Document and Entity Information
Document and Entity Information - Jun. 30, 2015 - shares | Total |
Document and Entity Information | |
Entity Registrant Name | ENBRIDGE INC |
Entity Central Index Key | 895,728 |
Document Type | 6-K |
Document Period End Date | Jun. 30, 2015 |
Amendment Flag | false |
Current Fiscal Year End Date | --12-31 |
Entity Current Reporting Status | Yes |
Entity Filer Category | Accelerated Filer |
Entity Common Stock, Shares Outstanding | 860,079,695 |
Document Fiscal Year Focus | 2,015 |
Document Fiscal Period Focus | Q2 |
CONSOLIDATED STATEMENTS OF EARN
CONSOLIDATED STATEMENTS OF EARNINGS - CAD CAD in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Revenues | ||||
Commodity sales | CAD 5,975 | CAD 7,484 | CAD 11,206 | CAD 15,490 |
Gas distribution sales | 528 | 598 | 2,119 | 1,709 |
Transportation and other services | 2,128 | 1,944 | 3,235 | 3,348 |
Total revenues | 8,631 | 10,026 | 16,560 | 20,547 |
Expenses | ||||
Commodity costs | 5,799 | 7,386 | 10,841 | 15,119 |
Gas distribution costs | 300 | 337 | 1,664 | 1,183 |
Operating and administrative | 928 | 814 | 1,919 | 1,559 |
Depreciation and amortization | 485 | 393 | 959 | 759 |
Environmental costs, net of recoveries | 7 | 36 | (4) | 41 |
Goodwill impairment (Note 6) | 440 | 440 | ||
Total expenses | 7,959 | 8,966 | 15,819 | 18,661 |
Total operating income | 672 | 1,060 | 741 | 1,886 |
Income from equity investments | 109 | 65 | 242 | 179 |
Other income/(expense) | 158 | 215 | (299) | 77 |
Interest expense | (284) | (231) | (535) | (469) |
Earnings from continuing operations before income taxes | 655 | 1,109 | 149 | 1,673 |
Income taxes recovery/(expense) (Note 12) | (232) | (276) | 53 | (393) |
Earnings from continuing operations | 423 | 833 | 202 | 1,280 |
Discontinued operations (Note 4) | ||||
Earnings from discontinued operations before income taxes | 73 | |||
Income taxes from discontinued operations | (27) | |||
Earnings from discontinued operations | 46 | |||
Earnings | 423 | 833 | 202 | 1,326 |
(Earnings)/loss attributable to noncontrolling interests and redeemable noncontrolling interests | 224 | (18) | 134 | (66) |
Earnings attributable to Enbridge Inc. | 647 | 815 | 336 | 1,260 |
Preference share dividends | (70) | (59) | (142) | (114) |
Earnings attributable to Enbridge Inc. common shareholders | 577 | 756 | 194 | 1,146 |
Earnings attributable to Enbridge Inc. common shareholders | ||||
Earnings from continuing operations | 577 | 756 | 194 | 1,100 |
Earnings from discontinued operations, net of tax | 46 | |||
Earnings attributable to Enbridge Inc. common shareholders | CAD 577 | CAD 756 | CAD 194 | CAD 1,146 |
Earnings per common share attributable to Enbridge Inc. common shareholders (Note 8) | ||||
Continuing operations (in Canadian dollars per share) | CAD 0.68 | CAD 0.92 | CAD 0.23 | CAD 1.34 |
Discontinued operations (in Canadian dollars per share) | 0.05 | |||
Total earnings per common share (in Canadian dollars per share) | 0.68 | 0.92 | 0.23 | 1.39 |
Diluted earnings per common share attributable to Enbridge Inc. common shareholders (Note 8) | ||||
Continuing operations (in Canadian dollars per share) | 0.67 | 0.91 | 0.23 | 1.33 |
Discontinued operations (in Canadian dollars per share) | 0.05 | |||
Total diluted earnings per common share (in Canadian dollars per share) | CAD 0.67 | CAD 0.91 | CAD 0.23 | CAD 1.38 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - CAD CAD in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME | ||||
Earnings | CAD 423 | CAD 833 | CAD 202 | CAD 1,326 |
Other comprehensive income/(loss), net of tax | ||||
Change in unrealized gains/(loss) on cash flow hedges | 285 | (210) | (220) | (514) |
Change in unrealized gains/(loss) on net investment hedges | 80 | 98 | (346) | 9 |
Other comprehensive income from equity investees | 13 | 3 | 22 | 7 |
Reclassification to earnings of realized cash flow hedges | 19 | 35 | 10 | 75 |
Reclassification to earnings of unrealized cash flow hedges | (6) | 4 | (36) | 24 |
Reclassification to earnings of pension plans and other postretirement benefits (OPEB) amortization amounts | 9 | 2 | 13 | 3 |
Change in foreign currency translation adjustment | (304) | (507) | 1,293 | 16 |
Other comprehensive income/(loss) | 96 | (575) | 736 | (380) |
Comprehensive income | 519 | 258 | 938 | 946 |
Comprehensive loss attributable to noncontrolling interests and redeemable noncontrolling interests | 171 | 168 | 46 | 27 |
Comprehensive income attributable to Enbridge Inc. | 690 | 426 | 984 | 973 |
Preference share dividends | (70) | (59) | (142) | (114) |
Comprehensive income attributable to Enbridge Inc. common shareholders | CAD 620 | CAD 367 | CAD 842 | CAD 859 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY - CAD CAD in Millions | Total Enbridge Inc. shareholders' equity | Preference shares | Common shares | Additional paid-in capital | Retained earnings | Accumulated other comprehensive loss (Note 9) | Reciprocal shareholding | Noncontrolling interests | Comprehensive income/(loss) | Total |
Balance at Dec. 31, 2013 | CAD 5,141 | CAD 5,744 | CAD 746 | CAD 2,550 | CAD (599) | CAD (86) | CAD 4,014 | |||
Increase (Decrease) in Stockholders' Equity | ||||||||||
Shares issued | 762 | 388 | ||||||||
Dividend reinvestment and share purchase plan | 212 | |||||||||
Stock-based compensation | 19 | |||||||||
Options exercised | 30 | (8) | ||||||||
Dilution gains and other | (4) | |||||||||
Earnings attributable to Enbridge Inc. | 1,260 | CAD 1,260 | ||||||||
Preference share dividends | (114) | |||||||||
Common share dividends declared | (584) | |||||||||
Dividends paid to reciprocal shareholder | 9 | |||||||||
Redemption value adjustment attributable to redeemable noncontrolling interests | (230) | |||||||||
Other comprehensive income/(loss) attributable to Enbridge Inc. common shareholders | (287) | |||||||||
Earnings/(loss) attributable to noncontrolling interests | 61 | CAD 61 | ||||||||
Change in unrealized loss on cash flow hedges | (133) | (133) | ||||||||
Change in foreign currency translation adjustment | 24 | 24 | ||||||||
Reclassification to earnings of realized cash flow hedges | 16 | 16 | ||||||||
Reclassification to earnings of unrealized cash flow hedges | 8 | 8 | ||||||||
Other comprehensive income/(loss) attributable to noncontrolling interests, net of tax | (85) | (85) | ||||||||
Comprehensive loss attributable to noncontrolling interests | (24) | (24) | ||||||||
Distributions | (260) | |||||||||
Contributions | 81 | |||||||||
Other | (4) | |||||||||
Dividends paid per common share (in Canadian dollars per share) | CAD 0.70 | |||||||||
Balance at Jun. 30, 2014 | CAD 14,949 | 5,903 | 6,374 | 753 | 2,891 | (886) | (86) | 3,807 | CAD 18,756 | |
Balance at Dec. 31, 2014 | 6,515 | 6,669 | 2,549 | 1,571 | (435) | (83) | 2,015 | 18,801 | ||
Increase (Decrease) in Stockholders' Equity | ||||||||||
Dividend reinvestment and share purchase plan | 316 | |||||||||
Stock-based compensation | 23 | |||||||||
Options exercised | 54 | (14) | ||||||||
Dilution gains and other | 34 | |||||||||
Earnings attributable to Enbridge Inc. | 336 | CAD 336 | ||||||||
Preference share dividends | (142) | |||||||||
Common share dividends declared | (795) | |||||||||
Dividends paid to reciprocal shareholder | 11 | |||||||||
Redemption value adjustment attributable to redeemable noncontrolling interests | 312 | |||||||||
Other comprehensive income/(loss) attributable to Enbridge Inc. common shareholders | 648 | |||||||||
Earnings/(loss) attributable to noncontrolling interests | (149) | (149) | ||||||||
Change in unrealized loss on cash flow hedges | (16) | (16) | ||||||||
Change in foreign currency translation adjustment | 123 | 123 | ||||||||
Reclassification to earnings of realized cash flow hedges | (9) | (9) | ||||||||
Reclassification to earnings of unrealized cash flow hedges | (26) | (26) | ||||||||
Other comprehensive income/(loss) attributable to noncontrolling interests, net of tax | 72 | 72 | ||||||||
Comprehensive loss attributable to noncontrolling interests | (77) | CAD (77) | ||||||||
Distributions | (324) | |||||||||
Contributions | 579 | |||||||||
Dilution loss | (53) | |||||||||
Drop down of interest to Enbridge Energy Partners, L.P. (Note 10) | 218 | (304) | ||||||||
Other | (5) | |||||||||
Dividends paid per common share (in Canadian dollars per share) | CAD 0.93 | |||||||||
Balance at Jun. 30, 2015 | CAD 17,787 | CAD 6,515 | CAD 7,039 | CAD 2,810 | CAD 1,293 | CAD 213 | CAD (83) | CAD 1,831 | CAD 19,618 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - CAD CAD in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Operating activities | ||||
Earnings | CAD 423 | CAD 833 | CAD 202 | CAD 1,326 |
Earnings from discontinued operations | (46) | |||
Depreciation and amortization | 485 | 393 | 959 | 759 |
Deferred income taxes | 183 | 277 | (139) | 346 |
Changes in unrealized (gains)/loss on derivative instruments, net | (352) | (607) | 1,131 | (363) |
Cash distributions in excess of equity earnings | 80 | 37 | 126 | 49 |
Impairment (Note 6) | 456 | 456 | ||
Gain on disposition (Note 4) | (29) | (34) | (16) | |
Hedge ineffectiveness (Note 11) | (12) | 5 | (30) | 31 |
Inventory revaluation allowance | 2 | 45 | 2 | |
Other | 20 | 1 | (86) | 35 |
Changes in regulatory assets and liabilities | 21 | 10 | 32 | 15 |
Changes in environmental liabilities, net of recoveries | (10) | 10 | (20) | (36) |
Changes in operating assets and liabilities | 83 | (147) | 218 | (976) |
Cash provided by continuing operations | 1,350 | 812 | 2,860 | 1,126 |
Cash provided by discontinued operations (Note 4) | 19 | |||
Net operating activities | 1,350 | 812 | 2,860 | 1,145 |
Investing activities | ||||
Additions to property, plant and equipment | (1,973) | (2,635) | (3,563) | (5,043) |
Long-term investments | (37) | (212) | (179) | (525) |
Additions to intangible assets | (43) | (58) | (62) | (111) |
Acquisitions | (106) | |||
Proceeds from disposition | 34 | 34 | 19 | |
Affiliate loans, net | 3 | 3 | 6 | 6 |
Changes in restricted cash | (9) | 16 | (21) | 21 |
Cash provided by continuing operations | (2,025) | (2,886) | (3,891) | (5,633) |
Cash provided by discontinued operations (Note 4) | 4 | |||
Net investing activities | (2,025) | (2,886) | (3,891) | (5,629) |
Financing activities | ||||
Net change in bank indebtedness and short-term borrowings | (95) | 83 | (551) | 444 |
Net change in commercial paper and credit facility draws | 1,215 | 377 | 2,236 | 1,215 |
Debenture and term note issues | 1,928 | 3,456 | ||
Debenture and term note repayments | (19) | (425) | (395) | (625) |
Contributions from noncontrolling interests | 54 | 40 | 579 | 81 |
Distributions to noncontrolling interests | (166) | (130) | (324) | (260) |
Distributions to redeemable noncontrolling interests | (26) | (19) | (53) | (37) |
Preference shares issued | 490 | 758 | ||
Common shares issued | 32 | 390 | 40 | 406 |
Preference share dividends | (71) | (57) | (142) | (111) |
Common share dividends | (238) | (187) | (479) | (372) |
Net financing activities | 686 | 2,490 | 911 | 4,955 |
Effect of translation of foreign denominated cash and cash equivalents | 7 | (17) | 68 | 1 |
Increase/(decrease) in cash and cash equivalents | 18 | 399 | (52) | 472 |
Cash and cash equivalents at beginning of period - discontinued operations | 20 | |||
Cash and cash equivalents at beginning of period - continuing operations | 1,191 | 849 | 1,261 | 756 |
Cash and cash equivalents at end of period | 1,209 | 1,248 | 1,209 | 1,248 |
Cash and cash equivalents - continuing operations | CAD 1,191 | CAD 849 | CAD 1,261 | CAD 756 |
CONSOLIDATED STATEMENTS OF FINA
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION - CAD CAD in Millions | Jun. 30, 2015 | Dec. 31, 2014 |
Current assets | ||
Cash and cash equivalents | CAD 1,209 | CAD 1,261 |
Restricted cash | 68 | 47 |
Accounts receivable and other (Note 5) | 5,300 | 5,504 |
Accounts receivable from affiliates | 14 | 241 |
Inventory | 1,202 | 1,148 |
Total Current assets | 7,793 | 8,201 |
Property, plant and equipment, net | 58,538 | 53,830 |
Long-term investments | 6,154 | 5,408 |
Deferred amounts and other assets | 3,216 | 3,208 |
Intangible assets, net | 1,259 | 1,166 |
Goodwill (Note 6) | 75 | 483 |
Deferred income taxes | 681 | 561 |
Total Assets | 77,716 | 72,857 |
Current liabilities | ||
Bank indebtedness | 313 | 507 |
Short-term borrowings | 684 | 1,041 |
Accounts payable and other | 7,014 | 6,444 |
Accounts payable to affiliates | 25 | 80 |
Interest payable | 265 | 264 |
Environmental liabilities | 152 | 161 |
Current maturities of long-term debt (Note 7) | 1,064 | 1,004 |
Total Current liabilities | 9,517 | 9,501 |
Long-term debt (Note 7) | 36,309 | 33,423 |
Other long-term liabilities | 5,120 | 4,041 |
Deferred income taxes | 5,237 | 4,842 |
Total Liabilities | CAD 56,183 | CAD 51,807 |
Contingencies (Note 14) | ||
Redeemable noncontrolling interests | CAD 1,915 | CAD 2,249 |
Share capital | ||
Preference shares | 6,515 | 6,515 |
Common shares (860 and 852 outstanding at June 30, 2015 and December 31, 2014, respectively) | 7,039 | 6,669 |
Additional paid-in capital | 2,810 | 2,549 |
Retained earnings | 1,293 | 1,571 |
Accumulated other comprehensive income/(loss) (Note 9) | 213 | (435) |
Reciprocal shareholding | (83) | (83) |
Total Enbridge Inc. shareholders' equity | 17,787 | 16,786 |
Noncontrolling interests | 1,831 | 2,015 |
Total Equity | 19,618 | 18,801 |
Total Liabilities and equity | CAD 77,716 | CAD 72,857 |
CONSOLIDATED STATEMENTS OF FIN7
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION (Parenthetical) - shares shares in Millions | Jun. 30, 2015 | Dec. 31, 2014 |
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION | ||
Common shares, outstanding | 860 | 852 |
BASIS OF PRESENTATION
BASIS OF PRESENTATION | 6 Months Ended |
Jun. 30, 2015 | |
BASIS OF PRESENTATION | |
BASIS OF PRESENTATION | 1. BASIS OF PRESENTATION The accompanying unaudited interim consolidated financial statements of Enbridge Inc. (Enbridge or the Company) have been prepared in accordance with accounting principles generally accepted in the United States of America (U.S. GAAP) and Regulation S-X for interim consolidated financial information. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete consolidated financial statements and should be read in conjunction with the Company’s consolidated financial statements and notes thereto for the year ended December 31, 2014. In the opinion of management, the interim consolidated financial statements contain all adjustments, consisting only of normal recurring adjustments with the exception of an out-of-period adjustment further described in Note 3, Segmented Information, which management considers necessary to present fairly the Company’s financial position as at June 30, 2015 and results of operations and cash flows for the three and six months ended June 30, 2015 and 2014. These interim consolidated financial statements follow the same significant accounting policies as those included in the Company’s consolidated financial statements as at and for the year ended December 31, 2014, except for the adoption of new standards (Note 2) . Amounts are stated in Canadian dollars unless otherwise noted. The Company’s operations and earnings for interim periods can be affected by seasonal fluctuations within the gas distribution utility business, as well as other factors such as the supply of and demand for crude oil and natural gas. |
SIGNIFICANT ACCOUNTING POLICIES
SIGNIFICANT ACCOUNTING POLICIES | 6 Months Ended |
Jun. 30, 2015 | |
SIGNIFICANT ACCOUNTING POLICIES | |
SIGNIFICANT ACCOUNTING POLICIES | 2. SIGNIFICANT ACCOUNTING POLICIES ADOPTION OF NEW STANDARDS Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity Effective January 1, 2015, the Company prospectively adopted Accounting Standards Update (ASU) 2014-08 which changes the criteria and disclosures for reporting discontinued operations. The revised criteria will in general, result in fewer transactions being categorized as discontinued operations. There was no material impact to the consolidated financial statements as a result of adopting this update. Extraordinary and Unusual Items Effective January 1, 2015, the Company prospectively adopted ASU 2015-01, which eliminates the concept of extraordinary items from U.S. GAAP. Entities will no longer be required to separately classify and present extraordinary items in the income statement. There was no material impact to the Company’s consolidated financial statements as a result of adopting this update. FUTURE ACCOUNTING POLICY CHANGES Measurement Date of Defined Benefit Obligation and Plan Assets ASU 2015-04 was issued in April 2015 with the intent to simplify the fair value measurement of defined benefit plan assets and obligations. For entities with a fiscal year end that does not coincide with a month end, the new standard permits an entity to measure its defined benefit plan assets and obligations using the month end that is closest to the entity’s fiscal year end. In addition, where there are significant events in an interim period that would trigger a re-measurement of the plan assets and obligations, an entity is also permitted to re-measure such assets and obligations using the month end that is closest to the date of the significant event. The accounting update is effective for financial statements issued for fiscal years beginning after December 15, 2015 and is to be applied on a prospective basis. The adoption of the pronouncement is not anticipated to have a material impact on the Company’s consolidated financial statements. Simplifying the Presentation of Debt Issuance Costs ASU 2015-03 was issued in April 2015 with the intent to simplify the presentation of debt issuance costs. The new standard requires a debt issuance cost related to a recognized debt liability to be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, as consistent with the presentation of debt discounts or premiums. This accounting update is effective for financial statements issued for fiscal years beginning after December 15, 2015 on a retrospective basis. The adoption of the pronouncement is not anticipated to have a material impact on the Company’s consolidated financial statements. Amendments to the Consolidation Analysis ASU 2015-02, issued in February 2015, revises the current consolidation guidance which results in a change in the determination of whether an entity consolidates certain types of legal entities. The Company is currently assessing the impact of the new standard on its consolidated financial statements. The new standard is effective for annual and interim reporting periods beginning after December 15, 2015 and may be applied on a full or modified retrospective basis. Revenue from Contracts with Customers ASU 2014-09 was issued in May 2014 with the intent of significantly enhancing comparability of revenue recognition practices across entities and industries. The new standard provides a single principles-based, five-step model to be applied to all contracts with customers and introduces new, increased disclosure requirements. The Company is currently assessing the impact of the new standard on its consolidated financial statements. In July 2015, the effective date of the new standard was delayed by one year and the new standard is now effective for annual and interim periods beginning on or after December 15, 2017 and may be applied on either a full or modified retrospective basis. |
SEGMENTED INFORMATION
SEGMENTED INFORMATION | 6 Months Ended |
Jun. 30, 2015 | |
SEGMENTED INFORMATION | |
