TD Bank 2006 Annual Report Download - page 114

TD BANK FINANCIAL GROUP ANNUAL REPORT 2006 Financial Results
110
Consolidated Statement of Comprehensive Income
For the years ended October 31
(millions of Canadian dollars) 2006 2005 2004
Net income based on U.S. GAAP $4,618 $2,144 $1,881
Other comprehensive income (loss), net of income taxes
Net change in unrealized gains and losses on available-for-salesecurities14(14) 16
Reclassification to earnings in respect of available-for-sale securities2–(4) 5
Change in unrealized foreign currency translation gains and losses3,7 (222) (431) (135)
Change in gains and losses on derivative instruments designated as cash flow hedges4298 (325) 141
Reclassification to earnings of gains and losses on cash flow hedges5(12) 10 40
Minimum pension liability adjustment616 (33) (5)
Comprehensive income $4,702 $1,347 $1,943
Net Income
For the years ended October 31
(millions of Canadian dollars) 200612005 2004
Net income based on Canadian GAAP $4,603 $2,229 $2,232
Employee future benefitsa(2) 7(3)
Securitizationsb–(4) (17)
Available-for-sale securitiesc26 21 2
Derivative instruments and hedging activitiesd(5) (287) (475)
Guaranteese(30) (22) (13)
Liabilities and equityf126 147 146
Amortization of intangible assetsg(60) (35) –
Asset retirement obligations ––(6)
Other (6) 17 (10)
Income taxes and net change in income taxes due to the above itemsi(5) 128 118
Non-controlling interestg(29) (57) (93)
Net income based on U.S. GAAP 4,618 2,144 1,881
Preferred dividends 59 55 53
Net income available to common shareholders based on U.S. GAAP $4,559 $2,089 $1,828
Average number of common shares outstanding (millions)
Basic – U.S. GAAP/Canadian GAAP 716.8 691.3 654.5
Diluted – U.S. GAAP/Canadian GAAP 723.0 696.9 659.4
Basic earnings per share – U.S. GAAP $ 6.36 $ 3.02 $ 2.79
–Canadian GAAP 6.39 3.22 3.41
Diluted earnings per share – U.S. GAAP $6.31 $3.00 $ 2.77
–Canadian GAAP 6.34 3.20 3.39
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 U.S. 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 $(18) million (2005 – $40 million;
2004 – $31 million).
2Net of income taxes (benefit) of nil (2005 – $2 million;
2004 – $2 million).
3Net of income taxes (benefit) of $209 million (2005 – $141 million;
2004 – $400 million).
4Net of income taxes (benefit) of $83 million (2005 – $149 million;
2004 – $76 million).
5Net of income taxes (benefit) of $(7) million (2005 – $5 million;
2004 – $21 million).
6Net of income taxes (benefit) of $7 million (2005 – $(17) million;
2004 – $(2) million).
7Fiscal 2006 includes $433 million (2005 – $250 million;
2004 – $659 million) of after-tax gains arising from hedges
of the Bank’s investment positions in foreign operations.
RECONCILIATION OF CANADIAN AND U.S. GENERALLY ACCEPTED ACCOUNTING PRINCIPLES
NOTE 29
1For 2006, the effect of U.S. GAAP adjustments to the Canadian GAAP
Consolidated Statement of Income is as follows: $202 million increase to
net interest income, $61 million decrease to other income and $126 million
increase to non-interest expenses.