eTrade 2005 Annual Report Download - page 200

Table of Contents
Geographic Information
The Company operates in both U.S. and international markets. The Company’s international operations are conducted through offices
in Europe, Asia and Canada. The following information provides a reasonable representation of each region’s contribution to the
consolidated amounts (in thousands):
United
States
Europe
Asia
Canada
Total
Net revenues:
Year ended December31, 2005
$
1,496,204
$
80,505
$
71,683
$
55,453
$
1,703,845
Year ended December31, 2004
$
1,310,234
$
89,979
$
32,360
$
50,349
$
1,482,922
Year ended December31, 2003
$
1,220,774
$
67,815
$
10,384
$
43,743
$
1,342,716
Long-lived assets:
At December31, 2005
$
285,870
$
5,047
$
1,254
$
7,085
$
299,256
At December31, 2004
$
286,183
$
7,699
$
728
$
7,681
$
302,291
No single customer accounted for greater than 10% of gross revenues for 2005, 2004 and 2003.
NOTE 26—FAIR VALUE DISCLOSURE OF FINANCIAL INSTRUMENTS
The fair value of financial instruments whose estimated fair values were their carrying values are summarized as follows:
•
Cash and equivalents, cash and investments required to be segregated, brokerage receivables, net and brokerage payables
—Fair value is estimated to be carrying value.
•
Available-for-sale investment securities including mortgage-backed, trading securities and other investments
—Fair value is
estimated by using quoted market prices for most securities. For illiquid securities, market prices are estimated by obtaining
market price quotes on similar liquid securities and adjusting the price to reflect differences between the two securities, such as
credit risk, liquidity, term coupon, payment characteristics and other information.
•
FHLB stock
—Cost is considered to be a reasonable estimate of fair value because the FHLB has historically redeemed these
securities at cost.
•
Financial derivatives and off-balance instruments
—The fair value of financial derivatives and off-balance sheet instruments is
the amount the Company would pay or receive to terminate the agreement as determined from quoted market prices, which is
equal to the carrying value.
•
Commitments to purchase and originate loans
—The fair value is estimated by calculating the net present value of the
anticipated cash flows associated with IRLCs.
The fair value of financial instruments whose estimated fair values were different from their carrying values are summarized below (in
thousands):
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