eTrade 2001 Annual Report Download - page 50

(1) On January 22, 2001, the Company changed its fiscal year end from September 30 to December 31; accordingly, results have
been separately disclosed for the three-month transition period ended December31, 2000.
(2) In fiscal year 2001, the Company announced a restructuring plan. See Note 3 to the Consolidated Financial Statements for a
discussion of the restructuring.
(3) In the year ended December 31, 2001, the Company recorded an extraordinary gain on the early extinguishment of the
Company’ s 6% convertible subordinated notes in share exchanges and repurchases.
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offset by extraordinary losses on the early redemption of adjustable and fixed rate advances from the Federal Home Loan Bank
of Atlanta (“FHLB”). In the three months ended December 31, 2000, a cumulative effect of a change in accounting principle
resulted from the implementation by E*TRADE Group of Statement of Financial Accounting Standards (“SFAS”) No.133,
Accounting for Derivative Instruments and Hedging Activities , which requires that all derivatives be recorded on the balance
sheet at fair value, with the initial application reported as the cumulative effect of a change in accounting principle. In fiscal year
2000, the cumulative effect of change in accounting principle resulted from the implementation by E*TRADE Financial
Corporation (“ETFC”) of Statement of Position 98-5 , Reporting on the Cost of Start-Up Activities, which requires that the cost
of start-up activities be expensed as incurred rather than capitalized, with the initial application reported as the cumulative effect
of a change in accounting principle. In fiscal year 1999, ETFC redeemed all of its outstanding debt. ETFC wrote off both the
related premium and the remaining discount as an extraordinary loss on the early extinguishment of debt, totaling approximately
$2.0 million, net of tax.
The selected consolidated financial data should be read in conjunction with “Item 7. Management’ s Discussion and Analysis of
Financial Condition and Results of Operations”, and “Item 8. Consolidated Financial Statements and Supplementary Data.”
Item7.Management’s Discussion and Analysis of Financial Condition and Results of Operations
Forward-Looking Statements
Statements made in this document, other than statements of historical information, are forward looking statements that are made
pursuant to the safe harbor provisions of Section 21E of the Securities Exchange Act of 1934. These forward looking statements may
sometimes be identified by words such as “expect”, “may”, “looking forward”, “we plan”, “we believe”, “are planned”, “could
have”, “could be”, and “currently anticipate”. Although we believe these statements, as well as other oral and written
forward-looking statements made by or on behalf of E*TRADE Group, Inc. from time to time, to be true and reasonable, we can give
no assurance that these plans, intentions or expectations will be achieved. Actual results, performance or achievements could differ
materially from those contemplated, expressed or implied by the forward-looking statements. Important factors that could cause
actual results to differ materially from our forward looking statements are set forth in our other filings with the Securities and
Exchange Commission and in this document under the heading “Risk Factors”, beginning on page 70 and in this section captioned
“Management’s Discussion and Analysis of Financial Condition and Results of Operations”. We caution that the risks and factors
discussed below and in such filings are not exclusive. We do not undertake to update any forward looking statement that may be
made from time to time by or on behalf of E*TRADE Financial.
2002. EDGAR Online, Inc.