v3.24.0.1
Financial instruments and management of financial risks (Tables)
 12 Months Ended
Dec. 31, 2023
Disclosure of detailed information about financial instruments [abstract]  
Schedule of financial instruments, and the nature of certain risks to which they may be subject
Our financial instruments, and the nature of certain risks to which they may be subject, are as set out in the following table.
Risks
Market risks
Financial instrumentAccounting classificationCreditLiquidityCurrencyInterest
rate
Measured at amortized cost
Accounts receivable
AC(1)
XX
Due from/to affiliated companies
AC(1)
XX
Accounts payable and accrued liabilities
AC(1)
XX
Provisions
AC(1)
X
Long-term debt
AC(1)
XX
Measured at fair value
Cash and cash equivalents
FVTPL(2)
XXX
Foreign exchange and interest rate derivatives(3)
FVTPL/FVOCI(2)
XXX
X
_________________________________________________
(1)For accounting recognition and measurement purposes, classified as amortized cost (AC). All such items, excluding our provisions for written put options, use other observable inputs (Level 2) for measuring fair value at the reporting date, while our provisions for written put options use unobservable inputs (Level 3).
(2)For accounting recognition and measurement purposes, classified as fair value through net income (FVTPL). Unrealized changes in the fair values of financial instruments are included in net income unless the instrument is part of a cash flow hedging relationship. The effective portion of unrealized changes in the fair values of financial instruments held for hedging are included in other comprehensive income (FVOCI).
(3)Use of derivative financial instruments is subject to a policy which requires that no derivative transaction is to be entered into for the purpose of establishing a speculative or leveraged position (the corollary being that all derivative transactions are to be entered into for risk management purposes only) and sets criteria for the credit worthiness of the transaction counterparties.
Schedule of maximum exposure (excluding income tax effects) to credit risk
Excluding credit risk, if any, arising from interest rate and currency swaps settled on a gross basis, the best representation of our maximum exposure (excluding income tax effects) to credit risk, which is a worst-case scenario and does not reflect results we expect, is as set out in the following table:
As at December 31 (millions)20232022
Cash and cash equivalents$127 $125 
Accounts receivable498 428 
Due from affiliated companies62 81 
Derivative assets16 32 
$703 $666 
Schedule of contractual maturities of undiscounted financial liabilities, non-derivative The contractual maturities of our undiscounted financial liabilities as at December 31, 2023, including interest thereon (where applicable), are as set out in the following tables:
Non-derivativeDerivative
Composite long-term debtCurrency swap
agreement amounts
to be exchanged
Year (millions)Non-
interest
bearing
financial
liabilities
Due to
affiliated
companies
(Note 21(a))
Long-term
debt,
excluding
leases(1)
(Note 16)
Leases(Receive)Pay
Interest rate swap agreement
Total
2024$292 $178 $169 $86 $(146)$132 $2 $713 
202519 — 164 78 (41)34 — 254 
202641 — 160 68 (39)33 (1)262 
2027131 — 155 52 (38)32 (1)331 
202839 — 1,224 39 (342)347 — 1,307 
Thereafter— — — 80 — — — 80 
Total$522 $178 $1,872 $403 $(606)$578 $— $2,947 
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(1)Future cash outflows in respect of associated interest and carrying costs for amounts drawn under our credit facilities (if any) have been calculated based upon the rates in effect at December 31, 2023.
Schedule of contractual maturities of undiscounted financial liabilities, derivative The contractual maturities of our undiscounted financial liabilities as at December 31, 2023, including interest thereon (where applicable), are as set out in the following tables:
Non-derivativeDerivative
Composite long-term debtCurrency swap
agreement amounts
to be exchanged
Year (millions)Non-
interest
bearing
financial
liabilities
Due to
affiliated
companies
(Note 21(a))
Long-term
debt,
excluding
leases(1)
(Note 16)
Leases(Receive)Pay
Interest rate swap agreement
Total
2024$292 $178 $169 $86 $(146)$132 $2 $713 
202519 — 164 78 (41)34 — 254 
202641 — 160 68 (39)33 (1)262 
2027131 — 155 52 (38)32 (1)331 
202839 — 1,224 39 (342)347 — 1,307 
Thereafter— — — 80 — — — 80 
Total$522 $178 $1,872 $403 $(606)$578 $— $2,947 
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(1)Future cash outflows in respect of associated interest and carrying costs for amounts drawn under our credit facilities (if any) have been calculated based upon the rates in effect at December 31, 2023.
