Analysis of the age of customer accounts receivable

Customer accounts receivable, net of allowance for doubtful accounts


As at (millions)	Note	Gross		Allowance		Net ¹
June 30, 2024
Less than 30 days past billing date		$	1,109	$	(17)	$	1,092
30-60 days past billing date			336		(15)		321
61-90 days past billing date			111		(18)		93
More than 90 days past billing date			214		(38)		176
Unbilled customer finance receivables			1,579		(32)		1,547
		$	3,349	$	(120)	$	3,229
Current ²	6(b)	$	2,766	$	(107)	$	2,659
Non-current ³	20		583		(13)		570
		$	3,349	$	(120)	$	3,229
December 31, 2023
Less than 30 days past billing date		$	1,077	$	(14)	$	1,063
30-60 days past billing date			550		(14)		536
61-90 days past billing date			139		(17)		122
More than 90 days past billing date			193		(36)		157
Unbilled customer finance receivables			1,630		(36)		1,594
		$	3,589	$	(117)	$	3,472
Current ²	6(b)	$	2,938	$	(103)	$	2,835
Non-current ³	20		651		(14)		637
		$	3,589	$	(117)	$	3,472

1	Net amounts represent customer accounts receivable for which an allowance had not been made as at the dates of the Consolidated statements of financial position (see Note 6(b)).

2	Presented in the Consolidated statements of financial position as Accounts receivable.

3	Presented in the Consolidated statements of financial position as Other long-term assets.

Summary of contract assets and related impairment allowance activity


Contract assets, net of impairment allowance

As at (millions)	Gross		Allowance		Net (Note 6(c))
June 30, 2024
To be billed and thus reclassified to accounts receivable during:
The 12-month period ending one year hence	$	583	$	(19)	$	564
The 12-month period ending two years hence		234		(7)		227
Thereafter		53		(1)		52
	$	870	$	(27)	$	843
December 31, 2023
To be billed and thus reclassified to accounts receivable during:
The 12-month period ending one year hence	$	616	$	(21)	$	595
The 12-month period ending two years hence		259		(9)		250
Thereafter		54		(1)		53
	$	929	$	(31)	$	898

Schedule of contractual maturities of undiscounted financial liabilities, Derivative

Non-derivative

Derivative

Composite long-term debt

Long-term

Non-interest

debt,

bearing

excluding

Currency swap agreement

As at June 30, 2024

financial

Short-term

leases ¹

Leases

amounts to be exchanged ²

amounts to be exchanged ³

(millions)

liabilities

borrowings ¹

(Note 26)

(Note 26)

(Receive)

Pay

(Receive)

Pay

Total

2024 (remainder of year)

$

2,821

$

36

$

2,419

$

392

$

(1,912)

$

1,889

$

(345)

$

340

$

5,640

2025

291

66

2,165

700

(227)

207

(237)

234

3,199

2026

88

66

2,516

555

(223)

206

—

3,208

2027

91

1,073

2,571

434

(1,714)

1,653

—

4,108

2028

67

—

4,215

286

(586)

577

—

4,559

2029-2033

7

—

11,158

573

(1,762)

1,662

—

11,638

Thereafter

—

12,674

340

(2,875)

2,734

—

12,873

Total

$

3,365

$

1,241

$

37,718

$

3,280

$

(9,299)

$

8,928

$

(582)

$

574

$

45,225

Total (Note 26(h))

$

40,627

1	Cash outflows in respect of interest payments on our short-term borrowings, commercial paper and amounts drawn under our credit facilities (if any) have been calculated based upon the interest rates and, if applicable, currency exchange rates, in effect as at June 30, 2024.

2

The amounts included in undiscounted non-derivative long-term debt in respect of U.S. dollar-denominated long-term debt, and the corresponding amounts in the long-term debt currency swap receive column, have been determined based upon the currency exchange rates in effect as at June 30, 2024. The hedged U.S. dollar-denominated long-term debt contractual amounts at maturity, in effect, are reflected in the long-term debt currency swap pay column as gross cash flows are exchanged pursuant to the currency swap agreements.

3

The amounts included in undiscounted short-term borrowing in respect of U.S. dollar-denominated short-term borrowings, and the corresponding derivative liability amounts, if any, included in the currency swap pay column amounts, have been determined based upon the currency exchange rates in effect as at June 30, 2024. The derivative liability hedging amounts, if any, for the hedged U.S. dollar-denominated short-term borrowings contractual amounts are included in the currency swap pay column amounts as net cash flows are exchanged pursuant to the currency swap agreements.


