2004 Crown Investments Corporation of Saskatchewan Annual Report

Notes to Consolidated Financial StatementsDecember 31, 200410. Long-Term Debt (continued)There is a requirement attached to certain interest-bearing issues from the GRF to make annual paymentsinto sinking funds in amounts representing 1 per cent to 3 per cent of the original issue. The cumulativeannual payments plus interest earned are used for the retirement of debt issues, upon maturity, with the GRFon a net basis. Sinking funds are valued at amortized cost. When there has been a decline in the value of theinvestment of the sinking fund that is not considered temporary, the investment is written down to its fairvalue.Principal repayments (including sinking funds) due in each of the next five years are as follows(thousands of dollars):20052006200720082009$ 228,759248,229170,496441,43875,639Long-term debt payable in United States dollars has been translated into Canadian dollars at an averageyear-end exchange rate of 1.211 (2003 - 1.299).11. Deferred Revenue and Other Liabilities(thousands of dollars)2004 2003Provision for unpaid insurance claimsCross currency swapsEnvironmental remediation liabilitiesAsset retirement obligationOther liabilitiesDeferred income$232,56061,97653,62629,14015,7388,223$211,12821,84153,62627,00413,7102,680$401,263$329,989The asset retirement obligation, environmental remediation liabilities and provision for unpaid insuranceclaims are based on known facts and interpretation of circumstances that are influenced by a variety offactors. As a result, the recorded amount of these liabilities could change by a material amount in the nearterm.12. Equity AdvancesThe Corporation does not have share capital. However, the Corporation has received advances from the GRFto form its equity capitalization. The advances are an equity investment in the Corporation by the GRF.80