Document and Entity Information
Document and Entity Information - USD ($) $ in Billions | 12 Months Ended | ||
Dec. 31, 2018 | Jan. 31, 2019 | Jun. 30, 2018 | |
Document and Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2018 | ||
Document Fiscal Year Focus | 2,018 | ||
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 Emerging Growth Company | false | ||
Entity Small Business | false | ||
Entity Shell Company | false | ||
Entity Common Stock, Shares Outstanding | 1,332,893,531 | ||
Entity Public Float | $ 62.1 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) shares in Thousands, $ in Millions | 12 Months Ended | |||||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||||
Net Revenues | ||||||
Interest revenue | $ 6,680 | $ 4,624 | $ 3,493 | |||
Interest expense | (857) | (342) | (171) | |||
Net interest revenue | 5,823 | 4,282 | 3,322 | |||
Other | 317 | 290 | 276 | |||
Total net revenues | 10,132 | 8,618 | 7,478 | |||
Expenses Excluding Interest | ||||||
Compensation and benefits | 3,057 | 2,737 | 2,466 | |||
Professional services | 654 | 580 | 506 | |||
Occupancy and equipment | 496 | 436 | 398 | |||
Advertising and market development | 313 | 268 | 265 | |||
Communications | 242 | 231 | 237 | |||
Depreciation and amortization | 306 | 269 | [1] | 234 | [1] | |
Regulatory fees and assessments | 189 | 179 | 144 | |||
Other | 313 | 268 | 235 | |||
Total expenses excluding interest | 5,570 | 4,968 | 4,485 | |||
Income before taxes on income | 4,562 | 3,650 | 2,993 | |||
Taxes on income | 1,055 | 1,296 | 1,104 | |||
Net Income | 3,507 | 2,354 | [1] | 1,889 | [1] | |
Preferred stock dividends and other | [2] | 178 | 174 | 143 | ||
Net Income Available to Common Stockholders | $ 3,329 | $ 2,180 | $ 1,746 | |||
Weighted-Average Common Shares Outstanding: | ||||||
Basic (in shares) | 1,348,000 | 1,339,000 | 1,324,000 | |||
Diluted (in shares) | [3] | 1,361,000 | 1,353,250 | 1,334,000 | ||
Earnings Per Common Shares Outstanding: | ||||||
Basic (USD per share) | $ 2.47 | $ 1.63 | $ 1.32 | |||
Diluted (USD per share) | $ 2.45 | $ 1.61 | $ 1.31 | |||
Antidilutive stock options and restricted stock units excluded from the calculation of diluted EPS (n shares) | 18,000 | 15,000 | 26,000 | |||
Asset Management and administration fees [Member] | ||||||
Net Revenues | ||||||
Asset management and administration fees and Trading revenue | [4] | $ 3,229 | $ 3,392 | $ 3,055 | ||
Trading revenue [Member] | ||||||
Net Revenues | ||||||
Asset management and administration fees and Trading revenue | 763 | 654 | 825 | |||
Fee Waivers [Member] | Money market funds [Member] | ||||||
Net Revenues | ||||||
Asset management and administration fees and Trading revenue | $ 0 | $ 10 | $ 224 | |||
[1] | Adjusted for the retrospective adoption of ASU 2016-18. See Note 2. | |||||
[2] | Includes preferred stock dividends and undistributed earnings and dividends allocated to non-vested restricted stock units. | |||||
[3] | Antidilutive stock options and restricted stock units excluded from the calculation of diluted EPS totaled 18 million, 15 million, and 26 million shares in 2018, 2017, and 2016, respectively. | |||||
[4] | Includes fee waivers of $0, $10 million, and $224 million during the years ended December 31, 2018, 2017, and 2016, respectively, relating to Schwab-sponsored money market funds. |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 12 Months Ended | ||||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |||
Statement of Comprehensive Income [Abstract] | |||||
Net income | $ 3,507 | $ 2,354 | [1] | $ 1,889 | [1] |
Change in net unrealized gain (loss) on available for sale securities: | |||||
Net unrealized gain (loss) | (123) | 13 | (44) | ||
Reclassification of net unrealized loss transferred to held to maturity | 0 | 227 | 0 | ||
Other reclassifications included in other revenue | 0 | (12) | (4) | ||
Change in net unrealized gain (loss) on held to maturity securities: | |||||
Reclassification of net unrealized loss transferred from available for sale | 0 | (227) | 0 | ||
Amortization of amounts previously recorded upon transfer from available for sale | 35 | 31 | 0 | ||
Other | (1) | (11) | 1 | ||
Other comprehensive income (loss), before tax | (89) | 21 | (47) | ||
Income tax effect | 22 | (10) | 18 | ||
Other comprehensive income (loss), net of tax | (67) | 11 | (29) | ||
Comprehensive Income | $ 3,440 | $ 2,365 | $ 1,860 | ||
[1] | Adjusted for the retrospective adoption of ASU 2016-18. See Note 2. |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 | ||
Assets | ||||
Cash and cash equivalents | [1] | $ 27,938 | $ 14,217 | [2] |
Cash and investments segregated and on deposit for regulatory purposes (including resale agreements of $7,195 and $6,596 at December 31, 2018 and 2017, respectively) | 13,563 | 15,139 | ||
Receivables from brokers, dealers, and clearing organizations | 553 | 649 | ||
Receivables from brokerage clients — net | 21,651 | 20,576 | ||
Other securities owned — at fair value | 539 | 539 | ||
Available for sale securities | 66,578 | 49,995 | ||
Held to maturity securities | 144,009 | 120,926 | ||
Bank loans — net | 16,609 | 16,478 | ||
Equipment, office facilities, and property — net | 1,769 | 1,471 | ||
Goodwill | 1,227 | 1,227 | ||
Other assets | 2,046 | 2,057 | ||
Total assets | 296,482 | 243,274 | ||
Liabilities and Stockholders’ Equity | ||||
Bank deposits | 231,423 | 169,656 | ||
Payables to brokers, dealers, and clearing organizations | 1,831 | 1,287 | ||
Payables to brokerage clients | 32,726 | 31,243 | ||
Accrued expenses and other liabilities | 2,954 | 2,810 | ||
Short-term borrowings | 0 | 15,000 | ||
Long-term debt | 6,878 | 4,753 | ||
Total liabilities | 275,812 | 224,749 | ||
Stockholders’ equity: | ||||
Preferred stock — $.01 par value per share; aggregate liquidation preference of $2,850 | 2,793 | 2,793 | ||
Common stock — 3 billion shares authorized; $.01 par value per share; 1,487,543,446 shares issued | 15 | 15 | ||
Additional paid-in capital | 4,499 | 4,353 | ||
Retained earnings | 17,329 | 14,408 | ||
Treasury stock, at cost — 155,116,695 and 142,210,890 shares at December 31, 2018 and 2017, respectively | (3,714) | (2,892) | ||
Accumulated other comprehensive income (loss) | (252) | (152) | ||
Total stockholders’ equity | 20,670 | 18,525 | ||
Total liabilities and stockholders’ equity | $ 296,482 | $ 243,274 | ||
[1] | Reconciliation of cash, cash equivalents and amounts reported within the balance sheet | |||
[2] | Adjusted for the retrospective adoption of ASU 2016-18. See Note 2. |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Statement of Financial Position [Abstract] | ||
Cash and investments segregated and on deposit for regulatory purposes, resale agreements | $ 7,195 | $ 6,596 |
Preferred stock, par value (USD per share) | $ 0.01 | $ 0.01 |
Preferred stock, aggregate liquidation preference | $ 2,850 | $ 2,850 |
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) | 155,116,695 | 142,210,890 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 12 Months Ended | ||||||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |||||
Cash Flows from Operating Activities | |||||||
Net income | $ 3,507 | $ 2,354 | [1] | $ 1,889 | [1] | ||
Adjustments to reconcile net income to net cash (used for) provided by operating activities: | |||||||
Share-based compensation | 197 | 153 | [1] | 141 | [1] | ||
Depreciation and amortization | 306 | 269 | [1] | 234 | [1] | ||
Provision (benefit) for deferred income taxes | 49 | 58 | [1] | 15 | [1] | ||
Premium amortization, net, on available for sale and held to maturity securities | 350 | 342 | [1] | 266 | [1] | ||
Other | 137 | 51 | [1] | 4 | [1] | ||
Net change in: | |||||||
Investments segregated and on deposit for regulatory purposes | 6,922 | 4,933 | [1] | (1,635) | [1] | ||
Receivables from brokers, dealers, and clearing organizations | 96 | 74 | [1] | (147) | [1] | ||
Receivables from brokerage clients | (1,100) | (3,428) | [1] | 150 | [1] | ||
Other securities owned | 0 | (90) | [1] | 84 | [1] | ||
Other assets | (104) | (177) | [1] | (93) | [1] | ||
Payables to brokers, dealers, and clearing organizations | 573 | (1,148) | [1] | (181) | [1] | ||
Payables to brokerage clients | 1,483 | (4,651) | [1] | 2,709 | [1] | ||
Accrued expenses and other liabilities | 40 | 421 | [1] | 167 | [1] | ||
Net cash provided by (used for) operating activities | 12,456 | (839) | [1] | 3,603 | [1] | ||
Cash Flows from Investing Activities | |||||||
Purchases of available for sale securities | (32,801) | (15,033) | [1] | (29,248) | [1] | ||
Proceeds from sales of available for sale securities | 115 | 8,617 | [1] | 5,537 | [1] | ||
Principal payments on available for sale securities | 16,016 | 9,095 | [1] | 11,903 | [1] | ||
Purchases of held to maturity securities | (40,873) | (32,925) | [1] | (31,162) | [1] | ||
Principal payments on held to maturity securities | 17,410 | 11,627 | [1] | 5,747 | [1] | ||
Net increase in bank loans | (129) | (1,071) | [1] | (1,103) | [1] | ||
Purchases of equipment, office facilities, and property | (570) | (400) | [1] | (346) | [1] | ||
Purchases of Federal Home Loan Bank stock | (156) | (430) | [1] | (152) | [1] | ||
Proceeds from sales of Federal Home Loan Bank stock | 529 | 106 | [1] | 88 | [1] | ||
Other investing activities | (96) | (59) | [1] | (39) | [1] | ||
Net cash provided by (used for) investing activities | (40,555) | (20,473) | [1] | (38,775) | [1] | ||
Cash Flows from Financing Activities | |||||||
Net change in bank deposits | [2] | 61,767 | 6,186 | [1] | 33,952 | [1] | |
Net change in short-term borrowings | (15,000) | 15,000 | [1] | 0 | [1] | ||
Issuance of long-term debt | 3,024 | 2,129 | [1] | 0 | [1] | ||
Repayment of long-term debt | (909) | (257) | [1] | (7) | [1] | ||
Repurchases of common stock | (1,000) | 0 | [1] | 0 | [1] | ||
Net proceeds from preferred stock offerings | 0 | 492 | [1] | 1,316 | [1] | ||
Redemption of preferred stock | 0 | (485) | [1] | 0 | [1] | ||
Dividends paid | (787) | (592) | [1] | (486) | [1] | ||
Proceeds from stock options exercised | 125 | 171 | [1] | 144 | [1] | ||
Other financing activities | (54) | (45) | [1] | 44 | [1] | ||
Net cash provided by (used for) financing activities | 47,166 | 22,599 | [1] | 34,963 | [1] | ||
Increase (Decrease) in Cash and Cash Equivalents, including Amounts Restricted | 19,067 | 1,287 | [1] | (209) | [1] | ||
Cash and Cash Equivalents including Amounts Restricted at Beginning of Year | [1] | 19,160 | [3] | 17,873 | [3] | 18,082 | |
Cash and Cash Equivalents, including Amounts Restricted at End of Year | [3] | 38,227 | 19,160 | [1] | 17,873 | [1] | |
Cash paid during the year for: | |||||||
Interest | 798 | 327 | [1] | 160 | [1] | ||
Income taxes | 927 | 1,212 | [1] | 991 | [1] | ||
Non-cash investing activity: | |||||||
Securities purchased during the period but settled after period end | $ 0 | $ 29 | [1] | $ 0 | [1] | ||
[1] | Adjusted for the retrospective adoption of ASU 2016-18. See Note 2. | ||||||
[2] | Includes transfers from other sweep features to bank sweep of $72 billion, $5 billion and $8 billion for the years ended December 31, 2018, 2017 and 2016, respectively. | ||||||
[3] | Reconciliation of cash, cash equivalents and amounts reported within the balance sheet |
Consolidated Statements of Ca_2
Consolidated Statements of Cash Flows (Parenthetical) - USD ($) $ in Millions | 12 Months Ended | |||||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||||
Reconciliation of cash, cash equivalents and amounts reported within the balance sheet | ||||||
Cash and cash equivalents | [1] | $ 27,938 | $ 14,217 | [2] | $ 10,828 | [2] |
Restricted cash and cash equivalents amounts included in cash and investments segregated and on deposit for regulatory purposes | [1] | 10,289 | 4,943 | [2] | 7,045 | [2] |
Total cash and cash equivalents, including amounts restricted shown in the statement of cash flows | [1] | 38,227 | 19,160 | [2] | 17,873 | [2] |
Deposit transfers | $ 72,000 | $ 5,000 | $ 8,000 | |||
[1] | Reconciliation of cash, cash equivalents and amounts reported within the balance sheet | |||||
[2] | Adjusted for the retrospective adoption of ASU 2016-18. See Note 2. |
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, 2015 | $ 13,402 | $ 1,459 | $ 15 | $ 4,152 | $ 11,253 | $ (3,343) | $ (134) | |
Beginning Balance (in shares) at Dec. 31, 2015 | 1,488 | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income | 1,889 | [1] | 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 | 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 | [1] | 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 | 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) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Adoption of accounting standards (Note 2) | Accounting Standards Update 2014-09 and 2018-02 [Member] | 167 | 200 | (33) | |||||
Net income | 3,507 | 3,507 | ||||||
Other comprehensive income (loss), net of tax | (67) | (67) | ||||||
Dividends declared on preferred stock | (164) | (164) | ||||||
Dividends declared on common stock | (624) | (624) | ||||||
Repurchase of common stock | (1,000) | (1,000) | ||||||
Stock option exercises and other | 125 | (84) | 209 | |||||
Share-based compensation | 188 | 188 | ||||||
Other | 13 | 42 | 2 | (31) | ||||
Ending Balance (in shares) at Dec. 31, 2018 | 1,488 | |||||||
Ending Balance at Dec. 31, 2018 | $ 20,670 | $ 2,793 | $ 15 | $ 4,499 | $ 17,329 | $ (3,714) | $ (252) | |
[1] | Adjusted for the retrospective adoption of ASU 2016-18. See Note 2. |
Consolidated Statements of St_2
Consolidated Statements of Stockholders' Equity (Parenthetical) - $ / shares | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Statement of Stockholders' Equity [Abstract] | |||||||||||
Dividends Declared Per Common Share (USD per share) | $ 0.13 | $ 0.13 | $ 0.1 | $ 0.1 | $ 0.08 | $ 0.08 | $ 0.08 | $ 0.08 | $ 0.46 | $ 0.32 | $ 0.27 |
Introduction and Basis of Prese
Introduction and Basis of Presentation | 12 Months Ended |
Dec. 31, 2018 | |
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. Significant business subsidiaries of CSC include the following: • Charles Schwab & Co., Inc. ( CS&Co ) is a securities broker-dealer with over 355 domestic branch offices in 47 states, as well as a branch in the Commonwealth of Puerto Rico. In addition, Schwab serves clients through branch offices in the U.K., Hong Kong, Singapore, and Australia through various subsidiaries ; • Charles Schwab Bank (CSB), 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™). Unless otherwise indicated, the terms “Schwab,” “the Company,” “we,” “us,” or “our” mean CSC together with its consolidated subsidiaries. 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 and in the related disclosures. These estimates are based on information available as of the date of the consolidated financial statements. While management makes its best judgment, actual amounts or results could differ from those estimates. Certain estimates relate to taxes on income and legal and regulatory reserves. Actual results may differ from those estimates. 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 11 for further information about VIEs. Schwab 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 Schwab does not have the ability to exercise significant influence are generally carried at cost and adjusted for impairment and observable price changes of the identical or similar investments of the same issuer (adjusted cost method), except for certain investments in qualified affordable housing projects which are accounted for under the proportional amortization method. All equity method, adjusted 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, 2018 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Revenue recognition Schwab’s accounting policies for revenue recognition are discussed in Note 3. 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 and 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 our banking subsidiaries maintain at the Federal Reserve. 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 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 earnings. 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 transactions require Schwab to deliver cash to the lender in exchange for securities ; the receivables from these transactions 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 ; the payables from these transactions 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 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 to 10 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 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. Uncertain tax positions are evaluated to determine whether they are more likely than not to be sustained upon examination. When tax positions are more likely than not to be sustained upon examination the difference between positions taken on tax return filings and estimated potential tax settlement outcomes are recognized in accrued expenses and other liabilities. If a position is not more likely than not to be sustained, then none of the tax benefit is recognized in Schwab’s financial statements. Accrued interest and penalties relating to unrecognized tax benefits is recorded in taxes on income. Schwab records amounts within AOCI net of taxes. Income tax effects are released from AOCI using the specific-identification approach. 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 options or 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. 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. 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 third-party 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. 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 three independent third-party 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 material differences in the amounts recorded. New Accounting Standards Adoption of New Accounting Standards Standard Description Date of Adoption Effects on the Financial Statements or Other Significant Matters Accounting Standards Update (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. January 1, 2018 The guidance does not apply to revenue earned from the Company’s loans and securities. Accordingly, net interest revenue was not impacted. The primary impact for the Company was the capitalization on the consolidated balance sheets of sales commissions paid to employees for obtaining new contracts with clients. These capitalized costs resulted in an asset of $219 million and a related deferred tax liability of $52 million upon adoption. The asset is being amortized to expense over time as the related revenues are recognized. ASU 2016-01, “Financial Instruments – Overall (Subtopic 825-10)” and ASU 2018-03, “Technical Corrections and Improvements to 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 adopted this guidance on a prospective basis for its equity securities that do not have readily determinable fair values. No other significant changes resulted from adoption. Therefore, there was no material impact on the Company’s financial statements. ASU 2016-18, “Statement of Cash Flows (Topic 230) – Restricted Cash a Consensus of the Emerging Issues Task Force” Requires that the statement of cash flows explain the change during the period in the total cash and cash equivalents, including restricted cash and cash equivalents. January 1, 2018 The Company adopted this guidance on a retrospective basis. The Company has significant amounts of restricted cash and cash equivalents due to its business as a broker-dealer. Standard Description Date of Adoption Effects on the Financial Statements or Other Significant Matters ASU 2018-02, “Income Statement – Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income” Permits reclassification of the impacts on certain tax affected items included in AOCI that were adjusted through income from continuing operations rather than AOCI upon the effective date of the Tax Act. January 1, 2018 The Company adopted this guidance as of January 1, 2018. The Company elected to reclassify the income tax effects of the Tax Act from items in AOCI into retained earnings as of the beginning of the period of adoption. New Accounting Standards Not Yet Adopted Standard Description Required Date of Adoption Effects on the Financial Statements or Other Significant Matters 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 adopted the new lease accounting guidance prospectively as of January 1, 2019, which will result in a gross up of the consolidated balance sheet due to recognition of right-of-use assets and lease liabilities primarily related to CS&Co leases of office space and branches. These amounts will be based on the present value of our remaining operating lease payments. The Company's right of use assets and related lease liabilities upon adoption will be $596 million and $662 million, respectively. 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 continues to evaluate the impact of this guidance on its financial statements. The Company has finished the majority of its scoping work and assessment of the current state of data and systems. Work is transitioning to designing and building out approaches to address certain asset classes with a focus primarily on a subset of our securities, including corporate debt securities. The Company expects that a large portion of its securities will have zero expectation of credit losses based on industry and regulator views for U.S. treasury and certain government agency-backed securities. We are currently working on in-depth analysis for the other asset types that do not have zero expectation of credit losses to determine our methods and any needed 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 adopted this guidance as of January 1, 2019 using the modified retrospective method. Adoption resulted in an immaterial cumulative-effect adjustment to the opening balance of retained earnings as of the beginning of the period of adoption. Standard Description Required Date of Adoption Effects on the Financial Statements or Other Significant Matters ASU 2018-15, “Intangibles–Goodwill and Other–Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract (a consensus of the FASB Emerging Issues Task Force)” Aligns the criteria for capitalizing implementation costs for cloud computing arrangements (CCA) that are service contracts with internal-use software that is developed or purchased and CCAs that include an internal-use software license. This guidance requires that the capitalized implementation costs be recognized over the period of the CCA service contract, subject to impairment evaluation on an ongoing basis. January 1, 2020 (early adoption permitted) Historically, Schwab has expensed implementation costs as they are incurred for CCAs that are service contracts. Therefore, adopting this guidance will change the Company’s accounting treatment for these types of implementation costs. The Company is evaluating the impacts of this guidance on its financial statements. The cumulative effect of the changes made to our consolidated January 1, 2018 balance sheet for the adoption of ASU 2014-09, “Revenue – Revenue from Contracts with Customers” and ASU 2018-02, “Other Comprehensive Income – Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income” were as follows: Balance at Adjustments Due to ASU 2014-09 Adjustments Due to ASU 2018-02 Balance at Assets Other assets (1) $ 2,057 $ 167 $ — $ 2,224 Stockholders’ Equity Retained earnings 14,408 167 33 14,608 Accumulated other comprehensive income (152 ) — (33 ) (185 ) (1) Adjustment is comprised of an increase in capitalized contract costs of $219 million , partially offset by an increase in deferred tax liabilities of $52 million . In accordance with the new revenue standard requirements, the disclosure of the impact of adoption on our consolidated statement of income and consolidated balance sheet were as follows: Year Ended December 31, 2018 Statement of Income As Reported Balances Without Adoption of ASU 2014-09 Effect of Change Expenses Excluding Interest Compensation and benefits $ 3,057 $ 3,088 $ (31 ) Taxes on income 1,055 1,047 8 Net Income 3,507 3,484 23 As of December 31, 2018 Balance Sheet As Reported Balances Without Adoption of ASU 2014-09 Effect of |
Revenue Recognition
Revenue Recognition | 12 Months Ended |
Dec. 31, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Recognition | 3. Revenue Recognition Disaggregated Revenue Disaggregation of Schwab’s revenue by major source is as follows: Year Ended December 31, 2018 2017 2016 Net interest revenue Interest revenue $ 6,680 $ 4,624 $ 3,493 Interest expense (857 ) (342 ) (171 ) Net interest revenue 5,823 4,282 3,322 Asset management and administration fees Mutual funds and ETF service fees 1,793 2,045 1,853 Advice solutions 1,139 1,043 915 Other 297 304 287 Asset management and administration fees 3,229 3,392 3,055 Trading revenue Commissions 685 600 779 Principal transactions 78 54 46 Trading revenue 763 654 825 Other 317 290 276 Total net revenues $ 10,132 $ 8,618 $ 7,478 For a summary of revenue provided by our reportable segments, see Note 22. The recognition of revenue is not impacted by the operating segment in which revenue is generated. Net interest revenue Net interest revenue, which is generated from financial instruments covered by various other areas of GAAP, is not within the scope of Accounting Standards Codification (ASC) 606, Revenue From Contracts With Customers (ASC 606), and is included in the table above in order to reconcile to total net revenues per the consolidated statements of income. Net interest revenue is the difference between interest generated on interest earning assets and interest paid on funding sources. Our primary interest earning assets include cash and cash equivalents; segregated cash and investments; margin loans, which constitute the majority of receivables from brokerage clients; investment securities; and bank loans. Revenue on interest earning assets is affected by various factors, such as the composition of assets, prevailing interest rates at the time of origination or purchase, changes in interest rates on floating rate securities and loans, and changes in prepayment levels for mortgage related securities and loans. Fees earned and incurred on securities borrowing and lending activities, which are conducted by CS&Co on assets held in client brokerage accounts, are also included in interest revenue and expense. Asset management and administration fees The majority of asset management and administration fees are generated through our proprietary and third-party mutual fund and ETF offerings, as well as fee-based advisory solutions. Mutual fund and ETF service fees are charged for investment management, shareholder, and administration services provided to Schwab Funds ® and Schwab ETFs™, as well as recordkeeping, shareholder, and administration services provided to third-party funds. Advice solutions fees are charged for brokerage and asset management services provided to advice solutions clients. Both mutual fund and ETF service fees and advice solutions fees are earned and recognized over time. Fees are generally based on a percentage of the daily value of assets under management and are collected on a monthly or quarterly basis. Trading revenue Substantially all trading revenue is generated through commissions earned for executing trades for clients in individual equities, options, fixed income securities, and certain third-party mutual funds and ETFs. This revenue is earned and collected when the trades are executed. Other revenue Other revenue includes order flow revenue, other service fees, software fees from our portfolio management solutions, exchange processing fees, and nonrecurring gains. Generally, the most significant portion of other revenue is order flow revenue, which is comprised of rebate payments received from execution venues to which CS&Co sends equity and option orders. Order flow revenue is recognized when the trades are executed. Capitalized contract costs Capitalized contract costs relate to sales commissions paid to employees for obtaining contracts with clients and are included in other assets on the consolidated balance sheets. These costs are amortized to expense on a straight-line basis over a period that is consistent with how the related revenue is recognized. At December 31, 2018 and January 1, 2018, we had $250 million and $219 million of capitalized contract costs, respectively. Amortization expense related to capitalized contract costs was $47 million in 2018, which was recorded in compensation and benefits expense on the consolidated statements of income. Contract balances Receivables from contracts with customers within the scope of ASC 606 were $307 million at December 31, 2018 and $353 million at January 1, 2018 and were recorded in other assets on the consolidated balance sheets. Schwab does not have any other significant contract assets or contract liability balances as of December 31, 2018 and January 1, 2018. Unsatisfied performance obligations We do not have any unsatisfied performance obligations other than those that are subject to an elective practical expedient under ASC 606. The practical expedient applies to and is elected for contracts where we recognize revenue at the amount to which we have the right to invoice for services performed. |
