Segment Information

12 Months Ended

Dec. 31, 2015

Segment Reporting [Abstract]

Segment Information

NOTE 13 – SEGMENT INFORMATION

An operating segment is defined as a component of an entity that has all of the following characteristics:  it engages in business activities from which it may earn revenues and incur expenses; its operating results are regularly reviewed by the entity’s chief operating decision-maker (or decision-making group) for resource allocation and to assess performance; and it has discrete financial information available.  Operating segments may be combined in certain circumstances into reportable segments for financial reporting.  The Partnership has two operating and reportable segments based upon geographic location, the U.S. and Canada.

Each segment, in its geographic location, primarily derives revenue from the retail brokerage business through the distribution of mutual fund shares, fees related to assets held by and account services provided to its clients, including investment advisory services, the purchase or sale of listed and unlisted securities and insurance products, and principal transactions.

The Partnership evaluates segment performance based upon income (loss) before allocations to partners, as well as income before variable compensation (“pre-variable income”).  Variable compensation is determined at the Partnership level for profit sharing and home office associate and branch office administrator bonus amounts, and therefore is allocated to each geographic segment independent of that segment’s individual pre-variable income.  Financial advisor bonuses are determined by the overall Partnership’s profitability, as well as the performance of the individual financial advisors.  Both income (loss) before allocations to partners and pre-variable income are considered in evaluating segment performance.  Long-lived assets are not disclosed because the balances are not used for evaluating segment performance and deciding how to allocate resources to segments.  However, total assets for each segment are provided for informational purposes, as well as capital expenditures and depreciation and amortization.

The accounting policies of the segments are the same as those described in Note 1 – Summary of Significant Accounting Policies.  For computation of segment information, the Partnership allocates costs incurred by the U.S. entity in support of Canada operations to the Canada segment.  Canada segment information is based upon the Consolidated Financial Statements of the Partnership’s Canada operations without eliminating intercompany items, such as management fees paid to affiliated entities.  The U.S. segment information is derived from the Consolidated Financial Statements less the Canada segment information as presented.  This is consistent with how management reviews the segments in order to assess performance.

The following table shows financial information for the Partnership’s reportable segments for the years ended December 31, 2015, 2014 and 2013:

	2015			2014			2013
Net revenue:
U.S.	$	6,432		$	6,074		$	5,457
Canada		187			204			200
Total net revenue	$	6,619		$	6,278		$	5,657
Net interest and dividends revenue:
U.S.	$	81		$	76		$	70
Canada		2			4			5
Total net interest and dividends revenue	$	83		$	80		$	75
Pre-variable income:
U.S.	$	1,650		$	1,559		$	1,310
Canada		8			12			7
Total pre-variable income	$	1,658		$	1,571		$	1,317
Variable compensation:
U.S.	$	803		$	781		$	626
Canada		17			20			17
Total variable compensation	$	820		$	801		$	643
Income (loss) before allocations to partners:
U.S.	$	847		$	778		$	684
Canada		(9	)		(8	)		(10	)
Total income before allocations to partners	$	838		$	770		$	674
Capital expenditures:
U.S.	$	93		$	88		$	81
Canada		1			2			3
Total capital expenditures	$	94		$	90		$	84
Depreciation and amortization:
U.S.	$	81		$	80		$	80
Canada		2			2			2
Total depreciation and amortization	$	83		$	82		$	82
Total assets at year end:
U.S.	$	15,897		$	14,290		$	13,341
Canada		459			480			454
Total assets	$	16,356		$	14,770		$	13,795
Financial advisors at year end:
U.S.		13,839			13,287			12,483
Canada		669			713			675
Total financial advisors		14,508			14,000			13,158