EX-13.4 5 trp-12312015xsupplementali.htm FORM 40-F SUPPLEMENTAL INFORMATION Exhibit
EXHIBIT 13.4


Supplementary information
SELECTED QUARTERLY AND ANNUAL CONSOLIDATED FINANCIAL DATA
 
First

 
Second

 
Third

 
Fourth

 
Annual

 
 
 
 
 
 
 
 
 
 
Toronto Stock Exchange (Stock trading symbol TRP)
 
 
 
 
 
 
 
 
2015 (dollars)
 
 
 
 
 
 
 
 
 
High
59.50

 
58.12

 
52.16

 
48.44

 
59.50

Low
50.51

 
50.15

 
41.10

 
40.58

 
40.58

Close
54.16

 
50.76

 
42.20

 
45.19

 
45.19

Volume (millions of shares)
84.2

 
79.6

 
84.4

 
124.4

 
372.6

 
 
 
 
 
 
 
 
 
 
2014 (dollars)
 
 
 
 
 
 
 
 
 
High
50.97

 
51.89

 
63.86

 
58.18

 
63.86

Low
47.14

 
49.34

 
50.38

 
49.30

 
47.14

Close
50.25

 
50.93

 
57.68

 
57.10

 
57.10

Volume (millions of shares)
58.6

 
58.9

 
104.7

 
115.0

 
337.2

 
 
 
 
 
 
 
 
 
 
2013 (dollars)
 
 
 
 
 
 
 
 
 
High
50.08

 
51.21

 
48.48

 
48.93

 
51.21

Low
46.80

 
44.62

 
44.75

 
43.94

 
43.94

Close
48.50

 
45.28

 
45.25

 
48.54

 
48.54

Volume (millions of shares)
76.9

 
85.8

 
64.3

 
68.9

 
295.9

 
 
 
 
 
 
 
 
 
 
2012 (dollars)
 
 
 
 
 
 
 
 
 
High
44.75

 
43.80

 
46.29

 
47.44

 
47.44

Low
40.34

 
41.47

 
42.73

 
43.16

 
40.34

Close
42.83

 
42.67

 
44.74

 
47.02

 
47.02

Volume (millions of shares)
95.4

 
79.3

 
78.5

 
66.0

 
319.2

 
 
 
 
 
 
 
 
 
 
2011 (dollars)
 
 
 
 
 
 
 
 
 
High
39.64

 
43.72

 
43.23

 
44.74

 
44.74

Low
36.10

 
38.95

 
37.00

 
39.25

 
36.10

Close
39.31

 
42.35

 
42.54

 
44.53

 
44.53

Volume (millions of shares)
106.9

 
85.9

 
107.4

 
120.6

 
420.8

 
 
 
 
 
 
 
 
 
 
New York Stock Exchange (Stock trading symbol TRP)
 
 
 
 
 
 
 
 
2015 (U.S. dollars)
 
 
 
 
 
 
 
 
 
High
49.64

 
48.10

 
40.78

 
35.57

 
49.64

Low
41.51

 
40.33

 
30.60

 
29.89

 
29.89

Close
42.72

 
40.62

 
31.58

 
32.59

 
32.59

Volume (millions of shares)
69.9

 
57.9

 
66.4

 
78.1

 
272.3

 
 
 
 
 
 
 
 
 
 
2014 (U.S. dollars)
 
 
 
 
 
 
 
 
 
High
45.81

 
48.13

 
58.40

 
51.84

 
58.40

Low
42.21

 
44.78

 
47.24

 
43.71

 
42.21

Close
45.52

 
47.72

 
51.53

 
49.10

 
49.10

Volume (millions of shares)
31.9

 
29.5

 
88.2

 
99.5

 
249.0

 
 
 
 
 
 
 
 
 
 
2013 (U.S. dollars)
 
 
 
 
 
 
 
 
 
