Charles Schwab 2010 Annual Report Download - page 59

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THE CHARLES SCHWAB CORPORATION
Management’s Discussion and Analysis of Financial Condition and Results of Operations
(Tabular Amounts in Millions, Except Ratios, or as Noted)
•
target capital ratios (see “Liquidity and Capital Resources” and “Item 8
–
Financial Statements and Supplementary Data
–
Notes to Consolidated Financial Statements
–
23. Re
g
ulator
y
Re
q
uirements”);
•
capital expenditures (see “Liquidity and Capital Resources
–
Capital Resources”);
•
the impact of changes in management’s estimates on the Company’s results of operations (see “Critical Accounting
Estimates”);
•
the impact of changes in the likelihood of indemnification and guarantee payment obligations on the Company’s results of
operations (see “Item 8 – Financial Statements and Supplementary Data – Notes to Consolidated Financial Statements –
14. Commitments and Contin
g
ent Liabilities”); and
Achievement of the expressed beliefs, objectives and expectations described in these statements is subject to certain risks and
uncertainties that could cause actual results to differ materially from the expressed beliefs, objectives, and expectations. Readers are
cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this Annual Report on
Form 10-K or, in the case of documents incorporated by reference, as of the date of those documents.
Important factors that may cause actual results to differ include, but are not limited to:
•
the impact on the Company’s results of operations of recording stock option expense (see “Item 8
–
Financial Statements
and Supplementary Data – Notes to Consolidated Financial Statements – 19. Employee Incentive, Deferred Compensation,
and Retirement Plans”).
•
changes in general economic and financial market conditions;
•
changes in revenues and profit margin due to changes in interest rates;
•
the Company’s ability to attract and retain clients and grow client assets and relationships;
•
the Company’s ability to develop and launch new products, services and capabilities in a timely and successful manner;
•
adverse developments in litigation or regulatory matters;
•
the extent of any charges associated with litigation and regulatory matters;
•
amounts recovered on insurance policies;
•
fluctuations in client asset values due to changes in equity valuations;
•
the performance of securities available for sale;
•
the level of interest rates, including yields available on money market mutual fund eligible investments;
•
the amount of loans to the Company’s brokerage and banking clients;
•
the adverse impact of financial reform legislation and related regulations;
•
the level of the Company’s stock repurchase activity;
•
the level of brokerage client cash balances and deposits from banking clients;
•
the availability and terms of external financing;
•
the timing and impact of changes in the Company’s level of investments in technology and furniture and equipment; and
Certain of these factors, as well as general risk factors affecting the Company, are discussed in greater detail in this Annual Report on
Form 10-K, including “Item 1A – Risk Factors.”
- 42 -
•
potential breaches of contractual terms for which the Company has indemnification and guarantee obligations.