eTrade 2012 Annual Report Download - page 24

We may not be able to generate sufficient cash to service all of our indebtedness and may be forced to take other
actions to satisfy our obligations under our indebtedness, which may not be successful.
Our ability to make scheduled payments on or to refinance our debt obligations depends on our financial
condition, operating performance and our ability to receive dividend payments from our subsidiaries, which is
subject to prevailing economic and competitive conditions, regulatory approval and certain financial, business
and other factors beyond our control. We may not be able to maintain a level of cash flows from operating
activities sufficient to permit us to pay the principal and interest on our indebtedness.
If our cash flows and capital resources are insufficient to fund our debt service obligations, we may be
forced to reduce or delay investments and capital expenditures, or to sell assets, seek additional capital or
restructure or refinance our indebtedness. These alternative measures may not be successful and may not permit
us to meet our scheduled debt service obligations. In addition, the terms of existing or future debt instruments
may restrict us from adopting some of these alternatives.
Our ability to restructure or refinance our debt will depend on the condition of the capital markets and our
financial condition at such time. Any refinancing of our debt could be at higher interest rates and may require us
to comply with more onerous covenants, which could further restrict our business operations. In addition, any
failure to make payments of interest and principal on our outstanding indebtedness on a timely basis would likely
result in a reduction of our credit rating, which could harm our ability to incur additional indebtedness. If our
cash flows and available cash are insufficient to meet our debt service obligations, we could face substantial
liquidity problems and might be required to dispose of material assets or operations to meet our debt service and
other obligations. We may not be able to consummate those dispositions or to obtain the proceeds that we could
realize from them, and these proceeds may not be adequate to meet any debt service obligations then due.
ITEM 1B. UNRESOLVED STAFF COMMENTS
None.
ITEM 2. PROPERTIES
A summary of our significant locations at December 31, 2012 is shown in the following table. All facilities
are leased, except for 165,000 square feet of our office in Alpharetta, Georgia. Square footage amounts are net of
space that has been sublet or part of a facility restructuring.
Location Approximate Square Footage
Alpharetta, Georgia 254,000
Jersey City, New Jersey 107,000
Arlington, Virginia 102,000
Menlo Park, California 91,000
Sandy, Utah 66,000
New York, New York 39,000
Chicago, Illinois 25,000
All of our facilities are used by either our trading and investing or balance sheet management segments, in
addition to the corporate/other category. All other leased facilities with space of less than 25,000 square feet are
not listed by location. In addition to the significant facilities above, we also lease all 30 E*TRADE branches,
ranging in space from approximately 2,500 to 8,000 square feet. We believe our facilities space is adequate to
meet our needs in 2013.
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