Exhibit 13.2
Consolidated Income
(unaudited) |
| Three months ended June 30 |
| Six months ended June 30 |
| ||||||||
share amounts) |
| 2006 |
| 2005 |
| 2006 |
| 2005 |
| ||||
|
|
|
|
|
|
|
|
|
| ||||
Revenues |
| 1,685 |
| 1,449 |
| 3,579 |
| 2,859 |
| ||||
|
|
|
|
|
|
|
|
|
| ||||
Operating Expenses |
|
|
|
|
|
|
|
|
| ||||
Cost of sales |
| 337 |
| 250 |
| 842 |
| 515 |
| ||||
Other costs and expenses |
| 566 |
| 419 |
| 1,103 |
| 841 |
| ||||
Depreciation |
| 266 |
| 254 |
| 523 |
| 505 |
| ||||
|
| 1,169 |
| 923 |
| 2,468 |
| 1,861 |
| ||||
|
|
|
|
|
|
|
|
|
| ||||
Other Expenses/(Income) |
|
|
|
|
|
|
|
|
| ||||
Financial charges |
| 207 |
| 208 |
| 409 |
| 415 |
| ||||
Financial charges of joint ventures |
| 24 |
| 16 |
| 45 |
| 33 |
| ||||
Equity income |
| (6 | ) | (26 | ) | (24 | ) | (76 | ) | ||||
Interest income and other |
| (15 | ) | (4 | ) | (64 | ) | (28 | ) | ||||
Gain on sale of Northern Border Partners, L.P. interest |
| (23 | ) | — |
| (23 | ) | — |
| ||||
Gain on sale of PipeLines LP units |
| — |
| (2 | ) | — |
| (82 | ) | ||||
|
| 187 |
| 192 |
| 343 |
| 262 |
| ||||
|
|
|
|
|
|
|
|
|
| ||||
Income from Continuing Operations before Income Taxes and Non-Controlling Interests |
| 329 |
| 334 |
| 768 |
| 736 |
| ||||
|
|
|
|
|
|
|
|
|
| ||||
Income Taxes |
|
|
|
|
|
|
|
|
| ||||
Current |
| 37 |
| 79 |
| 247 |
| 240 |
| ||||
Future |
| 37 |
| 38 |
| (4 | ) | 26 |
| ||||
|
| 74 |
| 117 |
| 243 |
| 266 |
| ||||
|
|
|
|
|
|
|
|
|
| ||||
Non-Controlling Interests |
|
|
|
|
|
|
|
|
| ||||
Preferred share dividends of subsidiary |
| 5 |
| 5 |
| 11 |
| 11 |
| ||||
Non-controlling interest in PipeLines LP |
| 8 |
| 12 |
| 21 |
| 21 |
| ||||
Other |
| (2 | ) | — |
| 4 |
| 6 |
| ||||
|
| 11 |
| 17 |
| 36 |
| 38 |
| ||||
|
|
|
|
|
|
|
|
|
| ||||
Net Income from Continuing Operations |
| 244 |
| 200 |
| 489 |
| 432 |
| ||||
Net Income from Discontinued Operations |
| — |
| — |
| 28 |
| — |
| ||||
Net Income |
| 244 |
| 200 |
| 517 |
| 432 |
| ||||
|
|
|
|
|
|
|
|
|
| ||||
Net Income Per Share |
|
|
|
|
|
|
|
|
| ||||
Continuing operations |
| $ | 0.50 |
| $ | 0.41 |
| $ | 1.00 |
| $ | 0.89 |
|
Discontinued operations |
| — |
| — |
| 0.06 |
| — |
| ||||
Basic and Diluted |
| $ | 0.50 |
| $ | 0.41 |
| $ | 1.06 |
| $ | 0.89 |
|
|
|
|
|
|
|
|
|
|
| ||||
Average Shares Outstanding - Basic (millions) |
| 487.7 |
| 485.9 |
| 487.6 |
| 485.6 |
| ||||
|
|
|
|
|
|
|
|
|
| ||||
Average Shares Outstanding - Diluted (millions) |
| 490.1 |
| 488.4 |
| 490.0 |
| 488.1 |
|
See accompanying notes to the consolidated financial statements.
