Document_and_Entity_Informatio
Document and Entity Information | 12 Months Ended |
Dec. 31, 2014 | |
Document and Entity Information | |
Entity Registrant Name | TRANSCANADA CORP |
Entity Central Index Key | 1232384 |
Document Type | 40-F |
Document Period End Date | 31-Dec-14 |
Amendment Flag | FALSE |
Current Fiscal Year End Date | -19 |
Entity Voluntary Filers | No |
Entity Current Reporting Status | Yes |
Entity Filer Category | Accelerated Filer |
Entity Common Stock, Shares Outstanding | 708,563,076 |
Document Fiscal Year Focus | 2014 |
Document Fiscal Period Focus | FY |
CONSOLIDATED_STATEMENT_OF_INCO
CONSOLIDATED STATEMENT OF INCOME (CAD) | 12 Months Ended | ||
In Millions, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Revenues | |||
Natural Gas Pipelines | 4,913 | 4,497 | 4,264 |
Liquids Pipelines | 1,547 | 1,124 | 1,039 |
Energy | 3,725 | 3,176 | 2,704 |
Total Revenues | 10,185 | 8,797 | 8,007 |
Income from Equity Investments (Note 8) | 522 | 597 | 257 |
Operating and Other Expenses | |||
Plant operating costs and other | 2,973 | 2,674 | 2,577 |
Commodity purchases resold | 1,836 | 1,317 | 1,049 |
Property taxes | 473 | 445 | 434 |
Depreciation and amortization | 1,611 | 1,485 | 1,375 |
Total Operating and Other Expenses | 6,893 | 5,921 | 5,435 |
Gain on Sale of Assets (Note 25) | 117 | 0 | 0 |
Financial Charges/(Income) | |||
Interest expense (Note 15) | 1,198 | 985 | 976 |
Interest income and other | -91 | -34 | -85 |
Total Financial Charges/(Income) | 1,107 | 951 | 891 |
Income before Income Taxes | 2,824 | 2,522 | 1,938 |
Income Tax Expense (Note 16) | |||
Current | 145 | 43 | 181 |
Deferred | 686 | 568 | 285 |
Total Income Tax Expense/(Recovery) | 831 | 611 | 466 |
Net Income | 1,993 | 1,911 | 1,472 |
Net Income Attributable to Non-Controlling Interests (Note 18) | 153 | 125 | 118 |
Net Income Attributable to Controlling Interests | 1,840 | 1,786 | 1,354 |
Preferred Share Dividends (Note 20) | 97 | 74 | 55 |
Net Income Attributable to Common Shares | 1,743 | 1,712 | 1,299 |
Net Income per Common Share (Note 19) | |||
Basic and Diluted (in dollars per share) | 2.46 | 2.42 | 1.84 |
Dividends Declared per Common Share (in dollars per share) | 1.92 | 1.84 | 1.76 |
Weighted Average Number of Common Shares | |||
Basic (in shares) | 708 | 707 | 705 |
Diluted (in shares) | 710 | 708 | 706 |
CONSOLIDATED_STATEMENT_OF_COMP
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (CAD) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Statement of Comprehensive Income [Abstract] | |||
Net Income | 1,993 | 1,911 | 1,472 |
Other Comprehensive Income/(Loss), Net of Income Taxes | |||
Foreign currency translation gains and losses on net investments in foreign operations | 517 | 383 | -129 |
Change in fair value of net investment hedges | -276 | -239 | 44 |
Change in fair value of cash flow hedges | -69 | 71 | 48 |
Reclassification to Net Income of gains and losses on cash flow hedges | -55 | 41 | 138 |
Unrealized actuarial gains and losses on pension and other post-retirement benefit plans | -102 | 67 | -73 |
Reclassification to Net Income of actuarial gains and losses and prior service costs on pension and other post-retirement benefit plans | 18 | 23 | 22 |
Other Comprehensive Income/(Loss) on equity investments | -204 | 234 | -70 |
Other Comprehensive Income/(Loss) (Note 21) | -171 | 580 | -20 |
Comprehensive Income | 1,822 | 2,491 | 1,452 |
Comprehensive Income Attributable to Non-Controlling Interests | 283 | 191 | 97 |
Comprehensive Income Attributable to Controlling Interests | 1,539 | 2,300 | 1,355 |
Preferred Share Dividends | 97 | 74 | 55 |
Comprehensive Income Attributable to Common Shares | 1,442 | 2,226 | 1,300 |
CONSOLIDATED_STATEMENT_OF_CASH
CONSOLIDATED STATEMENT OF CASH FLOWS (CAD) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Cash Generated from Operations | |||
Net Income | 1,993 | 1,911 | 1,472 |
Depreciation and amortization | 1,611 | 1,485 | 1,375 |
Deferred income taxes (Note 16) | 686 | 568 | 285 |
Income from equity investments (Note 8) | -522 | -597 | -257 |
Distributed earnings received from equity investments (Note 8) | 579 | 605 | 376 |
Employee post-retirement benefits expense, net of funding (Note 22) | 37 | 50 | 9 |
Gain on sale of assets (Note 25) | -117 | 0 | 0 |
Equity AFUDC (Note 9) | -95 | -19 | -15 |
Unrealized losses/(gains) on financial instruments | 74 | -35 | 22 |
Other | 22 | 32 | 17 |
(Increase)/decrease in operating working capital (Note 24) | -189 | -326 | 287 |
Net cash provided by operations | 4,079 | 3,674 | 3,571 |
Investing Activities | |||
Capital expenditures (Note 4) | -3,550 | -4,264 | -2,595 |
Capital projects under development (Note 4) | -807 | -488 | -3 |
Equity investments | -256 | -163 | -652 |
Acquisitions, net of cash acquired (Note 25) | -241 | -216 | -214 |
Proceeds from sale of assets, net of transaction costs (Note 25) | 196 | 0 | 0 |
Deferred amounts and other | 514 | 11 | 208 |
Net cash used in investing activities | -4,144 | -5,120 | -3,256 |
Financing Activities | |||
Dividends on common shares (Note 19) | -1,345 | -1,285 | -1,226 |
Dividends on preferred shares (Note 20) | -94 | -71 | -55 |
Distributions paid to non-controlling interests | -178 | -166 | -135 |
Notes payable issued/(repaid), net | 544 | -492 | 449 |
Long-term debt issued, net of issue costs | 1,403 | 4,253 | 1,491 |
Repayment of long-term debt | -1,069 | -1,286 | -980 |
Common shares issued | 47 | 72 | 53 |
Preferred shares issued, net of issue costs | 440 | 585 | 0 |
Partnership units of subsidiary issued, net of issue costs | 79 | 384 | 0 |
Preferred shares of subsidiary redeemed (Note 18) | -200 | -200 | 0 |
Net cash (used in)/provided by financing activities | -373 | 1,794 | -403 |
Effect of Foreign Exchange Rate Changes on Cash and Cash Equivalents | 0 | 28 | -15 |
(Decrease)/Increase in Cash and Cash Equivalents | -438 | 376 | -103 |
Cash and Cash Equivalents, Beginning of year | 927 | 551 | 654 |
Cash and Cash Equivalents, End of year | 489 | 927 | 551 |
CONSOLIDATED_BALANCE_SHEET
CONSOLIDATED BALANCE SHEET (CAD) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Current Assets | ||
Cash and cash equivalents | 489 | 927 |
Accounts receivable | 1,313 | 1,122 |
Inventories | 292 | 251 |
Other (Note 5) | 1,446 | 847 |
Total Current Assets | 3,540 | 3,147 |
Plant, Property and Equipment (Note 7) | 41,774 | 37,606 |
Equity Investments (Note 8) | 5,598 | 5,759 |
Regulatory Assets (Note 9) | 1,297 | 1,735 |
Goodwill (Note 10) | 4,034 | 3,696 |
Intangible and Other Assets (Note 11) | 2,704 | 1,955 |
Total Assets | 58,947 | 53,898 |
Current Liabilities | ||
Notes payable (Note 12) | 2,467 | 1,842 |
Accounts payable and other (Note 13) | 2,896 | 2,155 |
Accrued interest | 424 | 388 |
Current portion of long-term debt (Note 15) | 1,797 | 973 |
Total Current Liabilities | 7,584 | 5,358 |
Regulatory Liabilities (Note 9) | 263 | 229 |
Other Long-Term Liabilities (Note 14) | 1,052 | 656 |
Deferred Income Tax Liabilities (Note 16) | 5,275 | 4,564 |
Long-Term Debt (Note 15) | 22,960 | 21,892 |
Junior Subordinated Notes (Note 17) | 1,160 | 1,063 |
Total Liabilities | 38,294 | 33,762 |
EQUITY | ||
Common shares, no par value; Issued and outstanding: December 31, 2014 - 709 million shares; December 31, 2013 - 707 million shares | 12,202 | 12,149 |
Preferred shares (Note 20) | 2,255 | 1,813 |
Additional paid-in capital | 370 | 401 |
Retained earnings | 5,478 | 5,096 |
Accumulated other comprehensive loss (Note 21) | -1,235 | -934 |
Controlling interests | 19,070 | 18,525 |
Non-controlling interests (Note 18) | 1,583 | 1,611 |
Total Equity | 20,653 | 20,136 |
Total Liabilities and Equity | 58,947 | 53,898 |
CONSOLIDATED_BALANCE_SHEET_Par
CONSOLIDATED BALANCE SHEET (Parenthetical) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Statement of Financial Position [Abstract] | ||
Common shares issued (in shares) | 709 | 707 |
Common shares outstanding (in shares) | 709 | 707 |
CONSOLIDATED_STATEMENT_OF_EQUI
CONSOLIDATED STATEMENT OF EQUITY (CAD) | Total | Equity Attributable to Controlling Interests | Common Shares | Preferred Shares | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Loss | Equity Attributable to Non-Controlling Interests |
In Millions, unless otherwise specified | ||||||||
Balance at beginning of year at Dec. 31, 2011 | 12,011 | 1,224 | 380 | 4,628 | -1,449 | 1,465 | ||
Increase (decrease) in equity | ||||||||
Shares issued on exercise of stock options (Note 19) | 58 | |||||||
Shares issued under public offering, net of issue costs | 0 | |||||||
Issuance of stock options, net of exercises | -1 | |||||||
Dilution impact from TC PipeLines, LP units issued (Note 25) | 0 | 0 | ||||||
Redemption of subsidiary's preferred shares | 0 | 0 | ||||||
Impact of asset drop downs to TC Pipelines, LP (Note 25) | 0 | |||||||
Net income attributable to controlling interests | 1,354 | 1,354 | ||||||
Common share dividends | -1,240 | |||||||
Preferred share dividends | -55 | |||||||
Other comprehensive (loss)/income | -20 | 1 | ||||||
Equity Attributable to Non-Controlling Interests | ||||||||
TC PipeLines, LP | 91 | |||||||
Preferred share dividends of TCPL | 22 | |||||||
Portland | 118 | 5 | ||||||
Other comprehensive income/(loss) attributable to non-controlling interests | -21 | |||||||
Issuance of TC PipeLines, LP units | ||||||||
Proceeds, net of issue costs | 0 | 0 | ||||||
Decrease in TransCanada's ownership of TC PipeLines, LP | 0 | |||||||
Distributions declared to non-controlling interests | -135 | |||||||
Redemption of subsidiary's preferred shares | 0 | 0 | ||||||
Foreign exchange and other | -2 | |||||||
Balance at end of year at Dec. 31, 2012 | 18,336 | 16,911 | 12,069 | 1,224 | 379 | 4,687 | -1,448 | 1,425 |
Increase (decrease) in equity | ||||||||
Shares issued on exercise of stock options (Note 19) | 80 | |||||||
Shares issued under public offering, net of issue costs | 589 | |||||||
Issuance of stock options, net of exercises | -2 | |||||||
Dilution impact from TC PipeLines, LP units issued (Note 25) | 29 | 384 | ||||||
Redemption of subsidiary's preferred shares | -5 | -195 | ||||||
Impact of asset drop downs to TC Pipelines, LP (Note 25) | 0 | |||||||
Net income attributable to controlling interests | 1,786 | 1,786 | ||||||
Common share dividends | -1,301 | |||||||
Preferred share dividends | -76 | |||||||
Other comprehensive (loss)/income | 580 | 514 | ||||||
Equity Attributable to Non-Controlling Interests | ||||||||
TC PipeLines, LP | 93 | |||||||
Preferred share dividends of TCPL | 20 | |||||||
Portland | 125 | 12 | ||||||
Other comprehensive income/(loss) attributable to non-controlling interests | 66 | |||||||
Issuance of TC PipeLines, LP units | ||||||||
Proceeds, net of issue costs | 29 | 384 | ||||||
Decrease in TransCanada's ownership of TC PipeLines, LP | -47 | |||||||
Distributions declared to non-controlling interests | -166 | |||||||
Redemption of subsidiary's preferred shares | -5 | -195 | ||||||
Foreign exchange and other | 19 | |||||||
Balance at end of year at Dec. 31, 2013 | 20,136 | 18,525 | 12,149 | 1,813 | 401 | 5,096 | -934 | 1,611 |
Increase (decrease) in equity | ||||||||
Shares issued on exercise of stock options (Note 19) | 53 | |||||||
Shares issued under public offering, net of issue costs | 442 | |||||||
Issuance of stock options, net of exercises | 3 | |||||||
Dilution impact from TC PipeLines, LP units issued (Note 25) | 9 | 79 | ||||||
Redemption of subsidiary's preferred shares | -6 | -194 | ||||||
Impact of asset drop downs to TC Pipelines, LP (Note 25) | -37 | |||||||
Net income attributable to controlling interests | 1,840 | 1,840 | ||||||
Common share dividends | -1,360 | |||||||
Preferred share dividends | -98 | |||||||
Other comprehensive (loss)/income | -171 | -301 | ||||||
Equity Attributable to Non-Controlling Interests | ||||||||
TC PipeLines, LP | 136 | |||||||
Preferred share dividends of TCPL | 2 | |||||||
Portland | 153 | 15 | ||||||
Other comprehensive income/(loss) attributable to non-controlling interests | 130 | |||||||
Issuance of TC PipeLines, LP units | ||||||||
Proceeds, net of issue costs | 9 | 79 | ||||||
Decrease in TransCanada's ownership of TC PipeLines, LP | -14 | |||||||
Distributions declared to non-controlling interests | -182 | |||||||
Redemption of subsidiary's preferred shares | -6 | -194 | ||||||
Foreign exchange and other | 0 | |||||||
Balance at end of year at Dec. 31, 2014 | 20,653 | 19,070 | 12,202 | 2,255 | 370 | 5,478 | -1,235 | 1,583 |
DESCRIPTION_OF_TRANSCANADAS_BU
DESCRIPTION OF TRANSCANADA'S BUSINESS | 12 Months Ended |
Dec. 31, 2014 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
DESCRIPTION OF TRANSCANADA'S BUSINESS | DESCRIPTION OF TRANSCANADA'S BUSINESS |
TransCanada Corporation (TransCanada or the Company) is a leading North American energy infrastructure company which operates in three business segments, Natural Gas Pipelines, Liquids Pipelines and Energy, each of which offers different products and services. | |
Natural Gas Pipelines | |
The Natural Gas Pipelines segment consists of the Company's investments in 68,000 km (42,000 miles) of regulated natural gas pipelines and 400 Bcf of regulated natural gas storage facilities. These assets are located in Canada, the United States and Mexico. | |
Liquids Pipelines | |
The Liquids Pipelines segment consists of 4,250 km (2,600 miles) of wholly owned and operated crude oil pipeline systems which connect Alberta and U.S. crude oil supplies to U.S. refining markets in Illinois, Oklahoma and Texas. | |
Energy | |
The Energy segment primarily consists of the Company's investments in 19 electrical power generation plants and 2 non-regulated natural gas storage facilities. These include Canadian plants in Alberta, Ontario, Québec and New Brunswick and U.S. plants in New York, New England and Arizona. |
ACCOUNTING_POLICIES
ACCOUNTING POLICIES | 12 Months Ended | |
Dec. 31, 2014 | ||
Accounting Policies [Abstract] | ||
ACCOUNTING POLICIES | ACCOUNTING POLICIES | |
The Company's consolidated financial statements have been prepared by management in accordance with United States generally accepted accounting principles (GAAP). Amounts are stated in Canadian dollars unless otherwise indicated. | ||
Basis of Presentation | ||
The consolidated financial statements include the accounts of TransCanada and its subsidiaries. The Company consolidates its interest in entities over which it is able to exercise control. To the extent there are interests owned by other parties, these interests are included in Non-Controlling Interests. TransCanada uses the equity method of accounting for joint ventures in which the Company is able to exercise joint control and for investments in which the Company is able to exercise significant influence. TransCanada records its proportionate share of undivided interests in certain assets. Certain prior year amounts have been reclassified to conform to current year presentation. | ||
Use of Estimates and Judgments | ||
In preparing these financial statements, TransCanada is required to make estimates and assumptions that affect both the amount and timing of recording assets, liabilities, revenues and expenses since the determination of these items may be dependent on future events. The Company uses the most current information available and exercises careful judgment in making these estimates and assumptions. Significant estimates and assumptions used in the preparation of the consolidated financial statements include, but are not limited to: | ||
• | carrying values and depreciation rates of plant, property and equipment (Note 7); | |
• | carrying value of equity investments (Note 8); | |
• | carrying value of regulatory assets and liabilities (Note 9); | |
• | carrying value of goodwill (Note 10); | |
• | amortization rates and carrying values of intangible assets (Note 11); | |
• | carrying value of asset retirement obligations (Note 14); | |
• | provisions for income taxes (Note 16); | |
• | assumptions used to measure retirement and other postretirement obligations (Note 22); | |
• | fair value of financial instruments (Note 23); and | |
• | provision for commitments, contingencies and guarantees (Note 26). | |
Actual results could differ from those estimates. | ||
Regulation | ||
In Canada, regulated natural gas pipelines and liquids pipelines are subject to the authority of the National Energy Board (NEB) of Canada. In the U.S., natural gas pipelines, liquids pipelines and regulated natural gas storage assets are subject to the authority of the U.S. Federal Energy Regulatory Commission (FERC). In Mexico, natural gas pipelines are subject to the authority of the Energy Regulatory Commission of Mexico (CRE). The Company's Canadian, U.S. and Mexican natural gas transmission operations are regulated with respect to construction, operations and the determination of tolls. Rate-regulated accounting (RRA) standards may impact the timing of the recognition of certain revenues and expenses in TransCanada's rate-regulated businesses which may differ from that otherwise expected in non-rate-regulated businesses to appropriately reflect the economic impact of the regulators' decisions regarding revenues and tolls. TransCanada's businesses that apply RRA currently include Canadian, U.S. and Mexican natural gas pipelines, regulated U.S. natural gas storage and certain of our liquids pipelines projects. RRA is not applicable to the Keystone Pipeline System and, as a result, the regulators' decisions regarding operations and tolls on that system generally do not have an impact on timing of recognition of revenues and expenses. | ||
Revenue Recognition | ||
Natural Gas and Liquids Pipelines | ||
Revenues from the Company's natural gas and liquids pipelines, with the exception of Canadian natural gas pipelines which are subject to RRA, are generated from contractual arrangements for committed capacity and from the transportation of natural gas or crude oil. Revenues earned from firm contracted capacity arrangements are recognized ratably over the contract period regardless of the amount of natural gas or crude oil that is transported. Transportation revenues for interruptible or volumetric-based services are recognized when physical deliveries of natural gas or crude oil are made. The U.S. natural gas pipelines are subject to FERC regulations and, as a result, revenues collected may be subject to refund during a rate proceeding. Allowances for these potential refunds are recognized at the time of the regulatory decision. | ||
Revenues from Canadian natural gas pipelines subject to RRA are recognized in accordance with decisions made by the NEB. The Company's Canadian natural gas pipeline rates are based on revenue requirements designed to recover the costs of providing natural gas transportation services, which include a return of and return on capital, as approved by the NEB. The Company's Canadian natural gas pipelines are not subject to risks related to variances in revenues and most costs. These variances are generally subject to deferral treatment and are recovered or refunded in future rates. The Company's Canadian natural gas pipelines are periodically subject to incentive mechanisms, as negotiated with shippers and approved by the NEB. These mechanisms can result in the Company recognizing more or less revenue than required to recover the costs that are subject to incentives. Revenues are recognized on firm contracted capacity ratably over the contract period. Revenues from interruptible or volumetric-based services are recorded when physical delivery is made. Revenues recognized prior to an NEB decision on rates for that period reflect the NEB's last approved rate of return on common equity (ROE) assumptions. Adjustments to revenue are recorded when the NEB decision is received. | ||
Revenues from the Company's regulated natural gas storage services are recognized ratably over the contract period for firm committed capacity regardless of the amount of natural gas that is stored and when gas is injected or withdrawn for interruptible or volumetric-based services. The Company does not take ownership of the gas or oil that it transports or stores for others. | ||
Energy | ||
Power | ||
Revenues from the Company's Energy business are primarily derived from the sale of electricity and from the sale of unutilized natural gas fuel, which are recorded at the time of delivery. Revenues also include capacity payments and ancillary services, as well as gains and losses resulting from the use of commodity derivative contracts. The accounting for derivative contracts is described in the Derivative Instruments and Hedging Activities section of this note. | ||
Natural Gas Storage | ||
Revenues earned from providing non-regulated natural gas storage services are recognized in accordance with the terms of the natural gas storage contracts, which is generally over the term of the contract. Revenues earned on the sale of proprietary natural gas are recorded in the month of delivery. Derivative contracts for the purchase or sale of natural gas are recorded at fair value with changes in fair value recorded in Revenues. | ||
Cash and Cash Equivalents | ||
The Company's Cash and Cash Equivalents consist of cash and highly liquid short-term investments with original maturities of three months or less and are recorded at cost, which approximates fair value. | ||
Inventories | ||
Inventories primarily consist of materials and supplies, including spare parts and fuel, and natural gas inventory in storage, and are carried at the lower of weighted average cost or market. | ||
Plant, Property and Equipment | ||
Natural Gas Pipelines | ||
Plant, property and equipment for natural gas pipelines are carried at cost. Depreciation is calculated on a straight-line basis once the assets are ready for their intended use. Pipeline and compression equipment are depreciated at annual rates ranging from one per cent to six per cent, and metering and other plant equipment are depreciated at various rates, reflecting their estimated useful lives. The cost of major overhauls of equipment is capitalized and depreciated over the estimated service lives of the overhauls. The cost of regulated natural gas pipelines includes an allowance for funds used during construction (AFUDC) consisting of a debt component and an equity component based on the rate of return on rate base approved by regulators. AFUDC is reflected as an increase in the cost of the assets in plant, property and equipment and the equity component of AFUDC is a non-cash expenditure with a corresponding credit recognized in Interest Income and Other. Interest is capitalized during construction of non-regulated natural gas pipelines. | ||
When regulated natural gas pipelines retire plant, property and equipment from service, the original book cost is removed from the gross plant amount and recorded as a reduction to accumulated depreciation. Costs incurred to remove a plant from service, net of any salvage proceeds, are also recorded in accumulated depreciation. | ||
Liquids Pipelines | ||
Plant, property and equipment for liquids pipelines are carried at cost. Depreciation is calculated on a straight-line basis once the assets are ready for their intended use. Pipeline and pumping equipment are depreciated at annual rates ranging from two per cent to 2.5 per cent, and other plant and equipment are depreciated at various rates. The cost of these assets includes interest capitalized during construction for non-regulated liquids pipelines and AFUDC for regulated pipelines. When liquids pipelines retire plant, property and equipment from service, the original book cost and related accumulated depreciation and amortization are derecognized and any gain or loss is recorded in earnings. | ||
Energy | ||
Power generation and natural gas storage plant, equipment and structures are recorded at cost and, once the assets are ready for their intended use, depreciated by major component on a straight-line basis over their estimated service lives at average annual rates ranging from two per cent to 20 per cent. Other equipment is depreciated at various rates. The cost of major overhauls of equipment is capitalized and depreciated over the estimated service lives of the overhauls. Interest is capitalized on facilities under construction. When these assets are retired from plant, property and equipment, the original book cost and related accumulated depreciation and amortization are derecognized and any gain or loss is recorded in earnings. | ||
Corporate | ||
Corporate plant, property and equipment are recorded at cost and depreciated on a straight-line basis over their estimated useful lives at average annual rates ranging from three per cent to 20 per cent. | ||
Impairment of Long-Lived Assets | ||
The Company reviews long-lived assets, such as plant, property and equipment, and intangible assets for impairment whenever events or changes in circumstances indicate the carrying value may not be recoverable. If the total of the estimated undiscounted future cash flows is less than the carrying value of the assets, an impairment loss is recognized for the excess of the carrying value over the fair value of the assets. | ||
Acquisitions and Goodwill | ||
The Company accounts for business acquisitions using the acquisition method of accounting and, accordingly, the assets and liabilities of the acquired entities are primarily measured at their estimated fair value at the date of acquisition. Goodwill is not amortized and is tested for impairment on an annual basis or more frequently if events or changes in circumstances indicate that the asset might be impaired. The annual review for goodwill impairment is performed at the reporting unit level which is one level below the Company's operating segments. The Company initially assesses qualitative factors to determine whether events or changes in circumstances indicate that the goodwill might be impaired. If TransCanada concludes that it is not more likely than not that fair value of the reporting unit is greater than its carrying value, the first step of the two-step impairment test is performed by comparing the fair value of the reporting unit to its book value, which includes goodwill. If the fair value is less than book value, an impairment is indicated and a second step is performed to measure the amount of the impairment. In the second step, the implied fair value of goodwill is calculated by deducting the recognized amounts of all tangible and intangible net assets of the reporting unit from the fair value determined in the initial assessment. If the carrying value of goodwill exceeds the calculated implied fair value of goodwill, an impairment charge is recorded in an amount equal to the difference. | ||
Power Purchase Arrangements | ||
A PPA is a long-term contract for the purchase or sale of power on a predetermined basis. Substantially all PPAs under which TransCanada buys power are accounted for as operating leases. Initial payments for these PPAs were recognized in Intangible and Other Assets and amortized on a straight-line basis over the term of the contracts, which expire in 2017 and 2020. A portion of these PPAs has been subleased to third parties under terms and conditions similar to the PPAs. The subleases are accounted for as operating leases and TransCanada records the margin earned from the subleases as a component of Revenues. | ||
Income Taxes | ||
The Company uses the asset and liability method of accounting for income taxes. This method requires the recognition of deferred income tax assets and liabilities for future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred income tax assets and liabilities are measured using enacted tax rates at the balance sheet date that are anticipated to apply to taxable income in the years in which temporary differences are expected to be reversed or settled. Changes to these balances are recognized in income in the period during which they occur except for changes in balances related to the Canadian Mainline, NGTL System and Foothills, which are deferred until they are refunded or recovered in tolls, as permitted by the NEB. | ||
Canadian income taxes are not provided on the unremitted earnings of foreign investments that the Company does not intend to repatriate in the foreseeable future. | ||
Asset Retirement Obligations | ||
The Company recognizes the fair value of a liability for asset retirement obligations (ARO) in the period in which it is incurred, when a legal obligation exists and a reasonable estimate of fair value can be made. The fair value is added to the carrying amount of the associated asset and the liability is accreted through charges to operating expenses. | ||
Recorded ARO relates to the non-regulated natural gas storage operations and certain power generation facilities. The scope and timing of asset retirements related to natural gas pipelines, liquids pipelines and hydroelectric power plants is indeterminable. As a result, the Company has not recorded an amount for ARO related to these assets, with the exception of certain abandoned facilities. | ||
Environmental Liabilities | ||
The Company records liabilities on an undiscounted basis for environmental remediation efforts that are likely to occur and where the cost can be reasonably estimated. The estimates, including associated legal costs, are based on available information using existing technology and enacted laws and regulations. The estimates are subject to revision in future periods based on actual costs incurred or new circumstances. Amounts expected to be recovered from other parties, including insurers, are recorded as an asset separate from the associated liability. | ||
Emission allowances or credits purchased for compliance are recorded on the Balance Sheet at historical cost and expensed when they are utilized. Compliance costs are expensed when incurred. Allowances granted to or internally generated by TransCanada are not attributed a value for accounting purposes. When required, TransCanada accrues emission liabilities on the Balance Sheet upon the generation or sale of power using the best estimate of the amount required to settle the obligation. Allowances and credits not used for compliance are sold and any gain or loss is recorded in Revenues. | ||
Stock Options and Other Compensation Programs | ||
TransCanada's Stock Option Plan permits options for the purchase of common shares to be awarded to certain employees, including officers. Stock options granted are recorded using the fair value method. Under this method, compensation expense is measured at the grant date based on the fair value as calculated using a binomial model and is recognized on a straight-line basis over the vesting period, with an offset to Additional Paid-In Capital. Upon exercise of stock options, amounts originally recorded against Additional Paid-In Capital are reclassified to Common Shares. | ||
The Company has medium-term incentive plans, under which payments are made to eligible employees. The expense related to these incentive plans is accounted for on an accrual basis. Under these plans, benefits vest when certain conditions are met, including the employees' continued employment during a specified period and achievement of specified corporate performance targets. | ||
Employee Post-Retirement Benefits | ||
The Company sponsors defined benefit pension plans (DB Plans), defined contribution plans (DC Plans), a savings plan and other post-retirement benefit plans. Contributions made by the Company to the DC Plans and savings plan are expensed in the period in which contributions are made. The cost of the DB Plans and other post-retirement benefits received by employees is actuarially determined using the projected benefit method pro-rated based on service and management's best estimate of expected plan investment performance, salary escalation, retirement age of employees and expected health care costs. | ||
The DB Plans' assets are measured at fair value at December 31 of each year. The expected return on the DB Plans' assets is determined using market-related values based on a five-year moving average value for all of the DB Plans' assets. Past service costs are amortized over the expected average remaining service life of the employees. Adjustments arising from plan amendments are amortized on a straight-line basis over the average remaining service life of employees active at the date of amendment. The Company recognizes the overfunded or underfunded status of its DB Plans as an asset or liability, respectively, on its Balance Sheet and recognizes changes in that funded status through Other Comprehensive Income (OCI) in the year in which the change occurs. The excess of net actuarial gains or losses over 10 per cent of the greater of the benefit obligation and the market-related value of the DB Plans' assets, if any, is amortized out of Accumulated Other Comprehensive Loss (AOCI) over the average remaining service life of the active employees. When the restructuring of a benefit plan gives rise to both a curtailment and a settlement, the curtailment is accounted for prior to the settlement. | ||
For certain regulated operations, post-retirement benefit amounts are recoverable through tolls as benefits are funded. The Company records any unrecognized gains or losses or changes in actuarial assumptions related to these post-retirement benefit plans as either regulatory assets or liabilities. The regulatory assets or liabilities are amortized on a straight-line basis over the expected average remaining service life of active employees. | ||
Foreign Currency Transactions and Translation | ||
Foreign currency transactions are those transactions whose terms are denominated in a currency other than the currency of the primary economic environment in which the company or reporting subsidiary operates, referred to as the functional currency. Transactions denominated in foreign currencies are translated into the functional currency using the exchange rate prevailing at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are translated to the functional currency using the rate of exchange in effect at the balance sheet date whereas non-monetary assets and liabilities are translated at the historical rate of exchange in effect on the date of the transaction. Exchange gains and losses resulting from translation of monetary assets and liabilities are recorded in income except for exchange gains and losses of the foreign currency debt related to Canadian regulated natural gas pipelines, which are deferred until they are refunded or recovered in tolls, as permitted by the NEB. | ||
Gains and losses arising from translation of foreign operations' functional currencies to the Company's Canadian dollar reporting currency are reflected in OCI. Asset and liability accounts are translated at the period-end exchange rates while revenues, expenses, gains and losses are translated at the exchange rates in effect at the time of the transaction. The Company's U.S. dollar-denominated debt has been designated as a hedge of the net investment in foreign subsidiaries and, as a result, the unrealized foreign exchange gains and losses on the U.S. dollar denominated debt are also reflected in OCI. | ||
Derivative Instruments and Hedging Activities | ||
All derivative instruments are recorded on the balance sheet at fair value, unless they qualify for and are designated under a normal purchase and normal sales exemption, or are considered to meet other permitted exemptions. | ||
The Company applies hedge accounting to arrangements that qualify and are designated for hedge accounting treatment, which includes fair value and cash flow hedges, and hedges of foreign currency exposures of net investments in foreign operations. Hedge accounting is discontinued prospectively if the hedging relationship ceases to be effective or the hedging or hedged items cease to exist as a result of maturity, expiry, sale, termination, cancellation or exercise. | ||
In a fair value hedging relationship, the carrying value of the hedged item is adjusted for changes in fair value attributable to the hedged risk and these changes are recognized in Net Income. Changes in the fair value of the hedged item, to the extent that the hedging relationship is effective, are offset by changes in the fair value of the hedging item, which are also recorded in Net Income. Changes in the fair value of foreign exchange and interest rate fair value hedges are recorded in Interest Income and Other and Interest Expense, respectively. If hedge accounting is discontinued, the carrying value of the hedged item is no longer adjusted and the cumulative fair value adjustments to the carrying value of the hedged item are amortized to Net Income over the remaining term of the original hedging relationship. | ||
In a cash flow hedging relationship, the effective portion of the change in the fair value of the hedging derivative is initially recognized in OCI, while any ineffective portion is recognized in Net Income in the same financial statement category as the underlying transaction. When hedge accounting is discontinued, the amounts recognized previously in AOCI are reclassified to Revenues, Interest Expense and Interest Income and Other, as appropriate, during the periods when the variability in cash flows of the hedged item affects Net Income or as the original hedged item settles. Gains and losses on derivatives are reclassified immediately to Net Income from AOCI when the hedged item is sold or terminated early, or when it becomes probable that the anticipated transaction will not occur. | ||
In hedging the foreign currency exposure of a net investment in a foreign operation, the effective portion of foreign exchange gains and losses on the hedging instruments is recognized in OCI and the ineffective portion is recognized in Net Income. The amounts recognized previously in AOCI are reclassified to Net Income in the event the Company reduces its net investment in a foreign operation. | ||
In some cases, derivatives do not meet the specific criteria for hedge accounting treatment. In these instances, the changes in fair value are recorded in Net Income in the period of change. | ||
The recognition of gains and losses on derivatives for Canadian natural gas regulated pipelines exposures is determined through the regulatory process. Gains and losses arising from changes in the fair value of derivatives accounted for as part of RRA, including those that qualify for hedge accounting treatment, can be recovered through the tolls charged by the Company. As a result, these gains and losses are deferred as Regulatory Assets or Regulatory Liabilities and are refunded to or collected from the ratepayers, in subsequent years when the derivative settles. | ||
Derivatives embedded in other financial instruments or contracts (host instrument) are recorded as separate derivatives. Embedded derivatives are measured at fair value if their economic characteristics are not clearly and closely related to those of the host instrument, their terms are the same as those of a stand-alone derivative and the total contract is not held for trading or accounted for at fair value. When changes in the fair value of embedded derivatives are measured separately, they are included in Net Income. | ||
Long-Term Debt Transaction Costs | ||
The Company records Long-Term Debt transaction costs as other assets and amortizes these costs using the effective interest method for all costs except those related to the Canadian natural gas regulated pipelines, which continue to be amortized on a straight-line basis in accordance with the provisions of regulatory tolling mechanisms. | ||
Guarantees | ||
Upon issuance, the Company records the fair value of certain guarantees entered into by the Company or partially owned entities for which contingent payments may be made. The fair value of these guarantees is estimated by discounting the cash flows that would be incurred by the Company if letters of credit were used in place of the guarantees as appropriate in the circumstances. Guarantees are recorded as an increase to Equity Investments, Plant, Property and Equipment, or a charge to Net Income, and a corresponding liability is recorded in Other Long-Term Liabilities. |
ACCOUNTING_CHANGES
ACCOUNTING CHANGES | 12 Months Ended |
Dec. 31, 2014 | |
Accounting Changes and Error Corrections [Abstract] | |
ACCOUNTING CHANGES | ACCOUNTING CHANGES |
Changes in Accounting Policies for 2014 | |
Obligations resulting from joint and several liability arrangements | |
In February 2013, the FASB issued guidance for recognizing, measuring, and disclosing obligations resulting from joint and several liability arrangements when the total amount of the obligation is fixed at the reporting date. Debt arrangements, other contractual obligations, and settled litigation and judicial rulings are examples of these obligations. This new guidance was effective January 1, 2014 and there was no material impact on the Company’s consolidated financial statements as a result of applying this new standard. | |
Foreign currency matters - cumulative translation adjustment | |
In March 2013, the FASB issued amended guidance related to the release of the cumulative translation adjustment into net income when a parent either sells a part or all of its investment in a foreign entity or no longer holds a controlling financial interest in a subsidiary or group of assets that is a business. This new guidance was applied prospectively from January 1, 2014 and there was no material impact on the Company’s consolidated financial statements as a result of applying this new standard. | |
Unrecognized tax benefit | |
In July 2013, the FASB issued amended guidance on the financial statement presentation of an unrecognized tax benefit when a net operating loss carryforward, a similar tax loss, or a tax credit carryforward exists. This new guidance was effective January 1, 2014. There was no material impact on the Company's consolidated financial statements as a result of applying this new standard. | |
Future Accounting Changes | |
Reporting discontinued operations | |
In April 2014, the FASB issued amended guidance on the reporting of discontinued operations. The criteria of what will qualify as a discontinued operation has changed and there are expanded disclosures required. This new guidance is effective from January 1, 2015 and will be applied prospectively. The Company does not expect the adoption of this new standard to have a material impact on its consolidated financial statements. | |
Revenue from contracts with customers | |
In May 2014, the FASB issued new guidance on revenue from contracts with customers. This guidance supersedes the current revenue recognition requirements and most industry-specific guidance. This new guidance requires that an entity recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. This new guidance is effective from January 1, 2017 with two methods in which the amendment can be applied: (1) retrospectively to each prior reporting period presented, or (2) retrospectively with the cumulative effect recognized at the date of initial application. Early application is not permitted. The Company is currently evaluating the impact of the adoption of this ASU and has not yet determined the effect on its consolidated financial statements. |
SEGMENTED_INFORMATION
SEGMENTED INFORMATION | 12 Months Ended | ||||||||||||||
Dec. 31, 2014 | |||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||
SEGMENTED INFORMATION | SEGMENTED INFORMATION | ||||||||||||||
year ended December 31, 2014 | Natural Gas | Liquids | Energy | Corporate | Total | ||||||||||
(millions of Canadian dollars) | Pipelines | Pipelines | |||||||||||||
Revenues | 4,913 | 1,547 | 3,725 | — | 10,185 | ||||||||||
Income from Equity Investments | 163 | — | 359 | — | 522 | ||||||||||
Plant Operating Costs and Other | (1,501 | ) | (426 | ) | (919 | ) | (127 | ) | (2,973 | ) | |||||
Commodity Purchases Resold | — | — | (1,836 | ) | — | (1,836 | ) | ||||||||
Property Taxes | (334 | ) | (62 | ) | (77 | ) | — | (473 | ) | ||||||
Depreciation and Amortization | (1,063 | ) | (216 | ) | (309 | ) | (23 | ) | (1,611 | ) | |||||
Gain on Sale of Assets | 9 | — | 108 | — | 117 | ||||||||||
Segment earnings | 2,187 | 843 | 1,051 | (150 | ) | 3,931 | |||||||||
Interest Expense | (1,198 | ) | |||||||||||||
Interest Income and Other | 91 | ||||||||||||||
Income before Income Taxes | 2,824 | ||||||||||||||
Income Tax Expense | (831 | ) | |||||||||||||
Net Income | 1,993 | ||||||||||||||
Net Income Attributable to Non-Controlling Interests | (153 | ) | |||||||||||||
Net Income Attributable to Controlling Interests | 1,840 | ||||||||||||||
Preferred Share Dividends | (97 | ) | |||||||||||||
Net Income Attributable to Common Shares | 1,743 | ||||||||||||||
Capital Spending | |||||||||||||||
Capital Expenditures | 1,768 | 1,530 | 206 | 46 | 3,550 | ||||||||||
Projects Under Development | 368 | 439 | — | — | 807 | ||||||||||
2,136 | 1,969 | 206 | 46 | 4,357 | |||||||||||
at December 31, 2014 | |||||||||||||||
(millions of Canadian dollars) | |||||||||||||||
Total Assets | 27,103 | 16,116 | 14,197 | 1,531 | 58,947 | ||||||||||
year ended December 31, 2013 | Natural Gas | Liquids | Energy | Corporate | Total | ||||||||||
(millions of Canadian dollars) | Pipelines | Pipelines | |||||||||||||
Revenues | 4,497 | 1,124 | 3,176 | — | 8,797 | ||||||||||
Income from Equity Investments | 145 | — | 452 | — | 597 | ||||||||||
Plant Operating Costs and Other | (1,405 | ) | (328 | ) | (833 | ) | (108 | ) | (2,674 | ) | |||||
Commodity Purchases Resold | — | — | (1,317 | ) | — | (1,317 | ) | ||||||||
Property Taxes | (329 | ) | (44 | ) | (72 | ) | — | (445 | ) | ||||||
Depreciation and Amortization | (1,027 | ) | (149 | ) | (293 | ) | (16 | ) | (1,485 | ) | |||||
Segment earnings | 1,881 | 603 | 1,113 | (124 | ) | 3,473 | |||||||||
Interest Expense | (985 | ) | |||||||||||||
Interest Income and Other | 34 | ||||||||||||||
Income before Income Taxes | 2,522 | ||||||||||||||
Income Tax Expense | (611 | ) | |||||||||||||
Net Income | 1,911 | ||||||||||||||
Net Income Attributable to Non-Controlling Interests | (125 | ) | |||||||||||||
Net Income Attributable to Controlling Interests | 1,786 | ||||||||||||||
Preferred Share Dividends | (74 | ) | |||||||||||||
Net Income Attributable to Common Shares | 1,712 | ||||||||||||||
Capital Spending | |||||||||||||||
Capital Expenditures | 1,776 | 2,286 | 152 | 50 | 4,264 | ||||||||||
Projects Under Development | 245 | 243 | — | — | 488 | ||||||||||
2,021 | 2,529 | 152 | 50 | 4,752 | |||||||||||
at December 31, 2013 | |||||||||||||||
(millions of Canadian dollars) | |||||||||||||||
Total Assets | 25,165 | 13,253 | 13,747 | 1,733 | 53,898 | ||||||||||
year ended December 31, 2012 | Natural Gas | Liquids | Energy | Corporate | Total | ||||||||||
(millions of Canadian dollars) | Pipelines | Pipelines | |||||||||||||
Revenues | 4,264 | 1,039 | 2,704 | — | 8,007 | ||||||||||
Income from Equity Investments | 157 | — | 100 | — | 257 | ||||||||||
Plant Operating Costs and Other | (1,365 | ) | (296 | ) | (819 | ) | (97 | ) | (2,577 | ) | |||||
Commodity Purchases Resold | — | — | (1,049 | ) | — | (1,049 | ) | ||||||||
Property Taxes | (315 | ) | (45 | ) | (74 | ) | — | (434 | ) | ||||||
Depreciation and Amortization | (933 | ) | (145 | ) | (283 | ) | (14 | ) | (1,375 | ) | |||||
Segment earnings | 1,808 | 553 | 579 | (111 | ) | 2,829 | |||||||||
Interest Expense | (976 | ) | |||||||||||||
Interest Income and Other | 85 | ||||||||||||||
Income before Income Taxes | 1,938 | ||||||||||||||
Income Tax Expense | (466 | ) | |||||||||||||
Net Income | 1,472 | ||||||||||||||
Net Income Attributable to Non-Controlling Interests | (118 | ) | |||||||||||||
Net Income Attributable to Controlling Interests | 1,354 | ||||||||||||||
Preferred Share Dividends | (55 | ) | |||||||||||||
Net Income Attributable to Common Shares | 1,299 | ||||||||||||||
Capital Spending | |||||||||||||||
Capital Expenditures | 1,389 | 1,145 | 24 | 37 | 2,595 | ||||||||||
Projects Under Development | — | 3 | — | — | 3 | ||||||||||
1,389 | 1,148 | 24 | 37 | 2,598 | |||||||||||
at December 31, 2012 | |||||||||||||||
(millions of Canadian dollars) | |||||||||||||||
Total Assets | 23,210 | 10,485 | 13,157 | 1,481 | 48,333 | ||||||||||
Geographic Information | |||||||||||||||
year ended December 31 | 2014 | 2013 | 2012 | ||||||||||||
(millions of Canadian dollars) | |||||||||||||||
Revenues | |||||||||||||||
Canada – domestic | 4,021 | 4,659 | 3,527 | ||||||||||||
Canada – export | 1,314 | 997 | 1,121 | ||||||||||||
United States | 4,653 | 3,029 | 3,252 | ||||||||||||
Mexico | 197 | 112 | 107 | ||||||||||||
10,185 | 8,797 | 8,007 | |||||||||||||
at December 31 | 2014 | 2013 | |||||||||||||
(millions of Canadian dollars) | |||||||||||||||
Plant, Property and Equipment | |||||||||||||||
Canada | 19,191 | 18,462 | |||||||||||||
United States | 20,098 | 17,570 | |||||||||||||
Mexico | 2,485 | 1,574 | |||||||||||||
41,774 | 37,606 | ||||||||||||||
OTHER_CURRENT_ASSETS
OTHER CURRENT ASSETS | 12 Months Ended | |||||
Dec. 31, 2014 | ||||||
Other Assets [Abstract] | ||||||
OTHER CURRENT ASSETS | OTHER CURRENT ASSETS | |||||
at December 31 | 2014 | 2013 | ||||
(millions of Canadian dollars) | ||||||
Deferred income tax assets (Note 16) | 427 | 119 | ||||
Cash held as collateral | 423 | 42 | ||||
Fair value of derivative contracts (Note 23) | 409 | 395 | ||||
Other | 171 | 164 | ||||
Regulatory Assets (Note 9) | 16 | 42 | ||||
Assets held for sale (Note 6) | — | 85 | ||||
1,446 | 847 | |||||
ASSETS_HELD_FOR_SALE
ASSETS HELD FOR SALE | 12 Months Ended | |||
Dec. 31, 2014 | ||||
Property, Plant and Equipment [Abstract] | ||||
ASSETS HELD FOR SALE | ASSETS HELD FOR SALE | |||
at December 31 | 2013 | |||
(millions of Canadian dollars) | ||||
Assets Held for Sale | ||||
Cash and Cash Equivalents | 1 | |||
Accounts Receivable | 12 | |||
Inventories | 11 | |||
Plant, Property and Equipment | 61 | |||
Total Assets Held for Sale (included in Other Current Assets, Note 5) | 85 | |||
Liabilities Related to Assets Held for Sale | ||||
Accounts Payable and Other | 4 | |||
Other Long-Term Liabilities | 1 | |||
Total Liabilities Related to Assets Held for Sale (included in Accounts Payable and Other, Note 13) | 5 | |||
The Company classifies assets as held for sale when management approves and commits to a formal plan to actively market an asset for sale and expects the sale to close within the next twelve months. Upon classifying an asset as held for sale, an asset is recorded at the lower of its carrying amount or its estimated fair value, reduced for selling costs, and depreciation expense is no longer recorded for that asset. | ||||
At December 31, 2013, the Company classified Cancarb Limited and its related power generation facility as assets held for sale in the Energy segment. The assets were recorded at their carrying amount at December 31, 2013. | ||||
On April 15, 2014, the Company sold these assets for aggregate gross proceeds of $190 million and recognized a gain of $108 million ($99 million after tax). |
PLANT_PROPERTY_AND_EQUIPMENT
PLANT, PROPERTY AND EQUIPMENT | 12 Months Ended | |||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||
Property, Plant and Equipment [Abstract] | ||||||||||||||||||
PLANT, PROPERTY AND EQUIPMENT | PLANT, PROPERTY AND EQUIPMENT | |||||||||||||||||
2014 | 2013 | |||||||||||||||||
at December 31 | Cost | Accumulated | Net | Cost | Accumulated | Net | ||||||||||||
(millions of Canadian dollars) | Depreciation | Book Value | Depreciation | Book Value | ||||||||||||||
Natural Gas Pipelines | ||||||||||||||||||
Canadian Mainline | ||||||||||||||||||
Pipeline | 9,045 | 5,712 | 3,333 | 8,970 | 5,457 | 3,513 | ||||||||||||
Compression | 3,423 | 2,100 | 1,323 | 3,392 | 1,961 | 1,431 | ||||||||||||
Metering and other | 458 | 180 | 278 | 409 | 174 | 235 | ||||||||||||
12,926 | 7,992 | 4,934 | 12,771 | 7,592 | 5,179 | |||||||||||||
Under construction | 135 | — | 135 | 85 | — | 85 | ||||||||||||
13,061 | 7,992 | 5,069 | 12,856 | 7,592 | 5,264 | |||||||||||||
NGTL System | ||||||||||||||||||
Pipeline | 8,185 | 3,619 | 4,566 | 7,813 | 3,410 | 4,403 | ||||||||||||
Compression | 2,055 | 1,318 | 737 | 2,038 | 1,253 | 785 | ||||||||||||
Metering and other | 1,032 | 446 | 586 | 947 | 418 | 529 | ||||||||||||
11,272 | 5,383 | 5,889 | 10,798 | 5,081 | 5,717 | |||||||||||||
Under construction | 413 | — | 413 | 290 | — | 290 | ||||||||||||
11,685 | 5,383 | 6,302 | 11,088 | 5,081 | 6,007 | |||||||||||||
ANR | ||||||||||||||||||
Pipeline | 1,087 | 85 | 1,002 | 922 | 59 | 863 | ||||||||||||
Compression | 741 | 102 | 639 | 635 | 81 | 554 | ||||||||||||
Metering and other | 617 | 110 | 507 | 535 | 91 | 444 | ||||||||||||
2,445 | 297 | 2,148 | 2,092 | 231 | 1,861 | |||||||||||||
Under construction | 115 | — | 115 | 67 | — | 67 | ||||||||||||
2,560 | 297 | 2,263 | 2,159 | 231 | 1,928 | |||||||||||||
Other Natural Gas Pipelines | ||||||||||||||||||
GTN | 1,842 | 588 | 1,254 | 1,685 | 488 | 1,197 | ||||||||||||
Great Lakes | 1,807 | 939 | 868 | 1,650 | 833 | 817 | ||||||||||||
Foothills | 1,671 | 1,180 | 491 | 1,649 | 1,120 | 529 | ||||||||||||
Mexico | 1,518 | 130 | 1,388 | 641 | 90 | 551 | ||||||||||||
Other1 | 1,800 | 363 | 1,437 | 1,652 | 288 | 1,364 | ||||||||||||
8,638 | 3,200 | 5,438 | 7,277 | 2,819 | 4,458 | |||||||||||||
Under construction | 1,132 | — | 1,132 | 1,047 | — | 1,047 | ||||||||||||
9,770 | 3,200 | 6,570 | 8,324 | 2,819 | 5,505 | |||||||||||||
37,076 | 16,872 | 20,204 | 34,427 | 15,723 | 18,704 | |||||||||||||
Liquids Pipelines | ||||||||||||||||||
