eTrade 2009 Annual Report Download - page 119

NOTE 3—FACILITY RESTRUCTURING AND OTHER EXIT ACTIVITIES
Restructuring and other exit activities liabilities are included in accounts payable, accrued and other
liabilities in the consolidated balance sheet. The following table summarizes the changes in the facility
restructuring and other exit activities liabilities for the years ended December 31, 2009 and 2008 (dollars in
thousands):
Year Ended
December 31,
2009 2008
Beginning balance $ 21,883 $ 26,651
Facility restructuring and other exit activities 20,652 29,502
Cash payments (16,618) (27,232)
Non-cash charges(1) (7,388) (7,038)
Total facility restructuring and other exit activities liabilities $ 18,529 $ 21,883
(1) Non-cash charges primarily relate to fixed assets that were written off related to the restructuring or exit activity.
The following table summarizes the expense recognized by the Company as facility restructuring and other
exit activities from continuing operations for the periods presented (dollars in thousands):
Year Ended December 31,
2009 2008 2007
Restructuring of international brokerage business $15,655 $ — $ —
Restructuring of institutional brokerage business — 10,292 17,094
Gain on sale of RAA — (2,753) —
Other exit activities 4,997 21,963 10,089
Total facility restructuring and other exit activities $20,652 $29,502 $27,183
Exit of Non-Core Operations
International Brokerage Business
In the fourth quarter of 2009, the Company decided to restructure its international brokerage business, which
provided trading products and services through two primary channels: 1) cross-border trading, where customers
residing outside of the U.S. trade in U.S. securities; and 2) local market trading, where customers residing outside
of the U.S. trade in non-U.S. securities. The Company believes the local market trading is not a key strategic
component of its global brokerage product offering and therefore decided to exit this channel. This exit does not
qualify for discontinued operations accounting as the Company will have significant continuing involvement in
the international brokerage business with cross-border trading.
The Company entered into agreements to sell the local market trading operations in Germany, the Nordic
region and the United Kingdom. The sale of the local market trading operations in Germany was completed in
December 2009 and the Company expects to close on the sale of the local market trading operations in the
Nordic region and United Kingdom during 2010.
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