|
|
|
x
|
Quarterly report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
|
¨
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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
|
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Accelerated filer
|
|
¨
|
|
|
|
|
|
|
|
Non-accelerated filer
|
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¨
(Do not check if a smaller reporting company)
|
|
Smaller reporting company
|
|
¨
|
|
|
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Page No.
|
|
|
|
|
|
|
|
|
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Item 1.
|
|
|
|
||
|
||
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|
||
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Item 2.
|
||
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Item 3.
|
||
|
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Item 4.
|
||
|
|
|
|
|
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|
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Item 1.
|
||
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Item 1A.
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||
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|
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Item 2.
|
||
|
|
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Item 6.
|
||
|
|
|
|
|
|
June 30,
2016 |
|
September 30,
2015 |
||||
|
|
(In millions)
|
||||||
ASSETS
|
|
|
|
|
||||
Cash and cash equivalents
|
|
$
|
1,917
|
|
|
$
|
1,978
|
|
Short-term investments available-for-sale, at fair value
|
|
404
|
|
|
4
|
|
||
Cash and investments segregated and on deposit for regulatory purposes
|
|
7,064
|
|
|
6,305
|
|
||
Receivable from brokers, dealers and clearing organizations
|
|
1,293
|
|
|
862
|
|
||
Receivable from clients, net
|
|
12,162
|
|
|
12,770
|
|
||
Receivable from affiliates
|
|
96
|
|
|
93
|
|
||
Other receivables, net
|
|
132
|
|
|
144
|
|
||
Securities owned, at fair value
|
|
237
|
|
|
425
|
|
||
Property and equipment at cost, net
|
|
531
|
|
|
521
|
|
||
Goodwill
|
|
2,467
|
|
|
2,467
|
|
||
Acquired intangible assets, net
|
|
595
|
|
|
661
|
|
||
Other assets
|
|
209
|
|
|
145
|
|
||
Total assets
|
|
$
|
27,107
|
|
|
$
|
26,375
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY
|
|
|
|
|
||||
Liabilities:
|
|
|
|
|
||||
Payable to brokers, dealers and clearing organizations
|
|
$
|
1,932
|
|
|
$
|
2,707
|
|
Payable to clients
|
|
17,504
|
|
|
16,035
|
|
||
Accounts payable and other liabilities
|
|
573
|
|
|
637
|
|
||
Payable to affiliates
|
|
5
|
|
|
6
|
|
||
Long-term debt
|
|
1,828
|
|
|
1,800
|
|
||
Deferred income taxes
|
|
293
|
|
|
287
|
|
||
Total liabilities
|
|
22,135
|
|
|
21,472
|
|
||
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, 2016 - 527 million shares outstanding;
September 30, 2015 - 537 million shares outstanding
|
|
6
|
|
|
6
|
|
||
Additional paid-in capital
|
|
1,654
|
|
|
1,649
|
|
||
Retained earnings
|
|
5,423
|
|
|
5,038
|
|
||
Treasury stock, common, at cost:
June 30, 2016 - 104 million shares;
September 30, 2015 - 94 million shares
|
|
(2,088
|
)
|
|
(1,765
|
)
|
||
Accumulated other comprehensive loss
|
|
(23
|
)
|
|
(25
|
)
|
||
Total stockholders' equity
|
|
4,972
|
|
|
4,903
|
|
||
Total liabilities and stockholders' equity
|
|
$
|
27,107
|
|
|
$
|
26,375
|
|
|
|
Three Months Ended June 30,
|
|
Nine Months Ended June 30,
|
||||||||||||
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||
|
|
|
|
(In millions, except per share amounts)
|
|
|
||||||||||
Revenues:
|
|
|
|
|
|
|
|
|
||||||||
Transaction-based revenues:
|
|
|
|
|
|
|
|
|
||||||||
Commissions and transaction fees
|
|
$
|
347
|
|
|
$
|
328
|
|
|
$
|
1,035
|
|
|
$
|
1,036
|
|
Asset-based revenues:
|
|
|
|
|
|
|
|
|
||||||||
Insured deposit account fees
|
|
234
|
|
|
209
|
|
|
696
|
|
|
620
|
|
||||
Net interest revenue
|
|
143
|
|
|
156
|
|
|
444
|
|
|
467
|
|
||||
Investment product fees
|
|
96
|
|
|
85
|
|
|
276
|
|
|
253
|
|
||||
Total asset-based revenues
|
|
473
|
|
|
450
|
|
|
1,416
|
|
|
1,340
|
|
||||
Other revenues
|
|
18
|
|
|
16
|
|
|
46
|
|
|
39
|
|
||||
Net revenues
|
|
838
|
|
|
794
|
|
|
2,497
|
|
|
2,415
|
|
||||
Operating expenses:
|
|
|
|
|
|
|
|
|
||||||||
Employee compensation and benefits
|
|
209
|
|
|
202
|
|
|
617
|
|
|
608
|
|
||||
Clearing and execution costs
|
|
35
|
|
|
36
|
|
|
102
|
|
|
108
|
|
||||
Communications
|
|
33
|
|
|
31
|
|
|
99
|
|
|
92
|
|
||||
Occupancy and equipment costs
|
|
43
|
|
|
40
|
|
|
128
|
|
|
121
|
|
||||
Depreciation and amortization
|
|
23
|
|
|
23
|
|
|
67
|
|
|
69
|
|
||||
Amortization of acquired intangible assets
|
|
22
|
|
|
22
|
|
|
66
|
|
|
67
|
|
||||
Professional services
|
|
47
|
|
|
43
|
|
|
121
|
|
|
120
|
|
||||
Advertising
|
|
58
|
|
|
54
|
|
|
202
|
|
|
199
|
|
||||
Other
|
|
20
|
|
|
18
|
|
|
61
|
|
|
66
|
|
||||
Total operating expenses
|
|
490
|
|
|
469
|
|
|
1,463
|
|
|
1,450
|
|
||||
Operating income
|
|
348
|
|
|
325
|
|
|
1,034
|
|
|
965
|
|
||||
Other expense (income):
|
|
|
|
|
|
|
|
|
||||||||
Interest on borrowings
|
|
14
|
|
|
13
|
|
|
39
|
|
|
30
|
|
||||
Gain on sale of investments
|
|
—
|
|
|
(7
|
)
|
|
—
|
|
|
(7
|
)
|
||||
Other
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1
|
|
||||
Total other expense (income)
|
|
14
|
|
|
6
|
|
|
39
|
|
|
24
|
|
||||
Pre-tax income
|
|
334
|
|
|
319
|
|
|
995
|
|
|
941
|
|
||||
Provision for income taxes
|
|
94
|
|
|
122
|
|
|
338
|
|
|
344
|
|
||||
Net income
|
|
$
|
240
|
|
|
$
|
197
|
|
|
$
|
657
|
|
|
$
|
597
|
|
Earnings per share - basic
|
|
$
|
0.45
|
|
|
$
|
0.36
|
|
|
$
|
1.23
|
|
|
$
|
1.10
|
|
Earnings per share - diluted
|
|
$
|
0.45
|
|
|
$
|
0.36
|
|
|
$
|
1.23
|
|
|
$
|
1.09
|
|
Weighted average shares outstanding - basic
|
|
529
|
|
|
544
|
|
|
533
|
|
|
544
|
|
||||
Weighted average shares outstanding - diluted
|
|
531
|
|
|
547
|
|
|
536
|
|
|
547
|
|
||||
Dividends declared per share
|
|
$
|
0.17
|
|
|
$
|
0.15
|
|
|
$
|
0.51
|
|
|
$
|
0.45
|
|
|
|
Three Months Ended
June 30, |
|
Nine Months Ended
June 30, |
||||||||||||
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||
|
|
|
|
(In millions)
|
|
|
||||||||||
Net income
|
|
$
|
240
|
|
|
$
|
197
|
|
|
$
|
657
|
|
|
$
|
597
|
|
Other comprehensive income (loss), before tax:
|
|
|
|
|
|
|
|
|
||||||||
Cash flow hedging instruments:
|
|
|
|
|
|
|
|
|
||||||||
Net unrealized loss
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(15
|
)
|
||||
Reclassification adjustment for portion of realized loss amortized to net income