Keystone | ||||||||||||||||||
Pipeline | 7,931 | 463 | 7,468 | 5,079 | 286 | 4,793 | ||||||||||||
Pumping equipment | 964 | 80 | 884 | 1,118 | 82 | 1,036 | ||||||||||||
Tanks and other | 2,282 | 144 | 2,138 | 962 | 71 | 891 | ||||||||||||
11,177 | 687 | 10,490 | 7,159 | 439 | 6,720 | |||||||||||||
Under construction2 | 4,438 | — | 4,438 | 6,020 | — | 6,020 | ||||||||||||
15,615 | 687 | 14,928 | 13,179 | 439 | 12,740 | |||||||||||||
Energy | ||||||||||||||||||
Natural Gas – Ravenswood | 2,140 | 476 | 1,664 | 1,966 | 377 | 1,589 | ||||||||||||
Natural Gas – Other3,4 | 3,214 | 971 | 2,243 | 3,061 | 846 | 2,215 | ||||||||||||
Hydro | 736 | 156 | 580 | 673 | 126 | 547 | ||||||||||||
Wind | 970 | 190 | 780 | 946 | 155 | 791 | ||||||||||||
Natural Gas Storage | 653 | 99 | 554 | 677 | 92 | 585 | ||||||||||||
Solar5 | 488 | 13 | 475 | 226 | 2 | 224 | ||||||||||||
Other | 64 | 19 | 45 | 57 | 30 | 27 | ||||||||||||
8,265 | 1,924 | 6,341 | 7,606 | 1,628 | 5,978 | |||||||||||||
Under construction | 149 | — | 149 | 54 | — | 54 | ||||||||||||
8,414 | 1,924 | 6,490 | 7,660 | 1,628 | 6,032 | |||||||||||||
Corporate | 232 | 80 | 152 | 191 | 61 | 130 | ||||||||||||
61,337 | 19,563 | 41,774 | 55,457 | 17,851 | 37,606 | |||||||||||||
1 | Includes Bison, Portland, North Baja, Tuscarora and Ventures LP. | |||||||||||||||||
2 | Includes $3.2 billion for Keystone XL at December 31, 2014 (2013 – $2.6 billion). Keystone XL remains subject to regulatory approvals. | |||||||||||||||||
3 | Includes facilities with long-term PPAs that are accounted for as operating leases. The cost and accumulated depreciation of these facilities were $695 million and $103 million, respectively, at December 31, 2014 (2013 – $640 million and $78 million, respectively). Revenues of $81 million were recognized in 2014 (2013 – $78 million; 2012 – $73 million) through the sale of electricity under the related PPAs. | |||||||||||||||||
4 | Includes Halton Hills, Coolidge, Bécancour, Ocean State Power, Mackay River and other natural gas-fired facilities. | |||||||||||||||||
5 | Includes the acquisitions of four solar power facilities in each of 2014 and 2013. |
EQUITY_INVESTMENTS
EQUITY INVESTMENTS | 12 Months Ended | |||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||
Equity Method Investments and Joint Ventures [Abstract] | ||||||||||||||||||
EQUITY INVESTMENTS | EQUITY INVESTMENTS | |||||||||||||||||
(millions of Canadian dollars) | Ownership | Income/(Loss) from Equity | Equity | |||||||||||||||
 Interest at | Investments | Investments | ||||||||||||||||
 December 31, 2014 | year ended December 31 | at December 31 | ||||||||||||||||
2014 | 2013 | 2012 | 2014 | 2013 | ||||||||||||||
Natural Gas Pipelines | ||||||||||||||||||
Northern Border1,2 | 76 | 66 | 72 | 587 | 557 | |||||||||||||
Iroquois | 44.5 | % | 43 | 41 | 41 | 210 | 188 | |||||||||||
TQM | 50 | % | 12 | 13 | 16 | 73 | 76 | |||||||||||
Other | Various | 32 | 25 | 28 | 68 | 62 | ||||||||||||
Energy | ||||||||||||||||||
Bruce A3 | 48.9 | % | 209 | 202 | (149 | ) | 3,944 | 3,988 | ||||||||||
Bruce B3 | 31.6 | % | 105 | 108 | 163 | 51 | 377 | |||||||||||
ASTC Power Partnership | 50 | % | 8 | 110 | 40 | 29 | 41 | |||||||||||
Portlands Energy | 50 | % | 36 | 31 | 28 | 335 | 343 | |||||||||||
Other4 | Various | 1 | 1 | 18 | 61 | 57 | ||||||||||||
Liquids Pipelines | ||||||||||||||||||
Grand Rapids | 50 | % | — | — | — | 240 | 70 | |||||||||||
522 | 597 | 257 | 5,598 | 5,759 | ||||||||||||||
1 | The results reflect a 50 per cent interest in Northern Border as a result of the Company fully consolidating TC PipeLines, LP. At December 31, 2014, TransCanada had an ownership interest in TC PipeLines, LP of 28.3 per cent (2013 – 28.9 and 2012 – 33.3 per cent) and its effective ownership of Northern Border, net of non-controlling interests, was 14.2 per cent (2013 – 14.5 and 2012 – 16.7 per cent). | |||||||||||||||||
2 | At December 31, 2014, the difference between the carrying value of the investment and the underlying equity in the net assets of Northern Border Pipeline Company is US$117 million (2013 – US$118 million) due to the fair value assessment of assets at the time of acquisition. | |||||||||||||||||
3 | At December 31, 2014, the difference between the carrying value of the investment and the underlying equity in the net assets of Bruce Power is $776 million (2013 – $820 million) due to the fair value assessment of assets at the time of acquisition. | |||||||||||||||||
4 | In December 2012, TransCanada acquired the remaining 40 per cent interest in CrossAlta to bring the Company's ownership interest to 100 per cent. The results reflect the Company's 60 per cent share of equity income up to that date. | |||||||||||||||||
Distributions received from equity investments for the year ended December 31, 2014 were $726 million (2013 – $725 million; 2012 – $436 million) of which $147 million (2013 – $120 million; 2012 – $60 million) were returns of capital and are included in Deferred Amounts and Other in the Consolidated Statement of Cash Flows. The undistributed earnings from equity investments as at December 31, 2014 were $551 million (2013 – $754 million; 2012 – $883 million). | ||||||||||||||||||
Summarized Financial Information of Equity Investments | ||||||||||||||||||
year ended December 31 | 2014 | 2013 | 2012 | |||||||||||||||
(millions of Canadian dollars) | ||||||||||||||||||
Income | ||||||||||||||||||
Revenues | 4,814 | 4,989 | 3,860 | |||||||||||||||
Operating and Other Expenses | (3,489 | ) | (3,536 | ) | (3,090 | ) | ||||||||||||
Net Income | 1,264 | 1,390 | 717 | |||||||||||||||
Net Income attributable to TransCanada | 522 | 597 | 257 | |||||||||||||||
at December 31 | 2014 | 2013 | ||||||||||||||||
(millions of Canadian dollars) | ||||||||||||||||||
Balance Sheet | ||||||||||||||||||
Current assets | 1,412 | 1,500 | ||||||||||||||||
Non current assets | 12,260 | 12,158 | ||||||||||||||||
Current liabilities | (1,067 | ) | (1,117 | ) | ||||||||||||||
Non current liabilities | (3,255 | ) | (2,507 | ) |
RATEREGULATED_BUSINESSES
RATE-REGULATED BUSINESSES | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Regulated Operations [Abstract] | |||||||||
RATE-REGULATED BUSINESSES | RATE-REGULATED BUSINESSES | ||||||||
TransCanada's businesses that apply RRA currently include Canadian, U.S. and Mexican natural gas pipelines, regulated U.S. natural gas storage and certain Canadian liquids pipelines currently under development. Regulatory assets and liabilities represent future revenues that are expected to be recovered from or refunded to customers based on decisions and approvals by the applicable regulatory authorities. | |||||||||
Canadian Regulated Operations | |||||||||
The Canadian Mainline, NGTL System, Foothills and TQM pipelines are regulated by the NEB under the National Energy Board Act (Canada). The NEB regulates the construction and operation of facilities, and the terms and conditions of services, including rates, for the Company's Canadian regulated natural gas transmission systems. | |||||||||
TransCanada's Canadian natural gas transmission services are supplied under natural gas transportation tariffs that provide for cost recovery, including return of and return on capital as approved by the NEB. Rates charged for these services are typically set through a process that involves filing an application with the regulator wherein forecasted operating costs, including a return of and on capital, determine the revenue requirement for the upcoming year or multiple years. To the extent that actual costs and revenues are more or less than the forecasted costs and revenues, the regulators generally allow the difference to be deferred to a future period and recovered or refunded in rates at that time. Differences between actual and forecasted costs that the regulator does not allow to be deferred are included in the determination of net income in the year they occur. | |||||||||
Canadian Mainline | |||||||||
On November 28, 2014, the NEB released its decision on TransCanada's 2015-2030 Tolls Application (the NEB 2014 Decision). The NEB 2014 Decision acknowledged that an off-ramp had been reached on the NEB 2013 Decision (discussed below) and approved fixed tolls for 2015 to 2020 as well as certain parameters for a toll setting methodology to 2030. Features of the settlement reached with shippers as approved in the NEB 2014 Decision include an ROE of 10.1 per cent on a deemed common equity of 40 per cent, an incentive mechanism that has both upside and downside risk and a $20 million after-tax annual TransCanada contribution to reduce the revenue requirement. Toll stabilization is achieved through the continued use of deferral accounts, namely the Long Term Adjustment Account (LTAA) and the Bridging Amortization Account, to capture the surplus or the shortfall between the Company's revenues and cost of service for each year over the six-year fixed toll term of the NEB 2014 Decision. TransCanada is required to file a compliance filing with the NEB in first quarter 2015 and a toll review for the 2018 to 2020 period prior to December 31, 2017. | |||||||||
In March 2013, TransCanada received a decision from the NEB which set tolls for 2013 through 2017 at competitive levels, fixing tolls for some services and providing unlimited pricing discretion for others (the NEB 2013 Decision). The decision established an ROE of 11.5 per cent on a deemed common equity of 40 per cent and included mechanisms to achieve the fixed tolls through the use of a LTAA as well as the establishment of a Tolls Stabilization Account (TSA) to capture the surplus or the shortfall between our revenues and our cost of service for each year over the five-year term of the decision. In addition, the decision provided an opportunity to generate incentive earnings by increasing revenues and reducing costs. The NEB also identified certain circumstances that would require a new tolls application prior to the end of the five-year term. One of those circumstances occurred in 2013 when the TSA balance became positive. In December 2013, TransCanada filed the 2015-2030 Tolls Application with the NEB that addressed tolls moving forward including tolls for 2014. | |||||||||
The Canadian Mainline's 2012 results reflect an ROE of 8.08 per cent on a deemed common equity of 40 per cent and excluded incentive earnings. | |||||||||
NGTL System | |||||||||
In November 2013, the NEB approved the NGTL System’s 2013-2014 Revenue Requirement Settlement Application. This settlement is structured similar to the previous multi-year settlement with fixed annual operating, maintenance and administration (OM&A) costs and a 10.1 per cent ROE on a deemed common equity of 40 per cent. Any variance between fixed OM&A costs in the settlement and actual costs accrue to TransCanada. The Settlement also establishes an increase in the composite depreciation rates to 3.05 per cent in 2013 and 3.12 per cent in 2014. | |||||||||
The NGTL System's 2012 results reflected a 9.70 per cent ROE on a deemed common equity of 40 per cent and fixed certain annual OM&A costs. Any variances between actual costs and those agreed to in the settlement then in effect accrued to TransCanada. All other costs were treated on a flow-through basis. | |||||||||
Energy East | |||||||||
Energy East is currently in the development stage, awaiting regulatory approval from the NEB. Tolls will be designed to provide for cost recovery including return of and on capital as approved by the NEB. | |||||||||
Other Canadian Pipelines | |||||||||
The Foothills operating model for 2012 through 2014 provides for recovery of all revenue requirement components on a flow-through basis. TQM operates under a model consisting of fixed and flow-through revenue requirement components for 2012 through 2016. Any variances between actual costs and those included in the fixed component accrue to TQM. | |||||||||
U.S. Regulated Operations | |||||||||
TransCanada's U.S. natural gas pipelines are "natural gas companies" operating under the provisions of the Natural Gas Act of 1938, the Natural Gas Policy Act of 1978 (NGA) and the Energy Policy Act of 2005, and are subject to the jurisdiction of the FERC. The NGA grants the FERC authority over the construction and operation of pipelines and related facilities. The FERC also has authority to regulate rates for natural gas transportation in interstate commerce. The Company's significant regulated U.S. natural gas pipelines are described below. | |||||||||
ANR | |||||||||
ANR's natural gas transportation and storage services are provided under tariffs regulated by the FERC. These tariffs include maximum and minimum rates for services and allow ANR to discount or negotiate rates on a non-discriminatory basis. ANR Pipeline Company rates were established pursuant to a settlement approved by the FERC that was effective for all periods presented, beginning in 1997. ANR Pipeline Company is not required to conduct a review of currently effective rates with the FERC at any time in the future, but is not prohibited from filing for new rates if necessary. | |||||||||
ANR Storage Company rates were established pursuant to a settlement approved by the FERC in August 2012. ANR Storage Company is required to file a NGA Section 4 general rate case no later than July 1, 2016. | |||||||||
TC Offshore LLC, another ANR-related regulated entity, began operating under FERC approved tariff rates on November 1, 2012. TC Offshore LLC is required to file a cost and revenue study to justify its existing approved cost-based rates after its first three years of operation. | |||||||||
Great Lakes | |||||||||
Great Lakes is regulated by the FERC and operates in accordance with a FERC-approved tariff that establishes maximum and minimum rates for its various services and permits Great Lakes to discount or negotiate rates on a non-discriminatory basis. Great Lakes operated under a July 2010 FERC approved rate settlement through October 2013. Effective November 1, 2013, Great Lakes operates under rates established pursuant to a settlement approved by the FERC in November 2013. The settlement provides for a moratorium between November 2013 and March 2015 during which Great Lakes and the settling parties are prohibited from taking certain actions under the NGA, including filing to adjust rates. Great Lakes is required to file for new rates to be effective no later than January 2018. | |||||||||
Other U.S. Pipelines | |||||||||
GTN and Bison are regulated by the FERC and operate in accordance with FERC-approved tariffs that establish maximum and minimum rates for various services. Both pipelines are permitted to discount or negotiate these rates on a non-discriminatory basis. GTN’s rates were established pursuant to a settlement approved by the FERC in January 2012. GTN is required to file for new rates to be effective no later than January 2016. | |||||||||
Bison's rates were established pursuant to its initial certificate to construct and operate the pipeline that initiated service in January 2011. Bison filed a cost and revenue study as required by FERC to justify its existing approved cost-based rates after its first three years of operations. This study was filed by Bison on April 10, 2014 and accepted by FERC on May 20, 2014. At this time Bison is not required to conduct a review of currently effective rates with the FERC at any time in the future but is not prohibited from filing for new rates if necessary. | |||||||||
Mexico Regulated Operations | |||||||||
TransCanada's Mexican operations are regulated by the CRE and operate in accordance with CRE-approved tariffs. In 2014, TransCanada began using RRA for all natural gas pipelines in Mexico. The rates were established based on CRE approved negotiated contracts. | |||||||||
Regulatory Assets and Liabilities | |||||||||
at December 31 | 2014 | 2013 | Remaining | ||||||
Recovery/ | |||||||||
Settlement | |||||||||
(millions of Canadian dollars) | Period (years) | ||||||||
Regulatory Assets | |||||||||
Deferred income taxes1 | 1,001 | 1,149 | n/a | ||||||
Operating and debt-service regulatory assets2 | 4 | 16 | 1 | ||||||
Pensions and other post retirement benefits3 | 236 | 190 | n/a | ||||||
Long Term Adjustment Account4 | — | 354 | 31 | ||||||
Other5 | 72 | 68 | n/a | ||||||
1,313 | 1,777 | ||||||||
Less: Current portion included in Other Current Assets (Note 5) | 16 | 42 | |||||||
1,297 | 1,735 | ||||||||
Regulatory Liabilities | |||||||||
Foreign exchange on long-term debt6 | 42 | 84 | 15-Jan | ||||||
Operating and debt-service regulatory liabilities2 | 21 | 5 | 1 | ||||||
ANR-related post-employment and retirement benefits other than pension7 | 117 | 104 | n/a | ||||||
Long Term Adjustment Account4 | 64 | — | 44 | ||||||
Other5 | 49 | 43 | n/a | ||||||
293 | 236 | ||||||||
Less: Current portion included in Accounts Payable and Other (Note 13) | 30 | 7 | |||||||
263 | 229 | ||||||||
1 | These regulatory assets are underpinned by non-cash transactions or are recovered without an allowance for return as approved by the regulator. Accordingly, these regulatory assets are not included in rate base and do not yield a return on investment during the recovery period. | ||||||||
2 | Operating and debt-service regulatory assets and liabilities represent the accumulation of cost and revenue variances approved by the regulatory authority for inclusion in determining tolls for the following calendar year. Pre-tax operating results in 2014 would have been $28 million higher (2013 – $76 million higher; 2012 - $50 million lower) had these amounts not been recorded as regulatory assets and liabilities. | ||||||||
3 | These balances represent the regulatory offset to pension plan and other post retirement obligations to the extent the amounts are expected to be collected from customers in future rates. The balances are excluded from the rate base and do not earn a return on investment. Pre-tax operating results in 2014 would have been $46 million lower (2013 – $171 million higher; 2012 - $61 million lower) had these amounts not been recorded as regulatory assets and liabilities. | ||||||||
4 | The LTAA was established in compliance with the NEB 2013 Decision which is comprised of amounts that were deferred and recoverable in future years. The TSA, also established in the NEB 2013 Decision, includes the variances between revenue and costs. A positive balance in the TSA was realized in 2013 and 2014 and, as specified in the NEB 2013 Decision and the NEB 2014 Decision, the TSA, net of incentive earnings, was combined with the LTAA on December 31, 2013 and 2014. | ||||||||
5 | Pre-tax operating results in 2014 would have been $2 million higher (2013 – $2 million higher; 2012 - $66 million higher) had these amounts not been recorded as regulatory assets and liabilities. | ||||||||
6 | Foreign exchange on long-term debt of the NGTL System and Foothills represents the variance resulting from revaluing foreign currency-denominated debt instruments to the current foreign exchange rate from the historical foreign exchange rate at the time of issue. Foreign exchange gains and losses realized when foreign debt matures or is redeemed early are expected to be recovered or refunded through the determination of future tolls. In the absence of RRA, GAAP would have required the inclusion of these unrealized gains or losses in Net Income. | ||||||||
7 | Under the terms of the settlement of ANR’s last rate settlement, ANR will be required to make refunds to its customers, pursuant to a refund plan to be approved by FERC in a future rate proceeding, of those amounts in the postretirement benefit trust fund that have not been used to pay benefits to its employees. This regulatory liability represents the difference between the amount collected in rates and the amount of postretirement benefits expense. ANR can but is not required to file for new rates. Therefore, the settlement/recovery period is not determinable. Pre-tax operating results in 2014 would have been $13 million higher (2013 – $16 million higher; 2012 - $8 million higher) had these amounts not been recorded as regulatory assets and liabilities. | ||||||||
Allowance for Funds Used During Construction | |||||||||
The total amount of AFUDC included in the Consolidated Statement of Income was $95 million in 2014, $19 million in 2013 and $15 million in 2012. |
GOODWILL
GOODWILL | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
GOODWILL | |||||||||
GOODWILL | GOODWILL | ||||||||
The Company has recorded the following Goodwill on its acquisitions in the U.S.: | |||||||||
(millions of Canadian dollars) | Natural Gas | Energy | Total | ||||||
Pipelines | |||||||||
Balance at January 1, 2013 | 2,635 | 823 | 3,458 | ||||||
Foreign exchange rate changes | 181 | 57 | 238 | ||||||
Balance at December 31, 2013 | 2,816 | 880 | 3,696 | ||||||
Foreign exchange rate changes | 258 | 80 | 338 | ||||||
Balance at December 31, 2014 | 3,074 | 960 | 4,034 | ||||||
INTANGIBLE_AND_OTHER_ASSETS
INTANGIBLE AND OTHER ASSETS | 12 Months Ended | |||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||
INTANGIBLES AND OTHER ASSETS | ||||||||||||||||||
INTANGIBLES AND OTHER ASSETS | INTANGIBLE AND OTHER ASSETS | |||||||||||||||||
at December 31 | 2014 | 2013 | ||||||||||||||||
(millions of Canadian dollars) | ||||||||||||||||||
Capital projects under development | 1,286 | 571 | ||||||||||||||||
PPAs | 272 | 324 | ||||||||||||||||
Deferred income tax assets and charges (Note 16) | 180 | 225 | ||||||||||||||||
Loans and advances1 | 167 | 183 | ||||||||||||||||
Fair value of derivative contracts (Note 23) | 93 | 112 | ||||||||||||||||
Employee post-retirement benefits (Note 22) | 14 | 16 | ||||||||||||||||
Other | 692 | 524 | ||||||||||||||||
2,704 | 1,955 | |||||||||||||||||
1 | TransCanada held a note receivable from the seller of Ravenswood of $213 million (US$184 million) and $226 million (US$212 million) as at December 31, 2014 and at December 31, 2013, respectively which bears interest at 6.75 per cent and matures in 2040. The current portion included in Other Current Assets was $46 million (US$40 million) at December 31, 2014, and $43 million (US$40 million) at December 31, 2013. | |||||||||||||||||
The following amounts related to PPAs are included in Intangible and Other Assets: | ||||||||||||||||||
2014 | 2013 | |||||||||||||||||
at December 31 | Cost | Accumulated | Net Book | Cost | Accumulated | Net Book | ||||||||||||
(millions of Canadian dollars) | Amortization | Value | Amortization | Value | ||||||||||||||
Sheerness | 585 | 351 | 234 | 585 | 312 | 273 | ||||||||||||
Sundance A | 225 | 187 | 38 | 225 | 174 | 51 | ||||||||||||
810 | 538 | 272 | 810 | 486 | 324 | |||||||||||||
Amortization expense for these PPAs was $52 million for the year ended December 31, 2014 (2013 and 2012 – $52 million). The expected annual amortization expense for 2015 to 2017 is $52 million, and $39 million for 2018 and 2019. |
NOTES_PAYABLE
NOTES PAYABLE | 12 Months Ended | |||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||
Short-term Debt [Abstract] | ||||||||||||||||||
NOTES PAYABLE | NOTES PAYABLE | |||||||||||||||||
2014 | 2013 | |||||||||||||||||
(millions of Canadian dollars) | Outstanding December 31 | Weighted | Outstanding December 31 | Weighted | ||||||||||||||
Average | Average | |||||||||||||||||
Interest Rate | Interest Rate | |||||||||||||||||
per Annum | per Annum | |||||||||||||||||
at December 31 | at December 31 | |||||||||||||||||
Canadian dollars | 1,540 | 1.2 | % | 751 | 1.2 | % | ||||||||||||
U.S. dollars (2014 - US$800; 2013 – US$1,025) | 927 | 0.7 | % | 1,091 | 0.3 | % | ||||||||||||
2,467 | 1,842 | |||||||||||||||||
Notes Payable consists of commercial paper issued by TransCanada PipeLines Limited (TCPL), TransCanada PipeLine USA Ltd. (TCPL USA), TransCanada American Investments Ltd. (TAIL), and TransCanada Keystone Pipeline, LP (TC Keystone) and drawings on credit facilities. The TC Keystone commercial paper program and facility were terminated in November 2013. The TAIL commercial paper program was initiated in November 2013, replacing the TCPL USA program which was terminated in April 2014. | ||||||||||||||||||
Notes Payable also includes a US$170 million short-term loan, which was issued on October 1, 2014, by TC Pipelines LP. | ||||||||||||||||||
At December 31, 2014, total committed revolving and demand credit facilities of $6.7 billion (2013 - $6.2 billion) were available. When drawn, interest on these lines of credit is charged at prime rates of Canadian and U.S. banks, and at other negotiated financial bases. These unsecured credit facilities included the following: | ||||||||||||||||||
year ended December 31 | ||||||||||||||||||
at December 31, 2014 | 2014 | 2013 | 2012 | |||||||||||||||
Amount | Unused Capacity | Borrower | For | Matures | Cost to maintain | |||||||||||||
(millions of Canadian dollars) | ||||||||||||||||||
$3 billion | $3 billion | TCPL | Committed, syndicated, revolving, extendible TCPL credit facility | Dec-19 | 6 | 4 | 4 | |||||||||||
US$1 billion | US$1 billion | TCPL USA | Committed, syndicated, revolving, extendible TCPL USA credit facility, guaranteed by TCPL | Nov-15 | 2 | 1 | 1 | |||||||||||
US$1 billion | US$1 billion | TAIL | Committed, syndicated, revolving, extendible TAIL credit facility, guaranteed by TCPL | Nov-15 | 1 | — | — | |||||||||||
$1.4 billion | $0.6 billion | TCPL/TCPL USA | Supports the issuance of letters of credit and provides additional liquidity | Demand | — | — | — | |||||||||||
ACCOUNTS_PAYABLE_AND_OTHER
ACCOUNTS PAYABLE AND OTHER | 12 Months Ended | |||||
Dec. 31, 2014 | ||||||
Payables and Accruals [Abstract] | ||||||
ACCOUNTS PAYABLE AND OTHER | ACCOUNTS PAYABLE AND OTHER | |||||
at December 31 | 2014 | 2013 | ||||
(millions of Canadian dollars) | ||||||
Trade payables | 1,624 | 866 | ||||
Fair value of derivative contracts (Note 23) | 749 | 357 | ||||
Dividends payable | 359 | 338 | ||||
Deferred Income Tax Liabilities (Note 16) | 4 | 26 | ||||
Regulatory Liabilities (Note 9) | 30 | 7 | ||||
Liabilities related to assets held for sale (Note 6) | — | 5 | ||||
Other | 130 | 556 | ||||
2,896 | 2,155 | |||||
OTHER_LONGTERM_LIABILITIES
OTHER LONG-TERM LIABILITIES | 12 Months Ended | |||||
Dec. 31, 2014 | ||||||
Deferred Costs, Noncurrent [Abstract] | ||||||
OTHER LONG-TERM LIABILITIES | OTHER LONG-TERM LIABILITIES | |||||
at December 31 | 2014 | 2013 | ||||
(millions of Canadian dollars) | ||||||
Employee post-retirement benefit (Note 22) | 444 | 244 | ||||
Fair value of derivative contracts (Note 23) | 411 | 255 | ||||
Asset retirement obligations | 98 | 83 | ||||
Guarantees (Note 26) | 15 | 18 | ||||
Other | 84 | 56 | ||||
1,052 | 656 | |||||
LONGTERM_DEBT
LONG-TERM DEBT | 12 Months Ended | |||||||||||||
Dec. 31, 2014 | ||||||||||||||
Long-term Debt, Unclassified [Abstract] | ||||||||||||||
LONG-TERM DEBT | LONG-TERM DEBT | |||||||||||||
2014 | 2013 | |||||||||||||
Outstanding loan amounts | Maturity Dates | Outstanding December 31 | Interest | Outstanding December 31 | Interest | |||||||||
(millions of Canadian dollars) | Rate1 | Rate1 | ||||||||||||
TRANSCANADA PIPELINES LIMITED | ||||||||||||||
Debentures | ||||||||||||||
Canadian dollars | 2015 to 2020 | 749 | 10.9 | % | 874 | 10.9 | % | |||||||
U.S. dollars (2014 and 2013 US$400) | 2021 | 464 | 9.9 | % | 425 | 9.9 | % | |||||||
Medium-Term Notes | ||||||||||||||
Canadian dollars | 2016 to 2041 | 4,048 | 5.7 | % | 4,799 | 5.7 | % | |||||||
Senior Unsecured Notes | ||||||||||||||
U.S. dollars (2014 – US$13,526; 2013 – US$12,276) | 2015 to 2043 | 15,655 | 5 | % | 13,027 | 5 | % | |||||||
20,916 | 19,125 | |||||||||||||
NOVA GAS TRANSMISSIONÂ LTD. | ||||||||||||||
Debentures and Notes | ||||||||||||||
Canadian dollars2 | 2016 to 2024 | 325 | 11.5 | % | 378 | 11.5 | % | |||||||
U.S. dollars (2014 and 2013 – US$200) | 2023 | 232 | 7.9 | % | 213 | 7.9 | % | |||||||
Medium-Term Notes | ||||||||||||||
Canadian dollars | 2025 to 2030 | 504 | 7.4 | % | 504 | 7.4 | % | |||||||
U.S. dollars (2014 and 2013 – US$33) | 2026 | 38 | 7.5 | % | 34 | 7.5 | % | |||||||
1,099 | 1,129 | |||||||||||||
ANR PIPELINE COMPANY | ||||||||||||||
Senior Unsecured Notes | ||||||||||||||
U.S. dollars (2014 and 2013 – US$432) | 2021 to 2025 | 502 | 8.9 | % | 459 | 8.9 | % | |||||||
GAS TRANSMISSION NORTHWEST CORPORATION | ||||||||||||||
Senior Unsecured Notes | ||||||||||||||
U.S. dollars (2014 and 2013 – US$325) | 2015 to 2035 | 377 | 5.5 | % | 346 | 5.5 | % | |||||||
TC PIPELINES, LP | ||||||||||||||
Unsecured Loan | ||||||||||||||
U.S. dollars (2014 – US$330; 2013 – US$380) | 2017 | 383 | 1.4 | % | 404 | 1.4 | % | |||||||
Unsecured Term Loan Facility | ||||||||||||||
U.S. dollars (2014 – US$500; 2013 – US$500) | 2015 to 2018 | 580 | 1.4 | % | 532 | 1.4 | % | |||||||
Senior Unsecured Notes | ||||||||||||||
U.S. dollars (2014 and 2013 – US$350) | 2021 | 405 | 4.7 | % | 372 | 4.7 | % | |||||||
1,368 | 1,308 | |||||||||||||
GREAT LAKES GAS TRANSMISSION | ||||||||||||||
LIMITED PARTNERSHIP | ||||||||||||||
Senior Unsecured Notes | ||||||||||||||
U.S. dollars (2014 – US$316; 2013 – US$335) | 2018 to 2030 | 367 | 7.8 | % | 356 | 7.8 | % | |||||||
TUSCARORA GAS TRANSMISSION COMPANY | ||||||||||||||
Senior Secured Notes | ||||||||||||||
U.S. dollars (2014 – US$20; 2013 – US$24) | 2017 | 23 | 4 | % | 25 | 4 | % | |||||||
PORTLAND NATURAL GAS TRANSMISSION SYSTEM | ||||||||||||||
Senior Secured Notes3 | ||||||||||||||
U.S. dollars (2014 – US$90; 2013 – US$110) | 2018 | 105 | 6.1 | % | 117 | 6.1 | % | |||||||
24,757 | 22,865 | |||||||||||||
Less: Current Portion of Long-Term Debt | 1,797 | 973 | ||||||||||||
22,960 | 21,892 | |||||||||||||
1 | Interest rates are the effective interest rates except for those pertaining to Long-Term Debt issued for the Company's Canadian regulated natural gas operations, in which case the weighted average interest rate is presented as approved by the regulators. Weighted average and effective interest rates are stated as at the respective outstanding dates. | |||||||||||||
2 | Debentures issued by NGTL in the amount of $225 million have retraction provisions that entitle the holders to require redemption of up to eight per cent of the then outstanding principal plus accrued and unpaid interest on specified repayment dates. No redemptions were made in 2014 or 2013. | |||||||||||||
3 | Secured by shipper transportation contracts, existing and new guarantees, letters of credit and collateral requirements. | |||||||||||||
Principal Repayments | ||||||||||||||
Principal repayments on the Long-Term Debt of the Company for the next five years are approximately as follows: | ||||||||||||||
(millions of Canadian dollars) | 2015 | 2016 | 2017 | 2018 | 2019 | |||||||||
Principal repayments on Long-Term Debt | 1,797 | 2,225 | 846 | 1,766 | 1,007 | |||||||||
Long-Term Debt Issued | ||||||||||||||
The Company issued Long-Term Debt over the last three years ended December 31 as follows: | ||||||||||||||
(millions of Canadian dollars, unless otherwise noted) | ||||||||||||||
Company | Issue date | Type | Maturity date | Amount | Interest Rate | |||||||||
TRANSCANADA PIPELINES LIMITED | ||||||||||||||
Feb-14 | Senior Unsecured Notes | Mar-34 | US 1,250 | 4.63 | % | |||||||||
Oct-13 | Senior Unsecured Notes | Oct-23 | US 625 | 3.75 | % | |||||||||
Oct-13 | Senior Unsecured Notes | Oct-43 | US 625 | 5 | % | |||||||||
Jul-13 | Senior Unsecured Notes | Jun-16 | US 500 | Floating | ||||||||||
Jul-13 | Medium-Term Notes | Jul-23 | 450 | 3.69 | % | |||||||||
Jul-13 | Medium-Term Notes | Nov-41 | 300 | 4.55 | % | |||||||||
Jan-13 | Senior Unsecured Notes | Jan-16 | US 750 | 0.75 | % | |||||||||
Aug-12 | Senior Unsecured Notes | Aug-22 | US 1,000 | 2.5 | % | |||||||||
Mar-12 | Senior Unsecured Notes | Mar-15 | US 500 | 0.88 | % | |||||||||
TC PIPELINES, LP | ||||||||||||||
Jul-13 | Unsecured Term Loan Facility | Jul-18 | US 500 | Floating | ||||||||||
Long-Term Debt Retired | ||||||||||||||
The Company retired Long-Term Debt over the last three years ended December 31 as follows: | ||||||||||||||
(millions of Canadian dollars, unless otherwise noted) | ||||||||||||||
Company | Retirement date | Type | Amount | Interest Rate | ||||||||||
TRANSCANADA PIPELINES LIMITED | ||||||||||||||
Jun-14 | Debentures | 125 | 11.1 | % | ||||||||||
Feb-14 | Medium-Term Notes | 300 | 5.05 | % | ||||||||||
Jan-14 | Medium-Term Notes | 450 | 5.65 | % | ||||||||||
Aug-13 | Senior Unsecured Notes | US 500 | 5.05 | % | ||||||||||
Jun-13 | Senior Unsecured Notes | US 350 | 4 | % | ||||||||||
May-12 | Senior Unsecured Notes | US 200 | 8.63 | % | ||||||||||
NOVA GAS TRANSMISSION LTD. | ||||||||||||||
Jun-14 | Debentures | 53 | 11.2 | % | ||||||||||
Dec-12 | Debentures | US 175 | 8.5 | % | ||||||||||
Interest Expense | ||||||||||||||
year ended December 31 | 2014 | 2013 | 2012 | |||||||||||
(millions of Canadian dollars) | ||||||||||||||
Interest on Long-Term Debt | 1,317 | 1,216 | 1,190 | |||||||||||
Interest on Junior Subordinated Notes (Note 17) | 70 | 65 | 63 | |||||||||||
Interest on short-term debt | 15 | 12 | 16 | |||||||||||
Capitalized interest | (259 | ) | (287 | ) | (300 | ) | ||||||||
Amortization and other financial charges1 | 55 | (21 | ) | 7 | ||||||||||
1,198 | 985 | 976 | ||||||||||||
1 | Amortization and other financial charges includes amortization of transaction costs and debt discounts calculated using the effective interest method and changes in the fair value of derivatives used to manage the Company's exposure to changes in interest rates. | |||||||||||||
The Company made interest payments of $1,123 million in 2014 (2013 – $985 million; 2012 – $966 million) on Long-Term Debt and Junior Subordinated Notes, net of interest capitalized. |
INCOME_TAXES
INCOME TAXES | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Income Tax Disclosure [Abstract] | |||||||||
INCOME TAXES | INCOME TAXES | ||||||||
Provision for Income Taxes | |||||||||
year ended December 31 | 2014 | 2013 | 2012 | ||||||
(millions of Canadian dollars) | |||||||||
Current | |||||||||
Canada | 103 | 27 | 167 | ||||||
Foreign | 42 | 16 | 14 | ||||||
145 | 43 | 181 | |||||||
Deferred | |||||||||
Canada | 309 | 245 | 69 | ||||||
Foreign | 377 | 323 | 216 | ||||||
686 | 568 | 285 | |||||||
Income Tax Expense | 831 | 611 | 466 | ||||||
Geographic Components of Income | |||||||||
year ended December 31 | 2014 | 2013 | 2012 | ||||||
(millions of Canadian dollars) | |||||||||
Canada | 1,146 | 1,224 | 842 | ||||||
Foreign | 1,678 | 1,298 | 1,096 | ||||||
Income before Income Taxes | 2,824 | 2,522 | 1,938 | ||||||
Reconciliation of Income Tax Expense | |||||||||
year ended December 31 | 2014 | 2013 | 2012 | ||||||
(millions of Canadian dollars) | |||||||||
Income before Income Taxes | 2,824 | 2,522 | 1,938 | ||||||
Federal and provincial statutory tax rate | 25 | % | 25 | % | 25 | % | |||
Expected income tax expense | 706 | 631 | 485 | ||||||
Income tax differential related to regulated operations | 129 | (13 | ) | 41 | |||||
Higher/(lower) effective foreign tax rates | 25 | 33 | (12 | ) | |||||
Income from equity investments and non-controlling interests | (38 | ) | (28 | ) | (27 | ) | |||
Tax legislation change | — | (25 | ) | — | |||||
Other | 9 | 13 | (21 | ) | |||||
Actual Income Tax Expense | 831 | 611 | 466 | ||||||
Deferred Income Tax Assets and Liabilities | |||||||||
at December 31 | 2014 | 2013 | |||||||
(millions of Canadian dollars) | |||||||||
Deferred Income Tax Assets | |||||||||
Operating loss carryforwards | 1,266 | 826 | |||||||
Deferred amounts | 215 | 223 | |||||||
Unrealized foreign exchange losses on long-term debt | 140 | — | |||||||
Financial Instruments | 104 | — | |||||||
Other | 248 | 128 | |||||||
1,973 | 1,177 | ||||||||
Less: Valuation allowance1 | 125 | — | |||||||
1,848 | 1,177 | ||||||||
Deferred Income Tax Liabilities | |||||||||
Difference in accounting and tax bases of plant, property and equipment and PPAs | 5,548 | 4,245 | |||||||
Equity investments | 648 | 682 | |||||||
Taxes on future revenue requirement | 253 | 291 | |||||||
Unrealized foreign exchange gains on long-term debt | — | 35 | |||||||
Other | 71 | 170 | |||||||
6,520 | 5,423 | ||||||||
Net Deferred Income Tax Liabilities | 4,672 | 4,246 | |||||||
1 | A valuation allowance was recorded in 2014 as the Company believes that it is more likely than not that the tax benefit related to the unrealized foreign exchange losses on the long term debt will not be realized in the future. | ||||||||
The above deferred tax amounts have been classified in the Consolidated Balance Sheet as follows: | |||||||||
at December 31 | 2014 | 2013 | |||||||
(millions of Canadian dollars) | |||||||||
Deferred Income Tax Assets | |||||||||
Other Current Assets (Note 5) | 427 | 119 | |||||||
Intangible and Other Assets (Note 11) | 180 | 225 | |||||||
607 | 344 | ||||||||
Deferred Income Tax Liabilities | |||||||||
Accounts Payable and Other (Note 13) | 4 | 26 | |||||||
Deferred Income Tax Liabilities | 5,275 | 4,564 | |||||||
5,279 | 4,590 | ||||||||
Net Deferred Income Tax Liabilities | 4,672 | 4,246 | |||||||
At December 31, 2014, the Company has recognized the benefit of unused non-capital loss carryforwards of $1,131 million (2013 – $1,026 million) for federal and provincial purposes in Canada, which expire from 2015 to 2034. | |||||||||
At December 31, 2014, the Company has recognized the benefit of unused net operating loss carryforwards of US$2,267 million (2013 – US$1,432 million) for federal purposes in the U.S., which expire from 2028 to 2034. | |||||||||
Unremitted Earnings of Foreign Investments | |||||||||
Income taxes have not been provided on the unremitted earnings of foreign investments that the Company does not intend to repatriate in the foreseeable future. Deferred income tax liabilities would have increased at December 31, 2014 by approximately $236 million (2013 – $182 million) if there had been a provision for these taxes. | |||||||||
Income Tax Payments | |||||||||
Income tax payments of $109 million, net of refunds, were made in 2014 (2013 – payments, net of refunds, of $202 million; 2012 – refunds, net of payments made, of $190 million). | |||||||||
Reconciliation of Unrecognized Tax Benefit | |||||||||
Below is the reconciliation of the annual changes in the total unrecognized tax benefit: | |||||||||
at December 31 | 2014 | 2013 | 2012 | ||||||
(millions of Canadian dollars) | |||||||||
Unrecognized tax benefits at beginning of year | 23 | 49 | 52 | ||||||
Gross increases – tax positions in prior years | 3 | 3 | 2 | ||||||
Gross decreases – tax positions in prior years | (8 | ) | (28 | ) | (6 | ) | |||
Gross increases – tax positions in current year | 1 | 2 | 9 | ||||||
Lapses of statute of limitations | (1 | ) | (3 | ) | (8 | ) | |||
Unrecognized tax benefits at end of year | 18 | 23 | 49 | ||||||
TransCanada recognized a favourable income tax adjustment of approximately $25 million due to the enactment of certain Canadian Federal tax legislation in June 2013. | |||||||||
Subject to the results of audit examinations by taxing authorities and other legislative amendments, TransCanada does not anticipate further adjustments to the unrecognized tax benefits during the next twelve months that would have a material impact on its financial statements. | |||||||||
TransCanada and its subsidiaries are subject to either Canadian federal and provincial income tax, U.S. federal, state and local income tax or the relevant income tax in other international jurisdictions. The Company has substantially concluded all Canadian federal and provincial income tax matters for the years through 2009. Substantially all material U.S. federal income tax matters have been concluded for years through 2007 and U.S. state and local income tax matters through 2007. | |||||||||
TransCanada's practice is to recognize interest and penalties related to income tax uncertainties in Income Tax Expense. Income Tax Expense for the year ended December 31, 2014 reflects a $1 million reversal of Interest Expense and nil for penalties (2013 – $1 million increase of Interest Expense and nil for penalties; 2012 – $2 million reversal for Interest Expense and nil for penalties). At December 31, 2014, the Company had $5 million accrued for Interest Expense and nil accrued for penalties (December 31, 2013 – $6 million accrued for Interest Expense and nil accrued for penalties). |
JUNIOR_SUBORDINATED_NOTES
JUNIOR SUBORDINATED NOTES | 12 Months Ended | |||||||||||||
Dec. 31, 2014 | ||||||||||||||
Junior Subordinated Notes [Abstract] | ||||||||||||||
JUNIOR SUBORDINATED NOTES | JUNIOR SUBORDINATED NOTES | |||||||||||||
2014 | 2013 | |||||||||||||
Outstanding loan amount | Maturity | Outstanding December 31 | Effective | Outstanding December 31 | Effective | |||||||||
(millions of Canadian dollars) | Date | Interest Rate | Interest Rate | |||||||||||
TRANSCANADA PIPELINES LIMITED | ||||||||||||||
U.S. dollars (2014 and 2013 – US$1,000) | 2067 | 1,160 | 6.5 | % | 1,063 | 6.5 | % | |||||||
Junior Subordinated Notes of US$1.0 billion mature in 2067 and bear interest at 6.35 per cent per annum until May 15, 2017, when interest will convert to a floating rate that is reset quarterly to the three-month London Interbank Offered Rate plus 221 basis points. The Company has the option to defer payment of interest for periods of up to 10 years without giving rise to a default or permitting acceleration of payment under the terms of the Junior Subordinated Notes, however, the Company would be prohibited from paying dividends during any such deferral period. The Junior Subordinated Notes are subordinated in right of payment to existing and future senior indebtedness and are effectively subordinated to all indebtedness and other obligations of TCPL. The Junior Subordinated Notes are callable at the Company's option at any time on or after May 15, 2017 at 100 per cent of the principal amount of the Junior Subordinated Notes plus accrued and unpaid interest to the date of redemption. The Junior Subordinated Notes are callable earlier, in whole or in part, upon the occurrence of certain events and at the Company's option at an amount equal to the greater of 100 per cent of the principal amount of the Junior Subordinated Notes plus accrued and unpaid interest to the date of redemption and an amount determined by a specified formula in accordance with the terms of the Junior Subordinated Notes. |
NONCONTROLLING_INTERESTS
NON-CONTROLLING INTERESTS | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Noncontrolling Interest [Abstract] | |||||||||
NON-CONTROLLING INTERESTS | NON-CONTROLLING INTERESTS | ||||||||
The Company's Non-Controlling Interests included in the Consolidated Balance Sheet were as follows: | |||||||||
at December 31 | 2014 | 2013 | |||||||
(millions of Canadian dollars) | |||||||||
Non-controlling interest in TC PipeLines, LP | 1,479 | 1,323 | |||||||
Non-controlling interest in Portland | 104 | 94 | |||||||
Preferred shares of TCPL | — | 194 | |||||||
1,583 | 1,611 | ||||||||
The Company's Non-Controlling Interests included in the Consolidated Statement of Income were as follows: | |||||||||
year ended December 31 | 2014 | 2013 | 2012 | ||||||
(millions of Canadian dollars) | |||||||||
Non-controlling interest in TC PipeLines, LP | 136 | 93 | 91 | ||||||
Non-controlling interest in Portland | 15 | 12 | 5 | ||||||
Preferred shares of TCPL | 2 | 20 | 22 | ||||||
153 | 125 | 118 | |||||||
During 2014, the non-controlling interest in TC PipeLines, LP increased from 71.1 per cent to 71.7 per cent due to the issuance of common units in TC PipeLines, LP to non-controlling interests. The non-controlling interest in TC PipeLines, LP from May 2013 to August 2014 was 71.1 per cent and from May 2011 to May 2013 was 66.7 per cent. | |||||||||
The non-controlling interest in Portland as at December 31, 2014 represented the 38.3 per cent interest not owned by TransCanada (2013 and 2012 – 38.3 per cent). | |||||||||
On October 15, 2013, TCPL redeemed all of the four million outstanding 5.60 per cent cumulative redeemable first preferred shares Series U at a price of $50 per share plus $0.5907 representing accrued and unpaid dividends to the redemption date. | |||||||||
On March 5, 2014, TCPL redeemed all of the four million outstanding 5.60 per cent cumulative redeemable first preferred shares Series Y at a price of $50 per share plus $0.2455 representing accrued and unpaid dividends to the redemption date. | |||||||||
In 2014, TransCanada received fees of $3 million from TC PipeLines, LP (2013 and 2012 – $3 million) and $8 million from Portland (2013 and 2012 – $7 million) for services provided. |
COMMON_SHARES
COMMON SHARES | 12 Months Ended | |||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||
Common Stock, Number of Shares, Par Value and Other Disclosures [Abstract] | ||||||||||||||||||
COMMON SHARES | COMMON SHARES | |||||||||||||||||
Number of | Amount | |||||||||||||||||
Shares | ||||||||||||||||||
(thousands) | (millions of Canadian dollars) | |||||||||||||||||
Outstanding at January 1, 2012 | 703,861 | 12,011 | ||||||||||||||||
Exercise of options | 1,600 | 58 | ||||||||||||||||
Outstanding at December 31, 2012 | 705,461 | 12,069 | ||||||||||||||||
Exercise of options | 1,980 | 80 | ||||||||||||||||
Outstanding at December 31, 2013 | 707,441 | 12,149 | ||||||||||||||||
Exercise of options | 1,221 | 53 | ||||||||||||||||
Outstanding at December 31, 2014 | 708,662 | 12,202 | ||||||||||||||||
Common Shares Issued and Outstanding | ||||||||||||||||||
The Company is authorized to issue an unlimited number of common shares without par value. | ||||||||||||||||||
Basic and Diluted Net Income per Share | ||||||||||||||||||
Net income per share is calculated by dividing Net Income Attributable to Common Shares by the weighted average number of common shares outstanding. The higher weighted average number of shares for the diluted earnings per share calculation is due to options exercisable under TransCanada's Stock Option Plan. | ||||||||||||||||||
Weighted Average Common Shares Outstanding | 2014 | 2013 | 2012 | |||||||||||||||
(millions) | ||||||||||||||||||
  Basic | 708 | 706.7 | 704.6 | |||||||||||||||
  Diluted | 709.6 | 707.7 | 705.7 | |||||||||||||||
Stock Options | ||||||||||||||||||
Number of | Weighted | Options | ||||||||||||||||
Options | Average | Exercisable | ||||||||||||||||
Exercise | ||||||||||||||||||
Prices | ||||||||||||||||||
(thousands) | (thousands) | |||||||||||||||||
Outstanding at January 1, 2012 | 7,100 | $35.44 | 5,165 | |||||||||||||||
Granted | 1,978 | $42.03 | ||||||||||||||||
Exercised | (1,600 | ) | $33.13 | |||||||||||||||
Forfeited | (44 | ) | $36.55 | |||||||||||||||
Outstanding at December 31, 2012 | 7,434 | $37.69 | 4,588 | |||||||||||||||
Granted | 1,939 | $47.09 | ||||||||||||||||
Exercised | (1,980 | ) | $36.12 | |||||||||||||||
Outstanding at December 31, 2013 | 7,393 | $40.57 | 3,954 | |||||||||||||||
Granted | 2,292 | $49.03 | ||||||||||||||||
Exercised | (1,221 | ) | $43.00 | |||||||||||||||
Outstanding at December 31, 2014 | 8,464 | $43.17 | 4,902 | |||||||||||||||
Stock options outstanding at December 31, 2014 were as follows: | ||||||||||||||||||
Options Outstanding | Options Exercisable | |||||||||||||||||
Range of | Number of | Weighted | Weighted | Number of | Weighted | Weighted | ||||||||||||
Exercise Prices | Options | Average | Average | Options | Average | Average | ||||||||||||
Exercise | Remaining | Exercise | Remaining | |||||||||||||||
Price | Contractual | Price | Contractual | |||||||||||||||
Life | Life | |||||||||||||||||
(thousands) | (years) | (thousands) | (years) | |||||||||||||||
$30.10 to $36.26 | 1,410 | $33.85 | 1.7 | 1,410 | $33.85 | 1.7 | ||||||||||||
$36.90 to $41.65 | 1,101 | $38.24 | 3.1 | 1,101 | $38.24 | 3.1 | ||||||||||||
$41.95 to $45.29 | 1,819 | $42.04 | 4.2 | 1,464 | $42.02 | 4.2 | ||||||||||||
$47.09 | 1,842 | $47.09 | 5.1 | 847 | $47.09 | 5.1 | ||||||||||||
$49.03 | 2,292 | $49.03 | 6.2 | 80 | $49.03 | 6.2 | ||||||||||||
8,464 | $43.17 | 4.3 | 4,902 | $39.81 | 3.3 | |||||||||||||
An additional 8.2 million common shares were reserved for future issuance under TransCanada's Stock Option Plan at December 31, 2014. The weighted average fair value of options granted to purchase common shares under the Company's Stock Option Plan was determined to be $5.54 for the year ended December 31, 2014 (2013 – $5.74; 2012 – $5.08). The contractual life of options granted is seven years. Options may be exercised at a price determined at the time the option is awarded and vest 33.3 per cent on the anniversary date in each of the three years following the award. Forfeiture of stock options results from their expiration and, if not previously vested, upon resignation or termination of the option holder's employment. | ||||||||||||||||||
The Company used a binomial model for determining the fair value of options granted applying the following weighted average assumptions: | ||||||||||||||||||
year ended December 31 | 2014 | 2013 | 2012 | |||||||||||||||
Expected life (years) | 6 | 6 | 5.9 | |||||||||||||||
Interest rate | 1.8 | % | 1.7 | % | 1.6 | % | ||||||||||||
Volatility1 | 17 | % | 18 | % | 19 | % | ||||||||||||
Dividend yield | 3.8 | % | 3.7 | % | 4.2 | % | ||||||||||||
Forfeiture rate | 5 | % | 15 | % | 15 | % | ||||||||||||
1 | Volatility is derived based on the average of both the historical and implied volatility of the Company's common shares. | |||||||||||||||||
The amount expensed for stock options, with a corresponding increase in Additional Paid-In Capital, was $9 million in 2014 (2013 - $6 million; 2012 – $5 million). | ||||||||||||||||||
The following table summarizes additional stock option information: | ||||||||||||||||||
year ended December 31 | 2014 | 2013 | 2012 | |||||||||||||||
(millions of Canadian dollars, unless noted otherwise) | ||||||||||||||||||
Total intrinsic value of options exercised | $68 | $25 | $18 | |||||||||||||||
Fair value of options that have vested | $113 | $65 | $49 | |||||||||||||||
Total options vested | 2.0 million | 1.3 million | 1.0 million | |||||||||||||||
As at December 31, 2014, the aggregate intrinsic value of the total options exercisable was $85 million and the total intrinsic value of options outstanding was $118 million. | ||||||||||||||||||
Shareholder Rights Plan | ||||||||||||||||||
TransCanada's Shareholder Rights Plan is designed to provide the Board with sufficient time to explore and develop alternatives for maximizing shareholder value in the event of a takeover offer for the Company and to encourage the fair treatment of shareholders in connection with any such offer. Attached to each common share is one right that, under certain circumstances, entitles certain holders to purchase two common shares of the Company for the then current market price of one. |
PREFERRED_SHARES
PREFERRED SHARES | 12 Months Ended | |||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||
Preferred Stock, Number of Shares, Par Value and Other Disclosures [Abstract] | ||||||||||||||||||||||||
PREFERRED SHARES | PREFERRED SHARES | |||||||||||||||||||||||
at December 31 | Number of | Current Yield | Annual Dividend Per Share1 | Redemption Price Per Share2 | Redemption and Conversion Option Date 2,3 | Right to Convert Into 3,4 | 2014 | 2013 | ||||||||||||||||
Shares | ||||||||||||||||||||||||
Authorized and | ||||||||||||||||||||||||
Outstanding | ||||||||||||||||||||||||
Cumulative First Preferred Shares5 | (thousands) | (millions of | (millions of | |||||||||||||||||||||
Canadian dollars)6 | Canadian dollars)6 | |||||||||||||||||||||||
Series 1 | 9,498 | 3.27 | % | $0.82 | $25.00 | 31-Dec-19 | Series 2 | 233 | 539 | |||||||||||||||
Series 2 | 12,502 | Floating7 | Floating | $25.50 | 31-Dec-19 | Series 1 | 306 | — | ||||||||||||||||
Series 3 | 14,000 | 4 | % | $1.00 | $25.00 | 30-Jun-15 | Series 4 | 343 | 343 | |||||||||||||||
Series 5 | 14,000 | 4.4 | % | $1.10 | $25.00 | 30-Jan-16 | Series 6 | 342 | 342 | |||||||||||||||
Series 7 | 24,000 | 4 | % | $1.00 | $25.00 | 30-Apr-19 | Series 8 | 589 | 589 | |||||||||||||||
Series 9 | 18,000 | 4.25 | % | $1.06 | $25.00 | 30-Oct-19 | Series 10 | 442 | — | |||||||||||||||
2,255 | 1,813 | |||||||||||||||||||||||
1 | The holder is entitled to receive a fixed, cumulative, quarterly preferential dividend, as declared by the Board with the exception of Series 2 preferred shares. The holders of Series 2 preferred shares are entitled to receive quarterly, floating rate, cumulative, preferential dividends as declared by the Board. | |||||||||||||||||||||||
2 | Series 2 preferred shares are redeemable by TransCanada at any time for $25.50 per share plus all accrued and unpaid dividends on such redemption date, unless redeemed on a designated redemption option date, or any fifth anniversary thereafter, in which case they are redeemable at $25.00 per share plus all accrued and unpaid dividends. For all other series of preferred shares, TransCanada may, at its option, redeem all or a portion of the outstanding shares for the redemption price per share, plus all accrued and unpaid dividends on the redemption option date and on every fifth anniversary thereafter. | |||||||||||||||||||||||
3 | The holder will have the right, subject to certain conditions, to convert their first preferred shares of a specified series into first preferred shares of another specified series on the conversion option date and every fifth anniversary thereafter. | |||||||||||||||||||||||
