|
|
|
x
|
Quarterly report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
|
¨
|
Transition report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
|
|
|
Delaware
|
|
82-0543156
|
(State or other jurisdiction of
incorporation or organization)
|
|
(I.R.S. Employer
Identification No.)
|
|
Large accelerated filer
|
|
x
|
|
Accelerated filer
|
|
¨
|
|
|
|
|
|
|
|
Non-accelerated filer
|
|
¨
(Do not check if a smaller reporting company)
|
|
Smaller reporting company
|
|
¨
|
|
|
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Page No.
|
|
|
|
|
|
|
|
|
|
Item 1.
|
|
|
|
||
|
||
|
||
|
||
|
||
|
||
|
|
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Item 2.
|
||
|
|
|
Item 3.
|
||
|
|
|
Item 4.
|
||
|
|
|
|
|
|
|
|
|
Item 1.
|
||
|
|
|
Item 1A.
|
||
|
|
|
Item 2.
|
||
|
|
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Item 6.
|
||
|
|
|
|
|
June 30,
2015 |
|
September 30,
2014 |
||||
|
(In millions)
|
||||||
ASSETS
|
|
|
|
||||
Cash and cash equivalents
|
$
|
2,233
|
|
|
$
|
1,460
|
|
Cash and investments segregated and on deposit for regulatory purposes
|
4,425
|
|
|
5,116
|
|
||
Receivable from brokers, dealers and clearing organizations
|
1,144
|
|
|
1,108
|
|
||
Receivable from clients, net
|
12,868
|
|
|
11,639
|
|
||
Receivable from affiliates
|
107
|
|
|
99
|
|
||
Other receivables, net
|
141
|
|
|
147
|
|
||
Securities owned, at fair value
|
412
|
|
|
332
|
|
||
Property and equipment at cost, net
|
531
|
|
|
543
|
|
||
Goodwill
|
2,467
|
|
|
2,467
|
|
||
Acquired intangible assets, net
|
684
|
|
|
751
|
|
||
Other assets
|
147
|
|
|
169
|
|
||
Total assets
|
$
|
25,159
|
|
|
$
|
23,831
|
|
LIABILITIES AND STOCKHOLDERS’ EQUITY
|
|
|
|
||||
Liabilities:
|
|
|
|
||||
Payable to brokers, dealers and clearing organizations
|
$
|
2,414
|
|
|
$
|
2,421
|
|
Payable to clients
|
15,070
|
|
|
14,497
|
|
||
Accounts payable and other liabilities
|
568
|
|
|
595
|
|
||
Payable to affiliates
|
6
|
|
|
5
|
|
||
Notes payable
|
—
|
|
|
150
|
|
||
Long-term debt
|
1,810
|
|
|
1,101
|
|
||
Deferred income taxes
|
298
|
|
|
314
|
|
||
Total liabilities
|
20,166
|
|
|
19,083
|
|
||
Stockholders’ equity:
|
|
|
|
||||
Preferred stock, $0.01 par value; 100 million shares authorized, none issued
|
—
|
|
|
—
|
|
||
Common stock, $0.01 par value; one billion shares authorized; 631 million shares issued;
June 30, 2015 - 543 million shares outstanding;
September 30, 2014 - 545 million shares outstanding
|
6
|
|
|
6
|
|
||
Additional paid-in capital
|
1,638
|
|
|
1,618
|
|
||
Retained earnings
|
4,904
|
|
|
4,551
|
|
||
Treasury stock, common, at cost:
June 30, 2015 - 88 million shares;
September 30, 2014 - 86 million shares
|
(1,529
|
)
|
|
(1,409
|
)
|
||
Accumulated other comprehensive loss
|
(26
|
)
|
|
(18
|
)
|
||
Total stockholders’ equity
|
4,993
|
|
|
4,748
|
|
||
Total liabilities and stockholders’ equity
|
$
|
25,159
|
|
|
$
|
23,831
|
|
|
Three Months Ended June 30,
|
|
Nine Months Ended June 30,
|
||||||||||||
|
2015
|
|
2014
|
|
2015
|
|
2014
|
||||||||
|
(In millions, except per share amounts)
|
||||||||||||||
Revenues:
|
|
|
|
|
|
|
|
||||||||
Transaction-based revenues:
|
|
|
|
|
|
|
|
||||||||
Commissions and transaction fees
|
$
|
328
|
|
|
$
|
317
|
|
|
$
|
1,036
|
|
|
$
|
1,019
|
|
Asset-based revenues:
|
|
|
|
|
|
|
|
||||||||
Interest revenue
|
158
|
|
|
150
|
|
|
472
|
|
|
426
|
|
||||
Brokerage interest expense
|
(2
|
)
|
|
(1
|
)
|
|
(5
|
)
|
|
(5
|
)
|
||||
Net interest revenue
|
156
|
|
|
149
|
|
|
467
|
|
|
421
|
|
||||
Insured deposit account fees
|
209
|
|
|
202
|
|
|
620
|
|
|
612
|
|
||||
Investment product fees
|
85
|
|
|
79
|
|
|
253
|
|
|
226
|
|
||||
Total asset-based revenues
|
450
|
|
|
430
|
|
|
1,340
|
|
|
1,259
|
|
||||
Other revenues
|
16
|
|
|
16
|
|
|
39
|
|
|
49
|
|
||||
Net revenues
|
794
|
|
|
763
|
|
|
2,415
|
|
|
2,327
|
|
||||
Operating expenses:
|
|
|
|
|
|
|
|
||||||||
Employee compensation and benefits
|
202
|
|
|
189
|
|
|
608
|
|
|
565
|
|
||||
Clearing and execution costs
|
36
|
|
|
35
|
|
|
108
|
|
|
98
|
|
||||
Communications
|
31
|
|
|
29
|
|
|
92
|
|
|
84
|
|
||||
Occupancy and equipment costs
|
40
|
|
|
39
|
|
|
121
|
|
|
116
|
|
||||
Depreciation and amortization
|
23
|
|
|
24
|
|
|
69
|
|
|
71
|
|
||||
Amortization of acquired intangible assets
|
22
|
|
|
22
|
|
|
67
|
|
|
68
|
|
||||
Professional services
|
43
|
|
|
42
|
|
|
120
|
|
|
117
|
|
||||
Advertising
|
54
|
|
|
48
|
|
|
199
|
|
|
205
|
|
||||
Other
|
18
|
|
|
19
|
|
|
66
|
|
|
57
|
|
||||
Total operating expenses
|
469
|
|
|
447
|
|
|
1,450
|
|
|
1,381
|
|
||||
Operating income
|
325
|
|
|
316
|
|
|
965
|
|
|
946
|
|
||||
Other expense (income):
|
|
|
|
|
|
|
|
||||||||
Interest on borrowings
|
13
|
|
|
6
|
|
|
30
|
|
|
18
|
|
||||
Gain on sale of investments
|
(7
|
)
|
|
—
|
|
|
(7
|
)
|
|
—
|
|
||||
Other
|
—
|
|
|
—
|
|
|
1
|
|
|
—
|
|
||||
Total other expense (income)
|
6
|
|
|
6
|
|
|
24
|
|
|
18
|
|
||||
Pre-tax income
|
319
|
|
|
310
|
|
|
941
|
|
|
928
|
|
||||
Provision for income taxes
|
122
|
|
|
120
|
|
|
344
|
|
|
352
|
|
||||
Net income
|
$
|
197
|
|
|
$
|
190
|
|
|
$
|
597
|
|
|
$
|
576
|
|
Earnings per share - basic
|
$
|
0.36
|
|
|
$
|
0.34
|
|
|
$
|
1.10
|
|
|
$
|
1.05
|
|
Earnings per share - diluted
|
$
|
0.36
|
|
|
$
|
0.34
|
|
|
$
|
1.09
|
|
|
$
|
1.04
|
|
Weighted average shares outstanding - basic
|
544
|
|
|
551
|
|
|
544
|
|
|
551
|
|
||||
Weighted average shares outstanding - diluted
|
547
|
|
|
555
|
|
|
547
|
|
|
555
|
|
||||
Dividends declared per share
|
$
|
0.15
|
|
|
$
|
0.12
|
|
|
$
|
0.45
|
|
|
$
|
0.86
|
|
|
Three Months Ended
June 30, |
|
Nine Months Ended
June 30, |
||||||||||||
|
2015
|
|
2014
|
|
2015
|
|
2014
|
||||||||
|
(In millions)
|
||||||||||||||
Net income
|
$
|
197
|
|
|
$
|
190
|
|
|
$
|
597
|
|
|
$
|
576
|
|
Other comprehensive income (loss), before tax:
|
|
|
|
|
|
|
|
||||||||
Cash flow hedging instruments:
|
|
|
|
|
|
|
|
||||||||
Net unrealized loss
|
—
|
|
|
(15
|
)
|
|
(15
|
)
|
|
(24
|
)
|
||||
Reclassification adjustment for portion of realized loss amortized to net income
|
1
|
|
|
—
|
|
|
3
|
|
|
—
|
|
||||
Total other comprehensive income (loss), before tax
|
1
|
|
|
(15
|
)
|
|
(12
|
)
|
|
(24
|
)
|
||||
Income tax effect
|
(1
|
)
|
|
6
|
|
|
4
|
|
|
9
|
|
||||
Total other comprehensive income (loss), net of tax
|
—
|
|
|
(9
|
)
|
|
(8
|
)
|
|
(15
|
)
|
||||
Comprehensive income
|
$
|
197
|
|
|
$
|
181
|
|
|
$
|
589
|
|
|
$
|
561
|
|
|
Nine Months Ended June 30,
|
||||||
|
2015
|
|
2014
|
||||
|
(In millions)
|
||||||
Cash flows from operating activities:
|
|
|
|
||||
Net income
|
$
|
597
|
|
|
$
|
576
|
|
Adjustments to reconcile net income to net cash provided by operating activities:
|
|
|
|
||||
Depreciation and amortization
|
69
|
|
|
71
|
|
||
Amortization of acquired intangible assets
|
67
|
|
|
68
|
|
||
Deferred income taxes
|
(11
|
)
|
|
(5
|
)
|
||
Gain on sale of investments
|
(7
|
)
|
|
—
|
|
||
Stock-based compensation
|
27
|
|
|
24
|
|
||
Excess tax benefits on stock-based compensation
|
(14
|
)
|
|
(9
|
)
|
||
Other, net
|
2
|
|
|
—
|
|
||
Changes in operating assets and liabilities:
|
|
|
|
||||
Cash and investments segregated and on deposit for regulatory purposes