SEGMENTED INFORMATION | 3. SEGMENTED INFORMATION Gas Pipelines, Processing Liquids Gas and Energy Sponsored Three months ended June 30, 2015 Pipelines Distribution Services Investments Corporate 1 Consolidated (millions of Canadian dollars) Revenues - Commodity and gas distribution costs ) ) ) ) - ) Operating and administrative ) ) ) ) ) ) Depreciation and amortization ) ) ) ) ) ) Environmental costs, net of recoveries ) - - - ) Goodwill impairment - - - ) - ) ) ) Income/(loss) from equity investments - ) ) Other income/(expense) ) ) Interest income/(expense) ) ) ) ) ) Income taxes expense ) ) ) ) ) ) Earnings/(loss) ) Loss attributable to noncontrolling interests and redeemable noncontrolling interests - - - Preference share dividends - - - - ) ) Earnings/(loss) attributable to Enbridge Inc. common shareholders ) Additions to property, plant and equipment 2 Three months ended June 30, 2014 Liquids Pipelines Gas Distribution Gas Pipelines, Processing and Energy Services Sponsored Investments Corporate 1 Consolidated (millions of Canadian dollars) Revenues - Commodity and gas distribution costs - ) ) ) - ) Operating and administrative ) ) ) ) ) ) Depreciation and amortization ) ) ) ) ) ) Environmental costs, net of recoveries - - ) - ) ) Income/(loss) from equity investments - ) Other income/(expense) ) ) Interest income/(expense) ) ) ) ) ) Income taxes expense ) ) ) ) ) ) Earnings Earnings attributable to noncontrolling interests and redeemable noncontrolling interests ) - - ) - ) Preference share dividends - - - - ) ) Earnings attributable to Enbridge Inc. common shareholders Additions to property, plant and equipment 2 Six months ended June 30, 2015 Liquids Pipelines Gas Distribution Gas Pipelines, Processing and Energy Services Sponsored Investments Corporate 1 Consolidated (millions of Canadian dollars) Revenues - Commodity and gas distribution costs ) ) ) ) ) ) Operating and administrative ) ) ) ) ) ) Depreciation and amortization ) ) ) ) ) ) Environmental costs, net of recoveries - - - - Goodwill impairment - - - ) - ) ) Income/(loss) from equity investments - ) Other income/(expense) ) ) ) ) ) Interest income/(expense) ) ) ) ) ) Income taxes recovery/(expense) ) ) ) Earnings/(loss) ) ) (Earnings)/loss attributable to noncontrolling interests and redeemable noncontrolling interests ) - - Preference share dividends - - - - ) ) Earnings/(loss) attributable to Enbridge Inc. common shareholders ) ) Additions to property, plant and equipment 2 Six months ended June 30, 2014 Liquids Pipelines Gas Distribution Gas Pipelines, Processing and Energy Services Sponsored Investments Corporate 1 Consolidated (millions of Canadian dollars) Revenues - Commodity and gas distribution costs - ) ) ) - ) Operating and administrative ) ) ) ) ) ) Depreciation and amortization ) ) ) ) ) ) Environmental costs, net of recoveries - - ) - ) ) Income/(loss) from equity investments - ) Other income/(expense) ) Interest income/(expense) ) ) ) ) ) Income taxes recovery/(expense) ) ) ) ) ) Earnings from continuing operations Discontinued operations Earnings from discontinued operations before income tax - - - - Income taxes from discontinued operations - - ) - - ) Earnings from discontinued operations - - - - Earnings Earnings attributable to noncontrolling interests and redeemable noncontrolling interests ) - - ) - ) Preference share dividends - - - - ) ) Earnings attributable to Enbridge Inc. common shareholders Additions to property, plant and equipment 2 1 Included within the Corporate segment was Interest income of $226 million and $422 million for the three and six months ended June 30, 2015, respectively, (2014 - $161 million and $316 million, respectively) charged to other operating segments. 2 Includes allowance for equity funds used during construction. OUT-OF-PERIOD ADJUSTMENT Earnings attributable to Enbridge Inc. common shareholders for the six months ended June 30, 2015 were increased by an out-of-period adjustment of $71 million within the Corporate segment in respect of an overstatement of deferred income tax expense in 2013 and 2014. TOTAL ASSETS June 30, 2015 December 31, 2014 (millions of Canadian dollars) Liquids Pipelines Gas Distribution Gas Pipelines, Processing and Energy Services Sponsored Investments Corporate |
ACQUISITION AND DISPOSITIONS
ACQUISITION AND DISPOSITIONS | 6 Months Ended |
Jun. 30, 2015 | |
ACQUISITION AND DISPOSITIONS | |
ACQUISITION AND DISPOSITIONS | 4. ACQUISITION AND DISPOSITIONS ACQUISITION Magic Valley and Wildcat Wind Farms Subsequent to the December 31, 2014 acquisition of an 80% controlling interest in Magic Valley and Wildcat wind farms, the Company completed the valuation of the acquired assets, resulting in no change to the purchase price allocation previously disclosed. The wind farms are included within the Gas Pipelines, Processing and Energy Services segment. OTHER DISPOSITION In May 2015, Enbridge Income Fund sold certain of its crude oil pipeline system assets to an unrelated party for gross proceeds of $26 million. A gain of $22 million was presented within Other income/(expense) on the Consolidated Statements of Earnings. DISCONTINUED OPERATIONS In March 2014, the Company completed the sale of certain of its Enbridge Offshore Pipelines assets located within the Stingray corridor to an unrelated third party for cash proceeds of $11 million (US$10 million), subject to working capital adjustments. The gain of $70 million (US$63 million), which resulted from the cash proceeds and the disposition of net liabilities held for sale of $59 million (US$53 million), is presented as Earnings from discontinued operations for the six months ended June 30, 2014. The results of operations, including revenues of $4 million and related cash flows, have also been presented as discontinued operations for the six months ended June 30, 2014. These amounts are included within the Gas Pipelines, Processing and Energy Services segment. |
ACCOUNTS RECEIVABLE AND OTHER
ACCOUNTS RECEIVABLE AND OTHER | 6 Months Ended |
Jun. 30, 2015 | |
ACCOUNTS RECEIVABLE AND OTHER | |
ACCOUNTS RECEIVABLE AND OTHER | 5. ACCOUNTS RECEIVABLE AND OTHER Pursuant to a Receivables Purchase Agreement (the Receivables Agreement) executed in 2013, certain trade and accrued receivables (the Receivables) have been sold by certain Enbridge Energy Partners, L.P. (EEP) subsidiaries to an Enbridge wholly-owned special purpose entity (SPE). The Receivables owned by the SPE are not available to Enbridge except through its 100% ownership in such SPE. The Receivables Agreement provides for purchases to occur on a monthly basis through to December 2016, provided accumulated purchases net of collections do not exceed US$450 million at any one point. The value of trade and accrued receivables outstanding owned by the SPE totalled US$341 million ($425 million) and US$378 million ($439 million) as at June 30, 2015 and December 31, 2014, respectively. |
GOODWILL
GOODWILL | 6 Months Ended |
Jun. 30, 2015 | |
GOODWILL. | |
GOODWILL | 6. GOODWILL During the quarter ended June 30, 2015, the Company recorded an impairment charge of $440 million ($167 million after-tax attributable to Enbridge) related to EEP’s natural gas and natural gas liquids (NGL) businesses, which EEP holds directly and indirectly through its partially-owned subsidiary, Midcoast Energy Partners, L.P. Due to a prolonged decline in commodity prices, reduction in producers’ expected drilling programs have negatively impacted forecasted cash flows from EEP’s natural gas and NGL systems. This change in circumstance led to completion of an impairment test, resulting in a full impairment of goodwill on EEP’s natural gas and NGL businesses. In performing the impairment assessment, EEP measured the fair value of its reporting units primarily by using a discounted cash flow analysis and it also considered overall market capitalization of its business, cash flow measurement data and other factors. EEP’s estimate of fair value required it to use significant unobservable inputs representative of a Level 3 fair value measurement, including assumptions related to the future performance of its reporting units. |
DEBT
DEBT | 6 Months Ended |
Jun. 30, 2015 | |
DEBT | |
DEBT | 7. DEBT CREDIT FACILITIES The following table provides a summary of the Company’s committed credit facilities as at June 30, 2015 and December 31, 2014. June 30, 2015 December 31, 2014 Maturity Dates Total Facilities Draws 1 Available Total Facilities (millions of Canadian dollars) Liquids Pipelines - Gas Distribution 2016-2019 Sponsored Investments 2016-2019 Corporate 2016-2019 Total committed credit facilities 1 Includes facility draws, letters of credit and commercial paper issuances that are back-stopped by the credit facility. In addition to the committed credit facilities noted above, the Company also has $381 million (December 31, 2014 - $361 million) of uncommitted demand credit facilities, of which $86 million (December 31, 2014 - $80 million) was unutilized as at June 30, 2015. Credit facilities carry a weighted average standby fee of 0.2% per annum on the unused portion and draws bear interest at market rates. Certain credit facilities serve as a back-stop to the commercial paper programs and the Company has the option to extend the facilities, which are currently set to mature from 2016 to 2019 . Commercial paper and credit facility draws, net of short-term borrowings, of $11,515 million (December 31, 2014 - $8,960 million) are supported by the availability of long-term committed credit facilities and therefore have been classified as long-term debt. |
EARNINGS PER COMMON SHARE
EARNINGS PER COMMON SHARE | 6 Months Ended |
Jun. 30, 2015 | |
EARNINGS PER COMMON SHARE | |
EARNINGS PER COMMON SHARE | 8. EARNINGS PER COMMON SHARE Earnings per common share is calculated by dividing earnings attributable to common shareholders by the weighted average number of common shares outstanding. The weighted average number of common shares outstanding has been reduced by the Company’s pro-rata weighted average interest in its own common shares of 12 million (2014 - 12 million) for the three and six months ended June 30, 2015, resulting from the Company’s reciprocal investment in Noverco Inc. The treasury stock method is used to determine the dilutive impact of stock options. This method assumes any proceeds from the exercise of stock options would be used to purchase common shares at the average market price during the period. Three months ended June 30, Six months ended June 30, (number of shares in millions) Weighted average shares outstanding Effect of dilutive options Diluted weighted average shares outstanding For the three and six months ended June 30, 2015, 5,851,770 anti-dilutive stock options (2014 - 5,945,800 and 7,183,912) with a weighted average exercise price of $59.14 (2014 - $48.80 and $48.12) were excluded from the diluted earnings per common share calculation. |
COMPONENTS OF ACCUMULATED OTHER
COMPONENTS OF ACCUMULATED OTHER COMPREHENSIVE INCOME/(LOSS) | 6 Months Ended |
Jun. 30, 2015 | |
COMPONENTS OF ACCUMULATED OTHER COMPREHENSIVE INCOME/(LOSS) | |
COMPONENTS OF ACCUMULATED OTHER COMPREHENSIVE INCOME/(LOSS) | 9. COMPONENTS OF ACCUMULATED OTHER COMPREHENSIVE INCOME/(LOSS) Changes in Accumulated other comprehensive income/(loss) (AOCI) attributable to Enbridge common shareholders for the six months ended June 30, 2015 and 2014 are as follows: Cash Flow Hedges Net Investment Hedges Cumulative Translation Adjustment Equity Investees Pension and OPEB Amortization Adjustment Total (millions of Canadian dollars) Balance at January 1, 2015 ) ) ) ) Other comprehensive income/(loss) retained in AOCI ) ) - Other comprehensive gains/(loss) reclassified to earnings Interest rate contracts 1 - - - - Commodity contracts 2 ) - - - - ) Foreign exchange contracts 3 - - - - Other contracts 4 - - - - Amortization of pension and OPEB actuarial loss 5 - - - - ) ) Tax impact Income tax on amounts retained in AOCI - ) - Income tax on amounts reclassified to earnings ) - - - ) ) - ) ) Balance at June 30, 2015 ) ) ) Cash Flow Hedges Net Investment Hedges Cumulative Translation Adjustment Equity Investees Pension and OPEB Amortization Adjustment Total (millions of Canadian dollars) Balance at January 1, 2014 ) ) ) ) ) Other comprehensive income/(loss) retained in AOCI ) ) - ) Other comprehensive gains reclassified to earnings Interest rate contracts 1 - - - - Commodity contracts 2 - - - - Foreign exchange contracts 3 - - - - Other contracts 4 - - - - Amortization of pension and OPEB actuarial loss 5 - - - - ) ) ) Tax impact Income tax on amounts retained in AOCI ) - - - Income tax on amounts reclassified to earnings ) - - - ) ) ) - - ) Balance at June 30, 2014 ) ) ) ) ) 1 Reported within Interest expense in the Consolidated Statements of Earnings. 2 Reported within Commodity sales and Commodity costs in the Consolidated Statements of Earnings. 3 Reported within Other income/(expense) in the Consolidated Statements of Earnings. 4 Reported within Operating and administrative expense in the Consolidated Statements of Earnings. 5 These components are included in the computation of net periodic pension costs and are reported within Operating and administrative expense in the Consolidated Statements of Earnings. |
NONCONTROLLING INTERESTS
NONCONTROLLING INTERESTS | 6 Months Ended |
Jun. 30, 2015 | |
NONCONTROLLING INTEREST | |
NONCONTROLLING INTERESTS | 10. NONCONTROLLING INTERESTS ALBERTA CLIPPER DROP DOWN On January 2, 2015, Enbridge transferred its 66.7% interest in the United States segment of the Alberta Clipper pipeline, held through a wholly-owned Enbridge subsidiary in the United States, to EEP for aggregate consideration of $1.1 billion (US$1 billion), consisting of approximately $814 million (US$694 million) of Class E equity units issued to Enbridge by EEP and the repayment of approximately $359 million (US$306 million) of indebtedness owed to Enbridge. Prior to the transfer, EEP owned the remaining 33.3% interest in the United States segment of the Alberta Clipper pipeline. The Class E units issued to Enbridge are entitled to the same distributions as the Class A units held by the public and are convertible into Class A units on a one-for-one basis at Enbridge’s option. The transaction applies to all distributions declared subsequent to the transfer. The Class E units are redeemable at EEP’s option after 30 years, if not converted by Enbridge prior to that time. The units have a liquidation preference equal to their notional value at December 23, 2014 of US$38.31 per unit, which was determined based on the trailing five-day volume-weighted average price of EEP’s Class A common units. Enbridge’s economic interest in EEP increased from 33.7% to 36.6% as a result of the transfer. EEP recorded the Class E units at fair value. As a result, the Company recorded a decrease in Noncontrolling interests of $304 million and increases in Additional paid-in capital and Deferred income tax liabilities of $218 and $86 million, respectively. EEP ISSUANCE OF CLASS A UNITS In March 2015, EEP completed a listed share issuance. The Company participated only to the extent to maintain its 2% General Partner interest, resulting in a decrease in the overall economic interest from 36.6% to 35.9%. The listed share issuance resulted in contributions of $366 million (US$289 million) from noncontrolling interest holders. In addition to its economic interest, Enbridge also holds interest in the preferred units of EEP. |
RISK MANAGEMENT AND FINANCIAL I
RISK MANAGEMENT AND FINANCIAL INSTRUMENTS | 6 Months Ended |
Jun. 30, 2015 | |
RISK MANAGEMENT AND FINANCIAL INSTRUMENTS | |
RISK MANAGEMENT AND FINANCIAL INSTRUMENTS | 11. RISK MANAGEMENT AND FINANCIAL INSTRUMENTS MARKET RISK The Company’s earnings, cash flows and other comprehensive income/(loss) (OCI) are subject to movements in foreign exchange rates, interest rates, commodity prices and the Company’s share price (collectively, market risk). Formal risk management policies, processes and systems have been designed to mitigate these risks. The following summarizes the types of market risks to which the Company is exposed and the risk management instruments used to mitigate them. The Company uses a combination of qualifying and non-qualifying derivative instruments to manage the risks noted below. Foreign Exchange Risk The Company generates certain revenues, incurs expenses, and holds a number of investments and subsidiaries that are denominated in currencies other than Canadian dollars. As a result, the Company’s earnings, cash flows and OCI are exposed to fluctuations resulting from foreign exchange rate variability. The Company has implemented a policy whereby, at a minimum, it hedges a level of foreign currency denominated earnings exposures over a five year forecast horizon. A combination of qualifying and non-qualifying derivative instruments is used to hedge anticipated foreign currency denominated revenues and expenses, and to manage variability in cash flows. The Company hedges certain net investments in United States dollar denominated investments and subsidiaries using foreign currency derivatives and United States dollar denominated debt. Interest Rate Risk The Company’s earnings and cash flows are exposed to short-term interest rate variability due to the regular repricing of its variable rate debt, primarily commercial paper. Pay fixed-receive floating interest rate swaps and options are used to hedge against the effect of future interest rate movements. The Company has implemented a program to significantly mitigate the impact of short-term interest rate volatility on interest expense through 2019 via execution of floating to fixed interest rate swaps with an average swap rate of 2.3%. The Company’s earnings and cash flows are also exposed to variability in longer-term interest rates ahead of anticipated fixed rate debt issuances. Forward starting interest rate swaps are used to hedge against the effect of future interest rate movements. The Company has implemented a program to significantly mitigate its exposure to long-term interest rate variability on select forecast term debt issuances through 2019 via execution of floating to fixed interest rate swaps with an average swap rate of 4.0 % . The Company also monitors its debt portfolio mix of fixed and variable rate debt instruments to maintain a consolidated portfolio of debt within its Board of Directors approved policy limit of a maximum of 25% floating rate debt as a percentage of total debt outstanding. The Company primarily uses qualifying derivative instruments to manage interest rate risk. Commodity Price Risk The Company’s earnings and cash flows are exposed to changes in commodity prices as a result of its ownership interest in certain assets and investments, as well as through the activities of its energy services subsidiaries. These commodities include natural gas, crude oil, power and NGL. The Company employs financial derivative instruments to fix a portion of the variable price exposures that arise from physical transactions involving these commodities. The Company uses primarily non-qualifying derivative instruments to manage commodity price risk. Equity Price Risk Equity price risk is the risk of earnings fluctuations due to changes in the Company’s share price. The Company has exposure to its own common share price through the issuance of various forms of stock-based compensation, which affect earnings through revaluation of the outstanding units every period. The Company uses equity derivatives to manage the earnings volatility derived from one form of stock-based compensation, restricted stock units. The Company uses a combination of qualifying and non-qualifying derivative instruments to manage equity price risk. TOTAL DERIVATIVE INSTRUMENTS The following table summarizes the Consolidated Statements of Financial Position location and carrying value of the Company’s derivative instruments. The Company did not have any outstanding fair value hedges at June 30, 2015 or December 31, 2014. The Company generally has a policy of entering into individual International Swaps and Derivatives Association, Inc. (ISDA) agreements, or other similar derivative agreements, with the majority of its derivative counterparties. These agreements provide for the net settlement of derivative instruments outstanding with specific counterparties in the event of bankruptcy or other significant credit event, and would reduce the Company’s credit risk exposure on derivative asset positions outstanding with the counterparties in these particular circumstances. The following table also summarizes the maximum potential settlement in the event of these specific circumstances. All amounts are presented gross in the Consolidated