4 | With the exception of Series 1 preferred shares, if converted each series will be entitled to receive floating rate, cumulative, quarterly, preferential dividends per share at an annualized rate equal to the 90-day Government of Canada Treasury bill rate + 1.92 per cent (Series 2), 1.28 per cent (Series 4), 1.54 per cent (Series 6), 2.38 per cent (Series 8), and 2.35 per cent (Series 10). Holders of Series 1 preferred shares will receive fixed, cumulative, quarterly preferential dividends if converted. | |||||||||||||||||||||||
5 | With the exception of Series 2 preferred shares, and where the redemption and/or conversion option is not exercised on a designated conversion date, the dividend rate on the fixed rate, cumulative, quarterly, preferential dividends will reset on the redemption and conversion option date and every fifth year thereafter to an annualized rate equal to the then five-year Government of Canada bond yield + 1.92 per cent (Series 1), 1.28 per cent (Series 3), 1.54 per cent (Series 5), 2.38 per cent (Series 7), and 2.35 per cent (Series 9). Holders of Series 2 preferred shares will receive floating rate, cumulative, quarterly, preferential dividends. | |||||||||||||||||||||||
6 | Net of underwriting commissions and deferred income taxes. | |||||||||||||||||||||||
7 | Commencing December 31, 2014, the floating quarterly dividend rate for the Series 2 preferred shares is 2.82 per cent and will reset each quarter going forward. | |||||||||||||||||||||||
In January 2014, TransCanada completed a public offering of 18 million Series 9 cumulative redeemable first preferred shares at a price of $25.00 per share, resulting in gross proceeds of $450 million. | ||||||||||||||||||||||||
At December 31, 2014, holders of 12,501,577 Series 1 preferred shares exercised their option to convert to Series 2 preferred shares and receive floating rate, cumulative, quarterly, preferential dividends at a rate equal to the then 90-day Government of Canada Treasury bill rate + 1.92 per cent until December 31, 2019. The floating quarterly dividend rate for the Series 2 preferred shares for the first quarterly floating rate period (being the period from December 31, 2014 to but excluding March 31, 2015) is 2.82 per cent per annum and will reset every quarter. The 9,498,423 Series 1 preferred shares will pay on a quarterly basis, for the five-year period beginning on December 31, 2014 a fixed quarterly dividend based on an annual fixed dividend rate of 3.27 per cent . |
OTHER_COMPREHENSIVE_INCOME_AND
OTHER COMPREHENSIVE INCOME AND ACCUMULATED OTHER COMPREHENSIVE LOSS | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
Equity [Abstract] | ||||||||||||||||
OTHER COMPREHENSIVE INCOME AND ACCUMMULATED OTHER COMPREHENSIVE LOSS | OTHER COMPREHENSIVE INCOME AND ACCUMULATED OTHER COMPREHENSIVE LOSS | |||||||||||||||
Components of OCI including Non-Controlling Interests and the related tax effects are as follows: | ||||||||||||||||
year ended December 31, 2014 | Before tax amount | Income tax recovery/(expense) | Net of tax amount | |||||||||||||
(millions of Canadian dollars) | ||||||||||||||||
Foreign currency translation gains on net investments in foreign operations | 462 | 55 | 517 | |||||||||||||
Change in fair value of net investment hedges | (373 | ) | 97 | (276 | ) | |||||||||||
Change in fair value of cash flow hedges | (118 | ) | 49 | (69 | ) | |||||||||||
Reclassification to Net Income of gains and losses on cash flow hedges | (95 | ) | 40 | (55 | ) | |||||||||||
Unrealized actuarial gains and losses on pension and other post-retirement benefit plans | (146 | ) | 44 | (102 | ) | |||||||||||
Reclassification to Net Income of actuarial gains and losses and prior service costs on pension and other post-retirement benefit plans | 25 | (7 | ) | 18 | ||||||||||||
Other comprehensive loss on Equity Investments | (272 | ) | 68 | (204 | ) | |||||||||||
Other comprehensive loss | (517 | ) | 346 | (171 | ) | |||||||||||
year ended December 31, 2013 | Before tax amount | Income tax | Net of tax amount | |||||||||||||
(millions of Canadian dollars) | recovery/(expense) | |||||||||||||||
Foreign currency translation gains on net investments in foreign operations | 269 | 114 | 383 | |||||||||||||
Change in fair value of net investment hedges | (323 | ) | 84 | (239 | ) | |||||||||||
Change in fair value of cash flow hedges | 121 | (50 | ) | 71 | ||||||||||||
Reclassification to Net Income of gains and losses on cash flow hedges | 60 | (19 | ) | 41 | ||||||||||||
Unrealized actuarial gains and losses on pension and other post-retirement benefit plans | 96 | (29 | ) | 67 | ||||||||||||
Reclassification to Net Income of actuarial gains and losses and prior service costs on pension and other post-retirement benefit plans | 34 | (11 | ) | 23 | ||||||||||||
Other comprehensive income on Equity Investments | 313 | (79 | ) | 234 | ||||||||||||
Other comprehensive income | 570 | 10 | 580 | |||||||||||||
year ended December 31, 2012 | Before tax amount | Income tax recovery/(expense) | Net of tax amount | |||||||||||||
(millions of Canadian dollars) | ||||||||||||||||
Foreign currency translation losses on net investments in foreign operations | (97 | ) | (32 | ) | (129 | ) | ||||||||||
Change in fair value of net investment hedges | 59 | (15 | ) | 44 | ||||||||||||
Change in fair value of cash flow hedges | 61 | (13 | ) | 48 | ||||||||||||
Reclassification to Net Income of gains and losses on cash flow hedges | 219 | (81 | ) | 138 | ||||||||||||
Unrealized actuarial gains and losses on pension and other post-retirement benefit plans | (104 | ) | 31 | (73 | ) | |||||||||||
Reclassification to Net Income of actuarial gains and losses and prior service costs on pension and other post-retirement benefit plans | 22 | — | 22 | |||||||||||||
Other comprehensive loss on Equity Investments | (93 | ) | 23 | (70 | ) | |||||||||||
Other comprehensive income/(loss) | 67 | (87 | ) | (20 | ) | |||||||||||
The changes in AOCI by component is as follows: | ||||||||||||||||
Currency | Cash flow | Pension and OPEB plan adjustments | Equity Investments | Total1 | ||||||||||||
translation | hedges | |||||||||||||||
adjustments | ||||||||||||||||
AOCI Balance at January 1, 2012 | (643 | ) | (302 | ) | (236 | ) | (268 | ) | (1,449 | ) | ||||||
Other comprehensive (loss)/income before reclassifications2 | (64 | ) | 48 | (73 | ) | (67 | ) | (156 | ) | |||||||
Amounts reclassified from Accumulated Other Comprehensive Loss | — | 138 | 22 | (3 | ) | 157 | ||||||||||
Net current period other comprehensive (loss)/income | (64 | ) | 186 | (51 | ) | (70 | ) | 1 | ||||||||
AOCI Balance at December 31, 2012 | (707 | ) | (116 | ) | (287 | ) | (338 | ) | (1,448 | ) | ||||||
Other comprehensive income before reclassifications2 | 78 | 71 | 67 | 219 | 435 | |||||||||||
Amounts reclassified from Accumulated Other Comprehensive Loss | — | 41 | 23 | 15 | 79 | |||||||||||
Net current period other comprehensive income | 78 | 112 | 90 | 234 | 514 | |||||||||||
AOCI Balance at December 31, 2013 | (629 | ) | (4 | ) | (197 | ) | (104 | ) | (934 | ) | ||||||
Other comprehensive income/(loss) before reclassifications2 | 111 | (69 | ) | (102 | ) | (206 | ) | (266 | ) | |||||||
Amounts reclassified from Accumulated Other Comprehensive Loss3 | — | (55 | ) | 18 | 2 | (35 | ) | |||||||||
Net current period other comprehensive income/(loss) | 111 | (124 | ) | (84 | ) | (204 | ) | (301 | ) | |||||||
AOCI Balance at December 31, 2014 | (518 | ) | (128 | ) | (281 | ) | (308 | ) | (1,235 | ) | ||||||
1 | All amounts are net of tax. Amounts in parentheses indicate losses recorded to OCI. | |||||||||||||||
2 | OCI before reclassifications on currency translation adjustments is net of non-controlling interest gains of $130 million in 2014 (2013 - $66 million gains; 2012 - $21 million losses). | |||||||||||||||
3 | Losses related to cash flow hedges reported in AOCI and expected to be reclassified to net income in the next 12 months are estimated to be $95 million ($55 million, net of tax) at December 31, 2014. These estimates assume constant commodity prices, interest rates and foreign exchange rates over time, however, the amounts reclassified will vary based on the actual value of these factors at the date of settlement. | |||||||||||||||
Details about reclassifications out of AOCI into the Consolidated Statement of Income are as follows: | ||||||||||||||||
Amounts reclassified from | Affected line item | |||||||||||||||
accumulated other | in the consolidated | |||||||||||||||
comprehensive loss1 | statement of | |||||||||||||||
year ended December 31 | 2014 | 2013 | 2012 | income | ||||||||||||
(millions of Canadian dollars) | ||||||||||||||||
Cash flow hedges | ||||||||||||||||
     Power and Natural Gas | 111 | (44 | ) | 201 | Revenue (Energy) | |||||||||||
     Interest | (16 | ) | (16 | ) | 18 | Interest Expense | ||||||||||
95 | (60 | ) | 219 | Total before tax | ||||||||||||
(40 | ) | 19 | (81 | ) | Income Tax Expense | |||||||||||
55 | (41 | ) | 138 | Net of tax | ||||||||||||
Pension and OPEB plan adjustments | ||||||||||||||||
     Amortization of actuarial loss and past service cost2 | (25 | ) | (34 | ) | (22 | ) | 2 | |||||||||
7 | 11 | — | Income Tax Expense | |||||||||||||
(18 | ) | (23 | ) | (22 | ) | Net of tax | ||||||||||
Equity Investments | ||||||||||||||||
     Equity Income | (2 | ) | (20 | ) | 5 | Income from Equity Investments | ||||||||||
— | 5 | (2 | ) | Income Tax Expense | ||||||||||||
(2 | ) | (15 | ) | 3 | Net of tax | |||||||||||
1 | All amounts in parentheses indicate expenses to the Consolidated Statement of Income. | |||||||||||||||
2 | These Accumulated Other Comprehensive Loss components are included in the computation of net benefit cost. Refer to Note 22 for additional detail. |
EMPLOYEE_POSTRETIREMENT_BENEFI
EMPLOYEE POST-RETIREMENT BENEFITS | 12 Months Ended | |||||||||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||||||||
Compensation and Retirement Disclosure [Abstract] | ||||||||||||||||||||||||||||||
EMPLOYEE POST-RETIREMENT BENEFITS | EMPLOYEE POST-RETIREMENT BENEFITS | |||||||||||||||||||||||||||||
The Company sponsors DB Plans for its employees. Pension benefits provided under the DB Plans are based on years of service and highest average earnings over three consecutive years of employment. Upon commencement of retirement, pension benefits in the Canadian DB Plan increase annually by a portion of the increase in the Consumer Price Index. Past service costs are amortized over the expected average remaining service life of employees, which is approximately nine years (2013 and 2012– nine years). | ||||||||||||||||||||||||||||||
The Company also provides its employees with a savings plan in Canada, DC Plans consisting of 401(k) Plans in the U.S., and post-employment benefits other than pensions, including termination benefits and life insurance and medical benefits beyond those provided by government-sponsored plans. Past service costs are amortized over the expected average remaining life expectancy of former employees, which was approximately 12 years at December 31, 2014 (2013 – 11 years; 2012 – 12 years). In 2014, the Company expensed $37 million (2013 – $29 million; 2012 – $24 million) for the savings plan and DC Plans. | ||||||||||||||||||||||||||||||
Total cash payments for employee post-retirement benefits, consisting of cash contributed by the Company were as follows: | ||||||||||||||||||||||||||||||
year ended December 31 | 2014 | 2013 | 2012 | |||||||||||||||||||||||||||
(millions of Canadian dollars) | ||||||||||||||||||||||||||||||
DB Plans | 73 | 79 | 83 | |||||||||||||||||||||||||||
Other post-retirement benefit plans | 6 | 6 | 7 | |||||||||||||||||||||||||||
Savings and DC Plans | 37 | 29 | 24 | |||||||||||||||||||||||||||
116 | 114 | 114 | ||||||||||||||||||||||||||||
Current Canadian pension legislation allows for partial funding of solvency requirements over a number of years through letters of credit in lieu of cash contributions, up to certain limits. As such, in addition to the cash contributions noted above, in 2014 the Company provided a $47 million letter of credit to the Canadian DB Plan (2013 – $59 million; 2012 – $48 million), resulting in a total of $181 million provided to the Canadian DB Plan under letters of credit at December 31, 2014. | ||||||||||||||||||||||||||||||
The most recent actuarial valuation of the pension plans for funding purposes was as at January 1, 2014 and the next required valuation will be as at January 1, 2015. | ||||||||||||||||||||||||||||||
at December 31 | Pension | Other | ||||||||||||||||||||||||||||
Benefit Plans | Post-Retirement | |||||||||||||||||||||||||||||
Benefit Plans | ||||||||||||||||||||||||||||||
(millions of Canadian dollars) | 2014 | 2013 | 2014 | 2013 | ||||||||||||||||||||||||||
Change in Benefit Obligation1 | ||||||||||||||||||||||||||||||
Benefit obligation – beginning of year | 2,224 | 2,142 | 191 | 186 | ||||||||||||||||||||||||||
Service cost | 85 | 84 | 2 | 2 | ||||||||||||||||||||||||||
Interest cost | 113 | 96 | 10 | 7 | ||||||||||||||||||||||||||
Employee contributions | 4 | 4 | — | — | ||||||||||||||||||||||||||
Benefits paid | (102 | ) | (83 | ) | (7 | ) | (7 | ) | ||||||||||||||||||||||
Actuarial loss/(gain) | 302 | (39 | ) | 14 | (2 | ) | ||||||||||||||||||||||||
Foreign exchange rate changes | 32 | 20 | 6 | 5 | ||||||||||||||||||||||||||
Benefit obligation – end of year | 2,658 | 2,224 | 216 | 191 | ||||||||||||||||||||||||||
Change in Plan Assets | ||||||||||||||||||||||||||||||
Plan assets at fair value – beginning of year | 2,152 | 1,825 | 35 | 32 | ||||||||||||||||||||||||||
Actual return on plan assets | 246 | 313 | 2 | 2 | ||||||||||||||||||||||||||
Employer contributions2 | 73 | 79 | 6 | 6 | ||||||||||||||||||||||||||
Employee contributions | 4 | 4 | — | — | ||||||||||||||||||||||||||
Benefits paid | (102 | ) | (83 | ) | (7 | ) | (7 | ) | ||||||||||||||||||||||
Foreign exchange rate changes | 25 | 14 | 3 | 2 | ||||||||||||||||||||||||||
Plan assets at fair value – end of year | 2,398 | 2,152 | 39 | 35 | ||||||||||||||||||||||||||
Funded Status – Plan Deficit | (260 | ) | (72 | ) | (177 | ) | (156 | ) | ||||||||||||||||||||||
1 | The benefit obligation for the Company's pension benefit plans represents the projected benefit obligation. The benefit obligation for the Company's other post-retirement benefit plans represents the accumulated post-retirement benefit obligation. | |||||||||||||||||||||||||||||
2 | Excludes $181 million in letters of credit provided to the Canadian DB Plans for funding purposes (2013 - $134 million). | |||||||||||||||||||||||||||||
The amounts recognized in the Company's Balance Sheet for its DB Plans and other post-retirement benefits plans are as follows: | ||||||||||||||||||||||||||||||
at December 31 | Pension | Other | ||||||||||||||||||||||||||||
Benefit Plans | Post-Retirement | |||||||||||||||||||||||||||||
Benefit Plans | ||||||||||||||||||||||||||||||
(millions of Canadian dollars) | 2014 | 2013 | 2014 | 2013 | ||||||||||||||||||||||||||
Intangible and Other Assets (Note 11) | — | — | 14 | 16 | ||||||||||||||||||||||||||
Accounts Payable and Other (Note 13) | — | — | (7 | ) | — | |||||||||||||||||||||||||
Other Long-Term Liabilities (Note 14) | (260 | ) | (72 | ) | (184 | ) | (172 | ) | ||||||||||||||||||||||
(260 | ) | (72 | ) | (177 | ) | (156 | ) | |||||||||||||||||||||||
Included in the above benefit obligation and fair value of plan assets were the following amounts for plans that are not fully funded: | ||||||||||||||||||||||||||||||
at December 31 | Pension | Other | ||||||||||||||||||||||||||||
Benefit Plans | Post-Retirement | |||||||||||||||||||||||||||||
Benefit Plans | ||||||||||||||||||||||||||||||
(millions of Canadian dollars) | 2014 | 2013 | 2014 | 2013 | ||||||||||||||||||||||||||
Projected benefit obligation1 | (2,658 | ) | (2,224 | ) | (191 | ) | (172 | ) | ||||||||||||||||||||||
Plan assets at fair value | 2,398 | 2,152 | — | — | ||||||||||||||||||||||||||
Funded Status – Deficit | (260 | ) | (72 | ) | (191 | ) | (172 | ) | ||||||||||||||||||||||
1 | The projected benefit obligation for the pension benefit plan differs from the accumulated benefit obligation in that it includes an assumption with respect to future compensation levels. | |||||||||||||||||||||||||||||
The accumulated benefit obligation for all DB pension plans at December 31, 2014 is $2,437 million (2013 – $2,039 million). | ||||||||||||||||||||||||||||||
The funded status based on the accumulated benefit obligation for all DB Plans is as follows: | ||||||||||||||||||||||||||||||
at December 31 | 2014 | 2013 | ||||||||||||||||||||||||||||
(millions of Canadian dollars) | ||||||||||||||||||||||||||||||
Accumulated benefit obligation | (2,437 | ) | (2,039 | ) | ||||||||||||||||||||||||||
Plan assets at fair value | 2,398 | 2,152 | ||||||||||||||||||||||||||||
Funded Status – (Deficit)/Surplus | (39 | ) | 113 | |||||||||||||||||||||||||||
Included in the above accumulated benefit obligation and fair value of plan assets are the following amounts in respect of plans that are not fully funded. | ||||||||||||||||||||||||||||||
at December 31 | 2014 | 2013 | ||||||||||||||||||||||||||||
(millions of Canadian dollars) | ||||||||||||||||||||||||||||||
Accumulated benefit obligation | (715 | ) | (569 | ) | ||||||||||||||||||||||||||
Plan assets at fair value | 597 | 537 | ||||||||||||||||||||||||||||
Funded Status – Deficit | (118 | ) | (32 | ) | ||||||||||||||||||||||||||
The Company pension plans' weighted average asset allocations and target allocations by asset category were as follows: | ||||||||||||||||||||||||||||||
Asset Category | ||||||||||||||||||||||||||||||
Percentage of | Target Allocations1 | |||||||||||||||||||||||||||||
Plan Assets | ||||||||||||||||||||||||||||||
at December 31 | 2014 | 2013 | 2014 | |||||||||||||||||||||||||||
Debt securities | 31 | % | 31 | % | 25% to 35% | |||||||||||||||||||||||||
Equity securities | 69 | % | 69 | % | 50% to 70% | |||||||||||||||||||||||||
Alternatives | — | — | 5 % to 15% | |||||||||||||||||||||||||||
100 | % | 100 | % | |||||||||||||||||||||||||||
1 | Target allocations were revised in November 2013 and the investment mix is being adjusted over time accordingly. | |||||||||||||||||||||||||||||
Debt and equity securities include the Company's debt and common shares as follows: | ||||||||||||||||||||||||||||||
at December 31 | Percentage of | |||||||||||||||||||||||||||||
Plan Assets | ||||||||||||||||||||||||||||||
(millions of Canadian dollars) | 2014 | 2013 | 2014 | 2013 | ||||||||||||||||||||||||||
Debt securities | 1 | 2 | 0.1 | % | 0.1 | % | ||||||||||||||||||||||||
Equity securities | 1 | 2 | 0.1 | % | 0.1 | % | ||||||||||||||||||||||||
Pension plan assets are managed on a going concern basis, subject to legislative restrictions, and are diversified across asset classes to maximize returns at an acceptable level of risk. Asset mix strategies consider plan demographics and may include traditional equity and debt securities, as well as alternative assets such as infrastructure, private equity, real estate and derivatives to diversify risk. Derivatives are not used for speculative purposes and the use of leveraged derivatives is prohibited. | ||||||||||||||||||||||||||||||
All investments are measured at fair value using market prices. Where the fair value cannot be readily determined by reference to generally available price quotations, the fair value is determined by considering the discounted cash flows on a risk-adjusted basis and by comparison to similar assets which are publicly traded. In Level I, the fair value of assets is determined by reference to quoted prices in active markets for identical assets that the Company has the ability to access at the measurement date. In Level II, the fair value of assets is determined using valuation techniques, such as option pricing models and extrapolation using significant inputs, which are observable directly or indirectly. In Level III, the fair value of assets is determined using a market approach based on inputs that are unobservable and significant to the overall fair value measurement. For further information on the fair value hierarchy, refer to Note 23. | ||||||||||||||||||||||||||||||
The following table presents plan assets for DB Plans and other post-retirement benefits measured at fair value, which have been categorized into the three categories based on a fair value hierarchy. | ||||||||||||||||||||||||||||||
at December 31 | Quoted Prices in | Significant Other Observable Inputs | Significant Unobservable Inputs | Total | Percentage of | |||||||||||||||||||||||||
Active Markets | (Level II) | (Level III) | Total Portfolio | |||||||||||||||||||||||||||
(Level I) | ||||||||||||||||||||||||||||||
(millions of Canadian dollars) | 2014 | 2013 | 2014 | 2013 | 2014 | 2013 | 2014 | 2013 | 2014 | 2013 | ||||||||||||||||||||
Asset Category | ||||||||||||||||||||||||||||||
Cash and Cash Equivalents | 20 | 17 | — | — | — | — | 20 | 17 | 1 | % | 1 | % | ||||||||||||||||||
Equity Securities: | ||||||||||||||||||||||||||||||
Canadian | 361 | 474 | 142 | 170 | — | — | 503 | 644 | 21 | % | 29 | % | ||||||||||||||||||
U.S. | 516 | 423 | 35 | 37 | — | — | 551 | 460 | 23 | % | 21 | % | ||||||||||||||||||
International | 218 | 36 | 147 | 330 | — | — | 365 | 366 | 15 | % | 17 | % | ||||||||||||||||||
Global | — | — | 141 | 14 | — | — | 141 | 14 | 6 | % | 1 | % | ||||||||||||||||||
Emerging | 7 | — | 80 | — | — | — | 87 | — | 3 | % | — | |||||||||||||||||||
Fixed Income Securities: | ||||||||||||||||||||||||||||||
Canadian Bonds: | ||||||||||||||||||||||||||||||
Federal | — | — | 218 | 190 | — | — | 218 | 190 | 9 | % | 9 | % | ||||||||||||||||||
Provincial | — | — | 180 | 154 | — | — | 180 | 154 | 7 | % | 7 | % | ||||||||||||||||||
Municipal | — | — | 7 | 6 | — | — | 7 | 6 | — | — | ||||||||||||||||||||
Corporate | — | — | 76 | 77 | — | — | 76 | 77 | 3 | % | 3 | % | ||||||||||||||||||
U.S. Bonds: | ||||||||||||||||||||||||||||||
State | — | — | 47 | 33 | — | — | 47 | 33 | 2 | % | 2 | % | ||||||||||||||||||
Corporate | — | — | 59 | 48 | — | — | 59 | 48 | 2 | % | 2 | % | ||||||||||||||||||
International: | ||||||||||||||||||||||||||||||
Corporate | — | — | 14 | 20 | — | — | 14 | 20 | 1 | % | 1 | % | ||||||||||||||||||
Mortgage Backed | — | — | 39 | 26 | — | — | 39 | 26 | 2 | % | 1 | % | ||||||||||||||||||
Other Investments: | ||||||||||||||||||||||||||||||
Private Equity Funds | — | — | — | — | 13 | 18 | 13 | 18 | — | 1 | % | |||||||||||||||||||
Funds held on deposit | 117 | 114 | — | — | — | — | 117 | 114 | 5 | % | 5 | % | ||||||||||||||||||
1,239 | 1,064 | 1,185 | 1,105 | 13 | 18 | 2,437 | 2,187 | 100 | % | 100 | % | |||||||||||||||||||
The following table presents the net change in the Level III fair value category: | ||||||||||||||||||||||||||||||
(millions of Canadian dollars, pre-tax) | Private | |||||||||||||||||||||||||||||
Equity Funds | ||||||||||||||||||||||||||||||
Balance at December 31, 2012 | 19 | |||||||||||||||||||||||||||||
Purchases and Sales | (4 | ) | ||||||||||||||||||||||||||||
Realized and unrealized gains | 3 | |||||||||||||||||||||||||||||
Balance at December 31, 2013 | 18 | |||||||||||||||||||||||||||||
Purchases and sales | (7 | ) | ||||||||||||||||||||||||||||
Realized and unrealized gains | 2 | |||||||||||||||||||||||||||||
Balance at December 31, 2014 | 13 | |||||||||||||||||||||||||||||
The Company's expected funding contributions in 2015 are approximately $70 million for the DB Plans, approximately $7 million for the other post-retirement benefit plans and approximately $36 million for the savings plan and DCÂ Plans. The Company expects to provide an additional estimated $35 million letter of credit to the Canadian DB Plan for the funding of solvency requirements. | ||||||||||||||||||||||||||||||
The following are estimated future benefit payments, which reflect expected future service: | ||||||||||||||||||||||||||||||
(millions of Canadian dollars) | Pension | Other Post- | ||||||||||||||||||||||||||||
Benefits | Retirement | |||||||||||||||||||||||||||||
Benefits | ||||||||||||||||||||||||||||||
2015 | 102 | 8 | ||||||||||||||||||||||||||||
2016 | 108 | 8 | ||||||||||||||||||||||||||||
2017 | 114 | 9 | ||||||||||||||||||||||||||||
2018 | 120 | 9 | ||||||||||||||||||||||||||||
2019 | 127 | 10 | ||||||||||||||||||||||||||||
2020 to 2024 | 728 | 51 | ||||||||||||||||||||||||||||
The rate used to discount pension and other post-retirement benefit plan obligations was developed based on a yield curve of corporate AA bond yields at December 31, 2014. This yield curve is used to develop spot rates that vary based on the duration of the obligations. The estimated future cash flows for the pension and other post-retirement obligations were matched to the corresponding rates on the spot rate curve to derive a weighted average discount rate. | ||||||||||||||||||||||||||||||
The significant weighted average actuarial assumptions adopted in measuring the Company's benefit obligations were as follows: | ||||||||||||||||||||||||||||||
Pension Benefit Plans | Other | |||||||||||||||||||||||||||||
Post-Retirement | ||||||||||||||||||||||||||||||
Benefit Plans | ||||||||||||||||||||||||||||||
at December 31 | 2014 | 2013 | 2014 | 2013 | ||||||||||||||||||||||||||
Discount rate | 4.15 | % | 4.95 | % | 4.2 | % | 5 | % | ||||||||||||||||||||||
Rate of compensation increase | 3.15 | % | 3.15 | % | — | — | ||||||||||||||||||||||||
The significant weighted average actuarial assumptions adopted in measuring the Company's net benefit plan costs were as follows: | ||||||||||||||||||||||||||||||
Pension | Other | |||||||||||||||||||||||||||||
Benefit Plans | Post-Retirement | |||||||||||||||||||||||||||||
Benefit Plans | ||||||||||||||||||||||||||||||
year ended December 31 | 2014 | 2013 | 2012 | 2014 | 2013 | 2012 | ||||||||||||||||||||||||
Discount rate | 4.95 | % | 4.35 | % | 5.05 | % | 5 | % | 4.35 | % | 5.1 | % | ||||||||||||||||||
Expected long-term rate of return on plan assets | 6.9 | % | 6.7 | % | 6.7 | % | 4.6 | % | 4.6 | % | 6.4 | % | ||||||||||||||||||
Rate of compensation increase | 3.15 | % | 3.15 | % | 3.15 | % | — | — | — | |||||||||||||||||||||
The overall expected long-term rate of return on plan assets is based on historical and projected rates of return for the portfolio in aggregate and for each asset class in the portfolio. Assumed projected rates of return are selected after analyzing historical experience and estimating future levels and volatility of returns. Asset class benchmark returns, asset mix and anticipated benefit payments from plan assets are also considered in determining the overall expected rate of return. The discount rate is based on market interest rates of high-quality bonds that match the timing and benefits expected to be paid under each plan. | ||||||||||||||||||||||||||||||
A 7.5 per cent average annual rate of increase in the per capita cost of covered health care benefits was assumed for 2015 measurement purposes. The rate was assumed to decrease gradually to five per cent by 2020 and remain at this level thereafter. A one per cent change in assumed health care cost trend rates would have the following effects: | ||||||||||||||||||||||||||||||
(millions of Canadian dollars) | Increase | Decrease | ||||||||||||||||||||||||||||
Effect on total of service and interest cost components | 1 | (1 | ) | |||||||||||||||||||||||||||
Effect on post-retirement benefit obligation | 14 | (12 | ) | |||||||||||||||||||||||||||
The Company's net benefit cost is as follows: | ||||||||||||||||||||||||||||||
at December 31 | Pension | Other | ||||||||||||||||||||||||||||
Benefit Plans | Post-Retirement | |||||||||||||||||||||||||||||
Benefit Plans | ||||||||||||||||||||||||||||||
(millions of Canadian dollars) | 2014 | 2013 | 2012 | 2014 | 2013 | 2012 | ||||||||||||||||||||||||
Service cost | 85 | 84 | 66 | 2 | 2 | 2 | ||||||||||||||||||||||||
Interest cost | 113 | 96 | 94 | 10 | 7 | 8 | ||||||||||||||||||||||||
Expected return on plan assets | (139 | ) | (120 | ) | (113 | ) | (2 | ) | (2 | ) | (2 | ) | ||||||||||||||||||
Amortization of actuarial loss | 21 | 30 | 18 | 2 | 2 | 1 | ||||||||||||||||||||||||
Amortization of past service cost | 2 | 2 | 2 | — | — | 1 | ||||||||||||||||||||||||
Amortization of regulatory asset | 18 | 30 | 19 | 1 | 1 | 1 | ||||||||||||||||||||||||
Amortization of transitional obligation related to regulated business | — | — | — | 2 | 2 | 2 | ||||||||||||||||||||||||
Net Benefit Cost Recognized | 100 | 122 | 86 | 15 | 12 | 13 | ||||||||||||||||||||||||
Pre-tax amounts recognized in AOCI were as follows: | ||||||||||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||||||||||
at December 31 | Pension | Other Post- | Pension | Other Post- | Pension | Other Post- | ||||||||||||||||||||||||
Benefits | Retirement | Benefits | Retirement | Benefits | Retirement | |||||||||||||||||||||||||
(millions of Canadian dollars) | Benefits | Benefits | Benefits | |||||||||||||||||||||||||||
Net loss | 354 | 40 | 236 | 32 | 362 | 33 | ||||||||||||||||||||||||
Prior service cost | 2 | 1 | 3 | 1 | 5 | 2 | ||||||||||||||||||||||||
356 | 41 | 239 | 33 | 367 | 35 | |||||||||||||||||||||||||
The estimated net loss and prior service cost for the DB Plans that will be amortized from AOCI into net periodic benefit cost in 2015 are $27 million and $2 million, respectively. The estimated net loss and prior service cost for the other post-retirement plans that will be amortized from AOCI into net periodic benefit cost in 2015 is $2 million and nil, respectively. | ||||||||||||||||||||||||||||||
Pre-tax amounts recognized in OCI were as follows: | ||||||||||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||||||||||
at December 31 | Pension | Other Post- | Pension | Other Post- | Pension | Other Post- | ||||||||||||||||||||||||
Benefits | Retirement | Benefits | Retirement | Benefits | Retirement | |||||||||||||||||||||||||
(millions of Canadian dollars) | Benefits | Benefits | Benefits | |||||||||||||||||||||||||||
Amortization of net loss from AOCI to OCI | (21 | ) | (2 | ) | (30 | ) | (2 | ) | (19 | ) | (1 | ) | ||||||||||||||||||
Amortization of prior service costs from AOCI to OCI | (2 | ) | — | (2 | ) | — | (2 | ) | — | |||||||||||||||||||||
Funded status adjustment | 137 | 9 | (96 | ) | — | 99 | 5 | |||||||||||||||||||||||
114 | 7 | (128 | ) | (2 | ) | 78 | 4 | |||||||||||||||||||||||
RISK_MANAGEMENT_AND_FINANCIAL_
RISK MANAGEMENT AND FINANCIAL INSTRUMENTS | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
Risk Management and Financial Instruments [Abstract] | ||||||||||||||||
RISK MANAGEMENT AND FINANCIAL INSTRUMENTS | RISK MANAGEMENT AND FINANCIAL INSTRUMENTS | |||||||||||||||
Risk Management Overview | ||||||||||||||||
TransCanada has exposure to market risk and counterparty credit risk, and has strategies, policies and limits in place to manage the impact of these risks on earnings, cash flow and, ultimately, shareholder value. | ||||||||||||||||
Risk management strategies, policies and limits are designed to ensure TransCanada's risks and related exposures are in line with the Company's business objectives and risk tolerance. Market risk and counterparty credit risk are managed within limits ultimately established by the Company's Board of Directors, implemented by senior management and monitored by the Company's risk management and internal audit groups. The Board of Directors' Audit Committee oversees how management monitors compliance with market risk and counterparty credit risk management policies and procedures, and oversees management's review of the adequacy of the risk management framework. Internal audit personnel assist the Audit Committee in its oversight role by performing regular and ad-hoc reviews of risk management controls and procedures, the results of which are reported to the Audit Committee. | ||||||||||||||||
Market Risk | ||||||||||||||||
The Company constructs and invests in energy infrastructure projects, purchases and sells energy commodities, issues short-term and long-term debt, including amounts in foreign currencies, and invests in foreign operations. Certain of these activities expose the Company to market risk from changes in commodity prices, foreign exchange rates and interest rates, which may affect the Company's earnings and the value of the financial instruments it holds. | ||||||||||||||||
The Company uses derivatives as part of its overall risk management strategy to assist in managing the exposure to market risk that results from these activities. These derivative contracts may consist of the following: | ||||||||||||||||
• | Forwards and futures contracts – contractual agreements to purchase or sell a specific financial instrument or commodity at a specified price and date in the future. TransCanada enters into foreign exchange and commodity forwards and futures to manage the impact of volatility in foreign exchange rates and commodity prices. | |||||||||||||||
• | Swaps – contractual agreements between two parties to exchange streams of payments over time according to specified terms. The Company enters into interest rate, cross-currency and commodity swaps to manage the impact of changes in interest rates, foreign exchange rates and commodity prices. | |||||||||||||||
• | Options – contractual agreements that convey the right, but not the obligation of the purchaser to buy or sell a specific amount of a financial instrument or commodity at a fixed price, either at a fixed date or at any time within a specified period. The Company enters into option agreements to manage the impact of changes in interest rates, foreign exchange rates and commodity prices. | |||||||||||||||
Commodity Price Risk | ||||||||||||||||
The Company is exposed to commodity price movements as part of its normal business operations, particularly in relation to the prices of electricity and natural gas. A number of strategies are used to manage these exposures, including the following: | ||||||||||||||||
• | Subject to its overall risk management strategy, the Company commits a portion of its expected power supply to fixed-price medium-term or long-term sales contracts, while reserving an amount of unsold supply to manage operational and price risks in its asset portfolio. | |||||||||||||||
• | The Company purchases a portion of the natural gas required for its power plants or enters into contracts that base the sale price of electricity on the cost of natural gas, effectively locking in a margin. | |||||||||||||||
• | The Company's power sales commitments are fulfilled through power generation or through purchased contracts, thereby reducing the Company's exposure to fluctuating commodity prices. | |||||||||||||||
• | The Company enters into offsetting or back-to-back positions using derivative instruments to manage price risk exposure in power and natural gas commodities created by certain fixed and variable pricing arrangements for different pricing indices and delivery points. | |||||||||||||||
Natural Gas Storage Commodity Price Risk | ||||||||||||||||
TransCanada manages its exposure to seasonal natural gas price spreads in its non-regulated Natural Gas Storage business by economically hedging storage capacity with a portfolio of third-party storage capacity contracts and proprietary natural gas purchases and sales. TransCanada simultaneously enters into a forward purchase of natural gas for injection into storage and an offsetting forward sale of natural gas for withdrawal at a later period, thereby locking in future positive margins and effectively eliminating exposure to natural gas price movements. Unrealized gains and losses on fair value adjustments recorded each period on these forward contracts are not necessarily representative of the amounts that will be realized on settlement. | ||||||||||||||||
Foreign Exchange and Interest Rate Risk | ||||||||||||||||
Foreign exchange and interest rate risk is created by fluctuations in the fair value or cash flow of financial instruments due to changes in foreign exchange rates and interest rates. | ||||||||||||||||
A portion of TransCanada’s earnings from its Natural Gas Pipelines, Liquids Pipelines and Energy segments is generated in U.S. dollars and, therefore, fluctuations in the value of the Canadian dollar relative to the U.S. dollar can affect TransCanada’s net income. As the Company’s U.S. dollar-denominated operations continue to grow, exposure to changes in currency rates increases; some of this foreign exchange impact is partially offset by interest expense on U.S. dollar-denominated debt and by using foreign exchange derivatives. | ||||||||||||||||
The Company uses foreign currency and interest rate derivatives to manage the foreign exchange and interest rate risks related to other U.S. dollar-denominated transactions including those that may arise on some of the Company’s regulated assets, in which case certain of the realized gains and losses on these derivatives would be deferred as regulatory assets and liabilities until they are recovered from or paid to the shippers. | ||||||||||||||||
TransCanada has floating interest rate debt which subjects it to interest rate cash flow risk. The Company uses a combination of interest rate swaps and options to manage its exposure to this risk. | ||||||||||||||||
Net Investment in Foreign Operations | ||||||||||||||||
The Company hedges its net investment in foreign operations (on an after-tax basis) with U.S. dollar-denominated debt, cross-currency interest rate swaps, foreign exchange forward contracts and foreign exchange options. | ||||||||||||||||
U.S. Dollar-Denominated Debt Designated as a Net Investment Hedge | ||||||||||||||||
at December 31 | 2014 | 2013 | ||||||||||||||
(millions of Canadian dollars, unless noted otherwise) | ||||||||||||||||
Carrying value | 17,000 (US 14,700) | 14,200 (US 13,400) | ||||||||||||||
Fair value | 19,000 (US 16,400) | 16,000 (US 15,000) | ||||||||||||||
Derivatives Designated as a Net Investment Hedge | ||||||||||||||||
2014 | 2013 | |||||||||||||||
at December 31 | Fair | Notional or | Fair | Notional or | ||||||||||||
Value1 | Principal | Value1 | Principal | |||||||||||||
(millions of Canadian dollars, unless noted otherwise) | Amount | Amount | ||||||||||||||
U.S. dollar cross-currency interest rate swaps (maturing 2015 to 2019)2 | (431 | ) |          US | 2,900 | (201 | ) |          US | 3,800 | ||||||||
U.S. dollar foreign exchange forward contracts (maturing 2015) | (28 | ) |          US | 1,400 | (11 | ) |             US | 850 | ||||||||
(459 | ) | Â Â Â Â Â Â Â Â Â US | 4,300 | (212 | ) | Â Â Â Â Â Â Â Â Â US | 4,650 | |||||||||
1 | Fair values approximate carrying values. | |||||||||||||||
2 | In 2014, net realized gains of $21 million (2013 – gains of $29 million) related to the interest component of cross-currency swap settlements are included in Interest Expense. | |||||||||||||||
The balance sheet classification of the fair value of derivatives used to hedge the Company’s net investment in foreign operations is as follows: | ||||||||||||||||
at December 31 | 2014 | 2013 | ||||||||||||||
(millions of Canadian dollars) | ||||||||||||||||
Other Current Assets (Note 5) | 5 | 5 | ||||||||||||||
Intangible and Other Assets (Note 11) | 1 | — | ||||||||||||||
Accounts Payable and Other (Note 13) | (155 | ) | (50 | ) | ||||||||||||
Other Long-Term Liabilities (Note 14) | (310 | ) | (167 | ) | ||||||||||||
(459 | ) | (212 | ) | |||||||||||||
Counterparty Credit Risk | ||||||||||||||||
Counterparty credit risk represents the financial loss the Company would experience if a counterparty to a financial instrument failed to meet its obligations in accordance with the terms and conditions of the related contract or agreement with the Company. | ||||||||||||||||
The Company manages its exposure to this potential loss by using recognized credit management techniques, including: | ||||||||||||||||
• | Dealing with creditworthy counterparties - a significant amount of the Company’s credit exposure is with investment grade counterparties or, if not, is generally partially supported by financial assurances from investment grade parties | |||||||||||||||
• | Setting limits on the amount TransCanada can transact with any one counterparty - the Company monitors and manages the concentration of risk exposure with any one counterparty, and reduces the exposure when needed and when it is allowed under the terms of the contracts | |||||||||||||||
• | Using contract netting arrangements and obtaining financial assurances such as guarantees, letters of credit or cash when deemed necessary. | |||||||||||||||
There is no guarantee that these techniques will protect the Company from material losses. | ||||||||||||||||
TransCanada's maximum counterparty credit exposure with respect to financial instruments at December 31, 2014, without taking into account security held, consisted of accounts receivable, portfolio investments recorded at fair value, the fair value of derivative assets and notes, loans and advances receivable. The Company regularly reviews its accounts receivable and records an allowance for doubtful accounts as necessary using the specific identification method. At December 31, 2014, there were no significant amounts past due or impaired, and there were no significant credit losses during the year. The Company had a credit risk concentration due from a counterparty of $258 million (US$222 million) and $240 million (US$225 million) at December 31, 2014 and 2013, respectively. This amount is expected to be fully collectible and is secured by a guarantee from the counterparty's investment grade parent company. | ||||||||||||||||
TransCanada has significant credit and performance exposures to financial institutions as they hold cash deposits and provide committed credit lines and letters of credit that help manage our exposure to counterparties and provide liquidity in commodity, foreign exchange and interest rate derivative markets. | ||||||||||||||||
Financial Instruments | ||||||||||||||||
All financial instruments, including both derivative and non-derivative instruments, are recorded on the balance sheet at fair value unless they were entered into and continue to be held for the purpose of receipt or delivery in accordance with the Company’s normal purchase and normal sales exemptions and are documented as such. In addition, fair value accounting is not required for other financial instruments that qualify for certain accounting exemptions. | ||||||||||||||||
Fair Value of Non-Derivative Financial Instruments | ||||||||||||||||
The fair value of the Company's notes receivable is calculated by discounting future payments of interest and principal using forward interest rates. The fair value of Long-Term Debt is estimated using an income approach based on quoted market prices for the same or similar debt instruments from external data service providers. The fair value of available for sale assets has been calculated using quoted market prices where available. Credit risk has been taken into consideration when calculating the fair value of non-derivative instruments. | ||||||||||||||||
Certain non-derivative financial instruments included in Cash and Cash Equivalents, Accounts Receivable, Intangible and Other Assets, Notes Payable, Accounts Payable and Other, Accrued Interest and Other Long-Term Liabilities have carrying amounts that approximates their fair value due to the nature of the item or the short time to maturity and would be classified in Level II of the fair value hierarchy. | ||||||||||||||||
Balance Sheet Presentation of Non-Derivative Financial Instruments | ||||||||||||||||
The following table details the fair value of the non-derivative financial instruments, excluding those where carrying amounts equal fair value, and would be classified in Level II of the fair value hierarchy: | ||||||||||||||||
2014 | 2013 | |||||||||||||||
at December 31 | Carrying | Fair | Carrying | Fair | ||||||||||||
(millions of Canadian dollars) | Amount | Value | Amount | Value | ||||||||||||
Notes receivable and other1 | 213 | 263 | 226 | 269 | ||||||||||||
Available for sale assets2 | 62 | 62 | 47 | 47 | ||||||||||||
Current and Long-Term Debt3,4Â (Note 15) | (24,757 | ) | (28,713 | ) | (22,865 | ) | (26,134 | ) | ||||||||
Junior Subordinated Notes (Note 17) | (1,160 | ) | (1,157 | ) | (1,063 | ) | (1,093 | ) | ||||||||
(25,642 | ) | (29,545 | ) | (23,655 | ) | (26,911 | ) | |||||||||
1 | Notes receivable are included in Other Current Assets and Intangible and Other Assets on the Consolidated Balance Sheet. | |||||||||||||||
2 | Available for sale assets are included in Intangible and Other Assets on the Consolidated Balance Sheet. | |||||||||||||||
3 | Long-Term Debt is recorded at amortized cost, except for US$400 million (2013 - US$200 million) that is attributed to hedged risk and recorded at fair value. | |||||||||||||||
4 | Consolidated Net Income in 2014 included losses of $3 million (2013 - losses of $5 million) for fair value adjustments attributable to the hedged interest rate risk associated with interest rate swap fair value hedging relationships on US$400 million of Long-Term Debt at December 31, 2014 (2013 - US$200 million). There were no other unrealized gains or losses from fair value adjustments to the non-derivative financial instruments. | |||||||||||||||
Fair Value of Derivative Instruments | ||||||||||||||||
The fair value of foreign exchange and interest rate derivatives have been calculated using the income approach which uses year-end market rates and applies a discounted cash flow valuation model. The fair value of power and natural gas derivatives and available for sale assets has been calculated using quoted market prices where available. In the absence of quoted market prices, third-party broker quotes or other valuation techniques have been used. Credit risk has been taken into consideration when calculating the fair value of derivative instruments. | ||||||||||||||||
In some cases, even though the derivatives are considered to be effective economic hedges, they do not meet the specific criteria for hedge accounting treatment or are not designated as a hedge and are accounted for at fair value with changes in fair value recorded in Net Income in the period of change. This may expose the Company to increased variability in reported earnings because the fair value of the derivative instruments can fluctuate significantly from period to period. | ||||||||||||||||
Balance Sheet Presentation of Derivative Instruments | ||||||||||||||||
The balance sheet classification of the fair value of the derivative instruments is as follows: | ||||||||||||||||
at December 31 | 2014 | 2013 | ||||||||||||||
(millions of Canadian dollars) | ||||||||||||||||
Other Current Assets (Note 5) | 409 | 395 | ||||||||||||||
Intangible and Other Assets (Note 11) | 93 | 112 | ||||||||||||||
Accounts Payable and Other (Note 13) | (749 | ) | (357 | ) | ||||||||||||
Other Long-Term Liabilities (Note 14) | (411 | ) | (255 | ) | ||||||||||||
(658 | ) | (105 | ) | |||||||||||||
2014 Derivative Instruments Summary | ||||||||||||||||
The following summary does not include hedges of the net investment in foreign operations. | ||||||||||||||||
(millions of Canadian dollars, unless noted otherwise) | Power | Natural | Foreign | Interest | ||||||||||||
Gas | Exchange | |||||||||||||||
Derivative Instruments Held for Trading1 | ||||||||||||||||
Fair Values2 | ||||||||||||||||
Assets | $362 | $69 | $1 | $4 | ||||||||||||
Liabilities | ($391 | ) | ($103 | ) | ($32 | ) | ($4 | ) | ||||||||
Notional Values | ||||||||||||||||
Volumes3 | ||||||||||||||||
Purchases | 42,097 | 60 | — | — | ||||||||||||
Sales | 35,452 | 38 | — | — | ||||||||||||
U.S. dollars | — | — | US 1,374 | US 100 | ||||||||||||
Net unrealized losses in the year4 | ($5 | ) | ($35 | ) | ($20 | ) | $— | |||||||||
Net realized (losses)/gains in the year4 | ($39 | ) | $11 | ($28 | ) | $— | ||||||||||
Maturity dates | 2015-2019 | 2015-2020 | 2015 | 2015-2016 | ||||||||||||
Derivative Instruments in Hedging Relationships5,6 | ||||||||||||||||
Fair Values2 | ||||||||||||||||
Assets | $57 | $— | $— | $3 | ||||||||||||
Liabilities | ($163 | ) | $— | $— | ($2 | ) | ||||||||||
Notional Values | ||||||||||||||||
Volumes3 | ||||||||||||||||
Purchases | 11,120 | — | — | — | ||||||||||||
Sales | 3,977 | — | — | — | ||||||||||||
U.S. dollars | — | — | — | US 550 | ||||||||||||
Net realized gains in the year4 | $130 | $— | $— | $4 | ||||||||||||
Maturity dates | 2015-2019 | — | — | 2015-2018 | ||||||||||||
1 | The majority of derivative instruments held for trading have been entered into for risk management purposes and all are subject to the Company’s risk management strategies, policies and limits. These include derivatives that have not been designated as hedges or do not qualify for hedge accounting treatment but have been entered into as economic hedges to manage the Company’s exposures to market risk. | |||||||||||||||
2 | Fair value equals carrying value. | |||||||||||||||
3 | Volumes for power and natural gas derivatives are in GWh and Bcf, respectively. | |||||||||||||||
4 | Realized and unrealized gains and losses on held for trading derivative instruments used to purchase and sell power and natural gas are included net in Energy Revenues. Realized and unrealized gains and losses on interest rate and foreign exchange derivative instruments held for trading are included net in Interest Expense and Interest Income and Other, respectively. The effective portion of the change in fair value of derivative instruments in hedging relationships is initially recognized in OCI and reclassified to Energy Revenues, Interest Expense and Interest Income and Other, as appropriate, as the original hedged item settles. | |||||||||||||||
5 | All hedging relationships are designated as cash flow hedges except for interest rate derivative instruments designated as fair value hedges with a fair value of $3 million and a notional amount of US$400 million. In 2014, net realized gains on fair value hedges were $7 million and were included in Interest Expense. In 2014, the Company did not record any amounts in Net Income related to ineffectiveness for fair value hedges. | |||||||||||||||
6 | In 2014, there were no gains or losses included in Net Income relating to discontinued cash flow hedges where it was probable that the anticipated transaction would not occur. | |||||||||||||||
2013 Derivative Instruments Summary | ||||||||||||||||
The following summary does not include hedges of the net investment in foreign operations. | ||||||||||||||||
(millions of Canadian dollars, unless noted otherwise) | Power | Natural | Foreign | Interest | ||||||||||||
Gas | Exchange | |||||||||||||||
Derivative Instruments Held for Trading1 | ||||||||||||||||
Fair Values2 | ||||||||||||||||
Assets | $265 | $73 | $— | $8 | ||||||||||||
Liabilities | ($280 | ) | ($72 | ) | ($12 | ) | ($7 | ) | ||||||||
Notional Values | ||||||||||||||||
Volumes3 | ||||||||||||||||
Purchases | 29,301 | 88 | — | — | ||||||||||||
Sales | 28,534 | 60 | — | — | ||||||||||||
Canadian dollars | — | — | — | 400 | ||||||||||||
U.S. dollars | — | — | US 1,015 | US 100 | ||||||||||||
Net unrealized gains/(losses) in the year4 | $19 | $17 | ($10 | ) | $— | |||||||||||
Net realized losses in the year4 | ($49 | ) | ($13 | ) | ($9 | ) | $— | |||||||||
Maturity dates | 2014-2017 | 2014-2016 | 2014 | 2014-2016 | ||||||||||||
Derivative Instruments in Hedging Relationships5,6 | ||||||||||||||||
Fair Values2 | ||||||||||||||||
Assets | $150 | $— | $— | $6 | ||||||||||||
Liabilities | ($22 | ) | $— | ($1 | ) | ($1 | ) | |||||||||
Notional Values | ||||||||||||||||
Volumes3 | ||||||||||||||||
Purchases | 9,758 | — | — | — | ||||||||||||
Sales | 6,906 | — | — | — | ||||||||||||
U.S. dollars | — | — | US 16 | US 350 | ||||||||||||
Net realized (losses)/gains in the year4 | ($19 | ) | ($2 | ) | $— | $5 | ||||||||||
Maturity dates | 2014-2018 | — | 2014 | 2015-2018 | ||||||||||||
1 | The majority of derivative instruments held for trading have been entered into for risk management purposes and all are subject to the Company’s risk management strategies, policies and limits. These include derivatives that have not been designated as hedges or do not qualify for hedge accounting treatment but have been entered into as economic hedges to manage the Company’s exposures to market risk. | |||||||||||||||
2 | Fair value equals carrying value. | |||||||||||||||
3 | Volumes for power and natural gas derivatives are in GWh and Bcf, respectively. | |||||||||||||||
4 | Realized and unrealized gains and losses on held for trading derivative instruments used to purchase and sell power and natural gas are included net in Energy Revenues. Realized and unrealized gains and losses on interest rate and foreign exchange derivative instruments held for trading are included net in Interest Expense and Interest Income and Other, respectively. The effective portion of the change in fair value of derivative instruments in hedging relationships is initially recognized in OCI and reclassified to Energy Revenues, Interest Expense and Interest Income and Other, as appropriate, as the original hedged item settles. | |||||||||||||||
5 | All hedging relationships are designated as cash flow hedges except for interest rate derivative instruments designated as fair value hedges with a fair value of $5 million and a notional amount of US$200 million. In 2013, net realized gains on fair value hedges were $6 million and were included in Interest Expense. In 2013, the Company did not record any amounts in Net Income related to ineffectiveness for fair value hedges. | |||||||||||||||
6 | In 2013, there were no gains or losses included in Net Income relating to discontinued cash flow hedges where it was probable that the anticipated transaction would not occur. | |||||||||||||||
