XML 172 R51.htm IDEA: XBRL DOCUMENT v3.20.1
CAPITAL STOCK (Tables)
 12 Months Ended
Dec. 31, 2019
Disclosure of share capital, reserves and other equity interest [Abstract]  
Schedule of cash dividends paid
Cash dividends paid are as follows for each of the years in the three-year period ended December 31, 2019:
Declared Date
Paid date
 
Per common
share
amount
 
Shareholder
record date
 
Common
shares issued
and
outstanding
 
Aggregate
payment (1)
March 8, 2017
March 31, 2017
 
$
0.14

 
March 21, 2017
 
59,110,335
 
$
8,316

May 8, 2017
June 30, 2017
 
$
0.14

 
June 15, 2017
 
59,169,710
 
$
8,365

August 10, 2017
September 29, 2017
 
$
0.14

 
September 15, 2017
 
59,036,310
 
$
8,150

November 10, 2017
December 29, 2017
 
$
0.14

 
December 15, 2017
 
58,799,910
 
$
8,368

March 7, 2018
March 30, 2018
 
$
0.14

 
March 20, 2018
 
58,807,410
 
$
8,333

May 9, 2018
June 29, 2018
 
$
0.14

 
June 15, 2018
 
58,817,410
 
$
8,140

August 10, 2018
September 28, 2018
 
$
0.14

 
September 14, 2018
 
58,817,410
 
$
8,214

November 7, 2018
December 28, 2018
 
$
0.14

 
December 14, 2018
 
58,867,410
 
$
8,089

March 12, 2019
March 29, 2019
 
$
0.14

 
March 22, 2019
 
58,665,310
 
$
8,189

May 8, 2019
June 28, 2019
 
$
0.14

 
June 14, 2019
 
58,877,185
 
$
8,352

August 7, 2019
September 30, 2019
 
$
0.1475

 
September 16, 2019
 
58,877,185
 
$
8,709

November 8, 2019
December 30, 2019
 
$
0.1475

 
December 16, 2019
 
58,939,685
 
$
8,742

(1) 
Aggregate dividend payment amounts presented in the table above are adjusted for the impact of foreign exchange rates on cash payments to shareholders.
Schedule of share repurchases
Information regarding share repurchases during the year ended December 31, 2018 is presented in the table below as of:
 
December 31,
2018
Common shares repurchased
217,100

Average price per common share including commissions
CDN$ 16.02
Carrying value of the common shares repurchased
$
1,296

Share repurchase premium (1)
$
1,263

Total purchase price including commissions
$
2,559

(1) 
The excess of the purchase price paid over the carrying value of the common shares repurchased is recorded in deficit in the consolidated balance sheet and in the statement of consolidated changes in equity.
Schedule of changes in number of options outstanding
The changes in number of stock options outstanding were as follows for each of the years in the three-year period ended December 31, 2019:
 
2019
 
2018
 
2017
 
Weighted
average
exercise
price
 
Number of
options
 
Weighted
average
exercise
price
 
Number of
options
 
Weighted
average
exercise
price
 
Number of
options
 
CDN$
 
 
 
CDN$
 
 
 
CDN$
 
 
Balance, beginning of year
14.59

 
1,009,793

 
12.29

 
834,375

 
11.38

 
1,061,250

Granted
17.54

 
392,986

 
21.76

 
242,918

 
—

 
—

Exercised
12.34

 
(359,375
)
 
12.04

 
(67,500
)
 
8.00

 
(226,875
)
Forfeited
15.85

 
(32,503
)
 
—

 
—

 
—

 
—

Balance, end of year
16.49

 
1,010,901

 
14.59

 
1,009,793

 
12.29

 
834,375
Schedule of stock options outstanding and exercisable
The following table summarizes information about stock options outstanding and exercisable for each of the years in the three-year period ended December 31, 2019:
 
 
Options outstanding
 
Options exercisable
Range of exercise prices (CDN$)
 
Number
 
Weighted
average
contractual
life (years)
 
Weighted
average
exercise price
 
Number
 
Weighted
average
exercise price
 
 
 
 
 
 
CDN$
 
 
 
CDN$
December 31, 2019
 
 
 
 
 
 
 
 
 
 
$12.04 to $12.55
 
397,500

 
3.13
 
12.30

 
397,500

 
12.30

$17.54
 
370,483

 
6.62
 
17.54

 
—

 
—

$21.76
 
242,918

 
5.61
 
21.76

 
80,973

 
21.76

 
 
1,010,901

 
5.01
 
16.49

 
478,473

 
13.90

 
 
Options outstanding
 
Options exercisable
Range of exercise prices (CDN$)
 
Number
 
Weighted
average
contractual
life (years)
 
Weighted
average
exercise price
 
Number
 
Weighted
average
exercise price
December 31, 2018
 
 
 
 
 
 
 
 
 
 
$12.04 to $12.14
 
386,250

 
2.18
 
12.05

 
386,250

 
12.05

$12.55 to $14.34
 
380,625

 
2.88
 
12.59

 
380,625

 
12.59

$21.76
 
242,918

 
6.61
 
21.76

 
—

 
—

 
 
