Segment Information

12 Months Ended

Dec. 31, 2020

Segment Reporting [Abstract]

Segment Information

NOTE 16 – SEGMENT INFORMATION

The Partnership has determined it has two operating and reportable segments based upon geographic location, the U.S. and Canada.  The accounting policies of the segments are the same as those described in Note 1 – Summary of Significant Accounting Policies.  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.  For computation of segment information, the Partnership allocates costs incurred by the U.S. entity in support of Canada operations to the Canada segment and does not eliminate 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.  Pre-variable income represents income before variable compensation expense and before allocations to partners.  This is consistent with how management reviews the segments to assess performance.

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 following table shows financial information for the Partnership’s reportable segments for the years ended December 31, 2020, 2019, and 2018:

	2020			2019			2018
Net revenue:
U.S.	$	9,805		$	9,127		$	8,233
Canada		258			242			236
Total net revenue	$	10,063		$	9,369		$	8,469
Net interest and dividends revenue:
U.S.	$	99		$	249		$	228
Canada		6			10			9
Total net interest and dividends revenue	$	105		$	259		$	237
Pre-variable income:
U.S.	$	2,673		$	2,194		$	1,972
Canada		26			16			16
Total pre-variable income	$	2,699		$	2,210		$	1,988
Variable compensation:
U.S.	$	1,385		$	1,094		$	975
Canada		29			24			23
Total variable compensation	$	1,414		$	1,118		$	998
Income (loss) before allocations to partners:
U.S.	$	1,288		$	1,100		$	997
Canada		(3	)		(8	)		(7	)
Total income before allocations to partners	$	1,285		$	1,092		$	990
Capital expenditures:
U.S.	$	126		$	170		$	102
Canada		3			6			3
Total capital expenditures	$	129		$	176		$	105
Depreciation and amortization:
U.S.	$	123		$	113		$	92
Canada		2			2			2
Total depreciation and amortization	$	125		$	115		$	94
Total assets at year end:
U.S.	$	27,258		$	18,577		$	15,187
Canada		1,062			740			628
Total assets	$	28,320		$	19,317		$	15,815
Financial advisors at year end:
U.S.		18,321			17,830			16,797
Canada		904			874			818
Total financial advisors		19,225			18,704			17,615