TD Bank 2003 Annual Report Download - page 76

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TD BANK FINANCIAL GROUP ANNUAL REPORT 2003 • Financial Results74
(millions of dollars) 2003 2002 2001
Provision for income taxes – Consolidated Statement of Operations1
Current income taxes $392 $ 571 $ 931
Future income taxes (70) (1,016) (1,137)
322 (445) (206)
Provision for income taxes – Consolidated Statement of Changes in
Shareholders’ Equity
Current income taxes 481 46 (217)
Future income taxes (4) (1) (74)
477 45 (291)
Total provision for (benefit of) income taxes $799 $ (400) $ (497)
Current income taxes
Federal $582 $ 405 $ 370
Provincial 229 160 140
Foreign 62 52 204
873 617 714
Future income taxes2
Federal (56) (591) (785)
Provincial (16) (184) (343)
Foreign (2) (242) (83)
(74) (1,017) (1,211)
$799 $ (400) $ (497)
1Includes the tax effect of goodwill amortization of $9 million in fiscal 2001.
2Includes a net future income tax benefit of $3 million (2002 – $22 million;
2001 – $215 million) related to federal and provincial tax rate reductions.
The assumed health care cost increase rate for the next year
used to measure the expected cost of benefits covered for the
non-pension post-retirement benefit plans is 6.25%. The rate
is assumed to decrease gradually to 4.5% over seven years and
remain at that level thereafter. For 2003, the effect of one
percentage point increase or decrease in the assumed health care
cost trend rate on the benefit expense is a $4 million increase and
a $3 million decrease, respectively, and on the benefit obligation,
a $36 million increase and a $29 million decrease, respectively.
(millions of dollars) 2003 2002 2001
Change in projected benefit obligation
Projected benefit obligation at beginning of period $220 $213 $183
Service cost – benefits earned 887
Interest cost on projected benefit obligation 16 15 13
Benefits paid (5) (4) (7)
Change in actuarial assumptions 20 (9) 20
Actuarial (gains) losses 9(3) –
Other –– (3)
Projected benefit obligation at end of period 268 220 213
Unrecognized net (gain) loss from past experience, different from
that assumed, and effects of changes in assumptions 34 517
Employer’s contributions in fourth quarter 1––
Accrued benefit liability $233 $215 $196
Annual expense
Net non-pension post-retirement benefit expense includes the
following components:
Service cost – benefits earned $8 $8 $7
Interest cost on projected benefit obligation 16 15 13
Non-pension post-retirement benefit expense $ 24 $23 $20
Actuarial assumptions at end of period
Weighted average discount rate for projected benefit obligation 6.75% 7.00% 6.75%
Weighted average rate of compensation increase 3.50 3.50 3.50
NOTE 15 Provision for (benefit of) income taxes