1,009,793

 
3.51
 
14.59

 
766,875

 
12.32

December 31, 2017
 
 
 
 
 
 
 
 
 
 
$12.04 to $12.14
 
453,750

 
2.92
 
12.05

 
443,125

 
12.05

$12.55 to $14.34
 
380,625

 
3.88
 
12.58

 
278,125

 
12.60

 
 
834,375

 
3.36
 
12.29

 
721,250

 
12.26
Schedule of changes in number of other equity instruments outstanding
The following table summarizes information about PSUs for each of the years in the three-year period ended December 31, 2019:
 
2019
 
2018
 
2017
PSUs granted
291,905

 
284,571

 
358,386

Weighted average fair value per PSU granted
$
14.28

 
$
17.84

 
$
16.15

PSUs forfeited/cancelled
(23,739
)
 
(16,053
)
 
(7,952
)
PSUs added/(cancelled) by performance factor (1)
(401,319
)
 
(2,125
)
 
69,600

PSUs settled
—

 
(335,465
)
 
(208,800
)
Weighted average fair value per PSU settled
$
—

 
$
15.87

 
$
18.49

Cash payment on settlement
$
—

 
$
5,863

 
$
4,174


(1) 
The table below provides further information regarding the PSUs settled included in the table above. The number of PSUs settled reflects the performance adjustments to the Target Shares:
Grant Date
 
Date Settled
 
Target Shares
 
Performance
 
PSUs settled
June 11, 2014
 
June 22, 2017
 
139,200

 
150
%
 
208,800

March 14, 2015
 
March 21, 2018
 
217,860

 
100
%
 
217,860

May 14, 2015
 
May 22, 2018
 
115,480

 
100
%
 
115,480

May 20, 2015
 
May 28, 2018
 
4,250

 
50
%
 
2,125

March 21, 2016
 
March 21, 2019
 
371,158

 
—
%
 
—

December 20, 2016
 
December 20, 2019
 
30,161

 
—
%
 
—

The following table summarizes information about RSUs for the two-year period ended December 31, 2019:
 
2019
 
2018
RSUs granted
120,197

 
113,047

Weighted average fair value per RSU granted
$
13.74

 
$
16.29

 RSUs forfeited
(7,412
)
 
(1,228
)
The following table summarizes information about RSUs outstanding as of:
 
December 31,
2019
 
December 31,
2018
RSUs outstanding
224,604

 
111,819

Weighted average fair value per RSU outstanding
$
12.67

 
$
12.18

The following table summarizes information regarding SARs activity for the two-year period ended December 31, 2018:
 
2018
 
2017
SARs exercised (1)
147,500

 
13,250

Cash payments on exercise
$
1,481

 
$
155



(1)     Base price of SARs exercised was CDN$7.56.

The following table summarizes information about DSUs for the three-year period ended December 31, 2019:
 
2019
 
2018
 
2017
DSUs granted
72,434

 
69,234

 
48,179

Weighted average fair value per DSU granted
$
13.83

 
$
14.75

 
$
17.79

 DSUs settled
—

 
37,668

 
—

Weighted average fair value per DSU settled
$
—

 
$
14.50

 
$
—

Cash payments on DSUs settled
$
—

 
$
546

 
$
—

The following table summarizes information about DSUs outstanding as of:
 
December 31,
2019
 
December 31,
2018
DSUs outstanding
271,427

 
198,993

Weighted average fair value per DSU outstanding
$
12.67

 
$
12.18

The following table summarizes information about PSUs outstanding as of:
 
December 31,
2019
 
December 31,
2018
PSUs outstanding
901,086

 
1,034,239

Weighted average fair value per PSU outstanding
$
8.09

 
$
9.49
Schedule of assumptions to calculate weighted average fair value of other equity instruments
The weighted average fair value of stock options granted during 2019 and 2018 was $2.21 and $3.65, respectively, and was estimated using the Black-Scholes option pricing model, taking into account the following weighted average assumptions:
 
December 31, 2019
 
December 31, 2018
Expected life
4.9 years

 
4.8 years

Expected volatility(1)
29.79
%
 
32.09
%
Risk-free interest rate
1.44
%
 
2.05
%
Expected dividends
4.27
%
 
3.30
%
Stock price at grant date
CDN$ 17.54
 
CDN$ 21.76
Exercise price of awards
CDN$ 17.54
 
CDN$ 21.76
Foreign exchange rate USD to CDN
1.3380

 
1.2809

(1) 
Expected volatility was calculated by applying a weighted average of the daily closing price on the TSX for a term commensurate with the expected life of the grant.
The weighted average fair value of PSUs granted subsequent to December 31, 2017 was based 50% on the VWAP of the Company's common shares on the TSX for the five trading days preceding the grant date which were CDN$18.31 and CDN$21.22 at December 31, 2019 and 2018, respectively, and 50% based on a Monte Carlo simulation model implemented in a risk-neutral framework considering the following assumptions:
 
