TD Ameritrade 2018 Annual Report

53 TD AMERITRADE HOLDING CORPORATION CONSOLIDATED STATEMENTS OF INCOME For the Years Ended September 30, 2018, 2017 and 2016 2018 2017 2016 (In millions, except per share amounts) Revenues: Transaction-based revenues: Commissions and transaction fees . . . . . . . . . . . . . . . . . . . $ 1,969 $ 1,384 $ 1,372 Asset-based revenues: Bank deposit account fees . . . . . . . . . . . . . . . . . . . . . . . . . 1,541 1,107 926 Net interest revenue . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,272 690 595 Investment product fees . . . . . . . . . . . . . . . . . . . . . . . . . . . 557 423 374 Total asset-based revenues . . . . . . . . . . . . . . . . . . . . . . 3,370 2,220 1,895 Other revenues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 113 72 60 Net revenues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,452 3,676 3,327 Operating expenses: Employee compensation and benefits . . . . . . . . . . . . . . . . . 1,555 962 839 Clearing and execution costs . . . . . . . . . . . . . . . . . . . . . . . . 189 149 136 Communications. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 179 131 137 Occupancy and equipment costs . . . . . . . . . . . . . . . . . . . . . 302 181 171 Depreciation and amortization . . . . . . . . . . . . . . . . . . . . . . . 142 102 92 Amortization of acquired intangible assets . . . . . . . . . . . . . 141 79 86 Professional services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 303 260 178 Advertising . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 293 254 260 Other. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 350 92 110 Total operating expenses. . . . . . . . . . . . . . . . . . . . . . . . 3,454 2,210 2,009 Operating income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,998 1,466 1,318 Other expense: Interest on borrowings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 99 71 53 Loss on sale of investments . . . . . . . . . . . . . . . . . . . . . . . . . 11 — — Other. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 1 — Total other expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . 111 72 53 Pre-tax income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,887 1,394 1,265 Provision for income taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . 414 522 423 Net income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,473 $ 872 $ 842 Earnings per share — basic . . . . . . . . . . . . . . . . . . . . . . . . . . $ 2.60 $ 1.65 $ 1.59 Earnings per share — diluted . . . . . . . . . . . . . . . . . . . . . . . . . $ 2.59 $ 1.64 $ 1.58 Weighted average shares outstanding — basic. . . . . . . . . . . . 567 529 531 Weighted average shares outstanding — diluted . . . . . . . . . . 569 531 534 Dividends declared per share . . . . . . . . . . . . . . . . . . . . . . . . . $ 0.84 $ 0.72 $ 0.68 See notes to consolidated financial statements.