TD Bank 2002 Annual Report Download - page 77

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FINANCIAL RESULTS
Human Real
(millions of dollars) Resources Estate Technology Other Total
Balance at beginning of year $ 192 $ 127 $ 14 $ 4 $ 337
Amount utilized during the year
CT 66 84 13 2 165
TD Waterhouse 2 12 – 1 15
TD Securities 118 2 – 1 121
Balance at end of year $ 6 $ 29 $ 1 $ – $ 36
NOTE 21 Earnings (loss) per common share
Basic and diluted earnings (loss) per common share at October 31 are as follows:
(millions of dollars) 2002 2001 2000
Basic earnings (loss) per common share
Net income (loss) $ (76) $ 1,383 $ 1,025
Preferred dividends 84 83 56
Net income (loss) applicable to common shares (160) 1,300 969
Average number of common shares outstanding (millions) 641.0 627.0 621.6
Basic earnings (loss) per common share $ (.25) $ 2.07 $ 1.56
Diluted earnings (loss) per common share
Net income (loss) applicable to common shares $ (160) $ 1,300 $ 969
Average number of common shares outstanding (millions) 641.0 627.0 621.6
Stock options potentially exercisable as determined under
the treasury stock method15.9 8.5 10.5
Average number of common shares outstanding – diluted 646.9 635.5 632.1
Diluted earnings (loss) per common share2$ (.25) $ 2.05 $ 1.53
1Excluded from the computation of diluted earnings (loss) per common share
were weighted average options outstanding of 7,944,584 with a weighted
exercise price of $40.14 (2001 – 2,586,705 at $41.69; 2000 –
1,808,848 at $36.21) as the options’ exercise prices were greater than
the average market price of the Bank’s common shares.
2 For 2002, the effect of stock options potentially exercisable on earnings (loss)
per common share was anti-dilutive, therefore basic and diluted earnings (loss)
per common share are the same.
During the fourth quarter of fiscal 2001, TD Securities announced
a restructuring of its operations and as a result recorded pre-
tax restructuring costs of $130 million. The restructuring costs
related primarily to employee severance. The restructuring was
substantially completed by the end of the fourth quarter of
fiscal 2002.
In the third quarter of fiscal 2001, TD Waterhouse announced
a restructuring of its operations and pre-tax costs of $54 million
were charged to income, primarily for employee severance and
real estate rationalization. The restructuring was completed by
the end of the third quarter of fiscal 2002.
At the time of the acquisition of Newcrest in 2001, the Bank
determined it was necessary to restructure the combined opera-
tions. Pre-tax restructuring costs of $55 million were charged to
income in the first quarter of fiscal 2001, primarily for employee
severance. The restructuring was completed by the end of the
second quarter of fiscal 2001.
In 2000, following the acquisition of CT, the Bank determined
that it was necessary to restructure the combined operations.
Pre-tax restructuring costs of $475 million were recorded in the
second quarter of fiscal 2000. The restructuring costs related pri-
marily to severance and employee support costs, branch closures,
rationalization of regional and head office space requirements,
lease termination, and other expenses. The restructuring was
substantially completed by the end of the fourth quarter of fiscal
2002. The remaining accrual of $28 million at October 31,
2002 will be incurred in fiscal 2003 and is included in other
liabilities in the consolidated balance sheet.
NOTE 20 Restructuring costs