Document and Entity Information
Document and Entity Information | 12 Months Ended |
Dec. 31, 2017shares | |
Document and Entity Information [Abstract] | |
Entity Registrant Name | Maxar Technologies Ltd. |
Entity Central Index Key | 1,121,142 |
Document Type | 40-F |
Document Period End Date | Dec. 31, 2017 |
Amendment Flag | false |
Current Fiscal Year End Date | --12-31 |
Entity Current Reporting Status | Yes |
Entity Common Stock, Shares Outstanding | 56,211,974 |
Document Fiscal Year Focus | 2,017 |
Document Fiscal Period Focus | FY |
Consolidated Statements of Earn
Consolidated Statements of Earnings - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Consolidated Statements of Earnings | ||
Revenues | $ 1,631.2 | $ 1,557.5 |
Direct costs, selling, general and administration | 1,254.5 | 1,289.1 |
Depreciation and amortization | 167.1 | 77.4 |
Foreign exchange loss (gain) | (13.5) | 3.6 |
Share-based compensation expense | 57.9 | 14.7 |
Other expense | 119.4 | 5.9 |
Earnings before interest and income taxes | 45.8 | 166.8 |
Finance income | (1.3) | (0.3) |
Finance expense | 82.5 | 37.6 |
Earnings (loss) before income taxes | (35.4) | 129.5 |
Equity in loss from joint ventures, net of tax | 0.5 | |
Income tax expense (recovery) | (136.3) | 23.9 |
Net earnings | $ 100.4 | $ 105.6 |
Net earnings per common share: | ||
Basic (in dollar per share) | $ 2.44 | $ 2.90 |
Diluted (in dollar per share) | $ 2.43 | $ 2.83 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Consolidated Statements of Comprehensive Income | ||
Net earnings | $ 100.4 | $ 105.6 |
Items that may be subsequently reclassified to earnings: | ||
Foreign currency translation adjustment | 5.6 | (1.8) |
Net gain (loss) on hedge of net investment in foreign operations (net of income tax expense of $0.2 million and $0.4 million, respectively) | (0.2) | 4.8 |
Effective portion of changes in fair value of derivatives designated as cash flow hedges (net of income tax expense of $1.1 million and income tax recovery of $0.4 million, respectively) | (2) | (7.2) |
Net change in fair value of derivatives designated as cash flow hedges transferred to earnings (net of income tax recovery of $1.2 and $0.1 million, respectively) | (4.9) | (1) |
Net change in fair value of available-for-sale financial assets (net of income tax recovery of $0.1 million and income taxes of $nil, respectively) | (0.7) | 0.1 |
Total other comprehensive income (loss) that may be reclassified to profit or loss, net of tax | (2.2) | (5.1) |
Items that will not be subsequently reclassified to earnings: | ||
Actuarial losses on defined benefit pension plans and other post-retirement benefit plans (net of income tax expense of $9.4 million and income tax recovery of $0.6 million, respectively) | (3.2) | (8.3) |
Total other comprehensive income (loss) that will not be reclassified to profit or loss, net of tax | (3.2) | (8.3) |
Other comprehensive loss, net of income taxes | (5.4) | (13.4) |
Comprehensive income | $ 95 | $ 92.2 |
Consolidated Statements of Com4
Consolidated Statements of Comprehensive Income - Parenthetical - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Consolidated Statements of Comprehensive Income | ||
Net gain (loss) on hedge of net investment in foreign operations, income tax expense (recovery) | $ 200 | $ 400 |
Effective portion of changes in fair value of derivatives designated as cash flow hedges, income tax expense (recovery) | 1,100 | (400) |
Net change in fair value of derivatives designated as cash flow hedges transferred to earnings, income tax expense (recovery) | 1,200 | 100 |
Net change in fair value of available-for-sale financial assets, income tax expense (recovery) | (100) | 0 |
Actuarial losses on defined benefit pension plans and other post-retirement benefit plans, income tax expense (recovery) | $ 9,400 | $ (600) |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 | Jan. 01, 2016 |
Current assets: | |||
Cash and cash equivalents | $ 19.1 | $ 14.1 | $ 30 |
Trade and other receivables | 348.2 | 231.1 | 273.9 |
Financial assets, other | 16.3 | 64.7 | 47.4 |
Construction contract assets | 128.3 | 85.3 | 143.3 |
Inventories | 96.5 | 97.6 | 98.9 |
Non-financial assets | 125.2 | 124.2 | 120.6 |
Current tax assets | 71.7 | 49.3 | 50.1 |
Total current assets | 805.3 | 666.3 | 764.2 |
Non-current assets: | |||
Orbital receivables | 424.2 | 418.4 | 409.7 |
Financial assets, other | 67.8 | 60.9 | 55.1 |
Inventories | 5.3 | 5.3 | 5.3 |
Non-financial assets | 63.7 | 4.2 | 3.5 |
Deferred tax assets | 108.3 | 15 | 9.4 |
Property, plant and equipment | 1,054.9 | 360 | 351.5 |
Intangible assets | 1,753.4 | 331.6 | 313.4 |
Goodwill | 2,374.4 | 699.5 | 697 |
Total non-current assets | 5,852 | 1,894.9 | 1,844.9 |
Assets | 6,657.3 | 2,561.2 | 2,609.1 |
Current liabilities: | |||
Bank overdraft | 17.9 | ||
Trade and other payables | 236.9 | 186 | 167.3 |
Current tax liabilities | 49.2 | 41.3 | 46.1 |
Financial liabilities, other | 18.9 | 17.3 | 32 |
Provisions | 8.7 | 4.7 | 9.2 |
Employee benefits | 123.9 | 89.4 | 76.9 |
Non-financial liabilities | 209.2 | 12.9 | 16.3 |
Construction contract liabilities | 258.9 | 293 | 438.4 |
Securitization liability | 15.5 | 14.9 | |
Current portion of long-term debt | 18.1 | 101.9 | 2 |
Current liabilities | 939.3 | 779.3 | 788.2 |
Non-current liabilities: | |||
Financial liabilities, other | 13.8 | 15.4 | 21.4 |
Provisions | 159.3 | 33.2 | 28.9 |
Employee benefits | 217.6 | 238.1 | 231.3 |
Non-financial liabilities | 176.4 | 15.8 | 18.7 |
Deferred tax liabilities | 103.6 | 11.3 | 9.5 |
Securitization liability | 90.8 | 106.3 | |
Long-term debt | 2,942.9 | 498.8 | 710.7 |
Total liabilities | 4,643.7 | 1,698.2 | 1,808.7 |
Shareholders' equity: | |||
Share capital | 1,550.3 | 466.9 | 455.8 |
Contributed surplus | 50.6 | 31 | 30.7 |
Retained earnings | 261.8 | 208.8 | 144.2 |
Accumulated other comprehensive income | 150.9 | 156.3 | 169.7 |
Shareholders' equity | 2,013.6 | 863 | 800.4 |
Liabilities and Shareholders' Equity | $ 6,657.3 | $ 2,561.2 | $ 2,609.1 |
Consolidated Statements of Chan
Consolidated Statements of Change in Shareholders' Equity - USD ($) $ in Millions | Employee Share Purchase PlanShare Capital | Employee Share Purchase Plan | Equity-settled SARsShare Capital | Equity-settled SARsContributed Surplus | DigitalGlobeShare Capital | DigitalGlobeContributed Surplus | DigitalGlobe | Share Capital | Contributed Surplus | Retained Earnings | Total accumulated other comprehensive income | Net gain (loss) on hedge of net investment in foreign operations | Foreign currency translation adjustment | Fair value gains (losses) on cash flow hedges | Fair value gains on available-for-sale financial assets | Actuarial gains (losses) on defined benefit pension plans and other post retirement benefit plans | Total |
Balance at beginning of period at Dec. 31, 2015 | $ 455.8 | $ 30.7 | $ 144.2 | $ 169.7 | $ (33.2) | $ 154.1 | $ 18.4 | $ 0.6 | $ 29.8 | $ 800.4 | |||||||
Common shares issued | $ 4.1 | $ 4.1 | $ 7 | $ (7) | |||||||||||||
Equity-settled share-based compensation expense (note 22(f)) | 7.3 | 7.3 | |||||||||||||||
Dividends | (41) | (41) | |||||||||||||||
Comprehensive income (loss) | 105.6 | (13.4) | 4.8 | (1.8) | (8.2) | 0.1 | (8.3) | 92.2 | |||||||||
Balance at end of period at Dec. 31, 2016 | 466.9 | 31 | 208.8 | 156.3 | (28.4) | 152.3 | 10.2 | 0.7 | 21.5 | 863 | |||||||
Common shares issued | $ 4.5 | $ 4.5 | $ 7.8 | $ (7.8) | $ 1,071.1 | $ 1,071.1 | |||||||||||
Equity-settled share-based compensation expense (note 22(f)) | 11.6 | 11.6 | |||||||||||||||
Issuance of replacement equity-settled awards pursuant to acquisition (note 9) | $ 15.8 | $ 15.8 | |||||||||||||||
Dividends | (47.4) | (47.4) | |||||||||||||||
Comprehensive income (loss) | 100.4 | (5.4) | (0.2) | 5.6 | (6.9) | $ (0.7) | (3.2) | 95 | |||||||||
Balance at end of period at Dec. 31, 2017 | $ 1,550.3 | $ 50.6 | $ 261.8 | $ 150.9 | $ (28.6) | $ 157.9 | $ 3.3 | $ 18.3 | $ 2,013.6 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Operating activities: | ||
Net earnings | $ 100.4 | $ 105.6 |
Adjustments to reconcile to net cash from operating activities: | ||
Depreciation of property, plant and equipment | 61.1 | 33.9 |
Amortization of intangible assets | 106 | 43.5 |
Share-based compensation expense | 33.4 | 14.7 |
Finance income | (1.3) | (0.3) |
Finance expense | 73.3 | 28 |
Unrealized foreign exchange loss (gain) | (12.3) | 7.2 |
Loss from early extinguishment of debt | 23 | |
Income tax expense (recovery) | (136.3) | 23.9 |
Income taxes paid | (4.9) | (10.8) |
Income taxes recovered | 6 | 3.9 |
Changes in operating assets and liabilities | (42.5) | (119.2) |
Cash provided by operating activities | 205.9 | 130.4 |
Investing activities: | ||
Purchase of property, plant and equipment | (49.7) | (39.6) |
Purchase/development of intangible assets | (76.9) | (61.4) |
Acquisition of DigitalGlobe, net of cash acquired | (2,273) | |
Disposal of short-term investments | 4.2 | 0.1 |
Decrease in restricted cash | 6.4 | 0.4 |
Interest received on short-term investments and others | 1.3 | 0.3 |
Cash used in investing activities | (2,387.7) | (100.2) |
Financing activities: | ||
Issuance of long-term debt related to acquisition, net of financing fees | 3,096.7 | |
Repayment of revolving loan facility and other long-term debt | (425.9) | (100.8) |
Interest paid on long-term debt | (40.5) | (30.1) |
Proceeds from revolving securitization facility | 123.2 | |
Settlement of securitization liability, including interest | (21.8) | (3.4) |
Repayment of interest free government assistance | (1) | (0.9) |
Proceeds from issuance of common shares issued under employee share purchase plan | 3.8 | 3.5 |
Share issuance costs | (2.5) | |
Payment of dividends | (47.4) | (40.9) |
Cash provided by (used in) financing activities | 2,205.1 | (63.2) |
Increase (decrease) in cash and cash equivalents | 23.3 | (33) |
Effect of foreign exchange on cash and cash equivalents | (0.4) | (0.8) |
Cash and cash equivalents, beginning of year | (3.8) | 30 |
Cash and cash equivalents, end of year | 19.1 | (3.8) |
2017 Term notes | ||
Financing activities: | ||
Repayment of Term Notes | (100) | |
2024 Term notes | ||
Financing activities: | ||
Repayment of Term Notes | $ (256.3) | $ (13.8) |
General business description
General business description | 12 Months Ended |
Dec. 31, 2017 | |
General business description | |
General business description | 1. General business description: Maxar Technologies Ltd. (the “Company” or “Maxar”) is a corporation continued under the laws of the province of British Columbia, Canada with common shares listed on the Toronto Stock Exchange (“TSX”) and New York Stock Exchange (“NYSE”). On October 5, 2017, the Company’s name was changed from MacDonald, Dettwiler and Associates Ltd. to Maxar Technologies Ltd. The Company’s registered office is located at Suite 1700, 666 Burrard Street, Vancouver, British Columbia, Canada. Maxar is an industry leading vertically-integrated space and geospatial intelligence company with a full range of space technology solutions for commercial and government customers including satellites, Earth imagery, geospatial data and analytics. |
Basis of preparation
Basis of preparation | 12 Months Ended |
Dec. 31, 2017 | |
Basis of preparation | |
Basis of preparation | 2. Basis of preparation: (a) Statement of compliance: These consolidated financial statements have been prepared on a going concern basis in accordance with International Financial Reporting Standards (“IFRS”) as issued by the International Accounting Standards Board (“IASB”). These consolidated financial statements were approved for issuance by the Board of Directors on February 22, 2018. (b) Basis of measurement: These consolidated financial statements are presented in United States dollars and have been prepared on a historical cost basis, except for certain financial assets and liabilities including derivative financial instruments which are stated at fair value. (c) Change in presentation currency: Effective December 31, 2017, the Company changed its presentation currency from the Canadian dollar to the U.S. dollar to more accurately reflect the predominant currency of the Company's revenue, expenses and cash flows after the acquisition of DigitalGlobe, Inc. (“DigitalGlobe”) (note 9) and to enhance comparability with its industry peer group. The change in presentation currency represents a voluntary change that is accounted for retrospectively. The consolidated financial statements of the Company for the periods before December 31, 2017 which were based on a Canadian dollar ("C$") presentation currency have been translated into a U.S. dollar presentation currency as follows: assets and liabilities using the exchange rates prevailing at the balance sheet date; shareholders' equity using the applicable historical exchange rates prevailing at the dates of transactions; and revenue, expenses and cash flows using average exchange rates for the relevant period. The change in the presentation currency has resulted in changes to the previously reported foreign currency translation adjustment account which is included as a component of accumulated other comprehensive income. An additional consolidated balance sheet at January 1, 2016 has been presented as a result of the retrospective change in presentation currency. (d) Operating cycle: The Company defines its operating cycle based on the duration of its contracts with customers and suppliers. The Company enters into a significant number of contracts where the duration is more than twelve months and as a result, certain current assets and liabilities may have terms greater than twelve months. (e) Use of estimates, assumptions and judgments: The preparation of these consolidated financial statements requires management to make estimates, assumptions and judgments that affect the application of accounting policies and the reported amounts of assets, liabilities, revenues and expenses. These estimates, assumptions and judgments are based on historical experience and various factors that management believes to be reasonable under the circumstances. (i) Use of estimates and assumptions: Management reviews estimates and underlying assumptions on an ongoing basis. Revisions to accounting estimates are recognized in the period in which the estimates are revised and in any future periods affected. Actual results may differ from these estimates. The most notable estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities are in the areas of revenue recognition (note 3(d)), recoverability of deferred tax assets and the assessment of the impact of any tax uncertainties in various jurisdictions (note 3(t)), the allocation of purchase price consideration to the fair value of assets acquired and liabilities assumed in business combinations (note 9), and the assessment for impairment of financial and non-financial assets (note 3(p)). Other areas that require the use of estimates and assumptions include estimating useful lives of satellites and other long-lived assets, fair valuation of financial instruments, provisions, pension and post-retirement benefit obligations, and share-based compensation. Additional information on these estimates is included in note 3 and the respective note for each topic. (ii) Judgments: Management uses judgment when applying accounting policies and when making estimates and assumptions as described above. The most significant areas that require judgments relate to the recognition of investment tax credits (note 3(g)), derecognition of financial assets (note 3(i)( i )) and impairment of financial assets (note 3(p)( i )). Other areas that require judgment include determining separately identifiable components of a contract arrangement for revenue recognition, hedge accounting and recognition of contingent liabilities. Additional information on these estimates is included in note 3. |
Significant accounting policies
Significant accounting policies | 12 Months Ended |
Dec. 31, 2017 | |
Significant accounting policies | |
Significant accounting policies | 3. Significant accounting policies: (a) Basis of consolidation: These consolidated financial statements include the accounts of the Company and all subsidiary entities which are controlled by the Company. All intercompany balances and transactions are eliminated on consolidation. (b) Business combinations: Business combinations are accounted for using the acquisition method. The consideration for an acquisition is measured at the fair values of the assets transferred, the liabilities assumed and the equity interests issued at the acquisition date. The excess of the consideration over the fair value of the identifiable net assets acquired is recorded as goodwill. Transaction costs that are incurred in connection with a business combination, other than costs associated with the issuance of debt or equity securities, are expensed as incurred. On an acquisition-by-acquisition basis, any non-controlling interest is measured either at fair value of the non-controlling interest or at the fair value of the proportionate share of the net assets acquired. Contingent consideration is measured at fair value on acquisition date and is included as part of the consideration transferred. The fair value of the contingent consideration liability is re-measured at each reporting date with the corresponding gain or loss being recognized in earnings. (c) Foreign currency: The consolidated financial statements of the Company are presented in United States dollars. (i) Transactions in foreign currency: Each entity within the consolidated group records transactions using its functional currency, being the currency of the primary economic environment in which it operates. Foreign currency transactions are translated into the respective functional currency of each entity using the foreign currency rates prevailing at the date of the transaction. Period end balances of monetary assets and liabilities in foreign currency are translated to the respective functional currencies using period end foreign currency rates. Foreign currency gains and losses arising from settlement of foreign currency transactions are recognized in earnings. (ii) Foreign operations translation: The assets and liabilities of operations with a functional currency other than United States dollars are translated into United States dollars at period end foreign currency rates. Revenues and expenses of such operations are translated into United States dollars at average rates for the period. Foreign currency translation gains and losses are recognized in other comprehensive income. The relevant amount in cumulative foreign currency translation adjustment is reclassified into earnings upon disposition of a foreign operation. (iii) Hedges of net investments in foreign operations: Foreign exchange gains and losses arising from translation of a financial liability and foreign exchange forward contracts designated as hedges of net investments in foreign operations are recognized in other comprehensive income, to the extent that the hedges are effective. To the extent that the hedges are ineffective, the gains and losses are recognized in earnings. When the hedged portion of a net investment is disposed of, the relevant amount accumulated in other comprehensive income is transferred to earnings as part of the gain or loss on disposal. (d) Revenue recognition: Revenue is measured at the fair value of consideration received or receivable, net of discounts and after eliminating intercompany sales. When consideration received from customers includes advance payments that contain a financing element, the Company imputes interest on such advance payments and recognizes such amounts as a component of revenue. The Company’s contracts with customers may include multiple deliverables that fall within one or more of the revenue categories described below. Where revenue arrangements have separately identifiable components and the components are considered to have standalone value to the customer, the consideration received is allocated to each identifiable component and the applicable revenue recognition criteria are applied to each of the components. When separately identifiable components in a revenue arrangement are considered to not have standalone value, the applicable revenue recognition criteria are applied to the arrangement as a whole. In such situations, if the Company incurs contract costs prior to the commencement of the performance period of the contract, the costs are capitalized as deferred contract costs and are generally recognized as expense over the same period as the associated deferred revenue arising from upfront fees under the arrangement. (i) Construction contracts: A construction contract is a contract specifically negotiated for construction of an asset or a group of interrelated assets. Revenue from construction contracts includes initial contract amounts, variations in contract work, claims, incentive payments and the fair value of customer furnished materials. When the outcome of a construction contract can be measured reliably, revenue is recognized using the percentage of completion method based on contract costs incurred relative to total estimated contract costs or units delivered relative to total units, as appropriate in the circumstances. Construction contracts may be segmented into components which are accounted for separately or combined with other contracts to form a single contract for revenue and expense recognition purposes. When the outcome of a construction contract cannot be measured reliably, contract costs incurred are expensed as incurred and revenue is recognized only to the extent that costs are considered likely to be recoverable. If at the time of contract award or at any time during the life of a contract it becomes probable that total contract costs will exceed total contract revenue, the expected loss is recognized immediately in the statement of earnings. Satellite construction contracts may include performance incentives whereby payment for a portion of the purchase price is contingent upon in-orbit performance of the satellite. These performance incentives are structured in two forms. As a warranty payback, the customer pays the entire amount of the performance incentive during the period of the satellite construction and such incentives are subject to refund if satellite performance does not achieve certain predefined operating specifications. As an orbital receivable, the customer makes payment of performance incentives over the in-orbit life of the satellite. Performance incentives, whether warranty payback or orbital receivables, are included in revenue during the construction period based on amounts expected to be received. Orbital receivables are recorded at their fair value as of the launch date and the adjustments to the amount receivable of the discount during the in-orbit period are recorded as orbital income. The percentage of completion method places considerable importance on accurate estimates of the extent of progress towards completion. During the contractual period, revenue and costs may be impacted by estimates of total contract costs, remaining costs to completion, total contract revenues, contract risks and other judgments. Management continually reviews such estimates and adjusts them as necessary. The inception to date impact of changes in estimates of contract revenues or costs to complete is recognized in the period that the change is determined by management. When costs incurred plus recognized profit (less recognized losses) on a construction contract exceeds progress billings, the net amount is recorded as a construction contract asset. Conversely, when progress billings exceed costs incurred plus recognized profit (less recognized losses), the net amount is recorded as a construction contract liability. Construction contracts may have termination and default clauses. If a contract is terminated for convenience by a customer or due to a customer’s default, the company may be entitled to costs incurred plus a reasonable profit. (ii) Service contracts: Service contracts include contracts for rendering of services, including delivery or licensing of satellite imagery and imagery related products. Revenue from rendering of services is recognized by reference to the stage of completion based on services performed to date as a percentage of total services to be performed or on a straight-line basis over the term of the contract if revenue is determined to be earned evenly. The Company has various contracts with government and commercial customers that require the delivery of imagery and the provision of infrastructure support services. If the deliverables do not qualify as separate units of accounting, the Company recognizes the revenue for this single unit of accounting using a proportional performance method over the life of the contract which may coincide with the estimated life of the satellite. If the deliverables qualify as separate units of accounting, each element is accounted for separately and recognized as revenue over the relevant terms of the arrangement or the estimated useful life of the satellite being accessed. Revenue related to satellite access is recognized based on satellite capacity made available to the customer in a particular period compared to the total capacity to be made available over the term of the contract or as minutes are consumed by the customer as appropriate in the circumstances. Revenue from imagery licenses is typically recognized when the customer is able to directly download the imagery or upon delivery. Revenues related to online imagery subscriptions are recognized ratably over the subscription period. Revenue from the sale of certain services that include the supply of processed data or data products is recognized upon delivery. (e) Earnings per common share: Basic earnings per common share is computed by dividing net earnings by the sum of the weighted average number of common shares outstanding during the period plus outstanding deferred share units awards (see note 22(e)) but excluding issued, but unvested, restricted shares. Diluted earnings per common share is computed by adjusting the basic earnings per common share calculation, as described above, for the effects of all potentially dilutive share appreciation rights and restricted stock units (see notes 22(b) and 22(c)). The company calculates the effects of all potentially dilutive share appreciation rights using the treasury stock method unless they are anti-dilutive. Share appreciation rights are dilutive only when the average market value of the Company’s shares during the period are greater than the exercise price of the share appreciation rights. (f) Research and development: Research costs are expensed in the period incurred. Development costs are capitalized and recorded as an intangible asset if technical feasibility has been established and it is considered probable that the Company will generate future economic benefits from the asset created on completion of development. The costs capitalized include materials, direct labour, directly attributable overhead expenditures and borrowing costs on qualifying assets. Other development costs are expensed in the period incurred. (g) Government assistance and investment tax credits: Government assistance includes government grants, below-market rate of interest loans and investment tax credits and is recognized when there is reasonable assurance that the Company will comply with the relevant conditions and that the government assistance will be received. Government assistance that meets the recognition criteria and that relates to current expenses is recorded as a reduction of the related expenses in direct costs, selling, general and administration. Government assistance that meets the recognition criteria and that relates to the acquisition of an asset is recorded as a reduction of the cost of the related asset. If government assistance becomes repayable, the inception to date impact of assistance previously recognized in earnings is reversed immediately in the period that the assistance becomes repayable. The benefit of a government loan at a below-market rate of interest is treated as a government grant, measured as the difference between proceeds received and the fair value of the loan based on prevailing market interest rates. Investment tax credits, whether or not recognized in the financial statements, may be carried forward to reduce future Canadian Federal and Provincial income taxes payable. The Company applies judgment when determining whether the reasonable assurance threshold has been met to recognize investment tax credits in the financial statements. The Company must interpret eligibility requirements in accordance with Canadian income tax laws and must assess whether future taxable income will be available against which the investment tax credits can be utilized. For investment tax credits that have not met the criteria to be recognized in the financial statements, management continually reviews these interpretations and assessments and recognizes the investment tax credits relating to prior period expenses in the period when the reasonable assurance criteria have been met. Any changes in the interpretations and assessments could have an impact on the amount and timing of investment tax credits recognized in the financial statements. (h) Finance income and finance expense: Finance income is comprised of interest income and gains on disposals of available-for-sale assets. Interest income is recognized as it accrues in earnings, using the effective interest method. Finance expense is comprised of borrowing cost on debt, net interest expense on the net liability of defined benefit pension and other post-retirement benefits plans, interest expense on the orbital securitzation liability, and liability to dissenting shareholders, imputed interest on advance payments and other liabilities, and the cost of forward points from foreign exchange forward contracts. All finance costs are recognized in earnings using the effective interest method. Finance costs exclude borrowing costs attributable to the construction of qualifying assets, which are assets that take a substantial period of time to prepare for their intended use. Borrowing costs associated with qualifying assets are added to the cost of the related assets. (i) Financial instruments: Financial assets and financial liabilities are initially measured at fair value and are subsequently re-measured based on their classification as described below. Transaction costs that are directly attributable to the acquisition or issuance of a financial asset or liability, other than financial assets and liabilities classified as at fair value through earnings, are added or deducted from the fair value of the respective financial asset or financial liability on initial recognition. Transaction costs that are directly attributable to the acquisition or issuance of a financial asset or financial liability classified as at fair value through earnings are recognized immediately in earnings. Financial assets and liabilities are offset and the net amount is reported in the balance sheet when there is a legally enforceable right to offset the recognized amounts and there is an intention to settle on a net basis or realize the asset and settle the liability simultaneously. ( i ) Financial assets are classified into the following categories: at fair value through earnings, loans and receivables, and available-for-sale. The classification depends on the nature and purpose of the financial asset and is determined at the time of initial recognition. · Financial assets at fair value through earnings Financial assets are classified as at fair value through earnings when held for trading or if designated into this category. Financial assets classified as financial assets at fair value through earnings include derivative financial instruments that are not included in a qualifying hedging relationship. Financial assets classified as financial assets as at fair value through earnings are measured at fair value with any gains or losses arising on re-measurement recognized in earnings. · Loans and receivables Loans and receivables include cash and cash equivalents, restricted cash, and non-derivative financial assets with fixed or determinable payments that are not quoted in an active market including trade and other receivables, orbital receivables, and notes receivable. Loans and receivables