eTrade 2011 Annual Report Download - page 114

impairment is necessary. The amended guidance became effective January 1, 2012 for the Company. The
adoption of the amended accounting guidance did not have a material impact on the Company’s financial
condition, results of operations, or cash flows.
Disclosures about Offsetting Assets and Liabilities
In December 2011, the FASB amended the disclosure guidance about offsetting assets and liabilities. The
amended disclosure guidance will enable users of the Company’s financial statements to evaluate the effect or
potential effect of netting arrangements on the Company’s financial position. This includes the effect or potential
effect of rights of setoff between recognized assets and recognized liabilities within the scope of amended
disclosure guidance, such as derivative instruments and other financial instruments. The amended disclosure
guidance will be effective for annual and interim periods beginning on January 1, 2013 for the Company and will
be applied retrospectively for all comparative periods presented. The adoption of the amended accounting
guidance will not have a material impact on the Company’s financial condition, results of operations, or cash
flows.
NOTE 2—FACILITY RESTRUCTURING AND OTHER EXIT ACTIVITIES
Restructuring and other exit activities liabilities are included in other liabilities in the consolidated balance
sheet. The following table summarizes the changes in the facility restructuring and other exit activities liabilities
for the years ended December 31, 2011 and 2010 (dollars in thousands):
Year Ended December 31,
2011 2010
Beginning balance $10,371 $ 18,529
Facility restructuring and other exit activities 7,706 14,346
Cash payments (9,920) (18,591)
Non-cash charges (1) (4,096) (3,913)
Total facility restructuring and other exit activities liabilities $ 4,061 $ 10,371
(1) Non-cash charges primarily relate to fixed assets that were written off related to the restructuring or exit activity.
The following table summarizes the expense recognized by the Company as facility restructuring and other
exit activities for the periods presented (dollars in thousands):
Year Ended December 31,
2011 2010 2009
Restructuring of international brokerage business $1,060 $ 6,846 $15,655
Other facility restructuring and exit activities 6,646 7,500 4,997
Total facility restructuring and other exit activities $7,706 $14,346 $20,652
Facility restructuring and other exit activities expenses are not allocated to the Company’s operating
segments but are reported as a component of the corporate/other category within the Company’s segment
information.
Exit of Non-Core Operations
International Brokerage Business
In the fourth quarter of 2009, the Company decided to restructure its international brokerage business, which
provided trading products and services through two primary channels: 1) cross-border trading, where customers
residing outside of the U.S. trade in U.S. securities; and 2) local market trading, where customers residing outside
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