EX-99.1 10 trp-12312016xsupplementary.htm FORM 40-F SUPPLEMENTARY INFORMATION Exhibit
EXHIBIT 99.1


Supplementary information
SELECTED QUARTERLY AND ANNUAL CONSOLIDATED FINANCIAL DATA
 
First

 
Second

 
Third

 
Fourth

 
Annual

 
 
 
 
 
 
 
 
 
 
Toronto Stock Exchange (Stock trading symbol TRP)
 
 
 
 
 
 
 
 
2016 (dollars)
 
 
 
 
 
 
 
 
 
High
51.55

 
58.83

 
63.41

 
63.00

 
63.41

Low
41.51

 
48.46

 
58.15

 
57.36

 
41.51

Close
51.06

 
58.46

 
62.31

 
60.54

 
60.54

Volume (millions of shares)
123.5

 
107.2

 
104.5

 
115.4

 
450.6

 
 
 
 
 
 
 
 
 
 
2015 (dollars)
 
 
 
 
 
 
 
 
 
High
59.50

 
58.12

 
52.16

 
48.44

 
59.50

Low
50.51

 
50.15

 
41.10

 
40.58

 
40.58

Close
54.16

 
50.76

 
42.20

 
45.19

 
45.19

Volume (millions of shares)
84.2

 
79.6

 
84.4

 
124.4

 
372.6

 
 
 
 
 
 
 
 
 
 
2014 (dollars)
 
 
 
 
 
 
 
 
 
High
50.97

 
51.89

 
63.86

 
58.18

 
63.86

Low
47.14

 
49.34

 
50.38

 
49.30

 
47.14

Close
50.25

 
50.93

 
57.68

 
57.10

 
57.10

Volume (millions of shares)
58.6

 
58.9

 
104.7

 
115.0

 
337.2

 
 
 
 
 
 
 
 
 
 
2013 (dollars)
 
 
 
 
 
 
 
 
 
High
50.08

 
51.21

 
48.48

 
48.93

 
51.21

Low
46.80

 
44.62

 
44.75

 
43.94

 
43.94

Close
48.50

 
45.28

 
45.25

 
48.54

 
48.54

Volume (millions of shares)
76.90

 
85.80

 
64.30

 
68.90

 
295.90

 
 
 
 
 
 
 
 
 
 
2012 (dollars)
 
 
 
 
 
 
 
 
 
High
44.75

 
43.80

 
46.29

 
47.44

 
47.44

Low
40.34

 
41.47

 
42.73

 
43.16

 
40.34

Close
42.83

 
42.67

 
44.74

 
47.02

 
47.02

Volume (millions of shares)
95.4

 
79.3

 
78.5

 
66.0

 
319.2

 
 
 
 
 
 
 
 
 
 
New York Stock Exchange (Stock trading symbol TRP)
 
 
 
 
 
 
 
 
2016 (U.S. dollars)
 
 
 
 
 
 
 
 
 
High
39.70

 
45.34

 
48.52

 
47.92

 
48.52

Low
28.40

 
36.76

 
44.77

 
42.69

 
28.40

Close
39.31

 
45.22

 
47.56

 
45.15

 
45.15

Volume (millions of shares)
86.4

 
67.9

 
61.3

 
61.4

 
277.0

 
 
 
 
 
 
 
 
 
 
2015 (U.S. dollars)
 
 
 
 
 
 
 
 
 
High
49.64

 
48.10

 
40.78

 
35.57

 
49.64

Low
41.51

 
40.33

 
30.60

 
29.89

 
29.89

Close
42.72

 
40.62

 
31.58

 
32.59

 
32.59

Volume (millions of shares)
69.9

 
57.9

 
66.4

 
78.1

 
272.3

 
 
 
 
 
 
 
 
 
 
2014 (U.S. dollars)
 
 
 
 
 
 
 
 
 
