Document


SECURITIES AND EXCHANGE COMMISSION
Washington, D.C.  20549
 
FORM 11-K
 
 
þ
ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
 
For the fiscal year ended December 31, 2018.
 
OR
 
¨
TRANSITION REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
 
For the transition period from __________ to __________
 
 
Commission File No. 1-31690
 
A.
Full title of the plan and the address of the plan, if different from that of the issuer named below:
 
TransCanada 401(k) and Savings Plan
TransCanada USA Services Inc., 700 Louisiana Street, Suite 700
Houston, Texas 77002-2700
 
 
B.  
Name of issuer of the securities held pursuant to the plan and the address of its principal executive office:
 
TransCanada Corporation
450 – 1 Street S.W., Calgary, Alberta, T2P 5H1, Canada








TRANSCANADA 401(k) AND SAVINGS PLAN
 
TABLE OF CONTENTS


REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
 
 
FINANCIAL STATEMENTS
 
 
 
Statements of Net Assets Available for Benefits as of December 31, 2018 and 2017
 
 
Statement of Changes in Net Assets Available for Benefits for the year ended December 31, 2018
 
 
Notes to Financial Statements December 31, 2018 and 2017
 
 
SUPPLEMENTAL SCHEDULE
 
 
 
Schedule H, Part IV, Line 4i – Schedule of Assets (Held at End of Year) as of December 31, 2018
 
 
EXHIBIT INDEX
 
 
Exhibit 23.1 Consent of Independent Registered Public Accounting Firm
 
 
 
SIGNATURE 
 
 
 
All other schedules required by 29 CFR  2520.103-10 of the Department of Labor’s Rules and Regulations for Reporting and Disclosure under the Employee Retirement Income Security Act of 1974 have been omitted because they are not applicable.





Report of Independent Registered Public Accounting Firm

To the Plan Administrator and Plan participants of TransCanada 401(k) and Savings Plan:
Opinion on the Financial Statements
We have audited the accompanying statements of net assets available for benefits of the TransCanada 401(k) and Savings Plan (the Plan) as of December 31, 2018 and 2017, and the related statement of changes in net assets available for benefits for the year ended December 31, 2018, and the related notes and supplemental schedule (collectively referred to as the financial statements). In our opinion, the financial statements present fairly, in all material respects, the net assets available for benefits of the Plan as of December 31, 2018 and 2017, and the changes in net assets available for benefits for the year ended December 31, 2018, in conformity with accounting principles generally accepted in the United States of America.

Basis for Opinion

These financial statements are the responsibility of the Plan’s management. Our responsibility is to express an opinion on the Plan’s financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Plan in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud.

Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.

Supplemental Information

The supplemental Schedule of Assets (Held at End of Year) as of December 31, 2018 has been subjected to audit procedures performed in conjunction with the audit of the Plan’s financial statements. The supplemental information is the responsibility of the Plan’s management. Our audit procedures included determining whether the supplemental information reconciles to the financial statements or the underlying accounting and other records, as applicable, and performing procedures to test the completeness and accuracy of the information presented in the supplemental information. In forming our opinion on the supplemental information, we evaluated whether the supplemental information, including its form and content, is presented in conformity with the Department of Labor's Rules and Regulations for Reporting and Disclosure under the Employee Retirement Income Security Act of 1974. In our opinion, the supplemental information is fairly stated, in all material respects, in relation to the financial statements as a whole.

/s/ Caron & Bletzer, PLLC

We have served as the Plan’s auditor since 2016
Kingston, NH
June 19, 2019


1



TRANSCANADA 401(k) AND SAVINGS PLAN
 
STATEMENTS OF NET ASSETS AVAILABLE FOR BENEFITS
 
 
December 31 (thousands of U.S. dollars)
 
2018

 
2017

Assets
 
 
 
 

Non-interest bearing cash
 
64

 

Investments at fair value (Note 3)
 
666,378

 
683,209

Notes receivable from participants
 
11,191

 
10,694

Employer contribution receivable
 
773

 
475

Other receivables (Note 4)
 
12

 
23,307

 
 
678,418

 
717,685

Liabilities
 
 
 
 
Accrued management fees
 
52

 

Net Assets Available for Benefits
 
678,366

 
717,685

 
The accompanying notes to the financial statements are an integral part of these statements.


