estate. Schwab may, in its sole discretion, allow you to transfer this option under a domestic relations order in settlement of marital or domestic property rights. In order to transfer this option, you and the transferee(s) must follow the procedures prescribed by Schwab, and the transferee(s) must follow the terms of this Agreement. | |
Limitations on Payments | If a payment from the Plan would constitute an excess parachute payment or if there have been certain securities law violations, then your grant may be reduced or cancelled and you may be required to disgorge any profit that you have realized from your grant. If a disqualified individual receives a payment or transfer under the Plan that would constitute an excess parachute payment under the Internal Revenue Code of 1986, as amended (the “Code”), such payment will be reduced, as described below. Generally, someone is a “disqualified individual” under section 280G if he or she is (a) an officer of Schwab, (b) a member of the group consisting of the highest paid 1% of the employees of Schwab or, if less, the highest paid 250 employees of Schwab, or (c) a 1% stockholder of Schwab. For purposes of this section on “Limitation on Payments,” the term “Schwab " will include affiliated corporations to the extent determined by the Auditors (as defined below) in accordance with section |
280G(d)(5) of the Code. In the event that the independent auditors most recently selected by the Board (the “Auditors”) determine that any payment or transfer in the nature of compensation to or for your benefit, whether paid or payable (or transferred or transferable) pursuant to the terms of the Plan or otherwise (a “Payment”), would be nondeductible for federal income tax purposes because of the provisions concerning “excess parachute payments” in section 280G of the Code, then the aggregate present value of all Payments will be reduced (but not below zero) to the Reduced Amount (as defined below); provided, however, that the Compensation Committee may specify in writing that the grant will not be so reduced and will not be subject to reduction under this section. For this purpose, the “Reduced Amount” will be the amount, expressed as a present value, which maximizes the aggregate present value of the Payments without causing any Payment to be nondeductible by Schwab because of section 280G of the Code. If the Auditors determine that any Payment would be nondeductible because of section 280G of the Code, then Schwab will promptly give you notice to that effect and a copy of the detailed calculation and of the Reduced Amount. You may then elect, in your discretion, which and how much of the Payments will be eliminated or reduced (as long as after such election, the aggregate present value of the Payments equals the Reduced Amount, and your election is consistent with any mandatory eliminations or reductions that apply under other agreements or the Plan). You will advise Schwab in writing of your election within 10 days of receipt of the notice. If you do not make such an election within the 10-day period, then Schwab may elect which and how much of the Payments will be eliminated or reduced (as long as after such election the aggregate present value of the Payments equals the Reduced Amount). Schwab will notify you promptly of its election. Present value will be determined in accordance with section 280G(d)(4) of the Code. The Auditors’ determinations will be binding upon you and Schwab and will be made within 60 days of the date when a Payment becomes payable or transferable. As promptly as practicable following these determinations and elections, Schwab will pay or transfer to or for your benefit such amounts as are then due to you under the Plan, and will promptly pay or transfer to or for your benefit in the future such amounts as become due to you under the Plan. As a result of uncertainty in the application of section 280G of the |
Code at the time of an initial determination by the Auditors, it is possible that Payments will have been made by Schwab that should not have been made (an “Overpayment”) or that additional Payments that will not have been made by Schwab could have been made (an “Underpayment”) consistent in each case with the calculation of the Reduced Amount. In the event the Auditors, based upon the assertion of a deficiency by the Internal Revenue Service against you or Schwab that the Auditors believe has a high probability of success determine that an Overpayment has been made, such Overpayment will be treated for all purposes as a loan to you that you will repay to Schwab on demand, together with interest at the applicable federal rate provided in section 7872(f)(2) of the Code. However, no amount will be payable by you to Schwab if and to the extent that such payment would not reduce the amount that is subject to taxation under section 4999 of the Code. In the event the Auditors determine that an Underpayment has occurred, such Underpayment will promptly be paid or transferred by Schwab to or for your benefit, together with interest at the applicable federal rate provided in section 7872(f)(2) of the Code. | |
Plan Administration | The Plan administrator has discretionary authority to make all determinations related to this option and to construe the terms of the Plan, the Notice of Nonqualified Stock Option Grant, and this Agreement. The Plan administrator’s determinations are conclusive and binding on all persons, and they are entitled to deference upon any review. |
Adjustments | In the event of a stock split, a stock dividend or a similar change in Shares, the Compensation Committee, in its discretion, may adjust the number of Shares covered by this option and the exercise price per Share. |
Severability | In the event that any provision of this Agreement is held invalid or unenforceable, the provision will be severable from, and such invalidity or unenforceability will not be construed to have any effect on, the remaining provisions of this Agreement. |
Applicable Law | This Agreement will be interpreted and enforced under the laws of the State of Delaware (without regard to their choice-of-law provisions), as such laws are applied to contracts entered into and performed in Delaware. |
The Plan and Other Agreements | The text of the Plan is incorporated in this Agreement by reference. This Agreement (including the Additional Terms and Conditions for Non-U.S. Recipients and the Country-Specific Provisions), the Notice of Nonqualified Stock Option Grant, and the Plan constitute the entire understanding between you and Schwab regarding this option. Any |
prior agreements, commitments or negotiations concerning this option are superseded. This Agreement may be amended only by another written agreement approved by the Compensation Committee and signed by both parties. If there is any inconsistency or conflict between any provision of this Agreement and the Plan, the terms of the Plan will control. Nothing in this Agreement gives you the ability to negotiate or change the key terms and conditions described above, in the Notice of Nonqualified Stock Option Grant and in the Plan. |
(1) | the Plan is established voluntarily by Schwab, it is discretionary in nature and it may be modified, amended, suspended or terminated by Schwab at any time, to the extent permitted by the Plan; |
(2) | the grant of this option is exceptional, voluntary and occasional and does not create any contractual or other right to receive future grants of options, or benefits in lieu of options, even if options have been granted in the past; |
(3) | all decisions with respect to future options or other grants, if any, will be at the sole discretion of Schwab; |
(4) | you are voluntarily participating in the Plan; |
(5) | this option, any Shares acquired under this option, and the income and value of same, are not intended to replace any pension rights or compensation; |
(6) | this option and any Shares acquired under this option, and the income and value of same, are not part of normal or expected compensation for any purpose, including calculating any severance, resignation, termination, redundancy, dismissal, end-of-service payments, bonuses, holiday pay, long-service awards, pension or retirement or welfare benefits or similar mandatory payments; |
(7) | unless otherwise agreed with Schwab, this option and the Shares acquired under this option, and the income and value of same, are not granted as consideration for, or in connection with, the service you may provide as a director of a subsidiary of Schwab; |
(8) | the future value of the underlying Shares is unknown, indeterminable and cannot be predicted with certainty; |
(9) | if the underlying Shares do not increase in value, this option will have no value; |
(10) | if you exercise this option and acquire Shares, the value of such Shares may increase or decrease in value, even below the exercise price; |
(11) | for purposes of this option, your employment or service relationship will be considered terminated as of the date you are no longer actively providing services to Schwab and its subsidiaries (regardless of the reason for such termination and whether or not later found to be invalid or in breach of employment laws in the jurisdiction where you are employed or the terms of your employment agreement, if any), and unless otherwise expressly provided in this Agreement or determined by Schwab, (i) your right to vest in this option under the Plan, if any, will terminate as of such date and will not be extended by any notice period (e.g., your period of service would not include any contractual notice period or any period of “garden leave” or similar period mandated under employment laws in the jurisdiction where you are employed or the terms of your employment agreement, if any); and (ii) the period (if any) during which you may exercise this option after such termination of your employment or service relationship will commence on the date you cease to actively provide services and will not be extended by any notice period mandated under employment laws in the jurisdiction where you are employed or terms of your employment agreement, if any; the Plan administrator shall have the exclusive discretion to determine when you are no longer actively providing services for purposes of this option grant (including whether you may still be considered to be providing services while on a leave of absence); |
(12) | unless otherwise provided in the Plan or by Schwab in its discretion, this option and the benefits evidenced by this Agreement do not create any entitlement to have this option or any such benefits transferred to, or assumed by, another company nor to be exchanged, cashed out or substituted for, in connection with any corporate transaction affecting the Shares; and |
(13) | neither Schwab, its subsidiaries nor your Employer shall be liable for any foreign exchange rate fluctuation between your local currency and the United States Dollar that may affect the value of this option or of any amounts due to you pursuant to the exercise of this option or the subsequent sale of any Shares acquired upon exercise. |
Name of Recipient: | <first_name> <last_name> |
Total Number of Restricted Stock Units Granted: | <shares_awarded> |
Grant Date: | <award_date> |
Vesting Schedule: | So long as you remain in service in good standing and subject to the terms of the Restricted Stock Unit Agreement, the Restricted Stock Units subject to this grant will become vested and distributable on the following dates and in the following amounts, subject to the restrictions below: Number of Restricted Stock Units on Vesting Date: <vesting_schedule> |
Payment for Units | No payment is required for the Restricted Stock Units that you are receiving. Restricted Stock Units are an unfunded and unsecured obligation of The Charles Schwab Corporation (“Schwab”). |
Vesting | Subject to the provisions of this Restricted Stock Unit Agreement (“Agreement”), a Restricted Stock Unit becomes vested and distributable as of the earliest of the following: (1) The applicable Vesting Date for the Restricted Stock Unit indicated in the Notice of Restricted Stock Unit Grant. (2) Your death. (3) Your disability. (4) Your separation from service, if the separation qualifies as a retirement or a severance eligible termination (provided that vesting shall occur upon a severance eligible termination only to the extent provided in The Charles Schwab Severance Pay Plan (or any successor plan)). (5) A change in control. Unvested units will be considered “Restricted Stock Units.” If your service terminates for any reason, then your Restricted Stock Units will be forfeited to the extent that they have not vested before the termination date and do not vest as a result of the termination. This means that the Restricted Stock Units will immediately revert to Schwab. You will receive no payment for Restricted Stock Units that are forfeited. Schwab determines when your service terminates for this purpose. For all purposes of this Agreement, “service” means continuous employment as a common-law employee of Schwab or a parent corporation or subsidiary of Schwab, and “subsidiary” means a subsidiary corporation as defined in section 424(f) of the Internal Revenue Code of 1986, as amended (the “Code”). |
Definition of Fair Market Value | “Fair market value” means the average of the high and low price of a Share (as defined below) as reported on the New York Stock Exchange on the applicable determination date. |
Definition of Disability | For all purposes of this Agreement, "disability" means that you have a disability that qualifies as such under section 409A of the Code and due to which you have been determined to be eligible for benefits under Schwab’s long-term disability plan or if you are not covered by Schwab’s long-term disability plan, you are unable to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment which has lasted, or can be expected to last, for a continuous period of not less than 12 months or which can be expected to result in death as determined by Schwab in its sole discretion. |
Definition of Retirement | If you are an employee of Schwab and its subsidiaries, "retirement" means a separation from service for any reason other than death at any time after the earlier of when you attain age 55, but only if, at the time of your separation, you have been credited with at least 10 years of service or when you attain age 65, but only if, at the time of your termination, you have been credited with at least 5 years of service. The phrase "years of service" above has the same meaning given to it under The SchwabPlan Retirement Savings and Investment Plan (or any successor plan). |
Definition of Severance Eligible Termination | For all purposes of this Agreement, "severance eligible termination" means a separation from service entitling you to severance benefits when you have signed your Severance Agreement under The Charles Schwab Severance Pay Plan (or any successor plan). |
Definition of Change in Control | For all purposes of this Agreement, "change in control" means an event that qualifies as a change in control event under section 409A of the Code and as a change in control as defined in [The Charles Schwab Corporation 2013 Stock Incentive Plan] (the “Plan”). |
Definition of Separation From Service | For all purposes of this Agreement, "separation from service" means a separation from service as defined under section 409A of the Code. |
Payment of Shares | Any vested Restricted Stock Units will be paid in shares of common stock of Schwab (“Shares”) as provided herein. Shares that have become vested and distributable under this Agreement shall be distributed as follows: (1) Shares that vest and become distributable on a Vesting Date shall be distributed within 30 days of the Vesting |
Date. (2) Shares that vest and become distributable on death, disability or a change in control, shall be distributable within 90 days of such event. (3) Shares that vest and become distributable on a separation from service (either a retirement or a severance eligible termination) shall be distributed within 90 days of the separation from service. Generally, for severance eligible terminations, the distribution date shall be the "termination date" specified in the notice under The Charles Schwab Severance Pay Plan. Notwithstanding the foregoing, if at the time of your separation from service, you are a “specified employee”, you will receive your Shares six months after your separation from service. "Specified Employee" means a "specified employee" within the meaning of section 409A of the Code and any regulatory guidance promulgated thereunder, provided that in determining the compensation of individuals for this purpose, the definition of compensation in Treas. Reg. § 1.415(c)-2(d)(2) shall be used. | |
Restrictions on Restricted Stock Units | You may not sell, transfer, pledge, or otherwise dispose of any Restricted Stock Units without Schwab’s written consent. Schwab will deliver Shares to you only after the Restricted Stock Units vest and after all other terms and conditions in this Agreement have been satisfied. Schwab may, in its sole discretion, allow you to transfer these Restricted Stock Units under a domestic relations order in settlement of marital or domestic property rights. In order to transfer these Restricted Stock Units, you and the transferee(s) must follow the procedures prescribed by Schwab, and the transferee(s) must follow the terms of this Agreement. |
Delivery of Shares After Death | In the event that Shares are distributable upon your death, the Shares will be delivered to your beneficiary or beneficiaries. You may designate one or more beneficiaries by filing a beneficiary designation form with Schwab. You may change your beneficiary designation by filing a new form with Schwab at any time prior to your death. If you do not designate a beneficiary or if your designated beneficiary predeceases you, then your Shares will be delivered to your estate. |
Cancellation of Restricted Stock Units | To the fullest extent permitted by applicable laws, these Restricted Stock Units will immediately be cancelled and will expire in the event that Schwab terminates your employment on account of conduct contrary to the best interests of Schwab, including, without limitation, conduct constituting a violation of law or Schwab policy, fraud, theft, conflict of interest, dishonesty or harassment. The determination whether your employment has been terminated on account of conduct inimical to the best interests of Schwab shall be made by Schwab in its sole discretion, and will be entitled to deference upon any review. |
Restrictions on Resale | You agree not to sell any Shares at a time when applicable laws, Schwab’s policies, or an agreement between Schwab and its underwriters prohibit a sale. This restriction will apply as long as your service continues and for such period of time after the termination of your service as Schwab may specify. |
Withholding Taxes | Shares will not be distributed unless you have made acceptable arrangements to pay any applicable withholding taxes that may be due as a result of the vesting and or the distribution of the Shares. These arrangements may include withholding Shares. Schwab may withhold the number of whole Shares, valued at the fair market value on the applicable date, required to satisfy such applicable withholding taxes. Schwab will round up to the next whole Share to cover the applicable withholding taxes, and any amounts in excess of the applicable withholding taxes resulting from rounding up to the next whole Share will be added to your federal income tax withholdings. In the event you do not elect to pay applicable withholding taxes in cash, Schwab shall withhold Shares as noted above. Applicable withholding taxes due on the distribution of Shares subject to this award following termination of employment will be withheld as noted above, unless you have made acceptable arrangements to pay any applicable withholding taxes in cash. If you elect to pay applicable withholding taxes due upon the distribution of Shares in cash, you are responsible for having sufficient funds in your Schwab brokerage account to cover the applicable withholding taxes at the time they are due. Any withholding taxes due prior to distribution of Shares (e.g., under section 3121(v)(2) of the Code upon retirement eligibility) shall be paid by accelerating the vesting of and withholding of Shares payable in connection with such |
Restricted Stock Units for participants other than executive officers of Schwab (i.e., individuals holding the office of Executive Vice President or above), who shall pay such withholding taxes in cash upon Schwab’s request. Prior to the distribution of Shares, the number of Shares accelerated and withheld for withholding taxes will be rounded down to the next whole Share, and any amounts of less than the fair market value of a Share will be deducted from your pay to cover the applicable withholding taxes due prior to distribution of Shares. Participants may not make any election as to the payment of withholding taxes due prior to the distribution of Shares (e.g., under section 3121(v)(2) of the Code upon retirement eligibility). | |
No Stockholder Rights | Your Restricted Stock Units carry no voting or other stockholder rights. You have no rights as a Schwab stockholder until your Restricted Stock Units are settled by issuing Shares. |
Contribution of Par Value | On your behalf, Schwab will contribute to its capital an amount equal to the par value of the Shares issued to you. |
Dividend Equivalent Rights | If Schwab pays cash dividends on Shares, you will receive cash equal to the dividend per Share multiplied by the number of unvested Restricted Stock Units. Each such payment shall be made as soon as practicable following the payment of the actual dividend, but in no event beyond March 15 of the year following the year the actual dividend is paid. |
No Right to Remain Employee | Nothing in this Agreement will be construed as giving you the right to be retained as an employee, contingent worker, or director of Schwab and its subsidiaries for any specific duration or at all. |
Limitation on Payments | If a payment from the Plan would constitute an excess parachute payment under section 280G of the Code or if there have been certain securities law violations, then your grant may be reduced or forfeited and you may be required to disgorge any profit that you have realized from your grant. If a disqualified individual receives a payment or transfer under the Plan that would constitute an excess parachute payment under section 280G of the Code, such payment will be reduced, as described below. Generally, someone is a “disqualified individual” under section 280G if he or she is (a) an officer of Schwab, (b) a member of the group consisting of the highest paid 1% of the employees of Schwab or, if less, |
the highest paid 250 employees of Schwab, or (c) a 1% stockholder of Schwab. For purposes of this section on “Limitation on Payments,” the term “Schwab" will include affiliated corporations to the extent determined by the independent auditors most recently selected by the Board of Directors (the “Auditors”) in accordance with section 280G(d)(5) of the Code. In the event that the Auditors determine that any payment or transfer in the nature of compensation to or for your benefit, whether paid or payable (or transferred or transferable) pursuant to the terms of the Plan or otherwise (a “Payment”), would be nondeductible for federal income tax purposes because of the provisions concerning “excess parachute payments” in section 280G of the Code, then the aggregate present value of all Payments will be reduced (but not below zero) to the Reduced Amount (as defined below); provided, however, that the Compensation Committee (the “Compensation Committee”) of the Board of Directors may specify in writing that the grant will not be so reduced and will not be subject to reduction under this section. For this purpose, the “Reduced Amount” will be the amount, expressed as a present value, which maximizes the aggregate present value of the Payments without causing any Payment to be nondeductible by Schwab because of section 280G of the Code. If the Auditors determine that any Payment would be nondeductible because of section 280G of the Code, then Schwab will promptly give you notice to that effect and a copy of the detailed calculation of the Reduced Amount. The Auditors will determine which and how much of the Payments will be eliminated or reduced (such that the aggregate present value of the Payments equals the Reduced Amount and is consistent with any mandatory eliminations or reductions that apply under other agreements or the Plan). Schwab will notify you promptly of the Auditor's determination. Present value will be determined in accordance with section 280G(d)(4) of the Code. The Auditors’ determinations will be binding upon you and Schwab and will be made within 60 days of the date when a Payment becomes payable or transferable. As a result of uncertainty in the application of section 280G of the Code at the time of an initial determination by the Auditors, it is possible that Payments will have been made by Schwab that should not have been made (an “Overpayment”) |
or that additional Payments that will not have been made by Schwab could have been made (an “Underpayment”) consistent in each case with the calculation of the Reduced Amount. In the event the Auditors, based upon the assertion of a deficiency by the Internal Revenue Service against you or Schwab that the Auditors believe has a high probability of success, determine that an Overpayment has been made, the amount of such Overpayment will be paid by you to Schwab on demand, together with interest at the applicable federal rate provided in section 7872(f)(2) of the Code. However, no amount will be payable by you to Schwab if and to the extent that such payment would not reduce the amount that is subject to taxation under section 4999 of the Code. In the event the Auditors determine that an Underpayment has occurred, such Underpayment will promptly be paid or transferred by Schwab to or for your benefit, together with interest at the applicable federal rate provided in section 7872(f)(2) of the Code, provided that no such Underpayment related to Shares distributable under this Agreement shall be paid beyond the deadline for making such payments under section 409A of the Code. | |
Plan Administration | The Plan administrator has discretionary authority to make all determinations related to this grant and to construe the terms of the Plan, the Notice of Restricted Stock Unit Grant and this Agreement. The Plan administrator’s determinations are conclusive and binding on all persons, and they are entitled to deference upon any review. |
Adjustments | In the event of a stock split, a stock dividend or a similar change in the Shares, the number of Restricted Stock Units that remain subject to forfeiture will be adjusted accordingly. |
Severability | In the event that any provision of this Agreement is held invalid or unenforceable, the provision will be severable from, and such invalidity or unenforceability will not be construed to have any effect on, the remaining provisions of this Agreement. |
Applicable Law | This Agreement will be interpreted and enforced under the laws of the State of Delaware (without regard to their choice-of-law provisions), as such laws are applied to contracts entered into and performed in Delaware. |
The Plan and Other Agreements | The text of the Plan is incorporated in this Agreement by reference. This Agreement (including the Additional Terms and Conditions for Non-U.S. Recipients and the Country-Specific Provisions), the Notice of Restricted Stock Unit |
Grant, and the Plan constitute the entire understanding between you and Schwab regarding this grant. Any prior agreements, commitments or negotiations concerning this grant are superseded. This Agreement may be amended only by another written agreement, signed by both parties and approved by the Compensation Committee. If there is any inconsistency or conflict between any provision of this Agreement and the Plan, the terms of the Plan will control. |
(1) | the Plan is established voluntarily by Schwab, it is discretionary in nature and it may be modified, amended, suspended or terminated by Schwab at any time, to the extent permitted by the Plan; |
(2) | the grant of the Restricted Stock Units is exceptional, voluntary and occasional and does not create any contractual or other right to receive future grants of Restricted Stock Units, or benefits in lieu of Restricted Stock Units, even if Restricted Stock Units have been granted in the past; |
(3) | all decisions with respect to future Restricted Stock Units or other grants, if any, will be at the sole discretion of Schwab; |
(4) | you are voluntarily participating in the Plan; |
(5) | the Restricted Stock Units, the Shares subject to the Restricted Stock Units, and the income and value of same, are not intended to replace any pension rights or compensation; |
(6) | the Restricted Stock Units and the Shares subject to the Restricted Stock Units, and the income and value of same, are not part of normal or expected compensation for any purpose, including calculating any severance, resignation, termination, redundancy, dismissal, end-of-service payments, bonuses, holiday pay, long-service awards, pension or retirement or welfare benefits or similar mandatory payments; |
(7) | unless otherwise agreed with Schwab, the Restricted Stock Units and the Shares subject to the Restricted Stock Units, and the income and value of same, are not granted as consideration for, or in connection with, the service you may provide as a director of a subsidiary of Schwab; |
(8) | the future value of the underlying Shares is unknown, indeterminable and cannot be predicted with certainty; |
(9) | for purposes of the Restricted Stock Units, your service will be considered terminated as of the date you are no longer actively providing services to Schwab and its subsidiaries (regardless of the reason for such termination and whether or not later found to be invalid or in breach of employment laws in the jurisdiction where you are employed or the terms of your employment agreement, if any), and unless otherwise expressly provided in this Agreement or determined by Schwab, your right to vest in the Restricted Stock Units under the Plan, if any, will terminate as of such date and will not be extended by any |
(10) | unless otherwise provided in the Plan or by Schwab in its discretion, the Restricted Stock Units and the benefits evidenced by this Agreement do not create any entitlement to have the Restricted Stock Units or any such benefits transferred to, or assumed by, another company nor to be exchanged, cashed out or substituted for, in connection with any corporate transaction affecting the Shares; and |
(11) | neither Schwab, its subsidiaries nor your Employer shall be liable for any foreign exchange rate fluctuation between your local currency and the United States Dollar that may affect the value of the Restricted Stock Units or of any amounts due to you pursuant to the settlement of the Restricted Stock Units or the subsequent sale of any Shares acquired upon settlement. |
Year Ended December 31, | 2017 | 2016 | 2015 | 2014 | 2013 | |||||||||||||||
Earnings before taxes on earnings | $ | 3,650 | $ | 2,993 | $ | 2,279 | $ | 2,115 | $ | 1,705 | ||||||||||
Fixed charges | ||||||||||||||||||||
Interest expense: | ||||||||||||||||||||
Bank deposits | $ | 148 | 37 | 29 | 30 | 31 | ||||||||||||||
Payables to brokerage clients | 16 | 3 | 2 | 2 | 3 | |||||||||||||||
Short-term borrowings | 41 | 9 | — | — | — | |||||||||||||||
Long-term debt | 119 | 104 | 92 | 73 | 69 | |||||||||||||||
Other | 18 | 18 | 9 | (3 | ) | 2 | ||||||||||||||
Total | 342 | 171 | 132 | 102 | 105 | |||||||||||||||
Interest portion of rental expense | 99 | 88 | 77 | 71 | 69 | |||||||||||||||
Total fixed charges (A) | 441 | 259 | 209 | 173 | 174 | |||||||||||||||
Earnings before taxes on earnings and fixed charges (B) | $ | 4,091 | $ | 3,252 | $ | 2,488 | $ | 2,288 | $ | 1,879 | ||||||||||
Ratio of earnings to fixed charges (B) ÷ (A) (1) | 9.3 | 12.6 | 11.9 | 13.2 | 10.8 | |||||||||||||||
Ratio of earnings to fixed charges, excluding bank deposits and payables to brokerage clients interest expense (2) | 14.2 | 14.7 | 13.8 | 16.0 | 13.2 | |||||||||||||||
Total fixed charges | $ | 441 | $ | 259 | $ | 209 | $ | 173 | $ | 174 | ||||||||||
Preferred stock dividends and other (3) | 270 | 227 | 131 | 96 | 97 | |||||||||||||||
Total fixed charges and preferred stock dividends and other (C) | $ | 711 | $ | 486 | $ | 340 | $ | 269 | $ | 271 | ||||||||||
Ratio of earnings to fixed charges and preferred stock dividends and other (B) ÷ (C) (1) | 5.8 | 6.7 | 7.3 | 8.5 | 6.9 | |||||||||||||||
Ratio of earnings to fixed charges and preferred stock dividends and other, excluding bank deposits and payables to brokerage clients interest expense (2) | 7.2 | 7.2 | 8.0 | 9.5 | 7.8 |
Subsidiaries of the Registrant |
Pursuant to Item 601 (b)(21)(ii) of Regulation S-K, certain subsidiaries of the Registrant have been omitted which, considered in the aggregate as a single subsidiary, would not constitute a significant subsidiary (as defined in Rule 1-02(w) of Regulation S-X) as of December 31, 2017. |
The following is a listing of the significant subsidiaries of the Registrant: |
Schwab Holdings, Inc. (holding company for Charles Schwab & Co., Inc.), a Delaware corporation |
Charles Schwab & Co., Inc., a California corporation |
Charles Schwab Bank, a Nevada corporation |
Charles Schwab Investment Management, Inc., a Delaware corporation |
Registration Statement No. 333-222063 | (Debt Securities, Preferred Stock, Depositary Shares, Common Stock, Purchase Contracts, Warrants, and Units Consisting of Two or More Securities) |
Registration Statement No. 333-205862 | (The Charles Schwab Corporation 2013 Stock Incentive Plan) |
Registration Statement No. 333-192893 | (The Charles Schwab Corporation Financial Consultant Career Achievement Award Program) |
Registration Statement No. 333-189553 | (The Charles Schwab Corporation 2013 Stock Incentive Plan) |
Registration Statement No. 333-175862 | (The Charles Schwab Corporation 2004 Stock Incentive Plan) |
Registration Statement No. 333-173635 | (optionsXpress Holdings, Inc. 2005 Equity Incentive Plan) |
Registration Statement No. 333-144303 | (The Charles Schwab Corporation Employee Stock Purchase Plan) |
Registration Statement No. 333-131502 | (The Charles Schwab Corporation Deferred Compensation Plan II) |
Registration Statement No. 333-101992 | (The Charles Schwab Corporation 2004 Stock Incentive Plan) |
Registration Statement No. 333-71322 | (The SchwabPlan Retirement Savings and Investment Plan) |
Registration Statement No. 333-63448 | (The Charles Schwab Corporation 2004 Stock Incentive Plan) |
Registration Statement No. 333-47107 | (The Charles Schwab Corporation 2004 Stock Incentive Plan) |
Registration Statement No. 333-44793 | (Charles Schwab Profit Sharing and Employee Stock Ownership Plan) |
/s/ Deloitte & Touche LLP |
San Francisco, California |
February 22, 2018 |
1. | I have reviewed this Annual Report on Form 10-K of The Charles Schwab Corporation; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c) | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d) | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. | The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of registrant’s board of directors (or persons performing the equivalent functions): |
a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
Date: | February 22, 2018 | /s/ Walter W. Bettinger II | |
| Walter W. Bettinger II | ||
| President and Chief Executive Officer |
a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c) | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d) | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
Date: | February 22, 2018 | /s/ Peter Crawford | |
| Peter Crawford | ||
| Executive Vice President and Chief Financial Officer |
(1) | The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and |
(2) | The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company for the periods presented therein. |
/s/ Walter W. Bettinger II | Date: | February 22, 2018 | |
Walter W. Bettinger II | |||
President and Chief Executive Officer |
/s/ Peter Crawford | Date: | February 22, 2018 | |
Peter Crawford | |||
Executive Vice President and Chief Financial Officer |
Document and Entity Information - USD ($) $ in Billions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2017 |
Jan. 31, 2018 |
Jun. 30, 2017 |
|
Document and Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2017 | ||
Document Fiscal Year Focus | 2017 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | SCHW | ||
Entity Registrant Name | SCHWAB CHARLES CORP | ||
Entity Central Index Key | 0000316709 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Common Stock, Shares Outstanding | 1,346,473,499 | ||
Entity Public Float | $ 51.2 |
Consolidated Statements of Income - USD ($) shares in Millions, $ in Millions |
12 Months Ended | |||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2017 |
Dec. 31, 2016 |
Dec. 31, 2015 |
||||||||||
Net Revenues: | ||||||||||||
Interest revenue | $ 4,624 | $ 3,493 | $ 2,657 | |||||||||
Interest expense | (342) | (171) | (132) | |||||||||
Net interest revenue | 4,282 | 3,322 | 2,525 | |||||||||
Asset management and administration fees | [1] | 3,392 | 3,055 | 2,650 | ||||||||
Trading revenue | 654 | 825 | 866 | |||||||||
Other | 290 | 271 | 328 | |||||||||
Provision for loan losses | 0 | 5 | 11 | |||||||||
Total net revenues | 8,618 | 7,478 | 6,380 | |||||||||
Expenses Excluding Interest | ||||||||||||
Compensation and benefits | 2,737 | 2,466 | 2,241 | |||||||||
Professional services | 580 | 506 | 459 | |||||||||
Occupancy and equipment | 436 | 398 | 353 | |||||||||
Advertising and market development | 268 | 265 | 249 | |||||||||
Communications | 231 | 237 | 233 | |||||||||
Depreciation and amortization | 269 | 234 | 224 | |||||||||
Regulatory fees and assessments | 179 | 144 | 107 | |||||||||
Other | 268 | 235 | 235 | |||||||||
Total expenses excluding interest | 4,968 | 4,485 | 4,101 | |||||||||
Income before taxes on income | 3,650 | 2,993 | 2,279 | |||||||||
Taxes on income | [2] | 1,296 | 1,104 | 832 | ||||||||
Net Income | 2,354 | 1,889 | 1,447 | |||||||||
Preferred stock dividends and other | [3] | 174 | 143 | 83 | ||||||||
Net Income Available to Common Stockholders | $ 2,180 | $ 1,746 | $ 1,364 | |||||||||
Weighted-Average Common Shares Outstanding: | ||||||||||||
Basic (in shares) | 1,339 | 1,324 | 1,315 | |||||||||
Diluted (in shares) | [4] | 1,353 | 1,334 | 1,327 | ||||||||
Earnings Per Common Share: | ||||||||||||
Basic (USD per share) | $ 1.63 | $ 1.32 | $ 1.04 | |||||||||
Diluted (USD per share) | 1.61 | 1.31 | 1.03 | |||||||||
Dividends Declared Per Common Share (USD per share) | $ 0.32 | $ 0.27 | $ 0.24 | |||||||||
Fee waivers | $ (10) | $ (224) | $ (672) | |||||||||
Remeasurement of net deferred tax assets | $ 46 | |||||||||||
|
Consolidated Statements of Comprehensive Income - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2017 |
Dec. 31, 2016 |
Dec. 31, 2015 |
|
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 2,354 | $ 1,889 | $ 1,447 |
Change in net unrealized gain (loss) on available for sale securities: | |||
Net unrealized gain (loss) | 13 | (44) | (477) |
Reclassification of net unrealized loss transferred to held to maturity | 227 | 0 | 0 |
Other reclassifications included in other revenue | (12) | (4) | 0 |
Change in net unrealized gain (loss) on held to maturity securities: | |||
Reclassification of net unrealized loss transferred from available for sale | (227) | 0 | 0 |
Amortization of amounts previously recorded upon transfer from available for sale | 31 | 0 | 0 |
Other | (11) | 1 | 0 |
Other comprehensive income (loss), before tax | 21 | (47) | (477) |
Income tax effect | (10) | 18 | 178 |
Other comprehensive income (loss), net of tax | 11 | (29) | (299) |
Comprehensive Income | $ 2,365 | $ 1,860 | $ 1,148 |
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions |
Dec. 31, 2017 |
Dec. 31, 2016 |
---|---|---|
Statement of Financial Position [Abstract] | ||
Cash and investments segregated and on deposit for regulatory purposes, resale agreements | $ 6,596 | $ 9,547 |
Held to maturity securities: Fair Value | $ 120,373 | $ 74,444 |
Preferred stock, par value (USD per share) | $ 0.01 | $ 0.01 |
Preferred stock, aggregate liquidation preference | $ 2,850 | $ 2,835 |
Common stock, shares authorized (shares) | 3,000,000,000 | 3,000,000,000 |
Common stock, par value (USD per share) | $ 0.01 | $ 0.01 |
Common stock, shares issued (shares) | 1,487,543,446 | 1,487,543,446 |
Treasury stock, shares (shares) | 142,210,890 | 154,793,560 |
Introduction and Basis of Presentation |
12 Months Ended |