	Non-derivative								Derivative

					Composite long-term debt
					Long-term
	Non-interest				debt,
	bearing				excluding				Currency swap agreement						Currency swap agreement
As at December 31, 2023	financial		Short-term		leases ¹		Leases		amounts to be exchanged ²						amounts to be exchanged
(millions)	liabilities		borrowings ¹		(Note 26)		(Note 26)		(Receive)		Pay		Other		(Receive)		Pay		Total
2024	$	3,126	$	111	$	4,408	$	685	$	(1,271)	$	1,267	$	—	$	(572)	$	578	$	8,332
2025		164		—		2,027		547		(219)		207		1		—		—		2,727
2026		93		—		2,378		416		(215)		206		1		—		—		2,879
2027		152		—		2,383		331		(1,657)		1,653		1		—		—		2,863
2028		43		—		3,388		202		(567)		576		—		—		—		3,642
2029-2033		—		—		10,092		503		(1,702)		1,662		—		—		—		10,555
Thereafter		—		—		12,018		323		(2,778)		2,734		—		—		—		12,297
Total	$	3,578	$	111	$	36,694	$	3,007	$	(8,409)	$	8,305	$	3	$	(572)	$	578	$	43,295

					Total						$	39,597

1	Cash outflows in respect of interest payments on our short-term borrowings, commercial paper and amounts drawn under our credit facilities (if any) have been calculated based upon the interest rates and, if applicable, currency exchange rates in effect as at December 31, 2023.

2

The amounts included in undiscounted non-derivative long-term debt in respect of U.S. dollar-denominated long-term debt, and the corresponding amounts in the long-term debt currency swap receive column, have been determined based upon the currency exchange rates in effect as at December 31, 2023. The hedged U.S. dollar-denominated long-term debt contractual amounts at maturity, in effect, are reflected in the long-term debt currency swap pay column as gross cash flows are exchanged pursuant to the currency swap agreements.

Schedule of derivative financial instruments measured at fair value on a recurring basis


As at ($ in millions except price or rate)		June 30, 2024						December 31, 2023
		Maximum	Notional		Fair value ¹ and		Price or	Maximum	Notional		Fair value ¹ and		Price or
	Designation	maturity date	amount		carrying value		rate	maturity date	amount		carrying value		rate
Current derivative assets ²
Derivatives used to manage currency risk associated with
U.S. dollar-denominated revenues	HFT ⁴	2024	$	14	$	—	US$1.00: ₱59	2024	$	111	$	2	US$1.00: ₱56
U.S. dollar-denominated purchases	HFH ³	2025	$	366		5	US$1.00: C$1.35	2024	$	47		—	US$1.00: C$1.31
U.S. dollar-denominated debt (Notes 22, 26(c))	HFH ³	2024	$	1,209		7	US$1.00: C$1.36	2024	$	118		1	US$1.00: C$1.31
European euro functional currency operations purchased with U.S. dollar-denominated long-term debt ⁷ (Note 26(e))	HFH ⁵	2028	$	45		20	€1.00: US$1.09	2027	$	45		17	€1.00: US$1.09
Derivatives used to manage interest rate risk associated with Non-fixed rate credit facility amounts drawn (Note 26(e))	HFH ³	2028	$	12		3	3.5%	2024	$	11		2	3.5 %
Derivatives used to manage other price risk associated with Purchase of electrical power	HFT ⁴	2047	$	10(0.4 TWh ⁸)		—	$31.18/ MWh ⁸	2047	$	25 (0.4 TWh ⁸)		14	$30.60/ MWh ⁸
					$	35					$	36
Other long-term assets ² (Note 20)
Derivatives used to manage currency risk associated with
U.S. dollar-denominated long-term debt ⁶ (Note 26(b))	HFH ³	2048	$	3,635	$	20	US$1.00: C$1.29	—	$	—	$	—	—
European euro functional currency operations purchased with U.S. dollar-denominated long-term debt ⁷ (Note 26(e))	HFH ⁵	2028	$	569		10	€1.00: US$1.09	—	$	—		—	—
Derivatives used to manage interest rate risk associated with
Non-fixed rate credit facility amounts drawn (Note 26(e))	HFH ³	2028	$	206		1	3.5%	—	$	—		—	—
Derivatives used to manage other price risk associated with
Purchase of electrical power	HFT ⁴	2047	$	483(6.7 TWh ⁸)		90	$40.00/ MWh ⁸	2047	$	672 (6.9 TWh ⁸)		179	$39.52/ MWh ⁸
					$	121					$	179
Current derivative liabilities ²
Derivatives used to manage currency risk associated with
U.S. dollar-denominated revenues	HFT ⁴	2025	$	163	$	6	US$1.00: ₱57	2024	$	18	$	—	US$1.00: ₱55
U.S. dollar-denominated purchases	HFH ³	2025	$	31		—	US$1.00: C$1.36	2024	$	401		7	US$1.00: C$1.34
U.S. dollar-denominated debt (Notes 22, 26(c))	HFH ³	2024	$	1,623		1	US$1.00: C$1.37	2024	$	943		18	US$1.00: C$1.35
					$	7					$	25
Other long-term liabilities ² (Note 27)
Derivatives used to manage currency risk associated with
U.S. dollar-denominated long-term debt ⁶ (Note 26(c))	HFH ³	2049	$	2,893	$	50	US$1.00: C$1.33	2049	$	6,610	$	176	US$1.00: C$1.31
European euro functional currency operations purchased with U.S. dollar-denominated long-term debt ⁷ (Note 26(e))	HFH ⁵	—	$	—		—	—	2027	$	591		13	€1.00: US$1.09
Derivatives used to manage interest rate risk associated with
Non-fixed rate credit facility amounts drawn (Note 26(e))	HFH ³	—	$	—		—	—	2028	$	205		2	3.6%
					$	50					$	191

