Segment Information

9 Months Ended

Sep. 30, 2014

Segment Information [Abstract]

Segment Information

10.Segment Information

The Company’s two reportable segments are Investor Services and Advisor Services. The Company structures its 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, retirement plan services, and corporate brokerage services. The Advisor Services segment provides custodial, trading, and support services to independent investment advisors, and retirement business services to independent retirement plan advisors and recordkeepers whose plan assets are held at Schwab Bank. Revenues and expenses are allocated to the Company’s two segments based on which segment services the client.

The Company evaluates the performance of its segments on a pre-tax basis, excluding extraordinary or significant non-recurring itemsand results of discontinued operations. 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 Company’s reportable segments is presented in the following table:

	Investor Services				Advisor Services				Unallocated				Total
Three Months Ended September 30,	2014		2013		2014		2013		2014		2013		2014		2013
Net Revenues:
Asset management and administration fees	$	455	$	410	$	194	$	173	$	-	$	-	$	649	$	583
Net interest revenue		513		450		60		56		-		-		573		506
Trading revenue		144		153		65		71		-		-		209		224
Other		57		44		18		13		45		-		120		57
Provision for loan losses		1		3		-		1		-		-		1		4
Net impairment losses on securities		(1)		-		-		(1)		-		-		(1)		(1)
Total net revenues		1,169		1,060		337		313		45		-		1,551		1,373
Expenses Excluding Interest		741		705		224		204		68		-		1,033		909
Income before taxes on income	$	428	$	355	$	113	$	109	$	(23)	$	-	$	518	$	464
Taxes on income														197		174
Net Income													$	321	$	290

	Investor Services				Advisor Services				Unallocated				Total
Nine Months Ended September 30,	2014		2013		2014		2013		2014		2013		2014		2013
Net Revenues:
Asset management and administration fees	$	1,324	$	1,199	$	568	$	508	$	-	$	-	$	1,892	$	1,707
Net interest revenue		1,512		1,281		176		167		-		-		1,688		1,448
Trading revenue		460		462		208		220		-		-		668		682
Other		155		129		53		43		45		-		253		172
Provision for loan losses		6		(1)		1		-		-		-		7		(1)
Net impairment losses on securities		(1)		(7)		-		(1)		-		-		(1)		(8)
Total net revenues		3,456		3,063		1,006		937		45		-		4,507		4,000
Expenses Excluding Interest		2,213		2,178		665		615		68		-		2,946		2,793
Income before taxes on income	$	1,243	$	885	$	341	$	322	$	(23)	$	-	$	1,561	$	1,207
Taxes on income														590		455
Net Income													$	971	$	752