Company: ENBSF
Filing Date: 2025-02-14
Form Type: 10-K
Source: 0000895728-25-000006
Chunk: 82

Company: ENBRIDGE INC
Filing Date: 2025-02-14
Form: 10-K
Item: Item 8
Chunk 82
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. Amounts included in contract assets are transferred to accounts receivable when our right to the consideration becomes unconditional.Contract liabilities represent payments received for performance obligations which have not been fulfilled. Contract liabilities primarily relate to make-up rights and deferred revenue. Revenue recognized during the year ended December 31, 2024 included in contract liabilities at the beginning of the year is $372 million. Increases in contract liabilities from cash received, net of amounts recognized as revenue during the year ended December 31, 2024, were $532 million.Performance ObligationsSegmentNature of Performance ObligationLiquids Pipelines•Transportation and storage of crude oil and natural gas liquids (NGL)Gas Transmission•Transportation, storage, gathering, compression and treating of natural gas•Transportation of crude oil and NGL•Sale of renewable natural gas and its attached environmental attributesGas Distribution and Storage•Supply and delivery of natural gas•Transportation of natural gas•Storage of natural gasRenewable Power Generation•Generation and transmission of electricity•Delivery of electricity from renewable energy generation facilitiesThere was no material revenue recognized during the year ended December 31, 2024 from performance obligations satisfied in previous periods.Payment TermsPayments are received monthly from customers under long-term transportation, commodity sales, and gas gathering and processing contracts. Payments from Gas Distribution and Storage customers are received on a continuous basis based on established billing cycles.Certain contracts in our US offshore business provide for us to receive a series of fixed monthly payments (FMPs) for a specified period that is less than the period during which the performance obligations are satisfied. As a result, a portion of the FMPs are recorded as contract liabilities. The FMPs are not considered to be a financing arrangement as payments are scheduled to match the production profiles of offshore oil and gas fields, which generate greater revenue in the initial years of their productive lives.

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Revenue to be Recognized from Unfulfilled Performance ObligationsThe following table presents our estimated revenue allocated to remaining performance obligations for contracted revenue that has not yet been recognized, that is expected to be recognized in the following periods:Total1 year2-5 yearsThereafter(billions of Canadian dollars)Expected revenue62.6 10.4 25.2 27.0 The revenues excluded from the amounts above based on optional exemptions available under Accounting Standards Codification (ASC) 606, as explained below, represent a significant portion of our overall revenues and revenues from contracts with customers. Certain revenues such as flow-through operating costs