eTrade 2011 Annual Report Download - page 147

In June 2011, the Company granted a security interest to the holders of the 2017 Notes and the 2019 Notes
pursuant to the terms of the applicable indentures. Under the applicable indentures, the security interest is limited
to $300 million of property and assets owned by certain unregulated subsidiaries. The security interest granted
was secured by collateral significantly less in value than $300 million. Also in June 2011, certain of the
Company’s subsidiaries issued guarantees on each outstanding series of senior notes and 2019 Notes. E*TRADE
Bank and E*TRADE Securities LLC, among others, did not issue such guarantees.
Corporate Debt Covenants
Certain of the Company’s corporate debt described above have terms which include financial maintenance
covenants. As of December 31, 2011, the Company was in compliance with all such maintenance covenants.
Future Maturities of Corporate Debt
Scheduled principal payments of corporate debt as of December 31, 2011 are as follows (dollars in
thousands):
Years ending December 31,
2012 $ —
2013 —
2014 —
2015 243,177
2016 435,000
Thereafter 973,242
Total future principal payments of corporate debt 1,651,419
Unamortized discount and fair value adjustment, net (157,867)
Total corporate debt $1,493,552
NOTE 14—OTHER LIABILITIES
Other liabilities consist of the following (dollars in thousands):
December 31,
2011 2010
Deposits received for securities loaned $ 505,548 $ 570,691
Derivative liabilities 358,203 106,863
Income tax-related liabilities 347,579 171,411
Accounts payable and accrued expenses 218,223 144,390
Other payables to brokers, dealers and clearing organizations 135,094 157,031
Securities purchased collateral not received 65,815 —
Subserviced loan advances 33,618 114,232
Other 51,593 29,711
Total other liabilities $1,715,673 $1,294,329
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