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Dec. 31, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Introduction and Basis of Presentation | Introduction and Basis of Presentation The Charles Schwab Corporation (CSC) is a savings and loan holding company, headquartered in San Francisco, California. CSC was incorporated in 1986 and engages, through its subsidiaries, in wealth management, securities brokerage, banking, asset management, custody, and financial advisory services. Charles Schwab & Co., Inc. (CS&Co) is a securities broker-dealer with over 345 domestic branch offices in 46 states, as well as a branch in the Commonwealth of Puerto Rico. In addition, Schwab serves clients in England, Hong Kong, Singapore, and Australia through various subsidiaries. Other significant subsidiaries include Schwab Bank, a federal savings bank, and Charles Schwab Investment Management, Inc. (CSIM), the investment advisor for Schwab’s proprietary mutual funds (Schwab Funds®), and for Schwab’s exchange-traded funds (Schwab ETFs™). The accompanying consolidated financial statements include CSC and its subsidiaries. Intercompany balances and transactions have been eliminated. These consolidated financial statements have been prepared in conformity with GAAP, which require management to make certain estimates and assumptions that affect the reported amounts in the accompanying financial statements. Certain estimates relate to taxes on income and legal and regulatory reserves. Actual results may differ from those estimates. Unless otherwise indicated, the terms “Schwab,” “the Company,” “we,” “us,” or “our” mean CSC together with its consolidated subsidiaries. Principles of Consolidation Schwab evaluates all entities in which it has financial interests for consolidation, except for money market funds, which are specifically excluded from consolidation guidance. When an entity is evaluated for consolidation, Schwab determines whether its interest in the entity constitutes a controlling financial interest under either the variable interest entity (VIE) model or the voting interest entity (VOE) model. In evaluating whether Schwab’s interest in a VIE is a controlling financial interest, we consider whether our involvement, in the context of the design, purpose, and risks of the VIE, as well as any involvement of related parties, provides us with (i) the power to direct the most significant activities of the VIE and (ii) the obligation to absorb losses or receive benefits that are significant to the VIE. If both of these conditions exist, then Schwab would be the primary beneficiary of that VIE and consolidate it. Based upon the assessments for all of our interests in VIEs, there are no cases where the Company is the primary beneficiary; therefore, we are not required to consolidate any VIEs. See Note 10 for further information about VIEs. The Company consolidates all VOEs in which it has majority voting interests. Investments in entities in which Schwab does not have a controlling financial interest are accounted for under the equity method of accounting when we have the ability to exercise significant influence over operating and financing decisions of the entity. Investments in entities for which the Company does not have the ability to exercise significant influence are generally carried at cost, except for certain investments in qualified affordable housing projects which are accounted for under the proportional amortization method. All equity method, cost method, and proportional amortization method investments are included in other assets on the consolidated balance sheets. |
Summary of Significant Accounting Policies |
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Dec. 31, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Interest revenue Interest revenue is recognized as earned on interest-earning assets such as cash and cash equivalents, cash and investments segregated, receivables from brokerage clients, investment securities, and bank loans. Interest revenue from these assets is based upon average or daily balances and the applicable interest rates. Interest revenue is also recognized from securities lending activities when earned based upon the securities and amounts lent and the applicable rates. Asset management and administration fees Asset management and administration fees are recognized as services are performed. Such fees are generally based on a percentage of the daily average asset balances, which are based on quoted market prices and other observable market data. The Company’s policy is to recognize revenue subject to refunds because management can estimate refunds based on Company-specific experience. Actual refunds were immaterial for all periods presented. Trading revenue Schwab generates the majority of its trading revenue through commissions earned for executing trades for clients. Commission revenues are recognized as services are performed at the time of execution (i.e., on the trade date). Cash and cash equivalents Schwab considers all highly liquid investments that mature in three months or less from the time of acquisition and that are not segregated and on deposit for regulatory purposes to be cash equivalents. Cash and cash equivalents include money market funds, deposits with banks, certificates of deposit, commercial paper, and U.S. Treasury securities. Cash and cash equivalents also include balances that Schwab Bank maintains at the Federal Reserve Bank (FRB). Cash and investments segregated and on deposit for regulatory purposes Cash and investments segregated and on deposit for regulatory purposes include securities purchased under agreements to resell (resale agreements), which are collateralized by U.S. Government and agency securities. Resale agreements are accounted for as collateralized financing transactions that are recorded at their contractual amounts plus accrued interest. The Company obtains control of collateral with a market value equal to or in excess of the principal amount loaned and accrued interest under resale agreements. Collateral is valued daily by the Company, with additional collateral obtained to ensure full collateralization. Cash and investments segregated also include certificates of deposit and U.S. Government securities. Certificates of deposit and U.S. Government securities are recorded at fair value. Pursuant to the SEC’s Customer Protection Rule, cash balances not collateralizing margin positions and not swept to money market funds or bank deposit accounts, are segregated by Schwab for the exclusive benefit of clients. Receivables from brokerage clients Receivables from brokerage clients include margin loans to securities brokerage clients and other trading receivables from clients. Margin loans are collateralized by client securities and are carried at the amount receivable, net of an allowance for doubtful accounts. The Company monitors margin levels and requires clients to deposit additional collateral, or reduce margin positions to meet minimum collateral requirements if the fair value of the collateral changes. Receivables from brokerage clients that remain unsecured or partially secured for more than 30 days are fully reserved for in the allowance for doubtful accounts, except in the case of confirmed fraud, which is reserved immediately. Clients with margin loans have agreed to allow Schwab to pledge collateralized securities in accordance with federal regulations. The collateral is not reflected in the consolidated financial statements. The allowance for doubtful accounts for brokerage clients and related activity was immaterial for all periods presented. Other securities owned Other securities owned are recorded at fair value based on quoted market prices or other observable market data. Unrealized gains and losses are included in trading revenue. Investment securities AFS securities are recorded at fair value and unrealized gains and losses are reported, net of taxes, in AOCI included in stockholders’ equity. HTM securities are recorded at amortized cost based on the Company’s positive intent and ability to hold these securities to maturity. Realized gains and losses from sales of AFS securities are determined on a specific identification basis and are included in other revenue. Management evaluates whether investment securities are OTTI on a quarterly basis. Debt securities with unrealized losses are considered OTTI if the Company intends to sell the security or if it is more likely than not that the Company will be required to sell such security before any anticipated recovery. If management determines that a security is OTTI under these circumstances, the impairment recognized in earnings is measured as the entire difference between amortized cost and fair value. A security is also OTTI if management does not expect to recover all of the amortized cost of the security. In this circumstance, the impairment recognized in earnings represents the estimated credit loss, and is measured by the difference between the present value of expected cash flows and the amortized cost of the security. Where appropriate, models are utilized to estimate the credit loss on a discounted cash flow basis using the security’s effective interest rate. The evaluation of whether we expect to recover the amortized cost of a security is inherently judgmental. The evaluation considers multiple factors including: the magnitude and duration of the unrealized loss; the financial condition of the issuer; the payment structure of the security; external credit ratings; our internal credit ratings; for asset-backed securities, the amount of credit support provided by the structure of the security to absorb credit losses on the underlying collateral; recent events specific to the issuer and the issuer’s industry; and whether all scheduled principal and interest payments have been received. Securities borrowed and securities loaned Securities borrowed require Schwab to deliver cash to the lender in exchange for securities and are included in receivables from brokers, dealers, and clearing organizations. For securities loaned, Schwab receives collateral in the form of cash in an amount equal to or greater than the market value of securities loaned. Securities loaned are included in payables to brokers, dealers, and clearing organizations. The market value of securities borrowed and loaned are monitored, with additional collateral obtained or refunded to ensure full collateralization. Fees received or paid are recorded in interest revenue or interest expense. Bank loans and related allowance for loan losses Bank loans are recorded at their contractual principal amounts and include unamortized direct origination costs or net purchase discounts or premiums. Direct origination costs and premiums and discounts are recognized in interest revenue using the effective interest method over the contractual life of the loan and are adjusted for actual prepayments. Additionally, loans are recorded net of an allowance for loan losses. The loan portfolio includes four loan types: First Mortgages, HELOCs, PALs and other loans. We use these segments when developing and documenting our methodology for determining the allowance for loan losses. PALs are collateralized by marketable securities with liquid markets. Credit lines are over-collateralized dependent on the type of security pledged. Collateral market value is monitored on a daily basis and a borrower’s committed line may be reduced or collateral may be liquidated if the collateral is in danger of falling below specified levels. As such, the loss inherent within this portfolio is limited. Schwab records an allowance for loan losses through a charge to earnings based on our estimate of probable losses in the existing portfolio. We review the allowance for loan losses quarterly, taking into consideration current economic conditions, the composition of the existing loan portfolio, past loss experience, and risks inherent in the portfolio to ensure that the allowance for loan losses is maintained at an appropriate level. The methodology to establish an allowance for loan losses utilizes statistical models that estimate prepayments, defaults, and probable losses for the loan segments based on predicted behavior of individual loans within the segments. The methodology considers the effects of borrower behavior and a variety of factors including, but not limited to, interest rates, housing price movements as measured by a housing price index, economic conditions, estimated defaults and foreclosures measured by historical and expected delinquencies, changes in prepayment speeds, LTV ratios, past loss experience, estimates of future loss severities, borrower credit risk, and the adequacy of collateral. The methodology also evaluates concentrations in the loan types, including loan products within those types, year of origination, and geographical distribution of collateral. Probable losses are forecast using a loan-level simulation of the delinquency status of the loans over the term of the loans. The simulation starts with the current relevant risk indicators, including the current delinquent status of each loan, the estimated current LTV ratio (Estimated Current LTV) of each loan, the term and structure of each loan, current key interest rates including U.S. Treasury and LIBOR rates, and borrower FICO scores. The more significant variables in the simulation include delinquency roll rates, loss severity, housing prices, and interest rates. Delinquency roll rates (i.e., the rates at which loans transition through delinquency stages and ultimately result in a loss) are estimated from our historical loss experience adjusted for current trends and market information. Loss severity estimates are based on our historical loss experience and market trends. The estimated loss severity (i.e., loss given default) used in the allowance for loan loss methodology for HELOC loans is higher than that used in the methodology for First Mortgages. Housing price trends are derived from historical home price indices and econometric forecasts of future home values. Factors affecting the home price index include housing inventory, unemployment, interest rates, and inflation expectations. Interest rate projections are based on the current term structure of interest rates and historical volatilities to project various possible future interest rate paths. This methodology results in loss factors that are applied to the outstanding balances to determine the allowance for loan loss for each loan type. Schwab considers loan modifications in which it makes an economic concession to a borrower experiencing financial difficulty to be troubled debt restructurings (TDRs). Nonaccrual, Nonperforming and Impaired loans First Mortgages, HELOCs, PALs, and other loans are placed on nonaccrual status upon becoming 90 days past due as to interest or principal (unless the loans are well-secured and in the process of collection), or when the full timely collection of interest or principal becomes uncertain, including loans to borrowers who have filed for bankruptcy. HELOC loans secured by a second lien are placed on non-accrual status if the associated first lien is 90 days or more delinquent, regardless of the payment status of the HELOC. When a loan is placed on nonaccrual status, the accrued and unpaid interest receivable is reversed and the loan is accounted for on the cash or cost recovery method until qualifying for return to accrual status. Generally, a nonaccrual loan may be returned to accrual status when all delinquent interest and principal is repaid and the borrower demonstrates a sustained period of performance, or when the loan is both well-secured and in the process of collection and collectability is no longer doubtful. Loans on nonaccrual status and other real estate owned are considered nonperforming assets. Nonaccrual loans, other real estate owned, and TDRs are considered impaired assets, as it is probable we will not collect all amounts due. Loan Charge-Offs The Company charges off a loan in the period that it is deemed uncollectible and records a reduction in the allowance for loan losses and the loan balance. Our charge-off policy for First Mortgage and HELOC loans is to assess the value of the property when the loan has been delinquent for 180 days or has been discharged in bankruptcy proceedings, regardless of whether or not the property is in foreclosure, and charge-off the amount of the loan balance in excess of the estimated current value of the underlying property less estimated costs to sell. Equipment, office facilities, and property Equipment, office facilities, and property are recorded at cost net of accumulated depreciation and amortization, except for land, which is recorded at cost. Equipment, office facilities, and property include certain capitalized costs of acquired or internally developed software. Costs for internally developed software are capitalized when the costs relate to development of approved projects for our internal needs that result in additional functionality. Costs related to preliminary project and post-project activities are expensed as incurred. Equipment, office facilities, and property (other than land) are depreciated on a straight-line basis over their estimated useful lives. Estimated useful lives are as follows:
(1) Amortized over contractual term if less than three years. Equipment, office facilities, and property are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable. Goodwill Goodwill represents the fair value of acquired businesses in excess of the fair value of the individually identified net assets acquired. Goodwill is not amortized but is tested for impairment annually or whenever indications of impairment exist. Impairment exists when the carrying amount of goodwill exceeds its implied fair value, resulting in an impairment charge for this excess. Our annual impairment testing date is April 1st. Schwab can elect to qualitatively assess goodwill for impairment if it is more likely than not that the fair value of a reporting unit exceeds its carrying value. A qualitative assessment considers macroeconomic and other industry-specific factors, such as trends in short-term and long-term interest rates and the ability to access capital, and Company specific factors such as market capitalization in excess of net assets, trends in revenue generating activities, and merger or acquisition activity. If the Company elects to bypass qualitatively assessing goodwill, or it is not more likely than not that the fair value of a reporting unit exceeds its carrying value, management estimates the fair values of each of the Company’s reporting units (defined as the Company’s businesses for which financial information is available and reviewed regularly by management) and compares it to their carrying values. The estimated fair values of the reporting units are established using an income approach based on a discounted cash flow model that includes significant assumptions about the future operating results and cash flows of each reporting unit, a market approach which compares each reporting unit to comparable companies in their respective industries, as well as a market capitalization analysis. Intangible assets Finite-lived intangible assets are amortized over their useful lives in a manner that best reflects their economic benefit. All intangible assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable. Low-Income Housing Tax Credit (LIHTC) Investments As part of our community reinvestment initiatives, Schwab invests with other institutional investors in funds that make equity investments in multifamily affordable housing properties. The Company receives tax credits and other tax benefits for these investments. We account for investments in qualified affordable housing projects using the proportional amortization method if the applicable requirements are met. The proportional amortization method amortizes the cost of the investment over the period in which the investor expects to receive tax credits and other tax benefits, and the resulting amortization is recognized as a component of taxes on income. The carrying value of LIHTC investments is included in other assets on the consolidated balance sheets. Unfunded commitments related to LIHTC investments are included in accrued expenses and other liabilities on the consolidated balance sheets. Guarantees and indemnifications Schwab recognizes, at the inception of a guarantee, a liability equal to the estimated fair value of the obligation undertaken in issuing the guarantee. The fair values of obligations relating to guarantees are estimated based on transactions for similar guarantees or expected present value measures. Advertising and market development Advertising and market development activities include the cost to produce and distribute marketing campaigns as well as client incentives and discounts. Such costs are generally expensed when incurred. Income taxes Schwab provides for income taxes on all transactions that have been recognized in the consolidated financial statements. Accordingly, deferred tax assets are adjusted to reflect the tax rates at which future taxable amounts will likely be settled or realized. The effects of tax rate changes on future deferred tax assets and deferred tax liabilities, as well as other changes in income tax laws, are recorded in earnings in the period during which such changes are enacted. Unrecognized tax benefits, which are included in accrued expenses and other liabilities, represent the difference between positions taken on tax return filings and estimated potential tax settlement outcomes. Accrued interest relating to unrecognized tax benefits is recorded in taxes on income and penalties are recorded in other expense. Share-based compensation Share-based compensation includes employee and board of director stock options and restricted stock units. Schwab measures compensation expense for these share-based payment arrangements based on their estimated fair values as of the grant date. The fair value of the share-based award is recognized over the vesting period as share-based compensation. Share-based compensation expense is based on units expected to vest and therefore is reduced for estimated forfeitures. Per the Company’s accounting policy election, forfeitures are estimated at the time of grant and reviewed annually based on the Company’s historical forfeiture experience. Share-based compensation expense is adjusted in subsequent periods if actual forfeitures differ from estimated forfeitures. Beginning January 1, 2017, the excess tax benefits or deficiencies from the exercise of stock options and the vesting of restricted stock units are recorded in taxes on income. Fair values of assets and liabilities Fair value is defined as the price that would be received to sell an asset or the price paid to transfer a liability in an orderly transaction between market participants at the measurement date. Fair value measurement accounting guidance describes the fair value hierarchy for disclosing assets and liabilities measured at fair value based on the inputs used to value them. The fair value hierarchy maximizes the use of observable inputs and minimizes the use of unobservable inputs. Observable inputs are based on market pricing data obtained from sources independent of the Company. A quoted price in an active market provides the most reliable evidence of fair value and is generally used to measure fair value whenever available. Unobservable inputs reflect management’s judgment about the assumptions market participants would use in pricing the asset or liability. Where inputs used to measure fair value of an asset or liability are from different levels of the hierarchy, the asset or liability is categorized based on the lowest level input that is significant to the fair value measurement in its entirety. Assessing the significance of a particular input requires judgment. The fair value hierarchy includes three levels based on the objectivity of the inputs as follows:
The Company’s policy is to recognize transfers of financial instruments between levels as of the beginning of the reporting period in which a transfer occurs. Assets and liabilities measured at fair value on a recurring basis Schwab’s assets and liabilities measured at fair value on a recurring basis include certain cash equivalents, certain investments segregated and on deposit for regulatory purposes, other securities owned, and AFS securities. The Company uses the market approach to determine the fair value of assets and liabilities. When available, the Company uses quoted prices in active markets to measure the fair value of assets and liabilities. When utilizing market data and bid-ask spread, the Company uses the price within the bid-ask spread that best represents fair value. When quoted prices do not exist, the Company uses prices obtained from independent third-party pricing services to measure the fair value of investment assets. We generally obtain prices from at least three independent pricing sources for assets recorded at fair value. Our primary independent pricing service provides prices based on observable trades and discounted cash flows that incorporate observable information such as yields for similar types of securities (a benchmark interest rate plus observable spreads) and weighted-average maturity for the same or similar “to-be-issued” securities. We compare the prices obtained from the primary independent pricing service to the prices obtained from the additional independent pricing services to determine if the price obtained from the primary independent pricing service is reasonable. Schwab does not adjust the prices received from independent third-party pricing services unless such prices are inconsistent with the definition of fair value and result in a material difference in the recorded amounts. Fair value of other financial instruments Descriptions of the valuation methodologies and assumptions used to estimate the fair value of other financial instruments are described below. Our financial instruments not recorded at fair value but for which fair value can be approximated and disclosed include:
New Accounting Standards Adoption of New Accounting Standards
New Accounting Standards Not Yet Adopted
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Receivables from and Payables to Brokerage Clients |
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Dec. 31, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Receivables [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Receivables from and Payables to Brokerage Clients | Receivables from and Payables to Brokerage Clients Receivables from and payables to brokerage clients are detailed below:
At December 31, 2017 and 2016, approximately 22% and 23%, respectively, of CS&Co’s total client accounts were located in California. |
Other Securities Owned |
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Other Securities Owned [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Securities Owned | Other Securities Owned A summary of other securities owned is as follows:
Equity and bond mutual funds include inventory maintained to facilitate certain Schwab Funds and third-party mutual fund clients’ transactions, and investments made relating to our deferred compensation plan. The positions in Schwab Funds® money market funds arise from certain overnight funding of clients’ redemption, check-writing, and debit card activities. State and municipal debt obligations, equity, U.S. Government and corporate debt, and other securities include securities held to meet clients’ trading activities. |
Investment Securities |
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Investments, Debt and Equity Securities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investment Securities | Investment Securities The amortized cost, gross unrealized gains and losses, and fair value of AFS and HTM securities are as follows:
(1) Approximately 42% and 47% of Asset-backed securities held as of December 31, 2017 and 2016, respectively, were Federal Family Education Loan Program Asset-Backed Securities. Asset-backed securities collateralized by credit cards represented approximately 40% and 36% of the asset-backed securities held as of December 31, 2017 and 2016, respectively. (2) As of December 31, 2017 and 2016, approximately 41% and 49%, respectively, of the total AFS and HTM investments in Corporate debt securities and Commercial paper were issued by institutions in the financial services industry. As of December 31, 2017 and 2016, approximately 22% and 19% of the holdings of these securities were issued by institutions in the information technology industry. The increase in the HTM portfolio at December 31, 2017 compared to December 31, 2016 was primarily attributable to the transfer of $24.7 billion of investment securities from the AFS category to the HTM category during the first quarter of 2017. These securities had a total net unrealized loss of $227 million before income tax in AOCI on the date of transfer. The transfer was made to mitigate the potential volatility in regulatory capital from changes in market values in the AFS securities portfolio and the related impact to AOCI once Schwab crosses $250 billion in consolidated assets. The year after Schwab surpasses $250 billion in consolidated assets, it can no longer exclude AOCI from regulatory capital. The transfer included U.S. agency mortgage-backed securities, asset-backed securities, corporate debt securities, and U.S. state and municipal securities. The unrealized holding gains and losses on the date of transfer, are reported as a separate component of AOCI and as an adjustment to the purchase premium and discount on the securities transferred. The separate component of AOCI will be amortized or accreted into interest income over the remaining life of the securities transferred, offsetting the revised premium or discount amortization or accretion on the transferred assets. Schwab Bank maintains a secured credit facility with the FHLB, and certain investment securities are pledged as collateral in order to secure borrowing capacity. At December 31, 2017, the Company had pledged securities with a fair value of $24.2 billion with the FHLB. Schwab Bank also pledges certain investment securities as collateral to secure borrowing capacity at the FRB discount window, and had pledged securities with a fair value of $2.5 billion as collateral for this facility at December 31, 2017. In addition, Schwab Bank pledges securities issued by federal agencies to secure certain trust deposits. The fair value of these pledged securities was $923 million at December 31, 2017. Securities with unrealized losses, aggregated by category and period of continuous unrealized loss, are as follows:
(1) The number of investment positions with unrealized losses totaled 251 for AFS securities and 938 for HTM securities. (2) The number of investment positions with unrealized losses totaled 627 for AFS securities and 612 for HTM securities. At December 31, 2017, substantially all securities in the investment portfolios were rated investment grade. U.S. agency mortgage-backed securities do not have explicit credit ratings; however, management considers these to be of the highest credit quality and rating given the guarantee of principal and interest by the U.S. government or U.S. government-sponsored enterprises. Management evaluates whether investment securities are OTTI on a quarterly basis as described in Note 2. Amounts recognized as OTTI in earnings or other comprehensive income were immaterial in 2017, 2016, and 2015. As of December 31, 2017 and 2016, the Company did not hold any securities on which OTTI was previously recognized. The maturities of AFS and HTM securities are as follows:
(1) Mortgage-backed securities have been allocated to maturity groupings based on final contractual maturities. Actual maturities will differ from final contractual maturities because borrowers on a certain portion of loans underlying these securities have the right to prepay their obligations. (2) The weighted-average yield is computed using the amortized cost at December 31, 2017. Proceeds and gross realized gains and losses from sales of AFS securities are as follows:
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Bank Loans and Related Allowance for Loan Losses |
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Receivables [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Bank Loans and Related Allowance for Loan Losses | Bank Loans and Related Allowance for Loan Losses The composition of bank loans and delinquency analysis by loan type is as follows:
(1) First Mortgages and HELOCs include unamortized premiums and discounts and direct origination costs of $77 million and $78 million at December 31, 2017 and 2016, respectively. (2) At December 31, 2017 and 2016, 48% of the First Mortgage and HELOC portfolios were concentrated in California. These loans have performed in a manner consistent with the portfolio as a whole. (3) There were no loans accruing interest that were contractually 90 days or more past due at December 31, 2017 or 2016. Schwab Bank maintains a secured credit facility with the FHLB and loan collateral, including First Mortgages and HELOCs, is pledged at the FHLB in order to secure borrowing capacity. The amount of loan collateral pledged was $11.1 billion at December 31, 2017. Substantially all of the bank loans were collectively evaluated for impairment at both December 31, 2017 and 2016. Changes in the allowance for loan losses were as follows:
(1) All PALs were fully collateralized by securities with fair values in excess of borrowings at December 31, 2017, 2016, and 2015. A summary of impaired bank loan related assets is as follows:
(1) Nonaccrual loans include nonaccrual troubled debt restructurings. (2) Included in Other assets on the consolidated balance sheets. Credit Quality In addition to monitoring delinquency, Schwab monitors the credit quality of First Mortgages and HELOCs by stratifying the portfolios by the following:
Borrowers’ FICO scores are provided by an independent third-party credit reporting service and were last updated in December 2017. The Origination LTV and Estimated Current LTV for a HELOC include any first lien mortgage outstanding on the same property at the time of the HELOC’s origination. The Estimated Current LTV for each loan is estimated by reference to a home price appreciation index. The credit quality indicators of the bank loan portfolio are detailed below:
(1) The Utilization Rate is calculated using the outstanding balance divided by the associated total line of credit. (2) Represents the LTV for the full line of credit (drawn and undrawn). N/A Not applicable.
At December 31, 2017, First Mortgage loans of $9.0 billion had adjustable interest rates. Substantially all of these mortgages have initial fixed interest rates for three to ten years and interest rates that adjust annually thereafter. Approximately 33% of the balance of these mortgages consisted of loans with interest-only payment terms. The interest rates on approximately 58% of the balance of these interest-only loans are not scheduled to reset for three or more years. Schwab’s mortgage loans do not include interest terms described as temporary introductory rates below current market rates. The HELOC product has a 30-year loan term with an initial draw period of ten years from the date of origination. After the initial draw period, the balance outstanding at such time is converted to a 20-year amortizing loan. The interest rate during the initial draw period and the 20-year amortizing period is a floating rate based on the prime rate plus a margin. HELOCs that convert to an amortizing loan may experience higher delinquencies and higher loss rates than those in the initial draw period. The allowance for loan loss methodology takes this increased inherent risk into consideration. The following table presents when current outstanding HELOCs will convert to amortizing loans:
At December 31, 2017, $1.5 billion of the HELOC portfolio was secured by second liens on the associated properties. Second lien mortgage loans typically possess a higher degree of credit risk given the subordination to the first lien holder in the event of default. In addition to the credit monitoring activities described previously, Schwab also monitors credit risk by reviewing the delinquency status of the first lien loan on the associated property. At December 31, 2017, the borrowers on approximately 38% of HELOC loan balances outstanding only paid the minimum amount of interest due. |
Equipment, Office Facilities, and Property |
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Property, Plant and Equipment [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equipment, Office Facilities, and Property | Equipment, Office Facilities, and Property Equipment, office facilities, and property are detailed below:
Depreciation and amortization expense for equipment, office facilities, and property was $232 million, $197 million, and $179 million in 2017, 2016, and 2015, respectively. |
Intangible Assets and Goodwill |
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Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Intangible Assets and Goodwill | Intangible Assets and Goodwill Intangible assets and goodwill are detailed below:
Amortization expense for intangible assets was $37 million in both 2017 and 2016, and $45 million in 2015. Estimated future annual amortization expense for intangible assets as of December 31, 2017, is as follows:
The changes in the carrying amount of goodwill, as allocated to our reportable segments for purposes of testing goodwill for impairment are presented in the following table:
In 2017, Schwab elected to bypass the qualitative goodwill impairment assessment. As of April 1, 2017, we have determined through quantitative testing that the fair value significantly exceeded the carrying value of each of the reporting units, and concluded that goodwill was not impaired. Schwab did not recognize any goodwill impairment in any of the years presented. |
Other Assets |
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Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Assets | Other Assets The components of other assets are as follows:
(1) Accounts receivable includes accrued service fee income and a receivable from our loan servicer. (2) Investments in stock of the FHLB can only be sold to the issuer at its par value. Any cash dividends received from these investments are recognized as interest income in the consolidated statements of income. (3) Predominantly CRA-related, including LIHTC investments. |
Variable Interest Entities |
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Variable Interest Entities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Variable Interest Entities | Variable Interest Entities As of December 31, 2017 and 2016, all of Schwab’s involvement with VIEs is through Schwab Bank’s CRA-related investments and most of those related to LIHTC investments. As part of Schwab Bank’s community reinvestment initiatives, Schwab Bank invests with other institutional investors in funds that make equity investments in multifamily affordable housing properties. Schwab Bank receives tax credits and other tax benefits for these investments. Schwab Bank’s LIHTC investments are accounted for using the proportional amortization method which amortizes the cost of the investment over the period in which the investor expects to receive tax credits and other tax benefits, and the resulting amortization is included in taxes on income on the consolidated statements of income. Aggregate assets, liabilities and maximum exposure to loss The aggregate assets, liabilities, and maximum exposure to loss from those VIEs in which Schwab holds a variable interest, but as to which we have concluded it is not the primary beneficiary, are summarized in the table below:
(1) Aggregate assets and aggregate liabilities are included in other assets and accrued expenses and other liabilities, respectively, on the consolidated balance sheets. (2) Other CRA investments are recorded using either the cost method, equity method, or as HTM securities. Aggregate assets are included in other assets, HTM securities, or bank loans – net on the consolidated balance sheets. Schwab’s maximum exposure to loss would result from the loss of the investments, including any committed amounts. During the years ended December 31, 2017 and 2016, Schwab did not provide or intend to provide financial or other support to the VIEs that it was not contractually required to provide. Schwab Bank’s funding of these remaining commitments is dependent upon the occurrence of certain conditions, and Schwab Bank expects to pay substantially all of these commitments between 2018 and 2021. |
Bank Deposits |
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Banking and Thrift [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Bank Deposits | Bank Deposits Bank deposits consist of interest-bearing and non-interest-bearing deposits as follows:
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Borrowings |
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Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Borrowings | Borrowings CSC’s senior notes are unsecured obligations and rank equally with the other unsecured senior debt. CSC may redeem some or all of the senior notes of each series prior to their maturity, subject to certain restrictions, and the payment of an applicable make-whole premium in certain instances. Interest is payable semi-annually for the senior notes. The following table lists long-term debt by instrument outstanding as of December 31, 2017 and 2016.
