6. Natural gas in storage held for resale (millions)
2014
2013
Cost
$ 219
$ 163
Revaluation to net realizable value
(11)
(23)
$ 208
$ 140
With the decline in natural gas market prices over recent years, the net realizable value of natural gas in storage at the end of the year was $23 million below cost (2013 – $11 million). As at December 31, 2014, the Corporation expects that $86 million of the current inventory value will be sold or consumed within the next year and $54 million of the current inventory value will be sold or consumed after more than one year. 7. Inventory of supplies The cost of inventory of supplies recognized as operating and maintenance expense during the year was $17 million (2013 – $18 million). There was no revaluation of inventory of supplies and no reversal of any prior year revaluation during the year.
8. Debt retirement funds (millions)
2014
2013
Balance, beginning of year
$ 76
$ 78
Installments Redemptions
8
10
(3)
(6)
Earnings
4
4 7
Change in fair value Balance, end of year
(7)
78
93
Less: Current portion of debt retirement funds
(6)
(7)
$ 72
$ 86
The investments held in debt retirement funds are primarily Federal and Provincial Government debt instruments. The yield on these investments was 4.3% for the year (2013 – 5.0%). As at December 31, 2014 amounts required to be invested in debt retirement funds in each of the next five years were as follows: (millions) 2015 2016 2017 2018 2019
Installments
$ 10
$
9
$
8
$
8
$
8
9. Assets held for sale In the prior year, the Corporation had classified several non-current assets as held for sale within its consolidated statement of financial position. During 2014, the Corporation sold these assets resulting in a total gain on sale of $3 million included within net income.
52
Consolidated Financial Statements
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