Find Docs

Salomon - IR 97 3 Q (Page 8)

Wodocs >> Sports : Snowboard, Skiing >> Salomon IR 97 3 Q Page 8
Salomon - IR 97 3 Q
Salomon Swapco Inc
Summary of Accounting Policies
Deferred revenue
Deferred revenue represents the unamortized portion of
intermediation and guarantee fees that Swapco receives
from affiliated companies when trades are consummated
but which it recognizes as income over the life of the
transactions involved. These payments are not refundable
under any circumstance.
Income taxes payable
Swapco is included in the consolidated Federal Income tax
return of Salomon Inc. Swapco records income tax expense
based upon its share of the consolidated global tax
provision of Salomon Inc. Income taxes payable are
remitted to SBHC on a quarterly basis as Salomon Inc's
estimated tax payments become due. The payable balance
is not interest-bearing.
Revenues
Intermediation and guarantee fees charged to affiliates
compensate Swapco for the credit enhancement that
Swapco offers Salomon's derivative-trading entities. Fees
are calculated in accordance with intercompany agreements
and vary with the nature of the transaction and the
creditworthiness of the counterparty. Intermediation and
guarantee fees are received at least quarterly and are
recognized as income on a straight-line basis over the life
of the underlying trades.
Interest income represents interest earned on securities
purchased under agreements to resell, on SBHC hedge
swaps on investment securities, and on cash collateral
pledged to customers.
Management fees charged to affiliates compensate Swapco,
in accordance with intercompany agreements, for costs
related to derivative product support functions performed
for those entities by Swapco employees; they are recognized
as income during the period that services are performed
and are received at least quarterly.
12
Salomon Swapco Inc
Summary of Accounting Policies
Expenses
Interest expense is incurred primarily on cash collateral
balances that have been pledged by customers to Swapco.
Management fees and sales commissions charged by
affiliates
compensate those affiliates, in accordance with
intercompany agreements, for costs related to derivative
product support and sales functions performed for Swapco
by those entities. Management fees are paid by Swapco at
least quarterly and are recognized as expense during the
period that services are performed. Sales commissions are
recognized as expense on a straight-line basis over the life
of the underlying trades. In accordance with intercompany
agreements renegotiated effective October 1, 1994, sales
commissions are no longer paid by Swapco.
Compensation and employee-related expenses include
employee base salaries, bonuses and fringe benefits,
including the cost of medical insurance, life insurance,
retirement plans, payroll taxes and recruiting agency fees.
Compensation also includes the cost of Salomon Inc shares
allocated to individual employee accounts pursuant to
Swapco's participation in the Salomon Inc Equity
Partnership Plan.
Professional services include audit and legal fees as well as
ongoing rating agency surveillance fees.
Technology expense includes costs for computer services,
office automation, market data services and voice, data and
network communications.
Occupancy expense includes rent, maintenance, utilities,
occupancy taxes, property insurance and moving and other
occupancy-related expenses incurred in connection with
Swapco's office space at 7 World Trade Center in New
York and at 8800 Hidden River Parkway in Tampa,
Florida.
Other expenses include premiums for credit insurance,
custodial and bank charges as well as other miscellaneous
items.
13

<< Previous       1 2 3 4 5 6 7 8 9 10 11 12 13 14 15       Next >>



Other Documents:
2009 Jawa-CZ 125 Sport, 2010 Beta Urban 125 Special, 2011 Harley-Davidson FLSTSE CVO Softail Convertible, 2009 Azel Blackrose 250, 2009 Kymco Jetix 50, IR 98 1 Q, MOODYS, ACCESSORIES, CLOTHING, GOGGLES 04, LENSES, MX GEAR ORDER FORM, consumer sweepstakes, vegas official rules, vtb fwd, vtm wc 12 24, AC power cord IEC, phase thermal pad mv, bja sa, bjs fwa u, erm sa, erm sb, ers 00a, ers sa, ers sb, sva sb, svm sb, vta sb, BWB SX, PFC SX, bjd sa, bsb sa hsa u, bwb sx u, erb 00a, erb 00b, erb fwb, erb hwa, erb hwb, erb sb, erb sz, erd sa, ert 00a, ert 00b, ert fwa, ert fwb, ert hwa, ert hwb, pfc sx u, svb sb, vtc 00a, vtc sa, vtl fwa, wrc sx u, bse sa u, fhkq 00x u,


WODocs | |
All rights reserved. wodocs.comę 2009
WODocs


New Docs

Documents Category:
Arts (Design, Movies, Music, Radio, Television)
Automotive (Cars, Marine, Motorcycle, ATV, Snowmobiles)
Business (Biotechnology and Pharmaceuticals, Chemicals, Construction and Maintenance, Materials, Real Estate, Services)
Electronics (Computers, Motion Control, Power Supply)
Games (Board, Family, Party, Card, Construction, RC Toys)
Health (Animalm, Beauty, Healthcare, Medicine, Pharmacy, Surgery, Weight Loss)
Home (Accessories, Cooking, Decor and Design, Electrical, Family, Pets)
News (Newspapers, Sports, Television)
Recreation (Collecting, Hiking, Scouting, Survival, Travel)
Reference (Education, Libraries and Archives, Museums)
Science (Agriculture, Astronomy, Biology, Chemistry)
Shopping (Antiques and Collectibles, Clothing, Flowers, Food, Home and Garden)
Sports (Bicycle, Snowboard, Skiing, Other)