TD Bank 2003 Annual Report Download - page 64

TD BANK FINANCIAL GROUP ANNUAL REPORT 2003 • Financial Results62
Securities maturity schedule at year end
(millions of dollars) Remaining term to maturity
Within 1 to 3 3 to 5 5 to 10 Over 10 No specific 2003 2002
1 year years years years years maturity Total Total
Investment securities
Government and government -
insured securities
Canada $ 2,610 $ 211 $ 85 $ 45 $ 6 $ – $ 2,957 $ 4,637
Mortgage-backed securities 33 9,771 1,120 – – – 10,924 8,118
Total Canada 2,643 9,982 1,205 45 6 – 13,881 12,755
Provinces 16 68 36 18 4 – 142 231
Total 2,659 10,050 1,241 63 10 – 14,023 12,986
Other debt securities
Canadian issuers 226 151 126 68 53 – 624 326
U.S. federal government 1,836 65 25 23 2 – 1,951 2,853
Other foreign governments 1,293 1,850 200 1 – – 3,344 4,257
Other issuers 676 731 145 400 19 – 1,971 3,912
Total 4,031 2,797 496 492 74 – 7,890 11,348
Equity securities
Preferred shares 187 272 138 66 – 464 1,127 1,491
Common shares – – – – – 1,735 1,735 2,977
Total 187 272 138 66 – 2,199 2,862 4,468
Total investment securities 6,877 13,119 1,875 621 84 2,199 24,775 28,802
Trading securities1
Government and government -
insured securities
Canada 846 957 1,237 544 557 – 4,141 6,419
Provinces 478 371 554 726 587 – 2,716 2,860
Total 1,324 1,328 1,791 1,270 1,144 – 6,857 9,279
Other debt securities
Canadian issuers 63 229 256 673 451 – 1,672 1,928
U.S. federal government 203 76 171 232 37 – 719 1,644
Other foreign governments 344 755 384 775 1,126 – 3,384 2,848
Other issuers 2,941 4,209 5,517 6,187 3,634 – 22,488 23,154
Total 3,551 5,269 6,328 7,867 5,248 – 28,263 29,574
Equity securities
Preferred shares – – 7 – 604 135 746 962
Common shares – – – – – 19,024 19,024 13,580
Total – – 7 – 604 19,159 19,770 14,542
Total trading securities 4,875 6,597 8,126 9,137 6,996 19,159 54,890 53,395
Total securities2$11,752 $19,716 $10,001 $9,758 $7,080 $21,358 $79,665 $82,197
NOTE 2Securities
(q) Earnings per share
The Bank uses the treasury stock method to calculate diluted
earnings per share. The treasury stock method determines the
number of additional common shares by assuming that the
outstanding stock options, whose exercise price is less than
the average market price of the Bank’s common stock during
the period, are exercised and then reduced by the number of
common shares assumed to be repurchased with the exercise
proceeds. Basic earnings per share is determined by dividing
net income applicable to common shares by the average number
of common shares outstanding for the period. Diluted earnings
per share is determined using the same method as basic earnings
per share except that the weighted average number of common
shares outstanding includes the potential dilutive effect of stock
options granted by the Bank as determined under the treasury
stock method. Such potential dilution is not recognized in a
loss period.
(r) Restructuring costs
On April 1, 2003, the Bank prospectively adopted new guidance
on the accounting for severance and termination benefits and the
accounting for costs associated with exit and disposal activities
(including costs incurred in a restructuring). The new guidance
generally require recognition of costs related to severance, termi-
nation and exit and disposal activities in the period when they
are incurred rather than at the date of commitment to an exit
or disposal plan.
(s) Insurance
Earned premiums, net of fees, paid claims and changes in policy
liabilities are included in other income.
(t) Comparative figures
Certain comparative figures have been reclassified to conform
with the presentation adopted in 2003.
1During fiscal 2003, a portfolio with a carrying value of approximately
$2 billion was transferred from investment to trading securities along with
the related hedges resulting in an immaterial net income effect (2002 – nil).
2Includes loan substitutes in the amount of $3 million (2002 – $5 million).