|
691
|
|
|
636
|
|
||
Receivable from brokers, dealers and clearing organizations
|
(36
|
)
|
|
33
|
|
||
Receivable from clients, net
|
(1,229
|
)
|
|
(2,247
|
)
|
||
Receivable from/payable to affiliates, net
|
(7
|
)
|
|
2
|
|
||
Other receivables, net
|
6
|
|
|
9
|
|
||
Securities owned, at fair value
|
(79
|
)
|
|
(48
|
)
|
||
Other assets
|
34
|
|
|
(40
|
)
|
||
Payable to brokers, dealers and clearing organizations
|
(7
|
)
|
|
564
|
|
||
Payable to clients
|
573
|
|
|
1,082
|
|
||
Accounts payable and other liabilities
|
(33
|
)
|
|
(64
|
)
|
||
Net cash provided by operating activities
|
643
|
|
|
652
|
|
||
Cash flows from investing activities:
|
|
|
|
||||
Purchase of property and equipment
|
(58
|
)
|
|
(54
|
)
|
||
Purchase of short-term investments
|
(503
|
)
|
|
(1
|
)
|
||
Proceeds from sale and maturity of short-term investments
|
501
|
|
|
1
|
|
||
Proceeds from sale of investments
|
10
|
|
|
13
|
|
||
Other
|
3
|
|
|
1
|
|
||
Net cash used in investing activities
|
(47
|
)
|
|
(40
|
)
|
|
Nine Months Ended June 30,
|
||||||
|
2015
|
|
2014
|
||||
|
(In millions)
|
||||||
Cash flows from financing activities:
|
|
|
|
||||
Proceeds from issuance of long-term debt
|
$
|
1,248
|
|
|
$
|
—
|
|
Payment of debt issuance costs
|
(11
|
)
|
|
—
|
|
||
Principal payments on long-term debt
|
(544
|
)
|
|
—
|
|
||
Proceeds from notes payable
|
—
|
|
|
230
|
|
||
Principal payments on notes payable
|
(150
|
)
|
|
(80
|
)
|
||
Payment of cash dividends
|
(244
|
)
|
|
(474
|
)
|
||
Proceeds from exercise of stock options: Nine months ended
June 30, 2015 - 0.7 million shares; 2014 - 0.4 million shares
|
12
|
|
|
7
|
|
||
Purchase of treasury stock: Nine months ended
June 30, 2015 - 4.5 million shares; 2014 - 3.5 million shares
|
(148
|
)
|
|
(106
|
)
|
||
Excess tax benefits on stock-based compensation
|
14
|
|
|
9
|
|
||
Net cash provided by (used in) financing activities
|
177
|
|
|
(414
|
)
|
||
Net increase in cash and cash equivalents
|
773
|
|
|
198
|
|
||
Cash and cash equivalents at beginning of period
|
1,460
|
|
|
1,062
|
|
||
Cash and cash equivalents at end of period
|
$
|
2,233
|
|
|
$
|
1,260
|
|
Supplemental cash flow information:
|
|
|
|
||||
Interest paid
|
$
|
23
|
|
|
$
|
22
|
|
Income taxes paid
|
$
|
355
|
|
|
$
|
367
|
|
|
June 30,
2015 |
|
September 30,
2014 |
||||
Corporate
|
$
|
1,117
|
|
|
$
|
298
|
|
Broker-dealer subsidiaries
|
975
|
|
|
1,090
|
|
||
Futures commission merchant subsidiary
|
42
|
|
|
—
|
|
||
Trust company subsidiary
|
72
|
|
|
53
|
|
||
Investment advisory subsidiaries
|
27
|
|
|
19
|
|
||
Total
|
$
|
2,233
|
|
|
$
|
1,460
|
|
|
June 30,
2015 |
|
September 30,
2014 |
||||
U.S. government debt securities
|
$
|
2,305
|
|
|
$
|
3,070
|
|
Reverse repurchase agreements (collateralized by U.S. government debt securities)
|
1,236
|
|
|
1,193
|
|
||
Cash in demand deposit accounts
|
646
|
|
|
617
|
|
||
Cash on deposit with futures commission merchants
|
163
|
|
|
186
|
|
||
U.S. government debt securities on deposit with futures commission merchant
|
75
|
|
|
50
|
|
||
Total
|
$
|
4,425
|
|
|
$
|
5,116
|
|
June 30, 2015
|
Face
Value
|
|
Unamortized
Discount
|
|
Fair Value
Adjustment
(1)
|
|
Net Carrying
Value
|
||||||||
Long-term debt:
|
|
|
|
|
|
|
|
||||||||
Senior Notes:
|
|
|
|
|
|
|
|
||||||||
5.600% Notes due 2019
|
$
|
500
|
|
|
$
|
—
|
|
|
$
|
33
|
|
|
$
|
533
|
|
2.950% Notes due 2022
|
750
|
|
|
(2
|
)
|
|
—
|
|
|
748
|
|
||||
3.625% Notes due 2025
|
500
|
|
|
—
|
|
|
4
|
|
|
504
|
|
||||
Secured Loan:
|
|
|
|
|
|
|
|
||||||||
Variable-rate Note due 2019
|
25
|
|
|
—
|
|
|
—
|
|
|
25
|
|
||||
Total long-term debt
|
$
|
1,775
|
|
|
$
|
(2
|
)
|
|
$
|
37
|
|
|
$
|
1,810
|
|
September 30, 2014
|
Face
Value
|
|
Unamortized
Discount
|
|
Fair Value
Adjustment
(1)
|
|
Net Carrying
Value
|
||||||||
Notes payable:
|
|
|
|
|
|
|
|
||||||||
Parent Revolving Facility
|
$
|
150
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
150
|
|
Long-term debt:
|
|
|
|
|
|
|
|
||||||||
Senior Notes:
|
|
|
|
|
|
|
|
||||||||
4.150% Notes due 2014
|
500
|
|
|
—
|
|
|
2
|
|
|
502
|
|
||||
5.600% Notes due 2019
|
500
|
|
|
—
|
|
|
30
|
|
|
530
|
|
||||
Secured Loan:
|
|
|
|
|
|
|
|
||||||||
Variable-rate Note due 2019
|
69
|
|
|
—
|
|
|
—
|
|
|
69
|
|
||||
Subtotal – Long-term debt
|
1,069
|
|
|
—
|
|
|
32
|
|
|
1,101
|
|
||||
Total notes payable and long-term debt
|
$
|
1,219
|
|
|
$
|
—
|
|
|
$
|
32
|
|
|
$
|
1,251
|
|
|
(1)
|
Fair value adjustments relate to changes in the fair value of the debt while in a fair value hedging relationship. See "
Fair Value Hedging
" below.
|
|
Three Months Ended June 30,
|
|
Nine Months Ended June 30,
|
||||||||||||
|
2015
|
|
2014
|
|
2015
|
|
2014
|
||||||||
Gain (loss) on fair value of interest rate swaps
|
$
|
(24
|
)
|
|
$
|
1
|
|
|
$
|
5
|
|
|
$
|
(11
|
)
|
Gain (loss) on fair value of hedged fixed-rate debt
|
24
|
|
|
(1
|
)
|
|
(5
|
)
|
|
11
|
|
||||
Net gain (loss) recorded in interest on borrowings
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
Amount of Loss Recognized in Other Comprehensive Income (Loss)
(Effective Portion)
|
||||||||||||||
|
Three Months Ended June 30,
|
|
Nine Months Ended June 30,
|
||||||||||||
|
2015
|
|
2014
|
|
2015
|
|
2014
|
||||||||
Forward-starting interest rate swaps
|
$
|
—
|
|
|
$
|
(15
|
)
|
|
$
|
(15
|
)
|
|
$
|
(24
|
)
|
|
|
Balance Sheet Location
|
|
June 30,
2015 |
|
September 30,
2014 |
||||
Interest rate contracts:
|
|
|
|
|
|
|
||||
Pay-variable interest rate swaps designated as fair
value hedges
|
|
Other assets
|
|
$
|
37
|
|
|
$
|
32
|
|
Forward-starting interest rate swaps designated as
cash flow hedges
|
|
Accounts payable and other
liabilities
|
|
$
|
—
|
|
|
$
|
(29
|
)
|
TD Ameritrade, Inc.
|
||||||||||||||||
Date
|
|
Net
Capital
|
|
Required
Net Capital
(8% of Total
Risk Margin
or $250,000
Minimum Dollar
Requirement)
|
|
Net Capital
in Excess of
Required
Net Capital
|
|
Net Capital in
Excess of
Early Warning
Threshold
(110% or 120%
of Required
Net Capital)
|
||||||||
June 30, 2015
|
|
$
|
264
|
|
|
$
|
—
|
|
|
$
|
264
|
|
|
$
|
263
|
|
September 30, 2014
|
|
$
|
347
|
|
|
$
|
17
|
|
|
$
|
330
|
|
|
$
|
328
|
|
TD Ameritrade Futures & Forex LLC
|
|||||||||||||||
Date
|
|
Net
Capital
|
|
Required
Net Capital (8% of Total Risk Margin) |
|
Net Capital
in Excess of
Required
Net Capital
|
|
Net Capital in
Excess of
Early Warning
Threshold
(110% of
Required
Net Capital)
|
|||||||
June 30, 2015
|
|
$
|
57
|
|
|
$
|
11
|
|
|
46
|
|
|
$
|
45
|
|
September 30, 2014
|
|
N/A
|
|
|
N/A
|
|
|
N/A
|
|
|
N/A
|
|
|
June 30,
2015 |
|
September 30,
2014 |
||||
Client margin securities
|
$
|
17.9
|
|
|
$
|
16.2
|
|
Stock borrowings
|
0.8
|
|
|
1.0
|
|
||
Total collateral available
|
$
|
18.7
|
|
|
$
|
17.2
|
|
|
|
|
|
||||
Collateral loaned
|
$
|
2.4
|
|
|
$
|
2.4
|
|
Collateral repledged
|
2.7
|
|
|
2.5
|
|
||
Total collateral loaned or repledged
|
$
|
5.1
|
|
|
$
|
4.9
|
|
•
|
Level 1— Quoted prices (unadjusted) in active markets for identical assets or liabilities that the Company has the ability to access. This category includes active exchange-traded funds, money market mutual funds, mutual funds and equity securities.