High
45.81

 
48.13

 
58.40

 
51.84

 
58.40

Low
42.21

 
44.78

 
47.24

 
43.71

 
42.21

Close
45.52

 
47.72

 
51.53

 
49.10

 
49.10

Volume (millions of shares)
31.9

 
29.5

 
88.2

 
99.5

 
249.0

 
 
 
 
 
 
 
 
 
 
2013 (U.S. dollars)
 
 
 
 
 
 
 
 
 
High
49.64

 
49.65

 
46.79

 
46.45

 
49.65

Low
45.80

 
42.39

 
42.59

 
42.41

 
42.39

Close
47.89

 
43.11

 
43.94

 
45.66

 
45.66

Volume (millions of shares)
33.3

 
38.2

 
30.3

 
27.9

 
129.7

 
 
 
 
 
 
 
 
 
 
2012 (U.S. dollars)
 
 
 
 
 
 
 
 
 
High
45.07

 
44.50

 
47.02

 
47.78

 
47.78

Low
39.74

 
39.87

 
41.68

 
43.54

 
39.74

Close
43.00

 
41.90

 
45.50

 
47.32

 
47.32

Volume (millions of shares)
39.7

 
29.2

 
20.1

 
20.0

 
109.0


 
TransCanada Corporation 2016
195


Five year financial highlights
(millions of Canadian $, unless otherwise noted)
2016

 
2015

 
2014

 
2013

 
2012

 
 
 
 
 
 
 
 
 
 
Income Statement
 
 
 
 
 
 
 
 
 
Revenues
12,505

 
11,300

 
10,185

 
8,797

 
8,007

Segmented earnings
 
 
 
 
 
 
 
 
 
Canadian Natural Gas Pipelines
1,373

 
1,413

 
1,454

 
1,347

 
1,168

U.S Natural Gas Pipelines
1,219

 
606

 
556

 
455

 
550

Mexico Natural Gas Pipelines
290

 
171

 
142

 
79

 
90

Liquids Pipelines
827

 
(2,643
)
 
830

 
603

 
553

Energy
(1,140
)
 
792

 
1,036

 
1,113

 
579

Corporate
(256
)
 
(238
)
 
(87
)
 
(124
)
 
(111
)
 
2,313

 
101

 
3,931

 
3,473

 
2,829

Interest expense and other
(1,476
)
 
(1,207
)
 
(1,107
)
 
(951
)
 
(891
)
Income taxes
(352
)
 
(34
)
 
(831
)
 
(611
)
 
(466
)
Net income/(loss)
485

 
(1,140
)
 
1,993

 
1,911

 
1,472

Net income attributable to non-controlling interests
(252
)
 
(6
)
 
(153
)
 
(125
)
 
(118
)
Net income/(loss) attributable to controlling interests
233

 
(1,146
)
 
1,840

 
1,786

 
1,354

Preferred share dividends
(109
)
 
(94
)
 
(97
)
 
(74
)
 
(55
)
Net income/(loss) attributable to common shares
124

 
(1,240
)
 
1,743

 
1,712

 
1,299

 
 
 
 
 
 
 
 
 
 
Comparable earnings
2,108

 
1,755

 
1,715

 
1,584

 
1,330

Comparable EBITDA
6,647

 
5,908

 
5,521

 
4,859

 
4,245

 
 
 
 
 
 
 
 
 
 
Cash Flow Statement
 
 
 
 
 
 
 
 
 
Funds generated from operations
4,821

 
4,730

 
4,415

 
4,120

 
3,344

Decrease/(Increase) in operating working capital
248

 
(346
)
 
(189
)
 
(326
)
 
287

 
 
 
 
 
 
 
 
 
 
Net cash provided by operations
5,069

 
4,384

 
4,226

 
3,794

 
3,631

 
 
 
 
 
 
 
 
 
 
Comparable distributable cash flow
3,665

 
3,562

 
3,405

 
3,234

 
2,589

 
 
 
 
 
 
 
 
 
 
