Charles Schwab 2015 Annual Report Download - page 109

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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)
- 89 -
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.
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.
On August 3, 2015, the Company issued and sold 24 million depositary shares, each representing a 1/40th ownership interest
in a share of 6.00% non-cumulative perpetual preferred stock, Series C, $0.01 par value, with a liquidation preference of
$1,000 per share (equivalent to $25 per depositary share).
The Series C Preferred Stock has no stated maturity and 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 C 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 C 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 C Preferred
Stock for the immediately preceding dividend period. The Series C Preferred Stock is redeemable at the Company’s option,
in whole or in part, on any dividend payment date on or after December 1, 2020 or, in whole but not in part, within 90 days
following a regulatory capital treatment event as defined in its Certificate of Designations.
19. Accumulated Other Comprehensive Income
Accumulated other comprehensive income represents cumulative gains and losses that are not reflected in earnings. The
components of other comprehensive income (loss) are as follows:
Year Ended December 31, 2015 2014 2013
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 gain (loss) $ (477) $ 178 $ (299) $ 255 $ (95) $ 160 $ (468) $ 176 $ (292)
Reclassification of impairment charges
included in net impairment losses on
securities
- - - 1 (1) - 10 (4) 6
Other reclassifications included in
other revenue - - - (7) 3 (4) (7) 3 (4)
Change in net unrealized gain on
securities available for sale (477) 178 (299) 249 (93) 156 (465) 175 (290)
Other - - - - - - 1 - 1
Other comprehensive income (loss) $ (477) $ 178 $ (299) $ 249 $ (93) $ 156 $ (464) $ 175 $ (289)