TD Ameritrade 2018 Annual Report

38 Consolidated Statements of Income Data The following table summarizes certain data from our Consolidated Statements of Income for analysis purposes (dollars in millions): Fiscal Year '18 vs. '17 % Change '17 vs. '16 % Change 2018 2017 2016 Revenues: Transaction-based revenues: Commissions and transaction fees . . . . . $ 1,969 $ 1,384 $ 1,372 42 % 1 % Asset-based revenues: Bank deposit account fees . . . . . . . . . . . . 1,541 1,107 926 39 % 20 % Net interest revenue. . . . . . . . . . . . . . . . . 1,272 690 595 84 % 16 % Investment product fees. . . . . . . . . . . . . . 557 423 374 32 % 13 % Total asset-based revenues . . . . . . . . . 3,370 2,220 1,895 52 % 17 % Other revenues . . . . . . . . . . . . . . . . . . . . . . . 113 72 60 57 % 20 % Net revenues . . . . . . . . . . . . . . . . . . . . 5,452 3,676 3,327 48 % 10 % Operating expenses: Employee compensation and benefits . . . . . 1,555 962 839 62 % 15 % Clearing and execution costs . . . . . . . . . . . . 189 149 136 27 % 10 % Communications . . . . . . . . . . . . . . . . . . . . . 179 131 137 37 % (4)% Occupancy and equipment costs . . . . . . . . . 302 181 171 67 % 6 % Depreciation and amortization. . . . . . . . . . . 142 102 92 39 % 11 % Amortization of acquired intangible assets . 141 79 86 78 % (8)% Professional services . . . . . . . . . . . . . . . . . . 303 260 178 17 % 46 % Advertising. . . . . . . . . . . . . . . . . . . . . . . . . . 293 254 260 15 % (2)% Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 350 92 110 280 % (16)% Total operating expenses. . . . . . . . . . . . . 3,454 2,210 2,009 56 % 10 % Operating income . . . . . . . . . . . . . . . . . . . . . . 1,998 1,466 1,318 36 % 11 % Other expense: Interest on borrowings . . . . . . . . . . . . . . . . . 99 71 53 39 % 34 % Loss on sale of investments . . . . . . . . . . . . . 11 — — N/A N/A Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 1 — 0 % N/A Total other expense . . . . . . . . . . . . . . . . . 111 72 53 54 % 36 % Pre-tax income . . . . . . . . . . . . . . . . . . . . . . . . 1,887 1,394 1,265 35 % 10 % Provision for income taxes. . . . . . . . . . . . . . . 414 522 423 (21)% 23 % Net income . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,473 $ 872 $ 842 69 % 4 % Other information: Effective income tax rate . . . . . . . . . . . . . . . . 21.9% 37.4% 33.4% Average debt outstanding . . . . . . . . . . . . . . . . $ 2,743 $ 2,093 $ 1,748 31 % 20 % Effective interest rate incurred on borrowings . . . . . . . . . . . . . . . . . . . . . . . . . 3.59% 3.40% 3.03%