eTrade 2008 Annual Report Download - page 143

The Company did not repurchase any shares of common stock in 2008. In 2007, the Company repurchased a
total of 7.2 million shares of common stock for an aggregate $148.6 million under the April 2007 Plan and the
December 2004 Plan. As of December 31, 2008 and 2007, the Company had approximately $158.5 million
available to purchase additional shares under the April 2007 Plan.
NOTE 19—EARNINGS (LOSS) PER SHARE
The following table is a reconciliation of basic and diluted earnings (loss) per share (dollars and shares in
thousands, except per share amounts):
Year Ended December 31,
2008 2007 2006
Basic:
Numerator:
Income (loss) from continuing operations $(809,384) $(1,442,337) $626,931
Income from discontinued operations, net of tax 297,594 583 1,928
Net income (loss) $(511,790) $(1,441,754) $628,859
Denominator:
Basic weighted-average shares outstanding 509,862 424,439 421,127
Diluted:
Numerator:
Net income (loss) $(511,790) $(1,441,754) $628,859
Denominator:
Basic weighted-average shares outstanding 509,862 424,439 421,127
Effect of dilutive securities:
Weighted-average options and restricted stock issued to
employees — — 13,358
Weighted-average warrants and contingent shares outstanding — — 248
Weighted-average mandatory convertible notes — — 1,624
Diluted weighted-average shares outstanding 509,862 424,439 436,357
Per share:
Basic earnings (loss) per share:
Earnings (loss) per share from continuing operations $ (1.58) $ (3.40) $ 1.49
Earnings per share from discontinued operations 0.58 0.00 0.00
Net earnings (loss) per share $ (1.00) $ (3.40) $ 1.49
Diluted earnings (loss) per share:
Earnings (loss) per share from continuing operations $ (1.58) $ (3.40) $ 1.44
Earnings per share from discontinued operations 0.58 0.00 0.00
Net earnings (loss) per share $ (1.00) $ (3.40) $ 1.44
The Company excluded from the calculations of diluted earnings (loss) per share 37.4 million and
21.0 million shares of stock options, restricted stock awards and restricted stock units for the years ended
December 31, 2008 and 2007, respectively. Of the excluded shares, 1.4 million and 9.6 million shares were anti-
dilutive because of the Company’s net loss for the years ended December 31, 2008 and 2007, respectively.
Additionally, for the year ended December 31, 2007, there were 46.7 million shares that had not been issued in
connection with the Citadel Investment of which 3.9 million shares were anti-dilutive because of the Company’s
net loss for the period. The Company excluded from the calculations of diluted earnings per share 5.3 million
shares of stock options that would have been anti-dilutive for the year ended December 31, 2006.
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