Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
In Billions, except Share data, unless otherwise specified | Dec. 31, 2013 | Jan. 31, 2014 | Jun. 30, 2013 |
Document and Entity Information [Abstract] | ' | ' | ' |
Document Type | '10-K | ' | ' |
Amendment Flag | 'false | ' | ' |
Document Period End Date | 31-Dec-13 | ' | ' |
Document Fiscal Year Focus | '2013 | ' | ' |
Document Fiscal Period Focus | 'FY | ' | ' |
Trading Symbol | 'SCHW | ' | ' |
Entity Registrant Name | 'SCHWAB CHARLES CORP | ' | ' |
Entity Central Index Key | '0000316709 | ' | ' |
Current Fiscal Year End Date | '--12-31 | ' | ' |
Entity Well-known Seasoned Issuer | 'Yes | ' | ' |
Entity Current Reporting Status | 'Yes | ' | ' |
Entity Voluntary Filers | 'No | ' | ' |
Entity Filer Category | 'Large Accelerated Filer | ' | ' |
Entity Common Stock, Shares Outstanding | ' | 1,298,566,869 | ' |
Entity Public Float | ' | ' | $23.70 |
Consolidated_Statements_of_Inc
Consolidated Statements of Income (USD $) | 12 Months Ended | |||||
In Millions, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |||
Net Revenues: | ' | ' | ' | |||
Asset management and administration fees | $2,315 | $2,043 | $1,928 | |||
Interest revenue | 2,085 | 1,914 | 1,900 | |||
Interest expense | -105 | -150 | -175 | |||
Net interest revenue | 1,980 | 1,764 | 1,725 | |||
Trading revenue | 913 | 868 | 927 | |||
Other — net | 236 | [1] | 256 | [1] | 160 | [1] |
Provision for loan losses | 1 | -16 | -18 | |||
Net impairment losses on securities | -10 | [2] | -32 | [2] | -31 | [2] |
Total net revenues | 5,435 | 4,883 | 4,691 | |||
Expenses Excluding Interest | ' | ' | ' | |||
Compensation and benefits | 2,027 | 1,803 | 1,732 | |||
Professional services | 415 | 388 | 387 | |||
Occupancy and equipment | 309 | 311 | 301 | |||
Advertising and market development | 257 | 241 | 228 | |||
Communications | 220 | 220 | 220 | |||
Depreciation and amortization | 202 | 196 | 155 | |||
Class action litigation and regulatory reserve | ' | ' | 7 | |||
Other | 300 | 274 | 269 | |||
Total expenses excluding interest | 3,730 | 3,433 | 3,299 | |||
Income before taxes on income | 1,705 | 1,450 | 1,392 | |||
Taxes on income | 634 | 522 | 528 | |||
Net Income | 1,071 | 928 | 864 | |||
Preferred stock dividends | 61 | 45 | ' | |||
Net Income Available to Common Stockholders | $1,010 | $883 | $864 | |||
Weighted-Average Common Shares Outstanding - Diluted | 1,293 | [3] | 1,275 | [3] | 1,229 | [3] |
Earnings Per Common Share - Basic | $0.78 | $0.69 | $0.70 | |||
Earnings Per Common Share - Diluted | $0.78 | $0.69 | $0.70 | |||
Dividends Declared Per Common Share | $0.24 | $0.24 | $0.24 | |||
[1] | Unallocated amount includes a non-recurring gain of $70Â million relating to a confidential resolution of a vendor dispute in 2012. | |||||
[2] | Net impairment losses on securities include total other-than-temporary impairment losses of $2Â million, $15Â million, and $18Â million recognized in other comprehensive (loss) income, net of $(8)Â million, $(17)Â million, and $(13)Â million reclassified from other comprehensive (loss) income in 2013, 2012, and 2011, respectively. | |||||
[3] | Antidilutive stock options and restricted stock awards excluded from the calculation of diluted EPS totaled 34Â million, 74Â million, and 63Â million shares in 2013, 2012, and 2011, respectively. |
Consolidated_Statements_of_Inc1
Consolidated Statements of Income (Parenthetical) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Consolidated Statements of Income [Abstract] | ' | ' | ' |
Total other-than-temporary impairment losses | $2 | $15 | $18 |
Impairment losses reclassified from other comprehensive (loss) income | ($8) | ($17) | ($13) |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Income (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Consolidated Statements of Comprehensive Income [Abstract] | ' | ' | ' |
Net income | $1,071 | $928 | $864 |
Change in net unrealized gain on securities available for sale: | ' | ' | ' |
Net unrealized (loss) gain | -468 | 470 | -43 |
Reclassification of impairment charges included in net impairment losses on securities | 10 | 32 | 31 |
Other reclassifications included in other revenue | -7 | -38 | 1 |
Other | 1 | 1 | -1 |
Other comprehensive (loss) income, before tax | -464 | 465 | -12 |
Income tax effect | 175 | -175 | 4 |
Other comprehensive (loss) income, net of tax | -289 | 290 | -8 |
Comprehensive Income | $782 | $1,218 | $856 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Assets | ' | ' |
Cash and cash equivalents | $7,728 | $12,663 |
Cash and investments segregated and on deposit for regulatory purposes (including resale agreements of $14,016 and $19,325 at December 31, 2013 and 2012, respectively) | 23,553 | 28,469 |
Receivables from brokers, dealers, and clearing organizations | 509 | 333 |
Receivables from brokerage clients — net | 13,951 | 13,458 |
Other securities owned — at fair value | 517 | 636 |
Securities available for sale | 51,618 | 46,123 |
Securities held to maturity (fair value — $29,490 and $18,732 at December 31, 2013 and 2012, respectively) | 30,318 | 18,194 |
Loans to banking clients — net | 12,419 | 10,726 |
Equipment, office facilities, and property — net | 790 | 675 |
Goodwill | 1,227 | 1,228 |
Intangible assets — net | 266 | 319 |
Other assets | 746 | 813 |
Total assets | 143,642 | 133,637 |
Liabilities and Stockholders' Equity | ' | ' |
Deposits from banking clients | 92,972 | 79,377 |
Payables to brokers, dealers, and clearing organizations | 1,467 | 1,068 |
Payables to brokerage clients | 35,333 | 40,330 |
Accrued expenses and other liabilities | 1,586 | 1,641 |
Long-term debt | 1,903 | 1,632 |
Total liabilities | 133,261 | 124,048 |
Stockholders' equity: | ' | ' |
Preferred stock — $.01 par value per share; aggregated liquidation preference of $885 | 869 | 865 |
Common stock — 3 billion shares authorized; $.01 par value per share; 1,487,543,446 shares issued | 15 | 15 |
Additional paid-in capital | 3,951 | 3,881 |
Retained earnings | 9,253 | 8,554 |
Treasury stock, at cost — 190,657,263 shares and 210,014,305 shares at December 31, 2013 and 2012, respectively | -3,716 | -4,024 |
Accumulated other comprehensive income | 9 | 298 |
Total stockholders' equity | 10,381 | 9,589 |
Total liabilities and stockholders' equity | $143,642 | $133,637 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, except Share data, unless otherwise specified | ||
Consolidated Balance Sheets [Abstract] | ' | ' |
Cash and investments segregated and on deposit for regulatory purposes, resale agreements | $14,016 | $19,325 |
Securities held to maturity, fair value | 29,490 | 18,732 |
Preferred stock, par value | $0.01 | $0.01 |
Preferred stock, aggregate liquidation preference | $885 | $885 |
Common stock, shares authorized | 3,000,000,000 | 3,000,000,000 |
Common stock, par value | $0.01 | $0.01 |
Common stock, shares issued | 1,487,543,446 | 1,487,543,446 |
Treasury stock, shares | 190,657,263 | 210,014,305 |
Consolidated_Statement_of_Cash
Consolidated Statement of Cash Flows (USD $) | 12 Months Ended | |||||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |||
Cash Flows from Operating Activities | ' | ' | ' | |||
Net income | $1,071 | $928 | $864 | |||
Adjustments to reconcile net income to net cash provided by operating activities: | ' | ' | ' | |||
Provision for loan losses | -1 | 16 | 18 | |||
Net impairment losses on securities | 10 | [1] | 32 | [1] | 31 | [1] |
Stock-based compensation | 116 | 105 | 99 | |||
Depreciation and amortization | 202 | 196 | 155 | |||
(Benefit) provision for deferred income taxes | -21 | 5 | 52 | |||
Premium amortization, net, on securities available for sale and securities held to maturity | 162 | 222 | 136 | |||
Other | 15 | 26 | 9 | |||
Originations of loans held for sale | ' | -441 | -1,574 | |||
Proceeds from sales of loans held for sale | ' | 513 | 1,703 | |||
Net change in: | ' | ' | ' | |||
Cash and investments segregated and on deposit for regulatory purposes | 4,916 | -2,549 | -2,211 | |||
Receivables from brokers, dealers, and clearing organizations | -175 | -104 | 220 | |||
Receivables from brokerage clients | -496 | -2,391 | 341 | |||
Other securities owned | 119 | -43 | -231 | |||
Other assets | 17 | 10 | -15 | |||
Payables to brokers, dealers, and clearing organizations | 318 | 28 | -357 | |||
Payables to brokerage clients | -4,997 | 4,950 | 3,407 | |||
Accrued expenses and other liabilities | 400 | -237 | -183 | |||
Net cash provided by operating activities | 1,656 | 1,266 | 2,464 | |||
Cash Flows from Investing Activities | ' | ' | ' | |||
Purchases of securities available for sale | -22,942 | -29,035 | -18,434 | |||
Proceeds from sales of securities available for sale | 6,167 | 3,336 | 500 | |||
Principal payments on securities available for sale | 10,772 | 13,867 | 7,978 | |||
Purchases of securities held to maturity | -16,061 | -8,678 | -2,253 | |||
Principal payments on securities held to maturity | 3,895 | 5,453 | 4,786 | |||
Net increase in loans to banking clients | -1,634 | -978 | -1,125 | |||
Purchase of equipment, office facilities, and property | -249 | -148 | -180 | |||
Cash (paid) acquired in business acquisitions - net | ' | -80 | 54 | |||
Other investing activities | 2 | 3 | 7 | |||
Net cash used for investing activities | -20,050 | -16,260 | -8,667 | |||
Cash Flows from Financing Activities | ' | ' | ' | |||
Net change in deposits from banking clients | 13,595 | 18,523 | 10,264 | |||
Issuance of commercial paper | ' | 300 | ' | |||
Repayment of commercial paper | -300 | ' | ' | |||
Issuance of long-term debt | 275 | 350 | ' | |||
Repayment of long-term debt | -6 | -732 | -116 | |||
Premium paid on debt exchange | ' | -19 | ' | |||
Net proceeds from preferred stock offerings | ' | 863 | ' | |||
Dividends paid | -368 | -337 | -295 | |||
Proceeds from stock options exercised and other | 258 | 35 | 96 | |||
Other financing activities | 5 | -5 | 2 | |||
Net cash provided by financing activities | 13,459 | 18,978 | 9,951 | |||
(Decrease) Increase in Cash and Cash Equivalents | -4,935 | 3,984 | 3,748 | |||
Cash and Cash Equivalents at Beginning of Year | 12,663 | 8,679 | 4,931 | |||
Cash and Cash Equivalents at End of Year | 7,728 | 12,663 | 8,679 | |||
Cash paid during the year for: | ' | ' | ' | |||
Interest | 99 | 143 | 168 | |||
Income taxes | 624 | 508 | 517 | |||
Non-cash investing activity: | ' | ' | ' | |||
Common stock issued and equity awards assumed for business acquisitions (See note "24 - Business Acquisitions") | ' | ' | 714 | |||
Securities purchased during the period but settled after period end | 81 | ' | 58 | |||
Non-cash financing activity: | ' | ' | ' | |||
Exchange of Senior Notes (See note “13 – Borrowingsâ€) | ' | $256 | ' | |||
[1] | Net impairment losses on securities include total other-than-temporary impairment losses of $2Â million, $15Â million, and $18Â million recognized in other comprehensive (loss) income, net of $(8)Â million, $(17)Â million, and $(13)Â million reclassified from other comprehensive (loss) income in 2013, 2012, and 2011, respectively. |
Consolidated_Statements_of_Sto
Consolidated Statements of Stockholders' Equity (USD $) | 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] | Total |
In Millions | |||||||
Beginning Balance at Dec. 31, 2010 | ' | $14 | $3,034 | $7,409 | ($4,247) | $16 | $6,226 |
Beginning Balance (in shares) at Dec. 31, 2010 | ' | 1,429 | ' | ' | ' | ' | ' |
Net income | ' | ' | ' | 864 | ' | ' | 864 |
Other comprehensive income (loss), net of tax | ' | ' | ' | ' | ' | -8 | -8 |
Issuance of common stock for business acquisition (in shares) | ' | 59 | ' | ' | ' | ' | ' |
Issuance of common stock for business acquisition | ' | 1 | 713 | ' | ' | ' | 714 |
Dividends declared on common stock | ' | ' | ' | -295 | ' | ' | -295 |
Stock option exercises and other | ' | ' | -24 | ' | 122 | ' | 98 |
Stock-based compensation and related tax effects | ' | ' | 99 | ' | ' | ' | 99 |
Other | ' | ' | 4 | ' | 12 | ' | 16 |
Ending Balance at Dec. 31, 2011 | ' | 15 | 3,826 | 7,978 | -4,113 | 8 | 7,714 |
Ending Balance (in shares) at Dec. 31, 2011 | ' | 1,488 | ' | ' | ' | ' | ' |
Net income | ' | ' | ' | 928 | ' | ' | 928 |
Other comprehensive income (loss), net of tax | ' | ' | ' | ' | ' | 290 | 290 |
Issuance of preferred stock | 863 | ' | ' | ' | ' | ' | 863 |
Dividends declared on preferred stock | ' | ' | ' | -43 | ' | ' | -43 |
Dividends declared on common stock | ' | ' | ' | -308 | ' | ' | -308 |
Stock option exercises and other | ' | ' | -40 | ' | 76 | ' | 36 |
Stock-based compensation and related tax effects | ' | ' | 98 | ' | ' | ' | 98 |
Other | 2 | ' | -3 | -1 | 13 | ' | 11 |
Ending Balance at Dec. 31, 2012 | 865 | 15 | 3,881 | 8,554 | -4,024 | 298 | 9,589 |
Ending Balance (in shares) at Dec. 31, 2012 | ' | 1,488 | ' | ' | ' | ' | ' |
Net income | ' | ' | ' | 1,071 | ' | ' | 1,071 |
Other comprehensive income (loss), net of tax | ' | ' | ' | ' | ' | -289 | -289 |
Dividends declared on preferred stock | ' | ' | ' | -57 | ' | ' | -57 |
Dividends declared on common stock | ' | ' | ' | -311 | ' | ' | -311 |
Stock option exercises and other | ' | ' | -54 | ' | 314 | ' | 260 |
Stock-based compensation and related tax effects | ' | ' | 119 | ' | ' | ' | 119 |
Other | 4 | ' | 5 | -4 | -6 | ' | -1 |
Ending Balance at Dec. 31, 2013 | $869 | $15 | $3,951 | $9,253 | ($3,716) | $9 | $10,381 |
Ending Balance (in shares) at Dec. 31, 2013 | ' | 1,488 | ' | ' | ' | ' | ' |
Introduction_and_Basis_of_Pres
Introduction and Basis of Presentation | 12 Months Ended |
Dec. 31, 2013 | |
Introduction and Basis of Presentation [Abstract] | ' |
Introduction and Basis of Presentation | ' |
1.Introduction and Basis of Presentation | |
The Charles Schwab Corporation (CSC) is a savings and loan holding company engaged, through its subsidiaries, in securities brokerage, banking, money management, and financial advisory services. Charles Schwab & Co., Inc. (Schwab) is a securities broker-dealer with over 300 domestic branch offices in 45 states, as well as a branch in each of the Commonwealth of Puerto Rico and London, England. In addition, Schwab serves clients in Hong Kong through one of CSC’s subsidiaries. Other subsidiaries include Charles Schwab Bank (Schwab Bank), a federal savings bank, and Charles Schwab Investment Management, Inc. (CSIM), the investment advisor for Schwab’s proprietary mutual funds, which are referred to as the Schwab Funds®, and for Schwab’s exchange-traded funds, which are referred to as the Schwab ETFsTM. | |
The accompanying consolidated financial statements include CSC and its majority-owned subsidiaries (collectively referred to as the Company). Intercompany balances and transactions have been eliminated. These consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States (U.S.), which require management to make certain estimates and assumptions that affect the reported amounts in the accompanying financial statements. Certain estimates relate to other-than-temporary impairment of securities available for sale and securities held to maturity, valuation of goodwill, allowance for loan losses, and legal and regulatory reserves. Actual results may differ from those estimates. | |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 12 Months Ended | |||
Dec. 31, 2013 | ||||
Summary of Significant Accounting Policies [Abstract] | ' | |||
Summary of Significant Accounting Policies | ' | |||
2.Summary of Significant Accounting Policies | ||||
Asset management and administration fees | ||||
Asset management and administration fees include mutual fund service fees and fees for other asset-based financial services provided to individual and institutional clients, and are recognized as revenue over the period that the related service is provided, based upon average asset balances. The Company’s policy is to recognize revenue subject to refunds because management can estimate refunds based on Company specific experience. Actual refunds were not material as of December 31, 2013. The Company earns mutual fund service fees for shareholder services, administration, and investment management provided to its proprietary funds, and recordkeeping and shareholder services provided to third-party funds. These fees are based upon the daily balances of client assets invested in these funds. The Company also earns asset management fees for advice solutions, which include advisory and managed account services that are based on the daily balances of client assets subject to the specific fee for service. The fair values of client assets included in proprietary and third-party mutual funds are based on quoted market prices and other observable market data. Other asset management and administration fees include various asset based fees, such as third-party mutual fund service fees, trust fees, 401(k) record keeping fees, and mutual fund clearing and other service fees. | ||||
In 2013, 2012, and 2011, the Company waived a portion of its asset management fees earned from certain Schwab-sponsored money market mutual funds in order to provide a positive return to clients. Under agreements with these funds, the Company may recover such fee waivers depending on the future performance of the funds and approval by the boards of the respective funds until the third anniversary of the end of the fiscal year in which such fee waiver occurs, subject to certain limitations. Recoveries of previously-waived asset management fees are recognized as revenue when substantially all uncertainties about timing and amount of realization are resolved. | ||||
Interest revenue | ||||
Interest revenue represents interest earned on cash and cash equivalents, cash and investments segregated, receivables from brokers, dealers, and clearing organizations, receivables from brokerage clients, other securities owned, securities available for sale, securities held to maturity, and loans to banking clients. Interest revenue is recognized in the period earned based upon average or daily asset balances and respective interest rates. | ||||
Trading revenue | ||||
Trading revenue includes commission and principal transaction revenues. Clients’ securities transactions are recorded on the date that they settle, while the related commission revenues and expenses are recorded on the date that the trade occurs. Principal transaction revenue is primarily comprised of revenue from trading activity in client fixed income securities, which is recorded on a trade date basis. To accommodate clients’ fixed income trading activity, the Company maintains positions in fixed income securities, including state and municipal debt obligations, U.S. Government, corporate debt and other securities. The difference between the price at which the Company buys and sells securities to and from its clients and other broker-dealers is recognized as principal transaction revenue. Principal transaction revenue also includes adjustments to the fair value of these securities positions. | ||||
Cash and cash equivalents | ||||
The Company considers all highly liquid investments with original maturities of three months or less that are not segregated and on deposit for regulatory purposes to be cash equivalents. Cash and cash equivalents include money market funds, deposits with banks, certificates of deposit, commercial paper, and treasury securities. Cash and cash equivalents also include balances that Schwab Bank maintains at the Federal Reserve Bank. | ||||
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 investing transactions that are recorded at their contractual amounts plus accrued interest. The Company obtains control of collateral with a market value equal to or in excess of the principal amount loaned and accrued interest under resale agreements. Collateral is valued daily by the Company, with additional collateral obtained to ensure full collateralization. Cash and investments segregated also include certificates of deposit and U.S. Government securities. Certificates of deposit and U.S. Government securities are recorded at fair value. Pursuant to applicable regulations, client cash balances that are not used for margin lending are generally segregated into investment accounts that are maintained for the exclusive benefit of clients. | ||||
Receivables from brokerage clients | ||||
Receivables from brokerage clients include margin loans to clients and are recorded net of an allowance for doubtful accounts. Receivables from brokerage clients that remain unsecured or partially secured for more than 30 days are fully reserved. | ||||
Other securities owned | ||||
Other securities owned are recorded at fair value based on quoted market prices or other observable market data. Unrealized gains and losses are included in trading revenue. | ||||
Securities available for sale and securities held to maturity | ||||
Securities available for sale are recorded at fair value and unrealized gains and losses are reported, net of taxes, in accumulated other comprehensive income (loss) included in stockholders’ equity. Securities held to maturity 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 securities available for sale are determined on a specific identification basis and are included in other revenue – net. | ||||
Management evaluates whether securities available for sale and securities held to maturity are other-than-temporarily impaired (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 the amortized cost and the then-current 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 estimated credit loss, and is measured by the difference between the present value of expected cash flows and the amortized cost of the security. Management utilizes cash flow models to estimate the expected future cash flow from the securities to estimate the credit loss. Expected cash flows are discounted using the security’s effective interest rate. | ||||
The evaluation of whether the Company expects to recover the amortized cost of a security is inherently judgmental. The evaluation includes the assessment of several bond performance indicators including: the portion of the underlying loans that are delinquent (30 days, 60 days, 90+ days), in bankruptcy, in foreclosure or converted to real estate owned; the actual amount of loss incurred on the underlying loans in which the property has been foreclosed and sold; the amount of credit support provided by the structure of the security available to absorb credit losses on the underlying loans; the current price and magnitude of the unrealized loss; and whether the Company has received all scheduled principal and interest payments. Management uses cash flow models to further assess the likelihood of other-than-temporary impairment for the Company’s non-agency residential mortgage-backed securities. To develop the cash flow models, the Company uses forecasted loss severity, prepayment speeds (i.e. the rate at which the principal on underlying loans are paid down), and default rates over the securities’ expected remaining maturities. | ||||
Securities borrowed and securities loaned | ||||
Securities borrowed require the Company to deliver cash to the lender in exchange for securities and are included in receivables from brokers, dealers, and clearing organizations. For securities loaned, the Company receives collateral in the form of cash in an amount equal to or greater than the market value of securities loaned. Securities loaned are included in payables to brokers, dealers, and clearing organizations. The Company monitors the market value of securities borrowed and loaned, with additional collateral obtained or refunded to ensure full collateralization. Fees received or paid are recorded in interest revenue or interest expense. | ||||
Loans to banking clients and related allowance for loan losses | ||||
Loans to banking clients are recorded at their contractual principal amounts and include unamortized direct origination costs or net purchase premiums. Additionally, loans are recorded net of an allowance for loan losses. The Company’s loan portfolio includes four loan segments: residential real estate mortgages, home equity lines of credit (HELOC), personal loans secured by securities and other loans. Residential real estate mortgages include two loan classes: first mortgages and purchased first mortgages. Loan segments are defined as the level to which the Company disaggregates its loan portfolio when developing and documenting a methodology for determining the allowance for loan losses. A loan class is defined as a group of loans within a loan segment that has homogeneous risk characteristics. | ||||
The Company records an allowance for loan losses through a charge to earnings based on management’s estimate of probable losses in the existing portfolio. Management reviews 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, loan-to-value (LTV) ratios, past loss experience, estimates of future loss severities, borrower credit risk measured by Fair Isaac Corporation (FICO) scores, and the adequacy of collateral. The methodology also evaluates concentrations in the loan segments, including loan products, 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 of each loan, the term and structure of each loan, current key interest rates including U.S. Treasury and London Interbank Offered Rate (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 the Company’s historical loss experience adjusted for current trends and market information. Further, the delinquency roll rates within the loan-level simulation discussed above are calibrated to match a moving average of the delinquency roll rates actually experienced in the respective first lien residential real estate mortgage loan (First Mortgage) and home equity line of credit (HELOC) portfolios. Loss severity estimates are based on the Company’s 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. As a result, the current state of house prices, including the decrease in general house prices experienced over the last several years, as well as the current state of delinquencies unique to the Company’s First Mortgage and HELOC portfolios, are considered in the allowance for loan loss methodology. | ||||
This methodology results in loss factors that are applied to the outstanding balances to determine the allowance for loan loss for each loan segment. | ||||
The Company considers loan modifications in which it makes an economic concession to a borrower experiencing financial difficulty to be a troubled debt restructuring. | ||||
Nonaccrual loans | ||||
Residential real estate mortgages, HELOC, personal, 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. For the portion of the HELOC portfolio for which the Company is able to track the delinquency status on the associated first lien loan, the Company places a HELOC on non-accrual status if the associated first mortgage 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 thereafter, 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. | ||||
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. The Company’s charge-off policy for residential real estate first mortgages and HELOC loans is to assess the value of the property when the loan has been delinquent for 180 days or has been discharged in bankruptcy proceedings, regardless of whether or not the property is in foreclosure, and charge-off the amount of the loan balance in excess of the estimated current value of the underlying property less estimated costs to sell. | ||||
Equipment, office facilities, and property | ||||
Equipment, office facilities, and property are recorded at cost net of accumulated depreciation and amortization, except for land, which is recorded at cost. Equipment and office facilities are depreciated on a straight-line basis over an estimated useful life of five to ten years. Buildings are depreciated on a straight-line basis over 20 to 40 years. Leasehold improvements are amortized on a straight-line basis over the shorter of the estimated useful life of the asset or the term of the lease. Software and certain costs incurred for purchasing or developing software for internal use are amortized on a straight-line basis over an estimated useful life of three or five 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. The Company’s annual impairment testing date is April 1st. The Company 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 may consider macroeconomic and other industry-specific factors, such as trends in short-term and long-term interest rates and the ability to access capital, or 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, and a market capitalization analysis. | ||||
Intangible assets | ||||
Intangible assets are amortized over their useful lives in a manner that best reflects their economic benefit. Intangible assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable. The Company does not have any indefinite-lived intangible assets. | ||||
Guarantees and indemnifications | ||||
The Company 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 the obligations relating to standby letter of credit agreements (LOCs) are estimated based on fees charged to enter into similar agreements, considering the creditworthiness of the counterparties. The fair values of the obligations relating to other guarantees are estimated based on transactions for similar guarantees or expected present value measures. | ||||
Income taxes | ||||
The Company 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. The Company’s unrecognized tax benefits, which are included in accrued expenses and other liabilities, represent the difference between positions taken on tax return filings and estimated potential tax settlement outcomes. Interest and penalties relating to unrecognized tax benefits are recorded in income tax expense. | ||||
Stock-based compensation | ||||
Stock-based compensation includes employee and board of director stock options, restricted stock units, and restricted stock awards. The Company measures compensation expense for these share-based payment arrangements based on their estimated fair values as of the awards’ grant date. The fair value of the share-based award is recognized over the vesting period as stock-based compensation. Stock-based compensation expense is based on awards expected to vest and therefore is reduced for estimated forfeitures. Forfeitures are estimated at the time of grant based on the Company’s historical forfeiture experience and revised in subsequent periods if actual forfeitures differ from those estimates. The excess tax benefits from the exercise of stock options and the vesting of restricted stock awards are recorded in additional paid-in capital. | ||||
Fair values of assets and liabilities | ||||
Fair value is defined as the price that would be received to sell an asset or the price paid to transfer a liability in an orderly transaction between market participants at the measurement date. Fair value measurement accounting guidance describes the fair value hierarchy for disclosing assets and liabilities measured at fair value based on the inputs used to value them. The fair value hierarchy maximizes the use of observable inputs and minimizes the use of unobservable inputs. Observable inputs are based on market pricing data obtained from sources independent of the Company. A quoted price in an active market provides the most reliable evidence of fair value and is generally used to measure fair value whenever available. Unobservable inputs reflect management’s judgment about the assumptions market participants would use in pricing the asset or liability. Where inputs used to measure fair value of an asset or liability are from different levels of the hierarchy, the asset or liability is categorized based on the lowest level input that is significant to the fair value measurement in its entirety. Assessing the significance of a particular input requires judgment. The fair value hierarchy includes three levels based on the objectivity of the inputs as follows: | ||||
· | Level 1 inputs are quoted prices in active markets as of the measurement date for identical assets or liabilities that the Company has the ability to access. | |||
· | Level 2 inputs are inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. Level 2 inputs include quoted prices for similar assets and liabilities in active markets, and inputs other than quoted prices that are observable for the asset or liability, such as interest rates, benchmark yields, issuer spreads, new issue data, and collateral performance. | |||
· | Level 3 inputs are unobservable inputs for the asset or liability, and include situations where there is little, if any, market activity for the asset or liability. | |||
Assets and liabilities recorded at fair value | ||||
The Company uses the market and income approaches 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. The Company generally obtains prices from at least three independent pricing sources for assets recorded at fair value and may obtain up to five prices on assets with higher risk of limited observable information, such as non-agency residential mortgage-backed securities. The Company’s 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. The Company compares the prices obtained from its 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. The Company does not adjust the prices received from independent third-party pricing services unless such prices are inconsistent with the definition of fair value and result in a material difference in the recorded amounts. | ||||
Financial instruments not recorded at fair value | ||||
Descriptions of the valuation methodologies and assumptions used to estimate the fair value of financial instruments not recorded at fair value are described below. The Company’s financial instruments not recorded at fair value but for which fair value can be approximated and disclosed include: | ||||
· | Cash and cash equivalents are short-term in nature and accordingly are recorded at amounts that approximate fair value. | |||
· | Cash and investments segregated and on deposit for regulatory purposes include cash and securities purchased under resale agreements. Securities purchased under resale agreements are short-term in nature and are backed by collateral that both exceeds the carrying value of the resale agreement and is highly liquid in nature. Accordingly, the carrying value approximates fair value. | |||
· | Receivables from/payables to brokers, dealers, and clearing organizations are recorded at contractual amounts and historically have been settled at those values and are short-term in nature, and therefore approximate fair value. | |||
· | Receivables from/payables to brokerage clients — net are recorded at contractual amounts and historically have been settled at those values and are short-term in nature, and therefore approximate fair value. | |||
· | Securities held to maturity – The fair values of securities held to maturity are obtained using an independent third-party pricing service similar to investment assets recorded at fair value as discussed above. | |||
· | Loans to banking clients – The fair values of the Company’s loans to banking clients are estimated based on prices of mortgage-backed securities collateralized by similar types of loans. | |||
· | Financial instruments included in other assets primarily consist of cost method investments and Federal Home Loan Bank (FHLB) stock, whose carrying values approximate their fair values. FHLB stock is recorded at par, which approximates fair value. | |||
· | Deposits from banking clients have no stated maturity and are recorded at the amount payable on demand as of the balance sheet date. The Company considers the carrying value of these deposits to approximate their fair values. | |||
· | Financial instruments included in accrued expenses and other liabilities consist of commercial paper, drafts payable and certain amounts due under contractual obligations which are short-term in nature and accordingly are recorded at amounts that approximate fair value. | |||
· | Long-term debt – Except for the finance lease obligation, the fair values of long-term debt are estimated using indicative, non-binding quotes from independent brokers. The Company validates indicative prices for its debt through comparison to other independent non-binding quotes. The finance lease obligation is recorded at carrying value, which approximates fair value. | |||
· | Firm commitments to extend credit – The Company extends credit to banking clients through HELOC and personal loans secured by securities. The Company considers the fair value of these unused commitments to be not material because the interest rates earned on these balances are based on floating interest rates that reset monthly. The Company does not charge a fee to maintain a HELOC or personal loan. | |||
Receivables_from_Brokerage_Cli
Receivables from Brokerage Clients | 12 Months Ended |
Dec. 31, 2013 | |
Receivables from Brokerage Clients [Abstract] | ' |
Receivables from Brokerage Clients | ' |
3.Receivables from Brokerage Clients | |
Receivables from brokerage clients consist primarily of margin loans to brokerage clients of $12.8 billion and $11.6 billion at December 31, 2013 and 2012, respectively. Securities owned by brokerage clients are held as collateral for margin loans. Such collateral is not reflected in the consolidated financial statements. The average yield earned on margin loans was 3.68% and 4.08% in 2013 and 2012, respectively. | |
Other_Securities_Owned
Other Securities Owned | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Other Securities Owned [Abstract] | ' | ||||||||
Other Securities Owned | ' | ||||||||
4.Other Securities Owned | |||||||||
A summary of other securities owned is as follows: | |||||||||
December 31, | 2013 | 2012 | |||||||
Schwab Funds® money market funds | $ | 261 | $ | 329 | |||||
Equity and bond mutual funds | 208 | 217 | |||||||
State and municipal debt obligations | 32 | 48 | |||||||
Equity, U.S. Government and corporate debt, and other securities | 16 | 42 | |||||||
Total other securities owned | $ | 517 | $ | 636 | |||||
The Company’s positions in Schwab Funds® money market funds arise from certain overnight funding of clients’ redemption, check-writing, and debit card activities. Equity and bond mutual funds include mutual fund investments held at CSC, investments made by the Company relating to its deferred compensation plan, and inventory maintained to facilitate certain Schwab Funds and third-party mutual fund clients’ transactions. State and municipal debt obligations, equity, U.S. Government and corporate debt, and other securities include securities held to meet clients’ trading activities. | |||||||||
Securities_Available_for_Sale_
Securities Available for Sale and Securities Held to Maturity | 12 Months Ended | ||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||
Securities Available for Sale and Securities Held to Maturity [Abstract] | ' | ||||||||||||||||||
Securities Available for Sale and Securities Held to Maturity | ' | ||||||||||||||||||
5.Securities Available for Sale and Securities Held to Maturity | |||||||||||||||||||
The amortized cost, gross unrealized gains and losses, and fair value of securities available for sale and securities held to maturity are as follows: | |||||||||||||||||||
Gross | Gross | ||||||||||||||||||
Amortized | Unrealized | Unrealized | Fair | ||||||||||||||||
31-Dec-13 | Cost | Gains | Losses | Value | |||||||||||||||
Securities available for sale: | |||||||||||||||||||
U.S. agency mortgage-backed securities | $ | 18,554 | $ | 140 | $ | 49 | $ | 18,645 | |||||||||||
Asset-backed securities | 15,201 | 42 | 37 | 15,206 | |||||||||||||||
Corporate debt securities | 8,973 | 49 | 15 | 9,007 | |||||||||||||||
U.S. agency notes | 4,239 | 1 | 104 | 4,136 | |||||||||||||||
Certificates of deposit | 3,650 | 4 | 2 | 3,652 | |||||||||||||||
Non-agency residential mortgage-backed securities | 616 | 11 | 34 | 593 | |||||||||||||||
Non-agency commercial mortgage-backed securities | 271 | 8 | - | 279 | |||||||||||||||
Other securities | 100 | - | - | 100 | |||||||||||||||
Total securities available for sale | $ | 51,604 | $ | 255 | $ | 241 | $ | 51,618 | |||||||||||
Securities held to maturity: | |||||||||||||||||||
U.S. agency mortgage-backed securities | $ | 29,260 | $ | 161 | $ | 921 | $ | 28,500 | |||||||||||
Non-agency commercial mortgage-backed securities | 958 | - | 68 | 890 | |||||||||||||||
Other securities | 100 | - | - | 100 | |||||||||||||||
Total securities held to maturity | $ | 30,318 | $ | 161 | $ | 989 | $ | 29,490 | |||||||||||
Gross | Gross | ||||||||||||||||||
Amortized | Unrealized | Unrealized | Fair | ||||||||||||||||
31-Dec-12 | Cost | Gains | Losses | Value | |||||||||||||||
Securities available for sale: | |||||||||||||||||||
U.S. agency mortgage-backed securities | $ | 20,080 | $ | 396 | $ | - | $ | 20,476 | |||||||||||
Asset-backed securities | 8,104 | 62 | 2 | 8,164 | |||||||||||||||
Corporate debt securities | 6,197 | 61 | 2 | 6,256 | |||||||||||||||
Certificates of deposit | 6,150 | 12 | 1 | 6,161 | |||||||||||||||
U.S. agency notes | 3,465 | 2 | 3 | 3,464 | |||||||||||||||
Non-agency residential mortgage-backed securities | 796 | 2 | 65 | 733 | |||||||||||||||
Commercial paper | 574 | - | - | 574 | |||||||||||||||
Other securities | 278 | 17 | - | 295 | |||||||||||||||
Total securities available for sale | $ | 45,644 | $ | 552 | $ | 73 | $ | 46,123 | |||||||||||
Securities held to maturity: | |||||||||||||||||||
U.S. agency mortgage-backed securities | $ | 17,750 | $ | 558 | $ | 19 | $ | 18,289 | |||||||||||
Other securities | 444 | - | 1 | 443 | |||||||||||||||
Total securities held to maturity | $ | 18,194 | $ | 558 | $ | 20 | $ | 18,732 | |||||||||||
A summary of securities with unrealized losses, aggregated by category and period of continuous unrealized loss, is as follows: | |||||||||||||||||||
Less than | 12 months | ||||||||||||||||||
12 months | or longer | Total | |||||||||||||||||
Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | ||||||||||||||
31-Dec-13 | Value | Losses | Value | Losses | Value | Losses | |||||||||||||
Securities available for sale: | |||||||||||||||||||
U.S agency mortgage-backed securities | $ | 5,044 | $ | 47 | $ | 93 | $ | 2 | $ | 5,137 | $ | 49 | |||||||
Asset-backed securities | 6,391 | 33 | 591 | 4 | 6,982 | 37 | |||||||||||||
Corporate debt securities | 1,802 | 14 | 499 | 1 | 2,301 | 15 | |||||||||||||
U.S. agency notes | 3,636 | 104 | - | - | 3,636 | 104 | |||||||||||||
Certificates of deposit | - | - | 299 | 2 | 299 | 2 | |||||||||||||
Non-agency residential mortgage-backed | |||||||||||||||||||
securities | 89 | 2 | 374 | 32 | 463 | 34 | |||||||||||||
Total | $ | 16,962 | $ | 200 | $ | 1,856 | $ | 41 | $ | 18,818 | $ | 241 | |||||||
Securities held to maturity: | |||||||||||||||||||
U.S. agency mortgage-backed securities | $ | 19,175 | $ | 698 | $ | 2,345 | $ | 223 | $ | 21,520 | $ | 921 | |||||||
Non-agency commercial mortgage-backed | |||||||||||||||||||
securities | 630 | 43 | 260 | 25 | 890 | 68 | |||||||||||||
Total | $ | 19,805 | $ | 741 | $ | 2,605 | $ | 248 | $ | 22,410 | $ | 989 | |||||||
Total securities with unrealized losses (1) | $ | 36,767 | $ | 941 | $ | 4,461 | $ | 289 | $ | 41,228 | $ | 1,230 | |||||||
-1 | The number of investment positions with unrealized losses totaled 273 for securities available for sale and 193 for securities held to maturity. | ||||||||||||||||||
Less than | 12 months | ||||||||||||||||||
12 months | or longer | Total | |||||||||||||||||
Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | ||||||||||||||
31-Dec-12 | Value | Losses | Value | Losses | Value | Losses | |||||||||||||
Securities available for sale: | |||||||||||||||||||
Asset-backed securities | $ | - | $ | - | $ | 801 | $ | 2 | $ | 801 | $ | 2 | |||||||
Corporate debt securities | 878 | 2 | - | - | 878 | 2 | |||||||||||||
Certificates of deposit | 599 | 1 | - | - | 599 | 1 | |||||||||||||
U.S. agency notes | 2,102 | 3 | - | - | 2,102 | 3 | |||||||||||||
Non-agency residential mortgage-backed | |||||||||||||||||||
securities | 46 | 1 | 549 | 64 | 595 | 65 | |||||||||||||
Total | $ | 3,625 | $ | 7 | $ | 1,350 | $ | 66 | $ | 4,975 | $ | 73 | |||||||
Securities held to maturity: | |||||||||||||||||||
U.S. agency mortgage-backed securities | $ | 2,680 | $ | 19 | $ | - | $ | - | $ | 2,680 | $ | 19 | |||||||
Other securities | 240 | 1 | - | - | 240 | 1 | |||||||||||||
Total | $ | 2,920 | $ | 20 | $ | - | $ | - | $ | 2,920 | $ | 20 | |||||||
Total securities with unrealized losses (1) | $ | 6,545 | $ | 27 | $ | 1,350 | $ | 66 | $ | 7,895 | $ | 93 | |||||||
