6. Financial and derivative instruments
As at September
As at December
30, 2015
31, 2014
Classifi- Fair Value Carrying cation Hierarchy Amount
Fair
Carrying Amount
Fair
(millions)
Value
Value
Financial and derivative assets Cash Trade and other receivables
$
1
$
1
FVTPL
n/a n/a
$
5
$
5
75
75
LAR
148
148
102
102
Debt retirement funds
FVTPL Level 2
93
93
Fair value of derivative instrument assets
9
9
FVTPL Level 2
21
21
Financial and derivative liabilities Short-term debt
229 106
229 106
OL OL OL OL
n/a n/a n/a
299 117
299 117
Trade and other payables
10
10
Dividends payable
3
3
1,020
1,182
Long-term debt
Level 2
958
1,145
Fair value of derivative instrument liabilities
89
89
FVTPL Level 2
107
107
Classification details: FVTPL - fair value through profit or loss LAR - loans and receivables OL - other liabilities
The fair value hierarchy is not applicable where the carrying amount approximates fair value due to the short-term nature of the financial instrument.
Notional values are an approximation of future undiscounted net cash flows. For physical natural gas contracts, the notional value is based on the contract price. For natural gas price swaps, the notional value is the difference between the contract price and the market price. Where contract prices are referenced to an index price that has not yet been fixed, the market price is used to estimate the contract price. As at September 30, 2015 natural gas derivative instruments had the following fair values, notional values, and maturities:
(millions)
2016
2017
2018
2019
2020
Total
Physical natural gas contracts Fair value
$
(58)
$
(39)
$
(12) (84)
$
(6)
$
(1)
$
-
(276)
Notional value
(134)
(46)
(17)
5
Natural gas price swaps Fair value
(22) (22)
(13) (13)
(8) (8)
(1) (1)
- -
- -
Notional value
Total Fair value
$ $
(80)
$ $
(52)
$ $
(20) (92)
$ $
(7)
$ $
(1)
$ $
-
(298)
Notional value
(147)
(47)
(17)
5
Fair value - increase (decrease) in net income Notional value - estimated undiscounted net cash inflow (outflow)
21
2015 THIRD QUARTER REPORT
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