eTrade 2004 Annual Report Download - page 118

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Table of Contents
Index to Financial Statements
operating results of E*TRADE Consumer Finance. In 2004, the Company accrued an additional $0.5 million as the result of a litigation claim.
This claim was settled in January 2005 for $0.5 million.
Sale of German Subsidiary
The Company sold its German subsidiary to an unrelated party in March 2003 for $4.9 million in cash. The Company recorded an
impairment loss on its German subsidiary at December 31, 2002, as a result of these negotiations. In addition, the Company will receive future
services and technology assets for its European operations from the buyer valued at $5.1 million. The Company recorded these future services
in other assets and will amortize the value of these services over the anticipated period during which it expects to receive the actual services.
The Company recognized a gain of $3.9 million from the sale in 2003. The gain was primarily attributable to the terms of the agreement, which
provided for a partial reimbursement to the Company for losses incurred through the regulatory approval period and to the appreciation in the
EURO during the approval period.
109