Derivatives in Cash Flow Hedging Relationships | ||||||||||||||||
The following table presents the components of OCI (Note 21) related to derivatives in cash flow hedging relationships: | ||||||||||||||||
year ended December 31 | 2014 | 2013 | ||||||||||||||
(millions of Canadian dollars, pre-tax) | ||||||||||||||||
Change in fair value of derivative instruments recognized in OCI (effective portion)1 | ||||||||||||||||
Power | (126 | ) | 117 | |||||||||||||
Natural Gas | (2 | ) | (1 | ) | ||||||||||||
Foreign Exchange | 10 | 5 | ||||||||||||||
(118 | ) | 121 | ||||||||||||||
Reclassification of (losses)/gains on derivative instruments from AOCI to Net Income (effective portion)1 | ||||||||||||||||
Power2 | (114 | ) | 40 | |||||||||||||
Natural Gas2 | 3 | 4 | ||||||||||||||
Interest3 | 16 | 16 | ||||||||||||||
(95 | ) | 60 | ||||||||||||||
(Losses)/gains on derivative instruments recognized in Net Income (ineffective portion) | ||||||||||||||||
Power | (13 | ) | 8 | |||||||||||||
(13 | ) | 8 | ||||||||||||||
1 | No amounts have been excluded from the assessment of hedge effectiveness. Amounts in parentheses indicate losses recorded to OCI. | |||||||||||||||
2 | Reported within Energy Revenues on the Consolidated Statement of Income. | |||||||||||||||
3 | Reported within Interest Expense on the Consolidated Statement of Income. | |||||||||||||||
Offsetting of Derivative Instruments | ||||||||||||||||
The Company enters into derivative contracts with the right to offset in the normal course of business as well as in the event of default. TransCanada has no master netting agreements, however, similar contracts are entered into containing rights of offset. The Company has elected to present the fair value of derivative instruments with the right to offset on a gross basis in the balance sheet. The following table shows the impact on the presentation of the fair value of derivative instrument assets and liabilities had the Company elected to present these contracts on a net basis: | ||||||||||||||||
at December 31, 2014 | Gross derivative instruments presented on the balance sheet | Amounts available for offset1 | Net amounts | |||||||||||||
(millions of Canadian dollars) | ||||||||||||||||
Derivative - Asset | ||||||||||||||||
Power | 419 | (330 | ) | 89 | ||||||||||||
Natural gas | 69 | (57 | ) | 12 | ||||||||||||
Foreign exchange | 7 | (7 | ) | — | ||||||||||||
Interest | 7 | (1 | ) | 6 | ||||||||||||
502 | (395 | ) | 107 | |||||||||||||
Derivative - Liability | ||||||||||||||||
Power | (554 | ) | 330 | (224 | ) | |||||||||||
Natural gas | (103 | ) | 57 | (46 | ) | |||||||||||
Foreign exchange | (497 | ) | 7 | (490 | ) | |||||||||||
Interest | (6 | ) | 1 | (5 | ) | |||||||||||
(1,160 | ) | 395 | (765 | ) | ||||||||||||
1 | Amounts available for offset do not include cash collateral pledged or received. | |||||||||||||||
The following table shows the impact on the presentation of the fair value of derivative instrument assets and liabilities had the Company elected to present these contracts on a net basis as at December 31, 2013: | ||||||||||||||||
at December 31, 2013 | Gross derivative instruments presented on the balance sheet | Amounts available for offset1 | Net amounts | |||||||||||||
(millions of Canadian dollars) | ||||||||||||||||
Derivative - Asset | ||||||||||||||||
Power | 415 | (277 | ) | 138 | ||||||||||||
Natural gas | 73 | (61 | ) | 12 | ||||||||||||
Foreign exchange | 5 | (5 | ) | — | ||||||||||||
Interest | 14 | (2 | ) | 12 | ||||||||||||
507 | (345 | ) | 162 | |||||||||||||
Derivative - Liability | ||||||||||||||||
Power | (302 | ) | 277 | (25 | ) | |||||||||||
Natural gas | (72 | ) | 61 | (11 | ) | |||||||||||
Foreign exchange | (230 | ) | 5 | (225 | ) | |||||||||||
Interest | (8 | ) | 2 | (6 | ) | |||||||||||
(612 | ) | 345 | (267 | ) | ||||||||||||
1 | Amounts available for offset do not include cash collateral pledged or received. | |||||||||||||||
With respect to all financial arrangements, including the derivative instruments presented above as at December 31, 2014, the Company had provided cash collateral of $459 million (2013 – $67 million) and letters of credit of $26 million (2013 – $85 million) to its counterparties. The Company held $1 million (2013 – $11 million) in cash collateral and $1 million (2013 – $32 million) in letters of credit from counterparties on asset exposures at December 31, 2014. | ||||||||||||||||
Credit Risk Related Contingent Features of Derivative Instruments | ||||||||||||||||
Derivative contracts entered into to manage market risk often contain financial assurance provisions that allow parties to the contracts to manage credit risk. These provisions may require collateral to be provided if a credit-risk-related contingent event occurs, such as a downgrade in the Company's credit rating to non-investment grade. | ||||||||||||||||
Based on contracts in place and market prices at December 31, 2014, the aggregate fair value of all derivative instruments with credit-risk-related contingent features that were in a net liability position was $15 million (2013 – $16 million), for which the Company has provided collateral in the normal course of business of nil (2013 – nil). If the credit-risk-related contingent features in these agreements were triggered on December 31, 2014, the Company would have been required to provide additional collateral of $15 million (2013 – $16 million) to its counterparties. Collateral may also need to be provided should the fair value of derivative instruments exceed pre-defined contractual exposure limit thresholds. | ||||||||||||||||
The Company has sufficient liquidity in the form of cash and undrawn committed revolving bank lines to meet these contingent obligations should they arise. | ||||||||||||||||
Fair Value Hierarchy | ||||||||||||||||
The Company's financial assets and liabilities recorded at fair value have been categorized into three categories based on a fair value hierarchy. | ||||||||||||||||
Levels | How fair value has been determined | |||||||||||||||
Level I | Quoted prices in active markets for identical assets and liabilities that the Company has the ability to access at the measurement date. | |||||||||||||||
Level II | Valuation based on the extrapolation of inputs, other than quoted prices included within Level I, for which all significant inputs are observable directly or indirectly. | |||||||||||||||
Inputs include published exchange rates, interest rates, interest rate swap curves, yield curves and broker quotes from external data service providers. | ||||||||||||||||
This category includes interest rate and foreign exchange derivative assets and liabilities where fair value is determined using the income approach and power and natural gas commodity derivatives where fair value is determined using the market approach. | ||||||||||||||||
Transfers between Level I and Level II would occur when there is a change in market circumstances. | ||||||||||||||||
Level III | Valuation of assets and liabilities are measured using a market approach based on extrapolation of inputs that are unobservable or where observable data does not support a significant portion of the derivatives fair value. This category includes long-dated commodity transactions in certain markets where liquidity is low and inputs may include long-term broker quotes. | |||||||||||||||
Long-term electricity prices may also be estimated using a third-party modeling tool which takes into account physical operating characteristics of generation facilities in the markets in which the Company operates. Model inputs include market fundamentals such as fuel prices, power supply additions and retirements, power demand, seasonal hydro conditions and transmission constraints. Long-term North American natural gas prices might be estimated on a view of future natural gas supply and demand, as well as exploration and development costs. Significant decreases in fuel prices or demand for electricity or natural gas, or increases in the supply of electricity or natural gas, small number of transactions in markets with lower liquidity are expected to or may result in a lower fair value measurement of contracts included in Level III. | ||||||||||||||||
Assets and liabilities measured at fair value can fluctuate between Level II and Level III depending on the proportion of the value of the contract that extends beyond the time frame for which significant inputs are considered to be observable. As contracts near maturity and observable market data becomes available, they are transferred out of Level III and into Level II. | ||||||||||||||||
The fair value of the Company's assets and liabilities measured on a recurring basis, including both current and non-current portions for 2014, are categorized as follows: | ||||||||||||||||
at December 31, 2014 | Quoted prices in active markets | Significant other observable inputs Level II1 | Significant unobservable inputs | Total | ||||||||||||
(millions of Canadian dollars, pre-tax) | Level I1 | Level III1 | ||||||||||||||
Derivative Instrument Assets: | ||||||||||||||||
Power commodity contracts | — | 417 | 2 | 419 | ||||||||||||
Natural gas commodity contracts | 40 | 24 | 5 | 69 | ||||||||||||
Foreign exchange contracts | — | 7 | — | 7 | ||||||||||||
Interest rate contracts | — | 7 | — | 7 | ||||||||||||
Derivative Instrument Liabilities: | ||||||||||||||||
Power commodity contracts | — | (551 | ) | (3 | ) | (554 | ) | |||||||||
Natural gas commodity contracts | (86 | ) | (17 | ) | — | (103 | ) | |||||||||
Foreign exchange contracts | — | (497 | ) | — | (497 | ) | ||||||||||
Interest rate contracts | — | (6 | ) | — | (6 | ) | ||||||||||
Non-Derivative Financial Instruments: | ||||||||||||||||
Available for sale assets | — | 62 | — | 62 | ||||||||||||
(46 | ) | (554 | ) | 4 | (596 | ) | ||||||||||
1 | There were no transfers from Level I to Level II or from Level II to Level III for the year ended December 31, 2014. | |||||||||||||||
The fair value of the Company's assets and liabilities measured on a recurring basis, including both current and non-current portions for 2013, are categorized as follows: | ||||||||||||||||
at December 31, 2013 | Quoted prices in active markets | Significant other observable inputs Level II1 | Significant unobservable inputs | Total | ||||||||||||
(millions of Canadian dollars, pre-tax) | Level I1 | Level III1 | ||||||||||||||
Derivative Instrument Assets: | ||||||||||||||||
Power commodity contracts | — | 411 | 4 | 415 | ||||||||||||
Natural gas commodity contracts | 48 | 25 | — | 73 | ||||||||||||
Foreign exchange contracts | — | 5 | — | 5 | ||||||||||||
Interest rate contracts | — | 14 | — | 14 | ||||||||||||
Derivative Instrument Liabilities: | ||||||||||||||||
Power commodity contracts | — | (299 | ) | (3 | ) | (302 | ) | |||||||||
Natural gas commodity contracts | (50 | ) | (22 | ) | — | (72 | ) | |||||||||
Foreign exchange contracts | — | (230 | ) | — | (230 | ) | ||||||||||
Interest rate contracts | — | (8 | ) | — | (8 | ) | ||||||||||
Non-Derivative Financial Instruments: | ||||||||||||||||
Available for sale assets | — | 47 | — | 47 | ||||||||||||
(2 | ) | (57 | ) | 1 | (58 | ) | ||||||||||
1 | There were no transfers from Level I to Level II or from Level II to Level III for the year ended December 31, 2013. | |||||||||||||||
The following table presents the net change in fair value of derivative assets and liabilities classified as Level III of the fair value hierarchy: | ||||||||||||||||
(millions of Canadian dollars, pre-tax) | 2014 | 2013 | ||||||||||||||
Balance at beginning of year | 1 | (2 | ) | |||||||||||||
Transfers out of Level III | — | (2 | ) | |||||||||||||
Total gains/(losses) included in Net Income | 3 | (1 | ) | |||||||||||||
Total gains included in OCI | — | 6 | ||||||||||||||
Balance at end of year1 | 4 | 1 | ||||||||||||||
1 | Energy Revenues include unrealized gains attributed to derivatives in the Level III category that were still held at December 31, 2014 of $3 million (2013 – nil). | |||||||||||||||
A 10 per cent increase or decrease in commodity prices, with all other variables held constant, would result in a $1 million decrease or increase, respectively, in the fair value of outstanding derivative instruments included in Level III as at December 31, 2014. |
CHANGES_IN_OPERATING_WORKING_C
CHANGES IN OPERATING WORKING CAPITAL | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
CHANGES IN OPERATING WORKING CAPITAL | |||||||||
CHANGES IN OPERATING WORKING CAPITAL | CHANGES IN OPERATING WORKING CAPITAL | ||||||||
year ended December 31 | 2014 | 2013 | 2012 | ||||||
(millions of Canadian dollars) | |||||||||
(Increase)/decrease in Accounts Receivable | (189 | ) | (54 | ) | 67 | ||||
(Increase)/decrease in Inventories | (28 | ) | (30 | ) | 27 | ||||
(Increase)/decrease in Other Current Assets | (385 | ) | 40 | 66 | |||||
Increase/(decrease) in Accounts Payable and Other | 377 | (290 | ) | 127 | |||||
Increase in Accrued Interest | 36 | 8 | — | ||||||
(Increase)/Decrease in Operating Working Capital | (189 | ) | (326 | ) | 287 | ||||
ACQUISITIONS_AND_DISPOSITIONS
ACQUISITIONS AND DISPOSITIONS | 12 Months Ended |
Dec. 31, 2014 | |
Business Combinations [Abstract] | |
ACQUISITIONS AND DISPOSITIONS | ACQUISITIONS AND DISPOSITIONS |
Energy | |
Ontario Solar | |
As part of a purchase agreement with Canadian Solar Solutions Inc. signed in 2011, TransCanada completed the acquisition of three Ontario solar facilities for $181 million in September 2014 and acquired a fourth facility for $60 million in December 2014. In 2013, TransCanada completed the acquisition of four solar facilities for $216 million. The Company's total investment in the eight solar facilities is $457 million. All power produced by the solar facilities is sold under 20-year PPAs with the Ontario Power Authority. | |
Cancarb | |
On April 15, 2014, TransCanada sold Cancarb Limited and its related power generation for aggregate gross proceeds of $190 million. Please refer to Note 6 for further information on the sale. | |
CrossAlta | |
In December 2012, TransCanada purchased BP's 40 per cent interest in the assets of the Crossfield Gas Storage facility and BP's interest in CrossAlta Gas Storage & Services Ltd. (collectively CrossAlta) for $214 million in cash, net of cash acquired, resulting in the Company owning and operating 100 per cent of these operations. | |
The Company measured the assets and liabilities acquired at fair value and the transaction resulted in no goodwill. Upon completion of the acquisition, TransCanada began consolidating CrossAlta. Prior to the acquisition, TransCanada applied equity accounting to its 60 per cent ownership interest in CrossAlta. | |
Natural Gas Pipelines | |
TC PipeLines, LP | |
On October 1, 2014, TransCanada completed the sale of its remaining 30 per cent interest in Bison Pipeline LLC | |
(Bison LLC) to TC PipeLines, LP for an aggregate purchase price of US$215 million. | |
In July 2013, TransCanada completed the sale of a 45 per cent interest in each of GTN LLC and Bison LLC to TC PipeLines, LP for an aggregate purchase price of US$1.05 billion, which included US$146 million of long-term debt for 45 per cent of GTN LLC debt outstanding, plus normal closing adjustments. GTN LLC and Bison LLC own the GTN and Bison natural gas pipelines, respectively. | |
In May 2013, TC PipeLines, LP completed a public offering of 8,855,000 common units at a price of US$43.85 per unit, resulting in gross proceeds of approximately US$388 million and net proceeds of US$373 million after unit issuance costs. TransCanada contributed approximately US$8 million to maintain its two per cent general partnership interest and did not purchase any other units. Upon completion of this offering, TransCanada’s ownership interest in TC PipeLines, LP decreased from 33.3 per cent to 28.9 per cent and an after-tax dilution gain of $29 million ($47 million pre-tax) was recorded in Additional Paid-In Capital. | |
Gas Pacifico/INNERGY | |
On November 26, 2014, TransCanada sold its 30 per cent equity investments in Gas Pacifico and INNERGY for aggregate gross proceeds of $9 million and recognized a gain of $9 million ($8 million after tax). |
COMMITMENTS_CONTINGENCIES_AND_
COMMITMENTS, CONTINGENCIES AND GUARANTEES | 12 Months Ended | |||||||||||||
Dec. 31, 2014 | ||||||||||||||
Commitments and Contingencies Disclosure [Abstract] | ||||||||||||||
COMMITMENTS, CONTINGENCIES AND GUARANTEES | COMMITMENTS, CONTINGENCIES AND GUARANTEES | |||||||||||||
Commitments | ||||||||||||||
Operating Leases | ||||||||||||||
Future annual payments, net of sub-lease receipts, under the Company's operating leases for various premises, services and equipment are approximately as follows: | ||||||||||||||
year ended December 31 | Minimum | Amounts | Net | |||||||||||
Lease | Recoverable | Payments | ||||||||||||
Payments | under | |||||||||||||
(millions of Canadian dollars) | Sub-leases | |||||||||||||
2015 | 348 | 48 | 300 | |||||||||||
2016 | 335 | 47 | 288 | |||||||||||
2017 | 335 | 48 | 287 | |||||||||||
2018 | 250 | 27 | 223 | |||||||||||
2019 | 232 | 23 | 209 | |||||||||||
2020 and thereafter | 407 | 20 | 387 | |||||||||||
1,907 | 213 | 1,694 | ||||||||||||
The operating lease agreements for premises, services and equipment expire at various dates through 2052, with an option to renew certain lease agreements for periods of one year to five years. Net rental expense on operating leases in 2014 was $114 million (2013 – $98 million; 2012 – $84 million). | ||||||||||||||
TransCanada's commitments under the Alberta PPAs are considered to be operating leases and a portion of these PPAs have been subleased to third parties under similar terms and conditions. Fixed payments under these PPAs have been included in the above operating leases table. Variable payments have been excluded as these payments are dependent upon plant availability and other factors. TransCanada's share of payments under the PPAs in 2014 was $391 million (2013 – $242 million; 2012 – $238 million). The generating capacities and expiry dates of the PPAs are as follows: | ||||||||||||||
MW | Expiry Date | |||||||||||||
Sundance A | 560 | December 31, 2017 | ||||||||||||
Sheerness | 756 | December 31, 2020 | ||||||||||||
TransCanada and its affiliates have long-term natural gas transportation and natural gas purchase arrangements as well as other purchase obligations, all of which are transacted at market prices and in the normal course of business. | ||||||||||||||
Other Commitments | ||||||||||||||
Capital expenditure commitments include obligations related to the construction of growth projects and are based on the projects proceeding as planned. Changes to these projects, including cancellation, would reduce or possibly eliminate these commitments as a result of cost mitigation efforts. | ||||||||||||||
At December 31, 2014, TransCanada was committed to Natural Gas Pipelines capital expenditures totaling approximately $0.9 billion (2013 – $1.3 billion), primarily related to construction costs related to the Mexican and other natural gas pipeline projects. | ||||||||||||||
At December 31, 2014, the Company was committed to Liquids Pipelines capital expenditures totaling approximately $1.8 billion (2013 – $2.5 billion), primarily related to construction costs of Keystone XL, Grand Rapids and Northern Courier. | ||||||||||||||
At December 31, 2014, the Company was committed to Energy capital expenditures totaling approximately $0.2 billion (2013 – $0.1 billion), primarily related to capital costs of the Napanee Generating Station. | ||||||||||||||
Contingencies | ||||||||||||||
TransCanada is subject to laws and regulations governing environmental quality and pollution control. As at December 31, 2014, the Company had accrued approximately $31 million (2013 - $32 million; 2012 – $37 million) related to operating facilities, which represents the present value of the estimated future amount it expects to expend to remediate the sites. However, additional liabilities may be incurred as assessments occur and remediation efforts continue. | ||||||||||||||
TransCanada and its subsidiaries are subject to various legal proceedings, arbitrations and actions arising in the normal course of business. While the final outcome of such legal proceedings and actions cannot be predicted with certainty, it is the opinion of management that the resolution of such proceedings and actions will not have a material impact on the Company's consolidated financial position or results of operations. | ||||||||||||||
Guarantees | ||||||||||||||
TransCanada and its joint venture partner on Bruce Power, BPC Generation Infrastructure Trust (BPC), have each severally guaranteed certain contingent financial obligations of Bruce B related to a lease agreement and contractor and supplier services. In addition, TransCanada and BPC have each severally guaranteed one-half of certain contingent financial obligations of Bruce A related to a sublease agreement and certain other financial obligations. The Company's exposure under certain of these guarantees is unlimited. | ||||||||||||||
In addition to the guarantees for Bruce Power, the Company and its partners in certain other jointly owned entities have either (i) jointly and severally, (ii) jointly or (iii) severally guaranteed the financial performance of these entities related primarily to redelivery of natural gas, PPA payments and the payment of liabilities. For certain of these entities, any payments made by TransCanada under these guarantees in excess of its ownership interest are to be reimbursed by its partners. | ||||||||||||||
The carrying value of these guarantees has been included in Other Long-Term Liabilities. Information regarding the Company’s guarantees is as follows: | ||||||||||||||
2014 | 2013 | |||||||||||||
year ended December 31 | Term | Potential Exposure1 | Carrying Value | Potential Exposure1 | Carrying Value | |||||||||
(millions of Canadian dollars) | ||||||||||||||
Bruce Power | Ranging to 20192 | 634 | 6 | 740 | 8 | |||||||||
Other jointly owned entities | Ranging to 2040 | 104 | 14 | 51 | 10 | |||||||||
738 | 20 | 791 | 18 | |||||||||||
1 | TransCanada's share of the potential estimated current or contingent exposure. | |||||||||||||
2 | Except for one guarantee with no termination date. |
SUBSEQUENT_EVENTS_Notes
SUBSEQUENT EVENTS (Notes) | 12 Months Ended |
Dec. 31, 2014 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | Â SUBSEQUENT EVENTS |
On January 12, 2015 TCPL completed its offering of US$500 million 1.88 per cent Senior Notes due January 12, 2018 and US$250 million Floating Rate Senior Notes due January 12, 2018. |
ACCOUNTING_POLICIES_Policies
ACCOUNTING POLICIES (Policies) | 12 Months Ended | |
Dec. 31, 2014 | ||
Accounting Policies [Abstract] | ||
Basis of Presentation | Basis of Presentation | |
The consolidated financial statements include the accounts of TransCanada and its subsidiaries. The Company consolidates its interest in entities over which it is able to exercise control. To the extent there are interests owned by other parties, these interests are included in Non-Controlling Interests. TransCanada uses the equity method of accounting for joint ventures in which the Company is able to exercise joint control and for investments in which the Company is able to exercise significant influence. TransCanada records its proportionate share of undivided interests in certain assets. Certain prior year amounts have been reclassified to conform to current year presentation. | ||
Use of Estimates and Judgements | Use of Estimates and Judgments | |
In preparing these financial statements, TransCanada is required to make estimates and assumptions that affect both the amount and timing of recording assets, liabilities, revenues and expenses since the determination of these items may be dependent on future events. The Company uses the most current information available and exercises careful judgment in making these estimates and assumptions. Significant estimates and assumptions used in the preparation of the consolidated financial statements include, but are not limited to: | ||
• | carrying values and depreciation rates of plant, property and equipment (Note 7); | |
• | carrying value of equity investments (Note 8); | |
• | carrying value of regulatory assets and liabilities (Note 9); | |
• | carrying value of goodwill (Note 10); | |
• | amortization rates and carrying values of intangible assets (Note 11); | |
• | carrying value of asset retirement obligations (Note 14); | |
• | provisions for income taxes (Note 16); | |
• | assumptions used to measure retirement and other postretirement obligations (Note 22); | |
• | fair value of financial instruments (Note 23); and | |
• | provision for commitments, contingencies and guarantees (Note 26). | |
Actual results could differ from those estimates. | ||
Regulation | Regulation | |
In Canada, regulated natural gas pipelines and liquids pipelines are subject to the authority of the National Energy Board (NEB) of Canada. In the U.S., natural gas pipelines, liquids pipelines and regulated natural gas storage assets are subject to the authority of the U.S. Federal Energy Regulatory Commission (FERC). In Mexico, natural gas pipelines are subject to the authority of the Energy Regulatory Commission of Mexico (CRE). The Company's Canadian, U.S. and Mexican natural gas transmission operations are regulated with respect to construction, operations and the determination of tolls. Rate-regulated accounting (RRA) standards may impact the timing of the recognition of certain revenues and expenses in TransCanada's rate-regulated businesses which may differ from that otherwise expected in non-rate-regulated businesses to appropriately reflect the economic impact of the regulators' decisions regarding revenues and tolls. TransCanada's businesses that apply RRA currently include Canadian, U.S. and Mexican natural gas pipelines, regulated U.S. natural gas storage and certain of our liquids pipelines projects. RRA is not applicable to the Keystone Pipeline System and, as a result, the regulators' decisions regarding operations and tolls on that system generally do not have an impact on timing of recognition of revenues and expenses. | ||
Revenue Recognition | Revenue Recognition | |
Natural Gas and Liquids Pipelines | ||
Revenues from the Company's natural gas and liquids pipelines, with the exception of Canadian natural gas pipelines which are subject to RRA, are generated from contractual arrangements for committed capacity and from the transportation of natural gas or crude oil. Revenues earned from firm contracted capacity arrangements are recognized ratably over the contract period regardless of the amount of natural gas or crude oil that is transported. Transportation revenues for interruptible or volumetric-based services are recognized when physical deliveries of natural gas or crude oil are made. The U.S. natural gas pipelines are subject to FERC regulations and, as a result, revenues collected may be subject to refund during a rate proceeding. Allowances for these potential refunds are recognized at the time of the regulatory decision. | ||
Revenues from Canadian natural gas pipelines subject to RRA are recognized in accordance with decisions made by the NEB. The Company's Canadian natural gas pipeline rates are based on revenue requirements designed to recover the costs of providing natural gas transportation services, which include a return of and return on capital, as approved by the NEB. The Company's Canadian natural gas pipelines are not subject to risks related to variances in revenues and most costs. These variances are generally subject to deferral treatment and are recovered or refunded in future rates. The Company's Canadian natural gas pipelines are periodically subject to incentive mechanisms, as negotiated with shippers and approved by the NEB. These mechanisms can result in the Company recognizing more or less revenue than required to recover the costs that are subject to incentives. Revenues are recognized on firm contracted capacity ratably over the contract period. Revenues from interruptible or volumetric-based services are recorded when physical delivery is made. Revenues recognized prior to an NEB decision on rates for that period reflect the NEB's last approved rate of return on common equity (ROE) assumptions. Adjustments to revenue are recorded when the NEB decision is received. | ||
Revenues from the Company's regulated natural gas storage services are recognized ratably over the contract period for firm committed capacity regardless of the amount of natural gas that is stored and when gas is injected or withdrawn for interruptible or volumetric-based services. The Company does not take ownership of the gas or oil that it transports or stores for others. | ||
Energy | ||
Power | ||
Revenues from the Company's Energy business are primarily derived from the sale of electricity and from the sale of unutilized natural gas fuel, which are recorded at the time of delivery. Revenues also include capacity payments and ancillary services, as well as gains and losses resulting from the use of commodity derivative contracts. The accounting for derivative contracts is described in the Derivative Instruments and Hedging Activities section of this note. | ||
Natural Gas Storage | ||
Revenues earned from providing non-regulated natural gas storage services are recognized in accordance with the terms of the natural gas storage contracts, which is generally over the term of the contract. Revenues earned on the sale of proprietary natural gas are recorded in the month of delivery. Derivative contracts for the purchase or sale of natural gas are recorded at fair value with changes in fair value recorded in Revenues. | ||
Cash and Cash Equivalents | Cash and Cash Equivalents | |
The Company's Cash and Cash Equivalents consist of cash and highly liquid short-term investments with original maturities of three months or less and are recorded at cost, which approximates fair value. | ||
Inventories | Inventories | |
Inventories primarily consist of materials and supplies, including spare parts and fuel, and natural gas inventory in storage, and are carried at the lower of weighted average cost or market. | ||
Plant, Property and Equipment | Plant, Property and Equipment | |
Natural Gas Pipelines | ||
Plant, property and equipment for natural gas pipelines are carried at cost. Depreciation is calculated on a straight-line basis once the assets are ready for their intended use. Pipeline and compression equipment are depreciated at annual rates ranging from one per cent to six per cent, and metering and other plant equipment are depreciated at various rates, reflecting their estimated useful lives. The cost of major overhauls of equipment is capitalized and depreciated over the estimated service lives of the overhauls. The cost of regulated natural gas pipelines includes an allowance for funds used during construction (AFUDC) consisting of a debt component and an equity component based on the rate of return on rate base approved by regulators. AFUDC is reflected as an increase in the cost of the assets in plant, property and equipment and the equity component of AFUDC is a non-cash expenditure with a corresponding credit recognized in Interest Income and Other. Interest is capitalized during construction of non-regulated natural gas pipelines. | ||
When regulated natural gas pipelines retire plant, property and equipment from service, the original book cost is removed from the gross plant amount and recorded as a reduction to accumulated depreciation. Costs incurred to remove a plant from service, net of any salvage proceeds, are also recorded in accumulated depreciation. | ||
Liquids Pipelines | ||
Plant, property and equipment for liquids pipelines are carried at cost. Depreciation is calculated on a straight-line basis once the assets are ready for their intended use. Pipeline and pumping equipment are depreciated at annual rates ranging from two per cent to 2.5 per cent, and other plant and equipment are depreciated at various rates. The cost of these assets includes interest capitalized during construction for non-regulated liquids pipelines and AFUDC for regulated pipelines. When liquids pipelines retire plant, property and equipment from service, the original book cost and related accumulated depreciation and amortization are derecognized and any gain or loss is recorded in earnings. | ||
Energy | ||
Power generation and natural gas storage plant, equipment and structures are recorded at cost and, once the assets are ready for their intended use, depreciated by major component on a straight-line basis over their estimated service lives at average annual rates ranging from two per cent to 20 per cent. Other equipment is depreciated at various rates. The cost of major overhauls of equipment is capitalized and depreciated over the estimated service lives of the overhauls. Interest is capitalized on facilities under construction. When these assets are retired from plant, property and equipment, the original book cost and related accumulated depreciation and amortization are derecognized and any gain or loss is recorded in earnings. | ||
Corporate | ||
Corporate plant, property and equipment are recorded at cost and depreciated on a straight-line basis over their estimated useful lives at average annual rates ranging from three per cent to 20 per cent. | ||
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets | |
The Company reviews long-lived assets, such as plant, property and equipment, and intangible assets for impairment whenever events or changes in circumstances indicate the carrying value may not be recoverable. If the total of the estimated undiscounted future cash flows is less than the carrying value of the assets, an impairment loss is recognized for the excess of the carrying value over the fair value of the assets. | ||
Acquisitions and Goodwill | Acquisitions and Goodwill | |
The Company accounts for business acquisitions using the acquisition method of accounting and, accordingly, the assets and liabilities of the acquired entities are primarily measured at their estimated fair value at the date of acquisition. Goodwill is not amortized and is tested for impairment on an annual basis or more frequently if events or changes in circumstances indicate that the asset might be impaired. The annual review for goodwill impairment is performed at the reporting unit level which is one level below the Company's operating segments. The Company initially assesses qualitative factors to determine whether events or changes in circumstances indicate that the goodwill might be impaired. If TransCanada concludes that it is not more likely than not that fair value of the reporting unit is greater than its carrying value, the first step of the two-step impairment test is performed by comparing the fair value of the reporting unit to its book value, which includes goodwill. If the fair value is less than book value, an impairment is indicated and a second step is performed to measure the amount of the impairment. In the second step, the implied fair value of goodwill is calculated by deducting the recognized amounts of all tangible and intangible net assets of the reporting unit from the fair value determined in the initial assessment. If the carrying value of goodwill exceeds the calculated implied fair value of goodwill, an impairment charge is recorded in an amount equal to the difference. | ||
Power Purchase Arrangements | Power Purchase Arrangements | |
A PPA is a long-term contract for the purchase or sale of power on a predetermined basis. Substantially all PPAs under which TransCanada buys power are accounted for as operating leases. Initial payments for these PPAs were recognized in Intangible and Other Assets and amortized on a straight-line basis over the term of the contracts, which expire in 2017 and 2020. A portion of these PPAs has been subleased to third parties under terms and conditions similar to the PPAs. The subleases are accounted for as operating leases and TransCanada records the margin earned from the subleases as a component of Revenues. | ||
Income Taxes | Income Taxes | |
The Company uses the asset and liability method of accounting for income taxes. This method requires the recognition of deferred income tax assets and liabilities for future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred income tax assets and liabilities are measured using enacted tax rates at the balance sheet date that are anticipated to apply to taxable income in the years in which temporary differences are expected to be reversed or settled. Changes to these balances are recognized in income in the period during which they occur except for changes in balances related to the Canadian Mainline, NGTL System and Foothills, which are deferred until they are refunded or recovered in tolls, as permitted by the NEB. | ||
Canadian income taxes are not provided on the unremitted earnings of foreign investments that the Company does not intend to repatriate in the foreseeable future. | ||
Asset Retirement Obligations | Asset Retirement Obligations | |
The Company recognizes the fair value of a liability for asset retirement obligations (ARO) in the period in which it is incurred, when a legal obligation exists and a reasonable estimate of fair value can be made. The fair value is added to the carrying amount of the associated asset and the liability is accreted through charges to operating expenses. | ||
Recorded ARO relates to the non-regulated natural gas storage operations and certain power generation facilities. The scope and timing of asset retirements related to natural gas pipelines, liquids pipelines and hydroelectric power plants is indeterminable. As a result, the Company has not recorded an amount for ARO related to these assets, with the exception of certain abandoned facilities. | ||
Environmental Liabilities | Environmental Liabilities | |
The Company records liabilities on an undiscounted basis for environmental remediation efforts that are likely to occur and where the cost can be reasonably estimated. The estimates, including associated legal costs, are based on available information using existing technology and enacted laws and regulations. The estimates are subject to revision in future periods based on actual costs incurred or new circumstances. Amounts expected to be recovered from other parties, including insurers, are recorded as an asset separate from the associated liability. | ||
Emission allowances or credits purchased for compliance are recorded on the Balance Sheet at historical cost and expensed when they are utilized. Compliance costs are expensed when incurred. Allowances granted to or internally generated by TransCanada are not attributed a value for accounting purposes. When required, TransCanada accrues emission liabilities on the Balance Sheet upon the generation or sale of power using the best estimate of the amount required to settle the obligation. Allowances and credits not used for compliance are sold and any gain or loss is recorded in Revenues. | ||
Stock Options and Other Compensation Programs | Stock Options and Other Compensation Programs | |
TransCanada's Stock Option Plan permits options for the purchase of common shares to be awarded to certain employees, including officers. Stock options granted are recorded using the fair value method. Under this method, compensation expense is measured at the grant date based on the fair value as calculated using a binomial model and is recognized on a straight-line basis over the vesting period, with an offset to Additional Paid-In Capital. Upon exercise of stock options, amounts originally recorded against Additional Paid-In Capital are reclassified to Common Shares. | ||
The Company has medium-term incentive plans, under which payments are made to eligible employees. The expense related to these incentive plans is accounted for on an accrual basis. Under these plans, benefits vest when certain conditions are met, including the employees' continued employment during a specified period and achievement of specified corporate performance targets. | ||
Employee Post-Retirement Benefits | Employee Post-Retirement Benefits | |
The Company sponsors defined benefit pension plans (DB Plans), defined contribution plans (DC Plans), a savings plan and other post-retirement benefit plans. Contributions made by the Company to the DC Plans and savings plan are expensed in the period in which contributions are made. The cost of the DB Plans and other post-retirement benefits received by employees is actuarially determined using the projected benefit method pro-rated based on service and management's best estimate of expected plan investment performance, salary escalation, retirement age of employees and expected health care costs. | ||
The DB Plans' assets are measured at fair value at December 31 of each year. The expected return on the DB Plans' assets is determined using market-related values based on a five-year moving average value for all of the DB Plans' assets. Past service costs are amortized over the expected average remaining service life of the employees. Adjustments arising from plan amendments are amortized on a straight-line basis over the average remaining service life of employees active at the date of amendment. The Company recognizes the overfunded or underfunded status of its DB Plans as an asset or liability, respectively, on its Balance Sheet and recognizes changes in that funded status through Other Comprehensive Income (OCI) in the year in which the change occurs. The excess of net actuarial gains or losses over 10 per cent of the greater of the benefit obligation and the market-related value of the DB Plans' assets, if any, is amortized out of Accumulated Other Comprehensive Loss (AOCI) over the average remaining service life of the active employees. When the restructuring of a benefit plan gives rise to both a curtailment and a settlement, the curtailment is accounted for prior to the settlement. | ||
For certain regulated operations, post-retirement benefit amounts are recoverable through tolls as benefits are funded. The Company records any unrecognized gains or losses or changes in actuarial assumptions related to these post-retirement benefit plans as either regulatory assets or liabilities. The regulatory assets or liabilities are amortized on a straight-line basis over the expected average remaining service life of active employees. | ||
Foreign Currency Transactions and Translation | Foreign Currency Transactions and Translation | |
Foreign currency transactions are those transactions whose terms are denominated in a currency other than the currency of the primary economic environment in which the company or reporting subsidiary operates, referred to as the functional currency. Transactions denominated in foreign currencies are translated into the functional currency using the exchange rate prevailing at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are translated to the functional currency using the rate of exchange in effect at the balance sheet date whereas non-monetary assets and liabilities are translated at the historical rate of exchange in effect on the date of the transaction. Exchange gains and losses resulting from translation of monetary assets and liabilities are recorded in income except for exchange gains and losses of the foreign currency debt related to Canadian regulated natural gas pipelines, which are deferred until they are refunded or recovered in tolls, as permitted by the NEB. | ||
Gains and losses arising from translation of foreign operations' functional currencies to the Company's Canadian dollar reporting currency are reflected in OCI. Asset and liability accounts are translated at the period-end exchange rates while revenues, expenses, gains and losses are translated at the exchange rates in effect at the time of the transaction. The Company's U.S. dollar-denominated debt has been designated as a hedge of the net investment in foreign subsidiaries and, as a result, the unrealized foreign exchange gains and losses on the U.S. dollar denominated debt are also reflected in OCI. | ||
Derivative Instruments and Hedging Activities | Derivative Instruments and Hedging Activities | |
All derivative instruments are recorded on the balance sheet at fair value, unless they qualify for and are designated under a normal purchase and normal sales exemption, or are considered to meet other permitted exemptions. | ||
The Company applies hedge accounting to arrangements that qualify and are designated for hedge accounting treatment, which includes fair value and cash flow hedges, and hedges of foreign currency exposures of net investments in foreign operations. Hedge accounting is discontinued prospectively if the hedging relationship ceases to be effective or the hedging or hedged items cease to exist as a result of maturity, expiry, sale, termination, cancellation or exercise. | ||
In a fair value hedging relationship, the carrying value of the hedged item is adjusted for changes in fair value attributable to the hedged risk and these changes are recognized in Net Income. Changes in the fair value of the hedged item, to the extent that the hedging relationship is effective, are offset by changes in the fair value of the hedging item, which are also recorded in Net Income. Changes in the fair value of foreign exchange and interest rate fair value hedges are recorded in Interest Income and Other and Interest Expense, respectively. If hedge accounting is discontinued, the carrying value of the hedged item is no longer adjusted and the cumulative fair value adjustments to the carrying value of the hedged item are amortized to Net Income over the remaining term of the original hedging relationship. | ||
In a cash flow hedging relationship, the effective portion of the change in the fair value of the hedging derivative is initially recognized in OCI, while any ineffective portion is recognized in Net Income in the same financial statement category as the underlying transaction. When hedge accounting is discontinued, the amounts recognized previously in AOCI are reclassified to Revenues, Interest Expense and Interest Income and Other, as appropriate, during the periods when the variability in cash flows of the hedged item affects Net Income or as the original hedged item settles. Gains and losses on derivatives are reclassified immediately to Net Income from AOCI when the hedged item is sold or terminated early, or when it becomes probable that the anticipated transaction will not occur. | ||
In hedging the foreign currency exposure of a net investment in a foreign operation, the effective portion of foreign exchange gains and losses on the hedging instruments is recognized in OCI and the ineffective portion is recognized in Net Income. The amounts recognized previously in AOCI are reclassified to Net Income in the event the Company reduces its net investment in a foreign operation. | ||
In some cases, derivatives do not meet the specific criteria for hedge accounting treatment. In these instances, the changes in fair value are recorded in Net Income in the period of change. | ||
The recognition of gains and losses on derivatives for Canadian natural gas regulated pipelines exposures is determined through the regulatory process. Gains and losses arising from changes in the fair value of derivatives accounted for as part of RRA, including those that qualify for hedge accounting treatment, can be recovered through the tolls charged by the Company. As a result, these gains and losses are deferred as Regulatory Assets or Regulatory Liabilities and are refunded to or collected from the ratepayers, in subsequent years when the derivative settles. | ||
Derivatives embedded in other financial instruments or contracts (host instrument) are recorded as separate derivatives. Embedded derivatives are measured at fair value if their economic characteristics are not clearly and closely related to those of the host instrument, their terms are the same as those of a stand-alone derivative and the total contract is not held for trading or accounted for at fair value. When changes in the fair value of embedded derivatives are measured separately, they are included in Net Income. | ||
Long-Term Debt Transaction Costs | Long-Term Debt Transaction Costs | |
The Company records Long-Term Debt transaction costs as other assets and amortizes these costs using the effective interest method for all costs except those related to the Canadian natural gas regulated pipelines, which continue to be amortized on a straight-line basis in accordance with the provisions of regulatory tolling mechanisms. | ||
Guarantees | Guarantees | |
Upon issuance, the Company records the fair value of certain guarantees entered into by the Company or partially owned entities for which contingent payments may be made. The fair value of these guarantees is estimated by discounting the cash flows that would be incurred by the Company if letters of credit were used in place of the guarantees as appropriate in the circumstances. Guarantees are recorded as an increase to Equity Investments, Plant, Property and Equipment, or a charge to Net Income, and a corresponding liability is recorded in Other Long-Term Liabilities. |
SEGMENTED_INFORMATION_Tables
SEGMENTED INFORMATION (Tables) | 12 Months Ended | ||||||||||||||
Dec. 31, 2014 | |||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||
Schedule of Segment Reporting Information, by Segment | |||||||||||||||
year ended December 31, 2014 | Natural Gas | Liquids | Energy | Corporate | Total | ||||||||||
(millions of Canadian dollars) | Pipelines | Pipelines | |||||||||||||
Revenues | 4,913 | 1,547 | 3,725 | — | 10,185 | ||||||||||
Income from Equity Investments | 163 | — | 359 | — | 522 | ||||||||||
Plant Operating Costs and Other | (1,501 | ) | (426 | ) | (919 | ) | (127 | ) | (2,973 | ) | |||||
Commodity Purchases Resold | — | — | (1,836 | ) | — | (1,836 | ) | ||||||||
Property Taxes | (334 | ) | (62 | ) | (77 | ) | — | (473 | ) | ||||||
Depreciation and Amortization | (1,063 | ) | (216 | ) | (309 | ) | (23 | ) | (1,611 | ) | |||||
Gain on Sale of Assets | 9 | — | 108 | — | 117 | ||||||||||
Segment earnings | 2,187 | 843 | 1,051 | (150 | ) | 3,931 | |||||||||
Interest Expense | (1,198 | ) | |||||||||||||
Interest Income and Other | 91 | ||||||||||||||
Income before Income Taxes | 2,824 | ||||||||||||||
Income Tax Expense | (831 | ) | |||||||||||||
Net Income | 1,993 | ||||||||||||||
Net Income Attributable to Non-Controlling Interests | (153 | ) | |||||||||||||
Net Income Attributable to Controlling Interests | 1,840 | ||||||||||||||
Preferred Share Dividends | (97 | ) | |||||||||||||
Net Income Attributable to Common Shares | 1,743 | ||||||||||||||
Capital Spending | |||||||||||||||
Capital Expenditures | 1,768 | 1,530 | 206 | 46 | 3,550 | ||||||||||
Projects Under Development | 368 | 439 | — | — | 807 | ||||||||||
2,136 | 1,969 | 206 | 46 | 4,357 | |||||||||||
at December 31, 2014 | |||||||||||||||
(millions of Canadian dollars) | |||||||||||||||
Total Assets | 27,103 | 16,116 | 14,197 | 1,531 | 58,947 | ||||||||||
year ended December 31, 2013 | Natural Gas | Liquids | Energy | Corporate | Total | ||||||||||
(millions of Canadian dollars) | Pipelines | Pipelines | |||||||||||||
Revenues | 4,497 | 1,124 | 3,176 | — | 8,797 | ||||||||||
Income from Equity Investments | 145 | — | 452 | — | 597 | ||||||||||
Plant Operating Costs and Other | (1,405 | ) | (328 | ) | (833 | ) | (108 | ) | (2,674 | ) | |||||
Commodity Purchases Resold | — | — | (1,317 | ) | — | (1,317 | ) | ||||||||
Property Taxes | (329 | ) | (44 | ) | (72 | ) | — | (445 | ) | ||||||
Depreciation and Amortization | (1,027 | ) | (149 | ) | (293 | ) | (16 | ) | (1,485 | ) | |||||
Segment earnings | 1,881 | 603 | 1,113 | (124 | ) | 3,473 | |||||||||
Interest Expense | (985 | ) | |||||||||||||
Interest Income and Other | 34 | ||||||||||||||
Income before Income Taxes | 2,522 | ||||||||||||||
Income Tax Expense | (611 | ) | |||||||||||||
Net Income | 1,911 | ||||||||||||||
Net Income Attributable to Non-Controlling Interests | (125 | ) | |||||||||||||
Net Income Attributable to Controlling Interests | 1,786 | ||||||||||||||
Preferred Share Dividends | (74 | ) | |||||||||||||
Net Income Attributable to Common Shares | 1,712 | ||||||||||||||
Capital Spending | |||||||||||||||
Capital Expenditures | 1,776 | 2,286 | 152 | 50 | 4,264 | ||||||||||
Projects Under Development | 245 | 243 | — | — | 488 | ||||||||||
2,021 | 2,529 | 152 | 50 | 4,752 | |||||||||||
at December 31, 2013 | |||||||||||||||
(millions of Canadian dollars) | |||||||||||||||
Total Assets | 25,165 | 13,253 | 13,747 | 1,733 | 53,898 | ||||||||||
year ended December 31, 2012 | Natural Gas | Liquids | Energy | Corporate | Total | ||||||||||
(millions of Canadian dollars) | Pipelines | Pipelines | |||||||||||||
Revenues | 4,264 | 1,039 | 2,704 | — | 8,007 | ||||||||||
Income from Equity Investments | 157 | — | 100 | — | 257 | ||||||||||
Plant Operating Costs and Other | (1,365 | ) | (296 | ) | (819 | ) | (97 | ) | (2,577 | ) | |||||
Commodity Purchases Resold | — | — | (1,049 | ) | — | (1,049 | ) | ||||||||
Property Taxes | (315 | ) | (45 | ) | (74 | ) | — | (434 | ) | ||||||
Depreciation and Amortization | (933 | ) | (145 | ) | (283 | ) | (14 | ) | (1,375 | ) | |||||
Segment earnings | 1,808 | 553 | 579 | (111 | ) | 2,829 | |||||||||
Interest Expense | (976 | ) | |||||||||||||
Interest Income and Other | 85 | ||||||||||||||
