Exit and Other Related Liabilities (Tables)

3 Months Ended

Mar. 31, 2024

Restructuring and Related Activities [Abstract]

Activity in Exit and Other Related Liabilities

The following is a summary of the Ameritrade integration activity in the Company’s exit and other related liabilities as of March 31, 2024 and activity for the three months ended March 31, 2024:

	Investor Services Employee Compensation and Benefits		Advisor Services Employee Compensation and Benefits		Total
Balance at December 31, 2023 (1)	$	42	$	12	$	54
Costs paid or otherwise settled	(9)		(2)		(11)
Balance at March 31, 2024 (1)	$	33	$	10	$	43

(1) Included in accrued expenses and other liabilities on the condensed consolidated balance sheets.

The following is a summary of the restructuring activity in the Company’s exit and other related liabilities as of March 31, 2024 and activity for the three months ended March 31, 2024:

	Investor Services Employee Compensation and Benefits		Advisor Services Employee Compensation and Benefits		Total
Balance at December 31, 2023 (1)	$	171	$	63	$	234
Amounts recognized in expense (2)	(23)		(8)		(31)
Costs paid or otherwise settled	(146)		(54)		(200)
Balance at March 31, 2024 (1)	$	2	$	1	$	3

(1) Included in accrued expenses and other liabilities on the condensed consolidated balance sheets.

(2) Amounts recognized in expense for severance pay and other termination benefits are included in compensation and benefits on the condensed consolidated statements of income. The three months ended March 31, 2024 includes a reduction of the liability resulting from changes in estimates of $25 million and $8 million in Investor Services and Advisor Services, respectively.

Summary of Exit and Other Related Costs Recognized in Expense

The following table summarizes the Ameritrade integration exit and other related costs recognized in expense for the three months ended March 31, 2024:

	Investor Services						Advisor Services
Three Months Ended March 31,	Employee Compensation and Benefits		Facility Exit Costs (1)		Investor Services Total		Employee Compensation and Benefits		Facility Exit Costs (1)		Advisor Services Total		Total
Occupancy and equipment	$	—	$	1	$	1	$	—	$	—	$	—	$	1
Other	—		2		2		—		—		—		2
Total	$	—	$	3	$	3	$	—	$	—	$	—	$	3

(1) Costs related to facility closures. These costs, which are primarily comprised of impairment and accelerated amortization of ROU assets, relate to the impact of abandoning leased properties. Impairment charges are included in other expense, while accelerated amortization of ROU assets are included in occupancy and equipment on the condensed consolidated statements of income.

The following table summarizes the Ameritrade integration exit and other related costs recognized in expense for the three months ended March 31, 2023:

	Investor Services						Advisor Services
Three Months Ended March 31,	Employee Compensation and Benefits		Facility Exit Costs		Investor Services Total		Employee Compensation and Benefits		Facility Exit Costs		Advisor Services Total		Total
Compensation and benefits	$	8	$	—	$	8	$	2	$	—	$	2	$	10
Total	$	8	$	—	$	8	$	2	$	—	$	2	$	10

The following table summarizes the Ameritrade integration exit and other related costs incurred from October 6, 2020 through March 31, 2024:

	Investor Services						Advisor Services
	Employee Compensation and Benefits		Facility Exit Costs (1)		Investor Services Total		Employee Compensation and Benefits		Facility Exit Costs (1)		Advisor Services Total		Total
Compensation and benefits	$	243	$	—	$	243	$	65	$	—	$	65	$	308
Occupancy and equipment	—		41		41		—		9		9		50
Depreciation and amortization	—		2		2		—		1		1		3
Professional services	—		1		1		—		—		—		1
Other	—		22		22		—		7		7		29
Total	$	243	$	66	$	309	$	65	$	17	$	82	$	391

(1) Costs related to facility closures. These costs, which are primarily comprised of impairment and accelerated amortization of ROU assets and accelerated depreciation of fixed assets, relate to the impact of abandoning leased and other properties. Impairment charges are included in other expense, while accelerated amortization of ROU assets are included in occupancy and equipment on the condensed consolidated statements of income.

The following table summarizes the restructuring exit and other related costs (benefits) recognized in expense for the three months ended March 31, 2024:

	Investor Services						Advisor Services
	Employee Compensation and Benefits		Facility Exit Costs (1)		Investor Services Total		Employee Compensation and Benefits		Facility Exit Costs (1)		Advisor Services Total		Total
Compensation and benefits	$	(23)	$	—	$	(23)	$	(8)	$	—	$	(8)	$	(31)
Occupancy and equipment	—		1		1		—		1		1		2
Other	—		1		1		—		—		—		1
Total	$	(23)	$	2	$	(21)	$	(8)	$	1	$	(7)	$	(28)

(1) Costs related to facility closures. These costs, which are primarily comprised of accelerated amortization of ROU assets, relate to the impact of abandoning leased properties.

The following table summarizes the restructuring exit and other related costs incurred from July 1, 2023 through March 31, 2024:

	Investor Services						Advisor Services
	Employee Compensation and Benefits		Facility Exit Costs (1)		Investor Services Total		Employee Compensation and Benefits		Facility Exit Costs (1)		Advisor Services Total		Total
Compensation and benefits	$	191	$	—	$	191	$	70	$	—	$	70	$	261
Occupancy and equipment	—		14		14		—		5		5		19
Professional services	—		4		4		—		1		1		5
Other	—		135		135		—		47		47		182
Total	$	191	$	153	$	344	$	70	$	53	$	123	$	467

(1) Costs related to facility closures. These costs, which are primarily comprised of impairment and accelerated amortization of ROU assets and impairment of fixed assets, relate to the impact of abandoning leased and other properties. Impairment charges are included in other expense, while accelerated amortization of ROU assets are included in occupancy and equipment on the condensed consolidated statements of income.