|
•
|
Level 2— Inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. Such inputs include quoted prices in markets that are not active, quoted prices for similar assets and liabilities in active and inactive markets, inputs other than quoted prices that are observable for the asset or liability and inputs that are derived principally from or corroborated by observable market data by correlation or other means. This category includes most debt securities and other interest-sensitive financial instruments.
|
•
|
Level 3 — Unobservable inputs for the asset or liability, where there is little, if any, observable market activity or data for the asset or liability.
|
|
As of June 30, 2015
|
||||||||||||||
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Fair Value
|
||||||||
Assets:
|
|
|
|
|
|
|
|
||||||||
Cash equivalents:
|
|
|
|
|
|
|
|
||||||||
Money market mutual funds
|
$
|
2,048
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
2,048
|
|
Investments segregated for regulatory purposes:
|
|
|
|
|
|
|
|
||||||||
U.S. government debt securities
|
—
|
|
|
2,380
|
|
|
—
|
|
|
2,380
|
|
||||
Securities owned:
|
|
|
|
|
|
|
|
||||||||
Money market and other mutual funds
|
—
|
|
|
—
|
|
|
2
|
|
|
2
|
|
||||
U.S. government debt securities
|
—
|
|
|
406
|
|
|
—
|
|
|
406
|
|
||||
Other
|
1
|
|
|
3
|
|
|
—
|
|
|
4
|
|
||||
Subtotal - Securities owned
|
1
|
|
|
409
|
|
|
2
|
|
|
412
|
|
||||
Other assets:
|
|
|
|
|
|
|
|
||||||||
Pay-variable interest rate swaps
(1)
|
—
|
|
|
37
|
|
|
—
|
|
|
37
|
|
||||
U.S. government debt securities
|
—
|
|
|
4
|
|
|
—
|
|
|
4
|
|
||||
Auction rate securities
|
—
|
|
|
—
|
|
|
1
|
|
|
1
|
|
||||
Subtotal - Other assets
|
—
|
|
|
41
|
|
|
1
|
|
|
42
|
|
||||
Total assets at fair value
|
$
|
2,049
|
|
|
$
|
2,830
|
|
|
$
|
3
|
|
|
$
|
4,882
|
|
Liabilities:
|
|
|
|
|
|
|
|
||||||||
Accounts payable and other liabilities:
|
|
|
|
|
|
|
|
||||||||
Securities sold, not yet purchased:
|
|
|
|
|
|
|
|
||||||||
Equity securities
|
$
|
13
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
13
|
|
|
(1)
|
See "
Fair Value Hedging
" in Note
5
for details.
|
|
As of September 30, 2014
|
||||||||||||||
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Fair Value
|
||||||||
Assets:
|
|
|
|
|
|
|
|
||||||||
Cash equivalents:
|
|
|
|
|
|
|
|
||||||||
Money market mutual funds
|
$
|
1,284
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1,284
|
|
Investments segregated for regulatory purposes:
|
|
|
|
|
|
|
|
||||||||
U.S. government debt securities
|
—
|
|
|
3,120
|
|
|
—
|
|
|
3,120
|
|
||||
Securities owned:
|
|
|
|
|
|
|
|
||||||||
Money market and other mutual funds
|
—
|
|
|
—
|
|
|
1
|
|
|
1
|
|
||||
U.S. government debt securities
|
—
|
|
|
326
|
|
|
—
|
|
|
326
|
|
||||
Other
|
2
|
|
|
3
|
|
|
—
|
|
|
5
|
|
||||
Subtotal - Securities owned
|
2
|
|
|
329
|
|
|
1
|
|
|
332
|
|
||||
Other assets:
|
|
|
|
|
|
|
|
||||||||
Pay-variable interest rate swaps
(1)
|
—
|
|
|
32
|
|
|
—
|
|
|
32
|
|
||||
U.S. government debt securities
|
—
|
|
|
4
|
|
|
—
|
|
|
4
|
|
||||
Auction rate securities
|
—
|
|
|
—
|
|
|
1
|
|
|
1
|
|
||||
Subtotal - Other assets
|
—
|
|
|
36
|
|
|
1
|
|
|
37
|
|
||||
Total assets at fair value
|
$
|
1,286
|
|
|
$
|
3,485
|
|
|
$
|
2
|
|
|
$
|
4,773
|
|
Liabilities:
|
|
|
|
|
|
|
|
||||||||
Accounts payable and other liabilities:
|
|
|
|
|
|
|
|
||||||||
Forward-starting interest rate swaps
(2)
|
$
|
—
|
|
|
$
|
29
|
|
|
$
|
—
|
|
|
$
|
29
|
|
Securities sold, not yet purchased:
|
|
|
|
|
|
|
|
||||||||
Equity securities
|
1
|
|
|
—
|
|
|
—
|
|
|
1
|
|
||||
Total liabilities at fair value
|
$
|
1
|
|
|
$
|
29
|
|
|
$
|
—
|
|
|
$
|
30
|
|
|
(1)
|
See "
Fair Value Hedging
" in Note
5
for details.
|
(2)
|
See "
Cash Flow Hedging
" in Note
5
for details.
|
|
June 30, 2015
|
||||||||||||||||||||||
|
|
|
|
|
|
|
Gross Amounts Not Offset in the
Condensed Consolidated
Balance Sheet
|
|
|
||||||||||||||
|
Gross Amounts
of Recognized
Assets and
Liabilities
|
|
Gross Amounts
Offset in the
Condensed
Consolidated
Balance Sheet
|
|
Net Amounts
Presented in
the Condensed
Consolidated
Balance Sheet
|
|
Financial
Instruments
(4)
|
|
Collateral
Received or
Pledged
(Including
Cash)
(5)
|
|
Net
Amount
(6)
|
||||||||||||
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Investments segregated for
regulatory purposes:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Reverse repurchase agreements
|
$
|
1,236
|
|
|
$
|
—
|
|
|
$
|
1,236
|
|
|
$
|
—
|
|
|
$
|
(1,236
|
)
|
|
$
|
—
|
|
Receivable from brokers, dealers
and clearing organizations:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Deposits paid for
securities borrowed
(1)
|
846
|
|
|
—
|
|
|
846
|
|
|
(54
|
)
|
|
(776
|
)
|
|
16
|
|
||||||
Other assets:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Pay-variable interest rate swaps
|
37
|
|
|
—
|
|
|
37
|
|
|
—
|
|
|
(37
|
)
|
|
—
|
|
||||||
Total
|
$
|
2,119
|
|
|
$
|
—
|
|
|
$
|
2,119
|
|
|
$
|
(54
|
)
|
|
$
|
(2,049
|
)
|
|
$
|
16
|
|
Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Payable to brokers, dealers
and clearing organizations:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Deposits received for
securities loaned
(2)(3)
|
$
|
2,363
|
|
|
$
|
—
|
|
|
$
|
2,363
|
|
|
$
|
(54
|
)
|
|
$
|
(2,065
|
)
|
|
$
|
244
|
|
|
September 30, 2014
|
||||||||||||||||||||||
|
|
|
|
|
|
|
Gross Amounts Not Offset in the
Condensed Consolidated
Balance Sheet
|
|
|
||||||||||||||
|
Gross Amounts
of Recognized
Assets and
Liabilities
|
|
Gross Amounts
Offset in the
Condensed
Consolidated
Balance Sheet
|
|
Net Amounts
Presented in
the Condensed
Consolidated
Balance Sheet
|
|
Financial
Instruments
(4)
|
|
Collateral
Received or
Pledged
(Including
Cash)
(5)
|
|
Net
Amount
(6)
|
||||||||||||
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Investments segregated for
regulatory purposes:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Reverse repurchase agreements
|
$
|
1,193
|
|
|
$
|
—
|
|
|
$
|
1,193
|
|
|
$
|
—
|
|
|
$
|
(1,193
|
)
|
|
$
|
—
|
|
Receivable from brokers, dealers
and clearing organizations: |
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Deposits paid for
securities borrowed
(1)
|
995
|
|
|
—
|
|
|
995
|
|
|
(69
|
)
|
|
(900
|
)
|
|
26
|
|
||||||
Other assets:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Pay-variable interest rate swaps
|
32
|
|
|
—
|
|
|
32
|
|
|
—
|
|
|
(32
|
)
|
|
—
|
|
||||||
Total
|
$
|
2,220
|
|
|
$
|
—
|
|
|
$
|
2,220
|
|
|
$
|
(69
|
)
|
|
$
|
(2,125
|
)
|
|
$
|
26
|
|
Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Payable to brokers, dealers
and clearing organizations:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Deposits received for
securities loaned
(2)
|
$
|
2,384
|
|
|
$
|
—
|
|
|
$
|
2,384
|
|
|
$
|
(69
|
)
|
|
$
|
(2,015
|
)
|
|
$
|
300
|
|
Accounts payable and other
liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Forward-starting interest
rate swaps
|
29
|
|
|
—
|
|
|
29
|
|
|
—
|
|
|
(29
|
)
|
|
—
|
|
||||||
Total
|
$
|
2,413
|
|
|
$
|
—
|
|
|
$
|
2,413
|
|
|
$
|
(69
|
)
|
|
$
|
(2,044
|
)
|
|
$
|
300
|
|
|
(1)
|
Included in the gross amounts of deposits paid for securities borrowed is
$499 million
and
$616 million
as of
June 30, 2015
and
September 30, 2014
, respectively, transacted through a risk-sharing program with the OCC, which guarantees the return of cash to the Company. See "General Contingencies" in Note 7 for a discussion of the potential risks associated with securities borrowing transactions and how the Company mitigates those risks.
