eTrade 2008 Annual Report Download - page 91

E*TRADE FINANCIAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF INCOME (LOSS)
(In thousands, except per share amounts)
Year Ended December 31,
2008 2007 2006
Revenue:
Operating interest income $ 2,469,940 $ 3,523,055 $ 2,750,311
Operating interest expense (1,201,934) (1,939,456) (1,364,796)
Net operating interest income 1,268,006 1,583,599 1,385,515
Commission 515,551 663,642 597,076
Fees and service charges 199,956 230,567 219,877
Principal transactions 84,882 102,180 110,136
Gain (loss) on loans and securities, net (195,483) (2,465,474) 21,200
Other revenue 52,684 47,212 34,842
Total non-interest income (expense) 657,590 (1,421,873) 983,131
Total net revenue 1,925,596 161,726 2,368,646
Provision for loan losses 1,583,666 640,078 44,970
Operating expense:
Compensation and benefits 383,385 434,785 428,944
Clearing and servicing 185,082 270,199 244,343
Advertising and market development 175,250 138,675 106,016
Communications 96,792 98,347 102,988
Professional services 94,070 99,193 90,140
Occupancy and equipment 85,766 85,189 76,879
Depreciation and amortization 82,483 83,198 71,191
Amortization of other intangibles 35,746 40,472 46,206
Impairment of goodwill — 101,208 —
Facility restructuring and other exit activities 29,502 27,183 22,864
Other 122,139 195,384 129,790
Total operating expense 1,290,215 1,573,833 1,319,361
Income (loss) before other income (expense), income tax expense (benefit) and discontinued
operations (948,285) (2,052,185) 1,004,315
Other income (expense):
Corporate interest income 7,210 5,755 8,433
Corporate interest expense (362,160) (172,482) (152,496)
Gain (loss) on sales of investments, net (4,230) 35,980 70,796
Gain (loss) on early extinguishment of debt 10,084 (19) (1,179)
Equity in income of investments and venture funds 18,462 7,665 2,451
Total other income (expense) (330,634) (123,101) (71,995)
Income (loss) before income tax expense (benefit) and discontinued operations (1,278,919) (2,175,286) 932,320
Income tax expense (benefit) (469,535) (732,949) 305,389
Income (loss) from continuing operations (809,384) (1,442,337) 626,931
Discontinued operations, net of tax:
Income (loss) from discontinued operations 28,796 583 (838)
Gain on disposal of discontinued operations 268,798 — 2,766
Income from discontinued operations, net of tax 297,594 583 1,928
Net income (loss) $ (511,790) $(1,441,754) $ 628,859
Basic earnings (loss) per share from continuing operations $ (1.58) $ (3.40) $ 1.49
Basic earnings per share from discontinued operations 0.58 0.00 0.00
Basic net earnings (loss) per share $ (1.00) $ (3.40) $ 1.49
Diluted earnings (loss) per share from continuing operations $ (1.58) $ (3.40) $ 1.44
Diluted earnings per share from discontinued operations 0.58 0.00 0.00
Diluted net earnings (loss) per share $ (1.00) $ (3.40) $ 1.44
Shares used in computation of per share data:
Basic 509,862 424,439 421,127
Diluted 509,862 424,439 436,357
See accompanying notes to consolidated financial statements
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