Document and Entity Information
Document and Entity Information - USD ($) $ in Billions | 12 Months Ended | ||
Dec. 31, 2017 | Jan. 31, 2018 | Jun. 30, 2017 | |
Document and Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2017 | ||
Document Fiscal Year Focus | 2,017 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | SCHW | ||
Entity Registrant Name | SCHWAB CHARLES CORP | ||
Entity Central Index Key | 316,709 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Common Stock, Shares Outstanding | 1,346,473,499 | ||
Entity Public Float | $ 51.2 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) shares in Millions, $ in Millions | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||
Net Revenues: | ||||
Interest revenue | $ 4,624 | $ 3,493 | $ 2,657 | |
Interest expense | (342) | (171) | (132) | |
Net interest revenue | 4,282 | 3,322 | 2,525 | |
Asset management and administration fees | [1] | 3,392 | 3,055 | 2,650 |
Trading revenue | 654 | 825 | 866 | |
Other | 290 | 271 | 328 | |
Provision for loan losses | 0 | 5 | 11 | |
Total net revenues | 8,618 | 7,478 | 6,380 | |
Expenses Excluding Interest | ||||
Compensation and benefits | 2,737 | 2,466 | 2,241 | |
Professional services | 580 | 506 | 459 | |
Occupancy and equipment | 436 | 398 | 353 | |
Advertising and market development | 268 | 265 | 249 | |
Communications | 231 | 237 | 233 | |
Depreciation and amortization | 269 | 234 | 224 | |
Regulatory fees and assessments | 179 | 144 | 107 | |
Other | 268 | 235 | 235 | |
Total expenses excluding interest | 4,968 | 4,485 | 4,101 | |
Income before taxes on income | 3,650 | 2,993 | 2,279 | |
Taxes on income | [2] | 1,296 | 1,104 | 832 |
Net Income | 2,354 | 1,889 | 1,447 | |
Preferred stock dividends and other | [3] | 174 | 143 | 83 |
Net Income Available to Common Stockholders | $ 2,180 | $ 1,746 | $ 1,364 | |
Weighted-Average Common Shares Outstanding: | ||||
Basic (in shares) | 1,339 | 1,324 | 1,315 | |
Diluted (in shares) | [4] | 1,353 | 1,334 | 1,327 |
Earnings Per Common Share: | ||||
Basic (USD per share) | $ 1.63 | $ 1.32 | $ 1.04 | |
Diluted (USD per share) | 1.61 | 1.31 | 1.03 | |
Dividends Declared Per Common Share (USD per share) | $ 0.32 | $ 0.27 | $ 0.24 | |
Fee waivers | $ (10) | $ (224) | $ (672) | |
Remeasurement of net deferred tax assets | $ 46 | |||
[1] | Includes fee waivers of $10 million, $224 million, and $672 million during the years ended December 31, 2017, 2016, and 2015, respectively, relating to Schwab-sponsored money market funds. | |||
[2] | Includes the prospective adoption of ASU 2016-09 in 2017. See New Accounting Standards in Note 2 for additional information. Taxes on income were increased by approximately $46 million in December 2017 due to the enactment of the Tax Cuts and Jobs Act legislation resulting in the remeasurement of deferred tax assets and other tax adjustments. | |||
[3] | Includes preferred stock dividends and undistributed earnings and dividends allocated to non-vested restricted stock units. | |||
[4] | Antidilutive stock options and restricted stock units excluded from the calculation of diluted EPS totaled 15 million, 26 million, and 23 million shares in 2017, 2016, and 2015, respectively. |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 2,354 | $ 1,889 | $ 1,447 |
Change in net unrealized gain (loss) on available for sale securities: | |||
Net unrealized gain (loss) | 13 | (44) | (477) |
Reclassification of net unrealized loss transferred to held to maturity | 227 | 0 | 0 |
Other reclassifications included in other revenue | (12) | (4) | 0 |
Change in net unrealized gain (loss) on held to maturity securities: | |||
Reclassification of net unrealized loss transferred from available for sale | (227) | 0 | 0 |
Amortization of amounts previously recorded upon transfer from available for sale | 31 | 0 | 0 |
Other | (11) | 1 | 0 |
Other comprehensive income (loss), before tax | 21 | (47) | (477) |
Income tax effect | (10) | 18 | 178 |
Other comprehensive income (loss), net of tax | 11 | (29) | (299) |
Comprehensive Income | $ 2,365 | $ 1,860 | $ 1,148 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Assets | ||
Cash and cash equivalents | $ 14,217 | $ 10,828 |
Cash and investments segregated and on deposit for regulatory purposes (including resale agreements of $6,596 and $9,547 at December 31, 2017 and 2016, respectively) | 15,139 | 22,174 |
Receivables from brokers, dealers, and clearing organizations | 649 | 728 |
Receivables from brokerage clients — net | 20,576 | 17,155 |
Other securities owned — at fair value | 539 | 449 |
Available for sale securities | 49,995 | 77,365 |
Held to maturity securities (fair value — $120,373 and $74,444 at December 31, 2017 and 2016, respectively) | 120,926 | 75,203 |
Bank loans — net | 16,478 | 15,403 |
Equipment, office facilities, and property — net | 1,471 | 1,299 |
Goodwill | 1,227 | 1,227 |
Intangible assets — net | 108 | 144 |
Other assets | 1,949 | 1,408 |
Total assets | 243,274 | 223,383 |
Liabilities and Stockholders’ Equity | ||
Bank deposits | 169,656 | 163,454 |
Payables to brokers, dealers, and clearing organizations | 1,287 | 2,407 |
Payables to brokerage clients | 31,243 | 35,894 |
Accrued expenses and other liabilities | 2,810 | 2,331 |
Short-term borrowings | 15,000 | 0 |
Long-term debt | 4,753 | 2,876 |
Total liabilities | 224,749 | 206,962 |
Stockholders’ equity: | ||
Preferred stock — $.01 par value per share; aggregate liquidation preference of $2,850 and $2,835 at December 31, 2017 and 2016, respectively | 2,793 | 2,783 |
Common stock — 3 billion shares authorized; $.01 par value per share; 1,487,543,446 shares issued | 15 | 15 |
Additional paid-in capital | 4,353 | 4,267 |
Retained earnings | 14,408 | 12,649 |
Treasury stock, at cost — 142,210,890 and 154,793,560 shares at December 31, 2017 and 2016, respectively | (2,892) | (3,130) |
Accumulated other comprehensive income | (152) | (163) |
Total stockholders’ equity | 18,525 | 16,421 |
Total liabilities and stockholders’ equity | $ 243,274 | $ 223,383 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Statement of Financial Position [Abstract] | ||
Cash and investments segregated and on deposit for regulatory purposes, resale agreements | $ 6,596 | $ 9,547 |
Held to maturity securities: Fair Value | $ 120,373 | $ 74,444 |
Preferred stock, par value (USD per share) | $ 0.01 | $ 0.01 |
Preferred stock, aggregate liquidation preference | $ 2,850 | $ 2,835 |
Common stock, shares authorized (shares) | 3,000,000,000 | 3,000,000,000 |
Common stock, par value (USD per share) | $ 0.01 | $ 0.01 |
Common stock, shares issued (shares) | 1,487,543,446 | 1,487,543,446 |
Treasury stock, shares (shares) | 142,210,890 | 154,793,560 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Cash Flows from Operating Activities | |||
Net income | $ 2,354 | $ 1,889 | $ 1,447 |
Adjustments to reconcile net income to net cash (used for) provided by operating activities: | |||
Provision for loan losses | 0 | (5) | (11) |
Share-based compensation | 153 | 141 | 135 |
Depreciation and amortization | 269 | 234 | 224 |
Provision (Benefit) for deferred income taxes | 58 | 15 | (7) |
Premium amortization, net, on available for sale and held to maturity securities | 342 | 266 | 162 |
Other | 51 | 9 | (4) |
Net change in: | |||
Cash and investments segregated and on deposit for regulatory purposes | 7,035 | (2,576) | 1,183 |
Receivables from brokers, dealers, and clearing organizations | 74 | (147) | (108) |
Receivables from brokerage clients | (3,428) | 150 | (1,652) |
Other securities owned | (90) | 84 | (17) |
Other assets | (177) | (93) | (98) |
Payables to brokers, dealers, and clearing organizations | (1,148) | (181) | 808 |
Payables to brokerage clients | (4,651) | 2,709 | (1,120) |
Accrued expenses and other liabilities | 421 | 167 | 304 |
Net cash provided by operating activities | 1,263 | 2,662 | 1,246 |
Cash Flows from Investing Activities | |||
Purchases of available for sale securities | (15,033) | (29,248) | (21,351) |
Proceeds from sales of available for sale securities | 8,617 | 5,537 | 2,424 |
Principal payments on available for sale securities | 9,095 | 11,903 | 7,340 |
Purchases of held to maturity securities | (32,925) | (31,162) | (19,303) |
Principal payments on held to maturity securities | 11,627 | 5,747 | 3,540 |
Net increase in bank loans | (1,071) | (1,103) | (980) |
Purchase of equipment, office facilities, and property | (400) | (346) | (266) |
Purchases of Federal Home Loan Bank stock | (430) | (152) | 0 |
Proceeds from sales of Federal Home Loan Bank stock | 106 | 88 | 8 |
Other investing activities | (59) | (39) | (35) |
Net cash used for investing activities | (20,473) | (38,775) | (28,623) |
Cash Flows from Financing Activities | |||
Net change in bank deposits | 6,186 | 33,952 | 26,687 |
Net proceeds from short-term borrowings | 15,000 | 0 | 0 |
Issuance of long-term debt | 2,129 | 0 | 1,346 |
Repayment of long-term debt | (257) | (7) | (357) |
Net proceeds from preferred stock offerings | 492 | 1,316 | 581 |
Redemption of preferred stock | (485) | 0 | 0 |
Dividends paid | (592) | (486) | (387) |
Proceeds from stock options exercised and other | 171 | 144 | 90 |
Other financing activities | (45) | 44 | 32 |
Net cash provided by financing activities | 22,599 | 34,963 | 27,992 |
Increase (Decrease) in Cash and Cash Equivalents | 3,389 | (1,150) | 615 |
Cash and Cash Equivalents at Beginning of Year | 10,828 | 11,978 | 11,363 |
Cash and Cash Equivalents at End of Year | 14,217 | 10,828 | 11,978 |
Cash paid during the year for: | |||
Interest | 327 | 160 | 121 |
Income taxes | 1,212 | 991 | 810 |
Non-cash investing activity: | |||
Securities purchased during the year but settled after year end | $ 29 | $ 0 | $ 0 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) shares in Millions, $ in Millions | Total | Preferred Stock [Member] | Common Stock [Member] | Additional Paid-In Capital [Member] | Retained Earnings [Member] | Treasury Stock, at cost [Member] | Accumulated Other Comprehensive Income (Loss) [Member] |
Beginning Balance at Dec. 31, 2014 | $ 11,803 | $ 872 | $ 15 | $ 4,050 | $ 10,198 | $ (3,497) | $ 165 |
Beginning Balance (in shares) at Dec. 31, 2014 | 1,488 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income | 1,447 | 1,447 | |||||
Other comprehensive income (loss), net of tax | (299) | (299) | |||||
Issuance of preferred stock, net | 587 | 587 | |||||
Dividends declared on preferred stock | (69) | (69) | |||||
Dividends declared on common stock | (318) | (318) | |||||
Stock option exercises and other | 90 | (87) | 177 | ||||
Share-based compensation and related tax effects | 172 | 172 | |||||
Other | (11) | 17 | (5) | (23) | |||
Ending Balance (in shares) at Dec. 31, 2015 | 1,488 | ||||||
Ending Balance at Dec. 31, 2015 | 13,402 | 1,459 | $ 15 | 4,152 | 11,253 | (3,343) | (134) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income | 1,889 | 1,889 | |||||
Other comprehensive income (loss), net of tax | (29) | (29) | |||||
Issuance of preferred stock, net | 1,324 | 1,324 | |||||
Dividends declared on preferred stock | (126) | (126) | |||||
Dividends declared on common stock | (360) | (360) | |||||
Stock option exercises and other | 144 | (80) | 224 | ||||
Share-based compensation and related tax effects | 177 | 177 | |||||
Other | 0 | 18 | (7) | (11) | |||
Ending Balance (in shares) at Dec. 31, 2016 | 1,488 | ||||||
Ending Balance at Dec. 31, 2016 | 16,421 | 2,783 | $ 15 | 4,267 | 12,649 | (3,130) | (163) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income | 2,354 | 2,354 | |||||
Other comprehensive income (loss), net of tax | 11 | 11 | |||||
Issuance of preferred stock, net | 492 | 492 | |||||
Redemption of preferred stock | (485) | (482) | (3) | ||||
Dividends declared on preferred stock | (161) | (161) | |||||
Dividends declared on common stock | (431) | (431) | |||||
Stock option exercises and other | 171 | (88) | 259 | ||||
Share-based compensation and related tax effects | 144 | 144 | |||||
Other | 9 | 30 | 0 | (21) | |||
Ending Balance (in shares) at Dec. 31, 2017 | 1,488 | ||||||
Ending Balance at Dec. 31, 2017 | $ 18,525 | $ 2,793 | $ 15 | $ 4,353 | $ 14,408 | $ (2,892) | $ (152) |
Introduction and Basis of Prese
Introduction and Basis of Presentation | 12 Months Ended |
Dec. 31, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Introduction and Basis of Presentation | Introduction and Basis of Presentation The Charles Schwab Corporation (CSC) is a savings and loan holding company, headquartered in San Francisco, California. CSC was incorporated in 1986 and engages, through its subsidiaries, in wealth management, securities brokerage, banking, asset management, custody, and financial advisory services. Charles Schwab & Co., Inc. (CS&Co) is a securities broker-dealer with over 345 domestic branch offices in 46 states, as well as a branch in the Commonwealth of Puerto Rico. In addition, Schwab serves clients in England, Hong Kong, Singapore, and Australia through various subsidiaries. Other significant subsidiaries include Schwab Bank, a federal savings bank, and Charles Schwab Investment Management, Inc. (CSIM), the investment advisor for Schwab’s proprietary mutual funds (Schwab Funds ® ), and for Schwab’s exchange-traded funds (Schwab ETFs™). The accompanying consolidated financial statements include CSC and its subsidiaries. Intercompany balances and transactions have been eliminated. These consolidated financial statements have been prepared in conformity with GAAP, which require management to make certain estimates and assumptions that affect the reported amounts in the accompanying financial statements. Certain estimates relate to taxes on income and legal and regulatory reserves. Actual results may differ from those estimates. Unless otherwise indicated, the terms “Schwab,” “the Company,” “we,” “us,” or “our” mean CSC together with its consolidated subsidiaries. Principles of Consolidation Schwab evaluates all entities in which it has financial interests for consolidation, except for money market funds, which are specifically excluded from consolidation guidance. When an entity is evaluated for consolidation, Schwab determines whether its interest in the entity constitutes a controlling financial interest under either the variable interest entity (VIE) model or the voting interest entity (VOE) model. In evaluating whether Schwab’s interest in a VIE is a controlling financial interest, we consider whether our involvement, in the context of the design, purpose, and risks of the VIE, as well as any involvement of related parties, provides us with (i) the power to direct the most significant activities of the VIE and (ii) the obligation to absorb losses or receive benefits that are significant to the VIE. If both of these conditions exist, then Schwab would be the primary beneficiary of that VIE and consolidate it. Based upon the assessments for all of our interests in VIEs, there are no cases where the Company is the primary beneficiary; therefore, we are not required to consolidate any VIEs. See Note 10 for further information about VIEs. The Company consolidates all VOEs in which it has majority voting interests. Investments in entities in which Schwab does not have a controlling financial interest are accounted for under the equity method of accounting when we have the ability to exercise significant influence over operating and financing decisions of the entity. Investments in entities for which the Company does not have the ability to exercise significant influence are generally carried at cost, except for certain investments in qualified affordable housing projects which are accounted for under the proportional amortization method. All equity method, cost method, and proportional amortization method investments are included in other assets on the consolidated balance sheets. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Interest revenue Interest revenue is recognized as earned on interest-earning assets such as cash and cash equivalents, cash and investments segregated, receivables from brokerage clients, investment securities, and bank loans. Interest revenue from these assets is based upon average or daily balances and the applicable interest rates. Interest revenue is also recognized from securities lending activities when earned based upon the securities and amounts lent and the applicable rates. Asset management and administration fees Asset management and administration fees are recognized as services are performed. Such fees are generally based on a percentage of the daily average asset balances, which are based on quoted market prices and other observable market data. The Company’s policy is to recognize revenue subject to refunds because management can estimate refunds based on Company-specific experience. Actual refunds were immaterial for all periods presented. Trading revenue Schwab generates the majority of its trading revenue through commissions earned for executing trades for clients. Commission revenues are recognized as services are performed at the time of execution (i.e., on the trade date). Cash and cash equivalents Schwab considers all highly liquid investments that mature in three months or less from the time of acquisition and that are not segregated and on deposit for regulatory purposes to be cash equivalents. Cash and cash equivalents include money market funds, deposits with banks, certificates of deposit, commercial paper, and U.S. Treasury securities. Cash and cash equivalents also include balances that Schwab Bank maintains at the Federal Reserve Bank (FRB). Cash and investments segregated and on deposit for regulatory purposes Cash and investments segregated and on deposit for regulatory purposes include securities purchased under agreements to resell (resale agreements), which are collateralized by U.S. Government and agency securities. Resale agreements are accounted for as collateralized financing transactions that are recorded at their contractual amounts plus accrued interest. The Company obtains control of collateral with a market value equal to or in excess of the principal amount loaned and accrued interest under resale agreements. Collateral is valued daily by the Company, with additional collateral obtained to ensure full collateralization. Cash and investments segregated also include certificates of deposit and U.S. Government securities. Certificates of deposit and U.S. Government securities are recorded at fair value. Pursuant to the SEC’s Customer Protection Rule, cash balances not collateralizing margin positions and not swept to money market funds or bank deposit accounts, are segregated by Schwab for the exclusive benefit of clients. Receivables from brokerage clients Receivables from brokerage clients include margin loans to securities brokerage clients and other trading receivables from clients. Margin loans are collateralized by client securities and are carried at the amount receivable, net of an allowance for doubtful accounts. The Company monitors margin levels and requires clients to deposit additional collateral, or reduce margin positions to meet minimum collateral requirements if the fair value of the collateral changes. Receivables from brokerage clients that remain unsecured or partially secured for more than 30 days are fully reserved for in the allowance for doubtful accounts, except in the case of confirmed fraud, which is reserved immediately. Clients with margin loans have agreed to allow Schwab to pledge collateralized securities in accordance with federal regulations. The collateral is not reflected in the consolidated financial statements. The allowance for doubtful accounts for brokerage clients and related activity was immaterial for all periods presented. Other securities owned Other securities owned are recorded at fair value based on quoted market prices or other observable market data. Unrealized gains and losses are included in trading revenue. Investment securities AFS securities are recorded at fair value and unrealized gains and losses are reported, net of taxes, in AOCI included in stockholders’ equity. HTM securities are recorded at amortized cost based on the Company’s positive intent and ability to hold these securities to maturity. Realized gains and losses from sales of AFS securities are determined on a specific identification basis and are included in other revenue. Management evaluates whether investment securities are OTTI on a quarterly basis. Debt securities with unrealized losses are considered OTTI if the Company intends to sell the security or if it is more likely than not that the Company will be required to sell such security before any anticipated recovery. If management determines that a security is OTTI under these circumstances, the impairment recognized in earnings is measured as the entire difference between amortized cost and fair value. A security is also OTTI if management does not expect to recover all of the amortized cost of the security. In this circumstance, the impairment recognized in earnings represents the estimated credit loss, and is measured by the difference between the present value of expected cash flows and the amortized cost of the security. Where appropriate, models are utilized to estimate the credit loss on a discounted cash flow basis using the security’s effective interest rate. The evaluation of whether we expect to recover the amortized cost of a security is inherently judgmental. The evaluation considers multiple factors including: the magnitude and duration of the unrealized loss; the financial condition of the issuer; the payment structure of the security; external credit ratings; our internal credit ratings; for asset-backed securities, the amount of credit support provided by the structure of the security to absorb credit losses on the underlying collateral; recent events specific to the issuer and the issuer’s industry; and whether all scheduled principal and interest payments have been received. Securities borrowed and securities loaned Securities borrowed require Schwab to deliver cash to the lender in exchange for securities and are included in receivables from brokers, dealers, and clearing organizations. For securities loaned, Schwab receives collateral in the form of cash in an amount equal to or greater than the market value of securities loaned. Securities loaned are included in payables to brokers, dealers, and clearing organizations. The market value of securities borrowed and loaned are monitored, with additional collateral obtained or refunded to ensure full collateralization. Fees received or paid are recorded in interest revenue or interest expense. Bank loans and related allowance for loan losses Bank loans are recorded at their contractual principal amounts and include unamortized direct origination costs or net purchase discounts or premiums. Direct origination costs and premiums and discounts are recognized in interest revenue using the effective interest method over the contractual life of the loan and are adjusted for actual prepayments. Additionally, loans are recorded net of an allowance for loan losses. The loan portfolio includes four loan types: First Mortgages, HELOCs, PALs and other loans. We use these segments when developing and documenting our methodology for determining the allowance for loan losses. PALs are collateralized by marketable securities with liquid markets. Credit lines are over-collateralized dependent on the type of security pledged. Collateral market value is monitored on a daily basis and a borrower’s committed line may be reduced or collateral may be liquidated if the collateral is in danger of falling below specified levels. As such, the loss inherent within this portfolio is limited. Schwab records an allowance for loan losses through a charge to earnings based on our estimate of probable losses in the existing portfolio. We review the allowance for loan losses quarterly, taking into consideration current economic conditions, the composition of the existing loan portfolio, past loss experience, and risks inherent in the portfolio to ensure that the allowance for loan losses is maintained at an appropriate level. The methodology to establish an allowance for loan losses utilizes statistical models that estimate prepayments, defaults, and probable losses for the loan segments based on predicted behavior of individual loans within the segments. The methodology considers the effects of borrower behavior and a variety of factors including, but not limited to, interest rates, housing price movements as measured by a housing price index, economic conditions, estimated defaults and foreclosures measured by historical and expected delinquencies, changes in prepayment speeds, LTV ratios, past loss experience, estimates of future loss severities, borrower credit risk, and the adequacy of collateral. The methodology also evaluates concentrations in the loan types, including loan products within those types, year of origination, and geographical distribution of collateral. Probable losses are forecast using a loan-level simulation of the delinquency status of the loans over the term of the loans. The simulation starts with the current relevant risk indicators, including the current delinquent status of each loan, the estimated current LTV ratio (Estimated Current LTV) of each loan, the term and structure of each loan, current key interest rates including U.S. Treasury and LIBOR rates, and borrower FICO scores. The more significant variables in the simulation include delinquency roll rates, loss severity, housing prices, and interest rates. Delinquency roll rates (i.e., the rates at which loans transition through delinquency stages and ultimately result in a loss) are estimated from our historical loss experience adjusted for current trends and market information. Loss severity estimates are based on our historical loss experience and market trends. The estimated loss severity (i.e., loss given default) used in the allowance for loan loss methodology for HELOC loans is higher than that used in the methodology for First Mortgages. Housing price trends are derived from historical home price indices and econometric forecasts of future home values. Factors affecting the home price index include housing inventory, unemployment, interest rates, and inflation expectations. Interest rate projections are based on the current term structure of interest rates and historical volatilities to project various possible future interest rate paths. This methodology results in loss factors that are applied to the outstanding balances to determine the allowance for loan loss for each loan type. Schwab considers loan modifications in which it makes an economic concession to a borrower experiencing financial difficulty to be troubled debt restructurings (TDRs). Nonaccrual, Nonperforming and Impaired loans First Mortgages, HELOCs, PALs, and other loans are placed on nonaccrual status upon becoming 90 days past due as to interest or principal (unless the loans are well-secured and in the process of collection), or when the full timely collection of interest or principal becomes uncertain, including loans to borrowers who have filed for bankruptcy. HELOC loans secured by a second lien are placed on non-accrual status if the associated first lien is 90 days or more delinquent, regardless of the payment status of the HELOC. When a loan is placed on nonaccrual status, the accrued and unpaid interest receivable is reversed and the loan is accounted for on the cash or cost recovery method until qualifying for return to accrual status. Generally, a nonaccrual loan may be returned to accrual status when all delinquent interest and principal is repaid and the borrower demonstrates a sustained period of performance, or when the loan is both well-secured and in the process of collection and collectability is no longer doubtful. Loans on nonaccrual status and other real estate owned are considered nonperforming assets. Nonaccrual loans, other real estate owned, and TDRs are considered impaired assets, as it is probable we will not collect all amounts due. Loan Charge-Offs The Company charges off a loan in the period that it is deemed uncollectible and records a reduction in the allowance for loan losses and the loan balance. Our charge-off policy for First Mortgage and HELOC loans is to assess the value of the property when the loan has been delinquent for 180 days or has been discharged in bankruptcy proceedings, regardless of whether or not the property is in foreclosure, and charge-off the amount of the loan balance in excess of the estimated current value of the underlying property less estimated costs to sell. Equipment, office facilities, and property Equipment, office facilities, and property are recorded at cost net of accumulated depreciation and amortization, except for land, which is recorded at cost. Equipment, office facilities, and property include certain capitalized costs of acquired or internally developed software. Costs for internally developed software are capitalized when the costs relate to development of approved projects for our internal needs that result in additional functionality. Costs related to preliminary project and post-project activities are expensed as incurred. Equipment, office facilities, and property (other than land) are depreciated on a straight-line basis over their estimated useful lives. Estimated useful lives are as follows: Equipment and office facilities 5 to 10 years Buildings 20 to 40 years Software 3 or 5 years (1) Leasehold improvements Lesser of useful life or lease term (1) Amortized over contractual term if less than three years. Equipment, office facilities, and property are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable. Goodwill Goodwill represents the fair value of acquired businesses in excess of the fair value of the individually identified net assets acquired. Goodwill is not amortized but is tested for impairment annually or whenever indications of impairment exist. Impairment exists when the carrying amount of goodwill exceeds its implied fair value, resulting in an impairment charge for this excess. Our annual impairment testing date is April 1 st . Schwab can elect to qualitatively assess goodwill for impairment if it is more likely than not that the fair value of a reporting unit exceeds its carrying value. A qualitative assessment considers macroeconomic and other industry-specific factors, such as trends in short-term and long-term interest rates and the ability to access capital, and Company specific factors such as market capitalization in excess of net assets, trends in revenue generating activities, and merger or acquisition activity. If the Company elects to bypass qualitatively assessing goodwill, or it is not more likely than not that the fair value of a reporting unit exceeds its carrying value, management estimates the fair values of each of the Company’s reporting units (defined as the Company’s businesses for which financial information is available and reviewed regularly by management) and compares it to their carrying values. The estimated fair values of the reporting units are established using an income approach based on a discounted cash flow model that includes significant assumptions about the future operating results and cash flows of each reporting unit, a market approach which compares each reporting unit to comparable companies in their respective industries, as well as a market capitalization analysis. Intangible assets Finite-lived intangible assets are amortized over their useful lives in a manner that best reflects their economic benefit. All intangible assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable. Low-Income Housing Tax Credit (LIHTC) Investments As part of our community reinvestment initiatives, Schwab invests with other institutional investors in funds that make equity investments in multifamily affordable housing properties. The Company receives tax credits and other tax benefits for these investments. We account for investments in qualified affordable housing projects using the proportional amortization method if the applicable requirements are met. The proportional amortization method amortizes the cost of the investment over the period in which the investor expects to receive tax credits and other tax benefits, and the resulting amortization is recognized as a component of taxes on income. The carrying value of LIHTC investments is included in other assets on the consolidated balance sheets. Unfunded commitments related to LIHTC investments are included in accrued expenses and other liabilities on the consolidated balance sheets. Guarantees and indemnifications Schwab recognizes, at the inception of a guarantee, a liability equal to the estimated fair value of the obligation undertaken in issuing the guarantee. The fair values of obligations relating to guarantees are estimated based on transactions for similar guarantees or expected present value measures. Advertising and market development Advertising and market development activities include the cost to produce and distribute marketing campaigns as well as client incentives and discounts. Such costs are generally expensed when incurred. Income taxes Schwab provides for income taxes on all transactions that have been recognized in the consolidated financial statements. Accordingly, deferred tax assets are adjusted to reflect the tax rates at which future taxable amounts will likely be settled or realized. The effects of tax rate changes on future deferred tax assets and deferred tax liabilities, as well as other changes in income tax laws, are recorded in earnings in the period during which such changes are enacted. Unrecognized tax benefits, which are included in accrued expenses and other liabilities, represent the difference between positions taken on tax return filings and estimated potential tax settlement outcomes. Accrued interest relating to unrecognized tax benefits is recorded in taxes on income and penalties are recorded in other expense. Share-based compensation Share-based compensation includes employee and board of director stock options and restricted stock units. Schwab measures compensation expense for these share-based payment arrangements based on their estimated fair values as of the grant date. The fair value of the share-based award is recognized over the vesting period as share-based compensation. Share-based compensation expense is based on units expected to vest and therefore is reduced for estimated forfeitures. Per the Company’s accounting policy election, forfeitures are estimated at the time of grant and reviewed annually based on the Company’s historical forfeiture experience. Share-based compensation expense is adjusted in subsequent periods if actual forfeitures differ from estimated forfeitures. Beginning January 1, 2017, the excess tax benefits or deficiencies from the exercise of stock options and the vesting of restricted stock units are recorded in taxes on income. Fair values of assets and liabilities Fair value is defined as the price that would be received to sell an asset or the price paid to transfer a liability in an orderly transaction between market participants at the measurement date. Fair value measurement accounting guidance describes the fair value hierarchy for disclosing assets and liabilities measured at fair value based on the inputs used to value them. The fair value hierarchy maximizes the use of observable inputs and minimizes the use of unobservable inputs. Observable inputs are based on market pricing data obtained from sources independent of the Company. A quoted price in an active market provides the most reliable evidence of fair value and is generally used to measure fair value whenever available. Unobservable inputs reflect management’s judgment about the assumptions market participants would use in pricing the asset or liability. Where inputs used to measure fair value of an asset or liability are from different levels of the hierarchy, the asset or liability is categorized based on the lowest level input that is significant to the fair value measurement in its entirety. Assessing the significance of a particular input requires judgment. The fair value hierarchy includes three levels based on the objectivity of the inputs as follows: • Level 1 inputs are quoted prices in active markets as of the measurement date for identical assets or liabilities that the Company has the ability to access. • Level 2 inputs are inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. Level 2 inputs include quoted prices for similar assets and liabilities in active markets, and inputs other than quoted prices that are observable for the asset or liability, such as interest rates, benchmark yields, issuer spreads, new issue data, and collateral performance. • Level 3 inputs are unobservable inputs for the asset or liability, and include situations where there is little, if any, market activity for the asset or liability. The Company’s policy is to recognize transfers of financial instruments between levels as of the beginning of the reporting period in which a transfer occurs. Assets and liabilities measured at fair value on a recurring basis Schwab’s assets and liabilities measured at fair value on a recurring basis include certain cash equivalents, certain investments segregated and on deposit for regulatory purposes, other securities owned, and AFS securities. The Company uses the market approach to determine the fair value of assets and liabilities. When available, the Company uses quoted prices in active markets to measure the fair value of assets and liabilities. When utilizing market data and bid-ask spread, the Company uses the price within the bid-ask spread that best represents fair value. When quoted prices do not exist, the Company uses prices obtained from independent third-party pricing services to measure the fair value of investment assets. We generally obtain prices from at least three independent pricing sources for assets recorded at fair value. Our primary independent pricing service provides prices based on observable trades and discounted cash flows that incorporate observable information such as yields for similar types of securities (a benchmark interest rate plus observable spreads) and weighted-average maturity for the same or similar “to-be-issued” securities. We compare the prices obtained from the primary independent pricing service to the prices obtained from the additional independent pricing services to determine if the price obtained from the primary independent pricing service is reasonable. Schwab does not adjust the prices received from independent third-party pricing services unless such prices are inconsistent with the definition of fair value and result in a material difference in the recorded amounts. Fair value of other financial instruments Descriptions of the valuation methodologies and assumptions used to estimate the fair value of other financial instruments are described below. Our financial instruments not recorded at fair value but for which fair value can be approximated and disclosed include: • Cash and cash equivalents are short-term in nature and accordingly are recorded at amounts that approximate fair value. • Cash and investments segregated and on deposit for regulatory purposes include cash and securities purchased under resale agreements. Securities purchased under resale agreements are short-term in nature and are backed by collateral that both exceeds the carrying value of the resale agreement and is highly liquid in nature. Accordingly, the carrying values of these financial instruments approximate their fair values. • Receivables from/payables to brokers, dealers, and clearing organizations are short-term in nature, recorded at contractual amounts and historically have been settled at those values. Accordingly, the carrying values of these financial instruments approximate their fair values. • Receivables from/payables to brokerage clients — net are short-term in nature, recorded at contractual amounts and historically have been settled at those values. Accordingly, the carrying values of these financial instruments approximate their fair values. • HTM securities – The fair values of HTM securities are obtained using an independent third-party pricing service similar to investment assets recorded at fair value as discussed above. • Bank loans – The fair values of First Mortgages and HELOCs are estimated based on prices of mortgage-backed securities collateralized by similar types of loans. PALs are non-purpose revolving lines of credit secured by eligible assets; accordingly, the carrying values of these loans approximate their fair values. • Financial instruments included in other assets primarily consist of LIHTC investments, cost method investments and FHLB stock, whose carrying values approximate their fair values. FHLB stock is recorded at par, which approximates its fair value. • Bank deposits – Substantially all bank deposits have no stated maturity and are recorded at the amount payable on demand as of the balance sheet date. The carrying values of these deposits approximate their fair values. • Financial instruments included in accrued expenses and other liabilities consist of drafts payable and certain amounts due under contractual obligations, including unfunded LIHTC commitments. The carrying values of these instruments approximate their fair values. • Short-term borrowings consist of commercial paper, borrowings on Schwab’s uncommitted, unsecured bank credit lines, and funds drawn on Schwab Bank’s secured credit facility with the Federal Home Loan Bank of San Francisco. Due to the short-term nature of these borrowings, carrying value approximates fair value. • Long-term debt – Except for the finance lease obligation, the fair values of long-term debt are estimated using indicative, non-binding quotes from independent brokers. The Company validates indicative prices for its debt through comparison to other independent non-binding quotes. The finance lease obligation is recorded at carrying value, which approximates fair value. • Firm commitments to extend credit – Schwab extends credit to banking clients through HELOCs and PALs. The Company considers the fair value of these unused commitments to not be material because the interest rates earned on these balances are based on floating interest rates that reset monthly. New Accounting Standards Adoption of New Accounting Standards Standard Description Required Date of Adoption Effects on the Financial Statements or Other Significant Matters ASU 2016-09, “Stock Compensation - Improvements to Employee Share-Based Payment Accounting (Topic 718)” Requires entities to recognize the income tax effects for the difference between GAAP and federal income tax treatment (i.e., excess tax benefit or deficiency) of share-based awards in the income statement when the awards vest or are settled, rather than recording such effects in additional paid-in capital. Provides entities with an accounting policy election to account for the impact of forfeitures of awards on compensation expense as they occur or continue with the current practice of estimating forfeitures at the grant date to determine the number of awards expected to vest and adjusting that estimate as necessary. January 1, 2017 The Company’s taxes on income were reduced by approximately $87 million in 2017. Future effects will depend on the Company’s share price, restricted stock vesting, and the volume of equity incentive options exercised. New Accounting Standards Not Yet Adopted Standard Description Required Date of Adoption Effects on the Financial Statements or Other Significant Matters ASU 2014-09, “Revenue from Contracts with Customers (Topic 606)” and related ASUs Clarifies that revenue from contracts with clients should be recognized in a manner that depicts the timing of the related transfer of goods or performance of services at an amount that reflects the expected consideration. Adoption allows either full or modified retrospective transition. Full retrospective transition will require a cumulative effect adjustment to retained earnings as of the earliest comparative period presented. Modified retrospective transition will require a cumulative effect adjustment to retained earnings as of the beginning of the reporting period in which the entity first applies the new guidance. January 1, 2018 The guidance does not apply to revenue earned from the Company’s loans and securities. Accordingly, net interest revenue will not be impacted. The primary impact for the Company will be the capitalization of sales commissions paid to employees for obtaining new contracts with clients on the consolidated balance sheets. These capitalized costs will result in an asset of $219 million and a related deferred tax liability of $51 million upon adoption. The asset will subsequently be amortized to expense over time as the related revenues are recognized. The Company does not expect this guidance will have a material impact on its EPS. Standard Description Required Date of Adoption Effects on the Financial Statements or Other Significant Matters ASU 2016-01, “Financial Instruments - Overall (Subtopic 825-10)” Requires: (i) equity investments to be measured at fair value, with changes in fair value recognized in net income, unless the equity method is applied or the equity investments do not have readily determinable fair values in which case a practical alternative may be elected; (ii) use of an exit price when measuring the fair value of financial instruments for disclosures; (iii) separate presentation of financial assets and liabilities by measurement category and form of instrument on the balance sheet or in the accompanying notes. January 1, 2018 The Company does not expect this guidance will have a material impact on its financial statements, including EPS. ASU 2016-02, “Leases (Topic 842)” Amends the accounting for leases by lessees and lessors. The primary change from the new guidance is the recognition of right-of-use assets and lease liabilities by lessees for those leases classified as operating leases. Additional changes include accounting for lease origination and executory costs, required lessee reassessments during the lease term due to changes in circumstances, and expanded lease disclosures. January 1, 2019 The Company does not expect this guidance will have a material impact on its EPS, but it will result in a gross up of the consolidated balance sheets due to recognition of right-of-use assets and lease liabilities based on the present value of remaining operating lease payments (see Note 13 for the undiscounted rental commitments for operating leases). The Company is evaluating its adoption method due to a recently proposed ASU that provides an alternative adoption method. The Company is refining its methodology to estimate the right of use assets and lease liabilities and working on system updates to apply the lease accounting changes. The full population of contracts that may be subject to balance sheet recognition is still being evaluated, but is nearly complete. The Company has further work to perform related to disclosures. Standard Description Required Date of Adoption Effects on the Financial Statements or Other Significant Matters ASU 2016-13, “Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments” Provides guidance for recognizing impairment of most debt instruments measured at amortized cost, including loans and HTM debt securities. Requires estimating current expected credit losses (CECL) over the remaining life of an instrument or a portfolio of instruments with similar risk characteristics based on relevant information about past events, current conditions, and reasonable forecasts. The initial estimate of, and the subsequent changes in, CECL will be recognized as credit loss expense through current earnings and will be reflected as an allowance for credit losses offsetting the carrying value of the financial instrument(s) on the balance sheet. Amends the OTTI model for |