-1 | The number of investment positions with unrealized losses totaled 139 for securities available for sale and 24 for securities held to maturity. | ||||||||||||||||||
Management evaluates whether securities available for sale and securities held to maturity are other-than-temporarily impaired (OTTI) on a quarterly basis as described in note “2 – Summary of Significant Accounting Policies.” | |||||||||||||||||||
Non-agency residential mortgage-backed securities include securities collateralized by loans that are considered to be | |||||||||||||||||||
“Prime” (defined as loans to borrowers with a Fair Isaac Corporation (FICO) credit score of 620 or higher at origination), and “Alt-A” (defined as Prime loans with reduced documentation at origination). Management determined that it does not expect to recover all of the amortized cost of certain of its Alt-A and Prime residential mortgage-backed securities and therefore determined that these securities were OTTI. The Company does not intend to sell these securities and it is not “more likely than not” that the Company will be required to sell these securities before anticipated recovery of the unrealized losses on these securities. The Company recognized an impairment charge equal to the securities’ expected credit losses of $10 million in 2013. The expected credit losses were measured as the difference between the present value of expected cash flows and the amortized cost of the securities. Further deterioration in the performance of the underlying loans in the Company’s non-agency residential mortgage-backed securities portfolio could result in the recognition of additional impairment losses. | |||||||||||||||||||
The following table is a rollforward of the amount of credit losses recognized in earnings for OTTI securities held by the Company during the period for which a portion of the impairment was reclassified from or recognized in other comprehensive (loss) income: | |||||||||||||||||||
Year Ended December 31, | 2013 | 2012 | 2011 | ||||||||||||||||
Balance at beginning of year | $ | 159 | $ | 127 | $ | 96 | |||||||||||||
Credit losses recognized into current year earnings on debt securities for | |||||||||||||||||||
which an other-than-temporary impairment was not previously recognized | 1 | 6 | 6 | ||||||||||||||||
Credit losses recognized into current year earnings on debt securities for | |||||||||||||||||||
which an other-than-temporary impairment was previously recognized | 9 | 26 | 25 | ||||||||||||||||
Balance at end of year | $ | 169 | $ | 159 | $ | 127 | |||||||||||||
The maturities of securities available for sale and securities held to maturity at December 31, 2013, are as follows: | |||||||||||||||||||
After 1 year | After 5 years | ||||||||||||||||||
Within | through | through | After | ||||||||||||||||
1 year | 5 years | 10 years | 10 years | Total | |||||||||||||||
Securities available for sale: | |||||||||||||||||||
U.S. agency mortgage-backed securities (1) | $ | - | $ | 508 | $ | 4,458 | $ | 13,679 | $ | 18,645 | |||||||||
Asset-backed securities | - | 1,219 | 3,284 | 10,703 | 15,206 | ||||||||||||||
Corporate debt securities | 1,348 | 7,554 | 105 | - | 9,007 | ||||||||||||||
U.S. agency notes | - | 3,896 | 240 | - | 4,136 | ||||||||||||||
Certificates of deposit | 1,826 | 1,826 | - | - | 3,652 | ||||||||||||||
Non-agency residential mortgage-backed | |||||||||||||||||||
securities (1) | - | 4 | - | 589 | 593 | ||||||||||||||
Non-agency commercial mortgage-backed | |||||||||||||||||||
securities (1) | - | - | - | 279 | 279 | ||||||||||||||
Other securities | 100 | - | - | - | 100 | ||||||||||||||
Total fair value | $ | 3,274 | $ | 15,007 | $ | 8,087 | $ | 25,250 | $ | 51,618 | |||||||||
Total amortized cost | $ | 3,270 | $ | 15,062 | $ | 8,041 | $ | 25,231 | $ | 51,604 | |||||||||
Securities held to maturity: | |||||||||||||||||||
U.S. agency mortgage-backed securities (1) | $ | - | $ | 555 | $ | 11,985 | $ | 15,960 | $ | 28,500 | |||||||||
Non-agency commercial mortgage-backed | |||||||||||||||||||
securities (1) | - | - | 337 | 553 | 890 | ||||||||||||||
Other securities | 100 | - | - | - | 100 | ||||||||||||||
Total fair value | $ | 100 | $ | 555 | $ | 12,322 | $ | 16,513 | $ | 29,490 | |||||||||
Total amortized cost | $ | 100 | $ | 550 | $ | 12,894 | $ | 16,774 | $ | 30,318 | |||||||||
-1 | Mortgage-backed securities have been allocated to maturity groupings based on final contractual maturities. Actual maturities will differ from final contractual maturities because borrowers on a certain portion of loans underlying these securities have the right to prepay their obligations. | ||||||||||||||||||
Proceeds and gross realized gains from sales of securities available for sale are as follows: | |||||||||||||||||||
Year Ended December 31, | 2013 | 2012 | 2011 | ||||||||||||||||
Proceeds | $ | 6,167 | $ | 3,336 | $ | 500 | |||||||||||||
Gross realized gains | $ | 7 | $ | 35 | $ | 1 | |||||||||||||
There were no realized losses from the sales of securities available for sale in 2013, 2012, or 2011. | |||||||||||||||||||
Loans_to_Banking_Clients_and_R
Loans to Banking Clients and Related Allowance for Loan Losses | 12 Months Ended | |||||||||||||||||||||||||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||||||||||||||||||||||||
Loans to Banking Clients and Related Allowance for Loan Losses [Abstract] | ' | |||||||||||||||||||||||||||||||||||||||||
Loans to Banking Clients and Related Allowance for Loan Losses | ' | |||||||||||||||||||||||||||||||||||||||||
6.Loans to Banking Clients and Related Allowance for Loan Losses | ||||||||||||||||||||||||||||||||||||||||||
The composition of loans to banking clients by loan segment is as follows: | ||||||||||||||||||||||||||||||||||||||||||
December 31, | 2013 | 2012 | ||||||||||||||||||||||||||||||||||||||||
Residential real estate mortgages | $ | 8,006 | $ | 6,507 | ||||||||||||||||||||||||||||||||||||||
Home equity lines of credit | 3,041 | 3,287 | ||||||||||||||||||||||||||||||||||||||||
Personal loans secured by securities | 1,384 | 963 | ||||||||||||||||||||||||||||||||||||||||
Other | 36 | 25 | ||||||||||||||||||||||||||||||||||||||||
Total loans to banking clients (1) | 12,467 | 10,782 | ||||||||||||||||||||||||||||||||||||||||
Allowance for loan losses | -48 | -56 | ||||||||||||||||||||||||||||||||||||||||
Total loans to banking clients – net | $ | 12,419 | $ | 10,726 | ||||||||||||||||||||||||||||||||||||||
-1 | Loans are evaluated for impairment by loan segment. | |||||||||||||||||||||||||||||||||||||||||
The Company has commitments to extend credit related to unused HELOCs, personal loans secured by securities, and other lines of credit, which totaled $5.7 billion and $5.4 billion at December 31, 2013 and 2012, respectively. | ||||||||||||||||||||||||||||||||||||||||||
Changes in the allowance for loan losses were as follows: | ||||||||||||||||||||||||||||||||||||||||||
Year Ended | 31-Dec-13 | 31-Dec-12 | 31-Dec-11 | |||||||||||||||||||||||||||||||||||||||
Residential | Home | Residential | Home | Residential | Home | |||||||||||||||||||||||||||||||||||||
real estate | equity lines | real estate | equity lines | real estate | equity lines | |||||||||||||||||||||||||||||||||||||
mortgages | of credit | Total | mortgages | of credit | Total | mortgages | of credit | Total | ||||||||||||||||||||||||||||||||||
Balance at beginning of year | $ | 36 | $ | 20 | $ | 56 | $ | 40 | $ | 14 | $ | 54 | $ | 38 | $ | 15 | $ | 53 | ||||||||||||||||||||||||
Charge-offs | -5 | -6 | -11 | -7 | -9 | -16 | -11 | -8 | -19 | |||||||||||||||||||||||||||||||||
Recoveries | 2 | 2 | 4 | 2 | - | 2 | 1 | 1 | 2 | |||||||||||||||||||||||||||||||||
Provision for loan losses | 1 | -2 | -1 | 1 | 15 | 16 | 12 | 6 | 18 | |||||||||||||||||||||||||||||||||
Balance at end of year | $ | 34 | $ | 14 | $ | 48 | $ | 36 | $ | 20 | $ | 56 | $ | 40 | $ | 14 | $ | 54 | ||||||||||||||||||||||||
Included in the loan portfolio are nonaccrual loans totaling $48 million at December 31, 2013 and 2012, respectively. There were no loans accruing interest that were contractually 90 days or more past due at December 31, 2013 or 2012. Nonperforming assets, which include nonaccrual loans and other real estate owned, totaled $53 million and $54 million at December 31, 2013 and 2012, respectively. Troubled debt restructurings were not material at December 31, 2013 or 2012, respectively. | ||||||||||||||||||||||||||||||||||||||||||
As of December 31, 2012, Schwab Bank no longer originates First Mortgage loans or HELOCs. In 2012, Schwab Bank launched a co-branded loan origination program for Schwab Bank clients (the Program) with Quicken Loans, Inc. (Quicken® Loans®). Pursuant to the Program, Quicken Loans originates and services First Mortgages and HELOCs for Schwab Bank clients. Under the Program, Schwab Bank purchases certain First Mortgages and HELOCs that are originated by Quicken Loans. Schwab Bank sets the underwriting guidelines and pricing for all loans it intends to purchase for its portfolio. Schwab Bank purchased First Mortgages of $3.5 billion and $3.0 billion during 2013 and 2012, respectively. Schwab Bank purchased HELOCs with commitments of $917 million and $411 million during 2013 and 2012, respectively. The First Mortgages purchased under the Program are included in the First mortgages loan class in the table below. | ||||||||||||||||||||||||||||||||||||||||||
The delinquency analysis by loan class is as follows: | ||||||||||||||||||||||||||||||||||||||||||
>90 days past | ||||||||||||||||||||||||||||||||||||||||||
30-59 days | 60-89 days | due and other | Total | Total | ||||||||||||||||||||||||||||||||||||||
31-Dec-13 | Current | past due | past due | nonaccrual loans | past due | loans | ||||||||||||||||||||||||||||||||||||
Residential real estate mortgages: | ||||||||||||||||||||||||||||||||||||||||||
First mortgages | $ | 7,808 | $ | 3 | $ | 4 | $ | 30 | $ | 37 | $ | 7,845 | ||||||||||||||||||||||||||||||
Purchased first mortgages | 154 | 1 | - | 6 | 7 | 161 | ||||||||||||||||||||||||||||||||||||
Home equity lines of credit | 3,025 | 2 | 2 | 12 | 16 | 3,041 | ||||||||||||||||||||||||||||||||||||
Personal loans secured by securities | 1,384 | - | - | - | - | 1,384 | ||||||||||||||||||||||||||||||||||||
Other | 36 | - | - | - | - | 36 | ||||||||||||||||||||||||||||||||||||
Total loans to banking clients | $ | 12,407 | $ | 6 | $ | 6 | $ | 48 | $ | 60 | $ | 12,467 | ||||||||||||||||||||||||||||||
31-Dec-12 | ||||||||||||||||||||||||||||||||||||||||||
Residential real estate mortgages: | ||||||||||||||||||||||||||||||||||||||||||
First mortgages | $ | 6,291 | $ | 22 | $ | 2 | $ | 33 | $ | 57 | $ | 6,348 | ||||||||||||||||||||||||||||||
Purchased first mortgages | 154 | 1 | - | 4 | 5 | 159 | ||||||||||||||||||||||||||||||||||||
Home equity lines of credit | 3,269 | 5 | 2 | 11 | 18 | 3,287 | ||||||||||||||||||||||||||||||||||||
Personal loans secured by securities | 963 | - | - | - | - | 963 | ||||||||||||||||||||||||||||||||||||
Other | 22 | 3 | - | - | 3 | 25 | ||||||||||||||||||||||||||||||||||||
Total loans to banking clients | $ | 10,699 | $ | 31 | $ | 4 | $ | 48 | $ | 83 | $ | 10,782 | ||||||||||||||||||||||||||||||
In addition to monitoring delinquency, the Company monitors the credit quality of residential real estate mortgages and HELOCs by stratifying the portfolios by the year of origination, borrower FICO scores at origination (Origination FICO), updated borrower FICO scores (Updated FICO), LTV ratios at origination (Origination LTV), and estimated current LTV ratios (Estimated Current LTV), as presented in the following tables. Borrowers’ FICO scores are provided by an independent third party credit reporting service and were last updated in December 2013. The Origination LTV and Estimated Current LTV ratios for a HELOC include any first lien mortgage outstanding on the same property at the time of the HELOC’s origination. The Estimated Current LTV for each loan is estimated by reference to a home price appreciation index. | ||||||||||||||||||||||||||||||||||||||||||
Residential real estate mortgages | ||||||||||||||||||||||||||||||||||||||||||
First | Purchased | Home equity | ||||||||||||||||||||||||||||||||||||||||
31-Dec-13 | mortgages | first mortgages | Total | lines of credit | ||||||||||||||||||||||||||||||||||||||
Year of origination | ||||||||||||||||||||||||||||||||||||||||||
Pre-2009 | $ | 674 | $ | 51 | $ | 725 | $ | 2,044 | ||||||||||||||||||||||||||||||||||
2009 | 185 | 4 | 189 | 260 | ||||||||||||||||||||||||||||||||||||||
2010 | 503 | 7 | 510 | 191 | ||||||||||||||||||||||||||||||||||||||
2011 | 733 | 38 | 771 | 155 | ||||||||||||||||||||||||||||||||||||||
2012 | 2,403 | 26 | 2,429 | 162 | ||||||||||||||||||||||||||||||||||||||
2013 | 3,347 | 35 | 3,382 | 229 | ||||||||||||||||||||||||||||||||||||||
Total | $ | 7,845 | $ | 161 | $ | 8,006 | $ | 3,041 | ||||||||||||||||||||||||||||||||||
Origination FICO | ||||||||||||||||||||||||||||||||||||||||||
<620 | $ | 10 | $ | 1 | $ | 11 | $ | - | ||||||||||||||||||||||||||||||||||
620 – 679 | 96 | 14 | 110 | 20 | ||||||||||||||||||||||||||||||||||||||
680 – 739 | 1,352 | 32 | 1,384 | 576 | ||||||||||||||||||||||||||||||||||||||
>740 | 6,387 | 114 | 6,501 | 2,445 | ||||||||||||||||||||||||||||||||||||||
Total | $ | 7,845 | $ | 161 | $ | 8,006 | $ | 3,041 | ||||||||||||||||||||||||||||||||||
Updated FICO | ||||||||||||||||||||||||||||||||||||||||||
<620 | $ | 50 | $ | 5 | $ | 55 | $ | 42 | ||||||||||||||||||||||||||||||||||
620 – 679 | 209 | 10 | 219 | 106 | ||||||||||||||||||||||||||||||||||||||
680 – 739 | 1,012 | 29 | 1,041 | 453 | ||||||||||||||||||||||||||||||||||||||
>740 | 6,574 | 117 | 6,691 | 2,440 | ||||||||||||||||||||||||||||||||||||||
Total | $ | 7,845 | $ | 161 | $ | 8,006 | $ | 3,041 | ||||||||||||||||||||||||||||||||||
Origination LTV | ||||||||||||||||||||||||||||||||||||||||||
<70% | $ | 5,306 | $ | 110 | $ | 5,416 | $ | 2,040 | ||||||||||||||||||||||||||||||||||
>70% – <90% | 2,523 | 45 | 2,568 | 977 | ||||||||||||||||||||||||||||||||||||||
>90% – <100% | 16 | 6 | 22 | 24 | ||||||||||||||||||||||||||||||||||||||
Total | $ | 7,845 | $ | 161 | $ | 8,006 | $ | 3,041 | ||||||||||||||||||||||||||||||||||
Percent of Loans | ||||||||||||||||||||||||||||||||||||||||||
that are 90+ Days | ||||||||||||||||||||||||||||||||||||||||||
Past Due and | ||||||||||||||||||||||||||||||||||||||||||
Weighted | Less than 90 Days | |||||||||||||||||||||||||||||||||||||||||
Average | Utilization | Past Due but on | ||||||||||||||||||||||||||||||||||||||||
31-Dec-13 | Balance | Updated FICO | Rate (1) | Nonaccrual Status | ||||||||||||||||||||||||||||||||||||||
Residential real estate mortgages: | ||||||||||||||||||||||||||||||||||||||||||
Estimated Current LTV | ||||||||||||||||||||||||||||||||||||||||||
<70% | $ | 6,649 | 775 | N/A | 0.05 | % | ||||||||||||||||||||||||||||||||||||
>70% – <90% | 1,181 | 763 | N/A | 0.34 | % | |||||||||||||||||||||||||||||||||||||
>90% – <100% | 86 | 732 | N/A | 4.77 | % | |||||||||||||||||||||||||||||||||||||
>100% | 90 | 730 | N/A | 10.50 | % | |||||||||||||||||||||||||||||||||||||
Total | $ | 8,006 | 772 | N/A | 0.26 | % | ||||||||||||||||||||||||||||||||||||
Home equity lines of credit: | ||||||||||||||||||||||||||||||||||||||||||
Estimated Current LTV | ||||||||||||||||||||||||||||||||||||||||||
<70% | $ | 2,127 | 773 | 36 | % | 0.13 | % | |||||||||||||||||||||||||||||||||||
>70% – <90% | 664 | 762 | 48 | % | 0.22 | % | ||||||||||||||||||||||||||||||||||||
>90% – <100% | 127 | 752 | 59 | % | 1.22 | % | ||||||||||||||||||||||||||||||||||||
>100% | 123 | 743 | 63 | % | 1.34 | % | ||||||||||||||||||||||||||||||||||||
Total | $ | 3,041 | 769 | 39 | % | 0.24 | % | |||||||||||||||||||||||||||||||||||
-1 | The Utilization Rate is calculated using the outstanding HELOC balance divided by the associated total line of credit. | |||||||||||||||||||||||||||||||||||||||||
N/A Not applicable. | ||||||||||||||||||||||||||||||||||||||||||
Residential real estate mortgages | ||||||||||||||||||||||||||||||||||||||||||
First | Purchased | Home equity | ||||||||||||||||||||||||||||||||||||||||
31-Dec-12 | mortgages | first mortgages | Total | lines of credit | ||||||||||||||||||||||||||||||||||||||
Year of origination | ||||||||||||||||||||||||||||||||||||||||||
Pre-2009 | $ | 867 | $ | 62 | $ | 929 | $ | 2,338 | ||||||||||||||||||||||||||||||||||
2009 | 305 | 6 | 311 | 338 | ||||||||||||||||||||||||||||||||||||||
2010 | 909 | 12 | 921 | 249 | ||||||||||||||||||||||||||||||||||||||
2011 | 1,270 | 53 | 1,323 | 198 | ||||||||||||||||||||||||||||||||||||||
2012 | 2,997 | 26 | 3,023 | 164 | ||||||||||||||||||||||||||||||||||||||
Total | $ | 6,348 | $ | 159 | $ | 6,507 | $ | 3,287 | ||||||||||||||||||||||||||||||||||
Origination FICO | ||||||||||||||||||||||||||||||||||||||||||
<620 | $ | 10 | $ | 1 | $ | 11 | $ | - | ||||||||||||||||||||||||||||||||||
620 – 679 | 98 | 16 | 114 | 23 | ||||||||||||||||||||||||||||||||||||||
680 – 739 | 1,141 | 40 | 1,181 | 633 | ||||||||||||||||||||||||||||||||||||||
>740 | 5,099 | 102 | 5,201 | 2,631 | ||||||||||||||||||||||||||||||||||||||
Total | $ | 6,348 | $ | 159 | $ | 6,507 | $ | 3,287 | ||||||||||||||||||||||||||||||||||
Updated FICO | ||||||||||||||||||||||||||||||||||||||||||
<620 | $ | 54 | $ | 6 | $ | 60 | $ | 49 | ||||||||||||||||||||||||||||||||||
620 – 679 | 191 | 13 | 204 | 117 | ||||||||||||||||||||||||||||||||||||||
680 – 739 | 940 | 34 | 974 | 510 | ||||||||||||||||||||||||||||||||||||||
>740 | 5,163 | 106 | 5,269 | 2,611 | ||||||||||||||||||||||||||||||||||||||
Total | $ | 6,348 | $ | 159 | $ | 6,507 | $ | 3,287 | ||||||||||||||||||||||||||||||||||
Origination LTV | ||||||||||||||||||||||||||||||||||||||||||
<70% | $ | 4,189 | $ | 97 | $ | 4,286 | $ | 2,225 | ||||||||||||||||||||||||||||||||||
>70% – <90% | 2,142 | 54 | 2,196 | 1,036 | ||||||||||||||||||||||||||||||||||||||
>90% – <100% | 17 | 8 | 25 | 26 | ||||||||||||||||||||||||||||||||||||||
Total | $ | 6,348 | $ | 159 | $ | 6,507 | $ | 3,287 | ||||||||||||||||||||||||||||||||||
Percent of Loans | ||||||||||||||||||||||||||||||||||||||||||
that are 90+ Days | ||||||||||||||||||||||||||||||||||||||||||
Past Due and | ||||||||||||||||||||||||||||||||||||||||||
Weighted | Less than 90 Days | |||||||||||||||||||||||||||||||||||||||||
Average | Utilization | Past Due but on | ||||||||||||||||||||||||||||||||||||||||
31-Dec-12 | Balance | Updated FICO | Rate (1) | Nonaccrual Status | ||||||||||||||||||||||||||||||||||||||
Residential real estate mortgages: | ||||||||||||||||||||||||||||||||||||||||||
Estimated Current LTV | ||||||||||||||||||||||||||||||||||||||||||
<70% | $ | 4,162 | 772 | N/A | 0.05 | % | ||||||||||||||||||||||||||||||||||||
>70% – <90% | 1,841 | 764 | N/A | 0.22 | % | |||||||||||||||||||||||||||||||||||||
>90% – <100% | 168 | 750 | N/A | 0.51 | % | |||||||||||||||||||||||||||||||||||||
>100% | 336 | 741 | N/A | 5.34 | % | |||||||||||||||||||||||||||||||||||||
Total | $ | 6,507 | 768 | N/A | 0.38 | % | ||||||||||||||||||||||||||||||||||||
Home equity lines of credit: | ||||||||||||||||||||||||||||||||||||||||||
Estimated Current LTV | ||||||||||||||||||||||||||||||||||||||||||
<70% | $ | 1,559 | 773 | 36 | % | 0.14 | % | |||||||||||||||||||||||||||||||||||
>70% – <90% | 1,020 | 766 | 46 | % | 0.18 | % | ||||||||||||||||||||||||||||||||||||
>90% – <100% | 267 | 759 | 54 | % | 0.44 | % | ||||||||||||||||||||||||||||||||||||
>100% | 441 | 753 | 59 | % | 1.06 | % | ||||||||||||||||||||||||||||||||||||
Total | $ | 3,287 | 767 | 42 | % | 0.31 | % | |||||||||||||||||||||||||||||||||||
-1 | The Utilization Rate is calculated using the outstanding HELOC balance divided by the associated total line of credit. | |||||||||||||||||||||||||||||||||||||||||
N/A Not applicable. | ||||||||||||||||||||||||||||||||||||||||||
The Company monitors the credit quality of personal loans secured by securities by reviewing the fair value of collateral to ensure adequate collateralization of at least 100% of the principal amount of the loans. All of these personal loans were fully collateralized by securities with fair values in excess of borrowings at December 31, 2013 and 2012. | ||||||||||||||||||||||||||||||||||||||||||
Equipment_Office_Facilities_an
Equipment, Office Facilities, and Property | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Equipment, Office Facilities, and Property [Abstract] | ' | ||||||||||||
Equipment, Office Facilities, and Property | ' | ||||||||||||
7.Equipment, Office Facilities, and Property | |||||||||||||
Equipment, office facilities, and property are detailed below: | |||||||||||||
December 31, | 2013 | 2012 | |||||||||||
Software | $ | 1,177 | $ | 1,067 | |||||||||
Buildings | 460 | 456 | |||||||||||
Leasehold improvements | 300 | 287 | |||||||||||
Information technology equipment | 245 | 398 | |||||||||||
Furniture and equipment | 131 | 133 | |||||||||||
Telecommunications equipment | 102 | 95 | |||||||||||
Construction in progress | 95 | 7 | |||||||||||
Land | 70 | 59 | |||||||||||
Total equipment, office facilities, and property | 2,580 | 2,502 | |||||||||||
Accumulated depreciation and amortization | -1,790 | -1,827 | |||||||||||
Total equipment, office facilities, and property – net | $ | 790 | $ | 675 | |||||||||
Depreciation and amortization expense for equipment, office facilities, and property was $154 million, $149 million, $135 million in 2013, 2012, and 2011, respectively. | |||||||||||||
Intangible_Assets_and_Goodwill
Intangible Assets and Goodwill | 12 Months Ended | ||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||
Intangible Assets and Goodwill [Abstract] | ' | ||||||||||||||||||||||
Intangible Assets and Goodwill | ' | ||||||||||||||||||||||
8.Intangible Assets and Goodwill | |||||||||||||||||||||||
The gross carrying value of intangible assets and accumulated amortization was: | |||||||||||||||||||||||
31-Dec-13 | 31-Dec-12 | ||||||||||||||||||||||
Gross | Net | Gross | Net | ||||||||||||||||||||
Carrying | Accumulated | Carrying | Carrying | Accumulated | Carrying | ||||||||||||||||||
Value | Amortization | Value | Value | Amortization | Value | ||||||||||||||||||
Customer relationships | $ | 274 | $ | 84 | $ | 190 | $ | 279 | $ | 51 | $ | 228 | |||||||||||
Technology | 89 | 27 | 62 | 89 | 16 | 73 | |||||||||||||||||
Trade name | 17 | 4 | 13 | 17 | 2 | 15 | |||||||||||||||||
Other | 2 | 1 | 1 | 5 | 2 | 3 | |||||||||||||||||
Total intangible assets | $ | 382 | $ | 116 | $ | 266 | $ | 390 | $ | 71 | $ | 319 | |||||||||||
Amortization expense for intangible assets was $48 million, $47 million, and $20 million in 2013, 2012, and 2011, respectively. | |||||||||||||||||||||||
Estimated future annual amortization expense for intangible assets as of December 31, 2013, is as follows: | |||||||||||||||||||||||
2014 | $ | 44 | |||||||||||||||||||||
2015 | $ | 40 | |||||||||||||||||||||
2016 | $ | 37 | |||||||||||||||||||||
2017 | $ | 34 | |||||||||||||||||||||
2018 | $ | 31 | |||||||||||||||||||||
Thereafter | $ | 80 | |||||||||||||||||||||
Total intangible assets | $ | 266 | |||||||||||||||||||||
Goodwill impairment charges since January 1, 2002 are immaterial. The changes in the carrying amount of goodwill, as allocated to the Company’s reportable segments for purposes of testing goodwill for impairment going forward, are presented in the following table: | |||||||||||||||||||||||
Investor | Advisor | ||||||||||||||||||||||
Services | Services | Total | |||||||||||||||||||||
Balance at December 31, 2011 | $ | 1,083 | $ | 78 | $ | 1,161 | |||||||||||||||||
Goodwill acquired and other changes during the period | 45 | 22 | 67 | ||||||||||||||||||||
Balance at December 31, 2012 | 1,128 | 100 | 1,228 | ||||||||||||||||||||
Goodwill acquired and other changes during the period | -1 | - | -1 | ||||||||||||||||||||
Balance at December 31, 2013 | $ | 1,127 | $ | 100 | $ | 1,227 | |||||||||||||||||
In testing for potential impairment of goodwill on April 1, 2013, management performed a qualitative assessment of each of the Company’s reporting units. As a result of this assessment, management concluded that goodwill was not impaired. The Company did not recognize any goodwill impairment in 2012 or 2011. | |||||||||||||||||||||||
Other_Assets
Other Assets | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Other Assets [Abstract] | ' | ||||||||||||
Other Assets | ' | ||||||||||||
9.Other Assets | |||||||||||||
The components of other assets are as follows: | |||||||||||||
December 31, | 2013 | 2012 | |||||||||||
Accounts receivable (1) | $ | 328 | $ | 417 | |||||||||
Interest and dividends receivable | 171 | 150 | |||||||||||
Prepaid expenses | 85 | 114 | |||||||||||
Other investments | 59 | 59 | |||||||||||
Deferred tax asset – net | 28 | - | |||||||||||
Other | 75 | 73 | |||||||||||
Total other assets | $ | 746 | $ | 813 | |||||||||
-1 | Accounts receivable includes accrued service fee income and a receivable from the Company’s loan servicer. | ||||||||||||
Deposits_from_Banking_Clients
Deposits from Banking Clients | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Deposits from Banking Clients [Abstract] | ' | ||||||||||||
Deposits from Banking Clients | ' | ||||||||||||
10.Deposits from Banking Clients | |||||||||||||
Deposits from banking clients consist of interest-bearing and non-interest-bearing deposits as follows: | |||||||||||||
December 31, | 2013 | 2012 | |||||||||||
Interest-bearing deposits: | |||||||||||||
Deposits swept from brokerage accounts | $ | 72,166 | $ | 58,229 | |||||||||
Checking | 12,053 | 11,632 | |||||||||||
Savings and other | 8,232 | 9,089 | |||||||||||
Total interest-bearing deposits | 92,451 | 78,950 | |||||||||||
Non-interest-bearing deposits | 521 | 427 | |||||||||||
Total deposits from banking clients | $ | 92,972 | $ | 79,377 | |||||||||
Payables_to_Brokers_Dealers_an
Payables to Brokers, Dealers, and Clearing Organizations | 12 Months Ended |
Dec. 31, 2013 | |
Payables to Brokers, Dealers, and Clearing Organizations [Abstract] | ' |
Payables to Brokers, Dealers, and Clearing Organizations | ' |
11.Payables to Brokers, Dealers, and Clearing Organizations | |
Payables to brokers, dealers, and clearing organizations include securities loaned of $1.2 billion and $882 million at December 31, 2013 and 2012, respectively. 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, 2013 and 2012. | |
Payables_to_Brokerage_Clients
Payables to Brokerage Clients | 12 Months Ended |
Dec. 31, 2013 | |
Payables to Brokerage Clients [Abstract] | ' |
Payables to Brokerage Clients | ' |
12.Payables to Brokerage Clients | |
The principal source of funding for Schwab’s margin lending is cash balances in brokerage client accounts, which are included in payables to brokerage clients. Cash balances in interest-bearing brokerage client accounts were $28.8 billion and $32.6 billion at December 31, 2013 and 2012, respectively. The average rate paid on cash balances in interest-bearing brokerage client accounts was 0.01% in 2013 and 2012. | |
Borrowings
Borrowings | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Borrowings [Abstract] | ' | ||||||||||||
Borrowings | ' | ||||||||||||
13.Borrowings | |||||||||||||
Long-term debt including unamortized debt discounts and premiums, where applicable, consists of the following: | |||||||||||||
December 31, | 2013 | 2012 | |||||||||||
Senior Notes | $ | 1,565 | $ | 1,288 | |||||||||
Senior Medium-Term Notes, Series A | 249 | 249 | |||||||||||
Finance lease obligation | 89 | 95 | |||||||||||
Total long-term debt | $ | 1,903 | $ | 1,632 | |||||||||
CSC has a universal automatic shelf registration statement (Shelf Registration Statement) on file with the Securities and Exchange Commission (the SEC), which enables CSC to issue debt, equity, and other securities. | |||||||||||||
The Senior Notes outstanding at December 31, 2013, have maturities ranging from 2015 to 2022 and fixed interest rates ranging from 0.850% to 4.45% with interest payable semi-annually. | |||||||||||||
On July 25, 2013, CSC issued $275 million of Senior Notes that mature in 2018 under its Shelf Registration Statement. The Senior Notes have a fixed interest rate of 2.20% with interest payable semi-annually. | |||||||||||||
In August 2012, CSC completed an exchange offer with certain eligible holders of its 4.950% Senior Notes due 2014 (Old Senior Notes), whereby Old Senior Notes in an aggregate principal amount of $256 million were exchanged for the same aggregate principal amount of 3.225% Senior Notes due 2022 (New Senior Notes) and cash consideration of $19 million. Pursuant to an exchange and registration rights agreement (Registration Rights Agreement), CSC filed an exchange registration with the SEC and launched an exchange offer on December 11, 2012, to allow the holders of the New Senior Notes to exchange such New Senior Notes for an equal principal amount of notes with substantially identical terms, except that they are generally freely transferable under the Securities Act of 1933. The exchange offer was completed on January 23, 2013 and substantially all of the New Senior Notes were exchanged. These notes have a fixed interest rate of 3.225% with interest payable semiannually. | |||||||||||||
On December 6, 2012, CSC issued $350 million of additional Senior Notes that mature in 2015 under the Shelf Registration Statement, which have a fixed interest rate of 0.850% with interest payable semi-annually. | |||||||||||||
On December 21, 2012, CSC redeemed all of its remaining outstanding Old Senior Notes of $494 million. In connection with the redemption, CSC paid the holders of the Old Senior Notes a make-whole premium of $31 million in addition to the $494 million principal payment. The make-whole premium was recorded in other revenue – net. | |||||||||||||
The Senior Medium-Term Notes, Series A (Medium-Term Notes) outstanding at December 31, 2013, mature in 2017 and have a fixed interest rate of 6.375% with interest payable semi-annually. | |||||||||||||
CSC and Schwab Capital Trust I, a statutory trust formed under the laws of the State of Delaware (Trust), previously closed a public offering of $300 million of the Trust’s fixed to floating-rate trust preferred securities. The proceeds from the sale of the trust preferred securities were invested by the Trust in fixed to floating rate Junior Subordinated Notes issued by CSC, of which $202 million remained outstanding at August 30, 2012. On August 31, 2012, CSC redeemed all of the outstanding fixed-to-floating rate trust preferred securities issued by the Trust for $207 million. The trust preferred securities were redeemed, along with the common securities issued by the Trust and held by CSC, as a result of the concurrent redemption in whole by CSC of the Junior Subordinated Notes held by the Trust which underlay the trust preferred securities. The redemption price represented 100% of the liquidation amount of each trust preferred security, plus accumulated and unpaid distributions up to and including the redemption date. | |||||||||||||
Schwab has a finance lease obligation related to an office building and land under a 20-year lease. The remaining finance lease obligation of $89 million at December 31, 2013, is being reduced by a portion of the lease payments over the remaining lease term of 11 years. | |||||||||||||
Annual maturities on long-term debt outstanding at December 31, 2013, are as follows: | |||||||||||||
2014 | $ | 6 | |||||||||||
2015 | 357 | ||||||||||||
2016 | 7 | ||||||||||||
2017 | 258 | ||||||||||||
2018 | 283 | ||||||||||||
Thereafter | 1,009 | ||||||||||||
Total maturities | 1,920 | ||||||||||||
Unamortized discount, net | -17 | ||||||||||||
Total long-term debt | $ | 1,903 | |||||||||||
CSC has authorization from its Board of Directors to issue unsecured commercial paper notes (Commercial Paper Notes) not to exceed $1.5 billion. Management has set a current limit for the commercial paper program of $800 million. The maturities of the Commercial Paper Notes may vary, but are not to exceed 270 days from the date of issue. The commercial paper is not redeemable prior to maturity and cannot be voluntarily prepaid. The proceeds of the commercial paper program are to be used for general corporate purposes. There were no borrowings of Commercial Paper Notes outstanding at December 31, 2013. At December 31, 2012, the amount of Commercial Paper Notes outstanding was $300 million, which is included in accrued expenses and other liabilities. The amount outstanding was repaid on January 2, 2013. | |||||||||||||
CSC maintains an $800 million committed, unsecured credit facility with a group of 12 banks, which is scheduled to expire in June 2014. This facility replaced a similar facility that expired in June 2013. The funds under this facility are available for general corporate purposes. The financial covenants under this facility require Schwab to maintain a minimum net capital ratio, as defined, Schwab Bank to be well capitalized, as defined, and CSC to maintain a minimum level of stockholders’ equity. At December 31, 2013, the minimum level of stockholders’ equity required under this facility was $7.1 billion (CSC’s stockholders’ equity at December 31, 2013, was $10.4 billion). There were no borrowings outstanding under these facilities at December 31, 2013 or 2012. | |||||||||||||
To manage short-term liquidity, Schwab maintains uncommitted, unsecured bank credit lines with a group of six banks totaling $942 million at December 31, 2013. CSC has direct access to $647 million of these credit lines. There were no borrowings outstanding under these lines at December 31, 2013 or 2012. | |||||||||||||
To partially satisfy the margin requirement of client option transactions with the Options Clearing Corporation, Schwab has unsecured standby LOCs with five banks in favor of the Options Clearing Corporation aggregating $225 million at December 31, 2013. There were no funds drawn under any of these LOCs at December 31, 2013 or 2012. In connection with its securities lending activities, Schwab is required to provide collateral to certain brokerage clients. Schwab satisfies the collateral requirements by providing cash as collateral. | |||||||||||||
In 2013, to partially satisfy the margin requirement of client option transactions with the Options Clearing Corporation, optionsXpress, Inc. issued an unsecured standby LOC with one bank in favor of the Options Clearing Corporation in the amount of $15 million. There were no funds drawn under this LOC at December 31, 2013. | |||||||||||||
Commitments_and_Contingencies
Commitments and Contingencies | 12 Months Ended | ||||||||||
Dec. 31, 2013 | |||||||||||
Commitments and Contingencies [Abstract] | ' | ||||||||||
Commitments and Contingencies | ' | ||||||||||
14.Commitments and Contingencies | |||||||||||
Operating leases: The Company has non-cancelable operating leases for office space and equipment. Future annual minimum rental commitments under these leases, net of contractual subleases, at December 31, 2013, are as follows: | |||||||||||
Operating | |||||||||||
Leases | Subleases | Net | |||||||||
2014 | $ | 123 | $ | 34 | $ | 89 | |||||
2015 | 108 | 34 | 74 | ||||||||
2016 | 96 | 34 | 62 | ||||||||
2017 | 81 | 28 | 53 | ||||||||
2018 | 45 | 6 | 39 | ||||||||
Thereafter | 107 | 8 | 99 | ||||||||
Total | $ | 560 | $ | 144 | $ | 416 | |||||
Certain leases contain provisions for renewal options, purchase options, and rent escalations based on increases in certain costs incurred by the lessor. Rent expense was $208 million, $203 million, and $187 million in 2013, 2012, and 2011, respectively. | |||||||||||
Purchase obligations: The Company has purchase obligations for services such as advertising and marketing, telecommunications, professional services, and hardware- and software-related agreements. At December 31, 2013, the Company has purchase obligations as follows: | |||||||||||
2014 | $ | 233 | |||||||||
2015 | 108 | ||||||||||
2016 | 64 | ||||||||||
2017 | 8 | ||||||||||
2018 | 1 | ||||||||||
Thereafter | 1 | ||||||||||
Total | $ | 415 | |||||||||
Guarantees and indemnifications: In the normal course of business, the Company provides certain indemnifications (i.e., protection against damage or loss) to counterparties in connection with the disposition of certain of its assets. Such indemnifications are generally standard contractual terms with various expiration dates and typically relate to title to the assets transferred, ownership of intellectual property rights (e.g., patents), accuracy of financial statements, compliance with laws and regulations, failure to pay, satisfy or discharge any liability, or to defend claims, as well as errors, omissions, and misrepresentations. The maximum potential future liability under these indemnifications cannot be estimated. The Company has not recorded a liability for these indemnifications and believes that the occurrence of events that would trigger payments under these agreements is remote. | |||||||||||
The Company 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. The Company partially satisfies the margin requirements by arranging unsecured standby LOCs, in favor of the Options Clearing Corporation, which are issued by multiple banks. At December 31, 2013, the aggregate face amount of these LOCs totaled $240 million. There were no funds drawn under any of these LOCs at December 31, 2013. In connection with its securities lending activities, the Company is required to provide collateral to certain brokerage clients. The Company satisfies the collateral requirements by providing cash as collateral. | |||||||||||
The Company also provides guarantees to securities clearing houses and exchanges under standard membership agreements, which require members to guarantee the performance of other members. Under the agreements, if another member becomes unable to satisfy its obligations to the clearing houses and exchanges, other members would be required to meet shortfalls. The Company’s liability under these arrangements is not quantifiable and may exceed the cash and securities it has posted as collateral. However, 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: The Company 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. | |||||||||||
The Company 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. With respect to all other pending matters, based on current information and consultation with counsel, it does not appear that the outcome of any such matter could be material to the financial condition, operating results or cash flows of the Company. However, predicting the outcome of a litigation or regulatory matter is inherently difficult, requiring significant judgment and evaluation of various factors, including the procedural status of the matter and any recent developments; prior experience and the experience of others in similar cases; available defenses, including potential opportunities to dispose of a case on the merits or procedural grounds before trial (e.g., motions to dismiss or for summary judgment); the progress of fact discovery; the opinions of counsel and experts regarding potential damages; potential opportunities for settlement and the status of any settlement discussions; and potential insurance coverage and indemnification. Often, as in the case of the Auction Rate Securities Regulatory Inquiries and Total Bond Market Fund Litigation matters described below, it is not possible to reasonably estimate potential liability, if any, or 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. | |||||||||||
Auction Rate Securities Regulatory Inquiries: Schwab has been responding to industry wide inquiries from federal and state regulators regarding sales of auction rate securities to clients who were unable to sell their holdings when the normal auction process for those securities froze unexpectedly in February 2008. On August 17, 2009, a civil complaint was filed against Schwab in New York state court by the Attorney General of the State of New York (NYAG) alleging material misrepresentations and omissions by Schwab regarding the risks of auction rate securities, and seeking restitution, disgorgement, penalties and other relief, including repurchase of securities held in client accounts. As reflected in a statement issued August 17, 2009, Schwab has responded that the allegations are without merit, and has been contesting all charges. By order dated October 24, 2011, the court granted Schwab’s motion to dismiss the complaint with prejudice. The NYAG appealed, and in a decision issued August 29, 2013, the Appellate Division reinstated two of the NYAG’s four causes of action. On December 31, 2013, the Appellate Division denied a petition by the NYAG for reconsideration and reinstatement of one of the other two causes of action. | |||||||||||
Total Bond Market Fund Litigation: On August 28, 2008, a class action lawsuit was filed in the U.S. District Court for the Northern District of California on behalf of investors in the Schwab Total Bond Market Fund™ (Northstar lawsuit). The lawsuit, which alleges violations of state law and federal securities law in connection with the fund’s investment policy, names Schwab Investments (registrant and issuer of the fund’s shares) and CSIM as defendants. Allegations include that the fund improperly deviated from its stated investment objectives by investing in collateralized mortgage obligations (CMOs) and investing more than 25% of fund assets in CMOs and mortgage-backed securities without obtaining a shareholder vote. Plaintiffs seek unspecified compensatory and rescission damages, unspecified equitable and injunctive relief, costs and attorneys’ fees. Plaintiffs’ federal securities law claim and certain of plaintiffs’ state law claims were dismissed in proceedings before the court and following a successful petition by defendants to the Ninth Circuit Court of Appeals. On August 8, 2011, the court dismissed plaintiffs’ remaining claims with prejudice. Plaintiffs have again appealed to the Ninth Circuit, where the case is currently pending. | |||||||||||
optionsXpress Regulatory Matters: optionsXpress entities and individual employees have been responding to certain pending regulatory matters which predate the Company’s acquisition of optionsXpress. On April 16, 2012, optionsXpress, Inc. was charged by the SEC in an administrative proceeding alleging violations of the firm’s close-out obligations under Regulation SHO (short sale delivery rules) in connection with certain customer trading activity. Following trial, in a decision issued June 7, 2013, the judge held that optionsXpress violated Regulation SHO and aided and abetted fraudulent trading activity by its customer, and ordered the firm to pay disgorgement and penalties. The Company continues to dispute the allegations and is appealing the decision. The Company has a contingent liability associated with this matter, which was not material at December 31, 2013. | |||||||||||
Financial_Instruments_Subject_
Financial Instruments Subject to Off-Balance Sheet Credit Risk or Concentration Risk | 12 Months Ended |
Dec. 31, 2013 | |
Financial Instruments Subject to Off-Balance Sheet Credit Risk or Concentration Risk [Abstract] | ' |
Financial Instruments Subject to Off-Balance Sheet Risk, Credit Risk, or Market Risk | ' |
15.Financial Instruments Subject to Off-Balance Sheet Credit Risk or Concentration Risk | |
Off-Balance Sheet Credit Risk | |
Securities lending: The Company loans client securities temporarily to other brokers 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, the Company may be exposed to the risk of acquiring the securities at prevailing market prices in order to satisfy its client obligations. The Company mitigates this risk by requiring credit approvals for counterparties, monitoring the fair value of securities loaned, and requiring additional cash as collateral when necessary. The fair value of client securities pledged in securities lending transactions to other broker-dealers was $1.1 billion and $852 million at December 31, 2013 and 2012, respectively. The Company has also pledged a portion of its securities owned in connection with securities lending transactions to other broker-dealers. Additionally, the Company borrows securities from other broker-dealers to fulfill short sales by clients. The fair value of these borrowed securities was $276 million and $121 million at December 31, 2013 and 2012, respectively. All of the Company’s securities lending transactions are subject to enforceable master netting arrangements with other broker-dealers. However, the Company does not net securities lending transactions and therefore, the Company’s securities loaned and securities borrowed are presented gross in the consolidated balance sheets. | |