|
(2)
|
Included in the gross amounts of deposits received for securities loaned is
$685 million
and
$754 million
as of
June 30, 2015
and
September 30, 2014
, respectively, transacted through a risk-sharing program with the OCC, which guarantees the return of securities to the Company. See "General Contingencies" in Note 7 for a discussion of the potential risks associated with securities lending transactions and how the Company mitigates those risks.
|
(3)
|
Substantially all of the Company's securities lending transactions have a continuous contractual term and, upon notice by either party, may be terminated within three business days. The following table summarizes the Company's gross liability for securities lending transactions by the class of securities loaned (dollars in millions):
|
(4)
|
Amounts represent recognized assets and liabilities that are subject to enforceable master agreements with rights of setoff.
|
(5)
|
Represents the fair value of collateral the Company had received or pledged under enforceable master agreements, limited for table presentation purposes to the net amount of the recognized assets due from or liabilities due to each counterparty. At
June 30, 2015
and
September 30, 2014
, the Company had received total collateral with a fair value of
$2,128 million
|
(6)
|
Represents the amount for which, in the case of net recognized assets, the Company had not received collateral, and in the case of net recognized liabilities, the Company had not pledged collateral.
|
|
Three Months Ended June 30,
|
||||||||||||||||||||||
|
2015
|
|
2014
|
||||||||||||||||||||
|
Before Tax
|
|
Tax Effect
|
|
Net of Tax
|
|
Before Tax
|
|
Tax Effect
|
|
Net of Tax
|
||||||||||||
Cash flow hedging instruments:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net unrealized loss
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(15
|
)
|
|
$
|
6
|
|
|
$
|
(9
|
)
|
Reclassification adjustment for portion of realized loss amortized to net income
(1)
|
1
|
|
|
(1
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Other comprehensive income (loss)
|
$
|
1
|
|
|
$
|
(1
|
)
|
|
$
|
—
|
|
|
$
|
(15
|
)
|
|
$
|
6
|
|
|
$
|
(9
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Nine Months Ended June 30,
|
||||||||||||||||||||||
|
2015
|
|
2014
|
||||||||||||||||||||
|
Before Tax
|
|
Tax Effect
|
|
Net of Tax
|
|
Before Tax
|
|
Tax Effect
|
|
Net of Tax
|
||||||||||||
Cash flow hedging instruments:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net unrealized loss
|
$
|
(15
|
)
|
|
$
|
5
|
|
|
$
|
(10
|
)
|
|
$
|
(24
|
)
|
|
$
|
9
|
|
|
$
|
(15
|
)
|
Reclassification adjustment for portion of realized loss amortized to net income
(1)
|
3
|
|
|
(1
|
)
|
|
2
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Other comprehensive loss
|
$
|
(12
|
)
|
|
$
|
4
|
|
|
$
|
(8
|
)
|
|
$
|
(24
|
)
|
|
$
|
9
|
|
|
$
|
(15
|
)
|
|
|
Three Months Ended June 30,
|
|
Nine Months Ended June 30,
|
||||||||||||
|
2015
|
|
2014
|
|
2015
|
|
2014
|
||||||||
Cash flow hedging instruments:
|
|
|
|
|
|
|
|
||||||||
Beginning balance
|
$
|
(26
|
)
|
|
$
|
(6
|
)
|
|
$
|
(18
|
)
|
|
$
|
—
|
|
Other comprehensive loss before reclassification
|
—
|
|
|
(9
|
)
|
|
(10
|
)
|
|
(15
|
)
|
||||
Amount reclassified from accumulated other
comprehensive loss
|
—
|
|
|
—
|
|
|
2
|
|
|
—
|
|
||||
Current period change
|
—
|
|
|
(9
|
)
|
|
(8
|
)
|
|
(15
|
)
|
||||
Ending balance
|
$
|
(26
|
)
|
|
$
|
(15
|
)
|
|
$
|
(26
|
)
|
|
$
|
(15
|
)
|
|
|
|
|
Revenues from TD and Affiliates
|
||||||||||||||
|
|
Statement of Income
Classification
|
|
Three months ended
June 30, |
|
Nine months ended
June 30, |
||||||||||||
Description
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
||||||||||
Insured Deposit Account Agreement
|
|
Insured deposit account fees
|
|
$
|
209
|
|
|
$
|
202
|
|
|
$
|
620
|
|
|
$
|
612
|
|
Referral and Strategic Alliance Agreement
|
|
Various
|
|
3
|
|
|
3
|
|
|
9
|
|
|
9
|
|
||||
Other
|
|
Various
|
|
2
|
|
|
2
|
|
|
5
|
|
|
5
|
|
||||
Total revenues
|
|
|
|
$
|
214
|
|
|
$
|
207
|
|
|
$
|
634
|
|
|
$
|
626
|
|
|
|
|
|
Expenses to TD and Affiliates
|
||||||||||||||
|
|
Statement of Income
Classification
|
|
Three months ended
June 30, |
|
Nine months ended
June 30, |
||||||||||||
Description
|
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|||||||||
Canadian Call Center Services Agreement
|
|
Professional services
|
|
$
|
5
|
|
|
$
|
4
|
|
|
$
|
14
|
|
|
$
|
13
|
|
Other
|
|
Various
|
|
—
|
|
|
—
|
|
|
2
|
|
|
2
|
|
||||
Total expenses
|
|
|
|
$
|
5
|
|
|
$
|
4
|
|
|
$
|
16
|
|
|
$
|
15
|
|
|
June 30,
2015 |
|
September 30,
2014 |
||||
Assets:
|
|
|
|
||||
Receivable from brokers, dealers and clearing organizations
|
$
|
—
|
|
|
$
|
1
|
|
Receivable from affiliates
|
107
|
|
|
99
|
|
||
|
|
|
|
||||
Liabilities:
|
|
|
|
||||
Payable to brokers, dealers and clearing organizations
|
$
|
67
|
|
|
$
|
96
|
|
Payable to affiliates
|
6
|
|
|
5
|
|
|
Parent
|
|
Guarantor
Subsidiary
|
|
Non-Guarantor
Subsidiaries
|
|
Eliminations
|
|
Total
|
||||||||||
|
(In millions)
|
||||||||||||||||||
ASSETS
|
|
|
|
|
|
|
|
|
|
||||||||||
Cash and cash equivalents
|
$
|
956
|
|
|
$
|
2
|
|
|
$
|
1,275
|
|
|
$
|
—
|
|
|
$
|
2,233
|
|
Cash and investments segregated and on
deposit for regulatory purposes
|
—
|
|
|
—
|
|
|
4,425
|
|
|
—
|
|
|
4,425
|
|
|||||
Receivable from brokers, dealers and
clearing organizations
|
—
|
|
|
—
|
|
|
1,144
|
|
|
—
|
|
|
1,144
|
|
|||||
Receivable from clients, net
|
—
|
|
|
—
|
|
|
12,868
|
|
|
—
|
|
|
12,868
|
|
|||||
Investments in subsidiaries
|
5,808
|
|
|
5,694
|
|
|
—
|
|
|
(11,502
|
)
|
|
—
|
|
|||||
Receivable from affiliates
|
6
|
|
|
3
|
|
|
104
|
|
|
(6
|
)
|
|
107
|
|
|||||
Goodwill
|
—
|
|
|
—
|
|
|
2,467
|
|
|
—
|
|
|
2,467
|
|
|||||
Acquired intangible assets, net
|
—
|
|
|
146
|
|
|
538
|
|
|
—
|
|
|
684
|
|
|||||
Other, net
|
116
|
|
|
15
|
|
|
1,157
|
|
|
(57
|
)
|
|
1,231
|
|
|||||
Total assets
|
$
|
6,886
|
|
|
$
|
5,860
|
|
|
$
|
23,978
|
|
|
$
|
(11,565
|
)
|
|
$
|
25,159
|
|
LIABILITIES AND STOCKHOLDERS’ EQUITY
|
|
|
|
|
|
|
|
|
|||||||||||
Liabilities:
|
|
|
|
|
|
|
|
|
|
||||||||||
Payable to brokers, dealers and
clearing organizations
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
2,414
|
|
|
$
|
—
|
|
|
$
|
2,414
|
|
Payable to clients
|
—
|
|
|
—
|
|
|
15,070
|
|
|
—
|
|
|
15,070
|
|
|||||
Accounts payable and other liabilities
|
83
|
|
|
—
|
|
|
498
|
|
|
(13
|
)
|
|
568
|
|
|||||
Payable to affiliates
|
—
|
|
|
—
|
|
|
12
|
|
|
(6
|
)
|
|
6
|
|
|||||
Long-term debt
|
1,810
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,810
|
|
|||||
Deferred income taxes
|
—
|
|
|
52
|
|
|
290
|
|
|
(44
|
)
|
|
298
|
|
|||||
Total liabilities
|
1,893
|
|
|
52
|
|
|
18,284
|
|
|
(63
|
)
|
|
20,166
|
|
|||||
Stockholders’ equity
|
4,993
|
|
|
5,808
|
|
|
5,694
|
|
|
(11,502
|
)
|
|
4,993
|
|
|||||
Total liabilities and stockholders’ equity
|
$
|
6,886
|
|
|
$
|
5,860
|
|
|
$
|
23,978
|
|
|
$
|
(11,565
|
)
|
|
$
|
25,159
|
|
|
Parent
|
|
Guarantor
Subsidiary
|
|
Non-Guarantor
Subsidiaries
|
|
Eliminations
|
|
Total
