TD Bank 2002 Annual Report Download - page 40

Management’s Discussion and Analysis of Operating Performance
38
HOW WE PERFORMED IN 2002
TABLE 8Taxes
(millions of dollars) 2002 2001 2000 1999 1998
Income taxes
Consolidated statement of operations $ (406) $ (164) $ 296 $ 1,090 $ 611
Taxable equivalent adjustment 222 245 199 192 199
(184) 81 495 1,282 810
Other taxes
Payroll taxes 187 174 160 85 86
Capital taxes 97 98 76 77 71
GST and provincial sales taxes 162 149 92 82 93
Municipal and business taxes 93 91 93 71 60
Total other taxes 539 512 421 315 310
Total taxes $ 355 $ 593 $ 916 $ 1,597 $ 1,120
Effective income tax rate –operating cash basis123.5% 30.8% 38.7% 40.7% 42.0%
Effective total tax rate – operating cash basis155.9% 40.4% 45.4% 46.1% 50.0%
TABLE 9Loans to small and mid-sized business customers
(millions of dollars)
Loans authorized Amount outstanding
Loan amount 2002 2001 2000 2002 2001 2000
(thousands of dollars)
0 – 24 $ 1,081 $ 1,107 $ 1,029 $ 555 $ 590 $ 486
25 – 49 738 725 720 431 435 431
50 – 99 1,280 1,263 1,200 735 748 718
100 – 249 2,660 2,690 2,507 1,623 1,676 1,545
250 – 499 2,440 2,409 2,275 1,414 1,416 1,332
500 – 999 2,571 2,552 2,443 1,342 1,371 1,272
1,000 – 4,999 6,898 7,266 7,360 3,167 3,336 3,360
Total 1$ 17,668 $ 18,012 $ 17,534 $ 9,267 $ 9,572 $ 9,144
1Personal loans used for business purposes are not included in these totals.
TABLE 10 Fees paid to the shareholders’ auditors
(thousands of dollars) 2002 2001
Audit fees $ 6,629 $ 6,116
Audit-related fees1942 228
Tax advisory fees 3,205 2,108
Other fees2971 5,522
Total $ 11,747 $ 13,974
1Excludes the gain on the sale of the mutual fund record keeping and
custody business in 2002, restructuring costs related to acquisitions and
significant business restructuring initiatives (TD Securities in 2001,
TD Waterhouse in 2001, the acquisition of Newcrest in 2001 and the
acquisition of Canada Trust in 2000), the effect of real estate gains and
general allowance increases in 2001, goodwill and intangibles gross-up
and benefits as well as the special gain on the sale of TD Waterhouse
Group, Inc. in 1999.
Following the adoption of the U.S. Sarbanes-Oxley Act, the Audit
and Risk Management Committee (now the Audit Committee) has
revised its policy regarding fees paid to the shareholders’auditors.
Prior to the engagement of the Bank’s shareholders’ auditors,
the Audit Committee pre-approves the provision of services. In
making their determination regarding non-audit services, the
Audit Committee considers the provision of non-audit services
in the context of avoiding impact, real or perceived, on auditor
independence.
1Audit-related fees for 2002 primarily relate to fees paid for legislative and
regulatory compliance matters and audits related to acquisitions made by
the Bank.
2Other fees for 2002 primarily include fees paid for general consulting.
For 2001, other fees include fees paid for financial information systems
consulting, acquisition consulting and other general consulting.
The effective income tax rate on the reported basis is set out in
Note 12 of the Bank’s consolidated financial statements.