TD Bank 2005 Annual Report Download - page 110

TD BANK FINANCIAL GROUP ANNUAL REPORT 2005 Financial Results
106
Consolidated Statement of Comprehensive Income
For the years ended October 31
(millions of Canadian dollars) 2005 2004 2003
Net income based on U.S. GAAP $ 2,144 $1,881 $1,162
Other comprehensive income (loss), net of income taxes
Net change in unrealized gains and losses on available for sale securities1(14) 16 16
Reclassification to earnings in respect of available for sale securities2(4) 5 (78)
Change in unrealized foreign currency translation gains and losses3,7 (431) (135) (548)
Change in gains and losses on derivative instruments designated as cash flow hedges4(325) 141 126
Reclassification to earnings of gains and losses on cash flow hedges510 40 46
Minimum pension liability adjustment6(33) (5) 114
Comprehensive income $1,347 $1,943 $ 838
Net Income
For the years ended October 31
(millions of Canadian dollars) 200512004 2003
Net income based on Canadian GAAP $2,229 $2,232 $ 989
Employee future benefitsa7(3) (11)
Securitizationsb(4) (17) (16)
Available for sale securitiesc21 2128
Derivative instruments and hedging activitiesd(287) (475) 142
Guaranteese(22) (13) (20)
Asset retirement obligations –(6) (30)
Liabilities and equityf147 146 179
Amortization of intangible assetsg(35) – –
Restructuring costsh––(28)
Other 17 (10) –
Income taxes and net change in income taxes due to the above itemsi128 118 (56)
Non-controlling interestg(57) (93) (115)
Net income based on U.S. GAAP 2,144 1,881 1,162
Preferred dividends 55 53 64
Net income available to common shares based on U.S. GAAP $2,089 $1,828 $1,098
Average number of common shares outstanding (millions)
Basic – U.S. GAAP 691.3 654.5 649.8
–Canadian GAAP 691.3 654.5 649.8
Diluted – U.S. GAAP 696.9 659.4 653.9
–Canadian GAAP 696.9 659.4 653.9
Basic earnings per share – U.S. GAAP $3.02 $2.79 $1.69
– Canadian GAAP 3.22 3.41 1.52
Diluted earnings per share – U.S. GAAP $ 3.00 $ 2.77 $ 1.68
– Canadian GAAP 3.20 3.39 1.51
1For fiscal 2005, the effect of U.S. GAAP adjustments to the Canadian
GAAP Consolidated Statement of Income is as follows: $297 million
increase to net interest income, $400 million decrease to other income
and $110 million increase to non-interest expenses.
The accounting principles followed by the Bank including the
accounting requirements of the Superintendent of Financial
Institutions Canada conform with Canadian generally accepted
accounting principles (GAAP).
As required by the United States Securities and Exchange
Commission (SEC), the significant differences between Canadian
GAAP and United States generally accepted accounting principles
(U.S. GAAP) are described below.
1Net of income taxes (benefit) of $40 million (2004 – $31 million;
2003 – $7 million).
2Net of income taxes (benefit) of $2 million (2004 – $2 million;
2003 – $(45) million).
3Net of income taxes (benefit) of $141 million (2004 – $400 million;
2003 – $481 million).
4Net of income taxes (benefit) of $149 million (2004 – $76 million;
2003 – $72 million).
5Net of income taxes (benefit) of $5 million (2004 – $21 million;
2003 – $27 million).
6Net of income taxes (benefit) of $(17) million (2004 – $(2) million;
2003 – $72 million).
7Fiscal 2005 includes $250 million (2004 – $659 million;
2003 – $971 million) of after-tax gains arising from hedges
of the Bank’sinvestment positions in foreign operations.
RECONCILIATION OF CANADIAN AND UNITED STATES GENERALLY ACCEPTED ACCOUNTING PRINCIPLES
NOTE 27