eTrade 2005 Annual Report Download - page 175

Table of Contents
Securities Purchased, Collateral Not Received
The Bank has payables to third-party brokers for mortgage-backed securities that the Bank committed to buy, but did not receive from
the brokers by December31, 2005 and 2004.
Notes Payable
The Company maintains committed and uncommitted financing facilities with banks totaling $825 million to meet corporate liquidity
needs and finance margin lending. There was none outstanding under these lines at December31, 2005 and 2004. The Company also
has multiple term loans from financial institutions. These loans are collateralized by equipment. Borrowings under these term loans bear
interest at 5.43% and 2.95% above LIBOR. The Company had approximately $40.5 million of principal outstanding under these loans at
December31, 2005.
NOTE 18—INCOME TAXES
The components of income tax expense from continuing operations are as follows (in thousands)
Year Ended December31,
2005
2004
2003
Current:
Federal
$
158,050
$
95,862
$
80,302
Foreign
3,518
4,442
5,894
State
19,237
14,540
18,390
Total current
180,805
114,844
104,586
Deferred:
Federal
45,200
44,086
(5,368
)
Foreign
(1,264
)
2,328
5,418
State
5,082
20,506
6,965
Total deferred
49,018
66,920
7,015
Income tax expense from continuing operations
$
229,823
$
181,764
$
111,601
The Company is subject to examination by the Internal Revenue Service (the “IRS”), taxing authorities in foreign countries and states
in which the Company has significant business operations. The Company regularly assesses the likelihood of additional tax
deficiencies in each of the taxing jurisdictions resulting from ongoing and subsequent years’ examinations. Included in current tax
expense are charges to accruals for expected tax contingencies in accordance with SFAS No.5.
The components of income before income taxes and discontinued operations are as follows (in thousands):
Year Ended December31,
2005
2004
2003
Domestic
$
653,131
$
545,197
$
308,901
Foreign
22,995
19,290
(1,840
)
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