TD Ameritrade 2018 Annual Report

TD AMERITRADE HOLDING CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued) 96 The following table presents after-tax changes in each component of accumulated other comprehensive loss for the fiscal years indicated (dollars in millions): 2018 2017 2016 Investments available-for-sale: Beginning balance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ (5) $ — $ — Other comprehensive loss before reclassification . . . . . . . . . . . . . . . . . . . . . . (9) (5) — Amount reclassified from accumulated other comprehensive loss . . . . . . . . . 7 — — Current period change. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (2) (5) — Ending balance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ (7) $ (5) $ — Cash flow hedging instruments: Beginning balance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ (20) $ (22) $ (25) Amount reclassified from accumulated other comprehensive loss . . . . . . . . . 4 2 3 Adoption of Accounting Standards Update 2018-02 (Note 1) . . . . . . . . . . . . . (4) — — Current period change. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — 2 3 Ending balance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ (20) $ (20) $ (22) Total accumulated other comprehensive loss: Beginning balance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ (25) $ (22) $ (25) Current period change . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (2) (3) 3 Ending balance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ (27) $ (25) $ (22) 19. Segment and Geographic Area Information The Company primarily operates in the securities brokerage industry and has no other reportable segments. Substantially all of the Company's revenues from external clients for the fiscal years ended September 30, 2018, 2017 and 2016 were derived from its operations in the United States. 20. Accelerated Stock Repurchase Agreements On September 12, 2018, the Company entered into an agreement with an investment bank counterparty to purchase shares of its common stock under an accelerated stock repurchase transaction (the "September 2018 ASR Agreement"). The Company paid $150 million to the counterparty and received an initial delivery of 2.2 million shares of its common stock on September 13, 2018, representing 80% of the potential shares to be repurchased based on the closing stock price of $54.69 on September 12, 2018. Settlement of the transaction occurred after the end of an averaging period, which began on September 13, 2018 and ended on October 12, 2018. The total number of shares the Company purchased from the counterparty was based on the average of the daily volume-weighted average share prices of the Company's common stock during the averaging period, less a pre-determined discount. Upon settlement, the Company received an additional 0.6 million shares on October 16, 2018. The Company ultimately repurchased a total of approximately 2.8 million shares under the September 2018 ASR Agreement at a net weighted average price of $53.13 per share. In June 2016, the Company entered into an agreement with an investment bank counterparty to purchase $42.5 million of its common stock under an accelerated stock repurchase transaction (the "June 2016 ASR Agreement"). Pursuant to the terms of the June 2016 ASR Agreement, the Company received an initial delivery of 1.1 million shares of its common stock in June 2016 and received an additional 0.3 million shares upon completion of the agreement in September 2016. The Company ultimately repurchased a total of approximately 1.4 million shares under the June 2016 ASR Agreement at a net weighted average price of $29.89 per share.