SCHWAB CHARLES CORP
For the period ended Dec 31, 2025. Filed Feb 25, 2026.
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FY2025 · Filed Feb 25, 2026
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Leases
- Leases
The following table details the amounts and locations of lease assets and liabilities on the consolidated balance sheets:
| December 31, · 2025 · 2024 | |||
|---|---|---|---|
| Balance Sheet Classification | |||
| Lease assets: | |||
| Operating lease ROU assets | Other assets | $705 | $591 |
| Finance lease ROU assets | Equipment, office facilities, and property — net | 35 | 47 |
| Lease liabilities: | |||
| Operating lease liabilities | Accrued expenses and other liabilities | $903 | $816 |
| Finance lease liabilities | Long-term debt | 37 | 49 |
The components of lease expense are as follows:
| Year Ended December 31, | 2025 | 2024 | 2023 |
|---|---|---|---|
| Lease Cost | |||
| Operating lease cost (1) | $215 | $215 | $260 |
| Variable lease cost (2) | 45 | 48 | 48 |
(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, 2025, 2024, and 2023.
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.
The following tables present supplemental operating lease information:
| December 31, | 2025 | 2024 |
|---|---|---|
| Lease Term and Discount Rate | ||
| Weighted-average remaining lease term (years) | 5.62 | 5.53 |
| Weighted-average discount rate | 4.09% | 3.96% |
| Annual Maturities of Lease Liabilities | Operating Leases |
|---|---|
| 2026 | $224 |
| 2027 | 223 |
| 2028 | 169 |
| 2029 | 107 |
| 2030 | 82 |
| Thereafter | 214 |
| Total lease payments (1) | 1,019 |
| Less: Interest | 116 |
| Present value of lease liabilities | $903 |
(1)Lease payments exclude $45 million of legally binding minimum lease payments for leases signed, but not yet commenced. These leases will commence beginning in 2026 with lease terms of 7 to 15 years.
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