FORM 6-K
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Report of Foreign Private Issuer
Pursuant to Rule 13a-16
or 15d-16
of the Securities Exchange Act of 1934
For the month of July, 2014
TRANSALTA CORPORATION
(Translation of registrant’s name into English)
110 - 12th Avenue S.W., Box 1900, Station “M”, Calgary, Alberta, T2P 2M1
(Address of principal executive offices)
Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F.
Form 20-F____ Form 40-F X
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): ____
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): ____
1 |
I
The documents listed below in this Section and filed as Exhibits 13.1 and 13.2 to this form 6-K are hereby filed with the Securities and Exchange Commission for the purpose of being and hereby are incorporated by reference into the following registration statements filed by TransAlta Corporation under the Securities Act of 1933, as amended:
Form | Registration No. |
S-8 | 333-72454 |
S-8 | 333-101470 |
F-10 | 333-185157 |
II
The document listed below in this Section as 99.1 is being furnished, not filed, and will not be incorporated by reference into any registration statement filed by TransAlta Corporation under the Securities Act of 1933, as amended.
99.1 | Press release dated July 30, 2014. |
2 |
Signatures
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
TransAlta Corporation | |
Date: July 30, 2014 |
By: /s/Donald Tremblay Donald Tremblay Chief Financial Officer |
3 |
EXHIBIT INDEX
13.1 | Consolidated comparative interim unaudited financial statements of the registrant for the three month period ended June 30, 2014. |
13.2 | Management’s Discussion and Analysis of Financial Condition and Results of Operations of the registrant as at and for the period ended June 30, 2014. |
31.1 | Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. |
31.2 | Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. |
32.1 | Certification of Chief Executive Officer regarding Periodic Report Containing Financial Statements. |
32.2 | Certification of Chief Financial Officer regarding Periodic Report Containing Financial Statements. |
99.1 | Press release dated July 30, 2014. |
4 |
Exhibit 31.1
CERTIFICATIONS
I, Dawn L. Farrell, certify that:
1. | I have reviewed this quarterly report on Form 6-K of TransAlta Corporation; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or
omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements
were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in
this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant
as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officer(s) and I are responsible for establishing and
maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) for the registrant and
have: |
(a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures
to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated
subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being
prepared; |
(b) | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and
presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the
period covered by this report based on such evaluation; and |
(c) | Disclosed in this report any change in the registrant’s internal control over financial
reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter
in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s
internal control over financial reporting; and |
5. | The registrant’s other certifying officer(s) and I have disclosed, based on our most recent
evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s
board of directors (or persons performing the equivalent functions): |
(a) | all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
(b) | any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
|
/s/ Dawn L. Farrell |
Dated July 30, 2014 |
Dawn L. Farrell |
|
President and Chief Executive Officer |
5 |
Exhibit 31.2
CERTIFICATIONS
I, Donald Tremblay, certify that:
1. | I have reviewed this quarterly report on Form 6-K of TransAlta Corporation; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or
omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements
were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in
this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant
as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officer(s) and I are responsible for establishing and
maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) for the registrant and
have: |
(a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures
to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated
subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being
prepared; |
(b) | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and
presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the
period covered by this report based on such evaluation; and |
(c) | Disclosed in this report any change in the registrant’s internal control over financial
reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter
in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s
internal control over financial reporting; and |
5. | The registrant’s other certifying officer(s) and I have disclosed, based on our most recent
evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s
board of directors (or persons performing the equivalent functions): |
(a) | all significant deficiencies and material weaknesses in the design or operation of internal control
over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize
and report financial information; and |
(b) | any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
|
/s/ Donald Tremblay |
Dated July 30, 2014 |
Donald Tremblay |
|
Chief Financial Officer |
6 |
Exhibit 32.1
Certification of Chief Executive Officer
Pursuant to 18 U.S.C. § 1350, as created by Section 906 of the Sarbanes-Oxley Act of 2002, the undersigned officer of TransAlta Corporation (the “Company”) hereby certifies, to such officer’s knowledge, that: |
(i) | the accompanying Report of Foreign Private Issuer on Form 6-K of the Company (the “Report”) fully complies with the requirements of Section 13(a) or Section 15(d), as applicable, of the Securities Exchange Act of 1934, as amended; and |
(ii) | the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. |
|
/s/ Dawn L. Farrell |
Dated July 30, 2014 |
Dawn L. Farrell |
|
President and Chief Executive Officer |
7 |
Exhibit 32.2
Certification of Chief Financial Officer
Pursuant to 18 U.S.C. § 1350, as created by Section 906 of the Sarbanes-Oxley Act of 2002, the undersigned officer of TransAlta Corporation (the “Company”) hereby certifies, to such officer’s knowledge, that:
(i) | the accompanying Report of Foreign Private Issuer on Form 6-K of the Company (the “Report”) fully complies with the requirements of Section 13(a) or Section 15(d), as applicable, of the Securities Exchange Act of 1934, as amended; and |
(ii) | the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. |
|
/s/ Donald Tremblay |
Dated July 30, 2014 |
Donald Tremblay |
|
Chief Financial Officer |
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS (LOSS)
|
(in millions of Canadian dollars except per share amounts)
|
3 months ended June 30
|
6 months ended June 30
|
|||||||||||||||
Unaudited
|
2014
|
2013
|
2014
|
2013
|
||||||||||||
Revenues
|
491 | 542 | 1,266 | 1,082 | ||||||||||||
Fuel and purchased power
|
212 | 187 | 547 | 388 | ||||||||||||
Gross margin
|
279 | 355 | 719 | 694 | ||||||||||||
Operations, maintenance, and administration (Note 6)
|
122 | 133 | 266 | 248 | ||||||||||||
Depreciation and amortization
|
132 | 131 | 267 | 258 | ||||||||||||
Inventory writedown (reversal)
|
(4 | ) | 2 | - | 16 | |||||||||||
Restructuring provision
|
- | (2 | ) | - | (2 | ) | ||||||||||
Taxes, other than income taxes
|
7 | 8 | 14 | 15 | ||||||||||||
Operating income
|
22 | 83 | 172 | 159 | ||||||||||||
Finance lease income
|
12 | 12 | 24 | 23 | ||||||||||||
Equity loss (Note 3)
|
- | (3 | ) | - | (7 | ) | ||||||||||
Net interest expense (Note 4)
|
(62 | ) | (63 | ) | (128 | ) | (125 | ) | ||||||||
Foreign exchange gain (loss)
|
(2 | ) | 5 | (7 | ) | 4 | ||||||||||
Gain on sale of assets (Note 3)
|
1 | 10 | 1 | 10 | ||||||||||||
Loss on assumption of pension obligations
|
- | - | - | (29 | ) | |||||||||||
California claim (Note 5)
|
(5 | ) | - | (5 | ) | - | ||||||||||
Insurance recovery (Note 6)
|
2 | - | 2 | - | ||||||||||||
Earnings (loss) before income taxes
|
(32 | ) | 44 | 59 | 35 | |||||||||||
Income tax expense (recovery) (Note 7)
|
(3 | ) | 10 | 15 | (7 | ) | ||||||||||
Net earnings (loss)
|
(29 | ) | 34 | 44 | 42 | |||||||||||
Net earnings (loss) attributable to:
|
||||||||||||||||
TransAlta shareholders
|
(40 | ) | 25 | 18 | 23 | |||||||||||
Non-controlling interests (Note 8)
|
11 | 9 | 26 | 19 | ||||||||||||
(29 | ) | 34 | 44 | 42 | ||||||||||||
Net earnings (loss) attributable to TransAlta shareholders
|
(40 | ) | 25 | 18 | 23 | |||||||||||
Preferred share dividends (Note 14)
|
10 | 10 | 19 | 19 | ||||||||||||
Net earnings (loss) attributable to common shareholders
|
(50 | ) | 15 | (1 | ) | 4 | ||||||||||
Weighted average number of common shares outstanding in the period (millions)
|
272 | 262 | 271 | 260 | ||||||||||||
Net earnings (loss) per share attributable to common shareholders, basic and diluted
|
(0.18 | ) | 0.06 | - | 0.02 | |||||||||||
See accompanying notes.
|
TRANSALTA CORPORATION
|
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
|
(in millions of Canadian dollars)
|
3 months ended June 30
|
6 months ended June 30
|
|||||||||||||||
Unaudited
|
2014
|
2013
|
2014
|
2013
|
||||||||||||
Net earnings (loss)
|
(29 | ) | 34 | 44 | 42 | |||||||||||
Net actuarial gains (losses) on defined benefit plans, net of tax(1)
|
(6 | ) | 4 | (11 | ) | 11 | ||||||||||
Reclassification of losses on derivatives designated as cash flow
hedges to non-financial assets, net of tax(2)
|
- | - | - | 1 | ||||||||||||
Total items that will not be reclassified subsequently to net earnings
|
(6 | ) | 4 | (11 | ) | 12 | ||||||||||
Gains (losses) on translating net assets of foreign operations
|
(33 | ) | 7 | 20 | 32 | |||||||||||
Reclassification of translation gains on net assets of divested
foreign operations (Note 3)
|
(6 | ) | - | (6 | ) | - | ||||||||||
Gains (losses) on financial instruments designated as hedges of
foreign operations, net of tax(3)
|
29 | (8 | ) | (18 | ) | (29 | ) | |||||||||
Reclassification of losses on financial instruments designated as
hedges of divested foreign operations, net of tax (4) (Note 3)
|
7 | - | 7 | - | ||||||||||||
Gains (losses) on derivatives designated as cash flow hedges, net of tax(5)
|
(23 | ) | 13 | (11 | ) | 27 | ||||||||||
Reclassification of (gains) losses on derivatives designated as
cash flow hedges to net earnings, net of tax(6)
|
42 | (20 | ) | 22 | (39 | ) | ||||||||||
Other comprehensive income (loss) of equity investees, net of tax(7)
|
- | 2 | - | - | ||||||||||||
Total items that will be reclassified subsequently to net earnings
|
16 | (6 | ) | 14 | (9 | ) | ||||||||||
Other comprehensive income (loss)
|
10 | (2 | ) | 3 | 3 | |||||||||||
Total comprehensive income (loss)
|
(19 | ) | 32 | 47 | 45 | |||||||||||
Total comprehensive income (loss) attributable to:
|
||||||||||||||||
TransAlta shareholders
|
(30 | ) | 22 | 15 | 18 | |||||||||||
Non-controlling interests
|
11 | 10 | 32 | 27 | ||||||||||||
(19 | ) | 32 | 47 | 45 |
(1) Net of income tax recovery of 3 and 4 for the three and six months ended June 30, 2014 (2013 - 2 and 4 expense), respectively.
|
(2) Net of income tax recovery of 1 for the six months ended June 30, 2013.
|
(3) Net of income tax expense of 4 and recovery of 3 for the three and six months ended June 30, 2014 (2013 - 1 and 4 recovery), respectively.
|
(4) Net of income tax recovery of 1 for the three and six months ended June 30, 2014 (2013 - nil).
|
(5) Net of income tax recovery of 9 and 7 for the three and six months ended June 30, 2014 (2013 - 2 and 4 recovery), respectively.
|
(6) Net of income tax recovery of 7 and 6 for the three and six months ended June 30, 2014 (2013 - 2 and 5 expense), respectively.
|
(7) Net of income tax of nil for the three and six months ended June 30, 2013 (2013 - 1 and nil), respectively.
|
TRANSALTA CORPORATION
|
CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
|
(in millions of Canadian dollars)
|
June 30, 2014
|
Dec. 31, 2013
|
|||||||
Unaudited
|
(Restated)*
|
|||||||
Cash and cash equivalents
|
94 | 42 | ||||||
Accounts receivable (Note 9)
|
328 | 473 | ||||||
Current portion of finance lease receivable
|
3 | 3 | ||||||
Collateral paid (Note 10)
|
17 | 20 | ||||||
Prepaid expenses
|
49 | 12 | ||||||
Risk management assets (Notes 9 and 10)
|
68 | 113 | ||||||
Inventory
|
118 | 77 | ||||||
Income taxes receivable
|
16 | 8 | ||||||
Assets held for sale (Note 3)
|
5 | - | ||||||
698 | 748 | |||||||
Investments (Note 3)
|
- | 192 | ||||||
Long-term portion of finance lease receivable
|
376 | 377 | ||||||
Property, plant, and equipment (Note 11)
|
||||||||
Cost
|
12,178 | 12,024 | ||||||
Accumulated depreciation
|
(5,044 | ) | (4,831 | ) | ||||
7,134 | 7,193 | |||||||
Goodwill
|
461 | 460 | ||||||
Intangible assets
|
321 | 323 | ||||||
Deferred income tax assets
|
97 | 118 | ||||||
Risk management assets (Notes 9 and 10)
|
117 | 116 | ||||||
Other assets
|
92 | 97 | ||||||
Total assets
|
9,296 | 9,624 | ||||||
Accounts payable and accrued liabilities
|
390 | 447 | ||||||
Current portion of decommissioning and other provisions
|
25 | 16 | ||||||
Risk management liabilities (Notes 9 and 10)
|
107 | 85 | ||||||
Income taxes payable
|
- | 3 | ||||||
Dividends payable (Note 13)
|
55 | 85 | ||||||
Current portion of finance lease obligation
|
9 | 8 | ||||||
Current portion of long-term debt (Notes 9 and 12)
|
574 | 209 | ||||||
1,160 | 853 | |||||||
Long-term debt (Notes 9 and 12)
|
3,442 | 4,113 | ||||||
Long-term portion of finance lease obligation
|
20 | 17 | ||||||
Decommissioning and other provisions
|
322 | 316 | ||||||
Deferred income tax liabilities
|
436 | 459 | ||||||
Risk management liabilities (Notes 9 and 10)
|
101 | 103 | ||||||
Defined benefit obligation and other long-term liabilities
|
327 | 340 | ||||||
Equity
|
||||||||
Common shares (Note 13)
|
2,960 | 2,913 | ||||||
Preferred shares (Note 14)
|
781 | 781 | ||||||
Contributed surplus
|
9 | 9 | ||||||
Deficit
|
(813 | ) | (735 | ) | ||||
Accumulated other comprehensive loss
|
(65 | ) | (62 | ) | ||||
Equity attributable to shareholders
|
2,872 | 2,906 | ||||||
Non-controlling interests (Note 8)
|
616 | 517 | ||||||
Total equity
|
3,488 | 3,423 | ||||||
Total liabilities and equity
|
9,296 | 9,624 |
* See Note 2(A) for prior period restatements.
|
Commitments (Note 15)
|
Contingencies (Note 16)
|
Subsequent events (Note 18)
|
See accompanying notes.
|
TRANSALTA CORPORATION
|
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
|
(in millions of Canadian dollars)
|
6 months ended June 30, 2014
|
Unaudited
|
Common shares
|
Preferred shares
|
Contributed
surplus
|
Deficit
|
Accumulated other
comprehensive
loss
|
Attributable to
shareholders
|
Attributable to
non-controlling
interests
|
Total
|
||||||||||||||||||||||||
Balance, Dec. 31, 2013
|
2,913 | 781 | 9 | (735 | ) | (62 | ) | 2,906 | 517 | 3,423 | ||||||||||||||||||||||
Net earnings
|
- | - | - | 18 | - | 18 | 26 | 44 | ||||||||||||||||||||||||
Other comprehensive income (loss):
|
||||||||||||||||||||||||||||||||
Net gains on translating net assets of
foreign operations, net of hedges and tax
|
- | - | - | - | 3 | 3 | - | 3 | ||||||||||||||||||||||||
Net gains on derivatives designated
as cash flow hedges, net of tax
|
- | - | - | - | 5 | 5 | 6 | 11 | ||||||||||||||||||||||||
Net actuarial losses on defined benefits
plans, net of tax
|
- | - | - | - | (11 | ) | (11 | ) | - | (11 | ) | |||||||||||||||||||||
Total comprehensive income (loss)
|
18 | (3 | ) | 15 | 32 | 47 | ||||||||||||||||||||||||||
Common share dividends
|
- | - | - | (97 | ) | - | (97 | ) | - | (97 | ) | |||||||||||||||||||||
Preferred share dividends
|
- | - | - | (19 | ) | - | (19 | ) | - | (19 | ) | |||||||||||||||||||||
Secondary offering of TransAlta
Renewables Inc. shares (Note 8)
|
- | - | - | 20 | - | 20 | 109 | 129 | ||||||||||||||||||||||||
Distributions paid, and payable,
to non-controlling interests
|
- | - | - | - | - | - | (42 | ) | (42 | ) | ||||||||||||||||||||||
Common shares issued
|
47 | - | - | - | - | 47 | - | 47 | ||||||||||||||||||||||||
Balance, June 30, 2014
|
2,960 | 781 | 9 | (813 | ) | (65 | ) | 2,872 | 616 | 3,488 |
6 months ended June 30, 2013
|
||||||||||||||||||||||||||||||||
Unaudited
|
Common shares
|
Preferred shares
|
Contributed
surplus
|
Deficit
|
Accumulated other
comprehensive
loss
|
Attributable to
shareholders
|
Attributable to
non-controlling
interests
|
Total
|
||||||||||||||||||||||||
Balance, Dec. 31, 2012
|
2,726 | 781 | 9 | (362 | ) | (136 | ) | 3,018 | 330 | 3,348 | ||||||||||||||||||||||
Net earnings
|
- | - | - | 23 | - | 23 | 19 | 42 | ||||||||||||||||||||||||
Other comprehensive income (loss):
|
||||||||||||||||||||||||||||||||
Net gains on translating net assets of
foreign operations, net of hedges and tax
|
- | - | - | - | 3 | 3 | - | 3 | ||||||||||||||||||||||||
Net gains (losses) on derivatives
designated as cash flow hedges, net of tax
|
- | - | - | - | (19 | ) | (19 | ) | 8 | (11 | ) | |||||||||||||||||||||
Net actuarial gains on defined benefits
plans, net of tax
|
- | - | - | - | 11 | 11 | - | 11 | ||||||||||||||||||||||||
Total comprehensive income (loss)
|
23 | (5 | ) | 18 | 27 | 45 | ||||||||||||||||||||||||||
Common share dividends
|
- | - | - | (151 | ) | - | (151 | ) | - | (151 | ) | |||||||||||||||||||||
Preferred share dividends
|
- | - | - | (19 | ) | - | (19 | ) | - | (19 | ) | |||||||||||||||||||||
Distributions paid, and payable,
to non-controlling interests
|
- | - | - | - | - | - | (35 | ) | (35 | ) | ||||||||||||||||||||||
Common shares issued
|
106 | - | - | - | - | 106 | - | 106 | ||||||||||||||||||||||||
Balance, June 30, 2013
|
2,832 | 781 | 9 | (509 | ) | (141 | ) | 2,972 | 322 | 3,294 |
TRANSALTA CORPORATION
|
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
|
(in millions of Canadian dollars)
|
3 months ended June 30
|
6 months ended June 30
|
|||||||||||||||
Unaudited
|
2014
|
2013
|
2014
|
2013
|
||||||||||||
Operating activities
|
||||||||||||||||
Net earnings (loss)
|
(29 | ) | 34 | 44 | 42 | |||||||||||
Depreciation and amortization
|
145 | 145 | 295 | 284 | ||||||||||||
Gain on sale of assets (Note 3)
|
(1 | ) | - | (1 | ) | - | ||||||||||
California claim (Note 5)
|
(28 | ) | - | (28 | ) | - | ||||||||||
Accretion of provisions
|
4 | 5 | 9 | 9 | ||||||||||||
Decommissioning and restoration costs settled
|
(4 | ) | (8 | ) | (7 | ) | (13 | ) | ||||||||
Deferred income tax recovery (Note 7)
|
(12 | ) | (8 | ) | (2 | ) | (33 | ) | ||||||||
Unrealized gain from risk management activities
|
40 | 18 | 38 | 59 | ||||||||||||
Unrealized foreign exchange gain (loss)
|
(1 | ) | (3 | ) | 8 | 1 | ||||||||||
Provisions
|
6 | 7 | 4 | - | ||||||||||||
Equity loss (Note 3)
|
- | 3 | - | 7 | ||||||||||||
Other non-cash items
|
(1 | ) | (8 | ) | (4 | ) | 8 | |||||||||
Cash flow from operations before changes in working capital
|
119 | 185 | 356 | 364 | ||||||||||||
Change in non-cash operating working capital balances
|
(68 | ) | (93 | ) | (26 | ) | (16 | ) | ||||||||
Cash flow from operating activities
|
51 | 92 | 330 | 348 | ||||||||||||
Investing activities
|
||||||||||||||||
Additions to property, plant, and equipment (Note 11)
|
(109 | ) | (157 | ) | (180 | ) | (282 | ) | ||||||||
Additions to intangibles
|
(7 | ) | (6 | ) | (13 | ) | (13 | ) | ||||||||
Addition to equity investments (Note 3)
|
(13 | ) | (10 | ) | (13 | ) | (10 | ) | ||||||||
Proceeds on sale of property, plant, and equipment
|
- | 1 | - | 1 | ||||||||||||
Proceeds on sale of equity investments (Note 3)
|
218 | - | 218 | - | ||||||||||||
Realized (gains) losses on financial instruments
|
3 | 14 | (13 | ) | 12 | |||||||||||
Net decrease in collateral received from counterparties
|
- | (1 | ) | - | (2 | ) | ||||||||||
Net (increase) decrease in collateral paid to counterparties
|
8 | (1 | ) | 4 | 2 | |||||||||||
Decrease in finance lease receivable
|
- | - | 1 | 1 | ||||||||||||
Other
|
- | 2 | - | 2 | ||||||||||||
Change in non-cash investing working capital balances
|
26 | (2 | ) | 17 | (21 | ) | ||||||||||
Cash flow from (used in) investing activities
|
126 | (160 | ) | 21 | (310 | ) | ||||||||||
Financing activities
|
||||||||||||||||
Net increase (decrease) in borrowings under credit facilities (Note 12)
|
(417 | ) | 162 | (533 | ) | 129 | ||||||||||
Repayment of long-term debt (Note 12)
|
(203 | ) | (3 | ) | (205 | ) | (5 | ) | ||||||||
Net proceeds on sale of additional non-controlling interest in subsidiary (Note 8)
|
129 | - | 129 | - | ||||||||||||
Issuance of long-term debt (Note 12)
|
434 | - | 434 | - | ||||||||||||
Dividends paid on common shares (Note 13)
|
(31 | ) | (43 | ) | (81 | ) | (63 | ) | ||||||||
Dividends paid on preferred shares (Note 14)
|
(10 | ) | (10 | ) | (19 | ) | (19 | ) | ||||||||
Realized gains (losses) on financial instruments
|
(2 | ) | - | 23 | - | |||||||||||
Distributions paid to subsidiaries' non-controlling interests (Note 8)
|
(18 | ) | (16 | ) | (44 | ) | (35 | ) | ||||||||
Decrease in finance lease obligation
|
(3 | ) | (4 | ) | (5 | ) | (4 | ) | ||||||||
Other
|
1 | - | 1 | (1 | ) | |||||||||||
Cash flow from (used in) financing activities
|
(120 | ) | 86 | (300 | ) | 2 | ||||||||||
Cash flow from operating, investing, and financing activities
|
57 | 18 | 51 | 40 | ||||||||||||
Effect of translation on foreign currency cash
|
- | (1 | ) | 1 | - | |||||||||||
Increase in cash and cash equivalents
|
57 | 17 | 52 | 40 | ||||||||||||
Cash and cash equivalents, beginning of period
|
37 | 50 | 42 | 27 | ||||||||||||
Cash and cash equivalents, end of period
|
94 | 67 | 94 | 67 | ||||||||||||
Cash income taxes paid
|
11 | 12 | 27 | 25 | ||||||||||||
Cash interest paid
|
82 | 81 | 121 | 120 |
3 months ended June 30
|
6 months ended June 30
|
|||||||||||||||
2014
|
2013
|
2014
|
2013
|
|||||||||||||
Interest on debt
|
58 | 58 | 119 | 118 | ||||||||||||
Capitalized interest
|
- | - | - | (2 | ) | |||||||||||
Interest expense
|
58 | 58 | 119 | 116 | ||||||||||||
Accretion of provisions
|
4 | 5 | 9 | 9 | ||||||||||||
Net interest expense
|
62 | 63 | 128 | 125 |
3 months ended June 30
|
6 months ended June 30
|
|||||||||||||||
2014
|
2013
|
2014
|
2013
|
|||||||||||||
Current income tax expense
|
9 | 18 | 17 | 26 | ||||||||||||
Adjustments in respect of deferred income tax of a prior period
|
1 | - | 2 | - | ||||||||||||
Deferred income tax recovery related to the origination and reversal of temporary differences
|
(28 | ) | (7 | ) | (17 | ) | (26 | ) | ||||||||
Deferred income tax recovery resulting from changes in tax rates or laws(1)
|
- | (1 | ) | - | (7 | ) | ||||||||||
Deferred tax recovery arising from previously unrecognized tax loss,
tax credit, or temporary difference of a prior period
|
(36 | ) | - | (37 | ) | - | ||||||||||
Deferred income tax expense arising from the writedown of
deferred income tax assets
|
51 | - | 50 | - | ||||||||||||
Income tax expense (recovery)
|
(3 | ) | 10 | 15 | (7 | ) | ||||||||||
(1) Relates to the impact of adjusting the deferred tax rate to incorporate the Ontario M&P tax credit. Previously, the Corporation had been using the Ontario general corporate tax rate of 11.5 per cent.
