Company Quick10K Filing
Quick10K
Raymond James Financial
Closing Price ($) Shares Out (MM) Market Cap ($MM)
$87.26 140 $12,250
10-Q 2019-03-31 Quarter: 2019-03-31
10-Q 2018-12-31 Quarter: 2018-12-31
10-K 2018-09-30 Annual: 2018-09-30
10-Q 2018-06-30 Quarter: 2018-06-30
10-Q 2018-03-31 Quarter: 2018-03-31
10-Q 2017-12-31 Quarter: 2017-12-31
10-K 2017-09-30 Annual: 2017-09-30
10-Q 2017-08-08 Quarter: 2017-08-08
10-Q 2017-03-31 Quarter: 2017-03-31
10-Q 2016-12-31 Quarter: 2016-12-31
10-K 2016-09-30 Annual: 2016-09-30
10-Q 2016-06-30 Quarter: 2016-06-30
10-Q 2016-03-31 Quarter: 2016-03-31
10-Q 2015-12-31 Quarter: 2015-12-31
10-K 2015-09-30 Annual: 2015-09-30
10-Q 2015-06-30 Quarter: 2015-06-30
10-Q 2015-03-31 Quarter: 2015-03-31
10-Q 2014-12-31 Quarter: 2014-12-31
10-K 2014-09-30 Annual: 2014-09-30
10-Q 2014-06-30 Quarter: 2014-06-30
10-Q 2014-03-31 Quarter: 2014-03-31
10-Q 2013-12-31 Quarter: 2013-12-31
8-K 2019-06-24 Earnings, Exhibits
8-K 2019-06-21 Regulation FD, Exhibits
8-K 2019-06-19 Regulation FD, Exhibits
8-K 2019-05-22 Regulation FD, Exhibits
8-K 2019-05-22 Regulation FD, Exhibits
8-K 2019-04-24 Earnings, Exhibits
8-K 2019-04-03 Earnings, Exhibits
8-K 2019-03-20 Regulation FD, Exhibits
8-K 2019-03-18 Officers, Exhibits
8-K 2019-03-11 Earnings, Exhibits
8-K 2019-02-20 Regulation FD, Exhibits
8-K 2019-02-19 Enter Agreement, Exhibits
8-K 2019-01-23 Earnings, Exhibits
8-K 2019-01-23 Earnings, Exhibits
8-K 2018-12-19 Regulation FD, Exhibits
8-K 2018-12-14 Officers, Exhibits
8-K 2018-11-29 Officers, Exhibits
8-K 2018-11-28 Officers, Exhibits
8-K 2018-11-20 Regulation FD, Exhibits
8-K 2018-11-09 Regulation FD, Exhibits
8-K 2018-10-24 Earnings, Exhibits
8-K 2018-10-04 Officers, Exhibits
8-K 2018-09-19 Regulation FD, Exhibits
8-K 2018-09-13 Earnings, Exhibits
8-K 2018-08-28 Regulation FD, Exhibits
8-K 2018-08-22 Regulation FD, Exhibits
8-K 2018-08-22 Regulation FD, Exhibits
8-K 2018-07-25 Earnings, Exhibits
8-K 2018-06-28 Regulation FD, Exhibits
8-K 2018-06-20 Regulation FD, Exhibits
8-K 2018-06-14 Regulation FD, Exhibits
8-K 2018-06-07 Earnings, Exhibits
8-K 2018-05-23 Regulation FD, Exhibits
8-K 2018-05-22 Regulation FD, Other Events, Exhibits
8-K 2018-04-25 Earnings, Exhibits
8-K 2018-04-16 Officers, Exhibits
8-K 2018-03-21 Regulation FD, Exhibits
8-K 2018-03-14 Earnings, Exhibits
8-K 2018-02-25 Officers, Exhibits
8-K 2018-02-22 Shareholder Vote, Regulation FD, Exhibits
8-K 2018-02-21 Regulation FD, Exhibits
8-K 2018-01-24 Earnings, Exhibits
8-K 2018-01-11 Other Events
ZTS Zoetis 48,660
ETN Eaton 34,250
WRLD World Acceptance 1,370
AGX Argan 752
VRS Verso 747
MTW Manitowoc 622
WLFC Willis Lease Finance 322
CNCL Cancer Capital 0
NSM Nationstar 0
SKVI Skinvisible 0
RJF 2019-03-31
Part I. Financial Information
Item 1. Financial Statements
Note 1 - Organization and Basis of Presentation
Note 2 - Update of Significant Accounting Policies
Note 3 - Fair Value
Note 4 - Available-For-Sale Securities
Note 5 - Derivative Assets and Derivative Liabilities
Note 6 - Collateralized Agreements and Financings
Note 7 - Bank Loans, Net
Note 8 - Variable Interest Entities
Note 9 - Goodwill and Identifiable Intangible Assets, Net
Note 10 - Bank Deposits
Note 11 - Other Borrowings
Note 12 - Income Taxes
Note 13 - Commitments, Contingencies and Guarantees
Note 14 - Accumulated Other Comprehensive Income/(Loss)
Note 15 - Revenues
Note 16 - Interest Income and Interest Expense
Note 17 - Share-Based Compensation
Note 18 - Regulatory Capital Requirements
Note 19 - Earnings per Share
Note 20 - Segment Information
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations
Item 3. Quantitative and Qualitative Disclosures About Market Risk
Item 4. Controls and Procedures
Part II. Other Information
Item 1. Legal Proceedings
Item 1A. Risk Factors
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
Item 3. Defaults Upon Senior Securities
Item 4. Mine Safety Disclosures
Item 5. Other Information
Item 6. Exhibits
EX-31.1 ex311_20190331-10qrjf.htm
EX-31.2 ex312_20190331-10qrjf.htm
EX-32 ex32_20190331-10qrjf.htm

Raymond James Financial Earnings 2019-03-31

RJF 10Q Quarterly Report

Balance SheetIncome StatementCash Flow

10-Q 1 rjf-2019033110q.htm 10-Q Document


UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
(Mark one)
x
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF
 
THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended March 31, 2019
or
¨
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF
 
THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from
 
to
 
Commission File Number: 1-9109
RAYMOND JAMES FINANCIAL, INC.
(Exact name of registrant as specified in its charter)
Florida
 
No. 59-1517485
(State or other jurisdiction of incorporation or organization)
 
(I.R.S. Employer Identification No.)
 
