Revenue Recognition

9 Months Ended

Sep. 30, 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 September 30,				Nine Months Ended September 30,
	2024		2023		2024		2023
Net interest revenue
Cash and cash equivalents	$	369	$	459	$	1,205	$	1,419
Cash and investments segregated	345		285		1,014		1,041
Receivables from brokerage clients	1,431		1,282		4,042		3,533
Available for sale securities	531		724		1,680		2,340
Held to maturity securities	650		706		1,998		2,172
Bank loans	484		426		1,384		1,227
Securities lending revenue	87		105		258		341
Other interest revenue	31		41		105		75
Interest revenue	3,928		4,028		11,686		12,148
Bank deposits	(841)		(911)		(2,602)		(2,392)
Payables to brokerage clients	(79)		(66)		(229)		(205)
Other short-term borrowings	(150)		(97)		(382)		(280)
Federal Home Loan Bank borrowings	(310)		(477)		(988)		(1,387)
Long-term debt	(208)		(193)		(640)		(489)
Securities lending expense	(118)		(46)		(230)		(96)
Other interest expense	—		(1)		(2)		(2)
Interest expense	(1,706)		(1,791)		(5,073)		(4,851)
Net interest revenue	2,222		2,237		6,613		7,297
Asset management and administration fees
Mutual funds, ETFs, and CTFs	827		666		2,370		1,881
Advice solutions	559		476		1,572		1,393
Other	90		82		265		241
Asset management and administration fees	1,476		1,224		4,207		3,515
Trading revenue
Commissions	388		394		1,184		1,210
Order flow revenue	357		325		1,066		1,104
Principal transactions	52		49		141		149
Trading revenue	797		768		2,391		2,463
Bank deposit account fees	152		205		488		531
Other	200		172		578		572
Total net revenues	$	4,847	$	4,606	$	14,277	$	14,378

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 $684 million and $599 million at September 30, 2024 and December 31, 2023, respectively.

The Company had net contract assets of $222 million and $239 million at September 30, 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.