Receivables from and Payables t
Receivables from and Payables to Brokerage Clients | 12 Months Ended |
Dec. 31, 2018 | |
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, 2018 2017 Receivables Margin loans, net of allowance for doubtful accounts $ 19,273 $ 18,331 Other brokerage receivables 2,378 2,245 Receivables from brokerage clients — net $ 21,651 $ 20,576 Payables Interest-bearing payables $ 21,990 $ 22,840 Non-interest-bearing payables 10,736 8,403 Payables to brokerage clients $ 32,726 $ 31,243 At December 31, 2018 and 2017 , approximately 22% of CS&Co’s total client accounts were located in California. |
Other Securities Owned
Other Securities Owned | 12 Months Ended |
Dec. 31, 2018 | |
Other Securities Owned [Abstract] | |
Other Securities Owned | Other Securities Owned A summary of securities owned is as follows: December 31, 2018 2017 Equity and bond mutual funds $ 441 $ 318 State and municipal debt obligations 39 52 Equity, U.S. Government and corporate debt, and other securities 33 34 Schwab Funds ® money market funds 26 135 Total other securities owned $ 539 $ 539 Equity and bond mutual funds include inventory maintained to facilitate clients’ transactions in certain Schwab Funds and third-party mutual funds , and investments made relating to our deferred compensation plan. State and municipal debt obligations, equity, U.S. Government and corporate debt, and other securities include securities to meet clients’ trading activities. The positions in Schwab Funds ® money market funds arise from certain overnight funding of clients’ redemption, check-writing, and debit card activities. |
Investment Securities
Investment Securities | 12 Months Ended |
Dec. 31, 2018 | |
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, 2018 Amortized Gross Unrealized Gross Unrealized Fair Available for sale securities U.S. agency mortgage-backed securities $ 25,594 $ 44 $ 82 $ 25,556 U.S. Treasury securities 18,410 — 108 18,302 Asset-backed securities (1) 10,086 14 15 10,085 Corporate debt securities (2) 7,477 10 20 7,467 Certificates of deposit 3,682 4 1 3,685 U.S. agency notes 900 — 2 898 Commercial paper (2,3) 522 — — 522 Foreign government agency securities 50 — 1 49 Non-agency commercial mortgage-backed securities 14 — — 14 Total available for sale securities $ 66,735 $ 72 $ 229 $ 66,578 Held to maturity securities U.S. agency mortgage-backed securities $ 118,064 $ 217 $ 2,188 $ 116,093 Asset-backed securities (1) 18,502 83 39 18,546 Corporate debt securities (2) 4,477 2 47 4,432 U.S. state and municipal securities 1,327 24 3 1,348 Non-agency commercial mortgage-backed securities 1,156 3 17 1,142 U.S. Treasury securities 223 — 6 217 Certificates of deposit 200 1 — 201 Foreign government agency securities 50 — 1 49 Other 10 — — 10 Total held to maturity securities $ 144,009 $ 330 $ 2,301 $ 142,038 December 31, 2017 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 (1) Approximately 36% and 42% of asset-backed securities held as of December 31, 2018 and 2017, respectively, were Federal Family Education Loan Program Asset-Backed Securities. Asset-backed securities collateralized by credit card receivables represented approximately 42% and 40% of the asset-backed securities held as of December 31, 2018 and 2017, respectively. (2) As of December 31, 2018 and 2017, approximately 26% and 41% , respectively, of the total AFS and HTM investments in corporate debt securities and commercial paper were issued by institutions in the financial services industry. Approximately 18% and 22% of the holdings of these securities were issued by institutions in the information technology industry as of December 31, 2018 and 2017, respectively. (3) Included in cash and cash equivalents on the consolidated balance sheet, but excluded from this table is $4.9 billion of AFS commercial paper. These holdings have maturities of three months or less and an aggregate market value equal to amortized cost. During 2017, the Company transferred $24.7 billion of investment securities from the AFS category to the HTM category. 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 in anticipation of Schwab crossing $250 billion in consolidated assets, which occurred in the second quarter of 2018. The year after a company 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 is 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. At December 31, 2018 , certain banking subsidiaries had pledged securities with a fair value of $27.2 billion as collateral to secure borrowing capacity on secured credit facilities with the FHLB (see Note 13). CSB also pledges certain investment securities as collateral to secure borrowing capacity at the Federal Reserve Bank discount window, and had pledged securities with a fair value of $7.9 billion as collateral for this facility at December 31, 2018 . CSB also pledges securities issued by federal agencies to secure certain trust deposits. The fair value of these pledged securities was $906 million at December 31, 2018 . Securities with unrealized losses, aggregated by category and period of continuous unrealized loss, are as follows: Less than 12 months Total December 31, 2018 Fair Unrealized Fair Unrealized Fair Unrealized Available for sale securities U.S. agency mortgage-backed securities $ 9,529 $ 32 $ 4,257 $ 50 $ 13,786 $ 82 U.S. Treasury securities 4,951 6 7,037 102 11,988 108 Asset-backed securities 4,050 9 837 6 4,887 15 Corporate debt securities 3,561 19 254 1 3,815 20 Certificates of deposit 1,217 1 150 — 1,367 1 U.S. agency notes 195 — 304 2 499 2 Foreign government agency securities — — 49 1 49 1 Total $ 23,503 $ 67 $ 12,888 $ 162 $ 36,391 $ 229 Held to maturity securities U.S. agency mortgage-backed securities $ 29,263 $ 222 $ 56,435 $ 1,966 $ 85,698 $ 2,188 Asset-backed securities 6,795 35 376 4 7,171 39 Corporate debt securities 2,909 29 1,066 18 3,975 47 U.S. state and municipal securities 77 2 18 1 95 3 Non-agency commercial mortgage-backed securities 283 2 632 15 915 17 U.S. Treasury securities — — 218 6 218 6 Foreign government agency securities — — 49 1 49 1 Total $ 39,327 $ 290 $ 58,794 $ 2,011 $ 98,121 $ 2,301 Total securities with unrealized losses (1) $ 62,830 $ 357 $ 71,682 $ 2,173 $ 134,512 $ 2,530 December 31, 2017 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 (2) $ 58,089 $ 364 $ 34,599 $ 825 $ 92,688 $ 1,189 (1) The number of investment positions with unrealized losses totaled 441 for AFS securities and 1,524 for HTM securities. (2) The number of investment positions with unrealized losses totaled 251 for AFS securities and 938 for HTM securities. At December 31, 2018 , 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 2018, 2017, and 2016. As of December 31, 2018 and 2017 , the Company did not hold any securities on which OTTI was previously recognized. In the below table, mortgage-backed securities have been allocated to maturity groupings based on final contractual maturities. As borrowers may have the right to call or prepay certain obligations underlying our investment securities, actual maturities may differ from the scheduled contractual maturities presented below. The maturities of AFS and HTM securities are as follows: December 31, 2018 Within After 1 year through After 5 years through After Total Available for sale securities U.S. agency mortgage-backed securities $ 153 $ 3,481 $ 12,100 $ 9,822 $ 25,556 U.S. Treasury securities 14,164 4,138 — — 18,302 Asset-backed securities — 8,445 1,240 400 10,085 Corporate debt securities 1,755 5,712 — — 7,467 Certificates of deposit 1,984 1,701 — — 3,685 U.S. agency notes 499 399 — — 898 Commercial paper 522 — — — 522 Foreign government agency securities — 49 — — 49 Non-agency commercial mortgage-backed securities — — — 14 14 Total fair value $ 19,077 $ 23,925 $ 13,340 $ 10,236 $ 66,578 Total amortized cost $ 19,111 $ 24,010 $ 13,382 $ 10,232 $ 66,735 Weighted-average yield (1) 1.80 % 2.71 % 2.61 % 2.70 % 2.43 % Held to maturity securities U.S. agency mortgage-backed securities $ 256 $ 14,960 $ 34,008 $ 66,869 $ 116,093 Asset-backed securities — 2,106 9,144 7,296 18,546 Corporate debt securities 137 3,550 745 — 4,432 U.S. state and municipal securities — 59 309 980 1,348 Non-agency commercial mortgage-backed securities — 356 — 786 1,142 U.S. Treasury securities — — 217 — 217 Certificates of deposit — 201 — — 201 Foreign government agency securities — 49 — — 49 Other — — — 10 10 Total fair value $ 393 $ 21,281 $ 44,423 $ 75,941 $ 142,038 Total amortized cost $ 395 $ 21,446 $ 44,925 $ 77,243 $ 144,009 Weighted-average yield (1) 1.97 % 2.56 % 2.69 % 2.63 % 2.63 % (1) The weighted-average yield is computed using the amortized cost at December 31, 2018. Proceeds and gross realized gains and losses from sales of AFS securities are as follows: Year Ended December 31, 2018 2017 2016 Proceeds $ 115 $ 8,617 $ 5,537 Gross realized gains — 12 4 Gross realized losses — — — |
Bank Loans and Related Allowanc
Bank Loans and Related Allowance for Loan Losses | 12 Months Ended |
Dec. 31, 2018 | |
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, 2018 Current 30-59 days 60-89 days > 90 days past (3) Total past due and other Total Allowance for loan Total – net First Mortgages (1,2) $ 10,349 $ 21 $ 2 $ 12 $ 35 $ 10,384 $ 14 $ 10,370 HELOCs (1,2) 1,493 3 1 8 12 1,505 5 1,500 Pledged asset lines 4,558 3 — — 3 4,561 — 4,561 Other 180 — — — — 180 2 178 Total bank loans $ 16,580 $ 27 $ 3 $ 20 $ 50 $ 16,630 $ 21 $ 16,609 December 31, 2017 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 (1) First Mortgages and HELOCs include unamortized premiums and discounts and direct origination costs of $73 million and $77 million at December 31, 2018 and 2017 , respectively. (2) At December 31, 2018 and 2017 , 47% and 48% , respectively, 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, 2018 or 2017 . At December 31, 2018 , CSB had pledged $11.1 billion of First Mortgages and HELOCs as collateral to secure borrowing capacity on a secured credit facility with the FHLB (see Note 13). Substantially all of the bank loans were collectively evaluated for impairment at both December 31, 2018 and 2017 . Changes in the allowance for loan losses were as follows: December 31, 2018 December 31, 2017 December 31, 2016 First Mortgages HELOCs Other Total (1) First Mortgages HELOCs Other Total (1) First Mortgages HELOCs Other Total (1) Balance at beginning of year $ 16 $ 8 $ 2 $ 26 $ 17 $ 8 $ 1 $ 26 $ 20 $ 11 — $ 31 Charge-offs — — (1 ) (1 ) (2 ) (1 ) — (3 ) (1 ) (1 ) — (2 ) Recoveries 1 1 — 2 1 1 1 3 1 1 — 2 Provision for loan losses (3 ) (4 ) 1 (6 ) — — — — (3 ) (3 ) 1 (5 ) Balance at end of year $ 14 $ 5 $ 2 $ 21 $ 16 $ 8 $ 2 $ 26 $ 17 $ 8 $ 1 $ 26 (1) All PALs were fully collateralized by securities with fair values in excess of borrowings at December 31, 2018 , 2017 , and 2016 . A summary of impaired bank loan-related assets is as follows: December 31, 2018 2017 Nonaccrual loans (1) $ 21 $ 28 Other real estate owned (2) 3 3 Total nonperforming assets 24 31 Troubled debt restructurings 4 11 Total impaired assets $ 28 $ 42 (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 (LTV) ratios at origination (Origination LTV); and • Estimated current LTV ratios (Estimated Current LTV). Borrowers’ FICO scores are provided by an independent third-party credit reporting service and updated quarterly. 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 updated on a monthly basis by reference to a home price appreciation index. The credit quality indicators of the bank loan portfolio are detailed below: December 31, 2018 Balance Weighted Average Percent of Loans that are on First Mortgages Estimated Current LTV < 70% $ 9,396 776 0.04 % >70% – < 90% 985 769 0.41 % >90% – < 100% 2 717 — >100% 1 753 — Total $ 10,384 775 0.07 % HELOCs Estimated Current LTV (1) < 70% $ 1,416 770 0.13 % >70% – < 90% 80 752 0.60 % >90% – < 100% 6 729 3.36 % >100% 3 702 — Total $ 1,505 769 0.17 % Pledged asset lines Weighted Average LTV (1) =70% $ 4,561 766 — December 31, 2017 Balance Weighted Average Percent of Loans that are on First Mortgages Estimated Current LTV < 70% $ 9,046 775 0.09 % >70% – < 90% 961 769 0.46 % >90% – < 100% 5 714 10.49 % >100% 4 713 6.23 % Total $ 10,016 775 0.14 % HELOCs Estimated Current LTV (1) < 70% $ 1,773 772 0.18 % >70% – < 90% 148 755 0.84 % >90% – < 100% 14 742 2.85 % >100% 8 718 4.91 % Total $ 1,943 770 0.27 % Pledged asset lines Weighted Average LTV (1) =70% $ 4,369 765 — (1) Represents the LTV for the full line of credit (drawn and undrawn). December 31, 2018 First Mortgages HELOCs Year of origination Pre-2014 $ 1,979 $ 1,051 2014 408 89 2015 1,050 106 2016 2,606 95 2017 2,366 99 2018 1,975 65 Total $ 10,384 $ 1,505 Origination FICO <620 $ 5 $ — 620 – 679 83 8 680 – 739 1,626 282 > 740 8,670 1,215 Total $ 10,384 $ 1,505 Origination LTV < 70% $ 7,815 $ 1,064 >70% – < 90% 2,564 434 >90% – < 100% 5 7 Total $ 10,384 $ 1,505 December 31, 2017 First Mortgages HELOCs Year of origination Pre-2014 $ 2,804 $ 1,496 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 At December 31, 2018 , First Mortgage loans of $9.4 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 31% of the balance of these mortgages consisted of loans with interest-only payment terms. The interest rates on approximately 64% 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, 2018 Balance Converted to amortizing loan by period end $ 677 Within 1 year 83 > 1 year – 3 years 118 > 3 years – 5 years 173 > 5 years 454 Total $ 1,505 At December 31, 2018 , $1.2 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, 2018 , the borrowers on approximately 51% of HELOC loan balances outstanding only paid the minimum amount due. |
Equipment, Office Facilities, a
Equipment, Office Facilities, and Property | 12 Months Ended |
Dec. 31, 2018 | |
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, 2018 2017 Software $ 1,699 $ 1,490 Buildings 945 810 Leasehold improvements 367 357 Construction in progress 248 142 Furniture and equipment 219 193 Information technology equipment 206 326 Land 179 167 Telecommunications equipment 69 66 Total equipment, office facilities, and property 3,932 3,551 Accumulated depreciation and amortization (2,163 ) (2,080 ) Total equipment, office facilities, and property — net $ 1,769 $ 1,471 Depreciation and amortization expense for equipment, office facilities, and property was $277 million , $232 million , and $197 million in 2018 , 2017 , and 2016 , respectively. |
Goodwill
Goodwill | 12 Months Ended |
Dec. 31, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill | Goodwill The changes in the carrying amount of goodwill, as allocated to our reportable segments, are presented in the following table: Investor Advisor Total 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 Goodwill acquired and other changes during the period — — — Balance at December 31, 2018 $ 1,096 $ 131 $ 1,227 As of our annual testing date, we performed a qualitative assessment of each of the Company’s reporting units . Based on the Company’s analysis, fair value significantly exceeded the carrying value for all reporting units and we concluded that goodwill was not impaired. Schwab did no t recognize any goodwill impairment in any of the years presented. |
Other Assets
Other Assets | 12 Months Ended |
Dec. 31, 2018 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Other Assets | Other Assets The components of other assets are as follows: December 31, 2018 2017 Interest and dividends receivable $ 586 $ 413 Other investments (1) 428 376 Accounts receivable (2) 410 461 Capitalized contract costs, net 250 — Intangible assets, net of accumulated amortization of $299 and $270 (3) 152 108 Prepaid expenses 122 126 FHLB stock (4) 32 405 Deferred tax asset — net 3 76 Other 63 92 Total other assets $ 2,046 $ 2,057 (1) Predominantly CRA-related, including LIHTC investments. (2) Accounts receivable predominantly includes receivables from contracts with customers and a receivable from our loan servicer. (3) Exclusive of indefinite-lived intangible assets of $74 million and $1 million at December 31, 2018 and 2017, respectively, future amortization over the next five years and thereafter is expected to total $77 million . Amortization expense for intangible assets was $29 million in 2018 , and $37 million in both 2017 and 2016 . (4) 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 revenue in the consolidated statements of income. |
Variable Interest Entities
Variable Interest Entities | 12 Months Ended |
Dec. 31, 2018 | |
Variable Interest Entities [Abstract] | |
Variable Interest Entities | Variable Interest Entities As of December 31, 2018 and 2017 , all of Schwab’s involvement with VIEs is through CSB’s CRA-related investments and most of those related to LIHTC investments. As part of CSB’s community reinvestment initiatives, CSB invests in funds that make equity investments in multifamily affordable housing properties. CSB receives tax credits and other tax benefits for these investments. 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 is not the primary beneficiary, are summarized in the table below: December 31, 2018 December 31, 2017 Aggregate Aggregate Maximum exposure Aggregate Aggregate Maximum exposure to loss LIHTC Investments (1) $ 338 $ 188 $ 338 $ 304 $ 203 $ 304 Other CRA Investments (2) 70 — 124 69 — 125 Total $ 408 $ 188 $ 462 $ 373 $ 203 $ 429 (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 adjusted cost method, equity method, or as HTM securities. Aggregate assets are included in HTM securities, bank loans – net, or other assets 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, 2018 and 2017 , Schwab did not provide or intend to provide financial or other support to the VIEs that it was not contractually required to provide. CSB’s funding of these remaining commitments is dependent upon the occurrence of certain conditions, and CSB expects to pay substantially all of these commitments between 2019 and 2022 . |
Bank Deposits
Bank Deposits | 12 Months Ended |
Dec. 31, 2018 | |
Banking and Thrift [Abstract] | |
Bank Deposits | Bank Deposits Bank deposits consist of interest-bearing and non-interest-bearing deposits as follows: December 31, 2018 2017 Interest-bearing deposits: Deposits swept from brokerage accounts $ 212,311 $ 148,212 Checking 12,523 13,388 Savings and other 5,827 7,264 Total interest-bearing deposits 230,661 168,864 Non-interest-bearing deposits 762 792 Total bank deposits $ 231,423 $ 169,656 |
Borrowings
Borrowings | 12 Months Ended |
Dec. 31, 2018 | |
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 fixed-rate Senior Notes and quarterly for the floating-rate Senior Notes. The following table lists long-term debt by instrument outstanding as of December 31, 2018 and 2017 . Date of Principal Amount Outstanding Issuance 2018 2017 Fixed-Rate Senior Notes: 1.500% due March 10, 2018 (1) 03/10/15 $ — $ 625 2.200% due July 25, 2018 (2) 07/25/13 — 275 4.450% due July 22, 2020 07/22/10 700 700 3.250% due May 21, 2021 05/22/18 600 — 3.225% due September 1, 2022 08/29/12 256 256 2.650% due January 25, 2023 12/07/17 800 800 3.550% due February 1, 2024 10/31/18 500 — 3.000% due March 10, 2025 03/10/15 375 375 3.850% due May 21, 2025 05/22/18 750 — 3.450% due February 13, 2026 11/13/15 350 350 3.200% due March 2, 2027 03/02/17 650 650 3.200% due January 25, 2028 12/07/17 700 700 4.000% due February 1, 2029 10/31/18 600 — Floating-rate Senior Notes: Three-month LIBOR + 0.32% due May 21, 2021 05/22/18 600 — Total Senior Notes 6,881 4,731 5.450% Finance lease obligation (3) 06/04/04 52 61 Unamortized discount — net (15 ) (14 ) Debt issuance costs (40 ) (25 ) Total long-term debt $ 6,878 $ 4,753 (1) Redeemed on February 8, 2018. (2) Redeemed on June 25, 2018. (3) 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, 2018 , are as follows: Maturities 2019 $ 8 2020 709 2021 1,209 2022 266 2023 810 Thereafter 3,931 Total maturities 6,933 Unamortized discount — net (15 ) Debt issuance costs (40 ) Total long-term debt $ 6,878 Short-term borrowings: Certain banking subsidiaries maintain secured credit facilities with the FHLB. Amounts available under these facilities are dependent on the amount of our First Mortgages, HELOCs, and the fair value of certain of their investment securities that are pledged as collateral. As of December 31, 2018 , the collateral pledged provided a total borrowing capacity of $35.5 billion of which no amounts were outstanding. As of December 31, 2017 , the collateral pledged provided a total borrowing capacity of $32.3 billion of which $15.0 billion was outstanding, with a 1.53% weighted average fixed interest rate. The Company could increase its borrowing capacity by pledging additional securities. As a condition of the FHLB borrowings, we are required to hold FHLB stock, with the investment recorded in other assets on the consolidated balance sheets. The investment in FHLB was $32 million and $405 million at December 31, 2018 and 2017 , respectively. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Loan Portfolio: CSB provides a co-branded loan origination program for CSB clients (the Program) with Quicken Loans, Inc. (Quicken Loans ® ). Pursuant to the Program, Quicken Loans originates and services First Mortgages and HELOCs for CSB clients. Under the Program, CSB purchases certain First Mortgages and HELOCs that are originated by Quicken Loans. CSB purchased First Mortgages of $2.1 billion and $2.8 billion during 2018 and 2017 , respectively. CSB purchased HELOCs with commitments of $395 million and $461 million during 2018 and 2017 , respectively. The Company’s commitments to extend credit on bank lines of credit and to purchase First Mortgages are as follows: December 31, 2018 2017 Commitments to extend credit related to unused HELOCs, PALs, and other lines of credit $ 11,046 $ 10,060 Commitments to purchase First Mortgage loans 268 308 Total $ 11,314 $ 10,368 Operating leases : Schwab has non-cancelable operating leases for office space and equipment. As of December 31, 2018 , future annual minimum rental commitments under these leases, net of contractual subleases are as follows: Operating Subleases Net 2019 $ 131 $ 4 $ 127 2020 125 4 121 2021 101 4 97 2022 79 2 77 2023 72 1 71 Thereafter 282 — 282 Total $ 790 $ 15 $ 775 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 $146 million , $136 million , and $123 million in 2018 , 2017 , and 2016 , respectively. Purchase obligations: Schwab has purchase obligations for services such as advertising and marketing, telecommunications, professional services, and hardware- and software-related agreements. As of December 31, 2018 , the Company has purchase obligations as follows: 2019 $ 475 2020 232 2021 71 2022 32 2023 22 Thereafter 170 Total $ 1,002 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, 2018 , the aggregate face amount of these LOCs totaled $225 million . There were no funds drawn under any of these LOCs at December 31, 2018 . 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. Schwab’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; and potential opportunities for settlement and the status of any settlement discussions. 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. 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. Total Bond Market Fund™ Litigation : As disclosed previously, the Company had been responding to a class action lawsuit in the U.S. District Court for the Northern District of California on behalf of investors in the Schwab Total Bond Market Fund. On December 13, 2018, following dismissal of its fourth amended complaint and unsuccessful appeals to the Ninth Circuit Court of Appeals, plaintiff stipulated and agreed to dismissal of all claims, concluding the case. |
Financial Instruments Subject t
Financial Instruments Subject to Off-Balance Sheet Credit Risk | 12 Months Ended |
Dec. 31, 2018 | |
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. Schwab also sets standards for the credit quality of the counterparty, monitors the fair value of the underlying securities as compared to the related receivable, including accrued interest, and requires additional collateral where deemed appropriate. The collateral provided under these resale agreements is utilized to meet obligations under broker-dealer client protection rules, which place limitations on our 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 $99 million and $215 million at December 31, 2018 and 2017 , 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, 2018 and 2017 . Gross Amounts Not Offset in the Gross Gross Amounts Offset in the Consolidated Net Amounts Presented in the Consolidated Counterparty Collateral Net December 31, 2018 Assets Resale agreements (1) $ 7,195 $ — $ 7,195 $ — $ (7,195 ) (2) $ — Securities borrowed (3) 101 — 101 (98 ) (3 ) — Total $ 7,296 $ — $ 7,296 $ (98 ) $ (7,198 ) $ — Liabilities Securities loaned (4,5) $ 1,184 $ — $ 1,184 $ (98 ) $ (975 ) $ 111 Total $ 1,184 $ — $ 1,184 $ (98 ) $ (975 ) $ 111 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 (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, 2018 and 2017 , the fair value of collateral received in connection with resale agreements that are available to be repledged or sold was $7.4 billion and $6.7 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, 2018 and 2017 . (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, 2018 2017 Fair value of client securities available to be pledged $ 26,628 $ 25,905 Fair value of client securities pledged for: Fulfillment of requirements with the Options Clearing Corporation (1) 2,315 2,280 Fulfillment of client short sales 1,292 2,011 Securities lending to other broker-dealers 974 784 Total collateral pledged $ 4,581 $ 5,075 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 $97 million as of December 31, 2018 and $78 million as of December 31, 2017 . (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, 2018 | |
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. The Company did not adjust prices received from the primary independent third-party pricing service at December 31, 2018 or 2017 . 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, 2018 Level 1 Level 2 Level 3 Balance at Cash equivalents: Money market funds $ 3,429 $ — $ — $ 3,429 Commercial paper — 4,863 — 4,863 Total cash equivalents 3,429 4,863 — 8,292 Investments segregated and on deposit for regulatory purposes: Certificates of deposit — 1,396 — 1,396 U.S. Government securities — 3,275 — 3,275 Total investments segregated and on deposit for regulatory purposes — 4,671 — 4,671 Other securities owned: Equity and bond mutual funds 441 — — 441 State and municipal debt obligations — 39 — 39 Equity, U.S. Government and corporate debt, and other securities 3 30 — 33 Schwab Funds ® money market funds 26 — — 26 Total other securities owned 470 69 — 539 Available for sale securities: U.S. agency mortgage-backed securities — 25,556 — 25,556 U.S. Treasury securities — 18,302 — 18,302 Asset-backed securities — 10,085 — 10,085 Corporate debt securities — 7,467 — 7,467 Certificates of deposit — 3,685 — 3,685 U.S. agency notes — 898 — 898 Commercial paper — 522 — 522 Foreign government agency securities — 49 — 49 Non-agency commercial mortgage-backed securities — 14 — 14 Total available for sale securities — 66,578 — 66,578 Total $ 3,899 $ 76,181 $ — $ 80,080 December 31, 2017 Level 1 Level 2 Level 3 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 mortgage-backed 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 Fair Value of Other Financial Instruments The following tables present the fair value hierarchy for other financial instruments : December 31, 2018 Carrying Level 1 Level 2 Level 3 Balance at Assets Cash and cash equivalents $ 19,646 $ — $ 19,646 $ — $ 19,646 Cash and investments segregated and on deposit for regulatory purposes 8,886 — 8,886 — 8,886 Receivables from brokers, dealers, and clearing organizations 553 — 553 — 553 Receivables from brokerage clients — net 21,641 — 21,641 — 21,641 Held to maturity securities: U.S. agency mortgage-backed securities 118,064 — 116,093 — 116,093 Asset-backed securities 18,502 — 18,546 — 18,546 Corporate debt securities 4,477 — 4,432 — 4,432 U.S. state and municipal securities 1,327 — 1,348 — 1,348 Non-agency commercial mortgage-backed securities 1,156 — 1,142 — 1,142 U.S. Treasury securities 223 — 217 — 217 Certificates of deposit 200 — 201 — 201 Foreign government agency securities 50 — 49 — 49 Other 10 — 10 — 10 Total held to maturity securities 144,009 — 142,038 — 142,038 Bank loans — net: First Mortgages 10,370 — 10,193 — 10,193 HELOCs 1,500 — 1,583 — 1,583 Pledged asset lines 4,561 — 4,561 — 4,561 Other 178 — 178 — 178 Total bank loans — net 16,609 — 16,515 — 16,515 Other assets 460 — 460 — 460 Total $ 211,804 $ — $ 209,739 $ — $ 209,739 Liabilities Bank deposits $ 231,423 $ — $ 231,423 $ — $ 231,423 Payables to brokers, dealers, and clearing organizations 1,831 — 1,831 — 1,831 Payables to brokerage clients 32,726 — 32,726 — 32,726 Accrued expenses and other liabilities 1,370 — 1,370 — 1,370 Long-term debt 6,878 — 6,827 — 6,827 Total $ 274,228 $ — $ 274,177 $ — $ 274,177 December 31, 2017 Carrying Level 1 Level 2 Level 3 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 |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Dec. 31, 2018 | |
