eTrade 2012 Annual Report Download - page 57

Corporate/Other
The following table summarizes corporate/other financial information for the years ended December 31,
2012, 2011 and 2010 (dollars in millions):
Variance
Year Ended December 31, 2012 vs. 2011
2012 2011 2010 Amount %
Total net revenue $ (0.2) $ (0.1) $ — $ (0.1) *
Compensation and benefits 81.0 70.3 80.2 10.7 15%
Professional services 37.5 35.4 28.9 2.1 6%
Occupancy and equipment 5.5 2.7 2.6 2.8 104%
Communications 1.7 1.5 1.7 0.2 13%
Depreciation and amortization 16.3 18.4 21.0 (2.1) (11)%
Facility restructuring and other exit activities 7.7 7.7 14.3 — 0%
Other operating expenses 22.6 34.5 25.8 (11.9) (34)%
Total operating expense 172.3 170.5 174.5 1.8 1%
Operating loss (172.5) (170.6) (174.5) (1.9) 1%
Total other income (expense) (513.7) (175.8) (159.0) (337.9) 192%
Corporate/other loss $(686.2) $(346.4) $(333.5) $(339.8) 98%
* Percentage not meaningful.
The corporate/other category includes costs that are centrally-managed, technology related costs incurred to
support centrally-managed functions, restructuring and other exit activities, corporate debt and corporate
investments.
2012 Compared to 2011
The corporate/other loss before income taxes was $686.2 million for the year ended December 31, 2012,
compared to $346.4 million in 2011.
The operating loss increased 1% to $172.5 million for the year ended December 31, 2012 compared to 2011
due primarily to an increase in compensation and benefits as a result of $13 million in severance associated with
the departure of our former Chief Executive Officer that was recorded during the year ended December 31, 2012.
This increase was partially offset by a decrease in other operating expense primarily due to the recording of a net
estimated liability of $10.8 million related to a memorandum of understanding that we entered into to settle the
Freudenberg Action during the year ended December 31, 2011, for which there was no similar expense in 2012.
Total other income (expense) included corporate interest expense on interest-bearing corporate debt for the
years ended December 31, 2012 and 2011. Corporate interest expense increased 1% to $179.9 million year ended
December 31, 2012 compared to 2011. In addition, for the year ended December 31, 2012, $256.9 million in
losses on early extinguishment of debt were recorded, driven by the early extinguishment of all of the
outstanding 12
1
⁄ 2 % Springing lien notes and 7
7
⁄ 8 % Notes during 2012. Offsetting corporate interest expense for
the year ended December 31, 2011 as a $3.1 million in gain on early extinguishment of debt related to the call of
the 7
3
⁄ 8 % Notes in the second quarter of 2011.
2011 Compared to 2010
The corporate/other loss before income tax was $346.4 million for the year ended December 31, 2011,
compared to $333.5 million in 2010. Compensation and benefits decreased 12% to $70.3 million due primarily to
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