Charles Schwab 2011 Annual Report Download - page 96

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THE CHARLES SCHWAB CORPORATION
Notes to Consolidated Financial Statements
(Tabular Amounts in Millions, Except Per Share Data, Option Price Amounts, Ratios, or as Noted)
- 68 -
11. Deposits from Banking Clients
Deposits from banking clients consist of interest-bearing and noninterest-bearing deposits as follows:
December 31, 2011 2010
Interest-bearing deposits:
Deposits swept from brokerage accounts $ 40,617 $ 30,980
Checking 10,765 9,890
Savings and other 8,997 9,241
Total interest-bearing deposits 60,379 50,111
Noninterest-bearing deposits 475 479
Total deposits from banking clients $ 60,854 $ 50,590
Demand deposit overdrafts included as other loans within loans to banking clients were not material at December 31, 2011 or
2010.
In 2010, the Company entered into deposit account agreements with existing trust clients and accordingly transferred balances
totaling $442 million from payables to brokerage clients and accrued expenses and other liabilities to noninterest-bearing
deposits from banking clients.
12. Payables to Brokers, Dealers, and Clearing Organizations
Payables to brokers, dealers, and clearing organizations include securities loaned of $852 million and $1.3 billion at
December 31, 2011 and 2010, 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, 2011 and 2010.
13. 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 $30.6 billion and
$26.2 billion at December 31, 2011 and 2010, respectively. The average rate paid on cash balances in interest-bearing
brokerage client accounts was 0.01% in 2011 and 2010.
14. Borrowings
Long-term debt including unamortized debt discounts and premiums, where applicable, consists of the following:
December 31, 2011 2010
Senior Notes $ 1,450 $ 1,449
Senior Medium-Term Notes, Series A 249 249
Junior Subordinated Notes 202 202
Finance lease obligation 100 106
Total long-term debt $ 2,001 $ 2,006
CSC has a universal automatic shelf registration statement (Shelf Registration Statement) on file with the Securities and
Exchange Commission (SEC), which enables CSC to issue debt, equity and other securities. This Shelf Registration Statement
was filed in December 2011 to replace the prior Shelf Registration Statement, which expired in the same month.