|
3 months ended June 30
|
6 months ended June 30
|
|||||||||||||||
2014
|
2013
|
2014
|
2013
|
|||||||||||||
Current income tax expense
|
9 | 18 | 17 | 26 | ||||||||||||
Deferred income tax recovery
|
(12 | ) | (8 | ) | (2 | ) | (33 | ) | ||||||||
Income tax expense (recovery)
|
(3 | ) | 10 | 15 | (7 | ) |
3 months ended June 30
|
6 months ended June 30
|
|||||||||||||||
2014
|
2013
|
2014
|
2013
|
|||||||||||||
Revenues
|
75 | 76 | 157 | 157 | ||||||||||||
Net earnings
|
18 | 16 | 38 | 35 | ||||||||||||
Total comprehensive income
|
19 | 19 | 51 | 47 | ||||||||||||
Amounts attributable to the non-controlling interest:
|
||||||||||||||||
Net earnings
|
9 | 8 | 19 | 17 | ||||||||||||
Total comprehensive income
|
9 | 9 | 25 | 24 | ||||||||||||
Distributions paid to the non-controlling interest
|
10 | 15 | 31 | 33 |
As at
|
June 30, 2014
|
Dec. 31, 2013
|
||||||
Current assets
|
44 | 56 | ||||||
Long-term assets
|
608 | 632 | ||||||
Current liabilities
|
(45 | ) | (56 | ) | ||||
Long-term liabilities
|
(54 | ) | (68 | ) | ||||
Total equity
|
(553 | ) | (564 | ) | ||||
Equity attributable to the non-controlling interest
|
(274 | ) | (280 | ) | ||||
Non-controlling interest share (per cent)
|
49.99 | 49.99 |
3 months ended June 30
|
6 months ended June 30
|
|||||||
2014
|
2014
|
|||||||
Revenues
|
50 | 118 | ||||||
Net earnings and total comprehensive income
|
6 | 28 | ||||||
Amounts attributable to the non-controlling interests:
|
||||||||
Net earnings and total comprehensive income
|
2 | 7 | ||||||
Distributions paid to non-controlling interests
|
8 | 13 |
As at
|
June 30, 2014
|
Dec. 31, 2013
|
||||||
Current assets
|
51 | 59 | ||||||
Long-term assets
|
1,926 | 1,954 | ||||||
Current liabilities
|
(101 | ) | (100 | ) | ||||
Long-term liabilities
|
(813 | ) | (846 | ) | ||||
Total equity
|
(1,063 | ) | (1,067 | ) | ||||
Equity attributable to non-controlling interests
|
(342 | ) | (237 | ) | ||||
Non-controlling interests share (per cent)
|
29.7 | 19.3 |
Description
|
Effects on fair values as at
June 30, 2014
|
Valuation
Technique
|
Unobservable input
|
Range
|
Unit contingent
power purchases
|
22
|
Historical
analysis
|
Price discount
|
0.3 - 1.7 per cent
|
Volumetric discount(1)
|
0 - 23 per cent
|
|||
Long-term power sale
|
235
|
Long-term
price forecast
|
Illiquid future
power prices (per MW)
|
U.S.$27 - U.S.$72
and $74 - $115
|
Coal supply
revenue sharing
|
(8)
|
Vanilla and exotic
option valuation
techniques
|
Volumes (MWh)
|
16- 25 per cent of
available generation
|
Illiquid commodity forward
price volatilities
|
6 - 27 per cent
|
|||
Illiquid future power
prices (per MWh)
|
U.S.$27 - U.S.$72
|
|||
Illiquid future coal
prices (per Ton)
|
U.S.$13 - U.S.$15
|
|||
Unit contingent
power sales
|
(2)
|
Black-Scholes
|
Illiquid commodity forward
price volatilities
|
40 per cent
|
(1) A change in the volumetric discount, could, depending on other market dynamics, result in a directionally similar change in the price discount.
|
Description
|
Effects on fair values as at
Dec. 31, 2013
|
Valuation
Technique
|
Unobservable input
|
Range
|
Unit contingent
power purchases
|
43
|
Historical
bootstrap
|
Price discount
|
0 - 2 per cent
|
Volumetric discount(1)
|
0 - 14 per cent
|
|||
Long-term power sale
|
225
|
Long-term
price forecast
|
Illiquid future
power prices (per MW)
|
$34.40 - $90.83
|
Coal supply
revenue sharing
|
(12)
|
Black-Scholes
|
Volumes (MWh)
|
18 - 25 per cent of
available generation
|
Illiquid future implied
volatilities in MidC power
|
35 per cent
|
|||
(5)
|
Black-Scholes
|
|||
Unit contingent
power sales
|
Illiquid commodity forward
price volatilities
|
55 per cent
|
||
(1) A change in the volumetric discount, could, depending on other market dynamics, result in a directionally similar change in the price discount.
|
Hedges
|
Non-Hedges
|
Total
|
||||||||||||||||||||||||||||||||||
Level I
|
Level II
|
Level III
|
Level I
|
Level II
|
Level III
|
Level I
|
Level II
|
Level III
|
||||||||||||||||||||||||||||
Net risk management assets (liabilities) at
Dec. 31, 2013
|
- | (66 | ) | 55 | - | 14 | 11 | - | (52 | ) | 66 | |||||||||||||||||||||||||
Changes attributable to:
|
||||||||||||||||||||||||||||||||||||
Market price changes on existing
contracts
|
- | (11 | ) | 17 | - | (32 | ) | 12 | - | (43 | ) | 29 | ||||||||||||||||||||||||
Market price changes on new contracts
|
- | 1 | - | - | (2 | ) | 8 | - | (1 | ) | 8 | |||||||||||||||||||||||||
Contracts settled
|
- | 9 | (1 | ) | - | 16 | (40 | ) | - | 25 | (41 | ) | ||||||||||||||||||||||||
Net risk management assets
(liabilities) June 30, 2014
|
- | (67 | ) | 71 | - | (4 | ) | (9 | ) | - | (71 | ) | 62 | |||||||||||||||||||||||
Additional Level III information:
|
||||||||||||||||||||||||||||||||||||
Gains recognized in OCI
|
17 | - | 17 | |||||||||||||||||||||||||||||||||
Total gains included in earnings
before income taxes
|
1 | 20 | 21 | |||||||||||||||||||||||||||||||||
Unrealized losses included in earnings
before income taxes relating to net
liabilities held at June 30, 2014
|
- | (20 | ) | (20 | ) |
Hedges
|
Non-Hedges
|
Total
|
||||||||||||||||||||||||||
Level I
|
Level II
|
Level III
|
Level II
|
Level III
|
Level II
|
Level III
|
||||||||||||||||||||||
Net risk management assets (liabilities) at
Dec. 31, 2012
|
- | (63 | ) | 3 | 79 | 28 | 16 | 31 | ||||||||||||||||||||
Changes attributable to:
|
||||||||||||||||||||||||||||
Market price changes on existing
contracts
|
- | (30 | ) | (3 | ) | 7 | 6 | (23 | ) | 3 | ||||||||||||||||||
Market price changes on new contracts
|
- | (1 | ) | - | (19 | ) | (15 | ) | (20 | ) | (15 | ) | ||||||||||||||||
Contracts settled
|
- | 3 | - | (36 | ) | (7 | ) | (33 | ) | (7 | ) | |||||||||||||||||
Transfers out of Level III
|
- | - | - | 1 | (1 | ) | 1 | (1 | ) | |||||||||||||||||||
Net risk management assets
(liabilities) at June 30, 2013
|
- | (91 | ) | - | 32 | 11 | (59 | ) | 11 | |||||||||||||||||||
Additional Level III information:
|
||||||||||||||||||||||||||||
Losses recognized in OCI
|
(3 | ) | - | (3 | ) | |||||||||||||||||||||||
Total losses included in earnings
before income taxes
|
- | (9 | ) | (9 | ) | |||||||||||||||||||||||
Unrealized losses included in earnings
before income taxes relating to net assets
held at June 30, 2013
|
- | (16 | ) | (16 | ) |
Hedges
|
Non-Hedges
|
Total
|
||||||||||||||||||||||||||||||||||
Level I
|
Level II
|
Level III
|
Level I
|
Level II
|
Level III
|
Level I
|
Level II
|
Level III
|
||||||||||||||||||||||||||||
Net risk management assets at
Dec. 31, 2013
|
- | 26 | - | - | 1 | - | - | 27 | - | |||||||||||||||||||||||||||
Changes attributable to:
|
||||||||||||||||||||||||||||||||||||
Market price changes on new
contracts
|
- | (23 | ) | - | - | (7 | ) | - | - | (30 | ) | - | ||||||||||||||||||||||||
Contracts settled
|
- | (11 | ) | - | - | - | - | - | (11 | ) | - | |||||||||||||||||||||||||
Net risk management
liabilities at June 30, 2014
|
- | (8 | ) | - | - | (6 | ) | - | - | (14 | ) | - |
Hedges
|
Non-Hedges
|
Total
|
||||||||||||||||||||||||||||||||||
Level I
|
Level II
|
Level III
|
Level I
|
Level II
|
Level III
|
Level I
|
Level II
|
Level III
|
||||||||||||||||||||||||||||
Net risk management assets (liabilities) at
Dec. 31, 2012
|
- | (50 | ) | - | - | 1 | - | - | (49 | ) | - | |||||||||||||||||||||||||
Changes attributable to:
|
||||||||||||||||||||||||||||||||||||
Market price changes on existing contracts
|
- | 68 | - | - | 1 | - | - | 69 | - | |||||||||||||||||||||||||||
Market price changes on new contracts
|
- | (1 | ) | - | - | 3 | - | - | 2 | - | ||||||||||||||||||||||||||
Contracts settled
|
- | 1 | - | - | (1 | ) | - | - | - | - | ||||||||||||||||||||||||||
Net risk management assets at June 30, 2013
|
- | 18 | - | - | 4 | - | - | 22 | - |
Fair value
|
||||||||||||||||||||
Level I
|
Level II
|
Level III
|
Total
|
Total carrying value
|
||||||||||||||||
Long-term debt(1) - June 30, 2014
|
- | 4,175 | - | 4,175 | 3,956 | |||||||||||||||
Long-term debt(1) - Dec. 31, 2013
|
- | 4,367 | - | 4,367 | 4,262 |
(1) Includes current portion and excludes $60 million (Dec. 31, 2013 - $60 million) of debt measured and carried at fair value. |
3 months ended June 30
|
6 months ended June 30
|
|||||||||||||||
2014
|
2013
|
2014
|
2013
|
|||||||||||||
Unamortized net gain at beginning of period
|
169 | 3 | 160 | 5 | ||||||||||||
New inception gains (losses)
|
4 | (1 | ) | 9 | (1 | ) | ||||||||||
Amortization recorded in net earnings during the period
|
(8 | ) | 3 | (4 | ) | 1 | ||||||||||
Unamortized net gain at end of period
|
165 | 5 | 165 | 5 |
As at | June 30, 2014 |
Dec. 31, 2013(Restated)*
|
||||||||||||||||||
Cash
flow
hedges
|
Fair value hedges
|
Not
designated
as a hedge
|
Total
|
Total
|
||||||||||||||||
Risk management assets
|
||||||||||||||||||||
Energy trading
|
||||||||||||||||||||
Current
|
- | - | 58 | 58 | 99 | |||||||||||||||
Long-term
|
101 | - | 8 | 109 | 101 | |||||||||||||||
Total energy trading risk
management assets
|
101 | - | 66 | 167 | 200 | |||||||||||||||
Other
|
||||||||||||||||||||
Current
|
9 | - | 1 | 10 | 14 | |||||||||||||||
Long-term
|
2 | 6 | - | 8 | 15 | |||||||||||||||
Total other risk
management assets
|
11 | 6 | 1 | 18 | 29 | |||||||||||||||
Risk management liabilities
|
||||||||||||||||||||
Energy trading
|
||||||||||||||||||||
Current
|
32 | - | 52 | 84 | 84 | |||||||||||||||
Long-term
|
65 | - | 27 | 92 | 102 | |||||||||||||||
Total energy trading risk
management liabilities
|
97 | - | 79 | 176 | 186 | |||||||||||||||
Other
|
||||||||||||||||||||
Current
|
16 | - | 7 | 23 | 1 | |||||||||||||||
Long-term
|
9 | - | - | 9 | 1 | |||||||||||||||
Total other risk
management liabilities
|
25 | - | 7 | 32 | 2 | |||||||||||||||
Net energy trading risk management assets (liabilities)
|
4 | - | (13 | ) | (9 | ) | 14 | |||||||||||||
Net other risk management assets (liabilities)
|
(14) | 6 | (6 | ) | (14 | ) | 27 | |||||||||||||
Net total risk management assets (liabilities)
|
(10 | ) | 6 | (19 | ) | (23 | ) | 41 | ||||||||||||
* See Note 2(A) for prior period restatements.
|
(Per cent)
|
Investment grade
|
Non-investment grade
|
Total
|
|||||||||
Accounts receivable
|
87 | 13 | 100 | |||||||||
Risk management assets
|
99 | 1 | 100 |
2014
|
2015
|
2016
|
2017
|
2018
|
2019 and thereafter
|
Total
|
||||||||||||||||||||||
Accounts payable and accrued liabilities
|
390 | - | - | - | - | - | 390 | |||||||||||||||||||||
Debt(1)
|
4 | 691 | 29 | 749 | 734 | 1,810 | 4,017 | |||||||||||||||||||||
Energy trading risk management (assets) liabilities
|
35 | 11 | 18 | 2 | (2 | ) | (55 | ) | 9 | |||||||||||||||||||
Other risk management (assets) liabilities
|
18 | (5 | ) | (1 | ) | 8 | (6 | ) | - | 14 | ||||||||||||||||||
Interest on long-term debt(2)
|
102 | 174 | 167 | 159 | 123 | 784 | 1,509 | |||||||||||||||||||||
Dividends payable
|
55 | - | - | - | - | - | 55 | |||||||||||||||||||||
Total
|
604 | 871 | 213 | 918 | 849 | 2,539 | 5,994 | |||||||||||||||||||||
(1) Excludes impact of hedge accounting and includes drawn credit facilities that are currently scheduled to mature in 2015 and 2017.
|
||||||||||||||||||||||||||||
(2) Not recognized as a financial liability on the Condensed Consolidated Statements of Financial Position.
|
Land
|
Thermal generation
|
Gas generation
|
Renewable generation
|
Mining property and equipment
|
Assets under construction
|
Capital spares and other(1)
|
Total
|
|||||||||||||||||||||||||
As at Dec. 31, 2013
|
77 | 2,952 | 912 | 2,242 | 578 | 153 | 279 | 7,193 | ||||||||||||||||||||||||
Additions
|
- | 4 | - | - | - | 167 | 9 | 180 | ||||||||||||||||||||||||
Additions - finance lease
|
- | - | - | - | 9 | - | - | 9 | ||||||||||||||||||||||||
Depreciation
|
- | (135 | ) | (50 | ) | (49 | ) | (27 | ) | - | (7 | ) | (268 | ) | ||||||||||||||||||
Revisions and additions to decommissioning
and restoration costs
|
- | 11 | 4 | - | 4 | - | - | 19 | ||||||||||||||||||||||||
Retirement of assets
|
- | (6 | ) | (1 | ) | (1 | ) | (1 | ) | - | - | (9 | ) | |||||||||||||||||||
Change in foreign exchange rates
|
- | 2 | 9 | - | - | - | 1 | 12 | ||||||||||||||||||||||||
Transfers
|
2 | 54 | 32 | 13 | 3 | (108 | ) | 2 | (2 | ) | ||||||||||||||||||||||
As at June 30, 2014
|
79 | 2,882 | 906 | 2,205 | 566 | 212 | 284 | 7,134 | ||||||||||||||||||||||||
(1) Includes major spare parts and stand-by equipment available, but not in service, and spare parts used for routine, preventative or planned maintenance.
|
As at
|
June 30, 2014
|
Dec. 31, 2013
|
||||||||||||||||||||||
Carrying value
|
Face value
|
Interest(1)
|
Carrying value
|
Face value
|
Interest(1)
|
|||||||||||||||||||
Credit facilities(2)
|
321 | 320 | 1.9 | % | 852 | 852 | 2.6 | % | ||||||||||||||||
Debentures
|
1,041 | 1,051 | 6.1 | % | 1,269 | 1,251 | 6.1 | % | ||||||||||||||||
Senior notes(3)
|
2,253 | 2,242 | 4.9 | % | 1,797 | 1,809 | 5.6 | % | ||||||||||||||||
Non-recourse(4)
|
377 | 380 | 5.9 | % | 376 | 380 | 5.9 | % | ||||||||||||||||
Other
|
24 | 24 | 6.1 | % | 28 | 28 | 6.3 | % | ||||||||||||||||
4,016 | 4,017 | 4,322 | 4,320 | |||||||||||||||||||||
Less: recourse current portion
|
(539 | ) | (539 | ) | (209 | ) | (209 | ) | ||||||||||||||||
Less: non-recourse current portion
|
(35 | ) | (35 | ) | - | - | ||||||||||||||||||
Total long-term debt
|
3,442 | 3,443 | 4,113 | 4,111 |
(1) Interest is an average rate weighted by principal amounts outstanding before the effect of hedging.
|
(2) Composed of bankers' acceptances and other commercial borrowings under long-term committed credit facilities. Includes U.S.$300 million at June 30, 2014 (Dec. 31, 2013 - U.S.$300 million).
|
(3) U.S. face value at June 30, 2014 - U.S.$2.1 billion (Dec. 31, 2013 - U.S.$1.7 billion).
|
(4) Includes U.S.$20 million at June 30, 2014 (Dec. 31, 2013 - U.S.$20 million).