Receivables from and Payables t
Receivables from and Payables to Brokerage Clients | 12 Months Ended |
Dec. 31, 2017 | |
Receivables [Abstract] | |
Receivables from and Payables to Brokerage Clients | Receivables from and Payables to Brokerage Clients Receivables from and payables to brokerage clients are detailed below: December 31, 2017 2016 Receivables Margin loans, net of allowance for doubtful accounts $ 18,331 $ 15,257 Other brokerage receivables 2,245 1,898 Receivables from brokerage clients — net $ 20,576 $ 17,155 Payables Interest-bearing payables $ 22,840 $ 28,336 Non-interest-bearing payables 8,403 7,558 Payables to brokerage clients $ 31,243 $ 35,894 At December 31, 2017 and 2016 , approximately 22% and 23% , respectively, of CS&Co’s total client accounts were located in California. |
Other Securities Owned
Other Securities Owned | 12 Months Ended |
Dec. 31, 2017 | |
Other Securities Owned [Abstract] | |
Other Securities Owned | Other Securities Owned A summary of other securities owned is as follows: December 31, 2017 2016 Equity and bond mutual funds $ 318 $ 272 Schwab Funds ® money market funds 135 108 State and municipal debt obligations 52 41 Equity, U.S. Government and corporate debt, and other securities 34 28 Total other securities owned $ 539 $ 449 Equity and bond mutual funds include inventory maintained to facilitate certain Schwab Funds and third-party mutual fund clients’ transactions, and investments made relating to our deferred compensation plan. The positions in Schwab Funds ® money market funds arise from certain overnight funding of clients’ redemption, check-writing, and debit card activities. State and municipal debt obligations, equity, U.S. Government and corporate debt, and other securities include securities held to meet clients’ trading activities. |
Investment Securities
Investment Securities | 12 Months Ended |
Dec. 31, 2017 | |
Investments, Debt and Equity Securities [Abstract] | |
Investment Securities | Investment Securities The amortized cost, gross unrealized gains and losses, and fair value of AFS and HTM securities are as follows: December 31, 2017 Amortized Gross Unrealized Gross Unrealized Fair Available for sale securities: U.S. agency mortgage-backed securities $ 20,915 $ 53 $ 39 $ 20,929 U.S. Treasury securities 9,583 — 83 9,500 Asset-backed securities (1) 9,019 34 6 9,047 Corporate debt securities (2) 6,154 16 1 6,169 Certificates of deposit 2,040 2 1 2,041 U.S. agency notes 1,914 — 8 1,906 Commercial paper (2) 313 — — 313 Foreign government agency securities 51 — 1 50 Non-agency commercial mortgage-backed securities 40 — — 40 Total available for sale securities $ 50,029 $ 105 $ 139 $ 49,995 Held to maturity securities: U.S. agency mortgage-backed securities $ 101,197 $ 290 $ 1,034 $ 100,453 Asset-backed securities (1) 12,937 127 2 13,062 Corporate debt securities (2) 4,078 13 5 4,086 U.S. state and municipal securities 1,247 57 — 1,304 Non-agency commercial mortgage-backed securities 994 10 5 999 U.S. Treasury securities 223 — 3 220 Certificates of deposit 200 — — 200 Foreign government agency securities 50 — 1 49 Total held to maturity securities $ 120,926 $ 497 $ 1,050 $ 120,373 December 31, 2016 Available for sale securities: U.S. agency mortgage-backed securities $ 33,167 $ 120 $ 92 $ 33,195 U.S. Treasury securities 8,679 3 59 8,623 Asset-backed securities (1) 20,520 29 214 20,335 Corporate debt securities (2) 9,850 20 18 9,852 Certificates of deposit 2,070 2 1 2,071 U.S. agency notes 1,915 — 8 1,907 Commercial paper (2) 214 — — 214 Non-agency commercial mortgage-backed securities 45 — — 45 U.S. state and municipal securities 1,167 2 46 1,123 Total available for sale securities $ 77,627 $ 176 $ 438 $ 77,365 Held to maturity securities: U.S. agency mortgage-backed securities $ 72,439 $ 324 $ 1,086 $ 71,677 Asset-backed securities (1) 941 — — 941 Corporate debt securities (2) 436 — — 436 U.S. state and municipal securities 68 1 1 68 Non-agency commercial mortgage-backed securities 997 11 4 1,004 U.S. Treasury securities 223 — 4 219 Commercial paper (2) 99 — — 99 Total held to maturity securities $ 75,203 $ 336 $ 1,095 $ 74,444 (1) Approximately 42% and 47% of Asset-backed securities held as of December 31, 2017 and 2016, respectively, were Federal Family Education Loan Program Asset-Backed Securities. Asset-backed securities collateralized by credit cards represented approximately 40% and 36% of the asset-backed securities held as of December 31, 2017 and 2016, respectively. (2) As of December 31, 2017 and 2016, approximately 41% and 49% , respectively, of the total AFS and HTM investments in Corporate debt securities and Commercial paper were issued by institutions in the financial services industry. As of December 31, 2017 and 2016, approximately 22% and 19% of the holdings of these securities were issued by institutions in the information technology industry. The increase in the HTM portfolio at December 31, 2017 compared to December 31, 2016 was primarily attributable to the transfer of $24.7 billion of investment securities from the AFS category to the HTM category during the first quarter of 2017. These securities had a total net unrealized loss of $227 million before income tax in AOCI on the date of transfer. The transfer was made to mitigate the potential volatility in regulatory capital from changes in market values in the AFS securities portfolio and the related impact to AOCI once Schwab crosses $250 billion in consolidated assets. The year after Schwab surpasses $250 billion in consolidated assets, it can no longer exclude AOCI from regulatory capital. The transfer included U.S. agency mortgage-backed securities, asset-backed securities, corporate debt securities, and U.S. state and municipal securities. The unrealized holding gains and losses on the date of transfer, are reported as a separate component of AOCI and as an adjustment to the purchase premium and discount on the securities transferred. The separate component of AOCI will be amortized or accreted into interest income over the remaining life of the securities transferred, offsetting the revised premium or discount amortization or accretion on the transferred assets. Schwab Bank maintains a secured credit facility with the FHLB, and certain investment securities are pledged as collateral in order to secure borrowing capacity. At December 31, 2017 , the Company had pledged securities with a fair value of $24.2 billion with the FHLB. Schwab Bank also pledges certain investment securities as collateral to secure borrowing capacity at the FRB discount window, and had pledged securities with a fair value of $2.5 billion as collateral for this facility at December 31, 2017 . In addition, Schwab Bank pledges securities issued by federal agencies to secure certain trust deposits. The fair value of these pledged securities was $923 million at December 31, 2017 . Securities with unrealized losses, aggregated by category and period of continuous unrealized loss, are as follows: Less than 12 months Total December 31, 2017 Fair Unrealized Fair Unrealized Fair Unrealized Available for sale securities: U.S. agency mortgage-backed securities $ 5,696 $ 21 $ 2,548 $ 18 $ 8,244 $ 39 U.S. Treasury securities 4,625 11 4,875 72 9,500 83 Asset-backed securities 904 3 424 3 1,328 6 Corporate debt securities 736 1 120 — 856 1 Certificates of deposit 799 1 — — 799 1 U.S. agency notes 99 — 1,807 8 1,906 8 Foreign government agency securities 50 1 — — 50 1 Total $ 12,909 $ 38 $ 9,774 $ 101 $ 22,683 $ 139 Held to maturity securities: U.S. agency mortgage-backed securities $ 42,102 $ 310 $ 24,753 $ 724 $ 66,855 $ 1,034 Asset-backed securities 1,124 2 72 — 1,196 2 Corporate debt securities 1,078 5 — — 1,078 5 Non-agency commercial mortgage-backed securities 607 5 — — 607 5 U.S. Treasury securities 220 3 — — 220 3 Foreign government agency securities 49 1 — — 49 1 Total $ 45,180 $ 326 $ 24,825 $ 724 $ 70,005 $ 1,050 Total securities with unrealized losses (1) $ 58,089 $ 364 $ 34,599 $ 825 $ 92,688 $ 1,189 December 31, 2016 Available for sale securities: U.S. agency mortgage-backed securities $ 14,816 $ 69 $ 2,931 $ 23 $ 17,747 $ 92 U.S. Treasury securities 6,926 59 — — 6,926 59 Asset-backed securities 1,670 13 9,237 201 10,907 214 Corporate debt securities 2,407 17 653 1 3,060 18 Certificates of deposit 474 — 100 1 574 1 U.S. agency notes 1,907 8 — — 1,907 8 U.S. state and municipal securities 956 46 — — 956 46 Total $ 29,156 $ 212 $ 12,921 $ 226 $ 42,077 $ 438 Held to maturity securities: U.S. agency mortgage-backed securities $ 51,361 $ 1,086 $ — $ — $ 51,361 $ 1,086 Non-agency commercial mortgage-backed securities 591 4 — — 591 4 U.S. Treasury securities 219 4 — — 219 4 U.S. state and municipal securities 14 1 — — 14 1 Total $ 52,185 $ 1,095 $ — $ — $ 52,185 $ 1,095 Total securities with unrealized losses (2) $ 81,341 $ 1,307 $ 12,921 $ 226 $ 94,262 $ 1,533 (1) The number of investment positions with unrealized losses totaled 251 for AFS securities and 938 for HTM securities. (2) The number of investment positions with unrealized losses totaled 627 for AFS securities and 612 for HTM securities. At December 31, 2017, substantially all securities in the investment portfolios were rated investment grade. U.S. agency mortgage-backed securities do not have explicit credit ratings; however, management considers these to be of the highest credit quality and rating given the guarantee of principal and interest by the U.S. government or U.S. government-sponsored enterprises. Management evaluates whether investment securities are OTTI on a quarterly basis as described in Note 2. Amounts recognized as OTTI in earnings or other comprehensive income were immaterial in 2017, 2016, and 2015. As of December 31, 2017 and 2016, the Company did not hold any securities on which OTTI was previously recognized. The maturities of AFS and HTM securities are as follows: December 31, 2017 Within After 1 year through After 5 years through After Total Available for sale securities: U.S. agency mortgage-backed securities (1) $ 61 $ 2,253 $ 8,282 $ 10,333 $ 20,929 U.S. Treasury securities 2,515 6,985 — — 9,500 Asset-backed securities 251 6,924 1,261 611 9,047 Corporate debt securities 3,135 3,034 — — 6,169 Certificates of deposit 575 1,466 — — 2,041 U.S. agency notes 1,658 248 — — 1,906 Commercial paper 313 — — — 313 Foreign government agency securities — 50 — — 50 Non-agency commercial mortgage-backed securities (1) — — — 40 40 Total fair value $ 8,508 $ 20,960 $ 9,543 $ 10,984 $ 49,995 Total amortized cost $ 8,517 $ 20,999 $ 9,546 $ 10,967 $ 50,029 Weighted-average yield (2) 1.53 % 1.63 % 1.72 % 1.79 % 1.66 % Held to maturity securities: U.S. agency mortgage-backed securities (1) $ 441 $ 12,680 $ 29,511 $ 57,821 $ 100,453 Asset-backed securities — 1,003 6,245 5,814 13,062 Corporate debt securities 351 3,206 454 75 4,086 U.S. state and municipal securities — — 121 1,183 1,304 Non-agency commercial mortgage-backed securities (1) — 362 — 637 999 U.S. Treasury securities — — 220 — 220 Certificates of deposit — 200 — — 200 Foreign government agency securities — 49 — — 49 Total fair value $ 792 $ 17,500 $ 36,551 $ 65,530 $ 120,373 Total amortized cost $ 792 $ 17,486 $ 36,544 $ 66,104 $ 120,926 Weighted-average yield (2) 1.97 % 2.45 % 2.35 % 2.16 % 2.26 % (1) Mortgage-backed securities have been allocated to maturity groupings based on final contractual maturities. Actual maturities will differ from final contractual maturities because borrowers on a certain portion of loans underlying these securities have the right to prepay their obligations. (2) The weighted-average yield is computed using the amortized cost at December 31, 2017. Proceeds and gross realized gains and losses from sales of AFS securities are as follows: Year Ended December 31, 2017 2016 2015 Proceeds $ 8,617 $ 5,537 $ 2,424 Gross realized gains 12 4 1 Gross realized losses — — 1 |
Bank Loans and Related Allowanc
Bank Loans and Related Allowance for Loan Losses | 12 Months Ended |
Dec. 31, 2017 | |
Receivables [Abstract] | |
Bank Loans and Related Allowance for Loan Losses | Bank Loans and Related Allowance for Loan Losses The composition of bank loans and delinquency analysis by loan type is as follows: December 31, 2017 Current 30-59 days 60-89 days >90 days past (3) Total past due and other Total Allowance for loan Total First Mortgages (1,2) $ 9,983 $ 14 $ 2 $ 17 $ 33 $ 10,016 $ 16 $ 10,000 HELOCs (1,2) 1,928 — 3 12 15 1,943 8 1,935 Pledged asset lines 4,361 4 4 — 8 4,369 — 4,369 Other 176 — — — — 176 2 174 Total bank loans $ 16,448 $ 18 $ 9 $ 29 $ 56 $ 16,504 $ 26 $ 16,478 December 31, 2016 First Mortgages (1,2) $ 9,100 $ 15 $ 3 $ 16 $ 34 $ 9,134 $ 17 $ 9,117 HELOCs (1,2) 2,336 2 2 10 14 2,350 8 2,342 Pledged asset lines 3,846 4 1 — 5 3,851 — 3,851 Other 94 — — — — 94 1 93 Total bank loans $ 15,376 $ 21 $ 6 $ 26 $ 53 $ 15,429 $ 26 $ 15,403 (1) First Mortgages and HELOCs include unamortized premiums and discounts and direct origination costs of $77 million and $78 million at December 31, 2017 and 2016 , respectively. (2) At December 31, 2017 and 2016 , 48% of the First Mortgage and HELOC portfolios were concentrated in California. These loans have performed in a manner consistent with the portfolio as a whole. (3) There were no loans accruing interest that were contractually 90 days or more past due at December 31, 2017 or 2016 . Schwab Bank maintains a secured credit facility with the FHLB and loan collateral, including First Mortgages and HELOCs, is pledged at the FHLB in order to secure borrowing capacity. The amount of loan collateral pledged was $11.1 billion at December 31, 2017 . Substantially all of the bank loans were collectively evaluated for impairment at both December 31, 2017 and 2016 . Changes in the allowance for loan losses were as follows: December 31, 2017 December 31, 2016 December 31, 2015 First Mortgages HELOCs Other Total (1) First Mortgages HELOCs Other Total (1) First Mortgages HELOCs Total (1) Balance at beginning of year $ 17 $ 8 $ 1 $ 26 $ 20 $ 11 $ — $ 31 $ 29 $ 13 $ 42 Charge-offs (2 ) (1 ) — (3 ) (1 ) (1 ) — (2 ) (1 ) (2 ) (3 ) Recoveries 1 1 1 3 1 1 — 2 1 2 3 Provision for loan losses — — — — (3 ) (3 ) 1 (5 ) (9 ) (2 ) (11 ) Balance at end of year $ 16 $ 8 $ 2 $ 26 $ 17 $ 8 $ 1 $ 26 $ 20 $ 11 $ 31 (1) All PALs were fully collateralized by securities with fair values in excess of borrowings at December 31, 2017 , 2016 , and 2015 . A summary of impaired bank loan related assets is as follows: December 31, 2017 2016 Nonaccrual loans (1) $ 28 $ 26 Other real estate owned (2) 3 5 Total nonperforming assets 31 31 Troubled debt restructurings 11 14 Total impaired assets $ 42 $ 45 (1) Nonaccrual loans include nonaccrual troubled debt restructurings. (2) Included in Other assets on the consolidated balance sheets. Credit Quality In addition to monitoring delinquency, Schwab monitors the credit quality of First Mortgages and HELOCs by stratifying the portfolios by the following: • Year of origination; • Borrower FICO scores at origination (Origination FICO); • Updated borrower FICO scores (Updated FICO); • Loan-to-value ratios at origination (Origination LTV); and • Estimated current LTV. Borrowers’ FICO scores are provided by an independent third-party credit reporting service and were last updated in December 2017 . The Origination LTV and Estimated Current LTV for a HELOC include any first lien mortgage outstanding on the same property at the time of the HELOC’s origination. The Estimated Current LTV for each loan is estimated by reference to a home price appreciation index. The credit quality indicators of the bank loan portfolio are detailed below: December 31, 2017 Balance Weighted Average Utilization (1) Percent of Loans that are on First Mortgages: Estimated Current LTV < 70% $ 9,046 775 N/A 0.09 % >70% – < 90% 961 769 N/A 0.46 % >90% – < 100% 5 714 N/A 10.49 % >100% 4 713 N/A 6.23 % Total $ 10,016 775 N/A 0.14 % HELOCs: Estimated Current LTV (2) < 70% $ 1,773 772 32 % 0.18 % >70% – < 90% 148 755 47 % 0.84 % >90% – < 100% 14 742 64 % 2.85 % >100% 8 718 72 % 4.91 % Total $ 1,943 770 33 % 0.27 % Pledged asset lines: Weighted Average LTV (2) = 70% $ 4,369 765 41 % — December 31, 2016 Balance Weighted Average Utilization (1) Percent of Loans that are on First Mortgages: Estimated Current LTV < 70% $ 8,350 774 N/A 0.04 % >70% – < 90% 743 768 N/A 0.35 % >90% – < 100% 21 747 N/A 2.08 % >100% 20 709 N/A 14.50 % Total $ 9,134 773 N/A 0.10 % HELOCs: Estimated Current LTV (2) < 70% $ 2,070 771 35 % 0.12 % >70% – < 90% 234 757 50 % 0.40 % >90% – < 100% 29 747 66 % 1.74 % >100% 17 728 70 % 3.73 % Total $ 2,350 769 36 % 0.20 % Pledged asset lines: Weighted Average LTV (2) = 70% $ 3,851 763 46 % — (1) The Utilization Rate is calculated using the outstanding balance divided by the associated total line of credit. (2) Represents the LTV for the full line of credit (drawn and undrawn). N/A Not applicable. December 31, 2017 First Mortgages HELOCs Year of origination Pre-2013 $ 1,478 $ 1,349 2013 1,326 147 2014 530 116 2015 1,218 128 2016 2,886 111 2017 2,578 92 Total $ 10,016 $ 1,943 Origination FICO <620 $ 6 $ 1 620 – 679 89 10 680 – 739 1,569 365 > 740 8,352 1,567 Total $ 10,016 $ 1,943 Origination LTV < 70% $ 7,569 $ 1,360 >70% – < 90% 2,441 574 >90% – < 100% 6 9 Total $ 10,016 $ 1,943 December 31, 2016 First Mortgages HELOCs Year of origination Pre-2013 $ 2,136 $ 1,765 2013 1,746 193 2014 685 152 2015 1,458 146 2016 3,109 94 Total $ 9,134 $ 2,350 Origination FICO <620 $ 8 $ — 620 – 679 92 13 680 – 739 1,427 432 > 740 7,607 1,905 Total $ 9,134 $ 2,350 Origination LTV < 70% $ 6,865 $ 1,628 >70% – < 90% 2,260 709 >90% – < 100% 9 13 Total $ 9,134 $ 2,350 At December 31, 2017 , First Mortgage loans of $9.0 billion had adjustable interest rates. Substantially all of these mortgages have initial fixed interest rates for three to ten years and interest rates that adjust annually thereafter. Approximately 33% of the balance of these mortgages consisted of loans with interest-only payment terms. The interest rates on approximately 58% of the balance of these interest-only loans are not scheduled to reset for three or more years. Schwab’s mortgage loans do not include interest terms described as temporary introductory rates below current market rates. The HELOC product has a 30 -year loan term with an initial draw period of ten years from the date of origination. After the initial draw period, the balance outstanding at such time is converted to a 20 -year amortizing loan. The interest rate during the initial draw period and the 20 -year amortizing period is a floating rate based on the prime rate plus a margin. HELOCs that convert to an amortizing loan may experience higher delinquencies and higher loss rates than those in the initial draw period. The allowance for loan loss methodology takes this increased inherent risk into consideration. The following table presents when current outstanding HELOCs will convert to amortizing loans: December 31, 2017 Balance Converted to amortizing loan by period end $ 437 Within 1 year 559 > 1 year – 3 years 204 > 3 years – 5 years 149 > 5 years 594 Total $ 1,943 At December 31, 2017 , $1.5 billion of the HELOC portfolio was secured by second liens on the associated properties. Second lien mortgage loans typically possess a higher degree of credit risk given the subordination to the first lien holder in the event of default. In addition to the credit monitoring activities described previously, Schwab also monitors credit risk by reviewing the delinquency status of the first lien loan on the associated property. At December 31, 2017 , the borrowers on approximately 38% of HELOC loan balances outstanding only paid the minimum amount of interest due. |
Equipment, Office Facilities, a
Equipment, Office Facilities, and Property | 12 Months Ended |
Dec. 31, 2017 | |
Property, Plant and Equipment [Abstract] | |
Equipment, Office Facilities, and Property | Equipment, Office Facilities, and Property Equipment, office facilities, and property are detailed below: December 31, 2017 2016 Software $ 1,490 $ 1,335 Buildings 810 807 Leasehold improvements 357 342 Information technology equipment 326 299 Furniture and equipment 193 190 Land 167 168 Construction in progress 142 26 Telecommunications equipment 66 67 Total equipment, office facilities, and property 3,551 3,234 Accumulated depreciation and amortization (2,080 ) (1,935 ) Total equipment, office facilities, and property — net $ 1,471 $ 1,299 Depreciation and amortization expense for equipment, office facilities, and property was $232 million , $197 million , and $179 million in 2017 , 2016 , and 2015 , respectively. |
Intangible Assets and Goodwill
Intangible Assets and Goodwill | 12 Months Ended |
Dec. 31, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets and Goodwill | Intangible Assets and Goodwill Intangible assets and goodwill are detailed below: December 31, 2017 December 31, 2016 Gross Carrying Accumulated Net Carrying Gross Carrying Accumulated Net Carrying Client relationships $ 274 $ 189 $ 85 $ 274 $ 169 $ 105 Technology 89 66 23 89 56 33 Trade name 15 15 — 16 10 6 Total intangible assets $ 378 $ 270 $ 108 $ 379 $ 235 $ 144 Amortization expense for intangible assets was $37 million in both 2017 and 2016 , and $45 million in 2015 . Estimated future annual amortization expense for intangible assets as of December 31, 2017 , is as follows: 2018 $ 30 2019 27 2020 22 2021 15 2022 11 Thereafter 2 Total $ 107 The changes in the carrying amount of goodwill, as allocated to our reportable segments for purposes of testing goodwill for impairment are presented in the following table: Investor Advisor Total Balance at December 31, 2015 $ 1,096 $ 131 $ 1,227 Goodwill acquired and other changes during the period — — — Balance at December 31, 2016 1,096 131 1,227 Goodwill acquired and other changes during the period — — — Balance at December 31, 2017 $ 1,096 $ 131 $ 1,227 In 2017, Schwab elected to bypass the qualitative goodwill impairment assessment. As of April 1, 2017, we have determined through quantitative testing that the fair value significantly exceeded the carrying value of each of the reporting units, and concluded that goodwill was not impaired. Schwab did not recognize any goodwill impairment in any of the years presented. |
Other Assets
Other Assets | 12 Months Ended |
Dec. 31, 2017 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Other Assets | Other Assets The components of other assets are as follows: December 31, 2017 2016 Accounts receivable (1) $ 461 $ 451 Interest and dividends receivable 413 325 FHLB stock (2) 405 81 Other investments (3) 376 243 Prepaid expenses 126 90 Deferred tax asset — net 76 143 Other 92 75 Total other assets $ 1,949 $ 1,408 (1) Accounts receivable includes accrued service fee income and a receivable from our loan servicer. (2) Investments in stock of the FHLB can only be sold to the issuer at its par value. Any cash dividends received from these investments are recognized as interest income in the consolidated statements of income. (3) Predominantly CRA-related, including LIHTC investments. |
Variable Interest Entities
Variable Interest Entities | 12 Months Ended |
Dec. 31, 2017 | |
Variable Interest Entities [Abstract] | |
Variable Interest Entities | Variable Interest Entities As of December 31, 2017 and 2016 , all of Schwab’s involvement with VIEs is through Schwab Bank’s CRA-related investments and most of those related to LIHTC investments. As part of Schwab Bank’s community reinvestment initiatives, Schwab Bank invests with other institutional investors in funds that make equity investments in multifamily affordable housing properties. Schwab Bank receives tax credits and other tax benefits for these investments. Schwab Bank’s LIHTC investments are accounted for using the proportional amortization method which amortizes the cost of the investment over the period in which the investor expects to receive tax credits and other tax benefits, and the resulting amortization is included in taxes on income on the consolidated statements of income. Aggregate assets, liabilities and maximum exposure to loss The aggregate assets, liabilities, and maximum exposure to loss from those VIEs in which Schwab holds a variable interest, but as to which we have concluded it is not the primary beneficiary, are summarized in the table below: December 31, 2017 December 31, 2016 Aggregate Aggregate Maximum exposure Aggregate Aggregate Maximum exposure to loss LIHTC Investments (1) $ 304 $ 203 $ 304 $ 189 $ 135 $ 189 Other CRA Investments (2) 69 — 125 60 — 80 Total $ 373 $ 203 $ 429 $ 249 $ 135 $ 269 (1) Aggregate assets and aggregate liabilities are included in other assets and accrued expenses and other liabilities, respectively, on the consolidated balance sheets. (2) Other CRA investments are recorded using either the cost method, equity method, or as HTM securities. Aggregate assets are included in other assets, HTM securities, or bank loans – net on the consolidated balance sheets. Schwab’s maximum exposure to loss would result from the loss of the investments, including any committed amounts. During the years ended December 31, 2017 and 2016 , Schwab did not provide or intend to provide financial or other support to the VIEs that it was not contractually required to provide. Schwab Bank’s funding of these remaining commitments is dependent upon the occurrence of certain conditions, and Schwab Bank expects to pay substantially all of these commitments between 2018 and 2021 . |
Bank Deposits
Bank Deposits | 12 Months Ended |
Dec. 31, 2017 | |
Banking and Thrift [Abstract] | |
Bank Deposits | Bank Deposits Bank deposits consist of interest-bearing and non-interest-bearing deposits as follows: December 31, 2017 2016 Interest-bearing deposits: Deposits swept from brokerage accounts $ 148,212 $ 141,146 Checking 13,388 13,842 Savings and other 7,264 7,792 Total interest-bearing deposits 168,864 162,780 Non-interest-bearing deposits 792 674 Total bank deposits $ 169,656 $ 163,454 |
Borrowings
Borrowings | 12 Months Ended |
Dec. 31, 2017 | |
Debt Disclosure [Abstract] | |
Borrowings | Borrowings CSC’s senior notes are unsecured obligations and rank equally with the other unsecured senior debt. CSC may redeem some or all of the senior notes of each series prior to their maturity, subject to certain restrictions, and the payment of an applicable make-whole premium in certain instances. Interest is payable semi-annually for the senior notes. The following table lists long-term debt by instrument outstanding as of December 31, 2017 and 2016 . Date of Principal Amount Outstanding Issuance 2017 2016 Fixed-Rate Senior Notes: 1.500% due March 10, 2018 (1) 03/10/15 $ 625 $ 625 2.200% due July 25, 2018 07/25/13 275 275 4.450% due July 22, 2020 07/22/10 700 700 3.225% due September 1, 2022 08/29/12 256 256 2.650% due January 25, 2023 12/07/17 800 — 3.000% due March 10, 2025 03/10/15 375 375 3.450% due February 13, 2026 11/13/15 350 350 3.200% due March 2, 2027 03/02/17 650 — 3.200% due January 25, 2028 12/07/17 700 — Total fixed-rate senior notes 4,731 2,581 6.375% Medium-Term Notes — 250 5.450% Finance lease obligation (2) 06/04/04 61 68 Unamortized discount, net (14 ) (13 ) Debt issuance costs (25 ) (10 ) Total long-term debt $ 4,753 $ 2,876 (1) Redeemed on February 8, 2018. See Note 25. (2) Schwab has a finance lease obligation related to an office building and land under a 20 -year lease. The remaining finance lease obligation is being reduced by a portion of the lease payments over the remaining lease term through June 30, 2024. Annual maturities on long-term debt outstanding at December 31, 2017 , are as follows: 2018 $ 908 2019 8 2020 709 2021 9 2022 266 Thereafter 2,892 Total maturities 4,792 Unamortized discount, net (14 ) Debt issuance costs (25 ) Total long-term debt $ 4,753 Short-term borrowings: Schwab Bank maintains a secured credit facility with the FHLB. Amounts available under this facility are dependent on the amount of Schwab Bank’s First Mortgages, HELOCs, and the fair value of certain of Schwab Bank’s investment securities that are pledged as collateral. As of December 31, 2017 , the collateral pledged by Schwab Bank provided a total borrowing capacity of $32.3 billion of which $15.0 billion was outstanding. No amounts were outstanding under this facility as of December 31, 2016 . The Company could increase its borrowing capacity by pledging additional securities. As a condition of the FHLB borrowings, Schwab Bank is required to hold FHLB stock, with the investment recorded in other assets on the consolidated balance sheets. The investment in FHLB was $405 million and $81 million at December 31, 2017 and 2016 , respectively. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Loan Portfolio: Schwab Bank provides a co-branded loan origination program for Schwab Bank clients (the Program) with Quicken Loans, Inc. (Quicken Loans ® ). Pursuant to the Program, Quicken Loans originates and services First Mortgages and HELOCs for Schwab Bank clients. Under the Program, Schwab Bank purchases certain First Mortgages and HELOCs that are originated by Quicken Loans. Schwab Bank purchased First Mortgages of $2.8 billion and $3.3 billion during 2017 and 2016 , respectively. Schwab purchased HELOCs with commitments of $461 million and $440 million during 2017 and 2016 , respectively. The Company’s commitments to extend credit on bank lines of credit and to purchase First Mortgages are as follows: December 31, 2017 2016 Commitments to extend credit related to unused HELOCs, PALs, and other lines of credit $ 10,060 $ 8,445 Commitments to purchase First Mortgage loans 308 466 Total $ 10,368 $ 8,911 Operating leases: Schwab has non-cancelable operating leases for office space and equipment. Future annual minimum rental commitments under these leases, net of contractual subleases are as follows: December 31, 2017 Operating Subleases Net 2018 $ 137 $ 6 $ 131 2019 119 4 115 2020 109 4 105 2021 86 4 82 2022 68 2 66 Thereafter 310 1 309 Total $ 829 $ 21 $ 808 Certain leases contain provisions for renewal options, purchase options, and rent escalations based on increases in certain costs incurred by the lessor. Rent expense relating to operating leases was $136 million , $123 million , and $116 million in 2017 , 2016 , and 2015 , respectively. Purchase obligations: Schwab has purchase obligations for services such as advertising and marketing, telecommunications, professional services, and hardware- and software-related agreements. The Company has purchase obligations as follows: December 31, 2017 2018 $ 305 2019 148 2020 71 2021 26 2022 22 Thereafter 181 Total $ 753 Guarantees and indemnifications: Schwab has clients that sell (i.e., write) listed option contracts that are cleared by the Options Clearing Corporation – a clearing house that establishes margin requirements on these transactions. We partially satisfy the margin requirements by arranging unsecured standby LOCs, in favor of the Options Clearing Corporation, which are issued by several banks. At December 31, 2017 , the aggregate face amount of these LOCs totaled $225 million . There were no funds drawn under any of these LOCs at December 31, 2017 . In connection with its securities lending activities, Schwab is required to provide collateral to certain brokerage clients. The Company satisfies the collateral requirements by providing cash as collateral. Schwab also provides guarantees to securities clearing houses and exchanges under standard membership agreements, which require members to guarantee the performance of other members. Under the agreements, if another member becomes unable to satisfy its obligations to the clearing houses and exchanges, other members would be required to meet shortfalls. The Company’s liability under these arrangements is not quantifiable and may exceed the cash and securities it has posted as collateral. The potential requirement for the Company to make payments under these arrangements is remote. Accordingly, no liability has been recognized for these guarantees. Legal contingencies: Schwab is subject to claims and lawsuits in the ordinary course of business, including arbitrations, class actions and other litigation, some of which include claims for substantial or unspecified damages. The Company is also the subject of inquiries, investigations, and proceedings by regulatory and other governmental agencies. Predicting the outcome of a litigation or regulatory matter is inherently difficult, requiring significant judgment and evaluation of various factors, including the procedural status of the matter and any recent developments; prior experience and the experience of others in similar cases; available defenses, including potential opportunities to dispose of a case on the merits or procedural grounds before trial (e.g., motions to dismiss or for summary judgment); the progress of fact discovery; the opinions of counsel and experts regarding potential damages; potential opportunities for settlement and the status of any settlement discussions; and potential insurance coverage and indemnification. It may not be reasonably possible to estimate a range of potential liability until the matter is closer to resolution – pending, for example, further proceedings, the outcome of key motions or appeals, or discussions among the parties. Numerous issues may have to be developed, such as discovery of important factual matters and determination of threshold legal issues, which may include novel or unsettled questions of law. Reserves are established or adjusted or further disclosure and estimates of potential loss are provided as the matter progresses and more information becomes available. Schwab believes it has strong defenses in all significant matters currently pending and is contesting liability and any damages claimed. Nevertheless, some of these matters may result in adverse judgments or awards, including penalties, injunctions or other relief, and the Company may also determine to settle a matter because of the uncertainty and risks of litigation. Described below are certain matters in which there is a reasonable possibility that a material loss could be incurred or where the matter may otherwise be of significant interest to stockholders. Unless otherwise noted, the Company is unable to provide a reasonable estimate of any potential liability given the stage of proceedings in the matter. With respect to all other pending matters, based on current information and consultation with counsel, it does not appear reasonably possible that the outcome of any such matter would be material to the financial condition, operating results, or cash flows of the Company. Total Bond Market Fund Litigation : On August 28, 2008, a class action lawsuit was filed in the U.S. District Court for the Northern District of California on behalf of investors in the Schwab Total Bond Market Fund™. The lawsuit, which alleged violations of state law and federal securities law in connection with the fund’s investment policy, named CSIM, Schwab Investments (registrant and issuer of the fund’s shares), and certain current and former fund trustees as defendants. Allegations include that the fund improperly deviated from its stated investment objectives by investing in collateralized mortgage obligations (CMOs) and investing more than 25% of fund assets in CMOs and mortgage-backed securities without obtaining a fundholder vote. Plaintiff seeks unspecified compensatory and rescission damages, unspecified equitable and injunctive relief, costs, and attorneys’ fees on behalf of a putative class of investors who held shares as of August 31, 2007, and a putative class of investors who purchased the shares between September 1, 2017 and February 27, 2009. Plaintiff’s federal securities law claim and certain of plaintiff’s state law claims were dismissed. On August 8, 2011, the court dismissed plaintiff’s remaining claims with prejudice. Plaintiff appealed to the Ninth Circuit, which issued a ruling on March 9, 2015 reversing the district court’s dismissal of the case and remanding the case for further proceedings. Plaintiff filed a fourth amended complaint on June 25, 2015, and in decisions issued October 6, 2015 and February 23, 2016, the court dismissed all claims with prejudice. Plaintiff has appealed to the Ninth Circuit, where the case is again pending. Crago Order Routing Litigation : On July 13, 2016, a securities class action lawsuit was filed in the U.S. District Court for the Northern District of California on behalf of a putative class of customers executing equity orders through CS&Co. The lawsuit names CS&Co and CSC as defendants and alleges that an agreement under which CS&Co routed orders to UBS Securities LLC between July 13, 2011 and December 31, 2014 violated CS&Co’s duty to seek best execution. Plaintiffs seek unspecified damages, interest, injunctive and equitable relief, and attorneys’ fees and costs. After a first amended complaint was dismissed with leave to amend, plaintiffs filed a second amended complaint on August 14, 2017. Defendants again moved to dismiss, and in a decision issued December 5, 2017, the court denied the motion. Defendants have answered the complaint to deny all allegations, and intend to vigorously contest the lawsuit. |
Financial Instruments Subject t
Financial Instruments Subject to Off-Balance Sheet Credit Risk | 12 Months Ended |