Client trade settlement: The Company is obligated to settle transactions with brokers and other financial institutions even if the Company’s clients fail to meet their obligations to the Company. Clients are required to complete their transactions on settlement date, generally three business days after the trade date. If clients do not fulfill their contractual obligations, the Company may incur losses. The Company has 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: The Company provides margin loans to its clients which are collateralized by securities in their brokerage accounts and may be liable for the margin requirement of its client margin securities transactions. As clients write options or sell securities short, the Company may incur losses if the clients do not fulfill their obligations and the collateral in client accounts is insufficient to fully cover losses which clients may incur from these strategies. To mitigate this risk, the Company monitors required margin levels and requires clients to deposit additional collateral, or reduce positions to meet minimum collateral requirements. The contractual value of margin loans to clients was $12.8 billion and $11.6 billion at December 31, 2013 and 2012, respectively. | |
Clients with margin loans have agreed to allow the Company to pledge collateralized securities in their brokerage accounts in accordance with federal regulations. Under such regulations, the Company was allowed to pledge securities with a fair value of $18.2 billion and $17.1 billion at December 31, 2013 and 2012, respectively. The fair value of client securities pledged to fulfill the short sales of its clients was $1.6 billion and $1.2 billion at December 31, 2013 and 2012, respectively. The fair value of client securities pledged to fulfill the Company’s proprietary short sales, which resulted from facilitating clients’ dividend reinvestment elections, was $130 million and $109 million at December 31, 2013 and 2012, respectively. The Company may also pledge client securities to fulfill client margin requirements for open option contracts established with the OCC. The fair value of these pledged securities to the OCC was $1.3 billion and $1.9 billion at December 31, 2013 and 2012, respectively. | |
Resale and repurchase 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 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. At December 31, 2013 and 2012, the fair value of collateral received in connection with resale agreements that are available to be repledged or sold was $14.3 billion and $19.7 billion, respectively. Schwab utilizes the collateral provided under repurchase agreements to meet obligations under broker-dealer client protection rules, which place limitations on its ability to access such segregated securities. For Schwab to repledge or sell this collateral, it would be required to deposit cash and/or securities of an equal amount into its segregated reserve bank accounts in order to meet its segregated cash and investment requirement. The Company’s resale agreements are not subject to master netting arrangements. | |
Commitments to extend credit: Schwab Bank enters into commitments to extend credit to banking clients. Schwab Bank also has commitments to purchase certain First Mortgage loans and HELOCs under the Program with Quicken Loans, which began in 2012. The credit risk associated with these commitments varies depending on the creditworthiness of the client and the value of any collateral expected to be held. Collateral requirements vary by type of loan. At December 31, 2013 and 2012, the Company had commitments to purchase First Mortgage loans of $208 million and $867 million, respectively. Schwab Bank also has commitments to extend credit related to its clients’ unused HELOCs, personal loans secured by securities, and other lines of credit, which totaled $5.7 billion and $5.4 billion at December 31, 2013 and 2012, respectively. See also note “6 – Loans to Banking Clients and Related Allowance for Loan Losses.” | |
Financial Guarantees: See note “14 – Commitments and Contingencies.” | |
Concentration Risk | |
The Company has exposure to concentration risk when holding large positions of financial instruments collateralized by assets with similar economic characteristics or in securities of a single issuer or industry. | |
The fair value of the Company’s investments in mortgage-backed securities totaled $48.9 billion at December 31, 2013. Of these, $47.1 billion were issued by U.S. agencies and $1.8 billion were issued by private entities (non-agency securities). The fair value of the Company’s investments in mortgage-backed securities totaled $39.5 billion at December 31, 2012. Of these, $38.8 billion were issued by U.S. agencies and $733 million were non-agency securities. These U.S. agency and non-agency securities are included in securities available for sale and securities held to maturity. | |
The fair value of the Company’s investments in corporate debt securities and commercial paper totaled $9.2 billion and $8.0 billion at December 31, 2013 and 2012, respectively, with the majority issued by institutions in the financial services industry. These securities are included in securities available for sale, securities held to maturity, cash and cash equivalents, and other securities owned. | |
The fair value of the Company’s investments in asset-backed securities totaled $15.2 billion and $8.2 billion at December 31, 2013 and 2012, respectively, with the majority serviced by a single servicer. | |
The Company’s loans to banking clients include $7.3 billion and $6.0 billion of adjustable rate first lien residential real estate mortgage loans at December 31, 2013 and 2012, respectively. At December 31, 2013, approximately 40% of these mortgages consisted of loans with interest-only payment terms. At December 31, 2013, the interest rates on approximately 70% of these interest-only loans are not scheduled to reset for three or more years. At December 31, 2013, 46% of the residential real estate mortgages and 51% of the HELOC balances were secured by properties which are located in California. At December 31, 2012, 45% of the residential real estate mortgages and 50% of the HELOC balances were secured by properties which are located in California. For additional detail on concentrations in loans to banking clients, see note “6 – Loans to Banking Clients and Related Allowance for Loan Losses.” | |
The Company also has exposure to concentration risk from its margin and securities lending activities collateralized by securities of a single issuer or industry. This concentration risk is mitigated by collateral arrangements that require the fair value of such collateral exceeds the amounts loaned, as described above. | |
Fair_Values_of_Assets_and_Liab
Fair Values of Assets and Liabilities | 12 Months Ended | ||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||
Fair Values of Assets and Liabilities [Abstract] | ' | ||||||||||||||||||||||
Fair Values of Assets and Liabilities | ' | ||||||||||||||||||||||
16.Fair Values of Assets and Liabilities | |||||||||||||||||||||||
For a description of the fair value hierarchy and the Company’s fair value methodologies, including the use of independent third-party pricing services, see note “2 – Summary of Significant Accounting Policies.” The Company did not transfer any assets or liabilities between Level 1 and Level 2 during 2013 or 2012. In addition, the Company did not adjust prices received from the primary independent third-party pricing service at December 31, 2013 or 2012. | |||||||||||||||||||||||
Financial Instruments Recorded at Fair Value | |||||||||||||||||||||||
The following tables present the fair value hierarchy for assets measured at fair value. Liabilities recorded at fair value were not material, and therefore are not included in the following tables: | |||||||||||||||||||||||
Quoted Prices | |||||||||||||||||||||||
in Active Markets | Significant | Significant | |||||||||||||||||||||
for Identical | Other Observable | Unobservable | |||||||||||||||||||||
Assets | Inputs | Inputs | Balance at | ||||||||||||||||||||
31-Dec-13 | (Level 1) | (Level 2) | (Level 3) | Fair Value | |||||||||||||||||||
Cash equivalents: | |||||||||||||||||||||||
Money market funds | $ | 1,141 | $ | - | $ | - | $ | 1,141 | |||||||||||||||
Commercial paper | - | 22 | - | 22 | |||||||||||||||||||
Total cash equivalents | 1,141 | 22 | - | 1,163 | |||||||||||||||||||
Investments segregated and on deposit for | |||||||||||||||||||||||
regulatory purposes: | |||||||||||||||||||||||
Certificates of deposit | - | 2,737 | - | 2,737 | |||||||||||||||||||
U.S. Government securities | - | 2,539 | - | 2,539 | |||||||||||||||||||
Total investments segregated and on deposit for | |||||||||||||||||||||||
regulatory purposes | - | 5,276 | - | 5,276 | |||||||||||||||||||
Other securities owned: | |||||||||||||||||||||||
Schwab Funds® money market funds | 261 | - | - | 261 | |||||||||||||||||||
Equity and bond mutual funds | 208 | - | - | 208 | |||||||||||||||||||
State and municipal debt obligations | - | 32 | - | 32 | |||||||||||||||||||
Equity, U.S. Government and corporate debt, and | |||||||||||||||||||||||
other securities | 1 | 15 | - | 16 | |||||||||||||||||||
Total other securities owned | 470 | 47 | - | 517 | |||||||||||||||||||
Securities available for sale: | |||||||||||||||||||||||
U.S. agency mortgage-backed securities | - | 18,645 | - | 18,645 | |||||||||||||||||||
Asset-backed securities | - | 15,206 | - | 15,206 | |||||||||||||||||||
Corporate debt securities | - | 9,007 | - | 9,007 | |||||||||||||||||||
U.S. agency notes | - | 4,136 | - | 4,136 | |||||||||||||||||||
Certificates of deposit | - | 3,652 | - | 3,652 | |||||||||||||||||||
Non-agency residential mortgage-backed securities | - | 593 | - | 593 | |||||||||||||||||||
Non-agency commercial mortgage-backed securities | - | 279 | - | 279 | |||||||||||||||||||
Other securities | - | 100 | - | 100 | |||||||||||||||||||
Total securities available for sale | - | 51,618 | - | 51,618 | |||||||||||||||||||
Total | $ | 1,611 | $ | 56,963 | $ | - | $ | 58,574 | |||||||||||||||
Quoted Prices | |||||||||||||||||||||||
in Active Markets | Significant | Significant | |||||||||||||||||||||
for Identical | Other Observable | Unobservable | |||||||||||||||||||||
Assets | Inputs | Inputs | Balance at | ||||||||||||||||||||
31-Dec-12 | (Level 1) | (Level 2) | (Level 3) | Fair Value | |||||||||||||||||||
Cash equivalents: | |||||||||||||||||||||||
Money market funds | $ | 413 | $ | - | $ | - | $ | 413 | |||||||||||||||
Commercial paper | - | 1,076 | - | 1,076 | |||||||||||||||||||
Total cash equivalents | 413 | 1,076 | - | 1,489 | |||||||||||||||||||
Investments segregated and on deposit for | |||||||||||||||||||||||
regulatory purposes: | |||||||||||||||||||||||
Certificates of deposit | - | 2,976 | - | 2,976 | |||||||||||||||||||
U.S. Government securities | - | 1,767 | - | 1,767 | |||||||||||||||||||
Total investments segregated and on deposit for | |||||||||||||||||||||||
regulatory purposes | - | 4,743 | - | 4,743 | |||||||||||||||||||
Other securities owned: | |||||||||||||||||||||||
Schwab Funds® money market funds | 329 | - | - | 329 | |||||||||||||||||||
Equity and bond mutual funds | 217 | - | - | 217 | |||||||||||||||||||
State and municipal debt obligations | - | 48 | - | 48 | |||||||||||||||||||
Equity, U.S. Government and corporate debt, and | |||||||||||||||||||||||
other securities | 2 | 40 | - | 42 | |||||||||||||||||||
Total other securities owned | 548 | 88 | - | 636 | |||||||||||||||||||
Securities available for sale: | |||||||||||||||||||||||
U.S. agency mortgage-backed securities | - | 20,476 | - | 20,476 | |||||||||||||||||||
Asset-backed securities | - | 8,164 | - | 8,164 | |||||||||||||||||||
Corporate debt securities | - | 6,256 | - | 6,256 | |||||||||||||||||||
Certificates of deposit | - | 6,161 | - | 6,161 | |||||||||||||||||||
U.S. agency notes | - | 3,464 | - | 3,464 | |||||||||||||||||||
Non-agency residential mortgage-backed securities | - | 733 | - | 733 | |||||||||||||||||||
Commercial paper | - | 574 | - | 574 | |||||||||||||||||||
Other securities | - | 295 | - | 295 | |||||||||||||||||||
Total securities available for sale | - | 46,123 | - | 46,123 | |||||||||||||||||||
Total | $ | 961 | $ | 52,030 | $ | - | $ | 52,991 | |||||||||||||||
Financial Instruments Not Recorded at Fair Value | |||||||||||||||||||||||
Descriptions of the valuation methodologies and assumptions used to estimate the fair value of financial instruments not recorded at fair value are also described in note “2 – Summary of Significant Accounting Policies.” There were no significant changes in these methodologies or assumptions during 2013. The following table presents the fair value hierarchy for financial instruments not recorded at fair value at December 31, 2013: | |||||||||||||||||||||||
Quoted Prices | |||||||||||||||||||||||
in Active Markets | Significant | Significant | |||||||||||||||||||||
for Identical | Other Observable | Unobservable | |||||||||||||||||||||
Carrying | Assets | Inputs | Inputs | Balance at | |||||||||||||||||||
31-Dec-13 | Amount | (Level 1) | (Level 2) | (Level 3) | Fair Value | ||||||||||||||||||
Assets: | |||||||||||||||||||||||
Cash and cash equivalents | $ | 6,565 | $ | - | $ | 6,565 | $ | - | $ | 6,565 | |||||||||||||
Cash and investments segregated and | |||||||||||||||||||||||
on deposit for regulatory purposes | 18,273 | - | 18,273 | - | 18,273 | ||||||||||||||||||
Receivables from brokers, dealers, and | |||||||||||||||||||||||
clearing organizations | 509 | - | 509 | - | 509 | ||||||||||||||||||
Receivables from brokerage clients – net | 13,949 | - | 13,949 | - | 13,949 | ||||||||||||||||||
Securities held to maturity: | |||||||||||||||||||||||
U.S. agency mortgage-backed securities | 29,260 | - | 28,500 | - | 28,500 | ||||||||||||||||||
Non-agency commercial mortgage-backed | |||||||||||||||||||||||
securities | 958 | - | 890 | - | 890 | ||||||||||||||||||
Other securities | 100 | - | 100 | - | 100 | ||||||||||||||||||
Total securities held to maturity | 30,318 | - | 29,490 | - | 29,490 | ||||||||||||||||||
Loans to banking clients – net: | |||||||||||||||||||||||
Residential real estate mortgages | 8,006 | - | 7,930 | - | 7,930 | ||||||||||||||||||
Home equity lines of credit | 3,041 | - | 3,043 | - | 3,043 | ||||||||||||||||||
Personal loans secured by securities | 1,384 | - | 1,384 | - | 1,384 | ||||||||||||||||||
Other | 36 | - | 35 | - | 35 | ||||||||||||||||||
Total loans to banking clients – net | 12,467 | - | 12,392 | - | 12,392 | ||||||||||||||||||
Other assets | 64 | - | 64 | - | 64 | ||||||||||||||||||
Total | $ | 82,145 | $ | - | $ | 81,242 | $ | - | $ | 81,242 | |||||||||||||
Liabilities: | |||||||||||||||||||||||
Deposits from banking clients | $ | 92,972 | $ | - | $ | 92,972 | $ | - | $ | 92,972 | |||||||||||||
Payables to brokers, dealers, and clearing | |||||||||||||||||||||||
organizations | 1,467 | - | 1,467 | - | 1,467 | ||||||||||||||||||
Payables to brokerage clients | 35,333 | - | 35,333 | - | 35,333 | ||||||||||||||||||
Accrued expenses and other liabilities | 680 | - | 680 | - | 680 | ||||||||||||||||||
Long-term debt | 1,903 | - | 1,989 | - | 1,989 | ||||||||||||||||||
Total | $ | 132,355 | $ | - | $ | 132,441 | $ | - | $ | 132,441 | |||||||||||||
Quoted Prices | |||||||||||||||||||||||
in Active Markets | Significant | Significant | |||||||||||||||||||||
for Identical | Other Observable | Unobservable | |||||||||||||||||||||
Carrying | Assets | Inputs | Inputs | Balance at | |||||||||||||||||||
31-Dec-12 | Amount | (Level 1) | (Level 2) | (Level 3) | Fair Value | ||||||||||||||||||
Assets: | |||||||||||||||||||||||
Cash and cash equivalents | $ | 11,174 | $ | - | $ | 11,174 | $ | - | $ | 11,174 | |||||||||||||
Cash and investments segregated and | |||||||||||||||||||||||
on deposit for regulatory purposes | 23,723 | - | 23,723 | - | 23,723 | ||||||||||||||||||
Receivables from brokers, dealers, and | |||||||||||||||||||||||
clearing organizations | 333 | - | 333 | - | 333 | ||||||||||||||||||
Receivables from brokerage clients – net | 13,453 | - | 13,453 | - | 13,453 | ||||||||||||||||||
Securities held to maturity: | |||||||||||||||||||||||
U.S. agency mortgage-backed securities | 17,750 | - | 18,289 | - | 18,289 | ||||||||||||||||||
Other securities | 444 | - | 443 | - | 443 | ||||||||||||||||||
Total securities held to maturity | 18,194 | - | 18,732 | - | 18,732 | ||||||||||||||||||
Loans to banking clients – net: | |||||||||||||||||||||||
Residential real estate mortgages | 6,471 | - | 6,687 | - | 6,687 | ||||||||||||||||||
Home equity lines of credit | 3,267 | - | 3,295 | - | 3,295 | ||||||||||||||||||
Personal loans secured by securities | 963 | - | 963 | - | 963 | ||||||||||||||||||
Other | 25 | - | 24 | - | 24 | ||||||||||||||||||
Total loans to banking clients – net | 10,726 | - | 10,969 | - | 10,969 | ||||||||||||||||||
Other assets | 64 | - | 64 | - | 64 | ||||||||||||||||||
Total | $ | 77,667 | $ | - | $ | 78,448 | $ | - | $ | 78,448 | |||||||||||||
Liabilities: | |||||||||||||||||||||||
Deposits from banking clients | $ | 79,377 | $ | - | $ | 79,377 | $ | - | $ | 79,377 | |||||||||||||
Payables to brokers, dealers, and clearing | |||||||||||||||||||||||
organizations | 1,068 | - | 1,068 | - | 1,068 | ||||||||||||||||||
Payables to brokerage clients | 40,330 | - | 40,330 | - | 40,330 | ||||||||||||||||||
Accrued expenses and other liabilities | 353 | - | 353 | - | 353 | ||||||||||||||||||
Long-term debt | 1,632 | - | 1,782 | - | 1,782 | ||||||||||||||||||
Total | $ | 122,760 | $ | - | $ | 122,910 | $ | - | $ | 122,910 | |||||||||||||
Stockholders_Equity
Stockholders' Equity | 12 Months Ended | ||||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||||
Stockholders' Equity [Abstract] | ' | ||||||||||||||||||||||||||
Stockholders' Equity | ' | ||||||||||||||||||||||||||
17.Stockholders’ Equity | |||||||||||||||||||||||||||
The Company did not issue any shares of common stock during 2013, 2012, or 2011, respectively. | |||||||||||||||||||||||||||
The Company was authorized to issue 9,940,000 shares of preferred stock, $0.01 par value, at December 31, 2013 and 2012. The Company’s preferred stock issued and outstanding is as follows: | |||||||||||||||||||||||||||
December 31, | 2013 | 2012 | |||||||||||||||||||||||||
Shares | Shares | ||||||||||||||||||||||||||
Issued and | Liquidation | Issued and | Liquidation | ||||||||||||||||||||||||
Outstanding | Preference | Liquidation | Carrying | Outstanding | Preference | Liquidation | Carrying | ||||||||||||||||||||
(In thousands) | Per Share | Preference | Value | (In thousands) | Per Share | Preference | Value | ||||||||||||||||||||
Series A | 400 | $ | 1,000 | $ | 400 | $ | 395 | 400 | $ | 1,000 | $ | 400 | $ | 394 | |||||||||||||
Series B | 485 | $ | 1,000 | 485 | 474 | 485 | $ | 1,000 | 485 | 471 | |||||||||||||||||
Total Preferred Stock | 885 | $ | 885 | $ | 869 | 885 | $ | 885 | $ | 865 | |||||||||||||||||
In January 2012, the Company issued and sold 400,000 shares of fixed-to-floating rate non-cumulative perpetual preferred stock, Series A (Series A Preferred Stock). Net proceeds received from the sale were $394 million. The Series A Preferred Stock has no stated maturity and has a fixed dividend rate of 7.000% until February 2022 and a floating rate equal to three-month LIBOR plus 4.820% thereafter. During the fixed rate period, dividends, if declared, will be payable semi-annually in arrears. During the floating rate period, dividends, if declared, will be payable quarterly in arrears. Dividends are not cumulative. Under the terms of the Series A Preferred Stock, the Company’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 A Preferred Stock, is subject to restrictions in the event that the Company does not declare and either pay or set aside a sum sufficient for payment of dividends on the Series A Preferred Stock for the immediately preceding dividend period. The Series A Preferred Stock is redeemable at the Company’s option, in whole or in part, on any dividend payment date on or after February 1, 2022 or, in whole but not in part, within 90 days following a regulatory capital treatment event as defined in its Certificate of Designations. | |||||||||||||||||||||||||||
In June 2012, the Company issued and sold 19,400,000 depositary shares, each representing a 1/40th ownership interest in a share of 6.00% non-cumulative perpetual preferred stock, Series B, equivalent to $25 per depositary share (Series B Preferred Stock). Net proceeds received from the sale were $469 million. The Series B Preferred Stock has no stated maturity and has a fixed dividend rate of 6.00%. Dividends, if declared, will be payable quarterly in arrears. Dividends are not cumulative. Under the terms of the Series B Preferred Stock, the Company’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 B Preferred Stock, is subject to restrictions in the event that the Company does not declare and either pay or set aside a sum sufficient for payment of dividends on the Series B Preferred Stock for the immediately preceding dividend period. The Series B Preferred Stock is redeemable at the Company’s option, in whole or in part, on any dividend payment date on or after September 1, 2017 or, in whole but not in part, within 90 days following a regulatory capital treatment event as defined in its Certificate of Designations. | |||||||||||||||||||||||||||
Accumulated_Other_Comprehensiv
Accumulated Other Comprehensive Income | 12 Months Ended | ||||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||||
Accumulated Other Comprehensive Income [Abstract] | ' | ||||||||||||||||||||||||||
Accumulated Other Comprehensive Income | ' | ||||||||||||||||||||||||||
18.Accumulated Other Comprehensive Income | |||||||||||||||||||||||||||
Accumulated other comprehensive income represents cumulative gains and losses that are not reflected in earnings. The components of other comprehensive (loss) income are as follows: | |||||||||||||||||||||||||||
Year Ended December 31, | 2013 | 2012 | 2011 | ||||||||||||||||||||||||
Before | Tax | Net of | Before | Tax | Net of | Before | Tax | Net of | |||||||||||||||||||
tax | effect | tax | tax | effect | tax | tax | effect | tax | |||||||||||||||||||
Change in net unrealized gain on | |||||||||||||||||||||||||||
securities available for sale: | |||||||||||||||||||||||||||
Net unrealized (loss) gain | $ | -468 | $ | 176 | $ | -292 | $ | 470 | $ | -177 | $ | 293 | $ | -43 | $ | 16 | $ | -27 | |||||||||
Reclassification of impairment charges | |||||||||||||||||||||||||||
included in net impairment losses on | |||||||||||||||||||||||||||
securities | 10 | -4 | 6 | 32 | -12 | 20 | 31 | -12 | 19 | ||||||||||||||||||
Other reclassifications included in | |||||||||||||||||||||||||||
other revenue | -7 | 3 | -4 | -38 | 14 | -24 | 1 | - | 1 | ||||||||||||||||||
Change in net unrealized gain on | |||||||||||||||||||||||||||
securities available for sale | -465 | 175 | -290 | 464 | -175 | 289 | -11 | 4 | -7 | ||||||||||||||||||
Other | 1 | - | 1 | 1 | - | 1 | -1 | - | -1 | ||||||||||||||||||
Other comprehensive (loss) income | $ | -464 | $ | 175 | $ | -289 | $ | 465 | $ | -175 | $ | 290 | $ | -12 | $ | 4 | $ | -8 | |||||||||
Accumulated other comprehensive income balances are as follows: | |||||||||||||||||||||||||||
Net unrealized | Total | ||||||||||||||||||||||||||
gain on securities | accumulated other | ||||||||||||||||||||||||||
available for sale | Other | comprehensive income | |||||||||||||||||||||||||
Balance at December 31, 2010 | $ | 17 | $ | -1 | $ | 16 | |||||||||||||||||||||
Other net changes | -7 | -1 | -8 | ||||||||||||||||||||||||
Balance at December 31, 2011 | $ | 10 | $ | -2 | $ | 8 | |||||||||||||||||||||
Other net changes | 289 | 1 | 290 | ||||||||||||||||||||||||
Balance at December 31, 2012 | $ | 299 | $ | -1 | $ | 298 | |||||||||||||||||||||
Other net changes | -290 | 1 | -289 | ||||||||||||||||||||||||
Balance at December 31, 2013 | $ | 9 | $ | - | $ | 9 | |||||||||||||||||||||
Employee_Incentive_Retirement_
Employee Incentive, Retirement, and Deferred Compensation Plans | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Employee Incentive, Retirement, and Deferred Compensation Plans [Abstract] | ' | ||||||||||||||||
Employee Incentive, Retirement, and Deferred Compensation Plans | ' | ||||||||||||||||
19.Employee Incentive, Retirement, and Deferred Compensation Plans | |||||||||||||||||
The Company’s stock incentive plans provide for granting options, restricted stock units, and restricted stock awards to employees, officers, and directors. In addition, the Company offers retirement and employee stock purchase plans to eligible employees and sponsors deferred compensation plans for eligible officers and non-employee directors. | |||||||||||||||||
A summary of the Company’s stock-based compensation and related income tax benefit is as follows: | |||||||||||||||||
Year Ended December 31, | 2013 | 2012 | 2011 | ||||||||||||||
Stock option expense | $ | 52 | $ | 57 | $ | 61 | |||||||||||
Restricted stock unit expense | 60 | 40 | 23 | ||||||||||||||
Restricted stock award expense | - | 5 | 12 | ||||||||||||||
Employee stock purchase plan expense | 4 | 3 | 3 | ||||||||||||||
Total stock-based compensation expense | $ | 116 | $ | 105 | $ | 99 | |||||||||||
Income tax benefit on stock-based compensation | $ | -43 | $ | -39 | $ | -37 | |||||||||||
The Company issues shares for stock options and restricted stock awards from treasury stock. At December 31, 2013, the Company was authorized to grant up to 67 million common shares under its existing stock incentive plans. Additionally, at December 31, 2013, the Company had 42 million shares reserved for future issuance under its employee stock purchase plan. | |||||||||||||||||
As of December 31, 2013, there was $189 million of total unrecognized compensation cost, net of forfeitures, related to outstanding stock options, restricted stock awards, and restricted stock units, which is expected to be recognized through 2017 with a remaining weighted-average service period of 2.8 years. | |||||||||||||||||
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 within seven or ten years from the date of grant. Options generally vest annually over a three- to five-year period from the date of grant. Certain options were granted at an exercise price above the market value of common stock on the date of grant (i.e., premium-priced options). | |||||||||||||||||
The Company’s stock option activity is summarized below: | |||||||||||||||||
Weighted- | |||||||||||||||||
Weighted- | Average | ||||||||||||||||
Average | Remaining | Aggregate | |||||||||||||||
Number | Exercise Price | Contractual | Intrinsic | ||||||||||||||
of Options | per Share | Life (in years) | Value | ||||||||||||||
Outstanding at December 31, 2012 | 57 | $ | 16.04 | ||||||||||||||
Granted | 7 | $ | 21.71 | ||||||||||||||
Exercised | -16 | $ | 16.47 | ||||||||||||||
Forfeited | -1 | $ | 13.39 | ||||||||||||||
Expired | -1 | $ | 19.96 | ||||||||||||||
Outstanding at December 31, 2013 | 46 | $ | 16.74 | 6.83 | $ | 427 | |||||||||||
Vested and expected to vest at December 31, 2013 | 44 | $ | 16.76 | 6.74 | $ | 406 | |||||||||||
Vested and exercisable December 31, 2013 | 25 | $ | 17.17 | 5.33 | $ | 220 | |||||||||||
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, | 2013 | 2012 | 2011 | ||||||||||||||
Weighted-average fair value of options granted per share | $ | 6.33 | $ | 4.07 | $ | 4.16 | |||||||||||
Cash received from options exercised | $ | 258 | $ | 35 | $ | 96 | |||||||||||
Tax benefit realized on options exercised | $ | - | $ | 1 | $ | 7 | |||||||||||
Aggregate intrinsic value of options exercised | $ | 82 | $ | 9 | $ | 38 | |||||||||||
Management uses a binomial option pricing model to estimate the fair value of options granted. The binomial model takes into account the contractual term of the stock option, expected volatility, dividend yield, and risk-free interest rate. Expected volatility is based on the implied volatility of publicly-traded options on CSC’s stock. Dividend yield is based on the average historical CSC dividend yield. The risk-free interest rate is based on the yield of a U.S. Treasury zero-coupon issue with a remaining term similar to the contractual term of the option. Management uses historical option exercise data, which includes employee termination data to estimate the probability of future option exercises. Management uses the Black-Scholes model to solve for the expected life of options valued with the binomial model presented below. The assumptions used to value the Company’s options granted during the years presented and their expected lives were as follows: | |||||||||||||||||
Year Ended December 31, | 2013 | 2012 | 2011 | ||||||||||||||
Weighted-average expected dividend yield | 1.13 | % | 0.99 | % | 0.85 | % | |||||||||||
Weighted-average expected volatility | 28 | % | 31 | % | 36 | % | |||||||||||
Weighted-average risk-free interest rate | 2.5 | % | 1.8 | % | 2.1 | % | |||||||||||
Expected life (in years) | 4.6 – 7.9 | 3.0 – 6.7 | 0.0 – 6.3 | ||||||||||||||
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 three- to five-year period, while some vest based upon the Company achieving certain financial or other measures. 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 2013, 2012, and 2011 was $78 million, $30 million, and $13 million, respectively. | |||||||||||||||||
The Company’s restricted stock units activity is summarized below: | |||||||||||||||||
Weighted- | |||||||||||||||||
Average Grant | |||||||||||||||||
Number | Date Fair Value | ||||||||||||||||
of Units | per Unit | ||||||||||||||||
Outstanding at December 31, 2012 | 11 | $ | 13.34 | ||||||||||||||
Granted | 4 | $ | 21.32 | ||||||||||||||
Vested | -3 | $ | 22.44 | ||||||||||||||
Forfeited | -1 | $ | 14.17 | ||||||||||||||
Outstanding at December 31, 2013 | 11 | $ | 16.11 | ||||||||||||||
Retirement Plan | |||||||||||||||||
Upon completing three months of consecutive service, employees of the Company can participate in the Company’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 $63 million, $59 million, and $53 million in 2013, 2012, and 2011, respectively. | |||||||||||||||||
Deferred Compensation Plans | |||||||||||||||||
The Company’s deferred compensation plan for officers permits participants to defer the receipt of certain cash compensation. The deferred compensation liability was $135 million and $127 million at December 31, 2013 and 2012, respectively. The Company’s deferred compensation plan for non-employee directors permits participants to defer receipt of all or a portion of their director fees and to receive either a grant of stock options, or upon ceasing to serve as a director, the number of shares of CSC’s common stock that would have resulted from investing the deferred fee amount into CSC’s common stock. | |||||||||||||||||
Taxes_on_Income
Taxes on Income | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Taxes on Income [Abstract] | ' | ||||||||||||
Taxes on Income | ' | ||||||||||||
20.Taxes on Income | |||||||||||||
The components of income tax expense are as follows: | |||||||||||||
Year Ended December 31, | 2013 | 2012 | 2011 | ||||||||||
Current: | |||||||||||||
Federal | $ | 598 | $ | 489 | $ | 424 | |||||||
State | 57 | 28 | 52 | ||||||||||
Total current | 655 | 517 | 476 | ||||||||||
Deferred: | |||||||||||||
Federal | -20 | 5 | 44 | ||||||||||
State | -1 | - | 8 | ||||||||||
Total deferred | -21 | 5 | 52 | ||||||||||
Taxes on income | $ | 634 | $ | 522 | $ | 528 | |||||||
The temporary differences that created deferred tax assets and liabilities are detailed below: | |||||||||||||
December 31, | 2013 | 2012 | |||||||||||
Deferred tax assets: | |||||||||||||
Employee compensation, severance, and benefits | $ | 190 | $ | 189 | |||||||||
Facilities lease commitments | 33 | 35 | |||||||||||
Reserves and allowances | 30 | 37 | |||||||||||
State and local taxes | 12 | - | |||||||||||
Net operating loss carryforwards | 6 | 6 | |||||||||||
Total deferred tax assets | 271 | 267 | |||||||||||
Valuation allowance | -4 | -3 | |||||||||||
Deferred tax assets – net of valuation allowance | 267 | 264 | |||||||||||
Deferred tax liabilities: | |||||||||||||
Depreciation and amortization | -142 | -166 | |||||||||||
Capitalized internal-use software development costs | -62 | -50 | |||||||||||
Deferred cancellation of debt income | -11 | -11 | |||||||||||
Deferred loan costs | -10 | -15 | |||||||||||
Deferred Senior Note exchange | -7 | -6 | |||||||||||
Net unrealized gain on securities available for sale | -5 | -179 | |||||||||||
Other | -2 | -7 | |||||||||||
Total deferred tax liabilities | -239 | -434 | |||||||||||
Deferred tax asset (liability) – net (1) | $ | 28 | $ | -170 | |||||||||
-1 | Amounts are included in other assets and in accrued expenses and other liabilities at December 31, 2013 and 2012, respectively. | ||||||||||||
A reconciliation of the federal statutory income tax rate to the effective income tax rate is as follows: | |||||||||||||
Year Ended December 31, | 2013 | 2012 | 2011 | ||||||||||
Federal statutory income tax rate | 35.0 | % | 35.0 | % | 35.0 | % | |||||||
State income taxes, net of federal tax benefit (1) | 2.3 | 1.2 | 2.5 | ||||||||||
Other | -0.1 | -0.2 | 0.4 | ||||||||||
Effective income tax rate | 37.2 | % | 36.0 | % | 37.9 | % | |||||||
Includes the impact of a non-recurring state tax benefit of which $4 million and $20 million were recorded in 2013 and 2012, respectively. | |||||||||||||
-1 | |||||||||||||
A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows: | |||||||||||||
December 31, | 2013 | 2012 | |||||||||||
Balance at beginning of year | $ | 12 | $ | 13 | |||||||||
Additions for tax positions related to the current year | 1 | 1 | |||||||||||
Additions for tax positions related to prior years | - | 1 | |||||||||||
Reductions due to lapse of statute of limitations | -2 | -2 | |||||||||||
Reductions for settlements with tax authorities | -1 | -1 | |||||||||||
Balance at end of year | $ | 10 | $ | 12 | |||||||||
The federal returns for 2010 through 2012 remain open to Federal tax examinations. The years open to examination by state and local governments vary by jurisdiction. | |||||||||||||
Earnings_Per_Common_Share
Earnings Per Common Share | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Earnings Per Common Share [Abstract] | ' | ||||||||||||
Earnings Per Common Share | ' | ||||||||||||
21.Earnings Per Common Share | |||||||||||||
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 the effect of outstanding stock options and unvested restricted stock awards and units. EPS under the basic and diluted computations is as follows: | |||||||||||||
Year Ended December 31, | 2013 | 2012 | 2011 | ||||||||||
Net income | $ | 1,071 | $ | 928 | $ | 864 | |||||||
Preferred stock dividends | -61 | -45 | - | ||||||||||
Net income available to common stockholders | $ | 1,010 | $ | 883 | $ | 864 | |||||||
Weighted-average common shares outstanding — basic | 1,285 | 1,274 | 1,227 | ||||||||||
Common stock equivalent shares related to stock incentive plans | 8 | 1 | 2 | ||||||||||
Weighted-average common shares outstanding — diluted (1) | 1,293 | 1,275 | 1,229 | ||||||||||
Basic EPS | $ | .78 | $ | .69 | $ | .70 | |||||||
Diluted EPS | $ | .78 | $ | .69 | $ | .70 | |||||||
-1 | Antidilutive stock options and restricted stock awards excluded from the calculation of diluted EPS totaled 34 million, 74 million, and 63 million shares in 2013, 2012, and 2011, respectively. | ||||||||||||
Regulatory_Requirements
Regulatory Requirements | 12 Months Ended | |||||||||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||||||||
Regulatory Requirements [Abstract] | ' | |||||||||||||||||||||||||
Regulatory Requirements | ' | |||||||||||||||||||||||||
22.Regulatory Requirements | ||||||||||||||||||||||||||
CSC is a savings and loan holding company and Schwab Bank, CSC’s depository institution subsidiary, is a federal savings bank. CSC is subject to supervision and regulation by the Board of Governors of the Federal Reserve System (the Federal Reserve) and Schwab Bank is subject to supervision and regulation by the Office of the Comptroller of the Currency (the OCC). CSC is currently not subject to specific statutory capital requirements, however CSC is required to serve as a source of strength for Schwab Bank. Under the “Dodd-Frank Wall Street Reform and Consumer Protection Act,” CSC will be subject to new minimum leverage and minimum risk-based capital ratio requirements that will be set by the Federal Reserve that are at least as stringent as the current requirements generally applicable to insured depository institutions. | ||||||||||||||||||||||||||
Schwab Bank is subject to regulation and supervision and to various requirements and restrictions under federal and state laws, including regulatory capital guidelines. Among other things, these requirements also restrict and govern the terms of affiliate transactions, such as extensions of credit and repayment of loans between Schwab Bank and CSC or CSC’s other subsidiaries. In addition, Schwab Bank is required to provide notice to and may be required to obtain approval of the OCC and the Federal Reserve to declare dividends to CSC. The federal banking agencies have broad powers to enforce these regulations, including the power to terminate deposit insurance, impose substantial fines and other civil and criminal penalties, and appoint a conservator or receiver. Under the Federal Deposit Insurance Act, Schwab Bank could be subject to restrictive actions if it were to fall within one of the lowest three of five capital categories. Schwab Bank is required to maintain minimum capital levels as specified in federal banking laws and 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 Schwab Bank. At December 31, 2013, CSC and Schwab Bank met the capital level requirements. | ||||||||||||||||||||||||||
The regulatory capital and ratios for Schwab Bank are as follows: | ||||||||||||||||||||||||||
Minimum to be | Minimum Capital | |||||||||||||||||||||||||
Actual | Well Capitalized | Requirement | ||||||||||||||||||||||||
Amount | Ratio | Amount | Ratio | Amount | Ratio | |||||||||||||||||||||
31-Dec-13 | ||||||||||||||||||||||||||
Tier 1 Risk-Based Capital | $ | 6,550 | 19.0 | % | $ | 2,074 | 6.0 | % | $ | 1,383 | 4.0 | % | ||||||||||||||
Total Risk-Based Capital | $ | 6,599 | 19.1 | % | $ | 3,457 | 10.0 | % | $ | 2,766 | 8.0 | % | ||||||||||||||
Tier 1 Leverage | $ | 6,550 | 6.6 | % | $ | 4,993 | 5.0 | % | $ | 3,994 | 4.0 | % | ||||||||||||||
Tangible Equity | $ | 6,550 | 6.6 | % | N/A | $ | 1,997 | 2.0 | % | |||||||||||||||||
31-Dec-12 | ||||||||||||||||||||||||||
Tier 1 Risk-Based Capital | $ | 5,707 | 20.0 | % | $ | 1,709 | 6.0 | % | $ | 1,139 | 4.0 | % | ||||||||||||||
Total Risk-Based Capital | $ | 5,760 | 20.2 | % | $ | 2,848 | 10.0 | % | $ | 2,279 | 8.0 | % | ||||||||||||||
Tier 1 Leverage | $ | 5,707 | 6.7 | % | $ | 4,266 | 5.0 | % | $ | 3,412 | 4.0 | % | ||||||||||||||
Tangible Equity | $ | 5,707 | 6.7 | % | N/A | $ | 1,706 | 2.0 | % | |||||||||||||||||
N/A Not applicable. | ||||||||||||||||||||||||||
Based on its regulatory capital ratios at December 31, 2013 and 2012, Schwab Bank is considered well capitalized (the highest category) pursuant to banking regulatory guidelines. There are no conditions or events since December 31, 2013, that management believes have changed Schwab Bank’s capital category. | ||||||||||||||||||||||||||
The Federal Reserve requires Schwab Bank to maintain reserve balances at the Federal Reserve Bank based on certain deposit levels. Schwab Bank’s average reserve requirement was $1.2 billion and $1.1 billion in 2013 and 2012, respectively. | ||||||||||||||||||||||||||
CSC’s principal U.S. broker-dealers are Schwab and optionsXpress, Inc. optionsXpress, Inc. is a wholly-owned subsidiary of optionsXpress. Schwab and optionsXpress, Inc. are both subject to Rule 15c3-1 under the Securities Exchange Act of 1934 (the Uniform Net Capital Rule). Schwab and optionsXpress, Inc. compute 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 ($250,000 for Schwab), 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 to its parent company or employees 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. | ||||||||||||||||||||||||||
optionsXpress, Inc. is also subject to Commodity Futures Trading Commission Regulation 1.17 (Reg. 1.17) under the Commodity Exchange Act, which also requires the maintenance of minimum net capital. optionsXpress, Inc., as a futures commission merchant, is required to maintain minimum net capital equal to the greater of its net capital requirement under Reg. 1.17 ($1 million), or the sum of 8% of the total risk margin requirements for all positions carried in client accounts and 8% of the total risk margin requirements for all positions carried in non-client accounts (as defined in Reg. 1.17). | ||||||||||||||||||||||||||
Net capital and net capital requirements for Schwab and optionsXpress, Inc. at December 31, 2013, are as follows: | ||||||||||||||||||||||||||
Net Capital | Net Capital | |||||||||||||||||||||||||
% of | Minimum | 2% of | in Excess of | in Excess of 5% | ||||||||||||||||||||||
Aggregate | Net Capital | Aggregate | Required | of Aggregate | ||||||||||||||||||||||
Net Capital | Debit Balances | Required | Debit Balances | Net Capital | Debit Balances | |||||||||||||||||||||
Schwab | $ | 1,446 | 10 | % | $ | 0.250 | $ | 295 | $ | 1,151 | $ | 707 | ||||||||||||||
optionsXpress, Inc. | $ | 102 | 36 | % | $ | 1 | $ | 6 | $ | 96 | $ | 88 | ||||||||||||||
Schwab and optionsXpress, Inc. are also subject to Rule 15c3-3 under the Securities Exchange Act of 1934 and other applicable regulations, which require them to maintain cash or qualified securities in a segregated reserve account for the exclusive benefit of clients. In accordance with Rule 15c3-3, Schwab and optionsXpress, Inc. had portions of their cash and investments segregated for the exclusive benefit of clients at December 31, 2013. 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, 2013 for Schwab and optionsXpress, Inc. totaled $24.0 billion. On January 3, 2014, Schwab and optionsXpress, Inc. deposited a net amount of $965 million of cash into their segregated reserve bank accounts. Cash and investments required to be segregated and on deposit for regulatory purposes at December 31, 2012 for Schwab and optionsXpress, Inc. totaled $29.2 billion. On January 3, 2013, Schwab and optionsXpress, Inc. deposited a net amount of $1.2 billion of cash into their segregated reserve bank accounts. | ||||||||||||||||||||||||||
Segment_Information
Segment Information | 12 Months Ended | |||||||||||||||||||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||||||||||||||||||
Segment Information [Abstract] | ' | |||||||||||||||||||||||||||||||||||
Segment Information | ' | |||||||||||||||||||||||||||||||||||
23.Segment Information | ||||||||||||||||||||||||||||||||||||
The Company’s two reportable segments are Investor Services and Advisor Services. The Company structures its 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, retirement plan services, and corporate brokerage services. The Advisor Services segment provides custodial, trading, and support services to independent investment advisors, and retirement business services to independent retirement plan advisors and recordkeepers whose plan assets are held at Schwab Bank. Revenues and expenses are allocated to the Company’s two segments based on which segment services the client. | ||||||||||||||||||||||||||||||||||||
The accounting policies of the segments are the same as those described in note “2 – Summary of Significant Accounting Policies.” Financial information for the Company’s reportable segments is presented in the following table. For the computation of its segment information, the Company 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. | ||||||||||||||||||||||||||||||||||||
The Company evaluates the performance of its segments on a pre-tax basis, excluding extraordinary or significant non-recurring items and results of discontinued operations. Segment assets and liabilities are not used for evaluating segment performance or in deciding how to allocate resources to segments. However, capital expenditures are used in resource allocation and are therefore disclosed. There are no revenues from transactions between the segments. Capital expenditures are reported gross, and are not net of proceeds from the sale of fixed assets. | ||||||||||||||||||||||||||||||||||||
