eTrade 2004 Annual Report Download - page 86

Download and view the complete annual report

Please find page 86 of the 2004 eTrade annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 150

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143
  • 144
  • 145
  • 146
  • 147
  • 148
  • 149
  • 150

Table of Contents
Index to Financial Statements
NOTE 5—BROKERAGE RECEIVABLES, NET AND BROKERAGE PAYABLES
Brokerage receivables, net and brokerage payables consist of the following (in thousands):
Receivable from customers primarily represents credit extended to customers to finance their purchases of securities on margin, as well as
commission receivables from customers upon settlement of their trades. Receivable from non-customers primarily represent credit extended to
principal officers and directors of the Company to finance their purchase of securities on margin. Securities owned by customers and non-
customers are held as collateral for amounts due on margin balances, the value of which is not reflected in the consolidated balance sheets. In
many cases, the Company is permitted to sell or repledge these securities held as collateral and use the securities to enter into securities lending
transactions, to collateralize borrowings or for delivery to counterparties to cover customer short positions. At December 31, 2004, the fair
value of securities that the Company has received as collateral, where the Company is permitted to sell or repledge the securities is
approximately $3,572 million. Of this amount, $1,126 million has been pledged or sold at December 31, 2004 in connection with securities
loans, bank borrowings and deposits with clearing organizations.
Receivable from and payable to brokers, dealers and clearing organizations result from the Company’s brokerage activities. Payable to
customers and non-customers represents free credit balances and other customer and non-customer funds pending completion of securities
transactions. The Company pays interest on certain customer and non-customer credit balances.
78
December 31,
2004
2003
Receivable from customers and non
-
customers (less allowance for doubtful accounts of $1,970 and $1,082)
$
2,214,210
$
1,820,161
Receivable from brokers, dealers and clearing organizations:
Net settlement and deposits with clearing organizations
158,780
128,419
Deposits paid for securities borrowed
613,546
315,789
Securities failed to deliver
11,762
2,592
Other
36,250
30,817
Total brokerage receivables, net
$
3,034,548
$
2,297,778
Payable to customers and non
-
customers
$
2,805,662
$
3,123,478
Payable to brokers, dealers and clearing organizations:
Deposits received for securities loaned
735,622
521,454
Securities failed to receive
10,604
4,978
Other
67,004
46,315
Total brokerage payables
$
3,618,892
$
3,696,225