
	Year Ended December 31, 2023
	Advice & Wealth Management		Asset Management		Retirement & Protection Solutions		Corporate & Other		Total Segments		Non-operating Revenue		Total
	(in millions)
Management and financial advice fees:
Asset management fees:
Retail	$	—	$	1,959	$	—	$	—	$	1,959	$	—	$	1,959
Institutional	—		677		—		—		677		—		677
Advisory fees	4,687		—		—		—		4,687		—		4,687
Financial planning fees	426		—		—		—		426		—		426
Transaction and other fees	372		195		56		—		623		—		623
Total management and financial advice fees	5,485		2,831		56		—		8,372		—		8,372
Distribution fees:
Mutual funds	723		209		—		—		932		—		932
Insurance and annuity	895		154		324		—		1,373		—		1,373
Off-balance sheet brokerage cash	316		—		—		—		316		—		316
Other products	339		—		—		—		339		—		339
Total distribution fees	2,273		363		324		—		2,960		—		2,960
Other revenues	227		20		—		—		247		—		247
Total revenue from contracts with customers	7,985		3,214		380		—		11,579		—		11,579
Revenue from other sources (1)	1,994		64		3,096		553		5,707		160		5,867
Total segment gross revenues	9,979		3,278		3,476		553		17,286		160		17,446
Banking and deposit interest expense	(561)		—		—		(20)		(581)		—		(581)
Total segment net revenues	9,418		3,278		3,476		533		16,705		160		16,865
Elimination of intersegment revenues	(847)		(79)		(411)		19		(1,318)		(12)		(1,330)
Total net revenues	$	8,571	$	3,199	$	3,065	$	552	$	15,387	$	148	$	15,535


	Year Ended December 31, 2022
	Advice & Wealth Management		Asset Management		Retirement & Protection Solutions		Corporate & Other		Total Segments		Non-operating Revenue		Total
	(in millions)
Management and financial advice fees:
Asset management fees:
Retail	$	—	$	2,179	$	—	$	—	$	2,179	$	—	$	2,179
Institutional	—		678		—		—		678		—		678
Advisory fees	4,526		—		—		—		4,526		—		4,526
Financial planning fees	410		—		—		—		410		—		410
Transaction and other fees	372		210		59		—		641		—		641
Total management and financial advice fees	5,308		3,067		59		—		8,434		—		8,434
Distribution fees:
Mutual funds	741		231		—		—		972		—		972
Insurance and annuity	845		166		348		—		1,359		—		1,359
Off-balance sheet brokerage cash	324		—		—		—		324		—		324
Other products	339		—		—		—		339		—		339
Total distribution fees	2,249		397		348		—		2,994		—		2,994
Other revenues	211		10		—		—		221		—		221
Total revenue from contracts with customers	7,768		3,474		407		—		11,649		—		11,649
Revenue from other sources (1)	769		32		2,717		484		4,002		14		4,016
Total segment gross revenues	8,537		3,506		3,124		484		15,651		14		15,665
Banking and deposit interest expense	(76)		—		—		(5)		(81)		—		(81)
Total segment net revenues	8,461		3,506		3,124		479		15,570		14		15,584
Elimination of intersegment revenues	(847)		(52)		(420)		3		(1,316)		(10)		(1,326)
Total net revenues	$	7,614	$	3,454	$	2,704	$	482	$	14,254	$	4	$	14,258


	Year Ended December 31, 2021
	Advice & Wealth Management		Asset Management		Retirement & Protection Solutions		Corporate & Other		Total Segments		Non-operating Revenue		Total
	(in millions)
Management and financial advice fees:
Asset management fees:
Retail	$	—	$	2,309	$	—	$	—	$	2,309	$	—	$	2,309
Institutional	—		645		—		—		645		—		645
Advisory fees	4,539		—		—		—		4,539		—		4,539
Financial planning fees	386		—		—		—		386		—		386
Transaction and other fees	372		223		70		—		665		—		665
Total management and financial advice fees	5,297		3,177		70		—		8,544		—		8,544
Distribution fees:
Mutual funds	858		276		—		—		1,134		—		1,134
Insurance and annuity	994		195		409		—		1,598		—		1,598
Off-balance sheet brokerage cash	60		—		—		—		60		—		60
Other products	341		—		—		—		341		—		341
Total distribution fees	2,253		471		409		—		3,133		—		3,133
Other revenues	196		4		—		—		200		—		200
Total revenue from contracts with customers	7,746		3,652		479		—		11,877		—		11,877
Revenue from other sources (1)	287		30		2,751		489		3,557		(454)		3,103
Total segment gross revenues	8,033		3,682		3,230		489		15,434		(454)		14,980
Banking and deposit interest expense	(12)		—		—		(2)		(14)		—		(14)
Total segment net revenues	8,021		3,682		3,230		487		15,420		(454)		14,966
Elimination of intersegment revenues	(1,043)		(50)		(478)		(2)		(1,573)		(16)		(1,589)
Total net revenues	$	6,978	$	3,632	$	2,752	$	485	$	13,847	$	(470)	$	13,377

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 United Kingdom (“U.K.”) 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 and other 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 billed on a monthly basis on the prior month end assets.

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) based on a contractual fixed rate applied, as a percentage, to the prior month end 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 and is generally each month 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, and were $135 million and $129 million as of December 31, 2023 and 2022, 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.

The Company earns revenue for providing trade execution services to franchise advisors. The trade execution performance obligation is satisfied at the time of each trade and the revenue is primarily earned based on a fixed fee per trade. These fees are invoiced and collected on a semi-monthly basis.

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 clients hold their investment, insurance policy or annuity contract). This ongoing revenue may be recognized for many years after the initial sale. The revenue will not be recognized until it is probable that a significant reversal will not occur.

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 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 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 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.

The Company has an asset of $25 million and $33 million as of December 31, 2023 and 2022, respectively, related to the transition of investment advisory services under an arrangement with BMO Financial Group for clients that elected to transfer U.S. retail and institutional assets to the Company.