|
||||||||||
|
(In millions)
|
||||||||||||||||||
ASSETS
|
|
|
|
|
|
|
|
|
|
||||||||||
Cash and cash equivalents
|
$
|
117
|
|
|
$
|
2
|
|
|
$
|
1,341
|
|
|
$
|
—
|
|
|
$
|
1,460
|
|
Cash and investments segregated and on
deposit for regulatory purposes
|
—
|
|
|
—
|
|
|
5,116
|
|
|
—
|
|
|
5,116
|
|
|||||
Receivable from brokers, dealers and
clearing organizations
|
—
|
|
|
—
|
|
|
1,108
|
|
|
—
|
|
|
1,108
|
|
|||||
Receivable from clients, net
|
—
|
|
|
—
|
|
|
11,639
|
|
|
—
|
|
|
11,639
|
|
|||||
Investments in subsidiaries
|
5,868
|
|
|
5,754
|
|
|
—
|
|
|
(11,622
|
)
|
|
—
|
|
|||||
Receivable from affiliates
|
11
|
|
|
2
|
|
|
97
|
|
|
(11
|
)
|
|
99
|
|
|||||
Goodwill
|
—
|
|
|
—
|
|
|
2,467
|
|
|
—
|
|
|
2,467
|
|
|||||
Acquired intangible assets, net
|
—
|
|
|
146
|
|
|
605
|
|
|
—
|
|
|
751
|
|
|||||
Other, net
|
156
|
|
|
16
|
|
|
1,073
|
|
|
(54
|
)
|
|
1,191
|
|
|||||
Total assets
|
$
|
6,152
|
|
|
$
|
5,920
|
|
|
$
|
23,446
|
|
|
$
|
(11,687
|
)
|
|
$
|
23,831
|
|
LIABILITIES AND STOCKHOLDERS’ EQUITY
|
|
|
|
|
|
|
|
|
|||||||||||
Liabilities:
|
|
|
|
|
|
|
|
|
|
||||||||||
Payable to brokers, dealers and
clearing organizations
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
2,421
|
|
|
$
|
—
|
|
|
$
|
2,421
|
|
Payable to clients
|
—
|
|
|
—
|
|
|
14,497
|
|
|
—
|
|
|
14,497
|
|
|||||
Accounts payable and other liabilities
|
153
|
|
|
—
|
|
|
455
|
|
|
(13
|
)
|
|
595
|
|
|||||
Payable to affiliates
|
—
|
|
|
—
|
|
|
16
|
|
|
(11
|
)
|
|
5
|
|
|||||
Notes payable
|
150
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
150
|
|
|||||
Long-term debt
|
1,101
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,101
|
|
|||||
Deferred income taxes
|
—
|
|
|
52
|
|
|
303
|
|
|
(41
|
)
|
|
314
|
|
|||||
Total liabilities
|
1,404
|
|
|
52
|
|
|
17,692
|
|
|
(65
|
)
|
|
19,083
|
|
|||||
Stockholders’ equity
|
4,748
|
|
|
5,868
|
|
|
5,754
|
|
|
(11,622
|
)
|
|
4,748
|
|
|||||
Total liabilities and stockholders’ equity
|
$
|
6,152
|
|
|
$
|
5,920
|
|
|
$
|
23,446
|
|
|
$
|
(11,687
|
)
|
|
$
|
23,831
|
|
|
Parent
|
|
Guarantor
Subsidiary
|
|
Non-Guarantor
Subsidiaries
|
|
Eliminations
|
|
Total
|
||||||||||
|
(In millions)
|
||||||||||||||||||
Net revenues
|
$
|
5
|
|
|
$
|
—
|
|
|
$
|
794
|
|
|
$
|
(5
|
)
|
|
$
|
794
|
|
Operating expenses
|
4
|
|
|
—
|
|
|
470
|
|
|
(5
|
)
|
|
469
|
|
|||||
Operating income
|
1
|
|
|
—
|
|
|
324
|
|
|
—
|
|
|
325
|
|
|||||
Other expense (income)
|
13
|
|
|
—
|
|
|
(7
|
)
|
|
—
|
|
|
6
|
|
|||||
Income (loss) before income taxes and equity
in income of subsidiaries
|
(12
|
)
|
|
—
|
|
|
331
|
|
|
—
|
|
|
319
|
|
|||||
Provision for (benefit from) income taxes
|
(5
|
)
|
|
—
|
|
|
127
|
|
|
—
|
|
|
122
|
|
|||||
Income (loss) before equity in income of
subsidiaries
|
(7
|
)
|
|
—
|
|
|
204
|
|
|
—
|
|
|
197
|
|
|||||
Equity in income of subsidiaries
|
204
|
|
|
204
|
|
|
—
|
|
|
(408
|
)
|
|
—
|
|
|||||
Net income
|
$
|
197
|
|
|
$
|
204
|
|
|
$
|
204
|
|
|
$
|
(408
|
)
|
|
$
|
197
|
|
|
Parent
|
|
Guarantor
Subsidiary
|
|
Non-Guarantor
Subsidiaries
|
|
Eliminations
|
|
Total
|
||||||||||
|
(In millions)
|
||||||||||||||||||
Net revenues
|
$
|
4
|
|
|
$
|
—
|
|
|
$
|
764
|
|
|
$
|
(5
|
)
|
|
$
|
763
|
|
Operating expenses
|
4
|
|
|
—
|
|
|
448
|
|
|
(5
|
)
|
|
447
|
|
|||||
Operating income
|
—
|
|
|
—
|
|
|
316
|
|
|
—
|
|
|
316
|
|
|||||
Other expense
|
6
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
6
|
|
|||||
Income (loss) before income taxes and equity
in income of subsidiaries
|
(6
|
)
|
|
—
|
|
|
316
|
|
|
—
|
|
|
310
|
|
|||||
Provision for (benefit from) income taxes
|
(2
|
)
|
|
—
|
|
|
122
|
|
|
—
|
|
|
120
|
|
|||||
Income (loss) before equity in income of
subsidiaries
|
(4
|
)
|
|
—
|
|
|
194
|
|
|
—
|
|
|
190
|
|
|||||
Equity in income of subsidiaries
|
194
|
|
|
194
|
|
|
—
|
|
|
(388
|
)
|
|
—
|
|
|||||
Net income
|
$
|
190
|
|
|
$
|
194
|
|
|
$
|
194
|
|
|
$
|
(388
|
)
|
|
$
|
190
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Parent
|
|
Guarantor
Subsidiary
|
|
Non-Guarantor
Subsidiaries
|
|
Eliminations
|
|
Total
|
||||||||||
|
(In millions)
|
||||||||||||||||||
Net revenues
|
$
|
13
|
|
|
$
|
—
|
|
|
$
|
2,415
|
|
|
$
|
(13
|
)
|
|
$
|
2,415
|
|
Operating expenses
|
11
|
|
|
—
|
|
|
1,452
|
|
|
(13
|
)
|
|
1,450
|
|
|||||
Operating income
|
2
|
|
|
—
|
|
|
963
|
|
|
—
|
|
|
965
|
|
|||||
Other expense (income)
|
31
|
|
|
—
|
|
|
(7
|
)
|
|
—
|
|
|
24
|
|
|||||
Income (loss) before income taxes and equity
in income of subsidiaries
|
(29
|
)
|
|
—
|
|
|
970
|
|
|
—
|
|
|
941
|
|
|||||
Provision for (benefit from) income taxes
|
(11
|
)
|
|
—
|
|
|
355
|
|
|
—
|
|
|
344
|
|
|||||
Income (loss) before equity in income of
subsidiaries
|
(18
|
)
|
|
—
|
|
|
615
|
|
|
—
|
|
|
597
|
|
|||||
Equity in income of subsidiaries
|
615
|
|
|
615
|
|
|
—
|
|
|
(1,230
|
)
|
|
—
|
|
|||||
Net income
|
$
|
597
|
|
|
$
|
615
|
|
|
$
|
615
|
|
|
$
|
(1,230
|
)
|
|
$
|
597
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Parent
|
|
Guarantor
Subsidiary
|
|
Non-Guarantor
Subsidiaries
|
|
Eliminations
|
|
Total
|
||||||||||
|
(In millions)
|
||||||||||||||||||
Net revenues
|
$
|
10
|
|
|
$
|
—
|
|
|
$
|
2,328
|
|
|
$
|
(11
|
)
|
|
$
|
2,327
|
|
Operating expenses
|
9
|
|
|
—
|
|
|
1,383
|
|
|
(11
|
)
|
|
1,381
|
|
|||||
Operating income
|
1
|
|
|
—
|
|
|
945
|
|
|
—
|
|
|
946
|
|
|||||
Other expense
|
18
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
18
|
|
|||||
Income (loss) before income taxes and equity
in income of subsidiaries
|
(17
|
)
|
|
—
|
|
|
945
|
|
|
—
|
|
|
928
|
|
|||||
Provision for (benefit from) income taxes
|
(13
|
)
|
|
1
|
|
|
364
|
|
|
—
|
|
|
352
|
|
|||||
Income (loss) before equity in income of
subsidiaries
|
(4
|
)
|
|
(1
|
)
|
|
581
|
|
|
—
|
|
|
576
|
|
|||||
Equity in income of subsidiaries
|
580
|
|
|
573
|
|
|
17
|
|
|
(1,170
|
)
|
|
—
|
|
|||||
Net income
|
$
|
576
|
|
|
$
|
572
|
|
|
$
|
598
|
|
|
$
|
(1,170
|
)
|
|
$
|
576
|
|
|
Parent
|
|
Guarantor
Subsidiary |
|
Non-Guarantor
Subsidiaries |
|
Total
|
||||||||
|
(In millions)
|
||||||||||||||
Net cash provided by (used in) operating activities
|
$
|
(12
|
)
|
|
$
|
—
|
|
|
$
|
655
|
|
|
$
|
643
|
|
Cash flows from investing activities:
|
|
|
|
|
|
|
|
||||||||
Purchase of property and equipment
|
—
|
|
|
—
|
|
|
(58
|
)
|
|
(58
|
)
|
||||
Proceeds from sale and maturity of short-term investments
|
500
|
|
|
—
|
|
|
1
|
|
|
501
|
|
||||
Purchase of short-term investments
|
(502
|
)
|
|
—
|
|
|
(1
|
)
|
|
(503
|
)
|
||||
Proceeds from sale of investments
|
1
|
|
|
—
|
|
|
9
|
|
|
10
|
|
||||
Other
|
—
|
|
|
—
|
|
|
3
|
|
|
3
|
|
||||
Net cash used in investing activities
|
(1
|
)
|
|
—
|
|
|
(46
|
)
|
|
(47
|
)
|
||||
Cash flows from financing activities:
|
|
|
|
|
|
|
|
||||||||
Proceeds from issuance of long-term debt
|
1,248
|
|
|
—
|
|
|
—
|
|
|
1,248
|
|
||||
Payment of debt issuance costs
|
(11
|
)
|
|
—
|
|
|
—
|
|
|
(11
|
)
|
||||
Principal payments on long-term debt
|
(544
|
)
|
|
—
|
|
|
—
|
|
|
(544
|
)
|
||||
Principal payments on notes payable
|
(150
|
)
|
|
—
|
|
|
—
|
|
|
(150