|
|
1
|
|
|
1
|
|
|
3
|
|
|
3
|
|
||||
Total other comprehensive income (loss), before tax
|
|
1
|
|
|
1
|
|
|
3
|
|
|
(12
|
)
|
||||
Income tax effect
|
|
—
|
|
|
(1
|
)
|
|
(1
|
)
|
|
4
|
|
||||
Total other comprehensive income (loss), net of tax
|
|
1
|
|
|
—
|
|
|
2
|
|
|
(8
|
)
|
||||
Comprehensive income
|
|
$
|
241
|
|
|
$
|
197
|
|
|
$
|
659
|
|
|
$
|
589
|
|
|
|
Nine Months Ended June 30,
|
||||||
|
|
2016
|
|
2015
|
||||
|
|
(In millions)
|
||||||
Cash flows from operating activities:
|
|
|
|
|
||||
Net income
|
|
$
|
657
|
|
|
$
|
597
|
|
Adjustments to reconcile net income to net cash provided by operating activities:
|
|
|
|
|
||||
Depreciation and amortization
|
|
67
|
|
|
69
|
|
||
Amortization of acquired intangible assets
|
|
66
|
|
|
67
|
|
||
Deferred income taxes
|
|
5
|
|
|
(11
|
)
|
||
Gain on sale investments
|
|
—
|
|
|
(7
|
)
|
||
Stock-based compensation
|
|
24
|
|
|
27
|
|
||
Excess tax benefits on stock-based compensation
|
|
(16
|
)
|
|
(14
|
)
|
||
Other, net
|
|
6
|
|
|
3
|
|
||
Changes in operating assets and liabilities:
|
|
|
|
|
||||
Cash and investments segregated and on deposit for regulatory purposes
|
|
(759
|
)
|
|
691
|
|
||
Receivable from brokers, dealers and clearing organizations
|
|
(431
|
)
|
|
(36
|
)
|
||
Receivable from clients, net
|
|
608
|
|
|
(1,229
|
)
|
||
Receivable from/payable to affiliates, net
|
|
(4
|
)
|
|
(7
|
)
|
||
Other receivables, net
|
|
12
|
|
|
6
|
|
||
Securities owned, at fair value
|
|
188
|
|
|
(79
|
)
|
||
Other assets
|
|
(37
|
)
|
|
33
|
|
||
Payable to brokers, dealers and clearing organizations
|
|
(775
|
)
|
|
(7
|
)
|
||
Payable to clients
|
|
1,469
|
|
|
573
|
|
||
Accounts payable and other liabilities
|
|
(48
|
)
|
|
(33
|
)
|
||
Net cash provided by operating activities
|
|
1,032
|
|
|
643
|
|
||
Cash flows from investing activities:
|
|
|
|
|
||||
Purchase of property and equipment
|
|
(78
|
)
|
|
(58
|
)
|
||
Purchase of short-term investments
|
|
(602
|
)
|
|
(503
|
)
|
||
Proceeds from sale and maturity of short-term investments
|
|
201
|
|
|
501
|
|
||
Proceeds from sale of investments
|
|
—
|
|
|
10
|
|
||
Other
|
|
—
|
|
|
3
|
|
||
Net cash used in investing activities
|
|
(479
|
)
|
|
(47
|
)
|
|
|
Nine Months Ended June 30,
|
||||||
|
|
2016
|
|
2015
|
||||
|
|
(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
|
)
|
||
Principal payments on notes payable
|
|
—
|
|
|
(150
|
)
|
||
Payment of cash dividends
|
|
(272
|
)
|
|
(244
|
)
|
||
Proceeds from exercise of stock options: Nine months ended
June 30, 2015 - 0.7 million shares
|
|
—
|
|
|
12
|
|
||
Purchase of treasury stock: Nine months ended
June 30, 2016 - 10.7 million shares; 2015 - 3.9 million shares
|
|
(319
|
)
|
|
(126
|
)
|
||
Purchase of treasury stock for income tax withholding on stock-based compensation: Nine months ended June 30, 2016 - 0.9 million shares; 2015 - 0.6 million shares
|
|
(30
|
)
|
|
(22
|
)
|
||
Payment for future treasury stock purchases under accelerated stock repurchase agreement
|
|
(9
|
)
|
|
—
|
|
||
Excess tax benefits on stock-based compensation
|
|
16
|
|
|
14
|
|
||
Net cash provided by (used in) financing activities
|
|
(614
|
)
|
|
177
|
|
||
Net increase (decrease) in cash and cash equivalents
|
|
(61
|
)
|
|
773
|
|
||
Cash and cash equivalents at beginning of period
|
|
1,978
|
|
|
1,460
|
|
||
Cash and cash equivalents at end of period
|
|
$
|
1,917
|
|
|
$
|
2,233
|
|
Supplemental cash flow information:
|
|
|
|
|
||||
Interest paid
|
|
$
|
46
|
|
|
$
|
23
|
|
Income taxes paid
|
|
$
|
377
|
|
|
$
|
355
|
|
•
|
ASU 2016-08,
Principal versus Agent Considerations (Reporting Revenue Gross versus Net);
|
•
|
ASU 2016-10,
Identifying Performance Obligations and Licensing;
and
|
•
|
ASU 2016-12,
Narrow-Scope Improvements and Practical Expedients.
|
|
|
June 30,
2016 |
|
September 30,
2015 |
||||
Broker-dealer subsidiaries
|
|
$
|
877
|
|
|
$
|
721
|
|
Corporate
|
|
829
|
|
|
1,069
|
|
||
Futures commission merchant and forex dealer member subsidiary
|
|
123
|
|
|
72
|
|
||
Trust company subsidiary
|
|
67
|
|
|
77
|
|
||
Investment advisory subsidiaries
|
|
21
|
|
|
39
|
|
||
Total
|
|
$
|
1,917
|
|
|
$
|
1,978
|
|
|
|
June 30,
2016 |
|
September 30,
2015 |
||||
U.S. government debt securities
|
|
$
|
4,954
|
|
|
$
|
3,706
|
|
Reverse repurchase agreements (collateralized by U.S. government debt securities)
|
|
1,390
|
|
|
1,586
|
|
||
Cash in demand deposit accounts
|
|
537
|
|
|
802
|
|
||
Cash on deposit with futures commission merchants
|
|
108
|
|
|
136
|
|
||
U.S. government debt securities on deposit with futures commission merchant
|
|
75
|
|
|
75
|
|
||
Total
|
|
$
|
7,064
|
|
|
$
|
6,305
|
|
June 30, 2016
|
|
Face
Value
|
|
Unamortized Discounts and Debt Issuance Costs
|
|
Fair Value
Adjustment
(1)
|
|
Net Carrying
Value
|
||||||||
Senior Notes:
|
|
|
|
|
|
|
|
|
||||||||
5.600% Notes due 2019
|
|
$
|
500
|
|
|
$
|
(2
|
)
|
|
$
|
40
|
|
|
$
|
538
|
|
2.950% Notes due 2022
|
|
750
|
|
|
(6
|
)
|
|
—
|
|
|
744
|
|
||||
3.625% Notes due 2025
|
|
500
|
|
|
(4
|
)
|
|
50
|
|
|
546
|
|
||||
Total long-term debt
|
|
$
|
1,750
|
|
|
$
|
(12
|
)
|
|
$
|
90
|
|
|
$
|
1,828
|
|
September 30, 2015
|
|
Face
Value
|
|
Unamortized Discounts and Debt Issuance Costs
|
|
Fair Value
Adjustment
(1)
|
|
Net Carrying
Value
|
||||||||
Senior Notes:
|
|
|
|
|
|
|
|
|
||||||||
5.600% Notes due 2019
|
|
$
|
500
|
|
|
$
|
(2
|
)
|
|
$
|
40
|
|
|
$
|
538
|
|
2.950% Notes due 2022
|
|
750
|
|
|
(7
|
)
|
|
—
|
|
|
743
|
|
||||
3.625% Notes due 2025
|
|
500
|
|
|
(4
|
)
|
|
23
|
|
|
519
|
|
||||
Total long-term debt
|
|
$
|
1,750
|
|
|
$
|
(13
|
)
|
|
$
|
63
|
|
|
$
|
1,800
|
|
|
(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,
|
||||||||||||
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||
Gain (loss) on fair value of interest rate swaps
|
|
$
|
13
|
|
|
$
|
(24
|
)
|
|
$
|
27
|
|
|
$
|
5
|
|
Gain (loss) on fair value of hedged fixed-rate debt
|
|
(13
|
)
|
|
24
|
|
|
(27
|
)
|
|
(5
|
)
|
||||
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,
|
||||||||||||
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||
Forward-starting interest rate swaps
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(15
|
)
|
|
|
Balance Sheet Location
|
|
June 30,
2016 |
|
September 30,
2015 |
||||
Interest rate contracts:
|
|
|
|
|
|
|
||||
Pay-variable interest rate swaps designated as fair
value hedges
|
|
Other assets
|
|
$
|
90
|
|
|
$
|
63
|
|
TD Ameritrade Clearing, Inc.
