Charles Schwab 2008 Annual Report Download - page 70

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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)
- 56 -
8. Other Assets
The components of other assets are as follows:
December 31, 2008 2007
Deferred tax asset – net $ 502 $ 254
Accounts receivable (1) 216 326
Interest and dividends receivable 92 110
Prepaid expenses 66 53
Other investments 45 42
Intangible assets – net 24 23
Other 126 42
Total other assets $ 1,071 $ 850
(1) Accounts receivable include accrued service fee income and receivable from loan servicer.
9. Deposits from Banking Clients
Deposits from banking clients consist of money market, high-yield investor checking, and other savings deposits, certificates
of deposit, and noninterest-bearing deposits. Interest-bearing deposits were $23.8 billion and $13.8 billion at December 31,
2008 and 2007, respectively. Noninterest-bearing deposits were not material at December 31, 2008 and 2007. Demand
deposit overdrafts included as other loans within loans to banking clients were not material at December 31, 2008 and 2007.
10. Payables to Brokers, Dealers, and Clearing Organizations
Payables to brokers, dealers, and clearing organizations consist primarily of securities loaned of $883 million and $1.7 billion
at December 31, 2008 and 2007, respectively. The cash collateral received from counterparties under securities lending
transactions was equal to or greater than the market value of the securities loaned.
11. 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 $15.8 billion and
$15.0 billion at December 31, 2008 and 2007, respectively. The average rate paid on cash balances in interest-bearing
brokerage client accounts was 0.36% and 2.23% in 2008 and 2007, respectively.
12. Borrowings
Long-term debt net of unamortized debt discounts, where applicable, consists of the following:
December 31, 2008 2007
Senior Medium-Term Notes, Series A $ 458 $ 473
Junior subordinated notes 300 299
Finance lease obligation 116 121
Fair value adjustment 9 6
Total long-term debt $ 883 $ 899