Stockholders' Equity Note [Abstract] | |
Stockholders' Equity | Stockholders’ Equity CSC did no t issue any shares of common stock through external offerings during 2018 , 2017 , or 2016 . On October 25, 2018, CSC publicly announced that its Board of Directors terminated the existing two share repurchase authorizations and replaced them with a new authorization to repurchase up to $1.0 billion of common stock. CSC repurchased 22 million shares for $1.0 billion in 2018, completing all repurchases under this authorization. There were no repurchases of CSC’s common stock in 2018 prior to the fourth quarter, or in 2017. CSC was authorized to issue 9,940,000 shares of preferred stock, $0.01 par value, at December 31, 2018 and 2017 . 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, 2018 Date at Which Dividend Rate Becomes Floating Floating Annual Rate of Three-month LIBOR plus: Shares Issued and Outstanding (In thousands) at December 31, Liquidation Preference Per Share Carrying Value at December 31, Earliest Redemption Date 2018 (1) 2017 (1) 2018 2017 Issue Date Fixed-rate: 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 5 100,000 492 492 10/31/17 5.000 % 12/01/27 12/01/27 2.575 % Total Preferred Stock 1,761 1,761 $ 2,793 $ 2,793 (1) Represented by depositary shares, except for Series A. N/A Not applicable. 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 set forth in the relevant certificate of designations. 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, 2018 | |
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, 2018 2017 2016 Before Tax Net of Before Tax Net of Before Tax Net of Change in net unrealized gain (loss) on available for Net unrealized gain (loss) $ (123 ) $ 30 $ (93 ) $ 13 $ (7 ) $ 6 $ (44 ) $ 16 $ (28 ) 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 Reclassification of net unrealized loss on securities transferred from available for sale (1) — — — (227 ) 85 (142 ) — — — Amortization of amounts previously recorded upon transfer 35 (8 ) 27 31 (11 ) 20 — — — Other (1 ) — (1 ) (11 ) 4 (7 ) 1 — 1 Other comprehensive income (loss) $ (89 ) $ 22 $ (67 ) $ 21 $ (10 ) $ 11 $ (47 ) $ 18 $ (29 ) (1) See Note 6 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 AOCI Balance at December 31, 2015 $ (134 ) Net unrealized gain (loss) on available for sale securities (30 ) Other changes 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 ) Adoption of accounting standards (Note 2) (33 ) Available for sale securities: Net unrealized gain (loss) (93 ) Held to maturity securities: Amortization of amounts previously recorded upon transfer to held to maturity from available for sale 27 Other (1 ) Balance at December 31, 2018 $ (252 ) |
Employee Incentive, Retirement,
Employee Incentive, Retirement, Deferred Compensation, and Career Achievement Plans | 12 Months Ended |
Dec. 31, 2018 | |
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, 2018 2017 2016 Stock option expense $ 51 $ 50 $ 45 Restricted stock unit expense (1) 136 94 89 Employee stock purchase plan expense 10 9 7 Total share-based compensation expense $ 197 $ 153 $ 141 Income tax benefit on share-based compensation expense (2) $ (47 ) $ (57 ) $ (53 ) (1) Restricted stock unit expense in 2018 includes $36 million related to special stock awards issued to non-officer employees. ( 2) Excludes income tax benefits due to the adoption of ASU 2016-09 of $46 million and $87 million in 2018 and 2017, respectively . The Company issues shares for stock options and restricted stock units from treasury stock. At December 31, 2018 , the Company was authorized to grant up to 68 million common shares under its existing stock incentive plans. Additionally, at December 31, 2018 , the Company had 36 million shares reserved for future issuance under its employee stock purchase plan. As of December 31, 2018 , there was $294 million of total unrecognized compensation cost related to outstanding stock options and restricted stock units, which is expected to be recognized through 2022 with a remaining weighted-average service period of 1.8 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, 2017 32 $ 26.16 6.38 $ 814 Granted 4 47.98 Exercised (6 ) 21.65 Forfeited (1) — 36.05 Expired (1) — 19.05 Outstanding at December 31, 2018 30 $ 30.19 6.27 $ 373 Vested and expected to vest at December 31, 2018 30 $ 30.05 6.24 $ 373 Vested and exercisable at December 31, 2018 19 $ 23.70 4.86 $ 331 (1) Number of options were less than 500 thousand . 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, 2018 2017 2016 Weighted-average fair value of options granted per share $ 14.16 $ 13.04 $ 8.73 Cash received from options exercised 125 171 144 Tax benefit realized on options exercised 35 70 38 Aggregate intrinsic value of options exercised 189 241 149 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 the 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 assumptions used to value the options granted during the years presented and their expected lives were as follows: Year Ended December 31, 2018 2017 2016 Weighted-average expected dividend yield 1.42 % 1.06 % 1.22 % Weighted-average expected volatility 33 % 34 % 30 % Weighted-average risk-free interest rate 3.0 % 2.1 % 1.8 % Expected life (in years) 4.0 - 5.2 4.1 - 5.3 4.7 - 7.3 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 one - to four -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 2018 , 2017 , and 2016 was $166 million , $127 million , and $105 million , respectively. The Company’s restricted stock units activity is summarized below: Number Weighted- Average Grant Date Fair Value Outstanding at December 31, 2017 7 $ 35.16 Granted (1) 3 47.03 Vested (1) (3 ) 35.95 Forfeited (2) — 36.10 Outstanding at December 31, 2018 7 $ 40.64 (1) Includes 781 thousand units related to special non-officer employee stock awards, with a weighted-average grant date fair value of $45.87 . All units granted vested immediately. (2) Number of units were less than 500 thousand . Retirement Plan Employees can participate in 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 $105 million , $92 million , and $83 million in 2018 , 2017 , and 2016 , 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 service 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 $144 million and $160 million at December 31, 2018 and 2017 , respectively. FC Career Achievement Plan The FC career achievement plan 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 calculated annually based on performance levels achieved and eligible compensation and are subject to general creditors of the Company. Full vesting occurs when an FC reaches 60 years of age and has at least ten years of service with the Company. The following table presents the changes in projected benefit obligation : December 31, 2018 2017 Projected benefit obligation at beginning of year $ 44 $ 26 Benefit cost (1) 11 9 Actuarial (gain)/loss (2) 1 9 Projected benefit obligation at end of year (3) $ 56 $ 44 (1) Includes service cost and interest cost, which are recognized in compensation and benefits expense and other expense, respectively, in the consolidated statements of income. (2) Actuarial (gain)/loss is reflected in the consolidated statements of comprehensive income and is included in AOCI on the consolidated balance sheets. (3) This amount is recognized as a liability on the consolidated balance sheets and also depicts the accumulated benefit obligation. |
Taxes on Income
Taxes on Income | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Taxes on Income | Taxes on Income On December 22, 2017, the Tax Act was signed into law. Among other things, the Tax Act lowered the federal corporate income tax rate from 35% to 21%, effective for tax years including or commencing January 1, 2018. Schwab’s effective tax rate for the years ended December 31, 2018, 2017, and 2016 was 23.1% , 35.5% , and 36.9% , respectively, resulting from the impact of the Tax Act of 2017. Also as a result 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. During 2018, we concluded our analysis and accounting for all remaining impacts of the Tax Act, including the state tax effect of adjustments made to federal temporary differences, resulting in no additional material impacts. As of January 1, 2018, Schwab adopted new accounting guidance that decreased AOCI and increased retained earnings by $33 million for the reclassification of certain impacts of the Tax Act as described in Note 2. Schwab also adopted new revenue recognition guidance as of January 1, 2018, which resulted in recording an asset for capitalized contract costs of $219 million and a related deferred tax liability of $52 million as described in Note 2. As of December 31, 2018, the deferred tax liability related to the capitalized contract costs was $60 million. The components of taxes on income are as follows: Year Ended December 31, 2018 2017 2016 Current: Federal $ 847 $ 1,132 $ 980 State 159 106 109 Total current 1,006 1,238 1,089 Deferred: Federal 42 58 13 State 7 — 2 Total deferred 49 58 15 Taxes on income $ 1,055 $ 1,296 $ 1,104 The temporary differences that created deferred tax assets and liabilities are detailed below: December 31, 2018 2017 Deferred tax assets: Employee compensation, severance, and benefits $ 132 $ 133 Net unrealized loss on available for sale securities 79 57 Reserves and allowances 13 15 Facilities lease commitments 12 14 State and local taxes 21 12 Net operating loss carryforwards 5 5 Other 6 3 Total deferred tax assets 268 239 Valuation allowance (3 ) (2 ) Deferred tax assets — net of valuation allowance 265 237 Deferred tax liabilities: Capitalized internal-use software development costs (98 ) (89 ) Depreciation and amortization (108 ) (72 ) Capitalized contract costs (60 ) — Total deferred tax liabilities (266 ) (161 ) Deferred tax asset/(liability) — net (1) $ (1 ) $ 76 (1) Amounts are included in accrued expenses and other liabilities and in other assets on the consolidated balance sheets at December 31, 2018 and in other assets at December 31, 2017 . A reconciliation of the federal statutory income tax rate to the effective income tax rate is as follows: Year Ended December 31, 2018 2017 2016 Federal statutory income tax rate 21.0 % 35.0 % 35.0 % State income taxes, net of federal tax benefit 3.0 2.2 2.4 Equity compensation benefit (1.0 ) (2.4 ) — Other (1) 0.1 0.7 (0.5 ) Effective income tax rate 23.1 % 35.5 % 36.9 % (1) 2017 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, 2018 2017 Balance at beginning of year $ 111 $ 93 Additions for tax positions related to the current year 3 22 Additions for tax positions related to prior years 3 15 Reductions for tax positions related to prior years (4 ) (2 ) Reductions due to lapse of statute of limitations — — Reductions for settlements with tax authorities (1 ) (17 ) Balance at end of year $ 112 $ 111 Unrecognized tax benefits totaled $112 million and $111 million as of December 31, 2018 and 2017 , respectively, $108 million and $104 million of which if recognized, would affect the annual effective tax rate. Interest and penalties were accrued related to unrecognized tax benefits in tax expense. At December 31, 2018 and 2017, we had accrued approximately $9 million and $5 million , respectively, for the payment of interest and penalties. 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 2017 remain subject to examination. The years open to examination by state and local governments vary by jurisdiction. |
Regulatory Requirements
Regulatory Requirements | 12 Months Ended |
Dec. 31, 2018 | |
Banking and Thrift [Abstract] | |
Regulatory Requirements | Regulatory Requirements CSC is a savings and loan holding company and CSB, CSC’s primary depository institution subsidiary, is a federal savings bank. CSC is subject to examination, supervision, and regulation by the Federal Reserve. CSB 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 CSB. CSB 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 CSB. In addition, CSB 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, CSB could be subject to restrictive actions if it were to fall within one of the lowest three of five capital categories. CSC and CSB 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 CSB. At December 31, 2018 , both CSC and CSB met all of their respective capital requirements. The regulatory capital and ratios for CSC (consolidated) and CSB are as follows: Actual Minimum to be Minimum Capital December 31, 2018 Amount Ratio Amount Ratio Amount Ratio (1) CSC Common Equity Tier 1 Risk-Based Capital $ 16,813 17.6 % N/A $ 4,295 4.5 % Tier 1 Risk-Based Capital 19,606 20.5 % N/A 5,726 6.0 % Total Risk-Based Capital 19,628 20.6 % N/A 7,635 8.0 % Tier 1 Leverage 19,606 7.1 % N/A 11,058 4.0 % CSB Common Equity Tier 1 Risk-Based Capital $ 15,832 19.7 % $ 5,233 6.5 % $ 3,623 4.5 % Tier 1 Risk-Based Capital 15,832 19.7 % 6,441 8.0 % 4,831 6.0 % Total Risk-Based Capital 15,853 19.7 % 8,051 10.0 % 6,441 8.0 % Tier 1 Leverage 15,832 7.2 % 11,044 5.0 % 8,836 4.0 % December 31, 2017 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 % CSB 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 % (1) Under the Basel III capital rule, CSC and CSB are also required to maintain a capital conservation buffer above the regulatory minimum capital ratios. The capital conservation buffer was 1.875% in 2018 , and became 2.5% on January 1, 2019. If the capital conservation buffer falls below the minimum requirement, the Company would be subject to limits on capital distributions and discretionary bonus payments to executive officers. For 2018 , the minimum capital requirement plus capital conservation buffer for Common Equity Tier 1 Risk-Based Capital, Tier 1 Risk-Based Capital, and Total Risk-Based Capital ratios were 6.375% , 7.875% , and 9.875% , respectively. At December 31, 2018 , both CSC’s and CSB’s capital levels exceeded the fully implemented capital conservation buffer requirement. N/A Not applicable. Based on its regulatory capital ratios at December 31, 2018 , CSB is considered well capitalized (the highest category) under its respective regulatory capital rules. There are no conditions or events since December 31, 2018 that management believes have changed CSB’s capital category. The Federal Reserve requires CSB to maintain reserve balances at the Federal Reserve based on its deposits that are considered to be transaction accounts. CSB’s average reserve requirement was $1.6 billion in 2018 and 2017 . In late 2017, Schwab acquired a federal savings bank charter which is now called Charles Schwab Premier Bank (formerly known as Charles Schwab Signature Bank). At December 31, 2018, the balance sheet of Charles Schwab Premier Bank consisted primarily of investment securities, and held total assets of $15.2 billion. Charles Schwab Premier Bank is subject to similar regulatory guidelines and requirements, and seeks to maintain a Tier 1 Leverage Ratio similar to CSB. 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. Net capital and net capital requirements for CS&Co are as follows: December 31, 2018 2017 Net capital $ 2,304 $ 2,118 Minimum net capital required 0.250 0.250 2% of aggregate debit balances 436 435 Net capital in excess of required net capital $ 1,868 $ 1,683 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, 2018 . 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, 2018 for CS&Co totaled $16.7 billion . As of January 3, 2019, CS&Co had deposited $3.7 billion of cash and qualified securities into its segregated reserve accounts. 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, $704 million of cash and qualified securities was deposited into the segregated reserve accounts. |
Segment Information
Segment Information | 12 Months Ended |
Dec. 31, 2018 | |
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 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, 2018 2017 2016 2018 2017 2016 2018 2017 2016 Net Revenues Net interest revenue $ 4,341 $ 3,231 $ 2,591 $ 1,482 $ 1,051 $ 731 $ 5,823 $ 4,282 $ 3,322 Asset management and administration fees 2,260 2,344 2,093 969 1,048 962 3,229 3,392 3,055 Trading revenue 475 408 524 288 246 301 763 654 825 Other 245 217 203 72 73 73 317 290 276 Total net revenues 7,321 6,200 5,411 2,811 2,418 2,067 10,132 8,618 7,478 Expenses Excluding Interest 4,145 3,725 3,380 1,425 1,243 1,105 5,570 4,968 4,485 Income before taxes on income $ 3,176 $ 2,475 $ 2,031 $ 1,386 $ 1,175 $ 962 $ 4,562 $ 3,650 $ 2,993 Capital expenditures $ 390 $ 265 $ 234 $ 186 $ 147 $ 119 $ 576 $ 412 $ 353 Depreciation and amortization $ 186 $ 203 $ 180 $ 120 $ 66 $ 54 $ 306 $ 269 $ 234 |
The Charles Schwab Corporation
The Charles Schwab Corporation - Parent Company Only Financial Statements | 12 Months Ended |
Dec. 31, 2018 | |
Condensed Financial Information 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, 2018 2017 2016 Interest revenue $ 88 $ 33 $ 22 Interest expense (184 ) (114 ) (100 ) Net interest expense (96 ) (81 ) (78 ) Other 1 3 1 Expenses excluding interest (85 ) (32 ) (21 ) Loss before income tax benefit and equity in net income of subsidiaries (180 ) (110 ) (98 ) Income tax benefit 20 27 34 Loss before equity in net income of subsidiaries (160 ) (83 ) (64 ) Equity in net income of subsidiaries: Equity in undistributed net income of subsidiaries 2,590 1,479 1,690 Dividends from bank subsidiaries 750 625 — Dividends from non-bank subsidiaries 327 333 263 Net Income 3,507 2,354 1,889 Preferred stock dividends and other (1) 178 174 143 Net Income Available to Common Stockholders $ 3,329 $ 2,180 $ 1,746 (1) Includes preferred stock dividends and undistributed earnings and dividends allocated to non-vested restricted stock units. Condensed Balance Sheets December 31, 2018 2017 Assets Cash and cash equivalents $ 2,092 $ 2,825 Receivables from subsidiaries 784 571 Available for sale securities 1,754 573 Held to maturity securities 223 223 Other securities owned — at fair value 109 76 Loans to non-bank subsidiaries 185 448 Investment in non-bank subsidiaries 5,507 5,393 Investment in bank subsidiaries 16,995 13,224 Other assets 228 160 Total assets $ 27,877 $ 23,493 Liabilities and Stockholders’ Equity Accrued expenses and other liabilities $ 379 $ 276 Payables to subsidiaries 2 — Long-term debt 6,826 4,692 Total liabilities 7,207 4,968 Stockholders’ equity 20,670 18,525 Total liabilities and stockholders’ equity $ 27,877 $ 23,493 Condensed Statements of Cash Flows Year Ended December 31, 2018 2017 2016 Cash Flows from Operating Activities Net income $ 3,507 $ 2,354 $ 1,889 Adjustments to reconcile net income to net cash provided by (used for) operating activities: Equity in undistributed earnings of subsidiaries (2,590 ) (1,479 ) (1,690 ) Other 13 5 (37 ) Net change in: Other securities owned (33 ) (1 ) (10 ) Other assets 28 (26 ) (27 ) Accrued expenses and other liabilities 28 44 30 Net cash provided by (used for) operating activities 953 897 155 Cash Flows from Investing Activities Due from (to) subsidiaries — net 408 (374 ) 95 Increase in investments in subsidiaries (1,188 ) (342 ) (1,547 ) Repayments (Advances) of subordinated loan to CS&Co (185 ) — 465 Purchases of available for sale securities (1,751 ) (201 ) (2 ) Proceeds from sales of available for sale securities — 197 2 Principal payments on available for sale securities 573 — — Other investing activities (5 ) (6 ) (4 ) Net cash provided by (used for) investing activities (2,148 ) (726 ) (991 ) Cash Flows from Financing Activities Issuance of long-term debt 3,024 2,129 — Repayment of long-term debt (900 ) (250 ) — Repurchases of common stock (1,000 ) — — Net proceeds from preferred stock offerings — 492 1,316 Redemption of preferred stock — (485 ) — Dividends paid (787 ) (592 ) (486 ) Proceeds from stock options exercised and other 125 171 144 Other financing activities — — 44 Net cash provided by (used for) financing activities 462 1,465 1,018 Increase (Decrease) in Cash and Cash Equivalents (733 ) 1,636 182 Cash and Cash Equivalents at Beginning of Year 2,825 1,189 1,007 Cash and Cash Equivalents at End of Year $ 2,092 $ 2,825 $ 1,189 |
Quarterly Financial Information
Quarterly Financial Information (Unaudited) | 12 Months Ended |
Dec. 31, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Information (Unaudited) | Quarterly Financial Information (Unaudited) Fourth Third Second First Year Ended December 31, 2018: Total Net Revenues $ 2,669 $ 2,579 $ 2,486 $ 2,398 Total Expenses Excluding Interest $ 1,459 $ 1,360 $ 1,355 $ 1,396 Net Income $ 935 $ 923 $ 866 $ 783 Net Income Available to Common Stockholders $ 885 $ 885 $ 813 $ 746 Weighted-Average Common Shares Outstanding — Basic 1,343 1,351 1,350 1,347 Weighted-Average Common Shares Outstanding — Diluted 1,354 1,364 1,364 1,362 Earnings Per Common Share — Basic $ .66 $ .66 $ .60 $ .55 Earnings Per Common Share — Diluted $ .65 $ .65 $ .60 $ .55 Dividends Declared Per Common Share $ .13 $ .13 $ .10 $ .10 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 |
Subsequent Event
Subsequent Event | 12 Months Ended |
Dec. 31, 2018 | |
Subsequent Events [Abstract] | |
Subsequent Event | Subsequent Event On January 30, 2019, CSC publicly announced that its Board of Directors authorized a new Share Repurchase Program to repurchase up to $4.0 billion of common stock, and declared a four cent, or 31%, increase in the quarterly cash dividend to $0.17 per common share. The share repurchase authorization does not have an expiration date. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policy) | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Revenue recognition | Revenue recognition Schwab’s accounting policies for revenue recognition are discussed in Note 3. |
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 and 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 our banking subsidiaries maintain at the Federal Reserve. |
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 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. The allowance for doubtful accounts for brokerage clients and related activity was immaterial for all periods presented. |
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 earnings. |
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 transactions require Schwab to deliver cash to the lender in exchange for securities ; the receivables from these transactions 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 ; the payables from these transactions 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 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 reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable. 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: |
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 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. Uncertain tax positions are evaluated to determine whether they are more likely than not to be sustained upon examination. When tax positions are more likely than not to be sustained upon examination the difference between positions taken on tax return filings and estimated potential tax settlement outcomes are recognized in accrued expenses and other liabilities. If a position is not more likely than not to be sustained, then none of the tax benefit is recognized in Schwab’s financial statements. Accrued interest and penalties relating to unrecognized tax benefits is recorded in taxes on income. Schwab records amounts within AOCI net of taxes. Income tax effects are released from AOCI using the specific-identification approach. |
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 options or 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. |
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. |
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 third-party 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. 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 three independent third-party 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 material differences in the amounts recorded. |
New Accounting Standards | New Accounting Standards Adoption of New Accounting Standards Standard Description Date of Adoption Effects on the Financial Statements or Other Significant Matters Accounting Standards Update (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. January 1, 2018 The guidance does not apply to revenue earned from the Company’s loans and securities. Accordingly, net interest revenue was not impacted. The primary impact for the Company was the capitalization on the consolidated balance sheets of sales commissions paid to employees for obtaining new contracts with clients. These capitalized costs resulted in an asset of $219 million and a related deferred tax liability of $52 million upon adoption. The asset is being amortized to expense over time as the related revenues are recognized. ASU 2016-01, “Financial Instruments – Overall (Subtopic 825-10)” and ASU 2018-03, “Technical Corrections and Improvements to 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 adopted this guidance on a prospective basis for its equity securities that do not have readily determinable fair values. No other significant changes resulted from adoption. Therefore, there was no material impact on the Company’s financial statements. ASU 2016-18, “Statement of Cash Flows (Topic 230) – Restricted Cash a Consensus of the Emerging Issues Task Force” Requires that the statement of cash flows explain the change during the period in the total cash and cash equivalents, including restricted cash and cash equivalents. January 1, 2018 The Company adopted this guidance on a retrospective basis. The Company has significant amounts of restricted cash and cash equivalents due to its business as a broker-dealer. Standard Description Date of Adoption Effects on the Financial Statements or Other Significant Matters ASU 2018-02, “Income Statement – Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income” Permits reclassification of the impacts on certain tax affected items included in AOCI that were adjusted through income from continuing operations rather than AOCI upon the effective date of the Tax Act. January 1, 2018 The Company adopted this guidance as of January 1, 2018. The Company elected to reclassify the income tax effects of the Tax Act from items in AOCI into retained earnings as of the beginning of the period of adoption. New Accounting Standards Not Yet Adopted Standard Description Required Date of Adoption Effects on the Financial Statements or Other Significant Matters 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 adopted the new lease accounting guidance prospectively as of January 1, 2019, which will result in a gross up of the consolidated balance sheet due to recognition of right-of-use assets and lease liabilities primarily related to CS&Co leases of office space and branches. These amounts will be based on the present value of our remaining operating lease payments. The Company's right of use assets and related lease liabilities upon adoption will be $596 million and $662 million, respectively. 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 continues to evaluate the impact of this guidance on its financial statements. The Company has finished the majority of its scoping work and assessment of the current state of data and systems. Work is transitioning to designing and building out approaches to address certain asset classes with a focus primarily on a subset of our securities, including corporate debt securities. The Company expects that a large portion of its securities will have zero expectation of credit losses based on industry and regulator views for U.S. treasury and certain government agency-backed securities. We are currently working on in-depth analysis for the other asset types that do not have zero expectation of credit losses to determine our methods and any needed 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 adopted this guidance as of January 1, 2019 using the modified retrospective method. Adoption resulted in an immaterial cumulative-effect adjustment to the opening balance of retained earnings as of the beginning of the period of adoption. Standard Description Required Date of Adoption Effects on the Financial Statements or Other Significant Matters ASU 2018-15, “Intangibles–Goodwill and Other–Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract (a consensus of the FASB Emerging Issues Task Force)” Aligns the criteria for capitalizing implementation costs for cloud computing arrangements (CCA) that are service contracts with internal-use software that is developed or purchased and CCAs that include an internal-use software license. This guidance requires that the capitalized implementation costs be recognized over the period of the CCA service contract, subject to impairment evaluation on an ongoing basis. January 1, 2020 (early adoption permitted) Historically, Schwab has expensed implementation costs as they are incurred for CCAs that are service contracts. Therefore, adopting this guidance will change the Company’s accounting treatment for these types of implementation costs. The Company is evaluating the impacts of this guidance on its financial statements. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Schedule of Estimated Useful Lives | 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 to 10 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, 2018 2017 Software $ 1,699 $ 1,490 Buildings 945 810 Leasehold improvements 367 357 Construction in progress 248 142 Furniture and equipment 219 193 Information technology equipment 206 326 Land 179 167 Telecommunications equipment 69 66 Total equipment, office facilities, and property 3,932 3,551 Accumulated depreciation and amortization (2,163 ) (2,080 ) Total equipment, office facilities, and property — net $ 1,769 $ 1,471 |