|
|||||||||||||||||||
Date
|
|
Net
Capital
|
|
Required
Net Capital
(2% of
Aggregate
Debit Balances)
|
|
Net Capital
in Excess of
Required
Net Capital
|
|
Net Capital in
Excess of
Early Warning
Threshold (5%
of Aggregate
Debit Balances)
|
|
Ratio of Net
Capital to
Aggregate
Debit Balances
|
|||||||||
June 30, 2016
|
|
$
|
1,613
|
|
|
$
|
293
|
|
|
$
|
1,320
|
|
|
$
|
879
|
|
|
10.99
|
%
|
September 30, 2015
|
|
$
|
1,581
|
|
|
$
|
310
|
|
|
$
|
1,271
|
|
|
$
|
807
|
|
|
10.22
|
%
|
TD Ameritrade, Inc.
|
||||||||||||
Date
|
|
Net
Capital
|
|
Net Capital
in Excess of
the $250,000
Minimum Dollar
Requirement
|
|
Net Capital in
Excess of
Early Warning
Threshold
(120% of
Required
Net Capital)
|
||||||
June 30, 2016
|
|
$
|
167
|
|
|
$
|
166
|
|
|
$
|
166
|
|
September 30, 2015
|
|
$
|
228
|
|
|
$
|
228
|
|
|
$
|
227
|
|
TD Ameritrade Futures & Forex LLC
|
||||||||||||||||
Date
|
|
Net
Capital
|
|
Required Net Capital (8% of Total Risk Margin or $20 Million Plus 5% of All Foreign Exchange Liabilities Owed to Clients in Excess of $10 Million)
|
|
Net Capital
in Excess of
Required
Net Capital
|
|
Net Capital in
Excess of
Early Warning
Threshold
(110% of
Required
Net Capital)
|
||||||||
June 30, 2016
|
|
$
|
110
|
|
|
$
|
22
|
|
|
$
|
88
|
|
|
$
|
86
|
|
September 30, 2015
|
|
$
|
90
|
|
|
$
|
12
|
|
|
$
|
78
|
|
|
$
|
78
|
|
|
|
June 30,
2016 |
|
September 30,
2015 |
||||
Client margin securities
|
|
$
|
16.8
|
|
|
$
|
17.7
|
|
Stock borrowings
|
|
1.0
|
|
|
0.7
|
|
||
Total collateral available
|
|
$
|
17.8
|
|
|
$
|
18.4
|
|
|
|
|
|
|
||||
Collateral loaned
|
|
$
|
1.9
|
|
|
$
|
2.7
|
|
Collateral repledged
|
|
3.0
|
|
|
3.8
|
|
||
Total collateral loaned or repledged
|
|
$
|
4.9
|
|
|
$
|
6.5
|
|
•
|
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, 2016
|
||||||||||||||
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Fair Value
|
||||||||
Assets:
|
|
|
|
|
|
|
|
|
||||||||
Cash equivalents:
|
|
|
|
|
|
|
|
|
||||||||
Money market mutual funds
|
|
$
|
1,717
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1,717
|
|
Short-term investments available-for-sale:
|
|
|
|
|
|
|
|
|
||||||||
U.S. government debt securities
|
|
—
|
|
|
404
|
|
|
—
|
|
|
404
|
|
||||
Investments segregated for regulatory purposes:
|
|
|
|
|
|
|
|
|
||||||||
U.S. government debt securities
|
|
—
|
|
|
5,029
|
|
|
—
|
|
|
5,029
|
|
||||
Securities owned:
|
|
|
|
|
|
|
|
|
||||||||
U.S. government debt securities
|
|
—
|
|
|
225
|
|
|
—
|
|
|
225
|
|
||||
Other
|
|
6
|
|
|
6
|
|
|
—
|
|
|
12
|
|
||||
Subtotal - Securities owned
|
|
6
|
|
|
231
|
|
|
—
|
|
|
237
|
|
||||
Other assets:
|
|
|
|
|
|
|
|
|
||||||||
Pay-variable interest rate swaps
(1)
|
|
—
|
|
|
90
|
|
|
—
|
|
|
90
|
|
||||
Auction rate securities
|
|
—
|
|
|
—
|
|
|
1
|
|
|
1
|
|
||||
Subtotal - Other assets
|
|
—
|
|
|
90
|
|
|
1
|
|
|
91
|
|
||||
Total assets at fair value
|
|
$
|
1,723
|
|
|
$
|
5,754
|
|
|
$
|
1
|
|
|
$
|
7,478
|
|
Liabilities:
|
|
|
|
|
|
|
|
|
||||||||
Accounts payable and other liabilities:
|
|
|
|
|
|
|
|
|
||||||||
Securities sold, not yet purchased:
|
|
|
|
|
|
|
|
|
||||||||
Equity securities
|
|
$
|
32
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
32
|
|
|
(1)
|
See "
Fair Value Hedging
" in Note
5
for details.
|
|
|
As of September 30, 2015
|
||||||||||||||
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Fair Value
|
||||||||
Assets:
|
|
|
|
|
|
|
|
|
||||||||
Cash equivalents:
|
|
|
|
|
|
|
|
|
||||||||
Money market mutual funds
|
|
$
|
1,888
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1,888
|
|
Short-term investments available-for-sale:
|
|
|
|
|
|
|
|
|
||||||||
U.S. government debt securities
|
|
—
|
|
|
4
|
|
|
—
|
|
|
4
|
|
||||
Investments segregated for regulatory purposes:
|
|
|
|
|
|
|
|
|
||||||||
U.S. government debt securities
|
|
—
|
|
|
3,781
|
|
|
—
|
|
|
3,781
|
|
||||
Securities owned:
|
|
|
|
|
|
|
|
|
||||||||
Money market and other mutual funds
|
|
—
|
|
|
—
|
|
|
2
|
|
|
2
|
|
||||
U.S. government debt securities
|
|
—
|
|
|
415
|
|
|
—
|
|
|
415
|
|
||||
Other
|
|
3
|
|
|
5
|
|
|
—
|
|
|
8
|
|
||||
Subtotal - Securities owned
|
|
3
|
|
|
420
|
|
|
2
|
|
|
425
|
|
||||
Other assets:
|
|
|
|
|
|
|
|
|
||||||||
Pay-variable interest rate swaps
(1)
|
|
—
|
|
|
63
|
|
|
—
|
|
|
63
|
|
||||
Auction rate securities
|
|
—
|
|
|
—
|
|
|
1
|
|
|
1
|
|
||||
Subtotal - Other assets
|
|
—
|
|
|
63
|
|
|
1
|
|
|
64
|
|
||||
Total assets at fair value
|
|
$
|
1,891
|
|
|
$
|
4,268
|
|
|
$
|
3
|
|
|
$
|
6,162
|
|
Liabilities:
|
|
|
|
|
|
|
|
|
||||||||
Accounts payable and other liabilities:
|
|
|
|
|
|
|
|
|
||||||||
Securities sold, not yet purchased:
|
|
|
|
|
|
|
|
|
||||||||
Equity securities
|
|
$
|
23
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
23
|
|
|
(1)
|
See "
Fair Value Hedging
" in Note
5
for details.
