Notes

Notes

1. Description of TransCanada's Business
2. Accounting Policies
3. Accounting Changes
4. Segmented Information
5. Plant, Property and Equipment
6. Goodwill
7. Intangibles and Other Assets
8. Joint Venture Investments
9. Acquisitions and Dispositions
10. Long-Term Debt
11. Long-Term Debt of Joint Ventures
12. Junior Subordinated Notes
13. Deferred Amounts
14. Rate Regulated Businesses
15. Non-Controlling Interests
16. Common Shares
17. Preferred Shares
18. Risk Management and Financial Instruments
19. Income Taxes
20. Notes Payable
21. Asset Retirement Obligations
22. Employee Future Benefits
23. Changes In Operating Working Capital
24. Commitments, Contingencies and Guarantees
25. Subsequent Events

Note 4: Segmented Information

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Effective January 1, 2009, TransCanada revised its presentation of certain income and expense items in the Consolidated Statement of Income to better reflect the operating and financing structure of the Company. To conform with the new presentation, certain of the income and expense amounts pertaining to operations that were previously classified on the Consolidated Income Statement as Other Expenses/(Income) are now included in Operating and Other Expenses/(Income). Depreciation expense has been redefined as Depreciation and Amortization expense and includes amortization of $58 million in 2009 (2008 and 2007 — $58 million), for PPAs, which was previously included in Commodity Purchases Resold. Support services costs previously allocated to Pipelines and Energy of $112 million in 2009 (2008 — $106 million; 2007 — $97 million) are now included in Corporate. In addition, amounts related to Interest Expense and Interest Expense of Joint Ventures, Interest Income and Other, Income Taxes and Non-Controlling Interests are no longer reported on a segmented basis. Segmented information has been retroactively reclassified to reflect these changes. These changes had no impact on reported consolidated Net Income.

Year ended December 31, 2009 (millions of dollars) Pipelines  Energy  Corporate  Total 
Revenues 4,729  4,237    8,966 
Plant operating costs and other (1,655) (1,595) (117) (3,367)
Commodity purchases resold   (1,511)   (1,511)
Other income 48  1    49 
  3,122  1,132  (117) 4,137 
Depreciation and amortization (1,030) (347)   (1,377)
  2,092  785  (117) 2,760 
Interest expense       (954)
Interest expense of joint ventures       (64)
Interest income and other       121 
Income taxes       (387)
Non-controlling interests       (96)
Net Income       1,380 
Preferred share dividends       (6)
Net Income Applicable to Common Shares       1,374 
         
Year ended December 31, 2008 (millions of dollars) Pipelines  Energy  Corporate  Total 
Revenues 4,650  3,969  –  8,619 
Plant operating costs and other (1,645) (1,259) (110) (3,014)
Commodity purchases resold –  (1,501) –  (1,501)
Calpine bankruptcy settlements 279  –  –  279 
Writedown of Broadwater LNG project costs –  (41) –  (41)
Other income 31  38 
  3,315  1,169  (104) 4,380 
Depreciation and amortization (989) (258) –  (1,247)
  2,326  911  (104) 3,133 
Interest expense       (943)
Interest expense of joint ventures       (72)
Interest income and other       54 
Income taxes       (602)
Non-controlling interests       (130)
Net Income       1,440 
         
Year ended December 31, 2007 (millions of dollars) Pipelines  Energy  Corporate  Total 
Revenues 4,712  4,116  –  8,828 
Plant operating costs and other (1,590) (1,336) (104) (3,030)
Commodity purchases resold (72) (1,829) –  (1,901)
Other income 27  19  48 
  3,077  970  (102) 3,945 
Depreciation and amortization (1,021) (216) –  (1,237)
  2,056  754  (102) 2,708 
Interest expense       (943)
Interest expense of joint ventures       (75)
Interest income and other       120 
Income taxes       (490)
Non-controlling interests       (97)
Net Income       1,223 

Total Assets

December 31 (millions of dollars) 2009 2008
Pipelines 29,508 25,020
Energy 12,477 12,006
Corporate 1,856 2,388
  43,841 39,414

Geographic Information

Year ended December 31 (millions of dollars) 2009 2008 2007
Revenues(1)      
Canada — domestic 5,177 4,599 5,019
Canada — export 756 1,125 1,006
United States and other 3,033 2,895 2,803
  8,966 8,619 8,828
(1) Revenues are attributed based on the country in which the product or service originated.
December 31 (millions of dollars) 2009 2008
Plant, Property and Equipment    
Canada 20,266 18,041
United States 12,441 10,973
Mexico 172 175
  32,879 29,189

Capital Expenditures

Year ended December 31 (millions of dollars) 2009 2008 2007
Pipelines 3,904 1,854 564
Energy 1,487 1,266 1,079
Corporate 26 14 8
  5,417 3,134 1,651