Document and Entity Information
Document and Entity Information | 12 Months Ended |
Dec. 31, 2019shares | |
Document Information [Line Items] | |
Document Type | 20-F |
Document Annual Report | true |
Document Transition Report | false |
Amendment Flag | false |
Document Period End Date | Dec. 31, 2019 |
Document Fiscal Year Focus | 2019 |
Document Fiscal Period Focus | FY |
Entity Current Reporting Status | Yes |
Entity Well-known Seasoned Issuer | Yes |
Entity Registrant Name | CELESTICA INC |
Entity Central Index Key | 0001030894 |
Current Fiscal Year End Date | --12-31 |
Entity Filer Category | Large Accelerated Filer |
Entity Shell Company | false |
Entity Shell Company | false |
Entity Emerging Growth Company | false |
Entity Interactive Data Current | Yes |
Entity Voluntary Filers | No |
SVS | |
Document Information [Line Items] | |
Entity Common Stock, Shares Outstanding | 110,192,682 |
MVS | |
Document Information [Line Items] | |
Entity Common Stock, Shares Outstanding | 18,600,193 |
Preference Shares | |
Document Information [Line Items] | |
Entity Common Stock, Shares Outstanding | 0 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Current assets: | ||
Cash and cash equivalents | $ 479.5 | $ 422 |
Accounts receivable | 1,052.7 | 1,206.6 |
Inventories | 992.2 | 1,089.9 |
Income taxes receivable | 7.7 | 5 |
Assets classified as held for sale | 0.7 | 27.4 |
Other current assets | 59.2 | 72.6 |
Total current assets | 2,592 | 2,823.5 |
Property, plant and equipment | 355 | 365.3 |
Land rights | 104.1 | |
Goodwill | 198.3 | 198.4 |
Intangible assets | 251.3 | 283.6 |
Deferred income taxes | 33.6 | 36.7 |
Other non-current assets | 26.4 | 30.2 |
Total assets | 3,560.7 | 3,737.7 |
Current liabilities: | ||
Current portion of borrowings under credit facility & lease obligations | 139.6 | 107.7 |
Accounts payable | 898 | 1,126.7 |
Accrued and other current liabilities | 370.9 | 320.4 |
Income taxes payable | 46.7 | 42.3 |
Current portion of provisions | 26.1 | 23.2 |
Total current liabilities | 1,481.3 | 1,620.3 |
Long-term portion of borrowings under credit facility & lease obligations | 559.1 | 650.2 |
Pension and non-pension post-employment benefit obligations | 107.1 | 88.8 |
Provisions and other non-current liabilities | 28.6 | 20.6 |
Deferred income taxes | 28.4 | 25.5 |
Total liabilities | 2,204.5 | 2,405.4 |
Equity: | ||
Capital stock | 1,832.1 | 1,954.1 |
Treasury stock | (14.8) | (20.2) |
Contributed surplus | 982.6 | 906.6 |
Deficit | (1,420.1) | (1,481.7) |
Accumulated other comprehensive loss | (23.6) | (26.5) |
Total equity | 1,356.2 | 1,332.3 |
Total liabilities and equity | $ 3,560.7 | $ 3,737.7 |
Consolidated Statement of Opera
Consolidated Statement of Operations - USD ($) shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Profit or loss [abstract] | |||
Revenue | $ 5,888.3 | $ 6,633.2 | $ 6,142.7 |
Cost of sales | 5,503.6 | 6,202.7 | 5,724.2 |
Gross profit | 384.7 | 430.5 | 418.5 |
Selling, general and administrative expenses (SG&A) | 227.3 | 219 | 203.2 |
Research and development | 28.4 | 28.8 | 26.2 |
Amortization of intangible assets | 29.6 | 15.4 | 8.9 |
Other charges (recoveries) | (49.9) | 61 | 37 |
Earnings from operations | 149.3 | 106.3 | 143.2 |
Finance costs | 49.5 | 24.4 | 10.1 |
Earnings before income taxes | 99.8 | 81.9 | 133.1 |
Income tax expense (recovery) | |||
Current | 22.8 | 39.7 | 39.1 |
Deferred | 6.7 | (56.7) | (11.5) |
Income tax expense (recovery) | 29.5 | (17) | 27.6 |
Net earnings | $ 70.3 | $ 98.9 | $ 105.5 |
Basic earnings per share (in dollars per share) | $ 0.54 | $ 0.71 | $ 0.74 |
Diluted earnings per share (in dollars per share) | $ 0.53 | $ 0.70 | $ 0.73 |
Shares used in computing per share amounts (in millions): | |||
Basic (in shares) | 131 | 139.4 | 143.1 |
Diluted (in shares) | 131.8 | 140.6 | 145.2 |
Consolidated Statement of Compr
Consolidated Statement of Comprehensive Income - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of analysis of other comprehensive income by item [line items] | |||
Net earnings | $ 70.3 | $ 98.9 | $ 105.5 |
Items that will not be reclassified to net earnings: | |||
Losses on pension and non-pension post-employment benefit plans | (8.7) | (54.9) | (18.2) |
Items that may be reclassified to net earnings: | |||
Currency translation differences for foreign operations | (0.2) | 0.1 | 0.7 |
Total comprehensive income | 64.5 | 24.2 | 105.3 |
Currency forward | |||
Items that may be reclassified to net earnings: | |||
Changes from derivatives designated as hedges | 10.8 | (15.5) | 17.3 |
Interest rate swap | |||
Items that may be reclassified to net earnings: | |||
Changes from derivatives designated as hedges | $ (7.7) | $ (4.4) | $ 0 |
Consolidated Statement of Chang
Consolidated Statement of Changes in Equity - USD ($) $ in Millions | Total | Currency forward | Interest rate swap | Capital stock (note 13) | Treasury stock (note 13) | Contributed surplus | Deficit | Accumulated other comprehensive income (loss) | [1] | Accumulated other comprehensive income (loss)Currency forward | [1] | Accumulated other comprehensive income (loss)Interest rate swap | [1] |
Equity, beginning balance (Previously stated) at Dec. 31, 2016 | $ 1,257.8 | $ 2,048.2 | $ (15.3) | $ 862.6 | $ (1,613) | $ (24.7) | |||||||
Capital transactions: | |||||||||||||
Issuance of capital stock | 13.6 | 30.4 | (16.8) | ||||||||||
Repurchase of capital stock for cancellation | (19.9) | (30.3) | 10.4 | ||||||||||
Purchase of treasury stock for stock-based plans | (16.7) | (16.7) | |||||||||||
Stock-based compensation (SBC) and other | 30.1 | 23.3 | 6.8 | ||||||||||
Total comprehensive income: | |||||||||||||
Net earnings | 105.5 | 105.5 | |||||||||||
Losses on pension and non-pension post-employment benefit plans | (18.2) | (18.2) | |||||||||||
Currency translation differences for foreign operations | 0.7 | 0.7 | |||||||||||
Changes from derivatives designated as hedges | $ 17.3 | $ 0 | $ 17.3 | ||||||||||
Equity, ending balance at Dec. 31, 2017 | 1,370.2 | 2,048.3 | (8.7) | 863 | (1,525.7) | (6.7) | |||||||
Capital transactions: | |||||||||||||
Issuance of capital stock | 0.4 | 14.9 | (14.5) | ||||||||||
Repurchase of capital stock for cancellation | (75.5) | (109.1) | 33.6 | ||||||||||
Purchase of treasury stock for stock-based plans | (22.4) | (22.4) | |||||||||||
Stock-based compensation (SBC) and other | 35.4 | 10.9 | 24.5 | ||||||||||
Total comprehensive income: | |||||||||||||
Net earnings | 98.9 | 98.9 | |||||||||||
Losses on pension and non-pension post-employment benefit plans | (54.9) | (54.9) | |||||||||||
Currency translation differences for foreign operations | 0.1 | 0.1 | |||||||||||
Changes from derivatives designated as hedges | (15.5) | (4.4) | (15.5) | $ (4.4) | |||||||||
Equity, ending balance at Dec. 31, 2018 | 1,332.3 | 1,954.1 | (20.2) | 906.6 | (1,481.7) | (26.5) | |||||||
Capital transactions: | |||||||||||||
Issuance of capital stock | 0 | 10.4 | (10.4) | ||||||||||
Repurchase of capital stock for cancellation | (67.3) | (132.4) | 65.1 | ||||||||||
Purchase of treasury stock for stock-based plans | (9.2) | (9.2) | |||||||||||
Stock-based compensation (SBC) and other | 35.9 | 14.6 | 21.3 | ||||||||||
Total comprehensive income: | |||||||||||||
Net earnings | 70.3 | 70.3 | |||||||||||
Losses on pension and non-pension post-employment benefit plans | (8.7) | (8.7) | |||||||||||
Currency translation differences for foreign operations | (0.2) | (0.2) | |||||||||||
Changes from derivatives designated as hedges | $ 10.8 | $ (7.7) | $ 10.8 | $ (7.7) | |||||||||
Equity, ending balance at Dec. 31, 2019 | $ 1,356.2 | $ 1,832.1 | $ (14.8) | $ 982.6 | $ (1,420.1) | $ (23.6) | |||||||
[1] | Accumulated other comprehensive loss is net of tax. See note 14. |
Consolidated Statement of Cash
Consolidated Statement of Cash Flows - USD ($) | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Operating activities: | ||||
Net earnings | $ 70,300,000 | $ 98,900,000 | $ 105,500,000 | |
Adjustments to net earnings for items not affecting cash: | ||||
Depreciation and amortization | 135,400,000 | 89,100,000 | 76,500,000 | |
Equity-settled SBC | 34,100,000 | 33,400,000 | 30,100,000 | |
Other charges (recoveries) | (86,100,000) | 1,400,000 | 5,700,000 | |
Finance costs | 49,500,000 | 24,400,000 | 10,100,000 | |
Income tax expense (recovery) | 29,500,000 | (17,000,000) | 27,600,000 | |
Other | 24,200,000 | (7,500,000) | (1,600,000) | |
Changes in non-cash working capital items: | ||||
Accounts receivable | 153,700,000 | (155,400,000) | (6,300,000) | |
Inventories | 97,700,000 | (224,000,000) | (139,600,000) | |
Other current assets | 16,500,000 | 7,600,000 | (2,000,000) | |
Accounts payable, accrued and other current liabilities and provisions | (158,800,000) | 227,000,000 | 51,800,000 | |
Non-cash working capital changes | 109,100,000 | (144,800,000) | (96,100,000) | |
Net income tax paid | (21,000,000) | (44,800,000) | (30,800,000) | |
Net cash provided by operating activities | 345,000,000 | 33,100,000 | 127,000,000 | |
Investing activities: | ||||
Acquisitions | 2,700,000 | (467,100,000) | 0 | |
Purchase of computer software and property, plant and equipment | (80,500,000) | (82,200,000) | (102,600,000) | |
Proceeds from sale of assets | 116,500,000 | 3,700,000 | 800,000 | |
Repayment of advances from solar supplier | 0 | 0 | 12,500,000 | |
Net cash provided by (used in) investing activities | 38,700,000 | (545,600,000) | (89,300,000) | |
Financing activities: | ||||
Lease payments | (38,200,000) | (17,000,000) | (6,500,000) | |
Issuance of capital stock | 0 | 400,000 | 13,600,000 | |
Repurchase of capital stock for cancellation | (67,300,000) | (75,500,000) | (19,900,000) | |
Purchase of treasury stock for stock-based plans | (9,200,000) | (22,400,000) | (16,700,000) | |
Finance costs and waiver fees paid | [1] | (46,500,000) | (36,000,000) | (10,200,000) |
Net cash provided by (used in) financing activities | (326,200,000) | 419,300,000 | (79,700,000) | |
Net increase (decrease) in cash and cash equivalents | 57,500,000 | (93,200,000) | (42,000,000) | |
Cash and cash equivalents, beginning of year | 422,000,000 | 515,200,000 | 557,200,000 | |
Cash and cash equivalents, end of year | 479,500,000 | 422,000,000 | 515,200,000 | |
Payments for debt issue costs | 2,900,000 | 12,900,000 | 0 | |
Prior credit facility | ||||
Financing activities: | ||||
Borrowings under credit facility | 0 | 163,000,000 | 0 | |
Repayments under credit facility | 0 | (350,500,000) | (40,000,000) | |
New credit facility | ||||
Financing activities: | ||||
Borrowings under credit facility | 48,000,000 | 759,000,000 | 0 | |
Repayments under credit facility | $ (213,000,000) | $ (1,700,000) | $ 0 | |
[1] | Finance costs paid includes debt issuance costs paid of $2.9 in 2019 (2018 — $12.9; 2017 — nil). We paid $2.0 in fees in Q4 2019 in connection with obtaining the Q4 2019 Waivers (see note 12). |
Reporting Entity
Reporting Entity | 12 Months Ended |
Dec. 31, 2019 | |
General Information About Financial Statements [Abstract] | |
Reporting Entity | REPORTING ENTITY: Celestica Inc. (Celestica) is incorporated in Ontario with its corporate headquarters located in Toronto, Ontario, Canada. Celestica’s subordinate voting shares (SVS) are listed on the Toronto Stock Exchange (TSX) and the New York Stock Exchange (NYSE). Since the first quarter of 2018 (Q1 2018), Celestica's operating and reportable segments consist of its Advanced Technology Solutions (ATS) segment and its Connectivity & Cloud Solutions (CCS) segment. Financial information for 2017 was previously reclassified to reflect this segment structure. See note 25 for further detail. |
Basis of Preparation and Signif
Basis of Preparation and Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure Of Significant Accounting Policies [Abstract] | |
Basis of Preparation and Significant Accounting Policies | BASIS OF PREPARATION AND SIGNIFICANT ACCOUNTING POLICIES: Statement of compliance: The consolidated financial statements have been prepared in accordance with International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board (IASB). The consolidated financial statements were authorized for issuance by our Board of Directors on March 12, 2020 . Functional and presentation currency: The consolidated financial statements are presented in U.S. dollars, which is also our functional currency. Unless otherwise noted, all financial information is presented in millions of U.S. dollars (except percentages and per share amounts). Use of estimates and judgments: The preparation of financial statements in conformity with IFRS requires management to make judgments, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets and liabilities, revenue and expenses, and related disclosures with respect to contingent assets and liabilities. We base our judgments, estimates and assumptions on current facts, historical experience and various other factors that we believe are reasonable under the circumstances. The economic environment could also impact certain estimates necessary to prepare our consolidated financial statements, including significant estimates and discount rates applicable to the determination of the recoverable amounts used in our impairment testing of our non-financial assets. Our assessment of these factors forms the basis for our judgments on the carrying values of our assets and liabilities, and the accrual of our costs and expenses. Actual results could differ materially from our estimates and assumptions. We review our estimates and underlying assumptions on an ongoing basis and make revisions as determined necessary by management. Revisions are recognized in the period in which the estimates are revised and may impact future periods as well. Key sources of estimation uncertainty and judgment: We have applied significant estimates, judgment and assumptions in the following areas which we believe could have a significant impact on our reported results and financial position: our determination of the timing of revenue recognition; our measurement of income taxes; the determination of our cash generating units (CGUs*); whether events or changes in circumstances are indicators that an impairment review of our assets or CGUs should be conducted; the measurement of our CGUs' recoverable amounts, which includes estimating future growth, profitability, discount and terminal growth rates, and the fair value of any real property; and the allocation of the purchase price and other valuations related to our business acquisitions. We describe our use of judgment and estimation uncertainties in greater detail in the accounting policies described under “Significant Accounting Policies” below. * CGUs are the smallest identifiable group of assets that cannot be tested individually and generate cash inflows that are largely independent of those of other assets or groups of assets, and can be comprised of a single site, a group of sites, or a line of business. Recently adopted accounting standards: Initial adoption and application of IFRS 16, Leases: Effective January 1, 2019, we adopted IFRS 16 , Leases, which brings most leases on-balance sheet for lessees under a single model, eliminating the distinction between operating and finance leases. IFRS 16 supersedes IAS 17, Leases , and related interpretations. In connection therewith, as of such date, we recognize right-of-use (ROU) assets and related lease obligations as of the applicable lease commencement date. ROU assets represent our right to use such leased assets, and our lease obligations represent our related lease payment obligations. In adopting this standard, we applied the modified retrospective approach, permitting us to recognize the cumulative effect of such adoption as an adjustment to our opening balance sheet as of January 1, 2019, without restatement of prior period comparative information. Upon initial adoption of IFRS 16, we recognized ROU assets of $111.5 and related lease obligations of $112.0 (see below), and reduced our accrued liabilities by $0.5 on our consolidated balance sheet as of January 1, 2019 . There was no net impact on our deficit as of January 1, 2019. When measuring our lease obligations, we discounted our lease payments using a weighted-average rate of 4.7% as of January 1, 2019 (representing our incremental borrowing rate as of such date). In computing the initial adjustment, we elected to apply the practical expedients available under IFRS 16, and accordingly did not recognize ROU assets and related lease obligations for low-value leases, or for leases with terms of 12 months or less. We continue to expense the costs of these low-value and short-term leases in our consolidated statement of operations on a straight-line basis over the lease term. In addition, as IFRS 16 did not require us to reassess whether a contract is, or contains, a lease as of the date of initial application, we maintained the lease determinations used under previous accounting rules. The amortization of the ROU assets is recognized as a depreciation charge, and the interest expense on the related lease obligations is recognized as finance costs in our consolidated statement of operations. Prior to the adoption of IFRS 16, we recognized operating lease expenses on a straight-line basis over the lease term generally in cost of sales or SG&A in our consolidated statement of operations. There were no changes to our existing finance leases required by the adoption of IFRS 16, which we continue to capitalize at their commencement (included in property, plant and equipment on our consolidated balance sheet), and include the corresponding liability, net of finance costs, on our consolidated balance sheet (see note 12 ). The following table sets forth the adjustments to our operating lease commitments at December 31, 2018 used to derive the lease obligations recognized on our initial application of IFRS 16 at January 1, 2019 : Operating lease commitments at December 31, 2018 $ 107.4 Discounted using our incremental borrowing rate at January 1, 2019 (13.2 ) Recognition exemption for short-term and low-value leases (1.9 ) Extension options reasonably certain to be exercised 19.7 Lease obligations recognized at January 1, 2019 under IFRS 16 112.0 Lease obligations previously classified as finance leases under IAS 17 10.4 Total lease obligations at January 1, 2019 $ 122.4 SIGNIFICANT ACCOUNTING POLICIES: The accounting policies below are in compliance with IFRS and have been applied consistently to all periods presented in these consolidated financial statements. (a) Basis of measurement: These consolidated financial statements have been prepared primarily on the historical cost basis. Other measurement bases, where used, are described in the applicable notes. (b) Basis of consolidation: These consolidated financial statements include our direct and indirect subsidiaries, all of which are wholly-owned. Any subsidiaries that are formed or acquired during the year are consolidated from their respective dates of formation or acquisition. Inter-company transactions and balances are eliminated on consolidation. (c) Business combinations: We use the acquisition method to account for any business combinations. All identifiable assets and liabilities are recorded at fair value as of the acquisition date. Any goodwill that arises from business combinations is tested annually for impairment (see note 2 (j) ). Potential obligations for contingent consideration and other contingencies are also recorded at fair value as of the acquisition date. We record subsequent changes in the fair value of such potential obligations from the date of acquisition to the settlement date in our consolidated statement of operations. We expense integration costs (for the establishment of business processes, infrastructure and information systems for acquired operations) and acquisition-related consulting and transaction costs as incurred in our consolidated statement of operations. We use judgment to determine the estimates used to value identifiable assets and liabilities, and the fair value of potential obligations, if applicable, at the acquisition date. We may engage third parties to determine the fair value of certain inventory, property, plant and equipment and intangible assets. We use estimates to determine cash flow projections, including the period of expected future benefit, and future growth and discount rates, among other factors, to value intangible assets and contingent consideration. The fair value of acquired tangible assets are measured by applying the market, cost or replacement cost, or the income approach (using discounted cash flows and forecasts by management), as appropriate. (d) Foreign currency translation: The majority of our subsidiaries have a U.S. dollar functional currency, which represents the currency of the primary economic environment in which they operate. For these subsidiaries, we translate monetary assets and liabilities denominated in foreign currencies into U.S. dollars at the period-end exchange rates. We translate non-monetary assets and liabilities denominated in foreign currencies into U.S. dollars at historic rates, and we translate revenue and expenses into U.S. dollars at the average exchange rates prevailing during the month of the transaction. Exchange gains and losses also arise on the settlement of foreign-currency denominated transactions. We recognize foreign currency differences arising on translation in our consolidated statement of operations. For our subsidiaries with a non-U.S. dollar functional currency, we translate assets and liabilities into U.S. dollars using the period-end exchange rates, and we translate revenue and expenses into U.S. dollars at the average exchange rates prevailing during the month of the transaction. We defer gains and losses arising from the translation of these operations in the foreign currency translation account included in accumulated other comprehensive income (loss) (OCI). (e) Cash and cash equivalents: Cash and cash equivalents include cash on account and short-term investments with original maturities of three months or less. These instruments are subject to an insignificant risk of change in fair value over their terms and, as a result, we carry cash and cash equivalents at cost. (f) Inventories: We procure inventory and manufacture based on specific customer orders and forecasts and value our inventory on a first-in, first-out basis at the lower of cost and net realizable value. The cost of our finished goods and work in progress includes direct materials, labor and overhead. We may require valuation adjustments if actual market conditions or demand for our customers' products or services are less favorable than originally projected. The determination of net realizable value involves significant management judgment. We consider factors such as shrinkage, the aging of and future demand for the inventory, and contractual arrangements with customers. We attempt to utilize excess inventory in other products we manufacture or return inventory to the relevant suppliers or customers. We use future sales volume forecasts to estimate excess inventory on-hand. A change to these assumptions may impact our inventory valuation and our gross margins. Should circumstances change, we may adjust our previous write-downs in our consolidated statement of operations in the period a change in estimate occurs. (g) Property, plant and equipment: We carry property, plant and equipment at cost less accumulated depreciation and accumulated impairment losses. Cost consists of expenditures directly attributable to the acquisition of the asset. We capitalize the cost of an asset when the economic benefits associated with that asset are probable and when the cost can be measured reliably. We capitalize the costs of major renovations and we write-off the carrying amount of replaced assets. We expense all other maintenance and repair costs in our consolidated statement of operations as incurred. We do not depreciate land. We recognize depreciation expense on a straight-line basis over the estimated useful life of the asset as follows: Buildings Up to 40 years Building/leasehold improvements Up to 40 years or term of lease Machinery and equipment 3 to 15 years We estimate the useful life of property, plant and equipment based on the nature of the asset, historical experience, expected changes in technology, and the expected duration of related customer programs. When major components of an asset have a significantly different useful life than their primary asset, the components are accounted for and depreciated separately. We review our estimates of residual values, useful lives and the methods of depreciation annually at year end and, if required, adjust for these prospectively. We determine gains and losses on the disposal or retirement of property, plant and equipment by comparing the proceeds from disposal with the carrying amount of the asset and we recognize these gains and losses in our consolidated statement of operations in the period of disposal. Also see note 2(j). (h) Leases: We are the lessee of property, plant and equipment, primarily buildings and machinery. At the inception of a contract, we assess whether an arrangement is, or contains, a lease in accordance with IFRS 16. Where we determine there is a lease under IFRS 16, we recognize an ROU asset (representing our right to use such leased asset) and a related lease obligation on the applicable lease commencement date. An ROU asset is first measured based on the initial amount of the related lease obligation, subject to certain adjustments, if any, and then subsequently measured at such cost less accumulated depreciation and accumulated impairment losses (see note 2(j)). Depreciation expense on an ROU asset is recorded on a straight-line basis over the lease term in cost of sales or SG&A in our consolidated statement of operations, primarily based on the nature and use of the asset. The lease obligation is initially measured at the present value of the unpaid lease payments on the commencement date, discounted using the interest rate implicit in the lease (if readily determinable) or otherwise on our incremental borrowing rate (taking country-specific risks into consideration) on the lease commencement date. We generally use our incremental borrowing rate as the discount rate. The interest expense on the related lease obligation is recognized as finance costs in our consolidated statement of operations. The lease obligation is remeasured when there are adjustments to future lease payments arising from a change in applicable indices or rates, changes in the estimated amount expected to be payable under a residual value guarantee, or if we change our assessments of whether we will exercise an applicable purchase, extension or termination option. Upon any such remeasurement, a corresponding adjustment is made to the carrying amount of the related ROU asset, or is recorded in our consolidated statement of operations if the carrying amount of such ROU asset has been impaired. We expense the costs of the low-value and short-term leases in our consolidated statement of operations on a straight-line basis over the lease term. We capitalize finance leases at their commencement, at the lower of the fair value of the leased asset and the present value of the minimum lease payments (included in property, plant and equipment on our consolidated balance sheet), and include the corresponding liability, net of finance costs, on our consolidated balance sheet. Prior to the adoption of IFRS 16, we recognized operating lease expenses on a straight-line basis over the lease term generally in cost of sales or SG&A in our consolidated statement of operations. (i) Goodwill and intangible assets: Goodwill: We initially record goodwill related to acquisitions on our consolidated balance sheet in the amount of the excess of the fair value of the aggregate consideration paid (including the estimated fair value of any contingent consideration) over the fair value of the identifiable net assets acquired. In subsequent reporting periods, we measure goodwill at cost less accumulated impairment losses, if any. We do not amortize goodwill. For purposes of impairment testing, we allocate goodwill to the CGU, or group of CGUs, that we expect will benefit from the related acquisition. See note 2 (j) , “Impairment of goodwill, intangible assets, property, plant and equipment, and ROU assets.” Intangible assets: We record intangible assets on our consolidated balance sheet at fair value on the date of acquisition. We capitalize intangible assets when the economic benefits associated with the asset are probable and when the cost can be measured reliably. We estimate the useful life of intangible assets based on the nature of the asset, historical experience and the projected period of expected future economic benefits to be provided by the asset. In subsequent reporting periods, we measure intangible assets at cost less accumulated amortization and accumulated impairment losses, if any. We amortize these assets on a straight-line basis over their estimated useful lives as follows: Intellectual property 3 to 5 years Other intangible assets 4 to 15 years Computer software assets 1 to 10 years Intellectual property assets consist primarily of certain non-patented intellectual property and process technology. Other intangible assets consist primarily of customer relationships and contract intangibles. Computer software assets consist primarily of software licenses. We review our estimates of residual values, useful lives and the methods of amortization annually at year end and, if required, adjust for these prospectively. We reflect changes in useful lives on a prospective basis. (j) Impairment of goodwill, intangible assets, property, plant and equipment, and ROU assets: We review the carrying amount of goodwill, intangible assets, property, plant and equipment, and commencing in 2019, ROU assets for impairment whenever events or changes in circumstances (triggering events) indicate that the carrying amount of such assets, or the related CGU or CGUs, may not be recoverable. If any such indication exists, we test the carrying amount of such assets or CGUs for impairment. In addition to an assessment of triggering events during the year, we conduct an annual impairment assessment of CGUs with goodwill in the fourth quarter of each year to correspond with our annual planning cycle (Annual Impairment Assessment). Judgment is required in the determination of: (i) our CGUs, which includes an assessment of whether the relevant asset, or group of assets, largely generates independent cash inflows, and an evaluation of how management monitors the business operations pertaining to such asset, or asset group; and (ii) whether events or changes in circumstances during the year are indicators that a review for impairment should be conducted. We recognize an impairment loss when the carrying amount of an asset, CGU or group of CGUs exceeds its recoverable amount. The recoverable amount of an asset, CGU or group of CGUs is measured as the greater of its expected value-in-use and its estimated fair value less costs of disposal. The process of determining the recoverable amount is subjective and requires management to exercise significant judgment in estimating future growth, profitability, discount and terminal growth rates, the fair value of any real property, and in projecting future cash flows, among other factors. Determination of our expected value-in-use is based on a discounted cash flow analysis of the relevant asset, CGU or group of CGUs. The process of determining the estimated fair value less costs of disposal requires valuations and use of appraisals. Future events and changing market conditions may impact our assumptions as to prices, costs or other factors that may result in changes in our estimates of future cash flows. Where applicable, we engage independent brokers to obtain market prices to estimate our real property and other asset values. We recognize impairment losses in our consolidated statement of operations. If it is determined that an impairment exists, we first allocate the impairment losses to the relevant CGU (or group of CGUs) to reduce the carrying amount of its (or their) goodwill, and then to reduce the carrying amount of other assets in such CGU (or group of CGUs), generally on a pro-rata basis. See notes 7, 8 and 9 . We do not reverse impairment losses for goodwill in future periods. We reverse impairment losses for property, plant and equipment, ROU assets and intangible assets if the losses we recognized in prior periods no longer exist or have decreased as a result of changes in circumstances. At each reporting date, we review for indicators that could change the estimates we used to determine the recoverable amount of the relevant assets. The amount of the reversal will be limited to the carrying amount that would have been determined, net of depreciation or amortization, had we recognized no impairment loss in prior periods. (k) Provisions: We recognize a provision for legal or constructive obligations arising from past events when the amount can be reliably estimated and it is probable that an outflow of resources will be required to settle an obligation. The nature and type of provisions vary and management judgment is required to determine the extent of an obligation and whether the outflow of resources is probable. At the end of each reporting period, we evaluate the appropriateness of the remaining balances. We may require adjustments to the recorded amounts to reflect actual experience or changes in estimates in future periods. Restructuring: We incur restructuring charges relating to workforce reductions, site consolidations, and costs associated with businesses we are downsizing or exiting. Our restructuring charges include employee severance and benefit costs, consultant costs, gains, losses or impairments related to owned sites and equipment we no longer use and which are available for sale, impairment of related intangible assets, and costs or impairments related to leased sites and equipment we no longer use. The recognition of restructuring charges requires management to make certain judgments and estimates regarding the nature, timing and amounts associated with our restructuring actions. Our assumptions include the timing of employees to be terminated, the measurement of termination costs, any anticipated sublease recoveries from exited sites, and the timing of disposition and estimated fair values less costs of disposal for assets we no longer use and which are available for sale. We develop detailed plans and record termination costs in the period the employees are informed of their termination. For owned sites and equipment that are no longer in use and are available for sale, we recognize an impairment loss based on their estimated fair value less costs of disposal, with fair value estimated based on market prices for similar assets. We may engage third parties to assist in the determination of the estimated fair values less costs of disposal for these assets. For leased sites that we intend to exit in connection with restructuring activities, we assess the recoverability of our ROU assets, and write down such assets (recorded as restructuring charges) if the carrying value exceeds any estimated sublease recoveries. To estimate future sublease recoveries, we may engage independent brokers to determine the estimated tenant rents we can expect to realize. At the end of each reporting period, we evaluate the appropriateness of our restructuring charges and balances. Adjustments to the recorded amounts may be required to reflect actual experience or changes in estimates for future periods. See note 16 (a) . Legal and other contingencies: In the normal course of our operations, we may be subject to lawsuits, investigations and other claims, including, but not limited to, environmental, labor, product, customer disputes, and other matters. The filing of a suit or formal assertion of a claim does not automatically trigger a requirement to record a provision. We record a provision for loss contingencies, including legal claims, based on management’s estimate of the probable outcome. Judgment is required when there is a range of possible outcomes. Management considers the degree of probability of the outcome and the ability to make a reasonable estimate of the loss. We may also use third party advisors in making our determination. The ultimate outcome, including the amount and timing of any payments required, may vary significantly from our original estimates. Potential material legal and other material contingent obligations that have not been recognized as provisions, as the outcome is remote or not probable, or the amount cannot be reliably estimated, are disclosed as contingent liabilities. See note 24 . Warranty: We offer product and service warranties to our customers. We record a provision for future warranty costs based on management’s estimate of probable claims under these warranties. In determining the amount of the provision, we consider several factors including the terms of the warranty (which vary by customer, product or service), the current volume of products sold or services rendered during the warranty period, and historical warranty information. We review and adjust these estimates as necessary to reflect our experience and new information. The amount and aging of our provision will vary depending on various factors including the length of the warranty offered, the remaining life of the warranty and the extent and timing of warranty claims. We classify the portion of our warranty provision for which payment is expected in the next 12 months as current, and the remainder as non-current. (l) Employee benefits: Pension and non-pension post-employment benefits: We classify pension and non-pension post-employment benefits as either defined contribution plans or defined benefit plans. Under defined contribution plans, our obligation is to make a fixed contribution to a separate entity. The related investment risk is borne by the employee. We recognize our obligations to make contributions to defined contribution plans as an employee benefit expense in our consolidated statement of operations in the period the employee services are rendered. Under defined benefit plans, our obligation is to provide an agreed-upon benefit to specified plan participants. We remain exposed to the actuarial and investment risks with respect to defined benefit plans. Our obligation is actuarially determined using the projected unit credit method, based on service and management’s estimates. Actuarial valuations require management to make certain judgments and estimates relating to salary escalation, compensation levels at the time of retirement, retirement ages, the discount rate used in measuring the net interest on the net defined benefit asset or liability, and expected healthcare costs (as applicable). These actuarial assumptions could change from period-to-period and actual results could differ materially from the estimates originally made by management. We evaluate our assumptions on a regular basis, taking into consideration current market conditions and historical data. Market driven changes may affect the actual rate of return on plan assets compared to our assumptions, as well as our discount rates and other variables which could cause actual results to differ materially from our estimates. Changes in assumptions could impact our defined benefit pension plan valuations and our future defined benefit pension expense and required funding. Our obligation for each defined benefit plan consists of the present value of the defined benefit obligation less the fair value of plan assets, and is presented on a net basis on our consolidated balance sheet. When the actuarial calculation results in a benefit, the asset we recognize is restricted to the present value of economic benefits available in the form of future refunds from the plan or reductions in future contributions to the plan. To calculate the present value of economic benefits, we also consider any minimum funding requirements that apply to the plan. An economic benefit is available if it is realizable during the life of the plan, or on settlement of the plan liabilities. We recognize past service costs or credits arising from plan amendments, whether vested or unvested, immediately in our consolidated statement of operations. We determine the net interest expense (income) on the net defined benefit liability (asset) for each year by applying the discount rate used to measure the defined benefit obligation at the beginning of the year to the net defined benefit liability (asset) position, taking into account any changes in the net defined benefit liability (asset) during the year as a result of contributions and benefit payments. Net interest expense and other expenses related to defined benefit plans are recognized in our consolidated statement of operations. The difference between the interest income on plan assets and the actual net return on plan assets is included in the re-measurement of the net defined benefit liability (asset). We recognize actuarial gains and losses on plan assets or obligations, as well as any year over year change in the impairment of the balance sheet position in OCI and we reclassify the amounts to deficit. Curtailment gains or losses may arise from significant changes to a plan. We record curtailment gains or losses in our consolidated statement of operations when the curtailment occurs. To mitigate the actuarial and investment risks of our defined benefit pension plans, we from time to time purchase annuities (using existing plan assets) from third party insurance companies for certain, or all, plan participants. The purchase of annuities by the pension plan substantially hedges the financial risks associated with our pension obligations. Where the annuities are purchased on behalf of, and held by the pension plan, the relevant employer retains the ultimate responsibility for the payment of benefits to plan participants, and we retain the pension assets and liabilities on our consolidated balance sheet. Our annuity purchases have resulted (and future annuity purchases may result) in losses, due to a reduction in the value of the plan assets relative to plan obligations as of the date of the annuity purchase. We record these non-cash losses in OCI on our consolidated balance sheet and simultaneously reclassify such amounts to deficit in the same period. Alternatively, where we purchase annuities from insurance companies on behalf of applicable plan participants with the intention of winding-up the relevant plan in the future (with the expectation of transferring the annuities to the individual plan members), the insurance company assumes responsibility for the payment of benefits to the relevant plan participants once the wind-up is complete. In this case, settlement accounting is applied to the purchase of the annuities and the loss (if any) is recorded in other charges in our consolidated statement of operations. In addition, both the pension assets and liabilities will be removed from our consolidated balance sheet once the wind-up of the plan is complete. Stock-based compensation (SBC): We generally grant performance share units (PSUs) and restricted share units (RSUs), and from time to time grant stock options, to employees under our SBC plans. Stock options and RSUs vest in installments over the vesting period. Stock options generally vest 25% per year over a four -year period, and RSUs generally vest one-third per year over a three -year period. We treat each installment under a grant of stock options and RSUs as a separate grant in determining the compensation expense. PSUs vest at the end of their respective terms, generally three years from the grant date, to the extent that specified performance conditions have been met. Stock options: Stock options are exercisable for SVS. We recognize the grant date fair value of stock options granted to employees as compensation expense in our consolidated statement of operations, with a corresponding charge to contributed surplus on our consolidated balance sheet, over the vesting |
Acquisitions
Acquisitions | 12 Months Ended |
Dec. 31, 2019 | |
Business Combinations1 [Abstract] | |
Acquisitions | ACQUISITIONS: In April 2018, we completed the acquisition of U.S.-based Atrenne Integrated Solutions, Inc. (Atrenne), a designer and manufacturer of ruggedized electromechanical solutions, primarily for military and commercial aerospace applications, with operations in Minnesota and Massachusetts. The final purchase price for Atrenne was $140.3 , net of cash acquired. The original purchase price was reduced by $1.4 in connection with a working capital adjustment finalized in the first quarter of 2019 (Q1 2019). The purchase price was financed with borrowings under our then-applicable credit facility. The goodwill from the acquisition (attributable to our ATS segment) arose primarily from the specific knowledge and capabilities of the acquired workforce and expected synergies from the combination of our operations, and was not tax deductible. In November 2018, we completed the acquisition of U.S.-based Impakt Holdings, LLC (Impakt), a highly-specialized, vertically integrated company providing manufacturing solutions for leading original equipment manufacturers in the display and semiconductor industries, as well as other markets requiring complex fabrication services, with operations in California and South Korea. The final purchase price for Impakt was $324.1 , net of cash acquired. The original purchase price was reduced by $1.3 in connection with a working capital adjustment finalized in the third quarter of 2019. The purchase price was financed with borrowings under our current credit facility. The goodwill from the acquisition (attributable to our ATS segment), arose primarily from the specific knowledge and capabilities of the acquired workforce and expected synergies from the combination of our operations, and was not tax deductible. Acquired assets and liabilities are recorded on our consolidated balance sheet at their fair values as of the date of acquisition. Details of our final purchase price allocation for the Atrenne and Impakt acquisitions are as follows: Atrenne Impakt Current assets*, net of cash acquired ($1.1 for Atrenne and $5.9 for Impakt) $ 31.5 $ 49.2 Property, plant and equipment and other long-term assets 7.8 20.6 Customer intangible assets and computer software assets 51.0 219.3 Goodwill 62.6 112.6 Current liabilities (8.5 ) (25.8 ) Deferred income taxes and other-long-term liabilities (4.1 ) (51.8 ) $ 140.3 $ 324.1 * In connection with our purchase of Atrenne, we recorded a $1.6 fair value adjustment to write up the value of the acquired inventory as of the acquisition date, representing the difference between the inventory's cost and its fair value. During the second quarter of 2018, we recognized the full $1.6 fair value adjustment through cost of sales, as all such acquired inventory was sold during that quarter. We engaged third-party consultants to provide valuations of certain inventory, property, plant and equipment and intangible assets in connection with our purchases of Atrenne and Impakt. The fair value of the acquired tangible assets was measured based on their value in-use, by applying the market (sales comparison, brokers' quotes), cost or replacement cost, or the income (discounted cash flow) approach, as deemed appropriate. The valuation of the intangible assets by the third-party consultants was primarily based on the income approach using a discounted cash flow model and forecasts based on management's subjective estimates and assumptions. Various Level 2 and 3 data inputs of the fair value measurement hierarchy (described in note 21 ) were used in the valuation of these assets. Annual amortization of intangible assets increased by approximately $6 as a result of the Atrenne acquisition and approximately $15 as a result of the Impakt acquisition. We incur consulting, transaction and integration costs relating to potential and completed acquisitions, including with respect to Atrenne and Impakt. We also incurred charges related to the subsequent re-measurement of indemnification assets recorded in connection with our Impakt acquisition of $2.2 in 2019 ( 2018 and 2017 — nil). Collectively, these costs and charges are referred to as Acquisition Costs. During 2019, we recorded Acquisition Costs of $3.9 ( 2018 — $11.0 ; 2017 — $4.5 ) in other charges in our consolidated statement of operations. |
Accounts Receivable
Accounts Receivable | 12 Months Ended |
Dec. 31, 2019 | |
Financial Instruments [Abstract] | |