Income before Income Taxes | 1,938 | ||||||||||||||
Income Tax Expense | (466 | ) | |||||||||||||
Net Income | 1,472 | ||||||||||||||
Net Income Attributable to Non-Controlling Interests | (118 | ) | |||||||||||||
Net Income Attributable to Controlling Interests | 1,354 | ||||||||||||||
Preferred Share Dividends | (55 | ) | |||||||||||||
Net Income Attributable to Common Shares | 1,299 | ||||||||||||||
Capital Spending | |||||||||||||||
Capital Expenditures | 1,389 | 1,145 | 24 | 37 | 2,595 | ||||||||||
Projects Under Development | — | 3 | — | — | 3 | ||||||||||
1,389 | 1,148 | 24 | 37 | 2,598 | |||||||||||
at December 31, 2012 | |||||||||||||||
(millions of Canadian dollars) | |||||||||||||||
Total Assets | 23,210 | 10,485 | 13,157 | 1,481 | 48,333 | ||||||||||
Revenue from External Customers by Geographic Areas | |||||||||||||||
year ended December 31 | 2014 | 2013 | 2012 | ||||||||||||
(millions of Canadian dollars) | |||||||||||||||
Revenues | |||||||||||||||
Canada – domestic | 4,021 | 4,659 | 3,527 | ||||||||||||
Canada – export | 1,314 | 997 | 1,121 | ||||||||||||
United States | 4,653 | 3,029 | 3,252 | ||||||||||||
Mexico | 197 | 112 | 107 | ||||||||||||
10,185 | 8,797 | 8,007 | |||||||||||||
Schedule of Disclosure on Geographic Areas, Long-Lived Assets in Individual Foreign Countries by Country | |||||||||||||||
at December 31 | 2014 | 2013 | |||||||||||||
(millions of Canadian dollars) | |||||||||||||||
Plant, Property and Equipment | |||||||||||||||
Canada | 19,191 | 18,462 | |||||||||||||
United States | 20,098 | 17,570 | |||||||||||||
Mexico | 2,485 | 1,574 | |||||||||||||
41,774 | 37,606 | ||||||||||||||
OTHER_CURRENT_ASSETS_Tables
OTHER CURRENT ASSETS (Tables) | 12 Months Ended | |||||
Dec. 31, 2014 | ||||||
Other Assets [Abstract] | ||||||
Schedule of other current assets | ||||||
at December 31 | 2014 | 2013 | ||||
(millions of Canadian dollars) | ||||||
Deferred income tax assets (Note 16) | 427 | 119 | ||||
Cash held as collateral | 423 | 42 | ||||
Fair value of derivative contracts (Note 23) | 409 | 395 | ||||
Other | 171 | 164 | ||||
Regulatory Assets (Note 9) | 16 | 42 | ||||
Assets held for sale (Note 6) | — | 85 | ||||
1,446 | 847 | |||||
ASSETS_HELD_FOR_SALE_Tables
ASSETS HELD FOR SALE (Tables) | 12 Months Ended | |||
Dec. 31, 2014 | ||||
Property, Plant and Equipment [Abstract] | ||||
Schedule of Assets Held for Sale | ||||
at December 31 | 2013 | |||
(millions of Canadian dollars) | ||||
Assets Held for Sale | ||||
Cash and Cash Equivalents | 1 | |||
Accounts Receivable | 12 | |||
Inventories | 11 | |||
Plant, Property and Equipment | 61 | |||
Total Assets Held for Sale (included in Other Current Assets, Note 5) | 85 | |||
Liabilities Related to Assets Held for Sale | ||||
Accounts Payable and Other | 4 | |||
Other Long-Term Liabilities | 1 | |||
Total Liabilities Related to Assets Held for Sale (included in Accounts Payable and Other, Note 13) | 5 | |||
PLANT_PROPERTY_AND_EQUIPMENT_T
PLANT, PROPERTY AND EQUIPMENT (Tables) | 12 Months Ended | |||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||
Property, Plant and Equipment [Abstract] | ||||||||||||||||||
Schedule of plant, property and equipment | ||||||||||||||||||
2014 | 2013 | |||||||||||||||||
at December 31 | Cost | Accumulated | Net | Cost | Accumulated | Net | ||||||||||||
(millions of Canadian dollars) | Depreciation | Book Value | Depreciation | Book Value | ||||||||||||||
Natural Gas Pipelines | ||||||||||||||||||
Canadian Mainline | ||||||||||||||||||
Pipeline | 9,045 | 5,712 | 3,333 | 8,970 | 5,457 | 3,513 | ||||||||||||
Compression | 3,423 | 2,100 | 1,323 | 3,392 | 1,961 | 1,431 | ||||||||||||
Metering and other | 458 | 180 | 278 | 409 | 174 | 235 | ||||||||||||
12,926 | 7,992 | 4,934 | 12,771 | 7,592 | 5,179 | |||||||||||||
Under construction | 135 | — | 135 | 85 | — | 85 | ||||||||||||
13,061 | 7,992 | 5,069 | 12,856 | 7,592 | 5,264 | |||||||||||||
NGTL System | ||||||||||||||||||
Pipeline | 8,185 | 3,619 | 4,566 | 7,813 | 3,410 | 4,403 | ||||||||||||
Compression | 2,055 | 1,318 | 737 | 2,038 | 1,253 | 785 | ||||||||||||
Metering and other | 1,032 | 446 | 586 | 947 | 418 | 529 | ||||||||||||
11,272 | 5,383 | 5,889 | 10,798 | 5,081 | 5,717 | |||||||||||||
Under construction | 413 | — | 413 | 290 | — | 290 | ||||||||||||
11,685 | 5,383 | 6,302 | 11,088 | 5,081 | 6,007 | |||||||||||||
ANR | ||||||||||||||||||
Pipeline | 1,087 | 85 | 1,002 | 922 | 59 | 863 | ||||||||||||
Compression | 741 | 102 | 639 | 635 | 81 | 554 | ||||||||||||
Metering and other | 617 | 110 | 507 | 535 | 91 | 444 | ||||||||||||
2,445 | 297 | 2,148 | 2,092 | 231 | 1,861 | |||||||||||||
Under construction | 115 | — | 115 | 67 | — | 67 | ||||||||||||
2,560 | 297 | 2,263 | 2,159 | 231 | 1,928 | |||||||||||||
Other Natural Gas Pipelines | ||||||||||||||||||
GTN | 1,842 | 588 | 1,254 | 1,685 | 488 | 1,197 | ||||||||||||
Great Lakes | 1,807 | 939 | 868 | 1,650 | 833 | 817 | ||||||||||||
Foothills | 1,671 | 1,180 | 491 | 1,649 | 1,120 | 529 | ||||||||||||
Mexico | 1,518 | 130 | 1,388 | 641 | 90 | 551 | ||||||||||||
Other1 | 1,800 | 363 | 1,437 | 1,652 | 288 | 1,364 | ||||||||||||
8,638 | 3,200 | 5,438 | 7,277 | 2,819 | 4,458 | |||||||||||||
Under construction | 1,132 | — | 1,132 | 1,047 | — | 1,047 | ||||||||||||
9,770 | 3,200 | 6,570 | 8,324 | 2,819 | 5,505 | |||||||||||||
37,076 | 16,872 | 20,204 | 34,427 | 15,723 | 18,704 | |||||||||||||
Liquids Pipelines | ||||||||||||||||||
Keystone | ||||||||||||||||||
Pipeline | 7,931 | 463 | 7,468 | 5,079 | 286 | 4,793 | ||||||||||||
Pumping equipment | 964 | 80 | 884 | 1,118 | 82 | 1,036 | ||||||||||||
Tanks and other | 2,282 | 144 | 2,138 | 962 | 71 | 891 | ||||||||||||
11,177 | 687 | 10,490 | 7,159 | 439 | 6,720 | |||||||||||||
Under construction2 | 4,438 | — | 4,438 | 6,020 | — | 6,020 | ||||||||||||
15,615 | 687 | 14,928 | 13,179 | 439 | 12,740 | |||||||||||||
Energy | ||||||||||||||||||
Natural Gas – Ravenswood | 2,140 | 476 | 1,664 | 1,966 | 377 | 1,589 | ||||||||||||
Natural Gas – Other3,4 | 3,214 | 971 | 2,243 | 3,061 | 846 | 2,215 | ||||||||||||
Hydro | 736 | 156 | 580 | 673 | 126 | 547 | ||||||||||||
Wind | 970 | 190 | 780 | 946 | 155 | 791 | ||||||||||||
Natural Gas Storage | 653 | 99 | 554 | 677 | 92 | 585 | ||||||||||||
Solar5 | 488 | 13 | 475 | 226 | 2 | 224 | ||||||||||||
Other | 64 | 19 | 45 | 57 | 30 | 27 | ||||||||||||
8,265 | 1,924 | 6,341 | 7,606 | 1,628 | 5,978 | |||||||||||||
Under construction | 149 | — | 149 | 54 | — | 54 | ||||||||||||
8,414 | 1,924 | 6,490 | 7,660 | 1,628 | 6,032 | |||||||||||||
Corporate | 232 | 80 | 152 | 191 | 61 | 130 | ||||||||||||
61,337 | 19,563 | 41,774 | 55,457 | 17,851 | 37,606 | |||||||||||||
1 | Includes Bison, Portland, North Baja, Tuscarora and Ventures LP. | |||||||||||||||||
2 | Includes $3.2 billion for Keystone XL at December 31, 2014 (2013 – $2.6 billion). Keystone XL remains subject to regulatory approvals. | |||||||||||||||||
3 | Includes facilities with long-term PPAs that are accounted for as operating leases. The cost and accumulated depreciation of these facilities were $695 million and $103 million, respectively, at December 31, 2014 (2013 – $640 million and $78 million, respectively). Revenues of $81 million were recognized in 2014 (2013 – $78 million; 2012 – $73 million) through the sale of electricity under the related PPAs. | |||||||||||||||||
4 | Includes Halton Hills, Coolidge, Bécancour, Ocean State Power, Mackay River and other natural gas-fired facilities. | |||||||||||||||||
5 | Includes the acquisitions of four solar power facilities in each of 2014 and 2013. |
EQUITY_INVESTMENTS_Tables
EQUITY INVESTMENTS (Tables) | 12 Months Ended | |||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||
Equity Method Investments and Joint Ventures [Abstract] | ||||||||||||||||||
Schedule of equity investments | ||||||||||||||||||
(millions of Canadian dollars) | Ownership | Income/(Loss) from Equity | Equity | |||||||||||||||
 Interest at | Investments | Investments | ||||||||||||||||
 December 31, 2014 | year ended December 31 | at December 31 | ||||||||||||||||
2014 | 2013 | 2012 | 2014 | 2013 | ||||||||||||||
Natural Gas Pipelines | ||||||||||||||||||
Northern Border1,2 | 76 | 66 | 72 | 587 | 557 | |||||||||||||
Iroquois | 44.5 | % | 43 | 41 | 41 | 210 | 188 | |||||||||||
TQM | 50 | % | 12 | 13 | 16 | 73 | 76 | |||||||||||
Other | Various | 32 | 25 | 28 | 68 | 62 | ||||||||||||
Energy | ||||||||||||||||||
Bruce A3 | 48.9 | % | 209 | 202 | (149 | ) | 3,944 | 3,988 | ||||||||||
Bruce B3 | 31.6 | % | 105 | 108 | 163 | 51 | 377 | |||||||||||
ASTC Power Partnership | 50 | % | 8 | 110 | 40 | 29 | 41 | |||||||||||
Portlands Energy | 50 | % | 36 | 31 | 28 | 335 | 343 | |||||||||||
Other4 | Various | 1 | 1 | 18 | 61 | 57 | ||||||||||||
Liquids Pipelines | ||||||||||||||||||
Grand Rapids | 50 | % | — | — | — | 240 | 70 | |||||||||||
522 | 597 | 257 | 5,598 | 5,759 | ||||||||||||||
1 | The results reflect a 50 per cent interest in Northern Border as a result of the Company fully consolidating TC PipeLines, LP. At December 31, 2014, TransCanada had an ownership interest in TC PipeLines, LP of 28.3 per cent (2013 – 28.9 and 2012 – 33.3 per cent) and its effective ownership of Northern Border, net of non-controlling interests, was 14.2 per cent (2013 – 14.5 and 2012 – 16.7 per cent). | |||||||||||||||||
2 | At December 31, 2014, the difference between the carrying value of the investment and the underlying equity in the net assets of Northern Border Pipeline Company is US$117 million (2013 – US$118 million) due to the fair value assessment of assets at the time of acquisition. | |||||||||||||||||
3 | At December 31, 2014, the difference between the carrying value of the investment and the underlying equity in the net assets of Bruce Power is $776 million (2013 – $820 million) due to the fair value assessment of assets at the time of acquisition. | |||||||||||||||||
4 | In December 2012, TransCanada acquired the remaining 40 per cent interest in CrossAlta to bring the Company's ownership interest to 100 per cent. The results reflect the Company's 60 per cent share of equity income up to that date. | |||||||||||||||||
Summary of financial information for the equity investees | ||||||||||||||||||
year ended December 31 | 2014 | 2013 | 2012 | |||||||||||||||
(millions of Canadian dollars) | ||||||||||||||||||
Income | ||||||||||||||||||
Revenues | 4,814 | 4,989 | 3,860 | |||||||||||||||
Operating and Other Expenses | (3,489 | ) | (3,536 | ) | (3,090 | ) | ||||||||||||
Net Income | 1,264 | 1,390 | 717 | |||||||||||||||
Net Income attributable to TransCanada | 522 | 597 | 257 | |||||||||||||||
at December 31 | 2014 | 2013 | ||||||||||||||||
(millions of Canadian dollars) | ||||||||||||||||||
Balance Sheet | ||||||||||||||||||
Current assets | 1,412 | 1,500 | ||||||||||||||||
Non current assets | 12,260 | 12,158 | ||||||||||||||||
Current liabilities | (1,067 | ) | (1,117 | ) | ||||||||||||||
Non current liabilities | (3,255 | ) | (2,507 | ) |
RATEREGULATED_BUSINESSES_Table
RATE-REGULATED BUSINESSES (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Regulated Operations [Abstract] | |||||||||
Schedule of regulatory assets and liabilities | |||||||||
at December 31 | 2014 | 2013 | Remaining | ||||||
Recovery/ | |||||||||
Settlement | |||||||||
(millions of Canadian dollars) | Period (years) | ||||||||
Regulatory Assets | |||||||||
Deferred income taxes1 | 1,001 | 1,149 | n/a | ||||||
Operating and debt-service regulatory assets2 | 4 | 16 | 1 | ||||||
Pensions and other post retirement benefits3 | 236 | 190 | n/a | ||||||
Long Term Adjustment Account4 | — | 354 | 31 | ||||||
Other5 | 72 | 68 | n/a | ||||||
1,313 | 1,777 | ||||||||
Less: Current portion included in Other Current Assets (Note 5) | 16 | 42 | |||||||
1,297 | 1,735 | ||||||||
Regulatory Liabilities | |||||||||
Foreign exchange on long-term debt6 | 42 | 84 | 15-Jan | ||||||
Operating and debt-service regulatory liabilities2 | 21 | 5 | 1 | ||||||
ANR-related post-employment and retirement benefits other than pension7 | 117 | 104 | n/a | ||||||
Long Term Adjustment Account4 | 64 | — | 44 | ||||||
Other5 | 49 | 43 | n/a | ||||||
293 | 236 | ||||||||
Less: Current portion included in Accounts Payable and Other (Note 13) | 30 | 7 | |||||||
263 | 229 | ||||||||
1 | These regulatory assets are underpinned by non-cash transactions or are recovered without an allowance for return as approved by the regulator. Accordingly, these regulatory assets are not included in rate base and do not yield a return on investment during the recovery period. | ||||||||
2 | Operating and debt-service regulatory assets and liabilities represent the accumulation of cost and revenue variances approved by the regulatory authority for inclusion in determining tolls for the following calendar year. Pre-tax operating results in 2014 would have been $28 million higher (2013 – $76 million higher; 2012 - $50 million lower) had these amounts not been recorded as regulatory assets and liabilities. | ||||||||
3 | These balances represent the regulatory offset to pension plan and other post retirement obligations to the extent the amounts are expected to be collected from customers in future rates. The balances are excluded from the rate base and do not earn a return on investment. Pre-tax operating results in 2014 would have been $46 million lower (2013 – $171 million higher; 2012 - $61 million lower) had these amounts not been recorded as regulatory assets and liabilities. | ||||||||
4 | The LTAA was established in compliance with the NEB 2013 Decision which is comprised of amounts that were deferred and recoverable in future years. The TSA, also established in the NEB 2013 Decision, includes the variances between revenue and costs. A positive balance in the TSA was realized in 2013 and 2014 and, as specified in the NEB 2013 Decision and the NEB 2014 Decision, the TSA, net of incentive earnings, was combined with the LTAA on December 31, 2013 and 2014. | ||||||||
5 | Pre-tax operating results in 2014 would have been $2 million higher (2013 – $2 million higher; 2012 - $66 million higher) had these amounts not been recorded as regulatory assets and liabilities. | ||||||||
6 | Foreign exchange on long-term debt of the NGTL System and Foothills represents the variance resulting from revaluing foreign currency-denominated debt instruments to the current foreign exchange rate from the historical foreign exchange rate at the time of issue. Foreign exchange gains and losses realized when foreign debt matures or is redeemed early are expected to be recovered or refunded through the determination of future tolls. In the absence of RRA, GAAP would have required the inclusion of these unrealized gains or losses in Net Income. | ||||||||
7 | Under the terms of the settlement of ANR’s last rate settlement, ANR will be required to make refunds to its customers, pursuant to a refund plan to be approved by FERC in a future rate proceeding, of those amounts in the postretirement benefit trust fund that have not been used to pay benefits to its employees. This regulatory liability represents the difference between the amount collected in rates and the amount of postretirement benefits expense. ANR can but is not required to file for new rates. Therefore, the settlement/recovery period is not determinable. Pre-tax operating results in 2014 would have been $13 million higher (2013 – $16 million higher; 2012 - $8 million higher) had these amounts not been recorded as regulatory assets and liabilities. |
GOODWILL_Tables
GOODWILL (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
GOODWILL | |||||||||
Schedule of goodwill recorded on the entity's acquisitions in the U.S. | The Company has recorded the following Goodwill on its acquisitions in the U.S.: | ||||||||
(millions of Canadian dollars) | Natural Gas | Energy | Total | ||||||
Pipelines | |||||||||
Balance at January 1, 2013 | 2,635 | 823 | 3,458 | ||||||
Foreign exchange rate changes | 181 | 57 | 238 | ||||||
Balance at December 31, 2013 | 2,816 | 880 | 3,696 | ||||||
Foreign exchange rate changes | 258 | 80 | 338 | ||||||
Balance at December 31, 2014 | 3,074 | 960 | 4,034 | ||||||
INTANGIBLE_AND_OTHER_ASSETS_Ta
INTANGIBLE AND OTHER ASSETS (Tables) | 12 Months Ended | |||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||
INTANGIBLES AND OTHER ASSETS | ||||||||||||||||||
Schedule of intangible and other assets | ||||||||||||||||||
at December 31 | 2014 | 2013 | ||||||||||||||||
(millions of Canadian dollars) | ||||||||||||||||||
Capital projects under development | 1,286 | 571 | ||||||||||||||||
PPAs | 272 | 324 | ||||||||||||||||
Deferred income tax assets and charges (Note 16) | 180 | 225 | ||||||||||||||||
Loans and advances1 | 167 | 183 | ||||||||||||||||
Fair value of derivative contracts (Note 23) | 93 | 112 | ||||||||||||||||
Employee post-retirement benefits (Note 22) | 14 | 16 | ||||||||||||||||
Other | 692 | 524 | ||||||||||||||||
2,704 | 1,955 | |||||||||||||||||
1 | TransCanada held a note receivable from the seller of Ravenswood of $213 million (US$184 million) and $226 million (US$212 million) as at December 31, 2014 and at December 31, 2013, respectively which bears interest at 6.75 per cent and matures in 2040. The current portion included in Other Current Assets was $46 million (US$40 million) at December 31, 2014, and $43 million (US$40 million) at December 31, 2013. | |||||||||||||||||
Schedule of amounts related to PPAs included in Intangible and Other Assets | The following amounts related to PPAs are included in Intangible and Other Assets: | |||||||||||||||||
2014 | 2013 | |||||||||||||||||
at December 31 | Cost | Accumulated | Net Book | Cost | Accumulated | Net Book | ||||||||||||
(millions of Canadian dollars) | Amortization | Value | Amortization | Value | ||||||||||||||
Sheerness | 585 | 351 | 234 | 585 | 312 | 273 | ||||||||||||
Sundance A | 225 | 187 | 38 | 225 | 174 | 51 | ||||||||||||
810 | 538 | 272 | 810 | 486 | 324 | |||||||||||||
NOTES_PAYABLE_Tables
NOTES PAYABLE (Tables) | 12 Months Ended | |||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||
Short-term Debt [Abstract] | ||||||||||||||||||
Schedule of notes payable | ||||||||||||||||||
2014 | 2013 | |||||||||||||||||
(millions of Canadian dollars) | Outstanding December 31 | Weighted | Outstanding December 31 | Weighted | ||||||||||||||
Average | Average | |||||||||||||||||
Interest Rate | Interest Rate | |||||||||||||||||
per Annum | per Annum | |||||||||||||||||
at December 31 | at December 31 | |||||||||||||||||
Canadian dollars | 1,540 | 1.2 | % | 751 | 1.2 | % | ||||||||||||
U.S. dollars (2014 - US$800; 2013 – US$1,025) | 927 | 0.7 | % | 1,091 | 0.3 | % | ||||||||||||
2,467 | 1,842 | |||||||||||||||||
Schedule of credit facilities | These unsecured credit facilities included the following: | |||||||||||||||||
year ended December 31 | ||||||||||||||||||
at December 31, 2014 | 2014 | 2013 | 2012 | |||||||||||||||
Amount | Unused Capacity | Borrower | For | Matures | Cost to maintain | |||||||||||||
(millions of Canadian dollars) | ||||||||||||||||||
$3 billion | $3 billion | TCPL | Committed, syndicated, revolving, extendible TCPL credit facility | Dec-19 | 6 | 4 | 4 | |||||||||||
US$1 billion | US$1 billion | TCPL USA | Committed, syndicated, revolving, extendible TCPL USA credit facility, guaranteed by TCPL | Nov-15 | 2 | 1 | 1 | |||||||||||
US$1 billion | US$1 billion | TAIL | Committed, syndicated, revolving, extendible TAIL credit facility, guaranteed by TCPL | Nov-15 | 1 | — | — | |||||||||||
$1.4 billion | $0.6 billion | TCPL/TCPL USA | Supports the issuance of letters of credit and provides additional liquidity | Demand | — | — | — | |||||||||||
ACCOUNTS_PAYABLE_AND_OTHER_Tab
ACCOUNTS PAYABLE AND OTHER (Tables) | 12 Months Ended | |||||
Dec. 31, 2014 | ||||||
Payables and Accruals [Abstract] | ||||||
Schedule of accounts payable and other | ||||||
at December 31 | 2014 | 2013 | ||||
(millions of Canadian dollars) | ||||||
Trade payables | 1,624 | 866 | ||||
Fair value of derivative contracts (Note 23) | 749 | 357 | ||||
Dividends payable | 359 | 338 | ||||
Deferred Income Tax Liabilities (Note 16) | 4 | 26 | ||||
Regulatory Liabilities (Note 9) | 30 | 7 | ||||
Liabilities related to assets held for sale (Note 6) | — | 5 | ||||
Other | 130 | 556 | ||||
2,896 | 2,155 | |||||
OTHER_LONGTERM_LIABILITIES_Tab
OTHER LONG-TERM LIABILITIES (Tables) | 12 Months Ended | |||||
Dec. 31, 2014 | ||||||
Deferred Costs, Noncurrent [Abstract] | ||||||
Schedule of deferred amounts | ||||||
at December 31 | 2014 | 2013 | ||||
(millions of Canadian dollars) | ||||||
Employee post-retirement benefit (Note 22) | 444 | 244 | ||||
Fair value of derivative contracts (Note 23) | 411 | 255 | ||||
Asset retirement obligations | 98 | 83 | ||||
Guarantees (Note 26) | 15 | 18 | ||||
Other | 84 | 56 | ||||
1,052 | 656 | |||||
LONGTERM_DEBT_Tables
LONG-TERM DEBT (Tables) | 12 Months Ended | |||||||||||||
Dec. 31, 2014 | ||||||||||||||
Long-term Debt, Unclassified [Abstract] | ||||||||||||||
Schedule of long-term debt | The Company issued Long-Term Debt over the last three years ended December 31 as follows: | |||||||||||||
(millions of Canadian dollars, unless otherwise noted) | ||||||||||||||
Company | Issue date | Type | Maturity date | Amount | Interest Rate | |||||||||
TRANSCANADA PIPELINES LIMITED | ||||||||||||||
Feb-14 | Senior Unsecured Notes | Mar-34 | US 1,250 | 4.63 | % | |||||||||
Oct-13 | Senior Unsecured Notes | Oct-23 | US 625 | 3.75 | % | |||||||||
Oct-13 | Senior Unsecured Notes | Oct-43 | US 625 | 5 | % | |||||||||
Jul-13 | Senior Unsecured Notes | Jun-16 | US 500 | Floating | ||||||||||
Jul-13 | Medium-Term Notes | Jul-23 | 450 | 3.69 | % | |||||||||
Jul-13 | Medium-Term Notes | Nov-41 | 300 | 4.55 | % | |||||||||
Jan-13 | Senior Unsecured Notes | Jan-16 | US 750 | 0.75 | % | |||||||||
Aug-12 | Senior Unsecured Notes | Aug-22 | US 1,000 | 2.5 | % | |||||||||
Mar-12 | Senior Unsecured Notes | Mar-15 | US 500 | 0.88 | % | |||||||||
TC PIPELINES, LP | ||||||||||||||
Jul-13 | Unsecured Term Loan Facility | Jul-18 | US 500 | Floating | ||||||||||
2014 | 2013 | |||||||||||||
Outstanding loan amounts | Maturity Dates | Outstanding December 31 | Interest | Outstanding December 31 | Interest | |||||||||
(millions of Canadian dollars) | Rate1 | Rate1 | ||||||||||||
TRANSCANADA PIPELINES LIMITED | ||||||||||||||
Debentures | ||||||||||||||
Canadian dollars | 2015 to 2020 | 749 | 10.9 | % | 874 | 10.9 | % | |||||||
U.S. dollars (2014 and 2013 US$400) | 2021 | 464 | 9.9 | % | 425 | 9.9 | % | |||||||
Medium-Term Notes | ||||||||||||||
Canadian dollars | 2016 to 2041 | 4,048 | 5.7 | % | 4,799 | 5.7 | % | |||||||
Senior Unsecured Notes | ||||||||||||||
U.S. dollars (2014 – US$13,526; 2013 – US$12,276) | 2015 to 2043 | 15,655 | 5 | % | 13,027 | 5 | % | |||||||
20,916 | 19,125 | |||||||||||||
NOVA GAS TRANSMISSIONÂ LTD. | ||||||||||||||
Debentures and Notes | ||||||||||||||
Canadian dollars2 | 2016 to 2024 | 325 | 11.5 | % | 378 | 11.5 | % | |||||||
U.S. dollars (2014 and 2013 – US$200) | 2023 | 232 | 7.9 | % | 213 | 7.9 | % | |||||||
Medium-Term Notes | ||||||||||||||
Canadian dollars | 2025 to 2030 | 504 | 7.4 | % | 504 | 7.4 | % | |||||||
U.S. dollars (2014 and 2013 – US$33) | 2026 | 38 | 7.5 | % | 34 | 7.5 | % | |||||||
1,099 | 1,129 | |||||||||||||
ANR PIPELINE COMPANY | ||||||||||||||
Senior Unsecured Notes | ||||||||||||||
U.S. dollars (2014 and 2013 – US$432) | 2021 to 2025 | 502 | 8.9 | % | 459 | 8.9 | % | |||||||
GAS TRANSMISSION NORTHWEST CORPORATION | ||||||||||||||
Senior Unsecured Notes | ||||||||||||||
U.S. dollars (2014 and 2013 – US$325) | 2015 to 2035 | 377 | 5.5 | % | 346 | 5.5 | % | |||||||
TC PIPELINES, LP | ||||||||||||||
Unsecured Loan | ||||||||||||||
U.S. dollars (2014 – US$330; 2013 – US$380) | 2017 | 383 | 1.4 | % | 404 | 1.4 | % | |||||||
Unsecured Term Loan Facility | ||||||||||||||
U.S. dollars (2014 – US$500; 2013 – US$500) | 2015 to 2018 | 580 | 1.4 | % | 532 | 1.4 | % | |||||||
Senior Unsecured Notes | ||||||||||||||
U.S. dollars (2014 and 2013 – US$350) | 2021 | 405 | 4.7 | % | 372 | 4.7 | % | |||||||
1,368 | 1,308 | |||||||||||||
GREAT LAKES GAS TRANSMISSION | ||||||||||||||
LIMITED PARTNERSHIP | ||||||||||||||
Senior Unsecured Notes | ||||||||||||||
U.S. dollars (2014 – US$316; 2013 – US$335) | 2018 to 2030 | 367 | 7.8 | % | 356 | 7.8 | % | |||||||
TUSCARORA GAS TRANSMISSION COMPANY | ||||||||||||||
Senior Secured Notes | ||||||||||||||
U.S. dollars (2014 – US$20; 2013 – US$24) | 2017 | 23 | 4 | % | 25 | 4 | % | |||||||
PORTLAND NATURAL GAS TRANSMISSION SYSTEM | ||||||||||||||
Senior Secured Notes3 | ||||||||||||||
U.S. dollars (2014 – US$90; 2013 – US$110) | 2018 | 105 | 6.1 | % | 117 | 6.1 | % | |||||||
24,757 | 22,865 | |||||||||||||
Less: Current Portion of Long-Term Debt | 1,797 | 973 | ||||||||||||
22,960 | 21,892 | |||||||||||||
1 | Interest rates are the effective interest rates except for those pertaining to Long-Term Debt issued for the Company's Canadian regulated natural gas operations, in which case the weighted average interest rate is presented as approved by the regulators. Weighted average and effective interest rates are stated as at the respective outstanding dates. | |||||||||||||
2 | Debentures issued by NGTL in the amount of $225 million have retraction provisions that entitle the holders to require redemption of up to eight per cent of the then outstanding principal plus accrued and unpaid interest on specified repayment dates. No redemptions were made in 2014 or 2013. | |||||||||||||
3 | Secured by shipper transportation contracts, existing and new guarantees, letters of credit and collateral requirements. | |||||||||||||
Schedule of repayments of long-term debt | Principal repayments on the Long-Term Debt of the Company for the next five years are approximately as follows: | |||||||||||||
(millions of Canadian dollars) | 2015 | 2016 | 2017 | 2018 | 2019 | |||||||||
Principal repayments on Long-Term Debt | 1,797 | 2,225 | 846 | 1,766 | 1,007 | |||||||||
Schedule of long-term debt, retired | The Company retired Long-Term Debt over the last three years ended December 31 as follows: | |||||||||||||
(millions of Canadian dollars, unless otherwise noted) | ||||||||||||||
Company | Retirement date | Type | Amount | Interest Rate | ||||||||||
TRANSCANADA PIPELINES LIMITED | ||||||||||||||
Jun-14 | Debentures | 125 | 11.1 | % | ||||||||||
Feb-14 | Medium-Term Notes | 300 | 5.05 | % | ||||||||||
Jan-14 | Medium-Term Notes | 450 | 5.65 | % | ||||||||||
Aug-13 | Senior Unsecured Notes | US 500 | 5.05 | % | ||||||||||
Jun-13 | Senior Unsecured Notes | US 350 | 4 | % | ||||||||||
May-12 | Senior Unsecured Notes | US 200 | 8.63 | % | ||||||||||
NOVA GAS TRANSMISSION LTD. | ||||||||||||||
Jun-14 | Debentures | 53 | 11.2 | % | ||||||||||
Dec-12 | Debentures | US 175 | 8.5 | % | ||||||||||
Schedule of interest expense | ||||||||||||||
year ended December 31 | 2014 | 2013 | 2012 | |||||||||||
(millions of Canadian dollars) | ||||||||||||||
Interest on Long-Term Debt | 1,317 | 1,216 | 1,190 | |||||||||||
Interest on Junior Subordinated Notes (Note 17) | 70 | 65 | 63 | |||||||||||
Interest on short-term debt | 15 | 12 | 16 | |||||||||||
Capitalized interest | (259 | ) | (287 | ) | (300 | ) | ||||||||
Amortization and other financial charges1 | 55 | (21 | ) | 7 | ||||||||||
1,198 | 985 | 976 | ||||||||||||
1 | Amortization and other financial charges includes amortization of transaction costs and debt discounts calculated using the effective interest method and changes in the fair value of derivatives used to manage the Company's exposure to changes in interest rates. |
INCOME_TAXES_Tables
INCOME TAXES (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Income Tax Disclosure [Abstract] | |||||||||
Schedule of provision for income taxes | |||||||||
year ended December 31 | 2014 | 2013 | 2012 | ||||||
(millions of Canadian dollars) | |||||||||
Current | |||||||||
Canada | 103 | 27 | 167 | ||||||
Foreign | 42 | 16 | 14 | ||||||
145 | 43 | 181 | |||||||
Deferred | |||||||||
Canada | 309 | 245 | 69 | ||||||
Foreign | 377 | 323 | 216 | ||||||
686 | 568 | 285 | |||||||
Income Tax Expense | 831 | 611 | 466 | ||||||
Schedule of geographic components of income | |||||||||
year ended December 31 | 2014 | 2013 | 2012 | ||||||
(millions of Canadian dollars) | |||||||||
Canada | 1,146 | 1,224 | 842 | ||||||
Foreign | 1,678 | 1,298 | 1,096 | ||||||
Income before Income Taxes | 2,824 | 2,522 | 1,938 | ||||||
Schedule of reconciliation of income tax expense | |||||||||
year ended December 31 | 2014 | 2013 | 2012 | ||||||
(millions of Canadian dollars) | |||||||||
Income before Income Taxes | 2,824 | 2,522 | 1,938 | ||||||
Federal and provincial statutory tax rate | 25 | % | 25 | % | 25 | % | |||
Expected income tax expense | 706 | 631 | 485 | ||||||
Income tax differential related to regulated operations | 129 | (13 | ) | 41 | |||||
Higher/(lower) effective foreign tax rates | 25 | 33 | (12 | ) | |||||
Income from equity investments and non-controlling interests | (38 | ) | (28 | ) | (27 | ) | |||
Tax legislation change | — | (25 | ) | — | |||||
Other | 9 | 13 | (21 | ) | |||||
Actual Income Tax Expense | 831 | 611 | 466 | ||||||
Schedule of deferred income tax assets and liabilities and amounts classified in the consolidated balance sheet | |||||||||
at December 31 | 2014 | 2013 | |||||||
(millions of Canadian dollars) | |||||||||
Deferred Income Tax Assets | |||||||||
Operating loss carryforwards | 1,266 | 826 | |||||||
Deferred amounts | 215 | 223 | |||||||
Unrealized foreign exchange losses on long-term debt | 140 | — | |||||||
Financial Instruments | 104 | — | |||||||
Other | 248 | 128 | |||||||
1,973 | 1,177 | ||||||||
Less: Valuation allowance1 | 125 | — | |||||||
1,848 | 1,177 | ||||||||
Deferred Income Tax Liabilities | |||||||||
Difference in accounting and tax bases of plant, property and equipment and PPAs | 5,548 | 4,245 | |||||||
Equity investments | 648 | 682 | |||||||
Taxes on future revenue requirement | 253 | 291 | |||||||
Unrealized foreign exchange gains on long-term debt | — | 35 | |||||||
Other | 71 | 170 | |||||||
6,520 | 5,423 | ||||||||
Net Deferred Income Tax Liabilities | 4,672 | 4,246 | |||||||
1 | A valuation allowance was recorded in 2014 as the Company believes that it is more likely than not that the tax benefit related to the unrealized foreign exchange losses on the long term debt will not be realized in the future. | ||||||||
The above deferred tax amounts have been classified in the Consolidated Balance Sheet as follows: | |||||||||
at December 31 | 2014 | 2013 | |||||||
(millions of Canadian dollars) | |||||||||
Deferred Income Tax Assets | |||||||||
Other Current Assets (Note 5) | 427 | 119 | |||||||
Intangible and Other Assets (Note 11) | 180 | 225 | |||||||
607 | 344 | ||||||||
Deferred Income Tax Liabilities | |||||||||
Accounts Payable and Other (Note 13) | 4 | 26 | |||||||
Deferred Income Tax Liabilities | 5,275 | 4,564 | |||||||
5,279 | 4,590 | ||||||||
Net Deferred Income Tax Liabilities | 4,672 | 4,246 | |||||||
Schedule of reconciliation of the annual changes in the total unrecognized tax benefit | Below is the reconciliation of the annual changes in the total unrecognized tax benefit: | ||||||||
at December 31 | 2014 | 2013 | 2012 | ||||||
(millions of Canadian dollars) | |||||||||
Unrecognized tax benefits at beginning of year | 23 | 49 | 52 | ||||||
Gross increases – tax positions in prior years | 3 | 3 | 2 | ||||||
Gross decreases – tax positions in prior years | (8 | ) | (28 | ) | (6 | ) | |||
Gross increases – tax positions in current year | 1 | 2 | 9 | ||||||
Lapses of statute of limitations | (1 | ) | (3 | ) | (8 | ) | |||
Unrecognized tax benefits at end of year | 18 | 23 | 49 | ||||||
JUNIOR_SUBORDINATED_NOTES_Tabl
JUNIOR SUBORDINATED NOTES (Tables) | 12 Months Ended | |||||||||||||
Dec. 31, 2014 | ||||||||||||||
Junior Subordinated Notes [Abstract] | ||||||||||||||
Schedule of junior subordinated notes | ||||||||||||||
2014 | 2013 | |||||||||||||
Outstanding loan amount | Maturity | Outstanding December 31 | Effective | Outstanding December 31 | Effective | |||||||||
(millions of Canadian dollars) | Date | Interest Rate | Interest Rate | |||||||||||
TRANSCANADA PIPELINES LIMITED | ||||||||||||||
U.S. dollars (2014 and 2013 – US$1,000) | 2067 | 1,160 | 6.5 | % | 1,063 | 6.5 | % | |||||||
NONCONTROLLING_INTERESTS_Table
NON-CONTROLLING INTERESTS (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Noncontrolling Interest [Abstract] | |||||||||
Schedule of the Company's non-controlling interests included in the Consolidated Financial Statements | The Company's Non-Controlling Interests included in the Consolidated Balance Sheet were as follows: | ||||||||
at December 31 | 2014 | 2013 | |||||||
(millions of Canadian dollars) | |||||||||
Non-controlling interest in TC PipeLines, LP | 1,479 | 1,323 | |||||||
Non-controlling interest in Portland | 104 | 94 | |||||||
Preferred shares of TCPL | — | 194 | |||||||
1,583 | 1,611 | ||||||||
The Company's Non-Controlling Interests included in the Consolidated Statement of Income were as follows: | |||||||||
year ended December 31 | 2014 | 2013 | 2012 | ||||||
(millions of Canadian dollars) | |||||||||
Non-controlling interest in TC PipeLines, LP | 136 | 93 | 91 | ||||||
Non-controlling interest in Portland | 15 | 12 | 5 | ||||||
Preferred shares of TCPL | 2 | 20 | 22 | ||||||
153 | 125 | 118 | |||||||
COMMON_SHARES_Tables
COMMON SHARES (Tables) | 12 Months Ended | |||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||
Common Stock, Number of Shares, Par Value and Other Disclosures [Abstract] | ||||||||||||||||||
Schedule of common shares | ||||||||||||||||||
Number of | Amount | |||||||||||||||||
Shares | ||||||||||||||||||
(thousands) | (millions of Canadian dollars) | |||||||||||||||||
Outstanding at January 1, 2012 | 703,861 | 12,011 | ||||||||||||||||
Exercise of options | 1,600 | 58 | ||||||||||||||||
Outstanding at December 31, 2012 | 705,461 | 12,069 | ||||||||||||||||
Exercise of options | 1,980 | 80 | ||||||||||||||||
Outstanding at December 31, 2013 | 707,441 | 12,149 | ||||||||||||||||
Exercise of options | 1,221 | 53 | ||||||||||||||||
Outstanding at December 31, 2014 | 708,662 | 12,202 | ||||||||||||||||
Schedule of weighted average shares | ||||||||||||||||||
Weighted Average Common Shares Outstanding | 2014 | 2013 | 2012 | |||||||||||||||
(millions) | ||||||||||||||||||
  Basic | 708 | 706.7 | 704.6 | |||||||||||||||
  Diluted | 709.6 | 707.7 | 705.7 | |||||||||||||||
Schedule of stock options activity | ||||||||||||||||||
Number of | Weighted | Options | ||||||||||||||||
Options | Average | Exercisable | ||||||||||||||||
Exercise | ||||||||||||||||||
Prices | ||||||||||||||||||
(thousands) | (thousands) | |||||||||||||||||
Outstanding at January 1, 2012 | 7,100 | $35.44 | 5,165 | |||||||||||||||
Granted | 1,978 | $42.03 | ||||||||||||||||
Exercised | (1,600 | ) | $33.13 | |||||||||||||||
Forfeited | (44 | ) | $36.55 | |||||||||||||||
Outstanding at December 31, 2012 | 7,434 | $37.69 | 4,588 | |||||||||||||||
Granted | 1,939 | $47.09 | ||||||||||||||||
Exercised | (1,980 | ) | $36.12 | |||||||||||||||
Outstanding at December 31, 2013 | 7,393 | $40.57 | 3,954 | |||||||||||||||
Granted | 2,292 | $49.03 | ||||||||||||||||
Exercised | (1,221 | ) | $43.00 | |||||||||||||||
Outstanding at December 31, 2014 | 8,464 | $43.17 | 4,902 | |||||||||||||||
Schedule of stock options outstanding and exercisable by the range of exercise price | Stock options outstanding at December 31, 2014 were as follows: | |||||||||||||||||
Options Outstanding | Options Exercisable | |||||||||||||||||
Range of | Number of | Weighted | Weighted | Number of | Weighted | Weighted | ||||||||||||
Exercise Prices | Options | Average | Average | Options | Average | Average | ||||||||||||
Exercise | Remaining | Exercise | Remaining | |||||||||||||||
Price | Contractual | Price | Contractual | |||||||||||||||
Life | Life | |||||||||||||||||
(thousands) | (years) | (thousands) | (years) | |||||||||||||||
$30.10 to $36.26 | 1,410 | $33.85 | 1.7 | 1,410 | $33.85 | 1.7 | ||||||||||||
$36.90 to $41.65 | 1,101 | $38.24 | 3.1 | 1,101 | $38.24 | 3.1 | ||||||||||||
$41.95 to $45.29 | 1,819 | $42.04 | 4.2 | 1,464 | $42.02 | 4.2 | ||||||||||||
$47.09 | 1,842 | $47.09 | 5.1 | 847 | $47.09 | 5.1 | ||||||||||||
$49.03 | 2,292 | $49.03 | 6.2 | 80 | $49.03 | 6.2 | ||||||||||||
8,464 | $43.17 | 4.3 | 4,902 | $39.81 | 3.3 | |||||||||||||
Schedule of options valuation assumptions | The Company used a binomial model for determining the fair value of options granted applying the following weighted average assumptions: | |||||||||||||||||
year ended December 31 | 2014 | 2013 | 2012 | |||||||||||||||
Expected life (years) | 6 | 6 | 5.9 | |||||||||||||||
Interest rate | 1.8 | % | 1.7 | % | 1.6 | % | ||||||||||||
Volatility1 | 17 | % | 18 | % | 19 | % | ||||||||||||
Dividend yield | 3.8 | % | 3.7 | % | 4.2 | % | ||||||||||||
Forfeiture rate | 5 | % | 15 | % | 15 | % | ||||||||||||
1 | Volatility is derived based on the average of both the historical and implied volatility of the Company's common shares. | |||||||||||||||||
Schedule of additional option information | The following table summarizes additional stock option information: | |||||||||||||||||
year ended December 31 | 2014 | 2013 | 2012 | |||||||||||||||
(millions of Canadian dollars, unless noted otherwise) | ||||||||||||||||||
Total intrinsic value of options exercised | $68 | $25 | $18 | |||||||||||||||
Fair value of options that have vested | $113 | $65 | $49 | |||||||||||||||
Total options vested | 2.0 million | 1.3 million | 1.0 million |
PREFERRED_SHARES_Tables
PREFERRED SHARES (Tables) | 12 Months Ended | |||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||
Preferred Stock, Number of Shares, Par Value and Other Disclosures [Abstract] | ||||||||||||||||||||||||
Schedule of preferred shares | ||||||||||||||||||||||||
at December 31 | Number of | Current Yield | Annual Dividend Per Share1 | Redemption Price Per Share2 | Redemption and Conversion Option Date 2,3 | Right to Convert Into 3,4 | 2014 | 2013 | ||||||||||||||||
Shares | ||||||||||||||||||||||||
Authorized and | ||||||||||||||||||||||||
Outstanding | ||||||||||||||||||||||||
Cumulative First Preferred Shares5 | (thousands) | (millions of | (millions of | |||||||||||||||||||||
Canadian dollars)6 | Canadian dollars)6 | |||||||||||||||||||||||
Series 1 | 9,498 | 3.27 | % | $0.82 | $25.00 | 31-Dec-19 | Series 2 | 233 | 539 | |||||||||||||||
Series 2 | 12,502 | Floating7 | Floating | $25.50 | 31-Dec-19 | Series 1 | 306 | — | ||||||||||||||||
Series 3 | 14,000 | 4 | % | $1.00 | $25.00 | 30-Jun-15 | Series 4 | 343 | 343 | |||||||||||||||
Series 5 | 14,000 | 4.4 | % | $1.10 | $25.00 | 30-Jan-16 | Series 6 | 342 | 342 | |||||||||||||||
Series 7 | 24,000 | 4 | % | $1.00 | $25.00 | 30-Apr-19 | Series 8 | 589 | 589 | |||||||||||||||
Series 9 | 18,000 | 4.25 | % | $1.06 | $25.00 | 30-Oct-19 | Series 10 | 442 | — | |||||||||||||||
2,255 | 1,813 | |||||||||||||||||||||||
1 | The holder is entitled to receive a fixed, cumulative, quarterly preferential dividend, as declared by the Board with the exception of Series 2 preferred shares. The holders of Series 2 preferred shares are entitled to receive quarterly, floating rate, cumulative, preferential dividends as declared by the Board. | |||||||||||||||||||||||
2 | Series 2 preferred shares are redeemable by TransCanada at any time for $25.50 per share plus all accrued and unpaid dividends on such redemption date, unless redeemed on a designated redemption option date, or any fifth anniversary thereafter, in which case they are redeemable at $25.00 per share plus all accrued and unpaid dividends. For all other series of preferred shares, TransCanada may, at its option, redeem all or a portion of the outstanding shares for the redemption price per share, plus all accrued and unpaid dividends on the redemption option date and on every fifth anniversary thereafter. | |||||||||||||||||||||||
3 | The holder will have the right, subject to certain conditions, to convert their first preferred shares of a specified series into first preferred shares of another specified series on the conversion option date and every fifth anniversary thereafter. | |||||||||||||||||||||||
4 | With the exception of Series 1 preferred shares, if converted each series will be entitled to receive floating rate, cumulative, quarterly, preferential dividends per share at an annualized rate equal to the 90-day Government of Canada Treasury bill rate + 1.92 per cent (Series 2), 1.28 per cent (Series 4), 1.54 per cent (Series 6), 2.38 per cent (Series 8), and 2.35 per cent (Series 10). Holders of Series 1 preferred shares will receive fixed, cumulative, quarterly preferential dividends if converted. | |||||||||||||||||||||||
5 | With the exception of Series 2 preferred shares, and where the redemption and/or conversion option is not exercised on a designated conversion date, the dividend rate on the fixed rate, cumulative, quarterly, preferential dividends will reset on the redemption and conversion option date and every fifth year thereafter to an annualized rate equal to the then five-year Government of Canada bond yield + 1.92 per cent (Series 1), 1.28 per cent (Series 3), 1.54 per cent (Series 5), 2.38 per cent (Series 7), and 2.35 per cent (Series 9). Holders of Series 2 preferred shares will receive floating rate, cumulative, quarterly, preferential dividends. | |||||||||||||||||||||||
6 | Net of underwriting commissions and deferred income taxes. | |||||||||||||||||||||||
7 | Commencing December 31, 2014, the floating quarterly dividend rate for the Series 2 preferred shares is 2.82 per cent and will reset each quarter going forward. |
OTHER_COMPREHENSIVE_INCOME_AND1
OTHER COMPREHENSIVE INCOME AND ACCUMULATED OTHER COMPREHENSIVE LOSS (Tables) | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
Equity [Abstract] | ||||||||||||||||
Schedule of components of other comprehensive income | Components of OCI including Non-Controlling Interests and the related tax effects are as follows: | |||||||||||||||
year ended December 31, 2014 | Before tax amount | Income tax recovery/(expense) | Net of tax amount | |||||||||||||
(millions of Canadian dollars) | ||||||||||||||||
Foreign currency translation gains on net investments in foreign operations | 462 | 55 | 517 | |||||||||||||
Change in fair value of net investment hedges | (373 | ) | 97 | (276 | ) | |||||||||||
Change in fair value of cash flow hedges | (118 | ) | 49 | (69 | ) | |||||||||||
Reclassification to Net Income of gains and losses on cash flow hedges | (95 | ) | 40 | (55 | ) | |||||||||||
Unrealized actuarial gains and losses on pension and other post-retirement benefit plans | (146 | ) | 44 | (102 | ) | |||||||||||
Reclassification to Net Income of actuarial gains and losses and prior service costs on pension and other post-retirement benefit plans | 25 | (7 | ) | 18 | ||||||||||||
Other comprehensive loss on Equity Investments | (272 | ) | 68 | (204 | ) | |||||||||||
Other comprehensive loss | (517 | ) | 346 | (171 | ) | |||||||||||
year ended December 31, 2013 | Before tax amount | Income tax | Net of tax amount | |||||||||||||
(millions of Canadian dollars) | recovery/(expense) | |||||||||||||||
Foreign currency translation gains on net investments in foreign operations | 269 | 114 | 383 | |||||||||||||
Change in fair value of net investment hedges | (323 | ) | 84 | (239 | ) | |||||||||||
Change in fair value of cash flow hedges | 121 | (50 | ) | 71 | ||||||||||||
Reclassification to Net Income of gains and losses on cash flow hedges | 60 | (19 | ) | 41 | ||||||||||||
Unrealized actuarial gains and losses on pension and other post-retirement benefit plans | 96 | (29 | ) | 67 | ||||||||||||
Reclassification to Net Income of actuarial gains and losses and prior service costs on pension and other post-retirement benefit plans | 34 | (11 | ) | 23 | ||||||||||||
Other comprehensive income on Equity Investments | 313 | (79 | ) | 234 | ||||||||||||
Other comprehensive income | 570 | 10 | 580 | |||||||||||||
year ended December 31, 2012 | Before tax amount | Income tax recovery/(expense) | Net of tax amount | |||||||||||||
(millions of Canadian dollars) | ||||||||||||||||
Foreign currency translation losses on net investments in foreign operations | (97 | ) | (32 | ) | (129 | ) | ||||||||||
Change in fair value of net investment hedges | 59 | (15 | ) | 44 | ||||||||||||
Change in fair value of cash flow hedges | 61 | (13 | ) | 48 | ||||||||||||
Reclassification to Net Income of gains and losses on cash flow hedges | 219 | (81 | ) | 138 | ||||||||||||
Unrealized actuarial gains and losses on pension and other post-retirement benefit plans | (104 | ) | 31 | (73 | ) | |||||||||||
Reclassification to Net Income of actuarial gains and losses and prior service costs on pension and other post-retirement benefit plans | 22 | — | 22 | |||||||||||||
Other comprehensive loss on Equity Investments | (93 | ) | 23 | (70 | ) | |||||||||||
Other comprehensive income/(loss) | 67 | (87 | ) | (20 | ) | |||||||||||
Schedule of changes in accumulated other comprehensive income | The changes in AOCI by component is as follows: | |||||||||||||||
Currency | Cash flow | Pension and OPEB plan adjustments | Equity Investments | Total1 | ||||||||||||
translation | hedges | |||||||||||||||
adjustments | ||||||||||||||||
AOCI Balance at January 1, 2012 | (643 | ) | (302 | ) | (236 | ) | (268 | ) | (1,449 | ) | ||||||
Other comprehensive (loss)/income before reclassifications2 | (64 | ) | 48 | (73 | ) | (67 | ) | (156 | ) | |||||||
Amounts reclassified from Accumulated Other Comprehensive Loss | — | 138 | 22 | (3 | ) | 157 | ||||||||||
Net current period other comprehensive (loss)/income | (64 | ) | 186 | (51 | ) | (70 | ) | 1 | ||||||||
AOCI Balance at December 31, 2012 | (707 | ) | (116 | ) | (287 | ) | (338 | ) | (1,448 | ) | ||||||
Other comprehensive income before reclassifications2 | 78 | 71 | 67 | 219 | 435 | |||||||||||
Amounts reclassified from Accumulated Other Comprehensive Loss | — | 41 | 23 | 15 | 79 | |||||||||||
Net current period other comprehensive income | 78 | 112 | 90 | 234 | 514 | |||||||||||
AOCI Balance at December 31, 2013 | (629 | ) | (4 | ) | (197 | ) | (104 | ) | (934 | ) | ||||||
Other comprehensive income/(loss) before reclassifications2 | 111 | (69 | ) | (102 | ) | (206 | ) | (266 | ) | |||||||
Amounts reclassified from Accumulated Other Comprehensive Loss3 | — | (55 | ) | 18 | 2 | (35 | ) | |||||||||
Net current period other comprehensive income/(loss) | 111 | (124 | ) | (84 | ) | (204 | ) | (301 | ) | |||||||
AOCI Balance at December 31, 2014 | (518 | ) | (128 | ) | (281 | ) | (308 | ) | (1,235 | ) | ||||||
1 | All amounts are net of tax. Amounts in parentheses indicate losses recorded to OCI. | |||||||||||||||
2 | OCI before reclassifications on currency translation adjustments is net of non-controlling interest gains of $130 million in 2014 (2013 - $66 million gains; 2012 - $21 million losses). | |||||||||||||||
3 | Losses related to cash flow hedges reported in AOCI and expected to be reclassified to net income in the next 12 months are estimated to be $95 million ($55 million, net of tax) at December 31, 2014. These estimates assume constant commodity prices, interest rates and foreign exchange rates over time, however, the amounts reclassified will vary based on the actual value of these factors at the date of settlement. | |||||||||||||||
Schedule of reclassifications out of accumulated other comprehensive income | Details about reclassifications out of AOCI into the Consolidated Statement of Income are as follows: | |||||||||||||||
Amounts reclassified from | Affected line item | |||||||||||||||
accumulated other | in the consolidated | |||||||||||||||
comprehensive loss1 | statement of | |||||||||||||||
year ended December 31 | 2014 | 2013 | 2012 | income | ||||||||||||
(millions of Canadian dollars) | ||||||||||||||||
Cash flow hedges | ||||||||||||||||
     Power and Natural Gas | 111 | (44 | ) | 201 | Revenue (Energy) | |||||||||||
     Interest | (16 | ) | (16 | ) | 18 | Interest Expense | ||||||||||
95 | (60 | ) | 219 | Total before tax | ||||||||||||
(40 | ) | 19 | (81 | ) | Income Tax Expense | |||||||||||
55 | (41 | ) | 138 | Net of tax | ||||||||||||
Pension and OPEB plan adjustments | ||||||||||||||||
     Amortization of actuarial loss and past service cost2 | (25 | ) | (34 | ) | (22 | ) | 2 | |||||||||
7 | 11 | — | Income Tax Expense | |||||||||||||
(18 | ) | (23 | ) | (22 | ) | Net of tax | ||||||||||
Equity Investments | ||||||||||||||||
     Equity Income | (2 | ) | (20 | ) | 5 | Income from Equity Investments | ||||||||||
— | 5 | (2 | ) | Income Tax Expense | ||||||||||||
(2 | ) | (15 | ) | 3 | Net of tax | |||||||||||
1 | All amounts in parentheses indicate expenses to the Consolidated Statement of Income. | |||||||||||||||
2 | These Accumulated Other Comprehensive Loss components are included in the computation of net benefit cost. Refer to Note 22 for additional detail. |
EMPLOYEE_POSTRETIREMENT_BENEFI1
EMPLOYEE POST-RETIREMENT BENEFITS (Tables) | 12 Months Ended | |||||||||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||||||||
Compensation and Retirement Disclosure [Abstract] | ||||||||||||||||||||||||||||||
Schedule of payments for defined benefit plans | Total cash payments for employee post-retirement benefits, consisting of cash contributed by the Company were as follows: | |||||||||||||||||||||||||||||
year ended December 31 | 2014 | 2013 | 2012 | |||||||||||||||||||||||||||
(millions of Canadian dollars) | ||||||||||||||||||||||||||||||
DB Plans | 73 | 79 | 83 | |||||||||||||||||||||||||||
Other post-retirement benefit plans | 6 | 6 | 7 | |||||||||||||||||||||||||||
Savings and DC Plans | 37 | 29 | 24 | |||||||||||||||||||||||||||
116 | 114 | 114 | ||||||||||||||||||||||||||||
Schedule of change in benefit obligations, change in plan assets, and funded status | The most recent actuarial valuation of the pension plans for funding purposes was as at January 1, 2014 and the next required valuation will be as at January 1, 2015. | |||||||||||||||||||||||||||||
at December 31 | Pension | Other | ||||||||||||||||||||||||||||
Benefit Plans | Post-Retirement | |||||||||||||||||||||||||||||
Benefit Plans | ||||||||||||||||||||||||||||||
(millions of Canadian dollars) | 2014 | 2013 | 2014 | 2013 | ||||||||||||||||||||||||||
Change in Benefit Obligation1 | ||||||||||||||||||||||||||||||
Benefit obligation – beginning of year | 2,224 | 2,142 | 191 | 186 | ||||||||||||||||||||||||||
Service cost | 85 | 84 | 2 | 2 | ||||||||||||||||||||||||||
Interest cost | 113 | 96 | 10 | 7 | ||||||||||||||||||||||||||
Employee contributions | 4 | 4 | — | — | ||||||||||||||||||||||||||
Benefits paid | (102 | ) | (83 | ) | (7 | ) | (7 | ) | ||||||||||||||||||||||
Actuarial loss/(gain) | 302 | (39 | ) | 14 | (2 | ) | ||||||||||||||||||||||||
Foreign exchange rate changes | 32 | 20 | 6 | 5 | ||||||||||||||||||||||||||
Benefit obligation – end of year | 2,658 | 2,224 | 216 | 191 | ||||||||||||||||||||||||||
Change in Plan Assets | ||||||||||||||||||||||||||||||
Plan assets at fair value – beginning of year | 2,152 | 1,825 | 35 | 32 | ||||||||||||||||||||||||||
Actual return on plan assets | 246 | 313 | 2 | 2 | ||||||||||||||||||||||||||
Employer contributions2 | 73 | 79 | 6 | 6 | ||||||||||||||||||||||||||
Employee contributions | 4 | 4 | — | — | ||||||||||||||||||||||||||
Benefits paid | (102 | ) | (83 | ) | (7 | ) | (7 | ) | ||||||||||||||||||||||
Foreign exchange rate changes | 25 | 14 | 3 | 2 | ||||||||||||||||||||||||||
Plan assets at fair value – end of year | 2,398 | 2,152 | 39 | 35 | ||||||||||||||||||||||||||
Funded Status – Plan Deficit | (260 | ) | (72 | ) | (177 | ) | (156 | ) | ||||||||||||||||||||||
1 | The benefit obligation for the Company's pension benefit plans represents the projected benefit obligation. The benefit obligation for the Company's other post-retirement benefit plans represents the accumulated post-retirement benefit obligation. | |||||||||||||||||||||||||||||
2 | Excludes $181 million in letters of credit provided to the Canadian DB Plans for funding purposes (2013 - $134 million). | |||||||||||||||||||||||||||||
Schedule of amounts recognized in the Company's Balance Sheet for its DB plans and other post-retirement benefits plans | The amounts recognized in the Company's Balance Sheet for its DB Plans and other post-retirement benefits plans are as follows: | |||||||||||||||||||||||||||||
at December 31 | Pension | Other | ||||||||||||||||||||||||||||
Benefit Plans | Post-Retirement | |||||||||||||||||||||||||||||
Benefit Plans | ||||||||||||||||||||||||||||||
(millions of Canadian dollars) | 2014 | 2013 | 2014 | 2013 | ||||||||||||||||||||||||||
Intangible and Other Assets (Note 11) | — | — | 14 | 16 | ||||||||||||||||||||||||||
Accounts Payable and Other (Note 13) | — | — | (7 | ) | — | |||||||||||||||||||||||||
Other Long-Term Liabilities (Note 14) | (260 | ) | (72 | ) | (184 | ) | (172 | ) | ||||||||||||||||||||||
(260 | ) | (72 | ) | (177 | ) | (156 | ) | |||||||||||||||||||||||
Schedule of benefit obligations in excess of fair value of plan assets | Included in the above benefit obligation and fair value of plan assets were the following amounts for plans that are not fully funded: | |||||||||||||||||||||||||||||
at December 31 | Pension | Other | ||||||||||||||||||||||||||||
Benefit Plans | Post-Retirement | |||||||||||||||||||||||||||||
Benefit Plans | ||||||||||||||||||||||||||||||
(millions of Canadian dollars) | 2014 | 2013 | 2014 | 2013 | ||||||||||||||||||||||||||