|
3 months ended June 30
|
6 months ended June 30
|
|||||||||||||||||||||||||||||||
2014
|
2013
|
2014
|
2013
|
|||||||||||||||||||||||||||||
Common shares (millions)
|
Amount
|
Common
shares
(millions)
|
Amount
|
Common shares (millions)
|
Amount
|
Common
shares
(millions)
|
Amount
|
|||||||||||||||||||||||||
Issued and outstanding, beginning of period
|
270.3 | 2,944 | 258.4 | 2,783 | 268.2 | 2,916 | 254.7 | 2,730 | ||||||||||||||||||||||||
Issued under the dividend reinvestment and optional
common share purchase plan
|
1.5 | 18 | 3.7 | 53 | 3.6 | 46 | 7.4 | 106 | ||||||||||||||||||||||||
271.8 | 2,962 | 262.1 | 2,836 | 271.8 | 2,962 | 262.1 | 2,836 | |||||||||||||||||||||||||
Amounts receivable under Employee Share Purchase
Plan
|
- | (2 | ) | - | (4 | ) | - | (2 | ) | - | (4 | ) | ||||||||||||||||||||
Issued and outstanding, end of period
|
271.8 | 2,960 | 262.1 | 2,832 | 271.8 | 2,960 | 262.1 | 2,832 |
Date
declared
|
Payment
date
|
Dividend per
share ($)
|
Total
dividends
|
Dividends
paid in cash
|
Dividends paid
in shares
|
||||||||||||
2014
|
|||||||||||||||||
Apr. 28, 2014
|
July 1, 2014
|
0.18 | 49 | 30 | 19 | ||||||||||||
Feb. 20, 2014
|
Apr. 1, 2014
|
0.18 | 48 | 31 | 17 | ||||||||||||
Oct. 30, 2013
|
Jan. 1, 2014
|
0.29 | 78 | 50 | 28 | ||||||||||||
2013
|
|||||||||||||||||
Apr. 22, 2013
|
June 28, 2013
|
0.29 | 76 | 21 | 55 | ||||||||||||
Jan. 28, 2013
|
Apr. 1, 2013
|
0.29 | 75 | 22 | 53 | ||||||||||||
Oct. 24, 2012
|
Jan. 1, 2013
|
0.29 | 73 | 20 | 53 |
Series A
|
Series C
|
Series E
|
|||||||||||||||||||||||
Date
declared
|
Payment
date
|
Dividend
per
share ($)
|
Total
dividends
|
Dividend
per
share ($)
|
Total
dividends
|
Dividend
per
share ($)
|
Total
dividends
|
||||||||||||||||||
2014
|
|||||||||||||||||||||||||
Apr. 28, 2014
|
June 30, 2014
|
0.2875 | 4 | 0.2875 | 3 | 0.3125 | 3 | ||||||||||||||||||
Feb. 20, 2014
|
March 31, 2014
|
0.2875 | 3 | 0.2875 | 3 | 0.3125 | 3 | ||||||||||||||||||
2013
|
|||||||||||||||||||||||||
Apr. 22, 2013
|
June 30, 2013
|
0.2875 | 4 | 0.2875 | 3 | 0.3125 | 3 | ||||||||||||||||||
Jan. 28, 2013
|
March 31, 2013
|
0.2875 | 3 | 0.2875 | 3 | 0.3125 | 3 |
3 months ended June 30, 2014
|
Generation
|
Energy
Trading
|
Corporate
|
Total
|
||||||||||||
Revenues
|
483 | 8 | - | 491 | ||||||||||||
Fuel and purchased power
|
212 | - | - | 212 | ||||||||||||
Gross margin
|
271 | 8 | - | 279 | ||||||||||||
Operations, maintenance, and administration
|
104 | 8 | 10 | 122 | ||||||||||||
Depreciation and amortization
|
125 | - | 7 | 132 | ||||||||||||
Inventory reversal
|
(4 | ) | - | - | (4 | ) | ||||||||||
Taxes, other than income taxes
|
7 | - | - | 7 | ||||||||||||
Intersegment cost allocation
|
4 | (4 | ) | - | - | |||||||||||
Operating income (loss)
|
35 | 4 | (17 | ) | 22 | |||||||||||
Finance lease income
|
12 | - | - | 12 | ||||||||||||
Gain on sale of assets
|
1 | - | - | 1 | ||||||||||||
California claim
|
- | (5 | ) | - | (5 | ) | ||||||||||
Insurance recovery
|
2 | - | - | 2 | ||||||||||||
Net interest expense
|
(62 | ) | ||||||||||||||
Foreign exchange loss
|
(2 | ) | ||||||||||||||
Loss before income taxes
|
(32 | ) |
3 months ended June 30, 2013
|
Generation
|
Energy
Trading
|
Corporate
|
Total
|
||||||||||||
Revenues
|
528 | 14 | - | 542 | ||||||||||||
Fuel and purchased power
|
187 | - | - | 187 | ||||||||||||
Gross margin
|
341 | 14 | - | 355 | ||||||||||||
Operations, maintenance, and administration
|
111 | 6 | 16 | 133 | ||||||||||||
Depreciation and amortization
|
125 | - | 6 | 131 | ||||||||||||
Inventory writedown
|
2 | - | - | 2 | ||||||||||||
Restructuring provision
|
(1 | ) | - | (1 | ) | (2 | ) | |||||||||
Taxes, other than income taxes
|
8 | - | - | 8 | ||||||||||||
Intersegment cost allocation
|
3 | (3 | ) | - | - | |||||||||||
Operating income (loss)
|
93 | 11 | (21 | ) | 83 | |||||||||||
Finance lease income
|
12 | - | - | 12 | ||||||||||||
Equity loss
|
(3 | ) | - | - | (3 | ) | ||||||||||
Gain on sale of assets
|
- | - | 10 | 10 | ||||||||||||
Net interest expense
|
(63 | ) | ||||||||||||||
Foreign exchange gain
|
5 | |||||||||||||||
Earnings before income taxes
|
44 |
6 months ended June 30, 2014
|
Generation
|
Energy
Trading
|
Corporate
|
Total
|
||||||||||||
Revenues
|
1,193 | 73 | - | 1,266 | ||||||||||||
Fuel and purchased power
|
547 | - | - | 547 | ||||||||||||
Gross margin
|
646 | 73 | - | 719 | ||||||||||||
Operations, maintenance, and administration
|
216 | 27 | 23 | 266 | ||||||||||||
Depreciation and amortization
|
254 | - | 13 | 267 | ||||||||||||
Taxes, other than income taxes
|
14 | - | - | 14 | ||||||||||||
Intersegment cost allocation
|
7 | (7 | ) | - | - | |||||||||||
Operating income (loss)
|
155 | 53 | (36 | ) | 172 | |||||||||||
Finance lease income
|
24 | - | - | 24 | ||||||||||||
Gain on sale of assets
|
1 | - | - | 1 | ||||||||||||
California claim
|
- | (5 | ) | - | (5 | ) | ||||||||||
Insurance recovery
|
2 | - | - | 2 | ||||||||||||
Net interest expense
|
(128 | ) | ||||||||||||||
Foreign exchange loss
|
(7 | ) | ||||||||||||||
Earnings before income taxes
|
59 |
6 months ended June 30, 2013
|
Generation
|
Energy
Trading
|
Corporate
|
Total
|
||||||||||||
Revenues
|
1,051 | 31 | - | 1,082 | ||||||||||||
Fuel and purchased power
|
388 | - | - | 388 | ||||||||||||
Gross margin
|
663 | 31 | - | 694 | ||||||||||||
Operations, maintenance, and administration
|
205 | 14 | 29 | 248 | ||||||||||||
Depreciation and amortization
|
247 | - | 11 | 258 | ||||||||||||
Inventory writedown
|
16 | - | - | 16 | ||||||||||||
Restructuring provision
|
(1 | ) | - | (1 | ) | (2 | ) | |||||||||
Taxes, other than income taxes
|
15 | - | - | 15 | ||||||||||||
Intersegment cost allocation
|
7 | (7 | ) | - | - | |||||||||||
Operating income (loss)
|
174 | 24 | (39 | ) | 159 | |||||||||||
Finance lease income
|
23 | - | - | 23 | ||||||||||||
Equity loss
|
(7 | ) | - | - | (7 | ) | ||||||||||
Gain on sale of assets
|
- | - | 10 | 10 | ||||||||||||
Net interest expense
|
(125 | ) | ||||||||||||||
Foreign exchange gain
|
4 | |||||||||||||||
Loss on assumption of pension obligations
|
(29 | ) | ||||||||||||||
Earnings before income taxes
|
35 |
Total segment assets
|
Generation
|
Energy
Trading
|
Corporate
|
Total
|
||||||||||||
June 30, 2014
|
8,767 | 195 | 334 | 9,296 | ||||||||||||
Dec. 31, 2013 (Restated)*
|
9,093 | 244 | 287 | 9,624 | ||||||||||||
* See Note 2(A) for prior period restatements.
|
3 months ended June 30
|
6 months ended June 30
|
|||||||||||||||
2014
|
2013
|
2014
|
2013
|
|||||||||||||
Depreciation and amortization expense on the Condensed Consolidated Statement of Earnings
|
132 | 131 | 267 | 258 | ||||||||||||
Depreciation included in fuel and purchased power
|
13 | 14 | 28 | 26 | ||||||||||||
Depreciation and amortization expense on the Condensed Consolidated Statements of Cash Flows
|
145 | 145 | 295 | 284 |
![]() |
TRANSALTA CORPORATION
SECOND QUARTER REPORT FOR 2014
|
3 months ended June 30
|
6 months ended June 30
|
|||||||||||||||
2014
|
2013
|
2014
|
2013
|
|||||||||||||
Revenues
|
491 | 542 | 1,266 | 1,082 | ||||||||||||
Comparable EBITDA(1)
|
213 | 247 | 523 | 515 | ||||||||||||
Net earnings (loss) attributable to common shareholders
|
(50 | ) | 15 | (1 | ) | 4 | ||||||||||
Comparable net earnings (loss) attributable to common shareholders(1)
|
(12 | ) | 9 | 35 | 41 | |||||||||||
Funds from operations(1)
|
154 | 184 | 392 | 377 | ||||||||||||
Cash flow from operating activities
|
51 | 92 | 330 | 348 | ||||||||||||
Free cash flow(1)
|
19 | 57 | 158 | 171 | ||||||||||||
Net earnings (loss) per share attributable to common shareholders, basic and diluted
|
(0.18 | ) | 0.06 | - | 0.02 | |||||||||||
Comparable net earnings (loss) per share(1)
|
(0.04 | ) | 0.03 | 0.13 | 0.16 | |||||||||||
Funds from operations per share(1)
|
0.57 | 0.70 | 1.45 | 1.45 | ||||||||||||
Free cash flow per share(1)
|
0.07 | 0.22 | 0.58 | 0.66 | ||||||||||||
Dividends paid per common share
|
0.18 | 0.29 | 0.47 | 0.58 | ||||||||||||
As at
|
June 30, 2014
|
Dec. 31, 2013(2)
|
||||||||||||||
Total assets
|
9,296 | 9,624 | ||||||||||||||
Total long-term liabilities
|
4,648 | 5,348 |
§
|
Comparable earnings before interest, taxes, depreciation, and amortization (“EBITDA”) for the second quarter of 2014 totalled $213 million with strong availability from our Generation Segment and improved operational performance at Canadian Coal. Results during the second quarter were consistent with our expectations to meet our full year EBITDA guidance of $1,015 million to $1,065 million. Comparable EBITDA decreased $34 million compared to the same period in 2013, primarily due to lower prices in Alberta which impacted our hydro, wind and gas assets in the province. Prices in Alberta averaged $42 per megawatt hour (“MWh”) during the second quarter of 2014 compared to $123 per MWh in the same period in 2013. Our strategy of being highly contracted generally limited the impacts of lower price volatility and lower prices in Alberta in the quarter.
|
§
|
For the six months ended June 30, 2014, comparable EBITDA was $523 million, $8 million higher than the same period in 2013, primarily due to strong earnings from our Energy Trading Segment in the first quarter of 2014, strong availability from our Generation Segment, and improved operational performance at Canadian Coal, partially offset by lower Alberta prices in the second quarter of 2014.
|
§
|
Funds from operations (“FFO”) for the three months ended June 30, 2014 was impacted by lower comparable EBITDA and decreased $30 million to $154 million, compared to the same period in 2013. Year-to-date FFO totalled $392 million, $15 million higher than the same period in 2013. We are still on track to meet our full year FFO guidance of between $743 million and $793 million.
|
(1)
|
These items are not defined under IFRS. Presenting these items from period to period provides management and investors with the ability to evaluate earnings trends more readily in comparison with prior periods’ results. Refer to the Funds from Operations and Free Cash Flow and Earnings and Other Measures on a Comparable Basis sections of this MD&A for further discussion of these items, including, where applicable, reconciliations to measures calculated in accordance with IFRS.
|
(2)
|
After giving effect to the reclassification described in the Current Accounting Changes section of this MD&A.
|
§
|
Second quarter comparable net loss attributable to common shareholders was $12 million ($0.04 net loss per share), down from comparable net earnings of $9 million ($0.03 net earnings per share) in the same period in 2013, due to the decrease in comparable EBITDA, partially offset by lower income tax expense.
|
§
|
Year-to-date comparable net earnings attributable to common shareholders were $35 million ($0.13 net earnings per share) in 2014, down from $41 million ($0.16 net earnings per share) in 2013. The increase in comparable EBITDA and lower income taxes were more than offset by higher depreciation and amortization, foreign exchange losses and income attributable to non-controlling interests.
|
§
|
Reported net loss attributable to common shareholders for the second quarter was $50 million ($0.18 net loss per share), down $65 million from net earnings of $15 million ($0.06 net earnings per share) in the same period in 2013. The decrease is driven by lower volumes of higher priced hedge contracts at Centralia Thermal, lower Alberta prices, and lower gains on sale of assets, partially offset by improved operational performance at Canadian Coal and lower income tax expense. The reported net loss for the second quarter of 2014 does not include the impact of certain de-designated hedges that settled in the period as these gains were recognized when they were de-designated in prior periods.
|
§
|
Year-to-date reported net loss attributable to common shareholders was $1 million ($0.00 net loss per share), down
|
|
$5 million from net earnings of $4 million ($0.02 net earnings per share) in 2013. The decrease is driven primarily by lower volumes of higher priced hedge contracts at Centralia Thermal, lower Alberta prices, and higher income tax expense, partially offset by strong results from our Energy Trading Segment, improved operational performance at Canadian Coal, and the one-time loss on assumption of pension obligations in the prior period. The year-to-date reported net earnings does not include the impact of certain de-designated hedges that settled in the period as these gains were recognized when they were de-designated in prior periods.
|
§
|
Entered into agreements to build and operate an AUD$570 million, 150 megawatt (“MW”) combined cycle gas power station in South Hedland, Western Australia. The fully contracted power station is expected to be commissioned and delivering power to customers in the first half of 2017.
|
§
|
Continued development with our joint venture partner of a $178 million natural gas pipeline to our Solomon power station. We hold a 43 per cent interest in the joint venture. The project is on schedule and within budget.
|
§
|
Completed the sale of our 50 per cent ownership of CE Generation LLC (“CE Gen”), the Blackrock Development Project (“Blackrock”), and CalEnergy, LLC (“CalEnergy”) for net proceeds of U.S.$188.5 million in the quarter.
|
§
|
Completed a secondary offering of TransAlta Renewables Inc. (“TransAlta Renewables”) shares in the second quarter for proceeds of approximately $129 million, net of offering costs.
|
§
|
Successfully completed an offering of U.S.$400 million of senior notes, due in June 2017.
|
3 months ended June 30
|
6 months ended June 30
|
|||||||||||||||
2014
|
2013
|
2014
|
2013
|
|||||||||||||
Availability (%)(1)
|
82.1 | 72.1 | 86.8 | 81.7 | ||||||||||||
Adjusted availability (%)(1),(2)
|
85.4 | 81.8 | 88.4 | 86.6 | ||||||||||||
Production (GWh)(1)
|
9,283 | 8,110 | 21,350 | 18,754 | ||||||||||||
Comparable EBITDA
|
||||||||||||||||
Generation Segment
|
||||||||||||||||
Canadian Coal
|
83 | 48 | 177 | 146 | ||||||||||||
U.S. Coal
|
14 | 21 | 31 | 33 | ||||||||||||
Gas
|
69 | 85 | 151 | 169 | ||||||||||||
Wind
|
33 | 46 | 95 | 96 | ||||||||||||
Hydro
|
20 | 52 | 39 | 76 | ||||||||||||
Total Generation Segment
|
219 | 252 | 493 | 520 | ||||||||||||
Energy Trading Segment
|
4 | 11 | 53 | 24 | ||||||||||||
Corporate Segment
|
(10 | ) | (16 | ) | (23 | ) | (29 | ) | ||||||||
Total comparable EBITDA
|
213 | 247 | 523 | 515 |
§
|
Canadian Coal: Comparable EBITDA increased to $83 million in the second quarter and $177 million year-to-date, compared to $48 million and $146 million, respectively, for the same periods in 2013. The improvement period over period is due to higher availability. In 2013, our results were impacted by the purchase of higher-priced power to settle existing financial contracts due to lower than expected generation during unplanned outages. Canadian Coal was not significantly impacted by the much lower average second quarter and year-to-date prices in Alberta due to the PPAs and long-term hedges in place for most of our capacity.
|
§
|
U.S. Coal: Comparable EBITDA was $14 million in the second quarter of 2014 compared to $21 million for the same period in 2013. Results in 2013 were positively impacted by higher priced hedge contracts.
|
§
|
Gas: Comparable EBITDA was $69 million in the second quarter and $151 million year-to-date, compared to $85 million and $169 million, respectively, for the same periods in 2013. The decrease in comparable EBITDA is primarily due to lower Alberta prices impacting results from the Poplar Creek facility and the effects of the new contract at Ottawa.
|
§
|
Wind: Comparable EBITDA was $33 million in the second quarter compared to $46 million for the same period in 2013. Lower Alberta prices impacted our revenue while production was slightly below 2013 in both Western and Eastern Canada. Wyoming Wind contributed 78 gigawatt hours (“GWh”) during the second quarter, compared to 164 GWh during the first quarter. Year-to-date comparable EBITDA for 2014 was down $1 million to $95 million compared to 2013, due to lower Alberta prices, partially offset by a full six months of operations at New Richmond and Wyoming Wind.
|
§
|
Hydro: Comparable EBITDA was $20 million in the second quarter and $39 million year-to-date, compared to $52 million and $76 million, respectively, for the same periods in 2013. Lower prices and low price volatility in Alberta limited our ability to take advantage of resource flexibility to produce electricity during higher priced hours. Additionally, lower water resource than in 2013 impacted our second quarter and year-to-date results.
|
(1)
|
Availability and production includes all generating assets (generation operations, finance leases, and equity investments).
|
(2)
|
Adjusted for economic dispatching at Centralia Thermal.
|
§
|
Energy Trading Segment: After generating substantial comparable EBITDA of $49 million in the first quarter of 2014, Energy Trading generated $4 million in the second quarter, down $7 million compared to the second quarter of 2013. Lower commodity price volatility in Alberta impacted Energy Trading’s ability to generate gross margin. Results from other markets in which we transact were consistent with 2013. Higher operations, maintenance, and administration (“OM&A”) costs resulting from higher corporate cost allocations and increased compensation costs also impacted Energy Trading’s results. Year-to-date comparable EBITDA in 2014 was $53 million, up $29 million from $24 million in the 2013 year-to-date period as a result of our ability to optimize our energy marketing assets during extraordinarily volatile market conditions caused by extreme weather events in the northeast during the first quarter.
|
§
|
Corporate Segment: Our Corporate Segment incurred lower costs in the second quarter of 2014 of $10 million, compared to $16 million in 2013, and $23 million in year-to-date 2014 compared to $29 million in the same period in 2013. The lower costs resulted from lower provisions for incentive-based compensation in the second quarter and a change allocation of overhead costs to our business units.
|
3 months ended June 30
|
6 months ended June 30
|
|||||||||||||||
2014
|
2013
|
2014
|
2013
|
|||||||||||||
Cash flow from operating activities
|
51 | 92 | 330 | 348 | ||||||||||||
Impacts associated with California claim
|
33 | - | 33 | - | ||||||||||||
Payment of restructuring costs
|
- | - | - | 4 | ||||||||||||
Non-comparable insurance proceeds
|
(6 | ) | - | (6 | ) | - | ||||||||||
Timing of payments related to assumption of pension obligations
|
- | (2 | ) | - | 7 | |||||||||||
Decrease in finance lease receivable
|
- | - | 1 | 1 | ||||||||||||
Flood related maintenance costs
|
8 | 1 | 8 | 1 | ||||||||||||
Change in non-cash operating working capital balances
|
68 | 93 | 26 | 16 | ||||||||||||
FFO
|
154 | 184 | 392 | 377 | ||||||||||||
Deduct:
|
||||||||||||||||
Sustaining capital expenditures
|
(107 | ) | (101 | ) | (171 | ) | (152 | ) | ||||||||
Dividends paid on preferred shares
|
(10 | ) | (10 | ) | (19 | ) | (19 | ) | ||||||||
Distributions paid to subsidiaries' non-controlling interests
|
(18 | ) | (16 | ) | (44 | ) | (35 | ) | ||||||||
Free cash flow
|
19 | 57 | 158 | 171 | ||||||||||||
Weighted average number of common shares outstanding in the period
|
272 | 262 | 271 | 260 | ||||||||||||
FFO per share
|
0.57 | 0.70 | 1.45 | 1.45 | ||||||||||||
Free cash flow per share
|
0.07 | 0.22 | 0.58 | 0.66 |
3 months ended June 30
|
6 months ended June 30
|
|||||||||||||||
2014
|
2013
|
2014
|
2013
|
|||||||||||||
Comparable EBITDA
|
213 | 247 | 523 | 515 | ||||||||||||
Realized gains from risk management activities
|
5 | 10 | 10 | 10 | ||||||||||||
Interest expense
|
(58 | ) | (58 | ) | (119 | ) | (116 | ) | ||||||||
Provisions
|
6 | 7 | 4 | - | ||||||||||||
Current income tax expense
|
(9 | ) | (18 | ) | (17 | ) | (26 | ) | ||||||||
Realized foreign exchange gain (loss)
|
(3 | ) | 2 | 1 | 5 | |||||||||||
Decommissioning and restoration costs settled
|
(4 | ) | (8 | ) | (7 | ) | (13 | ) | ||||||||
Reversal of restructuring charges
|
- | 2 | - | 2 | ||||||||||||
Flood-related maintenance costs
|
4 | - | - | - | ||||||||||||
Payment of restructuring costs
|
- | - | - | 4 | ||||||||||||
Timing of payments related to assumption of pension obligations
|
- | (2 | ) | - | 7 | |||||||||||
Other non-cash items
|
- | 2 | (3 | ) | (11 | ) | ||||||||||
FFO
|
154 | 184 | 392 | 377 |
3 months ended June 30, 2014
|
3 months ended June 30, 2013
|
|||||||||||||||||||||||
Reported
|
Comparable adjustments and reclassification(3)
|
Comparable
total
|
Reported
|
Comparable adjustments and reclassifications(3)
|
Comparable total
|
|||||||||||||||||||
Availability (%)(4)
|
82.1 | 3.3 | 85.4 | 70.8 | 9.7 | 80.5 | ||||||||||||||||||
Production (GWh)(4)
|
9,283 | - | 9,283 | 7,718 | - | 7,718 | ||||||||||||||||||
Gross installed capacity (MW)(1), (4)
|
9,092 | - | 9,092 | 8,388 | - | 8,388 | ||||||||||||||||||
Net installed capacity (MW)(1), (4)
|
8,381 | - | 8,381 | 8,007 | - | 8,007 | ||||||||||||||||||
Revenues
|
483 | 47 | 530 | 528 | 20 | 548 | ||||||||||||||||||
Fuel and purchased power
|
212 | (13 | ) | 199 | 187 | (15 | ) | 172 | ||||||||||||||||
Gross margin
|
271 | 60 | 331 | 341 | 35 | 376 | ||||||||||||||||||
Operations, maintenance, and administration
|
104 | 2 | 106 | 111 | (1 | ) | 110 | |||||||||||||||||
Inventory writedown (reversal)
|
(4 | ) | - | (4 | ) | 2 | - | 2 | ||||||||||||||||
Taxes, other than income taxes
|
7 | - | 7 | 8 | - | 8 | ||||||||||||||||||
Intersegment cost allocation
|
4 | - | 4 | 3 | - | 3 | ||||||||||||||||||
Insurance recovery
|
- | (1 | ) | (1 | ) | - | - | - | ||||||||||||||||
Gain on sale of assets
|
- | - | - | - | 1 | 1 | ||||||||||||||||||
Mine depreciation
|
- | - | - | - | - | - | ||||||||||||||||||
EBITDA
|
160 | 59 | 219 | 217 | 35 | 252 | ||||||||||||||||||
Depreciation and amortization
|
125 | 13 | 138 | 125 | 14 | 139 | ||||||||||||||||||
Restructuring provision
|
- | - | - | (1 | ) | 1 | - | |||||||||||||||||
Operating income
|
35 | 46 | 81 | 93 | 20 | 113 |
(1)
|
We measure capacity as net maximum capacity (see Glossary of Key Terms for definition of this and other key terms), which is consistent with industry standards. Capacity figures represent capacity owned and in operation unless otherwise stated. Gross capacity reflects the basis of consolidation of underlying assets, while net capacity deducts capacity attributable to non-controlling interests in these assets.
