12. Property, plant and equipment (continued)
a. Impairment on gathering, treatment and compression assets As at March 31, 2016, as a result of a decline in natural gas liquid prices, the Corporation has recorded an overall impairment on its gas gathering and processing assets of $6 million. 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 losses have been recognized within net income, with $3 million recognized in both the current and prior period. Future natural gas liquid prices are the main source of estimation uncertainty in determining the recoverable amount of the Corporation’s gas gathering and processing assets. As at March 31, 2016, a five per cent increase in future natural gas liquid prices would have increased the recoverable amount by $1 million and reduced the impairment loss recognized in the period by $1 million. In future periods, any increases to future natural gas liquid prices will result in the reversal of previously incurred impairment losses, up to the carrying value of the associated gas gathering and compression assets. b. Impairment on distribution assets As at March 31, 2016, as a result of lower than expected economic performance, the Corporation has recorded a $3 million impairment loss on its distribution 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 6.1%, and adjusted for future market prices. The impairment loss has been recognized within net income during the period. 13. Short-term debt The Corporation’s short-term debt is unsecured. As at March 31, 2016, short-term debt of $299 million (2014 – $299 million) was due to the Province of Saskatchewan’s General Revenue Fund with an average interest rate of 0.6% (2014 – 1.0%).
14. Trade and other payables
March
December 31, 2014
(millions)
31, 2016
Trade payables Interest payable Other payables
$ 83
$ 65
9
10 30
25
$ 117
$ 105
15. Long-term debt
March
December 31, 2014
(millions)
31, 2016
Balance, beginning of period
$ 762
$ 958
Proceeds
246
62
Repayments
(50)
(50)
Balance, end of period
$ 958
$ 970
72
Consolidated Financial Statements
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