eTrade 2004 Annual Report Download - page 146

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135
Exhibit 12.1
STATEMENT OF COMPUTATION OF RATIO EARNINGS TO FIXED CHARGES
(in thousands, except ratio of earnings to fixed charges)
The ratio of earnings to fixed charges is computed by dividing fixed charges into income (loss) before income taxes, discontinued
operations and the cumulative effect of accounting changes less equity in the income (loss) of investments plus fixed charges less the
preference securities dividend requirement of consolidated subsidiaries. Fixed charges include, as applicable, interest expense, amortization of
debt issuance costs, the estimated interest component of rent expense and the preference securities dividend requirement of consolidated
subsidiaries.
Exhibit 21.1
E*TRADE Financial Corporation
For the Year Ended December 31,
2004
2003
2002
2001
2000
Fixed charges:
Interest expense
$
557,978
$
531,698
$
608,914
$
832,137
$
630,397
Amortization of debt issue expense
2,083
3,084
3,217
3,432
1,788
Estimated interest portion within rental expense
7,236
11,288
10,501
15,912
14,202
Preference securities dividend requirements of consol. subs
—
—
—
—
—
Total fixed charges
$
567,297
$
546,070
$
622,632
$
851,481
$
646,387
Earnings:
Income (loss) before income taxes, discontinued operations and
cumulative effect of accounting change less equity in income (loss) of
investments
$
503,736
$
295,520
$
184,869
$
(254,763
)
$
115,962
Fixed charges
567,297
546,070
622,632
851,481
646,387
Less:
Preference securities dividend requirement of consol subs
—
—
—
—
—
Earnings
$
1,071,033
$
841,590
$
807,501
$
596,718
$
762,349
Ratio of earnings to fixed charges
$
1.89
$
1.54
$
1.30
$
0.70
$
1.18
Excess (deficiency) of earnings to fixed charges
$
503,736
$
295,520
$
184,869
$
(254,763
)
$
115,962
Subsidiaries
Converging Arrows, Inc.
E*TRADE Financial Corporation Capital Trust VII
ClearStation, Inc.
E*TRADE Financial Corporation Capital Trust IX
E*TRADE Financial Corporate Services, Inc.
E*TRADE Financial Corporation Capital Trust X
BRE Holdings, LLC
ETB Capital Trust XI
E*TRADE International Equipment
ETB Capital Trust XII
Management Corporation
ETB Capital Trust XIII
E*TRADE Asset Management, Inc.
ETB Holdings, Inc. Capital Trust XIV
E*TRADE Advisory Services, Inc.
ETB Capital Trust XV
E*TRADE Insurance Services, Inc.
ETB Capital Trust XVI
Professional Path, Inc.
ETB Holdings, Inc. Capital Trust XVII
E*TRADE Online Ventures, Inc.
ETB Holdings, Inc. Capital Trust XVIII
E*TRADE Disaster Relief Fund
ETB Holdings, Inc. Capital Trust XIX
Confluent, Inc.
ETB Holdings, Inc. Capital Trust XX
E*TRADE Capital, Inc.
E*TRADE Bank
Canopy Acquisition Corp.
TBFC Holdings
E*TRADE Technologies Group, LLC
Highland REIT Inc.
E*TRADE Archipelago Holdings, LLC
Highland Holdings Corporation
W&L Aviation, Inc.
E*TRADE Consumer Finance Corporation
BWL Aviation, LLC
ETCF Asset Funding Corporation
Web Street, Inc.
E*TRADE Access, Inc.
Webstreet.com, Inc.
CCS Canada, Inc.
Web Street Securities, Inc.
E*TRADE Mortgage Corporation
E*TRADE Brokerage Holdings, Inc.
U.S. Raptor One, Inc.
E*TRADE Clearing LLC
U.S. Raptor Two, Inc.
E*TRADE Securities LLC
U.S. Raptor Three, Inc.
E*TRADE Brokerage Services, Inc.
E*TRADE Settlement Services, Inc.