|
(2)
|
The Centralia gas plant is currently not in operation. We are currently assessing the generation needs of the region and the financial feasibility of bringing the plant back into operation.
|
(3)
|
Comparable figures are not defined under IFRS. Refer to the Earnings and Other Measures on a Comparable Basis section of this MD&A for further discussion of these items, including, where applicable, reconciliations to net earnings attributable to common shareholders.
|
6 months ended June 30, 2014
|
6 months ended June 30, 2013
|
|||||||||||||||||||||||
Reported
|
Comparable adjustments and reclassifications(3)
|
Comparable
total
|
Reported
|
Comparable adjustments and reclassifications(3)
|
Comparable total
|
|||||||||||||||||||
Availability (%)(4)
|
86.8 | 1.6 | 88.4 | 81.1 | 4.9 | 86.0 | ||||||||||||||||||
Production (GWh)(4)
|
21,036 | - | 21,036 | 17,968 | - | 17,968 | ||||||||||||||||||
Gross installed capacity (MW)(1), (4)
|
9,092 | - | 9,092 | 8,388 | - | 8,388 | ||||||||||||||||||
Net installed capacity (MW)(1), (4)
|
8,381 | - | 8,381 | 8,007 | - | 8,007 | ||||||||||||||||||
Revenues
|
1,193 | 53 | 1,246 | 1,051 | 73 | 1,124 | ||||||||||||||||||
Fuel and purchased power
|
547 | (28 | ) | 519 | 388 | (26 | ) | 362 | ||||||||||||||||
Gross margin
|
646 | 81 | 727 | 663 | 99 | 762 | ||||||||||||||||||
Operations, maintenance, and administration
|
216 | (2 | ) | 214 | 205 | (1 | ) | 204 | ||||||||||||||||
Inventory writedown
|
- | - | - | 16 | - | 16 | ||||||||||||||||||
Taxes, other than income taxes
|
14 | - | 14 | 15 | - | 15 | ||||||||||||||||||
Intersegment cost allocation
|
7 | - | 7 | 7 | - | 7 | ||||||||||||||||||
Insurance recovery
|
- | (1 | ) | (1 | ) | - | - | - | ||||||||||||||||
EBITDA
|
409 | 84 | 493 | 420 | 100 | 520 | ||||||||||||||||||
Depreciation and amortization
|
254 | 28 | 282 | 247 | 26 | 273 | ||||||||||||||||||
Decrease in finance lease receivable
|
- | 1 | 1 | - | 1 | 1 | ||||||||||||||||||
Restructuring provision
|
- | - | - | (1 | ) | 1 | - | |||||||||||||||||
Operating income
|
155 | 55 | 210 | 174 | 72 | 246 |
(4)
|
Availability, production, and installed capacity include assets under generation operations and finance leases.
|
(1)
|
We measure capacity as net maximum capacity (see Glossary of Key Terms for definition of this and other key terms), which is consistent with industry standards. Capacity figures represent capacity owned and in operation unless otherwise stated. Gross capacity reflects the basis of consolidation of underlying assets, while net capacity deducts capacity attributable to non-controlling interests in these assets.
|
(2)
|
The Centralia gas plant is currently not in operation. We are currently assessing the generation needs of the region and the financial feasibility of bringing the plant back into operation.
|
(3)
|
Comparable figures are not defined under IFRS. Refer to the Earnings and Other Measures on a Comparable Basis section of this MD&A for further discussion of these items, including, where applicable, reconciliations to net earnings attributable to common shareholders.
|
(4)
|
Availability, production, and installed capacity include assets under generation operations and finance leases.
|
3 months ended June 30
|
6 months ended June 30
|
|||||||||||||||
2014
|
2013
|
2014
|
2013
|
|||||||||||||
Availability (%)
|
86.9 | 74.5 | 87.0 | 79.9 | ||||||||||||
Production (GWh)
|
5,875 | 4,509 | 12,124 | 9,784 | ||||||||||||
Gross installed capacity (MW)
|
3,771 | 3,211 | 3,771 | 3,211 | ||||||||||||
Net installed capacity (MW)
|
3,576 | 3,016 | 3,576 | 3,016 | ||||||||||||
Revenues
|
236 | 188 | 490 | 416 | ||||||||||||
Fuel and purchased power
|
103 | 81 | 210 | 164 | ||||||||||||
Comparable gross margin(1)
|
133 | 107 | 280 | 252 | ||||||||||||
Operations, maintenance, and administration
|
46 | 54 | 95 | 98 | ||||||||||||
Taxes, other than income taxes
|
3 | 3 | 6 | 6 | ||||||||||||
Intersegment cost allocation
|
1 | 1 | 2 | 2 | ||||||||||||
Gain on sale of assets
|
- | 1 | - | - | ||||||||||||
Comparable EBITDA(1)
|
83 | 48 | 177 | 146 | ||||||||||||
Depreciation and amortization
|
68 | 71 | 144 | 140 | ||||||||||||
Comparable operating income (loss)(1)
|
15 | (23 | ) | 33 | 6 | |||||||||||
Sustaining capital expenditures:
|
||||||||||||||||
Routine capital
|
15 | 13 | 25 | 19 | ||||||||||||
Mining equipment and land purchases
|
3 | 12 | 8 | 20 | ||||||||||||
Finance leases
|
2 | 4 | 4 | 4 | ||||||||||||
Planned major maintenance(2)
|
36 | 36 | 64 | 59 | ||||||||||||
Total
|
56 | 65 | 101 | 102 |
(1)
|
Comparable figures are not defined under IFRS. Refer to the Earnings and Other Measures on a Comparable Basis section of this MD&A for further discussion of these items, including, where applicable, reconciliations to net earnings attributable to common shareholders.
|
(2)
|
For the three and six months ended June 30, 2014, consists of three and three planned outages, respectively. For the three and six months ended June 30, 2013, consists of one and two planned outages, respectively.
|
3 months ended June 30
|
6 months ended June 30
|
|||||||||||||||
2014
|
2013
|
2014
|
2013
|
|||||||||||||
Availability (%)
|
49.0 | 22.2 | 71.8 | 60.1 | ||||||||||||
Adjusted availability (%)(1)
|
68.9 | 76.7 | 81.9 | 87.8 | ||||||||||||
Production (GWh)
|
370 | 132 | 2,486 | 1,810 | ||||||||||||
Gross and net installed capacity (MW)
|
1,340 | 1,340 | 1,340 | 1,340 | ||||||||||||
Revenues
|
44 | 52 | 150 | 123 | ||||||||||||
Fuel and purchased power
|
21 | 18 | 92 | 49 | ||||||||||||
Comparable gross margin
|
23 | 34 | 58 | 74 | ||||||||||||
Operations, maintenance, and administration
|
10 | 9 | 23 | 20 | ||||||||||||
Inventory writedown (reversal)
|
(4 | ) | 2 | - | 16 | |||||||||||
Taxes, other than income taxes
|
1 | 1 | 1 | 2 | ||||||||||||
Intersegment cost allocation
|
2 | 1 | 3 | 3 | ||||||||||||
Comparable EBITDA
|
14 | 21 | 31 | 33 | ||||||||||||
Depreciation and amortization
|
13 | 14 | 27 | 27 | ||||||||||||
Comparable operating income
|
1 | 7 | 4 | 6 | ||||||||||||
Sustaining capital expenditures:
|
||||||||||||||||
Routine capital
|
1 | 2 | 1 | 4 | ||||||||||||
Planned major maintenance
|
8 | 6 | 9 | 7 | ||||||||||||
Total
|
9 | 8 | 10 | 11 |
(1)
|
Adjusted for economic dispatching.
|
3 months ended June 30
|
6 months ended June 30
|
|||||||||||||||
2014
|
2013
|
2014
|
2013
|
|||||||||||||
Availability (%)
|
89.0 | 90.2 | 92.5 | 93.9 | ||||||||||||
Production (GWh)(1)
|
1,839 | 1,826 | 3,847 | 3,959 | ||||||||||||
Gross installed capacity (MW)(1), (2)
|
1,779 | 1,779 | 1,779 | 1,779 | ||||||||||||
Net installed capacity (MW)(1), (2)
|
1,618 | 1,618 | 1,618 | 1,618 | ||||||||||||
Revenues
|
168 | 180 | 413 | 359 | ||||||||||||
Fuel and purchased power
|
70 | 67 | 206 | 138 | ||||||||||||
Comparable gross margin
|
98 | 113 | 207 | 221 | ||||||||||||
Operations, maintenance, and administration
|
28 | 27 | 53 | 49 | ||||||||||||
Taxes, other than income taxes
|
1 | 1 | 2 | 2 | ||||||||||||
Intersegment cost allocation
|
- | - | 1 | 1 | ||||||||||||
Comparable EBITDA
|
69 | 85 | 151 | 169 | ||||||||||||
Depreciation and amortization
|
28 | 27 | 55 | 54 | ||||||||||||
Decrease in finance lease receivable
|
- | - | 1 | 1 | ||||||||||||
Comparable operating income
|
41 | 58 | 95 | 114 | ||||||||||||
Sustaining capital expenditures:
|
||||||||||||||||
Routine capital
|
5 | 5 | 8 | 7 | ||||||||||||
Planned major maintenance
|
20 | 13 | 24 | 17 | ||||||||||||
Total
|
25 | 18 | 32 | 24 |
(1)
|
Includes production capacity for Fort Saskatchewan and Solomon power stations, which have been accounted for as finance leases.
|
(2)
|
The Centralia gas plant is currently not in operation. We are currently assessing the generation needs of the region and the financial feasibility of bringing the plant back into operation.
|
3 months ended June 30
|
6 months ended June 30
|
|||||||||||||||
2014
|
2013
|
2014
|
2013
|
|||||||||||||
Availability (%)
|
93.5 | 93.8 | 93.9 | 93.9 | ||||||||||||
Production (GWh)
|
649 | 617 | 1,661 | 1,405 | ||||||||||||
Gross installed capacity (MW)
|
1,289 | 1,145 | 1,289 | 1,145 | ||||||||||||
Net installed capacity (MW)
|
965 | 1,120 | 965 | 1,120 | ||||||||||||
Revenues
|
49 | 62 | 129 | 126 | ||||||||||||
Fuel and purchased power
|
3 | 3 | 7 | 7 | ||||||||||||
Comparable gross margin
|
46 | 59 | 122 | 119 | ||||||||||||
Operations, maintenance, and administration
|
11 | 10 | 23 | 19 | ||||||||||||
Intersegment cost allocation
|
1 | 1 | 1 | 1 | ||||||||||||
Taxes, other than income taxes
|
1 | 2 | 3 | 3 | ||||||||||||
Comparable EBITDA
|
33 | 46 | 95 | 96 | ||||||||||||
Depreciation and amortization
|
23 | 19 | 44 | 38 | ||||||||||||
Comparable operating income
|
10 | 27 | 51 | 58 | ||||||||||||
Sustaining capital expenditures:
|
||||||||||||||||
Routine capital
|
1 | 1 | 1 | 2 | ||||||||||||
Planned major maintenance
|
3 | 1 | 4 | 2 | ||||||||||||
Total
|
4 | 2 | 5 | 4 |
3 months ended June 30
|
6 months ended June 30
|
|||||||||||||||
2014
|
2013
|
2014
|
2013
|
|||||||||||||
Production (GWh)
|
550 | 634 | 918 | 1,010 | ||||||||||||
Gross installed capacity (MW)
|
913 | 913 | 913 | 913 | ||||||||||||
Net installed capacity (MW)
|
882 | 913 | 882 | 913 | ||||||||||||
Revenues
|
33 | 66 | 64 | 100 | ||||||||||||
Fuel and purchased power
|
2 | 3 | 4 | 4 | ||||||||||||
Comparable gross margin
|
31 | 63 | 60 | 96 | ||||||||||||
Operations, maintenance, and administration
|
11 | 10 | 20 | 18 | ||||||||||||
Taxes, other than income taxes
|
1 | 1 | 2 | 2 | ||||||||||||
Insurance recovery
|
(1 | ) | - | (1 | ) | - | ||||||||||
Comparable EBITDA
|
20 | 52 | 39 | 76 | ||||||||||||
Depreciation and amortization
|
6 | 8 | 12 | 14 | ||||||||||||
Comparable operating income
|
14 | 44 | 27 | 62 | ||||||||||||
Sustaining capital expenditures:
|
||||||||||||||||
Routine capital
|
8 | 2 | 11 | 3 | ||||||||||||
Total
|
8 | 2 | 11 | 3 |
2 months ended
|
3 months ended
|
6 months ended
|
||||||||||
Feb. 28, 2014
|
June 30, 2013
|
June 30, 2013
|
||||||||||
Availability (%)
|
97.1 | 91.9 | 89.4 | |||||||||
Production (GWh):
|
||||||||||||
Gas
|
127 | 68 | 208 | |||||||||
Renewables
|
187 | 324 | 578 | |||||||||
Total production
|
314 | 392 | 786 |
3 months ended June 30
|
6 months ended June 30
|
|||||||||||||||
2014
|
2013
|
2014
|
2013
|
|||||||||||||
Revenues and comparable gross margin
|
8 | 14 | 73 | 31 | ||||||||||||
Operations, maintenance, and administration
|
8 | 6 | 27 | 14 | ||||||||||||
Intersegment cost allocation
|
(4 | ) | (3 | ) | (7 | ) | (7 | ) | ||||||||
Comparable EBITDA and comparable operating income
|
4 | 11 | 53 | 24 |
3 months ended June 30
|
6 months ended June 30
|
|||||||||||||||
2014
|
2013
|
2014
|
2013
|
|||||||||||||
Operations, maintenance, and administration and comparable EBITDA
|
10 | 16 | 23 | 29 | ||||||||||||
Depreciation and amortization
|
7 | 6 | 13 | 11 | ||||||||||||
Comparable operating loss
|
(17 | ) | (22 | ) | (36 | ) | (40 | ) | ||||||||
Sustaining capital expenditures:
|
||||||||||||||||
Routine capital
|
5 | 6 | 12 | 8 | ||||||||||||
Total
|
5 | 6 | 12 | 8 |
3 months ended June 30
|
6 months ended June 30
|
|||||||||||||||
2014
|
2013
|
2014
|
2013
|
|||||||||||||
Interest on debt
|
58 | 58 | 119 | 118 | ||||||||||||
Capitalized interest
|
- | - | - | (2 | ) | |||||||||||
Interest expense
|
58 | 58 | 119 | 116 | ||||||||||||
Accretion of provisions
|
4 | 5 | 9 | 9 | ||||||||||||
Net interest expense
|
62 | 63 | 128 | 125 |
3 months ended June 30
|
6 months ended June 30
|
|||||||||||||||
2014
|
2013
|
2014
|
2013
|
|||||||||||||
Earnings (loss) before income taxes
|
(32 | ) | 44 | 59 | 35 | |||||||||||
Income attributable to non-controlling interests
|
(11 | ) | (9 | ) | (26 | ) | (19 | ) | ||||||||
Equity loss
|
- | 3 | - | 7 | ||||||||||||
Impacts associated with certain de-designated and ineffective hedges
|
35 | 8 | 28 | 49 | ||||||||||||
Restructuring provision
|
- | (2 | ) | - | (2 | ) | ||||||||||
Gain on sale of assets
|
(1 | ) | (10 | ) | (1 | ) | (10 | ) | ||||||||
Loss on assumption of pension obligations
|
- | - | - | 29 | ||||||||||||
Insurance recovery
|
(1 | ) | - | (1 | ) | - | ||||||||||
California claim
|
5 | - | 5 | - | ||||||||||||
Flood-related maintenance costs, net of insurance recovery
|
(2 | ) | 1 | 2 | 1 | |||||||||||
Earnings (loss) attributable to TransAlta shareholders, excluding non-comparable items, subject to tax
|
(7 | ) | 35 | 66 | 90 | |||||||||||
Income tax expense (recovery)
|
(3 | ) | 10 | 15 | (7 | ) | ||||||||||
Income tax (expense) recovery related to impacts associated with certain de-designated and ineffective hedges
|
12 | 3 | 10 | 17 | ||||||||||||
Income tax (expense) recovery related to gain on sale of assets
|
1 | (1 | ) | 1 | (1 | ) | ||||||||||
Income tax recovery related to sale of investment
|
36 | - | 36 | - | ||||||||||||
Income tax (expense) related to write off of deferred income tax assets
|
(51 | ) | - | (51 | ) | - | ||||||||||
Income tax recovery related to deferred tax rate adjustment
|
- | 1 | - | 7 | ||||||||||||
Income tax recovery related to loss on assumption of pension obligations
|
- | - | - | 7 | ||||||||||||
Income tax (expense) related to insurance recovery
|
- | - | - | - | ||||||||||||
Income tax recovery related to California claim
|
1 | - | 1 | - | ||||||||||||
Income tax recovery related to flood-maintenance costs, net of insurance recovery
|
(1 | ) | - | - | - | |||||||||||
Income tax expense (recovery) excluding non-comparable items
|
(5 | ) | 13 | 12 | 23 | |||||||||||
Effective tax rate on earnings attributable to TransAlta shareholders excluding non-comparable items (%)
|
71 | 37 | 18 | 26 |
3 months ended June 30, 2014
|
3 months ended June 30, 2013
|
|||||||||||||||||||||||||||||||||||
Reported
|
Comparable reclassifications
|
Comparable adjustments
|
Comparable total
|
Reported
|
Comparable reclassifications
|
Comparable adjustments
|
Comparable total
|
|||||||||||||||||||||||||||||
Revenues
|
491 | 12 | (1) | 35 | (4) | 538 | 542 | 12 | (1) | 8 | (4) | 562 | ||||||||||||||||||||||||
Fuel and purchased power
|
212 | (13 | ) | (2) | - | 199 | 187 | (15 | ) | (2) | - | 172 | ||||||||||||||||||||||||
Gross margin
|
279 | 25 | 35 | 339 | 355 | 27 | 8 | 390 | ||||||||||||||||||||||||||||
Operations, maintenance, and administration
|
122 | - | 2 | (5) | 124 | 133 | - | (1 | ) | (5) | 132 | |||||||||||||||||||||||||
Inventory writedown (reversal)
|
(4 | ) | - | - | (4 | ) | 2 | - | - | 2 | ||||||||||||||||||||||||||
Taxes, other than income taxes
|
7 | - | - | 7 | 8 | - | - | 8 | ||||||||||||||||||||||||||||
Insurance recovery
|
- | (1 | ) | (3) | - | (1 | ) | - | - | - | - | |||||||||||||||||||||||||
Gain on sale of assets
|
- | - | - | - | - | 1 | (9) | - | 1 | |||||||||||||||||||||||||||
EBITDA
|
154 | 26 | 33 | 213 | 212 | 26 | 9 | 247 | ||||||||||||||||||||||||||||
Depreciation and amortization
|
132 | 13 | (2) | - | 145 | 131 | 14 | (2)(9) | - | 145 | ||||||||||||||||||||||||||
Restructuring provision
|
- | - | - | - | (2 | ) | - | 2 | - | |||||||||||||||||||||||||||
Operating income
|
22 | 13 | 33 | 68 | 83 | 12 | 7 | 102 | ||||||||||||||||||||||||||||
Finance lease income
|
12 | (12 | ) | (1) | - | - | 12 | (12 | ) | (1) | - | - | ||||||||||||||||||||||||
Foreign exchange gain (loss)
|
(2 | ) | - | - | (2 | ) | 5 | - | - | 5 | ||||||||||||||||||||||||||
Gain on sale of assets
|
1 | - | (1 | ) | (6) | - | 10 | - | (10 | ) | (7) | - | ||||||||||||||||||||||||
California claim
|
(5 | ) | - | 5 | (7) | - | - | - | - | - | ||||||||||||||||||||||||||
Insurance recovery
|
2 | (1 | ) | (3) | (1 | ) | (7) | - | - | - | - | - | ||||||||||||||||||||||||
Equity loss
|
- | - | - | - | (3 | ) | - | - | (3 | ) | ||||||||||||||||||||||||||
Earnings before interest and taxes
|
30 | - | 36 | 66 | 107 | - | (3 | ) | 104 | |||||||||||||||||||||||||||
Net interest expense
|
62 | - | - | 62 | 63 | - | - | 63 | ||||||||||||||||||||||||||||
Income tax expense (recovery)
|
(3 | ) | - | (2 | ) | (8) | (5 | ) | 10 | - | 3 | (10) | 13 | |||||||||||||||||||||||
Net earnings (loss)
|
(29 | ) | - | 38 | 9 | 34 | - | (6 | ) | 28 | ||||||||||||||||||||||||||
Non-controlling interests
|
11 | - | - | 11 | 9 | - | - | 9 | ||||||||||||||||||||||||||||
Net earnings (loss) attributable to
TransAlta shareholders
|
(40 | ) | - | 38 | (2 | ) | 25 | - | (6 | ) | 19 | |||||||||||||||||||||||||
Preferred share dividends
|
10 | - | - | 10 | 10 | - | - | 10 | ||||||||||||||||||||||||||||
Net earnings (loss) attributable to
common shareholders
|
(50 | ) | - | 38 | (12 | ) | 15 | - | (6 | ) | 9 | |||||||||||||||||||||||||
Weighted average number of common shares outstanding in the period
|
272 | 272 | 262 | 262 | ||||||||||||||||||||||||||||||||
Net earnings (loss) per share attributable to common shareholders
|
(0.18 | ) | (0.04 | ) | 0.06 | 0.03 |
(1) Finance lease income used as a proxy for operating income.