(1) Redeemed on February 8, 2018. See Note 25. (2) Schwab has a finance lease obligation related to an office building and land under a 20-year lease. The remaining finance lease obligation is being reduced by a portion of the lease payments over the remaining lease term through June 30, 2024. Annual maturities on long-term debt outstanding at December 31, 2017, are as follows:
Short-term borrowings: Schwab Bank maintains a secured credit facility with the FHLB. Amounts available under this facility are dependent on the amount of Schwab Bank’s First Mortgages, HELOCs, and the fair value of certain of Schwab Bank’s investment securities that are pledged as collateral. As of December 31, 2017, the collateral pledged by Schwab Bank provided a total borrowing capacity of $32.3 billion of which $15.0 billion was outstanding. No amounts were outstanding under this facility as of December 31, 2016. The Company could increase its borrowing capacity by pledging additional securities. As a condition of the FHLB borrowings, Schwab Bank is required to hold FHLB stock, with the investment recorded in other assets on the consolidated balance sheets. The investment in FHLB was $405 million and $81 million at December 31, 2017 and 2016, respectively. |
Commitments and Contingencies |
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Commitments and Contingencies | Commitments and Contingencies Loan Portfolio: Schwab Bank provides a co-branded loan origination program for Schwab Bank clients (the Program) with Quicken Loans, Inc. (Quicken Loans®). Pursuant to the Program, Quicken Loans originates and services First Mortgages and HELOCs for Schwab Bank clients. Under the Program, Schwab Bank purchases certain First Mortgages and HELOCs that are originated by Quicken Loans. Schwab Bank purchased First Mortgages of $2.8 billion and $3.3 billion during 2017 and 2016, respectively. Schwab purchased HELOCs with commitments of $461 million and $440 million during 2017 and 2016, respectively. The Company’s commitments to extend credit on bank lines of credit and to purchase First Mortgages are as follows:
Operating leases: Schwab has non-cancelable operating leases for office space and equipment. Future annual minimum rental commitments under these leases, net of contractual subleases are as follows:
Certain leases contain provisions for renewal options, purchase options, and rent escalations based on increases in certain costs incurred by the lessor. Rent expense relating to operating leases was $136 million, $123 million, and $116 million in 2017, 2016, and 2015, respectively. Purchase obligations: Schwab has purchase obligations for services such as advertising and marketing, telecommunications, professional services, and hardware- and software-related agreements. The Company has purchase obligations as follows:
Guarantees and indemnifications: Schwab has clients that sell (i.e., write) listed option contracts that are cleared by the Options Clearing Corporation – a clearing house that establishes margin requirements on these transactions. We partially satisfy the margin requirements by arranging unsecured standby LOCs, in favor of the Options Clearing Corporation, which are issued by several banks. At December 31, 2017, the aggregate face amount of these LOCs totaled $225 million. There were no funds drawn under any of these LOCs at December 31, 2017. In connection with its securities lending activities, Schwab is required to provide collateral to certain brokerage clients. The Company satisfies the collateral requirements by providing cash as collateral. Schwab also provides guarantees to securities clearing houses and exchanges under standard membership agreements, which require members to guarantee the performance of other members. Under the agreements, if another member becomes unable to satisfy its obligations to the clearing houses and exchanges, other members would be required to meet shortfalls. The Company’s liability under these arrangements is not quantifiable and may exceed the cash and securities it has posted as collateral. The potential requirement for the Company to make payments under these arrangements is remote. Accordingly, no liability has been recognized for these guarantees. Legal contingencies: Schwab is subject to claims and lawsuits in the ordinary course of business, including arbitrations, class actions and other litigation, some of which include claims for substantial or unspecified damages. The Company is also the subject of inquiries, investigations, and proceedings by regulatory and other governmental agencies. Predicting the outcome of a litigation or regulatory matter is inherently difficult, requiring significant judgment and evaluation of various factors, including the procedural status of the matter and any recent developments; prior experience and the experience of others in similar cases; available defenses, including potential opportunities to dispose of a case on the merits or procedural grounds before trial (e.g., motions to dismiss or for summary judgment); the progress of fact discovery; the opinions of counsel and experts regarding potential damages; potential opportunities for settlement and the status of any settlement discussions; and potential insurance coverage and indemnification. It may not be reasonably possible to estimate a range of potential liability until the matter is closer to resolution – pending, for example, further proceedings, the outcome of key motions or appeals, or discussions among the parties. Numerous issues may have to be developed, such as discovery of important factual matters and determination of threshold legal issues, which may include novel or unsettled questions of law. Reserves are established or adjusted or further disclosure and estimates of potential loss are provided as the matter progresses and more information becomes available. Schwab believes it has strong defenses in all significant matters currently pending and is contesting liability and any damages claimed. Nevertheless, some of these matters may result in adverse judgments or awards, including penalties, injunctions or other relief, and the Company may also determine to settle a matter because of the uncertainty and risks of litigation. Described below are certain matters in which there is a reasonable possibility that a material loss could be incurred or where the matter may otherwise be of significant interest to stockholders. Unless otherwise noted, the Company is unable to provide a reasonable estimate of any potential liability given the stage of proceedings in the matter. With respect to all other pending matters, based on current information and consultation with counsel, it does not appear reasonably possible that the outcome of any such matter would be material to the financial condition, operating results, or cash flows of the Company. Total Bond Market Fund Litigation: On August 28, 2008, a class action lawsuit was filed in the U.S. District Court for the Northern District of California on behalf of investors in the Schwab Total Bond Market Fund™. The lawsuit, which alleged violations of state law and federal securities law in connection with the fund’s investment policy, named CSIM, Schwab Investments (registrant and issuer of the fund’s shares), and certain current and former fund trustees as defendants. Allegations include that the fund improperly deviated from its stated investment objectives by investing in collateralized mortgage obligations (CMOs) and investing more than 25% of fund assets in CMOs and mortgage-backed securities without obtaining a fundholder vote. Plaintiff seeks unspecified compensatory and rescission damages, unspecified equitable and injunctive relief, costs, and attorneys’ fees on behalf of a putative class of investors who held shares as of August 31, 2007, and a putative class of investors who purchased the shares between September 1, 2017 and February 27, 2009. Plaintiff’s federal securities law claim and certain of plaintiff’s state law claims were dismissed. On August 8, 2011, the court dismissed plaintiff’s remaining claims with prejudice. Plaintiff appealed to the Ninth Circuit, which issued a ruling on March 9, 2015 reversing the district court’s dismissal of the case and remanding the case for further proceedings. Plaintiff filed a fourth amended complaint on June 25, 2015, and in decisions issued October 6, 2015 and February 23, 2016, the court dismissed all claims with prejudice. Plaintiff has appealed to the Ninth Circuit, where the case is again pending. Crago Order Routing Litigation: On July 13, 2016, a securities class action lawsuit was filed in the U.S. District Court for the Northern District of California on behalf of a putative class of customers executing equity orders through CS&Co. The lawsuit names CS&Co and CSC as defendants and alleges that an agreement under which CS&Co routed orders to UBS Securities LLC between July 13, 2011 and December 31, 2014 violated CS&Co’s duty to seek best execution. Plaintiffs seek unspecified damages, interest, injunctive and equitable relief, and attorneys’ fees and costs. After a first amended complaint was dismissed with leave to amend, plaintiffs filed a second amended complaint on August 14, 2017. Defendants again moved to dismiss, and in a decision issued December 5, 2017, the court denied the motion. Defendants have answered the complaint to deny all allegations, and intend to vigorously contest the lawsuit. |
Financial Instruments Subject to Off-Balance Sheet Credit Risk |
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Offsetting [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Financial Instruments Subject to Off-Balance Sheet Credit Risk | Financial Instruments Subject to Off-Balance Sheet Credit Risk Off-Balance Sheet Credit Risk Resale agreements: Schwab enters into collateralized resale agreements principally with other broker-dealers, which could result in losses in the event the counterparty fails to purchase the securities held as collateral for the cash advanced and the fair value of the securities declines. To mitigate this risk, Schwab requires that the counterparty deliver securities to a custodian, to be held as collateral, with a fair value at or in excess of the resale price. We also set standards for the credit quality of the counterparty, monitor the fair value of the underlying securities as compared to the related receivable, including accrued interest, and require additional collateral where deemed appropriate. Schwab utilizes the collateral provided under these resale agreements to meet obligations under broker-dealer client protection rules, which place limitations on its ability to access such segregated securities. For Schwab to repledge or sell this collateral, it would be required to deposit cash and/or securities of an equal amount into its segregated reserve bank accounts in order to meet its segregated cash and investment requirement. Schwab’s resale agreements are not subject to master netting arrangements. Securities lending: Schwab loans brokerage client securities temporarily to other brokers and clearing houses in connection with its securities lending activities and receives cash as collateral for the securities loaned. Increases in security prices may cause the fair value of the securities loaned to exceed the amount of cash received as collateral. In the event the counterparty to these transactions does not return the loaned securities or provide additional cash collateral, we may be exposed to the risk of acquiring the securities at prevailing market prices in order to satisfy our client obligations. Schwab mitigates this risk by requiring credit approvals for counterparties, monitoring the fair value of securities loaned, and requiring additional cash as collateral when necessary. We also borrow securities from other broker-dealers to fulfill short sales by brokerage clients and deliver cash to the lender in exchange for the securities. The fair value of these borrowed securities was $215 million and $213 million at December 31, 2017 and 2016, respectively. All of our securities lending transactions are through a program with a clearing organization, which guarantees the return of cash to us and is subject to enforceable master netting arrangements with other broker-dealers; however, we do not net securities lending transactions. Therefore, the securities loaned and securities borrowed are presented gross in the consolidated balance sheets. The following table presents information about our resale agreements and securities lending activity depicting the potential effect of rights of setoff between these recognized assets and recognized liabilities at December 31, 2017 and 2016.
(1) Included in cash and investments segregated and on deposit for regulatory purposes in the consolidated balance sheets. (2) Actual collateral was greater than or equal to 102% of the related assets. At December 31, 2017 and 2016, the fair value of collateral received in connection with resale agreements that are available to be repledged or sold was $6.7 billion and $9.8 billion, respectively. (3) Included in receivables from brokers, dealers, and clearing organizations in the consolidated balance sheets. (4) Included in payables to brokers, dealers, and clearing organizations in the consolidated balance sheets. The cash collateral received from counterparties under securities lending transactions was equal to or greater than the market value of the securities loaned at December 31, 2017 and 2016. (5) Securities loaned are predominantly comprised of equity securities held in client brokerage accounts with overnight and continuous remaining contractual maturities. Client trade settlement: Schwab is obligated to settle transactions with brokers and other financial institutions even if our clients fail to meet their obligations to us. Clients are required to complete their transactions on settlement date, generally two business days after the trade date. If clients do not fulfill their contractual obligations, we may incur losses. We have established procedures to reduce this risk by requiring deposits from clients in excess of amounts prescribed by regulatory requirements for certain types of trades, and therefore the potential to make payments under these client transactions is remote. Accordingly, no liability has been recognized for these transactions. Margin lending: Clients with margin loans have agreed to allow Schwab to pledge collateralized securities in their brokerage accounts in accordance with federal regulations. The following table summarizes the fair value of client securities that were available, under such regulations, that could have been used as collateral, and the amounts that we had pledged:
Note: Excludes amounts available and pledged for securities lending from fully-paid client securities. The fair value of fully-paid client securities available and pledged was $78 million as of December 31, 2017 and $58 million as of December 31, 2016.
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Fair Values of Assets and Liabilities |
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Values of Assets and Liabilities | Fair Values of Assets and Liabilities For a description of the fair value hierarchy and Schwab’s fair value methodologies, including the use of independent third-party pricing services, see Note 2. We did not transfer any assets or liabilities between Level 1, Level 2, or Level 3 during 2017 or 2016. In addition, the Company did not adjust prices received from the primary independent third-party pricing service at December 31, 2017 or 2016. Assets and Liabilities Measured at Fair Value on a Recurring Basis The following tables present the fair value hierarchy for assets measured at fair value on a recurring basis. Liabilities recorded at fair value were not material, and therefore are not included in the following tables:
Fair Value of Other Financial Instruments Descriptions of the valuation methodologies and assumptions used to estimate the fair value of other financial instruments are also described in Note 2. There were no significant changes in these methodologies or assumptions during 2017. The following tables present the fair value hierarchy for other financial instruments:
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Stockholders' Equity |
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Stockholders' Equity Note [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stockholders' Equity | Stockholders’ Equity CSC did not issue any shares of common stock during 2017, 2016, or 2015. CSC was authorized to issue 9,940,000 shares of preferred stock, $0.01 par value, at December 31, 2017 and 2016. The following is a summary of CSC’s non-cumulative perpetual preferred stock outstanding as of such dates:
(1) Represented by depositary shares, except for Series A (2) On December 1, 2017, CSC redeemed all of the outstanding shares of its 6.00% Non-Cumulative Preferred Stock, Series B at their stated redemption value. Dividends on CSC’s preferred stock are not cumulative and will only be paid on a series of preferred stock for a dividend period if declared by CSC’s Board of Directors. Under the terms of each series of preferred stock, CSC’s ability to pay dividends on, make distributions with respect to, or to repurchase, redeem or acquire its common stock or any preferred stock ranking on parity with or junior to the series of preferred stock, is subject to restrictions in the event that CSC does not declare and either pay or set aside a sum sufficient for payment of dividends on the series of preferred stock for the immediately preceding dividend period. Dividends on fixed-rate preferred stock are payable quarterly. Dividends on fixed-to-floating-rate preferred stock are payable semiannually while at a fixed rate, and will become payable quarterly after converting to a floating rate. Redemption Rights Each series of CSC’s stock may be redeemed at CSC’s option on any dividend payment date on or after the earliest redemption date for that series. All outstanding preferred stock series may also be redeemed following a “capital treatment event,” as described in the terms of each series. Any redemption of CSC’s preferred stock is subject to approval from the Federal Reserve. |
Accumulated Other Comprehensive Income |
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Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accumulated Other Comprehensive Income | Accumulated Other Comprehensive Income AOCI represents cumulative gains and losses that are not reflected in earnings. The components of other comprehensive income (loss) are as follows:
(1) See Note 5 for discussion of the transfer of securities from the AFS category to the HTM category during the first quarter of 2017. AOCI balances are as follows:
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Employee Incentive, Retirement, Deferred Compensation, and Career Achievement Plans |
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Retirement Benefits [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Employee Incentive, Retirement, Deferred Compensation, and Career Achievement Plans | Employee Incentive, Retirement, Deferred Compensation, and Career Achievement Plans Schwab’s share-based incentive plans provide for granting options and restricted stock units to employees, officers, and directors. In addition, we offer retirement and employee stock purchase plans to eligible employees and sponsor deferred compensation plans for eligible officers and non-employee directors. A summary of share-based compensation expense and related income tax benefit is as follows:
(1) Excludes the 2017 income tax benefit of $87 million due to the adoption of ASU 2016-09, as disclosed in Note 2. The Company issues shares for stock options and restricted stock units from treasury stock. At December 31, 2017, the Company was authorized to grant up to 44 million common shares under its existing stock incentive plans. Additionally, at December 31, 2017, the Company had 37 million shares reserved for future issuance under its employee stock purchase plan. As of December 31, 2017, there was $268 million of total unrecognized compensation cost related to outstanding stock options and restricted stock units, which is expected to be recognized through 2021 with a remaining weighted-average service period of 1.9 years for stock options, 2.4 years for restricted stock units, and 0.3 years for performance stock units. Stock Option Plan Options are granted for the purchase of shares of common stock at an exercise price not less than market value on the date of grant, and expire ten years from the date of grant. Options generally vest annually over a one- to four-year period from the date of grant. Stock option activity is summarized below:
The aggregate intrinsic value in the table above represents the difference between CSC’s closing stock price and the exercise price of each in-the-money option on the last trading day of the period presented. Information on stock options granted and exercised is presented below:
We use an option pricing model to estimate the fair value of options granted. The model takes into account the contractual term of the stock option, expected volatility, dividend yield, and risk-free interest rate. Expected volatility is based on the implied volatility of publicly-traded options on CSC’s stock. Dividend yield is based on the average historical CSC dividend yield. The risk-free interest rate is based on the yield of a U.S. Treasury zero-coupon issue with a remaining term similar to the contractual term of the option. We use historical option exercise data, which includes employee termination data, to estimate the probability of future option exercises. The Black-Scholes model is used to solve for the expected life of options. The assumptions used to value the options granted during the years presented and their expected lives were as follows:
Restricted Stock Units Restricted stock units are awards that entitle the holder to receive shares of CSC’s common stock following a vesting period. Restricted stock units are restricted from transfer or sale and generally vest annually over a three- to five-year period, while performance-based restricted stock units also require the Company achieve certain financial or other measures prior to vesting. The fair value of restricted stock units is based on the market price of the Company’s stock on the date of grant. The grant date fair value is amortized to compensation expense on a straight-line basis over the requisite service period. The fair value of the restricted stock units that vested during each of the years 2017, 2016, and 2015 was $127 million, $105 million, and $126 million, respectively. The Company’s restricted stock units activity is summarized below:
Retirement Plan Employees can participate in the Schwab’s qualified retirement plan, the SchwabPlan® Retirement Savings and Investment Plan. The Company may match certain employee contributions or make additional contributions to this plan at its discretion. The Company’s total expense was $92 million, $83 million, and $78 million in 2017, 2016, and 2015, respectively. Deferred Compensation Plans Schwab’s deferred compensation plan for officers permits participants to defer the receipt of certain cash compensation. The deferred compensation plan for non-employee directors permits participants to defer receipt of all or a portion of their director fees and to receive either a grant of stock options, or upon ceasing to serve as a director, the number of shares of CSC’s common stock that would have resulted from investing the deferred fee amount into CSC’s common stock. The deferred compensation liability was $160 million and $135 million at December 31, 2017 and 2016, respectively. FC Career Achievement Plan The FC career achievement plan was implemented in January 2014 and is a noncontributory, unfunded, nonqualified plan for eligible FCs. An FC is eligible for earned cash payments after retirement contingent upon meeting certain performance levels, tenure, age and client transitioning requirements. Allocations to the plan are completed annually by the Company and are subject to general creditors of the Company. Based on the performance level achieved, an FC will receive an award calculated as a percentage of eligible compensation. Full vesting occurs when an FC reaches 60 years of age and has at least ten years of service with the Company. The Company is using the Society of Actuaries MP-2017 mortality improvement scale for its mortality assumptions. The following table presents the changes in projected benefit obligation:
(1) This amount is recognized as a liability on the consolidated balance sheets and also depicts the accumulated benefit obligation. The following table presents the net benefit cost and assumptions used to determine the net benefit cost:
The following tables present the change in AOCI attributable to the components of the net cost and the change in benefit obligation and the amounts recognized in AOCI:
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Taxes on Income |
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Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Taxes on Income | Taxes on Income On December 22, 2017, P.L. 115-97, known as the Tax Cuts and Jobs Act (the Tax Act), was signed into law. Among other things, the Tax Act lowers the federal corporate income tax rate from 35% to 21%, effective for tax years including or commencing January 1, 2018. The SEC staff issued Staff Accounting Bulletin (SAB) 118, which provides guidance on accounting for the effects of the Tax Act. SAB 118 provides a measurement period that should not extend beyond one year from the enactment date for companies to complete the accounting under ASC 740 Income Taxes. In accordance with SAB 118, a company must reflect the income tax effects of those aspects of the Tax Act for which the accounting under ASC 740 is complete. To the extent a company’s accounting for certain income tax effects of the Tax Act is incomplete but it is able to determine a reasonable estimate, it must record a provisional estimate in the financial statements. If a company cannot determine a provisional estimate to be included in the financial statements, it should continue to apply ASC 740 on the basis of the provisions of the tax laws that were in effect immediately before the enactment of the Tax Act. In connection with our initial analysis of the impact of the Tax Act, Schwab recognized a $46 million one-time non-cash charge to taxes on income in the fourth quarter of 2017 associated with the remeasurement of net deferred tax assets and other tax adjustments related to the Tax Act. While we were able to make a reasonable estimate of the impact of the reduction in the corporate tax rate, our accounting for various elements of the Tax Act may be affected by other related analysis including, but not limited to, bonus depreciation that will allow for immediate expensing of qualified property and the state tax effect of adjustments made to federal temporary differences. As such, the impact of the Tax Act is an estimate pending further information and the analysis noted. The components of taxes on income are as follows:
The temporary differences that created deferred tax assets and liabilities are detailed below:
(1) Amounts are included in other assets on the consolidated balance sheets at both December 31, 2017 and 2016. A reconciliation of the federal statutory income tax rate to the effective income tax rate is as follows:
(1) Includes the impact of one-time charge to taxes on income associated with the Tax Act. A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:
Unrecognized tax benefits totaled $111 million and $93 million as of December 31, 2017 and 2016, respectively, $104 million and $85 million of which if recognized would affect the annual effective tax rate. Interest was accrued related to unrecognized tax benefits in tax expense and penalties in other expense. Approximately $5 million and $8 million for the payment of interest and penalties was accrued at December 31, 2017 and 2016, respectively. The Company and its subsidiaries are subject to routine examinations by the respective federal, state and applicable local jurisdictions’ taxing authorities. Federal returns for 2011 through 2016 remain subject to examination. The years open to examination by state and local governments vary by jurisdiction. |
Earnings Per Common Share |
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Earnings Per Common Share | Earnings Per Common Share EPS is computed using the two-class method. Preferred stock dividends, and undistributed earnings and dividends allocated to participating securities are subtracted from net income in determining net income available to common stockholders. Basic EPS is computed by dividing net income available to common stockholders by the weighted-average number of common shares outstanding during the period. The computation of diluted EPS is similar to the computation of basic EPS except that the denominator is increased to include the number of additional common shares that would have been outstanding if dilutive potential common shares had been issued. Dilutive potential common shares include, if dilutive, the effect of outstanding stock options and non-vested restricted stock units. EPS under the basic and diluted computations is as follows:
(1) Includes preferred stock dividends and undistributed earnings and dividends allocated to non-vested restricted stock units. (2) Antidilutive stock options and restricted stock units excluded from the calculation of diluted EPS totaled 15 million, 26 million, and 23 million shares in 2017, 2016, and 2015, respectively. |
Regulatory Requirements |
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Regulatory Requirements | Regulatory Requirements CSC is a savings and loan holding company and Schwab Bank, CSC’s primary depository institution subsidiary, is a federal savings bank. CSC is subject to examination, supervision, and regulation by the Federal Reserve. Schwab Bank is subject to examination, supervision, and regulation by the OCC, as its primary regulator, the FDIC as its deposit insurer, and the CFPB. CSC is required to serve as a source of strength for Schwab Bank. Schwab Bank is subject to various requirements and restrictions under federal and state laws, including regulatory capital requirements and requirements that restrict and govern the terms of affiliate transactions, such as extensions of credit to, or asset purchases from CSC or its other subsidiaries by Schwab Bank. In addition, Schwab Bank is required to provide notice to and may be required to obtain approval of the OCC and the Federal Reserve to declare dividends to CSC. The federal banking agencies have broad powers to enforce these regulations, including the power to terminate deposit insurance, impose substantial fines and other civil and criminal penalties, and appoint a conservator or receiver. Under the Federal Deposit Insurance Act, Schwab Bank could be subject to restrictive actions if it were to fall within one of the lowest three of five capital categories. CSC and Schwab Bank are required to maintain minimum capital levels as specified in federal banking regulations. Failure to meet the minimum levels could result in certain mandatory, and possibly additional discretionary actions by the regulators that, if undertaken, could have a direct material effect on CSC and Schwab Bank. At December 31, 2017, both CSC and Schwab Bank met all of their respective capital requirements. The regulatory capital and ratios for CSC (consolidated) and Schwab Bank are as follows:
N/A Not Applicable. Based on its regulatory capital ratios at December 31, 2017, Schwab Bank is considered well capitalized (the highest category) under its respective regulatory capital rules. There are no conditions or events since December 31, 2017 that management believes have changed Schwab Bank’s capital category. The Federal Reserve requires Schwab Bank to maintain reserve balances at the Federal Reserve based on its deposits that are considered to be transaction accounts. Schwab Bank’s average reserve requirements were $1.6 billion and $1.5 billion in 2017 and 2016, respectively. Beginning on January 1, 2016, CSC and Schwab Bank became subject to a new capital conservation buffer requirement of 0.625% of risk-weighted assets, increasing each year by 0.625% until fully implemented at 2.5% of risk-weighted assets in January 2019. The capital conservation buffer is in addition to the minimum risk-based capital requirements described above. Failure to maintain the capital conservation buffer would limit an entity’s ability to make capital distributions and discretionary bonus payments to executive officers. At December 31, 2017, both CSC’s and Schwab Bank’s capital levels exceeded the fully implemented capital conservation buffer requirement. CS&Co, a securities broker-dealer, is subject to the Uniform Net Capital Rule. CS&Co computes its net capital under the alternative method permitted by the Uniform Net Capital Rule. This method requires the maintenance of minimum net capital, as defined, of the greater of 2% of aggregate debit balances arising from client transactions or a minimum dollar requirement of $250,000, which is based on the type of business conducted by the broker-dealer. Under the alternative method, a broker-dealer may not repay subordinated borrowings, pay cash dividends, or make any unsecured advances or loans if such payment would result in a net capital amount of less than 5% of aggregate debit balances or less than 120% of its minimum dollar requirement. During 2017, optionsXpress, Inc., a wholly-owned subsidiary of the Company, was renamed as Charles Schwab Futures (CS Futures). In October 2017, CS Futures transferred all of its retail brokerage customer accounts along with the related operations to CS&Co. CS Futures was de-registered as a securities broker-dealer with the SEC but remains a registered Futures Commission Merchant with the Commodity Futures Trading Commission. Net capital and net capital requirements for CS&Co are as follows:
In accordance with the SEC Customer Protection Rule, CS&Co had portions of its cash and investments segregated for the exclusive benefit of clients at December 31, 2017. The SEC Customer Protection Rule requires broker-dealers to segregate client fully paid securities and cash balances not collateralizing margin positions and not swept to money market funds or bank deposit accounts. Amounts included in cash and investments segregated and on deposit for regulatory purposes represent actual balances on deposit, whereas cash and investments required to be segregated and on deposit for regulatory purposes at December 31, 2017 for CS&Co totaled $15.3 billion. On January 3, 2018, CS&Co deposited a net amount of $704 million of cash into its segregated reserve accounts. Cash and investments required to be segregated and on deposit for regulatory purposes at December 31, 2016 for CS&Co totaled $22.5 billion. On January 4, 2017, a net amount of $1.6 billion of cash was deposited into the segregated reserve accounts. |
Segment Information |
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Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Information | Segment Information Schwab’s two reportable segments are Investor Services and Advisor Services. Schwab structures the operating segments according to its clients and the services provided to those clients. The Investor Services segment provides retail brokerage and banking services to individual investors and retirement plan services, as well as other corporate brokerage services, to businesses and their employees. The Advisor Services segment provides custodial, trading, banking, and support services, as well as retirement business services, to independent RIAs, independent retirement advisors, and recordkeepers. Revenues and expenses are allocated to the Company’s two segments based on which segment services the client. The accounting policies of the segments are the same as those described in Note 2. For the computation of its segment information, Schwab utilizes an activity-based costing model to allocate traditional income statement line item expenses (e.g., compensation and benefits, depreciation and amortization, and professional services) to the business activities driving segment expenses (e.g., client service, opening new accounts, or business development) and a funds transfer pricing methodology to allocate certain revenues. Management evaluates the performance of its segments on a pre-tax basis. Segment assets and liabilities are not used for evaluating segment performance or in deciding how to allocate resources to segments. There are no revenues from transactions between the segments. Financial information for the segments is presented in the following table:
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The Charles Schwab Corporation - Parent Company Only Financial Statements |
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Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
The Charles Schwab Corporation - Parent Company Only Financial Statements | The Charles Schwab Corporation – Parent Company Only Financial Statements Condensed Statements of Income