are initially measured at fair value and are subsequently re-measured at amortized cost using the effective interest method, less any impairment losses. · Available-for-sale financial assets Available-for-sale financial assets are non-derivative financial assets that are either designated in this category or not classified into any of the other categories and include short-term and long-term investments. Available-for-sale financial assets are measured at fair value with any gains or losses on re-measurement recognized in other comprehensive income until the financial asset is derecognized or is determined to be permanently impaired, at which time the gain or loss accumulated in equity is transferred to earnings. Investments in equity instruments that are not quoted in an active market and whose fair value cannot be reliably measured are carried at cost. Financial assets are derecognized when the rights to receive cash flows from the assets have expired or have been transferred, either outright or through a qualifying pass-through arrangement, and the Company has transferred substantially all of the risk and rewards of ownership of the asset. When the Company retains substantially all of the risks and rewards of transferred assets, the transferred assets are not derecognized and remain on the consolidated balance sheet. When the Company neither retains nor transfers substantially all risks and rewards of ownership of the assets, the Company derecognizes the assets if control over the assets is relinquished. If the Company retains control over transferred assets, the Company continues to recognize the transferred assets to the extent of its continuing involvement in the assets. Management assesses these criteria using the balance of facts and circumstances of each individual arrangement and applies considerable judgment when making these assessments, particularly when determining whether substantially all the risks and rewards of ownership of the financial assets have been transferred. Any changes to the conclusions of these assessments could have a material impact on the consolidated financial statements. (ii) Financial liabilities: Financial liabilities are classified as either financial liabilities at fair value through earnings or as other financial liabilities. · Financial liabilities at fair value through earnings Financial liabilities are classified at fair value through earnings when held for trading or if designated into this category. Financial liabilities classified as financial liabilities at fair value through earnings include derivative financial instruments that are not included in a qualifying hedging relationship and are measured at fair value with any gains or losses arising on re-measurement recognized in earnings. · Other financial liabilities Other financial liabilities include bank overdraft, trade and other payables, non-trade payables, contingent liabilities, securitization liability, long-term debt and are initially measured at fair value and are subsequently measured at amortized cost using the effective interest method. (iii) Derivative financial instruments and hedging activities: The Company uses derivative financial instruments to manage risk associated with foreign currency rates. Derivative financial instruments are measured at fair value. When derivative financial instruments are designated in a qualifying hedging relationship and hedge accounting is applied, the effectiveness of the hedges is measured at the end of each reporting period and the effective portion of changes in fair value is recognized in other comprehensive income and any ineffective portion is recognized immediately in earnings. For foreign exchange forward contracts used to manage risk associated with foreign currency rates, amounts are transferred from accumulated other comprehensive income to revenue or direct costs, selling, general and administration when the underlying transaction affects earnings. For foreign exchange contracts not in a qualifying hedging relationship, changes in fair value are recognized immediately in earnings as a foreign exchange gain or loss. Hedge accounting is discontinued when the hedging instrument expires or is sold, terminated, exercised or no longer qualifies for hedge accounting. At that time, if the forecasted transaction within a cash flow hedge remains probable, any cumulative gain or loss on the hedging instrument recognized in other comprehensive income is retained in equity until the forecasted transaction occurs. If the forecasted transaction is no longer expected to occur, the net cumulative gain or loss previously recognized in other comprehensive income is transferred to earnings. (iv) Embedded derivatives: The Company has embedded foreign currency derivatives in certain customer and supplier contracts. These derivatives are accounted for as separate instruments and are measured at fair value at each reporting date. Changes in fair value are recognized in earnings as foreign exchange gains or losses. (j) Cash and cash equivalents: Cash and cash equivalents is comprised of cash on hand, cash balances with banks and similar institutions and term deposits redeemable within three months or less from date of acquisition with banks and similar institutions. (k) Investments: (i) Short-term investments: Short-term investments consist of mutual funds and financial instruments purchased with a term to maturity at inception between three months and one year. (ii) Long-term investments: Long-term investments consist of unquoted equity instruments in which the Company does not have significant influence and the fair value of which cannot be reliably measured. (l) Inventories: Inventories are measured at the lower of cost and net realizable value and consist primarily of parts and subassemblies used in the manufacturing of satellites. The cost of inventories is determined on a first-in-first-out basis or weighted average cost basis, depending on the nature of the inventory. Net realizable value is the estimated selling price in the ordinary course of business, less the estimated costs of completion and selling expense. (m) Property, plant and equipment: Property, plant and equipment are measured at cost less accumulated depreciation and accumulated impairment losses. Cost for satellite assets includes amounts related to design, construction, launch and commissioning. Cost for ground system assets includes amounts related to construction and testing. Borrowing costs are capitalized on certain qualifying assets that take a substantial period of time to prepare for their intended use. When the costs of certain components of an item of property, plant and equipment are significant in relation to the total cost of the item and the components have different useful lives, they are accounted for and depreciated separately. Property, plant and equipment under construction are measured at cost less any accumulated impairment losses. Depreciation expense is recognized in earnings on a straight-line basis over the estimated useful life of the related asset to its residual value. Expected useful lives and depreciation methods are reviewed annually. Land is not depreciated. The estimated useful lives are as follows: Estimated useful life Land improvements years Buildings to years Leasehold improvements lesser of useful life or term of lease Equipment: Test and other equipment to years Vehicles to years Thermal vacuum chambers to years Satellites to years Furniture and fixtures to years Computer hardware to years (n) Leased assets: Leased assets for which the Company assumes substantially all the risks and rewards of ownership are classified as finance leases. Upon initial recognition, the leased asset is measured at an amount equal to the lower of its fair value and the present value of the minimum lease payments. The asset is depreciated over the shorter of the lease term or its estimated useful life. All other leases are considered operating leases and the payments, including lease incentives, are recognized in earnings on a straight-line basis over the term of the lease. (o) Intangible assets and goodwill: (i) Intangible assets: Intangible assets with finite lives consist of acquired and internally developed technologies and software, licenses, customer relationships, trademarks, trade names, non-compete agreements, image library, and backlog. Intangible assets with finite lives are amortized on a straight-line basis over their estimated useful lives and are measured at cost less accumulated amortization and accumulated impairment losses. Intangible assets with finite lives are currently amortized over the following periods: Estimated useful life Customer relationships to years Backlog to 5 years Technologies to years Software to years Trade names years Trademarks to years Image library years Licenses years Non-compete agreements 2 years At December 31, 2017 and 2016, the Company did not have any indefinite life intangible assets. (ii) Goodwill: Goodwill is not amortized but is tested for impairment annually or whenever there is an indication of impairment. Goodwill is measured at cost less accumulated impairment losses. (p) Impairment: (i) Financial assets: Financial assets not carried at fair value through earnings are assessed for impairment at each reporting date. A financial asset is impaired if objective evidence indicates that a loss event which negatively affected the estimated future cash flows has occurred after the initial recognition of the asset. Management uses judgment when identifying and assessing objective evidence that may indicate a loss event and when estimating the potential impact on the carrying value of accounts receivable, notes receivable, orbital receivables, and other financial assets. For financial assets measured at amortized cost, the impairment loss is the difference between the carrying amount and the present value of the estimated future cash flows, discounted at the original effective interest rate. If an impairment has occurred, the carrying amount of the asset is reduced, with the amount of the loss recognized in earnings. A permanent impairment loss for an available-for-sale investment is recognized by transferring the cumulative loss previously recognized in other comprehensive income to earnings. (ii) Goodwill and non-financial assets: Goodwill and non-financial assets are tested for impairment annually, or whenever events or changes in circumstances indicate that an asset’s carrying amount may be less than its recoverable amount. Management uses judgment to estimate the inputs to these assessments including cash flow projections, discount rates and tax rates, and any changes to these inputs could have a material impact on the impairment calculation. For impairment testing, non-financial assets that do not generate independent cash flows are grouped together into a cash-generating unit ("CGU"), which represent the level at which largely independent cash flows are generated. Goodwill is allocated to groups of CGUs based on the level at which it is monitored for internal reporting purposes. An impairment loss is recognized in earnings to the extent that the carrying value of an asset, CGU or group of CGUs exceeds its estimated recoverable amount. The recoverable amount of an asset, CGU or group of CGUs is the greater of its value in use and its fair value less cost to sell. Value in use is calculated as the present value of the estimated future cash flows discounted at appropriate discount rates. An impairment loss relating to a specific asset reduces the carrying value of the asset. An impairment loss relating to a CGU or group of CGUs reduces the carrying value of the goodwill allocated to the CGU or group of CGUs, then reduces the carrying value of the other assets of the CGU or group of CGUs on a pro-rata basis. An impairment loss in respect of goodwill is not reversed. A previously recognized impairment loss related to other non-financial assets is assessed at each reporting date for any indications that the loss has decreased or no longer exists. An impairment loss related to other non-financial assets is reversed if there is a subsequent increase in recoverable amount. An impairment loss is reversed only to the extent that the asset’s carrying value does not exceed the carrying value that would have been determined, net of depreciation or amortization, if no impairment loss had been recognized. (q) Provisions: Provisions are recognized if, as a result of a past event, the Company has a present legal or constructive obligation that can be estimated reliably, and it is probable that an outflow of resources will be required to settle the obligation. Provisions are determined by discounting expected future cash outflows at a pre-tax rate that reflects current market assessments of the time value of money and the risks specific to the liability. Management uses judgment to estimate the amount, timing and probability of the liability based on facts known at the reporting date. The unwinding of the discount is recognized as finance expense. (i) Warranty and after-sale service costs: A provision for warranty and after-sale service costs is recognized when the underlying product or service is sold and when the recognition criteria described above have been met. Warranty and after-sale service provisions are based on management’s best estimate of the expected obligation using historical warranty data and experience. Warranty and after-sale service provisions related to products and services delivered under construction contracts are included in the estimated total costs to complete when applying the percentage of completion method of revenue recognition. (ii) Restructuring costs: A provision for restructuring costs is recognized when the Company has approved a detailed and formal restructuring plan, and the restructuring either has commenced or has been announced publicly. Future operating losses are excluded from the provision. (iii) Others: A provision for onerous contracts, excluding construction contracts (see note 3(d)( i )), is recognized when the unavoidable costs of meeting the obligations under the contract exceed the economic benefits expected to be received from the contract. The provision is measured at the present value of the lower of the expected cost of terminating the contracts and the expected net cost of continuing with the contract. A provision for decommissioning liabilities is recognized at the time of asset acquisition. Decommissioning liabilities are added to the carrying value of the related asset and are depreciated over the asset’s estimated useful life. (r) Employee benefits: (i) Defined benefit pension plans and other post-retirement benefit plans: The Company maintains defined benefit plans for some of its employees. The Company’s net obligation in respect of defined benefit plans is calculated separately for each plan by estimating the amount of future benefit that employees have earned in the current and prior periods, discounting that amount and deducting the fair value of any plan assets. The calculation of defined benefit obligations is performed annually by qualified actuaries using the projected unit credit method, which takes into account the expected salary increases as the basis for future benefit increases for the pension plans. The discount rate is the yield at the reporting date on high quality corporate bonds that have maturity dates approximating the terms of the Company’s obligations and that are denominated in the same currency in which the benefits are expected to be paid. Actuarial assumptions for discount rates, expected salary increases and the projected age of employees upon retirement reflect historical experience and the Company’s assessment of future expectations. When the calculation results in a benefit to the Company, the recognized asset is limited to the present value of economic benefits available in the form of any future refunds from the plan or reductions in future contributions to the plan. In order to calculate the present value of econo |
New standards and interpretatio
New standards and interpretations not yet adopted | 12 Months Ended |
Dec. 31, 2017 | |
New standards and interpretations not yet adopted | |
New standards and interpretations not yet adopted | 4. New standards and interpretations not yet adopted: IFRS 15 - Revenue from Contracts with Customers In May 2014, the IASB issued IFRS 15 - Revenue from Contracts with Customers , which supersedes IAS 18 - Revenue , IAS 11 - Construction Contracts and other interpretive guidance associated with revenue recognition. IFRS 15 provides a single, principles-based five-step model to be applied to all contracts with customers to determine how and when an entity should recognize revenue. The standard also provides guidance on whether revenue should be recognized at a point in time or over time as well as requirements for more informative, relevant disclosures. IFRS 15 is effective for annual periods beginning on or after January 1, 2018 with earlier adoption permitted. The Company has established an implementation plan and intends to adopt IFRS 15 in its financial statements for the annual period beginning on January 1, 2018 and apply IFRS 15 retrospectively to prior periods. The Company is continuing to assess the transition impact of adopting IFRS 15 on its consolidated financial statements. This includes finalizing the evaluation of (i) recognition and measurement of all significant construction and service contracts in place, including contracts acquired in the DigitalGlobe acquisition or subsequently entered into by DigitalGlobe entities (note 9); (ii) company policies and business practice; (iii) internal controls; and (iv) significant judgments and estimations required. While the Company continues to assess all potential impacts of the new revenue recognition standard, it currently believes the most significant impact will relate to its method of accounting for contract loss provisions. A contract with a customer will be considered onerous and a loss provision will be recognized only if it becomes probable that the total estimated direct costs of the contract, excluding allocated overheads, exceeds total contract revenues. Currently, the Company recognizes a contract loss provision if it becomes probable that total contract costs, including allocated overheads, exceeds total contract revenues. The impact of this change in accounting policy, when adopted, would decrease the frequency and amount of contract loss provisions recognized. The Company expects that the significant majority of long-term construction and service contracts currently accounted for under the percentage-of-completion method will meet the requirements for revenue recognition over time under IFRS 15, and the Company will continue to apply a costs incurred to expected total cost model. The Company is currently quantifying the transition impact and compiling the disclosures required for transition to IFRS 15. The Company will present its 2018 first quarter financial statements under this new standard. IFRS 9 - Financial Instruments In July 2014, the IASB issued IFRS 9 - Financial Instruments , which replaces the earlier versions of IFRS 9 (2009, 2010, and 2013) and completes the IASB’s project to replace IAS 39 - Financial Instruments: Recognition and Measurement . IFRS 9 includes a logical model for classification and measurement of financial assets; a single, forward-looking ‘expected credit loss’ impairment model and a substantially-reformed approach to hedge accounting to better link the economics of risk management with its accounting treatment. IFRS 9 is effective for annual periods beginning on or after January 1, 2018 and must be applied retrospectively with some exemptions. For hedge accounting, IFRS 9 allows companies to continue to use the existing requirements under IAS 39 rather than adopting the new requirements of IFRS 9 until IASB finalizes its macro hedge accounting project. As permitted, the Company has elected to not adopt the IFRS 9 hedge accounting requirements on January 1, 2018 and will retain the IAS 39 hedge accounting requirements. Other than hedge accounting requirements, the Company will adopt the standard on January 1, 2018 using the modified retrospective application method, under which 2017 comparatives are not restated and a cumulative catch up adjustment is recorded on January 1, 2018, for any differences identified including adjustments to opening retained earnings balances. The Company has analyzed the impact of adopting IFRS 9 and anticipates that there will not be any material changes as a result of adopting this new standard. IFRS 16 - Leases In January 2017, the IASB issued IFRS 16 - Leases , which supersedes IAS 17 - Leases . IFRS 16 establishes principles for the recognition, measurement, presentation and disclosure of leases. The standard establishes a single model for lessees to bring leases on-balance sheet while lessor accounting remains largely unchanged and retains the finance and operating lease distinctions. IFRS 16 is effective for annual periods beginning on or after January 1, 2019 with earlier adoption permitted, but only if also applying IFRS 15 - Revenue from Contracts with Customers . The Company is currently evaluating the impact of IFRS 16 on its financial statements and does not intend to early adopt the standard. Amendments to IFRS 2 - Share-based Payment In June 2017, the IASB issued amendments to IFRS 2 - Share-based Payment , clarifying how to account for certain types of share-based payment transactions. The amendments provide requirements on the accounting for: the effects of vesting and non-vesting conditions on the measurement of cash-settled share-based payments; share-based payment transactions with a net settlement feature for withholding tax obligations; and a modification to the terms and conditions of a share-based payment that changes the classification from cash-settled to equity-settled. The amendments to IFRS 2 are effective prospectively for annual periods beginning on or after January 1, 2018 with earlier adoption permitted. Retrospective or earlier adoption permitted, if information is available without the use of hindsight. The Company intends to adopt the amendments to IFRS 2 in its financial statements for the annual period beginning on January 1, 2018. The Company is currently evaluating the impact of the amendments to IFRS 2 on its financial statements. IFRIC 22 Foreign Currency Transactions and Advance Consideration In December 2017, the IASB issued IFRIC 22 Foreign Currency Transactions and Advance Consideration. The interpretation clarifies which date should be used for translation when accounting for transactions in a foreign currency that include the receipt or payment of advance consideration. IFRIC 22 is effective for annual periods beginning on or after January 1, 2018 with earlier adoption permitted. The Company is currently evaluating the impact of IFRIC 22 on its financial statements. |
Revenue and segmented informati
Revenue and segmented information | 12 Months Ended |
Dec. 31, 2017 | |
Revenue and segmented information | |
Revenue and segmented information | 5. Revenue and segmented information: The Company is organized into market sectors based on its products and services. As a result of the acquisition of DigitalGlobe (note 9) in the fourth quarter of 2017, the Company has reorganized its organizational and operational structure to reflect the manner in which the Chief Operating Decision Maker (“CODM”) now manages the operations and assesses the business performance of the Company. The change in the organizational and operational structure has resulted in the addition of two new segments and a reorganization of our legacy segments that were reported at December 31, 2016. The Company now has three reportable segments: Space Systems, Imagery and Services. Comparative historical segmented information has been restated based on available information. The DigitalGlobe businesses have been split between two of the new segments, Imagery and Services, as appropriate. The Company’s geospatial services businesses, formerly included in the Surveillance and Intelligence segment are now managed within the Imagery and Services segments, as applicable. Our legacy Communication segment and the remainder of our legacy Surveillance and Intelligence operations, excluding the geospatial services businesses, are now combined and managed in a renamed segment, Space Systems, to more accurately reflect the nature of the activity of this segment. The Company’s three reportable segments are now organized as follows: (a) Space Systems: Maxar is a leading supplier of space-based and ground-based infrastructure and information solutions. The Company’s products include communication and imaging satellites, satellite payloads and antenna subsystems, space-based and airborne surveillance solutions, robotic systems and associated ground infrastructure and support services. The Company’s offerings serve multiple markets, primarily for communications and surveillance and intelligence applications. In the communications market, the Company’s solutions provide cost-efficient global delivery of a broad range of services, including television and radio distribution, broadband internet, and mobile communications. In the surveillance and intelligence market, the Company offers end-to-end solutions to monitor changes and activities around the globe to support the operational needs of government agencies, both military and civilian, and commercial customers. The Company also supplies spacecraft and subsystems to the U.S. government and other customers for scientific research and development missions, as well as robotic systems for the space and terrestrial markets. Maxar’s principal customers in the Space Systems segment are government agencies worldwide as well as communication satellite operators and communication satellite manufacturers. (b) Imagery: Maxar is a leading supplier of integrated electro-optical and radar imagery. Sourced from the Company’s own advanced satellite constellation and third-party providers, the Company’s imagery solutions provide customers with accurate and mission-critical information about our changing planet, and support a wide variety of uses, including mission planning, mapping and analysis, environmental monitoring, disaster management, crop management, oil and gas exploration and infrastructure management. Maxar’s principal customers in the Imagery segment are U.S., Canadian and other international government agencies, primarily defense and intelligence, as well as a wide variety of commercial customers in multiple markets. (c) Services: Maxar provides geospatial products and services that combine imagery, analytic expertise and innovative technology to deliver integrated intelligence solutions to customers. The Company provides analytic solutions that accurately document change and enable geospatial modeling and analysis that predict where events will occur to help customers protect lives and make resource allocation decisions. Maxar’s primary customer in the services segment is the U.S. government, but many capabilities also support intelligence requirements for other international governments, global development organizations and commercial customers. Segmented information is prepared using the accounting policies described in note 3, except for the application of hedge accounting on designated hedging relationships that use derivative financial instruments to hedge foreign currency risk in customer and supplier contracts. For segment reporting, hedge accounting is applied to all such hedging relationships even when not qualifying for hedge accounting under IFRS. The Company’s CODM measures the performance of each segment based on revenue, adjusted EBITDA and segment earnings. Adjusted EBITDA is a non-IFRS measure and is defined as earnings before interest, taxes, depreciation and amortization, adjusted for items that management does not consider when evaluating segment performance including foreign exchange gains and losses, adjustments relating to hedge accounting as described above, share-based compensation expense or recovery, and other income or expense. Segment earnings is defined as adjusted EBITDA less depreciation and amortization expense, excluding amortization of acquisition related intangible assets. The following table summarizes the operating performance of the reporting segments: Space Corporate and Year ended December 31, 2017 Systems Imagery Services eliminations Total Revenues: External revenue $ 1,259.6 $ 228.4 $ 143.2 $ — $ 1,631.2 Intersegment eliminations 10.2 1.7 1.4 (13.3) — 1,269.8 230.1 144.6 (13.3) 1,631.2 Segment earnings: Adjusted EBITDA 231.9 147.6 23.4 (24.2) 378.7 Depreciation and amortization 40.6 40.6 5.9 0.6 87.7 191.3 107.0 17.5 (24.8) 291.0 Capital expenditures: Property, plant and equipment 51.4 4.7 2.0 0.2 58.3 Intangible assets 64.3 22.0 0.2 0.2 86.7 115.7 26.7 2.2 0.4 145.0 Space Corporate and Year ended December 31, 2016 Systems Imagery Services eliminations Total Revenues: External revenue $ 1,417.2 $ 41.0 $ 99.3 $ — $ 1,557.5 Intersegment eliminations 3.6 0.8 0.4 (4.8) — 1,420.8 41.8 99.7 (4.8) 1,557.5 Segment earnings: Adjusted EBITDA 246.0 22.4 20.3 (21.1) 267.6 Depreciation and amortization 41.3 0.2 3.4 0.1 45.0 204.7 22.2 16.9 (21.2) 222.6 Capital expenditures: Property, plant and equipment 39.2 0.3 0.9 1.2 41.6 Intangible assets 59.7 — 1.4 0.4 61.5 98.9 0.3 2.3 1.6 103.1 Reconciliation to earnings (loss) before income taxes: For the year ended December 31, 2017 2016 Segment earnings $ 291.0 $ 222.6 Amortization of acquisition related intangible assets 79.4 32.4 Foreign exchange differences (11.5) 2.8 Share-based compensation expense (note 22(f)) 57.9 14.7 Other expense (note 8) 119.4 5.9 Earnings before interest and taxes 45.8 166.8 Finance income (1.3) (0.3) Finance expense 82.5 37.6 Earnings (loss) before income taxes $ (35.4) $ 129.5 The Company’s primary sources of revenue are as follows: For the year ended December 31, 2017 2016 Construction contracts $ 1,183.2 $ 1,342.4 Service contracts 448.0 215.1 $ 1,631.2 $ 1,557.5 Revenue from construction contracts includes orbital income of $34.8 million (2016 - $30.9 million). The aggregate amount of revenue recognized to date less losses recognized to date (or from the date of acquisition) for construction contracts in progress at December 31, 2017 was $2,770.5 million (December 31, 2016 - $2,707.6 million). Advance payments received for construction contracts in progress at December 31, 2017 were $238.8 million (December 31, 2016 - $266.6 million). Retentions in connection with construction contracts at December 31, 2017 were $6.9 million (December 31, 2016 - $7.0 million). The approximate revenue based on geographic location of customers is as follows: For the year ended December 31, 2017 2016 Revenue: United States $ 743.8 $ 447.2 Canada 329.9 424.4 Asia 295.3 311.9 Europe 207.1 284.5 Australia 29.6 29.7 South America 16.7 58.1 Other 8.8 1.7 $ 1,631.2 $ 1,557.5 Revenue from significant customers is as follows: For the year ended December 31, 2017 2016 Commercial: Customer 1 $ 119.9 $ 197.1 Government: Canadian Federal Government and agencies $ 194.3 $ 212.3 U.S. Federal Government and agencies 293.8 97.5 The Company’s non-current non-financial assets, property, plant and equipment, intangible assets and goodwill are geographically located as follows: December 31, December 31, 2017 2016 United States $ 5,103.5 $ 1,268.2 Canada 142.7 126.9 Europe 0.2 0.2 $ 5,246.4 $ 1,395.3 |
Expenses by nature
Expenses by nature | 12 Months Ended |
Dec. 31, 2017 | |
Expenses by nature | |
Expenses by nature | 6. Expenses by nature: The following table classifies the Company’s operating expenses by nature: For the year ended December 31, 2017 2016 Employee salaries and benefits $ 595.4 $ 549.2 Costs related to defined benefit plans (note 18(b)&(c)) (19.3) 0.3 Costs related to defined contribution plans (note 18(f)) 16.7 14.5 Inventories used 103.5 128.8 Subcontractor costs relating to construction and service contracts 342.8 380.8 Materials, equipment, professional fees, travel and other 215.4 215.5 Direct costs, selling, general and administration 1,254.5 1,289.1 Depreciation and amortization 167.1 77.4 Foreign exchange loss (gain) (13.5) 3.6 Share-based compensation expense (note 22(f)) 57.9 14.7 Other expense (note 8) 119.4 5.9 $ 1,585.4 $ 1,390.7 |
Finance expense