2



TRANSCANADA 401(k) AND SAVINGS PLAN
 
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS
 
 
Year ended December 31 (thousands of U.S. dollars)
 
2018

Additions
 
 
Contributions
 
 
Employee contributions
 
33,622

Employer contributions
 
29,682

Employee rollovers
 
5,068

 
 
68,372

Investment Income
 
 
Net depreciation in fair value of investments (Note 3)
 
(55,995
)
Interest and dividend income
 
15,855

 
 
(40,140
)
Interest on notes receivable from participants
 
511

Other revenue
 
37

Total Net Additions
 
28,780

Deductions
 
 
Benefits paid to participants
 
68,044

Administrative expenses
 
56

Total Deductions
 
68,100

Decrease in Net Assets Available for Benefits before plan transfers
 
(39,320
)
Transfer in from related plans
 
1

Decrease in Net Assets Available for Benefits
 
(39,319
)
Net Assets Available for Benefits
 
 
Beginning of Year
 
717,685

End of Year
 
678,366

    
The accompanying notes to the financial statements are an integral part of these statements.


3



TRANSCANADA 401(k) AND SAVINGS PLAN
 
NOTES TO FINANCIAL STATEMENTS
December 31, 2018 and 2017

NOTE 1:                 DESCRIPTION OF PLAN
 
The TransCanada 401(k) and Savings Plan (the Plan) is a defined contribution plan that provides retirement benefits for employees of TransCanada USA Services Inc. (TCUSA or the Company) or its subsidiaries not covered by a collective bargaining agreement, unless participation is required by the agreement. The Plan excludes employees hired under the Company’s student program, until they reach age 21 and have completed at least 1,000 hours of service, special project employees, non-resident persons with no income from a United States source and non-resident persons who have been non-residents for a period of 183 days or more, unless the employee remains on the Company's payroll. The Plan is subject to the provisions of the Employee Retirement Income Security Act of 1974, as amended (ERISA).
 
On April 1, 2017, employees of Columbia Pipeline Group, Inc. were transferred to become employees of TC USA and the Plan was amended to exclude the transferred employees from participating in the Plan. The Columbia Pipeline Group 401(k) Savings Plan (the Columbia 401(k) Plan) was also amended to provide for continued participation by the transferred employees under the Columbia 401(k) Plan. On December 31, 2017, the Columbia 401(k) Plan was merged into the Plan.

On December 31, 2017, the TransCanada 401(k) and Savings IBEW 1245 Plan was also merged into the Plan.

The Board of Directors of TCUSA (the Board) has appointed the TransCanada USA Investment Committee and TransCanada USA Benefits Committee as the plan administrators and fiduciaries of the Plan. The Board has also appointed Fidelity Management Trust Company (Fidelity or the Trustee) as custodian and trustee of the Plan’s assets. Fidelity Investments Institutional Operations Company serves as the recordkeeper for the Plan.
 
Employee and Employer Contributions
 
Each year, participants may elect to defer a percentage of their eligible compensation into the Plan subject to an annual limit of the lesser of 60 per cent of their eligible compensation or $18,500 (2017 - $18,000) (the Deferral Limit), subject to certain limitations under the Internal Revenue Code of 1986, as amended (the Code). Participants age 50 or older who are making deferral contributions may also make catch-up contributions of up to $6,000. Subject to the Deferral Limit, eligible employees may contribute up to 100 per cent of bonuses designated by the Company. The Company will match 100 per cent of each participant’s contributions up to a maximum of five per cent of the participant’s eligible compensation for the Plan year.