|
|
|
June 30, 2016
|
||||||||||||||||||||||
|
|
|
|
|
|
|
|
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
|
|
$
|
1,390
|
|
|
$
|
—
|
|
|
$
|
1,390
|
|
|
$
|
—
|
|
|
$
|
(1,390
|
)
|
|
$
|
—
|
|
Receivable from brokers, dealers
and clearing organizations:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Deposits paid for
securities borrowed
(1)
|
|
986
|
|
|
—
|
|
|
986
|
|
|
(82
|
)
|
|
(892
|
)
|
|
12
|
|
||||||
Other assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Pay-variable interest rate swaps
|
|
90
|
|
|
—
|
|
|
90
|
|
|
—
|
|
|
(90
|
)
|
|
—
|
|
||||||
Total
|
|
$
|
2,466
|
|
|
$
|
—
|
|
|
$
|
2,466
|
|
|
$
|
(82
|
)
|
|
$
|
(2,372
|
)
|
|
$
|
12
|
|
Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Payable to brokers, dealers
and clearing organizations:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Deposits received for
securities loaned
(2)(3)
|
|
$
|
1,851
|
|
|
$
|
—
|
|
|
$
|
1,851
|
|
|
$
|
(82
|
)
|
|
$
|
(1,592
|
)
|
|
$
|
177
|
|
|
|
September 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
|
|
$
|
1,586
|
|
|
$
|
—
|
|
|
$
|
1,586
|
|
|
$
|
—
|
|
|
$
|
(1,586
|
)
|
|
$
|
—
|
|
Receivable from brokers, dealers
and clearing organizations: |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Deposits paid for
securities borrowed
(1)
|
|
664
|
|
|
—
|
|
|
664
|
|
|
(70
|
)
|
|
(585
|
)
|
|
9
|
|
||||||
Other assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Pay-variable interest rate swaps
|
|
63
|
|
|
—
|
|
|
63
|
|
|
—
|
|
|
(63
|
)
|
|
—
|
|
||||||
Total
|
|
$
|
2,313
|
|
|
$
|
—
|
|
|
$
|
2,313
|
|
|
$
|
(70
|
)
|
|
$
|
(2,234
|
)
|
|
$
|
9
|
|
Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Payable to brokers, dealers
and clearing organizations:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Deposits received for
securities loaned
(2)(3)
|
|
$
|
2,653
|
|
|
$
|
—
|
|
|
$
|
2,653
|
|
|
$
|
(70
|
)
|
|
$
|
(2,364
|
)
|
|
$
|
219
|
|
|
(1)
|
Included in the gross amounts of deposits paid for securities borrowed is
$431 million
and
$332 million
as of
June 30, 2016
and
September 30, 2015
, 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
$910 million
and
$1,164 million
as of
June 30, 2016
and
September 30, 2015
, 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):
|
|
|
June 30,
2016 |
|
September 30,
2015 |
||||
Deposits received for securities loaned:
|
|
|
|
|
||||
Equity securities
|
|
$
|
1,634
|
|
|
$
|
2,413
|
|
Exchange-traded funds
|
|
132
|
|
|
150
|
|
||
Closed-end funds
|
|
56
|
|
|
41
|
|
||
Other
|
|
29
|
|
|
49
|
|
||
Total
|
|
$
|
1,851
|
|
|
$
|
2,653
|
|
(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, 2016
and
September 30, 2015
, the Company had received total collateral with a fair value of
$2,487 million
and
$2,350 million
, respectively, and pledged total collateral with a fair value of
$1,668 million
and
$2,437 million
, respectively.
|
(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,
|
||||||||||||||||||||||
|
|
2016
|
|
2015
|
||||||||||||||||||||
|
|
Before Tax
|
|
Tax Effect
|
|
Net of Tax
|
|
Before Tax
|
|
Tax Effect
|
|
Net of Tax
|
||||||||||||
Cash flow hedging instruments:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net unrealized loss
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Reclassification adjustment for portion of realized loss amortized to net income
(1)
|
|
1
|
|
|
—
|
|
|
1
|
|
|
1
|
|
|
(1
|
)
|
|
—
|
|
||||||
Other comprehensive income
|
|
$
|
1
|
|
|
$
|
—
|
|
|
$
|
1
|
|
|
$
|
1
|
|
|
$
|
(1
|
)
|
|
$
|
—
|
|
|
|
Nine Months Ended June 30,
|
||||||||||||||||||||||
|
|
2016
|
|
2015
|
||||||||||||||||||||
|
|
Before Tax
|
|
Tax Effect
|
|
Net of Tax
|
|
Before Tax
|
|
Tax Effect
|
|
Net of Tax
|
||||||||||||
Cash flow hedging instruments:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net unrealized loss
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(15
|
)
|
|
$
|
5
|
|
|
$
|
(10
|
)
|
Reclassification adjustment for portion of realized loss amortized to net income
(1)
|
|
3
|
|
|
(1
|
)
|
|
2
|
|
|
3
|
|
|
(1
|
)
|
|
2
|
|
||||||
Other comprehensive income (loss)
|
|
$
|
3
|
|
|
$
|
(1
|
)
|
|
$
|
2
|
|
|
$
|
(12
|
)
|
|
$
|
4
|
|
|
$
|
(8
|
)
|
|
(1)
|
The before tax reclassification amounts and the related tax effects are included in interest on borrowings and provision for income taxes, respectively, on the Condensed Consolidated Statements of Income.
|
|
|
Three Months Ended June 30,
|
|
Nine Months Ended June 30,
|
||||||||||||
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||
Cash flow hedging instruments:
|
|
|
|
|
|
|
|
|
||||||||
Beginning balance
|
|
$
|
(24
|
)
|
|
$
|
(26
|
)
|
|
$
|
(25
|
)
|
|
$
|
(18
|
)
|
Other comprehensive loss before reclassification
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(10
|
)
|
||||
Amount reclassified from accumulated other
comprehensive loss
|
|
1
|
|
|
—
|
|
|
2
|
|
|
2
|
|
||||
Current period change
|
|
1
|
|
|
—
|
|
|
2
|
|
|
(8
|
)
|
||||
Ending balance
|
|
$
|
(23
|
)
|
|
$
|
(26
|
)
|
|
$
|
(23
|
)
|
|
$
|
(26
|
)
|
|
|
|
|
Revenues from TD and Affiliates
|
||||||||||||||
|
|
Statement of Income
Classification
|
|
Three months ended
June 30, |
|
Nine months ended
June 30, |
||||||||||||
Description
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||||
Insured Deposit Account Agreement
|
|
Insured deposit account fees
|
|
$
|
234
|
|
|
$
|
209
|
|
|
$
|
696
|
|
|
$
|
620
|
|
Referral and Strategic Alliance Agreement
|
|
Various
|
|
4
|
|
|
3
|
|
|
10
|
|
|
9
|
|
||||