 
 
880 Carillon Parkway, St. Petersburg, Florida 33716
(Address of principal executive offices)    (Zip Code)
(727) 567-1000
(Registrant’s telephone number, including area code)
None
(Former name, former address and former fiscal year, if changed since last report)
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.   Yes x No ¨
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or such shorter period that the registrant was required to submit such files). Yes x No ¨
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company.  See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
Large accelerated filer x
 
Accelerated filer o
Non-accelerated filer o
 
Smaller reporting company o
 
 
Emerging growth company o
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).
Yes ¨                               No x
Securities registered pursuant to Section 12(b) of the Exchange Act:
Title of each class
Trading Symbol(s)
Name of each exchange on which registered
Common Stock, $.01 par value
RJF
New York Stock Exchange
Indicate the number of shares outstanding of each of the registrant’s classes of common stock, as of the latest practicable date.
140,805,319 shares of common stock as of May 8, 2019



INDEX
 
 
 
PAGE
PART I
 
 
Item 1.
 
 
 
Condensed Consolidated Statements of Financial Condition as of March 31, 2019 and September 30, 2018 (Unaudited)
 
 
Condensed Consolidated Statements of Income and Comprehensive Income for the three and six months ended March 31, 2019 and March 31, 2018 (Unaudited)
 
 
Condensed Consolidated Statements of Changes in Shareholders’ Equity for the three and six months ended March 31, 2019 and March 31, 2018 (Unaudited)
 
 
Condensed Consolidated Statements of Cash Flows for the six months ended March 31, 2019 and March 31, 2018 (Unaudited)
 
 
 
 
 
Note 1 - Organization and basis of presentation
 
 
Note 2 - Update of significant accounting policies
 
 
Note 3 - Fair value
 
 
Note 4 - Available-for-sale securities
 
 
Note 5 - Derivative assets and derivative liabilities
 
 
Note 6 - Collateralized agreements and financings
 
 
Note 7 - Bank loans, net
 
 
Note 8 - Variable interest entities
 
 
Note 9 - Goodwill and identifiable intangible assets, net
 
 
Note 10 - Bank deposits
 
 
Note 11 - Other borrowings
 
 
Note 12 - Income taxes
 
 
Note 13 - Commitments, contingencies and guarantees
 
 
Note 14 - Accumulated other comprehensive income/(loss)
 
 
Note 15 - Revenues
 
 
Note 16 - Interest income and interest expense
 
 
Note 17 - Share-based compensation
 
 
Note 18 - Regulatory capital requirements
 
 
Note 19 - Earnings per share
 
 
Note 20 - Segment information
Item 2.
 
Item 3.
 
Item 4.
 
PART II
 
 
Item 1.
 
Item 1A.
 
Item 2.
 
Unregistered Sales of Equity Securities and Use of Proceeds
Item 3.
 
Item 4.
 
Mine Safety Disclosures
Item 5.
 
Item 6.
 
 
 


2


PART I. FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
RAYMOND JAMES FINANCIAL, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
(Unaudited)
$ in millions, except per share amounts
 
March 31, 2019
 
September 30, 2018
Assets:
 

 

Cash and cash equivalents
 
$
3,831

 
$
3,500

Cash segregated pursuant to regulations
 
2,288

 
2,441

Securities purchased under agreements to resell
 
447

 
373

Securities borrowed
 
224

 
255

Financial instruments, at fair value:
 
 
 
 
Trading instruments (includes $521 and $465 pledged as collateral)
 
819

 
702

Available-for-sale securities (includes $17 and $20 pledged as collateral)
 
2,893

 
2,696

Derivative assets
 
251

 
180

Private equity investments
 
144

 
147

Other investments (includes $25 and $25 pledged as collateral)
 
258

 
202

Brokerage client receivables, net
 
2,769

 
3,343

Receivables from brokers, dealers and clearing organizations
 
299

 
257

Other receivables
 
535

 
592

Bank loans, net
 
20,135

 
19,518

Loans to financial advisors, net
 
913

 
925

Investments in real estate partnerships held by consolidated variable interest entities
 
88

 
107

Property and equipment, net
 
498

 
486

Deferred income taxes, net
 
188

 
203

Goodwill and identifiable intangible assets, net
 
630

 
639

Other assets
 
966

 
847

Total assets
 
$
38,176

 
$
37,413

 
 
 
 
 
Liabilities and equity:
 
 
 
 
Bank deposits
 
$
21,618

 
$
19,942

Securities sold under agreements to repurchase
 
210

 
186

Securities loaned
 
710

 
423

Financial instruments sold but not yet purchased, at fair value:
 
 
 
 
Trading instruments
 
321

 
235

Derivative liabilities
 
247

 
247

Brokerage client payables
 
4,467

 
5,625

Payables to brokers, dealers and clearing organizations
 
208

 
206

Accrued compensation, commissions and benefits
 
959

 
1,189

Other payables
 
555

 
459

Other borrowings
 
896

 
899

Senior notes payable
 
1,550

 
1,550

Total liabilities
 
31,741


30,961

Commitments and contingencies (see Note 13)
 


 


Equity
 
 
 
 
Preferred stock; $.10 par value; 10,000,000 shares authorized; -0- shares issued and outstanding
 

 

Common stock; $.01 par value; 350,000,000 shares authorized; 158,086,495 and 156,363,615 shares issued as of March 31, 2019 and September 30, 2018, respectively, and 140,439,495 and 145,642,437 shares outstanding as of March 31, 2019 and September 30, 2018, respectively
 
2

 
2

Additional paid-in capital
 
1,917

 
1,808

Retained earnings
 
5,448

 
5,032

Treasury stock, at cost; 17,647,000 and 10,693,026 common shares as of March 31, 2019 and September 30, 2018, respectively
 
(976
)
 
(447
)
Accumulated other comprehensive loss
 
(25
)
 
(27
)
Total equity attributable to Raymond James Financial, Inc.
 
