Revenue Recognition

3 Months Ended

Mar. 31, 2024

Revenue from Contract with Customer [Abstract]

Revenue Recognition

Revenue Recognition

Disaggregation of Schwab’s revenue by major source is as follows:

	Three Months Ended March 31,
	2024		2023
Net interest revenue
Cash and cash equivalents	$	454	$	413
Cash and investments segregated	388		432
Receivables from brokerage clients	1,260		1,084
Available for sale securities	594		825
Held to maturity securities	690		746
Bank loans	440		391
Securities lending revenue	76		112
Other interest revenue	39		13
Interest revenue	3,941		4,016
Bank deposits	(921)		(618)
Payables to brokerage clients	(73)		(75)
Other short-term borrowings	(103)		(86)
Federal Home Loan Bank borrowings	(330)		(304)
Long-term debt	(224)		(139)
Securities lending expense	(55)		(22)
Other interest expense	(2)		(2)
Interest expense	(1,708)		(1,246)
Net interest revenue	2,233		2,770
Asset management and administration fees
Mutual funds, ETFs, and CTFs	758		585
Advice solutions	503		453
Other	87		80
Asset management and administration fees	1,348		1,118
Trading revenue
Commissions	413		422
Order flow revenue	352		414
Principal transactions	52		56
Trading revenue	817		892
Bank deposit account fees	183		151
Other	159		185
Total net revenues	$	4,740	$	5,116

Note: For a summary of revenue provided by our reportable segments, see Note 18. The recognition of revenue is not impacted by the operating segment in which revenue is generated.

Contract balances: Receivables from contracts with customers within the scope of Accounting Standards Codification (ASC) 606 Revenue From Contracts With Customers (ASC 606), are included in other assets on the condensed consolidated balance sheets, and totaled $640 million and $599 million at March 31, 2024 and December 31, 2023, respectively.

The Company had net contract assets of $233 million and $239 million at March 31, 2024 and December 31, 2023, respectively, related to the buy down of fixed-rate obligation amounts pursuant to the 2023 IDA agreement. These amounts are included in other assets on the condensed consolidated balance sheets and are amortized on a straight-line basis over the remaining contractual term as a reduction to bank deposit account fee revenue. For additional discussion of the 2023 IDA agreement, see Note 9.

Unsatisfied performance obligations: We do not have any unsatisfied performance obligations other than those that are subject to an elective practical expedient under ASC 606. The practical expedient applies to and is elected for contracts where we recognize revenue at the amount to which we have the right to invoice for services performed.