High
49.64

 
49.65

 
46.79

 
46.45

 
49.65

Low
45.80

 
42.39

 
42.59

 
42.41

 
42.39

Close
47.89

 
43.11

 
43.94

 
45.66

 
45.66

Volume (millions of shares)
33.3

 
38.2

 
30.3

 
27.9

 
129.7

 
 
 
 
 
 
 
 
 
 
2012 (U.S. dollars)
 
 
 
 
 
 
 
 
 
High
45.07

 
44.5

 
47.02

 
47.78

 
47.78

Low
39.74

 
39.87

 
41.68

 
43.54

 
39.74

Close
43

 
41.9

 
45.5

 
47.32

 
47.32

Volume (millions of shares)
39.7

 
29.2

 
20.1

 
20.0

 
109.0

 
 
 
 
 
 
 
 
 
 
2011 (U.S. dollars)
 
 
 
 
 
 
 
 
 
High
40.76

 
45.09

 
44.08

 
44.38

 
45.09

Low
36.12

 
40.37

 
37.29

 
37.58

 
36.12

Close
40.53

 
43.84

 
40.49

 
43.67

 
43.67

Volume (millions of shares)
30.3

 
23.8

 
51.6

 
48.5

 
154.2


 
 
 
184 TransCanada Corporation 2015
 
 



Five year financial highlights
(millions of Canadian $, unless otherwise noted)
2015

 
2014

 
2013

 
2012

 
2011

 
 
 
 
 
 
 
 
 
 
Income Statement
 
 
 
 
 
 
 
 
 
Revenues
11,300

 
10,185

 
8,797

 
8,007

 
7,839

EBITDA
 
 
 
 
 
 
 
 
 
Natural Gas Pipelines
3,352

 
3,250

 
2,907

 
2,741

 
2,875

Liquids Pipelines
(2,364
)
 
1,059

 
752

 
698

 
587

Energy
1,148

 
1,360

 
1,407

 
862

 
1,119

Corporate
(270
)
 
(127
)
 
(108
)
 
(97
)
 
(86
)
 
 
 
 
 
 
 
 
 
 
 
1,866

 
5,542

 
4,958

 
4,204

 
4,495

Depreciation
(1,765
)
 
(1,611
)
 
(1,485
)
 
(1,375
)
 
(1,328
)
EBIT
101

 
3,931

 
3,473

 
2,829

 
3,167

Interest expense and other
(1,207
)
 
(1,107
)
 
(951
)
 
(891
)
 
(882
)
Income taxes
(34
)
 
(831
)
 
(611
)
 
(466
)
 
(575
)
Net (loss)/income
(1,140
)
 
1,993

 
1,911

 
1,472

 
1,710

Net income attributable to non-controlling interests
(6
)
 
(153
)
 
(125
)
 
(118
)
 
(129
)
Net (loss)/income attributable to controlling interests
(1,146
)
 
1,840

 
1,786

 
1,354

 
1,581

Preferred share dividends
(94
)
 
(97
)
 
(74
)
 
(55
)
 
(55
)
Net (loss)/income attributable to common shares
(1,240
)
 
1,743

 
1,712

 
1,299

 
1,526

 
 
 
 
 
 
 
 
 
 
Comparable earnings
1,755

 
1,715

 
1,584

 
1,330

 
1,559

Comparable EBITDA
5,908

 
5,521

 
4,859

 
4,245

 
4,544

 
 
 
 
 
 
 
 
 
 
Cash Flow Statement
 
 
 
 
 
 
 
 
 
Funds generated from operations
4,513

 
4,268

 
4,000

 
3,284

 
3,451

(Increase)/Decrease in operating working capital
(398
)
 
(189
)
 
(326
)
 
287

 
235

 
 
 
 
 
 
 
 
 
 
Net cash provided by operations
4,115

 
4,079

 
3,674

 
3,571

 
3,686

 
 
 
 
 
 
 
 
 
 
Comparable distributable cash flow
3,546

 
3,406

 
3,234

 
2,589

 
2,966

 
 
 
 
 
 
 
 
 
 