Financial information for the Company’s reportable segments is presented in the following table: | ||||||||||||||||||||||||||||||||||||
Investor Services | Advisor Services | Unallocated | Total | |||||||||||||||||||||||||||||||||
Year Ended December 31, | 2013 | 2012 | 2011 | 2013 | 2012 | 2011 | 2013 | 2012 | 2011 | 2013 | 2012 | 2011 | ||||||||||||||||||||||||
Net Revenues: | ||||||||||||||||||||||||||||||||||||
Asset management and | ||||||||||||||||||||||||||||||||||||
administration fees | $ | 1,627 | $ | 1,436 | $ | 1,357 | $ | 689 | $ | 607 | $ | 571 | $ | -1 | $ | - | $ | - | $ | 2,315 | $ | 2,043 | $ | 1,928 | ||||||||||||
Net interest revenue | 1,756 | 1,559 | 1,542 | 224 | 205 | 183 | - | - | - | 1,980 | 1,764 | 1,725 | ||||||||||||||||||||||||
Trading revenue | 621 | 612 | 667 | 292 | 255 | 260 | - | 1 | - | 913 | 868 | 927 | ||||||||||||||||||||||||
Other – net (1) | 178 | 123 | 98 | 57 | 62 | 62 | 1 | 71 | - | 236 | 256 | 160 | ||||||||||||||||||||||||
Provision for loan losses | 1 | -15 | -16 | - | -1 | -2 | - | - | - | 1 | -16 | -18 | ||||||||||||||||||||||||
Net impairment losses | ||||||||||||||||||||||||||||||||||||
on securities | -9 | -29 | -29 | -1 | -3 | -2 | - | - | - | -10 | -32 | -31 | ||||||||||||||||||||||||
Total net revenues | 4,174 | 3,686 | 3,619 | 1,261 | 1,125 | 1,072 | - | 72 | - | 5,435 | 4,883 | 4,691 | ||||||||||||||||||||||||
Expenses Excluding Interest | 2,899 | 2,693 | 2,569 | 831 | 739 | 731 | - | 1 | -1 | 3,730 | 3,433 | 3,299 | ||||||||||||||||||||||||
Income before taxes on income | $ | 1,275 | $ | 993 | $ | 1,050 | $ | 430 | $ | 386 | $ | 341 | $ | - | $ | 71 | $ | 1 | $ | 1,705 | $ | 1,450 | $ | 1,392 | ||||||||||||
Capital expenditures | $ | 190 | $ | 98 | $ | 134 | $ | 80 | $ | 40 | $ | 56 | $ | - | $ | - | $ | - | $ | 270 | $ | 138 | $ | 190 | ||||||||||||
Depreciation and amortization | $ | 155 | $ | 157 | $ | 122 | $ | 47 | $ | 39 | $ | 33 | $ | - | $ | - | $ | - | $ | 202 | $ | 196 | $ | 155 | ||||||||||||
-1 | Unallocated amount includes a non-recurring gain of $70 million relating to a confidential resolution of a vendor dispute in 2012. | |||||||||||||||||||||||||||||||||||
Fees received from Schwab’s proprietary mutual funds represented 9% of the Company’s net revenues in 2013 and 10% in both 2012 and 2011. Except for Schwab’s proprietary mutual funds, which are considered a single client for purposes of this computation, no single client accounted for more than 10% of the Company’s net revenues in 2013, 2012, or 2011. Substantially all of the Company’s revenues and assets are generated or located in the U.S. The percentage of Schwab’s total client accounts located in California was 23% at December 31, 2013, 2012, and 2011. | ||||||||||||||||||||||||||||||||||||
Business_Acquisitions
Business Acquisitions | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Business Acquisitions [Abstract] | ' | ||||||||
Business Acquisitions | ' | ||||||||
24.Business Acquisitions | |||||||||
optionsXpress Holdings, Inc. | |||||||||
On September 1, 2011, the Company acquired optionsXpress Holdings, Inc. (optionsXpress) for total consideration of $714 million. optionsXpress is an online brokerage firm primarily focused on equity option securities and futures. The optionsXpress® brokerage platform provides active investors and traders trading tools, analytics and education to execute a variety of investment strategies. The combination of optionsXpress and Schwab offers active investors an additional level of service and platform capabilities. | |||||||||
Under the terms of the merger agreement, optionsXpress stockholders received 1.02 shares of the Company’s common stock for each share of optionsXpress stock. As a result, the Company issued 59 million shares of the Company’s common stock valued at $710 million, based on the closing price of the Company’s common stock on September 1, 2011. The Company also assumed optionsXpress’ stock-based compensation awards valued at $4 million. | |||||||||
The results of optionsXpress’ operations have been included in the Company’s consolidated statement of income for the year ended December 31, 2013, 2012, and 2011, from the date of acquisition. optionsXpress’ net revenues were $142 million and $179 million in 2013 and 2012, respectively, and net income was $8 million and $6 million in 2013 and 2012, respectively. optionsXpress’ net revenues were $68 million and their net loss was not material for the period September 1, 2011 through December 31, 2011. | |||||||||
The Company recorded intangible assets of $285 million, which are subject to amortization and are being amortized over their estimated useful lives using accelerated and straight-line methods of amortization. The following table summarizes the estimated fair value and useful lives of the intangible assets. | |||||||||
Estimated | |||||||||
Estimated | Useful Life | ||||||||
September 1, 2011 | Fair Value | (In Years) | |||||||
Customer relationships | $ | 200 | 11 | ||||||
Technology | 70 | 9 | |||||||
Trade name | 15 | 9 | |||||||
Total intangible assets | $ | 285 | |||||||
Pro Forma Financial Information (Unaudited) | |||||||||
The following table presents unaudited pro forma financial information as if optionsXpress had been acquired prior to January 1, 2011. Pro forma net income for the year ended December 31, 2011, was adjusted to exclude $16 million, after tax, of acquisition related costs incurred by the Company in 2011. Additionally, pro forma net income below excludes $15 million, before tax, of acquisition related costs because these costs were incurred by optionsXpress prior to the acquisition date. Pro forma net income also reflects the impact of amortizing purchase accounting adjustments relating to intangible assets, net of tax, of $20 million, for the year ended December 31, 2011. | |||||||||
Year Ended December 31, | 2011 | ||||||||
Net revenues | $ | 4,857 | |||||||
Net income | $ | 896 | |||||||
Basic EPS | $ | 0.71 | |||||||
Diluted EPS | $ | 0.71 | |||||||
The unaudited pro forma financial information above is presented for illustrative purposes only and is not necessarily indicative of the results that actually would have occurred had the acquisition been completed prior to January 1, 2011, nor is it indicative of the results of operations for future periods. | |||||||||
Other Business Acquisition | |||||||||
On December 14, 2012, the Company acquired ThomasPartners, Inc., a growth and dividend income-focused asset management firm, for $85 million in cash. The Company recorded goodwill of $68 million and intangible assets of $32 million. The intangible assets primarily relate to customer relationships and are being amortized over 11 years. The goodwill was allocated to the Investor Services and Advisor Services segments in the amounts of $54 million and $14 million, respectively. | |||||||||
Subsequent_Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2013 | |
Subsequent Events [Abstract] | ' |
Subsequent Events | ' |
25.Subsequent Events | |
The Company has evaluated the impact of events that have occurred subsequent to December 31, 2013, through the date the consolidated financial statements were filed with the SEC. Based on this evaluation, other than as recorded or disclosed within these consolidated financial statements and related notes, the Company has determined none of these events were required to be recognized or disclosed. | |
The_Charles_Schwab_Corporation
The Charles Schwab Corporation - Parent Company Only Financial Statements | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
The Charles Schwab Corporation – Parent Company Only Financial Statements [Abstract] | ' | ||||||||||||
The Charles Schwab Corporation - Parent Company Only Financial Statements | ' | ||||||||||||
26.The Charles Schwab Corporation – Parent Company Only Financial Statements | |||||||||||||
Condensed Statements of Income | |||||||||||||
Year Ended December 31, | 2013 | 2012 | 2011 | ||||||||||
Interest revenue | $ | 4 | $ | 6 | $ | 4 | |||||||
Interest expense | -65 | -97 | -103 | ||||||||||
Net interest revenue | -61 | -91 | -99 | ||||||||||
Other revenue – net | - | -30 | 8 | ||||||||||
Expenses excluding interest | -28 | -23 | -30 | ||||||||||
Loss before income tax benefit and equity in net income of subsidiaries | -89 | -144 | -121 | ||||||||||
Income tax benefit | 38 | 58 | 43 | ||||||||||
Loss before equity in net income of subsidiaries | -51 | -86 | -78 | ||||||||||
Equity in net income of subsidiaries: | |||||||||||||
Equity in undistributed net income of subsidiaries | 830 | 662 | 600 | ||||||||||
Dividends from bank subsidiary | 163 | 50 | 150 | ||||||||||
Dividends from non-bank subsidiaries | 129 | 302 | 192 | ||||||||||
Net Income | 1,071 | 928 | 864 | ||||||||||
Preferred stock dividends | 61 | 45 | - | ||||||||||
Net Income Available to Common Stockholders | $ | 1,010 | $ | 883 | $ | 864 | |||||||
Condensed Balance Sheets | |||||||||||||
December 31, | 2013 | 2012 | |||||||||||
Assets | |||||||||||||
Cash and cash equivalents | $ | 700 | $ | 1,339 | |||||||||
Receivables from subsidiaries | 162 | 80 | |||||||||||
Other securities owned – at fair value | 80 | 74 | |||||||||||
Loans to non-bank subsidiaries | 980 | 404 | |||||||||||
Investment in non-bank subsidiaries | 3,828 | 3,615 | |||||||||||
Investment in bank subsidiary | 6,576 | 6,022 | |||||||||||
Other assets | 65 | 88 | |||||||||||
Total assets | $ | 12,391 | $ | 11,622 | |||||||||
Liabilities and Stockholders’ Equity | |||||||||||||
Accrued expenses and other liabilities | $ | 187 | $ | 482 | |||||||||
Payables to subsidiaries | 9 | 14 | |||||||||||
Long-term debt | 1,814 | 1,537 | |||||||||||
Total liabilities | 2,010 | 2,033 | |||||||||||
Stockholders’ equity | 10,381 | 9,589 | |||||||||||
Total liabilities and stockholders’ equity | $ | 12,391 | $ | 11,622 | |||||||||
Condensed Statements of Cash Flows | |||||||||||||
Year Ended December 31, | 2013 | 2012 | 2011 | ||||||||||
Cash Flows from Operating Activities | |||||||||||||
Net income | $ | 1,071 | $ | 928 | $ | 864 | |||||||
Adjustments to reconcile net income to net cash provided by | |||||||||||||
operating activities: | |||||||||||||
Equity in undistributed earnings of subsidiaries | -830 | -662 | -591 | ||||||||||
Provision for deferred income taxes | -11 | 9 | 3 | ||||||||||
Other | -4 | 39 | 1 | ||||||||||
Net change in: | |||||||||||||
Other securities owned | -5 | 3 | 6 | ||||||||||
Other assets | 29 | -21 | 26 | ||||||||||
Accrued expenses and other liabilities | 13 | -5 | -76 | ||||||||||
Net cash provided by operating activities | 263 | 291 | 233 | ||||||||||
Cash Flows from Investing Activities | |||||||||||||
Due from subsidiaries – net | -546 | 43 | 24 | ||||||||||
Increase in investments in subsidiaries | -225 | -307 | -366 | ||||||||||
Other investing activities | -1 | - | 8 | ||||||||||
Net cash used for investing activities | -772 | -264 | -334 | ||||||||||
Cash Flows from Financing Activities | |||||||||||||
Issuance of commercial paper | - | 300 | - | ||||||||||
Repayment of commercial paper | -300 | - | - | ||||||||||
Issuance of long-term debt | 275 | 350 | - | ||||||||||
Repayment of long-term debt | - | -727 | - | ||||||||||
Premium paid on debt exchange | - | -19 | - | ||||||||||
Net proceeds from preferred stock offering | - | 863 | - | ||||||||||
Dividends paid | -368 | -337 | -295 | ||||||||||
Proceeds from stock options exercised and other | 258 | 35 | 96 | ||||||||||
Other financing activities | 5 | -5 | 3 | ||||||||||
Net cash (used for) provided by financing activities | -130 | 460 | -196 | ||||||||||
(Decrease) Increase in Cash and Cash Equivalents | -639 | 487 | -297 | ||||||||||
Cash and Cash Equivalents at Beginning of Year | 1,339 | 852 | 1,149 | ||||||||||
Cash and Cash Equivalents at End of Year | $ | 700 | $ | 1,339 | $ | 852 | |||||||
Quarterly_Financial_Informatio
Quarterly Financial Information | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Quarterly Financial Information [Abstract] | ' | ||||||||||||||||
Quarterly Financial Information | ' | ||||||||||||||||
27.Quarterly Financial Information (Unaudited) | |||||||||||||||||
Fourth | Third | Second | First | ||||||||||||||
Quarter | Quarter | Quarter | Quarter | ||||||||||||||
Year Ended December 31, 2013: | |||||||||||||||||
Net Revenues | $ | 1,435 | $ | 1,373 | $ | 1,337 | $ | 1,290 | |||||||||
Expenses Excluding Interest | $ | 937 | $ | 909 | $ | 925 | $ | 959 | |||||||||
Net Income | $ | 319 | $ | 290 | $ | 256 | $ | 206 | |||||||||
Net Income Available to Common Stockholders | $ | 297 | $ | 282 | $ | 233 | $ | 198 | |||||||||
Weighted Average Common Shares Outstanding – Diluted | 1,304 | 1,296 | 1,288 | 1,282 | |||||||||||||
Basic Earnings Per Common Share | $ | .23 | $ | .22 | $ | .18 | $ | .15 | |||||||||
Diluted Earnings Per Common Share | $ | .23 | $ | .22 | $ | .18 | $ | .15 | |||||||||
Dividends Declared Per Common Share | $ | .06 | $ | .06 | $ | .06 | $ | .06 | |||||||||
Range of Common Stock Price Per Share: | |||||||||||||||||
High | $ | 26.00 | $ | 22.69 | $ | 21.23 | $ | 18.11 | |||||||||
Low | $ | 20.57 | $ | 20.74 | $ | 16.21 | $ | 15.05 | |||||||||
Range of Price/Earnings Ratio (1): | |||||||||||||||||
High | 33 | 32 | 32 | 26 | |||||||||||||
Low | 26 | 30 | 24 | 22 | |||||||||||||
Year Ended December 31, 2012: | |||||||||||||||||
Net Revenues | $ | 1,215 | $ | 1,196 | $ | 1,283 | $ | 1,189 | |||||||||
Expenses Excluding Interest | $ | 871 | $ | 835 | $ | 851 | $ | 876 | |||||||||
Net Income | $ | 211 | $ | 247 | $ | 275 | $ | 195 | |||||||||
Net Income Available to Common Stockholders | $ | 189 | $ | 238 | $ | 261 | $ | 195 | |||||||||
Weighted Average Common Shares Outstanding – Diluted | 1,278 | 1,275 | 1,274 | 1,273 | |||||||||||||
Basic Earnings Per Common Share | $ | .15 | $ | .19 | $ | .20 | $ | .15 | |||||||||
Diluted Earnings Per Common Share | $ | .15 | $ | .19 | $ | .20 | $ | .15 | |||||||||
Dividends Declared Per Common Share | $ | .06 | $ | .06 | $ | .06 | $ | .06 | |||||||||
Range of Common Stock Price Per Share: | |||||||||||||||||
High | $ | 14.47 | $ | 14.43 | $ | 14.76 | $ | 15.38 | |||||||||
Low | $ | 12.50 | $ | 12.14 | $ | 11.83 | $ | 11.61 | |||||||||
Range of Price/Earnings Ratio (1): | |||||||||||||||||
High | 21 | 22 | 22 | 23 | |||||||||||||
Low | 18 | 18 | 18 | 18 | |||||||||||||
-1 | Price/earnings ratio is computed by dividing the high and low market prices by diluted earnings per common share for the preceding 12-month period ending on the last day of the quarter presented. | ||||||||||||||||
Valuation_and_Qualifying_Accou
Valuation and Qualifying Accounts | 12 Months Ended | |||||||||||||||
Dec. 31, 2013 | ||||||||||||||||
Valuation And Qualifying Accounts [Abstract] | ' | |||||||||||||||
Valuation and Qualifying Accounts | ' | |||||||||||||||
SCHEDULE II | ||||||||||||||||
Valuation and Qualifying Accounts | ||||||||||||||||
(In millions) | ||||||||||||||||
Balance at | Additions | Balance at | ||||||||||||||
Beginning | Charged | End | ||||||||||||||
Description | of Year | to Expense | Other (1) | Written off | of Year | |||||||||||
For the year ended December 31, 2013: | ||||||||||||||||
Allowance for doubtful accounts of | ||||||||||||||||
brokerage clients (2) | $ | 1 | $ | 2 | $ | 1 | $ | -4 | $ | - | ||||||
For the year ended December 31, 2012: | ||||||||||||||||
Allowance for doubtful accounts of | ||||||||||||||||
brokerage clients (2) | $ | 2 | $ | 4 | $ | - | $ | -5 | $ | 1 | ||||||
For the year ended December 31, 2011: | ||||||||||||||||
Allowance for doubtful accounts of | ||||||||||||||||
brokerage clients (2) | $ | 1 | $ | 6 | $ | 3 | $ | -8 | $ | 2 | ||||||
Includes collections of previously written-off accounts. | ||||||||||||||||
-1 | ||||||||||||||||
-2 | Excludes banking-related valuation and qualifying accounts. See “Item 8 – Financial Statements and Supplementary Data – Notes to Consolidated Financial Statements – 6. Loans to Banking Clients and Related Allowance for Loan Losses.” | |||||||||||||||
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policy) | 12 Months Ended | |||
Dec. 31, 2013 | ||||
Summary of Significant Accounting Policies [Abstract] | ' | |||
Asset management and administration fees | ' | |||
Asset management and administration fees | ||||
Asset management and administration fees include mutual fund service fees and fees for other asset-based financial services provided to individual and institutional clients, and are recognized as revenue over the period that the related service is provided, based upon average asset balances. The Company’s policy is to recognize revenue subject to refunds because management can estimate refunds based on Company specific experience. Actual refunds were not material as of December 31, 2013. The Company earns mutual fund service fees for shareholder services, administration, and investment management provided to its proprietary funds, and recordkeeping and shareholder services provided to third-party funds. These fees are based upon the daily balances of client assets invested in these funds. The Company also earns asset management fees for advice solutions, which include advisory and managed account services that are based on the daily balances of client assets subject to the specific fee for service. The fair values of client assets included in proprietary and third-party mutual funds are based on quoted market prices and other observable market data. Other asset management and administration fees include various asset based fees, such as third-party mutual fund service fees, trust fees, 401(k) record keeping fees, and mutual fund clearing and other service fees. | ||||
In 2013, 2012, and 2011, the Company waived a portion of its asset management fees earned from certain Schwab-sponsored money market mutual funds in order to provide a positive return to clients. Under agreements with these funds, the Company may recover such fee waivers depending on the future performance of the funds and approval by the boards of the respective funds until the third anniversary of the end of the fiscal year in which such fee waiver occurs, subject to certain limitations. Recoveries of previously-waived asset management fees are recognized as revenue when substantially all uncertainties about timing and amount of realization are resolved. | ||||
Interest revenue | ' | |||
Interest revenue | ||||
Interest revenue represents interest earned on cash and cash equivalents, cash and investments segregated, receivables from brokers, dealers, and clearing organizations, receivables from brokerage clients, other securities owned, securities available for sale, securities held to maturity, and loans to banking clients. Interest revenue is recognized in the period earned based upon average or daily asset balances and respective interest rates. | ||||
Trading revenue | ' | |||
Trading revenue | ||||
Trading revenue includes commission and principal transaction revenues. Clients’ securities transactions are recorded on the date that they settle, while the related commission revenues and expenses are recorded on the date that the trade occurs. Principal transaction revenue is primarily comprised of revenue from trading activity in client fixed income securities, which is recorded on a trade date basis. To accommodate clients’ fixed income trading activity, the Company maintains positions in fixed income securities, including state and municipal debt obligations, U.S. Government, corporate debt and other securities. The difference between the price at which the Company buys and sells securities to and from its clients and other broker-dealers is recognized as principal transaction revenue. Principal transaction revenue also includes adjustments to the fair value of these securities positions. | ||||
Cash and cash equivalents | ' | |||
Cash and cash equivalents | ||||
The Company considers all highly liquid investments with original maturities of three months or less that are not segregated and on deposit for regulatory purposes to be cash equivalents. Cash and cash equivalents include money market funds, deposits with banks, certificates of deposit, commercial paper, and treasury securities. Cash and cash equivalents also include balances that Schwab Bank maintains at the Federal Reserve Bank. | ||||
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 investing transactions that are recorded at their contractual amounts plus accrued interest. The Company obtains control of collateral with a market value equal to or in excess of the principal amount loaned and accrued interest under resale agreements. Collateral is valued daily by the Company, with additional collateral obtained to ensure full collateralization. Cash and investments segregated also include certificates of deposit and U.S. Government securities. Certificates of deposit and U.S. Government securities are recorded at fair value. Pursuant to applicable regulations, client cash balances that are not used for margin lending are generally segregated into investment accounts that are maintained for the exclusive benefit of clients. | ||||
Receivables from brokerage clients | ' | |||
Receivables from brokerage clients | ||||
Receivables from brokerage clients include margin loans to clients and are recorded net of an allowance for doubtful accounts. Receivables from brokerage clients that remain unsecured or partially secured for more than 30 days are fully reserved. | ||||
Other securities owned | ' | |||
Other securities owned | ||||
Other securities owned are recorded at fair value based on quoted market prices or other observable market data. Unrealized gains and losses are included in trading revenue. | ||||
Securities available for sale and securities held to maturity | ' | |||
Securities available for sale and securities held to maturity | ||||
Securities available for sale are recorded at fair value and unrealized gains and losses are reported, net of taxes, in accumulated other comprehensive income (loss) included in stockholders’ equity. Securities held to maturity 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 securities available for sale are determined on a specific identification basis and are included in other revenue – net. | ||||
Management evaluates whether securities available for sale and securities held to maturity are other-than-temporarily impaired (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 the amortized cost and the then-current 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 estimated credit loss, and is measured by the difference between the present value of expected cash flows and the amortized cost of the security. Management utilizes cash flow models to estimate the expected future cash flow from the securities to estimate the credit loss. Expected cash flows are discounted using the security’s effective interest rate. | ||||
The evaluation of whether the Company expects to recover the amortized cost of a security is inherently judgmental. The evaluation includes the assessment of several bond performance indicators including: the portion of the underlying loans that are delinquent (30 days, 60 days, 90+ days), in bankruptcy, in foreclosure or converted to real estate owned; the actual amount of loss incurred on the underlying loans in which the property has been foreclosed and sold; the amount of credit support provided by the structure of the security available to absorb credit losses on the underlying loans; the current price and magnitude of the unrealized loss; and whether the Company has received all scheduled principal and interest payments. Management uses cash flow models to further assess the likelihood of other-than-temporary impairment for the Company’s non-agency residential mortgage-backed securities. To develop the cash flow models, the Company uses forecasted loss severity, prepayment speeds (i.e. the rate at which the principal on underlying loans are paid down), and default rates over the securities’ expected remaining maturities. | ||||
Securities borrowed and securities loaned | ' | |||
Securities borrowed and securities loaned | ||||
Securities borrowed require the Company to deliver cash to the lender in exchange for securities and are included in receivables from brokers, dealers, and clearing organizations. For securities loaned, the Company receives collateral in the form of cash in an amount equal to or greater than the market value of securities loaned. Securities loaned are included in payables to brokers, dealers, and clearing organizations. The Company monitors the market value of securities borrowed and loaned, with additional collateral obtained or refunded to ensure full collateralization. Fees received or paid are recorded in interest revenue or interest expense. | ||||
Loans to banking clients and related allowance for loan losses | ' | |||
Loans to banking clients and related allowance for loan losses | ||||
Loans to banking clients are recorded at their contractual principal amounts and include unamortized direct origination costs or net purchase premiums. Additionally, loans are recorded net of an allowance for loan losses. The Company’s loan portfolio includes four loan segments: residential real estate mortgages, home equity lines of credit (HELOC), personal loans secured by securities and other loans. Residential real estate mortgages include two loan classes: first mortgages and purchased first mortgages. Loan segments are defined as the level to which the Company disaggregates its loan portfolio when developing and documenting a methodology for determining the allowance for loan losses. A loan class is defined as a group of loans within a loan segment that has homogeneous risk characteristics. | ||||
The Company records an allowance for loan losses through a charge to earnings based on management’s estimate of probable losses in the existing portfolio. Management reviews 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, loan-to-value (LTV) ratios, past loss experience, estimates of future loss severities, borrower credit risk measured by Fair Isaac Corporation (FICO) scores, and the adequacy of collateral. The methodology also evaluates concentrations in the loan segments, including loan products, 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 of each loan, the term and structure of each loan, current key interest rates including U.S. Treasury and London Interbank Offered Rate (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 the Company’s historical loss experience adjusted for current trends and market information. Further, the delinquency roll rates within the loan-level simulation discussed above are calibrated to match a moving average of the delinquency roll rates actually experienced in the respective first lien residential real estate mortgage loan (First Mortgage) and home equity line of credit (HELOC) portfolios. Loss severity estimates are based on the Company’s 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. As a result, the current state of house prices, including the decrease in general house prices experienced over the last several years, as well as the current state of delinquencies unique to the Company’s First Mortgage and HELOC portfolios, are considered in the allowance for loan loss methodology. | ||||
This methodology results in loss factors that are applied to the outstanding balances to determine the allowance for loan loss for each loan segment. | ||||
The Company considers loan modifications in which it makes an economic concession to a borrower experiencing financial difficulty to be a troubled debt restructuring. | ||||
Nonaccrual loans | ' | |||
Nonaccrual loans | ||||
Residential real estate mortgages, HELOC, personal, 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. For the portion of the HELOC portfolio for which the Company is able to track the delinquency status on the associated first lien loan, the Company places a HELOC on non-accrual status if the associated first mortgage 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 thereafter, 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. | ||||
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. The Company’s charge-off policy for residential real estate first mortgages and HELOC loans is to assess the value of the property when the loan has been delinquent for 180 days or has been discharged in bankruptcy proceedings, regardless of whether or not the property is in foreclosure, and charge-off the amount of the loan balance in excess of the estimated current value of the underlying property less estimated costs to sell. | ||||
Equipment, office facilities, and property | ' | |||
Equipment, office facilities, and property | ||||
Equipment, office facilities, and property are recorded at cost net of accumulated depreciation and amortization, except for land, which is recorded at cost. Equipment and office facilities are depreciated on a straight-line basis over an estimated useful life of five to ten years. Buildings are depreciated on a straight-line basis over 20 to 40 years. Leasehold improvements are amortized on a straight-line basis over the shorter of the estimated useful life of the asset or the term of the lease. Software and certain costs incurred for purchasing or developing software for internal use are amortized on a straight-line basis over an estimated useful life of three or five 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 | ||||
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. The Company’s annual impairment testing date is April 1st. The Company 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 may consider macroeconomic and other industry-specific factors, such as trends in short-term and long-term interest rates and the ability to access capital, or 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, and a market capitalization analysis. | ||||
Intangible assets | ' | |||
Intangible assets | ||||
Intangible assets are amortized over their useful lives in a manner that best reflects their economic benefit. Intangible assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable. The Company does not have any indefinite-lived intangible assets. | ||||
Guarantees and indemnifications | ' | |||
Guarantees and indemnifications | ||||
The Company 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 the obligations relating to standby letter of credit agreements (LOCs) are estimated based on fees charged to enter into similar agreements, considering the creditworthiness of the counterparties. The fair values of the obligations relating to other guarantees are estimated based on transactions for similar guarantees or expected present value measures. | ||||
Income taxes | ' | |||
Income taxes | ||||
The Company 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. The Company’s unrecognized tax benefits, which are included in accrued expenses and other liabilities, represent the difference between positions taken on tax return filings and estimated potential tax settlement outcomes. Interest and penalties relating to unrecognized tax benefits are recorded in income tax expense. | ||||
Stock-based compensation | ' | |||
Stock-based compensation | ||||
Stock-based compensation includes employee and board of director stock options, restricted stock units, and restricted stock awards. The Company measures compensation expense for these share-based payment arrangements based on their estimated fair values as of the awards’ grant date. The fair value of the share-based award is recognized over the vesting period as stock-based compensation. Stock-based compensation expense is based on awards expected to vest and therefore is reduced for estimated forfeitures. Forfeitures are estimated at the time of grant based on the Company’s historical forfeiture experience and revised in subsequent periods if actual forfeitures differ from those estimates. The excess tax benefits from the exercise of stock options and the vesting of restricted stock awards are recorded in additional paid-in capital. | ||||
Fair values of assets and liabilities | ' | |||
Fair values of assets and liabilities | ||||
Fair value is defined as the price that would be received to sell an asset or the price paid to transfer a liability in an orderly transaction between market participants at the measurement date. Fair value measurement accounting guidance describes the fair value hierarchy for disclosing assets and liabilities measured at fair value based on the inputs used to value them. The fair value hierarchy maximizes the use of observable inputs and minimizes the use of unobservable inputs. Observable inputs are based on market pricing data obtained from sources independent of the Company. A quoted price in an active market provides the most reliable evidence of fair value and is generally used to measure fair value whenever available. Unobservable inputs reflect management’s judgment about the assumptions market participants would use in pricing the asset or liability. Where inputs used to measure fair value of an asset or liability are from different levels of the hierarchy, the asset or liability is categorized based on the lowest level input that is significant to the fair value measurement in its entirety. Assessing the significance of a particular input requires judgment. The fair value hierarchy includes three levels based on the objectivity of the inputs as follows: | ||||
· | Level 1 inputs are quoted prices in active markets as of the measurement date for identical assets or liabilities that the Company has the ability to access. | |||
· | Level 2 inputs are inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. Level 2 inputs include quoted prices for similar assets and liabilities in active markets, and inputs other than quoted prices that are observable for the asset or liability, such as interest rates, benchmark yields, issuer spreads, new issue data, and collateral performance. | |||
· | Level 3 inputs are unobservable inputs for the asset or liability, and include situations where there is little, if any, market activity for the asset or liability. | |||
Assets and liabilities recorded at fair value | ||||
The Company uses the market and income approaches 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. The Company generally obtains prices from at least three independent pricing sources for assets recorded at fair value and may obtain up to five prices on assets with higher risk of limited observable information, such as non-agency residential mortgage-backed securities. The Company’s 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. The Company compares the prices obtained from its 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. The Company does not adjust the prices received from independent third-party pricing services unless such prices are inconsistent with the definition of fair value and result in a material difference in the recorded amounts. | ||||
Financial instruments not recorded at fair value | ||||
Descriptions of the valuation methodologies and assumptions used to estimate the fair value of financial instruments not recorded at fair value are described below. The Company’s financial instruments not recorded at fair value but for which fair value can be approximated and disclosed include: | ||||
· | Cash and cash equivalents are short-term in nature and accordingly are recorded at amounts that approximate fair value. | |||
· | Cash and investments segregated and on deposit for regulatory purposes include cash and securities purchased under resale agreements. Securities purchased under resale agreements are short-term in nature and are backed by collateral that both exceeds the carrying value of the resale agreement and is highly liquid in nature. Accordingly, the carrying value approximates fair value. | |||
· | Receivables from/payables to brokers, dealers, and clearing organizations are recorded at contractual amounts and historically have been settled at those values and are short-term in nature, and therefore approximate fair value. | |||
· | Receivables from/payables to brokerage clients — net are recorded at contractual amounts and historically have been settled at those values and are short-term in nature, and therefore approximate fair value. | |||
· | Securities held to maturity – The fair values of securities held to maturity are obtained using an independent third-party pricing service similar to investment assets recorded at fair value as discussed above. | |||
· | Loans to banking clients – The fair values of the Company’s loans to banking clients are estimated based on prices of mortgage-backed securities collateralized by similar types of loans. | |||
· | Financial instruments included in other assets primarily consist of cost method investments and Federal Home Loan Bank (FHLB) stock, whose carrying values approximate their fair values. FHLB stock is recorded at par, which approximates fair value. | |||
· | Deposits from banking clients have no stated maturity and are recorded at the amount payable on demand as of the balance sheet date. The Company considers the carrying value of these deposits to approximate their fair values. | |||
· | Financial instruments included in accrued expenses and other liabilities consist of commercial paper, drafts payable and certain amounts due under contractual obligations which are short-term in nature and accordingly are recorded at amounts that approximate fair value. | |||
· | Long-term debt – Except for the finance lease obligation, the fair values of long-term debt are estimated using indicative, non-binding quotes from independent brokers. The Company validates indicative prices for its debt through comparison to other independent non-binding quotes. The finance lease obligation is recorded at carrying value, which approximates fair value. | |||
· | Firm commitments to extend credit – The Company extends credit to banking clients through HELOC and personal loans secured by securities. The Company considers the fair value of these unused commitments to be not material because the interest rates earned on these balances are based on floating interest rates that reset monthly. The Company does not charge a fee to maintain a HELOC or personal loan. | |||
Other_Securities_Owned_Tables
Other Securities Owned (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Other Securities Owned [Abstract] | ' | ||||||||
Summary of Other Securities Owned | ' | ||||||||
December 31, | 2013 | 2012 | |||||||
Schwab Funds® money market funds | $ | 261 | $ | 329 | |||||
Equity and bond mutual funds | 208 | 217 | |||||||
State and municipal debt obligations | 32 | 48 | |||||||
Equity, U.S. Government and corporate debt, and other securities | 16 | 42 | |||||||
Total other securities owned | $ | 517 | $ | 636 | |||||
Securities_Available_for_Sale_1
Securities Available for Sale and Securities Held to Maturity (Tables) | 12 Months Ended | ||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||
Securities Available for Sale and Securities Held to Maturity [Abstract] | ' | ||||||||||||||||||
Amortized Cost, Gross Unrealized Gains and Losses, and Fair Value of Securities Available for Sale and Securities Held to Maturity | ' | ||||||||||||||||||
Gross | Gross | ||||||||||||||||||
Amortized | Unrealized | Unrealized | Fair | ||||||||||||||||
31-Dec-13 | Cost | Gains | Losses | Value | |||||||||||||||
Securities available for sale: | |||||||||||||||||||
U.S. agency mortgage-backed securities | $ | 18,554 | $ | 140 | $ | 49 | $ | 18,645 | |||||||||||
Asset-backed securities | 15,201 | 42 | 37 | 15,206 | |||||||||||||||
Corporate debt securities | 8,973 | 49 | 15 | 9,007 | |||||||||||||||
U.S. agency notes | 4,239 | 1 | 104 | 4,136 | |||||||||||||||
Certificates of deposit | 3,650 | 4 | 2 | 3,652 | |||||||||||||||
Non-agency residential mortgage-backed securities | 616 | 11 | 34 | 593 | |||||||||||||||
Non-agency commercial mortgage-backed securities | 271 | 8 | - | 279 | |||||||||||||||
Other securities | 100 | - | - | 100 | |||||||||||||||
Total securities available for sale | $ | 51,604 | $ | 255 | $ | 241 | $ | 51,618 | |||||||||||
Securities held to maturity: | |||||||||||||||||||
U.S. agency mortgage-backed securities | $ | 29,260 | $ | 161 | $ | 921 | $ | 28,500 | |||||||||||
Non-agency commercial mortgage-backed securities | 958 | - | 68 | 890 | |||||||||||||||
Other securities | 100 | - | - | 100 | |||||||||||||||
Total securities held to maturity | $ | 30,318 | $ | 161 | $ | 989 | $ | 29,490 | |||||||||||
Gross | Gross | ||||||||||||||||||
Amortized | Unrealized | Unrealized | Fair | ||||||||||||||||
31-Dec-12 | Cost | Gains | Losses | Value | |||||||||||||||
Securities available for sale: | |||||||||||||||||||
U.S. agency mortgage-backed securities | $ | 20,080 | $ | 396 | $ | - | $ | 20,476 | |||||||||||
Asset-backed securities | 8,104 | 62 | 2 | 8,164 | |||||||||||||||
Corporate debt securities | 6,197 | 61 | 2 | 6,256 | |||||||||||||||
Certificates of deposit | 6,150 | 12 | 1 | 6,161 | |||||||||||||||
U.S. agency notes | 3,465 | 2 | 3 | 3,464 | |||||||||||||||
Non-agency residential mortgage-backed securities | 796 | 2 | 65 | 733 | |||||||||||||||
Commercial paper | 574 | - | - | 574 | |||||||||||||||
Other securities | 278 | 17 | - | 295 | |||||||||||||||
Total securities available for sale | $ | 45,644 | $ | 552 | $ | 73 | $ | 46,123 | |||||||||||
Securities held to maturity: | |||||||||||||||||||
U.S. agency mortgage-backed securities | $ | 17,750 | $ | 558 | $ | 19 | $ | 18,289 | |||||||||||
Other securities | 444 | - | 1 | 443 | |||||||||||||||
Total securities held to maturity | $ | 18,194 | $ | 558 | $ | 20 | $ | 18,732 | |||||||||||
Securities with Unrealized Losses, Aggregated by Category and Period of Continuous Unrealized Loss | ' | ||||||||||||||||||
Less than | 12 months | ||||||||||||||||||
12 months | or longer | Total | |||||||||||||||||
Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | ||||||||||||||
31-Dec-13 | Value | Losses | Value | Losses | Value | Losses | |||||||||||||
Securities available for sale: | |||||||||||||||||||
U.S agency mortgage-backed securities | $ | 5,044 | $ | 47 | $ | 93 | $ | 2 | $ | 5,137 | $ | 49 | |||||||
Asset-backed securities | 6,391 | 33 | 591 | 4 | 6,982 | 37 | |||||||||||||
Corporate debt securities | 1,802 | 14 | 499 | 1 | 2,301 | 15 | |||||||||||||
U.S. agency notes | 3,636 | 104 | - | - | 3,636 | 104 | |||||||||||||
Certificates of deposit | - | - | 299 | 2 | 299 | 2 | |||||||||||||
Non-agency residential mortgage-backed | |||||||||||||||||||
securities | 89 | 2 | 374 | 32 | 463 | 34 | |||||||||||||
Total | $ | 16,962 | $ | 200 | $ | 1,856 | $ | 41 | $ | 18,818 | $ | 241 | |||||||
Securities held to maturity: | |||||||||||||||||||
U.S. agency mortgage-backed securities | $ | 19,175 | $ | 698 | $ | 2,345 | $ | 223 | $ | 21,520 | $ | 921 | |||||||
Non-agency commercial mortgage-backed | |||||||||||||||||||
securities | 630 | 43 | 260 | 25 | 890 | 68 | |||||||||||||
Total | $ | 19,805 | $ | 741 | $ | 2,605 | $ | 248 | $ | 22,410 | $ | 989 | |||||||
Total securities with unrealized losses (1) | $ | 36,767 | $ | 941 | $ | 4,461 | $ | 289 | $ | 41,228 | $ | 1,230 | |||||||
-1 | The number of investment positions with unrealized losses totaled 273 for securities available for sale and 193 for securities held to maturity. | ||||||||||||||||||
Less than | 12 months | ||||||||||||||||||
12 months | or longer | Total | |||||||||||||||||
Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | ||||||||||||||
31-Dec-12 | Value | Losses | Value | Losses | Value | Losses | |||||||||||||
Securities available for sale: | |||||||||||||||||||
Asset-backed securities | $ | - | $ | - | $ | 801 | $ | 2 | $ | 801 | $ | 2 | |||||||
Corporate debt securities | 878 | 2 | - | - | 878 | 2 | |||||||||||||
Certificates of deposit | 599 | 1 | - | - | 599 | 1 | |||||||||||||
U.S. agency notes | 2,102 | 3 | - | - | 2,102 | 3 | |||||||||||||
Non-agency residential mortgage-backed | |||||||||||||||||||
securities | 46 | 1 | 549 | 64 | 595 | 65 | |||||||||||||
Total | $ | 3,625 | $ | 7 | $ | 1,350 | $ | 66 | $ | 4,975 | $ | 73 | |||||||
Securities held to maturity: | |||||||||||||||||||
U.S. agency mortgage-backed securities | $ | 2,680 | $ | 19 | $ | - | $ | - | $ | 2,680 | $ | 19 | |||||||
Other securities | 240 | 1 | - | - | 240 | 1 | |||||||||||||
Total | $ | 2,920 | $ | 20 | $ | - | $ | - | $ | 2,920 | $ | 20 | |||||||