Finance expense | 12 Months Ended |
Dec. 31, 2017 | |
Finance expense | |
Finance expense | 7. Finance expense: For the year ended December 31, 2017 2016 Finance expense: Interest expense on long-term debt $ 57.7 $ 26.2 Interest expense on defined benefit pension and other post-retirement benefit obligations (note 18(b)&(c)) 9.2 9.5 Interest expense on orbital securitization liability (note 14) 7.8 1.6 Interest expense on advance payments 7.9 — Capitalization of borrowing costs (notes 16(a)) (4.9) (2.8) Imputed interest and other 4.8 3.1 $ 82.5 $ 37.6 |
Other expense
Other expense | 12 Months Ended |
Dec. 31, 2017 | |
Other expense | |
Other expense | 8. Other expense: The components of other expense are as follows: For the year ended December 31, 2017 2016 Acquisition related expense (note 9) $ 59.9 $ — Restructuring and enterprise improvement costs 36.5 3.6 Loss from early extinguishment of debt 23.0 — Executive compensation settlement — 2.3 $ 119.4 $ 5.9 For the year ended December 31, 2017, the Company incurred costs of $59.9 million (2016 - $nil) for investment banking fees, legal, tax, consulting and other acquisition and integration costs related to the DigitalGlobe acquisition (note 9). For the year ended December 31, 2017, the Company incurred restructuring and enterprise improvement costs of $36.5 million (2016 - $3.6 million) relating to the DigitalGlobe acquisition and ongoing restructuring programs. A provision of $2.3 million has been recognized on the balance sheet for these costs as at December 31, 2017 (December 31, 2016 - $1.5 million). (a) Subsequent to closing the DigitalGlobe acquisition, the Company incurred employee severance and retention related costs of $13.1 million and building related restructuring costs of $6.0 million in the fourth quarter of 2017. The severance costs were incurred upon employment termination of several DigitalGlobe executives who became redundant after the merger and the retention costs were incurred to entice certain DigitalGlobe employees to remain with the Company for a specified period of time. The building related restructuring costs related to lease termination payments and a provision for surplus lease space no longer required by the Company for its future operations. (b) In response to changes in the geostationary communications satellite market, the Company commenced a restructuring project to reduce headcount at its Palo Alto manufacturing facility and to implement enterprise improvement initiatives at Palo Alto and other operational locations aimed at reducing overhead costs, increasing supply chain value and increasing efficiency of production processes. In connection with the implementation of these initiatives, the Company incurred restructuring and enterprise improvement costs of $17.4 million in 2017 compared to $3.6 million in 2016. In 2017, costs included employee severance of $11.9 million (2016 - $3.6 million) and consulting fees of $5.5 million (2016 - nil). On October 5, 2017, concurrent with closing the acquisition of DigitalGlobe, the Company refinanced its existing $700.0 million syndicated credit facility and its 2024 Term Notes and incurred a loss from early extinguishment of debt of $23.0 million. The loss was comprised of a make-whole premium to terminate the 2024 Term Notes of $20.0 million and a write-off of the unamortized balance of capitalized financing fees of $3.0 million relating to both the syndicated credit facility and the 2024 Term Notes. In the second quarter of 2016, the Company recognized an executive compensation settlement of $14.2 million to a related party. Of that amount, $11.9 million was recorded as share-based compensation expense (note 22(f)) and $2.3 million was recorded as other expense. |
Business combination
Business combination | 12 Months Ended |
Dec. 31, 2017 | |
Business combination | |
Business combination | 9. On October 5, 2017, the Company completed the acquisition of DigitalGlobe for a combination of equity and cash consideration totaling $2,328.2 million. Headquartered in Westminster, Colorado, DigitalGlobe is a global leading provider of high-resolution Earth imagery, data and analysis. Under the terms of the merger agreement with DigitalGlobe, each DigitalGlobe common share was exchanged for $17.50 in cash and 0.3132 common shares of the Company. The fair value of the common shares issued as consideration was based on the closing price of a Maxar share on the Toronto Stock Exchange on October 4, 2017 of $54.57 per share (C$68.10 per share). Share issuance costs of $2.5 million which were directly attributable to the issue of the shares have been netted against share capital. In order to finance the acquisition, the Company entered into a $3.75 billion credit facility (note 19). On October 5, 2017, the Company made an initial draw under the new credit facility of $3,096.7 million, net of debt issuance costs of $63.2 million, and used this amount, along with DigitalGlobe cash on hand, to acquire DigitalGlobe’s equity and pay out DigitalGlobe’s equity award holders ($1,155.5 million), to refinance DigitalGlobe’s debt ($1,266.3 million), to refinance the Company’s debt ($741.5 million) and to pay transaction fees and expenses of both the Company and DigitalGlobe, fund working capital, and for general corporate purposes. As part of the merger agreement, DigitalGlobe’s share-based awards were converted into the right to receive a combination of cash and common shares of the Company, except for the stock component of certain unvested time-based awards that were replaced by equivalent share-based awards of the Company. The fair value of the replacement awards attributable to the pre-acquisition and post-acquisition service periods were $15.8 million and $13.9 million, respectively. The pre-acquisition amount has been included as part of the purchase consideration and the post-acquisition amount will be expensed over the remaining vesting period of the replacement awards. In addition, certain unvested performance-based DigitalGlobe share-based awards and the cash component of the unvested time-based awards became fully vested and were paid the merger consideration on the closing of the transaction. Since this accelerated vesting was triggered by the actions of the Company, the component of the fair value of the consideration attributable to the accelerated share-based awards relating to post-acquisition services of $33.1 million has been recognized as share-based compensation expense in the Company’s consolidated statement of earnings. The component relating to pre-acquisition services has been included as part of the purchase consideration. The merger consideration paid out on the closing of the transaction excluded amounts due to 80,000 dissenting DigitalGlobe preferred shareholders and 352,225 dissenting common shareholders. Subsequent to October 5, 2017, 90,000 common shareholders withdrew their dissent, and will be paid merger consideration with total value of $3.1 million in the first quarter of 2018. As at December 31, 2017, the estimated obligation owing to the remaining dissenting shareholders of $116.7 million, including interest accrued at the Federal Reserve discount rate plus 5% compounded quarterly, has been recorded as a non-current liability on the consolidated balance sheet (note 17). In the period October 5, 2017 to December 31, 2017, DigitalGlobe contributed revenue of $221.6 million and earnings before income taxes of $7.6 million. If the acquisition had occurred on January 1, 2017, management estimates that unaudited consolidated revenue would have been $2,307.9 million and unaudited consolidated net earnings would have been $41.7 million for the year ended December 31, 2017. In determining these amounts, management has conformed DigitalGlobe’s historical financial results originally prepared under US Generally Accepted Accounting Principles to IFRS and has assumed that the fair value adjustments, determined provisionally, that arose on the date of acquisition would have been the same if the acquisition had occurred on January 1, 2017. The following table summarizes the fair value of the consideration transferred and the preliminary estimated fair values of the major classes of assets acquired and liabilities assumed at the acquisition date. The Company may adjust the preliminary purchase price allocation, as necessary, up to one year after the acquisition closing date as new information is obtained about facts and circumstances that existed as of the closing date. The fair value of satellite assets and intangible assets acquired has been determined using valuation techniques that require estimation of replacement costs, future net cash flows and discount rates. Changes in estimates and assumptions used could have a material impact on the amount of goodwill recorded and the amount of depreciation and amortization expense recognized in earnings for depreciable assets in future periods. October 5, 2017 Cash paid $ 1,131.0 Shares issued 1,063.4 Merger consideration to be settled 3.1 Liability to dissenting shareholders 114.9 Issuance of replacement equity-settled awards 15.8 Purchase consideration 2,328.2 Assets Cash and cash equivalents $ 170.6 Trade and other receivables 142.2 Financial assets, other 13.4 Current tax assets 0.1 Non-financial assets 93.4 Property, plant and equipment 695.8 Definite life intangible assets 1,439.8 2,555.3 Liabilities Trade and other payables $ 83.2 Current tax liabilities 2.7 Provisions 1.4 Employee benefits 29.1 Non-financial liabilities 354.0 Deferred tax liabilities 149.6 Long-term debt 1,276.0 1,896.0 Fair value of net identifiable assets acquired 659.3 Goodwill $ 1,668.9 Trade and other receivables comprise gross amounts due of $144.1 million, of which $1.9 million was estimated to be uncollectable at the acquisition date. Intangible assets have been determined on a provisional basis and relate primarily to customer relationships, backlog, technologies, trademarks, non-compete agreements, licenses, and an image library. The goodwill is attributable mainly to the human capital of DigitalGlobe’s workforce, market presence and the synergies expected to be achieved from integrating DigitalGlobe with the Company’s existing capabilities. No goodwill is deductible for income tax purposes. During the year ended December 31, 2017, the Company incurred costs of $59.9 million for investment banking fees, legal, tax, consulting and other acquisition and integration costs related to the DigitalGlobe transaction. These costs have been recognized in other expense in the consolidated statement of earnings and in operating cash flows in the consolidated statement of cash flows. |
Trade and other receivables
Trade and other receivables | 12 Months Ended |
Dec. 31, 2017 | |
Trade and other receivables | |
Trade and other receivables | 10. Trade and other receivables: December 31, December 31, 2017 2016 Trade accounts receivable, net $ 273.1 $ 175.9 Orbital receivables, current portion (note 14) 30.0 27.1 Other 45.1 28.1 $ 348.2 $ 231.1 |
Financial assets and liabilitie
Financial assets and liabilities, other | 12 Months Ended |
Dec. 31, 2017 | |
Financial assets and liabilities, other | |
Financial assets and liabilities, other | 11. Financial assets and liabilities, other: (a) Financial assets, other: December 31, December 31, 2017 2016 Restricted cash $ 23.0 $ 25.2 Long-term investments 27.5 24.4 Short-term investments 0.8 5.8 Notes receivable 20.3 52.4 Derivative financial instruments 12.5 17.8 84.1 125.6 Current portion (16.3) (64.7) $ 67.8 $ 60.9 (b) Financial liabilities, other: December 31, December 31, 2017 2016 Non-trade payables $ 23.8 $ 18.0 Derivative financial instruments 8.9 14.7 32.7 32.7 Current portion (18.9) (17.3) $ 13.8 $ 15.4 |
Maturities of certain current a
Maturities of certain current assets and liabilities | 12 Months Ended |
Dec. 31, 2017 | |
Maturities of certain current assets and liabilities | |
Maturities of certain current assets and liabilities | 12. Maturities of certain current assets and liabilities: The Company’s current assets and current liabilities include all assets and liabilities that mature within the Company’s operating cycle. The table below gives the maturity profile of certain current assets and current liabilities where the maturities extend beyond twelve months. Due within Due after December 31, 2017 one year one year Total Construction contract assets $ 104.5 $ 23.8 $ 128.3 Inventories 52.0 44.5 96.5 Non-financial assets 110.9 14.3 125.2 Non-financial liabilities 209.2 — 209.2 Construction contract liabilities 243.3 15.6 258.9 Due within Due after December 31, 2016 one year one year Total Construction contract assets $ 85.3 $ — $ 85.3 Inventories 64.1 33.5 97.6 Non-financial assets 100.5 23.7 124.2 Non-financial liabilities 12.9 — 12.9 Construction contract liabilities 282.4 10.6 293.0 |
Non-financial assets and liabil
Non-financial assets and liabilities | 12 Months Ended |
Dec. 31, 2017 | |
Non-financial assets and liabilities | |
Non-financial assets and liabilities | 13. Non-financial assets and liabilities: (a) Non-financial assets: December 31, December 31, 2017 2016 Advances to suppliers $ 81.5 $ 110.3 Prepaid expenses 60.0 18.1 Deferred contract costs 20.0 — Equity investment in joint ventures 27.4 — 188.9 128.4 Current portion (125.2) (124.2) $ 63.7 $ 4.2 (b) Non-financial liabilities: December 31, December 31, 2017 2016 Deferred revenue $ 340.9 $ 11.9 Lease inducements 35.4 4.3 Lease liability acquired 6.7 9.9 Other 2.6 2.6 385.6 28.7 Current portion (209.2) (12.9) $ 176.4 $ 15.8 |
Orbital receivables
Orbital receivables | 12 Months Ended |
Dec. 31, 2017 | |
Orbital receivables | |
Orbital receivables | 14. Orbital receivables: Orbital receivables relate to performance incentives due under certain satellite construction contracts that are paid over the in-orbit life of the satellite. Orbital receivables are recognized as revenue on a percentage of completion basis during the construction period and are discounted to present value using discount rates ranging from 6% - 10% (2016 - 6% - 10%). The expected timing of billing and collection of orbital receivables relating to launched and unlaunched satellites is shown in the following table: Carrying value Launched Unlaunched Total 2018 $ 30.0 $ — $ 30.0 2019 29.1 0.3 29.4 2020 35.7 1.7 37.4 2021 38.8 3.7 42.5 2022 41.8 5.9 47.7 Thereafter 219.2 48.0 267.2 Orbital receivables 394.6 59.6 454.2 Current portion (note 10) (30.0) — (30.0) December 31, 2017 $ 364.6 $ 59.6 $ 424.2 Orbital receivables $ 367.9 $ 77.6 $ 445.5 Current portion (note 10) (27.1) — (27.1) December 31, 2016 $ 340.8 $ 77.6 $ 418.4 The expected timing of total contractual cash flows for all launched and unlaunched satellites including principal and interest payments is as follows: Total 2018 $ 57.8 2019 60.2 2020 65.8 2021 66.6 2022 71.3 Thereafter 466.7 $ 788.4 During the year ended December 31, 2016, the Company signed a $400.0 million revolving securitization facility agreement with an international financial institution. Under the terms of the agreement, the Company may offer to sell eligible orbital receivables from time to time with terms of seven years or less of cash flows discounted to face value using prevailing market rates. On September 30, 2016, as an initial drawdown under the facility, the Company sold orbital receivables with book value of $61.5 million for net proceeds of $69.2 million consisting of gross proceeds of $72.3 million less setup and transaction fees of $3.1 million. On December 15, 2016, the Company made a second drawdown under the facility and sold orbital receivables with book value of $50.6 million for net proceeds of $53.9 million consisting of gross proceeds of $54.6 million less transaction fees of $0.6 million. The orbital receivables that were securitized remain recognized on the balance sheet as the Company continues to service the orbital receivables and management has concluded, on the balance of facts and circumstances of the arrangement, that the Company has retained substantially all of the risks and rewards of ownership. The net proceeds received were initially recognized as a securitization liability on the balance sheet and are being subsequently measured at amortized cost using the effective interest rate method. As at December 31, 2017, the unamortized balance is $106.3 million. The securitized orbital receivables and securitization liability will be drawn down as payments are received from the customers and passed on to the international financial institution (note 23(d)). The Company continues to recognize orbital income on the orbital receivables that are subject to the securitization transactions. |
Property, plant and equipment
Property, plant and equipment | 12 Months Ended |
Dec. 31, 2017 | |
Property, plant and equipment | |
Property, plant and equipment | 15. Property, plant and equipment: Land and Leasehold Furniture Computer buildings improvements Equipment Satellites and fixtures hardware Total Cost Balance as at December 31, 2015 $ 191.0 $ 31.7 $ 232.2 $ — $ 7.4 $ 43.9 $ 506.2 Additions 3.0 15.2 15.3 — 1.9 6.2 41.6 Disposals — (0.2) (0.6) — (0.1) (1.8) (2.7) Foreign currency translation 0.4 0.5 0.7 — 0.2 0.9 2.7 Balance as at December 31, 2016 194.4 47.2 247.6 — 9.4 49.2 547.8 Acquired from business combination (note 9) 0.5 42.0 35.0 577.9 1.2 39.2 695.8 Additions 2.3 15.7 24.9 6.3 0.3 8.8 58.3 Disposals — (0.1) (0.3) — — (1.7) (2.1) Foreign currency translation 1.0 1.0 1.4 — 0.3 2.8 6.5 Balance as at December 31, 2017 $ 198.2 $ 105.8 $ 308.6 $ 584.2 $ 11.2 $ 98.3 $ 1,306.3 Accumulated depreciation Balance as at December 31, 2015 $ 11.1 $ 17.2 $ 89.0 $ — $ 5.1 $ 32.5 $ 154.9 Depreciation expense 4.0 3.2 21.8 — 0.7 4.3 34.0 Disposals — (0.2) (0.5) — (0.1) (1.8) (2.6) Foreign currency translation 0.1 0.2 0.4 — 0.1 0.7 1.5 Balance as at December 31, 2016 15.2 20.4 110.7 — 5.8 35.7 187.8 Depreciation expense 4.3 4.2 22.9 21.8 0.8 7.1 61.1 Disposals — (0.1) (0.2) — — (1.7) (2.0) Foreign currency translation 0.3 0.7 1.4 — 0.2 1.9 4.5 Balance as at December 31, 2017 $ 19.8 $ 25.2 $ 134.8 $ 21.8 $ 6.8 $ 43.0 $ 251.4 Net book value December 31, 2017 $ 178.4 $ 80.6 $ 173.8 $ 562.4 $ 4.4 $ 55.3 $ 1,054.9 December 31, 2016 $ 179.2 $ 26.8 $ 136.9 $ — $ 3.6 $ 13.5 $ 360.0 Property, plant and equipment includes $119.6 million (December 31, 2016 - $43.6 million) of expenditures for property under construction. The net book value of assets under finance leases are as follows: December 31, December 31, 2017 2016 Computer hardware $ 5.2 $ 4.6 Furniture and fixtures 7.2 0.1 $ 12.4 $ 4.7 Satellite constellation At December 31, 2017, the Company operated a constellation of five in-orbit and fully commissioned satellites and had one satellite constellation under construction. The satellites were acquired in the DigitalGlobe acquisition (note 9) and were initially recognized at fair value as of the acquisition date of October 5, 2017 using a replacement cost approach. The net book value of each satellite is as follows: Satellites Satellites under As at December 31, 2017 in-orbit construction Total Cost $ 569.0 $ 15.2 $ 584.2 Accumulated depreciation (21.8) — (21.8) Net book value $ 547.2 $ 15.2 $ 562.4 |
Intangible assets and goodwill
Intangible assets and goodwill | 12 Months Ended |
Dec. 31, 2017 | |
Intangible assets and goodwill | |
Intangible assets and goodwill | 16. Intangible assets and goodwill: (a) Finite life intangible assets are as follows: Technologies, including Trademarks Customer development and relationships Backlog in-process Software trade names Other(1) Total Cost Balance as at December 31, 2015 $ 13.9 $ — $ 251.2 $ 110.1 $ 67.4 $ 9.0 $ 451.6 Purchase of intangible assets — — — 12.3 — — 12.3 Development of intangible assets — — 49.2 — — — 49.2 Disposals — — (1.2) (0.5) — — (1.7) Foreign currency translation — — — 0.4 — 0.2 0.6 Balance as at December 31, 2016 13.9 — 299.2 122.3 67.4 9.2 512.0 Acquired from business combination (note 9) 608.2 331.0 317.8 46.0 36.8 100.0 1,439.8 Purchase of intangible assets — — — 30.7 — — 30.7 Development of intangible assets — — 56.0 — — — 56.0 Disposals — — — (0.2) — — (0.2) Foreign currency translation 0.1 — — 2.5 — 0.5 3.1 Balance as at December 31, 2017 $ 622.2 $ 331.0 $ 673.0 $ 201.3 $ 104.2 $ 109.7 $ 2,041.4 Accumulated amortization Balance as at December 31, 2015 $ 3.7 $ — $ 61.3 $ 55.8 $ 10.7 $ 6.7 $ 138.2 Amortization Expense 1.1 — 24.0 14.3 3.4 0.7 43.5 Disposals — — (1.3) (0.5) — — (1.8) Foreign currency translation — — — 0.4 — 0.1 0.5 Balance as at December 31, 2016 4.8 — 84.0 70.0 14.1 7.5 180.4 Amortization expense 11.5 23.3 39.1 17.0 4.3 10.8 106.0 Disposals — — — (0.2) — — (0.2) Foreign currency translation 0.1 — — 1.3 — 0.4 1.8 Balance as at December 31, 2017 $ 16.4 $ 23.3 $ 123.1 $ 88.1 $ 18.4 $ 18.7 $ 288.0 Net book value December 31, 2017 $ 605.8 $ 307.7 $ 549.9 $ 113.2 $ 85.8 $ 91.0 $ 1,753.4 December 31, 2016 $ 9.1 $ — $ 215.2 $ 52.3 $ 53.3 $ 1.7 $ 331.6 (1) Other intangible assets is comprised of the following finite life intangible assets: licenses, image library and non-compete agreements. Borrowing costs of $4.9 million (2016 - $2.8 million) were capitalized as development in-process intangible assets during the year. The capitalization rate used to determine the amount of borrowing costs eligible for capitalization ranged from 3.4% - 4.6% (2016 - 3.3% - 3.8%). For the year ended December 31, 2017, the Company expensed research and non-capitalizable development costs of $109.4 million(2016 - $95.4 million) in direct costs, selling, general and administration. (b) Goodwill as at December 31, 2017 is as follows: Space Systems Imagery Services Total Balance as at December 31, 2015 $ 622.8 $ 26.8 $ 47.4 $ 697.0 Foreign currency translation 2.3 0.2 — 2.5 Balance as at December 31, 2016 625.1 27.0 47.4 699.5 Goodwill on acquisition of DigitalGlobe (note 9) 142.9 1,399.8 126.2 1,668.9 Foreign currency translation 5.6 0.4 — 6.0 Balance as at December 31, 2017 $ 773.6 $ 1,427.2 $ 173.6 $ 2,374.4 (c) Goodwill impairment: As a result of changes to the Company's operating segments (see note 5), the Company was required to reassess its cash-generating units (CGU's) and the level at which goodwill is monitored for impairment testing purposes. The Company determined that it will perform goodwill impairment testing based on three groups of CGU's representing its three operating segments as this is the lowest level at which management monitors goodwill. Goodwill has been reallocated to the three operating segments based on a relative fair value methodology. As a result, goodwill arising on the acquisition of DigitalGlobe of $1,668.9 million has been allocated to the Imagery segment ($1,399.8 million), Services segment ($126.2 million) and Space Systems segment ($142.9 million) based on the results of a preliminary purchase price allocation. The goodwill arising from the DigitalGlobe acquisition that has been allocated to the Space Systems segment relates to the fair value of revenue and cost synergies that are expected to benefit Space Systems operations. A portion of the goodwill related to the former Surveillance and Intelligence segment of approximately $16.5 million has been reallocated to the Imagery and Services segments based on the relative fair value of the business units transferred. The Company performs a goodwill impairment test annually and whenever there is an indication of impairment. In 2017, the Company changed the timing of its annual goodwill impairment test to the fourth quarter as a result of the reallocation of its operating segments following the acquisition of DigitalGlobe and to better align with its revised internal financial budgeting cycle. The Company previously performed its goodwill impairment test annually on September 30. In 2017, the Company performed a qualitative assessment on September 30 and no indicators of impairment were noted. As part of the reallocation of goodwill due to the change in the composition of our operating segments, the Company performed an impairment test in the fourth quarter of 2017 both before and after the reallocation. No impairment of goodwill was identified as a result of the Company’s most recent impairment tests. The key assumptions used in performing the impairment tests are as follows: Perpetual Segment Valuation method Discount rate growth rate Space Systems Value in use 7.5 % 2.0 % Imagery Value in use 10.3 % 2.0 % Services Value in use 10.3 % 3.0 % · Recoverable amount: Management’s past experience and future expectations of the business performance are used to make a best estimate of the expected revenue, earnings before interest, taxes, depreciation and amortization, and operating cash flows for a five year period. · Discount rate: The discount rate applied is a pre-tax rate that reflects the time value of money and risk associated with the business. · Perpetual growth rate: The perpetual growth rate is management’s current assessment of the long-term growth prospect of the Company in the jurisdictions in which it operates. · Sensitivity analysis: Management performs sensitivity analysis on the key assumptions. Sensitivity analysis indicates reasonable changes to key assumptions will not result in an impairment loss. |
Provisions
Provisions | 12 Months Ended |
Dec. 31, 2017 | |
Provisions | |
Provisions | 17. Provisions: Warranty Liability to and after- Restructuring dissenting sale service (a) costs (b) shareholders (c) Others (d) Total Balance as at December 31, 2015 $ 28.7 $ 6.4 $ — $ 3.0 $ 38.1 Provisions made 6.8 3.7 — — 10.5 Provisions used (2.1) (8.5) — (0.6) (11.2) Provisions reversed — (0.1) — — (0.1) Unwinding of discount 0.4 — — 0.2 0.6 Foreign currency translation — — — — — Balance as at December 31, 2016 $ 33.8 $ 1.5 $ — $ 2.6 $ 37.9 Provisions made 7.2 13.7 118.3 4.6 143.8 Provisions acquired — — — 1.4 1.4 Provisions used (2.0) (12.7) — (0.9) (15.6) Provisions reversed — (0.2) — — (0.2) Unwinding of discount 0.4 — — 0.1 0.5 Foreign currency translation — — — 0.2 0.2 Balance as at December 31, 2017 $ 39.4 $ 2.3 $ 118.3 $ 8.0 $ 168.0 December 31, 2017: Current $ 3.6 $ 2.3 $ 1.6 $ 1.2 $ 8.7 Non-current 35.8 — 116.7 6.8 159.3 $ 39.4 $ 2.3 $ 118.3 $ 8.0 $ 168.0 December 31, 2016: Current $ 3.2 $ 1.5 $ — $ — $ 4.7 Non-current 30.6 — — 2.6 33.2 $ 33.8 $ 1.5 $ — $ 2.6 $ 37.9 (a) Warranty and after-sale service provisions relate to obligations under commercial satellite construction contracts. (b) Restructuring provisions relate to costs associated with enterprise improvement initiatives for satellite manufacturing operations. (c) Liability to dissenting shareholders is related to the estimated amount owed to dissenting shareholders, including those shareholders who subsequently withdrew their dissent, of the DigitalGlobe transaction including interest (see notes 9&27(d)). (d) Other provisions relate to obligations under premise leases and restoration costs for premise leases with terms that expire between 2019 and 2023. |
Employee benefits
Employee benefits | 12 Months Ended |
Dec. 31, 2017 | |
Employee benefits | |
Employee benefits | 18. Employee benefits: (a) Employee benefit liabilities: December 31, December 31, 2017 2016 Salary and benefits payable $ 112.7 $ 80.7 Share-based payment plans 13.7 5.3 Pension and other post-retirement benefits 215.1 241.5 Employee benefits 341.5 327.5 Current portion (123.9) (89.4) $ 217.6 $ 238.1 (b) Pension plans: The Company maintains various pension plans covering a portion of its employees. The defined benefit plans provide pension benefits based on various factors including earnings and length of service. The majority of the plans are funded and the Company’s funding requirements are based on each of the plans’ actuarial measurement framework as established by the plan agreements or applicable laws. Employees are required to contribute to some of the funded plans. The total estimated contributions expected to be paid to the plans in the year ending December 31, 2018 are $16.2 million. The funded plans’ assets are legally separated from the Company and are held by an independent trustee. The trustee is responsible for ensuring that the funds are protected as per applicable laws. Movement in net defined benefit liability: Defined benefit Fair value Net defined benefit obligation of plan assets liability (asset) 2017 2016 2017 2016 2017 2016 Defined benefit obligation as at January 1, $ 614.4 $ 626.6 $ (437.3) $ (457.9) $ 177.1 $ 168.7 Included in earnings: Current service cost 6.0 6.0 — — 6.0 6.0 Past service costs 0.1 0.1 — — 0.1 0.1 Liabilities extinguished/ assets distributed on settlement — (28.5) — 23.7 — (4.8) Interest cost (income) 23.3 25.9 (16.4) (19.0) 6.9 6.9 29.4 3.5 (16.4) 4.7 13.0 8.2 Included in other comprehensive income: Actuarial loss (gain) arising from: - financial assumptions 36.5 28.6 — — 36.5 28.6 - demographic assumptions (4.6) (9.3) — — (4.6) (9.3) - experience adjustment 6.0 (2.5) — — 6.0 (2.5) Return on plan assets excluding interest income — — (42.1) (6.8) (42.1) (6.8) Foreign exchange adjustment 5.2 2.0 (5.4) (2.2) (0.2) (0.2) 43.1 18.8 (47.5) (9.0) (4.4) 9.8 Other: Employer contributions — — (9.3) (9.6) (9.3) (9.6) Plan participant contributions 0.4 0.4 (0.4) (0.4) — — Benefit payments (32.5) (34.9) 32.5 34.9 — — (32.1) (34.5) 22.8 24.9 (9.3) (9.6) Defined benefit obligation as at December 31, $ 654.8 $ 614.4 $ (478.4) $ (437.3) $ 176.4 $ 177.1 In the fourth quarter of 2016, the Company amended a defined benefit pension plan at one of its operating divisions by offering eligible terminated vested participants the option to select a lump-sum payout instead of scheduled payments over the retirement period. As at December 31, 2016, 44% of eligible participants selected the option and accordingly, the Company recognized a gain on settlement of $4.8 million immediately in earnings in the fourth quarter of 2016, with an offsetting reduction to net defined employee benefit liabilities. These measurements were based on actuarial assumptions in effect as of December 31, 2016, including an updated discount rate of 3.9%. The expense is recognized in direct costs, selling, general and administration in the statement of earnings. The expense is recognized in direct costs, selling, general and administration in the statement of earnings. Plan assets comprise: December 31, December 31, 2017 2016 Cash and cash equivalents $ 6.0 $ 3.4 Canadian equity securities 18.8 18.0 U.S. equity securities 13.6 13.0 Global equity securities 0.5 0.4 Government bonds 7.8 6.7 Corporate bonds 6.5 7.0 Pooled fund units: Equity funds 264.4 221.9 Fixed income funds 152.9 159.2 Real estate funds 7.9 7.7 Total pension plan assets $ 478.4 $ 437.3 (c) Other post-retirement plans: The Company also provides for other post-retirement benefits, comprised of extended health benefits, dental care and life insurance covering a portion of its employees in Canada and the United States. The cost of these benefits is funded primarily out of general revenues. The plan assets for the funded plan consist primarily of money market instruments. The total estimated contributions expected to be paid to the plans, including the net benefit payments to be made in respect to unfunded plans, for the year ending December 31, 2018 are $1.9 million. Movement in net defined benefit liability: Defined benefit Fair value Net defined benefit obligation of plan assets liability (asset) 2017 2016 2017 2016 2017 2016 Defined benefit obligation as at January 1, $ 64.4 $ 65.7 $ — $ (0.4) $ 64.4 $ 65.3 Included in earnings: Current service cost 0.4 0.9 — — 0.4 0.9 Past service costs (25.8) (1.9) — — (25.8) (1.9) Interest cost (income) 2.3 2.6 — — 2.3 2.6 (23.1) 1.6 — — (23.1) 1.6 Included in other comprehensive income: Actuarial loss (gain) arising from: - financial assumptions 1.5 1.5 — — 1.5 1.5 - demographic assumptions (0.2) 1.7 — — (0.2) 1.7 - experience adjustment (3.2) (4.5) — — (3.2) (4.5) Return on plan assets excluding interest income — — — — — — Foreign exchange adjustment 1.4 0.6 — — 1.4 0.6 (0.5) (0.7) — — (0.5) (0.7) Other: Employer contributions — — (2.1) (2.1) (2.1) (2.1) Plan participant contributions 0.2 0.3 (0.2) — — 0.3 Benefit payments (2.3) (2.5) 2.3 2.5 — — (2.1) (2.2) — 0.4 (2.1) (1.8) Defined benefit obligation as at December 31, $ 38.7 $ 64.4 $ — $ — $ 38.7 $ 64.4 In the fourth quarter of 2017, the Company amended a defined benefit post-retirement plan at one of its operating divisions by eliminating employer paid subsidies toward retiree medical benefits as of December 31, 2017. The Company recognized a gain on settlement of $24.6 million immediately in earnings in the fourth quarter of 2017, with an offsetting reduction to net defined employee benefit liabilities. These measurements were based on actuarial assumptions in effect as of December 31, 2017, including an updated discount rate of 3.42%. The expense is recognized in direct costs, selling, general and administration in the statement of earnings. (d) Actuarial assumptions: The following represents the weighted-average of the principle actuarial assumptions used in calculating the defined benefit obligations at the reporting date. December 31, December 31, 2017 2016 Discount rate 3.4 % 3.9 % Future salary increases 3.25% - 3.75 % 3.5 % Health care trends 6.75 % 4.5 % Longevity at age 65 for current pensioners: Males 20.9 20.9 Females 22.9 23.0 Longevity at age 65 for current pensioners aged 45: Males 22.4 22.4 Females 24.3 24.5 As at December 31, 2017, the weighted-average duration of the defined benefit obligation was 13.1 years (December 31, 2016 - 12.9 years). (e) Sensitivity analysis: Reasonably possible changes at the reporting date to one of the relevant actuarial assumptions, holding other assumptions constant, would have affected the defined benefit obligations by the amounts shown below. Increase Decrease As at December 31, 2017 of 1% of 1% Discount rate $ (78.3) $ 96.6 Future salary growth 0.2 (0.2) Health care trends rate 3.2 (2.5) Future mortality (2.1) 2.1 (f) Defined contribution plans: The Company maintains defined contribution plans for some of its employees whereby the Company pays contributions based on a percentage of the employees’ annual salary. For the year ended December 31, 2017, the Company recorded an expense of $15.2 million (2016 - $14.1 million) related to these plans. The Company’s former Executive Vice President and Chief Financial Officer’s employment agreement includes post-employment benefits that will be paid on or after retirement. The Company will contribute $ 4.2 million (C$ 5.3 million) to a trust which the employee is the primary beneficiary, in equal quarterly amounts of $0.4 million (C$ 0.5 million), over an eleven quarter term commencing October 1, 2016. For the year ended December 31, 2017, the Company recorded an expense of $1.5 million (2016 - $0.4 million) related to these benefits. |
