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Condensed Financial Information (Parent Company Only)
12 Months Ended
Dec. 31, 2017
Condensed Financial Information of Parent Company Only Disclosure [Abstract]  
CONDENSED FINANCIAL INFORMATION (PARENT COMPANY ONLY)
NOTE 21—CONDENSED FINANCIAL INFORMATION (PARENT COMPANY ONLY)

CONDENSED STATEMENT OF COMPREHENSIVE INCOME
(In millions)
 
Year Ended December 31,
 
2017
 
2016
 
2015
Dividends from subsidiaries(1)
$
350

 
$
858

 
$
859

Other revenues
377

 
328

 
317

Total net revenue
727

 
1,186

 
1,176

Total non-interest expense
611

 
501

 
560

Income before income tax expense (benefit) and equity in income (loss) of consolidated subsidiaries
116

 
685

 
616

Income tax expense (benefit)
75

 
456

 
(287
)
Equity in undistributed income (loss) of subsidiaries
573

 
323

 
(635
)
 
 
 
 
 
 
Net income (2)
614

 
552

 
268

Other comprehensive income (loss)
111

 
(38
)
 
150

Comprehensive income
$
725

 
$
514

 
$
418

(1) Includes $423 million and $281 million from E*TRADE Bank for the years ended December 31, 2016 and 2015, respectively.
(2) Net income available to common shareholders was $589 million for the year ended December 31, 2017 and includes the impact of $25 million of preferred stock dividends.
CONDENSED BALANCE SHEET
(In millions)
 
December 31,
 
2017
 
2016
ASSETS
 
 
 
Cash and equivalents
$
493

 
$
416

Property and equipment, net
157

 
148

Investment in consolidated subsidiaries(1) 
7,268

 
6,523

Receivable from subsidiaries
59

 
38

Other assets
202

 
332

Total assets
$
8,179

 
$
7,457

LIABILITIES AND SHAREHOLDERS’ EQUITY
 
 
 
Liabilities:
 
 
 
Corporate debt
$
991

 
$
994

Other liabilities
257

 
191

Total liabilities
1,248

 
1,185

Total shareholders’ equity
6,931

 
6,272

Total liabilities and shareholders’ equity
$
8,179

 
$
7,457

(1) Includes investment of $3.7 billion and $3.2 billion in E*TRADE Bank as of December 31, 2017 and 2016, respectively.
CONDENSED STATEMENT OF CASH FLOWS
(In millions)
 
Year Ended December 31,
 
2017
 
2016
 
2015
Cash flows from operating activities:
 
 
 
 
 
Net income
$
614

 
$
552

 
$
268

Adjustments to reconcile net income to net cash provided by operating activities:
 
 
 
 
 
Depreciation and amortization
51

 
48

 
44

Equity in undistributed (income) loss from subsidiaries
(573
)
 
(323
)
 
635

Losses on early extinguishment of debt
9

 

 
5

Other
213

 
585

 
(152
)
Net cash provided by operating activities
314

 
862

 
800

Cash flows from investing activities:
 
 
 
 
 
Capital expenditures for property and equipment
(59
)
 
(36
)
 
(33
)
Cash contributions to subsidiaries
(61
)
 
(766
)
 
(147
)
Other
6

 
16

 

Net cash used in investing activities
(114
)
 
(786
)
 
(180
)
Cash flows from financing activities:
 
 
 
 
 
Net proceeds from issuance of senior notes
999

 

 
460

Payments on senior notes
(1,000
)
 

 
(800
)
Issuance of preferred stock
300

 
400

 

Repurchases of common stock
(362
)
 
(452
)
 
(50
)
Preferred stock dividends
(25
)
 

 

Other
(35
)
 
(40
)
 
(18
)
Net cash used in financing activities
(123
)
 
(92
)
 
(408
)
Increase (decrease) in cash and equivalents
77

 
(16
)
 
212

Cash and equivalents, beginning of period
416

 
432

 
220

Cash and equivalents, end of period
$
493

 
$
416

 
$
432


Parent Company Guarantees
Guarantees are contingent commitments issued by the parent for the purpose of guaranteeing the financial obligations of a subsidiary to a third party. The financial obligations of the parent and the relevant subsidiary do not change by the existence of a parent guarantee. Rather, upon the occurrence of certain events, the guarantee shifts ultimate payment responsibility of an existing financial obligation from the relevant subsidiary to the parent company. During the year ended December 31, 2017, no claims had been made against the parent for payment under any guarantees and thus, no obligations have been recognized. The parent has not provided any guarantees that are collateralized.