|
(8) Gain on sale of property, plant, and equipment that is included in depreciation and amortization
|
|
(2) Mine depreciation that is included in fuel and purchased power.
|
(9) Flood-related maintenance costs.
|
|
(3) Comparable insurance proceeds
|
(10) Net tax effect of all non-comparable items.
|
|
(4) Impacts associated with certain de-designated and ineffective hedges.
|
||
(5) Flood-related maintenance costs of $4 m, offset by insurance proceeds of $6m.
|
||
(6) Non-comparable item.
|
||
(6) Reclassification into operating income.
|
||
(7) Valuation allowance on deferred income tax assets and net tax effect of all non-comparable items.
|
6 months ended June 30, 2014
|
6 months ended June 30, 2013
|
|||||||||||||||||||||||||||||||||||
Reported
|
Comparable reclassifications
|
Comparable adjustments
|
Comparable total
|
Reported
|
Comparable reclassifications
|
Comparable adjustments
|
Comparable total
|
|||||||||||||||||||||||||||||
Revenues
|
1,266 | 25 | (1) | 28 | (4) | 1,319 | 1,082 | 24 | (1) | 49 | (4) | 1,155 | ||||||||||||||||||||||||
Fuel and purchased power
|
547 | (28 | ) | (2) | - | 519 | 388 | (26 | ) | (2) | - | 362 | ||||||||||||||||||||||||
Gross margin
|
719 | 53 | 28 | 800 | 694 | 50 | 49 | 793 | ||||||||||||||||||||||||||||
Operations, maintenance, and administration
|
266 | - | (2 | ) | (5) | 264 | 248 | - | (1 | ) | (5) | 247 | ||||||||||||||||||||||||
Inventory writedown (reversal)
|
- | - | - | - | 16 | - | - | 16 | ||||||||||||||||||||||||||||
Taxes, other than income taxes
|
14 | - | - | 14 | 15 | - | - | 15 | ||||||||||||||||||||||||||||
Insurance recovery
|
- | (1 | ) | (3) | - | (1 | ) | - | - | - | - | |||||||||||||||||||||||||
EBITDA
|
439 | 54 | 30 | 523 | 415 | 50 | 50 | 515 | ||||||||||||||||||||||||||||
Depreciation and amortization
|
267 | 28 | (2) | - | 295 | 258 | 26 | (2) | - | 284 | ||||||||||||||||||||||||||
Restructuring provision
|
- | - | - | - | (2 | ) | - | 2 | (7) | - | ||||||||||||||||||||||||||
Decrease in finance lease receivable
|
- | 1 | (1) | - | 1 | - | 1 | (1) | - | 1 | ||||||||||||||||||||||||||
Operating income
|
172 | 25 | 30 | 227 | 159 | 23 | 48 | 230 | ||||||||||||||||||||||||||||
Finance lease income
|
24 | (24 | ) | (1) | - | - | 23 | (23 | ) | (1) | - | - | ||||||||||||||||||||||||
Foreign exchange gain (loss)
|
(7 | ) | - | - | (7 | ) | 4 | - | - | 4 | ||||||||||||||||||||||||||
Gain on sale of assets
|
1 | - | (1 | ) | (6) | - | 10 | - | (10 | ) | (7) | - | ||||||||||||||||||||||||
California claim
|
(5 | ) | - | 5 | (7) | - | - | - | - | - | ||||||||||||||||||||||||||
Insurance recovery
|
2 | (1 | ) | (3) | (1 | ) | (7) | - | - | - | - | - | ||||||||||||||||||||||||
Equity loss
|
- | - | - | - | (7 | ) | - | - | (7 | ) | ||||||||||||||||||||||||||
Loss on assumption of pension obligations
|
- | - | - | - | (29 | ) | - | 29 | (7) | - | ||||||||||||||||||||||||||
Earnings before interest and taxes
|
187 | - | 33 | 220 | 160 | - | 67 | 227 | ||||||||||||||||||||||||||||
Net interest expense
|
128 | - | - | 128 | 125 | - | - | 125 | ||||||||||||||||||||||||||||
Income tax expense (recovery)
|
15 | (3 | ) | (8) | 12 | (7 | ) | - | 30 | (9) | 23 | |||||||||||||||||||||||||
Net earnings (loss)
|
44 | - | 36 | 80 | 42 | - | 37 | 79 | ||||||||||||||||||||||||||||
Non-controlling interests
|
26 | - | - | 26 | 19 | - | - | 19 | ||||||||||||||||||||||||||||
Net earnings (loss) attributable to
TransAlta shareholders
|
18 | - | 36 | 54 | 23 | - | 37 | 60 | ||||||||||||||||||||||||||||
Preferred share dividends
|
19 | - | - | 19 | 19 | - | - | 19 | ||||||||||||||||||||||||||||
Net earnings (loss) attributable to
common shareholders
|
(1 | ) | - | 36 | 35 | 4 | - | 37 | 41 | |||||||||||||||||||||||||||
Weighted average number of common shares outstanding in the period
|
271 | 271 | 260 | 260 | ||||||||||||||||||||||||||||||||
Net earnings (loss) per share attributable to common shareholders
|
- | 0.13 | 0.02 | 0.16 |
(1) Finance lease income used as a proxy for operating income. |
(5) Flood-related maintenance costs, net of insurance recoveries.
|
(9) Gain on sale of property, plant and equipment that is included in depreciation. | ||
(2) Mine depreciation that is included in fuel and purchased power. |
(6) Gain on sale of CE Gen.
|
(10) Net tax effects of all non-comparable items.
|
||
(3) Comparable portion of insurance recovery. | (7) Non-comparable item. | |||
(4) Impacts associated with certain de-designated and ineffective hedges. | (8) Valuation allowance on deferred income tax effect of all non-comparable items. |
Increase/
|
||||
(Decrease)
|
Primary factors explaining change
|
|||
Cash and cash equivalents
|
52
|
Timing of receipts and payments
|
||
Accounts receivable
|
(145)
|
Timing of customer receipts and seasonality of revenues
|
||
Prepaid expenses
|
37
|
Prepayment of annual insurance premiums, royalties, and service agreements
|
||
Inventory
|
41
|
Increase in coal inventory due to economic dispatching at Centralia Thermal and lower writedowns
|
||
Investments
|
(192)
|
Sale of CE Gen
|
||
Property, plant, and equipment, net
|
(59)
|
Depreciation for the period, partially offset by additions and favourable changes in foreign exchange rates
|
||
Deferred income tax assets
|
(21)
|
Net deferred income tax expense
|
||
Risk management assets (current and long-term)(1)
|
(44)
|
Price movements and changes in underlying positions and settlements
|
||
Accounts payable and accrued liabilities
|
(56)
|
Timing of payments and lower capital accruals
|
||
Collateral received
|
Reduction in collateral received from counterparties associated with changes in forward prices
|
|||
Dividends payable
|
(30)
|
Reduction of quarterly dividend
|
||
Liabilities held for sale
|
||||
Long-term debt (including current portion)
|
(306)
|
Reduction of borrowings under credit facility and payout on maturity of medium term notes, partially offset by the issuance of senior notes
|
||
Decommissioning and other provisions (current and long-term)
|
15
|
Fluctuations in period end discount rates
|
||
Defined benefit obligation and other long-term liabilities
|
(13)
|
Payment related to California claim, partially offset by increase in defined benefit accrual
|
||
Deferred income tax liabilities
|
(23)
|
Net deferred income tax recovery
|
||
Risk management liabilities (current and long-term)(1)
|
20
|
Price movements and changes in underlying positions and settlements
|
||
Equity attributable to shareholders
|
(34)
|
Net earnings for the period and gain on sale of subsidiary shares, partially offset by declared dividends
|
||
Non-controlling interests
|
99
|
Sale of additional non-controlling interest in TransAlta Renewables, partially offset by non-controlling interests' portion of net earnings net of distributions
|
(1)
|
After giving effect to the $160 million reduction in risk management assets and liabilities as at Dec. 31, 2013, as described in the Current Accounting Changes section of this MD&A.
|
3 months ended June 30
|
2014
|
2013
|
Primary factors explaining change
|
|||
Cash and cash equivalents, beginning of period
|
37
|
50
|
||||
Provided by (used in):
|
||||||
Operating activities
|
51
|
92
|
Decrease in cash earnings of $66 million, partially offset by an increase in the change in working capital of $25 million
|
|||
Investing activities
|
126
|
(160)
|
Increase in proceeds on sale of investments of $218 million, a decrease in additions to PP&E of $48 million, and a decrease in investing non-cash working capital balances of $28 million, partially offset by a decrease in realized gains on financial instruments of $11 million
|
|||
Financing activities
|
(120)
|
86
|
An increase in repayments of borrowings under credit facilities and in repayments (net of issuances) of long-term debt of $345 million, partially offset by an increase in net proceeds on sale of additional non-controlling interest in a subsidiary of $129 million and a decrease in common share cash dividends of $12 million
|
|||
Translation of foreign currency cash
|
-
|
(1)
|
||||
Cash and cash equivalents, end of period
|
94
|
67
|
6 months ended June 30
|
2014
|
2013
|
Primary factors explaining change
|
|||
Cash and cash equivalents, beginning of period
|
42
|
27
|
||||
Provided by (used in):
|
||||||
Operating activities
|
330
|
348
|
Decrease in cash earnings of $8 million and a decrease in the change in working capital of $10 million
|
|||
Investing activities
|
21
|
(310)
|
Increase in proceeds on sale of investments of $218 million, a decrease in additions to PP&E of $102 million, and a decrease in investing non-cash working capital balances of $38 million, partially offset by a decrease in realized gains on financial instruments of $25 million
|
|||
Financing activities
|
(300)
|
2
|
An increase in repayments of borrowings under credit facilities and in repayments (net of issuances) of long-term debt of $428 million, an increase in common share cash dividends of $18 million, and a decrease in distributions paid to subsidiaries' non-controlling interests of $9 million, partially offset by an increase in net proceeds on sale of additional non-controlling interest in a subsidiary of $129 million and an increase in realized gains on financial instruments of $23 million
|
|||
Translation of foreign currency cash
|
1
|
-
|
||||
Cash and cash equivalents, end of period
|
94
|
67
|
Total Project
|
2014
|
Target
|
|||||||||||||||||||
|
Estimated
spend
|
Spent to
date(1)
|
Estimated
spend
|
Spent to
date(1)
|
completion
date
|
Details
|
|||||||||||||||
Project
|
|||||||||||||||||||||
Australia natural gas pipeline(2)
|
86 | 10 | 86 | 10 | Q1 2015 |
270 kilometer pipeline to supply natural gas to our Solomon power station in Western Australia
|
|||||||||||||||
Transmission
|
10 | - | 10 | - | Q4 2014 |
Regulated transmission that receives a return on investment
|
|||||||||||||||
Hydro life extension
|
15 - 20 | 4 | 15 - 20 | 4 | Q4 2014 |
Generator replacement and turbine runner improvements to extend the life of selected plants
|
|||||||||||||||
Total
|
111 - 116 | 14 | 111 - 116 | 14 |
Category
|
Description
|
Expected
cost
|
Spent to
date(1)
|
|||||||
Routine capital
|
Expenditures to maintain our existing generating capacity
|
110 - 115 | 58 | |||||||
Mining equipment and land purchases
|
Expenditures related to mining equipment and land purchases
|
45 - 50 | 8 | |||||||
Finance leases
|
Payments related to mining equipment under finance leases
|
5 - 10 | 4 | |||||||
Planned major maintenance
|
Regularly scheduled major maintenance
|
175 - 190 | 101 | |||||||
Total sustaining expenditures
|
335 - 365 | 171 | ||||||||
Productivity capital
|
Projects to improve power production efficiency and corporate improvement initiatives
|
10 - 15 | 5 | |||||||
Total sustaining and productivity expenditures
|
345 - 380 | 176 |
(1)
|
Represents amounts spent as of June 30, 2014.
|
(2)
|
Includes certain natural gas conversion costs at the Solomon power station that will be recognized as a finance lease receivable.
|
Coal
|
Gas and
Renewables
|
Expected
spend
in 2014
|
Spent
to date(1)
|
|||||||||||||
Capitalized
|
120 - 130 | 55 - 60 | 175 - 190 | 101 | ||||||||||||
Expensed
|
- | 0 - 5 | 0 - 5 | - | ||||||||||||
120 - 130 | 55 - 65 | 175 - 195 | 101 | |||||||||||||
Coal
|
Gas and
Renewables
|
Total
|
Lost
to date(1)
|
|||||||||||||
GWh lost
|
2,050 - 2,060 | 400 - 410 | 2,450 - 2,470 | 2,053 |
Q3 2013 | Q4 2013 | Q1 2014 | Q2 2014 | |||||||||||||
Revenue
|
623 | 587 | 775 | 491 | ||||||||||||
Net earnings (loss) attributable to common shareholders
|
(9 | ) | (66 | ) | 49 | (50 | ) | |||||||||
Net earnings (loss) per share attributable to common shareholders, basic and diluted
|
(0.03 | ) | (0.25 | ) | 0.18 | (0.18 | ) | |||||||||
Comparable net earnings per share
|
0.15 | 0.00 | 0.17 | (0.04 | ) | |||||||||||
Q3 2012 | Q4 2012 | Q1 2013 | Q2 2013 | |||||||||||||
Revenue
|
522 | 646 | 540 | 542 | ||||||||||||
Net earnings (loss) attributable to common shareholders
|
56 | 39 | (11 | ) | 15 | |||||||||||
Net earnings (loss) per share attributable to common shareholders, basic and diluted
|
0.24 | 0.15 | (0.04 | ) | 0.06 | |||||||||||
Comparable net earnings (loss) per share
|
0.18 | 0.22 | 0.12 | 0.03 |
June 30, 2014
|
Dec. 31, 2013
|
|||||||||
Closing market price (TSX) ($)
|
13.08 | 13.48 | ||||||||
Price range for the last 12 months (TSX) ($)
|
High
|
15.08 | 16.86 | |||||||
Low
|
12.60 | 12.91 | ||||||||
Debt to invested capital (%)
|
52.9 | 55.6 | ||||||||
Debt to invested capital excluding non-recourse debt(1) (%)
|
50.4 | 53.3 | ||||||||
Debt to invested capital including finance lease obligation and non-recourse debt (%)
|
53.1 | 55.7 | ||||||||
Debt to comparable EBITDA(2) (times)
|
3.8 | 4.2 | ||||||||
Return on equity attributable to common shareholders(2) (%)
|
(3.4 | ) | (3.1 | ) | ||||||
Comparable return on equity attributable to common shareholders(1), (2) (%)
|
3.3 | 3.6 | ||||||||
Return on capital employed(2) (%)
|
3.1 | 2.8 | ||||||||
Comparable return on capital employed(1), (2) (%)
|
5.0 | 5.2 | ||||||||
Cash dividends per share(2) ($)
|
1.05 | 1.16 | ||||||||
Price to comparable earnings ratio(1), (2) (times)
|
46.7 | 43.5 | ||||||||
Earnings coverage(2) (times)
|
1.0 | 0.9 | ||||||||
Dividend payout ratio based on net earnings(2) (%)
|
(331.6 | ) | (431.0 | ) | ||||||
Dividend payout ratio based on comparable earnings(1), (2) (%)
|
336.0 | 377.8 | ||||||||
Dividend payout ratio based on funds from operations(1), (2), (3) (%)
|
33.9 | 42.0 | ||||||||
Dividend yield(2) (%)
|
8.0 | 8.6 | ||||||||
Adjusted cash flow to debt(2), (3) (%)
|
17.7 | 16.9 | ||||||||
Adjusted cash flow to interest coverage(2), (3) (times)
|
4.1 | 4.0 |
(1)
|
These ratios incorporate items that are not defined under IFRS. None of these measurements should be used in isolation or as a substitute for the Corporation’s reported financial performance or position as presented in accordance with IFRS. These ratios are useful complementary measurements for assessing the Corporation’s financial performance, efficiency, and liquidity and are common in the reports of other companies but may differ by definition and application. For a reconciliation of the Non-IFRS measures used in this calculation, refer to the Non-IFRS Measures section of this MD&A.
|
(2)
|
Last 12 months.
|
(3)
|
The December 2013 ratios have been adjusted for the impact of the California claim.
|
TransAlta Reports Second Quarter 2014 Results
CALGARY, Alberta (July 30, 2014) – TransAlta Corporation (“TransAlta”) (TSX: TA; NYSE: TAC) today reported second quarter 2014 Comparable EBITDA(1) of $213 million with strong availability across our entire Generation Segment and improved operational performance at Canadian Coal. Second quarter results are consistent with our expectations to meet our full year EBITDA guidance of $1,015 million to $1,065 million. Comparable EBITDA decreased $34 million compared to the same period last year, primarily due to lower power prices in Alberta which impacted our hydro, wind and gas assets in the province. Power prices in Alberta averaged $42/MWh during the second quarter of 2014 compared to $123/MWh in the same period last year. Our strategy of being highly contracted generally limited the impacts of lower price volatility and lower prices in Alberta in the quarter. FFO(1) decreased $30 million to $154 million compared to the prior year for the same reason. The company also declared its regular quarterly dividend of $0.18 per share.
“Our second quarter financial performance is exactly in line with our business plan for 2014,” said Dawn Farrell, President and Chief Executive Officer. “One of our key priorities for 2014 is to restore the performance of our Canadian coal assets and we are seeing improved results year-to-date. Our guidance for the year recognizes much softer pricing in Alberta and remains unchanged.”
Recent Strategic Accomplishments
· | Agreed to build and operate an AUD $570 million, 150MW combined cycle gas power station in South Hedland, Western Australia. The fully contracted power station is expected to be commissioned and delivering power to customers in the first half of 2017. |
· | Continued development with our joint venture partner on a $178 million natural gas pipeline to our Solomon power station. We hold a 43 per cent interest in the joint venture. The project is on schedule and within budget. |
· | Completed the sale of our 50 per cent ownership of CE Generation LLC (“CE Gen”), the Blackrock Development Project (“Blackrock”), and CalEnergy, LLC (“CalEnergy”) for net proceeds of U.S.$188.5 million in the quarter. |
· | Completed a secondary offering of TransAlta Renewables Inc. (“TransAlta Renewables”) shares for proceeds of approximately $129 million, net of offering costs. |
· | Successfully completed an offering of U.S.$400 million of senior notes, due in June 2017. |
· | At June 30, 2014, our liquidity was ~$1.5 billion, $587 million higher than at the end of 2013. |
· | Q2 debt balance of ~$4.0 billion, down from ~$4.3 billion at the beginning of the year. |
1 |
Second Quarter Review
Comparable EBITDA(1) (in CAD$ millions) |
3 months ended June 30, 2014 | 3 months ended June 30, 2013 | 6 months ended June 30, 2014 | 6 months ended June 30, 2013 |
Generation | ||||
Canadian Coal | 83 | 48 | 177 | 146 |
U.S. Coal | 14 | 21 | 31 | 33 |
Gas | 69 | 85 | 151 | 169 |
Wind | 33 | 46 | 95 | 96 |
Hydro | 20 | 52 | 39 | 76 |
Total Generation | 219 | 252 | 493 | 520 |
Energy Trading | 4 | 11 | 53 | 24 |
Corporate | (10) | (16) | (23) | (29) |
Total Comparable EBITDA(1) | 213 | 247 | 523 | 515 |
FFO(1) | 154 | 184 | 392 | 377 |
Comparable Net Earnings (loss) attributable to common shareholders(1) | (12) | 9 | 35 | 41 |
Comparable EBITDA was $213 million down from $247 million for the same period last year due to lower prices in Alberta partially offset by improved performance at Canadian Coal.
FFO also came in lower for the quarter at $154 million, down from $184 million for the same period last year. The decrease in FFO is primarily due to lower comparable EBITDA.
The company reported a comparable net loss for the quarter of $12 million ($(0.04)) per share), down from comparable earnings of $9 million ($0.03 per share) in the same period last year. The per share loss was driven by lower comparable EBITDA net of taxes.
Adjusted availability(2) for the quarter was 85.4%, which is higher than the availability over the same period last year and brings year-to-date adjusted availability to 88.4%, in line with our full year availability target range of 88-90%. Total sustaining capital expenditures are $171 million year-to-date and we are on track to be within our 2014 target range of $335 - $365 million. We have completed all of the planned coal outages that were scheduled for 2014 on units we are operating.
Generation
· | Canadian Coal: Comparable EBITDA increased to $83 million in the second quarter and $177 million year-to-date compared to $48 million and $146 million, respectively, for the same periods in 2013. The improvement period over period is due to higher availability. In 2013, our results were impacted by the settlement and buy back of existing financial contracts at higher prices due to lower than expected generation during unplanned outages. Canadian Coal was not significantly impacted by the much lower average second quarter and year-to-date prices in Alberta due the PPAs and long-term hedges in place for most of our capacity. |
2 |
· | Gas: Comparable EBITDA was $69 million in the second quarter and $151 million year-to-date compared to $85 million and $169 million, respectively, for the same periods in 2013. The decrease in comparable EBITDA is primarily due to lower Alberta prices impacting results from the Poplar Creek facility and the effects of the new contract at Ottawa. |
· | Hydro: Comparable EBITDA was $20 million in the second quarter and $39 million in year-to-date compared to $52 million and $76 million, respectively, for the same periods in 2013. Lower prices and low price volatility in Alberta limited our ability to take advantage of resource flexibility to produce electricity during higher priced hours. Additionally, lower water resources than in 2013 impacted our second quarter and year-to-date results. |
Energy Trading
Corporate
Recent Events
South Hedland
On July 28 2014, we announced that we agreed to build, own, and operate a 150 MW combined cycle gas power station in South Hedland, Western Australia. The project is estimated to cost approximately AUD$570 million to build, including the cost of acquiring existing balance of plant assets, related infrastructure and transmission access. The development has been fully contracted under 25-year PPAs with Horizon Power; a state owned utility company, and The Pilbara Infrastructure Pty Ltd., a wholly owned subsidiary of Fortescue, a mining company. The project may be expanded to accommodate additional customers at later dates.
3 |
The power station will supply Horizon Power’s customers in the Pilbara region as well as Fortescue’s port operations. IHI Engineering Australia has been selected as the contractor to construct the power station. Applications for the relevant work and environmental permits have been submitted and are now in progress. Construction is expected to take place over the next three years and the power station is expected to be commissioned and delivering power to customers in the first half of 2017.
