eTrade 2001 Annual Report Download - page 156

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Amortization of deferred stock compensation for the year ended December 31, 2001 was $9.1 million.
19.ASSOCIATE BENEFIT PLANS
Effective January 1, 2001, the Company’ s Board of Directors adopted a Supplemental Executive Retirement Plan (the “SERP”), for
certain executive officers. The purpose of the SERP is to attract, retain and motivate certain executive officers of the Company who
provide valuable services to the Company and to provide those officers with flexibility to meet their retirement and estate planning
needs. Funding of the SERP by the Company is discretionary. Contributions to the SERP, if any, are due at the beginning of each fiscal
year and are deposited into a Rabbi Trust, to which the Company retains ownership until participant benefits vest and are distributed.
With the exception of the Company’ s Chief Executive Officer, whose benefits vest immediately, no portion of a participant’ s benefits
will become vested unless the individual has participated in the plan for at least five years. Fifty percent of participation benefits vest
after five years of participation in the SERP with the remaining benefits vesting over the next five years of participation. In January
2001, the Company made an additional contribution of $12.1 million to the SERP and recognized related compensation expense over
the vesting period for participating individuals. The Company recognized $24.5 million in compensation expense related to the SERP
during the year ended December 31, 2001, which includes the amounts actually contributed to the plan in fiscal year 2001 plus
amounts accrued for the vested portion of the January 1, 2002 contribution under the plan.
The Company has a 401(k) salary deferral program for eligible associates who have met certain service requirements. The Company
matches certain associate contributions; additional contributions to this plan are at the discretion of the Company. Total contribution
expense under this plan was $5.9 million for the year ended December 31, 2001, $0.6 million for the three months ended December
31, 2000, $3.3 million for the fiscal year ended September 30, 2000 and $1.6 million for the year ended September 30, 1999.
137
Table of Contents
20.INCOME (LOSS) PER SHARE
The following table sets forth the computation of the numerator and denominator used in the computation of basic and diluted income
(loss) per share (in thousands):
Year Ended December31,
2001
Three Months Ended December 31, 2000 Year Ended September30, 2000 Year Ended September30,
1999
Basic and Diluted Loss Per
Share Basic Income Per
Share Diluted Income Per
Share Basic Income PerShare Diluted Income
PerShare Basic and Diluted Loss Per
Share
Numerator:
Income (loss) before
cumulative effect of
accounting change and
extraordinary gain
(loss)
$ (270,801 ) $ 1,436 $ 1,436 $ 19,152 $ 19,152 $ (54,315 )
Premium on
redemption of trust
preferred securities (1)
— — — — — (410 )
Preferred stock
dividends
— — — — — (222 )
2002. EDGAR Online, Inc.