Total securities with unrealized losses (1) | $ | 6,545 | $ | 27 | $ | 1,350 | $ | 66 | $ | 7,895 | $ | 93 | |||||||
-1 | The number of investment positions with unrealized losses totaled 139 for securities available for sale and 24 for securities held to maturity. | ||||||||||||||||||
Rollforward Amount of Credit Losses Recognized in Earnings for OTTI Securities for Portion of Impairment Recognized in or Reclassified From Other Comprehensive (Loss) Income | ' | ||||||||||||||||||
Year Ended December 31, | 2013 | 2012 | 2011 | ||||||||||||||||
Balance at beginning of year | $ | 159 | $ | 127 | $ | 96 | |||||||||||||
Credit losses recognized into current year earnings on debt securities for | |||||||||||||||||||
which an other-than-temporary impairment was not previously recognized | 1 | 6 | 6 | ||||||||||||||||
Credit losses recognized into current year earnings on debt securities for | |||||||||||||||||||
which an other-than-temporary impairment was previously recognized | 9 | 26 | 25 | ||||||||||||||||
Balance at end of year | $ | 169 | $ | 159 | $ | 127 | |||||||||||||
Maturities of Securities Available for Sale and Securities Held to Maturity | ' | ||||||||||||||||||
After 1 year | After 5 years | ||||||||||||||||||
Within | through | through | After | ||||||||||||||||
1 year | 5 years | 10 years | 10 years | Total | |||||||||||||||
Securities available for sale: | |||||||||||||||||||
U.S. agency mortgage-backed securities (1) | $ | - | $ | 508 | $ | 4,458 | $ | 13,679 | $ | 18,645 | |||||||||
Asset-backed securities | - | 1,219 | 3,284 | 10,703 | 15,206 | ||||||||||||||
Corporate debt securities | 1,348 | 7,554 | 105 | - | 9,007 | ||||||||||||||
U.S. agency notes | - | 3,896 | 240 | - | 4,136 | ||||||||||||||
Certificates of deposit | 1,826 | 1,826 | - | - | 3,652 | ||||||||||||||
Non-agency residential mortgage-backed | |||||||||||||||||||
securities (1) | - | 4 | - | 589 | 593 | ||||||||||||||
Non-agency commercial mortgage-backed | |||||||||||||||||||
securities (1) | - | - | - | 279 | 279 | ||||||||||||||
Other securities | 100 | - | - | - | 100 | ||||||||||||||
Total fair value | $ | 3,274 | $ | 15,007 | $ | 8,087 | $ | 25,250 | $ | 51,618 | |||||||||
Total amortized cost | $ | 3,270 | $ | 15,062 | $ | 8,041 | $ | 25,231 | $ | 51,604 | |||||||||
Securities held to maturity: | |||||||||||||||||||
U.S. agency mortgage-backed securities (1) | $ | - | $ | 555 | $ | 11,985 | $ | 15,960 | $ | 28,500 | |||||||||
Non-agency commercial mortgage-backed | |||||||||||||||||||
securities (1) | - | - | 337 | 553 | 890 | ||||||||||||||
Other securities | 100 | - | - | - | 100 | ||||||||||||||
Total fair value | $ | 100 | $ | 555 | $ | 12,322 | $ | 16,513 | $ | 29,490 | |||||||||
Total amortized cost | $ | 100 | $ | 550 | $ | 12,894 | $ | 16,774 | $ | 30,318 | |||||||||
-1 | Mortgage-backed securities have been allocated to maturity groupings based on final contractual maturities. Actual maturities will differ from final contractual maturities because borrowers on a certain portion of loans underlying these securities have the right to prepay their obligations. | ||||||||||||||||||
Proceeds and Gross Realized Gains from Sales of Securities Available for Sale | ' | ||||||||||||||||||
Year Ended December 31, | 2013 | 2012 | 2011 | ||||||||||||||||
Proceeds | $ | 6,167 | $ | 3,336 | $ | 500 | |||||||||||||
Gross realized gains | $ | 7 | $ | 35 | $ | 1 | |||||||||||||
Loans_to_Banking_Clients_and_R1
Loans to Banking Clients and Related Allowance for Loan Losses (Tables) | 12 Months Ended | |||||||||||||||||||||||||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||||||||||||||||||||||||
Loans to Banking Clients and Related Allowance for Loan Losses [Abstract] | ' | |||||||||||||||||||||||||||||||||||||||||
Composition of Loans to Banking Clients by Loan Segment | ' | |||||||||||||||||||||||||||||||||||||||||
December 31, | 2013 | 2012 | ||||||||||||||||||||||||||||||||||||||||
Residential real estate mortgages | $ | 8,006 | $ | 6,507 | ||||||||||||||||||||||||||||||||||||||
Home equity lines of credit | 3,041 | 3,287 | ||||||||||||||||||||||||||||||||||||||||
Personal loans secured by securities | 1,384 | 963 | ||||||||||||||||||||||||||||||||||||||||
Other | 36 | 25 | ||||||||||||||||||||||||||||||||||||||||
Total loans to banking clients (1) | 12,467 | 10,782 | ||||||||||||||||||||||||||||||||||||||||
Allowance for loan losses | -48 | -56 | ||||||||||||||||||||||||||||||||||||||||
Total loans to banking clients – net | $ | 12,419 | $ | 10,726 | ||||||||||||||||||||||||||||||||||||||
-1 | Loans are evaluated for impairment by loan segment. | |||||||||||||||||||||||||||||||||||||||||
Changes in Allowance for Loan Losses | ' | |||||||||||||||||||||||||||||||||||||||||
Year Ended | 31-Dec-13 | 31-Dec-12 | 31-Dec-11 | |||||||||||||||||||||||||||||||||||||||
Residential | Home | Residential | Home | Residential | Home | |||||||||||||||||||||||||||||||||||||
real estate | equity lines | real estate | equity lines | real estate | equity lines | |||||||||||||||||||||||||||||||||||||
mortgages | of credit | Total | mortgages | of credit | Total | mortgages | of credit | Total | ||||||||||||||||||||||||||||||||||
Balance at beginning of year | $ | 36 | $ | 20 | $ | 56 | $ | 40 | $ | 14 | $ | 54 | $ | 38 | $ | 15 | $ | 53 | ||||||||||||||||||||||||
Charge-offs | -5 | -6 | -11 | -7 | -9 | -16 | -11 | -8 | -19 | |||||||||||||||||||||||||||||||||
Recoveries | 2 | 2 | 4 | 2 | - | 2 | 1 | 1 | 2 | |||||||||||||||||||||||||||||||||
Provision for loan losses | 1 | -2 | -1 | 1 | 15 | 16 | 12 | 6 | 18 | |||||||||||||||||||||||||||||||||
Balance at end of year | $ | 34 | $ | 14 | $ | 48 | $ | 36 | $ | 20 | $ | 56 | $ | 40 | $ | 14 | $ | 54 | ||||||||||||||||||||||||
Delinquency Analysis by Loan Class | ' | |||||||||||||||||||||||||||||||||||||||||
>90 days past | ||||||||||||||||||||||||||||||||||||||||||
30-59 days | 60-89 days | due and other | Total | Total | ||||||||||||||||||||||||||||||||||||||
31-Dec-13 | Current | past due | past due | nonaccrual loans | past due | loans | ||||||||||||||||||||||||||||||||||||
Residential real estate mortgages: | ||||||||||||||||||||||||||||||||||||||||||
First mortgages | $ | 7,808 | $ | 3 | $ | 4 | $ | 30 | $ | 37 | $ | 7,845 | ||||||||||||||||||||||||||||||
Purchased first mortgages | 154 | 1 | - | 6 | 7 | 161 | ||||||||||||||||||||||||||||||||||||
Home equity lines of credit | 3,025 | 2 | 2 | 12 | 16 | 3,041 | ||||||||||||||||||||||||||||||||||||
Personal loans secured by securities | 1,384 | - | - | - | - | 1,384 | ||||||||||||||||||||||||||||||||||||
Other | 36 | - | - | - | - | 36 | ||||||||||||||||||||||||||||||||||||
Total loans to banking clients | $ | 12,407 | $ | 6 | $ | 6 | $ | 48 | $ | 60 | $ | 12,467 | ||||||||||||||||||||||||||||||
31-Dec-12 | ||||||||||||||||||||||||||||||||||||||||||
Residential real estate mortgages: | ||||||||||||||||||||||||||||||||||||||||||
First mortgages | $ | 6,291 | $ | 22 | $ | 2 | $ | 33 | $ | 57 | $ | 6,348 | ||||||||||||||||||||||||||||||
Purchased first mortgages | 154 | 1 | - | 4 | 5 | 159 | ||||||||||||||||||||||||||||||||||||
Home equity lines of credit | 3,269 | 5 | 2 | 11 | 18 | 3,287 | ||||||||||||||||||||||||||||||||||||
Personal loans secured by securities | 963 | - | - | - | - | 963 | ||||||||||||||||||||||||||||||||||||
Other | 22 | 3 | - | - | 3 | 25 | ||||||||||||||||||||||||||||||||||||
Total loans to banking clients | $ | 10,699 | $ | 31 | $ | 4 | $ | 48 | $ | 83 | $ | 10,782 | ||||||||||||||||||||||||||||||
Credit Quality of Residential Real Estate Mortgages and HELOCs by Reviewing FICO Scores at Origination, Current FICO Scores, Loan-To-Value Ratio | ' | |||||||||||||||||||||||||||||||||||||||||
Residential real estate mortgages | ||||||||||||||||||||||||||||||||||||||||||
First | Purchased | Home equity | ||||||||||||||||||||||||||||||||||||||||
31-Dec-13 | mortgages | first mortgages | Total | lines of credit | ||||||||||||||||||||||||||||||||||||||
Year of origination | ||||||||||||||||||||||||||||||||||||||||||
Pre-2009 | $ | 674 | $ | 51 | $ | 725 | $ | 2,044 | ||||||||||||||||||||||||||||||||||
2009 | 185 | 4 | 189 | 260 | ||||||||||||||||||||||||||||||||||||||
2010 | 503 | 7 | 510 | 191 | ||||||||||||||||||||||||||||||||||||||
2011 | 733 | 38 | 771 | 155 | ||||||||||||||||||||||||||||||||||||||
2012 | 2,403 | 26 | 2,429 | 162 | ||||||||||||||||||||||||||||||||||||||
2013 | 3,347 | 35 | 3,382 | 229 | ||||||||||||||||||||||||||||||||||||||
Total | $ | 7,845 | $ | 161 | $ | 8,006 | $ | 3,041 | ||||||||||||||||||||||||||||||||||
Origination FICO | ||||||||||||||||||||||||||||||||||||||||||
<620 | $ | 10 | $ | 1 | $ | 11 | $ | - | ||||||||||||||||||||||||||||||||||
620 – 679 | 96 | 14 | 110 | 20 | ||||||||||||||||||||||||||||||||||||||
680 – 739 | 1,352 | 32 | 1,384 | 576 | ||||||||||||||||||||||||||||||||||||||
>740 | 6,387 | 114 | 6,501 | 2,445 | ||||||||||||||||||||||||||||||||||||||
Total | $ | 7,845 | $ | 161 | $ | 8,006 | $ | 3,041 | ||||||||||||||||||||||||||||||||||
Updated FICO | ||||||||||||||||||||||||||||||||||||||||||
<620 | $ | 50 | $ | 5 | $ | 55 | $ | 42 | ||||||||||||||||||||||||||||||||||
620 – 679 | 209 | 10 | 219 | 106 | ||||||||||||||||||||||||||||||||||||||
680 – 739 | 1,012 | 29 | 1,041 | 453 | ||||||||||||||||||||||||||||||||||||||
>740 | 6,574 | 117 | 6,691 | 2,440 | ||||||||||||||||||||||||||||||||||||||
Total | $ | 7,845 | $ | 161 | $ | 8,006 | $ | 3,041 | ||||||||||||||||||||||||||||||||||
Origination LTV | ||||||||||||||||||||||||||||||||||||||||||
<70% | $ | 5,306 | $ | 110 | $ | 5,416 | $ | 2,040 | ||||||||||||||||||||||||||||||||||
>70% – <90% | 2,523 | 45 | 2,568 | 977 | ||||||||||||||||||||||||||||||||||||||
>90% – <100% | 16 | 6 | 22 | 24 | ||||||||||||||||||||||||||||||||||||||
Total | $ | 7,845 | $ | 161 | $ | 8,006 | $ | 3,041 | ||||||||||||||||||||||||||||||||||
Percent of Loans | ||||||||||||||||||||||||||||||||||||||||||
that are 90+ Days | ||||||||||||||||||||||||||||||||||||||||||
Past Due and | ||||||||||||||||||||||||||||||||||||||||||
Weighted | Less than 90 Days | |||||||||||||||||||||||||||||||||||||||||
Average | Utilization | Past Due but on | ||||||||||||||||||||||||||||||||||||||||
31-Dec-13 | Balance | Updated FICO | Rate (1) | Nonaccrual Status | ||||||||||||||||||||||||||||||||||||||
Residential real estate mortgages: | ||||||||||||||||||||||||||||||||||||||||||
Estimated Current LTV | ||||||||||||||||||||||||||||||||||||||||||
<70% | $ | 6,649 | 775 | N/A | 0.05 | % | ||||||||||||||||||||||||||||||||||||
>70% – <90% | 1,181 | 763 | N/A | 0.34 | % | |||||||||||||||||||||||||||||||||||||
>90% – <100% | 86 | 732 | N/A | 4.77 | % | |||||||||||||||||||||||||||||||||||||
>100% | 90 | 730 | N/A | 10.50 | % | |||||||||||||||||||||||||||||||||||||
Total | $ | 8,006 | 772 | N/A | 0.26 | % | ||||||||||||||||||||||||||||||||||||
Home equity lines of credit: | ||||||||||||||||||||||||||||||||||||||||||
Estimated Current LTV | ||||||||||||||||||||||||||||||||||||||||||
<70% | $ | 2,127 | 773 | 36 | % | 0.13 | % | |||||||||||||||||||||||||||||||||||
>70% – <90% | 664 | 762 | 48 | % | 0.22 | % | ||||||||||||||||||||||||||||||||||||
>90% – <100% | 127 | 752 | 59 | % | 1.22 | % | ||||||||||||||||||||||||||||||||||||
>100% | 123 | 743 | 63 | % | 1.34 | % | ||||||||||||||||||||||||||||||||||||
Total | $ | 3,041 | 769 | 39 | % | 0.24 | % | |||||||||||||||||||||||||||||||||||
-1 | The Utilization Rate is calculated using the outstanding HELOC balance divided by the associated total line of credit. | |||||||||||||||||||||||||||||||||||||||||
N/A Not applicable. | ||||||||||||||||||||||||||||||||||||||||||
Residential real estate mortgages | ||||||||||||||||||||||||||||||||||||||||||
First | Purchased | Home equity | ||||||||||||||||||||||||||||||||||||||||
31-Dec-12 | mortgages | first mortgages | Total | lines of credit | ||||||||||||||||||||||||||||||||||||||
Year of origination | ||||||||||||||||||||||||||||||||||||||||||
Pre-2009 | $ | 867 | $ | 62 | $ | 929 | $ | 2,338 | ||||||||||||||||||||||||||||||||||
2009 | 305 | 6 | 311 | 338 | ||||||||||||||||||||||||||||||||||||||
2010 | 909 | 12 | 921 | 249 | ||||||||||||||||||||||||||||||||||||||
2011 | 1,270 | 53 | 1,323 | 198 | ||||||||||||||||||||||||||||||||||||||
2012 | 2,997 | 26 | 3,023 | 164 | ||||||||||||||||||||||||||||||||||||||
Total | $ | 6,348 | $ | 159 | $ | 6,507 | $ | 3,287 | ||||||||||||||||||||||||||||||||||
Origination FICO | ||||||||||||||||||||||||||||||||||||||||||
<620 | $ | 10 | $ | 1 | $ | 11 | $ | - | ||||||||||||||||||||||||||||||||||
620 – 679 | 98 | 16 | 114 | 23 | ||||||||||||||||||||||||||||||||||||||
680 – 739 | 1,141 | 40 | 1,181 | 633 | ||||||||||||||||||||||||||||||||||||||
>740 | 5,099 | 102 | 5,201 | 2,631 | ||||||||||||||||||||||||||||||||||||||
Total | $ | 6,348 | $ | 159 | $ | 6,507 | $ | 3,287 | ||||||||||||||||||||||||||||||||||
Updated FICO | ||||||||||||||||||||||||||||||||||||||||||
<620 | $ | 54 | $ | 6 | $ | 60 | $ | 49 | ||||||||||||||||||||||||||||||||||
620 – 679 | 191 | 13 | 204 | 117 | ||||||||||||||||||||||||||||||||||||||
680 – 739 | 940 | 34 | 974 | 510 | ||||||||||||||||||||||||||||||||||||||
>740 | 5,163 | 106 | 5,269 | 2,611 | ||||||||||||||||||||||||||||||||||||||
Total | $ | 6,348 | $ | 159 | $ | 6,507 | $ | 3,287 | ||||||||||||||||||||||||||||||||||
Origination LTV | ||||||||||||||||||||||||||||||||||||||||||
<70% | $ | 4,189 | $ | 97 | $ | 4,286 | $ | 2,225 | ||||||||||||||||||||||||||||||||||
>70% – <90% | 2,142 | 54 | 2,196 | 1,036 | ||||||||||||||||||||||||||||||||||||||
>90% – <100% | 17 | 8 | 25 | 26 | ||||||||||||||||||||||||||||||||||||||
Total | $ | 6,348 | $ | 159 | $ | 6,507 | $ | 3,287 | ||||||||||||||||||||||||||||||||||
Percent of Loans | ||||||||||||||||||||||||||||||||||||||||||
that are 90+ Days | ||||||||||||||||||||||||||||||||||||||||||
Past Due and | ||||||||||||||||||||||||||||||||||||||||||
Weighted | Less than 90 Days | |||||||||||||||||||||||||||||||||||||||||
Average | Utilization | Past Due but on | ||||||||||||||||||||||||||||||||||||||||
31-Dec-12 | Balance | Updated FICO | Rate (1) | Nonaccrual Status | ||||||||||||||||||||||||||||||||||||||
Residential real estate mortgages: | ||||||||||||||||||||||||||||||||||||||||||
Estimated Current LTV | ||||||||||||||||||||||||||||||||||||||||||
<70% | $ | 4,162 | 772 | N/A | 0.05 | % | ||||||||||||||||||||||||||||||||||||
>70% – <90% | 1,841 | 764 | N/A | 0.22 | % | |||||||||||||||||||||||||||||||||||||
>90% – <100% | 168 | 750 | N/A | 0.51 | % | |||||||||||||||||||||||||||||||||||||
>100% | 336 | 741 | N/A | 5.34 | % | |||||||||||||||||||||||||||||||||||||
Total | $ | 6,507 | 768 | N/A | 0.38 | % | ||||||||||||||||||||||||||||||||||||
Home equity lines of credit: | ||||||||||||||||||||||||||||||||||||||||||
Estimated Current LTV | ||||||||||||||||||||||||||||||||||||||||||
<70% | $ | 1,559 | 773 | 36 | % | 0.14 | % | |||||||||||||||||||||||||||||||||||
>70% – <90% | 1,020 | 766 | 46 | % | 0.18 | % | ||||||||||||||||||||||||||||||||||||
>90% – <100% | 267 | 759 | 54 | % | 0.44 | % | ||||||||||||||||||||||||||||||||||||
>100% | 441 | 753 | 59 | % | 1.06 | % | ||||||||||||||||||||||||||||||||||||
Total | $ | 3,287 | 767 | 42 | % | 0.31 | % | |||||||||||||||||||||||||||||||||||
-1 | The Utilization Rate is calculated using the outstanding HELOC balance divided by the associated total line of credit. | |||||||||||||||||||||||||||||||||||||||||
N/A Not applicable. | ||||||||||||||||||||||||||||||||||||||||||
Equipment_Office_Facilities_an1
Equipment, Office Facilities, and Property (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Equipment, Office Facilities, and Property [Abstract] | ' | ||||||||||||
Equipment, Office Facilities, and Property | ' | ||||||||||||
December 31, | 2013 | 2012 | |||||||||||
Software | $ | 1,177 | $ | 1,067 | |||||||||
Buildings | 460 | 456 | |||||||||||
Leasehold improvements | 300 | 287 | |||||||||||
Information technology equipment | 245 | 398 | |||||||||||
Furniture and equipment | 131 | 133 | |||||||||||
Telecommunications equipment | 102 | 95 | |||||||||||
Construction in progress | 95 | 7 | |||||||||||
Land | 70 | 59 | |||||||||||
Total equipment, office facilities, and property | 2,580 | 2,502 | |||||||||||
Accumulated depreciation and amortization | -1,790 | -1,827 | |||||||||||
Total equipment, office facilities, and property – net | $ | 790 | $ | 675 | |||||||||
Intangible_Assets_and_Goodwill1
Intangible Assets and Goodwill (Tables) | 12 Months Ended | ||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||
Intangible Assets and Goodwill [Abstract] | ' | ||||||||||||||||||||||
Gross Carrying Value of Intangible Assets and Accumulated Amortization | ' | ||||||||||||||||||||||
31-Dec-13 | 31-Dec-12 | ||||||||||||||||||||||
Gross | Net | Gross | Net | ||||||||||||||||||||
Carrying | Accumulated | Carrying | Carrying | Accumulated | Carrying | ||||||||||||||||||
Value | Amortization | Value | Value | Amortization | Value | ||||||||||||||||||
Customer relationships | $ | 274 | $ | 84 | $ | 190 | $ | 279 | $ | 51 | $ | 228 | |||||||||||
Technology | 89 | 27 | 62 | 89 | 16 | 73 | |||||||||||||||||
Trade name | 17 | 4 | 13 | 17 | 2 | 15 | |||||||||||||||||
Other | 2 | 1 | 1 | 5 | 2 | 3 | |||||||||||||||||
Total intangible assets | $ | 382 | $ | 116 | $ | 266 | $ | 390 | $ | 71 | $ | 319 | |||||||||||
Estimated Future Annual Amortization Expense for Intangible Assets | ' | ||||||||||||||||||||||
2014 | $ | 44 | |||||||||||||||||||||
2015 | $ | 40 | |||||||||||||||||||||
2016 | $ | 37 | |||||||||||||||||||||
2017 | $ | 34 | |||||||||||||||||||||
2018 | $ | 31 | |||||||||||||||||||||
Thereafter | $ | 80 | |||||||||||||||||||||
Total intangible assets | $ | 266 | |||||||||||||||||||||
Changes in Carrying Amount of Goodwill as Allocated to Reportable Segments | ' | ||||||||||||||||||||||
Investor | Advisor | ||||||||||||||||||||||
Services | Services | Total | |||||||||||||||||||||
Balance at December 31, 2011 | $ | 1,083 | $ | 78 | $ | 1,161 | |||||||||||||||||
Goodwill acquired and other changes during the period | 45 | 22 | 67 | ||||||||||||||||||||
Balance at December 31, 2012 | 1,128 | 100 | 1,228 | ||||||||||||||||||||
Goodwill acquired and other changes during the period | -1 | - | -1 | ||||||||||||||||||||
Balance at December 31, 2013 | $ | 1,127 | $ | 100 | $ | 1,227 | |||||||||||||||||
Other_Assets_Tables
Other Assets (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Text Block [Abstract] | ' | ||||||||||||
Components of Other Assets | ' | ||||||||||||
December 31, | 2013 | 2012 | |||||||||||
Accounts receivable (1) | $ | 328 | $ | 417 | |||||||||
Interest and dividends receivable | 171 | 150 | |||||||||||
Prepaid expenses | 85 | 114 | |||||||||||
Other investments | 59 | 59 | |||||||||||
Deferred tax asset – net | 28 | - | |||||||||||
Other | 75 | 73 | |||||||||||
Total other assets | $ | 746 | $ | 813 | |||||||||
-1 | Accounts receivable includes accrued service fee income and a receivable from the Company’s loan servicer. | ||||||||||||
Deposits_from_Banking_Clients_
Deposits from Banking Clients (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Deposits from Banking Clients [Abstract] | ' | ||||||||||||
Deposits from Banking Clients Consisting of Interest Bearing and Noninterest Bearing Deposits | ' | ||||||||||||
December 31, | 2013 | 2012 | |||||||||||
Interest-bearing deposits: | |||||||||||||
Deposits swept from brokerage accounts | $ | 72,166 | $ | 58,229 | |||||||||
Checking | 12,053 | 11,632 | |||||||||||
Savings and other | 8,232 | 9,089 | |||||||||||
Total interest-bearing deposits | 92,451 | 78,950 | |||||||||||
Non-interest-bearing deposits | 521 | 427 | |||||||||||
Total deposits from banking clients | $ | 92,972 | $ | 79,377 | |||||||||
Borrowings_Tables
Borrowings (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Borrowings [Abstract] | ' | ||||||||||||
Long-term Debt Including Unamortized Debt Discounts and Premiums | ' | ||||||||||||
December 31, | 2013 | 2012 | |||||||||||
Senior Notes | $ | 1,565 | $ | 1,288 | |||||||||
Senior Medium-Term Notes, Series A | 249 | 249 | |||||||||||
Finance lease obligation | 89 | 95 | |||||||||||
Total long-term debt | $ | 1,903 | $ | 1,632 | |||||||||
Annual Maturities on Long-term Debt Outstanding | ' | ||||||||||||
2014 | $ | 6 | |||||||||||
2015 | 357 | ||||||||||||
2016 | 7 | ||||||||||||
2017 | 258 | ||||||||||||
2018 | 283 | ||||||||||||
Thereafter | 1,009 | ||||||||||||
Total maturities | 1,920 | ||||||||||||
Unamortized discount, net | -17 | ||||||||||||
Total long-term debt | $ | 1,903 | |||||||||||
Commitments_and_Contingencies_
Commitments and Contingencies (Tables) | 12 Months Ended | ||||||||||
Dec. 31, 2013 | |||||||||||
Commitments and Contingencies [Abstract] | ' | ||||||||||
Future Annual Minimum Rental Commitments, Net of Contractual Subleases | ' | ||||||||||
Operating | |||||||||||
Leases | Subleases | Net | |||||||||
2014 | $ | 123 | $ | 34 | $ | 89 | |||||
2015 | 108 | 34 | 74 | ||||||||
2016 | 96 | 34 | 62 | ||||||||
2017 | 81 | 28 | 53 | ||||||||
2018 | 45 | 6 | 39 | ||||||||
Thereafter | 107 | 8 | 99 | ||||||||
Total | $ | 560 | $ | 144 | $ | 416 | |||||
Purchase Obligations | ' | ||||||||||
2014 | $ | 233 | |||||||||
2015 | 108 | ||||||||||
2016 | 64 | ||||||||||
2017 | 8 | ||||||||||
2018 | 1 | ||||||||||
Thereafter | 1 | ||||||||||
Total | $ | 415 | |||||||||
Fair_Values_of_Assets_and_Liab1
Fair Values of Assets and Liabilities (Tables) | 12 Months Ended | ||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||
Fair Values of Assets and Liabilities [Abstract] | ' | ||||||||||||||||||||||
Fair Value Hierarchy for Assets Measured at Fair Value | ' | ||||||||||||||||||||||
Quoted Prices | |||||||||||||||||||||||
in Active Markets | Significant | Significant | |||||||||||||||||||||
for Identical | Other Observable | Unobservable | |||||||||||||||||||||
Assets | Inputs | Inputs | Balance at | ||||||||||||||||||||
31-Dec-13 | (Level 1) | (Level 2) | (Level 3) | Fair Value | |||||||||||||||||||
Cash equivalents: | |||||||||||||||||||||||
Money market funds | $ | 1,141 | $ | - | $ | - | $ | 1,141 | |||||||||||||||
Commercial paper | - | 22 | - | 22 | |||||||||||||||||||
Total cash equivalents | 1,141 | 22 | - | 1,163 | |||||||||||||||||||
Investments segregated and on deposit for | |||||||||||||||||||||||
regulatory purposes: | |||||||||||||||||||||||
Certificates of deposit | - | 2,737 | - | 2,737 | |||||||||||||||||||
U.S. Government securities | - | 2,539 | - | 2,539 | |||||||||||||||||||
Total investments segregated and on deposit for | |||||||||||||||||||||||
regulatory purposes | - | 5,276 | - | 5,276 | |||||||||||||||||||
Other securities owned: | |||||||||||||||||||||||
Schwab Funds® money market funds | 261 | - | - | 261 | |||||||||||||||||||
Equity and bond mutual funds | 208 | - | - | 208 | |||||||||||||||||||
State and municipal debt obligations | - | 32 | - | 32 | |||||||||||||||||||
Equity, U.S. Government and corporate debt, and | |||||||||||||||||||||||
other securities | 1 | 15 | - | 16 | |||||||||||||||||||
Total other securities owned | 470 | 47 | - | 517 | |||||||||||||||||||
Securities available for sale: | |||||||||||||||||||||||
U.S. agency mortgage-backed securities | - | 18,645 | - | 18,645 | |||||||||||||||||||
Asset-backed securities | - | 15,206 | - | 15,206 | |||||||||||||||||||
Corporate debt securities | - | 9,007 | - | 9,007 | |||||||||||||||||||
U.S. agency notes | - | 4,136 | - | 4,136 | |||||||||||||||||||
Certificates of deposit | - | 3,652 | - | 3,652 | |||||||||||||||||||
Non-agency residential mortgage-backed securities | - | 593 | - | 593 | |||||||||||||||||||
Non-agency commercial mortgage-backed securities | - | 279 | - | 279 | |||||||||||||||||||
Other securities | - | 100 | - | 100 | |||||||||||||||||||
Total securities available for sale | - | 51,618 | - | 51,618 | |||||||||||||||||||
Total | $ | 1,611 | $ | 56,963 | $ | - | $ | 58,574 | |||||||||||||||
Quoted Prices | |||||||||||||||||||||||
in Active Markets | Significant | Significant | |||||||||||||||||||||
for Identical | Other Observable | Unobservable | |||||||||||||||||||||
Assets | Inputs | Inputs | Balance at | ||||||||||||||||||||
31-Dec-12 | (Level 1) | (Level 2) | (Level 3) | Fair Value | |||||||||||||||||||
Cash equivalents: | |||||||||||||||||||||||
Money market funds | $ | 413 | $ | - | $ | - | $ | 413 | |||||||||||||||
Commercial paper | - | 1,076 | - | 1,076 | |||||||||||||||||||
Total cash equivalents | 413 | 1,076 | - | 1,489 | |||||||||||||||||||
Investments segregated and on deposit for | |||||||||||||||||||||||
regulatory purposes: | |||||||||||||||||||||||
Certificates of deposit | - | 2,976 | - | 2,976 | |||||||||||||||||||
U.S. Government securities | - | 1,767 | - | 1,767 | |||||||||||||||||||
Total investments segregated and on deposit for | |||||||||||||||||||||||
regulatory purposes | - | 4,743 | - | 4,743 | |||||||||||||||||||
Other securities owned: | |||||||||||||||||||||||
Schwab Funds® money market funds | 329 | - | - | 329 | |||||||||||||||||||
Equity and bond mutual funds | 217 | - | - | 217 | |||||||||||||||||||
State and municipal debt obligations | - | 48 | - | 48 | |||||||||||||||||||
Equity, U.S. Government and corporate debt, and | |||||||||||||||||||||||
other securities | 2 | 40 | - | 42 | |||||||||||||||||||
Total other securities owned | 548 | 88 | - | 636 | |||||||||||||||||||
Securities available for sale: | |||||||||||||||||||||||
U.S. agency mortgage-backed securities | - | 20,476 | - | 20,476 | |||||||||||||||||||
Asset-backed securities | - | 8,164 | - | 8,164 | |||||||||||||||||||
Corporate debt securities | - | 6,256 | - | 6,256 | |||||||||||||||||||
Certificates of deposit | - | 6,161 | - | 6,161 | |||||||||||||||||||
U.S. agency notes | - | 3,464 | - | 3,464 | |||||||||||||||||||
Non-agency residential mortgage-backed securities | - | 733 | - | 733 | |||||||||||||||||||
Commercial paper | - | 574 | - | 574 | |||||||||||||||||||
Other securities | - | 295 | - | 295 | |||||||||||||||||||
Total securities available for sale | - | 46,123 | - | 46,123 | |||||||||||||||||||
Total | $ | 961 | $ | 52,030 | $ | - | $ | 52,991 | |||||||||||||||
Fair Value Hierarchy for Financial Instruments Not Recorded at Fair Value | ' | ||||||||||||||||||||||
Quoted Prices | |||||||||||||||||||||||
in Active Markets | Significant | Significant | |||||||||||||||||||||
for Identical | Other Observable | Unobservable | |||||||||||||||||||||
Carrying | Assets | Inputs | Inputs | Balance at | |||||||||||||||||||
31-Dec-13 | Amount | (Level 1) | (Level 2) | (Level 3) | Fair Value | ||||||||||||||||||
Assets: | |||||||||||||||||||||||
Cash and cash equivalents | $ | 6,565 | $ | - | $ | 6,565 | $ | - | $ | 6,565 | |||||||||||||
Cash and investments segregated and | |||||||||||||||||||||||
on deposit for regulatory purposes | 18,273 | - | 18,273 | - | 18,273 | ||||||||||||||||||
Receivables from brokers, dealers, and | |||||||||||||||||||||||
clearing organizations | 509 | - | 509 | - | 509 | ||||||||||||||||||
Receivables from brokerage clients – net | 13,949 | - | 13,949 | - | 13,949 | ||||||||||||||||||
Securities held to maturity: | |||||||||||||||||||||||
U.S. agency mortgage-backed securities | 29,260 | - | 28,500 | - | 28,500 | ||||||||||||||||||
Non-agency commercial mortgage-backed | |||||||||||||||||||||||
securities | 958 | - | 890 | - | 890 | ||||||||||||||||||
Other securities | 100 | - | 100 | - | 100 | ||||||||||||||||||
Total securities held to maturity | 30,318 | - | 29,490 | - | 29,490 | ||||||||||||||||||
Loans to banking clients – net: | |||||||||||||||||||||||
Residential real estate mortgages | 8,006 | - | 7,930 | - | 7,930 | ||||||||||||||||||
Home equity lines of credit | 3,041 | - | 3,043 | - | 3,043 | ||||||||||||||||||
Personal loans secured by securities | 1,384 | - | 1,384 | - | 1,384 | ||||||||||||||||||
Other | 36 | - | 35 | - | 35 | ||||||||||||||||||
Total loans to banking clients – net | 12,467 | - | 12,392 | - | 12,392 | ||||||||||||||||||
Other assets | 64 | - | 64 | - | 64 | ||||||||||||||||||
Total | $ | 82,145 | $ | - | $ | 81,242 | $ | - | $ | 81,242 | |||||||||||||
Liabilities: | |||||||||||||||||||||||
Deposits from banking clients | $ | 92,972 | $ | - | $ | 92,972 | $ | - | $ | 92,972 | |||||||||||||
Payables to brokers, dealers, and clearing | |||||||||||||||||||||||
organizations | 1,467 | - | 1,467 | - | 1,467 | ||||||||||||||||||
Payables to brokerage clients | 35,333 | - | 35,333 | - | 35,333 | ||||||||||||||||||
Accrued expenses and other liabilities | 680 | - | 680 | - | 680 | ||||||||||||||||||
Long-term debt | 1,903 | - | 1,989 | - | 1,989 | ||||||||||||||||||
Total | $ | 132,355 | $ | - | $ | 132,441 | $ | - | $ | 132,441 | |||||||||||||
Quoted Prices | |||||||||||||||||||||||
in Active Markets | Significant | Significant | |||||||||||||||||||||
for Identical | Other Observable | Unobservable | |||||||||||||||||||||
Carrying | Assets | Inputs | Inputs | Balance at | |||||||||||||||||||
31-Dec-12 | Amount | (Level 1) | (Level 2) | (Level 3) | Fair Value | ||||||||||||||||||
Assets: | |||||||||||||||||||||||
Cash and cash equivalents | $ | 11,174 | $ | - | $ | 11,174 | $ | - | $ | 11,174 | |||||||||||||
Cash and investments segregated and | |||||||||||||||||||||||
on deposit for regulatory purposes | 23,723 | - | 23,723 | - | 23,723 | ||||||||||||||||||
Receivables from brokers, dealers, and | |||||||||||||||||||||||
clearing organizations | 333 | - | 333 | - | 333 | ||||||||||||||||||
Receivables from brokerage clients – net | 13,453 | - | 13,453 | - | 13,453 | ||||||||||||||||||
Securities held to maturity: | |||||||||||||||||||||||
U.S. agency mortgage-backed securities | 17,750 | - | 18,289 | - | 18,289 | ||||||||||||||||||
Other securities | 444 | - | 443 | - | 443 | ||||||||||||||||||
Total securities held to maturity | 18,194 | - | 18,732 | - | 18,732 | ||||||||||||||||||
Loans to banking clients – net: | |||||||||||||||||||||||
Residential real estate mortgages | 6,471 | - | 6,687 | - | 6,687 | ||||||||||||||||||
Home equity lines of credit | 3,267 | - | 3,295 | - | 3,295 | ||||||||||||||||||
Personal loans secured by securities | 963 | - | 963 | - | 963 | ||||||||||||||||||
Other | 25 | - | 24 | - | 24 | ||||||||||||||||||
Total loans to banking clients – net | 10,726 | - | 10,969 | - | 10,969 | ||||||||||||||||||
Other assets | 64 | - | 64 | - | 64 | ||||||||||||||||||
Total | $ | 77,667 | $ | - | $ | 78,448 | $ | - | $ | 78,448 | |||||||||||||
Liabilities: | |||||||||||||||||||||||
Deposits from banking clients | $ | 79,377 | $ | - | $ | 79,377 | $ | - | $ | 79,377 | |||||||||||||
Payables to brokers, dealers, and clearing | |||||||||||||||||||||||
organizations | 1,068 | - | 1,068 | - | 1,068 | ||||||||||||||||||
Payables to brokerage clients | 40,330 | - | 40,330 | - | 40,330 | ||||||||||||||||||
Accrued expenses and other liabilities | 353 | - | 353 | - | 353 | ||||||||||||||||||
Long-term debt | 1,632 | - | 1,782 | - | 1,782 | ||||||||||||||||||
Total | $ | 122,760 | $ | - | $ | 122,910 | $ | - | $ | 122,910 | |||||||||||||
Stockholders_Equity_Tables
Stockholders' Equity (Tables) | 12 Months Ended | ||||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||||
Stockholders' Equity [Abstract] | ' | ||||||||||||||||||||||||||
Preferred Stock Issued and Outstanding | ' | ||||||||||||||||||||||||||
December 31, | 2013 | 2012 | |||||||||||||||||||||||||
Shares | Shares | ||||||||||||||||||||||||||
Issued and | Liquidation | Issued and | Liquidation | ||||||||||||||||||||||||
Outstanding | Preference | Liquidation | Carrying | Outstanding | Preference | Liquidation | Carrying | ||||||||||||||||||||
(In thousands) | Per Share | Preference | Value | (In thousands) | Per Share | Preference | Value | ||||||||||||||||||||
Series A | 400 | $ | 1,000 | $ | 400 | $ | 395 | 400 | $ | 1,000 | $ | 400 | $ | 394 | |||||||||||||
Series B | 485 | $ | 1,000 | 485 | 474 | 485 | $ | 1,000 | 485 | 471 | |||||||||||||||||
Total Preferred Stock | 885 | $ | 885 | $ | 869 | 885 | $ | 885 | $ | 865 | |||||||||||||||||
Accumulated_Other_Comprehensiv1
Accumulated Other Comprehensive Income (Tables) | 12 Months Ended | ||||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||||
Accumulated Other Comprehensive Income [Abstract] | ' | ||||||||||||||||||||||||||
Components of Other Comprehensive (Loss) Income | ' | ||||||||||||||||||||||||||
Year Ended December 31, | 2013 | 2012 | 2011 | ||||||||||||||||||||||||
Before | Tax | Net of | Before | Tax | Net of | Before | Tax | Net of | |||||||||||||||||||
tax | effect | tax | tax | effect | tax | tax | effect | tax | |||||||||||||||||||
Change in net unrealized gain on | |||||||||||||||||||||||||||
securities available for sale: | |||||||||||||||||||||||||||
Net unrealized (loss) gain | $ | -468 | $ | 176 | $ | -292 | $ | 470 | $ | -177 | $ | 293 | $ | -43 | $ | 16 | $ | -27 | |||||||||
Reclassification of impairment charges | |||||||||||||||||||||||||||
included in net impairment losses on | |||||||||||||||||||||||||||
securities | 10 | -4 | 6 | 32 | -12 | 20 | 31 | -12 | 19 | ||||||||||||||||||
Other reclassifications included in | |||||||||||||||||||||||||||
other revenue | -7 | 3 | -4 | -38 | 14 | -24 | 1 | - | 1 | ||||||||||||||||||
Change in net unrealized gain on | |||||||||||||||||||||||||||
securities available for sale | -465 | 175 | -290 | 464 | -175 | 289 | -11 | 4 | -7 | ||||||||||||||||||
Other | 1 | - | 1 | 1 | - | 1 | -1 | - | -1 | ||||||||||||||||||
Other comprehensive (loss) income | $ | -464 | $ | 175 | $ | -289 | $ | 465 | $ | -175 | $ | 290 | $ | -12 | $ | 4 | $ | -8 | |||||||||
Accumulated Other Comprehensive Income Balances | ' | ||||||||||||||||||||||||||
Net unrealized | Total | ||||||||||||||||||||||||||
gain on securities | accumulated other | ||||||||||||||||||||||||||
available for sale | Other | comprehensive income | |||||||||||||||||||||||||
Balance at December 31, 2010 | $ | 17 | $ | -1 | $ | 16 | |||||||||||||||||||||
Other net changes | -7 | -1 | -8 | ||||||||||||||||||||||||
Balance at December 31, 2011 | $ | 10 | $ | -2 | $ | 8 | |||||||||||||||||||||
Other net changes | 289 | 1 | 290 | ||||||||||||||||||||||||
Balance at December 31, 2012 | $ | 299 | $ | -1 | $ | 298 | |||||||||||||||||||||
Other net changes | -290 | 1 | -289 | ||||||||||||||||||||||||
Balance at December 31, 2013 | $ | 9 | $ | - | $ | 9 | |||||||||||||||||||||
Employee_Incentive_Retirement_1
Employee Incentive, Retirement, and Deferred Compensation Plans (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Employee Incentive, Retirement, and Deferred Compensation Plans [Abstract] | ' | ||||||||||||||||
Stock-Based Compensation Expense and Related Income Tax Benefit | ' | ||||||||||||||||
Year Ended December 31, | 2013 | 2012 | 2011 | ||||||||||||||
Stock option expense | $ | 52 | $ | 57 | $ | 61 | |||||||||||
Restricted stock unit expense | 60 | 40 | 23 | ||||||||||||||
Restricted stock award expense | - | 5 | 12 | ||||||||||||||
Employee stock purchase plan expense | 4 | 3 | 3 | ||||||||||||||
Total stock-based compensation expense | $ | 116 | $ | 105 | $ | 99 | |||||||||||
Income tax benefit on stock-based compensation | $ | -43 | $ | -39 | $ | -37 | |||||||||||
Stock Option Activity | ' | ||||||||||||||||
Weighted- | |||||||||||||||||
Weighted- | Average | ||||||||||||||||
Average | Remaining | Aggregate | |||||||||||||||
Number | Exercise Price | Contractual | Intrinsic | ||||||||||||||
of Options | per Share | Life (in years) | Value | ||||||||||||||
Outstanding at December 31, 2012 | 57 | $ | 16.04 | ||||||||||||||
Granted | 7 | $ | 21.71 | ||||||||||||||
Exercised | -16 | $ | 16.47 | ||||||||||||||
Forfeited | -1 | $ | 13.39 | ||||||||||||||
Expired | -1 | $ | 19.96 | ||||||||||||||
Outstanding at December 31, 2013 | 46 | $ | 16.74 | 6.83 | $ | 427 | |||||||||||
Vested and expected to vest at December 31, 2013 | 44 | $ | 16.76 | 6.74 | $ | 406 | |||||||||||
Vested and exercisable December 31, 2013 | 25 | $ | 17.17 | 5.33 | $ | 220 | |||||||||||
Information on Stock Options Granted and Exercised | ' | ||||||||||||||||
Year Ended December 31, | 2013 | 2012 | 2011 | ||||||||||||||
Weighted-average fair value of options granted per share | $ | 6.33 | $ | 4.07 | $ | 4.16 | |||||||||||
Cash received from options exercised | $ | 258 | $ | 35 | $ | 96 | |||||||||||
Tax benefit realized on options exercised | $ | - | $ | 1 | $ | 7 | |||||||||||
Aggregate intrinsic value of options exercised | $ | 82 | $ | 9 | $ | 38 | |||||||||||
Assumptions Used to Value Options Granted and Their Expected Lives | ' | ||||||||||||||||
Year Ended December 31, | 2013 | 2012 | 2011 | ||||||||||||||
Weighted-average expected dividend yield | 1.13 | % | 0.99 | % | 0.85 | % | |||||||||||
Weighted-average expected volatility | 28 | % | 31 | % | 36 | % | |||||||||||
Weighted-average risk-free interest rate | 2.5 | % | 1.8 | % | 2.1 | % | |||||||||||
Expected life (in years) | 4.6 – 7.9 | 3.0 – 6.7 | 0.0 – 6.3 | ||||||||||||||
Restricted Stock Units Activity | ' | ||||||||||||||||
Weighted- | |||||||||||||||||
Average Grant | |||||||||||||||||
Number | Date Fair Value | ||||||||||||||||
of Units | per Unit | ||||||||||||||||
Outstanding at December 31, 2012 | 11 | $ | 13.34 | ||||||||||||||
Granted | 4 | $ | 21.32 | ||||||||||||||
Vested | -3 | $ | 22.44 | ||||||||||||||
Forfeited | -1 | $ | 14.17 | ||||||||||||||
Outstanding at December 31, 2013 | 11 | $ | 16.11 | ||||||||||||||
Taxes_on_Income_Tables
Taxes on Income (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Taxes on Income [Abstract] | ' | ||||||||||||
Income Tax Expense | ' | ||||||||||||
Year Ended December 31, | 2013 | 2012 | 2011 | ||||||||||
Current: | |||||||||||||
Federal | $ | 598 | $ | 489 | $ | 424 | |||||||
State | 57 | 28 | 52 | ||||||||||
Total current | 655 | 517 | 476 | ||||||||||
Deferred: | |||||||||||||
Federal | -20 | 5 | 44 | ||||||||||
State | -1 | - | 8 | ||||||||||
Total deferred | -21 | 5 | 52 | ||||||||||
Taxes on income | $ | 634 | $ | 522 | $ | 528 | |||||||
Temporary Differences That Created Deferred Tax Assets and Liabilities | ' | ||||||||||||
December 31, | 2013 | 2012 | |||||||||||
Deferred tax assets: | |||||||||||||
Employee compensation, severance, and benefits | $ | 190 | $ | 189 | |||||||||
Facilities lease commitments | 33 | 35 | |||||||||||
Reserves and allowances | 30 | 37 | |||||||||||
State and local taxes | 12 | - | |||||||||||
Net operating loss carryforwards | 6 | 6 | |||||||||||
Total deferred tax assets | 271 | 267 | |||||||||||
Valuation allowance | -4 | -3 | |||||||||||
Deferred tax assets – net of valuation allowance | 267 | 264 | |||||||||||
Deferred tax liabilities: | |||||||||||||
Depreciation and amortization | -142 | -166 | |||||||||||
Capitalized internal-use software development costs | -62 | -50 | |||||||||||
Deferred cancellation of debt income | -11 | -11 | |||||||||||
Deferred loan costs | -10 | -15 | |||||||||||
Deferred Senior Note exchange | -7 | -6 | |||||||||||
Net unrealized gain on securities available for sale | -5 | -179 | |||||||||||
Other | -2 | -7 | |||||||||||
Total deferred tax liabilities | -239 | -434 | |||||||||||
Deferred tax asset (liability) – net (1) | $ | 28 | $ | -170 | |||||||||
-1 | Amounts are included in other assets and in accrued expenses and other liabilities at December 31, 2013 and 2012, respectively. | ||||||||||||
Reconciliation of Federal Statutory Income Tax Rate to Effective Income Tax Rate | ' | ||||||||||||
Year Ended December 31, | 2013 | 2012 | 2011 | ||||||||||
Federal statutory income tax rate | 35.0 | % | 35.0 | % | 35.0 | % | |||||||
State income taxes, net of federal tax benefit (1) | 2.3 | 1.2 | 2.5 | ||||||||||
Other | -0.1 | -0.2 | 0.4 | ||||||||||
Effective income tax rate | 37.2 | % | 36.0 | % | 37.9 | % | |||||||
Includes the impact of a non-recurring state tax benefit of which $4 million and $20 million were recorded in 2013 and 2012, respectively. | |||||||||||||
-1 | |||||||||||||
Reconciliation of Beginning and Ending Amount of Unrecognized Tax Benefits | ' | ||||||||||||
December 31, | 2013 | 2012 | |||||||||||
Balance at beginning of year | $ | 12 | $ | 13 | |||||||||
Additions for tax positions related to the current year | 1 | 1 | |||||||||||
Additions for tax positions related to prior years | - | 1 | |||||||||||
Reductions due to lapse of statute of limitations | -2 | -2 | |||||||||||
Reductions for settlements with tax authorities | -1 | -1 | |||||||||||
Balance at end of year | $ | 10 | $ | 12 | |||||||||
Earnings_Per_Common_Share_Tabl
Earnings Per Common Share (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Earnings Per Common Share [Abstract] | ' | ||||||||||||
EPS under Basic and Diluted Computations | ' | ||||||||||||
Year Ended December 31, | 2013 | 2012 | 2011 | ||||||||||
Net income | $ | 1,071 | $ | 928 | $ | 864 | |||||||
Preferred stock dividends | -61 | -45 | - | ||||||||||
Net income available to common stockholders | $ | 1,010 | $ | 883 | $ | 864 | |||||||
Weighted-average common shares outstanding — basic | 1,285 | 1,274 | 1,227 | ||||||||||
Common stock equivalent shares related to stock incentive plans | 8 | 1 | 2 | ||||||||||
Weighted-average common shares outstanding — diluted (1) | 1,293 | 1,275 | 1,229 | ||||||||||
Basic EPS | $ | .78 | $ | .69 | $ | .70 | |||||||
Diluted EPS | $ | .78 | $ | .69 | $ | .70 | |||||||
-1 | Antidilutive stock options and restricted stock awards excluded from the calculation of diluted EPS totaled 34 million, 74 million, and 63 million shares in 2013, 2012, and 2011, respectively. | ||||||||||||
Regulatory_Requirements_Tables
Regulatory Requirements (Tables) | 12 Months Ended | |||||||||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||||||||
Regulatory Requirements [Abstract] | ' | |||||||||||||||||||||||||
Regulatory Capital and Ratios | ' | |||||||||||||||||||||||||
Minimum to be | Minimum Capital | |||||||||||||||||||||||||
Actual | Well Capitalized | Requirement | ||||||||||||||||||||||||
Amount | Ratio | Amount | Ratio | Amount | Ratio | |||||||||||||||||||||
31-Dec-13 | ||||||||||||||||||||||||||
Tier 1 Risk-Based Capital | $ | 6,550 | 19.0 | % | $ | 2,074 | 6.0 | % | $ | 1,383 | 4.0 | % | ||||||||||||||
Total Risk-Based Capital | $ | 6,599 | 19.1 | % | $ | 3,457 | 10.0 | % | $ | 2,766 | 8.0 | % | ||||||||||||||
Tier 1 Leverage | $ | 6,550 | 6.6 | % | $ | 4,993 | 5.0 | % | $ | 3,994 | 4.0 | % | ||||||||||||||
Tangible Equity | $ | 6,550 | 6.6 | % | N/A | $ | 1,997 | 2.0 | % | |||||||||||||||||
31-Dec-12 | ||||||||||||||||||||||||||
Tier 1 Risk-Based Capital | $ | 5,707 | 20.0 | % | $ | 1,709 | 6.0 | % | $ | 1,139 | 4.0 | % | ||||||||||||||
Total Risk-Based Capital | $ | 5,760 | 20.2 | % | $ | 2,848 | 10.0 | % | $ | 2,279 | 8.0 | % | ||||||||||||||
Tier 1 Leverage | $ | 5,707 | 6.7 | % | $ | 4,266 | 5.0 | % | $ | 3,412 | 4.0 | % | ||||||||||||||
Tangible Equity | $ | 5,707 | 6.7 | % | N/A | $ | 1,706 | 2.0 | % | |||||||||||||||||
N/A Not applicable. | ||||||||||||||||||||||||||
Net Capital and Net Capital Requirements for Schwab and optionsXpress, Inc. | ' | |||||||||||||||||||||||||
Net Capital | Net Capital | |||||||||||||||||||||||||
% of | Minimum | 2% of | in Excess of | in Excess of 5% | ||||||||||||||||||||||
Aggregate | Net Capital | Aggregate | Required | of Aggregate | ||||||||||||||||||||||
Net Capital | Debit Balances | Required | Debit Balances | Net Capital | Debit Balances | |||||||||||||||||||||
Schwab | $ | 1,446 | 10 | % | $ | 0.250 | $ | 295 | $ | 1,151 | $ | 707 | ||||||||||||||
optionsXpress, Inc. | $ | 102 | 36 | % | $ | 1 | $ | 6 | $ | 96 | $ | 88 | ||||||||||||||
Segment_Information_Tables
Segment Information (Tables) | 12 Months Ended | |||||||||||||||||||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||||||||||||||||||
Segment Information [Abstract] | ' | |||||||||||||||||||||||||||||||||||
Financial Information for Reportable Segments | ' | |||||||||||||||||||||||||||||||||||
Investor Services | Advisor Services | Unallocated | Total | |||||||||||||||||||||||||||||||||
Year Ended December 31, | 2013 | 2012 | 2011 | 2013 | 2012 | 2011 | 2013 | 2012 | 2011 | 2013 | 2012 | 2011 | ||||||||||||||||||||||||
Net Revenues: | ||||||||||||||||||||||||||||||||||||
Asset management and | ||||||||||||||||||||||||||||||||||||
administration fees | $ | 1,627 | $ | 1,436 | $ | 1,357 | $ | 689 | $ | 607 | $ | 571 | $ | -1 | $ | - | $ | - | $ | 2,315 | $ | 2,043 | $ | 1,928 | ||||||||||||
Net interest revenue | 1,756 | 1,559 | 1,542 | 224 | 205 | 183 | - | - | - | 1,980 | 1,764 | 1,725 | ||||||||||||||||||||||||
Trading revenue | 621 | 612 | 667 | 292 | 255 | 260 | - | 1 | - | 913 | 868 | 927 | ||||||||||||||||||||||||
