TD Bank 2009 Annual Report Download - page 132

TD BANK FINANCIAL GROUP ANNUAL REPORT 2009 FINANCIAL RESULTS128
CASH FLOWS AND AMOUNTS RECOGNIZED
IN THE CONSOLIDATED BALANCE SHEET
The Bank’s contributions to its pension plans and its principal non-
pension post-retirement benefit plan are as follows:
Plan Contributions
(millions of Canadian dollars) 2009 2008 2007
Principal pension plans $ 626 $96 $84
CT defined benefit pension plan –(1) 2
TD Banknorth defined benefit
retirement plan ––48
Supplemental employee retirement plans 18 11 16
Principal non-pension post-retirement
benefit plan 10 99
Total $ 654 $ 115 $ 159
Estimated Contributions
In 2010, the Bank or its subsidiaries expect to contribute $161 million to
the principal pension plans, nil to the CT defined benefit pension plan,
nil to the TD Banknorth defined benefit retirement plan, $14 million
to the Bank’s supplemental employee retirement plans and $14 million
to the principal non-pension post-retirement benefit plan. Future
contribution amounts may change upon the Bank’s review of its contri-
bution levels during the year.
Estimated Future Benefit Payments
Estimated future benefit payments under the principal pension plans
are $123 million for 2010; $124 million for 2011; $125 million for
2012; $127 million for 2013; $129 million for 2014; and $690 million
for 2015 to 2019.
Estimated future benefit payments under the principal non-pension
post-retirement benefit plan are $14 million for 2010; $15 million for
2011; $16 million for 2012; $17 million for 2013; $19 million for 2014;
and $113 million for 2015 to 2019.
The Bank recognized the following amounts in the Consolidated
Balance Sheet for the year ended October 31:
Amounts Recognized in the Consolidated Balance Sheet
(millions of Canadian dollars) 2009 2008
Other assets
Principal pension plans $ 956 $ 444
CT defined benefit pension plan 65 70
TD Banknorth defined benefit retirement plan 135 123
Prepaid pension expense 1,156 637
Other liabilities
Principal non-pension post-retirement benefit plan 366 352
Supplemental employee retirement plans 306 292
Other employee future benefits – net 183 193
Accrued benefit liability 855 837
Net amount recognized as at October 31 $ 301 $ (200)
COMMERCE RESTRUCTURING AND INTEGRATION CHARGES
As a result of the acquisition of Commerce and related restructuring
and integration initiatives, the Bank incurred $36 million in 2009
(2008 – $48 million) before-tax restructuring charges. Restructuring
charges consisted of employee severance costs, the costs of amending
certain executive employment and award agreements and the write-
down of long-lived assets due to impairment. In the Consolidated
Statement of Income, the restructuring charges are included in
restructuring costs.
During 2009, the Bank also incurred integration charges of $393 mil -
lion
(2008 – $63 million) before tax. Integration charges consisted
of costs related to resources dedicated to the integration, employee
retention costs, external professional consulting charges, marketing
costs (including customer communication and rebranding) and integra-
tion related travel costs. In the Consolidated Statement of Income,
the integration charges are included in non-interest expenses.
TD BANKNORTH RESTRUCTURING, PRIVATIZATION AND
MERGER-RELATED CHARGES
As a result of the privatization of TD Banknorth and related restructuring
initiatives undertaken within both TD Banknorth and TD Bank USA, N.A.
(TD Bank USA) during 2007, the Bank incurred a total of $67 million
before-tax restructuring charges of which $59 million related to TD
Banknorth and $8 million related to TD Bank USA. The restructuring
charges consisted primarily of employee severance costs, the costs
of amending certain executive employment and award agreements
and the write-down of long-lived assets due to impairment. In the
Consolidated Statement of Income, the restructuring charges are
included in restructuring costs.
During 2007, TD Banknorth also incurred privatization costs of
$11 million before tax, which primarily consisted of legal and investment
banking fees, and merger-related costs of $8 million in connection
with the integration of Hudson United Bancorp (Hudson) and Inter-
change with TD Banknorth. In the Consolidated Statement of Income,
the privatization and merger-related charges are included in other
non-interest expenses.
As at October 31, 2009, the total unutilized balance of restructuring
costs of $20 million (2008 – $29 million; 2007 – $29 million) shown
in the following table is included in other liabilities in the Consolidated
Balance Sheet:
RESTRUCTURING COSTS
NOTE 26
Restructuring Costs
(millions of Canadian dollars) 2009 2008 2007
Human Real Tech-
resources estate nology Other Total Total Total
Balance at beginning of year $21 $ 5 $ 1 $ 2 $ 29 $29 $27
Restructuring costs arising during the year:
U.S. Personal and Commercial Banking –36 – –3648 67
Amount utilized during the year:
Wholesale Banking 5–––5710
U.S. Personal and Commercial Banking 16 18 1 2 37 41 55
Foreign exchange and other adjustments – (3) – – (3) ––
Balance at end of year $– $20 $– $– $20 $29 $29