Sale of CE Generation, Blackrock and CalEnergy
On June 12, 2014, we completed the previously announced sale of our 50 per cent ownership of CE Gen, Blackrock, and CalEnergy to MidAmerican Renewables for proceeds of U.S. $200.5 million. The net proceeds received were U.S. $188.5, million after consideration of an equity contribution made by us to CE Gen in May. As a result of the sale, we recognized a pre-tax gain of $1 million in second quarter earnings.
We expect the sale of our 50 per cent interest in the Wailuku Holding Company, LLC, announced in February, 2014, to close in December, 2014.
Reached Agreement with Province on Ghost Reservoir
On June 4, 2014, we announced our agreement with the Alberta Government regarding modifying the operations of the Ghost Reservoir to provide part of a flood mitigation solution. The revised operating pattern of Ghost Reservoir involves holding the reservoir near its minimum low water level (1,189.3 meters) until July 31, approximately six weeks longer than the current operating pattern.
Senior Notes Offering
On June 3, 2014, we completed an offering of U.S.$400 million of senior notes, due in June 2017, that carry a coupon rate of 1.90 per cent, payable semi-annually, at an issue price equal to 99.887 per cent of the principal amount of the notes. The net proceeds from the offering were used to repay borrowings under existing credit facilities and for general corporate purposes.
The following table depicts key financial results and statistical operating data:
Second Quarter 2014 Highlights
In CAD$ millions, unless otherwise stated | 3 months ended June 30, 2014 | 3 months ended June 30, 2013 | 6 months ended June 30, 2014 | 6 months ended June 30, 2013 |
Adjusted Availability (%)(2)(3) | 85.4 | 81.8 | 88.4 | 86.6 |
Production (GWh) | 9,283 | 8,110 | 21,350 | 18,754 |
Revenue | 491 | 542 | 1,266 | 1,082 |
Comparable EBITDA(1) | 213 | 247 | 523 | 515 |
Reported Net Earnings (loss) attributable to common shareholders | (50) | 15 | (1) | 4 |
Comparable Net Earnings (loss) attributable to common shareholders(1) | (12) | 9 | 35 | 41 |
Funds from Operations(1) | 154 | 184 | 392 | 377 |
Cash Flow from Operating Activities | 51 | 92 | 330 | 348 |
Free Cash Flow(1) | 19 | 57 | 158 | 171 |
Basic and Diluted Earnings (loss) per common share | (0.18) | 0.06 | - | 0.02 |
Comparable Net Earnings per share(1) | (0.04) | 0.03 | 0.13 | 0.16 |
Funds from Operations per share(1) | 0.57 | 0.70 | 1.45 | 1.45 |
Free Cash Flow per share(1) | 0.07 | 0.22 | 0.58 | 0.66 |
Dividends paid per common share | 0.18 | 0.29 | 0.47 | 0.58 |
(1)Comparable EBITDA refers to Earnings before interest, taxes, depreciation and amortization including finance lease income and adjusted for certain other items. FFO refers to Funds from Operations. Free Cash Flow refers to Funds from Operations less sustaining capital less preferred dividends less non-controlling interest payments. Comparable EBITDA, comparable net earnings attributable to common shareholders, FFO, free cash flow, comparable earnings per share, funds from operations per share, and free cash flow per share are not defined under International Financial Reporting Standards (“IFRS”). Presenting these measures from period to period provides supplemental information to help management and shareholders evaluate earnings and cash flow trends in comparison with prior periods' results. Refer to the Non-IFRS Measures section of our Management's Discussion and Analysis ("MD&A") for further discussion of these items
(2)Adjusted for economic dispatching at Centralia
(3)Availability includes all generating assets (generation operations, finance leases, and equity investments).
4 |
The complete report for the quarter, including MD&A and unaudited interim financial statements, as well as our quarterly presentation, is available on the Investors section of our website: www.transalta.com.
Conference call
We will hold a conference call and web cast at 8:00 a.m. MT (10:00 a.m. ET) today to discuss our second quarter 2014 results. The call will begin with a short address by Dawn Farrell, President and CEO, and Donald Tremblay, Chief Financial Officer, followed by a question and answer period for investment analysts, investors and other interested parties. A question and answer period for the media will immediately follow. Please contact the conference operator five minutes prior to the call, noting "TransAlta Corporation" as the company and "Brent Ward" as moderator.
Dial-in numbers:
Toll-free North American participants call: 1-800-319-4610
Outside of Canada & USA call: 1-604-638-5340
A link to the live webcast will be available on the Investor Centre section of TransAlta’s website at http://www.transalta.com/investor-centre/events-presentations/webcasts-conference-calls. If you are unable to participate in the call, the instant replay will be accessible at 1-800-319-6413 (Canada and USA toll free) or 1-604-638-9010 (Outside of Canada) with TransAlta pass code 2231 followed by the # sign. A transcript of the broadcast will be posted on TransAlta’s website once it becomes available.
Note: If using a hands-free phone, lift the handset and press one to ask a question.
TransAlta is a power generation and wholesale marketing company focused on creating long-term shareholder value. TransAlta maintains a low-to-moderate risk profile by operating a highly contracted portfolio of assets in Canada, the United States and Australia. TransAlta’s focus is to efficiently operate wind, hydro, natural gas and coal facilities in order to provide customers with a reliable, low-cost source of power. For over 100 years, TransAlta has been a responsible operator and a proud contributor to the communities in which it works and lives. TransAlta has been selected by Sustainalytics as one of Canada’s Top 50 Socially Responsible Companies since 2009 and is recognized globally for its leadership on sustainability and corporate responsibility standards by FTSE4Good.
This news release contains forward looking statements including, without limitation, statements regarding the business and anticipated financial performance of TransAlta, the development of the South Hedland power station, the ongoing construction of a natural gas pipeline to our Solomon power station in Australia and the proposed sale of our interest in Wailuku Holding Company, LLC. These statements are based on TransAlta’s belief and assumptions based on information available at the time the assumptions were made. These statements are subject to a number of risks and uncertainties that may cause actual results to differ materially from those contemplated by the forward-looking statements. Some of the factors that could cause such differences include: operational risks involving our facilities, changes in market prices where we operate, unplanned outages at generating facilities and the capital investments required, equipment failure and our ability to carry out repairs in a cost effective manner or timely manner, the effects of weather, disruptions in the source of fuels, water, or wind required to operate our facilities, energy trading risks, failure to obtain necessary regulatory approvals in a timely fashion, legislative or regulatory developments, competition, global capital markets activity, changes in prevailing interest rates, currency exchange rates, inflation levels and commodity prices, general economic conditions in the geographic areas where TransAlta operates and any impediments to the successful completion of the sale of Wailuku Holding Company, LLC, the construction of our natural gas pipeline to our Solomon power station and the construction of the South Hedland power project. Readers are cautioned not to place undue reliance on these forward-looking statements, which reflect TransAlta’s expectations only as of the date of this news release. TransAlta disclaims any intention or obligation to update or revise these forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.
5 |
Note: All financial figures are in Canadian dollars unless noted otherwise.
-30-
For more information:
Investor inquiries: | North American Media inquiries: |
Brent Ward | Stacey Hatcher |
Director, Corporate Finance and Investor Relations | Manager, Communications |
Phone: 1-800-387-3598 in Canada and U.S. | Cell: 587-216-2242 |
Email: investor_relations@transalta.com | Toll-free media number: 1-855-255-9184 |
Alternate local number: 403-267-2540 | |
ta_media_relations@transalta.com | |
6 |
_L?[!]EU72TV[?M,_F;_M&C7=IKQ\-S67BN*TM7OY`[>&XHK*XU:\CM!)G[+; MOIL TGT5'NQ!LF$,48E ?^"R'QB_X2\>'!(?A5X8_LO\`L 7)Y?WNNQNG2OS@_P"5+G_J MY/\`X:3_`.Y._P"$=_L/_P`#_M/G_P!L?],O+^S_`,?F?(`'_*ES_P!7)_\` M#2?_`')W_"._V'_X'_:?/_MC_IEY?V?^/S/D/^5+G_JY/_AI/_N3O^$=_L/_ M`,#_`+3Y_P#;'_3+R_L_\?F?(?\`*ES_`-7)_P##2?\`W)W_``CO]A_^!_VG MS_[8_P"F7E_9_P"/S/D/^5+G_JY/_AI/_N3O^$=_L/\`\#_M/G_VQ_TR\O[/ M_'YGR`!_RI<_]7)_\-)_]R=_PCO]A_\`@?\`:?/_`+8_Z9>7]G_C\SY/HS_@ MB_\`\$5?^',7_!2[4-'_`.%E_P#"R?\`A8/PRU*\\[_A'O['^P?9=5TM-NW[ M3/YF_P"T9SE<;.ASQ\Y_\J7/_5R?_#2?_ _L?[! M]EU72TV[?M,_F;_/SG*XV=#G@`_7*BBB@`HHHH`****`"BBB@`HHHH`****` M"BBB@`HHHH`****`"BBB@`HHHH`****`"BBB@`HHHH`****`"BBB@`HHHH`* M***`/`/!7_*4WXE_]DJ\)?\`IW\35[_7@'@K_E*;\2_^R5>$O_3OXFKW^@`H MHHH`\0_X)E?\HW/V?/\`LFOAS_TUVU%'_!,K_E&Y^SY_V37PY_Z:[:B@#/\` M^"3O_*++]FG_`+)5X7_]-%K7O]>`?\$G?^467[-/_9*O"_\`Z:+6O?Z`"BBB M@`HHHH`^9/!7_*9;XE_]D7\)?^GSQ-7TW7S)X*_Y3+?$O_LB_A+_`-/GB:OI MN@`HHHH`***X#]J/3_B/J_P)UVT^$MUX?LO'MU]GBL+C6;IK6VMXFN(A=.DH MMKH1W"VIG,#R6MQ$LXA,D,L8>-@#OZ*_&'3?@/:_#S]H#XS^"/B+^SGX@\)Z MAXE\5VFK:-\0_"_AWQ?\2T\%0?\`"/Z/%>:EHE^NC`KX@NKJ/S1JB;9VO(KB M>^:5M-LH=1_9Z@#X@_X+[_M6_P###?[&WA?XM_V#_P`)1_P@?Q`T74_[*^V_ M8OMVUI5V>=Y Z[&Z=*_.#_E2Y_ZN3_X:3_[D[_A'?[#_`/`_[3Y_]L?] M,O+^S_Q^9\GZ/_\`!??]JW_AAO\`8V\+_%O^P?\`A*/^$#^(&BZG_97VW[%] MNVM*NSSO+D\O[W78W3I7YP?\J7/_`% /G/_`)4N?^KD_P#A MI/\`[D[_`(1W^P__``/^T^?_`&Q_TR\O[/\`Q^9\GT9_P1?_`."*O_#F+_@I M=J&C_P#"R_\`A9/_``L'X9:E>>;_`,(]_8_V#[+JNEIMV_:9_,W^?G.5QLZ' M/`!^N5%%%`!1110`4444`%%%%`!1110`4444`%%%%`!1110`4444`%%%%`!1 M110`4444`%%%%`!1110`4444`%%%%`!1110`4444`>`>"O\`E*;\2_\`LE7A M+_T[^)J]_KP#P5_RE-^)?_9*O"7_`*=_$U>_T`%%%%`'B'_!,K_E&Y^SY_V3 M7PY_Z:[:BC_@F5_RC<_9\_[)KX<_]-=M10!G_P#!)W_E%E^S3_V2KPO_`.FB MUKW^O`/^"3O_`"BR_9I_[)5X7_\`31:U[_0`4444`>8?%[]M#X8?`/XF:+X0 M\8^,-/T#6] "TO+QYKVZ"&WL8VMM.U"2-[J2(3"PN_++F" M4)H?`O\`:=\(_M%?VK%X=F\06VH:)Y37VE^(?#>I>'-5MXIMXAN#9:C!!<_9 MY6BG2.<1^5(]O.BNS0R*OQ_^VM_P12\1_M)6-[IGAOX^_$#1=)\7^*_$7B'Q M!!JMCH=]'9?VMX=UG22UNPTQ;RZ\I;^VLTBN;W]WIT9BBEB>"U>+Z0_9Q^$W MC]?C[XZ^*/Q&T[P?X;UOQ9X?T/PM!H7AO7+G7K2"WTNYU:Z6[:\GL[)_,F?6 M)(S`+?$8M5?S7,Q2(`Y/P5_RF6^)?_9%_"7_`*?/$U?3=?(7P&\%:GX)_P"" MR7QD74_%_B+Q@VI_"OPQJ%LVKPV$1TF&37/$FVQ@^R6T`:"/!VM,)9SO.^5^ M,?7M`!6?XL\5Z;X$\*ZGKFLWMOIND:-:2WU]=SOLBM8(D+R2.3T554DGL!6A M7C__``4*Y_8%^.(]?A_KW_INN*`.=B_X*G?`:>))$\>*Z.`RLNC:@0P/0@^1 MR*=_P](^!/\`T/7_`)1=0_\`C%9'P.\-?\(_X`\#S?V9<:!_PC6GZ/H7GZ-H M?VB7P?YT?AP_V#HP_L_XI[0_^)*GVKP_<>5_I M5[\GV?RFY@^S_P#$M/"/A'_A$_[$_P"))_PBW_"*_P!G^'_^*?T3[3_PA/F_ M\(]_Q3VA_P#$E3[5X?N/*_TJ]^3[/Y3 :SX+\>:1K$>@E+O2CJ*QF7<@N);9E0X).=K'@\&OCK_E2Y_Z MN3_X:3_[D[_A'?[#_P#`_P"T^?\`VQ_TR\O[/_'YGR?3_P#P6P^.?_#O[]GO MX,?%C_A6GA_4_P#A2_Q`TJW_`+#@D_LNV\*9T6U/]@Z#=?V1#]IT>3R_->YY MVSVJ1>6=GD6/S!_RI<_]7)_\-)_]R=_PCO\`8?\`X'_:?/\`[8_Z9>7]G_C\ MSY``_P"5+G_JY/\`X:3_`.Y._P"$=_L/_P`#_M/G_P!L?],O+^S_`,?F?(?\ MJ7/_`%