10
Consolidated Cash Flows
(unaudited) |
| Three months ended June 30 |
| Six months ended June 30 |
| ||||
(millions of dollars) |
| 2006 |
| 2005 |
| 2006 |
| 2005 |
|
|
|
|
|
|
|
|
|
|
|
Cash Generated from Operations |
|
|
|
|
|
|
|
|
|
Net income from continuing operations |
| 244 |
| 200 |
| 489 |
| 432 |
|
Depreciation |
| 266 |
| 254 |
| 523 |
| 505 |
|
Gain on sale of PipeLines LP units, net of current income tax |
| — |
| (1 | ) | — |
| (31 | ) |
Gain on sale of Northern Border Partners, L. P. interest, net of current income tax |
| (11 | ) | — |
| (11 | ) | — |
|
Equity income lower than/(in excess of) distributions received |
| (3 | ) | 14 |
| (7 | ) | (17 | ) |
Future income taxes |
| 37 |
| 38 |
| (4 | ) | 26 |
|
Non-controlling interests |
| 11 |
| 17 |
| 36 |
| 38 |
|
Funding of employee future benefits in excess of expense |
| (13 | ) | (10 | ) | (15 | ) | (17 | ) |
Other |
| 8 |
| (14 | ) | 45 |
| (18 | ) |
Funds generated from operations |
| 539 |
| 498 |
| 1,056 |
| 918 |
|
Increase in operating working capital |
| (91 | ) | (177 | ) | (93 | ) | (263 | ) |
Net cash provided by operations |
| 448 |
| 321 |
| 963 |
| 655 |
|
|
|
|
|
|
|
|
|
|
|
Investing Activities |
|
|
|
|
|
|
|
|
|
Capital expenditures |
| (327 | ) | (135 | ) | (630 | ) | (243 | ) |
Acquisitions, net of cash acquired |
| (358 | ) | (632 | ) | (358 | ) | (632 | ) |
Disposition of assets, net of current income tax |
| 23 |
| 1 |
| 23 |
| 102 |
|
Deferred amounts and other |
| (7 | ) | 10 |
| (16 | ) | 50 |
|
Net cash used in investing activities |
| (669 | ) | (756 | ) | (981 | ) | (723 | ) |
|
|
|
|
|
|
|
|
|
|
Financing Activities |
|
|
|
|
|
|
|
|
|
Dividends on common shares |
| (156 | ) | (149 | ) | (305 | ) | (289 | ) |
Distributions paid to non-controlling interests |
| (15 | ) | (23 | ) | (31 | ) | (38 | ) |
Notes payable issued/(repaid), net |
| 180 |
| 289 |
| (453 | ) | 533 |
|
Long-term debt issued |
| 372 |
| 499 |
| 1,250 |
| 799 |
|
Reduction of long-term debt |
| (208 | ) | (623 | ) | (348 | ) | (952 | ) |
Long-term debt of joint ventures issued |
| 22 |
| — |
| 24 |
| 5 |
|
Reduction of long-term debt of joint ventures |
| (15 | ) | (13 | ) | (21 | ) | (17 | ) |
Common shares issued |
| 5 |
| 18 |
| 13 |
| 29 |
|
Net cash provided by/(used in) financing activities |
| 185 |
| (2 | ) | 129 |
| 70 |
|
|
|
|
|
|
|
|
|
|
|
Effect of Foreign Exchange Rate Changes on Cash and Short-Term Investments |
| (11 | ) | 20 |
| (9 | ) | 22 |
|
|
|
|
|
|
|
|
|
|
|
(Decrease)/Increase in Cash and Short-Term Investments |
| (47 | ) | (417 | ) | 102 |
| 24 |
|
|
|
|
|
|
|
|
|
|
|
Cash and Short-Term Investments |
|
|
|
|
|
|
|
|
|
Beginning of period |
| 361 |
| 632 |
| 212 |
| 191 |
|
|
|
|
|
|
|
|
|
|
|
Cash and Short-Term Investments |
|
|
|
|
|
|
|
|
|
End of period |
| 314 |
| 215 |
| 314 |
| 215 |
|
|
|
|
|
|
|
|
|
|
|
Supplementary Cash Flow Information |
|
|
|
|
|
|
|
|
|
Income taxes paid |
| 151 |
| 115 |
| 368 |
| 307 |
|
Interest paid |
| 224 |
| 246 |
| 434 |
| 455 |
|
See accompanying notes to the consolidated financial statements.