Other – net (1) | 178 | 123 | 98 | 57 | 62 | 62 | 1 | 71 | - | 236 | 256 | 160 | ||||||||||||||||||||||||
Provision for loan losses | 1 | -15 | -16 | - | -1 | -2 | - | - | - | 1 | -16 | -18 | ||||||||||||||||||||||||
Net impairment losses | ||||||||||||||||||||||||||||||||||||
on securities | -9 | -29 | -29 | -1 | -3 | -2 | - | - | - | -10 | -32 | -31 | ||||||||||||||||||||||||
Total net revenues | 4,174 | 3,686 | 3,619 | 1,261 | 1,125 | 1,072 | - | 72 | - | 5,435 | 4,883 | 4,691 | ||||||||||||||||||||||||
Expenses Excluding Interest | 2,899 | 2,693 | 2,569 | 831 | 739 | 731 | - | 1 | -1 | 3,730 | 3,433 | 3,299 | ||||||||||||||||||||||||
Income before taxes on income | $ | 1,275 | $ | 993 | $ | 1,050 | $ | 430 | $ | 386 | $ | 341 | $ | - | $ | 71 | $ | 1 | $ | 1,705 | $ | 1,450 | $ | 1,392 | ||||||||||||
Capital expenditures | $ | 190 | $ | 98 | $ | 134 | $ | 80 | $ | 40 | $ | 56 | $ | - | $ | - | $ | - | $ | 270 | $ | 138 | $ | 190 | ||||||||||||
Depreciation and amortization | $ | 155 | $ | 157 | $ | 122 | $ | 47 | $ | 39 | $ | 33 | $ | - | $ | - | $ | - | $ | 202 | $ | 196 | $ | 155 | ||||||||||||
-1 | Unallocated amount includes a non-recurring gain of $70 million relating to a confidential resolution of a vendor dispute in 2012. | |||||||||||||||||||||||||||||||||||
Business_Acquisitions_Tables
Business Acquisitions (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Business Acquisitions [Abstract] | ' | ||||||||
Summary of Estimated Fair Value and Useful Lives of Intangible Assets Related to Acquisition | ' | ||||||||
Estimated | |||||||||
Estimated | Useful Life | ||||||||
September 1, 2011 | Fair Value | (In Years) | |||||||
Customer relationships | $ | 200 | 11 | ||||||
Technology | 70 | 9 | |||||||
Trade name | 15 | 9 | |||||||
Total intangible assets | $ | 285 | |||||||
Pro Forma Results of Operations | ' | ||||||||
Year Ended December 31, | 2011 | ||||||||
Net revenues | $ | 4,857 | |||||||
Net income | $ | 896 | |||||||
Basic EPS | $ | 0.71 | |||||||
Diluted EPS | $ | 0.71 | |||||||
The_Charles_Schwab_Corporation1
The Charles Schwab Corporation - Parent Company Only Financial Statements (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
The Charles Schwab Corporation – Parent Company Only Financial Statements [Abstract] | ' | ||||||||||||
Condensed Statements of Income | ' | ||||||||||||
Year Ended December 31, | 2013 | 2012 | 2011 | ||||||||||
Interest revenue | $ | 4 | $ | 6 | $ | 4 | |||||||
Interest expense | -65 | -97 | -103 | ||||||||||
Net interest revenue | -61 | -91 | -99 | ||||||||||
Other revenue – net | - | -30 | 8 | ||||||||||
Expenses excluding interest | -28 | -23 | -30 | ||||||||||
Loss before income tax benefit and equity in net income of subsidiaries | -89 | -144 | -121 | ||||||||||
Income tax benefit | 38 | 58 | 43 | ||||||||||
Loss before equity in net income of subsidiaries | -51 | -86 | -78 | ||||||||||
Equity in net income of subsidiaries: | |||||||||||||
Equity in undistributed net income of subsidiaries | 830 | 662 | 600 | ||||||||||
Dividends from bank subsidiary | 163 | 50 | 150 | ||||||||||
Dividends from non-bank subsidiaries | 129 | 302 | 192 | ||||||||||
Net Income | 1,071 | 928 | 864 | ||||||||||
Preferred stock dividends | 61 | 45 | - | ||||||||||
Net Income Available to Common Stockholders | $ | 1,010 | $ | 883 | $ | 864 | |||||||
Condensed Balance Sheets | ' | ||||||||||||
December 31, | 2013 | 2012 | |||||||||||
Assets | |||||||||||||
Cash and cash equivalents | $ | 700 | $ | 1,339 | |||||||||
Receivables from subsidiaries | 162 | 80 | |||||||||||
Other securities owned – at fair value | 80 | 74 | |||||||||||
Loans to non-bank subsidiaries | 980 | 404 | |||||||||||
Investment in non-bank subsidiaries | 3,828 | 3,615 | |||||||||||
Investment in bank subsidiary | 6,576 | 6,022 | |||||||||||
Other assets | 65 | 88 | |||||||||||
Total assets | $ | 12,391 | $ | 11,622 | |||||||||
Liabilities and Stockholders’ Equity | |||||||||||||
Accrued expenses and other liabilities | $ | 187 | $ | 482 | |||||||||
Payables to subsidiaries | 9 | 14 | |||||||||||
Long-term debt | 1,814 | 1,537 | |||||||||||
Total liabilities | 2,010 | 2,033 | |||||||||||
Stockholders’ equity | 10,381 | 9,589 | |||||||||||
Total liabilities and stockholders’ equity | $ | 12,391 | $ | 11,622 | |||||||||
Condensed Statements of Cash Flows | ' | ||||||||||||
Year Ended December 31, | 2013 | 2012 | 2011 | ||||||||||
Cash Flows from Operating Activities | |||||||||||||
Net income | $ | 1,071 | $ | 928 | $ | 864 | |||||||
Adjustments to reconcile net income to net cash provided by | |||||||||||||
operating activities: | |||||||||||||
Equity in undistributed earnings of subsidiaries | -830 | -662 | -591 | ||||||||||
Provision for deferred income taxes | -11 | 9 | 3 | ||||||||||
Other | -4 | 39 | 1 | ||||||||||
Net change in: | |||||||||||||
Other securities owned | -5 | 3 | 6 | ||||||||||
Other assets | 29 | -21 | 26 | ||||||||||
Accrued expenses and other liabilities | 13 | -5 | -76 | ||||||||||
Net cash provided by operating activities | 263 | 291 | 233 | ||||||||||
Cash Flows from Investing Activities | |||||||||||||
Due from subsidiaries – net | -546 | 43 | 24 | ||||||||||
Increase in investments in subsidiaries | -225 | -307 | -366 | ||||||||||
Other investing activities | -1 | - | 8 | ||||||||||
Net cash used for investing activities | -772 | -264 | -334 | ||||||||||
Cash Flows from Financing Activities | |||||||||||||
Issuance of commercial paper | - | 300 | - | ||||||||||
Repayment of commercial paper | -300 | - | - | ||||||||||
Issuance of long-term debt | 275 | 350 | - | ||||||||||
Repayment of long-term debt | - | -727 | - | ||||||||||
Premium paid on debt exchange | - | -19 | - | ||||||||||
Net proceeds from preferred stock offering | - | 863 | - | ||||||||||
Dividends paid | -368 | -337 | -295 | ||||||||||
Proceeds from stock options exercised and other | 258 | 35 | 96 | ||||||||||
Other financing activities | 5 | -5 | 3 | ||||||||||
Net cash (used for) provided by financing activities | -130 | 460 | -196 | ||||||||||
(Decrease) Increase in Cash and Cash Equivalents | -639 | 487 | -297 | ||||||||||
Cash and Cash Equivalents at Beginning of Year | 1,339 | 852 | 1,149 | ||||||||||
Cash and Cash Equivalents at End of Year | $ | 700 | $ | 1,339 | $ | 852 | |||||||
Quarterly_Financial_Informatio1
Quarterly Financial Information (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Quarterly Financial Information [Abstract] | ' | ||||||||||||||||
Quarterly Financial Information | ' | ||||||||||||||||
Fourth | Third | Second | First | ||||||||||||||
Quarter | Quarter | Quarter | Quarter | ||||||||||||||
Year Ended December 31, 2013: | |||||||||||||||||
Net Revenues | $ | 1,435 | $ | 1,373 | $ | 1,337 | $ | 1,290 | |||||||||
Expenses Excluding Interest | $ | 937 | $ | 909 | $ | 925 | $ | 959 | |||||||||
Net Income | $ | 319 | $ | 290 | $ | 256 | $ | 206 | |||||||||
Net Income Available to Common Stockholders | $ | 297 | $ | 282 | $ | 233 | $ | 198 | |||||||||
Weighted Average Common Shares Outstanding – Diluted | 1,304 | 1,296 | 1,288 | 1,282 | |||||||||||||
Basic Earnings Per Common Share | $ | .23 | $ | .22 | $ | .18 | $ | .15 | |||||||||
Diluted Earnings Per Common Share | $ | .23 | $ | .22 | $ | .18 | $ | .15 | |||||||||
Dividends Declared Per Common Share | $ | .06 | $ | .06 | $ | .06 | $ | .06 | |||||||||
Range of Common Stock Price Per Share: | |||||||||||||||||
High | $ | 26.00 | $ | 22.69 | $ | 21.23 | $ | 18.11 | |||||||||
Low | $ | 20.57 | $ | 20.74 | $ | 16.21 | $ | 15.05 | |||||||||
Range of Price/Earnings Ratio (1): | |||||||||||||||||
High | 33 | 32 | 32 | 26 | |||||||||||||
Low | 26 | 30 | 24 | 22 | |||||||||||||
Year Ended December 31, 2012: | |||||||||||||||||
Net Revenues | $ | 1,215 | $ | 1,196 | $ | 1,283 | $ | 1,189 | |||||||||
Expenses Excluding Interest | $ | 871 | $ | 835 | $ | 851 | $ | 876 | |||||||||
Net Income | $ | 211 | $ | 247 | $ | 275 | $ | 195 | |||||||||
Net Income Available to Common Stockholders | $ | 189 | $ | 238 | $ | 261 | $ | 195 | |||||||||
Weighted Average Common Shares Outstanding – Diluted | 1,278 | 1,275 | 1,274 | 1,273 | |||||||||||||
Basic Earnings Per Common Share | $ | .15 | $ | .19 | $ | .20 | $ | .15 | |||||||||
Diluted Earnings Per Common Share | $ | .15 | $ | .19 | $ | .20 | $ | .15 | |||||||||
Dividends Declared Per Common Share | $ | .06 | $ | .06 | $ | .06 | $ | .06 | |||||||||
Range of Common Stock Price Per Share: | |||||||||||||||||
High | $ | 14.47 | $ | 14.43 | $ | 14.76 | $ | 15.38 | |||||||||
Low | $ | 12.50 | $ | 12.14 | $ | 11.83 | $ | 11.61 | |||||||||
Range of Price/Earnings Ratio (1): | |||||||||||||||||
High | 21 | 22 | 22 | 23 | |||||||||||||
Low | 18 | 18 | 18 | 18 | |||||||||||||
-1 | Price/earnings ratio is computed by dividing the high and low market prices by diluted earnings per common share for the preceding 12-month period ending on the last day of the quarter presented. | ||||||||||||||||
Introduction_and_Basis_of_Pres1
Introduction and Basis of Presentation (Details) | Dec. 31, 2013 |
state | |
item | |
Introduction and Basis of Presentation [Abstract] | ' |
Minimum number of domestic branch offices | 300 |
States with domestic branch offices | 45 |
Summary_of_Significant_Account2
Summary of Significant Accounting Policies (Narrative) (Details) | 12 Months Ended |
Dec. 31, 2013 | |
Equipment and office facilities [Member] | Minimum [Member] | ' |
Significant Accounting Policies [Line Items] | ' |
Estimated useful life, Property, Plant and Equipment | '5 years |
Equipment and office facilities [Member] | Maximum [Member] | ' |
Significant Accounting Policies [Line Items] | ' |
Estimated useful life, Property, Plant and Equipment | '10 years |
Buildings [Member] | Minimum [Member] | ' |
Significant Accounting Policies [Line Items] | ' |
Estimated useful life, Property, Plant and Equipment | '20 years |
Buildings [Member] | Maximum [Member] | ' |
Significant Accounting Policies [Line Items] | ' |
Estimated useful life, Property, Plant and Equipment | '40 years |
Software [Member] | Minimum [Member] | ' |
Significant Accounting Policies [Line Items] | ' |
Estimated useful life, Software and certain costs incurred for purchasing or developing software | '3 years |
Software [Member] | Maximum [Member] | ' |
Significant Accounting Policies [Line Items] | ' |
Estimated useful life, Software and certain costs incurred for purchasing or developing software | '5 years |
Receivables_from_Brokerage_Cli1
Receivables from Brokerage Clients (Narrative) (Details) (USD $) | 12 Months Ended | |
In Billions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Receivables from Brokerage Clients [Abstract] | ' | ' |
Margin loans to brokerage clients | $12.80 | $11.60 |
Average yield earned on margin loans | 3.68% | 4.08% |
Other_Securities_Owned_Summary
Other Securities Owned (Summary of Other Securities Owned) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Other Securities Owned [Line Items] | ' | ' |
Other securities owned | $517 | $636 |
Schwab Funds money market funds [Member] | ' | ' |
Other Securities Owned [Line Items] | ' | ' |
Other securities owned | 261 | 329 |
Equity and bond mutual funds [Member] | ' | ' |
Other Securities Owned [Line Items] | ' | ' |
Other securities owned | 208 | 217 |
State and municipal debt obligations [Member] | ' | ' |
Other Securities Owned [Line Items] | ' | ' |
Other securities owned | 32 | 48 |
Equity, U.S. Government and corporate debt, and other securities [Member] | ' | ' |
Other Securities Owned [Line Items] | ' | ' |
Other securities owned | $16 | $42 |
Securities_Available_for_Sale_2
Securities Available for Sale and Securities Held to Maturity (Narrative) (Details) (USD $) | 12 Months Ended | |||||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |||
item | ||||||
Securities Available for Sale and Securities Held to Maturity [Abstract] | ' | ' | ' | |||
Fair Isaac & Company minimum credit score for Prime loan origination | 620 | ' | ' | |||
Net impairment losses on securities | $10 | [1] | $32 | [1] | $31 | [1] |
Gross realized losses | $0 | $0 | $0 | |||
[1] | Net impairment losses on securities include total other-than-temporary impairment losses of $2Â million, $15Â million, and $18Â million recognized in other comprehensive (loss) income, net of $(8)Â million, $(17)Â million, and $(13)Â million reclassified from other comprehensive (loss) income in 2013, 2012, and 2011, respectively. |
Securities_Available_for_Sale_3
Securities Available for Sale and Securities Held to Maturity (Amortized Cost, Gross Unrealized Gains and Losses, and Fair Value of Securities Available for Sale) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | |
In Millions, unless otherwise specified | |||
Schedule of Available-for-sale Securities [Line Items] | ' | ' | |
Securities available for sale Amortized Cost | $51,604 | $45,644 | |
Securities available for sale Gross Unrealized Gains | 255 | 552 | |
Securities available for sale Gross Unrealized Losses | 241 | 73 | |
Securities available for sale | 51,618 | 46,123 | |
U.S. agency mortgage-backed securities [Member] | ' | ' | |
Schedule of Available-for-sale Securities [Line Items] | ' | ' | |
Securities available for sale Amortized Cost | 18,554 | 20,080 | |
Securities available for sale Gross Unrealized Gains | 140 | 396 | |
Securities available for sale Gross Unrealized Losses | 49 | ' | |
Securities available for sale | 18,645 | [1] | 20,476 |
Asset-backed securities [Member] | ' | ' | |
Schedule of Available-for-sale Securities [Line Items] | ' | ' | |
Securities available for sale Amortized Cost | 15,201 | 8,104 | |
Securities available for sale Gross Unrealized Gains | 42 | 62 | |
Securities available for sale Gross Unrealized Losses | 37 | 2 | |
Securities available for sale | 15,206 | 8,164 | |
Corporate debt securities [Member] | ' | ' | |
Schedule of Available-for-sale Securities [Line Items] | ' | ' | |
Securities available for sale Amortized Cost | 8,973 | 6,197 | |
Securities available for sale Gross Unrealized Gains | 49 | 61 | |
Securities available for sale Gross Unrealized Losses | 15 | 2 | |
Securities available for sale | 9,007 | 6,256 | |
Certificates of deposit [Member] | ' | ' | |
Schedule of Available-for-sale Securities [Line Items] | ' | ' | |
Securities available for sale Amortized Cost | 3,650 | 6,150 | |
Securities available for sale Gross Unrealized Gains | 4 | 12 | |
Securities available for sale Gross Unrealized Losses | 2 | 1 | |
Securities available for sale | 3,652 | 6,161 | |
U.S. agency notes [Member] | ' | ' | |
Schedule of Available-for-sale Securities [Line Items] | ' | ' | |
Securities available for sale Amortized Cost | 4,239 | 3,465 | |
Securities available for sale Gross Unrealized Gains | 1 | 2 | |
Securities available for sale Gross Unrealized Losses | 104 | 3 | |
Securities available for sale | 4,136 | 3,464 | |
Non-agency residential mortgage-backed securities [Member] | ' | ' | |
Schedule of Available-for-sale Securities [Line Items] | ' | ' | |
Securities available for sale Amortized Cost | 616 | 796 | |
Securities available for sale Gross Unrealized Gains | 11 | 2 | |
Securities available for sale Gross Unrealized Losses | 34 | 65 | |
Securities available for sale | 593 | [1] | 733 |
Non-agency commercial mortgage-backed securities [Member] | ' | ' | |
Schedule of Available-for-sale Securities [Line Items] | ' | ' | |
Securities available for sale Amortized Cost | 271 | ' | |
Securities available for sale Gross Unrealized Gains | 8 | ' | |
Securities available for sale | 279 | [1] | ' |
Commercial paper [Member] | ' | ' | |
Schedule of Available-for-sale Securities [Line Items] | ' | ' | |
Securities available for sale Amortized Cost | ' | 574 | |
Securities available for sale | ' | 574 | |
Other securities [Member] | ' | ' | |
Schedule of Available-for-sale Securities [Line Items] | ' | ' | |
Securities available for sale Amortized Cost | 100 | 278 | |
Securities available for sale Gross Unrealized Gains | ' | 17 | |
Securities available for sale | $100 | $295 | |
[1] | Mortgage-backed securities have been allocated to maturity groupings based on final contractual maturities. Actual maturities will differ from final contractual maturities because borrowers on a certain portion of loans underlying these securities have the right to prepay their obligations. |
Securities_Available_for_Sale_4
Securities Available for Sale and Securities Held to Maturity (Amortized Cost, Gross Unrealized Gains and Losses, and Fair Value of Securities Held to Maturity) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | |
In Millions, unless otherwise specified | |||
Schedule of Held-to-maturity Securities [Line Items] | ' | ' | |
Securities held to maturity | $30,318 | $18,194 | |
Securities held to maturity Gross Unrealized Gains | 161 | 558 | |
Securities held to maturity Gross Unrealized Losses | 989 | 20 | |
Securities held to maturity, fair value | 29,490 | 18,732 | |
U.S. agency mortgage-backed securities [Member] | ' | ' | |
Schedule of Held-to-maturity Securities [Line Items] | ' | ' | |
Securities held to maturity | 29,260 | 17,750 | |
Securities held to maturity Gross Unrealized Gains | 161 | 558 | |
Securities held to maturity Gross Unrealized Losses | 921 | 19 | |
Securities held to maturity, fair value | 28,500 | [1] | 18,289 |
Non-agency commercial mortgage-backed securities [Member] | ' | ' | |
Schedule of Held-to-maturity Securities [Line Items] | ' | ' | |
Securities held to maturity | 958 | ' | |
Securities held to maturity Gross Unrealized Losses | 68 | ' | |
Securities held to maturity, fair value | 890 | [1] | ' |
Other securities [Member] | ' | ' | |
Schedule of Held-to-maturity Securities [Line Items] | ' | ' | |
Securities held to maturity | 100 | 444 | |
Securities held to maturity Gross Unrealized Losses | ' | 1 | |
Securities held to maturity, fair value | $100 | $443 | |
[1] | Mortgage-backed securities have been allocated to maturity groupings based on final contractual maturities. Actual maturities will differ from final contractual maturities because borrowers on a certain portion of loans underlying these securities have the right to prepay their obligations. |
Securities_Available_for_Sale_5
Securities Available for Sale and Securities Held to Maturity (Available For Sale Securities with Unrealized Losses, Aggregated by Category and Period of Continuous Unrealized Loss) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | security | security |
Schedule Of Available For Sale Securities [Line Items] | ' | ' |
Securities available for sale Less than 12 months Fair Value | $16,962 | $3,625 |
Securities available for sale Less than 12 months Unrealized Losses | 200 | 7 |
Securities available for sale 12 months or longer Fair Value | 1,856 | 1,350 |
Securities available for sale 12 months or longer Unrealized Losses | 41 | 66 |
Total Securities available for sale with unrealized losses Total Fair Value | 18,818 | 4,975 |
Total Securities available for sale with unrealized losses Total Unrealized Losses | 241 | 73 |
Number of available for sale securities in unrealized loss positions | 273 | 139 |
U.S. agency mortgage-backed securities [Member] | ' | ' |
Schedule Of Available For Sale Securities [Line Items] | ' | ' |
Securities available for sale Less than 12 months Fair Value | 5,044 | ' |
Securities available for sale Less than 12 months Unrealized Losses | 47 | ' |
Securities available for sale 12 months or longer Fair Value | 93 | ' |
Securities available for sale 12 months or longer Unrealized Losses | 2 | ' |
Total Securities available for sale with unrealized losses Total Fair Value | 5,137 | ' |
Total Securities available for sale with unrealized losses Total Unrealized Losses | 49 | ' |
Asset-backed securities [Member] | ' | ' |
Schedule Of Available For Sale Securities [Line Items] | ' | ' |
Securities available for sale Less than 12 months Fair Value | 6,391 | ' |
Securities available for sale Less than 12 months Unrealized Losses | 33 | ' |
Securities available for sale 12 months or longer Fair Value | 591 | 801 |
Securities available for sale 12 months or longer Unrealized Losses | 4 | 2 |
Total Securities available for sale with unrealized losses Total Fair Value | 6,982 | 801 |
Total Securities available for sale with unrealized losses Total Unrealized Losses | 37 | 2 |
Corporate debt securities [Member] | ' | ' |
Schedule Of Available For Sale Securities [Line Items] | ' | ' |
Securities available for sale Less than 12 months Fair Value | 1,802 | 878 |
Securities available for sale Less than 12 months Unrealized Losses | 14 | 2 |
Securities available for sale 12 months or longer Fair Value | 499 | ' |
Securities available for sale 12 months or longer Unrealized Losses | 1 | ' |
Total Securities available for sale with unrealized losses Total Fair Value | 2,301 | 878 |
Total Securities available for sale with unrealized losses Total Unrealized Losses | 15 | 2 |
Certificates of deposit [Member] | ' | ' |
Schedule Of Available For Sale Securities [Line Items] | ' | ' |
Securities available for sale Less than 12 months Fair Value | ' | 599 |
Securities available for sale Less than 12 months Unrealized Losses | ' | 1 |
Securities available for sale 12 months or longer Fair Value | 299 | ' |
Securities available for sale 12 months or longer Unrealized Losses | 2 | ' |
Total Securities available for sale with unrealized losses Total Fair Value | 299 | 599 |
Total Securities available for sale with unrealized losses Total Unrealized Losses | 2 | 1 |
U.S. agency notes [Member] | ' | ' |
Schedule Of Available For Sale Securities [Line Items] | ' | ' |
Securities available for sale Less than 12 months Fair Value | 3,636 | 2,102 |
Securities available for sale Less than 12 months Unrealized Losses | 104 | 3 |
Total Securities available for sale with unrealized losses Total Fair Value | 3,636 | 2,102 |
Total Securities available for sale with unrealized losses Total Unrealized Losses | 104 | 3 |
Non-agency residential mortgage-backed securities [Member] | ' | ' |
Schedule Of Available For Sale Securities [Line Items] | ' | ' |
Securities available for sale Less than 12 months Fair Value | 89 | 46 |
Securities available for sale Less than 12 months Unrealized Losses | 2 | 1 |
Securities available for sale 12 months or longer Fair Value | 374 | 549 |
Securities available for sale 12 months or longer Unrealized Losses | 32 | 64 |
Total Securities available for sale with unrealized losses Total Fair Value | 463 | 595 |
Total Securities available for sale with unrealized losses Total Unrealized Losses | $34 | $65 |
Securities_Available_for_Sale_6
Securities Available for Sale and Securities Held to Maturity (Held To Maturity Securities with Unrealized Losses, Aggregated by Category and Period of Continuous Unrealized Loss) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | security | security |
Schedule of Held-to-maturity Securities [Line Items] | ' | ' |
Securities held to maturity Less than 12 months Fair Value | $19,805 | $2,920 |
Securities held to maturity Less than 12 months Unrealized Losses | 741 | 20 |
Securities held to maturity 12 months or longer Fair Value | 2,605 | ' |
Securities held to maturity 12 months or longer Unrealized Losses | 248 | ' |
Total Securities held to maturity with unrealized losses Total Fair Value | 22,410 | 2,920 |
Total Securities held to maturity with unrealized losses Total Unrealized Losses | 989 | 20 |
Number of held to maturity securities in unrealized loss positions | 193 | 24 |
U.S. agency mortgage-backed securities [Member] | ' | ' |
Schedule of Held-to-maturity Securities [Line Items] | ' | ' |
Securities held to maturity Less than 12 months Fair Value | 19,175 | 2,680 |
Securities held to maturity Less than 12 months Unrealized Losses | 698 | 19 |
Securities held to maturity 12 months or longer Fair Value | 2,345 | ' |
Securities held to maturity 12 months or longer Unrealized Losses | 223 | ' |
Total Securities held to maturity with unrealized losses Total Fair Value | 21,520 | 2,680 |
Total Securities held to maturity with unrealized losses Total Unrealized Losses | 921 | 19 |
Non-agency commercial mortgage-backed securities [Member] | ' | ' |
Schedule of Held-to-maturity Securities [Line Items] | ' | ' |
Securities held to maturity Less than 12 months Fair Value | 630 | ' |
Securities held to maturity Less than 12 months Unrealized Losses | 43 | ' |
Securities held to maturity 12 months or longer Fair Value | 260 | ' |
Securities held to maturity 12 months or longer Unrealized Losses | 25 | ' |
Total Securities held to maturity with unrealized losses Total Fair Value | 890 | ' |
Total Securities held to maturity with unrealized losses Total Unrealized Losses | 68 | ' |
Other securities [Member] | ' | ' |
Schedule of Held-to-maturity Securities [Line Items] | ' | ' |
Securities held to maturity Less than 12 months Fair Value | ' | 240 |
Securities held to maturity Less than 12 months Unrealized Losses | ' | 1 |
Total Securities held to maturity with unrealized losses Total Fair Value | ' | 240 |
Total Securities held to maturity with unrealized losses Total Unrealized Losses | ' | $1 |
Securities_Available_for_Sale_7
Securities Available for Sale and Securities Held to Maturity (Securities with Unrealized Losses, Aggregated by Category and Period of Continuous Unrealized Loss) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | ||
In Millions, unless otherwise specified | ||||
Securities Available for Sale and Securities Held to Maturity [Abstract] | ' | ' | ||
Securities available for sale Less than 12 months Fair Value | $16,962 | $3,625 | ||
Securities available for sale Less than 12 months Unrealized Losses | 200 | 7 | ||
Securities available for sale 12 months or longer Fair Value | 1,856 | 1,350 | ||
Securities available for sale 12 months or longer Unrealized Losses | 41 | 66 | ||
Total Securities available for sale with unrealized losses Total Fair Value | 18,818 | 4,975 | ||
Total Securities available for sale with unrealized losses Total Unrealized Losses | 241 | 73 | ||
Securities held to maturity Less than 12 months Fair Value | 19,805 | 2,920 | ||
Securities held to maturity Less than 12 months Unrealized Losses | 741 | 20 | ||
Securities held to maturity 12 months or longer Fair Value | 2,605 | ' | ||
Securities held to maturity 12 months or longer Unrealized Losses | 248 | ' | ||
Total Securities held to maturity with unrealized losses Total Fair Value | 22,410 | 2,920 | ||
Total Securities held to maturity with unrealized losses Total Unrealized Losses | 989 | 20 | ||
Securities Less than 12 months Fair Value | 36,767 | [1] | 6,545 | [2] |
Securities Less than 12 months Unrealized Losses | 941 | [1] | 27 | [2] |
Securities 12 months or longer Fair Value | 4,461 | [1] | 1,350 | [2] |
Securities 12 months or longer Unrealized Losses | 289 | [1] | 66 | [2] |
Total securities with unrealized losses Total Fair Value | 41,228 | [1] | 7,895 | [2] |
Total securities with unrealized losses Total Unrealized Losses | $1,230 | [1] | $93 | [2] |
[1] | The number of investment positions with unrealized losses totaled 273 for securities available for sale and 193 for securities held to maturity. | |||
[2] | The number of investment positions with unrealized losses totaled 139 for securities available for sale and 24 for securities held to maturity. |
Securities_Available_for_Sale_8
Securities Available for Sale and Securities Held to Maturity (Rollforward Amount of Credit Losses Recognized in Earnings for OTTI Securities for Portion of Impairment Recognized in or Reclassified From Other Comprehensive (Loss) Income) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Securities Available for Sale and Securities Held to Maturity [Abstract] | ' | ' | ' |
Balance at beginning of year | $159 | $127 | $96 |
Credit losses recognized into current period earnings on debt securities for which an other-than-temporary impairment was not previously recognized | 1 | 6 | 6 |
Credit losses recognized into current period earnings on debt securities for which an other-than-temporary impairment was previously recognized | 9 | 26 | 25 |
Balance at end of year | $169 | $159 | $127 |
Securities_Available_for_Sale_9
Securities Available for Sale and Securities Held to Maturity (Maturities of Securities Available for Sale) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | |
In Millions, unless otherwise specified | |||
Schedule of Available-for-sale Securities [Line Items] | ' | ' | |
Securities available for sale fair value Within 1 year | $3,274 | ' | |
Securities available for sale fair value After 1 year through 5 years | 15,007 | ' | |
Securities available for sale fair value After 5 years through 10 years | 8,087 | ' | |
Securities available for sale fair value After 10 years | 25,250 | ' | |
Securities available for sale | 51,618 | 46,123 | |
Securities available for sale Within 1 year amortized cost | 3,270 | ' | |
Securities available for sale After 1 year through 5 years amortized cost | 15,062 | ' | |
Securities available for sale After 5 years through 10 years amortized cost | 8,041 | ' | |
Securities available for sale After 10 years amortized cost | 25,231 | ' | |
Securities available for sale Amortized Cost | 51,604 | 45,644 | |
U.S. agency mortgage-backed securities [Member] | ' | ' | |
Schedule of Available-for-sale Securities [Line Items] | ' | ' | |
Securities available for sale fair value After 1 year through 5 years | 508 | [1] | ' |
Securities available for sale fair value After 5 years through 10 years | 4,458 | [1] | ' |
Securities available for sale fair value After 10 years | 13,679 | [1] | ' |
Securities available for sale | 18,645 | [1] | 20,476 |
Securities available for sale Amortized Cost | 18,554 | 20,080 | |
Asset-backed securities [Member] | ' | ' | |
Schedule of Available-for-sale Securities [Line Items] | ' | ' | |
Securities available for sale fair value After 1 year through 5 years | 1,219 | ' | |
Securities available for sale fair value After 5 years through 10 years | 3,284 | ' | |
Securities available for sale fair value After 10 years | 10,703 | ' | |
Securities available for sale | 15,206 | 8,164 | |
Securities available for sale Amortized Cost | 15,201 | 8,104 | |
Corporate debt securities [Member] | ' | ' | |
Schedule of Available-for-sale Securities [Line Items] | ' | ' | |
Securities available for sale fair value Within 1 year | 1,348 | ' | |
Securities available for sale fair value After 1 year through 5 years | 7,554 | ' | |
Securities available for sale fair value After 5 years through 10 years | 105 | ' | |
Securities available for sale | 9,007 | 6,256 | |
Securities available for sale Amortized Cost | 8,973 | 6,197 | |
U.S. agency notes [Member] | ' | ' | |
Schedule of Available-for-sale Securities [Line Items] | ' | ' | |
Securities available for sale fair value After 1 year through 5 years | 3,896 | ' | |
Securities available for sale fair value After 5 years through 10 years | 240 | ' | |
Securities available for sale | 4,136 | 3,464 | |
Securities available for sale Amortized Cost | 4,239 | 3,465 | |
Certificates of deposit [Member] | ' | ' | |
Schedule of Available-for-sale Securities [Line Items] | ' | ' | |
Securities available for sale fair value Within 1 year | 1,826 | ' | |
Securities available for sale fair value After 1 year through 5 years | 1,826 | ' | |
Securities available for sale | 3,652 | 6,161 | |
Securities available for sale Amortized Cost | 3,650 | 6,150 | |
Non-agency residential mortgage-backed securities [Member] | ' | ' | |
Schedule of Available-for-sale Securities [Line Items] | ' | ' | |
Securities available for sale fair value After 1 year through 5 years | 4 | [1] | ' |
Securities available for sale fair value After 10 years | 589 | [1] | ' |
Securities available for sale | 593 | [1] | 733 |
Securities available for sale Amortized Cost | 616 | 796 | |
Non-agency commercial mortgage-backed securities [Member] | ' | ' | |
Schedule of Available-for-sale Securities [Line Items] | ' | ' | |
Securities available for sale fair value After 10 years | 279 | [1] | ' |
Securities available for sale | 279 | [1] | ' |
Securities available for sale Amortized Cost | 271 | ' | |
Other securities [Member] | ' | ' | |
Schedule of Available-for-sale Securities [Line Items] | ' | ' | |
Securities available for sale fair value Within 1 year | 100 | ' | |
Securities available for sale | 100 | 295 | |
Securities available for sale Amortized Cost | $100 | $278 | |
[1] | Mortgage-backed securities have been allocated to maturity groupings based on final contractual maturities. Actual maturities will differ from final contractual maturities because borrowers on a certain portion of loans underlying these securities have the right to prepay their obligations. |
Recovered_Sheet1
Securities Available for Sale and Securities Held to Maturity (Maturities of Securities Held to Maturity) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | |
In Millions, unless otherwise specified | |||
Schedule of Held-to-maturity Securities [Line Items] | ' | ' | |
Securities held to maturity Within 1 year | $100 | ' | |
Securities held to maturity After 1 year through 5 years | 555 | ' | |
Securities held to maturity After 5 years through 10 years | 12,322 | ' | |
Securities held to maturity After 10 years | 16,513 | ' | |
Securities held to maturity, fair value | 29,490 | 18,732 | |
Securities held to maturity Within 1 year amortized cost | 100 | ' | |
Securities held to maturity After 1 year through 5 years amortized cost | 550 | ' | |
Securities held to maturity After 5 years through 10 years amortized cost | 12,894 | ' | |
Securities held to maturity After 10 years amortized cost | 16,774 | ' | |
Securities held to maturity | 30,318 | 18,194 | |
U.S. agency mortgage-backed securities [Member] | ' | ' | |
Schedule of Held-to-maturity Securities [Line Items] | ' | ' | |
Securities held to maturity After 1 year through 5 years | 555 | [1] | ' |
Securities held to maturity After 5 years through 10 years | 11,985 | [1] | ' |
Securities held to maturity After 10 years | 15,960 | [1] | ' |
Securities held to maturity, fair value | 28,500 | [1] | 18,289 |
Securities held to maturity | 29,260 | 17,750 | |
Non-agency commercial mortgage-backed securities [Member] | ' | ' | |
Schedule of Held-to-maturity Securities [Line Items] | ' | ' | |
Securities held to maturity After 5 years through 10 years | 337 | [1] | ' |
Securities held to maturity After 10 years | 553 | [1] | ' |
Securities held to maturity, fair value | 890 | [1] | ' |
Securities held to maturity | 958 | ' | |
Other securities [Member] | ' | ' | |
Schedule of Held-to-maturity Securities [Line Items] | ' | ' | |
Securities held to maturity Within 1 year | 100 | ' | |
Securities held to maturity, fair value | 100 | 443 | |
Securities held to maturity | $100 | $444 | |
[1] | Mortgage-backed securities have been allocated to maturity groupings based on final contractual maturities. Actual maturities will differ from final contractual maturities because borrowers on a certain portion of loans underlying these securities have the right to prepay their obligations. |
Recovered_Sheet2
Securities Available for Sale and Securities Held to Maturity (Proceeds and Gross Realized Gains from Sales of Securities Available for Sale) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Securities Available for Sale and Securities Held to Maturity [Abstract] | ' | ' | ' |
Proceeds | $6,167 | $3,336 | $500 |
Gross realized gains | $7 | $35 | $1 |
Loans_to_Banking_Clients_and_R2
Loans to Banking Clients and Related Allowance for Loan Losses (Narrative) (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Loans Receivable [Line Items] | ' | ' |
Commitments to extend credit related to unused home equity lines of credit, personal loans secured by securities, and other lines of credit | $5,700,000,000 | $5,400,000,000 |
Total nonaccrual loans | 48,000,000 | 48,000,000 |
Loans accruing interest contractually 90 days or more past due | 0 | 0 |
Nonperforming assets, including nonaccrual loans and other real estate owned | 53,000,000 | 54,000,000 |
Minimum fair value percentage of collateral to principal amount of loan | 100.00% | 100.00% |
First Mortgage [Member] | ' | ' |
Loans Receivable [Line Items] | ' | ' |
Purchased first mortgages and HELOCs | 3,500,000,000 | 3,000,000,000 |
Home equity lines of credit [Member] | ' | ' |
Loans Receivable [Line Items] | ' | ' |
Purchased first mortgages and HELOCs | $917,000,000 | $411,000,000 |
Loans_to_Banking_Clients_and_R3
Loans to Banking Clients and Related Allowance for Loan Losses (Composition of Loans to Banking Clients by Loan Segment) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | ||
In Millions, unless otherwise specified | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' | ' | ||
Loans to banking clients | $12,467 | [1] | $10,782 | [1] | ' | ' |
Allowance for loan losses | -48 | -56 | -54 | -53 | ||
Total loans to banking clients - net | 12,419 | 10,726 | ' | ' | ||
Residential real estate mortgages [Member] | ' | ' | ' | ' | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' | ' | ||
Loans to banking clients | 8,006 | 6,507 | ' | ' | ||
Allowance for loan losses | -34 | -36 | -40 | -38 | ||
Home equity lines of credit [Member] | ' | ' | ' | ' | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' | ' | ||
Loans to banking clients | 3,041 | 3,287 | ' | ' | ||
Allowance for loan losses | -14 | -20 | -14 | -15 | ||
Personal loans secured by securities [Member] | ' | ' | ' | ' | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' | ' | ||
Loans to banking clients | 1,384 | 963 | ' | ' | ||
Other [Member] | ' | ' | ' | ' | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' | ' | ||
Loans to banking clients | $36 | $25 | ' | ' | ||
[1] | Loans are evaluated for impairment by loan segment. |
Loans_to_Banking_Clients_and_R4
Loans to Banking Clients and Related Allowance for Loan Losses (Changes in Allowance for Loan Losses) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Financing Receivable, Allowance for Credit Losses [Line Items] | ' | ' | ' |
Balance at beginning of year | $56 | $54 | $53 |
Charge-offs | -11 | -16 | -19 |
Recoveries | 4 | 2 | 2 |
Provision for loan losses | -1 | 16 | 18 |
Balance at end of year | 48 | 56 | 54 |
Residential real estate mortgages [Member] | ' | ' | ' |
Financing Receivable, Allowance for Credit Losses [Line Items] | ' | ' | ' |
Balance at beginning of year | 36 | 40 | 38 |
Charge-offs | -5 | -7 | -11 |
Recoveries | 2 | 2 | 1 |
Provision for loan losses | 1 | 1 | 12 |
Balance at end of year | 34 | 36 | 40 |
Home equity lines of credit [Member] | ' | ' | ' |
Financing Receivable, Allowance for Credit Losses [Line Items] | ' | ' | ' |
Balance at beginning of year | 20 | 14 | 15 |
Charge-offs | -6 | -9 | -8 |
Recoveries | 2 | ' | 1 |
Provision for loan losses | -2 | 15 | 6 |
Balance at end of year | $14 | $20 | $14 |
Loans_to_Banking_Clients_and_R5
Loans to Banking Clients and Related Allowance for Loan Losses (Delinquency Analysis by Loan Class) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | ||
In Millions, unless otherwise specified | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' | ||
Current | $12,407 | $10,699 | ||
30-59 days past due | 6 | 31 | ||
60-89 days past due | 6 | 4 | ||
>90 days past due and other nonaccrual loans | 48 | 48 | ||
Total past due | 60 | 83 | ||
Total loans | 12,467 | [1] | 10,782 | [1] |
Residential real estate mortgages, first mortgages [Member] | ' | ' | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' | ||
Current | 7,808 | 6,291 | ||
30-59 days past due | 3 | 22 | ||
60-89 days past due | 4 | 2 | ||
>90 days past due and other nonaccrual loans | 30 | 33 | ||
Total past due | 37 | 57 | ||
Total loans | 7,845 | 6,348 | ||
Residential real estate mortgages, purchased first mortgages [Member] | ' | ' | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' | ||
Current | 154 | 154 | ||
30-59 days past due | 1 | 1 | ||
>90 days past due and other nonaccrual loans | 6 | 4 | ||
Total past due | 7 | 5 | ||
Total loans | 161 | 159 | ||
Home equity lines of credit [Member] | ' | ' | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' | ||
Current | 3,025 | 3,269 | ||
30-59 days past due | 2 | 5 | ||
60-89 days past due | 2 | 2 | ||
>90 days past due and other nonaccrual loans | 12 | 11 | ||
Total past due | 16 | 18 | ||
Total loans | 3,041 | 3,287 | ||
Personal loans secured by securities [Member] | ' | ' | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' | ||
Current | 1,384 | 963 | ||
Total loans | 1,384 | 963 | ||
Other [Member] | ' | ' | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' | ||
Current | 36 | 22 | ||
30-59 days past due | ' | 3 | ||
Total past due | ' | 3 | ||
Total loans | $36 | $25 | ||
[1] | Loans are evaluated for impairment by loan segment. |
Loans_to_Banking_Clients_and_R6
Loans to Banking Clients and Related Allowance for Loan Losses (Credit Quality of Residential Real Estate Mortgages and HELOCs by Reviewing FICO Scores at Origination, Current FICO Scores, Loan-To-Value Ratio) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | ||
In Millions, unless otherwise specified | ||||
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ||
Loans to banking clients | $12,467 | [1] | $10,782 | [1] |
Residential real estate mortgages, first mortgages [Member] | ' | ' | ||
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ||
Loans to banking clients | 7,845 | 6,348 | ||
Residential real estate mortgages, purchased first mortgages [Member] | ' | ' | ||
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ||
Loans to banking clients | 161 | 159 | ||
Residential real estate mortgages [Member] | ' | ' | ||
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ||
Loans to banking clients | 8,006 | 6,507 | ||
Weighted Average Updated FICO | 772 | 768 | ||
Percent of Loans that are 90+ Days Past Due and Less than 90 Days Past Due but on Nonaccrual Status | 0.26% | 0.38% | ||
Home equity lines of credit [Member] | ' | ' | ||
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ||
Loans to banking clients | 3,041 | 3,287 | ||
Weighted Average Updated FICO | 769 | 767 | ||
Utilization Rate | 39.00% | [2] | 42.00% | [2] |
Percent of Loans that are 90+ Days Past Due and Less than 90 Days Past Due but on Nonaccrual Status | 0.24% | 0.31% | ||
Year of origination Pre 2009 [Member] | Residential real estate mortgages, first mortgages [Member] | ' | ' | ||
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ||
Loans to banking clients | 674 | 867 | ||
Year of origination Pre 2009 [Member] | Residential real estate mortgages, purchased first mortgages [Member] | ' | ' | ||
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ||
Loans to banking clients | 51 | 62 | ||
Year of origination Pre 2009 [Member] | Residential real estate mortgages [Member] | ' | ' | ||
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ||
Loans to banking clients | 725 | 929 | ||
Year of origination Pre 2009 [Member] | Home equity lines of credit [Member] | ' | ' | ||
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ||
Loans to banking clients | 2,044 | 2,338 | ||
Year of origination 2009 [Member] | Residential real estate mortgages, first mortgages [Member] | ' | ' | ||
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ||
Loans to banking clients | 185 | 305 | ||
Year of origination 2009 [Member] | Residential real estate mortgages, purchased first mortgages [Member] | ' | ' | ||
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ||
Loans to banking clients | 4 | 6 | ||
Year of origination 2009 [Member] | Residential real estate mortgages [Member] | ' | ' | ||
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ||
Loans to banking clients | 189 | 311 | ||
Year of origination 2009 [Member] | Home equity lines of credit [Member] | ' | ' | ||
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ||
Loans to banking clients | 260 | 338 | ||
Year of origination 2010 [Member] | Residential real estate mortgages, first mortgages [Member] | ' | ' | ||
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ||
Loans to banking clients | 503 | 909 | ||
Year of origination 2010 [Member] | Residential real estate mortgages, purchased first mortgages [Member] | ' | ' | ||
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ||
Loans to banking clients | 7 | 12 | ||
Year of origination 2010 [Member] | Residential real estate mortgages [Member] | ' | ' | ||
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ||
Loans to banking clients | 510 | 921 | ||
Year of origination 2010 [Member] | Home equity lines of credit [Member] | ' | ' | ||