6,366

 
6,368

Noncontrolling interests
 
69

 
84

Total equity
 
6,435

 
6,452

Total liabilities and equity
 
$
38,176

 
$
37,413


See accompanying Notes to Condensed Consolidated Financial Statements (Unaudited).
3


RAYMOND JAMES FINANCIAL, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME
(Unaudited)
 
 
Three months ended March 31,
 
Six months ended March 31,
in millions, except per share amounts
 
2019
 
2018
 
2019
 
2018
Revenues:
 
 
 
 
 
 
 
 
Asset management and related administrative fees
 
$
783

 
$
768

 
$
1,648

 
$
1,497

Brokerage revenues:
 
 
 
 
 
 
 
 
Securities commissions
 
349

 
425

 
737

 
841

Principal transactions
 
93

 
85

 
169

 
182

Total brokerage revenues
 
442

 
510

 
906

 
1,023

Account and service fees
 
191

 
177

 
376

 
348

Investment banking
 
163

 
116

 
300

 
204

Interest income
 
324

 
249

 
640

 
481

Other
 
31

 
37

 
68

 
70

Total revenues
 
1,934

 
1,857


3,938


3,623

Interest expense
 
(75
)
 
(45
)
 
(148
)
 
(85
)
Net revenues
 
1,859

 
1,812


3,790


3,538

Non-interest expenses:
 
 

 
 

 
 
 
 
Compensation, commissions and benefits
 
1,225

 
1,196

 
2,490

 
2,349

Communications and information processing
 
94

 
93

 
186

 
173

Occupancy and equipment costs
 
53

 
50

 
104

 
100

Business development
 
41

 
43

 
84

 
77

Investment sub-advisory fees
 
22

 
23

 
46

 
45

Professional fees
 
17

 
16

 
39

 
28

Bank loan loss provision
 
5

 
8

 
21

 
9

Acquisition and disposition-related expenses
 

 

 
15

 
4

Other
 
67

 
51

 
140

 
110

Total non-interest expenses
 
1,524

 
1,480


3,125


2,895

Income including noncontrolling interests and before provision for income taxes
 
335

 
332


665


643

Provision for income taxes
 
86

 
89

 
169

 
281

Net income including noncontrolling interests
 
249

 
243


496


362

Net loss attributable to noncontrolling interests
 
(12
)
 

 
(14
)
 

Net income attributable to Raymond James Financial, Inc.
 
$
261

 
$
243


$
510


$
362

 
 
 
 
 
 
 
 
 
Earnings per common share – basic
 
$
1.85

 
$
1.67

 
$
3.58

 
$
2.49

Earnings per common share – diluted
 
$
1.81

 
$
1.63

 
$
3.51

 
$
2.43

Weighted-average common shares outstanding – basic
 
140.8

 
145.4

 
142.5

 
144.9

Weighted-average common and common equivalent shares outstanding – diluted
 
143.9

 
149.0

 
145.4

 
148.5

 
 
 
 
 
 
 
 
 
Net income attributable to Raymond James Financial, Inc.
 
$
261

 
$
243


$
510


$
362

Other comprehensive income/(loss), net of tax:
 
 

 
 

 
 
 
 
Available-for-sale securities
 
19

 
(15
)
 
41

 
(27
)
Currency translations, net of the impact of net investment hedges
 
8

 
(2
)
 
(5
)
 
(2
)
Cash flow hedges
 
(13
)
 
14

 
(30
)
 
21

Total comprehensive income
 
$
275

 
$
240


$
516


$
354

 












See accompanying Notes to Condensed Consolidated Financial Statements (Unaudited).
4


RAYMOND JAMES FINANCIAL, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY
(Unaudited)
 
 
Three months ended March 31,
 
Six months ended March 31,
$ in millions, except per share amounts
 
2019
 
2018
 
2019
 
2018
Common stock, par value $.01 per share:
 
 
 
 
 
 
 
 
Balance beginning of period
 
$
2

 
$
2

 
$
2

 
$
2

Share issuances
 

  

 

 

Balance end of period
 
2

 
2


2


2

 
 
 
 
 
 
 
 
 
Additional paid-in capital:
 
 

 
 

 
 
 
 
Balance beginning of period
 
1,871

  
1,705

 
1,808

 
1,645

Employee stock purchases
 
12

  
10

 
20

 
16

Exercise of stock options and vesting of restricted stock units, net of forfeitures
 
9

  
9

 
25

 
30

Restricted stock, stock option and restricted stock unit expense
 
25

  
23

 
64

 
56

Other
 

  
1

 

 
1

Balance end of period
 
1,917

 
1,748


1,917


1,748

 
 
 
 
 
 
 
 
 
Retained earnings:
 
 

 
 

 
 
 
 
Balance beginning of period
 
5,236

  
4,420

 
5,032

 
4,340

Net income attributable to Raymond James Financial, Inc.
 
261

  
243

 
510

 
362

Cash dividends declared (see Note 19)
 
(49
)
 
(36
)
 
(99
)
 
(75
)
Other
 

 
(1
)
 
5

 
(1
)
Balance end of period
 
5,448

 
4,626

 
5,448

 
4,626

 
 
 
 
 
 
 
 
 
Treasury stock:
 
 

 
 

 
 
 
 
Balance beginning of period
 
(927
)
 
(410
)
 
(447
)
 
(390
)
Purchases/surrenders
 
(48
)
 
(1
)
 
(512
)
 
(8
)
Exercise of stock options and vesting of restricted stock units, net of forfeitures
 
(1
)
 
(1
)
 
(17
)
 
(14
)
Balance end of period
 
(976
)
 
(412
)
 
(976
)
 
(412
)
 
 
 
 
 
 
 
 
 
Accumulated other comprehensive loss:
 
 

 
 

 
 
 
 
Balance beginning of period
 
(39
)
 
(20
)
 
(27
)
 
(15
)
Net change in unrealized loss on available-for-sale securities, net of tax
 
19

 
(15
)
 
41

 
(27
)
Net change in unrealized loss on currency translations, net of the impact of net investment hedges, net of tax
 
8

 
(2
)
 
(5
)
 
(2
)
Net change in unrealized gain on cash flow hedges, net of tax
 
(13
)
 
14

 
(30
)
 
21

Other
 

 

 
(4
)
 

Balance end of period
 
(25
)
 
(23
)
 
(25
)
 
(23
)
Total equity attributable to Raymond James Financial, Inc.
 
