SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
QUARTERLY REPORT PURSUANT TO
SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the quarter ended September 30, 2002
Commission File Number: 1-6862
Credit Suisse First Boston (USA), Inc.
(Exact name of registrant as specified in its charter)
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Delaware |
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13-1898818 |
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(State or other jurisdiction of |
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(I.R.S. employer identification no.) |
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Eleven Madison Avenue |
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10010 |
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(Address of principal executive offices) |
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(Zip Code) |
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(212) 325-2000 |
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(Registrant’s telephone number, including area code) |
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The Registrant meets the conditions set forth in General Instruction H (1) (a) and (b) of Form 10-Q and is therefore filing this Form 10-Q with the reduced disclosure format.
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 ý No o
All of the outstanding shares of common stock of the registrant, $0.10 par value, are held by Credit Suisse First Boston, Inc.
CREDIT SUISSE FIRST BOSTON (USA), INC.
Quarterly Report on Form 10-Q for the Quarter Ended September 30, 2002
TABLE OF CONTENTS
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Notes to Condensed Consolidated Financial Statements (Unaudited) |
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Management’s Discussion and Analysis of Financial Condition and Results of Operations |
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1
Condensed Consolidated Statements of Financial Condition
(Unaudited)
(In millions)
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September 30, |
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December 31, |
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ASSETS |
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Cash and cash equivalents |
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$ |
1,501 |
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$ |
1,666 |
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Cash and securities segregated for regulatory purposes or deposited with clearing organizations |
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6,524 |
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6,407 |
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Collateralized short-term financings: |
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Securities purchased under agreements to resell |
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54,567 |
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43,961 |
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Securities borrowed |
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67,947 |
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68,232 |
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Receivables: |
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Customers |
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3,820 |
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4,740 |
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Brokers, dealers and other |
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10,199 |
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11,497 |
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Financial instruments owned: |
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U.S. government and agencies (includes securities pledged as collateral of $25,285 and $21,639, respectively) |
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29,123 |
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30,836 |
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Corporate debt (includes securities pledged as collateral of $10,491 and $9,765, respectively) |
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13,761 |
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13,420 |
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Mortgage whole loans (includes loans pledged as collateral of $6,499 and $4,997, respectively) |
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9,624 |
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6,846 |
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Equities (includes securities pledged as collateral of $6,233 and $5,917, respectively) |
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9,382 |
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11,142 |
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Commercial paper |
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995 |
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582 |
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Private equity and other long-term investments |
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808 |
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963 |
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Derivatives contracts |
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3,452 |
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3,077 |
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Other |
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1,771 |
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2,085 |
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Net deferred tax asset |
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1,665 |
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2,200 |
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Office facilities at cost (net of accumulated depreciation and amortization of $979 and $683, respectively) |
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714 |
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759 |
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Goodwill and other intangible assets |
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333 |
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249 |
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Loans receivable from parent and affiliates |
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16,521 |
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7,631 |
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Other assets and deferred amounts |
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1,818 |
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2,027 |
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Total Assets |
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$ |
234,525 |
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$ |
218,320 |
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See accompanying notes to condensed consolidated financial statements (unaudited).
2
Condensed Consolidated Statements of Financial Condition (continued)
(Unaudited)
(In millions, except share data)
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September 30, |
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December 31, |
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LIABILITIES AND STOCKHOLDERS’ EQUITY |
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Commercial paper and short-term borrowings |
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$ |
10,366 |
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$ |
9,287 |
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Collateralized short-term financings: |
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Securities sold under agreements to repurchase |
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111,450 |
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96,101 |
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Securities loaned |
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22,085 |
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27,105 |
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Payables: |
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Customers |
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9,577 |
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11,593 |
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Brokers, dealers and other |
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10,268 |
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12,816 |
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Financial instruments sold not yet purchased: |
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U.S. government and agencies |
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25,273 |
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20,888 |
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Corporate debt |
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3,067 |
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3,402 |
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Equities |
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2,438 |
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3,063 |
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Derivatives contracts |
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2,690 |
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2,957 |
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Other |
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396 |
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345 |
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Obligation to return securities received as collateral |
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561 |
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1,034 |
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Accounts payable and accrued expenses |
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3,581 |
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5,256 |
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Other liabilities |
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1,222 |
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1,922 |
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Long-term borrowings |
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23,521 |
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15,663 |
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Total liabilities |
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226,495 |
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211,432 |
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Stockholders’ Equity: |
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Preferred stock, 50,000,000 shares authorized: |
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Series B Preferred Stock, at $50.00 per share liquidation preference (88,500 and 90,000 shares issued and outstanding at September 30, 2002 and December 31, 2001, respectively) |
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4 |
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5 |
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Common Stock ($0.10 par value; 50,000 shares authorized; 1,100 shares issued and outstanding |
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— |
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— |
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Paid-in capital |
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6,525 |
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6,064 |
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Retained earnings |
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1,562 |
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891 |
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Accumulated other comprehensive loss |
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(61 |
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(72 |
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