eTrade 2000 Annual Report Download - page 71

Net increase in banking deposits, net of deposits received in business
acquisition
2,418,274 1,003,756 335,136
Advances from the Federal Home Loan Bank of Atlanta 4,704,500 2,706,510 1,201,577
Payments on advances from the Federal Home Loan Bank of Atlanta (3,544,500 ) (2,437,510 ) (929,077 )
Net increase in securities sold under agreements to repurchase 1,103,525 310,732 124,526
Net proceeds from convertible subordinated notes 631,312 — —
Proceeds from bank loans and lines of credit, net of transaction costs 177,037 — —
Payments on bank loans and lines of credit (154,802 ) — —
Net increase/(decrease) in other borrowed funds, net of borrowings
received in business acquisition
(5,150 ) (29,792 ) 241
Proceeds from issuance of trust preferred securities — (4,696 ) 25,813
Proceeds from issuance of common and preferred stock, and from
associate
stock transactions
20,117 455,282 481,348
Other (8,285 ) (4,287 ) 1,345
Net cash provided by financing activities 5,342,028 1,999,995 1,240,909
INCREASE (DECREASE) IN CASH AND EQUIVALENTS: 17,738 81,296 (68,343 )
CASH AND EQUIVALENTS-Beginning of period 157,705 76,409 144,752
CASH AND EQUIVALENTS-End of period $ 175,443 $ 157,705 $ 76,409
SUPPLEMENTAL DISCLOSURES:
Cash paid for interest $ 608,232 $ 208,439 $ 112,694
Cash paid for income taxes $ 4,037 $ 763 $ 1,664
Non-cash investing and financing activities:
Tax benefit on exercise of stock options and warrants $ 32,276 $ 47,007 $ 9,430
Acquisitions, net of cash acquired:
Common stock issued and options assumed $ 416,715 $ — $ —
Cash paid, less acquired 32,497 7,421 22,300
Liabilities assumed 23,867 — 315,400
Carrying value of joint-venture investments 6,058 — —
Fair value of assets acquired including goodwill $ 479,137 $ 7,421 $ 337,700
See notes to consolidated financial statements
77
E*TRADE GROUP, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
1. ORGANIZATION AND BASIS OF PRESENTATION
The consolidated financial statements include E*TRADE Group, Inc. (“Parent”), a financial services holding company, and its
subsidiaries (collectively, the “Company”), including but not limited to E*TRADE Securities, Inc. (“E*TRADE Securities”), a
securities broker-dealer, TIR (Holdings) Limited (“TIR”), a provider of global securities brokerage and other related services to
institutional clients, E*TRADE Financial Corporation (“ETFC”), a provider of financial services, VERSUS Technologies, Inc.
(“VERSUS”), a Canadian-based provider of electronic securities trading services for institutional and retail investors and owner of the
E*TRADE Canada license, and E*TRADE Access, Inc. (“E*TRADE Access”), an independent network of centrally-managed
automated teller machines (“ATMs”) in the United States. The consolidated financial statements of the Company have been prepared
to give retroactiv e effect to the acquisitions of ETFC in January 2000 and VERSUS in August 2000, which have been accounted for
as poolings of interests (see Note 3). The primary business of ETFC is conducted by E*TRADE Bank (the “Bank”) and E*TRADE
Capital Markets, Inc. (“ETCM”). The Bank is a federally chartered savings bank that provides deposit accounts insured by the Federal
Deposit Insurance Corporation (“FDIC”) to customers nationwide. ETCM is a funds manager and registered broker-dealer.
The consolidated financial statements of the Company include the accounts of the Parent, and its majority owned subsidiaries, which
are consolidated. Intercompany accounts and transactions are eliminated in consolidation. Other subsidiaries and affiliates in which
there is at least a 20% ownership are generally accounted for by the equity method; those in which there is a less than 20% ownership
are generally carried at cost.
The preparation of the Company’ s consolidated financial statements in conformity with accounting principles generally accepted in
the United States of America requires management to make estimates and assumptions that affect the amounts reported in the
2002. EDGAR Online, Inc.