2004 Crown Investments Corporation of Saskatchewan Annual Report

Notes to Consolidated Financial StatementsDecember 31, 200422. LeasesFuture minimum lease payments for operating leases entered into by the Corporation, as lessee, are asfollows (thousands of dollars):20052006200720082009Thereafter23. Related Party Transactions$$64,85157,02227,35824,40117,0885,713196,433Included in these consolidated financial statements are transactions with various Saskatchewan Crowncorporations, departments, agencies, boards and commissions related to the Corporation by virtue ofcommon control by the Government of Saskatchewan and non-Crown corporations and enterprisessubject to joint control and significant influence by the Government of Saskatchewan (collectively referredto as “related parties”).Routine operating transactions with related parties are settled at prevailing market prices under normaltrade terms. These transactions and amounts outstanding at year end are as follows(millions of dollars):Accounts receivableAccounts payable and accrued liabilitiesSales of products and servicesOperating costsCosts capitalizedDeferred revenue2004 2003$ 13.0 $7.8144.0170.31.5-9.82.7112.9155.45.04.3On April 1, 2004 substantially all the Corporations’ property holdings were transferred at book value to theGeneral Revenue Fund, for cancellation of GRF short and long-term debt. Carrying value of the assets andliabilities transferred were as follows:Property holdingsAccounts receivableAccounts payableDeferred revenueNotes payableLong-term debt$153.00.52.14.027.0125.0The net liability of $4.6 million will be settled by the transfer of buildings under construction at the time ofcompletion.During 2004, the Corporation received $Nil (2003 - $6.6 million) in grants from the GRF. At December 31, 2004the Corporation held $4.2 million (2003 - $3.6 million) in Government of Saskatchewan bonds. In addition,the Corporation pays Saskatchewan Provincial Sales Tax to the Saskatchewan Department of Finance on all itstaxable purchases. Taxes paid are recorded as part of the cost of these purchases.Other transactions and amounts due to and from related parties and the terms of settlement are describedseparately in these consolidated financial statements and the notes thereto.88