eTrade 2009 Annual Report Download - page 157

NOTE 18—LOSS PER SHARE
The following table is a reconciliation of basic and diluted loss per share (dollars and shares in thousands,
except per share amounts):
Year Ended December 31,
2009 2008 2007
Basic:
Numerator:
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)
Denominator:
Basic weighted-average shares outstanding 1,095,437 509,862 424,439
Diluted:
Numerator:
Net loss $(1,297,762) $(511,790) $(1,441,754)
Denominator:
Diluted weighted-average shares outstanding 1,095,437 509,862 424,439
Per share:
Basic loss per share:
Loss per share from continuing operations $ (1.18) $ (1.58) $ (3.40)
Earnings per share from discontinued operations — 0.58 0.00
Net loss per share $ (1.18) $ (1.00) $ (3.40)
Diluted loss per share:
Loss per share from continuing operations $ (1.18) $ (1.58) $ (3.40)
Earnings per share from discontinued operations — 0.58 0.00
Net loss per share $ (1.18) $ (1.00) $ (3.40)
The Company excluded from the calculations of diluted loss per share 33.3 million, 37.4 million, and
21.0 million shares of stock options and unvested restricted stock awards and units that would have been anti-
dilutive for the years ended December 31, 2009, 2008 and 2007, respectively. Of the excluded shares,
5.8 million, 1.4 million, and 9.6 million shares were anti-dilutive because of the Company’s net loss for the years
ended December 31, 2009, 2008 and 2007, respectively.
In addition, the Company excluded 388.8 million shares related to the convertible debentures that would
have been anti-dilutive from the calculations of diluted loss per share for the year ended December 31, 2009
because of the Company’s net loss for the period. There were no convertible debentures for the years ended
December 31, 2008 and 2007. 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.
NOTE 19—EMPLOYEE SHARE-BASED PAYMENTS AND OTHER BENEFITS
In 2005, the Company adopted and the shareholders approved the 2005 Stock Incentive Plan (“2005 Plan”)
to replace the 1996 Stock Incentive Plan (“1996 Plan”) which provides for the grant of nonqualified or incentive
stock options and awards to officers, directors, key employees and consultants for the purchase of newly issued
shares of the Company’s common stock at a price determined by the Board at the date the option is granted. The
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