Accounts Receivable | ACCOUNTS RECEIVABLE: Accounts receivable (A/R) sales program and supplier financing programs (SFPs): Our agreement to sell up to $250.0 in A/R on an uncommitted basis (subject to pre-determined limits by customer) to two third-party banks was scheduled to expire in November 2019, but was extended to January 15, 2020 pursuant to its terms, at which time it expired. Based on a review of our requirements at that time, we reduced the sales program limit from $250.0 to $200.0 during the extension period. In addition, we participate in two SFPs ( one with a CCS segment customer, and commencing in the fourth quarter of 2019 (Q4 2019), one with an ATS segment customer), pursuant to which we sell A/R from the relevant customer to third-party banks on an uncommitted basis. At December 31, 2019 , we sold $90.6 of A/R under our A/R sales program ( December 31, 2018 — $130.0 ) and $50.4 of A/R under the SFPs ( December 31, 2018 — $50.0 ). We utilize the SFPs to substantially offset the effect of extended payment terms required by these customers on our working capital for the period. Under our previous A/R sales program (and the current one described below), we collect cash from our customers, and remit the cash to the banks once collected. Under our SFPs, the third-party banks collect the relevant receivables directly from the customers. To replace our previous A/R sales program, and based on a recent review of our requirements, we entered into an agreement in March 2020 with a new third-party bank to sell up to $235.0 in A/R (based on currently approved obligors) on an uncommitted basis, subject to pre-determined limits by customer. This agreement provides for a one -year term, with automatic annual one -year extensions, and may be terminated at any time by the bank or by us upon 3 month’s prior notice, or by the bank upon specified defaults. The A/R sold under the foregoing programs are de-recognized from our A/R balance and removed from our consolidated balance sheet, and the proceeds are reflected as cash provided by operating activities in our consolidated statement of cash flows. Upon sale, we assign the rights to the A/R to the banks. We pay discount charges which we record as finance costs in our consolidated statement of operations. Contract assets: At December 31, 2019 , our A/R balance included $226.7 of contract assets recognized as revenue under IFRS 15, Revenue from Contracts with Customers ( December 31, 2018 — $267.8 ). |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2019 | |
Inventories [Abstract] | |
Inventories | INVENTORIES: Inventories are comprised of the following: December 31 2018 2019 Raw materials $ 948.8 $ 868.3 Work in progress 101.5 77.1 Finished goods 39.6 46.8 $ 1,089.9 $ 992.2 We record inventory provisions, net of valuation recoveries, in cost of sales. Inventory provisions reflect write-downs in the value of our inventory to net realizable value, and valuation recoveries primarily reflect realized gains on the disposition of previously written-down inventory. During 2019 , we recorded net inventory provisions of $4.1 ( 2018 — $13.5 ; 2017 — $3.3 ), comprised of new provisions (approximately two-thirds of which related to specified aged inventory in our ATS segment), which were partially offset by $5.8 of valuation recoveries (relatively equal between our two segments) recorded in Q4 2019. Our net inventory provisions for 2018 were primarily due to increases in our overall aged inventory levels as compared to 2017, more than half of which related to customers in our ATS segment, comprised of new provisions which were partially offset by $4.6 of valuation recoveries recorded in the fourth quarter of 2018. We regularly review our estimates and assumptions used to value our inventory through analysis of historical performance. Certain of our contracts provide for customer cash deposits to cover our risk of excess and obsolete inventory and/or for working capital requirements. Such deposits as of December 31, 2019 (primarily covering our aged inventory) totaled $121.9 ( December 31, 2018 — $57.9 ), and were recorded in accrued and other current liabilities on our consolidated balance sheet. |
Assets Classified As Held For S
Assets Classified As Held For Sale | 12 Months Ended |
Dec. 31, 2019 | |
Non-current Assets Held For Sale And Discontinued Operations [Abstract] | |
Assets Classified As Held For Sale | ASSETS CLASSIFIED AS HELD FOR SALE: As a result of previously announced restructuring actions, we have reclassified certain assets as held for sale. These assets were reclassified at the lower of their carrying value and estimated fair value less costs of disposal at the time of such reclassification. At December 31, 2019 , we had $0.7 of assets classified as held for sale, consisting of equipment in Europe ( December 31, 2018 — $27.4 , consisting of land and buildings in Europe and Canada). The decrease from 2018 resulted from: (i) the sale of our Toronto real property in March 2019, and (ii) the reclassification of the land and building we own in Europe (totaling $12.9 ) to property, plant and equipment as of December 31, 2019, as such assets no longer meet the criteria required to be classified as held for sale on our consolidated balance sheet. See note 7 . |
Property, Plant and Equipment
Property, Plant and Equipment | 12 Months Ended |
Dec. 31, 2019 | |
Property, plant and equipment [abstract] | |
Property, Plant and Equipment | PROPERTY, PLANT AND EQUIPMENT: Property, plant and equipment are comprised of the following: 2018 Cost Accumulated Net Book Land $ 26.8 $ 12.0 $ 14.8 Buildings including improvements 375.5 218.0 157.5 Machinery and equipment 781.2 588.2 193.0 $ 1,183.5 $ 818.2 $ 365.3 2019 Cost Accumulated Net Book Land $ 35.6 $ 12.0 $ 23.6 Buildings including improvements 351.7 197.1 154.6 Machinery and equipment 720.8 544.0 176.8 $ 1,108.1 $ 753.1 $ 355.0 The following table details the changes to the net book value of property, plant and equipment for the years indicated: Note Land Buildings Machinery Total Balance — January 1, 2018 $ 11.1 $ 141.6 $ 171.2 $ 323.9 Additions — 25.4 62.3 87.7 Acquisitions through business combinations 3 3.6 10.8 13.9 28.3 Depreciation — (20.4 ) (53.3 ) (73.7 ) Write down of assets and other disposals — — (0.9 ) (0.9 ) Foreign exchange and other 0.1 0.1 (0.2 ) — Balance — December 31, 2018 (i) 14.8 157.5 193.0 365.3 Transferred from assets held for sale 6 11.2 1.7 — 12.9 Additions — 21.7 55.1 76.8 Adjustment through business combinations (ii) 3 — — (0.3 ) (0.3 ) Depreciation — (20.1 ) (53.2 ) (73.3 ) Write down of assets and other disposals (iii) (iv) (2.5 ) (6.1 ) (17.6 ) (26.2 ) Foreign exchange and other 0.1 (0.1 ) (0.2 ) (0.2 ) Balance — December 31, 2019 (i) $ 23.6 $ 154.6 $ 176.8 $ 355.0 (i) The net book value of property, plant and equipment at December 31, 2019 included $7.5 ( December 31, 2018 — $12.8 ) of leases financed through third parties. See note 12 for the future minimum lease payments under these leases. (ii) Adjustments were made in 2019 to reflect the fair value of assets acquired in connection with the Impakt acquisition. (iii) Includes the disposal of our Toronto real property in March 2019. See " Toronto Real Property and Related Transactions " below. (iv) Includes the write-down of equipment primarily related to our capital equipment business and other disengaged programs (recorded as restructuring charges). See note 16(a). We review the carrying amount of property, plant and equipment for impairment whenever events or changes in circumstances (triggering events) indicate that the carrying amount of such assets (or the related CGU or CGUs) may not be recoverable. If any such indication exists, we test the carrying amount of such assets or CGUs for impairment. We did not identify any triggering event during the course of 2017 to 2019 indicating that the carrying amount of such assets or CGUs may not be recoverable. However, we recorded non-cash restructuring charges: (i) in 2017, to write down our then-remaining solar panel manufacturing equipment; (ii) in 2018, to reflect losses on the sale of surplus equipment; and (iii) in 2019, to write-down certain equipment primarily related to our capital equipment business and disengaged programs, in each case in connection with our restructuring activities. See note 16 (a) . Toronto Real Property and Related Transactions: On July 23, 2015, we entered into an agreement of purchase and sale (Property Sale Agreement) to sell our real property located in Toronto, Ontario, which included the site of our corporate headquarters and our Toronto manufacturing operations, to a special purpose entity (the Property Purchaser), a consortium of four real estate partnerships (approximately 27% of the interests of which are held by a privately-held partnership in which Mr. Gerald Schwartz (a controlling shareholder of Celestica) has a material interest; and approximately 25% of the interests of which are held by a partnership in which Mr. Schwartz has a non-voting interest). In September 2018, the Property Sale Agreement was assigned to a new purchaser (Assignee). The Property Purchaser holds a 5% non-voting interest in the Assignee. On March 7, 2019, we completed the sale of our Toronto real property and received total additional proceeds of $113.0 (Toronto Proceeds), including a high density bonus and an early vacancy incentive related to the temporary relocation of our corporate headquarters. We recorded a gain of $102.0 (Property Gain) on the sale in other charges (recoveries) during Q1 2019 (see note 16 (c)). No net tax impact was recorded from this sale, as the gain was offset by the utilization of previously unrecognized tax losses. See note 20 . We completed the relocation of our Toronto manufacturing operations in February 2019 (under a long-term lease executed in November 2017). We also entered into a 10 -year lease in March 2019 with the Assignee for our new corporate headquarters, to be built by the Assignee on the site of our former location. In connection therewith, we completed the temporary relocation of our corporate headquarters in the second quarter of 2019 (Q2 2019) (pursuant to a 3 -year lease executed in September 2018) while our new corporate headquarters is under construction. In connection with such relocations, we capitalized building improvements and equipment costs related to our new manufacturing site ( $1.2 in 2019; approximatel y $15 in 2018; nil in 2017) and our temporary corporate headquarters ( $5.0 in 2019; nil prior thereto), and we incurred transition-related costs ( $3.8 in 2019; $13.2 in 2018; $1.6 in 2017) which we recorded in other charges. Transition costs are comprised of direct relocation and duplicate costs (such as rent expense, utility costs, depreciation charges, and personnel costs) incurred during the transition periods, as well as cease-use costs incurred in connection with idle or vacated portions of the relevant premises that we would not have incurred but for these relocations. |
Right-Of-Use Assets (Notes)
Right-Of-Use Assets (Notes) | 12 Months Ended |
Dec. 31, 2019 | |
Right-Of-Use Assets [Abstract] | |
Right-of-use assets | RIGHT-OF-USE ASSETS: The following table details the changes to the net book value of ROU assets during 2019: Land Buildings Other Total Balance — January 1, 2019 $ 7.3 $ 103.5 $ 0.7 $ 111.5 Additions — 27.5 2.1 29.6 Depreciation (0.6 ) (31.6 ) (0.3 ) (32.5 ) Write down of assets and lease terminations (i) — (4.7 ) — (4.7 ) Foreign exchange and other 0.3 — (0.1 ) 0.2 Balance — December 31, 2019 $ 7.0 $ 94.7 $ 2.4 $ 104.1 (i) During 2019, we recorded $1.0 (as restructuring charges) to write down certain ROU assets in connection with restructuring actions pertaining to vacated properties, resulting in part from sublet recoveries that were lower than the carrying value of the related leases. See note 16 (a). We also terminated several leases in connection with restructuring actions and de-recognized $3.7 of ROU assets in connection therewith. We review the carrying amount of ROU assets for impairment whenever events or changes in circumstances (triggering events) indicate that the carrying amount of such assets (or the related CGU or CGUs) may not be recoverable. If any such indication exists, we test the carrying amount of such assets or CGUs for impairment. We did not identify any triggering event during the course of 2019 indicating that the carrying amount of our ROU assets or related CGUs may not be recoverable . However, we recorded non-cash restructuring charges in 2019 to write-down certain ROU assets related to vacated properties in connection with actions pertaining to our cost efficiency initiative. See note 16 (a). |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 12 Months Ended |
Dec. 31, 2019 | |
Intangible Assets [Abstract] | |
Goodwill and Intangible Assets | GOODWILL AND INTANGIBLE ASSETS: Goodwill and intangible assets are comprised of the following: 2018 Cost Accumulated Net Book Goodwill $ 253.8 $ 55.4 $ 198.4 Intellectual property $ 111.3 $ 111.3 $ — Other intangible assets 508.0 238.2 269.8 Computer software assets 290.1 276.3 13.8 $ 909.4 $ 625.8 $ 283.6 2019 Cost Accumulated Net Book Goodwill $ 253.7 $ 55.4 $ 198.3 Intellectual property $ 111.3 $ 111.3 $ — Other intangible assets 503.2 260.9 242.3 Computer software assets 291.1 282.1 9.0 $ 905.6 $ 654.3 $ 251.3 The following table details the changes to the net book value of goodwill and intangible assets for the years indicated: Note Goodwill Other Computer Total Balance — January 1, 2018 $ 23.2 $ 10.4 $ 11.2 $ 44.8 Additions — — 3.3 3.3 Acquisitions through business combinations 3 175.2 271.0 3.0 449.2 Amortization — (11.6 ) (3.8 ) (15.4 ) Foreign exchange and other — — 0.1 0.1 Balance — December 31, 2018 198.4 269.8 13.8 482.0 Additions — — 1.8 1.8 Adjustment through business combinations (i) 3 — (3.0 ) (0.7 ) (3.7 ) Amortization — (24.6 ) (5.0 ) (29.6 ) Write down of assets — — (0.8 ) (0.8 ) Foreign exchange and other (0.1 ) 0.1 (0.1 ) (0.1 ) Balance — December 31, 2019 $ 198.3 $ 242.3 $ 9.0 $ 449.6 (i) Adjustments were made in 2019 to reflect the fair value of assets acquired in connection with the Impakt acquisition. We review the carrying amount of goodwill and intangible assets for impairment whenever events or changes in circumstances (triggering events) indicate that the carrying amount of such assets (or the related CGU or CGUs) may not be recoverable. If any such indication exists, we test the carrying amount of such assets or CGUs for impairment. In addition to an assessment of triggering events during the year, we conduct an Annual Impairment Assessment of CGUs with goodwill in the fourth quarter of each year. We recorded no impairment charges against goodwill or intangible assets during 2017 to 2019 , or as a result of our 2017, 2018 or 2019 Annual Impairment Assessments. However, see note 16(a) for a discussion of non-cash restructuring charges recorded in 2017 to 2019 to write-down certain equipment and ROU assets in connection with our restructuring activities. For our Annual Impairment Assessments, we used cash flow projections based primarily on our plan for the following year and, to a lesser extent, on our three-year strategic plan and other financial projections. Our plans, which are primarily based on financial projections submitted by our subsidiaries along with input from our customer teams, are reviewed by various levels of management as part of our annual planning cycle. The plan for 2020 (used for our 2019 Annual Impairment Assessment) was approved by management and presented to our Board of Directors in December 2019 . The process of determining the recoverable amount of a CGU is subjective and requires management to exercise significant judgment in estimating future growth, profitability, discount and terminal growth rates, among other factors. The assumptions used in our 2019 Annual Impairment Assessment were determined based on past experiences adjusted for expected changes in future conditions. Where applicable, we also engaged independent brokers to obtain market prices to estimate our real property and other asset values. For our 2019 Annual Impairment Assessment, we used cash flow projections over a 5 -year period, and applied a perpetuity growth rate of 2% thereafter (consistent with long-term inflation guidance). Our goodwill balance at December 31, 2019 was $198.3 ( December 31, 2018 — $198.4 ; December 31, 2017 — $23.2 ). Our capital equipment CGU consists of $112.5 of goodwill attributable to our acquisition of Impakt in November 2018 and $19.5 attributable to prior acquisitions. Our A&D CGU consists of goodwill of $3.7 attributable to our November 2016 acquisition of Lorenz, Inc. and Suntek Manufacturing Technologies, SA de CV, collectively known as Karel Manufacturing. Our Atrenne CGU consists of goodwill of $62.6 attributable to our April 2018 Atrenne acquisition. See note 3 for further details. We used the following assumptions for purposes of our Annual Impairment Assessments of goodwill for the periods shown: Assumption Capital equipment CGU A&D CGU Atrenne CGU Annual revenue growth rate (1) 2019 — 13% over 5 year period; 2019 — modest growth over 5 year period; 2019 — 4% over 5 year period; Average annual margins 2019 — above company margins; 2019 — slightly above company margins; 2019 — above company margins; Discount rate 2019 —13%; 2019 — 10%; 2019 — 10%; (2) 2018 — 13%; (1) Supported by new business awarded in recent years, the expectation of future new business awards, and growth due to our acquisitions. (2) The decrease in the discount rate used for our Atrenne CGU is supported by the overall decrease in our weighted average cost of capital, as well as the overall strong performance of this business since its acquisition. Although our capital equipment CGU generated a net operating loss in 2019, our assumptions for this CGU for our 2019 Annual Impairment Assessment reflect our expectation of market recovery in the capital equipment business. Future growth in revenue and margins are supported by new business awarded recently, near-term customer forecasts, improved demand and performance commencing in Q4 2019, assumptions for additional future program wins based on our current revenue pipeline, margin improvements based on restructuring actions completed during 2019, and external industry outlooks. Future events and market conditions may impact our assumptions as to prices, costs or other factors that may result in changes to our estimates of future cash flows. Failure to realize the assumed revenues at an appropriate profit margin of a CGU could result in impairment losses in such CGU in future periods, especially with respect to our capital equipment CGU . |
Other Non-Current Assets
Other Non-Current Assets | 12 Months Ended |
Dec. 31, 2019 | |
Subclassifications of assets, liabilities and equities [abstract] | |
Other Non-Current Assets | OTHER NON-CURRENT ASSETS: December 31 Note 2018 2019 Net pension assets 19 $ 4.5 $ 5.1 Land rights 10.1 9.7 Deferred investment costs 2.9 1.9 Deferred financing costs 2.1 2.2 Other 10.6 7.5 $ 30.2 $ 26.4 |
Provisions
Provisions | 12 Months Ended |
Dec. 31, 2019 | |
Other Provisions, Contingent Liabilities And Contingent Assets [Abstract] | |
Provisions | PROVISIONS: Our provisions include restructuring, warranty, legal and other provisions. We have included a description of our restructuring, warranty and legal provisions in note 2 (k) . We include details of our restructuring provision in note 16 (a) . The following chart details the changes in our provisions for the year indicated: Restructuring Warranty Legal (i) Other (ii) Total Balance — December 31, 2018 $ 10.3 $ 18.7 $ 1.1 $ 7.5 $ 37.6 Provisions 28.9 11.2 — 0.6 40.7 Reversal of prior year provisions (iii) (0.8 ) (3.0 ) — (0.3 ) (4.1 ) Payments/usage (26.5 ) (5.0 ) — (0.4 ) (31.9 ) Accretion, foreign exchange and other (0.7 ) 0.2 (0.1 ) 0.2 (0.4 ) Balance — December 31, 2019 $ 11.2 $ 22.1 $ 1.0 $ 7.6 $ 41.9 Current $ 11.2 $ 13.5 $ 1.0 $ 0.4 $ 26.1 Non-current (iv) — 8.6 — 7.2 15.8 December 31, 2019 $ 11.2 $ 22.1 $ 1.0 $ 7.6 $ 41.9 (i) Legal represents our aggregate provisions recorded for various legal actions based on our estimates of the likely outcomes. (ii) Other represents our asset retirement obligations relating to properties that we currently lease. (iii) During 2019 , we reversed prior year warranty provisions as a result of expired warranties. (iv) Non-current balances are included in provisions and other non-current liabilities on our consolidated balance sheet. At the end of each reporting period, we evaluate the appropriateness of our provisions, and adjustments may be made to reflect actual experience or changes in our estimates. |
Credit Facilities and Lease Obl
Credit Facilities and Lease Obligations | 12 Months Ended |
Dec. 31, 2019 | |
Financial Instruments [Abstract] | |
Credit Facilities and Lease Obligations | CREDIT FACILITIES AND LEASE OBLIGATIONS: In June 2018, we entered into an $800.0 credit agreement (Credit Facility) with Bank of America, N.A., as Administrative Agent, and the other lenders party thereto, which provides for a $350.0 term loan (Initial Term Loan) that matures in June 2025, and a $450.0 revolving credit facility (Revolver) that matures in June 2023. In November 2018, we utilized the accordion feature under our Credit Facility to add an incremental term loan of $250.0 (Incremental Term Loan), maturing in June 2025. The Initial Term Loan and the Incremental Term Loan are collectively referred to as the Term Loans. Prior to execution of the Credit Facility, we were party to a credit facility (Prior Facility) that consisted of a $300.0 revolver (Prior Revolver) and a $250.0 term loan (Prior Term Loan). Our Prior Facility is described in note 12 to our 2017 audited consolidated financial statements. During Q1 2019, we borrowed $48.0 under the Revolver, primarily to fund share repurchases (see note 13 ), and later during that quarter, repaid $110.0 of the outstanding amount under the Revolver, using the proceeds from the sale of our Toronto real property (see note 7 ). During the second and third quarters of 2019, we repaid an aggregate of $97.0 of the amount outstanding under the Revolver. During the second quarter of 2018 (Q2 2018), we borrowed $163.0 under the Prior Revolver, primarily to fund the Atrenne acquisition (see note 3) and for working capital requirements. We repaid the then-outstanding amounts under the Prior Revolver ( $163.0 ) and the Prior Term Loan ( $175.0 ) in June 2018 using proceeds from the Initial Term Loan. Our Prior Facility was terminated upon such repayments. During the third quarter of 2018, we borrowed $55.0 under the Revolver for working capital purposes. During the fourth quarter of 2018, we borrowed $339.5 under the Revolver to fund the Impakt acquisition (see note 3). The net proceeds of the Incremental Term Loan were used to repay $245.0 of the outstanding amounts under the Revolver. We made aggregate scheduled principal repayments of $6.0 under the Term Loans in 2019 (2018 — principal repayments of $12.5 under the Prior Term Loan and $1.7 under the Initial Term Loan). The Initial Term Loan requires quarterly principal repayments of $0.875 , commencing September 30, 2018, and the Incremental Term Loan requires quarterly principal repayments of $0.625 , commencing March 31, 2019, and in each case a lump sum repayment of the remainder outstanding at maturity. Commencing in 2020, we are also required to make an annual prepayment ( $107.0 in 2020) of outstanding obligations under the Credit Facility (applied first to the Term Loans, then to the Revolver, in the manner set forth in the Credit Facility) ranging from 0% — 50% (based on a defined leverage ratio) of specified excess cash flow (as defined in the Credit Facility) for the prior fiscal year. The Toronto Proceeds (note 7) were included in the determination of excess cash flow for 2019. In addition, prepayments of outstanding obligations under the Credit Facility (applied as described above) may also be required in the amount of specified net cash proceeds received above a specified annual threshold (including proceeds from the disposal of certain assets, but excluding the Toronto Proceeds). Except under specified circumstances, and subject to the payment of breakage costs (if any), we are generally permitted to make voluntary prepayments of outstanding amounts under the Revolver and the Term Loans without any other premium or penalty. Repaid amounts on the term loans may not be re-borrowed. The Credit Facility has an accordion feature that allows us to increase the term loans and/or revolving loan commitments thereunder by approximately $110 , plus an unlimited amount to the extent that a specified leverage ratio on a pro forma basis does not exceed specified limits, in each case on an uncommitted basis and subject to the satisfaction of certain terms and conditions. The Revolver also includes a $50.0 sub-limit for swing line loans, providing for short-term borrowings up to a maximum of ten business days, as well as a $150.0 sub-limit for letters of credit, in each case subject to the overall Revolver credit limit. The Revolver permits us and certain designated subsidiaries to borrow funds (subject to specified conditions) for general corporate purposes, including for capital expenditures, certain acquisitions, and working capital needs. Borrowings under the Revolver bear interest at LIBOR, Canadian Prime or Base Rate (each as defined in the Credit Facility) plus a specified margin, or in the case of any bankers' acceptance, at the B/A Discount Rate (as defined in the Credit Facility). The margin for borrowings under the Revolver ranges from 0.75% to 2.5% , and commitment fees range between 0.35% and 0.50% , in each case depending on the rate we select and our consolidated leverage ratio. The Initial Term Loan currently bears interest at LIBOR plus 2.125% . The Incremental Term Loan currently bears interest at LIBOR plus 2.5% . The Credit Facility provides that when the Administrative Agent, the majority of lenders or the Company determines that LIBOR is unavailable or being replaced, the Administrative Agent and the Company may amend the underlying credit agreement to reflect a successor rate. Once LIBOR becomes unavailable, if no successor rate has been established, loans under the Credit Facility will convert to Base Rate loans. We are required to comply with certain restrictive covenants under the Credit Facility, including those relating to the incurrence of certain indebtedness, the existence of certain liens, the sale of certain assets (excluding real property then held for sale), specified investments and payments, sale and leaseback transactions, and certain financial covenants relating to a defined interest coverage ratio and leverage ratio that are tested on a quarterly basis. Our Credit Facility also prohibits share repurchases for cancellation if our leverage ratio (as defined in such facility) exceeds a specified amount (Repurchase Restriction). At December 31, 2019 , we were in compliance with all restrictive and financial covenants under the Credit Facility. As previously disclosed in the notes to our unaudited interim condensed consolidated financial statements for the third quarter of 2019, we had bee n in non-compliance with certain restrictive covenants related to the Repurchase Restriction with respect to approximately $17 in excess share repurchases made in May 2019 under our normal course issuer bid (NCIB). These defaults, as well as related cross defaults, were waived in October 2019 (Waivers). Upon receipt of the Waivers, the Terms Loans were no longer subject to potential acceleration, and our interest rate swap agreements were no longer subject to potential termination, an d therefore reverted to their prior long-term classification (they had previously been reclassified to current as of September 30, 2019) . The obligations under the Credit Facility are guaranteed by us and certain specified subsidiaries. Subject to specified exemptions and limitations, all assets of the guarantors are pledged as security for the obligations under the Credit Facility. The Credit Facility contains customary events of default. If an event of default occurs and is continuing (and is not waived), the administrative agent may declare all amounts outstanding under the Credit Facility to be immediately due and payable and may cancel the lenders’ commitments to make further advances thereunder. In the event of a payment or other specified defaults, outstanding obligations accrue interest at a specified default rate. The following table sets forth our borrowings under our Credit Facility*, and our lease obligations, as of December 31, 2019 and 2018 : Note December 31 December 31 Borrowings under the Revolver (1) $ 159.0 $ — Borrowings under the Term Loans (2) 598.3 592.3 Total borrowings under Credit Facility 757.3 592.3 Less: unamortized debt issuance costs related to our Term Loans (2) (9.8 ) (9.7 ) Lease obligations, comprised of lease obligations under IFRS 16 and lease obligations financed through third parties (3) 2 10.4 116.1 $ 757.9 $ 698.7 Comprised of: Current portion of borrowings under Credit Facility and lease obligations $ 107.7 $ 139.6 Long-term portion of borrowings under Credit Facility and lease obligations 650.2 559.1 $ 757.9 $ 698.7 * excluding ordinary course letters of credit. (1) Debt issuance costs were incurred in connection with our Prior Revolver in 2014 ( $1.7 ) and the Revolver in 2018 ( $3.1 ) and 2019 ( $1.1 ), which we deferred as other assets on our consolidated balance sheets and amortize over the term of the relevant revolver. See note 10 for the long-term portion of the deferred financing costs. We accelerated the amortization of $0.6 , representing the remaining portion of unamortized deferred financing costs related to the Prior Revolver, upon termination of the Prior Facility, and recorded it to other charges in June 2018. (2) Debt issuance costs were incurred in connection with our Prior Term Loan in 2015 ( $2.1 ), the Term Loans in 2018 ( $10.3 ) and 2019 ( $1.6 ), which we deferred as long-term debt on our consolidated balance sheets and amortize over the term of the relevant term loan using the effective interest rate method. We accelerated the amortization of $0.6 , representing the remaining portion of unamortized deferred financing costs related to the Prior Term Loan, upon termination of the Prior Facility, and recorded it to other charges in June 2018. (3) As of December 31, 2019 , the current portion of lease obligations was $28.4 (2018 — $3.2 ) and the long-term portion was $87.7 (2018 — $7.2 ). The balance at December 31, 2019 included $111.2 of lease obligations under IFRS 16. The Term Loans require aggregate quarterly principal repayments of $1.5 , and a lump sum repayment of the remainder outstanding at maturity, as well as mandatory prepayments under specified conditions (as described above). At December 31, 2019 , the aggregate remaining mandatory principal repayments of the Term Loans were as follows, including a mandatory Term Loan prepayment of $107.0 due in 2020 based on specified excess cash flow for 2019 (we are currently unable to determine whether further mandatory principal repayments of the Term Loans based on specified excess cash flow or cash proceeds will be required subsequent to 2020): Years ending December 31 Amount 2020 $ 113.0 2021 6.0 2022 6.0 2023 6.0 2024 6.0 2025 (to maturity in June 2025) 455.3 $ 592.3 We entered into 5 -year interest rate swap agreements with a syndicate of third-party banks in August and December 2018 to partially hedge against our exposures to the interest rate variability on our Term Loans. The derivative instruments swap the variable rate of interest for a fixed rate of interest on $175.0 of the amounts outstanding under each of our Initial Term Loan and our Incremental Term Loan, for an aggregate hedged amount of $350.0 . See note 21 . At December 31, 2019 , we had $21.2 outstanding in letters of credit under the Revolver ( December 31, 2018 — $21.3 ). We also arrange letters of credit and surety bonds outside of the Revolver. At December 31, 2019 , we had $13.3 ( December 31, 2018 — $14.4 ) of such letters of credit and surety bonds outstanding. At December 31, 2019 , we also had a total of $142.5 ( December 31, 2018 — $132.8 ) in uncommitted bank overdraft facilities available for intraday and overnight operating requirements. There were no amounts outstanding under these overdraft facilities at December 31, 2019 or December 31, 2018 . See note 17 for a discussion of finance costs. At December 31, 2019 , the contractual undiscounted cash flows for our lease obligations (comprised of lease obligations under IFRS 16 and lease obligations financed through third-parties) were as follows: Years ending December 31 Leases financed through third-parties Other leases Total 2020 $ 1.6 $ 32.5 $ 34.1 2021 1.6 25.8 27.4 2022 1.4 20.7 22.1 2023 0.9 16.2 17.1 2024 — 11.2 11.2 Thereafter — 23.0 23.0 $ 5.5 $ 129.4 $ 134.9 Other lease related expenses that were recognized in the consolidated statement of operations for 2019 are as follows: Year ended December 31 2019 Interest expense on lease obligations $ 6.6 Variable lease payments not included in the measurement of lease obligations $ 0.7 Expenses relating to short-term leases or low-value leases $ 4.6 |
Capital Stock
Capital Stock | 12 Months Ended |
Dec. 31, 2019 | |
Share Capital and Share-based Payment Arrangements [Abstract] | |
Capital Stock | CAPITAL STOCK: We are authorized to issue an unlimited number of SVS, which entitle the holder to one vote per share, and an unlimited number of multiple voting shares (MVS), which entitle the holder to 25 votes per share. The SVS and MVS vote together as a single class on all matters submitted to a vote of shareholders, including the election of directors, except as otherwise required by law. The holders of the SVS and MVS are entitled to share ratably, as a single class, in any dividends declared subject to any preferential rights of any outstanding preferred shares in respect of the payment of dividends. Each MVS is convertible at any time at the option of the holder thereof and automatically, under certain circumstances, into one SVS. We are also authorized to issue an unlimited number of preferred shares, issuable in series. No preferred shares have been issued to date. (a) Capital transactions: Number of shares (in millions) SVS MVS Issued and outstanding at December 31, 2016 121.9 18.9 Issued from treasury (i) 2.8 — Cancelled under NCIB (1.9 ) — Other (ii) 0.35 (0.35 ) Issued and outstanding at December 31, 2017 123.2 18.6 Issued from treasury (i) 1.3 — Cancelled under NCIB (6.8 ) — Issued and outstanding at December 31, 2018 117.7 18.6 Issued from treasury (i) 0.8 — — Cancelled under NCIB (8.3 ) — — Issued and outstanding at December 31, 2019 110.2 18.6 (i) During 2019 , we issued nil ( 2018 — 0.1 million ; 2017 — 1.7 million ) SVS from treasury upon the exercise of stock options for aggregate cash proceeds of nil ( 2018 — $0.4 ; 2017 — $13.6 ). We issued 0.8 million ( 2018 — 1.2 million ; 2017 — 1.1 million ) SVS from treasury with ascribed values of $10.4 ( 2018 — $14.3 ; 2017 — $9.8 ) upon the vesting of certain RSUs and PSUs. We also settled RSUs and PSUs with SVS purchased in the open market. Settlement of these awards is described below. (ii) During 2017, Onex Corporation converted 346,175 MVS into SVS. Onex Corporation did not convert any MVS in 2018 or 2019. We have repurchased SVS in the open market and otherwise for cancellation in recent years pursuant to NCIBs, which allow us to repurchase a limited number of SVS during a specified period. However, our Credit Facility prohibits share repurchases for cancellation if our leverage ratio (as defined in such facility) exceeds a specified amount. This prohibition (Repurchase Restriction) was in effect at December 31, 2019. The maximum number of SVS we are permitted to repurchase for cancellation under each NCIB (when permitted) is reduced by the number of SVS purchased by a broker in the open market during the term of such NCIB to satisfy obligations under our SBC plans. The Repurchase Restriction is not applicable to open market purchases for this purpose. In December 2018, we launched an NCIB (2018 NCIB) which was completed in December 2019. The 2018 NCIB allowed us to repurchase, at our discretion, up to approximately 9.5 million SVS in the open market, or as otherwise permitted. In November 2017, we launched an NCIB (2017 NCIB) which was completed in November 2018. The 2017 NCIB allowed us to repurchase, at our discretion, up to approximately 10.5 million SVS in the open market, or as otherwise permitted. Information regarding share repurchase activities under our NCIBs for the years indicated is set forth below: Year ended December 31 2017 2018 2019 Aggregate cost (1) of SVS repurchased for cancellation $ 19.9 $ 75.5 $ 67.3 Number of SVS repurchased for cancellation (in millions) 1.9 6.8 8.3 Weighted average price per share for repurchases $ 10.58 $ 11.10 $ 8.15 Aggregate cost (1) of SVS repurchased for delivery under SBC plans $ 16.7 $ 22.4 $ 9.2 Number of SVS repurchased for delivery under SBC plans (in millions) 1.4 2.1 1.2 (1) Includes transaction fees. December 31 2017 2018 2019 Number of SVS held by trustee for delivery under SBC plans (1) (in millions) 0.8 1.9 1.7 Value of SVS held by trustee for delivery under SBC plans (1) $ 8.7 $ 20.2 $ 14.8 (1) For accounting purposes, we classify these shares as treasury stock until they are delivered pursuant to the plans. (b) Employee SBC : Long-Term Incentive Plan (LTIP): Under the LTIP, we may grant stock options, stock appreciation rights, RSUs and PSUs to eligible employees, consultants and directors. We may, at the time of grant, authorize the grantees to settle these awards either in cash or in SVS. Absent such permitted election, such grants under the LTIP will be settled in SVS (on a one -for-one basis), which we may purchase in the open market, or issue from treasury (up to a maximum aggregate of 29.0 million SVS). As of December 31, 2019 , 10.3 million SVS remain reserved for issuance from treasury, covering potential issuances of SVS for outstanding awards and for potential future grants of SBC under the LTIP. Celestica Share Unit Plan (CSUP): Under the CSUP, we may grant RSUs and PSUs to eligible employees. We have the option to settle RSUs and PSUs issued thereunder in SVS (on a one -for-one basis) purchased in the open market, or in cash. For RSUs and DSUs issued to eligible directors under our Directors’ Share Compensation Plan (DSC Plan), see paragraph (c) below. Information regarding employee SBC expense for the years indicated is set forth below: Year ended December 31 2017 2018 2019 Employee SBC expense in cost of sales $ 14.6 $ 14.7 $ 14.6 Employee SBC expense in SG&A 15.5 18.7 19.5 Total $ 30.1 $ 33.4 $ 34.1 Employee SBC expense varies from period-to-period. The portion of such expense that relates to performance-based compensation generally varies depending on our level of achievement of pre-determined performance goals and financial targets. (i) Stock options: We are permitted to grant stock options under our LTIP, although no stock options have been granted in 2017, 2018 or 2019. When granted, stock options are granted at prices equal to the closing market price on the day prior to the grant date and are exercisable during a period not to exceed 10 years from the grant date. Stock option transactions were as follows for the years indicated: Number of Weighted Average (in millions) Outstanding at January 1, 2017 2.1 $ 8.46 Exercised (1.7 ) $ 7.87 Outstanding at December 31, 2017 0.4 $ 12.14 Exercised (0.1 ) $ 6.20 Outstanding at December 31, 2018 0.3 $ 11.93 Exercised — $ — Outstanding at December 31, 2019 0.3 $ 12.50 The following stock options* were outstanding as at December 31, 2019 : Range of Exercise Prices Outstanding Weighted Average Weighted Average Remaining Life Exercisable Weighted Average (in millions) (years) (in millions) $6.35 - $13.46 0.3 $12.50 5.2 0.3 $12.50 * The exercise prices used in the above tables were determined by converting the grant date fair value into U.S. dollars at the year-end exchange rate. We amortize the estimated grant date fair value of stock options to expense over the vesting period (generally four years). The grant date fair value of outstanding stock options was determined using the Black-Scholes option pricing model and the following assumptions in the year of the grant: risk-free interest rate (based on U.S. government bond yields), expected volatility of the market price of our shares (based on historical volatility of our share price), and the expected option life (in years) (based on historical option holder behavior). (ii) RSUs and PSUs: We grant RSUs and PSUs to employees pursuant to our LTIP and CSUP. Each vested unit generally entitles the holder to receive one SVS. Under the CSUP, we have the option to satisfy the delivery of shares upon vesting of the awards by purchasing SVS in the open market or by settling such awards in cash. Under the LTIP, we may (at the time of grant) authorize the grantees to settle awards in either cash or SVS (absent such permitted election, grants will be settled in SVSs, which we may purchase in the open market or issue from treasury, subject to certain limits). We have generally settled these awards with SVS purchased in the open market by a broker, or issued from treasury. Unless a grantee has been authorized, and elects, to settle these awards in cash, Celestica intends to, settle all RSUs and PSUs with shares purchased in the open market. As a result, we have accounted for these awards as equity-settled awards. We amortize the grant date fair value of RSUs and PSUs to expense over the vesting period. The grant date fair value of RSUs is based on the market value of our SVS at the time of grant. With respect to PSUs, employees are granted a target number of PSUs (set forth for the years indicated in the table below). The number of PSUs that will actually vest will vary from 0% to 200% of the target amount granted based on the level of achievement of the relevant performance conditions. PSUs (representing in each case 100% of target) were primarily granted in the first quarter of each of 2017, 2018 and 2019. The PSUs granted in 2018 and 2019 vest based on the level of achievement of a pre-determined non-market performance measurement in the final year of the three -year performance period, subject to modification by a separate pre-determined non-market financial target and our relative TSR performance over the three -year vesting period. See note 2 (l) for a description of TSR. We estimated the grant date fair value of the TSR modifier using a Monte Carlo simulation model and a premium of 102% (2018 — 106% ). The grant date fair value of the non TSR-based performance measurement and modifier was based on the market value of our SVS at the time of grant and is subject to adjustment in subsequent years to reflect a change in the estimated level of achievement related to the applicable performance condition. 60% of the PSUs granted in 2017 vested based on the achievement of a market performance condition tied to TSR, and the balance vested based on a pre-determined non-market performance measurement in the final year of the three -year performance period. We estimated the grant date fair value of the 2017 TSR-based PSUs using a Monte Carlo simulation model (premium of 143% ). The grant date fair value of the 2017 non-TSR-based PSUs was based on the market value of our SVS at the time of grant and was subject to adjustment in subsequent years to reflect a change in the estimated level of achievement related to the applicable performance condition. Vested awards were settled with SVS purchased in the open market by a broker or issued from treasury. Information regarding RSU and PSU grants to employees and directors (see below), as applicable, for the years indicated is set forth below: Year ended December 31 2017 2018 2019 RSUs Granted: Number of awards (in millions) 1.9 2.6 3.0 Weighted average grant date fair value per unit $ 13.05 $ 10.48 $ 7.88 PSUs Granted: Number of awards (in millions, representing 100% of target) 0.9 1.6 2.1 Weighted average grant date fair value per unit $ 17.18 $ 11.11 $ 8.14 December 31 2017 2018 2019 Number of outstanding RSUs (in millions) 3.2 3.8 4.6 Number of outstanding PSUs (in millions, representing 100% of target granted) 2.5 3.2 3.8 (c) Director SBC : We grant DSUs to certain members of our Board of Directors under our DSC Plan. Commencing in 2019, we also grant RSUs (under specified circumstances) to directors as compensation under the DSC Plan. DSUs granted prior to January 1, 2007 may be settled with SVS issued from treasury or purchased in the open market, or with cash (at the discretion of the Company). DSUs granted after January 1, 2007 to directors as compensation may only be settled with SVS purchased in the open market, or with cash (at the discretion of the Company). RSUs granted to directors vest ratably over a three -year period. Such RSUs are governed by the terms of our LTIP. Each vested RSU entitles the holder thereof to one SVS; however, if permitted by the Company under the terms of the grant, a director may elect to receive a payment of cash in lieu of SVS. Unvested RSUs will vest immediately on the date the director Retires. See note 2 (l) for details. During 2017, two of our directors resigned from the Board and in connection therewith, we settled their outstanding DSUs in 2017 in accordance with the provisions of the DSC Plan. Specifically, we paid $1.7 in cash to Joseph M. Natale to settle his outstanding DSUs, and we settled the outstanding DSUs of Thomas S. Gross with 14,098 SVS that we purchased in the open market. As Celestica is permitted to, and currently intends to, settle all other DSUs with shares purchased in the open market, we have accounted for these awards as equity-settled awards. On January 29, 2020, William A. Etherington, our former Chair of the Board, retired from Celestica’s Board of Directors and Michael M. Wilson (a director since 2011) was immediately appointed as Chair of the Board. In accordance with the DSC Plan, the DSUs held by Mr. Etherington will be redeemed and payable on or prior to the 90 th day following the date on which he is no longer a director or employee of any corporation that does not deal at arm’s length with the Company. As of January 29, 2020, Mr. Etherington held 0.47 million DSUs. Information regarding director SBC expense for the years indicated is set forth below: Year ended December 31 2017 2018 2019 Director SBC expense in SG&A $ 2.2 $ 2.0 $ 2.4 December 31 2017 2018 2019 Number of DSUs outstanding (in millions) 1.5 1.6 1.8 Number of RSUs issued to directors outstanding (in millions) — — 0.02 |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss, Net of Tax | 12 Months Ended |
Dec. 31, 2019 | |
Subclassifications of assets, liabilities and equities [abstract] | |
Accumulated Other Comprehensive Loss, Net of Tax | ACCUMULATED OTHER COMPREHENSIVE LOSS, NET OF TAX: Year ended December 31 Note 2017 2018 2019 Opening balance of foreign currency translation account $ (15.2 ) $ (14.5 ) $ (14.4 ) Foreign currency translation adjustments 0.7 0.1 (0.2 ) Closing balance (14.5 ) (14.4 ) (14.6 ) Opening balance of unrealized net gain (loss) on currency forward cash flow hedges $ (9.5 ) $ 7.8 $ (7.7 ) Net gain (loss) on currency forward cash flow hedges (i) 27.9 (14.7 ) 6.7 Reclassification of net loss (gain) on currency forward cash flow hedges to operations (ii) (10.6 ) (0.8 ) 4.1 Closing balance (iii) 7.8 (7.7 ) 3.1 Opening balance of unrealized net gain (loss) on interest rate swap cash flow hedges $ — $ — $ (4.4 ) Net loss on interest rate swap cash flow hedges — (4.8 ) (10.2 ) Reclassification of net loss on interest rate swap cash flow hedges to operations — 0.4 2.5 Closing balance (iv) — (4.4 ) (12.1 ) Actuarial gains (losses) on pension and non-pension post-employment benefit plans 19 $ (1.2 ) $ 8.4 $ (8.7 ) Reclassification of actuarial losses (gains) to deficit 1.2 (8.4 ) 8.7 Loss on purchase of pension annuities 19 (17.0 ) (63.3 ) — Reclassification of loss on purchase of pension annuities to deficit 19 17.0 63.3 — Closing balance — — — Accumulated other comprehensive loss $ (6.7 ) $ (26.5 ) $ (23.6 ) (i) Net of income tax expense of $0.2 for 2019 ( 2018 — net of $1.0 income tax benefit; 2017 — net of $2.8 income tax expense). (ii) Net of release of income tax benefit of $0.5 associated with the reclassification of net hedge (gain) loss to operations for 2019 ( 2018 — net of release of $0.7 of income tax expense; 2017 — net of release of $0.3 of income tax expense). (iii) Net of income tax expense of $0.2 as of December 31, 2019 ( December 31, 2018 — net of $0.5 of income tax benefit; December 31, 2017 — net of $1.2 of income tax expense). (iv) No income tax impact as of December 31, 2019 or December 31, 2018 . We expect that the majority of net gains or losses on foreign exchange cash flow hedges reported in the 2019 accumulated other comprehensive loss balance will be reclassified to operations during 2020 , primarily in cost of sales, as the underlying expenses that are being hedged are primarily included in cost of sales. The gains or losses on interest rate swap cash flow hedges will be released from OCI to finance costs in each of the respective interest payment periods during the 5 -year term of the swap agreements, which mature in 2023 if the options to cancel remain unexercised. |