Projected benefit obligation1 | (2,658 | ) | (2,224 | ) | (191 | ) | (172 | ) | ||||||||||||||||||||||
Plan assets at fair value | 2,398 | 2,152 | — | — | ||||||||||||||||||||||||||
Funded Status – Deficit | (260 | ) | (72 | ) | (191 | ) | (172 | ) | ||||||||||||||||||||||
1 | The projected benefit obligation for the pension benefit plan differs from the accumulated benefit obligation in that it includes an assumption with respect to future compensation levels. | |||||||||||||||||||||||||||||
Schedule of accumulated benefit obligations in excess of fair value of plan assets for all DB Plans | The funded status based on the accumulated benefit obligation for all DB Plans is as follows: | |||||||||||||||||||||||||||||
at December 31 | 2014 | 2013 | ||||||||||||||||||||||||||||
(millions of Canadian dollars) | ||||||||||||||||||||||||||||||
Accumulated benefit obligation | (2,437 | ) | (2,039 | ) | ||||||||||||||||||||||||||
Plan assets at fair value | 2,398 | 2,152 | ||||||||||||||||||||||||||||
Funded Status – (Deficit)/Surplus | (39 | ) | 113 | |||||||||||||||||||||||||||
Schedule of accumulated benefit obligations in excess of fair value of plan assets for plans not fully funded | Included in the above accumulated benefit obligation and fair value of plan assets are the following amounts in respect of plans that are not fully funded. | |||||||||||||||||||||||||||||
at December 31 | 2014 | 2013 | ||||||||||||||||||||||||||||
(millions of Canadian dollars) | ||||||||||||||||||||||||||||||
Accumulated benefit obligation | (715 | ) | (569 | ) | ||||||||||||||||||||||||||
Plan assets at fair value | 597 | 537 | ||||||||||||||||||||||||||||
Funded Status – Deficit | (118 | ) | (32 | ) | ||||||||||||||||||||||||||
Schedule of the Company's pension plans weighted average asset allocations and target allocations by asset category | The Company pension plans' weighted average asset allocations and target allocations by asset category were as follows: | |||||||||||||||||||||||||||||
Asset Category | ||||||||||||||||||||||||||||||
Percentage of | Target Allocations1 | |||||||||||||||||||||||||||||
Plan Assets | ||||||||||||||||||||||||||||||
at December 31 | 2014 | 2013 | 2014 | |||||||||||||||||||||||||||
Debt securities | 31 | % | 31 | % | 25% to 35% | |||||||||||||||||||||||||
Equity securities | 69 | % | 69 | % | 50% to 70% | |||||||||||||||||||||||||
Alternatives | — | — | 5 % to 15% | |||||||||||||||||||||||||||
100 | % | 100 | % | |||||||||||||||||||||||||||
1 | Target allocations were revised in November 2013 and the investment mix is being adjusted over time accordingly. | |||||||||||||||||||||||||||||
Schedule of allocation of plan assets, employer and related party securities | Debt and equity securities include the Company's debt and common shares as follows: | |||||||||||||||||||||||||||||
at December 31 | Percentage of | |||||||||||||||||||||||||||||
Plan Assets | ||||||||||||||||||||||||||||||
(millions of Canadian dollars) | 2014 | 2013 | 2014 | 2013 | ||||||||||||||||||||||||||
Debt securities | 1 | 2 | 0.1 | % | 0.1 | % | ||||||||||||||||||||||||
Equity securities | 1 | 2 | 0.1 | % | 0.1 | % | ||||||||||||||||||||||||
Schedule of plan assets for DB Plans and other post-retirement benefits measured at fair value, which have been categorized into three categories based on a fair value hierarchy | The following table presents plan assets for DB Plans and other post-retirement benefits measured at fair value, which have been categorized into the three categories based on a fair value hierarchy. | |||||||||||||||||||||||||||||
at December 31 | Quoted Prices in | Significant Other Observable Inputs | Significant Unobservable Inputs | Total | Percentage of | |||||||||||||||||||||||||
Active Markets | (Level II) | (Level III) | Total Portfolio | |||||||||||||||||||||||||||
(Level I) | ||||||||||||||||||||||||||||||
(millions of Canadian dollars) | 2014 | 2013 | 2014 | 2013 | 2014 | 2013 | 2014 | 2013 | 2014 | 2013 | ||||||||||||||||||||
Asset Category | ||||||||||||||||||||||||||||||
Cash and Cash Equivalents | 20 | 17 | — | — | — | — | 20 | 17 | 1 | % | 1 | % | ||||||||||||||||||
Equity Securities: | ||||||||||||||||||||||||||||||
Canadian | 361 | 474 | 142 | 170 | — | — | 503 | 644 | 21 | % | 29 | % | ||||||||||||||||||
U.S. | 516 | 423 | 35 | 37 | — | — | 551 | 460 | 23 | % | 21 | % | ||||||||||||||||||
International | 218 | 36 | 147 | 330 | — | — | 365 | 366 | 15 | % | 17 | % | ||||||||||||||||||
Global | — | — | 141 | 14 | — | — | 141 | 14 | 6 | % | 1 | % | ||||||||||||||||||
Emerging | 7 | — | 80 | — | — | — | 87 | — | 3 | % | — | |||||||||||||||||||
Fixed Income Securities: | ||||||||||||||||||||||||||||||
Canadian Bonds: | ||||||||||||||||||||||||||||||
Federal | — | — | 218 | 190 | — | — | 218 | 190 | 9 | % | 9 | % | ||||||||||||||||||
Provincial | — | — | 180 | 154 | — | — | 180 | 154 | 7 | % | 7 | % | ||||||||||||||||||
Municipal | — | — | 7 | 6 | — | — | 7 | 6 | — | — | ||||||||||||||||||||
Corporate | — | — | 76 | 77 | — | — | 76 | 77 | 3 | % | 3 | % | ||||||||||||||||||
U.S. Bonds: | ||||||||||||||||||||||||||||||
State | — | — | 47 | 33 | — | — | 47 | 33 | 2 | % | 2 | % | ||||||||||||||||||
Corporate | — | — | 59 | 48 | — | — | 59 | 48 | 2 | % | 2 | % | ||||||||||||||||||
International: | ||||||||||||||||||||||||||||||
Corporate | — | — | 14 | 20 | — | — | 14 | 20 | 1 | % | 1 | % | ||||||||||||||||||
Mortgage Backed | — | — | 39 | 26 | — | — | 39 | 26 | 2 | % | 1 | % | ||||||||||||||||||
Other Investments: | ||||||||||||||||||||||||||||||
Private Equity Funds | — | — | — | — | 13 | 18 | 13 | 18 | — | 1 | % | |||||||||||||||||||
Funds held on deposit | 117 | 114 | — | — | — | — | 117 | 114 | 5 | % | 5 | % | ||||||||||||||||||
1,239 | 1,064 | 1,185 | 1,105 | 13 | 18 | 2,437 | 2,187 | 100 | % | 100 | % | |||||||||||||||||||
Schedule of the net change in the Level III fair value category | The following table presents the net change in the Level III fair value category: | |||||||||||||||||||||||||||||
(millions of Canadian dollars, pre-tax) | Private | |||||||||||||||||||||||||||||
Equity Funds | ||||||||||||||||||||||||||||||
Balance at December 31, 2012 | 19 | |||||||||||||||||||||||||||||
Purchases and Sales | (4 | ) | ||||||||||||||||||||||||||||
Realized and unrealized gains | 3 | |||||||||||||||||||||||||||||
Balance at December 31, 2013 | 18 | |||||||||||||||||||||||||||||
Purchases and sales | (7 | ) | ||||||||||||||||||||||||||||
Realized and unrealized gains | 2 | |||||||||||||||||||||||||||||
Balance at December 31, 2014 | 13 | |||||||||||||||||||||||||||||
Schedule of estimated future benefit payments, which reflect expected future service | The following are estimated future benefit payments, which reflect expected future service: | |||||||||||||||||||||||||||||
(millions of Canadian dollars) | Pension | Other Post- | ||||||||||||||||||||||||||||
Benefits | Retirement | |||||||||||||||||||||||||||||
Benefits | ||||||||||||||||||||||||||||||
2015 | 102 | 8 | ||||||||||||||||||||||||||||
2016 | 108 | 8 | ||||||||||||||||||||||||||||
2017 | 114 | 9 | ||||||||||||||||||||||||||||
2018 | 120 | 9 | ||||||||||||||||||||||||||||
2019 | 127 | 10 | ||||||||||||||||||||||||||||
2020 to 2024 | 728 | 51 | ||||||||||||||||||||||||||||
Schedule of weighted average assumptions used in calculating benefit obligation | The significant weighted average actuarial assumptions adopted in measuring the Company's benefit obligations were as follows: | |||||||||||||||||||||||||||||
Pension Benefit Plans | Other | |||||||||||||||||||||||||||||
Post-Retirement | ||||||||||||||||||||||||||||||
Benefit Plans | ||||||||||||||||||||||||||||||
at December 31 | 2014 | 2013 | 2014 | 2013 | ||||||||||||||||||||||||||
Discount rate | 4.15 | % | 4.95 | % | 4.2 | % | 5 | % | ||||||||||||||||||||||
Rate of compensation increase | 3.15 | % | 3.15 | % | — | — | ||||||||||||||||||||||||
Schedule of significant weighted average actuarial assumptions adopted in measuring the Company's net benefit plan costs | The significant weighted average actuarial assumptions adopted in measuring the Company's net benefit plan costs were as follows: | |||||||||||||||||||||||||||||
Pension | Other | |||||||||||||||||||||||||||||
Benefit Plans | Post-Retirement | |||||||||||||||||||||||||||||
Benefit Plans | ||||||||||||||||||||||||||||||
year ended December 31 | 2014 | 2013 | 2012 | 2014 | 2013 | 2012 | ||||||||||||||||||||||||
Discount rate | 4.95 | % | 4.35 | % | 5.05 | % | 5 | % | 4.35 | % | 5.1 | % | ||||||||||||||||||
Expected long-term rate of return on plan assets | 6.9 | % | 6.7 | % | 6.7 | % | 4.6 | % | 4.6 | % | 6.4 | % | ||||||||||||||||||
Rate of compensation increase | 3.15 | % | 3.15 | % | 3.15 | % | — | — | — | |||||||||||||||||||||
Schedule of effects of a one per cent change in assumed health care cost trend rates | A one per cent change in assumed health care cost trend rates would have the following effects: | |||||||||||||||||||||||||||||
(millions of Canadian dollars) | Increase | Decrease | ||||||||||||||||||||||||||||
Effect on total of service and interest cost components | 1 | (1 | ) | |||||||||||||||||||||||||||
Effect on post-retirement benefit obligation | 14 | (12 | ) | |||||||||||||||||||||||||||
Schedule of the Company's net benefit cost | The Company's net benefit cost is as follows: | |||||||||||||||||||||||||||||
at December 31 | Pension | Other | ||||||||||||||||||||||||||||
Benefit Plans | Post-Retirement | |||||||||||||||||||||||||||||
Benefit Plans | ||||||||||||||||||||||||||||||
(millions of Canadian dollars) | 2014 | 2013 | 2012 | 2014 | 2013 | 2012 | ||||||||||||||||||||||||
Service cost | 85 | 84 | 66 | 2 | 2 | 2 | ||||||||||||||||||||||||
Interest cost | 113 | 96 | 94 | 10 | 7 | 8 | ||||||||||||||||||||||||
Expected return on plan assets | (139 | ) | (120 | ) | (113 | ) | (2 | ) | (2 | ) | (2 | ) | ||||||||||||||||||
Amortization of actuarial loss | 21 | 30 | 18 | 2 | 2 | 1 | ||||||||||||||||||||||||
Amortization of past service cost | 2 | 2 | 2 | — | — | 1 | ||||||||||||||||||||||||
Amortization of regulatory asset | 18 | 30 | 19 | 1 | 1 | 1 | ||||||||||||||||||||||||
Amortization of transitional obligation related to regulated business | — | — | — | 2 | 2 | 2 | ||||||||||||||||||||||||
Net Benefit Cost Recognized | 100 | 122 | 86 | 15 | 12 | 13 | ||||||||||||||||||||||||
Schedule of the pre-tax amounts recognized in AOCI | Pre-tax amounts recognized in AOCI were as follows: | |||||||||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||||||||||
at December 31 | Pension | Other Post- | Pension | Other Post- | Pension | Other Post- | ||||||||||||||||||||||||
Benefits | Retirement | Benefits | Retirement | Benefits | Retirement | |||||||||||||||||||||||||
(millions of Canadian dollars) | Benefits | Benefits | Benefits | |||||||||||||||||||||||||||
Net loss | 354 | 40 | 236 | 32 | 362 | 33 | ||||||||||||||||||||||||
Prior service cost | 2 | 1 | 3 | 1 | 5 | 2 | ||||||||||||||||||||||||
356 | 41 | 239 | 33 | 367 | 35 | |||||||||||||||||||||||||
Schedule of the pre-tax amounts recognized in OCI | Pre-tax amounts recognized in OCI were as follows: | |||||||||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||||||||||
at December 31 | Pension | Other Post- | Pension | Other Post- | Pension | Other Post- | ||||||||||||||||||||||||
Benefits | Retirement | Benefits | Retirement | Benefits | Retirement | |||||||||||||||||||||||||
(millions of Canadian dollars) | Benefits | Benefits | Benefits | |||||||||||||||||||||||||||
Amortization of net loss from AOCI to OCI | (21 | ) | (2 | ) | (30 | ) | (2 | ) | (19 | ) | (1 | ) | ||||||||||||||||||
Amortization of prior service costs from AOCI to OCI | (2 | ) | — | (2 | ) | — | (2 | ) | — | |||||||||||||||||||||
Funded status adjustment | 137 | 9 | (96 | ) | — | 99 | 5 | |||||||||||||||||||||||
114 | 7 | (128 | ) | (2 | ) | 78 | 4 | |||||||||||||||||||||||
RISK_MANAGEMENT_AND_FINANCIAL_1
RISK MANAGEMENT AND FINANCIAL INSTRUMENTS (Tables) | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
Derivative financial instruments | ||||||||||||||||
Schedule of the carrying and fair values of non-derivative financial instruments | The following table details the fair value of the non-derivative financial instruments, excluding those where carrying amounts equal fair value, and would be classified in Level II of the fair value hierarchy: | |||||||||||||||
2014 | 2013 | |||||||||||||||
at December 31 | Carrying | Fair | Carrying | Fair | ||||||||||||
(millions of Canadian dollars) | Amount | Value | Amount | Value | ||||||||||||
Notes receivable and other1 | 213 | 263 | 226 | 269 | ||||||||||||
Available for sale assets2 | 62 | 62 | 47 | 47 | ||||||||||||
Current and Long-Term Debt3,4Â (Note 15) | (24,757 | ) | (28,713 | ) | (22,865 | ) | (26,134 | ) | ||||||||
Junior Subordinated Notes (Note 17) | (1,160 | ) | (1,157 | ) | (1,063 | ) | (1,093 | ) | ||||||||
(25,642 | ) | (29,545 | ) | (23,655 | ) | (26,911 | ) | |||||||||
1 | Notes receivable are included in Other Current Assets and Intangible and Other Assets on the Consolidated Balance Sheet. | |||||||||||||||
2 | Available for sale assets are included in Intangible and Other Assets on the Consolidated Balance Sheet. | |||||||||||||||
3 | Long-Term Debt is recorded at amortized cost, except for US$400 million (2013 - US$200 million) that is attributed to hedged risk and recorded at fair value. | |||||||||||||||
4 | Consolidated Net Income in 2014 included losses of $3 million (2013 - losses of $5 million) for fair value adjustments attributable to the hedged interest rate risk associated with interest rate swap fair value hedging relationships on US$400 million of Long-Term Debt at December 31, 2014 (2013 - US$200 million). There were no other unrealized gains or losses from fair value adjustments to the non-derivative financial instruments. | |||||||||||||||
Schedule of fair value of the derivative financial instruments in the Company's Balance Sheet | The balance sheet classification of the fair value of the derivative instruments is as follows: | |||||||||||||||
at December 31 | 2014 | 2013 | ||||||||||||||
(millions of Canadian dollars) | ||||||||||||||||
Other Current Assets (Note 5) | 409 | 395 | ||||||||||||||
Intangible and Other Assets (Note 11) | 93 | 112 | ||||||||||||||
Accounts Payable and Other (Note 13) | (749 | ) | (357 | ) | ||||||||||||
Other Long-Term Liabilities (Note 14) | (411 | ) | (255 | ) | ||||||||||||
(658 | ) | (105 | ) | |||||||||||||
Schedule of components of OCI related to derivates in cash flow hedging relationships | The following table presents the components of OCI (Note 21) related to derivatives in cash flow hedging relationships: | |||||||||||||||
year ended December 31 | 2014 | 2013 | ||||||||||||||
(millions of Canadian dollars, pre-tax) | ||||||||||||||||
Change in fair value of derivative instruments recognized in OCI (effective portion)1 | ||||||||||||||||
Power | (126 | ) | 117 | |||||||||||||
Natural Gas | (2 | ) | (1 | ) | ||||||||||||
Foreign Exchange | 10 | 5 | ||||||||||||||
(118 | ) | 121 | ||||||||||||||
Reclassification of (losses)/gains on derivative instruments from AOCI to Net Income (effective portion)1 | ||||||||||||||||
Power2 | (114 | ) | 40 | |||||||||||||
Natural Gas2 | 3 | 4 | ||||||||||||||
Interest3 | 16 | 16 | ||||||||||||||
(95 | ) | 60 | ||||||||||||||
(Losses)/gains on derivative instruments recognized in Net Income (ineffective portion) | ||||||||||||||||
Power | (13 | ) | 8 | |||||||||||||
(13 | ) | 8 | ||||||||||||||
1 | No amounts have been excluded from the assessment of hedge effectiveness. Amounts in parentheses indicate losses recorded to OCI. | |||||||||||||||
2 | Reported within Energy Revenues on the Consolidated Statement of Income. | |||||||||||||||
3 | Reported within Interest Expense on the Consolidated Statement of Income. | |||||||||||||||
Schedule of offsetting assets | The following table shows the impact on the presentation of the fair value of derivative instrument assets and liabilities had the Company elected to present these contracts on a net basis: | |||||||||||||||
at December 31, 2014 | Gross derivative instruments presented on the balance sheet | Amounts available for offset1 | Net amounts | |||||||||||||
(millions of Canadian dollars) | ||||||||||||||||
Derivative - Asset | ||||||||||||||||
Power | 419 | (330 | ) | 89 | ||||||||||||
Natural gas | 69 | (57 | ) | 12 | ||||||||||||
Foreign exchange | 7 | (7 | ) | — | ||||||||||||
Interest | 7 | (1 | ) | 6 | ||||||||||||
502 | (395 | ) | 107 | |||||||||||||
Derivative - Liability | ||||||||||||||||
Power | (554 | ) | 330 | (224 | ) | |||||||||||
Natural gas | (103 | ) | 57 | (46 | ) | |||||||||||
Foreign exchange | (497 | ) | 7 | (490 | ) | |||||||||||
Interest | (6 | ) | 1 | (5 | ) | |||||||||||
(1,160 | ) | 395 | (765 | ) | ||||||||||||
1 | Amounts available for offset do not include cash collateral pledged or received. | |||||||||||||||
The following table shows the impact on the presentation of the fair value of derivative instrument assets and liabilities had the Company elected to present these contracts on a net basis as at December 31, 2013: | ||||||||||||||||
at December 31, 2013 | Gross derivative instruments presented on the balance sheet | Amounts available for offset1 | Net amounts | |||||||||||||
(millions of Canadian dollars) | ||||||||||||||||
Derivative - Asset | ||||||||||||||||
Power | 415 | (277 | ) | 138 | ||||||||||||
Natural gas | 73 | (61 | ) | 12 | ||||||||||||
Foreign exchange | 5 | (5 | ) | — | ||||||||||||
Interest | 14 | (2 | ) | 12 | ||||||||||||
507 | (345 | ) | 162 | |||||||||||||
Derivative - Liability | ||||||||||||||||
Power | (302 | ) | 277 | (25 | ) | |||||||||||
Natural gas | (72 | ) | 61 | (11 | ) | |||||||||||
Foreign exchange | (230 | ) | 5 | (225 | ) | |||||||||||
Interest | (8 | ) | 2 | (6 | ) | |||||||||||
(612 | ) | 345 | (267 | ) | ||||||||||||
1 | Amounts available for offset do not include cash collateral pledged or received. | |||||||||||||||
Schedule of offsetting liabilities | The following table shows the impact on the presentation of the fair value of derivative instrument assets and liabilities had the Company elected to present these contracts on a net basis as at December 31, 2013: | |||||||||||||||
at December 31, 2013 | Gross derivative instruments presented on the balance sheet | Amounts available for offset1 | Net amounts | |||||||||||||
(millions of Canadian dollars) | ||||||||||||||||
Derivative - Asset | ||||||||||||||||
Power | 415 | (277 | ) | 138 | ||||||||||||
Natural gas | 73 | (61 | ) | 12 | ||||||||||||
Foreign exchange | 5 | (5 | ) | — | ||||||||||||
Interest | 14 | (2 | ) | 12 | ||||||||||||
507 | (345 | ) | 162 | |||||||||||||
Derivative - Liability | ||||||||||||||||
Power | (302 | ) | 277 | (25 | ) | |||||||||||
Natural gas | (72 | ) | 61 | (11 | ) | |||||||||||
Foreign exchange | (230 | ) | 5 | (225 | ) | |||||||||||
Interest | (8 | ) | 2 | (6 | ) | |||||||||||
(612 | ) | 345 | (267 | ) | ||||||||||||
1 | Amounts available for offset do not include cash collateral pledged or received. | |||||||||||||||
The following table shows the impact on the presentation of the fair value of derivative instrument assets and liabilities had the Company elected to present these contracts on a net basis: | ||||||||||||||||
at December 31, 2014 | Gross derivative instruments presented on the balance sheet | Amounts available for offset1 | Net amounts | |||||||||||||
(millions of Canadian dollars) | ||||||||||||||||
Derivative - Asset | ||||||||||||||||
Power | 419 | (330 | ) | 89 | ||||||||||||
Natural gas | 69 | (57 | ) | 12 | ||||||||||||
Foreign exchange | 7 | (7 | ) | — | ||||||||||||
Interest | 7 | (1 | ) | 6 | ||||||||||||
502 | (395 | ) | 107 | |||||||||||||
Derivative - Liability | ||||||||||||||||
Power | (554 | ) | 330 | (224 | ) | |||||||||||
Natural gas | (103 | ) | 57 | (46 | ) | |||||||||||
Foreign exchange | (497 | ) | 7 | (490 | ) | |||||||||||
Interest | (6 | ) | 1 | (5 | ) | |||||||||||
(1,160 | ) | 395 | (765 | ) | ||||||||||||
1 | Amounts available for offset do not include cash collateral pledged or received. | |||||||||||||||
Schedule of fair value of the Company's assets and liabilities measured on a recurring basis, including both current and non-current portions | The fair value of the Company's assets and liabilities measured on a recurring basis, including both current and non-current portions for 2014, are categorized as follows: | |||||||||||||||
at December 31, 2014 | Quoted prices in active markets | Significant other observable inputs Level II1 | Significant unobservable inputs | Total | ||||||||||||
(millions of Canadian dollars, pre-tax) | Level I1 | Level III1 | ||||||||||||||
Derivative Instrument Assets: | ||||||||||||||||
Power commodity contracts | — | 417 | 2 | 419 | ||||||||||||
Natural gas commodity contracts | 40 | 24 | 5 | 69 | ||||||||||||
Foreign exchange contracts | — | 7 | — | 7 | ||||||||||||
Interest rate contracts | — | 7 | — | 7 | ||||||||||||
Derivative Instrument Liabilities: | ||||||||||||||||
Power commodity contracts | — | (551 | ) | (3 | ) | (554 | ) | |||||||||
Natural gas commodity contracts | (86 | ) | (17 | ) | — | (103 | ) | |||||||||
Foreign exchange contracts | — | (497 | ) | — | (497 | ) | ||||||||||
Interest rate contracts | — | (6 | ) | — | (6 | ) | ||||||||||
Non-Derivative Financial Instruments: | ||||||||||||||||
Available for sale assets | — | 62 | — | 62 | ||||||||||||
(46 | ) | (554 | ) | 4 | (596 | ) | ||||||||||
1 | There were no transfers from Level I to Level II or from Level II to Level III for the year ended December 31, 2014. | |||||||||||||||
The fair value of the Company's assets and liabilities measured on a recurring basis, including both current and non-current portions for 2013, are categorized as follows: | ||||||||||||||||
at December 31, 2013 | Quoted prices in active markets | Significant other observable inputs Level II1 | Significant unobservable inputs | Total | ||||||||||||
(millions of Canadian dollars, pre-tax) | Level I1 | Level III1 | ||||||||||||||
Derivative Instrument Assets: | ||||||||||||||||
Power commodity contracts | — | 411 | 4 | 415 | ||||||||||||
Natural gas commodity contracts | 48 | 25 | — | 73 | ||||||||||||
Foreign exchange contracts | — | 5 | — | 5 | ||||||||||||
Interest rate contracts | — | 14 | — | 14 | ||||||||||||
Derivative Instrument Liabilities: | ||||||||||||||||
Power commodity contracts | — | (299 | ) | (3 | ) | (302 | ) | |||||||||
Natural gas commodity contracts | (50 | ) | (22 | ) | — | (72 | ) | |||||||||
Foreign exchange contracts | — | (230 | ) | — | (230 | ) | ||||||||||
Interest rate contracts | — | (8 | ) | — | (8 | ) | ||||||||||
Non-Derivative Financial Instruments: | ||||||||||||||||
Available for sale assets | — | 47 | — | 47 | ||||||||||||
(2 | ) | (57 | ) | 1 | (58 | ) | ||||||||||
1 | There were no transfers from Level I to Level II or from Level II to Level III for the year ended December 31, 2013 | |||||||||||||||
Schedule of net change in the Level III fair value category | The following table presents the net change in fair value of derivative assets and liabilities classified as Level III of the fair value hierarchy: | |||||||||||||||
(millions of Canadian dollars, pre-tax) | 2014 | 2013 | ||||||||||||||
Balance at beginning of year | 1 | (2 | ) | |||||||||||||
Transfers out of Level III | — | (2 | ) | |||||||||||||
Total gains/(losses) included in Net Income | 3 | (1 | ) | |||||||||||||
Total gains included in OCI | — | 6 | ||||||||||||||
Balance at end of year1 | 4 | 1 | ||||||||||||||
1 | Energy Revenues include unrealized gains attributed to derivatives in the Level III category that were still held at December 31, 2014 of $3 million (2013 – nil). | |||||||||||||||
Derivative financial instrument, excluding net investment hedges | ||||||||||||||||
Derivative financial instruments | ||||||||||||||||
Schedule of fair values and notional or principal amounts for the derivatives | The following summary does not include hedges of the net investment in foreign operations. | |||||||||||||||
(millions of Canadian dollars, unless noted otherwise) | Power | Natural | Foreign | Interest | ||||||||||||
Gas | Exchange | |||||||||||||||
Derivative Instruments Held for Trading1 | ||||||||||||||||
Fair Values2 | ||||||||||||||||
Assets | $265 | $73 | $— | $8 | ||||||||||||
Liabilities | ($280 | ) | ($72 | ) | ($12 | ) | ($7 | ) | ||||||||
Notional Values | ||||||||||||||||
Volumes3 | ||||||||||||||||
Purchases | 29,301 | 88 | — | — | ||||||||||||
Sales | 28,534 | 60 | — | — | ||||||||||||
Canadian dollars | — | — | — | 400 | ||||||||||||
U.S. dollars | — | — | US 1,015 | US 100 | ||||||||||||
Net unrealized gains/(losses) in the year4 | $19 | $17 | ($10 | ) | $— | |||||||||||
Net realized losses in the year4 | ($49 | ) | ($13 | ) | ($9 | ) | $— | |||||||||
Maturity dates | 2014-2017 | 2014-2016 | 2014 | 2014-2016 | ||||||||||||
Derivative Instruments in Hedging Relationships5,6 | ||||||||||||||||
Fair Values2 | ||||||||||||||||
Assets | $150 | $— | $— | $6 | ||||||||||||
Liabilities | ($22 | ) | $— | ($1 | ) | ($1 | ) | |||||||||
Notional Values | ||||||||||||||||
Volumes3 | ||||||||||||||||
Purchases | 9,758 | — | — | — | ||||||||||||
Sales | 6,906 | — | — | — | ||||||||||||
U.S. dollars | — | — | US 16 | US 350 | ||||||||||||
Net realized (losses)/gains in the year4 | ($19 | ) | ($2 | ) | $— | $5 | ||||||||||
Maturity dates | 2014-2018 | — | 2014 | 2015-2018 | ||||||||||||
1 | The majority of derivative instruments held for trading have been entered into for risk management purposes and all are subject to the Company’s risk management strategies, policies and limits. These include derivatives that have not been designated as hedges or do not qualify for hedge accounting treatment but have been entered into as economic hedges to manage the Company’s exposures to market risk. | |||||||||||||||
2 | Fair value equals carrying value. | |||||||||||||||
3 | Volumes for power and natural gas derivatives are in GWh and Bcf, respectively. | |||||||||||||||
4 | Realized and unrealized gains and losses on held for trading derivative instruments used to purchase and sell power and natural gas are included net in Energy Revenues. Realized and unrealized gains and losses on interest rate and foreign exchange derivative instruments held for trading are included net in Interest Expense and Interest Income and Other, respectively. The effective portion of the change in fair value of derivative instruments in hedging relationships is initially recognized in OCI and reclassified to Energy Revenues, Interest Expense and Interest Income and Other, as appropriate, as the original hedged item settles. | |||||||||||||||
5 | All hedging relationships are designated as cash flow hedges except for interest rate derivative instruments designated as fair value hedges with a fair value of $5 million and a notional amount of US$200 million. In 2013, net realized gains on fair value hedges were $6 million and were included in Interest Expense. In 2013, the Company did not record any amounts in Net Income related to ineffectiveness for fair value hedges. | |||||||||||||||
6 | In 2013, there were no gains or losses included in Net Income relating to discontinued cash flow hedges where it was probable that the anticipated transaction would not occur. | |||||||||||||||
The following summary does not include hedges of the net investment in foreign operations. | ||||||||||||||||
(millions of Canadian dollars, unless noted otherwise) | Power | Natural | Foreign | Interest | ||||||||||||
Gas | Exchange | |||||||||||||||
Derivative Instruments Held for Trading1 | ||||||||||||||||
Fair Values2 | ||||||||||||||||
Assets | $362 | $69 | $1 | $4 | ||||||||||||
Liabilities | ($391 | ) | ($103 | ) | ($32 | ) | ($4 | ) | ||||||||
Notional Values | ||||||||||||||||
Volumes3 | ||||||||||||||||
Purchases | 42,097 | 60 | — | — | ||||||||||||
Sales | 35,452 | 38 | — | — | ||||||||||||
U.S. dollars | — | — | US 1,374 | US 100 | ||||||||||||
Net unrealized losses in the year4 | ($5 | ) | ($35 | ) | ($20 | ) | $— | |||||||||
Net realized (losses)/gains in the year4 | ($39 | ) | $11 | ($28 | ) | $— | ||||||||||
Maturity dates | 2015-2019 | 2015-2020 | 2015 | 2015-2016 | ||||||||||||
Derivative Instruments in Hedging Relationships5,6 | ||||||||||||||||
Fair Values2 | ||||||||||||||||
Assets | $57 | $— | $— | $3 | ||||||||||||
Liabilities | ($163 | ) | $— | $— | ($2 | ) | ||||||||||
Notional Values | ||||||||||||||||
Volumes3 | ||||||||||||||||
Purchases | 11,120 | — | — | — | ||||||||||||
Sales | 3,977 | — | — | — | ||||||||||||
U.S. dollars | — | — | — | US 550 | ||||||||||||
Net realized gains in the year4 | $130 | $— | $— | $4 | ||||||||||||
Maturity dates | 2015-2019 | — | — | 2015-2018 | ||||||||||||
1 | The majority of derivative instruments held for trading have been entered into for risk management purposes and all are subject to the Company’s risk management strategies, policies and limits. These include derivatives that have not been designated as hedges or do not qualify for hedge accounting treatment but have been entered into as economic hedges to manage the Company’s exposures to market risk. | |||||||||||||||
2 | Fair value equals carrying value. | |||||||||||||||
3 | Volumes for power and natural gas derivatives are in GWh and Bcf, respectively. | |||||||||||||||
4 | Realized and unrealized gains and losses on held for trading derivative instruments used to purchase and sell power and natural gas are included net in Energy Revenues. Realized and unrealized gains and losses on interest rate and foreign exchange derivative instruments held for trading are included net in Interest Expense and Interest Income and Other, respectively. The effective portion of the change in fair value of derivative instruments in hedging relationships is initially recognized in OCI and reclassified to Energy Revenues, Interest Expense and Interest Income and Other, as appropriate, as the original hedged item settles. | |||||||||||||||
5 | All hedging relationships are designated as cash flow hedges except for interest rate derivative instruments designated as fair value hedges with a fair value of $3 million and a notional amount of US$400 million. In 2014, net realized gains on fair value hedges were $7 million and were included in Interest Expense. In 2014, the Company did not record any amounts in Net Income related to ineffectiveness for fair value hedges. | |||||||||||||||
6 | In 2014, there were no gains or losses included in Net Income relating to discontinued cash flow hedges where it was probable that the anticipated transaction would not occur. | |||||||||||||||
Designated as a net investment hedge | ||||||||||||||||
Derivative financial instruments | ||||||||||||||||
Schedule of the carrying and fair values of non-derivative financial instruments | ||||||||||||||||
at December 31 | 2014 | 2013 | ||||||||||||||
(millions of Canadian dollars, unless noted otherwise) | ||||||||||||||||
Carrying value | 17,000 (US 14,700) | 14,200 (US 13,400) | ||||||||||||||
Fair value | 19,000 (US 16,400) | 16,000 (US 15,000) | ||||||||||||||
Schedule of fair values and notional or principal amounts for the derivatives | ||||||||||||||||
2014 | 2013 | |||||||||||||||
at December 31 | Fair | Notional or | Fair | Notional or | ||||||||||||
Value1 | Principal | Value1 | Principal | |||||||||||||
(millions of Canadian dollars, unless noted otherwise) | Amount | Amount | ||||||||||||||
U.S. dollar cross-currency interest rate swaps (maturing 2015 to 2019)2 | (431 | ) |          US | 2,900 | (201 | ) |          US | 3,800 | ||||||||
U.S. dollar foreign exchange forward contracts (maturing 2015) | (28 | ) |          US | 1,400 | (11 | ) |             US | 850 | ||||||||
(459 | ) | Â Â Â Â Â Â Â Â Â US | 4,300 | (212 | ) | Â Â Â Â Â Â Â Â Â US | 4,650 | |||||||||
1 | Fair values approximate carrying values. | |||||||||||||||
2 | In 2014, net realized gains of $21 million (2013 – gains of $29 million) related to the interest component of cross-currency swap settlements are included in Interest Expense. | |||||||||||||||
Schedule of fair value of the derivative financial instruments in the Company's Balance Sheet | The balance sheet classification of the fair value of derivatives used to hedge the Company’s net investment in foreign operations is as follows: | |||||||||||||||
at December 31 | 2014 | 2013 | ||||||||||||||
(millions of Canadian dollars) | ||||||||||||||||
Other Current Assets (Note 5) | 5 | 5 | ||||||||||||||
Intangible and Other Assets (Note 11) | 1 | — | ||||||||||||||
Accounts Payable and Other (Note 13) | (155 | ) | (50 | ) | ||||||||||||
Other Long-Term Liabilities (Note 14) | (310 | ) | (167 | ) | ||||||||||||
(459 | ) | (212 | ) |
CHANGES_IN_OPERATING_WORKING_C1
CHANGES IN OPERATING WORKING CAPITAL (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
CHANGES IN OPERATING WORKING CAPITAL | |||||||||
Schedule of changes in operating working capital | |||||||||
year ended December 31 | 2014 | 2013 | 2012 | ||||||
(millions of Canadian dollars) | |||||||||
(Increase)/decrease in Accounts Receivable | (189 | ) | (54 | ) | 67 | ||||
(Increase)/decrease in Inventories | (28 | ) | (30 | ) | 27 | ||||
(Increase)/decrease in Other Current Assets | (385 | ) | 40 | 66 | |||||
Increase/(decrease) in Accounts Payable and Other | 377 | (290 | ) | 127 | |||||
Increase in Accrued Interest | 36 | 8 | — | ||||||
(Increase)/Decrease in Operating Working Capital | (189 | ) | (326 | ) | 287 | ||||
COMMITMENTS_CONTINGENCIES_AND_1
COMMITMENTS, CONTINGENCIES AND GUARANTEES (Tables) | 12 Months Ended | |||||||||||||
Dec. 31, 2014 | ||||||||||||||
Commitments and Contingencies Disclosure [Abstract] | ||||||||||||||
Schedule of future annual payments, net of sub-lease receipts, under the Company's operating leases for various premises, services and equipment | Future annual payments, net of sub-lease receipts, under the Company's operating leases for various premises, services and equipment are approximately as follows: | |||||||||||||
year ended December 31 | Minimum | Amounts | Net | |||||||||||
Lease | Recoverable | Payments | ||||||||||||
Payments | under | |||||||||||||
(millions of Canadian dollars) | Sub-leases | |||||||||||||
2015 | 348 | 48 | 300 | |||||||||||
2016 | 335 | 47 | 288 | |||||||||||
2017 | 335 | 48 | 287 | |||||||||||
2018 | 250 | 27 | 223 | |||||||||||
2019 | 232 | 23 | 209 | |||||||||||
2020 and thereafter | 407 | 20 | 387 | |||||||||||
1,907 | 213 | 1,694 | ||||||||||||
Schedule of generating capacities and expiry dates of the PPAs | The generating capacities and expiry dates of the PPAs are as follows: | |||||||||||||
MW | Expiry Date | |||||||||||||
Sundance A | 560 | December 31, 2017 | ||||||||||||
Sheerness | 756 | December 31, 2020 | ||||||||||||
Schedule of guarantees | Information regarding the Company’s guarantees is as follows: | |||||||||||||
2014 | 2013 | |||||||||||||
year ended December 31 | Term | Potential Exposure1 | Carrying Value | Potential Exposure1 | Carrying Value | |||||||||
(millions of Canadian dollars) | ||||||||||||||
Bruce Power | Ranging to 20192 | 634 | 6 | 740 | 8 | |||||||||
Other jointly owned entities | Ranging to 2040 | 104 | 14 | 51 | 10 | |||||||||
738 | 20 | 791 | 18 | |||||||||||
1 | TransCanada's share of the potential estimated current or contingent exposure. | |||||||||||||
2 | Except for one guarantee with no termination date. |
DESCRIPTION_OF_TRANSCANADAS_BU1
DESCRIPTION OF TRANSCANADA'S BUSINESS (Details) | 12 Months Ended |
Dec. 31, 2014 | |
segment | |
plant | |
facility | |
Bcf | |
km | |
mi | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of business segments in which the entity operates | 3 |
Public Utilities Property, Plant and Equipment, Regulated Natural Gas Pipelines, in kilometers | 68,000 |
Public Utilities, Property, Plant and Equipment, Regulated Natural Gas Pipelines, in Miles | 42,000 |
Public Utilities, Property, Plant and Equipment, Regulated Natural Gas Storage Facilities, in Billion Cubic Feet | 400 |
Public Utilities, Property, Plant and Equipment, Crude Oil Pipelines, in Kilometers | 4,250 |
Public Utilities, Property, Plant and Equipment, Crude Oil Pipelines, in Miles | 2,600 |
Public Utilities, Property, Plant and Equipment, Electrical Power Generation Plants | 19 |
Public Utilities, Property, Plant and Equipment, Number of Non-Regulated Natural Gas Storage Facilities | 2 |
ACCOUNTING_POLICIES_Details
ACCOUNTING POLICIES (Details) | 12 Months Ended |
Dec. 31, 2014 | |
level | |
Annual review for goodwill impairment | |
Number of levels below operating segments level considered for measuring reporting unit level | 1 |
Employee Post-Retirement Benefits | |
Moving average period of basis used to determine expected return on plan assets | 5 years |
Corporate | Minimum | |
Plant, property and equipment | |
Annual depreciation rate on straight-line basis (as a percent) | 3.00% |
Corporate | Maximum | |
Plant, property and equipment | |
Annual depreciation rate on straight-line basis (as a percent) | 20.00% |
Natural Gas Pipelines | Pipeline | Minimum | |
Plant, property and equipment | |
Annual depreciation rate on straight-line basis (as a percent) | 1.00% |
Natural Gas Pipelines | Pipeline | Maximum | |
Plant, property and equipment | |
Annual depreciation rate on straight-line basis (as a percent) | 6.00% |
Natural Gas Pipelines | Compression | Minimum | |
Plant, property and equipment | |
Annual depreciation rate on straight-line basis (as a percent) | 1.00% |
Natural Gas Pipelines | Compression | Maximum | |
Plant, property and equipment | |
Annual depreciation rate on straight-line basis (as a percent) | 6.00% |
Liquids Pipelines | Pipeline | Minimum | |
Plant, property and equipment | |
Annual depreciation rate on straight-line basis (as a percent) | 2.00% |
Liquids Pipelines | Pipeline | Maximum | |
Plant, property and equipment | |
Annual depreciation rate on straight-line basis (as a percent) | 2.50% |
Liquids Pipelines | Pumping equipment | Minimum | |
Plant, property and equipment | |
Annual depreciation rate on straight-line basis (as a percent) | 2.00% |
Liquids Pipelines | Pumping equipment | Maximum | |
Plant, property and equipment | |
Annual depreciation rate on straight-line basis (as a percent) | 2.50% |
Energy | Power generation and natural gas storage plant, equipment and structures | Minimum | |
Plant, property and equipment | |
Annual depreciation rate on straight-line basis (as a percent) | 2.00% |
Energy | Power generation and natural gas storage plant, equipment and structures | Maximum | |
Plant, property and equipment | |
Annual depreciation rate on straight-line basis (as a percent) | 20.00% |
SEGMENTED_INFORMATION_Details
SEGMENTED INFORMATION (Details) (CAD) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Segmented information | |||
Revenues | 10,185 | 8,797 | 8,007 |
Income from Equity Investments (Note 8) | 522 | 597 | 257 |
Plant Operating Costs and Other | -2,973 | -2,674 | -2,577 |
Commodity Purchases Resold | -1,836 | -1,317 | -1,049 |
Property Taxes | -473 | -445 | -434 |
Depreciation and Amortization | -1,611 | -1,485 | -1,375 |
Gain on Sale of Assets | 117 | 0 | 0 |
Segment Earnings | 3,931 | 3,473 | 2,829 |
Interest Expense | -1,198 | -985 | -976 |
Interest Income and Other | 91 | 34 | 85 |
Income before Income Taxes | 2,824 | 2,522 | 1,938 |
Income Tax Expense | -831 | -611 | -466 |
Net Income | 1,993 | 1,911 | 1,472 |
Net Income Attributable to Non-Controlling Interests | -153 | -125 | -118 |
Net Income Attributable to Controlling Interests | 1,840 | 1,786 | 1,354 |
Preferred Share Dividends | -97 | -74 | -55 |
Net Income Attributable to Common Shares | 1,743 | 1,712 | 1,299 |
Capital Spending | |||
Capital Expenditures | 3,550 | 4,264 | 2,595 |
Projects Under Development | 807 | 488 | 3 |
Payments to Acquire Productive Assets | 4,357 | 4,752 | 2,598 |
Total Assets | 58,947 | 53,898 | 48,333 |
GEOGRAPHIC INFORMATION | |||
Revenues | 10,185 | 8,797 | 8,007 |
Plant, Property and Equipment (Note 7) | 41,774 | 37,606 | |
Canada | |||
GEOGRAPHIC INFORMATION | |||
Plant, Property and Equipment (Note 7) | 19,191 | 18,462 | |
Canada - domestic | |||
Segmented information | |||
Revenues | 4,021 | 4,659 | 3,527 |
GEOGRAPHIC INFORMATION | |||
Revenues | 4,021 | 4,659 | 3,527 |
Canada - export | |||
Segmented information | |||
Revenues | 1,314 | 997 | 1,121 |
GEOGRAPHIC INFORMATION | |||
Revenues | 1,314 | 997 | 1,121 |
United States | |||
Segmented information | |||
Revenues | 4,653 | 3,029 | 3,252 |
GEOGRAPHIC INFORMATION | |||
Revenues | 4,653 | 3,029 | 3,252 |
Plant, Property and Equipment (Note 7) | 20,098 | 17,570 | |
Mexico | |||
Segmented information | |||
Revenues | 197 | 112 | 107 |
GEOGRAPHIC INFORMATION | |||
Revenues | 197 | 112 | 107 |
Plant, Property and Equipment (Note 7) | 2,485 | 1,574 | |
Corporate | |||
Segmented information | |||
Plant Operating Costs and Other | -127 | -108 | -97 |
Depreciation and Amortization | -23 | -16 | -14 |
Gain on Sale of Assets | 0 | ||
Segment Earnings | -150 | -124 | -111 |
Capital Spending | |||
Capital Expenditures | 46 | 50 | 37 |
Projects Under Development | 0 | 0 | 0 |
Payments to Acquire Productive Assets | 46 | 50 | 37 |
Total Assets | 1,531 | 1,733 | 1,481 |
GEOGRAPHIC INFORMATION | |||
Plant, Property and Equipment (Note 7) | 152 | 130 | |
Natural Gas Pipelines | Operating segments | |||
Segmented information | |||
Revenues | 4,913 | 4,497 | 4,264 |
Income from Equity Investments (Note 8) | 163 | 145 | 157 |
Plant Operating Costs and Other | -1,501 | -1,405 | -1,365 |
Property Taxes | -334 | -329 | -315 |
Depreciation and Amortization | -1,063 | -1,027 | -933 |
Gain on Sale of Assets | 9 | ||
Segment Earnings | 2,187 | 1,881 | 1,808 |
Capital Spending | |||
Capital Expenditures | 1,768 | 1,776 | 1,389 |
Projects Under Development | 368 | 245 | 0 |
Payments to Acquire Productive Assets | 2,136 | 2,021 | 1,389 |
Total Assets | 27,103 | 25,165 | 23,210 |
GEOGRAPHIC INFORMATION | |||
Revenues | 4,913 | 4,497 | 4,264 |
Plant, Property and Equipment (Note 7) | 20,204 | 18,704 | |
Liquids Pipelines | Operating segments | |||
Segmented information | |||
Revenues | 1,547 | 1,124 | 1,039 |
Plant Operating Costs and Other | -426 | -328 | -296 |
Property Taxes | -62 | -44 | -45 |
Depreciation and Amortization | -216 | -149 | -145 |
Gain on Sale of Assets | 0 | ||
Segment Earnings | 843 | 603 | 553 |
Capital Spending | |||
Capital Expenditures | 1,530 | 2,286 | 1,145 |
Projects Under Development | 439 | 243 | 3 |
Payments to Acquire Productive Assets | 1,969 | 2,529 | 1,148 |
Total Assets | 16,116 | 13,253 | 10,485 |
GEOGRAPHIC INFORMATION | |||
Revenues | 1,547 | 1,124 | 1,039 |
Plant, Property and Equipment (Note 7) | 14,928 | 12,740 | |
Energy | Operating segments | |||
Segmented information | |||
Revenues | 3,725 | 3,176 | 2,704 |
Income from Equity Investments (Note 8) | 359 | 452 | 100 |
Plant Operating Costs and Other | -919 | -833 | -819 |
Commodity Purchases Resold | -1,836 | -1,317 | -1,049 |
Property Taxes | -77 | -72 | -74 |
Depreciation and Amortization | -309 | -293 | -283 |
Gain on Sale of Assets | 108 | ||
Segment Earnings | 1,051 | 1,113 | 579 |
Capital Spending | |||
Capital Expenditures | 206 | 152 | 24 |
Projects Under Development | 0 | 0 | 0 |
Payments to Acquire Productive Assets | 206 | 152 | 24 |
Total Assets | 14,197 | 13,747 | 13,157 |
GEOGRAPHIC INFORMATION | |||
Revenues | 3,725 | 3,176 | 2,704 |
Plant, Property and Equipment (Note 7) | 6,490 | 6,032 |
OTHER_CURRENT_ASSETS_Details
OTHER CURRENT ASSETS (Details) (CAD) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Other Assets [Abstract] | ||
Deferred income tax assets (Note 16) | 427 | 119 |
Cash held as collateral | 423 | 42 |
Fair value of derivative contracts (Note 23) | 409 | 395 |
Other | 171 | 164 |
Regulatory Assets (Note 9) | 16 | 42 |
Assets held for sale (Note 6) | 0 | 85 |
Other Assets, Current | 1,446 | 847 |
ASSETS_HELD_FOR_SALE_Details
ASSETS HELD FOR SALE (Details) (CAD) | 0 Months Ended | ||
In Millions, unless otherwise specified | Apr. 15, 2014 | Dec. 31, 2014 | Dec. 31, 2013 |
Assets Held for Sale | |||
Cash and Cash Equivalents | 1 | ||
Accounts Receivable | 12 | ||
Inventories | 11 | ||
Plant, Property and Equipment | 61 | ||
Total Assets Held for Sale (included in Other Current Assets, Note 5) | 0 | 85 | |
Liabilities Related to Assets Held for Sale | |||
Accounts Payable and Other | 4 | ||
Other Long-Term Liabilities | 1 | ||
Total Liabilities Related to Assets Held for Sale (included in Accounts Payable and Other, Note 13) | 0 | 5 | |
Proceeds from Sale of Other Assets | 190 | ||
Gain (Loss) on Disposition of Other Assets, Gross | 108 | ||
Gain (Loss) on Disposition of Other Assets | 99 |
PLANT_PROPERTY_AND_EQUIPMENT_D
PLANT, PROPERTY AND EQUIPMENT (Details) (CAD) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Plant, property and equipment | |||
Cost | 61,337,000,000 | 55,457,000,000 | |
Accumulated Depreciation | 19,563,000,000 | 17,851,000,000 | |
Net Book Value | 41,774,000,000 | 37,606,000,000 | |
Mexico | |||
Plant, property and equipment | |||
Net Book Value | 2,485,000,000 | 1,574,000,000 | |
Liquids Pipelines | Keystone XL | Under construction | |||
Plant, property and equipment | |||
Amount of construction in progress, which remains subject to regulatory approvals | 3,200,000,000 | 2,600,000,000 | |
Energy | Facilities under PPAs | |||
Plant, property and equipment | |||
Cost | 695,000,000 | 640,000,000 | |
Accumulated Depreciation | 103,000,000 | 78,000,000 | |
Revenues recognized through the sale of electricity | 81,000,000 | 78,000,000 | 73,000,000 |
Operating segments | Natural Gas Pipelines | |||
Plant, property and equipment | |||
Cost | 37,076,000,000 | 34,427,000,000 | |
Accumulated Depreciation | 16,872,000,000 | 15,723,000,000 | |
Net Book Value | 20,204,000,000 | 18,704,000,000 | |
Operating segments | Natural Gas Pipelines | Pipeline | Mexico | |||
Plant, property and equipment | |||
Cost | 1,518,000,000 | 641,000,000 | |
Accumulated Depreciation | 130,000,000 | 90,000,000 | |
Net Book Value | 1,388,000,000 | 551,000,000 | |
Operating segments | Natural Gas Pipelines | Canadian Mainline | |||
Plant, property and equipment | |||
Cost | 13,061,000,000 | 12,856,000,000 | |
Accumulated Depreciation | 7,992,000,000 | 7,592,000,000 | |
Net Book Value | 5,069,000,000 | 5,264,000,000 | |
Operating segments | Natural Gas Pipelines | Canadian Mainline | Pipeline | |||
Plant, property and equipment | |||
Cost | 9,045,000,000 | 8,970,000,000 | |
Accumulated Depreciation | 5,712,000,000 | 5,457,000,000 | |
Net Book Value | 3,333,000,000 | 3,513,000,000 | |
Operating segments | Natural Gas Pipelines | Canadian Mainline | Compression | |||
Plant, property and equipment | |||
Cost | 3,423,000,000 | 3,392,000,000 | |
Accumulated Depreciation | 2,100,000,000 | 1,961,000,000 | |
Net Book Value | 1,323,000,000 | 1,431,000,000 | |
Operating segments | Natural Gas Pipelines | Canadian Mainline | Metering and other | |||
Plant, property and equipment | |||
Cost | 458,000,000 | 409,000,000 | |
Accumulated Depreciation | 180,000,000 | 174,000,000 | |
Net Book Value | 278,000,000 | 235,000,000 | |
Operating segments | Natural Gas Pipelines | Canadian Mainline | Property, plant and equipment excluding under construction | |||
Plant, property and equipment | |||
Cost | 12,926,000,000 | 12,771,000,000 | |
Accumulated Depreciation | 7,992,000,000 | 7,592,000,000 | |
Net Book Value | 4,934,000,000 | 5,179,000,000 | |
Operating segments | Natural Gas Pipelines | Canadian Mainline | Under construction | |||
Plant, property and equipment | |||
Cost | 135,000,000 | 85,000,000 | |
Net Book Value | 135,000,000 | 85,000,000 | |
Operating segments | Natural Gas Pipelines | NGTL System | |||
Plant, property and equipment | |||
Cost | 11,685,000,000 | 11,088,000,000 | |
Accumulated Depreciation | 5,383,000,000 | 5,081,000,000 | |
Net Book Value | 6,302,000,000 | 6,007,000,000 | |
Operating segments | Natural Gas Pipelines | NGTL System | Pipeline | |||
Plant, property and equipment | |||
Cost | 8,185,000,000 | 7,813,000,000 | |
Accumulated Depreciation | 3,619,000,000 | 3,410,000,000 | |
Net Book Value | 4,566,000,000 | 4,403,000,000 | |
Operating segments | Natural Gas Pipelines | NGTL System | Compression | |||
Plant, property and equipment | |||
Cost | 2,055,000,000 | 2,038,000,000 | |
Accumulated Depreciation | 1,318,000,000 | 1,253,000,000 | |
Net Book Value | 737,000,000 | 785,000,000 | |
Operating segments | Natural Gas Pipelines | NGTL System | Metering and other | |||
Plant, property and equipment | |||
Cost | 1,032,000,000 | 947,000,000 | |
Accumulated Depreciation | 446,000,000 | 418,000,000 | |
Net Book Value | 586,000,000 | 529,000,000 | |
Operating segments | Natural Gas Pipelines | NGTL System | Property, plant and equipment excluding under construction | |||
Plant, property and equipment | |||
Cost | 11,272,000,000 | 10,798,000,000 | |
Accumulated Depreciation | 5,383,000,000 | 5,081,000,000 | |
Net Book Value | 5,889,000,000 | 5,717,000,000 | |
Operating segments | Natural Gas Pipelines | NGTL System | Under construction | |||
Plant, property and equipment | |||
Cost | 413,000,000 | 290,000,000 | |
Net Book Value | 413,000,000 | 290,000,000 | |
Operating segments | Natural Gas Pipelines | ANR | |||
Plant, property and equipment | |||
Cost | 2,560,000,000 | 2,159,000,000 | |
Accumulated Depreciation | 297,000,000 | 231,000,000 | |
Net Book Value | 2,263,000,000 | 1,928,000,000 | |
Operating segments | Natural Gas Pipelines | ANR | Pipeline | |||
Plant, property and equipment | |||
Cost | 1,087,000,000 | 922,000,000 | |
Accumulated Depreciation | 85,000,000 | 59,000,000 | |
Net Book Value | 1,002,000,000 | 863,000,000 | |
Operating segments | Natural Gas Pipelines | ANR | Compression | |||
Plant, property and equipment | |||
Cost | 741,000,000 | 635,000,000 | |
Accumulated Depreciation | 102,000,000 | 81,000,000 | |
Net Book Value | 639,000,000 | 554,000,000 | |
Operating segments | Natural Gas Pipelines | ANR | Metering and other | |||
Plant, property and equipment | |||
Cost | 617,000,000 | 535,000,000 | |
Accumulated Depreciation | 110,000,000 | 91,000,000 | |
Net Book Value | 507,000,000 | 444,000,000 | |
Operating segments | Natural Gas Pipelines | ANR | Property, plant and equipment excluding under construction | |||
Plant, property and equipment | |||
Cost | 2,445,000,000 | 2,092,000,000 | |
Accumulated Depreciation | 297,000,000 | 231,000,000 | |
Net Book Value | 2,148,000,000 | 1,861,000,000 | |
Operating segments | Natural Gas Pipelines | ANR | Under construction | |||
Plant, property and equipment | |||
Cost | 115,000,000 | 67,000,000 | |
Net Book Value | 115,000,000 | 67,000,000 | |
Operating segments | Natural Gas Pipelines | Other Natural Gas Pipelines | |||
Plant, property and equipment | |||
Cost | 9,770,000,000 | 8,324,000,000 | |
Accumulated Depreciation | 3,200,000,000 | 2,819,000,000 | |
Net Book Value | 6,570,000,000 | 5,505,000,000 | |
Operating segments | Natural Gas Pipelines | Other Natural Gas Pipelines | Property, plant and equipment excluding under construction | |||
Plant, property and equipment | |||
Cost | 8,638,000,000 | 7,277,000,000 | |
Accumulated Depreciation | 3,200,000,000 | 2,819,000,000 | |
Net Book Value | 5,438,000,000 | 4,458,000,000 | |
Operating segments | Natural Gas Pipelines | Other Natural Gas Pipelines | Under construction | |||
Plant, property and equipment | |||
Cost | 1,132,000,000 | 1,047,000,000 | |
Net Book Value | 1,132,000,000 | 1,047,000,000 | |
Operating segments | Natural Gas Pipelines | GTN | Pipeline | |||
Plant, property and equipment | |||
Cost | 1,842,000,000 | 1,685,000,000 | |
Accumulated Depreciation | 588,000,000 | 488,000,000 | |
Net Book Value | 1,254,000,000 | 1,197,000,000 | |
Operating segments | Natural Gas Pipelines | Great Lakes | Pipeline | |||
Plant, property and equipment | |||
Cost | 1,807,000,000 | 1,650,000,000 | |
Accumulated Depreciation | 939,000,000 | 833,000,000 | |
Net Book Value | 868,000,000 | 817,000,000 | |
Operating segments | Natural Gas Pipelines | Foothills | Pipeline | |||
Plant, property and equipment | |||
Cost | 1,671,000,000 | 1,649,000,000 | |
Accumulated Depreciation | 1,180,000,000 | 1,120,000,000 | |
Net Book Value | 491,000,000 | 529,000,000 | |
Operating segments | Natural Gas Pipelines | Other | Pipeline | |||
Plant, property and equipment | |||
Cost | 1,800,000,000 | 1,652,000,000 | |
Accumulated Depreciation | 363,000,000 | 288,000,000 | |
Net Book Value | 1,437,000,000 | 1,364,000,000 | |
Operating segments | Liquids Pipelines | |||
Plant, property and equipment | |||
Cost | 15,615,000,000 | 13,179,000,000 | |
Accumulated Depreciation | 687,000,000 | 439,000,000 | |
Net Book Value | 14,928,000,000 | 12,740,000,000 | |
Operating segments | Liquids Pipelines | Under construction | |||
Plant, property and equipment | |||
Cost | 4,438,000,000 | 6,020,000,000 | |
Net Book Value | 4,438,000,000 | 6,020,000,000 | |
Operating segments | Liquids Pipelines | Keystone | Pipeline | |||
Plant, property and equipment | |||
Cost | 7,931,000,000 | 5,079,000,000 | |
Accumulated Depreciation | 463,000,000 | 286,000,000 | |
Net Book Value | 7,468,000,000 | 4,793,000,000 | |
Operating segments | Liquids Pipelines | Keystone | Property, plant and equipment excluding under construction | |||
Plant, property and equipment | |||
Cost | 11,177,000,000 | 7,159,000,000 | |
Accumulated Depreciation | 687,000,000 | 439,000,000 | |
Net Book Value | 10,490,000,000 | 6,720,000,000 | |
Operating segments | Liquids Pipelines | Keystone | Pumping equipment | |||
Plant, property and equipment | |||
Cost | 964,000,000 | 1,118,000,000 | |
