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

12 Months Ended

Dec. 31, 2011

Condensed Statements of Income


Year Ended December 31,	2011			2010			2009
Interest revenue	$	4		$	3		$	8
Interest expense		(103	)		(86	)		(66	)


Net interest revenue		(99	)		(83	)		(58	)
Other revenues		8			6			33
Expenses excluding interest		(30	)		(18	)		(15	)

Loss before income tax benefit and equity in net income of subsidiaries		(121	)		(95	)		(40	)
Income tax benefit		43			36			16

Loss before equity in net income of subsidiaries		(78	)		(59	)		(24	)
Equity in net income of subsidiaries:
Equity in undistributed net income of subsidiaries		600			478			228
Dividends from bank subsidiary		150			—			—
Dividends from non-bank subsidiaries		192			35			583

Net Income	$	864		$	454		$	787

Condensed Balance Sheets


December 31,	2011		2010
Assets
Cash and cash equivalents	$	852	$	1,149
Receivables from subsidiaries		57		92
Other securities owned – at fair value		77		91
Loans to non-bank subsidiaries		363		265
Investment in non-bank subsidiaries		3,363		2,509
Investment in bank subsidiary		5,009		4,189
Equipment, office facilities, and property – net		4		5
Other assets		64		91

Total assets	$	9,789	$	8,391

Liabilities and Stockholders’ Equity
Accrued expenses and other liabilities	$	158	$	232
Payables to subsidiaries		16		33
Long-term debt		1,901		1,900

Total liabilities		2,075		2,165

Stockholders’ equity		7,714		6,226

Total liabilities and stockholders’ equity	$	9,789	$	8,391

Condensed Statements of Cash Flows


Year Ended December 31,	2011			2010			2009
Cash Flows from Operating Activities
Net income	$	864		$	454		$	787
Adjustments to reconcile net income to net cash provided by operating activities:
Equity in undistributed earnings of subsidiaries		(591	)		(478	)		(253	)
Provision for deferred income taxes		3			3			20
Other		1			(3	)		(35	)
Net change in:
Receivables from brokers, dealers, and clearing organizations		—			11			23
Other securities owned		6			422			(404	)
Other assets		26			40			(16	)
Accrued expenses and other liabilities		(76	)		(2	)		(1	)

Net cash provided by operating activities		233			447			121


Cash Flows from Investing Activities
Due from subsidiaries – net		24			63			279
Increase in investments in subsidiaries		(366	)		(1,025	)		(725	)
Cash payments for business combinations and investments, net of cash acquired		8			4			—

Net cash used for investing activities		(334	)		(958	)		(446	)


Cash Flows from Financing Activities
Issuance of long-term debt		—			701			747
Repayment of long-term debt		—			(200	)		(76	)
Net proceeds from common stock offering		—			543			—
Dividends paid		(295	)		(288	)		(279	)
Proceeds from stock options exercised and other		96			35			53
Other financing activities		3			(6	)		—

Net cash (used for) provided by financing activities		(196	)		785			445

(Decrease) Increase in Cash and Cash Equivalents		(297	)		274			120
Cash and Cash Equivalents at Beginning of Year		1,149			875			755

Cash and Cash Equivalents at End of Year	$	852		$	1,149		$	875