(1) Includes preferred stock dividends and undistributed earnings and dividends allocated to non-vested restricted stock units. Condensed Balance Sheets
Condensed Statements of Cash Flows
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Quarterly Financial Information (Unaudited) |
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Quarterly Financial Information Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Quarterly Financial Information (Unaudited) | Quarterly Financial Information (Unaudited)
(1) Price/earnings ratio is computed by dividing the high and low market prices by diluted earnings per common share for the preceding 12-month period ending on the last day of the quarter presented. |
Subsequent Event |
12 Months Ended |
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Dec. 31, 2017 | |
Subsequent Events [Abstract] | |
Subsequent Event | Subsequent Event On February 8, 2018, CSC redeemed all of its outstanding 1.500% Senior Notes due March 10, 2018. The aggregate principal amount of the notes was $625 million. |
Summary of Significant Accounting Policies (Policy) |
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Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest revenue | Interest revenue Interest revenue is recognized as earned on interest-earning assets such as cash and cash equivalents, cash and investments segregated, receivables from brokerage clients, investment securities, and bank loans. Interest revenue from these assets is based upon average or daily balances and the applicable interest rates. Interest revenue is also recognized from securities lending activities when earned based upon the securities and amounts lent and the applicable rates. |
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Asset management and administration fees | Asset management and administration fees Asset management and administration fees are recognized as services are performed. Such fees are generally based on a percentage of the daily average asset balances, which are based on quoted market prices and other observable market data. The Company’s policy is to recognize revenue subject to refunds because management can estimate refunds based on Company-specific experience. Actual refunds were immaterial for all periods presented. |
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Trading revenue | Trading revenue Schwab generates the majority of its trading revenue through commissions earned for executing trades for clients. Commission revenues are recognized as services are performed at the time of execution (i.e., on the trade date). |
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Cash and cash equivalents | Cash and cash equivalents Schwab considers all highly liquid investments that mature in three months or less from the time of acquisition and that are not segregated and on deposit for regulatory purposes to be cash equivalents. Cash and cash equivalents include money market funds, deposits with banks, certificates of deposit, commercial paper, and U.S. Treasury securities. Cash and cash equivalents also include balances that Schwab Bank maintains at the Federal Reserve Bank (FRB). |
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Cash and investments segregated and on deposit for regulatory purposes | Cash and investments segregated and on deposit for regulatory purposes Cash and investments segregated and on deposit for regulatory purposes include securities purchased under agreements to resell (resale agreements), which are collateralized by U.S. Government and agency securities. Resale agreements are accounted for as collateralized financing transactions that are recorded at their contractual amounts plus accrued interest. The Company obtains control of collateral with a market value equal to or in excess of the principal amount loaned and accrued interest under resale agreements. Collateral is valued daily by the Company, with additional collateral obtained to ensure full collateralization. Cash and investments segregated also include certificates of deposit and U.S. Government securities. Certificates of deposit and U.S. Government securities are recorded at fair value. Pursuant to the SEC’s Customer Protection Rule, cash balances not collateralizing margin positions and not swept to money market funds or bank deposit accounts, are segregated by Schwab for the exclusive benefit of clients. |
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Receivables from brokerage clients | Receivables from brokerage clients Receivables from brokerage clients include margin loans to securities brokerage clients and other trading receivables from clients. Margin loans are collateralized by client securities and are carried at the amount receivable, net of an allowance for doubtful accounts. The Company monitors margin levels and requires clients to deposit additional collateral, or reduce margin positions to meet minimum collateral requirements if the fair value of the collateral changes. Receivables from brokerage clients that remain unsecured or partially secured for more than 30 days are fully reserved for in the allowance for doubtful accounts, except in the case of confirmed fraud, which is reserved immediately. Clients with margin loans have agreed to allow Schwab to pledge collateralized securities in accordance with federal regulations. The collateral is not reflected in the consolidated financial statements. |
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Other securities owned | Other securities owned Other securities owned are recorded at fair value based on quoted market prices or other observable market data. Unrealized gains and losses are included in trading revenue. |
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Investment Securities | Investment securities AFS securities are recorded at fair value and unrealized gains and losses are reported, net of taxes, in AOCI included in stockholders’ equity. HTM securities are recorded at amortized cost based on the Company’s positive intent and ability to hold these securities to maturity. Realized gains and losses from sales of AFS securities are determined on a specific identification basis and are included in other revenue. Management evaluates whether investment securities are OTTI on a quarterly basis. Debt securities with unrealized losses are considered OTTI if the Company intends to sell the security or if it is more likely than not that the Company will be required to sell such security before any anticipated recovery. If management determines that a security is OTTI under these circumstances, the impairment recognized in earnings is measured as the entire difference between amortized cost and fair value. A security is also OTTI if management does not expect to recover all of the amortized cost of the security. In this circumstance, the impairment recognized in earnings represents the estimated credit loss, and is measured by the difference between the present value of expected cash flows and the amortized cost of the security. Where appropriate, models are utilized to estimate the credit loss on a discounted cash flow basis using the security’s effective interest rate. The evaluation of whether we expect to recover the amortized cost of a security is inherently judgmental. The evaluation considers multiple factors including: the magnitude and duration of the unrealized loss; the financial condition of the issuer; the payment structure of the security; external credit ratings; our internal credit ratings; for asset-backed securities, the amount of credit support provided by the structure of the security to absorb credit losses on the underlying collateral; recent events specific to the issuer and the issuer’s industry; and whether all scheduled principal and interest payments have been received. |
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Securities borrowed and securities loaned | Securities borrowed and securities loaned Securities borrowed require Schwab to deliver cash to the lender in exchange for securities and are included in receivables from brokers, dealers, and clearing organizations. For securities loaned, Schwab receives collateral in the form of cash in an amount equal to or greater than the market value of securities loaned. Securities loaned are included in payables to brokers, dealers, and clearing organizations. The market value of securities borrowed and loaned are monitored, with additional collateral obtained or refunded to ensure full collateralization. Fees received or paid are recorded in interest revenue or interest expense. |
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Bank loans and related allowance for loan losses | Bank loans and related allowance for loan losses Bank loans are recorded at their contractual principal amounts and include unamortized direct origination costs or net purchase discounts or premiums. Direct origination costs and premiums and discounts are recognized in interest revenue using the effective interest method over the contractual life of the loan and are adjusted for actual prepayments. Additionally, loans are recorded net of an allowance for loan losses. The loan portfolio includes four loan types: First Mortgages, HELOCs, PALs and other loans. We use these segments when developing and documenting our methodology for determining the allowance for loan losses. PALs are collateralized by marketable securities with liquid markets. Credit lines are over-collateralized dependent on the type of security pledged. Collateral market value is monitored on a daily basis and a borrower’s committed line may be reduced or collateral may be liquidated if the collateral is in danger of falling below specified levels. As such, the loss inherent within this portfolio is limited. Schwab records an allowance for loan losses through a charge to earnings based on our estimate of probable losses in the existing portfolio. We review the allowance for loan losses quarterly, taking into consideration current economic conditions, the composition of the existing loan portfolio, past loss experience, and risks inherent in the portfolio to ensure that the allowance for loan losses is maintained at an appropriate level. The methodology to establish an allowance for loan losses utilizes statistical models that estimate prepayments, defaults, and probable losses for the loan segments based on predicted behavior of individual loans within the segments. The methodology considers the effects of borrower behavior and a variety of factors including, but not limited to, interest rates, housing price movements as measured by a housing price index, economic conditions, estimated defaults and foreclosures measured by historical and expected delinquencies, changes in prepayment speeds, LTV ratios, past loss experience, estimates of future loss severities, borrower credit risk, and the adequacy of collateral. The methodology also evaluates concentrations in the loan types, including loan products within those types, year of origination, and geographical distribution of collateral. Probable losses are forecast using a loan-level simulation of the delinquency status of the loans over the term of the loans. The simulation starts with the current relevant risk indicators, including the current delinquent status of each loan, the estimated current LTV ratio (Estimated Current LTV) of each loan, the term and structure of each loan, current key interest rates including U.S. Treasury and LIBOR rates, and borrower FICO scores. The more significant variables in the simulation include delinquency roll rates, loss severity, housing prices, and interest rates. Delinquency roll rates (i.e., the rates at which loans transition through delinquency stages and ultimately result in a loss) are estimated from our historical loss experience adjusted for current trends and market information. Loss severity estimates are based on our historical loss experience and market trends. The estimated loss severity (i.e., loss given default) used in the allowance for loan loss methodology for HELOC loans is higher than that used in the methodology for First Mortgages. Housing price trends are derived from historical home price indices and econometric forecasts of future home values. Factors affecting the home price index include housing inventory, unemployment, interest rates, and inflation expectations. Interest rate projections are based on the current term structure of interest rates and historical volatilities to project various possible future interest rate paths. This methodology results in loss factors that are applied to the outstanding balances to determine the allowance for loan loss for each loan type. Schwab considers loan modifications in which it makes an economic concession to a borrower experiencing financial difficulty to be troubled debt restructurings (TDRs). |
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Nonaccrual, nonperforming and impaired loans | Nonaccrual, Nonperforming and Impaired loans First Mortgages, HELOCs, PALs, and other loans are placed on nonaccrual status upon becoming 90 days past due as to interest or principal (unless the loans are well-secured and in the process of collection), or when the full timely collection of interest or principal becomes uncertain, including loans to borrowers who have filed for bankruptcy. HELOC loans secured by a second lien are placed on non-accrual status if the associated first lien is 90 days or more delinquent, regardless of the payment status of the HELOC. When a loan is placed on nonaccrual status, the accrued and unpaid interest receivable is reversed and the loan is accounted for on the cash or cost recovery method until qualifying for return to accrual status. Generally, a nonaccrual loan may be returned to accrual status when all delinquent interest and principal is repaid and the borrower demonstrates a sustained period of performance, or when the loan is both well-secured and in the process of collection and collectability is no longer doubtful. Loans on nonaccrual status and other real estate owned are considered nonperforming assets. Nonaccrual loans, other real estate owned, and TDRs are considered impaired assets, as it is probable we will not collect all amounts due. |
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Loan Charge-Offs | Loan Charge-Offs The Company charges off a loan in the period that it is deemed uncollectible and records a reduction in the allowance for loan losses and the loan balance. Our charge-off policy for First Mortgage and HELOC loans is to assess the value of the property when the loan has been delinquent for 180 days or has been discharged in bankruptcy proceedings, regardless of whether or not the property is in foreclosure, and charge-off the amount of the loan balance in excess of the estimated current value of the underlying property less estimated costs to sell. |
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Equipment, office facilities, and property | Equipment, office facilities, and property Equipment, office facilities, and property are recorded at cost net of accumulated depreciation and amortization, except for land, which is recorded at cost. Equipment, office facilities, and property include certain capitalized costs of acquired or internally developed software. Costs for internally developed software are capitalized when the costs relate to development of approved projects for our internal needs that result in additional functionality. Costs related to preliminary project and post-project activities are expensed as incurred. Equipment, office facilities, and property (other than land) are depreciated on a straight-line basis over their estimated useful lives Equipment, office facilities, and property are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable. |
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Goodwill | Goodwill Goodwill represents the fair value of acquired businesses in excess of the fair value of the individually identified net assets acquired. Goodwill is not amortized but is tested for impairment annually or whenever indications of impairment exist. Impairment exists when the carrying amount of goodwill exceeds its implied fair value, resulting in an impairment charge for this excess. Our annual impairment testing date is April 1st. Schwab can elect to qualitatively assess goodwill for impairment if it is more likely than not that the fair value of a reporting unit exceeds its carrying value. A qualitative assessment considers macroeconomic and other industry-specific factors, such as trends in short-term and long-term interest rates and the ability to access capital, and Company specific factors such as market capitalization in excess of net assets, trends in revenue generating activities, and merger or acquisition activity. If the Company elects to bypass qualitatively assessing goodwill, or it is not more likely than not that the fair value of a reporting unit exceeds its carrying value, management estimates the fair values of each of the Company’s reporting units (defined as the Company’s businesses for which financial information is available and reviewed regularly by management) and compares it to their carrying values. The estimated fair values of the reporting units are established using an income approach based on a discounted cash flow model that includes significant assumptions about the future operating results and cash flows of each reporting unit, a market approach which compares each reporting unit to comparable companies in their respective industries, as well as a market capitalization analysis. |
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Intangible assets | Intangible assets Finite-lived intangible assets are amortized over their useful lives in a manner that best reflects their economic benefit. All intangible assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable. |
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Low-Income Housing Tax Credit (LIHTC) Investments | Low-Income Housing Tax Credit (LIHTC) Investments As part of our community reinvestment initiatives, Schwab invests with other institutional investors in funds that make equity investments in multifamily affordable housing properties. The Company receives tax credits and other tax benefits for these investments. We account for investments in qualified affordable housing projects using the proportional amortization method if the applicable requirements are met. The proportional amortization method amortizes the cost of the investment over the period in which the investor expects to receive tax credits and other tax benefits, and the resulting amortization is recognized as a component of taxes on income. The carrying value of LIHTC investments is included in other assets on the consolidated balance sheets. Unfunded commitments related to LIHTC investments are included in accrued expenses and other liabilities on the consolidated balance sheets. |
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Guarantees and indemnifications | Guarantees and indemnifications Schwab recognizes, at the inception of a guarantee, a liability equal to the estimated fair value of the obligation undertaken in issuing the guarantee. The fair values of obligations relating to guarantees are estimated based on transactions for similar guarantees or expected present value measures. |
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Advertising and market development | Advertising and market development Advertising and market development activities include the cost to produce and distribute marketing campaigns as well as client incentives and discounts. Such costs are generally expensed when incurred. |
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Income taxes | Income taxes Schwab provides for income taxes on all transactions that have been recognized in the consolidated financial statements. Accordingly, deferred tax assets are adjusted to reflect the tax rates at which future taxable amounts will likely be settled or realized. The effects of tax rate changes on future deferred tax assets and deferred tax liabilities, as well as other changes in income tax laws, are recorded in earnings in the period during which such changes are enacted. Unrecognized tax benefits, which are included in accrued expenses and other liabilities, represent the difference between positions taken on tax return filings and estimated potential tax settlement outcomes. Accrued interest relating to unrecognized tax benefits is recorded in taxes on income and penalties are recorded in other expense. |
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Share-based compensation | Share-based compensation Share-based compensation includes employee and board of director stock options and restricted stock units. Schwab measures compensation expense for these share-based payment arrangements based on their estimated fair values as of the grant date. The fair value of the share-based award is recognized over the vesting period as share-based compensation. Share-based compensation expense is based on units expected to vest and therefore is reduced for estimated forfeitures. Per the Company’s accounting policy election, forfeitures are estimated at the time of grant and reviewed annually based on the Company’s historical forfeiture experience. Share-based compensation expense is adjusted in subsequent periods if actual forfeitures differ from estimated forfeitures. Beginning January 1, 2017, the excess tax benefits or deficiencies from the exercise of stock options and the vesting of restricted stock units are recorded in taxes on income. |
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Fair values of assets and liabilities | Fair values of assets and liabilities Fair value is defined as the price that would be received to sell an asset or the price paid to transfer a liability in an orderly transaction between market participants at the measurement date. Fair value measurement accounting guidance describes the fair value hierarchy for disclosing assets and liabilities measured at fair value based on the inputs used to value them. The fair value hierarchy maximizes the use of observable inputs and minimizes the use of unobservable inputs. Observable inputs are based on market pricing data obtained from sources independent of the Company. A quoted price in an active market provides the most reliable evidence of fair value and is generally used to measure fair value whenever available. Unobservable inputs reflect management’s judgment about the assumptions market participants would use in pricing the asset or liability. Where inputs used to measure fair value of an asset or liability are from different levels of the hierarchy, the asset or liability is categorized based on the lowest level input that is significant to the fair value measurement in its entirety. Assessing the significance of a particular input requires judgment. The fair value hierarchy includes three levels based on the objectivity of the inputs as follows:
The Company’s policy is to recognize transfers of financial instruments between levels as of the beginning of the reporting period in which a transfer occurs. Assets and liabilities measured at fair value on a recurring basis Schwab’s assets and liabilities measured at fair value on a recurring basis include certain cash equivalents, certain investments segregated and on deposit for regulatory purposes, other securities owned, and AFS securities. The Company uses the market approach to determine the fair value of assets and liabilities. When available, the Company uses quoted prices in active markets to measure the fair value of assets and liabilities. When utilizing market data and bid-ask spread, the Company uses the price within the bid-ask spread that best represents fair value. When quoted prices do not exist, the Company uses prices obtained from independent third-party pricing services to measure the fair value of investment assets. We generally obtain prices from at least three independent pricing sources for assets recorded at fair value. Our primary independent pricing service provides prices based on observable trades and discounted cash flows that incorporate observable information such as yields for similar types of securities (a benchmark interest rate plus observable spreads) and weighted-average maturity for the same or similar “to-be-issued” securities. We compare the prices obtained from the primary independent pricing service to the prices obtained from the additional independent pricing services to determine if the price obtained from the primary independent pricing service is reasonable. Schwab does not adjust the prices received from independent third-party pricing services unless such prices are inconsistent with the definition of fair value and result in a material difference in the recorded amounts. Fair value of other financial instruments Descriptions of the valuation methodologies and assumptions used to estimate the fair value of other financial instruments are described below. Our financial instruments not recorded at fair value but for which fair value can be approximated and disclosed include:
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New Accounting Standards | New Accounting Standards Adoption of New Accounting Standards
New Accounting Standards Not Yet Adopted
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Summary of Significant Accounting Policies (Tables) |
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Schedule of estimated useful lives | Estimated useful lives are as follows:
(1) Amortized over contractual term if less than three years. Equipment, office facilities, and property are detailed below:
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Receivables from and Payables to Brokerage Clients (Tables) |
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Receivables [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Receivables from and Payables to Brokerage Clients | Receivables from and payables to brokerage clients are detailed below:
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Other Securities Owned (Tables) |
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Summary of Other Securities Owned | A summary of other securities owned is as follows:
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Investment Securities (Tables) |
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Investments, Debt and Equity Securities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Amortized Cost, Gross Unrealized Gains and Losses, and Fair Value of Securities Available for Sale and Securities Held to Maturity | The amortized cost, gross unrealized gains and losses, and fair value of AFS and HTM securities are as follows:
(1) Approximately 42% and 47% of Asset-backed securities held as of December 31, 2017 and 2016, respectively, were Federal Family Education Loan Program Asset-Backed Securities. Asset-backed securities collateralized by credit cards represented approximately 40% and 36% of the asset-backed securities held as of December 31, 2017 and 2016, respectively. (2) As of December 31, 2017 and 2016, approximately 41% and 49%, respectively, of the total AFS and HTM investments in Corporate debt securities and Commercial paper were issued by institutions in the financial services industry. As of December 31, 2017 and 2016, approximately 22% and 19% of the holdings of these securities were issued by institutions in the information technology industry. |
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Securities with Unrealized Losses, Aggregated by Category and Period of Continuous Unrealized Loss | Securities with unrealized losses, aggregated by category and period of continuous unrealized loss, are as follows:
(1) The number of investment positions with unrealized losses totaled 251 for AFS securities and 938 for HTM securities. (2) The number of investment positions with unrealized losses totaled 627 for AFS securities and 612 for HTM securities. |
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Maturities of Securities Available for Sale and Securities Held to Maturity | The maturities of AFS and HTM securities are as follows:
(1) Mortgage-backed securities have been allocated to maturity groupings based on final contractual maturities. Actual maturities will differ from final contractual maturities because borrowers on a certain portion of loans underlying these securities have the right to prepay their obligations. (2) The weighted-average yield is computed using the amortized cost at December 31, 2017. |
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Proceeds and Gross Realized Gains And Losses from Sales of Securities Available for Sale | Proceeds and gross realized gains and losses from sales of AFS securities are as follows:
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Bank Loans and Related Allowance for Loan Losses (Tables) |
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Dec. 31, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Receivables [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Composition of Bank Loans and Delinquency Analysis by Loan Segment | The composition of bank loans and delinquency analysis by loan type is as follows:
(1) First Mortgages and HELOCs include unamortized premiums and discounts and direct origination costs of $77 million and $78 million at December 31, 2017 and 2016, respectively. (2) At December 31, 2017 and 2016, 48% of the First Mortgage and HELOC portfolios were concentrated in California. These loans have performed in a manner consistent with the portfolio as a whole. (3) There were no loans accruing interest that were contractually 90 days or more past due at December 31, 2017 or 2016. |
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Changes in Allowance for Loan Losses | Changes in the allowance for loan losses were as follows:
(1) All PALs were fully collateralized by securities with fair values in excess of borrowings at December 31, 2017, 2016, and 2015. |
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Impaired Bank Loan Assets | A summary of impaired bank loan related assets is as follows:
(1) Nonaccrual loans include nonaccrual troubled debt restructurings. (2) Included in Other assets on the consolidated balance sheets. |
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Credit Quality Indicators of Bank Loan Portfolio | The credit quality indicators of the bank loan portfolio are detailed below:
(1) The Utilization Rate is calculated using the outstanding balance divided by the associated total line of credit. (2) Represents the LTV for the full line of credit (drawn and undrawn). N/A Not applicable.
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Convert to Amortizing Loans | The following table presents when current outstanding HELOCs will convert to amortizing loans:
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Equipment, Office Facilities, and Property (Tables) |
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Property, Plant and Equipment [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Equipment, Office Facilities, and Property | Estimated useful lives are as follows:
(1) Amortized over contractual term if less than three years. Equipment, office facilities, and property are detailed below:
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Intangible Assets and Goodwill (Tables) |
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Dec. 31, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Intangible Assets and Goodwill | Intangible assets and goodwill are detailed below:
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Estimated Future Annual Amortization Expense for Intangible Assets | Estimated future annual amortization expense for intangible assets as of December 31, 2017, is as follows:
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Changes in Carrying Amount of Goodwill as Allocated to Reportable Segments | The changes in the carrying amount of goodwill, as allocated to our reportable segments for purposes of testing goodwill for impairment are presented in the following table:
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Other Assets (Tables) |
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Dec. 31, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Components of Other Assets | The components of other assets are as follows:
(1) Accounts receivable includes accrued service fee income and a receivable from our loan servicer. (2) Investments in stock of the FHLB can only be sold to the issuer at its par value. Any cash dividends received from these investments are recognized as interest income in the consolidated statements of income. (3) Predominantly CRA-related, including LIHTC investments. |
Variable Interest Entities (Tables) |
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Variable Interest Entities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Aggregate Assets, Liabilities and Maximum Exposure to Loss | The aggregate assets, liabilities, and maximum exposure to loss from those VIEs in which Schwab holds a variable interest, but as to which we have concluded it is not the primary beneficiary, are summarized in the table below:
(1) Aggregate assets and aggregate liabilities are included in other assets and accrued expenses and other liabilities, respectively, on the consolidated balance sheets. (2) Other CRA investments are recorded using either the cost method, equity method, or as HTM securities. Aggregate assets are included in other assets, HTM securities, or bank loans – net on the consolidated balance sheets. |
Bank Deposits (Tables) |
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Dec. 31, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Banking and Thrift [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Deposits from Banking Clients Consisting of Interest Bearing and Noninterest Bearing Deposits | Bank deposits consist of interest-bearing and non-interest-bearing deposits as follows:
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Borrowings (Tables) |
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Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-term Debt Including Unamortized Debt Discounts and Premiums | ong-term debt by instrument outstanding as of December 31, 2017 and 2016.
(1) Redeemed on February 8, 2018. See Note 25. (2) Schwab has a finance lease obligation related to an office building and land under a 20-year lease. The remaining finance lease obligation is being reduced by a portion of the lease payments over the remaining lease term through June 30, 2024. |
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Annual Maturities on Long-term Debt Outstanding | Annual maturities on long-term debt outstanding at December 31, 2017, are as follows:
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Commitments and Contingencies (Tables) |
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Commitments and Contingencies Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Commitments to Purchase or Sell | The Company’s commitments to extend credit on bank lines of credit and to purchase First Mortgages are as follows:
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Future Annual Minimum Rental Commitments, Net of Contractual Subleases | Future annual minimum rental commitments under these leases, net of contractual subleases are as follows:
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Purchase Obligations | The Company has purchase obligations as follows:
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Financial Instruments Subject to Off-Balance Sheet Credit Risk (Tables) |
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Offsetting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Offsetting Assets and Liabilities | The following table presents information about our resale agreements and securities lending activity depicting the potential effect of rights of setoff between these recognized assets and recognized liabilities at December 31, 2017 and 2016.
(1) Included in cash and investments segregated and on deposit for regulatory purposes in the consolidated balance sheets. (2) Actual collateral was greater than or equal to 102% of the related assets. At December 31, 2017 and 2016, the fair value of collateral received in connection with resale agreements that are available to be repledged or sold was $6.7 billion and $9.8 billion, respectively. (3) Included in receivables from brokers, dealers, and clearing organizations in the consolidated balance sheets. (4) Included in payables to brokers, dealers, and clearing organizations in the consolidated balance sheets. The cash collateral received from counterparties under securities lending transactions was equal to or greater than the market value of the securities loaned at December 31, 2017 and 2016. (5) Securities loaned are predominantly comprised of equity securities held in client brokerage accounts with overnight and continuous remaining contractual maturities. |
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Summary of the Fair Value of Client Securities Available to Utilize as Collateral and Amounts Pledged |
Note: Excludes amounts available and pledged for securities lending from fully-paid client securities. The fair value of fully-paid client securities available and pledged was $78 million as of December 31, 2017 and $58 million as of December 31, 2016.
