Notes to the Consolidated Financial Statements
67
6. Debt Retirement Funds (millions)
2026
2025
$
197 $
Balance, beginning of year
179
19
Installments Redemptions
16
(44)
(10)
4
Earnings
6 6
(3)
Change in fair value through OCI
173
Balance, end of year
197
(2)
Less: Current portion of debt retirement funds
(45)
$
171 $
152
OCI - Other Comprehensive Income
The investments held in debt retirement funds are primarily Federal and Provincial Government debt instruments. The average return on these investments is 2.4 per cent for the period (2025 - 3.4 per cent). As at March 31, 2026, scheduled installment payments are as follows for the next five fiscal years: (millions) 2027 2028 2029 2030 2031 Installments $ 19 $ 19 $ 19 $ 19 $ 19 Unrealized market value adjustments through OCI represent the income impact of measuring debt retirement funds at fair value subsequent to initial recognition. The adjustment represents the change in the carrying amount of debt retirement funds during the period and is dependent on the market prices of the financial instruments held in the Debt Retirement Funds at the end of the reporting period.
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