|
)
|
||||
Payment of cash dividends
|
(244
|
)
|
|
—
|
|
|
—
|
|
|
(244
|
)
|
||||
Purchase of treasury stock
|
(148
|
)
|
|
—
|
|
|
—
|
|
|
(148
|
)
|
||||
Other
|
26
|
|
|
—
|
|
|
—
|
|
|
26
|
|
||||
Net cash provided by financing activities
|
177
|
|
|
—
|
|
|
—
|
|
|
177
|
|
||||
Intercompany investing and financing activities, net
|
675
|
|
|
—
|
|
|
(675
|
)
|
|
—
|
|
||||
Net increase (decrease) in cash and cash equivalents
|
839
|
|
|
—
|
|
|
(66
|
)
|
|
773
|
|
||||
Cash and cash equivalents at beginning of period
|
117
|
|
|
2
|
|
|
1,341
|
|
|
1,460
|
|
||||
Cash and cash equivalents at end of period
|
$
|
956
|
|
|
$
|
2
|
|
|
$
|
1,275
|
|
|
$
|
2,233
|
|
|
Parent
|
|
Guarantor
Subsidiary
|
|
Non-Guarantor
Subsidiaries
|
|
Total
|
||||||||
|
(In millions)
|
||||||||||||||
Net cash provided by (used in) operating activities
|
$
|
(80
|
)
|
|
$
|
1
|
|
|
$
|
731
|
|
|
$
|
652
|
|
Cash flows from investing activities:
|
|
|
|
|
|
|
|
||||||||
Purchase of property and equipment
|
—
|
|
|
—
|
|
|
(54
|
)
|
|
(54
|
)
|
||||
Proceeds from sale and maturity of short-term investments
|
—
|
|
|
—
|
|
|
1
|
|
|
1
|
|
||||
Proceeds from sale of investments
|
13
|
|
|
—
|
|
|
—
|
|
|
13
|
|
||||
Net cash provided by (used in) investing activities
|
13
|
|
|
—
|
|
|
(53
|
)
|
|
(40
|
)
|
||||
Cash flows from financing activities:
|
|
|
|
|
|
|
|
||||||||
Proceeds from notes payable
|
230
|
|
|
—
|
|
|
—
|
|
|
230
|
|
||||
Principal payments on notes payable
|
(80
|
)
|
|
—
|
|
|
—
|
|
|
(80
|
)
|
||||
Payment of cash dividends
|
(474
|
)
|
|
—
|
|
|
—
|
|
|
(474
|
)
|
||||
Purchase of treasury stock
|
(106
|
)
|
|
—
|
|
|
—
|
|
|
(106
|
)
|
||||
Other
|
16
|
|
|
—
|
|
|
—
|
|
|
16
|
|
||||
Net cash used in financing activities
|
(414
|
)
|
|
—
|
|
|
—
|
|
|
(414
|
)
|
||||
Intercompany investing and financing activities, net
|
455
|
|
|
(5
|
)
|
|
(450
|
)
|
|
—
|
|
||||
Net increase (decrease) in cash and cash equivalents
|
(26
|
)
|
|
(4
|
)
|
|
228
|
|
|
198
|
|
||||
Cash and cash equivalents at beginning of period
|
199
|
|
|
7
|
|
|
856
|
|
|
1,062
|
|
||||
Cash and cash equivalents at end of period
|
$
|
173
|
|
|
$
|
3
|
|
|
$
|
1,084
|
|
|
$
|
1,260
|
|
|
Three months ended June 30,
|
|
Nine months ended June 30,
|
||||||||||||||||||||||||
|
2015
|
|
2014
|
|
2015
|
|
2014
|
||||||||||||||||||||
|
$
|
|
% of Net Revenues
|
|
$
|
|
% of Net Revenues
|
|
$
|
|
% of Net Revenues
|
|
$
|
|
% of Net Revenues
|
||||||||||||
EBITDA
|
$
|
377
|
|
|
47.5
|
%
|
|
$
|
362
|
|
|
47.4
|
%
|
|
$
|
1,107
|
|
|
45.8
|
%
|
|
$
|
1,085
|
|
|
46.6
|
%
|
Less:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Depreciation and amortization
|
(23
|
)
|
|
(2.9
|
)%
|
|
(24
|
)
|
|
(3.1
|
)%
|
|
(69
|
)
|
|
(2.9
|
)%
|
|
(71
|
)
|
|
(3.1
|
)%
|
||||
Amortization of acquired intangible assets
|
(22
|
)
|
|
(2.8
|
)%
|
|
(22
|
)
|
|
(2.9
|
)%
|
|
(67
|
)
|
|
(2.8
|
)%
|
|
(68
|
)
|
|
(2.9
|
)%
|
||||
Interest on borrowings
|
(13
|
)
|
|
(1.6
|
)%
|
|
(6
|
)
|
|
(0.8
|
)%
|
|
(30
|
)
|
|
(1.2
|
)%
|
|
(18
|
)
|
|
(0.8
|
)%
|
||||
Provision for income taxes
|
(122
|
)
|
|
(15.4
|
)%
|
|
(120
|
)
|
|
(15.7
|
)%
|
|
(344
|
)
|
|
(14.2
|
)%
|
|
(352
|
)
|
|
(15.1
|
)%
|
||||
Net income
|
$
|
197
|
|
|
24.8
|
%
|
|
$
|
190
|
|
|
24.9
|
%
|
|
$
|
597
|
|
|
24.7
|
%
|
|
$
|
576
|
|
|
24.8
|
%
|
|
Three months ended
June 30, |
|
Increase/
(Decrease)
|
|
Nine months ended
June 30, |
|
Increase/
(Decrease)
|
||||||||||||||||
|
2015
|
|
2014
|
|
|
2015
|
|
2014
|
|
||||||||||||||
Average interest-earning assets
|
$
|
20,444
|
|
|
$
|
18,827
|
|
|
$
|
1,617
|
|
|
$
|
19,768
|
|
|
$
|
18,287
|
|
|
$
|
1,481
|
|
Average insured deposit account balances
|
74,844
|
|
|
72,430
|
|
|
2,414
|
|
|
74,911
|
|
|
72,713
|
|
|
2,198
|
|
||||||
Average spread-based balances
|
$
|
95,288
|
|
|
$
|
91,257
|
|
|
$
|
4,031
|
|
|
$
|
94,679
|
|
|
$
|
91,000
|
|
|
$
|
3,679
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net interest revenue
|
$
|
156
|
|
|
$
|
149
|
|
|
$
|
7
|
|
|
$
|
467
|
|
|
$
|
421
|
|
|
$
|
46
|
|
Insured deposit account fee revenue
|
209
|
|
|
202
|
|
|
7
|
|
|
620
|
|
|
612
|
|
|
8
|
|
||||||
Spread-based revenue
|
$
|
365
|
|
|
$
|
351
|
|
|
$
|
14
|
|
|
$
|
1,087
|
|
|
$
|
1,033
|
|
|
$
|
54
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Avg. annualized yield—interest-earning assets
|
3.02
|
%
|
|
3.13
|
%
|
|
(0.11
|
)%
|
|
3.11
|
%
|
|
3.04
|
%
|
|
0.07
|
%
|
||||||
Avg. annualized yield—insured deposit account fees
|
1.10
|
%
|
|
1.10
|
%
|
|
0.00
|
%
|
|
1.09
|
%
|
|
1.11
|
%
|
|
(0.02
|
)%
|
||||||
Net interest margin (NIM)
|
1.51
|
%
|
|
1.52
|
%
|
|
(0.01
|
)%
|
|
1.51
|
%
|
|
1.50
|
%
|
|
0.01
|
%
|
|
Interest Revenue (Expense)
|
|
Increase/
(Decrease)
|
|
Interest Revenue (Expense)
|
|
Increase/
(Decrease)
|
||||||||||||||||
|
Three months ended
June 30, |
|
|
Nine months ended
June 30, |
|
||||||||||||||||||
|
2015
|
|
2014
|
|
|
2015
|
|
2014
|
|
||||||||||||||
Segregated cash
|
$
|
1
|
|
|
$
|
2
|
|
|
$
|
(1
|
)
|
|
$
|
4
|
|
|
$
|
5
|
|
|
$
|
(1
|
)
|
Client margin balances
|
112
|
|
|
105
|
|
|
7
|
|
|
328
|
|
|
299
|
|
|
29
|
|
||||||
Securities lending/borrowing, net
|
43
|
|
|
42
|
|
|
1
|
|
|
135
|
|
|
117
|
|
|
18
|
|
||||||
Other cash and interest-earning investments
|
—
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
1
|
|
|
—
|
|
||||||
Client credit balances
|
—
|
|
|
—
|
|
|
—
|
|
|
(1
|
)
|
|
(1
|
)
|
|
—
|
|
||||||
Net interest revenue
|
$
|
156
|
|
|
$
|
149
|
|
|
$
|
7
|
|
|
$
|
467
|
|
|
$
|
421
|
|
|
$
|
46
|
|
|
Average Balance
|
|
%
Change |
|
Average Balance
|
|
%
Change
|
||||||||||||||
|
Three months ended
June 30, |
|
|
Nine months ended
June 30, |
|
||||||||||||||||
|
2015
|
|
2014
|
|
|
2015
|
|
2014
|
|
||||||||||||
Segregated cash
|
$
|
3,976
|
|
|
$
|
5,172
|
|
|
(23
|
)%
|
|
$
|
4,546
|
|
|
$
|
5,312
|
|
|
(14
|
)%
|
Client margin balances
|
12,498
|
|
|
10,980
|
|
|
14
|
%
|
|
11,944
|
|
|
10,258
|
|
|
16
|
%
|
||||
Securities borrowing
|
966
|
|
|
1,011
|
|
|
(4
|
)%
|
|
943
|
|
|
1,084
|
|
|
(13
|
)%
|
||||
Other cash and interest-earning investments
|
3,004
|
|
|
1,664
|
|
|
81
|
%
|
|
2,335
|
|
|
1,633
|
|
|
43
|
%
|
||||
Interest-earning assets
|
$
|
20,444
|
|
|
$
|
18,827
|
|
|
9
|
%
|
|
$
|
19,768
|
|
|
$
|
18,287
|
|
|
8
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Client credit balances
|
$
|
12,226
|
|
|
$
|
11,473
|
|
|
7
|
%
|
|
$
|
12,150
|
|
|
$
|
11,056
|
|
|
10
|
%
|
Securities lending
|
2,210
|
|
|
2,617
|
|
|
(16
|
)%
|
|
2,215
|
|
|
2,535
|
|
|
(13
|
)%
|
||||
Interest-bearing liabilities
|
$
|
14,436
|
|
|
$
|
14,090
|
|
|
2
|
%
|
|
$
|
14,365
|
|
|
$
|
13,591
|
|
|
6
|
%
|
|
Fee Revenue
|
|
Increase/
(Decrease)
|
|
Fee Revenue
|
|
Increase/
(Decrease)
|
||||||||||||||||
|
Three months ended
June 30, |
|
|
Nine months ended
June 30, |
|
||||||||||||||||||
|
2015
|
|
2014
|
|
|
2015
|
|
2014
|
|
||||||||||||||
Money market mutual fund
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Market fee-based investment balances
|
85
|
|
|
79
|
|
|
6
|
|
|
253
|
|
|
226
|
|
|
27
|
|
