Bank of Montreal 2008 Annual Report Download - page 153

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Condensed Consolidated Statement of Income
For the Year Ended October 31 (Canadian $ in millions, except per share amounts) 2008 2007 2006
Net income, as reported under Canadian GAAP $ 1,978 $ 2,131 $ 2,663
Adjustments to arrive at United States GAAP:
Net Interest Income –Liabilities and equity (i) 91 99 99
Non-Interest Revenue –Merchant banking (j) (2) 7 (21)
–Fair value option (a) –(8) –
–Derivatives (c) –– (32)
–Reclassification from trading securities to available-for-sale securities (n) (183) ––
Non-Interest Expense –Stock-based compensation (d) (5) (17) (31)
–Software development costs (e) (1) (42) (42)
–Pension and related benefits (b) 6–4
–Goodwill and other assets (f) 555
Income taxes and net change in income taxes (g) (including adjustments due to items listed above) 58 19 40
Non-controlling interest in subsidiaries (i) (79) (79) (79)
Net income based on United States GAAP $ 1,868 $ 2,115 $ 2,606
Earnings per share: basic –Canadian GAAP net income $ 3.79 $ 4.18 $ 5.25
–United States GAAP net income 3.57 4.14 5.14
Earnings per share: diluted –Canadian GAAP net income $ 3.76 $ 4.11 $ 5.15
–United States GAAP net income 3.54 4.08 5.04
Consolidated Statement of Comprehensive Income
For the Year Ended October 31 (Canadian $ in millions) 2008 2007 2006
Total Comprehensive Income, as reported under Canadian GAAP $ 3,260 $ 1,435 $ 2,486
Adjustments to arrive at United States GAAP:
Net income adjustments, as per Condensed Consolidated Statement of Income (110) (16) (57)
Unrealized holding gains on available-for-sale securities, net of hedging activities (k) (1) –– 151
Realized gains on available-for-sale securities recognized in net income (k) (2) ––(94)
Unrealized losses on derivatives designated as cash flow hedges (c) (3) ––(71)
Net losses on derivatives designated as cash flow hedges recognized in net income (c) (4) –– (5)
Unrealized gain (loss) on translation of net foreign operations, net of hedging activities (f) (12) 95
Unrealizedgainonreclassificationfromtradingsecuritiestoavailable-for-salesecurities(n) (5) 123 ––
Pension and other employee future benefits (b) (6) (254) (486) 6
Total Comprehensive Income based on United States GAAP $ 3,007 $ 942 $ 2,421
Notes
BMO Financial Group 191st Annual Report 2008 | 149
(1) Net of income taxes of $82 million in 2006.
(2) Net of income taxes of $51 million in 2006.
(3) Net of income taxes of $38 million in 2006.
(4) Net of income taxes of $3 million in 2006.
(5) Net of income taxes of $60 million in 2008.
(6) Net of income taxes of $102 million in 2008, $279 million in 2007 and $3 million in 2006.
Condensed Consolidated Balance Sheet
As at October 31 (Canadian $ in millions) 2008 2007
Canadian Increase United States Canadian Increase United States
GAAP (Decrease) GAAP GAAP (Decrease) GAAP
Assets
Cash Resources (m) $ 21,105 $ (2,321) $ 18,784 $ 22,890 $ (1,994) $ 20,896
Securities –Trading (l,n) 66,032 (1,856) 64,176 70,773 (505) 70,268
–Available-for-sale (h,l,n) 32,115 931 33,046 26,010 2,225 28,235
–Other (j,l) 1,991 (99) 1,892 1,494 (97) 1,397
Loans and customers’ liability under acceptances,
net of the allowance for credit losses (m) 214,995 2,321 217,316 201,188 1,994 203,182
Derivative instruments (c) 65,586 – 65,586 32,585 – 32,585
Premises and equipment (e,f) 2,227 (5) 2,222 1,980 (3) 1,977
Goodwill (f) 1,635 (42) 1,593 1,140 (33) 1,107
Intangible assets (f) 204 (5) 199 124 (8) 116
Other assets (b,d,l) 10,160 7,506 17,666 8,340 7,629 15,969
Total Assets $ 416,050 $ 6,430 $ 422,480 $ 366,524 $ 9,208 $ 375,732
Liabilities and Shareholders’ Equity
Deposits (a) $ 257,670 $ – $ 257,670 $ 232,050 $ 8 $ 232,058
Derivative instruments (c) 60,048 – 60,048 33,584 – 33,584
Acceptances 9,358 – 9,358 12,389 – 12,389
Securities sold but not yet purchased 18,792 – 18,792 25,039 – 25,039
Securities lent or sold under repurchase agreements 32,492 – 32,492 31,263 – 31,263
Other liabilities (b,h,i,l,n) 14,071 8,448 22,519 12,055 10,963 23,018
Subordinated debt 4,315 – 4,315 3,446 – 3,446
Capital trust securities (i) 1,150 (1,150) – 1,150 (1,150) –
Preferred share liability (i) 250 (250) – 250 (250) –
Shareholders’ equity (b,d,e,f,g,i,j,n) 17,904 (618) 17,286 15,298 (363) 14,935
Total Liabilities and Shareholders’ Equity $ 416,050 $ 6,430 $ 422,480 $ 366,524 $ 9,208 $ 375,732