Long-term debt
Long-term debt | 12 Months Ended |
Dec. 31, 2017 | |
Long-term debt | |
Long-term debt | 19. Long-term debt: December 31, December 31, 2017 2016 Syndicated credit facilities: Revolving loan payable $ 454.0 $ 241.5 Revolving loan payable in Canadian dollars (December 31, 2017 - C$nil; December 31, 2016 - C$25.0 million) — 18.6 Operating loan payable in Canadian dollars (December 31, 2017 - C$51.0 million; December 31, 2016 - C$nil) 40.6 — Term Loan A 500.0 — Term Loan B 2,000.0 — Senior term notes payable: 2024 Term Notes — 236.3 2017 Term Notes — 100.0 Financing fees (52.4) (0.4) Obligations under finance leases 18.8 4.7 Total long-term debt 2,961.0 600.7 Current portion (18.1) (101.9) Non-current portion $ 2,942.9 $ 498.8 On October 5, 2017, in connection with the acquisition of DigitalGlobe, the Company entered into a $3.75 billion senior secured syndicated credit facility (the “Syndicated Credit Facility”). The Syndicated Credit Facility is comprised of: ( i ) a four year senior secured first lien revolving credit facility in an aggregate principal amount of $1.15 billion and a four year senior secured first lien operating facility in an aggregate principal amount of $100.0 million (collectively, the “Revolving Credit Facilities”) , ( ii) a senior secured first lien term A facility (“Term Loan A”) in an aggregate principal amount of $500.0 million consisting of a $250.0 million tranche with a three year maturity and a $250.0 million tranche with a four year maturity, and ( iii ) a seven year senior secured first lien term B facility (“Term Loan B”) in an aggregate principal amount of $2.0 billion. The net proceeds of the Syndicated Credit Facility were used, along with cash on hand, to consummate the acquisition of DigitalGlobe, to refinance all amounts outstanding under the Company’s existing syndicated credit facility and senior term loans, to repay DigitalGlobe’s outstanding indebtedness, to pay transaction fees and expenses, to fund working capital and for general corporate purposes. Loans under the Revolving Credit Facility are available in U.S. dollars and, in respect of the operating facility, at the option of the Company, in Canadian dollars. Term Loan A and Term Loan B are repayable in U.S. dollars. Borrowings under the Revolving Credit Facility and Term Loan A bear interest at a rate equal to U.S. Libor (for U.S. dollar borrowings) and CDOR or Canadian Bankers’ Acceptances (for Canadian dollar borrowings), plus a margin of 1.2% - 3.0% per annum, based on the Company’s total leverage ratio. Term Loan B bears interest at U.S. Libor plus 2.75% per annum. The Revolving Credit Facility and Term Loan A are payable at maturity. Term Loan B will amortize in equal quarterly installments in aggregate annual amounts equal to 1% of the original principal amount of the loan, with the final balance payable at maturity. The Revolving Credit Facility, Term Loan A, and Term Loan B may be repaid by the Company, in whole or in part, together with accrued interest, without premium or penalty, with the exception of a 1% soft call prepayment premium on Term Loan B, applicable during the first six months of the loan. The Syndicated Credit Facility is guaranteed by the Company and certain designated subsidiaries of the Company. The security for the Syndicated Credit Facility, subject to customary exceptions, will include substantially all the tangible and intangible assets of the Company and its subsidiary guarantors. The Company is required to make mandatory prepayments of the outstanding principal and accrued interest upon the occurrence of certain events and to the extent of a specified percentage of annual excess cash flow that is not reinvested or used for other specified purposes. The Syndicated Credit Facility is subject to customary affirmative and negative covenants, default provisions, representations and warranties and other terms and conditions. The Revolving Credit Facility includes an aggregate $200.0 million sub limit under which letters of credit can be issued. As of Decembe r 31, 2017, the Company also had in place a total of $125.0 million in letter of credit facilities with major banks. As at December 31, 2016, the Company had certain amounts owing under its previous syndicated credit facility, a twelve year senior secured note purchase agreement for $250.0 million (the “2024 Term Notes”), and a long term debt agreement for $100.0 million (the “2017 Term Notes”). On February 22, 2017, the Company repaid in full at maturity $100.0 million to settle the 2017 Term Notes. On February 28, 2017, the Company repaid $10.2 million of principal of its 2024 Term Notes in connection with a drawdown under its revolving securitization facility agreement. On October 5, 2017, the Company’s previous syndicated credit facility and 2024 Term Notes were fully repaid, in addition to a make-whole premium of $20.0 million, concurrent with the borrowings under the Syndicated Credit Facility. Annual contractual principal repayments on long-term debt, net of financing fees, as at December 31, 2017 are as follows: Term Syndicated Finance Notes credit facility leases Total Less than one year $ — $ 11.4 $ 6.7 $ 18.1 Between one and five years 494.6 548.5 12.1 1,055.2 More than five years — 1,887.7 — 1,887.7 $ 494.6 $ 2,447.6 $ 18.8 $ 2,961.0 |
Shareholders' equity
Shareholders' equity | 12 Months Ended |
Dec. 31, 2017 | |
Shareholders equity | |
Shareholders equity | 20. Shareholders’ equity: Share capital: Authorized: Unlimited number of common shares with no par value Unlimited number of preferred shares, issuable in series, convertible to common shares Common shares issued and fully paid: Number of shares Amount Balance as at December 31, 2015 36,227,952 $ 455.8 Common shares issued under employee share purchase plan (note 22(a)) 66,466 4.1 Common shares issued upon exercise of share-based compensation awards (note 22(b)) 83,860 7.0 Balance as at December 31, 2016 36,378,278 466.9 Common shares issued as part of acquisition consideration of DigitalGlobe, net of share issuance costs (note 9) 19,644,240 1,071.1 Common shares issued under employee share purchase plan (note 22(a)) 83,453 4.5 Common shares issued upon exercise of share-based compensation awards (note 22(b)&(c)) 105,595 7.8 Balance as at December 31, 2017 56,211,566 $ 1,550.3 The following dividends were declared and paid by the Company: For the year ended December 31, 2017 2016 C$1.48 per common share (2016 - C$1.48) $ 47.4 $ 41.0 |
Earnings per common share
Earnings per common share | 12 Months Ended |
Dec. 31, 2017 | |
Earnings per common share | |
Earnings per common share | 21. Earnings per common share: The following table outlines the calculation of basic earnings per common share: For the year ended December 31, 2017 2016 Net earnings $ 100.4 $ 105.6 Weighted average number of common shares outstanding 41,140,321 36,306,880 Deferred share units outstanding 68,007 70,476 Weighted average number of common shares outstanding - basic 41,208,328 36,377,356 Earnings per common share - basic $ 2.44 $ 2.90 The following table outlines the calculation of diluted earnings per common share: For the year ended December 31, 2017 2016 Net earnings - basic $ 100.4 $ 105.6 Effect of potentially dilutive share appreciation rights — (2.4) Net earnings - dilutive 100.4 103.2 Weighted average number of common shares outstanding - basic 41,208,328 36,377,356 Effect of potentially dilutive share appreciation rights 24,743 140,136 Effect of restricted share units 76,810 — Weighted average number of common shares outstanding - diluted 41,309,881 36,517,492 Earnings per common share - diluted $ 2.43 $ 2.83 As at December 31, 2017, 4,501,000 share appreciation rights (December 31, 2016 - 3,665,000) were excluded from the diluted weighted average number of ordinary shares calculation because their effect would have been anti-dilutive. |
Share-based payment plans
Share-based payment plans | 12 Months Ended |
Dec. 31, 2017 | |
Share-based payment plans | |
Share-based payment plans | 22. Share-based payment plans: (a) Employee share purchase plan: On October 1, 2001, the Company implemented an employee share purchase plan. Under this plan, the Company may issue 1,500,000 common shares to its employees. The maximum number of common shares that may be issued under the plan in any one year is 300,000. Under the terms of the plan, employees can purchase shares of the Company at 85% of the market value of the shares. Employees can allocate a maximum of 10% of their salary to the plan to a maximum of C$20,000.00 per annum. For the year ended December 31, 2017, 83,453 (2016 - 66,466) common shares were issued at an average price of C$59.58 (2016 - C$70.56) under the employee share purchase plan. (b) Share appreciation rights: The Company awards share appreciation rights (“SARs”) to certain employees under its share-based compensation plans. Certain awards issued under the 2013 through 2017 and Omnibus Equity Incentive plans remain outstanding as at December 31, 2017. The SARs issued under the 2013 through 2016 plans vest over a period of three years, in the amount of one-third each year, and expire five years from their grant date. The SARs issued under the 2017 and Omnibus Equity Incentive plans vest over a period of four years, in the amount of one-quarter each year, and expire ten years from their grant date. The Company, at its sole discretion, has the ability to settle the SARs in cash or shares of the Company. (i) SARs accounted for as cash-settled awards: A summary of the SARs accounted for as cash-settled awards for the years ended December 31, 2017 and 2016 are presented below: 2017 2016 Weighted Weighted average average Number exercise price Number exercise price of SARs per SAR of SARs per SAR SARs outstanding, beginning of year 3,031,760 C$ 79.64 2,103,627 C$ 80.39 SARs issued 25,523 68.56 1,135,266 75.48 SARs exercised (227,633) 54.54 (147,665) 54.06 SARs cancelled (190,793) 81.53 (59,468) 90.06 SARs outstanding, end of year 2,638,857 C$ 81.56 3,031,760 C$ 79.64 SARs exercisable, end of year 1,651,216 C$ 83.61 1,323,249 C$ 78.92 The following table summarizes information about outstanding SARs accounted for as cash-settled awards: As at December 31, 2017 SARs outstanding SARs exercisable Weighted Weighted Weighted Weighted average average average average remaining exercise remaining exercise Number contractual price per Number contractual price per Prices per share of SARs life (in years) SAR of SARs life (in years) SAR C$56.95 to C$70.46 612,364 7.7 C$ 66.65 195,833 5.6 C$ 66.15 C$71.25 to C$82.73 825,143 1.9 82.02 608,331 1.4 81.97 C$83.60 to C$90.48 863,475 2.5 86.82 621,825 2.3 86.92 C$93.30 to C$97.93 337,875 2.4 94.07 225,227 2.4 94.07 2,638,857 3.5 C$ 81.57 1,651,216 2.4 C$ 83.61 As at December 31, 2016 SARs outstanding SARs exercisable Weighted Weighted Weighted Weighted average average average average remaining exercise remaining exercise Number contractual price per Number contractual price per Prices per share of SARs life (in years) SAR of SARs life (in years) SAR C$40.61 to C$51.95 123,592 0.6 C$ 48.58 123,592 0.6 C$ 48.58 C$56.95 to C$69.73 738,579 7.8 65.92 161,005 1.1 62.54 C$78.54 to C$82.73 887,472 2.8 82.10 554,515 1.9 81.86 C$83.60 to C$90.48 923,242 3.5 86.82 364,546 3.1 87.00 C$92.13 to C$97.93 358,875 3.4 94.06 119,591 3.4 94.06 3,031,760 4.2 C$ 79.64 1,323,249 2.1 C$ 78.92 (ii) SARs accounted for as equity-settled awards: A summary of the SARs accounted for as equity-settled awards for the years ended December 31, 2017 and 2016 are presented below: 2017 2016 Weighted Weighted average average Number exercise price Number exercise price of SARs per SAR of SARs per SAR SARs outstanding, beginning of year 3,161,657 C$ 78.04 2,233,299 C$ 81.18 SARs issued 499,339 75.32 1,161,900 68.09 SARs exercised (201,155) 63.07 (189,708) 53.65 SARs cancelled (121,693) 76.02 (43,834) 80.08 SARs outstanding, end of year 3,338,148 C$ 78.61 3,161,657 C$ 78.04 SARs exercisable, end of year 1,812,010 C$ 83.50 1,395,572 C$ 82.70 The following table summarizes information about outstanding SARs accounted for as equity-settled awards: As at December 31, 2017 SARs outstanding SARs exercisable Weighted Weighted Weighted Weighted average average average average remaining exercise remaining exercise Number contractual price per Number contractual price per Prices per share of SARs life (in years) SAR of SARs life (in years) SAR C$65.82 to C$69.86 1,216,810 9.0 C$ 66.64 211,750 8.9 C$ 66.72 C$72.33 to C$85.82 1,347,504 3.7 83.98 847,093 1.9 83.72 C$87.70 to C$95.67 773,834 1.9 88.05 753,167 1.9 87.96 3,338,148 5.2 C$ 78.60 1,812,010 2.7 C$ 83.50 As at December 31, 2016 SARs outstanding SARs exercisable Weighted Weighted Weighted Weighted average average average average remaining exercise remaining exercise Number contractual price per Number contractual price per Prices per share of SARs life (in years) SAR of SARs life (in years) SAR C$40.61 to C$66.72 1,179,971 9.2 C$ 65.45 94,071 0.8 C$ 51.22 C$71.22 to C$85.82 1,202,352 3.1 83.89 774,845 2.6 83.00 C$87.70 to C$95.67 779,334 2.9 88.05 526,656 2.9 87.89 3,161,657 5.3 C$ 78.04 1,395,572 2.6 C$ 82.70 (c) Restricted share units: In 2017, the Company issued restricted share units (“RSUs”) to certain employees under a new Omnibus Equity Incentive Plan. The RSUs vest over a period of three years, in the amount of one-third each year, and are equity-settled on the vesting date. As part of the acquisition of DigitalGlobe, the Company provided replacement RSUs for a certain portion of the unvested RSU’s previously granted to DigitalGlobe employees. The replacement RSU’s will continue to vest over the next four years, based on the terms of the original plan. A summary of the RSUs and replacement RSUs as at December 31, 2017 and changes during the year are presented below: RSUs Replacement RSUs Weighted Weighted average average remaining Weighted remaining Weighted vesting average vesting average Number period grant date Number period grant date of RSUs (in years) fair value of RSUs (in years) fair value RSUs outstanding, beginning of year — — C$ — — — $ — RSUs granted 590,663 3.0 79.68 — — — RSUs acquired (note 9) — — — 592,038 1.3 54.57 RSUs vested — — — (100,269) — 54.57 RSUs cancelled — — — (21,668) — 54.57 RSUs outstanding, end of year 590,663 3.0 C$ 79.68 470,101 1.3 $ 54.57 (d) Share matching program: The Company maintains a share matching program, where certain executives are granted one common share of the Company for every three common shares of the Company that they purchase and hold for a consecutive period of three years. Common shares are purchased on the open market to satisfy obligations under the share matching program and are expensed as share-based compensation in the statement of earnings. (e) Deferred share units: The Company maintains a deferred share units (“DSUs”) plan whereby the Company’s independent directors receive some or all of their annual retainers in DSUs. DSUs are granted at a price equal to the closing price of the common shares on the day before the date of grant. The DSUs are settled in equity at retirement at the closing price of the common shares of the Company on the retirement date of the director. A summary of the DSUs as at December 31, 2017 and 2016 and changes during the year are presented below: 2017 2016 Weighted Weighted average average Number issue price Number issue price of DSUs per DSU of DSUs per DSU DSUs outstanding, beginning of year 62,099 C$ 44.93 79,867 C$ 40.81 DSUs issued 18,042 69.24 8,756 81.36 DSUs redeemed (681) 81.42 (26,524) 44.56 DSUs outstanding, end of year 79,460 C$ 50.13 62,099 C$ 44.93 (f) Total share-based compensation expense: Total share-based compensation expense from all forms of share-based payment plans for the year ended December 31, 2017 was an expense of $57.9 million (2016 - $14.7 million). The details are as follows: For the year ended December 31, 2017 2016 Share appreciation rights: Cash-settled $ 12.2 $ (5.2) Equity-settled 7.8 6.9 Restricted stock units: Equity-settled 2.9 — Deferred share units: Equity-settled 0.9 0.4 Executive compensation settlement (note 8) — 11.9 Accelerated vesting of share-based payment awards (note 9) 33.1 — Share matching program 0.3 0.1 Employee share purchase plan 0.7 0.6 $ 57.9 $ 14.7 (g) Intrinsic value: The intrinsic value of a share-based payment award is the positive difference between the market price of the Company’s share and the exercise price of the award. As at December 31, 2017, the intrinsic value of vested cash-settled share-based payment awards was $2.3 million (December 31, 2016 - $2.3 million). (h) Valuation of cash-settled SARs: The fair value of the SARs were estimated at each reporting period using the Black-Scholes option pricing model with the following assumptions: December 31, December 31, 2017 2016 Risk-free interest rate 1.7 % - 1.9 % 0.7 % - 1.4 % Dividend yield 1.8 % 2.2 % Expected award lives 1 - 78 months 1 - 84 months Volatility 14 % - 25 % 20 % - 26 % (i) Valuation of equity-settled SARs, RSUs and DSUs: The fair value of equity-settled SARs, RSUs and DSUs were estimated on the date of the grant or the date of accounting reclassification using the Black-Scholes option pricing model with the following assumptions: Risk-free interest rate 0.6 % - 1.9 % Dividend yield 1.5 % - 2.2 % Expected award lives 5 - 84 months Volatility 17 % - 25 % |
Financial instruments and fair
Financial instruments and fair value disclosures | 12 Months Ended |
Dec. 31, 2017 | |
Financial instruments and fair value disclosures | |
Financial instruments and fair value disclosures | 23. Financial instruments and fair value disclosures: Refer to significant accounting policy note 3(i). (a) Financial instruments by category: The classification of financial instruments and their carrying amounts are as follows: As at December 31, 2017: Financial Derivative assets at instruments Available-for- fair value in a qualifying sale through hedging Loans and financial Total carrying earnings relationship receivables assets Other amount Financial assets: Current: Cash and cash equivalents $ — $ — $ 19.1 $ — $ — $ 19.1 Trade and other receivables: Trade accounts receivable — — 273.1 — — 273.1 Orbital receivables — — 30.0 — — 30.0 Other receivables — — 8.9 — 36.2 45.1 — — 312.0 — 36.2 348.2 Financial assets, other: Short-term investments — — — 0.8 — 0.8 Notes receivable — — 0.2 — — 0.2 Derivative financial instruments 7.1 2.5 — — — 9.6 Restricted cash — — 5.7 — — 5.7 7.1 2.5 5.9 0.8 — 16.3 Non-current: Orbital receivables — — 424.2 — — 424.2 Financial assets, other: Notes receivable — — 20.2 — — 20.2 Derivative financial instruments 1.6 1.3 — — — 2.9 Long-term investments — — — 27.4 — 27.4 Restricted cash — — 17.3 — — 17.3 1.6 1.3 37.5 27.4 — 67.8 As at December 31, 2017, included in long-term investments is an investment of $26.1 million (C$32.7 million) (December 31, 2016 - $24.4 million (C$32.7 million)) in unquoted equity securities in an entity over which the Company does not have significant influence. The fair value of these unquoted equity securities cannot be reliably determined due to the lack of an active market and are carried at cost. Financial Derivative liabilities at instruments fair value in a qualifying Other through hedging financial Total carrying earnings relationship liabilities amount Financial liabilities: Current: Trade and other payables $ — $ — $ 236.9 $ 236.9 Financial liabilities, other: Non-trade payables — — 12.1 12.1 Derivative financial instruments 5.4 1.4 — 6.8 5.4 1.4 12.1 18.9 Securitization liability — — 15.5 15.5 Long-term debt: Current portion of long-term debt — — 11.4 11.4 Obligations under finance leases — — 6.7 6.7 — — 18.1 18.1 Non-current: Financial liabilities, other: Non-trade payables — — 11.7 11.7 Derivative financial instruments 1.4 0.7 — 2.1 1.4 0.7 11.7 13.8 Securitization liability — — 90.8 90.8 Long-term debt: Long-term debt — — 2,930.9 2,930.9 Obligations under finance leases — — 12.0 12.0 — — 2,942.9 2,942.9 As at December 31, 2016: Financial Derivative assets at instruments Available-for- fair value in a qualifying sale through hedging Loans and financial Total carrying earnings relationship receivables assets Other amount Financial assets: Current: Cash and cash equivalents $ — $ — $ 14.1 $ — $ — $ 14.1 Trade and other receivables: Trade accounts receivable — — 175.9 — — 175.9 Orbital receivables — — 27.1 — — 27.1 Other receivables — — 5.7 — 22.4 28.1 — — 208.7 — 22.4 231.1 Financial assets, other: Short-term investments — — — 5.8 — 5.8 Notes receivable — — 38.5 — — 38.5 Derivative financial instruments 6.1 5.7 — — — 11.8 Restricted cash — — 8.6 — — 8.6 6.1 5.7 47.1 5.8 — 64.7 Non-current: Orbital receivables — — 418.4 — — 418.4 Financial assets, other: Notes receivable — — 14.0 — — 14.0 Derivative financial instruments 3.7 2.2 — — — 5.9 Long-term investments — — — 24.4 — 24.4 Restricted cash — — 16.6 — — 16.6 3.7 2.2 30.6 24.4 — 60.9 Financial Derivative liabilities at instruments fair value in a qualifying Other through hedging financial Total carrying earnings relationship liabilities amount Financial liabilities: Current: Bank overdraft $ — $ — $ 17.9 $ 17.9 Trade and other payables — — 186.0 186.0 Financial liabilities, other: Non-trade payables — — 5.4 5.4 Derivative financial instruments 8.8 3.1 — 11.9 8.8 3.1 5.4 17.3 Securitization liability — — 14.9 14.9 Long-term debt: Long-term debt — — 99.9 99.9 Obligations under finance leases — — 2.0 2.0 — — 101.9 101.9 Non-current: Financial liabilities, other: Non-trade payables — — 12.6 12.6 Derivative financial instruments 1.3 1.5 — 2.8 1.3 1.5 12.6 15.4 Securitization liability — — 106.3 106.3 Long-term debt: Long-term debt — — 496.0 496.0 Obligations under finance leases — — 2.8 2.8 — — 498.8 498.8 (b) Fair value of financial instruments: Financial instruments carried at amortized cost: As at December 31, 2017 and 2016, the fair values of all financial instruments carried at amortized cost, other than long-term debt and orbital receivables, approximated their carrying value. The fair value of long-term debt is estimated based on a discounted cash flow approach, categorized as Level 2 as outlined in the descriptions below. The estimated fair value of long-term debt, excluding obligations under finance leases, at December 31, 2017, was $3,176.3 million (December 31, 2016 - $598.7 million) as compared to the carrying value of $2,942.2 million (December 31, 2016 - $596.0 million). As at December 31, 2017, long-term debt included a designated portion of a net investment hedge, which had a fair value of $297.8 million (December 31, 2016 - $50.2 million) and a carrying value of $271.0 million (December 31, 2016 - $50.0 million). The fair value of obligations under finance leases approximates their carrying value. The fair value of orbital receivables is estimated based on a discounted cash flow approach using discount rates that reflect the credit risk of counterparties. The estimated fair value of orbital receivables at December 31, 2017 was $507.0 million (December 31, 2016 - $505.0 million) as compared to the carrying value of $454.2 million (December 31, 2016 - $445.6 million). As at December 31, 2017, the carrying amount of assets pledged as collateral amounted to $3,786.0 million (December 31, 2016 - $1,578.1 million). Financial instruments carried at fair value: The table below analyzes financial instruments carried at fair value, by valuation method. The different levels have been defined as follows: Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities. Level 2: Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices). Level 3: Inputs for the asset or liability that are not based on observable market data (unobservable inputs). December 31, 2017 Level 1 Level 2 Level 3 Total Assets Short-term investments $ 0.8 $ — $ — $ 0.8 Derivative financial instruments — 12.5 — 12.5 Total assets $ 0.8 $ 12.5 $ — $ 13.3 Liabilities Derivative financial instruments $ — $ 8.9 $ — $ 8.9 During the year, no transfers occurred between Level 1 and Level 2 financial instruments. December 31, 2016 Level 1 Level 2 Level 3 Total Assets Short-term investments $ 5.8 $ — $ — $ 5.8 Derivative financial instruments — 17.9 — 17.9 Total assets $ 5.8 $ 17.9 $ — $ 23.7 Liabilities Derivative financial instruments $ — $ 14.7 $ — $ 14.7 The fair values of the short-term investments are based on their quoted prices. The Company determines fair value of its derivative financial instruments based on internal valuation models, such as discounted cash flow analysis, using management estimates and observable market-based inputs, as applicable. Management estimates include assumptions concerning the amount and timing of estimated future cash flows and application of appropriate discount rates. Observable market-based inputs are sourced from third parties and include interest rates and yield curves, currency spot and forward rates, and credit spreads, as applicable. (c) Credit risk: The Company is exposed to credit risk through its cash and cash equivalents, restricted cash, short-term investments, trade and other receivables, non-securitized orbital receivables, notes receivable and derivative financial instruments. The Company’s credit exposure through receivables relates to a diverse group of customers, including government customers, in multiple geographic regions purchasing a wide variety of products and services from the Company, and is therefore mitigated by a reduced concentration of risk. Customers are assessed for credit risk based on the nature of the customer organization, financial health, and credit history with the Company and others. Credit limits or maximum exposures under revenue contracts are identified, approved and monitored. In some cases, the Company will procure credit insurance to mitigate its exposure. Trade and other receivables, non-securitized orbital receivables, and notes receivable are considered for impairment on a case by case basis and provided for when objective evidence is received that a customer may default. The amount of financial assets recognized on the balance sheet as at December 31, 2017 and 2016 are summarized in the carrying values tables in note 23(a). The carrying amount of these assets represent their maximum credit exposure, with the exception of derivative financial instruments subject to master netting arrangements as described in note 23(g). The Company’s trade receivables and allowance for doubtful accounts are shown in the following table: December 31, December 31, 2017 2016 Trade receivables $ 282.8 $ 180.9 Less: allowance for doubtful accounts (9.7) (5.0) Trade receivables, net of allowance for doubtful accounts $ 273.1 $ 175.9 The aging of trade receivables at the reporting date was: December 31, December 31, 2017 2016 Not past due $ 208.3 $ 130.1 Past due 1 - 30 days 52.5 15.0 Past due 31 - 90 days 6.8 5.7 Past due 90+ days 5.5 25.1 $ 273.1 $ 175.9 Allowance for doubtful accounts: Balance as at December 31, 2015 $ 8.9 Allowance reversed (3.7) Foreign exchange (0.2) Balance as at December 31, 2016 5.0 Bad debt expense 4.7 Balance as at December 31, 2017 $ 9.7 In implementing all its derivative financial instruments, the Company deals with counterparties and is therefore exposed to credit related losses in the event of non-performance by these counterparties. However, the Company deals with counterparties that are major financial institutions, and does not expect any of the counterparties to fail to meet their obligations. During the year, the Company has also provided an indemnity to Export Development Canada (“EDC”) in partial support of selected satellite financings provided by EDC. The indemnity is not recognized on the balance sheet and if it was called upon, the maximum value of the indemnity as at December 31, 2017 was $50.3 million (December 31, 2016 - $29.7 million). (d) Liquidity risk: The Company’s liquidity risk is the risk it may not be able to meet its contractual obligations associated with financial liabilities as they come due. The Company’s principal sources of liquidity are cash provided by operations, including collection of orbital receivables and advance payments from customers related to long-term construction contracts and service contracts, and access to credit facilities and equity capital resources, including public common share offerings. The Company’s short-term cash requirements are primarily to fund working capital, with medium term requirements to service and repay debt, and invest in capital and intangible assets, and research and development for growth initiatives. Cash is also used to pay dividends and finance other long-term strategic initiatives. For the foreseeable future, the Company believes that these principal sources of liquidity are sufficient to maintain the Company’s capacity and to meet planned growth and development activities. The maturities of the contractual cash flows of the Company’s financial liabilities are shown in the following table: Maturing in Maturing Carrying Contractual less than Maturing in Maturing in beyond December 31, 2017 amount cash flows 1 year 1 to 2 years 2 to 5 years 5 years Non-derivative financial liabilities: Bank overdraft $ — $ — $ — $ — $ — $ — Trade and other payables 236.8 236.8 236.8 — — — Financial liabilities, other: Non-trade payables 14.4 14.6 2.6 1.3 3.9 6.8 Securitization liability 106.3 108.8 16.3 15.6 57.3 19.6 Long-term debt: Obligations under finance leases 18.8 20.5 7.4 6.4 6.7 — Long-term debt, Including interest 2,942.2 3,799.1 169.9 160.5 1,407.7 2,061.0 2,961.0 3,819.6 177.3 166.9 1,414.4 2,061.0 3,318.5 4,179.8 433.0 183.8 1,475.6 2,087.4 Derivative financial liabilities: Foreign exchange forward contracts 8.0 8.1 6.4 1.5 0.2 — Other derivative instruments 0.9 0.9 0.4 0.4 0.1 — 8.9 9.0 6.8 1.9 0.3 — $ 3,327.4 $ 4,188.8 $ 439.8 $ 185.7 $ 1,475.9 $ 2,087.4 Maturing in Maturing Carrying Contractual less than Maturing in Maturing in beyond December 31, 2016 amount cash flows 1 year 1 to 2 years 2 to 5 years 5 years Non-derivative financial liabilities: Bank overdraft $ 17.9 $ 17.9 $ 17.9 $ — $ — $ — Trade and other payables 186.0 186.0 186.0 — — — Financial liabilities, other: Non-trade payables 18.1 18.7 6.2 2.0 6.2 4.3 Securitization