Accumulated Depreciation | 80,000,000 | 82,000,000 | |
Net Book Value | 884,000,000 | 1,036,000,000 | |
Operating segments | Liquids Pipelines | Keystone | Tanks and other | |||
Plant, property and equipment | |||
Cost | 2,282,000,000 | 962,000,000 | |
Accumulated Depreciation | 144,000,000 | 71,000,000 | |
Net Book Value | 2,138,000,000 | 891,000,000 | |
Operating segments | Energy | |||
Plant, property and equipment | |||
Cost | 8,414,000,000 | 7,660,000,000 | |
Accumulated Depreciation | 1,924,000,000 | 1,628,000,000 | |
Net Book Value | 6,490,000,000 | 6,032,000,000 | |
Operating segments | Energy | Property, plant and equipment excluding under construction | |||
Plant, property and equipment | |||
Cost | 8,265,000,000 | 7,606,000,000 | |
Accumulated Depreciation | 1,924,000,000 | 1,628,000,000 | |
Net Book Value | 6,341,000,000 | 5,978,000,000 | |
Operating segments | Energy | Under construction | |||
Plant, property and equipment | |||
Cost | 149,000,000 | 54,000,000 | |
Net Book Value | 149,000,000 | 54,000,000 | |
Operating segments | Energy | Natural Gas b Ravenswood | |||
Plant, property and equipment | |||
Cost | 2,140,000,000 | 1,966,000,000 | |
Accumulated Depreciation | 476,000,000 | 377,000,000 | |
Net Book Value | 1,664,000,000 | 1,589,000,000 | |
Operating segments | Energy | Natural Gas - Other | |||
Plant, property and equipment | |||
Cost | 3,214,000,000 | 3,061,000,000 | |
Accumulated Depreciation | 971,000,000 | 846,000,000 | |
Net Book Value | 2,243,000,000 | 2,215,000,000 | |
Operating segments | Energy | Hydro | |||
Plant, property and equipment | |||
Cost | 736,000,000 | 673,000,000 | |
Accumulated Depreciation | 156,000,000 | 126,000,000 | |
Net Book Value | 580,000,000 | 547,000,000 | |
Operating segments | Energy | Wind | |||
Plant, property and equipment | |||
Cost | 970,000,000 | 946,000,000 | |
Accumulated Depreciation | 190,000,000 | 155,000,000 | |
Net Book Value | 780,000,000 | 791,000,000 | |
Operating segments | Energy | Natural Gas Storage | |||
Plant, property and equipment | |||
Cost | 653,000,000 | 677,000,000 | |
Accumulated Depreciation | 99,000,000 | 92,000,000 | |
Net Book Value | 554,000,000 | 585,000,000 | |
Operating segments | Energy | Solar | |||
Plant, property and equipment | |||
Cost | 488,000,000 | 226,000,000 | |
Accumulated Depreciation | 13,000,000 | 2,000,000 | |
Net Book Value | 475,000,000 | 224,000,000 | |
Number of facilities acquired | 4 | ||
Operating segments | Energy | Other | |||
Plant, property and equipment | |||
Cost | 64,000,000 | 57,000,000 | |
Accumulated Depreciation | 19,000,000 | 30,000,000 | |
Net Book Value | 45,000,000 | 27,000,000 | |
Corporate | |||
Plant, property and equipment | |||
Cost | 232,000,000 | 191,000,000 | |
Accumulated Depreciation | 80,000,000 | 61,000,000 | |
Net Book Value | 152,000,000 | 130,000,000 |
EQUITY_INVESTMENTS_Details
EQUITY INVESTMENTS (Details) | 12 Months Ended | 1 Months Ended | 12 Months Ended | 12 Months Ended | |||||||||||||||||||||||||||||||||||||||||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2014 | Dec. 31, 2013 | 31-May-13 | Apr. 30, 2013 | Dec. 31, 2012 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Nov. 30, 2012 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
CAD | CAD | CAD | TC PipeLines, LP | TC PipeLines, LP | TC PipeLines, LP | TC PipeLines, LP | TC PipeLines, LP | Northern Border | Northern Border | Bruce Power | Bruce Power | CrossAlta | CrossAlta | Natural Gas Pipelines | Natural Gas Pipelines | Natural Gas Pipelines | Natural Gas Pipelines | Natural Gas Pipelines | Natural Gas Pipelines | Natural Gas Pipelines | Natural Gas Pipelines | Natural Gas Pipelines | Natural Gas Pipelines | Natural Gas Pipelines | Natural Gas Pipelines | Natural Gas Pipelines | Energy | Energy | Energy | Energy | Energy | Energy | Energy | Energy | Energy | Energy | Energy | Energy | Energy | Energy | Energy | Liquids Pipelines | Liquids Pipelines | Liquids Pipelines | |
USD ($) | USD ($) | CAD | CAD | Northern Border | Northern Border | Northern Border | Northern Border | Iroquois | Iroquois | Iroquois | TQM | TQM | TQM | Other | Other | Other | Other | Other | Other | Bruce A | Bruce A | Bruce A | Bruce B | Bruce B | Bruce B | ASTC Power Partnership | ASTC Power Partnership | ASTC Power Partnership | Portlands Energy | Portlands Energy | Portlands Energy | Grand Rapids | Grand Rapids | Grand Rapids | |||||||||||
CAD | CAD | CAD | TC PipeLines, LP | CAD | CAD | CAD | CAD | CAD | CAD | CAD | CAD | CAD | CAD | CAD | CAD | CAD | CAD | CAD | CAD | CAD | CAD | CAD | CAD | CAD | CAD | CAD | CAD | CAD | CAD | CAD | |||||||||||||||
Equity Investments | |||||||||||||||||||||||||||||||||||||||||||||
Ownership interest (as a percent) | 40.00% | 60.00% | 14.20% | 14.50% | 16.70% | 50.00% | 44.50% | 50.00% | 48.90% | 31.60% | 50.00% | 50.00% | 50.00% | ||||||||||||||||||||||||||||||||
Income/(Loss) from Equity Investments | 522 | 597 | 257 | 76 | 66 | 72 | 43 | 41 | 41 | 12 | 13 | 16 | 32 | 25 | 28 | 1 | 1 | 18 | 209 | 202 | -149 | 105 | 108 | 163 | 8 | 110 | 40 | 36 | 31 | 28 | 0 | 0 | 0 | ||||||||||||
Equity Investments (Note 8) | 5,598 | 5,759 | 587 | 557 | 210 | 188 | 73 | 76 | 68 | 62 | 61 | 57 | 3,944 | 3,988 | 51 | 377 | 29 | 41 | 335 | 343 | 240 | 70 | |||||||||||||||||||||||
TransCanada ownership (as a percent) | 28.30% | 28.90% | 28.90% | 33.30% | 33.30% | ||||||||||||||||||||||||||||||||||||||||
Difference between the carrying value of the investment and the underlying equity in the net assets | 117 | 118 | 776 | 820 | |||||||||||||||||||||||||||||||||||||||||
Ownership interest after acquisition (as a percent) | 100.00% | ||||||||||||||||||||||||||||||||||||||||||||
Distributions received from equity investments | 726 | 725 | 436 | ||||||||||||||||||||||||||||||||||||||||||
Returns of capital | 147 | 120 | 60 | ||||||||||||||||||||||||||||||||||||||||||
Undistributed earnings | 551 | 754 | 883 |
EQUITY_INVESTMENTS_Summarized_
EQUITY INVESTMENTS (Summarized Financial Information of Equity Investments) (Details) (CAD) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Income | |||
Revenues | 4,814 | 4,989 | 3,860 |
Operating and Other Expenses | -3,489 | -3,536 | -3,090 |
Net Income | 1,264 | 1,390 | 717 |
Net Income attributable to TransCanada | 522 | 597 | 257 |
Balance Sheet | |||
Current assets | 1,412 | 1,500 | |
Non current assets | 12,260 | 12,158 | |
Current liabilities | -1,067 | -1,117 | |
Non current liabilities | -3,255 | -2,507 |
RATEREGULATED_BUSINESSES_Detai
RATE-REGULATED BUSINESSES (Details) (CAD) | 0 Months Ended | 12 Months Ended | 1 Months Ended | 12 Months Ended | 1 Months Ended | 0 Months Ended | ||
In Millions, unless otherwise specified | Nov. 28, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Jan. 31, 2011 | Mar. 31, 2013 | Dec. 31, 2012 | Nov. 30, 2013 | Nov. 01, 2012 |
Rate-regulated business | ||||||||
Payment to Reduce Revenue Requirement, Net of Tax | 20 | |||||||
Fixed Toll Term, Period | 6 years | |||||||
Composite depreciation rate | 3.12% | 3.05% | ||||||
U.S. | Bison LLC | ||||||||
Rate-regulated business | ||||||||
Period of operation after which cost and revenue study is required to be filed | 3 years | |||||||
Canadian Mainline | Canadian Regulated Operations | ||||||||
Rate-regulated business | ||||||||
Approved ROE on deemed common equity (as a percent) | 10.10% | 11.50% | 8.08% | |||||
Deemed common equity (as a percent) | 40.00% | 40.00% | 40.00% | |||||
Term of regulatory decisions | 5 years | 5 years | ||||||
NGTL System | Canadian Regulated Operations | ||||||||
Rate-regulated business | ||||||||
Approved ROE on deemed common equity (as a percent) | 9.70% | 10.10% | ||||||
Deemed common equity (as a percent) | 40.00% | 40.00% | ||||||
ANR | U.S. | TC Offshore LLC | ||||||||
Rate-regulated business | ||||||||
Period of operation after which cost and revenue study is required to be filed | 3 years |
RATEREGULATED_BUSINESSES_Detai1
RATE-REGULATED BUSINESSES (Details 2) (CAD) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Regulatory Assets | |||
Total regulatory assets | 1,313 | 1,777 | |
Regulatory Assets (Note 9) | 16 | 42 | |
Regulatory assets, noncurrent | 1,297 | 1,735 | |
Regulatory Liabilities | |||
Total regulatory liabilities | 293 | 236 | |
Less: Current portion included in Accounts Payable and Other | 30 | 7 | |
Regulated liabilities, noncurrent | 263 | 229 | |
Foreign exchange on long-term debt | |||
Regulatory Liabilities | |||
Total regulatory liabilities | 42 | 84 | |
Operating and debt-service regulatory liabilities | |||
Regulatory Liabilities | |||
Total regulatory liabilities | 21 | 5 | |
Remaining Recovery/Settlement Period | 1 year | ||
Postretirement Benefit Costs | |||
Regulatory Liabilities | |||
Total regulatory liabilities | 117 | 104 | |
Long-Term Adjustment Account | |||
Regulatory Liabilities | |||
Total regulatory liabilities | 64 | 0 | |
Remaining Recovery/Settlement Period | 44 years | ||
Other | |||
Regulatory Liabilities | |||
Total regulatory liabilities | 49 | 43 | |
Deferred income taxes | |||
Regulatory Assets | |||
Total regulatory assets | 1,001 | 1,149 | |
Operating and debt-service regulatory assets | |||
Regulatory Assets | |||
Total regulatory assets | 4 | 16 | |
Remaining Recovery/ Settlement Period | 1 year | ||
Operating and debt-service regulatory assets | Operating and debt-service regulatory liabilities | |||
Other disclosures pertaining to regulated assets and liabilities | |||
Amount by which pre-tax operating results would have been higher (lower) if regulatory assets and liabilities had not been recorded | 28 | 76 | -50 |
Pension and Other Postretirement Plans Costs | |||
Regulatory Assets | |||
Total regulatory assets | 236 | 190 | |
Pension and Other Postretirement Plans Costs | Pension and Other Postretirement Plans Costs | |||
Other disclosures pertaining to regulated assets and liabilities | |||
Amount by which pre-tax operating results would have been higher (lower) if regulatory assets and liabilities had not been recorded | 46 | 171 | 61 |
Long-Term Adjustment Account | |||
Regulatory Assets | |||
Total regulatory assets | 0 | 354 | |
Remaining Recovery/ Settlement Period | 31 years | ||
Other | |||
Regulatory Assets | |||
Total regulatory assets | 72 | 68 | |
Other | Other | |||
Other disclosures pertaining to regulated assets and liabilities | |||
Amount by which pre-tax operating results would have been higher (lower) if regulatory assets and liabilities had not been recorded | 2 | 2 | 66 |
Postretirement Benefit Costs | Postretirement Benefit Costs | |||
Other disclosures pertaining to regulated assets and liabilities | |||
Amount by which pre-tax operating results would have been higher (lower) if regulatory assets and liabilities had not been recorded | 13 | 16 | 8 |
Minimum | Foreign exchange on long-term debt | |||
Regulatory Liabilities | |||
Remaining Recovery/Settlement Period | 1 year | ||
Maximum | Foreign exchange on long-term debt | |||
Regulatory Liabilities | |||
Remaining Recovery/Settlement Period | 15 years |
RATEREGULATED_BUSINESSES_Detai2
RATE-REGULATED BUSINESSES (Details 3) (CAD) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Regulated Operations [Abstract] | |||
Allowance for Funds Used During Construction | 95 | 19 | 15 |
GOODWILL_Details
GOODWILL (Details) (CAD) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Goodwill | ||
Balance at the beginning of the period | 3,696 | 3,458 |
Foreign exchange rate changes | 338 | 238 |
Balance at the end of the period | 4,034 | 3,696 |
Natural Gas Pipelines | ||
Goodwill | ||
Balance at the beginning of the period | 2,816 | 2,635 |
Foreign exchange rate changes | 258 | 181 |
Balance at the end of the period | 3,074 | 2,816 |
Energy | ||
Goodwill | ||
Balance at the beginning of the period | 880 | 823 |
Foreign exchange rate changes | 80 | 57 |
Balance at the end of the period | 960 | 880 |
INTANGIBLE_AND_OTHER_ASSETS_De
INTANGIBLE AND OTHER ASSETS (Details) | 12 Months Ended | ||||||||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 |
CAD | CAD | CAD | USD ($) | USD ($) | Sheerness | Sheerness | Sundance A | Sundance A | |
CAD | CAD | CAD | CAD | ||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||
Capital projects under development | 1,286 | 571 | |||||||
PPAs | 272 | 324 | 234 | 273 | 38 | 51 | |||
Deferred income tax assets and charges | 180 | 225 | |||||||
Loans and advances | 167 | 183 | |||||||
Fair value of derivative contracts | 93 | 112 | |||||||
Employee post-retirement benefits | 14 | 16 | |||||||
Other | 692 | 524 | |||||||
Intangibles and Other Assets | 2,704 | 1,955 | |||||||
Note receivable | |||||||||
Notes receivable | 213 | 226 | 184 | 212 | |||||
Interest rate on notes receivable | 6.75% | ||||||||
Current portion of note receivable | 46 | 43 | 40 | 40 | |||||
Amount related to PPAs which are included in intangibles and other assets | |||||||||
Cost | 810 | 810 | 585 | 585 | 225 | 225 | |||
Accumulated Amortization | 538 | 486 | 351 | 312 | 187 | 174 | |||
Net Book Value | 272 | 324 | 234 | 273 | 38 | 51 | |||
Amortization expense | 52 | 52 | 52 | ||||||
Expected annual amortization expense | |||||||||
2015 | 52 | ||||||||
2016 | 52 | ||||||||
2017 | 52 | ||||||||
2018 | 39 | ||||||||
2019 | 39 |
NOTES_PAYABLE_Details
NOTES PAYABLE (Details) | Dec. 31, 2014 | Dec. 31, 2013 | Oct. 01, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2014 |
CAD | CAD | Short-term Debt [Member] | Notes payable | Notes payable | Notes payable | Notes payable | Notes payable | Notes payable | Revolving and demand credit facilities | Revolving and demand credit facilities | Committed, syndicated, revolving, extendible credit facility | Committed, syndicated, revolving, extendible credit facility | Committed, syndicated, revolving, extendible credit facility | Committed, syndicated, revolving, extendible credit facility | Committed, syndicated, revolving, extendible credit facility | Committed, syndicated, revolving, extendible credit facility | Committed, syndicated, revolving, extendible credit facility | Committed, syndicated, revolving, extendible credit facility | Committed, syndicated, revolving, extendible credit facility | Committed, syndicated, revolving, extendible credit facility | Committed, syndicated, revolving, extendible credit facility | Committed, syndicated, revolving, extendible credit facility | Demand credit facility | Demand credit facility | Demand credit facility | Demand credit facility | |
USD ($) | Canadian dollars | Canadian dollars | U.S. dollars | U.S. dollars | U.S. dollars | U.S. dollars | CAD | CAD | TransCanada PipeLines Limited | TransCanada PipeLines Limited | TransCanada PipeLines Limited | TCPL USA | TCPL USA | TCPL USA | TAIL | TAIL | TAIL | Canadian dollars | U.S. dollars | U.S. dollars | TransCanada Pipelines Limited and TransCanada Pipelines USA | TransCanada Pipelines Limited and TransCanada Pipelines USA | TransCanada Pipelines Limited and TransCanada Pipelines USA | Canadian dollars | |||
CAD | CAD | USD ($) | CAD | USD ($) | CAD | CAD | CAD | CAD | CAD | CAD | CAD | CAD | CAD | CAD | TransCanada PipeLines Limited | TCPL USA | TAIL | CAD | CAD | CAD | TransCanada Pipelines Limited and TransCanada Pipelines USA | ||||||
CAD | USD ($) | USD ($) | CAD | ||||||||||||||||||||||||
Notes payable | |||||||||||||||||||||||||||
Outstanding December 31 | 2,467,000,000 | 1,842,000,000 | $170,000,000 | 1,540,000,000 | 751,000,000 | $800,000,000 | 927,000,000 | $1,025,000,000 | 1,091,000,000 | ||||||||||||||||||
Weighted Average Interest Rate per Annum at December 31 | 1.20% | 1.20% | 0.70% | 0.70% | 0.30% | 0.30% | |||||||||||||||||||||
Unused Capacity | 6,700,000,000 | 6,200,000,000 | 3,000,000,000 | 1,000,000,000 | 1,000,000,000 | 600,000,000 | |||||||||||||||||||||
Maximum borrowing capacity | 3,000,000,000 | 1,000,000,000 | 1,000,000,000 | 1,400,000,000 | |||||||||||||||||||||||
Cost to maintain the facility | 6,000,000 | 4,000,000 | 4,000,000 | 2,000,000 | 1,000,000 | 1,000,000 | 1,000,000 | 0 | 0 | 0 | 0 | 0 |
ACCOUNTS_PAYABLE_AND_OTHER_Det
ACCOUNTS PAYABLE AND OTHER (Details) (CAD) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Payables and Accruals [Abstract] | ||
Trade payables | 1,624 | 866 |
Fair value of derivative contracts (Note 23) | 749 | 357 |
Dividends payable | 359 | 338 |
Deferred Income Tax Liabilities (Note 16) | 4 | 26 |
Regulatory Liabilities (Note 9) | 30 | 7 |
Liabilities related to assets held for sale (Note 6) | 0 | 5 |
Other | 130 | 556 |
Accounts payable and other | 2,896 | 2,155 |
OTHER_LONGTERM_LIABILITIES_Det
OTHER LONG-TERM LIABILITIES (Details) (CAD) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Deferred Costs, Noncurrent [Abstract] | ||
Employee post-retirement benefit (Note 22) | 444 | 244 |
Fair value of derivative contracts (Note 23) | 411 | 255 |
Asset retirement obligations | 98 | 83 |
Guarantees (Note 26) | 15 | 18 |
Other | 84 | 56 |
Other Long-Term Liabilities | 1,052 | 656 |
LONGTERM_DEBT_AND_PRINCIPAL_RE
LONG-TERM DEBT AND PRINCIPAL REPAYMENTS (Details) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 |
In Millions, unless otherwise specified | CAD | CAD | TransCanada PipeLines Limited | TransCanada PipeLines Limited | TransCanada PipeLines Limited | TransCanada PipeLines Limited | TransCanada PipeLines Limited | TransCanada PipeLines Limited | TransCanada PipeLines Limited | TransCanada PipeLines Limited | TransCanada PipeLines Limited | TransCanada PipeLines Limited | TransCanada PipeLines Limited | TransCanada PipeLines Limited | TransCanada PipeLines Limited | TransCanada PipeLines Limited | Nova Gas Transmission LTD | Nova Gas Transmission LTD | Nova Gas Transmission LTD | Nova Gas Transmission LTD | Nova Gas Transmission LTD | Nova Gas Transmission LTD | Nova Gas Transmission LTD | Nova Gas Transmission LTD | Nova Gas Transmission LTD | Nova Gas Transmission LTD | Nova Gas Transmission LTD | Nova Gas Transmission LTD | Nova Gas Transmission LTD | Nova Gas Transmission LTD | ANR Pipe Line Company | ANR Pipe Line Company | Gas Transmission Northwest Corporation | Gas Transmission Northwest Corporation | TC PipeLines, LP | TC PipeLines, LP | TC PipeLines, LP | TC PipeLines, LP | TC PipeLines, LP | TC PipeLines, LP | TC PipeLines, LP | TC PipeLines, LP | Great Lakes Gas Transmission Limited Partnership | Great Lakes Gas Transmission Limited Partnership | Tuscarora Gas Transmission Company | Tuscarora Gas Transmission Company | Portland Natural Gas Transmission System | Portland Natural Gas Transmission System | Canadian dollars | Canadian dollars | Canadian dollars | Canadian dollars | Canadian dollars | Canadian dollars | Canadian dollars | U.S. dollars | U.S. dollars | U.S. dollars | U.S. dollars | U.S. dollars | U.S. dollars | U.S. dollars | U.S. dollars | U.S. dollars | U.S. dollars | U.S. dollars | U.S. dollars | U.S. dollars | U.S. dollars | U.S. dollars | U.S. dollars | U.S. dollars | U.S. dollars | U.S. dollars | U.S. dollars | U.S. dollars | U.S. dollars | Maximum |
CAD | CAD | Debentures, Maturity Dates Between 2015 and 2020 | Debentures, Maturity Dates Between 2015 and 2020 | Debentures, Maturity Date of 2021 | Debentures, Maturity Date of 2021 | Debentures, Maturity Date of 2021 | Debentures, Maturity Date of 2021 | Medium-term Notes | Medium-term Notes | Senior Unsecured Notes | Senior Unsecured Notes | Senior Unsecured Notes | Senior Unsecured Notes | CAD | CAD | Debentures and Notes, Maturity Dates between 2016 and 2024 | Debentures and Notes, Maturity Dates between 2016 and 2024 | Debentures and Notes, Maturity Date of 2023 | Debentures and Notes, Maturity Date of 2023 | Debentures and Notes, Maturity Date of 2023 | Debentures and Notes, Maturity Date of 2023 | Medium-Term Notes, Maturity between 2025 and 2030 | Medium-Term Notes, Maturity between 2025 and 2030 | Medium-Term Notes, Maturity Date of 2026 | Medium-Term Notes, Maturity Date of 2026 | Medium-Term Notes, Maturity Date of 2026 | Medium-Term Notes, Maturity Date of 2026 | Senior Unsecured Notes | Senior Unsecured Notes | Senior Unsecured Notes | Senior Unsecured Notes | CAD | CAD | Senior Unsecured Notes | Senior Unsecured Notes | Unsecured Debt | Unsecured Debt | Unsecured Term Loan Facility | Unsecured Term Loan Facility | Senior Unsecured Notes | Senior Unsecured Notes | Secured Debt | Secured Debt | Secured Debt | Secured Debt | TransCanada PipeLines Limited | TransCanada PipeLines Limited | Nova Gas Transmission LTD | Nova Gas Transmission LTD | Nova Gas Transmission LTD | Nova Gas Transmission LTD | Nova Gas Transmission LTD | TransCanada PipeLines Limited | TransCanada PipeLines Limited | Nova Gas Transmission LTD | Nova Gas Transmission LTD | Nova Gas Transmission LTD | Nova Gas Transmission LTD | ANR Pipe Line Company | ANR Pipe Line Company | Gas Transmission Northwest Corporation | Gas Transmission Northwest Corporation | TC PipeLines, LP | TC PipeLines, LP | TC PipeLines, LP | TC PipeLines, LP | TC PipeLines, LP | TC PipeLines, LP | Great Lakes Gas Transmission Limited Partnership | Great Lakes Gas Transmission Limited Partnership | Tuscarora Gas Transmission Company | Tuscarora Gas Transmission Company | Portland Natural Gas Transmission System | Portland Natural Gas Transmission System | Canadian dollars | |||
CAD | CAD | USD ($) | CAD | USD ($) | CAD | CAD | CAD | USD ($) | CAD | USD ($) | CAD | CAD | CAD | USD ($) | CAD | USD ($) | CAD | CAD | CAD | USD ($) | CAD | USD ($) | CAD | CAD | CAD | CAD | CAD | CAD | CAD | CAD | CAD | CAD | CAD | CAD | CAD | CAD | CAD | CAD | CAD | Debentures, Maturity Dates Between 2015 and 2020 | Debentures, Maturity Dates Between 2015 and 2020 | Debentures and Notes, Maturity Dates between 2016 and 2024 | Debentures and Notes, Maturity Dates between 2016 and 2024 | Medium-Term Notes, Maturity between 2025 and 2030 | Medium-Term Notes, Maturity between 2025 and 2030 | Debentures and Notes | Debentures, Maturity Date of 2021 | Debentures, Maturity Date of 2021 | Debentures and Notes, Maturity Date of 2023 | Debentures and Notes, Maturity Date of 2023 | Medium-Term Notes, Maturity Date of 2026 | Medium-Term Notes, Maturity Date of 2026 | Senior Unsecured Notes | Senior Unsecured Notes | Senior Unsecured Notes | Senior Unsecured Notes | Senior Unsecured Notes | Senior Unsecured Notes | Unsecured Debt | Unsecured Debt | Unsecured Term Loan Facility | Unsecured Term Loan Facility | Senior Unsecured Notes | Senior Unsecured Notes | Secured Debt | Secured Debt | Secured Debt | Secured Debt | Nova Gas Transmission LTD | |||||||||
CAD | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | Debentures and Notes | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Current and Long-Term Debt, Outstanding December 31 | 24,757 | 22,865 | 20,916 | 19,125 | 749 | 874 | $400 | 464 | $400 | 425 | 4,048 | 4,799 | $13,526 | 15,655 | $12,276 | 13,027 | 1,099 | 1,129 | 325 | 378 | $200 | 232 | $200 | 213 | 504 | 504 | $33 | 38 | $33 | 34 | 502 | 459 | 377 | 346 | 1,368 | 1,308 | 405 | 372 | 383 | 404 | 580 | 532 | 367 | 356 | 23 | 25 | 105 | 117 | $432 | $432 | $325 | $325 | $350 | $350 | $330 | $380 | $500 | $500 | $316 | $335 | $20 | $24 | $90 | $110 | ||||||||||||||
Interest Rate | 5.70% | 5.70% | 5.00% | 5.00% | 5.00% | 5.00% | 8.90% | 8.90% | 5.50% | 5.50% | 4.70% | 4.70% | 1.40% | 1.40% | 1.40% | 1.40% | 7.80% | 7.80% | 4.00% | 4.00% | 6.10% | 6.10% | 10.90% | 10.90% | 11.50% | 11.50% | 7.40% | 7.40% | 9.90% | 9.90% | 7.90% | 7.90% | 7.50% | 7.50% | ||||||||||||||||||||||||||||||||||||||||||||
Long-term Debt, Current Maturities | 1,797 | 973 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-term Debt, Excluding Current Maturities | 22,960 | 21,892 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-Term Debt Issued with Retraction Provision | 225 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument, Redemption Price, Percentage | 8.00% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Repayments of Long-term Debt [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-term Debt, Maturities, Repayments of Principal in Next Twelve Months | 1,797 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-term Debt, Maturities, Repayments of Principal in Year Two | 2,225 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-term Debt, Maturities, Repayments of Principal in Year Three | 846 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-term Debt, Maturities, Repayments of Principal in Year Four | 1,766 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-term Debt, Maturities, Repayments of Principal in Year Five | 1,007 |
LONGTERM_DEBT_ISSUED_Details
LONG-TERM DEBT ISSUED (Details) | 1 Months Ended | |||||||||
Feb. 28, 2014 | Oct. 31, 2013 | Oct. 31, 2013 | Jul. 31, 2013 | Jul. 31, 2013 | Jul. 31, 2013 | Jan. 31, 2013 | Aug. 31, 2012 | Mar. 31, 2012 | Oct. 31, 2014 | |
TransCanada PipeLines Limited | TransCanada PipeLines Limited | TransCanada PipeLines Limited | TransCanada PipeLines Limited | TransCanada PipeLines Limited | TransCanada PipeLines Limited | TransCanada PipeLines Limited | TransCanada PipeLines Limited | TransCanada PipeLines Limited | TC PipeLines, LP | |
4.63% senior unsecured notes, due March 2034 | 3.75% senior unsecured notes, due October 16, 2023 | 5.00% senior unsecured notes, due October 16, 2043 | 0.95% floating rate notes, maturing June 30, 2016 | 3.69% medium term notes, due July 19, 2023 | 4.55% medium term notes, due November 15, 2041 | 0.75 % senior notes, due January 15, 2016 | 2.5 % senior unsecured notes, due August 1, 2022 | 0.875 % senior unsecured notes, due March 2, 2015 | Medium-Term Loan, Floating Rate, due July 2018 | |
USD ($) | USD ($) | USD ($) | USD ($) | CAD | CAD | USD ($) | USD ($) | USD ($) | USD ($) | |
Debt Instrument [Line Items] | ||||||||||
Proceeds from Issuance of Debt | $1,250,000,000 | $625,000,000 | $625,000,000 | $500,000,000 | 450,000,000 | 300,000,000 | $750,000,000 | $1,000,000,000 | $500,000,000 | $500,000,000 |
Debt Instrument, Interest Rate, Stated Percentage | 4.63% | 3.75% | 5.00% | 3.69% | 4.55% | 0.75% | 2.50% | 0.88% |
LONGTERM_DEBT_RETIRED_Details
LONG-TERM DEBT RETIRED (Details) | 1 Months Ended | |||||||
In Millions, unless otherwise specified | Jun. 30, 2014 | Feb. 28, 2014 | Jan. 31, 2014 | Aug. 31, 2013 | Jun. 30, 2013 | 31-May-12 | Jun. 30, 2014 | Dec. 31, 2012 |
TransCanada PipeLines Limited | TransCanada PipeLines Limited | TransCanada PipeLines Limited | TransCanada PipeLines Limited | TransCanada PipeLines Limited | TransCanada PipeLines Limited | Nova Gas Transmission LTD | Nova Gas Transmission LTD | |
Debentures, 11.10% | Medium-Term Notes at 5.05% | Medium-Term Notes, 5.65% | Senior Unsecured Notes 5.05% | 4.00% senior unsecured notes | 8.63% senior unsecured notes | Debentures, 11.20% | 8.50% debentures | |
CAD | CAD | CAD | USD ($) | USD ($) | USD ($) | CAD | USD ($) | |
Debt Instrument [Line Items] | ||||||||
Repayments of Debt | 125 | 300 | 450 | $500 | $350 | $200 | 53 | $175 |
Debt Instrument, Interest Rate, Stated Percentage | 11.10% | 5.05% | 5.65% | 5.05% | 4.00% | 8.63% | 11.20% | 8.50% |
LONGTERM_DEBT_INTEREST_EXPENSE
LONG-TERM DEBT - INTEREST EXPENSE AND PAYMENTS (Details) (CAD) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Interest Expense [Abstract] | |||
Interest Costs Capitalized | -259 | -287 | -300 |
Amortization of Financing Costs and Discounts | 55 | -21 | 7 |
Interest expense (Note 15) | 1,198 | 985 | 976 |
Interest payments on long-term debt and junior subordinated notes, net of interest capitalized on construction projects | 1,123 | 985 | 966 |
Notes payable | |||
Interest Expense [Abstract] | |||
Interest Expense, Debt, Excluding Amortization | 15 | 12 | 16 |
Total long-term debt (excluding junior subordinated notes) | |||
Interest Expense [Abstract] | |||
Interest Expense, Debt, Excluding Amortization | 1,317 | 1,216 | 1,190 |
Junior subordinated notes | |||
Interest Expense [Abstract] | |||
Interest Expense, Debt, Excluding Amortization | 70 | 65 | 63 |
INCOME_TAXES_Details
INCOME TAXES (Details) (CAD) | 1 Months Ended | 12 Months Ended | ||
In Millions, unless otherwise specified | Jun. 30, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Current | ||||
Canada | 103 | 27 | 167 | |
Foreign | 42 | 16 | 14 | |
Total | 145 | 43 | 181 | |
Deferred | ||||
Canada | 309 | 245 | 69 | |
Foreign | 377 | 323 | 216 | |
Total | 686 | 568 | 285 | |
Total Income Tax Expense/(Recovery) | 831 | 611 | 466 | |
Geographic Components of Income | ||||
Canada | 1,146 | 1,224 | 842 | |
Foreign | 1,678 | 1,298 | 1,096 | |
Income before Income Taxes | 2,824 | 2,522 | 1,938 | |
Reconciliation of Income Tax Expense | ||||
Income before Income Taxes | 2,824 | 2,522 | 1,938 | |
Federal and provincial statutory tax rate | 25.00% | 25.00% | 25.00% | |
Expected income tax expense | 706 | 631 | 485 | |
Income tax differential related to regulated operations | 129 | -13 | 41 | |
Higher/(lower) effective foreign tax rates | 25 | 33 | -12 | |
Income from equity investments and non-controlling interests | -38 | -28 | -27 | |
Tax legislation change | -25 | 0 | -25 | 0 |
Other | 9 | 13 | -21 | |
Total Income Tax Expense/(Recovery) | 831 | 611 | 466 | |
Deferred Income Tax Assets | ||||
Operating loss carryforwards | 1,266 | 826 | ||
Deferred amounts | 215 | 223 | ||
Unrealized foreign exchange losses on long-term debt | 140 | 0 | ||
Financial Instruments | 104 | 0 | ||
Other | 248 | 128 | ||
Total | 1,973 | 1,177 | ||
Less: Valuation allowance | 125 | 0 | ||
Deferred Tax Assets, Net of Valuation Allowance | 1,848 | 1,177 | ||
Deferred Income Tax Liabilities | ||||
Difference in accounting and tax bases of plant, property and equipment and PPAs | 5,548 | 4,245 | ||
Equity investments | 648 | 682 | ||
Taxes on future revenue requirement | 253 | 291 | ||
Unrealized foreign exchange gains on long-term debt | 0 | 35 | ||
Other | 71 | 170 | ||
Total | 6,520 | 5,423 | ||
Net Deferred Income Tax Liabilities | 4,672 | 4,246 | ||
Deferred Income Tax Assets | ||||
Deferred income tax assets (Note 16) | 427 | 119 | ||
Intangible and Other Assets | 180 | 225 | ||
Total | 607 | 344 | ||
Deferred Income Tax Liabilities | ||||
Accounts Payable and Other | 4 | 26 | ||
Deferred Income Tax Liabilities | 5,275 | 4,564 | ||
Total | 5,279 | 4,590 | ||
Net Deferred Income Tax Liabilities | ||||
Net Deferred Income Tax Liabilities | 4,672 | 4,246 |
INCOME_TAXES_Details_2
INCOME TAXES (Details 2) | 12 Months Ended | ||||||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 |
CAD | CAD | CAD | Canada federal and provincial | Canada federal and provincial | U.S. federal | U.S. federal | |
CAD | CAD | USD ($) | USD ($) | ||||
Net operating loss carryforwards | |||||||
Unused net operating loss carryforwards | 1,131 | 1,026 | $2,267 | $1,432 | |||
Deferred income tax liabilities on the unremitted earnings of foreign investments | 236 | 182 | |||||
Income tax payments, net of refunds | 109 | 202 | -190 |
INCOME_TAXES_Details_3
INCOME TAXES (Details 3) (CAD) | 1 Months Ended | 12 Months Ended | ||
In Millions, unless otherwise specified | Jun. 30, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Reconciliation of the annual changes in the total unrecognized tax benefit | ||||
Unrecognized tax benefits at beginning of year | 23 | 49 | 52 | |
Gross increases b tax positions in prior years | 3 | 3 | 2 | |
Gross decreases b tax positions in prior years | -8 | -28 | -6 | |
Gross increases b tax positions in current year | 1 | 2 | 9 | |
Lapses of statute of limitations | -1 | -3 | -8 | |
Unrecognized tax benefits at end of year | 18 | 23 | 49 | |
Tax adjustment | 25 | 0 | 25 | 0 |
Income tax interest and penalties | ||||
Interest expense (reversal) reflected within net tax expense | 1 | 1 | -2 | |
Accrued interest expense | 5 | 6 |
JUNIOR_SUBORDINATED_NOTES_Deta
JUNIOR SUBORDINATED NOTES (Details) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2014 |
In Millions, unless otherwise specified | CAD | CAD | TRANSCANADA PIPELINES LIMITED | TRANSCANADA PIPELINES LIMITED | TRANSCANADA PIPELINES LIMITED | TRANSCANADA PIPELINES LIMITED | London Interbank Offered Rate (LIBOR) [Member] |
Junior subordinated notes | Junior subordinated notes | Junior subordinated notes | Junior subordinated notes | TRANSCANADA PIPELINES LIMITED | |||
USD ($) | CAD | USD ($) | CAD | Junior subordinated notes | |||
Debt Instrument [Line Items] | |||||||
Amount outstanding | 1,160 | 1,063 | $1,000 | 1,160 | $1,000 | 1,063 | |
Effective interest rate (as a percent) | 6.50% | 6.50% | 6.50% | 6.50% | |||
Interest rate until May 15, 2017 (as a percent) | 6.35% | 6.35% | |||||
Interest rate margin after May 15, 2017 (as a percent) | 2.21% | ||||||
Optional period for which payment of interest can be deferred | 10 years | 10 years | |||||
Redemption price as a percentage of principal amount plus accrued and unpaid interest to the date of redemption | 100.00% | 100.00% |
NONCONTROLLING_INTERESTS_Detai
NON-CONTROLLING INTERESTS (Details) (CAD) | 12 Months Ended | 0 Months Ended | ||||||
In Millions, except Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Oct. 15, 2013 | Mar. 05, 2014 | Aug. 01, 2014 | Jul. 31, 2014 | 1-May-13 |
Non-controlling interest included in the Consolidated Balance Sheet | ||||||||
Non-controlling interest | 1,583 | 1,611 | ||||||
Non-controlling interests included in the Consolidated Statement of Income | ||||||||
Non-controlling interest | 153 | 125 | 118 | |||||
TC PipeLines, LP | ||||||||
Preferred Shares of TCPL | ||||||||
Fees received for services provided | 3 | 3 | 3 | |||||
Portland | ||||||||
Preferred Shares of TCPL | ||||||||
Fees received for services provided | 8 | 7 | 7 | |||||
TransCanada PipeLines Limited | Series U | ||||||||
Preferred Shares of TCPL | ||||||||
Number of shares outstanding | 4,000,000 | |||||||
Preferred stock dividend rate | 5.60% | |||||||
Redemption price per share (in Canadian dollars per share) | 50 | |||||||
Accrued and unpaid dividends, in CAD per share | 0.5907 | |||||||
TransCanada PipeLines Limited | Series Y | ||||||||
Preferred Shares of TCPL | ||||||||
Number of shares outstanding | 4,000,000 | |||||||
Preferred stock dividend rate | 5.60% | |||||||
Redemption price per share (in Canadian dollars per share) | 50 | |||||||
Accrued and unpaid dividends, in CAD per share | 0.2455 | |||||||
Noncontrolling Interest | ||||||||
Non-controlling interests included in the Consolidated Statement of Income | ||||||||
Non-controlling interest | 15 | 12 | 5 | |||||
Noncontrolling Interest | TC PipeLines, LP | ||||||||
Non-controlling interest included in the Consolidated Balance Sheet | ||||||||
Non-controlling interest | 1,479 | 1,323 | ||||||
Non-controlling interests included in the Consolidated Statement of Income | ||||||||
Non-controlling interest | 136 | 93 | 91 | |||||
Additional information | ||||||||
Percentage of non-controlling interests | 71.70% | 71.10% | 66.70% | |||||
Noncontrolling Interest | Portland | ||||||||
Non-controlling interest included in the Consolidated Balance Sheet | ||||||||
Non-controlling interest | 104 | 94 | ||||||
Non-controlling interests included in the Consolidated Statement of Income | ||||||||
Non-controlling interest | 15 | 12 | 5 | |||||
Additional information | ||||||||
Percentage of non-controlling interests | 38.30% | 38.30% | 38.30% | |||||
Noncontrolling Interest | TransCanada PipeLines Limited | ||||||||
Non-controlling interest included in the Consolidated Balance Sheet | ||||||||
Preferred shares of TCPL | 0 | 194 | ||||||
Non-controlling interests included in the Consolidated Statement of Income | ||||||||
Preferred shares of TCPL | 2 | 20 | 22 |
COMMON_SHARES_Details
COMMON SHARES (Details) (CAD) | 12 Months Ended | ||
In Millions, except Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Changes in common shares during the period | |||
Outstanding at the beginning of the period (in shares) | 707,000,000 | ||
Outstanding at the beginning of the period | 12,149 | ||
Exercise of options (in shares) | 1,221,000 | 1,980,000 | 1,600,000 |
Outstanding at the end of the period (in shares) | 709,000,000 | 707,000,000 | |
Outstanding at the end of the period | 12,202 | 12,149 | |
Net Income per Share | |||
Basic (in shares) | 708,000,000 | 707,000,000 | 705,000,000 |
Diluted (in shares) | 710,000,000 | 708,000,000 | 706,000,000 |
Common Shares | |||
Changes in common shares during the period | |||
Outstanding at the beginning of the period (in shares) | 707,441,000 | 705,461,000 | 703,861,000 |
Outstanding at the beginning of the period | 12,149 | 12,069 | 12,011 |
Exercise of options (in shares) | 1,221,000 | 1,980,000 | 1,600,000 |
Exercise of options | 53 | 80 | 58 |
Outstanding at the end of the period (in shares) | 708,662,000 | 707,441,000 | 705,461,000 |
Outstanding at the end of the period | 12,202 | 12,149 | 12,069 |
Net Income per Share | |||
Basic (in shares) | 708,000,000 | 706,700,000 | 704,600,000 |
Diluted (in shares) | 709,600,000 | 707,700,000 | 705,700,000 |
COMMON_SHARES_Details_2
COMMON SHARES (Details 2) (CAD) | 12 Months Ended | |||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Number of Options | ||||
Outstanding at the beginning of the period (in shares) | 7,393 | 7,434 | 7,100 | |
Granted (in shares) | 2,292 | 1,939 | 1,978 | |
Exercised (in shares) | -1,221 | -1,980 | -1,600 | |
Forfeited (in shares) | -44 | |||
Outstanding at the end of the period (in shares) | 8,464 | 7,393 | 7,434 | |
Weighted Average Exercise Prices | ||||
Outstanding at the beginning of the period (in Canadian dollars per share) | 40.57 | 37.69 | 35.44 | |
Granted (in Canadian dollars per share) | 49.03 | 47.09 | 42.03 | |
Exercised (in Canadian dollars per share) | 43 | 36.12 | 33.13 | |
Forfeited (in Canadian dollars per share) | 36.55 | |||
Outstanding at the end of the period (in Canadian dollars per share) | 43.17 | 40.57 | 37.69 | |
Options Exercisable | ||||
Options Exercisable (in shares) | 4,902 | 3,954 | 4,588 | 5,165 |
COMMON_SHARES_Details_3
COMMON SHARES (Details 3) (CAD) | 12 Months Ended | ||
In Millions, except Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Options Outstanding | |||
Number of Options (in shares) | 8,464,000 | ||
Weighted Average Exercise Price (in Canadian dollars per share) | 43.17 | ||
Weighted Average Remaining Contractual Life | 4 years 3 months 17 days | ||
Options Exercisable | |||
Number of Options (in shares) | 4,902,000 | ||
Weighted Average Exercise Price (in Canadian dollars per share) | 39.81 | ||
Weighted Average Remaining Contractual Life | 3 years 3 months 18 days | ||
Additional disclosure | |||
Common shares reserved for future issuance under stock option plan | 8,200,000 | ||
Weighted average fair value of options granted (in Canadian dollars per share) | 5.54 | 5.74 | 5.08 |
Contractual life of options granted | 7 years | ||
Award vesting right percentage | 33.30% | ||
Award vesting period | 3 years | ||
Weighted average assumptions used in binomial model for determining the fair value of awards granted | |||
Expected life (years) | 6 years | 6 years | 5 years 10 months 24 days |
Interest rate (as a percent) | 1.80% | 1.70% | 1.60% |
Volatility (as a percent) | 17.00% | 18.00% | 19.00% |
Dividend yield (as a percent) | 3.80% | 3.70% | 4.20% |
Forfeiture rate (as a percent) | 5.00% | 15.00% | 15.00% |
Amount expensed for stock awards, with a corresponding increase in additional paid-in capital | 9 | 6 | 5 |
Total intrinsic value of options exercised | 68 | 25 | 18 |
Fair value of options that have vested | 113 | 65 | 49 |
Total options vested | 2,000,000 | 1,300,000 | 1,000,000 |
Aggregate intrinsic value of total options exercisable | 85 | ||
Total intrinsic value of options outstanding | 118 | ||
Range of exercise price per share $30.10 to $36.26 | |||
Options Outstanding | |||
Number of Options (in shares) | 1,410,000 | ||
Weighted Average Exercise Price (in Canadian dollars per share) | 33.85 | ||
Weighted Average Remaining Contractual Life | 1 year 8 months 12 days | ||
Options Exercisable | |||
Number of Options (in shares) | 1,410,000 | ||
Weighted Average Exercise Price (in Canadian dollars per share) | 33.85 | ||
Weighted Average Remaining Contractual Life | 1 year 8 months 12 days | ||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, End of Period [Abstract] | |||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Lower Range Limit | 30.1 | ||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Upper Range Limit | 36.26 | ||
Range of exercise price per share $36.90 to $41.65 | |||
Options Outstanding | |||
Number of Options (in shares) | 1,101,000 | ||
Weighted Average Exercise Price (in Canadian dollars per share) | 38.24 | ||
Weighted Average Remaining Contractual Life | 3 years 1 month 6 days | ||
Options Exercisable | |||
Number of Options (in shares) | 1,101,000 | ||
Weighted Average Exercise Price (in Canadian dollars per share) | 38.24 | ||
Weighted Average Remaining Contractual Life | 3 years 1 month 6 days | ||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, End of Period [Abstract] | |||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Lower Range Limit | 36.9 | ||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Upper Range Limit | 41.65 | ||
Range of exercise price per share $41.95 to $45.29 | |||
Options Outstanding | |||
Number of Options (in shares) | 1,819,000 | ||
Weighted Average Exercise Price (in Canadian dollars per share) | 42.04 | ||
Weighted Average Remaining Contractual Life | 4 years 2 months 11 days | ||
Options Exercisable | |||
Number of Options (in shares) | 1,464,000 | ||
Weighted Average Exercise Price (in Canadian dollars per share) | 42.02 | ||
Weighted Average Remaining Contractual Life | 4 years 2 months 11 days | ||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, End of Period [Abstract] | |||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Lower Range Limit | 41.95 | ||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Upper Range Limit | 45.29 | ||
Range of exercise price per share $47.09 | |||
Options Outstanding | |||
Number of Options (in shares) | 1,842,000 | ||
Weighted Average Exercise Price (in Canadian dollars per share) | 47.09 | ||
Weighted Average Remaining Contractual Life | 5 years 1 month 6 days | ||
Options Exercisable | |||
Number of Options (in shares) | 847,000 | ||
Weighted Average Exercise Price (in Canadian dollars per share) | 47.09 | ||
Weighted Average Remaining Contractual Life | 5 years 1 month 6 days | ||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, End of Period [Abstract] | |||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Upper Range Limit | 47.09 | ||
Range of exercise price per share $49.03 | |||
Options Outstanding | |||
Number of Options (in shares) | 2,292,000 | ||
Weighted Average Exercise Price (in Canadian dollars per share) | 49.03 | ||
Weighted Average Remaining Contractual Life | 6 years 2 months 12 days | ||
Options Exercisable | |||
Number of Options (in shares) | 80,000 | ||
Weighted Average Exercise Price (in Canadian dollars per share) | 49.03 | ||
Weighted Average Remaining Contractual Life | 6 years 2 months 6 days | ||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, End of Period [Abstract] | |||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Upper Range Limit | 49.03 |
COMMON_SHARES_Details_4
COMMON SHARES (Details 4) | Dec. 31, 2014 |
right | |
Shareholder Rights Plan | |
Number of rights entitled to each common share | 1 |
Number of common shares entitled to be purchased under each right | 2 |
PREFERRED_SHARES_Details
PREFERRED SHARES (Details) (CAD) | 12 Months Ended | 0 Months Ended | 12 Months Ended | 1 Months Ended |
In Millions, except Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Jan. 31, 2014 |
Preferred Shares [Line Items] | ||||
Preferred shares (Note 20) | 2,255 | 2,255 | 1,813 | |
Preferred Stock, Redeemed on Designated Conversion Date, Price per Share | 25 | 25 | ||
Period of Government of Canada bond or treasury bill considered for calculation of dividend yield per annum | 90 days | |||
Preferred Stock Period of Bond Considered for Dividend Yield Calculation | 5 years | |||
Series 1 | ||||
Preferred Shares [Line Items] | ||||
Preferred shares, authorized | 9,498,423 | 9,498,423 | 9,498,423 | |
Preferred shares, outstanding | 9,498,423 | 9,498,423 | 9,498,423 | |
Preferred stock, current yield (percentage) | 3.27% | |||
Annual Dividend Rate per Share (in Canadian dollars per share) | 0.82 | 0.82 | ||
Redemption price per share (in Canadian dollars per share) | 25 | 25 | 25 | |
Preferred shares (Note 20) | 233 | 233 | 539 | |
Period of subsequent interval for redemption of preferred stock | 5 years | |||
Period of subsequent interval for conversion of preferred stock | 5 years | |||
Conversion of Stock, Shares Converted | 12,501,577 | |||
Series 2 | ||||
Preferred Shares [Line Items] | ||||
Preferred shares, authorized | 12,502,000 | 12,502,000 | ||
Preferred stock, current yield (percentage) | 2.82% | |||
Redemption price per share (in Canadian dollars per share) | 25.5 | 25.5 | ||
Preferred shares (Note 20) | 306 | 306 | 0 | |
Series 3 | ||||
Preferred Shares [Line Items] | ||||
Preferred shares, authorized | 14,000,000 | 14,000,000 | 14,000,000 | |
Preferred shares, outstanding | 14,000,000 | 14,000,000 | 14,000,000 | |
Preferred stock, current yield (percentage) | 4.00% | |||
Annual Dividend Rate per Share (in Canadian dollars per share) | 1 | 1 | ||
Redemption price per share (in Canadian dollars per share) | 25 | 25 | 25 | |
Preferred shares (Note 20) | 343 | 343 | 343 | |
Period of subsequent interval for redemption of preferred stock | 5 years | |||
Period of subsequent interval for conversion of preferred stock | 5 years | |||
Series 5 | ||||
Preferred Shares [Line Items] | ||||
Preferred shares, authorized | 14,000,000 | 14,000,000 | 14,000,000 | |
Preferred shares, outstanding | 14,000,000 | 14,000,000 | 14,000,000 | |
Preferred stock, current yield (percentage) | 4.40% | |||
Annual Dividend Rate per Share (in Canadian dollars per share) | 1.1 | 1.1 | ||
Redemption price per share (in Canadian dollars per share) | 25 | 25 | 25 | |
Preferred shares (Note 20) | 342 | 342 | 342 | |
Period of subsequent interval for redemption of preferred stock | 5 years | |||
Period of subsequent interval for conversion of preferred stock | 5 years | |||
Series 7 | ||||
Preferred Shares [Line Items] | ||||
Preferred shares, authorized | 24,000,000 | 24,000,000 | 24,000,000 | |
Preferred shares, outstanding | 24,000,000 | 24,000,000 | 24,000,000 | |
Preferred stock, current yield (percentage) | 4.00% | |||
Annual Dividend Rate per Share (in Canadian dollars per share) | 1 | 1 | ||
Redemption price per share (in Canadian dollars per share) | 25 | 25 | 25 | |
Preferred shares (Note 20) | 589 | 589 | 589 | |
Period of subsequent interval for redemption of preferred stock | 5 years | |||
Period of subsequent interval for conversion of preferred stock | 5 years | |||
Series 9 | ||||
Preferred Shares [Line Items] | ||||
Preferred shares, authorized | 18,000,000 | 18,000,000 | 18,000,000 | |
Preferred shares, outstanding | 18,000,000 | 18,000,000 | 18,000,000 | |
Preferred stock, current yield (percentage) | 4.25% | |||
Annual Dividend Rate per Share (in Canadian dollars per share) | 1.06 | 1.06 | ||
Redemption price per share (in Canadian dollars per share) | 25 | 25 | 25 | |
Preferred shares (Note 20) | 442 | 442 | 0 | |
Period of subsequent interval for redemption of preferred stock | 5 years | |||
Period of subsequent interval for conversion of preferred stock | 5 years | |||
Number of shares issued | 18,000,000 | |||
Shares Issued, Price Per Share | 25 | |||
Gross proceeds from public offering of preferred shares | 450 | |||
Government of Canada, Treasury Bill Rate | Series 2 | ||||
Preferred Shares [Line Items] | ||||
Fixed percentage added to government of Canada bond or treasury bill rate, for calculating dividend yield per annum | 1.92% | 1.92% | ||
Government of Canada, Treasury Bill Rate | Series 4 | ||||
Preferred Shares [Line Items] | ||||
Fixed percentage added to government of Canada bond or treasury bill rate, for calculating dividend yield per annum | 1.28% | 1.28% | ||
Government of Canada, Treasury Bill Rate | Series 6 | ||||
Preferred Shares [Line Items] | ||||
Fixed percentage added to government of Canada bond or treasury bill rate, for calculating dividend yield per annum | 1.54% | 1.54% | ||
Government of Canada, Treasury Bill Rate | Series 8 | ||||
Preferred Shares [Line Items] | ||||
Fixed percentage added to government of Canada bond or treasury bill rate, for calculating dividend yield per annum | 2.38% | 2.38% | ||
Government of Canada, Treasury Bill Rate | Series 10 | ||||
Preferred Shares [Line Items] | ||||
Fixed percentage added to government of Canada bond or treasury bill rate, for calculating dividend yield per annum | 2.35% | |||
Government of Canada, Five-Year Bond Yield | Series 1 | ||||
Preferred Shares [Line Items] | ||||
Fixed percentage added to government of Canada bond or treasury bill rate, for calculating dividend yield per annum | 1.92% | 1.92% | ||
Government of Canada, Five-Year Bond Yield | Series 3 | ||||
Preferred Shares [Line Items] | ||||
Fixed percentage added to government of Canada bond or treasury bill rate, for calculating dividend yield per annum | 1.28% | 1.28% | ||
Government of Canada, Five-Year Bond Yield | Series 5 | ||||
Preferred Shares [Line Items] | ||||
Fixed percentage added to government of Canada bond or treasury bill rate, for calculating dividend yield per annum | 1.54% | 1.54% | ||
Government of Canada, Five-Year Bond Yield | Series 7 | ||||
Preferred Shares [Line Items] | ||||
Fixed percentage added to government of Canada bond or treasury bill rate, for calculating dividend yield per annum | 2.38% | 2.38% | ||
Government of Canada, Five-Year Bond Yield | Series 9 | ||||
Preferred Shares [Line Items] | ||||
Fixed percentage added to government of Canada bond or treasury bill rate, for calculating dividend yield per annum | 2.35% | 2.35% |
OTHER_COMPREHENSIVE_INCOME_AND2
OTHER COMPREHENSIVE INCOME AND ACCUMULATED OTHER COMPREHENSIVE LOSS (Details) (CAD) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Before tax amount | |||
Foreign currency translation gains and losses on net investments in foreign operations | 462 | 269 | -97 |
Change in fair value of net investment hedges | -373 | -323 | 59 |
Reclassification to Net Income of gains and losses on cash flow hedges | -95 | 60 | 219 |
Unrealized actuarial gains and losses on pension and other post-retirement benefit plans | -146 | 96 | -104 |
Reclassification to Net Income of actuarial gains and losses and prior service costs on pension and other post-retirement benefit plans | 25 | 34 | 22 |
Other comprehensive loss on Equity Investments | -272 | 313 | -93 |
Other comprehensive income (loss) | -517 | 570 | 67 |
Income tax recovery/(expense) | |||
Foreign currency translation gains and losses on net investments in foreign operations | 55 | 114 | -32 |
Change in fair value of net investment hedges | -97 | -84 | 15 |
Change in fair value of cash flow hedges | 49 | -50 | -13 |
Reclassification to Net Income of gains and losses on cash flow hedges | 40 | -19 | -81 |
Unrealized actuarial gains and losses on pension and other post-retirement benefit plans | 44 | -29 | 31 |
Reclassification to Net Income of actuarial gains and losses and prior service costs on pension and other post-retirement benefit plans | -7 | -11 | 0 |
Other comprehensive loss on Equity Investments | 68 | -79 | 23 |
Other comprehensive income (loss) | 346 | 10 | -87 |
Net of tax amount | |||
Foreign currency translation gains and losses on net investments in foreign operations | 517 | 383 | -129 |
Change in fair value of net investment hedges | -276 | -239 | 44 |
Change in fair value of cash flow hedges | -69 | 71 | 48 |
Reclassification to Net Income of gains and losses on cash flow hedges | -55 | 41 | 138 |
Unrealized actuarial gains and losses on pension and other post-retirement benefit plans | -102 | 67 | -73 |
Reclassification to Net Income of actuarial gains and losses and prior service costs on pension and other post-retirement benefit plans | 18 | 23 | 22 |
Other comprehensive loss on Equity Investments | -204 | 234 | -70 |
Other Comprehensive Income/(Loss) (Note 21) | -171 | 580 | -20 |
Other Comprehensive Income (Loss), Unrealized Gain (Loss) on Derivatives Arising During Period, before Tax | -118 | 121 | 61 |
OTHER_COMPREHENSIVE_INCOME_AND3
OTHER COMPREHENSIVE INCOME AND ACCUMULATED OTHER COMPREHENSIVE LOSS (Details 2) (CAD) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
AOCI Balance | -934 | -1,448 | -1,449 |
Other comprehensive income/(loss) before reclassifications | -266 | 435 | -156 |
Amounts reclassified from Accumulated Other Comprehensive Loss | -35 | 79 | 157 |
Net current period other comprehensive (loss)/income | -301 | 514 | 1 |
AOCI Balance | -1,235 | -934 | -1,448 |
Other comprehensive income/(loss) before reclassifications attributable to noncontrolling interest | 130 | 66 | -21 |
Cash flow hedge losses expected to be reclassified within the next twelve months, before tax | 95 | ||
Cash flow hedge losses expected to be reclassified within the next twelve months, net of tax | 55 | ||
Currency translation adjustments | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
AOCI Balance | -629 | -707 | -643 |
Other comprehensive income/(loss) before reclassifications | 111 | 78 | -64 |
Amounts reclassified from Accumulated Other Comprehensive Loss | 0 | 0 | 0 |
Net current period other comprehensive (loss)/income | 111 | 78 | -64 |
AOCI Balance | -518 | -629 | -707 |
Cash flow hedges | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
AOCI Balance | -4 | -116 | -302 |
Other comprehensive income/(loss) before reclassifications | -69 | 71 | 48 |