Dec. 31, 2017 | |
Offsetting [Abstract] | |
Financial Instruments Subject to Off-Balance Sheet Credit Risk | Financial Instruments Subject to Off-Balance Sheet Credit Risk Off-Balance Sheet Credit Risk Resale agreements: Schwab enters into collateralized resale agreements principally with other broker-dealers, which could result in losses in the event the counterparty fails to purchase the securities held as collateral for the cash advanced and the fair value of the securities declines. To mitigate this risk, Schwab requires that the counterparty deliver securities to a custodian, to be held as collateral, with a fair value at or in excess of the resale price. We also set standards for the credit quality of the counterparty, monitor the fair value of the underlying securities as compared to the related receivable, including accrued interest, and require additional collateral where deemed appropriate. Schwab utilizes the collateral provided under these resale agreements to meet obligations under broker-dealer client protection rules, which place limitations on its ability to access such segregated securities. For Schwab to repledge or sell this collateral, it would be required to deposit cash and/or securities of an equal amount into its segregated reserve bank accounts in order to meet its segregated cash and investment requirement. Schwab’s resale agreements are not subject to master netting arrangements. Securities lending: Schwab loans brokerage client securities temporarily to other brokers and clearing houses in connection with its securities lending activities and receives cash as collateral for the securities loaned. Increases in security prices may cause the fair value of the securities loaned to exceed the amount of cash received as collateral. In the event the counterparty to these transactions does not return the loaned securities or provide additional cash collateral, we may be exposed to the risk of acquiring the securities at prevailing market prices in order to satisfy our client obligations. Schwab mitigates this risk by requiring credit approvals for counterparties, monitoring the fair value of securities loaned, and requiring additional cash as collateral when necessary. We also borrow securities from other broker-dealers to fulfill short sales by brokerage clients and deliver cash to the lender in exchange for the securities. The fair value of these borrowed securities was $215 million and $213 million at December 31, 2017 and 2016 , respectively. All of our securities lending transactions are through a program with a clearing organization, which guarantees the return of cash to us and is subject to enforceable master netting arrangements with other broker-dealers; however, we do not net securities lending transactions. Therefore, the securities loaned and securities borrowed are presented gross in the consolidated balance sheets. The following table presents information about our resale agreements and securities lending activity depicting the potential effect of rights of setoff between these recognized assets and recognized liabilities at December 31, 2017 and 2016 . Gross Amounts Not Offset in the Gross Gross Amounts Offset in the Consolidated Net Amounts Presented in the Consolidated Counterparty Collateral Net December 31, 2017 Assets: Resale agreements (1) $ 6,596 $ — $ 6,596 $ — $ (6,596 ) (2) $ — Securities borrowed (3) 222 — 222 (199 ) (22 ) 1 Total $ 6,818 $ — $ 6,818 $ (199 ) $ (6,618 ) $ 1 Liabilities: Securities loaned (4,5) $ 966 $ — $ 966 $ (199 ) $ (670 ) $ 97 Total $ 966 $ — $ 966 $ (199 ) $ (670 ) $ 97 December 31, 2016 Assets: Resale agreements (1) $ 9,547 $ — $ 9,547 $ — $ (9,547 ) (2) $ — Securities borrowed (3) 393 — 393 (200 ) (189 ) 4 Total $ 9,940 $ — $ 9,940 $ (200 ) $ (9,736 ) $ 4 Liabilities: Securities loaned (4,5) $ 1,996 $ — $ 1,996 $ (200 ) $ (1,660 ) $ 136 Total $ 1,996 $ — $ 1,996 $ (200 ) $ (1,660 ) $ 136 (1) Included in cash and investments segregated and on deposit for regulatory purposes in the consolidated balance sheets. (2) Actual collateral was greater than or equal to 102% of the related assets. At December 31, 2017 and 2016 , the fair value of collateral received in connection with resale agreements that are available to be repledged or sold was $6.7 billion and $9.8 billion , respectively. (3) Included in receivables from brokers, dealers, and clearing organizations in the consolidated balance sheets. (4) Included in payables to brokers, dealers, and clearing organizations in the consolidated balance sheets. The cash collateral received from counterparties under securities lending transactions was equal to or greater than the market value of the securities loaned at December 31, 2017 and 2016 . (5) Securities loaned are predominantly comprised of equity securities held in client brokerage accounts with overnight and continuous remaining contractual maturities. Client trade settlement: Schwab is obligated to settle transactions with brokers and other financial institutions even if our clients fail to meet their obligations to us. Clients are required to complete their transactions on settlement date, generally two business days after the trade date. If clients do not fulfill their contractual obligations, we may incur losses. We have established procedures to reduce this risk by requiring deposits from clients in excess of amounts prescribed by regulatory requirements for certain types of trades, and therefore the potential to make payments under these client transactions is remote. Accordingly, no liability has been recognized for these transactions. Margin lending: Clients with margin loans have agreed to allow Schwab to pledge collateralized securities in their brokerage accounts in accordance with federal regulations. The following table summarizes the fair value of client securities that were available, under such regulations, that could have been used as collateral, and the amounts that we had pledged: December 31, 2017 2016 Fair value of client securities available to be pledged $ 25,905 $ 21,516 Fair value of client securities pledged for: Fulfillment of requirements with the Options Clearing Corporation (1) 2,280 1,519 Fulfillment of client short sales 2,011 2,048 Securities lending to other broker-dealers 784 1,626 Total collateral pledged $ 5,075 $ 5,193 Note: Excludes amounts available and pledged for securities lending from fully-paid client securities. The fair value of fully-paid client securities available and pledged was $78 million as of December 31, 2017 and $58 million as of December 31, 2016 . (1) Client securities pledged to fulfill client margin requirements for open option contracts established with the Options Clearing Corporation. |
Fair Values of Assets and Liabi
Fair Values of Assets and Liabilities | 12 Months Ended |
Dec. 31, 2017 | |
Fair Value Disclosures [Abstract] | |
Fair Values of Assets and Liabilities | Fair Values of Assets and Liabilities For a description of the fair value hierarchy and Schwab’s fair value methodologies, including the use of independent third-party pricing services, see Note 2. We did not transfer any assets or liabilities between Level 1, Level 2, or Level 3 during 2017 or 2016 . In addition, the Company did not adjust prices received from the primary independent third-party pricing service at December 31, 2017 or 2016 . Assets and Liabilities Measured at Fair Value on a Recurring Basis The following tables present the fair value hierarchy for assets measured at fair value on a recurring basis. Liabilities recorded at fair value were not material, and therefore are not included in the following tables: December 31, 2017 Quoted Prices Significant Significant Unobservable Inputs Balance at Cash equivalents: Money market funds $ 2,727 $ — $ — $ 2,727 Total cash equivalents 2,727 — — 2,727 Investments segregated and on deposit for regulatory purposes: Certificates of deposit — 2,198 — 2,198 U.S. Government securities — 3,658 — 3,658 Total investments segregated and on deposit for regulatory purposes — 5,856 — 5,856 Other securities owned: Equity and bond mutual funds 318 — — 318 Schwab Funds ® money market funds 135 — — 135 State and municipal debt obligations — 52 — 52 Equity, U.S. Government and corporate debt, and other securities 2 32 — 34 Total other securities owned 455 84 — 539 Available for sale securities: U.S. agency mortgage-backed securities — 20,929 — 20,929 U.S. Treasury securities — 9,500 — 9,500 Asset-backed securities — 9,047 — 9,047 Corporate debt securities — 6,169 — 6,169 Certificates of deposit — 2,041 — 2,041 U.S. agency notes — 1,906 — 1,906 Commercial paper — 313 — 313 Foreign government agency securities — 50 — 50 Non-agency commercial mortgage-backed securities — 40 — 40 Total available for sale securities — 49,995 — 49,995 Total $ 3,182 $ 55,935 $ — $ 59,117 December 31, 2016 Quoted Prices Significant Significant Unobservable Inputs Balance at Cash equivalents: Money market funds $ 1,514 $ — $ — $ 1,514 Total cash equivalents 1,514 — — 1,514 Investments segregated and on deposit for regulatory purposes: Certificates of deposit — 2,525 — 2,525 U.S. Government securities — 6,111 — 6,111 Total investments segregated and on deposit for regulatory purposes — 8,636 — 8,636 Other securities owned: Equity and bond mutual funds 272 — — 272 Schwab Funds ® money market funds 108 — — 108 State and municipal debt obligations — 41 — 41 Equity, U.S. Government and corporate debt, and other securities 2 26 — 28 Total other securities owned 382 67 — 449 Available for sale securities: U.S. agency mortgage-backed securities — 33,195 — 33,195 U.S. Treasury securities — 8,623 — 8,623 Asset-backed securities — 20,335 — 20,335 Corporate debt securities — 9,852 — 9,852 Certificates of deposit — 2,071 — 2,071 U.S. agency notes — 1,907 — 1,907 Commercial paper — 214 — 214 U.S. state and municipal securities — 1,123 — 1,123 Non-agency commercial mortgage-backed securities — 45 — 45 Total available for sale securities — 77,365 — 77,365 Total $ 1,896 $ 86,068 $ — $ 87,964 Fair Value of Other Financial Instruments Descriptions of the valuation methodologies and assumptions used to estimate the fair value of other financial instruments are also described in Note 2. There were no significant changes in these methodologies or assumptions during 2017 . The following tables present the fair value hierarchy for other financial instruments: December 31, 2017 Carrying Quoted Prices in Active Markets Significant Significant Unobservable Inputs Balance at Assets: Cash and cash equivalents $ 11,490 $ — $ 11,490 $ — $ 11,490 Cash and investments segregated and on deposit for regulatory purposes 9,277 — 9,277 — 9,277 Receivables from brokers, dealers, and clearing organizations 649 — 649 — 649 Receivables from brokerage clients — net 20,568 — 20,568 — 20,568 Held to maturity securities: U.S. agency mortgage-backed securities 101,197 — 100,453 — 100,453 Asset-backed securities 12,937 — 13,062 — 13,062 Corporate debt securities 4,078 — 4,086 — 4,086 U.S. state and municipal securities 1,247 — 1,304 — 1,304 Non-agency commercial mortgage-backed securities 994 — 999 — 999 U.S. Treasury securities 223 — 220 — 220 Certificates of deposit 200 — 200 — 200 Foreign government agency securities 50 — 49 — 49 Total held to maturity securities 120,926 — 120,373 — 120,373 Bank loans — net: First Mortgages 10,000 — 9,917 — 9,917 HELOCs 1,935 — 2,025 — 2,025 Pledged asset lines 4,369 — 4,369 — 4,369 Other 174 — 174 — 174 Total bank loans — net 16,478 — 16,485 — 16,485 Other assets 781 — 781 — 781 Total $ 180,169 $ — $ 179,623 $ — $ 179,623 Liabilities: Bank deposits $ 169,656 $ — $ 169,656 $ — $ 169,656 Payables to brokers, dealers, and clearing organizations 1,287 — 1,287 — 1,287 Payables to brokerage clients 31,243 — 31,243 — 31,243 Accrued expenses and other liabilities 1,463 — 1,463 — 1,463 Short-term borrowings 15,000 — 15,000 — 15,000 Long-term debt 4,753 — 4,811 — 4,811 Total $ 223,402 $ — $ 223,460 $ — $ 223,460 December 31, 2016 Carrying Quoted Prices in Active Markets Significant Significant Unobservable Inputs Balance at Assets: Cash and cash equivalents $ 9,314 $ — $ 9,314 $ — $ 9,314 Cash and investments segregated and on deposit for regulatory purposes 13,533 — 13,533 — 13,533 Receivables from brokers, dealers, and clearing organizations 728 — 728 — 728 Receivables from brokerage clients — net 17,151 — 17,151 — 17,151 Held to maturity securities: U.S. agency mortgage-backed securities 72,439 — 71,677 — 71,677 Asset-backed securities 941 — 941 — 941 Corporate debt securities 436 — 436 — 436 U.S. state and municipal securities 68 — 68 — 68 Non-agency commercial mortgage-backed securities 997 — 1,004 — 1,004 U.S. Treasury securities 223 — 219 — 219 Commercial paper 99 — 99 — 99 Total held to maturity securities 75,203 — 74,444 — 74,444 Bank loans — net: First Mortgages 9,117 — 9,064 — 9,064 HELOCs 2,342 — 2,458 — 2,458 Pledged asset lines 3,851 — 3,851 — 3,851 Other 93 — 94 — 94 Total bank loans — net 15,403 — 15,467 — 15,467 Other assets 328 — 328 — 328 Total $ 131,660 $ — $ 130,965 $ — $ 130,965 Liabilities: Bank deposits $ 163,454 $ — $ 163,454 $ — $ 163,454 Payables to brokers, dealers, and clearing organizations 2,407 — 2,407 — 2,407 Payables to brokerage clients 35,894 — 35,894 — 35,894 Accrued expenses and other liabilities 1,169 — 1,169 — 1,169 Long-term debt 2,876 — 2,941 — 2,941 Total $ 205,800 $ — $ 205,865 $ — $ 205,865 |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Dec. 31, 2017 | |
Stockholders' Equity Note [Abstract] | |
Stockholders' Equity | Stockholders’ Equity CSC did no t issue any shares of common stock during 2017 , 2016 , or 2015 . CSC was authorized to issue 9,940,000 shares of preferred stock, $0.01 par value, at December 31, 2017 and 2016 . The following is a summary of CSC’s non-cumulative perpetual preferred stock outstanding as of such dates: Dividend Rate in Effect at December 31, 2017 Date at Which Dividend Rate Becomes Floating Floating Annual Rate of Three-month LIBOR plus: Shares Issued and Outstanding (In thousands) at December 31, (1) Liquidation Preference Per Share Carrying Value at December 31, Earliest Redemption Date 2017 2016 2017 2016 Issue Date Fixed-rate: Series B (2) — 485 1,000 $ — $ 482 06/06/12 — — N/A N/A Series C 600 600 1,000 585 585 08/03/15 6.000 % 12/01/20 N/A N/A Series D 750 750 1,000 728 728 03/07/16 5.950 % 06/01/21 N/A N/A Fixed-to-floating-rate: Series A 400 400 1,000 397 397 01/26/12 7.000 % 02/01/22 02/01/22 4.820 % Series E 6 6 100,000 591 591 10/31/16 4.625 % 03/01/22 03/01/22 3.315 % Series F 5 — 100,000 492 — 10/31/17 5.000 % 12/01/27 12/01/27 2.575 % Total Preferred Stock 1,761 2,241 $ 2,793 $ 2,783 (1) Represented by depositary shares, except for Series A (2) On December 1, 2017, CSC redeemed all of the outstanding shares of its 6.00% Non-Cumulative Preferred Stock, Series B at their stated redemption value. Dividends on CSC’s preferred stock are not cumulative and will only be paid on a series of preferred stock for a dividend period if declared by CSC’s Board of Directors. Under the terms of each series of preferred stock, CSC’s ability to pay dividends on, make distributions with respect to, or to repurchase, redeem or acquire its common stock or any preferred stock ranking on parity with or junior to the series of preferred stock, is subject to restrictions in the event that CSC does not declare and either pay or set aside a sum sufficient for payment of dividends on the series of preferred stock for the immediately preceding dividend period. Dividends on fixed-rate preferred stock are payable quarterly. Dividends on fixed-to-floating-rate preferred stock are payable semiannually while at a fixed rate, and will become payable quarterly after converting to a floating rate. Redemption Rights Each series of CSC’s stock may be redeemed at CSC’s option on any dividend payment date on or after the earliest redemption date for that series. All outstanding preferred stock series may also be redeemed following a “capital treatment event,” as described in the terms of each series. Any redemption of CSC’s preferred stock is subject to approval from the Federal Reserve. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income | 12 Months Ended |
Dec. 31, 2017 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Income | Accumulated Other Comprehensive Income AOCI represents cumulative gains and losses that are not reflected in earnings. The components of other comprehensive income (loss) are as follows: Year Ended December 31, 2017 2016 2015 Before Tax Net of Before Tax Net of Before Tax Net of Change in net unrealized gain (loss) on available for sale securities: Net unrealized gain (loss) $ 13 $ (7 ) $ 6 $ (44 ) $ 16 $ (28 ) $ (477 ) $ 178 $ (299 ) Reclassification of net unrealized loss on securities transferred to held to maturity (1) 227 (85 ) 142 — — — — — — Other reclassifications included in other revenue (12 ) 4 (8 ) (4 ) 2 (2 ) — — — Change in net unrealized gain (loss) on held to maturity securities: Reclassification of net unrealized loss on securities transferred from available for sale (1) (227 ) 85 (142 ) — — — — — — Amortization of amounts previously recorded upon transfer from available for sale 31 (11 ) 20 — — — — — — Other (11 ) 4 (7 ) 1 — 1 — — — Other comprehensive income (loss) $ 21 $ (10 ) $ 11 $ (47 ) $ 18 $ (29 ) $ (477 ) $ 178 $ (299 ) (1) See Note 5 for discussion of the transfer of securities from the AFS category to the HTM category during the first quarter of 2017. AOCI balances are as follows: Total Balance at December 31, 2014 $ 165 Net unrealized gain (loss) on available for sale securities (299 ) Balance at December 31, 2015 $ (134 ) Net unrealized gain (loss) on available for sale securities (30 ) Other $ 1 Balance at December 31, 2016 $ (163 ) Available for sale securities: Net unrealized gain (loss) 6 Reclassification of net unrealized loss on securities transferred to held to maturity 142 Other reclassifications included in other revenue (8 ) Held to maturity securities: Reclassification of net unrealized loss on securities transferred from available for sale (142 ) Amortization of amounts previously recorded upon transfer to held to maturity from available for sale 20 Other (7 ) Balance at December 31, 2017 $ (152 ) |
Employee Incentive, Retirement,
Employee Incentive, Retirement, Deferred Compensation, and Career Achievement Plans | 12 Months Ended |
Dec. 31, 2017 | |
Retirement Benefits [Abstract] | |
Employee Incentive, Retirement, Deferred Compensation, and Career Achievement Plans | Employee Incentive, Retirement, Deferred Compensation, and Career Achievement Plans Schwab’s share-based incentive plans provide for granting options and restricted stock units to employees, officers, and directors. In addition, we offer retirement and employee stock purchase plans to eligible employees and sponsor deferred compensation plans for eligible officers and non-employee directors. A summary of share-based compensation expense and related income tax benefit is as follows: Year Ended December 31, 2017 2016 2015 Stock option expense $ 50 $ 45 $ 46 Restricted stock unit expense 94 89 83 Employee stock purchase plan expense 9 7 6 Total share-based compensation expense $ 153 $ 141 $ 135 Income tax benefit on share-based compensation expense (1) $ (57 ) $ (53 ) $ (51 ) (1) Excludes the 2017 income tax benefit of $87 million due to the adoption of ASU 2016-09, as disclosed in Note 2. The Company issues shares for stock options and restricted stock units from treasury stock. At December 31, 2017 , the Company was authorized to grant up to 44 million common shares under its existing stock incentive plans. Additionally, at December 31, 2017 , the Company had 37 million shares reserved for future issuance under its employee stock purchase plan. As of December 31, 2017 , there was $268 million of total unrecognized compensation cost related to outstanding stock options and restricted stock units, which is expected to be recognized through 2021 with a remaining weighted-average service period of 1.9 years for stock options, 2.4 years for restricted stock units, and 0.3 years for performance stock units. Stock Option Plan Options are granted for the purchase of shares of common stock at an exercise price not less than market value on the date of grant, and expire ten years from the date of grant. Options generally vest annually over a one - to four -year period from the date of grant. Stock option activity is summarized below: Number Weighted- Average Exercise Price Weighted- Average Remaining Contractual Aggregate Intrinsic Outstanding at December 31, 2016 37 $ 22.12 6.50 $ 649 Granted 4 43.71 Exercised (9 ) 18.20 Forfeited — 31.02 Expired — 24.82 Outstanding at December 31, 2017 32 $ 26.16 6.38 $ 814 Vested and expected to vest at December 31, 2017 31 $ 26.02 6.35 $ 811 Vested and exercisable at December 31, 2017 20 $ 20.82 5.02 $ 612 The aggregate intrinsic value in the table above represents the difference between CSC’s closing stock price and the exercise price of each in-the-money option on the last trading day of the period presented. Information on stock options granted and exercised is presented below: Year Ended December 31, 2017 2016 2015 Weighted-average fair value of options granted per share $ 13.04 $ 8.73 $ 8.56 Cash received from options exercised 171 144 90 Tax benefit realized on options exercised 70 38 22 Aggregate intrinsic value of options exercised 241 149 90 We use an option pricing model to estimate the fair value of options granted. The model takes into account the contractual term of the stock option, expected volatility, dividend yield, and risk-free interest rate. Expected volatility is based on the implied volatility of publicly-traded options on CSC’s stock. Dividend yield is based on the average historical CSC dividend yield. The risk-free interest rate is based on the yield of a U.S. Treasury zero-coupon issue with a remaining term similar to the contractual term of the option. We use historical option exercise data, which includes employee termination data, to estimate the probability of future option exercises. The Black-Scholes model is used to solve for the expected life of options. The assumptions used to value the options granted during the years presented and their expected lives were as follows: Year Ended December 31, 2017 2016 2015 Weighted-average expected dividend yield 1.06 % 1.22 % 1.22 % Weighted-average expected volatility 34 % 30 % 28 % Weighted-average risk-free interest rate 2.1 % 1.8 % 2.2 % Expected life (in years) 4.1 - 5.3 4.7 - 7.3 4.7 - 7.5 Restricted Stock Units Restricted stock units are awards that entitle the holder to receive shares of CSC’s common stock following a vesting period. Restricted stock units are restricted from transfer or sale and generally vest annually over a three - to five -year period, while performance-based restricted stock units also require the Company achieve certain financial or other measures prior to vesting. The fair value of restricted stock units is based on the market price of the Company’s stock on the date of grant. The grant date fair value is amortized to compensation expense on a straight-line basis over the requisite service period. The fair value of the restricted stock units that vested during each of the years 2017 , 2016 , and 2015 was $127 million , $105 million , and $126 million , respectively. The Company’s restricted stock units activity is summarized below: Number Weighted- Average Grant Date Fair Value Outstanding at December 31, 2016 8 $ 29.41 Granted 2 44.23 Vested (3 ) 28.15 Forfeited — 30.86 Outstanding at December 31, 2017 7 $ 35.16 Retirement Plan Employees can participate in the Schwab’s qualified retirement plan, the SchwabPlan ® Retirement Savings and Investment Plan. The Company may match certain employee contributions or make additional contributions to this plan at its discretion. The Company’s total expense was $92 million , $83 million , and $78 million in 2017 , 2016 , and 2015 , respectively. Deferred Compensation Plans Schwab’s deferred compensation plan for officers permits participants to defer the receipt of certain cash compensation. The deferred compensation plan for non-employee directors permits participants to defer receipt of all or a portion of their director fees and to receive either a grant of stock options, or upon ceasing to serve as a director, the number of shares of CSC’s common stock that would have resulted from investing the deferred fee amount into CSC’s common stock. The deferred compensation liability was $160 million and $135 million at December 31, 2017 and 2016 , respectively. FC Career Achievement Plan The FC career achievement plan was implemented in January 2014 and is a noncontributory, unfunded, nonqualified plan for eligible FCs. An FC is eligible for earned cash payments after retirement contingent upon meeting certain performance levels, tenure, age and client transitioning requirements. Allocations to the plan are completed annually by the Company and are subject to general creditors of the Company. Based on the performance level achieved, an FC will receive an award calculated as a percentage of eligible compensation. Full vesting occurs when an FC reaches 60 years of age and has at least ten years of service with the Company. The Company is using the Society of Actuaries MP-2017 mortality improvement scale for its mortality assumptions. The following table presents the changes in projected benefit obligation: December 31, 2017 2016 Projected benefit obligation at beginning of year $ 26 $ 17 Benefit cost 9 7 Actuarial (gain)/loss 9 2 Projected benefit obligation at end of year (1) $ 44 $ 26 (1) This amount is recognized as a liability on the consolidated balance sheets and also depicts the accumulated benefit obligation. The following table presents the net benefit cost and assumptions used to determine the net benefit cost: December 31, 2017 2016 2015 Service cost $ 8 $ 6 $ 8 Interest cost 1 1 — Net benefit cost $ 9 $ 7 $ 8 Assumptions used to determine net benefit cost: Discount rate 3.71 % 4.62 % 4.19 % Rate of compensation increase 3.00 % 3.00 % 3.00 % Investment crediting rate for notional account balances 6.50 % 6.50 % 6.50 % The following tables present the change in AOCI attributable to the components of the net cost and the change in benefit obligation and the amounts recognized in AOCI: December 31, 2017 2016 Change in AOCI: Beginning balance $ 1 $ — Actuarial gain/(loss) (11 ) 1 Ending balance $ (10 ) $ 1 December 31, 2017 2016 Components in AOCI: Net gain/(loss) $ (10 ) $ 1 Amount recognized in AOCI $ (10 ) $ 1 Tax effect $ 4 $ — Net amount recognized in AOCI $ (6 ) $ 1 |
Taxes on Income
Taxes on Income | 12 Months Ended |
Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Taxes on Income | Taxes on Income On December 22, 2017, P.L. 115-97, known as the Tax Cuts and Jobs Act (the Tax Act), was signed into law. Among other things, the Tax Act lowers the federal corporate income tax rate from 35% to 21%, effective for tax years including or commencing January 1, 2018. The SEC staff issued Staff Accounting Bulletin (SAB) 118, which provides guidance on accounting for the effects of the Tax Act. SAB 118 provides a measurement period that should not extend beyond one year from the enactment date for companies to complete the accounting under ASC 740 Income Taxes. In accordance with SAB 118, a company must reflect the income tax effects of those aspects of the Tax Act for which the accounting under ASC 740 is complete. To the extent a company’s accounting for certain income tax effects of the Tax Act is incomplete but it is able to determine a reasonable estimate, it must record a provisional estimate in the financial statements. If a company cannot determine a provisional estimate to be included in the financial statements, it should continue to apply ASC 740 on the basis of the provisions of the tax laws that were in effect immediately before the enactment of the Tax Act. In connection with our initial analysis of the impact of the Tax Act, Schwab recognized a $46 million one-time non-cash charge to taxes on income in the fourth quarter of 2017 associated with the remeasurement of net deferred tax assets and other tax adjustments related to the Tax Act. While we were able to make a reasonable estimate of the impact of the reduction in the corporate tax rate, our accounting for various elements of the Tax Act may be affected by other related analysis including, but not limited to, bonus depreciation that will allow for immediate expensing of qualified property and the state tax effect of adjustments made to federal temporary differences. As such, the impact of the Tax Act is an estimate pending further information and the analysis noted. The components of taxes on income are as follows: Year Ended December 31, 2017 2016 2015 Current: Federal $ 1,132 $ 980 $ 740 State 106 109 99 Total current 1,238 1,089 839 Deferred: Federal 58 13 (6 ) State — 2 (1 ) Total deferred 58 15 (7 ) Taxes on income $ 1,296 $ 1,104 $ 832 The temporary differences that created deferred tax assets and liabilities are detailed below: December 31, 2017 2016 Deferred tax assets: Employee compensation, severance, and benefits $ 133 $ 216 Net unrealized loss on available for sale securities 57 97 Reserves and allowances 15 25 Facilities lease commitments 14 25 State and local taxes 12 17 Net operating loss carryforwards 5 5 Other 3 — Total deferred tax assets 239 385 Valuation allowance (2 ) (3 ) Deferred tax assets — net of valuation allowance 237 382 Deferred tax liabilities: Capitalized internal-use software development costs (89 ) (118 ) Depreciation and amortization (72 ) (114 ) Other — (7 ) Total deferred tax liabilities (161 ) (239 ) Deferred tax asset — net (1) $ 76 $ 143 (1) Amounts are included in other assets on the consolidated balance sheets at both December 31, 2017 and 2016 . A reconciliation of the federal statutory income tax rate to the effective income tax rate is as follows: Year Ended December 31, 2017 2016 2015 Federal statutory income tax rate 35.0 % 35.0 % 35.0 % State income taxes, net of federal tax benefit 2.2 2.4 2.6 Equity compensation benefit (2.4 ) — — Other (1) 0.7 (0.5 ) (1.1 ) Effective income tax rate 35.5 % 36.9 % 36.5 % (1) Includes the impact of one-time charge to taxes on income associated with the Tax Act. A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows: December 31, 2017 2016 Balance at beginning of year $ 93 $ 48 Additions for tax positions related to the current year 22 16 Additions for tax positions related to prior years 15 32 Reductions for tax positions related to prior years (2 ) (2 ) Reductions due to lapse of statute of limitations — — Reductions for settlements with tax authorities (17 ) (1 ) Balance at end of year $ 111 $ 93 Unrecognized tax benefits totaled $111 million and $93 million as of December 31, 2017 and 2016 , respectively, $104 million and $85 million of which if recognized would affect the annual effective tax rate. Interest was accrued related to unrecognized tax benefits in tax expense and penalties in other expense. Approximately $5 million and $8 million for the payment of interest and penalties was accrued at December 31, 2017 and 2016 , respectively. The Company and its subsidiaries are subject to routine examinations by the respective federal, state and applicable local jurisdictions’ taxing authorities. Federal returns for 2011 through 2016 remain subject to examination. The years open to examination by state and local governments vary by jurisdiction. |
Earnings Per Common Share
Earnings Per Common Share | 12 Months Ended |
Dec. 31, 2017 | |
Earnings Per Share [Abstract] | |
Earnings Per Common Share | Earnings Per Common Share EPS is computed using the two-class method. Preferred stock dividends, and undistributed earnings and dividends allocated to participating securities are subtracted from net income in determining net income available to common stockholders. Basic EPS is computed by dividing net income available to common stockholders by the weighted-average number of common shares outstanding during the period. The computation of diluted EPS is similar to the computation of basic EPS except that the denominator is increased to include the number of additional common shares that would have been outstanding if dilutive potential common shares had been issued. Dilutive potential common shares include, if dilutive, the effect of outstanding stock options and non-vested restricted stock units. EPS under the basic and diluted computations is as follows: Year Ended December 31, 2017 2016 2015 Net income $ 2,354 $ 1,889 $ 1,447 Preferred stock dividends and other (1) (174 ) (143 ) (83 ) Net income available to common stockholders $ 2,180 $ 1,746 $ 1,364 Weighted-average common shares outstanding — basic 1,339 1,324 1,315 Common stock equivalent shares related to stock incentive plans 14 10 12 Weighted-average common shares outstanding — diluted (2) 1,353 1,334 1,327 Basic EPS $ 1.63 $ 1.32 $ 1.04 Diluted EPS $ 1.61 $ 1.31 $ 1.03 (1) Includes preferred stock dividends and undistributed earnings and dividends allocated to non-vested restricted stock units. (2) Antidilutive stock options and restricted stock units excluded from the calculation of diluted EPS totaled 15 million , 26 million , and 23 million shares in 2017 , 2016 , and 2015 , respectively. |
Regulatory Requirements
Regulatory Requirements | 12 Months Ended |
Dec. 31, 2017 | |
Banking and Thrift [Abstract] | |
Regulatory Requirements | Regulatory Requirements CSC is a savings and loan holding company and Schwab Bank, CSC’s primary depository institution subsidiary, is a federal savings bank. CSC is subject to examination, supervision, and regulation by the Federal Reserve. Schwab Bank is subject to examination, supervision, and regulation by the OCC, as its primary regulator, the FDIC as its deposit insurer, and the CFPB. CSC is required to serve as a source of strength for Schwab Bank. Schwab Bank is subject to various requirements and restrictions under federal and state laws, including regulatory capital requirements and requirements that restrict and govern the terms of affiliate transactions, such as extensions of credit to, or asset purchases from CSC or its other subsidiaries by Schwab Bank. In addition, Schwab Bank is required to provide notice to and may be required to obtain approval of the OCC and the Federal Reserve to declare dividends to CSC. The federal banking agencies have broad powers to enforce these regulations, including the power to terminate deposit insurance, impose substantial fines and other civil and criminal penalties, and appoint a conservator or receiver. Under the Federal Deposit Insurance Act, Schwab Bank could be subject to restrictive actions if it were to fall within one of the lowest three of five capital categories. CSC and Schwab Bank are required to maintain minimum capital levels as specified in federal banking regulations. Failure to meet the minimum levels could result in certain mandatory, and possibly additional discretionary actions by the regulators that, if undertaken, could have a direct material effect on CSC and Schwab Bank. At December 31, 2017 , both CSC and Schwab Bank met all of their respective capital requirements. The regulatory capital and ratios for CSC (consolidated) and Schwab Bank are as follows: Actual Minimum to be Minimum Capital December 31, 2017 Amount Ratio Amount Ratio Amount Ratio CSC Common Equity Tier 1 Risk-Based Capital $ 14,630 19.3 % N/A $ 3,414 4.5 % Tier 1 Risk-Based Capital 17,423 23.0 % N/A 4,552 6.0 % Total Risk-Based Capital 17,452 23.0 % N/A 6,069 8.0 % Tier 1 Leverage 17,423 7.6 % N/A 9,218 4.0 % Schwab Bank Common Equity Tier 1 Risk-Based Capital $ 13,355 20.1 % $ 4,324 6.5 % $ 2,993 4.5 % Tier 1 Risk-Based Capital 13,355 20.1 % 5,321 8.0 % 3,991 6.0 % Total Risk-Based Capital 13,382 20.1 % 6,652 10.0 % 5,321 8.0 % Tier 1 Leverage 13,355 7.1 % 9,462 5.0 % 7,569 4.0 % December 31, 2016 CSC Common Equity Tier 1 Risk-Based Capital $ 12,574 18.4 % N/A $ 3,068 4.5 % Tier 1 Risk-Based Capital 15,357 22.5 % N/A 4,091 6.0 % Total Risk-Based Capital 15,384 22.6 % N/A 5,454 8.0 % Tier 1 Leverage 15,357 7.2 % N/A 8,516 4.0 % Schwab Bank Common Equity Tier 1 Risk-Based Capital $ 11,878 19.8 % $ 3,894 6.5 % $ 2,696 4.5 % Tier 1 Risk-Based Capital 11,878 19.8 % 4,793 8.0 % 3,595 6.0 % Total Risk-Based Capital 11,904 19.9 % 5,992 10.0 % 4,793 8.0 % Tier 1 Leverage 11,878 7.0 % 8,456 5.0 % 6,765 4.0 % N/A Not Applicable. Based on its regulatory capital ratios at December 31, 2017 , Schwab Bank is considered well capitalized (the highest category) under its respective regulatory capital rules. There are no conditions or events since December 31, 2017 that management believes have changed Schwab Bank’s capital category. The Federal Reserve requires Schwab Bank to maintain reserve balances at the Federal Reserve based on its deposits that are considered to be transaction accounts. Schwab Bank’s average reserve requirements were $1.6 billion and $1.5 billion in 2017 and 2016 , respectively. Beginning on January 1, 2016, CSC and Schwab Bank became subject to a new capital conservation buffer requirement of 0.625% of risk-weighted assets, increasing each year by 0.625% until fully implemented at 2.5% of risk-weighted assets in January 2019. The capital conservation buffer is in addition to the minimum risk-based capital requirements described above. Failure to maintain the capital conservation buffer would limit an entity’s ability to make capital distributions and discretionary bonus payments to executive officers. At December 31, 2017 , both CSC’s and Schwab Bank’s capital levels exceeded the fully implemented capital conservation buffer requirement. CS&Co, a securities broker-dealer, is subject to the Uniform Net Capital Rule. CS&Co computes its net capital under the alternative method permitted by the Uniform Net Capital Rule. This method requires the maintenance of minimum net capital, as defined, of the greater of 2% of aggregate debit balances arising from client transactions or a minimum dollar requirement of $250,000 , which is based on the type of business conducted by the broker-dealer. Under the alternative method, a broker-dealer may not repay subordinated borrowings, pay cash dividends, or make any unsecured advances or loans if such payment would result in a net capital amount of less than 5% of aggregate debit balances or less than 120% of its minimum dollar requirement. During 2017, optionsXpress, Inc., a wholly-owned subsidiary of the Company, was renamed as Charles Schwab Futures (CS Futures). In October 2017, CS Futures transferred all of its retail brokerage customer accounts along with the related operations to CS&Co. CS Futures was de-registered as a securities broker-dealer with the SEC but remains a registered Futures Commission Merchant with the Commodity Futures Trading Commission. Net capital and net capital requirements for CS&Co are as follows: December 31, 2017 2016 Net capital $ 2,118 $ 1,846 Minimum net capital required 0.250 0.250 2% of aggregate debit balances 435 355 Net capital in excess of required net capital 1,683 1,491 In accordance with the SEC Customer Protection Rule, CS&Co had portions of its cash and investments segregated for the exclusive benefit of clients at December 31, 2017. The SEC Customer Protection Rule requires broker-dealers to segregate client fully paid securities and cash balances not collateralizing margin positions and not swept to money market funds or bank deposit accounts. Amounts included in cash and investments segregated and on deposit for regulatory purposes represent actual balances on deposit, whereas cash and investments required to be segregated and on deposit for regulatory purposes at December 31, 2017 for CS&Co totaled $15.3 billion . On January 3, 2018, CS&Co deposited a net amount of $704 million of cash into its segregated reserve accounts. Cash and investments required to be segregated and on deposit for regulatory purposes at December 31, 2016 for CS&Co totaled $22.5 billion . On January 4, 2017, a net amount of $1.6 billion of cash was deposited into the segregated reserve accounts. |
Segment Information
Segment Information | 12 Months Ended |
Dec. 31, 2017 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information Schwab’s two reportable segments are Investor Services and Advisor Services. Schwab structures the operating segments according to its clients and the services provided to those clients. The Investor Services segment provides retail brokerage and banking services to individual investors and retirement plan services, as well as other corporate brokerage services, to businesses and their employees. The Advisor Services segment provides custodial, trading, banking, and support services, as well as retirement business services, to independent RIAs, independent retirement advisors, and recordkeepers. Revenues and expenses are allocated to the Company’s two segments based on which segment services the client. The accounting policies of the segments are the same as those described in Note 2. For the computation of its segment information, Schwab utilizes an activity-based costing model to allocate traditional income statement line item expenses (e.g., compensation and benefits, depreciation and amortization, and professional services) to the business activities driving segment expenses (e.g., client service, opening new accounts, or business development) and a funds transfer pricing methodology to allocate certain revenues. Management evaluates the performance of its segments on a pre-tax basis. Segment assets and liabilities are not used for evaluating segment performance or in deciding how to allocate resources to segments. There are no revenues from transactions between the segments. Financial information for the segments is presented in the following table: Investor Services Advisor Services Total Year Ended December 31, 2017 2016 2015 2017 2016 2015 2017 2016 2015 Net Revenues: Net interest revenue $ 3,231 $ 2,591 $ 2,133 $ 1,051 $ 731 $ 392 $ 4,282 $ 3,322 $ 2,525 Asset management and administration fees 2,344 2,093 1,837 1,048 962 813 3,392 3,055 2,650 Trading revenue 408 524 556 246 301 310 654 825 866 Other 217 199 234 73 72 94 290 271 328 Provision for loan losses — 4 11 — 1 — — 5 11 Total net revenues 6,200 5,411 4,771 2,418 2,067 1,609 8,618 7,478 6,380 Expenses Excluding Interest 3,725 3,380 3,090 1,243 1,105 1,011 4,968 4,485 4,101 Income before taxes on income $ 2,475 $ 2,031 $ 1,681 $ 1,175 $ 962 $ 598 $ 3,650 $ 2,993 $ 2,279 Capital expenditures $ 265 $ 234 $ 195 $ 147 $ 119 $ 90 $ 412 $ 353 $ 285 Depreciation and amortization $ 203 $ 180 $ 171 $ 66 $ 54 $ 53 $ 269 $ 234 $ 224 |