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Fair Values of Assets and Liabilities (Tables) |
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Hierarchy for Assets and Liabilities Measured at Fair Value on a Recurring Basis | Liabilities recorded at fair value were not material, and therefore are not included in the following tables:
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Fair Value of Other Financial Instruments | The following tables present the fair value hierarchy for other financial instruments:
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Stockholders' Equity (Tables) |
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Stockholders' Equity Note [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Preferred Stock Issued and Outstanding | The following is a summary of CSC’s non-cumulative perpetual preferred stock outstanding as of such dates:
(1) Represented by depositary shares, except for Series A (2) On December 1, 2017, CSC redeemed all of the outstanding shares of its 6.00% Non-Cumulative Preferred Stock, Series B at their stated redemption value. |
Accumulated Other Comprehensive Income (Tables) |
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Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Components of Other Comprehensive Income (Loss) | AOCI represents cumulative gains and losses that are not reflected in earnings. The components of other comprehensive income (loss) are as follows:
(1) See Note 5 for discussion of the transfer of securities from the AFS category to the HTM category during the first quarter of 2017. |
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Accumulated Other Comprehensive Income Balances | AOCI balances are as follows:
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Employee Incentive, Retirement, Deferred Compensation, and Career Achievement Plans (Tables) |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2017 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Retirement Benefits [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock-Based Compensation Expense and Related Income Tax Benefit | A summary of share-based compensation expense and related income tax benefit is as follows:
(1) Excludes the 2017 income tax benefit of $87 million due to the adoption of ASU 2016-09, as disclosed in Note 2. |
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Stock Option Activity | Stock option activity is summarized below:
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Information on Stock Options Granted and Exercised | Information on stock options granted and exercised is presented below:
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Assumptions Used to Value Options Granted and Their Expected Lives | The assumptions used to value the options granted during the years presented and their expected lives were as follows:
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Restricted Stock Units Activity | The Company’s restricted stock units activity is summarized below:
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Schedule of Changes in Projected Benefit Obligations | The following table presents the changes in projected benefit obligation:
(1) This amount is recognized as a liability on the consolidated balance sheets and also depicts the accumulated benefit obligation. |
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Schedule of Net Benefit Costs and Assumptions Used | The following table presents the net benefit cost and assumptions used to determine the net benefit cost:
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Schedule of Components and Amounts Impacting AOCI | The following tables present the change in AOCI attributable to the components of the net cost and the change in benefit obligation and the amounts recognized in AOCI:
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Taxes on Income (Tables) |
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Dec. 31, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Tax Expense | The components of taxes on income are as follows:
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Temporary Differences That Created Deferred Tax Assets and Liabilities | The temporary differences that created deferred tax assets and liabilities are detailed below:
(1) Amounts are included in other assets on the consolidated balance sheets at both December 31, 2017 and 2016. |
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Reconciliation of Federal Statutory Income Tax Rate to Effective Income Tax Rate | A reconciliation of the federal statutory income tax rate to the effective income tax rate is as follows:
(1) Includes the impact of one-time charge to taxes on income associated with the Tax Act. |
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Reconciliation of Beginning and Ending Amount of Unrecognized Tax Benefits | A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:
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Earnings Per Common Share (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
EPS under Basic and Diluted Computations | The computation of diluted EPS is similar to the computation of basic EPS except that the denominator is increased to include the number of additional common shares that would have been outstanding if dilutive potential common shares had been issued. Dilutive potential common shares include, if dilutive, the effect of outstanding stock options and non-vested restricted stock units. EPS under the basic and diluted computations is as follows:
(1) Includes preferred stock dividends and undistributed earnings and dividends allocated to non-vested restricted stock units. (2) Antidilutive stock options and restricted stock units excluded from the calculation of diluted EPS totaled 15 million, 26 million, and 23 million shares in 2017, 2016, and 2015, respectively. |
Regulatory Requirements (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Banking and Thrift [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Regulatory Capital and Ratios | The regulatory capital and ratios for CSC (consolidated) and Schwab Bank are as follows:
N/A Not Applicable. |
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Net Capital and Net Capital Requirements for CS&Co | Net capital and net capital requirements for CS&Co are as follows:
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Segment Information (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Financial Information for Reportable Segments | Financial information for the segments is presented in the following table:
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The Charles Schwab Corporation - Parent Company Only Financial Statements (Tables) |
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Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Condensed Statements of Income | Condensed Statements of Income
(1) Includes preferred stock dividends and undistributed earnings and dividends allocated to non-vested restricted stock units. |
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Condensed Balance Sheets | Condensed Balance Sheets
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Condensed Statements of Cash Flows | Condensed Statements of Cash Flows
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Quarterly Financial Information (Unaudited) (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Quarterly Financial Information Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Quarterly Financial Information |
(1) Price/earnings ratio is computed by dividing the high and low market prices by diluted earnings per common share for the preceding 12-month period ending on the last day of the quarter presented. |
Introduction and Basis of Presentation (Details) |
Dec. 31, 2017
state
office
|
---|---|
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Minimum number of domestic branch offices | office | 345 |
States with domestic branch offices | state | 46 |
Receivables from and Payables to Brokerage Clients (Details) - USD ($) $ in Millions |
12 Months Ended | |
---|---|---|
Dec. 31, 2017 |
Dec. 31, 2016 |
|
Receivables [Abstract] | ||
Margin loans, net of allowance for doubtful accounts | $ 18,331 | $ 15,257 |
Other brokerage receivables | 2,245 | 1,898 |
Receivables from brokerage clients — net | 20,576 | 17,155 |
Payables | ||
Interest-bearing payables | 22,840 | 28,336 |
Non-interest-bearing payables | 8,403 | 7,558 |
Payables to brokerage clients | $ 31,243 | $ 35,894 |
California [Member] | Geographic Concentration Risk [Member] | Contract with Customer [Member] | ||
Concentration Risk [Line Items] | ||
Percent of client accounts | 22.00% | 23.00% |
Other Securities Owned (Summary of Other Securities Owned) (Details) - USD ($) $ in Millions |
Dec. 31, 2017 |
Dec. 31, 2016 |
---|---|---|
Other Securities Owned [Line Items] | ||
Other securities owned | $ 539 | $ 449 |
Equity and bond mutual funds [Member] | ||
Other Securities Owned [Line Items] | ||
Other securities owned | 318 | 272 |
Schwab Funds money market funds [Member] | ||
Other Securities Owned [Line Items] | ||
Other securities owned | 135 | 108 |
State and municipal debt obligations [Member] | ||
Other Securities Owned [Line Items] | ||
Other securities owned | 52 | 41 |
Equity, U.S. Government and corporate debt, and other securities [Member] | ||
Other Securities Owned [Line Items] | ||
Other securities owned | $ 34 | $ 28 |
Investment Securities (Amortized Cost, Gross Unrealized Gains and Losses, and Fair Value of Securities Available for Sale and Held to Maturity Securities) (Details) - USD ($) $ in Millions |
Dec. 31, 2017 |
Dec. 31, 2016 |
---|---|---|
Available for sale securities: | ||
Amortized Cost | $ 50,029 | $ 77,627 |
Gross Unrealized Gains | 105 | 176 |
Gross Unrealized Losses | 139 | 438 |
Fair Value | 49,995 | 77,365 |
Held to maturity securities: | ||
Amortized Cost | 120,926 | 75,203 |
Gross Unrealized Gains | 497 | 336 |
Gross Unrealized Losses | 1,050 | 1,095 |
Fair Value | 120,373 | 74,444 |
U.S. agency mortgage-backed securities [Member] | ||
Available for sale securities: | ||
Amortized Cost | 20,915 | 33,167 |
Gross Unrealized Gains | 53 | 120 |
Gross Unrealized Losses | 39 | 92 |
Fair Value | 20,929 | 33,195 |
Held to maturity securities: | ||
Amortized Cost | 101,197 | 72,439 |
Gross Unrealized Gains | 290 | 324 |
Gross Unrealized Losses | 1,034 | 1,086 |
Fair Value | 100,453 | 71,677 |
U.S. Treasury securities [Member] | ||
Available for sale securities: | ||
Amortized Cost | 9,583 | 8,679 |
Gross Unrealized Gains | 0 | 3 |
Gross Unrealized Losses | 83 | 59 |
Fair Value | 9,500 | 8,623 |
Held to maturity securities: | ||
Amortized Cost | 223 | 223 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 3 | 4 |
Fair Value | 220 | 219 |
Asset-backed securities [Member] | ||
Available for sale securities: | ||
Amortized Cost | 9,019 | 20,520 |
Gross Unrealized Gains | 34 | 29 |
Gross Unrealized Losses | 6 | 214 |
Fair Value | 9,047 | 20,335 |
Held to maturity securities: | ||
Amortized Cost | 12,937 | 941 |
Gross Unrealized Gains | 127 | 0 |
Gross Unrealized Losses | 2 | 0 |
Fair Value | 13,062 | 941 |
Corporate debt securities [Member] | ||
Available for sale securities: | ||
Amortized Cost | 6,154 | 9,850 |
Gross Unrealized Gains | 16 | 20 |
Gross Unrealized Losses | 1 | 18 |
Fair Value | 6,169 | 9,852 |
Held to maturity securities: | ||
Amortized Cost | 4,078 | 436 |
Gross Unrealized Gains | 13 | 0 |
Gross Unrealized Losses | 5 | 0 |
Fair Value | $ 4,086 | $ 436 |
Available for sale and held to maturity securities | 41.00% | 49.00% |
Certificates of deposit [Member] | ||
Available for sale securities: | ||
Amortized Cost | $ 2,040 | $ 2,070 |
Gross Unrealized Gains | 2 | 2 |
Gross Unrealized Losses | 1 | 1 |
Fair Value | 2,041 | 2,071 |
Held to maturity securities: | ||
Amortized Cost | 200 | |
Gross Unrealized Gains | 0 | |
Gross Unrealized Losses | 0 | |
Fair Value | 200 | |
U.S. agency notes [Member] | ||
Available for sale securities: | ||
Amortized Cost | 1,914 | 1,915 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 8 | 8 |
Fair Value | 1,906 | 1,907 |
Commercial paper [Member] | ||
Available for sale securities: | ||
Amortized Cost | 313 | 214 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 0 | 0 |
Fair Value | 313 | 214 |
Held to maturity securities: | ||
Amortized Cost | 99 | |
Gross Unrealized Gains | 0 | |
Gross Unrealized Losses | 0 | |
Fair Value | 99 | |
U.S. state and municipal securities [Member] | ||
Available for sale securities: | ||
Amortized Cost | 1,167 | |
Gross Unrealized Gains | 2 | |
Gross Unrealized Losses | 46 | |
Fair Value | 1,123 | |
Held to maturity securities: | ||
Amortized Cost | 1,247 | 68 |
Gross Unrealized Gains | 57 | 1 |
Gross Unrealized Losses | 0 | 1 |
Fair Value | 1,304 | 68 |
Non-agency commercial mortgage-backed securities [Member] | ||
Available for sale securities: | ||
Amortized Cost | 40 | 45 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 0 | 0 |
Fair Value | 40 | 45 |
Held to maturity securities: | ||
Amortized Cost | 994 | 997 |
Gross Unrealized Gains | 10 | 11 |
Gross Unrealized Losses | 5 | 4 |
Fair Value | 999 | $ 1,004 |
Foreign government agency securities [Member] | ||
Available for sale securities: | ||
Amortized Cost | 51 | |
Gross Unrealized Gains | 0 | |
Gross Unrealized Losses | 1 | |
Fair Value | 50 | |
Held to maturity securities: | ||
Amortized Cost | 50 | |
Gross Unrealized Gains | 0 | |
Gross Unrealized Losses | 1 | |
Fair Value | $ 49 | |
Federal Family Education Loan Program Asset-Backed Securities [Member] | ||
Held to maturity securities: | ||
Asset-backed securities percent | 42.00% | 47.00% |
Collateralized Credit Card Securities [Member] | ||
Held to maturity securities: | ||
Asset-backed securities percent | 40.00% | 36.00% |
Corporate Debt Securities, Information Technology [Member] | ||
Held to maturity securities: | ||
Available for sale and held to maturity securities | 22.00% | 19.00% |
Investment Securities (Narrative) (Details) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2017 |
Dec. 31, 2018 |
Dec. 31, 2016 |
|
Schedule of Held-to-maturity Securities [Line Items] | |||
Debt securities transferred from AFS to HTM | $ 24,700 | ||
Unrealized loss | 227 | ||
Assets | 243,274 | $ 223,383 | |
Trust Deposits [Member] | |||
Schedule of Held-to-maturity Securities [Line Items] | |||
Fair value of pledged securities | 923 | ||
FHLB [Member] | |||
Schedule of Held-to-maturity Securities [Line Items] | |||
Fair value of pledged securities | 24,200 | ||
Federal Reserve Bank [Member] | |||
Schedule of Held-to-maturity Securities [Line Items] | |||
Fair value of pledged securities | $ 2,500 | ||
Scenario, Forecast [Member] | |||
Schedule of Held-to-maturity Securities [Line Items] | |||
Assets | $ 250,000 |
Investment Securities (Available For Sale and Held to Maturity Securities with Unrealized Losses, Aggregated by Category and Period of Continuous Unrealized Loss) (Details) $ in Millions |
Dec. 31, 2017
USD ($)
security
|
Dec. 31, 2016
USD ($)
security
|
---|---|---|
Available for sale securities: | ||
Less than 12 months Fair Value | $ 12,909 | $ 29,156 |
Less than 12 months Unrealized Losses | 38 | 212 |
12 months or longer Fair Value | 9,774 | 12,921 |
12 months or longer Unrealized Losses | 101 | 226 |
Total Fair Value | 22,683 | 42,077 |
Total Unrealized Losses | 139 | 438 |
Held to maturity securities: | ||
Less than 12 months Fair Value | 45,180 | 52,185 |
Less than 12 months Unrealized Losses | 326 | 1,095 |
12 months or longer Fair Value | 24,825 | 0 |
12 months or longer Unrealized Losses | 724 | 0 |
Total Fair Value | 70,005 | 52,185 |
Total Unrealized Losses | 1,050 | 1,095 |
Total securities with unrealized losses | ||
Less than 12 months Fair Value | 58,089 | 81,341 |
Less than 12 months Unrealized Losses | 364 | 1,307 |
12 months or longer Fair Value | 34,599 | 12,921 |
12 months or longer Unrealized Losses | 825 | 226 |
Total Fair Value | 92,688 | 94,262 |
Total Unrealized Losses | $ 1,189 | $ 1,533 |
Number of available for sale securities in unrealized loss positions | security | 251 | 627 |
Number of held to maturity securities in unrealized loss positions | security | 938 | 612 |
U.S. agency mortgage-backed securities [Member] | ||
Available for sale securities: | ||
Less than 12 months Fair Value | $ 5,696 | $ 14,816 |
Less than 12 months Unrealized Losses | 21 | 69 |
12 months or longer Fair Value | 2,548 | 2,931 |
12 months or longer Unrealized Losses | 18 | 23 |
Total Fair Value | 8,244 | 17,747 |
Total Unrealized Losses | 39 | 92 |
Held to maturity securities: | ||
Less than 12 months Fair Value | 42,102 | 51,361 |
Less than 12 months Unrealized Losses | 310 | 1,086 |
12 months or longer Fair Value | 24,753 | 0 |
12 months or longer Unrealized Losses | 724 | 0 |
Total Fair Value | 66,855 | 51,361 |
Total Unrealized Losses | 1,034 | 1,086 |
Non-agency commercial mortgage-backed securities [Member] | ||
Held to maturity securities: | ||
Less than 12 months Fair Value | 607 | 591 |
Less than 12 months Unrealized Losses | 5 | 4 |
12 months or longer Fair Value | 0 | 0 |
12 months or longer Unrealized Losses | 0 | 0 |
Total Fair Value | 607 | 591 |
Total Unrealized Losses | 5 | 4 |
Asset-backed securities [Member] | ||
Available for sale securities: | ||
Less than 12 months Fair Value | 904 | 1,670 |
Less than 12 months Unrealized Losses | 3 | 13 |
12 months or longer Fair Value | 424 | 9,237 |
12 months or longer Unrealized Losses | 3 | 201 |
Total Fair Value | 1,328 | 10,907 |
Total Unrealized Losses | 6 | 214 |
Held to maturity securities: | ||
Less than 12 months Fair Value | 1,124 | |
Less than 12 months Unrealized Losses | 2 | |
12 months or longer Fair Value | 72 | |
12 months or longer Unrealized Losses | 0 | |
Total Fair Value | 1,196 | |
Total Unrealized Losses | 2 | |
Corporate debt securities [Member] | ||
Available for sale securities: | ||
Less than 12 months Fair Value | 736 | 2,407 |
Less than 12 months Unrealized Losses | 1 | 17 |
12 months or longer Fair Value | 120 | 653 |
12 months or longer Unrealized Losses | 0 | 1 |
Total Fair Value | 856 | 3,060 |
Total Unrealized Losses | 1 | 18 |
Held to maturity securities: | ||
Less than 12 months Fair Value | 1,078 | |
Less than 12 months Unrealized Losses | 5 | |
12 months or longer Fair Value | 0 | |
12 months or longer Unrealized Losses | 0 | |
Total Fair Value | 1,078 | |
Total Unrealized Losses | 5 | |
U.S. Treasury securities [Member] | ||
Available for sale securities: | ||
Less than 12 months Fair Value | 4,625 | 6,926 |
Less than 12 months Unrealized Losses | 11 | 59 |
12 months or longer Fair Value | 4,875 | 0 |
12 months or longer Unrealized Losses | 72 | 0 |
Total Fair Value | 9,500 | 6,926 |
Total Unrealized Losses | 83 | 59 |
Held to maturity securities: | ||
Less than 12 months Fair Value | 220 | 219 |
Less than 12 months Unrealized Losses | 3 | 4 |
12 months or longer Fair Value | 0 | 0 |
12 months or longer Unrealized Losses | 0 | 0 |
Total Fair Value | 220 | 219 |
Total Unrealized Losses | 3 | 4 |
Certificates of deposit [Member] | ||
Available for sale securities: | ||
Less than 12 months Fair Value | 799 | 474 |
Less than 12 months Unrealized Losses | 1 | 0 |
12 months or longer Fair Value | 0 | 100 |
12 months or longer Unrealized Losses | 0 | 1 |
Total Fair Value | 799 | 574 |
Total Unrealized Losses | 1 | 1 |
U.S. agency notes [Member] | ||
Available for sale securities: | ||
Less than 12 months Fair Value | 99 | 1,907 |
Less than 12 months Unrealized Losses | 0 | 8 |
12 months or longer Fair Value | 1,807 | 0 |
12 months or longer Unrealized Losses | 8 | 0 |
Total Fair Value | 1,906 | 1,907 |
Total Unrealized Losses | 8 | 8 |
Foreign government agency securities [Member] | ||
Available for sale securities: | ||
Less than 12 months Fair Value | 50 | |
Less than 12 months Unrealized Losses | 1 | |
12 months or longer Fair Value | 0 | |
12 months or longer Unrealized Losses | 0 | |
Total Fair Value | 50 | |
Total Unrealized Losses | 1 | |
Held to maturity securities: | ||
Less than 12 months Fair Value | 49 | |
Less than 12 months Unrealized Losses | 1 | |
12 months or longer Fair Value | 0 | |
12 months or longer Unrealized Losses | 0 | |
Total Fair Value | 49 | |
Total Unrealized Losses | $ 1 | |
U.S. state and municipal securities [Member] | ||
Available for sale securities: | ||
Less than 12 months Fair Value | 956 | |
Less than 12 months Unrealized Losses | 46 | |
12 months or longer Fair Value | 0 | |
12 months or longer Unrealized Losses | 0 | |
Total Fair Value | 956 | |
Total Unrealized Losses | 46 | |
Held to maturity securities: | ||
Less than 12 months Fair Value | 14 | |
Less than 12 months Unrealized Losses | 1 | |
12 months or longer Fair Value | 0 | |
12 months or longer Unrealized Losses | 0 | |
Total Fair Value | 14 | |
Total Unrealized Losses | $ 1 |
Investment Securities (Maturities of Securities Available for Sale and Held to Maturity) (Details) - USD ($) $ in Millions |
Dec. 31, 2017 |
Dec. 31, 2016 |
---|---|---|
Available for sale securities, fair value | ||
Within 1 year | $ 8,508 | |
After 1 year through 5 years | 20,960 | |
After 5 years through 10 years | 9,543 | |
After 10 years | 10,984 | |
Fair Value | 49,995 | $ 77,365 |
Available for sale securities, amortized cost | ||
Within 1 year | 8,517 | |
After 1 year through 5 years | 20,999 | |
After 5 years through 10 years | 9,546 | |
After 10 years | 10,967 | |
Amortized Cost | $ 50,029 | 77,627 |
Weighted-average yield | ||
Within 1 year | 1.53% | |
After 1 year through 5 years | 1.63% | |
After 5 years through 10 years | 1.72% | |
After 10 years | 1.79% | |
Total | 1.66% | |
Held to maturity securities, fair value | ||
Within 1 year | $ 792 | |
After 1 year through 5 years | 17,500 | |
After 5 years through 10 years | 36,551 | |
After 10 years | 65,530 | |
Fair Value | 120,373 | 74,444 |
Held to maturity securities, amortized cost | ||
Within 1 year | 792 | |
After 1 year through 5 years | 17,486 | |
After 5 years through 10 years | 36,544 | |
After 10 years | 66,104 | |
Amortized Cost | $ 120,926 | 75,203 |
Weighted-average yield | ||
Within 1 year | 1.97% | |
After 1 year through 5 years | 2.45% | |
After 5 years through 10 years | 2.35% | |
After 10 years | 2.16% | |
Total | 2.26% | |
U.S. agency mortgage-backed securities [Member] | ||
Available for sale securities, fair value | ||
Within 1 year | $ 61 | |
After 1 year through 5 years | 2,253 | |
After 5 years through 10 years | 8,282 | |
After 10 years | 10,333 | |
Fair Value | 20,929 | 33,195 |
Available for sale securities, amortized cost | ||
Amortized Cost | 20,915 | 33,167 |
Held to maturity securities, fair value | ||
Within 1 year | 441 | |
After 1 year through 5 years | 12,680 | |
After 5 years through 10 years | 29,511 | |
After 10 years | 57,821 | |
Fair Value | 100,453 | 71,677 |
Held to maturity securities, amortized cost | ||
Amortized Cost | 101,197 | 72,439 |
Asset-backed securities [Member] | ||
Available for sale securities, fair value | ||
Within 1 year | 251 | |
After 1 year through 5 years | 6,924 | |
After 5 years through 10 years | 1,261 | |
After 10 years | 611 | |
Fair Value | 9,047 | 20,335 |
Available for sale securities, amortized cost | ||
Amortized Cost | 9,019 | 20,520 |
Held to maturity securities, fair value | ||
Within 1 year | 0 | |
After 1 year through 5 years | 1,003 | |
After 5 years through 10 years | 6,245 | |
After 10 years | 5,814 | |
Fair Value | 13,062 | 941 |
Held to maturity securities, amortized cost | ||
Amortized Cost | 12,937 | 941 |
Corporate debt securities [Member] | ||
Available for sale securities, fair value | ||
Within 1 year | 3,135 | |
After 1 year through 5 years | 3,034 | |
After 5 years through 10 years | 0 | |
After 10 years | 0 | |
Fair Value | 6,169 | 9,852 |
Available for sale securities, amortized cost | ||
Amortized Cost | 6,154 | 9,850 |
Held to maturity securities, fair value | ||
Within 1 year | 351 | |
After 1 year through 5 years | 3,206 | |
After 5 years through 10 years | 454 | |
After 10 years | 75 | |
Fair Value | 4,086 | 436 |
Held to maturity securities, amortized cost | ||
Amortized Cost | 4,078 | 436 |
U.S. Treasury securities [Member] | ||
Available for sale securities, fair value | ||
Within 1 year | 2,515 | |
After 1 year through 5 years | 6,985 | |
After 5 years through 10 years | 0 | |
After 10 years | 0 | |
Fair Value | 9,500 | 8,623 |
Available for sale securities, amortized cost | ||
Amortized Cost | 9,583 | 8,679 |
Held to maturity securities, fair value | ||
Within 1 year | 0 | |
After 1 year through 5 years | 0 | |
After 5 years through 10 years | 220 | |
After 10 years | 0 | |
Fair Value | 220 | 219 |
Held to maturity securities, amortized cost | ||
Amortized Cost | 223 | 223 |
Certificates of deposit [Member] | ||
Available for sale securities, fair value | ||
Within 1 year | 575 | |
After 1 year through 5 years | 1,466 | |
After 5 years through 10 years | 0 | |
After 10 years | 0 | |
Fair Value | 2,041 | 2,071 |
Available for sale securities, amortized cost | ||
Amortized Cost | 2,040 | 2,070 |
Held to maturity securities, fair value | ||
Within 1 year | 0 | |
After 1 year through 5 years | 200 | |
After 5 years through 10 years | 0 | |
After 10 years | 0 | |
Fair Value | 200 | |
Held to maturity securities, amortized cost | ||
Amortized Cost | 200 | |
U.S. agency notes [Member] | ||
Available for sale securities, fair value | ||
Within 1 year | 1,658 | |
After 1 year through 5 years | 248 | |
After 5 years through 10 years | 0 | |
After 10 years | 0 | |
Fair Value | 1,906 | 1,907 |
Available for sale securities, amortized cost | ||
Amortized Cost | 1,914 | 1,915 |
U.S. state and municipal securities [Member] | ||
Available for sale securities, fair value | ||
Fair Value | 1,123 | |
Available for sale securities, amortized cost | ||
Amortized Cost | 1,167 | |
Held to maturity securities, fair value | ||
Within 1 year | 0 | |
After 1 year through 5 years | 0 | |
After 5 years through 10 years | 121 | |
After 10 years | 1,183 | |
Fair Value | 1,304 | 68 |
Held to maturity securities, amortized cost | ||
Amortized Cost | 1,247 | 68 |
Commercial paper [Member] | ||
Available for sale securities, fair value | ||
Within 1 year | 313 | |
After 1 year through 5 years | 0 | |
After 5 years through 10 years | 0 | |
After 10 years | 0 | |
Fair Value | 313 | 214 |
Available for sale securities, amortized cost | ||
Amortized Cost | 313 | 214 |
Held to maturity securities, fair value | ||
Fair Value | 99 | |
Held to maturity securities, amortized cost | ||
Amortized Cost | 99 | |
Non-agency commercial mortgage-backed securities [Member] | ||
Available for sale securities, fair value | ||
Within 1 year | 0 | |
After 1 year through 5 years | 0 | |
After 5 years through 10 years | 0 | |
After 10 years | 40 | |
Fair Value | 40 | 45 |
Available for sale securities, amortized cost | ||
Amortized Cost | 40 | 45 |
Held to maturity securities, fair value | ||
Within 1 year | 0 | |
After 1 year through 5 years | 362 | |
After 5 years through 10 years | 0 | |
After 10 years | 637 | |
Fair Value | 999 | 1,004 |
Held to maturity securities, amortized cost | ||
Amortized Cost | 994 | $ 997 |
Foreign government agency securities [Member] | ||
Available for sale securities, fair value | ||
Within 1 year | 0 | |
After 1 year through 5 years | 50 | |
After 5 years through 10 years | 0 | |
After 10 years | 0 | |
Fair Value | 50 | |
Available for sale securities, amortized cost | ||
Amortized Cost | 51 | |
Held to maturity securities, fair value | ||
Within 1 year | 0 | |
After 1 year through 5 years | 49 | |
After 5 years through 10 years | 0 | |
After 10 years | 0 | |
Fair Value | 49 | |
Held to maturity securities, amortized cost | ||
Amortized Cost | $ 50 |
Investment Securities (Proceeds and Gross Realized Gains And Losses from Sales of Securities Available for Sale) (Details) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2017 |
Dec. 31, 2016 |
Dec. 31, 2015 |
|
Investments, Debt and Equity Securities [Abstract] | |||
Proceeds | $ 8,617 | $ 5,537 | $ 2,424 |
Gross realized gains | 12 | 4 | 1 |
Gross realized losses | $ 0 | $ 0 | $ 1 |
Bank Loans and Related Allowance for Loan Losses (Composition of Bank Loans and Delinquency Analysis by Loan Segment) (Details) - USD ($) |
12 Months Ended | |||
---|---|---|---|---|
Dec. 31, 2017 |
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Current | $ 16,448,000,000 | $ 15,376,000,000 | ||
Past due and other nonaccrual loans | 56,000,000 | 53,000,000 | ||
Total loans | 16,504,000,000 | 15,429,000,000 | ||
Allowance for loan losses | 26,000,000 | 26,000,000 | $ 31,000,000 | $ 42,000,000 |
Total bank loans - net | 16,478,000,000 | 15,403,000,000 | ||
Loans accruing interest contractually 90 days or more past due | 0 | 0 | ||
30-59 Days Past Due [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Past due and other nonaccrual loans | 18,000,000 | 21,000,000 | ||
60-89 Days Past Due [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Past due and other nonaccrual loans | 9,000,000 | 6,000,000 | ||
>90 Days Past Due And Other Nonaccrual Loans [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Past due and other nonaccrual loans | 29,000,000 | 26,000,000 | ||
First Mortgage [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Current | 9,983,000,000 | 9,100,000,000 | ||
Past due and other nonaccrual loans | 33,000,000 | 34,000,000 | ||
Total loans | 10,016,000,000 | 9,134,000,000 | ||
Allowance for loan losses | 16,000,000 | 17,000,000 | 20,000,000 | 29,000,000 |
Total bank loans - net | 10,000,000,000 | 9,117,000,000 | ||
First Mortgage [Member] | 30-59 Days Past Due [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Past due and other nonaccrual loans | 14,000,000 | 15,000,000 | ||
First Mortgage [Member] | 60-89 Days Past Due [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Past due and other nonaccrual loans | 2,000,000 | 3,000,000 | ||
First Mortgage [Member] | >90 Days Past Due And Other Nonaccrual Loans [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Past due and other nonaccrual loans | 17,000,000 | 16,000,000 | ||
HELOC's [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Current | 1,928,000,000 | 2,336,000,000 | ||
Past due and other nonaccrual loans | 15,000,000 | 14,000,000 | ||
Total loans | 1,943,000,000 | 2,350,000,000 | ||
Allowance for loan losses | 8,000,000 | 8,000,000 | 11,000,000 | $ 13,000,000 |
Total bank loans - net | 1,935,000,000 | 2,342,000,000 | ||
HELOC's [Member] | 30-59 Days Past Due [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Past due and other nonaccrual loans | 0 | 2,000,000 | ||
HELOC's [Member] | 60-89 Days Past Due [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Past due and other nonaccrual loans | 3,000,000 | 2,000,000 | ||
HELOC's [Member] | >90 Days Past Due And Other Nonaccrual Loans [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Past due and other nonaccrual loans | 12,000,000 | 10,000,000 | ||
Pledged asset lines [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Current | 4,361,000,000 | 3,846,000,000 | ||
Past due and other nonaccrual loans | 8,000,000 | 5,000,000 | ||
Total loans | 4,369,000,000 | 3,851,000,000 | ||
Allowance for loan losses | 0 | 0 | ||
Total bank loans - net | 4,369,000,000 | 3,851,000,000 | ||
Pledged asset lines [Member] | 30-59 Days Past Due [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Past due and other nonaccrual loans | 4,000,000 | 4,000,000 | ||
Pledged asset lines [Member] | 60-89 Days Past Due [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Past due and other nonaccrual loans | 4,000,000 | 1,000,000 | ||
Pledged asset lines [Member] | >90 Days Past Due And Other Nonaccrual Loans [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Past due and other nonaccrual loans | 0 | 0 | ||
Other [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Current | 176,000,000 | 94,000,000 | ||
Past due and other nonaccrual loans | 0 | 0 | ||
Total loans | 176,000,000 | 94,000,000 | ||
Allowance for loan losses | 2,000,000 | 1,000,000 | $ 0 | |
Total bank loans - net | 174,000,000 | 93,000,000 | ||
Other [Member] | 30-59 Days Past Due [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Past due and other nonaccrual loans | 0 | 0 | ||
