eTrade 2011 Annual Report Download - page 47

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Other Revenues
Other revenues decreased 3% to $46.3 million for the year ended December 31, 2010 compared to 2009.
The decrease was due to a decline in the income from the cash surrender value of our bank-owned life insurance,
partially offset by the gain on the sale of approximately $1 billion in savings accounts to Discover Financial
Services in the first quarter of 2010.
Provision for Loan Losses
Provision for loan losses decreased 48% to $779.4 million for the year ended December 31, 2010 compared
2009. The decrease in the provision for loan losses was driven by lower levels of delinquent loans in our one- to
four-family and home equity loan portfolios.
Operating Expense
The components of operating expense and the resulting variances are as follows (dollars in millions):
Variance
Year Ended December 31, 2010 vs. 2009
2010 2009 Amount %
Compensation and benefits $ 325.0 $ 366.2 $ (41.2) (11)%
Clearing and servicing 147.5 170.7 (23.2) (14)%
Advertising and market development 132.2 114.4 17.8 16%
FDIC insurance premiums 77.7 94.3 (16.6) (18)%
Professional services 81.2 78.7 2.5 3%
Occupancy and equipment 70.9 78.4 (7.5) (10)%
Communications 73.3 84.4 (11.1) (13)%
Depreciation and amortization 87.9 83.3 4.6 6%
Amortization of other intangibles 28.5 29.7 (1.2) (4)%
Facility restructuring and other exit activities 14.4 20.7 (6.3) *
Other operating expenses 104.0 122.5 (18.5) (15)%
Total operating expense $1,142.6 $1,243.3 $(100.7) (8)%
* Percentage not meaningful.
Compensation and Benefits
Compensation and benefits decreased 11% to $325.0 million for the year ended December 31, 2010
compared to 2009. This decrease resulted from lower incentive compensation expense and lower salary expense
due to a reduction in our employee base compared to 2009.
Clearing and Servicing
Clearing and servicing expense decreased 14% to $147.5 million for the year ended December 31, 2010
compared to 2009. This decrease resulted primarily from lower trading volumes and lower loan balances compared to
2009.
Advertising and Market Development
Advertising and market development expense increased 16% to $132.2 million for the year ended
December 31, 2010 compared to 2009. This fluctuation was due largely to a planned increase in advertising
expense to attract new accounts and customer assets during the year ended December 31, 2010.
FDIC Insurance Premiums
FDIC insurance premiums decreased 18% to $77.7 million for the year ended December 31, 2010 compared
to 2009. The decrease was due primarily to an industry wide special assessment that resulted in an additional
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