eTrade 2009 Annual Report Download - page 100

E*TRADE FINANCIAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF LOSS
(In thousands, except per share amounts)
Year Ended December 31,
2009 2008 2007
Revenue:
Operating interest income $ 1,832,558 $ 2,469,940 $ 3,523,055
Operating interest expense (571,956) (1,201,934) (1,939,456)
Net operating interest income 1,260,602 1,268,006 1,583,599
Commissions 547,993 515,551 663,642
Fees and service charges 192,516 199,956 230,567
Principal transactions 88,053 84,882 102,180
Gains (losses) on loans and securities, net 169,106 (100,473) (2,296,735)
Other-than-temporary impairment (“OTTI”) (232,139) (95,010) (168,739)
Less: noncredit portion of OTTI recognized in other comprehensive loss (before tax) 143,044 — —
Net impairment (89,095) (95,010) (168,739)
Other revenues 47,841 52,684 47,212
Total non-interest income (expense) 956,414 657,590 (1,421,873)
Total net revenue 2,217,016 1,925,596 161,726
Provision for loan losses 1,498,112 1,583,666 640,078
Operating expense:
Compensation and benefits 366,232 383,385 434,785
Clearing and servicing 170,711 185,082 270,199
Advertising and market development 114,399 175,250 138,675
FDIC insurance premiums 94,258 31,258 20,200
Communications 84,381 96,792 98,347
Professional services 78,718 94,070 99,193
Occupancy and equipment 78,360 85,766 85,189
Depreciation and amortization 83,337 82,483 83,198
Amortization of other intangibles 29,737 35,746 40,472
Impairment of goodwill — — 101,208
Facility restructuring and other exit activities 20,652 29,502 27,183
Other operating expenses 122,544 90,881 175,184
Total operating expense 1,243,329 1,290,215 1,573,833
Loss before other income (expense), income tax benefit and discontinued operations (524,425) (948,285) (2,052,185)
Other income (expense):
Corporate interest income 860 7,210 5,755
Corporate interest expense (282,688) (362,160) (172,482)
Gains (losses) on sales of investments, net (1,714) (4,230) 35,980
Gains (losses) on early extinguishment of debt (1,018,848) 10,084 (19)
Equity in income (loss) of investments and venture funds (8,616) 18,462 7,665
Total other income (expense) (1,311,006) (330,634) (123,101)
Loss before income tax benefit and discontinued operations (1,835,431) (1,278,919) (2,175,286)
Income tax benefit (537,669) (469,535) (732,949)
Loss from continuing operations (1,297,762) (809,384) (1,442,337)
Income from discontinued operations, net of tax — 297,594 583
Net loss $(1,297,762) $ (511,790) $(1,441,754)
Basic loss per share from continuing operations $ (1.18) $ (1.58) $ (3.40)
Basic earnings per share from discontinued operations — 0.58 0.00
Basic net loss per share $ (1.18) $ (1.00) $ (3.40)
Diluted loss per share from continuing operations $ (1.18) $ (1.58) $ (3.40)
Diluted earnings per share from discontinued operations — 0.58 0.00
Diluted net loss per share $ (1.18) $ (1.00) $ (3.40)
Shares used in computation of per share data:
Basic 1,095,437 509,862 424,439
Diluted 1,095,437 509,862 424,439
See accompanying notes to consolidated financial statements
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