XML 49 R31.htm IDEA: XBRL DOCUMENT v3.20.2
SEGMENT INFORMATION
 12 Months Ended
Sep. 30, 2020
Segment Reporting [Abstract]  
SEGMENT INFORMATION SEGMENT INFORMATION
We currently operate through the following five segments: PCG; Capital Markets; Asset Management; RJ Bank; and Other.

The segments are determined based upon factors such as the services provided and the distribution channels served and are consistent with how we assess performance and determine how to allocate our resources. The financial results of our segments are presented using the same policies as those described in Note 2. Segment results include allocations of most corporate overhead and benefits expenses to each segment. Refer to the following discussion of the Other segment for a description of the corporate expenses that are not allocated to segments. Intersegment revenues, expenses, receivables and payables are eliminated upon consolidation.

The PCG segment provides financial planning, investment advisory and securities transaction services through a branch office network throughout the U.S., Canada and the United Kingdom. The PCG segment includes revenues from securities transaction services, including the sale of equities, mutual funds, fixed income products, and insurance and annuity products to retail clients. In addition, this segment includes revenues from investment advisory services for which we charge either a fee computed as a percentage of assets in a client’s account or a flat period fee. The segment includes servicing fee revenues from mutual fund and annuity companies whose products we distribute and from banks to which we sweep clients’ cash in the RJBDP, our multi-bank sweep program. The segment also includes net interest earnings primarily on client margin loans and cash balances.

Our Capital Markets segment conducts institutional sales, securities trading, equity research, investment banking and the syndication and management of investments that qualify for tax credits. We primarily conduct these activities in the U.S., Canada and Europe.

Our Asset Management segment earns asset management and related administrative fees for providing asset management, portfolio management and related administrative services to retail and institutional clients. This segment oversees a portion of our fee-based assets under administration for our PCG clients through our Asset Management Services division and through RJ Trust. This segment also provides asset management services through Carillon Tower Advisers and affiliates (collectively, “Carillon Tower Advisers”) for certain retail accounts managed on behalf of third-party institutions, institutional accounts and proprietary mutual funds that we manage.

RJ Bank provides various types of loans, including corporate loans, tax-exempt loans, residential loans, SBL and other loans. RJ Bank is active in corporate loan syndications and participations and also provides FDIC-insured deposit accounts, including to clients of our broker-dealer subsidiaries. RJ Bank generates net interest income principally through the interest income earned on loans and an investment portfolio of securities, which is offset by the interest expense it pays on client deposits and on its borrowings.

The Other segment includes the results of our private equity investments, interest income on certain corporate cash balances, and certain corporate overhead costs of RJF that are not allocated to operating segments, including the interest costs on our public debt. The Other segment also includes expenses related to our reduction in workforce during the fiscal fourth quarter of 2020.
The following tables present information concerning operations in these segments.
Year ended September 30,
$ in millions202020192018
Net revenues:
Private Client Group
$5,552 $5,359 $5,093 
Capital Markets
1,291 1,083 964 
Asset Management
715 691 654 
RJ Bank
765 846 727 
Other
(82)5 (15)
Intersegment eliminations
(251)(244)(149)
Total net revenues$7,990 $7,740 $7,274 
Pre-tax income/(loss):
Private Client Group
$539 $579 $576 
Capital Markets (1)
225 110 91 
Asset Management
284 253 235 
RJ Bank
196 515 492 
Other (2)
(192)(82)(83)
Total pre-tax income
$1,052 $1,375 $1,311 

(1)    The year ended September 30, 2020 includes a $7 million loss related to the pending disposition of our interests in certain entities that operate predominantly in France. The year ended September 30, 2019 includes a $15 million loss on the sale of our operations related to research, sales and trading of European equities, as well as a $19 million goodwill impairment charge related to our Canadian Capital Markets business.

(2)    The year ended September 30, 2020 includes reduction in workforce expenses of $46 million associated with position eliminations that occurred in our fiscal fourth quarter of 2020 in response to the economic environment. These expenses primarily consist of severance and related payroll expenses, as well as expenses related to company-paid benefits.

No individual client accounted for more than ten percent of revenues in any of the years presented.

The following table presents our net income on a segment basis.
Year ended September 30,
$ in millions202020192018
Net interest income/(expense):
Private Client Group
$132 $183 $165 
Capital Markets
9 4 4 
Asset Management
1 3 2 
RJ Bank
738 820 704 
Other and intersegment eliminations
(58)(12)(33)
Net interest income$822 $998 $842 

The following table presents our total assets on a segment basis.
September 30,
$ in millions20202019
Total assets:
Private Client Group
$12,574 $9,042 
Capital Markets
2,336 2,287 
Asset Management
380 401 
RJ Bank
30,356 25,516 
Other1,836 1,584 
Total$47,482 $38,830 
The following table presents goodwill, which was included in our total assets, on a segment basis.
September 30,
$ in millions20202019
Goodwill: 
Private Client Group$277 $275 
Capital Markets120 120 
Asset Management69 69 
Total$466 $464 

We have operations in the U.S., Canada and Europe. Substantially all long-lived assets are located in the U.S.  The following table presents our net revenues and pre-tax income classified by major geographic area in which they were earned.
 Year ended September 30,
$ in millions202020192018
Net revenues:  
U.S.$7,446 $7,211 $6,754 
Canada386 391 381 
Europe158 138 139 
Total$7,990 $7,740 $7,274 
Pre-tax income/(loss):
  
U.S.$1,028 $1,356 $1,269 
Canada29 29 47 
Europe (1)
(5)(10)(5)
Total$1,052 $1,375 $1,311 

(1)    The pre-tax loss in Europe for the year ended September 30, 2020 reflects a $7 million loss related to the pending disposition of our interests in certain entities that operate predominantly in France. The pre-tax loss in Europe for the year ended September 30, 2019 reflects a $15 million loss on the sale of our operations related to research, sales and trading of European equities. These losses were recorded in our Capital Markets segment.

The following table presents our total assets by major geographic area in which they were held.
September 30,
$ in millions20202019
Total assets: 
U.S.$44,090 $35,978 
Canada3,260 2,754 
Europe132 98 
Total$47,482 $38,830 

The following table presents goodwill, which was included in our total assets, classified by major geographic area in which it was held.
September 30,
$ in millions20202019
Goodwill: 
U.S.$433 $433 
Canada24 23 
Europe9 8 
Total$466 $464 
During the year ended September 30, 2019, we recognized an impairment charge of $19 million related to our Canadian Capital Markets business. See Note 10 for a discussion of our goodwill impairment testing.