Document and Entity Information
Document and Entity Information - USD ($) $ in Billions | 12 Months Ended | ||
Sep. 30, 2017 | Nov. 02, 2017 | Mar. 31, 2017 | |
Document And Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Sep. 30, 2017 | ||
Document Fiscal Year Focus | 2,017 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | AMTD | ||
Entity Registrant Name | TD AMERITRADE HOLDING CORP | ||
Entity Central Index Key | 1,173,431 | ||
Current Fiscal Year End Date | --09-30 | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Common Stock, Shares Outstanding | 566,939,277 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Public Float | $ 22 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Sep. 30, 2017 | Sep. 30, 2016 |
ASSETS | ||
Cash and cash equivalents | $ 1,472 | $ 1,855 |
Cash and investments segregated and on deposit for regulatory purposes | 10,446 | 8,729 |
Receivable from brokers, dealers and clearing organizations | 1,334 | 1,190 |
Receivable from clients, net | 17,151 | 11,941 |
Receivable from affiliates | 137 | 106 |
Other receivables, net | 174 | 160 |
Securities owned, at fair value | 503 | 331 |
Investments available-for-sale, at fair value (including $99 million of securities pledged as collateral for repurchase agreements at September 30, 2017) | 746 | 757 |
Property and equipment at cost, net | 752 | 526 |
Goodwill | 4,213 | 2,467 |
Acquired intangible assets, net | 1,470 | 575 |
Other assets | 229 | 181 |
Total assets | 38,627 | 28,818 |
Liabilities: | ||
Payable to brokers, dealers and clearing organizations | 2,504 | 2,040 |
Payable to clients | 25,107 | 19,055 |
Accounts payable and other liabilities | 815 | 565 |
Payable to affiliates | 109 | 9 |
Securities sold under agreements to repurchase | 97 | 0 |
Long-term debt | 2,555 | 1,817 |
Deferred income taxes | 193 | 281 |
Total liabilities | 31,380 | 23,767 |
Stockholders' equity: | ||
Preferred stock, $0.01 par value, 100 million shares authorized; none issued | 0 | 0 |
Common stock, $0.01 par value, one billion shares authorized; 2017 — 670 million shares issued and 567 million shares outstanding; 2016 — 631 million shares issued and 526 million shares outstanding | 7 | 6 |
Additional paid-in capital | 3,369 | 1,670 |
Retained earnings | 6,011 | 5,518 |
Treasury stock, common, at cost: 2017 — 103 million shares; 2016 — 105 million shares | (2,116) | (2,121) |
Deferred compensation | 1 | 0 |
Accumulated other comprehensive loss | (25) | (22) |
Total stockholders' equity | 7,247 | 5,051 |
Total liabilities and stockholders' equity | $ 38,627 | $ 28,818 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Millions | Sep. 30, 2017 | Sep. 30, 2016 |
Statement of Financial Position [Abstract] | ||
Securities pledged as collateral for repurchase agreements | $ 99 | $ 0 |
Preferred stock, par value | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 100,000,000 | 100,000,000 |
Preferred stock, shares issued | 0 | 0 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 1,000,000,000 | 1,000,000,000 |
Common stock, shares issued | 670,000,000 | 631,000,000 |
Common stock, shares outstanding | 567,000,000 | 526,000,000 |
Treasury stock, shares | 103,000,000 | 105,000,000 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) shares in Millions, $ in Millions | 12 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | |
Transaction-based revenues: | |||
Commissions and transaction fees | $ 1,384 | $ 1,372 | $ 1,401 |
Asset-based revenues: | |||
Bank deposit account fees | 1,107 | 926 | 839 |
Net interest revenue | 690 | 595 | 622 |
Investment product fees | 423 | 374 | 334 |
Total asset-based revenues | 2,220 | 1,895 | 1,795 |
Other revenues | 72 | 60 | 51 |
Net revenues | 3,676 | 3,327 | 3,247 |
Operating expenses: | |||
Employee compensation and benefits | 962 | 839 | 807 |
Clearing and execution costs | 149 | 136 | 148 |
Communications | 131 | 137 | 125 |
Occupancy and equipment costs | 181 | 171 | 163 |
Depreciation and amortization | 102 | 92 | 91 |
Amortization of acquired intangible assets | 79 | 86 | 90 |
Professional services | 260 | 178 | 159 |
Advertising | 254 | 260 | 248 |
Other | 92 | 110 | 91 |
Total operating expenses | 2,210 | 2,009 | 1,922 |
Operating income | 1,466 | 1,318 | 1,325 |
Other expense (income): | |||
Interest on borrowings | 71 | 53 | 43 |
Loss on debt refinancing | 1 | 0 | 0 |
Gain on sale of investments | 0 | 0 | (7) |
Other | 0 | 0 | 1 |
Total other expense (income) | 72 | 53 | 37 |
Pre-tax income | 1,394 | 1,265 | 1,288 |
Provision for income taxes | 522 | 423 | 475 |
Net income | $ 872 | $ 842 | $ 813 |
Earnings per share - basic (in usd per share) | $ 1.65 | $ 1.59 | $ 1.50 |
Earnings per share - diluted (in usd per share) | $ 1.64 | $ 1.58 | $ 1.49 |
Weighted average shares outstanding - basic (in shares) | 529 | 531 | 543 |
Weighted average shares outstanding - diluted (in shares) | 531 | 534 | 547 |
Dividends declared per share (in usd per share) | $ 0.72 | $ 0.68 | $ 0.60 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 872 | $ 842 | $ 813 |
Investments available-for-sale: | |||
Unrealized loss | (9) | 0 | 0 |
Cash flow hedging instruments: | |||
Net unrealized loss | 0 | 0 | (15) |
Reclassification adjustment for portion of realized loss amortized to net income | 4 | 5 | 4 |
Total other comprehensive income (loss), before tax | (5) | 5 | (11) |
Income tax effect | 2 | (2) | 4 |
Total other comprehensive income (loss), net of tax | (3) | 3 | (7) |
Comprehensive income | $ 869 | $ 845 | $ 806 |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS EQUITY - USD ($) shares in Millions, $ in Millions | Total | Common Stock [Member] | Additional Paid-In Capital [Member] | Retained Earnings [Member] | Treasury Stock [Member] | Deferred Compensation [Member] | Accumulated Other Comprehensive Income (Loss) [Member] |
Beginning balance, value at Sep. 30, 2014 | $ 4,748 | $ 6 | $ 1,618 | $ 4,551 | $ (1,409) | $ 0 | $ (18) |
Beginning balance (in shares) at Sep. 30, 2014 | 545 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income | $ 813 | 813 | |||||
Other comprehensive income (loss), net of tax | (7) | (7) | |||||
Payment of cash dividends | (326) | (326) | |||||
Repurchases of common stock | $ (364) | (364) | |||||
Repurchases of common stock (in shares) | (11) | ||||||
Repurchase of common stock for income tax withholding on stock-based compensation | $ (23) | (23) | |||||
Repurchase of common stock for income tax withholding on stock-based compensation (in shares) | 0 | ||||||
Common stock issued for stock-based compensation, including tax effects | $ 26 | (5) | 31 | ||||
Common stock issued for stock-based compensation, including tax effects (in shares) | 3 | ||||||
Stock-based compensation expense | $ 36 | 36 | |||||
Ending balance, value at Sep. 30, 2015 | $ 4,903 | 6 | 1,649 | 5,038 | (1,765) | 0 | (25) |
Ending balance (in shares) at Sep. 30, 2015 | 537 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income | $ 842 | 842 | |||||
Other comprehensive income (loss), net of tax | 3 | 3 | |||||
Payment of cash dividends | (362) | (362) | |||||
Repurchases of common stock | $ (352) | (352) | |||||
Repurchases of common stock (in shares) | (12) | ||||||
Repurchase of common stock for income tax withholding on stock-based compensation | $ (30) | (30) | |||||
Repurchase of common stock for income tax withholding on stock-based compensation (in shares) | (1) | ||||||
Common stock issued for stock-based compensation, including tax effects | $ 13 | (13) | 26 | ||||
Common stock issued for stock-based compensation, including tax effects (in shares) | 2 | ||||||
Stock-based compensation expense | $ 34 | 34 | |||||
Ending balance, value at Sep. 30, 2016 | $ 5,051 | 6 | 1,670 | 5,518 | (2,121) | 0 | (22) |
Ending balance (in shares) at Sep. 30, 2016 | 526 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income | $ 872 | 872 | |||||
Other comprehensive income (loss), net of tax | (3) | (3) | |||||
Payment of cash dividends | (379) | (379) | |||||
Issuance of common stock | $ 400 | 400 | |||||
Issuance of common stock (in shares) | 11 | ||||||
Acquisition of Scottrade Financial Services, Inc. | $ 1,262 | 1 | 1,261 | ||||
Acquisition of Scottrade Financial Services, Inc., (in shares) | 28 | ||||||
Repurchase of common stock for income tax withholding on stock-based compensation | $ (27) | (27) | |||||
Repurchase of common stock for income tax withholding on stock-based compensation (in shares) | (1) | ||||||
Common stock issued for stock-based compensation, including tax effects | $ 34 | 2 | 32 | ||||
Common stock issued for stock-based compensation, including tax effects (in shares) | 3 | ||||||
Deferred compensation | $ 1 | 1 | |||||
Stock-based compensation expense | 36 | 36 | |||||
Ending balance, value at Sep. 30, 2017 | $ 7,247 | $ 7 | $ 3,369 | $ 6,011 | $ (2,116) | $ 1 | $ (25) |
Ending balance (in shares) at Sep. 30, 2017 | 567 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | |
Cash flows from operating activities: | |||
Net income | $ 872 | $ 842 | $ 813 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 102 | 92 | 91 |
Amortization of acquired intangible assets | 79 | 86 | 90 |
Deferred income taxes | (11) | (8) | (23) |
Loss on debt refinancing | 1 | 0 | 0 |
Gain on sale of investments | 0 | 0 | (7) |
Stock-based compensation | 36 | 34 | 36 |
Excess tax benefits on stock-based compensation | (12) | (16) | (12) |
Other, net | 11 | 16 | 7 |
Changes in operating assets and liabilities: | |||
Cash and investments segregated and on deposit for regulatory purposes | 1,818 | (2,424) | (1,189) |
Receivable from brokers, dealers and clearing organizations | 23 | (328) | 246 |
Receivable from clients, net | (2,073) | 829 | (1,131) |
Receivable from/payable to affiliates, net | (5) | (11) | 6 |
Other receivables, net | 41 | (16) | 3 |
Securities owned, at fair value | (135) | 94 | (92) |
Other assets | (5) | (17) | 45 |
Payable to brokers, dealers and clearing organizations | 110 | (667) | 286 |
Payable to clients | (196) | 3,020 | 1,538 |
Accounts payable and other liabilities | 31 | (58) | 39 |
Net cash provided by (used in) operating activities | 687 | 1,468 | 746 |
Cash flows from investing activities: | |||
Purchase of property and equipment | (197) | (105) | (71) |
Cash paid in business acquisition, net of cash and cash equivalents acquired | (1,288) | 0 | 0 |
Purchase of short-term investments | (66) | (605) | (506) |
Proceeds from sale and maturity of short-term investments | 4 | 604 | 504 |
Purchase of investments available-for-sale, at fair value | 0 | (757) | 0 |
Proceeds from sale of investments | 0 | 0 | 10 |
Other, net | 0 | 0 | 3 |
Net cash provided by (used in) investing activities | (1,547) | (863) | (60) |
Cash flows from financing activities: | |||
Proceeds from issuance of long-term debt | 798 | 0 | 1,248 |
Payment of debt issuance costs | (8) | 0 | (11) |
Principal payments on long-term debt | (385) | 0 | (569) |
Payment of prepayment premium on long-term debt | (54) | 0 | 0 |
Proceeds from securities sold under agreements to repurchase | 97 | 0 | 0 |
Principal payments on notes payable | 0 | 0 | (150) |
Payment of cash dividends | (379) | (362) | (326) |
Proceeds from issuance of common stock | 400 | 0 | 0 |
Proceeds from exercise of stock options | 23 | 0 | 15 |
Purchase of treasury stock | 0 | (352) | (364) |
Purchase of treasury stock for income tax withholding on stock-based compensation | (27) | (30) | (23) |
Excess tax benefits on stock-based compensation | 12 | 16 | 12 |
Net cash provided by (used in) financing activities | 477 | (728) | (168) |
Net increase (decrease) in cash and cash equivalents | (383) | (123) | 518 |
Cash and cash equivalents at beginning of year | 1,855 | 1,978 | 1,460 |
Cash and cash equivalents at end of year | 1,472 | 1,855 | 1,978 |
Supplemental cash flow information: | |||
Interest paid | 59 | 54 | 30 |
Income taxes paid | 483 | 519 | 498 |
Noncash investing activities: | |||
Issuance of common stock in acquisition | $ 1,261 | $ 0 | $ 0 |
Nature of Operations and Summar
Nature of Operations and Summary of Significant Accounting Policies | 12 Months Ended |
Sep. 30, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Nature of Operations and Summary of Significant Accounting Policies | Nature of Operations and Summary of Significant Accounting Policies Basis of Presentation — The consolidated financial statements include the accounts of TD Ameritrade Holding Corporation (the "Parent"), a Delaware corporation, and its wholly-owned subsidiaries (collectively, the "Company"). Intercompany balances and transactions have been eliminated. Nature of Operations — The Company provides securities brokerage services, including trade execution, clearing services and margin lending, through its broker-dealer subsidiaries; futures and foreign exchange trade execution services through its futures commission merchant ("FCM") and forex dealer member ("FDM") subsidiary; and trustee, custodial and other trust-related services to retirement plans and other custodial accounts through its state-chartered trust company subsidiary. The Company also provides cash sweep and deposit account products through third-party relationships, including relationships with affiliates. The Company's broker-dealer subsidiaries are subject to regulation by the Securities and Exchange Commission ("SEC"), the Financial Industry Regulatory Authority ("FINRA") and the various exchanges in which they maintain membership. The Company's FCM/FDM subsidiary is subject to regulation by the Commodity Futures Trading Commission ("CFTC") and the National Futures Association ("NFA"). Dividends from the Company's broker-dealer, FCM/FDM and trust company subsidiaries are a source of liquidity for the Parent. Requirements of the SEC, FINRA and CFTC relating to liquidity, net capital standards and the use of client funds and securities may limit funds available for the payment of dividends from the broker-dealer and FCM/FDM subsidiaries to the holding company. State regulatory requirements may limit funds available for the payment of dividends from the trust company subsidiary to the holding company. Use of Estimates — The preparation of consolidated financial statements in conformity with U.S. generally accepted accounting principles ("GAAP") requires management to make estimates and assumptions that affect the reported amount of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Cash and Cash Equivalents — The Company considers temporary, highly-liquid investments with an original maturity of three months or less to be cash equivalents, except for amounts required to be segregated for regulatory purposes. Cash and Investments Segregated and on Deposit for Regulatory Purposes — Cash and investments segregated and on deposit for regulatory purposes consists primarily of qualified deposits in special reserve bank accounts for the exclusive benefit of clients under Rule 15c3-3 of the Securities Exchange Act of 1934 (the "Exchange Act") and other regulations. Funds can be held in cash, reverse repurchase agreements, U.S. Treasury securities, U.S. government agency mortgage-backed securities and other qualified securities. Reverse repurchase agreements (securities purchased under agreements to resell) are treated as collateralized financing transactions and are carried at amounts at which the securities will subsequently be resold, plus accrued interest. The Company's reverse repurchase agreements are collateralized by U.S. Treasury securities and generally have a maturity of seven days. Cash and investments segregated and on deposit for regulatory purposes also includes amounts that have been segregated or secured for the benefit of futures clients according to the regulations of the CFTC governing futures commission merchants. Securities Borrowed and Securities Loaned — Securities borrowed and securities loaned transactions are recorded at the amount of cash collateral provided or received. Securities borrowed transactions require the Company to provide the counterparty with collateral in the form of cash. The Company receives collateral in the form of cash for securities loaned transactions. For these transactions, the fees earned or incurred by the Company are recorded as net interest revenue on the Consolidated Statements of Income. The related interest receivable from and the brokerage interest payable to broker-dealers are included in other receivables and in accounts payable and other liabilities, respectively, on the Consolidated Balance Sheets. Receivable from/Payable to Clients — Receivable from clients primarily consists of margin loans to securities brokerage clients, which are collateralized by client securities, and is carried at the amount receivable, net of an allowance for doubtful accounts that is primarily based on the amount of unsecured margin balances. Payable to clients primarily consists of client cash held in brokerage accounts and is carried at the amount of client cash on deposit. The Company earns interest revenue and pays interest expense on its receivable from client and payable to client balances, respectively. The interest revenue and expense are included in net interest revenue on the Consolidated Statements of Income. Securities Owned — Securities owned by our broker-dealer subsidiaries are recorded on a trade-date basis and carried at fair value, and the related changes in fair value are generally included in other revenues on the Consolidated Statements of Income. Investments Available-for-sale — Investments available-for-sale are carried at fair value and unrealized gains and losses, net of deferred income taxes, are reflected as a component of accumulated other comprehensive income (loss) on the Consolidated Balance Sheets. Realized gains and losses on investments available-for-sale are determined on the specific identification method and are reflected on the Consolidated Statements of Income. As of September 30, 2017 , investments available-for-sale consists of U.S. government debt securities with contractual maturities between one and five years. There were no material unrealized gains or losses on investments available-for-sale as of September 30, 2017 and 2016 . Property and Equipment — Property and equipment is recorded at cost, net of accumulated depreciation and amortization, except for land, which is recorded at cost. Depreciation is provided using the straight-line method over the estimated useful service lives of the assets, which range from seven to 40 years for buildings and building components and three to seven years for all other depreciable property and equipment. Leasehold improvements are amortized over the lesser of the economic useful life of the improvement or the term of the lease. Software Development — From the date technological feasibility has been established until beta testing is complete, software development costs are capitalized and included in property and equipment. Once the product is fully functional, such costs are amortized in accordance with the Company's normal accounting policies. Software development costs that do not meet capitalization criteria are expensed as incurred. Goodwill — The Company has recorded goodwill for purchase business combinations to the extent the purchase price of each completed acquisition exceeded the fair value of the net identifiable assets of the acquired company. The Company tests goodwill for impairment on an annual basis and more frequently as events occur or changes in circumstances indicate that the carrying amount of such assets may not be recoverable. In performing the impairment tests, the Company utilizes quoted market prices of the Company's common stock to estimate the fair value of the Company as a whole. The estimated fair value is then allocated to the Company's reporting units based on operating revenues, and is compared with the carrying value of the reporting units. No impairment charges have resulted from the annual impairment tests. Amortization of Acquired Intangible Assets — Acquired intangible assets with finite lives are amortized on a straight-line basis over their estimated useful lives, ranging from seven months to 23 years. The acquired intangible asset associated with a trademark license agreement is not subject to amortization because the term of the agreement is considered to be indefinite. Long-Lived Assets and Acquired Intangible Assets — The Company reviews its long-lived assets and finite-lived acquired intangible assets for impairment whenever events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable. If based on that review, changes in circumstances indicate that the carrying amount of such assets may not be recoverable, the Company evaluates recoverability by comparing the undiscounted cash flows associated with the asset to the asset's carrying amount. The Company also evaluates the remaining useful lives of intangible assets to determine if events or trends warrant a revision to the remaining period of amortization. Long-lived assets classified as "held for sale" are reported at the lesser of carrying amount or fair value less cost to sell. As of September 30, 2017 , the Company had $5.0 million of assets classified as held for sale, which are included in other assets on the Consolidated Balance Sheets. There were no assets classified as held for sale as of September 30, 2016 . The Company tests its indefinite-lived acquired intangible asset for impairment on an annual basis and more frequently as events occur or changes in circumstances indicate that the carrying amount of such assets may not be recoverable. To determine if the indefinite-lived intangible asset is impaired, the Company first assesses certain qualitative factors. Based on this assessment, if it is determined that more likely than not the fair value of the indefinite-lived intangible asset is less than its carrying amount, the Company performs a quantitative impairment test. No impairment charges have resulted from the annual impairment tests. Securities Sold Under Agreements to Repurchase — Transactions involving sales of securities under agreements to repurchase (repurchase agreements) are treated as collateralized financing transactions. Under repurchase agreements, the Company receives cash from counterparties and provides U.S. Treasury securities as collateral. These agreements are carried at amounts at which the securities will subsequently be repurchased, plus accrued interest, and the interest expense incurred by the Company is recorded as interest on borrowings on the Consolidated Statements of Income. See " General Contingencies " in Note 15 for a discussion of the potential risks associated with repurchase agreements and how the Company mitigates those risks. Income Taxes — The Company files a consolidated U.S. income tax return with its subsidiaries on a calendar year basis, combined returns for state tax purposes where required and certain of its subsidiaries file separate state income tax returns where required. Deferred tax assets and liabilities are determined based on the differences between the financial statement carrying amounts and tax bases of assets and liabilities using enacted tax rates expected to apply to taxable income in the periods in which the deferred tax asset or liability is expected to be settled or realized. Uncertain tax positions are recognized if they are more likely than not to be sustained upon examination, based on the technical merits of the position. The amount of tax benefit recognized is the largest amount of benefit that is greater than 50% likely of being realized upon settlement. The Company recognizes interest and penalties, if any, related to income tax matters as part of the provision for income taxes on the Consolidated Statements of Income. Capital Stock — The authorized capital stock of the Company consists of a single class of common stock and one or more series of preferred stock as may be authorized for issuance by the Company's board of directors. Voting, dividend, conversion and liquidation rights of the preferred stock would be established by the board of directors upon issuance of such preferred stock. Stock-Based Compensation — The Company measures and recognizes compensation expense based on estimated grant date fair values for all stock-based payment arrangements. Stock-based compensation expense is based on awards expected to vest and therefore is reduced for estimated forfeitures. Forfeitures are estimated at the time of grant based on the Company's historical forfeiture experience and revised in subsequent periods if actual forfeitures differ from those estimates. Deferred Compensation — Company common stock held in a rabbi trust pursuant to a Company deferred compensation plan is recorded at the fair value of the stock at the time it is transferred to the rabbi trust and is classified as treasury stock. The corresponding deferred compensation liability is recorded as a component of stockholders' equity on the Consolidated Balance Sheets . Transaction-based Revenues — Client trades are recorded on a settlement-date basis with such trades generally settling within one to two business days after the trade date. Revenues and expenses related to client trades, including order routing revenue (also referred to as payment for order flow) and revenues from markups on riskless principal trades in fixed-income securities, are recorded on a trade-date basis. Revenues related to client trades are recorded net of promotional allowances. Securities owned by clients, including those that collateralize margin or similar transactions, are not reflected in the accompanying consolidated financial statements. Bank Deposit Account Fees — Bank deposit account fees includes revenues from the Insured Deposit Account ("IDA") agreement with TD Bank USA, N.A. ("TD Bank USA"), TD Bank, N.A. and The Toronto-Dominion Bank ("TD"). Under the IDA agreement, TD Bank USA and TD Bank, N.A. (together, the "TD Depository Institutions") make available to clients of the Company FDIC-insured money market deposit accounts as either designated sweep vehicles or as non-sweep deposit accounts. The Company provides marketing, recordkeeping and support services for the TD Depository Institutions with respect to the money market deposit accounts. In exchange for providing these services, the TD Depository Institutions pay the Company an aggregate marketing fee based on the weighted average yield earned on the client IDA assets, less the actual interest paid to clients, a servicing fee to the TD Depository Institutions and the cost of FDIC insurance premiums. The IDA agreement is described further in Note 21 . In addition, bank deposit account fees includes revenues resulting from a sweep program that is offered to eligible clients of the Company whereby clients' uninvested cash is swept to FDIC-insured accounts at third-party financial institutions participating in the program. Net Interest Revenue — Net interest revenue primarily consists of income generated by client cash and interest charged to clients on margin balances, net of interest paid to clients on their credit balances. It also includes net interest revenue from securities borrowed and securities loaned transactions. Investment Product Fees — Investment product fee revenue consists of revenues earned on client assets invested in money market mutual funds, other mutual funds and certain Company-sponsored investment programs. Advertising — The Company expenses advertising costs the first time the advertising takes place. Client cash offers are also characterized as advertising expense, rather than as a reduction of revenue, because there is generally little or no cumulative revenue associated with an individual client earning a cash offer at the time the consideration is recognized in the Consolidated Statement of Income. Derivatives and Hedging Activities — The Company occasionally utilizes derivative instruments to manage risks, which may include market price, interest rate and foreign currency risks. The Company does not use derivative instruments for speculative or trading purposes. Derivatives are recorded on the Consolidated Balance Sheets as assets or liabilities at fair value. Derivative instruments properly designated to hedge exposure to changes in the fair value of assets or liabilities are accounted for as fair value hedges. Derivative instruments properly designated to hedge exposure to the variability of expected future cash flows or other forecasted transactions are accounted for as cash flow hedges. The Company formally documents the risk management objective and strategy for each hedge transaction. Derivative instruments that do not qualify for hedge accounting are carried at fair value on the Consolidated Balance Sheets with unrealized gains and losses recorded currently on the Consolidated Statements of Income. Cash flows from derivative instruments accounted for as fair value hedges or cash flow hedges are classified in the same category on the Consolidated Statements of Cash Flows as the cash flows from the items being hedged. For additional information on the Company's fair value and cash flow hedging instruments, see Note 10 . Earnings Per Share — Basic earnings per share ("EPS") is computed by dividing net income by the weighted average common shares outstanding for the period. Diluted EPS reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock, except when such assumed exercise or conversion would have an antidilutive effect on EPS. The difference between the numerator and denominator used in the Company's computation of basic and diluted earnings per share consists of common stock equivalent shares related to stock-based compensation. There were no material antidilutive awards for fiscal years 2017 and 2015. The Company excluded from the calculation of diluted earnings per share 0.4 million shares underlying the stock-based compensation awards for fiscal year 2016 because their inclusion would have been antidilutive. Recently Adopted Accounting Pronouncements ASU 2017-03 - In January 2017, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2017-03, Amendments to SEC Paragraphs Pursuant to Staff Announcements at the September 22, 2016 and November 17, 2016 EITF Meetings . The applicable SEC Staff announcement applies to the following recently issued accounting standards that have not yet been adopted by the Company: Revenue from Contracts with Customers (ASU 2014-09); Leases (ASU 2016-02); Measurement of Credit Losses on Financial Instruments (ASU 2016-13); and any subsequent amendments to the aforementioned ASUs. Based on the views of the SEC staff, the amendments in ASU 2017-03 require entities to consider providing additional qualitative financial statement disclosures when the financial statement impact of adopting the three new ASUs mentioned above is not known or cannot be reasonably estimated. Such qualitative disclosures should include a description of the effect of the accounting policies that the registrant expects to apply, if determined, and a comparison to the entity's current accounting policies. In addition, an entity should describe the status of its process to implement the new standards and the significant implementation matters yet to be addressed. Since this update is intended to add disclosures related to certain ASUs, the adoption of ASU 2017-03 did not have a material impact on the Company's consolidated financial statements. Recently Issued Accounting Pronouncements ASU 2017-12 - In August 2017, the FASB issued ASU 2017-12, Targeted Improvements to Accounting for Hedging Activities , which will amend the guidance in Accounting Standards Codification ("ASC") Topic 815, Derivatives and Hedging. The objective of this ASU is to improve the financial reporting of hedging relationships to better portray the economic results of an entity's risk management activities in its financial statements through changes to both the designation and measurement guidance for qualifying hedging relationships and to the presentation of hedge results. In addition, the amendments in this ASU make certain targeted improvements to simplify the application of the hedge accounting guidance in current GAAP. ASU 2017-12 is effective for fiscal years beginning after December 15, 2018 and interim periods within those fiscal years, with early adoption permitted. All transition requirements and elections under ASU 2017-12 should be applied to hedging relationships existing on the date of adoption, with the effect of the adoption reflected as of the beginning of the fiscal year of adoption. The amended presentation and disclosure guidance is required only prospectively. ASU 2017-12 will be effective for the Company's fiscal year beginning on October 1, 2019. The Company is currently assessing the impact this ASU will have on its consolidated financial statements. ASU 2017-04 - In January 2017, the FASB issued ASU 2017-04, Simplifying the Test for Goodwill Impairment, which is intended to simplify the test for goodwill impairment by eliminating Step 2 from the goodwill impairment test, which measures a goodwill impairment loss by comparing the implied fair value of a reporting unit's goodwill with the carrying amount of that goodwill. Under the amendments in this ASU, an entity should perform its annual goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. An entity should recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit's fair value; however, the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. When measuring the goodwill impairment loss, income tax effects from any tax deductible goodwill on the carrying amount of the reporting unit should be considered, if applicable. An entity will still have the option to perform the qualitative assessment for a reporting unit to determine if the quantitative test is necessary. ASU 2017-04 should be applied prospectively and is effective for annual or interim goodwill impairment tests in fiscal years beginning after December 15, 2019, with early adoption permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. ASU 2017-04 will be effective for the Company's fiscal year beginning October 1, 2020. The Company does not expect this ASU to have a material impact on its consolidated financial statements. ASU 2016-18 - In November 2016, the FASB issued ASU 2016-18, Restricted Cash . This ASU will amend the guidance in ASC Topic 230, Statement of Cash Flows , and is intended to reduce the diversity in the classification and presentation of changes in restricted cash on the statement of cash flows. The amendments within this ASU will require that the reconciliation of the beginning-of-period and end-of-period cash and cash equivalents amounts shown on the statement of cash flows include restricted cash and restricted cash equivalents. If restricted cash and restricted cash equivalents are presented separately from cash and cash equivalents on the balance sheet, an entity will be required to reconcile the amounts presented on the statement of cash flows to the amounts on the balance sheet. An entity will also be required to disclose information regarding the nature of the restrictions. ASU 2016-18 requires retrospective application and is effective for fiscal years beginning after December 15, 2017 and interim periods within those fiscal years, with early adoption permitted. ASU 2016-18 will be effective for the Company's fiscal year beginning October 1, 2018. The adoption of ASU 2016-18 will change the manner in which restricted cash and restricted cash equivalents are presented in the Company's consolidated financial statements. ASU 2016-16 - In October 2016, the FASB issued ASU 2016-16, Intra-Entity Transfers of Assets Other Than Inventory. This ASU will amend the guidance in ASC Topic 740, Income Taxes . The amendments in this ASU are intended to improve the accounting for the income tax consequences of intra-entity transfers of assets other than inventory by requiring an entity to recognize the income tax consequences when a transfer occurs, instead of when the asset is sold to a third party. ASU 2016-16 requires modified retrospective adoption and is effective for annual reporting periods beginning after December 15, 2017, including interim reporting periods within those annual reporting periods, with early adoption permitted. ASU 2016-16 will be effective for the Company's fiscal year beginning October 1, 2018. The Company does not expect this ASU to have an impact on its consolidated financial statements. ASU 2016-13 - In June 2016, the FASB issued ASU 2016-13, Measurement of Credit Losses on Financial Instruments . The main objective of ASU 2016-13 is to provide financial statement users with more decision-useful information about the expected credit losses on financial instruments and other commitments to extend credit held by an entity at each reporting date. To achieve this objective, the amendments in this update replace the incurred loss impairment methodology in current GAAP with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to develop credit loss estimates. ASU 2016-13 is effective for fiscal years beginning after December 15, 2019 and interim periods within those fiscal years, with early adoption permitted. Therefore, ASU 2016-13 will be effective for the Company's fiscal year beginning on October 1, 2020, using a modified retrospective approach. The Company is currently assessing the impact this ASU will have on its consolidated financial statements. ASU 2016-09 - In March 2016, the FASB issued ASU 2016-09, Improvements to Employee Share-Based Payment Accounting . The guidance in ASU 2016-09 simplifies several aspects of the accounting for share-based payment transactions, including: (1) all excess tax benefits and tax deficiencies should be recognized as income tax expense or benefit in the income statement; (2) tax effects of exercised or vested awards should be treated as discrete items in the period in which they occur; (3) excess tax benefits should be recognized regardless of whether the benefit reduces taxes payable in the current period; (4) excess tax benefits should be classified along with other income tax cash flows as an operating activity; (5) an entity can make an accounting policy election to either estimate the number of awards that are expected to vest or account for forfeitures when they occur; (6) the threshold to qualify for equity classification will permit withholding up to the maximum statutory rates in the applicable jurisdictions; and (7) cash paid by an employer when directly withholding shares for tax withholding purposes should be classified as a financing activity in the statement of cash flows. The transition requirements are dependent upon each amendment within this update and will be applied either prospectively, retrospectively or using a modified retrospective transition method. ASU 2016-09 is effective for annual periods beginning after December 15, 2016 and interim periods within those annual periods. Therefore, ASU 2016-09 will be effective for the Company's fiscal year beginning October 1, 2017. The Company expects the adoption of this ASU may create some volatility in its quarterly and annual effective income tax rate related to the excess tax benefits and tax deficiencies being recognized as income tax expense or benefit in the Consolidated Statements of Income. The amount of excess tax benefits and tax deficiencies recognized will depend on the volume of equity compensation during a particular period and on the market price of the Company's common stock at the date the equity awards either vest or are exercised. A large portion of the impact from the adoption of ASU 2016-09 will likely occur during the first quarter of each fiscal year due to the Company's historic practice of granting the majority of equity compensation in that period. ASU 2016-02 - In February 2016, the FASB issued ASU 2016-02, Leases . This ASU will supersede the guidance in ASC Topic 840, Leases . Under ASU 2016-02, for lease arrangements exceeding a 12-month term, a lessee will be required to recognize in the balance sheet a liability to make lease payments (the lease liability) and a right-of-use asset representing its right to use the underlying asset for the lease term. ASU 2016-02 will retain a distinction between finance and operating leases; however, the principal difference from the previous guidance is that lease assets and liabilities arising from operating leases will be recognized in the balance sheet. The recognition, measurement and presentation of expenses and cash flows arising from a lease by a lessee will not significantly change from current GAAP. The accounting applied by a lessor will be largely unchanged from that applied under current GAAP. ASU 2016-02 is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years, and will require an entity to recognize and measure leases at the beginning of the earliest period presented using a modified retrospective approach. Therefore, ASU 2016-02 will be effective for the Company's fiscal year beginning October 1, 2019. Early adoption is permitted. The Company is currently assessing the impact of this ASU, but does not expect the standard to have a material impact on its net income. Upon adoption of ASU 2016-02, the Company expects to recognize right-of-use assets and lease liabilities for its operating leases, with initial measurement as defined by the ASU, in its Consolidated Balance Sheets. ASU 2014-09 - In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers , to clarify the principles of recognizing revenue from contracts with customers and to improve financial reporting by creating common revenue recognition guidance for U.S. GAAP and International Financial Reporting Standards. This ASU will supersede the revenue recognition requirements in ASC Topic 605, Revenue Recognition, and most industry-specific guidance. Entities are required to apply the following steps when recognizing revenue under ASU 2014-09: (1) identify the contract(s) with a customer; (2) identify the performance obligations in the contract; (3) determine the transaction price; (4) allocate the transaction price to the performance obligations in the contract; and (5) recognize revenue when (or as) the entity satisfies a performance obligation. This ASU also requires additional disclosures related to the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts. An entity may apply the amendments by using one of the following two methods: (1) retrospective application to each prior reporting period presented or (2) a modified retrospective approach, requiring the standard be applied only to the most current period presented, with the cumulative effect of initially applying the standard recognized at the date of initial application. ASU 2014-09 is effective for annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period, with early adoption permitted. Subsequent to issuing ASU 2014-09, the FASB has issued additional standards for the purpose of clarifying certain aspects of ASU 2014-09. The subsequently issued ASUs have the same effective date and transition requirements as ASU 2014-09. The Company plans to adopt the revenue recognition standard as of October 1, 2018. The guidance does not apply to revenue associated with financial instruments, such as interest revenue, which is accounted for under other GAAP. Accordingly, the Company does not expect the adoption of this standard to impact net interest revenue. While the Company has not yet identified any material changes in the timing of revenue recognition, its review is ongoing. The Company has not selected a transition method and continues to evaluate the potential impacts that these revenue recognition standards may have on its consolidated financial statements, including the incremental costs of obtaining contracts, gross versus net reporting, and additional disclosure requirements. |
