Segment Information

12 Months Ended

Dec. 31, 2023

Segment Reporting [Abstract]

Segment Information

Segment Information

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, investment advisory, and banking and trust 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 trust, and support services, as well as retirement business services, to independent RIAs, independent retirement advisors, and recordkeepers. Revenues and expenses are attributed to the two segments based on which segment services the client.

The accounting policies of the segments are the same as those described in Note 2. For the computation of its segment information, Schwab utilizes an activity-based costing model to allocate traditional income statement line item expenses (e.g., compensation and benefits, depreciation and amortization, and professional services) to the business activities driving segment expenses (e.g., client service, opening new accounts, or business development) and a funds transfer pricing methodology to allocate certain revenues.

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 table:

	Investor Services						Advisor Services						Total
Year Ended December 31,	2023		2022		2021		2023		2022		2021		2023		2022		2021
Net Revenues
Net interest revenue	$	7,095	$	7,819	$	6,052	$	2,332	$	2,863	$	1,978	$	9,427	$	10,682	$	8,030
Asset management and administration fees	3,398		3,049		3,130		1,358		1,167		1,144		4,756		4,216		4,274
Trading revenue	2,806		3,181		3,753		424		492		399		3,230		3,673		4,152
Bank deposit account fees	524		916		964		181		493		351		705		1,409		1,315
Other	582		605		562		137		177		187		719		782		749
Total net revenues	14,405		15,570		14,461		4,432		5,192		4,059		18,837		20,762		18,520
Expenses Excluding Interest	9,217		8,514		8,289		3,242		2,860		2,518		12,459		11,374		10,807
Income before taxes on income	$	5,188	$	7,056	$	6,172	$	1,190	$	2,332	$	1,541	$	6,378	$	9,388	$	7,713
Capital expenditures	$	586	$	702	$	771	$	218	$	250	$	270	$	804	$	952	$	1,041
Depreciation and amortization	$	595	$	471	$	399	$	209	$	181	$	150	$	804	$	652	$	549
Amortization of acquired intangible assets	$	441	$	479	$	499	$	93	$	117	$	116	$	534	$	596	$	615