Page 110 - Suncor AR English
P. 110
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
development uncertainty. In addition, the company also recognized an after-tax impairment charge of $63 million related
to certain natural gas properties due to a decline in price forecasts.
Oil Sands
Voyageur Upgrader Project
In the fourth quarter of 2012, the company recognized after-tax impairment charges of $1.487 billion related to its 51%
interest in the Voyageur upgrader project. As a result of the challenging economic outlook for the Voyageur upgrader, an
impairment test was performed at December 31, 2012, using a fair value less costs of disposal methodology. A
risk-adjusted discount rate of 10% was used to perform the calculation.
11. FINANCING EXPENSES
($ millions)
2013 2012
(restated –
note 6)
703 640 Interest on debt and finance leases
.......................................................................................................................................................................................................................................................
Capitalized interest at 6.1% (2012 – 6.0%) (397) (587)
Interest expense 306 53
.......................................................................................................................................................................................................................................................
Interest on pension and other post-retirement benefits 68 79
.......................................................................................................................................................................................................................................................
Accretion 192 182
.......................................................................................................................................................................................................................................................
Foreign exchange loss (gain) on U.S. dollar denominated debt 605 (181)
.......................................................................................................................................................................................................................................................
Foreign exchange and other
(9) 9
1 162 142
12. INCOME TAXES
Income Tax Expense
($ millions)
2013 2012
(restated –
note 6)
Current:
.......................................................................................................................................................................................................................................................
Current year 2 093 1 483
.......................................................................................................................................................................................................................................................
Adjustments for prior years (10) 32
.......................................................................................................................................................................................................................................................
Deferred:
.......................................................................................................................................................................................................................................................
Origination and reversal of temporary differences 410 687
.......................................................................................................................................................................................................................................................
Adjustments for prior years (28) (46)
.......................................................................................................................................................................................................................................................
Changes in tax rates and legislation — 88
2 465 2 244
There was no income tax recognized directly in equity during 2013 and 2012.
106 SUNCOR ENERGY INC. ANNUAL REPORT 2013
