TD Bank 2014 Annual Report Download - page 201

TD BANK GROUP ANNUAL REPORT 2014 FINANCIAL RESULTS 199
EARNINGS PER SHARE
NOTE 28
Basic earnings per share is calculated by dividing net income attribut-
able to common shareholders by the weighted-average number of
common shares outstanding for the period.
Diluted earnings per share is calculated using the same method as
basic earnings per share, except that certain adjustments are made to
net income attributable to common shareholders and the weighted-
average number of shares outstanding for the effects of all dilutive
potential common shares that are assumed to be issued by the Bank.
The following table presents the Bank’s basic and diluted earnings per
share for the years ended October 31, and reflects the impact of the
stock dividend, as discussed in Note 21, on the Bank’s basic and
diluted earnings per share, as if it was retrospectively applied to all
periods presented.
Basic and Diluted Earnings Per Share
(millions of Canadian dollars, except as noted) For the years ended October 31
2014 2013 2012
Basic earnings per share
Net income attributable to common shareholders $ 7,633 $ 6,350 $ 6,160
Weighted-average number of common shares outstanding (millions) 1,839.1 1,837.9 1,813.2
Basic earnings per share (dollars) 4.15 3.46 3.40
Diluted earnings per share
Net income attributable to common shareholders 7,633 6,350 6,160
Effect of dilutive securities
Capital Trust II Securities – Series 2012-1 – 3 17
Net income available to common shareholders including impact of dilutive securities $ 7,633 $ 6,353 $ 6,177
Weighted-average number of common shares outstanding (millions) 1,839.1 1,837.9 1,813.2
Effect of dilutive securities
Stock options potentially exercisable (millions)1 6.2 5.7 6.5
TD Capital Trust II Securities – Series 2012-1 (millions) – 1.5 10.0
Weighted-average number of common shares outstanding – diluted (millions) 1,845.3 1,845.1 1,829.7
Diluted earnings per share (dollars)1 $ 4.14 $ 3.44 $ 3.38
1
For the years ended October 31, 2014, October 31, 2013, and October 31, 2012,
the computation of diluted earnings per share did not exclude any weighted-
average options where the option price was greater than the average market price
of the Bank’s common shares.
PROVISIONS, CONTINGENT LIABILITIES, COMMITMENTS, GUARANTEES, PLEDGED ASSETS, AND COLLATERAL
NOTE 29
PROVISIONS
The following table summarizes the Bank’s provisions as at October 31.
Provisions
(millions of Canadian dollars) Asset
Retirement
Litigation Restructuring Obligations Other Total
Balance as of November 1, 2012 $ 286 $ 4 $ 66 $ 89 $ 445
Additions 251 129 7 102 489
Amounts used (279) (28) – (105) (412)
Release of unused amounts (23) – (4) (22) (49)
Foreign currency translation adjustments and other 9 – – 2 11
Balance as of October 31, 2013, before allowance for
credit losses for off-balance sheet instruments 244 105 69 66 484
Add: allowance for credit losses for off-balance sheet instruments1 212
Balance as of October 31, 2013 696
Additions 76 40 – 132 248
Amounts used (146) (79) – (99) (324)
Release of unused amounts (20) (11) (1) (31) (63)
Foreign currency translation adjustments and other 14 – – (2) 12
Balance as of October 31, 2014, before allowance for
credit losses for off-balance sheet instruments $ 168 $ 55 $ 68 $ 66 $ 357
Add: allowance for credit losses for off-balance sheet instruments1 274
Balance as of October 31, 2014 $ 631
1
Refer to Note 8, Loans, Impaired Loans, and Allowance for Credit Losses for
further details.