11
Consolidated Balance Sheet
|
| June 30, 2006 |
| December 31, |
|
(millions of dollars) |
| (unaudited) |
| 2005 |
|
|
|
|
|
|
|
ASSETS |
|
|
|
|
|
Current Assets |
|
|
|
|
|
Cash and short-term investments |
| 314 |
| 212 |
|
Accounts receivable |
| 741 |
| 796 |
|
Inventories |
| 249 |
| 281 |
|
Other |
| 205 |
| 277 |
|
|
| 1,509 |
| 1,566 |
|
Long-Term Investments |
| 74 |
| 400 |
|
Plant, Property and Equipment |
| 20,778 |
| 20,038 |
|
Other Assets |
| 2,205 |
| 2,109 |
|
|
| 24,566 |
| 24,113 |
|
|
|
|
|
|
|
LIABILITIES AND SHAREHOLDERS’ EQUITY |
|
|
|
|
|
Current Liabilities |
|
|
|
|
|
Notes payable |
| 509 |
| 962 |
|
Accounts payable |
| 1,244 |
| 1,494 |
|
Accrued interest |
| 232 |
| 222 |
|
Current portion of long-term debt |
| 313 |
| 393 |
|
Current portion of long-term debt of joint ventures |
| 136 |
| 41 |
|
|
| 2,434 |
| 3,112 |
|
Deferred Amounts |
| 1,168 |
| 1,196 |
|
Future Income Taxes |
| 691 |
| 703 |
|
Long-Term Debt |
| 10,411 |
| 9,640 |
|
Long-Term Debt of Joint Ventures |
| 1,157 |
| 937 |
|
Preferred Securities |
| 513 |
| 536 |
|
|
| 16,374 |
| 16,124 |
|
Non-Controlling Interest |
|
|
|
|
|
Preferred shares of subsidiary |
| 389 |
| 389 |
|
Non-controlling interest in PipeLines LP |
| 307 |
| 318 |
|
Other |
| 77 |
| 76 |
|
|
| 773 |
| 783 |
|
Shareholders’ Equity |
|
|
|
|
|
Common shares |
| 4,768 |
| 4,755 |
|
Contributed surplus |
| 273 |
| 272 |
|
Retained earnings |
| 2,474 |
| 2,269 |
|
Foreign exchange adjustment |
| (96 | ) | (90 | ) |
|
| 7,419 |
| 7,206 |
|
|
| 24,566 |
| 24,113 |
|
See accompanying notes to the consolidated financial statements.
12
Consolidated Retained Earnings
(unaudited) |
| Six months ended June 30 |
| ||
(millions of dollars) |
| 2006 |
| 2005 |
|
|
|
|
|
|
|
Balance at beginning of period |
| 2,269 |
| 1,655 |
|
Net income |
| 517 |
| 432 |
|
Common share dividends |
| (312 | ) | (297 | ) |
|
| 2,474 |
| 1,790 |
|
See accompanying notes to the consolidated financial statements.