Other [Member] | 60-89 Days Past Due [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Past due and other nonaccrual loans | 0 | 0 | ||
Other [Member] | >90 Days Past Due And Other Nonaccrual Loans [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Past due and other nonaccrual loans | 0 | 0 | ||
First Mortgage And Home Equity [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Unamortized premiums and discounts and direct origination costs | $ 77,000,000 | $ 78,000,000 | ||
First Mortgage And Home Equity [Member] | California [Member] | Loans Geographic Area [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Concentration risk percentage | 48.00% | 48.00% |
Bank Loans and Related Allowance for Loan Losses (Narrative) (Details) - USD ($) |
12 Months Ended | |
---|---|---|
Dec. 31, 2017 |
Dec. 31, 2016 |
|
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans accruing interest contractually 90 days or more past due | $ 0 | $ 0 |
Balance | 16,504,000,000 | 15,429,000,000 |
First Mortgage [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Balance | $ 10,016,000,000 | 9,134,000,000 |
HELOC's [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing Receivable, Loan Term | 30 years | |
Financing Receivable, Initial Draw Period | 10 years | |
Financing Receivable, Convert to Amortizing Loans, Period | 20 years | |
Balance | $ 1,943,000,000 | 2,350,000,000 |
Percent of loan balance outstanding, borrowers paid only minimum interest due | 38.00% | |
Home Equity Secured By Second Liens [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Balance | $ 1,500,000,000 | |
First Mortgage and Home Equity Loans and Lines of Credit [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Unamortized premiums and discounts and direct origination costs | 77,000,000 | $ 78,000,000 |
Loans pledged as collateral | 11,100,000,000 | |
Adjustable Rate First Mortgage [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Carrying amount of mortgages | $ 9,000,000,000 | |
Percent of loans with interest-only payments | 33.00% | |
Percent of interest only adjustable rate | 58.00% | |
Adjustable Rate First Mortgage [Member] | Minimum [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Fixed rate interest rate period | 3 years | |
Interest-only reset period | 3 years | |
Adjustable Rate First Mortgage [Member] | Maximum [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Fixed rate interest rate period | 10 years |
Bank Loans and Related Allowance for Loan Losses (Changes in Allowance for Loan Losses) (Details) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2017 |
Dec. 31, 2016 |
Dec. 31, 2015 |
|
Allowance for Loan and Lease Losses [Roll Forward] | |||
Balance at beginning of year | $ 26 | $ 31 | $ 42 |
Charge-offs | (3) | (2) | (3) |
Recoveries | 3 | 2 | 3 |
Provision for loan losses | 0 | (5) | (11) |
Balance at end of year | 26 | 26 | 31 |
First Mortgage [Member] | |||
Allowance for Loan and Lease Losses [Roll Forward] | |||
Balance at beginning of year | 17 | 20 | 29 |
Charge-offs | (2) | (1) | (1) |
Recoveries | 1 | 1 | 1 |
Provision for loan losses | 0 | (3) | (9) |
Balance at end of year | 16 | 17 | 20 |
HELOC's [Member] | |||
Allowance for Loan and Lease Losses [Roll Forward] | |||
Balance at beginning of year | 8 | 11 | 13 |
Charge-offs | (1) | (1) | (2) |
Recoveries | 1 | 1 | 2 |
Provision for loan losses | 0 | (3) | (2) |
Balance at end of year | 8 | 8 | 11 |
Other [Member] | |||
Allowance for Loan and Lease Losses [Roll Forward] | |||
Balance at beginning of year | 1 | 0 | |
Charge-offs | 0 | 0 | |
Recoveries | 1 | 0 | |
Provision for loan losses | 0 | 1 | |
Balance at end of year | $ 2 | $ 1 | $ 0 |
Bank Loans and Related Allowance for Loan Losses (Impaired Assets) (Details) - USD ($) $ in Millions |
12 Months Ended | |
---|---|---|
Dec. 31, 2017 |
Dec. 31, 2016 |
|
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Troubled debt restructurings | $ 11 | $ 14 |
Impaired bank loan related assets | 42 | 45 |
Nonperforming Financial Instruments [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total nonperforming assets | 31 | 31 |
Nonperforming Financial Instruments [Member] | Nonaccrual Loans [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total nonperforming assets | 28 | 26 |
Nonperforming Financial Instruments [Member] | Other Real Estate Owned [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total nonperforming assets | $ 3 | $ 5 |
Bank Loans and Related Allowance for Loan Losses (Credit Quality Indicators of Bank Loan Portfolio) (Details) $ in Millions |
Dec. 31, 2017
USD ($)
credit_rating
|
Dec. 31, 2016
USD ($)
credit_rating
|
---|---|---|
Financing Receivable, Recorded Investment [Line Items] | ||
Balance | $ 16,504 | $ 15,429 |
First Mortgage [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Balance | $ 10,016 | $ 9,134 |
Weighted Average Updated FICO | credit_rating | 775 | 773 |
Percent of Loans that are on Nonaccrual Status | 0.14% | 0.10% |
First Mortgage [Member] | Origination FICO Score Below 620 [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Balance | $ 6 | $ 8 |
First Mortgage [Member] | Origination FICO Score 620 Through 679 [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Balance | 89 | 92 |
First Mortgage [Member] | Origination FICO Score 680 Through 739 [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Balance | 1,569 | 1,427 |
First Mortgage [Member] | Origination FICO Score 740 And Above [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Balance | 8,352 | 7,607 |
First Mortgage [Member] | Year of origination Pre 2013 [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Balance | 1,478 | 2,136 |
First Mortgage [Member] | Year of origination 2013 [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Balance | 1,326 | 1,746 |
First Mortgage [Member] | Year of origination 2014 [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Balance | 530 | 685 |
First Mortgage [Member] | Year of origination 2015 [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Balance | 1,218 | 1,458 |
First Mortgage [Member] | Year of origination 2016 [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Balance | 2,886 | 3,109 |
First Mortgage [Member] | Year of origination 2017 [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Balance | 2,578 | |
First Mortgage [Member] | Estimated Current LTV 70% And Below [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Balance | $ 9,046 | $ 8,350 |
Weighted Average Updated FICO | credit_rating | 775 | 774 |
Percent of Loans that are on Nonaccrual Status | 0.09% | 0.04% |
First Mortgage [Member] | Estimated Current LTV Greater Than 70% through 90% [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Balance | $ 961 | $ 743 |
Weighted Average Updated FICO | credit_rating | 769 | 768 |
Percent of Loans that are on Nonaccrual Status | 0.46% | 0.35% |
First Mortgage [Member] | Estimated Current LTV Greater Than 90% through 100% [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Balance | $ 5 | $ 21 |
Weighted Average Updated FICO | credit_rating | 714 | 747 |
Percent of Loans that are on Nonaccrual Status | 10.49% | 2.08% |
First Mortgage [Member] | Estimated Current LTV Greater Than 100% [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Balance | $ 4 | $ 20 |
Weighted Average Updated FICO | credit_rating | 713 | 709 |
Percent of Loans that are on Nonaccrual Status | 6.23% | 14.50% |
First Mortgage [Member] | Origination Loan To Value Ratio 70% And Below [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Balance | $ 7,569 | $ 6,865 |
First Mortgage [Member] | Origination Loan to Value Ratio Greater Than 70% Through 90% [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Balance | 2,441 | 2,260 |
First Mortgage [Member] | Origination Loan to Value Ratio Greater Than 90% Through 100% [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Balance | 6 | 9 |
HELOC's [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Balance | $ 1,943 | $ 2,350 |
Weighted Average Updated FICO | credit_rating | 770 | 769 |
Utilization Rate | 33.00% | 36.00% |
Percent of Loans that are on Nonaccrual Status | 0.27% | 0.20% |
HELOC's [Member] | Origination FICO Score Below 620 [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Balance | $ 1 | $ 0 |
HELOC's [Member] | Origination FICO Score 620 Through 679 [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Balance | 10 | 13 |
HELOC's [Member] | Origination FICO Score 680 Through 739 [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Balance | 365 | 432 |
HELOC's [Member] | Origination FICO Score 740 And Above [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Balance | 1,567 | 1,905 |
HELOC's [Member] | Year of origination Pre 2013 [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Balance | 1,349 | 1,765 |
HELOC's [Member] | Year of origination 2013 [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Balance | 147 | 193 |
HELOC's [Member] | Year of origination 2014 [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Balance | 116 | 152 |
HELOC's [Member] | Year of origination 2015 [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Balance | 128 | 146 |
HELOC's [Member] | Year of origination 2016 [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Balance | 111 | 94 |
HELOC's [Member] | Year of origination 2017 [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Balance | 92 | |
HELOC's [Member] | Estimated Current LTV 70% And Below [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Balance | $ 1,773 | $ 2,070 |
Weighted Average Updated FICO | credit_rating | 772 | 771 |
Utilization Rate | 32.00% | 35.00% |
Percent of Loans that are on Nonaccrual Status | 0.18% | 0.12% |
HELOC's [Member] | Estimated Current LTV Greater Than 70% through 90% [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Balance | $ 148 | $ 234 |
Weighted Average Updated FICO | credit_rating | 755 | 757 |
Utilization Rate | 47.00% | 50.00% |
Percent of Loans that are on Nonaccrual Status | 0.84% | 0.40% |
HELOC's [Member] | Estimated Current LTV Greater Than 90% through 100% [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Balance | $ 14 | $ 29 |
Weighted Average Updated FICO | credit_rating | 742 | 747 |
Utilization Rate | 64.00% | 66.00% |
Percent of Loans that are on Nonaccrual Status | 2.85% | 1.74% |
HELOC's [Member] | Estimated Current LTV Greater Than 100% [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Balance | $ 8 | $ 17 |
Weighted Average Updated FICO | credit_rating | 718 | 728 |
Utilization Rate | 72.00% | 70.00% |
Percent of Loans that are on Nonaccrual Status | 4.91% | 3.73% |
HELOC's [Member] | Origination Loan To Value Ratio 70% And Below [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Balance | $ 1,360 | $ 1,628 |
HELOC's [Member] | Origination Loan to Value Ratio Greater Than 70% Through 90% [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Balance | 574 | 709 |
HELOC's [Member] | Origination Loan to Value Ratio Greater Than 90% Through 100% [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Balance | 9 | 13 |
Pledged asset lines [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Balance | 4,369 | 3,851 |
Pledged asset lines [Member] | Weighted Average Loan to Value Ratio =70% [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Balance | $ 4,369 | $ 3,851 |
Weighted Average Updated FICO | credit_rating | 765 | 763 |
Utilization Rate | 41.00% | 46.00% |
Percent of Loans that are on Nonaccrual Status | 0.00% |
Bank Loans and Related Allowance for Loan Losses (Convert to Amortizing Loans) (Details) - HELOC's [Member] $ in Millions |
Dec. 31, 2017
USD ($)
|
---|---|
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Converted to amortizing loan by period end | $ 437 |
Within 1 year | 559 |
1 year – 3 years | 204 |
3 years – 5 years | 149 |
5 years | 594 |
Total | $ 1,943 |
Equipment, Office Facilities, and Property (Schedule of Equipment, Office Facilities, and Property) (Details) - USD ($) $ in Millions |
Dec. 31, 2017 |
Dec. 31, 2016 |
---|---|---|
Property, Plant and Equipment [Line Items] | ||
Total equipment, office facilities, and property | $ 3,551 | $ 3,234 |
Accumulated depreciation and amortization | (2,080) | (1,935) |
Total equipment, office facilities, and property — net | 1,471 | 1,299 |
Software [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total equipment, office facilities, and property | 1,490 | 1,335 |
Buildings [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total equipment, office facilities, and property | 810 | 807 |
Leasehold improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total equipment, office facilities, and property | 357 | 342 |
Information technology equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total equipment, office facilities, and property | 326 | 299 |
Furniture and equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total equipment, office facilities, and property | 193 | 190 |
Land [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total equipment, office facilities, and property | 167 | 168 |
Construction in progress [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total equipment, office facilities, and property | 142 | 26 |
Telecommunications equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total equipment, office facilities, and property | $ 66 | $ 67 |
Equipment, Office Facilities, and Property (Narrative) (Details) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2017 |
Dec. 31, 2016 |
Dec. 31, 2015 |
|
Property, Plant and Equipment [Abstract] | |||
Depreciation and amortization expense for equipment, office facilities, and property | $ 232 | $ 197 | $ 179 |
Intangible Assets and Goodwill (Intangible Assets and Goodwill) (Details) - USD ($) $ in Millions |
Dec. 31, 2017 |
Dec. 31, 2016 |
---|---|---|
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Value | $ 378 | $ 379 |
Accumulated Amortization | 270 | 235 |
Net Carrying Value, Including non-amortizing loan | 108 | 144 |
Client relationships [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Value | 274 | 274 |
Accumulated Amortization | 189 | 169 |
Net Carrying Value, Including non-amortizing loan | 85 | 105 |
Technology [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Value | 89 | 89 |
Accumulated Amortization | 66 | 56 |
Net Carrying Value, Including non-amortizing loan | 23 | 33 |
Trade name [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Value | 15 | 16 |
Accumulated Amortization | 15 | 10 |
Net Carrying Value, Including non-amortizing loan | $ 0 | $ 6 |
Intangible Assets and Goodwill (Narrative) (Details) - USD ($) |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2017 |
Dec. 31, 2016 |
Dec. 31, 2015 |
|
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Intangible asset, amortization expense | $ 37,000,000 | $ 37,000,000 | $ 45,000,000 |
Goodwill impairment | $ 0 | $ 0 | $ 0 |
Intangible Assets and Goodwill (Estimated Future Annual Amortization Expense for Intangible Assets) (Details) $ in Millions |
Dec. 31, 2017
USD ($)
|
---|---|
Goodwill and Intangible Assets Disclosure [Abstract] | |
2018 | $ 30 |
2019 | 27 |
2020 | 22 |
2021 | 15 |
2022 | 11 |
Thereafter | 2 |
Net Carrying Value | $ 107 |
Intangible Assets and Goodwill (Changes in Carrying Amount of Goodwill as Allocated to Reportable Segments) (Details) - USD ($) $ in Millions |
12 Months Ended | |
---|---|---|
Dec. 31, 2017 |
Dec. 31, 2016 |
|
Goodwill [Roll Forward] | ||
Beginning balance | $ 1,227 | $ 1,227 |
Goodwill acquired and other changes during the period | 0 | 0 |
Ending balance | 1,227 | 1,227 |
Investor Services [Member] | ||
Goodwill [Roll Forward] | ||
Beginning balance | 1,096 | 1,096 |
Goodwill acquired and other changes during the period | 0 | 0 |
Ending balance | 1,096 | 1,096 |
Advisor Services [Member] | ||
Goodwill [Roll Forward] | ||
Beginning balance | 131 | 131 |
Goodwill acquired and other changes during the period | 0 | 0 |
Ending balance | $ 131 | $ 131 |
Other Assets (Components of Other Assets) (Details) - USD ($) $ in Millions |
Dec. 31, 2017 |
Dec. 31, 2016 |
---|---|---|
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Accounts receivable | $ 461 | $ 451 |
Interest and dividends receivable | 413 | 325 |
FHLB stock | 405 | 81 |
Other investments | 376 | 243 |
Prepaid expenses | 126 | 90 |
Deferred tax asset — net | 76 | 143 |
Other | 92 | 75 |
Total other assets | $ 1,949 | $ 1,408 |
Variable Interest Entities (Narrative) (Details) - LIHTC Investments [Member] |
12 Months Ended |
---|---|
Dec. 31, 2017 | |
Minimum [Member] | |
Variable Interest Entity [Line Items] | |
Commitment, expected payment date | 2018 |
Maximum [Member] | |
Variable Interest Entity [Line Items] | |
Commitment, expected payment date | 2021 |
Variable Interest Entities (Aggregate Assets, Liabilities and Maximum Exposure to Loss) (Details) - Variable Interest Entity, Not Primary Beneficiary [Member] - USD ($) $ in Millions |
Dec. 31, 2017 |
Dec. 31, 2016 |
---|---|---|
Variable Interest Entity [Line Items] | ||
Aggregate assets | $ 373 | $ 249 |
Aggregate liabilities | 203 | 135 |
Maximum exposure to loss | 429 | 269 |
LIHTC Investments [Member] | ||
Variable Interest Entity [Line Items] | ||
Aggregate assets | 304 | 189 |
Aggregate liabilities | 203 | 135 |
Maximum exposure to loss | 304 | 189 |
Other CRA Investments [Member] | ||
Variable Interest Entity [Line Items] | ||
Aggregate assets | 69 | 60 |
Aggregate liabilities | 0 | 0 |
Maximum exposure to loss | $ 125 | $ 80 |
Bank Deposits (Deposits from Banking Clients Consisting of Interest Bearing and Noninterest Bearing Deposits) (Details) - USD ($) $ in Millions |
Dec. 31, 2017 |
Dec. 31, 2016 |
---|---|---|
Interest-bearing deposits: | ||
Deposits swept from brokerage accounts | $ 148,212 | $ 141,146 |
Checking | 13,388 | 13,842 |
Savings and other | 7,264 | 7,792 |
Total interest-bearing deposits | 168,864 | 162,780 |
Non-interest-bearing deposits | 792 | 674 |
Total bank deposits | $ 169,656 | $ 163,454 |
Borrowings (Long-term Debt Including Unamortized Debt Discounts and Premiums) (Details) - USD ($) $ in Millions |
12 Months Ended | |
---|---|---|
Dec. 31, 2017 |
Dec. 31, 2016 |
|
Debt Instrument [Line Items] | ||
Unamortized discount, net | $ (14) | $ (13) |
Debt issuance costs | (25) | (10) |
Total long-term debt | $ 4,753 | 2,876 |
Lease term | 20 years | |
Senior Notes [Member] | ||
Debt Instrument [Line Items] | ||
Senior Notes | $ 4,731 | 2,581 |
Senior Notes [Member] | Senior Notes Due March 2018 [Member] | ||
Debt Instrument [Line Items] | ||
Fixed Interest Rate | 1.50% | |
Senior Notes | $ 625 | 625 |
Senior Notes [Member] | Senior Notes Due July 2018 [Member] | ||
Debt Instrument [Line Items] | ||
Fixed Interest Rate | 2.20% | |
Senior Notes | $ 275 | 275 |
Senior Notes [Member] | Senior Notes Due 2020 [Member] | ||
Debt Instrument [Line Items] | ||
Fixed Interest Rate | 4.45% | |
Senior Notes | $ 700 | 700 |
Senior Notes [Member] | Senior Notes Due 2022 [Member] | ||
Debt Instrument [Line Items] | ||
Fixed Interest Rate | 3.225% | |
Senior Notes | $ 256 | 256 |
Senior Notes [Member] | Senior Notes Due 2023 [Member] | ||
Debt Instrument [Line Items] | ||
Fixed Interest Rate | 2.65% | |
Senior Notes | $ 800 | 0 |
Senior Notes [Member] | Senior Notes Due 2025 [Member] | ||
Debt Instrument [Line Items] | ||
Fixed Interest Rate | 3.00% | |
Senior Notes | $ 375 | 375 |
Senior Notes [Member] | Senior Notes Due 2026 [Member] | ||
Debt Instrument [Line Items] | ||
Fixed Interest Rate | 3.45% | |
Senior Notes | $ 350 | 350 |
Senior Notes [Member] | Senior Notes Due 2027 [Member] | ||
Debt Instrument [Line Items] | ||
Fixed Interest Rate | 3.20% | |
Senior Notes | $ 650 | 0 |
Senior Notes [Member] | Senior Notes Due 2028 [Member] | ||
Debt Instrument [Line Items] | ||
Fixed Interest Rate | 3.20% | |
Senior Notes | $ 700 | 0 |
Medium-Term Notes [Member] | ||
Debt Instrument [Line Items] | ||
Fixed Interest Rate | 6.375% | |
Medium Term Notes | $ 0 | 250 |
Finance lease obligation [Member] | ||
Debt Instrument [Line Items] | ||
Fixed Interest Rate | 5.45% | |
Finance lease obligation | $ 61 | $ 68 |
Borrowings (Annual Maturities on Long-term Debt Outstanding) (Details) - USD ($) $ in Millions |
Dec. 31, 2017 |
Dec. 31, 2016 |
---|---|---|
Debt Disclosure [Abstract] | ||
2018 | $ 908 | |
2019 | 8 | |
2020 | 709 | |
2021 | 9 | |
2022 | 266 | |
Thereafter | 2,892 | |
Total maturities | 4,792 | |
Unamortized discount, net | (14) | $ (13) |
Debt issuance costs | (25) | (10) |
Total long-term debt | $ 4,753 | $ 2,876 |
Borrowings (Narrative) (Details) - USD ($) |
Dec. 31, 2017 |
Dec. 31, 2016 |
---|---|---|
Line of Credit Facility [Line Items] | ||
FHLB stock | $ 405,000,000 | $ 81,000,000 |
Federal Home Loan Bank Advances [Member] | Schwab Bank [Member] | ||
Line of Credit Facility [Line Items] | ||
FHLB stock | 405,000,000 | 81,000,000 |
Federal Home Loan Bank Advances [Member] | Secured Credit Facility [Member] | ||
Line of Credit Facility [Line Items] | ||
Line of credit facility, current borrowing capacity | 32,300,000,000 | |
Borrowings on line of credit | $ 15,000,000,000 | $ 0 |
Commitments and Contingencies (Narrative) (Details) - USD ($) |
12 Months Ended | |||
---|---|---|---|---|
Dec. 31, 2017 |
Dec. 31, 2016 |
Dec. 31, 2015 |
Aug. 28, 2008 |
|
Loss Contingencies [Line Items] | ||||
Rent expense | $ 136,000,000 | $ 123,000,000 | $ 116,000,000 | |
Aggregate face amount of letter of credit agreements | 225,000,000 | |||
Margin Requirements [Member] | ||||
Loss Contingencies [Line Items] | ||||
Funds drawn under LOC's | 0 | |||
Bond Market Fund Litigation [Member] | Mortgage Backed Securities [Member] | ||||
Loss Contingencies [Line Items] | ||||
Alleged minimum percentage of fund assets invested in CMOs and mortgage-backed securities without obtaining shareholder vote | 25.00% | |||
First Mortgage [Member] | ||||
Loss Contingencies [Line Items] | ||||
Purchased first mortgages and HELOCs | 2,800,000,000 | 3,300,000,000 | ||
Home Equity Line of Credit [Member] | ||||
Loss Contingencies [Line Items] | ||||
Purchased first mortgages and HELOCs | $ 461,000,000 | $ 440,000,000 |
Commitments and Contingencies (Commitments to Extend/Purchase) (Details) - USD ($) $ in Millions |
12 Months Ended | |
---|---|---|
Dec. 31, 2017 |
Dec. 31, 2016 |
|
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Commitments to purchase | $ 10,368 | $ 8,911 |
Home Equity Loans and Lines of Credit, Pledged Asset Lines and Other Lines of Credit [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Commitments to extend credit related to unused HELOCs, PALs, and other lines of credit | 10,060 | 8,445 |
First Mortgage [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Commitments to purchase | $ 308 | $ 466 |
Commitments and Contingencies (Future Annual Minimum Rental Commitments, Net of Contractual Subleases) (Details) $ in Millions |
Dec. 31, 2017
USD ($)
|
---|---|
Operating Leases | |
2018 | $ 137 |
2019 | 119 |
2020 | 109 |
2021 | 86 |
2022 | 68 |
Thereafter | 310 |
Total | 829 |
Subleases | |
2018 | 6 |
2019 | 4 |
2020 | 4 |
2021 | 4 |
2022 | 2 |
Thereafter | 1 |
Total | 21 |
Net | |
2018 | 131 |
2019 | 115 |
2020 | 105 |
2021 | 82 |
2022 | 66 |
Thereafter | 309 |
Total | $ 808 |
Commitments and Contingencies (Purchase Obligations) (Details) $ in Millions |
Dec. 31, 2017
USD ($)
|
---|---|
Commitments and Contingencies Disclosure [Abstract] | |
2018 | $ 305 |
2019 | 148 |
2020 | 71 |
2021 | 26 |
2022 | 22 |
Thereafter | 181 |
Total | $ 753 |
Financial Instruments Subject to Off-Balance Sheet Credit Risk (Narrative) (Details) - USD ($) $ in Millions |
Dec. 31, 2017 |
Dec. 31, 2016 |
---|---|---|
Securities Financing Transaction, Fair Value [Member] | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Fair value of securities borrowed | $ 215 | $ 213 |
Financial Instruments Subject to Off-Balance Sheet Credit Risk (Offsetting Assets and Liabilities) (Details) - USD ($) $ in Millions |
12 Months Ended | |
---|---|---|
Dec. 31, 2017 |
Dec. 31, 2016 |
|
Resale agreements | ||
Gross Assets | $ 6,596 | $ 9,547 |
Gross Amounts Offset in the Consolidated Balance Sheets | 0 | 0 |
Net Amounts Presented in the Consolidated Balance Sheets | 6,596 | 9,547 |
Counterparty Offsetting | 0 | 0 |
Collateral | (6,596) | (9,547) |
Net Amount | 0 | 0 |
Securities borrowed | ||
Gross Assets | 222 | 393 |
Gross Amounts Offset in the Consolidated Balance Sheets | 0 | 0 |
Net Amounts Presented in the Consolidated Balance Sheets | 222 | 393 |
Counterparty Offsetting | (199) | (200) |
Collateral | (22) | (189) |
Net Amount | 1 | 4 |
Total Gross Assets | 6,818 | 9,940 |
Total Assets, Gross Amounts Offset in the Condensed Consolidated Balance Sheets | 0 | 0 |
Total Assets, Net Amounts Presented in the Condensed Consolidated Balance Sheets | 6,818 | 9,940 |
Total Assets, Gross Amounts Not Offset in the Consolidated Balance Sheet, Counterparty Offsetting | (199) | (200) |
Total Assets, Gross Amounts Not Offset in the Consolidated Balance Sheet, Collateral | (6,618) | (9,736) |
Total Assets, Net Amount | 1 | 4 |
Securities loaned | ||
Gross Liabilities | 966 | 1,996 |
Gross Amounts Offset in the Consolidated Balance Sheets | 0 | 0 |
Net Amounts Presented in the Consolidated Balance Sheets | 966 | 1,996 |
Counterparty Offsetting | (199) | (200) |
Collateral | (670) | (1,660) |
Net Amount | 97 | 136 |
Total Gross Liabilities | 966 | 1,996 |
Total Liabilities, Net Amounts Presented in the Consolidated Balance Sheet | 966 | 1,996 |
Total Liabilities, Gross Amounts Not Offset in the Consolidated Balance Sheet, Counterparty Offsetting | (199) | (200) |
Total Liabilities, Gross Amounts Not Offset in the Consolidated Balance Sheet, Collateral | (670) | (1,660) |
Total Liabilities, Net Amount | 97 | 136 |
Offsetting Assets [Line Items] | ||
Fair value of client securities available to be pledged | $ 25,905 | $ 21,516 |
Resale And Repurchase Agreements [Member] | ||
Offsetting Assets [Line Items] | ||
Percentage of collateral to related assets | 102.00% | 102.00% |
Fair value of client securities available to be pledged | $ 6,700 | $ 9,800 |
Financial Instruments Subject to Off-Balance Sheet Credit Risk (Summary of the Fair Value of Client Securities Available to Utilize as Collateral and Amounts Pledged) (Details) - USD ($) $ in Millions |
Dec. 31, 2017 |
Dec. 31, 2016 |
---|---|---|
Securities Financing Transaction [Line Items] | ||
Fair value of client securities available to be pledged | $ 25,905 | $ 21,516 |
Fair value of client securities pledged | 5,075 | 5,193 |
Fulfillment of Requirements with the Options Clearing Corporation [Member] | ||
Securities Financing Transaction [Line Items] | ||
Fair value of client securities pledged | 2,280 | 1,519 |
Fulfillment of Client Short Sales [Member] | ||
Securities Financing Transaction [Line Items] | ||
Fair value of client securities pledged | 2,011 | 2,048 |
Securities Lending to Other Broker-Dealers [Member] | ||
Securities Financing Transaction [Line Items] | ||
Fair value of client securities pledged | 784 | 1,626 |
Fully-Paid Client Securities [Member] | ||
Securities Financing Transaction [Line Items] | ||
Fair value of client securities pledged | $ 78 | $ 58 |
Fair Values of Assets and Liabilities (Fair Value Hierarchy for Assets and Liabilities Measured at Fair Value on a Recurring Basis) (Details) - USD ($) $ in Millions |
Dec. 31, 2017 |
Dec. 31, 2016 |
---|---|---|
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other securities owned | $ 539 | $ 449 |
Available for sale securities | 49,995 | 77,365 |
Estimate of Fair Value Measurement [Member] | Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 2,727 | 1,514 |
Investments segregated and on deposit for regulatory purposes | 5,856 | 8,636 |
Other securities owned | 539 | 449 |
Available for sale securities | 49,995 | 77,365 |
Total | 59,117 | 87,964 |
Estimate of Fair Value Measurement [Member] | Fair Value, Measurements, Recurring [Member] | Money Market Funds [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 2,727 | 1,514 |
Estimate of Fair Value Measurement [Member] | Fair Value, Measurements, Recurring [Member] | Certificates of deposit [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments segregated and on deposit for regulatory purposes | 2,198 | 2,525 |
Available for sale securities | 2,041 | 2,071 |
Estimate of Fair Value Measurement [Member] | Fair Value, Measurements, Recurring [Member] | US Government Debt Securities [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments segregated and on deposit for regulatory purposes | 3,658 | 6,111 |
Estimate of Fair Value Measurement [Member] | Fair Value, Measurements, Recurring [Member] | Equity and bond mutual funds [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other securities owned | 318 | 272 |
Estimate of Fair Value Measurement [Member] | Fair Value, Measurements, Recurring [Member] | Schwab Funds money market funds [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other securities owned | 135 | 108 |
Estimate of Fair Value Measurement [Member] | Fair Value, Measurements, Recurring [Member] | State and municipal debt obligations [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other securities owned | 52 | 41 |
Estimate of Fair Value Measurement [Member] | Fair Value, Measurements, Recurring [Member] | Equity, U.S. Government and corporate debt, and other securities [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other securities owned | 34 | 28 |
Estimate of Fair Value Measurement [Member] | Fair Value, Measurements, Recurring [Member] | U.S. agency mortgage-backed securities [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | 20,929 | 33,195 |
Estimate of Fair Value Measurement [Member] | Fair Value, Measurements, Recurring [Member] | Asset-backed securities [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | 9,047 | 20,335 |
Estimate of Fair Value Measurement [Member] | Fair Value, Measurements, Recurring [Member] | Corporate debt securities [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | 6,169 | 9,852 |
Estimate of Fair Value Measurement [Member] | Fair Value, Measurements, Recurring [Member] | U.S. Treasury securities [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | 9,500 | 8,623 |
Estimate of Fair Value Measurement [Member] | Fair Value, Measurements, Recurring [Member] | Commercial paper [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | 313 | 214 |
Estimate of Fair Value Measurement [Member] | Fair Value, Measurements, Recurring [Member] | U.S. agency notes [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | 1,906 | 1,907 |
Estimate of Fair Value Measurement [Member] | Fair Value, Measurements, Recurring [Member] | U.S. state and municipal securities [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | 1,123 | |
Estimate of Fair Value Measurement [Member] | Fair Value, Measurements, Recurring [Member] | Non-agency commercial mortgage-backed securities [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | 40 | 45 |
Estimate of Fair Value Measurement [Member] | Fair Value, Measurements, Recurring [Member] | Foreign government agency securities [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | 50 | |
Estimate of Fair Value Measurement [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 2,727 | 1,514 |
Investments segregated and on deposit for regulatory purposes | 0 | 0 |
Other securities owned | 455 | 382 |
Available for sale securities | 0 | 0 |
Total | 3,182 | 1,896 |
Estimate of Fair Value Measurement [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Fair Value, Measurements, Recurring [Member] | Money Market Funds [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 2,727 | 1,514 |
Estimate of Fair Value Measurement [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Fair Value, Measurements, Recurring [Member] | Certificates of deposit [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments segregated and on deposit for regulatory purposes | 0 | 0 |
Available for sale securities | 0 | 0 |
Estimate of Fair Value Measurement [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Fair Value, Measurements, Recurring [Member] | US Government Debt Securities [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments segregated and on deposit for regulatory purposes | 0 | 0 |
Estimate of Fair Value Measurement [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Fair Value, Measurements, Recurring [Member] | Equity and bond mutual funds [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other securities owned | 318 | 272 |
