eTrade 2003 Annual Report Download - page 86

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Table of Contents
Index to Financial Statements
The following table reconciles previously reported net income and earnings per share, excluding the cumulative effect of accounting
change in 2002, to the amounts adjusted for the exclusion of goodwill amortization (in thousands except per share amounts):
NOTE 10—OTHER ASSETS
Year Ended December 31,
2003
2002
2001
Reported income (loss)
$
203,027
$
107,264
$
(241,532
)
Add: Goodwill amortization
—
—
29,208
Adjusted net income (loss)
$
203,027
$
107,264
$
(212,324
)
Basic earnings per share:
Reported income (loss) per share
$
0.57
$
0.30
$
(0.73
)
Goodwill amortization per share
—
—
0.09
Adjusted net income (loss) per share
$
0.57
$
0.30
$
(0.64
)
Diluted earnings per share:
Reported income (loss) per share
$
0.55
$
0.30
$
(0.73
)
Goodwill amortization per share
—
—
0.09
Adjusted net income (loss) per share
$
0.55
$
0.30
$
(0.64
)
Shares used to calculate per share data:
Basic
358,320
355,090
332,370
Diluted
367,361
361,051
332,370
Other assets consists of the following (in thousands):
Receivables for Bank Securities Sold, Collateral Not Delivered
December 31,
2003
2002
Receivables for Bank securities sold, collateral not delivered
$
46,514
$
241,682
Prepaid expenses
50,151
7,324
Net tax assets (see Note 17)
84,544
112,224
Real estate owned and repossessed assets
6,690
6,723
Secured related party and employee notes receivable
500
14,226
Other
76,932
164,902
Total other assets
$
265,331
$
547,081
The Bank has receivables for mortgage-backed securities from third-party brokers that the Bank committed to sell, but did not deliver to
the brokers by the settlement date. The Bank was unable to deliver the securities primarily because other parties failed to deliver similar
securities to the Bank, which the Bank had committed to buy. The Bank’
s interest rate risk exposure related to this receivable is mitigated by its
commitments to purchase mortgage-backed securities from other third-party brokers at a fixed price.
73