Schedule of New Accounting Pronouncements | The cumulative effect of the changes made to our consolidated January 1, 2018 balance sheet for the adoption of ASU 2014-09, “Revenue – Revenue from Contracts with Customers” and ASU 2018-02, “Other Comprehensive Income – Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income” were as follows: Balance at Adjustments Due to ASU 2014-09 Adjustments Due to ASU 2018-02 Balance at Assets Other assets (1) $ 2,057 $ 167 $ — $ 2,224 Stockholders’ Equity Retained earnings 14,408 167 33 14,608 Accumulated other comprehensive income (152 ) — (33 ) (185 ) (1) Adjustment is comprised of an increase in capitalized contract costs of $219 million , partially offset by an increase in deferred tax liabilities of $52 million . In accordance with the new revenue standard requirements, the disclosure of the impact of adoption on our consolidated statement of income and consolidated balance sheet were as follows: Year Ended December 31, 2018 Statement of Income As Reported Balances Without Adoption of ASU 2014-09 Effect of Change Expenses Excluding Interest Compensation and benefits $ 3,057 $ 3,088 $ (31 ) Taxes on income 1,055 1,047 8 Net Income 3,507 3,484 23 As of December 31, 2018 Balance Sheet As Reported Balances Without Adoption of ASU 2014-09 Effect of Change Assets Other assets (1) $ 2,046 $ 1,851 $ 195 Liabilities Accrued expenses and other liabilities (1) 2,954 2,949 5 Stockholders’ Equity Retained earnings 17,329 17,139 190 (1) Adjustment is comprised of an increase in capitalized contract costs of $250 million , partially offset by an increase in deferred tax liabilities of $60 million . |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Schwab's Revenue | Disaggregation of Schwab’s revenue by major source is as follows: Year Ended December 31, 2018 2017 2016 Net interest revenue Interest revenue $ 6,680 $ 4,624 $ 3,493 Interest expense (857 ) (342 ) (171 ) Net interest revenue 5,823 4,282 3,322 Asset management and administration fees Mutual funds and ETF service fees 1,793 2,045 1,853 Advice solutions 1,139 1,043 915 Other 297 304 287 Asset management and administration fees 3,229 3,392 3,055 Trading revenue Commissions 685 600 779 Principal transactions 78 54 46 Trading revenue 763 654 825 Other 317 290 276 Total net revenues $ 10,132 $ 8,618 $ 7,478 |
Receivables from and Payables_2
Receivables from and Payables to Brokerage Clients (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Receivables [Abstract] | |
Summary of Receivables from and Payables to Brokerage Clients | Receivables from and payables to brokerage clients are detailed below: December 31, 2018 2017 Receivables Margin loans, net of allowance for doubtful accounts $ 19,273 $ 18,331 Other brokerage receivables 2,378 2,245 Receivables from brokerage clients — net $ 21,651 $ 20,576 Payables Interest-bearing payables $ 21,990 $ 22,840 Non-interest-bearing payables 10,736 8,403 Payables to brokerage clients $ 32,726 $ 31,243 |
Other Securities Owned (Tables)
Other Securities Owned (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Other Securities Owned [Abstract] | |
Summary of Other Securities Owned | A summary of securities owned is as follows: December 31, 2018 2017 Equity and bond mutual funds $ 441 $ 318 State and municipal debt obligations 39 52 Equity, U.S. Government and corporate debt, and other securities 33 34 Schwab Funds ® money market funds 26 135 Total other securities owned $ 539 $ 539 |
Investment Securities (Tables)
Investment Securities (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
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, 2018 Amortized Gross Unrealized Gross Unrealized Fair Available for sale securities U.S. agency mortgage-backed securities $ 25,594 $ 44 $ 82 $ 25,556 U.S. Treasury securities 18,410 — 108 18,302 Asset-backed securities (1) 10,086 14 15 10,085 Corporate debt securities (2) 7,477 10 20 7,467 Certificates of deposit 3,682 4 1 3,685 U.S. agency notes 900 — 2 898 Commercial paper (2,3) 522 — — 522 Foreign government agency securities 50 — 1 49 Non-agency commercial mortgage-backed securities 14 — — 14 Total available for sale securities $ 66,735 $ 72 $ 229 $ 66,578 Held to maturity securities U.S. agency mortgage-backed securities $ 118,064 $ 217 $ 2,188 $ 116,093 Asset-backed securities (1) 18,502 83 39 18,546 Corporate debt securities (2) 4,477 2 47 4,432 U.S. state and municipal securities 1,327 24 3 1,348 Non-agency commercial mortgage-backed securities 1,156 3 17 1,142 U.S. Treasury securities 223 — 6 217 Certificates of deposit 200 1 — 201 Foreign government agency securities 50 — 1 49 Other 10 — — 10 Total held to maturity securities $ 144,009 $ 330 $ 2,301 $ 142,038 December 31, 2017 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 (1) Approximately 36% and 42% of asset-backed securities held as of December 31, 2018 and 2017, respectively, were Federal Family Education Loan Program Asset-Backed Securities. Asset-backed securities collateralized by credit card receivables represented approximately 42% and 40% of the asset-backed securities held as of December 31, 2018 and 2017, respectively. (2) As of December 31, 2018 and 2017, approximately 26% and 41% , respectively, of the total AFS and HTM investments in corporate debt securities and commercial paper were issued by institutions in the financial services industry. Approximately 18% and 22% of the holdings of these securities were issued by institutions in the information technology industry as of December 31, 2018 and 2017, respectively. (3) Included in cash and cash equivalents on the consolidated balance sheet, but excluded from this table is $4.9 billion of AFS commercial paper. These holdings have maturities of three months or less and an aggregate market value equal to amortized cost. |
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, 2018 Fair Unrealized Fair Unrealized Fair Unrealized Available for sale securities U.S. agency mortgage-backed securities $ 9,529 $ 32 $ 4,257 $ 50 $ 13,786 $ 82 U.S. Treasury securities 4,951 6 7,037 102 11,988 108 Asset-backed securities 4,050 9 837 6 4,887 15 Corporate debt securities 3,561 19 254 1 3,815 20 Certificates of deposit 1,217 1 150 — 1,367 1 U.S. agency notes 195 — 304 2 499 2 Foreign government agency securities — — 49 1 49 1 Total $ 23,503 $ 67 $ 12,888 $ 162 $ 36,391 $ 229 Held to maturity securities U.S. agency mortgage-backed securities $ 29,263 $ 222 $ 56,435 $ 1,966 $ 85,698 $ 2,188 Asset-backed securities 6,795 35 376 4 7,171 39 Corporate debt securities 2,909 29 1,066 18 3,975 47 U.S. state and municipal securities 77 2 18 1 95 3 Non-agency commercial mortgage-backed securities 283 2 632 15 915 17 U.S. Treasury securities — — 218 6 218 6 Foreign government agency securities — — 49 1 49 1 Total $ 39,327 $ 290 $ 58,794 $ 2,011 $ 98,121 $ 2,301 Total securities with unrealized losses (1) $ 62,830 $ 357 $ 71,682 $ 2,173 $ 134,512 $ 2,530 December 31, 2017 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 (2) $ 58,089 $ 364 $ 34,599 $ 825 $ 92,688 $ 1,189 (1) The number of investment positions with unrealized losses totaled 441 for AFS securities and 1,524 for HTM securities. (2) The number of investment positions with unrealized losses totaled 251 for AFS securities and 938 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, 2018 Within After 1 year through After 5 years through After Total Available for sale securities U.S. agency mortgage-backed securities $ 153 $ 3,481 $ 12,100 $ 9,822 $ 25,556 U.S. Treasury securities 14,164 4,138 — — 18,302 Asset-backed securities — 8,445 1,240 400 10,085 Corporate debt securities 1,755 5,712 — — 7,467 Certificates of deposit 1,984 1,701 — — 3,685 U.S. agency notes 499 399 — — 898 Commercial paper 522 — — — 522 Foreign government agency securities — 49 — — 49 Non-agency commercial mortgage-backed securities — — — 14 14 Total fair value $ 19,077 $ 23,925 $ 13,340 $ 10,236 $ 66,578 Total amortized cost $ 19,111 $ 24,010 $ 13,382 $ 10,232 $ 66,735 Weighted-average yield (1) 1.80 % 2.71 % 2.61 % 2.70 % 2.43 % Held to maturity securities U.S. agency mortgage-backed securities $ 256 $ 14,960 $ 34,008 $ 66,869 $ 116,093 Asset-backed securities — 2,106 9,144 7,296 18,546 Corporate debt securities 137 3,550 745 — 4,432 U.S. state and municipal securities — 59 309 980 1,348 Non-agency commercial mortgage-backed securities — 356 — 786 1,142 U.S. Treasury securities — — 217 — 217 Certificates of deposit — 201 — — 201 Foreign government agency securities — 49 — — 49 Other — — — 10 10 Total fair value $ 393 $ 21,281 $ 44,423 $ 75,941 $ 142,038 Total amortized cost $ 395 $ 21,446 $ 44,925 $ 77,243 $ 144,009 Weighted-average yield (1) 1.97 % 2.56 % 2.69 % 2.63 % 2.63 % (1) The weighted-average yield is computed using the amortized cost at December 31, 2018. |
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, 2018 2017 2016 Proceeds $ 115 $ 8,617 $ 5,537 Gross realized gains — 12 4 Gross realized losses — — — |
Bank Loans and Related Allowa_2
Bank Loans and Related Allowance for Loan Losses (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
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, 2018 Current 30-59 days 60-89 days > 90 days past (3) Total past due and other Total Allowance for loan Total – net First Mortgages (1,2) $ 10,349 $ 21 $ 2 $ 12 $ 35 $ 10,384 $ 14 $ 10,370 HELOCs (1,2) 1,493 3 1 8 12 1,505 5 1,500 Pledged asset lines 4,558 3 — — 3 4,561 — 4,561 Other 180 — — — — 180 2 178 Total bank loans $ 16,580 $ 27 $ 3 $ 20 $ 50 $ 16,630 $ 21 $ 16,609 December 31, 2017 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 (1) First Mortgages and HELOCs include unamortized premiums and discounts and direct origination costs of $73 million and $77 million at December 31, 2018 and 2017 , respectively. (2) At December 31, 2018 and 2017 , 47% and 48% , respectively, 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, 2018 or 2017 . |
Changes in Allowance for Loan Losses | Changes in the allowance for loan losses were as follows: December 31, 2018 December 31, 2017 December 31, 2016 First Mortgages HELOCs Other Total (1) First Mortgages HELOCs Other Total (1) First Mortgages HELOCs Other Total (1) Balance at beginning of year $ 16 $ 8 $ 2 $ 26 $ 17 $ 8 $ 1 $ 26 $ 20 $ 11 — $ 31 Charge-offs — — (1 ) (1 ) (2 ) (1 ) — (3 ) (1 ) (1 ) — (2 ) Recoveries 1 1 — 2 1 1 1 3 1 1 — 2 Provision for loan losses (3 ) (4 ) 1 (6 ) — — — — (3 ) (3 ) 1 (5 ) Balance at end of year $ 14 $ 5 $ 2 $ 21 $ 16 $ 8 $ 2 $ 26 $ 17 $ 8 $ 1 $ 26 (1) All PALs were fully collateralized by securities with fair values in excess of borrowings at December 31, 2018 , 2017 , and 2016 . |
Impaired Bank Loan Assets | A summary of impaired bank loan-related assets is as follows: December 31, 2018 2017 Nonaccrual loans (1) $ 21 $ 28 Other real estate owned (2) 3 3 Total nonperforming assets 24 31 Troubled debt restructurings 4 11 Total impaired assets $ 28 $ 42 (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, 2018 Balance Weighted Average Percent of Loans that are on First Mortgages Estimated Current LTV < 70% $ 9,396 776 0.04 % >70% – < 90% 985 769 0.41 % >90% – < 100% 2 717 — >100% 1 753 — Total $ 10,384 775 0.07 % HELOCs Estimated Current LTV (1) < 70% $ 1,416 770 0.13 % >70% – < 90% 80 752 0.60 % >90% – < 100% 6 729 3.36 % >100% 3 702 — Total $ 1,505 769 0.17 % Pledged asset lines Weighted Average LTV (1) =70% $ 4,561 766 — December 31, 2017 Balance Weighted Average Percent of Loans that are on First Mortgages Estimated Current LTV < 70% $ 9,046 775 0.09 % >70% – < 90% 961 769 0.46 % >90% – < 100% 5 714 10.49 % >100% 4 713 6.23 % Total $ 10,016 775 0.14 % HELOCs Estimated Current LTV (1) < 70% $ 1,773 772 0.18 % >70% – < 90% 148 755 0.84 % >90% – < 100% 14 742 2.85 % >100% 8 718 4.91 % Total $ 1,943 770 0.27 % Pledged asset lines Weighted Average LTV (1) =70% $ 4,369 765 — (1) Represents the LTV for the full line of credit (drawn and undrawn). December 31, 2018 First Mortgages HELOCs Year of origination Pre-2014 $ 1,979 $ 1,051 2014 408 89 2015 1,050 106 2016 2,606 95 2017 2,366 99 2018 1,975 65 Total $ 10,384 $ 1,505 Origination FICO <620 $ 5 $ — 620 – 679 83 8 680 – 739 1,626 282 > 740 8,670 1,215 Total $ 10,384 $ 1,505 Origination LTV < 70% $ 7,815 $ 1,064 >70% – < 90% 2,564 434 >90% – < 100% 5 7 Total $ 10,384 $ 1,505 December 31, 2017 First Mortgages HELOCs Year of origination Pre-2014 $ 2,804 $ 1,496 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 |
Convert to Amortizing Loans | The following table presents when current outstanding HELOCs will convert to amortizing loans: December 31, 2018 Balance Converted to amortizing loan by period end $ 677 Within 1 year 83 > 1 year – 3 years 118 > 3 years – 5 years 173 > 5 years 454 Total $ 1,505 |
Equipment, Office Facilities,_2
Equipment, Office Facilities, and Property (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Property, Plant and Equipment [Abstract] | |
Schedule of 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 to 10 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, 2018 2017 Software $ 1,699 $ 1,490 Buildings 945 810 Leasehold improvements 367 357 Construction in progress 248 142 Furniture and equipment 219 193 Information technology equipment 206 326 Land 179 167 Telecommunications equipment 69 66 Total equipment, office facilities, and property 3,932 3,551 Accumulated depreciation and amortization (2,163 ) (2,080 ) Total equipment, office facilities, and property — net $ 1,769 $ 1,471 |
Goodwill (Tables)
Goodwill (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
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, are presented in the following table: Investor Advisor Total 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 Goodwill acquired and other changes during the period — — — Balance at December 31, 2018 $ 1,096 $ 131 $ 1,227 |
Other Assets (Tables)
Other Assets (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Components of Other Assets | The components of other assets are as follows: December 31, 2018 2017 Interest and dividends receivable $ 586 $ 413 Other investments (1) 428 376 Accounts receivable (2) 410 461 Capitalized contract costs, net 250 — Intangible assets, net of accumulated amortization of $299 and $270 (3) 152 108 Prepaid expenses 122 126 FHLB stock (4) 32 405 Deferred tax asset — net 3 76 Other 63 92 Total other assets $ 2,046 $ 2,057 (1) Predominantly CRA-related, including LIHTC investments. (2) Accounts receivable predominantly includes receivables from contracts with customers and a receivable from our loan servicer. (3) Exclusive of indefinite-lived intangible assets of $74 million and $1 million at December 31, 2018 and 2017, respectively, future amortization over the next five years and thereafter is expected to total $77 million . Amortization expense for intangible assets was $29 million in 2018 , and $37 million in both 2017 and 2016 . (4) 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 revenue in the consolidated statements of income. |
Variable Interest Entities (Tab
Variable Interest Entities (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
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 is not the primary beneficiary, are summarized in the table below: December 31, 2018 December 31, 2017 Aggregate Aggregate Maximum exposure Aggregate Aggregate Maximum exposure to loss LIHTC Investments (1) $ 338 $ 188 $ 338 $ 304 $ 203 $ 304 Other CRA Investments (2) 70 — 124 69 — 125 Total $ 408 $ 188 $ 462 $ 373 $ 203 $ 429 (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 adjusted cost method, equity method, or as HTM securities. Aggregate assets are included in HTM securities, bank loans – net, or other assets on the consolidated balance sheets. |
Bank Deposits (Tables)
Bank Deposits (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
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, 2018 2017 Interest-bearing deposits: Deposits swept from brokerage accounts $ 212,311 $ 148,212 Checking 12,523 13,388 Savings and other 5,827 7,264 Total interest-bearing deposits 230,661 168,864 Non-interest-bearing deposits 762 792 Total bank deposits $ 231,423 $ 169,656 |
Borrowings (Tables)
Borrowings (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Debt Disclosure [Abstract] | |
Long-term Debt Including Unamortized Debt Discounts and Premiums | The following table lists long-term debt by instrument outstanding as of December 31, 2018 and 2017 . Date of Principal Amount Outstanding Issuance 2018 2017 Fixed-Rate Senior Notes: 1.500% due March 10, 2018 (1) 03/10/15 $ — $ 625 2.200% due July 25, 2018 (2) 07/25/13 — 275 4.450% due July 22, 2020 07/22/10 700 700 3.250% due May 21, 2021 05/22/18 600 — 3.225% due September 1, 2022 08/29/12 256 256 2.650% due January 25, 2023 12/07/17 800 800 3.550% due February 1, 2024 10/31/18 500 — 3.000% due March 10, 2025 03/10/15 375 375 3.850% due May 21, 2025 05/22/18 750 — 3.450% due February 13, 2026 11/13/15 350 350 3.200% due March 2, 2027 03/02/17 650 650 3.200% due January 25, 2028 12/07/17 700 700 4.000% due February 1, 2029 10/31/18 600 — Floating-rate Senior Notes: Three-month LIBOR + 0.32% due May 21, 2021 05/22/18 600 — Total Senior Notes 6,881 4,731 5.450% Finance lease obligation (3) 06/04/04 52 61 Unamortized discount — net (15 ) (14 ) Debt issuance costs (40 ) (25 ) Total long-term debt $ 6,878 $ 4,753 (1) Redeemed on February 8, 2018. (2) Redeemed on June 25, 2018. (3) 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, 2018 , are as follows: Maturities 2019 $ 8 2020 709 2021 1,209 2022 266 2023 810 Thereafter 3,931 Total maturities 6,933 Unamortized discount — net (15 ) Debt issuance costs (40 ) Total long-term debt $ 6,878 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
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, 2018 2017 Commitments to extend credit related to unused HELOCs, PALs, and other lines of credit $ 11,046 $ 10,060 Commitments to purchase First Mortgage loans 268 308 Total $ 11,314 $ 10,368 |
Future Annual Minimum Rental Commitments, Net of Contractual Subleases | As of December 31, 2018 , future annual minimum rental commitments under these leases, net of contractual subleases are as follows: Operating Subleases Net 2019 $ 131 $ 4 $ 127 2020 125 4 121 2021 101 4 97 2022 79 2 77 2023 72 1 71 Thereafter 282 — 282 Total $ 790 $ 15 $ 775 |
Purchase Obligations | As of December 31, 2018 , the Company has purchase obligations as follows: 2019 $ 475 2020 232 2021 71 2022 32 2023 22 Thereafter 170 Total $ 1,002 |
Financial Instruments Subject_2
Financial Instruments Subject to Off-Balance Sheet Credit Risk (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
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, 2018 and 2017 . Gross Amounts Not Offset in the Gross Gross Amounts Offset in the Consolidated Net Amounts Presented in the Consolidated Counterparty Collateral Net December 31, 2018 Assets Resale agreements (1) $ 7,195 $ — $ 7,195 $ — $ (7,195 ) (2) $ — Securities borrowed (3) 101 — 101 (98 ) (3 ) — Total $ 7,296 $ — $ 7,296 $ (98 ) $ (7,198 ) $ — Liabilities Securities loaned (4,5) $ 1,184 $ — $ 1,184 $ (98 ) $ (975 ) $ 111 Total $ 1,184 $ — $ 1,184 $ (98 ) $ (975 ) $ 111 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 (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, 2018 and 2017 , the fair value of collateral received in connection with resale agreements that are available to be repledged or sold was $7.4 billion and $6.7 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, 2018 and 2017 . (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 | 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, 2018 2017 Fair value of client securities available to be pledged $ 26,628 $ 25,905 Fair value of client securities pledged for: Fulfillment of requirements with the Options Clearing Corporation (1) 2,315 2,280 Fulfillment of client short sales 1,292 2,011 Securities lending to other broker-dealers 974 784 Total collateral pledged $ 4,581 $ 5,075 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 $97 million as of December 31, 2018 and $78 million as of December 31, 2017 . (1) Client securities pledged to fulfill client margin requirements for open option contracts established with the Options Clearing Corporation. |
Fair Values of Assets and Lia_2
Fair Values of Assets and Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value Hierarchy for Assets and Liabilities Measured at Fair Value on a Recurring Basis | December 31, 2018 Level 1 Level 2 Level 3 Balance at Cash equivalents: Money market funds $ 3,429 $ — $ — $ 3,429 Commercial paper — 4,863 — 4,863 Total cash equivalents 3,429 4,863 — 8,292 Investments segregated and on deposit for regulatory purposes: Certificates of deposit — 1,396 — 1,396 U.S. Government securities — 3,275 — 3,275 Total investments segregated and on deposit for regulatory purposes — 4,671 — 4,671 Other securities owned: Equity and bond mutual funds 441 — — 441 State and municipal debt obligations — 39 — 39 Equity, U.S. Government and corporate debt, and other securities 3 30 — 33 Schwab Funds ® money market funds 26 — — 26 Total other securities owned 470 69 — 539 Available for sale securities: U.S. agency mortgage-backed securities — 25,556 — 25,556 U.S. Treasury securities — 18,302 — 18,302 Asset-backed securities — 10,085 — 10,085 Corporate debt securities — 7,467 — 7,467 Certificates of deposit — 3,685 — 3,685 U.S. agency notes — 898 — 898 Commercial paper — 522 — 522 Foreign government agency securities — 49 — 49 Non-agency commercial mortgage-backed securities — 14 — 14 Total available for sale securities — 66,578 — 66,578 Total $ 3,899 $ 76,181 $ — $ 80,080 December 31, 2017 Level 1 Level 2 Level 3 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 mortgage-backed 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 |
Fair Value of Other Financial Instruments | The following tables present the fair value hierarchy for other financial instruments : December 31, 2018 Carrying Level 1 Level 2 Level 3 Balance at Assets Cash and cash equivalents $ 19,646 $ — $ 19,646 $ — $ 19,646 Cash and investments segregated and on deposit for regulatory purposes 8,886 — 8,886 — 8,886 Receivables from brokers, dealers, and clearing organizations 553 — 553 — 553 Receivables from brokerage clients — net 21,641 — 21,641 — 21,641 Held to maturity securities: U.S. agency mortgage-backed securities 118,064 — 116,093 — 116,093 Asset-backed securities 18,502 — 18,546 — 18,546 Corporate debt securities 4,477 — 4,432 — 4,432 U.S. state and municipal securities 1,327 — 1,348 — 1,348 Non-agency commercial mortgage-backed securities 1,156 — 1,142 — 1,142 U.S. Treasury securities 223 — 217 — 217 Certificates of deposit 200 — 201 — 201 Foreign government agency securities 50 — 49 — 49 Other 10 — 10 — 10 Total held to maturity securities 144,009 — 142,038 — 142,038 Bank loans — net: First Mortgages 10,370 — 10,193 — 10,193 HELOCs 1,500 — 1,583 — 1,583 Pledged asset lines 4,561 — 4,561 — 4,561 Other 178 — 178 — 178 Total bank loans — net 16,609 — 16,515 — 16,515 Other assets 460 — 460 — 460 Total $ 211,804 $ — $ 209,739 $ — $ 209,739 Liabilities Bank deposits $ 231,423 $ — $ 231,423 $ — $ 231,423 Payables to brokers, dealers, and clearing organizations 1,831 — 1,831 — 1,831 Payables to brokerage clients 32,726 — 32,726 — 32,726 Accrued expenses and other liabilities 1,370 — 1,370 — 1,370 Long-term debt 6,878 — 6,827 — 6,827 Total $ 274,228 $ — $ 274,177 $ — $ 274,177 December 31, 2017 Carrying Level 1 Level 2 Level 3 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 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
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, 2018 Date at Which Dividend Rate Becomes Floating Floating Annual Rate of Three-month LIBOR plus: Shares Issued and Outstanding (In thousands) at December 31, Liquidation Preference Per Share Carrying Value at December 31, Earliest Redemption Date 2018 (1) 2017 (1) 2018 2017 Issue Date Fixed-rate: 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 5 100,000 492 492 10/31/17 5.000 % 12/01/27 12/01/27 2.575 % Total Preferred Stock 1,761 1,761 $ 2,793 $ 2,793 (1) Represented by depositary shares, except for Series A. N/A Not applicable. |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
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, 2018 2017 2016 Before Tax Net of Before Tax Net of Before Tax Net of Change in net unrealized gain (loss) on available for Net unrealized gain (loss) $ (123 ) $ 30 $ (93 ) $ 13 $ (7 ) $ 6 $ (44 ) $ 16 $ (28 ) 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 Reclassification of net unrealized loss on securities transferred from available for sale (1) — — — (227 ) 85 (142 ) — — — Amortization of amounts previously recorded upon transfer 35 (8 ) 27 31 (11 ) 20 — — — Other (1 ) — (1 ) (11 ) 4 (7 ) 1 — 1 Other comprehensive income (loss) $ (89 ) $ 22 $ (67 ) $ 21 $ (10 ) $ 11 $ (47 ) $ 18 $ (29 ) (1) See Note 6 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 AOCI Balance at December 31, 2015 $ (134 ) Net unrealized gain (loss) on available for sale securities (30 ) Other changes 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 ) Adoption of accounting standards (Note 2) (33 ) Available for sale securities: Net unrealized gain (loss) (93 ) Held to maturity securities: Amortization of amounts previously recorded upon transfer to held to maturity from available for sale 27 Other (1 ) Balance at December 31, 2018 $ (252 ) |
Employee Incentive, Retiremen_2
Employee Incentive, Retirement, Deferred Compensation, and Career Achievement Plans (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
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, 2018 2017 2016 Stock option expense $ 51 $ 50 $ 45 Restricted stock unit expense (1) 136 94 89 Employee stock purchase plan expense 10 9 7 Total share-based compensation expense $ 197 $ 153 $ 141 Income tax benefit on share-based compensation expense (2) $ (47 ) $ (57 ) $ (53 ) (1) Restricted stock unit expense in 2018 includes $36 million related to special stock awards issued to non-officer employees. ( 2) Excludes income tax benefits due to the adoption of ASU 2016-09 of $46 million and $87 million in 2018 and 2017, respectively . |
Stock Option Activity | Stock option activity is summarized below: Number Weighted- Average Exercise Price Weighted- Average Remaining Contractual Aggregate Intrinsic Outstanding at December 31, 2017 32 $ 26.16 6.38 $ 814 Granted 4 47.98 Exercised (6 ) 21.65 Forfeited (1) — 36.05 Expired (1) — 19.05 Outstanding at December 31, 2018 30 $ 30.19 6.27 $ 373 Vested and expected to vest at December 31, 2018 30 $ 30.05 6.24 $ 373 Vested and exercisable at December 31, 2018 19 $ 23.70 4.86 $ 331 (1) Number of options were less than 500 thousand . |
Information on Stock Options Granted and Exercised | Information on stock options granted and exercised is presented below: Year Ended December 31, 2018 2017 2016 Weighted-average fair value of options granted per share $ 14.16 $ 13.04 $ 8.73 Cash received from options exercised 125 171 144 Tax benefit realized on options exercised 35 70 38 Aggregate intrinsic value of options exercised 189 241 149 |
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, 2018 2017 2016 Weighted-average expected dividend yield 1.42 % 1.06 % 1.22 % Weighted-average expected volatility 33 % 34 % 30 % Weighted-average risk-free interest rate 3.0 % 2.1 % 1.8 % Expected life (in years) 4.0 - 5.2 4.1 - 5.3 4.7 - 7.3 |
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, 2017 7 $ 35.16 Granted (1) 3 47.03 Vested (1) (3 ) 35.95 Forfeited (2) — 36.10 Outstanding at December 31, 2018 7 $ 40.64 (1) Includes 781 thousand units related to special non-officer employee stock awards, with a weighted-average grant date fair value of $45.87 . All units granted vested immediately. (2) Number of units were less than 500 thousand . |