7]G_`(_,^0`/^5+G_JY/_AI/_N3O^$=_L/\`\#_M M/G_VQ_TR\O[/_'YGR?1G_!%__@BK_P`.8O\`@I=J&C_\++_X63_PL'X9:E>> M=_PCW]C_`[+JNEIMV_:9_,W_:,YRN-G0YX^<_^5+G_`*N3_P"&D_\`N3O^ M$=_L/_P/^T^?_;'_`$R\O[/_`!^9\GT9_P`$7_\`@BK_`,.8O^"EVH:/_P`+ M+_X63_PL'X9:E>>;_P`(]_8_V#[+JNEIMV_:9_,W^?G.5QLZ'/`!^N5%%%`! M1110`4444`%%%%`!1110`4444`%%%%`!1110`4444`%%%%`!1110`4444`%% M%%`!1110`4444`%%%%`!1110`4444`>`>"O^4IOQ+_[)5X2_]._B:O?Z\`\% M?\I3?B7_`-DJ\)?^G?Q-7O\`0`4444`>(?\`!,K_`)1N?L^?]DU\.?\`IKMJ M*/\`@F5_RC<_9\_[)KX<_P#37;44`9__``2=_P"467[-/_9*O"__`*:+6O?Z M\`_X)._\HLOV:?\`LE7A?_TT6M>_T`%%%%`!1110!\R>"O\`E,M\2_\`LB_A M+_T^>)J^FZ^9/!7_`"F6^)?_`&1?PE_Z?/$U?3=`!7C_`/P4*_Y,$^./_9/] M>_\`3=<5[!7C_P#P4*_Y,$^./_9/]>_]-UQ0!Q'P.\-?\(_X`\#S?V9<:!_P MC6GZ/H7GZ-H?VB7P?YT?AP_V#HP_L'[CR MO]*O?D^S^4W,'V?_`(EN/\#O#7_"/^`/`\W]F7&@?\(UI^CZ%Y^C:']HE\'^ M='X]@Z,/[''VK0;KRLW=[N7[.8W^:'[/G3MCPCX1_X1/\`L3_B2?\`"+?\ M(K_9_A__`(I_1/M/_"$^;_PCW_%/:'_Q)4^U>'[CRO\`2KWY/L_E-S!]G_XE MH`>$?"/_``B?]B?\23_A%O\`A%?[/\/_`/%/Z)]I_P"$)\W_`(1[_BGM#_XD MJ?:O#]QY7^E7OR?9_*;F#[/_`,2T\(^$?^$3_L3_`(DG_"+?\(K_`&?X?_XI M_1/M/_"$^;_PCW_%/:'_`,25/M7A^X\K_2KWY/L_E-S!]G_XEIX1\(_\(G_8 MG_$D_P"$6_X17^S_``__`,4_HGVG_A"?-_X1[_BGM#_XDJ?:O#]QY7^E7OR? M9_*;F#[/_P`2T\(^$?\`A$_[$_XDG_"+?\(K_9_A_P#XI_1/M/\`PA/F_P#" M/?\`%/:'_P`25/M7A^X\K_2KWY/L_E-S!]G_`.):`?#_`/P6P^.?_#O[]GOX M,?%C_A6GA_4_^%+_`!`TJW_L."3^R[;PIG1;4_V#H-U_9$/VG1Y/+\U[GG;/ M:I%Y9V>18_,'_*ES_P!7)_\`#2?_`')W_"._V'_X'_:?/_MC_IEY?V?^/S/D M^G_^"V'QS_X=_?L]_!CXL?\`"M/#^I_\*7^(&E6_]AP2?V7;>%,Z+:G^P=!N MO[(A^TZ/)Y?FO<\[9[5(O+.SR+'Y@_Y4N?\`JY/_`(:3_P"Y._X1W^P__`_[ M3Y_]L?\`3+R_L_\`'YGR`!_RI<_]7)_\-)_]R=_PCO\`8?\`X'_:?/\`[8_Z M9>7]G_C\SY#_`)4N?^KD_P#AI/\`[D[_`(1W^P__``/^T^?_`&Q_TR\O[/\` MQ^9\A_RI<_\`5R?_``TG_P!R=_PCO]A_^!_VGS_[8_Z9>7]G_C\SY#_E2Y_Z MN3_X:3_[D[_A'?[#_P#`_P"T^?\`VQ_TR\O[/_'YGR`!_P`J7/\`U 7]G_`(_,^3Z,_P""+_\`P15_X _L?[!]EU72TV[?M,_F;_/SG*XV=#GCY MS_Y4N?\`JY/_`(:3_P"Y._X1W^P__`_[3Y_]L?\`3+R_L_\`'YGR?1G_``1? M_P""*O\`PYB_X*7:AH__``LO_A9/_"P?AEJ5YYO_``CW]C_8/LNJZ6FW;]IG M\S?Y^&-"\7^. M/!_A76_&UW]@\.Z?K&LVUC=Z_<;XD\FTBE=7N)-\T*[(PQS+&,989/AQ^T+X M!^,?BKQ/H7A'QQX/\5:WX)N_L'B+3]'UFVOKO0+C?*GDW<43L]O)OAF79(%. M8I!C*G'@'_!0+1?%?C/Q4_@S1?@-XP\<^!_B%X?.F?$7Q+X7NO#EMJ>KZ6CS MK%X=1M1U&SF2.475XTMR-Q@AN94MMMQ=&ZLC]C+1?%?BKX^OKOC3X#>,/A!: M>#?#]YX5\`V3W7APZ!X;T$W-GFTC73-1GFDO+L65E,X:!+:UCLHK:$ADFN;\ M`^KZ**^9OVV?^"Q7[./_``3I^(FE^$_C)\1U\'^(-:TX:M9VG]A:GJ)EM3+) M$)-UI;RJH+Q2##$'Y3QCF@#Z9K\H?V]?A-X=^/\`\;/%>E>`_A[\8/`&NZ/X MKL_^$H\8Z9\+M M9M4N]/GM+_P_;Z4;U8-,N&N4U"XL[.WM MK7[-:VD&I?3_`,=/^"[O[,_[+_\`97_"S/%'Q`^'?]N>;_9O_"3_``J\6:1_ M:'E;/-\G[1IJ>9L\V/=MSM\Q,XW#)\=/^"[O[,_[+_\`97_"S/%'Q`^'?]N> M;_9O_"3_``J\6:1_:'E;/-\G[1IJ>9L\V/=MSM\Q,XW#(!T'_!*;X9_\*D^" M?B[1=+TOQ!I_@*'Q7))X,EUOP[_PB]_J&G-I]B9YI-&6VLX=-QJ7]HQ"*&PL MDE6%;DQ2R7,EW<_3]?('QT_X+N_LS_LO_P!E?\+,\4?$#X=_VYYO]F_\)/\` M"KQ9I']H>5L\WR?M&FIYFSS8]VW.WS$SC<,GQT_X+N_LS_LO_P!E?\+,\4?$ M#X=_VYYO]F_\)/\`"KQ9I']H>5L\WR?M&FIYFSS8]VW.WS$SC<,@'U_17%?` M7]H/PO\`M+^!9/$?A*YU6?3H+ZXTR=-3T6]T:\M;FWD, 10W$3JX((> M-?49'-=K0`4444`%%%%`!1165K/CK1/#EX+?4=9TJPN"H?RKB[CB?:>APQ!Q MP>?:@#5KX0_;0^)GQ_\`!WBKQA:?!GXG:?XH\5W-VGAW4;/7X](T'P7\.7U= MTL]%,%U);37<^N12W>FWCVDT]U'<0"Y_T:V?4-(@?[/_`.%L^%O^AF\/_P#@ MQA_^*KR"?]D_]EFY\=ZOXIE^&GP`D\3^(/MW]J:NWA[2#?ZE]NCEBO?/G,?F M2_:(YYDEWD^:LT@;<&8$`/\`@GOXQ\7ZMX.\>>&OB%XB\0>)/'OP_P#%9T37 M9]1O=-O[:WEETO3M1ABLKFQTO2Q/;_9;^W8M-91RK.]PF9(TB=O?Z\_^%I^% MGP.\"6'A;P5_PK_P?X9TOS/L>D:)]CT^PM/,D:63RX(=L:;I'=SM`RSL3R2: MZ#_A;/A;_H9O#_\`X,8?_BJ`.@K/\66VJWGA74X="O=/T[6Y;25-/N[^R>]M M+6X*$122P)+"\T:OM+1K+&6`(#H3N%NPOX-4LXKFVGBN;>9=T H(X( M^E5/%GA/2_'OA74]"UW3-/UK1-:M);#4-/O[=+FTO[>5"DL,L3@I)&Z,RLC` MA@2""#0!^>'B+QI^U+\4?'?ASPG\$OBI_P`)1\/]>^T^);'QYXOUSP[X?\2> M([.QC%K=Q:;#!X?NX)]'EN-2TJ:WO_[,+,;*\S,UM?Z9/)]P?LG?%*S^./[+ M'PT\;:=?^(-4T_QAX5TO6[6\UV&U@U6[BN;.*9);N.U5;9+AE<-(L"K$'+!` M%P*X^V_X)E?LW6?A6]T*+]GSX(1:)J5W!?W>GIX%TM;2ZN($F2":2(0;'DC2 MYN%1R"5$\H!`=L^WT`%%%%`!1110!X!X*_Y2F_$O_LE7A+_T[^)J]_KP#P5_ MRE-^)?\`V2KPE_Z=_$U>_P!`!1110!XA_P`$RO\`E&Y^SY_V37PY_P"FNVHH M_P""97_*-S]GS_LFOAS_`--=M10!G_\`!)W_`)19?LT_]DJ\+_\`IHM:]_KP M#_@D[_RBR_9I_P"R5>%__31:U[_0`4444`?,'[0/_!0G7OV4O$>M:CX]^&GV M;P%9Z5XAUBPET?Q#'J?BJ>ST6QFO+K4+G2Q"EM;:?(L"Q1W`OY&$VI:5%-%; MR7;I;^@?L]?M"^*O'?Q3\7?#_P"('A+P_P"$_&_A/2M+\0R1^'O$4VOZ5<:= MJ4VH6]LPN9[.RE%P)M+O!)$;?8J&!EE 6XN'F]`^`?[,2?!3Q5XA\2ZKXT\8?$;QEXFM++3+WQ!XD73H;O[!9/=26E MFL6G6EI:B.*6^O9`_D^ 1?"CQAI/B_\`X+*?%AM)U33M4&G? M"'PK8W9M+E)Q:W":YXEWPOM)VR+D94X(R,BOJROE/X4>$-)\(?\`!93XL+I. MEZ=I8U'X0^%;Z[%I;)`+JX?7/$N^9]H&Z1L#+').!DU]64`%>0?\%"CC]@7X MXGT^'^O?^FZXKU^O(/\`@H3S^P+\<1Z_#_7O_3=<4`\#O#7_"/^`/`\W]F M7&@?\(UI^CZ%Y^C:']HE\'^='X]@Z,/[''VK0;KRLW=[N7[.8W^:'[/G3M MCPCX1_X1/^Q/^))_PBW_``BO]G^'_P#BG]$^T_\`"$^;_P`(]_Q3VA_\25/M M7A^X\K_2KWY/L_E-S!]G_P");C_`[PU_PC_@#P/-_9EQH'_"-:?H^A>?HVA_ M:)?!_G1^'#_8.C#^QQ]JT&Z\K-W>[E^SF-_FA^SYT[8\(^$?^$3_`+$_XDG_ M``BW_"*_V?X?_P"*?T3[3_PA/F_\(]_Q3VA_\25/M7A^X\K_`$J]^3[/Y3 _XI M[0_^)*GVKP_<>5_I5[\GV?RFY@^S_P#$M/"/A'_A$_[$_P"))_PBW_"*_P!G M^'_^*?T3[3_PA/F_\(]_Q3VA_P#$E3[5X?N/*_TJ]^3[/Y3
$?"/ M_")_V)_Q)/\`A%O^$5_L_P`/_P#%/Z)]I_X0GS?^$>_XI[0_^)*GVKP_<>5_ MI5[\GV?RFY@^S_\`$M/"/A'_`(1/^Q/^))_PBW_"*_V?X?\`^*?T3[3_`,(3 MYO\`PCW_`!3VA_\`$E3[5X?N/*_TJ]^3[/Y3
3R_- M>YYVSVJ1>6=GD6/S!_RI<_\`5R?_``TG_P!R=_PCO]A_^!_VGS_[8_Z9>7]G M_C\SY/I__@MA\<_^'?W[/?P8^+'_``K3P_J?_"E_B!I5O_8<$G]EVWA3.BVI M_L'0;K^R(?M.CR>7YKW/.V>U2+RSL\BQ^8/^5+G_`*N3_P"&D_\`N3O^$=_L M/_P/^T^?_;'_`$R\O[/_`!^9\@`?\J7/_5R?_#2?_
%]'TGP]#%).UP]O/<&60R.JQP)';NSRD[8U!=RD:NZ\%>?MY_$ MRP_M+S/V6?C`W]E:K::--Y=[I,F^>Y^S>6\6VZ/G6Z_:XO,N8MT$.V?S9(_L M\_EG_!0.\^P_M`?LG2?VEX@TK=\56C\[1M-_M"Y?=X?UA?)>/R)]MO+GRIY= M@\F"2:7S8/+\^/H/"/A'_A$_[$_XDG_"+?\`"*_V?X?_`.*?T3[3_P`(3YO_ M``CW_%/:'_Q)4^U>'[CRO]*O?D^S^4W,'V?_`(EH!S]Y^WG\3+#^TO,_99^, M#?V5JMIHTWEWNDR;Y[G[-Y;Q;;H^=;K]KB\RYBW00[9_-DC^SS^67G[>?Q,L M/[2\S]EGXP-_96JVFC3>7>Z3)OGN?LWEO%MNCYUNOVN+S+F+=!#MG\V2/[// MY?0>$?"/_")_V)_Q)/\`A%O^$5_L_P`/_P#%/Z)]I_X0GS?^$>_XI[0_^)*G MVKP_<>5_I5[\GV?RFY@^S_\`$M/"/A'_`(1/^Q/^))_PBW_"*_V?X?\`^*?T M3[3_`,(3YO\`PCW_`!3VA_\`$E3[5X?N/*_TJ]^3[/Y3 M?Q,L/[2\S]EGXP-_96JVFC3>7>Z3)OGN?LWEO%MNCYUNOVN+S+F+=!#MG\V2 M/[//Y?YQ?\%#O^#B;6O^"8G_``4Q\1WGB#]G'Q3)JWB3P!H.CRZ;K7B2#2_* M6TO=6NEN;>>""[ANX9!J/E[HWPDEO*A)=75/T]\(^$?^$3_L3_B2?\(M_P`( MK_9_A_\`XI_1/M/_``A/F_\`"/?\4]H?_$E3[5X?N/*_TJ]^3[/Y3
$=(_X1JRU7^P-!\#? MV?)J9^P:1/\`V1']OT\?:\I-Y?RR>='E/+^S6P!P7_*ES_U
7]G_C\SY#_E2Y_P"KD_\`AI/_`+D[_A'?[#_\ M#_M/G_VQ_P!,O+^S_P`?F?(`?I5_P06_9F_X8R_8@U3X4_VW_P`))_P@'CG7 MM%_M3[']C^W^5=E?-\G?)Y>?[N]L>IK[4KXK_P"""W[,W_#&7[$&J?"G^V_^ M$D_X0#QSKVB_VI]C^Q_;_*NROF^3OD\O/]W>V/4U]J4`%%%%`!1110`5\+^( M?V=_!7QE_P""A?QIOO&7@+POXAL[*7PE;?VU-X<@U[6;*21K01V,5O+870%C M<@SK=W&^(VT2>8"GS7-M]T5\@>%-(\K_`(*._&G6_L7V/['_`,(OI_\`PD6F M6/V_7K+[0^G_`/$OBA^Q7&-/O/)Q>S[XO(CMXY W^T_@E\.M'\C4=-M]6_LGX?V5]_PCM\_]B;=(TK=H*_; M]&G\RX^TZB^UK?=/\\'EM_9WHWA'PC_PB?\`8G_$D_X1;_A%?[/\/_\`%/Z) M]I_X0GS?^$>_XI[0_P#B2I]J\/W'E?Z5>_)]G\IN8/L__$M/"/A'_A$_[$_X MDG_"+?\`"*_V?X?_`.*?T3[3_P`(3YO_``CW_%/:'_Q)4^U>'[CRO]*O?D^S M^4W,'V?_`(EH!YSIW["'PDCV_P!I_!+X=:/Y&HZ;;ZM_9/P_LK[_`(1V^?\` ML3;I&E;M!7[?HT_F7'VG47VM;[I_G@\MO[.-._80^$D>W^T_@E\.M'\C4=-M M]6_LGX?V5]_PCM\_]B;=(TK=H*_;]&G\RX^TZB^UK?=/\\'EM_9WHWA'PC_P MB?\`8G_$D_X1;_A%?[/\/_\`%/Z)]I_X0GS?^$>_XI[0_P#B2I]J\/W'E?Z5 M>_)]G\IN8/L__$M/"/A'_A$_[$_XDG_"+?\`"*_V?X?_`.*?T3[3_P`(3YO_ M``CW_%/:'_Q)4^U>'[CRO]*O?D^S^4W,'V?_`(EH!^"T/Q.\._\`!&/X*^&_ MB/\`$7P$?CII_P"T;K7B(:)X.MO%-YX TEC21;N*Y-Y&0?L M]KY8M5^1M_R^E?M7?#/3O^#9[^P/^%MW/B#]L_\`X77]H_LK^T]=OO"'_"'_ M`-E^5YVS;-??:/M7]HQ9SY7E_8Q]_?\`)A_LW?M??\0UOPO;XL?\(3IOQ+_X M:_UK6#_PC&G:G_8%GX"_X1O5+JU\B&X^SS_;8IO[1^4^1:^6MN!L;?\`)WG_ M`"I<_P#5R?\`PTG_`-R=_P`([_8?_@?]I\_^V/\`IEY?V?\`C\SY`#G_`-J[ MX9Z=_P`&SW]@?\+;N?$'[9__``NO[1_97]IZ[?>$/^$/_LORO.V;9K[[1]J_ MM&+.?*\O[&/O[_D/VKOAGIW_``;/?V!_PMNY\0?MG_\`"Z_M']E?VGKM]X0_ MX0_^R_*\[9MFOOM'VK^T8LY\KR_L8^_O^3H/^5+G_JY/_AI/_N3O^$=_L/\` M\#_M/G_VQ_TR\O[/_'YGR'_*ES_U DP>'O$]U>WF@ M2_#O^R=4L'NC'!]INA>"]COUC8%X1&+?/[S?A?Z!*_GUO_V+O^( '8/[8_L_\`X1[_`(1#_A'=9L[G/D>;=?;/M']I;<>9!Y7D MY_>;\+_050`4444`>`>"O^4IOQ+_`.R5>$O_`$[^)J]_KP#P5_RE-^)?_9*O M"7_IW\35[_0`4444`>(?\$RO^4;G[/G_`&37PY_Z:[:BC_@F5_RC<_9\_P"R M:^'/_37;44`9_P#P2=_Y19?LT_\`9*O"_P#Z:+6O?Z\`_P""3O\`RBR_9I_[ M)5X7_P#31:U[_0`4444`%%%%`'S)X*_Y3+?$O_LB_A+_`-/GB:OINOF3P5_R MF6^)?_9%_"7_`*?/$U?3=`!7D'_!0G_DP7XX_P#9/]>_]-UQ7K]>0?\`!0G_ M`),%^./_`&3_`%[_`--UQ0!P_P`#O#7_``C_`(`\#S?V9<:!_P`(UI^CZ%Y^ MC:']HE\'^='X\`8.C#^QQ]JT&Z\K-W>[E^SF-_FA^SYT[8\(^$?^$3_L3_ M`(DG_"+?\(K_`&?X?_XI_1/M/_"$^;_PCW_%/:'_`,25/M7A^X\K_2KWY/L_ ME-S!]G_XEN/\#O#7_"/^`/`\W]F7&@?\(UI^CZ%Y^C:']HE\'^='X]@Z,/ M[''VK0;KRLW=[N7[.8W^:'[/G3MCPCX1_P"$3_L3_B2?\(M_PBO]G^'_`/BG M]$^T_P#"$^;_`,(]_P`4]H?_`!)4^U>'[CRO]*O?D^S^4W,'V?\`XEH`>$?" M/_")_P!B?\23_A%O^$5_L_P__P`4_HGVG_A"?-_X1[_BGM#_`.)*GVKP_<>5 M_I5[\GV?RFY@^S_\2T\(^$?^$3_L3_B2?\(M_P`(K_9_A_\`XI_1/M/_``A/ MF_\`"/?\4]H?_$E3[5X?N/*_TJ]^3[/Y3 5_I5[\GV?RFY M@^S_`/$M/"/A'_A$_P"Q/^))_P`(M_PBO]G^'_\`BG]$^T_\(3YO_"/?\4]H M?_$E3[5X?N/*_P!*O?D^S^4W,'V?_B6@'P__`,%L/CG_`,._OV>_@Q\6/^%: M>']3_P"%+_$#2K?^PX)/[+MO"F=%M3_8.@W7]D0_:='D\OS7N>=L]JD7EG9Y M%C\P?\J7/_5R?_#2?_
M7]G_`(_,^0_Y4N?^KD_^&D_^Y._X1W^P_P#P/^T^?_;'_3+R_L_\?F?(?\J7 M/_5R?_#2?_ 7]G_C\SY/HS_@B_P#\$5?^',7_``4NU#1_^%E_\+)_ MX6#\,M2O/._X1[^Q_L'V75=+3;M^TS^9O^T9SE<;.ASQ\Y_\J7/_`% _L?[!]EU72TV[?M,_F;_M& _XI[0_P#B2I]J\/W'E?Z5>_)]G\IN8/L__$M/"/A' M_A$_[$_XDG_"+?\`"*_V?X?_`.*?T3[3_P`(3YO_``CW_%/:'_Q)4^U>'[CR MO]*O?D^S^4W,'V?_`(EIX1\(_P#")_V)_P`23_A%O^$5_L_P_P#\4_HGVG_A M"?-_X1[_`(I[0_\`B2I]J\/W'E?Z5>_)]G\IN8/L_P#Q+3PCX1_X1/\`L3_B M2?\`"+?\(K_9_A__`(I_1/M/_"$^;_PCW_%/:'_Q)4^U>'[CRO\`2KWY/L_E M-S!]G_XEH`>$?"/_``B?]B?\23_A%O\`A%?[/\/_`/%/Z)]I_P"$)\W_`(1[ M_BGM#_XDJ?:O#]QY7^E7OR?9_*;F#[/_`,2W\O?^"@G_``6C_P"'&_\`P4FU M"Q_X5)_PEG_"4_"CPCI'_"-66J_V!H/@;^SY-3/V#2)_[(C^WZ>/M>4F\OY9 M/.CRGE_9K;]0O"/A'_A$_P"Q/^))_P`(M_PBO]G^'_\`BG]$^T_\(3YO_"/? M\4]H?_$E3[5X?N/*_P!*O?D^S^4W,'V?_B6_E[_P4$_X+1_\.-_^"DVH6/\` MPJ3_`(2S_A*?A1X1TC_A&K+5?[`T'P-_9\FIG[!I$_\`9$?V_3Q]KRDWE_+) MYT>4\O[-;`'!?\J7/_5R?_#2?_ 7]G_C\SY#_E2Y_ZN3_X:3_[D[_A'?[#_P#`_P"T^?\` MVQ_TR\O[/_'YGR'_`"I<_P#5R?\`PTG_`-R=_P`([_8?_@?]I\_^V/\`IEY? MV?\`C\SY#_E2Y_ZN3_X:3_[D[_A'?[#_`/`_[3Y_]L?],O+^S_Q^9\@!^E7_ M``06_9F_X8R_8@U3X4_VW_PDG_"`>.=>T7^U/L?V/[?Y5V5\WR=\GEY_N[VQ MZFOM2OBO_@@M^S-_PQE^Q!JGPI_MO_A)/^$`\ V/4U]J4`%%%%`!1110`5\@>%-(\K_@H[\:=;^Q?8_L?_"+Z?_PD M6F6/V_7K+[0^G_\`$OBA^Q7&-/O/)Q>S[XO(CMXY LOM#Z?\`\2^*'[%<8T^\\G%[/OB\ MB.WCERNW[3:@'H'A'PC_`,(G_8G_`!)/^$6_X17^S_#_`/Q3^B?:?^$)\W_A M'O\`BGM#_P")*GVKP_<>5_I5[\GV?RFY@^S_`/$M/"/A'_A$_P"Q/^))_P`( MM_PBO]G^'_\`BG]$^T_\(3YO_"/?\4]H?_$E3[5X?N/*_P!*O?D^S^4W,'V? M_B6GA'PC_P`(G_8G_$D_X1;_`(17^S_#_P#Q3^B?:?\`A"?-_P"$>_XI[0_^ M)*GVKP_<>5_I5[\GV?RFY@^S_P#$M/"/A'_A$_[$_P"))_PBW_"*_P!G^'_^ M*?T3[3_PA/F_\(]_Q3VA_P#$E3[5X?N/*_TJ]^3[/Y3 T/_B2I]J\/W'E?Z5> M_)]G\IN8/L__`!+3PCX1_P"$3_L3_B2?\(M_PBO]G^'_`/BG]$^T_P#"$^;_ M`,(]_P`4]H?_`!)4^U>'[CRO]*O?D^S^4W,'V?\`XEIX1\(_\(G_`&)_Q)/^ M$6_X17^S_#__`!3^B?:?^$)\W_A'O^*>T/\`XDJ?:O#]QY7^E7OR?9_*;F#[ M/_Q+3PCX1_X1/^Q/^))_PBW_``BO]G^'_P#BG]$^T_\`"$^;_P`(]_Q3VA_\ M25/M7A^X\K_2KWY/L_E-S!]G_P"):`?B)^S=^U]_Q#6_"]OBQ_PA.F_$O_AK M_6M8/_",:=J?]@6?@+_A&]4NK7R(;C[//]MBF_M'Y3Y%KY:VX&QM_P`G>?\` M*ES_`-7)_P##2?\`W)W_``CO]A_^!_VGS_[8_P"F7E_9_P"/S/DX/]F[]K[_ M`(AK?A>WQ8_X0G3?B7_PU_K6L'_A&-.U/^P+/P%_PC>J75KY$-Q]GG^VQ3?V MC\I\BU\M;<#8V_Y.\_Y4N?\`JY/_`(:3_P"Y._X1W^P__`_[3Y_]L?\`3+R_ ML_\`'YGR`!_RI<_]7)_\-)_]R=_PCO\`8?\`X'_:?/\`[8_Z9>7]G_C\SY#_ M`)4N?^KD_P#AI/\`[D[_`(1W^P__``/^T^?_`&Q_TR\O[/\`Q^9\A_RI<_\` M5R?_``TG_P!R=_PCO]A_^!_VGS_[8_Z9>7]G_C\SY#_E2Y_ZN3_X:3_[D[_A M'?[#_P#`_P"T^?\`VQ_TR\O[/_'YGR`%._\`V+O^(