Business Acquisition
Business Acquisition | 12 Months Ended |
Sep. 30, 2017 | |
Business Combinations [Abstract] | |
Business Acquisition | Business Acquisition On September 18, 2017 , the Company completed its previously announced acquisition of Scottrade Financial Services, Inc. ("Scottrade"), a Delaware corporation, pursuant to an Agreement and Plan of Merger dated October 24, 2016 (the "Merger Agreement"), among the Company, Rodger O. Riney, as Voting Trustee of the Rodger O. Riney Family Voting Trust U/A/D 12/31/2012 (the "Riney Stockholder"), and Alto Acquisition Corp. (the "Merger Subsidiary"), a wholly-owned subsidiary of the Company. Pursuant to the terms of the Merger Agreement, the Merger Subsidiary merged with and into Scottrade (the "Acquisition"), with Scottrade surviving as a wholly-owned subsidiary of the Company. Founded in 1980, Scottrade provides securities brokerage and investment services to retail investors, traders and independent registered investment advisors through its online platform as well as through nearly 500 branch locations. The Company's board of directors considered various factors in approving the Acquisition, including significant synergy opportunities identified by the Company's management, adding significant scale to the Company's retail business with the addition of approximately three million funded client accounts, extending the Company's leadership in trading, and expanding the size of the Company's branch network. Immediately prior to the closing of the Acquisition, pursuant to the terms and conditions set forth in a separate Agreement and Plan of Merger, TD Bank, N.A., a wholly-owned subsidiary of The Toronto-Dominion Bank ("TD"), acquired Scottrade Bank, which was a wholly-owned subsidiary of Scottrade, from Scottrade (the "Bank Merger") for approximately $1.38 billion in cash, subject to post-closing adjustments (the "Bank Merger Consideration"). Subsequent to the closing of the Acquisition and prior to the fiscal year ended September 30, 2017, approximately $27 million of post-closing adjustments were identified related to the Bank Merger Consideration. These post-closing adjustments were included in the purchase price allocation as a payable to affiliate. Immediately prior to the closing of the Acquisition, the Company also issued 11,074,197 shares of the Company's common stock to TD at a price of $36.12 per share, or approximately $400 million , pursuant to a subscription agreement dated October 24, 2016 between the Company and TD and in satisfaction of certain preemptive stock purchase rights of TD as set forth in the Stockholders Agreement between the Company and TD dated as of June 22, 2005 , as amended. Immediately following the Bank Merger, the Acquisition was completed. The aggregate consideration paid by the Company for all of the outstanding capital stock of Scottrade consisted of 27,685,493 shares of the Company's common stock and $3.07 billion in cash, subject to post-closing adjustments (the "Cash Consideration"). The Cash Consideration was funded with the Bank Merger Consideration paid by TD Bank, N.A. to Scottrade, the proceeds received from the Company's issuance of the 3.300% Senior Notes on April 27, 2017 , cash on hand and cash proceeds from the sale of the Company's common stock to TD, as described above. At the closing of the Acquisition, 1,736,815 shares of the Company's common stock otherwise payable to the Riney Stockholder were deposited into a third-party custodian account (the “Escrow Account”) pursuant to an escrow agreement to secure certain indemnification obligations of the Riney Stockholder under the Merger Agreement. For information regarding the Company's issuance of the 3.300% Senior Notes, see Note 10 – Long-term Debt and Other Borrowings. In connection with the closing of the Acquisition, the Company also entered into a registration rights agreement with TD, the Riney Stockholder and the other stockholders described therein (the "Ricketts Stockholders") providing for certain customary registration rights with respect to their shares of the Company's common stock. With respect to TD and the Ricketts Stockholders, this registration rights agreement supersedes and replaces the Amended and Restated Registration Rights Agreement, dated as of June 22, 2005, by and among the Company, TD and the Ricketts Stockholders. In connection with the closing of the Acquisition, the Company and the Riney Stockholder also entered into a stockholders agreement (the "Riney Stockholders Agreement"), which contains various provisions relating to stock ownership, voting, election of directors and other matters. The Company accounted for the purchase of Scottrade using the acquisition method of accounting under GAAP and accordingly, the purchase price of the Acquisition was allocated to the assets acquired and liabilities assumed based on their estimated fair values as of the date of acquisition. Due to the timing of the Acquisition, the estimated fair values of the assets acquired and liabilities assumed are considered provisional and are based on currently available information. The determination of estimated fair values requires management to make significant estimates and assumptions. The Company believes that the information available provides a reasonable basis for estimating the fair values of assets acquired and liabilities assumed; however, these provisional estimates may be adjusted upon the availability of new information regarding facts and circumstances which existed at the date of Acquisition, and such adjustments are not expected to be material to the Company's consolidated financial statements. The Company expects to finalize the valuation of assets and liabilities as soon as practicable, but not later than one year from the Acquisition date. Any adjustments to the initial estimates of the fair value of the acquired assets and liabilities assumed will be recorded as adjustments to the respective assets and liabilities, with the residual amounts allocated to goodwill. Goodwill associated with the Acquisition was primarily attributable to the anticipated synergies from combining the operations of the Company and Scottrade. Approximately $1.61 billion of the goodwill associated with the Acquisition is expected to be deductible for income tax purposes. The purchase price for Scottrade was comprised of the following (dollars in millions): TD Ameritrade Holding Corporation common stock issued to the Riney Stockholder and the Escrow Account (1) $ 1,261 Cash paid at closing (2) 3,073 Total purchase price $ 4,334 (1) Represents the value of 27,685,493 shares of the Company's common stock at a price of $45.55 per share. The per share value is based on the opening market price of the Company's common stock as of September 18, 2017, the Acquisition date. At the closing of the Acquisition, the Riney Stockholder received 25,948,678 shares of the Company's common stock and the remaining 1,736,815 shares of the Company's common stock otherwise payable to the Riney Stockholder were deposited into the Escrow Account. (2) Includes $1.38 billion of Bank Merger Consideration paid by TD Bank, N.A. to Scottrade, which was used to fund a portion of the Acquisition. The provisional purchase price allocation for Scottrade is summarized as follows (dollars in millions): Cash and cash equivalents (1) $ 1,785 Cash and investments segregated and on deposit for regulatory purposes 3,535 Receivable from brokers, dealers and clearing organizations 167 Receivable from clients, net 3,137 Receivable from affiliates 29 Other receivables 55 Securities owned 37 Property and equipment 133 Goodwill 1,746 Acquired intangible assets 974 Deferred tax assets 75 Other assets 35 Total assets acquired 11,708 Payable to brokers, dealers and clearing organizations (354 ) Payable to clients (6,248 ) Accounts payable and other liabilities (230 ) Payable to affiliates (2) (103 ) Long-term debt (3) (439 ) Total liabilities assumed (7,374 ) Total provisional purchase price allocated $ 4,334 (1) Includes $1.38 billion of Bank Merger Consideration paid by TD Bank, N.A. to Scottrade, which was used to fund a portion of the Acquisition. (2) Includes approximately $27 million payable to TD Bank, N.A. for post-closing adjustments related to the Bank Merger Consideration, which were identified subsequent to the closing of the Acquisition and prior to the fiscal year ended September 30, 2017. (3) On the date of Acquisition, amounts owed by Scottrade under its 6.125% senior notes, including a prepayment premium, and the amount owed under its 6.18% secured loan were repaid by the Company. The Company has allocated $974 million of the purchase price to acquired intangible assets, consisting of client relationships, trade names and technology. The estimated fair values of the acquired intangible assets were determined, with the assistance of an independent third-party valuation firm, using the multi-period excess earnings method for client relationships and the relief-from-royalty method for trade names and technology. All methods are forms of the income approach, which require a forecast of all the expected future cash flows. The following table summarizes the major classes of acquired intangible assets and the respective weighted-average estimated amortization periods (dollars in millions): Estimated Fair Value Weighted- Average Estimated Amortization Period (Years) Client relationships $ 955 18.0 Trade names 10 1.3 Technology 9 0.6 Total acquired intangible assets $ 974 17.7 The following unaudited pro forma financial information sets forth the results of operations of the Company as if the Acquisition had occurred on October 1, 2015, the beginning of the comparable fiscal year prior to the year of acquisition. The unaudited pro forma results include certain adjustments for acquisition-related costs, depreciation, amortization of intangible assets, interest expense on acquisition financing, and related income tax effects, and do not reflect potential revenue enhancements, cost savings or operating synergies that the Company expects to realize after the Acquisition. The unaudited pro forma financial information is based on currently available information, is presented for informational purposes only, and is not indicative of future operations or results had the Acquisition been completed as of October 1, 2015 or any other date. The following table summarizes the unaudited pro forma financial information for the fiscal years indicated (dollars in millions): 2017 2016 (unaudited) Pro forma net revenues $ 4,586 $ 4,158 Pro forma net income $ 921 $ 700 Pro forma basic earnings per share $ 1.62 $ 1.23 Pro forma diluted earnings per share $ 1.62 $ 1.22 The Company's consolidated financial statements include the results of operations for Scottrade beginning September 18, 2017. Since the date of Acquisition, net revenues of $38 million and a net loss of $11 million from the acquired Scottrade business have been included in the Company's Consolidated Statement of Income for the fiscal year ended September 30, 2017. Transactions Recognized Separately From the Acquisition of Assets and Assumptions of Liabilities The Company incurred transaction costs related to the Acquisition, such as legal, investment banking and consulting fees, of $52 million and $6 million for fiscal years 2017 and 2016, respectively, which are primarily included in professional services on the Consolidated Statements of Income. |
Cash and Cash Equivalents
Cash and Cash Equivalents | 12 Months Ended |
Sep. 30, 2017 | |
Cash and Cash Equivalents [Abstract] | |
Cash and Cash Equivalents | Cash and Cash Equivalents The Company's cash and cash equivalents is summarized in the following table (dollars in millions): September 30, 2017 2016 Broker-dealer subsidiaries $ 997 $ 1,153 Corporate 279 460 Futures commission merchant and forex dealer member subsidiary 98 125 Trust company subsidiary 79 85 Investment advisory subsidiaries 19 32 Total $ 1,472 $ 1,855 Capital requirements may limit the amount of cash available for dividend from the broker-dealer, FCM/FDM and trust company subsidiaries to the Parent. |
Cash and Investments Segregated
Cash and Investments Segregated and on Deposit for Regulatory Purposes | 12 Months Ended |
Sep. 30, 2017 | |
Restricted Cash and Investments [Abstract] | |
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 consists of the following (dollars in millions): September 30, 2017 2016 U.S. government debt securities $ 4,019 $ 6,523 Cash in demand deposit accounts 3,653 657 U.S. government agency mortgage-backed securities 1,486 — Reverse repurchase agreements (collateralized by U.S. government debt securities) 1,004 1,288 Cash on deposit with futures commission merchants 209 186 U.S. government debt securities on deposit with futures commission merchant 75 75 Total $ 10,446 $ 8,729 |
Receivable from and Payable to
Receivable from and Payable to Brokers, Dealers and Clearing Organizations | 12 Months Ended |
Sep. 30, 2017 | |
Brokers and Dealers [Abstract] | |
Receivable from and Payable to Brokers, Dealers and Clearing Organizations | Receivable from and Payable to Brokers, Dealers and Clearing Organizations Amounts receivable from and payable to brokers, dealers and clearing organizations consist of the following (dollars in millions): September 30, 2017 2016 Receivable: Deposits paid for securities borrowed $ 1,154 $ 1,051 Clearing organizations 151 116 Broker-dealers 21 16 Securities failed to deliver 8 7 Total $ 1,334 $ 1,190 Payable: Deposits received for securities loaned $ 2,449 $ 1,990 Clearing organizations 32 27 Securities failed to receive 21 21 Broker-dealers 2 2 Total $ 2,504 $ 2,040 |
Allowance for Doubtful Accounts
Allowance for Doubtful Accounts on Receivables | 12 Months Ended |
Sep. 30, 2017 | |
Valuation and Qualifying Accounts [Abstract] | |
Allowance for Doubtful Accounts on Receivables | Allowance for Doubtful Accounts on Receivables The following table summarizes activity in the Company's allowance for doubtful accounts on client and other receivables for the fiscal years indicated (dollars in millions): 2017 2016 2015 Beginning balance $ 9 $ 12 $ 10 Provision for doubtful accounts, net 2 2 6 Acquired in business acquisition 2 — — Write-off of doubtful accounts (2 ) (5 ) (4 ) Ending balance $ 11 $ 9 $ 12 |
Property and Equipment
Property and Equipment | 12 Months Ended |
Sep. 30, 2017 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | Property and Equipment Property and equipment consists of the following (dollars in millions): September 30, 2017 2016 Buildings and building components $ 351 $ 269 Computer equipment 270 240 Software 215 187 Leasehold improvements 173 159 Building construction in process 101 12 Land 77 44 Other property and equipment 83 75 1,270 986 Less: Accumulated depreciation and amortization (518 ) (460 ) Property and equipment at cost, net $ 752 $ 526 |
Goodwill and Acquired Intangibl
Goodwill and Acquired Intangible Assets | 12 Months Ended |
Sep. 30, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Acquired Intangible Assets | Goodwill and Acquired Intangible Assets The Company has recorded goodwill for purchase business combinations to the extent the purchase price of each completed acquisition exceeded the fair value of the net identifiable tangible and intangible assets of each acquired company. The following table summarizes changes in the carrying amount of goodwill (dollars in millions): Balance as of September 30, 2016 (1) $ 2,467 Goodwill recorded in acquisition of Scottrade (see Note 2) 1,746 Balance as of September 30, 2017 $ 4,213 (1) There were no material changes in the carrying amount of goodwill during the fiscal year ended September 30, 2016. Acquired intangible assets consist of the following (dollars in millions): September 30, 2017 2016 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Client relationships $ 2,183 $ (877 ) $ 1,306 $ 1,228 $ (799 ) $ 429 Technology and content 108 (100 ) 8 99 (99 ) — Trade names 10 — 10 — — — Trademark license 146 — 146 146 — 146 $ 2,447 $ (977 ) $ 1,470 $ 1,473 $ (898 ) $ 575 Amortization expense on acquired intangible assets was $79 million , $86 million and $90 million for fiscal years 2017 , 2016 and 2015 , respectively. Estimated future amortization expense for acquired intangible assets outstanding as of September 30, 2017 is as follows (dollars in millions): Fiscal Year Estimated Amortization Expense 2018 $ 139 2019 125 2020 116 2021 106 2022 105 Thereafter (to 2035) 733 Total $ 1,324 |
Exit Liabilities
Exit Liabilities | 12 Months Ended |
Sep. 30, 2017 | |
Restructuring and Related Activities [Abstract] | |
Exit Liabilities | Exit Liabilities During fiscal year 2017, the Company recorded exit liabilities related to the Acquisition described in Note 2, which are primarily included in accounts payable and other liabilities on the Consolidated Balance Sheets. In order to attain the anticipated synergies from combining the operations of the Company and Scottrade, the Company expects to incur acquisition-related exit costs ranging from approximately $455 million to $545 million , consisting of severance pay and other termination benefits ranging from $300 million to $320 million and contract termination costs ranging from $155 million to $225 million . The Company incurred pre-tax charges of $35 million and assumed liabilities from the Acquisition of $100 million for these anticipated acquisition-related exit costs during the fourth quarter of the current fiscal year, with the remaining exit costs expected to be incurred and charged to expense over the course of the Scottrade integration during fiscal year 2018. The following is a summary of the activity in the Company’s exit liabilities by the Statement of Income classification (dollars in millions): Employee Compensation and Benefits Other Total Balance, September 30, 2016 $ 4 $ — $ 4 Exit liabilities assumed in business acquisition 100 — 100 Costs incurred and charged to expense 43 1 44 Costs paid or otherwise settled (9 ) (1 ) (10 ) Balance, September 30, 2017 $ 138 $ — $ 138 There were no material exit liabilities recorded during fiscal years 2016 and 2015. |
Long-term Debt and Other Borrow
Long-term Debt and Other Borrowings | 12 Months Ended |
Sep. 30, 2017 | |
Debt Disclosure [Abstract] | |
Long-term Debt and Other Borrowings | Long-term Debt and Other Borrowings Long-term debt and other borrowings consist of the following (dollars in millions): September 30, 2017 Face Value Unamortized Discounts and Debt Issuance Costs Fair Value Adjustment (1) Net Carrying Value Other borrowings: Securities sold under agreements to repurchase $ 97 $ — $ — $ 97 Long-term debt: Senior Notes: 5.600% Notes due 2019 500 (1 ) 15 514 2.950% Notes due 2022 750 (5 ) — 745 3.625% Notes due 2025 500 (3 ) 11 508 3.300% Notes due 2027 800 (9 ) (3 ) 788 Subtotal - Long-term debt 2,550 (18 ) 23 2,555 Total long-term debt and other borrowings $ 2,647 $ (18 ) $ 23 $ 2,652 September 30, 2016 Face Value Unamortized Discounts and Debt Issuance Costs Fair Value Adjustment (1) Net Carrying Value Senior Notes: 5.600% Notes due 2019 $ 500 $ (2 ) $ 33 $ 531 2.950% Notes due 2022 750 (6 ) — 744 3.625% Notes due 2025 500 (4 ) 46 542 Total long-term debt $ 1,750 $ (12 ) $ 79 $ 1,817 (1) Fair value adjustments relate to changes in the fair value of the debt while in a fair value hedging relationship. See " Fair Value Hedging " below. Fiscal year maturities on long-term debt outstanding at September 30, 2017 are as follows (dollars in millions): 2018 $ — 2019 — 2020 500 2021 — 2022 750 Thereafter 1,300 Total $ 2,550 Senior Notes — The Company's unsecured, fixed-rate Senior Notes were each sold through a public offering and pay interest semi-annually in arrears. Key information about the Senior Notes is summarized in the following table (dollars in millions): Description Date Issued Maturity Date Aggregate Principal Interest Rate 2019 Notes November 25, 2009 December 1, 2019 $500 5.600% 2022 Notes March 4, 2015 April 1, 2022 $750 2.950% 2025 Notes October 17, 2014 April 1, 2025 $500 3.625% 2027 Notes April 27, 2017 April 1, 2027 $800 3.300% The Company used the proceeds from the issuance of the 2027 Notes during fiscal 2017 to finance a portion of the cash consideration paid by the Company in its acquisition of Scottrade. During fiscal 2015, the Company used the net proceeds from the issuance of the 2025 Notes, together with cash on hand, to repay in full the outstanding principal under its $500 million aggregate principal amount of 4.150% Senior Notes that matured on December 1, 2014 (the "2014 Notes"). In addition, the Company issued the 2022 Notes for general corporate purposes, including liquidity for operational contingencies. Unlike the 2022 Notes, 2025 Notes and 2027 Notes, which are not required to be guaranteed by any of the Company's subsidiaries, the 2019 Notes are required to be jointly and severally and fully and unconditionally guaranteed by each of the Company’s current and future subsidiaries that is or becomes a borrower or a guarantor under the TD Ameritrade Holding Corporation Credit Agreement described below. As of April 21, 2017 , the obligations under the TD Ameritrade Holding Corporation Credit Agreement are no longer guaranteed by any subsidiary of the Parent; therefore the guarantee of the 2019 Notes was released. The Company may redeem the 2019 Notes, in whole at any time or in part from time to time, at a redemption price equal to the greater of (a) 100% of the principal amount of the notes being redeemed, and (b) the sum of the present values of the remaining scheduled payments of principal and interest on the notes being redeemed, discounted to the date of redemption on a semi-annual basis at the comparable U.S. Treasury rate, plus 35 basis points, plus accrued and unpaid interest to the date of redemption. The Company may redeem the 2022 Notes, 2025 Notes and 2027 Notes, in whole or in part, at any time prior to February 1, 2022 , January 1, 2025 and January 1, 2027 , respectively, at a redemption price equal to the greater of (a) 100% of the principal amount of the notes being redeemed, and (b) the sum of the present values of the remaining scheduled payments of principal and interest on the notes being redeemed, discounted to the date of redemption on a semi-annual basis at the comparable U.S. Treasury rate, plus 15 basis points in the case of the 2022 Notes, 25 basis points in the case of the 2025 Notes and 20 basis points in the case of the 2027 Notes, plus, in each case, accrued and unpaid interest to the date of redemption. The Company may redeem the 2022 Notes, 2025 Notes and 2027 Notes, in whole or in part, at any time on or after February 1, 2022 , January 1, 2025 and January 1, 2027 , respectively, at a redemption price equal to 100% of the principal amount of the notes being redeemed, plus, in each case, accrued and unpaid interest to the date of redemption. Securities Sold Under Agreements to Repurchase (repurchase agreements) — On September 15, 2017 , the Company entered into a repurchase agreement to finance its short-term liquidity and capital needs. The maturity date of the repurchase agreement is December 15, 2017 . Under the repurchase agreement, the Company received cash of $97 million from the counterparty and provided U.S. Treasury securities as collateral. The applicable interest rate under the repurchase agreement is calculated based on one-month LIBOR, plus an interest rate margin of two basis points . As of September 30, 2017, the effective interest rate was 1.25% . The Company will repurchase the collateral on December 15, 2017 for $97 million , plus accrued interest. Secured Loan — On September 15, 2014, the Company entered into a bank loan agreement in the aggregate principal amount of $69 million , the proceeds of which were used to purchase real estate for use in the Company's operations. During fiscal 2015, the Company paid in full the outstanding principal balance of the loan. Fair Value Hedging — The Company is exposed to changes in the fair value of its fixed-rate Senior Notes resulting from interest rate fluctuations. To hedge a portion of this exposure, the Company has entered into fixed-for-variable interest rate swaps on the 2019 Notes, 2025 Notes and 2027 Notes. Each fixed-for-variable interest rate swap has a notional amount and a maturity date matching the aggregate principal amount and maturity date, respectively, for each of the respective Senior Notes. The interest rate swaps effectively change the fixed-rate interest on the 2019 Notes, 2025 Notes and 2027 Notes to variable-rate interest. Under the terms of the interest rate swap agreements, the Company receives semi-annual fixed-rate interest payments based on the same rates applicable to the Senior Notes, and makes quarterly variable-rate interest payments based on three-month LIBOR plus (a) 2.3745% for the swap on the 2019 Notes, (b) 1.1022% for the swap on the 2025 Notes and (c) 1.0340% for the swaps on the 2027 Notes. As of September 30, 2017 , the weighted average effective interest rate on the aggregate principal balance of the 2019 Notes, 2025 Notes and 2027 Notes was 2.68% . The interest rate swaps are accounted for as fair value hedges and qualify for the shortcut method of accounting. Changes in the payment of interest resulting from the interest rate swaps are recorded in interest on borrowings on the Consolidated Statements of Income. Changes in fair value of the interest rate swaps are completely offset by changes in fair value of the related notes, resulting in no effect on net income. The following table summarizes gains and losses resulting from changes in the fair value of interest rate swaps designated as fair value hedges and the hedged fixed-rate debt for the fiscal years indicated (dollars in millions): 2017 2016 2015 Gain (loss) on fair value of interest rate swaps $ (56 ) $ 16 $ 31 Gain (loss) on fair value of hedged fixed-rate debt 56 (16 ) (31 ) Net gain (loss) recorded in interest on borrowings $ — $ — $ — On October 5, 2017, the Company entered into fixed-for-variable interest rate swaps on the 2022 Notes for a notional amount of $750 million , with maturity dates matching the maturity date of the 2022 Notes. Under the terms of the interest rate swap agreements, the Company receives semi-annual fixed-rate interest payments based on the same rate applicable to the 2022 Notes, and makes quarterly variable-rate interest payments based on three-month LIBOR plus 0.9486% . Cash Flow Hedging – On January 17, 2014 , the Company entered into forward-starting interest rate swap contracts with an aggregate notional amount of $500 million , to hedge against changes in the benchmark interest rate component of future interest payments resulting from the anticipated refinancing of the 2014 Notes. The Company designated the contracts as a cash flow hedge of the future interest payments. Under cash flow hedge accounting, until settlement the swap contracts are carried at fair value and, to the extent they are an effective hedge, any unrealized gains or losses are recorded in other comprehensive income (loss). Any ineffective portion of the unrealized gains or losses is immediately recorded into earnings. Upon settlement, any realized gain or loss that has been recorded in other comprehensive income (loss) is amortized into earnings over the term of the newly-issued fixed-rate debt. On October 17, 2014, the Company sold $500 million of 2025 Notes as described under "Senior Notes" above, and paid approximately $45 million to settle the forward-starting interest rate swap contracts. As of October 17, 2014, the Company recorded $0.5 million of pre-tax loss immediately into earnings to reflect ineffectiveness resulting from the issuance of the 2025 Notes slightly earlier than forecast. As of September 30, 2017 , the Company expects to amortize $4.4 million of pre-tax losses, that were reported in accumulated other comprehensive loss, into interest on borrowings on the Consolidated Statements of Income within the next 12 months. The following table summarizes pre-tax losses resulting from changes in the fair value of the forward-starting interest rate swaps for the fiscal years indicated (dollars in millions): Amount of Loss Recognized in Other Comprehensive Income (Loss) (Effective Portion) 2017 2016 2015 Forward-starting interest rate swaps $ — $ — $ (15 ) Balance Sheet Impact of Hedging Instruments — The following table summarizes the classification and the fair value of outstanding derivatives designated as hedging instruments on the Consolidated Balance Sheets (dollars in millions): September 30, 2017 2016 Pay-variable interest rate swaps designated as fair value hedges: Other assets $ 26 $ 79 Accounts payable and other liabilities $ (3 ) $ — The interest rate swaps are subject to counterparty credit risk. Credit risk is managed by limiting activity to approved counterparties that meet a minimum credit rating threshold, by entering into credit support agreements, or by utilizing approved central clearing counterparties registered with the CFTC. The interest rate swaps require daily collateral coverage, in the form of cash or U.S. Treasury securities, for the aggregate fair value of the interest rate swaps (including accrued interest). As of September 30, 2017 and 2016 , the pay-variable interest rate swap counterparties had pledged $40 million and $93 million of collateral, respectively, to the Company in the form of cash. A liability for collateral pledged to the Company in the form of cash is recorded in accounts payable and other liabilities on the Consolidated Balance Sheets. As of September 30, 2017, the Company had pledged $1 million of collateral to the pay-variable interest rate swap counterparties in the form of cash. An asset for collateral pledged to the swap counterparties in the form of cash is recorded in other receivables on the Consolidated Balance Sheets. TD Ameritrade Holding Corporation Credit Agreement — On April 21, 2017 , the Parent entered into a credit agreement consisting of a senior unsecured revolving credit facility in the aggregate principal amount of $300 million (the "Parent Revolving Facility"). The Parent Revolving Facility replaced the Parent's prior $300 million unsecured revolving credit facility, which was scheduled to expire on June 11, 2019 . The maturity date of the Parent Revolving Facility is April 21, 2022 . The applicable interest rate under the Parent Revolving Facility is calculated as a per annum rate equal to, at the option of the Parent, (a) LIBOR plus an interest rate margin ("Parent Eurodollar loans") or (b) (i) the highest of (x) the prime rate, (y) the federal funds effective rate (or, if the federal funds effective rate is unavailable, the overnight bank funding rate) plus 0.50% or (z) the eurodollar rate assuming a one-month interest period plus 1.00% , plus (ii) an interest rate margin ("ABR loans"). The interest rate margin ranges from 0.875% to 1.50% for Parent Eurodollar loans and from 0% to 0.50% for ABR loans, determined by reference to the Company's public debt ratings. The Parent is obligated to pay a commitment fee ranging from 0.08% to 0.20% on any unused amount of the Parent Revolving Facility, determined by reference to the Company's public debt ratings. As of September 30, 2017 , the interest rate margin would have been 1.125% for Parent Eurodollar loans and 0.125% for ABR loans, and the commitment fee was 0.125% , each determined by reference to the Company's public debt ratings. There were no borrowings outstanding under the Parent Revolving Facility and the Parent's prior unsecured revolving credit facility as of September 30, 2017 and 2016 , respectively. The obligations under the Parent Revolving Facility are not guaranteed by any subsidiary of Parent. Prior to the termination of the Parent's prior revolving credit facility, TD Ameritrade Online Holdings Corp. ("TDAOH"), a wholly-owned subsidiary of the Company, guaranteed the Parent's obligations under the Parent's prior revolving credit facility and its 2019 Notes. Upon termination of the Parent's prior revolving credit facility on April 21, 2017 , TDAOH's guarantee of the 2019 Notes was also terminated. The Parent Revolving Facility contains negative covenants that limit or restrict, subject to certain exceptions, the incurrence of liens, indebtedness of subsidiaries, mergers, consolidations, transactions with affiliates, change in nature of business and the sale of all or substantially all of the assets of the Company. The Parent is also required to maintain compliance with a maximum consolidated leverage ratio covenant and a minimum consolidated interest coverage ratio covenant, and the Company's broker-dealer and FCM/FDM subsidiaries are required to maintain compliance with a minimum regulatory net capital covenant. The Company was in compliance with all covenants under the Parent Revolving Facility as of September 30, 2017 . TD Ameritrade Clearing, Inc. Credit Agreement — On April 21, 2017 , TD Ameritrade Clearing, Inc. ("TDAC"), a clearing broker-dealer subsidiary of the Company, entered into a credit agreement consisting of a senior unsecured revolving credit facility in the aggregate principal amount of $600 million (the "TDAC Revolving Facility"). The TDAC Revolving Facility replaced TDAC's prior $300 million unsecured revolving credit facility, which was scheduled to expire on June 11, 2019 . The maturity date of the TDAC Revolving Facility is April 21, 2022 . The applicable interest rate under the TDAC Revolving Facility is calculated as a per annum rate equal to, at the option of TDAC, (a) LIBOR plus an interest rate margin ("TDAC Eurodollar loans") or (b) the federal funds effective rate plus an interest rate margin ("Federal Funds Rate loans"). The interest rate margin ranges from 0.75% to 1.25% for both TDAC Eurodollar loans and Federal Funds Rate loans, determined by reference to the Company's public debt ratings. TDAC is obligated to pay a commitment fee ranging from 0.07% to 0.175% on any unused amount of the TDAC Revolving Facility, determined by reference to the Company's public debt ratings. As of September 30, 2017 , the interest rate margin would have been 1.00% for both TDAC Eurodollar loans and Federal Funds Rate loans, and the commitment fee was 0.10% , each determined by reference to the Company's public debt ratings. There were no borrowings outstanding under the TDAC Revolving Facility and TDAC's prior unsecured revolving credit facility as of September 30, 2017 and 2016 , respectively. The TDAC Revolving Facility contains negative covenants that limit or restrict, subject to certain exceptions, the incurrence of liens, indebtedness of TDAC, mergers, consolidations, change in nature of business and the sale of all or substantially all of the assets of TDAC. TDAC is also required to maintain minimum tangible net worth and is required to maintain compliance with minimum regulatory net capital requirements. TDAC was in compliance with all covenants under the TDAC Revolving Facility as of September 30, 2017 . Intercompany Credit Agreements — The Parent has entered into credit agreements with each of its primary broker-dealer and FCM/FDM subsidiaries as described below. The amended and restated intercompany credit agreement with TDAC will terminate on March 1, 2022 . Under this agreement, TDAC may borrow up to $400 million in cash or securities from the Parent under a committed facility. In addition, the Parent is permitted, but under no obligation, to make loans of up to $300 million in cash or securities to TDAC under an uncommitted facility. Loans under both the committed and uncommitted facilities bear interest at the same rate as borrowings under the TDAC Revolving Facility and must be repaid with interest on or before the termination date. The amended and restated intercompany credit agreement with TD Ameritrade, Inc., the Company's introducing broker-dealer subsidiary, will terminate on March 1, 2022 . Under this agreement, the Parent is permitted, but under no obligation, to make loans of up to $300 million in cash or securities to TD Ameritrade, Inc. under an uncommitted facility. Loans under the uncommitted facility bear interest at the same rate as borrowings under the TDAC Revolving Facility and must be repaid with interest on or before the termination date. The intercompany agreement with Scottrade, Inc., a clearing broker-dealer subsidiary of the Company, was established on September 18, 2017 and will terminate on or before March 1, 2022 . Under this agreement, Scottrade, Inc. may borrow up to $300 million in cash or securities from the Parent under a committed facility. In addition, the Parent is permitted, but under no obligation, to make loans of up to $300 million in cash or securities to Scottrade, Inc. under an uncommitted facility. Loans under both the committed and uncommitted facilities bear interest at the same rate as borrowings under the Parent Revolving Facility and must be repaid with interest on or before the termination date. The amended and restated intercompany credit agreement with TD Ameritrade Futures & Forex LLC ("TDAFF"), the Company's FCM and FDM subsidiary, has an initial term of five years, ending on August 11, 2021 , and will automatically renew for an additional five -year term, unless either party provides notice to the other of its intent to terminate not less than 30 days before the end of the then current term. Under this agreement, TDAFF may borrow from the Parent, under a committed facility, up to 75% of the sum of 1) TDAFF's "residual interest target" as determined by TDAFF in accordance with applicable rules and regulations and 2) TDAFF's total retail forex obligation excess represented solely by TDAFF's deposit. As of September 30, 2017 and 2016 , the loan commitment amount was $22.5 million . Loans under the committed facility bear interest at the same rate as borrowings under the TDAC Revolving Facility and must be repaid with interest on or before the termination date. There were no borrowings outstanding under any of the intercompany credit agreements as of September 30, 2017 and 2016 . |
