eTrade 2012 Annual Report Download - page 62

Corporate Debt
Corporate debt by type is shown as follows (dollars in millions):
Face Value Discount
Fair Value Hedge
Adjustment Net
December 31, 2012
Interest-bearing notes:
6
3
⁄ 4 % Notes, due 2016 $ 435.0 $ (5.8) $ — $ 429.2
6% Notes, due 2017 505.0 (4.6) — 500.4
6
3
⁄ 8 % Notes, due 2019 800.0 (7.3) — 792.7
Total interest-bearing notes 1,740.0 (17.7) — 1,722.3
Non-interest-bearing debt:
0% Convertible debentures, due 2019 42.7 — — 42.7
Total corporate debt $1,782.7 $ (17.7) $ — $1,765.0
Face Value Discount
Fair Value Hedge
Adjustment Net
December 31, 2011
Interest-bearing notes:
7
7
⁄ 8 % Notes, due 2015 $ 243.2 $ (1.2) $ 7.4 $ 249.4
6
3
⁄ 4 % Notes, due 2016 435.0 (7.4) — 427.6
12
1
⁄ 2 % Springing lien notes, due 2017 930.2 (162.9) 6.2 773.5
Total interest-bearing notes 1,608.4 (171.5) 13.6 1,450.5
Non-interest-bearing debt:
0% Convertible debentures, due 2019 43.0 — — 43.0
Total corporate debt $1,651.4 $(171.5) $13.6 $1,493.5
During the fourth quarter of 2012, we issued an aggregate principal amount of $505 million of 6% Notes
and $800 million of 6
3
⁄ 8 % Notes. We used the proceeds to redeem all of the outstanding 12
1
⁄ 2 % Springing lien
notes and 7
7
⁄ 8 % Notes, which resulted in $256.9 million in losses on early extinguishment for the year ended
December 31, 2012. This transaction will result in an annual after-tax savings of approximately $60 million.
Shareholders’ Equity
The activity in shareholders’ equity during the year ended December 31, 2012 is summarized as follows
(dollars in millions):
Common Stock /
Additional Paid-In
Capital
Accumulated Deficit /
Other
Comprehensive Loss Total
Beginning balance, December 31, 2011 $7,309.7 $(2,381.7) $4,928.0
Net loss — (112.6) (112.6)
Net change from available-for-sale securities — 68.6 68.6
Net change from cash flow hedging instruments — 5.6 5.6
Other(1) 12.4 2.5 14.9
Ending balance, December 31, 2012 $7,322.1 $(2,417.6) $4,904.5
(1) Other includes employee share-based compensation, conversions of convertible debentures and changes in accumulated other
comprehensive loss from foreign currency translation.
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