CONSOLIDATED FINANCIAL STATEMENTS
<br />Consolidated Statement of Changes in Shareholders' Equity
<br />For the year ended October 31 ($ millions)
<br />Preferred shares (Note 14)
<br />Balance at beginning of year
<br />Issued
<br />Balance at end of year
<br />Common shares and contributed surplus (Note 15)
<br />Common shares:
<br />Balance at beginning of year
<br />Issued
<br />Purchased for cancellation
<br />Balance at end of year
<br />Contributed surplus:
<br />Balance at beginning of year
<br />Stock option expense (Note 18)
<br />Balance at end of year
<br />Total
<br />Retained earnings
<br />Balance at beginning of year
<br />Net income
<br />Dividends: Preferred
<br />Common
<br />Purchase of shares
<br />Other
<br />Balance at end of year"'
<br />Accumulated other comprehensive income (loss)
<br />Balance at beginning of year as previously reported
<br />Cumulative effect of adopting new accounting policies
<br />Balance at beginning of year as restated
<br />Other comprehensive income (loss) (Note 17)
<br />Balance at end of year
<br />Total shareholders' equity at end of year
<br />Consolidated Statement of Comprehensive Income
<br />2010 2009 2008
<br />$ 3,710 $ 2,860 $ 1,635
<br />265 850 1,225
<br />3,975 3,710 2,860
<br />4,946 3,829 3,566
<br />804 1,117 266
<br />(3)
<br />-- 5,750 _ --4,946 3,829
<br />25 - -
<br />25 - -
<br />5,775 4,946 3,829
<br />19,916 18,549 17,460
<br />4,239 3,547 3,140
<br />(201) (186) (107)
<br />(2,023) (1,990) (1,896)
<br />- - (37)
<br />1 (4) (11)
<br />21,932 19,916 18,549
<br />(3,800) (3,596) (3,857)
<br />- 595'2' -
<br />(3,800) (3,001) (3,857)
<br />(251) (799) 261
<br />(4,051) (3,800) (3,596)
<br />$ 27,6_31 _ $ 24,772 $ 21,642
<br />For the year ended October 31 ($ millions) 2010 2009 2008
<br />Net income S 4,239 $ 3,547 $ 3,140
<br />Other comprehensive income (loss), net of income taxes (Note 17):
<br />Net change in unrealized foreign currency translation gains (losses) (591) (1,736) 2,368
<br />Net change in unrealized gains (losses) on available-for-sale securities 278 894 (1,588)
<br />Net change in gains (losses) on derivative instruments designated as cash flow hedges 62 43 (519)
<br />Other comprehensive income (loss) (251) (799) 261
<br />Comprehensive income S 3,988 $ 2,748 $ 3,401
<br />(1) Includes undistributable retained earnings of $28 (2009 - $26; 2008 - $25) of a foreign associated corporation which are subject to local regulatory restriction.
<br />(2) Refer to Note 1 for impact of new accounting policies adopted in 2009 related to classification and impairment of financial instruments.
<br />The accompanying notes are an integral part of these consolidated financial statements.
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