eTrade 2006 Annual Report Download - page 20

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ITEM 6. SELECTED CONSOLIDATED FINANCIAL DATA
(Dollars in millions, shares in thousands, except per share and per trade amounts):
Year Ended December 31, Variance
2006 2005 2004 2003 2002 2006 vs. 2005
Results of Operations:(1)
Total net revenue $ 2,420.3 $ 1,703.8 $ 1,482.9 $ 1,342.7 $ 1,261.7 42 %
Facility restructuring and other exit
activities(2) $ (28.5) $ 30.0 $ (15.7) $ (134.2) $ (15.4) *
Gain (loss) on sale and impairment of
investments $ 70.8 $ 83.1 $ 128.1 $ 147.9 $ (20.3) (15)%
Income (loss) from continuing
operations(3) $ 626.8 $ 446.2 $ 381.8 $ 200.5 $ 119.0 40 %
Cumulative effect of accounting
changes(4) $ — $ 1.6 $ — $ — $ (293.7) *
Net income (loss) $ 628.9 $ 430.4 $ 380.5 $ 203.0 $ (186.4) 46 %
Basic earnings per share from
continuing operations $ 1.49 $ 1.20 $ 1.04 $ 0.56 $ 0.33 24 %
Diluted earnings per share from
continuing operations $ 1.44 $ 1.16 $ 0.99 $ 0.55 $ 0.33 24 %
Basic net earnings (loss) per share $ 1.49 $ 1.16 $ 1.04 $ 0.57 $ (0.52) 28 %
Diluted net earnings (loss) per share $ 1.44 $ 1.12 $ 0.99 $ 0.55 $ (0.52) 29 %
Weighted average shares—basic 421,127 371,468 366,586 358,320 355,090 13 %
Weighted average shares—diluted(5) 436,357 384,630 405,389 367,361 361,051 13 %
* Percentage not meaningful.
(1) No cash dividends have been declared in any of the periods presented.
(2) Expenses are presented in parentheses.
(3) In 2005, we exited the professional proprietary and agency trading businesses and completed the sale of E*TRADE Consumer Finance
Corporation (“Consumer Finance Corporation”). In 2004, we completed the sale of substantially all of the assets and liabilities of
E*TRADE Access, Inc. (“E*TRADE Access”). We have reflected the results of these operations as discontinued operations for all
periods presented.
(4) In 2005, we recorded a credit of $1.6 million, net of tax, as a cumulative effect of accounting change, to reflect the amount by which
compensation expense would have been reduced in periods prior to adoption of SFAS No. 123(R) for restricted stock awards outstanding
on July 1, 2005. In 2002, impairment of goodwill that was identified upon adoption of SFAS No. 142, Goodwill and Other Intangible
Assets is reported as a cumulative effect of accounting change.
(5) For 2004, diluted earnings per share is calculated using the “if converted” method, which includes the additional dilutive impact
assuming conversion of the Company’s subordinated convertible debt. Under the “if converted” method, the per share numerator
excludes the interest expense and related amortization of offering costs from the convertible debt, net of tax, of $20.0 million. The
denominator includes the shares issuable from the assumed conversion of the convertible debt of 25.8 million. For all other periods
presented, the “if converted” method is not used as its effect would be anti-dilutive.
17