consolidated statement of financial condition - Barclays Capital

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10. Subordinated DebtAt December 31, 2010, the Company has subordinateddebt with BGUS for $2,500 million which matures onJuly 16, 2014. Under the provisions of this loan, providedthat the Company has not given written notification tothe Financial Industry Regulatory Authority to cancel therollover, an automatic one year rollover of the maturitydate occurs within seven months of maturity. The loanbears interest at rates based on LIBOR. The carryingvalue of these borrowings approximates fair value.11. Transactions with Affiliated CompaniesThe Company enters into securities transactions andother transactions with affiliates. At December 31, 2010,the following balances with such affiliates were includedin the Consolidated Statement of Financial Condition inthe following line items (in millions):Cash and cash equivalents $ 16Securities purchased under agreements to resell 80,238Securities borrowed 6,129Securities received as collateral 15,688Financial instruments owned, at fair value 6Receivables from brokers, dealers and clearingorganizations 1,600Receivables from customers 1,569Accrued interest and dividend receivables 15Other assets 9Securities sold under agreements to repurchase 22,983Securities loaned 12,593Obligation to return securities received as collateral 15,688Financial instruments sold, but not yet purchased, atfair value 9Payables to customers 889Payables to brokers, dealers and clearingorganizations1,031Short-term borrowings 143Accrued interest and dividend payables 24Other liabilities 48Subordinated debt 2,500At December 31, 2010, the Company had an unsecuredline of credit of $8,000 million with an affiliate, of which$113 million was utilized. The Company had a securedline of credit of $7,000 million with an affiliate, of whichnone was utilized.During the year ended December 31, 2010, under itsintercompany tax sharing agreement with BGUS, theCompany settled $1,045 million of current and deferredfederal income taxes.28
As of December 31, 2010, the Company sold certainreceivables related to investment banking clients to anaffiliate at a fair value of approximately $224 million.During the year ended December 31, 2010, theCompany sold to BBPLC at a fair value of approximately$1,622 million the Company's rights and claims inrespect of assets not yet received from Lehman Brothersas part of the 2008 acquisition of the North Americanbusinesses of Lehman Brothers. These assets had acarrying value of $1,610 million, and the differencebetween the fair value and the carrying value of$12 million was recognized as a capital contribution inthe Consolidated Statement of Financial Condition. Referto Note 15 for further discussion of this matter.The Company is a beneficiary of letters of credit fromBBPLC in the amount of $395 million related to certainmargin requirements of the CME when tradingcommodities.The Company has $92 million of its affiliates’ securitieson deposit with clearing organizations for tradefacilitation purposes.In the ordinary course of business BBPLC may be askedby third parties to guarantee performance of theCompany in relation to futures trading or prime servicesfinancing activities.During the year ended December 31, 2010, theCompany remitted $1,000 million of its excessdistributable retained earnings to BGUS as a cashdividend. As part of BBPLC’s normal operations to ensureadequate capitalization across the firm, the Company isrequired to remit all annual profits or any excessdistributable retained earnings as a dividend to BGUS,unless the profit is required to support capital adequacyrequirements. As part of a regular review of theCompany’s capitalization, it was determined that thedistributable retained earnings were sufficient to supportcapital adequacy requirements and a dividend to BGUS.During the year ended December 31, 2010, $220 millionof employee loans due to the Company were repaid andreissued by BBPLC. The remaining balance of $25 millionof employee loans was recorded in Other assets in theConsolidated Statement of Financial Condition.29
Page 1 and 2: CONSOLIDATEDSTATEMENTOF FINANCIALCO
Page 3 and 4: Report of Independent AuditorsTo th
Page 5 and 6: Consolidated Statement of Financial
Page 7 and 8: 1. OrganizationBarclays Capital Inc
Page 10 and 11: Transfers of Financial AssetsIn gen
Page 12 and 13: absolute terms and relative to the
Page 14 and 15: In such cases, exchange-traded deri
Page 16 and 17: • Mortgage-backed and other asset
Page 18 and 19: tax returns in New York State and N
Page 20 and 21: and requiring expanded information
Page 22 and 23: of Financial Condition. The Company
Page 24 and 25: On March 31, 2010, the Company tran
Page 26 and 27: generally de-recognizes those secur
Page 28 and 29: 6. Receivables from and Payables to
Page 32 and 33: 12. Benefit PlansPension PlanThe Co
Page 34 and 35: The Company's pension assets are in
Page 36 and 37: certain conditions are met. Additio
Page 38 and 39: fully cover losses that customers m
Page 40 and 41: concerning (amongst other things) B
Page 42 and 43: $1,893 million of the maximum poten
Page 44 and 45: dealer price quotations, or alterna
Page 46: SENIOR OFFICERSJerry del MissierChi

consolidated statement of financial condition - Barclays Capital

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