v2.4.0.6
Segment Information
 3 Months Ended
Mar. 31, 2013
Segment Information
9.   Segment Information

The Company structures its operating segments according to its clients and the services provided to those clients. The Company’s two reportable segments are Investor Services and Advisor Services. In the first quarter of 2013, the Company realigned its reportable segments as a result of organizational changes. The segment formerly reported as Institutional Services was renamed to Advisor Services. The Retirement Plan Services and Corporate Brokerage Services business units are now part of the Investor Services segment. Prior period segment information has been recast to reflect these organizational changes. The Investor Services segment provides retail brokerage and banking services to individual investors, retirement plan services, and corporate brokerage services. The Advisor Services segment provides custodial, trading, and support services to independent investment advisors, and retirement business services to independent retirement plan advisors and recordkeepers whose plan assets are held at Schwab Bank. Banking revenues and expenses are allocated to the Company’s two segments based on which segment services the client.

 

The Company evaluates the performance of its segments on a pre-tax basis, excluding items such as significant nonrecurring gains, impairment charges on non-financial assets, discontinued operations, extraordinary items, and significant restructuring and other charges. Segment assets and liabilities are not used for evaluating segment performance or in deciding how to allocate resources to segments. There are no revenues from transactions between the segments.

Financial information for the Company’s reportable segments is presented in the following table:

 

                                                                                               
     Investor Services     Advisor Services     Unallocated     Total  

Three Months Ended March 31,

    2013     2012     2013     2012     2013      2012     2013     2012  

Net Revenues:

                  

Asset management and administration fees

    $     387     $     341     $     165     $     142     $ —       $ 1     $ 552     $     484  

Net interest revenue

      413       384       56       50       —         —        469       434  

Trading revenue

      149       174       74       69       —         —        223       243  

Other

      42       32       14       15       —         (1 )      56       46  

Provision for loan losses

      (5 )      —        (1 )      —        —         —        (6 )      —   

Net impairment losses on securities

      (4 )      (17 )      —        (1 )      —         —        (4 )      (18 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

     

 

 

    

 

 

    

 

 

  

Total net revenues

      982       914       308       275       —         —        1,290       1,189  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

     

 

 

    

 

 

    

 

 

  

Expenses Excluding Interest

      751       690       208       186       —         —        959       876  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

     

 

 

    

 

 

    

 

 

  

Income before taxes on income

    $ 231     $ 224     $ 100     $ 89     $ —       $     —      $ 331     $ 313  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

     

 

 

    

 

 

    

 

 

  

Taxes on income

                   125       118  
               

 

 

    

 

 

  

Net Income

                 $     206     $ 195