Schedule of Changes in Projected Benefit Obligations | The following table presents the changes in projected benefit obligation : December 31, 2018 2017 Projected benefit obligation at beginning of year $ 44 $ 26 Benefit cost (1) 11 9 Actuarial (gain)/loss (2) 1 9 Projected benefit obligation at end of year (3) $ 56 $ 44 (1) Includes service cost and interest cost, which are recognized in compensation and benefits expense and other expense, respectively, in the consolidated statements of income. (2) Actuarial (gain)/loss is reflected in the consolidated statements of comprehensive income and is included in AOCI on the consolidated balance sheets. (3) This amount is recognized as a liability on the consolidated balance sheets and also depicts the accumulated benefit obligation. |
Taxes on Income (Tables)
Taxes on Income (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Tax Expense | The components of taxes on income are as follows: Year Ended December 31, 2018 2017 2016 Current: Federal $ 847 $ 1,132 $ 980 State 159 106 109 Total current 1,006 1,238 1,089 Deferred: Federal 42 58 13 State 7 — 2 Total deferred 49 58 15 Taxes on income $ 1,055 $ 1,296 $ 1,104 |
Temporary Differences That Created Deferred Tax Assets and Liabilities | The temporary differences that created deferred tax assets and liabilities are detailed below: December 31, 2018 2017 Deferred tax assets: Employee compensation, severance, and benefits $ 132 $ 133 Net unrealized loss on available for sale securities 79 57 Reserves and allowances 13 15 Facilities lease commitments 12 14 State and local taxes 21 12 Net operating loss carryforwards 5 5 Other 6 3 Total deferred tax assets 268 239 Valuation allowance (3 ) (2 ) Deferred tax assets — net of valuation allowance 265 237 Deferred tax liabilities: Capitalized internal-use software development costs (98 ) (89 ) Depreciation and amortization (108 ) (72 ) Capitalized contract costs (60 ) — Total deferred tax liabilities (266 ) (161 ) Deferred tax asset/(liability) — net (1) $ (1 ) $ 76 (1) Amounts are included in accrued expenses and other liabilities and in other assets on the consolidated balance sheets at December 31, 2018 and in other assets at December 31, 2017 . |
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, 2018 2017 2016 Federal statutory income tax rate 21.0 % 35.0 % 35.0 % State income taxes, net of federal tax benefit 3.0 2.2 2.4 Equity compensation benefit (1.0 ) (2.4 ) — Other (1) 0.1 0.7 (0.5 ) Effective income tax rate 23.1 % 35.5 % 36.9 % (1) 2017 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, 2018 2017 Balance at beginning of year $ 111 $ 93 Additions for tax positions related to the current year 3 22 Additions for tax positions related to prior years 3 15 Reductions for tax positions related to prior years (4 ) (2 ) Reductions due to lapse of statute of limitations — — Reductions for settlements with tax authorities (1 ) (17 ) Balance at end of year $ 112 $ 111 |
Regulatory Requirements (Tables
Regulatory Requirements (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Banking and Thrift [Abstract] | |
Regulatory Capital and Ratios | The regulatory capital and ratios for CSC (consolidated) and CSB are as follows: Actual Minimum to be Minimum Capital December 31, 2018 Amount Ratio Amount Ratio Amount Ratio (1) CSC Common Equity Tier 1 Risk-Based Capital $ 16,813 17.6 % N/A $ 4,295 4.5 % Tier 1 Risk-Based Capital 19,606 20.5 % N/A 5,726 6.0 % Total Risk-Based Capital 19,628 20.6 % N/A 7,635 8.0 % Tier 1 Leverage 19,606 7.1 % N/A 11,058 4.0 % CSB Common Equity Tier 1 Risk-Based Capital $ 15,832 19.7 % $ 5,233 6.5 % $ 3,623 4.5 % Tier 1 Risk-Based Capital 15,832 19.7 % 6,441 8.0 % 4,831 6.0 % Total Risk-Based Capital 15,853 19.7 % 8,051 10.0 % 6,441 8.0 % Tier 1 Leverage 15,832 7.2 % 11,044 5.0 % 8,836 4.0 % December 31, 2017 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 % CSB 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 % (1) Under the Basel III capital rule, CSC and CSB are also required to maintain a capital conservation buffer above the regulatory minimum capital ratios. The capital conservation buffer was 1.875% in 2018 , and became 2.5% on January 1, 2019. If the capital conservation buffer falls below the minimum requirement, the Company would be subject to limits on capital distributions and discretionary bonus payments to executive officers. For 2018 , the minimum capital requirement plus capital conservation buffer for Common Equity Tier 1 Risk-Based Capital, Tier 1 Risk-Based Capital, and Total Risk-Based Capital ratios were 6.375% , 7.875% , and 9.875% , respectively. At December 31, 2018 , both CSC’s and CSB’s capital levels exceeded the fully implemented capital conservation buffer requirement. |
Net Capital and Net Capital Requirements for CS&Co | Net capital and net capital requirements for CS&Co are as follows: December 31, 2018 2017 Net capital $ 2,304 $ 2,118 Minimum net capital required 0.250 0.250 2% of aggregate debit balances 436 435 Net capital in excess of required net capital $ 1,868 $ 1,683 |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
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, 2018 2017 2016 2018 2017 2016 2018 2017 2016 Net Revenues Net interest revenue $ 4,341 $ 3,231 $ 2,591 $ 1,482 $ 1,051 $ 731 $ 5,823 $ 4,282 $ 3,322 Asset management and administration fees 2,260 2,344 2,093 969 1,048 962 3,229 3,392 3,055 Trading revenue 475 408 524 288 246 301 763 654 825 Other 245 217 203 72 73 73 317 290 276 Total net revenues 7,321 6,200 5,411 2,811 2,418 2,067 10,132 8,618 7,478 Expenses Excluding Interest 4,145 3,725 3,380 1,425 1,243 1,105 5,570 4,968 4,485 Income before taxes on income $ 3,176 $ 2,475 $ 2,031 $ 1,386 $ 1,175 $ 962 $ 4,562 $ 3,650 $ 2,993 Capital expenditures $ 390 $ 265 $ 234 $ 186 $ 147 $ 119 $ 576 $ 412 $ 353 Depreciation and amortization $ 186 $ 203 $ 180 $ 120 $ 66 $ 54 $ 306 $ 269 $ 234 |
The Charles Schwab Corporatio_2
The Charles Schwab Corporation - Parent Company Only Financial Statements (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Condensed Financial Information Disclosure [Abstract] | |
Condensed Statements of Income | Condensed Statements of Income Year Ended December 31, 2018 2017 2016 Interest revenue $ 88 $ 33 $ 22 Interest expense (184 ) (114 ) (100 ) Net interest expense (96 ) (81 ) (78 ) Other 1 3 1 Expenses excluding interest (85 ) (32 ) (21 ) Loss before income tax benefit and equity in net income of subsidiaries (180 ) (110 ) (98 ) Income tax benefit 20 27 34 Loss before equity in net income of subsidiaries (160 ) (83 ) (64 ) Equity in net income of subsidiaries: Equity in undistributed net income of subsidiaries 2,590 1,479 1,690 Dividends from bank subsidiaries 750 625 — Dividends from non-bank subsidiaries 327 333 263 Net Income 3,507 2,354 1,889 Preferred stock dividends and other (1) 178 174 143 Net Income Available to Common Stockholders $ 3,329 $ 2,180 $ 1,746 (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, 2018 2017 Assets Cash and cash equivalents $ 2,092 $ 2,825 Receivables from subsidiaries 784 571 Available for sale securities 1,754 573 Held to maturity securities 223 223 Other securities owned — at fair value 109 76 Loans to non-bank subsidiaries 185 448 Investment in non-bank subsidiaries 5,507 5,393 Investment in bank subsidiaries 16,995 13,224 Other assets 228 160 Total assets $ 27,877 $ 23,493 Liabilities and Stockholders’ Equity Accrued expenses and other liabilities $ 379 $ 276 Payables to subsidiaries 2 — Long-term debt 6,826 4,692 Total liabilities 7,207 4,968 Stockholders’ equity 20,670 18,525 Total liabilities and stockholders’ equity $ 27,877 $ 23,493 |
Condensed Statements of Cash Flows | Condensed Statements of Cash Flows Year Ended December 31, 2018 2017 2016 Cash Flows from Operating Activities Net income $ 3,507 $ 2,354 $ 1,889 Adjustments to reconcile net income to net cash provided by (used for) operating activities: Equity in undistributed earnings of subsidiaries (2,590 ) (1,479 ) (1,690 ) Other 13 5 (37 ) Net change in: Other securities owned (33 ) (1 ) (10 ) Other assets 28 (26 ) (27 ) Accrued expenses and other liabilities 28 44 30 Net cash provided by (used for) operating activities 953 897 155 Cash Flows from Investing Activities Due from (to) subsidiaries — net 408 (374 ) 95 Increase in investments in subsidiaries (1,188 ) (342 ) (1,547 ) Repayments (Advances) of subordinated loan to CS&Co (185 ) — 465 Purchases of available for sale securities (1,751 ) (201 ) (2 ) Proceeds from sales of available for sale securities — 197 2 Principal payments on available for sale securities 573 — — Other investing activities (5 ) (6 ) (4 ) Net cash provided by (used for) investing activities (2,148 ) (726 ) (991 ) Cash Flows from Financing Activities Issuance of long-term debt 3,024 2,129 — Repayment of long-term debt (900 ) (250 ) — Repurchases of common stock (1,000 ) — — Net proceeds from preferred stock offerings — 492 1,316 Redemption of preferred stock — (485 ) — Dividends paid (787 ) (592 ) (486 ) Proceeds from stock options exercised and other 125 171 144 Other financing activities — — 44 Net cash provided by (used for) financing activities 462 1,465 1,018 Increase (Decrease) in Cash and Cash Equivalents (733 ) 1,636 182 Cash and Cash Equivalents at Beginning of Year 2,825 1,189 1,007 Cash and Cash Equivalents at End of Year $ 2,092 $ 2,825 $ 1,189 |
Quarterly Financial Informati_2
Quarterly Financial Information (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Quarterly Financial Information | Fourth Third Second First Year Ended December 31, 2018: Total Net Revenues $ 2,669 $ 2,579 $ 2,486 $ 2,398 Total Expenses Excluding Interest $ 1,459 $ 1,360 $ 1,355 $ 1,396 Net Income $ 935 $ 923 $ 866 $ 783 Net Income Available to Common Stockholders $ 885 $ 885 $ 813 $ 746 Weighted-Average Common Shares Outstanding — Basic 1,343 1,351 1,350 1,347 Weighted-Average Common Shares Outstanding — Diluted 1,354 1,364 1,364 1,362 Earnings Per Common Share — Basic $ .66 $ .66 $ .60 $ .55 Earnings Per Common Share — Diluted $ .65 $ .65 $ .60 $ .55 Dividends Declared Per Common Share $ .13 $ .13 $ .10 $ .10 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 |
Introduction and Basis of Pre_2
Introduction and Basis of Presentation (Details) | Dec. 31, 2018stateoffice |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Minimum number of domestic branch offices | office | 355 |
States with domestic branch offices | state | 47 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Equipment, Office Facilities, and Property) (Details) | 12 Months Ended |
Dec. 31, 2018 | |
Equipment and office facilities [Member] | Minimum [Member] | |
Summary of Significant Accounting Policies [Line Items] | |
Estimated useful life, property, plant and equipment | 5 years |
Equipment and office facilities [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] | |
Summary of Significant Accounting Policies [Line Items] | |
Estimated useful life, Software and certain costs incurred for purchasing or developing software, less than | 3 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, less than | 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, less than | 10 years |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies (New Accounting Standards) (Details) - USD ($) $ in Millions | Jan. 01, 2019 | Dec. 31, 2018 | Jan. 01, 2018 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Deferred tax liability | $ 1 | ||
ASU 2014-09 [Member] | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Capitalized costs | $ 219 | ||
Deferred tax liability | $ 60 | 52 | |
ASU 2018-02 [Member] | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Retained earnings | $ 33 | ||
ASU 2016-02 [Member] | Subsequent Event [Member] | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Right-of-use asset | $ 596 | ||
Lease liability | $ 662 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies (Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income) (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Jan. 01, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Assets | |||||
Other assets | $ 2,046 | $ 2,224 | $ 2,057 | ||
Equity | |||||
Retained earnings | 17,329 | 14,608 | 14,408 | ||
Accumulated other comprehensive income (loss) | (252) | (185) | (152) | $ (163) | $ (134) |
Capitalized contract cost | 250 | 219 | $ 0 | ||
Deferred tax liability | 1 | ||||
Accounting Standards Update 2014-09 and 2018-02 [Member] | |||||
Equity | |||||
Capitalized contract cost | 219 | ||||
Deferred tax liability | 60 | 52 | |||
ASU 2014-09 [Member] | |||||
Equity | |||||
Capitalized contract cost | 250 | ||||
Deferred tax liability | $ 60 | 52 | |||
ASU 2014-09 [Member] | Adjustments [Member] | |||||
Assets | |||||
Other assets | 167 | ||||
Equity | |||||
Retained earnings | 167 | ||||
Accumulated other comprehensive income (loss) | 0 | ||||
ASU 2018-02 [Member] | Adjustments [Member] | |||||
Assets | |||||
Other assets | 0 | ||||
Equity | |||||
Retained earnings | 33 | ||||
Accumulated other comprehensive income (loss) | $ (33) |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies (Statement of Income) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |||
Expenses Excluding Interest | |||||||||||||
Compensation and benefits | $ 3,057 | $ 2,737 | $ 2,466 | ||||||||||
Taxes on income | 1,055 | 1,296 | 1,104 | ||||||||||
Net Income | $ 935 | $ 923 | $ 866 | $ 783 | $ 597 | $ 618 | $ 575 | $ 564 | 3,507 | $ 2,354 | [1] | $ 1,889 | [1] |
Balances Without Adoption of ASC 606 [Member] | ASU 2014-09 [Member] | |||||||||||||
Expenses Excluding Interest | |||||||||||||
Compensation and benefits | 3,088 | ||||||||||||
Taxes on income | 1,047 | ||||||||||||
Net Income | 3,484 | ||||||||||||
Effect of Change Higher/(Lower) [Member] | ASU 2014-09 [Member] | |||||||||||||
Expenses Excluding Interest | |||||||||||||
Compensation and benefits | (31) | ||||||||||||
Taxes on income | 8 | ||||||||||||
Net Income | $ 23 | ||||||||||||
[1] | Adjusted for the retrospective adoption of ASU 2016-18. See Note 2. |
Summary of Significant Accoun_8
Summary of Significant Accounting Policies (Balance Sheet) (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Jan. 01, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Assets | |||||
Other assets | $ 2,046 | $ 2,224 | $ 2,057 | ||
Liabilities [Abstract] | |||||
Accrued expenses and other liabilities | 2,954 | 2,810 | |||
Stockholders’ Equity | |||||
Retained earnings | 17,329 | 14,608 | 14,408 | ||
Accumulated other comprehensive income (loss) | (252) | (185) | (152) | $ (163) | $ (134) |
Capitalized contract cost | 250 | 219 | $ 0 | ||
Deferred tax liability | 1 | ||||
ASU 2014-09 [Member] | |||||
Stockholders’ Equity | |||||
Capitalized contract cost | 250 | ||||
Deferred tax liability | 60 | 52 | |||
Adjustments [Member] | ASU 2014-09 [Member] | |||||
Assets | |||||
Other assets | 167 | ||||
Stockholders’ Equity | |||||
Retained earnings | 167 | ||||
Accumulated other comprehensive income (loss) | 0 | ||||
Adjustments [Member] | ASU 2018-02 [Member] | |||||
Assets | |||||
Other assets | 0 | ||||
Stockholders’ Equity | |||||
Retained earnings | 33 | ||||
Accumulated other comprehensive income (loss) | $ (33) | ||||
Balances Without Adoption of ASC 606 [Member] | ASU 2014-09 [Member] | |||||
Assets | |||||
Other assets | 1,851 | ||||
Liabilities [Abstract] | |||||
Accrued expenses and other liabilities | 2,949 | ||||
Stockholders’ Equity | |||||
Retained earnings | 17,139 | ||||
Effect of Change Higher/(Lower) [Member] | ASU 2014-09 [Member] | |||||
Assets | |||||
Other assets | 195 | ||||
Liabilities [Abstract] | |||||
Accrued expenses and other liabilities | 5 | ||||
Stockholders’ Equity | |||||
Retained earnings | $ 190 |
Revenue Recognition (Disaggrega
Revenue Recognition (Disaggregated Revenue) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Disaggregation of Revenue [Line Items] | ||||||||||||
Interest revenue | $ 6,680 | $ 4,624 | $ 3,493 | |||||||||
Interest expense | (857) | (342) | (171) | |||||||||
Net interest revenue | 5,823 | 4,282 | 3,322 | |||||||||
Other | 317 | 290 | 276 | |||||||||
Total net revenues | $ 2,669 | $ 2,579 | $ 2,486 | $ 2,398 | $ 2,242 | $ 2,165 | $ 2,130 | $ 2,081 | 10,132 | 8,618 | 7,478 | |
Asset Management and administration fees [Member] | ||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||
Asset management and administration fees and Trading revenue | [1] | 3,229 | 3,392 | 3,055 | ||||||||
Mutual funds and ETF service fees [Member] | ||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||
Asset management and administration fees and Trading revenue | 1,793 | 2,045 | 1,853 | |||||||||
Advice solutions [Member] | ||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||
Asset management and administration fees and Trading revenue | 1,139 | 1,043 | 915 | |||||||||
Other [Member] | ||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||
Asset management and administration fees and Trading revenue | 297 | 304 | 287 | |||||||||
Trading revenue [Member] | ||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||
Asset management and administration fees and Trading revenue | 763 | 654 | 825 | |||||||||
Commissions [Member] | ||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||
Asset management and administration fees and Trading revenue | 685 | 600 | 779 | |||||||||
Principal Transactions [Member] | ||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||
Asset management and administration fees and Trading revenue | $ 78 | $ 54 | $ 46 | |||||||||
[1] | Includes fee waivers of $0, $10 million, and $224 million during the years ended December 31, 2018, 2017, and 2016, respectively, relating to Schwab-sponsored money market funds. |
Revenue Recognition (Capitalize
Revenue Recognition (Capitalized Contract Costs and Contract Balances) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Jan. 01, 2018 | Dec. 31, 2017 | |
Revenue from Contract with Customer [Abstract] | |||
Capitalized contract costs, net | $ 250 | $ 219 | $ 0 |
Amortization expense | 47 | ||
Receivables from contracts with customers | $ 307 | $ 353 |
Receivables from and Payables_3
Receivables from and Payables to Brokerage Clients (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Receivables [Abstract] | ||
Margin loans, net of allowance for doubtful accounts | $ 19,273 | $ 18,331 |
Other brokerage receivables | 2,378 | 2,245 |
Receivables from brokerage clients — net | 21,651 | 20,576 |
Payables | ||
Interest-bearing payables | 21,990 | 22,840 |
Non-interest-bearing payables | 10,736 | 8,403 |
Payables to brokerage clients | $ 32,726 | $ 31,243 |
California [Member] | Geographic Concentration Risk [Member] | Contract with Customer [Member] | ||
Concentration Risk [Line Items] | ||
Percent of client accounts | 22.00% | 22.00% |
Other Securities Owned (Summary
Other Securities Owned (Summary of Other Securities Owned) (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Other Securities Owned [Line Items] | ||
Other securities owned | $ 539 | $ 539 |
Equity and bond mutual funds [Member] | ||
Other Securities Owned [Line Items] | ||
Other securities owned | 441 | 318 |
State and municipal debt obligations [Member] | ||
Other Securities Owned [Line Items] | ||
Other securities owned | 39 | 52 |
Equity, U.S. Government and corporate debt, and other securities [Member] | ||
Other Securities Owned [Line Items] | ||
Other securities owned | 33 | 34 |
Schwab Funds money market funds [Member] | ||
Other Securities Owned [Line Items] | ||
Other securities owned | $ 26 | $ 135 |
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, 2018 | Dec. 31, 2017 |
Available for sale securities | ||
Amortized Cost | $ 66,735 | $ 50,029 |
Gross Unrealized Gains | 72 | 105 |
Gross Unrealized Losses | 229 | 139 |
Fair Value | 66,578 | 49,995 |
Held to maturity securities | ||
Amortized Cost | 144,009 | 120,926 |
Gross Unrealized Gains | 330 | 497 |
Gross Unrealized Losses | 2,301 | 1,050 |
Fair Value | 142,038 | 120,373 |
U.S. agency mortgage-backed securities [Member] | ||
Available for sale securities | ||
Amortized Cost | 25,594 | 20,915 |
Gross Unrealized Gains | 44 | 53 |
Gross Unrealized Losses | 82 | 39 |
Fair Value | 25,556 | 20,929 |
Held to maturity securities | ||
Amortized Cost | 118,064 | 101,197 |
Gross Unrealized Gains | 217 | 290 |
Gross Unrealized Losses | 2,188 | 1,034 |
Fair Value | 116,093 | 100,453 |
U.S. Treasury securities [Member] | ||
Available for sale securities | ||
Amortized Cost | 18,410 | 9,583 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 108 | 83 |
Fair Value | 18,302 | 9,500 |
Held to maturity securities | ||
Amortized Cost | 223 | 223 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 6 | 3 |
Fair Value | 217 | 220 |
Asset-backed securities [Member] | ||
Available for sale securities | ||
Amortized Cost | 10,086 | 9,019 |
Gross Unrealized Gains | 14 | 34 |
Gross Unrealized Losses | 15 | 6 |
Fair Value | 10,085 | 9,047 |
Held to maturity securities | ||
Amortized Cost | 18,502 | 12,937 |
Gross Unrealized Gains | 83 | 127 |
Gross Unrealized Losses | 39 | 2 |
Fair Value | 18,546 | 13,062 |
Corporate debt securities [Member] | ||
Available for sale securities | ||
Amortized Cost | 7,477 | 6,154 |
Gross Unrealized Gains | 10 | 16 |
Gross Unrealized Losses | 20 | 1 |
Fair Value | 7,467 | 6,169 |
Held to maturity securities | ||
Amortized Cost | 4,477 | 4,078 |
Gross Unrealized Gains | 2 | 13 |
Gross Unrealized Losses | 47 | 5 |
Fair Value | 4,432 | 4,086 |
Certificates of deposit [Member] | ||
Available for sale securities | ||
Amortized Cost | 3,682 | 2,040 |
Gross Unrealized Gains | 4 | 2 |
Gross Unrealized Losses | 1 | 1 |
Fair Value | 3,685 | 2,041 |
Held to maturity securities | ||
Amortized Cost | 200 | 200 |
Gross Unrealized Gains | 1 | 0 |
Gross Unrealized Losses | 0 | 0 |
Fair Value | 201 | 200 |
U.S. agency notes [Member] | ||
Available for sale securities | ||
Amortized Cost | 900 | 1,914 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 2 | 8 |
Fair Value | 898 | 1,906 |
U.S. state and municipal securities [Member] | ||
Held to maturity securities | ||
Amortized Cost | 1,327 | 1,247 |
Gross Unrealized Gains | 24 | 57 |
Gross Unrealized Losses | 3 | 0 |
Fair Value | 1,348 | 1,304 |
Commercial paper [Member] | ||
Available for sale securities | ||
Amortized Cost | 522 | 313 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 0 | 0 |
Fair Value | 522 | 313 |
Available-for-sale securities, current | 4,900 | |
Foreign government agency securities [Member] | ||
Available for sale securities | ||
Amortized Cost | 50 | 51 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 1 | 1 |
Fair Value | 49 | 50 |
Held to maturity securities | ||
Amortized Cost | 50 | 50 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 1 | 1 |
Fair Value | 49 | 49 |
Non-agency commercial mortgage-backed securities [Member] | ||
Available for sale securities | ||
Amortized Cost | 14 | 40 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 0 | 0 |
Fair Value | 14 | 40 |
Held to maturity securities | ||
Amortized Cost | 1,156 | 994 |
Gross Unrealized Gains | 3 | 10 |
Gross Unrealized Losses | 17 | 5 |
Fair Value | 1,142 | $ 999 |
Other [Member] | ||
Held to maturity securities | ||
Amortized Cost | 10 | |
Gross Unrealized Gains | 0 | |
Gross Unrealized Losses | 0 | |
Fair Value | $ 10 | |
Federal Family Education Loan Program Asset-Backed Securities [Member] | ||
Held to maturity securities | ||
Asset-backed securities percent | 36.00% | 42.00% |
Collateralized credit card receivables [Member] | ||
Held to maturity securities | ||
Asset-backed securities percent | 42.00% | 40.00% |
Corporate debt securities issued by financial services industry [Member] | ||
Held to maturity securities | ||
Available for sale and held to maturity securities | 26.00% | 41.00% |
Information technology [Member] | ||
Held to maturity securities | ||
Available for sale and held to maturity securities | 18.00% | 22.00% |
Investment Securities (Narrativ
Investment Securities (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2017 | |
Schedule of Held-to-maturity Securities [Line Items] | |||
Debt securities transferred from AFS to HTM | $ 24,700 | ||
Unrealized loss | $ 227 | ||
Assets | 296,482 | $ 243,274 | |
Trust Deposits [Member] | |||
Schedule of Held-to-maturity Securities [Line Items] | |||
Fair value of pledged securities | 906 | ||
Federal Reserve Bank [Member] | |||
Schedule of Held-to-maturity Securities [Line Items] | |||
Fair value of pledged securities | 7,900 | ||
FHLB [Member] | |||
Schedule of Held-to-maturity Securities [Line Items] | |||
Fair value of pledged securities | $ 27,200 | ||
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, 2018USD ($)security | Dec. 31, 2017USD ($)security |
Available for sale securities: | ||
Less than 12 months Fair Value | $ 23,503 | $ 12,909 |
Less than 12 months Unrealized Losses | 67 | 38 |
12 months or longer Fair Value | 12,888 | 9,774 |
12 months or longer Unrealized Losses | 162 | 101 |
Total Fair Value | 36,391 | 22,683 |
Total Unrealized Losses | 229 | 139 |
Held to maturity securities: | ||
Less than 12 months Fair Value | 39,327 | 45,180 |
Less than 12 months Unrealized Losses | 290 | 326 |
12 months or longer Fair Value | 58,794 | 24,825 |
12 months or longer Unrealized Losses | 2,011 | 724 |
Total Fair Value | 98,121 | 70,005 |
Total Unrealized Losses | 2,301 | 1,050 |
Total securities with unrealized losses | ||
Less than 12 months Fair Value | 62,830 | 58,089 |
Less than 12 months Unrealized Losses | 357 | 364 |
12 months or longer Fair Value | 71,682 | 34,599 |
12 months or longer Unrealized Losses | 2,173 | 825 |
Total Fair Value | 134,512 | 92,688 |
Total Unrealized Losses | $ 2,530 | $ 1,189 |
Number of available for sale securities in unrealized loss positions | security | 441 | 251 |
Number of held to maturity securities in unrealized loss positions | security | 1,524 | 938 |
U.S. agency mortgage-backed securities [Member] | ||
Available for sale securities: | ||
Less than 12 months Fair Value | $ 9,529 | $ 5,696 |
Less than 12 months Unrealized Losses | 32 | 21 |
12 months or longer Fair Value | 4,257 | 2,548 |
12 months or longer Unrealized Losses | 50 | 18 |
Total Fair Value | 13,786 | 8,244 |
Total Unrealized Losses | 82 | 39 |
Held to maturity securities: | ||
Less than 12 months Fair Value | 29,263 | 42,102 |
Less than 12 months Unrealized Losses | 222 | 310 |
12 months or longer Fair Value | 56,435 | 24,753 |
12 months or longer Unrealized Losses | 1,966 | 724 |
Total Fair Value | 85,698 | 66,855 |
Total Unrealized Losses | 2,188 | 1,034 |
U.S. Treasury securities [Member] | ||
Available for sale securities: | ||
Less than 12 months Fair Value | 4,951 | 4,625 |
Less than 12 months Unrealized Losses | 6 | 11 |
12 months or longer Fair Value | 7,037 | 4,875 |
12 months or longer Unrealized Losses | 102 | 72 |
Total Fair Value | 11,988 | 9,500 |
Total Unrealized Losses | 108 | 83 |
Held to maturity securities: | ||
Less than 12 months Fair Value | 0 | 220 |
Less than 12 months Unrealized Losses | 0 | 3 |
12 months or longer Fair Value | 218 | 0 |
12 months or longer Unrealized Losses | 6 | 0 |
Total Fair Value | 218 | 220 |
Total Unrealized Losses | 6 | 3 |
Asset-backed securities [Member] | ||
Available for sale securities: | ||
Less than 12 months Fair Value | 4,050 | 904 |
Less than 12 months Unrealized Losses | 9 | 3 |
12 months or longer Fair Value | 837 | 424 |
12 months or longer Unrealized Losses | 6 | 3 |
Total Fair Value | 4,887 | 1,328 |
Total Unrealized Losses | 15 | 6 |
Held to maturity securities: | ||
Less than 12 months Fair Value | 6,795 | 1,124 |
Less than 12 months Unrealized Losses | 35 | 2 |
12 months or longer Fair Value | 376 | 72 |
12 months or longer Unrealized Losses | 4 | 0 |
Total Fair Value | 7,171 | 1,196 |
Total Unrealized Losses | 39 | 2 |
Corporate debt securities [Member] | ||
Available for sale securities: | ||
Less than 12 months Fair Value | 3,561 | 736 |
Less than 12 months Unrealized Losses | 19 | 1 |
12 months or longer Fair Value | 254 | 120 |
12 months or longer Unrealized Losses | 1 | 0 |
Total Fair Value | 3,815 | 856 |
Total Unrealized Losses | 20 | 1 |
Held to maturity securities: | ||
Less than 12 months Fair Value | 2,909 | 1,078 |
Less than 12 months Unrealized Losses | 29 | 5 |
12 months or longer Fair Value | 1,066 | 0 |
12 months or longer Unrealized Losses | 18 | 0 |
Total Fair Value | 3,975 | 1,078 |
Total Unrealized Losses | 47 | 5 |
Certificates of deposit [Member] | ||
Available for sale securities: | ||
Less than 12 months Fair Value | 1,217 | 799 |
Less than 12 months Unrealized Losses | 1 | 1 |
12 months or longer Fair Value | 150 | 0 |
12 months or longer Unrealized Losses | 0 | 0 |
Total Fair Value | 1,367 | 799 |
Total Unrealized Losses | 1 | 1 |
Non-agency commercial mortgage-backed securities [Member] | ||
Held to maturity securities: | ||
Less than 12 months Fair Value | 283 | 607 |
Less than 12 months Unrealized Losses | 2 | 5 |
12 months or longer Fair Value | 632 | 0 |
12 months or longer Unrealized Losses | 15 | 0 |
Total Fair Value | 915 | 607 |
Total Unrealized Losses | 17 | 5 |
U.S. agency notes [Member] | ||
Available for sale securities: | ||
Less than 12 months Fair Value | 195 | 99 |
Less than 12 months Unrealized Losses | 0 | 0 |
12 months or longer Fair Value | 304 | 1,807 |
12 months or longer Unrealized Losses | 2 | 8 |
Total Fair Value | 499 | 1,906 |
Total Unrealized Losses | 2 | 8 |
U.S. state and municipal securities [Member] | ||
