DERIVATIVE FINANCIAL INSTRUMENTS (Tables)

12 Months Ended

Dec. 31, 2018

Disclosure of detailed information about financial instruments [abstract]

Disclosure of detailed information about financial instruments [text block]

The company held the following foreign exchange contracts with notional amounts at December 31, 2018 and December 31, 2017:

	Notional Amount (U.S. Dollars)				Average Exchange Rate
(MILLIONS)	2018		2017		2018	2017
Foreign exchange contracts
Canadian dollars	$	4,959	$	2,619	0.76	0.78
British pounds	4,952		7,312		1.32	1.29
European Union euros	3,829		2,754		1.21	1.15
Australian dollars	3,781		3,610		0.74	0.75
Indian rupees1	697		256		72.73	65.24
Chilean pesos1	615		—		647	—
Korean won1	561		578		1,102	1,100
Chinese yuan1	543		346		6.85	6.72
Japanese yen1	404		14		104.45	110.17
Colombian pesos1	370		—		2,977	—
Brazilian reais	78		62		0.24	0.27
Other currencies	530		—		various	—
Cross currency interest rate swaps
Canadian dollars	4,167		2,442		0.75	0.76
European Union euros	1,914		1,914		1.06	1.06
Australian dollars	1,454		1,610		1.00	0.98
Japanese yen1	750		750		113.32	113.33
British pounds	257		272		1.49	1.45
Colombian pesos1	125		299		3,056	3,056
Other currencies	15		—		various	—
Foreign exchange options
British pounds	1,736		534		1.31	1.19
Indian rupee1	500		—		67.95	—
Chinese yuan1	500		—		7.10	—
European Union euros	463		1,801		1.15	1.21
Canadian dollars	—		1,000		—	0.76
Japanese yen1	—		400		—	118.00
Other currencies	98		—		various	—

The following table presents the change in fair values of the company’s derivative positions during the years ended December 31, 2018 and 2017, for derivatives that are fair valued through profit or loss, and derivatives that qualify for hedge accounting:

(MILLIONS)	Unrealized Gains During 2018		Unrealized Losses During 2018			Net Change During 2018			Net Change During 2017
Foreign exchange derivatives	$	570	$	(113	)	$	457		$	(364	)
Interest rate derivatives	33		(50		)	(17		)	(15		)
Credit default swaps	3		—			3			2
Equity derivatives	87		(216		)	(129		)	169
Commodity derivatives	27		(93		)	(66		)	(34		)
	$	720	$	(472	)	$	248		$	(242	)

The aggregate notional amount of the company’s derivative positions at December 31, 2018 and 2017 is as follows:

AS AT DEC. 31 (MILLIONS)	Note	2018		2017
Foreign exchange	(a)	$	33,298	$	28,573
Interest rates	(b)	38,490		18,433
Credit default swaps	(c)	56		43
Equity derivatives	(d)	1,375		1,384
Commodity instruments	(e)	2018		2017
Energy (GWh)		14,752		28,808
Natural gas (MMBtu – 000’s)		63,076		48,163

The following table presents the notional amounts underlying the company’s derivative instruments by term to maturity as at December 31, 2018 and 2017, for derivatives that are classified as fair value through profit or loss, and derivatives that qualify for hedge accounting:

	2018								2017
AS AT DEC. 31 (MILLIONS)	<1 Year		1 to 5 Years		>5 Years		Total Notional Amount		Total Notional Amount
Fair value through profit or loss
Foreign exchange derivatives	$	7,402	$	1,901	$	—	$	9,303	$	10,632
Interest rate derivatives	3,738		11,123		1,760		16,621		11,532
Credit default swaps	—		56		—		56		43
Equity derivatives	537		838		—		1,375		1,362
Commodity instruments
Energy (GWh)	1,100		7,612		—		8,712		13,222
Natural gas (MMBtu – 000’s)	53,283		1,370		—		54,653		3,149
Elected for hedge accounting
Foreign exchange derivatives	$	15,819	$	6,700	$	1,476	$	23,995	$	17,941
Interest rate derivatives	9,955		10,127		1,787		21,869		6,901
Equity derivatives	—		—		—		—		22
Commodity instruments
Energy (GWh)	674		3,357		2,009		6,040		15,586
Natural gas (MMBtu – 000’s)	8,423		—		—		8,423		45,014

Disclosure of derivatives elected for hedge accounting

The following table classifies derivatives elected for hedge accounting during the years ended December 31, 2018 and 2017 as either cash flow hedges or net investment hedges. Changes in the fair value of the effective portion of the hedge are recorded in either other comprehensive income or net income, depending on the hedge classification, whereas changes in the fair value of the ineffective portion of the hedge are recorded in net income:

	2018							2017
FOR THE YEARS ENDED DEC. 31 (MILLIONS)	Notional		Effective Portion		Ineffective Portion			Notional		Effective Portion			Ineffective Portion
Cash flow hedges1	$	24,999	$	38	$	(3	)	$	10,254	$	42		$	(16	)
Net investment hedges	17,319		999		9			14,587		(748		)	—
	$	42,318	$	1,037	$	6		$	24,841	$	(706	)	$	(16	)

1. Notional amount does not include 6,040 GWh, 8,423 MMBtu – 000’s and 3,151 bbls – millions of commodity derivatives at December 31, 2018 (2017 – 15,586 GWh, 45,014 MMBtu – 000’s and 3,087 bbls – millions)