eTrade 1999 Annual Report Download - page 59

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matches certain associate contributions; additional contributions to this plan are at the discretion of the Company. Additionally, TIR
has a 401(k) profit-sharing plan and other various defined contribution plans covering substantially all TIR associates. TIR's
contributions to these plans range from 3% to 7% of eligible associate base salaries. Total contribution expense under these plans for
the years ended September 30, 1999, 1998 and 1997, was $1,556,000, $570,000, and $380,000, respectively.
11. INCOME (LOSS) PER SHARE
The following table sets forth the computation of shares used in the computations of basic and diluted income (loss) per share (in
thousands):
Years Ended September
30,
-----------------------
1999 1998 1997
------- -------
-------
Shares Used in Computation:
Weighted average common shares outstanding used in
computation of basic income (loss) per share..... 235,926 173,906
133,572
Dilutive effect of stock options.................. -- 11,573
14,261
------- -------
-------
Shares used in computation of diluted income (loss)
per share.......................................... 235,926 185,479
147,833
======= =======
=======
Because the Company reported a net loss in fiscal 1999, the calculation of diluted earnings per share does not include common stock
equivalents as they are anti-dilutive and would result in a reduction of loss per share. If the Company had reported net income in fiscal
year 1999, there would have been 19,272,000 additional shares in the calculation of diluted earnings per share. Options to purchase
7,146,000 and 1,278,000 shares of common stock at prices ranging from $1.24 to $11.52 and $2.58 to $11.50 were outstanding as of
September 30, 1998 and 1997, respectively, but not included in the computation of diluted income (loss) per share for the years ended
September 30, 1998 and 1997, respectively. These options were excluded because the options' exercise price was greater than the
average market price of the Company's common stock for the years ended September 30, 1998 and 1997, respectively, and therefore
would be anti-dilutive for purposes of this calculation.
12. REGULATORY REQUIREMENTS
E*TRADE Securities is subject to the Uniform Net Capital Rule (the "Rule") under the Securities Exchange Act of 1934 administered
by the Securities and Exchange Commission and the National Association of Securities Dealers, Inc., which requires the maintenance
of minimum net capital. E*TRADE Securities has elected to use the alternative method permitted by the Rule, which requires that the
Company maintain minimum net capital equal to the greater of $250,000 or 2 percent of aggregate debit balances arising from
customer
60
transactions, as defined. E*TRADE Securities had amounts in relation to the Rule as follows (in thousands, except percentage data):
2002. EDGAR Online, Inc.