Expenses By Nature
Expenses By Nature | 12 Months Ended |
Dec. 31, 2019 | |
Analysis of income and expense [abstract] | |
Expenses By Nature | EXPENSES BY NATURE: We have presented our consolidated statement of operations by function. Items included in our cost of sales and SG&A for the years indicated are set forth below: Year ended December 31 2017 2018 2019 Employee-related costs $ 726.4 $ 804.7 $ 815.2 SBC expense included in above employee-related costs 30.1 33.4 34.1 Freight and transportation costs 79.3 97.0 90.3 Depreciation expense (including depreciation on ROU assets in 2019) (i) 67.6 73.7 105.8 Rental expense (i) 28.5 35.4 5.3 (i) Effective January 1, 2019, we adopted the new lease accounting standards under IFRS 16 and recognized ROU assets and related lease obligations on our balance sheet. The amortization of the ROU assets is recorded as a depreciation expense ( $32.5 for 2019), and the interest expense on the related lease obligations is recognized as finance costs in our consolidated statement of operations. Prior to the adoption of IFRS 16, we recognized rental expenses on a straight-line basis over the lease term generally in cost of sales or SG&A in our consolidated statement of operations. We continue to expense the costs of low-value and short-term leases in our consolidated statement of operations on a straight-line basis over the lease term as rental expense ( $5.3 for 2019). See note 12 for disclosure of lease expenses. |
Other Charges (Recoveries)
Other Charges (Recoveries) | 12 Months Ended |
Dec. 31, 2019 | |
Analysis of income and expense [abstract] | |
Other Charges (Recoveries) | OTHER CHARGES (RECOVERIES): Year ended December 31 Note 2017 2018 2019 Restructuring charges (a) $ 28.9 $ 35.4 $ 37.9 Losses on pension and non-pension post-employment benefit plans (b) 19 1.9 — 4.1 Transition Costs (Recoveries) (c) 7 1.6 13.2 (95.8 ) Credit Facility-related charges (d) — 1.2 2.0 Acquisition Costs and other (e) 4.6 11.2 1.9 $ 37.0 $ 61.0 $ (49.9 ) (a) Restructuring: Our restructuring charges for the years indicated were comprised of the following: Year ended December 31 2017 2018 2019 Cash charges $ 25.1 $ 35.2 $ 28.1 Non-cash charges 3.8 0.2 9.8 $ 28.9 $ 35.4 $ 37.9 We recorded an aggregate of $81.3 in restructuring charges from the commencement of our cost efficiency initiative (CEI) in the fourth quarter of 2017 through its completion at the end of 2019 . The CEI included actions related to our previously-disclosed CCS segment portfolio review (CCS Review) and our capital equipment business, and resulted in reductions to our workforce, as well as consolidation of certain sites to better align capacity and infrastructure with current and anticipated customer demand, related transfers of customer programs and production, re-alignment of business processes, management reorganizations, and other associated activities. We recorded restructuring charges of $37.9 in 2019 , all in connection with our CEI, consisting of cash charges of $28.1 , primarily for employee termination costs, and non-cash charges of $9.8 . The non-cash restructuring charges recorded in 2019 represented the write-down of certain equipment, primarily related to our capital equipment business and disengaged programs, and the write down of ROU assets ( $1.0 ) pertaining to vacated properties, resulting in part from certain sublet recoveries that were lower than the carrying value of the related leases. Our restructuring provision at December 31, 2019 was $11.2 ( December 31, 2018 — $10.3 ), which we recorded in the current portion of provisions on our consolidated balance sheet. See note 11. We recorded restructuring charges of $35.4 in 2018 , all in connection with our CEI, consisting of cash charges of $35.2 , primarily for consultant costs, and employee and lease termination costs, and non-cash charges of $0.2 , representing losses on the sale of surplus equipment. We recorded restructuring charges of $28.9 in 2017 . Our restructuring charges for 2017 consisted of cash charges of $25.1 , comprised of employee termination costs related to our Organizational Design and Global Business Services initiatives (each of which were completed in 2017 ), costs in connection with the rationalization of certain operations in the third quarter of 2017 , and $8.0 of charges in connection with our CEI in the fourth quarter of 2017 , and net non-cash charges of $3.8 to write down the carrying value of our solar panel manufacturing equipment which we have since sold. See notes 2 (k) and 11 for further details regarding our restructuring provisions. (b) Losses on pension and non-pension post-employment benefit plans: In April 2017 , the trustees of our U.K. supplementary pension plan entered into an agreement with a third party insurance company to purchase an annuity for all participants of this plan, all of whom are retired. The cost of the annuity resulted in a non-cash loss of $1.9 which we recorded during the second quarter of 2017 in other charges in our consolidated statement of operations. Also see note 19 for a discussion of non-cash losses recorded in OCI in each of March 2017 and June 2018 in connection with annuities we purchased for participants in our U.K. main pension plan. During Q4 2019 , we recorded non-cash charges of $4.1 , representing additional obligations under our Thailand post-employment benefit plan as a result of recent changes in labor protection laws in Thailand that increase severance benefits for specified employees upon termination. (c) Transition Costs (Recoveries): Transition Costs are comprised of transition-related relocation and duplicate costs pertaining to: (i) the relocation of our Toronto manufacturing operations and our corporate headquarters in connection with the sale of our Toronto real property (Toronto Transition Costs); and (ii) the transfer of certain capital equipment manufacturing lines from closed sites to other sites within our global network in response to the current capital equipment demand environment (Internal Relocation Costs). Transition Costs consist of direct relocation and duplicate costs (such as rent expense, utility costs, depreciation charges, and personnel costs) incurred during the transition periods, as well as cease-use costs incurred in connection with idle or vacated portions of the relevant premises. Transition Recoveries consist of the $102.0 Property Gain we recorded in Q1 2019 . See note 7 for a discussion of Toronto Transition Costs and the sale of our Toronto real property. We recorded $2.4 of Internal Relocation Costs in 2019 (no such costs were recorded prior to the third quarter of 2019 ). (d) Credit Facility-related charges: During the second quarter of 2018 , we recorded a $1.2 charge to accelerate the amortization of unamortized deferred financing costs related to the extinguishment of the Prior Facility. See note 12. During Q4 2019 , we incurred $2.0 in fees in connection with obtaining the Waivers in October 2019 (Waiver Fees). (e) Acquisition Costs and other: During 2019 , we recorded $3.9 ( 2018 — $11.0 ; 2017 — $4.5 ) in Acquisition Costs. See note 3 . Acquisition Costs in 2019 and 2017 were offset in part by legal recoveries in connection with the settlement of class action lawsuits in which we were a plaintiff. The 2017 recoveries of $1.1 were partially offset by costs we recorded for unrelated legal matters. |
Finance Costs
Finance Costs | 12 Months Ended |
Dec. 31, 2019 | |
Analysis of income and expense [abstract] | |
Finance Costs | FINANCE COSTS: Finance costs consist of interest expense and fees related to our Credit Facility (including debt issuance and related amortization costs), our interest rate swap agreements, our A/R sales program and SFPs, and, commencing in Q1 2019 , interest expense on our lease obligations under IFRS 16, net of interest income earned. We paid finance costs of $44.5 in 2019 ( 2018 — $36.0 ; 2017 — $10.2 ). See notes 4 and 12 . We paid $2.0 in Waiver Fees in 2019 , which we recorded in Other Charges (see note 16(d)). |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2019 | |
Related Party [Abstract] | |
Related Party Transactions | RELATED PARTY TRANSACTIONS: Onex Corporation (Onex) beneficially owns, controls, or directs, directly or indirectly, all of our outstanding MVS. Accordingly, Onex has the ability to exercise significant influence over our business and affairs and generally has the power to determine all matters submitted to a vote of our shareholders where the SVS and MVS vote together as a single class. Mr. Gerald Schwartz, the Chairman of the Board, President and Chief Executive Officer of Onex, indirectly owns shares representing the majority of the voting rights of the shares of Onex. We are party to a Services Agreement with Onex for the services of Mr. Tawfiq Popatia, an officer of Onex, as a director of Celestica, pursuant to which Onex receives compensation for such services. This agreement automatically renews for successive one -year terms unless either party provides a notice of intent not to renew. Under such agreement, the annual fee payable to Onex is $0.235 , payable in DSUs in equal quarterly installments, in arrears. The Services Agreement terminates automatically and the rights of Onex to receive compensation (other than accrued and unpaid compensation) will terminate (a) 30 days after the first day on which Onex ceases to hold at least one MVS of Celestica or any successor company or (b) the date Mr. Popatia ceases to be a director of Celestica for any reason. See note 7 for details with respect to Mr. Schwartz's interest in the Property Purchaser, and the Property Purchaser's 5% non-voting interest in the Assignee. Compensation of key management personnel: Our key management team consists of directors and senior executive officers. The aggregate compensation expenses we recognized under IFRS for our directors and senior executive officers were as follows: Year ended December 31 2017 2018 2019 Short-term employee benefits and costs $ 7.5 $ 6.2 $ 4.4 Post-employment and other long-term benefits 0.6 0.3 0.3 SBC (including DSUs and RSUs to eligible directors) 12.4 14.8 15.6 $ 20.5 $ 21.3 $ 20.3 |
Pension and Non-pension Post-em
Pension and Non-pension Post-employment Benefit Plans | 12 Months Ended |
Dec. 31, 2019 | |
Employee Benefits [Abstract] | |
Pension and Non-pension Post-employment Benefit Plans | PENSION AND NON-PENSION POST-EMPLOYMENT BENEFIT PLANS: (a) Plan summaries: We provide pension and non-pension post-employment benefit plans for our employees. At December 31, 2019, such plans included a defined benefit pension plan for our employees in the United Kingdom (U.K.) (U.K. main pension plan), that generally provides participants with stated benefits on retirement based on their pensionable service, either in annuities and/or lump sum payments. The U.K. main pension plan is closed to new members, and approximately 1% of such plan members remain active employees of the Company. Our previous supplementary pension plan for U.K. employees (described below) was wound-up in 2019. Defined contribution pension plans are offered to certain employees, mainly in Canada and the U.S. We provide non-pension post-employment benefits (under other benefit plans) to retired and terminated employees in Canada, the U.S., Mexico and Thailand. These benefits may include one-time retirement and specified termination benefits, medical, surgical, hospitalization coverage, supplemental health, dental and/or group life insurance. In March 2017, the trustees of our U.K. main pension plan entered into an agreement with a third party insurance company to purchase an annuity for participants in such plan who have retired. The cost of the annuity was £123.7 million (approximately $154.3 at the exchange rate at the time of recording) and was funded with existing plan assets. The annuity is held as an asset of the main pension plan. Although we retain ultimate responsibility for the payment of benefits to plan participants, the annuity substantially hedges the financial risk component of the associated pension obligations for such retired participants. The purchase of the annuity resulted in a non-cash loss of $17.0 which we recorded in OCI and simultaneously re-classified to deficit during the first quarter of 2017. We also reduced the value of our pension assets by $17.0 during the first quarter of 2017, which was recorded in other non-current assets on our consolidated balance sheet. In April 2017, the trustees of our U.K. supplementary pension plan entered into an agreement with a third party insurance company to purchase an annuity for all participants of this plan, all of whom were retired. The cost of the annuity was £9.1 million (approximately $11.7 at the exchange rate at the time of recording) and was funded with existing plan assets. The annuity was held as an asset of such plan. The purchase of the annuity resulted in a non-cash loss of $1.9 which we recorded during the second quarter of 2017 in other charges (see note 16 (b)) in our consolidated statement of operations, with a corresponding reduction in the value of our pension assets which was recorded in other non-current assets on our consolidated balance sheet. As we anticipated winding up this plan after the purchase of the annuity, the non-cash loss was recorded through our consolidated statement of operations. In June 2018, the trustees of the U.K. main pension plan entered into an agreement with a third party insurance company to purchase an annuity for participants in such plan who have not yet retired. The cost of the annuity was £156.1 million (approximately $209.2 at the exchange rate at the time of recording) and was funded with existing plan assets. The purchase of the annuity resulted in a non-cash loss of $63.3 for the second quarter of 2018 which we recorded in OCI and simultaneously re-classified to deficit, and the recognition of an additional pension obligation on our consolidated balance sheet after we fully reduced the pension asset to zero. The cost of the annuities is subject to a true-up adjustment in the near term, and we may be required to pay additional premium amounts after completion of data verification of all participants. The overall governance of our pension plans is conducted by our Human Resources and Compensation Committee which, through annual reviews, approves material plan changes, reviews funding levels, investment performance, compliance matters and plan assumptions, and ensures that the plans are administered in accordance with local statutory requirements. We have established a Pension Committee to govern our Canadian pension plans. The U.K. pension plan is governed by a Board of Trustees, composed of employee and company representation. Both the Canadian Pension Committee and the U.K. Board of Trustees review funding levels, investment performance and compliance matters for their respective plans. Our pension funding policy is to contribute amounts sufficient, at minimum, to meet local statutory funding requirements. For our defined benefit pension plans (primarily U.K.), local regulatory bodies either define the minimum funding requirement or approve the funding plans submitted by us. We may make additional discretionary contributions taking into account actuarial assessments and other factors. The contributions that we make to support ongoing plan obligations are recorded in the respective asset or liability accounts on our consolidated balance sheet. Our U.K. plan requires an actuarial valuation to be completed every three years. The actuarial valuation was completed using a measurement date of April 2019; the next valuation will have a measurement date of April 2022. We currently fund our non-pension post-employment benefit plans as we incur benefit payment obligations thereunder. Excluding our mandatory plans, the most recent actuarial valuations for our largest non-pension post-employment benefit plans were completed using measurement dates of May 2019 (Canada) and December 2019 (U.S.). The next actuarial valuations for these plans will have measurement dates of May 2022 and December 2020, respectively. We accrue the expected costs of providing non-pension post-employment benefits during the periods in which the employees render service. We used a measurement date of December 31, 2019 for the accounting valuation for pension and non-pension post-employment benefits. Our pension plans are exposed to market risks such as changes in interest rates, inflation, and fluctuations in investment values, as well as financial risks including counterparty risks of financial institutions from which annuities have been purchased for specified plans. See note 21 (c) . Our plans are also exposed to non-financial risks, including the membership’s mortality and demographic changes, as well as regulatory changes. We manage the funding level risk of defined benefit pension plans through our asset allocation strategy for each plan. In the U.K., the majority of the obligations under our remaining U.K. defined benefit pension plan have been hedged with the purchase of annuities with insurance companies as described above. Pension fund assets are invested primarily in fixed income and equity securities. Asset allocation between fixed income and equity securities is adjusted based on the expected life of the plan and the expected retirement dates of the plan participants. Our pension funds do not invest directly in our shares, but may invest indirectly as a result of the inclusion of our shares in certain investment funds. All of our plan assets are measured at their fair value using inputs described in the fair value hierarchy in note 21 . At December 31, 2019 , $28.7 ( December 31, 2018 — $26.5 ) of our plan assets were measured using Level 1 inputs of the fair value hierarchy and $299.8 ( December 31, 2018 — $266.5 ) of our plan assets (comprised of insurance annuities) were measured using Level 3 inputs of the fair value hierarchy. At December 31, 2019 , none ( December 31, 2018 — none ) of our plan assets were measured using Level 2 inputs of the fair value hierarchy. Approximately 97% of our plan assets consist of annuities purchased with insurance companies and assets held with financial institutions with a Standard and Poor’s long-term rating of A- or above at December 31, 2019 . The annuities purchased for the U.K. pension plans are held with financial institutions that are governed by local regulatory bodies. The remaining assets are held with financial institutions where ratings are not available or are below A-. For these institutions, Celestica monitors counterparty risk based on the diversification of plan assets. These plan assets are maintained in segregated accounts by a custodian that is independent from the fund managers. We believe that the counterparty risk is low. Plan assets are measured at their fair values; however, the amounts we are permitted to record for defined benefit plan assets may be restricted under IFRS. See note 2 (l) for a description of this restriction. Based on a review of the terms, conditions, and statutory minimum funding requirements of our defined benefit plans, we have determined that the present value of future pension refunds or reductions in future contributions to our pension plans exceeds the total of the fair value of plan assets net of the present value of related obligations. This determination was made on a plan-by-plan basis. As a result of our assessment, there were no reductions to the amounts we recorded for defined benefit plan assets as at December 31, 2019 or 2018 . (b) Plan financials: The table below presents the market value of plan assets: Fair Market Actual Asset 2018 2019 2018 2019 Quoted market prices: Debt investment funds $ 10.2 $ 10.3 4 % 3 % Equity investment funds 6.6 7.4 2 % 2 % Non-quoted market prices: Insurance annuities 266.5 299.8 91 % 91 % Other 9.7 11.0 3 % 4 % Total $ 293.0 $ 328.5 100 % 100 % The following tables provide a summary of the financial position of our pension and other benefit plans: Pension Plans Other Benefit Plans 2018 2019 2018 2019 Plan assets, beginning of year $ 395.5 $ 293.0 $ — $ — Interest income 9.4 8.0 — — Actuarial gains (losses) in other comprehensive income (i) (82.2 ) 27.8 — — Administrative expenses paid from plan assets (1.4 ) (1.2 ) — — Employer contributions 2.7 2.9 — 0.9 Employer direct benefit payments 1.0 0.8 2.3 3.0 Employer direct settlement payments — — 2.5 5.2 Settlement payments from employer — — (2.5 ) (5.2 ) Settlement payments from plan 0.1 — — (0.2 ) Benefit payments from plan (12.7 ) (12.0 ) — (0.2 ) Benefit payments from employer (1.0 ) (0.8 ) (2.3 ) (3.0 ) Foreign currency exchange rate changes and other (18.4 ) 10.0 — 1.3 Plan assets, end of year $ 293.0 $ 328.5 $ — $ 1.8 (i) Actuarial gains or losses are determined based on actual return on plan assets less interest income as set forth in the table above. For 2018, includes a $63.3 loss resulting from the purchase of annuities in June 2018 (see note 19 (a) above). Pension Plans Other Benefit Plans 2018 2019 2018 2019 Accrued benefit obligations, beginning of year $ 355.8 $ 309.6 $ 75.5 $ 68.1 Current service cost 1.8 1.9 2.2 2.6 Past service cost and settlement/curtailment losses (i) 0.1 — 1.2 8.0 Interest cost 8.6 8.6 2.6 2.6 Actuarial losses (gains) in other comprehensive income from: — Changes in demographic assumptions (3.7 ) (0.4 ) — (1.7 ) — Changes in financial assumptions (19.9 ) 31.1 (3.5 ) 11.4 — Experience adjustments 0.2 (2.9 ) (0.5 ) (0.7 ) Settlement payments from employer — — (2.5 ) (5.2 ) Settlement payments from plan 0.1 — — (0.2 ) Benefit payments from plan (12.7 ) (12.0 ) — (0.2 ) Benefit payments from employer (1.0 ) (0.8 ) (2.3 ) (3.0 ) Foreign currency exchange rate changes and other (19.7 ) 10.9 (4.6 ) 5.7 Accrued benefit obligations, end of year $ 309.6 $ 346.0 $ 68.1 $ 87.4 Weighted average duration of benefit obligations (in years) 18 18 13 13 (i) For 2019, past service costs of $4.1 were incurred for additional obligations under our Thailand post-employment benefit plan as a result of recent changes in labor protection laws in Thailand that increase severance benefits for specified employees upon termination. See note 16 (b). The settlement losses relate to employee terminations in connection with 2019 restructuring actions. The present value of the defined benefit obligations, the fair value of plan assets and the surplus or deficit in our defined benefit pension and other benefit plans are summarized as follows: Pension Plans Other Benefit Plans 2018 2019 2018 2019 Accrued benefit obligations, end of year $ (309.6 ) $ (346.0 ) $ (68.1 ) $ (87.4 ) Plan assets, end of year 293.0 328.5 — 1.8 Deficiency of plan assets over accrued benefit obligations $ (16.6 ) $ (17.5 ) $ (68.1 ) $ (85.6 ) The following table outlines the plan balances as reported on our consolidated balance sheet: December 31 December 31 2018 2019 Pension Other Total Pension Other Total Pension and non-pension post-employment benefit obligations $ (21.1 ) $ (67.7 ) $ (88.8 ) $ (22.6 ) $ (84.5 ) $ (107.1 ) Current other post-employment benefit obligations — (0.4 ) (0.4 ) — (1.1 ) (1.1 ) Non-current net pension assets (note 10) 4.5 — 4.5 5.1 — 5.1 $ (16.6 ) $ (68.1 ) $ (84.7 ) $ (17.5 ) $ (85.6 ) $ (103.1 ) The following table outlines the net expense recognized in our consolidated statement of operations for pension and non-pension post-employment benefit plans: Pension Plans Other Benefit Plans 2017 2018 2019 2017 2018 2019 Current service cost $ 2.1 $ 1.8 $ 1.9 $ 2.0 $ 2.2 $ 2.6 Net interest cost (income) (1.3 ) (0.8 ) 0.6 2.6 2.6 2.6 Past service cost and settlement/curtailment losses 1.9 0.1 — 0.6 1.2 8.0 Plan administrative expenses and other 1.3 1.3 1.5 — — — 4.0 2.4 4.0 5.2 6.0 13.2 Defined contribution pension plan expense (note 19(c)) 9.4 9.6 10.1 — — — Total expense for the year $ 13.4 $ 12.0 $ 14.1 $ 5.2 $ 6.0 $ 13.2 We generally record the expenses for pension plans and non-pension post-employment benefits in cost of sales, SG&A expenses, or other charges (see note 16 ), depending on the nature of the expenses. Our settlement loss in 2017 of $1.9 arose as a result of annuity purchases for our U.K. supplementary pension plan in April 2017. See note 19 (a) above. Our past service cost and settlement losses in 2019 relate to recent labor law changes in Thailand and employee terminations (see footnote (i) to the accrued benefit obligations table above). The following table outlines the gains and losses, net of tax, recognized in OCI and reclassified directly to deficit: Year ended December 31 2017 2018 2019 Cumulative losses (gains), beginning of year $ (4.1 ) $ 14.1 $ 69.0 Loss on pension annuity purchases (note 19(a)) 17.0 63.3 — Actuarial losses (gains) recognized during the year (i) 1.2 (8.4 ) 8.7 Cumulative losses (gains), end of year (ii) $ 14.1 $ 69.0 $ 77.7 (i) Net of income tax recovery of $0.3 for 2019 ( 2018 — net of $0.1 income tax recovery; 2017 — nil income tax recovery). (ii) Net of income tax recovery of $1.1 as at December 31, 2019 ( December 31, 2018 — net of $0.8 income tax recovery; December 31, 2017 — net of $0.7 income tax recovery). The following percentages and assumptions were used in measuring the plans for the years indicated: Pension Plans Other Benefit Plans 2017 2018 2019 2017 2018 2019 Weighted average discount rate at December 31 (i) for: Benefit obligations 2.5 2.9 2.1 3.6 3.8 2.9 Net pension cost 2.6 2.5 2.9 3.9 3.6 3.8 Weighted average rate of compensation increase for: Benefit obligations 4.0 4.1 3.8 4.6 4.2 4.6 Net pension cost 3.9 4.0 4.1 4.6 4.6 4.2 Healthcare cost trend rates: Immediate trend — — — 5.8 5.7 5.3 Ultimate trend — — — 4.5 4.0 4.0 Year the ultimate trend rate is expected to be achieved — — — 2030 2040 2040 (i) The weighted average discount rate is determined using publicly available rates for highly-rated bonds by currency in countries where we have a pension or non-pension benefit plan. A lower discount rate would increase the present value of the benefit obligation. Management applied significant judgment in determining these assumptions. We evaluate these assumptions on a regular basis taking into consideration current market conditions and historical market data. Actual results could differ materially from those estimates and assumptions. A one percentage-point increase or decrease in one of the following actuarial assumptions, holding other assumptions constant in each case, would increase (decrease) our benefit obligations as follows: Pension Plans Other Benefit Plans Year ended Year ended 1% Increase 1% Decrease 1% Increase 1% Decrease Discount rate $ (54.5 ) $ 70.6 $ (10.5 ) $ 12.9 Healthcare cost trend rate $ — $ — $ 7.2 $ (5.9 ) The sensitivity figures shown above were calculated by determining the change in our benefit obligations as at December 31, 2019 due to a 100 basis point increase or decrease to each of our significant actuarial assumptions used, primarily the discount rate and healthcare cost trend rate, in isolation, leaving all other assumptions unchanged from the original calculation. (c) Plan contributions: We made the following plan contributions for the years indicated below and estimate our contribution for 2020 to be as follows: Year ended December 31 Estimated Contribution * 2017 2018 2019 2020 Defined contribution plan $ 9.4 $ 9.6 $ 10.1 $ 10.1 Defined benefit plan 2.5 3.7 3.7 3.0 Total $ 11.9 $ 13.3 $ 13.8 $ 13.1 Non-pension post-employment benefit plans (i) $ 4.5 $ 4.8 $ 9.1 $ 4.4 * Our actual contributions could differ materially from these estimates. (i) For 2019, includes higher settlement payments related to employee terminations in connection with our restructuring actions taken during the year. See note 16(a). |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2019 | |
Income Taxes [Abstract] | |
Income Taxes | INCOME TAXES: Year ended December 31 2017 2018 2019 Current income tax expense: Current year (i) $ 39.3 $ 44.4 $ 35.1 Adjustments for prior years, including changes to net provisions related to tax uncertainties (ii) (0.2 ) (4.7 ) (12.3 ) 39.1 39.7 22.8 Deferred income tax expense (recovery): Origination and reversal of temporary differences (i) (iii) (5.6 ) 6.2 15.4 Changes in previously unrecognized tax losses and deductible temporary differences, including adjustments for prior years (iii) (iv) (5.9 ) (62.9 ) (8.7 ) (11.5 ) (56.7 ) 6.7 Income tax expense (recovery) $ 27.6 $ (17.0 ) $ 29.5 A reconciliation of income taxes calculated at the statutory income tax rate to the income tax expense at the effective tax rate is as follows: Year ended December 31 2017 2018 2019 Earnings before income taxes $ 133.1 $ 81.9 $ 99.8 Income tax expense at Celestica’s statutory income tax rate of 26.5% (2018 and 2017 — 26.5%) $ 35.3 $ 21.7 $ 26.4 Impact on income taxes from: Manufacturing and processing deduction (0.1 ) (0.1 ) — Foreign income taxed at different rates (7.6 ) (9.1 ) (6.7 ) Foreign exchange (6.8 ) 3.8 5.0 Other, including non-taxable/non-deductible items and changes to net provisions related to tax uncertainties (i) (ii) (iii) 3.4 11.3 (5.8 ) Change in tax rates — — (0.8 ) Change in unrecognized tax losses and deductible temporary differences (iii) (iv) 3.4 (44.6 ) 11.4 Income tax expense (recovery) $ 27.6 $ (17.0 ) $ 29.5 (i) These line items for 2017 in the two tables above were negatively impacted by a deferred tax expense of $4.0 related to taxable temporary differences associated with the then-anticipated repatriation of undistributed earnings from certain of our Chinese subsidiaries, of which $3.5 was realized as a current tax expense for withholding tax on dividends paid in 2018. These line items for 2019 in the two tables above were negatively impacted by a deferred tax expense of $6.0 related to taxable temporary differences associated with the anticipated repatriation of undistributed earnings from certain of our Chinese and Thai subsidiaries. (ii) These line items for 2019 in the two tables above include tax benefits related to return-to-provision adjustments and reversals of previously-recorded tax liabilities and uncertainties (discussed below). (iii) These line items for 2019 in the two tables above include the tax expense related to the taxable portion of the Property Gain and the recognition of offsetting previously-unrecognized tax losses (discussed below). (iv) These line items for 2018 in the two tables above include the recognition of an aggregate of $53.3 of deferred tax assets in our U.S. group of subsidiaries (discussed below). Our effective income tax rate can vary significantly period-to-period for various reasons, including as a result of the mix and volume of business in various tax jurisdictions within the Americas, Europe and Asia, in jurisdictions with tax holidays and tax incentives, and in jurisdictions for which no net deferred income tax assets have been recognized because management believed it was not probable that future taxable profit would be available against which tax losses and deductible temporary differences could be utilized. Our effective income tax rate can also vary due to the impact of restructuring charges, foreign exchange fluctuations, operating losses, cash repatriations, and changes in our provisions related to tax uncertainties. During 2019, we recorded a net income tax expense of $29.5 , which was favorably impacted by $6.4 in tax benefits arising from return-to-provision adjustments for changes in estimates related to prior years, based on changes in facts or circumstances, and an aggregate of $4.5 in reversals of certain previously-recorded tax liabilities and uncertainties, offset in part by $6.0 of deferred tax expense arising from taxable temporary differences associated with the anticipated repatriation of undistributed earnings from certain of our Chinese and Thai subsidiaries. While our net income tax expense included taxable foreign exchange impacts (Currency Impacts) from fluctuations in foreign currencies relative to the U.S. dollar during each quarter of 2019, overall net Currency Impacts for 2019 were not significant. In connection with the sale of our Toronto real property, there was no net tax impact (see note 16(c)), as the deferred tax expenses of $5.7 was offset by the recognition of previously unrecognized tax losses. During 2018, we recorded a net income tax recovery of $17.0 which was favorably impacted by the recognition of $3.7 and $49.6 of previously unrecognized deferred tax assets in our U.S. group of subsidiaries as a result of our Atrenne and Impakt acquisitions, respectively (which largely offset the net deferred tax liabilities of $56.6 that arose in connection with such acquisitions), as well as the reversal in Q2 2018 of $6.0 of previously-accrued Mexican income taxes to reflect the terms of an approved bi-lateral advance pricing arrangement. These income tax benefits were offset, in part, by adverse Currency Impacts arising from the weakening of the Malaysian ringgit and Chinese renminbi relative to the U.S. dollar. During 2017, we recorded a net income tax expense of $27.6 which was favorably impacted by the recognition of a deferred income tax benefit of $4.3 (Solar Benefit) related to our solar assets (described below), as well as favorable Currency Impacts resulting from the strengthening of the Malaysian ringgit and Chinese renminbi relative to the U.S. dollar, which were offset in part by $4.0 in deferred tax expense related to taxable temporary differences associated with the then-anticipated repatriation of undistributed earnings from certain of our Chinese subsidiaries, and a $2.0 deferred tax expense related to the U.S. Tax Reform (defined below). In connection with our exit from the solar panel manufacturing business, we withdrew one of our tax incentives in Thailand (which related solely to such operations) during the second quarter of 2017. The withdrawal of this incentive allowed us to apply tax losses arising from the disposition of our solar assets against other taxable profits in Thailand, resulting in the recognition of the Solar Benefit in 2017 and ultimately realized in 2018. The United States Tax Cuts and Jobs Act (U.S. Tax Reform) became effective January 1, 2018. We believe that we recorded all significant one-time impacts resulting from enactment of the U.S. Tax Reform in the fourth quarter of 2017 (consisting of a non-cash increase to our deferred income tax expense of $2.0 to re-value our previously recognized net deferred tax assets), but will continue to assess additional impacts, if any, as they become known due to changes in our interpretations and assumptions, as well as applicable changes in our business and additional regulatory guidance that may be issued. No significant amounts resulting from the U.S. Tax Reform were recorded during 2018 or 2019. Changes in deferred tax assets and liabilities for the periods indicated are as follows: Unrealized Accounting Pensions and Tax Property, Other Reclassification between deferred tax assets and deferred tax liabilities (i) Total Deferred tax assets: Balance — January 1, 2018 $ — $ 8.8 $ — $ 34.6 $ 6.3 $ — $ (12.1 ) $ 37.6 Credited (charged) to net earnings — 2.1 — 36.8 — 17.1 — 56.0 Credited (charged) directly to equity — — — (9.8 ) — 1.7 — (8.1 ) Effects of foreign exchange — (0.1 ) — (2.1 ) — 0.1 — (2.1 ) Other — — — — (6.3 ) (4.1 ) (36.3 ) (46.7 ) Balance — December 31, 2018 — 10.8 — 59.5 — 14.8 (48.4 ) 36.7 Credited (charged) to net earnings — (1.0 ) 0.6 2.1 — (3.1 ) — (1.4 ) Credited (charged) directly to equity — — — 0.3 — (0.6 ) — (0.3 ) Additions from business combinations — (0.1 ) — — — — — (0.1 ) Effects of foreign exchange — (0.1 ) — 1.0 — 0.3 — 1.2 Other — — (0.8 ) — — — (1.7 ) (2.5 ) Balance — December 31, 2019 $ — $ 9.6 $ (0.2 ) $ 62.9 $ — $ 11.4 $ (50.1 ) $ 33.6 Deferred tax liabilities: Balance — January 1, 2018 $ 25.2 $ — $ 10.6 $ — $ — $ 4.1 $ (12.1 ) $ 27.8 Charged (credited) to net earnings 1.5 — — — (2.3 ) — — (0.8 ) Charged (credited) directly to equity — — (9.9 ) — — — — (9.9 ) Additions from business combinations — — — — 56.6 — — 56.6 Effects of foreign exchange (2.1 ) — 0.1 — 0.5 — — (1.5 ) Other — — — — (6.3 ) (4.1 ) (36.3 ) (46.7 ) Balance — December 31, 2018 24.6 — 0.8 — 48.5 — (48.4 ) 25.5 Charged (credited) to net earnings 0.8 — — — 4.5 — — 5.3 Additions from business combinations — — — — (0.9 ) — — (0.9 ) Effects of foreign exchange 1.0 — — — — — — 1.0 Other — — (0.8 ) — — — (1.7 ) (2.5 ) Balance — December 31, 2019 $ 26.4 $ — $ — $ — $ 52.1 $ — $ (50.1 ) $ 28.4 (i) This reclassification reflects the offsetting of deferred tax assets and deferred tax liabilities to the extent they relate to the same taxing authorities and there is a legally enforceable right to such offset. The amount of deductible temporary differences and unused tax losses for which no deferred tax assets have been recognized at December 31, 2019 is $1,783.2 ( December 31, 2018 — $1,780.4 ). We have not recognized deferred tax assets in respect of these items because, based on management’s estimates, it is not probable that future taxable profit will be available against which we can utilize the benefits. A portion of these unused tax losses expires between 2020 and 2039 and a portion can be carried forward indefinitely to offset taxable profits. The deductible temporary differences do not expire under current tax legislation. The aggregate amount of temporary differences associated with investments in subsidiaries for which we have not recognized deferred tax liabilities is $5.0 ( December 31, 2018 — $5.8 ). As of December 31, 2019, we have recorded aggregate net deferred tax assets of $6.8 for one of our Asian subsidiaries which realized losses in 2019 and our U.S. group of subsidiaries which realized losses in 2018 and 2019 ( December 31, 2018 — $5.0 for losses incurred in our U.S. subsidiaries in 2018). We recognize deferred tax assets based on our estimate of the future taxable profit we expect these subsidiaries to achieve based on our review of financial projections. We did not record any deferred tax assets related to losses incurred in 2017 for any of our subsidiaries. Certain countries in which we do business grant tax incentives to attract or retain our business. Our tax expense could increase significantly if certain tax incentives from which we benefit are retracted. A retraction could occur if we fail to satisfy the conditions on which these tax incentives are based, or if they are not renewed or replaced upon expiration. Our tax expense could also increase if tax rates applicable to us in such jurisdictions are otherwise increased, or due to changes in legislation or administrative practices. Changes in our outlook in any particular country could impact our ability to meet the required conditions. Our tax incentives currently consist of tax holidays for the profits of our Thailand and Laos subsidiaries, as well as tax incentives for dividend withholding taxes for these subsidiaries. These tax incentives are subject to certain conditions with which we intend to comply, and expire between 2020 and 2027. The aggregate tax benefit arising from all of our tax incentives was approximately $1.5 or $0.01 per diluted share for 2019 , $4.7 or $0.03 per diluted share for 2018 , and $7.6 or $0.05 per diluted share for 2017 . We have three income tax incentives in Thailand ( one previous incentive expired in October 2019, and we had withdrawn another in 2017 in connection with our exit from the solar panel manufacturing business). Two of these incentives initially allow for a 100% income tax exemption (including distribution taxes), which after eight years transition to a 50% income tax exemption for the next five years (excluding distribution taxes). The third incentive, obtained in 2019, allows for a 100% income tax exemption for eight years. Upon full expiry of each of the incentives, taxable profits associated with such expired tax incentives become fully taxable. One of our remaining Thailand tax incentives expires in 2020, another will transition to the 50% exemption in 2022 and expire in 2027, and the third will expire in 2027. See note 24 regarding a Brazilian sales tax contingency. |
Financial Instruments and Risk
Financial Instruments and Risk Management | 12 Months Ended |
Dec. 31, 2019 | |
Financial Instruments [Abstract] | |
Financial Instruments and Risk Management | FINANCIAL INSTRUMENTS AND RISK MANAGEMENT: Our financial assets are comprised primarily of cash and cash equivalents, A/R, and derivatives used for hedging purposes. Our financial liabilities are comprised primarily of A/P, certain accrued and other liabilities and provisions, the Term Loans, borrowings under the Revolver, lease obligations, and derivatives. We record the majority of our financial assets and liabilities at amortized cost except for derivative assets and liabilities, which we measure at fair value. We classify our short-term investments in money market funds (if applicable) as FVTPL, and initially recognize such assets on our consolidated balance sheet at fair value with subsequent changes recorded in our consolidated statement of operations. The carrying value of the Term Loans approximates their fair value as they bear interest at a variable market rate. We classify the financial assets and liabilities that we measure at fair value based on the inputs used to determine fair value at the measurement date. Cash and cash equivalents are comprised of the following: December 31 2018 2019 Cash $ 409.1 $ 446.3 Cash equivalents 12.9 33.2 $ 422.0 $ 479.5 Our current portfolio of cash equivalents consists of bank deposits. The majority of our cash and cash equivalents are held with financial institutions each of which had at December 31, 2019 a Standard and Poor’s short-term rating of A-1 . Financial risk management objectives: We have exposures to a variety of financial risks through our operations. We regularly monitor these risks and have established policies and business practices to mitigate the adverse effects of these potential exposures. We have used derivative financial instruments, such as foreign currency forward and swap contracts, as well as interest rate swaps, to reduce the effects of some of these risks. We do not enter into or trade financial instruments, including derivative financial instruments, for speculative purposes. (a) Currency risk: Due to the global nature of our operations, we are exposed to exchange rate fluctuations on our financial instruments denominated in various currencies. The majority of our currency risk is driven by operational costs, including income tax expense, incurred in local currencies by our subsidiaries. As part of our risk management program, we attempt to mitigate currency risk through a hedging program using forecasts of our anticipated future cash flows and balance sheet exposures denominated in foreign currencies. We enter into foreign exchange forward contracts and swaps, generally for periods up to 12 months, to lock in the exchange rates for future foreign currency transactions, which is intended to reduce the variability of our operating costs and future cash flows denominated in local currencies. While these contracts are intended to reduce the effects of fluctuations in foreign currency exchange rates, our hedging strategy does not mitigate the longer-term impacts of changes to foreign exchange rates. Although our functional currency is the U.S. dollar, currency risk on our income tax expense arises as we are generally required to file our tax returns in the local currency for each particular country in which we have operations. While our hedging program is designed to mitigate currency risk vis-à-vis the U.S. dollar, we remain subject to taxable foreign exchange impacts in our translated local currency financial results relevant for tax reporting purposes. Our major currency exposures at December 31, 2019 are summarized in U.S. dollar equivalents in the following table. The local currency amounts have been converted to U.S. dollar equivalents using spot rates at December 31, 2019 . Canadian Romanian Leu Euro Thai baht Chinese renminbi Cash and cash equivalents $ 2.0 $ 0.6 $ 19.5 $ 2.7 $ 37.1 A/R 3.1 0.5 46.4 1.0 12.1 Income taxes and value-added taxes receivable — 0.5 1.1 1.2 2.4 Other financial assets — 0.7 1.7 0.6 0.3 Pension and non-pension post-employment liabilities (69.8 ) (0.1 ) (0.6 ) (13.3 ) (0.7 ) Income taxes and value-added taxes payable (1.4 ) — (0.6 ) (2.1 ) (6.7 ) A/P and certain accrued and other liabilities and provisions (54.4 ) (10.5 ) (39.2 ) (31.9 ) (28.3 ) Net financial assets (liabilities) $ (120.5 ) $ (8.3 ) $ 28.3 $ (41.8 ) $ 16.2 Foreign currency risk sensitivity analysis: The financial impact of a one-percentage point strengthening or weakening of the following currencies against the U.S. dollar for our financial instruments denominated in such non-functional currencies is summarized in the following table as at December 31, 2019 . The financial instruments impacted by a change in exchange rates include our exposures to the above financial assets or liabilities denominated in non-functional currencies and our foreign exchange forward contracts and swaps. Canadian Romanian Leu Euro Thai baht Chinese renminbi Increase (decrease) 1% Strengthening Net earnings $ (0.2 ) $ (0.1 ) $ 0.1 $ (0.1 ) $ — Other comprehensive income 1.0 0.3 — 0.7 0.3 1% Weakening Net earnings 0.2 0.1 (0.1 ) 0.1 — Other comprehensive income (1.0 ) (0.3 ) — (0.7 ) (0.3 ) (b) Interest rate risk: Borrowings under the Credit Facility bear interest at specified rates, plus specified margins. See note 12 . Our borrowings under this facility at December 31, 2019 totaled $592.3 ( December 31, 2018 — $757.3 ), comprised of an aggregate of $592.3 under the Term Loans ( December 31, 2018 — $598.3 ), and other than ordinary course letters of credit (described below), no amounts outstanding under the Revolver ( December 31, 2018 — $159.0 outstanding under the Revolver). Such borrowings expose us to interest rate risk due to the potential variability of market interest rates. Without accounting for the interest rate swaps described below, a one-percentage point increase in these rates would increase interest expense, based on outstanding borrowings of $592.3 as at December 31, 2019 , by $5.9 annually. As part of our risk management program, we attempt to mitigate interest rate risk through interest rate swaps. To partially hedge against our exposure to interest rate variability on the Term Loans, we entered into 5 -year agreements with a syndicate of third-party banks in August and December 2018 to swap the variable interest rates (based on LIBOR plus a margin) with fixed rates of interest on $350.0 of the total borrowings under the Term Loans. The terms of the interest rate swap agreements on the floating market rate and the interest payment dates match that of the underlying debt, such that any hedge ineffectiveness is not expected to be significant. The swap agreements include options that allow us to cancel up to $150.0 of the notional amount of the original swap agreements ( $75.0 under the Incremental Term Loan starting in December 2020, and $75.0 under the Initial Term Loan starting in August 2021). These options to cancel are aligned with our risk management strategy for the Term Loans as they allow us to make voluntary prepayments of outstanding amounts without premium or penalty, subject to certain conditions. Our unhedged borrowings under the Credit Facility at December 31, 2019 were $242.3 (comprised of an aggregate of $242.3 under the Term Loans and $0.0 under the Revolver). A one-percentage point increase in relevant interest rates would increase interest expense, based on the outstanding unhedged borrowings of $242.3 as at December 31, 2019 , by $2.4 annually. We obtain third-party valuations of the swaps under the interest rate swap agreements. The valuations of the swaps are primarily measured through various pricing models or discounted cash flow analyses that incorporate observable market parameters, such as interest rate yield curves and volatility, and credit risk adjustments. The valuations of the interest rate swaps are measured primarily based on Level 2 data inputs of the fair value measurement hierarchy. The unrealized portion of the hedge gain or loss of the swaps is recorded in accumulated OCI. The realized portion of the hedge gain or loss of the swaps is released from OCI and recognized under finance costs in our consolidated statement of operations in the respective interest payment periods. At December 31, 2019 , the fair value of our interest rate swap agreements was a net unrealized loss of $12.1 which we recorded in other non-current liabilities on our consolidated balance sheet. As we have swapped $350.0 of our borrowings under the Term Loans from floating to fixed rates, the financial impact of a 25 basis point increase in