eTrade 2002 Annual Report Download - page 41

Table of Contents
Index to Financial Statements
but rather tested upon adoption and at least annually thereafter for impairment. Impairment to goodwill identified upon adoption in
January 2002 is reported as a cumulative effect of accounting change. In fiscal 2002, the Company adopted SFAS No. 145, Rescission of
FASB Statements No. 4, 44, and 64, Amendment of FASB Statement No. 13, and Technical Corrections, resulting in a reclassification of
previously reported extraordinary gain (loss) on early extinguishment of debt, net of tax, to gain on early extinguishment of debt in
non-operating income (expense); along with an adjustment of previously reported tax expense (benefit). In the three months ended
December 31, 2000, a cumulative effect of a change in accounting principle resulted from the implementation by E*TRADE Group of
SFAS No. 133, Accounting for Derivative Instruments and Hedging Activities , which requires that all derivatives be recorded on the
balance sheet at fair value, with the initial application reported as the cumulative effect of a change in accounting principle. In fiscal 1999,
the cumulative effect of change in accounting principle resulted from the implementation by E*TRADE Financial Corporation (“ETFC”)
of Statement of Position 98-5 , Reporting on the Cost of Start-Up Activities, which requires that the cost of start-up activities be expensed
as incurred rather than capitalized, with the initial application reported as the cumulative effect of a change in accounting principle.
The selected consolidated financial data should be read in conjunction with Item 7. Management’ s Discussion and Analysis of Financial
Condition and Results of Operations, and Item 8. Consolidated Financial Statements and Supplementary Data.
Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations
FORWARD-LOOKING STATEMENTS
Statements made in this document, other than statements of historical information, are forward-looking statements that are made pursuant to
the safe harbor provisions of Section 21E of the Securities Exchange Act of 1934. These forward-looking statements may sometimes be
identified by words such as “expect”, “may”, “looking forward”, “we plan”, “we believe”, “are planned”, “could have”, “could be” and
“currently anticipate”. Although we believe these statements, as well as other oral and written forward-looking statements made by or on
behalf of E*TRADE Group, Inc. from time to time, to be true and reasonable, we can give no assurance that these plans, intentions or
expectations will be achieved. Actual results, performance or achievements could differ materially from those contemplated, expressed or
implied by the forward-looking statements. Important factors that could cause actual results to differ materially from our forward-looking
statements are set forth in our other filings with the Securities and Exchange Commission and in this document under the heading “Risk
Factors”, beginning on page 51 and in this section captioned “Management’s Discussion and Analysis of Financial Condition and Results of
Operations”. We caution that the risks and factors discussed below and in such filings are not exclusive. We do not undertake to update any
forward-looking statement that we make from time to time.
OVERVIEW
E*TRADE Group, Inc. is a diversified financial services company that offers a wide range of financial products and services under the brand
“E*TRADE Financial.” Our core strategy is to create value for customers and competitive advantage by utilizing technology to provide
brokerage, banking and lending products, primarily through electronic delivery channels. We offer products and services to retail, corporate and
institutional customers, and operate in multiple countries around the world. Retail customers can move money electronically between
brokerage, banking and lending accounts and have access to physical touchpoints that include E*TRADE Centers in selected cities and over
15,000 E*TRADE automated teller machines (“ATMs”) located throughout the United States. Corporate clients utilize our employee stock plan
administration and options management tools. Institutional customers enjoy access to a broad range of brokerage products and services,
including cross-border trading and independent research.
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2003. EDGAR Online, Inc.