Bank of Montreal 2007 Annual Report Download - page 98

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Consolidated Financial Statements
Consolidated Statement of Comprehensive Income
Consolidated Statement of Changes in Shareholders’ Equity
For the Year Ended October 31 (Canadian $ in millions, except as noted) 2007 2006 2005
Restated
Preferred Shares (Note 21) (see Note 22)
Balance at beginning of year $ 596 $ 596 $ 596
Issued during the year 600
––
Balance at End of Year 1,196 596 596
Number of Shares
2007 2006 2005
Common Shares (Note 21)
Balance at beginning of year 500,726,079 500,219,068 500,896,857 4,231 4,022 3,857
Issued under the Shareholder Dividend
Reinvestment and Share Purchase Plan (Note 21) 1,626,374 1,378,328 1,258,463 113 89 71
Issued under the Stock Option Plan (Note 22) 3,774,644 5,014,557 4,736,826 132 169 146
Issued on the exchange of shares of a subsidiary corporation (Note 21) 57,205 33,526 284,722 1
–
2
Repurchased for cancellation (Note 21) (7,621,600) (5,919,400) (6,957,800) (66) (49) (54)
Balance at End of Year 498,562,702 500,726,079 500,219,068 4,411 4,231 4,022
Contributed Surplus
Balance at beginning of year 49 35 22
Stock option expense (Note 22) 914 13
Balance at End of Year 58 49 35
Retained Earnings
Balance at beginning of year 10,974 9,801 8,738
Cumulative impact of adopting new accounting requirements for financial instruments (net of income taxes of $39) (Note 1)
(71)
––
Cumulative impact of adopting new accounting requirements for Variable Interest Entities (net of income taxes) (Note 8)
––
(42)
Net income 2,131 2,663 2,396
Dividends –Preferred shares (Note 21) (43) (30) (30)
–Common shares (Note 21) (1,353) (1,133) (925)
Common shares repurchased for cancellation (Note 21) (458) (327) (336)
Share issue expense (14)
––
Balance at End of Year 11,166 10,974 9,801
Accumulated Other Comprehensive Income on Available-for-Sale Securities
Balance at beginning of year
–––
Impact of remeasuring available-for-sale securities to market value on November 1, 2006 (net of income taxes of $1)
3
––
Unrealized gains on available-for-sale securities arising during the year (net of income taxes of $6) 15
––
Reclassification to earnings of realized losses in the year (net of income taxes of $12) 17
––
Balance at End of Year 35
––
Accumulated Other Comprehensive Loss on Cash Flow Hedges
Balance at beginning of year
–––
Impact of adopting new cash flow hedge accounting rules on November 1, 2006 (net of income taxes of $28)
(51)
––
Losses on cash flow hedges arising during the year (net of income taxes of $64) (128)
––
Reclassification to earnings of losses on cash flow hedges (net of income taxes of $6) 13
––
Balance at End of Year (166)
––
Accumulated Other Comprehensive Loss on Translation of Net Foreign Operations
Balance at beginning of year (789) (612) (497)
Unrealized loss on translation of net foreign operations (1,697) (472) (311)
Impact of hedging unrealized loss on translation of net foreign operations (net of income taxes of $575, $156 and $101)
1,084 295 196
Balance at End of Year (1,402) (789) (612)
Total Accumulated Other Comprehensive Loss (1,533) (789) (612)
Total Shareholders’ Equity $ 15,298 $ 15,061 $ 13,842
The accompanying notes to consolidated financial statements are an integral part of these statements.
Certain comparative figures have been reclassified to conform with the current year’s presentation.
For the Year Ended October 31 (Canadian $ in millions) 2007 2006 2005
Net income $ 2,131 $ 2,663 $ 2,396
Other Comprehensive Income
Net change in unrealized gains on available-for-sale securities 32
––
Net change in unrealized losses on cash flow hedges (115)
––
Net loss on translation of net foreign operations (613) (177) (115)
Total Comprehensive Income $ 1,435 $ 2,486 $ 2,281
Consolidated Financial Statements
94 BMO Financial Group 190th Annual Report 2007