Charles Schwab 2015 Annual Report Download - page 99

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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)
- 79 -
14. Borrowings
Long-term debt including unamortized debt discounts and premiums, where applicable, consists of the following:
December 31,   2015 2014
Senior Notes   $ 2,565 $ 1,567
Medium-Term Notes, Series A 250 249
Finance lease obligation 
75 83
Total long-term debt $ 2,890 $ 1,899
CSC has a universal automatic shelf registration statement (Shelf Registration Statement) on file with the SEC, which enables
CSC to issue debt, equity, and other securities.
The Senior Notes outstanding at December 31, 2015, have maturities ranging from 2018 to 2026 and bear interest at a
weighted-average rate of 3.03% with interest payable semi-annually.
On November 13, 2015, CSC issued $350 million aggregate principal amount of Senior Notes that mature in 2026. The
Senior Notes have a fixed interest rate of 3.450% with interest payable semi-annually.
On March 10, 2015, CSC issued $625 million aggregate principal amount of Senior Notes that mature in 2018 and
$375 million aggregate principal amount of Senior Notes that mature in 2025. The Senior Notes due 2018 and 2025 have a
fixed interest rate of 1.50% and 3.00%, respectively, with interest payable semi-annually.
The Medium-Term Notes, Series A (Medium-Term Notes) outstanding at December 31, 2015, mature in 2017 and have a
fixed interest rate of 6.375% with interest payable semi-annually.
Schwab has a finance lease obligation related to an office building and land under a 20-year lease. The remaining finance
lease obligation of $75 million at December 31, 2015, is being reduced by a portion of the lease payments over the remaining
lease term of nine years.
Annual maturities on long-term debt outstanding at December 31, 2015, are as follows:
2016 $ 7
2017 258
2018 908
2019 8
2020 709
Thereafter 1,016
Total maturities 2,906
Unamortized discount, net (16)
Total long-term debt $ 2,890
CSC has authorization from its Board of Directors to issue Commercial Paper Notes not to exceed $1.5 billion. Management
has set a current limit for the commercial paper program not to exceed the amount of the committed, unsecured credit facility,
which was $750 million at December 31, 2015. 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, 2015 or 2014.
CSC maintains a $750 million committed, unsecured credit facility with a group of banks, which is scheduled to expire in
June 2016. This facility replaced a similar facility that expired in June 2015. The funds under this facility are available for
general corporate purposes. The financial covenants 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, adjusted to
exclude accumulated other comprehensive income. At December 31, 2015, the minimum level of stockholders’ equity