TD Bank 2007 Annual Report Download - page 84

TD BANK FINANCIAL GROUP ANNUAL REPORT 2007 Financial Results80
Consolidated Statement of Changes in Shareholders’ Equity
For the years ended October 31
(millions of Canadian dollars) 2007 2006 2005
Common shares (Note 13)
Balance at beginning of year $ 6,334 $ 5,872 $ 3,373
Proceeds from shares issued on exercise of options 173 119 125
Shares issued as a result of dividend reinvestment plan 85 328 380
Impact of shares (acquired) sold in Wholesale Banking 30 (20) 6
Repurchase of common shares (45)(35) –
Issued on acquisition of TD Banknorth (Note 28) ––1,988
Issued on acquisition of VFC (Note 28) –70 –
Balance at end of year 6,577 6,334 5,872
Preferred shares
Balance at beginning of year 425 – –
Shares issued (Note 13) –425 –
Balance at end of year 425 425 –
Contributed surplus
Balance at beginning of year 66 40 20
Stock options (Note 15) 126 20
Conversion of TD Banknorth options on privatization (Note 15) 52 – –
Balance at end of year 119 66 40
Retained earnings
Balance at beginning of year 13,725 10,650 9,540
Transition adjustment on adoption of Financial Instruments standards (Note 1) 80 – –
Net income 3,997 4,603 2,229
Common dividends (1,517)(1,278)(1,098)
Preferred dividends (20)(22) –
Premium paid on repurchase of common shares (311)(229) –
Other –1(21)
Balance at end of year 15,954 13,725 10,650
Accumulated other comprehensive income (loss), net of income
taxes (Note 14)
Balance at beginning of year (918)(696)(265)
Transition adjustment on adoption of Financial Instrument standards (Note 1) 426 – –
Other comprehensive income (loss) for the period (1,179)(222)(431)
Balance at end of year (1,671) (918)(696)
Total shareholders’ equity $ 21,404 $ 19,632 $ 15,866
Consolidated Statement of Comprehensive Income
For the years ended October 31
(millions of Canadian dollars) 2007 2006 2005
Net income $ 3,997 $ 4,603 $ 2,229
Other comprehensive income (loss), net of income taxes
Change in unrealized gains and (losses) on available-for-sale securities,
net of hedging activites1159 – –
Reclassification to earnings in respect of available-for-sale securities2(53)– –
Change in foreign currency translation gains and (losses) on investments
in subsidiaries, net of hedging activities3,4 (1,155)(222) (431)
Change in gains and (losses) on derivative instruments designated as
cash flow hedges5(170)– –
Reclassification to earnings of losses on cash flow hedges640 – –
Other comprehensive income for the year (1,179)(222)(431)
Comprehensive income for the year $ 2,818 $ 4,381 $ 1,798
Certain comparative amounts have been reclassified to conform to the current period’s presentation.
The accompanying Notes are an integral part of these Consolidated Financial Statements.
1 Net of income tax expense of $94 million.
2 Net of income tax expense of $32 million.
3 Net of income tax expense of $909 million (2006 – $209 million;
2005 – $141 million).
4 Includes $1,864 million of after-tax gains (losses) arising from hedges
of the Bank’s investment in foreign operations (2006 – $432 million;
2005 – $287 million).
5 Net of income tax benefit of $91 million.
6 Net of income tax benefit of $22 million.