The Charles Schwab Corporation
The Charles Schwab Corporation - Parent Company Only Financial Statements | 12 Months Ended |
Dec. 31, 2017 | |
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |
The Charles Schwab Corporation - Parent Company Only Financial Statements | The Charles Schwab Corporation – Parent Company Only Financial Statements Condensed Statements of Income Year Ended December 31, 2017 2016 2015 Interest revenue $ 33 $ 22 $ 12 Interest expense (114 ) (100 ) (86 ) Net interest expense (81 ) (78 ) (74 ) Other 3 1 4 Expenses excluding interest (32 ) (21 ) (27 ) Loss before income tax benefit and equity in net income of subsidiaries (110 ) (98 ) (97 ) Income tax benefit 27 34 41 Loss before equity in net income of subsidiaries (83 ) (64 ) (56 ) Equity in net income of subsidiaries: Equity in undistributed net income of subsidiaries 1,479 1,690 1,287 Dividends from bank subsidiary 625 — — Dividends from non-bank subsidiaries 333 263 216 Net Income 2,354 1,889 1,447 Preferred stock dividends and other (1) 174 143 83 Net Income Available to Common Stockholders $ 2,180 $ 1,746 $ 1,364 (1) Includes preferred stock dividends and undistributed earnings and dividends allocated to non-vested restricted stock units. Condensed Balance Sheets December 31, 2017 2016 Assets Cash and cash equivalents $ 2,825 $ 1,189 Receivables from subsidiaries 571 503 Available for sale securities 573 569 Held to maturity securities 223 223 Other securities owned — at fair value 76 75 Loans to non-bank subsidiaries 448 — Investment in non-bank subsidiaries 5,393 5,044 Investment in bank subsidiary 13,224 11,726 Other assets 160 124 Total assets $ 23,493 $ 19,453 Liabilities and Stockholders’ Equity Accrued expenses and other liabilities $ 276 $ 219 Payables to subsidiaries — 6 Long-term debt 4,692 2,807 Total liabilities 4,968 3,032 Stockholders’ equity 18,525 16,421 Total liabilities and stockholders’ equity $ 23,493 $ 19,453 Condensed Statements of Cash Flows Year Ended December 31, 2017 2016 2015 Cash Flows from Operating Activities Net income $ 2,354 $ 1,889 $ 1,447 Adjustments to reconcile net income to net cash provided by operating activities: Equity in undistributed earnings of subsidiaries (1,479 ) (1,690 ) (1,287 ) Other 5 (37 ) (31 ) Net change in: Other securities owned (1 ) (10 ) 9 Other assets (26 ) (27 ) (32 ) Accrued expenses and other liabilities 44 30 4 Net cash provided by (used for) operating activities 897 155 110 Cash Flows from Investing Activities Due from (to) subsidiaries — net (374 ) 95 93 Increase in investments in subsidiaries (342 ) (1,547 ) (611 ) Repayments (Advances) of subordinated loan to CS&Co — 465 (150 ) Purchases of available for sale securities (201 ) (2 ) (842 ) Proceeds from sales of available for sale securities 197 2 200 Principal payments on available for sale securities — — 75 Purchases of held to maturity securities — — (223 ) Other investing activities (6 ) (4 ) — Net cash provided by (used for) investing activities (726 ) (991 ) (1,458 ) Cash Flows from Financing Activities Issuance of long-term debt 2,129 — 1,346 Repayment of long-term debt (250 ) — (350 ) Net proceeds from preferred stock offerings 492 1,316 581 Redemption of preferred stock (485 ) — — Dividends paid (592 ) (486 ) (387 ) Proceeds from stock options exercised and other 171 144 90 Other financing activities — 44 32 Net cash provided by (used for) financing activities 1,465 1,018 1,312 Increase (Decrease) in Cash and Cash Equivalents 1,636 182 (36 ) Cash and Cash Equivalents at Beginning of Year 1,189 1,007 1,043 Cash and Cash Equivalents at End of Year $ 2,825 $ 1,189 $ 1,007 |
Quarterly Financial Information
Quarterly Financial Information (Unaudited) | 12 Months Ended |
Dec. 31, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Information (Unaudited) | Quarterly Financial Information (Unaudited) Fourth Third Second First Year Ended December 31, 2017: Total Net Revenues $ 2,242 $ 2,165 $ 2,130 $ 2,081 Total Expenses Excluding Interest $ 1,289 $ 1,220 $ 1,221 $ 1,238 Net Income $ 597 $ 618 $ 575 $ 564 Net Income Available to Common Stockholders $ 550 $ 575 $ 530 $ 525 Weighted-Average Common Shares Outstanding — Basic 1,343 1,339 1,338 1,336 Weighted-Average Common Shares Outstanding — Diluted 1,358 1,353 1,351 1,351 Earnings Per Common Share — Basic $ .41 $ .43 $ .40 $ .39 Earnings Per Common Share — Diluted $ .41 $ .42 $ .39 $ .39 Dividends Declared Per Common Share $ .08 $ .08 $ .08 $ .08 Range of Common Stock Price Per Share: High $ 52.52 $ 44.35 $ 44.10 $ 43.65 Low $ 42.20 $ 38.06 $ 37.16 $ 37.62 Range of Price/Earnings Ratio (1) : High 33 28 30 31 Low 26 24 25 27 Year Ended December 31, 2016: Total Net Revenues $ 1,972 $ 1,914 $ 1,828 $ 1,764 Total Expenses Excluding Interest $ 1,148 $ 1,120 $ 1,108 $ 1,109 Net Income $ 522 $ 503 $ 452 $ 412 Net Income Available to Common Stockholders $ 478 $ 470 $ 406 $ 392 Weighted-Average Common Shares Outstanding — Basic 1,329 1,324 1,322 1,321 Weighted-Average Common Shares Outstanding — Diluted 1,341 1,334 1,333 1,330 Earnings Per Common Share — Basic $ .36 $ .36 $ .31 $ .30 Earnings Per Common Share — Diluted $ .36 $ .35 $ .30 $ .29 Dividends Declared Per Common Share $ .07 $ .07 $ .07 $ .06 Range of Common Stock Price Per Share: High $ 40.58 $ 31.87 $ 31.07 $ 32.23 Low $ 30.66 $ 23.83 $ 24.02 $ 21.51 Range of Price/Earnings Ratio (1) : High 31 26 27 29 Low 24 20 21 20 (1) Price/earnings ratio is computed by dividing the high and low market prices by diluted earnings per common share for the preceding 12-month period ending on the last day of the quarter presented. |
Subsequent Event
Subsequent Event | 12 Months Ended |
Dec. 31, 2017 | |
Subsequent Events [Abstract] | |
Subsequent Event | Subsequent Event On February 8, 2018, CSC redeemed all of its outstanding 1.500% Senior Notes due March 10, 2018. The aggregate principal amount of the notes was $625 million. |
Summary of Significant Accoun33
Summary of Significant Accounting Policies (Policy) | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
Interest revenue | Interest revenue Interest revenue is recognized as earned on interest-earning assets such as cash and cash equivalents, cash and investments segregated, receivables from brokerage clients, investment securities, and bank loans. Interest revenue from these assets is based upon average or daily balances and the applicable interest rates. Interest revenue is also recognized from securities lending activities when earned based upon the securities and amounts lent and the applicable rates. |
Asset management and administration fees | Asset management and administration fees Asset management and administration fees are recognized as services are performed. Such fees are generally based on a percentage of the daily average asset balances, which are based on quoted market prices and other observable market data. The Company’s policy is to recognize revenue subject to refunds because management can estimate refunds based on Company-specific experience. Actual refunds were immaterial for all periods presented. |
Trading revenue | Trading revenue Schwab generates the majority of its trading revenue through commissions earned for executing trades for clients. Commission revenues are recognized as services are performed at the time of execution (i.e., on the trade date). |
Cash and cash equivalents | Cash and cash equivalents Schwab considers all highly liquid investments that mature in three months or less from the time of acquisition and that are not segregated and on deposit for regulatory purposes to be cash equivalents. Cash and cash equivalents include money market funds, deposits with banks, certificates of deposit, commercial paper, and U.S. Treasury securities. Cash and cash equivalents also include balances that Schwab Bank maintains at the Federal Reserve Bank (FRB). |
Cash and investments segregated and on deposit for regulatory purposes | Cash and investments segregated and on deposit for regulatory purposes Cash and investments segregated and on deposit for regulatory purposes include securities purchased under agreements to resell (resale agreements), which are collateralized by U.S. Government and agency securities. Resale agreements are accounted for as collateralized financing transactions that are recorded at their contractual amounts plus accrued interest. The Company obtains control of collateral with a market value equal to or in excess of the principal amount loaned and accrued interest under resale agreements. Collateral is valued daily by the Company, with additional collateral obtained to ensure full collateralization. Cash and investments segregated also include certificates of deposit and U.S. Government securities. Certificates of deposit and U.S. Government securities are recorded at fair value. Pursuant to the SEC’s Customer Protection Rule, cash balances not collateralizing margin positions and not swept to money market funds or bank deposit accounts, are segregated by Schwab for the exclusive benefit of clients. |
Receivables from brokerage clients | Receivables from brokerage clients Receivables from brokerage clients include margin loans to securities brokerage clients and other trading receivables from clients. Margin loans are collateralized by client securities and are carried at the amount receivable, net of an allowance for doubtful accounts. The Company monitors margin levels and requires clients to deposit additional collateral, or reduce margin positions to meet minimum collateral requirements if the fair value of the collateral changes. Receivables from brokerage clients that remain unsecured or partially secured for more than 30 days are fully reserved for in the allowance for doubtful accounts, except in the case of confirmed fraud, which is reserved immediately. Clients with margin loans have agreed to allow Schwab to pledge collateralized securities in accordance with federal regulations. The collateral is not reflected in the consolidated financial statements. |
Other securities owned | Other securities owned Other securities owned are recorded at fair value based on quoted market prices or other observable market data. Unrealized gains and losses are included in trading revenue. |
Investment Securities | Investment securities AFS securities are recorded at fair value and unrealized gains and losses are reported, net of taxes, in AOCI included in stockholders’ equity. HTM securities are recorded at amortized cost based on the Company’s positive intent and ability to hold these securities to maturity. Realized gains and losses from sales of AFS securities are determined on a specific identification basis and are included in other revenue. Management evaluates whether investment securities are OTTI on a quarterly basis. Debt securities with unrealized losses are considered OTTI if the Company intends to sell the security or if it is more likely than not that the Company will be required to sell such security before any anticipated recovery. If management determines that a security is OTTI under these circumstances, the impairment recognized in earnings is measured as the entire difference between amortized cost and fair value. A security is also OTTI if management does not expect to recover all of the amortized cost of the security. In this circumstance, the impairment recognized in earnings represents the estimated credit loss, and is measured by the difference between the present value of expected cash flows and the amortized cost of the security. Where appropriate, models are utilized to estimate the credit loss on a discounted cash flow basis using the security’s effective interest rate. The evaluation of whether we expect to recover the amortized cost of a security is inherently judgmental. The evaluation considers multiple factors including: the magnitude and duration of the unrealized loss; the financial condition of the issuer; the payment structure of the security; external credit ratings; our internal credit ratings; for asset-backed securities, the amount of credit support provided by the structure of the security to absorb credit losses on the underlying collateral; recent events specific to the issuer and the issuer’s industry; and whether all scheduled principal and interest payments have been received. |
Securities borrowed and securities loaned | Securities borrowed and securities loaned Securities borrowed require Schwab to deliver cash to the lender in exchange for securities and are included in receivables from brokers, dealers, and clearing organizations. For securities loaned, Schwab receives collateral in the form of cash in an amount equal to or greater than the market value of securities loaned. Securities loaned are included in payables to brokers, dealers, and clearing organizations. The market value of securities borrowed and loaned are monitored, with additional collateral obtained or refunded to ensure full collateralization. Fees received or paid are recorded in interest revenue or interest expense. |
Bank loans and related allowance for loan losses | Bank loans and related allowance for loan losses Bank loans are recorded at their contractual principal amounts and include unamortized direct origination costs or net purchase discounts or premiums. Direct origination costs and premiums and discounts are recognized in interest revenue using the effective interest method over the contractual life of the loan and are adjusted for actual prepayments. Additionally, loans are recorded net of an allowance for loan losses. The loan portfolio includes four loan types: First Mortgages, HELOCs, PALs and other loans. We use these segments when developing and documenting our methodology for determining the allowance for loan losses. PALs are collateralized by marketable securities with liquid markets. Credit lines are over-collateralized dependent on the type of security pledged. Collateral market value is monitored on a daily basis and a borrower’s committed line may be reduced or collateral may be liquidated if the collateral is in danger of falling below specified levels. As such, the loss inherent within this portfolio is limited. Schwab records an allowance for loan losses through a charge to earnings based on our estimate of probable losses in the existing portfolio. We review the allowance for loan losses quarterly, taking into consideration current economic conditions, the composition of the existing loan portfolio, past loss experience, and risks inherent in the portfolio to ensure that the allowance for loan losses is maintained at an appropriate level. The methodology to establish an allowance for loan losses utilizes statistical models that estimate prepayments, defaults, and probable losses for the loan segments based on predicted behavior of individual loans within the segments. The methodology considers the effects of borrower behavior and a variety of factors including, but not limited to, interest rates, housing price movements as measured by a housing price index, economic conditions, estimated defaults and foreclosures measured by historical and expected delinquencies, changes in prepayment speeds, LTV ratios, past loss experience, estimates of future loss severities, borrower credit risk, and the adequacy of collateral. The methodology also evaluates concentrations in the loan types, including loan products within those types, year of origination, and geographical distribution of collateral. Probable losses are forecast using a loan-level simulation of the delinquency status of the loans over the term of the loans. The simulation starts with the current relevant risk indicators, including the current delinquent status of each loan, the estimated current LTV ratio (Estimated Current LTV) of each loan, the term and structure of each loan, current key interest rates including U.S. Treasury and LIBOR rates, and borrower FICO scores. The more significant variables in the simulation include delinquency roll rates, loss severity, housing prices, and interest rates. Delinquency roll rates (i.e., the rates at which loans transition through delinquency stages and ultimately result in a loss) are estimated from our historical loss experience adjusted for current trends and market information. Loss severity estimates are based on our historical loss experience and market trends. The estimated loss severity (i.e., loss given default) used in the allowance for loan loss methodology for HELOC loans is higher than that used in the methodology for First Mortgages. Housing price trends are derived from historical home price indices and econometric forecasts of future home values. Factors affecting the home price index include housing inventory, unemployment, interest rates, and inflation expectations. Interest rate projections are based on the current term structure of interest rates and historical volatilities to project various possible future interest rate paths. This methodology results in loss factors that are applied to the outstanding balances to determine the allowance for loan loss for each loan type. Schwab considers loan modifications in which it makes an economic concession to a borrower experiencing financial difficulty to be troubled debt restructurings (TDRs). |
Nonaccrual, nonperforming and impaired loans | Nonaccrual, Nonperforming and Impaired loans First Mortgages, HELOCs, PALs, and other loans are placed on nonaccrual status upon becoming 90 days past due as to interest or principal (unless the loans are well-secured and in the process of collection), or when the full timely collection of interest or principal becomes uncertain, including loans to borrowers who have filed for bankruptcy. HELOC loans secured by a second lien are placed on non-accrual status if the associated first lien is 90 days or more delinquent, regardless of the payment status of the HELOC. When a loan is placed on nonaccrual status, the accrued and unpaid interest receivable is reversed and the loan is accounted for on the cash or cost recovery method until qualifying for return to accrual status. Generally, a nonaccrual loan may be returned to accrual status when all delinquent interest and principal is repaid and the borrower demonstrates a sustained period of performance, or when the loan is both well-secured and in the process of collection and collectability is no longer doubtful. Loans on nonaccrual status and other real estate owned are considered nonperforming assets. Nonaccrual loans, other real estate owned, and TDRs are considered impaired assets, as it is probable we will not collect all amounts due. |
Loan Charge-Offs | Loan Charge-Offs The Company charges off a loan in the period that it is deemed uncollectible and records a reduction in the allowance for loan losses and the loan balance. Our charge-off policy for First Mortgage and HELOC loans is to assess the value of the property when the loan has been delinquent for 180 days or has been discharged in bankruptcy proceedings, regardless of whether or not the property is in foreclosure, and charge-off the amount of the loan balance in excess of the estimated current value of the underlying property less estimated costs to sell. |
Equipment, office facilities, and property | Equipment, office facilities, and property Equipment, office facilities, and property are recorded at cost net of accumulated depreciation and amortization, except for land, which is recorded at cost. Equipment, office facilities, and property include certain capitalized costs of acquired or internally developed software. Costs for internally developed software are capitalized when the costs relate to development of approved projects for our internal needs that result in additional functionality. Costs related to preliminary project and post-project activities are expensed as incurred. Equipment, office facilities, and property (other than land) are depreciated on a straight-line basis over their estimated useful lives Equipment, office facilities, and property are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable. |
Goodwill | Goodwill Goodwill represents the fair value of acquired businesses in excess of the fair value of the individually identified net assets acquired. Goodwill is not amortized but is tested for impairment annually or whenever indications of impairment exist. Impairment exists when the carrying amount of goodwill exceeds its implied fair value, resulting in an impairment charge for this excess. Our annual impairment testing date is April 1 st . Schwab can elect to qualitatively assess goodwill for impairment if it is more likely than not that the fair value of a reporting unit exceeds its carrying value. A qualitative assessment considers macroeconomic and other industry-specific factors, such as trends in short-term and long-term interest rates and the ability to access capital, and Company specific factors such as market capitalization in excess of net assets, trends in revenue generating activities, and merger or acquisition activity. If the Company elects to bypass qualitatively assessing goodwill, or it is not more likely than not that the fair value of a reporting unit exceeds its carrying value, management estimates the fair values of each of the Company’s reporting units (defined as the Company’s businesses for which financial information is available and reviewed regularly by management) and compares it to their carrying values. The estimated fair values of the reporting units are established using an income approach based on a discounted cash flow model that includes significant assumptions about the future operating results and cash flows of each reporting unit, a market approach which compares each reporting unit to comparable companies in their respective industries, as well as a market capitalization analysis. |
Intangible assets | Intangible assets Finite-lived intangible assets are amortized over their useful lives in a manner that best reflects their economic benefit. All intangible assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable. |
Low-Income Housing Tax Credit (LIHTC) Investments | Low-Income Housing Tax Credit (LIHTC) Investments As part of our community reinvestment initiatives, Schwab invests with other institutional investors in funds that make equity investments in multifamily affordable housing properties. The Company receives tax credits and other tax benefits for these investments. We account for investments in qualified affordable housing projects using the proportional amortization method if the applicable requirements are met. The proportional amortization method amortizes the cost of the investment over the period in which the investor expects to receive tax credits and other tax benefits, and the resulting amortization is recognized as a component of taxes on income. The carrying value of LIHTC investments is included in other assets on the consolidated balance sheets. Unfunded commitments related to LIHTC investments are included in accrued expenses and other liabilities on the consolidated balance sheets. |
Guarantees and indemnifications | Guarantees and indemnifications Schwab recognizes, at the inception of a guarantee, a liability equal to the estimated fair value of the obligation undertaken in issuing the guarantee. The fair values of obligations relating to guarantees are estimated based on transactions for similar guarantees or expected present value measures. |
Advertising and market development | Advertising and market development Advertising and market development activities include the cost to produce and distribute marketing campaigns as well as client incentives and discounts. Such costs are generally expensed when incurred. |
Income taxes | Income taxes Schwab provides for income taxes on all transactions that have been recognized in the consolidated financial statements. Accordingly, deferred tax assets are adjusted to reflect the tax rates at which future taxable amounts will likely be settled or realized. The effects of tax rate changes on future deferred tax assets and deferred tax liabilities, as well as other changes in income tax laws, are recorded in earnings in the period during which such changes are enacted. Unrecognized tax benefits, which are included in accrued expenses and other liabilities, represent the difference between positions taken on tax return filings and estimated potential tax settlement outcomes. Accrued interest relating to unrecognized tax benefits is recorded in taxes on income and penalties are recorded in other expense. |
Share-based compensation | Share-based compensation Share-based compensation includes employee and board of director stock options and restricted stock units. Schwab measures compensation expense for these share-based payment arrangements based on their estimated fair values as of the grant date. The fair value of the share-based award is recognized over the vesting period as share-based compensation. Share-based compensation expense is based on units expected to vest and therefore is reduced for estimated forfeitures. Per the Company’s accounting policy election, forfeitures are estimated at the time of grant and reviewed annually based on the Company’s historical forfeiture experience. Share-based compensation expense is adjusted in subsequent periods if actual forfeitures differ from estimated forfeitures. Beginning January 1, 2017, the excess tax benefits or deficiencies from the exercise of stock options and the vesting of restricted stock units are recorded in taxes on income. |
Fair values of assets and liabilities | Fair values of assets and liabilities Fair value is defined as the price that would be received to sell an asset or the price paid to transfer a liability in an orderly transaction between market participants at the measurement date. Fair value measurement accounting guidance describes the fair value hierarchy for disclosing assets and liabilities measured at fair value based on the inputs used to value them. The fair value hierarchy maximizes the use of observable inputs and minimizes the use of unobservable inputs. Observable inputs are based on market pricing data obtained from sources independent of the Company. A quoted price in an active market provides the most reliable evidence of fair value and is generally used to measure fair value whenever available. Unobservable inputs reflect management’s judgment about the assumptions market participants would use in pricing the asset or liability. Where inputs used to measure fair value of an asset or liability are from different levels of the hierarchy, the asset or liability is categorized based on the lowest level input that is significant to the fair value measurement in its entirety. Assessing the significance of a particular input requires judgment. The fair value hierarchy includes three levels based on the objectivity of the inputs as follows: • Level 1 inputs are quoted prices in active markets as of the measurement date for identical assets or liabilities that the Company has the ability to access. • Level 2 inputs are inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. Level 2 inputs include quoted prices for similar assets and liabilities in active markets, and inputs other than quoted prices that are observable for the asset or liability, such as interest rates, benchmark yields, issuer spreads, new issue data, and collateral performance. • Level 3 inputs are unobservable inputs for the asset or liability, and include situations where there is little, if any, market activity for the asset or liability. The Company’s policy is to recognize transfers of financial instruments between levels as of the beginning of the reporting period in which a transfer occurs. Assets and liabilities measured at fair value on a recurring basis Schwab’s assets and liabilities measured at fair value on a recurring basis include certain cash equivalents, certain investments segregated and on deposit for regulatory purposes, other securities owned, and AFS securities. The Company uses the market approach to determine the fair value of assets and liabilities. When available, the Company uses quoted prices in active markets to measure the fair value of assets and liabilities. When utilizing market data and bid-ask spread, the Company uses the price within the bid-ask spread that best represents fair value. When quoted prices do not exist, the Company uses prices obtained from independent third-party pricing services to measure the fair value of investment assets. We generally obtain prices from at least three independent pricing sources for assets recorded at fair value. Our primary independent pricing service provides prices based on observable trades and discounted cash flows that incorporate observable information such as yields for similar types of securities (a benchmark interest rate plus observable spreads) and weighted-average maturity for the same or similar “to-be-issued” securities. We compare the prices obtained from the primary independent pricing service to the prices obtained from the additional independent pricing services to determine if the price obtained from the primary independent pricing service is reasonable. Schwab does not adjust the prices received from independent third-party pricing services unless such prices are inconsistent with the definition of fair value and result in a material difference in the recorded amounts. Fair value of other financial instruments Descriptions of the valuation methodologies and assumptions used to estimate the fair value of other financial instruments are described below. Our financial instruments not recorded at fair value but for which fair value can be approximated and disclosed include: • Cash and cash equivalents are short-term in nature and accordingly are recorded at amounts that approximate fair value. • Cash and investments segregated and on deposit for regulatory purposes include cash and securities purchased under resale agreements. Securities purchased under resale agreements are short-term in nature and are backed by collateral that both exceeds the carrying value of the resale agreement and is highly liquid in nature. Accordingly, the carrying values of these financial instruments approximate their fair values. • Receivables from/payables to brokers, dealers, and clearing organizations are short-term in nature, recorded at contractual amounts and historically have been settled at those values. Accordingly, the carrying values of these financial instruments approximate their fair values. • Receivables from/payables to brokerage clients — net are short-term in nature, recorded at contractual amounts and historically have been settled at those values. Accordingly, the carrying values of these financial instruments approximate their fair values. • HTM securities – The fair values of HTM securities are obtained using an independent third-party pricing service similar to investment assets recorded at fair value as discussed above. • Bank loans – The fair values of First Mortgages and HELOCs are estimated based on prices of mortgage-backed securities collateralized by similar types of loans. PALs are non-purpose revolving lines of credit secured by eligible assets; accordingly, the carrying values of these loans approximate their fair values. • Financial instruments included in other assets primarily consist of LIHTC investments, cost method investments and FHLB stock, whose carrying values approximate their fair values. FHLB stock is recorded at par, which approximates its fair value. • Bank deposits – Substantially all bank deposits have no stated maturity and are recorded at the amount payable on demand as of the balance sheet date. The carrying values of these deposits approximate their fair values. • Financial instruments included in accrued expenses and other liabilities consist of drafts payable and certain amounts due under contractual obligations, including unfunded LIHTC commitments. The carrying values of these instruments approximate their fair values. • Short-term borrowings consist of commercial paper, borrowings on Schwab’s uncommitted, unsecured bank credit lines, and funds drawn on Schwab Bank’s secured credit facility with the Federal Home Loan Bank of San Francisco. Due to the short-term nature of these borrowings, carrying value approximates fair value. • Long-term debt – Except for the finance lease obligation, the fair values of long-term debt are estimated using indicative, non-binding quotes from independent brokers. The Company validates indicative prices for its debt through comparison to other independent non-binding quotes. The finance lease obligation is recorded at carrying value, which approximates fair value. • Firm commitments to extend credit – Schwab extends credit to banking clients through HELOCs and PALs. The Company considers the fair value of these unused commitments to not be material because the interest rates earned on these balances are based on floating interest rates that reset monthly. |
New Accounting Standards | New Accounting Standards Adoption of New Accounting Standards Standard Description Required Date of Adoption Effects on the Financial Statements or Other Significant Matters ASU 2016-09, “Stock Compensation - Improvements to Employee Share-Based Payment Accounting (Topic 718)” Requires entities to recognize the income tax effects for the difference between GAAP and federal income tax treatment (i.e., excess tax benefit or deficiency) of share-based awards in the income statement when the awards vest or are settled, rather than recording such effects in additional paid-in capital. Provides entities with an accounting policy election to account for the impact of forfeitures of awards on compensation expense as they occur or continue with the current practice of estimating forfeitures at the grant date to determine the number of awards expected to vest and adjusting that estimate as necessary. January 1, 2017 The Company’s taxes on income were reduced by approximately $87 million in 2017. Future effects will depend on the Company’s share price, restricted stock vesting, and the volume of equity incentive options exercised. New Accounting Standards Not Yet Adopted Standard Description Required Date of Adoption Effects on the Financial Statements or Other Significant Matters ASU 2014-09, “Revenue from Contracts with Customers (Topic 606)” and related ASUs Clarifies that revenue from contracts with clients should be recognized in a manner that depicts the timing of the related transfer of goods or performance of services at an amount that reflects the expected consideration. Adoption allows either full or modified retrospective transition. Full retrospective transition will require a cumulative effect adjustment to retained earnings as of the earliest comparative period presented. Modified retrospective transition will require a cumulative effect adjustment to retained earnings as of the beginning of the reporting period in which the entity first applies the new guidance. January 1, 2018 The guidance does not apply to revenue earned from the Company’s loans and securities. Accordingly, net interest revenue will not be impacted. The primary impact for the Company will be the capitalization of sales commissions paid to employees for obtaining new contracts with clients on the consolidated balance sheets. These capitalized costs will result in an asset of $219 million and a related deferred tax liability of $51 million upon adoption. The asset will subsequently be amortized to expense over time as the related revenues are recognized. The Company does not expect this guidance will have a material impact on its EPS. Standard Description Required Date of Adoption Effects on the Financial Statements or Other Significant Matters ASU 2016-01, “Financial Instruments - Overall (Subtopic 825-10)” Requires: (i) equity investments to be measured at fair value, with changes in fair value recognized in net income, unless the equity method is applied or the equity investments do not have readily determinable fair values in which case a practical alternative may be elected; (ii) use of an exit price when measuring the fair value of financial instruments for disclosures; (iii) separate presentation of financial assets and liabilities by measurement category and form of instrument on the balance sheet or in the accompanying notes. January 1, 2018 The Company does not expect this guidance will have a material impact on its financial statements, including EPS. ASU 2016-02, “Leases (Topic 842)” Amends the accounting for leases by lessees and lessors. The primary change from the new guidance is the recognition of right-of-use assets and lease liabilities by lessees for those leases classified as operating leases. Additional changes include accounting for lease origination and executory costs, required lessee reassessments during the lease term due to changes in circumstances, and expanded lease disclosures. January 1, 2019 The Company does not expect this guidance will have a material impact on its EPS, but it will result in a gross up of the consolidated balance sheets due to recognition of right-of-use assets and lease liabilities based on the present value of remaining operating lease payments (see Note 13 for the undiscounted rental commitments for operating leases). The Company is evaluating its adoption method due to a recently proposed ASU that provides an alternative adoption method. The Company is refining its methodology to estimate the right of use assets and lease liabilities and working on system updates to apply the lease accounting changes. The full population of contracts that may be subject to balance sheet recognition is still being evaluated, but is nearly complete. The Company has further work to perform related to disclosures. Standard Description Required Date of Adoption Effects on the Financial Statements or Other Significant Matters ASU 2016-13, “Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments” Provides guidance for recognizing impairment of most debt instruments measured at amortized cost, including loans and HTM debt securities. Requires estimating current expected credit losses (CECL) over the remaining life of an instrument or a portfolio of instruments with similar risk characteristics based on relevant information about past events, current conditions, and reasonable forecasts. The initial estimate of, and the subsequent changes in, CECL will be recognized as credit loss expense through current earnings and will be reflected as an allowance for credit losses offsetting the carrying value of the financial instrument(s) on the balance sheet. Amends the OTTI model for AFS debt securities by requiring the use of an allowance, rather than directly reducing the carrying value of the security, and eliminating consideration of the length of time such security has been in an unrealized loss position as a factor in concluding whether a credit loss exists. January 1, 2020 (early adoption permitted) The Company is currently evaluating the impact of this guidance on its financial statements, including EPS. Initial implementation work performed to date has focused on evaluating the Company’s impacted assets, including loans and investment securities. The Company has also been evaluating its current data and system capabilities and considering additional data sources and system enhancements. Additional work to be completed includes an in-depth analysis for each impacted asset type, selection of methods, and changes to policies and procedures. ASU 2017-08, “Receivables - Nonrefundable Fees and Other Costs (Subtopic 310-20): Premium Amortization on Purchased Callable Debt Securities” Shortens the amortization period for the premium on certain callable debt securities to the earliest call date. The amendments are applicable to any purchased individual debt security with an explicit and noncontingent call feature with a fixed price on a preset date. ASU 2017-08 does not impact the accounting for callable debt securities held at a discount. January 1, 2019 (early adoption permitted) The Company is currently evaluating the impact of adopting this guidance on its financial statements, including EPS. |
Summary of Significant Accoun34
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
Schedule of estimated useful lives | Estimated useful lives are as follows: Equipment and office facilities 5 to 10 years Buildings 20 to 40 years Software 3 or 5 years (1) Leasehold improvements Lesser of useful life or lease term (1) Amortized over contractual term if less than three years. Equipment, office facilities, and property are detailed below: December 31, 2017 2016 Software $ 1,490 $ 1,335 Buildings 810 807 Leasehold improvements 357 342 Information technology equipment 326 299 Furniture and equipment 193 190 Land 167 168 Construction in progress 142 26 Telecommunications equipment 66 67 Total equipment, office facilities, and property 3,551 3,234 Accumulated depreciation and amortization (2,080 ) (1,935 ) Total equipment, office facilities, and property — net $ 1,471 $ 1,299 |
Receivables from and Payables35
Receivables from and Payables to Brokerage Clients (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Receivables [Abstract] | |
Summary of Receivables from and Payables to Brokerage Clients | Receivables from and payables to brokerage clients are detailed below: December 31, 2017 2016 Receivables Margin loans, net of allowance for doubtful accounts $ 18,331 $ 15,257 Other brokerage receivables 2,245 1,898 Receivables from brokerage clients — net $ 20,576 $ 17,155 Payables Interest-bearing payables $ 22,840 $ 28,336 Non-interest-bearing payables 8,403 7,558 Payables to brokerage clients $ 31,243 $ 35,894 |
Other Securities Owned (Tables)
Other Securities Owned (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Other Securities Owned [Abstract] | |
Summary of Other Securities Owned | A summary of other securities owned is as follows: December 31, 2017 2016 Equity and bond mutual funds $ 318 $ 272 Schwab Funds ® money market funds 135 108 State and municipal debt obligations 52 41 Equity, U.S. Government and corporate debt, and other securities 34 28 Total other securities owned $ 539 $ 449 |
Investment Securities (Tables)
Investment Securities (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Investments, Debt and Equity Securities [Abstract] | |