The Company will also make annual enhanced profit sharing contributions in an amount equal to seven per cent of a participant’s base salary, if the participant has elected, or is deemed to have elected, not to accrue credited service under the TransCanada USA Services Inc. Retirement Plan. Collectively bargained employees may be eligible for a different match and/or enhanced profit sharing contribution as defined in their collective bargaining agreement. In 2018, the Company made enhanced contributions of $12 million. Participants may also contribute amounts transferred to the Plan from another qualified plan at the participant’s request (rollover).

A discretionary profit sharing contribution in the amount of $1,537,000 from the 2017 plan year of the former Columbia 401(k) Plan was authorized on March 9, 2018 and included in the 2018 employer contributions to the Plan.
 
Participant Accounts
 
Each participant’s account is credited with the participant’s and Company’s contributions and an allocation of Plan earnings. Earnings are allocated from a particular fund based on the ratio of a participant’s account invested in the fund to all participants’ investments in that fund.
 

4



Participants are responsible for investment decisions relating to the investment of assets in their account. The Trustee carries out all investing transactions on behalf of the participant. In the event investment instructions are not received from the participant, contributions are allocated to the Plan's qualified default option, the Vanguard Target Retirement funds, based upon the participant's expected retirement date.
 
Investment in TransCanada Corporation
 
Investment options available to participants includes a TransCanada Corporation (TransCanada) stock fund (the TransCanada Stock Fund). TransCanada is the indirect parent company to TCUSA. Participants may elect to invest up to 10 per cent of contributions in the TransCanada Stock Fund. Participants may elect to exchange up to 10 per cent of their existing account balance into the TransCanada Stock Fund, subject to a 10 per cent maximum account value. Additionally, no more than 10 per cent of any rollover contribution can be invested in the TransCanada Stock Fund.

Vesting

Participants are immediately vested in their contributions, including rollovers, employer contributions and any earnings thereon.
 
Notes Receivable from Participants
 
Participants may borrow from their fund accounts a minimum of $1,000 up to a maximum equal to the lesser of $50,000 reduced by the highest outstanding note balance in their account during the prior 12 month period or 50 per cent of their vested account balance. Note terms range from one to five years for general notes or up to 15 years for the purchase of a primary residence. The notes are secured by the balance in the participant’s account and bear interest at a reasonable interest rate, as determined by the Plan Administrator, based on prevailing market interest rates at the time. Interest rates remain fixed throughout the duration of the term. Interest rates on notes outstanding at December 31, 2018 ranged from 3.25 per cent to 8.25 per cent (2017 - 3.25 per cent to 8.25 per cent).  Principal and interest are paid through payroll deductions.
 
A note receivable from a participant shall be considered in default if any scheduled repayment remains unpaid as of the last business day of the calendar quarter following the calendar quarter in which the note is initially considered past due. In the event of a default or termination of employment the entire outstanding note and accrued interest is considered to be a deemed distribution to the participant.
 
Payment of Benefits
 
Participants are eligible to request a distribution of their vested amounts upon retirement, death, total and permanent disability, severance of employment with the Company or, in very limited circumstances, in the event of financial hardship. Distributions are made in the form of a lump-sum payment, installment payments or a rollover to another qualified account.
 
A participant’s normal retirement age is 65, however, participants may elect to withdraw all or a portion of their contributions after the age of 59½, subject to certain conditions. 
 
In certain circumstances, participants may elect to withdraw all or a portion of their vested matching and profit sharing contributions that have been in their account for at least 24 months or after they have at least 60 months of participation in the Plan.
 
Forfeitures
 
As participants are immediately 100 per cent vested in their account balance, there are no forfeitures.



5




Administrative Expenses
 
The Plan Administrator is responsible for filing all required reports on behalf of the Plan. The Company provides or pays for certain accounting, legal and management services on behalf of the Plan. The Company has not charged the Plan for these expenses or services. Loans and other transaction specific fees are charged to the accounts of participants electing such transaction. Certain investment related expenses, including management fees, are deducted from the mutual funds in which the Plan invests, including those sponsored by an affiliate of Fidelity. These expenses are presented as a reduction of investment income.