Income Taxes
Income Taxes | 12 Months Ended |
Sep. 30, 2017 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Provision for income taxes is comprised of the following for the fiscal years indicated (dollars in millions): 2017 2016 2015 Current expense (benefit): Federal $ 484 $ 435 $ 470 State 49 (4 ) 28 533 431 498 Deferred benefit: Federal (11 ) (5 ) (22 ) State — (3 ) (1 ) (11 ) (8 ) (23 ) Provision for income taxes $ 522 $ 423 $ 475 A reconciliation of the federal statutory tax rate to the effective tax rate applicable to pre-tax income follows for the fiscal years indicated: 2017 2016 2015 Federal statutory rate 35.0 % 35.0 % 35.0 % State taxes, net of federal tax effect 2.8 2.8 3.0 Adjustments to estimated state income taxes — (0.2 ) 0.1 Federal incentives (0.3 ) (1.4 ) — Interest recorded (reversed) on unrecognized tax benefits, net 0.2 (1.1 ) (0.1 ) Reversal of accruals for unrecognized tax benefits (0.4 ) (1.8 ) (1.1 ) Other 0.1 0.1 — 37.4 % 33.4 % 36.9 % The Company's effective income tax rate for fiscal year 2017 was 37.4% , compared to 33.4% and 36.9% for fiscal years 2016 and 2015 , respectively. The provision for income taxes for fiscal year 2017 included $8 million of net favorable resolutions of state income tax matters and $4 million of favorable tax benefits for federal incentives. These items had a net favorable impact on the Company's earnings for fiscal year 2017 of approximately two cents per share. The provision for income taxes for fiscal year 2016 was impacted by $39 million of net favorable adjustments to uncertain tax positions and related deferred income tax assets, which included a favorable $33 million tax liability remeasurement related to a state court decision. The provision was also impacted by an $18 million favorable tax benefit claimed during fiscal year 2016 for federal deductions and tax credits related to calendar tax year 2012 through September 30, 2016 and $5 million of net favorable deferred income tax adjustments due to the remeasurement of deferred tax assets and liabilities and the cumulative impact of the decline in the state tax rate. These items had a net favorable impact on the Company's earnings for fiscal year 2016 of approximately twelve cents per share. The provision for income taxes for fiscal year 2015 included $22 million of favorable resolutions of state income tax matters. This favorably impacted the Company's earnings for fiscal year 2015 by approximately four cents per share. Deferred tax assets (liabilities) are comprised of the following (dollars in millions): September 30, 2017 2016 Deferred tax assets: Accrued and other liabilities $ 131 $ 62 Stock-based compensation 28 36 Unrecognized loss on cash flow hedging instruments 15 13 Allowance for doubtful accounts 6 5 Intangible assets, state tax benefit 5 7 Operating loss carryforwards 1 3 Gross deferred tax assets 186 126 Less: Valuation allowance (1 ) (2 ) Net deferred tax assets 185 124 Deferred tax liabilities: Acquired intangible assets (331 ) (364 ) Property and equipment (35 ) (36 ) Prepaid expenses (11 ) (5 ) Other deferred tax liabilities (1 ) — Total deferred tax liabilities (378 ) (405 ) Net deferred tax liabilities $ (193 ) $ (281 ) At September 30, 2017 , subsidiaries of the Company have approximately $17 million of separate state operating loss carryforwards. These carryforwards expire between fiscal 2021 and 2031 . Because the realization of the tax benefit from state loss carryforwards is dependent on certain subsidiaries generating sufficient state taxable income in future periods, as well as annual limitations on future utilization, the Company has provided a valuation allowance against the computed benefit in order to reflect the tax benefit expected to be realized. The $1 million decrease in the valuation allowance from September 30, 2016 to September 30, 2017 was primarily due to expiration of certain state net operating loss carryforwards during fiscal 2017 . A reconciliation of the activity related to unrecognized tax benefits follows for the fiscal years indicated (dollars in millions): 2017 2016 2015 Beginning balance $ 142 $ 154 $ 165 Additions based on tax positions related to the current year 28 30 16 Additions for tax positions of prior years — 20 5 Reductions for tax positions of prior years (10 ) (33 ) (4 ) Reductions due to settlements with taxing authorities (1 ) (21 ) (21 ) Reductions due to lapsed statute of limitations (7 ) (8 ) (7 ) Ending balance $ 152 $ 142 $ 154 The balance of unrecognized tax benefits as of September 30, 2017 was $152 million ( $108 million net of the federal benefit on state matters), all of which, if recognized, would favorably affect the effective income tax rate in any future periods. The balance of unrecognized tax benefits as of September 30, 2016 was $142 million ( $100 million net of the federal benefit on state matters), all of which, if recognized, would favorably affect the effective income tax rate in any future periods. The Company's income tax returns are subject to review and examination by federal, state and local taxing authorities. The federal returns for 2012 through 2016 remain open under the statute of limitations. The years open to examination by state and local government authorities vary by jurisdiction, but the statute of limitations is generally three to four years from the date the tax return is filed. It is reasonably possible that the gross unrecognized tax benefits as of September 30, 2017 could decrease by up to $44 million ( $35 million net of the federal benefit on state matters) within the next twelve months as a result of settlements of certain examinations or expiration of the statute of limitations with respect to other tax filings. The Company recognized $2 million of interest and penalties expense (net of the federal benefit) on the Consolidated Statement of Income for fiscal year 2017, primarily due to the accrual for unrecognized tax benefits. The Company recognized $17 million and $2 million of net benefits for interest and penalties (net of the federal income tax effect) for fiscal years 2016 and 2015, respectively, primarily due to favorable resolutions and remeasurement of uncertain tax positions. As of September 30, 2017 and 2016 , accrued interest and penalties related to unrecognized tax benefits was $26 million and $23 million , respectively. |
Capital Requirements
Capital Requirements | 12 Months Ended |
Sep. 30, 2017 | |
Regulatory Capital Requirements [Abstract] | |
Capital Requirements | Capital Requirements The Company's broker-dealer subsidiaries are subject to the SEC Uniform Net Capital Rule (Rule 15c3-1 under the Exchange Act), administered by the SEC and FINRA, which requires the maintenance of minimum net capital, as defined. Net capital and the related net capital requirement may fluctuate on a daily basis. TDAC and Scottrade, Inc., the Company's clearing broker-dealer subsidiaries, and TD Ameritrade, Inc., an introducing broker-dealer subsidiary of the Company, compute net capital under the alternative method as permitted by Rule 15c3-1. TDAC is required to maintain minimum net capital of the greater of $1.5 million , which is based on the type of business conducted by the broker-dealer, or 2% of aggregate debit balances arising from client transactions. TD Ameritrade, Inc. and Scottrade Inc. are required to maintain minimum net capital of the greater of $250,000 or 2% of aggregate debit balances. In addition, under the alternative method, a broker-dealer may not repay any subordinated borrowings, pay cash dividends or make any unsecured advances or loans to its parent company or employees if such payment would result in net capital of less than (a) 5% of aggregate debit balances or (b) 120% of its minimum dollar requirement. TDAFF, the Company's FCM and FDM subsidiary registered with the CFTC, is subject to CFTC Regulations 1.17 and 5.7 under the Commodity Exchange Act, administered by the CFTC and the NFA. As an FCM, TDAFF is required to maintain minimum adjusted net capital under CFTC Regulation 1.17 of the greater of (a) $1.0 million or (b) its futures risk-based capital requirement, equal to 8% of the total risk margin requirement for all futures positions carried by the FCM in client and nonclient accounts. As an FDM, TDAFF is also subject to the net capital requirements under CFTC Regulation 5.7, which requires TDAFF to maintain minimum adjusted net capital of the greater of (a) any amount required under CFTC Regulation 1.17 as described above or (b) $20.0 million plus 5% of all foreign exchange liabilities owed to forex clients in excess of $10.0 million . In addition, an FCM and FDM must provide notice to the CFTC if its adjusted net capital amounts to less than (a) 110% of its risk-based capital requirement under CFTC Regulation 1.17, (b) 150% of its $1.0 million minimum dollar requirement, or (c) 110% of $20.0 million plus 5% of all foreign exchange liabilities owed to forex clients in excess of $10.0 million . Net capital and net capital requirements for the Company's broker-dealer subsidiaries are summarized in the following tables (dollars in millions): TD Ameritrade Clearing, Inc. Date Net Capital Required Net Capital (2% of Aggregate Debit Balances) Net Capital in Excess of Required Net Capital Ratio of Net Capital to Aggregate Debit Balances September 30, 2017 $ 1,595 $ 340 $ 1,255 9.39 % September 30, 2016 $ 1,719 $ 288 $ 1,431 11.95 % TD Ameritrade, Inc. Date Net Capital Required Net Capital (Minimum Dollar Requirement) Net Capital in Excess of Required Net Capital September 30, 2017 $ 155 $ 0.25 $ 155 September 30, 2016 $ 139 $ 0.25 $ 138 Scottrade, Inc. Date Net Capital Required Net Capital (2% of Aggregate Debit Balances) Net Capital in Excess of Required Net Capital Ratio of Net Capital to Aggregate Debit Balances September 30, 2017 $ 348 $ 70 $ 278 9.99 % September 30, 2016 N/A N/A N/A N/A Adjusted net capital and adjusted net capital requirements for the Company's FCM and FDM subsidiary are summarized in the following table (dollars in millions): TD Ameritrade Futures & Forex LLC Date Adjusted Net Capital Required Adjusted Net Capital ($20 Million Plus 5% of All Foreign Exchange Liabilities Owed to Forex Clients in Excess of $10 Million) Adjusted Net Capital in Excess of Required Adjusted Net Capital September 30, 2017 $ 77 $ 22 $ 55 September 30, 2016 $ 117 $ 22 $ 95 The Company's non-depository trust company subsidiary, TD Ameritrade Trust Company ("TDATC"), is subject to capital requirements established by the State of Maine, which require TDATC to maintain minimum Tier 1 capital, as defined. TDATC's Tier 1 capital was $32 million and $37 million as of September 30, 2017 and 2016 , respectively, which exceeded the required Tier 1 capital by $13 million and $21 million , respectively. |
Stock-based Compensation
Stock-based Compensation | 12 Months Ended |
Sep. 30, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-based Compensation | Stock-based Compensation The Company has two stock incentive plans under which Company stock-based awards may be granted: the TD Ameritrade Holding Corporation Long-Term Incentive Plan (the "LTIP") and the 2006 Directors Incentive Plan (the "Directors Plan"). The LTIP authorizes the award of options to purchase common stock, common stock appreciation rights, restricted stock, restricted stock units, performance shares and performance units. Under the LTIP, 42,104,174 shares of the Company's common stock are reserved for issuance to eligible employees, consultants and non-employee directors. The Directors Plan authorizes the award of options to purchase common stock, common stock appreciation rights, restricted stock units and restricted stock. Under the Directors Plan, 1,830,793 shares of the Company's common stock are reserved for issuance to non-employee directors. Stock options, except for replacement options granted in connection with business combinations, are granted by the Company with an exercise price not less than the fair market value of the Company's common stock on the grant date. Stock options generally vest over a one - to four -year period and expire 10 years after the grant date. Restricted stock units ("RSUs") are awards that entitle the holder to receive shares of Company common stock following a vesting period. RSUs granted to employees generally vest after the completion of a three -year period. RSUs granted to non-employee directors generally vest over a one -year period. Performance-based restricted stock units ("PRSUs") are a form of RSUs in which the number of shares ultimately received depends on how the Company's total shareholder return ("TSR") compares to the total shareholder returns of companies in a selected performance peer group. PRSUs are subject to a three -year cliff vesting period. At the end of the performance period, the number of shares of common stock issued can range from 80% to 120% of target, depending on the Company's ranking in the performance peer group. Shares of common stock are issued following the end of the performance period. Stock-based compensation expense was $36 million for each of fiscal years 2017 and 2015 and $34 million for fiscal year 2016 . The related income tax benefits were $14 million for each of fiscal years 2017 and 2015 and $13 million for fiscal year 2016 . The following is a summary of option activity in the Company's stock incentive plans for the fiscal year ended September 30, 2017 : Number of Options (in thousands) Weighted Average Exercise Price Weighted Average Remaining Contractual Term (Years) Aggregate Intrinsic Value (in millions) Outstanding at beginning of year 1,784 $ 21.33 Exercised (1,264 ) $ 18.42 Expired (17 ) $ 40.33 Outstanding at end of year 503 $ 27.97 8.3 $ 10 Exercisable at end of year 126 $ 27.97 8.3 $ 3 The weighted-average grant-date fair value of options granted during fiscal year 2016 was $6.16 . No options were granted during fiscal years 2017 and 2015 . The total intrinsic value of options exercised during fiscal years 2017 , 2016 and 2015 was $26 million , $0.1 million and $11 million , respectively. As of September 30, 2017 , the total unrecognized compensation cost related to nonvested stock options awards was $2 million and was expected to be recognized over a weighted-average period of 2.3 years. The fair value of stock options granted during fiscal year 2016 was estimated using a Black-Scholes-Merton valuation model with the following inputs: Risk-free interest rate 1.73 % Expected dividend yield 2.4 % Expected volatility 27 % Expected option life (years) 6.5 The risk-free interest rate input was based on U.S. Treasury note yields with remaining terms comparable to the expected option life input used in the valuation model. The expected dividend yield was based on the annual dividend yield at the time of grant. The expected volatility was based on historical daily price changes of the Company's stock since July 2009. The expected option life was the average number of years that the Company estimated the options will be outstanding, based primarily on historical employee option exercise behavior. The Company measures the fair value of RSUs based upon the volume-weighted average market price of the underlying common stock as of the date of grant. The grant date fair value of PRSUs was determined based upon a Monte Carlo simulation model whereby the stock prices of the Company and the selected peer group companies were simulated using correlated Geometric Brownian motion paths in order to estimate the Company's total expected shareholder return rank within the peer group index and the corresponding percent of PRSUs that are estimated to be earned per the PRSU award agreement. RSUs and PRSUs are amortized over their applicable vesting period using the straight-line method, reduced by expected forfeitures. The following is a summary of RSU activity in the Company's stock incentive plans for the fiscal year ended September 30, 2017 : Number of Units (in thousands) Weighted Average Grant Date Fair Value Nonvested at beginning of year 3,506 $ 31.49 Granted 780 $ 40.66 Vested (1,693 ) $ 30.51 Forfeited (199 ) $ 35.78 Nonvested at end of year 2,394 $ 34.83 The weighted-average grant-date fair value of RSUs granted during fiscal year 2017, 2016 and 2015 was $40.66 , $27.97 and $34.34 , respectively. As of September 30, 2017 , there was $31 million of estimated unrecognized compensation cost related to nonvested RSUs, which was expected to be recognized over a weighted average period of 2.0 years. The total fair value of RSUs that vested during fiscal years 2017 , 2016 and 2015 was $70 million , $71 million and $59 million , respectively. The following is a summary of PRSU activity in the Company's stock incentive plans for the fiscal year ended September 30, 2017 : Number of Units (in thousands) Weighted Average Grant Date Fair Value Nonvested at beginning of year — $ — Granted 265 $ 39.48 Nonvested at end of year 265 $ 39.48 As of September 30, 2017 , there was $5 million of estimated unrecognized compensation cost related to nonvested PRSUs, which was expected to be recognized over a weighted average period of 2.2 years. No PRSUs were granted during fiscal years 2016 and 2015. The fair value of PRSUs granted during fiscal year 2017 was estimated using a Monte Carlo simulation model with the following inputs: Risk-free interest rate 1.34 % Expected dividend yield 0 % Expected volatility 27 % Expected term (years) 2.9 The risk-free interest rate input was based on U.S. Treasury note yields with remaining terms comparable to the expected term input used in the valuation model. The expected dividend yield was selected to be zero as the vesting condition is based on total shareholder return, which includes changes in price, plus reinvestment of dividends paid. The expected volatility was based on historical daily price changes for a period of time that corresponds with the expected term input used in the valuation model. The expected term input was based on the contractual remaining period of time until the award vests in accordance with the PRSU award agreement. Although the Company does not have a formal policy regarding issuance of shares for stock-based compensation, such shares are generally issued from treasury stock. The stockholders agreement entered into in connection with the acquisition of TD Waterhouse Group, Inc. requires the Company to repurchase its common stock from time to time to offset dilution resulting from stock option exercises and other stock awards subsequent to the acquisition. As of September 30, 2017 , the Company was not obligated to repurchase additional shares pursuant to the stockholders agreement. The Company cannot estimate the amount and timing of repurchases that may be required as a result of future stock issuances. |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Sep. 30, 2017 | |
Retirement Benefits [Abstract] | |
Employee Benefit Plans | Employee Benefit Plans The Company has a 401(k) and profit-sharing plan under which annual profit-sharing contributions are determined at the discretion of the board of directors. The Company also makes matching contributions pursuant to the plan document. Profit-sharing and matching contributions expense was $38 million , $35 million and $34 million for fiscal years 2017 , 2016 and 2015 , respectively. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Sep. 30, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Lease Commitments — The Company has various non-cancelable operating leases on facilities requiring annual payments as follows (dollars in millions): Fiscal Year Minimum Lease Payments Sublease Income Net Lease Commitments 2018 $ 90 $ (4 ) $ 86 2019 73 (3 ) 70 2020 59 (2 ) 57 2021 41 (3 ) 38 2022 31 (2 ) 29 Thereafter (to 2033) 121 — 121 Total $ 415 $ (14 ) $ 401 A majority of the leases for the Company's branch offices contain provisions for renewal at the Company's option. Rental expense, net of sublease income, was approximately $54 million , $51 million and $49 million for fiscal years 2017 , 2016 and 2015 , respectively. Legal and Regulatory Matters Order Routing Matters — Five putative class action complaints were filed between August and October 2014 regarding TD Ameritrade, Inc.'s routing of client orders and one putative class action was filed in December 2014 regarding Scottrade, Inc.'s routing of client orders. The cases against TD Ameritrade were filed in, or transferred to, the U.S. District Court for the District of Nebraska: Jay Zola et al. v. TD Ameritrade, Inc., et al. , Case No. 8:14CV288; Tyler Verdieck v. TD Ameritrade, Inc. , Case No. 8:14CV289; Bruce Lerner v. TD Ameritrade, Inc. , Case No. 8:14CV325; Michael Sarbacker v. TD Ameritrade Holding Corporation, et al. , Case No. 8:14CV341; and Gerald Klein v. TD Ameritrade Holding Corporation, et al. , Case No. 8:14CV396 . The case against Scottrade was transferred to the U.S. District Court for the Eastern District of Missouri: Nicholas Lewis v. Scottrade, Inc., Case No. 4:15CV01255. The complaints in Zola, Klein and Sarbacker allege that the defendants failed to provide clients with best execution and routed orders to the market venue that paid the most for its order flow. The complaints in Verdieck, Lerner and Lewis allege that the defendant routed its clients' non-marketable limit orders to the venue paying the highest rates of maker rebates, and that clients did not receive best execution on these kinds of orders. The complaints variously include claims of breach of contract, breach of fiduciary duty, breach of the duty of best execution, fraud, negligent misrepresentation, violation s of Section 10(b) and 20 of the Exchange Act and SEC Rule 10b-5, violation of Nebraska's Consumer Protection Act, violation of Nebraska's Uniform Deceptive Trade Practices Act, violation of the Missouri Merchandising Practices Act, aiding and abetting, unjust enrichment and declaratory judgment. The complaints seek various kinds of relief including damages, restitution, disgorgement, injunctive relief, equitable relief and other relief. The Company, including Scottrade, moved to dismiss the putative class action complaints. On March 23, 2016, the U.S. District Court in Nebraska entered an order dismissing all of the state law claims in the five actions against TD Ameritrade, denying the motion to dismiss the federal securities claims in the Klein case, and permitting the plaintiffs in the other four actions to amend their complaints to assert a federal securities claim. On August 29, 2016, the U.S. District Court in Missouri entered an order dismissing without prejudice all of the state law claims against Scottrade, Inc. None of the plaintiffs in the actions filed an amended complaint. The plaintiffs in the Zola , Sarbacker, Verdieck and Lewis cases filed appeals. The Court of Appeals, 8 th Circuit, has not yet ruled on any of the cases. The plaintiff in the Lerner case did not file an appeal and that case is considered closed. The Klein case is proceeding. The Company intends to vigorously defend against these lawsuits and is unable to predict the outcome or the timing of the ultimate resolution of these lawsuits, or the potential losses, if any, that may result. Certain regulatory authorities are conducting examinations and investigations regarding the routing of client orders. TD Ameritrade, Inc. and TDAC have received requests for documents and information from the regulatory authorities. TD Ameritrade, Inc. and TDAC are cooperating with the requests. Lawsuit regarding Scottrade Acquisition — On April 6, 2017, an alleged stockholder of the Company filed a purported stockholder derivative complaint regarding the acquisition of Scottrade by the Company and the acquisition of Scottrade Bank by TD. The suit filed in the Delaware Chancery Court is captioned Vero Beach Police Officers' Retirement Fund, derivatively on behalf of nominal defendant TD Ameritrade Holding Corp. v. Larry Bettino et al ., C.A. No. 2017-0264-JRS. The suit names as defendants TD and the members of the Company's board of directors. It also names the Company as a nominal defendant. The complaint alleges that the Scottrade acquisition and TD's acquisition of Scottrade Bank are unfair from the perspective of the Company because TD Bank, N.A. is acquiring Scottrade Bank for an alleged low price, which in turn will cause the Company to pay an alleged high price to acquire Scottrade. The complaint claims that the Company's directors and TD, as the Company's alleged controlling stockholder, breached their fiduciary duties to the Company and its stockholders. The complaint seeks a declaration that demand on the Company's board is excused as futile, corporate governance reforms, damages, interest and fees. On November 2, 2017, the defendants filed motions to dismiss. The Company intends to vigorously defend against this lawsuit and is unable to predict the outcome or the timing of the ultimate resolution of this lawsuit, or the potential losses, if any, that may result. Aequitas Securities Litigation — An amended putative class action complaint was filed in the U.S. District Court for the District of Oregon in Lawrence Ciuffitelli et al. v. Deloitte & Touche LLP, EisnerAmper LLP, Sidley Austin LLP, Tonkon Torp LLP, TD Ameritrade, Inc., and Integrity Bank & Trust, Case No. 3:16CV580, on May 19, 2016. A second amended putative class action complaint was filed on September 8, 2017, in which Duff & Phelps was added as a defendant. The putative class includes all persons who purchased securities of Aequitas Commercial Finance, LLC and its affiliates on or after June 9, 2010. Other groups of plaintiffs have filed four non-class action lawsuits in Oregon Circuit Court, Multnomah County, against these and other defendants: Walter Wurster, et al. v. Deloitte & Touche et al. , Case No. 16CV25920 (filed Aug. 11, 2016), Kenneth Pommier, et al. v. Deloitte & Touche et al., Case No. 16CV36439 (filed Nov. 3, 2016), Charles Ramsdell, et al. v. Deloitte & Touche et al., Case No. 16CV40659 (filed Dec. 2, 2016) and Charles Layton, et al. v. Deloitte & Touche et al., Case No. 17CV42915 (filed October 2, 2017). FINRA arbitrations are also pending against TD Ameritrade, Inc. The claims in these actions include allegations that the sales of Aequitas securities were unlawful, the defendants participated and materially aided in such sales in violation of the Oregon securities laws, and material misstatements and omissions were made. While the factual allegations differ in various respects among the cases, plaintiffs' allegations include assertions that: TD Ameritrade customers purchased more than $140 million of Aequitas securities; TD Ameritrade served as custodian for Aequitas securities; recommended and referred investors to financial advisors as part of its advisor referral program for the purpose of purchasing Aequitas securities; participated in marketing the securities; recommended the securities; provided assurances to investors about the safety of the securities; and developed a market for the securities. In the Ciuffitelli putative class action, plaintiffs allege that more than 1,500 investors were owed more than $600 million on the Aequitas securities they purchased. In that case and the other cases, collectively over 200 named plaintiffs allege a total of over $125 million in losses plus other damages. Of that amount, over 100 plaintiffs who were TD Ameritrade customers, allege approximately $35 million in losses plus other damages. In the Wurster and Pommier cases, TD Ameritrade filed a motion to compel arbitration as to the claims by those plaintiffs who were TD Ameritrade customers and the Court dismissed those claims. In those cases, plaintiffs have filed amended complaints and defendants have filed motions to dismiss. In the Ciuffitelli case, defendants have also moved to dismiss the pending complaint. Discovery has commenced. The Ramsdell case is stayed and the Layton case may similarly be stayed. These stays are expected to remain in place until the resolution of the motions to dismiss the Wurster and Pommier cases. The Company intends to vigorously defend against this litigation. The Company is unable to predict the outcome or the timing of the ultimate resolution of this litigation, or the potential losses, if any, that may result. Other Legal and Regulatory Matters — The Company is subject to a number of other lawsuits, arbitrations, claims and other legal proceedings in connection with its business. Some of these legal actions include claims for substantial or unspecified compensatory and/or punitive damages. In addition, in the normal course of business, the Company discusses matters with its regulators raised during regulatory examinations or otherwise subject to their inquiry. These matters could result in censures, fines, penalties or other sanctions. ASC 450, Loss Contingencies , governs the recognition and disclosure of loss contingencies, including potential losses from legal and regulatory matters. ASC 450 categorizes loss contingencies using three terms based on the likelihood of occurrence of events that result in a loss: "probable" means that "the future event or events are likely to occur;" "remote" means that "the chance of the future event or events occurring is slight;" and "reasonably possible" means that "the chance of the future event or events occurring is more than remote but less than likely." Under ASC 450, the Company accrues for losses that are considered both probable and reasonably estimable. The Company may incur losses in addition to the amounts accrued where the losses are greater than estimated by management, or for matters for which an unfavorable outcome is considered reasonably possible, but not probable. The Company estimates that the aggregate range of reasonably possible losses in excess of amounts accrued is from $0 to $65 million as of September 30, 2017 . This estimated aggregate range of reasonably possible losses is based upon currently available information for those legal and regulatory matters in which the Company is involved, taking into account the Company's best estimate of reasonably possible losses for those matters as to which an estimate can be made. For certain matters, the Company does not believe an estimate can currently be made, as some matters are in preliminary stages and some matters have no specific amounts claimed. The Company's estimate involves significant judgment, given the varying stages of the proceedings and the inherent uncertainty of predicting outcomes. The estimated range will change from time to time as the underlying matters, stages of proceedings and available information change. Actual losses may vary significantly from the current estimated range. The Company believes, based on its current knowledge and after consultation with counsel, that the ultimate disposition of these legal and regulatory matters, individually or in the aggregate, is not likely to have a material adverse effect on the financial condition or cash flows of the Company. However, in light of the uncertainties involved in such matters, the Company is unable to predict the outcome or the timing of the ultimate resolution of these matters, or the potential losses, fines, penalties or equitable relief, if any, that may result, and it is possible that the ultimate resolution of one or more of these matters may be material to the Company's results of operations for a particular reporting period. Income Taxes The Company's federal and state income tax returns are subject to examination by taxing authorities. Because the application of tax laws and regulations to many types of transactions is subject to varying interpretations, amounts reported in the consolidated financial statements could be significantly changed at a later date upon final determinations by taxing authorities. General Contingencies In the ordinary course of business, there are various contingencies that are not reflected in the consolidated financial statements. These include the Company's broker-dealer and FCM/FDM subsidiaries' client activities involving the execution, settlement and financing of various client securities, options, futures and foreign exchange transactions. These activities may expose the Company to credit risk in the event the clients are unable to fulfill their contractual obligations. The Company extends margin credit and leverage to its clients. In margin transactions, the Company extends credit to the client, subject to various regulatory and internal margin requirements, collateralized by cash and securities in the client's account. In connection with these activities, the Company also routes client orders for execution and clears client transactions involving the sale of securities not yet purchased ("short sales"). Such margin-related transactions may expose the Company to credit risk in the event a client's assets are not sufficient to fully cover losses that the client may incur. Leverage involves securing a large potential future obligation with a lesser amount of collateral. The risks associated with margin credit and leverage increase during periods of rapid market movements, or in cases where leverage or collateral is concentrated and market movements occur. In the event the client fails to satisfy its obligations, the Company has the authority to liquidate certain positions in the client's account at prevailing market prices in order to fulfill the client's obligations. However, during periods of rapid market movements, clients who utilize margin credit or leverage and who have collateralized their obligations with securities may find that the securities have a rapidly depreciating value and may not be sufficient to cover their obligations in the event of liquidation. The Company seeks to mitigate the risks associated with its client margin and leverage activities by requiring clients to maintain margin collateral in compliance with various regulatory and internal guidelines. The Company monitors required margin levels throughout each trading day and, pursuant to such guidelines, requires clients to deposit additional collateral, or to reduce positions, when necessary. The Company contracts with unaffiliated FCM, FDM and broker-dealer entities to clear and execute futures and foreign exchange transactions for its clients. This can result in concentrations of credit risk with one or more of these counterparties. This risk is partially mitigated by the counterparties' obligation to comply with rules and regulations governing FCMs, FDMs and broker-dealers in the United States. These rules generally require maintenance of net capital and segregation of client funds and securities. In addition, the Company manages this risk by requiring credit approvals for counterparties and by utilizing account funding and sweep arrangement agreements that generally specify that all client cash in excess of futures funding requirements be transferred back to the clients' securities brokerage account at the Company on a daily basis. The Company loans securities temporarily to other broker-dealers in connection with its broker-dealer business. The Company receives cash as collateral for the securities loaned. Increases in securities prices may cause the market 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, the Company may be exposed to the risk of acquiring the securities at prevailing market prices in order to satisfy its client obligations. The Company mitigates this risk by requiring credit approvals for counterparties, by monitoring the market value of securities loaned on a daily basis and requiring additional cash as collateral when necessary, and by participating in a risk-sharing program offered through the Options Clearing Corporation ("OCC"). The Company borrows securities temporarily from other broker-dealers in connection with its broker-dealer business. The Company deposits cash as collateral for the securities borrowed. Decreases in securities prices may cause the market value of the securities borrowed to fall below the amount of cash deposited as collateral. In the event the counterparty to these transactions does not return the cash deposited, the Company may be exposed to the risk of selling the securities at prevailing market prices. The Company mitigates this risk by requiring credit approvals for counterparties, by monitoring the collateral values on a daily basis and requiring collateral to be returned by the counterparties when necessary, and by participating in a risk-sharing program offered through the OCC. The Company transacts in reverse repurchase agreements (securities purchased under agreements to resell) in connection with its broker-dealer business. The Company's policy is to take possession or control of securities with a market value in excess of the principal amount loaned, plus accrued interest, in order to collateralize resale agreements. The Company monitors the market value of the underlying securities that collateralize the related receivable on resale agreements on a daily basis and may require additional collateral when deemed appropriate. The Company has accepted collateral in connection with client margin loans and securities borrowed. Under applicable agreements, the Company is generally permitted to repledge securities held as collateral and use them to enter into securities lending arrangements. The following table summarizes the fair values of client margin securities and stock borrowings that were available to the Company to utilize as collateral on various borrowings or for other purposes, and the amount of that collateral loaned or repledged by the Company (dollars in billions): September 30, 2017 2016 Client margin securities $ 23.8 $ 16.5 Stock borrowings 1.2 1.1 Total collateral available $ 25.0 $ 17.6 Collateral loaned $ 2.4 $ 2.0 Collateral repledged 4.1 2.7 Total collateral loaned or repledged $ 6.5 $ 4.7 The Company is subject to cash deposit and collateral requirements with clearinghouses based on its clients' trading activity. The following table summarizes cash deposited with and securities pledged to clearinghouses by the Company (dollars in millions): September 30, Assets Balance Sheet Classification 2017 2016 Cash Receivable from brokers, dealers and clearing organizations $ 151 $ 116 U.S. government debt securities Securities owned, at fair value 398 220 Total $ 549 $ 336 The Company utilizes securities sold under agreements to repurchase (repurchase agreements) to finance its short-term liquidity and capital needs. Under these agreements, the Company receives cash from the counterparties and provides U.S. Treasury securities as collateral, allowing the counterparties the right to sell or repledge the collateral. These agreements expose the Company to credit losses in the event the counterparties cannot meet their obligations. The Company mitigates this risk by requiring credit approvals for counterparties, by monitoring the market value of pledged securities owned on a daily basis and requiring the counterparties to return cash or excess collateral pledged when necessary. Guarantees The Company is a member of and provides guarantees to securities clearinghouses and exchanges in connection with client trading activities. Under related agreements, the Company is generally required to guarantee the performance of other members. Under these agreements, if a member becomes unable to satisfy its obligations to the clearinghouse, other members would be required to meet shortfalls. The Company's liability under these arrangements is not quantifiable and could exceed the cash and securities it has posted to the clearinghouse as collateral. However, the potential for the Company to be required to make payments under these agreements is considered remote. Accordingly, no contingent liability is carried on the Consolidated Balance Sheets for these guarantees. The Company clears its clients' futures transactions on an omnibus account basis through unaffiliated clearing firms. The Company also contracts with an external provider to facilitate foreign exchange trading for its clients. The Company has agreed to indemnify these unaffiliated clearing firms and the external provider for any loss that they may incur for the client transactions introduced to them by the Company. See " Insured Deposit Account Agreement " in Note 21 for a description of the guarantees included in that agreement. |
