eTrade 2011 Annual Report Download - page 120

Download and view the complete annual report

Please find page 120 of the 2011 eTrade annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 216

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143
  • 144
  • 145
  • 146
  • 147
  • 148
  • 149
  • 150
  • 151
  • 152
  • 153
  • 154
  • 155
  • 156
  • 157
  • 158
  • 159
  • 160
  • 161
  • 162
  • 163
  • 164
  • 165
  • 166
  • 167
  • 168
  • 169
  • 170
  • 171
  • 172
  • 173
  • 174
  • 175
  • 176
  • 177
  • 178
  • 179
  • 180
  • 181
  • 182
  • 183
  • 184
  • 185
  • 186
  • 187
  • 188
  • 189
  • 190
  • 191
  • 192
  • 193
  • 194
  • 195
  • 196
  • 197
  • 198
  • 199
  • 200
  • 201
  • 202
  • 203
  • 204
  • 205
  • 206
  • 207
  • 208
  • 209
  • 210
  • 211
  • 212
  • 213
  • 214
  • 215
  • 216

Available-for-sale Securities
Trading
Securities
Agency
Mortgage-
backed
Securities and
CMOs
Non-agency
CMOs
Corporate
Investments
Balance, December 31, 2009 $1,491 $ 17,972 $ 234,629 $ 173
Realized and unrealized gains (losses):(1)
Included in earnings(2) (938) — (35,799) —
Included in other comprehensive income (loss)(3) — — 80,695 (9)
Purchases, sales, other settlements and issuances, net 77 — (32,520) (119)
Transfers in to Level 3(4) — — 139,088 —
Transfers out of Level 3(4) — (17,972) (190,873) (45)
Balance, December 31, 2010 $ 630 $ — $ 195,220 $ —
(1) The majority of total realized and unrealized gains (losses) were related to instruments held at December 31, 2010.
(2) The majority of realized and unrealized gains (losses) included in earnings are reported in the net impairment line item.
(3) The majority of realized and unrealized gains (losses) included in other comprehensive income (loss) are reported in the net change from
available-for-sale securities line item.
(4) The Company’s transfers in and out of Level 3 are as of the beginning of the reporting period on a quarterly basis.
Available-for-sale Securities
Trading
Securities
Agency
Mortgage-
backed
Securities
and
CMOs
Non-agency
CMOs
Corporate
Investments
Derivative
Instruments,
Net(5)
Balance, December 31, 2008 $ 33,406 $ — $304,661 $170 $(492)
Realized and unrealized gains (losses):(1)
Included in earnings(2) 2,016 — (86,215) — 492
Included in other comprehensive income
(loss)(3) — (783) 102,346 3 —
Purchases, sales, other settlements and issuances,
net (37,377) 4 (84,050) — —
Transfers in and/or (out) of Level 3(4) 3,446 18,751 (2,113) — —
Balance, December 31, 2009 $ 1,491 $17,972 $234,629 $173 $ —
(1) The majority of total realized and unrealized gains (losses) were related to instruments held at December 31, 2009.
(2) The majority of realized and unrealized gains (losses) included in earnings are reported in the net impairment line item.
(3) The majority of realized and unrealized gains (losses) included in other comprehensive income (loss) are reported in the net change from
available-for-sale securities line item.
(4) The Company’s transfers in and out of Level 3 are as of the beginning of the reporting period on a quarterly basis.
(5) Represents derivative assets net of derivative liabilities for presentation purposes only.
Level 3 Assets and Liabilities
Level 3 assets and liabilities included instruments whose value is determined using pricing models,
discounted cash flow methodologies, or similar techniques, as well as instruments for which the determination of
fair value requires significant management judgment or estimation. While the Company’s fair value estimates of
Level 3 instruments utilized observable inputs where available, the valuation included significant management
judgment in determining the relevance and reliability of market information considered.
117