TD Bank 2010 Annual Report Download - page 127

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TD BANK GROUP ANNUAL REPORT 2010 FINANCIAL RESULTS 125
As at October 31, 2010, the total unutilized balance of restructuring
costs of $11 million (2009 – $20 million; 2008 – $29 million) shown
in the following table is included in other liabilities in the Consolidated
Balance Sheet:
Restructuring Costs
(millions of Canadian dollars) 2010 2009 2008
Human resources Real estate Other Total Total Total
Balance at beginning of year $ – $ 20 $ – $ 20 $ 29 $ 29
Restructuring costs arising during the year:
U.S. Personal and Commercial Banking 7 – 10 17 36 48
Amount utilized during the year:
Wholesale Banking – 2 – 2 5 7
U.S. Personal and Commercial Banking 7 7 8 22 37 41
Foreign exchange and other adjustments – (2) – (2) (3) –
Balance at end of year $ – $ 9 $ 2 $ 11 $ 20 $ 29
Provision for (Recovery of) Income Taxes
(millions of Canadian dollars) 2010 2009 2008
Provision for income taxes – Consolidated Statement of Income
Current income taxes $ 1,164 $ (95) $ 429
Future income taxes 98 336 108
1,262 241 537
Provision for income taxes – Statement of Other Comprehensive Income
Current income taxes 420 688 (1,092)
Future income taxes 548 798 (598)
968 1,486 (1,690)
Income taxes – other non-income related items including
business combinations and other transition adjustments
Current income taxes – (18) –
Future income taxes (421) 348 (463)
(421) 330 (463)
Total provision for (recovery of) income taxes $ 1,809 $ 2,057 $ (1,616)
Current income taxes
Federal $ 878 $ 539 $ (529)
Provincial 539 297 (237)
Foreign 167 (261) 103
1,584 575 (663)
Future income taxes
Federal (25) 446 118
Provincial (16) 238 57
Foreign 266 798 (1,128)
225 1,482 (953)
Total provision for (recovery of) income taxes $ 1,809 $ 2,057 $ (1,616)
TD Banknorth and TD Banknorth officers and directors. The parties
agreed to settle the litigation in February 2009 for $61.3 million
(US$50 million) of which $3.7 million (US$3 million) had been previ-
ously accrued on privatization. The Court of Chancery in Delaware
approved the settlement of the TD Banknorth Shareholders’ Litigation
effective June 24, 2009, and the settlement became final.
iii) A positive adjustment of $477 million resulted from the reversal of
a part of the Bank’s reserve related to the Enron litigation in 2008.
the assets or liabilities are reported for tax purposes. The Bank records
a valuation allowance to the extent the future tax asset exceeds the
amount that is more likely than not to be realized.
Non-interest expenses – other include the following:
i) A special assessment charge of $55 million before tax ($35 million
after tax) or US$49 million before tax (US$31 million after tax),
was finalized by the Federal Deposit Insurance Corporation (FDIC),
in the U.S., on May 22, 2009.
ii) A charge for settlement of TD Banknorth shareholder litigation. Upon
the announcement of the privatization of TD Banknorth in November
2006, certain minority shareholders of TD Banknorth initiated
class action litigation alleging various claims against the Bank,
The Bank recognizes both the current and future income tax of all
transactions that have been recognized in the 2010 Consolidated
Financial Statements. Future income tax assets and liabilities are
determined based on the tax rates that are expected to apply when
OTHER NON-INTEREST EXPENSES
NOTE 26
INCOME TAXES
NOTE 27