eTrade 2008 Annual Report Download - page 154

Year Ended December 31, 2007
Retail Institutional Eliminations(1) Total
Revenue:
Operating interest income $1,956,521 $ 2,921,663 $(1,355,129) $ 3,523,055
Operating interest expense (993,964) (2,300,621) 1,355,129 (1,939,456)
Net operating interest income 962,557 621,042 — 1,583,599
Commission 520,216 143,426 — 663,642
Fees and service charges 218,682 21,619 (9,734) 230,567
Principal transactions — 102,180 — 102,180
Gain (loss) on loans and securities, net 180 (2,465,654) — (2,465,474)
Other revenue 40,653 7,093 (534) 47,212
Total non-interest income (expense) 779,731 (2,191,336) (10,268) (1,421,873)
Total net revenue 1,742,288 (1,570,294) (10,268) 161,726
Provision for loan losses — 640,078 — 640,078
Operating expense:
Compensation and benefits 288,315 146,470 — 434,785
Clearing and servicing 77,244 203,223 (10,268) 270,199
Advertising and market development 135,382 3,293 — 138,675
Communications 87,207 11,140 — 98,347
Professional services 63,162 36,031 — 99,193
Occupancy and equipment 75,740 9,449 — 85,189
Depreciation and amortization 62,166 21,032 — 83,198
Amortization of other intangibles 37,897 2,575 — 40,472
Impairment of goodwill — 101,208 — 101,208
Facility restructuring and other exit activities 5,855 21,328 — 27,183
Other 114,896 80,488 — 195,384
Total operating expense 947,864 636,237 (10,268) 1,573,833
Segment income (loss) $ 794,424 $(2,846,609) $ — $(2,052,185)
(1) Reflects elimination of transactions between retail and institutional segments, which includes deposit and customer payable transfer
pricing and order flow rebates.
151