1

Fair value measured at the reporting date using significant other observable inputs (Level 2), except the fair value of virtual power purchase agreements (which we use to manage the price risk associated with the purchase of electrical power), which is measured at the reporting date using significant unobservable inputs (Level 3). Changes in the fair value of derivative financial instruments classified as Level 3 in the fair value hierarchy were as follows:


	Six months
Periods ended June 30	2024		2023
Unrealized changes in virtual power purchase agreements forward element
Included in net income, excluding income taxes	$	(103)	$	(26)
Balance, beginning of period		193		193
Balance, end of period	$	90	$	167

2	Caption reflects Consolidated statement of financial position line item where derivative financial instruments are presented. Derivative financial assets and liabilities are not set off.

3

Designated as held for hedging (HFH) upon initial recognition (cash flow hedging item); hedge accounting is applied. Unless otherwise noted, hedge ratio is 1:1 and is established by assessing the degree of matching between the notional amounts of hedging items and the notional amounts of the associated hedged items.

4	Designated as held for trading (HFT) and classified as fair value through net income upon initial recognition; hedge accounting is not applied.

5	Designated as a hedge of a net investment in a foreign operation; hedge accounting is applied. Hedge ratio is 1:1 and is established by assessing the degree of matching between the notional amounts of hedging items and the notional amounts of the associated hedged items.

6	We designate only the spot element as the hedging item. As at June 30, 2024, the foreign currency basis spread included in the fair value of the derivative instruments, which is used for purposes of assessing hedge ineffectiveness, was $119 (December 31, 2023 – $163).

7	We designate only the spot element as the hedging item. As at June 30, 2024, the foreign currency basis spread included in the fair value of the derivative instruments, which is used for purposes of assessing hedge ineffectiveness, was $3 (December 31, 2023 - $3).

8	Terawatt hours (TWh) are 1x10⁹ kilowatt hours and megawatt hours (MWh) are 1x10³ kilowatt hours.

Schedule of long-term debt amortized cost and fair value

As at (millions)

June 30, 2024

December 31, 2023

Carrying

value

Fair value

value

Fair value

Long-term debt, excluding leases (Note 26)

$

25,463

$

24,203

$

24,735

$

23,853

Schedule of gains and losses arising from derivative instruments classified as held for trading


	Gain (loss) on derivatives recognized in income
	Three months				Six months
Periods ended June 30 (millions)	2024		2023		2024		2023
Derivatives used to manage currency risk	$	(5)	$	2	$	(6)	$	5
Unrealized changes in virtual power purchase agreements forward element	$	(37)	$	(7)	$	(103)	$	(26)