TD Bank 2009 Annual Report Download - page 48

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TD BANK FINANCIAL GROUP ANNUAL REPORT 2009 MANAGEMENT’S DISCUSSION AND ANALYSIS44
The Corporate segment includes effects of asset
securitization programs, treasury management,
general provisions for credit losses, the elimination
of taxable equivalent and other inter-company
adjustments, the impact of tax items at a corporate
level, and residual unallocated revenue and expenses.
Corporate segment’s reported net loss for the year was $1,719 million,
compared with a reported net loss of $147 million in 2008. The
adjusted net loss for the year was $399 million, compared with an
adjusted net loss of $251 million last year. The year-over-year change
in the adjusted net loss was primarily attributable to lower tax benefits
reported this year, losses associated with retail hedging and corporate
financing activities, and higher unallocated corporate expenses that
were partially offset by a decrease in net securitization losses.
The difference between the reported and adjusted net loss for the
Corporate segment was due to items of note as outlined below. These
items are described further in the “Financial Results Overview” section
within the MD&A.
(millions of Canadian dollars, except as noted) 2009 2008 2007
Net loss – reported $ (1,719) $ (147) $ (162)
Adjustments for items of note, net of income taxes
Amortization of intangibles 492 404 353
Reversal of Enron litigation reserve –(323) –
Decrease (increase) in fair value of derivatives hedging the reclassified
available-for-sale debt securities portfolio 450 (118) –
Gain relating to restructuring of Visa –– (135)
TD Banknorth restructuring, privatization and merger-related charges ––4
Decrease (increase) in fair value of credit default swaps hedging the corporate loan book,
net of provision for credit losses 126 (107) (30)
Other tax items –20 –
Provision for insurance claims –20 –
General allowance increase (release) in Canadian Personal and Commercial Banking
(excluding VFC) and Wholesale Banking 178 – (39)
Settlement of TD Banknorth shareholder litigation 39 ––
FDIC special assessment charge 35 ––
Total adjustments for items of note 1,320 (104) 153
Net loss – adjusted $ (399) $ (251) $ (9)
Decomposition of items included in net loss – adjusted
Net securitization gain $ (10) $ (69) $ 5
Unallocated Corporate expenses (315) (268) (189)
Other (74) 86 175
Net loss – adjusted $ (399) $ (251) $ (9)
CORPORATE
TABLE 20
Corporate segment’s mandate is to provide centralized advice and
counsel to our key businesses and to those who serve our global
customers directly. This includes support from a wide range of func-
tional groups, as well as the design, development, and implementation
of processes, systems, and technologies to ensure that the Bank’s key
businesses operate efficiently, reliably, and in compliance with all appli-
cable regulations.
Ensuring that the Bank stays abreast of emerging trends and devel-
opments is vital to maintaining stakeholders’ confidence in the Bank
and to address the dynamic complexities and challenges from changing
demands and expectations of our customers, shareholders and
employees, governments, regulators, and the community at large.
CORPORATE MANAGEMENT
The corporate management function of the Bank comprises audit,
legal and compliance, corporate and public affairs, economics, enter-
prise technology solutions, finance, treasury and balance sheet
management, human resources, marketing, office of the ombudsman,
enterprise real estate management, risk management, global physical
security, strategic sourcing, global strategy, enterprise project manage-
ment, corporate environment initiatives, and corporate development.
An enterprise Direct Channels and Distribution Strategy group has
been established within Corporate Operations that is responsible for
the online, phone, and ABM/ATM channels, delivering a best in class
experience across TD’s North American businesses. The vision of the
Direct Channels group is to create an even more integrated, seamless,
effortless, and legendary customer and client experience for TD Bank,
America’s Most Convenient Bank, TD Canada Trust, TD Wealth
Management, and TD Insurance across all channels.
BUSINESS SEGMENT ANALYSIS
Corporate