eTrade 2011 Annual Report Download - page 62

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 21—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, 2011 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
Less Than 1
Year 1-3 Years 3-5 Years Thereafter Total
Securities sold under agreements to repurchase(1) $3,218.7 $1,178.3 $ 433.0 $ 302.4 $ 5,132.4
FHLB advances and other borrowings(1)(2) 910.3 486.4 834.8 1,098.4 3,329.9
Corporate debt(3) 164.8 329.6 969.9 1,079.8 2,544.1
Uncertain tax positions 10.2 17.1 20.7 341.1 389.1
Certificates of deposit and brokered certificates of
deposit(1)(4) 146.3 46.5 25.1 30.0 247.9
Operating lease payments(5) 21.1 34.9 35.8 53.2 145.0
Purchase obligations(6) 54.6 19.1 0.6 — 74.3
Total contractual obligations $4,526.0 $2,111.9 $2,319.9 $2,904.9 $11,862.7
(1) Includes annual interest based on the contractual features of each transaction, using market rates at December 31, 2011. 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, 2011, the Company had $0.4 billion of unused lines of credit available to customers
under home equity lines of credit and $0.3 billion of unused consumer and other lines. As of December 31, 2011,
the Company had no commitments to purchase loans. The Company had a commitment to originate and sell
mortgage loans of $140.8 million and $11.7 million, respectively. The Company had a commitment to purchase
and sell securities of $524.6 million and $192.5 million, respectively. The Company also had $6.4 million in
commitments to fund low income housing tax credit partnerships and other limited partnerships as of
December 31, 2011. Additional information related to commitments and contingent liabilities is detailed in Note
21—Commitments, Contingencies and Other Regulatory Matters of Item 8. Financial Statements and
Supplementary Data.
Other Liquidity Matters
We do not hold any positions in sovereign debt of European countries and therefore have no direct exposure
to the concerns regarding the creditworthiness of certain sovereign governments in Europe.
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