2004 Crown Investments Corporation of Saskatchewan Annual Report

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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
Notes to Consolidated Financial StatementsDecember 31, 200424. Joint VenturesThe Corporation has joint control over the operating, investing and financing policies of Canadian PowerConsultants, Centennial Foods Partnership, Cory Cogeneration Fund Corporation, Cory Cogeneration JointVenture, Foragen Technologies Limited Partnership, Heritage Gas Limited, Hypor B.V., Hypor LP, MeadowLake Pulp Limited Partnership, and NewGrade Energy Inc. The Corporation’s pro-rata share of its interest inthese joint ventures is as follows (thousands of dollars):2004 2003Current assetsLong-term assetsCurrent liabilitiesLong-term liabilitiesRevenueExpensesNet earningsCash provided by operating activitiesCash used in financing activitiesCash provided by (used in) investing activities$170,800328,986108,445155,490808,268771,93736,331106,135151,626401,27490,719171,142692,074659,38132,69372,387(83,224) (21,662)1,332(35,416)$25. Employee Future BenefitsThe Corporation has three defined benefit pension plans for certain of its employees that have been closedto new membership since 1980. Current service costs of this plan are charged to earnings on the basis ofactuarial valuations.The actuarial valuations include a provision for uncommitted and ad hoc benefit increases, and aremeasured using managements’ best estimates based on assumptions that reflect the most probable setof economic circumstances and planned courses of action. The estimate, therefore, involves risks that theactual amount may differ materially from the estimate. Results from the latest valuations for SaskTel andSGI are projected to December 31, 2004. The major assumptions used in the valuations are as follows:Economic assumptions:2004SaskTel SGI SaskPowerDiscount rate - end of periodExpected return on plan assetsInflation rateExpected salary increasePost-retirement indexLast actuarial valuation5.90%7.00%1.90%1.90%100% of CPI12/31/035.60%6.75%3.00%4.00%50% of CPI12/31/026.25%7.00%3.00%4.00%50% of CPI09/30/0489
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2004 Financial HighlightsCrown Sect
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Table Of Contents2004 HighlightsLet
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Chair’s MessageSaskatchewan’s C
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Corporate ProfileCIC is the financi
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Corporate ProfileCIC ManagementThe
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Corporate ProfileFinancial and Publ
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Corporate ProfileCIC’s Holdings20
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Corporate ProfileSASKATCHEWAN GOVER
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Corporate ProfileSaskatchewan Telec
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Policy and ProgramsUtility Bundle C
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Policy and ProgramsCommitment to Gr
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Policy and ProgramsCommitment to Yo
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GovernanceFor the purposes of this
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Strategic Direction and Performance
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Page 41 and 42: Management’s Discussion and Analy
Page 43 and 44: MANAGEMENT’S DISCUSSION AND ANALY
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Page 68 and 69: Consolidated Statement of Financial
Page 70 and 71: Consolidated Statement of Cash Flow
Page 72 and 73: Notes to Consolidated Financial Sta
Page 96: Notes to Consolidated Financial Sta
Page 99 and 100: Non-Consolidated Statement of Finan
Page 101 and 102: Non-Consolidated Statement of Cash
Page 103 and 104: Notes to Non-Consolidated Financial
Page 105 and 106: Notes to Non-Consolidated Financial
Page 107: Notes to Non-Consolidated Financial
Page 110: Pat AtkinsonMinisterPrinted in Sask
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2004 Crown Investments Corporation of Saskatchewan Annual Report

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