$
6,366


$
5,941

 
$
6,366

 
$
5,941

 
 
 
 
 
 
 
 
 
Noncontrolling interests:
 
 

 
 

 
 
 
 
Balance beginning of period
 
$
82

 
$
106

 
$
84

 
$
112

Net loss attributable to noncontrolling interests
 
(12
)
 

 
(14
)
 

Capital contributions
 

 

 
2

 

Distributions
 
(1
)
 
(5
)
 
(3
)
 
(11
)
Balance end of period
 
69

 
101

 
69

 
101

Total equity
 
$
6,435

 
$
6,042

 
$
6,435

 
$
6,042












See accompanying Notes to Condensed Consolidated Financial Statements (Unaudited).
5


RAYMOND JAMES FINANCIAL, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
 
 
Six months ended March 31,
$ in millions
 
2019
 
2018
Cash flows from operating activities:
 
 
 
 
Net income attributable to Raymond James Financial, Inc.
 
$
510

 
$
362

Net loss attributable to noncontrolling interests
 
(14
)
 

Net income including noncontrolling interests
 
496

 
362

Adjustments to reconcile net income including noncontrolling interests to net cash provided by operating activities:
 
 

 
 

Depreciation and amortization
 
53

 
47

Deferred income taxes
 
(1
)
 
105

Premium and discount amortization on available-for-sale securities and (gain)/loss on other investments
 
7

 
(5
)
Provisions for loan losses, legal and regulatory proceedings and bad debts
 
38

 
14

Share-based compensation expense
 
65

 
56

Unrealized (gain)/loss on company-owned life insurance policies, net of expenses
 
8

 
(15
)
Other
 
41

 
14

Net change in:
 
 

 
 

Securities purchased under agreements to resell, net of securities sold under agreements to repurchase
 
(53
)
 
(124
)
Securities borrowed, net of securities loaned
 
319

 
(105
)
Loans provided to financial advisors, net of repayments
 
1

 
(21
)
Brokerage client receivables and other accounts receivable, net
 
587

 
(127
)
Trading instruments, net
 
(36
)
 
(166
)
Derivative instruments, net
 
(93
)
 
46

Other assets
 
(118
)
 
(49
)
Brokerage client payables and other accounts payable
 
(1,088
)
 
770

Accrued compensation, commissions and benefits
 
(229
)
 
(157
)
Proceeds from sales of securitizations and loans held for sale, net of purchases and originations of loans held for sale
 
23

 
(39
)
Net cash provided by operating activities
 
20

 
606

 
 
 
 
 
Cash flows from investing activities:
 
 

 
 

Additions to property and equipment
 
(59
)
 
(70
)
Increase in bank loans, net
 
(779
)
 
(1,238
)
Proceeds from sales of loans held for investment
 
184

 
91

Purchases of available-for-sale securities
 
(509
)
 
(655
)
Available-for-sale securities maturations, repayments and redemptions
 
295

 
234

Business acquisition, net of cash acquired
 

 
(159
)
Other investing activities, net
 
(42
)
 
(18
)
Net cash used in investing activities
 
(910
)
 
(1,815
)
 
 
 
 
 
 
 
 
 
 
(continued on next page)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

See accompanying Notes to Condensed Consolidated Financial Statements (Unaudited).
6


RAYMOND JAMES FINANCIAL, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
(continued from previous page)
 
 
Six months ended March 31,
$ in millions
 
2019
 
2018
Cash flows from financing activities:
 
 
 
 
Proceeds from borrowings on the RJF Credit Facility
 
300

 
300

Repayment of borrowings on the RJF Credit Facility
 
(300
)
 
(300
)
Repayments of short-term borrowings, net
 

 
(610
)
Repayments of other borrowed funds
 
(3
)
 
(2
)
Exercise of stock options and employee stock purchases
 
43

 
44

Increase in bank deposits
 
1,676

 
980

Purchases of treasury stock
 
(521
)
 
(23
)
Dividends on common stock
 
(95
)
 
(71
)
Distributions to noncontrolling interests, net
 
(1
)
 
(6
)
Net cash provided by financing activities
 
1,099

 
312

 
 
 
 
 
Currency adjustment:
 
 

 
 

Effect of exchange rate changes on cash
 
(31
)
 
(30
)
Net increase/(decrease) in cash, cash equivalents, and cash segregated pursuant to regulations
 
178

 
(927
)
Cash, cash equivalents, and cash segregated pursuant to regulations at beginning of year
 
5,941

 
7,146

Cash, cash equivalents, and cash segregated pursuant to regulations at end of period
 
$
6,119

 
$
6,219

 
 
 
 
 
Cash and cash equivalents
 
$
3,831

 
$
3,140

Cash segregated pursuant to regulations
 
2,288

 
3,079

Total cash, cash equivalents, and cash segregated pursuant to regulations at end of period
 
$
6,119

 
$
6,219

 
 
 
 
 
Supplemental disclosures of cash flow information:
 
 

 
 

Cash paid for interest
 
$
147

 
$
84

Cash paid for income taxes, net
 
$
188

 
$
83























See accompanying Notes to Condensed Consolidated Financial Statements (Unaudited).
7


RAYMOND JAMES FINANCIAL, INC. AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
March 31, 2019

NOTE 1 – ORGANIZATION AND BASIS OF PRESENTATION

Organization

Raymond James Financial, Inc. (“RJF,” the “firm” or the “Company”) is a financial holding company which, together with its subsidiaries, is engaged in various financial services activities, including providing investment management services for retail and institutional clients, the underwriting, distribution, trading and brokerage of equity and debt securities and the sale of mutual funds and other investment products.  The firm also provides corporate and retail banking services, and trust services.  For further information about our business segments, see Note 20 of this Form 10-Q. As used herein, the terms “our,” “we,” or “us” refer to RJF and/or one or more of its subsidiaries.

