eTrade 2008 Annual Report Download - page 137

Corporate Debt Covenants
Certain of the Company’s corporate debt described above have terms which include customary financial
covenants. As of December 31, 2008, the Company was in compliance with all such covenants.
Other Corporate Debt
The Company also has multiple term loans from financial institutions. These loans are collateralized by
equipment and are included within other borrowings on the consolidated balance sheet. See Note 14—Securities
Sold Under Agreement to Repurchase and Other Borrowings.
Future Maturities of Corporate Debt
Scheduled principal payments of corporate debt as of December 31, 2008 are as follows (dollars in
thousands):
Years ending December 31,
2009 $ —
2010 —
2011 435,515
2012 —
2013 414,665
Thereafter 2,300,177
Total future principal payments of corporate debt 3,150,357
Unamortized discount and fair value adjustment, net (399,825)
Total corporate debt $2,750,532
NOTE 16—ACCOUNTS PAYABLE, ACCRUED AND OTHER LIABILITIES
Accounts payable, accrued and other liabilities consist of the following (dollars in thousands):
December 31,
2008 2007
Derivative liabilities $ 485,181 $ 200,293
Deposits received for securities loaned 288,384 2,014,151
Accounts payable and accrued expenses 192,613 366,891
Other payables to brokers, dealers and clearing organizations 143,011 295,600
Derivatives payable to Lehman Brothers 101,354 —
Subserviced loan advances 92,081 73,212
Reserves for legal and regulatory matters 54,954 40,640
Senior and convertible debt accrued interest 32,054 35,581
Facility restructuring and other exit activities liability 21,883 26,651
Fails to receive 5,592 51,177
Other 154,446 111,351
Total accounts payable, accrued and other liabilities $1,571,553 $3,215,547
NOTE 17—INCOME TAXES
Effective January 1, 2007, the Company adopted FIN 48. As a result of the implementation, the Company
recognized a $14.9 million increase to its liability for unrecognized tax benefits, which was accounted for as a
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