eTrade 2005 Annual Report Download - page 196

Table of Contents
The Company evaluates the performance of its segments based on segment contribution (net revenues less expenses excluding
interest.) All corporate overhead, administrative and technology charges are allocated to segments either in proportion to their
respective direct costs or based upon specific operating criteria. Financial information for the Company’s reportable segments is
presented in the following tables (in thousands):
Year Ended December31, 2005
Retail
Institutional
Eliminations
(1)
Total
Revenues:
Commissions
$
339,654
$
119,180
$
—
$
458,834
Principal transactions
—
99,175
161
99,336
Gain on sales of loans and securities, net
63,705
35,153
—
98,858
Service charges and fees
116,102
19,212
—
135,314
Other revenues
112,836
10,383
(28,800
)
94,419
Interest income
685,067
1,395,769
(430,572
)
1,650,264
Interest expense
(239,943
)
(969,631
)
430,410
(779,164
)
Net interest income
445,124
426,138
(162
)
871,100
Provision for loan losses
—
(54,016
)
—
(54,016
)
Net interest income after provision for loan
losses
445,124
372,122
(162
)
817,084
Total revenues
1,077,421
655,225
(28,801
)
1,703,845
Expense excluding interest:
Compensation and benefits
232,494
148,309
—
380,803
Occupancy and equipment
57,869
11,220
—
69,089
Communications
71,693
10,792
—
82,485
Professional services
55,081
20,156
—
75,237
Commissions, clearance and floor brokerage
42,715
106,347
(8,256
)
140,806
Advertising and market development
96,918
9,017
—
105,935
Servicing and other banking expenses
6,166
66,705
(20,545
)
52,326
Fair value adjustments of financial
derivatives
—
4,892
—
4,892
Depreciation and amortization
60,604
14,377
—
74,981
Amortization of other intangibles
13,894
29,871
—
43,765
Facility restructuring and other exit
activities
(32,754
)
2,737
—
(30,017
)
Other
13,984
39,767
—
53,751
Total expenses excluding interest
618,664
464,190
(28,801
)
1,054,053
Segment income
$
458,757
$
191,035
$
—
$
649,792
(1)
Reflects elimination of transactions between retail and institutional segments, which includes deposit transfer pricing, servicing and order flow rebates.
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