Charles Schwab 2010 Annual Report Download - page 92

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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)
Fair Value of Assets and Liabilities Not Recorded at Fair Value
December 31, 2009
Quoted Prices
in Active Markets
for Identical
Assets
(Level 1)
Significant
Other Observable
Inputs
(Level 2)
Significant
Unobservable
Inputs
(Level 3)
Balance at
Fair Value
Cash e
q
uivalents :
Mone
y
market funds
$ 2,278
$
—
$
—
$ 2,278
Commercial
p
a
p
er
—
37
0
—
37
0
Total cash e
q
uivalents
2,278
37
0
—
2,648
Investments segregated and on deposit for regulatory
p
ur
p
oses:
U.S. Government securities
—
2,681
—
2,681
Certificates of de
p
osit
—
2,091
—
2,091
Cor
p
orate debt securities
—
2,135
—
2,135
Commercial
p
a
p
er
—
10
0
—
10
0
Total investments segregated and on deposit
for re
g
ulator
y
p
ur
p
oses
—
7,007
—
7,007
Other securities owned:
Schwab Funds mone
y
market funds
321
—
—
321
E
q
uit
y
and bond mutual funds
103
—
—
103
State and munici
p
al debt obli
g
ations
—
49
—
49
Equity, U.S. Government and corporate debt, and
other securities
2
21
—
23
Commercial
p
a
p
er
—
22
0
—
22
0
Certificates of de
p
osit
—
20
0
—
20
0
Total other securities owned
426
49
0
—
916
Securities available for sale:
U.S. agency residential mortgage-backed
securities
—
11,779
—
11,779
Non-agency residential mortgage-backed
securities
—
1,941
—
1,941
U.S. a
g
enc
y
notes
—
2,978
—
2,978
Asset-backed securities
—
1,089
—
1,089
Cor
p
orate debt securities
—
2,380
—
2,380
Certificates of de
p
osit
—
1,953
—
1,953
Total securities available for sale
—
22,120
—
22,12
0
Total
$ 2,704
$ 29,987
$
—
$ 32,691
Beginning in 2010, the fair value information for certain cash equivalents was included. Information as of December 31, 2009,
was recast to reflect this chan
g
e.
Descriptions of the valuation methodologies and assumptions used to estimate the fair value of assets and liabilities not recorded at
fair value are described below. There were no significant changes in these methodologies or assumptions during 2010.
Other cash equivalents, receivables, payables, and accrued expenses and other liabilities include cash and highly liquid investments,
receivables and payables from/ to brokers, dealers and clearing organizations, receivables and payables from/ to brokerage clients,
and drafts, accounts, taxes, interest, and compensation payable. Assets and liabilities in these categories are short-term in nature and
accordingly are recorded at amounts that approximate fair value.
Cash and investments segregated and on deposit for regulatory purposes include securities purchased under resale agreements.
Securities purchased under resale agreements are recorded at par value plus accrued interest. Securities purchased under resale
agreements are short-term in nature and are backed by collateral that both exceeds the carrying value of the resale agreement and is
highly liquid in nature. Accordingly, the carrying value approximates fair value.
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