Notes to the Consolidated Financial Statements (unaudited)
As at December 31, 2023
As at March 31, 2023
(millions)
$
10
Lease liabilities, beginning of year
$
10
5
Net additions
4
(3)
Principal repayment of lease liability
(4)
$
12
Lease liabilities, end of year
$
10
The weighted average discount rate applied to computer leases is 4.0 per cent and vehicles is 3.5 per cent based on the rates implicit in the agreements. The weighted average discount rate applied to building leases is 4.0 per cent based on the Corporation’s incremental borrowing rate.
As at December 31, 2023, scheduled future minimum lease payments and the present value of the finance lease obligation are as follows for the next five fiscal years:
(millions)
2024
2025
2026
2027
2028
Future minimum lease payments Present value of lease liability
$ $
5 5
$ $
3 3
$ $
2 2
$ $
1 1
$ $
2 1
10.
LONG-TERM DEBT
During the fiscal year, the Corporation issued $125 million in long-term debt in three increments. Factoring in premiums, discounts and commissions, net long-term debt issuances were $120 million. The first $50 million increment was issued at a discount of $4 million with an interest rate of 3.8 per cent maturing in 2062. The second $25 million increment was issued at no premium or discount with an interest rate of 3.9 per cent maturing in 2033. The third $50 million increment was issued at no premium or discount with an interest rate of 4.2 per cent maturing in 2054.
11.
COMMITMENTS AND CONTINGENCIES
a.
Commitments
As at December 31, 2023, the Corporation had $77 million (March 31, 2023 - $100 million) of outstanding contractual commitments for the procurement of goods and services in the future.
During the period, the Corporation entered into commodity contracts for the physical purchase of natural gas that qualify as own-use contracts. As at December 31, 2023, own-use natural gas derivative instruments had the following notional values and maturities for the next five fiscal years:
(millions)
2024
2025
2026
2027
2028 Thereafter
OWN-USE PHYSICAL NATURAL GAS CONTRACTS
Notional value
$
20
$
85
$
89
$
94
$
86
$
256
Notional value - estimated undiscounted cash outflow
b.
Contingencies
The Corporation is involved in litigation claims, which the Corporation does not expect will result in any material financial impact.
27
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