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11) Tax Expense
Three Months Ended March 31($ millions) 2013 2012----------------------------------------------------------------------------Current tax expense $ 90 $ -Deferred tax expense (recovery) (22) 99----------------------------------------------------------------------------Total tax expense $ 68 $ 99--------------------------------------------------------------------------------------------------------------------------------------------------------
12) Capital Management
The Corporation's capital consists of cash and cash equivalents, debt and Shareholders' equity. The balance of each of these items at March 31, 2013 and December 31, 2012 was as follows:
December March 31 31($ millions, except % amounts) 2013 2012----------------------------------------------------------------------------Long-term debt(1,2) $ 1,832 $ 1,794Cash and cash equivalents (1,471) (1,553)----------------------------------------------------------------------------Net debt(1,3) $ 361 $ 241--------------------------------------------------------------------------------------------------------------------------------------------------------Shareholders' equity $ 4,537 $ 4,515--------------------------------------------------------------------------------------------------------------------------------------------------------Total net capitalization(1,4) $ 4,898 $ 4,756--------------------------------------------------------------------------------------------------------------------------------------------------------Total capitalization(1,5) $ 6,369 $ 6,309--------------------------------------------------------------------------------------------------------------------------------------------------------Net debt-to-total net capitalization(1,6)(%) 7 5--------------------------------------------------------------------------------------------------------------------------------------------------------Long-term debt-to-total capitalization(1,7)(%) 29 28--------------------------------------------------------------------------------------------------------------------------------------------------------(1) Additional GAAP financial measure.(2) Includes current and non-current portions of long-term debt.(3) Long-term debt less cash and cash equivalents.(4) Net debt plus Shareholders' equity.(5) Long-term debt plus Shareholders' equity.(6) Net debt divided by total net capitalization.(7) Long-term debt divided by total capitalization.
Net debt, comprised of current and non-current portions of long-term debt less cash and cash equivalents, increased to $361 million at March 31, 2013 from $241 million at December 31, 2012, as existing cash balances were used to fund capital expenditures and dividend payments in excess of cash flow from operations. As a result, net debt-to-total net capitalization increased to seven per cent at March 31, 2013 from five per cent at December 31, 2012.
