eTrade 2007 Annual Report Download - page 52

commitments to extend credit and letters of credit. Additionally, we enter into guarantees and other similar
arrangements as part of transactions in the ordinary course of business. For additional information on each of
these arrangements, see Item 8. Financial Statements and Supplementary Data.
Other Sources of Liquidity
In addition to the liquidity available from subsidiaries, the parent company held $251.7 million in cash
available as a resource. We also maintain $451.0 million in uncommitted financing to meet margin lending
needs. There were no outstanding balances, and the full $451.0 million was available at both December 31, 2007
and 2006.
We rely on borrowed funds, such as FHLB advances and securities sold under agreements to repurchase, to
provide liquidity for the Bank. At December 31, 2007, the Bank had approximately $10.5 billion in additional
borrowing capacity with the FHLB.
We have the option to make the interest payments of approximately $605 million on our springing lien notes
in the form of either cash or additional springing lien notes through May 2010.
Contractual Obligations and Commitments
The following summarizes our contractual obligations at December 31, 2007 and the effect such obligations
are expected to have on our liquidity and cash flow in future periods (dollars in thousands):
Payments Due by Period
Total
Less Than
1 Year 1-3 Years 3-5 Years Thereafter
Certificates of deposit(1)(2) $ 4,159,985 $ 550,119 $ 222,867 $ 600,733 $ 5,533,704
Securities sold under agreements to
repurchase(2) 7,528,168 332,424 186,862 1,330,275 9,377,729
Other borrowings(2)(3) 3,963,569 1,723,004 587,357 2,913,664 9,187,594
Corporate debt(4) 344,434 688,867 1,086,711 4,340,819 6,460,831
Operating lease payments(5) 38,767 70,248 46,103 67,686 222,804
Purchase Obligations(6) 72,125 19,687 2,913 — 94,725
FIN 48 liabilities 31,873 3,815 16,516 31,242 83,446
Total contractual obligations $16,138,921 $3,388,164 $2,149,329 $9,284,419 $30,960,833
(1) Does not include sweep deposit accounts, money market and savings accounts or checking accounts as there are no maturities and /or
scheduled contractual payments.
(2) Includes annual interest based on the contractual features of each transaction, using market rates at December 31, 2007. Interest rates are
assumed to remain at current levels over the life of all adjustable rate instruments.
(3) For mandatorily redeemable preferred securities included in other borrowings, does not assume early redemption under current
conversion provisions.
(4) Includes annual interest payments; does not assume early redemption under current conversion and call provisions. See Note 15—
Corporate Debt for further details.
(5) Includes facilities restructuring leases and excludes estimated future sublease income.
(6) Includes purchase obligations for goods and services covered by non-cancelable contracts and contracts including cancellation fees.
Excluded from the table are purchase obligations expected to be settled in cash within one year of the end of the reporting period.
As of December 31, 2007, the Company had $6.3 billion of unused lines of credit available to customers
under home equity lines of credit and $0.5 billion of unused credit card and commercial lines. As of
December 31, 2007, outstanding commitments to originate and sell loans totaled $0.4 billion and $0.1 billion,
respectively, while the Company had no commitments to purchase loans. The Company had a commitment to
purchase and sell securities of $0.5 billion and $2.0 billion, respectively. The Company also had equity funding
commitments of $25.6 million as of December 31, 2007, based on investment plans of venture capital funds, low
income housing tax credit partnerships and joint ventures. Additional information related to commitments and
contingent liabilities is detailed in Note 23—Commitments, Contingencies and Other Regulatory Matters.
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