Basis of presentation

The accompanying unaudited condensed consolidated financial statements include the accounts of RJF and its consolidated subsidiaries that are generally controlled through a majority voting interest. We consolidate all of our 100% owned subsidiaries. In addition, we consolidate any variable interest entity (“VIE”) in which we are the primary beneficiary. Additional information on these VIEs is provided in Note 2 of our Annual Report on Form 10-K (the “2018 Form 10-K”) for the year ended September 30, 2018, as filed with the United States (“U.S.”) Securities and Exchange Commission (“SEC”) and in Note 8 of this Form 10-Q. When we do not have a controlling interest in an entity, but we exert significant influence over the entity, we apply the equity method of accounting. All material intercompany balances and transactions have been eliminated in consolidation.

Accounting estimates and assumptions

Certain financial information that is normally included in annual financial statements prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) but is not required for interim reporting purposes has been condensed or omitted. These unaudited condensed consolidated financial statements reflect, in the opinion of management, all adjustments necessary for a fair presentation of our consolidated financial position and results of operations for the periods presented.

The nature of our business is such that the results of any interim period are not necessarily indicative of results for a full year. These unaudited condensed consolidated financial statements should be read in conjunction with Management’s Discussion and Analysis of Financial Condition and Results of Operations and the consolidated financial statements and notes thereto included in our 2018 Form 10-K. To prepare condensed consolidated financial statements in conformity with GAAP, we must make certain estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements, and the reported amounts of revenues and expenses for the reporting period. Actual results could differ from those estimates and could have a material impact on the condensed consolidated financial statements.

Reclassifications

Effective with the firm’s first fiscal quarter ended December 31, 2018, we have reclassified certain revenues among income statement line items and renamed certain line items. These reclassifications do not affect the Company’s reported total revenues or the total revenues in any of our segments for any of the previously reported periods. Prior period results have been conformed to the current presentation.

In addition to the reclassifications discussed above, certain other prior period amounts have been reclassified to conform to the current period’s presentation.



8

Notes to Condensed Consolidated Financial Statements (Unaudited)





NOTE 2 – UPDATE OF SIGNIFICANT ACCOUNTING POLICIES

A summary of our significant accounting policies is included in Note 2 of our 2018 Form 10-K. During the six months ended March 31, 2019, there were no significant changes to our significant accounting policies other than the accounting policies adopted or modified as part of our implementation of new or amended accounting guidance, as noted below.

Loans to financial advisors, net

We offer loans to financial advisors and certain other key revenue producers, primarily for recruiting, transitional cost assistance, and retention purposes. We present the outstanding balance of loans to financial advisors on our Condensed Consolidated Statements of Financial Condition, net of the allowance for doubtful accounts. Of the gross balance outstanding, the portion associated with financial advisors who are no longer affiliated with us was $22 million and $20 million at March 31, 2019 and September 30, 2018, respectively. Our allowance for doubtful accounts was $9 million and $8 million at March 31, 2019 and September 30, 2018, respectively.

Recent accounting developments

Accounting guidance recently adopted

Goodwill - In January 2017, the FASB issued amended guidance to simplify the subsequent measurement of goodwill, eliminating “Step 2” from the goodwill impairment test (ASU 2017-04). Under this amended guidance, an entity should perform its annual, or interim, goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount and subsequently recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value; however, the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. We early-adopted this guidance on January 1, 2019, our goodwill impairment test date. The adoption did not have any impact on our financial position or results of operations.

Revenue recognition - In May 2014, the FASB issued new guidance related to revenue recognition (ASU 2014-09). The new guidance is a comprehensive new revenue recognition model that requires a company to recognize revenue to depict the transfer of goods or services to a customer at an amount that reflects the consideration it expects to receive in exchange for those goods or services. It also provides guidance on accounting for certain contract costs and requires additional disclosures. We adopted this guidance as of October 1, 2018, under a modified retrospective approach for all open contracts as of the date of initial adoption. As such, there was no impact on our prior period results.

The primary impact of this guidance was the change in the presentation of certain costs from a net presentation within revenues to a gross presentation, particularly costs related to merger & acquisitions advisory and underwriting transactions and certain administrative costs related to our multi-bank sweep program.  These presentation changes had no impact on our net earnings.  There were no material changes in timing of revenues recognized associated with the adoption. As a result, adoption of this guidance had no material impact on our net results of operations or financial position. See Note 15 for further information.

Financial instruments - In January 2016, the FASB issued new guidance related to the accounting for financial instruments (ASU 2016-01). Among its provisions, this new guidance generally requires equity investments to be measured at fair value with changes in fair value recognized in net income, subject to certain exceptions, and amends certain disclosure requirements associated with the fair value of financial instruments. We adopted this guidance as of October 1, 2018, under a modified retrospective approach. As a result, on a prospective basis beginning as of the date of adoption, we record changes in the fair value of our investments in equity securities that were previously classified as available-for-sale in net income. Previously, such unrealized gains/(losses) were reflected in other comprehensive income/(loss) (“OCI”). The impact of adopting the new guidance resulted in a reclassification from accumulated other comprehensive income/(loss) (“AOCI”) to retained earnings of an accumulated gain of approximately $4 million at October 1, 2018. See Note 4 for further information.

Statement of Cash Flows (classification of certain cash receipts and cash payments) - In August 2016, the FASB issued amended guidance related to the Statement of Cash Flows (ASU 2016-15). The amended guidance provides guidance on disclosure and classification of certain items within the statements of cash flows. We adopted this guidance on October 1, 2018, under a retrospective approach. The adoption did not have a material impact on our consolidated statements of cash flows and did not have an impact on our financial position or results of operations.


