

	Year Ended December 31, 2019
	Advice & Wealth Management		Asset Management		Annuities		Protection		Corporate & Other			Total Segments		Non-operating Revenue		Total
	(in millions)
Management and financial advice fees:
Asset management fees:
Retail	$	—	$	1,783	$	—	$	—	$	—		$	1,783	$	—	$	1,783
Institutional	—		495		—		—		—			495		—		495
Advisory fees	3,156		—		—		—		—			3,156		—		3,156
Financial planning fees	330		—		—		—		—			330		—		330
Transaction and other fees	355		189		55		8		—			607		—		607
Total management and financial advice fees	3,841		2,467		55		8		—			6,371		—		6,371

Distribution fees:
Mutual funds	726		237		—		—		—			963		—		963
Insurance and annuity	875		171		329		28		6			1,409		—		1,409
Other products	680		—		—		—		—			680		—		680
Total distribution fees	2,281		408		329		28		6			3,052		—		3,052

Other revenues	177		4		—		—		—			181		—		181
Total revenue from contracts with customers	6,299		2,879		384		36		6			9,604		—		9,604

Revenue from other sources ⁽¹⁾	436		34		2,075		1,011		1,096			4,652		265		4,917
Total segment gross revenues	6,735		2,913		2,459		1,047		1,102			14,256		265		14,521

Less: Banking and deposit interest expense	136		—		—		—		8			144		—		144
Total segment net revenues	6,599		2,913		2,459		1,047		1,094			14,112		265		14,377

Less: intersegment revenues	924		55		367		62		(6		)	1,402		8		1,410
Total net revenues	$	5,675	$	2,858	$	2,092	$	985	$	1,100		$	12,710	$	257	$	12,967



	Year Ended December 31, 2018
	Advice & Wealth Management		Asset Management		Annuities		Protection		Corporate & Other			Total Segments		Non-operating Revenue		Total
	(in millions)
Management and financial advice fees:
Asset management fees:
Retail	$	—	$	1,874	$	—	$	—	$	—		$	1,874	$	—	$	1,874
Institutional	—		453		—		—		—			453		—		453
Advisory fees	2,865		—		—		—		—			2,865		—		2,865
Financial planning fees	318		—		—		—		—			318		—		318
Transaction and other fees	355		190		57		8		—			610		—		610
Total management and financial advice fees	3,538		2,517		57		8		—			6,120		—		6,120

Distribution fees:
Mutual funds	729		260		—		—		—			989		—		989
Insurance and annuity	890		173		332		28		7			1,430		—		1,430
Other products	622		—		—		—		—			622		—		622
Total distribution fees	2,241		433		332		28		7			3,041		—		3,041

Other revenues	171		3		—		1		—			175		—		175
Total revenue from contracts with customers	5,950		2,953		389		37		7			9,336		—		9,336

Revenue from other sources ⁽¹⁾	328		58		2,087		1,059		1,335			4,867		158		5,025
Total segment gross revenues	6,278		3,011		2,476		1,096		1,342			14,203		158		14,361

Less: Banking and deposit interest expense	89		—		—		—		6			95		—		95
Total segment net revenues	6,189		3,011		2,476		1,096		1,336			14,108		158		14,266

Less: intersegment revenues	952		50		356		61		(5		)	1,414		17		1,431
Total net revenues	$	5,237	$	2,961	$	2,120	$	1,035	$	1,341		$	12,694	$	141	$	12,835



	Year Ended December 31, 2017
	Advice & Wealth Management		Asset Management		Annuities		Protection		Corporate & Other			Total Segments		Non-operating Revenue		Total
	(in millions)
Management and financial advice fees:
Asset management fees:
Retail	$	—	$	1,851	$	—	$	—	$	—		$	1,851	$	—	$	1,851
Institutional	—		495		—		—		—			495		—		495
Advisory fees	2,494		—		—		—		—			2,494		—		2,494
Financial planning fees	297		—		—		—		—			297		—		297
Transaction and other fees	362		202		57		8		—			629		—		629
Total management and financial advice fees	3,153		2,548		57		8		—			5,766		—		5,766

Distribution fees:
Mutual funds	765		289		—		—		—			1,054		—		1,054
Insurance and annuity	855		169		327		28		5			1,384		—		1,384
Other products	475		—		—		—		—			475		—		475
Total distribution fees	2,095		458		327		28		5			2,913		—		2,913