Statements of Financial Position. June 30, 2015 Derivative Instruments Used as Cash Flow Hedges Derivative Instruments Used as Net Investment Hedges Non- Qualifying Derivative Instruments Total Gross Derivative Instruments as Presented Amounts Available for Offset Total Net Derivative Instruments (millions of Canadian dollars) Accounts receivable and other Foreign exchange contracts ) Interest rate contracts - - ) - Commodity contracts - ) Other contracts - - ) Deferred amounts and other assets Foreign exchange contracts - ) - Interest rate contracts - - ) Commodity contracts - ) Other contracts - - ) Accounts payable and other Foreign exchange contracts - ) ) ) ) Interest rate contracts ) - - ) ) Commodity contracts - - ) ) ) ) ) ) ) ) Other long-term liabilities Foreign exchange contracts - ) ) ) ) Interest rate contracts ) - - ) ) Commodity contracts - - ) ) ) Other contracts ) - - ) - ) ) ) ) ) ) Total net derivative asset/(liability) Foreign exchange contracts ) ) ) - ) Interest rate contracts ) - - ) - ) Commodity contracts - ) ) ) 1 ) Other contracts - - ) ) ) ) ) ) 1 Amount available for offset includes $14 million of cash collateral. December 31, 2014 Derivative Instruments Used as Cash Flow Hedges Derivative Instruments Used as Net Investment Hedges Non-Qualifying Derivative Instruments Total Gross Derivative Instruments as Presented Amounts Available for Offset Total Net Derivative Instruments (millions of Canadian dollars) Accounts receivable and other Foreign exchange contracts ) - Interest rate contracts - - ) Commodity contracts - ) Other contracts - - ) Deferred amounts and other assets Foreign exchange contracts - ) - Interest rate contracts - - ) - Commodity contracts - ) Other contracts - - ) Accounts payable and other Foreign exchange contracts ) ) ) ) ) Interest rate contracts ) - - ) ) Commodity contracts - - ) ) ) ) ) ) ) ) Other long-term liabilities Foreign exchange contracts - ) ) ) ) Interest rate contracts ) - - ) ) Commodity contracts - - ) ) ) ) ) ) ) ) Total net derivative asset/(liability) Foreign exchange contracts ) ) ) - ) Interest rate contracts ) - - ) - ) Commodity contracts - ) 1 Other contracts - - ) ) ) ) ) ) 1 Amount available for offset includes $33 million of cash collateral. The following table summarizes the maturity and notional principal or quantity outstanding related to the Company’s derivative instruments. June 30, 2015 Thereafter Foreign exchange contracts - United States dollar forwards - purchase (millions of United States dollars) Foreign exchange contracts - United States dollar forwards - sell (millions of United States dollars) Foreign exchange contracts - Euro forwards - purchase (millions of Euros) - - - - - - Interest rate contracts - short-term borrowings (millions of Canadian dollars) Interest rate contracts - long-term debt (millions of Canadian dollars) - - Equity contracts (millions of Canadian dollars) - - - Commodity contracts - natural gas (billions of cubic feet) ) ) ) - Commodity contracts - crude oil (millions of barrels) ) ) ) ) - - Commodity contracts - NGL (millions of barrels) ) ) - - - - Commodity contracts - power (megawatt hours (MWH)) ) December 31, 2014 Thereafter Foreign exchange contracts - United States dollar forwards - purchase (millions of United States dollars) Foreign exchange contracts - United States dollar forwards - sell (millions of United States dollars) Foreign exchange contracts - Euro forwards - purchase (millions of Euros) - - - - - Interest rate contracts - short-term borrowings (millions of Canadian dollars) Interest rate contracts - long-term debt (millions of Canadian dollars) - - Equity contracts (millions of Canadian dollars) - - - - Commodity contracts - natural gas (billions of cubic feet) ) ) ) ) - - Commodity contracts - crude oil (millions of barrels) ) ) ) - - Commodity contracts - NGL (millions of barrels) ) - - - - - Commodity contracts - power (MWH) - The Effect of Derivative Instruments on the Statements of Earnings and Comprehensive Income The following table presents the effect of cash flow hedges and net investment hedges on the Company’s consolidated earnings and consolidated comprehensive income, before the effect of income taxes. Three months ended June 30, Six months ended June 30, (millions of Canadian dollars) Amount of unrealized gains/(loss) recognized in OCI Cash flow hedges Foreign exchange contracts ) ) ) Interest rate contracts ) ) ) Commodity contracts ) ) ) ) Other contracts ) ) Net investment hedges Foreign exchange contracts ) ) ) ) ) Amount of gains/(loss) reclassified from AOCI to earnings (effective portion) Foreign exchange contracts 1 Interest rate contracts 2 Commodity contracts 3 ) ) Other contracts 4 ) ) Amount of gains/(loss) reclassified from AOCI to earnings (ineffective portion and amount excluded from effectiveness testing) Interest rate contracts 2 ) ) Commodity contracts 3 - ) ) 1 Reported within Other income/(expense) in the Consolidated Statements of Earnings. 2 Reported as an increase/(decrease) within Interest expense in the Consolidated Statements of Earnings. 3 Reported within Commodity costs and Other income/(expense) in the Consolidated Statements of Earnings. 4 Reported within Operating and administrative expense in the Consolidated Statements of Earnings. The Company estimates that $74 million of AOCI related to cash flow hedges will be reclassified to earnings in the next 12 months. Actual amounts reclassified to earnings depend on the foreign exchange rates, interest rates and commodity prices in effect when derivative contracts that are currently outstanding mature. For all forecasted transactions, the maximum term over which the Company is hedging exposures to the variability of cash flows is 42 months at June 30, 2015. Non-Qualifying Derivatives The following table presents the unrealized gains and losses associated with changes in the fair value of the Company’s non-qualifying derivatives. Three months ended June 30, Six months ended June 30, (millions of Canadian dollars) Foreign exchange contracts 1 ) Interest rate contracts 2 - - Commodity contracts 3 ) ) Other contracts 4 ) Total unrealized derivative fair value gains/(loss) ) 1 Reported within Transportation and other services revenues (2015 - $571 million loss; 2014 - $56 million gain) and Other income/(expense) (2015 - $334 million loss; 2014 - $2 million gain) in the Consolidated Statements of Earnings. 2 Reported as an (increase)/decrease to Interest expense in the Consolidated Statements of Earnings. 3 Reported within Transportation and other services revenues (2015 - $5 million gain; 2014 - $305 million gain), Commodity sales revenue (2015 - $357 million loss; 2014 - nil), Commodity costs (2015 - $118 million gain; 2014 - $1 million loss) and Operating and administrative expense (2015 - $7 million gain; 2014 - $3 million loss) in the Consolidated Statements of Earnings. 4 Reported within Operating and administrative expense in the Consolidated Statements of Earnings. LIQUIDITY RISK Liquidity risk is the risk the Company will not be able to meet its financial obligations, including commitments and guarantees, as they become due. In order to manage this risk, the Company forecasts cash requirements over a 12 month rolling time period to determine whether sufficient funds will be available. The Company’s primary sources of liquidity and capital resources are funds generated from operations, the issuance of commercial paper and draws under committed credit facilities and long-term debt, which includes debentures and medium-term notes. The Company maintains current shelf prospectuses with securities regulators, which enables, subject to market conditions, ready access to either the Canadian or United States public capital markets. The Company, through committed credit facilities with a diversified group of banks and institutions, targets to maintain sufficient liquidity to enable it to fund all anticipated requirements for approximately one year without accessing the capital markets. The Company is in compliance with all the terms and conditions of its committed credit facilities as at June 30, 2015. As a result, all credit facilities are available to the Company and the banks are obligated to fund and have been funding the Company under the terms of the facilities. CREDIT RISK Entering into derivative financial instruments may result in exposure to credit risk. Credit risk arises from the possibility that a counterparty will default on its contractual obligations. In order to mitigate this risk, the Company enters into risk management transactions primarily with institutions that possess investment grade credit ratings. Credit risk relating to derivative counterparties is mitigated by credit exposure limits and contractual requirements, frequent assessment of counterparty credit ratings and netting arrangements. The Company had group credit concentrations and maximum credit exposure, with respect to derivative instruments, in the following counterparty segments: June 30, 2015 December 31, 2014 (millions of Canadian dollars) Canadian financial institutions United States financial institutions European financial institutions Other 1 1 Other is comprised of commodity clearing house and physical natural gas and crude oil counterparties. As at June 30, 2015, the Company had provided letters of credit totalling $395 million in lieu of providing cash collateral to its counterparties pursuant to the terms of the relevant ISDA agreements. The Company held $14 million of cash collateral on derivative asset exposures as at June 30, 2015 and $33 million of cash collateral at December 31, 2014. Gross derivative balances have been presented without the effects of collateral posted. Derivative assets are adjusted for non-performance risk of the Company’s counterparties using their credit default swap spread rates, and are reflected in the fair value. For derivative liabilities, the Company’s non-performance risk is considered in the valuation. Credit risk also arises from trade and other long-term receivables, and is mitigated through credit exposure limits and contractual requirements, assessment of credit ratings and netting arrangements. Within Gas Distribution, credit risk is mitigated by the large and diversified customer base and the ability to recover an estimate for doubtful accounts through the ratemaking process. The Company actively monitors the financial strength of large industrial customers and, in select cases, has obtained additional security to minimize the risk of default on receivables. Generally, the Company classifies and provides for receivables older than 30 days as past due. The maximum exposure to credit risk related to non-derivative financial assets is their carrying value. FAIR VALUE MEASUREMENTS The Company’s financial assets and liabilities measured at fair value on a recurring basis include derivative instruments. The Company also discloses the fair value of other financial instruments not measured at fair value. The fair value of financial instruments reflects the Company’s best estimates of market value based on generally accepted valuation techniques or models and are supported by observable market prices and rates. When such values are not available, the Company uses discounted cash flow analysis from applicable yield curves based on observable market inputs to estimate fair value. FAIR VALUE OF FINANCIAL INSTRUMENTS The Company categorizes its derivative instruments measured at fair value into one of three different levels depending on the observability of the inputs employed in the measurement. Level 1 Level 1 includes derivatives measured at fair value based on unadjusted quoted prices for identical assets and liabilities in active markets that are accessible at the measurement date. An active market for a derivative is considered to be a market where transactions occur with sufficient frequency and volume to provide pricing information on an ongoing basis. The Company’s Level 1 instruments consist primarily of exchange-traded derivatives used to mitigate the risk of crude oil price fluctuations. Level 2 Level 2 includes derivative valuations determined using directly or indirectly observable inputs other than quoted prices included within Level 1. Derivatives in this category are valued using models or other industry standard valuation techniques derived from observable market data. Such valuation techniques include inputs such as quoted forward prices, time value, volatility factors and broker quotes that can be observed or corroborated in the market for the entire duration of the derivative. Derivatives valued using Level 2 inputs include non-exchange traded derivatives such as over-the-counter foreign exchange forward and cross currency swap contracts, interest rate swaps, physical forward commodity contracts, as well as commodity swaps and options for which observable inputs can be obtained. The Company has also categorized the fair value of its held to maturity preferred share investment and long-term debt as Level 2. The fair value of the Company’s held to maturity preferred share investment is primarily based on the yield of certain Government of Canada bonds. The fair value of the Company’s long-term debt is based on quoted market prices for instruments of similar yield, credit risk and tenor. Level 3 Level 3 includes derivative valuations based on inputs which are less observable, unavailable or where the observable data does not support a significant portion of the derivatives’ fair value. Generally, Level 3 derivatives are longer dated transactions, occur in less active markets, occur at locations where pricing information is not available or have no binding broker quote to support Level 2 classification. The Company has developed methodologies, benchmarked against industry standards, to determine fair value for these derivatives based on extrapolation of observable future prices and rates. Derivatives valued using Level 3 inputs primarily include long-dated derivative power contracts and NGL and natural gas contracts, basis swaps, commodity swaps, power and energy swaps, as well as options. The Company does not have any other financial instruments categorized in Level 3. The Company uses the most observable inputs available to estimate the fair value of its derivatives. When possible, the Company estimates the fair value of its derivatives based on quoted market prices. If quoted market prices are not available, the Company uses estimates from third party brokers. For non-exchange traded derivatives classified in Levels 2 and 3, the Company uses standard valuation techniques to calculate the estimated fair value. These methods include discounted cash flows for forwards and swaps and Black-Scholes-Merton pricing models for options. Depending on the type of derivative and nature of the underlying risk, the Company uses observable market prices (interest, foreign exchange, commodity and share price) and volatility as primary inputs to these valuation techniques. Finally, the Company considers its own credit default swap spread as well as the credit default swap spreads associated with its counterparties in its estimation of fair value. The Company has categorized its derivative assets and liabilities measured at fair value as follows: June 30, 2015 Level 1 Level 2 Level 3 Total Gross Derivative Instruments (millions of Canadian dollars) Financial assets Current derivative assets Foreign exchange contracts - - Interest rate contracts - - Commodity contracts Other contracts - - Long-term derivative assets Foreign exchange contracts - - Interest rate contracts - - Commodity contracts - Other contracts - - - Financial liabilities Current derivative liabilities Foreign exchange contracts - ) - ) Interest rate contracts - ) - ) Commodity contracts ) ) ) ) ) ) ) ) Long-term derivative liabilities Foreign exchange contracts - ) - ) Interest rate contracts - ) - ) Commodity contracts - ) ) ) Other contracts - ) - ) - ) ) ) Total net financial asset/(liability) Foreign exchange contracts - ) - ) Interest rate contracts - ) - ) Commodity contracts - ) ) ) Other contracts - - - ) ) ) December 31, 2014 Level 1 Level 2 Level 3 Total Gross Derivative Instruments (millions of Canadian dollars) Financial assets Current derivative assets Foreign exchange contracts - - Interest rate contracts - - Commodity contracts Other contracts - - Long-term derivative assets Foreign exchange contracts - - Interest rate contracts - - Commodity contracts - Other contracts - - - Financial liabilities Current derivative liabilities Foreign exchange contracts - ) - ) Interest rate contracts - ) - ) Commodity contracts ) ) ) ) ) ) ) ) Long-term derivative liabilities Foreign exchange contracts - ) - ) Interest rate contracts - ) - ) Commodity contracts - ) ) ) - ) ) ) Total net financial asset/(liability) Foreign exchange contracts - ) - ) Interest rate contracts - ) - ) Commodity contracts ) Other contracts - - ) ) The significant unobservable inputs used in the fair value measurement of Level 3 derivative instruments were as follows: June 30, 2015 Fair Value Unobservable Input Minimum Price Maximum Price Weighted Average Price Unit of Measurement (fair value in millions of Canadian dollars) Commodity contracts - financial 1 Natural gas ) Forward gas price $/mmbtu 3 Crude ) Forward crude price $/barrel NGL Forward NGL price $/gallon Power ) Forward power price $/MWH Commodity contracts - physical 1 Natural gas ) Forward gas price $/mmbtu 3 Crude ) Forward crude price $/barrel NGL Forward NGL price $/gallon Commodity options 2 Crude Option volatility NGL Option volatility ) 1 Financial and physical forward commodity contracts are valued using a market approach valuation technique. 2 Commodity options contracts are valued using an option model valuation technique. 3 One million British thermal units (mmbtu). If adjusted, the significant unobservable inputs disclosed in the table above would have a direct impact on the fair value of the Company’s Level 3 derivative instruments. The significant unobservable inputs used in the fair value measurement of Level 3 derivative instruments include forward commodity prices and, for option contracts, price volatility. Changes in forward commodity prices could result in significantly different fair values for the Company’s Level 3 derivatives. Changes in price volatility would change the value of the option contracts. Generally speaking, a change in the estimate of forward commodity prices is unrelated to a change in the estimate of price volatility. Changes in net fair value of derivative assets and liabilities classified as Level 3 in the fair value hierarchy were as follows: Six months ended June 30, (millions of Canadian dollars) Level 3 net derivative asset/(liability) at beginning of period ) Total gains/(loss) Included in earnings 1 ) ) Included in OCI ) - Settlements ) Level 3 net derivative liability at end of period ) ) 1 Reported within Transportation and other services revenues, Commodity costs and Operating and administrative expense in the Consolidated Statements of Earnings. The Company’s policy is to recognize transfers as of the last day of the reporting period. There were no transfers between levels as at June 30, 2015 or 2014. FAIR VALUE OF OTHER FINANCIAL INSTRUMENTS The Company recognizes equity investments in other entities not categorized as held to maturity at fair value, with changes in fair value recorded in OCI, unless actively quoted prices are not available for fair value measurement in which case these investments are recorded at cost. The carrying value of all equity investments recognized at cost totalled $121 million as at June 30, 2015 (December 31, 2014 - $99 million). The Company has restricted investments held in trust totalling $22 million as at June 30, 2015 (December 31, 2014 - nil). The Company has a held to maturity preferred share investment carried at its amortized cost of $ 350 million as at June 30, 2015 (December 31, 2014 - $323 million). These preferred shares are entitled to a cumulative preferred dividend based on the average yield of Government of Canada bonds maturing in greater than 10 years plus a range of 4.3% to 4.4%. As at June 30, 2015, the fair value of this preferred share investment approximates its face value of $580 million (December 31, 2014 - $580 million). As at June 30, 2015, the Company’s long-term debt had a carrying value of $ 37,373 million (December 31, 2014 - $34,427 million) and a fair value of $38,484 million (December 31, 2014 - $36,637 million). NET INVESTMENT HEDGES The Company has designated a portion of its United States dollar denominated debt, as well as a portfolio of foreign exchange forward contracts, as a hedge of its net investment in United States dollar denominated investments and subsidiaries. During the six months ended June 30, 2015, the Company recognized an unrealized foreign exchange loss on the translation of United States dollar denominated debt of $279 million (2014 - unrealized gain of $9 million) and an unrealized loss on the change in fair value of its outstanding foreign exchange forward contracts of $97 million (2014 - unrealized loss of $4 million) in OCI. The Company also recognized a realized gain of $7 million (2014 - realized gain of $5 million) in OCI associated with the settlement of foreign exchange forward contracts that had matured during the period. There was no ineffectiveness during the six months ended June 30, 2015 (2014 - nil). |
