eTrade 2009 Annual Report Download - page 168

Year Ended December 31, 2008
Trading and
Investing
Balance Sheet
Management Eliminations(1) Total
Revenue:
Operating interest income $1,533,378 $ 2,116,372 $(1,179,810) $ 2,469,940
Operating interest expense (702,946) (1,678,798) 1,179,810 (1,201,934)
Net operating interest income 830,432 437,574 — 1,268,006
Commissions 514,736 815 — 515,551
Fees and service charges 191,534 8,422 — 199,956
Principal transactions 84,798 84 — 84,882
Gains (losses) on loans and securities, net (78) (100,395) — (100,473)
Other-than-temporary impairment — (95,010) — (95,010)
Less: noncredit portion of OTTI recognized in
other comprehensive loss (before tax) — — — —
Net impairment — (95,010) — (95,010)
Other revenues 38,565 14,169 (50) 52,684
Total non-interest income 829,555 (171,915) (50) 657,590
Total net revenue 1,659,987 265,659 (50) 1,925,596
Provision for loan losses — 1,583,666 — 1,583,666
Operating expense:
Compensation and benefits 308,422 74,963 — 383,385
Clearing and servicing 89,220 95,912 (50) 185,082
Advertising and market development 175,262 (12) — 175,250
FDIC insurance premiums 30,075 1,183 — 31,258
Communications 94,357 2,435 — 96,792
Professional services 58,152 35,918 — 94,070
Occupancy and equipment 82,123 3,643 — 85,766
Depreciation and amortization 67,005 15,478 — 82,483
Amortization of other intangibles 35,746 — — 35,746
Facility restructuring and other exit activities 10,174 19,328 — 29,502
Other operating expenses 86,299 4,582 — 90,881
Total operating expense 1,036,835 253,430 (50) 1,290,215
Segment income (loss) $ 623,152 $(1,571,437) $ — $ (948,285)
(1) Reflects elimination of transactions between trading and investing and balance sheet management segments, which includes deposits and
intercompany transfer pricing arrangements.
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