eTrade 2008 Annual Report Download - page 153

Financial information for the Company’s reportable segments is presented in the following tables (dollars in
thousands):
Year Ended December 31, 2008
Retail Institutional Eliminations(1) Total
Revenue:
Operating interest income $1,532,653 $ 2,117,097 $(1,179,810) $ 2,469,940
Operating interest expense (702,946) (1,678,798) 1,179,810 (1,201,934)
Net operating interest income 829,707 438,299 — 1,268,006
Commission 514,736 815 — 515,551
Fees and service charges 200,726 8,422 (9,192) 199,956
Principal transactions — 84,882 — 84,882
Loss on loans and securities, net (78) (195,405) — (195,483)
Other revenue 38,463 14,271 (50) 52,684
Total non-interest income (expense) 753,847 (87,015) (9,242) 657,590
Total net revenue 1,583,554 351,284 (9,242) 1,925,596
Provision for loan losses — 1,583,666 — 1,583,666
Operating expense:
Compensation and benefits 285,768 97,617 — 383,385
Clearing and servicing 75,713 118,611 (9,242) 185,082
Advertising and market development 175,244 6 — 175,250
Communications 92,176 4,616 — 96,792
Professional services 57,666 36,404 — 94,070
Occupancy and equipment 81,364 4,402 — 85,766
Depreciation and amortization 66,863 15,620 — 82,483
Amortization of other intangibles 32,437 3,309 — 35,746
Facility restructuring and other exit activities 10,171 19,331 — 29,502
Other 98,086 24,053 — 122,139
Total operating expense 975,488 323,969 (9,242) 1,290,215
Segment income (loss) $ 608,066 $(1,556,351) $ — $ (948,285)
(1) Reflects elimination of transactions between retail and institutional segments, which includes deposit and customer payable transfer
pricing and order flow rebates.
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