the floating market interest rate would decrease the net unrealized loss by $2.1 and a 25 basis point decrease in the floating interest rate would increase our unrealized loss on the interest rate swaps by $2.0 . (c) Credit risk: Credit risk refers to the risk that a counterparty may default on its contractual obligations resulting in a financial loss to us. We believe the risk of counterparty non-performance is relatively low, however, if a key supplier (or any company within such supplier's supply chain) or customer experiences financial difficulties or fails to comply with their contractual obligations, this could result in a financial loss to us. With respect to our financial market activities, we have adopted a policy of dealing only with credit-worthy counterparties to help mitigate the risk of financial loss from defaults. We monitor the credit risk of the counterparties with whom we conduct business, through a combined process of credit rating reviews and portfolio reviews. To attempt to mitigate the risk of financial loss from defaults under our foreign currency forward contracts and swaps, and our interest rate swaps, our contracts are held by counterparty financial institutions, each of which had a Standard and Poor’s rating of A-2 or above at December 31, 2019 . In addition, we maintain cash and short-term investments in highly-rated investments or on deposit with major financial institutions. Each financial institution with which we had our A/R sales program and our SFPs during 2019 had a Standard and Poor’s short-term rating of A-2 or above and a long-term rating of BBB+ or above at December 31, 2019 . The financial institution with which we have our March 2020 A/R sales program had a Standard and Poor's short term rating of A-1 and a long term rating of A+ at the time of execution of the agreement. Each financial institution from which annuities have been purchased for the defined benefit component of our Canadian pension plan had a Standard and Poor’s long-term rating of A+ or above at December 31, 2019 . In addition, the financial institutions from which annuities have been purchased for the defined benefit component of our U.K. pension plans are governed by local regulatory bodies. If an institution from which we purchased annuities for our pension plans defaults on their contractual obligations, this would result in a financial loss to us, as we retain ultimate responsibility for the payment of benefits to plan participants unless and until such pension plans are wound-up. We also provide unsecured credit to our customers in the normal course of business. Customer exposures that potentially subject us to credit risk include our A/R, inventory on hand, and non-cancellable purchase orders in support of customer demand. From time to time, we extend the payment terms applicable to certain customers, and/or provide longer payment terms when deemed commercially reasonable. Longer payment terms, which have become more prevalent, could adversely impact our working capital requirements, and increase our financial exposure and credit risk. We attempt to mitigate customer credit risk by monitoring our customers’ financial condition and performing ongoing credit evaluations as appropriate. In certain instances, we obtain letters of credit or other forms of security from our customers. We may also purchase credit insurance from a financial institution to reduce our credit exposure to certain customers. We consider credit risk in determining our allowance for doubtful accounts, and we believe that such allowance, as adjusted from time to time, is adequate. The carrying amount of financial assets recorded in our consolidated financial statements, net of our allowance for doubtful accounts, represents our estimate of maximum exposure to credit risk. At December 31, 2019 , less than 2% of our gross A/R are over 90 days past due (2018 — approximately 1% ). A/R are net of an allowance for doubtful accounts of $4.2 at December 31, 2019 ( December 31, 2018 — $5.3 ). (d) Liquidity risk: Liquidity risk is the risk that we may not have cash available to satisfy our financial obligations as they come due. The majority of our financial liabilities recorded in accounts payable, accrued and other current liabilities and provisions are due within 90 days. We manage liquidity risk by maintaining a portfolio of liquid funds and investments and having access to a revolving credit facility, intraday and overnight bank overdraft facilities, an A/R sales program and our SFPs. Since our A/R sales program and the SFPs are each on an uncommitted basis, there can be no assurance that any participant bank will purchase all the A/R that we wish to sell thereunder. However, we believe that cash flow from operating activities, together with cash on hand, cash from the sale of A/R, and borrowings available under the Revolver and intraday and overnight bank overdraft facilities are sufficient to fund our currently anticipated financial obligations. Fair values: We estimate the fair value of each class of financial instruments. The carrying values of cash and cash equivalents, our A/R, A/P, accrued liabilities and provisions, and our borrowings under the Revolver approximate the fair values of these financial instruments due to the short-term nature of these instruments. The carrying value of the Term Loans approximate their fair value as they bear interest at a variable market rate. The fair values of foreign currency contracts are estimated using generally accepted valuation models based on a discounted cash flow analysis with inputs of observable market data, including currency rates and discount factors. Discount factors are adjusted by our own credit risk or the credit risk of the counterparty, depending on whether the fair values are in liability or asset positions, respectively. We obtained third-party valuations of the swaps under our interest rate swap agreements. The valuations of the swaps are primarily measured through various pricing models or discounted cash flow analyses that incorporate observable market parameters, such as interest rate yield curves and volatility, and credit risk adjustments, and are based on Level 2 data inputs of the fair value measurement hierarchy (described below). Fair value measurements: In the table below, we have segregated our financial assets and liabilities that are measured at fair value, based on the inputs used to determine fair value at the measurement date. The three levels within the fair value hierarchy, based on the reliability of inputs, are as follows: • Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities; • Level 2 inputs are inputs other than quoted prices included in Level 1 that are observable for the asset or liability either directly ( i.e. prices) or indirectly ( i.e. derived from prices); and • Level 3 inputs are inputs for the asset or liability that are not based on observable market data ( i.e. unobservable inputs). December 31, 2018 December 31, 2019 Level 1 Level 2 Level 1 Level 2 Assets: Foreign currency forwards and swaps $ — $ 2.1 $ — $ 7.4 Liabilities: Interest rate swaps $ — $ (4.4 ) $ — $ (12.1 ) Foreign currency forwards and swaps — (16.3 ) — (2.9 ) $ — $ (20.7 ) $ — $ (15.0 ) See note 19 for the input levels used to measure the fair value of our pension assets. See note 3 for the input levels used to measure the fair value of acquired assets. Foreign currency forward and swap contracts are valued using an income approach, by comparing the current quoted market forward rates to our contract rates and discounting the values with appropriate market observable credit risk adjusted rates. We have not valued any of the financial instruments described in the table above using Level 3 (unobservable) inputs. There were no transfers of fair value measurements between Level 1 and Level 2 of the fair value hierarchy in 2019 or 2018 . Currency derivatives and hedging activities: We enter into foreign exchange forward contracts to hedge our cash flow exposures and foreign currency swaps to hedge our balance sheet exposures. At December 31, 2019 and 2018 , we had foreign exchange forwards and swaps to trade U.S. dollars in exchange for the following currencies: As at December 31, 2019 Currency Contract amount Weighted average Maximum Fair value Canadian dollar $ 195.6 $ 0.76 12 $ 2.1 Thai baht 98.8 0.03 12 2.1 Malaysian ringgit 54.1 0.24 12 0.4 Mexican peso 22.4 0.05 12 0.9 British pound 2.2 1.29 4 0.1 Chinese renminbi 48.8 0.14 12 (0.7 ) Euro 26.1 1.12 12 (0.5 ) Romanian leu 33.5 0.23 12 0.1 Singapore dollar 23.9 0.74 12 0.2 Other 18.5 — 4 (0.2 ) Total $ 523.9 $ 4.5 As at December 31, 2018 Currency Contract amount Weighted average Maximum Fair value Canadian dollar $ 210.2 $ 0.76 12 $ (10.3 ) Thai baht 81.1 0.03 12 (0.7 ) Malaysian ringgit 53.4 0.24 12 (0.8 ) Mexican peso 25.6 0.05 12 0.2 British pound 5.3 1.27 4 — Chinese renminbi 66.8 0.15 12 (1.6 ) Euro 35.8 1.17 12 0.3 Romanian leu 40.4 0.25 12 (0.9 ) Singapore dollar 22.1 0.74 12 (0.3 ) Other 3.5 — 1 (0.1 ) Total $ 544.2 $ (14.2 ) At December 31, 2019 , the fair value of our outstanding contracts was a net unrealized gain of $4.5 ( December 31, 2018 — net unrealized loss of $14.2 ), resulting from fluctuations in foreign exchange rates between the contract execution and the period-end date. Changes in the fair value of hedging derivatives to which we apply cash flow hedge accounting, to the extent effective, are deferred in OCI until the expenses or items being hedged are recognized in our consolidated statement of operations. Any hedge ineffectiveness, which at December 31, 2019 was not significant, is recognized immediately in our consolidated statement of operations. At December 31, 2019 , we recorded $7.4 of derivative assets in other current assets and $2.9 of derivative liabilities in accrued and other current liabilities ( December 31, 2018 — $2.1 of derivative assets in other current assets and $16.3 of derivative liabilities in accrued and other current liabilities). Certain foreign currency forward and swap contracts to trade U.S. dollars do not qualify as hedges, most significantly certain Canadian dollar contracts, and we have marked these contracts to market each period in our consolidated statement of operations. See note 2(p). |
Capital Disclosures
Capital Disclosures | 12 Months Ended |
Dec. 31, 2019 | |
Corporate Information And Statement Of IFRS Compliance [Abstract] | |
Capital Disclosures | CAPITAL DISCLOSURES: Our main objectives in managing our capital resources are to ensure liquidity and to have funds available for working capital or other investments we determine are required to grow our business. Our capital resources consist of cash provided by operating activities, access to the Revolver, intraday and overnight bank overdraft facilities, an A/R sales program, the SFPs (while available) and our ability to issue debt or equity securities. We regularly review our borrowing capacity and make adjustments, as permitted, for changes in economic conditions and changes in our requirements. In June 2018, we entered into our $800.0 Credit Facility, which provides for the $350.0 Initial Term Loan that matures in June 2025, and the $450.0 Revolver that matures in June 2023. In November 2018, we utilized the accordion feature under our Credit Facility to add the incremental $250.0 Incremental Term Loan, maturing in June 2025. The Credit Facility has an accordion feature that allows us to increase the term loans and/or revolving loan commitments thereunder by approximately $110 , plus an unlimited amount to the extent that a specified leverage ratio on a pro forma basis does not exceed specified limits, in each case on an uncommitted basis and subject to the satisfaction of certain terms and conditions. The Revolver also includes a $50.0 sub-limit for swing line loans, providing for short-term borrowings up to a maximum of ten business days, as well as a $150.0 sub-limit for letters of credit, in each case subject to the overall revolving credit limit. See note 12 for amounts outstanding under the Credit Facility at December 31, 2019 . We had $428.8 available as of December 31, 2019 under the Revolver for future borrowings. As of December 31, 2019, we also had access to $142.5 in intraday and overnight bank overdraft facilities, our then-existing $200.0 uncommitted A/R sales program, and the uncommitted SFPs to provide short-term liquidity. At December 31, 2019 , we sold $90.6 of A/R under our then-effective A/R sales program and $50.4 under the SFPs. We replaced our previous A/R sales program with a new uncommitted $235.0 A/R sales program that we executed in March 2020 (see note 4 ). The timing and amounts we may borrow and repay under these facilities can vary significantly from month-to-month depending on our working capital and other cash requirements. We have commenced NCIBs in the past few years, pursuant to which we have repurchased and canceled SVS. See note 13 for details. In addition, we have purchased SVS from time-to-time in the open market through a broker for delivery under our SBC plans. We have not distributed, nor do we have any current plan to distribute, any dividends to our shareholders. Our strategy on capital risk management has not changed significantly since the end of 2018 . Other than the restrictive and financial covenants associated with the Credit Facility described in note 12 , we are not subject to any contractual or regulatory capital requirements. While some of our international operations are subject to government restrictions on the flow of capital into and out of their jurisdictions, these restrictions have not had a material impact on our operations or cash flows. |
Weighted Average Number of Shar
Weighted Average Number of Shares Diluted | 12 Months Ended |
Dec. 31, 2019 | |
Earnings per share [abstract] | |
Weighted Average Number of Shares Diluted | WEIGHTED AVERAGE NUMBER OF SHARES DILUTED (in millions): 2017 2018 2019 Weighted average number of shares (basic) 143.1 139.4 131.0 Dilutive effect of outstanding awards under SBC plans 2.1 1.2 0.8 Weighted average number of shares (diluted) 145.2 140.6 131.8 For the year ended December 31, 2019 , we excluded 0.3 million stock options (year ended December 31, 2018 — 0.3 million ; year ended December 31, 2017 — 0.2 million ) from the diluted weighted average per share calculation as they were out-of-the-money. References to shares in this note 23 are to our SVS and MVS taken collectively. |
Commitments, Contingencies and
Commitments, Contingencies and Guarantees | 12 Months Ended |
Dec. 31, 2019 | |
Other Provisions, Contingent Liabilities And Contingent Assets [Abstract] | |
Commitments, Contingencies and Guarantees | COMMITMENTS, CONTINGENCIES AND GUARANTEES: At December 31, 2019 , we have commitments under IT support agreements that require future minimum payments as follows: 2020 $ 24.4 2021 18.6 2022 14.9 2023 14.5 2024 12.6 Thereafter 49.8 Total future minimum payments $ 134.8 As at December 31, 2019 , management had approved $23.1 for capital expenditures, primarily for machinery and equipment to support new customer programs, and issued $6.0 of such amount in purchase orders to third-party vendors. We have contingent liabilities in the form of letters of credit, letters of guarantee and surety bonds (collectively, Guarantees) which we have provided to various third parties. The Guarantees cover various payments, including customs and excise taxes, utility commitments and certain bank guarantees. At December 31, 2019 , we had $34.5 of Guarantees ( December 31, 2018 — $35.7 ), including $21.2 ( December 31, 2018 — $21.3 ) of letters of credit outstanding under our Revolver. We are required to make contributions to our pension and non-pension post-employment benefit plans, quarterly mandatory principal repayments under the Term Loans, certain annual mandatory prepayments under the Credit Facility under specified circumstances, payments of outstanding amounts under the Credit Facility at maturity, and contractual payments under our lease obligations (see notes 12 and 19 ). We are also required to make interest payments on amounts outstanding under the Credit Facility, and to pay fees and charges related to our Credit Facility, our A/R sales program and SFPs, and under our interest rate swap agreements, the amounts under the swap to be determined based on market rates at the time the interest payments are due (see notes 12 and 21 ). See note 21 for our obligations under the foreign exchange contracts we held at December 31, 2019 . In addition to the Guarantees described above, we provide routine indemnifications, the terms of which range in duration and often are not explicitly defined. These may include indemnifications against third-party intellectual property infringement claims and certain third-party negligence claims for property damage. We have also provided indemnifications in connection with the sale of certain businesses and real property. The maximum potential liability from these indemnifications cannot be reasonably estimated. In some cases, we have recourse against other parties to mitigate our risk of loss from these indemnifications. Historically, we have not made significant payments relating to these types of indemnifications. In March 2019, as part of the Toronto property sale (see note 7), we entered into a 10 -year lease for our new corporate headquarters, to be built by the Assignee on the site of our former location. The commencement date of the lease will be determined by the Assignee, and is currently targeted to be May 2022. Upon such commencement, our estimated annual basic rent will be approximately $2.5 million Canadian dollars for each of the first five years, and approximately $2.7 million Canadian dollars for each of the remaining five years. We may, at our option, extend the lease for two further consecutive five -year periods. Litigation: In the normal course of our operations, we may be subject to lawsuits, investigations and other claims, including environmental, labor, product, customer disputes, and other matters. Management believes that adequate provisions have been recorded where required. Although it is not always possible to estimate the extent of potential costs, if any, management believes that the ultimate resolution of all such pending matters will not have a material adverse impact on our financial performance, financial position or liquidity. Income taxes: We are subject to tax audits in various jurisdictions. Reviews by tax authorities generally focus on, but are not limited to, the validity of our inter-company transactions, including financing and transfer pricing policies which may involve subjective areas of taxation and significant judgment. The successful pursuit of assertions made by any taxing authority could result in our owing significant amounts of tax, interest and possibly penalties. We believe we adequately accrue for any probable potential adverse tax ruling. However, there can be no assurance as to the final resolution of any claims and any resulting proceedings. If any claims and any ensuing proceedings are determined adversely to us, the amounts we may be required to pay could be material, in excess of amounts accrued, and/or have a significant adverse impact on our earnings and cash flows. Other matters: In 2017, the Brazilian Ministry of Science, Technology, Innovation and Communications issued assessments seeking to disqualify certain research and development (R&D) expenses for the years 2006 to 2009, which entitled our Brazilian subsidiary (which ceased operations in 2009) to charge reduced sales tax levies to its customers. The assessments against our Brazilian subsidiary, which (including interest and penalties) total approximately 39 million Brazilian real (approximately $10 at year-end exchange rates) for such years, remain under appeal. Although we cannot predict the outcome of this matter, we believe that our R&D activities for the period are supportable, and it is probable that our position will be sustained upon full examination by the appropriate Brazilian authorities and, if necessary, upon consideration by the Brazilian judicial courts. Our position is supported by our Brazilian legal advisers. There were no changes in the status of this matter during either 2018 or 2019 . |
Segment and Geographic Informat
Segment and Geographic Information | 12 Months Ended |
Dec. 31, 2019 | |
Operating Segments [Abstract] | |
Segment and Geographic Information | SEGMENT AND GEOGRAPHIC INFORMATION: Operating segments are defined as components of an enterprise that engage in business activities from which they may earn revenue and incur expenses; for which discrete financial information is available; and whose operating results are regularly reviewed by the chief operating decision maker in deciding how to allocate resources and to assess performance. No operating segments have been aggregated to determine our reportable segments. During Q1 2018, we completed a reorganization of our reporting structure, including our sales, operations and management systems, into two operating and reportable segments: ATS and CCS. Previously, we operated in one reportable segment (Electronic Manufacturing Services), which was comprised of multiple end markets (ATS, Communications and Enterprise during 2017). The change resulted from modifications to our organizational and internal management structure initiated in 2017 and completed in early 2018. As a result, commencing in Q1 2018, our Chief Executive Officer (CEO), who is our chief operating decision maker, reviews segment revenue, segment income and segment margin (described below) to assess performance and make decisions about resource allocation. Our 2017 financial information was previously reclassified to reflect the reorganized segment structure. Factors considered in determining the two reportable segments included the nature of applicable business activities, management structure, market strategy and margin profiles. Our ATS segment consists of our ATS end market, and is comprised of our aerospace and defense, industrial, energy, healthtech, and capital equipment (including semiconductor, display, and power & signal distribution equipment) businesses. Products and services in this segment are extensive and are often more regulated than in our CCS segment, and can include the following: government-certified and highly-specialized manufacturing, electronic and enclosure-related services for aerospace and defense-related customers; high-precision equipment and integrated subsystems used in the manufacture of semiconductors and displays; a wide range of industrial automation, controls, test and measurement devices; advanced solutions for surgical instruments, diagnostic imaging and patient monitoring; and efficiency products to help manage and monitor the energy and power industries. Our ATS segment businesses typically have a higher margin profile, higher working capital requirements, and longer product life cycles than the businesses in our CCS segment. Our CCS segment consists of our Communications and Enterprise end markets. Our Enterprise end market is comprised of our servers and storage businesses. Products and services in this segment consist predominantly of enterprise-level data communications and information processing infrastructure products, and can include routers, switches, servers and storage-related products used by a wide range of businesses and cloud-based and other service providers to manage digital connectivity, commerce and social media applications. Our CCS segment businesses typically have a lower margin profile, lower working capital requirements, and higher volumes than the businesses in our ATS segment, and have been impacted in recent periods (and continue to be impacted) by aggressive pricing, rapid shifts in technology, model obsolescence and the commoditization of certain products. Segment performance is evaluated based on segment revenue, segment income and segment margin (segment income as a percentage of segment revenue). Revenue is attributed to the segment in which the product is manufactured or the service is performed. Segment income is defined as a segment’s net revenue less its cost of sales and its allocable portion of selling, general and administrative expenses and research and development expenses (collectively, Segment Costs). Identifiable Segment Costs are allocated directly to the applicable segment while other Segment Costs, including indirect costs and certain corporate charges, are allocated to our segments based on an analysis of the relative usage or benefit derived by each segment from such costs. Segment income excludes finance costs (defined in note 17), employee SBC expense, amortization of intangible assets (excluding computer software), Other Charges (recoveries) (defined below), other solar charges (consisting of non-cash charges we recorded in 2017 to write-down the carrying value of our then-remaining solar panel inventory and A/R balances), and fair value adjustments for acquired inventory (see note 3), as these costs and charges/recoveries are managed and reviewed by our CEO at the company level. Other Charges (recoveries) consist of, in applicable periods, restructuring charges (recoveries), impairment charges (recoveries), Acquisition Costs (defined in note 3), legal settlements (recoveries), Transition Costs (Recoveries) (defined in note 16(c)), Credit Facility-related charges (described in note 16(d)), and losses incurred on specified benefit plans (described in note 16(b)). Our segments do not record inter-segment revenue. Although segment income and segment margin are used to evaluate the performance of our segments, we may incur operating costs in one segment that may also benefit the other segment. Our accounting policies for segment reporting are the same as those applied to the company as a whole. Information regarding each reportable segment for the periods indicated is set forth below: Revenue by segment: Year ended December 31 2017 2018 2019 % of total % of total % of total ATS $ 1,958.6 32 % $ 2,209.7 33 % $ 2,285.6 39 % CCS 4,184.1 68 % 4,423.5 67 % 3,602.7 61 % Total $ 6,142.7 $ 6,633.2 $ 5,888.3 Segment income, segment margin, and reconciliation of segment income to IFRS earnings before income taxes: Year ended December 31 2017 2018 2019 Segment Margin Segment Margin Segment Margin ATS segment income and margin $ 96.8 4.9 % $ 102.5 4.6 % $ 64.2 2.8 % CCS segment income and margin 120.4 2.9 % 111.4 2.5 % 93.9 2.6 % Total segment income 217.2 213.9 158.1 Reconciling items: Finance costs 10.1 24.4 49.5 Employee SBC expense 30.1 33.4 34.1 Amortization of intangible assets (excluding computer software) 5.5 11.6 24.6 Other Charges (Recoveries) (note 16) 37.0 61.0 (49.9 ) Inventory fair value adjustment (note 3) — 1.6 — Other solar charges (inventory and A/R write-down) 1.4 — — IFRS earnings before income taxes $ 133.1 $ 81.9 $ 99.8 The following table details our external revenue allocated by manufacturing location among countries that generated 10% or more of total revenue for the years indicated: Year ended December 31 2017 2018 2019 Thailand 34 % 32 % 34 % China 21 % 20 % 18 % Malaysia 12 % 12 % 12 % The following table details our allocation of property, plant and equipment and, commencing in 2019, ROU assets among countries that represented 10% or more of total property, plant and equipment and ROU assets for the years indicated: December 31 2018 2019 China 19 % 14 % Thailand 16 % 16 % Malaysia 13 % * Romania 15 % 11 % United States 15 % 16 % Canada * * * Less than 10%. The following table details our allocation of intangible assets and goodwill* among countries that represented 10% or more of total intangible assets and goodwill for the years indicated: December 31 2018 2019 United States 96 % 86 % South Korea * 10 % * For purposes of this table, intangible assets and goodwill acquired as part of our Impakt acquisition were originally allocated in full to the United States in 2018. In 2019, however, upon finalizing the purchase price allocation, we allocated Impakt's intangible assets and goodwill between the United States and South Korea. Customers: The following table sets forth the customers that individually represented 10% or more of total revenue for the years indicated, and their segments: Segment Year ended December 31 2017 2018 2019 Cisco Systems, Inc. CCS 18 % 14 % 12 % Dell Technologies CCS * 10 % * Juniper Networks, Inc. CCS 13 % * * Total 31 % 24 % 12 % * Less than 10%. At December 31, 2019 , we had two customers that individually represented 10% or more of total A/R (one from each of our segments) (December 31, 2018 — two customers (in our CCS segment); December 31 2017 — two customers (one from each of our segments)). |
Basis of Preparation and Sign_2
Basis of Preparation and Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure Of Significant Accounting Policies [Abstract] | |
Statement of compliance | Statement of compliance: The consolidated financial statements have been prepared in accordance with International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board (IASB). The consolidated financial statements were authorized for issuance by our Board of Directors on March 12, 2020 . |
Functional and presentation currency | Functional and presentation currency: The consolidated financial statements are presented in U.S. dollars, which is also our functional currency. Unless otherwise noted, all financial information is presented in millions of U.S. dollars (except percentages and per share amounts). |
Use of estimates and judgments | Use of estimates and judgments: The preparation of financial statements in conformity with IFRS requires management to make judgments, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets and liabilities, revenue and expenses, and related disclosures with respect to contingent assets and liabilities. We base our judgments, estimates and assumptions on current facts, historical experience and various other factors that we believe are reasonable under the circumstances. The economic environment could also impact certain estimates necessary to prepare our consolidated financial statements, including significant estimates and discount rates applicable to the determination of the recoverable amounts used in our impairment testing of our non-financial assets. Our assessment of these factors forms the basis for our judgments on the carrying values of our assets and liabilities, and the accrual of our costs and expenses. Actual results could differ materially from our estimates and assumptions. We review our estimates and underlying assumptions on an ongoing basis and make revisions as determined necessary by management. Revisions are recognized in the period in which the estimates are revised and may impact future periods as well. Key sources of estimation uncertainty and judgment: We have applied significant estimates, judgment and assumptions in the following areas which we believe could have a significant impact on our reported results and financial position: our determination of the timing of revenue recognition; our measurement of income taxes; the determination of our cash generating units (CGUs*); whether events or changes in circumstances are indicators that an impairment review of our assets or CGUs should be conducted; the measurement of our CGUs' recoverable amounts, which includes estimating future growth, profitability, discount and terminal growth rates, and the fair value of any real property; and the allocation of the purchase price and other valuations related to our business acquisitions. We describe our use of judgment and estimation uncertainties in greater detail in the accounting policies described under “Significant Accounting Policies” below. |
Recently adopted and recently issued accounting pronouncements | Recently adopted accounting standards: Initial adoption and application of IFRS 16, Leases: Effective January 1, 2019, we adopted IFRS 16 , Leases, which brings most leases on-balance sheet for lessees under a single model, eliminating the distinction between operating and finance leases. IFRS 16 supersedes IAS 17, Leases , and related interpretations. In connection therewith, as of such date, we recognize right-of-use (ROU) assets and related lease obligations as of the applicable lease commencement date. ROU assets represent our right to use such leased assets, and our lease obligations represent our related lease payment obligations. In adopting this standard, we applied the modified retrospective approach, permitting us to recognize the cumulative effect of such adoption as an adjustment to our opening balance sheet as of January 1, 2019, without restatement of prior period comparative information. Upon initial adoption of IFRS 16, we recognized ROU assets of $111.5 and related lease obligations of $112.0 (see below), and reduced our accrued liabilities by $0.5 on our consolidated balance sheet as of January 1, 2019 . There was no net impact on our deficit as of January 1, 2019. When measuring our lease obligations, we discounted our lease payments using a weighted-average rate of 4.7% as of January 1, 2019 (representing our incremental borrowing rate as of such date). In computing the initial adjustment, we elected to apply the practical expedients available under IFRS 16, and accordingly did not recognize ROU assets and related lease obligations for low-value leases, or for leases with terms of 12 months or less. We continue to expense the costs of these low-value and short-term leases in our consolidated statement of operations on a straight-line basis over the lease term. In addition, as IFRS 16 did not require us to reassess whether a contract is, or contains, a lease as of the date of initial application, we maintained the lease determinations used under previous accounting rules. The amortization of the ROU assets is recognized as a depreciation charge, and the interest expense on the related lease obligations is recognized as finance costs in our consolidated statement of operations. Prior to the adoption of IFRS 16, we recognized operating lease expenses on a straight-line basis over the lease term generally in cost of sales or SG&A in our consolidated statement of operations. There were no changes to our existing finance leases required by the adoption of IFRS 16, which we continue to capitalize at their commencement (included in property, plant and equipment on our consolidated balance sheet), and include the corresponding liability, net of finance costs, on our consolidated balance sheet (see note 12 ). |
Basis of measurement | Basis of measurement: These consolidated financial statements have been prepared primarily on the historical cost basis. Other measurement bases, where used, are described in the applicable notes. |
Basis of consolidation | Basis of consolidation: These consolidated financial statements include our direct and indirect subsidiaries, all of which are wholly-owned. Any subsidiaries that are formed or acquired during the year are consolidated from their respective dates of formation or acquisition. Inter-company transactions and balances are eliminated on consolidation. |
Business combinations | Business combinations: We use the acquisition method to account for any business combinations. All identifiable assets and liabilities are recorded at fair value as of the acquisition date. Any goodwill that arises from business combinations is tested annually for impairment (see note 2 (j) ). Potential obligations for contingent consideration and other contingencies are also recorded at fair value as of the acquisition date. We record subsequent changes in the fair value of such potential obligations from the date of acquisition to the settlement date in our consolidated statement of operations. We expense integration costs (for the establishment of business processes, infrastructure and information systems for acquired operations) and acquisition-related consulting and transaction costs as incurred in our consolidated statement of operations. We use judgment to determine the estimates used to value identifiable assets and liabilities, and the fair value of potential obligations, if applicable, at the acquisition date. We may engage third parties to determine the fair value of certain inventory, property, plant and equipment and intangible assets. We use estimates to determine cash flow projections, including the period of expected future benefit, and future growth and discount rates, among other factors, to value intangible assets and contingent consideration. The fair value of acquired tangible assets are measured by applying the market, cost or replacement cost, or the income approach (using discounted cash flows and forecasts by management), as appropriate. |
Foreign currency translation | Foreign currency translation: The majority of our subsidiaries have a U.S. dollar functional currency, which represents the currency of the primary economic environment in which they operate. For these subsidiaries, we translate monetary assets and liabilities denominated in foreign currencies into U.S. dollars at the period-end exchange rates. We translate non-monetary assets and liabilities denominated in foreign currencies into U.S. dollars at historic rates, and we translate revenue and expenses into U.S. dollars at the average exchange rates prevailing during the month of the transaction. Exchange gains and losses also arise on the settlement of foreign-currency denominated transactions. We recognize foreign currency differences arising on translation in our consolidated statement of operations. For our subsidiaries with a non-U.S. dollar functional currency, we translate assets and liabilities into U.S. dollars using the period-end exchange rates, and we translate revenue and expenses into U.S. dollars at the average exchange rates prevailing during the month of the transaction. We defer gains and losses arising from the translation of these operations in the foreign currency translation account included in accumulated other comprehensive income (loss) (OCI). |
Cash and cash equivalents | Cash and cash equivalents: Cash and cash equivalents include cash on account and short-term investments with original maturities of three months or less. These instruments are subject to an insignificant risk of change in fair value over their terms and, as a result, we carry cash and cash equivalents at cost. |
Inventories | Inventories: We procure inventory and manufacture based on specific customer orders and forecasts and value our inventory on a first-in, first-out basis at the lower of cost and net realizable value. The cost of our finished goods and work in progress includes direct materials, labor and overhead. We may require valuation adjustments if actual market conditions or demand for our customers' products or services are less favorable than originally projected. The determination of net realizable value involves significant management judgment. We consider factors such as shrinkage, the aging of and future demand for the inventory, and contractual arrangements with customers. We attempt to utilize excess inventory in other products we manufacture or return inventory to the relevant suppliers or customers. We use future sales volume forecasts to estimate excess inventory on-hand. A change to these assumptions may impact our inventory valuation and our gross margins. Should circumstances change, we may adjust our previous write-downs in our consolidated statement of operations in the period a change in estimate occurs. |
Property, plant and equipment | Property, plant and equipment: We carry property, plant and equipment at cost less accumulated depreciation and accumulated impairment losses. Cost consists of expenditures directly attributable to the acquisition of the asset. We capitalize the cost of an asset when the economic benefits associated with that asset are probable and when the cost can be measured reliably. We capitalize the costs of major renovations and we write-off the carrying amount of replaced assets. We expense all other maintenance and repair costs in our consolidated statement of operations as incurred. We do not depreciate land. We recognize depreciation expense on a straight-line basis over the estimated useful life of the asset as follows: Buildings Up to 40 years Building/leasehold improvements Up to 40 years or term of lease Machinery and equipment 3 to 15 years We estimate the useful life of property, plant and equipment based on the nature of the asset, historical experience, expected changes in technology, and the expected duration of related customer programs. When major components of an asset have a significantly different useful life than their primary asset, the components are accounted for and depreciated separately. We review our estimates of residual values, useful lives and the methods of depreciation annually at year end and, if required, adjust for these prospectively. We determine gains and losses on the disposal or retirement of property, plant and equipment by comparing the proceeds from disposal with the carrying amount of the asset and we recognize these gains and losses in our consolidated statement of operations in the period of disposal. |
Leases | Leases: We are the lessee of property, plant and equipment, primarily buildings and machinery. At the inception of a contract, we assess whether an arrangement is, or contains, a lease in accordance with IFRS 16. Where we determine there is a lease under IFRS 16, we recognize an ROU asset (representing our right to use such leased asset) and a related lease obligation on the applicable lease commencement date. An ROU asset is first measured based on the initial amount of the related lease obligation, subject to certain adjustments, if any, and then subsequently measured at such cost less accumulated depreciation and accumulated impairment losses (see note 2(j)). Depreciation expense on an ROU asset is recorded on a straight-line basis over the lease term in cost of sales or SG&A in our consolidated statement of operations, primarily based on the nature and use of the asset. The lease obligation is initially measured at the present value of the unpaid lease payments on the commencement date, discounted using the interest rate implicit in the lease (if readily determinable) or otherwise on our incremental borrowing rate (taking country-specific risks into consideration) on the lease commencement date. We generally use our incremental borrowing rate as the discount rate. The interest expense on the related lease obligation is recognized as finance costs in our consolidated statement of operations. The lease obligation is remeasured when there are adjustments to future lease payments arising from a change in applicable indices or rates, changes in the estimated amount expected to be payable under a residual value guarantee, or if we change our assessments of whether we will exercise an applicable purchase, extension or termination option. Upon any such remeasurement, a corresponding adjustment is made to the carrying amount of the related ROU asset, or is recorded in our consolidated statement of operations if the carrying amount of such ROU asset has been impaired. We expense the costs of the low-value and short-term leases in our consolidated statement of operations on a straight-line basis over the lease term. We capitalize finance leases at their commencement, at the lower of the fair value of the leased asset and the present value of the minimum lease payments (included in property, plant and equipment on our consolidated balance sheet), and include the corresponding liability, net of finance costs, on our consolidated balance sheet. Prior to the adoption of IFRS 16, we recognized operating lease expenses on a straight-line basis over the lease term generally in cost of sales or SG&A in our consolidated statement of operations. |
Goodwill and intangible assets | Goodwill and intangible assets: Goodwill: We initially record goodwill related to acquisitions on our consolidated balance sheet in the amount of the excess of the fair value of the aggregate consideration paid (including the estimated fair value of any contingent consideration) over the fair value of the identifiable net assets acquired. In subsequent reporting periods, we measure goodwill at cost less accumulated impairment losses, if any. We do not amortize goodwill. For purposes of impairment testing, we allocate goodwill to the CGU, or group of CGUs, that we expect will benefit from the related acquisition. See note 2 (j) , “Impairment of goodwill, intangible assets, property, plant and equipment, and ROU assets.” Intangible assets: We record intangible assets on our consolidated balance sheet at fair value on the date of acquisition. We capitalize intangible assets when the economic benefits associated with the asset are probable and when the cost can be measured reliably. We estimate the useful life of intangible assets based on the nature of the asset, historical experience and the projected period of expected future economic benefits to be provided by the asset. In subsequent reporting periods, we measure intangible assets at cost less accumulated amortization and accumulated impairment losses, if any. We amortize these assets on a straight-line basis over their estimated useful lives as follows: Intellectual property 3 to 5 years Other intangible assets 4 to 15 years Computer software assets 1 to 10 years Intellectual property assets consist primarily of certain non-patented intellectual property and process technology. Other intangible assets consist primarily of customer relationships and contract intangibles. Computer software assets consist primarily of software licenses. We review our estimates of residual values, useful lives and the methods of amortization annually at year end and, if required, adjust for these prospectively. We reflect changes in useful lives on a prospective basis. |
Impairment of goodwill, intangible assets, property, plant and equipment, and ROU assets | Impairment of goodwill, intangible assets, property, plant and equipment, and ROU assets: We review the carrying amount of goodwill, intangible assets, property, plant and equipment, and commencing in 2019, ROU assets for impairment whenever events or changes in circumstances (triggering events) indicate that the carrying amount of such assets, or the related CGU or CGUs, may not be recoverable. If any such indication exists, we test the carrying amount of such assets or CGUs for impairment. In addition to an assessment of triggering events during the year, we conduct an annual impairment assessment of CGUs with goodwill in the fourth quarter of each year to correspond with our annual planning cycle (Annual Impairment Assessment). Judgment is required in the determination of: (i) our CGUs, which includes an assessment of whether the relevant asset, or group of assets, largely generates independent cash inflows, and an evaluation of how management monitors the business operations pertaining to such asset, or asset group; and (ii) whether events or changes in circumstances during the year are indicators that a review for impairment should be conducted. We recognize an impairment loss when the carrying amount of an asset, CGU or group of CGUs exceeds its recoverable amount. The recoverable amount of an asset, CGU or group of CGUs is measured as the greater of its expected value-in-use and its estimated fair value less costs of disposal. The process of determining the recoverable amount is subjective and requires management to exercise significant judgment in estimating future growth, profitability, discount and terminal growth rates, the fair value of any real property, and in projecting future cash flows, among other factors. Determination of our expected value-in-use is based on a discounted cash flow analysis of the relevant asset, CGU or group of CGUs. The process of determining the estimated fair value less costs of disposal requires valuations and use of appraisals. Future events and changing market conditions may impact our assumptions as to prices, costs or other factors that may result in changes in our estimates of future cash flows. Where applicable, we engage independent brokers to obtain market prices to estimate our real property and other asset values. We recognize impairment losses in our consolidated statement of operations. If it is determined that an impairment exists, we first allocate the impairment losses to the relevant CGU (or group of CGUs) to reduce the carrying amount of its (or their) goodwill, and then to reduce the carrying amount of other assets in such CGU (or group of CGUs), generally on a pro-rata basis. See notes 7, 8 and 9 . We do not reverse impairment losses for goodwill in future periods. We reverse impairment losses for property, plant and equipment, ROU assets and intangible assets if the losses we recognized in prior periods no longer exist or have decreased as a result of changes in circumstances. At each reporting date, we review for indicators that could change the estimates we used to determine the recoverable amount of the relevant assets. The amount of the reversal will be limited to the carrying amount that would have been determined, net of depreciation or amortization, had we recognized no impairment loss in prior periods. |