Plan Termination

Although it has not expressed any intent to do so, with approval from its Board of Directors, the Company has the right under the Plan to discontinue contributions at any time and to terminate the Plan, subject to the provisions of ERISA.
 
NOTE 2:                SUMMARY OF ACCOUNTING POLICIES
  
Basis of Accounting
 
The financial statements of the Plan are presented on an accrual basis of accounting in accordance with U.S. generally accepted accounting principles.
 
Use of Estimates
 
The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, and changes therein, and disclosure of contingent assets and liabilities. Actual results could differ from these estimates.
 
Investment Valuation and Income Recognition
 
The Plan’s investments are stated at fair value. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. See Note 3 for discussion of fair value measurements.
 
Interest income is recorded on the accrual basis and dividends are recorded on the ex-dividend date.
 
Net (Depreciation)/Appreciation in Fair Value of Investments consists of: (1) the unrealized gains or losses on investments held during the year and (2) the realized gains or losses recognized on the sale of investments during the year. Realized gains and losses from security transactions are reported on the average cost basis.
 
Purchases and sales of securities are recorded on a trade-date basis.
 
Notes Receivable from Participants
 
Notes Receivable from Participants includes the unpaid principal balance plus any accrued interest. Defaulted notes receivable from participants are recorded as a distribution based upon the terms of the plan document.
 
Other Revenue

The agreement between the Trustee and the Plan includes a revenue sharing arrangement whereby the Trustee shares revenue generated by the Plan that was paid from the mutual fund holdings sponsored by an affiliate of the Trustee. These deposits are included in the other revenue amount in the statement of changes in net assets available for benefits. The funds can be used to pay plan expenses or be allocated to participants. Income from revenue sharing during 2018 was $37,037 of which $37,092 (2017 - $20) remains available at December 31, 2018 for allocation to participants or to offset future plan expenses.

6




Payment of Benefits
 
Benefits are recorded when paid.

 Recently Issued Pronouncements

In August 2018, the FASB issued new guidance which amends and clarifies disclosure requirements related to defined benefit pension and other post-retirement benefit plans. This new guidance is effective January 1, 2020 and will be applied on a retrospective basis, however, early adoption is permitted. The Company is currently evaluating the timing and impact of the adoption of this guidance and has not yet determined the effect on the Plan financial statements.

NOTE 3:                 INVESTMENTS
 
Participants direct the investment of their account balances into a broad range of investment securities offered by the Plan.  Investment securities are exposed to various risks, such as counterparty credit risk, liquidity risk and market risk. Due to the level of risk associated with certain investment securities and the level of uncertainty related to changes in value of these investments, it is reasonably possible that changes in the values of investment securities may occur in the near term and that such changes could materially affect participant account balances and the amounts reported in the financial statements.

The Plan offers alternatives that may mitigate participant risks, including the opportunity to diversify investments across multiple participant-directed fund elections including active and passively managed funds covering multiple asset classes. Additionally, the investments within each participant-directed fund election are further diversified into various financial instruments, with the exception of the TransCanada Stock Fund, which invests in securities of a single issuer.
 
The Plan’s exposure to credit loss in the event of nonperformance of investments is limited to the carrying value of such instruments. The Plan’s concentrations of credit risk, interest rate risk and market risk are dictated by the Plan’s provisions as well as those of ERISA and the participants’ investment preference.
 
Fair Value Hierarchy
 
The Plan’s financial assets and liabilities recorded at fair value have been categorized into three levels based on a fair value hierarchy. In Level I, the fair value of assets and liabilities is determined by reference to quoted prices in active markets for identical assets and liabilities. In Level II, determination of the fair value of assets and liabilities includes valuations using inputs, other than quoted prices, for which all significant inputs are observable, directly or indirectly. This category includes fair value determined using valuation techniques, such as option pricing models and extrapolation using observable inputs. In Level III, determination of the fair value of assets and liabilities is based on inputs that are not readily observable and are significant to the overall fair value measurement.  There were no Level II or Level III investments or transfers between levels in 2018 or 2017.
 