9

Notes to Condensed Consolidated Financial Statements (Unaudited)





Statement of Cash Flows (restricted cash) - In November 2016, the FASB issued new guidance related to the classification and presentation of changes in restricted cash on the statement of cash flows (ASU 2016-18). The guidance requires an entity to include restricted cash and cash equivalents in its total of cash and cash equivalents on its statement of cash flows and to present a reconciliation of the beginning-of-period and end-of-period total of such amounts on the statement of cash flows. We adopted this guidance on October 1, 2018, under a retrospective approach. As a result of adoption, we recorded a decrease of $381 million in net cash provided by operating activities for the six months ended March 31, 2018 related to reclassifying changes in cash segregated pursuant to regulations from operating activities to the cash and cash equivalents balance in the Condensed Consolidated Statements of Cash Flows. The total of cash segregated pursuant to regulations and cash and cash equivalents is included in a separate table in the Condensed Consolidated Statements of Cash Flows. The adoption did not have an impact on our financial position or results of operations.

Definition of a business - In January 2017, the FASB issued amended guidance related to the definition of a business (ASU 2017-01). This amended guidance clarifies the definition of a business with the objective of adding guidance to assist entities with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. We adopted this guidance on October 1, 2018, on a prospective basis. The impact of the adoption of this amended guidance is dependent upon acquisition and disposal activities subsequent to the date of adoption. The adoption did not have any impact on our financial position or results of operations.

Share-based payment awards (modifications) - In May 2017, the FASB issued amended guidance that clarifies when changes to the terms or conditions of share-based payment awards require an entity to apply modification accounting (ASU 2017-09). The amended guidance states an entity should account for the effects of a modification unless certain criteria are met which include that the modified award has the same fair value, vesting conditions and classification as the original award. We adopted the guidance on October 1, 2018, on a prospective basis. We generally do not modify our share-based payments awards. The adoption did not have an impact on our financial position or results of operations.

Share-based payment awards (nonemployee) - In June 2018, the FASB issued amended guidance that aligns the measurement and classification guidance for share-based payments to nonemployees with the guidance for share-based payments to employees, with certain exceptions (ASU 2018-07). The amended guidance states an entity should measure the fair value of the award by estimating the fair value of the equity instruments to be issued and, for equity-classified awards, the fair value should be measured on the grant date. The amended guidance also clarifies that nonemployee awards that contain a performance condition are to be measured based on the outcome that is probable and that entities may elect, on an award-by-award basis, to use the expected term or contractual term to measure the award. We early-adopted this standard on October 1, 2018, using a modified retrospective approach. The adoption did not have a significant impact on our financial position or results of operations.

Accounting guidance not yet adopted as of March 31, 2019

Lease accounting - In February 2016, the FASB issued new guidance related to the accounting for leases (ASU 2016-02). The new guidance requires the recognition of assets and liabilities on the balance sheet related to the rights and obligations created by lease agreements with terms greater than twelve months, regardless of whether they are classified as finance or operating leases. Consistent with current guidance, the recognition, measurement and presentation of expenses and cash flows arising from a lease will primarily depend upon its classification as a finance or operating lease. The new guidance requires new disclosures to help financial statement users better understand the amount, timing and cash flows arising from leases. This new guidance, including subsequent amendments, is first effective for our fiscal year beginning on October 1, 2019. Although permitted, we do not plan to early adopt. Upon adoption, we will use a modified retrospective approach, with a cumulative effect adjustment to opening retained earnings. Our implementation efforts include reviewing existing leases and service contracts, which may include embedded leases. We are in the process of identifying changes to our business processes, systems and controls to support adoption of the new guidance. This new guidance will increase both our assets and liabilities on our statement of financial condition. We are evaluating the magnitude of such impact. We do not expect a material impact on our results of operations.

Credit losses - In June 2016, the FASB issued new guidance related to the measurement of credit losses on financial instruments (ASU 2016-13). The amended guidance involves several aspects of the accounting for credit losses related to certain financial instruments including assets measured at amortized cost, available-for-sale debt securities and certain off-balance sheet commitments. The new guidance, and subsequent updates, broadens the information that an entity must consider in developing its estimated credit losses expected to occur over the remaining life of assets measured either collectively or individually to include historical experience, current conditions and reasonable and supportable forecasts, replacing the existing incurred credit loss model and other models with the Current Expected Credit Losses (“CECL”) model.  The new guidance expands the disclosure requirements regarding an entity’s assumptions, models, and methods for estimating credit losses and requires new disclosures of the amortized cost balance for each class of financial asset by credit quality indicator, disaggregated by the year of origination. This new guidance is first effective for our fiscal year beginning on October 1, 2020 and will be adopted under a modified retrospective approach. Early adoption is permitted although not prior to our fiscal year beginning on October 1, 2019. We have continued with our implementation and evaluation efforts, which

10

Notes to Condensed Consolidated Financial Statements (Unaudited)





include a cross-functional team to assess the required changes to our credit loss estimation methodologies and systems, as well as the determination of additional data and resources required to comply with the new guidance. We are evaluating the impact the adoption of this new guidance will have on our financial position and results of operations, which will depend on, among other things, the current and expected macroeconomic conditions and the nature and characteristics of financial assets held by us on the date of adoption.

Callable debt securities - In March 2017, the FASB issued new guidance that requires certain premiums on callable debt securities to be amortized to the earliest call date instead of the contractual life of the security (ASU 2017-08). Discounts on callable debt securities will continue to be amortized to the contractual maturity date. This guidance is first effective for our fiscal year beginning on October 1, 2019 and will be adopted using a modified retrospective approach. Although permitted, we do not plan to early adopt. We are evaluating the impact the adoption of this new guidance will have on our financial position and results of operations.

