SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

x                      QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended September 30, 2004

OR

o                         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: 1-6862

Credit Suisse First Boston (USA), Inc.

(Exact name of registrant as specified in its charter)

 

 

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 x   No o

Indicated by check mark whether the registrant is an accelerated filer (as defined in Rule 12b-2 of the Exchange Act). Yes o   No x

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, 2004

PART I	FINANCIAL INFORMATION
	ITEM 1:	Financial Statements
		Condensed Consolidated Statements of Financial Condition (Unaudited) as of September 30, 2004 and December 31, 2003		2
		Condensed Consolidated Statements of Income (Unaudited) for the three and nine months ended September 30, 2004 and 2003		4
		Condensed Consolidated Statements of Changes in Stockholders’ Equity (Unaudited) for the nine months ended September 30, 2004 and 2003		5
		Condensed Consolidated Statements of Cash Flows (Unaudited) for the nine months ended September 30, 2004 and 2003		6
		Notes to Condensed Consolidated Financial Statements (Unaudited)
		1.	Summary of Significant Accounting Policies	7
		2.	Share-Based Compensation	10
		3.	Discontinued Operations	10
		4.	Related Party Transactions	10
		5.	Income Taxes	13
		6.	Transfers and Servicing of Financial Assets	15
		7.	Borrowings	21
		8.	Private Equity and Other Long-Term Investments	22
		9.	Net Capital	23
		10.	Cash and Securities Segregated Under Federal and Other Regulations	24
		11.	Derivatives Contracts	24
		12.	Employee Benefit Plans	27
		13.	Commitments	28
		14.	Guarantees	29
		15.	Industry Segment and Geographic Data	33
		16.	Goodwill and Identifiable Intangible Assets	35
		17.	Legal Proceedings	35
		Report of Independent Registered Public Accounting Firm		37
	ITEM 2:	Management’s Discussion and Analysis of Financial Condition and Results of Operations		38
	ITEM 3:	Quantitative and Qualitative Disclosures About Market Risk		64
	ITEM 4:	Controls and Procedures		66
PART II	OTHER INFORMATION
	ITEM 1:	Legal Proceedings		67
	ITEM 5:	Other Information		68
	ITEM 6:	Exhibits and Reports on Form 8-K		68
	Signature			69

 

AVAILABLE INFORMATION

We file annual, quarterly and current reports and other information with the Securities and Exchange Commission, or SEC. Our SEC filings are available to the public over the internet on the SEC’s website at www.sec.gov. You may also view our annual, quarterly and current reports on our website at www.csfb.com (under “Company Information”) as soon as is reasonably practicable after the report is electronically filed with, or furnished to, the SEC. The information on our website is not incorporated by reference into this Quarterly Report.

1

PART I
FINANCIAL INFORMATION
Item 1: Financial Statements

CREDIT SUISSE FIRST BOSTON (USA), INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Financial Condition
(Unaudited)
(In millions)

		September 30, 2004					December 31, 2003
ASSETS
Cash and cash equivalents			$	373				$	334
Collateralized short-term financings:
Securities purchased under agreements to resell			51,048					50,388
Securities borrowed			83,454					77,999
Receivables:
Customers			1,391					2,859
Brokers, dealers and other			9,205					6,673
Financial instruments owned (includes securities pledged as collateral of $52,895 and $47,565, respectively):
U.S. government and agencies			35,044					31,781
Corporate debt			13,706					12,761
Mortgage whole loans			14,636					9,101
Equities			22,573					15,161
Commercial paper			2,495					641
Private equity and other long-term investments			2,615					1,123
Derivatives contracts			5,508					5,573
Other			3,960					3,765
Net deferred tax asset			1,250					1,283
Office facilities and property at cost (net of accumulated depreciation and amortization of $882 and $865, respectively)			504					468
Goodwill			527					532
Loans receivable from parent and affiliates			21,304					19,481
Other assets and deferred amounts			1,134					1,643
Total assets			$	270,727				$	241,566

 

See accompanying notes to condensed consolidated financial statements (unaudited).

2

CREDIT SUISSE FIRST BOSTON (USA), INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Financial Condition (Continued)
(Unaudited)
(In millions, except share data)

		September 30, 2004					December 31, 2003
LIABILITIES AND STOCKHOLDERS’ EQUITY
Commercial paper and short-term borrowings			$	18,131				$	15,984