STOCK OPTION AND STOCK UNIT PLANS (Tables)

12 Months Ended

Dec. 31, 2024

Share-Based Payment Arrangement [Abstract]


December 31, 2024	Number	Weighted Average Exercise Price	Weighted Average Remaining Contractual Life (years)	Aggregate Intrinsic Value
(number of options in thousands; weighted average exercise price in Canadian dollars; intrinsic value in millions of Canadian dollars)
Options outstanding at beginning of year	28,729	50.79
Options granted	5,036	46.36
Options exercised1	(7,328)	49.27
Options cancelled or expired	(1,113)	51.78
Options outstanding at end of year	25,324	50.31	5.7	70
Options vested at end of year2	15,602	51.33	4.2	37

1The total intrinsic value of ISOs exercised during the years ended December 31, 2024, 2023 and 2022 was $18 million, $2 million and $66 million, respectively, and cash received on exercise was $1 million, nil and $3 million, respectively.

2The total fair value of ISOs vested during the years ended December 31, 2024, 2023 and 2022 was $17 million, $20 million and $21 million, respectively.

Schedule of Weighted Average Assumptions Used to Determine the Fair Value of Stock Options Granted

Weighted average assumptions used to determine the fair value of ISOs granted using the Black-Scholes-Merton model are as follows:


Year ended December 31,	2024		2023		2022
Fair value per option (Canadian dollars)1	4.07		6.05		5.07
Valuation assumptions
Expected option term (years)2	6		6		6
Expected volatility3	21.1	%	22.2	%	21.9	%
Expected dividend yield4	8.1	%	6.7	%	6.5	%
Risk-free interest rate5	3.8	%	3.5	%	1.8	%

1Options granted to US employees are based on the NYSE prices. The option value and assumptions shown are based on a weighted average of the US and Canadian options. The fair value per option for the years ended December 31, 2024, 2023 and 2022 were $3.53, $5.38 and $4.78, respectively, for Canadian employees and US$3.58, US$5.23 and US$4.62, respectively, for US employees.

2The expected option term is six years based on historical exercise practice and five years for retirement eligible employees.

3Expected volatility is determined with reference to historic daily share price volatility and consideration of the implied volatility observable in call option values near the grant date.

4The expected dividend yield is the current annual dividend at the grant date divided by the current stock price.

5The risk-free interest rate is based on the Government of Canada's Canadian bond yields and the US Treasury bond yields at the grant date.

Share-Based Payment Arrangement, Performance Shares, Activity


December 31, 2024	Number	Weighted Average Remaining Contractual Life (years)	Aggregate Intrinsic Value
(number of units in thousands; intrinsic value in millions of Canadian dollars)
Units outstanding at beginning of year	3,180
Units granted	1,444
Units cancelled	(104)
Units matured1	(1,355)
Dividend reinvestment	237
Units outstanding at end of year	3,402	1.6	244

1The total amount paid during the years ended December 31, 2024, 2023 and 2022 for PSUs was $65 million, $123 million and $90 million, respectively.

Schedule of Outstanding Stock Units


December 31, 2024	Number	Weighted Average Grant Date Fair Value2	Weighted Average Remaining Contractual Life (years)	Aggregate Intrinsic Value
(number of units in thousands; intrinsic value in millions of Canadian dollars)
Units outstanding at beginning of year	3,571	50.69
Units granted	1,758	48.50
Units cancelled	(112)	51.38
Units matured1	(1,910)	49.99
Dividend reinvestment	284	50.94
Units outstanding at end of year	3,591	51.10	1.0	187

1The total amount paid during the years ended December 31, 2024, 2023 and 2022 for RSUs was $40 million, $56 million and $32 million, respectively.

2Weighted average grant date fair value excludes cash-settled units.