Note 1: Organization and Description of the Business Note 2: Significant Accounting Policies Note 3: Securities Owned and Securities Sold, Not Yet Purchased Note 4: Receivable From/Payable to Brokers and Dealers Note 5: Goodwill and Intangible Assets Note 6: Investment in Deephaven Sponsored Fund Note 7: Significant Customers Note 8: International Charges Note 9: Writedown of Assets and Lease Loss Accrual Note 10: Fixed Assets and Leasehold Improvements Note 11: Commitments and Contingent Liabilities Note 12: Earnings Per Share Note 13: Employee Benefit Plan Note 14: Income Taxes Note 15: Long-Term Incentive Plans Note 16: Financial Instruments With Off-Balance Sheet Risk and Concentrations of Credit Risk Note 17: Net Capital Requirements Note 18: Subsequent Events Note 19: Business Segments Note 20: Condensed Financial Statements of Knight Trading Group, Inc. (Parent Only) Note 9: WRITEDOWN OF ASSETS AND LEASE LOSS ACCRUAL The writedown of assets and lease loss accrual in 2002 was $16.2 million.The writedown primarily consists of $8.9 million related to costs associated with excess real estate capacity, $3.6 million related to the writedown of fixed assets that are no longer actively used, $3.0 million related to impaired strategic investments, and $700,000 related to a writedown of exchange seats. The writedown of assets and lease loss accrual in 2001 was $20.5 million. The writedown primarily consisted of $10.7 million related to impaired strategic investments, $6.8 million related to the writedown of fixed assets that are no longer actively used, $1.6 million related to a writedown of exchange seats and $1.4 million related to costs associated with excess real estate capacity.