Capital spending – capital expenditures
3,918

 
3,489

 
4,264

 
2,595

 
2,513

Capital spending – projects in development
511

 
848

 
488

 
3

 
16

Acquisitions, net of cash acquired
236

 
241

 
216

 
214

 
—

Cash dividends paid on common and preferred shares
1,538

 
1,439

 
1,356

 
1,281

 
1,016

 
 
 
 
 
 
 
 
 
 
Balance Sheet
 
 
 
 
 
 
 
 
 
Assets
 
 
 
 
 
 
 
 
 
Plant, property and equipment
44,817

 
41,774

 
37,606

 
33,713

 
32,467

Total assets
64,483

 
58,525

 
53,898

 
48,396

 
47,338

 
 
 
 
 
 
 
 
 
 
Capitalization
 
 
 
 
 
 
 
 
 
Long-term debt
31,584

 
24,757

 
22,865

 
18,913

 
18,659

Junior subordinated notes
2,422

 
1,160

 
1,063

 
994

 
1,016

Preferred shares
2,499

 
2,255

 
1,813

 
1,224

 
1,224

Common shareholders' equity
13,939

 
16,815

 
16,712

 
15,687

 
15,570


 
 
 
 
 
TransCanada Corporation 2015 185


 
2015

 
2014

 
2013

 
2012

 
2011

 
 
 
 
 
 
 
 
 
 
Per Common Share Data
 
 
 
 
 
 
 
 
 
Net income – basic

($1.75
)
 

$2.46

 

$2.42

 

$1.84

 

$2.17

– diluted

($1.75
)
 

$2.46

 

$2.42

 

$1.84

 

$2.17

Comparable earnings per share

$2.48

 

$2.42

 

$2.24

 

$1.89

 

$2.22

 
 
 
 
 
 
 
 
 
 
Dividends declared

$2.08

 

$1.92

 

$1.84

 

$1.76

 

$1.68

Book Value1,2

$19.84

 

$23.73

 

$23.62

 

$22.24

 

$22.12

 
 
 
 
 
 
 
 
 
 
Market Price
 
 
 
 
 
 
 
 
 
Toronto Stock Exchange (dollars)
 
 
 
 
 
 
 
 
 
High
59.50

 
63.86

 
51.21

 
47.44

 
44.74

Low
40.58

 
47.14

 
43.94

 
40.34

 
36.1

Close
45.19

 
57.10

 
48.54

 
47.02

 
44.53

Volume (millions of shares)
372.6

 
337.2

 
295.9

 
319.2

 
420.8

New York Stock Exchange (U.S. dollars)
 
 
 
 
 
 
 
 
 
High
49.64

 
58.40

 
49.65

 
47.78

 
45.09

Low
29.89

 
42.21

 
42.39

 
39.74

 
36.12

Close
32.59

 
49.10

 
45.66

 
47.32

 
43.67

Volume (millions of shares)
272.3

 
249.0

 
129.7

 
109.0

 
154.2

Common shares outstanding (millions)
 
 
 
 
 
 
 
 
 
Average for the year
708.6

 
708.0

 
706.7

 
704.6

 
701.6

End of year
702.6

 
708.7

 
707.4

 
705.5

 
703.9

Registered common shareholders1
29,367

 
30,513

 
31,300

 
31,449

 
32,113

 
 
 
 
 
 
 
 
 
 
Per Preferred Share Data (dollars)
 
 
 
 
 
 
 
 
 
Dividends declared:
 
 
 
 
 
 
 
 
 
Series 1, 2, 3, 4, 5, 7, 9, and 11 cumulative first preferred shares3

$6.31

 

$5.34

 

$4.16

 

$3.25

 

$3.25

 
 
 
 
 
 
 
 
 
 
Financial Ratios
 
 
 
 
 
 
 
 
 
Dividend yield4,5
4.6
 %
 
3.4
%
 
3.8
%
 
3.7
%
 
3.8
%
Price/earnings multiple5,6
(25.8
)
 
