eTrade 2010 Annual Report Download - page 98

E*TRADE FINANCIAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF LOSS
(In thousands, except per share amounts)
Year Ended December 31,
2010 2009 2008
Revenue:
Operating interest income $1,546,713 $ 1,832,558 $ 2,469,940
Operating interest expense (320,430) (571,956) (1,201,934)
Net operating interest income 1,226,283 1,260,602 1,268,006
Commissions 431,000 547,993 515,551
Fees and service charges 142,377 192,516 199,956
Principal transactions 103,346 88,053 84,882
Gains (losses) on loans and securities, net 166,212 169,106 (100,473)
Other-than-temporary impairment (“OTTI”) (41,510) (232,139) (95,010)
Less: noncredit portion of OTTI recognized into other comprehensive income (loss)
(before tax) 3,840 143,044 —
Net impairment (37,670) (89,095) (95,010)
Other revenues 46,327 47,841 52,684
Total non-interest income 851,592 956,414 657,590
Total net revenue 2,077,875 2,217,016 1,925,596
Provision for loan losses 779,412 1,498,112 1,583,666
Operating expense:
Compensation and benefits 325,044 366,232 383,385
Clearing and servicing 147,493 170,711 185,082
Advertising and market development 132,150 114,399 175,250
Professional services 81,177 78,718 94,070
FDIC insurance premiums 77,728 94,258 31,258
Communications 73,342 84,381 96,792
Occupancy and equipment 70,915 78,360 85,766
Depreciation and amortization 87,931 83,337 82,483
Amortization of other intangibles 28,475 29,737 35,746
Facility restructuring and other exit activities 14,346 20,652 29,502
Other operating expenses 103,976 122,544 90,881
Total operating expense 1,142,577 1,243,329 1,290,215
Income (loss) before other income (expense), income tax expense (benefit) and
discontinued operations 155,886 (524,425) (948,285)
Other income (expense):
Corporate interest income 6,188 860 7,210
Corporate interest expense (167,130) (282,688) (362,160)
Gains (losses) on sales of investments, net 2,655 (1,714) (4,230)
Gains (losses) on early extinguishment of debt — (1,018,848) 10,084
Equity in income (loss) of investments and venture funds (740) (8,616) 18,462
Total other income (expense) (159,027) (1,311,006) (330,634)
Loss before income tax expense (benefit) and discontinued operations (3,141) (1,835,431) (1,278,919)
Income tax expense (benefit) 25,331 (537,669) (469,535)
Loss from continuing operations (28,472) (1,297,762) (809,384)
Income from discontinued operations, net of tax — — 297,594
Net loss $ (28,472) $(1,297,762) $ (511,790)
Basic loss per share from continuing operations $ (0.13) $ (11.85) $ (15.88)
Basic earnings per share from discontinued operations — — 5.84
Basic net loss per share $ (0.13) $ (11.85) $ (10.04)
Diluted loss per share from continuing operations $ (0.13) $ (11.85) $ (15.88)
Diluted earnings per share from discontinued operations — — 5.84
Diluted net loss per share $ (0.13) $ (11.85) $ (10.04)
Shares used in computation of per share data:
Basic 211,302 109,544 50,986
Diluted 211,302 109,544 50,986
See accompanying notes to consolidated financial statements
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