TD Bank 2002 Annual Report Download - page 53

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FINANCIAL RESULTS
Securities maturity schedule at year end
(millions of dollars) Remaining term to maturity
Within 1 to 3 3 to 5 5 to 10 Over 10 No specific 2002 2001
1 year years years years years maturity Total Total
Investment securities
Government and government -
insured securities
Canada $ 3,455 $ 92 $ 890 $ 192 $ 8 $ – $ 4,637 $ 6,646
Mortgage-backed securities170 7,195 853 – – – 8,118 7,609
Total Canada 3,525 7,287 1,743 192 8 – 12,755 14,255
Provinces 1 55 142 20 13 – 231 131
Total 3,526 7,342 1,885 212 21 – 12,986 14,386
Other debt securities
Canadian issuers 139 111 3 22 51 – 326 258
U.S. federal government 2,757 21 33 40 2 – 2,853 2,598
Other foreign governments 2,162 1,835 141 119 – – 4,257 4,738
Other issuers 1,342 1,563 141 839 27 – 3,912 3,955
Total 6,400 3,530 318 1,020 80 – 11,348 11,549
Equity securities
Preferred shares 175 236 511 98 – 471 1,491 1,771
Common shares – – – – – 2,977 2,977 3,304
Total 175 236 511 98 – 3,448 4,468 5,075
Total investment securities 10,101 11,108 2,714 1,330 101 3,448 28,802 31,010
Trading securities
Government and government -
insured securities
Canada 1,088 337 1,470 997 2,527 – 6,419 13,251
Provinces 189 338 1,005 700 628 – 2,860 2,794
Total 1,277 675 2,475 1,697 3,155 – 9,279 16,045
Other debt securities
Canadian issuers 88 574 385 537 344 – 1,928 1,271
U.S. federal government 876 451 127 140 50 – 1,644 1,563
Other foreign governments 73 240 359 909 1,267 – 2,848 3,327
Other issuers 2,647 4,001 5,406 7,948 3,152 – 23,154 30,077
Total 3,684 5,266 6,277 9,534 4,813 – 29,574 36,238
Equity securities
Preferred shares – 1 312 9 511 129 962 812
Common shares – – – – – 13,580 13,580 13,089
Total – 1 312 9 511 13,709 14,542 13,901
Total trading securities 4,961 5,942 9,064 11,240 8,479 13,709 53,395 66,184
Total securities2$ 15,062 $ 17,050 $ 11,778 $ 12,570 $ 8,580 $ 17,157 $82,197 $97,194
1Mortgage-backed securities are guaranteed by the government of Canada.
2Includes loan substitutes in the amount of $5 million (2001 – $20 million).
NOTE 2Securities
(p) Provision for income taxes
The Bank recognizes both the current and future income tax
consequences of all transactions that have been recognized in
the financial statements. Future income tax assets and liabilities
are determined based on the tax rates that are expected to apply
when the assets or liabilities are reported for tax purposes.
(q) Earnings per share
As of November 1, 2001, the Bank adopted the new accounting
standard on earnings per share which requires the use of the
treasury stock method to calculate diluted earnings per share.
The treasury stock method determines the number of additional
common shares by assuming that the outstanding stock options,
whose exercise price is less than the average market price of the
Bank’s common stock during the period, are exercised and then
reduced by the number of common shares assumed to be
repurchased with the exercise proceeds. The Bank has adopted
this standard retroactively with restatement of prior years.
Basic earnings per share is determined by dividing net income
applicable to common shares by the average number of common
shares outstanding for the period. Diluted earnings per share is
determined using the same method as basic earnings per share
except that the weighted average number of common shares out-
standing includes the potential dilutive effect of stock options
granted by the Bank as determined under the treasury stock
method. Such potential dilution is not recognized in a loss period.
(r) Comparative figures
Certain comparative figures have been reclassified to conform
with the presentation adopted in 2002.