TD Bank 2005 Annual Report Download - page 111

TD BANK FINANCIAL GROUP ANNUAL REPORT 2005 Financial Results 107
Condensed Consolidated Balance Sheet
As at October 31
(millions of Canadian dollars) 2005 2004
Canadian Adjust- U.S. Canadian Adjust- U.S.
GAAP ments GAAP GAAP ments GAAP
Assets
Cash resources and other $ 13,418 $ – $ 13,418 $ 9,038 $ 297 $ 9,335
Securities
Investmentc,g 42,321 3,898 46,219 31,387 3,917 35,304
Trading 65,775 – 65,775 66,893 216 67,109
Securities purchased under reverse repurchase agreements 26,375 – 26,375 21,888 – 21,888
Loans (net) 152,243 – 152,243 123,924 46 123,970
Trading derivatives’ market revaluationd33,651 674 34,325 33,697 1,827 35,524
Goodwilla,g 6,518 1,604 8,122 2,225 64 2,289
Other intangiblesa,g 2,124 338 2,462 2,144 33 2,177
Other assetsa,g 22,785 22 22,807 19,831 67 19,898
Total assets $ 365,210 $ 6,536 $ 371,746 $311,027 $6,467 $317,494
Liabilities
Depositsd$246,981 $ 21 $ 247,002 $206,893 $ 350 $207,243
Trading derivatives’ market revaluationd33,498 598 34,096 33,873 1,138 35,011
Other liabilitiesa,c,d,e,g,h,j 60,224 4,037 64,261 49,389 4,640 54,029
Subordinated notes, debentures and other debt 5,138 – 5,138 5,644 82 5,726
Liabilities for preferred shares and capital trust securitiesf1,795 (1,795) – 2,560 (2,560) –
Total liabilities 347,636 2,861 350,497 298,359 3,650 302,009
Non-controlling interest in subsidiariesf,g 1,708 3,149 4,857 –1,368 1,368
Shareholders’ equity
Preferred sharesf– 545 545 – 960 960
Common sharesj5,872 39 5,911 3,373 37 3,410
Contributed surplusj40–4020222
Foreign currency translation adjustmentsk(696) 696 – (265) 265 –
Retained earningsa,b,c,d,e,g,h,j 10,650 (246) 10,404 9,540 (104) 9,436
Accumulated other comprehensive income
Net unrealized gains on available for sale securitiesc–280 280 –298 298
Foreign currency translation adjustmentsk– (696) (696) – (265) (265)
Derivative instrumentsd– (54) (54) – 261 261
Minimum pension liability adjustmenta–(38) (38) –(5) (5)
Total shareholders’ equity 15,866 526 16,392 12,668 1,449 14,117
Total liabilities and shareholders’equity $ 365,210 $ 6,536 $ 371,746 $311,027 $6,467 $317,494
(a)EMPLOYEE FUTURE BENEFITS
Under Canadian GAAP, the Bank adopted the employee future
benefits standard in fiscal 2001 on a retroactive basis without
restatement. The 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 stan-
dard on a prospective basis. Consequently, differences between
U.S. and Canadian GAAP remain, as the transitional impacts will
be amortized over the expected average remaining service life of
the employee group for U.S. GAAP.
U.S. GAAP also requires an additional minimum liability to be
recorded if the accumulated benefit obligation is greater than the
fair value of plan assets. Canadian GAAP has no such require-
ment. For U.S. GAAP purposes, the Bank recognized the amounts
noted in the table below in the Consolidated Balance Sheet.
(millions of Canadian dollars) 2005 2004
Prepaid pension expense (accrued
benefit liability) $299 $180
Other intangibles 23 33
Accumulated other comprehensive income
before income taxes 57 7
Net amount recognized $379 $220
(b) SECURITIZATIONS
U.S. GAAP and current Canadian GAAP require gains on loan
securitizations to be recognized in income immediately. Under
previous Canadian GAAP, gains were recognized only when
received in cash by the Bank. In fiscal 2005, U.S. GAAP adjust-
ments for securitizations decreased other income by $4 million
beforetax.
(c) AVAILABLE FOR SALE SECURITIES
U.S. GAAP requires that investment securities be classified as
either available for sale or held to maturity,and requires available
for sale securities to be reported on the Consolidated Balance
Sheet at their estimated fair values. Unrealized gains and losses
arising from changes in fair values of available for sale securities
are reported net of income taxes in the Consolidated Statement
of Comprehensive Income. Other than temporary declines in fair
value arerecorded by transferring the unrealized loss from the
Consolidated Statement of Comprehensive Income to the
Consolidated Statement of Income. For U.S. GAAP, the Bank
accounts for the majority of investment securities as available for
sale. Under Canadian GAAP,investment securities arecarried at
cost or amortized cost, with other than temporary declines in
value recognized based upon expected net realizable values.
In addition, under U.S. GAAP certain non-cash collateral
received in securities lending transactions is recognized as an
asset, and a liability is recorded for the obligation to return the
collateral. Under Canadian GAAP, non-cash collateral received as
part of a securities lending transaction is not recognized in the
Consolidated Balance Sheet. In fiscal 2005, U.S. GAAP adjust-
ments for available for sale securities increased other income by
$21 million before tax.
In fiscal 2005, U.S. GAAP adjustments for employee future
benefits decreased non-interest expenses by $7 million before tax.