TD Bank 2001 Annual Report Download - page 74

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72
FINANCIAL RESULTS
Condensed consolidated balance sheet
(millions of dollars) 2001)2000
Canadian U.S. Canadian U.S.
GAAP Adjustments GAAP GAAP Adjustments GAAP
Assets
Cash resources $ 5,945 $ – $ 5,945 $ 4,187 $ – $ 4,187
Securities purchased under
resale agreements 20,205 – 20,205 13,974 – 13,974
Securities
Investment 31,010 1,038 32,048 27,090 796 27,886
Trading 66,184 – 66,184 58,297 – 58,297
Loans 128,795 7,442 136,237 120,721 200 120,921
Derivatives’ market revaluation 21,435 4,105 25,540 14,258 – 14,258
Goodwill and intangible
assets from business
combinations 6,616 64 6,680 7,835 71 7,906
Other assets 7,648 50 7,698 18,456 – 18,456
Total assets $ 287,838 $ 12,699 $ 300,537 $ 264,818 $ 1,067 $ 265,885
Liabilities
Deposits $ 193,914 $ – $ 193,914 $ 185,808 $ – $ 185,808
Derivatives’ market revaluation 21,770 3,867 25,637 12,802 – 12,802
Other liabilities 52,586 8,380 60,966 47,319 623 47,942
Subordinated notes and
debentures 4,892 – 4,892 4,883 – 4,883
Non-controlling interest in
subsidiaries 1,272 350 1,622 1,656 350 2,006
Total liabilities 274,434 12,597 287,031 252,468 973 253,441
Shareholders’ equity
Preferred shares 1,492 (350) 1,142 1,251 (350) 901
Common shares 2,259 – 2,259 2,060 – 2,060
Retained earnings 9,653 (260) 9,393 9,039 (287) 8,752
Accumulated other
comprehensive income
Net unrealized gains on
available for sale securities – 599 599 – 496 496
Foreign currency translation
adjustments – 406 406 – 235 235
Derivative instruments – (293) (293) –––
Total shareholders’ equity 13,404 102 13,506 12,350 94 12,444
Total liabilities and shareholders’
equity $ 287,838 $ 12,699 $ 300,537 $ 264,818 $ 1,067 $ 265,885
Stock-based compensation
During 1997, the Bank’s employee stock option plan administration
was modified to allow option holders to elect to receive cash for
the options equal to their intrinsic value, being the difference
between the option exercise price and the current market value of
the shares. In accounting for stock options with this feature, U.S.
GAAP requires expensing the annual change in the intrinsic value
of the stock options. For options that have not fully vested, the
change in intrinsic value is amortized over the remaining vesting
period. Under Canadian GAAP, no expenses are recorded and
cash payments to option holders are charged to retained earnings
on a net of tax basis.
Employee future benefits
Under Canadian GAAP, the Bank adopted the new employee
future benefits standard in fiscal 2001 on a retroactive basis
without restatement. The new Canadian standard requires the
accrual of employee future benefits. Previous Canadian GAAP
permitted non-pension benefits to be expensed as paid. U.S.
GAAP similarly requires the accrual of employee future benefits.
For purposes of U.S. GAAP, the Bank adopted the employee
future benefits standard on a prospective basis. Consequently,
differences between U.S. and Canadian GAAP continue to
remain, as the transitional impacts will be amortized over the
expected average remaining service life of the employee group.