||||||
Total investment product fees
|
$
|
85
|
|
|
$
|
79
|
|
|
$
|
6
|
|
|
$
|
253
|
|
|
$
|
226
|
|
|
$
|
27
|
|
|
Average Balance
|
|
%
Change |
|
Average Balance
|
|
%
Change
|
||||||||||||||
|
Three months ended
June 30, |
|
|
Nine months ended
June 30, |
|
||||||||||||||||
|
2015
|
|
2014
|
|
|
2015
|
|
2014
|
|
||||||||||||
Money market mutual fund
|
$
|
5,573
|
|
|
$
|
5,212
|
|
|
7
|
%
|
|
$
|
5,599
|
|
|
$
|
5,254
|
|
|
7
|
%
|
Market fee-based investment balances
|
155,699
|
|
|
133,338
|
|
|
17
|
%
|
|
150,093
|
|
|
128,957
|
|
|
16
|
%
|
||||
Total fee-based investment balances
|
$
|
161,272
|
|
|
$
|
138,550
|
|
|
16
|
%
|
|
$
|
155,692
|
|
|
$
|
134,211
|
|
|
16
|
%
|
|
Average Annualized Yield
|
|
Increase/
(Decrease) |
|
Average Annualized Yield
|
|
Increase/
(Decrease)
|
||||||||||
|
Three months ended
June 30, |
|
|
Nine months ended
June 30, |
|
||||||||||||
|
2015
|
|
2014
|
|
|
2015
|
|
2014
|
|
||||||||
Money market mutual fund
|
0.00
|
%
|
|
0.00
|
%
|
|
0.00
|
%
|
|
0.00
|
%
|
|
0.00
|
%
|
|
0.00
|
%
|
Market fee-based investment balances
|
0.22
|
%
|
|
0.24
|
%
|
|
(0.02
|
)%
|
|
0.22
|
%
|
|
0.23
|
%
|
|
(0.01
|
)%
|
Total investment product fees
|
0.21
|
%
|
|
0.23
|
%
|
|
(0.02
|
)%
|
|
0.21
|
%
|
|
0.22
|
%
|
|
(0.01
|
)%
|
|
Three months ended
June 30, |
|
%
Change |
|
Nine months ended
June 30, |
|
%
Change
|
||||||||||||||
|
2015
|
|
2014
|
|
|
2015
|
|
2014
|
|
||||||||||||
Total trades (in millions)
|
27.33
|
|
|
25.29
|
|
|
8
|
%
|
|
85.21
|
|
|
81.37
|
|
|
5
|
%
|
||||
Average client trades per day
|
433,759
|
|
|
401,468
|
|
|
8
|
%
|
|
455,642
|
|
|
435,123
|
|
|
5
|
%
|
||||
Average client trades per funded account (annualized)
|
16.7
|
|
|
16.2
|
|
|
3
|
%
|
|
17.8
|
|
|
17.9
|
|
|
(1
|
)%
|
||||
Activity rate—funded accounts
|
6.7
|
%
|
|
6.5
|
%
|
|
3
|
%
|
|
7.1
|
%
|
|
7.1
|
%
|
|
0
|
%
|
||||
Trading days
|
63.0
|
|
|
63.0
|
|
|
0
|
%
|
|
187.0
|
|
|
187.0
|
|
|
0
|
%
|
||||
Average commissions and transaction fees per trade
(1)
|
$
|
11.99
|
|
|
$
|
12.52
|
|
|
(4
|
)%
|
|
$
|
12.16
|
|
|
$
|
12.51
|
|
|
(3
|
)%
|
Order routing revenue (in millions)
|
$
|
71
|
|
|
$
|
72
|
|
|
(1
|
)%
|
|
$
|
223
|
|
|
$
|
226
|
|
|
(1
|
)%
|
Average order routing revenue per trade
(2)
|
$
|
2.59
|
|
|
$
|
2.85
|
|
|
(9
|
)%
|
|
$
|
2.62
|
|
|
$
|
2.78
|
|
|
(6
|
)%
|
|
(1)
|
Average commissions and transaction fees per trade excludes the TD Waterhouse UK business.
|
(2)
|
Average order routing revenue per trade is included in average commissions and transaction fees per trade.
|
|
Three months ended
June 30, |
|
%
Change |
|
Nine months ended
June 30, |
|
%
Change
|
||||||||||||||
|
2015
|
|
2014
|
|
|
2015
|
|
2014
|
|
||||||||||||
Funded accounts (beginning of period)
|
6,467,000
|
|
|
6,146,000
|
|
|
5
|
%
|
|
6,301,000
|
|
|
5,993,000
|
|
|
5
|
%
|
||||
Funded accounts (end of period)
|
6,551,000
|
|
|
6,237,000
|
|
|
5
|
%
|
|
6,551,000
|
|
|
6,237,000
|
|
|
5
|
%
|
||||
Percentage change during period
|
1
|
%
|
|
1
|
%
|
|
|
|
4
|
%
|
|
4
|
%
|
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Client assets (beginning of period, in billions)
|
$
|
695.3
|
|
|
$
|
617.1
|
|
|
13
|
%
|
|
$
|
653.1
|
|
|
$
|
555.9
|
|
|
17
|
%
|
Client assets (end of period, in billions)
|
$
|
702.3
|
|
|
$
|
650.2
|
|
|
8
|
%
|
|
$
|
702.3
|
|
|
$
|
650.2
|
|
|
8
|
%
|
Percentage change during period
|
1
|
%
|
|
5
|
%
|
|
|
|
8
|
%
|
|
17
|
%
|
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net new assets (in billions)
|
$
|
11.7
|
|
|
$
|
13.4
|
|
|
(13
|
)%
|
|
$
|
46.8
|
|
|
$
|
40.0
|
|
|
17
|
%
|
Net new assets annualized growth rate
|
7
|
%
|
|
9
|
%
|
|
|
|
10
|
%
|
|
10
|
%
|
|
|
|
Three months ended June 30,
|
|
%
Change |
|
Nine months ended June 30,
|
|
%
Change
|
||||||||||||||
|
2015
|
|
2014
|
|
|
2015
|
|
2014
|
|
||||||||||||
Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Transaction-based revenues:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Commissions and transaction fees
|
$
|
328
|
|
|
$
|
317
|
|
|
3
|
%
|
|
$
|
1,036
|
|
|
$
|
1,019
|
|
|
2
|
%
|
Asset-based revenues:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest revenue
|
158
|
|
|
150
|
|
|
5
|
%
|
|
472
|
|
|
426
|
|
|
11
|
%
|
||||
Brokerage interest expense
|
(2
|
)
|
|
(1
|
)
|
|
100
|
%
|
|
(5
|
)
|
|
(5
|
)
|
|
0
|
%
|
||||
Net interest revenue
|
156
|
|
|
149
|
|
|
5
|
%
|
|
467
|
|
|
421
|
|
|
11
|
%
|
||||
Insured deposit account fees
|
209
|
|
|
202
|
|
|
3
|
%
|
|
620
|
|
|
612
|
|
|
1
|
%
|
||||
Investment product fees
|
85
|
|
|
79
|
|
|
8
|
%
|
|
253
|
|
|
226
|
|
|
12
|
%
|
||||
Total asset-based revenues
|
450
|
|
|
430
|
|
|
5
|
%
|
|
1,340
|
|
|
1,259
|
|
|
6
|
%
|
||||
Other revenues
|
16
|
|
|
16
|
|
|
0
|
%
|
|
39
|
|
|
49
|
|
|
(20
|
)%
|
||||
Net revenues
|
794
|
|
|
763
|
|
|
4
|
%
|
|
2,415
|
|
|
2,327
|
|
|
4
|
%
|
||||
Operating expenses:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Employee compensation and benefits
|
202
|
|
|
189
|
|
|
7
|
%
|
|
608
|
|
|
565
|
|
|
8
|
%
|
||||
Clearing and execution costs
|
36
|
|
|
35
|
|
|
3
|
%
|
|
108
|
|
|
98
|
|
|
10
|
%
|
||||
Communications
|
31
|
|
|
29
|
|
|
7
|
%
|
|
92
|
|
|
84
|
|
|
10
|
%
|
||||
Occupancy and equipment costs
|
40
|
|
|
39
|
|
|
3
|
%
|
|
121
|
|
|
116
|
|
|
4
|
%
|
||||
Depreciation and amortization
|
23
|
|
|
24
|
|
|
(4
|
)%
|
|
69
|
|
|
71
|
|
|
(3
|
)%
|
||||
Amortization of acquired intangible assets
|
22
|
|
|
22
|
|
|
0
|
%
|
|
67
|
|
|
68
|
|
|
(1
|
)%
|
||||
Professional services
|
43
|
|
|
42
|
|
|
2
|
%
|
|
120
|
|
|
117
|
|
|
3
|
%
|
||||
Advertising
|
54
|
|
|
48
|
|
|
13
|
%
|
|
199
|
|
|
205
|
|
|
(3
|
)%
|
||||
Other
|
18
|
|
|
19
|
|
|
(5
|
)%
|
|
66
|
|
|
57
|
|
|
16
|
%
|
||||
Total operating expenses
|
469
|
|
|
447
|
|
|
5
|
%
|
|
1,450
|
|
|
1,381
|
|
|
5
|
%
|
||||
Operating income
|
325
|
|
|
316
|
|
|
3
|
%
|
|
965
|
|
|
946
|
|
|
2
|
%
|
||||
Other expense (income):
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest on borrowings
|
13
|
|
|
6
|
|
|
117
|
%
|
|
30
|
|
|
18
|
|
|
67
|
%
|
||||
Gain on sale of investments
|
(7
|
)
|
|
—
|
|
|
N/A
|
|
|
(7
|
)
|
|
—
|
|
|
N/A
|
|
||||
Other
|
—
|
|
|
—
|
|
|
N/A
|
|
|
1
|
|
|
—
|
|
|
N/A
|
|
||||
Total other expense (income)
|
6
|
|
|
6
|
|
|
0
|
%
|
|
24
|
|
|
18
|
|
|
33
|
%
|
||||
Pre-tax income
|
319
|
|
|
310
|
|
|
3
|
%
|
|
941
|
|
|
928
|
|
|
1
|
%
|
||||
Provision for income taxes
|
122
|
|
|
120
|
|
|
2
|
%
|
|
344
|
|
|
352
|
|
|
(2
|
)%
|
||||
Net income
|
$
|
197
|
|
|
$
|
190
|
|
|
4
|
%
|
|
$
|
597
|
|
|
$
|
576
|
|
|
4
|
%
|
Other information:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Effective income tax rate
|
38.2
|
%
|
|
38.7
|
%
|
|
|
|
36.6
|
%
|
|
37.9
|
%
|
|
|
||||||
Average debt outstanding
|
$
|
1,783
|
|
|
$
|
1,101
|
|
|
62
|
%
|
|
$
|
1,500
|
|
|
$
|
1,086
|
|
|
38
|
%
|
Effective interest rate incurred on borrowings
|
2.87
|
%
|
|
2.20
|
%
|
|
|
|
2.69
|
%
|
|
2.22
|
%
|
|
|
|
|
Net Capital
|
|
Early Warning
Threshold
|
|
Net Capital in
Excess of
Early Warning
Threshold
|
||||||
TD Ameritrade Clearing, Inc.