Provisions | Provisions: We recognize a provision for legal or constructive obligations arising from past events when the amount can be reliably estimated and it is probable that an outflow of resources will be required to settle an obligation. The nature and type of provisions vary and management judgment is required to determine the extent of an obligation and whether the outflow of resources is probable. At the end of each reporting period, we evaluate the appropriateness of the remaining balances. We may require adjustments to the recorded amounts to reflect actual experience or changes in estimates in future periods. Restructuring: We incur restructuring charges relating to workforce reductions, site consolidations, and costs associated with businesses we are downsizing or exiting. Our restructuring charges include employee severance and benefit costs, consultant costs, gains, losses or impairments related to owned sites and equipment we no longer use and which are available for sale, impairment of related intangible assets, and costs or impairments related to leased sites and equipment we no longer use. The recognition of restructuring charges requires management to make certain judgments and estimates regarding the nature, timing and amounts associated with our restructuring actions. Our assumptions include the timing of employees to be terminated, the measurement of termination costs, any anticipated sublease recoveries from exited sites, and the timing of disposition and estimated fair values less costs of disposal for assets we no longer use and which are available for sale. We develop detailed plans and record termination costs in the period the employees are informed of their termination. For owned sites and equipment that are no longer in use and are available for sale, we recognize an impairment loss based on their estimated fair value less costs of disposal, with fair value estimated based on market prices for similar assets. We may engage third parties to assist in the determination of the estimated fair values less costs of disposal for these assets. For leased sites that we intend to exit in connection with restructuring activities, we assess the recoverability of our ROU assets, and write down such assets (recorded as restructuring charges) if the carrying value exceeds any estimated sublease recoveries. To estimate future sublease recoveries, we may engage independent brokers to determine the estimated tenant rents we can expect to realize. At the end of each reporting period, we evaluate the appropriateness of our restructuring charges and balances. Adjustments to the recorded amounts may be required to reflect actual experience or changes in estimates for future periods. See note 16 (a) . Legal and other contingencies: In the normal course of our operations, we may be subject to lawsuits, investigations and other claims, including, but not limited to, environmental, labor, product, customer disputes, and other matters. The filing of a suit or formal assertion of a claim does not automatically trigger a requirement to record a provision. We record a provision for loss contingencies, including legal claims, based on management’s estimate of the probable outcome. Judgment is required when there is a range of possible outcomes. Management considers the degree of probability of the outcome and the ability to make a reasonable estimate of the loss. We may also use third party advisors in making our determination. The ultimate outcome, including the amount and timing of any payments required, may vary significantly from our original estimates. Potential material legal and other material contingent obligations that have not been recognized as provisions, as the outcome is remote or not probable, or the amount cannot be reliably estimated, are disclosed as contingent liabilities. See note 24 . Warranty: We offer product and service warranties to our customers. We record a provision for future warranty costs based on management’s estimate of probable claims under these warranties. In determining the amount of the provision, we consider several factors including the terms of the warranty (which vary by customer, product or service), the current volume of products sold or services rendered during the warranty period, and historical warranty information. We review and adjust these estimates as necessary to reflect our experience and new information. The amount and aging of our provision will vary depending on various factors including the length of the warranty offered, the remaining life of the warranty and the extent and timing of warranty claims. We classify the portion of our warranty provision for which payment is expected in the next 12 months as current, and the remainder as non-current. |
Employee benefits | Employee benefits: Pension and non-pension post-employment benefits: We classify pension and non-pension post-employment benefits as either defined contribution plans or defined benefit plans. Under defined contribution plans, our obligation is to make a fixed contribution to a separate entity. The related investment risk is borne by the employee. We recognize our obligations to make contributions to defined contribution plans as an employee benefit expense in our consolidated statement of operations in the period the employee services are rendered. Under defined benefit plans, our obligation is to provide an agreed-upon benefit to specified plan participants. We remain exposed to the actuarial and investment risks with respect to defined benefit plans. Our obligation is actuarially determined using the projected unit credit method, based on service and management’s estimates. Actuarial valuations require management to make certain judgments and estimates relating to salary escalation, compensation levels at the time of retirement, retirement ages, the discount rate used in measuring the net interest on the net defined benefit asset or liability, and expected healthcare costs (as applicable). These actuarial assumptions could change from period-to-period and actual results could differ materially from the estimates originally made by management. We evaluate our assumptions on a regular basis, taking into consideration current market conditions and historical data. Market driven changes may affect the actual rate of return on plan assets compared to our assumptions, as well as our discount rates and other variables which could cause actual results to differ materially from our estimates. Changes in assumptions could impact our defined benefit pension plan valuations and our future defined benefit pension expense and required funding. Our obligation for each defined benefit plan consists of the present value of the defined benefit obligation less the fair value of plan assets, and is presented on a net basis on our consolidated balance sheet. When the actuarial calculation results in a benefit, the asset we recognize is restricted to the present value of economic benefits available in the form of future refunds from the plan or reductions in future contributions to the plan. To calculate the present value of economic benefits, we also consider any minimum funding requirements that apply to the plan. An economic benefit is available if it is realizable during the life of the plan, or on settlement of the plan liabilities. We recognize past service costs or credits arising from plan amendments, whether vested or unvested, immediately in our consolidated statement of operations. We determine the net interest expense (income) on the net defined benefit liability (asset) for each year by applying the discount rate used to measure the defined benefit obligation at the beginning of the year to the net defined benefit liability (asset) position, taking into account any changes in the net defined benefit liability (asset) during the year as a result of contributions and benefit payments. Net interest expense and other expenses related to defined benefit plans are recognized in our consolidated statement of operations. The difference between the interest income on plan assets and the actual net return on plan assets is included in the re-measurement of the net defined benefit liability (asset). We recognize actuarial gains and losses on plan assets or obligations, as well as any year over year change in the impairment of the balance sheet position in OCI and we reclassify the amounts to deficit. Curtailment gains or losses may arise from significant changes to a plan. We record curtailment gains or losses in our consolidated statement of operations when the curtailment occurs. To mitigate the actuarial and investment risks of our defined benefit pension plans, we from time to time purchase annuities (using existing plan assets) from third party insurance companies for certain, or all, plan participants. The purchase of annuities by the pension plan substantially hedges the financial risks associated with our pension obligations. Where the annuities are purchased on behalf of, and held by the pension plan, the relevant employer retains the ultimate responsibility for the payment of benefits to plan participants, and we retain the pension assets and liabilities on our consolidated balance sheet. Our annuity purchases have resulted (and future annuity purchases may result) in losses, due to a reduction in the value of the plan assets relative to plan obligations as of the date of the annuity purchase. We record these non-cash losses in OCI on our consolidated balance sheet and simultaneously reclassify such amounts to deficit in the same period. Alternatively, where we purchase annuities from insurance companies on behalf of applicable plan participants with the intention of winding-up the relevant plan in the future (with the expectation of transferring the annuities to the individual plan members), the insurance company assumes responsibility for the payment of benefits to the relevant plan participants once the wind-up is complete. In this case, settlement accounting is applied to the purchase of the annuities and the loss (if any) is recorded in other charges in our consolidated statement of operations. In addition, both the pension assets and liabilities will be removed from our consolidated balance sheet once the wind-up of the plan is complete. |
Stock-based compensation (SBC) | Stock-based compensation (SBC): We generally grant performance share units (PSUs) and restricted share units (RSUs), and from time to time grant stock options, to employees under our SBC plans. Stock options and RSUs vest in installments over the vesting period. Stock options generally vest 25% per year over a four -year period, and RSUs generally vest one-third per year over a three -year period. We treat each installment under a grant of stock options and RSUs as a separate grant in determining the compensation expense. PSUs vest at the end of their respective terms, generally three years from the grant date, to the extent that specified performance conditions have been met. Stock options: Stock options are exercisable for SVS. We recognize the grant date fair value of stock options granted to employees as compensation expense in our consolidated statement of operations, with a corresponding charge to contributed surplus on our consolidated balance sheet, over the vesting period. We adjust compensation expense to reflect the estimated number of options we expect to vest at the end of the vesting period. When options are exercised, we credit the proceeds to capital stock on our consolidated balance sheet. We measure the fair value of stock options using the Black-Scholes option pricing model. Measurement inputs include the price of our SVS on the grant date, the exercise price of the stock option, and our estimates of the following: expected price volatility of our SVS (based on weighted average historic volatility), weighted average expected life of the stock option (based on historical experience and general option holder behavior), and the risk-free interest rate. RSUs: The cost we recorded for RSUs is based on the market value of our SVS at the time of grant. We amortize the cost of RSUs to compensation expense in our consolidated statement of operations, with a corresponding charge to contributed surplus on our consolidated balance sheet, over the vesting period. Unless a grantee has been authorized, and elects, to settle RSUs in cash, we generally intend to settle these awards with SVS purchased in the open market by a broker, or issued from treasury. PSUs granted in 2017: The cost we recorded for 40% of PSUs granted in 2017 was based on the market value of our SVS at the time of grant. The cost we recorded for these PSUs, which vested based on a non-market performance condition related to the achievement of pre-determined financial targets over a specified period, was based on our estimate of the outcome of such performance condition. During 2019, these PSUs were modified to more closely align the performance condition with the Company’s strategic objectives. As a result, vesting of these PSUs was revised to be based on the Company’s average performance on such measure over the three -year vesting period relative to the average performance on such measure of a pre-determined EMS competitor group over such period (instead of the Company’s relative performance in the final year of the vesting period). The modification impacted the vesting expectation for these awards but did not result in any incremental fair value. We adjusted the cost of these PSUs as new facts and circumstances arose; the timing of these adjustments was subject to judgment. We recorded adjustments to the cost of these PSUs in the final year of the three -year term based on management's estimate of the expected level of achievement of such performance condition. We amortized the cost of these PSUs to compensation expense in our consolidated statement of operations, with a corresponding charge to contributed surplus on our consolidated balance sheet, over the vesting period. We settled the vested PSUs with SVS primarily issued from treasury. We determined the cost we recorded for 60% of PSUs granted in 2017 using a Monte Carlo simulation model. The number of awards expected to vest was factored into the grant date Monte Carlo valuation for the award. The number of these PSUs that vested depended on the level of achievement of total shareholder return (TSR), which is a market performance condition, relative to the TSR of a pre-defined group of companies over a three -year period. We did not adjust the grant date fair value regardless of the eventual number of awards that vested based on the level of achievement of the market performance condition. We recognized compensation expense in our consolidated statement of operations on a straight-line basis over the requisite service period and we reduced this expense for the estimated PSU awards that were not expected to vest because the employment conditions were not expected to be satisfied. We settled the vested PSUs with SVS primarily issued from treasury. PSUs granted in 2018 and 2019: The cost we recorded for the PSUs granted in each of 2018 and 2019 was based on our estimate of the outcome of specified performance conditions. The number of PSUs granted in each of 2018 and 2019 that will actually vest will vary from 0 % to 200% of a target amount granted based on the level of achievement of a pre-determined non-market performance measurement in the final year of the three -year performance period, subject to modification by a separate pre-determined non-market financial target and our relative TSR performance (compared to a pre-defined group of companies) over the three -year vesting period. We estimated the grant date fair value of the TSR modifier for these awards using a Monte Carlo simulation model. The grant date fair value for the non-TSR-based performance measurement and modifier was based on the market value of our SVS at the time of grant and is subject to adjustment in subsequent periods to reflect changes in the estimated level of achievement related to the applicable performance condition. We recognize compensation expense in our consolidated statement of operations on a straight-line basis over the requisite service period and we reduce this expense for the estimated PSU awards that are not expected to vest because the employment conditions are not expected to be satisfied. Unless a grantee has been authorized, and elects, to settle PSUs in cash, we generally intend to settle these awards with SVS purchased in the open market by a broker or issued from treasury. DSUs: The compensation of our Board of Directors is comprised of annual Board retainer fees, annual Audit and Compensation Committee Chair retainer fees (for the Chairs of those committees) and travel fees (collectively, Annual Fees) payable in quarterly installments in arrears. In 2017 and 2018, directors were required to elect to have either 75% or 100% of their Annual Fees paid in deferred share units (DSUs). Commencing January 1, 2019, directors must elect to receive 0% , 25% or 50% of their Annual Fees in cash, with the balance in DSUs, until such director satisfies the requirements of the Company's Director Share Ownership Guidelines. Once a director has satisfied such requirements, the director may then elect to receive 0% , 25% or 50% of their Annual Fees in cash, with the balance either in DSUs or in RSUs (if no election is made, 100% of such director's Annual Fees will be paid in DSUs). The number of DSUs or RSUs we grant is determined by dividing the elected percentage of the dollar value of the Annual Fees earned in the quarter by the closing price of our SVS on the NYSE on the last business day of such quarter. Each DSU represents the right to receive one SVS or an equivalent value in cash after the individual ceases to serve as a director, and is neither an employee of the Company, nor a director or employee of any corporation that does not deal at arm's length with the Company (Retires). DSUs granted prior to January 1, 2007 may be settled with SVS issued from treasury or purchased in the open market, or with cash (at the discretion of the Company). DSUs granted after January 1, 2007 to directors as compensation may only be settled with SVS purchased in the open market, or with cash (at the discretion of the Company). Each quarterly grant of RSUs to directors vests ratably over a three -year period. Such RSUs are governed by the terms of our Long-Term Incentive Plan. Each vested RSU entitles the holder thereof to one SVS; however, if permitted by the Company under the terms of the grant, a director may elect to receive a payment of cash in lieu of SVS. Unvested RSUs will vest immediately on the date the director Retires. We expense the cost of DSUs and RSUs for directors through SG&A in our consolidated statement of operations in the period the services are rendered. |
Deferred financing costs | Deferred financing costs: Deferred financing costs consist of costs relating to the establishment or amendment of our credit facility. We defer financing costs related to our revolving facility as other assets on our consolidated balance sheet which we amortize to our consolidated statement of operations on a straight-line basis over the term of the revolving facility. We record financing costs relating to the issuance of our term loans as a reduction to the cost of the related debt (see note 12 ) which we amortize to our consolidated statement of operations using the effective interest rate method over the term of the related debt or when the debt is retired, if earlier. |
Income taxes | Income taxes: Our income tax expense for a reporting period is comprised of current and deferred income taxes. Current income taxes and deferred income taxes are recognized in our consolidated statement of operations, except to the extent that they relate to items recognized in OCI or directly in equity, in which case the taxes are also recognized in OCI or directly in equity, respectively. In the ordinary course of business, there are many transactions for which the ultimate tax outcome is uncertain until we resolve it with the relevant tax authority, which may take many years. The final tax outcome of these matters may be different from the estimates management originally made in determining our tax provision. Management periodically evaluates the positions taken in our tax returns with respect to situations in which applicable tax rules are subject to interpretation. We establish provisions related to tax uncertainties where appropriate, based on our estimate of the amount that ultimately will be paid to or received from the tax authorities. We recognize accrued interest and penalties relating to tax uncertainties in current income tax expense. The various judgments and estimates by management in establishing provisions related to tax uncertainties can significantly affect the amounts we recognize in our consolidated financial statements. We use the liability method of accounting for deferred income taxes. Under this method, we recognize deferred income tax assets and liabilities for future income tax consequences attributable to temporary differences between the financial statement carrying amounts of assets and liabilities and their respective income tax bases, and on unused tax losses and tax credit carryforwards. We measure deferred income taxes using tax rates and laws that have been enacted or substantively enacted at the reporting date and that we expect will apply when the related deferred income tax asset is realized or the deferred income tax liability is settled. We recognize deferred income tax assets to the extent we believe it is probable, based on management’s estimates, that future taxable profit will be available against which the deductible temporary differences as well as unused tax losses and tax credit carryforwards can be utilized. Estimates of future taxable profit in different tax jurisdictions are an area of estimation uncertainty. We review our deferred income tax assets at each reporting date and reduce them to the extent it is no longer probable that we will realize the related tax benefits; such reductions are reversed when the probability of future taxable profits improves. Unrecognized deferred tax assets are reassessed at each reporting date and recognized to the extent that it has become probable that future taxable profits will be available against which they can be used. We recognize the effect of a change in income tax rates in the period of enactment or substantive enactment. We do not recognize deferred income taxes if they arise from the initial recognition of goodwill, or for temporary differences arising from the initial recognition of an asset or a liability in a transaction that is not a business combination and that affects neither accounting nor taxable profit or loss. We also do not recognize deferred income taxes on temporary differences relating to investments in subsidiaries to the extent we are able to control the timing of the reversal of the temporary differences and it is probable that the temporary differences will not reverse in the foreseeable future. During each period, we record current income tax expense or recovery based on taxable income earned or loss incurred in each tax jurisdiction where we operate, and for any adjustments to taxes payable in respect of previous years, using tax laws that are enacted or substantively enacted at the balance sheet date. |
Financial assets and financial liabilities | Financial assets and financial liabilities: We recognize financial assets and financial liabilities initially at fair value and subsequently measure these at either fair value or amortized cost based on their classification as described below. |
Fair value through profit or loss (FVTPL) | Fair value through profit or loss (FVTPL): Financial assets and any financial liabilities that we purchase or incur, respectively, with the intention of generating earnings in the near term, and derivatives other than cash flow hedges, are classified as FVTPL. This category includes short-term investments in money market funds (if applicable) that we group with cash equivalents, and derivative assets and derivative liabilities that do not qualify for hedge accounting. For investments that we classify as FVTPL, we initially recognize such financial assets on our consolidated balance sheet at fair value and recognize subsequent changes in our consolidated statement of operations. We expense transaction costs as incurred in our consolidated statement of operations. |
Amortized cost | Amortized cost: Financial assets that we hold with the intention of collecting the contractual cash flows (in the form of payment of principal and related interest) are measured at amortized cost, and include our trade receivables, term deposits and non-customer receivables. We initially recognize the carrying amount of such assets on our consolidated balance sheet at fair value plus directly attributable transaction costs, and subsequently measure these at amortized cost using the effective interest rate method, less any impairment losses. |
Other financial liabilities | Other financial liabilities: This category is for our financial liabilities that are not classified as FVTPL, and includes our accounts payable (A/P), the majority of our accrued liabilities and certain other provisions, as well as borrowings under our credit facility, including our term loans. We record these financial liabilities at amortized cost on our consolidated balance sheet. |
Derivatives and hedge accounting | Derivatives and hedge accounting: We enter into forward exchange and swap contracts to hedge the cash flow risk associated with firm purchase commitments and forecasted transactions in foreign currencies that we consider to be highly probable, and to hedge foreign-currency denominated balances. We use estimates to forecast future cash flows and the future financial position of net monetary assets or liabilities denominated in foreign currencies. We enter into interest rate swap agreements to mitigate a portion of the interest rate risk on our term loan borrowings. We apply hedge accounting to those hedge transactions that are considered effective. Management assesses the effectiveness of hedges by comparing actual outcomes against our estimates on a regular basis. Subsequent revisions in estimates of future cash flow forecasts, if significant, may result in the discontinuation of hedge accounting for that hedge. We do not enter into derivative contracts for speculative purposes. At the inception of a hedging relationship, we formally document the relationship between our hedging instrument and the hedged item, as well as our risk management objectives and strategy for undertaking the various hedge transactions. Our process includes linking all derivatives to specific assets and liabilities on our consolidated balance sheet or to specific firm commitments or forecasted transactions. We also formally assess, both at the hedge’s inception and at the end of each quarter, whether the derivatives used in hedged transactions are highly effective in offsetting changes in the cash flows of the hedged items. We record the gain or loss from these forward exchange and swap contracts in the same line item where the underlying exposures are recognized in our consolidated statement of operations. For our non-designated hedges against our balance sheet exposures denominated in foreign currencies, we record the gain or loss from these forward exchange and swap contracts in SG&A in our consolidated statement of operations. Forward exchange and swap contracts that are not designated as hedges are marked to market each period, resulting in a gain or loss in our consolidated statement of operations. We measure all derivative contracts at fair value on our consolidated balance sheet. The majority of our derivative assets and liabilities arise from the foreign currency forward contracts and interest rate swaps that we designate as cash flow hedges. In a cash flow hedge, we defer the changes in the fair value of the hedging derivative, to the extent effective, in OCI until we recognize the asset, liability or forecasted transactions being hedged in our consolidated statement of operations. Any cash flow hedge ineffectiveness is recognized in our consolidated statement of operations immediately. For hedges that we discontinue before the end of the original hedge term, we amortize the unrealized hedge gain or loss in OCI in our consolidated statement of operations over the remaining term of the hedge. If the hedged item ceases to exist before the end of the original hedge term, we recognize the unrealized hedge gain or loss in OCI immediately in our consolidated statement of operations. For our current currency forward and swap cash flow hedges, the majority of the underlying expenses we hedge are included in cost of sales. For our interest rate swap agreements, the underlying interest expenses that we hedge are included in finance costs in our consolidated statement of operations. We value our derivative assets and liabilities based on inputs that are either readily available in public markets or derived from information available in public markets. The inputs we use include discount rates, forward exchange rates, interest rate yield curves and volatility, and credit risk adjustments. Changes in these inputs can cause significant volatility in the fair value of our financial instruments in the short-term. |
Impairment of financial assets | Impairment of financial assets: We review financial assets at each reporting date. Financial assets are deemed to be impaired when objective evidence resulting from one or more events subsequent to the initial recognition of the asset indicates the estimated future cash flows of the asset have decreased. We use a forward-looking expected credit loss (ECL) model in determining our allowance for doubtful accounts as it relates to trade receivables, contract assets (under IFRS 15), and other financial assets. Our allowance is based on historical experience, and includes consideration of the aging of the balances, the customer's creditworthiness, current economic conditions, expectation of bankruptcies, and political and economic volatility in the markets/location of our customers, among other factors. We measure an impairment loss as the excess of the carrying amount over the present value of the estimated future cash flows discounted using the financial asset’s original discount rate, and we recognize this loss in our consolidated statement of operations. A financial asset is written off or written down to its net realizable value as soon as it is known to be impaired. We adjust previous write-downs to reflect changes in estimates or actual experience. |
Revenue and deferred investment costs | Revenue and deferred investment costs: We derive the majority of our revenue from the sale of electronic products and services that we manufacture and provide to customer specifications. We recognize revenue from the sale of products and services rendered when our performance obligations have been satisfied or when the associated control over the products has passed to the customer and no material uncertainties remain as to the collection of our receivables. Under IFRS 15, where products are custom-made to meet a customer's specific requirements, and such customer is obligated to compensate us for the work performed to date, we recognize revenue over time as production progresses to completion, or as services are rendered. We generally estimate revenue for our work in progress based on costs incurred to date plus a reasonable profit margin for eligible products for which we do not have alternative uses. For other contracts that do not qualify for revenue recognition over time, we recognize revenue at the point in time where control is passed to the customer, which is generally upon shipment when no further performance obligation remains except for our standard manufacturing or service warranties. We apply significant estimates, judgment and assumptions in interpreting our customer contracts, determining the timing of revenue recognition and measuring work in progress. As our invoices are typically issued at the time of the delivery of final products to the customers, the earlier recognition of revenue on certain custom-made products has resulted in unbilled contract assets which we include in accounts receivable (A/R) on our consolidated balance sheet. We record certain investment costs, comprised of contract acquisition or fulfillment costs, to the extent the recoverability of these costs is probable, in other current and non-current assets on our consolidated balance sheet. We subsequently amortize these investment costs over the projected period of expected future economic benefits, or as recoveries are realized, from the new contracts. We monitor these deferred costs for potential impairment on a regular basis. |
Basis of Preparation and Sign_3
Basis of Preparation and Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure Of Significant Accounting Policies [Abstract] | |
Disclosure of Detailed Information About Leases | The following table sets forth the adjustments to our operating lease commitments at December 31, 2018 used to derive the lease obligations recognized on our initial application of IFRS 16 at January 1, 2019 : Operating lease commitments at December 31, 2018 $ 107.4 Discounted using our incremental borrowing rate at January 1, 2019 (13.2 ) Recognition exemption for short-term and low-value leases (1.9 ) Extension options reasonably certain to be exercised 19.7 Lease obligations recognized at January 1, 2019 under IFRS 16 112.0 Lease obligations previously classified as finance leases under IAS 17 10.4 Total lease obligations at January 1, 2019 $ 122.4 Other lease related expenses that were recognized in the consolidated statement of operations for 2019 are as follows: Year ended December 31 2019 Interest expense on lease obligations $ 6.6 Variable lease payments not included in the measurement of lease obligations $ 0.7 Expenses relating to short-term leases or low-value leases $ 4.6 At December 31, 2019 , the contractual undiscounted cash flows for our lease obligations (comprised of lease obligations under IFRS 16 and lease obligations financed through third-parties) were as follows: Years ending December 31 Leases financed through third-parties Other leases Total 2020 $ 1.6 $ 32.5 $ 34.1 2021 1.6 25.8 27.4 2022 1.4 20.7 22.1 2023 0.9 16.2 17.1 2024 — 11.2 11.2 Thereafter — 23.0 23.0 $ 5.5 $ 129.4 $ 134.9 At December 31, 2019 , we have commitments under IT support agreements that require future minimum payments as follows: 2020 $ 24.4 2021 18.6 2022 14.9 2023 14.5 2024 12.6 Thereafter 49.8 Total future minimum payments $ 134.8 |
Disclosure of Detailed Information About Property, Plant and Equipment | We recognize depreciation expense on a straight-line basis over the estimated useful life of the asset as follows: Buildings Up to 40 years Building/leasehold improvements Up to 40 years or term of lease Machinery and equipment 3 to 15 years Property, plant and equipment are comprised of the following: 2018 Cost Accumulated Net Book Land $ 26.8 $ 12.0 $ 14.8 Buildings including improvements 375.5 218.0 157.5 Machinery and equipment 781.2 588.2 193.0 $ 1,183.5 $ 818.2 $ 365.3 2019 Cost Accumulated Net Book Land $ 35.6 $ 12.0 $ 23.6 Buildings including improvements 351.7 197.1 154.6 Machinery and equipment 720.8 544.0 176.8 $ 1,108.1 $ 753.1 $ 355.0 The following table details the changes to the net book value of property, plant and equipment for the years indicated: Note Land Buildings Machinery Total Balance — January 1, 2018 $ 11.1 $ 141.6 $ 171.2 $ 323.9 Additions — 25.4 62.3 87.7 Acquisitions through business combinations 3 3.6 10.8 13.9 28.3 Depreciation — (20.4 ) (53.3 ) (73.7 ) Write down of assets and other disposals — — (0.9 ) (0.9 ) Foreign exchange and other 0.1 0.1 (0.2 ) — Balance — December 31, 2018 (i) 14.8 157.5 193.0 365.3 Transferred from assets held for sale 6 11.2 1.7 — 12.9 Additions — 21.7 55.1 76.8 Adjustment through business combinations (ii) 3 — — (0.3 ) (0.3 ) Depreciation — (20.1 ) (53.2 ) (73.3 ) Write down of assets and other disposals (iii) (iv) (2.5 ) (6.1 ) (17.6 ) (26.2 ) Foreign exchange and other 0.1 (0.1 ) (0.2 ) (0.2 ) Balance — December 31, 2019 (i) $ 23.6 $ 154.6 $ 176.8 $ 355.0 (i) The net book value of property, plant and equipment at December 31, 2019 included $7.5 ( December 31, 2018 — $12.8 ) of leases financed through third parties. See note 12 for the future minimum lease payments under these leases. (ii) Adjustments were made in 2019 to reflect the fair value of assets acquired in connection with the Impakt acquisition. (iii) Includes the disposal of our Toronto real property in March 2019. See " Toronto Real Property and Related Transactions " below. (iv) Includes the write-down of equipment primarily related to our capital equipment business and other disengaged programs (recorded as restructuring charges). See note 16(a). |
Disclosure of Detailed Information About Intangible Assets | We amortize these assets on a straight-line basis over their estimated useful lives as follows: Intellectual property 3 to 5 years Other intangible assets 4 to 15 years Computer software assets 1 to 10 years |
Acquisitions (Tables)
Acquisitions (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Business Combinations1 [Abstract] | |
Details of the Purchase Price Allocation by Year of Acquisition | Details of our final purchase price allocation for the Atrenne and Impakt acquisitions are as follows: Atrenne Impakt Current assets*, net of cash acquired ($1.1 for Atrenne and $5.9 for Impakt) $ 31.5 $ 49.2 Property, plant and equipment and other long-term assets 7.8 20.6 Customer intangible assets and computer software assets 51.0 219.3 Goodwill 62.6 112.6 Current liabilities (8.5 ) (25.8 ) Deferred income taxes and other-long-term liabilities (4.1 ) (51.8 ) $ 140.3 $ 324.1 |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Inventories [Abstract] | |
Schedule of Current Inventory | Inventories are comprised of the following: December 31 2018 2019 Raw materials $ 948.8 $ 868.3 Work in progress 101.5 77.1 Finished goods 39.6 46.8 $ 1,089.9 $ 992.2 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Property, plant and equipment [abstract] | |
Disclosure of Detailed Information About Property, Plant and Equipment | We recognize depreciation expense on a straight-line basis over the estimated useful life of the asset as follows: Buildings Up to 40 years Building/leasehold improvements Up to 40 years or term of lease Machinery and equipment 3 to 15 years Property, plant and equipment are comprised of the following: 2018 Cost Accumulated Net Book Land $ 26.8 $ 12.0 $ 14.8 Buildings including improvements 375.5 218.0 157.5 Machinery and equipment 781.2 588.2 193.0 $ 1,183.5 $ 818.2 $ 365.3 2019 Cost Accumulated Net Book Land $ 35.6 $ 12.0 $ 23.6 Buildings including improvements 351.7 197.1 154.6 Machinery and equipment 720.8 544.0 176.8 $ 1,108.1 $ 753.1 $ 355.0 The following table details the changes to the net book value of property, plant and equipment for the years indicated: Note Land Buildings Machinery Total Balance — January 1, 2018 $ 11.1 $ 141.6 $ 171.2 $ 323.9 Additions — 25.4 62.3 87.7 Acquisitions through business combinations 3 3.6 10.8 13.9 28.3 Depreciation — (20.4 ) (53.3 ) (73.7 ) Write down of assets and other disposals — — (0.9 ) (0.9 ) Foreign exchange and other 0.1 0.1 (0.2 ) — Balance — December 31, 2018 (i) 14.8 157.5 193.0 365.3 Transferred from assets held for sale 6 11.2 1.7 — 12.9 Additions — 21.7 55.1 76.8 Adjustment through business combinations (ii) 3 — — (0.3 ) (0.3 ) Depreciation — (20.1 ) (53.2 ) (73.3 ) Write down of assets and other disposals (iii) (iv) (2.5 ) (6.1 ) (17.6 ) (26.2 ) Foreign exchange and other 0.1 (0.1 ) (0.2 ) (0.2 ) Balance — December 31, 2019 (i) $ 23.6 $ 154.6 $ 176.8 $ 355.0 (i) The net book value of property, plant and equipment at December 31, 2019 included $7.5 ( December 31, 2018 — $12.8 ) of leases financed through third parties. See note 12 for the future minimum lease payments under these leases. (ii) Adjustments were made in 2019 to reflect the fair value of assets acquired in connection with the Impakt acquisition. (iii) Includes the disposal of our Toronto real property in March 2019. See " Toronto Real Property and Related Transactions " below. (iv) Includes the write-down of equipment primarily related to our capital equipment business and other disengaged programs (recorded as restructuring charges). See note 16(a). |
Right-Of-Use Assets (Tables)
Right-Of-Use Assets (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Right-Of-Use Assets [Abstract] | |
Disclosure Of Information Of The Net Book Value Of Right-Of-Use Asset | The following table details the changes to the net book value of ROU assets during 2019: Land Buildings Other Total Balance — January 1, 2019 $ 7.3 $ 103.5 $ 0.7 $ 111.5 Additions — 27.5 2.1 29.6 Depreciation (0.6 ) (31.6 ) (0.3 ) (32.5 ) Write down of assets and lease terminations (i) — (4.7 ) — (4.7 ) Foreign exchange and other 0.3 — (0.1 ) 0.2 Balance — December 31, 2019 $ 7.0 $ 94.7 $ 2.4 $ 104.1 (i) During 2019, we recorded $1.0 (as restructuring charges) to write down certain ROU assets in connection with restructuring actions pertaining to vacated properties, resulting in part from sublet recoveries that were lower than the carrying value of the related leases. See note 16 (a). We also terminated several leases in connection with restructuring actions and de-recognized $3.7 of ROU assets in connection therewith. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Intangible Assets [Abstract] | |
Disclosure of Changes in Goodwill and Intangible Assets | Goodwill and intangible assets are comprised of the following: 2018 Cost Accumulated Net Book Goodwill $ 253.8 $ 55.4 $ 198.4 Intellectual property $ 111.3 $ 111.3 $ — Other intangible assets 508.0 238.2 269.8 Computer software assets 290.1 276.3 13.8 $ 909.4 $ 625.8 $ 283.6 2019 Cost Accumulated Net Book Goodwill $ 253.7 $ 55.4 $ 198.3 Intellectual property $ 111.3 $ 111.3 $ — Other intangible assets 503.2 260.9 242.3 Computer software assets 291.1 282.1 9.0 $ 905.6 $ 654.3 $ 251.3 The following table details the changes to the net book value of goodwill and intangible assets for the years indicated: Note Goodwill Other Computer Total Balance — January 1, 2018 $ 23.2 $ 10.4 $ 11.2 $ 44.8 Additions — — 3.3 3.3 Acquisitions through business combinations 3 175.2 271.0 3.0 449.2 Amortization — (11.6 ) (3.8 ) (15.4 ) Foreign exchange and other — — 0.1 0.1 Balance — December 31, 2018 198.4 269.8 13.8 482.0 Additions — — 1.8 1.8 Adjustment through business combinations (i) 3 — (3.0 ) (0.7 ) (3.7 ) Amortization — (24.6 ) (5.0 ) (29.6 ) Write down of assets — — (0.8 ) (0.8 ) Foreign exchange and other (0.1 ) 0.1 (0.1 ) (0.1 ) Balance — December 31, 2019 $ 198.3 $ 242.3 $ 9.0 $ 449.6 (i) Adjustments were made in 2019 to reflect the fair value of assets acquired in connection with the Impakt acquisition. |
Disclosure of Assumptions For Annual Impairment Assessments of Goodwill | We used the following assumptions for purposes of our Annual Impairment Assessments of goodwill for the periods shown: Assumption Capital equipment CGU A&D CGU Atrenne CGU Annual revenue growth rate (1) 2019 — 13% over 5 year period; 2019 — modest growth over 5 year period; 2019 — 4% over 5 year period; Average annual margins 2019 — above company margins; 2019 — slightly above company margins; 2019 — above company margins; Discount rate 2019 —13%; 2019 — 10%; 2019 — 10%; (2) 2018 — 13%; (1) Supported by new business awarded in recent years, the expectation of future new business awards, and growth due to our acquisitions. (2) The decrease in the discount rate used for our Atrenne CGU is supported by the overall decrease in our weighted average cost of capital, as well as the overall strong performance of this business since its acquisition. |
Other Non-Current Assets (Table
Other Non-Current Assets (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Subclassifications of assets, liabilities and equities [abstract] | |
Disclosure of Detailed Information About Non-current Assets | December 31 Note 2018 2019 Net pension assets 19 $ 4.5 $ 5.1 Land rights 10.1 9.7 Deferred investment costs 2.9 1.9 Deferred financing costs 2.1 2.2 Other 10.6 7.5 $ 30.2 $ 26.4 |
Provisions (Tables)
Provisions (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Other Provisions, Contingent Liabilities And Contingent Assets [Abstract] | |
Disclosure of Changes in Provisions | The following chart details the changes in our provisions for the year indicated: Restructuring Warranty Legal (i) Other (ii) Total Balance — December 31, 2018 $ 10.3 $ 18.7 $ 1.1 $ 7.5 $ 37.6 Provisions 28.9 11.2 — 0.6 40.7 Reversal of prior year provisions (iii) (0.8 ) (3.0 ) — (0.3 ) (4.1 ) Payments/usage (26.5 ) (5.0 ) — (0.4 ) (31.9 ) Accretion, foreign exchange and other (0.7 ) 0.2 (0.1 ) 0.2 (0.4 ) Balance — December 31, 2019 $ 11.2 $ 22.1 $ 1.0 $ 7.6 $ 41.9 Current $ 11.2 $ 13.5 $ 1.0 $ 0.4 $ 26.1 Non-current (iv) — 8.6 — 7.2 15.8 December 31, 2019 $ 11.2 $ 22.1 $ 1.0 $ 7.6 $ 41.9 (i) Legal represents our aggregate provisions recorded for various legal actions based on our estimates of the likely outcomes. (ii) Other represents our asset retirement obligations relating to properties that we currently lease. (iii) During 2019 , we reversed prior year warranty provisions as a result of expired warranties. (iv) Non-current balances are included in provisions and other non-current liabilities on our consolidated balance sheet. |
Credit Facilities and Lease O_2
Credit Facilities and Lease Obligations (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Financial Instruments [Abstract] | |
Borrowings Under the Revolving Facility and Term Loan and Lease Obligations | The following table sets forth our borrowings under our Credit Facility*, and our lease obligations, as of December 31, 2019 and 2018 : Note December 31 December 31 Borrowings under the Revolver (1) $ 159.0 $ — Borrowings under the Term Loans (2) 598.3 592.3 Total borrowings under Credit Facility 757.3 592.3 Less: unamortized debt issuance costs related to our Term Loans (2) (9.8 ) (9.7 ) Lease obligations, comprised of lease obligations under IFRS 16 and lease obligations financed through third parties (3) 2 10.4 116.1 $ 757.9 $ 698.7 Comprised of: Current portion of borrowings under Credit Facility and lease obligations $ 107.7 $ 139.6 Long-term portion of borrowings under Credit Facility and lease obligations 650.2 559.1 $ 757.9 $ 698.7 * excluding ordinary course letters of credit. (1) Debt issuance costs were incurred in connection with our Prior Revolver in 2014 ( $1.7 ) and the Revolver in 2018 ( $3.1 ) and 2019 ( $1.1 ), which we deferred as other assets on our consolidated balance sheets and amortize over the term of the relevant revolver. See note 10 for the long-term portion of the deferred financing costs. We accelerated the amortization of $0.6 , representing the remaining portion of unamortized deferred financing costs related to the Prior Revolver, upon termination of the Prior Facility, and recorded it to other charges in June 2018. (2) Debt issuance costs were incurred in connection with our Prior Term Loan in 2015 ( $2.1 ), the Term Loans in 2018 ( $10.3 ) and 2019 ( $1.6 ), which we deferred as long-term debt on our consolidated balance sheets and amortize over the term of the relevant term loan using the effective interest rate method. We accelerated the amortization of $0.6 , representing the remaining portion of unamortized deferred financing costs related to the Prior Term Loan, upon termination of the Prior Facility, and recorded it to other charges in June 2018. (3) As of December 31, 2019 , the current portion of lease obligations was $28.4 (2018 — $3.2 ) and the long-term portion was $87.7 (2018 — $7.2 ). The balance at December 31, 2019 included $111.2 of lease obligations under IFRS 16. |
Mandatory Principal Repayments of the Term Loan | At December 31, 2019 , the aggregate remaining mandatory principal repayments of the Term Loans were as follows, including a mandatory Term Loan prepayment of $107.0 due in 2020 based on specified excess cash flow for 2019 (we are currently unable to determine whether further mandatory principal repayments of the Term Loans based on specified excess cash flow or cash proceeds will be required subsequent to 2020): Years ending December 31 Amount 2020 $ 113.0 2021 6.0 2022 6.0 2023 6.0 2024 6.0 2025 (to maturity in June 2025) 455.3 $ 592.3 |
