NOTES TO CONSOLIDATED FINANCIAL STATEMENTS CONDENSED BALANCE SHEET 8 December 31  (millions of dollars) 2001 2000 Current assets 1,053 1,767 Current assets of discontinued operations 113 3,466 Unrealized gains on energy trading contracts 365 379 Long-term investments 1,434 1,354 Plant, property and equipment 15,391 15,248 Regulatory asset 9 2,613 3,670 Other assets 210 103 Long-term assets of discontinued operations 212 1,197 21,391 27,184 Current liabilities 10 1,731 2,102 Provision for loss on discontinued operations 264 76 Current liabilities of discontinued operations 116 3,877 Unrealized losses on energy trading contracts 112 170 Deferred amounts 437 328 Long-term debt 9,512 9,928 Deferred income taxes 9 2,555 3,412 Preferred securities 11 694 994 Trust originated preferred securities 218 218 Long-term liabilities of discontinued operations 9 528 Shareholders’ equity 5,743 5,551 21,391 27,184 7 Under U.S. GAAP, a net loss recognized pursuant to SFAS No. 87 "Employers’ Accounting for Pensions" as an additional pension liability not yet recognized as net period pension cost, must be recorded as a component of comprehensive income. 8 In accordance with U.S. GAAP, the condensed Statement of Consolidated Income and Balance Sheet are prepared using the equity method of accounting for joint ven- tures. Excluding the impact of other U.S. GAAP adjustments, the use of the proportionate consolidation method of accounting for joint ventures, as required under Canadian GAAP, results in the same net income and Shareholders' Equity. 9 Under U.S. GAAP, the Company is required to record a deferred income tax liability for its cost-of-service regulated businesses. As these deferred income taxes are recover- able through future revenues, a corresponding regulatory asset is recorded for U.S. GAAP purposes. 10 Current liabilities include dividends payable of $114 million (2000 – $103 million) and current taxes payable of $149 million (2000 – $169 million). 11 Under U.S. GAAP, the Preferred Securities are classified as a liability. The fair value of the Preferred Securities at December 31, 2001 is $740 million (2000 – $974 million). INCOME TAXES The tax effects of differences between the accounting value and the tax value of assets and liabilities are as follows. December 31  (millions of dollars) 2001 2000 Deferred Tax Liabilities Accelerated tax depreciation on plant and equipment 1,722 2,030 Taxes on future revenue requirement 897 1,610 Undistributed earnings of subsidiaries and joint ventures 318 250 Other 14 38 2,951 3,928 Deferred Tax Assets Net operating and capital loss carryforwards 180 292 Deferred amounts 140 155 Other 101 94 421 541 Less: Valuation allowance 25 25 396 516 Net deferred tax liabilities 2,555 3,412 2001 ANNUAL REPORT  65