Estimate of Fair Value Measurement [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Fair Value, Measurements, Recurring [Member] | Schwab Funds money market funds [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other securities owned | 135 | 108 |
Estimate of Fair Value Measurement [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Fair Value, Measurements, Recurring [Member] | State and municipal debt obligations [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other securities owned | 0 | 0 |
Estimate of Fair Value Measurement [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Fair Value, Measurements, Recurring [Member] | Equity, U.S. Government and corporate debt, and other securities [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other securities owned | 2 | 2 |
Estimate of Fair Value Measurement [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Fair Value, Measurements, Recurring [Member] | U.S. agency mortgage-backed securities [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | 0 | 0 |
Estimate of Fair Value Measurement [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Fair Value, Measurements, Recurring [Member] | Asset-backed securities [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | 0 | 0 |
Estimate of Fair Value Measurement [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Fair Value, Measurements, Recurring [Member] | Corporate debt securities [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | 0 | 0 |
Estimate of Fair Value Measurement [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Fair Value, Measurements, Recurring [Member] | U.S. Treasury securities [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | 0 | 0 |
Estimate of Fair Value Measurement [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Fair Value, Measurements, Recurring [Member] | Commercial paper [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | 0 | 0 |
Estimate of Fair Value Measurement [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Fair Value, Measurements, Recurring [Member] | U.S. agency notes [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | 0 | 0 |
Estimate of Fair Value Measurement [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Fair Value, Measurements, Recurring [Member] | U.S. state and municipal securities [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | 0 | |
Estimate of Fair Value Measurement [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Fair Value, Measurements, Recurring [Member] | Non-agency commercial mortgage-backed securities [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | 0 | 0 |
Estimate of Fair Value Measurement [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Fair Value, Measurements, Recurring [Member] | Foreign government agency securities [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | 0 | |
Estimate of Fair Value Measurement [Member] | Significant Other Observable Inputs (Level 2) [Member] | Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 0 | 0 |
Investments segregated and on deposit for regulatory purposes | 5,856 | 8,636 |
Other securities owned | 84 | 67 |
Available for sale securities | 49,995 | 77,365 |
Total | 55,935 | 86,068 |
Estimate of Fair Value Measurement [Member] | Significant Other Observable Inputs (Level 2) [Member] | Fair Value, Measurements, Recurring [Member] | Money Market Funds [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 0 | 0 |
Estimate of Fair Value Measurement [Member] | Significant Other Observable Inputs (Level 2) [Member] | Fair Value, Measurements, Recurring [Member] | Certificates of deposit [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments segregated and on deposit for regulatory purposes | 2,198 | 2,525 |
Available for sale securities | 2,041 | 2,071 |
Estimate of Fair Value Measurement [Member] | Significant Other Observable Inputs (Level 2) [Member] | Fair Value, Measurements, Recurring [Member] | US Government Debt Securities [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments segregated and on deposit for regulatory purposes | 3,658 | 6,111 |
Estimate of Fair Value Measurement [Member] | Significant Other Observable Inputs (Level 2) [Member] | Fair Value, Measurements, Recurring [Member] | Equity and bond mutual funds [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other securities owned | 0 | 0 |
Estimate of Fair Value Measurement [Member] | Significant Other Observable Inputs (Level 2) [Member] | Fair Value, Measurements, Recurring [Member] | Schwab Funds money market funds [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other securities owned | 0 | 0 |
Estimate of Fair Value Measurement [Member] | Significant Other Observable Inputs (Level 2) [Member] | Fair Value, Measurements, Recurring [Member] | State and municipal debt obligations [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other securities owned | 52 | 41 |
Estimate of Fair Value Measurement [Member] | Significant Other Observable Inputs (Level 2) [Member] | Fair Value, Measurements, Recurring [Member] | Equity, U.S. Government and corporate debt, and other securities [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other securities owned | 32 | 26 |
Estimate of Fair Value Measurement [Member] | Significant Other Observable Inputs (Level 2) [Member] | Fair Value, Measurements, Recurring [Member] | U.S. agency mortgage-backed securities [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | 20,929 | 33,195 |
Estimate of Fair Value Measurement [Member] | Significant Other Observable Inputs (Level 2) [Member] | Fair Value, Measurements, Recurring [Member] | Asset-backed securities [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | 9,047 | 20,335 |
Estimate of Fair Value Measurement [Member] | Significant Other Observable Inputs (Level 2) [Member] | Fair Value, Measurements, Recurring [Member] | Corporate debt securities [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | 6,169 | 9,852 |
Estimate of Fair Value Measurement [Member] | Significant Other Observable Inputs (Level 2) [Member] | Fair Value, Measurements, Recurring [Member] | U.S. Treasury securities [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | 9,500 | 8,623 |
Estimate of Fair Value Measurement [Member] | Significant Other Observable Inputs (Level 2) [Member] | Fair Value, Measurements, Recurring [Member] | Commercial paper [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | 313 | 214 |
Estimate of Fair Value Measurement [Member] | Significant Other Observable Inputs (Level 2) [Member] | Fair Value, Measurements, Recurring [Member] | U.S. agency notes [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | 1,906 | 1,907 |
Estimate of Fair Value Measurement [Member] | Significant Other Observable Inputs (Level 2) [Member] | Fair Value, Measurements, Recurring [Member] | U.S. state and municipal securities [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | 1,123 | |
Estimate of Fair Value Measurement [Member] | Significant Other Observable Inputs (Level 2) [Member] | Fair Value, Measurements, Recurring [Member] | Non-agency commercial mortgage-backed securities [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | 40 | 45 |
Estimate of Fair Value Measurement [Member] | Significant Other Observable Inputs (Level 2) [Member] | Fair Value, Measurements, Recurring [Member] | Foreign government agency securities [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | 50 | |
Estimate of Fair Value Measurement [Member] | Significant Unobservable Inputs (Level 3) [Member] | Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 0 | 0 |
Investments segregated and on deposit for regulatory purposes | 0 | 0 |
Other securities owned | 0 | 0 |
Available for sale securities | 0 | 0 |
Total | 0 | 0 |
Estimate of Fair Value Measurement [Member] | Significant Unobservable Inputs (Level 3) [Member] | Fair Value, Measurements, Recurring [Member] | Money Market Funds [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 0 | 0 |
Estimate of Fair Value Measurement [Member] | Significant Unobservable Inputs (Level 3) [Member] | Fair Value, Measurements, Recurring [Member] | Certificates of deposit [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments segregated and on deposit for regulatory purposes | 0 | 0 |
Available for sale securities | 0 | 0 |
Estimate of Fair Value Measurement [Member] | Significant Unobservable Inputs (Level 3) [Member] | Fair Value, Measurements, Recurring [Member] | US Government Debt Securities [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments segregated and on deposit for regulatory purposes | 0 | 0 |
Estimate of Fair Value Measurement [Member] | Significant Unobservable Inputs (Level 3) [Member] | Fair Value, Measurements, Recurring [Member] | Equity and bond mutual funds [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other securities owned | 0 | 0 |
Estimate of Fair Value Measurement [Member] | Significant Unobservable Inputs (Level 3) [Member] | Fair Value, Measurements, Recurring [Member] | Schwab Funds money market funds [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other securities owned | 0 | 0 |
Estimate of Fair Value Measurement [Member] | Significant Unobservable Inputs (Level 3) [Member] | Fair Value, Measurements, Recurring [Member] | State and municipal debt obligations [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other securities owned | 0 | 0 |
Estimate of Fair Value Measurement [Member] | Significant Unobservable Inputs (Level 3) [Member] | Fair Value, Measurements, Recurring [Member] | Equity, U.S. Government and corporate debt, and other securities [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other securities owned | 0 | 0 |
Estimate of Fair Value Measurement [Member] | Significant Unobservable Inputs (Level 3) [Member] | Fair Value, Measurements, Recurring [Member] | U.S. agency mortgage-backed securities [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | 0 | 0 |
Estimate of Fair Value Measurement [Member] | Significant Unobservable Inputs (Level 3) [Member] | Fair Value, Measurements, Recurring [Member] | Asset-backed securities [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | 0 | 0 |
Estimate of Fair Value Measurement [Member] | Significant Unobservable Inputs (Level 3) [Member] | Fair Value, Measurements, Recurring [Member] | Corporate debt securities [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | 0 | 0 |
Estimate of Fair Value Measurement [Member] | Significant Unobservable Inputs (Level 3) [Member] | Fair Value, Measurements, Recurring [Member] | U.S. Treasury securities [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | 0 | 0 |
Estimate of Fair Value Measurement [Member] | Significant Unobservable Inputs (Level 3) [Member] | Fair Value, Measurements, Recurring [Member] | Commercial paper [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | 0 | 0 |
Estimate of Fair Value Measurement [Member] | Significant Unobservable Inputs (Level 3) [Member] | Fair Value, Measurements, Recurring [Member] | U.S. agency notes [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | 0 | 0 |
Estimate of Fair Value Measurement [Member] | Significant Unobservable Inputs (Level 3) [Member] | Fair Value, Measurements, Recurring [Member] | U.S. state and municipal securities [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | 0 | |
Estimate of Fair Value Measurement [Member] | Significant Unobservable Inputs (Level 3) [Member] | Fair Value, Measurements, Recurring [Member] | Non-agency commercial mortgage-backed securities [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | 0 | $ 0 |
Estimate of Fair Value Measurement [Member] | Significant Unobservable Inputs (Level 3) [Member] | Fair Value, Measurements, Recurring [Member] | Foreign government agency securities [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | $ 0 |
Fair Values of Assets and Liabilities (Fair Value of Other Financial Instruments) (Details) - USD ($) $ in Millions |
Dec. 31, 2017 |
Dec. 31, 2016 |
---|---|---|
Assets: | ||
Fair Value | $ 120,373 | $ 74,444 |
Reported Value Measurement [Member] | ||
Assets: | ||
Cash and cash equivalents | 11,490 | 9,314 |
Cash and investments segregated and on deposit for regulatory purposes | 9,277 | 13,533 |
Receivables from brokers, dealers, and clearing organizations | 649 | 728 |
Receivables from brokerage clients — net | 20,568 | 17,151 |
Fair Value | 120,926 | 75,203 |
Bank loans, net | 16,478 | 15,403 |
Other assets | 781 | 328 |
Total | 180,169 | 131,660 |
Liabilities: | ||
Bank deposits | 169,656 | 163,454 |
Payables to brokers, dealers, and clearing organizations | 1,287 | 2,407 |
Payables to brokerage clients | 31,243 | 35,894 |
Accrued expenses and other liabilities | 1,463 | 1,169 |
Short-term borrowings | 15,000 | |
Long-term debt | 4,753 | 2,876 |
Total | 223,402 | 205,800 |
Reported Value Measurement [Member] | First Mortgage [Member] | ||
Assets: | ||
Bank loans, net | 10,000 | 9,117 |
Reported Value Measurement [Member] | HELOC's [Member] | ||
Assets: | ||
Bank loans, net | 1,935 | 2,342 |
Reported Value Measurement [Member] | Pledged asset lines [Member] | ||
Assets: | ||
Bank loans, net | 4,369 | 3,851 |
Reported Value Measurement [Member] | Other [Member] | ||
Assets: | ||
Bank loans, net | 174 | 93 |
Reported Value Measurement [Member] | U.S. agency mortgage-backed securities [Member] | ||
Assets: | ||
Fair Value | 101,197 | 72,439 |
Reported Value Measurement [Member] | Non-agency commercial mortgage-backed securities [Member] | ||
Assets: | ||
Fair Value | 994 | 997 |
Reported Value Measurement [Member] | Asset-backed securities [Member] | ||
Assets: | ||
Fair Value | 12,937 | 941 |
Reported Value Measurement [Member] | Corporate debt securities [Member] | ||
Assets: | ||
Fair Value | 4,078 | 436 |
Reported Value Measurement [Member] | U.S. Treasury securities [Member] | ||
Assets: | ||
Fair Value | 223 | 223 |
Reported Value Measurement [Member] | Commercial paper [Member] | ||
Assets: | ||
Fair Value | 99 | |
Reported Value Measurement [Member] | U.S. state and municipal securities [Member] | ||
Assets: | ||
Fair Value | 1,247 | 68 |
Reported Value Measurement [Member] | Certificates of deposit [Member] | ||
Assets: | ||
Fair Value | 200 | |
Reported Value Measurement [Member] | Foreign government agency securities [Member] | ||
Assets: | ||
Fair Value | 50 | |
Portion at Other than Fair Value Measurement [Member] | ||
Assets: | ||
Cash and cash equivalents | 11,490 | 9,314 |
Cash and investments segregated and on deposit for regulatory purposes | 9,277 | 13,533 |
Receivables from brokers, dealers, and clearing organizations | 649 | 728 |
Receivables from brokerage clients — net | 20,568 | 17,151 |
Fair Value | 120,373 | 74,444 |
Bank loans, net | 16,485 | 15,467 |
Other assets | 781 | 328 |
Total | 179,623 | 130,965 |
Liabilities: | ||
Bank deposits | 169,656 | 163,454 |
Payables to brokers, dealers, and clearing organizations | 1,287 | 2,407 |
Payables to brokerage clients | 31,243 | 35,894 |
Accrued expenses and other liabilities | 1,463 | 1,169 |
Short-term borrowings | 15,000 | |
Long-term debt | 4,811 | 2,941 |
Total | 223,460 | 205,865 |
Portion at Other than Fair Value Measurement [Member] | First Mortgage [Member] | ||
Assets: | ||
Bank loans, net | 9,917 | 9,064 |
Portion at Other than Fair Value Measurement [Member] | HELOC's [Member] | ||
Assets: | ||
Bank loans, net | 2,025 | 2,458 |
Portion at Other than Fair Value Measurement [Member] | Pledged asset lines [Member] | ||
Assets: | ||
Bank loans, net | 4,369 | 3,851 |
Portion at Other than Fair Value Measurement [Member] | Other [Member] | ||
Assets: | ||
Bank loans, net | 174 | 94 |
Portion at Other than Fair Value Measurement [Member] | U.S. agency mortgage-backed securities [Member] | ||
Assets: | ||
Fair Value | 100,453 | 71,677 |
Portion at Other than Fair Value Measurement [Member] | Non-agency commercial mortgage-backed securities [Member] | ||
Assets: | ||
Fair Value | 999 | 1,004 |
Portion at Other than Fair Value Measurement [Member] | Asset-backed securities [Member] | ||
Assets: | ||
Fair Value | 13,062 | 941 |
Portion at Other than Fair Value Measurement [Member] | Corporate debt securities [Member] | ||
Assets: | ||
Fair Value | 4,086 | 436 |
Portion at Other than Fair Value Measurement [Member] | U.S. Treasury securities [Member] | ||
Assets: | ||
Fair Value | 220 | 219 |
Portion at Other than Fair Value Measurement [Member] | Commercial paper [Member] | ||
Assets: | ||
Fair Value | 99 | |
Portion at Other than Fair Value Measurement [Member] | U.S. state and municipal securities [Member] | ||
Assets: | ||
Fair Value | 1,304 | 68 |
Portion at Other than Fair Value Measurement [Member] | Certificates of deposit [Member] | ||
Assets: | ||
Fair Value | 200 | |
Portion at Other than Fair Value Measurement [Member] | Foreign government agency securities [Member] | ||
Assets: | ||
Fair Value | 49 | |
Portion at Other than Fair Value Measurement [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ||
Assets: | ||
Cash and cash equivalents | 0 | 0 |
Cash and investments segregated and on deposit for regulatory purposes | 0 | 0 |
Receivables from brokers, dealers, and clearing organizations | 0 | 0 |
Receivables from brokerage clients — net | 0 | 0 |
Fair Value | 0 | 0 |
Bank loans, net | 0 | 0 |
Other assets | 0 | 0 |
Total | 0 | 0 |
Liabilities: | ||
Bank deposits | 0 | 0 |
Payables to brokers, dealers, and clearing organizations | 0 | 0 |
Payables to brokerage clients | 0 | 0 |
Accrued expenses and other liabilities | 0 | 0 |
Short-term borrowings | 0 | |
Long-term debt | 0 | 0 |
Total | 0 | 0 |
Portion at Other than Fair Value Measurement [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | First Mortgage [Member] | ||
Assets: | ||
Bank loans, net | 0 | 0 |
Portion at Other than Fair Value Measurement [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | HELOC's [Member] | ||
Assets: | ||
Bank loans, net | 0 | 0 |
Portion at Other than Fair Value Measurement [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Pledged asset lines [Member] | ||
Assets: | ||
Bank loans, net | 0 | 0 |
Portion at Other than Fair Value Measurement [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Other [Member] | ||
Assets: | ||
Bank loans, net | 0 | 0 |
Portion at Other than Fair Value Measurement [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | U.S. agency mortgage-backed securities [Member] | ||
Assets: | ||
Fair Value | 0 | 0 |
Portion at Other than Fair Value Measurement [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Non-agency commercial mortgage-backed securities [Member] | ||
Assets: | ||
Fair Value | 0 | 0 |
Portion at Other than Fair Value Measurement [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Asset-backed securities [Member] | ||
Assets: | ||
Fair Value | 0 | 0 |
Portion at Other than Fair Value Measurement [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Corporate debt securities [Member] | ||
Assets: | ||
Fair Value | 0 | 0 |
Portion at Other than Fair Value Measurement [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | U.S. Treasury securities [Member] | ||
Assets: | ||
Fair Value | 0 | 0 |
Portion at Other than Fair Value Measurement [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Commercial paper [Member] | ||
Assets: | ||
Fair Value | 0 | |
Portion at Other than Fair Value Measurement [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | U.S. state and municipal securities [Member] | ||
Assets: | ||
Fair Value | 0 | 0 |
Portion at Other than Fair Value Measurement [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Certificates of deposit [Member] | ||
Assets: | ||
Fair Value | 0 | |
Portion at Other than Fair Value Measurement [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Foreign government agency securities [Member] | ||
Assets: | ||
Fair Value | 0 | |
Portion at Other than Fair Value Measurement [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||
Assets: | ||
Cash and cash equivalents | 11,490 | 9,314 |
Cash and investments segregated and on deposit for regulatory purposes | 9,277 | 13,533 |
Receivables from brokers, dealers, and clearing organizations | 649 | 728 |
Receivables from brokerage clients — net | 20,568 | 17,151 |
Fair Value | 120,373 | 74,444 |
Bank loans, net | 16,485 | 15,467 |
Other assets | 781 | 328 |
Total | 179,623 | 130,965 |
Liabilities: | ||
Bank deposits | 169,656 | 163,454 |
Payables to brokers, dealers, and clearing organizations | 1,287 | 2,407 |
Payables to brokerage clients | 31,243 | 35,894 |
Accrued expenses and other liabilities | 1,463 | 1,169 |
Short-term borrowings | 15,000 | |
Long-term debt | 4,811 | 2,941 |
Total | 223,460 | 205,865 |
Portion at Other than Fair Value Measurement [Member] | Significant Other Observable Inputs (Level 2) [Member] | First Mortgage [Member] | ||
Assets: | ||
Bank loans, net | 9,917 | 9,064 |
Portion at Other than Fair Value Measurement [Member] | Significant Other Observable Inputs (Level 2) [Member] | HELOC's [Member] | ||
Assets: | ||
Bank loans, net | 2,025 | 2,458 |
Portion at Other than Fair Value Measurement [Member] | Significant Other Observable Inputs (Level 2) [Member] | Pledged asset lines [Member] | ||
Assets: | ||
Bank loans, net | 4,369 | 3,851 |
Portion at Other than Fair Value Measurement [Member] | Significant Other Observable Inputs (Level 2) [Member] | Other [Member] | ||
Assets: | ||
Bank loans, net | 174 | 94 |
Portion at Other than Fair Value Measurement [Member] | Significant Other Observable Inputs (Level 2) [Member] | U.S. agency mortgage-backed securities [Member] | ||
Assets: | ||
Fair Value | 100,453 | 71,677 |
Portion at Other than Fair Value Measurement [Member] | Significant Other Observable Inputs (Level 2) [Member] | Non-agency commercial mortgage-backed securities [Member] | ||
Assets: | ||
Fair Value | 999 | 1,004 |
Portion at Other than Fair Value Measurement [Member] | Significant Other Observable Inputs (Level 2) [Member] | Asset-backed securities [Member] | ||
Assets: | ||
Fair Value | 13,062 | 941 |
Portion at Other than Fair Value Measurement [Member] | Significant Other Observable Inputs (Level 2) [Member] | Corporate debt securities [Member] | ||
Assets: | ||
Fair Value | 4,086 | 436 |
Portion at Other than Fair Value Measurement [Member] | Significant Other Observable Inputs (Level 2) [Member] | U.S. Treasury securities [Member] | ||
Assets: | ||
Fair Value | 220 | 219 |
Portion at Other than Fair Value Measurement [Member] | Significant Other Observable Inputs (Level 2) [Member] | Commercial paper [Member] | ||
Assets: | ||
Fair Value | 99 | |
Portion at Other than Fair Value Measurement [Member] | Significant Other Observable Inputs (Level 2) [Member] | U.S. state and municipal securities [Member] | ||
Assets: | ||
Fair Value | 1,304 | 68 |
Portion at Other than Fair Value Measurement [Member] | Significant Other Observable Inputs (Level 2) [Member] | Certificates of deposit [Member] | ||
Assets: | ||
Fair Value | 200 | |
Portion at Other than Fair Value Measurement [Member] | Significant Other Observable Inputs (Level 2) [Member] | Foreign government agency securities [Member] | ||
Assets: | ||
Fair Value | 49 | |
Portion at Other than Fair Value Measurement [Member] | Significant Unobservable Inputs (Level 3) [Member] | ||
Assets: | ||
Cash and cash equivalents | 0 | 0 |
Cash and investments segregated and on deposit for regulatory purposes | 0 | 0 |
Receivables from brokers, dealers, and clearing organizations | 0 | 0 |
Receivables from brokerage clients — net | 0 | 0 |
Fair Value | 0 | 0 |
Bank loans, net | 0 | 0 |
Other assets | 0 | 0 |
Total | 0 | 0 |
Liabilities: | ||
Bank deposits | 0 | 0 |
Payables to brokers, dealers, and clearing organizations | 0 | 0 |
Payables to brokerage clients | 0 | 0 |
Accrued expenses and other liabilities | 0 | 0 |
Short-term borrowings | 0 | |
Long-term debt | 0 | 0 |
Total | 0 | 0 |
Portion at Other than Fair Value Measurement [Member] | Significant Unobservable Inputs (Level 3) [Member] | First Mortgage [Member] | ||
Assets: | ||
Bank loans, net | 0 | 0 |
Portion at Other than Fair Value Measurement [Member] | Significant Unobservable Inputs (Level 3) [Member] | HELOC's [Member] | ||
Assets: | ||
Bank loans, net | 0 | 0 |
Portion at Other than Fair Value Measurement [Member] | Significant Unobservable Inputs (Level 3) [Member] | Pledged asset lines [Member] | ||
Assets: | ||
Bank loans, net | 0 | 0 |
Portion at Other than Fair Value Measurement [Member] | Significant Unobservable Inputs (Level 3) [Member] | Other [Member] | ||
Assets: | ||
Bank loans, net | 0 | 0 |
Portion at Other than Fair Value Measurement [Member] | Significant Unobservable Inputs (Level 3) [Member] | U.S. agency mortgage-backed securities [Member] | ||
Assets: | ||
Fair Value | 0 | 0 |
Portion at Other than Fair Value Measurement [Member] | Significant Unobservable Inputs (Level 3) [Member] | Non-agency commercial mortgage-backed securities [Member] | ||
Assets: | ||
Fair Value | 0 | 0 |
Portion at Other than Fair Value Measurement [Member] | Significant Unobservable Inputs (Level 3) [Member] | Asset-backed securities [Member] | ||
Assets: | ||
Fair Value | 0 | 0 |
Portion at Other than Fair Value Measurement [Member] | Significant Unobservable Inputs (Level 3) [Member] | Corporate debt securities [Member] | ||
Assets: | ||
Fair Value | 0 | 0 |
Portion at Other than Fair Value Measurement [Member] | Significant Unobservable Inputs (Level 3) [Member] | U.S. Treasury securities [Member] | ||
Assets: | ||
Fair Value | 0 | 0 |
Portion at Other than Fair Value Measurement [Member] | Significant Unobservable Inputs (Level 3) [Member] | Commercial paper [Member] | ||
Assets: | ||
Fair Value | 0 | |
Portion at Other than Fair Value Measurement [Member] | Significant Unobservable Inputs (Level 3) [Member] | U.S. state and municipal securities [Member] | ||
Assets: | ||
Fair Value | 0 | $ 0 |
Portion at Other than Fair Value Measurement [Member] | Significant Unobservable Inputs (Level 3) [Member] | Certificates of deposit [Member] | ||
Assets: | ||
Fair Value | 0 | |
Portion at Other than Fair Value Measurement [Member] | Significant Unobservable Inputs (Level 3) [Member] | Foreign government agency securities [Member] | ||
Assets: | ||
Fair Value | $ 0 |
Stockholders' Equity (Narrative) (Details) - $ / shares |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2017 |
Dec. 31, 2016 |
Dec. 31, 2015 |
|
Class of Stock [Line Items] | |||
Preferred stock, shares authorized (in shares) | 9,940,000 | 9,940,000 | |
Preferred stock, par value (USD per share) | $ 0.01 | $ 0.01 | |
Common Stock [Member] | |||
Class of Stock [Line Items] | |||
Shares issued (in shares) | 0 | 0 | 0 |
Stockholders' Equity (Preferred Stock Issued and Outstanding) (Details) - USD ($) $ / shares in Units, $ in Millions |
12 Months Ended | |
---|---|---|
Dec. 31, 2017 |
Dec. 31, 2016 |
|
Class of Stock [Line Items] | ||
Shares issued (in shares) | 1,761,000 | 2,241,000 |
Shares outstanding (in shares) | 1,761,000 | 2,241,000 |
Carrying Value | $ 2,793 | $ 2,783 |
Series B Preferred Stock [Member] | ||
Class of Stock [Line Items] | ||
Shares issued (in shares) | 0 | 485,000 |
Shares outstanding (in shares) | 0 | 485,000 |
Liquidation preference (USD per share) | $ 1,000 | |
Carrying Value | $ 0 | $ 482 |
Dividend Rate in Effect | 0.00% | |
Series C Preferred Stock [Member] | ||
Class of Stock [Line Items] | ||
Shares issued (in shares) | 600,000 | 600,000 |
Shares outstanding (in shares) | 600,000 | 600,000 |
Liquidation preference (USD per share) | $ 1,000 | |
Carrying Value | $ 585 | $ 585 |
Dividend Rate in Effect | 6.00% | |
Series D Preferred Stock [Member] | ||
Class of Stock [Line Items] | ||
Shares issued (in shares) | 750,000 | 750,000 |
Shares outstanding (in shares) | 750,000 | 750,000 |
Liquidation preference (USD per share) | $ 1,000 | |
Carrying Value | $ 728 | $ 728 |
Dividend Rate in Effect | 5.95% | |
Series A Preferred Stock [Member] | ||
Class of Stock [Line Items] | ||
Shares issued (in shares) | 400,000 | 400,000 |
Shares outstanding (in shares) | 400,000 | 400,000 |
Liquidation preference (USD per share) | $ 1,000 | |
Carrying Value | $ 397 | $ 397 |
Dividend Rate in Effect | 7.00% | |
Series A Preferred Stock [Member] | LIBOR [Member] | ||
Class of Stock [Line Items] | ||
Floating Annual Rate | 4.82% | |
Series E Preferred Stock [Member] | ||
Class of Stock [Line Items] | ||
Shares issued (in shares) | 6,000 | 6,000 |
Shares outstanding (in shares) | 6,000 | 6,000 |
Liquidation preference (USD per share) | $ 100,000 | |
Carrying Value | $ 591 | $ 591 |
Dividend Rate in Effect | 4.625% | |
Series E Preferred Stock [Member] | LIBOR [Member] | ||
Class of Stock [Line Items] | ||
Floating Annual Rate | 3.315% | |
Series F Preferred Stock [Member] | ||
Class of Stock [Line Items] | ||
Shares issued (in shares) | 5,000 | 0 |
Shares outstanding (in shares) | 5,000 | 0 |
Liquidation preference (USD per share) | $ 100,000 | |
Carrying Value | $ 492 | $ 0 |
Dividend Rate in Effect | 5.00% | |
Series F Preferred Stock [Member] | LIBOR [Member] | ||
Class of Stock [Line Items] | ||
Floating Annual Rate | 2.575% |
Accumulated Other Comprehensive Income (Components of Other Comprehensive Income (Loss)) (Details) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2017 |
Dec. 31, 2016 |
Dec. 31, 2015 |
|
Other comprehensive income (loss) before tax | |||
Net unrealized gain (loss) | $ 13 | $ (44) | $ (477) |
Reclassification of net unrealized loss transferred to held to maturity | 227 | 0 | 0 |
Other reclassifications included in other revenue | (12) | (4) | 0 |
Change in net unrealized gain (loss) on held to maturity securities: | |||
Reclassification of net unrealized loss transferred from available for sale | (227) | 0 | 0 |
Amortization of amounts previously recorded upon transfer from available for sale | 31 | 0 | 0 |
Other | (11) | 1 | 0 |
Other comprehensive income (loss), before tax | 21 | (47) | (477) |
Tax effect | |||
Net unrealized gain (loss) | (7) | 16 | 178 |
Reclassification of net unrealized loss on securities transferred to held to maturity | (85) | 0 | 0 |
Other reclassifications included in other revenue | 4 | 2 | 0 |
Change in net unrealized gain (loss) on held to maturity securities: | |||
Reclassification of net unrealized loss on securities transferred from available for sale (1) | 85 | 0 | 0 |
Amortization of amounts previously recorded upon transfer from available for sale | (11) | 0 | 0 |
Other | 4 | 0 | 0 |
Other comprehensive income (loss) | (10) | 18 | 178 |
Net of tax | |||
Net unrealized gain (loss) | 6 | (28) | (299) |
Reclassification of net unrealized loss on securities transferred to held to maturity | 142 | 0 | 0 |
Other reclassifications included in other revenue | (8) | (2) | 0 |
Change in net unrealized gain (loss) on held to maturity securities: | |||
Reclassification of net unrealized loss on securities transferred from available for sale | (142) | 0 | 0 |
Amortization of amounts previously recorded upon transfer from available for sale | 20 | 0 | 0 |
Other | (7) | 1 | 0 |
Other comprehensive income (loss), net of tax | $ 11 | $ (29) | $ (299) |
Accumulated Other Comprehensive Income (Accumulated Other Comprehensive Income Balances) (Details) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2017 |
Dec. 31, 2016 |
Dec. 31, 2015 |
|
Accumulated Other Comprehensive Income | |||
Beginning Balance | $ (163) | $ (134) | $ 165 |
Other net changes | 11 | (29) | (299) |
Ending Balance | (152) | (163) | (134) |
Net unrealized gain (loss) on available for sale securities [Member] | |||
Accumulated Other Comprehensive Income | |||
Other net changes | 6 | (30) | $ (299) |
Other [Member] | |||
Accumulated Other Comprehensive Income | |||
Other net changes | (7) | $ 1 | |
Reclassification of Securities Transferred to Held to Maturity [Member] | |||
Accumulated Other Comprehensive Income | |||
Other net changes | 142 | ||
Other Reclassifications in Other Revenue Available for Sale Securities [Member] | |||
Accumulated Other Comprehensive Income | |||
Other net changes | (8) | ||
Reclassification of Securities Transferred from Available for Sale [Member] | |||
Accumulated Other Comprehensive Income | |||