Mutual Fund Agreements
|
|
Investment product fees
|
|
4
|
|
|
—
|
|
|
7
|
|
|
—
|
|
||||
Other
|
|
Various
|
|
1
|
|
|
2
|
|
|
6
|
|
|
5
|
|
||||
Total revenues
|
|
$
|
243
|
|
|
$
|
214
|
|
|
$
|
719
|
|
|
$
|
634
|
|
|
|
|
|
Expenses to TD and Affiliates
|
||||||||||||||
|
|
Statement of Income
Classification
|
|
Three months ended
June 30, |
|
Nine months ended
June 30, |
||||||||||||
Description
|
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|||||||||
Canadian Call Center Services Agreement
|
|
Professional services
|
|
$
|
4
|
|
|
$
|
5
|
|
|
$
|
13
|
|
|
$
|
14
|
|
Other
|
|
Various
|
|
1
|
|
|
—
|
|
|
2
|
|
|
2
|
|
||||
Total expenses
|
|
$
|
5
|
|
|
$
|
5
|
|
|
$
|
15
|
|
|
$
|
16
|
|
|
|
June 30,
2016 |
|
September 30,
2015 |
||||
Assets:
|
|
|
|
|
||||
Receivable from brokers, dealers and clearing organizations
|
|
$
|
1
|
|
|
$
|
—
|
|
Receivable from affiliates
|
|
96
|
|
|
93
|
|
||
|
|
|
|
|
||||
Liabilities:
|
|
|
|
|
||||
Payable to brokers, dealers and clearing organizations
|
|
$
|
97
|
|
|
$
|
70
|
|
Payable to affiliates
|
|
5
|
|
|
6
|
|
|
|
Parent
|
|
Guarantor
Subsidiary
|
|
Non-Guarantor
Subsidiaries
|
|
Eliminations
|
|
Total
|
||||||||||
|
|
(In millions)
|
||||||||||||||||||
Net revenues
|
|
$
|
6
|
|
|
$
|
—
|
|
|
$
|
838
|
|
|
$
|
(6
|
)
|
|
$
|
838
|
|
Operating expenses
|
|
5
|
|
|
—
|
|
|
491
|
|
|
(6
|
)
|
|
490
|
|
|||||
Operating income
|
|
1
|
|
|
—
|
|
|
347
|
|
|
—
|
|
|
348
|
|
|||||
Other expense
|
|
14
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
14
|
|
|||||
Income (loss) before income taxes and equity
in income of subsidiaries
|
|
(13
|
)
|
|
—
|
|
|
347
|
|
|
—
|
|
|
334
|
|
|||||
Provision for (benefit from) income taxes
|
|
(5
|
)
|
|
—
|
|
|
99
|
|
|
—
|
|
|
94
|
|
|||||
Income (loss) before equity in income of
subsidiaries
|
|
(8
|
)
|
|
—
|
|
|
248
|
|
|
—
|
|
|
240
|
|
|||||
Equity in income of subsidiaries
|
|
248
|
|
|
248
|
|
|
—
|
|
|
(496
|
)
|
|
—
|
|
|||||
Net income
|
|
$
|
240
|
|
|
$
|
248
|
|
|
$
|
248
|
|
|
$
|
(496
|
)
|
|
$
|
240
|
|
|
|
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
|
|
$
|
16
|
|
|
$
|
—
|
|
|
$
|
2,497
|
|
|
$
|
(16
|
)
|
|
$
|
2,497
|
|
Operating expenses
|
|
15
|
|
|
—
|
|
|
1,464
|
|
|
(16
|
)
|
|
1,463
|
|
|||||
Operating income
|
|
1
|
|
|
—
|
|
|
1,033
|
|
|
—
|
|
|
1,034
|
|
|||||
Other expense
|
|
39
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
39
|
|
|||||
Income (loss) before income taxes and equity
in income of subsidiaries
|
|
(38
|
)
|
|
—
|
|
|
1,033
|
|
|
—
|
|
|
995
|
|
|||||
Provision for (benefit from) income taxes
|
|
(13
|
)
|
|
—
|
|
|
351
|
|
|
—
|
|
|
338
|
|
|||||
Income (loss) before equity in income of
subsidiaries
|
|
(25
|
)
|
|
—
|
|
|
682
|
|
|
—
|
|
|
657
|
|
|||||
Equity in income of subsidiaries
|
|
682
|
|
|
682
|
|
|
—
|
|
|
(1,364
|
)
|
|
—
|
|
|||||
Net income
|
|
$
|
657
|
|
|
$
|
682
|
|
|
$
|
682
|
|
|
$
|
(1,364
|
)
|
|
$
|
657
|
|
|
|
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 |
|
Total
|
||||||||
|
|
(In millions)
|
||||||||||||||
Net cash provided by operating activities
|
|
$
|
60
|
|
|
$
|
—
|
|
|
$
|
972
|
|
|
$
|
1,032
|
|
Cash flows from investing activities:
|
|
|
|
|
|
|
|
|
||||||||
Purchase of property and equipment
|
|
—
|
|
|
—
|
|
|
(78
|
)
|
|
(78
|
)
|
||||
Purchase of short-term investments
|
|
(601
|
)
|
|
—
|
|
|
(1
|
)
|
|
(602
|
)
|
||||
Proceeds from sale and maturity of short-term investments
|
|
200
|
|
|
—
|
|
|
1
|
|
|
201
|
|
||||
Net cash used in investing activities
|
|
(401
|
)
|
|
—
|
|
|
(78
|
)
|
|
(479
|
)
|
||||
Cash flows from financing activities:
|
|
|
|
|
|
|
|
|
||||||||
Payment of cash dividends
|
|
(272
|
)
|
|
—
|
|
|
—
|
|
|
(272
|
)
|
||||
Purchase of treasury stock
|
|
(319
|
)
|
|
—
|
|
|
—
|
|
|
(319
|
)
|
||||
Purchase of treasury stock for income tax withholding on
stock-based compensation
|
|
(30
|
)
|
|
—
|
|
|
—
|
|
|
(30
|
)
|
||||
Other, net
|
|
7
|
|
|
—
|
|
|
—
|
|
|
7
|
|
||||
Net cash used in financing activities
|
|
(614
|
)
|
|
—
|
|
|
—
|
|
|
(614
|
)
|
||||
Intercompany investing and financing activities, net
|
|
690
|
|
|
—
|
|
|
(690
|
)
|
|
—
|
|
||||
Net increase (decrease) in cash and cash equivalents
|
|
(265
|
)
|
|
—
|
|
|
204
|
|
|
(61
|
)
|
||||
Cash and cash equivalents at beginning of period
|
|
920
|
|
|
2
|
|
|
1,056
|
|
|
1,978
|
|
||||
Cash and cash equivalents at end of period
|
|
$
|
655
|
|
|
$
|
2
|
|
|
$
|
1,260
|
|
|
$
|
1,917
|
|
|
|
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
|
|
(126
|
)
|
|
—
|
|
|
—
|
|
|
(126
|
)
|
||||
Purchase of treasury stock for income tax withholding on
stock-based compensation
|
|
(22
|
)
|
|
—
|
|
|
—
|
|
|
(22
|
)
|
||||
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
|
|
|
|
Three months ended June 30,
|
|
Nine months ended June 30,
|
||||||||||||||||||||||||
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||||||||||||||
|
|
$
|
|
% of Net Revenues
|
|
$
|
|
% of Net Revenues
|
|
$
|
|
% of Net Revenues
|
|
$
|
|
% of Net Revenues
|
||||||||||||
Net income
|
|
$
|
240
|
|
|
28.6
|
%
|
|
$
|
197
|
|
|
24.8
|
%
|
|
$
|
657
|
|
|
26.3
|
%
|
|
$
|
597
|
|
|
24.7
|
%
|
Add:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Depreciation and amortization
|
|
23
|
|
|
2.7
|
%
|
|
23
|
|
|
2.9
|
%
|
|
67
|
|
|
2.7
|
%
|
|
69
|
|
|
2.9
|
%
|
||||
Amortization of acquired intangible assets
|
|
22
|
|
|
2.6
|
%
|
|
22
|
|
|
2.8
|
%
|
|
66
|
|
|
2.6
|
%
|
|
67
|
|
|
2.8
|
%
|
||||
Interest on borrowings
|
|
14
|
|
|
1.7
