eTrade 2009 Annual Report Download - page 156
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Share Repurchases
On April 18, 2007, the Company announced that its Board of Directors authorized a $250.0 million common
stock repurchase program (the “April 2007 Plan”). The April 2007 Plan is open-ended and allows for the
repurchase of common stock on the open market, in private transactions or a combination of both. The $200.0
million repurchase program approved by the Board in December 2004 (the “December 2004 Plan”) was
completed in 2007.
The Company did not repurchase any shares of common stock in 2009 or 2008. In 2007, the Company
repurchased a total of 7.2 million shares of common stock for an aggregate $148.6 million under the April 2007
Plan and the December 2004 Plan. As of December 31, 2009 and 2008, the Company had approximately $158.5
million available to purchase additional shares under the April 2007 Plan.
Cumulative Effect of the Adoption of Accounting Guidance
On April 1, 2009, the Company adopted the amended guidance for the recognition of OTTI for debt
securities. As a result of the adoption, the Company recognized a $20.2 million after-tax decrease to beginning
accumulated deficit and a corresponding offset in accumulated other comprehensive loss on the consolidated
balance sheet. This adjustment represents the after-tax difference between the impairment reported in prior
periods for securities on the consolidated balance sheet as of April 1, 2009 and the level of impairment that
would have been recorded on these same securities under the new accounting guidance.
On January 1, 2008, the Company elected to carry investments in Fannie Mae and Freddie Mac preferred
stock at fair value through earnings under the fair value option in the financial instruments accounting
guidance. The impact of this adoption was an after-tax decrease to opening retained earnings as of January 1,
2008 of approximately $86.9 million.
On January 1, 2007, the Company adopted the accounting for uncertainty in income taxes accounting
guidance. As a result of the adoption, the Company recognized a $14.9 million increase to its liability for
unrecognized tax benefits, which was accounted for as a reduction to the beginning balance of retained earnings.
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