Segment Information

9 Months Ended

Sep. 30, 2018

Schwab’s two reportable segments are Investor Services and Advisor Services. Schwab structures the 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 and retirement plan services, as well as other corporate brokerage services, to businesses and their employees. The Advisor Services segment provides custodial, trading, banking, and support services, as well as retirement business services to independent RIAs, independent retirement advisors, and recordkeepers. Revenues and expenses are allocated to the two segments based on which segment services the client.

Management evaluates the performance of the segments on a pre-tax basis. 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 segments is presented in the following tables:



	Investor Services				Advisor Services				Total
Three Months Ended September 30,	2018		2017		2018		2017		2018		2017
Net Revenues
Net interest revenue	$	1,138	$	818	$	389	$	264	$	1,527	$	1,082
Asset management and administration fees	565		595		244		266		809		861
Trading revenue	112		94		64		57		176		151
Other	53		54		14		17		67		71
Total net revenues	1,868		1,561		711		604		2,579		2,165
Expenses Excluding Interest	1,015		918		345		302		1,360		1,220
Income before taxes on income	$	853	$	643	$	366	$	302	$	1,219	$	945



	Investor Services				Advisor Services				Total
Nine Months Ended September 30,	2018		2017		2018		2017		2018		2017
Net Revenues
Net interest revenue	$	3,158	$	2,366	$	1,039	$	769	$	4,197	$	3,135
Asset management and administration fees	1,727		1,743		747		786		2,474		2,529
Trading revenue	354		311		203		189		557		500
Other	182		159		53		53		235		212
Total net revenues	5,421		4,579		2,042		1,797		7,463		6,376
Expenses Excluding Interest	3,069		2,762		1,042		917		4,111		3,679
Income before taxes on income	$	2,352	$	1,817	$	1,000	$	880	$	3,352	$	2,697