|
%
|
|
13
|
|
|
1.6
|
%
|
|
39
|
|
|
1.6
|
%
|
|
30
|
|
|
1.2
|
%
|
||||
Provision for income taxes
|
|
94
|
|
|
11.2
|
%
|
|
122
|
|
|
15.4
|
%
|
|
338
|
|
|
13.5
|
%
|
|
344
|
|
|
14.2
|
%
|
||||
EBITDA
|
|
$
|
393
|
|
|
46.9
|
%
|
|
$
|
377
|
|
|
47.5
|
%
|
|
$
|
1,167
|
|
|
46.7
|
%
|
|
$
|
1,107
|
|
|
45.8
|
%
|
|
|
Three months ended
June 30, |
|
Increase/
(Decrease)
|
|
Nine months ended
June 30, |
|
Increase/
(Decrease)
|
||||||||||||||||
|
|
2016
|
|
2015
|
|
|
2016
|
|
2015
|
|
||||||||||||||
Average insured deposit account balances
|
|
$
|
83,429
|
|
|
$
|
74,844
|
|
|
$
|
8,585
|
|
|
$
|
82,580
|
|
|
$
|
74,911
|
|
|
$
|
7,669
|
|
Average interest-earning assets
|
|
22,733
|
|
|
20,444
|
|
|
2,289
|
|
|
22,250
|
|
|
19,768
|
|
|
2,482
|
|
||||||
Average spread-based balances
|
|
$
|
106,162
|
|
|
$
|
95,288
|
|
|
$
|
10,874
|
|
|
$
|
104,830
|
|
|
$
|
94,679
|
|
|
$
|
10,151
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Insured deposit account fee revenue
|
|
$
|
234
|
|
|
$
|
209
|
|
|
$
|
25
|
|
|
$
|
696
|
|
|
$
|
620
|
|
|
$
|
76
|
|
Net interest revenue
|
|
143
|
|
|
156
|
|
|
(13
|
)
|
|
444
|
|
|
467
|
|
|
(23
|
)
|
||||||
Spread-based revenue
|
|
$
|
377
|
|
|
$
|
365
|
|
|
$
|
12
|
|
|
$
|
1,140
|
|
|
$
|
1,087
|
|
|
$
|
53
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Avg. annualized yield—insured deposit account fees
|
|
1.11
|
%
|
|
1.10
|
%
|
|
0.01
|
%
|
|
1.11
|
%
|
|
1.09
|
%
|
|
0.02
|
%
|
||||||
Avg. annualized yield—interest-earning assets
|
|
2.50
|
%
|
|
3.02
|
%
|
|
(0.52
|
)%
|
|
2.62
|
%
|
|
3.11
|
%
|
|
(0.49
|
)%
|
||||||
Net interest margin (NIM)
|
|
1.41
|
%
|
|
1.51
|
%
|
|
(0.10
|
)%
|
|
1.43
|
%
|
|
1.51
|
%
|
|
(0.08
|
)%
|
|
|
Interest Revenue (Expense)
|
|
Increase/
(Decrease)
|
|
Interest Revenue (Expense)
|
|
Increase/
(Decrease)
|
||||||||||||||||
|
|
Three months ended
June 30, |
|
|
Nine months ended
June 30, |
|
||||||||||||||||||
|
|
2016
|
|
2015
|
|
|
2016
|
|
2015
|
|
||||||||||||||
Segregated cash
|
|
$
|
5
|
|
|
$
|
1
|
|
|
$
|
4
|
|
|
$
|
9
|
|
|
$
|
4
|
|
|
$
|
5
|
|
Client margin balances
|
|
107
|
|
|
112
|
|
|
(5
|
)
|
|
329
|
|
|
328
|
|
|
1
|
|
||||||
Securities lending/borrowing, net
|
|
30
|
|
|
43
|
|
|
(13
|
)
|
|
104
|
|
|
135
|
|
|
(31
|
)
|
||||||
Other cash and interest-earning investments
|
|
1
|
|
|
—
|
|
|
1
|
|
|
3
|
|
|
1
|
|
|
2
|
|
||||||
Client credit balances
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1
|
)
|
|
(1
|
)
|
|
—
|
|
||||||
Net interest revenue
|
|
$
|
143
|
|
|
$
|
156
|
|
|
$
|
(13
|
)
|
|
$
|
444
|
|
|
$
|
467
|
|
|
$
|
(23
|
)
|
|
|
Average Balance
|
|
%
Change |
|
Average Balance
|
|
%
Change
|
||||||||||||||
|
|
Three months ended
June 30, |
|
|
Nine months ended
June 30, |
|
||||||||||||||||
|
|
2016
|
|
2015
|
|
|
2016
|
|
2015
|
|
||||||||||||
Segregated cash
|
|
$
|
7,425
|
|
|
$
|
3,976
|
|
|
87
|
%
|
|
$
|
6,713
|
|
|
$
|
4,546
|
|
|
48
|
%
|
Client margin balances
|
|
11,508
|
|
|
12,498
|
|
|
(8
|
)%
|
|
11,779
|
|
|
11,944
|
|
|
(1
|
)%
|
||||
Securities borrowing
|
|
1,005
|
|
|
966
|
|
|
4
|
%
|
|
836
|
|
|
943
|
|
|
(11
|
)%
|
||||
Other cash and interest-earning investments
|
|
2,795
|
|
|
3,004
|
|
|
(7
|
)%
|
|
2,922
|
|
|
2,335
|
|
|
25
|
%
|
||||
Interest-earning assets
|
|
$
|
22,733
|
|
|
$
|
20,444
|
|
|
11
|
%
|
|
$
|
22,250
|
|
|
$
|
19,768
|
|
|
13
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Client credit balances
|
|
$
|
14,706
|
|
|
$
|
12,226
|
|
|
20
|
%
|
|
$
|
14,385
|
|
|
$
|
12,150
|
|
|
18
|
%
|
Securities lending
|
|
2,083
|
|
|
2,210
|
|
|
(6
|
)%
|
|
2,132
|
|
|
2,215
|
|
|
(4
|
)%
|
||||
Interest-bearing liabilities
|
|
$
|
16,789
|
|
|
$
|
14,436
|
|
|
16
|
%
|
|
$
|
16,517
|
|
|
$
|
14,365
|
|
|
15
|
%
|
|
|
Fee Revenue
|
|
Increase/
(Decrease)
|
|
Fee Revenue
|
|
Increase/
(Decrease)
|
||||||||||||||||
|
|
Three months ended
June 30, |
|
|
Nine months ended
June 30, |
|
||||||||||||||||||
|
|
2016
|
|
2015
|
|
|
2016
|
|
2015
|
|
||||||||||||||
Money market mutual fund
|
|
$
|
4
|
|
|
$
|
—
|
|
|
$
|
4
|
|
|
$
|
7
|
|
|
$
|
—
|
|
|
$
|
7
|
|
Market fee-based investment balances
|
|
92
|
|
|
85
|
|
|
7
|
|
|
269
|
|
|
253
|
|
|
16
|
|
||||||
Total investment product fees
|
|
$
|
96
|
|
|
$
|
85
|
|
|
$
|
11
|
|
|
$
|
276
|
|
|
$
|
253
|
|
|
$
|
23
|
|
|
|
Average Balance
|
|
%
Change |
|
Average Balance
|
|
%
Change
|
||||||||||||||
|
|
Three months ended
June 30, |
|
|
Nine months ended
June 30, |
|
||||||||||||||||
|
|
2016
|
|
2015
|
|
|
2016
|
|
2015
|
|
||||||||||||
Money market mutual fund
|
|
$
|
5,778
|
|
|
$
|
5,573
|
|
|
4
|
%
|
|
$
|
5,782
|
|
|
$
|
5,599
|
|
|
3
|
%
|
Market fee-based investment balances
|
|
156,340
|
|
|
155,699
|
|
|
0
|
%
|
|
152,176
|
|
|
150,093
|
|
|
1
|
%
|
||||
Total fee-based investment balances
|
|
$
|
162,118
|
|
|
$
|
161,272
|
|
|
1
|
%
|
|
$
|
157,958
|
|
|
$
|
155,692
|
|
|
1
|
%
|
|
|
Average Annualized Yield
|
|
Increase/
(Decrease) |
|
Average Annualized Yield
|
|
Increase/
(Decrease)
|
||||||||||
|
|
Three months ended
June 30, |
|
|
Nine months ended
June 30, |
|
||||||||||||
|
|
2016
|
|
2015
|
|
|
2016
|
|
2015
|
|
||||||||
Money market mutual fund
|
|
0.26
|
%
|
|
0.00
|
%
|
|
0.26
|
%
|
|
0.16
|
%
|
|
0.00
|
%
|
|
0.16
|
%
|
Market fee-based investment balances
|
|
0.23
|
%
|
|
0.22
|
%
|
|
0.01
|
%
|
|
0.23
|
%
|
|
0.22
|
%
|
|
0.01
|
%
|
Total investment product fees
|
|
0.23
|
%
|
|
0.21
|
%
|
|
0.02
|
%
|
|
0.23
|
%
|
|
0.21
|
%
|
|
0.02
|
%
|
|
|
Three months ended
June 30, |
|
%