Internal use software (cloud computing) - In August 2018, the FASB issued guidance on the accounting for implementation costs incurred by customers in cloud computing arrangements (ASU 2018-15). This guidance requires implementation costs incurred by customers in cloud computing arrangements to be deferred over the non-cancellable term of the cloud computing arrangements plus any optional renewal periods (1) that are reasonably certain to be exercised by the customer or (2) for which exercise of the renewal option is controlled by the cloud service provider. This amended guidance is first effective for our fiscal year beginning on October 1, 2020 with early adoption permitted. The guidance may be adopted either using the prospective or retrospective approach. We are currently evaluating the impact of this new guidance on our financial position and results of operations.

Derivatives and hedging (interest rate) - In October 2018, the FASB issued guidance amending Derivatives and Hedging (Topic 815) to add the overnight index swap (OIS rate) rate based on the Secured Overnight Financing Rate (SOFR) to the list of US benchmark interest rates that are eligible to be hedged (ASU 2018-16). This guidance is first effective for our fiscal year beginning on October 1, 2019. Early adoption is permitted. We are evaluating the impact the adoption of this new guidance will have on our financial position and results of operations.

Consolidation (decision making fees) - In October 2018, the FASB issued guidance on how all entities evaluate decision-making fees under the variable interest entity guidance (ASU 2018-17). Under the new guidance, to determine whether decision-making fees represent a variable interest, an entity considers indirect interests held through related parties under common control on a proportionate basis, rather than in their entirety. This guidance is first effective for our fiscal year beginning on October 1, 2020. Early adoption is permitted. We are evaluating the impact the adoption of this new guidance will have on our financial position and results of operations.



11

Notes to Condensed Consolidated Financial Statements (Unaudited)





NOTE 3 – FAIR VALUE

Our “Financial instruments owned” and “Financial instruments sold but not yet purchased” on our Condensed Consolidated Statements of Financial Condition are recorded at fair value under GAAP. For further information about such instruments and our significant accounting policies related to fair value, see Note 2 and Note 4 of our 2018 Form 10-K. The following tables present assets and liabilities measured at fair value on a recurring basis. Netting adjustments represent the impact of counterparty and collateral netting on our derivative balances included on our Condensed Consolidated Statements of Financial Condition. See Note 5 for additional information.
$ in millions
 
Level 1
 
Level 2
 
Level 3
 
Netting
adjustments
 
Balance as of
March 31,
2019
Assets at fair value on a recurring basis:
 
 
 
 
 
 
 
 
 
 
Trading instruments
 
 
 
 
 
 
 
 
 
 
Municipal and provincial obligations
 
$

 
$
269

 
$

 
$

 
$
269

Corporate obligations
 
20

 
112

 

 

 
132

Government and agency obligations
 
20

 
113

 

 

 
133

Agency mortgage-backed securities (“MBS”) and collateralized mortgage obligations (“CMOs”)
 

 
163

 

 

 
163

Non-agency CMOs and asset-backed securities (“ABS”)
 

 
83

 

 

 
83

Total debt securities
 
40


740

 

 

 
780

Equity securities
 
19

 
1

 

 

 
20

Brokered certificates of deposit
 

 
17

 

 

 
17

Other
 

 

 
2

 

 
2

Total trading instruments
 
59

 
758

 
2

 

 
819

Available-for-sale securities - agency MBS and CMOs
 

 
2,893

 

 

 
2,893

Derivative assets
 
 
 
 
 
 
 
 
 
 
Interest rate - Matched book
 

 
210

 

 

 
210

Interest rate - Other
 
6

 
76

 

 
(41
)
 
41

Total derivative assets
 
6

 
286

 

 
(41
)
 
251

Private equity investments - not measured at net asset value (“NAV”)
 

 

 
59

 

 
59

Other investments
 
190

 
1

 
67

 

 
258

Subtotal
 
255

 
3,938

 
128

 
(41
)
 
4,280

Private equity investments - measured at NAV
 
 
 
 
 
 
 
 
 
85

Total assets at fair value on a recurring basis
 
$
255


$
3,938


$
128


$
(41
)

$
4,365

 
 
 
 
 
 
 
 
 
 
 
Liabilities at fair value on a recurring basis:
 
 
 
 
 
 
 
 
 
 
Trading instruments sold but not yet purchased
 
 
 
 
 
 
 
 
 
 
Municipal and provincial obligations
 
$

 
$
1

 
$

 
$

 
$
1

Corporate obligations
 
3

 
38

 

 

 
41

Government and agency obligations
 
262

 

 

 

 
262

Agency MBS and CMOs
 

 

 

 

 

Total debt securities
 
265

 
39

 

 

 
304

Equity securities
 
10

 

 

 

 
10

Other
 

 

 
7

 

 
7

Total trading instruments sold but not yet purchased
 
275

 
39

 
7

 

 
321

Derivative liabilities
 
 
 
 
 
 
 
 
 
 
Interest rate - Matched book
 

 
210

 

 

 
210

Interest rate - Other
 
8

 
79

 

 
(63
)
 
24

Foreign exchange
 

 
6

 

 

 
6

Equity - Deutsche Bank restricted stock unit (“DBRSU”) obligation
 

 
7

 

 

 
7

Total derivative liabilities
 
8

 
302

 

 
(63
)
 
247

Total liabilities at fair value on a recurring basis
 
$
283

 
$
341

 
$
7

 
$
(63
)
 
$
568


12

Notes to Condensed Consolidated Financial Statements (Unaudited)





$ in millions
 
Level 1
 
Level 2
 
Level 3
 
Netting
adjustments
 
Balance as of
September 30,
2018
Assets at fair value on a recurring basis:
 
 
 
 
 
 
 
 
 
 
Trading instruments
 
 
 
 
 
 
 
 
 
 
Municipal and provincial obligations
 
$
1

 
$
247

 
$

 
$

 
$
248

Corporate obligations
 
10

 
100

 

 

 
110

Government and agency obligations
 
19

 
72

 

 

 
91

Agency MBS and CMOs
 
3

 
124

 

 

 
127

Non-agency CMOs and ABS
 

 
69

 

 