Fair Value Disclosures
Fair Value Disclosures | 12 Months Ended |
Sep. 30, 2017 | |
Fair Value Disclosures [Abstract] | |
Fair Value Disclosures | Fair Value Disclosures Fair Value Measurement — Definition and Hierarchy ASC 820-10, Fair Value Measurement , defines fair value as the price that would be received to sell an asset or paid to transfer a liability (an exit price) in an orderly transaction between market participants at the measurement date. ASC 820-10 establishes a hierarchy for inputs used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that the most observable inputs be used when available. Observable inputs reflect the assumptions market participants would use in pricing the asset or liability, developed based on market data obtained from sources independent of the Company. Unobservable inputs reflect the Company's own assumptions about the assumptions market participants would use in pricing the asset or liability, developed based on the best information available in the circumstances. The fair value hierarchy prioritizes the inputs to valuation techniques used to measure fair value into three broad levels, as follows: • Level 1 — Quoted prices (unadjusted) in active markets for identical assets or liabilities that the Company has the ability to access. This category includes active exchange-traded funds, money market mutual funds, mutual funds and equity securities. • Level 2 — Inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. Such inputs include quoted prices in markets that are not active, quoted prices for similar assets and liabilities in active and inactive markets, inputs other than quoted prices that are observable for the asset or liability and inputs that are derived principally from or corroborated by observable market data by correlation or other means. This category includes most debt securities, U.S. government agency mortgage-backed securities, which consist of Ginnie Mae Home Equity Conversion Mortgages, and other interest-sensitive financial instruments. • Level 3 — Unobservable inputs for the asset or liability, where there is little, if any, observable market activity or data for the asset or liability. The following tables present the Company's fair value hierarchy for assets and liabilities measured at fair value on a recurring basis as of September 30, 2017 and 2016 (dollars in millions): As of September 30, 2017 Level 1 Level 2 Level 3 Fair Value Assets: Cash equivalents: Money market mutual funds $ 1,081 $ — $ — $ 1,081 Investments segregated for regulatory purposes: U.S. government debt securities — 4,094 — 4,094 U.S. government agency mortgage-backed securities — 1,486 — 1,486 Subtotal - Investments segregated for regulatory purposes — 5,580 — 5,580 Securities owned: U.S. government debt securities — 498 — 498 Other 1 4 — 5 Subtotal - Securities owned 1 502 — 503 Investments available-for-sale: U.S. government debt securities — 746 — 746 Other assets: Pay-variable interest rate swaps (1) — 26 — 26 U.S. government debt securities — 1 — 1 Auction rate securities — — 1 1 Subtotal - Other assets — 27 1 28 Total assets at fair value $ 1,082 $ 6,855 $ 1 $ 7,938 Liabilities: Accounts payable and other liabilities: Pay-variable interest rate swaps (1) $ — $ 3 $ — $ 3 (1) See " Fair Value Hedging " in Note 10 for details. As of September 30, 2016 Level 1 Level 2 Level 3 Fair Value Assets: Cash equivalents: Money market mutual funds $ 1,658 $ — $ — $ 1,658 Investments segregated for regulatory purposes: U.S. government debt securities — 6,598 — 6,598 Securities owned: U.S. government debt securities — 320 — 320 Other 6 5 — 11 Subtotal - Securities owned 6 325 — 331 Investments available-for-sale: U.S. government debt securities — 757 — 757 Other assets: Pay-variable interest rate swaps (1) — 79 — 79 U.S. government debt securities — 4 — 4 Auction rate securities — — 1 1 Subtotal - Other assets — 83 1 84 Total assets at fair value $ 1,664 $ 7,763 $ 1 $ 9,428 Liabilities: Accounts payable and other liabilities: Securities sold, not yet purchased: Equity securities $ 6 $ — $ — $ 6 (1) See " Fair Value Hedging " in Note 10 for details. There were no transfers between any levels of the fair value hierarchy during the periods covered by this report. Valuation Techniques In general, and where applicable, the Company uses quoted prices in active markets for identical assets or liabilities to determine fair value. This pricing methodology applies to the Company's Level 1 assets and liabilities. If quoted prices in active markets for identical assets and liabilities are not available to determine fair value, then the Company uses quoted prices for similar assets and liabilities or inputs other than the quoted prices that are observable, either directly or indirectly. This pricing methodology applies to the Company's Level 2 assets and liabilities. Level 2 Measurements: Debt securities — Fair values for debt securities are based on prices obtained from an independent pricing vendor. The primary inputs to the valuation include quoted prices for similar assets in active markets, quoted prices for identical or similar assets in markets that are not active, contractual cash flows, benchmark yields and credit spreads. The Company validates the vendor pricing by periodically comparing it to pricing from another independent pricing service. The Company has not adjusted prices obtained from the independent pricing vendor for any periods presented in the consolidated financial statements because no significant pricing differences have been observed. U.S. government agency mortgage-backed securities – Fair values for mortgage-backed securities are based on prices obtained from an independent pricing vendor. The primary inputs to the valuation include quoted prices for similar assets in active markets and in markets that are not active, a market-derived prepayment curve, weighted average yields on the underlying collateral and spreads to benchmark indices. The Company validates the vendor pricing by periodically comparing it to pricing from two other independent sources. The Company has not adjusted prices obtained from the independent pricing vendor for any periods presented in the consolidated financial statements because no significant pricing differences have been observed. Interest rate swaps — These derivatives are valued by the Company using a valuation model provided by a third-party service that incorporates interest rate yield curves, which are observable for substantially the full term of the contract. The valuation model is widely accepted in the financial services industry and does not involve significant judgment because most of the inputs are observable in the marketplace. Credit risk is not an input to the valuation because in each case the Company or counterparty has possession of collateral, in the form of cash or U.S. Treasury securities, in amounts equal to or exceeding the fair value of the interest rate swaps. The Company validates the third-party service valuations by comparing them to valuation models provided by the swap counterparties. Level 3 Measurements: The Company has no material assets or liabilities classified as Level 3 of the fair value hierarchy. Fair Value of Financial Instruments Not Recorded at Fair Value Receivable from/payable to brokers, dealers and clearing organizations, receivable from/payable to clients, receivable from/payable to affiliates, other receivables and accounts payable and other liabilities are short-term in nature and accordingly are carried at amounts that approximate fair value. Receivable from/payable to brokers, dealers and clearing organizations, receivable from/payable to clients, receivable from/payable to affiliates, other receivables and accounts payable and other liabilities are recorded at or near their respective transaction prices and historically have been settled or converted to cash at approximately that value (categorized as Level 2 of the fair value hierarchy). Cash and investments segregated and on deposit for regulatory purposes and other assets include reverse repurchase agreements (securities purchased under agreements to resell). Reverse repurchase agreements are treated as collateralized financing transactions and are carried at amounts at which the securities will subsequently be resold, plus accrued interest. The Company's reverse repurchase agreements generally have a maturity of seven days and are collateralized by securities in amounts exceeding the carrying value of the resale agreements. Accordingly, the carrying value of reverse repurchase agreements approximates fair value (categorized as Level 2 of the fair value hierarchy). Cash and investments segregated and on deposit for regulatory purposes also includes cash held in demand deposit accounts and on deposit with futures commission merchants, for which the carrying values approximate the fair value (categorized as Level 1 of the fair value hierarchy). See Note 4 for a summary of cash and investments segregated and on deposit for regulatory purposes. Other assets includes reverse repurchase agreements of $65 million as of September 30, 2017. Securities sold under agreements to repurchase (repurchase agreements) — Under repurchase agreements the Company receives cash from the counterparties and provides U.S. Treasury securities as collateral. The obligations to repurchase securities sold are reflected as a liability on the Consolidated Balance Sheets. Repurchase agreements are treated as collateralized financing transactions and are carried at amounts at which the securities will subsequently be repurchased, plus accrued interest. The Company's repurchase agreements are short-term in nature and accordingly the carrying value is a reasonable estimate of fair value (categorized as Level 2 of the fair value hierarchy). Long-term debt — As of September 30, 2017 , the Company's Senior Notes had an aggregate estimated fair value, based on quoted market prices (categorized as Level 1 of the fair value hierarchy), of approximately $2.63 billion , compared to the aggregate carrying value of the Senior Notes on the Consolidated Balance Sheet of $2.56 billion . As of September 30, 2016 , the Company's Senior Notes had an aggregate estimated fair value, based on quoted market prices, of approximately $1.87 billion , compared to the aggregate carrying value of the Senior Notes on the Consolidated Balance Sheet of $1.82 billion . |
Offsetting Assets and Liabiliti
Offsetting Assets and Liabilities | 12 Months Ended |
Sep. 30, 2017 | |
Offsetting [Abstract] | |
Offsetting Assets and Liabilities | Offsetting Assets and Liabilities Substantially all of the Company's securities sold under agreements to repurchase (repurchase agreements), reverse repurchase agreements, securities borrowing and securities lending activity and derivative financial instruments are transacted under master agreements that may allow for net settlement in the ordinary course of business, as well as offsetting of all contracts with a given counterparty in the event of default by one of the parties. However, for financial statement purposes, the Company does not net balances related to these financial instruments. The following tables present information about the potential effect of rights of setoff associated with the Company's recognized assets and liabilities as of September 30, 2017 and 2016 (dollars in millions): September 30, 2017 Gross Amounts Not Offset in the Consolidated Balance Sheet Gross Amounts of Recognized Assets and Liabilities Gross Amounts Offset in the Consolidated Balance Sheet Net Amounts Presented in the Consolidated Balance Sheet Financial Instruments (5) Collateral Received or Pledged (Including Cash) (6) Net Amount (7) Assets: Investments segregated for regulatory purposes: Reverse repurchase agreements $ 1,004 $ — $ 1,004 $ — $ (1,004 ) $ — Receivable from brokers, dealers and clearing organizations: Deposits paid for securities borrowed (1) 1,154 — 1,154 (110 ) (1,023 ) 21 Other assets: Pay-variable interest rate swaps 26 — 26 — (26 ) — Reverse repurchase agreements 65 — 65 — (65 ) — Total other assets 91 — 91 — (91 ) — Total $ 2,249 $ — $ 2,249 $ (110 ) $ (2,118 ) $ 21 Liabilities: Payable to brokers, dealers and clearing organizations: Deposits received for securities loaned (2)(3) $ 2,449 $ — $ 2,449 $ (112 ) $ (2,113 ) $ 224 Securities sold under agreements to repurchase (4) 97 — 97 2 (99 ) — Accounts payable and other liabilities: Pay-variable interest rate swaps 3 — 3 — (1 ) 2 Total $ 2,549 $ — $ 2,549 $ (110 ) $ (2,213 ) $ 226 September 30, 2016 Gross Amounts Not Offset in the Consolidated Balance Sheet Gross Amounts of Recognized Assets and Liabilities Gross Amounts Offset in the Consolidated Balance Sheet Net Amounts Presented in the Consolidated Balance Sheet Financial Instruments (5) Collateral Received or Pledged (Including Cash) (6) Net Amount (7) Assets: Investments segregated for regulatory purposes: Reverse repurchase agreements $ 1,288 $ — $ 1,288 $ — $ (1,288 ) $ — Receivable from brokers, dealers and clearing organizations: Deposits paid for securities borrowed (1) 1,051 — 1,051 (172 ) (862 ) 17 Other assets: Pay-variable interest rate swaps 79 — 79 — (79 ) — Total $ 2,418 $ — $ 2,418 $ (172 ) $ (2,229 ) $ 17 Liabilities: Payable to brokers, dealers and clearing organizations: Deposits received for securities loaned (2)(3) $ 1,990 $ — $ 1,990 $ (172 ) $ (1,638 ) $ 180 (1) Included in the gross amounts of deposits paid for securities borrowed is $675 million and $590 million as of September 30, 2017 and 2016 , respectively, transacted through a risk-sharing program with the OCC, which guarantees the return of cash to the Company. See " General Contingencies " in Note 15 for a discussion of the potential risks associated with securities borrowing transactions and how the Company mitigates those risks. (2) Included in the gross amounts of deposits received for securities loaned is $1.65 billion and $1.07 billion as of September 30, 2017 and 2016 , respectively, transacted through a risk-sharing program with the OCC, which guarantees the return of securities to the Company. See " General Contingencies " in Note 15 for a discussion of the potential risks associated with securities lending transactions and how the Company mitigates those risks. (3) Substantially all of the Company's securities lending transactions have a continuous contractual term and, upon notice by either party, may be terminated within two business days. The following table summarizes the Company's gross liability for securities lending transactions by the class of securities loaned (dollars in millions): September 30, 2017 2016 Deposits received for securities loaned: Equity securities $ 2,109 $ 1,683 Exchange-traded funds 230 216 Closed-end funds 66 73 Other 44 18 Total $ 2,449 $ 1,990 (4) The collateral pledged includes available-for-sale U.S. government debt securities at fair value. All of the Company's repurchase agreements have a remaining contractual maturity of less than one year and, upon default by either party, may be terminated at the option of the non-defaulting party. See " General Contingencies " in Note 15 for a discussion of the potential risks associated with repurchase agreements and how the Company mitigates those risks. (5) Amounts represent recognized assets and liabilities that are subject to enforceable master agreements with rights of setoff. (6) Represents the fair value of collateral the Company had received or pledged under enforceable master agreements, limited for table presentation purposes to the net amount of the recognized assets due from or liabilities due to each counterparty. At September 30, 2017 and 2016 , the Company had received total collateral with a fair value of $2.26 billion and $2.44 billion , respectively, and pledged total collateral with a fair value of $2.32 billion and $1.81 billion , respectively. (7) Represents the amount for which, in the case of net recognized assets, the Company had not received collateral, and in the case of net recognized liabilities, the Company had not pledged collateral. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 12 Months Ended |
Sep. 30, 2017 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Accumulated Other Comprehensive Income (Loss) | Accumulated Other Comprehensive Loss The following table presents the net change in fair value recorded for each component of other comprehensive income (loss) before and after income tax for the fiscal years indicated (dollars in millions): 2017 2016 2015 Before Tax Tax Effect Net of Tax Before Tax Tax Effect Net of Tax Before Tax Tax Effect Net of Tax Investments available-for-sale: Unrealized loss $ (9 ) $ 4 $ (5 ) $ — $ — $ — $ — $ — $ — Cash flow hedging instruments: Net unrealized loss — — — — — — (15 ) 5 (10 ) Reclassification adjustment for portion of realized loss amortized to net income (1) 4 (2 ) 2 5 (2 ) 3 4 (1 ) 3 Other comprehensive income (loss) $ (5 ) $ 2 $ (3 ) $ 5 $ (2 ) $ 3 $ (11 ) $ 4 $ (7 ) (1) The before tax reclassification amounts and the related tax effects are included in interest on borrowings and provision for income taxes, respectively, on the Consolidated Statements of Income. The following table presents after-tax changes in each component of accumulated other comprehensive loss for the fiscal years indicated (dollars in millions): 2017 2016 2015 Investments available-for-sale: Beginning balance $ — $ — $ — Other comprehensive loss before reclassification (5 ) — — Current period change (5 ) — — Ending balance $ (5 ) $ — $ — Cash flow hedging instruments: Beginning balance $ (22 ) $ (25 ) $ (18 ) Other comprehensive loss before reclassification — — (10 ) Amount reclassified from accumulated other comprehensive loss 2 3 3 Current period change 2 3 (7 ) Ending balance $ (20 ) $ (22 ) $ (25 ) Total accumulated other comprehensive loss: Beginning balance $ (22 ) $ (25 ) $ (18 ) Other comprehensive loss before reclassification (5 ) — (10 ) Amount reclassified from accumulated other comprehensive loss 2 3 3 Current period change (3 ) 3 (7 ) Ending balance $ (25 ) $ (22 ) $ (25 ) |
Segment and Geographic Area Inf
Segment and Geographic Area Information | 12 Months Ended |
Sep. 30, 2017 | |
Segment Reporting [Abstract] | |
Segment and Geographic Area Information | Segment and Geographic Area Information The Company primarily operates in the securities brokerage industry and has no other reportable segments. Substantially all of the Company's revenues from external clients for the fiscal years ended September 30, 2017 , 2016 and 2015 were derived from its operations in the United States. |
Accelerated Stock Repurchase Ag
Accelerated Stock Repurchase Agreements | 12 Months Ended |
Sep. 30, 2017 | |
Accelerated Stock Repurchase [Abstract] | |
Accelerated Stock Repurchase Agreements | Accelerated Stock Repurchase Agreements On June 8, 2016 , the Company entered into an accelerated stock repurchase ("ASR") agreement with an investment bank counterparty. The Company paid $42.5 million to the counterparty and received an initial delivery of 1.1 million shares of its common stock on June 9, 2016 , representing 80% of the potential shares to be repurchased based on the closing stock price of $31.35 on June 8, 2016 . Settlement of the transaction occurred after the end of an averaging period, which began on June 9, 2016 and ended on September 15, 2016 . The total number of shares the Company purchased from the counterparty was based on the average of the daily volume-weighted average share prices of the Company's common stock during the averaging period, less a pre-determined discount. Upon settlement, the Company received an additional 0.3 million shares on September 20, 2016 . The Company ultimately repurchased a total of 1.4 million shares under the June 8, 2016 ASR agreement at a net weighted average price of $29.89 per share. On December 1, 2015 , the Company entered into an ASR agreement with an investment bank counterparty. The Company paid $45 million to the counterparty and received an initial delivery of 1.0 million shares of its common stock on December 2, 2015 , representing 80% of the potential shares to be repurchased based on the closing stock price of $36.92 on December 1, 2015 . Settlement of the transaction was to occur after the end of an averaging period, which would end no later than March 1, 2016 and was subject to early termination by the counterparty. The averaging period began on December 2, 2015 and ended on January 12, 2016 , at the election of the counterparty. The total number of shares the Company purchased from the counterparty was based on the average of the daily volume-weighted average share prices of the Company's common stock during the averaging period, less a pre-determined discount. Upon settlement, the Company received an additional 0.3 million shares on January 15, 2016 . The Company ultimately repurchased a total of 1.3 million shares under the December 1, 2015 ASR agreement at a net weighted average price of $33.98 per share. The Company treated the ASR agreements as forward contracts indexed to its own common stock. The forward contracts met all of the applicable criteria for equity classification, including the Company's right to settle in shares. The Company reflected the shares received from the investment bank counterparties as treasury stock as of the dates the shares were delivered, which resulted in reductions of the outstanding shares used to calculate the weighted average common shares outstanding for both basic and diluted earnings per share during the respective periods. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Sep. 30, 2017 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions Transactions with TD and its Affiliates As a result of the Company's acquisition of TD Waterhouse Group, Inc. during fiscal 2006, TD became an affiliate of the Company. TD owned approximately 41% of the Company's common stock as of September 30, 2017 . Pursuant to the stockholders agreement between TD and the Company, TD has the right to designate five of twelve members of the Company's board of directors. The Company transacts business and has extensive relationships with TD and certain of its affiliates. Transactions with TD and its affiliates are discussed and summarized below. Insured Deposit Account Agreement Under the IDA agreement, the TD Depository Institutions make available to clients of the Company FDIC-insured money market deposit accounts as either designated sweep vehicles or as non-sweep deposit accounts. The Company provides marketing, recordkeeping and support services for the TD Depository Institutions with respect to the money market deposit accounts. In exchange for providing these services, the TD Depository Institutions pay the Company an aggregate marketing fee based on the weighted average yield earned on the client IDA assets, less the actual interest paid to clients, a servicing fee to the TD Depository Institutions and the cost of FDIC insurance premiums. The current IDA agreement became effective as of January 1, 2013 and has an initial term expiring July 1, 2018 . It is automatically renewable for successive five -year terms, provided that it may be terminated by either the Company or the TD Depository Institutions by providing written notice of non-renewal at least two years prior to the initial expiration date or the expiration date of any subsequent renewal period. As of July 1, 2016, notice of non-renewal was not provided by either party, therefore the IDA agreement will automatically renew on July 1, 2018 . The fee earned on the IDA agreement is calculated based on two primary components: (a) the yield on fixed-rate "notional" investments, based on prevailing fixed rates for identical balances and maturities in the interest rate swap market (generally LIBOR-based) at the time such investments were added to the IDA portfolio (including any adjustments required to adjust the variable rate leg of such swaps to a one -month reset frequency and the overall swap payment frequency to monthly) and (b) the yield on floating-rate investments. As of September 30, 2017 , the IDA portfolio was comprised of approximately 73% fixed-rate notional investments and 27% floating-rate investments. The IDA agreement provides that the Company may designate amounts and maturity dates for the fixed-rate notional investments in the IDA portfolio, subject to certain limitations. For example, if the Company designates that $100 million of deposits be invested in 5 -year fixed-rate investments, and on the day such investment is confirmed by the TD Depository Institutions the prevailing fixed yield for the applicable 5 -year U.S. dollar LIBOR-based swaps is 1.45% , then the Company will earn a gross fixed yield of 1.45% on that portion of the portfolio (before any deductions for interest paid to clients, the servicing fee to the TD Depository Institutions and the cost of FDIC insurance premiums). In the event that (1) the federal funds effective rate is established at 0.75% or greater and (2) the rate on 5 -year U.S. dollar interest rate swaps is equal to or greater than 1.50% for 20 consecutive business days, then the rate earned by the Company on new fixed-rate notional investments will be reduced by 20% of the excess of the 5 -year U.S. dollar swap rate over 1.50% , up to a maximum of 0.10% . The yield on floating-rate investments is calculated daily based on the greater of the following rates published by the Federal Reserve: (1) the interest rate paid by Federal Reserve Banks on balances held in excess of required reserve balances and contractual clearing balances under Regulation D and (2) the daily effective federal funds rate. The interest rates paid to clients are set by the TD Depository Institutions and are not linked to any index. The servicing fee to the TD Depository Institutions under the IDA agreement is equal to 25 basis points on the aggregate average daily balance in the IDA accounts, subject to adjustment as it relates to deposits of less than or equal to $20 billion kept in floating-rate investments or in fixed-rate notional investments with a maturity of up to 24 months ("short-term fixed-rate investments"). For such floating-rate and short-term fixed-rate investments, the servicing fee is equal to the difference of the interest rate earned on the investments less the FDIC premiums paid (in basis points), divided by two. The servicing fee has a floor of 3 basis points (subject to adjustment from time to time to reflect material changes to the TD Depository Institutions' leverage costs) and a maximum of 25 basis points. In the event the marketing fee computation results in a negative amount, the Company must pay the TD Depository Institutions the negative amount. This effectively results in the Company guaranteeing the TD Depository Institutions revenue equal to the servicing fee on the IDA agreement, plus the reimbursement of FDIC insurance premiums. The marketing fee computation under the IDA agreement is affected by many variables, including the type, duration, principal balance and yield of the fixed-rate and floating-rate investments, the prevailing interest rate environment, the amount of client deposits and the yield paid on client deposits. Because a negative marketing fee computation would arise only if there were extraordinary movements in many of these variables, the maximum potential amount of future payments the Company could be required to make under this arrangement cannot be reasonably estimated. Management believes the potential for the marketing fee calculation to result in a negative amount to be remote. Accordingly, no contingent liability is carried on the Consolidated Balance Sheets for the IDA agreement. In addition, in the event the Company withdraws a notional investment prior to its maturity and the investment is in an unrealized loss position, the Company shall reimburse the TD Depository Institutions an amount equal to the economic replacement value of the investment, as defined in the IDA agreement. In addition, the Company has various other services agreements and transactions with TD and its affiliates. The following tables summarize revenues and expenses resulting from transactions with TD and its affiliates for the fiscal years indicated (dollars in millions): Description Statement of Income Classification Revenues from TD and its Affiliates 2017 2016 2015 Insured Deposit Account Agreement Bank deposit account fees $ 1,101 $ 926 $ 839 Referral and Strategic Alliance Agreement Various 14 14 13 Mutual Fund Agreements Investment product fees 15 11 — Other Various 10 7 6 Total revenues $ 1,140 $ 958 $ 858 Description Statement of Income Classification Expenses to TD and its Affiliates 2017 2016 2015 Canadian Call Center Services Agreement (1) Various $ 11 $ 22 $ 18 Other Various 1 3 4 Total expenses $ 12 $ 25 $ 22 (1) On September 30, 2016, the Company notified TD of its intent to not extend or renew the Canadian Call Center Services Agreement. Services with the Canadian Call Center ended by September 30, 2017 . The following table summarizes the classification and amount of receivables from and payables to TD and its affiliates on the Consolidated Balance Sheets resulting from related party transactions (dollars in millions): September 30, 2017 2016 Assets: Receivable from affiliates $ 110 $ 106 Liabilities: Payable to brokers, dealers and clearing organizations $ 37 $ 72 Payable to affiliates 38 9 Payables to brokers, dealers and clearing organizations primarily relate to securities lending activity and are settled in accordance with customary contractual terms. Receivables from and payables to TD affiliates resulting from client cash sweep activity are generally settled in cash the next business day. Other receivables from and payables to affiliates of TD are generally settled in cash on a monthly basis. As of September 30, 2017, receivables from and payables to affiliates on the Consolidated Balance Sheets included $27 million of assets acquired and $71 million of liabilities assumed, respectively, in connection with the acquisition of Scottrade and are expected to be settled during fiscal 2018. |
Condensed Financial Information
Condensed Financial Information (Parent Company Only) | 12 Months Ended |
Sep. 30, 2017 | |
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |
Condensed Financial Information (Parent Company Only) | Condensed Financial Information (Parent Company Only) The following tables present the Parent company's condensed balance sheets, statements of income and statements of cash flows. Because all other comprehensive income (loss) activity occurred on the Parent company for all periods presented, the Parent company's condensed statements of comprehensive income are not presented. PARENT COMPANY ONLY CONDENSED BALANCE SHEETS As of September 30, 2017 and 2016 2017 2016 (In millions) ASSETS Cash and cash equivalents $ 154 $ 248 Receivable from subsidiaries 6 8 Investments available-for-sale, at fair value 746 757 Investments in subsidiaries 9,043 5,894 Other, net 108 163 Total assets $ 10,057 $ 7,070 LIABILITIES AND STOCKHOLDERS' EQUITY Liabilities: Accounts payable and other liabilities $ 104 $ 171 Payable to subsidiaries and affiliates 54 31 Securities sold under agreements to repurchase 97 — Long-term debt 2,555 1,817 Total liabilities 2,810 2,019 Stockholders' equity 7,247 5,051 Total liabilities and stockholders' equity $ 10,057 $ 7,070 PARENT COMPANY ONLY CONDENSED STATEMENTS OF INCOME For the Years Ended September 30, 2017 , 2016 and 2015 2017 2016 2015 (In millions) Net revenues $ 31 $ 30 $ 17 Operating expenses 34 26 16 Operating income (loss) (3 ) 4 1 Other expense 71 53 43 Loss before income taxes and equity in income of subsidiaries (74 ) (49 ) (42 ) Provision for (benefit from) income taxes (22 ) 6 (16 ) Loss before equity in income of subsidiaries (52 ) (55 ) (26 ) Equity in income of subsidiaries 924 897 839 Net income $ 872 $ 842 $ 813 PARENT COMPANY ONLY CONDENSED STATEMENTS OF CASH FLOWS For the Years Ended September 30, 2017 , 2016 and 2015 2017 2016 2015 (In millions) Cash flows from operating activities: Net income $ 872 $ 842 $ 813 Adjustments to reconcile net income to net cash flows provided by operating activities: Equity in income of subsidiaries (924 ) (897 ) (839 ) Deferred income taxes (12 ) — (1 ) Dividends from subsidiaries 1,230 825 985 Stock-based compensation 36 34 36 Other 9 8 9 Changes in operating assets and liabilities: Receivable from subsidiaries 2 (3 ) 5 Other assets — 1 44 Accounts payable and other liabilities (67 ) 38 (40 ) Payable to subsidiaries and affiliates (4 ) 26 — Net cash provided by operating activities 1,142 874 1,012 Cash flows from investing activities: Investment in subsidiaries (15 ) (60 ) (40 ) Cash paid in business acquisition (1,698 ) — — Proceeds from sale and maturity of short-term investments — 600 500 Purchase of short-term investments — (601 ) (502 ) Purchase of investments available-for-sale, at fair value — (757 ) — Proceeds from sale of investments — — 1 Net cash used in investing activities (1,713 ) (818 ) (41 ) Cash flows from financing activities: Proceeds from issuance of long-term debt 798 — 1,248 Payment of debt issuance costs (8 ) — (11 ) Principal payments on long-term debt (385 ) — (569 ) Payment of prepayment premium on long-term debt (54 ) — — Proceeds from securities sold under agreements to repurchase 97 — — Principal payments on notes payable — — (150 ) Payment of cash dividends (379 ) (362 ) (326 ) Proceeds from issuance of common stock 400 — — Purchase of treasury stock — (352 ) (364 ) Purchase of treasury stock for income tax withholding on stock-based compensation (27 ) (30 ) (23 ) Other, net 35 16 27 Net cash provided by (used in) financing activities 477 (728 ) (168 ) Net increase (decrease) in cash and cash equivalents (94 ) (672 ) 803 Cash and cash equivalents at beginning of year 248 920 117 Cash and cash equivalents at end of year $ 154 $ 248 $ 920 Supplemental cash flow information: Interest paid $ 50 $ 47 $ 23 Income taxes paid $ 452 $ 488 $ 471 Noncash investing activities: Issuance of common stock in acquisition $ 1,261 $ — $ — Assets transferred to a subsidiary $ 15 $ — $ — |
Quarterly Data (Unaudited)
Quarterly Data (Unaudited) | 12 Months Ended |
Sep. 30, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Data (Unaudited) | Quarterly Data (Unaudited) (Dollars in millions, except per share amounts) For the Fiscal Year Ended September 30, 2017 First Quarter Second Quarter Third Fourth Net revenues $ 859 $ 904 $ 931 $ 983 Operating income $ 353 $ 358 $ 394 $ 361 Net income $ 216 $ 214 $ 231 $ 211 Basic earnings per share $ 0.41 $ 0.41 $ 0.44 $ 0.40 Diluted earnings per share $ 0.41 $ 0.40 $ 0.44 $ 0.39 For the Fiscal Year Ended September 30, 2016 First Quarter Second Quarter Third Quarter Fourth Net revenues $ 812 $ 846 $ 838 $ 829 Operating income $ 343 $ 343 $ 348 $ 283 Net income $ 212 $ 205 $ 240 $ 185 Basic earnings per share $ 0.39 $ 0.38 $ 0.45 $ 0.35 Diluted earnings per share $ 0.39 $ 0.38 $ 0.45 $ 0.35 Quarterly amounts may not sum to fiscal year totals due to rounding. |
Nature of Operations and Summ31
Nature of Operations and Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Sep. 30, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation — The consolidated financial statements include the accounts of TD Ameritrade Holding Corporation (the "Parent"), a Delaware corporation, and its wholly-owned subsidiaries (collectively, the "Company"). Intercompany balances and transactions have been eliminated. |
Nature of Operations | Nature of Operations — The Company provides securities brokerage services, including trade execution, clearing services and margin lending, through its broker-dealer subsidiaries; futures and foreign exchange trade execution services through its futures commission merchant ("FCM") and forex dealer member ("FDM") subsidiary; and trustee, custodial and other trust-related services to retirement plans and other custodial accounts through its state-chartered trust company subsidiary. The Company also provides cash sweep and deposit account products through third-party relationships, including relationships with affiliates. The Company's broker-dealer subsidiaries are subject to regulation by the Securities and Exchange Commission ("SEC"), the Financial Industry Regulatory Authority ("FINRA") and the various exchanges in which they maintain membership. The Company's FCM/FDM subsidiary is subject to regulation by the Commodity Futures Trading Commission ("CFTC") and the National Futures Association ("NFA"). Dividends from the Company's broker-dealer, FCM/FDM and trust company subsidiaries are a source of liquidity for the Parent. Requirements of the SEC, FINRA and CFTC relating to liquidity, net capital standards and the use of client funds and securities may limit funds available for the payment of dividends from the broker-dealer and FCM/FDM subsidiaries to the holding company. State regulatory requirements may limit funds available for the payment of dividends from the trust company subsidiary to the holding company. |
Use of Estimates | Use of Estimates — The preparation of consolidated financial statements in conformity with U.S. generally accepted accounting principles ("GAAP") requires management to make estimates and assumptions that affect the reported amount of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. |
Cash and Cash Equivalents | Cash and Cash Equivalents — The Company considers temporary, highly-liquid investments with an original maturity of three months or less to be cash equivalents, except for amounts required to be segregated for regulatory purposes. |