Change |
|
Nine months ended
June 30, |
|
%
Change
|
||||||||||||||
|
|
2016
|
|
2015
|
|
|
2016
|
|
2015
|
|
||||||||||||
Total trades (in millions)
|
|
29.56
|
|
|
27.33
|
|
|
8
|
%
|
|
88.22
|
|
|
85.21
|
|
|
4
|
%
|
||||
Average client trades per day
|
|
461,941
|
|
|
433,759
|
|
|
6
|
%
|
|
469,262
|
|
|
455,642
|
|
|
3
|
%
|
||||
Average client trades per funded account (annualized)
|
|
17.0
|
|
|
16.7
|
|
|
2
|
%
|
|
17.6
|
|
|
17.8
|
|
|
(1
|
)%
|
||||
Activity rate—funded accounts
|
|
6.8
|
%
|
|
6.7
|
%
|
|
1
|
%
|
|
7.0
|
%
|
|
7.1
|
%
|
|
(1
|
)%
|
||||
Trading days
|
|
64.0
|
|
|
63.0
|
|
|
2
|
%
|
|
188.0
|
|
|
187.0
|
|
|
1
|
%
|
||||
Average commissions and transaction fees per trade
|
|
$
|
11.72
|
|
|
$
|
11.99
|
|
|
(2
|
)%
|
|
$
|
11.74
|
|
|
$
|
12.16
|
|
|
(3
|
)%
|
Order routing revenue (in millions)
|
|
$
|
77
|
|
|
$
|
71
|
|
|
8
|
%
|
|
$
|
223
|
|
|
$
|
223
|
|
|
0
|
%
|
Average order routing revenue per trade
(1)
|
|
$
|
2.60
|
|
|
$
|
2.59
|
|
|
0
|
%
|
|
$
|
2.53
|
|
|
$
|
2.62
|
|
|
(3
|
)%
|
|
(1)
|
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
|
||||||||||||||
|
|
2016
|
|
2015
|
|
|
2016
|
|
2015
|
|
||||||||||||
Funded accounts (beginning of period)
|
|
6,777,000
|
|
|
6,467,000
|
|
|
5
|
%
|
|
6,621,000
|
|
|
6,301,000
|
|
|
5
|
%
|
||||
Funded accounts (end of period)
|
|
6,872,000
|
|
|
6,551,000
|
|
|
5
|
%
|
|
6,872,000
|
|
|
6,551,000
|
|
|
5
|
%
|
||||
Percentage change during period
|
|
1
|
%
|
|
1
|
%
|
|
|
|
4
|
%
|
|
4
|
%
|
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Client assets (beginning of period, in billions)
|
|
$
|
711.2
|
|
|
$
|
695.3
|
|
|
2
|
%
|
|
$
|
667.4
|
|
|
$
|
653.1
|
|
|
2
|
%
|
Client assets (end of period, in billions)
|
|
$
|
736.3
|
|
|
$
|
702.3
|
|
|
5
|
%
|
|
$
|
736.3
|
|
|
$
|
702.3
|
|
|
5
|
%
|
Percentage change during period
|
|
4
|
%
|
|
1
|
%
|
|
|
|
10
|
%
|
|
8
|
%
|
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net new assets (in billions)
|
|
$
|
13.6
|
|
|
$
|
11.7
|
|
|
16
|
%
|
|
$
|
45.2
|
|
|
$
|
46.8
|
|
|
(3
|
)%
|
Net new assets annualized growth rate
|
|
8
|
%
|
|
7
|
%
|
|
|
|
9
|
%
|
|
10
|
%
|
|
|
|
|
Three months ended June 30,
|
|
%
Change |
|
Nine months ended June 30,
|
|
%
Change
|
||||||||||||||
|
|
2016
|
|
2015
|
|
|
2016
|
|
2015
|
|
||||||||||||
Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Transaction-based revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Commissions and transaction fees
|
|
$
|
347
|
|
|
$
|
328
|
|
|
6
|
%
|
|
$
|
1,035
|
|
|
$
|
1,036
|
|
|
0
|
%
|
Asset-based revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Insured deposit account fees
|
|
234
|
|
|
209
|
|
|
12
|
%
|
|
696
|
|
|
620
|
|
|
12
|
%
|
||||
Net interest revenue
|
|
143
|
|
|
156
|
|
|
(8
|
)%
|
|
444
|
|
|
467
|
|
|
(5
|
)%
|
||||
Investment product fees
|
|
96
|
|
|
85
|
|
|
13
|
%
|
|
276
|
|
|
253
|
|
|
9
|
%
|
||||
Total asset-based revenues
|
|
473
|
|
|
450
|
|
|
5
|
%
|
|
1,416
|
|
|
1,340
|
|
|
6
|
%
|
||||
Other revenues
|
|
18
|
|
|
16
|
|
|
13
|
%
|
|
46
|
|
|
39
|
|
|
18
|
%
|
||||
Net revenues
|
|
838
|
|
|
794
|
|
|
6
|
%
|
|
2,497
|
|
|
2,415
|
|
|
3
|
%
|
||||
Operating expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Employee compensation and benefits
|
|
209
|
|
|
202
|
|
|
3
|
%
|
|
617
|
|
|
608
|
|
|
1
|
%
|
||||
Clearing and execution costs
|
|
35
|
|
|
36
|
|
|
(3
|
)%
|
|
102
|
|
|
108
|
|
|
(6
|
)%
|
||||
Communications
|
|
33
|
|
|
31
|
|
|
6
|
%
|
|
99
|
|
|
92
|
|
|
8
|
%
|
||||
Occupancy and equipment costs
|
|
43
|
|
|
40
|
|
|
8
|
%
|
|
128
|
|
|
121
|
|
|
6
|
%
|
||||
Depreciation and amortization
|
|
23
|
|
|
23
|
|
|
0
|
%
|
|
67
|
|
|
69
|
|
|
(3
|
)%
|
||||
Amortization of acquired intangible assets
|
|
22
|
|
|
22
|
|
|
0
|
%
|
|
66
|
|
|
67
|
|
|
(1
|
)%
|
||||
Professional services
|
|
47
|
|
|
43
|
|
|
9
|
%
|
|
121
|
|
|
120
|
|
|
1
|
%
|
||||
Advertising
|
|
58
|
|
|
54
|
|
|
7
|
%
|
|
202
|
|
|
199
|
|
|
2
|
%
|
||||
Other
|
|
20
|
|
|
18
|
|
|
11
|
%
|
|
61
|
|
|
66
|
|
|
(8
|
)%
|
||||
Total operating expenses
|
|
490
|
|
|
469
|
|
|
4
|
%
|
|
1,463
|
|
|
1,450
|
|
|
1
|
%
|
||||
Operating income
|
|
348
|
|
|
325
|
|
|
7
|
%
|
|
1,034
|
|
|
965
|
|
|
7
|
%
|
||||
Other expense (income):
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest on borrowings
|
|
14
|
|
|
13
|
|
|
8
|
%
|
|
39
|
|
|
30
|
|
|
30
|
%
|
||||
Gain on sale of investments
|
|
—
|
|
|
(7
|
)
|
|
(100
|
)%
|
|
—
|
|
|
(7
|
)
|
|
(100
|
)%
|
||||
Other
|
|
—
|
|
|
—
|
|
|
N/A
|
|
|
—
|
|
|
1
|
|
|
(100
|
)%
|
||||
Total other expense (income)
|
|
14
|
|
|
6
|
|
|
133
|
%
|
|
39
|
|
|
24
|
|
|
63
|
%
|
||||
Pre-tax income
|
|
334
|
|
|
319
|
|
|
5
|
%
|
|
995
|
|
|
941
|
|
|
6
|
%
|
||||
Provision for income taxes
|
|
94
|
|
|
122
|
|
|
(23
|
)%
|
|
338
|
|
|
344
|
|
|
(2
|
)%
|
||||
Net income
|
|
$
|
240
|
|
|
$
|
197
|
|
|
22
|
%
|
|
$
|
657
|
|
|
$
|
597
|
|
|
10
|
%
|
Other information:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Effective income tax rate
|
|
28.1
|
%
|
|
38.2
|
%
|
|
|
|
34.0
|
%
|
|
36.6
|
%
|
|
|
||||||
Average debt outstanding
|
|
$
|
1,748
|
|
|
$
|
1,783
|
|
|
(2
|
)%
|
|
$
|
1,748
|
|
|
$
|
1,500
|
|
|
17
|
%
|
Effective interest rate incurred on borrowings
|
|
3.14
|
%
|
|
2.87
|
%
|
|
|
|
3.00
|
%
|
|
2.69
|
%
|
|
|
|
|
Net Capital
|
|
Early Warning
Threshold
|
|
Net Capital in
Excess of
Early Warning
Threshold
|
||||||
TD Ameritrade Clearing, Inc.
|
|
$
|
1,613
|
|
|
$
|
734
|
|
|
$
|
879
|
|
TD Ameritrade, Inc.
