OTHER COMPREHENSIVE INCOME / (LOSS) AND ACCUMULATED OTHER COMPREHENSIVE INCOME/(LOSS) (Tables)

12 Months Ended

Dec. 31, 2022

Components of Other Comprehensive Income/ (Loss)

Components of other comprehensive income/(loss), including the portion attributable to non-controlling interests and related tax effects, were as follows:


year ended December 31, 2022	Before Tax Amount	Income Tax Recovery/(Expense)	Net of Tax Amount
(millions of Canadian $)

Foreign currency translation gains and losses on net investment in foreign operations	1,410	84	1,494
Change in fair value of net investment hedges	(48)	12	(36)
Change in fair value of cash flow hedges	(58)	19	(39)
Reclassification to net income of gains and losses on cash flow hedges	63	(21)	42
Unrealized actuarial gains and losses on pension and other post-retirement benefit plans	81	(18)	63
Reclassification to net income of actuarial gains and losses on pension and other post-retirement benefit plans	9	(3)	6
Other comprehensive income on equity investments	1,156	(289)	867
Other Comprehensive Income	2,613	(216)	2,397


year ended December 31, 2021	Before Tax Amount	Income Tax Recovery/(Expense)	Net of Tax Amount
(millions of Canadian $)

Foreign currency translation gains and losses on net investment in foreign operations	(100)	(8)	(108)
Change in fair value of net investment hedges	(3)	1	(2)
Change in fair value of cash flow hedges	(13)	3	(10)
Reclassification to net income of gains and losses on cash flow hedges	68	(13)	55
Unrealized actuarial gains and losses on pension and other post-retirement benefit plans	208	(50)	158
Reclassification to net income of actuarial gains and losses on pension and other post-retirement benefit plans	20	(6)	14
Other comprehensive income on equity investments	714	(179)	535
Other Comprehensive Income	894	(252)	642


year ended December 31, 2020	Before Tax Amount	Income Tax Recovery/(Expense)	Net of Tax Amount
(millions of Canadian $)

Foreign currency translation gains and losses on net investment in foreign operations	(647)	38	(609)

Change in fair value of net investment hedges	48	(12)	36
Change in fair value of cash flow hedges	(771)	188	(583)
Reclassification to net income of gains and losses on cash flow hedges	649	(160)	489
Unrealized actuarial gains and losses on pension and other post-retirement benefit plans	15	(3)	12
Reclassification to net income of actuarial gains and losses on pension and other post-retirement benefit plans	23	(6)	17
Other comprehensive loss on equity investments	(373)	93	(280)
Other Comprehensive Loss	(1,056)	138	(918)

Schedule of Changes in Accumulated Other Comprehensive Income

The changes in AOCI by component were as follows:


(millions of Canadian $)	Currency Translation Adjustments	Cash Flow Hedges	Pension and Other Post-Retirement Benefit Plan Adjustments	Equity Investments	Total1

AOCI balance at January 1, 2020	(730)	(58)	(314)	(457)	(1,559)
Other comprehensive (loss)/income before reclassifications2	(543)	(567)	12	(292)	(1,390)
Amounts reclassified from AOCI	—	482	17	11	510
Net current period other comprehensive (loss)/income	(543)	(85)	29	(281)	(880)
AOCI balance at December 31, 2020	(1,273)	(143)	(285)	(738)	(2,439)
Other comprehensive (loss)/income before reclassifications2	(98)	(11)	158	506	555
Amounts reclassified from AOCI	—	55	14	28	97
Net current period other comprehensive (loss)/income	(98)	44	172	534	652
Acquisition of TC PipeLines, LP3	362	(13)	—	4	353
AOCI balance at December 31, 2021	(1,009)	(112)	(113)	(200)	(1,434)
Other comprehensive income/(loss) before reclassifications2	1,450	(39)	63	870	2,344
Amounts reclassified from AOCI4	—	42	6	(3)	45
Net current period other comprehensive income	1,450	3	69	867	2,389
AOCI balance at December 31, 2022	441	(109)	(44)	667	955

1All amounts are net of tax. Amounts in parentheses indicate losses recorded to OCI.

2Other comprehensive income/(loss) before reclassifications on currency translation adjustments, cash flow hedges and equity investments are net of non-controlling interest gains of $8 million (2021 – losses of $12 million; 2020 – losses of $30 million), nil (2021 – gains of $1 million; 2020 – losses of $16 million), and nil (2021 – gains of $1 million; 2020 – gains of $1 million ), respectively.

3Represents the AOCI attributable to non-controlling interests of TC PipeLines, LP which was reclassified to AOCI on the Consolidated balance sheet upon completion of the acquisition of all the outstanding publicly-held common units of TC PipeLines, LP on March 3, 2021. Refer to Note 23, Non-controlling interests, for additional information.

4Losses related to cash flow hedges reported in AOCI and expected to be reclassified to net income in the next 12 months are estimated to be $84 million ($64 million, net of tax) at December 31, 2022. These estimates assume constant commodity prices, interest rates and foreign exchange rates over time; however, the amounts reclassified will vary based on the actual value of these factors at the date of settlement.

Schedule of Reclassifications out of Accumulated Other Comprehensive Income

Details about reclassifications out of AOCI into the Consolidated statement of income were as follows:


year ended December 31	Amounts Reclassified From AOCI			Affected Line Item in the Consolidated Statement of Income1
	2022	2021	2020
(millions of Canadian $)

Cash flow hedges
Commodities	(47)	(22)	(1)	Revenues (Power and Energy Solutions)
Interest rate	(16)	(46)	(28)	Interest expense
Interest rate	—	—	(613)	Net gain/(loss) on sale of assets2
	(63)	(68)	(642)	Total before tax
	21	13	160	Income tax expense
	(42)	(55)	(482)	Net of tax3
Pension and other post-retirement benefit plan adjustments
Amortization of actuarial losses	(11)	(22)	(23)	Plant operating costs and other4
Settlement gain	2	2	—	Plant operating costs and other4
	(9)	(20)	(23)	Total before tax
	3	6	6	Income tax expense
	(6)	(14)	(17)	Net of tax
Equity investments
Equity income	4	(37)	(15)	Income from equity investments
	(1)	9	4	Income tax expense
	3	(28)	(11)	Net of tax

1Amounts in parentheses indicate expenses to the Consolidated statement of income.

2Represents a loss of $613 million ($459 million, net of tax) related to a contractually required derivative instrument used to hedge the interest rate risk associated with project-level financing of the Coastal GasLink construction. The derivative instrument was derecognized as part of the sale of a 65 per cent equity interest in Coastal GasLink LP. Refer to Note 30, Acquisitions and dispositions, for additional information.

3Amounts reclassified from AOCI on cash flow hedges are net of non-controlling interest of nil (2021 – nil; 2020 – losses of $7 million).

4These AOCI components are included in the computation of net benefit cost. Refer to Note 27, Employee post-retirement benefits, for additional information.