eTrade 2003 Annual Report Download - page 115

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Table of Contents
Index to Financial Statements
The fair value of financial instruments whose estimated fair values were different than their carrying values is summarized below (in
thousands):
NOTE 28—SEGMENT AND GEOGRAPHIC INFORMATION
December 31, 2003
December 31, 2002
Carrying
Value
Fair Value
Carrying
Value
Fair Value
Assets:
Loans receivable and loans held
-
for
-
sale, net
$
9,131,393
$
9,049,197
$
7,365,720
$
7,353,175
Equity method and other investments
$
49,306
$
49,306
$
113,196
$
111,895
Liabilities:
Deposits
$
12,514,486
$
12,311,009
$
8,400,333
$
8,539,347
Securities sold under agreements to repurchase
$
5,283,609
$
5,257,531
$
5,628,338
$
5,827,107
Other borrowings by Bank subsidiary
$
1,203,554
$
1,225,480
$
1,600,584
$
1,728,651
Subordinated notes
$
695,330
$
775,743
$
695,330
$
553,893
In continuing to evaluate current operations, beginning in 2003, the Company revised its management reporting to reflect the manner in
which its chief operating decision maker assesses Company performance and makes resource allocation decisions. As a result, the Company
separates its financial services into two segments: Brokerage and Banking.
Brokerage includes:
•
Retail operations—both domestic and international
•
Institutional operations—both domestic and international, as well as market-making activities
Banking includes:
•
Corporate operations—E*TRADE Financial Corporate Services and other operations
•
Retail operations—mortgage and consumer lending services, FDIC-insured deposit and banking products and an independent network
of ATMs
•
Institutional operations—global asset management activities
The Company previously reported its Global and Institutional operations as a separate reporting segment. The consolidation, restructuring
and exit of certain international brokerage operations beginning in 2001 and continuing through 2003 allowed the Company to provide these
services on consolidated platforms. As a result, these operations are now managed and directed under a single brokerage officer.
102
•
Corporate operations—certain money management programs