eTrade 2001 Annual Report Download - page 56
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•
We acquired an additional 40% ownership interest in E*TRADE Germany in October 2000, increasing our investment to 100%,
for approximately 24.0 million Euros (approximately $20.2 million as of December 31, 2000) comprised of cash and common
shares. The acquisition of the remaining ownership percentage of E*TRADE Germany did not materially affect the results of
operations during the transition period.
•
In November 2000, we sold our ownership interest in E*TRADE @ Net Bourse S.A. for approximately 80.5 million Euros
(approximately $68.0 million). No gain or loss resulted from this transaction.
•
On October 16, 2000, Wit Soundview Group, Inc. (“Wit”) completed the acquisition of E*OFFERING Corp.
(“E*OFFERING”), a full service, Internet-based investment bank in which we held a 23.6% equity interest. Under the terms of
the agreement, we received common shares and warrants to purchase shares of Wit common stock, as well as the right to elect
one representative to Wit’ s Board of Directors. Concurrent with this agreement, we entered into certain other collateral
arrangements whereby we acquired Wit’ s retail brokerage business and received shares of Wit common stock and a warrant to
purchase shares of Wit common stock as consideration of our entering into a strategic alliance agreement with Wit. This
agreement was subsequently terminated in fiscal 2001. See Note 8 to the Consolidated Financial Statements.
•
On October 1, 2000, we adopted SFAS 133, Accounting for Derivative Instruments and Hedging Activities . In addition to the
fair value adjustment for warrants recognized in conjunction with the Wit transaction of $6.3 million, we recognized
non-operating losses of $1.7 million (pre-tax) reflecting the ineffective portions of changes in the fair value of cash flow and fair
value hedges.
•
In December 2000, we instituted a $15 per quarter maintenance fee for low-balance, inactive accounts, which is reflected in
other revenues.
50
Table of Contents
Results of Operations
Year Ended December 31, 2001, Compared to Year Ended September 30, 2000, Compared to Year Ended September 30, 1999
Key Performance Indicators
The following tables set forth several key performance indicators used by management to measure our performance and in explaining
the results of our operations for the comparative three years ended December 31, 2001, September 30, 2000 and September 30, 1999:
Percentage Change
December31, 2001 September 30, 2000 September 30, 1999 2001
versus
2000
2000
versus
1999
2002. EDGAR Online, Inc.