Amortized Cost, Gross Unrealized Gains and Losses, and Fair Value of Securities Available for Sale and Securities Held to Maturity | The amortized cost, gross unrealized gains and losses, and fair value of AFS and HTM securities are as follows: December 31, 2017 Amortized Gross Unrealized Gross Unrealized Fair Available for sale securities: U.S. agency mortgage-backed securities $ 20,915 $ 53 $ 39 $ 20,929 U.S. Treasury securities 9,583 — 83 9,500 Asset-backed securities (1) 9,019 34 6 9,047 Corporate debt securities (2) 6,154 16 1 6,169 Certificates of deposit 2,040 2 1 2,041 U.S. agency notes 1,914 — 8 1,906 Commercial paper (2) 313 — — 313 Foreign government agency securities 51 — 1 50 Non-agency commercial mortgage-backed securities 40 — — 40 Total available for sale securities $ 50,029 $ 105 $ 139 $ 49,995 Held to maturity securities: U.S. agency mortgage-backed securities $ 101,197 $ 290 $ 1,034 $ 100,453 Asset-backed securities (1) 12,937 127 2 13,062 Corporate debt securities (2) 4,078 13 5 4,086 U.S. state and municipal securities 1,247 57 — 1,304 Non-agency commercial mortgage-backed securities 994 10 5 999 U.S. Treasury securities 223 — 3 220 Certificates of deposit 200 — — 200 Foreign government agency securities 50 — 1 49 Total held to maturity securities $ 120,926 $ 497 $ 1,050 $ 120,373 December 31, 2016 Available for sale securities: U.S. agency mortgage-backed securities $ 33,167 $ 120 $ 92 $ 33,195 U.S. Treasury securities 8,679 3 59 8,623 Asset-backed securities (1) 20,520 29 214 20,335 Corporate debt securities (2) 9,850 20 18 9,852 Certificates of deposit 2,070 2 1 2,071 U.S. agency notes 1,915 — 8 1,907 Commercial paper (2) 214 — — 214 Non-agency commercial mortgage-backed securities 45 — — 45 U.S. state and municipal securities 1,167 2 46 1,123 Total available for sale securities $ 77,627 $ 176 $ 438 $ 77,365 Held to maturity securities: U.S. agency mortgage-backed securities $ 72,439 $ 324 $ 1,086 $ 71,677 Asset-backed securities (1) 941 — — 941 Corporate debt securities (2) 436 — — 436 U.S. state and municipal securities 68 1 1 68 Non-agency commercial mortgage-backed securities 997 11 4 1,004 U.S. Treasury securities 223 — 4 219 Commercial paper (2) 99 — — 99 Total held to maturity securities $ 75,203 $ 336 $ 1,095 $ 74,444 (1) Approximately 42% and 47% of Asset-backed securities held as of December 31, 2017 and 2016, respectively, were Federal Family Education Loan Program Asset-Backed Securities. Asset-backed securities collateralized by credit cards represented approximately 40% and 36% of the asset-backed securities held as of December 31, 2017 and 2016, respectively. (2) As of December 31, 2017 and 2016, approximately 41% and 49% , respectively, of the total AFS and HTM investments in Corporate debt securities and Commercial paper were issued by institutions in the financial services industry. As of December 31, 2017 and 2016, approximately 22% and 19% of the holdings of these securities were issued by institutions in the information technology industry. |
Securities with Unrealized Losses, Aggregated by Category and Period of Continuous Unrealized Loss | Securities with unrealized losses, aggregated by category and period of continuous unrealized loss, are as follows: Less than 12 months Total December 31, 2017 Fair Unrealized Fair Unrealized Fair Unrealized Available for sale securities: U.S. agency mortgage-backed securities $ 5,696 $ 21 $ 2,548 $ 18 $ 8,244 $ 39 U.S. Treasury securities 4,625 11 4,875 72 9,500 83 Asset-backed securities 904 3 424 3 1,328 6 Corporate debt securities 736 1 120 — 856 1 Certificates of deposit 799 1 — — 799 1 U.S. agency notes 99 — 1,807 8 1,906 8 Foreign government agency securities 50 1 — — 50 1 Total $ 12,909 $ 38 $ 9,774 $ 101 $ 22,683 $ 139 Held to maturity securities: U.S. agency mortgage-backed securities $ 42,102 $ 310 $ 24,753 $ 724 $ 66,855 $ 1,034 Asset-backed securities 1,124 2 72 — 1,196 2 Corporate debt securities 1,078 5 — — 1,078 5 Non-agency commercial mortgage-backed securities 607 5 — — 607 5 U.S. Treasury securities 220 3 — — 220 3 Foreign government agency securities 49 1 — — 49 1 Total $ 45,180 $ 326 $ 24,825 $ 724 $ 70,005 $ 1,050 Total securities with unrealized losses (1) $ 58,089 $ 364 $ 34,599 $ 825 $ 92,688 $ 1,189 December 31, 2016 Available for sale securities: U.S. agency mortgage-backed securities $ 14,816 $ 69 $ 2,931 $ 23 $ 17,747 $ 92 U.S. Treasury securities 6,926 59 — — 6,926 59 Asset-backed securities 1,670 13 9,237 201 10,907 214 Corporate debt securities 2,407 17 653 1 3,060 18 Certificates of deposit 474 — 100 1 574 1 U.S. agency notes 1,907 8 — — 1,907 8 U.S. state and municipal securities 956 46 — — 956 46 Total $ 29,156 $ 212 $ 12,921 $ 226 $ 42,077 $ 438 Held to maturity securities: U.S. agency mortgage-backed securities $ 51,361 $ 1,086 $ — $ — $ 51,361 $ 1,086 Non-agency commercial mortgage-backed securities 591 4 — — 591 4 U.S. Treasury securities 219 4 — — 219 4 U.S. state and municipal securities 14 1 — — 14 1 Total $ 52,185 $ 1,095 $ — $ — $ 52,185 $ 1,095 Total securities with unrealized losses (2) $ 81,341 $ 1,307 $ 12,921 $ 226 $ 94,262 $ 1,533 (1) The number of investment positions with unrealized losses totaled 251 for AFS securities and 938 for HTM securities. (2) The number of investment positions with unrealized losses totaled 627 for AFS securities and 612 for HTM securities. |
Maturities of Securities Available for Sale and Securities Held to Maturity | The maturities of AFS and HTM securities are as follows: December 31, 2017 Within After 1 year through After 5 years through After Total Available for sale securities: U.S. agency mortgage-backed securities (1) $ 61 $ 2,253 $ 8,282 $ 10,333 $ 20,929 U.S. Treasury securities 2,515 6,985 — — 9,500 Asset-backed securities 251 6,924 1,261 611 9,047 Corporate debt securities 3,135 3,034 — — 6,169 Certificates of deposit 575 1,466 — — 2,041 U.S. agency notes 1,658 248 — — 1,906 Commercial paper 313 — — — 313 Foreign government agency securities — 50 — — 50 Non-agency commercial mortgage-backed securities (1) — — — 40 40 Total fair value $ 8,508 $ 20,960 $ 9,543 $ 10,984 $ 49,995 Total amortized cost $ 8,517 $ 20,999 $ 9,546 $ 10,967 $ 50,029 Weighted-average yield (2) 1.53 % 1.63 % 1.72 % 1.79 % 1.66 % Held to maturity securities: U.S. agency mortgage-backed securities (1) $ 441 $ 12,680 $ 29,511 $ 57,821 $ 100,453 Asset-backed securities — 1,003 6,245 5,814 13,062 Corporate debt securities 351 3,206 454 75 4,086 U.S. state and municipal securities — — 121 1,183 1,304 Non-agency commercial mortgage-backed securities (1) — 362 — 637 999 U.S. Treasury securities — — 220 — 220 Certificates of deposit — 200 — — 200 Foreign government agency securities — 49 — — 49 Total fair value $ 792 $ 17,500 $ 36,551 $ 65,530 $ 120,373 Total amortized cost $ 792 $ 17,486 $ 36,544 $ 66,104 $ 120,926 Weighted-average yield (2) 1.97 % 2.45 % 2.35 % 2.16 % 2.26 % (1) Mortgage-backed securities have been allocated to maturity groupings based on final contractual maturities. Actual maturities will differ from final contractual maturities because borrowers on a certain portion of loans underlying these securities have the right to prepay their obligations. (2) The weighted-average yield is computed using the amortized cost at December 31, 2017. |
Proceeds and Gross Realized Gains And Losses from Sales of Securities Available for Sale | Proceeds and gross realized gains and losses from sales of AFS securities are as follows: Year Ended December 31, 2017 2016 2015 Proceeds $ 8,617 $ 5,537 $ 2,424 Gross realized gains 12 4 1 Gross realized losses — — 1 |
Bank Loans and Related Allowa38
Bank Loans and Related Allowance for Loan Losses (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Receivables [Abstract] | |
Composition of Bank Loans and Delinquency Analysis by Loan Segment | The composition of bank loans and delinquency analysis by loan type is as follows: December 31, 2017 Current 30-59 days 60-89 days >90 days past (3) Total past due and other Total Allowance for loan Total First Mortgages (1,2) $ 9,983 $ 14 $ 2 $ 17 $ 33 $ 10,016 $ 16 $ 10,000 HELOCs (1,2) 1,928 — 3 12 15 1,943 8 1,935 Pledged asset lines 4,361 4 4 — 8 4,369 — 4,369 Other 176 — — — — 176 2 174 Total bank loans $ 16,448 $ 18 $ 9 $ 29 $ 56 $ 16,504 $ 26 $ 16,478 December 31, 2016 First Mortgages (1,2) $ 9,100 $ 15 $ 3 $ 16 $ 34 $ 9,134 $ 17 $ 9,117 HELOCs (1,2) 2,336 2 2 10 14 2,350 8 2,342 Pledged asset lines 3,846 4 1 — 5 3,851 — 3,851 Other 94 — — — — 94 1 93 Total bank loans $ 15,376 $ 21 $ 6 $ 26 $ 53 $ 15,429 $ 26 $ 15,403 (1) First Mortgages and HELOCs include unamortized premiums and discounts and direct origination costs of $77 million and $78 million at December 31, 2017 and 2016 , respectively. (2) At December 31, 2017 and 2016 , 48% of the First Mortgage and HELOC portfolios were concentrated in California. These loans have performed in a manner consistent with the portfolio as a whole. (3) There were no loans accruing interest that were contractually 90 days or more past due at December 31, 2017 or 2016 . |
Changes in Allowance for Loan Losses | Changes in the allowance for loan losses were as follows: December 31, 2017 December 31, 2016 December 31, 2015 First Mortgages HELOCs Other Total (1) First Mortgages HELOCs Other Total (1) First Mortgages HELOCs Total (1) Balance at beginning of year $ 17 $ 8 $ 1 $ 26 $ 20 $ 11 $ — $ 31 $ 29 $ 13 $ 42 Charge-offs (2 ) (1 ) — (3 ) (1 ) (1 ) — (2 ) (1 ) (2 ) (3 ) Recoveries 1 1 1 3 1 1 — 2 1 2 3 Provision for loan losses — — — — (3 ) (3 ) 1 (5 ) (9 ) (2 ) (11 ) Balance at end of year $ 16 $ 8 $ 2 $ 26 $ 17 $ 8 $ 1 $ 26 $ 20 $ 11 $ 31 (1) All PALs were fully collateralized by securities with fair values in excess of borrowings at December 31, 2017 , 2016 , and 2015 . |
Impaired Bank Loan Assets | A summary of impaired bank loan related assets is as follows: December 31, 2017 2016 Nonaccrual loans (1) $ 28 $ 26 Other real estate owned (2) 3 5 Total nonperforming assets 31 31 Troubled debt restructurings 11 14 Total impaired assets $ 42 $ 45 (1) Nonaccrual loans include nonaccrual troubled debt restructurings. (2) Included in Other assets on the consolidated balance sheets. |
Credit Quality Indicators of Bank Loan Portfolio | The credit quality indicators of the bank loan portfolio are detailed below: December 31, 2017 Balance Weighted Average Utilization (1) Percent of Loans that are on First Mortgages: Estimated Current LTV < 70% $ 9,046 775 N/A 0.09 % >70% – < 90% 961 769 N/A 0.46 % >90% – < 100% 5 714 N/A 10.49 % >100% 4 713 N/A 6.23 % Total $ 10,016 775 N/A 0.14 % HELOCs: Estimated Current LTV (2) < 70% $ 1,773 772 32 % 0.18 % >70% – < 90% 148 755 47 % 0.84 % >90% – < 100% 14 742 64 % 2.85 % >100% 8 718 72 % 4.91 % Total $ 1,943 770 33 % 0.27 % Pledged asset lines: Weighted Average LTV (2) = 70% $ 4,369 765 41 % — December 31, 2016 Balance Weighted Average Utilization (1) Percent of Loans that are on First Mortgages: Estimated Current LTV < 70% $ 8,350 774 N/A 0.04 % >70% – < 90% 743 768 N/A 0.35 % >90% – < 100% 21 747 N/A 2.08 % >100% 20 709 N/A 14.50 % Total $ 9,134 773 N/A 0.10 % HELOCs: Estimated Current LTV (2) < 70% $ 2,070 771 35 % 0.12 % >70% – < 90% 234 757 50 % 0.40 % >90% – < 100% 29 747 66 % 1.74 % >100% 17 728 70 % 3.73 % Total $ 2,350 769 36 % 0.20 % Pledged asset lines: Weighted Average LTV (2) = 70% $ 3,851 763 46 % — (1) The Utilization Rate is calculated using the outstanding balance divided by the associated total line of credit. (2) Represents the LTV for the full line of credit (drawn and undrawn). N/A Not applicable. December 31, 2017 First Mortgages HELOCs Year of origination Pre-2013 $ 1,478 $ 1,349 2013 1,326 147 2014 530 116 2015 1,218 128 2016 2,886 111 2017 2,578 92 Total $ 10,016 $ 1,943 Origination FICO <620 $ 6 $ 1 620 – 679 89 10 680 – 739 1,569 365 > 740 8,352 1,567 Total $ 10,016 $ 1,943 Origination LTV < 70% $ 7,569 $ 1,360 >70% – < 90% 2,441 574 >90% – < 100% 6 9 Total $ 10,016 $ 1,943 December 31, 2016 First Mortgages HELOCs Year of origination Pre-2013 $ 2,136 $ 1,765 2013 1,746 193 2014 685 152 2015 1,458 146 2016 3,109 94 Total $ 9,134 $ 2,350 Origination FICO <620 $ 8 $ — 620 – 679 92 13 680 – 739 1,427 432 > 740 7,607 1,905 Total $ 9,134 $ 2,350 Origination LTV < 70% $ 6,865 $ 1,628 >70% – < 90% 2,260 709 >90% – < 100% 9 13 Total $ 9,134 $ 2,350 |
Convert to Amortizing Loans | The following table presents when current outstanding HELOCs will convert to amortizing loans: December 31, 2017 Balance Converted to amortizing loan by period end $ 437 Within 1 year 559 > 1 year – 3 years 204 > 3 years – 5 years 149 > 5 years 594 Total $ 1,943 |
Equipment, Office Facilities,39
Equipment, Office Facilities, and Property (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Equipment, Office Facilities, and Property | Estimated useful lives are as follows: Equipment and office facilities 5 to 10 years Buildings 20 to 40 years Software 3 or 5 years (1) Leasehold improvements Lesser of useful life or lease term (1) Amortized over contractual term if less than three years. Equipment, office facilities, and property are detailed below: December 31, 2017 2016 Software $ 1,490 $ 1,335 Buildings 810 807 Leasehold improvements 357 342 Information technology equipment 326 299 Furniture and equipment 193 190 Land 167 168 Construction in progress 142 26 Telecommunications equipment 66 67 Total equipment, office facilities, and property 3,551 3,234 Accumulated depreciation and amortization (2,080 ) (1,935 ) Total equipment, office facilities, and property — net $ 1,471 $ 1,299 |
Intangible Assets and Goodwill
Intangible Assets and Goodwill (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets and Goodwill | Intangible assets and goodwill are detailed below: December 31, 2017 December 31, 2016 Gross Carrying Accumulated Net Carrying Gross Carrying Accumulated Net Carrying Client relationships $ 274 $ 189 $ 85 $ 274 $ 169 $ 105 Technology 89 66 23 89 56 33 Trade name 15 15 — 16 10 6 Total intangible assets $ 378 $ 270 $ 108 $ 379 $ 235 $ 144 |
Estimated Future Annual Amortization Expense for Intangible Assets | Estimated future annual amortization expense for intangible assets as of December 31, 2017 , is as follows: 2018 $ 30 2019 27 2020 22 2021 15 2022 11 Thereafter 2 Total $ 107 |
Changes in Carrying Amount of Goodwill as Allocated to Reportable Segments | The changes in the carrying amount of goodwill, as allocated to our reportable segments for purposes of testing goodwill for impairment are presented in the following table: Investor Advisor Total Balance at December 31, 2015 $ 1,096 $ 131 $ 1,227 Goodwill acquired and other changes during the period — — — Balance at December 31, 2016 1,096 131 1,227 Goodwill acquired and other changes during the period — — — Balance at December 31, 2017 $ 1,096 $ 131 $ 1,227 |
Other Assets (Tables)
Other Assets (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Components of Other Assets | The components of other assets are as follows: December 31, 2017 2016 Accounts receivable (1) $ 461 $ 451 Interest and dividends receivable 413 325 FHLB stock (2) 405 81 Other investments (3) 376 243 Prepaid expenses 126 90 Deferred tax asset — net 76 143 Other 92 75 Total other assets $ 1,949 $ 1,408 (1) Accounts receivable includes accrued service fee income and a receivable from our loan servicer. (2) Investments in stock of the FHLB can only be sold to the issuer at its par value. Any cash dividends received from these investments are recognized as interest income in the consolidated statements of income. (3) Predominantly CRA-related, including LIHTC investments. |
Variable Interest Entities (Tab
Variable Interest Entities (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Variable Interest Entities [Abstract] | |
Aggregate Assets, Liabilities and Maximum Exposure to Loss | The aggregate assets, liabilities, and maximum exposure to loss from those VIEs in which Schwab holds a variable interest, but as to which we have concluded it is not the primary beneficiary, are summarized in the table below: December 31, 2017 December 31, 2016 Aggregate Aggregate Maximum exposure Aggregate Aggregate Maximum exposure to loss LIHTC Investments (1) $ 304 $ 203 $ 304 $ 189 $ 135 $ 189 Other CRA Investments (2) 69 — 125 60 — 80 Total $ 373 $ 203 $ 429 $ 249 $ 135 $ 269 (1) Aggregate assets and aggregate liabilities are included in other assets and accrued expenses and other liabilities, respectively, on the consolidated balance sheets. (2) Other CRA investments are recorded using either the cost method, equity method, or as HTM securities. Aggregate assets are included in other assets, HTM securities, or bank loans – net on the consolidated balance sheets. |
Bank Deposits (Tables)
Bank Deposits (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Banking and Thrift [Abstract] | |
Deposits from Banking Clients Consisting of Interest Bearing and Noninterest Bearing Deposits | Bank deposits consist of interest-bearing and non-interest-bearing deposits as follows: December 31, 2017 2016 Interest-bearing deposits: Deposits swept from brokerage accounts $ 148,212 $ 141,146 Checking 13,388 13,842 Savings and other 7,264 7,792 Total interest-bearing deposits 168,864 162,780 Non-interest-bearing deposits 792 674 Total bank deposits $ 169,656 $ 163,454 |
Borrowings (Tables)
Borrowings (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Debt Disclosure [Abstract] | |
Long-term Debt Including Unamortized Debt Discounts and Premiums | ong-term debt by instrument outstanding as of December 31, 2017 and 2016 . Date of Principal Amount Outstanding Issuance 2017 2016 Fixed-Rate Senior Notes: 1.500% due March 10, 2018 (1) 03/10/15 $ 625 $ 625 2.200% due July 25, 2018 07/25/13 275 275 4.450% due July 22, 2020 07/22/10 700 700 3.225% due September 1, 2022 08/29/12 256 256 2.650% due January 25, 2023 12/07/17 800 — 3.000% due March 10, 2025 03/10/15 375 375 3.450% due February 13, 2026 11/13/15 350 350 3.200% due March 2, 2027 03/02/17 650 — 3.200% due January 25, 2028 12/07/17 700 — Total fixed-rate senior notes 4,731 2,581 6.375% Medium-Term Notes — 250 5.450% Finance lease obligation (2) 06/04/04 61 68 Unamortized discount, net (14 ) (13 ) Debt issuance costs (25 ) (10 ) Total long-term debt $ 4,753 $ 2,876 (1) Redeemed on February 8, 2018. See Note 25. (2) Schwab has a finance lease obligation related to an office building and land under a 20 -year lease. The remaining finance lease obligation is being reduced by a portion of the lease payments over the remaining lease term through June 30, 2024. |
Annual Maturities on Long-term Debt Outstanding | Annual maturities on long-term debt outstanding at December 31, 2017 , are as follows: 2018 $ 908 2019 8 2020 709 2021 9 2022 266 Thereafter 2,892 Total maturities 4,792 Unamortized discount, net (14 ) Debt issuance costs (25 ) Total long-term debt $ 4,753 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Commitments to Purchase or Sell | The Company’s commitments to extend credit on bank lines of credit and to purchase First Mortgages are as follows: December 31, 2017 2016 Commitments to extend credit related to unused HELOCs, PALs, and other lines of credit $ 10,060 $ 8,445 Commitments to purchase First Mortgage loans 308 466 Total $ 10,368 $ 8,911 |
Future Annual Minimum Rental Commitments, Net of Contractual Subleases | Future annual minimum rental commitments under these leases, net of contractual subleases are as follows: December 31, 2017 Operating Subleases Net 2018 $ 137 $ 6 $ 131 2019 119 4 115 2020 109 4 105 2021 86 4 82 2022 68 2 66 Thereafter 310 1 309 Total $ 829 $ 21 $ 808 |
Purchase Obligations | The Company has purchase obligations as follows: December 31, 2017 2018 $ 305 2019 148 2020 71 2021 26 2022 22 Thereafter 181 Total $ 753 |
Financial Instruments Subject46
Financial Instruments Subject to Off-Balance Sheet Credit Risk (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Offsetting [Abstract] | |
Offsetting Assets and Liabilities | The following table presents information about our resale agreements and securities lending activity depicting the potential effect of rights of setoff between these recognized assets and recognized liabilities at December 31, 2017 and 2016 . Gross Amounts Not Offset in the Gross Gross Amounts Offset in the Consolidated Net Amounts Presented in the Consolidated Counterparty Collateral Net December 31, 2017 Assets: Resale agreements (1) $ 6,596 $ — $ 6,596 $ — $ (6,596 ) (2) $ — Securities borrowed (3) 222 — 222 (199 ) (22 ) 1 Total $ 6,818 $ — $ 6,818 $ (199 ) $ (6,618 ) $ 1 Liabilities: Securities loaned (4,5) $ 966 $ — $ 966 $ (199 ) $ (670 ) $ 97 Total $ 966 $ — $ 966 $ (199 ) $ (670 ) $ 97 December 31, 2016 Assets: Resale agreements (1) $ 9,547 $ — $ 9,547 $ — $ (9,547 ) (2) $ — Securities borrowed (3) 393 — 393 (200 ) (189 ) 4 Total $ 9,940 $ — $ 9,940 $ (200 ) $ (9,736 ) $ 4 Liabilities: Securities loaned (4,5) $ 1,996 $ — $ 1,996 $ (200 ) $ (1,660 ) $ 136 Total $ 1,996 $ — $ 1,996 $ (200 ) $ (1,660 ) $ 136 (1) Included in cash and investments segregated and on deposit for regulatory purposes in the consolidated balance sheets. (2) Actual collateral was greater than or equal to 102% of the related assets. At December 31, 2017 and 2016 , the fair value of collateral received in connection with resale agreements that are available to be repledged or sold was $6.7 billion and $9.8 billion , respectively. (3) Included in receivables from brokers, dealers, and clearing organizations in the consolidated balance sheets. (4) Included in payables to brokers, dealers, and clearing organizations in the consolidated balance sheets. The cash collateral received from counterparties under securities lending transactions was equal to or greater than the market value of the securities loaned at December 31, 2017 and 2016 . (5) Securities loaned are predominantly comprised of equity securities held in client brokerage accounts with overnight and continuous remaining contractual maturities. |
Summary of the Fair Value of Client Securities Available to Utilize as Collateral and Amounts Pledged | December 31, 2017 2016 Fair value of client securities available to be pledged $ 25,905 $ 21,516 Fair value of client securities pledged for: Fulfillment of requirements with the Options Clearing Corporation (1) 2,280 1,519 Fulfillment of client short sales 2,011 2,048 Securities lending to other broker-dealers 784 1,626 Total collateral pledged $ 5,075 $ 5,193 Note: Excludes amounts available and pledged for securities lending from fully-paid client securities. The fair value of fully-paid client securities available and pledged was $78 million as of December 31, 2017 and $58 million as of December 31, 2016 . (1) Client securities pledged to fulfill client margin requirements for open option contracts established with the Options Clearing Corporation. |
Fair Values of Assets and Lia47
Fair Values of Assets and Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Fair Value Disclosures [Abstract] | |
Fair Value Hierarchy for Assets and Liabilities Measured at Fair Value on a Recurring Basis | Liabilities recorded at fair value were not material, and therefore are not included in the following tables: December 31, 2017 Quoted Prices Significant Significant Unobservable Inputs Balance at Cash equivalents: Money market funds $ 2,727 $ — $ — $ 2,727 Total cash equivalents 2,727 — — 2,727 Investments segregated and on deposit for regulatory purposes: Certificates of deposit — 2,198 — 2,198 U.S. Government securities — 3,658 — 3,658 Total investments segregated and on deposit for regulatory purposes — 5,856 — 5,856 Other securities owned: Equity and bond mutual funds 318 — — 318 Schwab Funds ® money market funds 135 — — 135 State and municipal debt obligations — 52 — 52 Equity, U.S. Government and corporate debt, and other securities 2 32 — 34 Total other securities owned 455 84 — 539 Available for sale securities: U.S. agency mortgage-backed securities — 20,929 — 20,929 U.S. Treasury securities — 9,500 — 9,500 Asset-backed securities — 9,047 — 9,047 Corporate debt securities — 6,169 — 6,169 Certificates of deposit — 2,041 — 2,041 U.S. agency notes — 1,906 — 1,906 Commercial paper — 313 — 313 Foreign government agency securities — 50 — 50 Non-agency commercial mortgage-backed securities — 40 — 40 Total available for sale securities — 49,995 — 49,995 Total $ 3,182 $ 55,935 $ — $ 59,117 December 31, 2016 Quoted Prices Significant Significant Unobservable Inputs Balance at Cash equivalents: Money market funds $ 1,514 $ — $ — $ 1,514 Total cash equivalents 1,514 — — 1,514 Investments segregated and on deposit for regulatory purposes: Certificates of deposit — 2,525 — 2,525 U.S. Government securities — 6,111 — 6,111 Total investments segregated and on deposit for regulatory purposes — 8,636 — 8,636 Other securities owned: Equity and bond mutual funds 272 — — 272 Schwab Funds ® money market funds 108 — — 108 State and municipal debt obligations — 41 — 41 Equity, U.S. Government and corporate debt, and other securities 2 26 — 28 Total other securities owned 382 67 — 449 Available for sale securities: U.S. agency mortgage-backed securities — 33,195 — 33,195 U.S. Treasury securities — 8,623 — 8,623 Asset-backed securities — 20,335 — 20,335 Corporate debt securities — 9,852 — 9,852 Certificates of deposit — 2,071 — 2,071 U.S. agency notes — 1,907 — 1,907 Commercial paper — 214 — 214 U.S. state and municipal securities — 1,123 — 1,123 Non-agency commercial mortgage-backed securities — 45 — 45 Total available for sale securities — 77,365 — 77,365 Total $ 1,896 $ 86,068 $ — $ 87,964 |
Fair Value of Other Financial Instruments | The following tables present the fair value hierarchy for other financial instruments: December 31, 2017 Carrying Quoted Prices in Active Markets Significant Significant Unobservable Inputs Balance at Assets: Cash and cash equivalents $ 11,490 $ — $ 11,490 $ — $ 11,490 Cash and investments segregated and on deposit for regulatory purposes 9,277 — 9,277 — 9,277 Receivables from brokers, dealers, and clearing organizations 649 — 649 — 649 Receivables from brokerage clients — net 20,568 — 20,568 — 20,568 Held to maturity securities: U.S. agency mortgage-backed securities 101,197 — 100,453 — 100,453 Asset-backed securities 12,937 — 13,062 — 13,062 Corporate debt securities 4,078 — 4,086 — 4,086 U.S. state and municipal securities 1,247 — 1,304 — 1,304 Non-agency commercial mortgage-backed securities 994 — 999 — 999 U.S. Treasury securities 223 — 220 — 220 Certificates of deposit 200 — 200 — 200 Foreign government agency securities 50 — 49 — 49 Total held to maturity securities 120,926 — 120,373 — 120,373 Bank loans — net: First Mortgages 10,000 — 9,917 — 9,917 HELOCs 1,935 — 2,025 — 2,025 Pledged asset lines 4,369 — 4,369 — 4,369 Other 174 — 174 — 174 Total bank loans — net 16,478 — 16,485 — 16,485 Other assets 781 — 781 — 781 Total $ 180,169 $ — $ 179,623 $ — $ 179,623 Liabilities: Bank deposits $ 169,656 $ — $ 169,656 $ — $ 169,656 Payables to brokers, dealers, and clearing organizations 1,287 — 1,287 — 1,287 Payables to brokerage clients 31,243 — 31,243 — 31,243 Accrued expenses and other liabilities 1,463 — 1,463 — 1,463 Short-term borrowings 15,000 — 15,000 — 15,000 Long-term debt 4,753 — 4,811 — 4,811 Total $ 223,402 $ — $ 223,460 $ — $ 223,460 December 31, 2016 Carrying Quoted Prices in Active Markets Significant Significant Unobservable Inputs Balance at Assets: Cash and cash equivalents $ 9,314 $ — $ 9,314 $ — $ 9,314 Cash and investments segregated and on deposit for regulatory purposes 13,533 — 13,533 — 13,533 Receivables from brokers, dealers, and clearing organizations 728 — 728 — 728 Receivables from brokerage clients — net 17,151 — 17,151 — 17,151 Held to maturity securities: U.S. agency mortgage-backed securities 72,439 — 71,677 — 71,677 Asset-backed securities 941 — 941 — 941 Corporate debt securities 436 — 436 — 436 U.S. state and municipal securities 68 — 68 — 68 Non-agency commercial mortgage-backed securities 997 — 1,004 — 1,004 U.S. Treasury securities 223 — 219 — 219 Commercial paper 99 — 99 — 99 Total held to maturity securities 75,203 — 74,444 — 74,444 Bank loans — net: First Mortgages 9,117 — 9,064 — 9,064 HELOCs 2,342 — 2,458 — 2,458 Pledged asset lines 3,851 — 3,851 — 3,851 Other 93 — 94 — 94 Total bank loans — net 15,403 — 15,467 — 15,467 Other assets 328 — 328 — 328 Total $ 131,660 $ — $ 130,965 $ — $ 130,965 Liabilities: Bank deposits $ 163,454 $ — $ 163,454 $ — $ 163,454 Payables to brokers, dealers, and clearing organizations 2,407 — 2,407 — 2,407 Payables to brokerage clients 35,894 — 35,894 — 35,894 Accrued expenses and other liabilities 1,169 — 1,169 — 1,169 Long-term debt 2,876 — 2,941 — 2,941 Total $ 205,800 $ — $ 205,865 $ — $ 205,865 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Stockholders' Equity Note [Abstract] | |
Preferred Stock Issued and Outstanding | The following is a summary of CSC’s non-cumulative perpetual preferred stock outstanding as of such dates: Dividend Rate in Effect at December 31, 2017 Date at Which Dividend Rate Becomes Floating Floating Annual Rate of Three-month LIBOR plus: Shares Issued and Outstanding (In thousands) at December 31, (1) Liquidation Preference Per Share Carrying Value at December 31, Earliest Redemption Date 2017 2016 2017 2016 Issue Date Fixed-rate: Series B (2) — 485 1,000 $ — $ 482 06/06/12 — — N/A N/A Series C 600 600 1,000 585 585 08/03/15 6.000 % 12/01/20 N/A N/A Series D 750 750 1,000 728 728 03/07/16 5.950 % 06/01/21 N/A N/A Fixed-to-floating-rate: Series A 400 400 1,000 397 397 01/26/12 7.000 % 02/01/22 02/01/22 4.820 % Series E 6 6 100,000 591 591 10/31/16 4.625 % 03/01/22 03/01/22 3.315 % Series F 5 — 100,000 492 — 10/31/17 5.000 % 12/01/27 12/01/27 2.575 % Total Preferred Stock 1,761 2,241 $ 2,793 $ 2,783 (1) Represented by depositary shares, except for Series A (2) On December 1, 2017, CSC redeemed all of the outstanding shares of its 6.00% Non-Cumulative Preferred Stock, Series B at their stated redemption value. |
Accumulated Other Comprehensi49
Accumulated Other Comprehensive Income (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Equity [Abstract] | |
Components of Other Comprehensive Income (Loss) | AOCI represents cumulative gains and losses that are not reflected in earnings. The components of other comprehensive income (loss) are as follows: Year Ended December 31, 2017 2016 2015 Before Tax Net of Before Tax Net of Before Tax Net of Change in net unrealized gain (loss) on available for sale securities: Net unrealized gain (loss) $ 13 $ (7 ) $ 6 $ (44 ) $ 16 $ (28 ) $ (477 ) $ 178 $ (299 ) Reclassification of net unrealized loss on securities transferred to held to maturity (1) 227 (85 ) 142 — — — — — — Other reclassifications included in other revenue (12 ) 4 (8 ) (4 ) 2 (2 ) — — — Change in net unrealized gain (loss) on held to maturity securities: Reclassification of net unrealized loss on securities transferred from available for sale (1) (227 ) 85 (142 ) — — — — — — Amortization of amounts previously recorded upon transfer from available for sale 31 (11 ) 20 — — — — — — Other (11 ) 4 (7 ) 1 — 1 — — — Other comprehensive income (loss) $ 21 $ (10 ) $ 11 $ (47 ) $ 18 $ (29 ) $ (477 ) $ 178 $ (299 ) (1) See Note 5 for discussion of the transfer of securities from the AFS category to the HTM category during the first quarter of 2017. |
Accumulated Other Comprehensive Income Balances | AOCI balances are as follows: Total Balance at December 31, 2014 $ 165 Net unrealized gain (loss) on available for sale securities (299 ) Balance at December 31, 2015 $ (134 ) Net unrealized gain (loss) on available for sale securities (30 ) Other $ 1 Balance at December 31, 2016 $ (163 ) Available for sale securities: Net unrealized gain (loss) 6 Reclassification of net unrealized loss on securities transferred to held to maturity 142 Other reclassifications included in other revenue (8 ) Held to maturity securities: Reclassification of net unrealized loss on securities transferred from available for sale (142 ) Amortization of amounts previously recorded upon transfer to held to maturity from available for sale 20 Other (7 ) Balance at December 31, 2017 $ (152 ) |
Employee Incentive, Retiremen50
Employee Incentive, Retirement, Deferred Compensation, and Career Achievement Plans (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Retirement Benefits [Abstract] | |
Stock-Based Compensation Expense and Related Income Tax Benefit | A summary of share-based compensation expense and related income tax benefit is as follows: Year Ended December 31, 2017 2016 2015 Stock option expense $ 50 $ 45 $ 46 Restricted stock unit expense 94 89 83 Employee stock purchase plan expense 9 7 6 Total share-based compensation expense $ 153 $ 141 $ 135 Income tax benefit on share-based compensation expense (1) $ (57 ) $ (53 ) $ (51 ) (1) Excludes the 2017 income tax benefit of $87 million due to the adoption of ASU 2016-09, as disclosed in Note 2. |
Stock Option Activity | Stock option activity is summarized below: Number Weighted- Average Exercise Price Weighted- Average Remaining Contractual Aggregate Intrinsic Outstanding at December 31, 2016 37 $ 22.12 6.50 $ 649 Granted 4 43.71 Exercised (9 ) 18.20 Forfeited — 31.02 Expired — 24.82 Outstanding at December 31, 2017 32 $ 26.16 6.38 $ 814 Vested and expected to vest at December 31, 2017 31 $ 26.02 6.35 $ 811 Vested and exercisable at December 31, 2017 20 $ 20.82 5.02 $ 612 |
Information on Stock Options Granted and Exercised | Information on stock options granted and exercised is presented below: Year Ended December 31, 2017 2016 2015 Weighted-average fair value of options granted per share $ 13.04 $ 8.73 $ 8.56 Cash received from options exercised 171 144 90 Tax benefit realized on options exercised 70 38 22 Aggregate intrinsic value of options exercised 241 149 90 |
Assumptions Used to Value Options Granted and Their Expected Lives | The assumptions used to value the options granted during the years presented and their expected lives were as follows: Year Ended December 31, 2017 2016 2015 Weighted-average expected dividend yield 1.06 % 1.22 % 1.22 % Weighted-average expected volatility 34 % 30 % 28 % Weighted-average risk-free interest rate 2.1 % 1.8 % 2.2 % Expected life (in years) 4.1 - 5.3 4.7 - 7.3 4.7 - 7.5 |
Restricted Stock Units Activity | The Company’s restricted stock units activity is summarized below: Number Weighted- Average Grant Date Fair Value Outstanding at December 31, 2016 8 $ 29.41 Granted 2 44.23 Vested (3 ) 28.15 Forfeited — 30.86 Outstanding at December 31, 2017 7 $ 35.16 |
Schedule of Changes in Projected Benefit Obligations | The following table presents the changes in projected benefit obligation: December 31, 2017 2016 Projected benefit obligation at beginning of year $ 26 $ 17 Benefit cost 9 7 Actuarial (gain)/loss 9 2 Projected benefit obligation at end of year (1) $ 44 $ 26 (1) This amount is recognized as a liability on the consolidated balance sheets and also depicts the accumulated benefit obligation. |
Schedule of Net Benefit Costs and Assumptions Used | The following table presents the net benefit cost and assumptions used to determine the net benefit cost: December 31, 2017 2016 2015 Service cost $ 8 $ 6 $ 8 Interest cost 1 1 — Net benefit cost $ 9 $ 7 $ 8 Assumptions used to determine net benefit cost: Discount rate 3.71 % 4.62 % 4.19 % Rate of compensation increase 3.00 % 3.00 % 3.00 % Investment crediting rate for notional account balances 6.50 % 6.50 % 6.50 % |
Schedule of Components and Amounts Impacting AOCI | The following tables present the change in AOCI attributable to the components of the net cost and the change in benefit obligation and the amounts recognized in AOCI: December 31, 2017 2016 Change in AOCI: Beginning balance $ 1 $ — Actuarial gain/(loss) (11 ) 1 Ending balance $ (10 ) $ 1 December 31, 2017 2016 Components in AOCI: Net gain/(loss) $ (10 ) $ 1 Amount recognized in AOCI $ (10 ) $ 1 Tax effect $ 4 $ — Net amount recognized in AOCI $ (6 ) $ 1 |
Taxes on Income (Tables)
Taxes on Income (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Income Tax Expense | The components of taxes on income are as follows: Year Ended December 31, 2017 2016 2015 Current: Federal $ 1,132 $ 980 $ 740 State 106 109 99 Total current 1,238 1,089 839 Deferred: Federal 58 13 (6 ) State — 2 (1 ) Total deferred 58 15 (7 ) Taxes on income $ 1,296 $ 1,104 $ 832 |
Temporary Differences That Created Deferred Tax Assets and Liabilities | The temporary differences that created deferred tax assets and liabilities are detailed below: December 31, 2017 2016 Deferred tax assets: Employee compensation, severance, and benefits $ 133 $ 216 Net unrealized loss on available for sale securities 57 97 Reserves and allowances 15 25 Facilities lease commitments 14 25 State and local taxes 12 17 Net operating loss carryforwards 5 5 Other 3 — Total deferred tax assets 239 385 Valuation allowance (2 ) (3 ) Deferred tax assets — net of valuation allowance 237 382 Deferred tax liabilities: Capitalized internal-use software development costs (89 ) (118 ) Depreciation and amortization (72 ) (114 ) Other — (7 ) Total deferred tax liabilities (161 ) (239 ) Deferred tax asset — net (1) $ 76 $ 143 (1) Amounts are included in other assets on the consolidated balance sheets at both December 31, 2017 and 2016 . |
Reconciliation of Federal Statutory Income Tax Rate to Effective Income Tax Rate | A reconciliation of the federal statutory income tax rate to the effective income tax rate is as follows: Year Ended December 31, 2017 2016 2015 Federal statutory income tax rate 35.0 % 35.0 % 35.0 % State income taxes, net of federal tax benefit 2.2 2.4 2.6 Equity compensation benefit (2.4 ) — — Other (1) 0.7 (0.5 ) (1.1 ) Effective income tax rate 35.5 % 36.9 % 36.5 % (1) Includes the impact of one-time charge to taxes on income associated with the Tax Act. |
Reconciliation of Beginning and Ending Amount of Unrecognized Tax Benefits | A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows: December 31, 2017 2016 Balance at beginning of year $ 93 $ 48 Additions for tax positions related to the current year 22 16 Additions for tax positions related to prior years 15 32 Reductions for tax positions related to prior years (2 ) (2 ) Reductions due to lapse of statute of limitations — — Reductions for settlements with tax authorities (17 ) (1 ) Balance at end of year $ 111 $ 93 |
Earnings Per Common Share (Tabl
Earnings Per Common Share (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Earnings Per Share [Abstract] | |
EPS under Basic and Diluted Computations | The computation of diluted EPS is similar to the computation of basic EPS except that the denominator is increased to include the number of additional common shares that would have been outstanding if dilutive potential common shares had been issued. Dilutive potential common shares include, if dilutive, the effect of outstanding stock options and non-vested restricted stock units. EPS under the basic and diluted computations is as follows: Year Ended December 31, 2017 2016 2015 Net income $ 2,354 $ 1,889 $ 1,447 Preferred stock dividends and other (1) (174 ) (143 ) (83 ) Net income available to common stockholders $ 2,180 $ 1,746 $ 1,364 Weighted-average common shares outstanding — basic 1,339 1,324 1,315 Common stock equivalent shares related to stock incentive plans 14 10 12 Weighted-average common shares outstanding — diluted (2) 1,353 1,334 1,327 Basic EPS $ 1.63 $ 1.32 $ 1.04 Diluted EPS $ 1.61 $ 1.31 $ 1.03 (1) Includes preferred stock dividends and undistributed earnings and dividends allocated to non-vested restricted stock units. (2) Antidilutive stock options and restricted stock units excluded from the calculation of diluted EPS totaled 15 million , 26 million , and 23 million shares in 2017 , 2016 , and 2015 , respectively. |
Regulatory Requirements (Tables
Regulatory Requirements (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Banking and Thrift [Abstract] | |
Regulatory Capital and Ratios | The regulatory capital and ratios for CSC (consolidated) and Schwab Bank are as follows: Actual Minimum to be Minimum Capital December 31, 2017 Amount Ratio Amount Ratio Amount Ratio CSC Common Equity Tier 1 Risk-Based Capital $ 14,630 19.3 % N/A $ 3,414 4.5 % Tier 1 Risk-Based Capital 17,423 23.0 % N/A 4,552 6.0 % Total Risk-Based Capital 17,452 23.0 % N/A 6,069 8.0 % Tier 1 Leverage 17,423 7.6 % N/A 9,218 4.0 % Schwab Bank Common Equity Tier 1 Risk-Based Capital $ 13,355 20.1 % $ 4,324 6.5 % $ 2,993 4.5 % Tier 1 Risk-Based Capital 13,355 20.1 % 5,321 8.0 % 3,991 6.0 % Total Risk-Based Capital 13,382 20.1 % 6,652 10.0 % 5,321 8.0 % Tier 1 Leverage 13,355 7.1 % 9,462 5.0 % 7,569 4.0 % December 31, 2016 CSC Common Equity Tier 1 Risk-Based Capital $ 12,574 18.4 % N/A $ 3,068 4.5 % Tier 1 Risk-Based Capital 15,357 22.5 % N/A 4,091 6.0 % Total Risk-Based Capital 15,384 22.6 % N/A 5,454 8.0 % Tier 1 Leverage 15,357 7.2 % N/A 8,516 4.0 % Schwab Bank Common Equity Tier 1 Risk-Based Capital $ 11,878 19.8 % $ 3,894 6.5 % $ 2,696 4.5 % Tier 1 Risk-Based Capital 11,878 19.8 % 4,793 8.0 % 3,595 6.0 % Total Risk-Based Capital 11,904 19.9 % 5,992 10.0 % 4,793 8.0 % Tier 1 Leverage 11,878 7.0 % 8,456 5.0 % 6,765 4.0 % N/A Not Applicable. |
Net Capital and Net Capital Requirements for CS&Co | Net capital and net capital requirements for CS&Co are as follows: December 31, 2017 2016 Net capital $ 2,118 $ 1,846 Minimum net capital required 0.250 0.250 2% of aggregate debit balances 435 355 Net capital in excess of required net capital 1,683 1,491 |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Segment Reporting [Abstract] | |
Financial Information for Reportable Segments | Financial information for the segments is presented in the following table: Investor Services Advisor Services Total Year Ended December 31, 2017 2016 2015 2017 2016 2015 2017 2016 2015 Net Revenues: Net interest revenue $ 3,231 $ 2,591 $ 2,133 $ 1,051 $ 731 $ 392 $ 4,282 $ 3,322 $ 2,525 Asset management and administration fees 2,344 2,093 1,837 1,048 962 813 3,392 3,055 2,650 Trading revenue 408 524 556 246 301 310 654 825 866 Other 217 199 234 73 72 94 290 271 328 Provision for loan losses — 4 11 — 1 — — 5 11 Total net revenues 6,200 5,411 4,771 2,418 2,067 1,609 8,618 7,478 6,380 Expenses Excluding Interest 3,725 3,380 3,090 1,243 1,105 1,011 4,968 4,485 4,101 Income before taxes on income $ 2,475 $ 2,031 $ 1,681 $ 1,175 $ 962 $ 598 $ 3,650 $ 2,993 $ 2,279 Capital expenditures $ 265 $ 234 $ 195 $ 147 $ 119 $ 90 $ 412 $ 353 $ 285 Depreciation and amortization $ 203 $ 180 $ 171 $ 66 $ 54 $ 53 $ 269 $ 234 $ 224 |
The Charles Schwab Corporatio55
The Charles Schwab Corporation - Parent Company Only Financial Statements (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |
