TD Ameritrade 2018 Annual Report

45 Cash and investments segregated in special reserve bank accounts for the exclusive benefit of clients under Rule 15c3-3 are summarized in the following table (dollars in billions): September 30, 2018 2017 TD Ameritrade Clearing, Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 2.9 $ 6.4 For general liquidity needs, TDAC currently maintains two senior unsecured committed revolving credit facilities with an aggregate principal amount of $1.45 billion. TDAC also utilizes secured uncommitted lines of credit for short-term liquidity needs. These facilities are described under " Long-term Debt and Other Borrowings " later in this section. In addition, we have established intercompany credit agreements under which the broker-dealer and FCM/FDM subsidiaries may borrow from the Parent. The Parent's intercompany credit agreements with TDAC provides for a committed revolving loan facility of $400 million and an uncommitted revolving loan facility of $300 million. The intercompany credit agreements are described under " Long-Term Debt and Other Borrowings – Intercompany Credit Agreements " later in this section. Liquid Assets Liquid assets is a non-GAAP financial measure. We include the excess capital of our regulated subsidiaries in the calculation of liquid assets, rather than simply including the regulated subsidiaries' cash and cash equivalents, because capital requirements may limit the amount of cash available for dividend from the regulated subsidiaries to the parent company. Excess capital, as defined below, is generally available for dividend from the regulated subsidiaries to the parent company. Liquid assets should be considered as a supplemental measure of liquidity, rather than as a substitute for GAAP cash and cash equivalents. We define liquid assets as the sumof (a) corporate cash and cash equivalents, (b) corporate investments, less securities sold under agreements to repurchase, and (c) our regulated subsidiaries' net capital in excess of minimumoperational targets established by management. Corporate cash and cash equivalents includes cash and cash equivalents from our investment advisory subsidiaries. Liquid assets is based on more conservative measures of net capital than regulatory requirements because we generally manage to higher levels of net capital at our regulated subsidiaries than the regulatory thresholds require. During fiscal year 2018, the presentation of the liquid assets metric was revised in order to provide a consolidated view of our liquidity. Liquid assets may be utilized, as necessary, to meet corporate cash flow needs, fund operational needs, satisfy applicable regulatory requirements and support our business strategies. The prior period, which provided a view of our liquidity net of operational contingencies and other obligations, has been updated to conform to the current presentation. The following table sets forth a reconciliation of cash and cash equivalents, which is the most directly comparable GAAP measure, to liquid assets (dollars in millions): September 30, Change 2018 2017 Cash and cash equivalents (GAAP) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 2,690 $ 1,472 $ 1,218 Less: Non-corporate cash and cash equivalents . . . . . . . . . . . . . . . . . . . . . . . . (2,307) (1,174) (1,133) Corporate cash and cash equivalents. . . . . . . . . . . . . . . . . . . . . . . . 383 298 85 Corporate investments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 386 714 (328) Excess regulatory net capital over management targets . . . . . . . . . . . . . . . . . . 296 46 250 Liquid assets (non-GAAP) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,065 $ 1,058 $ 7