Other revenues	164		2		—		—		—			166		—		166
Total revenue from contracts with customers	5,412		3,008		384		36		5			8,845		—		8,845

Revenue from other sources ⁽¹⁾	252		64		2,115		947		1,232			4,610		154		4,764
Total segment gross revenues	5,664		3,072		2,499		983		1,237			13,455		154		13,609

Less: Banking and deposit interest expense	48		—		—		—		3			51		—		51
Total segment net revenues	5,616		3,072		2,499		983		1,234			13,404		154		13,558

Less: intersegment revenues	953		47		351		62		(2		)	1,411		15		1,426
Total net revenues	$	4,663	$	3,025	$	2,148	$	921	$	1,236		$	11,993	$	139	$	12,132

The Company earns revenue for performing asset management services for retail and institutional clients. The revenue is earned based on a fixed or tiered rate applied, as a percentage, to assets under management. Assets under management vary with market fluctuations and client behavior. The asset management performance obligation is considered a series of distinct services that are substantially the same and are satisfied each day over the contract term. Asset management fees are accrued, invoiced and collected on a monthly or quarterly basis.

The Company’s asset management contracts for Open Ended Investment Companies (“OEICs”) in the UK and Société d'Investissement à Capital Variable (“SICAVs”) in Europe include performance obligations for asset management and fund distribution services. The amounts received for these services are reported as management and financial advice fees. The revenue recognition pattern is the same for both performance obligations as the fund distribution services revenue is variably constrained due to factors outside the Company’s control including market volatility and client behavior (such as how long clients hold their investment) and not recognized until assets under management are known.

The Company may also earn performance-based management fees on institutional accounts, hedge funds, collateralized loan obligations (“CLOs”), OEICs, SICAVs and property funds based on a percentage of account returns in excess of either a benchmark index or a contractually specified level. This revenue is variable and impacted primarily by the performance of the assets being managed compared to the benchmark index or contractually specified level. The revenue is not recognized until it is probable that a significant reversal will not occur. Performance-based management fees are invoiced on a quarterly or annual basis.

The Company earns revenue for performing investment advisory services for certain brokerage customer’s discretionary and non-discretionary managed accounts. The revenue is earned based on a contractual fixed rate applied, as a percentage, to the market value of assets held in the account. The investment advisory performance obligation is considered a series of distinct services that are substantially the same and are satisfied each day over the contract term. Advisory fees are accrued daily and invoiced or charged on a monthly or quarterly basis.

The Company earns revenue for providing financial plans to its clients. The revenue earned for each financial plan is either a fixed fee (received monthly, quarterly or annually) or a variable fee (received monthly or quarterly) based on a contractual fixed rate applied, as a percentage, to assets held in a client’s investment advisory account. The financial planning fee is based on the complexity of a client’s financial and life situation and his or her advisor’s experience. The performance obligation is satisfied at the time the financial plan is delivered to the customer. The Company records a contract liability for the unearned revenue when cash is received before the plan is delivered. The financial plan contracts with clients are annual contracts. Amounts recorded as a contract liability are recognized as revenue when the financial plan is delivered, which occurs within the annual contract period.

For variable fee arrangements, revenue is recognized for cash that has been received when the financial plan is delivered. The amount received after the plan is delivered is variably constrained due to factors outside the Company’s control including market volatility and client behavior. The revenue is recognized when it is probable that a significant reversal will not occur that is generally each month or quarter end as the advisory account balance uncertainty is resolved.

The Company pays sales commissions to advisors when a new financial planning contract is obtained or when an existing contract is renewed. The sales commissions paid to the advisors prior to financial plan delivery are considered costs to obtain a contract with a customer and are initially capitalized. When the performance obligation to deliver the financial plan is satisfied, the commission is recognized as distribution expense. Capitalized costs to obtain these contracts are reported in other assets in the Consolidated Balance Sheets, and were $116 million and $112 million as of December 31, 2019 and 2018, respectively.