liability 121.2 151.9 22.6 22.3 63.9 43.1 Long-term debt: Obligations under finance leases 4.8 5.1 2.4 1.7 1.0 — Long-term debt, Including interest 596.0 694.2 119.2 20.3 400.9 153.8 600.8 699.3 121.6 22.0 401.9 153.8 944.0 1,073.7 354.3 46.3 472.0 201.1 Derivative financial liabilities: Foreign exchange forward contracts 12.8 12.9 10.4 1.6 0.9 — Other derivative instruments 1.9 1.9 1.5 0.3 0.1 — 14.7 14.8 11.9 1.9 1.0 — $ 958.7 $ 1,088.5 $ 366.2 $ 48.2 $ 473.0 $ 201.1 (e) Interest rate risk: The Company is exposed to fluctuations in interest rates since a proportion of its capital structure consists of variable rate debt. The following table presents the effect of an increase or decrease in interest rates, all other variables remaining constant, on net earnings and other comprehensive income for the period ended December 31, 2017: 50 basis points higher 50 basis points lower Effect on other Effect on other Effect on comprehensive Effect on comprehensive net earnings income net earnings income Interest rate risk $ (4.3) $ — $ 4.3 $ — (f) Foreign exchange risk: The Company is exposed to foreign exchange risk on sales contracts, purchase contracts and debt denominated in currencies other than the functional currency of the Company’s contracting entity. For Canadian operations, this is typically the United States dollar or Euro. For United States operations, this is typically the Euro or Japanese yen. The Company is also exposed to foreign currency risk on the net assets of its foreign operations. The Company maintains a hedging program and enters into foreign exchange forward contracts to hedge the significant majority of the exposure arising from expected foreign currency denominated cash flows. The term of the foreign exchange forward contracts can range from less than one month to several years. The Company also enters into foreign exchange forward contracts to manage exposures from certain intercompany loans, miscellaneous foreign currency payables and receivables, borrowings in foreign currency and investments in foreign operations. The Company does not enter into foreign exchange forward contracts for trading or speculative purposes. As at December 31, 2017, the Company had Canadian dollar foreign exchange forward purchase contracts for $190.8 million (December 31, 2016 - $193.0 million) and United States dollar foreign exchange purchase contracts for $57.9 million (December 31, 2016 - $30.7 million). The Company also had Canadian dollar foreign exchange forward sales contracts for $354.4 million (December 31, 2016 - $301.2 million) and United States dollar foreign exchange forward sales contracts for $77.0 million (December 31, 2016 - $170.4 million). The following table summarizes the Company’s foreign exchange forward contracts outstanding, which have been recorded on the balance sheet at fair value as assets and liabilities as appropriate: Carrying Average value Notional exchange asset December 31, 2017 amount rate Maturity dates (liability) Purchase contracts settled in Canadian dollars: U.S. dollar 165.3 1.2742 January 2018 - Oct 2020 $ (2.7) Euro 15.7 1.4998 January 2018 - September 2020 0.2 British pound 2.4 1.6919 January 2018 - January 2019 — Sales contracts settled in Canadian dollars: U.S. dollar 311.5 1.2790 January 2018 - January 2021 $ 6.5 Euro 26.1 1.4926 January 2018 - January 2021 (0.6) British pound 1.9 1.7206 January 2018 - January 2019 — Purchase contracts settled in United States dollars: Japanese yen 2,231.2 0.0092 March 2018 - March 2019 $ (0.5) Euro 31.9 1.1530 January 2018 - April 2019 2.1 Sales contracts settled in United States dollars: Japanese yen 1,115.5 0.0092 March 2018 - March 2019 $ 0.2 Euro 57.6 1.1584 January 2018 - April 2019 (3.3) Carrying Average value Notional exchange asset December 31, 2016 amount rate Maturity dates (liability) Purchase contracts settled in Canadian dollars: U.S. dollar 175.2 1.3100 January 2017 - March 2020 $ 3.8 Euro 14.8 1.4163 January 2017 - September 2018 0.1 British pound 3.1 1.8305 January 2017 - March 2018 (0.4) Sales contracts settled in Canadian dollars: U.S. dollar 282.4 1.2962 January 2017 - January 2021 $ (8.5) Euro 23.2 1.4414 January 2017 - January 2021 0.1 British pound 2.4 1.7976 January 2017 - March 2018 0.2 Purchase contracts settled in United States dollars: Japanese yen 1,726.3 0.0096 March 2017 - March 2019 $ (1.4) Euro 11.7 1.0767 January 2017 - April 2017 (0.2) Sales contracts settled in United States dollars: Japanese yen 3,276.7 0.0084 January 2017 - October 2017 $ (0.9) Euro 126.9 1.1270 January 2017 - April 2019 6.9 Cash flow hedges: The Company applies cash flow hedge accounting when a foreign exchange contract is included in a qualifying hedging relationship as described in note 3(i)( iii ). The following table indicates the periods in which the cash flows associated with designated cash flow hedges are expected to occur and to impact earnings and the carrying amounts of the related hedging instruments: Maturing in Maturing Carrying Expected less than Maturing in Maturing in beyond December 31, 2017 amount cash flows 1 year 1 to 2 years 2 to 5 years 5 years Foreign exchange forward contracts: Assets $ 3.8 $ 4.3 $ 3.0 $ 1.0 $ 0.3 $ — Liabilities 2.1 2.2 1.4 0.5 0.3 — Maturing in Maturing Carrying Expected less than Maturing in Maturing in beyond December 31, 2016 amount cash flows 1 year 1 to 2 years 2 to 5 years 5 years Foreign exchange forward contracts: Assets $ 7.9 $ 8.1 $ 5.8 $ 1.6 $ 0.7 $ — Liabilities 4.6 4.7 3.1 0.8 0.8 — Net investment hedges: As at December 31, 2017, the Company had designated $271.0 million of its $2.0 billion Term Loan B as a hedge of its investment in certain U.S. subsidiaries. As of December 31, 2016, the Company had designated $50.0 million of its $100.0 million 2017 Term Notes and $21.0 million of foreign exchange sell contracts as a hedge of its investment in certain U.S. subsidiaries. Foreign exchange gains and losses arising from the translation of the designated portion of the Term Loan B are recognized in other comprehensive income to the extent that the hedges are effective and are recognized in the consolidated statements of earnings to the extent that the hedges are ineffective. Foreign exchange sensitivity: The following table presents the effect of the strengthening and weakening of various currencies (all other variables remaining constant) on the fair valuation of financial instruments as at December 31 and the corresponding effect on net earnings and other comprehensive income: Currency 1 strengthens 10% Currency 1 weakens 10% against currency 2 against currency 2 Effect on other Effect on other Effect on comprehensive Effect on comprehensive Currency 1 Currency 2 net earnings income net earnings income December 31, 2017 U.S. dollar Canadian dollar $ (7.6) $ (6.8) $ 7.6 $ 6.8 British pound Canadian dollar — 0.1 — (0.1) Euro Canadian dollar (0.4) (0.4) 0.4 0.4 New Zealand dollar Canadian dollar — (0.1) — 0.1 Euro U.S. dollar 3.4 (1.4) (3.4) 1.4 Japanese yen U.S. dollar 0.2 — (0.2) — December 31, 2016 U.S. dollar Canadian dollar $ 0.1 $ (5.4) $ (0.1) $ 5.4 Euro Canadian dollar (0.3) (0.6) 0.3 0.6 Euro U.S. dollar 4.9 (9.8) (4.9) 9.8 Japanese yen U.S. dollar 0.8 (2.5) (0.8) 2.5 (g) Master netting agreements: Certain of the Company’s derivative financial assets and liabilities are subject to master netting arrangements that do not meet the offsetting criteria under IAS 32 - Financial Instruments: Presentation as the Company does not have a current legally enforceable right to set off recognized amounts and the intention to settle on a net basis, the assets and liabilities, simultaneously. The right of offset is enforceable only on the occurrence of a future trigger such as a credit event. The following table sets out the carrying amounts of foreign exchange forward contracts that are subject to the master netting agreements described above: Gross and net amounts Financial in the instruments Amount consolidated that are if presented December 31, 2017 balance sheet not offset net Derivative financial assets: Foreign exchange forward contracts $ 9.9 $ 6.5 $ 3.4 Derivative financial liabilities: Foreign exchange forward contracts 8.0 6.5 1.5 Gross and net amounts Financial in the instruments Amount consolidated that are if presented December 31, 2016 balance sheet not offset net Derivative financial assets: Foreign exchange forward contracts $ 12.5 $ 8.1 $ 4.4 Other derivative instruments 5.3 — 5.3 17.8 8.1 9.7 Derivative financial liabilities: Foreign exchange forward contracts 12.7 8.1 4.6 Other derivative instruments 1.9 — 1.9 14.6 8.1 6.5 |
Capital management
Capital management | 12 Months Ended |
Dec. 31, 2017 | |
Capital management | |
Capital management | 24. Capital management: The Company’s primary capital management objectives are to provide an adequate return to shareholders, provide adequate and efficient funding of operations, finance growth, preserve financial flexibility to benefit from potential opportunities as they arise and comply with borrowing covenants. The Company defines capital as its share capital, contributed surplus and retained earnings. December 31, December 31, 2017 2016 Share capital $ 1,550.3 $ 466.9 Contributed surplus 50.6 31.0 Retained earnings 261.8 208.8 $ 1,862.7 $ 706.7 The Company regularly issues shares in relation to its long-term compensation plans, employee share purchase plan, and acquisitions. It also occasionally implements share repurchase programs that are approved by the Board of Directors. The Company is required by its lenders under the Syndicated Credit Facility to maintain compliance with certain financial covenants. These covenants include a maximum multiple of debt to EBITDA of 5.5 times (as at each quarter up to and including March 31, 2019, and decreasing thereafter), a minimum multiple of EBITDA to interest expense, and a maximum percentage of distributions to available cash flow. As at December 31, 2017, the Company is compliant with these financial covenants. The Company has term debt outstanding under its Syndicated Credit Facility. Debt is also incurred as required under the Revolving Credit Facilities and is reduced as cash is generated from operations. The Company has monetized some of its orbital receivables, applying the proceeds to reduce its debt, and retains the ability to securitize more orbital receivables in the future. |
Government assistance
Government assistance | 12 Months Ended |
Dec. 31, 2017 | |
Government assistance | |
Government assistance | 25. Government assistance: (a) Investment tax credits: During the year, the Company recognized investment tax credits of $31.6 million (2016 - $22.5 million) as a reduction of current expenses in direct costs, selling, general and administration of which $19.8 million (2016 - $11.6 million) related to expenses incurred in prior years. The Company also recognized $1.0 million as a reduction of the cost of intangible assets during the year (2016 - $1.9 million). The Company has investment tax credits of approximately $66.4 million (2016 - $40.6 million) available to offset future Canadian Federal and Provincial income taxes payable which expire between 2026 and 2037. Investment tax credits are only recognized in the financial statements when the recognition criteria have been met as described in note 3(g). (b) Government grants: (i) Investissement Québec: On November 15, 2010, the Company signed a non-refundable contribution agreement ("Grant") and an interest free refundable contribution agreement (“Interest Free Loan”) with Investissement Québec ("IQ") relating to the expansion of the plant ("Project") at its Sainte-Anne-de-Bellevue subsidiary. Under the Grant, the Company was eligible to receive funding for certain Project expenditures incurred from January 1, 2010 to December 31, 2012 to a maximum of $7.2 million (C$9.0 million). As at December 31, 2017, the Company has received the maximum eligible funding of $7.2 million (C$ 9.0 million) under the Grant. Payments made from the Grant can become conditionally repayable if certain average employment targets are not met from January 1, 2012 to December 31, 2018. As at December 31, 2017, the Company has met the required employment targets. Under the Interest Free Loan, the Company was eligible to receive interest free repayable funding for certain eligible Project expenditures incurred from January 1, 2010 to December 31, 2015 to a maximum of $7.2 million (C$9.0 million). As at December 31, 2017, the Company has received the maximum of $7.2 million (C$9.0 million) under the Interest Free Loan. The loan is repayable in 84 equal and consecutive monthly installments beginning three years subsequent to the receipt of the first disbursement on February 1, 2013. The Company began repaying the loan in the first quarter of 2016. For the year ended December 31, 2017, the Company repaid $1.0 million (2016 - $0.9 million) for the Interest Free Loan. As at December 31, 2017, the discounted Interest Free Loan payable balance of $4.8 million is recorded in financial liabilities (December 31, 2016 - $5.2 million). (ii) Technology Demonstration Program: On May 5, 2016, the Company was awarded a contribution agreement valued at $43.0 million (C$54.0 million) by Innovation, Science and Economic Development under the Technology Demonstration Program (“TDP”). The TDP program contributes funding towards large-scale research and development projects that typically require the integration of several different technologies and the coordination of activities of many partners. The Company will coordinate with a team of Canadian partners, both in industry and academia, to develop innovative technology for space communications and space surveillance. Under the agreement, the Company and its partners can claim 50% of eligible costs up to $86.1 million (C$108.0 million) for the period August 12, 2014 through to March 31, 2021. Of this total, the Company is eligible to receive a maximum contribution of $25.1 million (C$31.5 million) based on 50% of eligible costs up to $50.2 million (C$63.0 million). During the year, the Company recorded a recovery against direct costs, selling, general and administration of $12.5 million (2016 - $8.9 million) for its portion of 50% of eligible costs incurred over the period October 2016 to September 2017. For the year ended December 31, 2017, the Company received proceeds of $10.1 million (2016 - $4.5 million) in respect of its claim for 50% of eligible expenditures over the period April 2016 to June 2017. (iii) Government of Canada: The Company’s Canadian operations have traditionally received funding under contract from the Government of Canada under several programs that support the development of new commercial technologies and products for delivery to customers of the Government of Canada. This funding is subject to possible repayment in the form of royalties, generally not exceeding 5% of future revenues, on commercialization of that intellectual property by the Company. For the years ended December 31, 2017 and 2016, no funding was received under these programs. |
Income taxes
Income taxes | 12 Months Ended |
Dec. 31, 2017 | |
Income taxes | |
Income taxes | 26. Income taxes: The Tax Cuts and Jobs Act ("2017 Act") was enacted on December 22, 2017. The 2017 Act includes a broad range of tax reform proposals affecting businesses, including a reduction in the U.S. federal corporate tax rate from 35% to 21%, a one-time mandatory deemed repatriation tax on earnings of certain foreign subsidiaries that were previously tax deferred, limitations on interest expense deductions, a new base erosion focused minimum tax applicable to certain payments to foreign related parties and the creation of new taxes on earnings of non-US subsidiaries. For the year ended December 31, 2017, the Company has not finalized the accounting for the tax effects of the enactment of the 2017 Act. However, the Company has made a reasonable estimate of the impact of the 2017 Act on the Company’s existing deferred tax balances and the one-time mandatory deemed repatriation tax. The Company’s deferred tax balances for its US subsidiaries have been re-measured based on the newly enacted tax rates at which the deferred tax assets and liabilities are expected to reverse in future fiscal years. The impact of this re-measurement and the provision for the one-time mandatory deemed repatriation tax was not material. For other elements of tax expense noted below, the Company has not been able to make a reasonable estimate and continues to account for such items based on the provisions of the tax laws that were in effect immediately prior to the 2017 Act. As the Company finalizes the accounting for the tax effects of the enactment of the 2017 Act, the Company expects to reflect adjustments to the recorded provisional amounts and record additional tax effects of the 2017 Act. (a) Income tax expense is comprised of the following: For the year ended December 31, 2017 2016 Current tax expense: Current period $ 16.3 $ 20.3 Adjustment for prior periods 2.3 6.7 18.6 27.0 Deferred tax expense: Origination and reversal of temporary differences (38.0) (4.4) Change in unrecognized deductible temporary differences 5.2 1.4 Change in tax rate 0.3 (0.1) Recognition of previously unrecognized tax losses (122.4) — (154.9) (3.1) Income tax expense (recovery) $ (136.3) $ 23.9 (b) A reconciliation of income taxes at statutory rates to actual income tax expense (recovery) is as follows: For the year ended December 31, 2017 2016 Statutory Federal and Provincial tax rate in Canada 26.00 % 26.00 % Income tax expense at the statutory tax rate $ (9.3) $ 33.7 Foreign earnings subject to different rates (13.0) (6.1) Change in statutory rates 3.9 — Change in unrecognized deferred tax assets (122.0) (0.6) Foreign exchange differences (3.4) (1.1) Share-based compensation 2.3 1.8 Other permanent differences 5.2 (3.8) $ (136.3) $ 23.9 (c) Unrecognized deferred tax assets: Deferred tax assets have not been recognized in respect of the following temporary differences: December 31, December 31, 2017 2016 Tax losses $ 177.6 $ 254.1 Other deductible temporary differences 90.4 138.3 $ 268.0 $ 392.4 (d) Recognized deferred tax assets and liabilities: Deferred tax assets and liabilities are attributable to the following: December 31, 2017 Assets Liabilities Net Construction contract assets and liabilities $ 87.6 $ (8.4) $ 79.2 Property, plant and equipment 177.8 (20.6) 157.2 Intangible assets and goodwill 9.2 (553.8) (544.6) Investment tax credits 11.1 (15.3) (4.2) Derivative financial instruments 5.0 (1.5) 3.5 Trade and other payables 26.6 — 26.6 Employee benefits 61.6 — 61.6 Tax loss carry forwards 216.9 — 216.9 Other items 11.2 (2.7) 8.5 Tax assets (liabilities) 607.0 (602.3) 4.7 Set off of tax (498.7) 498.7 — Net tax assets (liabilities) $ 108.3 $ (103.6) $ 4.7 December 31, 2016 Assets Liabilities Net Construction contract assets and liabilities $ 4.3 $ (4.0) $ 0.3 Property, plant and equipment 0.1 (0.4) (0.3) Intangible assets and goodwill 0.8 (7.0) (6.2) Investment tax credits 8.3 (10.6) (2.3) Derivative financial instruments 0.2 (0.8) (0.6) Trade and other payables 2.3 — 2.3 Employee benefits 5.7 — 5.7 Tax loss carry forwards 4.7 — 4.7 Other items 0.2 (0.1) 0.1 Tax assets (liabilities) 26.6 (22.9) 3.7 Set off of tax (11.6) 11.6 — Net tax assets (liabilities) $ 15.0 $ (11.3) $ 3.7 (e) Movement in temporary differences during the year: Recognized Acquired in Balance, Recognized in other business Foreign Balance, December 31, in statement comprehensive combination currency December 31, 2016 of earnings income (note 9) translation 2017 Construction contract assets and liabilities $ 0.3 $ (46.3) $ — $ 125.3 $ (0.1) $ 79.2 Property, plant and equipment (0.3) 74.9 — 82.3 0.3 157.2 Intangible assets and goodwill (6.2) (12.9) — (525.0) (0.5) (544.6) Investment tax credits (2.3) 43.8 — (45.7) — (4.2) Derivative financial instruments (0.6) 0.5 0.9 2.7 — 3.5 Trade and other payables 2.3 17.6 — 6.5 0.2 26.6 Employee benefits 5.7 43.9 (5.6) 17.3 0.3 61.6 Tax loss carry forwards 4.7 76.1 — 135.6 0.5 216.9 Other items 0.1 (42.7) 0.1 51.4 (0.4) 8.5 $ 3.7 $ 154.9 $ (4.6) $ (149.6) $ 0.3 $ 4.7 Recognized Balance, Recognized in other Foreign Balance, December 31, in statement comprehensive currency December 31, 2015 of earnings income translation 2016 Construction contract assets and liabilities $ 1.1 $ (0.9) $ — $ 0.1 $ 0.3 Property, plant and equipment 0.2 (0.5) — — (0.3) Intangible assets and goodwill (6.1) 0.1 — (0.2) (6.2) Investment tax credits (6.4) 4.4 — (0.3) (2.3) Derivative financial instruments (1.1) 0.4 0.1 — (0.6) Trade and other payables 3.7 (1.5) — 0.1 2.3 Employee benefits 5.6 (0.7) 0.6 0.2 5.7 Tax loss carry forwards 2.3 2.4 — — 4.7 Other items 0.6 (0.6) — 0.1 0.1 $ (0.1) $ 3.1 $ 0.7 $ — $ 3.7 (f) As at December 31, 2017, the Company has non-capital losses carried forward for tax purposes totaling approximately $795.6 million that are available to reduce taxable income of future years. These non-capital losses carried forward expire as follows: 2019 $ 0.1 2026 1.1 2027 0.7 2028 9.7 2029 1.1 2030 41.6 2031 12.3 2032 171.9 2033 21.0 2034 15.6 2035 56.5 2036 60.2 2037 401.1 No Expiry 2.7 $ 795.6 The Company also has net capital losses carried forward of approximately $110.0 million that are available to offset capital gains of future years. (g) As at December 31, 2017, the Company had taxable temporary differences relating to investments in subsidiaries of $11.6 million (December 31, 2016 - $63.9 million) that were not recognized because the Company controls the timing of the reversal of the temporary differences and it is satisfied that they will not be reversed in the foreseeable future. |
Contingencies and commitments
Contingencies and commitments | 12 Months Ended |
Dec. 31, 2017 | |
Contingencies and commitments | |
Contingencies and commitments | 27. Contingencies and commitments: (a) As at December 31, 2017, the Company is committed under legally enforceable agreements for purchases and rental payments for amounts as follows: Purchase Operating obligations leases Total 2018 $ 370.2 $ 38.0 $ 408.2 2019 286.6 35.1 321.7 2020 117.7 29.0 146.7 2021 16.6 26.9 43.5 2022 13.8 23.3 37.1 Thereafter 13.8 102.5 116.3 $ 818.7 $ 254.8 $ 1,073.5 Purchase obligations relate to commitments for purchases of property, plant and equipment, intangible assets and operating expenses. Operating leases include minimum rental payments primarily for office space, manufacturing facilities, and equipment. For the year ended December 31, 2017, the Company has recorded total lease expenses of $37.2 million (2016 - $32.7 million) in the statement of earnings. (b) As at December 31, 2017, the Company’s banks have issued letters of credit for $108.0 million (2016 - $83.7 million) of which $77.9 million (2016 - $69.5 million) is guaranteed by Export Development Canada, a Canadian government corporation. (c) As noted in note 3(d)( i ), satellite construction contracts may include performance incentives whereby payment for a portion of the purchase price of the satellite is contingent upon in-orbit performance of the satellite. The Company’s ultimate receipt of orbital performance incentives is subject to the continued performance of its satellites generally over the contractually stipulated life of the satellites. A complete or partial loss of a satellite’s functionality can result in loss of orbital receivable payments or repayment of amounts received by the Company under a warranty payback arrangement. The Company generally receives the present value of the orbital receivables if there is a launch failure or a failure caused by a customer error, but will forfeit some or all of the orbital receivables if the loss is caused by satellite failure or as a result of Company error. The Company recognizes orbital performance incentives in the financial statements based on the amounts that are expected to be received and believes that it will not incur a material loss relating to the incentives recognized. (d) In November 2017, certain purported former holders of DigitalGlobe series A convertible preferred stock and certain purported former holders of shares of DigitalGlobe common stock filed petitions for appraisal of the value of their purported holdings of DigitalGlobe common and preferred stock as of the date of the Company's acquisition of DigitalGlobe (note 9). DigitalGlobe is named as a respondent in the lawsuits, and filed answers to the lawsuits in December 2017. (e) The Company enters into agreements in the ordinary course of business with resellers and others. Most of these agreements require the Company to indemnify the other party against third-party claims alleging that one of its products infringes or misappropriates a patent, copyright, trademark, trade secret or other intellectual property right. Certain of these agreements require the Company to indemnify the other party against claims relating to property damage, personal injury or acts or omissions by the Company, its employees, agents or representatives. (f) From time to time, the Company has made guarantees regarding the performance of its systems to its customers. Some of these agreements do not limit the maximum potential future payments the Company could be obligated to make. The Company evaluates and estimates potential losses from such indemnification based on the likelihood that the future event will occur. To date, the Company has not incurred any material costs as a result of such obligations and has not accrued any liabilities related to such indemnification and guarantees in the consolidated financial statements. (g) The Company has entered into industrial cooperation agreements, sometimes referred to as offset agreements, as a condition to entering into contracts for its products and services from certain customers in foreign countries. These agreements are designed to return economic value to the foreign country and may be satisfied through activities that do not require a direct cash payment, including transferring technology, providing manufacturing, training and other consulting support to in-country projects. These agreements may provide for penalties in the event the Company fails to perform in accordance with offset requirements. The Company has historically not been required to pay any such penalties. (h) The Company is a party to various other legal proceedings and claims that arise in the ordinary course of business as either a plaintiff or defendant. The Company analyzes all legal proceedings and the allegations therein. The outcome of any of these other proceedings, either individually or in the aggregate, is not expected to have a material adverse effect on the Company’s financial position, results of operations or liquidity. |
Related party transactions
Related party transactions | 12 Months Ended |
Dec. 31, 2017 | |
Related party transactions | |
Related party transactions | 28. Related party transactions: The President and Chief Executive Officer and the Executive Vice President and Chief Financial Officer have employment agreements which provide severance and change of control benefits. Upon termination or change of control, these executives are entitled to lump sum payments between two and one-half and three years’ compensation. Compensation expense for the Company’s directors and Named Executive Officers is as follows: For the year ended December 31, 2017 2016 Salaries and other benefits $ 9.4 $ 8.2 Post-employment benefits 1.5 0.5 Share-based payments 5.2 16.8 $ 16.1 $ 25.5 In 2016, the Company recognized an executive compensation settlement of $14.2 million to its former President and Chief Executive Officer (note 8). |
Supplemental cash flow informat
Supplemental cash flow information | 12 Months Ended |
Dec. 31, 2017 | |
Supplemental cash flow information | |
Supplemental cash flow information | 29. Supplemental cash flow information: (a) Changes in operating assets and liabilities: For the year ended December 31, 2017 2016 Trade and other receivables $ 64.4 $ 45.7 Construction contract assets (40.1) 58.7 Financial assets, other 41.2 (45.0) Inventories 1.1 1.4 Current tax assets (37.4) (25.3) Non-financial assets 31.5 (4.0) Orbital receivables (5.8) (8.7) Trade and other payables (17.6) 22.4 Financial liabilities, other 4.7 (11.2) Provisions 11.8 (0.2) Construction contract liabilities (39.7) (147.9) Employee benefits (24.1) 3.0 Non-financial liabilities (32.5) (8.1) $ (42.5) $ (119.2) (b) Cash and cash equivalents on the consolidated statements of cash flows are comprised of the following: For the year ended December 31, 2017 2016 Cash and cash equivalents $ 19.1 $ 14.1 Bank overdraft — (17.9) $ 19.1 $ (3.8) (c) Acquisition of DigitalGlobe, net of cash acquired in the investing activities section of the consolidated statement of cash flows is comprised of the following: For the year ended December 31, 2017 Investing activities: Acquisition of DigitalGlobe $ (1,131.0) Repayment of DigitalGlobe long-term debt (1,266.0) Settlement of DigitalGlobe transaction costs (46.6) Cash acquired 170.6 $ (2,273.0) (d) Reconciliation of liabilities arising from financing activities: Obligations under Long-term Securitization finance Financial debt liability leases liabilities Total Balance as at January 1, 2017 $ 596.0 $ 121.2 $ 4.7 $ 5.2 $ 727.1 Changes from financing cash flows: Repayment of revolving loan facility and other long-term debt (421.4) — — — (421.4) Repayment of 2017 Term notes (100.0) — — — (100.0) Repayment of 2024 Term notes (256.3) — — — (256.3) Payments on finance leases — — (4.5) — (4.5) Interest paid on long-term debt (40.5) — — — (40.5) Settlement of securitization liability, including interest — (21.8) — — (21.8) Repayment of interest free government assistance — — — (1.0) (1.0) Total changes from financing cash flows (818.2) (21.8) (4.5) (1.0) (845.5) Issuance of long-term debt related to acquisition, net of financing fees (note 9) 3,096.7 — — — 3,096.7 The effect of changes in foreign exchange rates 4.7 — 0.4 0.3 5.4 Liability related changes: Amortization of financing fees 2.2 — — — 2.2 New finance leases — — 7.3 — 7.3 Finance leases acquired — — 10.6 — 10.6 Loss from early extinguishment of debt 20.4 — — — 20.4 Finance expense 40.4 6.9 0.3 0.3 47.9 Total liability related other changes 63.0 6.9 18.2 0.3 88.4 Balance as at December 31, 2017 $ 2,942.2 $ 106.3 $ 18.8 $ 4.8 $ 3,072.1 |
Subsequent event
Subsequent event | 12 Months Ended |
Dec. 31, 2017 | |
Subsequent event | |
Subsequent event | 30. Subsequent event: On February 22, 2018, the Company declared a quarterly dividend of C$0.37 per common share payable on March 29, 2018 to shareholders of record at the close of business on March 15, 2018. |
Significant accounting polici38
Significant accounting policies (Policies) | 12 Months Ended |
Dec. 31, 2017 | |
Significant accounting policies | |
Basis of consolidation | (a) Basis of consolidation: These consolidated financial statements include the accounts of the Company and all subsidiary entities which are controlled by the Company. All intercompany balances and transactions are eliminated on consolidation. |
Business combinations | (b) Business combinations: Business combinations are accounted for using the acquisition method. The consideration for an acquisition is measured at the fair values of the assets transferred, the liabilities assumed and the equity interests issued at the acquisition date. The excess of the consideration over the fair value of the identifiable net assets acquired is recorded as goodwill. Transaction costs that are incurred in connection with a business combination, other than costs associated with the issuance of debt or equity securities, are expensed as incurred. On an acquisition-by-acquisition basis, any non-controlling interest is measured either at fair value of the non-controlling interest or at the fair value of the proportionate share of the net assets acquired. Contingent consideration is measured at fair value on acquisition date and is included as part of the consideration transferred. The fair value of the contingent consideration liability is re-measured at each reporting date with the corresponding gain or loss being recognized in earnings. |
