Charles Schwab 2008 Annual Report Download - page 14

THE CHARLES SCHWAB CORPORATION
Annual Report On Form 10-K
For Fiscal Year Ended December 31, 2008
TABLE OF CONTENTS
Part I
Item 1. Business ------------------------------------------------------------------------------------------------------------------------------- 1
General Corporate Overview ----------------------------------------------------------------------------------------------- 1
Acquisition and Divestitures ------------------------------------------------------------------------------------------------ 1
Business Strategy and Competitive Environment ----------------------------------------------------------------------- 1
Products and Services ------------------------------------------------------------------------------------------------------- 2
Regulation --------------------------------------------------------------------------------------------------------------------- 5
Sources of Net Revenues ---------------------------------------------------------------------------------------------------- 6
Available Information ------------------------------------------------------------------------------------------------------- 6
Item 1A. Risk Factors -------------------------------------------------------------------------------------------------------------------------- 6
Item 1B. Unresolved Securities and Exchange Commission Staff Comments --------------------------------------------------------- 11
Item 2. Properties ----------------------------------------------------------------------------------------------------------------------------- 11
Item 3. Legal Proceedings ------------------------------------------------------------------------------------------------------------------- 11
Item 4. Submission of Matters to a Vote of Security Holders -------------------------------------------------------------------------- 11
Part II
Item 5. Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases
of Equity Securities ---------------------------------------------------------------------------------------------------------- 12
Item 6. Selected Financial Data ------------------------------------------------------------------------------------------------------------- 14
Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations ----------------------------- 15
Overview ---------------------------------------------------------------------------------------------------------------------- 15
Current Market Environment ----------------------------------------------------------------------------------------------- 17
Results of Operations -------------------------------------------------------------------------------------------------------- 17
Liquidity and Capital Resources ------------------------------------------------------------------------------------------- 26
Risk Management ------------------------------------------------------------------------------------------------------------ 31
Fair Value of Financial Instruments --------------------------------------------------------------------------------------- 36
Critical Accounting Estimates ---------------------------------------------------------------------------------------------- 36
Forward-Looking Statements ----------------------------------------------------------------------------------------------- 38
Item 7A. Quantitative and Qualitative Disclosures About Market Risk ----------------------------------------------------------------- 40
Item 8. Financial Statements and Supplementary Data ---------------------------------------------------------------------------------- 42
Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure ----------------------------- 83
Item 9A. Controls and Procedures ------------------------------------------------------------------------------------------------------------ 83
Item 9B. Other Information ------------------------------------------------------------------------------------------------------------------- 83
Part III
Item 10. Directors, Executive Officers, and Corporate Governance -------------------------------------------------------------------- 83
Item 11. Executive Compensation ----------------------------------------------------------------------------------------------------------- 85
Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters------------------ 85
Item 13. Certain Relationships and Related Transactions, and Director Independence ---------------------------------------------- 85
Item 14. Principal Accountant Fees and Services ------------------------------------------------------------------------------------------ 86
Part IV
Item 15. Exhibits and Financial Statement Schedule -------------------------------------------------------------------------------------- 86
Exhibit Index ----------------------------------------------------------------------------------------------------------------- 86
Signatures --------------------------------------------------------------------------------------------------------------------- 91
Index to Financial Statement Schedule ----------------------------------------------------------------------------------- F-1