eTrade 2003 Annual Report Download - page 103

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Table of Contents
Index to Financial Statements
Asset Write-Off
The 2001 original facility restructuring charge included $52.5 million related to the write-off of capitalized software, hardware and other
fixed assets. In calculating the asset write-off charge, the Company used the net book value of assets less the amount of estimated proceeds
upon disposition.
Other
The 2001 original facility restructuring charge also included other pre-tax charges of $21.8 million in 2001 for committed expenses,
termination of consulting agreements, severance and cancellation penalties on various services that were no longer required in the facilities the
Company vacated.
Facility Consolidation Obligations
The components of the facility consolidation restructuring liabilities for the 2003 and 2001 Restructuring Plans at December 31, 2003,
and their timing are as follows (in thousands):
Other Exit Charges
Exit of Institutional Research Business
Sublease Income
Year
Facilities
Obligations
Contracted
Estimate
Discounted
Rents and
Sublease
Net
2004
$
15,242
$
(2,184
)
$
284
$
(1,343
)
$
11,999
2005
12,301
(2,305
)
(581
)
(1,025
)
8,390
2006
11,885
(2,221
)
(3,787
)
(844
)
5,033
2007
10,332
(1,302
)
(3,439
)
(646
)
4,945
2008
7,538
(469
)
(2,176
)
(449
)
4,444
Thereafter
9,271
—
(
2,491
)
(313
)
6,467
Total
$
66,569
$
(8,481
)
$
(12,190
)
$
(4,620
)
$
41,278
Year Ended
December 31,
2003
2002
Exit of institutional research business
$
4,917
$
—
Exit of keyboard lending activities
2,747
—
Israel exit activity
1,435
—
(Gain) loss on exit of E*TRADE Bank AG (German subsidiary)
(3,898
)
12,199
Subsequent recovery related to sale of E*TRADE @ Net Bourse S.A.
—
(
3,513
)
Resolution of obligation upon the liquidation of E*TRADE South Africa
—
(
3,552
)
Total other exit charges , net
$
5,201
$
5,134
In December 2003, the Company exited its proprietary institutional research business located in Europe and recorded an exit charge of
approximately $4.9 million. The charge was primarily related to severance and related tax amounts. In addition, the Company incurred costs
related to cancellation of certain contracts and other legal fees.
Exit of Keyboard Lending Activities
During 2003, the Company exited its keyboard lending activities, which it originally entered into as a result of its acquisition of
E*TRADE Consumer Finance in December 2002. This included the sale of substantially all
90