Foreign currency | (c) Foreign currency: The consolidated financial statements of the Company are presented in United States dollars. (i) Transactions in foreign currency: Each entity within the consolidated group records transactions using its functional currency, being the currency of the primary economic environment in which it operates. Foreign currency transactions are translated into the respective functional currency of each entity using the foreign currency rates prevailing at the date of the transaction. Period end balances of monetary assets and liabilities in foreign currency are translated to the respective functional currencies using period end foreign currency rates. Foreign currency gains and losses arising from settlement of foreign currency transactions are recognized in earnings. (ii) Foreign operations translation: The assets and liabilities of operations with a functional currency other than United States dollars are translated into United States dollars at period end foreign currency rates. Revenues and expenses of such operations are translated into United States dollars at average rates for the period. Foreign currency translation gains and losses are recognized in other comprehensive income. The relevant amount in cumulative foreign currency translation adjustment is reclassified into earnings upon disposition of a foreign operation. (iii) Hedges of net investments in foreign operations: Foreign exchange gains and losses arising from translation of a financial liability and foreign exchange forward contracts designated as hedges of net investments in foreign operations are recognized in other comprehensive income, to the extent that the hedges are effective. To the extent that the hedges are ineffective, the gains and losses are recognized in earnings. When the hedged portion of a net investment is disposed of, the relevant amount accumulated in other comprehensive income is transferred to earnings as part of the gain or loss on disposal. |
Revenue recognition | (d) Revenue recognition: Revenue is measured at the fair value of consideration received or receivable, net of discounts and after eliminating intercompany sales. When consideration received from customers includes advance payments that contain a financing element, the Company imputes interest on such advance payments and recognizes such amounts as a component of revenue. The Company’s contracts with customers may include multiple deliverables that fall within one or more of the revenue categories described below. Where revenue arrangements have separately identifiable components and the components are considered to have standalone value to the customer, the consideration received is allocated to each identifiable component and the applicable revenue recognition criteria are applied to each of the components. When separately identifiable components in a revenue arrangement are considered to not have standalone value, the applicable revenue recognition criteria are applied to the arrangement as a whole. In such situations, if the Company incurs contract costs prior to the commencement of the performance period of the contract, the costs are capitalized as deferred contract costs and are generally recognized as expense over the same period as the associated deferred revenue arising from upfront fees under the arrangement. (i) Construction contracts: A construction contract is a contract specifically negotiated for construction of an asset or a group of interrelated assets. Revenue from construction contracts includes initial contract amounts, variations in contract work, claims, incentive payments and the fair value of customer furnished materials. When the outcome of a construction contract can be measured reliably, revenue is recognized using the percentage of completion method based on contract costs incurred relative to total estimated contract costs or units delivered relative to total units, as appropriate in the circumstances. Construction contracts may be segmented into components which are accounted for separately or combined with other contracts to form a single contract for revenue and expense recognition purposes. When the outcome of a construction contract cannot be measured reliably, contract costs incurred are expensed as incurred and revenue is recognized only to the extent that costs are considered likely to be recoverable. If at the time of contract award or at any time during the life of a contract it becomes probable that total contract costs will exceed total contract revenue, the expected loss is recognized immediately in the statement of earnings. Satellite construction contracts may include performance incentives whereby payment for a portion of the purchase price is contingent upon in-orbit performance of the satellite. These performance incentives are structured in two forms. As a warranty payback, the customer pays the entire amount of the performance incentive during the period of the satellite construction and such incentives are subject to refund if satellite performance does not achieve certain predefined operating specifications. As an orbital receivable, the customer makes payment of performance incentives over the in-orbit life of the satellite. Performance incentives, whether warranty payback or orbital receivables, are included in revenue during the construction period based on amounts expected to be received. Orbital receivables are recorded at their fair value as of the launch date and the adjustments to the amount receivable of the discount during the in-orbit period are recorded as orbital income. The percentage of completion method places considerable importance on accurate estimates of the extent of progress towards completion. During the contractual period, revenue and costs may be impacted by estimates of total contract costs, remaining costs to completion, total contract revenues, contract risks and other judgments. Management continually reviews such estimates and adjusts them as necessary. The inception to date impact of changes in estimates of contract revenues or costs to complete is recognized in the period that the change is determined by management. When costs incurred plus recognized profit (less recognized losses) on a construction contract exceeds progress billings, the net amount is recorded as a construction contract asset. Conversely, when progress billings exceed costs incurred plus recognized profit (less recognized losses), the net amount is recorded as a construction contract liability. Construction contracts may have termination and default clauses. If a contract is terminated for convenience by a customer or due to a customer’s default, the company may be entitled to costs incurred plus a reasonable profit. (ii) Service contracts: Service contracts include contracts for rendering of services, including delivery or licensing of satellite imagery and imagery related products. Revenue from rendering of services is recognized by reference to the stage of completion based on services performed to date as a percentage of total services to be performed or on a straight-line basis over the term of the contract if revenue is determined to be earned evenly. The Company has various contracts with government and commercial customers that require the delivery of imagery and the provision of infrastructure support services. If the deliverables do not qualify as separate units of accounting, the Company recognizes the revenue for this single unit of accounting using a proportional performance method over the life of the contract which may coincide with the estimated life of the satellite. If the deliverables qualify as separate units of accounting, each element is accounted for separately and recognized as revenue over the relevant terms of the arrangement or the estimated useful life of the satellite being accessed. Revenue related to satellite access is recognized based on satellite capacity made available to the customer in a particular period compared to the total capacity to be made available over the term of the contract or as minutes are consumed by the customer as appropriate in the circumstances. Revenue from imagery licenses is typically recognized when the customer is able to directly download the imagery or upon delivery. Revenues related to online imagery subscriptions are recognized ratably over the subscription period. Revenue from the sale of certain services that include the supply of processed data or data products is recognized upon delivery. |
Earnings per common share | (e) Earnings per common share: Basic earnings per common share is computed by dividing net earnings by the sum of the weighted average number of common shares outstanding during the period plus outstanding deferred share units awards (see note 22(e)) but excluding issued, but unvested, restricted shares. Diluted earnings per common share is computed by adjusting the basic earnings per common share calculation, as described above, for the effects of all potentially dilutive share appreciation rights and restricted stock units (see notes 22(b) and 22(c)). The company calculates the effects of all potentially dilutive share appreciation rights using the treasury stock method unless they are anti-dilutive. Share appreciation rights are dilutive only when the average market value of the Company’s shares during the period are greater than the exercise price of the share appreciation rights. |
Research and development | (f) Research and development: Research costs are expensed in the period incurred. Development costs are capitalized and recorded as an intangible asset if technical feasibility has been established and it is considered probable that the Company will generate future economic benefits from the asset created on completion of development. The costs capitalized include materials, direct labour, directly attributable overhead expenditures and borrowing costs on qualifying assets. Other development costs are expensed in the period incurred. |
Government assistance and investment tax credits | (g) Government assistance and investment tax credits: Government assistance includes government grants, below-market rate of interest loans and investment tax credits and is recognized when there is reasonable assurance that the Company will comply with the relevant conditions and that the government assistance will be received. Government assistance that meets the recognition criteria and that relates to current expenses is recorded as a reduction of the related expenses in direct costs, selling, general and administration. Government assistance that meets the recognition criteria and that relates to the acquisition of an asset is recorded as a reduction of the cost of the related asset. If government assistance becomes repayable, the inception to date impact of assistance previously recognized in earnings is reversed immediately in the period that the assistance becomes repayable. The benefit of a government loan at a below-market rate of interest is treated as a government grant, measured as the difference between proceeds received and the fair value of the loan based on prevailing market interest rates. Investment tax credits, whether or not recognized in the financial statements, may be carried forward to reduce future Canadian Federal and Provincial income taxes payable. The Company applies judgment when determining whether the reasonable assurance threshold has been met to recognize investment tax credits in the financial statements. The Company must interpret eligibility requirements in accordance with Canadian income tax laws and must assess whether future taxable income will be available against which the investment tax credits can be utilized. For investment tax credits that have not met the criteria to be recognized in the financial statements, management continually reviews these interpretations and assessments and recognizes the investment tax credits relating to prior period expenses in the period when the reasonable assurance criteria have been met. Any changes in the interpretations and assessments could have an impact on the amount and timing of investment tax credits recognized in the financial statements. |
Finance income and finance expense | (h) Finance income and finance expense: Finance income is comprised of interest income and gains on disposals of available-for-sale assets. Interest income is recognized as it accrues in earnings, using the effective interest method. Finance expense is comprised of borrowing cost on debt, net interest expense on the net liability of defined benefit pension and other post-retirement benefits plans, interest expense on the orbital securitzation liability, and liability to dissenting shareholders, imputed interest on advance payments and other liabilities, and the cost of forward points from foreign exchange forward contracts. All finance costs are recognized in earnings using the effective interest method. Finance costs exclude borrowing costs attributable to the construction of qualifying assets, which are assets that take a substantial period of time to prepare for their intended use. Borrowing costs associated with qualifying assets are added to the cost of the related assets. |
Financial instruments | (i) Financial instruments: Financial assets and financial liabilities are initially measured at fair value and are subsequently re-measured based on their classification as described below. Transaction costs that are directly attributable to the acquisition or issuance of a financial asset or liability, other than financial assets and liabilities classified as at fair value through earnings, are added or deducted from the fair value of the respective financial asset or financial liability on initial recognition. Transaction costs that are directly attributable to the acquisition or issuance of a financial asset or financial liability classified as at fair value through earnings are recognized immediately in earnings. Financial assets and liabilities are offset and the net amount is reported in the balance sheet when there is a legally enforceable right to offset the recognized amounts and there is an intention to settle on a net basis or realize the asset and settle the liability simultaneously. ( i ) Financial assets are classified into the following categories: at fair value through earnings, loans and receivables, and available-for-sale. The classification depends on the nature and purpose of the financial asset and is determined at the time of initial recognition. · Financial assets at fair value through earnings Financial assets are classified as at fair value through earnings when held for trading or if designated into this category. Financial assets classified as financial assets at fair value through earnings include derivative financial instruments that are not included in a qualifying hedging relationship. Financial assets classified as financial assets as at fair value through earnings are measured at fair value with any gains or losses arising on re-measurement recognized in earnings. · Loans and receivables Loans and receivables include cash and cash equivalents, restricted cash, and non-derivative financial assets with fixed or determinable payments that are not quoted in an active market including trade and other receivables, orbital receivables, and notes receivable. Loans and receivables are initially measured at fair value and are subsequently re-measured at amortized cost using the effective interest method, less any impairment losses. · Available-for-sale financial assets Available-for-sale financial assets are non-derivative financial assets that are either designated in this category or not classified into any of the other categories and include short-term and long-term investments. Available-for-sale financial assets are measured at fair value with any gains or losses on re-measurement recognized in other comprehensive income until the financial asset is derecognized or is determined to be permanently impaired, at which time the gain or loss accumulated in equity is transferred to earnings. Investments in equity instruments that are not quoted in an active market and whose fair value cannot be reliably measured are carried at cost. Financial assets are derecognized when the rights to receive cash flows from the assets have expired or have been transferred, either outright or through a qualifying pass-through arrangement, and the Company has transferred substantially all of the risk and rewards of ownership of the asset. When the Company retains substantially all of the risks and rewards of transferred assets, the transferred assets are not derecognized and remain on the consolidated balance sheet. When the Company neither retains nor transfers substantially all risks and rewards of ownership of the assets, the Company derecognizes the assets if control over the assets is relinquished. If the Company retains control over transferred assets, the Company continues to recognize the transferred assets to the extent of its continuing involvement in the assets. Management assesses these criteria using the balance of facts and circumstances of each individual arrangement and applies considerable judgment when making these assessments, particularly when determining whether substantially all the risks and rewards of ownership of the financial assets have been transferred. Any changes to the conclusions of these assessments could have a material impact on the consolidated financial statements. (ii) Financial liabilities: Financial liabilities are classified as either financial liabilities at fair value through earnings or as other financial liabilities. · Financial liabilities at fair value through earnings Financial liabilities are classified at fair value through earnings when held for trading or if designated into this category. Financial liabilities classified as financial liabilities at fair value through earnings include derivative financial instruments that are not included in a qualifying hedging relationship and are measured at fair value with any gains or losses arising on re-measurement recognized in earnings. · Other financial liabilities Other financial liabilities include bank overdraft, trade and other payables, non-trade payables, contingent liabilities, securitization liability, long-term debt and are initially measured at fair value and are subsequently measured at amortized cost using the effective interest method. (iii) Derivative financial instruments and hedging activities: The Company uses derivative financial instruments to manage risk associated with foreign currency rates. Derivative financial instruments are measured at fair value. When derivative financial instruments are designated in a qualifying hedging relationship and hedge accounting is applied, the effectiveness of the hedges is measured at the end of each reporting period and the effective portion of changes in fair value is recognized in other comprehensive income and any ineffective portion is recognized immediately in earnings. For foreign exchange forward contracts used to manage risk associated with foreign currency rates, amounts are transferred from accumulated other comprehensive income to revenue or direct costs, selling, general and administration when the underlying transaction affects earnings. For foreign exchange contracts not in a qualifying hedging relationship, changes in fair value are recognized immediately in earnings as a foreign exchange gain or loss. Hedge accounting is discontinued when the hedging instrument expires or is sold, terminated, exercised or no longer qualifies for hedge accounting. At that time, if the forecasted transaction within a cash flow hedge remains probable, any cumulative gain or loss on the hedging instrument recognized in other comprehensive income is retained in equity until the forecasted transaction occurs. If the forecasted transaction is no longer expected to occur, the net cumulative gain or loss previously recognized in other comprehensive income is transferred to earnings. (iv) Embedded derivatives: The Company has embedded foreign currency derivatives in certain customer and supplier contracts. These derivatives are accounted for as separate instruments and are measured at fair value at each reporting date. Changes in fair value are recognized in earnings as foreign exchange gains or losses. |
Cash and cash equivalents | (j) Cash and cash equivalents: Cash and cash equivalents is comprised of cash on hand, cash balances with banks and similar institutions and term deposits redeemable within three months or less from date of acquisition with banks and similar institutions. |
Investments | (k) Investments: (i) Short-term investments: Short-term investments consist of mutual funds and financial instruments purchased with a term to maturity at inception between three months and one year. (ii) Long-term investments: Long-term investments consist of unquoted equity instruments in which the Company does not have significant influence and the fair value of which cannot be reliably measured. |
Inventories | (l) Inventories: Inventories are measured at the lower of cost and net realizable value and consist primarily of parts and subassemblies used in the manufacturing of satellites. The cost of inventories is determined on a first-in-first-out basis or weighted average cost basis, depending on the nature of the inventory. Net realizable value is the estimated selling price in the ordinary course of business, less the estimated costs of completion and selling expense. |
Property, plant and equipment | (m) Property, plant and equipment: Property, plant and equipment are measured at cost less accumulated depreciation and accumulated impairment losses. Cost for satellite assets includes amounts related to design, construction, launch and commissioning. Cost for ground system assets includes amounts related to construction and testing. Borrowing costs are capitalized on certain qualifying assets that take a substantial period of time to prepare for their intended use. When the costs of certain components of an item of property, plant and equipment are significant in relation to the total cost of the item and the components have different useful lives, they are accounted for and depreciated separately. Property, plant and equipment under construction are measured at cost less any accumulated impairment losses. Depreciation expense is recognized in earnings on a straight-line basis over the estimated useful life of the related asset to its residual value. Expected useful lives and depreciation methods are reviewed annually. Land is not depreciated. The estimated useful lives are as follows: Estimated useful life Land improvements years Buildings to years Leasehold improvements lesser of useful life or term of lease Equipment: Test and other equipment to years Vehicles to years Thermal vacuum chambers to years Satellites to years Furniture and fixtures to years Computer hardware to years |
Leased assets | (n) Leased assets: Leased assets for which the Company assumes substantially all the risks and rewards of ownership are classified as finance leases. Upon initial recognition, the leased asset is measured at an amount equal to the lower of its fair value and the present value of the minimum lease payments. The asset is depreciated over the shorter of the lease term or its estimated useful life. All other leases are considered operating leases and the payments, including lease incentives, are recognized in earnings on a straight-line basis over the term of the lease. |
Intangible assets and goodwill | (o) Intangible assets and goodwill: (i) Intangible assets: Intangible assets with finite lives consist of acquired and internally developed technologies and software, licenses, customer relationships, trademarks, trade names, non-compete agreements, image library, and backlog. Intangible assets with finite lives are amortized on a straight-line basis over their estimated useful lives and are measured at cost less accumulated amortization and accumulated impairment losses. Intangible assets with finite lives are currently amortized over the following periods: Estimated useful life Customer relationships to years Backlog to 5 years Technologies to years Software to years Trade names years Trademarks to years Image library years Licenses years Non-compete agreements 2 years At December 31, 2017 and 2016, the Company did not have any indefinite life intangible assets. (ii) Goodwill: Goodwill is not amortized but is tested for impairment annually or whenever there is an indication of impairment. Goodwill is measured at cost less accumulated impairment losses. |
Impairment | (p) Impairment: (i) Financial assets: Financial assets not carried at fair value through earnings are assessed for impairment at each reporting date. A financial asset is impaired if objective evidence indicates that a loss event which negatively affected the estimated future cash flows has occurred after the initial recognition of the asset. Management uses judgment when identifying and assessing objective evidence that may indicate a loss event and when estimating the potential impact on the carrying value of accounts receivable, notes receivable, orbital receivables, and other financial assets. For financial assets measured at amortized cost, the impairment loss is the difference between the carrying amount and the present value of the estimated future cash flows, discounted at the original effective interest rate. If an impairment has occurred, the carrying amount of the asset is reduced, with the amount of the loss recognized in earnings. A permanent impairment loss for an available-for-sale investment is recognized by transferring the cumulative loss previously recognized in other comprehensive income to earnings. (ii) Goodwill and non-financial assets: Goodwill and non-financial assets are tested for impairment annually, or whenever events or changes in circumstances indicate that an asset’s carrying amount may be less than its recoverable amount. Management uses judgment to estimate the inputs to these assessments including cash flow projections, discount rates and tax rates, and any changes to these inputs could have a material impact on the impairment calculation. For impairment testing, non-financial assets that do not generate independent cash flows are grouped together into a cash-generating unit ("CGU"), which represent the level at which largely independent cash flows are generated. Goodwill is allocated to groups of CGUs based on the level at which it is monitored for internal reporting purposes. An impairment loss is recognized in earnings to the extent that the carrying value of an asset, CGU or group of CGUs exceeds its estimated recoverable amount. The recoverable amount of an asset, CGU or group of CGUs is the greater of its value in use and its fair value less cost to sell. Value in use is calculated as the present value of the estimated future cash flows discounted at appropriate discount rates. An impairment loss relating to a specific asset reduces the carrying value of the asset. An impairment loss relating to a CGU or group of CGUs reduces the carrying value of the goodwill allocated to the CGU or group of CGUs, then reduces the carrying value of the other assets of the CGU or group of CGUs on a pro-rata basis. An impairment loss in respect of goodwill is not reversed. A previously recognized impairment loss related to other non-financial assets is assessed at each reporting date for any indications that the loss has decreased or no longer exists. An impairment loss related to other non-financial assets is reversed if there is a subsequent increase in recoverable amount. An impairment loss is reversed only to the extent that the asset’s carrying value does not exceed the carrying value that would have been determined, net of depreciation or amortization, if no impairment loss had been recognized. |
Provisions | (q) Provisions: Provisions are recognized if, as a result of a past event, the Company has a present legal or constructive obligation that can be estimated reliably, and it is probable that an outflow of resources will be required to settle the obligation. Provisions are determined by discounting expected future cash outflows at a pre-tax rate that reflects current market assessments of the time value of money and the risks specific to the liability. Management uses judgment to estimate the amount, timing and probability of the liability based on facts known at the reporting date. The unwinding of the discount is recognized as finance expense. (i) Warranty and after-sale service costs: A provision for warranty and after-sale service costs is recognized when the underlying product or service is sold and when the recognition criteria described above have been met. Warranty and after-sale service provisions are based on management’s best estimate of the expected obligation using historical warranty data and experience. Warranty and after-sale service provisions related to products and services delivered under construction contracts are included in the estimated total costs to complete when applying the percentage of completion method of revenue recognition. (ii) Restructuring costs: A provision for restructuring costs is recognized when the Company has approved a detailed and formal restructuring plan, and the restructuring either has commenced or has been announced publicly. Future operating losses are excluded from the provision. (iii) Others: A provision for onerous contracts, excluding construction contracts (see note 3(d)( i )), is recognized when the unavoidable costs of meeting the obligations under the contract exceed the economic benefits expected to be received from the contract. The provision is measured at the present value of the lower of the expected cost of terminating the contracts and the expected net cost of continuing with the contract. A provision for decommissioning liabilities is recognized at the time of asset acquisition. Decommissioning liabilities are added to the carrying value of the related asset and are depreciated over the asset’s estimated useful life. |
Employee benefits | (r) Employee benefits: (i) Defined benefit pension plans and other post-retirement benefit plans: The Company maintains defined benefit plans for some of its employees. The Company’s net obligation in respect of defined benefit plans is calculated separately for each plan by estimating the amount of future benefit that employees have earned in the current and prior periods, discounting that amount and deducting the fair value of any plan assets. The calculation of defined benefit obligations is performed annually by qualified actuaries using the projected unit credit method, which takes into account the expected salary increases as the basis for future benefit increases for the pension plans. The discount rate is the yield at the reporting date on high quality corporate bonds that have maturity dates approximating the terms of the Company’s obligations and that are denominated in the same currency in which the benefits are expected to be paid. Actuarial assumptions for discount rates, expected salary increases and the projected age of employees upon retirement reflect historical experience and the Company’s assessment of future expectations. When the calculation results in a benefit to the Company, the recognized asset is limited to the present value of economic benefits available in the form of any future refunds from the plan or reductions in future contributions to the plan. In order to calculate the present value of economic benefits for a particular plan, consideration is given to any minimum funding requirements that apply to that particular plan. An economic benefit is available to the Company if it is realizable during the life of the plan, or on settlement of the plan liabilities. Re-measurements of the net defined benefit liability, which comprise actuarial gains and losses, the return on plan assets (excluding amounts included in net interest expense) and the effect of the asset ceiling (if any, excluding interest), are recognized immediately in other comprehensive income. The Company determines the net interest expense (income) on the net defined benefit liability (asset) for the period by applying the discount rate used to measure the defined benefit obligation at the beginning of the annual period to the net defined benefit liability (asset), taking into account any changes in the net defined benefit liability (asset) during the period as a result of contributions and benefit payments. Net interest expense is recognized as a component of finance expense. The Company recognizes service cost and administrative expenses relating to defined benefit plans as a component of direct costs, selling, general and administrative expense. When the benefits of a plan are changed or when a plan is curtailed, the resulting change in the net benefit liability that relates to past service or the gain or loss on curtailment is recognized immediately in earnings. The Company recognizes gains or losses on the settlement of a defined benefit plan when settlement occurs. (ii) Termination benefits: Termination benefits are expensed when the Company has demonstrably committed, without realistic possibility of withdrawal, to a formal detailed plan to either terminate employment before the normal retirement date, or to provide termination benefits as a result of an offer made to encourage voluntary redundancy. Termination benefits for voluntary redundancies are expensed if the Company has made an offer of voluntary redundancy, it is probable that the offer will be accepted and the number of acceptances can be estimated reliably. (iii) Defined contribution pension plans: The Company also maintains defined contribution plans for some of its employees whereby the Company pays contributions based on a percentage of the employees’ annual salary. Obligations for contributions to defined contribution pension plans are recognized as an employee benefit expense in the statement of earnings as the services are provided. |
Share-based compensation plans | (s) Share-based compensation plans: The Company maintains a number of share-based compensation plans for certain employees and directors that may be settled with cash and/or equity. For certain share-based compensation plans, the Company has the ability to mandate equity settlement by issuing shares from treasury. Share-based compensation plans are measured at fair value using the Black-Scholes option pricing model and the fair value is expensed on a straight-line basis over the vesting period. Management uses judgment to determine the inputs to the Black-Scholes option pricing model including the expected plan lives, underlying share price volatility and forfeiture rates. Volatility is estimated by considering the Company’s historic share price volatility over similar periods to the expected life of the awards under consideration. Changes in these assumptions will impact the calculation of fair value and the amount of compensation expense recognized in earnings. The fair value of cash-settled plans is recognized as a liability in the consolidated balance sheet and is re-measured and charged to earnings at each reporting date until the award is settled. The fair value of equity-settled plans is recognized in contributed surplus as part of equity in the consolidated balance sheet. Equity-settled plans are measured based on the grant date fair value of the award including the impact of estimated forfeitures and are not re-measured. |
Income taxes | (t) Income taxes: Income tax expense is comprised of current and deferred tax. Current tax and deferred tax are recognized into earnings except to the extent that it arises in a business combination, or items recognized directly in other comprehensive income. Current tax is the expected tax payable or receivable on the taxable income or loss for the year, using tax rates enacted or substantively enacted at the reporting date, and any adjustment to tax payable in respect of previous years. Deferred tax is recognized in respect of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for taxation purposes. Deferred tax is not recognized for the following temporary differences: the initial recognition of assets or liabilities in a transaction that is not a business combination and that affects neither accounting nor taxable earnings, and differences relating to investments in subsidiaries and jointly controlled entities to the extent that it is probable that they will not reverse in the foreseeable future. In addition, deferred tax is not recognized for taxable temporary differences arising on the initial recognition of goodwill. Deferred tax is measured at the tax rates that are expected to be applied to temporary differences when they reverse, based on the laws that have been enacted or substantively enacted by the reporting date. Deferred tax assets and liabilities are offset if there is a legally enforceable right to offset current tax liabilities and assets, and they relate to income taxes levied by the same tax authority on the same taxable entity, or on different tax entities, but they intend to settle current tax liabilities and assets on a net basis or their tax assets and liabilities will be realized simultaneously. Deferred tax assets are recognized for unused tax losses, tax credits and deductible temporary differences, to the extent that it is probable that future taxable profits will be available against which they can be utilized. Deferred tax assets are reviewed at each reporting date and are reduced to the extent that it is no longer probable that the related tax benefit will be realized. |
Adoption of new standards | u) Adoption of new standards: On January 1, 2017, the Company adopted amendments to IAS 7 - Statement of Cash Flows. The amendments require disclosures that enable users of the financial statements to evaluate changes in liabilities arising from financing activities, including both changes arising from cash flow and non-cash changes. The amendments to IAS 7 were applied prospectively and resulted in changes to presentation and disclosure in the Company’s notes to consolidated financial statements, but otherwise did not have a significant impact on the Company’s consolidated financial statements (note 29(d)). |
Significant accounting polici39
Significant accounting policies (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Significant accounting policies | |
Summary of useful lives of property, plant and equipment | Estimated useful life Land improvements years Buildings to years Leasehold improvements lesser of useful life or term of lease Equipment: Test and other equipment to years Vehicles to years Thermal vacuum chambers to years Satellites to years Furniture and fixtures to years Computer hardware to years |
Summary of useful lives of intangible assets | Estimated useful life Customer relationships to years Backlog to 5 years Technologies to years Software to years Trade names years Trademarks to years Image library years Licenses years Non-compete agreements 2 years |
Revenue and segmented informa40
Revenue and segmented information (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Revenue and segmented information | |
Schedule of operating performance of reporting segments | Space Corporate and Year ended December 31, 2017 Systems Imagery Services eliminations Total Revenues: External revenue $ 1,259.6 $ 228.4 $ 143.2 $ — $ 1,631.2 Intersegment eliminations 10.2 1.7 1.4 (13.3) — 1,269.8 230.1 144.6 (13.3) 1,631.2 Segment earnings: Adjusted EBITDA 231.9 147.6 23.4 (24.2) 378.7 Depreciation and amortization 40.6 40.6 5.9 0.6 87.7 191.3 107.0 17.5 (24.8) 291.0 Capital expenditures: Property, plant and equipment 51.4 4.7 2.0 0.2 58.3 Intangible assets 64.3 22.0 0.2 0.2 86.7 115.7 26.7 2.2 0.4 145.0 Space Corporate and Year ended December 31, 2016 Systems Imagery Services eliminations Total Revenues: External revenue $ 1,417.2 $ 41.0 $ 99.3 $ — $ 1,557.5 Intersegment eliminations 3.6 0.8 0.4 (4.8) — 1,420.8 41.8 99.7 (4.8) 1,557.5 Segment earnings: Adjusted EBITDA 246.0 22.4 20.3 (21.1) 267.6 Depreciation and amortization 41.3 0.2 3.4 0.1 45.0 204.7 22.2 16.9 (21.2) 222.6 Capital expenditures: Property, plant and equipment 39.2 0.3 0.9 1.2 41.6 Intangible assets 59.7 — 1.4 0.4 61.5 98.9 0.3 2.3 1.6 103.1 |
Schedule of reconciliation to earnings (loss) before income taxes | For the year ended December 31, 2017 2016 Segment earnings $ 291.0 $ 222.6 Amortization of acquisition related intangible assets 79.4 32.4 Foreign exchange differences (11.5) 2.8 Share-based compensation expense (note 22(f)) 57.9 14.7 Other expense (note 8) 119.4 5.9 Earnings before interest and taxes 45.8 166.8 Finance income (1.3) (0.3) Finance expense 82.5 37.6 Earnings (loss) before income taxes $ (35.4) $ 129.5 |
Schedule of primary sources of revenue | For the year ended December 31, 2017 2016 Construction contracts $ 1,183.2 $ 1,342.4 Service contracts 448.0 215.1 $ 1,631.2 $ 1,557.5 |
Schedule of revenue based on geographic location of customer | For the year ended December 31, 2017 2016 Revenue: United States $ 743.8 $ 447.2 Canada 329.9 424.4 Asia 295.3 311.9 Europe 207.1 284.5 Australia 29.6 29.7 South America 16.7 58.1 Other 8.8 1.7 $ 1,631.2 $ 1,557.5 |
Schedule of revenue from significant customers | For the year ended December 31, 2017 2016 Commercial: Customer 1 $ 119.9 $ 197.1 Government: Canadian Federal Government and agencies $ 194.3 $ 212.3 U.S. Federal Government and agencies 293.8 97.5 |
Schedule of non-current non-financial assets, property, plant and equipment, intangible assets and goodwill located geographically | December 31, December 31, 2017 2016 United States $ 5,103.5 $ 1,268.2 Canada 142.7 126.9 Europe 0.2 0.2 $ 5,246.4 $ 1,395.3 |
Expenses by nature (Tables)
Expenses by nature (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Expenses by nature | |
Schedule of operating expenses by nature | For the year ended December 31, 2017 2016 Employee salaries and benefits $ 595.4 $ 549.2 Costs related to defined benefit plans (note 18(b)&(c)) (19.3) 0.3 Costs related to defined contribution plans (note 18(f)) 16.7 14.5 Inventories used 103.5 128.8 Subcontractor costs relating to construction and service contracts 342.8 380.8 Materials, equipment, professional fees, travel and other 215.4 215.5 Direct costs, selling, general and administration 1,254.5 1,289.1 Depreciation and amortization 167.1 77.4 Foreign exchange loss (gain) (13.5) 3.6 Share-based compensation expense (note 22(f)) 57.9 14.7 Other expense (note 8) 119.4 5.9 $ 1,585.4 $ 1,390.7 |
Finance expense (Tables)
Finance expense (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Finance expense | |
Schedule of finance expense | For the year ended December 31, 2017 2016 Finance expense: Interest expense on long-term debt $ 57.7 $ 26.2 Interest expense on defined benefit pension and other post-retirement benefit obligations (note 18(b)&(c)) 9.2 9.5 Interest expense on orbital securitization liability (note 14) 7.8 1.6 Interest expense on advance payments 7.9 — Capitalization of borrowing costs (notes 16(a)) (4.9) (2.8) Imputed interest and other 4.8 3.1 $ 82.5 $ 37.6 |
Other expense (Tables)
Other expense (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Other expense | |
Schedule of other expense | For the year ended December 31, 2017 2016 Acquisition related expense (note 9) $ 59.9 $ — Restructuring and enterprise improvement costs 36.5 3.6 Loss from early extinguishment of debt 23.0 — Executive compensation settlement — 2.3 $ 119.4 $ 5.9 |
Business combination (Tables)
Business combination (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Business combination | |
Schedule of fair value of consideration transferred and the preliminary estimated fair values of assets acquired and liabilities assumed | October 5, 2017 Cash paid $ 1,131.0 Shares issued 1,063.4 Merger consideration to be settled 3.1 Liability to dissenting shareholders 114.9 Issuance of replacement equity-settled awards 15.8 Purchase consideration 2,328.2 Assets Cash and cash equivalents $ 170.6 Trade and other receivables 142.2 Financial assets, other 13.4 Current tax assets 0.1 Non-financial assets 93.4 Property, plant and equipment 695.8 Definite life intangible assets 1,439.8 2,555.3 Liabilities Trade and other payables $ 83.2 Current tax liabilities 2.7 Provisions 1.4 Employee benefits 29.1 Non-financial liabilities 354.0 Deferred tax liabilities 149.6 Long-term debt 1,276.0 1,896.0 Fair value of net identifiable assets acquired 659.3 Goodwill $ 1,668.9 |
Trade and other receivables (Ta
Trade and other receivables (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Trade and other receivables | |
Trade and other receivables | December 31, December 31, 2017 2016 Trade accounts receivable, net $ 273.1 $ 175.9 Orbital receivables, current portion (note 14) 30.0 27.1 Other 45.1 28.1 $ 348.2 $ 231.1 |
Financial assets and liabilit46
Financial assets and liabilities, other (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Financial assets and liabilities, other | |
Schedule of financial assets, other | December 31, December 31, 2017 2016 Restricted cash $ 23.0 $ 25.2 Long-term investments 27.5 24.4 Short-term investments 0.8 5.8 Notes receivable 20.3 52.4 Derivative financial instruments 12.5 17.8 84.1 125.6 Current portion (16.3) (64.7) $ 67.8 $ 60.9 |
Schedule of financial liabilities, other | December 31, December 31, 2017 2016 Non-trade payables $ 23.8 $ 18.0 Derivative financial instruments 8.9 14.7 32.7 32.7 Current portion (18.9) (17.3) $ 13.8 $ 15.4 |
Maturities of certain current47
Maturities of certain current assets and liabilities (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Maturities of certain current assets and liabilities | |
Schedule of maturities of certain current assets and liabilities | Due within Due after December 31, 2017 one year one year Total Construction contract assets $ 104.5 $ 23.8 $ 128.3 Inventories 52.0 44.5 96.5 Non-financial assets 110.9 14.3 125.2 Non-financial liabilities 209.2 — 209.2 Construction contract liabilities 243.3 15.6 258.9 Due within Due after December 31, 2016 one year one year Total Construction contract assets $ 85.3 $ — $ 85.3 Inventories 64.1 33.5 97.6 Non-financial assets 100.5 23.7 124.2 Non-financial liabilities 12.9 — 12.9 Construction contract liabilities 282.4 10.6 293.0 |
Non-financial assets and liab48
Non-financial assets and liabilities (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Non-financial assets and liabilities | |
Schedule of non financial assets and liabilities | (a) Non-financial assets: December 31, December 31, 2017 2016 Advances to suppliers $ 81.5 $ 110.3 Prepaid expenses 60.0 18.1 Deferred contract costs 20.0 — Equity investment in joint ventures 27.4 — 188.9 128.4 Current portion (125.2) (124.2) $ 63.7 $ 4.2 (b) Non-financial liabilities: December 31, December 31, 2017 2016 Deferred revenue $ 340.9 $ 11.9 Lease inducements 35.4 4.3 Lease liability acquired 6.7 9.9 Other 2.6 2.6 385.6 28.7 Current portion (209.2) (12.9) $ 176.4 $ 15.8 |
Orbital receivables (Tables)
Orbital receivables (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Orbital receivables | |
The schedule of expected timing of billing and collection of orbital receivables relating to launched and unlaunched satellites | Carrying value Launched Unlaunched Total 2018 $ 30.0 $ — $ 30.0 2019 29.1 0.3 29.4 2020 35.7 1.7 37.4 2021 38.8 3.7 42.5 2022 41.8 5.9 47.7 Thereafter 219.2 48.0 267.2 Orbital receivables 394.6 59.6 454.2 Current portion (note 10) (30.0) — (30.0) December 31, 2017 $ 364.6 $ 59.6 $ 424.2 Orbital receivables $ 367.9 $ 77.6 $ 445.5 Current portion (note 10) (27.1) — (27.1) December 31, 2016 $ 340.8 $ 77.6 $ 418.4 |
The schedule of expected timing of total contractual cash flows for all launched and unlaunched satellites including principal and interest payments | Total 2018 $ 57.8 2019 60.2 2020 65.8 2021 66.6 2022 71.3 Thereafter 466.7 $ 788.4 |
Property, plant and equipment (
Property, plant and equipment (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Property, plant and equipment | |
Schedule of property plant and equipment | Land and Leasehold Furniture Computer buildings improvements Equipment Satellites and fixtures hardware Total Cost Balance as at December 31, 2015 $ 191.0 $ 31.7 $ 232.2 $ — $ 7.4 $ 43.9 $ 506.2 Additions 3.0 15.2 15.3 — 1.9 6.2 41.6 Disposals — (0.2) (0.6) — (0.1) (1.8) (2.7) Foreign currency translation 0.4 0.5 0.7 — 0.2 0.9 2.7 Balance as at December 31, 2016 194.4 47.2 247.6 — 9.4 49.2 547.8 Acquired from business combination (note 9) 0.5 42.0 35.0 577.9 1.2 39.2 695.8 Additions 2.3 15.7 24.9 6.3 0.3 8.8 58.3 Disposals — (0.1) (0.3) — — (1.7) (2.1) Foreign currency translation 1.0 1.0 1.4 — 0.3 2.8 6.5 Balance as at December 31, 2017 $ 198.2 $ 105.8 $ 308.6 $ 584.2 $ 11.2 $ 98.3 $ 1,306.3 Accumulated depreciation Balance as at December 31, 2015 $ 11.1 $ 17.2 $ 89.0 $ — $ 5.1 $ 32.5 $ 154.9 Depreciation expense 4.0 3.2 21.8 — 0.7 4.3 34.0 Disposals — (0.2) (0.5) — (0.1) (1.8) (2.6) Foreign currency translation 0.1 0.2 0.4 — 0.1 0.7 1.5 Balance as at December 31, 2016 15.2 20.4 110.7 — 5.8 35.7 187.8 Depreciation expense 4.3 4.2 22.9 21.8 0.8 7.1 61.1 Disposals — (0.1) (0.2) — — (1.7) (2.0) Foreign currency translation 0.3 0.7 1.4 — 0.2 1.9 4.5 Balance as at December 31, 2017 $ 19.8 $ 25.2 $ 134.8 $ 21.8 $ 6.8 $ 43.0 $ 251.4 Net book value December 31, 2017 $ 178.4 $ 80.6 $ 173.8 $ 562.4 $ 4.4 $ 55.3 $ 1,054.9 December 31, 2016 $ 179.2 $ 26.8 $ 136.9 $ — $ 3.6 $ 13.5 $ 360.0 |
Schedule of assets under finance leases | December 31, December 31, 2017 2016 Computer hardware $ 5.2 $ 4.6 Furniture and fixtures 7.2 0.1 $ 12.4 $ 4.7 |
Satellites | |
Property, plant and equipment | |
Schedule of property plant and equipment | Satellites Satellites under As at December 31, 2017 in-orbit construction Total Cost $ 569.0 $ 15.2 $ 584.2 Accumulated depreciation (21.8) — (21.8) Net book value $ 547.2 $ 15.2 $ 562.4 |
Intangible assets and goodwill
Intangible assets and goodwill (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Intangible assets and goodwill | |
Schedule of finite lived intangible assets | Technologies, including Trademarks Customer development and relationships Backlog in-process Software trade names Other(1) Total Cost Balance as at December 31, 2015 $ 13.9 $ — $ 251.2 $ 110.1 $ 67.4 $ 9.0 $ 451.6 Purchase of intangible assets — — — 12.3 — — 12.3 Development of intangible assets — — 49.2 — — — 49.2 Disposals — — (1.2) (0.5) — — (1.7) Foreign currency translation — — — 0.4 — 0.2 0.6 Balance as at December 31, 2016 13.9 — 299.2 122.3 67.4 9.2 512.0 Acquired from business combination (note 9) 608.2 331.0 317.8 46.0 36.8 100.0 1,439.8 Purchase of intangible assets — — — 30.7 — — 30.7 Development of intangible assets — — 56.0 — — — 56.0 Disposals — — — (0.2) — — (0.2) Foreign currency translation 0.1 — — 2.5 — 0.5 3.1 Balance as at December 31, 2017 $ 622.2 $ 331.0 $ 673.0 $ 201.3 $ 104.2 $ 109.7 $ 2,041.4 Accumulated amortization Balance as at December 31, 2015 $ 3.7 $ — $ 61.3 $ 55.8 $ 10.7 $ 6.7 $ 138.2 Amortization Expense 1.1 — 24.0 14.3 3.4 0.7 43.5 Disposals — — (1.3) (0.5) — — (1.8) Foreign currency translation — — — 0.4 — 0.1 0.5 Balance as at December 31, 2016 4.8 — 84.0 70.0 14.1 7.5 180.4 Amortization expense 11.5 23.3 39.1 17.0 4.3 10.8 106.0 Disposals — — — (0.2) — — (0.2) Foreign currency translation 0.1 — — 1.3 — 0.4 1.8 Balance as at December 31, 2017 $ 16.4 $ 23.3 $ 123.1 $ 88.1 $ 18.4 $ 18.7 $ 288.0 Net book value December 31, 2017 $ 605.8 $ 307.7 $ 549.9 $ 113.2 $ 85.8 $ 91.0 $ 1,753.4 December 31, 2016 $ 9.1 $ — $ 215.2 $ 52.3 $ 53.3 $ 1.7 $ 331.6 (1) Other intangible assets is comprised of the following finite life intangible assets: licenses, image library and non-compete agreements. |
Schedule of reconciliation of changes in goodwill | Space Systems Imagery Services Total Balance as at December 31, 2015 $ 622.8 $ 26.8 $ 47.4 $ 697.0 Foreign currency translation 2.3 0.2 — 2.5 Balance as at December 31, 2016 625.1 27.0 47.4 699.5 Goodwill on acquisition of DigitalGlobe (note 9) 142.9 1,399.8 126.2 1,668.9 Foreign currency translation 5.6 0.4 — 6.0 Balance as at December 31, 2017 $ 773.6 $ 1,427.2 $ 173.6 $ 2,374.4 |
Schedule of key assumptions used in performing the impairment test | Perpetual Segment Valuation method Discount rate growth rate Space Systems Value in use 7.5 % 2.0 % Imagery Value in use 10.3 % 2.0 % Services Value in use 10.3 % 3.0 % |
Provisions (Tables)
Provisions (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Provisions | |
Schedule of warranty and after sale service, restructuring costs and other Provisions | Warranty Liability to and after- Restructuring dissenting sale service (a) costs (b) shareholders (c) Others (d) Total Balance as at December 31, 2015 $ 28.7 $ 6.4 $ — $ 3.0 $ 38.1 Provisions made 6.8 3.7 — — 10.5 Provisions used (2.1) (8.5) — (0.6) (11.2) Provisions reversed — (0.1) — — (0.1) Unwinding of discount 0.4 — — 0.2 0.6 Foreign currency translation — — — — — Balance as at December 31, 2016 $ 33.8 $ 1.5 $ — $ 2.6 $ 37.9 Provisions made 7.2 13.7 118.3 4.6 143.8 Provisions acquired — — — 1.4 1.4 Provisions used (2.0) (12.7) — (0.9) (15.6) Provisions reversed — (0.2) — — (0.2) Unwinding of discount 0.4 — — 0.1 0.5 Foreign currency translation — — — 0.2 0.2 Balance as at December 31, 2017 $ 39.4 $ 2.3 $ 118.3 $ 8.0 $ 168.0 December 31, 2017: Current $ 3.6 $ 2.3 $ 1.6 $ 1.2 $ 8.7 Non-current 35.8 — 116.7 6.8 159.3 $ 39.4 $ 2.3 $ 118.3 $ 8.0 $ 168.0 December 31, 2016: Current $ 3.2 $ 1.5 $ — $ — $ 4.7 Non-current 30.6 — — 2.6 33.2 $ 33.8 $ 1.5 $ — $ 2.6 $ 37.9 (a) Warranty and after-sale service provisions relate to obligations under commercial satellite construction contracts. (b) Restructuring provisions relate to costs associated with enterprise improvement initiatives for satellite manufacturing operations. (c) Liability to dissenting shareholders is related to the estimated amount owed to dissenting shareholders, including those shareholders who subsequently withdrew their dissent, of the DigitalGlobe transaction including interest (see notes 9&27(d)). (d) Other provisions relate to obligations under premise leases and restoration costs for premise leases with terms that expire between 2019 and 2023. |
Employee benefits (Tables)
Employee benefits (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Employee benefits | |
Schedule of employee benefit liabilities | December 31, December 31, 2017 2016 Salary and benefits payable $ 112.7 $ 80.7 Share-based payment plans 13.7 5.3 Pension and other post-retirement benefits 215.1 241.5 Employee benefits 341.5 327.5 Current portion (123.9) (89.4) $ 217.6 $ 238.1 |
Schedule of plan assets | December 31, December 31, 2017 2016 Cash and cash equivalents $ 6.0 $ 3.4 Canadian equity securities 18.8 18.0 U.S. equity securities 13.6 13.0 Global equity securities 0.5 0.4 Government bonds 7.8 6.7 Corporate bonds 6.5 7.0 Pooled fund units: Equity funds 264.4 221.9 Fixed income funds 152.9 159.2 Real estate funds 7.9 7.7 Total pension plan assets $ 478.4 $ 437.3 |
Weighted-average of the principle actuarial assumptions | December 31, December 31, 2017 2016 Discount rate 3.4 % 3.9 % Future salary increases 3.25% - 3.75 % 3.5 % Health care trends 6.75 % 4.5 % Longevity at age 65 for current pensioners: Males 20.9 20.9 Females 22.9 23.0 Longevity at age 65 for current pensioners aged 45: Males 22.4 22.4 Females 24.3 24.5 |
Schedule of Sensitivity analysis | Increase Decrease As at December 31, 2017 of 1% of 1% Discount rate $ (78.3) $ 96.6 Future salary growth 0.2 (0.2) Health care trends rate 3.2 (2.5) Future mortality (2.1) 2.1 |
Pension Plans | |
Employee benefits | |
Schedule of movement in net defined benefit liability | Defined benefit Fair value Net defined benefit obligation of plan assets liability (asset) 2017 2016 2017 2016 2017 2016 Defined benefit obligation as at January 1, $ 614.4 $ 626.6 $ (437.3) $ (457.9) $ 177.1 $ 168.7 Included in earnings: Current service cost 6.0 6.0 — — 6.0 6.0 Past service costs 0.1 0.1 — — 0.1 0.1 Liabilities extinguished/ assets distributed on settlement — (28.5) — 23.7 — (4.8) Interest cost (income) 23.3 25.9 (16.4) (19.0) 6.9 6.9 29.4 3.5 (16.4) 4.7 13.0 8.2 Included in other comprehensive income: Actuarial loss (gain) arising from: - financial assumptions 36.5 28.6 — — 36.5 28.6 - demographic assumptions (4.6) (9.3) — — (4.6) (9.3) - experience adjustment 6.0 (2.5) — — 6.0 (2.5) Return on plan assets excluding interest income — — (42.1) (6.8) (42.1) (6.8) Foreign exchange adjustment 5.2 2.0 (5.4) (2.2) (0.2) (0.2) 43.1 18.8 (47.5) (9.0) (4.4) 9.8 Other: Employer contributions — — (9.3) (9.6) (9.3) (9.6) Plan participant contributions 0.4 0.4 (0.4) (0.4) — — Benefit payments (32.5) (34.9) 32.5 34.9 — — (32.1) (34.5) 22.8 24.9 (9.3) (9.6) Defined benefit obligation as at December 31, $ 654.8 $ 614.4 $ (478.4) $ (437.3) $ 176.4 $ 177.1 |
Other post-retirement plans | |
Employee benefits | |
Schedule of movement in net defined benefit liability | Defined benefit Fair value Net defined benefit obligation of plan assets liability (asset) 2017 2016 2017 2016 2017 2016 Defined benefit obligation as at January 1, $ 64.4 $ 65.7 $ — $ (0.4) $ 64.4 $ 65.3 Included in earnings: Current service cost 0.4 0.9 — — 0.4 0.9 Past service costs (25.8) (1.9) — — (25.8) (1.9) Interest cost (income) 2.3 2.6 — — 2.3 2.6 (23.1) 1.6 — — (23.1) 1.6 Included in other comprehensive income: Actuarial loss (gain) arising from: - financial assumptions 1.5 1.5 — — 1.5 1.5 - demographic assumptions (0.2) 1.7 — — (0.2) 1.7 - experience adjustment (3.2) (4.5) — — (3.2) (4.5) Return on plan assets excluding interest income — — — — — — Foreign exchange adjustment 1.4 0.6 — — 1.4 0.6 (0.5) (0.7) — — (0.5) (0.7) Other: Employer contributions — — (2.1) (2.1) (2.1) (2.1) Plan participant contributions 0.2 0.3 (0.2) — — 0.3 Benefit payments (2.3) (2.5) 2.3 2.5 — — (2.1) (2.2) — 0.4 (2.1) (1.8) Defined benefit obligation as at December 31, $ 38.7 $ 64.4 $ — $ — $ 38.7 $ 64.4 |
Long-term debt (Tables)
Long-term debt (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Long-term debt | |
Schedule of long term debt | December 31, December 31, 2017 2016 Syndicated credit facilities: Revolving loan payable $ 454.0 $ 241.5 Revolving loan payable in Canadian dollars (December 31, 2017 - C$nil; December 31, 2016 - C$25.0 million) — 18.6 Operating loan payable in Canadian dollars (December 31, 2017 - C$51.0 million; December 31, 2016 - C$nil) 40.6 — Term Loan A 500.0 — Term Loan B 2,000.0 — Senior term notes payable: 2024 Term Notes — 236.3 2017 Term Notes — 100.0 Financing fees (52.4) (0.4) Obligations under finance leases 18.8 4.7 Total long-term debt 2,961.0 600.7 Current portion (18.1) (101.9) Non-current portion $ 2,942.9 $ 498.8 |
Schedule of annual contractual principal repayments on long-term debt | Annual contractual principal repayments on long-term debt, net of financing fees, as at December 31, 2017 are as follows: Term Syndicated Finance Notes credit facility leases Total Less than one year $ — $ 11.4 $ 6.7 $ 18.1 Between one and five years 494.6 548.5 12.1 1,055.2 More than five years — 1,887.7 — 1,887.7 $ 494.6 $ 2,447.6 $ 18.8 $ 2,961.0 |
Shareholders' equity (Tables)
Shareholders' equity (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Shareholders equity | |
Schedule of equity | Number of shares Amount Balance as at December 31, 2015 36,227,952 $ 455.8 Common shares issued under employee share purchase plan (note 22(a)) 66,466 4.1 Common shares issued upon exercise of share-based compensation awards (note 22(b)) 83,860 7.0 Balance as at December 31, 2016 36,378,278 466.9 Common shares issued as part of acquisition consideration of DigitalGlobe, net of share issuance costs (note 9) 19,644,240 1,071.1 Common shares issued under employee share purchase plan (note 22(a)) 83,453 4.5 Common shares issued upon exercise of share-based compensation awards (note 22(b)&(c)) 105,595 7.8 Balance as at December 31, 2017 56,211,566 $ 1,550.3 |
Schedule of dividend declared | For the year ended December 31, 2017 2016 C$1.48 per common share (2016 - C$1.48) $ 47.4 $ 41.0 |
Earnings per common share (Tabl
Earnings per common share (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Earnings per common share | |
Schedule of basic earnings per share | For the year ended December 31, 2017 2016 Net earnings $ 100.4 $ 105.6 Weighted average number of common shares outstanding 41,140,321 36,306,880 Deferred share units outstanding 68,007 70,476 Weighted average number of common shares outstanding - basic 41,208,328 36,377,356 Earnings per common share - basic $ 2.44 $ 2.90 |
Schedule of diluted earnings per share | For the year ended December 31, 2017 2016 Net earnings - basic $ 100.4 $ 105.6 Effect of potentially dilutive share appreciation rights — (2.4) Net earnings - dilutive 100.4 103.2 Weighted average number of common shares outstanding - basic 41,208,328 36,377,356 Effect of potentially dilutive share appreciation rights 24,743 140,136 Effect of restricted share units 76,810 — Weighted average number of common shares outstanding - diluted 41,309,881 36,517,492 Earnings per common share - diluted $ 2.43 $ 2.83 |
Share-based payment plans (Tabl
Share-based payment plans (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Share-based payment plans | |
Schedule of total share based compensation expense | For the year ended December 31, 2017 2016 Share appreciation rights: Cash-settled $ 12.2 $ (5.2) Equity-settled 7.8 6.9 Restricted stock units: Equity-settled 2.9 — Deferred share units: Equity-settled 0.9 0.4 Executive compensation settlement (note 8) — 11.9 Accelerated vesting of share-based payment awards (note 9) 33.1 — Share matching program 0.3 0.1 Employee share purchase plan 0.7 0.6 $ 57.9 $ 14.7 |
Cash-settled SARs | |
Share-based payment plans | |
Schedule of summary of instruments | 2017 2016 Weighted Weighted average average Number exercise price Number exercise price of SARs per SAR of SARs per SAR SARs outstanding, beginning of year 3,031,760 C$ 79.64 2,103,627 C$ 80.39 SARs issued 25,523 68.56 1,135,266 75.48 SARs exercised (227,633) 54.54 (147,665) 54.06 SARs cancelled (190,793) 81.53 (59,468) 90.06 SARs outstanding, end of year 2,638,857 C$ 81.56 3,031,760 C$ 79.64 SARs exercisable, end of year 1,651,216 C$ 83.61 1,323,249 C$ 78.92 |
Schedule of summary of outstanding SARs | As at December 31, 2017 SARs outstanding SARs exercisable Weighted Weighted Weighted Weighted average average average average remaining exercise remaining exercise Number contractual price per Number contractual price per Prices per share of SARs life (in years) SAR of SARs life (in years) SAR C$56.95 to C$70.46 612,364 7.7 C$ 66.65 195,833 5.6 C$ 66.15 C$71.25 to C$82.73 825,143 1.9 82.02 608,331 1.4 81.97 C$83.60 to C$90.48 863,475 2.5 86.82 621,825 2.3 86.92 C$93.30 to C$97.93 337,875 2.4 94.07 225,227 2.4 94.07 2,638,857 3.5 C$ 81.57 1,651,216 2.4 C$ 83.61 As at December 31, 2016 SARs outstanding SARs exercisable Weighted Weighted Weighted Weighted average average average average remaining exercise remaining exercise Number contractual price per Number contractual price per Prices per share of SARs life (in years) SAR of SARs life (in years) SAR C$40.61 to C$51.95 123,592 0.6 C$ 48.58 123,592 0.6 C$ 48.58 C$56.95 to C$69.73 738,579 7.8 65.92 161,005 1.1 62.54 C$78.54 to C$82.73 887,472 2.8 82.10 554,515 1.9 81.86 C$83.60 to C$90.48 923,242 3.5 86.82 364,546 3.1 87.00 C$92.13 to C$97.93 358,875 3.4 94.06 119,591 3.4 94.06 3,031,760 4.2 C$ 79.64 1,323,249 2.1 C$ 78.92 |
Schedule of fair value measurements of other equity instruments | December 31, December 31, 2017 2016 Risk-free interest rate 1.7 % - 1.9 % 0.7 % - 1.4 % Dividend yield 1.8 % 2.2 % Expected award lives 1 - 78 months 1 - 84 months Volatility 14 % - 25 % 20 % - 26 % |
Equity-settled SARs | |
Share-based payment plans | |
Schedule of summary of instruments | 2017 2016 Weighted Weighted average average Number exercise price Number exercise price of SARs per SAR of SARs per SAR SARs outstanding, beginning of year 3,161,657 C$ 78.04 2,233,299 C$ 81.18 SARs issued 499,339 75.32 1,161,900 68.09 SARs exercised (201,155) 63.07 (189,708) 53.65 SARs cancelled (121,693) 76.02 (43,834) 80.08 SARs outstanding, end of year 3,338,148 C$ 78.61 3,161,657 C$ 78.04 SARs exercisable, end of year 1,812,010 C$ 83.50 1,395,572 C$ 82.70 |
Schedule of summary of outstanding SARs | As at December 31, 2017 SARs outstanding SARs exercisable Weighted Weighted Weighted Weighted average average average average remaining exercise remaining exercise Number contractual price per Number contractual price per Prices per share of SARs life (in years) SAR of SARs life (in years) SAR C$65.82 to C$69.86 1,216,810 9.0 C$ 66.64 211,750 8.9 C$ 66.72 C$72.33 to C$85.82 1,347,504 3.7 83.98 847,093 1.9 83.72 C$87.70 to C$95.67 773,834 1.9 88.05 753,167 1.9 87.96 3,338,148 5.2 C$ 78.60 1,812,010 2.7 C$ 83.50 As at December 31, 2016 SARs outstanding SARs exercisable Weighted Weighted Weighted Weighted average average average average remaining exercise remaining exercise Number contractual price per Number contractual price per Prices per share of SARs life (in years) SAR of SARs life (in years) SAR C$40.61 to C$66.72 1,179,971 9.2 C$ 65.45 94,071 0.8 C$ 51.22 C$71.22 to C$85.82 1,202,352 3.1 83.89 774,845 2.6 83.00 C$87.70 to C$95.67 779,334 2.9 88.05 526,656 2.9 87.89 3,161,657 5.3 C$ 78.04 1,395,572 2.6 C$ 82.70 |
