DERIVATIVE FINANCIAL INSTRUMENTS (Tables)

12 Months Ended

Dec. 31, 2023

Disclosure of detailed information about financial instruments [abstract]

RISK MANAGEMENT AND FINANCIAL INSTRUMENTS

The aggregate notional amount of the company’s derivative positions as at December 31, 2023 and 2022 is as follows:

AS AT DEC. 31 (MILLIONS)	Note	2023		2022
Foreign exchange	(a)	$	58,175	$	50,601
Interest rates	(b)	124,265		61,939
Equity derivatives	(c)	2,017		1,942
Commodity instruments	(d)
Energy (GWh)		98,345		69,902
Natural gas (MMBtu – 000’s)		144,104		128,381

The company held the following foreign exchange contracts with notional amounts as at December 31, 2023 and 2022:

	Notional Amount (U.S. Dollars)				Average Exchange Rate
(MILLIONS)	2023		2022		2023	2022
Foreign exchange contracts
Canadian dollars	$	7,360	$	7,381	0.76	0.76
British pounds	7,608		6,880		1.07	1.12
European Union euros	14,814		10,074		1.09	1.01
Australian dollars	3,417		4,088		0.69	0.69
Indian rupee	5,233		3,921		85.57	73.72
Korean won1	1,091		923		1,303	1,293
Chinese yuan1	3,083		4,166		6.86	6.07
Japanese yen1	77		378		138.41	116.26
Colombian pesos1	2,652		355		4,629	4,800
Brazilian reais	3,969		1,371		0.18	0.16
Swedish krona	—		—			—
Other currencies	1,532		2,764		Various	Various
Cross currency interest rate swaps
Canadian dollars	6,457		5,673		0.80	0.77
Australian dollars	502		634		0.68	0.93
Japanese yen1	—		275		—	130.68
British pounds	—		243		—	1.21
Brazilian reais1	—		749		—	0.19
Foreign exchange options
Indian rupee	379		485		74.20	78.73

1.Average rate is quoted using USD as base currency.

The following table presents the change in fair values of the company’s derivative positions during the years ended December 31, 2023 and 2022, for derivatives that are fair valued through profit or loss, and derivatives that qualify for hedge accounting:

(MILLIONS)	Unrealized Gains During 2023		Unrealized Losses During 2023		Net Change During 2023		Net Change During 2022
Foreign exchange derivatives	$	137	$	(90)	$	47	$	23
Interest rate derivatives	205		(215)		(10)		419
Equity derivatives	—		(32)		(32)		(296)
Commodity derivatives	221		(123)		98		(292)
	$	563	$	(460)	$	103	$	(146)

The following table presents the notional amounts underlying the company’s derivative instruments by term to maturity as at December 31, 2023 and 2022, for derivatives that are classified as fair value through profit or loss, and derivatives that qualify for hedge accounting:

	2023								2022
AS AT DEC. 31 (MILLIONS)	<1 Year		1 to 5 Years		>5 Years		Total Notional Amount		Total Notional Amount
Fair value through profit or loss
Foreign exchange derivatives	$	4,295	$	892	$	946	$	6,133	$	7,075
Interest rate derivatives	24,234		19,941		925		45,100		19,976
Equity derivatives	1,231		786		—		2,017		1,942
Commodity instruments
Energy (GWh)	8,482		25,938		34,974		69,394		51,770
Natural gas (MMBtu – 000’s)	85,583		9,135		—		94,718		60,578
Elected for hedge accounting
Foreign exchange derivatives	$	17,987	$	32,628	$	1,426	$	52,041	$	43,286
Interest rate derivatives	19,308		53,331		6,526		79,165		41,963
Equity derivatives	—		—		—		—		—
Commodity instruments
Energy (GWh)	5,471		10,514		12,966		28,951		18,133
Natural gas (MMBtu – 000’s)	37,142		12,244		—		49,386		67,803

Disclosure of derivatives elected for hedge accounting

The following table classifies derivatives elected for hedge accounting during the years ended December 31, 2023 and 2022 as either cash flow hedges or net investment hedges. Changes in the fair value of the effective portion of the hedge are recorded in either other comprehensive income or net income, depending on the hedge classification, whereas changes in the fair value of the ineffective portion of the hedge are recorded in net income:

	2023						2022
FOR THE YEARS ENDED DEC. 31 (MILLIONS)	Notional		Effective Portion		Ineffective Portion		Notional		Effective Portion		Ineffective Portion
Cash flow hedges1	$	84,119	$	(754)	$	(12)	$	49,199	$	2,081	$	13
Net investment hedges	45,979		(1,200)		—		35,438		2,998		—
	$	130,098	$	(1,954)	$	(12)	$	84,637	$	5,079	$	13

1.Notional amount does not include 28,952 GWh and 49,386 MMBtu – 000’s – of commodity derivatives as at December 31, 2023 (2022 – 18,133 GWh, 67,803 MMBtu – 000’s).