Capital spending – capital expenditures
5,007

 
3,918

 
3,489

 
4,264

 
2,595

Capital spending – projects in development
295

 
511

 
848

 
488

 
3

Acquisitions, net of cash acquired
13,608

 
236

 
241

 
216

 
214

Cash dividends paid on common and preferred shares
1,536

 
1,538

 
1,439

 
1,356

 
1,281

 
 
 
 
 
 
 
 
 
 
Balance Sheet
 
 
 
 
 
 
 
 
 
Assets
 
 
 
 
 
 
 
 
 
Plant, property and equipment
54,475

 
44,817

 
41,774

 
37,606

 
33,713

Total assets
88,051

 
64,398

 
58,407

 
53,778

 
48,287

 
 
 
 
 
 
 
 
 
 
Capitalization
 
 
 
 
 
 
 
 
 
Long-term debt
40,150

 
31,456

 
24,639

 
22,745

 
18,804

Junior subordinated notes
3,931

 
2,409

 
1,160

 
1,063

 
994

Preferred shares
3,980

 
2,499

 
2,255

 
1,813

 
1,224

Common shareholders' equity
20,277

 
13,939

 
16,815

 
16,712

 
15,687


196
TransCanada Corporation 2016
 



 
2016

 
2015

 
2014

 
2013

 
2012

 
 
 
 
 
 
 
 
 
 
Per Common Share Data
 
 
 
 
 
 
 
 
 
Net income – basic

$0.16

 

($1.75
)
 

$2.46

 

$2.42

 

$1.84

– diluted

$0.16

 

($1.75
)
 

$2.46

 

$2.42

 

$1.84

Comparable earnings per share

$2.78

 

$2.48

 

$2.42

 

$2.24

 

$1.89

 
 
 
 
 
 
 
 
 
 
Dividends declared

$2.26

 

$2.08

 

$1.92

 

$1.84

 

$1.76

Book Value1,2

$23.47

 

$19.84

 

$23.73

 

$23.62

 

$22.24

 
 
 
 
 
 
 
 
 
 
Market Price
 
 
 
 
 
 
 
 
 
Toronto Stock Exchange (dollars)
 
 
 
 
 
 
 
 
 
High
63.41

 
59.50

 
63.86

 
51.21

 
47.44

Low
41.51

 
40.58

 
47.14

 
43.94

 
40.34

Close
60.54

 
45.19

 
57.10

 
48.54

 
47.02

Volume (millions of shares)
450.6

 
372.6

 
337.2

 
295.9

 
319.2

New York Stock Exchange (U.S. dollars)
 
 
 
 
 
 
 
 
 
High
48.52

 
49.64

 
58.40

 
49.65

 
47.78

Low
28.40

 
29.89

 
42.21

 
42.39

 
39.74

Close
45.15

 
32.59

 
49.10

 
45.66

 
47.32

Volume (millions of shares)
277.0

 
272.3

 
249.0

 
129.7

 
109.0

Common shares outstanding (millions)
 
 
 
 
 
 
 
 
 
Average for the year
759.0

 
708.6

 
708.0

 
706.7

 
704.6

End of year
863.8

 
702.6

 
708.7

 
707.4

 
705.5

Registered common shareholders1
28,475

 
29,367

 
30,513

 
31,300

 
31,449

 
 
 
 
 
 
 
 
 
 
Per Preferred Share Data (dollars)
 
 
 
 
 
 
 
 
 
Dividends declared:
 
 
 
 
 
 
 
 
 
Series 1, 2, 3, 4, 5, 7, 9, 11, 13 and 15 cumulative first preferred shares3

$7.27

 

$6.31

 

$5.34

 

$4.16

 

$3.25

 
 
 
 
 
 
 
 
 
 
Financial Ratios
 
 
 
 
 
 
 
 
 
Dividend yield4,5
3.7
%
 
4.6
%
 
3.4
%
 
3.8
%
 
3.7
%
Price/earnings multiple5,6
378.4

 
(25.8
)
 
23.2

 
20.1

 
25.5

Price/book multiple2,5
2.6

 
2.3

 
2.4

 
2.1

 
2.1

Debt to debt plus shareholders' equity7
68
%
 
71
%
 
61
%
 
59
%
 
56
%
Total shareholder return8
39.4
%
 
(17.7
)%
 
22.0
%
 
7.2
%
 
9.9
%
Earnings to fixed charges9
1.3

 
0.2

 
2.8

 
2.8

 
2.2

1 
As at December 31.
2 
The price/book multiple is determined by dividing price per common share by book value per common share as calculated by dividing common shareholders' equity by the number of common shares outstanding as at December 31.
 
