Segment Information

3 Months Ended

Mar. 31, 2020

Schwab’s two reportable segments are Investor Services and Advisor Services. Schwab structures the operating segments according to its clients and the services provided to those clients. The Investor Services segment provides retail brokerage and banking services to individual investors, and retirement plan services, as well as other corporate brokerage services, to businesses and their employees. The Advisor Services segment provides custodial, trading, banking, and support services, as well as retirement business services, to independent RIAs, independent retirement advisors, and recordkeepers. Revenues and expenses are attributed to the two segments based on which segment services the client.

Management evaluates the performance of the segments on a pre-tax basis. Segment assets and liabilities are not used for evaluating segment performance or in deciding how to allocate resources to segments. There are no revenues from transactions between the segments.

Financial information for the segments is presented in the following table:



	Investor Services				Advisor Services				Total
Three Months Ended March 31,	2020		2019		2020		2019		2020		2019
Net Revenues
Net interest revenue	$	1,128	$	1,195	$	444	$	486	$	1,572	$	1,681
Asset management and administration fees	600		533		227		222		827		755
Trading revenue ⁽¹⁾	119		141		69		76		188		217
Other ⁽¹⁾	20		42		10		28		30		70
Total net revenues	1,867		1,911		750		812		2,617		2,723
Expenses Excluding Interest	1,154		1,062		416		397		1,570		1,459
Income before taxes on income	$	713	$	849	$	334	$	415	$	1,047	$	1,264

⁽¹⁾ In the first quarter of 2020, order flow revenue was reclassified from other revenue to trading revenue. Prior period amounts have been reclassified to reflect this change.