|
|
$
|
1,533
|
|
|
$
|
767
|
|
|
$
|
766
|
|
TD Ameritrade, Inc.
|
|
$
|
264
|
|
|
$
|
1
|
|
|
$
|
263
|
|
TD Ameritrade Futures & Forex LLC
|
|
$
|
57
|
|
|
$
|
12
|
|
|
$
|
45
|
|
|
Liquid Assets -
Management Target
|
|
Liquid Assets -
Regulatory Threshold
|
||||||||||||||||||||
|
Jun. 30,
|
|
Sept. 30,
|
|
|
|
Jun. 30,
|
|
Sept. 30,
|
|
|
||||||||||||
|
2015
|
|
2014
|
|
Change
|
|
2015
|
|
2014
|
|
Change
|
||||||||||||
Cash and cash equivalents
|
$
|
2,233
|
|
|
$
|
1,460
|
|
|
$
|
773
|
|
|
$
|
2,233
|
|
|
$
|
1,460
|
|
|
$
|
773
|
|
Less: Non-corporate cash and cash equivalents
|
(1,116
|
)
|
|
(1,162
|
)
|
|
46
|
|
|
(1,116
|
)
|
|
(1,162
|
)
|
|
46
|
|
||||||
Corporate cash and cash equivalents
|
1,117
|
|
|
298
|
|
|
819
|
|
|
1,117
|
|
|
298
|
|
|
819
|
|
||||||
Less: Corporate liquidity maintained for operational contingencies
|
(750
|
)
|
|
—
|
|
|
(750
|
)
|
|
(750
|
)
|
|
—
|
|
|
(750
|
)
|
||||||
Excess corporate cash and cash equivalents
|
367
|
|
|
298
|
|
|
69
|
|
|
367
|
|
|
298
|
|
|
69
|
|
||||||
Excess trust company Tier 1 capital
|
—
|
|
|
—
|
|
|
—
|
|
|
14
|
|
|
12
|
|
|
2
|
|
||||||
Excess broker-dealer and FCM regulatory net capital
|
214
|
|
|
464
|
|
|
(250
|
)
|
|
1,074
|
|
|
1,196
|
|
|
(122
|
)
|
||||||
Liquid assets
|
$
|
581
|
|
|
$
|
762
|
|
|
$
|
(181
|
)
|
|
$
|
1,455
|
|
|
$
|
1,506
|
|
|
$
|
(51
|
)
|
|
Liquid Assets
|
||||||
|
Management
Target
|
|
Regulatory
Threshold
|
||||
Liquid assets as of September 30, 2014
|
$
|
762
|
|
|
$
|
1,506
|
|
|
|
|
|
||||
Plus: EBITDA
(1)
|
1,107
|
|
|
1,107
|
|
||
Proceeds from issuance of long-term debt
(2)
|
498
|
|
|
498
|
|
||
Proceeds from exercise of stock options
|
12
|
|
|
12
|
|
||
Proceeds from the sale of investments
|
10
|
|
|
10
|
|
||
Other investing activities
|
3
|
|
|
3
|
|
||
|
|
|
|
||||
Less: Income taxes paid
|
(355
|
)
|
|
(355
|
)
|
||
Interest paid
|
(23
|
)
|
|
(23
|
)
|
||
Purchase of property and equipment
|
(58
|
)
|
|
(58
|
)
|
||
Principal payments on long-term debt
|
(544
|
)
|
|
(544
|
)
|
||
Principal payments on notes payable
|
(150
|
)
|
|
(150
|
)
|
||
Payment of cash dividends
|
(244
|
)
|
|
(244
|
)
|
||
Purchase of treasury stock
|
(148
|
)
|
|
(148
|
)
|
||
Payment of debt issuance costs
|
(11
|
)
|
|
(11
|
)
|
||
Additional net capital requirement due to increase in aggregate debits
|
(133
|
)
|
|
(67
|
)
|
||
Change in net capital related to daily futures client cash sweep
|
(62
|
)
|
|
(62
|
)
|
||
Transfer of futures and foreign exchange business to TDAFF
(3)
|
(51
|
)
|
|
—
|
|
||
Other changes in working capital and regulatory net capital
|
(32
|
)
|
|
(19
|
)
|
||
Liquid assets as of June 30, 2015
|
$
|
581
|
|
|
$
|
1,455
|
|
|
(1)
|
See "Financial Performance Metrics" earlier in this section for a description of EBITDA.
|
(2)
|
Excludes $750 million from the 2.950% Senior Notes issued on March 4, 2015 that is being maintained to provide liquidity for operational contingencies.
|
(3)
|
On March 29, 2015, we transferred our futures and foreign exchange business from TD Ameritrade, Inc. to TDAFF. The regulatory net capital associated with the futures and foreign exchange business was part of the net capital in excess of TD Ameritrade Inc.'s $50 million liquid assets - management target prior to the transfer, but management no longer considers it to be available for liquid assets
–
management target purposes as part of a separately regulated FCM entity.
|
|
TD Ameritrade Holding Corporation
|
||
|
(Registrant)
|
||
|
|
|
|
|
By:
|
|
/s/ FREDRIC J. TOMCZYK
|
|
|
|
Fredric J. Tomczyk
|
|
|
|
President and Chief Executive Officer
|
|
|
|
(Principal Executive Officer)
|
|
|
|
|
|
By:
|
|
/s/ WILLIAM J. GERBER
|
|
|
|
William J. Gerber
|
|
|
|
Executive Vice President, Chief Financial Officer
|
|
|
|
(Principal Financial and Accounting Officer)
|
Scheduled Vesting:
|
The Restricted Stock Units will vest in accordance with the schedule set forth in Appendices A and B (attached) and provisions of the Plan and this Agreement.
|
Settlement Date:
|
For each Restricted Stock Unit that becomes vested, one Share will be issued in accordance with the terms specified in Appendices A and B.
|
Acceptance:
|
You must accept this grant of Restricted Stock Units prior to the Acceptance Deadline, which is sixty (60) days from the Grant Date.
|
(1)
|
Registration Statement (Form S-8 No. 333-132016)
|
(2)
|
Registration Statement (Form S-8 No. 333-105336)
|
(3)
|
Registration Statement (Form S-8 No. 333-86164)
|
(4)
|
Registration Statement (Form S-8 No. 333-77573) pertaining to the Associates’ 401(k) Profit Sharing Plan and Trust
|
(5)
|
Registration Statement (Form S-8 No. 333-160073)
|
(6)
|
Registration Statement (Form S-3 No. 333-163211)
|
(7)
|
Registration Statement (Form S-3 No. 333-185286)
|
1.
|
I have reviewed this quarterly report on Form 10-Q of TD Ameritrade Holding Corporation;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
5.
|
The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors:
|
|
/
S
/ FREDRIC J. TOMCZYK
|
|
Fredric J. Tomczyk
|
|
President and Chief Executive Officer
|
1.
|
I have reviewed this quarterly report on Form 10-Q of TD Ameritrade Holding Corporation;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
5.
|
The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors:
|
|
/s/ WILLIAM J. GERBER
|
|
William J. Gerber
|
|
Executive Vice President, Chief Financial Officer
|
|
|
|
Dated:
|
August 7, 2015
|
/s/ FREDRIC J. TOMCZYK
|
|
|
Fredric J. Tomczyk
|
|
|
President, Chief Executive Officer
|
|
|
|
Dated:
|
August 7, 2015
|
/s/ WILLIAM J. GERBER
|
|
|
William J. Gerber
|
|
|
Executive Vice President,
|
|
|
Chief Financial Officer
|