 
Cumulative First Preferred Shares
 
Issue Date
 
Annual Dividend Per Share

 
First quarterly dividend paid
3 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Series 1
 
September 2009
 

$0.82

 
December 2009
 
 
Series 2 - upon conversion of Series 1
 
December 2014
 

$0.61

 
March 2015
 
 
Series 3
 
March 2010
 

$0.54

 
June 2010
 
 
Series 4 - upon conversion of Series 3
 
June 2015
 

$0.45

 
September 2015
 
 
Series 5
 
June 2010
 

$0.57

 
November 2010
 
 
Series 6 - upon conversion of Series 5
 
February 2016
 

$0.51

 
May 2016
 
 
Series 7
 
March 2013
 

$1.00

 
April 2013
 
 
Series 9
 
January 2014
 

$1.06

 
January 2014
 
 
Series 11
 
March 2015
 

$1.19

 
May 2015
 
 
Series 13
 
April 2016
 

$0.19

 
May 2016
 
 
Series 15
 
November 2016
 

$0.33

 
January 2017
4 
The dividend yield is determined by dividing dividends per common share declared during the year by price per common share as at December 31.
5 
Price per common share refers to market price per share as reported on the Toronto Stock Exchange as at December 31.
6 
The price/earnings multiple is determined by dividing price per common share by the basic net income per share.
7 
Debt includes Junior Subordinated Notes, total long-term debt, including the current portion of long-term debt, plus preferred securities as at December 31 and excludes long-term debt of joint ventures. Shareholders' equity in this ratio is as at December 31.
8 
Total shareholder return is the sum of the change in price per common share plus the dividends received plus the impact of dividend re-investment in a calendar year, expressed as a percentage of the value of shares at the end of the previous year.
9 
The earnings to fixed charges ratio is determined by dividing earnings by fixed charges. Earnings is calculated as the sum of EBIT and interest income and other, less income attributable to non-controlling interests with interest expense and undistributed earnings of investments accounted for by the equity method. Fixed charges is calculated as the sum of interest expense, and capitalized interest.

 
TransCanada Corporation 2016
197


Investor information
STOCK EXCHANGES, SECURITIES AND SYMBOLS
TransCanada Corporation
Common shares are listed on the Toronto and New York stock exchanges under the symbol: TRP
First Preferred Shares, Series 1 are listed on the Toronto Stock Exchange under the symbol: TRP.PR.A
First Preferred Shares, Series 2 are listed on the Toronto Stock Exchange under the symbol: TRP.PR.F
First Preferred Shares, Series 3 are listed on the Toronto Stock Exchange under the symbol: TRP.PR.B
First Preferred Shares, Series 4 are listed on the Toronto Stock Exchange under the symbol: TRP.PR.H
First Preferred Shares, Series 5 are listed on the Toronto Stock Exchange under the symbol: TRP.PR.C
First Preferred Shares, Series 6 are listed on the Toronto Stock Exchange under the symbol: TRP.PR.I
First Preferred Shares, Series 7 are listed on the Toronto Stock Exchange under the symbol: TRP.PR.D
First Preferred Shares, Series 9 are listed on the Toronto Stock Exchange under the symbol: TRP.PR.E
First Preferred Shares, Series 11 are listed on the Toronto Stock Exchange under the symbol: TRP.PR.G
First Preferred Shares, Series 13 are listed on the Toronto Stock Exchange under the symbol: TRP.PR.J
First Preferred Shares, Series 15 are listed on the Toronto Stock Exchange under the symbol: TRP.PR.K
Dividend Payment Dates    Scheduled common share dividend payment dates in 2017 are January 31, April 28, July 31 and October 31.
For information on dividend payment dates for preferred shares visit our website at www.transcanada.com.
Dividend Reinvestment and Share Purchase Plan    TransCanada's dividend reinvestment and share purchase plan (Plan) allows common and preferred shareholders of TransCanada to purchase common shares of TransCanada by reinvesting their cash dividends without incurring brokerage or administrative fees. Participants in the Plan may also buy additional common shares, up to Cdn$10,000 per quarter. For more information on the Plan please contact our Plan agent, Computershare Investor Services Inc. or visit our website at www.transcanada.com.