INCOME TAXES
INCOME TAXES | 6 Months Ended |
Jun. 30, 2015 | |
INCOME TAXES | |
INCOME TAXES | 12. INCOME TAXES The effective income tax rates for the three and six months ended June 30, 2015 were 35.4% and a recovery of 35.6%, respectively (2014 - 24.9% and 23.5%, respectively). The period-over-period change in the effective tax rate is primarily attributable to rate-regulated tax benefit and other permanent items relative to lower earnings in the first six months of 2015 as compared with the corresponding 2014 period, offset by a $39 million tax expense arising from an intercompany transfer of a partnership interest during the second quarter of 2015. The effective income tax rate for the six months ended June 30, 2015 was further impacted by an out-of-period adjustment recorded in the first quarter of 2015 (Note 3) . |
RETIREMENT AND POSTRETIREMENT B
RETIREMENT AND POSTRETIREMENT BENEFITS | 6 Months Ended |
Jun. 30, 2015 | |
RETIREMENT AND POSTRETIREMENT BENEFITS | |
RETIREMENT AND POSTRETIREMENT BENEFITS | 13. RETIREMENT AND POSTRETIREMENT BENEFITS The Company has three registered pension plans which provide either defined benefit or defined contribution pension benefits, or both, to employees of the Company. The Liquids Pipelines and Gas Distribution pension plans provide Company funded defined benefit pension and/or defined contribution benefits to Canadian employees of Enbridge. The Enbridge United States pension plan provides Company funded defined benefit pension benefits for United States based employees. The Company has four supplemental pension plans which provide pension benefits in excess of the basic plans for certain employees. The Company also provides OPEB, which primarily include supplemental health and dental, health spending account and life insurance coverage, for qualifying retired employees. NET BENEFIT COSTS RECOGNIZED Three months ended June 30, Six months ended June 30, (millions of Canadian dollars) Benefits earned during the period Interest cost on projected benefit obligations Expected return on plan assets ) ) ) ) Amortization of prior service costs Amortization of actuarial loss Net benefit costs on an accrual basis 1,2 1 Included in net benefit costs for the three and six months ended June 30, 2015 are costs related to OPEB of $4 million and $7 million (2014 - $4 million and $8 million). 2 For the three and six months ended June 30, 2015, offsetting regulatory liabilities of nil (2014 - $1 million and $3 million regulatory liabilities) have been recorded to the extent pension and OPEB costs are expected to be refunded to or collected from customers in future rates. |
CONTINGENCIES
CONTINGENCIES | 6 Months Ended |
Jun. 30, 2015 | |
CONTINGENCIES | |
CONTINGENCIES | 14. CONTINGENCIES ENBRIDGE ENERGY PARTNERS, L.P. Enbridge holds an approximate 35.9% combined direct and indirect economic interest in EEP, which is consolidated with noncontrolling interests within the Sponsored Investments segment. Lakehead System Lines 6A and 6B Crude Oil Releases Line 6B Crude Oil Release On July 26, 2010, a release of crude oil on Line 6B of EEP’s Lakehead System was reported near Marshall, Michigan. EEP estimates that approximately 20,000 barrels of crude oil were leaked at the site, a portion of which reached the Talmadge Creek, a waterway that feeds the Kalamazoo River. The released crude oil affected approximately 61 kilometres (38 miles) of shoreline along the Talmadge Creek and Kalamazoo River waterways, including residential areas, businesses, farmland and marshland between Marshall and downstream of Battle Creek, Michigan. EEP continues to perform necessary remediation, restoration and monitoring of the areas affected by the Line 6B crude oil release. All the initiatives EEP is undertaking in the monitoring and restoration phase are intended to restore the crude oil release area to the satisfaction of the appropriate regulatory authorities. On March 14, 2013, EEP received an order from the EPA (the Order) which required additional containment and active recovery of submerged oil relating to the Line 6B crude oil release. In February 2015, the EPA acknowledged the completion of the Order. In November of 2014, regulatory authority was transferred from the EPA to the Michigan Department of Environmental Quality (MDEQ). The MDEQ has oversight over the submerged oil reassessment, sheen management and sediment trap monitoring and maintenance activities through a Kalamazoo River Residual Oil Monitoring and Maintenance Work Plan. In May 2015, EEP reached a settlement with the MDEQ and the Michigan Attorney General’s offices regarding the Line 6B crude oil release. As stipulated in the settlement, EEP agreed to: (1) provide at least 300 acres of wetland through restoration, creation, or banked wetland credits, to remain as wetland in perpetuity; (2) pay US$5 million as mitigation for impacts to the banks, bottomlands and flow of Talmadge Creek and the Kalamazoo River for the purpose of enhancing the Kalamazoo River watershed and restoring stream flows in the river; (3) continue to reimburse the State of Michigan for costs arising from oversight of EEP activities since the release; and (4) continue monitoring, restoration and invasive species control within state-regulated wetlands affected by the release and associated response activities. The timing of these activities is based upon the work plans approved by the State of Michigan. Through June 30, 2015, EEP has reimbursed the State of Michigan more than US$12 million in costs. As of June 30, 2015, EEP’s total cost estimate for the Line 6B crude oil release remains at US$1.2 billion ($193 million after-tax attributable to Enbridge). Expected losses associated with the Line 6B crude oil release included those costs that were considered probable and that could be reasonably estimated at June 30, 2015. Despite the efforts EEP has made to ensure the reasonableness of its estimates, there continues to be the potential for EEP to incur additional costs in connection with this crude oil release due to variations in any or all of the cost categories, including modified or revised requirements from regulatory agencies, in addition to fines and penalties and expenditures associated with litigation and settlement of claims. Line 6A Crude Oil Release On September 9, 2010, a crude oil release occurred on Line 6A in Romeoville, Illinois, caused by a third party water pipeline failure which damaged EEP’s pipeline. One claim related to the Line 6A crude oil release has been filed against Enbridge, EEP or their affiliates by the State of Illinois in the Illinois state court in connection with this crude oil release. On February 20, 2015, Enbridge, EEP and their affiliates agreed to a consent order releasing the parties from any claims, liability or penalties. Insurance EEP is included in the comprehensive insurance program that is maintained by Enbridge for its subsidiaries and affiliates which renews throughout the year. On May 1 of each year, the insurance program is up for renewal and includes commercial liability insurance coverage that is consistent with coverage considered customary for its industry and includes coverage for environmental incidents excluding costs for fines and penalties. A majority of the costs incurred in connection with the crude oil release for Line 6B are covered by Enbridge’s comprehensive insurance policy that expired on April 30, 2011, which had an aggregate limit of US$650 million for pollution liability for Enbridge and its affiliates. Including EEP’s remediation spending through June 30, 2015, costs related to Line 6B exceeded the limits of the coverage available under this insurance policy. Additionally, fines and penalties would not be covered under the existing insurance policy. As at June 30, 2015, EEP has recorded total insurance recoveries of US$547 million ($80 million after-tax attributable to Enbridge) for the Line 6B crude oil release out of the US$650 million aggregate limit. EEP will record receivables for additional amounts it claims for recovery pursuant to its insurance policies during the period it deems recovery to be probable. In March 2013, EEP and Enbridge filed a lawsuit against the insurer who is disputing recovery eligibility for Line 6B costs. In March 2015, Enbridge reached an agreement with that insurer to submit the claim to binding arbitration, which is not scheduled to occur until the fourth quarter of 2016. While the Company believes that those costs are eligible for recovery, there can be no assurance that it will prevail in the arbitration. Enbridge renewed its comprehensive property and liability insurance programs, which are effective May 1, 2015 through April 30, 2016 with a liability program aggregate limit of US$860 million, which includes sudden and accidental pollution liability. In the unlikely event that multiple insurable incidents which in aggregate exceed coverage limits occur within the same insurance period, the total insurance coverage will be allocated among Enbridge entities on an equitable basis based on an insurance allocation agreement among Enbridge and its subsidiaries. Legal and Regulatory Proceedings A number of United States governmental agencies and regulators have initiated investigations into the Line 6B crude oil release. Approximately five actions or claims are pending against Enbridge, EEP or their affiliates in United States federal and state courts in connection with the Line 6B crude oil release, including direct actions and actions seeking class status. Based on the current status of these cases, the Company does not expect the outcome of these actions to be material to the Company’s results of operations or financial condition. As at June 30, 2015, included in EEP’s estimated costs related to the Line 6B crude oil release is US$48 million in fines and penalties. Of this amount, US$40 million related to civil penalties under the Clean Water Act of the United States. While no final fine or penalty has been assessed or agreed to date, EEP believes that, based on the best information available at this time, the US$40 million represents an estimate of the minimum amount which may be assessed, excluding costs of injunctive relief that may be agreed to with the relevant governmental agencies. Given the complexity of settlement negotiations, which EEP expects will continue, and the limited information available to assess the matter, EEP is unable to reasonably estimate the final penalty which might be incurred or to reasonably estimate a range of outcomes at this time. Injunctive relief is likely to include further measures directed toward enhancing spill prevention, leak detection and emergency response to environmental events. The cost of compliance with such measures, when combined with any fine or penalty, could be material. EEP has entered into a tolling agreement with the applicable governmental agencies and discussions with these governmental agencies regarding fines, penalties and injunctive relief are ongoing. In June 2015, EEP reached a separate agreement with the United States of America (Federal Natural Resources Damages Trustees), State of Michigan (State of Michigan Natural Resources Damages Trustees), Match-E-Be-Nash-She-Wish Band of the Potawatomi Indians and the Nottawaseppi Huron Band of the Potawatomi Indians to pay approximately US$3.9 million that EEP had accrued to cover a variety of projects, including the restoration of 175 acres of oak savanna in Fort Custer State Recreation Area and wild rice beds along the Kalamazoo River. TAX MATTERS Enbridge and its subsidiaries maintain tax liabilities related to uncertain tax positions. While fully supportable in the Company’s view, these tax positions, if challenged by tax authorities, may not be fully sustained on review. OTHER LITIGATION The Company and its subsidiaries are subject to various other legal and regulatory actions and proceedings which arise in the normal course of business, including interventions in regulatory proceedings and challenges to regulatory approvals and permits by special interest groups. While the final outcome of such actions and proceedings cannot be predicted with certainty, Management believes that the resolution of such actions and proceedings will not have a material impact on the Company’s consolidated financial position or results of operations. |
SIGNIFICANT ACCOUNTING POLICI22
SIGNIFICANT ACCOUNTING POLICIES (Policies) | 6 Months Ended |
Jun. 30, 2015 | |
SIGNIFICANT ACCOUNTING POLICIES | |
ADOPTION OF NEW STANDARDS | ADOPTION OF NEW STANDARDS Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity Effective January 1, 2015, the Company prospectively adopted Accounting Standards Update (ASU) 2014-08 which changes the criteria and disclosures for reporting discontinued operations. The revised criteria will in general, result in fewer transactions being categorized as discontinued operations. There was no material impact to the consolidated financial statements as a result of adopting this update. Extraordinary and Unusual Items Effective January 1, 2015, the Company prospectively adopted ASU 2015-01, which eliminates the concept of extraordinary items from U.S. GAAP. Entities will no longer be required to separately classify and present extraordinary items in the income statement. There was no material impact to the Company’s consolidated financial statements as a result of adopting this update. |
FUTURE ACCOUNTING POLICY CHANGES | FUTURE ACCOUNTING POLICY CHANGES Measurement Date of Defined Benefit Obligation and Plan Assets ASU 2015-04 was issued in April 2015 with the intent to simplify the fair value measurement of defined benefit plan assets and obligations. For entities with a fiscal year end that does not coincide with a month end, the new standard permits an entity to measure its defined benefit plan assets and obligations using the month end that is closest to the entity’s fiscal year end. In addition, where there are significant events in an interim period that would trigger a re-measurement of the plan assets and obligations, an entity is also permitted to re-measure such assets and obligations using the month end that is closest to the date of the significant event. The accounting update is effective for financial statements issued for fiscal years beginning after December 15, 2015 and is to be applied on a prospective basis. The adoption of the pronouncement is not anticipated to have a material impact on the Company’s consolidated financial statements. Simplifying the Presentation of Debt Issuance Costs ASU 2015-03 was issued in April 2015 with the intent to simplify the presentation of debt issuance costs. The new standard requires a debt issuance cost related to a recognized debt liability to be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, as consistent with the presentation of debt discounts or premiums. This accounting update is effective for financial statements issued for fiscal years beginning after December 15, 2015 on a retrospective basis. The adoption of the pronouncement is not anticipated to have a material impact on the Company’s consolidated financial statements. Amendments to the Consolidation Analysis ASU 2015-02, issued in February 2015, revises the current consolidation guidance which results in a change in the determination of whether an entity consolidates certain types of legal entities. The Company is currently assessing the impact of the new standard on its consolidated financial statements. The new standard is effective for annual and interim reporting periods beginning after December 15, 2015 and may be applied on a full or modified retrospective basis. Revenue from Contracts with Customers ASU 2014-09 was issued in May 2014 with the intent of significantly enhancing comparability of revenue recognition practices across entities and industries. The new standard provides a single principles-based, five-step model to be applied to all contracts with customers and introduces new, increased disclosure requirements. The Company is currently assessing the impact of the new standard on its consolidated financial statements. In July 2015, the effective date of the new standard was delayed by one year and the new standard is now effective for annual and interim periods beginning on or after December 15, 2017 and may be applied on either a full or modified retrospective basis. |
SEGMENTED INFORMATION (Tables)
SEGMENTED INFORMATION (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
SEGMENTED INFORMATION | |
Schedule of reporting information by segment | Gas Pipelines, Processing Liquids Gas and Energy Sponsored Three months ended June 30, 2015 Pipelines Distribution Services Investments Corporate 1 Consolidated (millions of Canadian dollars) Revenues - Commodity and gas distribution costs ) ) ) ) - ) Operating and administrative ) ) ) ) ) ) Depreciation and amortization ) ) ) ) ) ) Environmental costs, net of recoveries ) - - - ) Goodwill impairment - - - ) - ) ) ) Income/(loss) from equity investments - ) ) Other income/(expense) ) ) Interest income/(expense) ) ) ) ) ) Income taxes expense ) ) ) ) ) ) Earnings/(loss) ) Loss attributable to noncontrolling interests and redeemable noncontrolling interests - - - Preference share dividends - - - - ) ) Earnings/(loss) attributable to Enbridge Inc. common shareholders ) Additions to property, plant and equipment 2 Three months ended June 30, 2014 Liquids Pipelines Gas Distribution Gas Pipelines, Processing and Energy Services Sponsored Investments Corporate 1 Consolidated (millions of Canadian dollars) Revenues - Commodity and gas distribution costs - ) ) ) - ) Operating and administrative ) ) ) ) ) ) Depreciation and amortization ) ) ) ) ) ) Environmental costs, net of recoveries - - ) - ) ) Income/(loss) from equity investments - ) Other income/(expense) ) ) Interest income/(expense) ) ) ) ) ) Income taxes expense ) ) ) ) ) ) Earnings Earnings attributable to noncontrolling interests and redeemable noncontrolling interests ) - - ) - ) Preference share dividends - - - - ) ) Earnings attributable to Enbridge Inc. common shareholders Additions to property, plant and equipment 2 Six months ended June 30, 2015 Liquids Pipelines Gas Distribution Gas Pipelines, Processing and Energy Services Sponsored Investments Corporate 1 Consolidated (millions of Canadian dollars) Revenues - Commodity and gas distribution costs ) ) ) ) ) ) Operating and administrative ) ) ) ) ) ) Depreciation and amortization ) ) ) ) ) ) Environmental costs, net of recoveries - - - - Goodwill impairment - - - ) - ) ) Income/(loss) from equity investments - ) Other income/(expense) ) ) ) ) ) Interest income/(expense) ) ) ) ) ) Income taxes recovery/(expense) ) ) ) Earnings/(loss) ) ) (Earnings)/loss attributable to noncontrolling interests and redeemable noncontrolling interests ) - - Preference share dividends - - - - ) ) Earnings/(loss) attributable to Enbridge Inc. common shareholders ) ) Additions to property, plant and equipment 2 Six months ended June 30, 2014 Liquids Pipelines Gas Distribution Gas Pipelines, Processing and Energy Services Sponsored Investments Corporate 1 Consolidated (millions of Canadian dollars) Revenues - Commodity and gas distribution costs - ) ) ) - ) Operating and administrative ) ) ) ) ) ) Depreciation and amortization ) ) ) ) ) ) Environmental costs, net of recoveries - - ) - ) ) Income/(loss) from equity investments - ) Other income/(expense) ) Interest income/(expense) ) ) ) ) ) Income taxes recovery/(expense) ) ) ) ) ) Earnings from continuing operations Discontinued operations Earnings from discontinued operations before income tax - - - - Income taxes from discontinued operations - - ) - - ) Earnings from discontinued operations - - - - Earnings Earnings attributable to noncontrolling interests and redeemable noncontrolling interests ) - - ) - ) Preference share dividends - - - - ) ) Earnings attributable to Enbridge Inc. common shareholders Additions to property, plant and equipment 2 1 Included within the Corporate segment was Interest income of $226 million and $422 million for the three and six months ended June 30, 2015, respectively, (2014 - $161 million and $316 million, respectively) charged to other operating segments. 2 Includes allowance for equity funds used during construction. |