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ||
Loans to banking clients | 191 | 249 | ||
Year of origination 2011 [Member] | Residential real estate mortgages, first mortgages [Member] | ' | ' | ||
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ||
Loans to banking clients | 733 | 1,270 | ||
Year of origination 2011 [Member] | Residential real estate mortgages, purchased first mortgages [Member] | ' | ' | ||
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ||
Loans to banking clients | 38 | 53 | ||
Year of origination 2011 [Member] | Residential real estate mortgages [Member] | ' | ' | ||
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ||
Loans to banking clients | 771 | 1,323 | ||
Year of origination 2011 [Member] | Home equity lines of credit [Member] | ' | ' | ||
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ||
Loans to banking clients | 155 | 198 | ||
Year of origination 2012 [Member] | Residential real estate mortgages, first mortgages [Member] | ' | ' | ||
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ||
Loans to banking clients | 2,403 | 2,997 | ||
Year of origination 2012 [Member] | Residential real estate mortgages, purchased first mortgages [Member] | ' | ' | ||
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ||
Loans to banking clients | 26 | 26 | ||
Year of origination 2012 [Member] | Residential real estate mortgages [Member] | ' | ' | ||
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ||
Loans to banking clients | 2,429 | 3,023 | ||
Year of origination 2012 [Member] | Home equity lines of credit [Member] | ' | ' | ||
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ||
Loans to banking clients | 162 | 164 | ||
Year of origination 2013 [Member] | Residential real estate mortgages, first mortgages [Member] | ' | ' | ||
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ||
Loans to banking clients | 3,347 | ' | ||
Year of origination 2013 [Member] | Residential real estate mortgages, purchased first mortgages [Member] | ' | ' | ||
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ||
Loans to banking clients | 35 | ' | ||
Year of origination 2013 [Member] | Residential real estate mortgages [Member] | ' | ' | ||
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ||
Loans to banking clients | 3,382 | ' | ||
Year of origination 2013 [Member] | Home equity lines of credit [Member] | ' | ' | ||
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ||
Loans to banking clients | 229 | ' | ||
Origination FICO Score Below 620 [Member] | Residential real estate mortgages, first mortgages [Member] | ' | ' | ||
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ||
Loans to banking clients | 10 | 10 | ||
Origination FICO Score Below 620 [Member] | Residential real estate mortgages, purchased first mortgages [Member] | ' | ' | ||
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ||
Loans to banking clients | 1 | 1 | ||
Origination FICO Score Below 620 [Member] | Residential real estate mortgages [Member] | ' | ' | ||
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ||
Loans to banking clients | 11 | 11 | ||
Origination FICO Score 620 Through 679 [Member] | Residential real estate mortgages, first mortgages [Member] | ' | ' | ||
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ||
Loans to banking clients | 96 | 98 | ||
Origination FICO Score 620 Through 679 [Member] | Residential real estate mortgages, purchased first mortgages [Member] | ' | ' | ||
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ||
Loans to banking clients | 14 | 16 | ||
Origination FICO Score 620 Through 679 [Member] | Residential real estate mortgages [Member] | ' | ' | ||
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ||
Loans to banking clients | 110 | 114 | ||
Origination FICO Score 620 Through 679 [Member] | Home equity lines of credit [Member] | ' | ' | ||
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ||
Loans to banking clients | 20 | 23 | ||
Origination FICO Score 680 Through 739 [Member] | Residential real estate mortgages, first mortgages [Member] | ' | ' | ||
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ||
Loans to banking clients | 1,352 | 1,141 | ||
Origination FICO Score 680 Through 739 [Member] | Residential real estate mortgages, purchased first mortgages [Member] | ' | ' | ||
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ||
Loans to banking clients | 32 | 40 | ||
Origination FICO Score 680 Through 739 [Member] | Residential real estate mortgages [Member] | ' | ' | ||
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ||
Loans to banking clients | 1,384 | 1,181 | ||
Origination FICO Score 680 Through 739 [Member] | Home equity lines of credit [Member] | ' | ' | ||
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ||
Loans to banking clients | 576 | 633 | ||
Origination FICO Score 740 And Above [Member] | Residential real estate mortgages, first mortgages [Member] | ' | ' | ||
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ||
Loans to banking clients | 6,387 | 5,099 | ||
Origination FICO Score 740 And Above [Member] | Residential real estate mortgages, purchased first mortgages [Member] | ' | ' | ||
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ||
Loans to banking clients | 114 | 102 | ||
Origination FICO Score 740 And Above [Member] | Residential real estate mortgages [Member] | ' | ' | ||
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ||
Loans to banking clients | 6,501 | 5,201 | ||
Origination FICO Score 740 And Above [Member] | Home equity lines of credit [Member] | ' | ' | ||
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ||
Loans to banking clients | 2,445 | 2,631 | ||
Updated FICO Score Below 620 [Member] | Residential real estate mortgages, first mortgages [Member] | ' | ' | ||
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ||
Loans to banking clients | 50 | 54 | ||
Updated FICO Score Below 620 [Member] | Residential real estate mortgages, purchased first mortgages [Member] | ' | ' | ||
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ||
Loans to banking clients | 5 | 6 | ||
Updated FICO Score Below 620 [Member] | Residential real estate mortgages [Member] | ' | ' | ||
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ||
Loans to banking clients | 55 | 60 | ||
Updated FICO Score Below 620 [Member] | Home equity lines of credit [Member] | ' | ' | ||
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ||
Loans to banking clients | 42 | 49 | ||
Updated FICO Score 620 Through 679 [Member] | Residential real estate mortgages, first mortgages [Member] | ' | ' | ||
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ||
Loans to banking clients | 209 | 191 | ||
Updated FICO Score 620 Through 679 [Member] | Residential real estate mortgages, purchased first mortgages [Member] | ' | ' | ||
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ||
Loans to banking clients | 10 | 13 | ||
Updated FICO Score 620 Through 679 [Member] | Residential real estate mortgages [Member] | ' | ' | ||
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ||
Loans to banking clients | 219 | 204 | ||
Updated FICO Score 620 Through 679 [Member] | Home equity lines of credit [Member] | ' | ' | ||
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ||
Loans to banking clients | 106 | 117 | ||
Updated FICO Score 680 Through 739 [Member] | Residential real estate mortgages, first mortgages [Member] | ' | ' | ||
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ||
Loans to banking clients | 1,012 | 940 | ||
Updated FICO Score 680 Through 739 [Member] | Residential real estate mortgages, purchased first mortgages [Member] | ' | ' | ||
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ||
Loans to banking clients | 29 | 34 | ||
Updated FICO Score 680 Through 739 [Member] | Residential real estate mortgages [Member] | ' | ' | ||
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ||
Loans to banking clients | 1,041 | 974 | ||
Updated FICO Score 680 Through 739 [Member] | Home equity lines of credit [Member] | ' | ' | ||
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ||
Loans to banking clients | 453 | 510 | ||
Updated FICO Score 740 And Above [Member] | Residential real estate mortgages, first mortgages [Member] | ' | ' | ||
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ||
Loans to banking clients | 6,574 | 5,163 | ||
Updated FICO Score 740 And Above [Member] | Residential real estate mortgages, purchased first mortgages [Member] | ' | ' | ||
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ||
Loans to banking clients | 117 | 106 | ||
Updated FICO Score 740 And Above [Member] | Residential real estate mortgages [Member] | ' | ' | ||
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ||
Loans to banking clients | 6,691 | 5,269 | ||
Updated FICO Score 740 And Above [Member] | Home equity lines of credit [Member] | ' | ' | ||
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ||
Loans to banking clients | 2,440 | 2,611 | ||
Origination Loan To Value Ratio 70% And Below [Member] | Residential real estate mortgages, first mortgages [Member] | ' | ' | ||
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ||
Loans to banking clients | 5,306 | 4,189 | ||
Origination Loan To Value Ratio 70% And Below [Member] | Residential real estate mortgages, purchased first mortgages [Member] | ' | ' | ||
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ||
Loans to banking clients | 110 | 97 | ||
Origination Loan To Value Ratio 70% And Below [Member] | Residential real estate mortgages [Member] | ' | ' | ||
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ||
Loans to banking clients | 5,416 | 4,286 | ||
Origination Loan To Value Ratio 70% And Below [Member] | Home equity lines of credit [Member] | ' | ' | ||
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ||
Loans to banking clients | 2,040 | 2,225 | ||
Origination Loan to Value Ratio Greater Than 70% Through 90% [Member] | Residential real estate mortgages, first mortgages [Member] | ' | ' | ||
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ||
Loans to banking clients | 2,523 | 2,142 | ||
Origination Loan to Value Ratio Greater Than 70% Through 90% [Member] | Residential real estate mortgages, purchased first mortgages [Member] | ' | ' | ||
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ||
Loans to banking clients | 45 | 54 | ||
Origination Loan to Value Ratio Greater Than 70% Through 90% [Member] | Residential real estate mortgages [Member] | ' | ' | ||
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ||
Loans to banking clients | 2,568 | 2,196 | ||
Origination Loan to Value Ratio Greater Than 70% Through 90% [Member] | Home equity lines of credit [Member] | ' | ' | ||
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ||
Loans to banking clients | 977 | 1,036 | ||
Origination Loan to Value Ratio Greater Than 90% Through 100% [Member] | Residential real estate mortgages, first mortgages [Member] | ' | ' | ||
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ||
Loans to banking clients | 16 | 17 | ||
Origination Loan to Value Ratio Greater Than 90% Through 100% [Member] | Residential real estate mortgages, purchased first mortgages [Member] | ' | ' | ||
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ||
Loans to banking clients | 6 | 8 | ||
Origination Loan to Value Ratio Greater Than 90% Through 100% [Member] | Residential real estate mortgages [Member] | ' | ' | ||
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ||
Loans to banking clients | 22 | 25 | ||
Origination Loan to Value Ratio Greater Than 90% Through 100% [Member] | Home equity lines of credit [Member] | ' | ' | ||
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ||
Loans to banking clients | 24 | 26 | ||
Estimated Current LTV 70% And Below [Member] | Residential real estate mortgages [Member] | ' | ' | ||
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ||
Loans to banking clients | 6,649 | 4,162 | ||
Weighted Average Updated FICO | 775 | 772 | ||
Percent of Loans that are 90+ Days Past Due and Less than 90 Days Past Due but on Nonaccrual Status | 0.05% | 0.05% | ||
Estimated Current LTV 70% And Below [Member] | Home equity lines of credit [Member] | ' | ' | ||
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ||
Loans to banking clients | 2,127 | 1,559 | ||
Weighted Average Updated FICO | 773 | 773 | ||
Utilization Rate | 36.00% | [2] | 36.00% | [2] |
Percent of Loans that are 90+ Days Past Due and Less than 90 Days Past Due but on Nonaccrual Status | 0.13% | 0.14% | ||
Estimated Current LTV Greater Than 70% through 90% [Member] | Residential real estate mortgages [Member] | ' | ' | ||
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ||
Loans to banking clients | 1,181 | 1,841 | ||
Weighted Average Updated FICO | 763 | 764 | ||
Percent of Loans that are 90+ Days Past Due and Less than 90 Days Past Due but on Nonaccrual Status | 0.34% | 0.22% | ||
Estimated Current LTV Greater Than 70% through 90% [Member] | Home equity lines of credit [Member] | ' | ' | ||
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ||
Loans to banking clients | 664 | 1,020 | ||
Weighted Average Updated FICO | 762 | 766 | ||
Utilization Rate | 48.00% | [2] | 46.00% | [2] |
Percent of Loans that are 90+ Days Past Due and Less than 90 Days Past Due but on Nonaccrual Status | 0.22% | 0.18% | ||
Estimated Current LTV Greater Than 90% through 100% [Member] | Residential real estate mortgages [Member] | ' | ' | ||
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ||
Loans to banking clients | 86 | 168 | ||
Weighted Average Updated FICO | 732 | 750 | ||
Percent of Loans that are 90+ Days Past Due and Less than 90 Days Past Due but on Nonaccrual Status | 4.77% | 0.51% | ||
Estimated Current LTV Greater Than 90% through 100% [Member] | Home equity lines of credit [Member] | ' | ' | ||
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ||
Loans to banking clients | 127 | 267 | ||
Weighted Average Updated FICO | 752 | 759 | ||
Utilization Rate | 59.00% | [2] | 54.00% | [2] |
Percent of Loans that are 90+ Days Past Due and Less than 90 Days Past Due but on Nonaccrual Status | 1.22% | 0.44% | ||
Estimated Current LTV Greater Than 100% [Member] | Residential real estate mortgages [Member] | ' | ' | ||
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ||
Loans to banking clients | 90 | 336 | ||
Weighted Average Updated FICO | 730 | 741 | ||
Percent of Loans that are 90+ Days Past Due and Less than 90 Days Past Due but on Nonaccrual Status | 10.50% | 5.34% | ||
Estimated Current LTV Greater Than 100% [Member] | Home equity lines of credit [Member] | ' | ' | ||
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ||
Loans to banking clients | $123 | $441 | ||
Weighted Average Updated FICO | 743 | 753 | ||
Utilization Rate | 63.00% | [2] | 59.00% | [2] |
Percent of Loans that are 90+ Days Past Due and Less than 90 Days Past Due but on Nonaccrual Status | 1.34% | 1.06% | ||
[1] | Loans are evaluated for impairment by loan segment. | |||
[2] | The Utilization Rate is calculated using the outstanding HELOC balance divided by the associated total line of credit. |
Equipment_Office_Facilities_an2
Equipment, Office Facilities, and Property (Narrative) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Equipment, Office Facilities, and Property [Abstract] | ' | ' | ' |
Depreciation and amortization expense for equipment, office facilities, and property | $154 | $149 | $135 |
Equipment_Office_Facilities_an3
Equipment, Office Facilities, and Property (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Property Plant And Equipment [Line Items] | ' | ' |
Total equipment, office facilities, and property | $2,580 | $2,502 |
Accumulated depreciation and amortization | -1,790 | -1,827 |
Total equipment, office facilities, and property - net | 790 | 675 |
Software [Member] | ' | ' |
Property Plant And Equipment [Line Items] | ' | ' |
Total equipment, office facilities, and property | 1,177 | 1,067 |
Buildings [Member] | ' | ' |
Property Plant And Equipment [Line Items] | ' | ' |
Total equipment, office facilities, and property | 460 | 456 |
Leasehold improvements [Member] | ' | ' |
Property Plant And Equipment [Line Items] | ' | ' |
Total equipment, office facilities, and property | 300 | 287 |
Information technology equipment [Member] | ' | ' |
Property Plant And Equipment [Line Items] | ' | ' |
Total equipment, office facilities, and property | 245 | 398 |
Furniture and equipment [Member] | ' | ' |
Property Plant And Equipment [Line Items] | ' | ' |
Total equipment, office facilities, and property | 131 | 133 |
Telecommunications equipment [Member] | ' | ' |
Property Plant And Equipment [Line Items] | ' | ' |
Total equipment, office facilities, and property | 102 | 95 |
Construction in progress [Member] | ' | ' |
Property Plant And Equipment [Line Items] | ' | ' |
Total equipment, office facilities, and property | 95 | 7 |
Land [Member] | ' | ' |
Property Plant And Equipment [Line Items] | ' | ' |
Total equipment, office facilities, and property | $70 | $59 |
Intangible_Assets_and_Goodwill2
Intangible Assets and Goodwill (Narrative) (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Intangible Assets and Goodwill [Abstract] | ' | ' | ' |
Intangible asset, amortization expense | $48,000,000 | $47,000,000 | $20,000,000 |
Goodwill impairment | $0 | $0 | $0 |
Intangible_Assets_and_Goodwill3
Intangible Assets and Goodwill (Gross Carrying Value of Intangible Assets and Accumulated Amortization) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Gross Carrying Value | $382 | $390 |
Accumulated Amortization | 116 | 71 |
Net Carrying Value | 266 | 319 |
Customer relationships [Member] | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Gross Carrying Value | 274 | 279 |
Accumulated Amortization | 84 | 51 |
Net Carrying Value | 190 | 228 |
Technology [Member] | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Gross Carrying Value | 89 | 89 |
Accumulated Amortization | 27 | 16 |
Net Carrying Value | 62 | 73 |
Trade name [Member] | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Gross Carrying Value | 17 | 17 |
Accumulated Amortization | 4 | 2 |
Net Carrying Value | 13 | 15 |
Other intangible assets [Member] | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Gross Carrying Value | 2 | 5 |
Accumulated Amortization | 1 | 2 |
Net Carrying Value | $1 | $3 |
Intangible_Assets_and_Goodwill4
Intangible Assets and Goodwill (Estimated Future Annual Amortization Expense for Intangible Assets) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Intangible Assets and Goodwill [Abstract] | ' | ' |
2014 | $44 | ' |
2015 | 40 | ' |
2016 | 37 | ' |
2017 | 34 | ' |
2018 | 31 | ' |
Thereafter | 80 | ' |
Total intangible assets | $266 | $319 |
Intangible_Assets_and_Goodwill5
Intangible Assets and Goodwill (Changes in Carrying Amount of Goodwill as Allocated to Reportable Segments) (Details) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Goodwill [Line Items] | ' | ' |
Beginning balance | $1,228 | $1,161 |
Goodwill acquired and other changes during the period | -1 | 67 |
Ending balance | 1,227 | 1,228 |
Investor Services [Member] | ' | ' |
Goodwill [Line Items] | ' | ' |
Beginning balance | 1,128 | 1,083 |
Goodwill acquired and other changes during the period | -1 | 45 |
Ending balance | 1,127 | 1,128 |
Advisor Services [Member] | ' | ' |
Goodwill [Line Items] | ' | ' |
Beginning balance | ' | 78 |
Goodwill acquired and other changes during the period | ' | 22 |
Ending balance | $100 | $100 |
Other_Assets_Details
Other Assets (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | ||
In Millions, unless otherwise specified | ||||
Other Assets [Abstract] | ' | ' | ||
Accounts receivable | $328 | [1] | $417 | [1] |
Interest and dividends receivable | 171 | 150 | ||
Prepaid expenses | 85 | 114 | ||
Other investments | 59 | 59 | ||
Deferred tax asset – net | 28 | [2] | -170 | [2] |
Other | 75 | 73 | ||
Total other assets | $746 | $813 | ||
[1] | Accounts receivable includes accrued service fee income and a receivable from the Company’s loan servicer. | |||
[2] | Amounts are included in other assets and in accrued expenses and other liabilities at December 31, 2013 and 2012, respectively. |
Deposits_from_Banking_Clients_1
Deposits from Banking Clients (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Interest-bearing deposits: | ' | ' |
Deposits swept from brokerage accounts | $72,166 | $58,229 |
Checking | 12,053 | 11,632 |
Savings and other | 8,232 | 9,089 |
Total interest-bearing deposits | 92,451 | 78,950 |
Non-interest-bearing deposits | 521 | 427 |
Total deposits from banking clients | $92,972 | $79,377 |
Payables_to_Brokers_Dealers_an1
Payables to Brokers, Dealers, and Clearing Organizations (Narrative) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Payables to Brokers, Dealers, and Clearing Organizations [Abstract] | ' | ' |
Securities loaned | $1,200 | $882 |
Payables_to_Brokerage_Clients_
Payables to Brokerage Clients (Narrative) (Details) (USD $) | 12 Months Ended | |
In Billions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Payables to Brokerage Clients [Abstract] | ' | ' |
Cash balances in interest-bearing brokerage client accounts | $28.80 | $32.60 |
Average rate paid on cash balances in interest-bearing brokerage client accounts | 0.01% | 0.01% |
Borrowings_Senior_Notes_Trust_
Borrowings (Senior Notes, Trust Preferred Securities and Capital Lease Obligations Narrative) (Details) (USD $) | 1 Months Ended | 12 Months Ended | 12 Months Ended | 1 Months Ended | ||||||||||
Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Aug. 31, 2012 | Dec. 31, 2013 | Aug. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Jul. 25, 2013 | Dec. 31, 2012 | Aug. 31, 2012 | Dec. 06, 2012 | Dec. 31, 2012 | |
Senior Notes [Member] | Senior Notes Due 2022 [Member] | Senior Notes Due 2015 to 2022 [Member] | Senior Notes Due 2015 to 2022 [Member] | Senior Notes Due 2018 [Member] | Senior Notes Due 2014 Exchanged For Senior Notes Due 2022 [Member] | Senior Notes Due 2014 Exchanged For Senior Notes Due 2022 [Member] | Senior Notes Due 2015 [Member] | Medium Term Notes Due 2017 [Member] | ||||||
Minimum [Member] | Maximum [Member] | |||||||||||||
Debt Instrument [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Senior Notes maturity range, start | ' | ' | ' | ' | ' | '2015 | ' | ' | ' | ' | ' | ' | ' | ' |
Senior Notes maturity range, end | ' | ' | ' | ' | ' | '2022 | ' | ' | ' | ' | ' | ' | ' | ' |
Fixed interest rate, long-term debt | ' | ' | ' | ' | ' | ' | ' | 0.85% | 4.45% | 2.20% | ' | ' | 0.85% | 6.38% |
Issued Senior Notes | ' | ' | ' | ' | ' | ' | ' | ' | ' | $275,000,000 | ' | $256,000,000 | $350,000,000 | ' |
Debt instrument maturity year | ' | ' | ' | ' | ' | ' | '2022 | ' | ' | '2018 | ' | '2014 | '2015 | '2017 |
Interest rate | ' | ' | ' | ' | ' | ' | 3.23% | ' | ' | ' | ' | 4.95% | ' | ' |
Cash consideration paid on debt exchange | ' | ' | ' | ' | 19,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Notes Redeemed | 202,000,000 | ' | 202,000,000 | ' | ' | ' | ' | ' | ' | ' | 494,000,000 | ' | ' | ' |
Payment of make-whole premium | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 31,000,000 | ' | ' | ' |
Payment of debt principal | ' | 6,000,000 | 732,000,000 | 116,000,000 | ' | ' | ' | ' | ' | ' | 494,000,000 | ' | ' | ' |
Fixed-to-floating rate trust preferred securities original face amount | 300,000,000 | ' | 300,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Redemption price of Fixed-to-Floating Rate Trust Preferred Securities | 207,000,000 | ' | 207,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of redemption price to liquidation amount of each trust preferred security | 100.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Finance lease obligation lease payment term | ' | '20 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Finance lease obligation | $95,000,000 | $89,000,000 | $95,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Remaining finance lease obligation lease payment term | ' | '11 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Borrowings_Credit_Facilities_N
Borrowings (Credit Facilities Narrative) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 |
Commercial paper [Member] | Standby letters of credit [Member] | Group of 12 banks [Member] | Group of 12 banks [Member] | Group of 6 banks [Member] | Group of 6 banks [Member] | Group of 5 banks [Member] | Group of 5 banks [Member] | Group of 5 banks [Member] | 1 bank [Member] | 1 bank [Member] | Accrued expenses and other liabilities [Member] | Maximum [Member] | |||||
Line of credit [Member] | Line of credit [Member] | Line of credit [Member] | Line of credit [Member] | Standby letters of credit [Member] | Standby letters of credit [Member] | Charles Schwab & Co., Inc. [Member] | Standby letters of credit [Member] | Standby letters of credit [Member] | Commercial paper [Member] | Commercial paper [Member] | |||||||
Standby letters of credit [Member] | OptionsXpress Holdings, Inc. [Member] | ||||||||||||||||
Line of Credit Facility [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Line of credit facility, maximum borrowing capacity | ' | ' | ' | ' | $1,500,000,000 | ' | $800,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Line of credit facility, current borrowing capacity | ' | ' | ' | ' | 800,000,000 | 240,000,000 | ' | ' | 942,000,000 | ' | ' | ' | 225,000,000 | ' | 15,000,000 | ' | ' |
Debt instrument term | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '270 days |
Line of credit facility, remaining borrowing capacity | ' | ' | ' | ' | ' | ' | ' | ' | 647,000,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Commercial Paper Notes, amount outstanding | ' | ' | ' | ' | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 300,000,000 | ' |
Unsecured credit facility, expiration date | ' | ' | ' | ' | ' | ' | 1-Jun-14 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Minimum level of stockholders' equity required under credit facility | ' | ' | ' | ' | ' | ' | 7,100,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stockholders' equity | 10,381,000,000 | 9,589,000,000 | 7,714,000,000 | 6,226,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amount outstanding | ' | ' | ' | ' | ' | ' | $0 | $0 | $0 | $0 | $0 | $0 | ' | $0 | ' | ' | ' |
Borrowings_Longterm_Debt_Inclu
Borrowings (Long-term Debt Including Unamortized Debt Discounts and Premiums) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Borrowings [Abstract] | ' | ' |
Senior Notes | $1,565 | $1,288 |
Senior Medium-Term Notes, Series A | 249 | 249 |
Finance lease obligation | 89 | 95 |
Total long-term debt | $1,903 | $1,632 |
Borrowings_Annual_Maturities_o
Borrowings (Annual Maturities on Long-term Debt Outstanding) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Borrowings [Abstract] | ' | ' |
2014 | $6 | ' |
2015 | 357 | ' |
2016 | 7 | ' |
2017 | 258 | ' |
2018 | 283 | ' |
Thereafter | 1,009 | ' |
Total maturities | 1,920 | ' |
Unamortized discount, net | -17 | ' |
Total long-term debt | $1,903 | $1,632 |
Commitments_and_Contingencies_1
Commitments and Contingencies (Narrative) (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Commitments and Contingencies Disclosure [Line Items] | ' | ' | ' |
Rent expense | $208,000,000 | $203,000,000 | $187,000,000 |
Standby letters of credit [Member] | ' | ' | ' |
Commitments and Contingencies Disclosure [Line Items] | ' | ' | ' |
Aggregate face amount of letter of credit agreements | 240,000,000 | ' | ' |
Bond Market Fund Litigation [Member] | ' | ' | ' |
Commitments and Contingencies Disclosure [Line Items] | ' | ' | ' |
Alleged minimum percentage of fund assets invested in CMOs and mortgage-backed securities without obtaining shareholder vote | 25.00% | ' | ' |
Margin Requirements [Member] | ' | ' | ' |
Commitments and Contingencies Disclosure [Line Items] | ' | ' | ' |
Funds drawn under LOC's | $0 | ' | ' |
Commitments_and_Contingencies_2
Commitments and Contingencies (Future Annual Minimum Rental Commitments, Net of Contractual Subleases) (Details) (USD $) | Dec. 31, 2013 |
In Millions, unless otherwise specified | |
Operating Leases | ' |
2014 | $123 |
2015 | 108 |
2016 | 96 |
2017 | 81 |
2018 | 45 |
Thereafter | 107 |
Total | 560 |
Subleases | ' |
2014 | 34 |
2015 | 34 |
2016 | 34 |
2017 | 28 |
2018 | 6 |
Thereafter | 8 |
Total | 144 |
Net | ' |
2014 | 89 |
2015 | 74 |
2016 | 62 |
2017 | 53 |
2018 | 39 |
Thereafter | 99 |
Total | $416 |
Commitments_and_Contingencies_3
Commitments and Contingencies (Purchase Obligations) (Details) (USD $) | Dec. 31, 2013 |
In Millions, unless otherwise specified | |
Commitments and Contingencies [Abstract] | ' |
2014 | $233 |
2015 | 108 |
2016 | 64 |
2017 | 8 |
2018 | 1 |
Thereafter | 1 |
Total | $415 |
Financial_Instruments_Subject_1
Financial Instruments Subject to Off-Balance Sheet Credit Risk or Concentration Risk (Narrative) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | |
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ' | ' | |
Fair value of client securities pledged in securities lending transactions to other broker-dealers | $1,200,000,000 | $882,000,000 | |
Fair value of Schwab's client securities that can be pledged | 18,200,000,000 | 17,100,000,000 | |
Fair value of Schwab's client securities pledged to fulfill the short sales | 1,600,000,000 | 1,200,000,000 | |
Contractual value of margin loans to clients | 12,800,000,000 | 11,600,000,000 | |
Commitments to purchase First Mortgage loans | 208,000,000 | 867,000,000 | |
Commitments to extend credit | 5,700,000,000 | 5,400,000,000 | |
Fair value of mortgage-backed securities | 48,900,000,000 | 39,500,000,000 | |
Securities available for sale | 51,618,000,000 | 46,123,000,000 | |
Percent of residential real estate mortgage loans with interest only payment terms | 40.00% | ' | |
Percent of interest-only residential real estate mortgage loans with interest rates not scheduled to reset for three or more years | 70.00% | ' | |
U.S. agency mortgage-backed securities [Member] | ' | ' | |
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ' | ' | |
Fair value of mortgage-backed securities | 47,100,000,000 | 38,800,000,000 | |
Securities available for sale | 18,645,000,000 | [1] | 20,476,000,000 |
Non-agency mortgage-backed securities [Member] | ' | ' | |
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ' | ' | |
Fair value of mortgage-backed securities | 1,800,000,000 | 733,000,000 | |
Asset-backed securities [Member] | ' | ' | |
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ' | ' | |
Securities available for sale | 15,206,000,000 | 8,164,000,000 | |
Securities Financing Transaction, Fair Value [Member] | ' | ' | |
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ' | ' | |
Fair value of client securities pledged in securities lending transactions to other broker-dealers | 1,100,000,000 | 852,000,000 | |
Fair value of borrowed securities from other broker-dealers to fulfill short sales by clients | 276,000,000 | 121,000,000 | |
Dividend Reinvestment Elections [Member] | ' | ' | |
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ' | ' | |
Fair value of Schwab's client securities pledged to fulfill the short sales | 130,000,000 | 109,000,000 | |
Open Option Contracts [Member] | ' | ' | |
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ' | ' | |
Fair value of Schwab's client securities that can be pledged | 1,300,000,000 | 1,900,000,000 | |
Resale And Repurchase Agreements [Member] | ' | ' | |
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ' | ' | |
Fair value of Schwab's client securities that can be pledged | 14,300,000,000 | 19,700,000,000 | |
Corporate Debt Securities And Commercial Paper [Member] | ' | ' | |
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ' | ' | |
Investments in corporate debt securities and commercial paper | 9,200,000,000 | 8,000,000,000 | |
Residential real estate mortgages [Member] | ' | ' | |
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ' | ' | |
Residential real estate mortgage loans | $7,300,000,000 | $6,000,000,000 | |
Residential real estate mortgages [Member] | Minimum [Member] | ' | ' | |
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ' | ' | |
Interest-only loans period | '3 years | ' | |
Residential real estate mortgages [Member] | California [Member] | Minimum [Member] | ' | ' | |
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ' | ' | |
Percentage of securities loaned secured by properties in California | 46.00% | 45.00% | |
Home equity lines of credit [Member] | California [Member] | Maximum [Member] | ' | ' | |
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ' | ' | |
Percentage of securities loaned secured by properties in California | 51.00% | 50.00% | |
[1] | Mortgage-backed securities have been allocated to maturity groupings based on final contractual maturities. Actual maturities will differ from final contractual maturities because borrowers on a certain portion of loans underlying these securities have the right to prepay their obligations. |
Fair_Values_of_Assets_and_Liab2
Fair Values of Assets and Liabilities (Fair Value Hierarchy for Assets Measured at Fair Value) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Other securities owned | $517 | $636 |
Securities available for sale | 51,618 | 46,123 |
Fair Value, Measurements, Recurring [Member] | ' | ' |
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Cash equivalents | 1,163 | 1,489 |
Investments segregated and on deposit for regulatory purposes | 5,276 | 4,743 |
Other securities owned | 517 | ' |
Securities available for sale | 51,618 | 46,123 |
Total | 58,574 | 52,991 |
Fair Value, Measurements, Recurring [Member] | Money market funds [Member] | ' | ' |
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Cash equivalents | 1,141 | 413 |
Fair Value, Measurements, Recurring [Member] | Commercial paper [Member] | ' | ' |
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Cash equivalents | 22 | 1,076 |
Securities available for sale | ' | 574 |
Fair Value, Measurements, Recurring [Member] | Certificates of deposit [Member] | ' | ' |
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Investments segregated and on deposit for regulatory purposes | 2,737 | 2,976 |
Securities available for sale | 3,652 | 6,161 |
Fair Value, Measurements, Recurring [Member] | U.S. Government securities [Member] | ' | ' |
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Investments segregated and on deposit for regulatory purposes | 2,539 | 1,767 |
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 | 261 | 329 |
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 | 208 | 217 |
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 | 32 | 48 |
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 | 16 | 42 |
Fair Value, Measurements, Recurring [Member] | U.S. agency mortgage-backed securities [Member] | ' | ' |
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Other securities owned | ' | 636 |
Securities available for sale | 18,645 | 20,476 |
Fair Value, Measurements, Recurring [Member] | Asset-backed securities [Member] | ' | ' |
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Securities available for sale | 15,206 | 8,164 |
Fair Value, Measurements, Recurring [Member] | Corporate debt securities [Member] | ' | ' |
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Securities available for sale | 9,007 | 6,256 |
Fair Value, Measurements, Recurring [Member] | U.S. agency notes [Member] | ' | ' |
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Securities available for sale | 4,136 | 3,464 |
Fair Value, Measurements, Recurring [Member] | Non-agency residential mortgage-backed securities [Member] | ' | ' |
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Securities available for sale | 593 | 733 |
Fair Value, Measurements, Recurring [Member] | Non-agency commercial mortgage-backed securities [Member] | ' | ' |
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Securities available for sale | 279 | ' |
Fair Value, Measurements, Recurring [Member] | Other securities [Member] | ' | ' |
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Securities available for sale | 100 | 295 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Fair Value, Measurements, Recurring [Member] | ' | ' |
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Cash equivalents | 1,141 | 413 |
Other securities owned | 470 | ' |
Total | 1,611 | 961 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Fair Value, Measurements, Recurring [Member] | Money market funds [Member] | ' | ' |
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Cash equivalents | 1,141 | 413 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Fair Value, Measurements, Recurring [Member] | Schwab Funds money market funds [Member] | ' | ' |
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Other securities owned | 261 | 329 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Fair Value, Measurements, Recurring [Member] | Equity and bond mutual funds [Member] | ' | ' |
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Other securities owned | 208 | 217 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Fair Value, Measurements, Recurring [Member] | Equity, U.S. Government and corporate debt, and other securities [Member] | ' | ' |
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Other securities owned | 1 | 2 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Fair Value, Measurements, Recurring [Member] | U.S. agency mortgage-backed securities [Member] | ' | ' |
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Other securities owned | ' | 548 |
Significant Other Observable Inputs (Level 2) [Member] | Fair Value, Measurements, Recurring [Member] | ' | ' |
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Cash equivalents | 22 | 1,076 |
Investments segregated and on deposit for regulatory purposes | 5,276 | 4,743 |
Other securities owned | 47 | ' |
Securities available for sale | 51,618 | 46,123 |
Total | 56,963 | 52,030 |
Significant Other Observable Inputs (Level 2) [Member] | Fair Value, Measurements, Recurring [Member] | Commercial paper [Member] | ' | ' |
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Cash equivalents | 22 | 1,076 |
Securities available for sale | ' | 574 |
Significant Other Observable Inputs (Level 2) [Member] | Fair Value, Measurements, Recurring [Member] | Certificates of deposit [Member] | ' | ' |
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Investments segregated and on deposit for regulatory purposes | 2,737 | 2,976 |
Securities available for sale | 3,652 | 6,161 |
Significant Other Observable Inputs (Level 2) [Member] | Fair Value, Measurements, Recurring [Member] | U.S. Government securities [Member] | ' | ' |
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Investments segregated and on deposit for regulatory purposes | 2,539 | 1,767 |
Significant Other Observable Inputs (Level 2) [Member] | Fair Value, Measurements, Recurring [Member] | State and municipal debt obligations [Member] | ' | ' |
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Other securities owned | 32 | 48 |
Significant Other Observable Inputs (Level 2) [Member] | Fair Value, Measurements, Recurring [Member] | Equity, U.S. Government and corporate debt, and other securities [Member] | ' | ' |
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Other securities owned | 15 | 40 |
Significant Other Observable Inputs (Level 2) [Member] | Fair Value, Measurements, Recurring [Member] | U.S. agency mortgage-backed securities [Member] | ' | ' |
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Other securities owned | ' | 88 |
Securities available for sale | 18,645 | 20,476 |
Significant Other Observable Inputs (Level 2) [Member] | Fair Value, Measurements, Recurring [Member] | Asset-backed securities [Member] | ' | ' |
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Securities available for sale | 15,206 | 8,164 |
Significant Other Observable Inputs (Level 2) [Member] | Fair Value, Measurements, Recurring [Member] | Corporate debt securities [Member] | ' | ' |
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Securities available for sale | 9,007 | 6,256 |
Significant Other Observable Inputs (Level 2) [Member] | Fair Value, Measurements, Recurring [Member] | U.S. agency notes [Member] | ' | ' |
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Securities available for sale | 4,136 | 3,464 |
Significant Other Observable Inputs (Level 2) [Member] | Fair Value, Measurements, Recurring [Member] | Non-agency residential mortgage-backed securities [Member] | ' | ' |
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Securities available for sale | 593 | 733 |
Significant Other Observable Inputs (Level 2) [Member] | Fair Value, Measurements, Recurring [Member] | Non-agency commercial mortgage-backed securities [Member] | ' | ' |
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Securities available for sale | 279 | ' |
Significant Other Observable Inputs (Level 2) [Member] | Fair Value, Measurements, Recurring [Member] | Other securities [Member] | ' | ' |
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Securities available for sale | $100 | $295 |
Fair_Values_of_Assets_and_Liab3
Fair Values of Assets and Liabilities (Fair Value Hierarchy for Financial Instruments Not Recorded at Fair Value) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Assets: | ' | ' |
Securities held to maturity | $29,490 | $18,732 |
Carrying Amount [Member] | ' | ' |
Assets: | ' | ' |
Cash and cash equivalents | 6,565 | 11,174 |
Cash and investments segregated and on deposit for regulatory purposes | 18,273 | 23,723 |
Receivables from brokers, dealers, and clearing organizations | 509 | 333 |
Receivables from brokerage clients - net | 13,949 | 13,453 |
Securities held to maturity | 30,318 | 18,194 |
Loans to banking clients - net | 12,467 | 10,726 |
Other assets | 64 | 64 |
Total | 82,145 | 77,667 |
Liabilities: | ' | ' |
Deposits from banking clients | 92,972 | 79,377 |
Payables to brokers, dealers, and clearing organizations | 1,467 | 1,068 |
Payables to brokerage clients | 35,333 | 40,330 |
Accrued expenses and other liabilities | 680 | 353 |
Long-term debt | 1,903 | 1,632 |
Total | 132,355 | 122,760 |
Carrying Amount [Member] | Residential real estate mortgages [Member] | ' | ' |
Assets: | ' | ' |
Loans to banking clients - net | 8,006 | 6,471 |
Carrying Amount [Member] | Home equity lines of credit [Member] | ' | ' |
Assets: | ' | ' |
Loans to banking clients - net | 3,041 | 3,267 |
Carrying Amount [Member] | Personal loans secured by securities [Member] | ' | ' |
Assets: | ' | ' |
Loans to banking clients - net | 1,384 | 963 |
Carrying Amount [Member] | Other [Member] | ' | ' |
Assets: | ' | ' |
Loans to banking clients - net | 36 | 25 |
Carrying Amount [Member] | U.S. agency mortgage-backed securities [Member] | ' | ' |
Assets: | ' | ' |
Securities held to maturity | 29,260 | 17,750 |
Carrying Amount [Member] | Non-agency commercial mortgage-backed securities [Member] | ' | ' |
Assets: | ' | ' |
Securities held to maturity | 958 | ' |
Carrying Amount [Member] | Other securities [Member] | ' | ' |
Assets: | ' | ' |
Securities held to maturity | 100 | 444 |
Fair Value [Member] | ' | ' |
Assets: | ' | ' |
Cash and cash equivalents | 6,565 | 11,174 |
Cash and investments segregated and on deposit for regulatory purposes | 18,273 | 23,723 |
Receivables from brokers, dealers, and clearing organizations | 509 | 333 |
Receivables from brokerage clients - net | 13,949 | 13,453 |
Securities held to maturity | 29,490 | 18,732 |
Loans to banking clients - net | 12,392 | 10,969 |
Other assets | 64 | 64 |
Total | 81,242 | 78,448 |
Liabilities: | ' | ' |
Deposits from banking clients | 92,972 | 79,377 |
Payables to brokers, dealers, and clearing organizations | 1,467 | 1,068 |
Payables to brokerage clients | 35,333 | 40,330 |
Accrued expenses and other liabilities | 680 | 353 |
Long-term debt | 1,989 | 1,782 |
Total | 132,441 | 122,910 |
Fair Value [Member] | Residential real estate mortgages [Member] | ' | ' |
Assets: | ' | ' |
Loans to banking clients - net | 7,930 | 6,687 |
Fair Value [Member] | Home equity lines of credit [Member] | ' | ' |
Assets: | ' | ' |
Loans to banking clients - net | 3,043 | 3,295 |
Fair Value [Member] | Personal loans secured by securities [Member] | ' | ' |
Assets: | ' | ' |
Loans to banking clients - net | 1,384 | 963 |
Fair Value [Member] | Other [Member] | ' | ' |
Assets: | ' | ' |
Loans to banking clients - net | 35 | 24 |
Fair Value [Member] | U.S. agency mortgage-backed securities [Member] | ' | ' |
Assets: | ' | ' |