Interest bearing cash: Stated at cost which approximates fair value.

Common stock: Valued at the closing price reported on the New York Stock Exchange.
 
Mutual funds: Valued at the daily closing price reported by the fund. Mutual funds held by the Plan are open end mutual funds that are registered with the Securities and Exchange Commission. These funds are required to publish their daily net asset value and transact at that price. The mutual funds held by the Plan are deemed to be actively traded.

Common collective trusts: Common collective trusts hold underlying investments that have prices which are derived from quoted prices in active markets. The fair value of the Plan's interest in these funds is based on the funds' daily NAV (net asset value), which is considered to be the best approximation of fair value. The funds’ underlying assets are principally short-term money market funds, marketable equities and fixed income securities. Units held in common

7



collective trusts are valued at the unit value as reported by the investment managers as of December 31, 2018. Redemptions of the common collective trust held by the Plan are allowed daily for participants; however, the Plan is subject to a twelve-month redemption notice period. There are no unfunded commitments.

The method described above for common collective trusts may produce a fair value calculation that may not be indicative of net realizable value or reflective of future fair values. Furthermore, while the Plan’s valuation methods are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different estimate of fair value at the reporting date.

The following tables set forth, by level within the fair value hierarchy, the Plan’s investment assets at fair value as of December 31, 2018 and 2017.  As required, assets and liabilities are  classified in their entirety based on the lowest level of input that is significant to the fair value measurement:

 
 
Fair Value Measurements at December 31, 2018
(thousands of U.S. dollars)
 
Total
 
Level 1
Level 2
Level 3
 
 
 
 
 
 
 
Interest bearing cash
 
414

 
414



Mutual funds
 
551,180

 
551,180



Common collective trusts
 
86,641

 



Common stock
 
21,325

 
21,325



TransCanada common stock
 
6,818

 
6,818



Total
 
666,378

 
579,737




 
 
Fair Value Measurements at December 31, 2017
(thousands of U.S. dollars)
 
Total
 
Level 1
Level 2
Level 3
 
 
 
 
 
 
 
Mutual funds
 
588,670

 
588,670



Common collective trusts
 
86,474

 



TransCanada common stock
 
8,065

 
8,065



Total
 
683,209

 
596,735




Net Depreciation in Fair Value of Investments
 
Net depreciation in fair value of investments by major category (including investments purchased, sold and held during the year) was as follows:
Year ended December 31 (thousands of U.S. dollars)
 
2018

 
 
 
Mutual funds
 
(50,131
)
Common collective trusts
 
(3,770
)
TransCanada common stock
 
(2,333
)
Common stock and other
 
239

Net Depreciation in Fair Value of Investments
 
(55,995
)


8



NOTE 4:                 OTHER RECEIVABLES

Other receivables consist of non-monetary balances from an investment account separately managed specifically for the Plan by Baron Capital. The underlying investments of the account are deemed to be self directed because participants are allowed to invest or redeem their funds on a daily basis. Baron Capital deploys the funds in U.S. mid-cap securities, which are valued at the last sale reported on the exchange in which the securities are principally traded.

NOTE 5:                 INCOME TAXES
 
Effective December 15, 2009, the Plan was restated to a volume submitter plan. The volume submitter plan sponsor obtained an advisory opinion on March 31, 2014 in which the Internal Revenue Service stated that the Plan, as then designed, was in compliance with the applicable requirements of the Code.  The Plan Administrator believes that the Plan is designed and is currently being operated in compliance with the applicable requirements of the Code. The Plan is exempt from federal income taxes. Accordingly, no provision for federal income taxes has been made in the accompanying financial statements.

