eTrade 2010 Annual Report Download - page 52
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Corporate/Other
The following table summarizes corporate/other financial information for the periods ended December 31,
2010, 2009 and 2008 (dollars in millions):
Variance
Year Ended December 31, 2010 vs. 2009
2010 2009 2008 Amount %
Total net revenue $ (0.0) $ 0.0 $ 0.1 $ 0.0 *
Compensation and benefits 80.2 93.7 91.6 (13.5) (14)%
Professional services 28.9 42.7 44.4 (13.8) (32)%
Communications 1.7 1.9 2.2 (0.2) (12)%
Occupancy and equipment 2.6 3.4 0.3 (0.8) (24)%
Depreciation and amortization 21.0 19.1 20.5 1.9 10%
Facility restructuring and other exit activities 14.3 20.7 29.5 (6.4) (31)%
Other operating expenses 25.8 21.2 (11.2) 4.6 21%
Total operating expense 174.5 202.7 177.3 (28.2) (14)%
Operating loss (174.5) (202.7) (177.2) 28.2 (14)%
Total other income (expense) (159.0) (1,260.4) (319.7) 1,101.4 (87)%
Corporate/other loss $(333.5) $(1,463.1) $(496.9) $1,129.6 (77)%
* Percentage not meaningful.
Our corporate/other category includes costs that are centrally managed, technology related costs incurred to
support centrally-managed functions, restructuring and other exit activities, corporate debt and corporate
investments.
2010 Compared to 2009
Our corporate/other loss was $333.5 million for the year ended December 31, 2010, compared to $1.5
billion for the same period in 2009. The loss for the year ended December 31, 2010 was due to total operating
expenses of $174.5 million and other expense of $159.0 million. Total other income (expense) primarily
consisted of corporate interest expense of $167.1 million resulting from our interest-bearing corporate debt.
Corporate interest expense decreased 41% to $167.1 million for the year ended December 31, 2010 due to the
reduction in interest-bearing debt in connection with our Debt Exchange in the third quarter of 2009.
2009 Compared to 2008
Our corporate/other loss was $1.5 billion for the year ended December 31, 2009. The loss was due primarily
to the $968.3 million pre-tax non-cash loss on extinguishment of debt related to the Debt Exchange, which is
reported in the total other income (expense) line item. Our corporate/other total operating expenses increased
14% to $202.7 million for the year ended December 31, 2009 compared to 2008. This increase was due primarily
to an increase in other operating expenses of $32.4 million related to the sale of corporate aircraft related assets
in the first quarter of 2008, which resulted in a $23.7 million gain on sale.
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