Bank of Montreal 2000 Annual Report Download - page 90

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Notes to Consolidated Financial Statements
66 ■Bank of Montreal Group of Companies Annual Report 2000
Condensed Consolidated Statement of Income
For the Year Ended October 31 (Canadian $ in millions except per share amounts) 2000 1999 1998
Canadian Increase United States Canadian Increase United States Canadian Increase United States
GAAP (Decrease) GAAP GAAP (Decrease) GAAP GAAP (Decrease) GAAP
Interest, Dividend and Fee Income $ 14,303 $
–
$ 14,303 $ 13,174 $ (34)(2) $ 13,140 $ 14,121 $ (8)(2) $ 14,113
Interest Expense 10,099
–
10,099 8,895
–
8,895 10,097
–
10,097
Net Interest Income 4,204
–
4,204 4,279 (34) 4,245 4,024 (8) 4,016
Provision for credit losses 358
–
358 320
–
320 130
–
130
Net Interest Income After
Provision for Credit Losses 3,846
–
3,846 3,959 (34) 3,925 3,894 (8) 3,886
Other Income 4,326 (19)(3) 4,307 3,511 (15)(3) 3,496 3,118 130(3) 3,248
Net Interest and Other Income 8,172 (19) 8,153 7,470 (49) 7,421 7,012 122 7,134
Total non-interest expense before
restructuring charge 5,301 111(4) 5,412 5,147 161(4) 5,308 4,785 207(4) 4,992
Restructuring charge (43)
–
(43) 141
–
141
–––
Total non-interest expense 5,258 111 5,369 5,288 161 5,449 4,785 207 4,992
Income Before Provision for
Income Taxes, Non-Controlling
Interest in Subsidiaries and Goodwill 2,914 (130) 2,784 2,182 (210) 1,972 2,227 (85) 2,142
Income taxes 989 (35)(5) 954 736 (58) 678 810 8 818
1,925 (95) 1,830 1,446 (152) 1,294 1,417 (93) 1,324
Non-controlling interest 19
–
19 21
–
21 25
–
25
Net Income Before Goodwill 1,906 (95) 1,811 1,425 (152) 1,273 1,392 (93) 1,299
Amortization of goodwill,
net of applicable income tax 49 (49)(4[viii])
–
43 (43)(4[viii])
–
42 (42)(4[viii])
–
Net Income $ 1,857 $ (46) $ 1,811 $ 1,382 $ (109) $ 1,273 $ 1,350 $ (51) $ 1,299
Net Income Per Common Share
Basic $ 6.61 $ (0.17) $ 6.44 $ 4.76 $ (0.41) $ 4.35 $ 4.72 $ (0.20) $ 4.52
Fully diluted 6.56 (0.19) 6.37 4.72 (0.43) 4.29 4.66 (0.21) 4.45
Consolidated Statement of Comprehensive Income
For the Year Ended October 31 (Canadian $ in millions) 2000 1999 1998
Net Income (under United States GAAP) $ 1,811 $ 1,273 $ 1,299
Other Comprehensive Income, net of tax:
Unrealized gain (loss) on translation of net investment
in foreign operations, net of hedging activities (a) 143 (154) 229
Unrealized holding gains (losses) arising on available for sale securities (b) 307 (426) 56
Reclassification adjustment for realized (gains) losses and write-downs
on available for sale securities recognized in net income (c) (42) 49 (56)
Total Other Comprehensive Income 408 (531) 229
Comprehensive Income $ 2,219 $ 742 $ 1,528
(a) Net of income taxes of $153 ($168 in 1999, $231 in 1998).
(b) Net of income taxes of $222 ($310 in 1999, $42 in 1998).
(c) Net of income taxes of $30 ($36 in 1999, $41 in 1998).
(1) The accumulated balances related to each component of other
comprehensive income, net of tax, are as follows:
2000 1999
Unrealized gain (loss) on translation of
net investment in foreign operations,
net of hedging activities $ 303 $ 160
Net unrealized gains (losses) on available
for sale securities (i) 83 (182)
Total Accumulated Other Comprehensive Income $ 386 $ (22)
(i) Under United States GAAP, Statement of Financial Accounting
Standards No. 115, “Accounting for Certain Investments in Debt and
Equity Securities”, we have designated as available for sale securities
all of our investment securities, other than our investment in our
investment securities accounted for using the equity method.
Available for sale securities are carried at fair value, with any un-
realized gains (losses) recognized through other comprehensive
income. Under Canadian GAAP, investment securities are carried
at amortized cost.
(2) Under United States GAAP, Emerging Issues Task Force No. 94-8,
“Accounting for Conversion of a Loan into a Debt Security in a Debt
Restructuring”, the fair value of securities received in a restructuring
as settlement of a claim for past-due interest on a loan should be
recognized in income when received. Under Canadian GAAP,
we record the securities at a nominal value when received and
recognize any gains in income only when the securities are sold.