The Plan Administrator has analyzed any income tax assets and liabilities of the Plan and has concluded that as of December 31, 2018 and 2017, there are no uncertain income tax positions taken or expected to be taken that would require recognition of a liability or asset, or disclosure in the financial statements. The Plan is subject to audits by taxing jurisdictions, however, there are currently no audits in progress for any tax periods. The Plan Administrator believes it is no longer subject to income tax examinations for years prior to 2014.

NOTE 6:                 PARTY-IN-INTEREST AND RELATED PARTY TRANSACTIONS
 
Certain Plan investments are shares of mutual funds managed by an affiliate of Fidelity, the Trustee; therefore, these investments qualify as party-in-interest transactions.
 
At December 31, 2018 Plan investments included $6,812,676 (2017 – $8,063,488) of TransCanada common stock and $5,511 (2017$1,863) in a stock purchase account. Transactions involving these investments are permitted party-in-interest transactions.

NOTE 7:                 SUBSEQUENT EVENTS
 
The Plan has evaluated subsequent events through the date these financial statements were issued.






9



 TRANSCANADA 401(k) AND SAVINGS PLAN
 EIN #:  98-0460263
PLAN #:  001

SCHEDULE H, PART IV, LINE 4i – SCHEDULE OF ASSETS (HELD AT END OF YEAR)
AS OF DECEMBER 31, 2018

(a)
(b)
Identity of Issue, Borrower,
Lessor or Similar Party
 
(c)
Description of Investment
 
(d)
Cost of Investment**
 
(e)
Current Value
 
 
 
 
 
 
 
 
 
Interest Bearing Cash
 
Cash
 
 
 
$
413,889

 
 
 
 
 
 
 
 
 
Gartner, Inc.
 
Common Stock
 
 
 
1,408,285

 
IDEXX Laboratories, Inc.
 
Common Stock
 
 
 
1,292,266

 
Mettler-Toledo International, Inc.
 
Common Stock
 
 
 
964,879

 
Verisk Analytics, Inc.
 
Common Stock
 
 
 
960,424

 
Vail Resorts, Inc.
 
Common Stock
 
 
 
957,544

 
Guidewire Software, Inc.
 
Common Stock
 
 
 
713,566

 
Verisign, Inc.
 
Common Stock
 
 
 
673,533

 
Illumina, Inc.
 
Common Stock
 
 
 
645,149

 
The Charles Schwab Corp.
 
Common Stock
 
 
 
631,090

 
FactSet Research Systems, Inc.
 
Common Stock
 
 
 
570,170

 
ANSYS, Inc.
 
Common Stock
 
 
 
547,031

 
SBA Communications Corp.
 
Common Stock
 
 
 
531,323

 
TransUnion
 
Common Stock
 
 
 
491,206

 
CoStar Group, Inc.
 
Common Stock
 
 
 
479,697

 
Arch Capital Group Ltd.
 
Common Stock
 
 
 
452,370

 
Roper Technologies Inc.
 
Common Stock
 
 
 
451,751

 
West Pharmaceutical Services, Inc.
 
Common Stock
 
 
 
422,411

 
Worldpay, Inc.
 
Common Stock
 
 
 
406,073

 
Bio-Techne Corporation
 
Common Stock
 
 
 
401,164

 
Willis Towers Watson Public Limited Company
 
Common Stock
 
 
 
384,661

 
IDEX Corporation
 
Common Stock
 
 
 
381,179

 
Teleflex Incorporated
 
Common Stock
 
 
 
377,122

 
MarketAxess Holdings Inc.
 
Common Stock
 
 
 
361,551

 
Booking Holdings Inc
 
Common Stock
 
 
 
318,648

 
CBRE Group, Inc.
 
Common Stock
 
 
 
313,433

 
Equinix, Inc.
 
Common Stock
 
 
 
308,490

 
SS&C Technologies Holdings, Inc.
 
Common Stock
 
 
 
305,530

 
First Republic Bank
 
Common Stock
 
 
 
298,067

 
The Cooper Companies, Inc.
 