Schedule of total assets by segment | June 30, 2015 December 31, 2014 (millions of Canadian dollars) Liquids Pipelines Gas Distribution Gas Pipelines, Processing and Energy Services Sponsored Investments Corporate |
DEBT (Tables)
DEBT (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
DEBT | |
Schedule of committed credit facilities | June 30, 2015 December 31, 2014 Maturity Dates Total Facilities Draws 1 Available Total Facilities (millions of Canadian dollars) Liquids Pipelines - Gas Distribution 2016-2019 Sponsored Investments 2016-2019 Corporate 2016-2019 Total committed credit facilities 1 Includes facility draws, letters of credit and commercial paper issuances that are back-stopped by the credit facility. |
EARNINGS PER COMMON SHARE (Tabl
EARNINGS PER COMMON SHARE (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
EARNINGS PER COMMON SHARE | |
Schedule of weighted average shares outstanding basic and diluted used for calculating earnings per common share | Three months ended June 30, Six months ended June 30, (number of shares in millions) Weighted average shares outstanding Effect of dilutive options Diluted weighted average shares outstanding |
COMPONENTS OF ACCUMULATED OTH26
COMPONENTS OF ACCUMULATED OTHER COMPREHENSIVE INCOME/(LOSS) (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
COMPONENTS OF ACCUMULATED OTHER COMPREHENSIVE INCOME/(LOSS) | |
Schedule of changes in accumulated other comprehensive loss (AOCI) attributable to the entity's common shareholders | Cash Flow Hedges Net Investment Hedges Cumulative Translation Adjustment Equity Investees Pension and OPEB Amortization Adjustment Total (millions of Canadian dollars) Balance at January 1, 2015 ) ) ) ) Other comprehensive income/(loss) retained in AOCI ) ) - Other comprehensive gains/(loss) reclassified to earnings Interest rate contracts 1 - - - - Commodity contracts 2 ) - - - - ) Foreign exchange contracts 3 - - - - Other contracts 4 - - - - Amortization of pension and OPEB actuarial loss 5 - - - - ) ) Tax impact Income tax on amounts retained in AOCI - ) - Income tax on amounts reclassified to earnings ) - - - ) ) - ) ) Balance at June 30, 2015 ) ) ) Cash Flow Hedges Net Investment Hedges Cumulative Translation Adjustment Equity Investees Pension and OPEB Amortization Adjustment Total (millions of Canadian dollars) Balance at January 1, 2014 ) ) ) ) ) Other comprehensive income/(loss) retained in AOCI ) ) - ) Other comprehensive gains reclassified to earnings Interest rate contracts 1 - - - - Commodity contracts 2 - - - - Foreign exchange contracts 3 - - - - Other contracts 4 - - - - Amortization of pension and OPEB actuarial loss 5 - - - - ) ) ) Tax impact Income tax on amounts retained in AOCI ) - - - Income tax on amounts reclassified to earnings ) - - - ) ) ) - - ) Balance at June 30, 2014 ) ) ) ) ) 1 Reported within Interest expense in the Consolidated Statements of Earnings. 2 Reported within Commodity sales and Commodity costs in the Consolidated Statements of Earnings. 3 Reported within Other income/(expense) in the Consolidated Statements of Earnings. 4 Reported within Operating and administrative expense in the Consolidated Statements of Earnings. 5 These components are included in the computation of net periodic pension costs and are reported within Operating and administrative expense in the Consolidated Statements of Earnings. |
RISK MANAGEMENT AND FINANCIAL27
RISK MANAGEMENT AND FINANCIAL INSTRUMENTS (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
RISK MANAGEMENT AND FINANCIAL INSTRUMENTS | |
Schedule of the consolidated statements of financial position location and carrying value of the Company's derivative instruments | June 30, 2015 Derivative Instruments Used as Cash Flow Hedges Derivative Instruments Used as Net Investment Hedges Non- Qualifying Derivative Instruments Total Gross Derivative Instruments as Presented Amounts Available for Offset Total Net Derivative Instruments (millions of Canadian dollars) Accounts receivable and other Foreign exchange contracts ) Interest rate contracts - - ) - Commodity contracts - ) Other contracts - - ) Deferred amounts and other assets Foreign exchange contracts - ) - Interest rate contracts - - ) Commodity contracts - ) Other contracts - - ) Accounts payable and other Foreign exchange contracts - ) ) ) ) Interest rate contracts ) - - ) ) Commodity contracts - - ) ) ) ) ) ) ) ) Other long-term liabilities Foreign exchange contracts - ) ) ) ) Interest rate contracts ) - - ) ) Commodity contracts - - ) ) ) Other contracts ) - - ) - ) ) ) ) ) ) Total net derivative asset/(liability) Foreign exchange contracts ) ) ) - ) Interest rate contracts ) - - ) - ) Commodity contracts - ) ) ) 1 ) Other contracts - - ) ) ) ) ) ) 1 Amount available for offset includes $14 million of cash collateral. December 31, 2014 Derivative Instruments Used as Cash Flow Hedges Derivative Instruments Used as Net Investment Hedges Non-Qualifying Derivative Instruments Total Gross Derivative Instruments as Presented Amounts Available for Offset Total Net Derivative Instruments (millions of Canadian dollars) Accounts receivable and other Foreign exchange contracts ) - Interest rate contracts - - ) Commodity contracts - ) Other contracts - - ) Deferred amounts and other assets Foreign exchange contracts - ) - Interest rate contracts - - ) - Commodity contracts - ) Other contracts - - ) Accounts payable and other Foreign exchange contracts ) ) ) ) ) Interest rate contracts ) - - ) ) Commodity contracts - - ) ) ) ) ) ) ) ) Other long-term liabilities Foreign exchange contracts - ) ) ) ) Interest rate contracts ) - - ) ) Commodity contracts - - ) ) ) ) ) ) ) ) Total net derivative asset/(liability) Foreign exchange contracts ) ) ) - ) Interest rate contracts ) - - ) - ) Commodity contracts - ) 1 Other contracts - - ) ) ) ) ) ) 1 Amount available for offset includes $33 million of cash collateral. |
Schedule of the maturity and notional principal or quantity outstanding related to the Company's derivative instruments | June 30, 2015 Thereafter Foreign exchange contracts - United States dollar forwards - purchase (millions of United States dollars) Foreign exchange contracts - United States dollar forwards - sell (millions of United States dollars) Foreign exchange contracts - Euro forwards - purchase (millions of Euros) - - - - - - Interest rate contracts - short-term borrowings (millions of Canadian dollars) Interest rate contracts - long-term debt (millions of Canadian dollars) - - Equity contracts (millions of Canadian dollars) - - - Commodity contracts - natural gas (billions of cubic feet) ) ) ) - Commodity contracts - crude oil (millions of barrels) ) ) ) ) - - Commodity contracts - NGL (millions of barrels) ) ) - - - - Commodity contracts - power (megawatt hours (MWH)) ) December 31, 2014 Thereafter Foreign exchange contracts - United States dollar forwards - purchase (millions of United States dollars) Foreign exchange contracts - United States dollar forwards - sell (millions of United States dollars) Foreign exchange contracts - Euro forwards - purchase (millions of Euros) - - - - - Interest rate contracts - short-term borrowings (millions of Canadian dollars) Interest rate contracts - long-term debt (millions of Canadian dollars) - - Equity contracts (millions of Canadian dollars) - - - - Commodity contracts - natural gas (billions of cubic feet) ) ) ) ) - - Commodity contracts - crude oil (millions of barrels) ) ) ) - - Commodity contracts - NGL (millions of barrels) ) - - - - - Commodity contracts - power (MWH) - |
Schedule of effect of cash flow hedges and net investment hedges on the Company's consolidated earnings and consolidated comprehensive income, before the effect of income taxes | Three months ended June 30, Six months ended June 30, (millions of Canadian dollars) Amount of unrealized gains/(loss) recognized in OCI Cash flow hedges Foreign exchange contracts ) ) ) Interest rate contracts ) ) ) Commodity contracts ) ) ) ) Other contracts ) ) Net investment hedges Foreign exchange contracts ) ) ) ) ) Amount of gains/(loss) reclassified from AOCI to earnings (effective portion) Foreign exchange contracts 1 Interest rate contracts 2 Commodity contracts 3 ) ) Other contracts 4 ) ) Amount of gains/(loss) reclassified from AOCI to earnings (ineffective portion and amount excluded from effectiveness testing) Interest rate contracts 2 ) ) Commodity contracts 3 - ) ) 1 Reported within Other income/(expense) in the Consolidated Statements of Earnings. 2 Reported as an increase/(decrease) within Interest expense in the Consolidated Statements of Earnings. 3 Reported within Commodity costs and Other income/(expense) in the Consolidated Statements of Earnings. 4 Reported within Operating and administrative expense in the Consolidated Statements of Earnings. |
Schedule of unrealized gains and losses associated with changes in the fair value of the Company's non-qualifying derivatives | Three months ended June 30, Six months ended June 30, (millions of Canadian dollars) Foreign exchange contracts 1 ) Interest rate contracts 2 - - Commodity contracts 3 ) ) Other contracts 4 ) Total unrealized derivative fair value gains/(loss) ) 1 Reported within Transportation and other services revenues (2015 - $571 million loss; 2014 - $56 million gain) and Other income/(expense) (2015 - $334 million loss; 2014 - $2 million gain) in the Consolidated Statements of Earnings. 2 Reported as an (increase)/decrease to Interest expense in the Consolidated Statements of Earnings. 3 Reported within Transportation and other services revenues (2015 - $5 million gain; 2014 - $305 million gain), Commodity sales revenue (2015 - $357 million loss; 2014 - nil), Commodity costs (2015 - $118 million gain; 2014 - $1 million loss) and Operating and administrative expense (2015 - $7 million gain; 2014 - $3 million loss) in the Consolidated Statements of Earnings. 4 Reported within Operating and administrative expense in the Consolidated Statements of Earnings. |
Schedule of group credit concentrations and maximum credit exposure, with respect to derivative instruments | June 30, 2015 December 31, 2014 (millions of Canadian dollars) Canadian financial institutions United States financial institutions European financial institutions Other 1 1 Other is comprised of commodity clearing house and physical natural gas and crude oil counterparties. |
Schedule of derivative assets and liabilities measured at fair value | June 30, 2015 Level 1 Level 2 Level 3 Total Gross Derivative Instruments (millions of Canadian dollars) Financial assets Current derivative assets Foreign exchange contracts - - Interest rate contracts - - Commodity contracts Other contracts - - Long-term derivative assets Foreign exchange contracts - - Interest rate contracts - - Commodity contracts - Other contracts - - - Financial liabilities Current derivative liabilities Foreign exchange contracts - ) - ) Interest rate contracts - ) - ) Commodity contracts ) ) ) ) ) ) ) ) Long-term derivative liabilities Foreign exchange contracts - ) - ) Interest rate contracts - ) - ) Commodity contracts - ) ) ) Other contracts - ) - ) - ) ) ) Total net financial asset/(liability) Foreign exchange contracts - ) - ) Interest rate contracts - ) - ) Commodity contracts - ) ) ) Other contracts - - - ) ) ) December 31, 2014 Level 1 Level 2 Level 3 Total Gross Derivative Instruments (millions of Canadian dollars) Financial assets Current derivative assets Foreign exchange contracts - - Interest rate contracts - - Commodity contracts Other contracts - - Long-term derivative assets Foreign exchange contracts - - Interest rate contracts - - Commodity contracts - Other contracts - - - Financial liabilities Current derivative liabilities Foreign exchange contracts - ) - ) Interest rate contracts - ) - ) Commodity contracts ) ) ) ) ) ) ) ) Long-term derivative liabilities Foreign exchange contracts - ) - ) Interest rate contracts - ) - ) Commodity contracts - ) ) ) - ) ) ) Total net financial asset/(liability) Foreign exchange contracts - ) - ) Interest rate contracts - ) - ) Commodity contracts ) Other contracts - - ) ) |
Schedule of significant unobservable inputs used in the fair value measurement of Level 3 derivative instruments | June 30, 2015 Fair Value Unobservable Input Minimum Price Maximum Price Weighted Average Price Unit of Measurement (fair value in millions of Canadian dollars) Commodity contracts - financial 1 Natural gas ) Forward gas price $/mmbtu 3 Crude ) Forward crude price $/barrel NGL Forward NGL price $/gallon Power ) Forward power price $/MWH Commodity contracts - physical 1 Natural gas ) Forward gas price $/mmbtu 3 Crude ) Forward crude price $/barrel NGL Forward NGL price $/gallon Commodity options 2 Crude Option volatility NGL Option volatility ) 1 Financial and physical forward commodity contracts are valued using a market approach valuation technique. 2 Commodity options contracts are valued using an option model valuation technique. 3 One million British thermal units (mmbtu). |
Schedule of changes in net fair value of derivative assets and liabilities classified as Level 3 in the fair value hierarchy | Six months ended June 30, (millions of Canadian dollars) Level 3 net derivative asset/(liability) at beginning of period ) Total gains/(loss) Included in earnings 1 ) ) Included in OCI ) - Settlements ) Level 3 net derivative liability at end of period ) ) 1 Reported within Transportation and other services revenues, Commodity costs and Operating and administrative expense in the Consolidated Statements of Earnings. |
RETIREMENT AND POSTRETIREMENT28
RETIREMENT AND POSTRETIREMENT BENEFITS (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
RETIREMENT AND POSTRETIREMENT BENEFITS | |
Schedule of net benefit costs recognized | Three months ended June 30, Six months ended June 30, (millions of Canadian dollars) Benefits earned during the period Interest cost on projected benefit obligations Expected return on plan assets ) ) ) ) Amortization of prior service costs Amortization of actuarial loss Net benefit costs on an accrual basis 1,2 1 Included in net benefit costs for the three and six months ended June 30, 2015 are costs related to OPEB of $4 million and $7 million (2014 - $4 million and $8 million). 2 For the three and six months ended June 30, 2015, offsetting regulatory liabilities of nil (2014 - $1 million and $3 million regulatory liabilities) have been recorded to the extent pension and OPEB costs are expected to be refunded to or collected from customers in future rates. |
SEGMENTED INFORMATION (Details)
SEGMENTED INFORMATION (Details) - CAD CAD in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | Dec. 31, 2014 | |
Segmented Information | |||||
Revenues | CAD 8,631 | CAD 10,026 | CAD 16,560 | CAD 20,547 | |
Commodity and gas distribution costs | (6,099) | (7,723) | (12,505) | (16,302) | |
Operating and administrative | (928) | (814) | (1,919) | (1,559) | |
Depreciation and amortization | (485) | (393) | (959) | (759) | |
Environmental costs, net of recoveries | (7) | (36) | 4 | (41) | |
Goodwill impairment | (440) | (440) | |||
Total operating income | 672 | 1,060 | 741 | 1,886 | |
Income/(loss) from equity investments | 109 | 65 | 242 | 179 | |
Other income/(expense) | 158 | 215 | (299) | 77 | |
Interest income/(expense) | (284) | (231) | (535) | (469) | |
Income taxes recovery/(expense) | (232) | (276) | 53 | (393) | |
Earnings from continuing operations | 423 | 833 | 202 | 1,280 | |
Discontinued operations | |||||
Earnings from discontinued operations before income taxes | 73 | ||||
Income taxes from discontinued operations | (27) | ||||
Earnings from discontinued operations | 46 | ||||
Earnings | 423 | 833 | 202 | 1,326 | |
Earnings attributable to noncontrolling interests and redeemable noncontrolling interests | 224 | (18) | 134 | (66) | |
Preference share dividends | (70) | (59) | (142) | (114) | |
Earnings attributable to Enbridge Inc. common shareholders | 577 | 756 | 194 | 1,146 | |
Additions to property, plant and equipment | 1,974 | 2,635 | 3,564 | 5,044 | |
Total Assets | 77,716 | 77,716 | CAD 72,857 | ||
Liquids Pipelines | |||||
Segmented Information | |||||
Revenues | 1,130 | 991 | 1,159 | 1,438 | |
Commodity and gas distribution costs | (4) | (4) | |||
Operating and administrative | (329) | (279) | (751) | (535) | |
Depreciation and amortization | (158) | (121) | (308) | (238) | |
Environmental costs, net of recoveries | (8) | 7 | 4 | 7 | |
Total operating income | 631 | 598 | 100 | 672 | |
Income/(loss) from equity investments | 85 | 39 | 145 | 75 | |
Other income/(expense) | (8) | 2 | (12) | 3 | |
Interest income/(expense) | (172) | (87) | (314) | (174) | |
Income taxes recovery/(expense) | (127) | (120) | 69 | (99) | |
Earnings from continuing operations | 477 | ||||
Discontinued operations | |||||
Earnings | 409 | 432 | (12) | 477 | |
Earnings attributable to noncontrolling interests and redeemable noncontrolling interests | (1) | (1) | (2) | ||
Earnings attributable to Enbridge Inc. common shareholders | 409 | 431 | (13) | 475 | |
Additions to property, plant and equipment | 1,009 | 1,516 | 1,833 | 3,014 | |
Total Assets | 30,194 | 30,194 | 27,657 | ||
Gas Distribution | |||||
Segmented Information | |||||
Revenues | 630 | 629 | 2,418 | 1,914 | |
Commodity and gas distribution costs | (332) | (337) | (1,696) | (1,183) | |
Operating and administrative | (134) | (137) | (268) | (270) | |
Depreciation and amortization | (80) | (88) | (157) | (172) | |
Total operating income | 84 | 67 | 297 | 289 | |
Other income/(expense) | (1) | (1) | (2) | 2 | |
Interest income/(expense) | (40) | (40) | (82) | (80) | |
Income taxes recovery/(expense) | (4) | (7) | (35) | (56) | |
Earnings from continuing operations | 155 | ||||
Discontinued operations | |||||
Earnings | 39 | 19 | 178 | 155 | |
Earnings attributable to Enbridge Inc. common shareholders | 39 | 19 | 178 | 155 | |
Additions to property, plant and equipment | 229 | 111 | 335 | 208 | |
Total Assets | 8,791 | 8,791 | 9,320 | ||
Gas Pipelines, Processing and Energy Services | |||||
Segmented Information | |||||
Revenues | 5,172 | 6,286 | 9,404 | 12,708 | |
Commodity and gas distribution costs | (4,953) | (6,050) | (9,045) | (12,169) | |
Operating and administrative | (69) | (50) | (124) | (84) | |
Depreciation and amortization | (47) | (23) | (95) | (35) | |
Total operating income | 103 | 163 | 140 | 420 | |
Income/(loss) from equity investments | (12) | 29 | 2 | 78 | |
Other income/(expense) | 12 | 4 | 18 | 9 | |
Interest income/(expense) | (28) | (25) | (58) | (43) | |
Income taxes recovery/(expense) | (26) | (64) | (38) | (166) | |
Earnings from continuing operations | 298 | ||||