23.2

 
20.1

 
25.5

 
20.5

Price/book multiple2,5
2.3

 
2.4

 
2.1

 
2.1

 
2.0

Debt to debt plus shareholders' equity7
71
 %
 
61
%
 
59
%
 
56
%
 
56
%
Total shareholder return8
(17.7
)%
 
22.0
%
 
7.2
%
 
9.9
%
 
22.2
%
Earnings to fixed charges9
0.2

 
2.8

 
2.8

 
2.2

 
2.6

1 
As at December 31.
2 
The price/book multiple is determined by dividing price per common share by book value per common share as calculated by dividing common shareholders' equity by the number of common shares outstanding as at December 31.
 
 
Cumulative First Preferred Shares
 
Issue Date
 
Annual Dividend Per Share

 
First quarterly dividend paid
3 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Series 1
 
September 2009
 

$0.82

 
December 2009
 
 
Series 2 - upon conversion of Series 1
 
December 2014
 

$0.63

 
March 2015
 
 
Series 3
 
March 2010
 

$0.77

 
June 2010
 
 
Series 4 - upon conversion of Series 3
 
June 2015
 

$0.23

 
September 2015
 
 
Series 5
 
June 2010
 

$1.10

 
November 2010
 
 
Series 7
 
March 2013
 

$1.00

 
April 2013
 
 
Series 9
 
January 2014
 

$1.06

 
January 2014
 
 
Series 11
 
March 2015
 

$0.70

 
May 2015
4 
The dividend yield is determined by dividing dividends per common share declared during the year by price per common share as at December 31.
5 
Price per common share refers to market price per share as reported on the Toronto Stock Exchange as at December 31.
6 
The price/earnings multiple is determined by dividing price per common share by the basic net income per share.
7 
Debt includes Junior Subordinated Notes, total long-term debt, including the current portion of long-term debt, plus preferred securities as at December 31 and excludes long-term debt of joint ventures. Shareholders' equity in this ratio is as at December 31.
8 
Total shareholder return is the sum of the change in price per common share plus the dividends received plus the impact of dividend re-investment in a calendar year, expressed as a percentage of the value of shares at the end of the previous year.
9 
The earnings to fixed charges ratio is determined by dividing earnings by fixed charges. Earnings is calculated as the sum of EBIT and interest income and other, less income attributable to non-controlling interests with interest expense and undistributed earnings of investments accounted for by the equity method. Fixed charges is calculated as the sum of interest expense, and capitalized interest.

 
 
 
186 TransCanada Corporation 2015
 
 



Investor information

STOCK EXCHANGES, SECURITIES AND SYMBOLS
TransCanada Corporation
Common shares are listed on the Toronto and New York stock exchanges under the symbol: TRP
First Preferred Shares, Series 1 are listed on the Toronto Stock Exchange under the symbol: TRP.PR.A
First Preferred Shares, Series 2 are listed on the Toronto Stock Exchange under the symbol: TRP.PR.F
First Preferred Shares, Series 3 are listed on the Toronto Stock Exchange under the symbol: TRP.PR.B
First Preferred Shares, Series 4 are listed on the Toronto Stock Exchange under the symbol: TRP.PR.H
First Preferred Shares, Series 5 are listed on the Toronto Stock Exchange under the symbol: TRP.PR.C
First Preferred Shares, Series 7 are listed on the Toronto Stock Exchange under the symbol: TRP.PR.D
First Preferred Shares, Series 9 are listed on the Toronto Stock Exchange under the symbol: TRP.PR.E
First Preferred Shares, Series 11 are listed on the Toronto Stock Exchange under the symbol: TRP.PR.G
Annual Meeting    The annual and special meeting of shareholders is scheduled for April 29, 2016 at 10:00 a.m. (Mountain Daylight Time) at the Markin McPhail Centre, at the at the Calgary Olympic Park, 88 Canada Olympic Road S.W., Calgary, Alberta.
Dividend Payment Dates    Scheduled common share dividend payment dates in 2016 are January 29, April 29, July 29 and October 31.
For information on dividend payment dates for TransCanada Corporation and TCPL Preferred Shares visit our website at www.transcanada.com.
Dividend Reinvestment and Share Purchase Plan    TransCanada's dividend reinvestment and share purchase plan (Plan) allows common and preferred shareholders of TransCanada and preferred shareholders of TCPL to purchase common shares of TransCanada by reinvesting their cash dividends without incurring brokerage or administrative fees. Participants in the Plan may also buy additional common shares, up to Cdn$10,000 per quarter. For more information on the Plan please contact our Plan agent, Computershare Trust Company of Canada or visit our website at www.transcanada.com.