Held to maturity securities: | ||
Less than 12 months Fair Value | 77 | |
Less than 12 months Unrealized Losses | 2 | |
12 months or longer Fair Value | 18 | |
12 months or longer Unrealized Losses | 1 | |
Total Fair Value | 95 | |
Total Unrealized Losses | 3 | |
Foreign government agency securities [Member] | ||
Available for sale securities: | ||
Less than 12 months Fair Value | 0 | 50 |
Less than 12 months Unrealized Losses | 0 | 1 |
12 months or longer Fair Value | 49 | 0 |
12 months or longer Unrealized Losses | 1 | 0 |
Total Fair Value | 49 | 50 |
Total Unrealized Losses | 1 | 1 |
Held to maturity securities: | ||
Less than 12 months Fair Value | 0 | 49 |
Less than 12 months Unrealized Losses | 0 | 1 |
12 months or longer Fair Value | 49 | 0 |
12 months or longer Unrealized Losses | 1 | 0 |
Total Fair Value | 49 | 49 |
Total Unrealized Losses | $ 1 | $ 1 |
Investment Securities (Maturiti
Investment Securities (Maturities of Securities Available for Sale and Held to Maturity) (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Available for sale securities, fair value | ||
Within 1 year | $ 19,077 | |
After 1 year through 5 years | 23,925 | |
After 5 years through 10 years | 13,340 | |
After 10 years | 10,236 | |
Fair Value | 66,578 | $ 49,995 |
Available for sale securities, amortized cost | ||
Within 1 year | 19,111 | |
After 1 year through 5 years | 24,010 | |
After 5 years through 10 years | 13,382 | |
After 10 years | 10,232 | |
Amortized Cost | $ 66,735 | 50,029 |
Weighted-average yield | ||
Within 1 year | 1.80% | |
After 1 year through 5 years | 2.71% | |
After 1 year through 5 years | 2.61% | |
After 10 years | 2.70% | |
Total | 2.43% | |
Held to maturity securities, fair value | ||
Within 1 year | $ 393 | |
After 1 year through 5 years | 21,281 | |
After 5 years through 10 years | 44,423 | |
After 10 years | 75,941 | |
Fair Value | 142,038 | 120,373 |
Held to maturity securities, amortized cost | ||
Within 1 year | 395 | |
After 1 year through 5 years | 21,446 | |
After 5 years through 10 years | 44,925 | |
After 10 years | 77,243 | |
Amortized Cost | $ 144,009 | 120,926 |
Weighted-average yield | ||
Within 1 year | 1.97% | |
After 1 year through 5 years | 2.56% | |
After 5 years through 10 years | 2.69% | |
After 10 years | 2.63% | |
Total | 2.63% | |
U.S. agency mortgage-backed securities [Member] | ||
Available for sale securities, fair value | ||
Within 1 year | $ 153 | |
After 1 year through 5 years | 3,481 | |
After 5 years through 10 years | 12,100 | |
After 10 years | 9,822 | |
Fair Value | 25,556 | 20,929 |
Available for sale securities, amortized cost | ||
Amortized Cost | 25,594 | 20,915 |
Held to maturity securities, fair value | ||
Within 1 year | 256 | |
After 1 year through 5 years | 14,960 | |
After 5 years through 10 years | 34,008 | |
After 10 years | 66,869 | |
Fair Value | 116,093 | 100,453 |
Held to maturity securities, amortized cost | ||
Amortized Cost | 118,064 | 101,197 |
U.S. Treasury securities [Member] | ||
Available for sale securities, fair value | ||
Within 1 year | 14,164 | |
After 1 year through 5 years | 4,138 | |
After 5 years through 10 years | 0 | |
After 10 years | 0 | |
Fair Value | 18,302 | 9,500 |
Available for sale securities, amortized cost | ||
Amortized Cost | 18,410 | 9,583 |
Held to maturity securities, fair value | ||
Within 1 year | 0 | |
After 1 year through 5 years | 0 | |
After 5 years through 10 years | 217 | |
After 10 years | 0 | |
Fair Value | 217 | 220 |
Held to maturity securities, amortized cost | ||
Amortized Cost | 223 | 223 |
Asset-backed securities [Member] | ||
Available for sale securities, fair value | ||
Within 1 year | 0 | |
After 1 year through 5 years | 8,445 | |
After 5 years through 10 years | 1,240 | |
After 10 years | 400 | |
Fair Value | 10,085 | 9,047 |
Available for sale securities, amortized cost | ||
Amortized Cost | 10,086 | 9,019 |
Held to maturity securities, fair value | ||
Within 1 year | 0 | |
After 1 year through 5 years | 2,106 | |
After 5 years through 10 years | 9,144 | |
After 10 years | 7,296 | |
Fair Value | 18,546 | 13,062 |
Held to maturity securities, amortized cost | ||
Amortized Cost | 18,502 | 12,937 |
Corporate debt securities [Member] | ||
Available for sale securities, fair value | ||
Within 1 year | 1,755 | |
After 1 year through 5 years | 5,712 | |
After 5 years through 10 years | 0 | |
After 10 years | 0 | |
Fair Value | 7,467 | 6,169 |
Available for sale securities, amortized cost | ||
Amortized Cost | 7,477 | 6,154 |
Held to maturity securities, fair value | ||
Within 1 year | 137 | |
After 1 year through 5 years | 3,550 | |
After 5 years through 10 years | 745 | |
After 10 years | 0 | |
Fair Value | 4,432 | 4,086 |
Held to maturity securities, amortized cost | ||
Amortized Cost | 4,477 | 4,078 |
Certificates of deposit [Member] | ||
Available for sale securities, fair value | ||
Within 1 year | 1,984 | |
After 1 year through 5 years | 1,701 | |
After 5 years through 10 years | 0 | |
After 10 years | 0 | |
Fair Value | 3,685 | 2,041 |
Available for sale securities, amortized cost | ||
Amortized Cost | 3,682 | 2,040 |
Held to maturity securities, fair value | ||
Within 1 year | 0 | |
After 1 year through 5 years | 201 | |
After 5 years through 10 years | 0 | |
After 10 years | 0 | |
Fair Value | 201 | 200 |
Held to maturity securities, amortized cost | ||
Amortized Cost | 200 | 200 |
U.S. agency notes [Member] | ||
Available for sale securities, fair value | ||
Within 1 year | 499 | |
After 1 year through 5 years | 399 | |
After 5 years through 10 years | 0 | |
After 10 years | 0 | |
Fair Value | 898 | 1,906 |
Available for sale securities, amortized cost | ||
Amortized Cost | 900 | 1,914 |
Commercial paper [Member] | ||
Available for sale securities, fair value | ||
Within 1 year | 522 | |
After 1 year through 5 years | 0 | |
After 5 years through 10 years | 0 | |
After 10 years | 0 | |
Fair Value | 522 | 313 |
Available for sale securities, amortized cost | ||
Amortized Cost | 522 | 313 |
U.S. state and municipal securities [Member] | ||
Held to maturity securities, fair value | ||
Within 1 year | 0 | |
After 1 year through 5 years | 59 | |
After 5 years through 10 years | 309 | |
After 10 years | 980 | |
Fair Value | 1,348 | 1,304 |
Held to maturity securities, amortized cost | ||
Amortized Cost | 1,327 | 1,247 |
Foreign government agency securities [Member] | ||
Available for sale 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 | 50 |
Available for sale securities, amortized cost | ||
Amortized Cost | 50 | 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 | 49 |
Held to maturity securities, amortized cost | ||
Amortized Cost | 50 | 50 |
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 | 14 | |
Fair Value | 14 | 40 |
Available for sale securities, amortized cost | ||
Amortized Cost | 14 | 40 |
Held to maturity securities, fair value | ||
Within 1 year | 0 | |
After 1 year through 5 years | 356 | |
After 5 years through 10 years | 0 | |
After 10 years | 786 | |
Fair Value | 1,142 | 999 |
Held to maturity securities, amortized cost | ||
Amortized Cost | 1,156 | $ 994 |
Other [Member] | ||
Held to maturity securities, fair value | ||
Within 1 year | 0 | |
After 1 year through 5 years | 0 | |
After 5 years through 10 years | 0 | |
After 10 years | 10 | |
Fair Value | 10 | |
Held to maturity securities, amortized cost | ||
Amortized Cost | $ 10 |
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, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |||
Investments, Debt and Equity Securities [Abstract] | |||||
Proceeds | $ 115 | $ 8,617 | [1] | $ 5,537 | [1] |
Gross realized gains | 0 | 12 | 4 | ||
Gross realized losses | $ 0 | $ 0 | $ 0 | ||
[1] | Adjusted for the retrospective adoption of ASU 2016-18. See Note 2. |
Bank Loans and Related Allowa_3
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, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Current | $ 16,580,000,000 | $ 16,448,000,000 | ||
Past due and other nonaccrual loans | 50,000,000 | 56,000,000 | ||
Total loans | 16,630,000,000 | 16,504,000,000 | ||
Allowance for loan losses | 21,000,000 | 26,000,000 | $ 26,000,000 | $ 31,000,000 |
Total bank loans – net | 16,609,000,000 | 16,478,000,000 | ||
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 | 27,000,000 | 18,000,000 | ||
60-89 Days Past Due [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Past due and other nonaccrual loans | 3,000,000 | 9,000,000 | ||
>90 Days Past Due And Other Nonaccrual Loans [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Past due and other nonaccrual loans | 20,000,000 | 29,000,000 | ||
First Mortgage [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Current | 10,349,000,000 | 9,983,000,000 | ||
Past due and other nonaccrual loans | 35,000,000 | 33,000,000 | ||
Total loans | 10,384,000,000 | 10,016,000,000 | ||
Allowance for loan losses | 14,000,000 | 16,000,000 | 17,000,000 | 20,000,000 |
Total bank loans – net | 10,370,000,000 | 10,000,000,000 | ||
First Mortgage [Member] | 30-59 Days Past Due [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Past due and other nonaccrual loans | 21,000,000 | 14,000,000 | ||
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 | 2,000,000 | ||
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 | 12,000,000 | 17,000,000 | ||
HELOC's [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Current | 1,493,000,000 | 1,928,000,000 | ||
Past due and other nonaccrual loans | 12,000,000 | 15,000,000 | ||
Total loans | 1,505,000,000 | 1,943,000,000 | ||
Allowance for loan losses | 5,000,000 | 8,000,000 | 8,000,000 | 11,000,000 |
Total bank loans – net | 1,500,000,000 | 1,935,000,000 | ||
HELOC's [Member] | 30-59 Days Past Due [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Past due and other nonaccrual loans | 3,000,000 | 0 | ||
HELOC's [Member] | 60-89 Days Past Due [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Past due and other nonaccrual loans | 1,000,000 | 3,000,000 | ||
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 | 8,000,000 | 12,000,000 | ||
Pledged asset lines [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Current | 4,558,000,000 | 4,361,000,000 | ||
Past due and other nonaccrual loans | 3,000,000 | 8,000,000 | ||
Total loans | 4,561,000,000 | 4,369,000,000 | ||
Allowance for loan losses | 0 | 0 | ||
Total bank loans – net | 4,561,000,000 | 4,369,000,000 | ||
Pledged asset lines [Member] | 30-59 Days Past Due [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Past due and other nonaccrual loans | 3,000,000 | 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 | 0 | 4,000,000 | ||
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 | 180,000,000 | 176,000,000 | ||
Past due and other nonaccrual loans | 0 | 0 | ||
Total loans | 180,000,000 | 176,000,000 | ||
Allowance for loan losses | 2,000,000 | 2,000,000 | $ 1,000,000 | $ 0 |
Total bank loans – net | 178,000,000 | 174,000,000 | ||
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 | $ 73,000,000 | $ 77,000,000 | ||
First Mortgage And Home Equity [Member] | California [Member] | Loans Geographic Area [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Concentration risk percentage | 47.00% | 48.00% |
Bank Loans and Related Allowa_4
Bank Loans and Related Allowance for Loan Losses (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total bank loans | $ 16,630 | $ 16,504 |
First Mortgage and Home Equity Loans and Lines of Credit [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans pledged as collateral | $ 11,100 | |
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 | |
Total bank loans | $ 1,505 | $ 1,943 |
Percent of loan balance outstanding, borrowers paid only minimum interest due | 51.00% | |
Adjustable Rate First Mortgage [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Carrying amount of mortgages | $ 9,400 | |
Percent of loans with interest-only payments | 31.00% | |
Percent of interest only adjustable rate | 64.00% | |
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 | |
Home Equity Secured By Second Liens [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total bank loans | $ 1,200 |
Bank Loans and Related Allowa_5
Bank Loans and Related Allowance for Loan Losses (Changes in Allowance for Loan Losses) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Allowance for Loan and Lease Losses [Roll Forward] | |||
Balance at beginning of year | $ 26 | $ 26 | $ 31 |
Charge-offs | (1) | (3) | (2) |
Recoveries | 2 | 3 | 2 |
Provision for loan losses | (6) | 0 | (5) |
Balance at end of year | 21 | 26 | 26 |
First Mortgage [Member] | |||
Allowance for Loan and Lease Losses [Roll Forward] | |||
Balance at beginning of year | 16 | 17 | 20 |
Charge-offs | 0 | (2) | (1) |
Recoveries | 1 | 1 | 1 |
Provision for loan losses | (3) | 0 | (3) |
Balance at end of year | 14 | 16 | 17 |
HELOC's [Member] | |||
Allowance for Loan and Lease Losses [Roll Forward] | |||
Balance at beginning of year | 8 | 8 | 11 |
Charge-offs | 0 | (1) | (1) |
Recoveries | 1 | 1 | 1 |
Provision for loan losses | (4) | 0 | (3) |
Balance at end of year | 5 | 8 | 8 |
Other [Member] | |||
Allowance for Loan and Lease Losses [Roll Forward] | |||
Balance at beginning of year | 2 | 1 | 0 |
Charge-offs | (1) | 0 | 0 |
Recoveries | 0 | 1 | 0 |
Provision for loan losses | 1 | 0 | 1 |
Balance at end of year | $ 2 | $ 2 | $ 1 |
Bank Loans and Related Allowa_6
Bank Loans and Related Allowance for Loan Losses (Impaired Assets) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Troubled debt restructurings | $ 4 | $ 11 |
Impaired bank loan related assets | 28 | 42 |
Nonperforming Financial Instruments [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total nonperforming assets | 24 | 31 |
Nonperforming Financial Instruments [Member] | Nonaccrual Loans [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total nonperforming assets | 21 | 28 |
Nonperforming Financial Instruments [Member] | Other Real Estate Owned [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total nonperforming assets | $ 3 | $ 3 |
Bank Loans and Related Allowa_7
Bank Loans and Related Allowance for Loan Losses (Credit Quality Indicators of Bank Loan Portfolio) (Details) $ in Millions | Dec. 31, 2018USD ($)credit_rating | Dec. 31, 2017USD ($)credit_rating |
Financing Receivable, Recorded Investment [Line Items] | ||
Balance | $ 16,630 | $ 16,504 |
First Mortgage [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Balance | $ 10,384 | $ 10,016 |
Weighted Average Updated FICO | credit_rating | 775 | 775 |
Percent of Loans that are on Nonaccrual Status | 0.07% | 0.14% |
First Mortgage [Member] | Origination FICO Score Below 620 [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Balance | $ 5 | $ 6 |
First Mortgage [Member] | Origination FICO Score 620 Through 679 [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Balance | 83 | 89 |
First Mortgage [Member] | Origination FICO Score 680 Through 739 [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Balance | 1,626 | 1,569 |
First Mortgage [Member] | Origination FICO Score 740 And Above [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Balance | 8,670 | 8,352 |
First Mortgage [Member] | Year of origination Pre 2014 [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Balance | 1,979 | 2,804 |
First Mortgage [Member] | Year of origination 2014 [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Balance | 408 | 530 |
First Mortgage [Member] | Year of origination 2015 [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Balance | 1,050 | 1,218 |
First Mortgage [Member] | Year of origination 2016 [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Balance | 2,606 | 2,886 |
First Mortgage [Member] | Year of origination 2017 [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Balance | 2,366 | 2,578 |
First Mortgage [Member] | Year of origination 2018 [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Balance | 1,975 | |
First Mortgage [Member] | Estimated Current LTV 70% And Below [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Balance | $ 9,396 | $ 9,046 |
Weighted Average Updated FICO | credit_rating | 776 | 775 |
Percent of Loans that are on Nonaccrual Status | 0.04% | 0.09% |
First Mortgage [Member] | Estimated Current LTV Greater Than 70% through 90% [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Balance | $ 985 | $ 961 |
Weighted Average Updated FICO | credit_rating | 769 | 769 |
Percent of Loans that are on Nonaccrual Status | 0.41% | 0.46% |
First Mortgage [Member] | Estimated Current LTV Greater Than 90% through 100% [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Balance | $ 2 | $ 5 |
Weighted Average Updated FICO | credit_rating | 717 | 714 |
Percent of Loans that are on Nonaccrual Status | 0.00% | 10.49% |
First Mortgage [Member] | Estimated Current LTV Greater Than 100% [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Balance | $ 1 | $ 4 |
Weighted Average Updated FICO | credit_rating | 753 | 713 |
Percent of Loans that are on Nonaccrual Status | 0.00% | 6.23% |
First Mortgage [Member] | Origination Loan To Value Ratio 70% And Below [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Balance | $ 7,815 | $ 7,569 |
First Mortgage [Member] | Origination Loan to Value Ratio Greater Than 70% Through 90% [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Balance | 2,564 | 2,441 |
First Mortgage [Member] | Origination Loan to Value Ratio Greater Than 90% Through 100% [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Balance | 5 | 6 |
HELOC's [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Balance | $ 1,505 | $ 1,943 |
Weighted Average Updated FICO | credit_rating | 769 | 770 |
Percent of Loans that are on Nonaccrual Status | 0.17% | 0.27% |
HELOC's [Member] | Origination FICO Score Below 620 [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Balance | $ 0 | $ 1 |
HELOC's [Member] | Origination FICO Score 620 Through 679 [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Balance | 8 | 10 |
HELOC's [Member] | Origination FICO Score 680 Through 739 [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Balance | 282 | 365 |
HELOC's [Member] | Origination FICO Score 740 And Above [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Balance | 1,215 | 1,567 |
HELOC's [Member] | Year of origination Pre 2014 [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Balance | 1,051 | 1,496 |
HELOC's [Member] | Year of origination 2014 [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Balance | 89 | 116 |
HELOC's [Member] | Year of origination 2015 [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Balance | 106 | 128 |
HELOC's [Member] | Year of origination 2016 [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Balance | 95 | 111 |
HELOC's [Member] | Year of origination 2017 [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Balance | 99 | 92 |
HELOC's [Member] | Year of origination 2018 [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Balance | 65 | |
HELOC's [Member] | Estimated Current LTV 70% And Below [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Balance | $ 1,416 | $ 1,773 |
Weighted Average Updated FICO | credit_rating | 770 | 772 |
Percent of Loans that are on Nonaccrual Status | 0.13% | 0.18% |
HELOC's [Member] | Estimated Current LTV Greater Than 70% through 90% [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Balance | $ 80 | $ 148 |
Weighted Average Updated FICO | credit_rating | 752 | 755 |
Percent of Loans that are on Nonaccrual Status | 0.60% | 0.84% |
HELOC's [Member] | Estimated Current LTV Greater Than 90% through 100% [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Balance | $ 6 | $ 14 |
Weighted Average Updated FICO | credit_rating | 729 | 742 |
Percent of Loans that are on Nonaccrual Status | 3.36% | 2.85% |
HELOC's [Member] | Estimated Current LTV Greater Than 100% [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Balance | $ 3 | $ 8 |
Weighted Average Updated FICO | credit_rating | 702 | 718 |
Percent of Loans that are on Nonaccrual Status | 0.00% | 4.91% |
HELOC's [Member] | Origination Loan To Value Ratio 70% And Below [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Balance | $ 1,064 | $ 1,360 |
HELOC's [Member] | Origination Loan to Value Ratio Greater Than 70% Through 90% [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Balance | 434 | 574 |
HELOC's [Member] | Origination Loan to Value Ratio Greater Than 90% Through 100% [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Balance | 7 | 9 |
Pledged asset lines [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Balance | 4,561 | 4,369 |
Pledged asset lines [Member] | Weighted Average Loan to Value Ratio =70% [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Balance | $ 4,561 | $ 4,369 |
Weighted Average Updated FICO | credit_rating | 766 | 765 |
Percent of Loans that are on Nonaccrual Status | 0.00% | 0.00% |
Bank Loans and Related Allowa_8
Bank Loans and Related Allowance for Loan Losses (Convert to Amortizing Loans) (Details) - HELOC's [Member] $ in Millions | Dec. 31, 2018USD ($) |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Converted to amortizing loan by period end | $ 677 |
Within 1 year | 83 |
1 year – 3 years | 118 |
3 years – 5 years | 173 |
5 years | 454 |
Total | $ 1,505 |
Equipment, Office Facilities,_3
Equipment, Office Facilities, and Property (Schedule of Equipment, Office Facilities, and Property) (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Property, Plant and Equipment [Line Items] | ||
Total equipment, office facilities, and property | $ 3,932 | $ 3,551 |
Accumulated depreciation and amortization | (2,163) | (2,080) |
Total equipment, office facilities, and property — net | 1,769 | 1,471 |
Software [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total equipment, office facilities, and property | 1,699 | 1,490 |
Buildings [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total equipment, office facilities, and property | 945 | 810 |
Leasehold improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total equipment, office facilities, and property | 367 | 357 |
Construction in progress [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total equipment, office facilities, and property | 248 | 142 |
Furniture and equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total equipment, office facilities, and property | 219 | 193 |
Information technology equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total equipment, office facilities, and property | 206 | 326 |
Land [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total equipment, office facilities, and property | 179 | 167 |
Telecommunications equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total equipment, office facilities, and property | $ 69 | $ 66 |
Equipment, Office Facilities,_4
Equipment, Office Facilities, and Property (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Property, Plant and Equipment [Abstract] | |||
Depreciation and amortization expense for equipment, office facilities, and property | $ 277 | $ 232 | $ 197 |
Goodwill (Changes in Carrying A
Goodwill (Changes in Carrying Amount of Goodwill as Allocated to Reportable Segments) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
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 |
Goodwill (Narrative) (Details)
Goodwill (Narrative) (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Goodwill impairment | $ 0 | $ 0 | $ 0 |
Other Assets (Components of Oth
Other Assets (Components of Other Assets) (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Jan. 01, 2018 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||||
Interest and dividends receivable | $ 586 | $ 413 | ||
Other investments | 428 | 376 | ||
Accounts receivable | 410 | 461 | ||
Capitalized contract costs, net | 250 | 0 | $ 219 | |
Intangible assets, net of accumulated amortization of $299 and $270 | 152 | 108 | ||
Prepaid expenses | 122 | 126 | ||
FHLB stock | 32 | 405 | ||
Deferred tax asset — net | 3 | 76 | ||
Other | 63 | 92 | ||
Total other assets | 2,046 | 2,057 | $ 2,224 | |
Accumulated Amortization | 299 | 270 | ||
Indefinite-lived intangible assets | 74 | 1 | ||
Future amortization | 77 | |||
Intangible asset, amortization expense | $ 29 | $ 37 | $ 37 |
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, 2018 | Dec. 31, 2017 |
Variable Interest Entity [Line Items] | ||
Aggregate assets | $ 408 | $ 373 |
Aggregate liabilities | 188 | 203 |
Maximum exposure to loss | 462 | 429 |
LIHTC Investments [Member] | ||
Variable Interest Entity [Line Items] | ||
Aggregate assets | 338 | 304 |
Aggregate liabilities | 188 | 203 |
Maximum exposure to loss | 338 | 304 |
Other CRA Investments [Member] | ||
Variable Interest Entity [Line Items] | ||
Aggregate assets | 70 | 69 |
Aggregate liabilities | 0 | 0 |
Maximum exposure to loss | $ 124 | $ 125 |
Variable Interest Entities (Nar
Variable Interest Entities (Narrative) (Details) - LIHTC Investments [Member] | 12 Months Ended |
Dec. 31, 2018 | |
Minimum [Member] | |
Variable Interest Entity [Line Items] | |
Commitment, expected payment date | 2,019 |
Maximum [Member] | |
Variable Interest Entity [Line Items] | |
Commitment, expected payment date | 2,022 |
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, 2018 | Dec. 31, 2017 |
Interest-bearing deposits: | ||
Deposits swept from brokerage accounts | $ 212,311 | $ 148,212 |
Checking | 12,523 | 13,388 |
Savings and other | 5,827 | 7,264 |
Total interest-bearing deposits | 230,661 | 168,864 |
Non-interest-bearing deposits | 762 | 792 |
Total bank deposits | $ 231,423 | $ 169,656 |
Borrowings (Long-term Debt Incl
Borrowings (Long-term Debt Including Unamortized Debt Discounts and Premiums) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Debt Instrument [Line Items] | ||
Senior Notes | $ 6,881 | $ 4,731 |
Unamortized discount — net | (15) | (14) |
Debt issuance costs | (40) | (25) |
Total long-term debt | $ 6,878 | 4,753 |
Lease term | 20 years | |
Senior Notes [Member] | Senior Notes Due March 2018 [Member] | ||
Debt Instrument [Line Items] | ||
Fixed Interest Rate | 1.50% | |
Senior Notes | $ 0 | 625 |
Senior Notes [Member] | Senior Notes Due July 2018 [Member] | ||
Debt Instrument [Line Items] | ||
Fixed Interest Rate | 2.20% | |
Senior Notes | $ 0 | 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 2021 [Member] | ||
Debt Instrument [Line Items] | ||
Fixed Interest Rate | 3.25% | |
Senior Notes | $ 600 | 0 |
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 | 800 |
Senior Notes [Member] | Senior Notes Due 2024 [Member] | ||
Debt Instrument [Line Items] | ||
Fixed Interest Rate | 3.55% | |
Senior Notes | $ 500 | 0 |
Senior Notes [Member] | Senior Notes Due March 2025 [Member] | ||
Debt Instrument [Line Items] | ||
Fixed Interest Rate | 3.00% | |
Senior Notes | $ 375 | 375 |
Senior Notes [Member] | Senior Notes Due May 2025 [Member] | ||
Debt Instrument [Line Items] | ||
Fixed Interest Rate | 3.85% | |
Senior Notes | $ 750 | 0 |
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 | 650 |
Senior Notes [Member] | Senior Notes Due 2028 [Member] | ||
Debt Instrument [Line Items] | ||
Fixed Interest Rate | 3.20% | |
Senior Notes | $ 700 | 700 |
Senior Notes [Member] | Senior Notes Due 2029 [Member] | ||
Debt Instrument [Line Items] | ||
Fixed Interest Rate | 4.00% | |
Senior Notes | $ 600 | 0 |
Senior Notes [Member] | Floating Rate Senior Notes Due 2021 [Member] | ||
Debt Instrument [Line Items] | ||
Senior Notes | $ 600 | 0 |
Senior Notes [Member] | Floating Rate Senior Notes Due 2021 [Member] | LIBOR [Member] | ||
Debt Instrument [Line Items] | ||
Basis spread rate | 0.032% | |
Finance lease obligation [Member] | ||
Debt Instrument [Line Items] | ||
Fixed Interest Rate | 5.45% | |
Finance lease obligation | $ 52 | $ 61 |
Borrowings (Annual Maturities o
Borrowings (Annual Maturities on Long-term Debt Outstanding) (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Debt Disclosure [Abstract] | ||
2,019 | $ 8 | |
2,020 | 709 | |
2,021 | 1,209 | |
2,022 | 266 | |
2,023 | 810 | |
Thereafter | 3,931 | |
Total maturities | 6,933 | |
Unamortized discount — net | (15) | $ (14) |
Debt issuance costs | (40) | (25) |
Total long-term debt | $ 6,878 | $ 4,753 |
Borrowings (Narrative) (Details
Borrowings (Narrative) (Details) - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 |
Line of Credit Facility [Line Items] | ||
FHLB stock | $ 32,000,000 | $ 405,000,000 |
Federal Home Loan Bank Advances [Member] | ||
Line of Credit Facility [Line Items] | ||
FHLB stock | 32,000,000 | 405,000,000 |
Federal Home Loan Bank Advances [Member] | Secured Credit Facility [Member] | ||
Line of Credit Facility [Line Items] | ||
Line of credit facility, current borrowing capacity | 35,500,000,000 | 32,300,000,000 |
Borrowings on line of credit | $ 0 | $ 15,000,000,000 |
Weighted average interest rate | 1.53% |
Commitments and Contingencies_2
Commitments and Contingencies (Narrative) (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Loss Contingencies [Line Items] | |||
Rent expense | $ 146,000,000 | $ 136,000,000 | $ 123,000,000 |
Aggregate face amount of letter of credit agreements | 225,000,000 | ||
Margin Requirements [Member] | |||
Loss Contingencies [Line Items] | |||