Discontinued operations | |||||
Earnings from discontinued operations before income taxes | 73 | ||||
Income taxes from discontinued operations | (27) | ||||
Earnings from discontinued operations | 46 | ||||
Earnings | 49 | 107 | 64 | 344 | |
Earnings attributable to noncontrolling interests and redeemable noncontrolling interests | 5 | 6 | |||
Earnings attributable to Enbridge Inc. common shareholders | 54 | 107 | 70 | 344 | |
Additions to property, plant and equipment | 32 | 211 | 112 | 329 | |
Total Assets | 8,352 | 8,352 | 7,601 | ||
Sponsored Investments | |||||
Segmented Information | |||||
Revenues | 1,699 | 2,120 | 3,579 | 4,487 | |
Commodity and gas distribution costs | (810) | (1,336) | (1,758) | (2,950) | |
Operating and administrative | (389) | (341) | (773) | (664) | |
Depreciation and amortization | (194) | (156) | (388) | (305) | |
Environmental costs, net of recoveries | 1 | (43) | (48) | ||
Goodwill impairment | (440) | (440) | |||
Total operating income | (133) | 244 | 220 | 520 | |
Income/(loss) from equity investments | 54 | 17 | 99 | 35 | |
Other income/(expense) | 5 | (1) | (4) | (2) | |
Interest income/(expense) | (123) | (110) | (209) | (221) | |
Income taxes recovery/(expense) | (58) | (46) | (140) | (97) | |
Earnings from continuing operations | 235 | ||||
Discontinued operations | |||||
Earnings | (255) | 104 | (34) | 235 | |
Earnings attributable to noncontrolling interests and redeemable noncontrolling interests | 219 | (17) | 129 | (64) | |
Earnings attributable to Enbridge Inc. common shareholders | (36) | 87 | 95 | 171 | |
Additions to property, plant and equipment | 692 | 787 | 1,258 | 1,469 | |
Total Assets | 25,177 | 25,177 | 23,515 | ||
Corporate | |||||
Segmented Information | |||||
Commodity and gas distribution costs | (2) | ||||
Operating and administrative | (7) | (7) | (3) | (6) | |
Depreciation and amortization | (6) | (5) | (11) | (9) | |
Total operating income | (13) | (12) | (16) | (15) | |
Income/(loss) from equity investments | (18) | (20) | (4) | (9) | |
Other income/(expense) | 150 | 211 | (299) | 65 | |
Interest income/(expense) | 79 | 31 | 128 | 49 | |
Income taxes recovery/(expense) | (17) | (39) | 197 | 25 | |
Earnings from continuing operations | 115 | ||||
Discontinued operations | |||||
Earnings | 181 | 171 | 6 | 115 | |
Preference share dividends | (70) | (59) | (142) | (114) | |
Earnings attributable to Enbridge Inc. common shareholders | 111 | 112 | (136) | 1 | |
Additions to property, plant and equipment | 12 | 10 | 26 | 24 | |
Interest income - intersegment | 226 | CAD 161 | 422 | CAD 316 | |
Total Assets | CAD 5,202 | 5,202 | CAD 4,764 | ||
Out of period adjustments | |||||
Out of period non-cash adjustment to income taxes | CAD 71 |
ACQUISITION AND DISPOSITIONS (D
ACQUISITION AND DISPOSITIONS (Details) CAD in Millions, $ in Millions | Mar. 01, 2014USD ($) | Mar. 01, 2014CAD | May. 31, 2015CAD | Jun. 30, 2015CAD | Jun. 30, 2015CAD | Jun. 30, 2014USD ($) | Jun. 30, 2014CAD | Dec. 31, 2014 |
Acquisitions and Dispositions | ||||||||
Gain on disposition (Note 6) | CAD 29 | CAD 34 | CAD 16 | |||||
Enbridge Offshore Pipelines | ||||||||
Acquisitions and Dispositions | ||||||||
Cash proceeds from sale of assets | $ 10 | CAD 11 | ||||||
Gain resulted from the cash proceeds and disposition of net liabilities held for sale | $ 63 | 70 | ||||||
Amount of disposition of net liabilities held for sale | $ 53 | 59 | ||||||
Revenues presented as discontinued operations | CAD 4 | |||||||
Other Dispositions | ||||||||
Acquisitions and Dispositions | ||||||||
Cash proceeds from sale of assets | CAD 26 | |||||||
Gain on disposition (Note 6) | CAD 22 | |||||||
Magic Valley and Wildcat Wind Farms | ||||||||
Acquisitions and Dispositions | ||||||||
Ownership interest acquired (as a percent) | 80.00% |
ACCOUNTS RECEIVABLE AND OTHER (
ACCOUNTS RECEIVABLE AND OTHER (Details) - Special Purpose Entity CAD in Millions, $ in Millions | 6 Months Ended | |||
Jun. 30, 2015USD ($) | Jun. 30, 2015CAD | Dec. 31, 2014USD ($) | Dec. 31, 2014CAD | |
Accounts receivable and other | ||||
Trade and accrued receivables | $ 341 | CAD 425 | $ 378 | CAD 439 |
Percentage of ownership in SPE, which has access to receivable owned by SPE | 100.00% | 100.00% | ||
Maximum | ||||
Accounts receivable and other | ||||
Accumulated purchases, net of collections | $ 450 |
GOODWILL (Details)
GOODWILL (Details) - Jun. 30, 2015 - CAD CAD in Millions | Total | Total |
Goodwill roll forward | ||
Goodwill impairment | CAD 440 | CAD 440 |
Goodwill impairment, after tax | CAD 167 |
DEBT (Details)
DEBT (Details) - CAD CAD in Millions | 6 Months Ended | |
Jun. 30, 2015 | Dec. 31, 2014 | |
CREDIT FACILITIES | ||
Weighted average standby fee on unused portion (as a percent) | 0.20% | |
Long-term debt | CAD 36,309 | CAD 33,423 |
Committed credit facilities | ||
CREDIT FACILITIES | ||
Total Facilities | 21,019 | 18,611 |
Draws | 12,399 | |
Available | 8,620 | |
Committed credit facilities | Liquids Pipelines | ||
CREDIT FACILITIES | ||
Total Facilities | 300 | 300 |
Draws | 300 | |
Committed credit facilities | Gas Distribution | ||
CREDIT FACILITIES | ||
Total Facilities | 1,009 | 1,008 |
Draws | 688 | |
Available | 321 | |
Committed credit facilities | Sponsored Investments | ||
CREDIT FACILITIES | ||
Total Facilities | 4,834 | 4,531 |
Draws | 3,344 | |
Available | 1,490 | |
Committed credit facilities | Corporate | ||
CREDIT FACILITIES | ||
Total Facilities | 14,876 | 12,772 |
Draws | 8,067 | |
Available | 6,809 | |
Uncommitted demand credit facilities | ||
CREDIT FACILITIES | ||
Total Facilities | 381 | 361 |
Available | 86 | 80 |
Commercial paper and credit facility draws, net of short term borrowings | ||
CREDIT FACILITIES | ||
Long-term debt | CAD 11,515 | CAD 8,960 |
EARNINGS PER COMMON SHARE (Deta
EARNINGS PER COMMON SHARE (Details) - CAD / shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
EARNINGS PER COMMON SHARE | ||||
Prorata weighted average interest in entity's own common shares | 12,000,000 | 12,000,000 | 12,000,000 | 12,000,000 |
Weighted average number of shares outstanding diluted | ||||
Weighted average shares outstanding | 846,000,000 | 824,000,000 | 843,000,000 | 822,000,000 |
Effect of dilutive options (in shares) | 12,000,000 | 10,000,000 | 13,000,000 | 10,000,000 |
Diluted weighted average shares outstanding | 858,000,000 | 834,000,000 | 856,000,000 | 832,000,000 |
Stock options | ||||
Antidilutive securities | ||||
Antidilutive securities excluded from the diluted earnings per common share calculation (in shares) | 5,851,770 | 5,945,800 | 5,851,770 | 7,183,912 |
Weighted average exercise price of antidilutive securities (in Canadian dollars per share) | CAD 59.14 | CAD 48.80 | CAD 59.14 | CAD 48.12 |
COMPONENTS OF ACCUMULATED OTH35
COMPONENTS OF ACCUMULATED OTHER COMPREHENSIVE LOSS (Details) - CAD CAD in Millions | 6 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
COMPONENTS OF ACCUMULATED OTHER COMPREHENSIVE LOSS | ||
Balance at the beginning of the period | CAD (435) | CAD (599) |
Other comprehensive income/(loss) retained in AOCI | 531 | (505) |
Total before tax impact | 565 | (413) |
Income tax on amounts retained in AOCI | 95 | 140 |
Income tax on amounts reclassified to earnings | (12) | (14) |
Tax impact | 83 | 126 |
Balance at the end of the period | 213 | (886) |
Interest rate contracts | ||
COMPONENTS OF ACCUMULATED OTHER COMPREHENSIVE LOSS | ||
Other comprehensive gains/(loss) reclassified to earnings | 8 | 55 |
Commodity contracts | ||
COMPONENTS OF ACCUMULATED OTHER COMPREHENSIVE LOSS | ||
Other comprehensive gains/(loss) reclassified to earnings | (4) | 7 |
Foreign Exchange Risk | ||
COMPONENTS OF ACCUMULATED OTHER COMPREHENSIVE LOSS | ||
Other comprehensive gains/(loss) reclassified to earnings | 7 | 15 |
Other contracts | ||
COMPONENTS OF ACCUMULATED OTHER COMPREHENSIVE LOSS | ||
Other comprehensive gains/(loss) reclassified to earnings | 6 | 9 |
Amortization of pension and OPEB actuarial loss | ||
COMPONENTS OF ACCUMULATED OTHER COMPREHENSIVE LOSS | ||
Other comprehensive gains/(loss) reclassified to earnings | 17 | 6 |
Cash Flow Hedges | ||
COMPONENTS OF ACCUMULATED OTHER COMPREHENSIVE LOSS | ||
Balance at the beginning of the period | (488) | (1) |
Other comprehensive income/(loss) retained in AOCI | (272) | (514) |
Total before tax impact | (255) | (428) |
Income tax on amounts retained in AOCI | 73 | 141 |
Income tax on amounts reclassified to earnings | (8) | (11) |
Tax impact | 65 | 130 |
Balance at the end of the period | (678) | (299) |
Cash Flow Hedges | Interest rate contracts | ||
COMPONENTS OF ACCUMULATED OTHER COMPREHENSIVE LOSS | ||
Other comprehensive gains/(loss) reclassified to earnings | 8 | 55 |
Cash Flow Hedges | Commodity contracts | ||
COMPONENTS OF ACCUMULATED OTHER COMPREHENSIVE LOSS | ||
Other comprehensive gains/(loss) reclassified to earnings | (4) | 7 |
Cash Flow Hedges | Foreign Exchange Risk | ||
COMPONENTS OF ACCUMULATED OTHER COMPREHENSIVE LOSS | ||
Other comprehensive gains/(loss) reclassified to earnings | 7 | 15 |
Cash Flow Hedges | Other contracts | ||
COMPONENTS OF ACCUMULATED OTHER COMPREHENSIVE LOSS | ||
Other comprehensive gains/(loss) reclassified to earnings | 6 | 9 |
Net Investment Hedges | ||
COMPONENTS OF ACCUMULATED OTHER COMPREHENSIVE LOSS | ||
Balance at the beginning of the period | 108 | 378 |
Other comprehensive income/(loss) retained in AOCI | (370) | 10 |
Total before tax impact | (370) | 10 |
Income tax on amounts retained in AOCI | 24 | (1) |
Tax impact | 24 | (1) |
Balance at the end of the period | (238) | 387 |
Cumulative Translation Adjustment | ||
COMPONENTS OF ACCUMULATED OTHER COMPREHENSIVE LOSS | ||
Balance at the beginning of the period | 309 | (778) |
Other comprehensive income/(loss) retained in AOCI | 1,149 | (8) |
Total before tax impact | 1,149 | (8) |
Balance at the end of the period | 1,458 | (786) |
Equity Investees | ||
COMPONENTS OF ACCUMULATED OTHER COMPREHENSIVE LOSS | ||
Balance at the beginning of the period | (5) | (15) |
Other comprehensive income/(loss) retained in AOCI | 24 | 7 |
Total before tax impact | 24 | 7 |
Income tax on amounts retained in AOCI | (2) | |
Tax impact | (2) | |
Balance at the end of the period | 17 | (8) |
Pension and OPEB Amortization Adjustment | ||
COMPONENTS OF ACCUMULATED OTHER COMPREHENSIVE LOSS | ||
Balance at the beginning of the period | (359) | (183) |
Total before tax impact | 17 | 6 |
Income tax on amounts reclassified to earnings | (4) | (3) |
Tax impact | (4) | (3) |
Balance at the end of the period | (346) | (180) |
Pension and OPEB Amortization Adjustment | Amortization of pension and OPEB actuarial loss | ||
COMPONENTS OF ACCUMULATED OTHER COMPREHENSIVE LOSS | ||
Other comprehensive gains/(loss) reclassified to earnings | CAD 17 | CAD 6 |
NONCONTROLLING INTERESTS (Detai
NONCONTROLLING INTERESTS (Detail) $ / shares in Units, CAD in Millions, $ in Millions | Jan. 02, 2015USD ($)$ / shares | Jan. 02, 2015CAD | Mar. 31, 2015USD ($) | Mar. 31, 2015CAD | Jun. 30, 2015 | Dec. 31, 2014 |
Preference Shares, Series E | ||||||
Noncontrolling Interest [Line Items] | ||||||
Conversion rate for Class A units | 100.00% | 100.00% | ||||
Period for redemption at the issuers option | 30 years | 30 years | ||||
Liquidation price (in dollars per share) | $ / shares | $ 38.31 | |||||
Trailing period for determination of liquidation price | 5 days | 5 days | ||||
EEP | ||||||
Noncontrolling Interest [Line Items] | ||||||
Consideration received | $ 1,000 | CAD 1,100 | ||||
Debt repayment amount | $ 306 | CAD 359 | ||||
EEP | Alberta Clipper Pipeline | ||||||
Noncontrolling Interest [Line Items] | ||||||
Investment ownership percentage transferred | 66.70% | 66.70% | ||||
EEP | ||||||
Noncontrolling Interest [Line Items] | ||||||
Economic interest (as a percent) | 36.60% | 36.60% | 35.90% | 35.90% | 35.90% | 33.70% |
Decrease in noncontrolling interest | CAD 304 | |||||
Increase to additional paid in capital | 218 | |||||
Increase to deferred income taxes | 86 | |||||
GP interest percent in EEP | 2.00% | 2.00% | ||||
Contributions from unitholders | $ 289 | CAD 366 | ||||
EEP | Preference Shares, Series E | ||||||
Noncontrolling Interest [Line Items] | ||||||
Equity issued | $ 694 | CAD 814 | ||||
EEP | Alberta Clipper Pipeline | ||||||
Noncontrolling Interest [Line Items] | ||||||
Ownership percent before transfer | 33.30% | 33.30% |
RISK MANAGEMENT AND FINANCIAL37
RISK MANAGEMENT AND FINANCIAL INSTRUMENTS (Details) - Jun. 30, 2015 - item | Total |
Maximum | |
RISK MANAGEMENT AND FINANCIAL INSTRUMENTS | |
Floating rate debt as a percentage of total debt outstanding | 25.00% |
Foreign Exchange Risk | |
RISK MANAGEMENT AND FINANCIAL INSTRUMENTS | |
Period to hedge a minimum level of foreign currency denominated earnings exposures | 5 years |
Interest rate contracts - short-term borrowings | |
RISK MANAGEMENT AND FINANCIAL INSTRUMENTS | |
Average swap rate (as a percent) | 2.30% |
Interest rate contracts - long-term debt | |
RISK MANAGEMENT AND FINANCIAL INSTRUMENTS | |
Average swap rate (as a percent) | 4.00% |
Equity contracts | |
RISK MANAGEMENT AND FINANCIAL INSTRUMENTS | |
Number of forms of stock-based compensation with equity price risk | 1 |
RISK MANAGEMENT AND FINANCIAL38
RISK MANAGEMENT AND FINANCIAL INSTRUMENTS (Details 2) - CAD CAD in Millions | Jun. 30, 2015 | Dec. 31, 2014 |
TOTAL DERIVATIVE INSTRUMENTS | ||
Total Gross Derivative Instruments | CAD (3,806) | CAD (2,331) |
Derivative liabilities, Amounts Available for Offset | (14) | (33) |
Total net financial asset/(liability) | (3,820) | (2,364) |
Non-Qualifying Derivative Instruments | ||
TOTAL DERIVATIVE INSTRUMENTS | ||
Total net financial asset/(liability) | (2,450) | (1,319) |
Cash Flow Hedges | Designated as hedging instrument | ||
TOTAL DERIVATIVE INSTRUMENTS | ||
Total net financial asset/(liability) | (1,151) | (908) |
Net Investment Hedges | Designated as hedging instrument | ||
TOTAL DERIVATIVE INSTRUMENTS | ||
Total net financial asset/(liability) | (205) | (104) |
Accounts receivable and other | ||
TOTAL DERIVATIVE INSTRUMENTS | ||
Current derivative assets, Total Gross Derivative Instruments | 326 | 568 |
Current derivative assets, Amounts Available for Offset | (104) | (150) |
Total current derivative assets | 222 | 418 |
Accounts receivable and other | Non-Qualifying Derivative Instruments | ||
TOTAL DERIVATIVE INSTRUMENTS | ||
Current derivative assets, Total Gross Derivative Instruments | 298 | 512 |
Accounts receivable and other | Cash Flow Hedges | Designated as hedging instrument | ||
TOTAL DERIVATIVE INSTRUMENTS | ||
Current derivative assets, Total Gross Derivative Instruments | 23 | 49 |
Accounts receivable and other | Net Investment Hedges | Designated as hedging instrument | ||
TOTAL DERIVATIVE INSTRUMENTS | ||
Current derivative assets, Total Gross Derivative Instruments | 5 | 7 |
Deferred amounts and other assets | ||
TOTAL DERIVATIVE INSTRUMENTS | ||
Long-term derivative assets, Total Gross Derivative Instruments | 171 | 199 |
Long-term derivative assets, Amounts Available for Offset | (109) | (99) |
Total long-term derivative assets | 62 | 100 |
Deferred amounts and other assets | Non-Qualifying Derivative Instruments | ||
TOTAL DERIVATIVE INSTRUMENTS | ||
Long-term derivative assets, Total Gross Derivative Instruments | 85 | 121 |
Deferred amounts and other assets | Cash Flow Hedges | Designated as hedging instrument | ||
TOTAL DERIVATIVE INSTRUMENTS | ||
Long-term derivative assets, Total Gross Derivative Instruments | 75 | 60 |
Deferred amounts and other assets | Net Investment Hedges | Designated as hedging instrument | ||
TOTAL DERIVATIVE INSTRUMENTS | ||
Long-term derivative assets, Total Gross Derivative Instruments | 11 | 18 |
Accounts payable and other | ||
TOTAL DERIVATIVE INSTRUMENTS | ||
Current derivative liabilities, Total Gross Derivative Instruments | (1,274) | (1,020) |
Current derivative liabilities, Amounts Available for Offset | 90 | 117 |
Total current derivative liabilities | (1,184) | (903) |
Accounts payable and other | Non-Qualifying Derivative Instruments | ||
TOTAL DERIVATIVE INSTRUMENTS | ||
Current derivative liabilities, Total Gross Derivative Instruments | (710) | (499) |
Accounts payable and other | Cash Flow Hedges | Designated as hedging instrument | ||
TOTAL DERIVATIVE INSTRUMENTS | ||
Current derivative liabilities, Total Gross Derivative Instruments | (538) | (441) |
Accounts payable and other | Net Investment Hedges | Designated as hedging instrument | ||
TOTAL DERIVATIVE INSTRUMENTS | ||
Current derivative liabilities, Total Gross Derivative Instruments | (26) | (80) |
Other long-term liabilities | ||
TOTAL DERIVATIVE INSTRUMENTS | ||
Long-term derivative liabilities, Total Gross Derivative Instruments | (3,029) | (2,078) |
Long-term derivative liabilities, Amounts Available for Offset | 109 | 99 |
Total long-term derivative liabilities | (2,920) | (1,979) |
Other long-term liabilities | Non-Qualifying Derivative Instruments | ||
TOTAL DERIVATIVE INSTRUMENTS | ||
Long-term derivative liabilities, Total Gross Derivative Instruments | (2,123) | (1,453) |
Other long-term liabilities | Cash Flow Hedges | Designated as hedging instrument | ||
TOTAL DERIVATIVE INSTRUMENTS | ||
Long-term derivative liabilities, Total Gross Derivative Instruments | (711) | (576) |
Other long-term liabilities | Net Investment Hedges | Designated as hedging instrument | ||
TOTAL DERIVATIVE INSTRUMENTS | ||
Long-term derivative liabilities, Total Gross Derivative Instruments | (195) | (49) |
Foreign Exchange Risk | ||
TOTAL DERIVATIVE INSTRUMENTS | ||
Total net financial asset/(liability) | (2,403) | (1,433) |
Foreign Exchange Risk | Non-Qualifying Derivative Instruments | ||
TOTAL DERIVATIVE INSTRUMENTS | ||
Total net financial asset/(liability) | (2,267) | (1,362) |
Foreign Exchange Risk | Cash Flow Hedges | Designated as hedging instrument | ||
TOTAL DERIVATIVE INSTRUMENTS | ||
Total net financial asset/(liability) | 69 | 33 |
Foreign Exchange Risk | Net Investment Hedges | Designated as hedging instrument | ||
TOTAL DERIVATIVE INSTRUMENTS | ||
Total net financial asset/(liability) | (205) | (104) |
Foreign Exchange Risk | Accounts receivable and other | ||
TOTAL DERIVATIVE INSTRUMENTS | ||
Current derivative assets, Total Gross Derivative Instruments | 13 | 13 |
Current derivative assets, Amounts Available for Offset | (7) | (13) |
Total current derivative assets | 6 | |
Foreign Exchange Risk | Accounts receivable and other | Non-Qualifying Derivative Instruments | ||
TOTAL DERIVATIVE INSTRUMENTS | ||
Current derivative assets, Total Gross Derivative Instruments | 4 | 3 |
Foreign Exchange Risk | Accounts receivable and other | Cash Flow Hedges | Designated as hedging instrument | ||
TOTAL DERIVATIVE INSTRUMENTS | ||
Current derivative assets, Total Gross Derivative Instruments | 4 | 3 |
Foreign Exchange Risk | Accounts receivable and other | Net Investment Hedges | Designated as hedging instrument | ||
TOTAL DERIVATIVE INSTRUMENTS | ||
Current derivative assets, Total Gross Derivative Instruments | 5 | 7 |
Foreign Exchange Risk | Deferred amounts and other assets | ||
TOTAL DERIVATIVE INSTRUMENTS | ||
Long-term derivative assets, Total Gross Derivative Instruments | 76 | 51 |
Long-term derivative assets, Amounts Available for Offset | (76) | (51) |
Foreign Exchange Risk | Deferred amounts and other assets | Cash Flow Hedges | Designated as hedging instrument | ||
TOTAL DERIVATIVE INSTRUMENTS | ||
Long-term derivative assets, Total Gross Derivative Instruments | 65 | 33 |
Foreign Exchange Risk | Deferred amounts and other assets | Net Investment Hedges | Designated as hedging instrument | ||
TOTAL DERIVATIVE INSTRUMENTS | ||
Long-term derivative assets, Total Gross Derivative Instruments | 11 | 18 |
Foreign Exchange Risk | Accounts payable and other | ||
TOTAL DERIVATIVE INSTRUMENTS | ||
Current derivative liabilities, Total Gross Derivative Instruments | (446) | (301) |
Current derivative liabilities, Amounts Available for Offset | 7 | 13 |
Total current derivative liabilities | (439) | (288) |
Foreign Exchange Risk | Accounts payable and other | Non-Qualifying Derivative Instruments | ||
TOTAL DERIVATIVE INSTRUMENTS | ||