Amounts reclassified from Accumulated Other Comprehensive Loss | -55 | 41 | 138 |
Net current period other comprehensive (loss)/income | -124 | 112 | 186 |
AOCI Balance | -128 | -4 | -116 |
Pension and OPEB plan adjustments | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
AOCI Balance | -197 | -287 | -236 |
Other comprehensive income/(loss) before reclassifications | -102 | 67 | -73 |
Amounts reclassified from Accumulated Other Comprehensive Loss | 18 | 23 | 22 |
Net current period other comprehensive (loss)/income | -84 | 90 | -51 |
AOCI Balance | -281 | -197 | -287 |
Equity Investments | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
AOCI Balance | -104 | -338 | -268 |
Other comprehensive income/(loss) before reclassifications | -206 | 219 | -67 |
Amounts reclassified from Accumulated Other Comprehensive Loss | 2 | 15 | -3 |
Net current period other comprehensive (loss)/income | -204 | 234 | -70 |
AOCI Balance | -308 | -104 | -338 |
OTHER_COMPREHENSIVE_INCOME_AND4
OTHER COMPREHENSIVE INCOME AND ACCUMULATED OTHER COMPREHENSIVE LOSS (Details 3) (CAD) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Revenue (Energy) | 3,725 | 3,176 | 2,704 |
Interest Expense | -1,198 | -985 | -976 |
Income/(Loss) from Equity Investments | 522 | 597 | 257 |
Income before Income Taxes | 2,824 | 2,522 | 1,938 |
Income Tax Expense | -831 | -611 | -466 |
Net Income Attributable to Controlling Interests | 1,840 | 1,786 | 1,354 |
Cash flow hedges | Amounts reclassified from accumulated other comprehensive loss | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Income before Income Taxes | 95 | -60 | 219 |
Income Tax Expense | -40 | 19 | -81 |
Net Income Attributable to Controlling Interests | 55 | -41 | 138 |
Cash flow hedges | Power and Natural Gas | Amounts reclassified from accumulated other comprehensive loss | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Revenue (Energy) | 111 | -44 | 201 |
Cash flow hedges | Interest | Amounts reclassified from accumulated other comprehensive loss | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Interest Expense | -16 | -16 | 18 |
Pension and other post-retirement plan adjustments | Amounts reclassified from accumulated other comprehensive loss | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Amortization of actuarial loss and past service cost | -25 | -34 | -22 |
Income before Income Taxes | 7 | 11 | 0 |
Net Income Attributable to Controlling Interests | -18 | -23 | -22 |
Equity Investments | Amounts reclassified from accumulated other comprehensive loss | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Income/(Loss) from Equity Investments | -2 | -20 | 5 |
Income Tax Expense | 0 | 5 | -2 |
Net Income Attributable to Controlling Interests | -2 | -15 | 3 |
EMPLOYEE_POSTRETIREMENT_BENEFI2
EMPLOYEE POST-RETIREMENT BENEFITS (Details) (CAD) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Employee post-retirement benefits | |||
Expected average remaining life expectancy of former employees over which past service costs are amortized | 12 years | 11 years | 12 years |
Expense for savings plan and DC Plans | 37 | 29 | 24 |
Cash Payments for Employee Post-Retirement Benefits [Abstract] | |||
Cash payments for employee post-retirement benefits, Savings and DC Plans | 37 | 29 | 24 |
Cash payments for employee post-retirement benefits | 116 | 114 | 114 |
Change in Plan Assets | |||
Plan assets at fair value b beginning of year | 2,187 | ||
Plan assets at fair value b end of year | 2,437 | 2,187 | |
Amounts recognized in the Balance Sheet | |||
Intangible and Other Assets (Note 11) | 14 | 16 | |
Other Long-Term Liabilities (Note 14) | -444 | -244 | |
Pension Benefit Plans | |||
Employee post-retirement benefits | |||
Consecutive period of employment for highest average earnings | 3 years | ||
Expected average remaining service life of employees over which past service costs are amortized | 9 years | 9 years | 9 years |
Cash Payments for Employee Post-Retirement Benefits [Abstract] | |||
Cash payments for employee post-retirement benefits, DB Plans and Other | 73 | 79 | 83 |
Change in Benefit Obligation | |||
Benefit obligation b beginning of year | 2,224 | 2,142 | |
Service cost | 85 | 84 | 66 |
Interest cost | 113 | 96 | 94 |
Employee contributions | 4 | 4 | |
Benefits paid | -102 | -83 | |
Actuarial loss/(gain) | 302 | -39 | |
Foreign exchange rate changes | 32 | 20 | |
Benefit obligation b end of year | 2,658 | 2,224 | 2,142 |
Change in Plan Assets | |||
Plan assets at fair value b beginning of year | 2,152 | 1,825 | |
Actual return on plan assets | 246 | 313 | |
Employer contributions | 73 | 79 | 83 |
Employee contributions | 4 | 4 | |
Benefits paid | -102 | -83 | |
Foreign exchange rate changes | 25 | 14 | |
Plan assets at fair value b end of year | 2,398 | 2,152 | 1,825 |
Funded Status b Plan Deficit | -260 | -72 | |
Amounts recognized in the Balance Sheet | |||
Intangible and Other Assets (Note 11) | 0 | 0 | |
Accounts Payable and Other (Note 13) | 0 | 0 | |
Other Long-Term Liabilities (Note 14) | -260 | -72 | |
Net | -260 | -72 | |
Pension Benefit Plans | Canada | |||
Cash Payments for Employee Post-Retirement Benefits [Abstract] | |||
Letter of credit to the DB Plan | 47 | 59 | 48 |
Total amount outstanding under letters of credit | 181 | 134 | |
Other Post-Retirement Benefit Plans | |||
Cash Payments for Employee Post-Retirement Benefits [Abstract] | |||
Cash payments for employee post-retirement benefits, DB Plans and Other | 6 | 6 | 7 |
Change in Benefit Obligation | |||
Benefit obligation b beginning of year | 191 | 186 | |
Service cost | 2 | 2 | 2 |
Interest cost | 10 | 7 | 8 |
Employee contributions | 0 | 0 | |
Benefits paid | -7 | -7 | |
Actuarial loss/(gain) | 14 | -2 | |
Foreign exchange rate changes | 6 | 5 | |
Benefit obligation b end of year | 216 | 191 | 186 |
Change in Plan Assets | |||
Plan assets at fair value b beginning of year | 35 | 32 | |
Actual return on plan assets | 2 | 2 | |
Employer contributions | 6 | 6 | 7 |
Employee contributions | 0 | 0 | |
Benefits paid | -7 | -7 | |
Foreign exchange rate changes | 3 | 2 | |
Plan assets at fair value b end of year | 39 | 35 | 32 |
Funded Status b Plan Deficit | -177 | -156 | |
Amounts recognized in the Balance Sheet | |||
Intangible and Other Assets (Note 11) | 14 | 16 | |
Accounts Payable and Other (Note 13) | -7 | 0 | |
Other Long-Term Liabilities (Note 14) | -184 | -172 | |
Net | -177 | -156 |
EMPLOYEE_POSTRETIREMENT_BENEFI3
EMPLOYEE POST-RETIREMENT BENEFITS (Details 2) (CAD) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Funded status based on accumulated benefit obligation | |||
Plan assets at fair value | 2,437 | 2,187 | |
Pension plans' weighted average asset allocations and target allocations by asset category | |||
Percentage of Plan Assets | 100.00% | 100.00% | |
Pension Benefit Plans | |||
Benefit obligation and fair value of plan assets for plans that are not fully funded | |||
Projected benefit obligation | -2,658 | -2,224 | |
Plan assets at fair value | 2,398 | 2,152 | |
Funded Status b Deficit | -260 | -72 | |
Accumulated benefit obligation | 2,437 | 2,039 | |
Funded status based on accumulated benefit obligation | |||
Accumulated benefit obligation | -2,437 | -2,039 | |
Plan assets at fair value | 2,398 | 2,152 | 1,825 |
Funded Status b (Deficit)/Surplus | -39 | 113 | |
Accumulated benefit obligation and fair value of plan assets for plans that are not fully funded | |||
Accumulated benefit obligation | -715 | -569 | |
Plan assets at fair value | 597 | 537 | |
Funded Status b Deficit | -118 | -32 | |
Pension plans' weighted average asset allocations and target allocations by asset category | |||
Percentage of Plan Assets | 100.00% | 100.00% | |
Expected average remaining service life of employees over which past service costs are amortized | 9 years | 9 years | 9 years |
Pension Benefit Plans | Debt securities | |||
Pension plans' weighted average asset allocations and target allocations by asset category | |||
Percentage of Plan Assets | 31.00% | 31.00% | |
Amount of the Company's debt or the Company's common shares included in plan assets | 1 | 2 | |
Percentage of Plan Assets | 0.10% | 0.10% | |
Pension Benefit Plans | Debt securities | Minimum | |||
Pension plans' weighted average asset allocations and target allocations by asset category | |||
Target Allocations (as a percent) | 25.00% | ||
Pension Benefit Plans | Debt securities | Maximum | |||
Pension plans' weighted average asset allocations and target allocations by asset category | |||
Target Allocations (as a percent) | 35.00% | ||
Pension Benefit Plans | Equity securities | |||
Pension plans' weighted average asset allocations and target allocations by asset category | |||
Percentage of Plan Assets | 69.00% | 69.00% | |
Amount of the Company's debt or the Company's common shares included in plan assets | 1 | 2 | |
Percentage of Plan Assets | 0.10% | 0.10% | |
Pension Benefit Plans | Equity securities | Minimum | |||
Pension plans' weighted average asset allocations and target allocations by asset category | |||
Target Allocations (as a percent) | 50.00% | ||
Pension Benefit Plans | Equity securities | Maximum | |||
Pension plans' weighted average asset allocations and target allocations by asset category | |||
Target Allocations (as a percent) | 70.00% | ||
Pension Benefit Plans | Alternatives | |||
Pension plans' weighted average asset allocations and target allocations by asset category | |||
Percentage of Plan Assets | 0.00% | 0.00% | |
Pension Benefit Plans | Alternatives | Minimum | |||
Pension plans' weighted average asset allocations and target allocations by asset category | |||
Target Allocations (as a percent) | 5.00% | ||
Pension Benefit Plans | Alternatives | Maximum | |||
Pension plans' weighted average asset allocations and target allocations by asset category | |||
Target Allocations (as a percent) | 15.00% | ||
Other Post-Retirement Benefit Plans | |||
Benefit obligation and fair value of plan assets for plans that are not fully funded | |||
Projected benefit obligation | -191 | -172 | |
Plan assets at fair value | 0 | 0 | |
Funded Status b Deficit | -191 | -172 | |
Funded status based on accumulated benefit obligation | |||
Plan assets at fair value | 39 | 35 | 32 |
EMPLOYEE_POSTRETIREMENT_BENEFI4
EMPLOYEE POST-RETIREMENT BENEFITS (Details 3) (CAD) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | |||
Employee post-retirement benefits | |||
Fair value of plan assets | 2,437 | 2,187 | |
Percentage of Total Portfolio | 100.00% | 100.00% | |
Quoted Prices in Active Markets (Level I) | |||
Employee post-retirement benefits | |||
Fair value of plan assets | 1,239 | 1,064 | |
Significant Other Observable Inputs (Level II) | |||
Employee post-retirement benefits | |||
Fair value of plan assets | 1,185 | 1,105 | |
Significant Unobservable Inputs (Level III) | |||
Employee post-retirement benefits | |||
Fair value of plan assets | 13 | 18 | |
Cash and cash equivalents | |||
Employee post-retirement benefits | |||
Fair value of plan assets | 20 | 17 | |
Percentage of Total Portfolio | 1.00% | 1.00% | |
Cash and cash equivalents | Quoted Prices in Active Markets (Level I) | |||
Employee post-retirement benefits | |||
Fair value of plan assets | 20 | 17 | |
Cash and cash equivalents | Significant Other Observable Inputs (Level II) | |||
Employee post-retirement benefits | |||
Fair value of plan assets | 0 | 0 | |
Cash and cash equivalents | Significant Unobservable Inputs (Level III) | |||
Employee post-retirement benefits | |||
Fair value of plan assets | 0 | 0 | |
Equity securities | Canada | |||
Employee post-retirement benefits | |||
Fair value of plan assets | 503 | 644 | |
Percentage of Total Portfolio | 21.00% | 29.00% | |
Equity securities | U.S. | |||
Employee post-retirement benefits | |||
Fair value of plan assets | 551 | 460 | |
Percentage of Total Portfolio | 23.00% | 21.00% | |
Equity securities | International | |||
Employee post-retirement benefits | |||
Fair value of plan assets | 365 | 366 | |
Percentage of Total Portfolio | 15.00% | 17.00% | |
Equity securities | Global | |||
Employee post-retirement benefits | |||
Fair value of plan assets | 141 | 14 | |
Percentage of Total Portfolio | 6.00% | 1.00% | |
Equity securities | Emerging | |||
Employee post-retirement benefits | |||
Fair value of plan assets | 87 | 0 | |
Percentage of Total Portfolio | 3.00% | 0.00% | |
Equity securities | Quoted Prices in Active Markets (Level I) | Canada | |||
Employee post-retirement benefits | |||
Fair value of plan assets | 361 | 474 | |
Equity securities | Quoted Prices in Active Markets (Level I) | U.S. | |||
Employee post-retirement benefits | |||
Fair value of plan assets | 516 | 423 | |
Equity securities | Quoted Prices in Active Markets (Level I) | International | |||
Employee post-retirement benefits | |||
Fair value of plan assets | 218 | 36 | |
Equity securities | Quoted Prices in Active Markets (Level I) | Global | |||
Employee post-retirement benefits | |||
Fair value of plan assets | 0 | 0 | |
Equity securities | Quoted Prices in Active Markets (Level I) | Emerging | |||
Employee post-retirement benefits | |||
Fair value of plan assets | 7 | 0 | |
Equity securities | Significant Other Observable Inputs (Level II) | Canada | |||
Employee post-retirement benefits | |||
Fair value of plan assets | 142 | 170 | |
Equity securities | Significant Other Observable Inputs (Level II) | U.S. | |||
Employee post-retirement benefits | |||
Fair value of plan assets | 35 | 37 | |
Equity securities | Significant Other Observable Inputs (Level II) | International | |||
Employee post-retirement benefits | |||
Fair value of plan assets | 147 | 330 | |
Equity securities | Significant Other Observable Inputs (Level II) | Global | |||
Employee post-retirement benefits | |||
Fair value of plan assets | 141 | 14 | |
Equity securities | Significant Other Observable Inputs (Level II) | Emerging | |||
Employee post-retirement benefits | |||
Fair value of plan assets | 80 | 0 | |
Equity securities | Significant Unobservable Inputs (Level III) | Canada | |||
Employee post-retirement benefits | |||
Fair value of plan assets | 0 | 0 | |
Equity securities | Significant Unobservable Inputs (Level III) | U.S. | |||
Employee post-retirement benefits | |||
Fair value of plan assets | 0 | 0 | |
Equity securities | Significant Unobservable Inputs (Level III) | International | |||
Employee post-retirement benefits | |||
Fair value of plan assets | 0 | 0 | |
Equity securities | Significant Unobservable Inputs (Level III) | Global | |||
Employee post-retirement benefits | |||
Fair value of plan assets | 0 | 0 | |
Equity securities | Significant Unobservable Inputs (Level III) | Emerging | |||
Employee post-retirement benefits | |||
Fair value of plan assets | 0 | 0 | |
Federal Bonds | Canada | |||
Employee post-retirement benefits | |||
Fair value of plan assets | 218 | 190 | |
Percentage of Total Portfolio | 9.00% | 9.00% | |
Federal Bonds | Quoted Prices in Active Markets (Level I) | Canada | |||
Employee post-retirement benefits | |||
Fair value of plan assets | 0 | 0 | |
Federal Bonds | Significant Other Observable Inputs (Level II) | Canada | |||
Employee post-retirement benefits | |||
Fair value of plan assets | 218 | 190 | |
Federal Bonds | Significant Unobservable Inputs (Level III) | Canada | |||
Employee post-retirement benefits | |||
Fair value of plan assets | 0 | 0 | |
Provincial Bonds | Canada | |||
Employee post-retirement benefits | |||
Fair value of plan assets | 180 | 154 | |
Percentage of Total Portfolio | 7.00% | 7.00% | |
Provincial Bonds | Quoted Prices in Active Markets (Level I) | Canada | |||
Employee post-retirement benefits | |||
Fair value of plan assets | 0 | 0 | |
Provincial Bonds | Significant Other Observable Inputs (Level II) | Canada | |||
Employee post-retirement benefits | |||
Fair value of plan assets | 180 | 154 | |
Provincial Bonds | Significant Unobservable Inputs (Level III) | Canada | |||
Employee post-retirement benefits | |||
Fair value of plan assets | 0 | 0 | |
Municipal Bonds | Canada | |||
Employee post-retirement benefits | |||
Fair value of plan assets | 7 | 6 | |
Percentage of Total Portfolio | 0.00% | 0.00% | |
Municipal Bonds | Quoted Prices in Active Markets (Level I) | Canada | |||
Employee post-retirement benefits | |||
Fair value of plan assets | 0 | 0 | |
Municipal Bonds | Significant Other Observable Inputs (Level II) | Canada | |||
Employee post-retirement benefits | |||
Fair value of plan assets | 7 | 6 | |
Municipal Bonds | Significant Unobservable Inputs (Level III) | Canada | |||
Employee post-retirement benefits | |||
Fair value of plan assets | 0 | 0 | |
Corporate Bonds | Canada | |||
Employee post-retirement benefits | |||
Fair value of plan assets | 76 | 77 | |
Percentage of Total Portfolio | 3.00% | 3.00% | |
Corporate Bonds | U.S. | |||
Employee post-retirement benefits | |||
Fair value of plan assets | 59 | 48 | |
Percentage of Total Portfolio | 2.00% | 2.00% | |
Corporate Bonds | International | |||
Employee post-retirement benefits | |||
Fair value of plan assets | 14 | 20 | |
Percentage of Total Portfolio | 1.00% | 1.00% | |
Corporate Bonds | Quoted Prices in Active Markets (Level I) | Canada | |||
Employee post-retirement benefits | |||
Fair value of plan assets | 0 | 0 | |
Corporate Bonds | Quoted Prices in Active Markets (Level I) | U.S. | |||
Employee post-retirement benefits | |||
Fair value of plan assets | 0 | 0 | |
Corporate Bonds | Quoted Prices in Active Markets (Level I) | International | |||
Employee post-retirement benefits | |||
Fair value of plan assets | 0 | 0 | |
Corporate Bonds | Significant Other Observable Inputs (Level II) | Canada | |||
Employee post-retirement benefits | |||
Fair value of plan assets | 76 | 77 | |
Corporate Bonds | Significant Other Observable Inputs (Level II) | U.S. | |||
Employee post-retirement benefits | |||
Fair value of plan assets | 59 | 48 | |
Corporate Bonds | Significant Other Observable Inputs (Level II) | International | |||
Employee post-retirement benefits | |||
Fair value of plan assets | 14 | 20 | |
Corporate Bonds | Significant Unobservable Inputs (Level III) | Canada | |||
Employee post-retirement benefits | |||
Fair value of plan assets | 0 | 0 | |
Corporate Bonds | Significant Unobservable Inputs (Level III) | U.S. | |||
Employee post-retirement benefits | |||
Fair value of plan assets | 0 | 0 | |
Corporate Bonds | Significant Unobservable Inputs (Level III) | International | |||
Employee post-retirement benefits | |||
Fair value of plan assets | 0 | 0 | |
State Bonds | U.S. | |||
Employee post-retirement benefits | |||
Fair value of plan assets | 47 | 33 | |
Percentage of Total Portfolio | 2.00% | 2.00% | |
State Bonds | Quoted Prices in Active Markets (Level I) | U.S. | |||
Employee post-retirement benefits | |||
Fair value of plan assets | 0 | 0 | |
State Bonds | Significant Other Observable Inputs (Level II) | U.S. | |||
Employee post-retirement benefits | |||
Fair value of plan assets | 47 | 33 | |
State Bonds | Significant Unobservable Inputs (Level III) | U.S. | |||
Employee post-retirement benefits | |||
Fair value of plan assets | 0 | 0 | |
Mortgage Backed | International | |||
Employee post-retirement benefits | |||
Fair value of plan assets | 39 | 26 | |
Percentage of Total Portfolio | 2.00% | 1.00% | |
Mortgage Backed | Quoted Prices in Active Markets (Level I) | International | |||
Employee post-retirement benefits | |||
Fair value of plan assets | 0 | 0 | |
Mortgage Backed | Significant Other Observable Inputs (Level II) | International | |||
Employee post-retirement benefits | |||
Fair value of plan assets | 39 | 26 | |
Mortgage Backed | Significant Unobservable Inputs (Level III) | International | |||
Employee post-retirement benefits | |||
Fair value of plan assets | 0 | 0 | |
Other Investments: Private Equity Funds | |||
Employee post-retirement benefits | |||
Fair value of plan assets | 13 | 18 | |
Percentage of Total Portfolio | 0.00% | 1.00% | |
Other Investments: Private Equity Funds | Quoted Prices in Active Markets (Level I) | |||
Employee post-retirement benefits | |||
Fair value of plan assets | 0 | 0 | |
Other Investments: Private Equity Funds | Significant Other Observable Inputs (Level II) | |||
Employee post-retirement benefits | |||
Fair value of plan assets | 0 | 0 | |
Other Investments: Private Equity Funds | Significant Unobservable Inputs (Level III) | |||
Employee post-retirement benefits | |||
Fair value of plan assets | 13 | 18 | 19 |
Funds Held on Deposit | |||
Employee post-retirement benefits | |||
Fair value of plan assets | 117 | 114 | |
Percentage of Total Portfolio | 5.00% | 5.00% | |
Funds Held on Deposit | Quoted Prices in Active Markets (Level I) | |||
Employee post-retirement benefits | |||
Fair value of plan assets | 117 | 114 | |
Funds Held on Deposit | Significant Other Observable Inputs (Level II) | |||
Employee post-retirement benefits | |||
Fair value of plan assets | 0 | 0 | |
Funds Held on Deposit | Significant Unobservable Inputs (Level III) | |||
Employee post-retirement benefits | |||
Fair value of plan assets | 0 | 0 |
EMPLOYEE_POSTRETIREMENT_BENEFI5
EMPLOYEE POST-RETIREMENT BENEFITS (Details 4) (CAD) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Net change in the Level III fair value category | ||
Plan assets at fair value b end of year | 2,437 | 2,187 |
Significant Unobservable Inputs (Level III) | ||
Net change in the Level III fair value category | ||
Plan assets at fair value b end of year | 13 | 18 |
Other Investments: Private Equity Funds | ||
Net change in the Level III fair value category | ||
Plan assets at fair value b end of year | 13 | 18 |
Other Investments: Private Equity Funds | Significant Unobservable Inputs (Level III) | ||
Net change in the Level III fair value category | ||
Plan assets at fair value b beginning of year | 18 | 19 |
Purchases and sales | -7 | -4 |
Realized and unrealized gains | 2 | 3 |
Plan assets at fair value b end of year | 13 | 18 |
EMPLOYEE_POSTRETIREMENT_BENEFI6
EMPLOYEE POST-RETIREMENT BENEFITS (Details 5) (CAD) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Other post-retirement benefit plans, Savings Plan and DC Plans | |||
Company's expected funding contributions for other post-retirement benefit plans, Savings Plan and DC Plans | 36 | ||
Health care benefits | |||
Assumed average annual rate of increase in the per capita cost of covered health care benefits for 2013 (as a percent) | 7.50% | ||
Percentage level to which average annual rate was assumed to decrease | 5.00% | ||
Effects of a one per cent change in assumed health care cost trend rates | |||
Effect on total of service and interest cost components, Increase | 1 | ||
Effect on total of service and interest cost components, Decrease | -1 | ||
Effect on post-retirement benefit obligation, Increase | 14 | ||
Effect on post-retirement benefit obligation, Decrease | -12 | ||
Pension Benefit Plans | |||
DB Plans | |||
Company's expected funding contributions | 70 | ||
Estimated future benefit payments, which reflect expected future service | |||
2015 | 102 | ||
2016 | 108 | ||
2017 | 114 | ||
2018 | 120 | ||
2019 | 127 | ||
2020 to 2024 | 728 | ||
Weighted average actuarial assumptions adopted in measuring the benefit obligations | |||
Discount rate | 4.15% | 4.95% | |
Rate of compensation increase | 3.15% | 3.15% | |
Weighted average actuarial assumptions adopted in measuring the net benefit plan costs | |||
Discount rate | 4.95% | 4.35% | 5.05% |
Expected long-term rate of return on plan assets | 6.90% | 6.70% | 6.70% |
Rate of compensation increase | 3.15% | 3.15% | 3.15% |
Net benefit cost | |||
Service cost | 85 | 84 | 66 |
Interest cost | 113 | 96 | 94 |
Expected return on plan assets | -139 | -120 | -113 |
Amortization of actuarial loss | 21 | 30 | 18 |
Amortization of past service cost | 2 | 2 | 2 |
Amortization of regulatory asset | 18 | 30 | 19 |
Amortization of transitional obligation related to regulated business | 0 | 0 | 0 |
Net Benefit Cost Recognized | 100 | 122 | 86 |
Pre-tax amounts recognized in AOCI | |||
Net loss | 354 | 236 | 362 |
Prior service cost | 2 | 3 | 5 |
Total pre-tax amounts recognized in AOCI | 356 | 239 | 367 |
Amount that will be amortized from AOCI into net periodic benefit cost over the next fiscal year | |||
Estimated net loss that will be amortized | 27 | ||
Estimated prior period cost that will be amortized | 2 | ||
Pre-tax amounts recognized in OCI | |||
Amortization of net loss from AOCI to OCI | -21 | -30 | -19 |
Amortization of prior service costs from AOCI to OCI | -2 | -2 | -2 |
Funded status adjustment | 137 | -96 | 99 |
Total pre-tax amounts recognized in OCI | 114 | -128 | 78 |
Pension Benefit Plans | Canada | |||
Other post-retirement benefit plans, Savings Plan and DC Plans | |||
Expected estimated additional letter of credit | 181 | 134 | |
Pension Benefit Plans | Canada | Scenario, Plan | |||
Other post-retirement benefit plans, Savings Plan and DC Plans | |||
Expected estimated additional letter of credit | 35 | ||
Other Post-Retirement Benefit Plans | |||
DB Plans | |||
Company's expected funding contributions | 7 | ||
Estimated future benefit payments, which reflect expected future service | |||
2015 | 8 | ||
2016 | 8 | ||
2017 | 9 | ||
2018 | 9 | ||
2019 | 10 | ||
2020 to 2024 | 51 | ||
Weighted average actuarial assumptions adopted in measuring the benefit obligations | |||
Discount rate | 4.20% | 5.00% | |
Rate of compensation increase | 0.00% | 0.00% | |
Weighted average actuarial assumptions adopted in measuring the net benefit plan costs | |||
Discount rate | 5.00% | 4.35% | 5.10% |
Expected long-term rate of return on plan assets | 4.60% | 4.60% | 6.40% |
Rate of compensation increase | 0.00% | 0.00% | 0.00% |
Net benefit cost | |||
Service cost | 2 | 2 | 2 |
Interest cost | 10 | 7 | 8 |
Expected return on plan assets | -2 | -2 | -2 |
Amortization of actuarial loss | 2 | 2 | 1 |
Amortization of past service cost | 0 | 0 | 1 |
Amortization of regulatory asset | 1 | 1 | 1 |
Amortization of transitional obligation related to regulated business | 2 | 2 | 2 |
Net Benefit Cost Recognized | 15 | 12 | 13 |
Pre-tax amounts recognized in AOCI | |||
Net loss | 40 | 32 | 33 |
Prior service cost | 1 | 1 | 2 |
Total pre-tax amounts recognized in AOCI | 41 | 33 | 35 |
Amount that will be amortized from AOCI into net periodic benefit cost over the next fiscal year | |||
Estimated net loss that will be amortized | 2 | ||
Estimated prior period cost that will be amortized | 0 | ||
Pre-tax amounts recognized in OCI | |||
Amortization of net loss from AOCI to OCI | -2 | -2 | -1 |
Amortization of prior service costs from AOCI to OCI | 0 | 0 | 0 |
Funded status adjustment | 9 | 0 | 5 |
Total pre-tax amounts recognized in OCI | 7 | -2 | 4 |
RISK_MANAGEMENT_AND_FINANCIAL_2
RISK MANAGEMENT AND FINANCIAL INSTRUMENTS (Details) (Designated as a net investment hedge) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | CAD | CAD | US$ denominated | US$ denominated |
USD ($) | USD ($) | |||
Risk management and financial instruments | ||||
Debt carrying value | 17,000 | 14,200 | $14,700 | $13,400 |
Debt fair value | 19,000 | 16,000 | $16,400 | $15,000 |
RISK_MANAGEMENT_AND_FINANCIAL_3
RISK MANAGEMENT AND FINANCIAL INSTRUMENTS (Details 2) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2013 |
In Millions, unless otherwise specified | CAD | CAD | Designated as a net investment hedge | Designated as a net investment hedge | Designated as a net investment hedge | Designated as a net investment hedge | Designated as a net investment hedge | Designated as a net investment hedge | Designated as a net investment hedge | Designated as a net investment hedge | Designated as a net investment hedge | Designated as a net investment hedge | Designated as a net investment hedge | Designated as a net investment hedge |
US$ denominated | US$ denominated | US$ denominated | US$ denominated | Cross-currency swaps | Cross-currency swaps | Cross-currency swaps | Cross-currency swaps | Forward foreign exchange contracts | Forward foreign exchange contracts | Forward foreign exchange contracts | Forward foreign exchange contracts | |||
USD ($) | CAD | USD ($) | CAD | US$ denominated | US$ denominated | US$ denominated | US$ denominated | US$ denominated | US$ denominated | US$ denominated | US$ denominated | |||
CAD | CAD | USD ($) | USD ($) | USD ($) | CAD | USD ($) | CAD | |||||||
Risk management and financial instruments | ||||||||||||||
U.S. dollar foreign exchange forward contracts (maturing 2015) | -1,160 | -612 | -431 | -201 | -28 | -11 | ||||||||
Fair value | -459 | -212 | ||||||||||||
Notional or Principal Amount | 4,300 | 4,650 | 2,900 | 3,800 | 1,400 | 850 | ||||||||
Net realized gains related to the interest component | 21 | 29 |
RISK_MANAGEMENT_AND_FINANCIAL_4
RISK MANAGEMENT AND FINANCIAL INSTRUMENTS (Details 3) (CAD) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Derivatives, Fair Value [Line Items] | ||
Gross derivative instruments presented on the balance sheet | 502 | 507 |
Gross derivative instruments presented on the balance sheet | -1,160 | -612 |
Net Investment Hedging | Cross Currency, InterestRate Contract and Foreign Exchange Forward | ||
Derivatives, Fair Value [Line Items] | ||
Derivative, Fair Value, Net | -459 | -212 |
Net Investment Hedging | Cross Currency, InterestRate Contract and Foreign Exchange Forward | Other Current Assets | ||
Derivatives, Fair Value [Line Items] | ||
Gross derivative instruments presented on the balance sheet | 5 | 5 |
Net Investment Hedging | Cross Currency, InterestRate Contract and Foreign Exchange Forward | Other Noncurrent Assets | ||
Derivatives, Fair Value [Line Items] | ||
Gross derivative instruments presented on the balance sheet | 1 | 0 |
Net Investment Hedging | Cross Currency, InterestRate Contract and Foreign Exchange Forward | Other Current Liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Gross derivative instruments presented on the balance sheet | -155 | -50 |
Net Investment Hedging | Cross Currency, InterestRate Contract and Foreign Exchange Forward | Other Noncurrent Liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Gross derivative instruments presented on the balance sheet | -310 | -167 |
RISK_MANAGEMENT_AND_FINANCIAL_5
RISK MANAGEMENT AND FINANCIAL INSTRUMENTS (Details 4) | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | USD ($) | CAD | USD ($) | CAD | Interest rate swap agreements | Interest rate swap agreements | Interest rate swap agreements | Interest rate swap agreements | Level II | Level II | Level II | Level II |
CAD | CAD | USD ($) | USD ($) | Carrying Amount | Carrying Amount | Fair Value | Fair Value | |||||
CAD | CAD | CAD | CAD | |||||||||
Financial Assets | ||||||||||||
Notes receivable and other | 213 | 226 | 263 | 269 | ||||||||
Available for sale assets | 62 | 47 | 62 | 47 | ||||||||
Financial Liabilities | ||||||||||||
Current and Long-Term Debt | -24,757 | -22,865 | -24,757 | -22,865 | -28,713 | -26,134 | ||||||
Junior subordinated notes | -1,160 | -1,063 | -1,160 | -1,063 | -1,157 | -1,093 | ||||||
Total liabilities | -658 | -105 | -25,642 | -23,655 | -29,545 | -26,911 | ||||||
Long-term Debt | 400 | 200 | ||||||||||
Fair value adjustments (losses) | -3 | -5 | ||||||||||
Long-Term Debt hedged | $400 | $200 |
RISK_MANAGEMENT_AND_FINANCIAL_6
RISK MANAGEMENT AND FINANCIAL INSTRUMENTS (Details 5) (CAD) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Derivatives, Fair Value [Line Items] | ||
Other Current Assets (Note 5) | 409 | 395 |
Intangible and Other Assets (Note 11) | 93 | 112 |
Accounts Payable and Other (Note 13) | -749 | -357 |
Other Long-Term Liabilities (Note 14) | -411 | -255 |
Total liabilities | -658 | -105 |
Derivatives instruments, excluding net investment hedges | Other Current Assets | ||
Derivatives, Fair Value [Line Items] | ||
Other Current Assets (Note 5) | 409 | 395 |
Derivatives instruments, excluding net investment hedges | Intangible and Other Assets | ||
Derivatives, Fair Value [Line Items] | ||
Intangible and Other Assets (Note 11) | 93 | 112 |
Derivatives instruments, excluding net investment hedges | Accounts Payable and Other | ||
Derivatives, Fair Value [Line Items] | ||
Accounts Payable and Other (Note 13) | -749 | -357 |
Derivatives instruments, excluding net investment hedges | Other Long-Term Liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Other Long-Term Liabilities (Note 14) | -411 | -255 |
RISK_MANAGEMENT_AND_FINANCIAL_7
RISK MANAGEMENT AND FINANCIAL INSTRUMENTS (Details 6) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | CAD | CAD | Commodity contract | Commodity contract | Commodity contract | Commodity contract | Foreign Exchange | Foreign Exchange | Interest | Interest | Derivative Financial Instruments Held for Trading | Derivative Financial Instruments Held for Trading | Derivative Financial Instruments Held for Trading | Derivative Financial Instruments Held for Trading | Derivative Financial Instruments Held for Trading | Derivative Financial Instruments Held for Trading | Derivative Financial Instruments Held for Trading | Derivative Financial Instruments Held for Trading | Derivative Financial Instruments Held for Trading | Derivative Financial Instruments Held for Trading | Derivative Financial Instruments Held for Trading | Derivative Financial Instruments Held for Trading | Derivative Financial Instruments Held for Trading | Derivative Financial Instruments Held for Trading | Derivative Financial Instruments Held for Trading | Derivative Financial Instruments Held for Trading | Derivative Financial Instruments Held for Trading | Derivative Financial Instruments Held for Trading | Derivative Financial Instruments Held for Trading | Derivative Financial Instruments Held for Trading | Derivative Financial Instruments Held for Trading | Derivative Financial Instruments in Hedging Relationships | Derivative Financial Instruments in Hedging Relationships | Derivative Financial Instruments in Hedging Relationships | Derivative Financial Instruments in Hedging Relationships | Derivative Financial Instruments in Hedging Relationships | Derivative Financial Instruments in Hedging Relationships | Derivative Financial Instruments in Hedging Relationships | Derivative Financial Instruments in Hedging Relationships | Derivative Financial Instruments in Hedging Relationships | Derivative Financial Instruments in Hedging Relationships | Derivative Financial Instruments in Hedging Relationships | Derivative Financial Instruments in Hedging Relationships | Derivative Financial Instruments in Hedging Relationships | Derivative Financial Instruments in Hedging Relationships | Derivative Financial Instruments in Hedging Relationships | Derivative Financial Instruments in Hedging Relationships | Derivative Financial Instruments in Hedging Relationships | Derivative Financial Instruments in Hedging Relationships | Derivative Financial Instruments in Hedging Relationships | Derivative Financial Instruments in Hedging Relationships |
Power | Power | Gas | Gas | CAD | CAD | CAD | CAD | Commodity contract | Commodity contract | Commodity contract | Commodity contract | Commodity contract | Commodity contract | Commodity contract | Commodity contract | Commodity contract | Commodity contract | Commodity contract | Commodity contract | Foreign Exchange | Foreign Exchange | Foreign Exchange | Foreign Exchange | Interest | Interest | Interest | Interest | Interest | Commodity contract | Commodity contract | Commodity contract | Commodity contract | Commodity contract | Commodity contract | Commodity contract | Commodity contract | Foreign Exchange | Foreign Exchange | Foreign Exchange | Foreign Exchange | Interest | Interest | Fair value hedges | Fair value hedges | Fair value hedges | Fair value hedges | Fair value hedges | Fair value hedges | |||
CAD | CAD | CAD | CAD | Power | Power | Power | Power | Power | Power | Gas | Gas | Gas | Gas | Gas | Gas | CAD | CAD | U.S. dollars | U.S. dollars | CAD | CAD | Canadian dollars | U.S. dollars | U.S. dollars | Power | Power | Power | Power | Power | Power | Gas | Gas | CAD | CAD | U.S. dollars | U.S. dollars | U.S. dollars | U.S. dollars | Interest | Interest | Interest | Interest | Interest | Interest | |||||||
CAD | CAD | Purchases | Purchases | Sales | Sales | CAD | CAD | Purchases | Purchases | Sales | Sales | USD ($) | USD ($) | CAD | USD ($) | USD ($) | CAD | CAD | Purchases | Purchases | Sales | Sales | CAD | CAD | USD ($) | USD ($) | USD ($) | USD ($) | CAD | CAD | USD ($) | USD ($) | Interest expense | Interest expense | |||||||||||||||||
GW | GW | GW | GW | Bcf | Bcf | Bcf | Bcf | MWh | MWh | MWh | MWh | CAD | CAD | ||||||||||||||||||||||||||||||||||||||
Fair Values | |||||||||||||||||||||||||||||||||||||||||||||||||||
Assets | 502 | 507 | 419 | 415 | 69 | 73 | 7 | 5 | 7 | 14 | 362 | 265 | 69 | 73 | 1 | 0 | 4 | 8 | 57 | 150 | 3 | 6 | |||||||||||||||||||||||||||||
Liabilities | -1,160 | -612 | -554 | -302 | -103 | -72 | -497 | -230 | -6 | -8 | -391 | -280 | -103 | -72 | -32 | -12 | -4 | -7 | -163 | -22 | 0 | 0 | 0 | -1 | -2 | -1 | |||||||||||||||||||||||||
Notional Values | |||||||||||||||||||||||||||||||||||||||||||||||||||
Volumes | 42,097,000 | 29,301,000 | 35,452,000 | 28,534,000 | 60,000 | 88,000 | 38,000 | 60,000 | 11,120,000 | 9,758,000 | 3,977,000 | 6,906,000 | |||||||||||||||||||||||||||||||||||||||
Net gains and losses | |||||||||||||||||||||||||||||||||||||||||||||||||||
Net unrealized (losses)/gains in the year | -5 | 19 | -35 | 17 | -20 | -10 | |||||||||||||||||||||||||||||||||||||||||||||
Net realized (losses)/gains in the year | -39 | -49 | 11 | -13 | -28 | -9 | |||||||||||||||||||||||||||||||||||||||||||||
Net realized (losses)/gains in the year | 130 | -19 | 0 | -2 | 4 | 5 | 7 | 6 | |||||||||||||||||||||||||||||||||||||||||||
Fair value | 3 | 5 | |||||||||||||||||||||||||||||||||||||||||||||||||
Notional value | $1,374 | $1,015 | 400 | $100 | $100 | Â Â | $16 | $550 | $350 | $400 | $200 |
RISK_MANAGEMENT_AND_FINANCIAL_8
RISK MANAGEMENT AND FINANCIAL INSTRUMENTS (Details 7) (CAD) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Components of OCI related to derivatives | ||
Change in fair value of derivative instruments recognized in OCI (effective portion) | -118 | 121 |
Cash Flow Hedges | ||
Components of OCI related to derivatives | ||
Reclassification of (losses)/gains on derivative instruments from AOCI to Net Income (effective portion) | -95 | 60 |
(Losses)/gains on derivative instruments recognized in Net Income (ineffective portion) | -13 | 8 |
Cash Flow Hedges | Commodity contract | Power | ||
Components of OCI related to derivatives | ||
Change in fair value of derivative instruments recognized in OCI (effective portion) | -126 | 117 |
Reclassification of (losses)/gains on derivative instruments from AOCI to Net Income (effective portion) | -114 | 40 |
(Losses)/gains on derivative instruments recognized in Net Income (ineffective portion) | -13 | 8 |
Cash Flow Hedges | Commodity contract | Gas | ||
Components of OCI related to derivatives | ||
Change in fair value of derivative instruments recognized in OCI (effective portion) | -2 | -1 |
Reclassification of (losses)/gains on derivative instruments from AOCI to Net Income (effective portion) | 3 | 4 |
Cash Flow Hedges | Foreign Exchange | ||
Components of OCI related to derivatives | ||
Change in fair value of derivative instruments recognized in OCI (effective portion) | 10 | 5 |
Cash Flow Hedges | Interest | ||
Components of OCI related to derivatives | ||
Reclassification of (losses)/gains on derivative instruments from AOCI to Net Income (effective portion) | 16 | 16 |
RISK_MANAGEMENT_AND_FINANCIAL_9
RISK MANAGEMENT AND FINANCIAL INSTRUMENTS (Details 8) (CAD) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Derivative - Asset | ||
Gross derivative instruments presented on the balance sheet | 502 | 507 |
Amounts available for offset | -395 | -345 |
Net amounts | 107 | 162 |
Derivative - Liability | ||
Gross derivative instruments presented on the balance sheet | -1,160 | -612 |
Amounts available for offset | 395 | 345 |
Net amounts | -765 | -267 |
Cash collateral provided by the Company | 459 | 67 |
Letters of credit provided by the Company | 26 | 85 |
Cash collateral received by the Company | 1 | 11 |
Letters of credit received by the Company | 1 | 32 |
Credit Risk Related Contingent Features | ||
Aggregate fair value of derivative instruments in a net liability position | 15 | 16 |
Additional collateral required if credit-risk-related contingent features were triggered | 15 | 16 |
Foreign Exchange | ||
Derivative - Asset | ||
Gross derivative instruments presented on the balance sheet | 7 | 5 |
Amounts available for offset | -7 | -5 |
Net amounts | 0 | 0 |
Derivative - Liability | ||
Gross derivative instruments presented on the balance sheet | -497 | -230 |
Amounts available for offset | 7 | 5 |
Net amounts | -490 | -225 |
Interest | ||
Derivative - Asset | ||
Gross derivative instruments presented on the balance sheet | 7 | 14 |
Amounts available for offset | -1 | -2 |
Net amounts | 6 | 12 |
Derivative - Liability | ||
Gross derivative instruments presented on the balance sheet | -6 | -8 |
Amounts available for offset | 1 | 2 |
Net amounts | -5 | -6 |
Power | Commodity contract | ||
Derivative - Asset | ||
Gross derivative instruments presented on the balance sheet | 419 | 415 |
Amounts available for offset | -330 | -277 |
Net amounts | 89 | 138 |
Derivative - Liability | ||
Gross derivative instruments presented on the balance sheet | -554 | -302 |
Amounts available for offset | 330 | 277 |
Net amounts | -224 | -25 |
Gas | Commodity contract | ||
Derivative - Asset | ||
Gross derivative instruments presented on the balance sheet | 69 | 73 |
Amounts available for offset | -57 | -61 |
Net amounts | 12 | 12 |
Derivative - Liability | ||
Gross derivative instruments presented on the balance sheet | -103 | -72 |
Amounts available for offset | 57 | 61 |
Net amounts | -46 | -11 |
Recovered_Sheet1
RISK MANAGEMENT AND FINANCIAL INSTRUMENTS (Details 9) (CAD) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Fair Value Hierarchy | ||
Assets | 502 | 507 |
Liabilities | -1,160 | -612 |
Commodity contract | Power | ||
Fair Value Hierarchy | ||
Assets | 419 | 415 |
Liabilities | -554 | -302 |
Commodity contract | Gas | ||
Fair Value Hierarchy | ||
Assets | 69 | 73 |
Liabilities | -103 | -72 |
Foreign exchange contracts | ||
Fair Value Hierarchy | ||
Assets | 7 | 5 |
Liabilities | -497 | -230 |
Interest rate contracts | ||
Fair Value Hierarchy | ||
Assets | 7 | 14 |
Liabilities | -6 | -8 |
Recurring basis | ||
Fair Value Hierarchy | ||
Non-Derivative Financial Instruments: Available-for-sale assets | 62 | 47 |
Assets and liabilities, net | -596 | -58 |
Recurring basis | Commodity contract | Power | ||
Fair Value Hierarchy | ||
Assets | 419 | 415 |
Liabilities | -554 | -302 |
Recurring basis | Commodity contract | Gas | ||
Fair Value Hierarchy | ||
Assets | 69 | 73 |
Liabilities | -103 | -72 |
Recurring basis | Foreign exchange contracts | ||
Fair Value Hierarchy | ||
Assets | 7 | 5 |
Liabilities | -497 | -230 |
Recurring basis | Interest rate contracts | ||
Fair Value Hierarchy | ||
Assets | 7 | 14 |
Liabilities | -6 | -8 |
Recurring basis | Quoted Prices in Active Markets (Level I) | ||
Fair Value Hierarchy | ||
Non-Derivative Financial Instruments: Available-for-sale assets | 0 | 0 |
Assets and liabilities, net | -46 | -2 |
Recurring basis | Quoted Prices in Active Markets (Level I) | Commodity contract | Gas | ||
Fair Value Hierarchy | ||
Assets | 40 | 48 |
Liabilities | -86 | -50 |
Recurring basis | Significant Other Observable Inputs (Level II) | ||
Fair Value Hierarchy | ||
Non-Derivative Financial Instruments: Available-for-sale assets | 62 | 47 |
Assets and liabilities, net | -554 | -57 |
Recurring basis | Significant Other Observable Inputs (Level II) | Commodity contract | Power | ||
Fair Value Hierarchy | ||
Assets | 417 | 411 |
Liabilities | -551 | -299 |
Recurring basis | Significant Other Observable Inputs (Level II) | Commodity contract | Gas | ||
Fair Value Hierarchy | ||
Assets | 24 | 25 |
Liabilities | -17 | -22 |
Recurring basis | Significant Other Observable Inputs (Level II) | Foreign exchange contracts | ||
Fair Value Hierarchy | ||
Assets | 7 | 5 |
Liabilities | -497 | -230 |
Recurring basis | Significant Other Observable Inputs (Level II) | Interest rate contracts | ||
Fair Value Hierarchy | ||
Assets | 7 | 14 |
Liabilities | -6 | -8 |
Recurring basis | Significant Unobservable Inputs (Level III) | ||
Fair Value Hierarchy | ||
Assets and liabilities, net | 4 | 1 |
Recurring basis | Significant Unobservable Inputs (Level III) | Commodity contract | Power | ||
Fair Value Hierarchy | ||
Assets | 2 | 4 |
Liabilities | -3 | -3 |
Recurring basis | Significant Unobservable Inputs (Level III) | Commodity contract | Gas | ||
Fair Value Hierarchy | ||
Assets | 5 |
Recovered_Sheet2
RISK MANAGEMENT AND FINANCIAL INSTRUMENTS (Details 10) (CAD) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Net change in the Level III fair value category | ||
Decrease or increase in the fair value of outstanding derivative financial instruments included in Level III | 1,000,000 | |
Commodity contract | Power | ||
Net change in the Level III fair value category | ||
Balance at beginning of year | 1,000,000 | -2,000,000 |
Transfers out of Level III | 0 | -2,000,000 |
Total gains/(losses) included in Net Income | 3,000,000 | -1,000,000 |
Total gains included in OCI | 0 | 6,000,000 |
Balance at end of year | 4,000,000 | 1,000,000 |
Commodity contract | Power | Level III | ||
Net change in the Level III fair value category | ||
Derivative Financial Instruments Specified Percentage of Increase (Decrease) in Commodity Prices Resulting in Change in Fair Value | 10.00% | |
Energy Revenue | ||
Net change in the Level III fair value category | ||
Fair Value, Liabilities Measured on Recurring Basis, Change in Unrealized Gain (Loss) | 3,000,000 | 0 |
Recovered_Sheet3
RISK MANAGEMENT AND FINANCIAL INSTRUMENTS (Counterparty Credit Risk) (Details) | 12 Months Ended | |||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2013 |
USD ($) | CAD | USD ($) | CAD | |
Risk Management and Financial Instruments [Abstract] | ||||
Concentration Risk, Credit Risk, Financial Instrument, Maximum Exposure | $222 | 258 | $225 | 240 |
CHANGES_IN_OPERATING_WORKING_C2
CHANGES IN OPERATING WORKING CAPITAL (Details) (CAD) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
CHANGES IN OPERATING WORKING CAPITAL | |||
(Increase)/decrease in Accounts Receivable | -189 | -54 | 67 |
(Increase)/decrease in Inventories | -28 | -30 | 27 |
(Increase)/decrease in Other Current Assets | -385 | 40 | 66 |
Increase/(decrease) in Accounts Payable and Other | 377 | -290 | 127 |
Increase in Accrued Interest | 36 | 8 | 0 |
(Increase)/Decrease in Operating Working Capital | -189 | -326 | 287 |
ACQUISITIONS_AND_DISPOSITIONS_
ACQUISITIONS AND DISPOSITIONS (Details) | 12 Months Ended | 0 Months Ended | 1 Months Ended | 3 Months Ended | 4 Months Ended | 12 Months Ended | 24 Months Ended | 1 Months Ended | 1 Months Ended | 0 Months Ended | |||||||||||||||
In Millions, except Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Oct. 01, 2014 | Jul. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2014 | Sep. 30, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2012 | Dec. 31, 2013 | Jul. 31, 2013 | Jul. 31, 2013 | 31-May-13 | 31-May-13 | Dec. 31, 2014 | Dec. 31, 2013 | Apr. 30, 2013 | Dec. 31, 2012 | Apr. 15, 2014 | Nov. 26, 2014 | Nov. 26, 2014 |
CAD | CAD | CAD | Natural Gas | Natural Gas | Ontario solar projects | Ontario solar projects | Ontario solar projects | Ontario solar projects | Ontario solar projects | Ontario solar projects | Ontario solar projects | CrossAlta | CrossAlta | Bison LLC | Gas Transmission Northwest LLC | TC PipeLines, LP | TC PipeLines, LP | TC PipeLines, LP | TC PipeLines, LP | TC PipeLines, LP | TC PipeLines, LP | Cancarb Limited | Gas Pacifico and INNERGY | Gas Pacifico and INNERGY | |
Bison LLC | GTN LLC and Bison LLC | Energy | Energy | Energy | Energy | Energy | Energy | Energy | Energy | Energy | Natural Gas | Natural Gas | USD ($) | CAD | Disposal Group, Not Discontinued Operations | Disposal Group, Not Discontinued Operations | Disposal Group, Not Discontinued Operations | ||||||||
USD ($) | USD ($) | facility | CAD | CAD | facility | CAD | CAD | facility | CAD | CAD | CAD | ||||||||||||||
facility | |||||||||||||||||||||||||
ACQUISITIONS AND DISPOSITIONS | |||||||||||||||||||||||||
Number of facilities acquired | 3 | 4 | 4 | 8 | |||||||||||||||||||||
Amount for which interest is acquired in cash, net of cash acquired | 241 | 216 | 214 | 60 | 181 | 457 | 216 | 214 | |||||||||||||||||
Proceeds from sale of assets, net of transaction costs (Note 25) | 196 | 0 | 0 | 190 | 9 | ||||||||||||||||||||
Business Acquisition, Percentage of Voting Interests Acquired | 40.00% | ||||||||||||||||||||||||
Ownership interest after acquisition (as a percent) | 100.00% | ||||||||||||||||||||||||
Ownership interest prior to acquisition (as a percent) | 60.00% | ||||||||||||||||||||||||
Sale of Stock, Percentage of Ownership before Transaction | 30.00% | 45.00% | 45.00% | ||||||||||||||||||||||
Proceeds from Sale of Equity Method Investments | 215 | 1,050 | |||||||||||||||||||||||
Long-term debt included in aggregate purchase price | 146 | ||||||||||||||||||||||||
Percentage of acquired long-term debt | 45.00% | ||||||||||||||||||||||||
Number of common units sold in an underwritten public offering (in shares) | 8,855,000 | 8,855,000 | |||||||||||||||||||||||
Price per common unit issued (in dollars per unit) | $43.85 | ||||||||||||||||||||||||
Partners' Capital Account, Public Sale of Units | 388 | ||||||||||||||||||||||||
Net proceeds from issuance of common units | 373 | ||||||||||||||||||||||||
Capital contribution made to maintain general partnership interest | 8 | ||||||||||||||||||||||||
General partnership interest (as a percent) | 2.00% | 2.00% | |||||||||||||||||||||||
Ownership interest in subsidiary (as a percent) | 28.90% | 28.90% | 28.30% | 28.90% | 33.30% | 33.30% | |||||||||||||||||||
After-tax dilution gain recorded in additional paid-in capital | 29 | ||||||||||||||||||||||||
Pre-tax dilution gain recorded in additional paid-in capital as a result of decrease in ownership interest | 47 | ||||||||||||||||||||||||
Ownership interest (as a percent) | 30.00% | ||||||||||||||||||||||||
Proceeds from sale of assets | 117 | 0 | 0 | 9 | |||||||||||||||||||||
Proceeds from Disposition of Assets, Net Proceeds | 8 |
COMMITMENTS_CONTINGENCIES_AND_2
COMMITMENTS, CONTINGENCIES AND GUARANTEES (Details) (CAD) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Minimum Lease Payments | |||
2015 | 348 | ||
2016 | 335 | ||
2017 | 335 | ||
2018 | 250 | ||
2019 | 232 | ||
2020 and thereafter | 407 | ||
Minimum Lease Payments | 1,907 | ||
Amounts Recoverable under Sub-leases | |||
2015 | 48 | ||
2016 | 47 | ||
2017 | 48 | ||
2018 | 27 | ||
2019 | 23 | ||
2020 and thereafter | 20 | ||
Amounts Recoverable under Sub-leases | 213 | ||
Net Payments | |||
2015 | 300 | ||
2016 | 288 | ||
2017 | 287 | ||
2018 | 223 | ||
2019 | 209 | ||
2020 and thereafter | 387 | ||
Net Payments | 1,694 | ||
Rent Expense | |||
Operating leases optional renewable terms, low end of range | 1 year | ||
Operating leases optional renewable terms, high end of range | 5 years | ||
Net rental expense on operating leases | 114 | 98 | 84 |
COMMITMENTS_CONTINGENCIES_AND_3
COMMITMENTS, CONTINGENCIES AND GUARANTEES (Details 2) (CAD) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Alberta PPAs | |||
Commitments under operating leases | |||
Share of payments under PPAs | 391 | 242 | 238 |
Sundance A | |||
Commitments under operating leases | |||
Power generating capacities under PPAs (in Megawatt) | 560 | ||
Sheerness | |||
Commitments under operating leases | |||
Power generating capacities under PPAs (in Megawatt) | 756 |
COMMITMENTS_CONTINGENCIES_AND_4
COMMITMENTS, CONTINGENCIES AND GUARANTEES (Details 3) (CAD) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Contingencies | |||
Amount accrued related to operating facilities for the estimated expenses to remediate the sites | 31,000,000 | 32,000,000 | 37,000,000 |
Natural Gas Pipelines | Capital expenditures | |||
Other Commitments | |||
Commitment for capital expenditures | 900,000,000 | 1,300,000,000 | |
Liquids Pipelines | Capital expenditures | |||
Other Commitments | |||
Commitment for capital expenditures | 1,800,000,000 | 2,500,000,000 | |
Energy | Capital expenditures | |||
Other Commitments | |||
Commitment for capital expenditures | 200,000,000 | 100,000,000 |
COMMITMENTS_CONTINGENCIES_AND_5
COMMITMENTS, CONTINGENCIES AND GUARANTEES (Details 4) (Contingent financial obligation, CAD) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Guarantees | ||
Potential Exposure | 738 | 791 |
Carrying Value | 20 | 18 |
Bruce Power | ||
Guarantees | ||
Potential Exposure | 634 | 740 |
Carrying Value | 6 | 8 |
Bruce A | ||
Guarantees | ||
Percent of guarantee exposure | 50.00% | |
Other | ||
Guarantees | ||
Potential Exposure | 104 | 51 |
Carrying Value | 14 | 10 |
SUBSEQUENT_EVENTS_Details
SUBSEQUENT EVENTS (Details) (TransCanada PipeLines Limited, Subsequent Event, CAD) | 0 Months Ended | |
Jan. 12, 2015 | Jan. 12, 2015 | |
Senior Notes, 1.88%, Due January 12, 2018 | ||
Subsequent Event [Line Items] | ||
Notes offering, amount | 500,000,000 | |
Stated interest rate | 1.88% | 1.88% |
Senior Notes, Floating Rate, Due January 12, 2018 | ||
Subsequent Event [Line Items] | ||
Notes offering, amount | 250,000,000 |