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: | | | | | | | | | | | | | | 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 |
|
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: | | | | | | | | | | | | | | | | | 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 |
|
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