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 March 31, 2005

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)

 

 

(212) 325-2000

(Registrant’s telephone number, including area code)

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 March 31, 2005

PART I	FINANCIAL INFORMATION
	ITEM 1:	Financial Statements
		Condensed Consolidated Statements of Financial Condition (Unaudited) as of March 31, 2005 and December 31, 2004		2
		Condensed Consolidated Statements of Income (Unaudited) for the three months ended March 31, 2005 and 2004		4
		Condensed Consolidated Statements of Changes in Stockholder’s Equity (Unaudited) for the three months ended March 31, 2005 and 2004		5
		Condensed Consolidated Statements of Cash Flows (Unaudited) for the three months ended March 31, 2005 and 2004		6
		Notes to Condensed Consolidated Financial Statements (Unaudited)		7
		1. Summary of Significant Accounting Policies		7
		2. Related Party Transactions		8
		3. Transfers and Servicing of Financial Assets		11
		4. Private Equity and Other Long-Term Investments		15
		5. Derivatives Contracts		16
		6. Borrowings		17
		7. Leases and Commitments		19
		8. Guarantees		20
		9. Net Capital Requirements		21
		10. Cash and Securities Segregated Under Federal and Other Regulations		22
		11. Share-Based Compensation		22
		12. Employee Benefit Plans		23
		13. Legal Proceedings		24
		14. Industry Segment and Geographic Data		24
		Report of Independent Registered Public Accounting Firm		26
	ITEM 2:	Management’s Discussion and Analysis of Financial Condition and Results of Operations		27
	ITEM 3:	Quantitative and Qualitative Disclosures About Market Risk		53
	ITEM 4:	Controls and Procedures		55
PART II	OTHER INFORMATION
	ITEM 1:	Legal Proceedings		56
	ITEM 6:	Exhibits		56
	Signature			57

 

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)

		March 31, 2005			December 31, 2004
ASSETS
Cash and cash equivalents		$	465			$	727
Collateralized short-term financings:
Securities purchased under agreements to resell		50,661				48,887
Securities borrowed		79,383				82,912
Receivables:
Customers		3,025				3,307
Brokers, dealers and other		21,865				11,094
Financial instruments owned (includes securities pledged as collateral of $70,075 and $54,663, respectively):
U.S. government and agencies		36,876				32,841
Corporate debt		15,981				14,721
Mortgage whole loans		17,380				14,987
Equities		26,181				28,712
Commercial paper		2,197				1,171
Private equity and other long-term investments		3,119				3,127
Derivatives contracts		4,348				3,663
Other		3,564				3,665
Net deferred tax asset		1,005				1,103
Office facilities at cost (net of accumulated depreciation and amortization of $710 and $913, respectively)		413				420
Goodwill		530				527
Loans receivable from parent and affiliates		20,749				22,692
Other assets and deferred amounts		1,703				1,257
Total assets		$	289,445			$	275,813

 

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)

		March 31, 2005		December 31, 2004
LIABILITIES AND STOCKHOLDER’S EQUITY
Commercial paper and short-term borrowings		$ 15,742			$ 21,684
Collateralized short-term financings:
Securities sold under agreements to repurchase		116,421			108,407
Securities loaned		49,122			45,148
Payables:
Customers		8,036			6,767
Brokers, dealers and other		8,769			10,277
Financial instruments sold not yet purchased:
U.S. government and agencies		25,402			20,154
Corporate debt		3,635			2,842
Equities		10,495			5,245
Derivatives contracts		2,840			2,295
Other		277			161
Obligation to return securities received as collateral		4,027			4,980
Accounts payable and accrued expenses		1,869