 
69

Total debt securities
 
33

 
612

 

 

 
645

Equity securities
 
15

 

 

 

 
15

Brokered certificates of deposit
 

 
39

 

 

 
39

Other
 

 
2

 
1

 

 
3

Total trading instruments
 
48

 
653

 
1

 

 
702

Available-for-sale securities
 
 

 
 

 
 

 
 

 
 

Agency MBS and CMOs
 

 
2,628

 

 

 
2,628

Other securities
 
1

 

 

 

 
1

Auction rate securities (“ARS”) preferred
 

 

 
67

 

 
67

Total available-for-sale securities
 
1

 
2,628

 
67

 

 
2,696

Derivative assets
 
 
 
 
 
 
 
 
 
 
Interest rate - Matched book
 

 
160

 

  

 
160

Interest rate - Other
 

 
74

 

 
(55
)
 
19

Foreign exchange
 

 
1

 

 

 
1

Total derivative assets
 


235




(55
)

180

Private equity investments - not measured at NAV
 

 

 
56

 

 
56

Other investments
 
201

 
1

 

 

 
202

Subtotal
 
250

 
3,517

 
124

 
(55
)
 
3,836

Private equity investments - measured at NAV
 
 
 
 
 
 
 
 
 
91

Total assets at fair value on a recurring basis
 
$
250

 
$
3,517

 
$
124

 
$
(55
)
 
$
3,927

 
 
 
 
 
 
 
 
 
 
 
Liabilities at fair value on a recurring basis:
 
 
 
 
 
 
 
 
 
 
Trading instruments sold but not yet purchased
 
 
 
 
 
 
 
 
 
 
Municipal and provincial obligations
 
$

 
$
1

 
$

 
$

 
$
1

Corporate obligations
 
2

 
25

 

 

 
27

Government and agency obligations
 
194

 

 

 

 
194

Non-agency MBS and CMOs
 

 
1

 

 

 
1

Total debt securities
 
196

 
27

 

 

 
223

Equity securities
 
5

 

 

 

 
5

Other
 

 

 
7

 

 
7

Total trading instruments sold but not yet purchased
 
201

 
27

 
7

 

 
235

Derivative liabilities
 
 
 
 
 
 
 
 
 
 
Interest rate - Matched book
 

 
160

 

 

 
160

Interest rate - Other
 

 
114

 

 
(47
)
 
67

Foreign exchange
 

 
4

 

 

 
4

Equity - DBRSU obligation
 

 
16

 

 

 
16

Total derivative liabilities
 

 
294

 

 
(47
)
 
247

Total liabilities at fair value on a recurring basis
 
$
201

 
$
321

 
$
7

 
$
(47
)
 
$
482



13

Notes to Condensed Consolidated Financial Statements (Unaudited)





Level 3 recurring fair value measurements

The following tables present the changes in fair value for Level 3 assets and liabilities measured at fair value on a recurring basis. The realized and unrealized gains and losses in the tables may include changes in fair value that were attributable to both observable and unobservable inputs. In the following tables, gains/(losses) on trading instruments are reported in “Principal transactions,” gains/(losses) on private equity and other investments are reported in “Other” revenues, and gains/(losses) on available-for-sale securities are reported in either “Other” revenues (when included in earnings) or “Other comprehensive income” in our Condensed Consolidated Statements of Income and Comprehensive Income.
Three months ended March 31, 2019
Level 3 instruments at fair value
 
 
Financial assets
 
Financial liabilities
$ in millions
 
Trading instruments - Other
 
Private equity investments
 
Other investments
 
Trading instruments - Other
Fair value beginning of period
 
$
3

 
$
59

 
$
67

 
$
(4
)
Total gains/(losses) for the period:
 
 

 
 

 
 

 
 

Included in earnings
 
(1
)
 

 

 

Purchases and contributions
 
22

 

 

 
4

Sales
 
(22
)
 

 

 
(7
)
Transfers:
 
 

 
 

 
 

 
 

Into Level 3
 

 

 

 

Out of Level 3
 

 

 

 

Fair value end of period
 
$
2

 
$
59

 
$
67

 
$
(7
)
Unrealized gains/(losses) for the period included in earnings for instruments held at the end of the reporting period
 
$
1

 
$

 
$

 
$

Six months ended March 31, 2019
Level 3 instruments at fair value
 
 
Financial assets
 
Financial liabilities
$ in millions
 
Trading instruments - Other
 
Private equity investments
 
Other investments (1)
 
Trading instruments - Other
Fair value beginning of period
 
$
1

 
$
56

 
$
67

 
$
(7
)
Total gains/(losses) for the period:
 
 

 
 

 
 

 
 

Included in earnings
 

 

 

 
2

Purchases and contributions
 
60

 
3

 

 
9

Sales
 
(59
)
 

 

 
(11
)
Transfers:
 
 

 
 

 
 

 
 

Into Level 3
 

 

 

 

Out of Level 3
 

 

 

 

Fair value end of period
 
$
2

 
$
59

 
$
67

 
$
(7
)
Unrealized gains/(losses) for the period included in earnings for instruments held at the end of the reporting period
 
$

 
$

 
$

 
$


(1)
Beginning of period balance includes $67 million of preferred ARS, which were reclassified from available-for-sale securities in connection with the adoption of ASU 2016-01. See Note 2 for additional information.

14

Notes to Condensed Consolidated Financial Statements (Unaudited)





Three months ended March 31, 2018
Level 3 instruments at fair value
 
 
Financial assets
 
Financial
liabilities
$ in millions
 
Trading instruments - Other
 
Available-for-sale securities - ARS -
preferred
 
Private equity
investments
 
Trading instruments - Other
Fair value beginning of period
 
$
3

 
$
107

 
$
89

 
$
(1
)
Total gains/(losses) for the period:
 
 
 
 
 
 

 
 

Included in earnings
 

 

 
7

 
1

Included in other comprehensive income
 

 
1

 

 

Purchases and contributions
 
24

 

 

 

Sales
 
(26
)
 

 

 
(1
)
Transfers: