eTrade 2007 Annual Report Download - page 83

E*TRADE FINANCIAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF INCOME (LOSS)
(In thousands, except per share amounts)
Year Ended December 31,
2007 2006 2005
Revenue:
Operating interest income $ 3,569,711 $ 2,774,679 $1,650,264
Operating interest expense (1,960,656) (1,374,647) (779,164)
Net operating interest income 1,609,055 1,400,032 871,100
Provision for loan losses (640,078) (44,970) (54,016)
Net operating interest income after provision for loan losses 968,977 1,355,062 817,084
Commission 694,110 625,265 458,834
Fees and service charges 258,075 238,760 196,257
Principal transactions 103,229 110,235 99,336
Gain (loss) on loans and securities, net (2,450,036) 55,986 98,858
Other revenue 47,478 35,013 33,476
Total non-interest income (expense) (1,347,144) 1,065,259 886,761
Total net revenue (378,167) 2,420,321 1,703,845
Expense excluding interest:
Compensation and benefits 465,467 469,202 380,803
Clearing and servicing 286,144 253,040 189,736
Advertising and market development 149,573 119,782 105,935
Communications 107,526 110,346 82,485
Professional services 106,691 96,947 77,416
Depreciation and amortization 85,371 73,845 74,981
Occupancy and equipment 93,189 85,568 69,089
Amortization of other intangibles 40,472 46,220 43,765
Impairment of goodwill 101,208 — —
Facility restructuring and other exit activities 33,226 28,537 (30,017)
Other 207,569 136,042 59,860
Total expense excluding interest 1,676,436 1,419,529 1,054,053
Income (loss) before other income (expense), income taxes, minority interest, discontinued
operations and cumulative effect of accounting change (2,054,603) 1,000,792 649,792
Other income (expense):
Corporate interest income 5,755 8,433 11,043
Corporate interest expense (172,482) (152,496) (73,956)
Gain on sales of investments, net 35,980 70,796 83,144
Loss on early extinguishment of debt (19) (1,179) —
Equity in income of investments and venture funds 7,665 2,451 6,103
Total other income (expense) (123,101) (71,995) 26,334
Income (loss) before income taxes, minority interest, discontinued operations and cumulative
effect of accounting change (2,177,704) 928,797 676,126
Income tax expense (benefit) (735,950) 301,983 229,823
Minority interest in subsidiaries — — 65
Net income (loss) from continuing operations (1,441,754) 626,814 446,238
Discontinued operations, net of tax:
Loss from discontinued operations — (721) (21,495)
Gain on disposal of discontinued operations — 2,766 4,023
Gain (loss) from discontinued operations, net of tax — 2,045 (17,472)
Cumulative effect of accounting change, net of tax — — 1,646
Net income (loss) $(1,441,754) $ 628,859 $ 430,412
Basic earnings (loss) per share from continuing operations $ (3.40) $ 1.49 $ 1.20
Basic earnings (loss) per share from discontinued operations — 0.00 (0.04)
Basic earnings per share from cumulative effect of accounting change — — 0.00
Basic net earnings (loss) per share $ (3.40) $ 1.49 $ 1.16
Diluted earnings (loss) per share from continuing operations $ (3.40) $ 1.44 $ 1.16
Diluted earnings (loss) per share from discontinued operations — 0.00 (0.04)
Diluted earnings per share from cumulative effect of accounting change — — 0.00
Diluted net earnings (loss) per share $ (3.40) $ 1.44 $ 1.12
Shares used in computation of per share data:
Basic 424,439 421,127 371,468
Diluted 424,439 436,357 384,630
See accompanying notes to consolidated financial statements
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