STRENGTH & STABILITY

Recommendations

Info

About this document Throughout this MD&A, the terms, we, us, our and TransCanada mean TransCanada Corporation and its subsidiaries. Abbreviations and acronyms that are not defined in the document are defined in the glossary on page 118. All information is as of February 10, 2016 and all amounts are in Canadian dollars, unless noted otherwise. FORWARD-LOOKING INFORMATION We disclose forward-looking information to help current and potential investors understand management's assessment of our future plans and financial outlook, and our future prospects overall. Statements that are forward-looking are based on certain assumptions and on what we know and expect today and generally include words like anticipate, expect, believe, may, will, should, estimate or other similar words. Forward-looking statements in this MD&A may include information about the following, among other things: • anticipated business prospects • our financial and operational performance, including the performance of our subsidiaries • expectations or projections about strategies and goals for growth and expansion • expected cash flows and future financing options available to us • expected costs for planned projects, including projects under construction and in development • expected schedules for planned projects (including anticipated construction and completion dates) • expected regulatory processes and outcomes • expected common share purchases under our normal course issuer bid • expected impact of regulatory outcomes • expected outcomes with respect to legal proceedings, including arbitration and insurance claims • expected capital expenditures and contractual obligations • expected operating and financial results • the expected impact of future accounting changes, commitments and contingent liabilities • expected industry, market and economic conditions. Forward-looking statements do not guarantee future performance. Actual events and results could be significantly different because of assumptions, risks or uncertainties related to our business or events that happen after the date of this MD&A. Our forward-looking information is based on the following key assumptions, and subject to the following risks and uncertainties: Assumptions • inflation rates, commodity prices and capacity prices • timing of financings and hedging • regulatory decisions and outcomes • foreign exchange rates • interest rates • tax rates • planned and unplanned outages and the use of our pipeline and energy assets • integrity and reliability of our assets • access to capital markets • anticipated construction costs, schedules and completion dates • acquisitions and divestitures. 8 TransCanada Management's discussion and analysis 2015
Risks and uncertainties • our ability to successfully implement our strategic initiatives • whether our strategic initiatives will yield the expected benefits • the operating performance of our pipeline and energy assets • amount of capacity sold and rates achieved in our pipeline businesses • the availability and price of energy commodities • the amount of capacity payments and revenues we receive from our energy business • regulatory decisions and outcomes • outcomes of legal proceedings, including arbitration and insurance claims • performance and credit risk of our counterparties • changes in market commodity prices • changes in the political environment • changes in environmental and other laws and regulations • competitive factors in the pipeline and energy sectors • construction and completion of capital projects • costs for labour, equipment and materials • access to capital markets • interest, tax and foreign exchange rates • weather • cyber security • technological developments • economic conditions in North America as well as globally. You can read more about these factors and others in reports we have filed with Canadian securities regulators and the U.S. Securities and Exchange Commission (SEC). As actual results could vary significantly from the forward-looking information, you should not put undue reliance on forwardlooking information and should not use future-oriented information or financial outlooks for anything other than their intended purpose. We do not update our forward-looking statements due to new information or future events, unless we are required to by law. FOR MORE INFORMATION See Supplementary information beginning on page 184 for other consolidated financial information on TransCanada for the last five years. You can also find more information about TransCanada in our annual information form and other disclosure documents, which are available on SEDAR (www.sedar.com). TransCanada Management's discussion and analysis 2015 9
Page 1 and 2: STRENGTH & STABILITY 2015 Annual Re
Page 3 and 4: WHAT WE STRIVE FOR OUR VISION To be
Page 5 and 6: A SOLID FOUNDATION DEAR FELLOW SHAR
Page 7 and 8: In December 2015, we entered into a
Page 9: Management's discussion and analysi