2019
 
2018
Expected life
3 years

 
3 years

Expected volatility (1)
25
%
 
30
%
US risk-free interest rate
2.36
%
 
2.43
%
Canadian risk-free rate
1.60
%
 
1.96
%
Expected dividends (2)
CDN$ 0.00
 
CDN$ 0.00
Performance period starting price (3)
CDN$ 16.36
 
CDN$ 21.13
Stock price as of estimation date
CDN$ 18.06
 
CDN$ 20.59
The weighted average fair value of PSUs granted prior to December 31, 2017 was estimated based on a Monte Carlo simulation model implemented in a risk-neutral framework, taking into account the following weighted average assumptions for each of the year ended December 31, 2017:
 
2017
Expected life
3 years

Expected volatility (1)
34
%
US risk-free interest rate
1.57
%
Expected dividends (2)
CDN$ 0.00
Performance period starting price (3)
CDN$ 22.26
Stock price as of estimation date
CDN$ 21.94
(1) 
Expected volatility was calculated based on the daily dividend adjusted closing price change on the TSX for a term commensurate with the expected life of the grant.
(2) 
A participant will receive a cash payment from the Company upon PSU settlement that is equivalent to the number of settled PSUs multiplied by the amount of cash dividends per share declared by the Company between the date of grant and the settlement date. As such, there is no impact from expected future dividends in the Monte Carlo simulation model.
(3) 
The performance period starting price is measured as the VWAP for the common shares of the Company on the TSX on the grant dates.
Schedule of performance percentage of awards granted
The number of PSUs granted prior to December 31, 2017 which will be eligible to vest can range from 0% to 150% of the Target Shares ("Target Shares" reflects 100% of the PSUs granted) based on the Company's total shareholder return ("TSR") ranking relative to a specified peer group of companies ("Peer Group") over the measurement period as outlined in the table below:
TSR Ranking Relative to the Peer Group
 
Percent of Target Shares Vested
76th percentile or higher
 
150
%
51st-75th percentile
 
100
%
25th-50th percentile
 
50
%
Less than the 25th percentile
 
0
%
As amended, the TSR performance adjustment factor is determined as follows (interpolated on a straight-line basis):
TSR Ranking Relative to the Peer Group
 
Percent of Target Shares Vested
Less than the 25th percentile
 
0
%
25th percentile
 
50
%
50th percentile
 
100
%
75th percentile or above
 
150
%
Based on the Company’s performance adjustment factors as of December 31, 2019, the number of PSUs earned if all of the outstanding awards were to be settled at December 31, 2019, would be as follows:
Grant Date
Performance
March 20, 2017
—
%
March 21, 2018
107.2
%
March 21, 2019
63.5
%
The relative TSR performance adjustment factor is determined as follows:
TSR Ranking Relative to the Peer Group
 
Percent of Target Shares Vested
90th percentile or higher
 
200
%
75th percentile
 
150
%
50th percentile
 
100
%
25th percentile
 
50
%
Less than the 25th percentile
 
0
%
The ROIC Performance adjustment factor is determined as follows:
ROIC Performance
 
Percent of Target Shares Vested
1st Tier
 
0
%
2nd Tier
 
50
%
3rd Tier
 
100
%
4th Tier
 
150
%
Schedule of share-based compensation expense and liabilities
The following table summarizes share-based compensation expense (benefit) recorded in earnings in SG&A for the three-year period ended December 31, 2019:
 
2019
 
2018
 
2017
 
$
 
$
 
$
Stock options
701

 
467

 
167

PSUs
(2,057
)
 
866

 
2,903

DSUs
914

 
230

 
512

RSUs
943

 
448

 
—

SARs
—

 
(97
)
 
(291
)
 
501

 
1,914

 
3,291

The following table summarizes share-based liabilities recorded in the consolidated balance sheets for the years ended:
 
December 31,
2019
 
December 31,
2018
Share-based compensation liabilities, current
$
 
$
PSUs (1)
1,291

 
2,563

DSUs (2)
3,457


2,417

RSUs
200

 
86

 
4,948

 
5,066

 
 
 
 
Share-based compensation liabilities, non-current
 
 
 
PSUs (1)
3,055

 
3,764

RSUs
1,192

 
361

 
4,247

 
4,125


(1)     Includes dividend equivalents accrued on awards.
(2)    Includes dividend equivalent grants.
Schedule of activity in contributed surplus
The activity for the three-year period ended December 31, 2019 in the consolidated changes in equity under the caption contributed surplus is detailed as follows:
 
2019
 
2018
 
2017
 
$
 
$
 
$
Change in excess tax benefit on exercised share-based awards
(38
)
 
(7
)
 
(597
)
Change in excess tax benefit on outstanding share-based awards
21

 
(737
)
 
(3,135
)
Share-based compensation expense credited to capital on options exercised
(976
)
 
(179
)
 
(495
)
Share-based compensation expense
 
 
 
 
 
Stock options
701

 
467

 
167

DSUs
—

 
—

 
(1,935
)
PSUs
—

 
—

 
(6,060
)
 
701

 
467

 
(7,828
)
Change in contributed surplus
(292
)
 
(456
)
 
(12,055
)