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 consists primarily of qualified deposits in special reserve bank accounts for the exclusive benefit of clients under Rule 15c3-3 of the Securities Exchange Act of 1934 (the "Exchange Act") and other regulations. Funds can be held in cash, reverse repurchase agreements, U.S. Treasury securities, U.S. government agency mortgage-backed securities and other qualified securities. Reverse repurchase agreements (securities purchased under agreements to resell) are treated as collateralized financing transactions and are carried at amounts at which the securities will subsequently be resold, plus accrued interest. The Company's reverse repurchase agreements are collateralized by U.S. Treasury securities and generally have a maturity of seven days. Cash and investments segregated and on deposit for regulatory purposes also includes amounts that have been segregated or secured for the benefit of futures clients according to the regulations of the CFTC governing futures commission merchants. |
Securities Borrowed and Securities Loaned | Securities Borrowed and Securities Loaned — Securities borrowed and securities loaned transactions are recorded at the amount of cash collateral provided or received. Securities borrowed transactions require the Company to provide the counterparty with collateral in the form of cash. The Company receives collateral in the form of cash for securities loaned transactions. For these transactions, the fees earned or incurred by the Company are recorded as net interest revenue on the Consolidated Statements of Income. The related interest receivable from and the brokerage interest payable to broker-dealers are included in other receivables and in accounts payable and other liabilities, respectively, on the Consolidated Balance Sheets. |
Receivable from/Payable to Clients | Receivable from/Payable to Clients — Receivable from clients primarily consists of margin loans to securities brokerage clients, which are collateralized by client securities, and is carried at the amount receivable, net of an allowance for doubtful accounts that is primarily based on the amount of unsecured margin balances. Payable to clients primarily consists of client cash held in brokerage accounts and is carried at the amount of client cash on deposit. The Company earns interest revenue and pays interest expense on its receivable from client and payable to client balances, respectively. The interest revenue and expense are included in net interest revenue on the Consolidated Statements of Income. |
Securities Owned | Securities Owned — Securities owned by our broker-dealer subsidiaries are recorded on a trade-date basis and carried at fair value, and the related changes in fair value are generally included in other revenues on the Consolidated Statements of Income. |
Investments Available-for-sale | Investments Available-for-sale — Investments available-for-sale are carried at fair value and unrealized gains and losses, net of deferred income taxes, are reflected as a component of accumulated other comprehensive income (loss) on the Consolidated Balance Sheets. Realized gains and losses on investments available-for-sale are determined on the specific identification method and are reflected on the Consolidated Statements of Income. As of September 30, 2017 , investments available-for-sale consists of U.S. government debt securities with contractual maturities between one and five years. There were no material unrealized gains or losses on investments available-for-sale as of September 30, 2017 and 2016 . |
Property and Equipment | Property and Equipment — Property and equipment is recorded at cost, net of accumulated depreciation and amortization, except for land, which is recorded at cost. Depreciation is provided using the straight-line method over the estimated useful service lives of the assets, which range from seven to 40 years for buildings and building components and three to seven years for all other depreciable property and equipment. Leasehold improvements are amortized over the lesser of the economic useful life of the improvement or the term of the lease. |
Software Development | Software Development — From the date technological feasibility has been established until beta testing is complete, software development costs are capitalized and included in property and equipment. Once the product is fully functional, such costs are amortized in accordance with the Company's normal accounting policies. Software development costs that do not meet capitalization criteria are expensed as incurred. |
Goodwill | Goodwill — The Company has recorded goodwill for purchase business combinations to the extent the purchase price of each completed acquisition exceeded the fair value of the net identifiable assets of the acquired company. The Company tests goodwill for impairment on an annual basis and more frequently as events occur or changes in circumstances indicate that the carrying amount of such assets may not be recoverable. In performing the impairment tests, the Company utilizes quoted market prices of the Company's common stock to estimate the fair value of the Company as a whole. The estimated fair value is then allocated to the Company's reporting units based on operating revenues, and is compared with the carrying value of the reporting units. No impairment charges have resulted from the annual impairment tests. |
Amortization of Acquired Intangible Assets | Amortization of Acquired Intangible Assets — Acquired intangible assets with finite lives are amortized on a straight-line basis over their estimated useful lives, ranging from seven months to 23 years. The acquired intangible asset associated with a trademark license agreement is not subject to amortization because the term of the agreement is considered to be indefinite. |
Long-Lived Assets and Acquired Intangible Assets | Long-Lived Assets and Acquired Intangible Assets — The Company reviews its long-lived assets and finite-lived acquired intangible assets for impairment whenever events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable. If based on that review, changes in circumstances indicate that the carrying amount of such assets may not be recoverable, the Company evaluates recoverability by comparing the undiscounted cash flows associated with the asset to the asset's carrying amount. The Company also evaluates the remaining useful lives of intangible assets to determine if events or trends warrant a revision to the remaining period of amortization. Long-lived assets classified as "held for sale" are reported at the lesser of carrying amount or fair value less cost to sell. As of September 30, 2017 , the Company had $5.0 million of assets classified as held for sale, which are included in other assets on the Consolidated Balance Sheets. There were no assets classified as held for sale as of September 30, 2016 . The Company tests its indefinite-lived acquired intangible asset for impairment on an annual basis and more frequently as events occur or changes in circumstances indicate that the carrying amount of such assets may not be recoverable. To determine if the indefinite-lived intangible asset is impaired, the Company first assesses certain qualitative factors. Based on this assessment, if it is determined that more likely than not the fair value of the indefinite-lived intangible asset is less than its carrying amount, the Company performs a quantitative impairment test. No impairment charges have resulted from the annual impairment tests. |
Securities Sold Under Agreements to Repurchse | Securities Sold Under Agreements to Repurchase — Transactions involving sales of securities under agreements to repurchase (repurchase agreements) are treated as collateralized financing transactions. Under repurchase agreements, the Company receives cash from counterparties and provides U.S. Treasury securities as collateral. These agreements are carried at amounts at which the securities will subsequently be repurchased, plus accrued interest, and the interest expense incurred by the Company is recorded as interest on borrowings on the Consolidated Statements of Income. See " General Contingencies " in Note 15 for a discussion of the potential risks associated with repurchase agreements and how the Company mitigates those risks. |
Income Taxes | Income Taxes — The Company files a consolidated U.S. income tax return with its subsidiaries on a calendar year basis, combined returns for state tax purposes where required and certain of its subsidiaries file separate state income tax returns where required. Deferred tax assets and liabilities are determined based on the differences between the financial statement carrying amounts and tax bases of assets and liabilities using enacted tax rates expected to apply to taxable income in the periods in which the deferred tax asset or liability is expected to be settled or realized. Uncertain tax positions are recognized if they are more likely than not to be sustained upon examination, based on the technical merits of the position. The amount of tax benefit recognized is the largest amount of benefit that is greater than 50% likely of being realized upon settlement. The Company recognizes interest and penalties, if any, related to income tax matters as part of the provision for income taxes on the Consolidated Statements of Income. |
Capital Stock | Capital Stock — The authorized capital stock of the Company consists of a single class of common stock and one or more series of preferred stock as may be authorized for issuance by the Company's board of directors. Voting, dividend, conversion and liquidation rights of the preferred stock would be established by the board of directors upon issuance of such preferred stock. |
Stock-Based Compensation | Stock-Based Compensation — The Company measures and recognizes compensation expense based on estimated grant date fair values for all stock-based payment arrangements. Stock-based compensation expense is based on awards expected to vest and therefore is reduced for estimated forfeitures. Forfeitures are estimated at the time of grant based on the Company's historical forfeiture experience and revised in subsequent periods if actual forfeitures differ from those estimates. |
Deferred Compensation | Deferred Compensation — Company common stock held in a rabbi trust pursuant to a Company deferred compensation plan is recorded at the fair value of the stock at the time it is transferred to the rabbi trust and is classified as treasury stock. The corresponding deferred compensation liability is recorded as a component of stockholders' equity on the Consolidated Balance Sheets . |
Revenue Recognition | Transaction-based Revenues — Client trades are recorded on a settlement-date basis with such trades generally settling within one to two business days after the trade date. Revenues and expenses related to client trades, including order routing revenue (also referred to as payment for order flow) and revenues from markups on riskless principal trades in fixed-income securities, are recorded on a trade-date basis. Revenues related to client trades are recorded net of promotional allowances. Securities owned by clients, including those that collateralize margin or similar transactions, are not reflected in the accompanying consolidated financial statements. Bank Deposit Account Fees — Bank deposit account fees includes revenues from the Insured Deposit Account ("IDA") agreement with TD Bank USA, N.A. ("TD Bank USA"), TD Bank, N.A. and The Toronto-Dominion Bank ("TD"). Under the IDA agreement, TD Bank USA and TD Bank, N.A. (together, the "TD Depository Institutions") make available to clients of the Company FDIC-insured money market deposit accounts as either designated sweep vehicles or as non-sweep deposit accounts. The Company provides marketing, recordkeeping and support services for the TD Depository Institutions with respect to the money market deposit accounts. In exchange for providing these services, the TD Depository Institutions pay the Company an aggregate marketing fee based on the weighted average yield earned on the client IDA assets, less the actual interest paid to clients, a servicing fee to the TD Depository Institutions and the cost of FDIC insurance premiums. The IDA agreement is described further in Note 21 . In addition, bank deposit account fees includes revenues resulting from a sweep program that is offered to eligible clients of the Company whereby clients' uninvested cash is swept to FDIC-insured accounts at third-party financial institutions participating in the program. Net Interest Revenue — Net interest revenue primarily consists of income generated by client cash and interest charged to clients on margin balances, net of interest paid to clients on their credit balances. It also includes net interest revenue from securities borrowed and securities loaned transactions. Investment Product Fees — Investment product fee revenue consists of revenues earned on client assets invested in money market mutual funds, other mutual funds and certain Company-sponsored investment programs. |
Advertising | Advertising — The Company expenses advertising costs the first time the advertising takes place. Client cash offers are also characterized as advertising expense, rather than as a reduction of revenue, because there is generally little or no cumulative revenue associated with an individual client earning a cash offer at the time the consideration is recognized in the Consolidated Statement of Income. |
Derivatives and Hedging Activities | Derivatives and Hedging Activities — The Company occasionally utilizes derivative instruments to manage risks, which may include market price, interest rate and foreign currency risks. The Company does not use derivative instruments for speculative or trading purposes. Derivatives are recorded on the Consolidated Balance Sheets as assets or liabilities at fair value. Derivative instruments properly designated to hedge exposure to changes in the fair value of assets or liabilities are accounted for as fair value hedges. Derivative instruments properly designated to hedge exposure to the variability of expected future cash flows or other forecasted transactions are accounted for as cash flow hedges. The Company formally documents the risk management objective and strategy for each hedge transaction. Derivative instruments that do not qualify for hedge accounting are carried at fair value on the Consolidated Balance Sheets with unrealized gains and losses recorded currently on the Consolidated Statements of Income. Cash flows from derivative instruments accounted for as fair value hedges or cash flow hedges are classified in the same category on the Consolidated Statements of Cash Flows as the cash flows from the items being hedged. For additional information on the Company's fair value and cash flow hedging instruments, see Note 10 . |
Earnings Per Share | Earnings Per Share — Basic earnings per share ("EPS") is computed by dividing net income by the weighted average common shares outstanding for the period. Diluted EPS reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock, except when such assumed exercise or conversion would have an antidilutive effect on EPS. The difference between the numerator and denominator used in the Company's computation of basic and diluted earnings per share consists of common stock equivalent shares related to stock-based compensation. There were no material antidilutive awards for fiscal years 2017 and 2015. The Company excluded from the calculation of diluted earnings per share 0.4 million shares underlying the stock-based compensation awards for fiscal year 2016 because their inclusion would have been antidilutive. |
Recently Adopted Accounting Pronouncements | Recently Adopted Accounting Pronouncements ASU 2017-03 - In January 2017, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2017-03, Amendments to SEC Paragraphs Pursuant to Staff Announcements at the September 22, 2016 and November 17, 2016 EITF Meetings . The applicable SEC Staff announcement applies to the following recently issued accounting standards that have not yet been adopted by the Company: Revenue from Contracts with Customers (ASU 2014-09); Leases (ASU 2016-02); Measurement of Credit Losses on Financial Instruments (ASU 2016-13); and any subsequent amendments to the aforementioned ASUs. Based on the views of the SEC staff, the amendments in ASU 2017-03 require entities to consider providing additional qualitative financial statement disclosures when the financial statement impact of adopting the three new ASUs mentioned above is not known or cannot be reasonably estimated. Such qualitative disclosures should include a description of the effect of the accounting policies that the registrant expects to apply, if determined, and a comparison to the entity's current accounting policies. In addition, an entity should describe the status of its process to implement the new standards and the significant implementation matters yet to be addressed. Since this update is intended to add disclosures related to certain ASUs, the adoption of ASU 2017-03 did not have a material impact on the Company's consolidated financial statements. |
Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements ASU 2017-12 - In August 2017, the FASB issued ASU 2017-12, Targeted Improvements to Accounting for Hedging Activities , which will amend the guidance in Accounting Standards Codification ("ASC") Topic 815, Derivatives and Hedging. The objective of this ASU is to improve the financial reporting of hedging relationships to better portray the economic results of an entity's risk management activities in its financial statements through changes to both the designation and measurement guidance for qualifying hedging relationships and to the presentation of hedge results. In addition, the amendments in this ASU make certain targeted improvements to simplify the application of the hedge accounting guidance in current GAAP. ASU 2017-12 is effective for fiscal years beginning after December 15, 2018 and interim periods within those fiscal years, with early adoption permitted. All transition requirements and elections under ASU 2017-12 should be applied to hedging relationships existing on the date of adoption, with the effect of the adoption reflected as of the beginning of the fiscal year of adoption. The amended presentation and disclosure guidance is required only prospectively. ASU 2017-12 will be effective for the Company's fiscal year beginning on October 1, 2019. The Company is currently assessing the impact this ASU will have on its consolidated financial statements. ASU 2017-04 - In January 2017, the FASB issued ASU 2017-04, Simplifying the Test for Goodwill Impairment, which is intended to simplify the test for goodwill impairment by eliminating Step 2 from the goodwill impairment test, which measures a goodwill impairment loss by comparing the implied fair value of a reporting unit's goodwill with the carrying amount of that goodwill. Under the amendments in this ASU, an entity should perform its annual goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. An entity should recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit's fair value; however, the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. When measuring the goodwill impairment loss, income tax effects from any tax deductible goodwill on the carrying amount of the reporting unit should be considered, if applicable. An entity will still have the option to perform the qualitative assessment for a reporting unit to determine if the quantitative test is necessary. ASU 2017-04 should be applied prospectively and is effective for annual or interim goodwill impairment tests in fiscal years beginning after December 15, 2019, with early adoption permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. ASU 2017-04 will be effective for the Company's fiscal year beginning October 1, 2020. The Company does not expect this ASU to have a material impact on its consolidated financial statements. ASU 2016-18 - In November 2016, the FASB issued ASU 2016-18, Restricted Cash . This ASU will amend the guidance in ASC Topic 230, Statement of Cash Flows , and is intended to reduce the diversity in the classification and presentation of changes in restricted cash on the statement of cash flows. The amendments within this ASU will require that the reconciliation of the beginning-of-period and end-of-period cash and cash equivalents amounts shown on the statement of cash flows include restricted cash and restricted cash equivalents. If restricted cash and restricted cash equivalents are presented separately from cash and cash equivalents on the balance sheet, an entity will be required to reconcile the amounts presented on the statement of cash flows to the amounts on the balance sheet. An entity will also be required to disclose information regarding the nature of the restrictions. ASU 2016-18 requires retrospective application and is effective for fiscal years beginning after December 15, 2017 and interim periods within those fiscal years, with early adoption permitted. ASU 2016-18 will be effective for the Company's fiscal year beginning October 1, 2018. The adoption of ASU 2016-18 will change the manner in which restricted cash and restricted cash equivalents are presented in the Company's consolidated financial statements. ASU 2016-16 - In October 2016, the FASB issued ASU 2016-16, Intra-Entity Transfers of Assets Other Than Inventory. This ASU will amend the guidance in ASC Topic 740, Income Taxes . The amendments in this ASU are intended to improve the accounting for the income tax consequences of intra-entity transfers of assets other than inventory by requiring an entity to recognize the income tax consequences when a transfer occurs, instead of when the asset is sold to a third party. ASU 2016-16 requires modified retrospective adoption and is effective for annual reporting periods beginning after December 15, 2017, including interim reporting periods within those annual reporting periods, with early adoption permitted. ASU 2016-16 will be effective for the Company's fiscal year beginning October 1, 2018. The Company does not expect this ASU to have an impact on its consolidated financial statements. ASU 2016-13 - In June 2016, the FASB issued ASU 2016-13, Measurement of Credit Losses on Financial Instruments . The main objective of ASU 2016-13 is to provide financial statement users with more decision-useful information about the expected credit losses on financial instruments and other commitments to extend credit held by an entity at each reporting date. To achieve this objective, the amendments in this update replace the incurred loss impairment methodology in current GAAP with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to develop credit loss estimates. ASU 2016-13 is effective for fiscal years beginning after December 15, 2019 and interim periods within those fiscal years, with early adoption permitted. Therefore, ASU 2016-13 will be effective for the Company's fiscal year beginning on October 1, 2020, using a modified retrospective approach. The Company is currently assessing the impact this ASU will have on its consolidated financial statements. ASU 2016-09 - In March 2016, the FASB issued ASU 2016-09, Improvements to Employee Share-Based Payment Accounting . The guidance in ASU 2016-09 simplifies several aspects of the accounting for share-based payment transactions, including: (1) all excess tax benefits and tax deficiencies should be recognized as income tax expense or benefit in the income statement; (2) tax effects of exercised or vested awards should be treated as discrete items in the period in which they occur; (3) excess tax benefits should be recognized regardless of whether the benefit reduces taxes payable in the current period; (4) excess tax benefits should be classified along with other income tax cash flows as an operating activity; (5) an entity can make an accounting policy election to either estimate the number of awards that are expected to vest or account for forfeitures when they occur; (6) the threshold to qualify for equity classification will permit withholding up to the maximum statutory rates in the applicable jurisdictions; and (7) cash paid by an employer when directly withholding shares for tax withholding purposes should be classified as a financing activity in the statement of cash flows. The transition requirements are dependent upon each amendment within this update and will be applied either prospectively, retrospectively or using a modified retrospective transition method. ASU 2016-09 is effective for annual periods beginning after December 15, 2016 and interim periods within those annual periods. Therefore, ASU 2016-09 will be effective for the Company's fiscal year beginning October 1, 2017. The Company expects the adoption of this ASU may create some volatility in its quarterly and annual effective income tax rate related to the excess tax benefits and tax deficiencies being recognized as income tax expense or benefit in the Consolidated Statements of Income. The amount of excess tax benefits and tax deficiencies recognized will depend on the volume of equity compensation during a particular period and on the market price of the Company's common stock at the date the equity awards either vest or are exercised. A large portion of the impact from the adoption of ASU 2016-09 will likely occur during the first quarter of each fiscal year due to the Company's historic practice of granting the majority of equity compensation in that period. ASU 2016-02 - In February 2016, the FASB issued ASU 2016-02, Leases . This ASU will supersede the guidance in ASC Topic 840, Leases . Under ASU 2016-02, for lease arrangements exceeding a 12-month term, a lessee will be required to recognize in the balance sheet a liability to make lease payments (the lease liability) and a right-of-use asset representing its right to use the underlying asset for the lease term. ASU 2016-02 will retain a distinction between finance and operating leases; however, the principal difference from the previous guidance is that lease assets and liabilities arising from operating leases will be recognized in the balance sheet. The recognition, measurement and presentation of expenses and cash flows arising from a lease by a lessee will not significantly change from current GAAP. The accounting applied by a lessor will be largely unchanged from that applied under current GAAP. ASU 2016-02 is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years, and will require an entity to recognize and measure leases at the beginning of the earliest period presented using a modified retrospective approach. Therefore, ASU 2016-02 will be effective for the Company's fiscal year beginning October 1, 2019. Early adoption is permitted. The Company is currently assessing the impact of this ASU, but does not expect the standard to have a material impact on its net income. Upon adoption of ASU 2016-02, the Company expects to recognize right-of-use assets and lease liabilities for its operating leases, with initial measurement as defined by the ASU, in its Consolidated Balance Sheets. ASU 2014-09 - In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers , to clarify the principles of recognizing revenue from contracts with customers and to improve financial reporting by creating common revenue recognition guidance for U.S. GAAP and International Financial Reporting Standards. This ASU will supersede the revenue recognition requirements in ASC Topic 605, Revenue Recognition, and most industry-specific guidance. Entities are required to apply the following steps when recognizing revenue under ASU 2014-09: (1) identify the contract(s) with a customer; (2) identify the performance obligations in the contract; (3) determine the transaction price; (4) allocate the transaction price to the performance obligations in the contract; and (5) recognize revenue when (or as) the entity satisfies a performance obligation. This ASU also requires additional disclosures related to the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts. An entity may apply the amendments by using one of the following two methods: (1) retrospective application to each prior reporting period presented or (2) a modified retrospective approach, requiring the standard be applied only to the most current period presented, with the cumulative effect of initially applying the standard recognized at the date of initial application. ASU 2014-09 is effective for annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period, with early adoption permitted. Subsequent to issuing ASU 2014-09, the FASB has issued additional standards for the purpose of clarifying certain aspects of ASU 2014-09. The subsequently issued ASUs have the same effective date and transition requirements as ASU 2014-09. The Company plans to adopt the revenue recognition standard as of October 1, 2018. The guidance does not apply to revenue associated with financial instruments, such as interest revenue, which is accounted for under other GAAP. Accordingly, the Company does not expect the adoption of this standard to impact net interest revenue. While the Company has not yet identified any material changes in the timing of revenue recognition, its review is ongoing. The Company has not selected a transition method and continues to evaluate the potential impacts that these revenue recognition standards may have on its consolidated financial statements, including the incremental costs of obtaining contracts, gross versus net reporting, and additional disclosure requirements. |
Loss Contingencies (ASC) 450 | ASC 450, Loss Contingencies , governs the recognition and disclosure of loss contingencies, including potential losses from legal and regulatory matters. ASC 450 categorizes loss contingencies using three terms based on the likelihood of occurrence of events that result in a loss: "probable" means that "the future event or events are likely to occur;" "remote" means that "the chance of the future event or events occurring is slight;" and "reasonably possible" means that "the chance of the future event or events occurring is more than remote but less than likely." Under ASC 450, the Company accrues for losses that are considered both probable and reasonably estimable. |
Fair Value Measurement (ASC) 820-10 | ASC 820-10, Fair Value Measurement , defines fair value as the price that would be received to sell an asset or paid to transfer a liability (an exit price) in an orderly transaction between market participants at the measurement date. ASC 820-10 establishes a hierarchy for inputs used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that the most observable inputs be used when available. Observable inputs reflect the assumptions market participants would use in pricing the asset or liability, developed based on market data obtained from sources independent of the Company. Unobservable inputs reflect the Company's own assumptions about the assumptions market participants would use in pricing the asset or liability, developed based on the best information available in the circumstances. |
Business Acquisition (Tables)
Business Acquisition (Tables) | 12 Months Ended |
Sep. 30, 2017 | |
Business Combinations [Abstract] | |
Schedule of Total Purchase Price | The purchase price for Scottrade was comprised of the following (dollars in millions): TD Ameritrade Holding Corporation common stock issued to the Riney Stockholder and the Escrow Account (1) $ 1,261 Cash paid at closing (2) 3,073 Total purchase price $ 4,334 (1) Represents the value of 27,685,493 shares of the Company's common stock at a price of $45.55 per share. The per share value is based on the opening market price of the Company's common stock as of September 18, 2017, the Acquisition date. At the closing of the Acquisition, the Riney Stockholder received 25,948,678 shares of the Company's common stock and the remaining 1,736,815 shares of the Company's common stock otherwise payable to the Riney Stockholder were deposited into the Escrow Account. (2) Includes $1.38 billion of Bank Merger Consideration paid by TD Bank, N.A. to Scottrade, which was used to fund a portion of the Acquisition. |
Schedule of Provisional Purchase Price Allocation | The provisional purchase price allocation for Scottrade is summarized as follows (dollars in millions): Cash and cash equivalents (1) $ 1,785 Cash and investments segregated and on deposit for regulatory purposes 3,535 Receivable from brokers, dealers and clearing organizations 167 Receivable from clients, net 3,137 Receivable from affiliates 29 Other receivables 55 Securities owned 37 Property and equipment 133 Goodwill 1,746 Acquired intangible assets 974 Deferred tax assets 75 Other assets 35 Total assets acquired 11,708 Payable to brokers, dealers and clearing organizations (354 ) Payable to clients (6,248 ) Accounts payable and other liabilities (230 ) Payable to affiliates (2) (103 ) Long-term debt (3) (439 ) Total liabilities assumed (7,374 ) Total provisional purchase price allocated $ 4,334 (1) Includes $1.38 billion of Bank Merger Consideration paid by TD Bank, N.A. to Scottrade, which was used to fund a portion of the Acquisition. (2) Includes approximately $27 million payable to TD Bank, N.A. for post-closing adjustments related to the Bank Merger Consideration, which were identified subsequent to the closing of the Acquisition and prior to the fiscal year ended September 30, 2017. (3) On the date of Acquisition, amounts owed by Scottrade under its 6.125% senior notes, including a prepayment premium, and the amount owed under its 6.18% secured loan were repaid by the Company. |
Schedule of Major Classes of Acquired Intangible Assets and Weighted-Average Estimated Amortization Periods | The following table summarizes the major classes of acquired intangible assets and the respective weighted-average estimated amortization periods (dollars in millions): Estimated Fair Value Weighted- Average Estimated Amortization Period (Years) Client relationships $ 955 18.0 Trade names 10 1.3 Technology 9 0.6 Total acquired intangible assets $ 974 17.7 |
Schedule of Pro Forma Financial Information (Unaudited) | The following table summarizes the unaudited pro forma financial information for the fiscal years indicated (dollars in millions): 2017 2016 (unaudited) Pro forma net revenues $ 4,586 $ 4,158 Pro forma net income $ 921 $ 700 Pro forma basic earnings per share $ 1.62 $ 1.23 Pro forma diluted earnings per share $ 1.62 $ 1.22 |
Cash and Cash Equivalents (Tabl
Cash and Cash Equivalents (Tables) | 12 Months Ended |
Sep. 30, 2017 | |
Cash and Cash Equivalents [Abstract] | |
Summary of Cash and Cash Equivalents | The Company's cash and cash equivalents is summarized in the following table (dollars in millions): September 30, 2017 2016 Broker-dealer subsidiaries $ 997 $ 1,153 Corporate 279 460 Futures commission merchant and forex dealer member subsidiary 98 125 Trust company subsidiary 79 85 Investment advisory subsidiaries 19 32 Total $ 1,472 $ 1,855 |
Cash and Investments Segregat34
Cash and Investments Segregated and on Deposit for Regulatory Purposes (Tables) | 12 Months Ended |
Sep. 30, 2017 | |
Restricted Cash and Investments [Abstract] | |
Cash and Investments Segregated and on Deposit for Regulatory Purposes | Cash and investments segregated and on deposit for regulatory purposes consists of the following (dollars in millions): September 30, 2017 2016 U.S. government debt securities $ 4,019 $ 6,523 Cash in demand deposit accounts 3,653 657 U.S. government agency mortgage-backed securities 1,486 — Reverse repurchase agreements (collateralized by U.S. government debt securities) 1,004 1,288 Cash on deposit with futures commission merchants 209 186 U.S. government debt securities on deposit with futures commission merchant 75 75 Total $ 10,446 $ 8,729 |
Receivable from and Payable t35
Receivable from and Payable to Brokers, Dealers and Clearing Organizations (Tables) | 12 Months Ended |
Sep. 30, 2017 | |
Brokers and Dealers [Abstract] | |
Amounts Receivable from and Payable to Brokers, Dealers and Clearing Organizations | Amounts receivable from and payable to brokers, dealers and clearing organizations consist of the following (dollars in millions): September 30, 2017 2016 Receivable: Deposits paid for securities borrowed $ 1,154 $ 1,051 Clearing organizations 151 116 Broker-dealers 21 16 Securities failed to deliver 8 7 Total $ 1,334 $ 1,190 Payable: Deposits received for securities loaned $ 2,449 $ 1,990 Clearing organizations 32 27 Securities failed to receive 21 21 Broker-dealers 2 2 Total $ 2,504 $ 2,040 |
Allowance for Doubtful Accoun36
Allowance for Doubtful Accounts on Receivables (Tables) | 12 Months Ended |
Sep. 30, 2017 | |
Valuation and Qualifying Accounts [Abstract] | |
Summary of activity in the allowance for doubtful accounts on client and other receivables [Table Text Block] | The following table summarizes activity in the Company's allowance for doubtful accounts on client and other receivables for the fiscal years indicated (dollars in millions): 2017 2016 2015 Beginning balance $ 9 $ 12 $ 10 Provision for doubtful accounts, net 2 2 6 Acquired in business acquisition 2 — — Write-off of doubtful accounts (2 ) (5 ) (4 ) Ending balance $ 11 $ 9 $ 12 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Sep. 30, 2017 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property and Equipment | Property and equipment consists of the following (dollars in millions): September 30, 2017 2016 Buildings and building components $ 351 $ 269 Computer equipment 270 240 Software 215 187 Leasehold improvements 173 159 Building construction in process 101 12 Land 77 44 Other property and equipment 83 75 1,270 986 Less: Accumulated depreciation and amortization (518 ) (460 ) Property and equipment at cost, net $ 752 $ 526 |
Goodwill and Acquired Intangi38
Goodwill and Acquired Intangible Assets (Tables) | 12 Months Ended |
Sep. 30, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Changes in the Carrying Amount of Goodwill | The following table summarizes changes in the carrying amount of goodwill (dollars in millions): Balance as of September 30, 2016 (1) $ 2,467 Goodwill recorded in acquisition of Scottrade (see Note 2) 1,746 Balance as of September 30, 2017 $ 4,213 (1) There were no material changes in the carrying amount of goodwill during the fiscal year ended September 30, 2016. |
Acquired Intangible Assets | Acquired intangible assets consist of the following (dollars in millions): September 30, 2017 2016 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Client relationships $ 2,183 $ (877 ) $ 1,306 $ 1,228 $ (799 ) $ 429 Technology and content 108 (100 ) 8 99 (99 ) — Trade names 10 — 10 — — — Trademark license 146 — 146 146 — 146 $ 2,447 $ (977 ) $ 1,470 $ 1,473 $ (898 ) $ 575 |
Estimated Future Amortization Expense for Acquired Intangible Assets | Estimated future amortization expense for acquired intangible assets outstanding as of September 30, 2017 is as follows (dollars in millions): Fiscal Year Estimated Amortization Expense 2018 $ 139 2019 125 2020 116 2021 106 2022 105 Thereafter (to 2035) 733 Total $ 1,324 |
Exit Liabilities (Tables)
Exit Liabilities (Tables) | 12 Months Ended |
Sep. 30, 2017 | |
Restructuring and Related Activities [Abstract] | |
Summary of the Activity in Exit Liabilities | The following is a summary of the activity in the Company’s exit liabilities by the Statement of Income classification (dollars in millions): Employee Compensation and Benefits Other Total Balance, September 30, 2016 $ 4 $ — $ 4 Exit liabilities assumed in business acquisition 100 — 100 Costs incurred and charged to expense 43 1 44 Costs paid or otherwise settled (9 ) (1 ) (10 ) Balance, September 30, 2017 $ 138 $ — $ 138 |
Long-term Debt and Other Borr40
Long-term Debt and Other Borrowings (Tables) | 12 Months Ended |