Current derivative liabilities, Total Gross Derivative Instruments | (420) | (218) |
Foreign Exchange Risk | Accounts payable and other | Cash Flow Hedges | Designated as hedging instrument | ||
TOTAL DERIVATIVE INSTRUMENTS | ||
Current derivative liabilities, Total Gross Derivative Instruments | (3) | |
Foreign Exchange Risk | Accounts payable and other | Net Investment Hedges | Designated as hedging instrument | ||
TOTAL DERIVATIVE INSTRUMENTS | ||
Current derivative liabilities, Total Gross Derivative Instruments | (26) | (80) |
Foreign Exchange Risk | Other long-term liabilities | ||
TOTAL DERIVATIVE INSTRUMENTS | ||
Long-term derivative liabilities, Total Gross Derivative Instruments | (2,046) | (1,196) |
Long-term derivative liabilities, Amounts Available for Offset | 76 | 51 |
Total long-term derivative liabilities | (1,970) | (1,145) |
Foreign Exchange Risk | Other long-term liabilities | Non-Qualifying Derivative Instruments | ||
TOTAL DERIVATIVE INSTRUMENTS | ||
Long-term derivative liabilities, Total Gross Derivative Instruments | (1,851) | (1,147) |
Foreign Exchange Risk | Other long-term liabilities | Net Investment Hedges | Designated as hedging instrument | ||
TOTAL DERIVATIVE INSTRUMENTS | ||
Long-term derivative liabilities, Total Gross Derivative Instruments | (195) | (49) |
Interest rate contracts | ||
TOTAL DERIVATIVE INSTRUMENTS | ||
Total net financial asset/(liability) | (1,240) | (1,001) |
Interest rate contracts | Cash Flow Hedges | Designated as hedging instrument | ||
TOTAL DERIVATIVE INSTRUMENTS | ||
Total net financial asset/(liability) | (1,240) | (1,001) |
Interest rate contracts | Accounts receivable and other | ||
TOTAL DERIVATIVE INSTRUMENTS | ||
Current derivative assets, Total Gross Derivative Instruments | 2 | 8 |
Current derivative assets, Amounts Available for Offset | (2) | (7) |
Total current derivative assets | 1 | |
Interest rate contracts | Accounts receivable and other | Cash Flow Hedges | Designated as hedging instrument | ||
TOTAL DERIVATIVE INSTRUMENTS | ||
Current derivative assets, Total Gross Derivative Instruments | 2 | 8 |
Interest rate contracts | Deferred amounts and other assets | ||
TOTAL DERIVATIVE INSTRUMENTS | ||
Long-term derivative assets, Total Gross Derivative Instruments | 5 | 5 |
Long-term derivative assets, Amounts Available for Offset | (3) | (5) |
Total long-term derivative assets | 2 | |
Interest rate contracts | Deferred amounts and other assets | Cash Flow Hedges | Designated as hedging instrument | ||
TOTAL DERIVATIVE INSTRUMENTS | ||
Long-term derivative assets, Total Gross Derivative Instruments | 5 | 5 |
Interest rate contracts | Accounts payable and other | ||
TOTAL DERIVATIVE INSTRUMENTS | ||
Current derivative liabilities, Total Gross Derivative Instruments | (538) | (438) |
Current derivative liabilities, Amounts Available for Offset | 2 | 7 |
Total current derivative liabilities | (536) | (431) |
Interest rate contracts | Accounts payable and other | Cash Flow Hedges | Designated as hedging instrument | ||
TOTAL DERIVATIVE INSTRUMENTS | ||
Current derivative liabilities, Total Gross Derivative Instruments | (538) | (438) |
Interest rate contracts | Other long-term liabilities | ||
TOTAL DERIVATIVE INSTRUMENTS | ||
Long-term derivative liabilities, Total Gross Derivative Instruments | (709) | (576) |
Long-term derivative liabilities, Amounts Available for Offset | 3 | 5 |
Total long-term derivative liabilities | (706) | (571) |
Interest rate contracts | Other long-term liabilities | Cash Flow Hedges | Designated as hedging instrument | ||
TOTAL DERIVATIVE INSTRUMENTS | ||
Long-term derivative liabilities, Total Gross Derivative Instruments | (709) | (576) |
Commodity contracts | ||
TOTAL DERIVATIVE INSTRUMENTS | ||
Total Gross Derivative Instruments | (176) | 83 |
Derivative liabilities, Amounts Available for Offset | (14) | (33) |
Total net financial asset/(liability) | (190) | 50 |
Commodity contracts | Non-Qualifying Derivative Instruments | ||
TOTAL DERIVATIVE INSTRUMENTS | ||
Total net financial asset/(liability) | (195) | 32 |
Commodity contracts | Cash Flow Hedges | Designated as hedging instrument | ||
TOTAL DERIVATIVE INSTRUMENTS | ||
Total net financial asset/(liability) | 19 | 51 |
Commodity contracts | Accounts receivable and other | ||
TOTAL DERIVATIVE INSTRUMENTS | ||
Current derivative assets, Total Gross Derivative Instruments | 301 | 535 |
Current derivative assets, Amounts Available for Offset | (95) | (130) |
Total current derivative assets | 206 | 405 |
Commodity contracts | Accounts receivable and other | Non-Qualifying Derivative Instruments | ||
TOTAL DERIVATIVE INSTRUMENTS | ||
Current derivative assets, Total Gross Derivative Instruments | 285 | 501 |
Commodity contracts | Accounts receivable and other | Cash Flow Hedges | Designated as hedging instrument | ||
TOTAL DERIVATIVE INSTRUMENTS | ||
Current derivative assets, Total Gross Derivative Instruments | 16 | 34 |
Commodity contracts | Deferred amounts and other assets | ||
TOTAL DERIVATIVE INSTRUMENTS | ||
Long-term derivative assets, Total Gross Derivative Instruments | 85 | 135 |
Long-term derivative assets, Amounts Available for Offset | (30) | (43) |
Total long-term derivative assets | 55 | 92 |
Commodity contracts | Deferred amounts and other assets | Non-Qualifying Derivative Instruments | ||
TOTAL DERIVATIVE INSTRUMENTS | ||
Long-term derivative assets, Total Gross Derivative Instruments | 82 | 118 |
Commodity contracts | Deferred amounts and other assets | Cash Flow Hedges | Designated as hedging instrument | ||
TOTAL DERIVATIVE INSTRUMENTS | ||
Long-term derivative assets, Total Gross Derivative Instruments | 3 | 17 |
Commodity contracts | Accounts payable and other | ||
TOTAL DERIVATIVE INSTRUMENTS | ||
Current derivative liabilities, Total Gross Derivative Instruments | (290) | (281) |
Current derivative liabilities, Amounts Available for Offset | 81 | 97 |
Total current derivative liabilities | (209) | (184) |
Commodity contracts | Accounts payable and other | Non-Qualifying Derivative Instruments | ||
TOTAL DERIVATIVE INSTRUMENTS | ||
Current derivative liabilities, Total Gross Derivative Instruments | (290) | (281) |
Commodity contracts | Other long-term liabilities | ||
TOTAL DERIVATIVE INSTRUMENTS | ||
Long-term derivative liabilities, Total Gross Derivative Instruments | (272) | (306) |
Long-term derivative liabilities, Amounts Available for Offset | 30 | 43 |
Total long-term derivative liabilities | (242) | (263) |
Commodity contracts | Other long-term liabilities | Non-Qualifying Derivative Instruments | ||
TOTAL DERIVATIVE INSTRUMENTS | ||
Long-term derivative liabilities, Total Gross Derivative Instruments | (272) | (306) |
Other contracts | ||
TOTAL DERIVATIVE INSTRUMENTS | ||
Total net financial asset/(liability) | 13 | 20 |
Other contracts | Non-Qualifying Derivative Instruments | ||
TOTAL DERIVATIVE INSTRUMENTS | ||
Total net financial asset/(liability) | 12 | 11 |
Other contracts | Cash Flow Hedges | Designated as hedging instrument | ||
TOTAL DERIVATIVE INSTRUMENTS | ||
Total net financial asset/(liability) | 1 | 9 |
Other contracts | Accounts receivable and other | ||
TOTAL DERIVATIVE INSTRUMENTS | ||
Current derivative assets, Total Gross Derivative Instruments | 10 | 12 |
Total current derivative assets | 10 | 12 |
Other contracts | Accounts receivable and other | Non-Qualifying Derivative Instruments | ||
TOTAL DERIVATIVE INSTRUMENTS | ||
Current derivative assets, Total Gross Derivative Instruments | 9 | 8 |
Other contracts | Accounts receivable and other | Cash Flow Hedges | Designated as hedging instrument | ||
TOTAL DERIVATIVE INSTRUMENTS | ||
Current derivative assets, Total Gross Derivative Instruments | 1 | 4 |
Other contracts | Deferred amounts and other assets | ||
TOTAL DERIVATIVE INSTRUMENTS | ||
Long-term derivative assets, Total Gross Derivative Instruments | 5 | 8 |
Total long-term derivative assets | 5 | 8 |
Other contracts | Deferred amounts and other assets | Non-Qualifying Derivative Instruments | ||
TOTAL DERIVATIVE INSTRUMENTS | ||
Long-term derivative assets, Total Gross Derivative Instruments | 3 | 3 |
Other contracts | Deferred amounts and other assets | Cash Flow Hedges | Designated as hedging instrument | ||
TOTAL DERIVATIVE INSTRUMENTS | ||
Long-term derivative assets, Total Gross Derivative Instruments | 2 | CAD 5 |
Other contracts | Other long-term liabilities | ||
TOTAL DERIVATIVE INSTRUMENTS | ||
Long-term derivative liabilities, Total Gross Derivative Instruments | (2) | |
Total long-term derivative liabilities | (2) | |
Other contracts | Other long-term liabilities | Cash Flow Hedges | Designated as hedging instrument | ||
TOTAL DERIVATIVE INSTRUMENTS | ||
Long-term derivative liabilities, Total Gross Derivative Instruments | CAD (2) |
RISK MANAGEMENT AND FINANCIAL39
RISK MANAGEMENT AND FINANCIAL INSTRUMENTS (Details 3) MMcf in Thousands, € in Millions, CAD in Millions, $ in Millions | Jun. 30, 2015USD ($)MWhMMcfMMBbls | Jun. 30, 2015CADMWhMMcfMMBbls | Dec. 31, 2014EUR (€)MWhMMcfMMBbls | Dec. 31, 2014USD ($)MWhMMcfMMBbls | Dec. 31, 2014CADMWhMMcfMMBbls |
Foreign exchange contracts - United States or Euro dollar forwards - purchase | |||||
RISK MANAGEMENT AND FINANCIAL INSTRUMENTS | |||||
2,015 | $ 200 | € 15 | $ 240 | ||
2016 | $ | 28 | 25 | |||
2017 | $ | 413 | 413 | |||
2018 | $ | 2 | 2 | |||
2019 | $ | 2 | 2 | |||
Thereafter | $ | 2 | 2 | |||
Foreign exchange contracts - United States dollar forwards - sell | |||||
RISK MANAGEMENT AND FINANCIAL INSTRUMENTS | |||||
2015 | $ | 1,815 | 3,203 | |||
2016 | $ | 2,697 | 2,470 | |||
2017 | $ | 3,103 | 2,832 | |||
2018 | $ | 3,150 | 3,100 | |||
2019 | $ | 2,441 | 2,441 | |||
Thereafter | $ | $ 2,901 | $ 2,901 | |||
Interest rate contracts - short-term borrowings | |||||
RISK MANAGEMENT AND FINANCIAL INSTRUMENTS | |||||
2,015 | CAD 3,020 | CAD 5,767 | |||
2,016 | 5,681 | 5,486 | |||
2,017 | 5,003 | 4,851 | |||
2,018 | 3,642 | 3,529 | |||
2,019 | 232 | 222 | |||
Thereafter | 486 | 469 | |||
Interest rate contracts - long-term debt | |||||
RISK MANAGEMENT AND FINANCIAL INSTRUMENTS | |||||
2,015 | 3,685 | 3,528 | |||
2,016 | 1,806 | 1,762 | |||
2,017 | 2,514 | 2,470 | |||
2,018 | 1,207 | 1,176 | |||
Equity contracts | |||||
RISK MANAGEMENT AND FINANCIAL INSTRUMENTS | |||||
2,015 | 41 | 41 | |||
2,016 | 51 | CAD 51 | |||
2,017 | CAD 48 | ||||
Commodity contracts | Natural gas | |||||
RISK MANAGEMENT AND FINANCIAL INSTRUMENTS | |||||
2015 | MMcf | (21) | (21) | (62) | (62) | (62) |
2016 | MMcf | (17) | (17) | (10) | (10) | (10) |
2017 | MMcf | 9 | 9 | (25) | (25) | (25) |
2018 | MMcf | (10) | (10) | (1) | (1) | (1) |
2019 | MMcf | 2 | 2 | |||
Commodity contracts | Crude oil | |||||
RISK MANAGEMENT AND FINANCIAL INSTRUMENTS | |||||
2015 | MMBbls | (12) | (12) | 3 | 3 | 3 |
2016 | MMBbls | (19) | (19) | (18) | (18) | (18) |
2017 | MMBbls | (18) | (18) | (18) | (18) | (18) |
2018 | MMBbls | (9) | (9) | (9) | (9) | (9) |
Commodity contracts | NGL | |||||
RISK MANAGEMENT AND FINANCIAL INSTRUMENTS | |||||
2015 | MMBbls | (9) | (9) | (5) | (5) | (5) |
2016 | MMBbls | (8) | (8) | |||
Commodity contracts | Power | |||||
RISK MANAGEMENT AND FINANCIAL INSTRUMENTS | |||||
2015 | MWh | 18 | 18 | 25 | 25 | 25 |
2016 | MWh | 40 | 40 | 40 | 40 | 40 |
2017 | MWh | 40 | 40 | 40 | 40 | 40 |
2018 | MWh | 30 | 30 | 30 | 30 | 30 |
2019 | MWh | 31 | 31 | 31 | 31 | 31 |
Thereafter | MWh | (23) | (23) |
RISK MANAGEMENT AND FINANCIAL40
RISK MANAGEMENT AND FINANCIAL INSTRUMENTS (Details 4) - CAD CAD in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
The Effect of Derivative Instruments on the Statements of Earnings and Comprehensive Income | ||||
Amount of unrealized gains/(loss) recognized in OCI | CAD 364 | CAD (301) | CAD (367) | CAD (564) |
Amount of gains/(loss) reclassified from AOCI to earnings (effective portion) | 28 | 41 | 23 | 64 |
Amount of gains/(loss) reclassified from AOCI to earnings (ineffective portion and amount excluded from effectiveness testing) | (12) | 5 | (30) | 31 |
Total unrealized derivative fair value gains/(loss) | 352 | 607 | CAD (1,131) | 363 |
Rolling time period over which the Company forecasts cash requirements | 12 months | |||
Period of anticipated requirements for which the Company maintains sufficient liquidity through committed credit facilities | 1 year | |||
Non-Qualifying Derivative Instruments | ||||
The Effect of Derivative Instruments on the Statements of Earnings and Comprehensive Income | ||||
Total unrealized derivative fair value gains/(loss) | 352 | 609 | CAD (1,131) | 368 |
Cash Flow Hedges | ||||
The Effect of Derivative Instruments on the Statements of Earnings and Comprehensive Income | ||||
Estimated amount of AOCI related to cash flow hedges reclassified to earnings in the next 12 months | CAD 74 | |||
Period to hedge exposures to the variability of cash flows for all forecasted transactions | 42 months | |||
Foreign Exchange Risk | Other income/(expense) | ||||
The Effect of Derivative Instruments on the Statements of Earnings and Comprehensive Income | ||||
Amount of gains/(loss) reclassified from AOCI to earnings (effective portion) | 6 | 16 | CAD 6 | 15 |
Foreign Exchange Risk | Non-Qualifying Derivative Instruments | ||||
The Effect of Derivative Instruments on the Statements of Earnings and Comprehensive Income | ||||
Total unrealized derivative fair value gains/(loss) | 388 | 478 | (905) | 58 |
Foreign Exchange Risk | Non-Qualifying Derivative Instruments | Transportation and other services revenues | ||||
The Effect of Derivative Instruments on the Statements of Earnings and Comprehensive Income | ||||
Total unrealized derivative fair value gains/(loss) | (571) | 56 | ||
Foreign Exchange Risk | Non-Qualifying Derivative Instruments | Other income/(expense) | ||||
The Effect of Derivative Instruments on the Statements of Earnings and Comprehensive Income | ||||
Total unrealized derivative fair value gains/(loss) | (334) | 2 | ||
Foreign Exchange Risk | Cash Flow Hedges | ||||
The Effect of Derivative Instruments on the Statements of Earnings and Comprehensive Income | ||||
Amount of unrealized gains/(loss) recognized in OCI | (15) | (60) | 30 | (31) |
Foreign Exchange Risk | Net Investment Hedges | ||||
The Effect of Derivative Instruments on the Statements of Earnings and Comprehensive Income | ||||
Amount of unrealized gains/(loss) recognized in OCI | 22 | 45 | (101) | (3) |
Interest rate contracts | Interest expense. | ||||
The Effect of Derivative Instruments on the Statements of Earnings and Comprehensive Income | ||||
Amount of gains/(loss) reclassified from AOCI to earnings (effective portion) | 23 | 23 | 33 | 44 |
Amount of gains/(loss) reclassified from AOCI to earnings (ineffective portion and amount excluded from effectiveness testing) | (12) | 3 | (35) | 28 |
Interest rate contracts | Non-Qualifying Derivative Instruments | ||||
The Effect of Derivative Instruments on the Statements of Earnings and Comprehensive Income | ||||
Total unrealized derivative fair value gains/(loss) | 1 | 2 | ||
Interest rate contracts | Cash Flow Hedges | ||||
The Effect of Derivative Instruments on the Statements of Earnings and Comprehensive Income | ||||
Amount of unrealized gains/(loss) recognized in OCI | 392 | (279) | (272) | (521) |
Commodity contracts | Commodity costs | ||||
The Effect of Derivative Instruments on the Statements of Earnings and Comprehensive Income | ||||
Amount of gains/(loss) reclassified from AOCI to earnings (effective portion) | (2) | 5 | (22) | 12 |
Amount of gains/(loss) reclassified from AOCI to earnings (ineffective portion and amount excluded from effectiveness testing) | 2 | 5 | 3 | |
Commodity contracts | Non-Qualifying Derivative Instruments | ||||
The Effect of Derivative Instruments on the Statements of Earnings and Comprehensive Income | ||||
Total unrealized derivative fair value gains/(loss) | (35) | 128 | (227) | 301 |
Commodity contracts | Non-Qualifying Derivative Instruments | Commodity sales revenue | ||||
The Effect of Derivative Instruments on the Statements of Earnings and Comprehensive Income | ||||
Total unrealized derivative fair value gains/(loss) | (357) | 0 | ||
Commodity contracts | Non-Qualifying Derivative Instruments | Commodity costs | ||||
The Effect of Derivative Instruments on the Statements of Earnings and Comprehensive Income | ||||
Total unrealized derivative fair value gains/(loss) | 118 | (1) | ||
Commodity contracts | Non-Qualifying Derivative Instruments | Operating and administrative expense | ||||
The Effect of Derivative Instruments on the Statements of Earnings and Comprehensive Income | ||||
Total unrealized derivative fair value gains/(loss) | 7 | (3) | ||
Commodity contracts | Non-Qualifying Derivative Instruments | Transportation and other services revenues | ||||
The Effect of Derivative Instruments on the Statements of Earnings and Comprehensive Income | ||||
Total unrealized derivative fair value gains/(loss) | 5 | 305 | ||
Commodity contracts | Cash Flow Hedges | ||||
The Effect of Derivative Instruments on the Statements of Earnings and Comprehensive Income | ||||
Amount of unrealized gains/(loss) recognized in OCI | (29) | (10) | (10) | (17) |
Other contracts | Operating and administrative expense | ||||
The Effect of Derivative Instruments on the Statements of Earnings and Comprehensive Income | ||||
Amount of gains/(loss) reclassified from AOCI to earnings (effective portion) | 1 | (3) | 6 | (7) |
Other contracts | Non-Qualifying Derivative Instruments | ||||
The Effect of Derivative Instruments on the Statements of Earnings and Comprehensive Income | ||||
Total unrealized derivative fair value gains/(loss) | (1) | 2 | 1 | 7 |
Other contracts | Cash Flow Hedges | ||||
The Effect of Derivative Instruments on the Statements of Earnings and Comprehensive Income | ||||
Amount of unrealized gains/(loss) recognized in OCI | CAD (6) | CAD 3 | CAD (14) | CAD 8 |
RISK MANAGEMENT AND FINANCIAL41
RISK MANAGEMENT AND FINANCIAL INSTRUMENTS (Details 5) - CAD CAD in Millions | 6 Months Ended | 12 Months Ended |
Jun. 30, 2015 | Dec. 31, 2014 | |
Credit concentrations with respect to derivative instruments | ||
Period after which receivables are classified as past due | 30 days | |
Derivative instruments | ||
Credit concentrations with respect to derivative instruments | ||
Maximum credit exposure with respect to derivative instruments | CAD 428 | CAD 681 |
Letters of credit provided in lieu of providing cash collateral to counterparties | 395 | |
Cash collateral on asset exposure | 14 | 33 |
Derivative instruments | Canadian financial institutions | ||
Credit concentrations with respect to derivative instruments | ||
Maximum credit exposure with respect to derivative instruments | 54 | 58 |
Derivative instruments | United States financial institutions | ||
Credit concentrations with respect to derivative instruments | ||
Maximum credit exposure with respect to derivative instruments | 203 | 240 |
Derivative instruments | European financial institutions | ||
Credit concentrations with respect to derivative instruments | ||
Maximum credit exposure with respect to derivative instruments | 45 | 73 |
Derivative instruments | Other | ||
Credit concentrations with respect to derivative instruments | ||
Maximum credit exposure with respect to derivative instruments | CAD 126 | CAD 310 |
RISK MANAGEMENT AND FINANCIAL42
RISK MANAGEMENT AND FINANCIAL INSTRUMENTS (Details 6) - CAD CAD in Millions | Jun. 30, 2015 | Dec. 31, 2014 |
Fair Value of Derivatives | ||
Total net financial asset/(liability) | CAD (3,820) | CAD (2,364) |
Foreign Exchange Risk | ||
Fair Value of Derivatives | ||
Total net financial asset/(liability) | (2,403) | (1,433) |
Interest rate contracts | ||
Fair Value of Derivatives | ||
Total net financial asset/(liability) | (1,240) | (1,001) |
Commodity contracts | ||
Fair Value of Derivatives | ||
Total net financial asset/(liability) | (190) | 50 |
Other contracts | ||
Fair Value of Derivatives | ||
Total net financial asset/(liability) | 13 | 20 |
Total Gross Derivative Instruments | ||
Fair Value of Derivatives | ||
Current derivative assets, Total Gross Derivative Instruments | 326 | 568 |