3G]YOPO]!5?S MZW_[%W_$.1XD\&_!K_A)?^%R?\-E>,O#L']L?V?_`,(]_P`(A_PCNLV=SGR/ M-NOMGVC^TMN/,@\KR<_O-^%_H*H`****`/`/!7_*4WXE_P#9*O"7_IW\35[_ M`%X!X*_Y2F_$O_LE7A+_`-._B:O?Z`"BBB@#Q#_@F5_RC<_9\_[)KX<_]-=M M11_P3*_Y1N?L^?\`9-?#G_IKMJ*`,_\`X)._\HLOV:?^R5>%_P#TT6M>_P!> M`?\`!)W_`)19?LT_]DJ\+_\`IHM:]_H`****`/,/VW?C7JO[-?[%_P`7OB-H M5OI]WK?@#P5K/B33X+^-Y+2:XL[&:XB2549':,O&H8*ZD@G#`\CC_P!FCQ!X MO\$?M3_$?X4^(_'?B#XD:?X;\*^'/%ECK7B&STVWU5)=3O-=M9K4_P!G6MI; M-;HNCP/'F#S0\\^Z5U,:1>_UQ_P4_9[\`_LU^%;C0OAUX'\'^`-$N[MK^?3_ M``WHUMI5I-<,B(TS10(B-(4CC4N1DB-1G"C`!\1^(_V[M)^$W_!7KXEZC+\- M?CQX@MO^%8>'=$)T+X;ZMJ#B6WUKQ"S2[4AS]G<2CRY@-DA1]I.PX]=_X>X^ M'?\`HB/[6'_AF]<_^,U]-VW@K2+/QI>^(XM.LTU[4;*#3;F_$0%Q/;02320P ML_4HCW$[`=`96/>J?Q8^*6A?`[X6>)O&WBF__LOPSX/TJZUO5[SR9)_LEG;0 MO-/+Y<:M(^V-&;:BLQQ@`G`H`^^'N/AW_HB/[6'_AF]<_^,UYY^US_`,%+ M+#XP?LH_$_PEHOP-_:KEUGQ3X3U72+!)?@]K<:/<7%G+%&&8P_*"[KD]A7H? MQ`_X+,_!?X/^*O@WI?C6^U#P5'\9+OQ+ID6IZ_-8Z?IGA6_\/N8=3L]3NI+D M11R)=J]JCV[3PRS)\DC1O'(_O_BS]H7P#X"\5:GH6N^./!^BZWHOA^7Q9J&G MW^LVUM=V&C1.4EU.6)W#QV:.K*UPP$:D$%@10!\&_!W]O6R\&^&O`-K-\!/V MF_#MSH.@VMF)M)^#.H2R>"XXDT82^'M*W:*OFZ1=G3Y3/+(T 4L?[C[#]*Q?\`!4CX!?\`"T_%?A:X^*W@"Q_X0[PKHOC* M_P!7NO$VG1:5_9VJS216LBSF?_KS=F8*FS5=.*LWVE!78?%C]K#P]\//A[X. MU[0[34/B1+\2+N*S\':?X5N+*>3Q2\EE/J`:VN+BXALA&+&UNKGS);B.-XX" M$9Y'BC<`^.O`O_!032]!_P"$2V?L^_M*^%/[*TJ&"'^P_@SJ$O\`P@T$?]C^ M9X;TC=HD?F:/=?8)?.DE\J==D7E+'^X^PG@7_@H)I>@_\(EL_9]_:5\*?V5I M4,$/]A_!G4)?^$&@C_L?S/#>D;M$C\S1[K[!+YTDOE3KLB\I8_W'V'[%T;]L M/P#_`,*:U;QQXGU[3_AUI?A:[73/%$7BZ]MM*D\)7Y,2_8[]WD,,`?^$9_L[[1Y.W?!?\`VO[1]NESCRO*^S#[_F_)^U.L_P#!3;]F[PYIVDWF MH_M!_!"QM-?M&O\`3)[CQUI<4>HVZSRV[30LTX$D8G@GB+KD"2&1<[D8#0^- M7[=/PX^!&C_"'5M6UK[?X?\`CAXKT[P?X6UC2%74+"ZO-1M;BXL)#)$QS;S^ M0(TFC#KNGB9ML6^5`#\1O^"<]W\0?^"`_P#PF/\`PJ/]GW]IG]J3_A;/V+^U MO[0^%6M>`?\`A&?[.^T>3MWP7_VO[1]NESCRO*^S#[_F_(?\$Y[OX@_\$!_^ M$Q_X5'^S[^TS^U)_PMG[%_:W]H?"K6O`/_",_P!G?:/)V[X+_P"U_:/MTN<> M5Y7V8??\WY/VIE_X**_"/2_C+\8/!FL^+-/\,2_`BTT&X\9ZSKT\6E:-I;ZR M)FLH#=3NB-(4CB8D?N\W<"*[2>8D>@G[>'PLUCXB^#/"WAWQCX?\::OXTU6V MTJ*/P[JUGJ/]E_:M#U#7+.YNQ'+NBM[FQTV=X9`&\W?&5!0LZ@'XC?\`!.>[ M^(/_``0'_P"$Q_X5'^S[^TS^U)_PMG[%_:W]H?"K6O`/_",_V=]H\G;O@O\` M[7]H^W2YQY7E?9A]_P`WY-W_`((G_LU6_P#P1U_;#\0^*(O"W[5?Q)\.>+/! ML^EW%TW[/FN:++I]VM]:2Q1B,O.95>-)B6RNTQ@8.[C]C/C]_P`%'/@O^SI\ M&O$/C76?B'X/O[30/!1^(,>GZ=KUC+J.L:,Q"6]U9Q/,@FCN9VBMX)`PCEFF MBC5]SBCXL_MQ6'@OQ5\/]&\%^"/&'QFO/B5X?O\`Q5H\G@J^T1K1]+LWTY'N M_M%_J%I"\;G5;,QF)Y"X=FP%&2`>?_\`#W'P[_T1']K#_P`,WKG_`,9H_P"' MN/AW_HB/[6'_`(9O7/\`XS7J'PW_`&[_`(6?&JZ\(0^"O&/A_P`5S^,/[/DC MMK35K."_TR#4-'N=8L9KJRN)8KN/[19VKR1Q+"TY4F0Q"&*>6+H/!_[6/PL^ M(7_"'?V!\2_`&N?\+$^V_P#"*?V?XAL[K_A)OL6?MGV'9(?M7V?:WF^5N\O: M=VW%`'A__#W'P[_T1']K#_PS>N?_`!FL[PM_P6?\$>.=&74=%^$?[4.KV#33 M6XN;/X1:S/"9(97AE3 Z&-,T/3K/2M M/6>>Z%M:Q".(2SS//,X4<9>61W/JSD]Z`/F3_A[CX=_Z(C^UA_X9O7/_`(S1 M_P`/#O_1$?VL/_``S>N?\`QFOJ^B@#\Y?VJO\`@H`/BW\7O@+K&B?"']KO M2;/X?^.)=?UBZM/@WJIG^R?V-J5KY(6:TD5DGDN(X)-JB18II&C>-U619O`O M_!032]!_X1+9^S[^TKX4_LK2H8(?[#^#.H2_\(-!'_8_F>&](W:)'YFCW7V" M7SI)?*G79%Y2Q_N/L/V+^TM^U[X-_9+U'X:0>,Y]0M(_BMXUL_`&C7%O:FXC MBU2\@N9;59@IWI'(]MY(=58+)-&7VQ[Y$X_4O^"EWPLTG]ICQS\+;K5OL.K_ M``R_L[_A*]3U*ZL]+TK1/MNDZIJ\>Z6[GB:?R['2I)I?LZ2^6EQ&Y^2*[>V` M/FKP+_P4$TO0?^$2V?L^_M*^%/[*TJ&"'^P_@SJ$O_"#01_V/YGAO2-VB1^9 MH]U]@E\Z27RIUV1>4L?[C[">!?\`@H)I>@_\(EL_9]_:5\*?V5I4,$/]A_!G M4)?^$&@C_L?S/#>D;M$C\S1[K[!+YTDOE3KLB\I8_P!Q]A^M?AW^W3\./B5^ MR=X@^-]GK6SX9>&O^$@FN]:55O(9;/1KR\M;J^@^RM+Y]N_V*6:)H]S21-&0 MH9M@/#O[9.CZ9X$\1^(?BAX>\0?`33_"WV:2^N/B%=Z79V"P7,AA@F74;2\N M=/.^96B,7VD3HWEEXD6>W:4`^2O`O_!032]!_P"$2V?L^_M*^%/[*TJ&"'^P M_@SJ$O\`P@T$?]C^9X;TC=HD?F:/=?8)?.DE\J==D7E+'^X^P_-FL_\`!3+X MQ?LH?M:W_C;X8?L1?M!^/_#?BKX;>%_#!\.0^$M2\.Z5X`FTJ34B^FZ:5T17 MN;$"\#(\L2."S@!(_+@A_6CP;^TOX6\8_$7Q9X6^U_V5J_A/Q7'X-\O4988/ M[8U%M#M-<\NR&\M-ML;K>5P''V:X.W9'O/'^)?\`@IM^S=X+U&*SUG]H/X(: M3>36EM?QP7GCK2X)'M[F".XMY@KS@F.6"6*5''#QR(RDJP)`/Q6_X)SW?Q!_ MX(#_`/"8_P#"H_V??VF?VI/^%L_8O[6_M#X5:UX!_P"$9_L[[1Y.W?!?_:_M M'VZ7./*\K[,/O^;\A_P3GN_B#_P0'_X3'_A4?[/O[3/[4G_"V?L7]K?VA\*M M:\`_\(S_`&=]H\G;O@O_`+7]H^W2YQY7E?9A]_S?D_:GX\%"?AK\6]$\3S M^'];T^_U7P5XU_X03Q!HAUC3(=3T6];7Y=#BDN8I+E1%'//"\T"NPFN(=HAB MDF=8&[_X#_%6M^";O[!XBT_1]9MKZ[T"XWRIY-W% M$[/;R;X9EV2!3F*08RIP`?@O_P`$Y[OX@_\`!`?_`(3'_A4?[/O[3/[4G_"V M?L7]K?VA\*M:\`_\(S_9WVCR=N^"_P#M?VC[=+G'E>5]F'W_`#?D/^"<]W\0 M?^"`_P#PF/\`PJ/]GW]IG]J3_A;/V+^UO[0^%6M>`?\`A&?[.^T>3MWP7_VO M[1]NESCRO*^S#[_F_)^O/P6_X*P?#WXB>!-#\4^--)\0?`_PSXM\*Q^-O#VK M_$+4-&L;#6M':2QB:Z6>UO[F.VV2:IIB&.\,$CM?1B-)"LHC]@\$?M/>"?&. MC_#>67Q%X?T?5_BSI0U?POHMWKFGRW^LQ"U2ZF%K]GGEBO/)AD5Y'M))H@I# MB1D*N0#\X/\`@C'\?K;_`()K_L46_P`)-:^$W[56OOH&OZG+9ZG'\$];MO[1 MM99RT,QAV2>4S+R4+L5Z9-?5_P#P]Q\._P#1$?VL/_#-ZY_\9KZ/^%OQ9\+? M''P)8>*?!7B;P_XP\,ZIYGV/5]$U&'4+"[\N1HI/+GA9HWVR(Z':3AD8'D$5 MT%`'RA_P]Q\._P#1$?VL/_#-ZY_\9K.\5?\`!9_P1X%T.74];^$?[4.D:="\ M< _"+68(4:218T4NT0`+.ZJ!GEF`')%?8%9?C+P5I'Q#\/RZ3KNG6>K:9 M/)%+):W40EB=HI%EC)4\$K(B,/=10!\R?\/#O_`$1']K#_`,,WKG_QFC_A M[CX=_P"B(_M8?^&;US_XS7U?10!\H?\`#W'P[_T1']K#_P`,WKG_`,9KYS\- M_MOK8?MT?$3QW+\`OVG-,TWQ#::6FG>)K7X/:K+KELEN;%KG38XI=.F46=[] MG*7#"6.0""`Q@R%)[;].Z^%G_!33PEX"GU/6]=\+>,-%^$FB^()?"^H?%& M_GTBV\+V%_%J)TF5)4>^&I1QIJBM9M,UD(5<&8N+4?::`/GKP+_P4$TO0?\` MA$MG[/O[2OA3^RM*A@A_L/X,ZA+_`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`'X]?\$SOBM\8?\` M@C6OC_Q5X*_9!^/_`,5=:^.VH_;-;\*P>`]9\,V'P]CL+J]^QP6UT;"<:A'/ M%?,[^(/\`P0'_`.$Q_P"%1_L^_M,_M2?\+9^Q?VM_ M:'PJUKP#_P`(S_9WVCR=N^"_^U_:/MTN<>5Y7V8??\WY/VI_:1_X*.?!?]EK MPK\2KSQ+\0_!\FM_"?P_)XD\0>&+37K$Z_;VX2(Q)]DDF1UDN'N+6*$2;!)) M=VZALRKGO_'/[0O@'X8>%?$NN^)?''@_P]HG@R[AL/$&H:GK-M:6FA7$R6[Q M0W4LCA()'2[M65)"I87,)`(D7(!^"_\`P3GN_B#_`,$!_P#A,?\`A4?[/O[3 M/[4G_"V?L7]K?VA\*M:\`_\`",_V=]H\G;O@O_M?VC[=+G'E>5]F'W_-^0_X M)SW?Q!_X(#_\)C_PJ/\`9]_:9_:D_P"%L_8O[6_M#X5:UX!_X1G^SOM'D[=\ M%_\`:_M'VZ7./*\K[,/O^;\G[D_`;]L/P#^TI\3/BGX1\(Z]I^JZW\'?$$?A MOQ%!!>VT[0W#VD-QO"Q2.ZQAY)K8F14(N+&\CVYA)/E_P#_X*P?#WXO_`/"N MO^$HTGQ!\&O^%RZ5;ZS\.O\`A.]0T:U_X3J";[+A++[)?W.+@?;K+%M/Y4\G MVD>7')Y (?!'P_^$O[3WQPT;XT^(?"][XDUN\^" MVM^%'\$P:%JJ7J/';,MU_:!N5FF7`D@\KR`?WGF87]E/^'N/AW_HB/[6'_AF M]<_^,U[AX(_:>\$^,='^&\LOB+P_H^K_`!9TH:OX7T6[US3Y;_68A:I=3"U^ MSSRQ7GDPR*\CVDDT04AQ(R%7._\`"WXL^%OCCX$L/%/@KQ-X?\8>&=4\S['J M^B:C#J%A=^7(T4GESPLT;[9$=#M)PR,#R"*`/G#_`(>X^'?^B(_M8?\`AF]< M_P#C-'_#W'P[_P!$1_:P_P##-ZY_\9KZOHH`^._V-OVD;']IO_@HY\5]:L?" MGQ%\(QV7PV\*61M/&/A>[\/WDI75/$3^8D-RBL\1$@`<#!97'537V)67;>"M M(L_&E[XCBTZS37M1LH--N;\1`7$]M!)-)#"S]2B/<3L!T!E8]ZU*`"BBB@#Q M#_@F5_RC<_9\_P"R:^'/_37;44?\$RO^4;G[/G_9-?#G_IKMJ*`,_P#X)._\ MHLOV:?\`LE7A?_TT6M>_UX!_P2=_Y19?LT_]DJ\+_P#IHM:]_H`****`"BBB M@`KS#]K;]F:W_:Y^&>G>#-4UG4-&\.GQ!I>M:LVF33VFIW2:==QW]O%:WD,L M HZKHMCHETTM_/J\%W);K9Z;:&*)Y&>.7S3YK M0M%!#G^+/^#?_11I6I^'_#/Q$U"U\*:CX*E\,10:_'JNIW>F7O\`PAI\(0ZG M!%;:I::49!IZPES-ILLSEKE5N(DDA6V_0^B@#Y0_:[_8$^)?QT^/NK>,/`?Q MFT_X=Z7XH\/Z)H.OZ6_A_4YKO4DTJYUFX@$>HZ=K&G7=K&TNK[W6!TD8V<2F M4PR3P2]!>?L$7,7_``3T^'7P)@U[P?K@'P_HN@W#>+O!,'B'P[XH33K6.W M`O\`2I)D=HR\:7,:PW<4D5Q!;L99(TDBF^CZ\`_:$_XJ3]N'X(>&?$7[WP%> MZ5X@UF*TNODL-0\46%QH\^D(QX$]Q%:G6;N&V8L-UBUV(S)81S0`'S?XZ_X( MV:KXI^(7A6QL-9T]+3PEX?M;X:UK&FO)HUMK-O>Z[_9EIH^G6=]!>V-GIUMX MCUL0*M[#)8F'PT;6YE:SNP_L'Q#_`.":.J_%WPKX.T+Q1\4-0UC3;+X:^+OA MCXLGFTQYM3UFP\0)8;I+*ZEN9&MI+5]/A6*2]&H320\7$L\Y>Z?P_P#9N\/7 MGP1_9.TY_!'PH^('AC]H32/"NB:9\8?%]OX+NK2:^O#>:;%K^HEIXQ%XIUB. M$:Q>VEW!#JBM+#,`T@U!(+_`^'FI?M!?"S]EW2KWX?WOQ@3^P=*^,WQ%%IJ7 M@6"&_P#'FK0>+EN_#]EJMK/IJ3V_]I6]Y=R?9K-+&XE5W,)B\L;`#T_X!_\` M!&'4/A3X@^(VM:S\2=/UC6_B1X@\`:]?W=OI>MSR2OX5UO\`M-#--J^MZG=3 M27$2Q6@83I'!'!&RQ.0P;T#XI_\`!*W2_C/\`K#X *[?P9\1?$/C+PS-I_B&V@?2?"]_JEIKVI6316&H?;=.@\ M3VL5[;VL\\5[>PW*Z@!KRWD^AX6_8O\`C1\9_P#@G5\"/V` M'V?JW_!)KQMH]KKL_@WXV_\`",ZOXU^Q2^*)%T+4((=4E76/%.MWJ02:?JME M?V=O+J/B59(DAO1+%%IL<,LUVD\V[GX/^""FA>(/V5-(^$7B?XD^(+SP_::K M8W]_=Z);2:+?W<5O\.HO!1ACD2X?R]_E?;2'$L3JS6LL4T3.S^(>%O@#^TO\ M8=1LKKXC>'O&%_+\8K2Q^'GQ`6=8X(]0LE@\!P:W;S)$52ULU2S^(QMKB,10 MB2^GDL9/,U6T>ZZ#X4^'_BA\"?\`@E#<>'_$X\82>(OA;\"O!WC#X8:EKNBQ M:?K/ASQU<:?J=A%X>L3!;P":2&>VTZT6RE2:ZG&KS6MTUU%>+`0#U_\`:%_X M(PZA^T/X^\<>(=4^).GI>?$KP_?P:XC:7K;6EAKUWX2D\,2:IIMBFMII\$8M M2I$=U:WESAYX_MH5XC;^X?&+_@G]X6_:H^*?PR\4_&/2/`'Q+_X0'PKJ^B76 MD:KX0ANM*OM1U";2)7U&W@NI;C[+Y?\`9DR)&3,X2](,WR$R>_T4`?*'[0O_ M``2MTO\`:4O?'$&N^,=0M-$\?^-;_P`4ZA;V%@D=W#;WGP_D\&2VD4SNZ+($ MD:\6=HF`($1B(_>'C]6_X)#:SXQ_:GL/C'XC^(GA_5?%NL:KH.I>,[&S\.ZI MHN@ZS_8=XMQI;6UG8:Q!NN(L9,VLR:QB1(3$D$,8MC]OT4`%%%%`!1110!XA M^W3^Q#I?[=_@?P_X8UW7-0T71--N]6?4!80HUW>V^H^&]9T&6.*1\I#(J:PT MRR-'*,P!2A#[E^;_`(@_\$,?^$[\8^&/$W_"T?LOB#PYXKTCX@[O^$;\RSN/ M$-AJGB_6M_E?:@ZZ?)J?BK=]E\TS+:V'D_:FEF^U1??]%`'S!\(/^"9NG>%_ MV3OBU\-_&/C+Q!XCU#XY_P#"2?\`"6ZIIMW?65A#_;5YJ5S-_96F7EW>VVF^ M6NI2+^ZSYK1I)-YK5H>*?V3_`(N?$:#P_P"(/$?Q=\'W7Q"\"^((]>\*26/@ M&6U\+Z>_]G:CILQN=/;4I+VYDFMM5NPS+J44:O!9,D2^7<"[\?\`VA_">J_% MCXA?'34;_3-0U_Q7\+_B5\/[_0;1+=[C4=.\$6M[X6UR_FL+-`9)HYKRQUQF M>WC>>]FTI;8&=[&W@A[#X207GQ)\,?M17%OI'Q@T2V^-^JZAK?A.?2](NO#7 MB26SMO"GA_1I9;=]1C@73-0^W6\ZVJWYMVD,/VA`UNC3``/AG_P2E_X9[\`: M7IOP]\>_9-7\%>*]*\3^#[SQ%HG]J6UE]B\%6G@XP:A!!<6K7F^QAN)M\,MI MMGGB.UDB:.8_9._X)2_\,OZ%\-++_A/?[<_X5WXKTOQ/O_L3[+_:'V+X>1>" M_(Q]H?R]_E?;=_S;=WD[6QYQ\/\`AG\+=%F_9@^*7@Y_`'C#PGX'\6W>BP-J M?PB^#&J^`UU%XI;B[U&!_"6KK>1O'%96J?:[QX'CU>WO8],2*ZN+>&VD^8/V M.?@7\2_CU_P22UKP^_P]U!?!W@CX%:SXB\$Q:;X2\A=?%D%U'$+>WO)-6LM1CMI7OTN%`/K_P#9'_X(4:K^SG\!OACX#USX MO:?XHM/@U=P/X6NK'P<^ER-;OXQTCQ3J$=Z'O[@3R2SZ-:P0R1>0((Y)F=+E MBNSW#]@;]@WQM^RK\4_B%XV^(/Q9_P"%K^)_B!I6BZ9=7G]EZA8;6T^;4YGG M\NZU.^CA\^34Y&^S62VMG#LQ#;QAB*^,/VA_"?[4>E?&7]G#48-,^*%_H_[, MOQ*M-$N=0@MYM9N/%'A]AXBBU36-1C(F_M&\_P"$7M=$9+JVC#F]U_4K:$&] M<6EKS[?L7_'IOV0_B/X%\>^$/&&L2^&_@_XD\46EF)#J;3^,=2\`Z%I"O;2P M._VN\N=0E\>F>&)I/,N+YKN=#)>64\H!]O\`P=_X))^`?@)^Q[X)^&/A&P\' M^&M;T&[\#W_B+Q3H_A2VT^[\97'AO4[#4/.NUB8.\ER]I,-\DLIB-W(V9#D/ MQ_B;_@B_9^,?V<=&^%.H?$#=X2U+X5>&_A1XW<>&;6XO]9L]`6Z?3[O3&N7F M@TVX-Q>W#RO-!>L%$'V=K6:(7)/!]YX[\"?MN^#M%U+4O$&N>(+;X@7OA&Y\ M1ZAIMO::KXX\#1>#3K!O+Z.T@@M)[>Q\1ZA;V<5Y#;1K;/,+8.);V[^U?;]` M'B'["'[)&H?L@_#WQ-IFL^(-/\5:WXJ\0-KU_JUNNMF2\?[%:6:&9]7U;5+J M218K.)`PN5C$:1JL2E69_;Z**`"BBB@`HHHH`*^(/VL?^"2?BK]J#]F?XE_` MK_A:WA_0_@Y\1-5U3Q#]G_X0N:Z\3:?J-[JTNN[O[0_M%+:2W35I=WE?85=K M1?(\U93]K'V_10!\H>,/^"=OC.+]JKQM\5_`WQ8T_P`(:WXQM/$=O&;CPB-4 MDT=]3T+PQIUO/"7NTB:2UN_#%M=$2Q/'-'<20%$($]9_[#?_``2[UG]DWX[7 M7Q`U_P")?_";:O??V_Y\?V'5#N_M.W\*VZ_Z3J>J:C>/Y*^&%/[VXDW?;-J^ M4D"(WU_7YH?#_P`"^&?'7P:_9R\=_&CX?:A\4_"GB3P5K%_\4;)_!%WXWDD^ M)$YT&-IK_2;:WNIH[RT%EKMBKM;K'IL<+6"FV0PVY`/^":W_!*7_AWKX<^ M'VB2>/?^$QTGX4^%=4\,>&E71/[.N?\`B<7UGJ6L3WDGVB59]]]91&U2)(/L MT#/%*UVY$XX_XJ?\$.M+^*.G>-$E^(NH6EYXQM/%R/*NCH\=K<:Q/XP:SD"& M4%H[6#QOK"2Q[@;F2"QD5[58IHKCR#]NG7_CU8>,/#\WA'1/CAI6M_#&TU;5 M_AYX<7PR?%%I!;I\,=9CMM2U+5Q!?+<:XNO74VG&WDU)Q.%@?[-.9ENI_'_^ M"FGPJ^*&I_M:>%H-0@^*'Q+\=^$/&LGA3X67_B[PA% "M2U87$=QI$ M=C+INJ)JUY':G4+6?3[>..PL;MA P>.?^"3\6I?LXZ5\/O#GQ#\0:/_PA'Q`U'Q]X.U2[OM8EO[*745U`WEOJ M-[::E::C?9?6-4*317EK*5>U6=KGR[AKOP#4?A/\5-$_:$^"G[0NG>&OB!%X M@U+_`(2_XA^+;"+3KR.1M'U/6?"6GP:5JUC$H+:A8^$(@RZ?`&DEU'P\KHM[ M*C_:/+_@E^Q?\>M+^,OCG4/$_A#QA-JO[0OC7P^WQ4CO)#?:=?",>!=6N=*$ MKN\?]AVEG<>/M.0"1K>:&-+"66YF-I$X!^A_[!O[%%[^Q)8^+=)AU_P_J/AG M7_[!ETW2]-T.ZL?[$ET_P[IFARHLUQ?74DUO)'I5M)$DA\V'=(LDUR2'7C_V M:_\`@DGX!_97\#_`+3_"-AX/T+6_A#=V5_XBUO1_"EMIMW\0;BV\-ZKHGG7; M1,'$C/JLUUOD><@^8F29#(/B#X:?`W]I?P/XTL/C;J5A\4(_B_\`#GX%:WH5 MK