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 determined it has two operating and reportable segments based upon geographic location, the U.S. and Canada. Canada segment information, as reported in the following table, is based upon the Consolidated Financial Statements of the Partnership's Canada operations, which primarily occur through a non-guaranteed subsidiary of the Partnership. The U.S. segment information is derived from the Consolidated Financial Statements less the Canada segment information as presented. Pre-variable income represents income before variable compensation expense and before allocations to partners. This is consistent with how management views the segments in order to assess performance.

Each segment, in its geographic location, primarily derives revenue from the retail brokerage business from fees for providing investment advisory and other account services to its clients, fees for assets held by clients, the distribution of mutual fund shares, and commissions for the purchase or sale of securities and the purchase of insurance products.

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, 2018, 2017 and 2016:

	2018			2017			2016
Net revenue:
U.S.	$	8,233		$	7,305		$	6,381
Canada		236			201			176
Total net revenue	$	8,469		$	7,506		$	6,557

Net interest and dividends revenue:
U.S.	$	228		$	170		$	116
Canada		9			4			2
Total net interest and dividends revenue	$	237		$	174		$	118

Pre-variable income:
U.S.	$	1,972		$	1,681		$	1,417
Canada		16			4			1
Total pre-variable income	$	1,988		$	1,685		$	1,418

Variable compensation:
U.S.	$	975		$	795		$	657
Canada		23			18			15
Total variable compensation	$	998		$	813		$	672

Income (loss) before allocations to partners:
U.S.	$	997		$	886		$	760
Canada		(7	)		(14	)		(14	)
Total income before allocations to partners	$	990		$	872		$	746

Capital expenditures:
U.S.	$	102		$	78		$	72
Canada		3			2			1
Total capital expenditures	$	105		$	80		$	73

Depreciation and amortization:
U.S.	$	92		$	83		$	80
Canada		2			2			2
Total depreciation and amortization	$	94		$	85		$	82

Total assets at year end:
U.S.	$	15,187		$	16,563		$	18,850
Canada		628			613			574
Total assets	$	15,815		$	17,176		$	19,424

Financial advisors at year end:
U.S.		16,797			15,347			14,259
Canada		818			748			660
Total financial advisors		17,615			16,095			14,919