Page 13 and 14: Comparable measures We calculate th
Page 15 and 16: TransCanada Management's discussion
Page 17 and 18: as at February 5, 2016 Common share
Page 19 and 20: CAPITAL PROGRAM We are developing q
Page 21 and 22: 2015 FINANCIAL HIGHLIGHTS We use ce
Page 23 and 24: • a $34 million adjustment to inc
Page 25 and 26: Comparable earnings Comparable earn
Page 27 and 28: Funds used in investing activities
Page 29 and 30: OUTLOOK Earnings We anticipate our
Page 31 and 32: Natural Gas Pipelines Our natural g
Page 33 and 34: We are the operator of all of the f
Page 35 and 36: RESULTS The following is a reconcil
Page 37 and 38: 8 Pipelines. In November 2014, we s
Page 39 and 40: OUTLOOK Earnings Canadian Pipelines
Page 41 and 42: at risk for the difference in expec
Page 43 and 44: More competition Changes in supply
Page 45 and 46: The Eastern Mainline Project is con
Page 47 and 48: BUSINESS RISKS The following are ri
Page 49 and 50: Liquids Pipelines Our existing liqu
Page 51 and 52: We are the operator of all of the f
Page 53 and 54: Comparable depreciation and amortiz
Page 55 and 56: U.S. shale oil supply growth origin
Page 57 and 58: Energy East Pipeline In April 2015,
Page 59 and 60: Energy Our Energy business includes
Page 61 and 62:
We are the operator of all of our E
Page 63 and 64:
RESULTS The following is a reconcil
Page 65 and 66:
OUTLOOK Earnings We expect 2016 ear
Page 67 and 68:
UNDERSTANDING THE ENERGY BUSINESS O
Page 69 and 70:
Western and Eastern Power results C
Page 71 and 72:
Average spot market power prices in
Page 73 and 74:
Bruce Power results Results reflect
Page 75 and 76:
U.S. Power results Comparable EBITD
Page 77 and 78:
withdrawal season. By matching purc
Page 79 and 80:
U.S. Power capacity payments A sign
Page 81 and 82:
OTHER INCOME STATEMENT ITEMS The fo
Page 83 and 84:
Net income attributable to non-cont
Page 85 and 86:
The decrease in equity in 2015 was
Page 87 and 88:
Net cash used in investing activiti
Page 89 and 90:
Junior subordinated notes issued (m
Page 91 and 92:
In December 2014, Series 1 sharehol
Page 93 and 94:
Long-term debt At the end of 2015,
Page 95 and 96:
GUARANTEES Bruce Power We and our p
Page 97 and 98:
Risk and Description Impact Monitor
Page 99 and 100:
Greenhouse gas emissions regulation
Page 101 and 102:
Derivatives designated as a net inv
Page 103 and 104:
CRITICAL ACCOUNTING ESTIMATES When
Page 105 and 106:
We base these valuations on our pro
Page 107 and 108:
Balance sheet presentation of deriv
Page 109 and 110:
Reporting discontinued operations I
Page 111 and 112:
year ended December 31 (millions of
Page 113 and 114:
QUARTERLY RESULTS Selected quarterl
Page 115 and 116:
FOURTH QUARTER 2015 HIGHLIGHTS Cons
Page 117 and 118:
Comparable EBITDA and comparable EB
Page 119 and 120:
Comparable EBITDA for Energy decrea
Page 121 and 122:
Management's report on Internal Con
Page 123 and 124:
Report of Independent Registered Pu
Page 125 and 126:
Consolidated statement of comprehen
Page 127 and 128:
Consolidated balance sheet at Decem
Page 129 and 130:
Notes to consolidated financial sta
Page 131 and 132:
Cash and Cash Equivalents The Compa
Page 133 and 134:
Canadian income taxes are not provi
Page 135 and 136:
The recognition of gains and losses
Page 137 and 138:
4. SEGMENTED INFORMATION year ended
Page 139 and 140:
year ended December 31, 2013 (milli
Page 141 and 142:
5. OTHER CURRENT ASSETS at December
Page 143 and 144:
Liquids Pipelines Keystone Pipeline
Page 145 and 146:
Summarized Financial Information of
Page 147 and 148:
Other U.S. Natural Gas Pipelines GT
Page 149 and 150:
Allowance for Funds Used During Con
Page 151 and 152:
At December 31, 2015, the Company's
Page 153 and 154:
The above deferred tax amounts have
Page 155 and 156:
16. LONG-TERM DEBT 2015 2014 Outsta
Page 157 and 158:
Long-Term Debt Retired The Company
Page 159 and 160:
18. NON-CONTROLLING INTERESTS The C
Page 161 and 162:
Stock Options Number of Options Wei
Page 163 and 164:
20. PREFERRED SHARES at December 31
Page 165 and 166:
The changes in AOCI by component ar
Page 167 and 168:
The most recent actuarial valuation
Page 169 and 170:
Pension plan assets are managed on
Page 171 and 172:
The significant weighted average ac
Page 173 and 174:
Commodity Price Risk The Company is
Page 175 and 176:
Balance Sheet Presentation of Non-D
Page 177 and 178:
The balance sheet classification of
Page 179 and 180:
2 3 Reported within Revenues on the
Page 181 and 182:
The fair value of the Company's der
Page 183 and 184:
$216 million. The Company's total i
Page 185 and 186:
28. SUBSEQUENT EVENTS Portland Natu
Page 187 and 188:
Five year financial highlights (mil
Page 189 and 190:
Investor information STOCK EXCHANGE
Page 191 and 192:
Shareholder assistance If you are a
Page 193 and 194:
Corporate governance Please refer t
Page 195:
Our annual report is online, visit
show all

STRENGTH & STABILITY

You also want an ePaper? Increase the reach of your titles

Delete template?

Save as template?