TRANSFER AGENTS, REGISTRARS AND TRUSTEE
TransCanada Corporation Common Shares    Computershare Trust Company of Canada (Montréal, Toronto, Calgary and Vancouver) and Computershare Trust Company, N.A. (Golden)
TransCanada Corporation First Preferred Shares, Series 1, 2, 3, 4, 5, 7, 9 and 11    Computershare Trust Company of Canada (Montréal, Toronto, Calgary and Vancouver)


 
 
 
 
 
TransCanada Corporation 2015 187


TCPL Debentures        
Canadian Series: BNY Trust Company of Canada (Halifax, Montréal, Toronto, Calgary and Vancouver)
10.5% series P
 
11.80% series U
 
9.80% series V
 
9.45% series W
U.S. Series: The Bank of New York (New York) 9.875%
TCPL Canadian Medium-Term Notes    CIBC Mellon Trust Company (Montréal and Toronto)
TCPL U.S. Medium-Term Notes and Senior Notes    The Bank of New York Mellon (New York)
TCPL U.S. Junior Subordinated Notes 2007    Computershare Trust Company, N.A. (Jersery City, NJ)
TCPL Junior Subordinated Notes 2015 Computershare Trust Company of Canada
NOVA Gas Transmission Ltd. (NGTL) Debentures        
Canadian Series: BNY Trust Company of Canada (Montreal and Toronto)
12.20% series 20
 
12.20% series 21
 
9.90% series 23
 
 
U.S. Series: U.S. Bank Trust National Association (New York) 7.875%
NGTL Canadian Medium-Term Notes    BNY Trust Company of Canada (Montreal and Toronto)
NGTL U.S. Medium-Term Notes    U.S. Bank Trust National Association (New York)

REGULATORY FILINGS
Annual Information Form    TransCanada's 2015 Annual information form, as filed with Canadian securities commissions and as filed under Form 40-F with the SEC, is available on our website at www.transcanada.com.
A printed copy may be obtained from:
Corporate Secretary, TransCanada Corporation, 450 1st Street SW, Calgary, Alberta, Canada T2P 5H1


 
 
 
188 TransCanada Corporation 2015
 
 



