Charles Schwab 2010 Annual Report Download - page 98
Download and view the complete annual report
Please find page 98 of the 2010 Charles Schwab annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.-
1 -
2
-
3
-
4
-
5
-
6
-
7
-
8
-
9
-
10
-
11
-
12
-
13
-
14
-
15
-
16
-
17
-
18
-
19
-
20
-
21
-
22
-
23
-
24
-
25
-
26
-
27
-
28
-
29
-
30
-
31
-
32
-
33
-
34
-
35
-
36
-
37
-
38
-
39
-
40
-
41
-
42
-
43
-
44
-
45
-
46
-
47
-
48
-
49
-
50
-
51
-
52
-
53
-
54
-
55
-
56
-
57
-
58
-
59
-
60
-
61
-
62
-
63
-
64
-
65
-
66
-
67
-
68
-
69
-
70
-
71
-
72
-
73
-
74
-
75
-
76
-
77
-
78
-
79
-
80
-
81
-
82
-
83
-
84
-
85
-
86
-
87
-
88 -
89 -
90 -
91 -
92 -
93 -
94 -
95 -
96 -
97 -
98 -
99 -
100 -
101 -
102 -
103 -
104 -
105 -
106 -
107 -
108 -
109
-
110
-
111
-
112
-
113
-
114
-
115
-
116
-
117
-
118
-
119
-
120
-
121
-
122
-
123
-
124
-
125
-
126
-
127
-
128
-
129
-
130
-
131
-
132
-
133
-
134
-
135
 |
 |
THE CHARLES SCHWAB CORPORATION
Notes to Consolidated Financial Statements
(Tabular Amounts in Millions, Except Per Share Data, Option Price Amounts, Ratios, or as Noted)
Income tax expense from discontinued operations was $18 million in 2008 and was related to the determination of the final income
tax gain on the sale of U.S. Trust Corporation, which was sold in 2007.
The temporary differences that created deferred tax assets and liabilities are detailed below:
The Company determined that no valuation allowance against deferred tax assets at December 31, 2010 and 2009 was necessary.
The effective income tax rate on income from continuing operations before taxes differs from the amount computed by applying the
federal statutory income tax rate as follows:
The effective income tax rate including discontinued operations was 40.2% in 2008. The difference between the effective income tax
rate on income from continuing operations and the effective income tax rate including discontinued operations was primarily due to
the $18 million income tax expense in 2008 discussed above.
-79 -
December 31, 2010 2009
Deferred tax assets:
Em
p
lo
y
ee com
p
ensation, severance, and benefits
$ 124
$91
Facilities lease commitments
44
69
State and local taxes
8
15
Reserves and allowances
104
36
Unrealized loss on securities available for sale
–
net
—
144
Other
10
4
Total deferred tax assets
290
359
Deferred tax liabilities:
Ca
p
italized internal-use software develo
p
ment costs
(34)
(42)
De
p
reciation and amortization
(45)
(33)
Deferred cancellation of debt income
(11)
(11)
Deferred loan costs
(20)
(20)
Unrealized
g
ain on securities available for sale
–
net
(10)
—
Other
—
(4)
Total deferred tax liabilities
(120)
(110)
Deferred tax asset
–
net
$170
$249
Year Ended December 31, 2010 2009 2008
Federal statutor
y
income tax rate
35.
0
%
35.
0
%
35.
0
%
State income taxes, net of federal tax benefit
3.3
3.7
4.4
Non-deductible
p
enalties
2.7
—
—
Other
0.7
(0.4)
(0.1)
Effective income tax rate
41.7%
38.3%
39.3%
Amount reflects the im
p
act of re
g
ulator
y
settlements relatin
g
to the Schwab YieldPlus Fund in 2010.
(1)
(1)