SCHWAB CHARLES CORP

14. Leases

The following table details the amounts and locations of lease assets and liabilities on the consolidated balance sheets:

The components of lease expense are as follows:

(1)Includes short-term lease cost, which is immaterial.

(2)Includes payments that are entirely variable and amounts that represent the difference between payments based on an index or rate that is reflected in the lease liability and amounts actually incurred.

The Company had immaterial finance lease cost and sublease income for the years ended December 31, 2024, 2023, and 2022.

In addition to the costs noted above and as a result of its Ameritrade integration and restructuring efforts, the Company recognized impairment losses on ROU assets of $157 million for the year ended December 31, 2023. These losses are included in other expense on the consolidated statements of income. For the purpose of measuring impairment loss, the fair value of the asset group was determined using a discounted cash flow analysis. The fair value of the asset group was not material at December 31, 2023. See Note 16 for additional information regarding the Company’s exit costs related to its Ameritrade integration and restructuring activities.

The following tables present supplemental operating lease information:

• 96 -

(1)Lease payments exclude $33 million of legally binding minimum lease payments for leases signed, but not yet commenced. These leases will commence in 2025 with lease terms of 10 to 11 years.