eTrade 2006 Annual Report Download - page 142

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Geographic Information
The Company operates in both the United States and international markets. The Company’s international
operations are conducted through offices in Europe, Asia and Canada. The following information provides a
representation of each region’s contribution to the consolidated amounts (dollars in thousands):
United States Europe Asia Canada Total
Total net revenue:
Year ended December 31, 2006 $2,152,253 $147,768 $53,505 $66,795 $2,420,321
Year ended December 31, 2005 $1,496,204 $ 80,505 $71,683 $55,453 $1,703,845
Year ended December 31, 2004 $1,310,234 $ 89,979 $32,360 $50,349 $1,482,922
Long-lived assets:
At December 31, 2006 $ 302,409 $ 6,255 $ 2,722 $ 7,003 $ 318,389
At December 31, 2005 $ 285,870 $ 5,047 $ 1,254 $ 7,085 $ 299,256
No single customer accounted for greater than 10% of gross revenues for the years ended
December 31, 2006, 2005 and 2004.
NOTE 27—FAIR VALUE DISCLOSURE OF FINANCIAL INSTRUMENTS
The fair value of financial instruments whose estimated fair values were their carrying values are
summarized as follows:
•Cash and equivalents, cash and investments required to be segregated, brokerage receivables, net and
brokerage payables—Fair value is estimated to be carrying value.
•Available-for-sale investment securities including mortgage-backed, trading securities and other
investments—Fair value is estimated by using quoted market prices for most securities. For illiquid
securities, market prices are estimated by obtaining market price quotes on similar liquid securities and
adjusting the price to reflect differences between the two securities, such as credit risk, liquidity, term
coupon, payment characteristics and other information.
•FHLB stock—Cost is considered to be a reasonable estimate of fair value because the FHLB has
historically redeemed these securities at cost.
•Financial derivatives and off-balance instruments—The fair value of financial derivatives and
off-balance sheet instruments is the amount the Company would pay or receive to terminate the
agreement as determined from quoted market prices, which is equal to the carrying value.
•Commitments to purchase and originate loans—The fair value is estimated by calculating the net present
value of the anticipated cash flows associated with IRLCs.
The fair value of financial instruments whose estimated fair values were different from their carrying values
are summarized below (dollars in thousands):
December 31, 2006 December 31, 2005
Carrying
Value Fair Value
Carrying
Value Fair Value
Assets:
Loans receivable, net and loans held-for-sale, net $26,656,193 $26,416,079 $19,512,266 $19,242,275
Liabilities:
Deposits $24,071,012 $23,320,015 $15,948,015 $15,937,684
Securities sold under agreements to repurchase $ 9,792,422 $ 9,809,313 $11,101,542 $11,014,478
Other borrowings $ 5,323,962 $ 5,345,326 $ 4,206,996 $ 4,132,159
Senior notes $ 1,401,592 $ 1,471,500 $ 1,401,947 $ 1,437,132
Mandatory convertible notes $ 440,577 $ 525,060 $ 435,589 $ 493,958
Convertible subordinated notes $ — $ — $ 185,165 $ 187,942
139