CONSOLIDATED FINANCIAL STATEMENTS CONSOLIDATED BALANCE SHEETS (continued) At December 31, 2013 and 2012 See accompanying notes to Consolidated Financial Statements. On behalf of the Board of Directors: 52 HYDRO ONE ANNUAL REPORT 2013 James Arnett Chair  Michael J. Mueller Chair, Audit and Finance Committee December 31 (millions of Canadian dollars, except number of shares) 2013 2012 Liabilities Current liabilities:  Bank indebtedness  (Note 13) 31 42 Accounts payable 62 140 Accrued liabilities  (Notes 7, 15, 16) 733 578 Due to related parties  (Note 20) 230 261 Accrued interest  100 95 Regulatory liabilities  (Note 11) 85 40 Long-term debt payable within one year (includes $506 measured at fair value; 2012 – $0)  (Notes 12, 13) 756 600 1,997 1,756 Long-term debt (includes $256 measured at fair value; 2012 – $769)  (Notes 12, 13) 8,301 7,879 Other long-term liabilities:  Post-retirement and post-employment benefit liability  (Note 15) 1,488 1,416 Deferred income tax liabilities  (Note 7) 1,129 944 Pension benefit liability  (Note 15) 845 1,515 Environmental liabilities  (Note 16) 239 227 Regulatory liabilities  (Note 11) 163 181 Net unamortized debt premiums  20 23 Asset retirement obligations  (Note 17) 14 15 Long-term accounts payable and other liabilities 14 25 3,912 4,346 Total liabilities 14,210 13,981 Contingencies and commitments (Notes 22, 23) Preferred shares (authorized: unlimited; issued: 12,920,000)  (Notes 18, 19) 323 323 Shareholder’s equity Common shares (authorized: unlimited; issued: 100,000)  (Notes 18, 19) 3,314 3,314 Retained earnings  3,787 3,202 Accumulated other comprehensive loss  (9) (9) Total shareholder’s equity 7,092 6,507 Total liabilities, preferred shares and shareholder’s equity 21,625 20,811