Common Stock
 
 
 
286,567

 
Veeva Systems Inc. Cl - A
 
Common Stock
 
 
 
285,377

 
FleetCor Technologies, Inc.
 
Common Stock
 
 
 
276,351

 
Ceridian HCM Holding Inc.
 
Common Stock
 
 
 
258,399

 
Choice Hotels International, Inc.
 
Common Stock
 
 
 
258,261

 
Rollins, Inc.
 
Common Stock
 
 
 
251,960

 
Wix.com Ltd.
 
Common Stock
 
 
 
244,279

 
Hyatt Hotels Corp.
 
Common Stock
 
 
 
242,684

 
Expedia Group, Inc.
 
Common Stock
 
 
 
234,087

 
The Toro Company
 
Common Stock
 
 
 
217,764


10



(a)
(b)
Identity of Issue, Borrower,
Lessor or Similar Party
 
(c)
Description of Investment
 
(d)
Cost of Investment**
 
(e)
Current Value
 
 
 
 
 
 
 
 
 
T. Rowe Price Group, Inc.
 
Common Stock
 
 
 
204,212

 
The Ultimate Software Group, Inc.
 
Common Stock
 
 
 
203,242

 
CDW Corporation
 
Common Stock
 
 
 
197,357

 
GCI lLiberty, Inc.-Cl - A
 
Common Stock
 
 
 
188,842

 
MAXIMUS, Inc.
 
Common Stock
 
 
 
176,394

 
Tiffany & Co.
 
Common Stock
 
 
 
168,427

 
Zillow Group, Inc. - Cl. C
 
Common Stock
 
 
 
161,058

 
A.O. Smith Corporation
 
Common Stock
 
 
 
157,264

 
Westinghouse Air Brake Technologies Corporation
 
Common Stock
 
 
 
141,765

 
BWX Technologies, Inc.
 
Common Stock
 
 
 
138,354

 
IAC/InterActiveCorp
 
Common Stock
 
 
 
137,829

 
Aspen Technology, Inc.
 
Common Stock
 
 
 
133,049

 
Align Technology, Inc.
 
Common Stock
 
 
 
128,381

 
Waters Corporation
 
Common Stock
 
 
 
126,396

 
Sage Therapeutics, Inc.
 
Common Stock
 
 
 
114,661

 
Alexander's, Inc.
 
Common Stock
 
 
 
114,278

 
Fastenal Co.
 
Common Stock
 
 
 
94,383

 
CarMax, Inc.
 
Common Stock
 
 
 
78,413

 
Concho Resources, Inc.
 
Common Stock
 
 
 
54,479

 
Elanco Animal Health Incorporated
 
Common Stock
 
 
 
1,892

 
Total common stock
 
 
 
 
 
$
21,325,018

 
 
 
 
 
 
 
 
*
Fidelity® 500 Index Fund
 
Mutual Fund
 
 
 
81,783,848

 
Vanguard Institutional Target Retirement 2025
 
Mutual Fund
 
 
 
56,361,954

 
Vanguard Institutional Target Retirement 2030
 
Mutual Fund
 
 
 
50,349,690

 
Vanguard Institutional Target Retirement 2020
 
Mutual Fund
 
 
 
43,682,557


Vanguard Federal Money Market Fund
 
Mutual Fund
 
 
 
36,427,470

*
Fidelity® Small Cap index Fund
 
Mutual Fund
 
 
 
30,110,705

 
Vanguard Institutional Target Retirement 2035
 
Mutual Fund
 
 
 
28,144,550

 
Vanguard Institutional Target Retirement 2040
 
Mutual Fund
 
 
 
27,257,426

 
JPMorgan Equity Income Fund Class R6
 
Mutual Fund
 
 
 
25,663,482

*
Fidelity® U.S. Bond Index Fund
 
Mutual Fund
 
 
 
25,219,621

*
Fidelity® Diversified International K6
 
Mutual Fund
 
 
 