Sep. 30, 2017 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt and Other Borrowings | Long-term debt and other borrowings consist of the following (dollars in millions): September 30, 2017 Face Value Unamortized Discounts and Debt Issuance Costs Fair Value Adjustment (1) Net Carrying Value Other borrowings: Securities sold under agreements to repurchase $ 97 $ — $ — $ 97 Long-term debt: Senior Notes: 5.600% Notes due 2019 500 (1 ) 15 514 2.950% Notes due 2022 750 (5 ) — 745 3.625% Notes due 2025 500 (3 ) 11 508 3.300% Notes due 2027 800 (9 ) (3 ) 788 Subtotal - Long-term debt 2,550 (18 ) 23 2,555 Total long-term debt and other borrowings $ 2,647 $ (18 ) $ 23 $ 2,652 September 30, 2016 Face Value Unamortized Discounts and Debt Issuance Costs Fair Value Adjustment (1) Net Carrying Value Senior Notes: 5.600% Notes due 2019 $ 500 $ (2 ) $ 33 $ 531 2.950% Notes due 2022 750 (6 ) — 744 3.625% Notes due 2025 500 (4 ) 46 542 Total long-term debt $ 1,750 $ (12 ) $ 79 $ 1,817 (1) Fair value adjustments relate to changes in the fair value of the debt while in a fair value hedging relationship. See " Fair Value Hedging " below. |
Fiscal Year Maturities on Long-term Debt Outstanding | Fiscal year maturities on long-term debt outstanding at September 30, 2017 are as follows (dollars in millions): 2018 $ — 2019 — 2020 500 2021 — 2022 750 Thereafter 1,300 Total $ 2,550 |
Summary of Key Information About Senior Notes | Key information about the Senior Notes is summarized in the following table (dollars in millions): Description Date Issued Maturity Date Aggregate Principal Interest Rate 2019 Notes November 25, 2009 December 1, 2019 $500 5.600% 2022 Notes March 4, 2015 April 1, 2022 $750 2.950% 2025 Notes October 17, 2014 April 1, 2025 $500 3.625% 2027 Notes April 27, 2017 April 1, 2027 $800 3.300% |
Gains and Losses Resulting from Changes in Fair Value of Interest Rate Swaps and Hedged Fixed Rate Debt [Table Text Block] | The following table summarizes gains and losses resulting from changes in the fair value of interest rate swaps designated as fair value hedges and the hedged fixed-rate debt for the fiscal years indicated (dollars in millions): 2017 2016 2015 Gain (loss) on fair value of interest rate swaps $ (56 ) $ 16 $ 31 Gain (loss) on fair value of hedged fixed-rate debt 56 (16 ) (31 ) Net gain (loss) recorded in interest on borrowings $ — $ — $ — |
Schedule of Pre-Tax Losses Resulting from Changes in the Fair Value of the Forward-Starting Interest Rate Swaps | The following table summarizes pre-tax losses resulting from changes in the fair value of the forward-starting interest rate swaps for the fiscal years indicated (dollars in millions): Amount of Loss Recognized in Other Comprehensive Income (Loss) (Effective Portion) 2017 2016 2015 Forward-starting interest rate swaps $ — $ — $ (15 ) |
Schedule of the Fair Value of Outstanding Derivatives Designated as Hedging Instruments on the Consolidated Balance Sheets | The following table summarizes the classification and the fair value of outstanding derivatives designated as hedging instruments on the Consolidated Balance Sheets (dollars in millions): September 30, 2017 2016 Pay-variable interest rate swaps designated as fair value hedges: Other assets $ 26 $ 79 Accounts payable and other liabilities $ (3 ) $ — |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Sep. 30, 2017 | |
Income Tax Disclosure [Abstract] | |
Provision for Income Taxes | Provision for income taxes is comprised of the following for the fiscal years indicated (dollars in millions): 2017 2016 2015 Current expense (benefit): Federal $ 484 $ 435 $ 470 State 49 (4 ) 28 533 431 498 Deferred benefit: Federal (11 ) (5 ) (22 ) State — (3 ) (1 ) (11 ) (8 ) (23 ) Provision for income taxes $ 522 $ 423 $ 475 |
Reconciliation of Federal Statutory Tax Rate to Effective Tax Rate | A reconciliation of the federal statutory tax rate to the effective tax rate applicable to pre-tax income follows for the fiscal years indicated: 2017 2016 2015 Federal statutory rate 35.0 % 35.0 % 35.0 % State taxes, net of federal tax effect 2.8 2.8 3.0 Adjustments to estimated state income taxes — (0.2 ) 0.1 Federal incentives (0.3 ) (1.4 ) — Interest recorded (reversed) on unrecognized tax benefits, net 0.2 (1.1 ) (0.1 ) Reversal of accruals for unrecognized tax benefits (0.4 ) (1.8 ) (1.1 ) Other 0.1 0.1 — 37.4 % 33.4 % 36.9 % |
Deferred Tax Assets (Liabilities) | Deferred tax assets (liabilities) are comprised of the following (dollars in millions): September 30, 2017 2016 Deferred tax assets: Accrued and other liabilities $ 131 $ 62 Stock-based compensation 28 36 Unrecognized loss on cash flow hedging instruments 15 13 Allowance for doubtful accounts 6 5 Intangible assets, state tax benefit 5 7 Operating loss carryforwards 1 3 Gross deferred tax assets 186 126 Less: Valuation allowance (1 ) (2 ) Net deferred tax assets 185 124 Deferred tax liabilities: Acquired intangible assets (331 ) (364 ) Property and equipment (35 ) (36 ) Prepaid expenses (11 ) (5 ) Other deferred tax liabilities (1 ) — Total deferred tax liabilities (378 ) (405 ) Net deferred tax liabilities $ (193 ) $ (281 ) |
Reconciliation of Activity Related to Unrecognized Tax Benefits | A reconciliation of the activity related to unrecognized tax benefits follows for the fiscal years indicated (dollars in millions): 2017 2016 2015 Beginning balance $ 142 $ 154 $ 165 Additions based on tax positions related to the current year 28 30 16 Additions for tax positions of prior years — 20 5 Reductions for tax positions of prior years (10 ) (33 ) (4 ) Reductions due to settlements with taxing authorities (1 ) (21 ) (21 ) Reductions due to lapsed statute of limitations (7 ) (8 ) (7 ) Ending balance $ 152 $ 142 $ 154 |
Capital Requirements (Tables)
Capital Requirements (Tables) | 12 Months Ended |
Sep. 30, 2017 | |
Regulatory Capital Requirements [Abstract] | |
Net Capital and Net Capital Requirements for Company's Broker-dealer Subsidiaries | Net capital and net capital requirements for the Company's broker-dealer subsidiaries are summarized in the following tables (dollars in millions): TD Ameritrade Clearing, Inc. Date Net Capital Required Net Capital (2% of Aggregate Debit Balances) Net Capital in Excess of Required Net Capital Ratio of Net Capital to Aggregate Debit Balances September 30, 2017 $ 1,595 $ 340 $ 1,255 9.39 % September 30, 2016 $ 1,719 $ 288 $ 1,431 11.95 % TD Ameritrade, Inc. Date Net Capital Required Net Capital (Minimum Dollar Requirement) Net Capital in Excess of Required Net Capital September 30, 2017 $ 155 $ 0.25 $ 155 September 30, 2016 $ 139 $ 0.25 $ 138 Scottrade, Inc. Date Net Capital Required Net Capital (2% of Aggregate Debit Balances) Net Capital in Excess of Required Net Capital Ratio of Net Capital to Aggregate Debit Balances September 30, 2017 $ 348 $ 70 $ 278 9.99 % September 30, 2016 N/A N/A N/A N/A |
Adjusted Net Capital and Adjusted Net Capital Requirements for Company's FCM and FDM Subsidiary | Adjusted net capital and adjusted net capital requirements for the Company's FCM and FDM subsidiary are summarized in the following table (dollars in millions): TD Ameritrade Futures & Forex LLC Date Adjusted Net Capital Required Adjusted Net Capital ($20 Million Plus 5% of All Foreign Exchange Liabilities Owed to Forex Clients in Excess of $10 Million) Adjusted Net Capital in Excess of Required Adjusted Net Capital September 30, 2017 $ 77 $ 22 $ 55 September 30, 2016 $ 117 $ 22 $ 95 |
Stock-based Compensation (Table
Stock-based Compensation (Tables) | 12 Months Ended |
Sep. 30, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Summary of Option Activity in Stock Incentive Plans | The following is a summary of option activity in the Company's stock incentive plans for the fiscal year ended September 30, 2017 : Number of Options (in thousands) Weighted Average Exercise Price Weighted Average Remaining Contractual Term (Years) Aggregate Intrinsic Value (in millions) Outstanding at beginning of year 1,784 $ 21.33 Exercised (1,264 ) $ 18.42 Expired (17 ) $ 40.33 Outstanding at end of year 503 $ 27.97 8.3 $ 10 Exercisable at end of year 126 $ 27.97 8.3 $ 3 |
Summary of Assumptions used for Estimation of Fair Value of Stock Options Granted | The fair value of stock options granted during fiscal year 2016 was estimated using a Black-Scholes-Merton valuation model with the following inputs: Risk-free interest rate 1.73 % Expected dividend yield 2.4 % Expected volatility 27 % Expected option life (years) 6.5 |
Summary of Restricted Stock Unit Activity in Stock Incentive Plans | The following is a summary of RSU activity in the Company's stock incentive plans for the fiscal year ended September 30, 2017 : Number of Units (in thousands) Weighted Average Grant Date Fair Value Nonvested at beginning of year 3,506 $ 31.49 Granted 780 $ 40.66 Vested (1,693 ) $ 30.51 Forfeited (199 ) $ 35.78 Nonvested at end of year 2,394 $ 34.83 |
Summary of Performance Restricted Stock Unit Activity in Stock Incentive Plans | The following is a summary of PRSU activity in the Company's stock incentive plans for the fiscal year ended September 30, 2017 : Number of Units (in thousands) Weighted Average Grant Date Fair Value Nonvested at beginning of year — $ — Granted 265 $ 39.48 Nonvested at end of year 265 $ 39.48 |
Summary of Assumptions used for Estimation of Fair Value of PRSUs Granted | The fair value of PRSUs granted during fiscal year 2017 was estimated using a Monte Carlo simulation model with the following inputs: Risk-free interest rate 1.34 % Expected dividend yield 0 % Expected volatility 27 % Expected term (years) 2.9 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Sep. 30, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Summary of Future Minimum Rental Commitments Under Non-Cancelable Operating Leases | The Company has various non-cancelable operating leases on facilities requiring annual payments as follows (dollars in millions): Fiscal Year Minimum Lease Payments Sublease Income Net Lease Commitments 2018 $ 90 $ (4 ) $ 86 2019 73 (3 ) 70 2020 59 (2 ) 57 2021 41 (3 ) 38 2022 31 (2 ) 29 Thereafter (to 2033) 121 — 121 Total $ 415 $ (14 ) $ 401 |
Summary of Collateral Available, Loaned or Repledged | The following table summarizes the fair values of client margin securities and stock borrowings that were available to the Company to utilize as collateral on various borrowings or for other purposes, and the amount of that collateral loaned or repledged by the Company (dollars in billions): September 30, 2017 2016 Client margin securities $ 23.8 $ 16.5 Stock borrowings 1.2 1.1 Total collateral available $ 25.0 $ 17.6 Collateral loaned $ 2.4 $ 2.0 Collateral repledged 4.1 2.7 Total collateral loaned or repledged $ 6.5 $ 4.7 |
Summary of Cash Deposited with and Securities Pledged to Clearinghouses | The following table summarizes cash deposited with and securities pledged to clearinghouses by the Company (dollars in millions): September 30, Assets Balance Sheet Classification 2017 2016 Cash Receivable from brokers, dealers and clearing organizations $ 151 $ 116 U.S. government debt securities Securities owned, at fair value 398 220 Total $ 549 $ 336 |
Fair Value Disclosures (Tables)
Fair Value Disclosures (Tables) | 12 Months Ended |
Sep. 30, 2017 | |
Fair Value Disclosures [Abstract] | |
Fair Value Hierarchy for Assets and Liabilities Measured on Recurring Basis | The following tables present the Company's fair value hierarchy for assets and liabilities measured at fair value on a recurring basis as of September 30, 2017 and 2016 (dollars in millions): As of September 30, 2017 Level 1 Level 2 Level 3 Fair Value Assets: Cash equivalents: Money market mutual funds $ 1,081 $ — $ — $ 1,081 Investments segregated for regulatory purposes: U.S. government debt securities — 4,094 — 4,094 U.S. government agency mortgage-backed securities — 1,486 — 1,486 Subtotal - Investments segregated for regulatory purposes — 5,580 — 5,580 Securities owned: U.S. government debt securities — 498 — 498 Other 1 4 — 5 Subtotal - Securities owned 1 502 — 503 Investments available-for-sale: U.S. government debt securities — 746 — 746 Other assets: Pay-variable interest rate swaps (1) — 26 — 26 U.S. government debt securities — 1 — 1 Auction rate securities — — 1 1 Subtotal - Other assets — 27 1 28 Total assets at fair value $ 1,082 $ 6,855 $ 1 $ 7,938 Liabilities: Accounts payable and other liabilities: Pay-variable interest rate swaps (1) $ — $ 3 $ — $ 3 (1) See " Fair Value Hedging " in Note 10 for details. As of September 30, 2016 Level 1 Level 2 Level 3 Fair Value Assets: Cash equivalents: Money market mutual funds $ 1,658 $ — $ — $ 1,658 Investments segregated for regulatory purposes: U.S. government debt securities — 6,598 — 6,598 Securities owned: U.S. government debt securities — 320 — 320 Other 6 5 — 11 Subtotal - Securities owned 6 325 — 331 Investments available-for-sale: U.S. government debt securities — 757 — 757 Other assets: Pay-variable interest rate swaps (1) — 79 — 79 U.S. government debt securities — 4 — 4 Auction rate securities — — 1 1 Subtotal - Other assets — 83 1 84 Total assets at fair value $ 1,664 $ 7,763 $ 1 $ 9,428 Liabilities: Accounts payable and other liabilities: Securities sold, not yet purchased: Equity securities $ 6 $ — $ — $ 6 (1) See " Fair Value Hedging " in Note 10 for details. |
Offsetting Assets and Liabili46
Offsetting Assets and Liabilities (Tables) | 12 Months Ended |
Sep. 30, 2017 | |
Offsetting [Abstract] | |
Effect of Rights of Setoff Associated with Company's Recognized Assets and Liabilities | The following tables present information about the potential effect of rights of setoff associated with the Company's recognized assets and liabilities as of September 30, 2017 and 2016 (dollars in millions): September 30, 2017 Gross Amounts Not Offset in the Consolidated Balance Sheet Gross Amounts of Recognized Assets and Liabilities Gross Amounts Offset in the Consolidated Balance Sheet Net Amounts Presented in the Consolidated Balance Sheet Financial Instruments (5) Collateral Received or Pledged (Including Cash) (6) Net Amount (7) Assets: Investments segregated for regulatory purposes: Reverse repurchase agreements $ 1,004 $ — $ 1,004 $ — $ (1,004 ) $ — Receivable from brokers, dealers and clearing organizations: Deposits paid for securities borrowed (1) 1,154 — 1,154 (110 ) (1,023 ) 21 Other assets: Pay-variable interest rate swaps 26 — 26 — (26 ) — Reverse repurchase agreements 65 — 65 — (65 ) — Total other assets 91 — 91 — (91 ) — Total $ 2,249 $ — $ 2,249 $ (110 ) $ (2,118 ) $ 21 Liabilities: Payable to brokers, dealers and clearing organizations: Deposits received for securities loaned (2)(3) $ 2,449 $ — $ 2,449 $ (112 ) $ (2,113 ) $ 224 Securities sold under agreements to repurchase (4) 97 — 97 2 (99 ) — Accounts payable and other liabilities: Pay-variable interest rate swaps 3 — 3 — (1 ) 2 Total $ 2,549 $ — $ 2,549 $ (110 ) $ (2,213 ) $ 226 September 30, 2016 Gross Amounts Not Offset in the Consolidated Balance Sheet Gross Amounts of Recognized Assets and Liabilities Gross Amounts Offset in the Consolidated Balance Sheet Net Amounts Presented in the Consolidated Balance Sheet Financial Instruments (5) Collateral Received or Pledged (Including Cash) (6) Net Amount (7) Assets: Investments segregated for regulatory purposes: Reverse repurchase agreements $ 1,288 $ — $ 1,288 $ — $ (1,288 ) $ — Receivable from brokers, dealers and clearing organizations: Deposits paid for securities borrowed (1) 1,051 — 1,051 (172 ) (862 ) 17 Other assets: Pay-variable interest rate swaps 79 — 79 — (79 ) — Total $ 2,418 $ — $ 2,418 $ (172 ) $ (2,229 ) $ 17 Liabilities: Payable to brokers, dealers and clearing organizations: Deposits received for securities loaned (2)(3) $ 1,990 $ — $ 1,990 $ (172 ) $ (1,638 ) $ 180 (1) Included in the gross amounts of deposits paid for securities borrowed is $675 million and $590 million as of September 30, 2017 and 2016 , respectively, transacted through a risk-sharing program with the OCC, which guarantees the return of cash to the Company. See " General Contingencies " in Note 15 for a discussion of the potential risks associated with securities borrowing transactions and how the Company mitigates those risks. (2) Included in the gross amounts of deposits received for securities loaned is $1.65 billion and $1.07 billion as of September 30, 2017 and 2016 , respectively, transacted through a risk-sharing program with the OCC, which guarantees the return of securities to the Company. See " General Contingencies " in Note 15 for a discussion of the potential risks associated with securities lending transactions and how the Company mitigates those risks. (3) Substantially all of the Company's securities lending transactions have a continuous contractual term and, upon notice by either party, may be terminated within two business days. The following table summarizes the Company's gross liability for securities lending transactions by the class of securities loaned (dollars in millions): September 30, 2017 2016 Deposits received for securities loaned: Equity securities $ 2,109 $ 1,683 Exchange-traded funds 230 216 Closed-end funds 66 73 Other 44 18 Total $ 2,449 $ 1,990 (4) The collateral pledged includes available-for-sale U.S. government debt securities at fair value. All of the Company's repurchase agreements have a remaining contractual maturity of less than one year and, upon default by either party, may be terminated at the option of the non-defaulting party. See " General Contingencies " in Note 15 for a discussion of the potential risks associated with repurchase agreements and how the Company mitigates those risks. (5) Amounts represent recognized assets and liabilities that are subject to enforceable master agreements with rights of setoff. (6) Represents the fair value of collateral the Company had received or pledged under enforceable master agreements, limited for table presentation purposes to the net amount of the recognized assets due from or liabilities due to each counterparty. At September 30, 2017 and 2016 , the Company had received total collateral with a fair value of $2.26 billion and $2.44 billion , respectively, and pledged total collateral with a fair value of $2.32 billion and $1.81 billion , respectively. (7) Represents the amount for which, in the case of net recognized assets, the Company had not received collateral, and in the case of net recognized liabilities, the Company had not pledged collateral. |
Disaggregation of Gross Secured Lending Transactions | The following table summarizes the Company's gross liability for securities lending transactions by the class of securities loaned (dollars in millions): September 30, 2017 2016 Deposits received for securities loaned: Equity securities $ 2,109 $ 1,683 Exchange-traded funds 230 216 Closed-end funds 66 73 Other 44 18 Total $ 2,449 $ 1,990 |
Accumulated Other Comprehensi47
Accumulated Other Comprehensive Income (Loss) (Tables) | 12 Months Ended |
Sep. 30, 2017 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Schedule of Comprehensive Income (Loss) | The following table presents the net change in fair value recorded for each component of other comprehensive income (loss) before and after income tax for the fiscal years indicated (dollars in millions): 2017 2016 2015 Before Tax Tax Effect Net of Tax Before Tax Tax Effect Net of Tax Before Tax Tax Effect Net of Tax Investments available-for-sale: Unrealized loss $ (9 ) $ 4 $ (5 ) $ — $ — $ — $ — $ — $ — Cash flow hedging instruments: Net unrealized loss — — — — — — (15 ) 5 (10 ) Reclassification adjustment for portion of realized loss amortized to net income (1) 4 (2 ) 2 5 (2 ) 3 4 (1 ) 3 Other comprehensive income (loss) $ (5 ) $ 2 $ (3 ) $ 5 $ (2 ) $ 3 $ (11 ) $ 4 $ (7 ) (1) The before tax reclassification amounts and the related tax effects are included in interest on borrowings and provision for income taxes, respectively, on the Consolidated Statements of Income. |
Schedule of Accumulated Other Comprehensive Income (Loss) | The following table presents after-tax changes in each component of accumulated other comprehensive loss for the fiscal years indicated (dollars in millions): 2017 2016 2015 Investments available-for-sale: Beginning balance $ — $ — $ — Other comprehensive loss before reclassification (5 ) — — Current period change (5 ) — — Ending balance $ (5 ) $ — $ — Cash flow hedging instruments: Beginning balance $ (22 ) $ (25 ) $ (18 ) Other comprehensive loss before reclassification — — (10 ) Amount reclassified from accumulated other comprehensive loss 2 3 3 Current period change 2 3 (7 ) Ending balance $ (20 ) $ (22 ) $ (25 ) Total accumulated other comprehensive loss: Beginning balance $ (22 ) $ (25 ) $ (18 ) Other comprehensive loss before reclassification (5 ) — (10 ) Amount reclassified from accumulated other comprehensive loss 2 3 3 Current period change (3 ) 3 (7 ) Ending balance $ (25 ) $ (22 ) $ (25 ) |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 12 Months Ended |
Sep. 30, 2017 | |
Related Party Transactions [Abstract] | |
Schedule of Related Party Transactions | The following tables summarize revenues and expenses resulting from transactions with TD and its affiliates for the fiscal years indicated (dollars in millions): Description Statement of Income Classification Revenues from TD and its Affiliates 2017 2016 2015 Insured Deposit Account Agreement Bank deposit account fees $ 1,101 $ 926 $ 839 Referral and Strategic Alliance Agreement Various 14 14 13 Mutual Fund Agreements Investment product fees 15 11 — Other Various 10 7 6 Total revenues $ 1,140 $ 958 $ 858 Description Statement of Income Classification Expenses to TD and its Affiliates 2017 2016 2015 Canadian Call Center Services Agreement (1) Various $ 11 $ 22 $ 18 Other Various 1 3 4 Total expenses $ 12 $ 25 $ 22 (1) On September 30, 2016, the Company notified TD of its intent to not extend or renew the Canadian Call Center Services Agreement. Services with the Canadian Call Center ended by September 30, 2017 . The following table summarizes the classification and amount of receivables from and payables to TD and its affiliates on the Consolidated Balance Sheets resulting from related party transactions (dollars in millions): September 30, 2017 2016 Assets: Receivable from affiliates $ 110 $ 106 Liabilities: Payable to brokers, dealers and clearing organizations $ 37 $ 72 Payable to affiliates 38 9 |
Condensed Financial Informati49
Condensed Financial Information (Parent Company Only) (Tables) | 12 Months Ended |
Sep. 30, 2017 | |
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |
Schedule of Condensed Balance Sheets (Parent Company Only) | PARENT COMPANY ONLY CONDENSED BALANCE SHEETS As of September 30, 2017 and 2016 2017 2016 (In millions) ASSETS Cash and cash equivalents $ 154 $ 248 Receivable from subsidiaries 6 8 Investments available-for-sale, at fair value 746 757 Investments in subsidiaries 9,043 5,894 Other, net 108 163 Total assets $ 10,057 $ 7,070 LIABILITIES AND STOCKHOLDERS' EQUITY Liabilities: Accounts payable and other liabilities $ 104 $ 171 Payable to subsidiaries and affiliates 54 31 Securities sold under agreements to repurchase 97 — Long-term debt 2,555 1,817 Total liabilities 2,810 2,019 Stockholders' equity 7,247 5,051 Total liabilities and stockholders' equity $ 10,057 $ 7,070 |
Schedule of Condensed Statements of Income (Parent Company Only) | PARENT COMPANY ONLY CONDENSED STATEMENTS OF INCOME For the Years Ended September 30, 2017 , 2016 and 2015 2017 2016 2015 (In millions) Net revenues $ 31 $ 30 $ 17 Operating expenses 34 26 16 Operating income (loss) (3 ) 4 1 Other expense 71 53 43 Loss before income taxes and equity in income of subsidiaries (74 ) (49 ) (42 ) Provision for (benefit from) income taxes (22 ) 6 (16 ) Loss before equity in income of subsidiaries (52 ) (55 ) (26 ) Equity in income of subsidiaries 924 897 839 Net income $ 872 $ 842 $ 813 |
Schedule of Condensed Statements of Cash Flows (Parent Company Only) | PARENT COMPANY ONLY CONDENSED STATEMENTS OF CASH FLOWS For the Years Ended September 30, 2017 , 2016 and 2015 2017 2016 2015 (In millions) Cash flows from operating activities: Net income $ 872 $ 842 $ 813 Adjustments to reconcile net income to net cash flows provided by operating activities: Equity in income of subsidiaries (924 ) (897 ) (839 ) Deferred income taxes (12 ) — (1 ) Dividends from subsidiaries 1,230 825 985 Stock-based compensation 36 34 36 Other 9 8 9 Changes in operating assets and liabilities: Receivable from subsidiaries 2 (3 ) 5 Other assets — 1 44 Accounts payable and other liabilities (67 ) 38 (40 ) Payable to subsidiaries and affiliates (4 ) 26 — Net cash provided by operating activities 1,142 874 1,012 Cash flows from investing activities: Investment in subsidiaries (15 ) (60 ) (40 ) Cash paid in business acquisition (1,698 ) — — Proceeds from sale and maturity of short-term investments — 600 500 Purchase of short-term investments — (601 ) (502 ) Purchase of investments available-for-sale, at fair value — (757 ) — Proceeds from sale of investments — — 1 Net cash used in investing activities (1,713 ) (818 ) (41 ) Cash flows from financing activities: Proceeds from issuance of long-term debt 798 — 1,248 Payment of debt issuance costs (8 ) — (11 ) Principal payments on long-term debt (385 ) — (569 ) Payment of prepayment premium on long-term debt (54 ) — — Proceeds from securities sold under agreements to repurchase 97 — — Principal payments on notes payable — — (150 ) Payment of cash dividends (379 ) (362 ) (326 ) Proceeds from issuance of common stock 400 — — Purchase of treasury stock — (352 ) (364 ) Purchase of treasury stock for income tax withholding on stock-based compensation (27 ) (30 ) (23 ) Other, net 35 16 27 Net cash provided by (used in) financing activities 477 (728 ) (168 ) Net increase (decrease) in cash and cash equivalents (94 ) (672 ) 803 Cash and cash equivalents at beginning of year 248 920 117 Cash and cash equivalents at end of year $ 154 $ 248 $ 920 Supplemental cash flow information: Interest paid $ 50 $ 47 $ 23 Income taxes paid $ 452 $ 488 $ 471 Noncash investing activities: Issuance of common stock in acquisition $ 1,261 $ — $ — Assets transferred to a subsidiary $ 15 $ — $ — |
Quarterly Data (Unaudited) (Tab
Quarterly Data (Unaudited) (Tables) | 12 Months Ended |
Sep. 30, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Quarterly Financial Data | (Dollars in millions, except per share amounts) For the Fiscal Year Ended September 30, 2017 First Quarter Second Quarter Third Fourth Net revenues $ 859 $ 904 $ 931 $ 983 Operating income $ 353 $ 358 $ 394 $ 361 Net income $ 216 $ 214 $ 231 $ 211 Basic earnings per share $ 0.41 $ 0.41 $ 0.44 $ 0.40 Diluted earnings per share $ 0.41 $ 0.40 $ 0.44 $ 0.39 For the Fiscal Year Ended September 30, 2016 First Quarter Second Quarter Third Quarter Fourth Net revenues $ 812 $ 846 $ 838 $ 829 Operating income $ 343 $ 343 $ 348 $ 283 Net income $ 212 $ 205 $ 240 $ 185 Basic earnings per share $ 0.39 $ 0.38 $ 0.45 $ 0.35 Diluted earnings per share $ 0.39 $ 0.38 $ 0.45 $ 0.35 Quarterly amounts may not sum to fiscal year totals due to rounding. |
Nature of Operations and Summ51
Nature of Operations and Summary of Significant Accounting Policies - Additional Information (Detail) - USD ($) shares in Millions | 12 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | |
Cash and Cash Equivalents | |||
Maturity period of cash equivalents (three months or less) | 3 months | ||
Cash and Investments Segregated and on Deposit for Regulatory Purposes | |||
General maturity of reverse repurchase agreements, collateralized by U.S. Treasury securities | 7 days | ||
Investments Available-for-sale | |||
Available-for-sale securities, unrealized gain (loss) | $ 0 | $ 0 | |
Goodwill and Amortization of Acquired Intangible Assets | |||
Amount of impairment charges resulting from the annual goodwill impairment tests | 0 | 0 | $ 0 |
Long-Lived Assets and Acquired Intangible Assets | |||
Property and equipment, net | 752,000,000 | 526,000,000 | |
Amount of impairment charges resulting from the annual intangible assets impairment tests | $ 0 | $ 0 | $ 0 |
Transaction-based Revenues | |||
Client securities transactions, trade settlement, number of business days | 2 days | ||
Earnings Per Share | |||
Antidilutive awards excluded from calculation of diluted earnings per share (in shares) | 0 | 0.4 | 0 |
Minimum [Member] | |||
Investments Available-for-sale | |||
Available-for-sale debt maturities, in years | 1 year | ||
Goodwill and Amortization of Acquired Intangible Assets | |||
Estimated useful life, intangible assets | 7 months | ||
Income Taxes | |||
Percent likelihood for tax benefit amounts to be realized upon settlement | 50.00% | ||
Maximum [Member] | |||
Investments Available-for-sale | |||
Available-for-sale debt maturities, in years | 5 years | ||
Goodwill and Amortization of Acquired Intangible Assets | |||
Estimated useful life, intangible assets | 23 years | ||
Long Lived Assets Held-for-sale [Member] | |||
Long-Lived Assets and Acquired Intangible Assets | |||
Property and equipment, net | $ 5,000,000 | $ 0 | |
Building and Building Components [Member] | Minimum [Member] | |||
Property and Equipment | |||
Estimated useful life, property and equipment | 7 years | ||
Building and Building Components [Member] | Maximum [Member] | |||
Property and Equipment | |||
Estimated useful life, property and equipment | 40 years | ||
Other Depreciable Property and Equipment [Member] | Minimum [Member] | |||
Property and Equipment | |||
Estimated useful life, property and equipment | 3 years | ||
Other Depreciable Property and Equipment [Member] | Maximum [Member] | |||
Property and Equipment | |||
Estimated useful life, property and equipment | 7 years |
Business Acquisition - Provisio
Business Acquisition - Provisional Purchase Price for Acquisition (Detail) - Scottrade [Member] $ / shares in Units, $ in Millions | Sep. 18, 2017USD ($)$ / sharesshares |
Business Acquisition [Line Items] | |
TD Ameritrade Holding Corporation common stock issued to the Riney Stockholder and the Escrow Account | $ 1,261 |
Cash paid at closing | 3,073 |
Total purchase price | 4,334 |
Bank merger consideration amount paid by TD Bank, NA to Scottrade | $ 1,380 |
Riney Stockholder [Member] | Common Stock [Member] | |
Business Acquisition [Line Items] | |
Equity interests issued in connection with the acquisition, number of shares, total | shares | 27,685,493 |
Equity interests issued in connection with the acquisition, share price | $ / shares | $ 45.55 |
Equity interests issued in connection with the acquisition, number of shares, shares received | shares | 25,948,678 |
Equity interests issued in connection with the acquisition, number of shares, shares deposited in escrow | shares | 1,736,815 |
Business Acquisition - Provis53
Business Acquisition - Provisional Fair Values of Assets Acquired and Liabilities Assumed (Detail) - USD ($) $ in Millions | Sep. 30, 2017 | Sep. 18, 2017 | Sep. 30, 2016 |
Business Acquisition [Line Items] | |||
Goodwill | $ 4,213 | $ 2,467 | |
Scottrade [Member] | |||
Business Acquisition [Line Items] | |||
Cash and cash equivalents | $ 1,785 | ||
Cash and investments segregated and on deposit for regulatory purposes | 3,535 | ||
Receivable from brokers and dealers and clearing organizations | 167 | ||
Receivable from clients, net | 3,137 | ||
Receivable from affiliates | 29 | ||
Other receivables | 55 | ||
Securities owned | 37 | ||
Property and equipment | 133 | ||
Goodwill | 1,746 | ||
Acquired intangible assets | 974 | ||
Deferred tax assets | 75 | ||
Other assets | 35 | ||
Total assets acquired | 11,708 | ||
Payable to brokers and dealers and clearing organizations | (354) | ||
Payable to clients | (6,248) | ||
Accounts payable and other liabilities | (230) | ||
Payable to affiliates | (103) | ||
Long-term debt | (439) | ||
Total liabilities assumed | (7,374) | ||
Total provisional purchase price allocated | 4,334 | ||
Bank merger consideration amount paid by TD Bank, NA to Scottrade, included in Cash and cash equivalents | $ 1,380 | ||
Post-closing adjustments related to the Bank Merger Consideration, identified subsequent to the closing of the Acquisition and prior to the fiscal year ended September 30, 2017, included in Payable to affiliates | $ 27 | ||
Scottrade [Member] | Senior Notes [Member] | 6.125% Senior Notes [Member] | |||
Business Acquisition [Line Items] | |||
Interest rate, stated percentage, related to Scottrade long-term debt acquired | 6.125% | ||
Scottrade [Member] | Secured Debt [Member] | 6.18% Secured Loan [Member] | |||
Business Acquisition [Line Items] | |||
Interest rate, stated percentage, related to Scottrade long-term debt acquired | 6.18% |
Business Acquisition - Provis54
Business Acquisition - Provisional Estimated Fair Value and Weighted-Average Periods of Acquired Intangible Assets (Detail) - Scottrade [Member] $ in Millions | Sep. 18, 2017USD ($) |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Estimated Fair Value | $ 974 |
Weighted Average Estimated Amortization Period | 17 years 8 months 12 days |
Client relationships [Member] | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Estimated Fair Value | $ 955 |
Weighted Average Estimated Amortization Period | 18 years |
Trade names [Member] | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Estimated Fair Value | $ 10 |
Weighted Average Estimated Amortization Period | 1 year 3 months 18 days |
Technology [Member] | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Estimated Fair Value | $ 9 |
Weighted Average Estimated Amortization Period | 7 months 6 days |
Business Acquisition - Pro Form
Business Acquisition - Pro Forma Financial Information (Unaudited) (Detail) - Scottrade [Member] - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Pro Forma Financial Information (Unaudited): | ||
Pro forma net revenues | $ 4,586 | $ 4,158 |
Pro forma net income | $ 921 | $ 700 |
Pro forma basic earnings per share | $ 1.62 | $ 1.23 |
Pro forma diluted earnings per share | $ 1.62 | $ 1.22 |
Business Acquisition - Addition
Business Acquisition - Additional Information (Detail) $ / shares in Units, funded_client_accounts in Millions, $ in Millions | Sep. 30, 2017USD ($) | Sep. 18, 2017USD ($)funded_client_accountsbranch$ / sharesshares | Sep. 30, 2017USD ($) | Jun. 30, 2017USD ($) | Mar. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Sep. 30, 2016USD ($) | Jun. 30, 2016USD ($) | Mar. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Sep. 30, 2017USD ($)shares | Sep. 30, 2016USD ($) | Sep. 30, 2015USD ($) |
Business Acquisition [Line Items] | |||||||||||||
Stock issued, number of shares | shares | 11,000,000 | ||||||||||||
Stock issued, value of shares | $ 400 | ||||||||||||
Actual net revenues | $ 983 | $ 931 | $ 904 | $ 859 | $ 829 | $ 838 | $ 846 | $ 812 | 3,676 | $ 3,327 | $ 3,247 | ||
Actual net loss | $ 211 | $ 231 | $ 214 | $ 216 | $ 185 | $ 240 | $ 205 | $ 212 | $ 872 | 842 | $ 813 | ||
Senior Notes [Member] | 3.300% Notes due 2027 [Member] | |||||||||||||
Business Acquisition [Line Items] | |||||||||||||
Interest rate, stated percentage | 3.30% | 3.30% | 3.30% | ||||||||||
Debt issuance date | Apr. 27, 2017 | ||||||||||||
Scottrade [Member] | |||||||||||||
Business Acquisition [Line Items] | |||||||||||||
Effective date of acquisition | Sep. 18, 2017 | ||||||||||||
Date of Agreement and Plan of Merger agreement | Oct. 24, 2016 | ||||||||||||
Approximate number of branch locations acquired | branch | 500 | ||||||||||||
Approximate number of funded client accounts acquired | funded_client_accounts | 3 | ||||||||||||
Bank merger consideration amount paid by TD Bank, NA to Scottrade | $ 1,380 | ||||||||||||
Post-closing adjustments related to the Bank Merger Consideration, identified subsequent to the closing of the Acquisition and prior to the fiscal year ended September 30, 2017 | $ 27 | ||||||||||||
Effective date of Stockholders Agreement between TD Ameritrade and TD Bank | Jun. 22, 2005 | ||||||||||||
Cash paid at acquisition closing, subject to closing adjustments | $ 3,073 | ||||||||||||
Goodwill associated with the Acquisition, expected to be deductible for income tax purposes | 1,610 | ||||||||||||
Acquired intangible assets | $ 974 | ||||||||||||
Actual net revenues | $ 38 | ||||||||||||
Actual net loss | (11) | ||||||||||||
Transaction costs related to the acquisition primarily included in professional services on the Condensed Consolidated Statements of Income | $ 52 | $ 6 | |||||||||||
Scottrade [Member] | TD [Member] | Common Stock [Member] | |||||||||||||
Business Acquisition [Line Items] | |||||||||||||
Stock issued, number of shares | shares | 11,074,197 | ||||||||||||
Stock issued, price per share | $ / shares | $ 36.12 | ||||||||||||
Stock issued, value of shares | $ 400 | ||||||||||||
Scottrade [Member] | Riney Stockholder [Member] | Common Stock [Member] | |||||||||||||
Business Acquisition [Line Items] | |||||||||||||
Equity interests issued in connection with the acquisition, number of shares, total | shares | 27,685,493 | ||||||||||||
Equity interests issued in connection with the acquisition, number of shares, shares deposited in escrow | shares | 1,736,815 |
Cash and Cash Equivalents - Sum
Cash and Cash Equivalents - Summary of Cash and Cash Equivalents (Detail) - USD ($) $ in Millions | Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2014 |
Cash and Cash Equivalents [Line Items] | ||||
Cash and cash equivalents | $ 1,472 | $ 1,855 | $ 1,978 | $ 1,460 |
Broker-dealer subsidiaries [Member] | ||||
Cash and Cash Equivalents [Line Items] | ||||
Cash and cash equivalents | 997 | 1,153 | ||
Corporate [Member] | ||||
Cash and Cash Equivalents [Line Items] | ||||
Cash and cash equivalents | 279 | 460 | ||
Futures commission merchant and forex dealer member subsidiary [Member] | ||||
Cash and Cash Equivalents [Line Items] | ||||
Cash and cash equivalents | 98 | 125 | ||
Trust company subsidiary [Member] | ||||
Cash and Cash Equivalents [Line Items] | ||||
Cash and cash equivalents | 79 | 85 | ||
Investment advisory subsidiaries [Member] | ||||
Cash and Cash Equivalents [Line Items] | ||||
Cash and cash equivalents | $ 19 | $ 32 |
Cash and Investments Segregat58
Cash and Investments Segregated and on Deposit for Regulatory Purposes (Detail) - USD ($) $ in Millions | Sep. 30, 2017 | Sep. 30, 2016 |
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Cash and investments segregated and on deposit for regulatory purposes | $ 10,446 | $ 8,729 |
U.S. Government Debt Securities [Member] | ||
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Cash and investments segregated and on deposit for regulatory purposes | 4,019 | 6,523 |
Cash in Demand Deposit Accounts [Member] | ||
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Cash and investments segregated and on deposit for regulatory purposes | 3,653 | 657 |
U.S. Government Agency Mortgage-Backed Securities [Member] | ||
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Cash and investments segregated and on deposit for regulatory purposes | 1,486 | 0 |
Reverse Repurchase Agreements (collateralized by U.S. government debt securities) [Member] | ||
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Cash and investments segregated and on deposit for regulatory purposes | 1,004 | 1,288 |
Cash on Deposit with Futures Commission Merchants [Member] | ||
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Cash and investments segregated and on deposit for regulatory purposes | 209 | 186 |
U.S. Government Debt Securities on Deposit with Futures Commission Merchant [Member] | ||
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Cash and investments segregated and on deposit for regulatory purposes | $ 75 | $ 75 |
Receivable from and Payable t59
Receivable from and Payable to Brokers, Dealers and Clearing Organizations - Amounts Receivable from and Payable to Brokers, Dealers and Clearing Organizations (Detail) - USD ($) $ in Millions | Sep. 30, 2017 | Sep. 30, 2016 |
Receivable: | ||
Deposits paid for securities borrowed | $ 1,154 | $ 1,051 |
Clearing organizations | 151 | 116 |
Broker-dealers | 21 | 16 |
Securities failed to deliver | 8 | 7 |
Total | 1,334 | 1,190 |
Payable: | ||
Deposits received for securities loaned | 2,449 | 1,990 |
Clearing organizations | 32 | 27 |
Securities failed to receive | 21 | 21 |
Broker-dealers | 2 | 2 |
Total | $ 2,504 | $ 2,040 |
Allowance for Doubtful Accoun60
