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## a) Foreign Exchange 

The company held the following foreign exchange contracts with notional amounts at December 31, 2013 and December 31, 2012: 

<img src='content_image/140123.jpg'>

Included in net income are unrealized net gains on foreign currency derivative contracts amounting to $48 million (2012 – net loss of $2 million) and included in the cumulative translation adjustment account in other comprehensive income are losses in respect of foreign currency contracts entered into for hedging purposes amounting to $71 million (2012 – net losses of $45 million). 

## b) Interest Rates 

At December 31, 2013, the company held interest rate swap contracts having an aggregate notional amount of $600 million (2012 – $1,351 million), and interest rate swaptions with an aggregate notional amount of $1,704 million (2012 – $263 million). The company’s subsidiaries held interest rate swap contracts with an aggregate notional amount of $8,654 million (2012 – $11,636 million), interest rate cap contracts with an aggregate notional amount of $5,799 million (2012 – $4,951 million), and bond forwards with an aggregate notional value of $nil (2012 – $471 million). 

## c) Credit Default Swaps 

As at December 31, 2013, the company held credit default swap contracts with an aggregate notional amount of $800 million (2012 – $865 million). Credit default swaps are contracts which are designed to compensate the purchaser for any change in the value of an underlying reference asset, based on measurement in credit spreads, upon the occurrence of pre-determined credit events. The company is entitled to receive payments in the event of a pre-determined credit event for up to $800 million (2012 – $815 million) of the notional amount and could be required to make payments in respect of $nil (2012 – $50 million) of the notional amount. 

## d) Equity Derivatives 

At December 31, 2013, the company and its subsidiaries held equity derivatives with a notional amount of $1,633 million (2012 – $1,112 million) which includes $765 million (2012 – $600 million) notional amount that hedges long-term compensation arrangements. The balance represents common equity positions established in connection with the company’s investment activities. The fair value of these instruments was reflected in the company’s Consolidated Financial Statements at year end. 

## e) Commodity Instruments 

The company has entered into energy derivative contracts primarily to hedge the sale of generated power. The company endeavours to link forward electricity sale derivatives to specific periods in which it expects to generate electricity for sale. All energy derivative contracts are recorded at an amount equal to fair value and are reflected in the company’s Consolidated Financial Statements. 