24,159,336

 
Vanguard Institutional Target Retirement 2045
 
Mutual Fund
 
 
 
22,855,560

 
Vanguard Institutional Target Retirement 2050
 
Mutual Fund
 
 
 
21,234,099

 
Wells Fargo Special Mid Cap Value Fund
 
Mutual Fund
 
 
 
13,157,077

 
Vanguard Institutional Target Retirement Income
 
Mutual Fund
 
 
 
13,010,195

*
Fidelity® Extended Market Index Fund
 
Mutual Fund
 
 
 
11,427,507

 
Vanguard Institutional Target Retirement 2055
 
Mutual Fund
 
 
 
10,448,577

 
Vanguard Institutional Target Retirement 2015
 
Mutual Fund
 
 
 
7,947,854

 
Vanguard Total International Stock Index Fund
 
Mutual Fund
 
 
 
6,861,528

*
Fidelity® Inflation-Protected Bond Index Fund
 
Mutual Fund
 
 
 
6,477,613

 
Baird Core Plus Bond Fund
 
Mutual Fund
 
 
 
5,745,755

 
Causeway Emerging Markets Fund
 
Mutual Fund
 
 
 
1,688,402

 
Vanguard Institutional Target Retirement 2060
 
Mutual Fund
 
 
 
1,164,817

 
Total mutual funds
 
 
 
 
 
$
551,179,623

 
 
 
 
 
 
 
 

11



(a)
(b)
Identity of Issue, Borrower,
Lessor or Similar Party
 
(c)
Description of Investment
 
(d)
Cost of Investment**
 
(e)
Current Value
 
 
 
 
 
 
 
 
*
Fidelity® Growth Company Commingled Pool
 
Common collective trust
 
 
 
75,509,733

 
Mellon Stable Value
 
Common collective trust
 
 
 
11,131,228

 
Total common collective trusts
 
 
 
 
 
$
86,640,961

 
 
 
 
 
 
 


*
TransCanada Corporation
 
Common Stock
 
 
 
6,812,676

*
TransCanada Stock Fund
 
Stock Purchase Account
 
 
 
5,511

 
Total investments on the statement of net assets available for plan benefits

 
 
 
 
 
$
666,377,678

 
 
 
 
 
 
 
 
*
Participant Loans
 
Interest rates ranging from 3.25% to 8.25% maturing through 2034
 
 
 
11,190,866

 
Total Assets Held
 
 
 
 
 
$
677,568,544

 *  Represents a party-in-interest (Note 6).
** Cost omitted for participant-directed investments.
 
See accompanying Report of Independent Registered Public Accounting Firm.

12



EXHIBIT INDEX

 
23.1
Consent of Independent Registered Public Accounting Firm.
 
 



13



SIGNATURE
 
 
The Plan.  Pursuant to the requirements of the Securities Exchange Act of 1934, the trustees (or other persons who administer the employee benefit plan) have duly caused this annual report to be signed on its behalf by the undersigned thereunto duly authorized.
 
Date: June 19, 2019
 
 
 
TransCanada 401(k) and Savings Plan
 
 
 
By:
/s/ Jon A. Dobson
 
                                        
 
 
Jon A. Dobson
Member
TransCanada USA Investment Committee


14
Exhibit
EXHIBIT 23.1

Consent of Independent Registered Public Accounting Firm


To the Plan Administrator of the TransCanada 401(k) and Savings Plan:

We consent to the incorporation by reference in the Registration Statements (No. 333-184074, No. 333-151736 and No. 333-227114) pertaining to the TransCanada 401(k) and Savings Plan of our report dated June 19, 2019 relating to the statements of net assets available for benefits of the TransCanada 401(k) and Savings Plan as of December 31, 2018 and 2017 and the related statement of changes in net assets available for benefits for the year ended December 31, 2018, included in this annual report on Form 11-K.

/s/ Caron & Bletzer, PLLC

Kingston, NH
June 19, 2019