|
|
$
|
167
|
|
|
$
|
0.3
|
|
|
$
|
166
|
|
TD Ameritrade Futures & Forex LLC
|
|
$
|
110
|
|
|
$
|
24
|
|
|
$
|
86
|
|
|
|
June 30,
|
|
Sept. 30,
|
|
|
||||||
|
|
2016
|
|
2015
|
|
Change
|
||||||
Cash and cash equivalents
|
|
$
|
1,917
|
|
|
$
|
1,978
|
|
|
$
|
(61
|
)
|
Less: Non-corporate cash and cash equivalents
|
|
(1,088
|
)
|
|
(909
|
)
|
|
(179
|
)
|
|||
Corporate cash and cash equivalents
|
|
829
|
|
|
1,069
|
|
|
(240
|
)
|
|||
Corporate short-term investments
|
|
400
|
|
|
—
|
|
|
400
|
|
|||
Less: Corporate liquidity maintained for operational contingencies
|
|
(764
|
)
|
|
(750
|
)
|
|
(14
|
)
|
|||
Excess corporate cash and cash equivalents and short-term investments
|
|
465
|
|
|
319
|
|
|
146
|
|
|||
Excess broker-dealer regulatory net capital
|
|
263
|
|
|
211
|
|
|
52
|
|
|||
Liquid assets available for corporate investing and financing activities
|
|
$
|
728
|
|
|
$
|
530
|
|
|
$
|
198
|
|
Liquid assets available for corporate investing and financing activities as of September 30, 2015
|
|
$
|
530
|
|
|
|
|
||
Plus: EBITDA
(1)
|
|
1,167
|
|
|
Reduction of net capital requirements due to decrease in aggregate debits
|
|
81
|
|
|
Other changes in working capital and regulatory net capital
|
|
85
|
|
|
|
|
|
||
Less: Income taxes paid
|
|
(377
|
)
|
|
Purchase of treasury stock
|
|
(319
|
)
|
|
Payment of cash dividends
|
|
(272
|
)
|
|
Purchase of property and equipment
|
|
(78
|
)
|
|
Interest paid
|
|
(46
|
)
|
|
Purchase of treasury stock for income tax withholding on stock-based compensation
|
|
(30
|
)
|
|
Payment for future treasury stock purchases under accelerated stock repurchase agreement
|
|
(9
|
)
|
|
Change in net capital related to daily futures client cash sweep
|
|
(4
|
)
|
|
Liquid assets available for corporate investing and financing activities as of June 30, 2016
|
|
$
|
728
|
|
|
(1)
|
See "Financial Performance Metrics" earlier in this section for a description of EBITDA.
|
Description
|
|
Date Issued
|
|
Maturity Date
|
|
Aggregate Principal
|
|
Interest Rate
|
2019 Notes
|
|
November 25, 2009
|
|
December 1, 2019
|
|
$500
|
|
5.600%
|
2022 Notes
|
|
March 4, 2015
|
|
April 1, 2022
|
|
$750
|
|
2.950%
|
2025 Notes
|
|
October 17, 2014
|
|
April 1, 2025
|
|
$500
|
|
3.625%
|
Borrower Subsidiary
|
|
Committed Facility
|
|
Uncommitted Facility
(1)
|
|
Termination Date
|
TD Ameritrade Clearing, Inc.
|
|
$700
|
|
$300
|
|
March 1, 2022
|
TD Ameritrade, Inc.
|
|
$50
|
|
$300
|
|
March 1, 2022
|
TD Ameritrade Futures & Forex LLC
|
|
$13.5
|
|
N/A
|
|
March 29, 2020
|
|
(1)
|
The Parent is permitted, but under no obligation, to make loans under uncommitted facilities.
|
•
|
speculation in the investment community or the press about, or actual changes in, our competitive position, organizational structure, executive team, operations, financial condition, financial reporting and results, effectiveness of cost reduction initiatives, or strategic transactions;
|
•
|
the announcement of new products, services, acquisitions, or dispositions by us or our competitors;
|
•
|
sales of a substantial number of shares of our common stock by TD and J. Joe Ricketts, our founder, certain members of his family and trusts held for their benefit, who have registration rights covering approximately 223 million shares
and 60 million shares, respectively, of our common stock; and
|
•
|
increases or decreases in revenue or earnings, changes in earnings estimates by the investment community, changes in the interest rate environment or in market expectations regarding the interest rate environment and variations between estimated financial results and actual financial results.
|
•
|
the presence of a classified board of directors;
|
•
|
the ability of the board of directors to issue and determine the terms of preferred stock;
|
•
|
advance notice requirements for inclusion of stockholder proposals at stockholder meetings; and
|
•
|
the anti-takeover provisions of Delaware law.
|
|
|
|
|
TD Ameritrade Holding Corporation
|
||
|
(Registrant)
|
||
|
|
|
|
|
By:
|
|
/s/ FREDRIC J. TOMCZYK
|
|
|
|
Fredric J. Tomczyk
|
|
|
|
Chief Executive Officer
|
|
|
|
(Principal Executive Officer)
|
|
|
|
|
|
By:
|
|
/s/ STEPHEN J. BOYLE
|
|
|
|
Stephen J. Boyle
|
|
|
|
Executive Vice President, Chief Financial Officer
|
|
|
|
(Principal Financial and Accounting Officer)
|
Grant Date:
|
[Date]
|
Restricted Stock Units:
|
[Number]
|
Scheduled Vesting:
|
The Restricted Stock Units will vest in accordance with the schedule set forth in Appendix A and B (attached) and provisions of the Plan and this Agreement.
|
Settlement Date:
|
One Share will be issued for each Restricted Stock Unit that has vested on the Vesting Date specified in Appendix A and B (or on a date as soon as practicable, and no more than thirty (30) days, thereafter).
|
Acceptance:
|
You must accept this grant of Restricted Stock Units prior to the Acceptance Deadline, which is sixty (60) days from the Grant Date.
|
•
|
“X” is the number of whole Restricted Stock Units to be credited (which shall be rounded down to the next whole Share as no fractional Shares shall be credited pursuant to this Dividend Equivalent Right);
|
•
|
“A” is the amount of cash dividends paid by the Company to stockholders with respect to one Share;
|
•
|
“B” is the number of whole Restricted Stock Units remaining subject to this Agreement as of the cash dividend record date but immediately prior to the application of this paragraph 30; and
|
•
|
“C” is the Fair Market Value of a Share on the cash dividend payment date.
|
Grant Date:
|
[Date]
|
Total Number of Restricted Stock Units:
|
[Number]
|
Scheduled Vesting:
|
The Restricted Stock Units will vest in accordance with the schedule set forth in Appendix A and B (attached) and provisions of the Plan and this Agreement.
|
Settlement Date:
|
One Share will be issued for each Restricted Stock Unit that has vested on the date specified in Appendix B (or on a date as soon as practicable, and no more than thirty (30) days thereafter).
|
Acceptance:
|
You must accept this grant of Restricted Stock Units prior to the Acceptance Deadline, which is sixty (60) days from the Grant Date.
|
•
|
“X” is the number of whole Restricted Stock Units to be credited (which shall be rounded down to the next whole Share as no fractional Shares shall be credited pursuant to this Dividend Equivalent Right);
|
•
|
“A” is the amount of cash dividends paid by the Company to stockholders with respect to one Share;
|
•
|
“B” is the number of whole Restricted Stock Units remaining subject to this Agreement as of the cash dividend record date but immediately prior to the application of this paragraph 27; and
|
•
|
“C” is the Fair Market Value of a Share on the cash dividend payment date.
|
•
|
One hundred percent (100%) of the Restricted Stock Units shall vest on the first anniversary of 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
|
|
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/ STEPHEN J. BOYLE
|
|
Stephen J. Boyle
|
|
Executive Vice President, Chief Financial Officer
|
|
|
|
Dated:
|
August 5, 2016
|
/s/ FREDRIC J. TOMCZYK
|
|
|
Fredric J. Tomczyk
|
|
|
Chief Executive Officer
|
|
|
|
Dated:
|
August 5, 2016
|
/s/ STEPHEN J. BOYLE
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Stephen J. Boyle
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Executive Vice President,
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Chief Financial Officer
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