2015-16 SaskEnergy Annual Report

4. Capital management (continued) The Corporation’s objectives, policies and processes for managing its capital were consistent with the prior period. The Corporation complied with all externally imposed requirements for its capital throughout the period, which include compliance with the approved borrowing limits for short-term and long-term debt, and the annual investment requirement to the debt retirement funds.

5. Trade and other receivables

March

December 31, 2014

(millions)

31, 2016

Unbilled revenue Trade receivables Other receivables

$ 71

$ 35

60 21

62 13

152

110

Allowance for doubtful accounts

(4)

(6)

$ 148

$ 104

6. Natural gas in storage held for resale

March

December 31, 2014

(millions)

31, 2016

Cost

$ 163

$ 120

Revaluation to net realizable value

(23)

(34)

$ 140

$ 86

With the decline in natural gas market prices over recent years, the net realizable value of natural gas in storage as at March 31, 2016 was $34 million below cost (2014 – $23 million). As at March 31, 2016, the Corporation expects that $44 million of the current inventory value will be sold or consumed within the next fiscal year and $42 million of the current inventory value will be sold or consumed after more than one fiscal year. 7. Inventory of supplies The cost of inventory of supplies recognized as operating and maintenance expense during the period ended March 31, 2016 was $19 million (2014 – $17 million). There was no revaluation of inventory of supplies and no reversal of any prior period revaluation during the period.

8. Debt retirement funds

March

December 31, 2014

(millions)

31, 2016

Balance, beginning of period

$ 78

$ 93

Installments Redemptions

10

12

(6)

(7)

Earnings

4 7

6

Change in fair value Balance, end of period

(2)

93

102

Less: Current portion of debt retirement funds

(7)

(10)

$ 86

$ 92

64

Consolidated Financial Statements

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