13
Notes to Consolidated Financial Statements
(Unaudited)
1. Significant Accounting Policies
The consolidated financial statements of TransCanada Corporation (TransCanada or the company) have been prepared in accordance with Canadian generally accepted accounting principles (GAAP). The accounting policies applied are consistent with those outlined in TransCanada’s annual audited consolidated financial statements for the year ended December 31, 2005. These consolidated financial statements reflect all normal recurring adjustments that are, in the opinion of management, necessary to present fairly the financial position and results of operations for the respective periods. These consolidated financial statements do not include all disclosures required in the annual financial statements and should be read in conjunction with the 2005 audited consolidated financial statements included in TransCanada’s 2005 Annual Report. Amounts are stated in Canadian dollars unless otherwise indicated. Certain comparative figures have been reclassified to conform with the current period’s presentation.
Since a determination of many assets, liabilities, revenues and expenses is dependent upon future events, the preparation of these consolidated financial statements requires the use of estimates and assumptions. In the opinion of Management, these consolidated financial statements have been properly prepared within reasonable limits of materiality and within the framework of the company’s significant accounting policies.
2. Segmented Information
Effective June 1, 2006, TransCanada revised the composition and names of its reportable business segments to Pipelines and Energy. Pipelines is principally comprised of the company’s pipelines in Canada, the United States and Mexico. Energy includes the company’s power operations, natural gas storage and liquefied natural gas (LNG) businesses in Canada and the U.S. The internal organizational structure of the company has accordingly been aligned with these segments. The segmented information has been retroactively restated to reflect the changes in reportable segments. These changes had no impact on consolidated net income.
14
The impacts on net income of the Pipelines and Energy segments in each quarter of 2005 and first quarter 2006 are as follows.
| 2005 |
| 2006 |
| |||||||||
(millions of dollars) |
| First |
| Second |
| Third |
| Fourth |
| Total |
| First |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pipelines |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income - previously reported as Gas Transmission |
| 211 |
| 165 |
| 148 |
| 160 |
| 684 |
| 168 |
|
Reclassifications: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Natural gas storage |
| (4 | ) | (1 | ) | (2 | ) | (9 | ) | (16 | ) | (13 | ) |
Costs related to LNG |
| 2 |
| 2 |
| 3 |
| 4 |
| 11 |
| 2 |
|
Net Income - revised |
| 209 |
| 166 |
| 149 |
| 155 |
| 679 |
| 157 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Energy |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income - previously reported as Power |
| 30 |
| 42 |
| 292 |
| 197 |
| 561 |
| 89 |
|
Reclassifications: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Natural gas storage |
| 4 |
| 1 |
| 2 |
| 9 |
| 16 |
| 13 |
|
Costs related to LNG |
| (2 | ) | (2 | ) | (3 | ) | (4 | ) | (11 | ) | (2 | ) |
Net Income - revised |
| 32 |
| 41 |
| 291 |
| 202 |
| 566 |
| 100 |
|
Net Income
Three months ended June 30 |
