Segment Information

12 Months Ended

Dec. 31, 2015

Segment Reporting [Abstract]

SEGMENT INFORMATION

SEGMENT INFORMATION

The Company reports its operating results in two segments, based on the manner in which its chief operating decision maker evaluates financial performance and makes resource allocation decisions: 1) trading and investing; and 2) balance sheet management. Trading and investing includes retail brokerage products and services; investor-focused banking products; and corporate services. Balance sheet management includes the management of asset allocation; loans previously originated by the Company or purchased from third parties; deposits and customer payables; and credit, liquidity and interest rate risk. The balance sheet management segment utilizes deposits and customer payables and compensates the trading and investing segment via a market-based transfer pricing arrangement, which is eliminated in consolidation.

The Company does not allocate costs associated with certain functions that are centrally-managed to its operating segments. These costs are separately reported in a corporate/other category, along with technology related costs incurred to support centrally-managed functions; restructuring and other exit activities; debt extinguishment; and corporate debt and corporate investments.

The Company evaluates the performance of its segments based on the segment’s income (loss) before income taxes. Financial information for the Company’s reportable segments is presented in the following tables (dollars in millions):

	Year Ended December 31, 2015
	Trading and Investing		Balance Sheet Management			Corporate/ Other			Total
Net operating interest income	$	702	$	383		$	1		$	1,086
Total non-interest income (loss)	667		(325		)	—			342
Total net revenue	1,369		58			1			1,428
Provision (benefit) for loan losses	—		(40		)	—			(40		)
Total operating expense	827		105			275			1,207
Income (loss) before other income (expense) and income taxes	542		(7		)	(274		)	261
Total other income (expense)	—		—			(170		)	(170		)
Income (loss) before income taxes	$	542	$	(7	)	$	(444	)	$	91
Income tax benefit									(177		)
Net income									$	268

	Year Ended December 31, 2014
	Trading and Investing		Balance Sheet Management		Corporate/ Other			Total
Net operating interest income	$	618	$	455	$	1		$	1,074
Total non-interest income	697		43		—			740
Total net revenue	1,315		498		1			1,814
Provision for loan losses	—		36		—			36
Total operating expense	766		148		231			1,145
Income (loss) before other income (expense) and income taxes	549		314		(230		)	633
Total other income (expense)	—		—		(181		)	(181		)
Income (loss) before income taxes	$	549	$	314	$	(411	)	$	452
Income tax expense								159
Net income								$	293

	Year Ended December 31, 2013
	Trading and Investing		Balance Sheet Management		Corporate/ Other			Total
Net operating interest income	$	527	$	442	$	—		$	969
Total non-interest income	690		64		—			754
Total net revenue	1,217		506		—			1,723
Provision for loan losses	—		143		—			143
Total operating expense	883		179		213			1,275
Income (loss) before other income (expense) and income taxes	334		184		(213		)	305
Total other income (expense)	—		—		(110		)	(110		)
Income (loss) before income taxes	$	334	$	184	$	(323	)	$	195
Income tax expense								109
Net income								$	86

Total non-interest income (loss) for balance sheet management for the year ended December 31, 2015 includes the reclassification of $370 million of losses on cash flow hedges from accumulated comprehensive loss into earnings as a result of the termination of legacy wholesale funding obligations during 2015. Total other income (expense) included losses on early extinguishment of debt of $112 million and $71 million during the year endedDecember 31, 2015 and 2014, respectively. For additional information refer to Note 12—Other Borrowings and Note 13—Corporate Debt.

Segment Assets

	Trading and Investing		Balance Sheet Management		Corporate/ Other(1)		Total
As of December 31, 2015	$	11,554	$	33,278	$	595	$	45,427
As of December 31, 2014	$	12,032	$	33,075	$	423	$	45,530
As of December 31, 2013	$	10,820	$	34,784	$	676	$	46,280

(1) Corporate/Other category includes corporate assets and other elimination adjustments, such as a line of credit between the operating segments, not allocated to the Company's operating segments.

Assets and total net revenue attributable to international locations were not material for the periods presented. No single customer accounts for greater than 10% of gross revenues for any of the years endedDecember 31, 2015, 2014 and 2013.