The Company earns revenue for providing customer support, shareholder and administrative services (including transfer agent services) for affiliated mutual funds and networking, sub-accounting and administrative services for unaffiliated mutual funds. The Company also receives revenue for providing custodial services and account maintenance services on brokerage and retirement accounts that are not included in an advisory relationship. Transfer agent and administrative revenue is earned based on either a fixed rate applied, as a percentage, to assets under management or an annual fixed fee for each fund position. Networking and sub-accounting revenue is earned based on either an annual fixed fee for each account or an annual fixed fee for each fund position. Custodial and account maintenance revenue is generally earned based on a quarterly or annual fixed fee for each account. Each of the customer support and administrative services performance obligations are considered a series of distinct services that are substantially the same and are satisfied each day over the contract term. Transaction and other fees (other than custodial service fees) are invoiced or charged to brokerage accounts on a monthly or quarterly basis. Custodial service fees are invoiced or charged to brokerage accounts on an annual basis. Contract liabilities for custodial service fees, which are included in other liabilities in the Consolidated Balance Sheets, were nil as of both December 31, 2019 and 2018.

The Company earns revenue for selling affiliated and unaffiliated mutual funds, fixed and variable annuities and insurance products. The performance obligation is satisfied at the time of each individual sale. A portion of the revenue is based on a fixed rate applied, as a percentage, to amounts invested at the time of sale. The remaining revenue is recognized over the time the client owns the investment or holds the contract and is generally earned based on a fixed rate applied, as a percentage, to the net asset value of the fund, or the value of the insurance policy or annuity contract. The ongoing revenue is not recognized at the time of sale because it is variably constrained due to factors outside the Company’s control including market volatility and client behavior (such as how long

The Company earns revenue for providing unaffiliated partners an opportunity to educate the Company’s advisors or to support availability and distribution of their products on the Company’s platforms. These payments allow the outside parties to train and support the advisors, explain the features of their products and distribute marketing and educational materials, and support trading and operational systems necessary to enable the Company’s client servicing and production distribution efforts. The Company earns revenue for placing and maintaining unaffiliated fund partners and insurance companies’ products on the Company’s sales platform (subject to the Company’s due diligence standards). The revenue is primarily earned based on a fixed fee or a fixed rate applied, as a percentage, to the market value of assets invested. These performance obligations are considered a series of distinct services that are substantially the same and are satisfied each day over the contract term. These fees are invoiced and collected on monthly basis.

The Company earns revenue for selling unaffiliated alternative products. The performance obligation is satisfied at the time of each individual sale. A portion of the revenue is based on a fixed rate applied, as a percentage, to amounts invested at the time of sale. The remaining revenue is recognized over the time the client owns the investment and is earned generally based on a fixed rate applied, as a percentage, to the market value of the investment. The ongoing revenue is not recognized at the time of sale because it is variably constrained due to factors outside the Company’s control including market volatility and client behavior (such as how long clients hold their investment). The revenue will not be recognized until it is probable that a significant reversal will not occur.

The Company earns revenue from brokerage clients for the execution of requested trades. The performance obligation is satisfied at the time of trade execution and amounts are received on the settlement date. The revenue varies for each trade based on various factors that include the type of investment, dollar amount of the trade and how the trade is executed (online or broker assisted).

The Company earns revenue for placing clients’ deposits in its brokerage sweep program with third-party banks. The amount received from the third-party banks is impacted by short-term interest rates. The performance obligation with the financial institutions that participate in the sweep program is considered a series of distinct services that are substantially the same and are satisfied each day over the contract term. The revenue is earned daily and settled monthly based on a rate applied, as a percentage, to the deposits placed.

The Company earns revenue from fees charged to franchise advisors for providing various services the advisors need to manage and grow their practices. The primary services include: licensing of intellectual property and software, compliance supervision, insurance coverage, technology services and support, consulting and other services. The services are either provided by the Company or third- party providers. The Company controls the services provided by third parties as it has the right to direct the third parties to perform the services, is primarily responsible for performing the services and sets the prices the advisors are charged. The Company recognizes revenue for the gross amount of the fees received from the advisors. The fees are primarily collected monthly as a reduction of commission payments.

Intellectual property and software licenses, along with compliance supervision, insurance coverage, and technology services and support are primarily earned based on a monthly fixed fee. These services are considered a series of distinct services that are substantially the same and are satisfied each day over the contract term. The consulting and other services performance obligations are satisfied as the services are delivered and revenue is earned based upon the level of service requested. Prior to the implementation of the revenue recognition standard, fees received from the advisors for software licenses, compliance supervision, technology services and support, consulting, and other services were recorded as a reduction to the Company’s expenses to provide the services and totaled $103 million for the year ended December 31, 2017.