Securities held to maturity | 28,500 | 18,289 |
Fair Value [Member] | Non-agency commercial mortgage-backed securities [Member] | ' | ' |
Assets: | ' | ' |
Securities held to maturity | 890 | ' |
Fair Value [Member] | Other securities [Member] | ' | ' |
Assets: | ' | ' |
Securities held to maturity | 100 | 443 |
Fair Value [Member] | Significant Other Observable Inputs (Level 2) [Member] | ' | ' |
Assets: | ' | ' |
Cash and cash equivalents | 6,565 | 11,174 |
Cash and investments segregated and on deposit for regulatory purposes | 18,273 | 23,723 |
Receivables from brokers, dealers, and clearing organizations | 509 | 333 |
Receivables from brokerage clients - net | 13,949 | 13,453 |
Securities held to maturity | 29,490 | 18,732 |
Loans to banking clients - net | 12,392 | 10,969 |
Other assets | 64 | 64 |
Total | 81,242 | 78,448 |
Liabilities: | ' | ' |
Deposits from banking clients | 92,972 | 79,377 |
Payables to brokers, dealers, and clearing organizations | 1,467 | 1,068 |
Payables to brokerage clients | 35,333 | 40,330 |
Accrued expenses and other liabilities | 680 | 353 |
Long-term debt | 1,989 | 1,782 |
Total | 132,441 | 122,910 |
Fair Value [Member] | Significant Other Observable Inputs (Level 2) [Member] | Residential real estate mortgages [Member] | ' | ' |
Assets: | ' | ' |
Loans to banking clients - net | 7,930 | 6,687 |
Fair Value [Member] | Significant Other Observable Inputs (Level 2) [Member] | Home equity lines of credit [Member] | ' | ' |
Assets: | ' | ' |
Loans to banking clients - net | 3,043 | 3,295 |
Fair Value [Member] | Significant Other Observable Inputs (Level 2) [Member] | Personal loans secured by securities [Member] | ' | ' |
Assets: | ' | ' |
Loans to banking clients - net | 1,384 | 963 |
Fair Value [Member] | Significant Other Observable Inputs (Level 2) [Member] | Other [Member] | ' | ' |
Assets: | ' | ' |
Loans to banking clients - net | 35 | 24 |
Fair Value [Member] | Significant Other Observable Inputs (Level 2) [Member] | U.S. agency mortgage-backed securities [Member] | ' | ' |
Assets: | ' | ' |
Securities held to maturity | 28,500 | 18,289 |
Fair Value [Member] | Significant Other Observable Inputs (Level 2) [Member] | Non-agency commercial mortgage-backed securities [Member] | ' | ' |
Assets: | ' | ' |
Securities held to maturity | 890 | ' |
Fair Value [Member] | Significant Other Observable Inputs (Level 2) [Member] | Other securities [Member] | ' | ' |
Assets: | ' | ' |
Securities held to maturity | $100 | $443 |
Stockholders_Equity_Narrative_
Stockholders' Equity (Narrative) (Details) (USD $) | 12 Months Ended | 12 Months Ended | 1 Months Ended | 12 Months Ended | 1 Months Ended | ||||
In Millions, except Share data, unless otherwise specified | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Jan. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Jun. 30, 2012 |
Common Stock [Member] | Common Stock [Member] | Common Stock [Member] | Series A Preferred Stock [Member] | Series A Preferred Stock [Member] | Series A Preferred Stock [Member] | Series B Preferred Stock [Member] | |||
Noncumulative Preferred Stock [Member] | Noncumulative Preferred Stock [Member] | Noncumulative Preferred Stock [Member] | Noncumulative Preferred Stock [Member] | ||||||
Minimum [Member] | Fixed Rate [Member] | ||||||||
Class of Stock [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common stock issued | ' | ' | 0 | 0 | 0 | ' | ' | ' | ' |
Preferred stock, shares authorized | 9,940,000 | 9,940,000 | ' | ' | ' | ' | ' | ' | ' |
Preferred stock, par value | $0.01 | $0.01 | ' | ' | ' | ' | ' | ' | ' |
Fixed-to-floating rate non-cumulative perpetual preferred stock issued | ' | ' | ' | ' | ' | 400,000 | ' | ' | ' |
Net proceeds from issuance of preferred stock offerings | $863 | ' | ' | ' | ' | $394 | ' | ' | $469 |
Fixed dividend rate on preferred stock | ' | ' | ' | ' | ' | 7.00% | ' | ' | 6.00% |
End date of fixed dividend rate on Preferred stock | ' | ' | ' | ' | ' | ' | '2022-02 | ' | ' |
Floating rate on 3-month LIBOR plus | ' | ' | ' | ' | ' | 4.82% | ' | ' | ' |
Preferred stock earliest redemption date | ' | ' | ' | ' | ' | ' | ' | 1-Feb-22 | ' |
Depositary shares of non-cumulative perpetual preferred stock | ' | ' | ' | ' | ' | ' | ' | ' | 19,400,000 |
Ownership interest percentage in a share of 6.00% non-cumulative perpetual preferred stock | ' | ' | ' | ' | ' | ' | ' | ' | 2.50% |
Value per depositary share | ' | ' | ' | ' | ' | ' | ' | ' | $25 |
Stockholders_Equity_Preferred_
Stockholders' Equity (Preferred Stock Issued and Outstanding) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, except Share data in Thousands, unless otherwise specified | ||
Class of Stock [Line Items] | ' | ' |
Shares Issued and Outstanding | 885 | 885 |
Liquidation Preference | $885 | $885 |
Carrying Value | 869 | 865 |
Series A Preferred Stock [Member] | ' | ' |
Class of Stock [Line Items] | ' | ' |
Shares Issued and Outstanding | 400 | 400 |
Liquidation Preference Per Share | $1,000 | $1,000 |
Liquidation Preference | 400 | 400 |
Carrying Value | 395 | 394 |
Series B Preferred Stock [Member] | ' | ' |
Class of Stock [Line Items] | ' | ' |
Shares Issued and Outstanding | 485 | 485 |
Liquidation Preference Per Share | $1,000 | $1,000 |
Liquidation Preference | 485 | 485 |
Carrying Value | $474 | $471 |
Accumulated_Other_Comprehensiv2
Accumulated Other Comprehensive Income (Components of Other Comprehensive (Loss) Income) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Change in net unrealized gain on Securities available for sale: | ' | ' | ' |
Net unrealized (loss) gain | ($468) | $470 | ($43) |
Reclassification of impairment charges included in net impairment losses on securities | 10 | 32 | 31 |
Other reclassifications included in other revenue | -7 | -38 | 1 |
Change in net unrealized gain on securities available for sale | -465 | 464 | -11 |
Other | 1 | 1 | -1 |
Other comprehensive (loss) income, before tax | -464 | 465 | -12 |
Change in net unrealized gain on Securities available for sale: | ' | ' | ' |
Net unrealized (loss) gain | 176 | -177 | 16 |
Reclassification of impairment charges included in net impairment losses on securities | -4 | -12 | -12 |
Other reclassifications included in other revenue | 3 | 14 | ' |
Change in net unrealized gain on securities available for sale | 175 | -175 | 4 |
Other comprehensive (loss) income, tax effect | 175 | -175 | 4 |
Change in net unrealized gain on securities available for sale: | ' | ' | ' |
Net unrealized (loss) gain | -292 | 293 | -27 |
Reclassification of impairment charges included in net impairment losses on securities | 6 | 20 | 19 |
Other reclassifications included in other revenue | -4 | -24 | 1 |
Change in net unrealized gain on securities available for sale | -290 | 289 | -7 |
Other | 1 | 1 | -1 |
Other comprehensive (loss) income, net of tax | ($289) | $290 | ($8) |
Accumulated_Other_Comprehensiv3
Accumulated Other Comprehensive Income (Accumulated Other Comprehensive Income Balances) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' | ' |
Beginning Balance | $298 | $8 | $16 |
Other net changes | -289 | 290 | -8 |
Ending Balance | 9 | 298 | 8 |
Net Unrealized Gain On Securities Available For Sale [Member] | ' | ' | ' |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' | ' |
Beginning Balance | 299 | 10 | 17 |
Other net changes | -290 | 289 | -7 |
Ending Balance | 9 | 299 | 10 |
Other [Member] | ' | ' | ' |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' | ' |
Beginning Balance | -1 | -2 | -1 |
Other net changes | 1 | 1 | -1 |
Ending Balance | ' | ($1) | ($2) |
Employee_Incentive_Retirement_2
Employee Incentive, Retirement, and Deferred Compensation Plans (Employee Incentive Narrative) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
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 | 67 | ' | ' |
Total unrecognized compensation cost, net of forfeitures, related to outstanding stock options, restricted stock awards, and restricted stock units | $189 | ' | ' |
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 9 months 18 days | ' | ' |
Restricted stock unit [Member] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Total fair value of restricted stock awards vested | $78 | $30 | $13 |
Employee stock purchase plan [Member] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Shares reserved for future issuance under the ESPP | 42 | ' | ' |
Minimum [Member] | Restricted stock unit [Member] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Award vesting period | '3 years | ' | ' |
Minimum [Member] | Stock option plan [Member] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Period from the date of grant in which stock options expire | '7 years | ' | ' |
Award vesting period | '3 years | ' | ' |
Maximum [Member] | Restricted stock unit [Member] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Award vesting period | '5 years | ' | ' |
Maximum [Member] | Stock option plan [Member] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Period from the date of grant in which stock options expire | '10 years | ' | ' |
Award vesting period | '5 years | ' | ' |
Employee_Incentive_Retirement_3
Employee Incentive, Retirement, and Deferred Compensation Plans (Retirement and Deferred Compensation Plans Narrative) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Employee Incentive, Retirement, and Deferred Compensation Plans [Abstract] | ' | ' | ' |
Company's total contribution expense | $63 | $59 | $53 |
Deferred compensation liability | $135 | $127 | ' |
Employee_Incentive_Retirement_4
Employee Incentive, Retirement, and Deferred Compensation Plans (Stock-Based Compensation Expense and Related Income Tax Benefit) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Total stock-based compensation expense | $116 | $105 | $99 |
Income tax benefit on stock-based compensation | -43 | -39 | -37 |
Stock option [Member] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Total stock-based compensation expense | 52 | 57 | 61 |
Restricted stock unit [Member] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Total stock-based compensation expense | 60 | 40 | 23 |
Restricted stock award [Member] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Total stock-based compensation expense | ' | 5 | 12 |
Employee stock purchase plan [Member] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Total stock-based compensation expense | $4 | $3 | $3 |
Employee_Incentive_Retirement_5
Employee Incentive, Retirement, and Deferred Compensation Plans (Stock Option Activity) (Details) (USD $) | 12 Months Ended |
In Millions, except Per Share data, unless otherwise specified | Dec. 31, 2013 |
Number of Options | ' |
Outstanding Beginning Balance | 57 |
Granted | 7 |
Exercised | -16 |
Forfeited | -1 |
Expired | -1 |
Outstanding Ending Balance | 46 |
Vested and expected to vest at December 31, 2013 | 44 |
Vested and exercisable at December 31, 2013 | 25 |
Weighted-Average Exercise Price per Share | ' |
Outstanding Beginning Balance | $16.04 |
Granted | $21.71 |
Exercised | $16.47 |
Forfeited | $13.39 |
Expired | $19.96 |
Outstanding Ending Balance | $16.74 |
Vested and expected to vest at December 31, 2013 | $16.76 |
Vested and exercisable at December 31, 2013 | $17.17 |
Weighted-Average Remaining Contractual Life (in years) | ' |
Outstanding at December 31, 2013 | '6 years 9 months 29 days |
Vested and expected to vest at December 31, 2013 | '6 years 8 months 27 days |
Vested and exercisable at December 31, 2013 | '5 years 3 months 29 days |
Aggregate Intrinsic Value | ' |
Outstanding at December 31, 2013 | $427 |
Vested and expected to vest at December 31, 2013 | 406 |
Vested and exercisable at December 31, 2013 | $220 |
Employee_Incentive_Retirement_6
Employee Incentive, Retirement, and Deferred Compensation Plans (Information on Stock Options Granted and Exercised) (Details) (USD $) | 12 Months Ended | ||
In Millions, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Employee Incentive, Retirement, and Deferred Compensation Plans [Abstract] | ' | ' | ' |
Weighted-average fair value of options granted per share | $6.33 | $4.07 | $4.16 |
Cash received from options exercised | $258 | $35 | $96 |
Tax benefit realized on options exercised | ' | 1 | 7 |
Aggregate intrinsic value of options exercised | $82 | $9 | $38 |
Employee_Incentive_Retirement_7
Employee Incentive, Retirement, and Deferred Compensation Plans (Assumptions Used to Value Options Granted and Their Expected Lives) (Details) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Weighted-average expected dividend yield | 1.13% | 0.99% | 0.85% |
Weighted-average expected volatility | 28.00% | 31.00% | 36.00% |
Weighted-average risk-free interest rate | 2.50% | 1.80% | 2.10% |
Minimum [Member] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Expected life (in years) | '4 years 7 months 6 days | '3 years | '0 years |
Maximum [Member] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Expected life (in years) | '7 years 10 months 24 days | '6 years 8 months 12 days | '6 years 3 months 18 days |
Employee_Incentive_Retirement_8
Employee Incentive, Retirement, and Deferred Compensation Plans (Restricted Stock Units Activity) (Details) (Restricted stock unit [Member], USD $) | 12 Months Ended |
In Millions, except Per Share data, unless otherwise specified | Dec. 31, 2013 |
Restricted stock unit [Member] | ' |
Number of Units | ' |
Outstanding Beginning Balance | 11 |
Granted | 4 |
Vested | -3 |
Forfeited | -1 |
Outstanding Ending Balance | 11 |
Weighted-Average Grant Date Fair Value per unit | ' |
Outstanding Beginning Balance | $13.34 |
Granted | $21.32 |
Vested | $22.44 |
Forfeited | $14.17 |
Outstanding Ending Balance | $16.11 |
Taxes_on_Income_Income_Tax_Exp
Taxes on Income (Income Tax Expense) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Current: | ' | ' | ' |
Federal | $598 | $489 | $424 |
State | 57 | 28 | 52 |
Total current | 655 | 517 | 476 |
Deferred: | ' | ' | ' |
Federal | -20 | 5 | 44 |
State | -1 | ' | 8 |
Total deferred | -21 | 5 | 52 |
Taxes on income | $634 | $522 | $528 |
Taxes_on_Income_Temporary_Diff
Taxes on Income (Temporary Differences That Created Deferred Tax Assets and Liabilities) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | ||
In Millions, unless otherwise specified | ||||
Deferred tax assets: | ' | ' | ||
Employee compensation, severance, and benefits | $190 | $189 | ||
Facilities lease commitments | 33 | 35 | ||
Reserves and allowances | 30 | 37 | ||
State and local taxes | 12 | ' | ||
Net operating loss carryforwards | 6 | 6 | ||
Total deferred tax assets | 271 | 267 | ||
Valuation allowance | -4 | -3 | ||
Deferred tax assets - net of valuation allowance | 267 | 264 | ||
Deferred tax liabilities: | ' | ' | ||
Depreciation and amortization | -142 | -166 | ||
Capitalized internal-use software development costs | -62 | -50 | ||
Deferred cancellation of debt income | -11 | -11 | ||
Deferred loan costs | -10 | -15 | ||
Deferred Senior Note exchange | -7 | -6 | ||
Net unrealized gain on securities available for sale | -5 | -179 | ||
Other | -2 | -7 | ||
Total deferred tax liabilities | -239 | -434 | ||
Deferred tax asset (liability) – net | $28 | [1] | ($170) | [1] |
[1] | Amounts are included in other assets and in accrued expenses and other liabilities at December 31, 2013 and 2012, respectively. |
Taxes_on_Income_Reconciliation
Taxes on Income (Reconciliation of Federal Statutory Income Tax Rate to Effective Income Tax Rate) (Details) (USD $) | 12 Months Ended | |||||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |||
Taxes on Income [Abstract] | ' | ' | ' | |||
Federal statutory income tax rate | 35.00% | 35.00% | 35.00% | |||
State income taxes, net of federal tax benefit | 2.30% | [1] | 1.20% | [1] | 2.50% | [1] |
Other | -0.10% | -0.20% | 0.40% | |||
Effective income tax rate | 37.20% | 36.00% | 37.90% | |||
Impact of non recurring state tax benefits | $4 | $20 | ' | |||
[1] | Includes the impact of a non-recurring state tax benefit of which $4Â million and $20Â million were recorded in 2013 and 2012, respectively. |
Taxes_on_Income_Reconciliation1
Taxes on Income (Reconciliation of Beginning and Ending Amount of Unrecognized Tax Benefits) (Details) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Taxes on Income [Abstract] | ' | ' |
Balance at beginning of year | $12 | $13 |
Additions for tax positions related to the current year | 1 | 1 |
Additions for tax positions related to prior years | ' | 1 |
Reductions due to lapse of statute of limitations | -2 | -2 |
Reductions for settlements with tax authorities | -1 | -1 |
Balance at end of year | $10 | $12 |
Earnings_Per_Common_Share_EPS_
Earnings Per Common Share (EPS under Basic and Diluted Computations) (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||||||||||||
In Millions, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |||
Earnings Per Common Share [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Net income | $319 | $290 | $256 | $206 | $211 | $247 | $275 | $195 | $1,071 | $928 | $864 | |||
Preferred stock dividends | ' | ' | ' | ' | ' | ' | ' | ' | 61 | 45 | ' | |||
Net income available to common stockholders | $297 | $282 | $233 | $198 | $189 | $238 | $261 | $195 | $1,010 | $883 | $864 | |||
Weighted-average common shares outstanding — basic | ' | ' | ' | ' | ' | ' | ' | ' | 1,285 | 1,274 | 1,227 | |||
Common stock equivalent shares related to stock incentive plans | ' | ' | ' | ' | ' | ' | ' | ' | 8 | 1 | 2 | |||
Weighted-average common shares outstanding — diluted | 1,304 | 1,296 | 1,288 | 1,282 | 1,278 | 1,275 | 1,274 | 1,273 | 1,293 | [1] | 1,275 | [1] | 1,229 | [1] |
Basic EPS | $0.23 | $0.22 | $0.18 | $0.15 | $0.15 | $0.19 | $0.20 | $0.15 | $0.78 | $0.69 | $0.70 | |||
Diluted EPS | $0.23 | $0.22 | $0.18 | $0.15 | $0.15 | $0.19 | $0.20 | $0.15 | $0.78 | $0.69 | $0.70 | |||
Antidilutive stock options and restricted stock awards excluded from the calculation of diluted EPS | ' | ' | ' | ' | ' | ' | ' | ' | 34 | 74 | 63 | |||
[1] | Antidilutive stock options and restricted stock awards excluded from the calculation of diluted EPS totaled 34Â million, 74Â million, and 63Â million shares in 2013, 2012, and 2011, respectively. |
Regulatory_Requirements_Narrat
Regulatory Requirements (Narrative) (Details) (USD $) | 12 Months Ended | ||||
Dec. 31, 2013 | Dec. 31, 2012 | Jan. 03, 2013 | Jan. 03, 2014 | Dec. 31, 2013 | |
Reserve Deposit [Member] | Subsequent Event [Member] | Schwab [Member] | |||
Reserve Deposit [Member] | |||||
Compliance with Regulatory Capital Requirements for Broker Dealers [Line Items] | ' | ' | ' | ' | ' |
Schwab Bank's average reserve requirement | $1,200,000,000 | $1,100,000,000 | ' | ' | ' |
Percentage of aggregate debit balances required as minimum net capital | 2.00% | ' | ' | ' | ' |
Minimum capital requirement | ' | ' | ' | ' | 250,000 |
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 ($250,000 for Schwab), 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 to its parent company or employees 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. | ' | ' | ' | ' |
Percentage of net capital to aggregate debit balances required for a broker-dealer to repay subordinated borrowings, pay cash dividends, or make any unsecured advances or loans to its parent company or employees | 5.00% | ' | ' | ' | ' |
Percentage of net capital to the Company's minimum dollar requirement required for a broker-dealer to repay subordinated borrowings, pay cash dividends, or make any unsecured advances or loans to its parent company or employees | 120.00% | ' | ' | ' | ' |
Description of Net Capital Requirements under Commodity Exchange Act | 'optionsXpress, Inc. is also subject to Commodity Futures Trading Commission Regulation 1.17 (Reg. 1.17) under the Commodity Exchange Act, which also requires the maintenance of minimum net capital. optionsXpress, Inc., as a futures commission merchant, is required to maintain minimum net capital equal to the greater of its net capital requirement under Reg. 1.17 ($1Â million), or the sum of 8% of the total risk margin requirements for all positions carried in client accounts and 8% of the total risk margin requirements for all positions carried in non-client accounts (as defined in Reg. 1.17). | ' | ' | ' | ' |
Net capital required for optionsXpress, Inc. under Reg 1.17 of the Commodity Exchange Act | 1,000,000 | ' | ' | ' | ' |
Minimum percentage of the total risk margin requirements for all positions carried in customer accounts to be added to the minimum percentage of the total risk margin requirements for all positions carried in non-customer accounts for optionsXpress, Inc. minimum net capital calculation | 8.00% | ' | ' | ' | ' |
Minimum percentage of the total risk margin requirements for all positions carried in non-customer accounts to be added to the minimum percentage of the total risk margin requirements for all positions carried in customer accounts for optionsXpress, Inc. minimum net capital calculation | 8.00% | ' | ' | ' | ' |
Cash and investments required to be segregated and on deposit for regulatory purposes | 24,000,000,000 | 29,200,000,000 | ' | ' | ' |
Net amount of segregated cash deposited into segregated reserve bank accounts | ' | ' | $1,200,000,000 | $965,000,000 | ' |
Regulatory_Requirements_Regula
Regulatory Requirements (Regulatory Capital and Ratios) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Tier 1 Risk-Based Capital | ' | ' |
Actual Amount | $6,550 | $5,707 |
Minimum Capital Requirement Amount | 1,383 | 1,139 |
Minimum to be Well Capitalized Amount | 2,074 | 1,709 |
Actual Ratio | 19.00% | 20.00% |
Minimum Capital Requirement Ratio | 4.00% | 4.00% |
Minimum to be Well Capitalized Ratio | 6.00% | 6.00% |
Total Risk-Based Capital | ' | ' |
Actual Amount | 6,599 | 5,760 |
Minimum Capital Requirement Amount | 2,766 | 2,279 |
Minimum to be Well Capitalized Amount | 3,457 | 2,848 |
Actual Ratio | 19.10% | 20.20% |
Minimum Capital Requirement Ratio | 8.00% | 8.00% |
Minimum to be Well Capitalized Ratio | 10.00% | 10.00% |
Tier 1 Leverage | ' | ' |
Actual Amount | 6,550 | 5,707 |
Minimum Capital Requirement Amount | 3,994 | 3,412 |
Minimum to be Well Capitalized Amount | 4,993 | 4,266 |
Actual Ratio | 6.60% | 6.70% |
Minimum Capital Requirement Ratio | 4.00% | 4.00% |
Minimum to be Well Capitalized Ratio | 5.00% | 5.00% |
Tangible Equity | ' | ' |
Actual Amount | 6,550 | 5,707 |
Minimum Capital Requirement Amount | $1,997 | $1,706 |
Actual Ratio | 6.60% | 6.70% |
Minimum Capital Requirement Ratio | 2.00% | 2.00% |
Regulatory_Requirements_Net_Ca
Regulatory Requirements (Net Capital and Net Capital Requirements for Schwab and optionsXpress, Inc) (Details) (USD $) | Dec. 31, 2013 |
Schwab [Member] | ' |
Compliance with Regulatory Capital Requirements for Broker Dealers [Line Items] | ' |
Net Capital | $1,446,000,000 |
% of Aggregate Debit Balances | 10.00% |
Minimum Net Capital Required | 250,000 |
2% of Aggregate Debit Balances | 295,000,000 |
Net Capital in Excess of Required Net Capital | 1,151,000,000 |
Net Capital in Excess of 5% of Aggregate Debit Balances | 707,000,000 |
OptionsXpress, Inc. [Member] | ' |
Compliance with Regulatory Capital Requirements for Broker Dealers [Line Items] | ' |
Net Capital | 102,000,000 |
% of Aggregate Debit Balances | 36.00% |
Minimum Net Capital Required | 1,000,000 |
2% of Aggregate Debit Balances | 6,000,000 |
Net Capital in Excess of Required Net Capital | 96,000,000 |
Net Capital in Excess of 5% of Aggregate Debit Balances | $88,000,000 |
Segment_Information_Narrative_
Segment Information (Narrative) (Details) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
segment | |||
Segment Reporting Information [Line Items] | ' | ' | ' |
Number of reportable segments | 2 | ' | ' |
Clients, except for Schwab proprietary mutual funds, that accounted for more than 10% of the Company's net revenues | 'Except for Schwab's proprietary mutual funds, which are considered a single client for purposes of this computation, no single client accounted for more than 10% of the Company's net revenues in 2013, 2012, or 2011. | 'Except for Schwab's proprietary mutual funds, which are considered a single client for purposes of this computation, no single client accounted for more than 10% of the Company's net revenues in 2013, 2012, or 2011. | 'Except for Schwab's proprietary mutual funds, which are considered a single client for purposes of this computation, no single client accounted for more than 10% of the Company's net revenues in 2013, 2012, or 2011. |
Schwab Funds money market funds [Member] | Net revenues [Member] | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Concentration risk percentage | 9.00% | ' | ' |
California [Member] | Client accounts [Member] | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Concentration risk percentage | 23.00% | 23.00% | 23.00% |
Segment_Information_Financial_
Segment Information (Financial Information for Reportable Segments) (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||||||||||||
In Millions, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |||
Net Revenues: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Asset management and administration fees | ' | ' | ' | ' | ' | ' | ' | ' | $2,315 | $2,043 | $1,928 | |||
Net interest revenue | ' | ' | ' | ' | ' | ' | ' | ' | 1,980 | 1,764 | 1,725 | |||
Trading revenue | ' | ' | ' | ' | ' | ' | ' | ' | 913 | 868 | 927 | |||
Other — net | ' | ' | ' | ' | ' | ' | ' | ' | 236 | [1] | 256 | [1] | 160 | [1] |
Provision for loan losses | ' | ' | ' | ' | ' | ' | ' | ' | 1 | -16 | -18 | |||
Net impairment losses on securities | ' | ' | ' | ' | ' | ' | ' | ' | -10 | [2] | -32 | [2] | -31 | [2] |
Total net revenues | 1,435 | 1,373 | 1,337 | 1,290 | 1,215 | 1,196 | 1,283 | 1,189 | 5,435 | 4,883 | 4,691 | |||
Expenses Excluding Interest | 937 | 909 | 925 | 959 | 871 | 835 | 851 | 876 | 3,730 | 3,433 | 3,299 | |||
Income before taxes on income | ' | ' | ' | ' | ' | ' | ' | ' | 1,705 | 1,450 | 1,392 | |||
Capital expenditures | ' | ' | ' | ' | ' | ' | ' | ' | 270 | 138 | 190 | |||
Depreciation and amortization | ' | ' | ' | ' | ' | ' | ' | ' | 202 | 196 | 155 | |||
Pretax gain related to confidential resolution of a vendor dispute | ' | ' | ' | ' | ' | ' | ' | ' | ' | 70 | ' | |||
Investor Services [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Net Revenues: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Asset management and administration fees | ' | ' | ' | ' | ' | ' | ' | ' | 1,627 | 1,436 | 1,357 | |||
Net interest revenue | ' | ' | ' | ' | ' | ' | ' | ' | 1,756 | 1,559 | 1,542 | |||
Trading revenue | ' | ' | ' | ' | ' | ' | ' | ' | 621 | 612 | 667 | |||
Other — net | ' | ' | ' | ' | ' | ' | ' | ' | 178 | [1] | 123 | [1] | 98 | [1] |
Provision for loan losses | ' | ' | ' | ' | ' | ' | ' | ' | 1 | -15 | -16 | |||
Net impairment losses on securities | ' | ' | ' | ' | ' | ' | ' | ' | -9 | -29 | -29 | |||
Total net revenues | ' | ' | ' | ' | ' | ' | ' | ' | 4,174 | 3,686 | 3,619 | |||
Expenses Excluding Interest | ' | ' | ' | ' | ' | ' | ' | ' | 2,899 | 2,693 | 2,569 | |||
Income before taxes on income | ' | ' | ' | ' | ' | ' | ' | ' | 1,275 | 993 | 1,050 | |||
Capital expenditures | ' | ' | ' | ' | ' | ' | ' | ' | 190 | 98 | 134 | |||
Depreciation and amortization | ' | ' | ' | ' | ' | ' | ' | ' | 155 | 157 | 122 | |||
Advisor Services [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Net Revenues: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Asset management and administration fees | ' | ' | ' | ' | ' | ' | ' | ' | 689 | 607 | 571 | |||
Net interest revenue | ' | ' | ' | ' | ' | ' | ' | ' | 224 | 205 | 183 | |||
Trading revenue | ' | ' | ' | ' | ' | ' | ' | ' | 292 | 255 | 260 | |||
Other — net | ' | ' | ' | ' | ' | ' | ' | ' | 57 | [1] | 62 | [1] | 62 | [1] |
Provision for loan losses | ' | ' | ' | ' | ' | ' | ' | ' | ' | -1 | -2 | |||
Net impairment losses on securities | ' | ' | ' | ' | ' | ' | ' | ' | -1 | -3 | -2 | |||
Total net revenues | ' | ' | ' | ' | ' | ' | ' | ' | 1,261 | 1,125 | 1,072 | |||
Expenses Excluding Interest | ' | ' | ' | ' | ' | ' | ' | ' | 831 | 739 | 731 | |||
Income before taxes on income | ' | ' | ' | ' | ' | ' | ' | ' | 430 | 386 | 341 | |||
Capital expenditures | ' | ' | ' | ' | ' | ' | ' | ' | 80 | 40 | 56 | |||
Depreciation and amortization | ' | ' | ' | ' | ' | ' | ' | ' | 47 | 39 | 33 | |||
Unallocated [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Net Revenues: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Asset management and administration fees | ' | ' | ' | ' | ' | ' | ' | ' | -1 | ' | ' | |||
Trading revenue | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1 | ' | |||
Other — net | ' | ' | ' | ' | ' | ' | ' | ' | 1 | [1] | 71 | [1] | ' | |
Total net revenues | ' | ' | ' | ' | ' | ' | ' | ' | ' | 72 | ' | |||
Expenses Excluding Interest | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1 | -1 | |||
Income before taxes on income | ' | ' | ' | ' | ' | ' | ' | ' | ' | $71 | $1 | |||
[1] | Unallocated amount includes a non-recurring gain of $70Â million relating to a confidential resolution of a vendor dispute in 2012. | |||||||||||||
[2] | Net impairment losses on securities include total other-than-temporary impairment losses of $2Â million, $15Â million, and $18Â million recognized in other comprehensive (loss) income, net of $(8)Â million, $(17)Â million, and $(13)Â million reclassified from other comprehensive (loss) income in 2013, 2012, and 2011, respectively. |
Business_Acquisitions_Narrativ
Business Acquisitions (Narrative) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Sep. 01, 2011 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Sep. 01, 2011 | Dec. 14, 2012 | Dec. 14, 2012 | Dec. 14, 2012 |
In Millions, except Share data, unless otherwise specified | Investor Services [Member] | Investor Services [Member] | Investor Services [Member] | Advisor Services [Member] | Advisor Services [Member] | Advisor Services [Member] | OptionsXpress Holdings, Inc. [Member] | OptionsXpress Holdings, Inc. [Member] | OptionsXpress Holdings, Inc. [Member] | OptionsXpress Holdings, Inc. [Member] | OptionsXpress Holdings, Inc. [Member] | OptionsXpress Holdings, Inc. [Member] | Thomas Partners, Inc. [Member] | Thomas Partners, Inc. [Member] | Thomas Partners, Inc. [Member] | |||
Common Stock [Member] | Investor Services [Member] | Advisor Services [Member] | ||||||||||||||||
Business Acquisition [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Business acquisition, consideration paid | ' | ' | ' | ' | ' | ' | ' | ' | ' | $714 | ' | ' | ' | ' | ' | ' | ' | ' |
Common shares issued per each share of acquiree | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1.02 | ' | ' | ' | ' | ' | ' | ' | ' |
Business acquisition, common stock issued share | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 59,000,000 | ' | ' | ' |
Fair value of common stock issued | ' | ' | ' | ' | ' | ' | ' | ' | ' | 710 | ' | ' | ' | ' | ' | ' | ' | ' |
Business acquisition, other noncash consideration | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4 | ' | ' | ' | ' | ' | ' | ' | ' |
Net revenue, acquiree | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 68 | 142 | 179 | ' | ' | ' | ' | ' |
Net income, acquiree | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 8 | 6 | ' | ' | ' | ' | ' |
Business acquisition, intangible assets | ' | ' | ' | ' | ' | ' | ' | ' | ' | 285 | ' | ' | ' | ' | ' | 32 | ' | ' |
Acquisition related costs, after tax, incurred by the Company and excluded from proforma net income | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 16 | ' | ' | ' | ' |
Acquisition related costs, before tax, incurred by optionsXpress Holdings, Inc., prior to the acquisition date and excluded from proforma net income | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 15 | ' | ' | ' | ' |
Amortization of purchase accounting adjustments related to intangible assets of optionsXpress Holdings, Inc., net of tax | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 20 | ' | ' | ' | ' |
Business acquisition in cash | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 85 | ' | ' |
Acquisition-related goodwill | $1,227 | $1,228 | $1,161 | $1,127 | $1,128 | $1,083 | $100 | $100 | $78 | ' | ' | ' | ' | ' | ' | $68 | $54 | $14 |
Intangible assets, amortization period | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '11 years | ' | ' |
Business_Acquisitions_Summary_
Business Acquisitions (Summary of Estimated Fair Value and Useful Lives of Intangible Assets) (Details) (OptionsXpress Holdings, Inc. [Member], USD $) | 0 Months Ended |
In Millions, unless otherwise specified | Sep. 01, 2011 |
Acquired Finite-Lived Intangible Assets [Line Items] | ' |
Estimated Fair Value | $285 |
Customer relationships [Member] | ' |
Acquired Finite-Lived Intangible Assets [Line Items] | ' |
Estimated Fair Value | 200 |
Estimated Useful Life (In Years) | '11 years |
Technology [Member] | ' |
Acquired Finite-Lived Intangible Assets [Line Items] | ' |
Estimated Fair Value | 70 |
Estimated Useful Life (In Years) | '9 years |
Trade name [Member] | ' |
Acquired Finite-Lived Intangible Assets [Line Items] | ' |
Estimated Fair Value | $15 |
Estimated Useful Life (In Years) | '9 years |
Business_Acquisitions_Pro_Form
Business Acquisitions (Pro Forma Results of Operations) (Details) (OptionsXpress Holdings, Inc. [Member], USD $) | 12 Months Ended |
In Millions, except Per Share data, unless otherwise specified | Dec. 31, 2011 |
OptionsXpress Holdings, Inc. [Member] | ' |
Business Acquisition [Line Items] | ' |
Net revenues | $4,857 |
Net income | $896 |
Basic EPS | $0.71 |
Diluted EPS | $0.71 |
The_Charles_Schwab_Corporation2
The Charles Schwab Corporation – Parent Company Only Financial Statements (Condensed Statements of Income) (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||||||||||||
In Millions, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |||
Condensed Income Statements, Captions [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Interest revenue | ' | ' | ' | ' | ' | ' | ' | ' | $2,085 | $1,914 | $1,900 | |||
Interest expense | ' | ' | ' | ' | ' | ' | ' | ' | -105 | -150 | -175 | |||
Net interest revenue | ' | ' | ' | ' | ' | ' | ' | ' | 1,980 | 1,764 | 1,725 | |||
Other revenue – net | ' | ' | ' | ' | ' | ' | ' | ' | 236 | [1] | 256 | [1] | 160 | [1] |
Expenses excluding interest | -937 | -909 | -925 | -959 | -871 | -835 | -851 | -876 | -3,730 | -3,433 | -3,299 | |||
Income tax benefit | ' | ' | ' | ' | ' | ' | ' | ' | -634 | -522 | -528 | |||
Equity in net income of subsidiaries: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Net Income | 319 | 290 | 256 | 206 | 211 | 247 | 275 | 195 | 1,071 | 928 | 864 | |||
Preferred stock dividends | ' | ' | ' | ' | ' | ' | ' | ' | 61 | 45 | ' | |||
Net Income Available to Common Stockholders | 297 | 282 | 233 | 198 | 189 | 238 | 261 | 195 | 1,010 | 883 | 864 | |||
Parent Company [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Condensed Income Statements, Captions [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Interest revenue | ' | ' | ' | ' | ' | ' | ' | ' | 4 | 6 | 4 | |||
Interest expense | ' | ' | ' | ' | ' | ' | ' | ' | -65 | -97 | -103 | |||
Net interest revenue | ' | ' | ' | ' | ' | ' | ' | ' | -61 | -91 | -99 | |||
Other revenue – net | ' | ' | ' | ' | ' | ' | ' | ' | ' | -30 | 8 | |||
Expenses excluding interest | ' | ' | ' | ' | ' | ' | ' | ' | -28 | -23 | -30 | |||
Loss before income tax benefit and equity in net income of subsidiaries | ' | ' | ' | ' | ' | ' | ' | ' | -89 | -144 | -121 | |||
Income tax benefit | ' | ' | ' | ' | ' | ' | ' | ' | 38 | 58 | 43 | |||
Loss before equity in net income of subsidiaries | ' | ' | ' | ' | ' | ' | ' | ' | -51 | -86 | -78 | |||
Equity in net income of subsidiaries: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Equity in undistributed net income of subsidiaries | ' | ' | ' | ' | ' | ' | ' | ' | 830 | 662 | 600 | |||
Dividends from bank subsidiary | ' | ' | ' | ' | ' | ' | ' | ' | 163 | 50 | 150 | |||
Dividends from non-bank subsidiaries | ' | ' | ' | ' | ' | ' | ' | ' | 129 | 302 | 192 | |||
Net Income | ' | ' | ' | ' | ' | ' | ' | ' | 1,071 | 928 | 864 | |||
Preferred stock dividends | ' | ' | ' | ' | ' | ' | ' | ' | 61 | 45 | ' | |||
Net Income Available to Common Stockholders | ' | ' | ' | ' | ' | ' | ' | ' | $1,010 | $883 | $864 | |||
[1] | Unallocated amount includes a non-recurring gain of $70Â million relating to a confidential resolution of a vendor dispute in 2012. |
The_Charles_Schwab_Corporation3
The Charles Schwab Corporation – Parent Company Only Financial Statements (Condensed Balance Sheets) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 |
In Millions, unless otherwise specified | ||||
Assets | ' | ' | ' | ' |
Cash and cash equivalents | $7,728 | $12,663 | $8,679 | $4,931 |
Other securities owned — at fair value | 517 | 636 | ' | ' |
Other assets | 746 | 813 | ' | ' |
Total assets | 143,642 | 133,637 | ' | ' |
Liabilities and Stockholders' Equity | ' | ' | ' | ' |
Accrued expenses and other liabilities | 1,586 | 1,641 | ' | ' |
Long-term debt | 1,903 | 1,632 | ' | ' |
Total liabilities | 133,261 | 124,048 | ' | ' |
Stockholders' equity | 10,381 | 9,589 | 7,714 | 6,226 |
Total liabilities and stockholders' equity | 143,642 | 133,637 | ' | ' |
Parent Company [Member] | ' | ' | ' | ' |
Assets | ' | ' | ' | ' |
Cash and cash equivalents | 700 | 1,339 | 852 | 1,149 |
Receivables from subsidiaries | 162 | 80 | ' | ' |
Other securities owned — at fair value | 80 | 74 | ' | ' |
Loans to non-bank subsidiaries | 980 | 404 | ' | ' |
Investment in non-bank subsidiaries | 3,828 | 3,615 | ' | ' |
Investment in bank subsidiary | 6,576 | 6,022 | ' | ' |
Other assets | 65 | 88 | ' | ' |
Total assets | 12,391 | 11,622 | ' | ' |
Liabilities and Stockholders' Equity | ' | ' | ' | ' |
Accrued expenses and other liabilities | 187 | 482 | ' | ' |
Payables to subsidiaries | 9 | 14 | ' | ' |
Long-term debt | 1,814 | 1,537 | ' | ' |
Total liabilities | 2,010 | 2,033 | ' | ' |
Stockholders' equity | 10,381 | 9,589 | ' | ' |
Total liabilities and stockholders' equity | $12,391 | $11,622 | ' | ' |
The_Charles_Schwab_Corporation4
The Charles Schwab Corporation – Parent Company Only Financial Statements (Condensed Statements of Cash Flows) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Cash Flows from Operating Activities | ' | ' | ' |
Net income | $1,071 | $928 | $864 |
Adjustments to reconcile net income to net cash provided by operating activities: | ' | ' | ' |
Provision for deferred income taxes | -21 | 5 | 52 |
Other | 15 | 26 | 9 |
Net change in: | ' | ' | ' |
Other securities owned | 119 | -43 | -231 |
Other assets | 17 | 10 | -15 |
Accrued expenses and other liabilities | 400 | -237 | -183 |
Net cash provided by operating activities | 1,656 | 1,266 | 2,464 |
Cash Flows from Investing Activities | ' | ' | ' |
Other investing activities | 2 | 3 | 7 |
Net cash used for investing activities | -20,050 | -16,260 | -8,667 |
Cash Flows from Financing Activities | ' | ' | ' |
Issuance of commercial paper | ' | 300 | ' |
Repayment of commercial paper | -300 | ' | ' |
Issuance of long-term debt | 275 | 350 | ' |
Repayment of long-term debt | -6 | -732 | -116 |
Premium paid on debt exchange | ' | -19 | ' |
Net proceeds from preferred stock offering | ' | 863 | ' |
Dividends paid | -368 | -337 | -295 |
Proceeds from stock options exercised and other | 258 | 35 | 96 |
Other financing activities | 5 | -5 | 2 |
Net cash (used for) provided by financing activities | 13,459 | 18,978 | 9,951 |
(Decrease) Increase in Cash and Cash Equivalents | -4,935 | 3,984 | 3,748 |
Cash and Cash Equivalents at Beginning of Year | 12,663 | 8,679 | 4,931 |
Cash and Cash Equivalents at End of Year | 7,728 | 12,663 | 8,679 |
Parent Company [Member] | ' | ' | ' |
Cash Flows from Operating Activities | ' | ' | ' |
Net income | 1,071 | 928 | 864 |
Adjustments to reconcile net income to net cash provided by operating activities: | ' | ' | ' |
Equity in undistributed earnings of subsidiaries | -830 | -662 | -591 |
Provision for deferred income taxes | -11 | 9 | 3 |
Other | -4 | 39 | 1 |
Net change in: | ' | ' | ' |
Other securities owned | -5 | 3 | 6 |
Other assets | 29 | -21 | 26 |
Accrued expenses and other liabilities | 13 | -5 | -76 |
Net cash provided by operating activities | 263 | 291 | 233 |
Cash Flows from Investing Activities | ' | ' | ' |
Due from subsidiaries - net | -546 | 43 | 24 |
Increase in investments in subsidiaries | -225 | -307 | -366 |
Other investing activities | -1 | ' | 8 |
Net cash used for investing activities | -772 | -264 | -334 |
Cash Flows from Financing Activities | ' | ' | ' |
Issuance of commercial paper | ' | 300 | ' |
Repayment of commercial paper | -300 | ' | ' |
Issuance of long-term debt | 275 | 350 | ' |
Repayment of long-term debt | ' | -727 | ' |
Premium paid on debt exchange | ' | -19 | ' |
Net proceeds from preferred stock offering | ' | 863 | ' |
Dividends paid | -368 | -337 | -295 |
Proceeds from stock options exercised and other | 258 | 35 | 96 |
Other financing activities | 5 | -5 | 3 |
Net cash (used for) provided by financing activities | -130 | 460 | -196 |
(Decrease) Increase in Cash and Cash Equivalents | -639 | 487 | -297 |
Cash and Cash Equivalents at Beginning of Year | 1,339 | 852 | 1,149 |
Cash and Cash Equivalents at End of Year | $700 | $1,339 | $852 |
Quarterly_Financial_Informatio2
Quarterly Financial Information (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||||||||||||||||||||
In Millions, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |||||||||||
Quarterly Financial Information [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||
Net Revenues | $1,435 | $1,373 | $1,337 | $1,290 | $1,215 | $1,196 | $1,283 | $1,189 | $5,435 | $4,883 | $4,691 | |||||||||||
Expenses Excluding Interest | 937 | 909 | 925 | 959 | 871 | 835 | 851 | 876 | 3,730 | 3,433 | 3,299 | |||||||||||
Net Income | 319 | 290 | 256 | 206 | 211 | 247 | 275 | 195 | 1,071 | 928 | 864 | |||||||||||
Net Income Available to Common Stockholders | $297 | $282 | $233 | $198 | $189 | $238 | $261 | $195 | $1,010 | $883 | $864 | |||||||||||
Weighted Average Common Shares Outstanding - Diluted | 1,304 | 1,296 | 1,288 | 1,282 | 1,278 | 1,275 | 1,274 | 1,273 | 1,293 | [1] | 1,275 | [1] | 1,229 | [1] | ||||||||
Earnings Per Common Share - Basic | $0.23 | $0.22 | $0.18 | $0.15 | $0.15 | $0.19 | $0.20 | $0.15 | $0.78 | $0.69 | $0.70 | |||||||||||
Earnings Per Common Share - Diluted | $0.23 | $0.22 | $0.18 | $0.15 | $0.15 | $0.19 | $0.20 | $0.15 | $0.78 | $0.69 | $0.70 | |||||||||||
Dividends Declared Per Common Share | $0.06 | $0.06 | $0.06 | $0.06 | $0.06 | $0.06 | $0.06 | $0.06 | $0.24 | $0.24 | $0.24 | |||||||||||
Range of Common Stock Price Per Share: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||
High | $26 | $22.69 | $21.23 | $18.11 | $14.47 | $14.43 | $14.76 | $15.38 | ' | ' | ' | |||||||||||
Low | $20.57 | $20.74 | $16.21 | $15.05 | $12.50 | $12.14 | $11.83 | $11.61 | ' | ' | ' | |||||||||||
Range of Price/Earnings Ratio: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||
High | 33 | [2] | 32 | [2] | 32 | [2] | 26 | [2] | 21 | [2] | 22 | [2] | 22 | [2] | 23 | [2] | ' | ' | ' | |||
Low | 26 | [2] | 30 | [2] | 24 | [2] | 22 | [2] | 18 | [2] | 18 | [2] | 18 | [2] | 18 | [2] | ' | ' | ' | |||
[1] | Antidilutive stock options and restricted stock awards excluded from the calculation of diluted EPS totaled 34Â million, 74Â million, and 63Â million shares in 2013, 2012, and 2011, respectively. | |||||||||||||||||||||
[2] | Price/earnings ratio is computed by dividing the high and low market prices by diluted earnings per common share for the preceding 12-month period ending on the last day of the quarter presented. |
Valuation_and_Qualifying_Accou1
Valuation and Qualifying Accounts (Details) (Allowance for doubtful accounts of brokerage clients [Member], USD $) | 12 Months Ended | |||||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |||
Allowance for doubtful accounts of brokerage clients [Member] | ' | ' | ' | |||
Valuation and Qualifying Accounts Disclosure [Line Items] | ' | ' | ' | |||
Balance at Beginning of Year | $1 | [1] | $2 | [1] | $1 | [1] |
Charged to Expense | 2 | [1] | 4 | [1] | 6 | [1] |
Other | 1 | [1],[2] | ' | 3 | [1],[2] | |
Written off | -4 | [1] | -5 | [1] | -8 | [1] |
Balance at End of Year | ' | $1 | [1] | $2 | [1] | |
[1] | Excludes banking-related valuation and qualifying accounts. See “Item 8 - Financial Statements and Supplementary Data - Notes to Consolidated Financial Statements - 6. Loans to Banking Clients and Related Allowance for Loan Losses.†| |||||
[2] | Includes collections of previously written-off accounts. |