| Pipelines |
| Energy |
| Corporate |
| Total |
| ||||||||
(unaudited - millions of dollars) |
| 2006 |
| 2005 |
| 2006 |
| 2005 |
| 2006 |
| 2005 |
| 2006 |
| 2005 |
|
Revenues |
| 969 |
| 1,008 |
| 716 |
| 441 |
| — |
| — |
| 1,685 |
| 1,449 |
|
Cost of sales |
| — |
| — |
| (337 | ) | (250 | ) | — |
| — |
| (337 | ) | (250 | ) |
Other costs and expenses |
| (326 | ) | (296 | ) | (236 | ) | (122 | ) | (4 | ) | (1 | ) | (566 | ) | (419 | ) |
Depreciation |
| (235 | ) | (233 | ) | (31 | ) | (21 | ) | — |
| — |
| (266 | ) | (254 | ) |
|
| 408 |
| 479 |
| 112 |
| 48 |
| (4 | ) | (1 | ) | 516 |
| 526 |
|
Financial charges and non-controlling interests |
| (184 | ) | (194 | ) | — |
| — |
| (34 | ) | (31 | ) | (218 | ) | (225 | ) |
Financial charges of joint ventures |
| (19 | ) | (13 | ) | (5 | ) | (3 | ) | — |
| — |
| (24 | ) | (16 | ) |
Equity income |
| 6 |
| 13 |
| — |
| 13 |
| — |
| — |
| 6 |
| 26 |
|
Interest income and other |
| 2 |
| (1 | ) | 1 |
| — |
| 12 |
| 5 |
| 15 |
| 4 |
|
Gain on sale of Northern Border Partners, L.P. interest |
| 23 |
| — |
| — |
| — |
| — |
| — |
| 23 |
| — |
|
Gain on sale of PipeLines LP units |
| — |
| 2 |
| — |
| — |
| — |
| — |
| — |
| 2 |
|
Income taxes |
| (89 | ) | (120 | ) | (11 | ) | (17 | ) | 26 |
| 20 |
| (74 | ) | (117 | ) |
Continuing Operations |
| 147 |
| 166 |
| 97 |
| 41 |
| — |
| (7 | ) | 244 |
| 200 |
|
Discontinued Operations |
|
|
|
|
|
|
|
|
|
|
|
|
| — |
| — |
|
Net Income |
|
|
|
|
|
|
|
|
|
|
|
|
| 244 |
| 200 |
|
15
Six months ended June 30 |
| Pipelines |
| Energy |
| Corporate |
| Total |
| ||||||||
(unaudited - millions of dollars) |
| 2006 |
| 2005 |
| 2006 |
| 2005 |
| 2006 |
| 2005 |
| 2006 |
| 2005 |
|
Revenues |
| 1,946 |
| 1,988 |
| 1,633 |
| 871 |
| — |
| — |
| 3,579 |
| 2,859 |
|
Cost of sales |
| — |
| — |
| (842 | ) | (515 | ) | — |
| — |
| (842 | ) | (515 | ) |
Other costs and expenses |
| (643 | ) | (589 | ) | (455 | ) | (249 | ) | (5 | ) | (3 | ) | (1,103 | ) | (841 | ) |
Depreciation |
| (461 | ) | (465 | ) | (62 | ) | (40 | ) | — |
| — |
| (523 | ) | (505 | ) |
|
| 842 |
| 934 |
| 274 |
| 67 |
| (5 | ) | (3 | ) | 1,111 |
| 998 |
|
Financial charges and non-controlling interests |
| (376 | ) | (390 | ) | — |
| (2 | ) | (69 | ) | (61 | ) | (445 | ) | (453 | ) |
Financial charges of joint ventures |
| (33 | ) | (28 | ) | (12 | ) | (5 | ) | — |
| — |
| (45 | ) | (33 | ) |
Equity income |
| 24 |
| 33 |
| — |
| 43 |
| — |
| — |
| 24 |
| 76 |
|
Interest income and other |
| 34 |
| 13 |
| 3 |
| 3 |
| 27 |
| 12 |
| 64 |
| 28 |
|
Gain on sale of Northern Border Partners, L.P. interest |
| 23 |
| — |
| — |
| — |
| — |
| — |
| 23 |
| — |
|
Gain on sale of PipeLines LP units |
| — |
| 82 |
| — |
| — |
| — |
| — |
| — |
| 82 |
|
Income taxes |
| (210 | ) | (269 | ) | (68 | ) | (33 | ) | 35 |
| 36 |
| (243 | ) | (266 | ) |
Continuing Operations |
| 304 |
| 375 |
| 197 |
| 73 |
| (12 | ) | (16 | ) | 489 |
| 432 |
|
Discontinued Operations |
|
|
|
|
|
|
|
|
|
|
|
|
| 28 |
| — |
|
Net Income |
|
|
|
|
|
|
|
|
|
|
|
|
| 517 |
| 432 |
|
Total Assets
|
| June 30, 2006 |
| December 31, |
|
(millions of dollars) |
| (unaudited) |
| 2005 |
|
|
|
|
|
|
|
Pipelines |
| 18,007 |
| 17,857 |
|
Energy |
| 5,422 |
| 5,318 |
|
Corporate |
| 1,137 |
| 938 |
|
|
| 24,566 |
| 24,113 |
|
3. Risk Management and Financial Instruments
The following represents the material changes to the company’s financial instruments since December 31, 2005.