TRANSFER AGENTS, REGISTRARS AND TRUSTEES
TransCanada Corporation Common Shares    Computershare Investor Services Inc. (Montréal, Toronto, Calgary and Vancouver) and Computershare Trust Company, N.A. (Golden)
TransCanada Corporation First Preferred Shares, Series 1, 2, 3, 4, 5, 6, 7, 9, 11, 13 and 15 Computershare Investor Services Inc. (Montréal, Toronto, Calgary and Vancouver)
TCPL Debentures        
Canadian Series: BNY Trust Company of Canada (Halifax, Montréal, Toronto, Calgary and Vancouver)
10.5% series P
 
11.80% series U
 
9.80% series V
 
9.45% series W
U.S. Series: The Bank of New York (New York) 9.875%
TCPL Canadian Medium-Term Notes    CIBC Mellon Trust Company (Montréal and Toronto)

198
TransCanada Corporation 2016
 



TCPL U.S. Medium-Term Notes and Senior Notes    The Bank of New York Mellon (New York)
TCPL U.S. Junior Subordinated Notes 2007    Computershare Trust Company, N.A. (Jersery City, NJ)
NOVA Gas Transmission Ltd. (NGTL) Debentures        
Canadian Series: BNY Trust Company of Canada (Montreal and Toronto) 9.90% series 23
U.S. Series: U.S. Bank Trust National Association (New York) 7.875%
NGTL Canadian Medium-Term Notes    BNY Trust Company of Canada (Montreal and Toronto)
NGTL U.S. Medium-Term Notes    U.S. Bank Trust National Association (New York)
TransCanada Trust Subordinated Notes
2015 U.S. Junior Subordinated Notes: CST Trust Company
2016 U.S. Junior Subordinated Notes: CST Trust Company

REGULATORY FILINGS
Annual Information Form    TransCanada's 2016 Annual information form, as filed with Canadian securities commissions and as filed under Form 40-F with the SEC, is available on our website at www.transcanada.com.
A printed copy may be obtained from:
Corporate Secretary, TransCanada Corporation, 450 1st Street SW, Calgary, Alberta, Canada T2P 5H1


