It is important to note these metrics and other non-GAAP measures may involve judgment by management and should be considered in addition to, not as a substitute for, or superior to, net income (loss), consolidated statements of cash flows, or other measures of financial performance prepared in accordance with GAAP. For additional information on the adjustments to these non-GAAP measures, please see the Company’s financial statements and “Management’s Discussion and Analysis of Results of Operations and Financial Condition” that will be included in the periodic report the Company expects to file with the SEC with respect to the financial periods discussed herein.

ENDNOTES

(1) The following table provides a reconciliation for the calculation of the income tax impact related to legal settlements and reserves on diluted EPS (dollars in thousands, except per share amounts):
      Q2 2012
Amount   Diluted EPS
Reversal of the ARS reserve $ 10,190   $ 0.03

Legal settlements and other reserves
  (3,117 )     (0.01 )

Legal settlements and reserves
7,073 0.02

Income tax benefit related to legal settlements and reserves
  (3,310 )     (0.01 )

Legal settlements and reserves, after tax
$ 3,763     $ 0.01  
 
 

(2) The annualized growth rate for net new brokerage assets is calculated by annualizing net new brokerage assets during the current period divided by the sum of security holdings, customer payables (cash), customer cash balances held by third parties and sweep deposits for the previous period end.

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