Funds drawn under LOC's | 0 | ||
First Mortgage [Member] | |||
Loss Contingencies [Line Items] | |||
Loans purchased during period | 2,100,000,000 | 2,800,000,000 | |
Home Equity Line of Credit [Member] | |||
Loss Contingencies [Line Items] | |||
Loans purchased during period | $ 395,000,000 | $ 461,000,000 |
Commitments and Contingencies_3
Commitments and Contingencies (Commitments to Extend/Purchase) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Commitments to purchase | $ 11,314 | $ 10,368 |
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 | 11,046 | 10,060 |
First Mortgage [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Commitments to purchase | $ 268 | $ 308 |
Commitments and Contingencies_4
Commitments and Contingencies (Future Annual Minimum Rental Commitments, Net of Contractual Subleases) (Details) $ in Millions | Dec. 31, 2018USD ($) |
Operating Leases | |
2,019 | $ 131 |
2,020 | 125 |
2,021 | 101 |
2,022 | 79 |
2,023 | 72 |
Thereafter | 282 |
Total | 790 |
Subleases | |
2,019 | 4 |
2,020 | 4 |
2,021 | 4 |
2,022 | 2 |
2,023 | 1 |
Thereafter | 0 |
Total | 15 |
Net | |
2,019 | 127 |
2,020 | 121 |
2,021 | 97 |
2,022 | 77 |
2,023 | 71 |
Thereafter | 282 |
Total | $ 775 |
Commitments and Contingencies_5
Commitments and Contingencies (Purchase Obligations) (Details) $ in Millions | Dec. 31, 2018USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
2,019 | $ 475 |
2,020 | 232 |
2,021 | 71 |
2,022 | 32 |
2,023 | 22 |
Thereafter | 170 |
Total | $ 1,002 |
Financial Instruments Subject_3
Financial Instruments Subject to Off-Balance Sheet Credit Risk (Narrative) (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Securities Financing Transaction, Fair Value [Member] | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Fair value of securities borrowed | $ 99 | $ 215 |
Financial Instruments Subject_4
Financial Instruments Subject to Off-Balance Sheet Credit Risk (Offsetting Assets and Liabilities) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Resale agreements | ||
Gross Assets | $ 7,195 | $ 6,596 |
Gross Amounts Offset in the Consolidated Balance Sheets | 0 | 0 |
Net Amounts Presented in the Consolidated Balance Sheets | 7,195 | 6,596 |
Counterparty Offsetting | 0 | 0 |
Collateral | (7,195) | (6,596) |
Net Amount | 0 | 0 |
Securities borrowed | ||
Gross Assets | 101 | 222 |
Gross Amounts Offset in the Consolidated Balance Sheets | 0 | 0 |
Net Amounts Presented in the Consolidated Balance Sheets | 101 | 222 |
Counterparty Offsetting | (98) | (199) |
Collateral | (3) | (22) |
Net Amount | 0 | 1 |
Total Gross Assets | 7,296 | 6,818 |
Total Assets, Gross Amounts Offset in the Condensed Consolidated Balance Sheets | 0 | 0 |
Total Assets, Net Amounts Presented in the Condensed Consolidated Balance Sheets | 7,296 | 6,818 |
Total Assets, Gross Amounts Not Offset in the Consolidated Balance Sheet, Counterparty Offsetting | (98) | (199) |
Total Assets, Gross Amounts Not Offset in the Consolidated Balance Sheet, Collateral | (7,198) | (6,618) |
Total Assets, Net Amount | 0 | 1 |
Securities loaned | ||
Gross Liabilities | 1,184 | 966 |
Gross Amounts Offset in the Consolidated Balance Sheets | 0 | 0 |
Net Amounts Presented in the Consolidated Balance Sheets | 1,184 | 966 |
Counterparty Offsetting | (98) | (199) |
Collateral | (975) | (670) |
Net Amount | 111 | 97 |
Total Gross Liabilities | 1,184 | 966 |
Total Liabilities, Net Amounts Presented in the Consolidated Balance Sheet | 1,184 | 966 |
Total Liabilities, Gross Amounts Not Offset in the Consolidated Balance Sheet, Counterparty Offsetting | (98) | (199) |
Total Liabilities, Gross Amounts Not Offset in the Consolidated Balance Sheet, Collateral | (975) | (670) |
Total Liabilities, Net Amount | 111 | 97 |
Offsetting Assets [Line Items] | ||
Fair value of client securities available to be pledged | $ 26,628 | $ 25,905 |
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 | $ 7,400 | $ 6,700 |
Financial Instruments Subject_5
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, 2018 | Dec. 31, 2017 |
Securities Financing Transaction [Line Items] | ||
Fair value of client securities available to be pledged | $ 26,628 | $ 25,905 |
Fair value of client securities pledged | 4,581 | 5,075 |
Fulfillment of Requirements with the Options Clearing Corporation [Member] | ||
Securities Financing Transaction [Line Items] | ||
Fair value of client securities pledged | 2,315 | 2,280 |
Fulfillment of Client Short Sales [Member] | ||
Securities Financing Transaction [Line Items] | ||
Fair value of client securities pledged | 1,292 | 2,011 |
Securities Lending to Other Broker-Dealers [Member] | ||
Securities Financing Transaction [Line Items] | ||
Fair value of client securities pledged | 974 | 784 |
Fully-Paid Client Securities [Member] | ||
Securities Financing Transaction [Line Items] | ||
Fair value of client securities pledged | $ 97 | $ 78 |
Fair Values of Assets and Lia_3
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, 2018 | Dec. 31, 2017 |
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other securities owned | $ 539 | $ 539 |
Available for sale securities | 66,578 | 49,995 |
Commercial paper [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | 522 | 313 |
Certificates of deposit [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | 3,685 | 2,041 |
Equity and bond mutual funds [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other securities owned | 441 | 318 |
State and municipal debt obligations [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other securities owned | 39 | 52 |
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 | 33 | 34 |
Schwab Funds money market funds [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other securities owned | 26 | 135 |
U.S. agency mortgage-backed securities [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | 25,556 | 20,929 |
U.S. Treasury securities [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | 18,302 | 9,500 |
Asset-backed securities [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | 10,085 | 9,047 |
Corporate debt securities [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | 7,467 | 6,169 |
U.S. agency notes [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | 898 | 1,906 |
Foreign government agency securities [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | 49 | 50 |
Non-agency commercial mortgage-backed securities [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | 14 | 40 |
Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 8,292 | 2,727 |
Investments segregated and on deposit for regulatory purposes | 4,671 | 5,856 |
Other securities owned | 539 | 539 |
Available for sale securities | 66,578 | 49,995 |
Total | 80,080 | 59,117 |
Fair Value, Measurements, Recurring [Member] | Money market funds [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 3,429 | 2,727 |
Fair Value, Measurements, Recurring [Member] | Commercial paper [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 4,863 | |
Available for sale securities | 522 | 313 |
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 | 1,396 | 2,198 |
Available for sale securities | 3,685 | 2,041 |
Fair Value, Measurements, Recurring [Member] | US Government securities [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments segregated and on deposit for regulatory purposes | 3,275 | 3,658 |
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 | 441 | 318 |
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 | 39 | 52 |
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 | 33 | 34 |
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 | 26 | 135 |
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 | 25,556 | 20,929 |
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 | 18,302 | 9,500 |
Fair Value, Measurements, Recurring [Member] | Asset-backed securities [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | 10,085 | 9,047 |
Fair Value, Measurements, Recurring [Member] | Corporate debt securities [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | 7,467 | 6,169 |
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 | 898 | 1,906 |
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 | 49 | 50 |
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 | 14 | 40 |
Level 1 [Member] | Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 3,429 | 2,727 |
Investments segregated and on deposit for regulatory purposes | 0 | 0 |
Other securities owned | 470 | 455 |
Available for sale securities | 0 | 0 |
Total | 3,899 | 3,182 |
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 | 3,429 | 2,727 |
Level 1 [Member] | Fair Value, Measurements, Recurring [Member] | Commercial paper [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 0 | |
Available for sale securities | 0 | 0 |
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 |
Level 1 [Member] | Fair Value, Measurements, Recurring [Member] | US Government securities [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments segregated and on deposit for regulatory purposes | 0 | 0 |
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 | 441 | 318 |
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 |
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 | 3 | 2 |
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 | 26 | 135 |
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 |
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 |
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 |
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 |
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 |
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 | 0 |
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 |
Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 4,863 | 0 |
Investments segregated and on deposit for regulatory purposes | 4,671 | 5,856 |
Other securities owned | 69 | 84 |
Available for sale securities | 66,578 | 49,995 |
Total | 76,181 | 55,935 |
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 |
Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | Commercial paper [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 4,863 | |
Available for sale securities | 522 | 313 |
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 | 1,396 | 2,198 |
Available for sale securities | 3,685 | 2,041 |
Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | US Government securities [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments segregated and on deposit for regulatory purposes | 3,275 | 3,658 |
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 |
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 | 39 | 52 |
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 | 30 | 32 |
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 |
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 | 25,556 | 20,929 |
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 | 18,302 | 9,500 |
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 | 10,085 | 9,047 |
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 | 7,467 | 6,169 |
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 | 898 | 1,906 |
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 | 49 | 50 |
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 | 14 | 40 |
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 |
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 |
Level 3 [Member] | Fair Value, Measurements, Recurring [Member] | Commercial paper [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 0 | |
Available for sale securities | 0 | 0 |
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 |
Level 3 [Member] | Fair Value, Measurements, Recurring [Member] | US Government securities [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments segregated and on deposit for regulatory purposes | 0 | 0 |
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 |
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 |
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 |
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 |
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 |
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 |
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 |
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 |
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 |
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 | 0 |
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 |
Fair Values of Assets and Lia_4
Fair Values of Assets and Liabilities (Fair Value of Other Financial Instruments) (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Assets: | ||
Held to maturity securities | $ 142,038 | $ 120,373 |
U.S. agency mortgage-backed securities [Member] | ||
Assets: | ||
Held to maturity securities | 116,093 | 100,453 |
Asset-backed securities [Member] | ||
Assets: | ||
Held to maturity securities | 18,546 | 13,062 |
Corporate debt securities [Member] | ||
Assets: | ||
Held to maturity securities | 4,432 | 4,086 |
U.S. state and municipal securities [Member] | ||
Assets: | ||
Held to maturity securities | 1,348 | 1,304 |
Non-agency commercial mortgage-backed securities [Member] | ||
Assets: | ||
Held to maturity securities | 1,142 | 999 |
U.S. Treasury securities [Member] | ||
Assets: | ||
Held to maturity securities | 217 | 220 |
Certificates of deposit [Member] | ||
Assets: | ||
Held to maturity securities | 201 | 200 |
Foreign government agency securities [Member] | ||
Assets: | ||
Held to maturity securities | 49 | 49 |
Reported Value Measurement [Member] | ||
Assets: | ||
Cash and cash equivalents | 19,646 | 11,490 |
Cash and investments segregated and on deposit for regulatory purposes | 8,886 | 9,277 |
Receivables from brokers, dealers, and clearing organizations | 553 | 649 |
Receivables from brokerage clients — net | 21,641 | 20,568 |
Held to maturity securities | 144,009 | 120,926 |
Bank loans, net | 16,609 | 16,478 |
Other assets | 460 | 781 |
Total | 211,804 | 180,169 |
Liabilities: | ||
Bank deposits | 231,423 | 169,656 |
Payables to brokers, dealers, and clearing organizations | 1,831 | 1,287 |
Payables to brokerage clients | 32,726 | 31,243 |
Accrued expenses and other liabilities | 1,370 | 1,463 |
Short-term borrowings | 15,000 | |
Long-term debt | 6,878 | 4,753 |
Total | 274,228 | 223,402 |
Reported Value Measurement [Member] | First Mortgage [Member] | ||
Assets: | ||
Bank loans, net | 10,370 | 10,000 |
Reported Value Measurement [Member] | HELOC's [Member] | ||
Assets: | ||
Bank loans, net | 1,500 | 1,935 |
Reported Value Measurement [Member] | Pledged asset lines [Member] | ||
Assets: | ||
Bank loans, net | 4,561 | 4,369 |
Reported Value Measurement [Member] | Other [Member] | ||
Assets: | ||
Bank loans, net | 178 | 174 |
Reported Value Measurement [Member] | U.S. agency mortgage-backed securities [Member] | ||
Assets: | ||
Held to maturity securities | 118,064 | 101,197 |
Reported Value Measurement [Member] | Asset-backed securities [Member] | ||
Assets: | ||
Held to maturity securities | 18,502 | 12,937 |
Reported Value Measurement [Member] | Corporate debt securities [Member] | ||
Assets: | ||
Held to maturity securities | 4,477 | 4,078 |
Reported Value Measurement [Member] | U.S. state and municipal securities [Member] | ||
Assets: | ||
Held to maturity securities | 1,327 | 1,247 |
Reported Value Measurement [Member] | Non-agency commercial mortgage-backed securities [Member] | ||
Assets: | ||
Held to maturity securities | 1,156 | 994 |
Reported Value Measurement [Member] | U.S. Treasury securities [Member] | ||
Assets: | ||
Held to maturity securities | 223 | 223 |
Reported Value Measurement [Member] | Certificates of deposit [Member] | ||
Assets: | ||
Held to maturity securities | 200 | 200 |
Reported Value Measurement [Member] | Foreign government agency securities [Member] | ||
Assets: | ||
Held to maturity securities | 50 | 50 |
Reported Value Measurement [Member] | Other [Member] | ||
Assets: | ||
Held to maturity securities | 10 | |
Portion at Other than Fair Value Measurement [Member] | ||
Assets: | ||
Cash and cash equivalents | 19,646 | 11,490 |
Cash and investments segregated and on deposit for regulatory purposes | 8,886 | 9,277 |
Receivables from brokers, dealers, and clearing organizations | 553 | 649 |
Receivables from brokerage clients — net | 21,641 | 20,568 |
Held to maturity securities | 142,038 | 120,373 |
Bank loans, net | 16,515 | 16,485 |
Other assets | 460 | 781 |
Total | 209,739 | 179,623 |
Liabilities: | ||
Bank deposits | 231,423 | 169,656 |
Payables to brokers, dealers, and clearing organizations | 1,831 | 1,287 |
Payables to brokerage clients | 32,726 | 31,243 |
Accrued expenses and other liabilities | 1,370 | 1,463 |
Short-term borrowings | 15,000 | |
Long-term debt | 6,827 | 4,811 |
Total | 274,177 | 223,460 |
Portion at Other than Fair Value Measurement [Member] | First Mortgage [Member] | ||
Assets: | ||
Bank loans, net | 10,193 | 9,917 |
Portion at Other than Fair Value Measurement [Member] | HELOC's [Member] | ||
Assets: | ||
Bank loans, net | 1,583 | 2,025 |
Portion at Other than Fair Value Measurement [Member] | Pledged asset lines [Member] | ||
Assets: | ||
Bank loans, net | 4,561 | 4,369 |
Portion at Other than Fair Value Measurement [Member] | Other [Member] | ||
Assets: | ||
Bank loans, net | 178 | 174 |
Portion at Other than Fair Value Measurement [Member] | U.S. agency mortgage-backed securities [Member] | ||
Assets: | ||
Held to maturity securities | 116,093 | 100,453 |
Portion at Other than Fair Value Measurement [Member] | Asset-backed securities [Member] | ||
Assets: | ||
Held to maturity securities | 18,546 | 13,062 |
Portion at Other than Fair Value Measurement [Member] | Corporate debt securities [Member] | ||
Assets: | ||
Held to maturity securities | 4,432 | 4,086 |
Portion at Other than Fair Value Measurement [Member] | U.S. state and municipal securities [Member] | ||
Assets: | ||
Held to maturity securities | 1,348 | 1,304 |
Portion at Other than Fair Value Measurement [Member] | Non-agency commercial mortgage-backed securities [Member] | ||
Assets: | ||
Held to maturity securities | 1,142 | 999 |
Portion at Other than Fair Value Measurement [Member] | U.S. Treasury securities [Member] | ||
Assets: | ||
Held to maturity securities | 217 | 220 |
Portion at Other than Fair Value Measurement [Member] | Certificates of deposit [Member] | ||
Assets: | ||
Held to maturity securities | 201 | 200 |
Portion at Other than Fair Value Measurement [Member] | Foreign government agency securities [Member] | ||
Assets: | ||
Held to maturity securities | 49 | 49 |
Portion at Other than Fair Value Measurement [Member] | Other [Member] | ||
Assets: | ||
Held to maturity securities | 10 | |
Portion at Other than Fair Value Measurement [Member] | 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 |
Held to maturity securities | 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] | Level 1 [Member] | First Mortgage [Member] | ||
Assets: | ||
Bank loans, net | 0 | 0 |
Portion at Other than Fair Value Measurement [Member] | Level 1 [Member] | HELOC's [Member] | ||
Assets: | ||
Bank loans, net | 0 | 0 |
Portion at Other than Fair Value Measurement [Member] | Level 1 [Member] | Pledged asset lines [Member] | ||
Assets: | ||
Bank loans, net | 0 | 0 |
Portion at Other than Fair Value Measurement [Member] | Level 1 [Member] | Other [Member] | ||
Assets: | ||
Bank loans, net | 0 | 0 |
Portion at Other than Fair Value Measurement [Member] | Level 1 [Member] | U.S. agency mortgage-backed securities [Member] | ||
Assets: | ||
Held to maturity securities | 0 | 0 |
Portion at Other than Fair Value Measurement [Member] | Level 1 [Member] | Asset-backed securities [Member] | ||
Assets: | ||
Held to maturity securities | 0 | 0 |
Portion at Other than Fair Value Measurement [Member] | Level 1 [Member] | Corporate debt securities [Member] | ||
Assets: | ||
Held to maturity securities | 0 | 0 |
Portion at Other than Fair Value Measurement [Member] | Level 1 [Member] | U.S. state and municipal securities [Member] | ||
Assets: | ||
Held to maturity securities | 0 | 0 |
Portion at Other than Fair Value Measurement [Member] | Level 1 [Member] | Non-agency commercial mortgage-backed securities [Member] | ||
Assets: | ||
Held to maturity securities | 0 | 0 |
Portion at Other than Fair Value Measurement [Member] | Level 1 [Member] | U.S. Treasury securities [Member] | ||
Assets: | ||
Held to maturity securities | 0 | 0 |
Portion at Other than Fair Value Measurement [Member] | Level 1 [Member] | Certificates of deposit [Member] | ||
Assets: | ||
Held to maturity securities | 0 | 0 |
Portion at Other than Fair Value Measurement [Member] | Level 1 [Member] | Foreign government agency securities [Member] | ||
Assets: | ||
Held to maturity securities | 0 | 0 |
Portion at Other than Fair Value Measurement [Member] | Level 1 [Member] | Other [Member] | ||
Assets: | ||
Held to maturity securities | 0 | |
Portion at Other than Fair Value Measurement [Member] | Level 2 [Member] | ||
Assets: | ||
Cash and cash equivalents | 19,646 | 11,490 |
Cash and investments segregated and on deposit for regulatory purposes | 8,886 | 9,277 |
Receivables from brokers, dealers, and clearing organizations | 553 | 649 |
Receivables from brokerage clients — net | 21,641 | 20,568 |
Held to maturity securities | 142,038 | 120,373 |
Bank loans, net | 16,515 | 16,485 |
Other assets | 460 | 781 |
Total | 209,739 | 179,623 |
Liabilities: | ||
Bank deposits | 231,423 | 169,656 |
Payables to brokers, dealers, and clearing organizations | 1,831 | 1,287 |
Payables to brokerage clients | 32,726 | 31,243 |
Accrued expenses and other liabilities | 1,370 | 1,463 |
Short-term borrowings | 15,000 | |
Long-term debt | 6,827 | 4,811 |
Total | 274,177 | 223,460 |
Portion at Other than Fair Value Measurement [Member] | Level 2 [Member] | First Mortgage [Member] | ||
Assets: | ||
Bank loans, net | 10,193 | 9,917 |
Portion at Other than Fair Value Measurement [Member] | Level 2 [Member] | HELOC's [Member] | ||
Assets: | ||
Bank loans, net | 1,583 | 2,025 |
Portion at Other than Fair Value Measurement [Member] | Level 2 [Member] | Pledged asset lines [Member] | ||
Assets: | ||
Bank loans, net | 4,561 | 4,369 |
Portion at Other than Fair Value Measurement [Member] | Level 2 [Member] | Other [Member] | ||
Assets: | ||
Bank loans, net | 178 | 174 |
Portion at Other than Fair Value Measurement [Member] | Level 2 [Member] | U.S. agency mortgage-backed securities [Member] | ||
Assets: | ||
Held to maturity securities | 116,093 | 100,453 |
Portion at Other than Fair Value Measurement [Member] | Level 2 [Member] | Asset-backed securities [Member] | ||
Assets: | ||
Held to maturity securities | 18,546 | 13,062 |
Portion at Other than Fair Value Measurement [Member] | Level 2 [Member] | Corporate debt securities [Member] | ||
Assets: | ||
Held to maturity securities | 4,432 | 4,086 |
Portion at Other than Fair Value Measurement [Member] | Level 2 [Member] | U.S. state and municipal securities [Member] | ||
Assets: | ||
Held to maturity securities | 1,348 | 1,304 |
Portion at Other than Fair Value Measurement [Member] | Level 2 [Member] | Non-agency commercial mortgage-backed securities [Member] | ||
Assets: | ||
Held to maturity securities | 1,142 | 999 |
Portion at Other than Fair Value Measurement [Member] | Level 2 [Member] | U.S. Treasury securities [Member] | ||
Assets: | ||
Held to maturity securities | 217 | 220 |
Portion at Other than Fair Value Measurement [Member] | Level 2 [Member] | Certificates of deposit [Member] | ||
Assets: | ||
Held to maturity securities | 201 | 200 |
Portion at Other than Fair Value Measurement [Member] | Level 2 [Member] | Foreign government agency securities [Member] | ||
Assets: | ||
Held to maturity securities | 49 | 49 |
Portion at Other than Fair Value Measurement [Member] | Level 2 [Member] | Other [Member] | ||
Assets: | ||
Held to maturity securities | 10 | |
Portion at Other than Fair Value Measurement [Member] | 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 |
Held to maturity securities | 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] | Level 3 [Member] | First Mortgage [Member] | ||
Assets: | ||
Bank loans, net | 0 | 0 |
Portion at Other than Fair Value Measurement [Member] | Level 3 [Member] | HELOC's [Member] | ||
Assets: | ||
Bank loans, net | 0 | 0 |
Portion at Other than Fair Value Measurement [Member] | Level 3 [Member] | Pledged asset lines [Member] | ||
Assets: | ||
Bank loans, net | 0 | 0 |
Portion at Other than Fair Value Measurement [Member] | Level 3 [Member] | Other [Member] | ||
Assets: | ||
Bank loans, net | 0 | 0 |
Portion at Other than Fair Value Measurement [Member] | Level 3 [Member] | U.S. agency mortgage-backed securities [Member] | ||
Assets: | ||
Held to maturity securities | 0 | 0 |
Portion at Other than Fair Value Measurement [Member] | Level 3 [Member] | Asset-backed securities [Member] | ||
Assets: | ||
Held to maturity securities | 0 | 0 |
Portion at Other than Fair Value Measurement [Member] | Level 3 [Member] | Corporate debt securities [Member] | ||
Assets: | ||
Held to maturity securities | 0 | 0 |
Portion at Other than Fair Value Measurement [Member] | Level 3 [Member] | U.S. state and municipal securities [Member] | ||
Assets: | ||
Held to maturity securities | 0 | 0 |
Portion at Other than Fair Value Measurement [Member] | Level 3 [Member] | Non-agency commercial mortgage-backed securities [Member] | ||
Assets: | ||
Held to maturity securities | 0 | 0 |
Portion at Other than Fair Value Measurement [Member] | Level 3 [Member] | U.S. Treasury securities [Member] | ||
Assets: | ||
Held to maturity securities | 0 | 0 |
Portion at Other than Fair Value Measurement [Member] | Level 3 [Member] | Certificates of deposit [Member] | ||
Assets: | ||
Held to maturity securities | 0 | 0 |
Portion at Other than Fair Value Measurement [Member] | Level 3 [Member] | Foreign government agency securities [Member] | ||
Assets: | ||
Held to maturity securities | 0 | $ 0 |
Portion at Other than Fair Value Measurement [Member] | Level 3 [Member] | Other [Member] | ||
Assets: | ||
Held to maturity securities | $ 0 |
Stockholders' Equity (Narrative
Stockholders' Equity (Narrative) (Details) - USD ($) | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Oct. 25, 2018 | |
Class of Stock [Line Items] | ||||
Shares repurchased (in shares) | 22,000,000 | |||
Shares repurchased | $ 1,000,000,000 | |||
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 | |
Share repurchase, authorized amount | $ 1,000,000,000 |
Stockholders' Equity (Preferred
Stockholders' Equity (Preferred Stock Issued and Outstanding) (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Class of Stock [Line Items] | ||
Shares issued (in shares) | 1,761,000 | 1,761,000 |
Shares outstanding (in shares) | 1,761,000 | 1,761,000 |
Carrying Value | $ 2,793 | $ 2,793 |
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 | 5,000 |
Shares outstanding (in shares) | 5,000 | 5,000 |
Liquidation preference (USD per share) | $ 100,000 | |
Carrying Value | $ 492 | $ 492 |
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 Comprehensi_3
Accumulated Other Comprehensive Income (Components of Other Comprehensive Income (Loss)) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Other comprehensive income (loss) before tax | |||
Net unrealized gain (loss) | $ (123) | $ 13 | $ (44) |
Reclassification of net unrealized loss transferred to held to maturity | 0 | 227 | 0 |
Other reclassifications included in other revenue | 0 | (12) | (4) |
Change in net unrealized gain (loss) on held to maturity securities: | |||
Reclassification of net unrealized loss transferred from available for sale | 0 | (227) | 0 |
Amortization of amounts previously recorded upon transfer from available for sale | 35 | 31 | 0 |
Other | (1) | (11) | 1 |
Other comprehensive income (loss), before tax | (89) | 21 | (47) |
Tax effect | |||
Net unrealized gain (loss) | 30 | (7) | 16 |
Reclassification of net unrealized loss on securities transferred to held to maturity | 0 | (85) | 0 |
Other reclassifications included in other revenue | 0 | 4 | 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) | 0 | 85 | 0 |
Amortization of amounts previously recorded upon transfer from available for sale | (8) | (11) | 0 |
Other | 0 | 4 | 0 |
Other comprehensive income (loss) | 22 | (10) | 18 |
Net of tax | |||
Net unrealized gain (loss) | (93) | 6 | (28) |
Reclassification of net unrealized loss on securities transferred to held to maturity | 0 | 142 | 0 |
Other reclassifications included in other revenue | 0 | (8) | (2) |
Change in net unrealized gain (loss) on held to maturity securities: | |||
Reclassification of net unrealized loss on securities transferred from available for sale | 0 | (142) | 0 |
Amortization of amounts previously recorded upon transfer from available for sale | 27 | 20 | 0 |
Other | (1) | (7) | 1 |
Other comprehensive income (loss), net of tax | $ (67) | $ 11 | $ (29) |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Income (Accumulated Other Comprehensive Income Balances) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Accumulated Other Comprehensive Income | |||
Beginning Balance | $ (152) | $ (163) | $ (134) |
