eTrade 2007 Annual Report Download - page 3

Note 5—Operating Interest Income and Operating Interest Expense ...................... 103
Note 6—Available-for-Sale Mortgage-Backed and Investment Securities .................. 104
Note 7—Loans, Net ............................................................ 107
Note 8—Accounting for Derivative Financial Instruments and Hedging Activities ........... 109
Note 9— Property and Equipment, Net ............................................. 114
Note 10—Goodwill and Other Intangibles, Net ....................................... 114
Note 11—Other Assets .......................................................... 116
Note 12—Asset Securitization .................................................... 117
Note 13—Deposits ............................................................. 117
Note 14—Securities Sold Under Agreement to Repurchase and Other Borrowings ........... 119
Note 15—Corporate Debt ....................................................... 121
Note 16—Accounts Payable, Accrued and Other Liabilities ............................. 124
Note 17—Income Taxes ......................................................... 124
Note 18—Shareholders’ Equity ................................................... 127
Note 19—Earnings (Loss) per Share ............................................... 129
Note 20—Employee Share-Based Payments and Other Benefits ......................... 130
Note 21—Regulatory Requirements ............................................... 133
Note 22—Lease Arrangements ................................................... 134
Note 23—Commitments, Contingencies and Other Regulatory Matters .................... 135
Note 24—Segment and Geographic Information ...................................... 139
Note 25—Fair Value Disclosure of Financial Instruments .............................. 143
Note 26—Condensed Financial Information (Parent Company Only) ..................... 145
Note 27—Subsequent Events ..................................................... 148
Note 28—Quarterly Data (Unaudited) .............................................. 148
Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure .... 149
Item 9A. Controls and Procedures ........................................................... 149
Item 9B. Other Information ................................................................ 149
PART III
PART IV
Item 15. Exhibits and Financial Statement Schedules .......................................... 149
Exhibit Index ................................................................................ 150
Signatures .................................................................................. 155
Unless otherwise indicated, references to “the Company,” “We,” “Us,” “Our” and “E*TRADE” mean
E*TRADE Financial Corporation or its subsidiaries.
E*TRADE, E*TRADE Financial, E*TRADE Bank (“Bank”), ClearStation, Equity Edge, Equity Resource,
OptionsLink and the Converging Arrows logo are registered trademarks of E*TRADE Financial Corporation in the
United States and in other countries.
FORWARD-LOOKING STATEMENTS
This report contains forward-looking statements involving risks and uncertainties. These statements relate to our
future plans, objectives, expectations and intentions. These statements may be identified by the use of words such as
“expect,” “may,” “anticipate,” “intend,” “plan” and similar expressions. Our actual results could differ materially
from those discussed in these forward-looking statements, and we caution that we do not undertake to update these
statements. Factors that could contribute to our actual results differing from any forward-looking statements include
those discussed under “Risk Factors,” “Management’s Discussion and Analysis of Financial Condition and Results of
Operations” and elsewhere in this report. The cautionary statements made in this report should be read as being
applicable to all forward-looking statements wherever they appear in this report.
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