TD Bank 2014 Annual Report Download - page 173

Download and view the complete annual report

Please find page 173 of the 2014 TD Bank annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 228

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143
  • 144
  • 145
  • 146
  • 147
  • 148
  • 149
  • 150
  • 151
  • 152
  • 153
  • 154
  • 155
  • 156
  • 157
  • 158
  • 159
  • 160
  • 161
  • 162
  • 163
  • 164
  • 165
  • 166
  • 167
  • 168
  • 169
  • 170
  • 171
  • 172
  • 173
  • 174
  • 175
  • 176
  • 177
  • 178
  • 179
  • 180
  • 181
  • 182
  • 183
  • 184
  • 185
  • 186
  • 187
  • 188
  • 189
  • 190
  • 191
  • 192
  • 193
  • 194
  • 195
  • 196
  • 197
  • 198
  • 199
  • 200
  • 201
  • 202
  • 203
  • 204
  • 205
  • 206
  • 207
  • 208
  • 209
  • 210
  • 211
  • 212
  • 213
  • 214
  • 215
  • 216
  • 217
  • 218
  • 219
  • 220
  • 221
  • 222
  • 223
  • 224
  • 225
  • 226
  • 227
  • 228

TD BANK GROUP ANNUAL REPORT 2014 FINANCIAL RESULTS 171
The following tables disclose the impact of derivatives and non-derivative
instruments designated in hedge accounting relationships and the related
hedged items, where appropriate, in the Consolidated Statement of
Income and in other comprehensive income (OCI) for the years ended
October 31.
Fair Value Hedges
(millions of Canadian dollars) For the years ended October 31
2014
Amounts Amounts Amounts excluded
recognized in recognized in from the
income on income on Hedge assessment of hedge
derivatives1 hedged items1 ineffectiveness1 effectiveness1
Fair value hedges
Interest rate contracts $ (144) $ 115 $ (29) $ 36
Other contracts2 2 (2) – –
Total income (loss) $ (142) $ 113 $ (29) $ 36
2013
Fair value hedges
Interest rate contracts $ 277 $ (248) $ 29 $ (8)
Other contracts2
13 (14) (1) –
Total income (loss) $ 290 $ (262) $ 28 $ (8)
2012
Fair value hedges
Interest rate contracts2 $ 129 $ (127) $ 2 $ (1)
Total income (loss) $ 129 $ (127) $ 2 $ (1)
1
Amounts are recorded in non-interest income.
2
Includes non-derivative instruments designated as hedging instruments in qualifying
foreign exchange fair value hedge accounting relationships (for example, foreign
denominated liabilities).
During the years ended October 31, 2014, October 31, 2013, and
October 31, 2012, the Bank did not recognize any net gain or loss
in earnings as a result of hedged firm commitments that no longer
qualified as fair value hedges.
Cash Flow and Net Investment Hedges
(millions of Canadian dollars) For the years ended October 31
2014
Amounts excluded
Amounts Amounts from the
recognized in reclassified from Hedge assessment of hedge
OCI on derivatives1 OCI into income1,2 ineffectiveness3 effectiveness3
Cash flow hedges
Interest rate contracts $ 805 $ 1,169 $ 1 $ –
Foreign exchange contracts 1,665 1,949 – –
Other contracts 305 302 – –
Total income (loss) $ 2,775 $ 3,420 $ 1 $ –
Net investment hedges
Foreign exchange contracts4 $ (1,878) $ 17 $ – $ 1
2013
Cash flow hedges
Interest rate contracts $ (197) $ 1,167 $ (3) $ –
Foreign exchange contracts 962 944 – –
Other contracts 305 287 – –
Total income (loss) $ 1,070 $ 2,398 $ (3) $ –
Net investment hedges
Foreign exchange contracts4 $ (1,001) $ (5) $ – $ –
2012
Cash flow hedges
Interest rate contracts $ 1,263 $ 1,611 $ – $ –
Foreign exchange contracts (28) (17) – –
Other contracts 108 102 – –
Total income (loss) $ 1,343 $ 1,696 $ – $ –
Net investment hedges
Foreign exchange contracts4 $ (76) $ – $ – $ 4
1
OCI is presented on a pre-tax basis.
2
Amounts are recorded in net interest income or non-interest income, as applicable.
3
Amounts are recorded in non-interest income.
4
Includes non-derivative instruments designated as hedging instruments in qualifying
hedge accounting relationships (for example, foreign denominated liabilities).