TD Bank 2003 Annual Report Download - page 32

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The Corporate segment includes non-controlling interests
in subsidiaries, certain gains on dispositions of businesses,
real estate investments, the effect of securitizations, treasury
management, general provisions for credit losses, certain
taxable equivalent adjustments, corporate level tax benefits
and residual unallocated revenues and expenses.
During fiscal 2003, the Corporate segment had an operat-
ing cash basis net income of $2 million. The most significant
factors contributing to this result were pre-tax income from
the $157 million general allowances release in the fourth
quarter 2003, interest income earned on income tax refunds
of $55 million before tax in the third quarter 2003, securi-
tization gain of $11 million after-tax in the third quarter
2003, and tax recoveries of $13 million in the third quarter
2003. This income was offset by a $39 million after-tax loss to
address a previously unhedged non-trading U.S. dollar expo-
sure arising from our U.S. dollar Visa business, a $30 million
tax adjustment in the second quarter 2003 relating to lease
write downs, as well as costs associated with net treasury
activities and net unallocated revenues, expenses and taxes.
During fiscal 2002, the Corporate segment had an operating
cash basis net loss of $47 million. The most significant factors
contributing to this result were net losses of $10 million relat-
ed to transfer pricing differences, net treasury activities, and
net unallocated revenues, expenses and taxes. The above net
losses were offset by net earnings of $27 million from dispo-
sitions of businesses. Reported net loss for the Corporate
segment was $15 million for fiscal 2002, and includes the
special gain of $32 million after-tax related to the sale of the
Bank’s mutual fund record keeping and custody business.
TD BANK FINANCIAL GROUP ANNUAL REPORT 2003 • Management’s Discussion and Analysis30
Corporate
Corporate
(millions of dollars) 2003 2002 2001
Net interest income $ (409) $(689) $ (926)
Other income 206 279 324
Total revenue (203) (410) (602)
Provision for credit losses (194) (70) (87)
Non-interest expenses excluding non-cash goodwill/intangible amortization 261 96 59
Income (loss) before provision for (benefit of) income taxes (270) (436) (574)
Provision for (benefit of) income taxes (364) (453) (665)
Non-controlling interest in net income of subsidiaries 92 64 76
Net income (loss) – operating cash basis $2 $ (47) $ 15
Special increase in general provision, net of income taxes ––(208)
Gain on sale of mutual fund record keeping and custody business, net of income taxes –32 –
Gains on sale of investment real estate, net of income taxes ––275
Restructuring costs, net of income taxes ––(138)
Income tax expense from income tax rate changes ––(75)
Net income (loss) – reported basis $2 $ (15) $ (131)