eTrade 2002 Annual Report Download - page 102

Table of Contents
Index to Financial Statements
E*TRADE GROUP, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
1.ORGANIZATION AND BASIS OF PRESENTATION
Organization
E*TRADE Group, Inc. (the “Company”, “Parent” or “E*TRADE”), is a financial services holding company, whose subsidiaries provide
brokerage and banking services. These subsidiaries include:
Brokerage:
E*TRADE Securities, LLC (“E*TRADE Securities”), formerly E*TRADE Securities, Incorporated, a securities broker-dealer;
E*TRADE Clearing LLC (“E*TRADE Clearing”), formerly E*TRADE Institutional Securities, Inc., the clearing firm for E*TRADE Securities
beginning September 3, 2002;
Dempsey and Company, LLC (“Dempsey”), a specialist and market-making firm; and
Tradescape Securities, LLC, a direct access brokerage firm for active online traders, together with Tradescape Technologies, LLC, a high-speed
provider of direct access trading software, technology and network services and Momentum Securities, LLC, a brokerage firm for individual
professional traders (collectively, “E*TRADE Professional Trading”).
Banking:
E*TRADE Bank (the “Bank”), a federally chartered savings bank that provides deposit accounts insured by Federal Deposit Insurance
Corporation (“FDIC”) to customers nationwide;
E*TRADE Financial Corporation (“ETFC”), a provider of financial services and the holding company of the Bank;
E*TRADE Access, Inc. (“E*TRADE Access”), an independent network of automated teller machines (“ATMs”) in the United States and
Canada;
E*TRADE Mortgage Corporation (“E*TRADE Mortgage”), a direct-to-consumer mortgage loan originator;
Ganis Credit Corporation (“Ganis”), a consumer recreational vehicle, marine and other consumer loan originator;
E*TRADE Re, LLC, a provider of reinsurance and financial services and the holding Company of ETFC and
E*TRADE Global Asset Management, Inc. (“ETGAM”), a registered broker-dealer and investment advisor that manages asset portfolios for
the Parent and the Bank.
Basis of Presentation
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 December 31, 2000. Fiscal 2002 and fiscal 2001 refer to the twelve months ended
December 31 and fiscal 2000 refers to the twelve months ended September 30.
The consolidated financial statements of the Company include the accounts of the Parent and its majority-owned subsidiaries. Intercompany
accounts and transactions are eliminated in consolidation. Entities in which there is at least a 20% ownership or in which there are other
indicators of significant influence are generally accounted for by the equity method; those in which there is a less than 20% ownership and the
ability to exercise significant influence is not present are generally carried at cost.
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