eTrade 2003 Annual Report Download - page 53

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Table of Contents
Index to Financial Statements
E*TRADE FINANCIAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share amounts)
Year Ended December 31,
2003
2002
2001
Brokerage revenues:
Commissions
$
337,468
$
294,791
$
377,704
Principal transactions
229,846
223,531
157,949
Other brokerage-related revenues
177,682
174,263
156,690
Brokerage interest income
144,379
182,103
305,581
Brokerage interest expense
(10,305
)
(12,515
)
(86,489
)
Net brokerage revenues
879,070
862,173
911,435
Banking revenues:
Gain on sales of originated loans
192,467
128,506
95,478
Gain on sales of loans held-for-sale and securities, net
97,261
80,256
70,104
Other banking
-
related revenues
80,730
50,665
38,587
Banking interest income
748,527
767,587
859,042
Banking interest expense
(475,824
)
(548,659
)
(691,806
)
Provision for loan losses
(38,523
)
(14,664
)
(7,476
)
Net banking revenues
604,638
463,691
363,929
Total net revenues
1,483,708
1,325,864
1,275,364
Cost of services
618,385
567,224
595,590
Operating expenses:
Selling and marketing
173,066
203,613
253,422
Technology development
60,741
55,712
88,717
General and administrative
255,709
210,645
236,353
Amortization of goodwill and other intangibles
33,023
28,258
43,091
Acquisition-related expenses
1,859
11,473
11,174
Facility restructuring and other exit charges
134,561
16,519
202,765
Executive agreement and loan settlement
—
(
23,485
)
30,210
Total operating expenses
658,959
502,735
865,732
Total cost of services and operating expenses
1,277,344
1,069,959
1,461,322
Operating income (loss)
206,364
255,905
(185,958
)
Non
-operating income (expense):
Corporate interest income
6,538
12,655
22,179
Corporate interest expense
(45,569
)
(47,740
)
(52,862
)
Gain (loss) on investments
147,471
(18,507
)
(49,812
)
Equity in income (loss) of investments
14,834
9,071
(6,174
)
Unrealized losses on venture funds
(5,640
)
(9,683
)
(34,716
)
Fair value adjustments of financial derivatives
(15,338
)
(11,662
)
(3,112
)
Gain on early extinguishment of debt, net
—
5,346
49,318
Other
1,694
(1,444
)
200
Total non-operating income (expense)
103,990
(61,964
)
(74,979
)
Pre
-
tax income (loss)
310,354
193,941
(260,937
)
Income tax expense (benefit)
112,388
85,122
(19,885
)
Minority interest in subsidiaries
(5,061
)
1,555
480
Income (loss) before cumulative effect of accounting changes
203,027
107,264
(241,532
)
Cumulative effect of accounting changes, net of tax
—
(
293,669
)
—
Net income (loss)
$
203,027
$
(186,405
)
$
(241,532
)
Income (loss) per share before cumulative effect of accounting changes:
Basic
$
0.57
$
0.30
$
(0.73
)
Diluted
$
0.55
$
0.30
$
(0.73
)