Shareholder assistance

If you are a registered shareholder and have questions regarding your account, please contact our transfer agent in writing, by telephone or e-mail at:
Computershare Trust Company of Canada, 100 University Avenue, 8th Floor, Toronto, Ontario, Canada M5J 2Y1
Toll-free: 1.800.340.5024
Telephone: 1.514.982.7959
E-mail: transcanada@computershare.com
www.computershare.com
If you hold your shares in a brokerage account (beneficial shareholder), questions should be directed to your broker on all administrative matters.
If you would like to receive quarterly reports, please contact Computershare or visit our website at www.transcanada.com.
Electronic Proxy Voting and Delivery of Documents    TransCanada is using Notice & Access which allows an issuer to deliver the Management information circular to registered shareholders by posting it and other related materials on SEDAR at www.sedar.com and www.transcanada/notice-and-access.com. Registered shareholders who still wish to receive a paper copy of the Management information circular may request one free of charge by following the instructions set out in the notice that will be sent to all registered shareholders by mail. TransCanada is pleased to offer all shareholders the ability to receive their documents (annual report, management information circular, notice of meeting and view-only proxy form or voting instruction form) and vote online.
In 2016, registered shareholders who opt to receive their documents electronically will have a tree planted on their behalf through eTree. For more information and to sign up online, registered shareholders can visit www.investorcentre.com.
Shareholders who do not have access to e-mail, or who still prefer to receive their proxy materials by mail also have the ability to choose whether to receive TransCanada's annual report by regular mail. Each year, shareholders are required to renew their option and will receive a notification for doing so. The annual report is available on the TransCanada website at www.transcanada.com at the same time that the report is mailed to shareholders.
Notice and Access, electronic delivery and the ability to opt out of receiving the annual report by mail, provides increased convenience to shareholders, benefits to the environment and reduced mailing and printing costs for the company.
TransCanada in the Community    TransCanada's annual Corporate Responsibility Report is available at www.transcanada.com. If you would like to receive a copy of this report by mail, please contact:
Communications    450 1st Street SW, Calgary, Alberta T2P 5H1, 1.403.920.2000 or 1.800.661.3805 or Communications@transcanada.com
Visit our website at www.transcanada.com to access TransCanada's corporate and financial information, including quarterly reports, news releases, real-time conference call webcasts and investor presentations.
Si vous désirez vous procurer un exemplaire de ce rapport en français, veuillez consulter notre site web ou vous adresser par écrit à TransCanada Corporation, bureau du secrétaire.


 
 
 
 
 
TransCanada Corporation 2015 189


Board of directors

(as at December 31, 2015)
S. Barry Jackson1,2
Chairman
TransCanada Corporation
Calgary, Alberta

Russell K. Girling
President and CEO
TransCanada Corporation
Calgary, Alberta

Kevin E. Benson1,4
Corporate Director
Calgary, Alberta

Derek H. Burney, O.C.4,7
Senior Strategic Advisor
Norton Rose Canada LLP
Ottawa, Ontario
 
The Hon. Paule Gauthier, P.C., O.C., O.Q., Q.C.2,5
Senior Partner
Stein Monast L.L.P.
Québec, Québec

John E. Lowe4,5
Chairman
Apache Corporation
Houston, Texas

Paula Rosput Reynolds5,8
President and CEO
PreferWest LLC
Seattle, Washington

John Richels2,5
Corporate Director
Toronto, Ontario
 
Mary Pat Salomone4,5
Corporate Director
Naples, FL

D. Michael G. Stewart4,6
Corporate Director
Calgary, Alberta

Siim A. Vanaselja1,3
Corporate Director
Westmount, Québec

Richard E. Waugh1,2
Corporate Director
Toronto, Ontario
1
Member, Governance Committee
2
Member, Human Resources Committee
3
Chair, Audit Committee
4
Member, Audit Committee
5
Member, Health, Safety & Environment Committee
6
Chair, Health, Safety & Environment Committee
7
Chair, Governance Committee
8
Chair, Human Resources Committee

 
 
 
190 TransCanada Corporation 2015
 
 



Corporate governance

Please refer to TransCanada's Notice of 2016 annual and special meeting of shareholders and Management information circular for the company's statement of corporate governance.
TransCanada's Corporate Governance Guidelines, Board charter, Committee charters, Chair and Chief Executive Officer terms of reference and code of business ethics are available on our website at www.transcanada.com. Also available on our website is a summary of the significant ways in which TransCanada's corporate governance practices differ from those required to be followed by U.S. domestic companies under the New York Stock Exchange's listing standards.
Additional information relating to the company is filed with securities regulators in Canada on SEDAR (www.sedar.com) and in the United States on EDGAR (www.sec.gov). The documents referred to in this Annual Report may be obtained free of charge by contacting TransCanada's Corporate Secretary at 450 1st Street SW, Calgary, Alberta, Canada T2P 5H1, or by calling 1.800.661.3805.
Ethics Help-Line The Audit Committee of the Board of Directors has established an anonymous and confidential toll-free telephone number for employees, contractors and others to call with respect to accounting irregularities and ethical violations. The Ethics Help-Line number is 1.888.920.2042.


 
 
 
 
 
TransCanada Corporation 2015 191