eTrade 2006 Annual Report Download - page 144

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NOTE 29—CONDENSED FINANCIAL INFORMATION (PARENT COMPANY ONLY)
The following presents the Parent’s condensed statement of income and comprehensive income, balance
sheet, and cash flows:
STATEMENT OF INCOME AND COMPREHENSIVE INCOME
(In thousands)
Year Ended December 31,
2006 2005 2004
Revenue:
Management fees from subsidiaries $ 181,621 $ 224,894 $318,772
Total net revenue 181,621 224,894 318,772
Expense excluding interest:
Compensation and benefits 139,056 130,081 124,208
Clearing and servicing (1,089) 206 (1,062)
Advertising and market development 9,036 13,498 6,154
Communications 25,455 18,973 17,949
Professional services 35,296 27,647 30,445
Depreciation and amortization 54,621 50,528 54,664
Occupancy and equipment 24,559 25,036 32,335
Facility restructuring and other exit activities 20,279 2,991 14,478
Intercompany allocations and charges (147,798) (120,598) (30,260)
Other 24,281 17,545 33,089
Total expense excluding interest 183,696 165,907 282,000
Income (loss) before other income (expense), income taxes, discontinued
operations and cumulative effect of accounting change (2,075) 58,987 36,772
Other income (expense):
Corporate interest income 2,617 2,265 740
Corporate interest expense (149,700) (71,510) (45,775)
Gain on sales and impairment of investments — 982 1,427
Loss on early extinguishment of debt (703) — (19,443)
Equity in income (loss) of investments and venture funds (989) 6,247 4,858
Total other income (expense) (148,775) (62,016) (58,193)
Loss before income taxes, discontinued operations and cumulative effect of
accounting change (150,850) (3,029) (21,421)
Income tax benefit (143,845) (10,806) (42,007)
Net income (loss) from continuing operations (7,005) 7,777 20,586
Gain from discontinued operations, net of tax 2,593 — —
Cumulative effect of accounting change, net of tax — 1,646 —
Equity in income of other consolidated subsidiaries 633,271 420,989 359,897
Net income 628,859 430,412 380,483
Other comprehensive loss (25,760) (34,513) (51,222)
Comprehensive income $ 603,099 $ 395,899 $329,261
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