Energy Price Risk Management
The company executes power and natural gas derivatives for overall management of its asset portfolio. The fair value and notional volumes of contracts for differences and the swap, future and option contracts are shown in the tables below.
16
Power
Asset/(Liability)
|
|
|
| June 30, 2006 |
| December 31, |
|
(millions of dollars) |
| Accounting |
| Fair |
| Fair |
|
|
|
|
|
|
|
|
|
Power - swaps and contracts for differences |
|
|
|
|
|
|
|
(maturing 2006 to 2011) |
| Hedge |
| (79 | ) | (130 | ) |
(maturing 2006 to 2010) |
| Non-hedge |
| — |
| 13 |
|
Gas - swaps, futures and options |
|
|
|
|
|
|
|
(maturing 2006 to 2016) |
| Hedge |
| (33 | ) | 17 |
|
(maturing 2006 to 2008) |
| Non-hedge |
| 18 |
| (11 | ) |
|
|
|
|
|
|
|
Notional Volumes |
|
|
| Power (GWh) |
| Gas (Bcf) |
| ||||
June 30, 2006 |
| Accounting |
| Purchases |
| Sales |
| Purchases |
| Sales |
|
|
|
|
|
|
|
|
|
|
|
|
|
Power - swaps and contracts for differences |
|
|
|
|
|
|
|
|
|
|
|
(maturing 2006 to 2011) |
| Hedge |
| 3,732 |
| 9,008 |
| — |
| — |
|
(maturing 2006 to 2010) |
| Non-hedge |
| 1,631 |
| 972 |
| — |
| — |
|
Gas - swaps, futures and options |
|
|
|
|
|
|
|
|
|
|
|
(maturing 2006 to 2016) |
| Hedge |
| — |
| — |
| 87 |
| 62 |
|
(maturing 2006 to 2008) |
| Non-hedge |
| — |
| — |
| 15 |
| 21 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Power (GWh) |
| Gas (Bcf) |
| ||||
Notional Volumes |
| Accounting |
| Purchases |
| Sales |
| Purchases |
| Sales |
|
|
|
|
|
|
|
|
|
|
|
|
|
Power - swaps and contracts for differences |
| Hedge |
| 2,566 |
| 7,780 |
| — |
| — |
|
|
| Non-hedge |
| 1,332 |
| 456 |
| — |
| — |
|
|
|
|
|
|
|
|
|
|
|
|
|
Gas - swaps, futures and options |
| Hedge |
| — |
| — |
| 91 |
| 69 |
|
|
| Non-hedge |
| — |
| — |
| 15 |
| 18 |
|
|
|
|
|
|
|
|
|
|
|
|
17
4. Long-Term Debt
In January 2006, the company issued $300 million of 4.3 per cent medium-term notes due 2011 and in March 2006, the company issued US$500 million of 5.85 per cent senior unsecured notes due 2036.
In April 2006, TC PipeLines, LP (PipeLines LP) borrowed US$307 million under its unsecured credit facility to finance the cash portion of the purchase price of its acquisition of an additional 20 per cent interest in Northern Border Pipeline Company (Northern Border). The credit facility has a term of two years and all amounts outstanding will be due and payable on March 31, 2008. Borrowings under the credit facility will bear interest based, at PipeLines LP’s election, on the London interbank offered rate or the base rate plus, in either case, an applicable margin.