Allowance for Doubtful Accounts on Client and Other Receivables (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | |
Valuation and Qualifying Accounts [Abstract] | |||
Beginning balance | $ 9 | $ 12 | $ 10 |
Provision for doubtful accounts, net | 2 | 2 | 6 |
Acquired in business acquisition | 2 | 0 | 0 |
Write-off of doubtful accounts | (2) | (5) | (4) |
Ending balance | $ 11 | $ 9 | $ 12 |
Property and Equipment - Schedu
Property and Equipment - Schedule of Property and Equipment (Detail) - USD ($) $ in Millions | Sep. 30, 2017 | Sep. 30, 2016 |
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 1,270 | $ 986 |
Less: Accumulated depreciation and amortization | (518) | (460) |
Property and equipment at cost, net | 752 | 526 |
Building and building components [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 351 | 269 |
Computer equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 270 | 240 |
Software [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 215 | 187 |
Leasehold improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 173 | 159 |
Building construction in process [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 101 | 12 |
Land [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 77 | 44 |
Other property and equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 83 | $ 75 |
Goodwill and Acquired Intangi62
Goodwill and Acquired Intangible Assets - Changes in Carrying Amount of Goodwill (Detail) $ in Millions | 12 Months Ended |
Sep. 30, 2017USD ($) | |
Goodwill [Roll Forward] | |
Goodwill, beginning balance | $ 2,467 |
Goodwill recorded in acquisition of Scottrade (see Note 2) | 1,746 |
Goodwill, ending balance | $ 4,213 |
Goodwill and Acquired Intangi63
Goodwill and Acquired Intangible Assets - Acquired Intangible Assets (Detail) - USD ($) $ in Millions | Sep. 30, 2017 | Sep. 30, 2016 |
Acquired Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 2,447 | $ 1,473 |
Accumulated Amortization | (977) | (898) |
Net Carrying Amount | 1,470 | 575 |
Trade names [Member] | ||
Acquired Intangible Assets [Line Items] | ||
Gross Carrying Amount | 10 | 0 |
Accumulated Amortization | 0 | 0 |
Net Carrying Amount | 10 | 0 |
Trademark license [Member] | ||
Acquired Intangible Assets [Line Items] | ||
Gross Carrying Amount | 146 | 146 |
Accumulated Amortization | 0 | 0 |
Net Carrying Amount | 146 | 146 |
Client relationships [Member] | ||
Acquired Intangible Assets [Line Items] | ||
Gross Carrying Amount | 2,183 | 1,228 |
Accumulated Amortization | (877) | (799) |
Net Carrying Amount | 1,306 | 429 |
Technology and content [Member] | ||
Acquired Intangible Assets [Line Items] | ||
Gross Carrying Amount | 108 | 99 |
Accumulated Amortization | (100) | (99) |
Net Carrying Amount | $ 8 | $ 0 |
Goodwill and Acquired Intangi64
Goodwill and Acquired Intangible Assets - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Amortization expense on acquired intangible assets | $ 79 | $ 86 | $ 90 |
Goodwill and Acquired Intangi65
Goodwill and Acquired Intangible Assets - Estimated Future Amortization Expense for Acquired Intangible Assets (Detail) $ in Millions | Sep. 30, 2017USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
2,018 | $ 139 |
2,019 | 125 |
2,020 | 116 |
2,021 | 106 |
2,022 | 105 |
Thereafter (to 2035) | 733 |
Total | $ 1,324 |
Exit Liabilities - Summary of t
Exit Liabilities - Summary of the Activity in Exit Liabilities (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | |
Restructuring Reserve [Roll Forward] | |||
Beginning balance | $ 4 | ||
Exit liabilities assumed in business acquisition | 100 | ||
Costs incurred and charged to expense | 44 | $ 0 | $ 0 |
Costs paid or otherwise settled | (10) | ||
Ending balance | 138 | 4 | |
Employee Compensation and Benefits [Member] | |||
Restructuring Reserve [Roll Forward] | |||
Beginning balance | 4 | ||
Exit liabilities assumed in business acquisition | 100 | ||
Costs incurred and charged to expense | 43 | ||
Costs paid or otherwise settled | (9) | ||
Ending balance | 138 | 4 | |
Other [Member] | |||
Restructuring Reserve [Roll Forward] | |||
Beginning balance | 0 | ||
Exit liabilities assumed in business acquisition | 0 | ||
Costs incurred and charged to expense | 1 | ||
Costs paid or otherwise settled | (1) | ||
Ending balance | $ 0 | $ 0 |
Exit Liabilities - Additional I
Exit Liabilities - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | |
Restructuring Cost and Reserve [Line Items] | ||||
Exit liabilities recorded during the period | $ 44 | $ 0 | $ 0 | |
Scottrade [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Incurred pre-tax charges during the period | $ 35 | |||
Assumed liabilities from the Acquisition during the period | 100 | |||
Scottrade [Member] | Minimum [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Expected acquisition-related exit costs | 455 | 455 | ||
Scottrade [Member] | Maximum [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Expected acquisition-related exit costs | 545 | 545 | ||
Scottrade [Member] | Employee Severance and Other Termination Benefits [Member] | Minimum [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Expected acquisition-related exit costs | 300 | 300 | ||
Scottrade [Member] | Employee Severance and Other Termination Benefits [Member] | Maximum [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Expected acquisition-related exit costs | 320 | 320 | ||
Scottrade [Member] | Contract Termination [Member] | Minimum [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Expected acquisition-related exit costs | 155 | 155 | ||
Scottrade [Member] | Contract Termination [Member] | Maximum [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Expected acquisition-related exit costs | $ 225 | $ 225 |
Long-term Debt and Other Borr68
Long-term Debt and Other Borrowings - Schedule of Long-term Debt and Other Borrowings (Detail) - USD ($) $ in Millions | Sep. 30, 2017 | Sep. 30, 2016 | Oct. 17, 2014 |
Debt Instrument [Line Items] | |||
Face Value | $ 2,647 | $ 1,750 | |
Unamortized Discounts and Debt Issuance Costs | (18) | (12) | |
Fair Value Adjustment | 23 | 79 | |
Net Carrying Value | 2,652 | 1,817 | |
Senior Notes [Member] | |||
Debt Instrument [Line Items] | |||
Face Value | 2,550 | ||
Unamortized Discounts and Debt Issuance Costs | (18) | ||
Fair Value Adjustment | 23 | ||
Net Carrying Value | 2,555 | ||
Senior Notes [Member] | 5.600% Notes due 2019 [Member] | |||
Debt Instrument [Line Items] | |||
Face Value | 500 | 500 | |
Unamortized Discounts and Debt Issuance Costs | (1) | (2) | |
Fair Value Adjustment | 15 | 33 | |
Net Carrying Value | 514 | 531 | |
Senior Notes [Member] | 2.950% Notes due 2022 [Member] | |||
Debt Instrument [Line Items] | |||
Face Value | 750 | 750 | |
Unamortized Discounts and Debt Issuance Costs | (5) | (6) | |
Fair Value Adjustment | 0 | 0 | |
Net Carrying Value | 745 | 744 | |
Senior Notes [Member] | 3.625% Notes due 2025 [Member] | |||
Debt Instrument [Line Items] | |||
Face Value | 500 | 500 | $ 500 |
Unamortized Discounts and Debt Issuance Costs | (3) | (4) | |
Fair Value Adjustment | 11 | 46 | |
Net Carrying Value | 508 | $ 542 | |
Senior Notes [Member] | 3.300% Notes due 2027 [Member] | |||
Debt Instrument [Line Items] | |||
Face Value | 800 | ||
Unamortized Discounts and Debt Issuance Costs | (9) | ||
Fair Value Adjustment | (3) | ||
Net Carrying Value | 788 | ||
Securities Sold Under Agreements to Repurchase [Member] | |||
Debt Instrument [Line Items] | |||
Face Value | 97 | ||
Unamortized Discounts and Debt Issuance Costs | 0 | ||
Fair Value Adjustment | 0 | ||
Net Carrying Value | $ 97 |
Long-term Debt and Other Borr69
Long-term Debt and Other Borrowings - Fiscal Year Maturities on Long-term Debt Outstanding (Detail) $ in Millions | Sep. 30, 2017USD ($) |
Debt Disclosure [Abstract] | |
2,018 | $ 0 |
2,019 | 0 |
2,020 | 500 |
2,021 | 0 |
2,022 | 750 |
Thereafter | 1,300 |
Total | $ 2,550 |
Long-term Debt and Other Borr70
Long-term Debt and Other Borrowings - Summary of Senior Notes (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Oct. 17, 2014 | |
Debt Instrument [Line Items] | |||
Aggregate Principal | $ 2,647 | $ 1,750 | |
Senior Notes [Member] | |||
Debt Instrument [Line Items] | |||
Aggregate Principal | $ 2,550 | ||
Senior Notes [Member] | 2019 Notes [Member] | |||
Debt Instrument [Line Items] | |||
Date Issued | Nov. 25, 2009 | ||
Maturity Date | Dec. 1, 2019 | ||
Aggregate Principal | $ 500 | 500 | |
Interest Rate | 5.60% | ||
Senior Notes [Member] | 2022 Notes [Member] | |||
Debt Instrument [Line Items] | |||
Date Issued | Mar. 4, 2015 | ||
Maturity Date | Apr. 1, 2022 | ||
Aggregate Principal | $ 750 | 750 | |
Interest Rate | 2.95% | ||
Senior Notes [Member] | 2025 Notes [Member] | |||
Debt Instrument [Line Items] | |||
Date Issued | Oct. 17, 2014 | ||
Maturity Date | Apr. 1, 2025 | ||
Aggregate Principal | $ 500 | $ 500 | $ 500 |
Interest Rate | 3.625% | ||
Senior Notes [Member] | 2027 Notes [Member] | |||
Debt Instrument [Line Items] | |||
Date Issued | Apr. 27, 2017 | ||
Maturity Date | Apr. 1, 2027 | ||
Aggregate Principal | $ 800 | ||
Interest Rate | 3.30% |
Long-term Debt and Other Borr71
Long-term Debt and Other Borrowings - Senior Notes, Securities Sold Under Agreements to Repurchase and Secured Loan - Additional Information (Detail) - USD ($) | 12 Months Ended | ||||
Sep. 30, 2017 | Sep. 30, 2015 | Sep. 30, 2016 | Oct. 17, 2014 | Sep. 15, 2014 | |
Debt Instrument [Line Items] | |||||
Debt instrument, face value | $ 2,647,000,000 | $ 1,750,000,000 | |||
Securities Sold Under Agreements to Repurchase [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, face value | $ 97,000,000 | ||||
Debt instrument, maturity date | Dec. 15, 2017 | ||||
Debt instrument, offering date | Sep. 15, 2017 | ||||
Debt instrument, cash received from the counterparty | $ 97,000,000 | ||||
Debt instrument, effective interest rate | 1.25% | ||||
Debt instrument, date to be repurchased | Dec. 15, 2017 | ||||
Debt instrument, face value of collateral to be repurchased on December 15, 2017 | $ 97,000,000 | ||||
Securities Sold Under Agreements to Repurchase [Member] | LIBOR [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, description of basis spread on variable rate | one-month LIBOR, plus an interest rate margin of two basis points | ||||
Debt instrument, basis spread on variable rate | 0.02% | ||||
Senior Notes [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, face value | $ 2,550,000,000 | ||||
Senior Notes [Member] | 4.150% Notes due 2014 [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, face value | $ 500,000,000 | ||||
Interest rate, stated percentage | 4.15% | ||||
Debt instrument, maturity date | Dec. 1, 2014 | ||||
Senior Notes [Member] | 5.600% Notes due 2019 [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, face value | $ 500,000,000 | 500,000,000 | |||
Interest rate, stated percentage | 5.60% | ||||
Debt instrument, maturity date | Dec. 1, 2019 | ||||
Debt instrument, redemption price, percentage | 100.00% | ||||
Debt instrument, redemption price, basis spread added to U.S. Treasury rate | 0.35% | ||||
Senior Notes [Member] | Senior Notes Due 2022, 2025 and 2027 [Member] | Time period prior to specified redemption date [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, redemption price, percentage | 100.00% | ||||
Senior Notes [Member] | Senior Notes Due 2022, 2025 and 2027 [Member] | Time period on or after specified redemption date [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, redemption price, percentage | 100.00% | ||||
Senior Notes [Member] | 2.950% Notes due 2022 [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, face value | $ 750,000,000 | 750,000,000 | |||
Interest rate, stated percentage | 2.95% | ||||
Debt instrument, maturity date | Apr. 1, 2022 | ||||
Senior Notes [Member] | 2.950% Notes due 2022 [Member] | Time period prior to specified redemption date [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, redemption, date that determines redemption price | Feb. 1, 2022 | ||||
Debt instrument, redemption price, basis spread added to U.S. Treasury rate | 0.15% | ||||
Senior Notes [Member] | 2.950% Notes due 2022 [Member] | Time period on or after specified redemption date [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, redemption, date that determines redemption price | Feb. 1, 2022 | ||||
Senior Notes [Member] | 3.625% Notes due 2025 [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, face value | $ 500,000,000 | $ 500,000,000 | $ 500,000,000 | ||
Interest rate, stated percentage | 3.625% | ||||
Debt instrument, maturity date | Apr. 1, 2025 | ||||
Senior Notes [Member] | 3.625% Notes due 2025 [Member] | Time period prior to specified redemption date [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, redemption, date that determines redemption price | Jan. 1, 2025 | ||||
Debt instrument, redemption price, basis spread added to U.S. Treasury rate | 0.25% | ||||
Senior Notes [Member] | 3.625% Notes due 2025 [Member] | Time period on or after specified redemption date [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, redemption, date that determines redemption price | Jan. 1, 2025 | ||||
Senior Notes [Member] | 3.300% Notes due 2027 [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, face value | $ 800,000,000 | ||||
Interest rate, stated percentage | 3.30% | ||||
Debt instrument, maturity date | Apr. 1, 2027 | ||||
Senior Notes [Member] | 3.300% Notes due 2027 [Member] | Time period prior to specified redemption date [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, redemption, date that determines redemption price | Jan. 1, 2027 | ||||
Debt instrument, redemption price, basis spread added to U.S. Treasury rate | 0.20% | ||||
Senior Notes [Member] | 3.300% Notes due 2027 [Member] | Time period on or after specified redemption date [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, redemption, date that determines redemption price | Jan. 1, 2027 | ||||
Secured Loan [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, face value | $ 69,000,000 | ||||
TD Ameritrade Holding Corporation [Member] | Senior Unsecured Revolving Credit Facility [Member] | |||||
Debt Instrument [Line Items] | |||||
Credit facility, expiration date | Apr. 21, 2022 | ||||
TD Ameritrade Holding Corporation [Member] | Prior Senior Unsecured Revolving Credit Facility [Member] | |||||
Debt Instrument [Line Items] | |||||
Credit facility, expiration date | Apr. 21, 2017 |
Long-term Debt and Other Borr72
Long-term Debt and Other Borrowings - Fair Value Hedging - Additional Information (Detail) - Senior Notes [Member] - USD ($) $ in Millions | Oct. 05, 2017 | Sep. 30, 2017 |
2019, 2025 and 2027 Senior Notes [Member] | ||
Debt Instrument [Line Items] | ||
Weighted-average effective interest rate | 2.68% | |
2019, 2025 and 2027 Senior Notes [Member] | LIBOR [Member] | Pay Variable Interest Rate Swap [Member] | ||
Debt Instrument [Line Items] | ||
Debt instrument, description of basis spread on variable rate | three-month LIBOR | |
5.600% Notes due 2019 [Member] | LIBOR [Member] | Pay Variable Interest Rate Swap [Member] | ||
Debt Instrument [Line Items] | ||
Derivative, basis spread on variable rate, percentage | 2.3745% | |
3.625% Notes due 2025 [Member] | LIBOR [Member] | Pay Variable Interest Rate Swap [Member] | ||
Debt Instrument [Line Items] | ||
Derivative, basis spread on variable rate, percentage | 1.1022% | |
3.300% Notes due 2027 [Member] | LIBOR [Member] | Pay Variable Interest Rate Swap [Member] | ||
Debt Instrument [Line Items] | ||
Derivative, basis spread on variable rate, percentage | 1.034% | |
2022 Notes [Member] | Pay Variable Interest Rate Swap [Member] | Subsequent Event [Member] | ||
Debt Instrument [Line Items] | ||
Notional amount | $ 750 | |
2022 Notes [Member] | LIBOR [Member] | Pay Variable Interest Rate Swap [Member] | Subsequent Event [Member] | ||
Debt Instrument [Line Items] | ||
Debt instrument, description of basis spread on variable rate | three-month LIBOR | |
Derivative, basis spread on variable rate, percentage | 0.9486% |
Long-term Debt and Other Borr73
Long-term Debt and Other Borrowings - Gains and Losses Resulting from Changes in Fair Value of Interest Rate Swaps and Hedged Fixed Rate Debt (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | |
Debt Disclosure [Abstract] | |||
Gain (loss) on fair value of interest rate swaps | $ (56) | $ 16 | $ 31 |
Gain (loss) on fair value of hedged fixed-rate debt | 56 | (16) | (31) |
Net gain (loss) recorded in interest on borrowings | $ 0 | $ 0 | $ 0 |
Long-term Debt and Other Borr74
Long-term Debt and Other Borrowings - Cash Flow Hedging - Additional Information (Details) - USD ($) $ in Millions | Oct. 17, 2014 | Jan. 17, 2014 | Sep. 30, 2017 | Sep. 30, 2016 |
Debt Instrument [Line Items] | ||||
Debt instrument, face value | $ 2,647 | $ 1,750 | ||
Forward Starting Interest Rate Swap [Member] | ||||
Debt Instrument [Line Items] | ||||
Derivative, inception date | Jan. 17, 2014 | |||
Derivative, notional amount | $ 500 | |||
Derivative, amount paid to settle contract | $ 45 | |||
Loss on cash flow hedge ineffectiveness | 0.5 | |||
Amount of interest rate cash flow hedge gain (loss) to be reclassified during next 12 months, net | (4.4) | |||
Senior Notes [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, face value | 2,550 | |||
Senior Notes [Member] | 3.625% Notes due 2025 [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, face value | $ 500 | $ 500 | $ 500 |
Long-term Debt and Other Borr75
Long-term Debt and Other Borrowings - Effective Portion of Cash Flow Hedge (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | |
Forward Starting Interest Rate Swap [Member] | |||
Debt Instrument [Line Items] | |||
Amount of Loss Recognized in Other Comprehensive Income (Loss) (Effective Portion) | $ 0 | $ 0 | $ (15) |
Long-term Debt and Other Borr76
Long-term Debt and Other Borrowings - Fair Value of Outstanding Derivatives Designated as Hedging Instruments (Detail) - Pay Variable Interest Rate Swap [Member] - USD ($) $ in Millions | Sep. 30, 2017 | Sep. 30, 2016 |
Other assets [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of outstanding derivative assets designated as hedging instruments in the Consolidated Balance Sheets | $ 26 | $ 79 |
Accounts payable and other liabilities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of outstanding derivative liabilities designated as hedging instruments in the Consolidated Balance Sheets | $ (3) | $ 0 |
Long-term Debt and Other Borr77
Long-term Debt and Other Borrowings - Balance Sheet Impact of Hedging Instruments - Additional Information (Details) - Pay Variable Interest Rate Swap [Member] - Cash [Member] - USD ($) $ in Millions | Sep. 30, 2017 | Sep. 30, 2016 |
Debt Instrument [Line Items] | ||
Pledged collateral from interest rate swap counterparty, aggregate fair value | $ 40 | $ 93 |
Pledged collateral to interest rate swap counterparty, aggregate fair value | $ 1 |
Long-term Debt and Other Borr78
Long-term Debt and Other Borrowings - Credit Agreements - Additional Information (Detail) - USD ($) | 12 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Intercompany Credit Agreements [Member] | ||
Debt Instrument [Line Items] | ||
Notes payable, borrowings outstanding | $ 0 | $ 0 |
TD Ameritrade Holding Corporation [Member] | Senior Unsecured Revolving Credit Facility [Member] | ||
Debt Instrument [Line Items] | ||
Credit facility, initiation date | Apr. 21, 2017 | |
Credit facility, maximum borrowing capacity | $ 300,000,000 | |
Credit facility, expiration date | Apr. 21, 2022 | |
Credit facility, commitment fee percentage | 0.125% | |
Notes payable, borrowings outstanding | $ 0 | |
TD Ameritrade Holding Corporation [Member] | Senior Unsecured Revolving Credit Facility [Member] | Minimum [Member] | ||
Debt Instrument [Line Items] | ||
Credit facility, commitment fee percentage | 0.08% | |
TD Ameritrade Holding Corporation [Member] | Senior Unsecured Revolving Credit Facility [Member] | Maximum [Member] | ||
Debt Instrument [Line Items] | ||
Credit facility, commitment fee percentage | 0.20% | |
TD Ameritrade Holding Corporation [Member] | Senior Unsecured Revolving Credit Facility [Member] | Eurodollar Loans [Member] | ||
Debt Instrument [Line Items] | ||
Debt instrument, basis spread on variable rate | 1.125% | |
TD Ameritrade Holding Corporation [Member] | Senior Unsecured Revolving Credit Facility [Member] | Eurodollar Loans [Member] | Minimum [Member] | ||
Debt Instrument [Line Items] | ||
Debt instrument, basis spread on variable rate | 0.875% | |
TD Ameritrade Holding Corporation [Member] | Senior Unsecured Revolving Credit Facility [Member] | Eurodollar Loans [Member] | Maximum [Member] | ||
Debt Instrument [Line Items] | ||
Debt instrument, basis spread on variable rate | 1.50% | |
TD Ameritrade Holding Corporation [Member] | Senior Unsecured Revolving Credit Facility [Member] | ABR Loans [Member] | ||
Debt Instrument [Line Items] | ||
Debt instrument, basis spread on variable rate | 0.125% | |
TD Ameritrade Holding Corporation [Member] | Senior Unsecured Revolving Credit Facility [Member] | ABR Loans [Member] | Minimum [Member] | ||
Debt Instrument [Line Items] | ||
Debt instrument, basis spread on variable rate | 0.00% | |
TD Ameritrade Holding Corporation [Member] | Senior Unsecured Revolving Credit Facility [Member] | ABR Loans [Member] | Maximum [Member] | ||
Debt Instrument [Line Items] | ||
Debt instrument, basis spread on variable rate | 0.50% | |
TD Ameritrade Holding Corporation [Member] | Senior Unsecured Revolving Credit Facility [Member] | ABR Loans [Member] | Federal Funds Effective Rate [Member] | ||
Debt Instrument [Line Items] | ||
Debt instrument, basis spread on variable rate | 0.50% | |
TD Ameritrade Holding Corporation [Member] | Senior Unsecured Revolving Credit Facility [Member] | ABR Loans [Member] | Eurodollar [Member] | ||
Debt Instrument [Line Items] | ||
Debt instrument, basis spread on variable rate | 1.00% | |
TD Ameritrade Holding Corporation [Member] | Prior Senior Unsecured Revolving Credit Facility [Member] | ||
Debt Instrument [Line Items] | ||
Credit facility, maximum borrowing capacity | $ 300,000,000 | |
Credit facility, scheduled expiration date | Jun. 11, 2019 | |
Credit facility, expiration date | Apr. 21, 2017 | |
Notes payable, borrowings outstanding | 0 | |
TD Ameritrade Clearing, Inc [Member] | Senior Unsecured Revolving Credit Facility [Member] | ||
Debt Instrument [Line Items] | ||
Credit facility, initiation date | Apr. 21, 2017 | |
Credit facility, maximum borrowing capacity | $ 600,000,000 | |
Credit facility, expiration date | Apr. 21, 2022 | |
Credit facility, commitment fee percentage | 0.10% | |
Notes payable, borrowings outstanding | $ 0 | |
TD Ameritrade Clearing, Inc [Member] | Senior Unsecured Revolving Credit Facility [Member] | Minimum [Member] | ||
Debt Instrument [Line Items] | ||
Credit facility, commitment fee percentage | 0.07% | |
TD Ameritrade Clearing, Inc [Member] | Senior Unsecured Revolving Credit Facility [Member] | Maximum [Member] | ||
Debt Instrument [Line Items] | ||
Credit facility, commitment fee percentage | 0.175% | |
TD Ameritrade Clearing, Inc [Member] | Senior Unsecured Revolving Credit Facility [Member] | Eurodollar Loans [Member] | ||
Debt Instrument [Line Items] | ||
Debt instrument, basis spread on variable rate | 1.00% | |
TD Ameritrade Clearing, Inc [Member] | Senior Unsecured Revolving Credit Facility [Member] | Eurodollar Loans [Member] | Minimum [Member] | ||
Debt Instrument [Line Items] | ||
Debt instrument, basis spread on variable rate | 0.75% | |
TD Ameritrade Clearing, Inc [Member] | Senior Unsecured Revolving Credit Facility [Member] | Eurodollar Loans [Member] | Maximum [Member] | ||
Debt Instrument [Line Items] | ||
Debt instrument, basis spread on variable rate | 1.25% | |
TD Ameritrade Clearing, Inc [Member] | Senior Unsecured Revolving Credit Facility [Member] | Federal Funds Rate Loans [Member] | ||
Debt Instrument [Line Items] | ||
Debt instrument, basis spread on variable rate | 1.00% | |
TD Ameritrade Clearing, Inc [Member] | Senior Unsecured Revolving Credit Facility [Member] | Federal Funds Rate Loans [Member] | Minimum [Member] | ||
Debt Instrument [Line Items] | ||
Debt instrument, basis spread on variable rate | 0.75% | |
TD Ameritrade Clearing, Inc [Member] | Senior Unsecured Revolving Credit Facility [Member] | Federal Funds Rate Loans [Member] | Maximum [Member] | ||
Debt Instrument [Line Items] | ||
Debt instrument, basis spread on variable rate | 1.25% | |
TD Ameritrade Clearing, Inc [Member] | Prior Senior Unsecured Revolving Credit Facility [Member] | ||
Debt Instrument [Line Items] | ||
Credit facility, maximum borrowing capacity | $ 300,000,000 | |
Credit facility, scheduled expiration date | Jun. 11, 2019 | |
Notes payable, borrowings outstanding | 0 | |
TD Ameritrade Clearing, Inc [Member] | Intercompany Credit Agreements [Member] | ||
Debt Instrument [Line Items] | ||
Credit facility, expiration date | Mar. 1, 2022 | |
TD Ameritrade Clearing, Inc [Member] | Committed Intercompany Credit Facility [Member] | ||
Debt Instrument [Line Items] | ||
Credit facility, maximum borrowing capacity | $ 400,000,000 | |
TD Ameritrade Clearing, Inc [Member] | Uncommitted Intercompany Credit Facility [Member] | ||
Debt Instrument [Line Items] | ||
Credit facility, maximum borrowing capacity | $ 300,000,000 | |
TD Ameritrade, Inc [Member] | Intercompany Credit Agreements [Member] | ||
Debt Instrument [Line Items] | ||
Credit facility, expiration date | Mar. 1, 2022 | |
TD Ameritrade, Inc [Member] | Uncommitted Intercompany Credit Facility [Member] | ||
Debt Instrument [Line Items] | ||
Credit facility, maximum borrowing capacity | $ 300,000,000 | |
Scottrade, Inc. [Member] | Intercompany Credit Agreements [Member] | ||
Debt Instrument [Line Items] | ||
Credit facility, initiation date | Sep. 18, 2017 | |
Credit facility, expiration date | Mar. 1, 2022 | |
Scottrade, Inc. [Member] | Committed Intercompany Credit Facility [Member] | ||
Debt Instrument [Line Items] | ||
Credit facility, maximum borrowing capacity | $ 300,000,000 | |
Scottrade, Inc. [Member] | Uncommitted Intercompany Credit Facility [Member] | ||
Debt Instrument [Line Items] | ||
Credit facility, maximum borrowing capacity | $ 300,000,000 | |
TD Ameritrade Futures & Forex LLC [Member] | Intercompany Credit Agreements [Member] | ||
Debt Instrument [Line Items] | ||
Credit facility, expiration date | Aug. 11, 2021 | |
Debt instrument, term | 5 years | |
Credit facility, renewal period, minimum number of days for notice of intent to terminate | 30 days | |
TD Ameritrade Futures & Forex LLC [Member] | Committed Intercompany Credit Facility [Member] | ||
Debt Instrument [Line Items] | ||
Credit facility, maximum borrowing capacity | $ 22,500,000 | $ 22,500,000 |
Credit facility, maximum borrowing percentage of residual interest target | 75.00% |
Income Taxes - Provision for In
Income Taxes - Provision for Income Taxes (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | |
Current expense (benefit): | |||
Federal | $ 484 | $ 435 | $ 470 |
State | 49 | (4) | 28 |
Total | 533 | 431 | 498 |
Deferred expense (benefit): | |||
Federal | (11) | (5) | (22) |
State | 0 | (3) | (1) |
Total | (11) | (8) | (23) |
Provision for income taxes | $ 522 | $ 423 | $ 475 |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of Federal Statutory Tax Rate to Effective Tax Rate (Detail) | 12 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | |
Income Tax Disclosure [Abstract] | |||
Federal statutory rate | 35.00% | 35.00% | 35.00% |
State taxes, net of federal tax effect | 2.80% | 2.80% | 3.00% |
Adjustments to estimated state income taxes | 0.00% | (0.20%) | 0.10% |
Federal incentives | (0.30%) | (1.40%) | 0.00% |
Interest recorded (reversed) on unrecognized tax benefits, net | 0.20% | (1.10%) | (0.10%) |
Reversal of accruals for unrecognized tax benefits | (0.40%) | (1.80%) | (1.10%) |
Other | 0.10% | 0.10% | 0.00% |
Effective income tax rate | 37.40% | 33.40% | 36.90% |
Income Taxes - Deferred Tax Ass
Income Taxes - Deferred Tax Assets (Liabilities) (Detail) - USD ($) $ in Millions | Sep. 30, 2017 | Sep. 30, 2016 |
Deferred tax assets: | ||
Accrued and other liabilities | $ 131 | $ 62 |
Stock-based compensation | 28 | 36 |
Unrealized loss on cash flow hedging instruments | 15 | 13 |
Allowance for doubtful accounts | 6 | 5 |
Intangible assets, state tax benefit | 5 | 7 |
Operating loss carryforwards | 1 | 3 |
Gross deferred tax assets | 186 | 126 |
Less: Valuation allowance | (1) | (2) |
Net deferred tax assets | 185 | 124 |
Deferred tax liabilities: | ||
Acquired intangible assets | (331) | (364) |
Property and equipment | (35) | (36) |
Prepaid expenses | (11) | (5) |
Other deferred tax liabilities | (1) | 0 |
Total deferred tax liabilities | (378) | (405) |
Net deferred tax liabilities | $ (193) | $ (281) |
Income Taxes - Reconciliation82
Income Taxes - Reconciliation of Activity Related to Unrecognized Tax Benefits (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | |
Income Tax Disclosure [Abstract] | |||
Beginning balance | $ 142 | $ 154 | $ 165 |
Additions based on tax positions related to the current year | 28 | 30 | 16 |
Additions for tax positions of prior years | 0 | 20 | 5 |
Reductions for tax positions of prior years | (10) | (33) | (4) |
Reductions due to settlements with taxing authorities | (1) | (21) | (21) |
Reductions due to lapsed statute of limitations | (7) | (8) | (7) |
Ending balance | $ 152 | $ 142 | $ 154 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | |||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2014 | |
Income Taxes [Line Items] | ||||
Effective income tax rate | 37.40% | 33.40% | 36.90% | |
Net favorable resolutions of state income tax matters | $ 8 | $ 22 | ||
Favorable tax benefits for federal incentives | $ 4 | $ 18 | ||
Net favorable per share impact on earnings | $ 0.02 | $ 0.12 | $ 0.04 | |
Net favorable adjustments to uncertain tax positions and related deferred income tax assets | $ 39 | |||
Favorable tax liability remeasurement related to a recent state court decision | 33 | |||
Net favorable deferred income tax adjustments | 5 | |||
Subsidiaries state operating loss carryforwards | $ 17 | |||
Decrease in the valuation allowance | (1) | |||
Unrecognized tax benefits | 152 | 142 | $ 154 | $ 165 |
Unrecognized tax benefits net of federal benefit on state matters that would Impact effective tax rate | $ 108 | 100 | ||
Statute of limitations from the date the tax return is filed, minimum | 3 years | |||
Statute of limitations from the date the tax return is filed, minimum | 4 years | |||
Reasonably possible reduction in unrecognized tax benefits | $ 44 | |||
Reasonably possible reduction in unrecognized tax benefits net of federal benefit on state matters | 35 | |||
Interest and penalties expense (benefit) recognized | 2 | (17) | $ (2) | |
Accrued interest and penalties related to unrecognized tax benefits | $ 26 | $ 23 | ||
Minimum [Member] | ||||
Income Taxes [Line Items] | ||||
Operating loss carryforwards, expiration date | Sep. 30, 2021 | |||
Federal return years that remain open under the statute of limitations | 2,012 | |||
Maximum [Member] | ||||
Income Taxes [Line Items] | ||||
Operating loss carryforwards, expiration date | Sep. 30, 2031 | |||
Federal return years that remain open under the statute of limitations | 2,016 |
Capital Requirements - Net Capi
Capital Requirements - Net Capital and Net Capital Requirements for Company's Subsidiaries (Detail) - USD ($) $ in Thousands | Sep. 30, 2017 | Sep. 30, 2016 |
TD Ameritrade Clearing, Inc [Member] | ||
Net Capital and Net Capital Requirements For Company's Subsidiaries [Line Items] | ||
Net Capital | $ 1,595,000 | $ 1,719,000 |
Required Net Capital (2% of Aggregate Debit Balances) | 340,000 | 288,000 |
Net Capital in Excess of Required Net Capital | $ 1,255,000 | $ 1,431,000 |
Ratio of Net Capital to Aggregate Debit Balances | 9.39% | 11.95% |
TD Ameritrade, Inc [Member] | ||
Net Capital and Net Capital Requirements For Company's Subsidiaries [Line Items] | ||
Net Capital | $ 155,000 | $ 139,000 |
Required Net Capital (Minimum Dollar Requirement) | 250 | 250 |
Net Capital in Excess of Required Net Capital | 155,000 | 138,000 |
Scottrade [Member] | ||
Net Capital and Net Capital Requirements For Company's Subsidiaries [Line Items] | ||
Net Capital | 348,000 | |
Required Net Capital (2% of Aggregate Debit Balances) | 70,000 | |
Net Capital in Excess of Required Net Capital | $ 278,000 | |
Ratio of Net Capital to Aggregate Debit Balances | 9.99% | |
TD Ameritrade Futures & Forex LLC [Member] | ||
Net Capital and Net Capital Requirements For Company's Subsidiaries [Line Items] | ||
Adjusted Net Capital under Commodity Exchange Act | $ 77,000 | 117,000 |
Required Adjusted Net Capital under Commodity Exchange Act | 22,000 | 22,000 |
Adjusted Net Capital in Excess of Required Adjusted Net Capital | $ 55,000 | $ 95,000 |
Capital Requirements - Addition
Capital Requirements - Additional Information (Detail) - USD ($) | Sep. 30, 2017 | Sep. 30, 2016 |
Net Capital and Net Capital Requirements For Company's Subsidiaries [Line Items] | ||
Alternative net capital requirement, 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% | |
Alternative net capital requirement, percentage of net capital to the 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% | |
TD Ameritrade Clearing, Inc [Member] | ||
Net Capital and Net Capital Requirements For Company's Subsidiaries [Line Items] | ||
Alternative net capital requirement, dollar amount threshold | $ 1,500,000 | |
Alternative net capital requirement, percentage of aggregate debit balances | 2.00% | |
TD Ameritrade, Inc [Member] | ||
Net Capital and Net Capital Requirements For Company's Subsidiaries [Line Items] | ||
Alternative net capital requirement, dollar amount threshold | $ 250,000 | |
Alternative net capital requirement, percentage of aggregate debit balances | 2.00% | |
Scottrade [Member] | ||
Net Capital and Net Capital Requirements For Company's Subsidiaries [Line Items] | ||
Alternative net capital requirement, dollar amount threshold | $ 250,000 | |
Alternative net capital requirement, percentage of aggregate debit balances | 2.00% | |
TD Ameritrade Futures & Forex LLC [Member] | ||
Net Capital and Net Capital Requirements For Company's Subsidiaries [Line Items] | ||
FCM required net capital under the Commodity Exchange Act, dollar amount threshold | $ 1,000,000 | |
FCM required net capital under the Commodity Exchange Act, percentage of total risk margin requirement for all positions carried in client accounts | 8.00% | |
FCM required net capital under the Commodity Exchange Act, percentage of total risk margin requirements for all positions carried in non-client accounts | 8.00% | |
FDM required net capital under the Commodity Exchange Act, dollar amount threshold | $ 20,000,000 | |
FDM required net capital under the Commodity Exchange Act, percentage of forex liabilities in excess of $10 million added to the dollar amount threshold | 5.00% | |
FDM required net capital under the Commodity Exchange Act, minimum forex client liability dollar amount threshold | $ 10,000,000 | |
FCM and FDM required net capital under the Commodity Exchange Act, required notice to CFTC, minimum percentage of adjusted net capital to the risk-based capital requirement | 110.00% | |
FCM and FDM required net capital under the Commodity Exchange Act, required notice to CFTC, minimum percentage of adjusted net capital to the FCM's $1 million threshold | 150.00% | |
FCM and FDM required net capital under the Commodity Exchange Act, required notice to CFTC, minimum percentage of adjusted net capital to the FDM's $20 million plus 5% of foreign exchange liabilities owed to forex clients in excess of $10 million threshold | 110.00% | |
TD Ameritrade Trust Company [Member] | ||
Net Capital and Net Capital Requirements For Company's Subsidiaries [Line Items] | ||
Tier 1 capital, balance at period end | $ 32,000,000 | $ 37,000,000 |
Amount in excess of required Tier 1 capital | $ 13,000,000 | $ 21,000,000 |
Stock-based Compensation - Summ
Stock-based Compensation - Summary of Option Activity in Stock Incentive Plans (Detail) $ / shares in Units, shares in Thousands, $ in Millions | 12 Months Ended |
Sep. 30, 2017USD ($)$ / sharesshares | |
Number of Options [Roll Forward] | |
Number of Options, Outstanding at beginning of year | shares | 1,784 |
Number of Options, Exercised | shares | (1,264) |
Number of Options, Expired | shares | (17) |
Number of Options, Outstanding at end of year | shares | 503 |
Number of Options, Exercisable at end of year | shares | 126 |
Weighted Average Exercise Price [Abstract] | |
Weighted Average Exercise Price, Outstanding at beginning of year | $ / shares | $ 21.33 |
Weighted Average Exercise Price, Exercised | $ / shares | 18.42 |
Weighted Average Exercise Price, Expired | $ / shares | 40.33 |
Weighted Average Exercise Price, Outstanding at end of year | $ / shares | 27.97 |
Weighted Average Exercise Price, Exercisable at end of year | $ / shares | $ 27.97 |
Weighted Average Remaining Contractual Term, Outstanding at end of year | 8 years 3 months 19 days |
Weighted Average Remaining Contractual Term, Exercisable at end of year | 8 years 3 months 19 days |
Aggregate Intrinsic Value, Outstanding at end of year | $ | $ 10 |
Aggregate Intrinsic Value, Exercisable at end of year | $ | $ 3 |
Stock-based Compensation - Assu
Stock-based Compensation - Assumptions for Estimation of Fair Value of Awards Granted (Details) | 12 Months Ended |
Sep. 30, 2017 | |
Stock Options [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Risk-free interest rate | 1.73% |
Expected dividend yield | 2.40% |
Expected volatility | 27.00% |
Expected term (years) | 6 years 6 months |
PRSUs [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Risk-free interest rate | 1.34% |
Expected dividend yield | 0.00% |
Expected volatility | 27.00% |
Expected term (years) | 2 years 10 months 24 days |
Stock-based Compensation - Su88
Stock-based Compensation - Summary of Restricted Stock Unit and Performance Restricted Stock Unit Activity in Stock Incentive Plans (Detail) - $ / shares shares in Thousands | 12 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | |
RSUs [Member] | |||
Number of Units [Roll Forward] | |||
Number of Units, Nonvested at beginning of year | 3,506 | ||
Number of Units, Granted | 780 | ||
Number of Units, Vested | (1,693) | ||
Number of Units, Forfeited | (199) | ||
Number of Units, Nonvested at end of year | 2,394 | 3,506 | |
Weighted Average Grant Date Fair Value [Abstract] | |||
Weighted Average Grant Date Fair Value, Nonvested at beginning of year | $ 31.49 | ||
Weighted Average Grant Date Fair Value, Granted | 40.66 | $ 27.97 | $ 34.34 |
Weighted Average Grant Date Fair Value, Vested | 30.51 | ||
Weighted Average Grant Date Fair Value, Forfeited | 35.78 | ||
Weighted Average Grant Date Fair Value, Nonvested at end of year | $ 34.83 | $ 31.49 | |
PRSUs [Member] | |||
Number of Units [Roll Forward] | |||
Number of Units, Nonvested at beginning of year | 0 | ||
Number of Units, Granted | 265 | 0 | 0 |
Number of Units, Nonvested at end of year | 265 | 0 | |
Weighted Average Grant Date Fair Value [Abstract] | |||
Weighted Average Grant Date Fair Value, Nonvested at beginning of year | $ 0 | ||
Weighted Average Grant Date Fair Value, Granted | 39.48 | ||
Weighted Average Grant Date Fair Value, Nonvested at end of year | $ 39.48 | $ 0 |
Stock-based Compensation - Addi
Stock-based Compensation - Additional Information (Detail) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Sep. 30, 2017USD ($)stock_incentive_plan$ / sharesshares | Sep. 30, 2016USD ($)$ / sharesshares | Sep. 30, 2015USD ($)$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of stock incentive plans | stock_incentive_plan | 2 | ||
Stock-based compensation expense | $ 36 | $ 34 | $ 36 |
Stock-based compensation expense, income tax benefits | $ 14 | $ 13 | $ 14 |
Stock Options [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expiration period from grant date | 10 years | ||
Weighted-average grant date fair value of options granted | $ / shares | $ 6.16 | ||
