TD Bank 2012 Annual Report Download - page 157

TD BANK GROUP ANNUAL REPORT 2012 FINANCIAL RESULTS 155
Deferred tax assets and liabilities are comprised of:
Deferred Tax Assets and Liabilities
(millions of Canadian dollars) October 31 October 31 November 1
2012
2011
2010
Consolidated Consolidated Consolidated
Balance Balance Balance
Sheet Sheet Sheet
Deferred tax assets
Allowance for credit losses $ 530 $ 508 $ 331
Land, buildings, equipment, and other depreciable assets 7 26 47
Deferred (income) expense 199 126 (49)
Trading loans 192 266 407
Derecognition of financial assets and liabilities 187 277 222
Goodwill 7 40 49
Employee benefits 671 660 580
Losses available for carry forward 285 118 213
Tax credits 184 80 137
Other 265 47 41
Total deferred tax assets1 $ 2,527 $ 2,148 $ 1,978
Deferred tax liabilities
Securities $ 1,457 $ 1,057 $ 1,040
Intangible assets 419 427 632
Pensions 95 42 32
Total deferred tax liabilities $ 1,971 $ 1,526 $ 1,704
Net deferred tax assets $ 556 $ 622 $ 274
Reflected on the Consolidated Balance Sheet as follows:
Deferred tax assets $ 883 $ 1,196 $ 1,045
Deferred tax liabilities 327 574 771
Net deferred tax assets $ 556 $ 622 $ 274
1
The amount of temporary differences, unused tax losses, and unused tax credits
for which no deferred tax assets is recognized in the Consolidated Balance Sheet
is nil as at October 31, 2012 (October 31, 2011 – $12 million; November 1,
2010 – $192 million).
The movement in the net deferred tax asset for the years ended
October 31, 2012 and October 31, 2011 was as follows:
Deferred Income Tax Expense (Recovery)
(millions of Canadian dollars) 2012
2011
Consolidated Other Business Consolidated Other Business
Statement of Comprehensive Combinations Statement of Comprehensive Combinations
Income Income and Other Total Income Income and Other Total
Deferred income tax expense
(recovery)
Allowance for credit losses $ (22) $ – $ – $ (22) $ (137) $ – $ (40) $ (177)
Land, buildings, equipment,
and other depreciable assets (31) – 50 19 21 – – 21
Deferred (income) expense (73) – – (73) (175) – – (175)
Trading loans 74 – – 74 141 – – 141
Derecognition of financial
assets and liabilities 4 86 – 90 (7) (48) – (55)
Goodwill 33 – – 33 – – 9 9
Employee benefits (11) – – (11) (82) 2 – (80)
Losses available for carry
forward (167) – – (167) 95 – – 95
Tax credits (104) – – (104) 57 – – 57
Other deferred tax assets (189) – (29) (218) 29 – (34) (5)
Securities 553 (153) – 400 107 (86) (4) 17
Intangible assets (8) – – (8) (206) – – (206)
Pensions 53 – – 53 10 – – 10
Total deferred income tax
expense (recovery) $ 112 $ (67) $ 21 $ 66 $ (147) $ (132) $ (69) $ (348)
Certain taxable temporary differences associated with the Bank’s
investments in subsidiaries, branches and associates, and interests
in joint ventures did not result in the recognition of deferred tax
liabilities as at October 31, 2012. The total amount of these temporary
differences was $26 billion (October 31, 2011 – $21 billion;
November 1, 2010 – $19 billion).