Condensed Statements of Income | Condensed Statements of Income Year Ended December 31, 2017 2016 2015 Interest revenue $ 33 $ 22 $ 12 Interest expense (114 ) (100 ) (86 ) Net interest expense (81 ) (78 ) (74 ) Other 3 1 4 Expenses excluding interest (32 ) (21 ) (27 ) Loss before income tax benefit and equity in net income of subsidiaries (110 ) (98 ) (97 ) Income tax benefit 27 34 41 Loss before equity in net income of subsidiaries (83 ) (64 ) (56 ) Equity in net income of subsidiaries: Equity in undistributed net income of subsidiaries 1,479 1,690 1,287 Dividends from bank subsidiary 625 — — Dividends from non-bank subsidiaries 333 263 216 Net Income 2,354 1,889 1,447 Preferred stock dividends and other (1) 174 143 83 Net Income Available to Common Stockholders $ 2,180 $ 1,746 $ 1,364 (1) Includes preferred stock dividends and undistributed earnings and dividends allocated to non-vested restricted stock units. |
Condensed Balance Sheets | Condensed Balance Sheets December 31, 2017 2016 Assets Cash and cash equivalents $ 2,825 $ 1,189 Receivables from subsidiaries 571 503 Available for sale securities 573 569 Held to maturity securities 223 223 Other securities owned — at fair value 76 75 Loans to non-bank subsidiaries 448 — Investment in non-bank subsidiaries 5,393 5,044 Investment in bank subsidiary 13,224 11,726 Other assets 160 124 Total assets $ 23,493 $ 19,453 Liabilities and Stockholders’ Equity Accrued expenses and other liabilities $ 276 $ 219 Payables to subsidiaries — 6 Long-term debt 4,692 2,807 Total liabilities 4,968 3,032 Stockholders’ equity 18,525 16,421 Total liabilities and stockholders’ equity $ 23,493 $ 19,453 |
Condensed Statements of Cash Flows | Condensed Statements of Cash Flows Year Ended December 31, 2017 2016 2015 Cash Flows from Operating Activities Net income $ 2,354 $ 1,889 $ 1,447 Adjustments to reconcile net income to net cash provided by operating activities: Equity in undistributed earnings of subsidiaries (1,479 ) (1,690 ) (1,287 ) Other 5 (37 ) (31 ) Net change in: Other securities owned (1 ) (10 ) 9 Other assets (26 ) (27 ) (32 ) Accrued expenses and other liabilities 44 30 4 Net cash provided by (used for) operating activities 897 155 110 Cash Flows from Investing Activities Due from (to) subsidiaries — net (374 ) 95 93 Increase in investments in subsidiaries (342 ) (1,547 ) (611 ) Repayments (Advances) of subordinated loan to CS&Co — 465 (150 ) Purchases of available for sale securities (201 ) (2 ) (842 ) Proceeds from sales of available for sale securities 197 2 200 Principal payments on available for sale securities — — 75 Purchases of held to maturity securities — — (223 ) Other investing activities (6 ) (4 ) — Net cash provided by (used for) investing activities (726 ) (991 ) (1,458 ) Cash Flows from Financing Activities Issuance of long-term debt 2,129 — 1,346 Repayment of long-term debt (250 ) — (350 ) Net proceeds from preferred stock offerings 492 1,316 581 Redemption of preferred stock (485 ) — — Dividends paid (592 ) (486 ) (387 ) Proceeds from stock options exercised and other 171 144 90 Other financing activities — 44 32 Net cash provided by (used for) financing activities 1,465 1,018 1,312 Increase (Decrease) in Cash and Cash Equivalents 1,636 182 (36 ) Cash and Cash Equivalents at Beginning of Year 1,189 1,007 1,043 Cash and Cash Equivalents at End of Year $ 2,825 $ 1,189 $ 1,007 |
Quarterly Financial Informati56
Quarterly Financial Information (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Quarterly Financial Information | Fourth Third Second First Year Ended December 31, 2017: Total Net Revenues $ 2,242 $ 2,165 $ 2,130 $ 2,081 Total Expenses Excluding Interest $ 1,289 $ 1,220 $ 1,221 $ 1,238 Net Income $ 597 $ 618 $ 575 $ 564 Net Income Available to Common Stockholders $ 550 $ 575 $ 530 $ 525 Weighted-Average Common Shares Outstanding — Basic 1,343 1,339 1,338 1,336 Weighted-Average Common Shares Outstanding — Diluted 1,358 1,353 1,351 1,351 Earnings Per Common Share — Basic $ .41 $ .43 $ .40 $ .39 Earnings Per Common Share — Diluted $ .41 $ .42 $ .39 $ .39 Dividends Declared Per Common Share $ .08 $ .08 $ .08 $ .08 Range of Common Stock Price Per Share: High $ 52.52 $ 44.35 $ 44.10 $ 43.65 Low $ 42.20 $ 38.06 $ 37.16 $ 37.62 Range of Price/Earnings Ratio (1) : High 33 28 30 31 Low 26 24 25 27 Year Ended December 31, 2016: Total Net Revenues $ 1,972 $ 1,914 $ 1,828 $ 1,764 Total Expenses Excluding Interest $ 1,148 $ 1,120 $ 1,108 $ 1,109 Net Income $ 522 $ 503 $ 452 $ 412 Net Income Available to Common Stockholders $ 478 $ 470 $ 406 $ 392 Weighted-Average Common Shares Outstanding — Basic 1,329 1,324 1,322 1,321 Weighted-Average Common Shares Outstanding — Diluted 1,341 1,334 1,333 1,330 Earnings Per Common Share — Basic $ .36 $ .36 $ .31 $ .30 Earnings Per Common Share — Diluted $ .36 $ .35 $ .30 $ .29 Dividends Declared Per Common Share $ .07 $ .07 $ .07 $ .06 Range of Common Stock Price Per Share: High $ 40.58 $ 31.87 $ 31.07 $ 32.23 Low $ 30.66 $ 23.83 $ 24.02 $ 21.51 Range of Price/Earnings Ratio (1) : High 31 26 27 29 Low 24 20 21 20 (1) Price/earnings ratio is computed by dividing the high and low market prices by diluted earnings per common share for the preceding 12-month period ending on the last day of the quarter presented. |
Introduction and Basis of Pre57
Introduction and Basis of Presentation (Details) | Dec. 31, 2017stateoffice |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Minimum number of domestic branch offices | office | 345 |
States with domestic branch offices | state | 46 |
Summary of Significant Accoun58
Summary of Significant Accounting Policies (Details) - USD ($) $ in Millions | 12 Months Ended | ||||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Jan. 01, 2018 | ||
Summary of Significant Accounting Policies [Line Items] | |||||
Income tax benefit | [1] | $ (1,296) | $ (1,104) | $ (832) | |
Accounting Standards Update 2016-09 [Member] | |||||
Summary of Significant Accounting Policies [Line Items] | |||||
Income tax benefit | $ 87 | ||||
Accounting Standards Update 2014-09 [Member] | Subsequent Event [Member] | |||||
Summary of Significant Accounting Policies [Line Items] | |||||
Capitalized costs | $ 219 | ||||
Deferred tax liability | $ 51 | ||||
Furniture and equipment [Member] | Minimum [Member] | |||||
Summary of Significant Accounting Policies [Line Items] | |||||
Estimated useful life, property, plant and equipment | 5 years | ||||
Furniture and equipment [Member] | Maximum [Member] | |||||
Summary of Significant Accounting Policies [Line Items] | |||||
Estimated useful life, property, plant and equipment | 10 years | ||||
Buildings [Member] | Minimum [Member] | |||||
Summary of Significant Accounting Policies [Line Items] | |||||
Estimated useful life, property, plant and equipment | 20 years | ||||
Buildings [Member] | Maximum [Member] | |||||
Summary of Significant Accounting Policies [Line Items] | |||||
Estimated useful life, property, plant and equipment | 40 years | ||||
Software [Member] | Minimum [Member] | |||||
Summary of Significant Accounting Policies [Line Items] | |||||
Estimated useful life, Software and certain costs incurred for purchasing or developing software | 3 years | ||||
Software [Member] | Maximum [Member] | |||||
Summary of Significant Accounting Policies [Line Items] | |||||
Estimated useful life, Software and certain costs incurred for purchasing or developing software | 5 years | ||||
[1] | Includes the prospective adoption of ASU 2016-09 in 2017. See New Accounting Standards in Note 2 for additional information. Taxes on income were increased by approximately $46 million in December 2017 due to the enactment of the Tax Cuts and Jobs Act legislation resulting in the remeasurement of deferred tax assets and other tax adjustments. |
Receivables from and Payables59
Receivables from and Payables to Brokerage Clients (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Receivables [Abstract] | ||
Margin loans, net of allowance for doubtful accounts | $ 18,331 | $ 15,257 |
Other brokerage receivables | 2,245 | 1,898 |
Receivables from brokerage clients — net | 20,576 | 17,155 |
Payables | ||
Interest-bearing payables | 22,840 | 28,336 |
Non-interest-bearing payables | 8,403 | 7,558 |
Payables to brokerage clients | $ 31,243 | $ 35,894 |
California [Member] | Geographic Concentration Risk [Member] | Contract with Customer [Member] | ||
Concentration Risk [Line Items] | ||
Percent of client accounts | 22.00% | 23.00% |
Other Securities Owned (Summary
Other Securities Owned (Summary of Other Securities Owned) (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Other Securities Owned [Line Items] | ||
Other securities owned | $ 539 | $ 449 |
Equity and bond mutual funds [Member] | ||
Other Securities Owned [Line Items] | ||
Other securities owned | 318 | 272 |
Schwab Funds money market funds [Member] | ||
Other Securities Owned [Line Items] | ||
Other securities owned | 135 | 108 |
State and municipal debt obligations [Member] | ||
Other Securities Owned [Line Items] | ||
Other securities owned | 52 | 41 |
Equity, U.S. Government and corporate debt, and other securities [Member] | ||
Other Securities Owned [Line Items] | ||
Other securities owned | $ 34 | $ 28 |
Investment Securities (Amortize
Investment Securities (Amortized Cost, Gross Unrealized Gains and Losses, and Fair Value of Securities Available for Sale and Held to Maturity Securities) (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Available for sale securities: | ||
Amortized Cost | $ 50,029 | $ 77,627 |
Gross Unrealized Gains | 105 | 176 |
Gross Unrealized Losses | 139 | 438 |
Fair Value | 49,995 | 77,365 |
Held to maturity securities: | ||
Amortized Cost | 120,926 | 75,203 |
Gross Unrealized Gains | 497 | 336 |
Gross Unrealized Losses | 1,050 | 1,095 |
Fair Value | 120,373 | 74,444 |
U.S. agency mortgage-backed securities [Member] | ||
Available for sale securities: | ||
Amortized Cost | 20,915 | 33,167 |
Gross Unrealized Gains | 53 | 120 |
Gross Unrealized Losses | 39 | 92 |
Fair Value | 20,929 | 33,195 |
Held to maturity securities: | ||
Amortized Cost | 101,197 | 72,439 |
Gross Unrealized Gains | 290 | 324 |
Gross Unrealized Losses | 1,034 | 1,086 |
Fair Value | 100,453 | 71,677 |
U.S. Treasury securities [Member] | ||
Available for sale securities: | ||
Amortized Cost | 9,583 | 8,679 |
Gross Unrealized Gains | 0 | 3 |
Gross Unrealized Losses | 83 | 59 |
Fair Value | 9,500 | 8,623 |
Held to maturity securities: | ||
Amortized Cost | 223 | 223 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 3 | 4 |
Fair Value | 220 | 219 |
Asset-backed securities [Member] | ||
Available for sale securities: | ||
Amortized Cost | 9,019 | 20,520 |
Gross Unrealized Gains | 34 | 29 |
Gross Unrealized Losses | 6 | 214 |
Fair Value | 9,047 | 20,335 |
Held to maturity securities: | ||
Amortized Cost | 12,937 | 941 |
Gross Unrealized Gains | 127 | 0 |
Gross Unrealized Losses | 2 | 0 |
Fair Value | 13,062 | 941 |
Corporate debt securities [Member] | ||
Available for sale securities: | ||
Amortized Cost | 6,154 | 9,850 |
Gross Unrealized Gains | 16 | 20 |
Gross Unrealized Losses | 1 | 18 |
Fair Value | 6,169 | 9,852 |
Held to maturity securities: | ||
Amortized Cost | 4,078 | 436 |
Gross Unrealized Gains | 13 | 0 |
Gross Unrealized Losses | 5 | 0 |
Fair Value | $ 4,086 | $ 436 |
Available for sale and held to maturity securities | 41.00% | 49.00% |
Certificates of deposit [Member] | ||
Available for sale securities: | ||
Amortized Cost | $ 2,040 | $ 2,070 |
Gross Unrealized Gains | 2 | 2 |
Gross Unrealized Losses | 1 | 1 |
Fair Value | 2,041 | 2,071 |
Held to maturity securities: | ||
Amortized Cost | 200 | |
Gross Unrealized Gains | 0 | |
Gross Unrealized Losses | 0 | |
Fair Value | 200 | |
U.S. agency notes [Member] | ||
Available for sale securities: | ||
Amortized Cost | 1,914 | 1,915 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 8 | 8 |
Fair Value | 1,906 | 1,907 |
Commercial paper [Member] | ||
Available for sale securities: | ||
Amortized Cost | 313 | 214 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 0 | 0 |
Fair Value | 313 | 214 |
Held to maturity securities: | ||
Amortized Cost | 99 | |
Gross Unrealized Gains | 0 | |
Gross Unrealized Losses | 0 | |
Fair Value | 99 | |
U.S. state and municipal securities [Member] | ||
Available for sale securities: | ||
Amortized Cost | 1,167 | |
Gross Unrealized Gains | 2 | |
Gross Unrealized Losses | 46 | |
Fair Value | 1,123 | |
Held to maturity securities: | ||
Amortized Cost | 1,247 | 68 |
Gross Unrealized Gains | 57 | 1 |
Gross Unrealized Losses | 0 | 1 |
Fair Value | 1,304 | 68 |
Non-agency commercial mortgage-backed securities [Member] | ||
Available for sale securities: | ||
Amortized Cost | 40 | 45 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 0 | 0 |
Fair Value | 40 | 45 |
Held to maturity securities: | ||
Amortized Cost | 994 | 997 |
Gross Unrealized Gains | 10 | 11 |
Gross Unrealized Losses | 5 | 4 |
Fair Value | 999 | $ 1,004 |
Foreign government agency securities [Member] | ||
Available for sale securities: | ||
Amortized Cost | 51 | |
Gross Unrealized Gains | 0 | |
Gross Unrealized Losses | 1 | |
Fair Value | 50 | |
Held to maturity securities: | ||
Amortized Cost | 50 | |
Gross Unrealized Gains | 0 | |
Gross Unrealized Losses | 1 | |
Fair Value | $ 49 | |
Federal Family Education Loan Program Asset-Backed Securities [Member] | ||
Held to maturity securities: | ||
Asset-backed securities percent | 42.00% | 47.00% |
Collateralized Credit Card Securities [Member] | ||
Held to maturity securities: | ||
Asset-backed securities percent | 40.00% | 36.00% |
Corporate Debt Securities, Information Technology [Member] | ||
Held to maturity securities: | ||
Available for sale and held to maturity securities | 22.00% | 19.00% |
Investment Securities (Narrativ
Investment Securities (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2016 | |
Schedule of Held-to-maturity Securities [Line Items] | |||
Debt securities transferred from AFS to HTM | $ 24,700 | ||
Unrealized loss | 227 | ||
Assets | 243,274 | $ 223,383 | |
Trust Deposits [Member] | |||
Schedule of Held-to-maturity Securities [Line Items] | |||
Fair value of pledged securities | 923 | ||
FHLB [Member] | |||
Schedule of Held-to-maturity Securities [Line Items] | |||
Fair value of pledged securities | 24,200 | ||
Federal Reserve Bank [Member] | |||
Schedule of Held-to-maturity Securities [Line Items] | |||
Fair value of pledged securities | $ 2,500 | ||
Scenario, Forecast [Member] | |||
Schedule of Held-to-maturity Securities [Line Items] | |||
Assets | $ 250,000 |
Investment Securities (Availabl
Investment Securities (Available For Sale and Held to Maturity Securities with Unrealized Losses, Aggregated by Category and Period of Continuous Unrealized Loss) (Details) $ in Millions | Dec. 31, 2017USD ($)security | Dec. 31, 2016USD ($)security |
Available for sale securities: | ||
Less than 12 months Fair Value | $ 12,909 | $ 29,156 |
Less than 12 months Unrealized Losses | 38 | 212 |
12 months or longer Fair Value | 9,774 | 12,921 |
12 months or longer Unrealized Losses | 101 | 226 |
Total Fair Value | 22,683 | 42,077 |
Total Unrealized Losses | 139 | 438 |
Held to maturity securities: | ||
Less than 12 months Fair Value | 45,180 | 52,185 |
Less than 12 months Unrealized Losses | 326 | 1,095 |
12 months or longer Fair Value | 24,825 | 0 |
12 months or longer Unrealized Losses | 724 | 0 |
Total Fair Value | 70,005 | 52,185 |
Total Unrealized Losses | 1,050 | 1,095 |
Total securities with unrealized losses | ||
Less than 12 months Fair Value | 58,089 | 81,341 |
Less than 12 months Unrealized Losses | 364 | 1,307 |
12 months or longer Fair Value | 34,599 | 12,921 |
12 months or longer Unrealized Losses | 825 | 226 |
Total Fair Value | 92,688 | 94,262 |
Total Unrealized Losses | $ 1,189 | $ 1,533 |
Number of available for sale securities in unrealized loss positions | security | 251 | 627 |
Number of held to maturity securities in unrealized loss positions | security | 938 | 612 |
U.S. agency mortgage-backed securities [Member] | ||
Available for sale securities: | ||
Less than 12 months Fair Value | $ 5,696 | $ 14,816 |
Less than 12 months Unrealized Losses | 21 | 69 |
12 months or longer Fair Value | 2,548 | 2,931 |
12 months or longer Unrealized Losses | 18 | 23 |
Total Fair Value | 8,244 | 17,747 |
Total Unrealized Losses | 39 | 92 |
Held to maturity securities: | ||
Less than 12 months Fair Value | 42,102 | 51,361 |
Less than 12 months Unrealized Losses | 310 | 1,086 |
12 months or longer Fair Value | 24,753 | 0 |
12 months or longer Unrealized Losses | 724 | 0 |
Total Fair Value | 66,855 | 51,361 |
Total Unrealized Losses | 1,034 | 1,086 |
Non-agency commercial mortgage-backed securities [Member] | ||
Held to maturity securities: | ||
Less than 12 months Fair Value | 607 | 591 |
Less than 12 months Unrealized Losses | 5 | 4 |
12 months or longer Fair Value | 0 | 0 |
12 months or longer Unrealized Losses | 0 | 0 |
Total Fair Value | 607 | 591 |
Total Unrealized Losses | 5 | 4 |
Asset-backed securities [Member] | ||
Available for sale securities: | ||
Less than 12 months Fair Value | 904 | 1,670 |
Less than 12 months Unrealized Losses | 3 | 13 |
12 months or longer Fair Value | 424 | 9,237 |
12 months or longer Unrealized Losses | 3 | 201 |
Total Fair Value | 1,328 | 10,907 |
Total Unrealized Losses | 6 | 214 |
Held to maturity securities: | ||
Less than 12 months Fair Value | 1,124 | |
Less than 12 months Unrealized Losses | 2 | |
12 months or longer Fair Value | 72 | |
12 months or longer Unrealized Losses | 0 | |
Total Fair Value | 1,196 | |
Total Unrealized Losses | 2 | |
Corporate debt securities [Member] | ||
Available for sale securities: | ||
Less than 12 months Fair Value | 736 | 2,407 |
Less than 12 months Unrealized Losses | 1 | 17 |
12 months or longer Fair Value | 120 | 653 |
12 months or longer Unrealized Losses | 0 | 1 |
Total Fair Value | 856 | 3,060 |
Total Unrealized Losses | 1 | 18 |
Held to maturity securities: | ||
Less than 12 months Fair Value | 1,078 | |
Less than 12 months Unrealized Losses | 5 | |
12 months or longer Fair Value | 0 | |
12 months or longer Unrealized Losses | 0 | |
Total Fair Value | 1,078 | |
Total Unrealized Losses | 5 | |
U.S. Treasury securities [Member] | ||
Available for sale securities: | ||
Less than 12 months Fair Value | 4,625 | 6,926 |
Less than 12 months Unrealized Losses | 11 | 59 |
12 months or longer Fair Value | 4,875 | 0 |
12 months or longer Unrealized Losses | 72 | 0 |
Total Fair Value | 9,500 | 6,926 |
Total Unrealized Losses | 83 | 59 |
Held to maturity securities: | ||
Less than 12 months Fair Value | 220 | 219 |
Less than 12 months Unrealized Losses | 3 | 4 |
12 months or longer Fair Value | 0 | 0 |
12 months or longer Unrealized Losses | 0 | 0 |
Total Fair Value | 220 | 219 |
Total Unrealized Losses | 3 | 4 |
Certificates of deposit [Member] | ||
Available for sale securities: | ||
Less than 12 months Fair Value | 799 | 474 |
Less than 12 months Unrealized Losses | 1 | 0 |
12 months or longer Fair Value | 0 | 100 |
12 months or longer Unrealized Losses | 0 | 1 |
Total Fair Value | 799 | 574 |
Total Unrealized Losses | 1 | 1 |
U.S. agency notes [Member] | ||
Available for sale securities: | ||
Less than 12 months Fair Value | 99 | 1,907 |
Less than 12 months Unrealized Losses | 0 | 8 |
12 months or longer Fair Value | 1,807 | 0 |
12 months or longer Unrealized Losses | 8 | 0 |
Total Fair Value | 1,906 | 1,907 |
Total Unrealized Losses | 8 | 8 |
Foreign government agency securities [Member] | ||
Available for sale securities: | ||
Less than 12 months Fair Value | 50 | |
Less than 12 months Unrealized Losses | 1 | |
12 months or longer Fair Value | 0 | |
12 months or longer Unrealized Losses | 0 | |
Total Fair Value | 50 | |
Total Unrealized Losses | 1 | |
Held to maturity securities: | ||
Less than 12 months Fair Value | 49 | |
Less than 12 months Unrealized Losses | 1 | |
12 months or longer Fair Value | 0 | |
12 months or longer Unrealized Losses | 0 | |
Total Fair Value | 49 | |
Total Unrealized Losses | $ 1 | |
U.S. state and municipal securities [Member] | ||
Available for sale securities: | ||
Less than 12 months Fair Value | 956 | |
Less than 12 months Unrealized Losses | 46 | |
12 months or longer Fair Value | 0 | |
12 months or longer Unrealized Losses | 0 | |
Total Fair Value | 956 | |
Total Unrealized Losses | 46 | |
Held to maturity securities: | ||
Less than 12 months Fair Value | 14 | |
Less than 12 months Unrealized Losses | 1 | |
12 months or longer Fair Value | 0 | |
12 months or longer Unrealized Losses | 0 | |
Total Fair Value | 14 | |
Total Unrealized Losses | $ 1 |
Investment Securities (Maturiti
Investment Securities (Maturities of Securities Available for Sale and Held to Maturity) (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Available for sale securities, fair value | ||
Within 1 year | $ 8,508 | |
After 1 year through 5 years | 20,960 | |
After 5 years through 10 years | 9,543 | |
After 10 years | 10,984 | |
Fair Value | 49,995 | $ 77,365 |
Available for sale securities, amortized cost | ||
Within 1 year | 8,517 | |
After 1 year through 5 years | 20,999 | |
After 5 years through 10 years | 9,546 | |
After 10 years | 10,967 | |
Amortized Cost | $ 50,029 | 77,627 |
Weighted-average yield | ||
Within 1 year | 1.53% | |
After 1 year through 5 years | 1.63% | |
After 5 years through 10 years | 1.72% | |
After 10 years | 1.79% | |
Total | 1.66% | |
Held to maturity securities, fair value | ||
Within 1 year | $ 792 | |
After 1 year through 5 years | 17,500 | |
After 5 years through 10 years | 36,551 | |
After 10 years | 65,530 | |
Fair Value | 120,373 | 74,444 |
Held to maturity securities, amortized cost | ||
Within 1 year | 792 | |
After 1 year through 5 years | 17,486 | |
After 5 years through 10 years | 36,544 | |
After 10 years | 66,104 | |
Amortized Cost | $ 120,926 | 75,203 |
Weighted-average yield | ||
Within 1 year | 1.97% | |
After 1 year through 5 years | 2.45% | |
After 5 years through 10 years | 2.35% | |
After 10 years | 2.16% | |
Total | 2.26% | |
U.S. agency mortgage-backed securities [Member] | ||
Available for sale securities, fair value | ||
Within 1 year | $ 61 | |
After 1 year through 5 years | 2,253 | |
After 5 years through 10 years | 8,282 | |
After 10 years | 10,333 | |
Fair Value | 20,929 | 33,195 |
Available for sale securities, amortized cost | ||
Amortized Cost | 20,915 | 33,167 |
Held to maturity securities, fair value | ||
Within 1 year | 441 | |
After 1 year through 5 years | 12,680 | |
After 5 years through 10 years | 29,511 | |
After 10 years | 57,821 | |
Fair Value | 100,453 | 71,677 |
Held to maturity securities, amortized cost | ||
Amortized Cost | 101,197 | 72,439 |
Asset-backed securities [Member] | ||
Available for sale securities, fair value | ||
Within 1 year | 251 | |
After 1 year through 5 years | 6,924 | |
After 5 years through 10 years | 1,261 | |
After 10 years | 611 | |
Fair Value | 9,047 | 20,335 |
Available for sale securities, amortized cost | ||
Amortized Cost | 9,019 | 20,520 |
Held to maturity securities, fair value | ||
Within 1 year | 0 | |
After 1 year through 5 years | 1,003 | |
After 5 years through 10 years | 6,245 | |
After 10 years | 5,814 | |
Fair Value | 13,062 | 941 |
Held to maturity securities, amortized cost | ||
Amortized Cost | 12,937 | 941 |
Corporate debt securities [Member] | ||
Available for sale securities, fair value | ||
Within 1 year | 3,135 | |
After 1 year through 5 years | 3,034 | |
After 5 years through 10 years | 0 | |
After 10 years | 0 | |
Fair Value | 6,169 | 9,852 |
Available for sale securities, amortized cost | ||
Amortized Cost | 6,154 | 9,850 |
Held to maturity securities, fair value | ||
Within 1 year | 351 | |
After 1 year through 5 years | 3,206 | |
After 5 years through 10 years | 454 | |
After 10 years | 75 | |
Fair Value | 4,086 | 436 |
Held to maturity securities, amortized cost | ||
Amortized Cost | 4,078 | 436 |
U.S. Treasury securities [Member] | ||
Available for sale securities, fair value | ||
Within 1 year | 2,515 | |
After 1 year through 5 years | 6,985 | |
After 5 years through 10 years | 0 | |
After 10 years | 0 | |
Fair Value | 9,500 | 8,623 |
Available for sale securities, amortized cost | ||
Amortized Cost | 9,583 | 8,679 |
Held to maturity securities, fair value | ||
Within 1 year | 0 | |
After 1 year through 5 years | 0 | |
After 5 years through 10 years | 220 | |
After 10 years | 0 | |
Fair Value | 220 | 219 |
Held to maturity securities, amortized cost | ||
Amortized Cost | 223 | 223 |
Certificates of deposit [Member] | ||
Available for sale securities, fair value | ||
Within 1 year | 575 | |
After 1 year through 5 years | 1,466 | |
After 5 years through 10 years | 0 | |
After 10 years | 0 | |
Fair Value | 2,041 | 2,071 |
Available for sale securities, amortized cost | ||
Amortized Cost | 2,040 | 2,070 |
Held to maturity securities, fair value | ||
Within 1 year | 0 | |
After 1 year through 5 years | 200 | |
After 5 years through 10 years | 0 | |
After 10 years | 0 | |
Fair Value | 200 | |
Held to maturity securities, amortized cost | ||
Amortized Cost | 200 | |
U.S. agency notes [Member] | ||
Available for sale securities, fair value | ||
Within 1 year | 1,658 | |
After 1 year through 5 years | 248 | |
After 5 years through 10 years | 0 | |
After 10 years | 0 | |
Fair Value | 1,906 | 1,907 |
Available for sale securities, amortized cost | ||
Amortized Cost | 1,914 | 1,915 |
U.S. state and municipal securities [Member] | ||
Available for sale securities, fair value | ||
Fair Value | 1,123 | |
Available for sale securities, amortized cost | ||
Amortized Cost | 1,167 | |
Held to maturity securities, fair value | ||
Within 1 year | 0 | |
After 1 year through 5 years | 0 | |
After 5 years through 10 years | 121 | |
After 10 years | 1,183 | |
Fair Value | 1,304 | 68 |
Held to maturity securities, amortized cost | ||
Amortized Cost | 1,247 | 68 |
Commercial paper [Member] | ||
Available for sale securities, fair value | ||
Within 1 year | 313 | |
After 1 year through 5 years | 0 | |
After 5 years through 10 years | 0 | |
After 10 years | 0 | |
Fair Value | 313 | 214 |
Available for sale securities, amortized cost | ||
Amortized Cost | 313 | 214 |
Held to maturity securities, fair value | ||
Fair Value | 99 | |
Held to maturity securities, amortized cost | ||
Amortized Cost | 99 | |
Non-agency commercial mortgage-backed securities [Member] | ||
Available for sale securities, fair value | ||
Within 1 year | 0 | |
After 1 year through 5 years | 0 | |
After 5 years through 10 years | 0 | |
After 10 years | 40 | |
Fair Value | 40 | 45 |
Available for sale securities, amortized cost | ||
Amortized Cost | 40 | 45 |
Held to maturity securities, fair value | ||
Within 1 year | 0 | |
After 1 year through 5 years | 362 | |
After 5 years through 10 years | 0 | |
After 10 years | 637 | |
Fair Value | 999 | 1,004 |
Held to maturity securities, amortized cost | ||
Amortized Cost | 994 | $ 997 |
Foreign government agency securities [Member] | ||
Available for sale securities, fair value | ||
Within 1 year | 0 | |
After 1 year through 5 years | 50 | |
After 5 years through 10 years | 0 | |
After 10 years | 0 | |
Fair Value | 50 | |
Available for sale securities, amortized cost | ||
Amortized Cost | 51 | |
Held to maturity securities, fair value | ||
Within 1 year | 0 | |
After 1 year through 5 years | 49 | |
After 5 years through 10 years | 0 | |
After 10 years | 0 | |
Fair Value | 49 | |
Held to maturity securities, amortized cost | ||
Amortized Cost | $ 50 |
Investment Securities (Proceeds
Investment Securities (Proceeds and Gross Realized Gains And Losses from Sales of Securities Available for Sale) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Investments, Debt and Equity Securities [Abstract] | |||
Proceeds | $ 8,617 | $ 5,537 | $ 2,424 |
Gross realized gains | 12 | 4 | 1 |
Gross realized losses | $ 0 | $ 0 | $ 1 |
Bank Loans and Related Allowa66
Bank Loans and Related Allowance for Loan Losses (Composition of Bank Loans and Delinquency Analysis by Loan Segment) (Details) - USD ($) | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Current | $ 16,448,000,000 | $ 15,376,000,000 | ||
Past due and other nonaccrual loans | 56,000,000 | 53,000,000 | ||
Total loans | 16,504,000,000 | 15,429,000,000 | ||
Allowance for loan losses | 26,000,000 | 26,000,000 | $ 31,000,000 | $ 42,000,000 |
Total bank loans - net | 16,478,000,000 | 15,403,000,000 | ||
Loans accruing interest contractually 90 days or more past due | 0 | 0 | ||
30-59 Days Past Due [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Past due and other nonaccrual loans | 18,000,000 | 21,000,000 | ||
60-89 Days Past Due [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Past due and other nonaccrual loans | 9,000,000 | 6,000,000 | ||
>90 Days Past Due And Other Nonaccrual Loans [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Past due and other nonaccrual loans | 29,000,000 | 26,000,000 | ||
First Mortgage [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Current | 9,983,000,000 | 9,100,000,000 | ||
Past due and other nonaccrual loans | 33,000,000 | 34,000,000 | ||
Total loans | 10,016,000,000 | 9,134,000,000 | ||
Allowance for loan losses | 16,000,000 | 17,000,000 | 20,000,000 | 29,000,000 |
Total bank loans - net | 10,000,000,000 | 9,117,000,000 | ||
First Mortgage [Member] | 30-59 Days Past Due [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Past due and other nonaccrual loans | 14,000,000 | 15,000,000 | ||
First Mortgage [Member] | 60-89 Days Past Due [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Past due and other nonaccrual loans | 2,000,000 | 3,000,000 | ||
First Mortgage [Member] | >90 Days Past Due And Other Nonaccrual Loans [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Past due and other nonaccrual loans | 17,000,000 | 16,000,000 | ||
HELOC's [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Current | 1,928,000,000 | 2,336,000,000 | ||
Past due and other nonaccrual loans | 15,000,000 | 14,000,000 | ||
Total loans | 1,943,000,000 | 2,350,000,000 | ||
Allowance for loan losses | 8,000,000 | 8,000,000 | 11,000,000 | $ 13,000,000 |
Total bank loans - net | 1,935,000,000 | 2,342,000,000 | ||
HELOC's [Member] | 30-59 Days Past Due [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Past due and other nonaccrual loans | 0 | 2,000,000 | ||
HELOC's [Member] | 60-89 Days Past Due [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Past due and other nonaccrual loans | 3,000,000 | 2,000,000 | ||
HELOC's [Member] | >90 Days Past Due And Other Nonaccrual Loans [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Past due and other nonaccrual loans | 12,000,000 | 10,000,000 | ||
Pledged asset lines [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Current | 4,361,000,000 | 3,846,000,000 | ||
Past due and other nonaccrual loans | 8,000,000 | 5,000,000 | ||
Total loans | 4,369,000,000 | 3,851,000,000 | ||
Allowance for loan losses | 0 | 0 | ||
Total bank loans - net | 4,369,000,000 | 3,851,000,000 | ||
Pledged asset lines [Member] | 30-59 Days Past Due [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Past due and other nonaccrual loans | 4,000,000 | 4,000,000 | ||
Pledged asset lines [Member] | 60-89 Days Past Due [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Past due and other nonaccrual loans | 4,000,000 | 1,000,000 | ||
Pledged asset lines [Member] | >90 Days Past Due And Other Nonaccrual Loans [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Past due and other nonaccrual loans | 0 | 0 | ||
Other [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Current | 176,000,000 | 94,000,000 | ||
Past due and other nonaccrual loans | 0 | 0 | ||
Total loans | 176,000,000 | 94,000,000 | ||
Allowance for loan losses | 2,000,000 | 1,000,000 | $ 0 | |
Total bank loans - net | 174,000,000 | 93,000,000 | ||
Other [Member] | 30-59 Days Past Due [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Past due and other nonaccrual loans | 0 | 0 | ||
Other [Member] | 60-89 Days Past Due [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Past due and other nonaccrual loans | 0 | 0 | ||
Other [Member] | >90 Days Past Due And Other Nonaccrual Loans [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Past due and other nonaccrual loans | 0 | 0 | ||
First Mortgage And Home Equity [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Unamortized premiums and discounts and direct origination costs | $ 77,000,000 | $ 78,000,000 | ||
First Mortgage And Home Equity [Member] | California [Member] | Loans Geographic Area [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Concentration risk percentage | 48.00% | 48.00% |
Bank Loans and Related Allowa67
Bank Loans and Related Allowance for Loan Losses (Narrative) (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans accruing interest contractually 90 days or more past due | $ 0 | $ 0 |
Balance | 16,504,000,000 | 15,429,000,000 |
First Mortgage [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Balance | $ 10,016,000,000 | 9,134,000,000 |
HELOC's [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing Receivable, Loan Term | 30 years | |
Financing Receivable, Initial Draw Period | 10 years | |
Financing Receivable, Convert to Amortizing Loans, Period | 20 years | |
Balance | $ 1,943,000,000 | 2,350,000,000 |
Percent of loan balance outstanding, borrowers paid only minimum interest due | 38.00% | |
Home Equity Secured By Second Liens [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Balance | $ 1,500,000,000 | |
First Mortgage and Home Equity Loans and Lines of Credit [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Unamortized premiums and discounts and direct origination costs | 77,000,000 | $ 78,000,000 |
Loans pledged as collateral | 11,100,000,000 | |
Adjustable Rate First Mortgage [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Carrying amount of mortgages | $ 9,000,000,000 | |
Percent of loans with interest-only payments | 33.00% | |
Percent of interest only adjustable rate | 58.00% | |
Adjustable Rate First Mortgage [Member] | Minimum [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Fixed rate interest rate period | 3 years | |
Interest-only reset period | 3 years | |
Adjustable Rate First Mortgage [Member] | Maximum [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Fixed rate interest rate period | 10 years |
Bank Loans and Related Allowa68
Bank Loans and Related Allowance for Loan Losses (Changes in Allowance for Loan Losses) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Allowance for Loan and Lease Losses [Roll Forward] | |||
Balance at beginning of year | $ 26 | $ 31 | $ 42 |
Charge-offs | (3) | (2) | (3) |
Recoveries | 3 | 2 | 3 |
Provision for loan losses | 0 | (5) | (11) |
Balance at end of year | 26 | 26 | 31 |
First Mortgage [Member] | |||
Allowance for Loan and Lease Losses [Roll Forward] | |||
Balance at beginning of year | 17 | 20 | 29 |
Charge-offs | (2) | (1) | (1) |
Recoveries | 1 | 1 | 1 |
Provision for loan losses | 0 | (3) | (9) |
Balance at end of year | 16 | 17 | 20 |
HELOC's [Member] | |||
Allowance for Loan and Lease Losses [Roll Forward] | |||
Balance at beginning of year | 8 | 11 | 13 |
Charge-offs | (1) | (1) | (2) |
Recoveries | 1 | 1 | 2 |
Provision for loan losses | 0 | (3) | (2) |
Balance at end of year | 8 | 8 | 11 |
Other [Member] | |||
Allowance for Loan and Lease Losses [Roll Forward] | |||
Balance at beginning of year | 1 | 0 | |
Charge-offs | 0 | 0 | |
Recoveries | 1 | 0 | |
Provision for loan losses | 0 | 1 | |
Balance at end of year | $ 2 | $ 1 | $ 0 |
Bank Loans and Related Allowa69
Bank Loans and Related Allowance for Loan Losses (Impaired Assets) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Troubled debt restructurings | $ 11 | $ 14 |
Impaired bank loan related assets | 42 | 45 |
Nonperforming Financial Instruments [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total nonperforming assets | 31 | 31 |
Nonperforming Financial Instruments [Member] | Nonaccrual Loans [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total nonperforming assets | 28 | 26 |
Nonperforming Financial Instruments [Member] | Other Real Estate Owned [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total nonperforming assets | $ 3 | $ 5 |
Bank Loans and Related Allowa70
Bank Loans and Related Allowance for Loan Losses (Credit Quality Indicators of Bank Loan Portfolio) (Details) $ in Millions | Dec. 31, 2017USD ($)credit_rating | Dec. 31, 2016USD ($)credit_rating |
Financing Receivable, Recorded Investment [Line Items] | ||
Balance | $ 16,504 | $ 15,429 |
First Mortgage [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Balance | $ 10,016 | $ 9,134 |
Weighted Average Updated FICO | credit_rating | 775 | 773 |
Percent of Loans that are on Nonaccrual Status | 0.14% | 0.10% |
First Mortgage [Member] | Origination FICO Score Below 620 [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Balance | $ 6 | $ 8 |
First Mortgage [Member] | Origination FICO Score 620 Through 679 [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Balance | 89 | 92 |
First Mortgage [Member] | Origination FICO Score 680 Through 739 [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Balance | 1,569 | 1,427 |
First Mortgage [Member] | Origination FICO Score 740 And Above [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Balance | 8,352 | 7,607 |
First Mortgage [Member] | Year of origination Pre 2013 [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Balance | 1,478 | 2,136 |
First Mortgage [Member] | Year of origination 2013 [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Balance | 1,326 | 1,746 |
First Mortgage [Member] | Year of origination 2014 [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Balance | 530 | 685 |
First Mortgage [Member] | Year of origination 2015 [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Balance | 1,218 | 1,458 |
First Mortgage [Member] | Year of origination 2016 [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Balance | 2,886 | 3,109 |
First Mortgage [Member] | Year of origination 2017 [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Balance | 2,578 | |
First Mortgage [Member] | Estimated Current LTV 70% And Below [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Balance | $ 9,046 | $ 8,350 |
Weighted Average Updated FICO | credit_rating | 775 | 774 |
Percent of Loans that are on Nonaccrual Status | 0.09% | 0.04% |
First Mortgage [Member] | Estimated Current LTV Greater Than 70% through 90% [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Balance | $ 961 | $ 743 |
Weighted Average Updated FICO | credit_rating | 769 | 768 |
Percent of Loans that are on Nonaccrual Status | 0.46% | 0.35% |
First Mortgage [Member] | Estimated Current LTV Greater Than 90% through 100% [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Balance | $ 5 | $ 21 |
Weighted Average Updated FICO | credit_rating | 714 | 747 |
Percent of Loans that are on Nonaccrual Status | 10.49% | 2.08% |
First Mortgage [Member] | Estimated Current LTV Greater Than 100% [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Balance | $ 4 | $ 20 |
Weighted Average Updated FICO | credit_rating | 713 | 709 |
Percent of Loans that are on Nonaccrual Status | 6.23% | 14.50% |
First Mortgage [Member] | Origination Loan To Value Ratio 70% And Below [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Balance | $ 7,569 | $ 6,865 |
First Mortgage [Member] | Origination Loan to Value Ratio Greater Than 70% Through 90% [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Balance | 2,441 | 2,260 |
First Mortgage [Member] | Origination Loan to Value Ratio Greater Than 90% Through 100% [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Balance | 6 | 9 |
HELOC's [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Balance | $ 1,943 | $ 2,350 |
Weighted Average Updated FICO | credit_rating | 770 | 769 |
Utilization Rate | 33.00% | 36.00% |
Percent of Loans that are on Nonaccrual Status | 0.27% | 0.20% |
HELOC's [Member] | Origination FICO Score Below 620 [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Balance | $ 1 | $ 0 |
HELOC's [Member] | Origination FICO Score 620 Through 679 [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Balance | 10 | 13 |
HELOC's [Member] | Origination FICO Score 680 Through 739 [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Balance | 365 | 432 |
HELOC's [Member] | Origination FICO Score 740 And Above [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Balance | 1,567 | 1,905 |
HELOC's [Member] | Year of origination Pre 2013 [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Balance | 1,349 | 1,765 |
HELOC's [Member] | Year of origination 2013 [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Balance | 147 | 193 |
HELOC's [Member] | Year of origination 2014 [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Balance | 116 | 152 |
HELOC's [Member] | Year of origination 2015 [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Balance | 128 | 146 |
HELOC's [Member] | Year of origination 2016 [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Balance | 111 | 94 |
HELOC's [Member] | Year of origination 2017 [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Balance | 92 | |
HELOC's [Member] | Estimated Current LTV 70% And Below [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Balance | $ 1,773 | $ 2,070 |
Weighted Average Updated FICO | credit_rating | 772 | 771 |
Utilization Rate | 32.00% | 35.00% |
Percent of Loans that are on Nonaccrual Status | 0.18% | 0.12% |
HELOC's [Member] | Estimated Current LTV Greater Than 70% through 90% [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Balance | $ 148 | $ 234 |
Weighted Average Updated FICO | credit_rating | 755 | 757 |
Utilization Rate | 47.00% | 50.00% |
Percent of Loans that are on Nonaccrual Status | 0.84% | 0.40% |
HELOC's [Member] | Estimated Current LTV Greater Than 90% through 100% [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Balance | $ 14 | $ 29 |
Weighted Average Updated FICO | credit_rating | 742 | 747 |
Utilization Rate | 64.00% | 66.00% |
Percent of Loans that are on Nonaccrual Status | 2.85% | 1.74% |
HELOC's [Member] | Estimated Current LTV Greater Than 100% [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Balance | $ 8 | $ 17 |
Weighted Average Updated FICO | credit_rating | 718 | 728 |
Utilization Rate | 72.00% | 70.00% |
Percent of Loans that are on Nonaccrual Status | 4.91% | 3.73% |
HELOC's [Member] | Origination Loan To Value Ratio 70% And Below [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Balance | $ 1,360 | $ 1,628 |
HELOC's [Member] | Origination Loan to Value Ratio Greater Than 70% Through 90% [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Balance | 574 | 709 |
HELOC's [Member] | Origination Loan to Value Ratio Greater Than 90% Through 100% [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Balance | 9 | 13 |
Pledged asset lines [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Balance | 4,369 | 3,851 |
