eTrade 2009 Annual Report Download - page 120

As of December 31, 2009, the local market trading operations in Nordic and UK were considered
held-for-sale. Below is a table summarizing the carrying amounts of the major classes of assets and liabilities of
these operations as of December 31, 2009 (dollars in thousands):
December 31,
2009
Assets
Cash and equivalents $226,060
Cash and investments required to be segregated under federal or other
regulations 141,082
Margin receivables 83,131
Property and equipment, net 3,461
Other assets 19,286
Total assets $473,020
Liabilities
Customer payables $440,606
Accounts payable, accrued and other liabilities 8,741
Total liabilities $449,347
As a result of the international brokerage business restructuring, the Company recognized $7.4 million in
severance costs and $8.3 million of other costs for the year ended December 31, 2009. The total charges for this
restructuring are expected to be up to $30 million, all of which will be recorded to the trading and investing
segment.
Institutional Brokerage Operations
In 2007, the Company announced a plan to simplify and streamline the business by exiting and/or
restructuring certain non-core operations and took steps to restructure the institutional brokerage business to
focus on areas that complement order flow generated by retail customers. In 2008, the Company announced the
decision to exit certain institutional trading operations in the U.S. that did not align with the core retail business.
As a result of these exits, the Company incurred $5.6 million and $9.1 million for facilities consolidation and
asset write-off costs, $3.1 million and $7.0 million in severance costs and $1.5 million and $1.0 million of other
costs related to these exits for the years ended December 31, 2008 and 2007, respectively. All of these charges
were recorded in the trading and investing segment.
The Company expects to incur charges in future periods as it periodically evaluates the estimates made in
connection with this activity; however, the Company does not expect these charges to be significant.
Sale of RAA
In 2008, the Company sold substantially all of the assets of RAA to PHH Investments, Ltd for
approximately $25 million. The sale of RAA resulted in a pre-tax gain of $2.8 million, which was recorded in the
trading and investing segment.
Other Exit Activities
In 2007, the Company decided to consolidate and relocate certain of its facilities, which continued into
2008. The Company incurred $21.4 million and $7.5 million of charges for the years ended December 31, 2008
and 2007, respectively, primarily related to the exit of certain operating leases. These charges have been recorded
in both the trading and investing and balance sheet management segments. Additionally, in 2007 the Company
incurred $3.1 million in connection with reorganizing the management structure of the balance sheet
management business, including changing the nature and focus of its operations.
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