eTrade 2011 Annual Report Download - page 54

consisted of corporate interest expense of $167.1 million resulting from our interest-bearing corporate debt.
Corporate interest expense decreased 41% to $167.1 million for the year ended December 31, 2010 due to the
reduction in interest-bearing debt in connection with our Debt Exchange in the third quarter of 2009. The loss for
the year ended December 31, 2009 was due primarily to the $968.3 million pre-tax non-cash loss on
extinguishment of debt related to the Debt Exchange, which is reported in the total other income (expense) line
item.
BALANCE SHEET OVERVIEW
The following table sets forth the significant components of our consolidated balance sheet (dollars in
millions):
Variance
December 31, 2011 vs. 2010
2011 2010 Amount %
Assets:
Cash and equivalents $ 2,099.8 $ 2,374.3 $ (274.5) (12)%
Cash and investments required to be segregated under federal or
other regulations 1,275.6 609.5 666.1 109%
Securities(1) 21,785.4 17,330.6 4,454.8 26%
Margin receivables 4,826.3 5,120.6 (294.3) (6)%
Loans receivable, net 12,332.8 15,121.9 (2,789.1) (18)%
Investment in FHLB stock 140.2 164.4 (24.2) (15)%
Other(2) 5,480.4 5,651.7 (171.3) (3)%
Total assets $47,940.5 $46,373.0 $ 1,567.5 3%
Liabilities and shareholders’ equity:
Deposits $26,460.0 $25,240.3 $ 1,219.7 5%
Wholesale borrowings(3) 7,752.4 8,620.0 (867.6) (10)%
Customer payables 5,590.9 5,020.1 570.8 11%
Corporate debt 1,493.5 2,145.9 (652.4) (30)%
Other liabilities 1,715.7 1,294.3 421.4 33%
Total liabilities 43,012.5 42,320.6 691.9 2%
Shareholders’ equity 4,928.0 4,052.4 875.6 22%
Total liabilities and shareholders’ equity $47,940.5 $46,373.0 $ 1,567.5 3%
(1) Includes balance sheet line items trading, available-for-sale and held-to-maturity securities.
(2) Includes balance sheet line items property and equipment, net, goodwill, other intangibles, net and other assets.
(3) Includes balance sheet line items securities sold under agreements to repurchase and FHLB advances and other borrowings.
Cash and Investments Required to be Segregated under Federal or Other Regulations
The level of cash and investments required to be segregated under federal or other regulations, or segregated
cash and investments, is driven largely by the amount of customer payables we hold as a liability in excess of the
amount of margin receivables we hold as an asset. This difference represents excess customer cash that we are
required by our regulators to segregate in a cash account for the exclusive benefit of our brokerage customers.
Segregated cash and investments increased by $0.7 billion during the year ended December 31, 2011. This
increase was driven primarily by an increase in customer payables of $0.6 billion during the year ended
December 31, 2011.
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