Long-term derivative assets, Total Gross Derivative Instruments | 171 | 199 |
Current derivative liabilities, Total Gross Derivative Instruments | (1,274) | (1,020) |
Long-term derivative liabilities, Total Gross Derivative Instruments | (3,029) | (2,078) |
Total net financial asset/(liability) | (3,806) | (2,331) |
Total Gross Derivative Instruments | Foreign Exchange Risk | ||
Fair Value of Derivatives | ||
Current derivative assets, Total Gross Derivative Instruments | 13 | 13 |
Long-term derivative assets, Total Gross Derivative Instruments | 76 | 51 |
Current derivative liabilities, Total Gross Derivative Instruments | (446) | (301) |
Long-term derivative liabilities, Total Gross Derivative Instruments | (2,046) | (1,196) |
Total net financial asset/(liability) | (2,403) | (1,433) |
Total Gross Derivative Instruments | Interest rate contracts | ||
Fair Value of Derivatives | ||
Current derivative assets, Total Gross Derivative Instruments | 2 | 8 |
Long-term derivative assets, Total Gross Derivative Instruments | 5 | 5 |
Current derivative liabilities, Total Gross Derivative Instruments | (538) | (438) |
Long-term derivative liabilities, Total Gross Derivative Instruments | (709) | (576) |
Total net financial asset/(liability) | (1,240) | (1,001) |
Total Gross Derivative Instruments | Commodity contracts | ||
Fair Value of Derivatives | ||
Current derivative assets, Total Gross Derivative Instruments | 301 | 535 |
Long-term derivative assets, Total Gross Derivative Instruments | 85 | 135 |
Current derivative liabilities, Total Gross Derivative Instruments | (290) | (281) |
Long-term derivative liabilities, Total Gross Derivative Instruments | (272) | (306) |
Total net financial asset/(liability) | (176) | 83 |
Total Gross Derivative Instruments | Other contracts | ||
Fair Value of Derivatives | ||
Current derivative assets, Total Gross Derivative Instruments | 10 | 12 |
Long-term derivative assets, Total Gross Derivative Instruments | 5 | 8 |
Long-term derivative liabilities, Total Gross Derivative Instruments | (2) | |
Total net financial asset/(liability) | 13 | 20 |
Level 1 | ||
Fair Value of Derivatives | ||
Current derivative assets, Total Gross Derivative Instruments | 10 | 62 |
Current derivative liabilities, Total Gross Derivative Instruments | (10) | (28) |
Total net financial asset/(liability) | 34 | |
Level 1 | Commodity contracts | ||
Fair Value of Derivatives | ||
Current derivative assets, Total Gross Derivative Instruments | 10 | 62 |
Current derivative liabilities, Total Gross Derivative Instruments | (10) | (28) |
Total net financial asset/(liability) | 34 | |
Level 2 | ||
Fair Value of Derivatives | ||
Current derivative assets, Total Gross Derivative Instruments | 109 | 173 |
Long-term derivative assets, Total Gross Derivative Instruments | 97 | 86 |
Current derivative liabilities, Total Gross Derivative Instruments | (1,090) | (876) |
Long-term derivative liabilities, Total Gross Derivative Instruments | (2,848) | (1,897) |
Total net financial asset/(liability) | (3,732) | (2,514) |
Level 2 | Foreign Exchange Risk | ||
Fair Value of Derivatives | ||
Current derivative assets, Total Gross Derivative Instruments | 13 | 13 |
Long-term derivative assets, Total Gross Derivative Instruments | 76 | 51 |
Current derivative liabilities, Total Gross Derivative Instruments | (446) | (301) |
Long-term derivative liabilities, Total Gross Derivative Instruments | (2,046) | (1,196) |
Total net financial asset/(liability) | (2,403) | (1,433) |
Level 2 | Interest rate contracts | ||
Fair Value of Derivatives | ||
Current derivative assets, Total Gross Derivative Instruments | 2 | 8 |
Long-term derivative assets, Total Gross Derivative Instruments | 5 | 5 |
Current derivative liabilities, Total Gross Derivative Instruments | (538) | (438) |
Long-term derivative liabilities, Total Gross Derivative Instruments | (709) | (576) |
Total net financial asset/(liability) | (1,240) | (1,001) |
Level 2 | Commodity contracts | ||
Fair Value of Derivatives | ||
Current derivative assets, Total Gross Derivative Instruments | 84 | 140 |
Long-term derivative assets, Total Gross Derivative Instruments | 11 | 22 |
Current derivative liabilities, Total Gross Derivative Instruments | (106) | (137) |
Long-term derivative liabilities, Total Gross Derivative Instruments | (91) | (125) |
Total net financial asset/(liability) | (102) | (100) |
Level 2 | Other contracts | ||
Fair Value of Derivatives | ||
Current derivative assets, Total Gross Derivative Instruments | 10 | 12 |
Long-term derivative assets, Total Gross Derivative Instruments | 5 | 8 |
Long-term derivative liabilities, Total Gross Derivative Instruments | (2) | |
Total net financial asset/(liability) | 13 | 20 |
Level 3 | ||
Fair Value of Derivatives | ||
Current derivative assets, Total Gross Derivative Instruments | 207 | 333 |
Long-term derivative assets, Total Gross Derivative Instruments | 74 | 113 |
Current derivative liabilities, Total Gross Derivative Instruments | (174) | (116) |
Long-term derivative liabilities, Total Gross Derivative Instruments | (181) | (181) |
Total net financial asset/(liability) | (74) | 149 |
Level 3 | Commodity contracts | ||
Fair Value of Derivatives | ||
Current derivative assets, Total Gross Derivative Instruments | 207 | 333 |
Long-term derivative assets, Total Gross Derivative Instruments | 74 | 113 |
Current derivative liabilities, Total Gross Derivative Instruments | (174) | (116) |
Long-term derivative liabilities, Total Gross Derivative Instruments | (181) | (181) |
Total net financial asset/(liability) | CAD (74) | CAD 149 |
RISK MANAGEMENT AND FINANCIAL43
RISK MANAGEMENT AND FINANCIAL INSTRUMENTS (Details 7) CAD in Millions | 6 Months Ended | |
Jun. 30, 2015CADCAD / MMBTUCAD / galCAD / bblCAD / MWh | Dec. 31, 2014CAD | |
Significant unobservable inputs used in the fair value measurement of Level 3 derivative instruments | ||
Fair value | CAD (3,820) | CAD (2,364) |
Level 3 | ||
Significant unobservable inputs used in the fair value measurement of Level 3 derivative instruments | ||
Fair value | (74) | CAD 149 |
Market approach valuation technique | Level 3 | Commodity Contracts - Financial | Natural gas | ||
Significant unobservable inputs used in the fair value measurement of Level 3 derivative instruments | ||
Fair value | CAD (1) | |
Market approach valuation technique | Level 3 | Commodity Contracts - Financial | Natural gas | Minimum | ||
Significant unobservable inputs used in the fair value measurement of Level 3 derivative instruments | ||
Forward price | CAD / MMBTU | 3.17 | |
Market approach valuation technique | Level 3 | Commodity Contracts - Financial | Natural gas | Maximum | ||
Significant unobservable inputs used in the fair value measurement of Level 3 derivative instruments | ||
Forward price | CAD / MMBTU | 4.48 | |
Market approach valuation technique | Level 3 | Commodity Contracts - Financial | Natural gas | Weighted average price | ||
Significant unobservable inputs used in the fair value measurement of Level 3 derivative instruments | ||
Forward price | CAD / MMBTU | 3.72 | |
Market approach valuation technique | Level 3 | Commodity Contracts - Financial | Crude oil | ||
Significant unobservable inputs used in the fair value measurement of Level 3 derivative instruments | ||
Fair value | CAD (3) | |
Market approach valuation technique | Level 3 | Commodity Contracts - Financial | Crude oil | Minimum | ||
Significant unobservable inputs used in the fair value measurement of Level 3 derivative instruments | ||
Forward price | CAD / bbl | 73.63 | |
Market approach valuation technique | Level 3 | Commodity Contracts - Financial | Crude oil | Maximum | ||
Significant unobservable inputs used in the fair value measurement of Level 3 derivative instruments | ||
Forward price | CAD / bbl | 75.37 | |
Market approach valuation technique | Level 3 | Commodity Contracts - Financial | Crude oil | Weighted average price | ||
Significant unobservable inputs used in the fair value measurement of Level 3 derivative instruments | ||
Forward price | CAD / bbl | 74.52 | |
Market approach valuation technique | Level 3 | Commodity Contracts - Financial | NGL | ||
Significant unobservable inputs used in the fair value measurement of Level 3 derivative instruments | ||
Fair value | CAD 27 | |
Market approach valuation technique | Level 3 | Commodity Contracts - Financial | NGL | Minimum | ||
Significant unobservable inputs used in the fair value measurement of Level 3 derivative instruments | ||
Forward price | CAD / gal | 0.25 | |
Market approach valuation technique | Level 3 | Commodity Contracts - Financial | NGL | Maximum | ||
Significant unobservable inputs used in the fair value measurement of Level 3 derivative instruments | ||
Forward price | CAD / gal | 1.56 | |
Market approach valuation technique | Level 3 | Commodity Contracts - Financial | NGL | Weighted average price | ||
Significant unobservable inputs used in the fair value measurement of Level 3 derivative instruments | ||
Forward price | CAD / gal | 1.13 | |
Market approach valuation technique | Level 3 | Commodity Contracts - Financial | Power | ||
Significant unobservable inputs used in the fair value measurement of Level 3 derivative instruments | ||
Fair value | CAD (149) | |
Market approach valuation technique | Level 3 | Commodity Contracts - Financial | Power | Minimum | ||
Significant unobservable inputs used in the fair value measurement of Level 3 derivative instruments | ||
Forward price | CAD / MWh | 30.50 | |
Market approach valuation technique | Level 3 | Commodity Contracts - Financial | Power | Maximum | ||
Significant unobservable inputs used in the fair value measurement of Level 3 derivative instruments | ||
Forward price | CAD / MWh | 93 | |
Market approach valuation technique | Level 3 | Commodity Contracts - Financial | Power | Weighted average price | ||
Significant unobservable inputs used in the fair value measurement of Level 3 derivative instruments | ||
Forward price | CAD / MWh | 56.37 | |
Market approach valuation technique | Level 3 | Commodity Contracts - Physical | Natural gas | ||
Significant unobservable inputs used in the fair value measurement of Level 3 derivative instruments | ||
Fair value | CAD (30) | |
Market approach valuation technique | Level 3 | Commodity Contracts - Physical | Natural gas | Minimum | ||
Significant unobservable inputs used in the fair value measurement of Level 3 derivative instruments | ||
Forward price | CAD / MMBTU | 2.23 | |
Market approach valuation technique | Level 3 | Commodity Contracts - Physical | Natural gas | Maximum | ||
Significant unobservable inputs used in the fair value measurement of Level 3 derivative instruments | ||
Forward price | CAD / MMBTU | 5.36 | |
Market approach valuation technique | Level 3 | Commodity Contracts - Physical | Natural gas | Weighted average price | ||
Significant unobservable inputs used in the fair value measurement of Level 3 derivative instruments | ||
Forward price | CAD / MMBTU | 3.55 | |
Market approach valuation technique | Level 3 | Commodity Contracts - Physical | Crude oil | ||
Significant unobservable inputs used in the fair value measurement of Level 3 derivative instruments | ||
Fair value | CAD (25) | |
Market approach valuation technique | Level 3 | Commodity Contracts - Physical | Crude oil | Minimum | ||
Significant unobservable inputs used in the fair value measurement of Level 3 derivative instruments | ||
Forward price | CAD / bbl | 49.82 | |
Market approach valuation technique | Level 3 | Commodity Contracts - Physical | Crude oil | Maximum | ||
Significant unobservable inputs used in the fair value measurement of Level 3 derivative instruments | ||
Forward price | CAD / bbl | 118.91 | |
Market approach valuation technique | Level 3 | Commodity Contracts - Physical | Crude oil | Weighted average price | ||
Significant unobservable inputs used in the fair value measurement of Level 3 derivative instruments | ||
Forward price | CAD / bbl | 73.17 | |
Market approach valuation technique | Level 3 | Commodity Contracts - Physical | NGL | ||
Significant unobservable inputs used in the fair value measurement of Level 3 derivative instruments | ||
Fair value | CAD 12 | |
Market approach valuation technique | Level 3 | Commodity Contracts - Physical | NGL | Minimum | ||
Significant unobservable inputs used in the fair value measurement of Level 3 derivative instruments | ||
Forward price | CAD / gal | 0.24 | |
Market approach valuation technique | Level 3 | Commodity Contracts - Physical | NGL | Maximum | ||
Significant unobservable inputs used in the fair value measurement of Level 3 derivative instruments | ||
Forward price | CAD / gal | 1.64 | |
Market approach valuation technique | Level 3 | Commodity Contracts - Physical | NGL | Weighted average price | ||
Significant unobservable inputs used in the fair value measurement of Level 3 derivative instruments | ||
Forward price | CAD / gal | 0.96 | |
Option model valuation technique | Level 3 | Commodity Options | Crude oil | ||
Significant unobservable inputs used in the fair value measurement of Level 3 derivative instruments | ||
Fair value | CAD 27 | |
Option model valuation technique | Level 3 | Commodity Options | Crude oil | Minimum | ||
Significant unobservable inputs used in the fair value measurement of Level 3 derivative instruments | ||
Option Volatility (as a percent) | 19.00% | |
Option model valuation technique | Level 3 | Commodity Options | Crude oil | Maximum | ||
Significant unobservable inputs used in the fair value measurement of Level 3 derivative instruments | ||
Option Volatility (as a percent) | 28.00% | |
Option model valuation technique | Level 3 | Commodity Options | Crude oil | Weighted average price | ||
Significant unobservable inputs used in the fair value measurement of Level 3 derivative instruments | ||
Option Volatility (as a percent) | 25.00% | |
Option model valuation technique | Level 3 | Commodity Options | NGL | ||
Significant unobservable inputs used in the fair value measurement of Level 3 derivative instruments | ||
Fair value | CAD 68 | |
Option model valuation technique | Level 3 | Commodity Options | NGL | Minimum | ||
Significant unobservable inputs used in the fair value measurement of Level 3 derivative instruments | ||
Option Volatility (as a percent) | 10.00% | |
Option model valuation technique | Level 3 | Commodity Options | NGL | Maximum | ||
Significant unobservable inputs used in the fair value measurement of Level 3 derivative instruments | ||
Option Volatility (as a percent) | 62.00% | |
Option model valuation technique | Level 3 | Commodity Options | NGL | Weighted average price | ||
Significant unobservable inputs used in the fair value measurement of Level 3 derivative instruments | ||
Option Volatility (as a percent) | 39.00% |
RISK MANAGEMENT AND FINANCIAL44
RISK MANAGEMENT AND FINANCIAL INSTRUMENTS (Details 8) - CAD CAD in Millions | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Dec. 31, 2014 | |
Changes in net fair value of derivative assets and liabilities classified as Level 3 in the fair value hierarchy | |||
Level 3 net derivative liability at beginning of period | CAD 149 | CAD (164) | |
Total gains/(loss) | |||
Included in earnings | (49) | (18) | |
Included in OCI | (22) | ||
Settlements | (152) | 10 | |
Level 3 net derivative liability at end of period | (74) | (172) | |
Amount of transfer of fair value of liabilities between levels | 0 | 0 | |
Net Investment Hedges unrealized translation loss on foreign exchange contracts | 279 | (9) | |
Net Investment Hedges unrealized loss on change in fair value on foreign exchange contracts | 97 | 4 | |
Net Investment Hedges realized gains on settlement on forward exchange contracts | 7 | 5 | |
Net Investment Hedges amount of ineffectiveness | 0 | CAD 0 | |
Fair Value of Other Financial Instruments | |||
Equity investments at carrying value | 121 | CAD 99 | |
Investments held in trust | CAD 22 | 0 | |
Preference shares | Minimum | |||
Fair Value of Other Financial Instruments | |||
Cumulative dividends based on average yield of Government of Canada bonds, maturity period of bonds | 10 years | ||
Cumulative dividends based on average yield of Government of Canada bonds, spread over reference rate (as a percent) | 4.30% | ||
Preference shares | Maximum | |||
Fair Value of Other Financial Instruments | |||
Cumulative dividends based on average yield of Government of Canada bonds, spread over reference rate (as a percent) | 4.40% | ||
Carrying value | |||
Fair Value of Other Financial Instruments | |||
Long-term debt | CAD 37,373 | 34,427 | |
Carrying value | Preference shares | |||
Fair Value of Other Financial Instruments | |||
Held to maturity preferred share investment | 350 | 323 | |
Total Gross Derivative Instruments | |||
Fair Value of Other Financial Instruments | |||
Long-term debt | 38,484 | 36,637 | |
Total Gross Derivative Instruments | Preference shares | |||
Fair Value of Other Financial Instruments | |||
Held to maturity preferred share investment | CAD 580 | CAD 580 |
INCOME TAXES (Details)
INCOME TAXES (Details) - CAD CAD in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
INCOME TAXES | ||||
Effective income tax rate (as a percent) | 35.40% | 24.90% | 35.60% | 23.50% |
Income tax expense from intercompany transfer | CAD 39 |
RETIREMENT AND POSTRETIREMENT46
RETIREMENT AND POSTRETIREMENT BENEFITS (Details) CAD in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015CADitem | Jun. 30, 2014CAD | Jun. 30, 2015CADitem | Jun. 30, 2014CAD | |
RETIREMENT AND POSTRETIREMENT BENEFITS | ||||
Number of registered pension plans | item | 3 | 3 | ||
Number of supplemental pension plans | item | 4 | 4 | ||
Change in accrued benefit obligation | ||||
Offsetting regulatory liabilities | CAD 0 | CAD 1 | CAD 0 | CAD 3 |
Net Benefit Costs Recognized | ||||
Benefits earned during the period | 44 | 29 | 88 | 59 |
Interest cost on projected benefit obligations | 26 | 26 | 53 | 52 |
Expected return on plan assets | (37) | (32) | (73) | (64) |
Amortization of prior service costs | 1 | 1 | 1 | 1 |
Amortization of actuarial loss | 12 | 7 | 24 | 14 |
Net benefit costs on an accrual basis | 46 | 31 | 93 | 62 |
Other Postretirement Plans | ||||
Net Benefit Costs Recognized | ||||
Net benefit costs on an accrual basis | CAD 4 | CAD 4 | CAD 7 | CAD 8 |
CONTINGENCIES (Details)
CONTINGENCIES (Details) CAD in Millions, $ in Millions | Jul. 26, 2010mikmbbl | Jun. 30, 2015USD ($)aitem | Jun. 30, 2015USD ($)aitem | Jun. 30, 2015CADitem | Mar. 31, 2015 | Jan. 02, 2015 | Dec. 31, 2014 | Apr. 30, 2011USD ($) |
CONTINGENCIES | ||||||||
Aggregate limited amount for pollution liability under insurance program | $ 860 | $ 860 | ||||||
EEP | ||||||||
CONTINGENCIES | ||||||||
Ownership interest (as a percent) | 35.90% | 35.90% | 35.90% | 35.90% | 36.60% | 33.70% | ||
Line 6B Crude Oil Release | ||||||||
CONTINGENCIES | ||||||||
Estimated cost | $ 1,200 | $ 1,200 | ||||||
Estimated cost, net of tax | CAD | CAD 193 | |||||||
Amount of to date insurance claim recorded | 547 | $ 547 | ||||||
Amount of to date insurance claim recorded, net of tax | CAD | CAD 80 | |||||||
Line 6B Crude Oil Release | EEP | ||||||||
CONTINGENCIES | ||||||||
Estimated volume of oil released (in barrels) | bbl | 20,000 | |||||||
Area affected by released crude oil | 38 | |||||||
Minimum acres of wetland provided through restoration | a | 300 | |||||||
Payment for mitigation of impacts on banks, bottomlands and watershed | $ 5 | |||||||
Reimbursement payments to date | 12 | 12 | ||||||
Estimated fine or penalty amount | 48 | 48 | ||||||
Aggregate limited amount for pollution liability under insurance program | $ 650 | |||||||
Expected insurance recovery | $ 650 | $ 650 | ||||||
Number of actions or claims filed | item | 5 | 5 | 5 | |||||
Minimum amount of civil penalties which may be assessed | $ 40 | $ 40 | ||||||
Line 6A Crude Oil Release | ||||||||
CONTINGENCIES | ||||||||
Number of actions or claims filed | item | 1 | 1 | 1 | |||||
Environmental Liabilities | ||||||||
CONTINGENCIES | ||||||||
Estimated fine or penalty amount | $ 3.9 | $ 3.9 | ||||||
Amount of restoration land required | a | 175 |