Charles Schwab 2014 Annual Report Download - page 98

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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)
- 80 -
Financial Instruments Not Recorded at Fair Value
Descriptions of the valuation methodologies and assumptions used to estimate the fair value of financial instruments not
recorded at fair value are also described in note “2 – Summary of Significant Accounting Policies.” There were no significant
changes in these methodologies or assumptions during 2014. The following tables present the fair value hierarchy for
financial instruments not recorded at fair value:
Quoted Prices
in Active Markets Significant Significant
for Identical Other Observable Unobservable
Carrying Assets Inputs Inputs Balance at
December 31, 2014 Amount (Level 1) (Level 2) (Level 3) Fair Value
Assets:
Cash and cash equivalents $ 9,189 $ - $ 9,189 $ - $ 9,189
Cash and investments segregated and
on deposit for regulatory purposes 14,466 - 14,466 - 14,466
Receivables from brokers, dealers, and
clearing organizations 469 - 469 - 469
Receivables from brokerage clients – net 15,666 - 15,666 - 15,666
Securities held to maturity:
U.S. agency mortgage-backed securities 33,388 - 33,745 - 33,745
Non-agency commercial mortgage-backed
securities 1,001 - 998 - 998
Total securities held to maturity 34,389 - 34,743 - 34,743
Loans to banking clients: (1)
Residential real estate mortgages 8,127 - 8,158 - 8,158
Home equity loans and lines of credit 2,955 - 3,026 - 3,026
Personal loans secured by securities 2,320 - 2,320 - 2,320
Other 39 - 38 - 38
Total loans to banking clients 13,441 - 13,542 - 13,542
Other assets 76 - 76 - 76
Total $ 87,696 $ - $ 88,151 $ - $ 88,151
Liabilities:
Deposits from banking clients $ 102,815 $ - $ 102,815 $ - $ 102,815
Payables to brokers, dealers, and clearing
organizations 2,004 - 2,004 - 2,004
Payables to brokerage clients 34,305 - 34,305 - 34,305
Accrued expenses and other liabilities 687 - 687 - 687
Long-term debt 1,899 - 2,010 - 2,010
Total $ 141,710 $ - $ 141,821 $ - $ 141,821
(1) The carrying value of loans to banking clients excludes the allowance for loan losses of $42 million at December 31,
2014.