Other net changes | (142) | ||
Amortization of amounts previously recorded upon transfer to held to maturity from available for sale [Member] | |||
Accumulated Other Comprehensive Income | |||
Other net changes | $ 20 |
Employee Incentive, Retirement, Deferred Compensation, and Career Achievement Plans (Stock-Based Compensation Expense and Related Income Tax Benefit) (Details) - USD ($) $ in Millions |
12 Months Ended | ||||
---|---|---|---|---|---|
Dec. 31, 2017 |
Dec. 31, 2016 |
Dec. 31, 2015 |
|||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Total share-based compensation expense | $ 153 | $ 141 | $ 135 | ||
Income tax benefit on share-based compensation expense | (57) | (53) | (51) | ||
Income tax benefit | [1] | (1,296) | (1,104) | (832) | |
Accounting Standards Update 2016-09 [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Income tax benefit | 87 | ||||
Stock option [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Total share-based compensation expense | 50 | 45 | 46 | ||
Restricted stock unit [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Total share-based compensation expense | 94 | 89 | 83 | ||
Employee stock purchase plan [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Total share-based compensation expense | $ 9 | $ 7 | $ 6 | ||
|
Employee Incentive, Retirement, Deferred Compensation, and Career Achievement Plans (Employee Incentive Narrative) (Details) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2017 |
Dec. 31, 2016 |
Dec. 31, 2015 |
|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares of common stock authorized to be granted under the existing stock incentive plan (in shares) | 44,000,000 | ||
Total unrecognized compensation cost, net of forfeitures, related to outstanding stock options, restricted stock awards, and restricted stock units | $ 268 | ||
Stock option [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Remaining weighted-average period for unrecognized compensation cost, net of forfeitures, related to outstanding stock options, restricted stock awards, and restricted stock units | 1 year 10 months 24 days | ||
Restricted stock unit [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Remaining weighted-average period for unrecognized compensation cost, net of forfeitures, related to outstanding stock options, restricted stock awards, and restricted stock units | 2 years 4 months 24 days | ||
Total fair value of restricted stock awards vested | $ 127 | $ 105 | $ 126 |
Performance Shares [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Remaining weighted-average period for unrecognized compensation cost, net of forfeitures, related to outstanding stock options, restricted stock awards, and restricted stock units | 3 months 18 days | ||
Employee stock purchase plan [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares reserved for future issuance under the ESPP (in shares) | 37,000,000 | ||
Minimum [Member] | Restricted stock unit [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting period | 3 years | ||
Minimum [Member] | Stock option plan [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting period | 1 year | ||
Maximum [Member] | Restricted stock unit [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting period | 5 years | ||
Maximum [Member] | Stock option plan [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Period from the date of grant in which stock options expire | 10 years | ||
Award vesting period | 4 years |
Employee Incentive, Retirement, Deferred Compensation, and Career Achievement Plans (Stock Option Activity) (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions |
12 Months Ended | |
---|---|---|
Dec. 31, 2017 |
Dec. 31, 2016 |
|
Number of Options | ||
Beginning balance (in shares) | 37 | |
Granted (in shares) | 4 | |
Exercised (in shares) | (9) | |
Forfeited (in shares) | 0 | |
Expired (in shares) | 0 | |
Ending balance (in shares) | 32 | 37 |
Vested and expected to vest (in shares) | 31 | |
Vested and exercisable (in shares) | 20 | |
Weighted- Average Exercise Price per Share | ||
Beginning balance (USD per share) | $ 22.12 | |
Granted (USD per share) | 43.71 | |
Exercised (USD per share) | 18.20 | |
Forfeited (USD per share) | 31.02 | |
Expired (USD per share) | 24.82 | |
Ending balance (USD per share) | 26.16 | $ 22.12 |
Vested and expected to vest (USD per share) | 26.02 | |
Vested and exercisable (USD per share) | $ 20.82 | |
Weighted-Average Remaining Contractual Life | ||
Outstanding | 6 years 4 months 17 days | 6 years 6 months |
Vested and expected to vest | 6 years 4 months 6 days | |
Vested and exercisable | 5 years 7 days | |
Aggregate Intrinsic Value | ||
Outstanding | $ 814 | $ 649 |
Vested and expected to vest | 811 | |
Vested and exercisable | $ 612 |
Employee Incentive, Retirement, Deferred Compensation, and Career Achievement Plans (Information on Stock Options Granted and Exercised) (Details) - USD ($) $ / shares in Units, $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2017 |
Dec. 31, 2016 |
Dec. 31, 2015 |
|
Retirement Benefits [Abstract] | |||
Weighted-average fair value of options granted per share (USD per share) | $ 13.04 | $ 8.73 | $ 8.56 |
Cash received from options exercised | $ 171 | $ 144 | $ 90 |
Tax benefit realized on options exercised | 70 | 38 | 22 |
Aggregate intrinsic value of options exercised | $ 241 | $ 149 | $ 90 |
Employee Incentive, Retirement, Deferred Compensation, and Career Achievement Plans (Assumptions Used to Value Options Granted and Their Expected Lives) (Details) |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2017 |
Dec. 31, 2016 |
Dec. 31, 2015 |
|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Weighted-average expected dividend yield | 1.06% | 1.22% | 1.22% |
Weighted-average expected volatility | 34.00% | 30.00% | 28.00% |
Weighted-average risk-free interest rate | 2.10% | 1.80% | 2.20% |
Minimum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected life | 4 years 1 month 6 days | 4 years 8 months 12 days | 4 years 8 months 12 days |
Maximum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected life | 5 years 3 months 18 days | 7 years 3 months 18 days | 7 years 6 months |
Employee Incentive, Retirement, Deferred Compensation, and Career Achievement Plans (Restricted Stock Units Activity) (Details) - Restricted stock unit [Member] shares in Millions |
12 Months Ended |
---|---|
Dec. 31, 2017
$ / shares
shares
| |
Number of Units | |
Outstanding Beginning Balance (in shares) | shares | 8 |
Granted (in shares) | shares | 2 |
Vested (in shares) | shares | (3) |
Forfeited (in shares) | shares | 0 |
Outstanding Ending Balance (in shares) | shares | 7 |
Weighted- Average Grant Date Fair Value per Unit | |
Outstanding Beginning Balance (USD per share) | $ / shares | $ 29.41 |
Granted (USD per share) | $ / shares | 44.23 |
Vested (USD per share) | $ / shares | 28.15 |
Forfeited (USD per share) | $ / shares | 30.86 |
Outstanding Ending Balance (USD per share) | $ / shares | $ 35.16 |
Employee Incentive, Retirement, Deferred Compensation, and Career Achievement Plans (Retirement and Deferred Compensation Plans Narrative) (Details) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2017 |
Dec. 31, 2016 |
Dec. 31, 2015 |
|
Retirement Benefits [Abstract] | |||
Company's total contribution expense | $ 92 | $ 83 | $ 78 |
Deferred compensation liability | $ 160 | $ 135 |
Employee Incentive, Retirement, Deferred Compensation, and Career Achievement Plans (Schedule of Changes in Projected Benefit Obligations) (Details) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2017 |
Dec. 31, 2016 |
Dec. 31, 2015 |
|
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||
Projected benefit obligation at beginning of year | $ 26 | $ 17 | |
Benefit cost | 9 | 7 | $ 8 |
Actuarial (gain)/loss | 9 | 2 | |
Projected benefit obligation at the end of year | $ 44 | $ 26 | $ 17 |
Employee Incentive, Retirement, Deferred Compensation, and Career Achievement Plans (Schedule of Net Benefit Costs) (Details) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2017 |
Dec. 31, 2016 |
Dec. 31, 2015 |
|
Retirement Benefits [Abstract] | |||
Service cost | $ 8 | $ 6 | $ 8 |
Interest cost | 1 | 1 | 0 |
Net benefit cost | $ 9 | $ 7 | $ 8 |
Employee Incentive, Retirement, Deferred Compensation, and Career Achievement Plans (Schedule of Assumptions Used) (Details) |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2017 |
Dec. 31, 2016 |
Dec. 31, 2015 |
|
Retirement Benefits [Abstract] | |||
Discount rate | 3.71% | 4.62% | 4.19% |
Rate of compensation increase | 3.00% | 3.00% | 3.00% |
Investment crediting rate for notional account balances | 6.50% | 6.50% | 6.50% |
Employee Incentive, Retirement, Deferred Compensation, and Career Achievement Plans (Schedule of Components and Amounts Impacting AOCI) (Details) - USD ($) $ in Millions |
12 Months Ended | |||
---|---|---|---|---|
Dec. 31, 2017 |
Dec. 31, 2016 |
Dec. 31, 2017 |
Dec. 31, 2016 |
|
Accumulated Other Comprehensive Income | ||||
Beginning balance | $ 1 | $ 0 | ||
Actuarial gain/(loss) | (11) | 1 | ||
Ending balance | (10) | 1 | ||
Net gain/(loss) | $ (10) | $ 1 | ||
Amount recognized in AOCI | $ 1 | $ 0 | (10) | 1 |
Tax effect | 4 | 0 | ||
Net amount recognized in AOCI | $ (6) | $ 1 |
Taxes on Income (Narrative) (Details) - USD ($) $ in Millions |
3 Months Ended | 12 Months Ended | ||
---|---|---|---|---|
Dec. 31, 2017 |
Dec. 31, 2017 |
Dec. 31, 2016 |
Dec. 31, 2015 |
|
Income Tax Disclosure [Abstract] | ||||
Remeasurement of net deferred tax assets | $ 46 | $ 46 | ||
Unrecognized tax benefits | 111 | 111 | $ 93 | $ 48 |
Unrecognized tax benefits that, if recognized, would affect the annual effective tax rate | 104 | 104 | 85 | |
Unrecognized tax benefits, interest and penalties accrued | $ 5 | $ 5 | $ 8 |
Taxes on Income (Income Tax Expense) (Details) - USD ($) $ in Millions |
12 Months Ended | ||||
---|---|---|---|---|---|
Dec. 31, 2017 |
Dec. 31, 2016 |
Dec. 31, 2015 |
|||
Current: | |||||
Federal | $ 1,132 | $ 980 | $ 740 | ||
State | 106 | 109 | 99 | ||
Total current | 1,238 | 1,089 | 839 | ||
Deferred: | |||||
Federal | 58 | 13 | (6) | ||
State | 0 | 2 | (1) | ||
Total deferred | 58 | 15 | (7) | ||
Taxes on income | [1] | $ 1,296 | $ 1,104 | $ 832 | |
|
Taxes on Income (Temporary Differences That Created Deferred Tax Assets and Liabilities) (Details) - USD ($) $ in Millions |
Dec. 31, 2017 |
Dec. 31, 2016 |
---|---|---|
Deferred tax assets: | ||
Employee compensation, severance, and benefits | $ 133 | $ 216 |
Net unrealized loss on available for sale securities | 57 | 97 |
Reserves and allowances | 15 | 25 |
Facilities lease commitments | 14 | 25 |
State and local taxes | 12 | 17 |
Net operating loss carryforwards | 5 | 5 |
Other | 3 | 0 |
Total deferred tax assets | 239 | 385 |
Valuation allowance | (2) | (3) |
Deferred tax assets — net of valuation allowance | 237 | 382 |
Deferred tax liabilities: | ||
Capitalized internal-use software development costs | (89) | (118) |
Depreciation and amortization | (72) | (114) |
Other | 0 | (7) |
Total deferred tax liabilities | (161) | (239) |
Deferred tax asset – net | $ 76 | $ 143 |
Taxes on Income (Reconciliation of Federal Statutory Income Tax Rate to Effective Income Tax Rate) (Details) |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2017 |
Dec. 31, 2016 |
Dec. 31, 2015 |
|
Income Tax Disclosure [Abstract] | |||
Federal statutory income tax rate | 35.00% | 35.00% | 35.00% |
State income taxes, net of federal tax benefit | 2.20% | 2.40% | 2.60% |
Equity compensation benefit | (2.40%) | 0.00% | 0.00% |
Other | 0.70% | (0.50%) | (1.10%) |
Effective income tax rate | 35.50% | 36.90% | 36.50% |
Taxes on Income (Reconciliation of Beginning and Ending Amount of Unrecognized Tax Benefits) (Details) - USD ($) $ in Millions |
12 Months Ended | |
---|---|---|
Dec. 31, 2017 |
Dec. 31, 2016 |
|
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | ||
Balance at beginning of year | $ 93 | $ 48 |
Additions for tax positions related to the current year | 22 | 16 |
Additions for tax positions related to prior years | 15 | 32 |
Reductions for tax positions related to prior years | (2) | (2) |
Reductions due to lapse of statute of limitations | 0 | 0 |
Reductions for settlements with tax authorities | (17) | (1) |
Balance at end of year | $ 111 | $ 93 |
Earnings Per Common Share (EPS under Basic and Diluted Computations) (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions |
3 Months Ended | 12 Months Ended | ||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2017 |
Sep. 30, 2017 |
Jun. 30, 2017 |
Mar. 31, 2017 |
Dec. 31, 2016 |
Sep. 30, 2016 |
Jun. 30, 2016 |
Mar. 31, 2016 |
Dec. 31, 2017 |
Dec. 31, 2016 |
Dec. 31, 2015 |
||||||||
Earnings Per Share [Abstract] | ||||||||||||||||||
Net income | $ 597 | $ 618 | $ 575 | $ 564 | $ 522 | $ 503 | $ 452 | $ 412 | $ 2,354 | $ 1,889 | $ 1,447 | |||||||
Preferred stock dividends and other | [1] | (174) | (143) | (83) | ||||||||||||||
Net Income Available to Common Stockholders | $ 550 | $ 575 | $ 530 | $ 525 | $ 478 | $ 470 | $ 406 | $ 392 | $ 2,180 | $ 1,746 | $ 1,364 | |||||||
Weighted Average Common Shares Outstanding - Basic (in shares) | 1,343 | 1,339 | 1,338 | 1,336 | 1,329 | 1,324 | 1,322 | 1,321 | 1,339 | 1,324 | 1,315 | |||||||
Common stock equivalent shares related to stock incentive plans (in shares) | 14 | 10 | 12 | |||||||||||||||
Weighted-average common shares outstanding — diluted (in shares) | 1,358 | 1,353 | 1,351 | 1,351 | 1,341 | 1,334 | 1,333 | 1,330 | 1,353 | [2] | 1,334 | [2] | 1,327 | [2] | ||||
Basic EPS (USD per share) | $ 0.41 | $ 0.43 | $ 0.40 | $ 0.39 | $ 0.36 | $ 0.36 | $ 0.31 | $ 0.30 | $ 1.63 | $ 1.32 | $ 1.04 | |||||||
Diluted EPS (USD per share) | $ 0.41 | $ 0.42 | $ 0.39 | $ 0.39 | $ 0.36 | $ 0.35 | $ 0.30 | $ 0.29 | $ 1.61 | $ 1.31 | $ 1.03 | |||||||
Antidilutive stock options and restricted stock units excluded from the calculation of diluted EPS (n shares) | 15 | 26 | 23 | |||||||||||||||
|
Regulatory Requirements (Regulatory Capital and Ratios) (Details) - USD ($) $ in Millions |
Dec. 31, 2017 |
Dec. 31, 2016 |
---|---|---|
CSC [Member] | ||
Common Equity Tier 1 Risk-Based Capital | ||
Actual Amount | $ 14,630 | $ 12,574 |
Actual Ratio | 19.30% | 18.40% |
Minimum Capital Requirement | $ 3,414 | $ 3,068 |
Minimum Capital Requirement Ratio | 4.50% | 4.50% |
Tier 1 Risk-Based Capital | ||
Actual Amount | $ 17,423 | $ 15,357 |
Actual Ratio | 23.00% | 22.50% |
Minimum Capital Requirement Amount | $ 4,552 | $ 4,091 |
Minimum Capital Requirement Ratio | 6.00% | 6.00% |
Total Risk-Based Capital | ||
Actual Amount | $ 17,452 | $ 15,384 |
Actual Ratio | 23.00% | 22.60% |
Minimum Capital Requirement Amount | $ 6,069 | $ 5,454 |
Minimum Capital Requirement Ratio | 8.00% | 8.00% |
Tier 1 Leverage | ||
Actual Amount | $ 17,423 | $ 15,357 |
Actual Ratio | 7.60% | 7.20% |
Minimum Capital Requirement Amount | $ 9,218 | $ 8,516 |
Minimum Capital Requirement Ratio | 4.00% | 4.00% |
Schwab Bank [Member] | ||
Common Equity Tier 1 Risk-Based Capital | ||
Actual Amount | $ 13,355 | $ 11,878 |
Actual Ratio | 20.10% | 19.80% |
Minimum to be Well Capitalized | $ 4,324 | $ 3,894 |
Minimum to be Well Capitalized Ratio | 6.50% | 6.50% |
Minimum Capital Requirement | $ 2,993 | $ 2,696 |
Minimum Capital Requirement Ratio | 4.50% | 4.50% |
Tier 1 Risk-Based Capital | ||
Actual Amount | $ 13,355 | $ 11,878 |
Actual Ratio | 20.10% | 19.80% |
Minimum to be Well Capitalized Amount | $ 5,321 | $ 4,793 |
Minimum to be Well Capitalized Ratio | 8.00% | 8.00% |
Minimum Capital Requirement Amount | $ 3,991 | $ 3,595 |
Minimum Capital Requirement Ratio | 6.00% | 6.00% |
Total Risk-Based Capital | ||
Actual Amount | $ 13,382 | $ 11,904 |
Actual Ratio | 20.10% | 19.90% |
Minimum to be Well Capitalized Amount | $ 6,652 | $ 5,992 |
Minimum to be Well Capitalized Ratio | 10.00% | 10.00% |
Minimum Capital Requirement Amount | $ 5,321 | $ 4,793 |
Minimum Capital Requirement Ratio | 8.00% | 8.00% |
Tier 1 Leverage | ||
Actual Amount | $ 13,355 | $ 11,878 |
Actual Ratio | 7.10% | 7.00% |
Minimum to be Well Capitalized Amount | $ 9,462 | $ 8,456 |
Minimum to be Well Capitalized Ratio | 5.00% | 5.00% |
Minimum Capital Requirement Amount | $ 7,569 | $ 6,765 |
Minimum Capital Requirement Ratio | 4.00% | 4.00% |
Regulatory Requirements (Narrative) (Details) - USD ($) $ in Thousands |
Jan. 03, 2018 |
Dec. 31, 2017 |
Jan. 04, 2017 |
Dec. 31, 2016 |
Jan. 01, 2016 |
---|---|---|---|---|---|
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | |||||
Schwab Bank's average reserve requirement | $ 1,600,000 | $ 1,500,000 | |||
Required capital conservation buffer of risk-weighted assets | 0.625% | ||||
Capital convservation buffer of risk-weighted assets annual increase | 0.625% | ||||
Capital conservation buffer of risk-weighted assets when fully implemented | 2.50% | ||||
Percentage of aggregate debit balances required as minimum net capital | 2.00% | ||||
Minimum capital requirement | $ 250 | 250 | |||
Percentage of net capital to aggregate debit balances required for a broker-dealer to repay subordinated borrowings, pay cash dividends, or make any unsecured advances or loans to its parent company or employees | 5.00% | ||||
Percentage of net capital to the Company's minimum dollar requirement required for a broker-dealer to repay subordinated borrowings, pay cash dividends, or make any unsecured advances or loans to its parent company or employees | 120.00% | ||||
Cash and investments required to be segregated and on deposit for regulatory purposes | $ 15,300,000 | $ 22,500,000 | |||
Reserve Deposit [Member] | |||||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | |||||
Net amount of segregated cash deposited into segregated reserve bank accounts | $ 1,600,000 | ||||
Reserve Deposit [Member] | Subsequent Event [Member] | |||||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | |||||
Net amount of segregated cash deposited into segregated reserve bank accounts | $ 704,000 | ||||
CS&Co [Member] | |||||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | |||||
Minimum capital requirement | $ 250 |
Regulatory Requirements (Net Capital and Net Capital Requirements for CS&Co) (Details) - USD ($) $ in Thousands |
Dec. 31, 2017 |
Dec. 31, 2016 |
---|---|---|
Banking and Thrift [Abstract] | ||
Net capital | $ 2,118,000 | $ 1,846,000 |
Minimum net capital required | 250 | 250 |
2% of Aggregate Debit Balances | 435,000 | 355,000 |
Net capital in excess of required net capital | $ 1,683,000 | $ 1,491,000 |
Segment Information (Narrative) (Details) |
12 Months Ended |
---|---|
Dec. 31, 2017
segment
| |
Segment Reporting [Abstract] | |
Number of reportable segments | 2 |
Segment Information (Financial Information for Reportable Segments) (Details) - USD ($) $ in Millions |
3 Months Ended | 12 Months Ended | |||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2017 |
Sep. 30, 2017 |
Jun. 30, 2017 |
Mar. 31, 2017 |
Dec. 31, 2016 |
Sep. 30, 2016 |
Jun. 30, 2016 |
Mar. 31, 2016 |
Dec. 31, 2017 |
Dec. 31, 2016 |
Dec. 31, 2015 |
|||
Net Revenues: | |||||||||||||
Net interest revenue | $ 4,282 | $ 3,322 | $ 2,525 | ||||||||||
Asset management and administration fees | [1] | 3,392 | 3,055 | 2,650 | |||||||||
Trading revenue | 654 | 825 | 866 | ||||||||||
Other | 290 | 271 | 328 | ||||||||||
Provision for loan losses | 0 | 5 | 11 | ||||||||||
Total net revenues | $ 2,242 | $ 2,165 | $ 2,130 | $ 2,081 | $ 1,972 | $ 1,914 | $ 1,828 | $ 1,764 | 8,618 | 7,478 | 6,380 | ||
Total Expenses Excluding Interest | $ 1,289 | $ 1,220 | $ 1,221 | $ 1,238 | $ 1,148 | $ 1,120 | $ 1,108 | $ 1,109 | 4,968 | 4,485 | 4,101 | ||
Income before taxes on income | 3,650 | 2,993 | 2,279 | ||||||||||
Capital expenditures | 412 | 353 | 285 | ||||||||||
Depreciation and amortization | 269 | 234 | 224 | ||||||||||
Investor Services [Member] | |||||||||||||
Net Revenues: | |||||||||||||
Net interest revenue | 3,231 | 2,591 | 2,133 | ||||||||||
Asset management and administration fees | 2,344 | 2,093 | 1,837 | ||||||||||
Trading revenue | 408 | 524 | 556 | ||||||||||
Other | 217 | 199 | 234 | ||||||||||
Provision for loan losses | 0 | 4 | 11 | ||||||||||
Total net revenues | 6,200 | 5,411 | 4,771 | ||||||||||
Total Expenses Excluding Interest | 3,725 | 3,380 | 3,090 | ||||||||||
Income before taxes on income | 2,475 | 2,031 | 1,681 | ||||||||||
Capital expenditures | 265 | 234 | 195 | ||||||||||
Depreciation and amortization | 203 | 180 | 171 | ||||||||||
Advisor Services [Member] | |||||||||||||
Net Revenues: | |||||||||||||
Net interest revenue | 1,051 | 731 | 392 | ||||||||||
Asset management and administration fees | 1,048 | 962 | 813 | ||||||||||
Trading revenue | 246 | 301 | 310 | ||||||||||
Other | 73 | 72 | 94 | ||||||||||
Provision for loan losses | 0 | 1 | 0 | ||||||||||
Total net revenues | 2,418 | 2,067 | 1,609 | ||||||||||
Total Expenses Excluding Interest | 1,243 | 1,105 | 1,011 | ||||||||||
Income before taxes on income | 1,175 | 962 | 598 | ||||||||||
Capital expenditures | 147 | 119 | 90 | ||||||||||
Depreciation and amortization | $ 66 | $ 54 | $ 53 | ||||||||||
|
The Charles Schwab Corporation – Parent Company Only Financial Statements (Condensed Statements of Income) (Details) - USD ($) $ in Millions |
3 Months Ended | 12 Months Ended | ||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2017 |
Sep. 30, 2017 |
Jun. 30, 2017 |
Mar. 31, 2017 |
Dec. 31, 2016 |
Sep. 30, 2016 |
Jun. 30, 2016 |
Mar. 31, 2016 |
Dec. 31, 2017 |
Dec. 31, 2016 |
Dec. 31, 2015 |
||||||
Condensed Income Statements, Captions [Line Items] | ||||||||||||||||
Interest revenue | $ 4,624 | $ 3,493 | $ 2,657 | |||||||||||||
Interest expense | (342) | (171) | (132) | |||||||||||||
Net interest revenue | 4,282 | 3,322 | 2,525 | |||||||||||||
Other | 290 | 271 | 328 | |||||||||||||
Expenses excluding interest | $ (1,289) | $ (1,220) | $ (1,221) | $ (1,238) | $ (1,148) | $ (1,120) | $ (1,108) | $ (1,109) | (4,968) | (4,485) | (4,101) | |||||
Income tax benefit | [1] | (1,296) | (1,104) | (832) | ||||||||||||
Equity in net income of subsidiaries: | ||||||||||||||||
Net Income | 597 | 618 | 575 | 564 | 522 | 503 | 452 | 412 | 2,354 | 1,889 | 1,447 | |||||
Preferred stock dividends and other | [2] | 174 | 143 | 83 | ||||||||||||
Net Income Available to Common Stockholders | $ 550 | $ 575 | $ 530 | $ 525 | $ 478 | $ 470 | $ 406 | $ 392 | 2,180 | 1,746 | 1,364 | |||||
Parent Company [Member] | ||||||||||||||||
Condensed Income Statements, Captions [Line Items] | ||||||||||||||||
Interest revenue | 33 | 22 | 12 | |||||||||||||
Interest expense | (114) | (100) | (86) | |||||||||||||
Net interest revenue | (81) | (78) | (74) | |||||||||||||
Other | 3 | 1 | 4 | |||||||||||||
Expenses excluding interest | (32) | (21) | (27) | |||||||||||||
Loss before income tax benefit and equity in net income of subsidiaries | (110) | (98) | (97) | |||||||||||||
Income tax benefit | 27 | 34 | 41 | |||||||||||||
Loss before equity in net income of subsidiaries | (83) | (64) | (56) | |||||||||||||
Equity in net income of subsidiaries: | ||||||||||||||||
Equity in undistributed net income of subsidiaries | 1,479 | 1,690 | 1,287 | |||||||||||||
Dividends from bank subsidiary | 625 | 0 | 0 | |||||||||||||
Dividends from non-bank subsidiaries | 333 | 263 | 216 | |||||||||||||
Net Income | 2,354 | 1,889 | 1,447 | |||||||||||||
Preferred stock dividends and other | 174 | 143 | 83 | |||||||||||||
Net Income Available to Common Stockholders | $ 2,180 | $ 1,746 | $ 1,364 | |||||||||||||
|
The Charles Schwab Corporation – Parent Company Only Financial Statements (Condensed Balance Sheets) (Details) - USD ($) $ in Millions |
Dec. 31, 2017 |
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
---|---|---|---|---|
Assets | ||||
Cash and cash equivalents | $ 14,217 | $ 10,828 | $ 11,978 | $ 11,363 |
Held to maturity securities | 120,926 | 75,203 | ||
Other securities owned — at fair value | 539 | 449 | ||
Other assets | 1,949 | 1,408 | ||
Total assets | 243,274 | 223,383 | ||
Liabilities and Stockholders’ Equity | ||||
Accrued expenses and other liabilities | 2,810 | 2,331 | ||
Long-term debt | 4,753 | 2,876 | ||
Total liabilities | 224,749 | 206,962 | ||
Stockholders’ equity | 18,525 | 16,421 | 13,402 | 11,803 |
Total liabilities and stockholders’ equity | 243,274 | 223,383 | ||
Parent Company [Member] | ||||
Assets | ||||
Cash and cash equivalents | 2,825 | 1,189 | $ 1,007 | $ 1,043 |
Receivables from subsidiaries | 571 | 503 | ||
Available for sale securities | 573 | 569 | ||
Held to maturity securities | 223 | 223 | ||
Other securities owned — at fair value | 76 | 75 | ||
Loans to non-bank subsidiaries | 448 | 0 | ||
Investment in non-bank subsidiaries | 5,393 | 5,044 | ||
Investment in bank subsidiary | 13,224 | 11,726 | ||
Other assets | 160 | 124 | ||
Total assets | 23,493 | 19,453 | ||
Liabilities and Stockholders’ Equity | ||||
Accrued expenses and other liabilities | 276 | 219 | ||
Payables to subsidiaries | 0 | 6 | ||
Long-term debt | 4,692 | 2,807 | ||
Total liabilities | 4,968 | 3,032 | ||
Stockholders’ equity | 18,525 | 16,421 | ||
Total liabilities and stockholders’ equity | $ 23,493 | $ 19,453 |
The Charles Schwab Corporation – Parent Company Only Financial Statements (Condensed Statements of Cash Flows) (Details) - USD ($) $ in Millions |
3 Months Ended | 12 Months Ended | |||||||||
---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2017 |
Sep. 30, 2017 |
Jun. 30, 2017 |
Mar. 31, 2017 |
Dec. 31, 2016 |
Sep. 30, 2016 |
Jun. 30, 2016 |
Mar. 31, 2016 |
Dec. 31, 2017 |
Dec. 31, 2016 |
Dec. 31, 2015 |
|
Cash Flows from Operating Activities | |||||||||||
Net income | $ 597 | $ 618 | $ 575 | $ 564 | $ 522 | $ 503 | $ 452 | $ 412 | $ 2,354 | $ 1,889 | $ 1,447 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||
Other | 51 | 9 | (4) | ||||||||
Net change in: | |||||||||||
Other securities owned | (90) | 84 | (17) | ||||||||
Other assets | (177) | (93) | (98) | ||||||||
Accrued expenses and other liabilities | 421 | 167 | 304 | ||||||||
Net cash provided by operating activities | 1,263 | 2,662 | 1,246 | ||||||||
Cash Flows from Investing Activities | |||||||||||
Purchases of available for sale securities | (15,033) | (29,248) | (21,351) | ||||||||
Proceeds from sales of available for sale securities | 8,617 | 5,537 | 2,424 | ||||||||
Principal payments on available for sale securities | 9,095 | 11,903 | 7,340 | ||||||||
Purchases of held to maturity securities | (32,925) | (31,162) | (19,303) | ||||||||
Other investing activities | (59) | (39) | (35) | ||||||||
Net cash used for investing activities | (20,473) | (38,775) | (28,623) | ||||||||
Cash Flows from Financing Activities | |||||||||||
Issuance of long-term debt | 2,129 | 0 | 1,346 | ||||||||
Repayment of long-term debt | (257) | (7) | (357) | ||||||||
Net proceeds from preferred stock offerings | 492 | 1,316 | 581 | ||||||||
Redemption of preferred stock | (485) | 0 | 0 | ||||||||
Dividends paid | (592) | (486) | (387) | ||||||||
Proceeds from stock options exercised and other | 171 | 144 | 90 | ||||||||
Other financing activities | (45) | 44 | 32 | ||||||||
Net cash provided by financing activities | 22,599 | 34,963 | 27,992 | ||||||||
Increase (Decrease) in Cash and Cash Equivalents | 3,389 | (1,150) | 615 | ||||||||
Cash and Cash Equivalents at Beginning of Year | 10,828 | 11,978 | 10,828 | 11,978 | 11,363 | ||||||
Cash and Cash Equivalents at End of Year | 14,217 | 10,828 | 14,217 | 10,828 | 11,978 | ||||||
Parent Company [Member] | |||||||||||
Cash Flows from Operating Activities | |||||||||||
Net income | 2,354 | 1,889 | 1,447 | ||||||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||
Equity in undistributed earnings of subsidiaries | (1,479) | (1,690) | (1,287) | ||||||||
Other | 5 | (37) | (31) | ||||||||
Net change in: | |||||||||||
Other securities owned | (1) | (10) | 9 | ||||||||
Other assets | (26) | (27) | (32) | ||||||||
Accrued expenses and other liabilities | 44 | 30 | 4 | ||||||||
Net cash provided by operating activities | 897 | 155 | 110 | ||||||||
Cash Flows from Investing Activities | |||||||||||
Due from (to) subsidiaries — net | (374) | 95 | 93 | ||||||||
Increase in investments in subsidiaries | (342) | (1,547) | (611) | ||||||||
Repayments (Advances) of subordinated loan to CS&Co | 0 | 465 | (150) | ||||||||
Purchases of available for sale securities | (201) | (2) | (842) | ||||||||
Proceeds from sales of available for sale securities | 197 | 2 | 200 | ||||||||
Principal payments on available for sale securities | 0 | 0 | 75 | ||||||||
Purchases of held to maturity securities | 0 | 0 | (223) | ||||||||
Other investing activities | (6) | (4) | 0 | ||||||||
Net cash used for investing activities | (726) | (991) | (1,458) | ||||||||
Cash Flows from Financing Activities | |||||||||||
Issuance of long-term debt | 2,129 | 0 | 1,346 | ||||||||
Repayment of long-term debt | (250) | 0 | (350) | ||||||||
Net proceeds from preferred stock offerings | 492 | 1,316 | 581 | ||||||||
Redemption of preferred stock | (485) | 0 | 0 | ||||||||
Dividends paid | (592) | (486) | (387) | ||||||||
Proceeds from stock options exercised and other | 171 | 144 | 90 | ||||||||
Other financing activities | 0 | 44 | 32 | ||||||||
Net cash provided by financing activities | 1,465 | 1,018 | 1,312 | ||||||||
Increase (Decrease) in Cash and Cash Equivalents | 1,636 | 182 | (36) | ||||||||
Cash and Cash Equivalents at Beginning of Year | $ 1,189 | $ 1,007 | 1,189 | 1,007 | 1,043 | ||||||
Cash and Cash Equivalents at End of Year | $ 2,825 | $ 1,189 | $ 2,825 | $ 1,189 | $ 1,007 |
Quarterly Financial Information (Unaudited) (Schedule of Quarterly Financial Information) (Details) $ / shares in Units, shares in Millions, $ in Millions |
3 Months Ended | 12 Months Ended | ||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2017
USD ($)
$ / shares
shares
|
Sep. 30, 2017
USD ($)
$ / shares
shares
|
Jun. 30, 2017
USD ($)
$ / shares
shares
|
Mar. 31, 2017
USD ($)
$ / shares
shares
|
Dec. 31, 2016
USD ($)
$ / shares
shares
|
Sep. 30, 2016
USD ($)
$ / shares
shares
|
Jun. 30, 2016
USD ($)
$ / shares
shares
|
Mar. 31, 2016
USD ($)
$ / shares
shares
|
Dec. 31, 2017
USD ($)
$ / shares
shares
|
Dec. 31, 2016
USD ($)
$ / shares
shares
|
Dec. 31, 2015
USD ($)
$ / shares
shares
|
||||||
Quarterly Financial Information Disclosure [Abstract] | ||||||||||||||||
Total Net Revenues | $ | $ 2,242 | $ 2,165 | $ 2,130 | $ 2,081 | $ 1,972 | $ 1,914 | $ 1,828 | $ 1,764 | $ 8,618 | $ 7,478 | $ 6,380 | |||||
Total Expenses Excluding Interest | $ | 1,289 | 1,220 | 1,221 | 1,238 | 1,148 | 1,120 | 1,108 | 1,109 | 4,968 | 4,485 | 4,101 | |||||
Net Income | $ | 597 | 618 | 575 | 564 | 522 | 503 | 452 | 412 | 2,354 | 1,889 | 1,447 | |||||
Net Income Available to Common Stockholders | $ | $ 550 | $ 575 | $ 530 | $ 525 | $ 478 | $ 470 | $ 406 | $ 392 | $ 2,180 | $ 1,746 | $ 1,364 | |||||
Weighted Average Common Shares Outstanding - Basic (in shares) | shares | 1,343 | 1,339 | 1,338 | 1,336 | 1,329 | 1,324 | 1,322 | 1,321 | 1,339 | 1,324 | 1,315 | |||||
Weighted Average Common Shares Outstanding - Diluted (in shares) | shares | 1,358 | 1,353 | 1,351 | 1,351 | 1,341 | 1,334 | 1,333 | 1,330 | 1,353 | [1] | 1,334 | [1] | 1,327 | [1] | ||
Basic (USD per share) | $ 0.41 | $ 0.43 | $ 0.40 | $ 0.39 | $ 0.36 | $ 0.36 | $ 0.31 | $ 0.30 | $ 1.63 | $ 1.32 | $ 1.04 | |||||
Diluted (USD per share) | 0.41 | 0.42 | 0.39 | 0.39 | 0.36 | 0.35 | 0.30 | 0.29 | 1.61 | 1.31 | 1.03 | |||||
Dividends Declared Per Common Share (USD per share) | 0.08 | 0.08 | 0.08 | 0.08 | 0.07 | 0.07 | 0.07 | 0.06 | $ 0.32 | $ 0.27 | $ 0.24 | |||||
Range of Common Stock Price Per Share: | ||||||||||||||||
High (USD per share) | 52.52 | 44.35 | 44.10 | 43.65 | 40.58 | 31.87 | 31.07 | 32.23 | ||||||||
Low (USD per share) | $ 42.20 | $ 38.06 | $ 37.16 | $ 37.62 | $ 30.66 | $ 23.83 | $ 24.02 | $ 21.51 | ||||||||
Range of Price/Earnings Ratio: | ||||||||||||||||
High | 33 | 28 | 30 | 31 | 31 | 26 | 27 | 29 | ||||||||
Low | 26 | 24 | 25 | 27 | 24 | 20 | 21 | 20 | ||||||||
|
Subsequent Event (Details) - Senior Notes Due March 2018 [Member] - Senior Notes [Member] - USD ($) |
Feb. 08, 2018 |
Dec. 31, 2017 |
---|---|---|
Subsequent Event [Line Items] | ||
Fixed interest rate | 1.50% | |
Subsequent Event [Member] | ||
Subsequent Event [Line Items] | ||
Fixed interest rate | 1.50% | |
Principal amount | $ 625,000,000 |
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