Contractual Undiscounted Cash Flows For Lease Obligations | The following table sets forth the adjustments to our operating lease commitments at December 31, 2018 used to derive the lease obligations recognized on our initial application of IFRS 16 at January 1, 2019 : Operating lease commitments at December 31, 2018 $ 107.4 Discounted using our incremental borrowing rate at January 1, 2019 (13.2 ) Recognition exemption for short-term and low-value leases (1.9 ) Extension options reasonably certain to be exercised 19.7 Lease obligations recognized at January 1, 2019 under IFRS 16 112.0 Lease obligations previously classified as finance leases under IAS 17 10.4 Total lease obligations at January 1, 2019 $ 122.4 Other lease related expenses that were recognized in the consolidated statement of operations for 2019 are as follows: Year ended December 31 2019 Interest expense on lease obligations $ 6.6 Variable lease payments not included in the measurement of lease obligations $ 0.7 Expenses relating to short-term leases or low-value leases $ 4.6 At December 31, 2019 , the contractual undiscounted cash flows for our lease obligations (comprised of lease obligations under IFRS 16 and lease obligations financed through third-parties) were as follows: Years ending December 31 Leases financed through third-parties Other leases Total 2020 $ 1.6 $ 32.5 $ 34.1 2021 1.6 25.8 27.4 2022 1.4 20.7 22.1 2023 0.9 16.2 17.1 2024 — 11.2 11.2 Thereafter — 23.0 23.0 $ 5.5 $ 129.4 $ 134.9 At December 31, 2019 , we have commitments under IT support agreements that require future minimum payments as follows: 2020 $ 24.4 2021 18.6 2022 14.9 2023 14.5 2024 12.6 Thereafter 49.8 Total future minimum payments $ 134.8 |
Capital Stock (Tables)
Capital Stock (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Share Capital and Share-based Payment Arrangements [Abstract] | |
Disclosure of Detailed Information About Capital Transactions | Capital transactions: Number of shares (in millions) SVS MVS Issued and outstanding at December 31, 2016 121.9 18.9 Issued from treasury (i) 2.8 — Cancelled under NCIB (1.9 ) — Other (ii) 0.35 (0.35 ) Issued and outstanding at December 31, 2017 123.2 18.6 Issued from treasury (i) 1.3 — Cancelled under NCIB (6.8 ) — Issued and outstanding at December 31, 2018 117.7 18.6 Issued from treasury (i) 0.8 — — Cancelled under NCIB (8.3 ) — — Issued and outstanding at December 31, 2019 110.2 18.6 (i) During 2019 , we issued nil ( 2018 — 0.1 million ; 2017 — 1.7 million ) SVS from treasury upon the exercise of stock options for aggregate cash proceeds of nil ( 2018 — $0.4 ; 2017 — $13.6 ). We issued 0.8 million ( 2018 — 1.2 million ; 2017 — 1.1 million ) SVS from treasury with ascribed values of $10.4 ( 2018 — $14.3 ; 2017 — $9.8 ) upon the vesting of certain RSUs and PSUs. We also settled RSUs and PSUs with SVS purchased in the open market. Settlement of these awards is described below. (ii) During 2017, Onex Corporation converted 346,175 MVS into SVS. Onex Corporation did not convert any MVS in 2018 or 2019. |
Disclosure of repurchase and reverse repurchase agreements | Information regarding share repurchase activities under our NCIBs for the years indicated is set forth below: Year ended December 31 2017 2018 2019 Aggregate cost (1) of SVS repurchased for cancellation $ 19.9 $ 75.5 $ 67.3 Number of SVS repurchased for cancellation (in millions) 1.9 6.8 8.3 Weighted average price per share for repurchases $ 10.58 $ 11.10 $ 8.15 Aggregate cost (1) of SVS repurchased for delivery under SBC plans $ 16.7 $ 22.4 $ 9.2 Number of SVS repurchased for delivery under SBC plans (in millions) 1.4 2.1 1.2 (1) Includes transaction fees. December 31 2017 2018 2019 Number of SVS held by trustee for delivery under SBC plans (1) (in millions) 0.8 1.9 1.7 Value of SVS held by trustee for delivery under SBC plans (1) $ 8.7 $ 20.2 $ 14.8 (1) For accounting purposes, we classify these shares as treasury stock until they are delivered pursuant to the plans. |
Additional information about share-based payment arrangements | Information regarding director SBC expense for the years indicated is set forth below: Year ended December 31 2017 2018 2019 Director SBC expense in SG&A $ 2.2 $ 2.0 $ 2.4 December 31 2017 2018 2019 Number of DSUs outstanding (in millions) 1.5 1.6 1.8 Number of RSUs issued to directors outstanding (in millions) — — 0.02 Information regarding employee SBC expense for the years indicated is set forth below: Year ended December 31 2017 2018 2019 Employee SBC expense in cost of sales $ 14.6 $ 14.7 $ 14.6 Employee SBC expense in SG&A 15.5 18.7 19.5 Total $ 30.1 $ 33.4 $ 34.1 |
Disclosure of Detailed Information About Stock Option Transactions | Stock option transactions were as follows for the years indicated: Number of Weighted Average (in millions) Outstanding at January 1, 2017 2.1 $ 8.46 Exercised (1.7 ) $ 7.87 Outstanding at December 31, 2017 0.4 $ 12.14 Exercised (0.1 ) $ 6.20 Outstanding at December 31, 2018 0.3 $ 11.93 Exercised — $ — Outstanding at December 31, 2019 0.3 $ 12.50 |
Disclosure of Number and Weighted Average Remaining Contractual Life of Outstanding Share Options | The following stock options* were outstanding as at December 31, 2019 : Range of Exercise Prices Outstanding Weighted Average Weighted Average Remaining Life Exercisable Weighted Average (in millions) (years) (in millions) $6.35 - $13.46 0.3 $12.50 5.2 0.3 $12.50 * The exercise prices used in the above tables were determined by converting the grant date fair value into U.S. dollars at the year-end exchange rate. |
Disclosure of Range of Exercise Prices of Outstanding Share Options | The following stock options* were outstanding as at December 31, 2019 : Range of Exercise Prices Outstanding Weighted Average Weighted Average Remaining Life Exercisable Weighted Average (in millions) (years) (in millions) $6.35 - $13.46 0.3 $12.50 5.2 0.3 $12.50 * The exercise prices used in the above tables were determined by converting the grant date fair value into U.S. dollars at the year-end exchange rate. |
Disclosure of Detailed Information About RSU and PSU Transactions | Information regarding RSU and PSU grants to employees and directors (see below), as applicable, for the years indicated is set forth below: Year ended December 31 2017 2018 2019 RSUs Granted: Number of awards (in millions) 1.9 2.6 3.0 Weighted average grant date fair value per unit $ 13.05 $ 10.48 $ 7.88 PSUs Granted: Number of awards (in millions, representing 100% of target) 0.9 1.6 2.1 Weighted average grant date fair value per unit $ 17.18 $ 11.11 $ 8.14 December 31 2017 2018 2019 Number of outstanding RSUs (in millions) 3.2 3.8 4.6 Number of outstanding PSUs (in millions, representing 100% of target granted) 2.5 3.2 3.8 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss, Net of Tax (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Subclassifications of assets, liabilities and equities [abstract] | |
Disclosure of Detailed Information about Accumulated Other Comprehensive Income | Year ended December 31 Note 2017 2018 2019 Opening balance of foreign currency translation account $ (15.2 ) $ (14.5 ) $ (14.4 ) Foreign currency translation adjustments 0.7 0.1 (0.2 ) Closing balance (14.5 ) (14.4 ) (14.6 ) Opening balance of unrealized net gain (loss) on currency forward cash flow hedges $ (9.5 ) $ 7.8 $ (7.7 ) Net gain (loss) on currency forward cash flow hedges (i) 27.9 (14.7 ) 6.7 Reclassification of net loss (gain) on currency forward cash flow hedges to operations (ii) (10.6 ) (0.8 ) 4.1 Closing balance (iii) 7.8 (7.7 ) 3.1 Opening balance of unrealized net gain (loss) on interest rate swap cash flow hedges $ — $ — $ (4.4 ) Net loss on interest rate swap cash flow hedges — (4.8 ) (10.2 ) Reclassification of net loss on interest rate swap cash flow hedges to operations — 0.4 2.5 Closing balance (iv) — (4.4 ) (12.1 ) Actuarial gains (losses) on pension and non-pension post-employment benefit plans 19 $ (1.2 ) $ 8.4 $ (8.7 ) Reclassification of actuarial losses (gains) to deficit 1.2 (8.4 ) 8.7 Loss on purchase of pension annuities 19 (17.0 ) (63.3 ) — Reclassification of loss on purchase of pension annuities to deficit 19 17.0 63.3 — Closing balance — — — Accumulated other comprehensive loss $ (6.7 ) $ (26.5 ) $ (23.6 ) (i) Net of income tax expense of $0.2 for 2019 ( 2018 — net of $1.0 income tax benefit; 2017 — net of $2.8 income tax expense). (ii) Net of release of income tax benefit of $0.5 associated with the reclassification of net hedge (gain) loss to operations for 2019 ( 2018 — net of release of $0.7 of income tax expense; 2017 — net of release of $0.3 of income tax expense). (iii) Net of income tax expense of $0.2 as of December 31, 2019 ( December 31, 2018 — net of $0.5 of income tax benefit; December 31, 2017 — net of $1.2 of income tax expense). (iv) No income tax impact as of December 31, 2019 or December 31, 2018 . |
Expenses By Nature Expenses By
Expenses By Nature Expenses By Nature (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Analysis of income and expense [abstract] | |
Schedule Of Additional Information Of Expenses | Items included in our cost of sales and SG&A for the years indicated are set forth below: Year ended December 31 2017 2018 2019 Employee-related costs $ 726.4 $ 804.7 $ 815.2 SBC expense included in above employee-related costs 30.1 33.4 34.1 Freight and transportation costs 79.3 97.0 90.3 Depreciation expense (including depreciation on ROU assets in 2019) (i) 67.6 73.7 105.8 Rental expense (i) 28.5 35.4 5.3 (i) Effective January 1, 2019, we adopted the new lease accounting standards under IFRS 16 and recognized ROU assets and related lease obligations on our balance sheet. The amortization of the ROU assets is recorded as a depreciation expense ( $32.5 for 2019), and the interest expense on the related lease obligations is recognized as finance costs in our consolidated statement of operations. Prior to the adoption of IFRS 16, we recognized rental expenses on a straight-line basis over the lease term generally in cost of sales or SG&A in our consolidated statement of operations. We continue to expense the costs of low-value and short-term leases in our consolidated statement of operations on a straight-line basis over the lease term as rental expense ( $5.3 for 2019). See note 12 for disclosure of lease expenses. |
Other Charges (Recoveries) (Tab
Other Charges (Recoveries) (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Analysis of income and expense [abstract] | |
Disclosure of Detailed Information about Other Operating Expense | Year ended December 31 Note 2017 2018 2019 Restructuring charges (a) $ 28.9 $ 35.4 $ 37.9 Losses on pension and non-pension post-employment benefit plans (b) 19 1.9 — 4.1 Transition Costs (Recoveries) (c) 7 1.6 13.2 (95.8 ) Credit Facility-related charges (d) — 1.2 2.0 Acquisition Costs and other (e) 4.6 11.2 1.9 $ 37.0 $ 61.0 $ (49.9 ) |
Disclosure of Detailed Information about Restructuring and Related Costs | Our restructuring charges for the years indicated were comprised of the following: Year ended December 31 2017 2018 2019 Cash charges $ 25.1 $ 35.2 $ 28.1 Non-cash charges 3.8 0.2 9.8 $ 28.9 $ 35.4 $ 37.9 |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Related Party [Abstract] | |
Disclosure of Related Party Transactions | The aggregate compensation expenses we recognized under IFRS for our directors and senior executive officers were as follows: Year ended December 31 2017 2018 2019 Short-term employee benefits and costs $ 7.5 $ 6.2 $ 4.4 Post-employment and other long-term benefits 0.6 0.3 0.3 SBC (including DSUs and RSUs to eligible directors) 12.4 14.8 15.6 $ 20.5 $ 21.3 $ 20.3 |
Pension and Non-pension Post-_2
Pension and Non-pension Post-employment Benefit Plans (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Employee Benefits [Abstract] | |
Market Value of Plan Assets | The table below presents the market value of plan assets: Fair Market Actual Asset 2018 2019 2018 2019 Quoted market prices: Debt investment funds $ 10.2 $ 10.3 4 % 3 % Equity investment funds 6.6 7.4 2 % 2 % Non-quoted market prices: Insurance annuities 266.5 299.8 91 % 91 % Other 9.7 11.0 3 % 4 % Total $ 293.0 $ 328.5 100 % 100 % |
Summary of Financial Position of Pension and Other Benefit Plans | The following tables provide a summary of the financial position of our pension and other benefit plans: Pension Plans Other Benefit Plans 2018 2019 2018 2019 Plan assets, beginning of year $ 395.5 $ 293.0 $ — $ — Interest income 9.4 8.0 — — Actuarial gains (losses) in other comprehensive income (i) (82.2 ) 27.8 — — Administrative expenses paid from plan assets (1.4 ) (1.2 ) — — Employer contributions 2.7 2.9 — 0.9 Employer direct benefit payments 1.0 0.8 2.3 3.0 Employer direct settlement payments — — 2.5 5.2 Settlement payments from employer — — (2.5 ) (5.2 ) Settlement payments from plan 0.1 — — (0.2 ) Benefit payments from plan (12.7 ) (12.0 ) — (0.2 ) Benefit payments from employer (1.0 ) (0.8 ) (2.3 ) (3.0 ) Foreign currency exchange rate changes and other (18.4 ) 10.0 — 1.3 Plan assets, end of year $ 293.0 $ 328.5 $ — $ 1.8 (i) Actuarial gains or losses are determined based on actual return on plan assets less interest income as set forth in the table above. For 2018, includes a $63.3 loss resulting from the purchase of annuities in June 2018 (see note 19 (a) above). Pension Plans Other Benefit Plans 2018 2019 2018 2019 Accrued benefit obligations, beginning of year $ 355.8 $ 309.6 $ 75.5 $ 68.1 Current service cost 1.8 1.9 2.2 2.6 Past service cost and settlement/curtailment losses (i) 0.1 — 1.2 8.0 Interest cost 8.6 8.6 2.6 2.6 Actuarial losses (gains) in other comprehensive income from: — Changes in demographic assumptions (3.7 ) (0.4 ) — (1.7 ) — Changes in financial assumptions (19.9 ) 31.1 (3.5 ) 11.4 — Experience adjustments 0.2 (2.9 ) (0.5 ) (0.7 ) Settlement payments from employer — — (2.5 ) (5.2 ) Settlement payments from plan 0.1 — — (0.2 ) Benefit payments from plan (12.7 ) (12.0 ) — (0.2 ) Benefit payments from employer (1.0 ) (0.8 ) (2.3 ) (3.0 ) Foreign currency exchange rate changes and other (19.7 ) 10.9 (4.6 ) 5.7 Accrued benefit obligations, end of year $ 309.6 $ 346.0 $ 68.1 $ 87.4 Weighted average duration of benefit obligations (in years) 18 18 13 13 (i) For 2019, past service costs of $4.1 were incurred for additional obligations under our Thailand post-employment benefit plan as a result of recent changes in labor protection laws in Thailand that increase severance benefits for specified employees upon termination. See note 16 (b). The settlement losses relate to employee terminations in connection with 2019 restructuring actions. The present value of the defined benefit obligations, the fair value of plan assets and the surplus or deficit in our defined benefit pension and other benefit plans are summarized as follows: Pension Plans Other Benefit Plans 2018 2019 2018 2019 Accrued benefit obligations, end of year $ (309.6 ) $ (346.0 ) $ (68.1 ) $ (87.4 ) Plan assets, end of year 293.0 328.5 — 1.8 Deficiency of plan assets over accrued benefit obligations $ (16.6 ) $ (17.5 ) $ (68.1 ) $ (85.6 ) |
Schedule of Amounts Reported in Balance Sheet | The following table outlines the plan balances as reported on our consolidated balance sheet: December 31 December 31 2018 2019 Pension Other Total Pension Other Total Pension and non-pension post-employment benefit obligations $ (21.1 ) $ (67.7 ) $ (88.8 ) $ (22.6 ) $ (84.5 ) $ (107.1 ) Current other post-employment benefit obligations — (0.4 ) (0.4 ) — (1.1 ) (1.1 ) Non-current net pension assets (note 10) 4.5 — 4.5 5.1 — 5.1 $ (16.6 ) $ (68.1 ) $ (84.7 ) $ (17.5 ) $ (85.6 ) $ (103.1 ) |
Net Expense Recognized In Consolidated Statement of Operations For Pension and Non-pension Post-employment Benefit Plans | The following table outlines the net expense recognized in our consolidated statement of operations for pension and non-pension post-employment benefit plans: Pension Plans Other Benefit Plans 2017 2018 2019 2017 2018 2019 Current service cost $ 2.1 $ 1.8 $ 1.9 $ 2.0 $ 2.2 $ 2.6 Net interest cost (income) (1.3 ) (0.8 ) 0.6 2.6 2.6 2.6 Past service cost and settlement/curtailment losses 1.9 0.1 — 0.6 1.2 8.0 Plan administrative expenses and other 1.3 1.3 1.5 — — — 4.0 2.4 4.0 5.2 6.0 13.2 Defined contribution pension plan expense (note 19(c)) 9.4 9.6 10.1 — — — Total expense for the year $ 13.4 $ 12.0 $ 14.1 $ 5.2 $ 6.0 $ 13.2 |
Actuarial Gains and Losses, Net of Tax, Recognized in OCI and Reclassified | The following table outlines the gains and losses, net of tax, recognized in OCI and reclassified directly to deficit: Year ended December 31 2017 2018 2019 Cumulative losses (gains), beginning of year $ (4.1 ) $ 14.1 $ 69.0 Loss on pension annuity purchases (note 19(a)) 17.0 63.3 — Actuarial losses (gains) recognized during the year (i) 1.2 (8.4 ) 8.7 Cumulative losses (gains), end of year (ii) $ 14.1 $ 69.0 $ 77.7 (i) Net of income tax recovery of $0.3 for 2019 ( 2018 — net of $0.1 income tax recovery; 2017 — nil income tax recovery). (ii) Net of income tax recovery of $1.1 as at December 31, 2019 ( December 31, 2018 — net of $0.8 income tax recovery; December 31, 2017 — net of $0.7 income tax recovery). |
Percentages and Assumptions Used in Measuring the Plans | The following percentages and assumptions were used in measuring the plans for the years indicated: Pension Plans Other Benefit Plans 2017 2018 2019 2017 2018 2019 Weighted average discount rate at December 31 (i) for: Benefit obligations 2.5 2.9 2.1 3.6 3.8 2.9 Net pension cost 2.6 2.5 2.9 3.9 3.6 3.8 Weighted average rate of compensation increase for: Benefit obligations 4.0 4.1 3.8 4.6 4.2 4.6 Net pension cost 3.9 4.0 4.1 4.6 4.6 4.2 Healthcare cost trend rates: Immediate trend — — — 5.8 5.7 5.3 Ultimate trend — — — 4.5 4.0 4.0 Year the ultimate trend rate is expected to be achieved — — — 2030 2040 2040 (i) The weighted average discount rate is determined using publicly available rates for highly-rated bonds by currency in countries where we have a pension or non-pension benefit plan. A lower discount rate would increase the present value of the benefit obligation. |
Disclosure of Sensitivity Analysis for Actuarial Assumptions | A one percentage-point increase or decrease in one of the following actuarial assumptions, holding other assumptions constant in each case, would increase (decrease) our benefit obligations as follows: Pension Plans Other Benefit Plans Year ended Year ended 1% Increase 1% Decrease 1% Increase 1% Decrease Discount rate $ (54.5 ) $ 70.6 $ (10.5 ) $ 12.9 Healthcare cost trend rate $ — $ — $ 7.2 $ (5.9 ) |
Schedule of Plan Contributions | We made the following plan contributions for the years indicated below and estimate our contribution for 2020 to be as follows: Year ended December 31 Estimated Contribution * 2017 2018 2019 2020 Defined contribution plan $ 9.4 $ 9.6 $ 10.1 $ 10.1 Defined benefit plan 2.5 3.7 3.7 3.0 Total $ 11.9 $ 13.3 $ 13.8 $ 13.1 Non-pension post-employment benefit plans (i) $ 4.5 $ 4.8 $ 9.1 $ 4.4 * Our actual contributions could differ materially from these estimates. (i) For 2019, includes higher settlement payments related to employee terminations in connection with our restructuring actions taken during the year. See note 16(a). |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Income Taxes [Abstract] | |
Disclosure Of Major Components Of Tax Expense | Year ended December 31 2017 2018 2019 Current income tax expense: Current year (i) $ 39.3 $ 44.4 $ 35.1 Adjustments for prior years, including changes to net provisions related to tax uncertainties (ii) (0.2 ) (4.7 ) (12.3 ) 39.1 39.7 22.8 Deferred income tax expense (recovery): Origination and reversal of temporary differences (i) (iii) (5.6 ) 6.2 15.4 Changes in previously unrecognized tax losses and deductible temporary differences, including adjustments for prior years (iii) (iv) (5.9 ) (62.9 ) (8.7 ) (11.5 ) (56.7 ) 6.7 Income tax expense (recovery) $ 27.6 $ (17.0 ) $ 29.5 |
Disclosure Of Reconciliation Of Income Taxes Calculated At The Statutory Income Tax Rate To The Effective Tax Rate | A reconciliation of income taxes calculated at the statutory income tax rate to the income tax expense at the effective tax rate is as follows: Year ended December 31 2017 2018 2019 Earnings before income taxes $ 133.1 $ 81.9 $ 99.8 Income tax expense at Celestica’s statutory income tax rate of 26.5% (2018 and 2017 — 26.5%) $ 35.3 $ 21.7 $ 26.4 Impact on income taxes from: Manufacturing and processing deduction (0.1 ) (0.1 ) — Foreign income taxed at different rates (7.6 ) (9.1 ) (6.7 ) Foreign exchange (6.8 ) 3.8 5.0 Other, including non-taxable/non-deductible items and changes to net provisions related to tax uncertainties (i) (ii) (iii) 3.4 11.3 (5.8 ) Change in tax rates — — (0.8 ) Change in unrecognized tax losses and deductible temporary differences (iii) (iv) 3.4 (44.6 ) 11.4 Income tax expense (recovery) $ 27.6 $ (17.0 ) $ 29.5 (i) These line items for 2017 in the two tables above were negatively impacted by a deferred tax expense of $4.0 related to taxable temporary differences associated with the then-anticipated repatriation of undistributed earnings from certain of our Chinese subsidiaries, of which $3.5 was realized as a current tax expense for withholding tax on dividends paid in 2018. These line items for 2019 in the two tables above were negatively impacted by a deferred tax expense of $6.0 related to taxable temporary differences associated with the anticipated repatriation of undistributed earnings from certain of our Chinese and Thai subsidiaries. (ii) These line items for 2019 in the two tables above include tax benefits related to return-to-provision adjustments and reversals of previously-recorded tax liabilities and uncertainties (discussed below). (iii) These line items for 2019 in the two tables above include the tax expense related to the taxable portion of the Property Gain and the recognition of offsetting previously-unrecognized tax losses (discussed below). (iv) These line items for 2018 in the two tables above include the recognition of an aggregate of $53.3 of deferred tax assets in our U.S. group of subsidiaries (discussed below). |
Changes In Deferred Tax Assets And Liabilities | Changes in deferred tax assets and liabilities for the periods indicated are as follows: Unrealized Accounting Pensions and Tax Property, Other Reclassification between deferred tax assets and deferred tax liabilities (i) Total Deferred tax assets: Balance — January 1, 2018 $ — $ 8.8 $ — $ 34.6 $ 6.3 $ — $ (12.1 ) $ 37.6 Credited (charged) to net earnings — 2.1 — 36.8 — 17.1 — 56.0 Credited (charged) directly to equity — — — (9.8 ) — 1.7 — (8.1 ) Effects of foreign exchange — (0.1 ) — (2.1 ) — 0.1 — (2.1 ) Other — — — — (6.3 ) (4.1 ) (36.3 ) (46.7 ) Balance — December 31, 2018 — 10.8 — 59.5 — 14.8 (48.4 ) 36.7 Credited (charged) to net earnings — (1.0 ) 0.6 2.1 — (3.1 ) — (1.4 ) Credited (charged) directly to equity — — — 0.3 — (0.6 ) — (0.3 ) Additions from business combinations — (0.1 ) — — — — — (0.1 ) Effects of foreign exchange — (0.1 ) — 1.0 — 0.3 — 1.2 Other — — (0.8 ) — — — (1.7 ) (2.5 ) Balance — December 31, 2019 $ — $ 9.6 $ (0.2 ) $ 62.9 $ — $ 11.4 $ (50.1 ) $ 33.6 Deferred tax liabilities: Balance — January 1, 2018 $ 25.2 $ — $ 10.6 $ — $ — $ 4.1 $ (12.1 ) $ 27.8 Charged (credited) to net earnings 1.5 — — — (2.3 ) — — (0.8 ) Charged (credited) directly to equity — — (9.9 ) — — — — (9.9 ) Additions from business combinations — — — — 56.6 — — 56.6 Effects of foreign exchange (2.1 ) — 0.1 — 0.5 — — (1.5 ) Other — — — — (6.3 ) (4.1 ) (36.3 ) (46.7 ) Balance — December 31, 2018 24.6 — 0.8 — 48.5 — (48.4 ) 25.5 Charged (credited) to net earnings 0.8 — — — 4.5 — — 5.3 Additions from business combinations — — — — (0.9 ) — — (0.9 ) Effects of foreign exchange 1.0 — — — — — — 1.0 Other — — (0.8 ) — — — (1.7 ) (2.5 ) Balance — December 31, 2019 $ 26.4 $ — $ — $ — $ 52.1 $ — $ (50.1 ) $ 28.4 (i) This reclassification reflects the offsetting of deferred tax assets and deferred tax liabilities to the extent they relate to the same taxing authorities and there is a legally enforceable right to such offset. |
Financial Instruments and Ris_2
Financial Instruments and Risk Management (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Financial Instruments [Abstract] | |
Disclosure of Detailed Information about Cash and Cash Equivalents | Cash and cash equivalents are comprised of the following: December 31 2018 2019 Cash $ 409.1 $ 446.3 Cash equivalents 12.9 33.2 $ 422.0 $ 479.5 |
Disclosure of Risks from Financial Instruments | The local currency amounts have been converted to U.S. dollar equivalents using spot rates at December 31, 2019 . Canadian Romanian Leu Euro Thai baht Chinese renminbi Cash and cash equivalents $ 2.0 $ 0.6 $ 19.5 $ 2.7 $ 37.1 A/R 3.1 0.5 46.4 1.0 12.1 Income taxes and value-added taxes receivable — 0.5 1.1 1.2 2.4 Other financial assets — 0.7 1.7 0.6 0.3 Pension and non-pension post-employment liabilities (69.8 ) (0.1 ) (0.6 ) (13.3 ) (0.7 ) Income taxes and value-added taxes payable (1.4 ) — (0.6 ) (2.1 ) (6.7 ) A/P and certain accrued and other liabilities and provisions (54.4 ) (10.5 ) (39.2 ) (31.9 ) (28.3 ) Net financial assets (liabilities) $ (120.5 ) $ (8.3 ) $ 28.3 $ (41.8 ) $ 16.2 |
Disclosure of Foreign Currency Risk Analysis | The financial impact of a one-percentage point strengthening or weakening of the following currencies against the U.S. dollar for our financial instruments denominated in such non-functional currencies is summarized in the following table as at December 31, 2019 . The financial instruments impacted by a change in exchange rates include our exposures to the above financial assets or liabilities denominated in non-functional currencies and our foreign exchange forward contracts and swaps. Canadian Romanian Leu Euro Thai baht Chinese renminbi Increase (decrease) 1% Strengthening Net earnings $ (0.2 ) $ (0.1 ) $ 0.1 $ (0.1 ) $ — Other comprehensive income 1.0 0.3 — 0.7 0.3 1% Weakening Net earnings 0.2 0.1 (0.1 ) 0.1 — Other comprehensive income (1.0 ) (0.3 ) — (0.7 ) (0.3 ) |
Disclosure of Fair Value Measurement of Assets | In the table below, we have segregated our financial assets and liabilities that are measured at fair value, based on the inputs used to determine fair value at the measurement date. The three levels within the fair value hierarchy, based on the reliability of inputs, are as follows: • Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities; • Level 2 inputs are inputs other than quoted prices included in Level 1 that are observable for the asset or liability either directly ( i.e. prices) or indirectly ( i.e. derived from prices); and • Level 3 inputs are inputs for the asset or liability that are not based on observable market data ( i.e. unobservable inputs). December 31, 2018 December 31, 2019 Level 1 Level 2 Level 1 Level 2 Assets: Foreign currency forwards and swaps $ — $ 2.1 $ — $ 7.4 Liabilities: Interest rate swaps $ — $ (4.4 ) $ — $ (12.1 ) Foreign currency forwards and swaps — (16.3 ) — (2.9 ) $ — $ (20.7 ) $ — $ (15.0 ) |
Disclosure of Fair Value Measurement of Liabilities | In the table below, we have segregated our financial assets and liabilities that are measured at fair value, based on the inputs used to determine fair value at the measurement date. The three levels within the fair value hierarchy, based on the reliability of inputs, are as follows: • Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities; • Level 2 inputs are inputs other than quoted prices included in Level 1 that are observable for the asset or liability either directly ( i.e. prices) or indirectly ( i.e. derived from prices); and • Level 3 inputs are inputs for the asset or liability that are not based on observable market data ( i.e. unobservable inputs). December 31, 2018 December 31, 2019 Level 1 Level 2 Level 1 Level 2 Assets: Foreign currency forwards and swaps $ — $ 2.1 $ — $ 7.4 Liabilities: Interest rate swaps $ — $ (4.4 ) $ — $ (12.1 ) Foreign currency forwards and swaps — (16.3 ) — (2.9 ) $ — $ (20.7 ) $ — $ (15.0 ) |
Disclosure of Derivatives and Hedging Activities | At December 31, 2019 and 2018 , we had foreign exchange forwards and swaps to trade U.S. dollars in exchange for the following currencies: As at December 31, 2019 Currency Contract amount Weighted average Maximum Fair value Canadian dollar $ 195.6 $ 0.76 12 $ 2.1 Thai baht 98.8 0.03 12 2.1 Malaysian ringgit 54.1 0.24 12 0.4 Mexican peso 22.4 0.05 12 0.9 British pound 2.2 1.29 4 0.1 Chinese renminbi 48.8 0.14 12 (0.7 ) Euro 26.1 1.12 12 (0.5 ) Romanian leu 33.5 0.23 12 0.1 Singapore dollar 23.9 0.74 12 0.2 Other 18.5 — 4 (0.2 ) Total $ 523.9 $ 4.5 As at December 31, 2018 Currency Contract amount Weighted average Maximum Fair value Canadian dollar $ 210.2 $ 0.76 12 $ (10.3 ) Thai baht 81.1 0.03 12 (0.7 ) Malaysian ringgit 53.4 0.24 12 (0.8 ) Mexican peso 25.6 0.05 12 0.2 British pound 5.3 1.27 4 — Chinese renminbi 66.8 0.15 12 (1.6 ) Euro 35.8 1.17 12 0.3 Romanian leu 40.4 0.25 12 (0.9 ) Singapore dollar 22.1 0.74 12 (0.3 ) Other 3.5 — 1 (0.1 ) Total $ 544.2 $ (14.2 ) |
Weighted Average Number of Sh_2
Weighted Average Number of Shares Diluted (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Earnings per share [abstract] | |
Disclosure of Weighted Average Diluted Shares | 2017 2018 2019 Weighted average number of shares (basic) 143.1 139.4 131.0 Dilutive effect of outstanding awards under SBC plans 2.1 1.2 0.8 Weighted average number of shares (diluted) 145.2 140.6 131.8 |
Commitments, Contingencies an_2
Commitments, Contingencies and Guarantees (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Other Provisions, Contingent Liabilities And Contingent Assets [Abstract] | |
Disclosure of Detailed Information About Leases | The following table sets forth the adjustments to our operating lease commitments at December 31, 2018 used to derive the lease obligations recognized on our initial application of IFRS 16 at January 1, 2019 : Operating lease commitments at December 31, 2018 $ 107.4 Discounted using our incremental borrowing rate at January 1, 2019 (13.2 ) Recognition exemption for short-term and low-value leases (1.9 ) Extension options reasonably certain to be exercised 19.7 Lease obligations recognized at January 1, 2019 under IFRS 16 112.0 Lease obligations previously classified as finance leases under IAS 17 10.4 Total lease obligations at January 1, 2019 $ 122.4 Other lease related expenses that were recognized in the consolidated statement of operations for 2019 are as follows: Year ended December 31 2019 Interest expense on lease obligations $ 6.6 Variable lease payments not included in the measurement of lease obligations $ 0.7 Expenses relating to short-term leases or low-value leases $ 4.6 At December 31, 2019 , the contractual undiscounted cash flows for our lease obligations (comprised of lease obligations under IFRS 16 and lease obligations financed through third-parties) were as follows: Years ending December 31 Leases financed through third-parties Other leases Total 2020 $ 1.6 $ 32.5 $ 34.1 2021 1.6 25.8 27.4 2022 1.4 20.7 22.1 2023 0.9 16.2 17.1 2024 — 11.2 11.2 Thereafter — 23.0 23.0 $ 5.5 $ 129.4 $ 134.9 At December 31, 2019 , we have commitments under IT support agreements that require future minimum payments as follows: 2020 $ 24.4 2021 18.6 2022 14.9 2023 14.5 2024 12.6 Thereafter 49.8 Total future minimum payments $ 134.8 |
Segment and Geographic Inform_2
Segment and Geographic Information (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Operating Segments [Abstract] | |
Revenues by Reportable Segment | Information regarding each reportable segment for the periods indicated is set forth below: Revenue by segment: Year ended December 31 2017 2018 2019 % of total % of total % of total ATS $ 1,958.6 32 % $ 2,209.7 33 % $ 2,285.6 39 % CCS 4,184.1 68 % 4,423.5 67 % 3,602.7 61 % Total $ 6,142.7 $ 6,633.2 $ 5,888.3 |
Information by Reportable Segment | Segment income, segment margin, and reconciliation of segment income to IFRS earnings before income taxes: Year ended December 31 2017 2018 2019 Segment Margin Segment Margin Segment Margin ATS segment income and margin $ 96.8 4.9 % $ 102.5 4.6 % $ 64.2 2.8 % CCS segment income and margin 120.4 2.9 % 111.4 2.5 % 93.9 2.6 % Total segment income 217.2 213.9 158.1 Reconciling items: Finance costs 10.1 24.4 49.5 Employee SBC expense 30.1 33.4 34.1 Amortization of intangible assets (excluding computer software) 5.5 11.6 24.6 Other Charges (Recoveries) (note 16) 37.0 61.0 (49.9 ) Inventory fair value adjustment (note 3) — 1.6 — Other solar charges (inventory and A/R write-down) 1.4 — — IFRS earnings before income taxes $ 133.1 $ 81.9 $ 99.8 |
Disclosure of Geographical Areas | The following table details our external revenue allocated by manufacturing location among countries that generated 10% or more of total revenue for the years indicated: Year ended December 31 2017 2018 2019 Thailand 34 % 32 % 34 % China 21 % 20 % 18 % Malaysia 12 % 12 % 12 % The following table details our allocation of property, plant and equipment and, commencing in 2019, ROU assets among countries that represented 10% or more of total property, plant and equipment and ROU assets for the years indicated: December 31 2018 2019 China 19 % 14 % Thailand 16 % 16 % Malaysia 13 % * Romania 15 % 11 % United States 15 % 16 % Canada * * * Less than 10%. The following table details our allocation of intangible assets and goodwill* among countries that represented 10% or more of total intangible assets and goodwill for the years indicated: December 31 2018 2019 United States 96 % 86 % South Korea * 10 % * For purposes of this table, intangible assets and goodwill acquired as part of our Impakt acquisition were originally allocated in full to the United States in 2018. In 2019, however, upon finalizing the purchase price allocation, we allocated Impakt's intangible assets and goodwill between the United States and South Korea. |
Disclosure of major customers | The following table sets forth the customers that individually represented 10% or more of total revenue for the years indicated, and their segments: Segment Year ended December 31 2017 2018 2019 Cisco Systems, Inc. CCS 18 % 14 % 12 % Dell Technologies CCS * 10 % * Juniper Networks, Inc. CCS 13 % * * Total 31 % 24 % 12 % * Less than 10%. |
Basis of Preparation and Sign_4
Basis of Preparation and Significant Accounting Policies - Recently Adopted Accounting Standards (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Jan. 01, 2019 | Dec. 31, 2018 |
Disclosure of initial application of standards or interpretations [line items] | |||
Land rights | $ 104.1 | $ 111.5 | |
Lease liabilities | 122.4 | ||
Current accrued expenses and other current liabilities | (370.9) | $ (320.4) | |
Finance lease obligation | $ 107.4 | ||
Discounted using our incremental borrowing rate at January 1, 2019 | (13.2) | ||
Recognition exemption for short-term and low-value leases | (1.9) | ||
Extension options reasonably certain to be exercised | 19.7 | ||
Lease obligations recognized at January 1, 2019 under IFRS 16 | 112 | ||
Lease obligations previously classified as finance leases under IAS 17 | 10.4 | ||
IFRS 16 | |||
Disclosure of initial application of standards or interpretations [line items] | |||
Land rights | 111.5 | ||
Lease liabilities | $ 111.2 | 112 | |
Current accrued expenses and other current liabilities | $ 0.5 | ||
Weighted average incremental borrowing rate used to determine lease obligation (percentage) | 4.70% |
Basis of Preparation and Sign_5
Basis of Preparation and Significant Accounting Policies - Narrative (Details) | 12 Months Ended | 24 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2017 | Dec. 31, 2018 | |
Options | |||
Disclosure of detailed information about intangible assets [line items] | |||
Vesting period | 4 years | ||
RSUs | |||
Disclosure of detailed information about intangible assets [line items] | |||
Vesting period | 3 years | ||
Conversion rate (in shares) | 1 | ||
PSUs | |||
Disclosure of detailed information about intangible assets [line items] | |||
Vesting period | 3 years | ||
Percentage of awards granted recorded based on market value of subordinate voting shares (percent) | 40.00% | ||
Award requisite service period | 3 years | ||
Percentage of awards granted recorded using Monte Carlo simulation model (percent) | 60.00% | ||
DSUs | |||
Disclosure of detailed information about intangible assets [line items] | |||
Conversion rate (in shares) | 1 | ||
25% vested in year 1 | Options | |||
Disclosure of detailed information about intangible assets [line items] | |||
Vesting (as a) percentage | 25.00% | ||
25% vested in year 1 | RSUs | |||
Disclosure of detailed information about intangible assets [line items] | |||
Vesting (as a) percentage | 33.33% | ||
25% vested in year 2 | Options | |||
Disclosure of detailed information about intangible assets [line items] | |||
Vesting (as a) percentage | 25.00% | ||
25% vested in year 2 | RSUs | |||
Disclosure of detailed information about intangible assets [line items] | |||
Vesting (as a) percentage | 33.33% | ||
25% vested in year 3 | Options | |||
Disclosure of detailed information about intangible assets [line items] | |||
Vesting (as a) percentage | 25.00% | ||
25% vested in year 3 | RSUs | |||
Disclosure of detailed information about intangible assets [line items] | |||
Vesting (as a) percentage | 33.33% | ||
25% vested in year 4 | Options | |||
Disclosure of detailed information about intangible assets [line items] | |||
Vesting (as a) percentage | 25.00% | ||
Bottom of range | PSUs | |||
Disclosure of detailed information about intangible assets [line items] | |||
Vesting (as a) percentage | 0.00% | ||
Bottom of range | DSUs | |||
Disclosure of detailed information about intangible assets [line items] | |||
Percentage of annual fees paid to Board of Directors paid in form of awards (percent) | 100.00% | 75.00% | |
Percentage of annual fees paid to board of directors in cash (percent) | 0 | ||
Middle Of Range | DSUs | |||
Disclosure of detailed information about intangible assets [line items] | |||
Percentage of annual fees paid to board of directors in cash (percent) | 0.25 | ||
Top of range | PSUs | |||
Disclosure of detailed information about intangible assets [line items] | |||
Vesting (as a) percentage | 200.00% | ||
Top of range | DSUs | |||
Disclosure of detailed information about intangible assets [line items] | |||
Percentage of annual fees paid to Board of Directors paid in form of awards (percent) | 100.00% | ||
Percentage of annual fees paid to board of directors in cash (percent) | 0.5 | ||
Intellectual property | Bottom of range | |||
Disclosure of detailed information about intangible assets [line items] | |||
Useful life of intangible assets | 3 years | ||
Intellectual property | Top of range | |||
Disclosure of detailed information about intangible assets [line items] | |||
Useful life of intangible assets | 5 years | ||
Other intangible assets | Bottom of range | |||
Disclosure of detailed information about intangible assets [line items] | |||
Useful life of intangible assets | 4 years | ||
Other intangible assets | Top of range | |||
Disclosure of detailed information about intangible assets [line items] | |||
Useful life of intangible assets | 15 years | ||
Computer software assets | Bottom of range | |||
Disclosure of detailed information about intangible assets [line items] | |||
Useful life of intangible assets | 1 year | ||
Computer software assets | Top of range | |||
Disclosure of detailed information about intangible assets [line items] | |||
Useful life of intangible assets | 10 years | ||
Buildings | |||
Disclosure of detailed information about intangible assets [line items] | |||
Useful life of property, plant and equipment | 40 years | ||
Building/leasehold improvements | Top of range | |||
Disclosure of detailed information about intangible assets [line items] | |||
Useful life of property, plant and equipment | 40 years | ||
Machinery and equipment | Bottom of range | |||
Disclosure of detailed information about intangible assets [line items] | |||
Useful life of property, plant and equipment | 3 years | ||
Machinery and equipment | Top of range | |||
Disclosure of detailed information about intangible assets [line items] | |||
Useful life of property, plant and equipment | 15 years |
Acquisitions - Additional Infor
Acquisitions - Additional Information (Details) - USD ($) | 12 Months Ended | ||||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2019 | Mar. 31, 2019 | Nov. 30, 2018 | Apr. 30, 2018 | |
Disclosure of detailed information about business combination [line items] | |||||||
Acquisition-related costs recognised as expense for transaction recognised separately from acquisition of assets and assumption of liabilities in business combination | $ 0 | $ 0 | |||||
Integration and acquisition-related transaction costs | $ 3,900,000 | $ 11,000,000 | $ 4,500,000 | ||||
Atrenne | |||||||
Disclosure of detailed information about business combination [line items] | |||||||
Consideration transferred, acquisition-date fair value | $ 140,300,000 | ||||||
Working capital adjustment | $ 1,400,000 | ||||||
Amortization expense annual increase | 6,000,000 | ||||||
Impakt | |||||||
Disclosure of detailed information about business combination [line items] | |||||||
Consideration transferred, acquisition-date fair value | $ 324,100,000 | ||||||
Working capital adjustment | $ 1,300,000 | ||||||
Amortization expense annual increase | 15,000,000 | ||||||
Acquisition-related costs recognised as expense for transaction recognised separately from acquisition of assets and assumption of liabilities in business combination | $ 2,200,000 |
Acquisitions - Purchase Price A
Acquisitions - Purchase Price Allocation (Details) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | |||
Apr. 30, 2018 | Jun. 30, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Nov. 30, 2018 | |
Disclosure of detailed information about business combination [line items] | |||||
Goodwill | $ 198.3 | $ 198.4 | |||
Atrenne | |||||
Disclosure of detailed information about business combination [line items] | |||||
Current assets, net of cash acquired | $ 31.5 | ||||
Cash acquired | 1.1 | ||||
Property, plant and equipment and other long-term assets | 7.8 | ||||
Customer intangible assets and computer software assets | 51 | ||||
Goodwill | 62.6 | ||||
Current liabilities | (8.5) | ||||
Deferred income taxes and other-long-term liabilities | (4.1) | ||||
Identifiable net assets acquired | 140.3 | ||||
Inventory fair value adjustment | $ 1.6 | $ 1.6 | |||
Impakt | |||||
Disclosure of detailed information about business combination [line items] | |||||
Current assets, net of cash acquired | $ 49.2 | ||||
Cash acquired | 5.9 | ||||
Property, plant and equipment and other long-term assets | 20.6 | ||||
Customer intangible assets and computer software assets | 219.3 | ||||
Goodwill | $ 112.5 | 112.6 | |||
Current liabilities | (25.8) | ||||
Deferred income taxes and other-long-term liabilities | (51.8) | ||||
Identifiable net assets acquired | $ 324.1 |
Accounts Receivable (Details)
Accounts Receivable (Details) | 1 Months Ended | 3 Months Ended | 11 Months Ended | 12 Months Ended | ||
Jan. 15, 2020USD ($) | Dec. 31, 2019USD ($)program | Nov. 30, 2019USD ($) | Mar. 01, 2021USD ($) | Dec. 31, 2019USD ($)bankprogram | Dec. 31, 2018USD ($) | |
Derecognition of Financial Assets by Type of Transfer [Line Items] | ||||||
A/R sales program, number of third-party banks | bank | 2 | |||||
Number of supplier financing programs | program | 2 | |||||
Contract assets | $ 226,700,000 | $ 226,700,000 | $ 267,800,000 | |||
Factoring of receivables from facility program | ||||||
Derecognition of Financial Assets by Type of Transfer [Line Items] | ||||||
Agreement to sell trade receivables, maximum capacity | $ 200,000,000 | $ 250,000,000 | ||||
Accounts receivable sold during period | 90,600,000 | 90,600,000 | 130,000,000 | |||
Factoring of receivables from supplier financing program | ||||||
Derecognition of Financial Assets by Type of Transfer [Line Items] | ||||||
Accounts receivable sold during period | $ 50,400,000 | $ 50,400,000 | $ 50,000,000 | |||
CCS Segment Customer | ||||||
Derecognition of Financial Assets by Type of Transfer [Line Items] | ||||||
Number of supplier financing programs | program | 1 | |||||
ATS Segment Customer | ||||||
Derecognition of Financial Assets by Type of Transfer [Line Items] | ||||||
Number of supplier financing programs | program | 1 | |||||
New Agreement To Sell Accounts Receivable | Factoring of receivables from facility program | ||||||
Derecognition of Financial Assets by Type of Transfer [Line Items] | ||||||
Agreement to sell trade receivables, maximum capacity | $ 200,000,000 | $ 235,000,000 | ||||
Agreement term | 1 year | |||||
Extension term | 1 year |
Inventories (Details)
Inventories (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Inventories [Abstract] | ||
Raw materials | $ 868.3 | $ 948.8 |
Work in progress | 77.1 | 101.5 |
Finished goods | 46.8 | 39.6 |
Current inventories | $ 992.2 | $ 1,089.9 |
Inventories - Additional Inform
Inventories - Additional Information (Details) $ in Millions | 3 Months Ended | 12 Months Ended | |||
Dec. 31, 2019USD ($)Segment | Dec. 31, 2018USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | |
Inventories [Abstract] | |||||
Inventory write-down | $ 4.1 | $ 13.5 | $ 3.3 | ||
Inventory write down, percentage related to specified aged inventory (percent) | 66.67% | 50.00% | |||
Reversal of inventory write-down | $ 5.8 | $ 4.6 | |||
Number of segments with inventory write-downs | Segment | 2 | ||||
Deposits from customers | $ 121.9 | $ 57.9 | $ 121.9 | $ 57.9 |
Assets Classified As Held For_2
Assets Classified As Held For Sale (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Non-current Assets Held For Sale And Discontinued Operations [Abstract] | ||
Assets classified as held for sale | $ 0.7 | $ 27.4 |
Amount of property, plant and equipment reclassification out of available for sale | $ 12.9 |
Property, Plant and Equipment_2
Property, Plant and Equipment (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property, plant and equipment | $ 355 | $ 365.3 | $ 323.9 |
Cost | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property, plant and equipment | 1,108.1 | 1,183.5 | |
Accumulated Depreciation and Impairment | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property, plant and equipment | (753.1) | (818.2) | |
Land | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property, plant and equipment | 23.6 | 14.8 | 11.1 |
Land | Cost | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property, plant and equipment | 35.6 | 26.8 | |
Land | Accumulated Depreciation and Impairment | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property, plant and equipment | (12) | (12) | |
Buildings including improvements | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property, plant and equipment | 154.6 | 157.5 | 141.6 |
Buildings including improvements | Cost | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property, plant and equipment | 351.7 | 375.5 | |
Buildings including improvements | Accumulated Depreciation and Impairment | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property, plant and equipment | (197.1) | (218) | |
Machinery and equipment | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property, plant and equipment | 176.8 | 193 | $ 171.2 |
Machinery and equipment | Cost | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property, plant and equipment | 720.8 | 781.2 | |
Machinery and equipment | Accumulated Depreciation and Impairment | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property, plant and equipment | $ (544) | $ (588.2) |
Property, Plant and Equipment -
Property, Plant and Equipment - Changes to the Net Book Value (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Reconciliation of changes in property, plant and equipment [abstract] | ||
Property, plant and equipment, beginning balance | $ 365.3 | $ 323.9 |
Transferred from assets held for sale | 12.9 | |
Additions | 76.8 | 87.7 |
Acquisitions through business combinations | (0.3) | 28.3 |
Depreciation | (73.3) | (73.7) |
Write down of assets and other disposals | (26.2) | (0.9) |
Foreign exchange and other | (0.2) | 0 |
Property, plant and equipment, ending balance | 355 | 365.3 |
Recognised finance lease as assets | 7.5 | 12.8 |
Land | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Property, plant and equipment, beginning balance | 14.8 | 11.1 |
Transferred from assets held for sale | 11.2 | |
Additions | 0 | 0 |
Acquisitions through business combinations | 0 | 3.6 |
Depreciation | 0 | 0 |
Write down of assets and other disposals | (2.5) | 0 |
Foreign exchange and other | 0.1 | 0.1 |
Property, plant and equipment, ending balance | 23.6 | 14.8 |
Buildings including improvements | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Property, plant and equipment, beginning balance | 157.5 | 141.6 |
Transferred from assets held for sale | 1.7 | |
Additions | 21.7 | 25.4 |
Acquisitions through business combinations | 0 | 10.8 |
