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PROPERTY, PLANT AND EQUIPMENT | 12 Months Ended
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Dec. 31, 2016
PROPERTY, PLANT AND EQUIPMENT |
PROPERTY, PLANT AND EQUIPMENT | 9. PROPERTY, PLANT AND EQUIPMENT
|  | Weighted Average |  |  |  |  |
December 31, |  | Depreciation Rate |  | 2016 |  | 2015 |
(millions of Canadian dollars) |  |  |  |  |  |  |
Liquids Pipelines |  |  |  |  |  |  |
Pipeline |  | 2.7% |  | 30,809 |  | 31,092 |
Pumping equipment, buildings, tanks and other |  | 3.0% |  | 15,215 |  | 14,319 |
Land and right-of-way |  | 2.4% |  | 1,218 |  | 1,221 |
Under construction |  | - |  | 5,419 |  | 6,002 |
|  |  |  | 52,661 |  | 52,634 |
Accumulated depreciation |  |  |  | (8,996 | ) | (8,233 | )
|  |  |  | 43,665 |  | 44,401 |
Gas Distribution |  |  |  |  |  |  |
Gas mains, services and other |  | 3.1% |  | 10,022 |  | 8,819 |
Land and right-of-way |  | 1.0% |  | 133 |  | 85 |
Under construction |  | - |  | 144 |  | 902 |
|  |  |  | 10,299 |  | 9,806 |
Accumulated depreciation |  |  |  | (2,524 | ) | (2,379 | )
|  |  |  | 7,775 |  | 7,427 |
Gas Pipelines and Processing |  |  |  |  |  |  |
Pipeline |  | 3.0% |  | 3,665 |  | 3,557 |
Compressors, meters and other operating equipment |  | 2.4% |  | 4,014 |  | 3,864 |
Processing and treating plants |  | 2.4% |  | 846 |  | 869 |
Pumping equipment, buildings, tanks and other |  | 8.4% |  | 306 |  | 275 |
Land and right-of-way |  | 2.3% |  | 673 |  | 680 |
Under construction |  | - |  | 791 |  | 956 |
|  |  |  | 10,295 |  | 10,201 |
Accumulated depreciation |  |  |  | (2,167 | ) | (2,003 | )
|  |  |  | 8,128 |  | 8,198 |
Green Power and Transmission |  |  |  |  |  |  |
Wind turbines, solar panels and other |  | 4.1% |  | 4,259 |  | 4,311 |
Power transmission |  | 2.2% |  | 378 |  | 387 |
Land and right-of-way |  | 1.9% |  | 43 |  | 45 |
Under construction |  | - |  | 612 |  | 51 |
|  |  |  | 5,292 |  | 4,794 |
Accumulated depreciation |  |  |  | (778 | ) | (600 | )
|  |  |  | 4,514 |  | 4,194 |
Energy Services |  |  |  |  |  |  |
Pumping equipment and other |  | 4.0% |  | 33 |  | 34 |
|  |  |  | 33 |  | 34 |
Accumulated depreciation |  |  |  | (13 | ) | (13 | )
|  |  |  | 20 |  | 21 |
Eliminations and Other |  |  |  |  |  |  |
Vehicles, office furniture, equipment and other |  | 9.3% |  | 315 |  | 331 |
|  |  |  | 315 |  | 331 |
Accumulated depreciation |  |  |  | (133 | ) | (138 | )
|  |  |  | 182 |  | 193 |
|  |  |  | 64,284 |  | 64,434 |
Depreciation expense for the year ended December 31, 2016 was $2,049 million (2015 - $1,852 million 2014 - $1,461 million). IMPAIRMENT Northern Gateway Pipeline Project On November 29, 2016, the Canadian Federal Government directed the NEB to dismiss the Company’s Northern Gateway application and the Certificates of Public Convenience and Necessity have been rescinded. In consultation with potential shippers and Aboriginal equity partners, the Company assessed this decision and concluded that the project cannot proceed as envisioned. After taking into consideration the amount recoverable from potential shippers on Northern Gateway, the Company recognized an impairment of $373 million ($272 million after-tax), which is included in Impairment of property, plant and equipment in the Consolidated Statements of Earnings. This impairment loss is based on the full carrying value of the assets, which have an estimated fair value of nil, and is included within the Liquids Pipelines segment. Sandpiper Project On September 1, 2016, Enbridge announced that EEP applied for the withdrawal of regulatory applications pending with the Minnesota Public Utilities Commission for the Sandpiper Project (Sandpiper). In connection with this announcement and other factors, the Company evaluated Sandpiper for impairment. As a result, the Company recognized an impairment loss of $992 million ($81 million after-tax attributable to Enbridge) for the year ended December 31, 2016, which is included in Impairment of property, plant and equipment in the Consolidated Statements of Earnings. Sandpiper is included within the Liquids Pipelines segment. The estimated remaining fair value of $71 million of Sandpiper is based on the estimated price that would be received to sell unused pipe, land and other related equipment in its current condition, considering the current market conditions for sale of these assets. The valuation considered a range of potential selling prices from various alternatives that could be used to dispose of these assets. The estimated fair value, with the exception of $3 million in land, has been reclassified into Deferred amounts and other assets in the Consolidated Statements of Financial Position as at December 31, 2016. Other For the year ended December 31, 2016, the Company recorded impairment charges of $11 million related to EEP’s non-core trucking assets and related facilities, included within the Gas Pipelines and Processing segment. For the year ended December 31, 2015, the Company recorded impairment charges of $96 million, of which $80 million related to EEP’s Berthold rail facility, included within the Liquids Pipelines segment, due to contracts that have not been renewed beyond 2016. The remaining $16 million in impairment charges relate to EEP’s non-core Louisiana propylene pipeline asset, included within the Gas Pipelines and Processing segment, following finalization of a contract restructuring with the primary customer. Impairment charges were based on the amount by which the carrying values of the assets exceeded fair value, determined using expected discounted future cash flows, and were presented within Impairment of property, plant and equipment on the Consolidated Statements of Earnings. DISCONTINUED OPERATIONS In March 2014, the Company completed the sale of certain of its Offshore assets located within the Stingray corridor to an unrelated third party for cash proceeds of $11 million (US$10 million), subject to working capital adjustments. The gain of $70 million (US$63 million), which resulted from the cash proceeds and the disposition of net liabilities held for sale of $59 million (US$53 million), is presented as Earnings from discontinued operations. The results of operations, including revenues of $4 million and related cash flows, have also been presented as discontinued operations for the year ended December 31, 2014. These Offshore assets were included within the Gas Pipelines and Processing segment.

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- Definition The entire disclosure for long-lived, physical assets used in the normal conduct of business and not intended for resale. Includes, but is not limited to, accounting policies and methodology, roll forwards, depreciation, depletion and amortization expense, including composite depreciation, accumulated depreciation, depletion and amortization expense, useful lives and method used, income statement disclosures, assets held for sale and public utility disclosures. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 210 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.5-02.13-14) -URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 205 -SubTopic 20 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=64827811&loc=d3e1361-107760 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 360 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=64862545&loc=d3e2921-110230 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 360 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6391035&loc=d3e2868-110229 + Details
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