eTrade 2010 Annual Report Download - page 61

Off-Balance Sheet Arrangements
We enter into various off-balance-sheet arrangements in the ordinary course of business, primarily to meet
the needs of our customers and to reduce our own exposure to interest rate risk. These arrangements include firm
commitments to extend credit and letters of credit. Additionally, we enter into guarantees and other similar
arrangements as part of transactions in the ordinary course of business. For additional information on each of
these arrangements, see Note 22—Commitments, Contingencies and Other Regulatory Matters of Item 8.
Financial Statements and Supplementary Data.
Contractual Obligations and Commitments
The following table summarizes our contractual obligations at December 31, 2010 and the effect such
obligations are expected to have on our liquidity and cash flow in future periods (dollars in millions):
Payments Due by Period
Total
Less Than
1 Year 1-3 Years 3-5 Years Thereafter
Securities sold under agreements to repurchase(1) $3,987.3 $1,093.0 $ 460.7 $ 530.1 $ 6,071.1
FHLB advances and other borrowings(1)(2) 604.6 519.2 945.9 1,378.7 3,448.4
Corporate debt(3) 169.8 737.8 512.4 1,857.1 3,277.1
Certificates of deposit and brokered certificates of
deposit(1)(4) 337.4 129.2 32.6 32.4 531.6
Uncertain tax positions 9.7 14.0 18.6 248.5 290.8
Operating lease payments(5) 20.7 35.5 31.0 47.8 135.0
Purchase obligations(6) 63.8 22.5 — — 86.3
Total contractual obligations $5,193.3 $2,551.2 $2,001.2 $4,094.6 $13,840.3
(1) Includes annual interest based on the contractual features of each transaction, using market rates at December 31, 2010. Interest rates are
assumed to remain at current levels over the life of all adjustable rate instruments.
(2) For subordinated debentures included in other borrowings, does not assume early redemption under current conversion provisions.
(3) Includes annual interest payments. Does not assume conversion for the non-interest bearing convertible debentures due 2019.
(4) Does not include sweep deposits, complete savings deposits, other money market and savings deposits or checking deposits as there are
no stated maturity dates and /or scheduled contractual payments.
(5) Includes facilities restructuring leases and is net of estimated future sublease income.
(6) Includes material purchase obligations for goods and services covered by non-cancelable contracts and contracts with termination
clauses. Includes contracts through the termination date, even if the contract is renewable.
As of December 31, 2010, the Company had $0.6 billion of unused lines of credit available to customers
under home equity lines of credit and $0.4 billion of unused credit card and commercial lines. As of
December 31, 2010, the Company had no commitments to purchase loans. The Company had a commitment to
originate and sell mortgage loans of $43.4 million and $5.5 million, respectively. The Company had a
commitment to purchase securities of $108.3 million and no commitments to sell securities. The Company also
had $8.7 million in commitments to fund low income housing tax credit partnerships and other limited
partnerships as of December 31, 2010. Additional information related to commitments and contingent liabilities
is detailed in Note 22—Commitments, Contingencies and Other Regulatory Matters of Item 8. Financial
Statements and Supplementary Data.
Other Liquidity Matters
We currently anticipate that our available cash resources and credit will be sufficient to meet our anticipated
working capital and capital expenditure requirements for at least the next 12 months. We may need to raise
additional funds in order to support regulatory capital needs at our Bank, reduce holding company debt, support
more rapid expansion, develop new or enhanced products and services, respond to competitive pressures, acquire
businesses or technologies or take advantage of unanticipated opportunities.
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