5. Financial and derivative instruments
As at March
As at December
31, 2015
31, 2014
Classifi- Fair Value Carrying cation Hierarchy Amount
Fair
Carrying Amount
Fair
(millions)
Value
Value
Financial and derivative assets Cash Trade and other receivables
$
10
$
10
FVTPL
n/a n/a
$
5
$
5
158 100
158 100
LAR
148
148
Debt retirement funds
FVTPL Level 2
93
93
Fair value of derivative instrument assets
16
16
FVTPL Level 2
21
21
Financial and derivative liabilities Short-term debt
200
200
OL OL OL OL
n/a n/a n/a
299 117
299 117
86 10
86 10
Trade and other payables
Dividends payable
3
3
1,020
1,259
Long-term debt
Level 2
958
1,145
Fair value of derivative instrument liabilities
97
97
FVTPL Level 2
107
107
Classification details: FVTPL - fair value through profit or loss LAR - loans and receivables OL - other liabilities
The fair value hierarchy is not applicable where the carrying amount approximates fair value due to the short-term nature of the financial instrument.
Notional values are an approximation of future undiscounted net cash flows. For physical natural gas contracts, the notional value is based on the contract price. For natural gas price swaps, the notional value is the difference between the contract price and the market price. Where contract prices are referenced to an index price that has not yet been fixed, the market price is used to estimate the contract price. As at March 31, 2015 natural gas derivative instruments had the following fair values, notional values, and maturities:
(millions)
2016
2017
2018
2019
2020
Total
Physical natural gas contracts Fair value
$
(59)
$
(39)
$
(14) (81)
$
(4)
$
(2)
$
-
(282)
Notional value
(123)
(50)
(24)
(4)
Natural gas price swaps Fair value
(22) (22)
(11) (11)
(7) (7)
(4) (4)
- -
- -
Notional value
Total Fair value
$ $
(81)
$ $
(50)
$ $
(21) (88)
$ $
(8)
$ $
(2)
$ $
-
(304)
Notional value
(134)
(54)
(24)
(4)
Fair value - increase (decrease) in net income Notional value - estimated undiscounted net cash inflow (outflow)
19
2015 FIRST QUARTER REPORT
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