Sensitivity analysis of exposure to market risks
Net incomeOther
comprehensive
income		Comprehensive
income
Years Ended December 31 (increase (decrease) in millions)202320222021202320222021202320222021
Reasonably possible changes in market risks(1)
10% change in US$: CDN$ exchange rate
US$ appreciates$10 $8 $14 $— $— $— $10 $8 $14 
US$ depreciates$(12)$(8)$(14)$— $— $— $(12)$(8)$(14)
10% change in US$: Euro exchange rate
US$ appreciates$7 $14 $11 $(41)$(44)$(36)$(34)$(30)$(25)
US$ depreciates$(7)$(14)$(11)$41 $44 $36 $34 $30 $25 
10% change in US$: Peso exchange rate
US$ appreciates$(3)$(2)$(1)$— $— $— $(3)$(2)$(1)
US$ depreciates$3 $2 $1 $— $— $— $3 $2 $1 
25 basis point change in market interest rate
Rate increases$(3)$(1)$(2)$— $— $— $(3)$(1)$(2)
Rate decreases$3 $1 $2 $— $— $— $3 $1 $2 
_________________________________________________
(1)These sensitivities are hypothetical and should be used with caution. Changes in net income and/or other comprehensive income generally cannot be extrapolated because the relationship of the change in assumption to the change in net income and/or other comprehensive income may not be linear. In this table, the effect of a variation in a particular assumption on the amount of net income and/or other comprehensive income is calculated without changing any other factors; in reality, changes in one factor may result in changes in another, which might magnify or counteract the sensitivities. The sensitivity analysis assumes that we would realize the changes in exchange rates; in reality, the competitive marketplace in which we operate would have an effect on this assumption. No consideration has been made for a difference in the notional number of common shares associated with share-based compensation awards made during the reporting period that may have arisen due to a difference in the common share price.
(2)To facilitate ongoing comparison of sensitivities, a constant variance of approximate magnitude has been used.
Schedule of derivative financial instruments measured at fair value on a recurring basis
The derivative financial instruments that we measure at fair value on a recurring basis subsequent to initial recognition are as set out in the following table; all such items use significant other observable inputs (Level 2) for measuring fair value at the reporting date.
20232022
As at December 31 (millions)DesignationMaximum
maturity
date		Notional
amount		Fair
value
and
carrying value		Price or
rate		Maximum
maturity
date		Notional
amount		Fair
value
and
carrying value		Price or
rate
Current assets(1)
Derivatives used to manage
Currency risks arising from Euro business acquisition
HFH3
2024$22 $12 
USD:1.00 EUR:0.92
2023$21 $19 
USD:1.00 EUR:0.86
Currency risks arising from Philippine peso denominated purchases
HFT2
2024$81 $2 
USD:1.00PHP:56.32
2023$53 $— 
USD:1.00PHP:56.90
Interest rate risk associated with non-fixed rate credit facility amounts drawn
HFH3
2024$9 $2 
3.52%
—$— $— —
Non-current assets(1)
Derivatives used to manage
Currency risks arising from Euro business acquisition
HFH3
—$— $— —2025$341 $13 
USD:1.00 EUR:0.86
Current liabilities(1)
Derivatives used to manage
Currency risks arising from Philippine peso denominated purchases
HFT2
2024$17 $— 
USD:1.00PHP:54.94
2023$50 $1 
USD:1.00PHP:53.55
Non-current liabilities(1)
Derivatives used to manage
Currency risks arising from Euro business acquisition
HFH3
2028$409 $10 
USD:1.00 EUR0.92
—$— $— —
Interest rate risk associated with non-fixed rate credit facility amounts drawn
HFH3
2028$155 $2 
3.52%
—$— $— —
______________________________________
(1)Notional amounts of derivative financial assets and liabilities are not set off.
(2)Foreign currency hedges are designated as held for trading (HFT) upon initial recognition; hedge accounting is not applied.
(3)Designated as held for hedging (HFH) upon initial recognition (cash flow hedging item); hedge accounting is applied. Unless otherwise noted, hedge ratio is 1:1 and is established by assessing the degree of matching between the notional amounts of hedging items and the notional amounts of the associated hedged items.
Schedule of gains and losses, excluding income tax effects, arising from derivative instruments that are classified as cash flow hedging items
The following table sets out the gains and losses, excluding income tax effects, arising from derivative instruments that are classified as cash flow hedging items and their location within the Consolidated statements of income and other comprehensive income.
Credit risk associated with such derivative instruments, as discussed further in (b), would be the primary source of hedge ineffectiveness. There was no ineffective portion of derivative instruments classified as cash flow hedging items for the periods presented.
Amount of gain (loss)
recognized in other
comprehensive income
(effective portion)		Gain (loss) reclassified from other
comprehensive income to income
(effective portion)
AmountAmount
Years Ended December 31 (millions)202320222021Location202320222021
Derivatives used to manage interest rate risk
Associated with non-fixed rate credit facility amounts drawn$2 $1 $—  Interest expense $2 $(1)$(3)
$2 $1 $— $2 $(1)$(3)
Derivatives used to manage currency risks
Arising from net investment in foreign operation$(29)$37 $38  Foreign exchange $— $(9)$— 
$(27)$38 $38 $2 $(10)$(3)