2014 SaskEnergy Annual Report

13. Property, plant and equipment

Gathering, Treatment

Vehicles, Equipment

Transmission

and

Computer Construction

(millions)

Distribution and Storage Compression and Other

Hardware

in Progress

Total

Cost Balance, January 1, 2013 $ 924

$ 972

$ 252

$ 140

$ 14

$ 41

$ 2,343

Additions Disposals

143

62

16

9

2 –

210

442

(2)

(3)

(1)

(1)

(7)

Classified as assets held for sale

(4)

(6)

– –

– –

– –

(10)

Transfers

(180)

(180)

Balance, December 31, 2013

1,061

1,025

267

148

16

71

2,588

Additions Disposals Impairment

145

150

36

10

2 – – –

293

636

(3)

(10)

(1) (3)

(5)

(3)

(22)

– –

– –

(3)

Transfers

(10)

10

(320)

(320)

Balance, December 31, 2014

1,203

1,155

309

153

18

41

2,879

Accumulated depreciation Balance, January 1, 2013

330

330

110

63

9 2 –

– – –

842

Depreciation

25

30

9 –

8

74

Disposals

(2)

(2)

(2)

(6)

Classified as assets held for sale

(2)

(2)

– –

(4)

Balance, December 31, 2013

351

356

119

69

11

906

Depreciation

25

31

11

8

3 –

– – –

78

Disposals

(3)

(9)

(5)

(17)

Balance, December 31, 2014

373

378

130

72

14

967

Carrying amounts Balance, December 31, 2013 $ 710

$ 669

$ 148

$ 79

$

5

$ 71

$ 1,682

Balance, December 31, 2014 $ 830

$ 777

$ 179

$ 81

$

4

$ 41

$ 1,912

At December 31, 2014, as a result of a decline in natural gas liquid prices, the Corporation has incurred a $3 million impairment loss on its gas gathering and processing assets. The impairment was recognized as the carrying value of the assets exceeded the recoverable amount. The recoverable amount was the value in use determined using cash flows attributed to probable production, discounted at 6.0%, and adjusted for future market prices. The impairment loss has been recognized within net income for the year. 14. Short-term debt The Corporation’s short-term debt is unsecured. At year end, short-term debt of $299 million (2013 – $380 million) was due to the Province of Saskatchewan’s General Revenue Fund with an average interest rate of 1.0% (2013 – 1.8%).

58

Consolidated Financial Statements

Made with FlippingBook Ebook Creator