 
TransCanada Corporation 2016
199


Shareholder assistance
If you are a registered shareholder and have questions regarding your account, please contact our transfer agent in writing, by telephone or e-mail at:
Computershare Investor Services Inc., 100 University Avenue, 8th Floor, Toronto, Ontario, Canada M5J 2Y1
Toll-free: 1.800.340.5024
Telephone: 1.514.982.7959
E-mail: transcanada@computershare.com
www.computershare.com
If you hold your shares in a brokerage account (beneficial shareholder), questions should be directed to your broker on all administrative matters.
If you would like to receive quarterly reports, please contact Computershare or visit our website at www.transcanada.com.
Electronic Proxy Voting and Delivery of Documents    TransCanada is using Notice & Access which allows an issuer to deliver the Management information circular to registered shareholders by posting it and other related materials on SEDAR at www.sedar.com and www.transcanada/notice-and-access.html. Registered shareholders who still wish to receive a paper copy of the Management information circular may request one free of charge by following the instructions set out in the notice that will be sent to all registered shareholders by mail. TransCanada is pleased to offer all shareholders the ability to receive their documents (annual report, management information circular, notice of meeting and view-only proxy form or voting instruction form) and vote online.
In 2017, registered shareholders who opt to receive their documents electronically will have a tree planted on their behalf through eTree. For more information and to sign up online, registered shareholders can visit www.investorcentre.com/transcanada.
Shareholders who do not have access to e-mail, or who still prefer to receive their proxy materials by mail also have the ability to choose whether to receive TransCanada's annual report by regular mail. Each year, shareholders are required to renew their option and will receive a notification for doing so. The annual report is available on the TransCanada website at www.transcanada.com at the same time that the report is mailed to shareholders.
Notice and Access, electronic delivery and the ability to opt out of receiving the annual report by mail, provides increased convenience to shareholders, benefits to the environment and reduced mailing and printing costs for the company.
TransCanada in the Community    TransCanada's annual Corporate Responsibility Report is available at www.transcanada.com. If you would like to receive a copy of this report by mail, please contact:
Communications    450 1st Street SW, Calgary, Alberta T2P 5H1, 1.403.920.2000 or 1.800.661.3805 or Communications@transcanada.com
Visit our website at www.transcanada.com to access TransCanada's corporate and financial information, including quarterly reports, news releases, real-time conference call webcasts and investor presentations.
Si vous désirez vous procurer un exemplaire de ce rapport en français, veuillez consulter notre site web ou vous adresser par écrit à TransCanada Corporation, bureau du secrétaire.


200
TransCanada Corporation 2016
 



Board of directors
(as at December 31, 2016)
S. Barry Jackson1,2
Chairman
TransCanada Corporation
Calgary, Alberta

Russell K. Girling
President and CEO
TransCanada Corporation
Calgary, Alberta

Kevin E. Benson1,4
Corporate Director
Calgary, Alberta

Derek H. Burney, O.C.4,7
Senior Strategic Advisor
Norton Rose Canada LLP
Ottawa, Ontario
 
John E. Lowe4,5
Chairman
Apache Corporation
Houston, Texas

Paula Rosput Reynolds5,8
President and CEO
PreferWest LLC
Seattle, Washington

John Richels2,5
Corporate Director
Toronto, Ontario

Mary Pat Salomone4,5
Corporate Director
Naples, FL
 
Indira V. Samarasekera1,4
Senior Advisor
Bennett Jones LLP
Vancouver, British Columbia

D. Michael G. Stewart4,6
Corporate Director
Calgary, Alberta

Siim A. Vanaselja1,3
Corporate Director
Westmount, Québec

Richard E. Waugh1,2
Corporate Director
Toronto, Ontario
1
Member, Governance Committee
2
Member, Human Resources Committee
3
Chair, Audit Committee
4
Member, Audit Committee
5
Member, Health, Safety & Environment Committee
6
Chair, Health, Safety & Environment Committee
7
Chair, Governance Committee
8
Chair, Human Resources Committee

 
TransCanada Corporation 2016
201


Corporate governance
Please refer to TransCanada's Notice of 2017 annual meeting of shareholders and Management information circular for the company's statement of corporate governance.
TransCanada's Corporate Governance Guidelines, Board charter, Committee charters, Chair and Chief Executive Officer terms of reference and code of business ethics are available on our website at www.transcanada.com. Also available on our website is a summary of the significant ways in which TransCanada's corporate governance practices differ from those required to be followed by U.S. domestic companies under the New York Stock Exchange's listing standards.
Additional information relating to the company is filed with securities regulators in Canada on SEDAR (www.sedar.com) and in the United States on EDGAR (www.sec.gov). The documents referred to in this Annual Report may be obtained free of charge by contacting TransCanada's Corporate Secretary at 450 1st Street SW, Calgary, Alberta, Canada T2P 5H1, or by calling 1.800.661.3805.
Ethics Help-Line The Audit Committee of the Board of Directors has established an anonymous and confidential toll-free telephone number for employees, contractors and others to call with respect to accounting irregularities and ethical violations. The Ethics Help-Line number is 1.888.920.2042.


202
TransCanada Corporation 2016