Depreciation | (20.1) | (20.4) |
Write down of assets and other disposals | (6.1) | 0 |
Foreign exchange and other | (0.1) | 0.1 |
Property, plant and equipment, ending balance | 154.6 | 157.5 |
Machinery and equipment | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Property, plant and equipment, beginning balance | 193 | 171.2 |
Transferred from assets held for sale | 0 | |
Additions | 55.1 | 62.3 |
Acquisitions through business combinations | (0.3) | 13.9 |
Depreciation | (53.2) | (53.3) |
Write down of assets and other disposals | (17.6) | (0.9) |
Foreign exchange and other | (0.2) | (0.2) |
Property, plant and equipment, ending balance | $ 176.8 | $ 193 |
Property, Plant and Equipment_3
Property, Plant and Equipment - Additional Information (Details) | Mar. 07, 2019USD ($) | Mar. 31, 2019USD ($) | Mar. 31, 2019 | Sep. 30, 2018 | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Jul. 23, 2015real_estate_partnership |
Disclosure of transactions between related parties [line items] | ||||||||
Number of real estate partnerships to purchase property | real_estate_partnership | 4 | |||||||
Proceeds from sales of property, plant and equipment, classified as investing activities | $ 113,000,000 | |||||||
Gain on disposals of property, plant and equipment | $ 102,000,000 | |||||||
Term of lease contract | 10 years | 3 years | ||||||
Toronto transition costs (recoveries) | $ (95,800,000) | $ 13,200,000 | $ 1,600,000 | |||||
Key management personnel of entity | ||||||||
Disclosure of transactions between related parties [line items] | ||||||||
Percentage of interests in the Property Purchaser held by a Privately-held company (percent) | 27.00% | |||||||
Percentage of interest held (percent) | 25.00% | |||||||
Option to obtain non-voting interest in Assignee | 5.00% | |||||||
Building improvements and equipment | ||||||||
Disclosure of transactions between related parties [line items] | ||||||||
Toronto transition costs (recoveries) | 0 | |||||||
Temporary Corporate Headquarters | ||||||||
Disclosure of transactions between related parties [line items] | ||||||||
Toronto transition costs (recoveries) | 0 | 0 | ||||||
Headquarters And Manufacturing Operations Relocation | ||||||||
Disclosure of transactions between related parties [line items] | ||||||||
Toronto transition costs (recoveries) | $ 3,800,000 | 13,200,000 | $ 1,600,000 | |||||
Headquarters And Manufacturing Operations Relocation | Building improvements and equipment | ||||||||
Disclosure of transactions between related parties [line items] | ||||||||
Toronto transition costs (recoveries) | 1,200,000 | $ 15,000,000 | ||||||
Headquarters And Manufacturing Operations Relocation | Temporary Corporate Headquarters | ||||||||
Disclosure of transactions between related parties [line items] | ||||||||
Toronto transition costs (recoveries) | $ 5,000,000 |
Right-Of-Use Assets (Details)
Right-Of-Use Assets (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Right Of Use Asset Roll Forward [Roll Forward] | |
Additions | $ 29.6 |
Depreciation | (32.5) |
Write down of assets and lease terminations | (4.7) |
Foreign exchange and other | 0.2 |
Land rights | 104.1 |
Right-of-use assets, derecognized | 3.7 |
Land | |
Right Of Use Asset Roll Forward [Roll Forward] | |
Additions | 0 |
Depreciation | (0.6) |
Write down of assets and lease terminations | 0 |
Foreign exchange and other | 0.3 |
Land rights | 7 |
Buildings | |
Right Of Use Asset Roll Forward [Roll Forward] | |
Additions | 27.5 |
Depreciation | (31.6) |
Write down of assets and lease terminations | (4.7) |
Foreign exchange and other | 0 |
Land rights | 94.7 |
Other | |
Right Of Use Asset Roll Forward [Roll Forward] | |
Additions | 2.1 |
Depreciation | (0.3) |
Write down of assets and lease terminations | 0 |
Foreign exchange and other | (0.1) |
Land rights | 2.4 |
Right-of-use assets | |
Right Of Use Asset Roll Forward [Roll Forward] | |
Right-of-use assets, derecognized | $ 1 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | ||
Goodwill | $ 198.3 | $ 198.4 |
Intangible assets | 251.3 | 283.6 |
Intellectual property | ||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | ||
Intangible assets | 0 | 0 |
Other intangible assets | ||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | ||
Intangible assets | 242.3 | 269.8 |
Computer software assets | ||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | ||
Intangible assets | 9 | 13.8 |
Cost | ||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | ||
Goodwill | 253.7 | 253.8 |
Intangible assets | 905.6 | 909.4 |
Cost | Intellectual property | ||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | ||
Intangible assets | 111.3 | 111.3 |
Cost | Other intangible assets | ||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | ||
Intangible assets | 503.2 | 508 |
Cost | Computer software assets | ||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | ||
Intangible assets | 291.1 | 290.1 |
Accumulated Amortization and Impairment | ||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | ||
Goodwill | (55.4) | (55.4) |
Intangible assets | (654.3) | (625.8) |
Accumulated Amortization and Impairment | Intellectual property | ||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | ||
Intangible assets | (111.3) | (111.3) |
Accumulated Amortization and Impairment | Other intangible assets | ||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | ||
Intangible assets | (260.9) | (238.2) |
Accumulated Amortization and Impairment | Computer software assets | ||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | ||
Intangible assets | $ (282.1) | $ (276.3) |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets - Changes To The Net Book Value Of Goodwill And Intangible Assets (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Changes in intangible assets and goodwill [abstract] | |||
Intangible assets and goodwill, beginning balance | $ 482,000,000 | $ 44,800,000 | |
Additions | 1,800,000 | 3,300,000 | |
Acquisitions through business combinations | (3,700,000) | 449,200,000 | |
Amortization | (29,600,000) | (15,400,000) | $ (8,900,000) |
Impairment loss recognised in profit or loss, intangible assets and goodwill | 0 | 0 | 0 |
Write down of assets | (800,000) | ||
Foreign exchange and other | (100,000) | 100,000 | |
Intangible assets and goodwill, ending balance | 449,600,000 | 482,000,000 | 44,800,000 |
Goodwill | |||
Changes in intangible assets and goodwill [abstract] | |||
Intangible assets and goodwill, beginning balance | 198,400,000 | 23,200,000 | |
Acquisitions through business combinations | 0 | 175,200,000 | |
Impairment loss recognised in profit or loss, intangible assets and goodwill | 0 | ||
Foreign exchange and other | (100,000) | 0 | |
Intangible assets and goodwill, ending balance | 198,300,000 | 198,400,000 | 23,200,000 |
Other intangible assets | |||
Changes in intangible assets and goodwill [abstract] | |||
Intangible assets and goodwill, beginning balance | 269,800,000 | 10,400,000 | |
Additions | 0 | 0 | |
Acquisitions through business combinations | (3,000,000) | 271,000,000 | |
Amortization | (24,600,000) | (11,600,000) | |
Write down of assets | 0 | ||
Foreign exchange and other | 100,000 | 0 | |
Intangible assets and goodwill, ending balance | 242,300,000 | 269,800,000 | 10,400,000 |
Computer software assets | |||
Changes in intangible assets and goodwill [abstract] | |||
Intangible assets and goodwill, beginning balance | 13,800,000 | 11,200,000 | |
Additions | 1,800,000 | 3,300,000 | |
Acquisitions through business combinations | (700,000) | 3,000,000 | |
Amortization | (5,000,000) | (3,800,000) | |
Write down of assets | (800,000) | ||
Foreign exchange and other | (100,000) | 100,000 | |
Intangible assets and goodwill, ending balance | $ 9,000,000 | $ 13,800,000 | $ 11,200,000 |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets - Additional Information (Details) - USD ($) | 12 Months Ended | ||||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Nov. 30, 2018 | Oct. 31, 2018 | Apr. 30, 2018 | Nov. 30, 2016 | |
Disclosure of reconciliation of changes in goodwill [line items] | |||||||
Impairment charges against goodwill or intangible assets | $ 0 | $ 0 | $ 0 | ||||
Term used to extrapolate cash flow projections | 5 years | ||||||
Growth rate used to extrapolate cash flow projections (percentage) | 2.00% | ||||||
Intangible assets and goodwill | $ 449,600,000 | 482,000,000 | 44,800,000 | ||||
Goodwill | 198,300,000 | 198,400,000 | |||||
Goodwill | |||||||
Disclosure of reconciliation of changes in goodwill [line items] | |||||||
Impairment charges against goodwill or intangible assets | 0 | ||||||
Intangible assets and goodwill | 198,300,000 | $ 198,400,000 | $ 23,200,000 | ||||
Impakt | |||||||
Disclosure of reconciliation of changes in goodwill [line items] | |||||||
Goodwill | $ 112,500,000 | $ 112,600,000 | |||||
Acquisitions prior to Impakt acquisition | |||||||
Disclosure of reconciliation of changes in goodwill [line items] | |||||||
Goodwill | $ 19,500,000 | ||||||
Karel | |||||||
Disclosure of reconciliation of changes in goodwill [line items] | |||||||
Goodwill | $ 3,700,000 | ||||||
Atrenne | |||||||
Disclosure of reconciliation of changes in goodwill [line items] | |||||||
Goodwill | $ 62,600,000 |
Goodwill and Intangible Asset_5
Goodwill and Intangible Assets - Assumptions for Our Annual Impairment Assessments of Goodwill (Details) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of information for cash-generating units [line items] | |||
Annual revenue growth rate (percentage) | 2.00% | ||
Term used to extrapolate cash flow projections | 5 years | ||
Capital equipment CGU | |||
Disclosure of information for cash-generating units [line items] | |||
Annual revenue growth rate (percentage) | 13.00% | 4.00% | 9.00% |
Term used to extrapolate cash flow projections | 5 years | 5 years | 6 years |
Discount rate (percentage) | 13.00% | 13.00% | 17.00% |
A & D CGU | |||
Disclosure of information for cash-generating units [line items] | |||
Term used to extrapolate cash flow projections | 5 years | 5 years | 4 years |
Discount rate (percentage) | 10.00% | 11.00% | 9.00% |
Atrenne CGU | |||
Disclosure of information for cash-generating units [line items] | |||
Annual revenue growth rate (percentage) | 4.00% | 12.00% | |
Term used to extrapolate cash flow projections | 5 years | 4 years | |
Discount rate (percentage) | 10.00% | 13.00% |
Other Non-Current Assets (Detai
Other Non-Current Assets (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Subclassifications of assets, liabilities and equities [abstract] | ||
Net pension assets | $ 5.1 | $ 4.5 |
Land rights | 9.7 | 10.1 |
Deferred investment costs | 1.9 | 2.9 |
Deferred financing costs | 2.2 | 2.1 |
Other | 7.5 | 10.6 |
Other non-current assets | $ 26.4 | $ 30.2 |
Provisions (Details)
Provisions (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Reconciliation of changes in other provisions [abstract] | ||
Beginning balance | $ 37.6 | |
Provisions | 40.7 | |
Reversal of prior year provisions | (4.1) | |
Payments/usage | (31.9) | |
Accretion, foreign exchange and other | (0.4) | |
Ending balance | 41.9 | |
Current | 26.1 | $ 23.2 |
Non-current | 15.8 | |
Total provisions | 41.9 | |
Restructuring | ||
Reconciliation of changes in other provisions [abstract] | ||
Beginning balance | 10.3 | |
Provisions | 28.9 | |
Reversal of prior year provisions | (0.8) | |
Payments/usage | (26.5) | |
Accretion, foreign exchange and other | (0.7) | |
Ending balance | 11.2 | |
Current | 11.2 | |
Non-current | 0 | |
Total provisions | 11.2 | |
Warranty | ||
Reconciliation of changes in other provisions [abstract] | ||
Beginning balance | 18.7 | |
Provisions | 11.2 | |
Reversal of prior year provisions | (3) | |
Payments/usage | (5) | |
Accretion, foreign exchange and other | 0.2 | |
Ending balance | 22.1 | |
Current | 13.5 | |
Non-current | 8.6 | |
Total provisions | 22.1 | |
Legal | ||
Reconciliation of changes in other provisions [abstract] | ||
Beginning balance | 1.1 | |
Provisions | 0 | |
Reversal of prior year provisions | 0 | |
Payments/usage | 0 | |
Accretion, foreign exchange and other | (0.1) | |
Ending balance | 1 | |
Current | 1 | |
Non-current | 0 | |
Total provisions | 1 | |
Other | ||
Reconciliation of changes in other provisions [abstract] | ||
Beginning balance | 7.5 | |
Provisions | 0.6 | |
Reversal of prior year provisions | (0.3) | |
Payments/usage | (0.4) | |
Accretion, foreign exchange and other | 0.2 | |
Ending balance | 7.6 | |
Current | 0.4 | |
Non-current | 7.2 | |
Total provisions | $ 7.6 |
Credit Facilities and Lease O_3
Credit Facilities and Lease Obligations - Additional Information (Details) - USD ($) | 1 Months Ended | 3 Months Ended | 5 Months Ended | 6 Months Ended | 12 Months Ended | ||||||||
May 31, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Dec. 31, 2018 | Sep. 30, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Nov. 30, 2018 | May 31, 2018 | |
Disclosure of detailed information about borrowings [line items] | |||||||||||||
Borrowings, notional amount | $ 544,200,000 | $ 544,200,000 | $ 523,900,000 | $ 544,200,000 | |||||||||
Letters of credit outstanding | 14,400,000 | 14,400,000 | 13,300,000 | 14,400,000 | |||||||||
Stock repurchase program, excess share repurchase amount | $ 17,000,000 | ||||||||||||
Uncommitted bank overdraft facilities | 132,800,000 | 132,800,000 | 142,500,000 | 132,800,000 | |||||||||
Amounts outstanding under overdraft facilities | 0 | $ 0 | 0 | 0 | |||||||||
Interest rate risk | |||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||
Hedging instrument, term | 5 years | ||||||||||||
New credit facility | |||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||
Borrowings, notional amount | $ 800,000,000 | ||||||||||||
Amount of accordion feature | 110,000,000 | ||||||||||||
Proceeds from borrowings | 48,000,000 | 759,000,000 | $ 0 | ||||||||||
Repayments of borrowings | $ 213,000,000 | 1,700,000 | 0 | ||||||||||
New credit facility | Bottom of range | |||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||
Repayments of borrowings, percentage of excess cash flow (percent) | 0.00% | ||||||||||||
New credit facility | Top of range | |||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||
Repayments of borrowings, percentage of excess cash flow (percent) | 50.00% | ||||||||||||
Term Loans | |||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||
Repayments of borrowings | $ 1,500,000 | ||||||||||||
Repayments of current borrowings | 6,000,000 | ||||||||||||
Initial Term Loan | |||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||
Borrowings, notional amount | $ 350,000,000 | ||||||||||||
Repayments of borrowings | 875,000 | ||||||||||||
Repayments of current borrowings | 1,700,000 | ||||||||||||
Initial Term Loan | London Interbank Offered Rate LIBOR | |||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||
Margin for borrowings (percent) | 2.125% | ||||||||||||
Initial Term Loan | Interest rate risk | |||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||
Hedged item, liabilities | 175,000,000 | $ 175,000,000 | 175,000,000 | ||||||||||
Incremental Term Loan | |||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||
Amount of accordion feature | $ 250,000,000 | ||||||||||||
Repayments of borrowings | 625,000 | ||||||||||||
Incremental Term Loan | London Interbank Offered Rate LIBOR | |||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||
Margin for borrowings (percent) | 2.50% | ||||||||||||
Incremental Term Loan | Interest rate risk | |||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||
Hedged item, liabilities | 350,000,000 | 350,000,000 | 350,000,000 | ||||||||||
Revolver | |||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||
Line of credit, maximum borrowing capacity | $ 450,000,000 | ||||||||||||
Amount of accordion feature | 110,000,000 | ||||||||||||
Proceeds from borrowings | $ 48,000,000 | 339,500,000 | $ 55,000,000 | ||||||||||
Repayments of borrowings | $ 110,000,000 | 245,000,000 | $ 97,000,000 | ||||||||||
Letters of credit outstanding | $ 21,300,000 | $ 150,000,000 | $ 21,300,000 | 21,200,000 | 21,300,000 | ||||||||
Uncommitted bank overdraft facilities | $ 428,800,000 | ||||||||||||
Revolver | Bottom of range | |||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||
Margin for borrowings (percent) | 0.75% | ||||||||||||
Commitment fees (percent) | 0.35% | ||||||||||||
Revolver | Top of range | |||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||
Margin for borrowings (percent) | 2.50% | ||||||||||||
Commitment fees (percent) | 0.50% | ||||||||||||
Revolver | Bridge Loan | |||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||
Line of credit, maximum borrowing capacity | $ 50,000,000 | ||||||||||||
Revolver | Bridge Loan | Top of range | |||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||
Debt instrument term | 10 days | ||||||||||||
Prior credit facility | |||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||
Proceeds from borrowings | $ 0 | 163,000,000 | 0 | ||||||||||
Repayments of borrowings | $ 0 | 350,500,000 | $ 40,000,000 | ||||||||||
Prior Revolving Facility | |||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||
Line of credit, maximum borrowing capacity | $ 300,000,000 | ||||||||||||
Proceeds from borrowings | 163,000,000 | ||||||||||||
Repayments of borrowings | 163,000,000 | ||||||||||||
Prior Term Loan | |||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||
Borrowings, notional amount | $ 250,000,000 | ||||||||||||
Repayments of borrowings | $ 175,000,000 | ||||||||||||
Repayments of current borrowings | $ 12,500,000 | ||||||||||||
Forecast | Incremental Term Loan | |||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||
Repayments of borrowings | $ 107,000,000 |
Credit Facilities and Lease O_4
Credit Facilities and Lease Obligations - Borrowings Under Credit Facilities and Lease Obligations (Details) - USD ($) | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||||
Jun. 30, 2018 | Jun. 30, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Jan. 01, 2019 | Dec. 31, 2015 | Dec. 31, 2014 | |
Disclosure of detailed information about borrowings [line items] | ||||||||
Borrowings | $ 0 | $ 159,000,000 | ||||||
Lease obligations, comprised of lease obligations under IFRS 16 and lease obligations financed through third parties | $ 10,400,000 | |||||||
Lease obligations, comprised of lease obligations under IFRS 16 and lease obligations financed through third parties | $ 112,000,000 | |||||||
Borrowings and lease liabilities | 698,700,000 | 757,900,000 | ||||||
Current portion of borrowings under Credit Facility and lease obligations | 139,600,000 | 107,700,000 | ||||||
Long-term portion of borrowings under Credit Facility and lease obligations | 559,100,000 | 650,200,000 | ||||||
Accelerated amortization of unamortized deferred financing costs | 2,000,000 | 1,200,000 | $ 0 | |||||
Current lease liabilities | 28,400,000 | 3,200,000 | ||||||
Non-current lease liabilities | 87,700,000 | 7,200,000 | ||||||
Prior Revolving Facility | ||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||
Accelerated amortization of unamortized deferred financing costs | $ 600,000 | |||||||
Prior Revolving Facility | Debt issuance costs, gross | ||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||
Borrowings | $ 1,700,000 | |||||||
Prior Term Loan | ||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||
Accelerated amortization of unamortized deferred financing costs | $ 600,000 | |||||||
Prior Term Loan | Debt issuance costs, gross | ||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||
Borrowings | $ 2,100,000 | |||||||
Credit Facility | ||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||
Borrowings | 592,300,000 | 757,300,000 | ||||||
Accelerated amortization of unamortized deferred financing costs | $ 1,200,000 | |||||||
Revolver | ||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||
Borrowings | 0 | 159,000,000 | ||||||
Revolver | Debt issuance costs, gross | ||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||
Borrowings | 1,100,000 | 3,100,000 | ||||||
Term Loans | ||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||
Borrowings | 592,300,000 | 598,300,000 | ||||||
Term Loans | Unamortized debt issuance costs | ||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||
Borrowings | (9,700,000) | (9,800,000) | ||||||
Term Loans | Debt issuance costs, gross | ||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||
Borrowings | 1,600,000 | 10,300,000 | ||||||
Lease Obligations | ||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||
Lease obligations, comprised of lease obligations under IFRS 16 and lease obligations financed through third parties | $ 10,400,000 | |||||||
Lease obligations, comprised of lease obligations under IFRS 16 and lease obligations financed through third parties | $ 116,100,000 |
Credit Facilities and Lease O_5
Credit Facilities and Lease Obligations - Mandatory Principal Repayments (Details) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 |
Disclosure of detailed information about borrowings [line items] | ||
Borrowings | $ 0 | $ 159,000,000 |
New Term Loans | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings | 592,300,000 | $ 598,300,000 |
2020 | New Term Loans | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings | 113,000,000 | |
2021 | New Term Loans | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings | 6,000,000 | |
2022 | New Term Loans | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings | 6,000,000 | |
2023 | New Term Loans | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings | 6,000,000 | |
2024 | New Term Loans | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings | 6,000,000 | |
2025 (to maturity in June 2025) | New Term Loans | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings | $ 455,300,000 |
Credit Facilities and Lease O_6
Credit Facilities and Lease Obligations - Schedule of Lease Obligations (Details) $ in Millions | Dec. 31, 2019USD ($) |
Disclosure of maturity analysis of operating lease payments [line items] | |
Leases financed through third-parties | $ 5.5 |
Other leases | 129.4 |
Total | 134.9 |
2020 | |
Disclosure of maturity analysis of operating lease payments [line items] | |
Leases financed through third-parties | 1.6 |
Other leases | 32.5 |
Total | 34.1 |
2021 | |
Disclosure of maturity analysis of operating lease payments [line items] | |
Leases financed through third-parties | 1.6 |
Other leases | 25.8 |
Total | 27.4 |
2022 | |
Disclosure of maturity analysis of operating lease payments [line items] | |
Leases financed through third-parties | 1.4 |
Other leases | 20.7 |
Total | 22.1 |
2023 | |
Disclosure of maturity analysis of operating lease payments [line items] | |
Leases financed through third-parties | 0.9 |
Other leases | 16.2 |
Total | 17.1 |
2024 | |
Disclosure of maturity analysis of operating lease payments [line items] | |
Leases financed through third-parties | 0 |
Other leases | 11.2 |
Total | 11.2 |
Thereafter | |
Disclosure of maturity analysis of operating lease payments [line items] | |
Leases financed through third-parties | 0 |
Other leases | 23 |
Total | $ 23 |
Credit Facilities and Lease O_7
Credit Facilities and Lease Obligations - Other Lease Related Expenses (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Financial Instruments [Abstract] | |
Interest expense on lease obligations | $ 6.6 |
Variable lease payments not included in the measurement of lease obligations | 0.7 |
Expenses relating to short-term leases or low-value leases | $ 4.6 |
Capital Stock - Additional Info
Capital Stock - Additional Information (Details) $ in Millions | 3 Months Ended | 12 Months Ended | |||||
Apr. 26, 2020 | Dec. 31, 2019sharesvote / shares | Dec. 31, 2018shares | Dec. 31, 2017USD ($)shares | Jan. 29, 2020shares | Nov. 30, 2018shares | Dec. 31, 2016shares | |
Disclosure of classes of share capital [line items] | |||||||
Number of share options granted in share-based payment arrangement (in shares) | 0 | 0 | |||||
Performance period | 3 years | ||||||
DSUs | |||||||
Disclosure of classes of share capital [line items] | |||||||
Conversion rate (in shares) | 1 | ||||||
Payments to settle DSUs as a result of a director's resignation | $ | $ 1.7 | ||||||
Number of other equity instruments exercised or vested in share-based payment arrangement (in shares) | 14,098 | ||||||
Options | |||||||
Disclosure of classes of share capital [line items] | |||||||
Expiration period | 10 years | ||||||
Vesting period | 4 years | ||||||
PSUs | |||||||
Disclosure of classes of share capital [line items] | |||||||
Vesting period | 3 years | ||||||
Percentage of shares vested dependent on performance achievements (percent) | 100.00% | ||||||
Premium used in estimating grant date fair value (percent) | 102.00% | 106.00% | 143.00% | ||||
Percentage of shares that will vest based on market performance condition and total shareholder return (percent) | 60.00% | ||||||
Award requisite service period | 3 years | ||||||
RSUs | |||||||
Disclosure of classes of share capital [line items] | |||||||
Conversion rate (in shares) | 1 | ||||||
Vesting period | 3 years | ||||||
Bottom of range | PSUs | |||||||
Disclosure of classes of share capital [line items] | |||||||
Percentage of shares vested dependent on performance achievements (percent) | 0.00% | ||||||
Top of range | PSUs | |||||||
Disclosure of classes of share capital [line items] | |||||||
Percentage of shares vested dependent on performance achievements (percent) | 200.00% | ||||||
Subordinate voting shares | |||||||
Disclosure of classes of share capital [line items] | |||||||
Subordinate voting shares, number of votes per share | vote / shares | 1 | ||||||
Conversion rate (in shares) | 1 | ||||||
Number of shares issued (in shares) | 110,200,000 | 117,700,000 | 123,200,000 | 121,900,000 | |||
Number of shares of SVS holder of vested PSU or RSU unit is entitled to (in shares) | 1 | ||||||
Subordinate voting shares | LTIP | |||||||
Disclosure of classes of share capital [line items] | |||||||
Number of shares authorized (in shares) | 29,000,000 | ||||||
Shares remaining in reserve for issuance (in shares) | 10,300,000 | ||||||
Subordinate voting shares | Two Thousand Eighteen NCIB | |||||||
Disclosure of classes of share capital [line items] | |||||||
Number of shares authorized to be repurchased (in shares) | 9,500,000 | ||||||
Subordinate voting shares | 2017 NCIB | |||||||
Disclosure of classes of share capital [line items] | |||||||
Number of shares authorized to be repurchased (in shares) | 10,500,000 | ||||||
Multiple voting shares | |||||||
Disclosure of classes of share capital [line items] | |||||||
Subordinate voting shares, number of votes per share | vote / shares | 25 | ||||||
Number of shares issued (in shares) | 18,600,000 | 18,600,000 | 18,600,000 | 18,900,000 | |||
Preferred shares | |||||||
Disclosure of classes of share capital [line items] | |||||||
Number of shares issued (in shares) | 0 | ||||||
Retirement of the chairman of the board of directors | Other related parties | Mr. William A. Etherington | DSUs | |||||||
Disclosure of classes of share capital [line items] | |||||||
Number of shares owned by Mr. Etherington (in shares) | 470,000 | ||||||
Award requisite service period | 90 days |
Capital Stock - Schedule of Cap
Capital Stock - Schedule of Capital Transactions (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Number Of Shares Outstanding [Roll Forward] | |||
Proceeds from exercise of options | $ 0 | $ 0.4 | $ 13.6 |
SVS | |||
Number Of Shares Outstanding [Roll Forward] | |||
Number of shares issued, beginning balance (in shares) | 117,700,000 | 123,200,000 | 121,900,000 |
Number of shares outstanding, beginning balance (in shares) | 117,700,000 | 123,200,000 | 121,900,000 |
Issued from treasury (in shares) | 800,000 | 1,300,000 | 2,800,000 |
Cancelled under NCIB (in shares) | (8,300,000) | (6,800,000) | (1,900,000) |
Other (in shares) | 0 | 0 | 346,175 |
Number of shares issued, ending balance (in shares) | 110,200,000 | 117,700,000 | 123,200,000 |
Number of shares outstanding, ending balance (in shares) | 1,102,000,000 | 117,700,000 | 123,200,000 |
MVS | |||
Number Of Shares Outstanding [Roll Forward] | |||
Number of shares issued, beginning balance (in shares) | 18,600,000 | 18,600,000 | 18,900,000 |
Number of shares outstanding, beginning balance (in shares) | 18,600,000 | 18,600,000 | 18,900,000 |
Issued from treasury (in shares) | 0 | 0 | 0 |
Cancelled under NCIB (in shares) | 0 | 0 | 0 |
Other (in shares) | (350,000) | ||
Number of shares issued, ending balance (in shares) | 18,600,000 | 18,600,000 | 18,600,000 |
Number of shares outstanding, ending balance (in shares) | 18,600,000 | 18,600,000 | 18,600,000 |
Options | SVS | |||
Number Of Shares Outstanding [Roll Forward] | |||
Shares issued (in shares) | 0 | 100,000 | 1,700,000 |
RSUs | SVS | |||
Number Of Shares Outstanding [Roll Forward] | |||
Shares issued (in shares) | 800,000 | 1,200,000 | 1,100,000 |
Value of shares issued upon vesting of RSUs | $ 10.4 | $ 14.3 | $ 9.8 |
Capital Stock - Schedule of Rep
Capital Stock - Schedule of Repurchase Activities under NCIB and SVS Held for Delivery under SBC Plans (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Aggregate cost of SVS repurchased for cancellation | $ 67.3 | $ 75.5 | $ 19.9 |
Aggregate cost of SVS repurchased for delivery under SBC plans | $ 9.2 | $ 22.4 | $ 16.7 |
Subordinate voting shares | |||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Number of SVS repurchased for cancellation (in millions) (in shares) | 8.3 | 6.8 | 1.9 |
Number of SVS held by trustee for delivery under SBC plans (in shares) | 1.7 | 1.9 | 0.8 |
Value of SVS held by trustee for delivery under SBC plans | $ 14.8 | $ 20.2 | $ 8.7 |
Subordinate voting shares | 2017 NCIB | |||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Aggregate cost of SVS repurchased for cancellation | $ 75.5 | $ 19.9 | |
Number of SVS repurchased for cancellation (in millions) (in shares) | 6.8 | 1.9 | |
Weighted average price per share for repurchases (in usd per share) | $ 11.10 | $ 10.58 | |
Aggregate cost of SVS repurchased for delivery under SBC plans | $ 22.4 | $ 16.7 | |
Number of SVS repurchased for delivery under SBC plans (in millions) (in shares) | 2.1 | 1.4 | |
Subordinate voting shares | 2018 NCIB | |||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Aggregate cost of SVS repurchased for cancellation | $ 67.3 | ||
Number of SVS repurchased for cancellation (in millions) (in shares) | 8.3 | ||
Weighted average price per share for repurchases (in usd per share) | $ 8.15 | ||
Aggregate cost of SVS repurchased for delivery under SBC plans | $ 9.2 | ||
Number of SVS repurchased for delivery under SBC plans (in millions) (in shares) | 1.2 |
Capital Stock - Schedule of Emp
Capital Stock - Schedule of Employee SBC Expense by Income Statement Location (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Employee SBC expense | $ 34.1 | $ 33.4 | $ 30.1 |
Cost of sales | |||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Employee SBC expense | 14.6 | 14.7 | 14.6 |
Selling, general and administrative expense | |||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Employee SBC expense | $ 19.5 | $ 18.7 | $ 15.5 |
Capital Stock - Schedule of Sto
Capital Stock - Schedule of Stock Option Transactions (Details) shares in Millions | 12 Months Ended | ||
Dec. 31, 2019shares$ / shares | Dec. 31, 2018shares$ / shares | Dec. 31, 2017shares$ / shares | |
Share-Based Compensation Arrangement By Share-Based Payment Award, Options, Outstanding [Roll Forward] | |||
Outstanding, beginning balance (in shares) | shares | 0.3 | 0.4 | 2.1 |
Exercised (in shares) | shares | 0 | (0.1) | (1.7) |
Outstanding, ending balance (in shares) | shares | 0.3 | 0.3 | 0.4 |
Share-Based Compensation Arrangement By Share-Based Payment Award, Options, Outstanding, Weighted-Average Exercise Price [Roll Forward] | |||
Weighted average exercise price, beginning balance (in dollars per share) | $ / shares | $ 11.93 | $ 12.14 | $ 8.46 |
Weighted average exercise price, exercised (in dollars per share) | $ / shares | 0 | 6.20 | 7.87 |
Weighted average exercise price, beginning balance (in dollars per share) | $ / shares | $ 12.50 | $ 11.93 | $ 12.14 |
Capital Stock - Schedule of S_2
Capital Stock - Schedule of Stock Options Outstanding (Details) shares in Millions | 12 Months Ended | |||
Dec. 31, 2019shares$ / shares | Dec. 31, 2018shares$ / shares | Dec. 31, 2017shares$ / shares | Dec. 31, 2016shares$ / shares | |
Disclosure of range of exercise prices of outstanding share options [line items] | ||||
Outstanding Options (in shares) | shares | 0.3 | 0.3 | 0.4 | 2.1 |
Weighted average exercise price of share options outstanding in share-based payment arrangement (in dollars per share) | $ 12.50 | $ 11.93 | $ 12.14 | $ 8.46 |
Weighted average remaining contractual life of outstanding share options | 5 years 2 months 12 days | |||
Exercisable Options (in shares) | shares | 0.3 | |||
Weighted average exercise price of share options exercisable in share-based payment arrangement (in usd per share) | $ 12.50 | |||
Bottom of range | ||||
Disclosure of range of exercise prices of outstanding share options [line items] | ||||
Exercise price of outstanding share options (in dollars per share) | 6.35 | |||
Top of range | ||||
Disclosure of range of exercise prices of outstanding share options [line items] | ||||
Exercise price of outstanding share options (in dollars per share) | $ 13.46 |
Capital Stock - Schedule of Inf
Capital Stock - Schedule of Information about RSUs and PSUs Granted and Outstanding (Details) shares in Millions | 12 Months Ended | ||
Dec. 31, 2019shares$ / shares | Dec. 31, 2018shares$ / shares | Dec. 31, 2017shares$ / shares | |
RSUs | |||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Number of shares granted (in shares) | 3 | 2.6 | 1.9 |
Weighted average exercise price of other equity instruments granted in share-based payment arrangement (in usd per share) | $ / shares | $ 7.88 | $ 10.48 | $ 13.05 |
Number of shares outstanding (in shares) | 4.6 | 3.8 | 3.2 |
PSUs | |||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Number of shares granted (in shares) | 2.1 | 1.6 | 0.9 |
Weighted average exercise price of other equity instruments granted in share-based payment arrangement (in usd per share) | $ / shares | $ 8.14 | $ 11.11 | $ 17.18 |
Number of shares outstanding (in shares) | 3.8 | 3.2 | 2.5 |
Capital Stock - Director SBC In
Capital Stock - Director SBC Included in the Income Statement (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019USD ($)shares | Dec. 31, 2018USD ($)shares | Dec. 31, 2017USD ($)shares | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
SBC expense included in above employee-related costs | $ | $ 34.1 | $ 33.4 | $ 30.1 |
RSUs | |||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Number of shares outstanding (in shares) | 4,600,000 | 3,800,000 | 3,200,000 |
Director | DSUs | |||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
SBC expense included in above employee-related costs | $ | $ 2.4 | $ 2 | $ 2.2 |
Number of shares outstanding (in shares) | 1,800,000 | 1,600,000 | 1,500,000 |
Director | RSUs | |||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Number of shares outstanding (in shares) | 20,000 | 0 | 0 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss, Net of Tax (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Accumulated Other Comprehensive Income Rollforward [Roll Forward] | ||||
Accumulated other comprehensive income, beginning balance | $ (26.5) | |||
Foreign currency translation adjustments | (0.2) | $ 0.1 | $ 0.7 | |
Actuarial gains (losses) on pension and non-pension post-employment benefit plans | (8.7) | 8.4 | (1.2) | |
Reclassification of actuarial losses (gains) to deficit | 8.7 | (8.4) | 1.2 | |
Loss on purchase of pension annuities | 0 | (63.3) | (17) | |
Reclassification of loss on purchase of pension annuities to deficit | 0 | 63.3 | 17 | |
Accumulated other comprehensive income, ending balance | (23.6) | (26.5) | ||
Income tax expense (recovery) relating to net loss on cash flow hedges | 0.2 | (1) | 2.8 | |
Release of income tax (expense) benefit relating to reclassification of net loss on cash flow hedges to operations | (0.5) | 0.7 | 0.3 | |
Income tax expense (recovery) relating to cash flow hedges | 0.2 | (0.5) | 1.2 | |
Foreign currency | ||||
Accumulated Other Comprehensive Income Rollforward [Roll Forward] | ||||
Accumulated other comprehensive income, beginning balance | (14.4) | (14.5) | (15.2) | |
Accumulated other comprehensive income, ending balance | (14.6) | (14.4) | (14.5) | |
Pension and non-pension post-employment benefit plans | ||||
Accumulated Other Comprehensive Income Rollforward [Roll Forward] | ||||
Accumulated other comprehensive income, beginning balance | 0 | 0 | ||
Accumulated other comprehensive income, ending balance | 0 | 0 | 0 | |
Accumulated other comprehensive loss | ||||
Accumulated Other Comprehensive Income Rollforward [Roll Forward] | ||||
Accumulated other comprehensive income, beginning balance | (26.5) | (6.7) | ||
Foreign currency translation adjustments | [1] | (0.2) | 0.1 | 0.7 |
Accumulated other comprehensive income, ending balance | (23.6) | (26.5) | (6.7) | |
Currency forward | ||||
Accumulated Other Comprehensive Income Rollforward [Roll Forward] | ||||
Net gain (loss) on cash flow hedges | 6.7 | (14.7) | 27.9 | |
Reclassification of net loss (gain) on cash flow hedges to operations | 4.1 | (0.8) | (10.6) | |
Currency forward | Cash flow hedges | ||||
Accumulated Other Comprehensive Income Rollforward [Roll Forward] | ||||
Accumulated other comprehensive income, beginning balance | (7.7) | 7.8 | (9.5) | |
Accumulated other comprehensive income, ending balance | 3.1 | (7.7) | 7.8 | |
Interest rate swap | ||||
Accumulated Other Comprehensive Income Rollforward [Roll Forward] | ||||
Net gain (loss) on cash flow hedges | (10.2) | (4.8) | 0 | |
Reclassification of net loss (gain) on cash flow hedges to operations | $ 2.5 | 0.4 | 0 | |
Term of derivative contract | 5 years | |||
Interest rate swap | Cash flow hedges | ||||
Accumulated Other Comprehensive Income Rollforward [Roll Forward] | ||||
Accumulated other comprehensive income, beginning balance | $ (4.4) | 0 | 0 | |
Accumulated other comprehensive income, ending balance | $ (12.1) | $ (4.4) | $ 0 | |
[1] | Accumulated other comprehensive loss is net of tax. See note 14. |
Expenses By Nature (Details)
Expenses By Nature (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Analysis of income and expense [abstract] | |||
Employee-related costs | $ 815.2 | $ 804.7 | $ 726.4 |
SBC expense included in above employee-related costs | 34.1 | 33.4 | 30.1 |
Freight and transportation costs | 90.3 | 97 | 79.3 |
Depreciation expense (including depreciation on ROU assets) | 105.8 | 73.7 | 67.6 |
Rental expense | 5.3 | $ 35.4 | $ 28.5 |
Depreciation expense | $ 32.5 |
Other Charges (Recoveries) - Sc
Other Charges (Recoveries) - Schedule of Charges (Recoveries) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Jun. 30, 2018 | Dec. 31, 2017 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Analysis of income and expense [abstract] | |||||
Restructuring charges | $ 37.9 | $ 35.4 | $ 28.9 | ||
Losses on pension and non-pension post-employment benefit plans | $ 63.3 | $ 1.9 | 4.1 | 0 | 1.9 |
Transition Costs (Recoveries) | (95.8) | 13.2 | 1.6 | ||
Credit Facility-related charges | 2 | 1.2 | 0 | ||
Acquisition Costs and other | 1.9 | 11.2 | 4.6 | ||
Other expense | $ (49.9) | $ 61 | $ 37 |
Other Charges (Recoveries) - Re
Other Charges (Recoveries) - Restructuring (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Analysis of income and expense [abstract] | |||
Cash charges | $ 28.1 | $ 35.2 | $ 25.1 |
Non-cash charges | 9.8 | 0.2 | 3.8 |
Expense of restructuring activities | $ 37.9 | $ 35.4 | $ 28.9 |
Other Charges (Recoveries) - Na
Other Charges (Recoveries) - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 9 Months Ended | 12 Months Ended | 27 Months Ended | |||||
Dec. 31, 2019 | Mar. 31, 2019 | Jun. 30, 2018 | Dec. 31, 2017 | Dec. 31, 2019 | Dec. 31, 2017 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2019 | |
Restructuring and Related Costs [Line Items] | ||||||||||
Expense of restructuring activities | $ 37.9 | $ 35.4 | $ 28.9 | |||||||
Cash charges | 28.1 | 35.2 | 25.1 | |||||||
Impairment | 9.8 | 0.2 | ||||||||
Impairment loss (reversal of impairment loss) recognised in profit or loss | 9.8 | 0.2 | 3.8 | |||||||
Restructuring provision | $ 11.2 | $ 11.2 | 11.2 | 10.3 | $ 11.2 | |||||
Losses on pension and non-pension post-employment benefit plans | $ 63.3 | $ 1.9 | 4.1 | 0 | 1.9 | |||||
Toronto transition costs (recoveries) | (95.8) | 13.2 | 1.6 | |||||||
Accelerated amortization of unamortized deferred financing costs | 2 | 1.2 | 0 | |||||||
Integration and acquisition-related transaction costs | 3.9 | $ 11 | 4.5 | |||||||
Gains on litigation settlements | $ 1.1 | |||||||||
Cost Efficiency Initiative | ||||||||||
Restructuring and Related Costs [Line Items] | ||||||||||
Expense of restructuring activities | $ 8 | $ 81.3 | ||||||||
Pension Plan Adjustment From Change In Law | ||||||||||
Restructuring and Related Costs [Line Items] | ||||||||||
Expense of restructuring activities | 4.1 | |||||||||
Gain on Sale of Toronto Property | ||||||||||
Restructuring and Related Costs [Line Items] | ||||||||||
Toronto transition costs (recoveries) | $ (102) | |||||||||
Internal Transition Costs | ||||||||||
Restructuring and Related Costs [Line Items] | ||||||||||
Toronto transition costs (recoveries) | $ 2.4 | |||||||||
Prior credit facility | ||||||||||
Restructuring and Related Costs [Line Items] | ||||||||||
Accelerated amortization of unamortized deferred financing costs | $ 1.2 | |||||||||
Fee and commission expense | $ 2 | 2 | ||||||||
Right-of-use assets | ||||||||||
Restructuring and Related Costs [Line Items] | ||||||||||
Write-downs of property, plant and equipment | $ 1 |
Finance Costs Narrative (Detail
Finance Costs Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of detailed information about borrowings [line items] | ||||
Finance costs and waiver fees paid | $ 44.5 | $ 36 | $ 10.2 | |
Prior credit facility | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Fee and commission expense | $ 2 | $ 2 |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Details) | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Disclosure of transactions between related parties [line items] | |
Term of agreement termination | 30 days |
Entities with significant influence | |
Disclosure of transactions between related parties [line items] | |
Renewal term of Service Agreement | 1 year |
Annual fee to be paid for Service Agreement | $ 235,000 |
Key management personnel of entity | |
Disclosure of transactions between related parties [line items] | |
Non-voting interest in the Assignee (percentage) | 5.00% |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Related Party [Abstract] | |||
Short-term employee benefits and costs | $ 4.4 | $ 6.2 | $ 7.5 |
Post-employment and other long-term benefits | 0.3 | 0.3 | 0.6 |
SBC (including DSUs and RSUs to eligible directors) | 15.6 | 14.8 | 12.4 |
Key management personnel compensation | $ 20.3 | $ 21.3 | $ 20.5 |
Pension and Non-pension Post-_3
Pension and Non-pension Post-employment Benefit Plans - Additional Information (Details) £ in Millions | 1 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||||||
Jun. 30, 2018USD ($) | Jun. 30, 2018GBP (£) | Apr. 30, 2017USD ($) | Apr. 30, 2017GBP (£) | Mar. 31, 2017USD ($) | Mar. 31, 2017GBP (£) | Jun. 30, 2018USD ($) | Mar. 31, 2017USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | |
Disclosure of fair value of plan assets [line items] | ||||||||||||
Percentage of plan members that are active employees of the Company | 1.00% | |||||||||||
Losses on pension and non-pension post-employment benefit plans | $ 63,300,000 | $ 1,900,000 | $ 4,100,000 | $ 0 | $ 1,900,000 | |||||||
Plan assets, at fair value | $ 328,500,000 | 293,000,000 | ||||||||||
Percentage of plan assets held with financial institutions with a rating of A- or above | 97.00% | |||||||||||
Employer contributions | $ 13,800,000 | 13,300,000 | 11,900,000 | |||||||||
Estimate of contributions expected to be paid to plan for next annual reporting period | 13,100,000 | |||||||||||
Level 1 | ||||||||||||
Disclosure of fair value of plan assets [line items] | ||||||||||||
Plan assets, at fair value | 28,700,000 | 26,500,000 | ||||||||||
Level 3 | ||||||||||||
Disclosure of fair value of plan assets [line items] | ||||||||||||
Plan assets, at fair value | 299,800,000 | 266,500,000 | ||||||||||
Level 2 | ||||||||||||
Disclosure of fair value of plan assets [line items] | ||||||||||||
Plan assets, at fair value | 0 | 0 | ||||||||||
UK Main Pension Plan | ||||||||||||
Disclosure of fair value of plan assets [line items] | ||||||||||||
Cost of annuity purchased | $ 209,200,000 | £ 156.1 | $ 154,300,000 | £ 123.7 | ||||||||
Non-cash loss recorded in other comprehensive income | $ 17,000,000 | |||||||||||
Reduction in pension assets | $ 17,000,000 | |||||||||||
UK Supplementary Pension Plan | ||||||||||||
Disclosure of fair value of plan assets [line items] | ||||||||||||
Cost of annuity purchased | $ 11,700,000 | £ 9.1 | ||||||||||
Pension Plans | ||||||||||||
Disclosure of fair value of plan assets [line items] | ||||||||||||
Plan assets, at fair value | 328,500,000 | 293,000,000 | ||||||||||
Defined Contribution Pension Plans | ||||||||||||
Disclosure of fair value of plan assets [line items] | ||||||||||||
Employer contributions | 10,100,000 | 9,600,000 | 9,400,000 | |||||||||
Estimate of contributions expected to be paid to plan for next annual reporting period | 10,100,000 | |||||||||||
Defined Benefit Pension Plans | ||||||||||||
Disclosure of fair value of plan assets [line items] | ||||||||||||
Employer contributions | 3,700,000 | 3,700,000 | 2,500,000 | |||||||||
Estimate of contributions expected to be paid to plan for next annual reporting period | 3,000,000 | |||||||||||
Other Benefit Plans | ||||||||||||
Disclosure of fair value of plan assets [line items] | ||||||||||||
Plan assets, at fair value | 1,800,000 | 0 | ||||||||||
Employer contributions | 9,100,000 | $ 4,800,000 | $ 4,500,000 | |||||||||
Estimate of contributions expected to be paid to plan for next annual reporting period | $ 4,400,000 |
Pension and Non-pension Post-_4
Pension and Non-pension Post-employment Benefit Plans - Market Value of Plan Assets (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Employee Benefits [Abstract] | ||
Debt investment funds | $ 10.3 | $ 10.2 |
Equity investment funds | 7.4 | 6.6 |
Insurance annuities | 299.8 | 266.5 |
Other | 11 | 9.7 |
Total | $ 328.5 | $ 293 |
Debt investment funds, allocation percentage | 3.00% | 4.00% |
Equity investment funds, allocation percentage | 2.00% | 2.00% |
Insurance annuities, allocation percentage | 91.00% | 91.00% |
Other, allocation percentage | 4.00% | 3.00% |
Total, allocation percentage | 100.00% | 100.00% |
Pension and Non-pension Post-_5
Pension and Non-pension Post-employment Benefit Plans - Summary of Plan Assets (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Jun. 30, 2018 | Mar. 31, 2017 | Dec. 31, 2017 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||||||
Losses on pension and non-pension post-employment benefit plans | $ 63.3 | $ 1.9 | $ 4.1 | $ 0 | $ 1.9 | |
Pension Plans | ||||||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||||||
Interest income | (0.6) | 0.8 | 1.3 | |||
Administrative expenses paid from plan assets | 1.5 | 1.3 | 1.3 | |||
Pension Plans | Plan assets | ||||||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||||||
Net defined benefit liability (asset) | 293 | 395.5 | ||||
Interest income | 8 | 9.4 | ||||
Actuarial losses in other comprehensive income | 27.8 | (82.2) | ||||
Administrative expenses paid from plan assets | (1.2) | (1.4) | ||||
Employer contributions | 2.9 | 2.7 | ||||
Employer direct benefit payments | 0.8 | 1 | ||||
Employer direct settlement payments | 0 | 0 | ||||
Settlement payments from employer | 0 | 0 | ||||
Settlement payments from plan | 0 | 0.1 | ||||
Benefit payments from plan | (12) | (12.7) | ||||
Benefit payments from employer | (0.8) | (1) | ||||
Foreign currency exchange rate changes and other | 10 | (18.4) | ||||
Net defined benefit liability (asset) | 395.5 | 328.5 | 293 | 395.5 | ||
Other Benefit Plans | ||||||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||||||
Interest income | (2.6) | (2.6) | (2.6) | |||
Administrative expenses paid from plan assets | 0 | 0 | 0 | |||
Other Benefit Plans | Plan assets | ||||||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||||||
Net defined benefit liability (asset) | 0 | 0 | ||||
Interest income | 0 | 0 | ||||
Actuarial losses in other comprehensive income | 0 | 0 | ||||
Administrative expenses paid from plan assets | 0 | 0 | ||||
Employer contributions | 0.9 | 0 | ||||
Employer direct benefit payments | 3 | 2.3 | ||||
Employer direct settlement payments | 5.2 | 2.5 | ||||
Settlement payments from employer | (5.2) | (2.5) | ||||