Pledged asset lines [Member] | Weighted Average Loan to Value Ratio =70% [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Balance | $ 4,369 | $ 3,851 |
Weighted Average Updated FICO | credit_rating | 765 | 763 |
Utilization Rate | 41.00% | 46.00% |
Percent of Loans that are on Nonaccrual Status | 0.00% |
Bank Loans and Related Allowa71
Bank Loans and Related Allowance for Loan Losses (Convert to Amortizing Loans) (Details) - HELOC's [Member] $ in Millions | Dec. 31, 2017USD ($) |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Converted to amortizing loan by period end | $ 437 |
Within 1 year | 559 |
1 year – 3 years | 204 |
3 years – 5 years | 149 |
5 years | 594 |
Total | $ 1,943 |
Equipment, Office Facilities,72
Equipment, Office Facilities, and Property (Schedule of Equipment, Office Facilities, and Property) (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Property, Plant and Equipment [Line Items] | ||
Total equipment, office facilities, and property | $ 3,551 | $ 3,234 |
Accumulated depreciation and amortization | (2,080) | (1,935) |
Total equipment, office facilities, and property — net | 1,471 | 1,299 |
Software [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total equipment, office facilities, and property | 1,490 | 1,335 |
Buildings [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total equipment, office facilities, and property | 810 | 807 |
Leasehold improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total equipment, office facilities, and property | 357 | 342 |
Information technology equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total equipment, office facilities, and property | 326 | 299 |
Furniture and equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total equipment, office facilities, and property | 193 | 190 |
Land [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total equipment, office facilities, and property | 167 | 168 |
Construction in progress [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total equipment, office facilities, and property | 142 | 26 |
Telecommunications equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total equipment, office facilities, and property | $ 66 | $ 67 |
Equipment, Office Facilities,73
Equipment, Office Facilities, and Property (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Property, Plant and Equipment [Abstract] | |||
Depreciation and amortization expense for equipment, office facilities, and property | $ 232 | $ 197 | $ 179 |
Intangible Assets and Goodwil74
Intangible Assets and Goodwill (Intangible Assets and Goodwill) (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Value | $ 378 | $ 379 |
Accumulated Amortization | 270 | 235 |
Net Carrying Value, Including non-amortizing loan | 108 | 144 |
Client relationships [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Value | 274 | 274 |
Accumulated Amortization | 189 | 169 |
Net Carrying Value, Including non-amortizing loan | 85 | 105 |
Technology [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Value | 89 | 89 |
Accumulated Amortization | 66 | 56 |
Net Carrying Value, Including non-amortizing loan | 23 | 33 |
Trade name [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Value | 15 | 16 |
Accumulated Amortization | 15 | 10 |
Net Carrying Value, Including non-amortizing loan | $ 0 | $ 6 |
Intangible Assets and Goodwil75
Intangible Assets and Goodwill (Narrative) (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Intangible asset, amortization expense | $ 37,000,000 | $ 37,000,000 | $ 45,000,000 |
Goodwill impairment | $ 0 | $ 0 | $ 0 |
Intangible Assets and Goodwil76
Intangible Assets and Goodwill (Estimated Future Annual Amortization Expense for Intangible Assets) (Details) $ in Millions | Dec. 31, 2017USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
2,018 | $ 30 |
2,019 | 27 |
2,020 | 22 |
2,021 | 15 |
2,022 | 11 |
Thereafter | 2 |
Net Carrying Value | $ 107 |
Intangible Assets and Goodwil77
Intangible Assets and Goodwill (Changes in Carrying Amount of Goodwill as Allocated to Reportable Segments) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Goodwill [Roll Forward] | ||
Beginning balance | $ 1,227 | $ 1,227 |
Goodwill acquired and other changes during the period | 0 | 0 |
Ending balance | 1,227 | 1,227 |
Investor Services [Member] | ||
Goodwill [Roll Forward] | ||
Beginning balance | 1,096 | 1,096 |
Goodwill acquired and other changes during the period | 0 | 0 |
Ending balance | 1,096 | 1,096 |
Advisor Services [Member] | ||
Goodwill [Roll Forward] | ||
Beginning balance | 131 | 131 |
Goodwill acquired and other changes during the period | 0 | 0 |
Ending balance | $ 131 | $ 131 |
Other Assets (Components of Oth
Other Assets (Components of Other Assets) (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Accounts receivable | $ 461 | $ 451 |
Interest and dividends receivable | 413 | 325 |
FHLB stock | 405 | 81 |
Other investments | 376 | 243 |
Prepaid expenses | 126 | 90 |
Deferred tax asset — net | 76 | 143 |
Other | 92 | 75 |
Total other assets | $ 1,949 | $ 1,408 |
Variable Interest Entities (Nar
Variable Interest Entities (Narrative) (Details) - LIHTC Investments [Member] | 12 Months Ended |
Dec. 31, 2017 | |
Minimum [Member] | |
Variable Interest Entity [Line Items] | |
Commitment, expected payment date | 2,018 |
Maximum [Member] | |
Variable Interest Entity [Line Items] | |
Commitment, expected payment date | 2,021 |
Variable Interest Entities (Agg
Variable Interest Entities (Aggregate Assets, Liabilities and Maximum Exposure to Loss) (Details) - Variable Interest Entity, Not Primary Beneficiary [Member] - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Variable Interest Entity [Line Items] | ||
Aggregate assets | $ 373 | $ 249 |
Aggregate liabilities | 203 | 135 |
Maximum exposure to loss | 429 | 269 |
LIHTC Investments [Member] | ||
Variable Interest Entity [Line Items] | ||
Aggregate assets | 304 | 189 |
Aggregate liabilities | 203 | 135 |
Maximum exposure to loss | 304 | 189 |
Other CRA Investments [Member] | ||
Variable Interest Entity [Line Items] | ||
Aggregate assets | 69 | 60 |
Aggregate liabilities | 0 | 0 |
Maximum exposure to loss | $ 125 | $ 80 |
Bank Deposits (Deposits from Ba
Bank Deposits (Deposits from Banking Clients Consisting of Interest Bearing and Noninterest Bearing Deposits) (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Interest-bearing deposits: | ||
Deposits swept from brokerage accounts | $ 148,212 | $ 141,146 |
Checking | 13,388 | 13,842 |
Savings and other | 7,264 | 7,792 |
Total interest-bearing deposits | 168,864 | 162,780 |
Non-interest-bearing deposits | 792 | 674 |
Total bank deposits | $ 169,656 | $ 163,454 |
Borrowings (Long-term Debt Incl
Borrowings (Long-term Debt Including Unamortized Debt Discounts and Premiums) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Debt Instrument [Line Items] | ||
Unamortized discount, net | $ (14) | $ (13) |
Debt issuance costs | (25) | (10) |
Total long-term debt | $ 4,753 | 2,876 |
Lease term | 20 years | |
Senior Notes [Member] | ||
Debt Instrument [Line Items] | ||
Senior Notes | $ 4,731 | 2,581 |
Senior Notes [Member] | Senior Notes Due March 2018 [Member] | ||
Debt Instrument [Line Items] | ||
Fixed Interest Rate | 1.50% | |
Senior Notes | $ 625 | 625 |
Senior Notes [Member] | Senior Notes Due July 2018 [Member] | ||
Debt Instrument [Line Items] | ||
Fixed Interest Rate | 2.20% | |
Senior Notes | $ 275 | 275 |
Senior Notes [Member] | Senior Notes Due 2020 [Member] | ||
Debt Instrument [Line Items] | ||
Fixed Interest Rate | 4.45% | |
Senior Notes | $ 700 | 700 |
Senior Notes [Member] | Senior Notes Due 2022 [Member] | ||
Debt Instrument [Line Items] | ||
Fixed Interest Rate | 3.225% | |
Senior Notes | $ 256 | 256 |
Senior Notes [Member] | Senior Notes Due 2023 [Member] | ||
Debt Instrument [Line Items] | ||
Fixed Interest Rate | 2.65% | |
Senior Notes | $ 800 | 0 |
Senior Notes [Member] | Senior Notes Due 2025 [Member] | ||
Debt Instrument [Line Items] | ||
Fixed Interest Rate | 3.00% | |
Senior Notes | $ 375 | 375 |
Senior Notes [Member] | Senior Notes Due 2026 [Member] | ||
Debt Instrument [Line Items] | ||
Fixed Interest Rate | 3.45% | |
Senior Notes | $ 350 | 350 |
Senior Notes [Member] | Senior Notes Due 2027 [Member] | ||
Debt Instrument [Line Items] | ||
Fixed Interest Rate | 3.20% | |
Senior Notes | $ 650 | 0 |
Senior Notes [Member] | Senior Notes Due 2028 [Member] | ||
Debt Instrument [Line Items] | ||
Fixed Interest Rate | 3.20% | |
Senior Notes | $ 700 | 0 |
Medium-Term Notes [Member] | ||
Debt Instrument [Line Items] | ||
Fixed Interest Rate | 6.375% | |
Medium Term Notes | $ 0 | 250 |
Finance lease obligation [Member] | ||
Debt Instrument [Line Items] | ||
Fixed Interest Rate | 5.45% | |
Finance lease obligation | $ 61 | $ 68 |
Borrowings (Annual Maturities o
Borrowings (Annual Maturities on Long-term Debt Outstanding) (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Debt Disclosure [Abstract] | ||
2,018 | $ 908 | |
2,019 | 8 | |
2,020 | 709 | |
2,021 | 9 | |
2,022 | 266 | |
Thereafter | 2,892 | |
Total maturities | 4,792 | |
Unamortized discount, net | (14) | $ (13) |
Debt issuance costs | (25) | (10) |
Total long-term debt | $ 4,753 | $ 2,876 |
Borrowings (Narrative) (Details
Borrowings (Narrative) (Details) - USD ($) | Dec. 31, 2017 | Dec. 31, 2016 |
Line of Credit Facility [Line Items] | ||
FHLB stock | $ 405,000,000 | $ 81,000,000 |
Federal Home Loan Bank Advances [Member] | Schwab Bank [Member] | ||
Line of Credit Facility [Line Items] | ||
FHLB stock | 405,000,000 | 81,000,000 |
Federal Home Loan Bank Advances [Member] | Secured Credit Facility [Member] | ||
Line of Credit Facility [Line Items] | ||
Line of credit facility, current borrowing capacity | 32,300,000,000 | |
Borrowings on line of credit | $ 15,000,000,000 | $ 0 |
Commitments and Contingencies85
Commitments and Contingencies (Narrative) (Details) - USD ($) | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Aug. 28, 2008 | |
Loss Contingencies [Line Items] | ||||
Rent expense | $ 136,000,000 | $ 123,000,000 | $ 116,000,000 | |
Aggregate face amount of letter of credit agreements | 225,000,000 | |||
Margin Requirements [Member] | ||||
Loss Contingencies [Line Items] | ||||
Funds drawn under LOC's | 0 | |||
Bond Market Fund Litigation [Member] | Mortgage Backed Securities [Member] | ||||
Loss Contingencies [Line Items] | ||||
Alleged minimum percentage of fund assets invested in CMOs and mortgage-backed securities without obtaining shareholder vote | 25.00% | |||
First Mortgage [Member] | ||||
Loss Contingencies [Line Items] | ||||
Purchased first mortgages and HELOCs | 2,800,000,000 | 3,300,000,000 | ||
Home Equity Line of Credit [Member] | ||||
Loss Contingencies [Line Items] | ||||
Purchased first mortgages and HELOCs | $ 461,000,000 | $ 440,000,000 |
Commitments and Contingencies86
Commitments and Contingencies (Commitments to Extend/Purchase) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Commitments to purchase | $ 10,368 | $ 8,911 |
Home Equity Loans and Lines of Credit, Pledged Asset Lines and Other Lines of Credit [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Commitments to extend credit related to unused HELOCs, PALs, and other lines of credit | 10,060 | 8,445 |
First Mortgage [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Commitments to purchase | $ 308 | $ 466 |
Commitments and Contingencies87
Commitments and Contingencies (Future Annual Minimum Rental Commitments, Net of Contractual Subleases) (Details) $ in Millions | Dec. 31, 2017USD ($) |
Operating Leases | |
2,018 | $ 137 |
2,019 | 119 |
2,020 | 109 |
2,021 | 86 |
2,022 | 68 |
Thereafter | 310 |
Total | 829 |
Subleases | |
2,018 | 6 |
2,019 | 4 |
2,020 | 4 |
2,021 | 4 |
2,022 | 2 |
Thereafter | 1 |
Total | 21 |
Net | |
2,018 | 131 |
2,019 | 115 |
2,020 | 105 |
2,021 | 82 |
2,022 | 66 |
Thereafter | 309 |
Total | $ 808 |
Commitments and Contingencies88
Commitments and Contingencies (Purchase Obligations) (Details) $ in Millions | Dec. 31, 2017USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
2,018 | $ 305 |
2,019 | 148 |
2,020 | 71 |
2,021 | 26 |
2,022 | 22 |
Thereafter | 181 |
Total | $ 753 |
Financial Instruments Subject89
Financial Instruments Subject to Off-Balance Sheet Credit Risk (Narrative) (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Securities Financing Transaction, Fair Value [Member] | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Fair value of securities borrowed | $ 215 | $ 213 |
Financial Instruments Subject90
Financial Instruments Subject to Off-Balance Sheet Credit Risk (Offsetting Assets and Liabilities) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Resale agreements | ||
Gross Assets | $ 6,596 | $ 9,547 |
Gross Amounts Offset in the Consolidated Balance Sheets | 0 | 0 |
Net Amounts Presented in the Consolidated Balance Sheets | 6,596 | 9,547 |
Counterparty Offsetting | 0 | 0 |
Collateral | (6,596) | (9,547) |
Net Amount | 0 | 0 |
Securities borrowed | ||
Gross Assets | 222 | 393 |
Gross Amounts Offset in the Consolidated Balance Sheets | 0 | 0 |
Net Amounts Presented in the Consolidated Balance Sheets | 222 | 393 |
Counterparty Offsetting | (199) | (200) |
Collateral | (22) | (189) |
Net Amount | 1 | 4 |
Total Gross Assets | 6,818 | 9,940 |
Total Assets, Gross Amounts Offset in the Condensed Consolidated Balance Sheets | 0 | 0 |
Total Assets, Net Amounts Presented in the Condensed Consolidated Balance Sheets | 6,818 | 9,940 |
Total Assets, Gross Amounts Not Offset in the Consolidated Balance Sheet, Counterparty Offsetting | (199) | (200) |
Total Assets, Gross Amounts Not Offset in the Consolidated Balance Sheet, Collateral | (6,618) | (9,736) |
Total Assets, Net Amount | 1 | 4 |
Securities loaned | ||
Gross Liabilities | 966 | 1,996 |
Gross Amounts Offset in the Consolidated Balance Sheets | 0 | 0 |
Net Amounts Presented in the Consolidated Balance Sheets | 966 | 1,996 |
Counterparty Offsetting | (199) | (200) |
Collateral | (670) | (1,660) |
Net Amount | 97 | 136 |
Total Gross Liabilities | 966 | 1,996 |
Total Liabilities, Net Amounts Presented in the Consolidated Balance Sheet | 966 | 1,996 |
Total Liabilities, Gross Amounts Not Offset in the Consolidated Balance Sheet, Counterparty Offsetting | (199) | (200) |
Total Liabilities, Gross Amounts Not Offset in the Consolidated Balance Sheet, Collateral | (670) | (1,660) |
Total Liabilities, Net Amount | 97 | 136 |
Offsetting Assets [Line Items] | ||
Fair value of client securities available to be pledged | $ 25,905 | $ 21,516 |
Resale And Repurchase Agreements [Member] | ||
Offsetting Assets [Line Items] | ||
Percentage of collateral to related assets | 102.00% | 102.00% |
Fair value of client securities available to be pledged | $ 6,700 | $ 9,800 |
Financial Instruments Subject91
Financial Instruments Subject to Off-Balance Sheet Credit Risk (Summary of the Fair Value of Client Securities Available to Utilize as Collateral and Amounts Pledged) (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Securities Financing Transaction [Line Items] | ||
Fair value of client securities available to be pledged | $ 25,905 | $ 21,516 |
Fair value of client securities pledged | 5,075 | 5,193 |
Fulfillment of Requirements with the Options Clearing Corporation [Member] | ||
Securities Financing Transaction [Line Items] | ||
Fair value of client securities pledged | 2,280 | 1,519 |
Fulfillment of Client Short Sales [Member] | ||
Securities Financing Transaction [Line Items] | ||
Fair value of client securities pledged | 2,011 | 2,048 |
Securities Lending to Other Broker-Dealers [Member] | ||
Securities Financing Transaction [Line Items] | ||
Fair value of client securities pledged | 784 | 1,626 |
Fully-Paid Client Securities [Member] | ||
Securities Financing Transaction [Line Items] | ||
Fair value of client securities pledged | $ 78 | $ 58 |
Fair Values of Assets and Lia92
Fair Values of Assets and Liabilities (Fair Value Hierarchy for Assets and Liabilities Measured at Fair Value on a Recurring Basis) (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other securities owned | $ 539 | $ 449 |
Available for sale securities | 49,995 | 77,365 |
Estimate of Fair Value Measurement [Member] | Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 2,727 | 1,514 |
Investments segregated and on deposit for regulatory purposes | 5,856 | 8,636 |
Other securities owned | 539 | 449 |
Available for sale securities | 49,995 | 77,365 |
Total | 59,117 | 87,964 |
Estimate of Fair Value Measurement [Member] | Fair Value, Measurements, Recurring [Member] | Money Market Funds [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 2,727 | 1,514 |
Estimate of Fair Value Measurement [Member] | Fair Value, Measurements, Recurring [Member] | Certificates of deposit [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments segregated and on deposit for regulatory purposes | 2,198 | 2,525 |
Available for sale securities | 2,041 | 2,071 |
Estimate of Fair Value Measurement [Member] | Fair Value, Measurements, Recurring [Member] | US Government Debt Securities [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments segregated and on deposit for regulatory purposes | 3,658 | 6,111 |
Estimate of Fair Value Measurement [Member] | Fair Value, Measurements, Recurring [Member] | Equity and bond mutual funds [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other securities owned | 318 | 272 |
Estimate of Fair Value Measurement [Member] | Fair Value, Measurements, Recurring [Member] | Schwab Funds money market funds [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other securities owned | 135 | 108 |
Estimate of Fair Value Measurement [Member] | Fair Value, Measurements, Recurring [Member] | State and municipal debt obligations [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other securities owned | 52 | 41 |
Estimate of Fair Value Measurement [Member] | Fair Value, Measurements, Recurring [Member] | Equity, U.S. Government and corporate debt, and other securities [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other securities owned | 34 | 28 |
Estimate of Fair Value Measurement [Member] | Fair Value, Measurements, Recurring [Member] | U.S. agency mortgage-backed securities [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | 20,929 | 33,195 |
Estimate of Fair Value Measurement [Member] | Fair Value, Measurements, Recurring [Member] | Asset-backed securities [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | 9,047 | 20,335 |
Estimate of Fair Value Measurement [Member] | Fair Value, Measurements, Recurring [Member] | Corporate debt securities [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | 6,169 | 9,852 |
Estimate of Fair Value Measurement [Member] | Fair Value, Measurements, Recurring [Member] | U.S. Treasury securities [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | 9,500 | 8,623 |
Estimate of Fair Value Measurement [Member] | Fair Value, Measurements, Recurring [Member] | Commercial paper [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | 313 | 214 |
Estimate of Fair Value Measurement [Member] | Fair Value, Measurements, Recurring [Member] | U.S. agency notes [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | 1,906 | 1,907 |
Estimate of Fair Value Measurement [Member] | Fair Value, Measurements, Recurring [Member] | U.S. state and municipal securities [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | 1,123 | |
Estimate of Fair Value Measurement [Member] | Fair Value, Measurements, Recurring [Member] | Non-agency commercial mortgage-backed securities [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | 40 | 45 |
Estimate of Fair Value Measurement [Member] | Fair Value, Measurements, Recurring [Member] | Foreign government agency securities [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | 50 | |
Estimate of Fair Value Measurement [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 2,727 | 1,514 |
Investments segregated and on deposit for regulatory purposes | 0 | 0 |
Other securities owned | 455 | 382 |
Available for sale securities | 0 | 0 |
Total | 3,182 | 1,896 |
Estimate of Fair Value Measurement [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Fair Value, Measurements, Recurring [Member] | Money Market Funds [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 2,727 | 1,514 |
Estimate of Fair Value Measurement [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Fair Value, Measurements, Recurring [Member] | Certificates of deposit [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments segregated and on deposit for regulatory purposes | 0 | 0 |
Available for sale securities | 0 | 0 |
Estimate of Fair Value Measurement [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Fair Value, Measurements, Recurring [Member] | US Government Debt Securities [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments segregated and on deposit for regulatory purposes | 0 | 0 |
Estimate of Fair Value Measurement [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Fair Value, Measurements, Recurring [Member] | Equity and bond mutual funds [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other securities owned | 318 | 272 |
Estimate of Fair Value Measurement [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Fair Value, Measurements, Recurring [Member] | Schwab Funds money market funds [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other securities owned | 135 | 108 |
Estimate of Fair Value Measurement [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Fair Value, Measurements, Recurring [Member] | State and municipal debt obligations [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other securities owned | 0 | 0 |
Estimate of Fair Value Measurement [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Fair Value, Measurements, Recurring [Member] | Equity, U.S. Government and corporate debt, and other securities [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other securities owned | 2 | 2 |
Estimate of Fair Value Measurement [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Fair Value, Measurements, Recurring [Member] | U.S. agency mortgage-backed securities [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | 0 | 0 |
Estimate of Fair Value Measurement [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Fair Value, Measurements, Recurring [Member] | Asset-backed securities [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | 0 | 0 |
Estimate of Fair Value Measurement [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Fair Value, Measurements, Recurring [Member] | Corporate debt securities [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | 0 | 0 |
Estimate of Fair Value Measurement [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Fair Value, Measurements, Recurring [Member] | U.S. Treasury securities [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | 0 | 0 |
Estimate of Fair Value Measurement [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Fair Value, Measurements, Recurring [Member] | Commercial paper [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | 0 | 0 |
Estimate of Fair Value Measurement [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Fair Value, Measurements, Recurring [Member] | U.S. agency notes [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | 0 | 0 |
Estimate of Fair Value Measurement [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Fair Value, Measurements, Recurring [Member] | U.S. state and municipal securities [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | 0 | |
Estimate of Fair Value Measurement [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Fair Value, Measurements, Recurring [Member] | Non-agency commercial mortgage-backed securities [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | 0 | 0 |
Estimate of Fair Value Measurement [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Fair Value, Measurements, Recurring [Member] | Foreign government agency securities [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | 0 | |
Estimate of Fair Value Measurement [Member] | Significant Other Observable Inputs (Level 2) [Member] | Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 0 | 0 |
Investments segregated and on deposit for regulatory purposes | 5,856 | 8,636 |
Other securities owned | 84 | 67 |
Available for sale securities | 49,995 | 77,365 |
Total | 55,935 | 86,068 |
Estimate of Fair Value Measurement [Member] | Significant Other Observable Inputs (Level 2) [Member] | Fair Value, Measurements, Recurring [Member] | Money Market Funds [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 0 | 0 |
Estimate of Fair Value Measurement [Member] | Significant Other Observable Inputs (Level 2) [Member] | Fair Value, Measurements, Recurring [Member] | Certificates of deposit [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments segregated and on deposit for regulatory purposes | 2,198 | 2,525 |
Available for sale securities | 2,041 | 2,071 |
Estimate of Fair Value Measurement [Member] | Significant Other Observable Inputs (Level 2) [Member] | Fair Value, Measurements, Recurring [Member] | US Government Debt Securities [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments segregated and on deposit for regulatory purposes | 3,658 | 6,111 |
Estimate of Fair Value Measurement [Member] | Significant Other Observable Inputs (Level 2) [Member] | Fair Value, Measurements, Recurring [Member] | Equity and bond mutual funds [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other securities owned | 0 | 0 |
Estimate of Fair Value Measurement [Member] | Significant Other Observable Inputs (Level 2) [Member] | Fair Value, Measurements, Recurring [Member] | Schwab Funds money market funds [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other securities owned | 0 | 0 |
Estimate of Fair Value Measurement [Member] | Significant Other Observable Inputs (Level 2) [Member] | Fair Value, Measurements, Recurring [Member] | State and municipal debt obligations [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other securities owned | 52 | 41 |
Estimate of Fair Value Measurement [Member] | Significant Other Observable Inputs (Level 2) [Member] | Fair Value, Measurements, Recurring [Member] | Equity, U.S. Government and corporate debt, and other securities [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other securities owned | 32 | 26 |
Estimate of Fair Value Measurement [Member] | Significant Other Observable Inputs (Level 2) [Member] | Fair Value, Measurements, Recurring [Member] | U.S. agency mortgage-backed securities [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | 20,929 | 33,195 |
Estimate of Fair Value Measurement [Member] | Significant Other Observable Inputs (Level 2) [Member] | Fair Value, Measurements, Recurring [Member] | Asset-backed securities [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | 9,047 | 20,335 |
Estimate of Fair Value Measurement [Member] | Significant Other Observable Inputs (Level 2) [Member] | Fair Value, Measurements, Recurring [Member] | Corporate debt securities [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | 6,169 | 9,852 |
Estimate of Fair Value Measurement [Member] | Significant Other Observable Inputs (Level 2) [Member] | Fair Value, Measurements, Recurring [Member] | U.S. Treasury securities [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | 9,500 | 8,623 |
Estimate of Fair Value Measurement [Member] | Significant Other Observable Inputs (Level 2) [Member] | Fair Value, Measurements, Recurring [Member] | Commercial paper [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | 313 | 214 |
Estimate of Fair Value Measurement [Member] | Significant Other Observable Inputs (Level 2) [Member] | Fair Value, Measurements, Recurring [Member] | U.S. agency notes [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | 1,906 | 1,907 |
Estimate of Fair Value Measurement [Member] | Significant Other Observable Inputs (Level 2) [Member] | Fair Value, Measurements, Recurring [Member] | U.S. state and municipal securities [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | 1,123 | |
Estimate of Fair Value Measurement [Member] | Significant Other Observable Inputs (Level 2) [Member] | Fair Value, Measurements, Recurring [Member] | Non-agency commercial mortgage-backed securities [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | 40 | 45 |
Estimate of Fair Value Measurement [Member] | Significant Other Observable Inputs (Level 2) [Member] | Fair Value, Measurements, Recurring [Member] | Foreign government agency securities [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | 50 | |
Estimate of Fair Value Measurement [Member] | Significant Unobservable Inputs (Level 3) [Member] | Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 0 | 0 |
Investments segregated and on deposit for regulatory purposes | 0 | 0 |
Other securities owned | 0 | 0 |
Available for sale securities | 0 | 0 |
Total | 0 | 0 |
Estimate of Fair Value Measurement [Member] | Significant Unobservable Inputs (Level 3) [Member] | Fair Value, Measurements, Recurring [Member] | Money Market Funds [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 0 | 0 |
Estimate of Fair Value Measurement [Member] | Significant Unobservable Inputs (Level 3) [Member] | Fair Value, Measurements, Recurring [Member] | Certificates of deposit [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments segregated and on deposit for regulatory purposes | 0 | 0 |
Available for sale securities | 0 | 0 |
Estimate of Fair Value Measurement [Member] | Significant Unobservable Inputs (Level 3) [Member] | Fair Value, Measurements, Recurring [Member] | US Government Debt Securities [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments segregated and on deposit for regulatory purposes | 0 | 0 |
Estimate of Fair Value Measurement [Member] | Significant Unobservable Inputs (Level 3) [Member] | Fair Value, Measurements, Recurring [Member] | Equity and bond mutual funds [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other securities owned | 0 | 0 |
Estimate of Fair Value Measurement [Member] | Significant Unobservable Inputs (Level 3) [Member] | Fair Value, Measurements, Recurring [Member] | Schwab Funds money market funds [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other securities owned | 0 | 0 |
Estimate of Fair Value Measurement [Member] | Significant Unobservable Inputs (Level 3) [Member] | Fair Value, Measurements, Recurring [Member] | State and municipal debt obligations [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other securities owned | 0 | 0 |
Estimate of Fair Value Measurement [Member] | Significant Unobservable Inputs (Level 3) [Member] | Fair Value, Measurements, Recurring [Member] | Equity, U.S. Government and corporate debt, and other securities [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other securities owned | 0 | 0 |
Estimate of Fair Value Measurement [Member] | Significant Unobservable Inputs (Level 3) [Member] | Fair Value, Measurements, Recurring [Member] | U.S. agency mortgage-backed securities [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | 0 | 0 |
Estimate of Fair Value Measurement [Member] | Significant Unobservable Inputs (Level 3) [Member] | Fair Value, Measurements, Recurring [Member] | Asset-backed securities [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | 0 | 0 |
Estimate of Fair Value Measurement [Member] | Significant Unobservable Inputs (Level 3) [Member] | Fair Value, Measurements, Recurring [Member] | Corporate debt securities [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | 0 | 0 |
Estimate of Fair Value Measurement [Member] | Significant Unobservable Inputs (Level 3) [Member] | Fair Value, Measurements, Recurring [Member] | U.S. Treasury securities [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | 0 | 0 |
Estimate of Fair Value Measurement [Member] | Significant Unobservable Inputs (Level 3) [Member] | Fair Value, Measurements, Recurring [Member] | Commercial paper [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | 0 | 0 |
Estimate of Fair Value Measurement [Member] | Significant Unobservable Inputs (Level 3) [Member] | Fair Value, Measurements, Recurring [Member] | U.S. agency notes [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | 0 | 0 |
Estimate of Fair Value Measurement [Member] | Significant Unobservable Inputs (Level 3) [Member] | Fair Value, Measurements, Recurring [Member] | U.S. state and municipal securities [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | 0 | |
Estimate of Fair Value Measurement [Member] | Significant Unobservable Inputs (Level 3) [Member] | Fair Value, Measurements, Recurring [Member] | Non-agency commercial mortgage-backed securities [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | 0 | $ 0 |
Estimate of Fair Value Measurement [Member] | Significant Unobservable Inputs (Level 3) [Member] | Fair Value, Measurements, Recurring [Member] | Foreign government agency securities [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | $ 0 |
Fair Values of Assets and Lia93
Fair Values of Assets and Liabilities (Fair Value of Other Financial Instruments) (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Assets: | ||
Fair Value | $ 120,373 | $ 74,444 |
Reported Value Measurement [Member] | ||
Assets: | ||
Cash and cash equivalents | 11,490 | 9,314 |
Cash and investments segregated and on deposit for regulatory purposes | 9,277 | 13,533 |
Receivables from brokers, dealers, and clearing organizations | 649 | 728 |
Receivables from brokerage clients — net | 20,568 | 17,151 |
Fair Value | 120,926 | 75,203 |
Bank loans, net | 16,478 | 15,403 |
Other assets | 781 | 328 |
Total | 180,169 | 131,660 |
Liabilities: | ||
Bank deposits | 169,656 | 163,454 |
Payables to brokers, dealers, and clearing organizations | 1,287 | 2,407 |
Payables to brokerage clients | 31,243 | 35,894 |
Accrued expenses and other liabilities | 1,463 | 1,169 |
Short-term borrowings | 15,000 | |
Long-term debt | 4,753 | 2,876 |
Total | 223,402 | 205,800 |
Reported Value Measurement [Member] | First Mortgage [Member] | ||
Assets: | ||
Bank loans, net | 10,000 | 9,117 |
Reported Value Measurement [Member] | HELOC's [Member] | ||
Assets: | ||
Bank loans, net | 1,935 | 2,342 |
Reported Value Measurement [Member] | Pledged asset lines [Member] | ||
Assets: | ||
Bank loans, net | 4,369 | 3,851 |
Reported Value Measurement [Member] | Other [Member] | ||
Assets: | ||
Bank loans, net | 174 | 93 |
Reported Value Measurement [Member] | U.S. agency mortgage-backed securities [Member] | ||
Assets: | ||
Fair Value | 101,197 | 72,439 |
Reported Value Measurement [Member] | Non-agency commercial mortgage-backed securities [Member] | ||
Assets: | ||
Fair Value | 994 | 997 |
Reported Value Measurement [Member] | Asset-backed securities [Member] | ||
Assets: | ||
Fair Value | 12,937 | 941 |
Reported Value Measurement [Member] | Corporate debt securities [Member] | ||
Assets: | ||
Fair Value | 4,078 | 436 |
Reported Value Measurement [Member] | U.S. Treasury securities [Member] | ||
Assets: | ||
Fair Value | 223 | 223 |
Reported Value Measurement [Member] | Commercial paper [Member] | ||
Assets: | ||
Fair Value | 99 | |
Reported Value Measurement [Member] | U.S. state and municipal securities [Member] | ||
Assets: | ||
Fair Value | 1,247 | 68 |
Reported Value Measurement [Member] | Certificates of deposit [Member] | ||
Assets: | ||
Fair Value | 200 | |
Reported Value Measurement [Member] | Foreign government agency securities [Member] | ||
Assets: | ||
Fair Value | 50 | |
Portion at Other than Fair Value Measurement [Member] | ||
Assets: | ||
Cash and cash equivalents | 11,490 | 9,314 |
Cash and investments segregated and on deposit for regulatory purposes | 9,277 | 13,533 |
Receivables from brokers, dealers, and clearing organizations | 649 | 728 |
Receivables from brokerage clients — net | 20,568 | 17,151 |
Fair Value | 120,373 | 74,444 |
Bank loans, net | 16,485 | 15,467 |
Other assets | 781 | 328 |
Total | 179,623 | 130,965 |
Liabilities: | ||
Bank deposits | 169,656 | 163,454 |
Payables to brokers, dealers, and clearing organizations | 1,287 | 2,407 |
Payables to brokerage clients | 31,243 | 35,894 |
Accrued expenses and other liabilities | 1,463 | 1,169 |
Short-term borrowings | 15,000 | |
Long-term debt | 4,811 | 2,941 |
Total | 223,460 | 205,865 |
Portion at Other than Fair Value Measurement [Member] | First Mortgage [Member] | ||
Assets: | ||
Bank loans, net | 9,917 | 9,064 |
Portion at Other than Fair Value Measurement [Member] | HELOC's [Member] | ||
Assets: | ||
Bank loans, net | 2,025 | 2,458 |
Portion at Other than Fair Value Measurement [Member] | Pledged asset lines [Member] | ||
Assets: | ||
Bank loans, net | 4,369 | 3,851 |
Portion at Other than Fair Value Measurement [Member] | Other [Member] | ||
Assets: | ||
Bank loans, net | 174 | 94 |
Portion at Other than Fair Value Measurement [Member] | U.S. agency mortgage-backed securities [Member] | ||
Assets: | ||
Fair Value | 100,453 | 71,677 |
Portion at Other than Fair Value Measurement [Member] | Non-agency commercial mortgage-backed securities [Member] | ||
Assets: | ||
Fair Value | 999 | 1,004 |
Portion at Other than Fair Value Measurement [Member] | Asset-backed securities [Member] | ||
Assets: | ||
Fair Value | 13,062 | 941 |
Portion at Other than Fair Value Measurement [Member] | Corporate debt securities [Member] | ||
Assets: | ||
Fair Value | 4,086 | 436 |
Portion at Other than Fair Value Measurement [Member] | U.S. Treasury securities [Member] | ||
Assets: | ||
Fair Value | 220 | 219 |
Portion at Other than Fair Value Measurement [Member] | Commercial paper [Member] | ||
Assets: | ||
Fair Value | 99 | |
Portion at Other than Fair Value Measurement [Member] | U.S. state and municipal securities [Member] | ||
Assets: | ||
Fair Value | 1,304 | 68 |
Portion at Other than Fair Value Measurement [Member] | Certificates of deposit [Member] | ||
Assets: | ||
Fair Value | 200 | |
Portion at Other than Fair Value Measurement [Member] | Foreign government agency securities [Member] | ||
Assets: | ||
Fair Value | 49 | |
Portion at Other than Fair Value Measurement [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ||
Assets: | ||
Cash and cash equivalents | 0 | 0 |
Cash and investments segregated and on deposit for regulatory purposes | 0 | 0 |
Receivables from brokers, dealers, and clearing organizations | 0 | 0 |
Receivables from brokerage clients — net | 0 | 0 |
Fair Value | 0 | 0 |
Bank loans, net | 0 | 0 |
Other assets | 0 | 0 |
Total | 0 | 0 |
Liabilities: | ||
Bank deposits | 0 | 0 |
Payables to brokers, dealers, and clearing organizations | 0 | 0 |
Payables to brokerage clients | 0 | 0 |
Accrued expenses and other liabilities | 0 | 0 |
Short-term borrowings | 0 | |
Long-term debt | 0 | 0 |
Total | 0 | 0 |
Portion at Other than Fair Value Measurement [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | First Mortgage [Member] | ||
Assets: | ||
Bank loans, net | 0 | 0 |
Portion at Other than Fair Value Measurement [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | HELOC's [Member] | ||
Assets: | ||
Bank loans, net | 0 | 0 |
Portion at Other than Fair Value Measurement [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Pledged asset lines [Member] | ||
Assets: | ||
Bank loans, net | 0 | 0 |
Portion at Other than Fair Value Measurement [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Other [Member] | ||
Assets: | ||
Bank loans, net | 0 | 0 |
Portion at Other than Fair Value Measurement [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | U.S. agency mortgage-backed securities [Member] | ||
Assets: | ||
Fair Value | 0 | 0 |
Portion at Other than Fair Value Measurement [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Non-agency commercial mortgage-backed securities [Member] | ||
Assets: | ||
Fair Value | 0 | 0 |
Portion at Other than Fair Value Measurement [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Asset-backed securities [Member] | ||
Assets: | ||
Fair Value | 0 | 0 |
Portion at Other than Fair Value Measurement [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Corporate debt securities [Member] | ||
Assets: | ||
Fair Value | 0 | 0 |
Portion at Other than Fair Value Measurement [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | U.S. Treasury securities [Member] | ||
Assets: | ||
Fair Value | 0 | 0 |
Portion at Other than Fair Value Measurement [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Commercial paper [Member] | ||
Assets: | ||
Fair Value | 0 | |
Portion at Other than Fair Value Measurement [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | U.S. state and municipal securities [Member] | ||
Assets: | ||
Fair Value | 0 | 0 |
Portion at Other than Fair Value Measurement [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Certificates of deposit [Member] | ||
Assets: | ||
Fair Value | 0 | |
Portion at Other than Fair Value Measurement [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Foreign government agency securities [Member] | ||
Assets: | ||
Fair Value | 0 | |
Portion at Other than Fair Value Measurement [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||
Assets: | ||
Cash and cash equivalents | 11,490 | 9,314 |
Cash and investments segregated and on deposit for regulatory purposes | 9,277 | 13,533 |
Receivables from brokers, dealers, and clearing organizations | 649 | 728 |
Receivables from brokerage clients — net | 20,568 | 17,151 |
Fair Value | 120,373 | 74,444 |
Bank loans, net | 16,485 | 15,467 |
Other assets | 781 | 328 |
Total | 179,623 | 130,965 |
Liabilities: | ||
Bank deposits | 169,656 | 163,454 |
Payables to brokers, dealers, and clearing organizations | 1,287 | 2,407 |
Payables to brokerage clients | 31,243 | 35,894 |
Accrued expenses and other liabilities | 1,463 | 1,169 |
Short-term borrowings | 15,000 | |
Long-term debt | 4,811 | 2,941 |
Total | 223,460 | 205,865 |
Portion at Other than Fair Value Measurement [Member] | Significant Other Observable Inputs (Level 2) [Member] | First Mortgage [Member] | ||
Assets: | ||
Bank loans, net | 9,917 | 9,064 |
Portion at Other than Fair Value Measurement [Member] | Significant Other Observable Inputs (Level 2) [Member] | HELOC's [Member] | ||
Assets: | ||
Bank loans, net | 2,025 | 2,458 |
Portion at Other than Fair Value Measurement [Member] | Significant Other Observable Inputs (Level 2) [Member] | Pledged asset lines [Member] | ||
Assets: | ||
Bank loans, net | 4,369 | 3,851 |
Portion at Other than Fair Value Measurement [Member] | Significant Other Observable Inputs (Level 2) [Member] | Other [Member] | ||
Assets: | ||
Bank loans, net | 174 | 94 |
Portion at Other than Fair Value Measurement [Member] | Significant Other Observable Inputs (Level 2) [Member] | U.S. agency mortgage-backed securities [Member] | ||