5. Discontinued Operations
TransCanada’s net income for the six months ended June 30, 2006 includes $28 million or $0.06 per share of net income from discontinued operations, reflecting settlements received in first quarter 2006 from bankruptcy claims related to TransCanada’s Gas Marketing business divested in 2001.
6. Acquisitions and Dispositions
In April 2006, PipeLines LP closed its acquisition of an additional 20 per cent general partnership interest in Northern Border for US$307 million bringing its total general partnership interest to 50 per cent. As part of the transaction, PipeLines LP indirectly assumed approximately US$120 million of debt of Northern Border. Of the total purchase price, US$114 million was allocated to goodwill and the remainder was allocated primarily to plant, property and equipment. Northern Border became a jointly controlled entity and TransCanada commenced proportionately consolidating its investment in Northern Border on a prospective basis as of April 2006. As part of the transaction, and effective by early second quarter 2007, a subsidiary of TransCanada will become the operator of Northern Border which is currently operated by a subsidiary of ONEOK Inc. (ONEOK).
Concurrent with this transaction, TransCanada closed the sale of its 17.5 per cent general partner interest in Northern Border Partners, L.P. to a subsidiary of ONEOK, for net proceeds of approximately US$30 million, resulting in an after-tax gain of $13 million. The net gain was recorded in the Pipelines segment and the company recorded a $10 million income tax charge, including $12 million of current income tax expense, on this transaction.
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7. Income Taxes
In second quarter 2006, TransCanada recorded a $33 million future income tax benefit ($23 million in Energy and $10 million in Corporate) as a result of a reduction in Canadian federal and provincial corporate income tax rates enacted in second quarter 2006.
8. Employee Future Benefits
The net benefit plan expense for the company’s defined benefit pension plans and other post-employment benefit plans for the three months and six months ended June 30, respectively, is as follows.
Three months ended June 30 |
| Pension Benefit Plans |
| Other Benefit Plans |
| ||||
(unaudited - millions of dollars) |
| 2006 |
| 2005 |
| 2006 |
| 2005 |
|
Current service cost |
| 9 |
| 8 |
| 1 |
| 1 |
|
Interest cost |
| 16 |
| 16 |
| 2 |
| 2 |
|
Expected return on plan assets |
| (17 | ) | (16 | ) | (1 | ) | — |
|
Amortization of net actuarial loss |
| 7 |
| 4 |
| — |
| — |
|
Amortization of past service costs |
| 1 |
| — |
| 1 |
| — |
|
Net benefit cost recognized |
| 16 |
| 12 |
| 3 |
| 3 |
|
Six months ended June 30 |
| Pension Benefit Plans |
| Other Benefit Plans |
| ||||
(unaudited - millions of dollars) |
| 2006 |
| 2005 |
| 2006 |
| 2005 |
|
Current service cost |
| 18 |
| 15 |
| 1 |
| 1 |
|
Interest cost |
| 33 |
| 32 |
| 4 |
| 3 |
|
Expected return on plan assets |
| (35 | ) | (32 | ) | (1 | ) | — |
|
Amortization of transitional obligation related to regulated business |
| — |
| — |
| 1 |
| 1 |
|
Amortization of net actuarial loss |
| 14 |
| 8 |
| 1 |
| 1 |
|
Amortization of past service costs |
| 2 |
| 1 |
| 1 |
| — |
|
Net benefit cost recognized |
| 32 |
| 24 |
| 7 |
| 6 |
|
TransCanada welcomes questions from shareholders and potential investors. Please telephone:
Investor Relations, at 1-800-361-6522 (Canada and U.S. Mainland) or direct dial David Moneta/Myles Dougan at (403) 920-7911. The investor fax line is (403) 920-2457. Media Relations: Jennifer Varey at (403) 920-7859
Visit TransCanada’s Internet site at: http://www.transcanada.com
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