Number of options granted during period | shares | 0 | 0 | |
Total intrinsic value of options exercised during period | $ 26 | $ 0.1 | $ 11 |
Unrecognized compensation costs related to nonvested awards, options | $ 2 | ||
Weighted average period of recognition for unrecognized compensation costs related to nonvested awards | 2 years 3 months 19 days | ||
Stock Options [Member] | Minimum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period | 1 year | ||
Stock Options [Member] | Maximum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period | 4 years | ||
RSUs [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Weighted-average grant-date fair value of awards other than options granted during the period | $ / shares | $ 40.66 | $ 27.97 | $ 34.34 |
Unrecognized compensation costs related to nonvested awards, awards other than options | $ 31 | ||
Weighted average period of recognition for unrecognized compensation costs related to nonvested awards | 1 year 11 months 16 days | ||
Fair value of awards other than options vested during period | $ 70 | $ 71 | $ 59 |
Number of awards other than options granted during the period | shares | 780,000 | ||
RSUs [Member] | Employees [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period | 3 years | ||
RSUs [Member] | Non-employee Directors [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period | 1 year | ||
PRSUs [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period | 3 years | ||
Weighted-average grant-date fair value of awards other than options granted during the period | $ / shares | $ 39.48 | ||
Unrecognized compensation costs related to nonvested awards, awards other than options | $ 5 | ||
Weighted average period of recognition for unrecognized compensation costs related to nonvested awards | 2 years 1 month 25 days | ||
Number of awards other than options granted during the period | shares | 265,000 | 0 | 0 |
PRSUs [Member] | Minimum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Target percentage range related to number of shares of common stock issued | 80.00% | ||
PRSUs [Member] | Maximum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Target percentage range related to number of shares of common stock issued | 120.00% | ||
Long-Term Incentive Plan [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of shares reserved for issuance to eligible employees, consultants and non-employee directors | shares | 42,104,174 | ||
2006 Directors Incentive Plan [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of shares reserved for issuance to eligible employees, consultants and non-employee directors | shares | 1,830,793 |
Employee Benefit Plans - Additi
Employee Benefit Plans - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | |
Retirement Benefits [Abstract] | |||
Profit-sharing and matching contributions expense | $ 38 | $ 35 | $ 34 |
Commitments and Contingencies -
Commitments and Contingencies - Future Minimum Rental Commitments Under Non-Cancelable Operating Leases (Detail) $ in Millions | Sep. 30, 2017USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
Minimum Lease Payments 2018 | $ 90 |
Minimum Lease Payments 2019 | 73 |
Minimum Lease Payments 2020 | 59 |
Minimum Lease Payments 2021 | 41 |
Minimum Lease Payments 2022 | 31 |
Minimum Lease Payments Thereafter (to 2033) | 121 |
Total Minimum Lease Payments | 415 |
Sublease Income 2018 | (4) |
Sublease Income 2019 | (3) |
Sublease Income 2020 | (2) |
Sublease Income 2021 | (3) |
Sublease Income 2022 | (2) |
Sublease Income Thereafter (to 2033) | 0 |
Total Sublease Income | (14) |
Net Lease Commitments 2018 | 86 |
Net Lease Commitments 2019 | 70 |
Net Lease Commitments 2020 | 57 |
Net Lease Commitments 2021 | 38 |
Net Lease Commitments 2022 | 29 |
Net Lease Commitments Thereafter (to 2033) | 121 |
Total Net Lease Commitments | $ 401 |
Commitments and Contingencies92
Commitments and Contingencies - Collateral Available, Loaned or Repledged (Detail) - USD ($) $ in Billions | Sep. 30, 2017 | Sep. 30, 2016 |
Customer Securities for which Entity has Right to Sell or Repledge (Including Securities Sold or Repledged) [Line Items] | ||
Total collateral available | $ 25 | $ 17.6 |
Total collateral loaned or repledged, collateral loaned | 2.4 | 2 |
Total collateral loaned or repledged, collateral repledged | 4.1 | 2.7 |
Total collateral loaned or repledged | 6.5 | 4.7 |
Client Margin Securities [Member] | ||
Customer Securities for which Entity has Right to Sell or Repledge (Including Securities Sold or Repledged) [Line Items] | ||
Total collateral available | 23.8 | 16.5 |
Stock Borrowings [Member] | ||
Customer Securities for which Entity has Right to Sell or Repledge (Including Securities Sold or Repledged) [Line Items] | ||
Total collateral available | $ 1.2 | $ 1.1 |
Commitments and Contingencies93
Commitments and Contingencies - Summary of Cash Deposited with and Securities Pledged to Clearinghouses (Detail) - USD ($) $ in Millions | Sep. 30, 2017 | Sep. 30, 2016 |
Cash Deposited with and Securities Pledged to Clearinghouses [Line Items] | ||
Cash deposited and securities pledged | $ 549 | $ 336 |
Cash [Member] | Receivable from brokers, dealers and clearing organizations [Member] | ||
Cash Deposited with and Securities Pledged to Clearinghouses [Line Items] | ||
Cash deposited and securities pledged | 151 | 116 |
U.S. government debt securities [Member] | Securities owned, at fair value [Member] | ||
Cash Deposited with and Securities Pledged to Clearinghouses [Line Items] | ||
Cash deposited and securities pledged | $ 398 | $ 220 |
Commitments and Contingencies94
Commitments and Contingencies - Additional Information (Detail) | 12 Months Ended | ||
Sep. 30, 2017USD ($)plaintifflitigation_casesinvestor | Sep. 30, 2016USD ($) | Sep. 30, 2015USD ($) | |
Contingencies and Commitments [Line Items] | |||
Rental expense, net of sublease income | $ 54,000,000 | $ 51,000,000 | $ 49,000,000 |
Contingent liability for guarantees to securities clearinghouses and exchanges | 0 | $ 0 | |
Minimum [Member] | |||
Contingencies and Commitments [Line Items] | |||
Aggregate range of reasonably possible losses in excess of amounts accrued | 0 | ||
Maximum [Member] | |||
Contingencies and Commitments [Line Items] | |||
Aggregate range of reasonably possible losses in excess of amounts accrued | $ 65,000,000 | ||
Order Routing Matters [Member] | |||
Contingencies and Commitments [Line Items] | |||
Number of plaintiffs who filed amended claims | plaintiff | 0 | ||
Aequitas Securities Litigation [Member] | |||
Contingencies and Commitments [Line Items] | |||
Alleged amount of securities purchased (more than $140 million) | $ 140,000,000 | ||
Alleged number of investors involved in the claim (more than 1,500) | investor | 1,500 | ||
Alleged amount of securities owed to investors (more than $600 million) | $ 600,000,000 | ||
Number of plaintiffs | plaintiff | 200 | ||
Alleged approximate losses plus other damages | $ 125,000,000 | ||
TD Ameritrade, Inc [Member] | Order Routing Matters [Member] | |||
Contingencies and Commitments [Line Items] | |||
Number of claims previously filed | litigation_cases | 5 | ||
Number of claims dismissed, state law claims | litigation_cases | 5 | ||
Number of claims allowed to be amended | litigation_cases | 4 | ||
TD Ameritrade, Inc [Member] | Aequitas Securities Litigation [Member] | |||
Contingencies and Commitments [Line Items] | |||
Number of plaintiffs | plaintiff | 100 | ||
Alleged approximate losses plus other damages | $ 35,000,000 | ||
Scottrade, Inc. [Member] | Order Routing Matters [Member] | |||
Contingencies and Commitments [Line Items] | |||
Number of claims previously filed | litigation_cases | 1 |
Fair Value Disclosures - Fair V
Fair Value Disclosures - Fair Value Hierarchy for Assets and Liabilities Measured on Recurring Basis (Detail) - USD ($) $ in Millions | Sep. 30, 2017 | Sep. 30, 2016 |
Assets | ||
Securities owned | $ 503 | $ 331 |
Investments available-for-sale, at fair value | 746 | 757 |
Recurring [Member] | ||
Assets | ||
Investments segregated for regulatory purposes | 5,580 | |
Securities owned | 503 | 331 |
Other assets | 28 | 84 |
Total assets at fair value | 7,938 | 9,428 |
Recurring [Member] | Pay Variable Interest Rate Swap [Member] | ||
Assets | ||
Other assets | 26 | 79 |
Liabilities | ||
Accounts payable and other liabilities | 3 | |
Recurring [Member] | U.S. Government Debt Securities [Member] | ||
Assets | ||
Investments segregated for regulatory purposes | 4,094 | 6,598 |
Securities owned | 498 | 320 |
Investments available-for-sale, at fair value | 746 | 757 |
Other assets | 1 | 4 |
Recurring [Member] | U.S. Government Agency Mortgage-Backed Securities [Member] | ||
Assets | ||
Investments segregated for regulatory purposes | 1,486 | |
Recurring [Member] | Other Securities [Member] | ||
Assets | ||
Securities owned | 5 | 11 |
Recurring [Member] | Auction Rate Securities [Member] | ||
Assets | ||
Other assets | 1 | 1 |
Recurring [Member] | Equity Securities [Member] | ||
Liabilities | ||
Accounts payable and other liabilities | 6 | |
Recurring [Member] | Money Market Funds [Member] | ||
Assets | ||
Cash equivalents | 1,081 | 1,658 |
Level 1 [Member] | Recurring [Member] | ||
Assets | ||
Securities owned | 1 | 6 |
Total assets at fair value | 1,082 | 1,664 |
Level 1 [Member] | Recurring [Member] | Other Securities [Member] | ||
Assets | ||
Securities owned | 1 | 6 |
Level 1 [Member] | Recurring [Member] | Equity Securities [Member] | ||
Liabilities | ||
Accounts payable and other liabilities | 6 | |
Level 1 [Member] | Recurring [Member] | Money Market Funds [Member] | ||
Assets | ||
Cash equivalents | 1,081 | 1,658 |
Level 2 [Member] | Recurring [Member] | ||
Assets | ||
Investments segregated for regulatory purposes | 5,580 | |
Securities owned | 502 | 325 |
Other assets | 27 | 83 |
Total assets at fair value | 6,855 | 7,763 |
Level 2 [Member] | Recurring [Member] | Pay Variable Interest Rate Swap [Member] | ||
Assets | ||
Other assets | 26 | 79 |
Liabilities | ||
Accounts payable and other liabilities | 3 | |
Level 2 [Member] | Recurring [Member] | U.S. Government Debt Securities [Member] | ||
Assets | ||
Investments segregated for regulatory purposes | 4,094 | 6,598 |
Securities owned | 498 | 320 |
Investments available-for-sale, at fair value | 746 | 757 |
Other assets | 1 | 4 |
Level 2 [Member] | Recurring [Member] | U.S. Government Agency Mortgage-Backed Securities [Member] | ||
Assets | ||
Investments segregated for regulatory purposes | 1,486 | |
Level 2 [Member] | Recurring [Member] | Other Securities [Member] | ||
Assets | ||
Securities owned | 4 | 5 |
Level 3 [Member] | Recurring [Member] | ||
Assets | ||
Securities owned | 0 | |
Other assets | 1 | 1 |
Total assets at fair value | 1 | 1 |
Level 3 [Member] | Recurring [Member] | Auction Rate Securities [Member] | ||
Assets | ||
Other assets | $ 1 | $ 1 |
Fair Value Disclosures - Additi
Fair Value Disclosures - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Fair Value Disclosures [Abstract] | ||
Reverse repurchase agreements, general maturity | 7 days | |
Reverse repurchase agreements, included in other assets | $ 65 | |
Debt Instrument [Line Items] | ||
Long-term debt, aggregate carrying value | 2,555 | $ 1,817 |
Senior Notes [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt, aggregate estimated fair value | 2,630 | 1,870 |
Long-term debt, aggregate carrying value | $ 2,560 | $ 1,820 |
Offsetting Assets and Liabili97
Offsetting Assets and Liabilities - Effect of Rights of Setoff Associated with Company's Recognized Assets and Liabilities (Detail) - USD ($) $ in Millions | Sep. 30, 2017 | Sep. 30, 2016 |
Offsetting Derivative Asset, Securities Purchased under Agreements to Resell, Securities Borrowed [Abstract] | ||
Total recognized assets, gross | $ 2,249 | $ 2,418 |
Total recognized assets, gross amounts offset in the balance sheet | 0 | 0 |
Total recognized assets, net amounts presented in the balance sheet | 2,249 | 2,418 |
Total recognized assets, gross amounts of financial instruments not offset in the balance sheet | (110) | (172) |
Total recognized assets, gross amounts of collateral received (including cash) not offset in the balance sheet | (2,118) | (2,229) |
Total recognized assets, net amount | 21 | 17 |
Offsetting Securities Loaned [Abstract] | ||
Deposits received for securities loaned, gross | 2,449 | 1,990 |
Securities Sold under Agreements to Repurchase [Abstract] | ||
Securities sold under agreements to repurchase, net amounts presented in the balance sheet | 97 | 0 |
Securities sold under agreements to repurchase, gross amounts of collateral pledged (including cash) not offset in the balance sheet | (99) | 0 |
Offsetting Derivative Liability, Securities Sold under Agreements to Repurchase, Securities Loaned [Abstract] | ||
Total recognized liabilities, gross | 2,549 | |
Total recognized liabilities, gross amounts offset in the balance sheet | 0 | |
Total recognized liabilities, net amounts presented in the balance sheet | 2,549 | |
Total recognized liabilities, gross amounts of financial instruments not offset in the balance sheet | (110) | |
Total recognized liabilities, gross amounts of collateral pledged (including cash) not offset in the balance sheet | (2,213) | |
Total recognized liabilities, net amount | 226 | |
Investments segregated for regulatory purposes [Member] | ||
Offsetting Securities Purchased under Agreements to Resell [Abstract] | ||
Reverse repurchase agreements, gross | 1,004 | 1,288 |
Reverse repurchase agreements, gross amounts offset in the balance sheet | 0 | 0 |
Reverse repurchase agreements, net amounts presented in the balance sheet | 1,004 | 1,288 |
Reverse repurchase agreements, gross amounts of financial instruments not offset in the balance sheet | 0 | 0 |
Reverse repurchase agreements, gross amounts of collateral received (including cash) not offset in the balance sheet | (1,004) | (1,288) |
Reverse repurchase agreements, net amount | 0 | 0 |
Receivable from brokers, dealers and clearing organizations [Member] | ||
Offsetting Securities Borrowed [Abstract] | ||
Deposits paid for securities borrowed, gross | 1,154 | 1,051 |
Deposits paid for securities borrowed, gross amounts offset in the balance sheet | 0 | 0 |
Deposits paid for securities borrowed, net amounts presented in the balance sheet | 1,154 | 1,051 |
Deposits paid for securities borrowed, gross amounts of financial instruments not offset in the balance sheet | (110) | (172) |
Deposits paid for securities borrowed, gross amounts of collateral received (including cash) not offset in the balance sheet | (1,023) | (862) |
Deposits paid for securities borrowed, net amount | 21 | 17 |
Other assets [Member] | ||
Offsetting Securities Purchased under Agreements to Resell [Abstract] | ||
Reverse repurchase agreements, gross | 65 | |
Reverse repurchase agreements, gross amounts offset in the balance sheet | 0 | |
Reverse repurchase agreements, net amounts presented in the balance sheet | 65 | |
Reverse repurchase agreements, gross amounts of financial instruments not offset in the balance sheet | 0 | |
Reverse repurchase agreements, gross amounts of collateral received (including cash) not offset in the balance sheet | (65) | |
Reverse repurchase agreements, net amount | 0 | |
Offsetting Derivative Assets [Abstract] | ||
Pay-variable interest rate swaps, gross | 26 | 79 |
Pay-variable interest rate swaps, gross amounts offset in the balance sheet | 0 | 0 |
Pay-variable interest rate swaps, net amounts presented in the balance sheet | 26 | 79 |
Pay-variable interest rate swaps, gross amounts of financial instruments not offset in the balance sheet | 0 | 0 |
Pay-variable interest rate swaps, gross amounts of collateral received (including cash) not offset in the balance sheet | (26) | (79) |
Pay-variable interest rate swaps, net amount | 0 | 0 |
Offsetting Derivative Asset, Securities Purchased under Agreements to Resell, Securities Borrowed [Abstract] | ||
Total recognized assets, gross | 91 | |
Total recognized assets, gross amounts offset in the balance sheet | 0 | |
Total recognized assets, net amounts presented in the balance sheet | 91 | |
Total recognized assets, gross amounts of financial instruments not offset in the balance sheet | 0 | |
Total recognized assets, gross amounts of collateral received (including cash) not offset in the balance sheet | (91) | |
Total recognized assets, net amount | 0 | |
Payable to brokers, dealers and clearing organizations [Member] | ||
Offsetting Securities Loaned [Abstract] | ||
Deposits received for securities loaned, gross | 2,449 | 1,990 |
Deposits received for securities loaned, gross amounts offset in the balance sheet | 0 | 0 |
Deposits received for securities loaned, net amounts presented in the balance sheet | 2,449 | 1,990 |
Deposits received for securities loaned, gross amounts of financial instruments not offset in the balance sheet | (112) | (172) |
Deposits received for securities loaned, gross amounts of collateral pledged (including cash) not offset in the balance sheet | (2,113) | (1,638) |
Deposits received for securities loaned, net amount | 224 | $ 180 |
Securities sold under agreements to repurchase [Member] | ||
Securities Sold under Agreements to Repurchase [Abstract] | ||
Securities sold under agreements to repurchase, gross | 97 | |
Securities sold under agreements to repurchase, gross amount offset in the balance sheet | 0 | |
Securities sold under agreements to repurchase, net amounts presented in the balance sheet | 97 | |
Securities sold under agreements to repurchase, gross amounts of financial instruments not offset in the balance sheet | 2 | |
Securities sold under agreements to repurchase, gross amounts of collateral pledged (including cash) not offset in the balance sheet | (99) | |
Securities sold under agreements to repurchase, net amount | 0 | |
Accounts payable and other liabilities [Member] | ||
Offsetting Derivative Liabilities [Abstract] | ||
Pay-variable rate interest rate swaps, gross | 3 | |
Pay-variable rate interest rate swaps, gross amounts offset in the balance sheet | 0 | |
Pay-variable rate interest rate swaps, net amounts presented in the balance sheet | 3 | |
Pay-variable rate interest rate swaps, gross amounts of financial instruments not offset in the balance sheet | 0 | |
Pay-variable rate interest rate swaps, gross amounts of collateral pledged (including cash) not offset in the balance sheet | (1) | |
Pay-variable rate interest rate swaps, net amount | $ 2 |
Offsetting Assets and Liabili98
Offsetting Assets and Liabilities - Disaggregation of Secured Lending Transactions (Detail) - USD ($) $ in Millions | Sep. 30, 2017 | Sep. 30, 2016 |
Disaggregation of Gross Securities Lending Transactions [Line Items] | ||
Deposits received for securities loaned, gross | $ 2,449 | $ 1,990 |
Equity Securities [Member] | ||
Disaggregation of Gross Securities Lending Transactions [Line Items] | ||
Deposits received for securities loaned, gross | 2,109 | 1,683 |
Exchange Traded Funds [Member] | ||
Disaggregation of Gross Securities Lending Transactions [Line Items] | ||
Deposits received for securities loaned, gross | 230 | 216 |
Closed-end Funds [Member] | ||
Disaggregation of Gross Securities Lending Transactions [Line Items] | ||
Deposits received for securities loaned, gross | 66 | 73 |
Other Securities [Member] | ||
Disaggregation of Gross Securities Lending Transactions [Line Items] | ||
Deposits received for securities loaned, gross | $ 44 | $ 18 |
Offsetting Assets and Liabili99
Offsetting Assets and Liabilities - Additional Information (Detail) - USD ($) $ in Millions | Sep. 30, 2017 | Sep. 30, 2016 |
Offsetting Assets And Liabilities [Line Items] | ||
Gross amounts of deposits paid for securities borrowed | $ 1,154 | $ 1,051 |
Gross amounts of deposits received for securities loaned | 2,449 | 1,990 |
Fair value of collateral the Company has received under enforceable master agreements | 2,260 | 2,440 |
Fair value of collateral the Company has pledged under enforceable master agreements | 2,320 | 1,810 |
Transacted Through the Option Clearing Corporation [Member] | ||
Offsetting Assets And Liabilities [Line Items] | ||
Gross amounts of deposits paid for securities borrowed | 675 | 590 |
Gross amounts of deposits received for securities loaned | $ 1,650 | $ 1,070 |
Accumulated Other Comprehens100
Accumulated Other Comprehensive Income (Loss) - Net Change (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | |
Investments available-for-sale: | |||
Unrealized loss | $ (9) | $ 0 | $ 0 |
Unrealized loss, tax effect | 4 | 0 | 0 |
Unrealized loss, net of tax | (5) | 0 | 0 |
Cash flow hedging instruments: | |||
Net unrealized loss | 0 | 0 | (15) |
Net unrealized loss, tax effect | 0 | 0 | 5 |
Net unrealized loss, net of tax | 0 | 0 | (10) |
Reclassification adjustment for portion of realized loss amortized to net income | 4 | 5 | 4 |
Reclassification adjustment for portion of realized loss amortized to net income, tax effect | (2) | (2) | (1) |
Reclassification adjustment for portion of realized loss amortized to net income, net of tax | 2 | 3 | 3 |
Total other comprehensive income (loss), before tax | (5) | 5 | (11) |
Income tax effect | 2 | (2) | 4 |
Total other comprehensive income (loss), net of tax | $ (3) | $ 3 | $ (7) |
Accumulated Other Comprehens101
Accumulated Other Comprehensive Income (Loss) - Balance Rollforward (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance, value | $ 5,051 | $ 4,903 | $ 4,748 |
Current period change | (3) | 3 | (7) |
Ending balance, value | 7,247 | 5,051 | 4,903 |
AOCI Attributable to Parent [Member] | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance, value | (22) | (25) | (18) |
Other comprehensive income (loss) before reclassification | (5) | 0 | (10) |
Amount reclassified from accumulated other comprehensive (income) loss | 2 | 3 | 3 |
Current period change | (3) | 3 | (7) |
Ending balance, value | (25) | (22) | (25) |
Investments Available-for-sale [Member] | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance, value | 0 | 0 | 0 |
Other comprehensive income (loss) before reclassification | (5) | 0 | 0 |
Current period change | (5) | 0 | 0 |
Ending balance, value | (5) | 0 | 0 |
Cash Flow Hedging Instruments [Member] | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance, value | (22) | (25) | (18) |
Other comprehensive income (loss) before reclassification | 0 | 0 | (10) |
Amount reclassified from accumulated other comprehensive (income) loss | 2 | 3 | 3 |
Current period change | 2 | 3 | (7) |
Ending balance, value | $ (20) | $ (22) | $ (25) |
Accelerated Stock Repurchase102
Accelerated Stock Repurchase Agreements - Additional Information (Detail) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 12 Months Ended | ||
Sep. 30, 2017 | Jun. 08, 2016 | Dec. 01, 2015 | |
Accelerated Stock Repurchase Agreement - June 2016 [Member] | |||
Forward Contract Indexed to Issuer's Equity [Line Items] | |||
Accelerated stock repurchase agreement start date | Jun. 8, 2016 | ||
Prepayment of accelerated stock repurchase agreement | $ 42.5 | ||
Initial delivery of shares repurchased under accelerated stock repurchase agreement | 1.1 | ||
Accelerated stock repurchase agreement, averaging period start date | Jun. 9, 2016 | ||
Accelerated stock repurchase program, percentage of shares | 80.00% | ||
Accelerated stock repurchase program, initial price paid per share | $ 31.35 | ||
Accelerated stock repurchase program, settlement date | Sep. 15, 2016 | ||
Accelerated stock repurchase program, shares received upon settlement | 0.3 | ||
Date received final shares repurchased under accelerated stock repurchase agreement | Sep. 20, 2016 | ||
Total shares repurchased under accelerated stock repurchase agreement | 1.4 | ||
Accelerated stock repurchase program, final price paid per share | $ 29.89 | ||
Accelerated Stock Repurchase Agreement - December 2015 [Member] | |||
Forward Contract Indexed to Issuer's Equity [Line Items] | |||
Accelerated stock repurchase agreement start date | Dec. 1, 2015 | ||
Prepayment of accelerated stock repurchase agreement | $ 45 | ||
Initial delivery of shares repurchased under accelerated stock repurchase agreement | 1 | ||
Accelerated stock repurchase agreement, averaging period start date | Dec. 2, 2015 | ||
Accelerated stock repurchase program, percentage of shares | 80.00% | ||
Accelerated stock repurchase program, initial price paid per share | $ 36.92 | ||
Accelerated stock repurchase agreement, averaging period end date | Mar. 1, 2016 | ||
Accelerated stock repurchase program, settlement date | Jan. 12, 2016 | ||
Accelerated stock repurchase program, shares received upon settlement | 0.3 | ||
Date received final shares repurchased under accelerated stock repurchase agreement | Jan. 15, 2016 | ||
Total shares repurchased under accelerated stock repurchase agreement | 1.3 | ||
Accelerated stock repurchase program, final price paid per share | $ 33.98 |
Related Party Transactions - Su
Related Party Transactions - Summary of Revenues Resulting from Transactions with Related Parties (Detail) - TD and its affiliates [Member] - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | |
Related Party Transaction [Line Items] | |||
Revenues from related parties | $ 1,140 | $ 958 | $ 858 |
Insured Deposit Account Agreement [Member] | Bank Deposit Account Fees [Member] | |||
Related Party Transaction [Line Items] | |||
Revenues from related parties | 1,101 | 926 | 839 |
Referral and Strategic Alliance Agreement [Member] | Various [Member] | |||
Related Party Transaction [Line Items] | |||
Revenues from related parties | 14 | 14 | 13 |
Mutual Fund Agreements [Member] | Investment Product Fees [Member] | |||
Related Party Transaction [Line Items] | |||
Revenues from related parties | 15 | 11 | 0 |
Other [Member] | Various [Member] | |||
Related Party Transaction [Line Items] | |||
Revenues from related parties | $ 10 | $ 7 | $ 6 |
Related Party Transactions -104
Related Party Transactions - Summary of Expenses Resulting from Transactions with Related Parties (Detail) - TD and its affiliates [Member] - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | |
Related Party Transaction [Line Items] | |||
Expenses to related parties | $ 12 | $ 25 | $ 22 |
Canadian Call Center Services Agreement [Member] | Various [Member] | |||
Related Party Transaction [Line Items] | |||
Expenses to related parties | 11 | 22 | 18 |
Other [Member] | Various [Member] | |||
Related Party Transaction [Line Items] | |||
Expenses to related parties | $ 1 | $ 3 | $ 4 |
Related Party Transactions -105
Related Party Transactions - Summary of Classification and Amount of Receivables from and Payables to Affiliates of Company (Detail) - USD ($) $ in Millions | Sep. 30, 2017 | Sep. 30, 2016 |
Assets: | ||
Receivable from affiliates | $ 137 | $ 106 |
Liabilities: | ||
Payable to brokers, dealers and clearing organizations | 2,504 | 2,040 |
Payable to affiliates | 109 | 9 |
TD and its affiliates [Member] | ||
Assets: | ||
Receivable from affiliates | 110 | 106 |
Liabilities: | ||
Payable to brokers, dealers and clearing organizations | 37 | 72 |
Payable to affiliates | $ 38 | $ 9 |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Detail) | 12 Months Ended | |
Sep. 30, 2017USD ($)board_of_directors_memberComponent | Sep. 30, 2016USD ($) | |
Related Party Transaction [Line Items] | ||
Number of Board of Directors members, total | board_of_directors_member | 12 | |
Receivable from affiliates | $ 137,000,000 | $ 106,000,000 |
Payable to subsidiaries and affiliates | $ 109,000,000 | 9,000,000 |
Insured Deposit Account Agreement [Member] | Maximum [Member] | ||
Related Party Transaction [Line Items] | ||
Servicing fee percentage | 0.25% | |
Insured Deposit Account Agreement [Member] | Minimum [Member] | ||
Related Party Transaction [Line Items] | ||
Servicing fee percentage | 0.03% | |
Canadian Call Center Services Agreement [Member] | ||
Related Party Transaction [Line Items] | ||
Related party transaction, agreement expiration date | Sep. 30, 2017 | |
TD and its affiliates [Member] | ||
Related Party Transaction [Line Items] | ||
Percentage ownership in the Company | 41.00% | |
Number of Board of Directors members, designated by related party | board_of_directors_member | 5 | |
Receivable from affiliates | $ 110,000,000 | 106,000,000 |
Payable to subsidiaries and affiliates | $ 38,000,000 | 9,000,000 |
TD and its affiliates [Member] | Insured Deposit Account Agreement [Member] | ||
Related Party Transaction [Line Items] | ||
Related party transaction, agreement effective date | Jan. 1, 2013 | |
Related party transaction, agreement expiration date | Jul. 1, 2018 | |
Related party transaction, agreement successive renewal term | 5 years | |
Related party transaction, non-renewal terms, prior written notice period for termination of related party agreement by any party | 2 years | |
Number of primary components related to the fee earned on IDA agreement | Component | 2 | |
Reset frequency of adjustments required to adjust variable rate leg of interest rate swaps under current IDA agreement | 1 month | |
Percentage of fixed rate notional investments | 73.00% | |
Percentage of floating rate investments | 27.00% | |
Deposit amount threshold for floating-rate or fixed-rate notional investments with a maturity of up to 24 months subject to servicing fee adjustment | $ 20,000,000,000 | |
Contingent liability carried on the Consolidated Balance Sheets | $ 0 | $ 0 |
TD and its affiliates [Member] | Insured Deposit Account Agreement [Member] | Maximum [Member] | ||
Related Party Transaction [Line Items] | ||
Maturity of short-term fixed-rate notional investments | 24 months | |
TD and its affiliates [Member] | Insured Deposit Account Agreement [Member] | New Fixed Rate Notional Investments [Member] | ||
Related Party Transaction [Line Items] | ||
Event one, federal funds effective rate, minimum | 0.75% | |
Term of U.S. dollar interest rate swaps | 5 years | |
Event two, minimum rate on five-year U.S. dollar interest rate swaps for 20 consecutive business days | 1.50% | |
Event two, number of consecutive business days required above the minimum rate on U.S. dollar interest rate swaps for reduction in rate earned by Company | 20 days | |
Percentage used in the calculation to reduce the rate earned by the Company on new fixed-rate notional investments in the case event one and event two are both fulfilled | 20.00% | |
Maximum reduction to rate on new fixed-rate notional investments earned by Company in the case event one and event two are both fulfilled | 0.10% | |
TD and its affiliates [Member] | Insured Deposit Account Agreement Fee Example [Member] | ||
Related Party Transaction [Line Items] | ||
Designated deposit amount | $ 100,000,000 | |
Term of deposits invested in fixed rate investments | 5 years | |
Term of applicable swaps | 5 years | |
Fixed yield for applicable LIBOR-based swaps | 1.45% | |
Gross fixed yield earned on deposits | 1.45% | |
Management [Member] | ||
Related Party Transaction [Line Items] | ||
Receivable from affiliates | $ 27,000,000 | |
Payable to subsidiaries and affiliates | $ 71,000,000 |
Condensed Financial Informat107
Condensed Financial Information (Parent Company Only) - Schedule of Condensed Balance Sheets (Detail) - USD ($) $ in Millions | Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2014 |
ASSETS | ||||
Cash and cash equivalents | $ 1,472 | $ 1,855 | $ 1,978 | $ 1,460 |
Receivable from subsidiaries | 137 | 106 | ||
Investments available-for-sale, at fair value | 746 | 757 | ||
Total assets | 38,627 | 28,818 | ||
Liabilities: | ||||
Accounts payable and other liabilities | 815 | 565 | ||
Payable to affiliates | 109 | 9 | ||
Securities sold under agreements to repurchase | 97 | 0 | ||
Long-term debt | 2,555 | 1,817 | ||
Total liabilities | 31,380 | 23,767 | ||
Stockholders' equity | 7,247 | 5,051 | 4,903 | 4,748 |
Total liabilities and stockholders' equity | 38,627 | 28,818 | ||
TD Ameritrade Holding Corporation [Member] | ||||
ASSETS | ||||
Cash and cash equivalents | 154 | 248 | $ 920 | $ 117 |
Receivable from subsidiaries | 6 | 8 | ||
Investments available-for-sale, at fair value | 746 | 757 | ||
Investments in subsidiaries | 9,043 | 5,894 | ||
Other, net | 108 | 163 | ||
Total assets | 10,057 | 7,070 | ||
Liabilities: | ||||
Accounts payable and other liabilities | 104 | 171 | ||
Payable to affiliates | 54 | 31 | ||
Securities sold under agreements to repurchase | 97 | 0 | ||
Long-term debt | 2,555 | 1,817 | ||
Total liabilities | 2,810 | 2,019 | ||
Stockholders' equity | 7,247 | 5,051 | ||
Total liabilities and stockholders' equity | $ 10,057 | $ 7,070 |
Condensed Financial Informat108
Condensed Financial Information (Parent Company Only) - Schedule of Condensed Statements of Income (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | |
Condensed Income Statements, Captions [Line Items] | |||||||||||
Net revenues | $ 983 | $ 931 | $ 904 | $ 859 | $ 829 | $ 838 | $ 846 | $ 812 | $ 3,676 | $ 3,327 | $ 3,247 |
Operating expenses | 2,210 | 2,009 | 1,922 | ||||||||
Operating income | 361 | 394 | 358 | 353 | 283 | 348 | 343 | 343 | 1,466 | 1,318 | 1,325 |
Other expense (income) | 72 | 53 | 37 | ||||||||
Pre-tax income | 1,394 | 1,265 | 1,288 | ||||||||
Provision for (benefit from) income taxes | 522 | 423 | 475 | ||||||||
Net income | $ 211 | $ 231 | $ 214 | $ 216 | $ 185 | $ 240 | $ 205 | $ 212 | 872 | 842 | 813 |
TD Ameritrade Holding Corporation [Member] | |||||||||||
Condensed Income Statements, Captions [Line Items] | |||||||||||
Net revenues | 31 | 30 | 17 | ||||||||
Operating expenses | 34 | 26 | 16 | ||||||||
Operating income | (3) | 4 | 1 | ||||||||
Other expense (income) | 71 | 53 | 43 | ||||||||
Pre-tax income | (74) | (49) | (42) | ||||||||
Provision for (benefit from) income taxes | (22) | 6 | (16) | ||||||||
Income (loss) before equity in income of subsidiaries | (52) | (55) | (26) | ||||||||
Equity in income of subsidiaries | 924 | 897 | 839 | ||||||||
Net income | $ 872 | $ 842 | $ 813 |
Condensed Financial Informat109
Condensed Financial Information (Parent Company Only) - Schedule of Condensed Statements of Cash Flows (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | |
Cash flows from operating activities: | |||||||||||
Net income | $ 211 | $ 231 | $ 214 | $ 216 | $ 185 | $ 240 | $ 205 | $ 212 | $ 872 | $ 842 | $ 813 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||
Deferred income taxes | (11) | (8) | (23) | ||||||||
Stock-based compensation | 36 | 34 | 36 | ||||||||
Other | 11 | 16 | 7 | ||||||||
Changes in operating assets and liabilities: | |||||||||||
Other assets | (5) | (17) | 45 | ||||||||
Accounts payable and other liabilities | 31 | (58) | 39 | ||||||||
Net cash provided by (used in) operating activities | 687 | 1,468 | 746 | ||||||||
Cash flows from investing activities: | |||||||||||
Proceeds from sale and maturity of short-term investments | 4 | 604 | 504 | ||||||||
Purchase of short-term investments | (66) | (605) | (506) | ||||||||
Purchase of investments available-for-sale, at fair value | 0 | (757) | 0 | ||||||||
Proceeds from sale of investments | 0 | 0 | 10 | ||||||||
Net cash provided by (used in) investing activities | (1,547) | (863) | (60) | ||||||||
Cash flows from financing activities: | |||||||||||
Proceeds from issuance of long-term debt | 798 | 0 | 1,248 | ||||||||
Payment of debt issuance costs | (8) | 0 | (11) | ||||||||
Principal payments on long-term debt | (385) | 0 | (569) | ||||||||
Payment of prepayment premium on long-term debt | (54) | 0 | 0 | ||||||||
Proceeds from securities sold under agreements to repurchase | 97 | 0 | 0 | ||||||||
Principal payments on notes payable | 0 | 0 | (150) | ||||||||
Payment of cash dividends | (379) | (362) | (326) | ||||||||
Proceeds from issuance of common stock | 400 | 0 | 0 | ||||||||
Purchase of treasury stock | 0 | (352) | (364) | ||||||||
Purchase of treasury stock for income tax withholding on stock-based compensation | (27) | (30) | (23) | ||||||||
Net cash provided by (used in) financing activities | 477 | (728) | (168) | ||||||||
Net increase (decrease) in cash and cash equivalents | (383) | (123) | 518 | ||||||||
Cash and cash equivalents at beginning of year | 1,855 | 1,978 | 1,855 | 1,978 | 1,460 | ||||||
Cash and cash equivalents at end of year | 1,472 | 1,855 | 1,472 | 1,855 | 1,978 | ||||||
Supplemental cash flow information: | |||||||||||
Interest paid | 59 | 54 | 30 | ||||||||
Income taxes paid | 483 | 519 | 498 | ||||||||
Noncash investing activities: | |||||||||||
Issuance of common stock in acquisition | 1,261 | 0 | 0 | ||||||||
TD Ameritrade Holding Corporation [Member] | |||||||||||
Cash flows from operating activities: | |||||||||||
Net income | 872 | 842 | 813 | ||||||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||
Equity in income of subsidiaries | (924) | (897) | (839) | ||||||||
Deferred income taxes | (12) | 0 | (1) | ||||||||
Dividends from subsidiaries | 1,230 | 825 | 985 | ||||||||
Stock-based compensation | 36 | 34 | 36 | ||||||||
Other | 9 | 8 | 9 | ||||||||
Changes in operating assets and liabilities: | |||||||||||
Receivable from subsidiaires | 2 | (3) | 5 | ||||||||
Other assets | 0 | 1 | 44 | ||||||||
Accounts payable and other liabilities | (67) | 38 | (40) | ||||||||
Payable to subsidiaries | (4) | 26 | 0 | ||||||||
Net cash provided by (used in) operating activities | 1,142 | 874 | 1,012 | ||||||||
Cash flows from investing activities: | |||||||||||
Investment in subsidiaries | (15) | (60) | (40) | ||||||||
Cash paid in business acquisition | (1,698) | 0 | 0 | ||||||||
Proceeds from sale and maturity of short-term investments | 0 | 600 | 500 | ||||||||
Purchase of short-term investments | 0 | (601) | (502) | ||||||||
Purchase of investments available-for-sale, at fair value | 0 | (757) | 0 | ||||||||
Proceeds from sale of investments | 0 | 0 | 1 | ||||||||
Net cash provided by (used in) investing activities | (1,713) | (818) | (41) | ||||||||
Cash flows from financing activities: | |||||||||||
Proceeds from issuance of long-term debt | 798 | 0 | 1,248 | ||||||||
Payment of debt issuance costs | (8) | 0 | (11) | ||||||||
Principal payments on long-term debt | (385) | 0 | (569) | ||||||||
Payment of prepayment premium on long-term debt | (54) | 0 | 0 | ||||||||
Proceeds from securities sold under agreements to repurchase | 97 | 0 | 0 | ||||||||
Principal payments on notes payable | 0 | 0 | (150) | ||||||||
Payment of cash dividends | (379) | (362) | (326) | ||||||||
Proceeds from issuance of common stock | 400 | 0 | 0 | ||||||||
Purchase of treasury stock | 0 | (352) | (364) | ||||||||
Purchase of treasury stock for income tax withholding on stock-based compensation | (27) | (30) | (23) | ||||||||
Other, net | 35 | 16 | 27 | ||||||||
Net cash provided by (used in) financing activities | 477 | (728) | (168) | ||||||||
Net increase (decrease) in cash and cash equivalents | (94) | (672) | 803 | ||||||||
Cash and cash equivalents at beginning of year | $ 248 | $ 920 | 248 | 920 | 117 | ||||||
Cash and cash equivalents at end of year | $ 154 | $ 248 | 154 | 248 | 920 | ||||||
Supplemental cash flow information: | |||||||||||
Interest paid | 50 | 47 | 23 | ||||||||
Income taxes paid | 452 | 488 | 471 | ||||||||
Noncash investing activities: | |||||||||||
Issuance of common stock in acquisition | 1,261 | 0 | 0 | ||||||||
Assets transferred to a subsidiary | $ 15 | $ 0 | $ 0 |
Quarterly Data - Schedule of Qu
Quarterly Data - Schedule of Quarterly Financial Data (Detail) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Net revenues | $ 983 | $ 931 | $ 904 | $ 859 | $ 829 | $ 838 | $ 846 | $ 812 | $ 3,676 | $ 3,327 | $ 3,247 |
Operating income | 361 | 394 | 358 | 353 | 283 | 348 | 343 | 343 | 1,466 | 1,318 | 1,325 |
Net income | $ 211 | $ 231 | $ 214 | $ 216 | $ 185 | $ 240 | $ 205 | $ 212 | $ 872 | $ 842 | $ 813 |
Basic earnings per share (in usd per share) | $ 0.40 | $ 0.44 | $ 0.41 | $ 0.41 | $ 0.35 | $ 0.45 | $ 0.38 | $ 0.39 | $ 1.65 | $ 1.59 | $ 1.50 |
Diluted earnings per share (in usd per share) | $ 0.39 | $ 0.44 | $ 0.40 | $ 0.41 | $ 0.35 | $ 0.45 | $ 0.38 | $ 0.39 | $ 1.64 | $ 1.58 | $ 1.49 |