Other net changes | (67) | 11 | (29) |
Ending Balance | (252) | (152) | (163) |
Net unrealized gain (loss) on available for sale securities [Member] | |||
Accumulated Other Comprehensive Income | |||
Other net changes | (93) | 6 | (30) |
Other [Member] | |||
Accumulated Other Comprehensive Income | |||
Other net changes | (1) | (7) | $ 1 |
Adoption of New Accounting Standards [Member] | ASU 2018-02 [Member] | |||
Accumulated Other Comprehensive Income | |||
Other net changes | (33) | ||
Reclassification of net unrealized loss on securities transferred to held to maturity [Member] | |||
Accumulated Other Comprehensive Income | |||
Other net changes | 142 | ||
Other Reclassifications Included In Other Revenue [Member] | |||
Accumulated Other Comprehensive Income | |||
Other net changes | (8) | ||
Reclassification of net unrealized loss on 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 | $ 27 | $ 20 |
Employee Incentive, Retiremen_3
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, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Total share-based compensation expense | $ 197 | $ 153 | [1] | $ 141 | [1] |
Income tax benefit on share-based compensation expense | (47) | (57) | (53) | ||
Income tax benefit | (1,055) | (1,296) | (1,104) | ||
Accounting Standards Update 2016-09 [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Income tax benefit | 46 | 87 | |||
Stock option [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Total share-based compensation expense | 51 | 50 | 45 | ||
Restricted stock unit [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Total share-based compensation expense | 136 | 94 | 89 | ||
Restricted stock unit [Member] | Non-Officer Employee [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Total share-based compensation expense | 36 | ||||
Employee stock purchase plan [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Total share-based compensation expense | $ 10 | $ 9 | $ 7 | ||
[1] | Adjusted for the retrospective adoption of ASU 2016-18. See Note 2. |
Employee Incentive, Retiremen_4
Employee Incentive, Retirement, Deferred Compensation, and Career Achievement Plans (Employee Incentive Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
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) | 68,000,000 | ||
Total unrecognized compensation cost, net of forfeitures, related to outstanding stock options, restricted stock awards, and restricted stock units | $ 294 | ||
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 9 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 | $ 166 | $ 127 | $ 105 |
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) | 36,000,000 | ||
Minimum [Member] | Restricted stock unit [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting period | 1 year | ||
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 | 4 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, Retiremen_5
Employee Incentive, Retirement, Deferred Compensation, and Career Achievement Plans (Stock Option Activity) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Number of Options | ||
Beginning balance (in shares) | 32,000 | |
Granted (in shares) | 4,000 | |
Exercised (in shares) | (6,000) | |
Forfeited (in shares), less than | 500 | |
Expired (in shares), less than | 500 | |
Ending balance (in shares) | 30,000 | 32,000 |
Vested and expected to vest (in shares) | 30,000 | |
Vested and exercisable (in shares) | 19,000 | |
Weighted- Average Exercise Price per Share | ||
Beginning balance (USD per share) | $ 26.16 | |
Granted (USD per share) | 47.98 | |
Exercised (USD per share) | 21.65 | |
Forfeited (USD per share) | 36.05 | |
Expired (USD per share) | 19.05 | |
Ending balance (USD per share) | 30.19 | $ 26.16 |
Vested and expected to vest (USD per share) | 30.05 | |
Vested and exercisable (USD per share) | $ 23.70 | |
Weighted-Average Remaining Contractual Life | ||
Outstanding | 6 years 3 months 7 days | 6 years 4 months 17 days |
Vested and expected to vest | 6 years 2 months 26 days | |
Vested and exercisable | 4 years 10 months 9 days | |
Aggregate Intrinsic Value | ||
Outstanding | $ 373 | $ 814 |
Vested and expected to vest | 373 | |
Vested and exercisable | $ 331 |
Employee Incentive, Retiremen_6
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, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |||
Retirement Benefits [Abstract] | |||||
Weighted-average fair value of options granted per share (USD per share) | $ 14.16 | $ 13.04 | $ 8.73 | ||
Cash received from options exercised | $ 125 | $ 171 | [1] | $ 144 | [1] |
Tax benefit realized on options exercised | 35 | 70 | 38 | ||
Aggregate intrinsic value of options exercised | $ 189 | $ 241 | $ 149 | ||
[1] | Adjusted for the retrospective adoption of ASU 2016-18. See Note 2. |
Employee Incentive, Retiremen_7
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, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Weighted-average expected dividend yield | 1.42% | 1.06% | 1.22% |
Weighted-average expected volatility | 33.00% | 34.00% | 30.00% |
Weighted-average risk-free interest rate | 3.00% | 2.10% | 1.80% |
Minimum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected life | 4 years | 4 years 1 month 6 days | 4 years 8 months 12 days |
Maximum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected life | 5 years 2 months 11 days | 5 years 3 months 18 days | 7 years 3 months 18 days |
Employee Incentive, Retiremen_8
Employee Incentive, Retirement, Deferred Compensation, and Career Achievement Plans (Restricted Stock Units Activity) (Details) - Restricted stock unit [Member] shares in Thousands | 12 Months Ended |
Dec. 31, 2018$ / sharesshares | |
Number of Units | |
Outstanding Beginning Balance (in shares) | shares | 7,000 |
Granted (in shares) | shares | 3,000 |
Vested (in shares) | shares | (3,000) |
Forfeited (in shares), less than | shares | 500 |
Outstanding Ending Balance (in shares) | shares | 7,000 |
Weighted- Average Grant Date Fair Value per Unit | |
Outstanding Beginning Balance (USD per share) | $ / shares | $ 35.16 |
Granted (USD per share) | $ / shares | 47.03 |
Vested (USD per share) | $ / shares | 35.95 |
Forfeited (USD per share) | $ / shares | 36.10 |
Outstanding Ending Balance (USD per share) | $ / shares | $ 40.64 |
Non-Officer Employee [Member] | |
Number of Units | |
Granted (in shares) | shares | 781 |
Weighted- Average Grant Date Fair Value per Unit | |
Granted (USD per share) | $ / shares | $ 45.87 |
Employee Incentive, Retiremen_9
Employee Incentive, Retirement, Deferred Compensation, and Career Achievement Plans (Retirement and Deferred Compensation Plans Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Retirement Benefits [Abstract] | |||
Company's total contribution expense | $ 105 | $ 92 | $ 83 |
Deferred compensation liability | $ 144 | $ 160 |
Employee Incentive, Retireme_10
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, 2018 | Dec. 31, 2017 | |
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | ||
Projected benefit obligation at beginning of year | $ 44 | $ 26 |
Benefit cost | 11 | 9 |
Actuarial (gain)/loss | 1 | 9 |
Projected benefit obligation at the end of year | $ 56 | $ 44 |
Taxes on Income (Narrative) (De
Taxes on Income (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Jan. 01, 2018 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Effective tax rate | 23.10% | 35.50% | 36.90% | ||
Remeasurement of net deferred tax assets | $ 46 | ||||
Capitalized contract cost | 0 | $ 250 | $ 0 | $ 219 | |
Deferred tax liability | 1 | ||||
Unrecognized tax benefits | 111 | 112 | 111 | $ 93 | |
Unrecognized tax benefits that, if recognized, would affect the annual effective tax rate | 104 | 108 | 104 | ||
Unrecognized tax benefits, interest and penalties accrued | $ 5 | 9 | $ 5 | ||
ASU 2018-02 [Member] | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Increase in retained earnings | 33 | ||||
Accounting Standards Update 2014-09 and 2018-02 [Member] | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Capitalized contract cost | 219 | ||||
Deferred tax liability | $ 60 | $ 52 |
Taxes on Income (Income Tax Exp
Taxes on Income (Income Tax Expense) (Details) - USD ($) $ in Millions | 12 Months Ended | ||||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |||
Current: | |||||
Federal | $ 847 | $ 1,132 | $ 980 | ||
State | 159 | 106 | 109 | ||
Total current | 1,006 | 1,238 | 1,089 | ||
Deferred: | |||||
Federal | 42 | 58 | 13 | ||
State | 7 | 0 | 2 | ||
Total deferred | 49 | 58 | [1] | 15 | [1] |
Taxes on income | $ 1,055 | $ 1,296 | $ 1,104 | ||
[1] | Adjusted for the retrospective adoption of ASU 2016-18. See Note 2. |
Taxes on Income (Temporary Diff
Taxes on Income (Temporary Differences That Created Deferred Tax Assets and Liabilities) (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Deferred tax assets: | ||
Employee compensation, severance, and benefits | $ 132 | $ 133 |
Net unrealized loss on available for sale securities | 79 | 57 |
Reserves and allowances | 13 | 15 |
Facilities lease commitments | 12 | 14 |
State and local taxes | 21 | 12 |
Net operating loss carryforwards | 5 | 5 |
Other | 6 | 3 |
Total deferred tax assets | 268 | 239 |
Valuation allowance | (3) | (2) |
Deferred tax assets — net of valuation allowance | 265 | 237 |
Deferred tax liabilities: | ||
Capitalized internal-use software development costs | (98) | (89) |
Depreciation and amortization | (108) | (72) |
Capitalized contract costs | (60) | 0 |
Total deferred tax liabilities | (266) | (161) |
Deferred tax asset/(liability) — net | (1) | |
Deferred tax asset/(liability) — net | $ 3 | $ 76 |
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, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |||
Federal statutory income tax rate | 21.00% | 35.00% | 35.00% |
State income taxes, net of federal tax benefit | 3.00% | 2.20% | 2.40% |
Equity compensation benefit | (1.00%) | (2.40%) | (0.00%) |
Other | 0.10% | 0.70% | (0.50%) |
Effective income tax rate | 23.10% | 35.50% | 36.90% |
Taxes on Income (Reconciliati_2
Taxes on Income (Reconciliation of Beginning and Ending Amount of Unrecognized Tax Benefits) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | ||
Balance at beginning of year | $ 111 | $ 93 |
Additions for tax positions related to the current year | 3 | 22 |
Additions for tax positions related to prior years | 3 | 15 |
Reductions for tax positions related to prior years | (4) | (2) |
Reductions due to lapse of statute of limitations | 0 | 0 |
Reductions for settlements with tax authorities | (1) | (17) |
Balance at end of year | $ 112 | $ 111 |
Regulatory Requirements (Regula
Regulatory Requirements (Regulatory Capital and Ratios) (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
CSC [Member] | ||
Common Equity Tier 1 Risk-Based Capital | ||
Actual Amount | $ 16,813 | $ 14,630 |
Actual Ratio | 17.60% | 19.30% |
Minimum Capital Requirement | $ 4,295 | $ 3,414 |
Minimum Capital Requirement Ratio | 4.50% | 4.50% |
Tier 1 Risk-Based Capital | ||
Actual Amount | $ 19,606 | $ 17,423 |
Actual Ratio | 20.50% | 23.00% |
Minimum Capital Requirement Amount | $ 5,726 | $ 4,552 |
Minimum Capital Requirement Ratio | 6.00% | 6.00% |
Total Risk-Based Capital | ||
Actual Amount | $ 19,628 | $ 17,452 |
Actual Ratio | 20.60% | 23.00% |
Minimum Capital Requirement Amount | $ 7,635 | $ 6,069 |
Minimum Capital Requirement Ratio | 8.00% | 8.00% |
Tier 1 Leverage | ||
Actual Amount | $ 19,606 | $ 17,423 |
Actual Ratio | 7.10% | 7.60% |
Minimum Capital Requirement Amount | $ 11,058 | $ 9,218 |
Minimum Capital Requirement Ratio | 4.00% | 4.00% |
CSB [Member] | ||
Common Equity Tier 1 Risk-Based Capital | ||
Actual Amount | $ 15,832 | $ 13,355 |
Actual Ratio | 19.70% | 20.10% |
Minimum to be Well Capitalized | $ 5,233 | $ 4,324 |
Minimum to be Well Capitalized Ratio | 6.50% | 6.50% |
Minimum Capital Requirement | $ 3,623 | $ 2,993 |
Minimum Capital Requirement Ratio | 4.50% | 4.50% |
Tier 1 Risk-Based Capital | ||
Actual Amount | $ 15,832 | $ 13,355 |
Actual Ratio | 19.70% | 20.10% |
Minimum to be Well Capitalized Amount | $ 6,441 | $ 5,321 |
Minimum to be Well Capitalized Ratio | 8.00% | 8.00% |
Minimum Capital Requirement Amount | $ 4,831 | $ 3,991 |
Minimum Capital Requirement Ratio | 6.00% | 6.00% |
Total Risk-Based Capital | ||
Actual Amount | $ 15,853 | $ 13,382 |
Actual Ratio | 19.70% | 20.10% |
Minimum to be Well Capitalized Amount | $ 8,051 | $ 6,652 |
Minimum to be Well Capitalized Ratio | 10.00% | 10.00% |
Minimum Capital Requirement Amount | $ 6,441 | $ 5,321 |
Minimum Capital Requirement Ratio | 8.00% | 8.00% |
Tier 1 Leverage | ||
Actual Amount | $ 15,832 | $ 13,355 |
Actual Ratio | 7.20% | 7.10% |
Minimum to be Well Capitalized Amount | $ 11,044 | $ 9,462 |
Minimum to be Well Capitalized Ratio | 5.00% | 5.00% |
Minimum Capital Requirement Amount | $ 8,836 | $ 7,569 |
Minimum Capital Requirement Ratio | 4.00% | 4.00% |
Regulatory Requirements (Narrat
Regulatory Requirements (Narrative) (Details) - USD ($) $ in Millions | Jan. 03, 2019 | Dec. 31, 2018 | Jan. 03, 2018 | Dec. 31, 2017 |
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||||
Schwab Bank's average reserve requirement | $ 1,600 | $ 1,600 | ||
Total assets | 296,482 | 243,274 | ||
Cash and investments required to be segregated and on deposit for regulatory purposes | 16,700 | $ 15,300 | ||
Reserve Deposit [Member] | ||||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||||
Net amount of segregated cash deposited into segregated reserve bank accounts | $ 704 | |||
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 | $ 3,700 | |||
CSSB [Member] | ||||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||||
Total assets | $ 15,200 |
Regulatory Requirements (Net Ca
Regulatory Requirements (Net Capital and Net Capital Requirements for CS&Co) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Banking and Thrift [Abstract] | ||
Net capital | $ 2,304,000 | $ 2,118,000 |
Minimum net capital required | 250 | 250 |
2% of Aggregate Debit Balances | 436,000 | 435,000 |
Net capital in excess of required net capital | $ 1,868,000 | $ 1,683,000 |
Segment Information (Narrative)
Segment Information (Narrative) (Details) | 12 Months Ended |
Dec. 31, 2018segment | |
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, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||||
Net Revenues | ||||||||||||||
Net interest revenue | $ 5,823 | $ 4,282 | $ 3,322 | |||||||||||
Other | 317 | 290 | 276 | |||||||||||
Total net revenues | $ 2,669 | $ 2,579 | $ 2,486 | $ 2,398 | $ 2,242 | $ 2,165 | $ 2,130 | $ 2,081 | 10,132 | 8,618 | 7,478 | |||
Total Expenses Excluding Interest | $ 1,459 | $ 1,360 | $ 1,355 | $ 1,396 | $ 1,289 | $ 1,220 | $ 1,221 | $ 1,238 | 5,570 | 4,968 | 4,485 | |||
Income before taxes on income | 4,562 | 3,650 | 2,993 | |||||||||||
Capital expenditures | 576 | 412 | 353 | |||||||||||
Depreciation and amortization | 306 | 269 | [1] | 234 | [1] | |||||||||
Investor Services [Member] | ||||||||||||||
Net Revenues | ||||||||||||||
Net interest revenue | 4,341 | 3,231 | 2,591 | |||||||||||
Other | 245 | 217 | 203 | |||||||||||
Total net revenues | 7,321 | 6,200 | 5,411 | |||||||||||
Total Expenses Excluding Interest | 4,145 | 3,725 | 3,380 | |||||||||||
Income before taxes on income | 3,176 | 2,475 | 2,031 | |||||||||||
Capital expenditures | 390 | 265 | 234 | |||||||||||
Depreciation and amortization | 186 | 203 | 180 | |||||||||||
Advisor Services [Member] | ||||||||||||||
Net Revenues | ||||||||||||||
Net interest revenue | 1,482 | 1,051 | 731 | |||||||||||
Other | 72 | 73 | 73 | |||||||||||
Total net revenues | 2,811 | 2,418 | 2,067 | |||||||||||
Total Expenses Excluding Interest | 1,425 | 1,243 | 1,105 | |||||||||||
Income before taxes on income | 1,386 | 1,175 | 962 | |||||||||||
Capital expenditures | 186 | 147 | 119 | |||||||||||
Depreciation and amortization | 120 | 66 | 54 | |||||||||||
Asset Management and administration fees [Member] | ||||||||||||||
Net Revenues | ||||||||||||||
Asset management and administration fees and Trading revenue | [2] | 3,229 | 3,392 | 3,055 | ||||||||||
Asset Management and administration fees [Member] | Investor Services [Member] | ||||||||||||||
Net Revenues | ||||||||||||||
Asset management and administration fees and Trading revenue | 2,260 | 2,344 | 2,093 | |||||||||||
Asset Management and administration fees [Member] | Advisor Services [Member] | ||||||||||||||
Net Revenues | ||||||||||||||
Asset management and administration fees and Trading revenue | 969 | 1,048 | 962 | |||||||||||
Trading revenue [Member] | ||||||||||||||
Net Revenues | ||||||||||||||
Asset management and administration fees and Trading revenue | 763 | 654 | 825 | |||||||||||
Trading revenue [Member] | Investor Services [Member] | ||||||||||||||
Net Revenues | ||||||||||||||
Asset management and administration fees and Trading revenue | 475 | 408 | 524 | |||||||||||
Trading revenue [Member] | Advisor Services [Member] | ||||||||||||||
Net Revenues | ||||||||||||||
Asset management and administration fees and Trading revenue | $ 288 | $ 246 | $ 301 | |||||||||||
[1] | Adjusted for the retrospective adoption of ASU 2016-18. See Note 2. | |||||||||||||
[2] | Includes fee waivers of $0, $10 million, and $224 million during the years ended December 31, 2018, 2017, and 2016, respectively, relating to Schwab-sponsored money market funds. |
The Charles Schwab Corporatio_3
The Charles Schwab Corporation – Parent Company Only Financial Statements (Condensed Statements of Income) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||||
Condensed Income Statements, Captions [Line Items] | ||||||||||||||
Interest revenue | $ 6,680 | $ 4,624 | $ 3,493 | |||||||||||
Interest expense | (857) | (342) | (171) | |||||||||||
Net interest revenue | 5,823 | 4,282 | 3,322 | |||||||||||
Other | 317 | 290 | 276 | |||||||||||
Expenses excluding interest | $ (1,459) | $ (1,360) | $ (1,355) | $ (1,396) | $ (1,289) | $ (1,220) | $ (1,221) | $ (1,238) | (5,570) | (4,968) | (4,485) | |||
Income tax benefit | (1,055) | (1,296) | (1,104) | |||||||||||
Equity in net income of subsidiaries: | ||||||||||||||
Net Income | 935 | 923 | 866 | 783 | 597 | 618 | 575 | 564 | 3,507 | 2,354 | [1] | 1,889 | [1] | |
Preferred stock dividends and other | [2] | 178 | 174 | 143 | ||||||||||
Net Income Available to Common Stockholders | $ 885 | $ 885 | $ 813 | $ 746 | $ 550 | $ 575 | $ 530 | $ 525 | 3,329 | 2,180 | 1,746 | |||
Parent Company [Member] | ||||||||||||||
Condensed Income Statements, Captions [Line Items] | ||||||||||||||
Interest revenue | 88 | 33 | 22 | |||||||||||
Interest expense | (184) | (114) | (100) | |||||||||||
Net interest revenue | (96) | (81) | (78) | |||||||||||
Other | 1 | 3 | 1 | |||||||||||
Expenses excluding interest | (85) | (32) | (21) | |||||||||||
Loss before income tax benefit and equity in net income of subsidiaries | (180) | (110) | (98) | |||||||||||
Income tax benefit | 20 | 27 | 34 | |||||||||||
Loss before equity in net income of subsidiaries | (160) | (83) | (64) | |||||||||||
Equity in net income of subsidiaries: | ||||||||||||||
Equity in undistributed net income of subsidiaries | 2,590 | 1,479 | 1,690 | |||||||||||
Dividends from bank subsidiaries | 750 | 625 | 0 | |||||||||||
Dividends from non-bank subsidiaries | 327 | 333 | 263 | |||||||||||
Net Income | 3,507 | 2,354 | 1,889 | |||||||||||
Preferred stock dividends and other | 178 | 174 | 143 | |||||||||||
Net Income Available to Common Stockholders | $ 3,329 | $ 2,180 | $ 1,746 | |||||||||||
[1] | Adjusted for the retrospective adoption of ASU 2016-18. See Note 2. | |||||||||||||
[2] | Includes preferred stock dividends and undistributed earnings and dividends allocated to non-vested restricted stock units. |
The Charles Schwab Corporatio_4
The Charles Schwab Corporation – Parent Company Only Financial Statements (Condensed Balance Sheets) (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Jan. 01, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |||
Assets | ||||||||
Cash and cash equivalents | [1] | $ 27,938 | $ 14,217 | [2] | $ 10,828 | [2] | ||
Available for sale securities | 66,578 | 49,995 | ||||||
Held to maturity securities | 144,009 | 120,926 | ||||||
Other securities owned — at fair value | 539 | 539 | ||||||
Other assets | 2,046 | $ 2,224 | 2,057 | |||||
Total assets | 296,482 | 243,274 | ||||||
Liabilities and Stockholders’ Equity | ||||||||
Accrued expenses and other liabilities | 2,954 | 2,810 | ||||||
Long-term debt | 6,878 | 4,753 | ||||||
Total liabilities | 275,812 | 224,749 | ||||||
Stockholders’ equity | 20,670 | 18,525 | 16,421 | $ 13,402 | ||||
Total liabilities and stockholders’ equity | 296,482 | 243,274 | ||||||
Parent Company [Member] | ||||||||
Assets | ||||||||
Cash and cash equivalents | 2,092 | 2,825 | $ 1,189 | $ 1,007 | ||||
Receivables from subsidiaries | 784 | 571 | ||||||
Available for sale securities | 1,754 | 573 | ||||||
Held to maturity securities | 223 | 223 | ||||||
Other securities owned — at fair value | 109 | 76 | ||||||
Loans to non-bank subsidiaries | 185 | 448 | ||||||
Investment in non-bank subsidiaries | 5,507 | 5,393 | ||||||
Investment in bank subsidiaries | 16,995 | 13,224 | ||||||
Other assets | 228 | 160 | ||||||
Total assets | 27,877 | 23,493 | ||||||
Liabilities and Stockholders’ Equity | ||||||||
Accrued expenses and other liabilities | 379 | 276 | ||||||
Payables to subsidiaries | 2 | 0 | ||||||
Long-term debt | 6,826 | 4,692 | ||||||
Total liabilities | 7,207 | 4,968 | ||||||
Stockholders’ equity | 20,670 | 18,525 | ||||||
Total liabilities and stockholders’ equity | $ 27,877 | $ 23,493 | ||||||
[1] | Reconciliation of cash, cash equivalents and amounts reported within the balance sheet | |||||||
[2] | Adjusted for the retrospective adoption of ASU 2016-18. See Note 2. |
The Charles Schwab Corporatio_5
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, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |||||
Cash Flows from Operating Activities | |||||||||||||||
Net income | $ 935 | $ 923 | $ 866 | $ 783 | $ 597 | $ 618 | $ 575 | $ 564 | $ 3,507 | $ 2,354 | [1] | $ 1,889 | [1] | ||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||||||
Other | 137 | 51 | [1] | 4 | [1] | ||||||||||
Net change in: | |||||||||||||||
Other securities owned | 0 | (90) | [1] | 84 | [1] | ||||||||||
Other assets | (104) | (177) | [1] | (93) | [1] | ||||||||||
Accrued expenses and other liabilities | 40 | 421 | [1] | 167 | [1] | ||||||||||
Net cash provided by (used for) operating activities | 12,456 | (839) | [1] | 3,603 | [1] | ||||||||||
Cash Flows from Investing Activities | |||||||||||||||
Purchases of available for sale securities | (32,801) | (15,033) | [1] | (29,248) | [1] | ||||||||||
Proceeds from sales of available for sale securities | 115 | 8,617 | [1] | 5,537 | [1] | ||||||||||
Principal payments on available for sale securities | 16,016 | 9,095 | [1] | 11,903 | [1] | ||||||||||
Other investing activities | (96) | (59) | [1] | (39) | [1] | ||||||||||
Net cash provided by (used for) investing activities | (40,555) | (20,473) | [1] | (38,775) | [1] | ||||||||||
Cash Flows from Financing Activities | |||||||||||||||
Issuance of long-term debt | 3,024 | 2,129 | [1] | 0 | [1] | ||||||||||
Repayment of long-term debt | (909) | (257) | [1] | (7) | [1] | ||||||||||
Repurchases of common stock | (1,000) | 0 | [1] | 0 | [1] | ||||||||||
Net proceeds from preferred stock offerings | 0 | 492 | [1] | 1,316 | [1] | ||||||||||
Redemption of preferred stock | 0 | (485) | [1] | 0 | [1] | ||||||||||
Dividends paid | (787) | (592) | [1] | (486) | [1] | ||||||||||
Proceeds from stock options exercised | 125 | 171 | [1] | 144 | [1] | ||||||||||
Other financing activities | (54) | (45) | [1] | 44 | [1] | ||||||||||
Net cash provided by (used for) financing activities | 47,166 | 22,599 | [1] | 34,963 | [1] | ||||||||||
Cash and Cash Equivalents at Beginning of Year | [1],[2] | 14,217 | 10,828 | 14,217 | 10,828 | ||||||||||
Cash and Cash Equivalents at End of Year | [2] | 27,938 | 14,217 | [1] | 27,938 | 14,217 | [1] | 10,828 | [1] | ||||||
Parent Company [Member] | |||||||||||||||
Cash Flows from Operating Activities | |||||||||||||||
Net income | 3,507 | 2,354 | 1,889 | ||||||||||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||||||
Equity in undistributed earnings of subsidiaries | (2,590) | (1,479) | (1,690) | ||||||||||||
Other | 13 | 5 | (37) | ||||||||||||
Net change in: | |||||||||||||||
Other securities owned | (33) | (1) | (10) | ||||||||||||
Other assets | 28 | (26) | (27) | ||||||||||||
Accrued expenses and other liabilities | 28 | 44 | 30 | ||||||||||||
Net cash provided by (used for) operating activities | 953 | 897 | 155 | ||||||||||||
Cash Flows from Investing Activities | |||||||||||||||
Due from (to) subsidiaries — net | 408 | (374) | 95 | ||||||||||||
Increase in investments in subsidiaries | (1,188) | (342) | (1,547) | ||||||||||||
Repayments (Advances) of subordinated loan to CS&Co | (185) | 0 | 465 | ||||||||||||
Purchases of available for sale securities | (1,751) | (201) | (2) | ||||||||||||
Proceeds from sales of available for sale securities | 0 | 197 | 2 | ||||||||||||
Principal payments on available for sale securities | 573 | 0 | 0 | ||||||||||||
Other investing activities | (5) | (6) | (4) | ||||||||||||
Net cash provided by (used for) investing activities | (2,148) | (726) | (991) | ||||||||||||
Cash Flows from Financing Activities | |||||||||||||||
Issuance of long-term debt | 3,024 | 2,129 | 0 | ||||||||||||
Repayment of long-term debt | (900) | (250) | 0 | ||||||||||||
Repurchases of common stock | (1,000) | 0 | 0 | ||||||||||||
Net proceeds from preferred stock offerings | 0 | 492 | 1,316 | ||||||||||||
Redemption of preferred stock | 0 | (485) | 0 | ||||||||||||
Dividends paid | (787) | (592) | (486) | ||||||||||||
Proceeds from stock options exercised | 125 | 171 | 144 | ||||||||||||
Other financing activities | 0 | 0 | 44 | ||||||||||||
Net cash provided by (used for) financing activities | 462 | 1,465 | 1,018 | ||||||||||||
Increase (Decrease) in Cash and Cash Equivalents | (733) | 1,636 | 182 | ||||||||||||
Cash and Cash Equivalents at Beginning of Year | $ 2,825 | $ 1,189 | 2,825 | 1,189 | 1,007 | ||||||||||
Cash and Cash Equivalents at End of Year | $ 2,092 | $ 2,825 | $ 2,092 | $ 2,825 | $ 1,189 | ||||||||||
[1] | Adjusted for the retrospective adoption of ASU 2016-18. See Note 2. | ||||||||||||||
[2] | Reconciliation of cash, cash equivalents and amounts reported within the balance sheet |
Quarterly Financial Informati_3
Quarterly Financial Information (Unaudited) (Schedule of Quarterly Financial Information) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||||
Quarterly Financial Information Disclosure [Abstract] | ||||||||||||||
Total Net Revenues | $ 2,669 | $ 2,579 | $ 2,486 | $ 2,398 | $ 2,242 | $ 2,165 | $ 2,130 | $ 2,081 | $ 10,132 | $ 8,618 | $ 7,478 | |||
Total Expenses Excluding Interest | 1,459 | 1,360 | 1,355 | 1,396 | 1,289 | 1,220 | 1,221 | 1,238 | 5,570 | 4,968 | 4,485 | |||
Net Income | 935 | 923 | 866 | 783 | 597 | 618 | 575 | 564 | 3,507 | 2,354 | [1] | 1,889 | [1] | |
Net Income Available to Common Stockholders | $ 885 | $ 885 | $ 813 | $ 746 | $ 550 | $ 575 | $ 530 | $ 525 | $ 3,329 | $ 2,180 | $ 1,746 | |||
Weighted Average Common Shares Outstanding - Basic (in shares) | 1,343,000 | 1,351,000 | 1,350,000 | 1,347,000 | 1,343,000 | 1,339,000 | 1,338,000 | 1,336,000 | 1,348,000 | 1,339,000 | 1,324,000 | |||
Weighted Average Common Shares Outstanding - Diluted (in shares) | 1,354,000 | 1,364,000 | 1,364,000 | 1,362,000 | 1,358,000 | 1,353,000 | 1,351,000 | 1,351,000 | 1,361,000 | [2] | 1,353,250 | [2] | 1,334,000 | [2] |
Basic (USD per share) | $ 0.66 | $ 0.66 | $ 0.60 | $ 0.55 | $ 0.41 | $ 0.43 | $ 0.40 | $ 0.39 | $ 2.47 | $ 1.63 | $ 1.32 | |||
Diluted (USD per share) | 0.65 | 0.65 | 0.60 | 0.55 | 0.41 | 0.42 | 0.39 | 0.39 | 2.45 | 1.61 | 1.31 | |||
Dividends Declared Per Common Share (USD per share) | $ 0.13 | $ 0.13 | $ 0.1 | $ 0.1 | $ 0.08 | $ 0.08 | $ 0.08 | $ 0.08 | $ 0.46 | $ 0.32 | $ 0.27 | |||
[1] | Adjusted for the retrospective adoption of ASU 2016-18. See Note 2. | |||||||||||||
[2] | Antidilutive stock options and restricted stock units excluded from the calculation of diluted EPS totaled 18 million, 15 million, and 26 million shares in 2018, 2017, and 2016, respectively. |
Subsequent Event (Details)
Subsequent Event (Details) - USD ($) | Jan. 30, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Oct. 25, 2018 |
Subsequent Event [Line Items] | |||||||||||||
Dividends Declared Per Common Share (USD per share) | $ 0.13 | $ 0.13 | $ 0.1 | $ 0.1 | $ 0.08 | $ 0.08 | $ 0.08 | $ 0.08 | $ 0.46 | $ 0.32 | $ 0.27 | ||
Common Stock [Member] | |||||||||||||
Subsequent Event [Line Items] | |||||||||||||
Share repurchase, authorized amount | $ 1,000,000,000 | ||||||||||||
Common Stock [Member] | Subsequent Event [Member] | |||||||||||||
Subsequent Event [Line Items] | |||||||||||||
Share repurchase, authorized amount | $ 4,000,000,000 | ||||||||||||
Cash dividends increase (USD per share) | $ 0.04 | ||||||||||||
Cash percent dividends increase | 31.00% | ||||||||||||
Dividends Declared Per Common Share (USD per share) | $ 0.17 |