Settlement payments from plan | (0.2) | 0 | ||||
Benefit payments from plan | (0.2) | 0 | ||||
Benefit payments from employer | (3) | (2.3) | ||||
Foreign currency exchange rate changes and other | 1.3 | 0 | ||||
Net defined benefit liability (asset) | $ 0 | $ 1.8 | $ 0 | $ 0 | ||
UK Main Pension Plan | ||||||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||||||
Benefit payments from plan | $ 17 |
Pension and Non-pension Post-_6
Pension and Non-pension Post-employment Benefit Plans - Summary of Accrued Benefit Obligations (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Pension Plans | |||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||
Current service cost | $ 1.9 | $ 1.8 | $ 2.1 |
Past service cost and settlement/curtailment losses | 0 | (0.1) | (1.9) |
Interest cost | $ 0.6 | $ (0.8) | (1.3) |
Weighted average duration of defined benefit obligation | 18 years | 18 years | |
Other Benefit Plans | |||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||
Current service cost | $ 2.6 | $ 2.2 | 2 |
Past service cost and settlement/curtailment losses | (8) | (1.2) | (0.6) |
Interest cost | $ 2.6 | $ 2.6 | 2.6 |
Weighted average duration of defined benefit obligation | 13 years | 13 years | |
Accrued benefit obligations | Pension Plans | |||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||
Accrued benefit obligations, beginning of year | $ 309.6 | $ 355.8 | |
Current service cost | 1.9 | 1.8 | |
Past service cost and settlement/curtailment losses | 0 | 0.1 | |
Interest cost | 8.6 | 8.6 | |
Actuarial (losses) gains in other comprehensive income from changes in demographic assumptions | (0.4) | (3.7) | |
Actuarial (losses) gains in other comprehensive income from changes in financial assumptions | 31.1 | (19.9) | |
Actuarial (losses) gains in other comprehensive income from experience adjustments | (2.9) | 0.2 | |
Settlement payments from employer | 0 | 0 | |
Settlement payments from plan | 0 | 0.1 | |
Benefit payments from plan | (12) | (12.7) | |
Benefit payments from employer | (0.8) | (1) | |
Foreign currency exchange rate changes and other | 10.9 | (19.7) | |
Accrued benefit obligations, end of year | 346 | 309.6 | 355.8 |
Accrued benefit obligations | Other Benefit Plans | |||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||
Accrued benefit obligations, beginning of year | 68.1 | 75.5 | |
Current service cost | 2.6 | 2.2 | |
Past service cost and settlement/curtailment losses | 8 | 1.2 | |
Interest cost | 2.6 | 2.6 | |
Actuarial (losses) gains in other comprehensive income from changes in demographic assumptions | (1.7) | 0 | |
Actuarial (losses) gains in other comprehensive income from changes in financial assumptions | 11.4 | (3.5) | |
Actuarial (losses) gains in other comprehensive income from experience adjustments | (0.7) | (0.5) | |
Settlement payments from employer | (5.2) | (2.5) | |
Settlement payments from plan | (0.2) | 0 | |
Benefit payments from plan | (0.2) | 0 | |
Benefit payments from employer | (3) | (2.3) | |
Foreign currency exchange rate changes and other | 5.7 | (4.6) | |
Accrued benefit obligations, end of year | 87.4 | $ 68.1 | $ 75.5 |
Pension Plan Adjustment From Change In Law | Other Benefit Plans | |||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||
Past service cost and settlement/curtailment losses | $ 4.1 |
Pension and Non-pension Post-_7
Pension and Non-pension Post-employment Benefit Plans - Surplus (Deficit) in Defined Benefit Pension and Other Benefit Plans (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Disclosure of net defined benefit liability (asset) [line items] | ||
Plan assets, end of year | $ 328.5 | $ 293 |
Pension Plans | ||
Disclosure of net defined benefit liability (asset) [line items] | ||
Accrued benefit obligations, end of year | (346) | (309.6) |
Plan assets, end of year | 328.5 | 293 |
Excess (deficiency) of plan assets over accrued benefit obligations | (17.5) | (16.6) |
Other Benefit Plans | ||
Disclosure of net defined benefit liability (asset) [line items] | ||
Accrued benefit obligations, end of year | (87.4) | (68.1) |
Plan assets, end of year | 1.8 | 0 |
Excess (deficiency) of plan assets over accrued benefit obligations | $ (85.6) | $ (68.1) |
Pension and Non-pension Post-_8
Pension and Non-pension Post-employment Benefit Plans - Plan Balances Reported on Consolidated Balance Sheet (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Disclosure of defined benefit plans [line items] | ||
Pension and non-pension post-employment benefit obligations | $ (107.1) | $ (88.8) |
Current other post-employment benefit obligations | (1.1) | (0.4) |
Non-current net pension assets | 5.1 | 4.5 |
Excess (deficiency) of plan assets over accrued benefit obligations | (103.1) | (84.7) |
Pension Plans | ||
Disclosure of defined benefit plans [line items] | ||
Pension and non-pension post-employment benefit obligations | (22.6) | (21.1) |
Current other post-employment benefit obligations | 0 | 0 |
Non-current net pension assets | 5.1 | 4.5 |
Excess (deficiency) of plan assets over accrued benefit obligations | (17.5) | (16.6) |
Other Benefit Plans | ||
Disclosure of defined benefit plans [line items] | ||
Pension and non-pension post-employment benefit obligations | (84.5) | (67.7) |
Current other post-employment benefit obligations | (1.1) | (0.4) |
Non-current net pension assets | 0 | 0 |
Excess (deficiency) of plan assets over accrued benefit obligations | $ (85.6) | $ (68.1) |
Pension and Non-pension Post-_9
Pension and Non-pension Post-employment Benefit Plans - Expense Recognized in Consolidated Statement of Operations (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of defined benefit plans [line items] | |||
Total expense for the year | $ 815.2 | $ 804.7 | $ 726.4 |
Pension Plans | |||
Disclosure of defined benefit plans [line items] | |||
Current service cost | 1.9 | 1.8 | 2.1 |
Interest cost | 0.6 | (0.8) | (1.3) |
Past service cost and settlement/curtailment losses | 0 | 0.1 | 1.9 |
Plan administrative expenses and other | 1.5 | 1.3 | 1.3 |
Post-employment benefit expense, defined benefit plans | 4 | 2.4 | 4 |
Defined contribution pension plan expense | 10.1 | 9.6 | 9.4 |
Total expense for the year | 14.1 | 12 | 13.4 |
Other Benefit Plans | |||
Disclosure of defined benefit plans [line items] | |||
Current service cost | 2.6 | 2.2 | 2 |
Interest cost | 2.6 | 2.6 | 2.6 |
Past service cost and settlement/curtailment losses | 8 | 1.2 | 0.6 |
Plan administrative expenses and other | 0 | 0 | 0 |
Post-employment benefit expense, defined benefit plans | 13.2 | 6 | 5.2 |
Defined contribution pension plan expense | 0 | 0 | 0 |
Total expense for the year | $ 13.2 | $ 6 | $ 5.2 |
Pension and Non-pension Post_10
Pension and Non-pension Post-employment Benefit Plans - Actuarial Gains and Losses, Net of Tax, Recognized in OCI (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of analysis of other comprehensive income by item [line items] | |||
Loss on pension annuity purchases (note 19(a)) | $ 0 | $ 63.3 | $ 17 |
Actuarial losses recognized during the year | 8.7 | (8.4) | 1.2 |
Income tax recovery | 0.3 | 0.1 | 0 |
Income tax recovery | 1.1 | 0.8 | 0.7 |
Pension and non-pension post-employment benefit plans | |||
Disclosure of analysis of other comprehensive income by item [line items] | |||
Cumulative losses (gains), beginning of year | 69 | 14.1 | (4.1) |
Cumulative losses (gains), end of year | $ 77.7 | $ 69 | $ 14.1 |
Pension and Non-pension Post_11
Pension and Non-pension Post-employment Benefit Plans - Percentages and Assumptions Used in Measuring the Plans (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Pension Plans | |||
Weighted average discount rate at December 31 (i) for: | |||
Benefit obligations | 2.10% | 2.90% | 2.50% |
Net pension cost | 2.90% | 2.50% | 2.60% |
Weighted average rate of compensation increase for: | |||
Benefit obligations | 3.80% | 4.10% | 4.00% |
Net pension cost | 4.10% | 4.00% | 3.90% |
Pension Plans | Discount rate | |||
Healthcare cost trend rates: | |||
1% Increase | $ (54.5) | ||
1% Decrease | 70.6 | ||
Pension Plans | Healthcare cost trend rate | |||
Healthcare cost trend rates: | |||
1% Increase | 0 | ||
1% Decrease | $ 0 | ||
Other Benefit Plans | |||
Weighted average discount rate at December 31 (i) for: | |||
Benefit obligations | 2.90% | 3.80% | 3.60% |
Net pension cost | 3.80% | 3.60% | 3.90% |
Weighted average rate of compensation increase for: | |||
Benefit obligations | 4.60% | 4.20% | 4.60% |
Net pension cost | 4.20% | 4.60% | 4.60% |
Healthcare cost trend rates: | |||
Immediate trend | 5.30% | 5.70% | 5.80% |
Ultimate trend | 4.00% | 4.00% | 4.50% |
Other Benefit Plans | Discount rate | |||
Healthcare cost trend rates: | |||
1% Increase | $ (10.5) | ||
1% Decrease | 12.9 | ||
Other Benefit Plans | Healthcare cost trend rate | |||
Healthcare cost trend rates: | |||
1% Increase | 7.2 | ||
1% Decrease | $ (5.9) |
Pension and Non-pension Post_12
Pension and Non-pension Post-employment Benefit Plans - Schedule of Non-pension Post-employment benefit plans (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of defined benefit plans [line items] | |||
Plan contributions | $ 13.8 | $ 13.3 | $ 11.9 |
Estimated contribution | 13.1 | ||
Defined Benefit Pension Plans | |||
Disclosure of defined benefit plans [line items] | |||
Plan contributions | 3.7 | 3.7 | 2.5 |
Estimated contribution | 3 | ||
Other Benefit Plans | |||
Disclosure of defined benefit plans [line items] | |||
Plan contributions | 9.1 | 4.8 | 4.5 |
Estimated contribution | 4.4 | ||
Defined Contribution Pension Plans | |||
Disclosure of defined benefit plans [line items] | |||
Plan contributions | 10.1 | $ 9.6 | $ 9.4 |
Estimated contribution | $ 10.1 |
Income Taxes - Major Components
Income Taxes - Major Components Of Tax Expense (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Current income tax expense: | |||
Current year | $ 35.1 | $ 44.4 | $ 39.3 |
Adjustments for prior years, including changes to net provisions related to tax uncertainties | (12.3) | (4.7) | (0.2) |
Current tax expense | 22.8 | 39.7 | 39.1 |
Deferred income tax expense (recovery): | |||
Origination and reversal of temporary differences | 15.4 | 6.2 | (5.6) |
Changes in previously unrecognized tax losses and deductible temporary differences, including adjustments for prior years | (8.7) | (62.9) | (5.9) |
Deferred tax expense | 6.7 | (56.7) | (11.5) |
Income tax expense (recovery) | $ 29.5 | $ (17) | $ 27.6 |
Income Taxes - Reconciliation O
Income Taxes - Reconciliation Of Income Taxes (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Earnings before income taxes | $ 99.8 | $ 81.9 | $ 133.1 |
Income tax expense at Celestica’s statutory income tax rate of 26.5% (2018 and 2017 — 26.5%) | 26.4 | 21.7 | 35.3 |
Manufacturing and processing deduction | 0 | (0.1) | (0.1) |
Foreign income taxed at different rates | (6.7) | (9.1) | (7.6) |
Foreign exchange | 5 | 3.8 | (6.8) |
Other, including non-taxable/non-deductible items and changes to net provisions related to tax uncertainties | (5.8) | 11.3 | 3.4 |
Tax effect from change in tax rate | (0.8) | 0 | 0 |
Change in unrecognized tax losses and deductible temporary differences | 11.4 | (44.6) | 3.4 |
Income tax expense (recovery) | 29.5 | (17) | 27.6 |
Deferred tax expense related to taxable temporary differences, repatriation of undistributed foreign earnings | 6 | 4 | |
Current tax expense for withholding tax on dividends paid | 3.5 | ||
Deferred tax assets | $ 33.6 | 36.7 | $ 37.6 |
U.S. group of subsidiaries | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Deferred tax assets | $ 53.3 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) $ / shares in Units, $ in Millions | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||
Oct. 31, 2019tax_incentive | Jun. 30, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2019USD ($)tax_incentive$ / shares | Dec. 31, 2018USD ($)$ / shares | Dec. 31, 2017USD ($)$ / shares | |
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||||||
Income tax expense (recovery) | $ 29.5 | $ (17) | $ 27.6 | |||
Tax benefit from change in estimate related to prior year estimate | 6.4 | |||||
Reversal of previously-recorded tax liabilities and uncertainties | 4.5 | |||||
Deferred tax expense related to taxable temporary differences, repatriation of undistributed foreign earnings | 6 | 4 | ||||
Tax benefit arising from previously unrecognised tax loss, tax credit or temporary difference of prior period used to reduce deferred tax expense | 5.7 | |||||
Deferred tax liabilities as a result of acquisitions | (0.9) | 56.6 | ||||
Reversal of previously accrued Mexican taxes | $ 6 | |||||
Solar tax benefit | 4.3 | |||||
Income tax expense related to the Tax Cuts and Jobs Act of 2017 | $ 2 | 2 | ||||
Deductible temporary differences and unused tax losses for which no deferred tax assets have been recognized | 1,783.2 | 1,780.4 | ||||
Temporary differences associated with investments in subsidiaries for which no deferred tax liabilities have been recognized | 5 | 5.8 | ||||
Deferred tax assets recognized with respect to losses | (1.4) | 56 | ||||
Aggregate tax benefit from tax incentives | $ 1.5 | $ 4.7 | $ 7.6 | |||
Tax benefit from tax incentives, per share (in dollars per share) | $ / shares | $ 0.01 | $ 0.03 | $ 0.05 | |||
Number of tax incentives | tax_incentive | 1 | 3 | ||||
Initial percentage of tax exemption (percent) | 100.00% | |||||
Initial term of tax exemption | 8 years | |||||
Percentage of tax exemption (percent) | 50.00% | |||||
Term of tax exemption | 5 years | |||||
Atrenne | ||||||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||||||
Tax benefit related to previously unrecognized tax assets | $ 3.7 | |||||
Impakt | ||||||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||||||
Tax benefit related to previously unrecognized tax assets | 49.6 | |||||
U.S. group of subsidiaries | ||||||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||||||
Deferred tax assets recognized with respect to losses | $ 5 | |||||
Asian Subsidiary | ||||||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||||||
Deferred tax assets recognized with respect to losses | $ 6.8 |
Income Taxes - Changes In Defer
Income Taxes - Changes In Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Reconciliation of changes in deferred tax liability (asset) [abstract] | ||
Deferred tax assets, beginning balance | $ 36.7 | $ 37.6 |
Credited (charged) to net earnings | (1.4) | 56 |
Credited (charged) directly to equity | (0.3) | (8.1) |
Effects of foreign exchange | 1.2 | (2.1) |
Other | (2.5) | (46.7) |
Deferred tax assets, ending balance | 33.6 | 36.7 |
Reconciliation of changes in deferred tax liability [Roll Forward] | ||
Deferred tax liabilities, beginning balance | 25.5 | 27.8 |
Charged (credited) to net earnings | 5.3 | (0.8) |
Charged (credited) directly to equity | (9.9) | |
Additions from business combinations | (0.9) | 56.6 |
Effects of foreign exchange | 1 | (1.5) |
Other | (2.5) | (46.7) |
Deferred tax liabilities, ending balance | 28.4 | 25.5 |
Unrealized foreign exchange gains | ||
Reconciliation of changes in deferred tax liability [Roll Forward] | ||
Deferred tax liabilities, beginning balance | 24.6 | 25.2 |
Charged (credited) to net earnings | 0.8 | 1.5 |
Effects of foreign exchange | 1 | (2.1) |
Deferred tax liabilities, ending balance | 26.4 | 24.6 |
Accounting provisions not currently deductible | ||
Reconciliation of changes in deferred tax liability (asset) [abstract] | ||
Deferred tax assets, beginning balance | 10.8 | 8.8 |
Credited (charged) to net earnings | (1) | 2.1 |
Additions from business combinations | (0.1) | |
Effects of foreign exchange | (0.1) | (0.1) |
Deferred tax assets, ending balance | 9.6 | 10.8 |
Pensions and non-pension post-retirement benefits | ||
Reconciliation of changes in deferred tax liability (asset) [abstract] | ||
Credited (charged) to net earnings | 0.6 | |
Other | (0.8) | |
Deferred tax assets, ending balance | (0.2) | |
Reconciliation of changes in deferred tax liability [Roll Forward] | ||
Deferred tax liabilities, beginning balance | 0.8 | 10.6 |
Charged (credited) directly to equity | (9.9) | |
Effects of foreign exchange | 0.1 | |
Other | (0.8) | |
Deferred tax liabilities, ending balance | 0.8 | |
Tax losses carried forward | ||
Reconciliation of changes in deferred tax liability (asset) [abstract] | ||
Deferred tax assets, beginning balance | 59.5 | 34.6 |
Credited (charged) to net earnings | 2.1 | 36.8 |
Credited (charged) directly to equity | 0.3 | (9.8) |
Effects of foreign exchange | 1 | (2.1) |
Deferred tax assets, ending balance | 62.9 | 59.5 |
Property, plant and equipment and intangibles | ||
Reconciliation of changes in deferred tax liability (asset) [abstract] | ||
Deferred tax assets, beginning balance | 6.3 | |
Other | (6.3) | |
Reconciliation of changes in deferred tax liability [Roll Forward] | ||
Deferred tax liabilities, beginning balance | 48.5 | |
Charged (credited) to net earnings | 4.5 | (2.3) |
Additions from business combinations | (0.9) | 56.6 |
Effects of foreign exchange | 0.5 | |
Other | (6.3) | |
Deferred tax liabilities, ending balance | 52.1 | 48.5 |
Other | ||
Reconciliation of changes in deferred tax liability (asset) [abstract] | ||
Deferred tax assets, beginning balance | 14.8 | |
Credited (charged) to net earnings | (3.1) | 17.1 |
Credited (charged) directly to equity | (0.6) | 1.7 |
Effects of foreign exchange | 0.3 | 0.1 |
Other | (4.1) | |
Deferred tax assets, ending balance | 11.4 | 14.8 |
Reconciliation of changes in deferred tax liability [Roll Forward] | ||
Deferred tax liabilities, beginning balance | 4.1 | |
Other | (4.1) | |
Reclassification between deferred tax assets and deferred tax liabilities | ||
Reconciliation of changes in deferred tax liability (asset) [abstract] | ||
Deferred tax assets, beginning balance | (48.4) | (12.1) |
Other | (1.7) | (36.3) |
Deferred tax assets, ending balance | (50.1) | (48.4) |
Reconciliation of changes in deferred tax liability [Roll Forward] | ||
Deferred tax liabilities, beginning balance | (48.4) | (12.1) |
Other | (1.7) | (36.3) |
Deferred tax liabilities, ending balance | $ (50.1) | $ (48.4) |
Financial Instruments and Ris_3
Financial Instruments and Risk Management - Cash and Cash Equivalents (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Financial Instruments [Abstract] | ||||
Cash | $ 446.3 | $ 409.1 | ||
Cash equivalents | 33.2 | 12.9 | ||
Cash and cash equivalents | $ 479.5 | $ 422 | $ 515.2 | $ 557.2 |
Financial Instruments and Ris_4
Financial Instruments and Risk Management - Currency Risk (Details) - Currency risk $ in Millions | Dec. 31, 2019USD ($) |
Cash and cash equivalents | Canadian dollar | |
Disclosure of nature and extent of risks arising from financial instruments [line items] | |
Risk exposure associated with instruments sharing characteristic | $ 2 |
Cash and cash equivalents | Romanian Leu | |
Disclosure of nature and extent of risks arising from financial instruments [line items] | |
Risk exposure associated with instruments sharing characteristic | 0.6 |
Cash and cash equivalents | Euro | |
Disclosure of nature and extent of risks arising from financial instruments [line items] | |
Risk exposure associated with instruments sharing characteristic | 19.5 |
Cash and cash equivalents | Thai baht | |
Disclosure of nature and extent of risks arising from financial instruments [line items] | |
Risk exposure associated with instruments sharing characteristic | 2.7 |
Cash and cash equivalents | Chinese renminbi | |
Disclosure of nature and extent of risks arising from financial instruments [line items] | |
Risk exposure associated with instruments sharing characteristic | 37.1 |
A/R | Canadian dollar | |
Disclosure of nature and extent of risks arising from financial instruments [line items] | |
Risk exposure associated with instruments sharing characteristic | 3.1 |
A/R | Romanian Leu | |
Disclosure of nature and extent of risks arising from financial instruments [line items] | |
Risk exposure associated with instruments sharing characteristic | 0.5 |
A/R | Euro | |
Disclosure of nature and extent of risks arising from financial instruments [line items] | |
Risk exposure associated with instruments sharing characteristic | 46.4 |
A/R | Thai baht | |
Disclosure of nature and extent of risks arising from financial instruments [line items] | |
Risk exposure associated with instruments sharing characteristic | 1 |
A/R | Chinese renminbi | |
Disclosure of nature and extent of risks arising from financial instruments [line items] | |
Risk exposure associated with instruments sharing characteristic | 12.1 |
Income taxes and value-added taxes receivable | Canadian dollar | |
Disclosure of nature and extent of risks arising from financial instruments [line items] | |
Risk exposure associated with instruments sharing characteristic | 0 |
Income taxes and value-added taxes receivable | Romanian Leu | |
Disclosure of nature and extent of risks arising from financial instruments [line items] | |
Risk exposure associated with instruments sharing characteristic | 0.5 |
Income taxes and value-added taxes receivable | Euro | |
Disclosure of nature and extent of risks arising from financial instruments [line items] | |
Risk exposure associated with instruments sharing characteristic | 1.1 |
Income taxes and value-added taxes receivable | Thai baht | |
Disclosure of nature and extent of risks arising from financial instruments [line items] | |
Risk exposure associated with instruments sharing characteristic | 1.2 |
Income taxes and value-added taxes receivable | Chinese renminbi | |
Disclosure of nature and extent of risks arising from financial instruments [line items] | |
Risk exposure associated with instruments sharing characteristic | 2.4 |
Other financial assets | Canadian dollar | |
Disclosure of nature and extent of risks arising from financial instruments [line items] | |
Risk exposure associated with instruments sharing characteristic | 0 |
Other financial assets | Romanian Leu | |
Disclosure of nature and extent of risks arising from financial instruments [line items] | |
Risk exposure associated with instruments sharing characteristic | 0.7 |
Other financial assets | Euro | |
Disclosure of nature and extent of risks arising from financial instruments [line items] | |
Risk exposure associated with instruments sharing characteristic | 1.7 |
Other financial assets | Thai baht | |
Disclosure of nature and extent of risks arising from financial instruments [line items] | |
Risk exposure associated with instruments sharing characteristic | 0.6 |
Other financial assets | Chinese renminbi | |
Disclosure of nature and extent of risks arising from financial instruments [line items] | |
Risk exposure associated with instruments sharing characteristic | 0.3 |
Pension and non-pension post-employment liabilities | Canadian dollar | |
Disclosure of nature and extent of risks arising from financial instruments [line items] | |
Risk exposure associated with instruments sharing characteristic | (69.8) |
Pension and non-pension post-employment liabilities | Romanian Leu | |
Disclosure of nature and extent of risks arising from financial instruments [line items] | |
Risk exposure associated with instruments sharing characteristic | (0.1) |
Pension and non-pension post-employment liabilities | Euro | |
Disclosure of nature and extent of risks arising from financial instruments [line items] | |
Risk exposure associated with instruments sharing characteristic | (0.6) |
Pension and non-pension post-employment liabilities | Thai baht | |
Disclosure of nature and extent of risks arising from financial instruments [line items] | |
Risk exposure associated with instruments sharing characteristic | (13.3) |
Pension and non-pension post-employment liabilities | Chinese renminbi | |
Disclosure of nature and extent of risks arising from financial instruments [line items] | |
Risk exposure associated with instruments sharing characteristic | (0.7) |
Income taxes and value-added taxes payable | Canadian dollar | |
Disclosure of nature and extent of risks arising from financial instruments [line items] | |
Risk exposure associated with instruments sharing characteristic | (1.4) |
Income taxes and value-added taxes payable | Romanian Leu | |
Disclosure of nature and extent of risks arising from financial instruments [line items] | |
Risk exposure associated with instruments sharing characteristic | 0 |
Income taxes and value-added taxes payable | Euro | |
Disclosure of nature and extent of risks arising from financial instruments [line items] | |
Risk exposure associated with instruments sharing characteristic | (0.6) |
Income taxes and value-added taxes payable | Thai baht | |
Disclosure of nature and extent of risks arising from financial instruments [line items] | |
Risk exposure associated with instruments sharing characteristic | (2.1) |
Income taxes and value-added taxes payable | Chinese renminbi | |
Disclosure of nature and extent of risks arising from financial instruments [line items] | |
Risk exposure associated with instruments sharing characteristic | (6.7) |
A/P and certain accrued and other liabilities and provisions | Canadian dollar | |
Disclosure of nature and extent of risks arising from financial instruments [line items] | |
Risk exposure associated with instruments sharing characteristic | (54.4) |
A/P and certain accrued and other liabilities and provisions | Romanian Leu | |
Disclosure of nature and extent of risks arising from financial instruments [line items] | |
Risk exposure associated with instruments sharing characteristic | (10.5) |
A/P and certain accrued and other liabilities and provisions | Euro | |
Disclosure of nature and extent of risks arising from financial instruments [line items] | |
Risk exposure associated with instruments sharing characteristic | (39.2) |
A/P and certain accrued and other liabilities and provisions | Thai baht | |
Disclosure of nature and extent of risks arising from financial instruments [line items] | |
Risk exposure associated with instruments sharing characteristic | (31.9) |
A/P and certain accrued and other liabilities and provisions | Chinese renminbi | |
Disclosure of nature and extent of risks arising from financial instruments [line items] | |
Risk exposure associated with instruments sharing characteristic | (28.3) |
Net financial assets (liabilities) | Canadian dollar | |
Disclosure of nature and extent of risks arising from financial instruments [line items] | |
Risk exposure associated with instruments sharing characteristic | (120.5) |
Net financial assets (liabilities) | Romanian Leu | |
Disclosure of nature and extent of risks arising from financial instruments [line items] | |
Risk exposure associated with instruments sharing characteristic | (8.3) |
Net financial assets (liabilities) | Euro | |
Disclosure of nature and extent of risks arising from financial instruments [line items] | |
Risk exposure associated with instruments sharing characteristic | 28.3 |
Net financial assets (liabilities) | Thai baht | |
Disclosure of nature and extent of risks arising from financial instruments [line items] | |
Risk exposure associated with instruments sharing characteristic | (41.8) |
Net financial assets (liabilities) | Chinese renminbi | |
Disclosure of nature and extent of risks arising from financial instruments [line items] | |
Risk exposure associated with instruments sharing characteristic | $ 16.2 |
Financial Instruments and Ris_5
Financial Instruments and Risk Management - Foreign Currency Sensitivity Analysis (Details) - Currency risk $ in Millions | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Disclosure of nature and extent of risks arising from financial instruments [line items] | |
Reasonably possible change in risk variable, percentage | 1.00% |
Canadian dollar | |
Disclosure of nature and extent of risks arising from financial instruments [line items] | |
Reasonably possible increase in risk variable, impact on net earnings | $ (0.2) |
Reasonably possible increase in risk variable, impact on other comprehensive income | 1 |
Reasonably possible decrease in risk variable, impact on net earnings | 0.2 |
Reasonably possible decrease in risk variable, impact on other comprehensive income | (1) |
Romanian Leu | |
Disclosure of nature and extent of risks arising from financial instruments [line items] | |
Reasonably possible increase in risk variable, impact on net earnings | (0.1) |
Reasonably possible increase in risk variable, impact on other comprehensive income | 0.3 |
Reasonably possible decrease in risk variable, impact on net earnings | 0.1 |
Reasonably possible decrease in risk variable, impact on other comprehensive income | (0.3) |
Euro | |
Disclosure of nature and extent of risks arising from financial instruments [line items] | |
Reasonably possible increase in risk variable, impact on net earnings | 0.1 |
Reasonably possible increase in risk variable, impact on other comprehensive income | 0 |
Reasonably possible decrease in risk variable, impact on net earnings | (0.1) |
Reasonably possible decrease in risk variable, impact on other comprehensive income | 0 |
Thai baht | |
Disclosure of nature and extent of risks arising from financial instruments [line items] | |
Reasonably possible increase in risk variable, impact on net earnings | (0.1) |
Reasonably possible increase in risk variable, impact on other comprehensive income | 0.7 |
Reasonably possible decrease in risk variable, impact on net earnings | 0.1 |
Reasonably possible decrease in risk variable, impact on other comprehensive income | (0.7) |
Chinese renminbi | |
Disclosure of nature and extent of risks arising from financial instruments [line items] | |
Reasonably possible increase in risk variable, impact on net earnings | 0 |
Reasonably possible increase in risk variable, impact on other comprehensive income | 0.3 |
Reasonably possible decrease in risk variable, impact on net earnings | 0 |
Reasonably possible decrease in risk variable, impact on other comprehensive income | $ (0.3) |
Financial Instruments and Ris_6
Financial Instruments and Risk Management - Interest Rate Risk (Details) - USD ($) | 5 Months Ended | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of nature and extent of risks arising from financial instruments [line items] | |||
Borrowings | $ 159,000,000 | $ 0 | $ 159,000,000 |
Fair value gain/(loss) | $ (4,500,000) | 14,200,000 | |
Interest rate risk | |||
Disclosure of nature and extent of risks arising from financial instruments [line items] | |||
Reasonably possible change in risk variable, percentage | 1.00% | ||
Reasonably possible change in risk variable, impact on interest expense | $ 5,900,000 | ||
Hedging instrument, term | 5 years | ||
Reasonably possible change in risk variable, unhedged items, impact on interest expense | 2,400,000 | ||
Fair value gain/(loss) | $ 12,100,000 | ||
Reasonable possible change in risk variable, unrealized loss, percentage | 0.25% | ||
New credit facility | |||
Disclosure of nature and extent of risks arising from financial instruments [line items] | |||
Borrowings | $ 592,300,000 | ||
Unhedged borrowings | 242,300,000 | ||
Prior credit facility | |||
Disclosure of nature and extent of risks arising from financial instruments [line items] | |||
Borrowings | $ 757,300,000 | 592,300,000 | 757,300,000 |
New Term Loans | |||
Disclosure of nature and extent of risks arising from financial instruments [line items] | |||
Borrowings | 592,300,000 | ||
Unhedged borrowings | 242,300,000 | ||
New Term Loans | Interest rate risk | |||
Disclosure of nature and extent of risks arising from financial instruments [line items] | |||
Hedging instrument, term | 5 years | ||
Hedged item, liabilities | $ 350,000,000 | 350,000,000 | 350,000,000 |
Hedged item, subject to cancellation | 150,000,000 | 150,000,000 | |
New Term Loans, November | Interest rate risk | |||
Disclosure of nature and extent of risks arising from financial instruments [line items] | |||
Hedged item, liabilities | 350,000,000 | 350,000,000 | |
Hedged item, subject to cancellation | 75,000,000 | 75,000,000 | |
New Term Loans, June | Interest rate risk | |||
Disclosure of nature and extent of risks arising from financial instruments [line items] | |||
Hedged item, subject to cancellation | 75,000,000 | 75,000,000 | |
Term Loans | |||
Disclosure of nature and extent of risks arising from financial instruments [line items] | |||
Borrowings | 598,300,000 | 592,300,000 | 598,300,000 |
Revolver | |||
Disclosure of nature and extent of risks arising from financial instruments [line items] | |||
Borrowings | $ 159,000,000 | 0 | $ 159,000,000 |
Minimum | |||
Disclosure of nature and extent of risks arising from financial instruments [line items] | |||
Reasonably possible change in risk variable, impact on unrealized loss | 2,100,000 | ||
Maximum | Interest rate risk | |||
Disclosure of nature and extent of risks arising from financial instruments [line items] | |||
Reasonably possible change in risk variable, impact on unrealized loss | $ 2,000,000 |
Financial Instruments and Ris_7
Financial Instruments and Risk Management - Credit and Liquidity Risk (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Financial Instruments [Abstract] | ||
Percent of gross accounts receivable over 90 days past due (less than in 2019) | 2.00% | 1.00% |
Allowance for doubtful accounts | $ 4.2 | $ 5.3 |
Financial Instruments and Ris_8
Financial Instruments and Risk Management - Fair Value Measurement (Details) - Fair value - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Derivatives | Level 1 | ||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||
Liabilities | $ 0 | $ 0 |
Derivatives | Level 2 | ||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||
Liabilities | (15) | (20.7) |
Currency risk | Derivatives | Level 1 | ||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||
Liabilities | 0 | 0 |
Currency risk | Derivatives | Level 2 | ||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||
Liabilities | (2.9) | (16.3) |
Currency risk | Derivatives | Level 1 | ||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||
Assets | 0 | 0 |
Currency risk | Derivatives | Level 2 | ||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||
Assets | 7.4 | 2.1 |
Interest rate risk | Derivatives | Level 1 | ||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||
Liabilities | 0 | 0 |
Interest rate risk | Derivatives | Level 2 | ||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||
Liabilities | $ (12.1) | $ (4.4) |
Financial Instruments and Ris_9
Financial Instruments and Risk Management - Derivative and Hedging Instruments (Details) $ in Millions | 12 Months Ended | |
Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | |
Disclosure of detailed information about hedging instruments [line items] | ||
Contract amount of U.S. dollars | $ 523.9 | $ 544.2 |
Fair value gain/(loss) | 4.5 | (14.2) |
Derivative assets | 7.4 | 2.1 |
Derivative liabilities | 2.9 | 16.3 |
Canadian dollar | ||
Disclosure of detailed information about hedging instruments [line items] | ||
Contract amount of U.S. dollars | $ 195.6 | $ 210.2 |
Weighted average exchange rate in U.S. dollars (in dollars per share) | 0.76 | 0.76 |
Maximum period in months | 12 months | 12 months |
Fair value gain/(loss) | $ 2.1 | $ (10.3) |
Thai baht | ||
Disclosure of detailed information about hedging instruments [line items] | ||
Contract amount of U.S. dollars | $ 98.8 | $ 81.1 |
Weighted average exchange rate in U.S. dollars (in dollars per share) | 0.03 | 0.03 |
Maximum period in months | 12 months | 12 months |
Fair value gain/(loss) | $ 2.1 | $ (0.7) |
Malaysian ringgit | ||
Disclosure of detailed information about hedging instruments [line items] | ||
Contract amount of U.S. dollars | $ 54.1 | $ 53.4 |
Weighted average exchange rate in U.S. dollars (in dollars per share) | 0.24 | 0.24 |
Maximum period in months | 12 months | 12 months |
Fair value gain/(loss) | $ 0.4 | $ (0.8) |
Mexican peso | ||
Disclosure of detailed information about hedging instruments [line items] | ||
Contract amount of U.S. dollars | $ 22.4 | $ 25.6 |
Weighted average exchange rate in U.S. dollars (in dollars per share) | 0.05 | 0.05 |
Maximum period in months | 12 months | 12 months |
Fair value gain/(loss) | $ 0.9 | $ 0.2 |
British pound | ||
Disclosure of detailed information about hedging instruments [line items] | ||
Contract amount of U.S. dollars | $ 2.2 | $ 5.3 |
Weighted average exchange rate in U.S. dollars (in dollars per share) | 1.29 | 1.27 |
Maximum period in months | 4 months | 4 months |
Fair value gain/(loss) | $ 0.1 | $ 0 |
Chinese renminbi | ||
Disclosure of detailed information about hedging instruments [line items] | ||
Contract amount of U.S. dollars | $ 48.8 | $ 66.8 |
Weighted average exchange rate in U.S. dollars (in dollars per share) | 0.14 | 0.15 |
Maximum period in months | 12 months | 12 months |
Fair value gain/(loss) | $ (0.7) | $ (1.6) |
Euro | ||
Disclosure of detailed information about hedging instruments [line items] | ||
Contract amount of U.S. dollars | $ 26.1 | $ 35.8 |
Weighted average exchange rate in U.S. dollars (in dollars per share) | 1.12 | 1.17 |
Maximum period in months | 12 months | 12 months |
Fair value gain/(loss) | $ (0.5) | $ 0.3 |
Romanian Leu | ||
Disclosure of detailed information about hedging instruments [line items] | ||
Contract amount of U.S. dollars | $ 33.5 | $ 40.4 |
Weighted average exchange rate in U.S. dollars (in dollars per share) | 0.23 | 0.25 |
Maximum period in months | 12 months | 12 months |
Fair value gain/(loss) | $ 0.1 | $ (0.9) |
Singapore dollar | ||
Disclosure of detailed information about hedging instruments [line items] | ||
Contract amount of U.S. dollars | $ 23.9 | $ 22.1 |
Weighted average exchange rate in U.S. dollars (in dollars per share) | 0.74 | 0.74 |
Maximum period in months | 12 months | 12 months |
Fair value gain/(loss) | $ 0.2 | $ (0.3) |
Other | ||
Disclosure of detailed information about hedging instruments [line items] | ||
Contract amount of U.S. dollars | $ 18.5 | $ 3.5 |
Weighted average exchange rate in U.S. dollars (in dollars per share) | 0 | 0 |
Maximum period in months | 4 months | 1 month |
Fair value gain/(loss) | $ (0.2) | $ (0.1) |
Capital Disclosures (Details)
Capital Disclosures (Details) - USD ($) | 1 Months Ended | 11 Months Ended | 12 Months Ended | ||||
Jan. 15, 2020 | Jun. 30, 2018 | Nov. 30, 2019 | Mar. 01, 2021 | Dec. 31, 2019 | Dec. 31, 2018 | Nov. 30, 2018 | |
Disclosure of detailed information about borrowings [line items] | |||||||
Borrowings, notional amount | $ 523,900,000 | $ 544,200,000 | |||||
Sub-limit for letters of credit outstanding | 13,300,000 | 14,400,000 | |||||
Available borrowings | 142,500,000 | 132,800,000 | |||||
Factoring of receivables from facility program | |||||||
Disclosure of detailed information about borrowings [line items] | |||||||
Agreement to sell trade receivables, maximum capacity | $ 200,000,000 | $ 250,000,000 | |||||
Accounts receivable sold during period | 90,600,000 | 130,000,000 | |||||
Factoring of receivables from supplier financing program | |||||||
Disclosure of detailed information about borrowings [line items] | |||||||
Accounts receivable sold during period | 50,400,000 | 50,000,000 | |||||
New credit facility | |||||||
Disclosure of detailed information about borrowings [line items] | |||||||
Borrowings, notional amount | $ 800,000,000 | ||||||
Amount of accordion feature | 110,000,000 | ||||||
New Term Loans, June | |||||||
Disclosure of detailed information about borrowings [line items] | |||||||
Borrowings, notional amount | 350,000,000 | ||||||
Revolving Facility Due June 2023 | |||||||
Disclosure of detailed information about borrowings [line items] | |||||||
Line of credit, maximum borrowing capacity | 450,000,000 | ||||||
Amount of accordion feature | 110,000,000 | ||||||
Sub-limit for letters of credit outstanding | 150,000,000 | 21,200,000 | $ 21,300,000 | ||||
Available borrowings | $ 428,800,000 | ||||||
Revolving Facility Due June 2023 | Bridge Loan | |||||||
Disclosure of detailed information about borrowings [line items] | |||||||
Line of credit, maximum borrowing capacity | $ 50,000,000 | ||||||
Short-term borrowings, maximum term | 10 days | ||||||
Revolving Facility Due June 2023 | Bridge Loan | Top of range | |||||||
Disclosure of detailed information about borrowings [line items] | |||||||
Debt instrument term | 10 days | ||||||
New Term Loans, November | |||||||
Disclosure of detailed information about borrowings [line items] | |||||||
Amount of accordion feature | $ 250,000,000 | ||||||
New Agreement To Sell Accounts Receivable | Factoring of receivables from facility program | |||||||
Disclosure of detailed information about borrowings [line items] | |||||||
Agreement to sell trade receivables, maximum capacity | $ 200,000,000 | $ 235,000,000 |
Weighted Average Number of Sh_3
Weighted Average Number of Shares Diluted (Details) - shares shares in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Earnings per share [abstract] | |||
Weighted average number of shares (basic) (in shares) | 131 | 139.4 | 143.1 |
Dilutive effect of outstanding awards under SBC plans (in shares) | 0.8 | 1.2 | 2.1 |
Weighted average number of shares (diluted) (in shares) | 131.8 | 140.6 | 145.2 |
Stock-based awards excluded from diluted weighted average per share calculation (in shares) | 0.3 | 0.3 | 0.2 |
Commitments, Contingencies an_3
Commitments, Contingencies and Guarantees - Future Minimum Lease Payments (Details) $ in Millions | Dec. 31, 2019USD ($) |
Lessee, Leases, Description [Line Items] | |
Other | $ 134.8 |
2020 | |
Lessee, Leases, Description [Line Items] | |
Other | 24.4 |
2021 | |
Lessee, Leases, Description [Line Items] | |
Other | 18.6 |
2022 | |
Lessee, Leases, Description [Line Items] | |
Other | 14.9 |
2023 | |
Lessee, Leases, Description [Line Items] | |
Other | 14.5 |
2024 | |
Lessee, Leases, Description [Line Items] | |
Other | 12.6 |
Thereafter | |
Lessee, Leases, Description [Line Items] | |
Other | $ 49.8 |
Commitments, Contingencies an_4
Commitments, Contingencies and Guarantees - Additional Information (Details) R$ in Millions, $ in Millions, $ in Millions | 1 Months Ended | 60 Months Ended | ||||
Mar. 31, 2019extension | Apr. 30, 2032CAD ($) | Apr. 30, 2027CAD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2019BRL (R$) | Dec. 31, 2018USD ($) | |
Disclosure of contingent liabilities [line items] | ||||||
Capital expenditures principally for machinery and equipment | $ 23.1 | |||||
Purchase orders issued for capital expenditures | 6 | |||||
Letters of credit outstanding | 13.3 | $ 14.4 | ||||
Lease term | 10 years | |||||
Number of extension options | extension | 2 | |||||
Extension term | 5 years | |||||
Guarantees | ||||||
Disclosure of contingent liabilities [line items] | ||||||
Estimated financial effect of contingent liabilities | 34.5 | 35.7 | ||||
Guarantees | Prior credit facility | ||||||
Disclosure of contingent liabilities [line items] | ||||||
Letters of credit outstanding | 21.2 | $ 21.3 | ||||
Research and development assessments against Brazilian Subsidiary | ||||||
Disclosure of contingent liabilities [line items] | ||||||
Estimated financial effect of contingent liabilities | $ 10 | R$ 39 | ||||
Forecast | ||||||
Disclosure of contingent liabilities [line items] | ||||||
Annual base rent expense | $ 2.7 | $ 2.5 |
Segment and Geographic Inform_3
Segment and Geographic Information - Additional Information (Details) - Segment | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2017 | |
Operating Segments [Abstract] | |||
Number of operating segments | 2 | 1 | |
Number of reportable segments | 2 |
Segment and Geographic Inform_4
Segment and Geographic Information - Revenue By Segment (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of operating segments [line items] | |||
Revenue | $ 5,888.3 | $ 6,633.2 | $ 6,142.7 |
ATS | |||
Disclosure of operating segments [line items] | |||
Revenue | $ 2,285.6 | $ 2,209.7 | $ 1,958.6 |
Percentage of entity's revenue (percent) | 39.00% | 33.00% | 32.00% |
CCS | |||
Disclosure of operating segments [line items] | |||
Revenue | $ 3,602.7 | $ 4,423.5 | $ 4,184.1 |
Percentage of entity's revenue (percent) | 61.00% | 67.00% | 68.00% |
Segment and Geographic Inform_5
Segment and Geographic Information - Reconciliation to IFRS Earnings Before Income Taxes (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of operating segments [line items] | |||
Segment income | $ 149.3 | $ 106.3 | $ 143.2 |
Reconciling items: | |||
Employee SBC expense | 34.1 | 33.4 | 30.1 |
Amortization of intangible assets (excluding computer software) | 29.6 | 15.4 | 8.9 |
Other Charges (Recoveries) (note 16) | (49.9) | 61 | 37 |
Other solar charges (inventory and A/R write-down) | 9.8 | 0.2 | |
Earnings before income taxes | $ 99.8 | $ 81.9 | $ 133.1 |
ATS | |||
Disclosure of operating segments [line items] | |||
Segment margin (as a percentage) | 2.80% | 4.60% | 4.90% |
CCS | |||
Disclosure of operating segments [line items] | |||
Segment margin (as a percentage) | 2.60% | 2.50% | 2.90% |
Operating segments | |||
Disclosure of operating segments [line items] | |||
Segment income | $ 158.1 | $ 213.9 | $ 217.2 |
Operating segments | ATS | |||
Disclosure of operating segments [line items] | |||
Segment income | 64.2 | 102.5 | 96.8 |
Operating segments | CCS | |||
Disclosure of operating segments [line items] | |||
Segment income | 93.9 | 111.4 | 120.4 |
Reconciling items | |||
Reconciling items: | |||
Finance costs | 49.5 | 24.4 | 10.1 |
Employee SBC expense | 34.1 | 33.4 | 30.1 |
Other Charges (Recoveries) (note 16) | (49.9) | 61 | 37 |
Inventory fair value adjustment (note 3) | 0 | 1.6 | 0 |
Reconciling items | Intangible assets, excluding computer software | |||
Reconciling items: | |||
Amortization of intangible assets (excluding computer software) | 24.6 | 11.6 | 5.5 |
Reconciling items | Solar charges | |||
Reconciling items: | |||
Other solar charges (inventory and A/R write-down) | $ 0 | $ 0 | $ 1.4 |
Segment and Geographic Inform_6
Segment and Geographic Information - External Revenue Allocated By Manufacturing Location (Details) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Thailand | |||
Disclosure of operating segments [line items] | |||
Percentage of entity's revenue (percent) | 34.00% | 32.00% | 34.00% |
China | |||
Disclosure of operating segments [line items] | |||
Percentage of entity's revenue (percent) | 18.00% | 20.00% | 21.00% |
Malaysia | |||
Disclosure of operating segments [line items] | |||
Percentage of entity's revenue (percent) | 12.00% | 12.00% | 12.00% |
Segment and Geographic Inform_7
Segment and Geographic Information - Allocation of Property, Plant and Equipment, Intangible Assets and Goodwill (Details) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
China | ||
Disclosure of geographical areas [line items] | ||
Property, plant and equipment, among countries that exceeded 10% (as a percentage of total) | 14.00% | 19.00% |
Thailand | ||
Disclosure of geographical areas [line items] | ||
Property, plant and equipment, among countries that exceeded 10% (as a percentage of total) | 16.00% | 16.00% |
Malaysia | ||
Disclosure of geographical areas [line items] | ||
Property, plant and equipment, among countries that exceeded 10% (as a percentage of total) | 13.00% | |
Romania | ||
Disclosure of geographical areas [line items] | ||
Property, plant and equipment, among countries that exceeded 10% (as a percentage of total) | 11.00% | 15.00% |
United States | ||
Disclosure of geographical areas [line items] | ||
Property, plant and equipment, among countries that exceeded 10% (as a percentage of total) | 16.00% | 15.00% |
Intangible assets and goodwill, among countries that exceeded 10% (as a percentage of total) | 86.00% | 96.00% |
South Korea | ||
Disclosure of geographical areas [line items] | ||
Intangible assets and goodwill, among countries that exceeded 10% (as a percentage of total) | 10.00% |
Segment and Geographic Inform_8
Segment and Geographic Information - Customers by Percentage of Total Revenue (Details) - Revenue - Customer Concentration Risk | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of major customers [line items] | |||
Percentage of revenue attributable to customer (percent) | 12.00% | 24.00% | 31.00% |
Cisco Systems | |||
Disclosure of major customers [line items] | |||
Percentage of revenue attributable to customer (percent) | 12.00% | 14.00% | 18.00% |
Dell Inc | |||
Disclosure of major customers [line items] | |||
Percentage of revenue attributable to customer (percent) | 10.00% | ||
Juniper Networks, Inc. | |||
Disclosure of major customers [line items] | |||
Percentage of revenue attributable to customer (percent) | 13.00% |
Uncategorized Items - cls-20191
Label | Element | Value |
Payments for debt issue costs | ifrs-full_PaymentsForDebtIssueCosts | $ 2,000,000 |
Land [member] | ||
Right-of-use assets | ifrs-full_RightofuseAssets | 7,300,000 |
Other property, plant and equipment [member] | ||
Right-of-use assets | ifrs-full_RightofuseAssets | 700,000 |
Buildings [member] | ||
Right-of-use assets | ifrs-full_RightofuseAssets | $ 103,500,000 |