eTrade 2004 Annual Report Download - page 83

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Table of Contents
Index to Financial Statements
its continued ownership and direct operation of the ATM network was not essential to providing this customer benefit and that the capital it had
invested in this endeavor could be better applied to other operations.
The sale resulted in a $57.5 million pre-tax gain ($31.4 million after taxes). As part of the sales agreement, Cardtronics assumed
substantially all of the liabilities of E*TRADE Access, including contingent liabilities that could result from litigation that was pending final
resolution as of June 30, 2004. Under the sales agreement, the Company continues to retain the obligation for certain unasserted contingent
liabilities that may have existed prior to the sale, primarily employment-related claims. The Company has reflected E*TRADE Access’ results
of operations, financial position and cash flows as discontinued operations in the consolidated financial statements for all periods reported
herein.
The following table summarizes the results of discontinued operations for the periods presented (in thousands):
The following table summarizes the total assets and liabilities of discontinued operations of E*TRADE Access for periods presented (in
thousands):
75
Year Ended December 31,
2004
2003
2002
Revenues
$
20,029
$
44,909
$
38,659
Loss from discontinued operations before income taxes
$
(3,085
)
$
(2,700
)
$
(3,597
)
Income tax benefit
1,230
1,035
1,387
Loss from discontinued operations
$
(1,855
)
$
(1,665
)
$
(2,210
)
December 31,
2004
2003
Assets:
Cash and equivalents
$
—
$
75
Other investments
—
34
Property and equipment, net
—
14,161
Goodwill
—
9,651
Other intangibles, net
—
17,958
Other assets
1,610
5,906
Total assets of discontinued operations
(1)
$
1,610
$
47,785
Liabilities:
Accounts payable, accrued and other liabilities
$
4,396
$
13,037
Total liabilities of discontinued operations
(1)
$
4,396
$
13,037
(1)
All discontinued assets are reflected as other assets and all discontinued liabilities are reflected as accounts payable, accrued and other liabilities in the consolidated balance sheets.