Assets: | ||
Fair Value | 100,453 | 71,677 |
Portion at Other than Fair Value Measurement [Member] | Significant Other Observable Inputs (Level 2) [Member] | Non-agency commercial mortgage-backed securities [Member] | ||
Assets: | ||
Fair Value | 999 | 1,004 |
Portion at Other than Fair Value Measurement [Member] | Significant Other Observable Inputs (Level 2) [Member] | Asset-backed securities [Member] | ||
Assets: | ||
Fair Value | 13,062 | 941 |
Portion at Other than Fair Value Measurement [Member] | Significant Other Observable Inputs (Level 2) [Member] | Corporate debt securities [Member] | ||
Assets: | ||
Fair Value | 4,086 | 436 |
Portion at Other than Fair Value Measurement [Member] | Significant Other Observable Inputs (Level 2) [Member] | U.S. Treasury securities [Member] | ||
Assets: | ||
Fair Value | 220 | 219 |
Portion at Other than Fair Value Measurement [Member] | Significant Other Observable Inputs (Level 2) [Member] | Commercial paper [Member] | ||
Assets: | ||
Fair Value | 99 | |
Portion at Other than Fair Value Measurement [Member] | Significant Other Observable Inputs (Level 2) [Member] | U.S. state and municipal securities [Member] | ||
Assets: | ||
Fair Value | 1,304 | 68 |
Portion at Other than Fair Value Measurement [Member] | Significant Other Observable Inputs (Level 2) [Member] | Certificates of deposit [Member] | ||
Assets: | ||
Fair Value | 200 | |
Portion at Other than Fair Value Measurement [Member] | Significant Other Observable Inputs (Level 2) [Member] | Foreign government agency securities [Member] | ||
Assets: | ||
Fair Value | 49 | |
Portion at Other than Fair Value Measurement [Member] | Significant Unobservable Inputs (Level 3) [Member] | ||
Assets: | ||
Cash and cash equivalents | 0 | 0 |
Cash and investments segregated and on deposit for regulatory purposes | 0 | 0 |
Receivables from brokers, dealers, and clearing organizations | 0 | 0 |
Receivables from brokerage clients — net | 0 | 0 |
Fair Value | 0 | 0 |
Bank loans, net | 0 | 0 |
Other assets | 0 | 0 |
Total | 0 | 0 |
Liabilities: | ||
Bank deposits | 0 | 0 |
Payables to brokers, dealers, and clearing organizations | 0 | 0 |
Payables to brokerage clients | 0 | 0 |
Accrued expenses and other liabilities | 0 | 0 |
Short-term borrowings | 0 | |
Long-term debt | 0 | 0 |
Total | 0 | 0 |
Portion at Other than Fair Value Measurement [Member] | Significant Unobservable Inputs (Level 3) [Member] | First Mortgage [Member] | ||
Assets: | ||
Bank loans, net | 0 | 0 |
Portion at Other than Fair Value Measurement [Member] | Significant Unobservable Inputs (Level 3) [Member] | HELOC's [Member] | ||
Assets: | ||
Bank loans, net | 0 | 0 |
Portion at Other than Fair Value Measurement [Member] | Significant Unobservable Inputs (Level 3) [Member] | Pledged asset lines [Member] | ||
Assets: | ||
Bank loans, net | 0 | 0 |
Portion at Other than Fair Value Measurement [Member] | Significant Unobservable Inputs (Level 3) [Member] | Other [Member] | ||
Assets: | ||
Bank loans, net | 0 | 0 |
Portion at Other than Fair Value Measurement [Member] | Significant Unobservable Inputs (Level 3) [Member] | U.S. agency mortgage-backed securities [Member] | ||
Assets: | ||
Fair Value | 0 | 0 |
Portion at Other than Fair Value Measurement [Member] | Significant Unobservable Inputs (Level 3) [Member] | Non-agency commercial mortgage-backed securities [Member] | ||
Assets: | ||
Fair Value | 0 | 0 |
Portion at Other than Fair Value Measurement [Member] | Significant Unobservable Inputs (Level 3) [Member] | Asset-backed securities [Member] | ||
Assets: | ||
Fair Value | 0 | 0 |
Portion at Other than Fair Value Measurement [Member] | Significant Unobservable Inputs (Level 3) [Member] | Corporate debt securities [Member] | ||
Assets: | ||
Fair Value | 0 | 0 |
Portion at Other than Fair Value Measurement [Member] | Significant Unobservable Inputs (Level 3) [Member] | U.S. Treasury securities [Member] | ||
Assets: | ||
Fair Value | 0 | 0 |
Portion at Other than Fair Value Measurement [Member] | Significant Unobservable Inputs (Level 3) [Member] | Commercial paper [Member] | ||
Assets: | ||
Fair Value | 0 | |
Portion at Other than Fair Value Measurement [Member] | Significant Unobservable Inputs (Level 3) [Member] | U.S. state and municipal securities [Member] | ||
Assets: | ||
Fair Value | 0 | $ 0 |
Portion at Other than Fair Value Measurement [Member] | Significant Unobservable Inputs (Level 3) [Member] | Certificates of deposit [Member] | ||
Assets: | ||
Fair Value | 0 | |
Portion at Other than Fair Value Measurement [Member] | Significant Unobservable Inputs (Level 3) [Member] | Foreign government agency securities [Member] | ||
Assets: | ||
Fair Value | $ 0 |
Stockholders' Equity (Narrative
Stockholders' Equity (Narrative) (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Class of Stock [Line Items] | |||
Preferred stock, shares authorized (in shares) | 9,940,000 | 9,940,000 | |
Preferred stock, par value (USD per share) | $ 0.01 | $ 0.01 | |
Common Stock [Member] | |||
Class of Stock [Line Items] | |||
Shares issued (in shares) | 0 | 0 | 0 |
Stockholders' Equity (Preferred
Stockholders' Equity (Preferred Stock Issued and Outstanding) (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Class of Stock [Line Items] | ||
Shares issued (in shares) | 1,761,000 | 2,241,000 |
Shares outstanding (in shares) | 1,761,000 | 2,241,000 |
Carrying Value | $ 2,793 | $ 2,783 |
Series B Preferred Stock [Member] | ||
Class of Stock [Line Items] | ||
Shares issued (in shares) | 0 | 485,000 |
Shares outstanding (in shares) | 0 | 485,000 |
Liquidation preference (USD per share) | $ 1,000 | |
Carrying Value | $ 0 | $ 482 |
Dividend Rate in Effect | 0.00% | |
Series C Preferred Stock [Member] | ||
Class of Stock [Line Items] | ||
Shares issued (in shares) | 600,000 | 600,000 |
Shares outstanding (in shares) | 600,000 | 600,000 |
Liquidation preference (USD per share) | $ 1,000 | |
Carrying Value | $ 585 | $ 585 |
Dividend Rate in Effect | 6.00% | |
Series D Preferred Stock [Member] | ||
Class of Stock [Line Items] | ||
Shares issued (in shares) | 750,000 | 750,000 |
Shares outstanding (in shares) | 750,000 | 750,000 |
Liquidation preference (USD per share) | $ 1,000 | |
Carrying Value | $ 728 | $ 728 |
Dividend Rate in Effect | 5.95% | |
Series A Preferred Stock [Member] | ||
Class of Stock [Line Items] | ||
Shares issued (in shares) | 400,000 | 400,000 |
Shares outstanding (in shares) | 400,000 | 400,000 |
Liquidation preference (USD per share) | $ 1,000 | |
Carrying Value | $ 397 | $ 397 |
Dividend Rate in Effect | 7.00% | |
Series A Preferred Stock [Member] | LIBOR [Member] | ||
Class of Stock [Line Items] | ||
Floating Annual Rate | 4.82% | |
Series E Preferred Stock [Member] | ||
Class of Stock [Line Items] | ||
Shares issued (in shares) | 6,000 | 6,000 |
Shares outstanding (in shares) | 6,000 | 6,000 |
Liquidation preference (USD per share) | $ 100,000 | |
Carrying Value | $ 591 | $ 591 |
Dividend Rate in Effect | 4.625% | |
Series E Preferred Stock [Member] | LIBOR [Member] | ||
Class of Stock [Line Items] | ||
Floating Annual Rate | 3.315% | |
Series F Preferred Stock [Member] | ||
Class of Stock [Line Items] | ||
Shares issued (in shares) | 5,000 | 0 |
Shares outstanding (in shares) | 5,000 | 0 |
Liquidation preference (USD per share) | $ 100,000 | |
Carrying Value | $ 492 | $ 0 |
Dividend Rate in Effect | 5.00% | |
Series F Preferred Stock [Member] | LIBOR [Member] | ||
Class of Stock [Line Items] | ||
Floating Annual Rate | 2.575% |
Accumulated Other Comprehensi96
Accumulated Other Comprehensive Income (Components of Other Comprehensive Income (Loss)) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Other comprehensive income (loss) before tax | |||
Net unrealized gain (loss) | $ 13 | $ (44) | $ (477) |
Reclassification of net unrealized loss transferred to held to maturity | 227 | 0 | 0 |
Other reclassifications included in other revenue | (12) | (4) | 0 |
Change in net unrealized gain (loss) on held to maturity securities: | |||
Reclassification of net unrealized loss transferred from available for sale | (227) | 0 | 0 |
Amortization of amounts previously recorded upon transfer from available for sale | 31 | 0 | 0 |
Other | (11) | 1 | 0 |
Other comprehensive income (loss), before tax | 21 | (47) | (477) |
Tax effect | |||
Net unrealized gain (loss) | (7) | 16 | 178 |
Reclassification of net unrealized loss on securities transferred to held to maturity | (85) | 0 | 0 |
Other reclassifications included in other revenue | 4 | 2 | 0 |
Change in net unrealized gain (loss) on held to maturity securities: | |||
Reclassification of net unrealized loss on securities transferred from available for sale (1) | 85 | 0 | 0 |
Amortization of amounts previously recorded upon transfer from available for sale | (11) | 0 | 0 |
Other | 4 | 0 | 0 |
Other comprehensive income (loss) | (10) | 18 | 178 |
Net of tax | |||
Net unrealized gain (loss) | 6 | (28) | (299) |
Reclassification of net unrealized loss on securities transferred to held to maturity | 142 | 0 | 0 |
Other reclassifications included in other revenue | (8) | (2) | 0 |
Change in net unrealized gain (loss) on held to maturity securities: | |||
Reclassification of net unrealized loss on securities transferred from available for sale | (142) | 0 | 0 |
Amortization of amounts previously recorded upon transfer from available for sale | 20 | 0 | 0 |
Other | (7) | 1 | 0 |
Other comprehensive income (loss), net of tax | $ 11 | $ (29) | $ (299) |
Accumulated Other Comprehensi97
Accumulated Other Comprehensive Income (Accumulated Other Comprehensive Income Balances) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Accumulated Other Comprehensive Income | |||
Beginning Balance | $ (163) | $ (134) | $ 165 |
Other net changes | 11 | (29) | (299) |
Ending Balance | (152) | (163) | (134) |
Net unrealized gain (loss) on available for sale securities [Member] | |||
Accumulated Other Comprehensive Income | |||
Other net changes | 6 | (30) | $ (299) |
Other [Member] | |||
Accumulated Other Comprehensive Income | |||
Other net changes | (7) | $ 1 | |
Reclassification of Securities Transferred to Held to Maturity [Member] | |||
Accumulated Other Comprehensive Income | |||
Other net changes | 142 | ||
Other Reclassifications in Other Revenue Available for Sale Securities [Member] | |||
Accumulated Other Comprehensive Income | |||
Other net changes | (8) | ||
Reclassification of Securities Transferred from Available for Sale [Member] | |||
Accumulated Other Comprehensive Income | |||
Other net changes | (142) | ||
Amortization of amounts previously recorded upon transfer to held to maturity from available for sale [Member] | |||
Accumulated Other Comprehensive Income | |||
Other net changes | $ 20 |
Employee Incentive, Retiremen98
Employee Incentive, Retirement, Deferred Compensation, and Career Achievement Plans (Stock-Based Compensation Expense and Related Income Tax Benefit) (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total share-based compensation expense | $ 153 | $ 141 | $ 135 | |
Income tax benefit on share-based compensation expense | (57) | (53) | (51) | |
Income tax benefit | [1] | (1,296) | (1,104) | (832) |
Accounting Standards Update 2016-09 [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Income tax benefit | 87 | |||
Stock option [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total share-based compensation expense | 50 | 45 | 46 | |
Restricted stock unit [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total share-based compensation expense | 94 | 89 | 83 | |
Employee stock purchase plan [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total share-based compensation expense | $ 9 | $ 7 | $ 6 | |
[1] | Includes the prospective adoption of ASU 2016-09 in 2017. See New Accounting Standards in Note 2 for additional information. Taxes on income were increased by approximately $46 million in December 2017 due to the enactment of the Tax Cuts and Jobs Act legislation resulting in the remeasurement of deferred tax assets and other tax adjustments. |
Employee Incentive, Retiremen99
Employee Incentive, Retirement, Deferred Compensation, and Career Achievement Plans (Employee Incentive Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares of common stock authorized to be granted under the existing stock incentive plan (in shares) | 44,000,000 | ||
Total unrecognized compensation cost, net of forfeitures, related to outstanding stock options, restricted stock awards, and restricted stock units | $ 268 | ||
Stock option [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Remaining weighted-average period for unrecognized compensation cost, net of forfeitures, related to outstanding stock options, restricted stock awards, and restricted stock units | 1 year 10 months 24 days | ||
Restricted stock unit [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Remaining weighted-average period for unrecognized compensation cost, net of forfeitures, related to outstanding stock options, restricted stock awards, and restricted stock units | 2 years 4 months 24 days | ||
Total fair value of restricted stock awards vested | $ 127 | $ 105 | $ 126 |
Performance Shares [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Remaining weighted-average period for unrecognized compensation cost, net of forfeitures, related to outstanding stock options, restricted stock awards, and restricted stock units | 3 months 18 days | ||
Employee stock purchase plan [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares reserved for future issuance under the ESPP (in shares) | 37,000,000 | ||
Minimum [Member] | Restricted stock unit [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting period | 3 years | ||
Minimum [Member] | Stock option plan [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting period | 1 year | ||
Maximum [Member] | Restricted stock unit [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting period | 5 years | ||
Maximum [Member] | Stock option plan [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Period from the date of grant in which stock options expire | 10 years | ||
Award vesting period | 4 years |
Employee Incentive, Retireme100
Employee Incentive, Retirement, Deferred Compensation, and Career Achievement Plans (Stock Option Activity) (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Number of Options | ||
Beginning balance (in shares) | 37 | |
Granted (in shares) | 4 | |
Exercised (in shares) | (9) | |
Forfeited (in shares) | 0 | |
Expired (in shares) | 0 | |
Ending balance (in shares) | 32 | 37 |
Vested and expected to vest (in shares) | 31 | |
Vested and exercisable (in shares) | 20 | |
Weighted- Average Exercise Price per Share | ||
Beginning balance (USD per share) | $ 22.12 | |
Granted (USD per share) | 43.71 | |
Exercised (USD per share) | 18.20 | |
Forfeited (USD per share) | 31.02 | |
Expired (USD per share) | 24.82 | |
Ending balance (USD per share) | 26.16 | $ 22.12 |
Vested and expected to vest (USD per share) | 26.02 | |
Vested and exercisable (USD per share) | $ 20.82 | |
Weighted-Average Remaining Contractual Life | ||
Outstanding | 6 years 4 months 17 days | 6 years 6 months |
Vested and expected to vest | 6 years 4 months 6 days | |
Vested and exercisable | 5 years 7 days | |
Aggregate Intrinsic Value | ||
Outstanding | $ 814 | $ 649 |
Vested and expected to vest | 811 | |
Vested and exercisable | $ 612 |
Employee Incentive, Retireme101
Employee Incentive, Retirement, Deferred Compensation, and Career Achievement Plans (Information on Stock Options Granted and Exercised) (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Retirement Benefits [Abstract] | |||
Weighted-average fair value of options granted per share (USD per share) | $ 13.04 | $ 8.73 | $ 8.56 |
Cash received from options exercised | $ 171 | $ 144 | $ 90 |
Tax benefit realized on options exercised | 70 | 38 | 22 |
Aggregate intrinsic value of options exercised | $ 241 | $ 149 | $ 90 |
Employee Incentive, Retireme102
Employee Incentive, Retirement, Deferred Compensation, and Career Achievement Plans (Assumptions Used to Value Options Granted and Their Expected Lives) (Details) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Weighted-average expected dividend yield | 1.06% | 1.22% | 1.22% |
Weighted-average expected volatility | 34.00% | 30.00% | 28.00% |
Weighted-average risk-free interest rate | 2.10% | 1.80% | 2.20% |
Minimum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected life | 4 years 1 month 6 days | 4 years 8 months 12 days | 4 years 8 months 12 days |
Maximum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected life | 5 years 3 months 18 days | 7 years 3 months 18 days | 7 years 6 months |
Employee Incentive, Retireme103
Employee Incentive, Retirement, Deferred Compensation, and Career Achievement Plans (Restricted Stock Units Activity) (Details) - Restricted stock unit [Member] shares in Millions | 12 Months Ended |
Dec. 31, 2017$ / sharesshares | |
Number of Units | |
Outstanding Beginning Balance (in shares) | shares | 8 |
Granted (in shares) | shares | 2 |
Vested (in shares) | shares | (3) |
Forfeited (in shares) | shares | 0 |
Outstanding Ending Balance (in shares) | shares | 7 |
Weighted- Average Grant Date Fair Value per Unit | |
Outstanding Beginning Balance (USD per share) | $ / shares | $ 29.41 |
Granted (USD per share) | $ / shares | 44.23 |
Vested (USD per share) | $ / shares | 28.15 |
Forfeited (USD per share) | $ / shares | 30.86 |
Outstanding Ending Balance (USD per share) | $ / shares | $ 35.16 |
Employee Incentive, Retireme104
Employee Incentive, Retirement, Deferred Compensation, and Career Achievement Plans (Retirement and Deferred Compensation Plans Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Retirement Benefits [Abstract] | |||
Company's total contribution expense | $ 92 | $ 83 | $ 78 |
Deferred compensation liability | $ 160 | $ 135 |
Employee Incentive, Retireme105
Employee Incentive, Retirement, Deferred Compensation, and Career Achievement Plans (Schedule of Changes in Projected Benefit Obligations) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||
Projected benefit obligation at beginning of year | $ 26 | $ 17 | |
Benefit cost | 9 | 7 | $ 8 |
Actuarial (gain)/loss | 9 | 2 | |
Projected benefit obligation at the end of year | $ 44 | $ 26 | $ 17 |
Employee Incentive, Retireme106
Employee Incentive, Retirement, Deferred Compensation, and Career Achievement Plans (Schedule of Net Benefit Costs) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Retirement Benefits [Abstract] | |||
Service cost | $ 8 | $ 6 | $ 8 |
Interest cost | 1 | 1 | 0 |
Net benefit cost | $ 9 | $ 7 | $ 8 |
Employee Incentive, Retireme107
Employee Incentive, Retirement, Deferred Compensation, and Career Achievement Plans (Schedule of Assumptions Used) (Details) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Retirement Benefits [Abstract] | |||
Discount rate | 3.71% | 4.62% | 4.19% |
Rate of compensation increase | 3.00% | 3.00% | 3.00% |
Investment crediting rate for notional account balances | 6.50% | 6.50% | 6.50% |
Employee Incentive, Retireme108
Employee Incentive, Retirement, Deferred Compensation, and Career Achievement Plans (Schedule of Components and Amounts Impacting AOCI) (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | |
Accumulated Other Comprehensive Income | ||||
Beginning balance | $ 1 | $ 0 | ||
Actuarial gain/(loss) | (11) | 1 | ||
Ending balance | (10) | 1 | ||
Net gain/(loss) | $ (10) | $ 1 | ||
Amount recognized in AOCI | $ 1 | $ 0 | (10) | 1 |
Tax effect | 4 | 0 | ||
Net amount recognized in AOCI | $ (6) | $ 1 |
Taxes on Income (Narrative) (De
Taxes on Income (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | ||||
Remeasurement of net deferred tax assets | $ 46 | $ 46 | ||
Unrecognized tax benefits | 111 | 111 | $ 93 | $ 48 |
Unrecognized tax benefits that, if recognized, would affect the annual effective tax rate | 104 | 104 | 85 | |
Unrecognized tax benefits, interest and penalties accrued | $ 5 | $ 5 | $ 8 |
Taxes on Income (Income Tax Exp
Taxes on Income (Income Tax Expense) (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||
Current: | ||||
Federal | $ 1,132 | $ 980 | $ 740 | |
State | 106 | 109 | 99 | |
Total current | 1,238 | 1,089 | 839 | |
Deferred: | ||||
Federal | 58 | 13 | (6) | |
State | 0 | 2 | (1) | |
Total deferred | 58 | 15 | (7) | |
Taxes on income | [1] | $ 1,296 | $ 1,104 | $ 832 |
[1] | Includes the prospective adoption of ASU 2016-09 in 2017. See New Accounting Standards in Note 2 for additional information. Taxes on income were increased by approximately $46 million in December 2017 due to the enactment of the Tax Cuts and Jobs Act legislation resulting in the remeasurement of deferred tax assets and other tax adjustments. |
Taxes on Income (Temporary Diff
Taxes on Income (Temporary Differences That Created Deferred Tax Assets and Liabilities) (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Deferred tax assets: | ||
Employee compensation, severance, and benefits | $ 133 | $ 216 |
Net unrealized loss on available for sale securities | 57 | 97 |
Reserves and allowances | 15 | 25 |
Facilities lease commitments | 14 | 25 |
State and local taxes | 12 | 17 |
Net operating loss carryforwards | 5 | 5 |
Other | 3 | 0 |
Total deferred tax assets | 239 | 385 |
Valuation allowance | (2) | (3) |
Deferred tax assets — net of valuation allowance | 237 | 382 |
Deferred tax liabilities: | ||
Capitalized internal-use software development costs | (89) | (118) |
Depreciation and amortization | (72) | (114) |
Other | 0 | (7) |
Total deferred tax liabilities | (161) | (239) |
Deferred tax asset – net | $ 76 | $ 143 |
Taxes on Income (Reconciliation
Taxes on Income (Reconciliation of Federal Statutory Income Tax Rate to Effective Income Tax Rate) (Details) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |||
Federal statutory income tax rate | 35.00% | 35.00% | 35.00% |
State income taxes, net of federal tax benefit | 2.20% | 2.40% | 2.60% |
Equity compensation benefit | (2.40%) | 0.00% | 0.00% |
Other | 0.70% | (0.50%) | (1.10%) |
Effective income tax rate | 35.50% | 36.90% | 36.50% |
Taxes on Income (Reconciliat113
Taxes on Income (Reconciliation of Beginning and Ending Amount of Unrecognized Tax Benefits) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | ||
Balance at beginning of year | $ 93 | $ 48 |
Additions for tax positions related to the current year | 22 | 16 |
Additions for tax positions related to prior years | 15 | 32 |
Reductions for tax positions related to prior years | (2) | (2) |
Reductions due to lapse of statute of limitations | 0 | 0 |
Reductions for settlements with tax authorities | (17) | (1) |
Balance at end of year | $ 111 | $ 93 |
Earnings Per Common Share (EPS
Earnings Per Common Share (EPS under Basic and Diluted Computations) (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |||||
Earnings Per Share [Abstract] | |||||||||||||||
Net income | $ 597 | $ 618 | $ 575 | $ 564 | $ 522 | $ 503 | $ 452 | $ 412 | $ 2,354 | $ 1,889 | $ 1,447 | ||||
Preferred stock dividends and other | [1] | (174) | (143) | (83) | |||||||||||
Net Income Available to Common Stockholders | $ 550 | $ 575 | $ 530 | $ 525 | $ 478 | $ 470 | $ 406 | $ 392 | $ 2,180 | $ 1,746 | $ 1,364 | ||||
Weighted Average Common Shares Outstanding - Basic (in shares) | 1,343 | 1,339 | 1,338 | 1,336 | 1,329 | 1,324 | 1,322 | 1,321 | 1,339 | 1,324 | 1,315 | ||||
Common stock equivalent shares related to stock incentive plans (in shares) | 14 | 10 | 12 | ||||||||||||
Weighted-average common shares outstanding — diluted (in shares) | 1,358 | 1,353 | 1,351 | 1,351 | 1,341 | 1,334 | 1,333 | 1,330 | 1,353 | [2] | 1,334 | [2] | 1,327 | [2] | |
Basic EPS (USD per share) | $ 0.41 | $ 0.43 | $ 0.40 | $ 0.39 | $ 0.36 | $ 0.36 | $ 0.31 | $ 0.30 | $ 1.63 | $ 1.32 | $ 1.04 | ||||
Diluted EPS (USD per share) | $ 0.41 | $ 0.42 | $ 0.39 | $ 0.39 | $ 0.36 | $ 0.35 | $ 0.30 | $ 0.29 | $ 1.61 | $ 1.31 | $ 1.03 | ||||
Antidilutive stock options and restricted stock units excluded from the calculation of diluted EPS (n shares) | 15 | 26 | 23 | ||||||||||||
[1] | Includes preferred stock dividends and undistributed earnings and dividends allocated to non-vested restricted stock units. | ||||||||||||||
[2] | Antidilutive stock options and restricted stock units excluded from the calculation of diluted EPS totaled 15 million, 26 million, and 23 million shares in 2017, 2016, and 2015, respectively. |
Regulatory Requirements (Regula
Regulatory Requirements (Regulatory Capital and Ratios) (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
CSC [Member] | ||
Common Equity Tier 1 Risk-Based Capital | ||
Actual Amount | $ 14,630 | $ 12,574 |
Actual Ratio | 19.30% | 18.40% |
Minimum Capital Requirement | $ 3,414 | $ 3,068 |
Minimum Capital Requirement Ratio | 4.50% | 4.50% |
Tier 1 Risk-Based Capital | ||
Actual Amount | $ 17,423 | $ 15,357 |
Actual Ratio | 23.00% | 22.50% |
Minimum Capital Requirement Amount | $ 4,552 | $ 4,091 |
Minimum Capital Requirement Ratio | 6.00% | 6.00% |
Total Risk-Based Capital | ||
Actual Amount | $ 17,452 | $ 15,384 |
Actual Ratio | 23.00% | 22.60% |
Minimum Capital Requirement Amount | $ 6,069 | $ 5,454 |
Minimum Capital Requirement Ratio | 8.00% | 8.00% |
Tier 1 Leverage | ||
Actual Amount | $ 17,423 | $ 15,357 |
Actual Ratio | 7.60% | 7.20% |
Minimum Capital Requirement Amount | $ 9,218 | $ 8,516 |
Minimum Capital Requirement Ratio | 4.00% | 4.00% |
Schwab Bank [Member] | ||
Common Equity Tier 1 Risk-Based Capital | ||
Actual Amount | $ 13,355 | $ 11,878 |
Actual Ratio | 20.10% | 19.80% |
Minimum to be Well Capitalized | $ 4,324 | $ 3,894 |
Minimum to be Well Capitalized Ratio | 6.50% | 6.50% |
Minimum Capital Requirement | $ 2,993 | $ 2,696 |
Minimum Capital Requirement Ratio | 4.50% | 4.50% |
Tier 1 Risk-Based Capital | ||
Actual Amount | $ 13,355 | $ 11,878 |
Actual Ratio | 20.10% | 19.80% |
Minimum to be Well Capitalized Amount | $ 5,321 | $ 4,793 |
Minimum to be Well Capitalized Ratio | 8.00% | 8.00% |
Minimum Capital Requirement Amount | $ 3,991 | $ 3,595 |
Minimum Capital Requirement Ratio | 6.00% | 6.00% |
Total Risk-Based Capital | ||
Actual Amount | $ 13,382 | $ 11,904 |
Actual Ratio | 20.10% | 19.90% |
Minimum to be Well Capitalized Amount | $ 6,652 | $ 5,992 |
Minimum to be Well Capitalized Ratio | 10.00% | 10.00% |
Minimum Capital Requirement Amount | $ 5,321 | $ 4,793 |
Minimum Capital Requirement Ratio | 8.00% | 8.00% |
Tier 1 Leverage | ||
Actual Amount | $ 13,355 | $ 11,878 |
Actual Ratio | 7.10% | 7.00% |
Minimum to be Well Capitalized Amount | $ 9,462 | $ 8,456 |
Minimum to be Well Capitalized Ratio | 5.00% | 5.00% |
Minimum Capital Requirement Amount | $ 7,569 | $ 6,765 |
Minimum Capital Requirement Ratio | 4.00% | 4.00% |
Regulatory Requirements (Narrat
Regulatory Requirements (Narrative) (Details) - USD ($) $ in Thousands | Jan. 03, 2018 | Dec. 31, 2017 | Jan. 04, 2017 | Dec. 31, 2016 | Jan. 01, 2016 |
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | |||||
Schwab Bank's average reserve requirement | $ 1,600,000 | $ 1,500,000 | |||
Required capital conservation buffer of risk-weighted assets | 0.625% | ||||
Capital convservation buffer of risk-weighted assets annual increase | 0.625% | ||||
Capital conservation buffer of risk-weighted assets when fully implemented | 2.50% | ||||
Percentage of aggregate debit balances required as minimum net capital | 2.00% | ||||
Minimum capital requirement | $ 250 | 250 | |||
Percentage of net capital to aggregate debit balances required for a broker-dealer to repay subordinated borrowings, pay cash dividends, or make any unsecured advances or loans to its parent company or employees | 5.00% | ||||
Percentage of net capital to the Company's minimum dollar requirement required for a broker-dealer to repay subordinated borrowings, pay cash dividends, or make any unsecured advances or loans to its parent company or employees | 120.00% | ||||
Cash and investments required to be segregated and on deposit for regulatory purposes | $ 15,300,000 | $ 22,500,000 | |||
Reserve Deposit [Member] | |||||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | |||||
Net amount of segregated cash deposited into segregated reserve bank accounts | $ 1,600,000 | ||||
Reserve Deposit [Member] | Subsequent Event [Member] | |||||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | |||||
Net amount of segregated cash deposited into segregated reserve bank accounts | $ 704,000 | ||||
CS&Co [Member] | |||||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | |||||
Minimum capital requirement | $ 250 |
Regulatory Requirements (Net Ca
Regulatory Requirements (Net Capital and Net Capital Requirements for CS&Co) (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Banking and Thrift [Abstract] | ||
Net capital | $ 2,118,000 | $ 1,846,000 |
Minimum net capital required | 250 | 250 |
2% of Aggregate Debit Balances | 435,000 | 355,000 |
Net capital in excess of required net capital | $ 1,683,000 | $ 1,491,000 |
Segment Information (Narrative)
Segment Information (Narrative) (Details) | 12 Months Ended |
Dec. 31, 2017segment | |
Segment Reporting [Abstract] | |
Number of reportable segments | 2 |
Segment Information (Financial
Segment Information (Financial Information for Reportable Segments) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||
Net Revenues: | ||||||||||||
Net interest revenue | $ 4,282 | $ 3,322 | $ 2,525 | |||||||||
Asset management and administration fees | [1] | 3,392 | 3,055 | 2,650 | ||||||||
Trading revenue | 654 | 825 | 866 | |||||||||
Other | 290 | 271 | 328 | |||||||||
Provision for loan losses | 0 | 5 | 11 | |||||||||
Total net revenues | $ 2,242 | $ 2,165 | $ 2,130 | $ 2,081 | $ 1,972 | $ 1,914 | $ 1,828 | $ 1,764 | 8,618 | 7,478 | 6,380 | |
Total Expenses Excluding Interest | $ 1,289 | $ 1,220 | $ 1,221 | $ 1,238 | $ 1,148 | $ 1,120 | $ 1,108 | $ 1,109 | 4,968 | 4,485 | 4,101 | |
Income before taxes on income | 3,650 | 2,993 | 2,279 | |||||||||
Capital expenditures | 412 | 353 | 285 | |||||||||
Depreciation and amortization | 269 | 234 | 224 | |||||||||
Investor Services [Member] | ||||||||||||
Net Revenues: | ||||||||||||
Net interest revenue | 3,231 | 2,591 | 2,133 | |||||||||
Asset management and administration fees | 2,344 | 2,093 | 1,837 | |||||||||
Trading revenue | 408 | 524 | 556 | |||||||||
Other | 217 | 199 | 234 | |||||||||
Provision for loan losses | 0 | 4 | 11 | |||||||||
Total net revenues | 6,200 | 5,411 | 4,771 | |||||||||
Total Expenses Excluding Interest | 3,725 | 3,380 | 3,090 | |||||||||
Income before taxes on income | 2,475 | 2,031 | 1,681 | |||||||||
Capital expenditures | 265 | 234 | 195 | |||||||||
Depreciation and amortization | 203 | 180 | 171 | |||||||||
Advisor Services [Member] | ||||||||||||
Net Revenues: | ||||||||||||
Net interest revenue | 1,051 | 731 | 392 | |||||||||
Asset management and administration fees | 1,048 | 962 | 813 | |||||||||
Trading revenue | 246 | 301 | 310 | |||||||||
Other | 73 | 72 | 94 | |||||||||
Provision for loan losses | 0 | 1 | 0 | |||||||||
Total net revenues | 2,418 | 2,067 | 1,609 | |||||||||
Total Expenses Excluding Interest | 1,243 | 1,105 | 1,011 | |||||||||
Income before taxes on income | 1,175 | 962 | 598 | |||||||||
Capital expenditures | 147 | 119 | 90 | |||||||||
Depreciation and amortization | $ 66 | $ 54 | $ 53 | |||||||||
[1] | Includes fee waivers of $10 million, $224 million, and $672 million during the years ended December 31, 2017, 2016, and 2015, respectively, relating to Schwab-sponsored money market funds. |
The Charles Schwab Corporati120
The Charles Schwab Corporation – Parent Company Only Financial Statements (Condensed Statements of Income) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||
Condensed Income Statements, Captions [Line Items] | ||||||||||||
Interest revenue | $ 4,624 | $ 3,493 | $ 2,657 | |||||||||
Interest expense | (342) | (171) | (132) | |||||||||
Net interest revenue | 4,282 | 3,322 | 2,525 | |||||||||
Other | 290 | 271 | 328 | |||||||||
Expenses excluding interest | $ (1,289) | $ (1,220) | $ (1,221) | $ (1,238) | $ (1,148) | $ (1,120) | $ (1,108) | $ (1,109) | (4,968) | (4,485) | (4,101) | |
Income tax benefit | [1] | (1,296) | (1,104) | (832) | ||||||||
Equity in net income of subsidiaries: | ||||||||||||
Net Income | 597 | 618 | 575 | 564 | 522 | 503 | 452 | 412 | 2,354 | 1,889 | 1,447 | |
Preferred stock dividends and other | [2] | 174 | 143 | 83 | ||||||||
Net Income Available to Common Stockholders | $ 550 | $ 575 | $ 530 | $ 525 | $ 478 | $ 470 | $ 406 | $ 392 | 2,180 | 1,746 | 1,364 | |
Parent Company [Member] | ||||||||||||
Condensed Income Statements, Captions [Line Items] | ||||||||||||
Interest revenue | 33 | 22 | 12 | |||||||||
Interest expense | (114) | (100) | (86) | |||||||||
Net interest revenue | (81) | (78) | (74) | |||||||||
Other | 3 | 1 | 4 | |||||||||
Expenses excluding interest | (32) | (21) | (27) | |||||||||
Loss before income tax benefit and equity in net income of subsidiaries | (110) | (98) | (97) | |||||||||
Income tax benefit | 27 | 34 | 41 | |||||||||
Loss before equity in net income of subsidiaries | (83) | (64) | (56) | |||||||||
Equity in net income of subsidiaries: | ||||||||||||
Equity in undistributed net income of subsidiaries | 1,479 | 1,690 | 1,287 | |||||||||
Dividends from bank subsidiary | 625 | 0 | 0 | |||||||||
Dividends from non-bank subsidiaries | 333 | 263 | 216 | |||||||||
Net Income | 2,354 | 1,889 | 1,447 | |||||||||
Preferred stock dividends and other | 174 | 143 | 83 | |||||||||
Net Income Available to Common Stockholders | $ 2,180 | $ 1,746 | $ 1,364 | |||||||||
[1] | Includes the prospective adoption of ASU 2016-09 in 2017. See New Accounting Standards in Note 2 for additional information. Taxes on income were increased by approximately $46 million in December 2017 due to the enactment of the Tax Cuts and Jobs Act legislation resulting in the remeasurement of deferred tax assets and other tax adjustments. | |||||||||||
[2] | Includes preferred stock dividends and undistributed earnings and dividends allocated to non-vested restricted stock units. |
The Charles Schwab Corporati121
The Charles Schwab Corporation – Parent Company Only Financial Statements (Condensed Balance Sheets) (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Assets | ||||
Cash and cash equivalents | $ 14,217 | $ 10,828 | $ 11,978 | $ 11,363 |
Held to maturity securities | 120,926 | 75,203 | ||
Other securities owned — at fair value | 539 | 449 | ||
Other assets | 1,949 | 1,408 | ||
Total assets | 243,274 | 223,383 | ||
Liabilities and Stockholders’ Equity | ||||
Accrued expenses and other liabilities | 2,810 | 2,331 | ||
Long-term debt | 4,753 | 2,876 | ||
Total liabilities | 224,749 | 206,962 | ||
Stockholders’ equity | 18,525 | 16,421 | 13,402 | 11,803 |
Total liabilities and stockholders’ equity | 243,274 | 223,383 | ||
Parent Company [Member] | ||||
Assets | ||||
Cash and cash equivalents | 2,825 | 1,189 | $ 1,007 | $ 1,043 |
Receivables from subsidiaries | 571 | 503 | ||
Available for sale securities | 573 | 569 | ||
Held to maturity securities | 223 | 223 | ||
Other securities owned — at fair value | 76 | 75 | ||
Loans to non-bank subsidiaries | 448 | 0 | ||
Investment in non-bank subsidiaries | 5,393 | 5,044 | ||
Investment in bank subsidiary | 13,224 | 11,726 | ||
Other assets | 160 | 124 | ||
Total assets | 23,493 | 19,453 | ||
Liabilities and Stockholders’ Equity | ||||
Accrued expenses and other liabilities | 276 | 219 | ||
Payables to subsidiaries | 0 | 6 | ||
Long-term debt | 4,692 | 2,807 | ||
Total liabilities | 4,968 | 3,032 | ||
Stockholders’ equity | 18,525 | 16,421 | ||
Total liabilities and stockholders’ equity | $ 23,493 | $ 19,453 |
The Charles Schwab Corporati122
The Charles Schwab Corporation – Parent Company Only Financial Statements (Condensed Statements of Cash Flows) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Cash Flows from Operating Activities | |||||||||||
Net income | $ 597 | $ 618 | $ 575 | $ 564 | $ 522 | $ 503 | $ 452 | $ 412 | $ 2,354 | $ 1,889 | $ 1,447 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||
Other | 51 | 9 | (4) | ||||||||
Net change in: | |||||||||||
Other securities owned | (90) | 84 | (17) | ||||||||
Other assets | (177) | (93) | (98) | ||||||||
Accrued expenses and other liabilities | 421 | 167 | 304 | ||||||||
Net cash provided by operating activities | 1,263 | 2,662 | 1,246 | ||||||||
Cash Flows from Investing Activities | |||||||||||
Purchases of available for sale securities | (15,033) | (29,248) | (21,351) | ||||||||
Proceeds from sales of available for sale securities | 8,617 | 5,537 | 2,424 | ||||||||
Principal payments on available for sale securities | 9,095 | 11,903 | 7,340 | ||||||||
Purchases of held to maturity securities | (32,925) | (31,162) | (19,303) | ||||||||
Other investing activities | (59) | (39) | (35) | ||||||||
Net cash used for investing activities | (20,473) | (38,775) | (28,623) | ||||||||
Cash Flows from Financing Activities | |||||||||||
Issuance of long-term debt | 2,129 | 0 | 1,346 | ||||||||
Repayment of long-term debt | (257) | (7) | (357) | ||||||||
Net proceeds from preferred stock offerings | 492 | 1,316 | 581 | ||||||||
Redemption of preferred stock | (485) | 0 | 0 | ||||||||
Dividends paid | (592) | (486) | (387) | ||||||||
Proceeds from stock options exercised and other | 171 | 144 | 90 | ||||||||
Other financing activities | (45) | 44 | 32 | ||||||||
Net cash provided by financing activities | 22,599 | 34,963 | 27,992 | ||||||||
Increase (Decrease) in Cash and Cash Equivalents | 3,389 | (1,150) | 615 | ||||||||
Cash and Cash Equivalents at Beginning of Year | 10,828 | 11,978 | 10,828 | 11,978 | 11,363 | ||||||
Cash and Cash Equivalents at End of Year | 14,217 | 10,828 | 14,217 | 10,828 | 11,978 | ||||||
Parent Company [Member] | |||||||||||
Cash Flows from Operating Activities | |||||||||||
Net income | 2,354 | 1,889 | 1,447 | ||||||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||
Equity in undistributed earnings of subsidiaries | (1,479) | (1,690) | (1,287) | ||||||||
Other | 5 | (37) | (31) | ||||||||
Net change in: | |||||||||||
Other securities owned | (1) | (10) | 9 | ||||||||
Other assets | (26) | (27) | (32) | ||||||||
Accrued expenses and other liabilities | 44 | 30 | 4 | ||||||||
Net cash provided by operating activities | 897 | 155 | 110 | ||||||||
Cash Flows from Investing Activities | |||||||||||
Due from (to) subsidiaries — net | (374) | 95 | 93 | ||||||||
Increase in investments in subsidiaries | (342) | (1,547) | (611) | ||||||||
Repayments (Advances) of subordinated loan to CS&Co | 0 | 465 | (150) | ||||||||
Purchases of available for sale securities | (201) | (2) | (842) | ||||||||
Proceeds from sales of available for sale securities | 197 | 2 | 200 | ||||||||
Principal payments on available for sale securities | 0 | 0 | 75 | ||||||||
Purchases of held to maturity securities | 0 | 0 | (223) | ||||||||
Other investing activities | (6) | (4) | 0 | ||||||||
Net cash used for investing activities | (726) | (991) | (1,458) | ||||||||
Cash Flows from Financing Activities | |||||||||||
Issuance of long-term debt | 2,129 | 0 | 1,346 | ||||||||
Repayment of long-term debt | (250) | 0 | (350) | ||||||||
Net proceeds from preferred stock offerings | 492 | 1,316 | 581 | ||||||||
Redemption of preferred stock | (485) | 0 | 0 | ||||||||
Dividends paid | (592) | (486) | (387) | ||||||||
Proceeds from stock options exercised and other | 171 | 144 | 90 | ||||||||
Other financing activities | 0 | 44 | 32 | ||||||||
Net cash provided by financing activities | 1,465 | 1,018 | 1,312 | ||||||||
Increase (Decrease) in Cash and Cash Equivalents | 1,636 | 182 | (36) | ||||||||
Cash and Cash Equivalents at Beginning of Year | $ 1,189 | $ 1,007 | 1,189 | 1,007 | 1,043 | ||||||
Cash and Cash Equivalents at End of Year | $ 2,825 | $ 1,189 | $ 2,825 | $ 1,189 | $ 1,007 |
Quarterly Financial Informat123
Quarterly Financial Information (Unaudited) (Schedule of Quarterly Financial Information) (Details) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||||
Dec. 31, 2017USD ($)$ / sharesshares | Sep. 30, 2017USD ($)$ / sharesshares | Jun. 30, 2017USD ($)$ / sharesshares | Mar. 31, 2017USD ($)$ / sharesshares | Dec. 31, 2016USD ($)$ / sharesshares | Sep. 30, 2016USD ($)$ / sharesshares | Jun. 30, 2016USD ($)$ / sharesshares | Mar. 31, 2016USD ($)$ / sharesshares | Dec. 31, 2017USD ($)$ / sharesshares | Dec. 31, 2016USD ($)$ / sharesshares | Dec. 31, 2015USD ($)$ / sharesshares | ||||
Quarterly Financial Information Disclosure [Abstract] | ||||||||||||||
Total Net Revenues | $ | $ 2,242 | $ 2,165 | $ 2,130 | $ 2,081 | $ 1,972 | $ 1,914 | $ 1,828 | $ 1,764 | $ 8,618 | $ 7,478 | $ 6,380 | |||
Total Expenses Excluding Interest | $ | 1,289 | 1,220 | 1,221 | 1,238 | 1,148 | 1,120 | 1,108 | 1,109 | 4,968 | 4,485 | 4,101 | |||
Net Income | $ | 597 | 618 | 575 | 564 | 522 | 503 | 452 | 412 | 2,354 | 1,889 | 1,447 | |||
Net Income Available to Common Stockholders | $ | $ 550 | $ 575 | $ 530 | $ 525 | $ 478 | $ 470 | $ 406 | $ 392 | $ 2,180 | $ 1,746 | $ 1,364 | |||
Weighted Average Common Shares Outstanding - Basic (in shares) | shares | 1,343 | 1,339 | 1,338 | 1,336 | 1,329 | 1,324 | 1,322 | 1,321 | 1,339 | 1,324 | 1,315 | |||
Weighted Average Common Shares Outstanding - Diluted (in shares) | shares | 1,358 | 1,353 | 1,351 | 1,351 | 1,341 | 1,334 | 1,333 | 1,330 | 1,353 | [1] | 1,334 | [1] | 1,327 | [1] |
Basic (USD per share) | $ 0.41 | $ 0.43 | $ 0.40 | $ 0.39 | $ 0.36 | $ 0.36 | $ 0.31 | $ 0.30 | $ 1.63 | $ 1.32 | $ 1.04 | |||
Diluted (USD per share) | 0.41 | 0.42 | 0.39 | 0.39 | 0.36 | 0.35 | 0.30 | 0.29 | 1.61 | 1.31 | 1.03 | |||
Dividends Declared Per Common Share (USD per share) | 0.08 | 0.08 | 0.08 | 0.08 | 0.07 | 0.07 | 0.07 | 0.06 | $ 0.32 | $ 0.27 | $ 0.24 | |||
Range of Common Stock Price Per Share: | ||||||||||||||
High (USD per share) | 52.52 | 44.35 | 44.10 | 43.65 | 40.58 | 31.87 | 31.07 | 32.23 | ||||||
Low (USD per share) | $ 42.20 | $ 38.06 | $ 37.16 | $ 37.62 | $ 30.66 | $ 23.83 | $ 24.02 | $ 21.51 | ||||||
Range of Price/Earnings Ratio: | ||||||||||||||
High | 33 | 28 | 30 | 31 | 31 | 26 | 27 | 29 | ||||||
Low | 26 | 24 | 25 | 27 | 24 | 20 | 21 | 20 | ||||||
[1] | Antidilutive stock options and restricted stock units excluded from the calculation of diluted EPS totaled 15 million, 26 million, and 23 million shares in 2017, 2016, and 2015, respectively. |
Subsequent Event (Details)
Subsequent Event (Details) - Senior Notes Due March 2018 [Member] - Senior Notes [Member] - USD ($) | Feb. 08, 2018 | Dec. 31, 2017 |
Subsequent Event [Line Items] | ||
Fixed interest rate | 1.50% | |
Subsequent Event [Member] | ||
Subsequent Event [Line Items] | ||
Fixed interest rate | 1.50% | |
Principal amount | $ 625,000,000 |