Restricted share units | |
Share-based payment plans | |
Schedule of summary of instruments | RSUs Replacement RSUs Weighted Weighted average average remaining Weighted remaining Weighted vesting average vesting average Number period grant date Number period grant date of RSUs (in years) fair value of RSUs (in years) fair value RSUs outstanding, beginning of year — — C$ — — — $ — RSUs granted 590,663 3.0 79.68 — — — RSUs acquired (note 9) — — — 592,038 1.3 54.57 RSUs vested — — — (100,269) — 54.57 RSUs cancelled — — — (21,668) — 54.57 RSUs outstanding, end of year 590,663 3.0 C$ 79.68 470,101 1.3 $ 54.57 |
Deferred share units | |
Share-based payment plans | |
Schedule of summary of instruments | 2017 2016 Weighted Weighted average average Number issue price Number issue price of DSUs per DSU of DSUs per DSU DSUs outstanding, beginning of year 62,099 C$ 44.93 79,867 C$ 40.81 DSUs issued 18,042 69.24 8,756 81.36 DSUs redeemed (681) 81.42 (26,524) 44.56 DSUs outstanding, end of year 79,460 C$ 50.13 62,099 C$ 44.93 |
Equity-settled SARs, RSUs and DSUs | |
Share-based payment plans | |
Schedule of fair value measurements of other equity instruments | Risk-free interest rate 0.6 % - 1.9 % Dividend yield 1.5 % - 2.2 % Expected award lives 5 - 84 months Volatility 17 % - 25 % |
Financial instruments and fai58
Financial instruments and fair value disclosures (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Financial instruments and fair value disclosures | |
Schedule of financial instruments and their carrying amounts | As at December 31, 2017: Financial Derivative assets at instruments Available-for- fair value in a qualifying sale through hedging Loans and financial Total carrying earnings relationship receivables assets Other amount Financial assets: Current: Cash and cash equivalents $ — $ — $ 19.1 $ — $ — $ 19.1 Trade and other receivables: Trade accounts receivable — — 273.1 — — 273.1 Orbital receivables — — 30.0 — — 30.0 Other receivables — — 8.9 — 36.2 45.1 — — 312.0 — 36.2 348.2 Financial assets, other: Short-term investments — — — 0.8 — 0.8 Notes receivable — — 0.2 — — 0.2 Derivative financial instruments 7.1 2.5 — — — 9.6 Restricted cash — — 5.7 — — 5.7 7.1 2.5 5.9 0.8 — 16.3 Non-current: Orbital receivables — — 424.2 — — 424.2 Financial assets, other: Notes receivable — — 20.2 — — 20.2 Derivative financial instruments 1.6 1.3 — — — 2.9 Long-term investments — — — 27.4 — 27.4 Restricted cash — — 17.3 — — 17.3 1.6 1.3 37.5 27.4 — 67.8 As at December 31, 2017, included in long-term investments is an investment of $26.1 million (C$32.7 million) (December 31, 2016 - $24.4 million (C$32.7 million)) in unquoted equity securities in an entity over which the Company does not have significant influence. The fair value of these unquoted equity securities cannot be reliably determined due to the lack of an active market and are carried at cost. Financial Derivative liabilities at instruments fair value in a qualifying Other through hedging financial Total carrying earnings relationship liabilities amount Financial liabilities: Current: Trade and other payables $ — $ — $ 236.9 $ 236.9 Financial liabilities, other: Non-trade payables — — 12.1 12.1 Derivative financial instruments 5.4 1.4 — 6.8 5.4 1.4 12.1 18.9 Securitization liability — — 15.5 15.5 Long-term debt: Current portion of long-term debt — — 11.4 11.4 Obligations under finance leases — — 6.7 6.7 — — 18.1 18.1 Non-current: Financial liabilities, other: Non-trade payables — — 11.7 11.7 Derivative financial instruments 1.4 0.7 — 2.1 1.4 0.7 11.7 13.8 Securitization liability — — 90.8 90.8 Long-term debt: Long-term debt — — 2,930.9 2,930.9 Obligations under finance leases — — 12.0 12.0 — — 2,942.9 2,942.9 As at December 31, 2016: Financial Derivative assets at instruments Available-for- fair value in a qualifying sale through hedging Loans and financial Total carrying earnings relationship receivables assets Other amount Financial assets: Current: Cash and cash equivalents $ — $ — $ 14.1 $ — $ — $ 14.1 Trade and other receivables: Trade accounts receivable — — 175.9 — — 175.9 Orbital receivables — — 27.1 — — 27.1 Other receivables — — 5.7 — 22.4 28.1 — — 208.7 — 22.4 231.1 Financial assets, other: Short-term investments — — — 5.8 — 5.8 Notes receivable — — 38.5 — — 38.5 Derivative financial instruments 6.1 5.7 — — — 11.8 Restricted cash — — 8.6 — — 8.6 6.1 5.7 47.1 5.8 — 64.7 Non-current: Orbital receivables — — 418.4 — — 418.4 Financial assets, other: Notes receivable — — 14.0 — — 14.0 Derivative financial instruments 3.7 2.2 — — — 5.9 Long-term investments — — — 24.4 — 24.4 Restricted cash — — 16.6 — — 16.6 3.7 2.2 30.6 24.4 — 60.9 Financial Derivative liabilities at instruments fair value in a qualifying Other through hedging financial Total carrying earnings relationship liabilities amount Financial liabilities: Current: Bank overdraft $ — $ — $ 17.9 $ 17.9 Trade and other payables — — 186.0 186.0 Financial liabilities, other: Non-trade payables — — 5.4 5.4 Derivative financial instruments 8.8 3.1 — 11.9 8.8 3.1 5.4 17.3 Securitization liability — — 14.9 14.9 Long-term debt: Long-term debt — — 99.9 99.9 Obligations under finance leases — — 2.0 2.0 — — 101.9 101.9 Non-current: Financial liabilities, other: Non-trade payables — — 12.6 12.6 Derivative financial instruments 1.3 1.5 — 2.8 1.3 1.5 12.6 15.4 Securitization liability — — 106.3 106.3 Long-term debt: Long-term debt — — 496.0 496.0 Obligations under finance leases — — 2.8 2.8 — — 498.8 498.8 |
Schedule of analysis financial instruments carried at fair value | December 31, 2017 Level 1 Level 2 Level 3 Total Assets Short-term investments $ 0.8 $ — $ — $ 0.8 Derivative financial instruments — 12.5 — 12.5 Total assets $ 0.8 $ 12.5 $ — $ 13.3 Liabilities Derivative financial instruments $ — $ 8.9 $ — $ 8.9 During the year, no transfers occurred between Level 1 and Level 2 financial instruments. December 31, 2016 Level 1 Level 2 Level 3 Total Assets Short-term investments $ 5.8 $ — $ — $ 5.8 Derivative financial instruments — 17.9 — 17.9 Total assets $ 5.8 $ 17.9 $ — $ 23.7 Liabilities Derivative financial instruments $ — $ 14.7 $ — $ 14.7 |
Schedule of trade receivables and allowance for doubtful accounts | December 31, December 31, 2017 2016 Trade receivables $ 282.8 $ 180.9 Less: allowance for doubtful accounts (9.7) (5.0) Trade receivables, net of allowance for doubtful accounts $ 273.1 $ 175.9 |
Schedule of aging of trade receivables at the reporting date | December 31, December 31, 2017 2016 Not past due $ 208.3 $ 130.1 Past due 1 - 30 days 52.5 15.0 Past due 31 - 90 days 6.8 5.7 Past due 90+ days 5.5 25.1 $ 273.1 $ 175.9 |
Schedule of allowance for doubtful accounts | Balance as at December 31, 2015 $ 8.9 Allowance reversed (3.7) Foreign exchange (0.2) Balance as at December 31, 2016 5.0 Bad debt expense 4.7 Balance as at December 31, 2017 $ 9.7 |
Schedule of maturities of contractual cash flows of financial liabilities | Maturing in Maturing Carrying Contractual less than Maturing in Maturing in beyond December 31, 2017 amount cash flows 1 year 1 to 2 years 2 to 5 years 5 years Non-derivative financial liabilities: Bank overdraft $ — $ — $ — $ — $ — $ — Trade and other payables 236.8 236.8 236.8 — — — Financial liabilities, other: Non-trade payables 14.4 14.6 2.6 1.3 3.9 6.8 Securitization liability 106.3 108.8 16.3 15.6 57.3 19.6 Long-term debt: Obligations under finance leases 18.8 20.5 7.4 6.4 6.7 — Long-term debt, Including interest 2,942.2 3,799.1 169.9 160.5 1,407.7 2,061.0 2,961.0 3,819.6 177.3 166.9 1,414.4 2,061.0 3,318.5 4,179.8 433.0 183.8 1,475.6 2,087.4 Derivative financial liabilities: Foreign exchange forward contracts 8.0 8.1 6.4 1.5 0.2 — Other derivative instruments 0.9 0.9 0.4 0.4 0.1 — 8.9 9.0 6.8 1.9 0.3 — $ 3,327.4 $ 4,188.8 $ 439.8 $ 185.7 $ 1,475.9 $ 2,087.4 Maturing in Maturing Carrying Contractual less than Maturing in Maturing in beyond December 31, 2016 amount cash flows 1 year 1 to 2 years 2 to 5 years 5 years Non-derivative financial liabilities: Bank overdraft $ 17.9 $ 17.9 $ 17.9 $ — $ — $ — Trade and other payables 186.0 186.0 186.0 — — — Financial liabilities, other: Non-trade payables 18.1 18.7 6.2 2.0 6.2 4.3 Securitization liability 121.2 151.9 22.6 22.3 63.9 43.1 Long-term debt: Obligations under finance leases 4.8 5.1 2.4 1.7 1.0 — Long-term debt, Including interest 596.0 694.2 119.2 20.3 400.9 153.8 600.8 699.3 121.6 22.0 401.9 153.8 944.0 1,073.7 354.3 46.3 472.0 201.1 Derivative financial liabilities: Foreign exchange forward contracts 12.8 12.9 10.4 1.6 0.9 — Other derivative instruments 1.9 1.9 1.5 0.3 0.1 — 14.7 14.8 11.9 1.9 1.0 — $ 958.7 $ 1,088.5 $ 366.2 $ 48.2 $ 473.0 $ 201.1 |
Schedule of effect of an increase or decrease in interest rate risks | 50 basis points higher 50 basis points lower Effect on other Effect on other Effect on comprehensive Effect on comprehensive net earnings income net earnings income Interest rate risk $ (4.3) $ — $ 4.3 $ — |
Schedule of foreign exchange forward contracts outstanding | Carrying Average value Notional exchange asset December 31, 2017 amount rate Maturity dates (liability) Purchase contracts settled in Canadian dollars: U.S. dollar 165.3 1.2742 January 2018 - Oct 2020 $ (2.7) Euro 15.7 1.4998 January 2018 - September 2020 0.2 British pound 2.4 1.6919 January 2018 - January 2019 — Sales contracts settled in Canadian dollars: U.S. dollar 311.5 1.2790 January 2018 - January 2021 $ 6.5 Euro 26.1 1.4926 January 2018 - January 2021 (0.6) British pound 1.9 1.7206 January 2018 - January 2019 — Purchase contracts settled in United States dollars: Japanese yen 2,231.2 0.0092 March 2018 - March 2019 $ (0.5) Euro 31.9 1.1530 January 2018 - April 2019 2.1 Sales contracts settled in United States dollars: Japanese yen 1,115.5 0.0092 March 2018 - March 2019 $ 0.2 Euro 57.6 1.1584 January 2018 - April 2019 (3.3) Carrying Average value Notional exchange asset December 31, 2016 amount rate Maturity dates (liability) Purchase contracts settled in Canadian dollars: U.S. dollar 175.2 1.3100 January 2017 - March 2020 $ 3.8 Euro 14.8 1.4163 January 2017 - September 2018 0.1 British pound 3.1 1.8305 January 2017 - March 2018 (0.4) Sales contracts settled in Canadian dollars: U.S. dollar 282.4 1.2962 January 2017 - January 2021 $ (8.5) Euro 23.2 1.4414 January 2017 - January 2021 0.1 British pound 2.4 1.7976 January 2017 - March 2018 0.2 Purchase contracts settled in United States dollars: Japanese yen 1,726.3 0.0096 March 2017 - March 2019 $ (1.4) Euro 11.7 1.0767 January 2017 - April 2017 (0.2) Sales contracts settled in United States dollars: Japanese yen 3,276.7 0.0084 January 2017 - October 2017 $ (0.9) Euro 126.9 1.1270 January 2017 - April 2019 6.9 |
Schedule of cash flows associated with designated cashflow hedge and carrying amounts of hedging instruments | Maturing in Maturing Carrying Expected less than Maturing in Maturing in beyond December 31, 2017 amount cash flows 1 year 1 to 2 years 2 to 5 years 5 years Foreign exchange forward contracts: Assets $ 3.8 $ 4.3 $ 3.0 $ 1.0 $ 0.3 $ — Liabilities 2.1 2.2 1.4 0.5 0.3 — Maturing in Maturing Carrying Expected less than Maturing in Maturing in beyond December 31, 2016 amount cash flows 1 year 1 to 2 years 2 to 5 years 5 years Foreign exchange forward contracts: Assets $ 7.9 $ 8.1 $ 5.8 $ 1.6 $ 0.7 $ — Liabilities 4.6 4.7 3.1 0.8 0.8 — |
Schedule of foreign exchange sensitivity | Currency 1 strengthens 10% Currency 1 weakens 10% against currency 2 against currency 2 Effect on other Effect on other Effect on comprehensive Effect on comprehensive Currency 1 Currency 2 net earnings income net earnings income December 31, 2017 U.S. dollar Canadian dollar $ (7.6) $ (6.8) $ 7.6 $ 6.8 British pound Canadian dollar — 0.1 — (0.1) Euro Canadian dollar (0.4) (0.4) 0.4 0.4 New Zealand dollar Canadian dollar — (0.1) — 0.1 Euro U.S. dollar 3.4 (1.4) (3.4) 1.4 Japanese yen U.S. dollar 0.2 — (0.2) — December 31, 2016 U.S. dollar Canadian dollar $ 0.1 $ (5.4) $ (0.1) $ 5.4 Euro Canadian dollar (0.3) (0.6) 0.3 0.6 Euro U.S. dollar 4.9 (9.8) (4.9) 9.8 Japanese yen U.S. dollar 0.8 (2.5) (0.8) 2.5 |
Schedule of carrying amounts of foreign exchange forward contracts that are subject to master netting agreements | Gross and net amounts Financial in the instruments Amount consolidated that are if presented December 31, 2017 balance sheet not offset net Derivative financial assets: Foreign exchange forward contracts $ 9.9 $ 6.5 $ 3.4 Derivative financial liabilities: Foreign exchange forward contracts 8.0 6.5 1.5 Gross and net amounts Financial in the instruments Amount consolidated that are if presented December 31, 2016 balance sheet not offset net Derivative financial assets: Foreign exchange forward contracts $ 12.5 $ 8.1 $ 4.4 Other derivative instruments 5.3 — 5.3 17.8 8.1 9.7 Derivative financial liabilities: Foreign exchange forward contracts 12.7 8.1 4.6 Other derivative instruments 1.9 — 1.9 14.6 8.1 6.5 |
Capital management (Tables)
Capital management (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Capital management | |
Schedule of Capital management | December 31, December 31, 2017 2016 Share capital $ 1,550.3 $ 466.9 Contributed surplus 50.6 31.0 Retained earnings 261.8 208.8 $ 1,862.7 $ 706.7 |
Income taxes (Tables)
Income taxes (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Income taxes | |
Summary of income tax expense | For the year ended December 31, 2017 2016 Current tax expense: Current period $ 16.3 $ 20.3 Adjustment for prior periods 2.3 6.7 18.6 27.0 Deferred tax expense: Origination and reversal of temporary differences (38.0) (4.4) Change in unrecognized deductible temporary differences 5.2 1.4 Change in tax rate 0.3 (0.1) Recognition of previously unrecognized tax losses (122.4) — (154.9) (3.1) Income tax expense (recovery) $ (136.3) $ 23.9 |
Summary of reconciliation between statutory and effective income tax | For the year ended December 31, 2017 2016 Statutory Federal and Provincial tax rate in Canada 26.00 % 26.00 % Income tax expense at the statutory tax rate $ (9.3) $ 33.7 Foreign earnings subject to different rates (13.0) (6.1) Change in statutory rates 3.9 — Change in unrecognized deferred tax assets (122.0) (0.6) Foreign exchange differences (3.4) (1.1) Share-based compensation 2.3 1.8 Other permanent differences 5.2 (3.8) $ (136.3) $ 23.9 |
Summary of Unrecognized deferred tax assets | December 31, December 31, 2017 2016 Tax losses $ 177.6 $ 254.1 Other deductible temporary differences 90.4 138.3 $ 268.0 $ 392.4 |
Summary of Recognized deferred tax assets and liabilities | December 31, 2017 Assets Liabilities Net Construction contract assets and liabilities $ 87.6 $ (8.4) $ 79.2 Property, plant and equipment 177.8 (20.6) 157.2 Intangible assets and goodwill 9.2 (553.8) (544.6) Investment tax credits 11.1 (15.3) (4.2) Derivative financial instruments 5.0 (1.5) 3.5 Trade and other payables 26.6 — 26.6 Employee benefits 61.6 — 61.6 Tax loss carry forwards 216.9 — 216.9 Other items 11.2 (2.7) 8.5 Tax assets (liabilities) 607.0 (602.3) 4.7 Set off of tax (498.7) 498.7 — Net tax assets (liabilities) $ 108.3 $ (103.6) $ 4.7 December 31, 2016 Assets Liabilities Net Construction contract assets and liabilities $ 4.3 $ (4.0) $ 0.3 Property, plant and equipment 0.1 (0.4) (0.3) Intangible assets and goodwill 0.8 (7.0) (6.2) Investment tax credits 8.3 (10.6) (2.3) Derivative financial instruments 0.2 (0.8) (0.6) Trade and other payables 2.3 — 2.3 Employee benefits 5.7 — 5.7 Tax loss carry forwards 4.7 — 4.7 Other items 0.2 (0.1) 0.1 Tax assets (liabilities) 26.6 (22.9) 3.7 Set off of tax (11.6) 11.6 — Net tax assets (liabilities) $ 15.0 $ (11.3) $ 3.7 |
Summary of movements of deferred tax assets and liabilities | Recognized Acquired in Balance, Recognized in other business Foreign Balance, December 31, in statement comprehensive combination currency December 31, 2016 of earnings income (note 9) translation 2017 Construction contract assets and liabilities $ 0.3 $ (46.3) $ — $ 125.3 $ (0.1) $ 79.2 Property, plant and equipment (0.3) 74.9 — 82.3 0.3 157.2 Intangible assets and goodwill (6.2) (12.9) — (525.0) (0.5) (544.6) Investment tax credits (2.3) 43.8 — (45.7) — (4.2) Derivative financial instruments (0.6) 0.5 0.9 2.7 — 3.5 Trade and other payables 2.3 17.6 — 6.5 0.2 26.6 Employee benefits 5.7 43.9 (5.6) 17.3 0.3 61.6 Tax loss carry forwards 4.7 76.1 — 135.6 0.5 216.9 Other items 0.1 (42.7) 0.1 51.4 (0.4) 8.5 $ 3.7 $ 154.9 $ (4.6) $ (149.6) $ 0.3 $ 4.7 Recognized Balance, Recognized in other Foreign Balance, December 31, in statement comprehensive currency December 31, 2015 of earnings income translation 2016 Construction contract assets and liabilities $ 1.1 $ (0.9) $ — $ 0.1 $ 0.3 Property, plant and equipment 0.2 (0.5) — — (0.3) Intangible assets and goodwill (6.1) 0.1 — (0.2) (6.2) Investment tax credits (6.4) 4.4 — (0.3) (2.3) Derivative financial instruments (1.1) 0.4 0.1 — (0.6) Trade and other payables 3.7 (1.5) — 0.1 2.3 Employee benefits 5.6 (0.7) 0.6 0.2 5.7 Tax loss carry forwards 2.3 2.4 — — 4.7 Other items 0.6 (0.6) — 0.1 0.1 $ (0.1) $ 3.1 $ 0.7 $ — $ 3.7 |
Summary of non-capital losses carried forward for tax purposes that are available to reduce taxable income of future years | 2019 $ 0.1 2026 1.1 2027 0.7 2028 9.7 2029 1.1 2030 41.6 2031 12.3 2032 171.9 2033 21.0 2034 15.6 2035 56.5 2036 60.2 2037 401.1 No Expiry 2.7 $ 795.6 |
Contingencies and commitments (
Contingencies and commitments (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Contingencies and commitments | |
Schedule to acquire property, plant and equipment and intangible assets and minimum rentals under operating leases | Purchase Operating obligations leases Total 2018 $ 370.2 $ 38.0 $ 408.2 2019 286.6 35.1 321.7 2020 117.7 29.0 146.7 2021 16.6 26.9 43.5 2022 13.8 23.3 37.1 Thereafter 13.8 102.5 116.3 $ 818.7 $ 254.8 $ 1,073.5 |
Related party transactions (Tab
Related party transactions (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Related party transactions | |
Schedule of Compensation expense for the Company's directors and Named Executive Officers | For the year ended December 31, 2017 2016 Salaries and other benefits $ 9.4 $ 8.2 Post-employment benefits 1.5 0.5 Share-based payments 5.2 16.8 $ 16.1 $ 25.5 |
Supplemental cash flow inform63
Supplemental cash flow information (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Schedule of changes in operating assets and liabilities | For the year ended December 31, 2017 2016 Trade and other receivables $ 64.4 $ 45.7 Construction contract assets (40.1) 58.7 Financial assets, other 41.2 (45.0) Inventories 1.1 1.4 Current tax assets (37.4) (25.3) Non-financial assets 31.5 (4.0) Orbital receivables (5.8) (8.7) Trade and other payables (17.6) 22.4 Financial liabilities, other 4.7 (11.2) Provisions 11.8 (0.2) Construction contract liabilities (39.7) (147.9) Employee benefits (24.1) 3.0 Non-financial liabilities (32.5) (8.1) $ (42.5) $ (119.2) |
Schedule of cash and cash equivalents on the consolidated statements of cash flows | For the year ended December 31, 2017 2016 Cash and cash equivalents $ 19.1 $ 14.1 Bank overdraft — (17.9) $ 19.1 $ (3.8) |
Disclosure of reconciliation of liabilities arising from financing activities [text block] | Obligations under Long-term Securitization finance Financial debt liability leases liabilities Total Balance as at January 1, 2017 $ 596.0 $ 121.2 $ 4.7 $ 5.2 $ 727.1 Changes from financing cash flows: Repayment of revolving loan facility and other long-term debt (421.4) — — — (421.4) Repayment of 2017 Term notes (100.0) — — — (100.0) Repayment of 2024 Term notes (256.3) — — — (256.3) Payments on finance leases — — (4.5) — (4.5) Interest paid on long-term debt (40.5) — — — (40.5) Settlement of securitization liability, including interest — (21.8) — — (21.8) Repayment of interest free government assistance — — — (1.0) (1.0) Total changes from financing cash flows (818.2) (21.8) (4.5) (1.0) (845.5) Issuance of long-term debt related to acquisition, net of financing fees (note 9) 3,096.7 — — — 3,096.7 The effect of changes in foreign exchange rates 4.7 — 0.4 0.3 5.4 Liability related changes: Amortization of financing fees 2.2 — — — 2.2 New finance leases — — 7.3 — 7.3 Finance leases acquired — — 10.6 — 10.6 Loss from early extinguishment of debt 20.4 — — — 20.4 Finance expense 40.4 6.9 0.3 0.3 47.9 Total liability related other changes 63.0 6.9 18.2 0.3 88.4 Balance as at December 31, 2017 $ 2,942.2 $ 106.3 $ 18.8 $ 4.8 $ 3,072.1 |
DigitalGlobe | |
Schedule of acquisition, net of cash acquired in the investing section of the consolidated statement of cash flows | For the year ended December 31, 2017 Investing activities: Acquisition of DigitalGlobe $ (1,131.0) Repayment of DigitalGlobe long-term debt (1,266.0) Settlement of DigitalGlobe transaction costs (46.6) Cash acquired 170.6 $ (2,273.0) |
Significant accounting polici64
Significant accounting policies - Property, plant and equipment (Details) | 12 Months Ended |
Dec. 31, 2017 | |
Land improvements | |
Property, plant and equipment | |
Estimated useful life | 20 years |
Buildings | Minimum | |
Property, plant and equipment | |
Estimated useful life | 7 years |
Buildings | Maximum | |
Property, plant and equipment | |
Estimated useful life | 45 years |
Test and other equipment | Minimum | |
Property, plant and equipment | |
Estimated useful life | 2 years |
Test and other equipment | Maximum | |
Property, plant and equipment | |
Estimated useful life | 12 years |
Vehicles | Minimum | |
Property, plant and equipment | |
Estimated useful life | 5 years |
Vehicles | Maximum | |
Property, plant and equipment | |
Estimated useful life | 6 years |
Thermal vacuum chambers | Minimum | |
Property, plant and equipment | |
Estimated useful life | 21 years |
Thermal vacuum chambers | Maximum | |
Property, plant and equipment | |
Estimated useful life | 40 years |
Satellites | Minimum | |
Property, plant and equipment | |
Estimated useful life | 2 years |
Satellites | Maximum | |
Property, plant and equipment | |
Estimated useful life | 10 years |
Furniture and fixtures | Minimum | |
Property, plant and equipment | |
Estimated useful life | 2 years |
Furniture and fixtures | Maximum | |
Property, plant and equipment | |
Estimated useful life | 10 years |
Computer hardware | Minimum | |
Property, plant and equipment | |
Estimated useful life | 2 years |
Computer hardware | Maximum | |
Property, plant and equipment | |
Estimated useful life | 13 years |
Significant accounting polici65
Significant accounting policies - Intangible assets (Details) | 12 Months Ended |
Dec. 31, 2017 | |
Trade names | |
Intangible assets and goodwill | |
Estimated useful life | 20 years |
Image library | |
Intangible assets and goodwill | |
Estimated useful life | 5 years |
Licenses | |
Intangible assets and goodwill | |
Estimated useful life | 7 years |
Non-compete agreement | |
Intangible assets and goodwill | |
Estimated useful life | 2 years |
Minimum | Customer relationships | |
Intangible assets and goodwill | |
Estimated useful life | 9 years |
Minimum | Backlog | |
Intangible assets and goodwill | |
Estimated useful life | 3 years |
Minimum | Technologies | |
Intangible assets and goodwill | |
Estimated useful life | 5 years |
Minimum | Software | |
Intangible assets and goodwill | |
Estimated useful life | 3 years |
Minimum | Trademarks | |
Intangible assets and goodwill | |
Estimated useful life | 5 years |
Maximum | Customer relationships | |
Intangible assets and goodwill | |
Estimated useful life | 21 years |
Maximum | Backlog | |
Intangible assets and goodwill | |
Estimated useful life | 5 years |
Maximum | Technologies | |
Intangible assets and goodwill | |
Estimated useful life | 13 years |
Maximum | Software | |
Intangible assets and goodwill | |
Estimated useful life | 10 years |
Maximum | Trademarks | |
Intangible assets and goodwill | |
Estimated useful life | 14 years |
Revenue and segmented informa66
Revenue and segmented information - Operating segments (Details) | 12 Months Ended |
Dec. 31, 2017item | |
Revenue and segmented information | |
Number of reportable segments added | 2 |
Number of reportable segments | 3 |
Revenue and segmented informa67
Revenue and segmented information - Operating performance of segments (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Operating segments disclosures | ||
Total revenue | $ 1,631.2 | $ 1,557.5 |
Total | 291 | 222.6 |
Operating segments | ||
Operating segments disclosures | ||
External revenue | 1,631.2 | 1,557.5 |
Total revenue | 1,631.2 | 1,557.5 |
Adjusted EBITDA | 378.7 | 267.6 |
Depreciation and amortization | 87.7 | 45 |
Total | 291 | 222.6 |
Property, plant and equipment | 58.3 | 41.6 |
Intangible assets | 86.7 | 61.5 |
Total capital expenditures | 145 | 103.1 |
Operating segments | Space Systems | ||
Operating segments disclosures | ||
External revenue | 1,259.6 | 1,417.2 |
Intersegment elimination | 10.2 | 3.6 |
Total revenue | 1,269.8 | 1,420.8 |
Adjusted EBITDA | 231.9 | 246 |
Depreciation and amortization | 40.6 | 41.3 |
Total | 191.3 | 204.7 |
Property, plant and equipment | 51.4 | 39.2 |
Intangible assets | 64.3 | 59.7 |
Total capital expenditures | 115.7 | 98.9 |
Operating segments | Imagery | ||
Operating segments disclosures | ||
External revenue | 228.4 | 41 |
Intersegment elimination | 1.7 | 0.8 |
Total revenue | 230.1 | 41.8 |
Adjusted EBITDA | 147.6 | 22.4 |
Depreciation and amortization | 40.6 | 0.2 |
Total | 107 | 22.2 |
Property, plant and equipment | 4.7 | 0.3 |
Intangible assets | 22 | |
Total capital expenditures | 26.7 | 0.3 |
Operating segments | Services | ||
Operating segments disclosures | ||
External revenue | 143.2 | 99.3 |
Intersegment elimination | 1.4 | 0.4 |
Total revenue | 144.6 | 99.7 |
Adjusted EBITDA | 23.4 | 20.3 |
Depreciation and amortization | 5.9 | 3.4 |
Total | 17.5 | 16.9 |
Property, plant and equipment | 2 | 0.9 |
Intangible assets | 0.2 | 1.4 |
Total capital expenditures | 2.2 | 2.3 |
Corporate and eliminations | ||
Operating segments disclosures | ||
Intersegment elimination | (13.3) | (4.8) |
Total revenue | (13.3) | (4.8) |
Adjusted EBITDA | (24.2) | (21.1) |
Depreciation and amortization | 0.6 | 0.1 |
Total | (24.8) | (21.2) |
Property, plant and equipment | 0.2 | 1.2 |
Intangible assets | 0.2 | 0.4 |
Total capital expenditures | $ 0.4 | $ 1.6 |
Revenue and segmented informa68
Revenue and segmented information - Reconciliation to earnings (loss) before income taxes (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Revenue and segmented information | ||
Segment earnings | $ 291 | $ 222.6 |
Amortization of acquisition related intangible assets | 79.4 | 32.4 |
Foreign exchange differences | 2.8 | |
Foreign exchange differences | (11.5) | |
Share-based compensation expense (note 22(f)) | 57.9 | 14.7 |
Other expense (note 8) | 119.4 | 5.9 |
Earnings before interest and taxes | 45.8 | 166.8 |
Finance income | (1.3) | (0.3) |
Finance expense | 82.5 | 37.6 |
Earnings (loss) before income taxes | $ (35.4) | $ 129.5 |
Revenue and segmented informa69
Revenue and segmented information - Primary sources of revenue (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Revenue and segmented information | ||
Construction contracts | $ 1,183.2 | $ 1,342.4 |
Services contracts | 448 | 215.1 |
Total revenue | $ 1,631.2 | $ 1,557.5 |
Revenue and segmented informa70
Revenue and segmented information - Additional information (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Revenue and segmented information | ||
Orbital income | $ 34.8 | $ 30.9 |
Aggregate amount of revenue recognized to date less loss recognized to date for construction contracts in progress | 2,770.5 | 2,707.6 |
Advance payments received for construction contracts in progress | 238.8 | 266.6 |
Retentions in connection with construction contracts | $ 6.9 | $ 7 |
Revenue and segmented informa71
Revenue and segmented information - Revenue based on geographic location (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Geographical areas disclosures | ||
Revenues | $ 1,631.2 | $ 1,557.5 |
United States | ||
Geographical areas disclosures | ||
Revenues | 743.8 | 447.2 |
Canada | ||
Geographical areas disclosures | ||
Revenues | 329.9 | 424.4 |
Asia | ||
Geographical areas disclosures | ||
Revenues | 295.3 | 311.9 |
Europe | ||
Geographical areas disclosures | ||
Revenues | 207.1 | 284.5 |
Australia | ||
Geographical areas disclosures | ||
Revenues | 29.6 | 29.7 |
South America | ||
Geographical areas disclosures | ||
Revenues | 16.7 | 58.1 |
Other | ||
Geographical areas disclosures | ||
Revenues | $ 8.8 | $ 1.7 |
Revenue and segmented informa72
Revenue and segmented information - Revenue from significant customers (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Major customers disclosures | ||
Revenues | $ 1,631.2 | $ 1,557.5 |
Commercial Customer 1 | ||
Major customers disclosures | ||
Revenues | 119.9 | 197.1 |
Canadian Federal Government and agencies | ||
Major customers disclosures | ||
Revenues | 194.3 | 212.3 |
U.S. Federal Government and agencies | ||
Major customers disclosures | ||
Revenues | $ 293.8 | $ 97.5 |
Revenue and segmented informa73
Revenue and segmented information - Non-current assets (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Geographical areas disclosures | ||
Non-current non-financial assets, property, plant and equipment, intangible assets and goodwill | $ 5,246.4 | $ 1,395.3 |
United States | ||
Geographical areas disclosures | ||
Non-current non-financial assets, property, plant and equipment, intangible assets and goodwill | 5,103.5 | 1,268.2 |
Canada | ||
Geographical areas disclosures | ||
Non-current non-financial assets, property, plant and equipment, intangible assets and goodwill | 142.7 | 126.9 |
Europe | ||
Geographical areas disclosures | ||
Non-current non-financial assets, property, plant and equipment, intangible assets and goodwill | $ 0.2 | $ 0.2 |
Expenses by nature (Details)
Expenses by nature (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Expenses by nature | ||
Employee salaries and benefits | $ 595.4 | $ 549.2 |
Costs related to defined benefit plans (note 18(b)&(c)) | (19.3) | 0.3 |
Costs related to defined contribution plans (note 18(f)) | 16.7 | 14.5 |
Inventories used | 103.5 | 128.8 |
Subcontractor costs relating to construction and service contracts | 342.8 | 380.8 |
Materials, equipment, professional fees, travel and other | 215.4 | 215.5 |
Direct costs, selling, general and administration | 1,254.5 | 1,289.1 |
Depreciation and amortization | 167.1 | 77.4 |
Foreign exchange loss (gain) | (13.5) | 3.6 |
Share-based compensation expense (note 22(f)) | 57.9 | 14.7 |
Other expense (note 8) | 119.4 | 5.9 |
Total expenses, by nature | $ 1,585.4 | $ 1,390.7 |
Finance expense (Details)
Finance expense (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Finance expense | ||
Interest expense on long-term debt | $ 57.7 | $ 26.2 |
Interest expense on defined benefit pension and other post-retirement benefit obligations (note 18(b)&(c)) | 9.2 | 9.5 |
Interest expense on orbital securitization liability (note 14) | 7.8 | 1.6 |
Interest expense on advance payments | 7.9 | |
Capitalization of borrowing costs (notes 15 & 16(a)) | (4.9) | (2.8) |
Imputed interest and other | 4.8 | 3.1 |
Finance expense | $ 82.5 | $ 37.6 |
Other expense (Details)
Other expense (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||
Dec. 31, 2017 | Jun. 30, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Oct. 05, 2017 | Dec. 31, 2015 | |
Other expense | ||||||
Acquisition related expense (note 9) | $ 59.9 | |||||
Restructuring and enterprise improvement costs | 36.5 | $ 3.6 | ||||
Loss from early extinguishment of debt | 23 | |||||
Executive compensation settlement | $ 2.3 | 2.3 | ||||
Total other expense | 119.4 | 5.9 | ||||
Remaining provision | $ 168 | 168 | 37.9 | $ 38.1 | ||
Employee severance and retention related costs | 13.1 | |||||
Building related restructuring costs | 6 | |||||
Employee severance cost | 11.9 | 3.6 | ||||
Consulting fees | 5.5 | 0 | ||||
Executive compensation settlement to a related party | 14.2 | 14.2 | ||||
Executive compensation settlement recorded as share-based compensation expense | $ 11.9 | 11.9 | ||||
Restructuring costs | ||||||
Other expense | ||||||
Remaining provision | $ 2.3 | 2.3 | 1.5 | $ 6.4 | ||
Palo Alto restructuring | ||||||
Other expense | ||||||
Restructuring and enterprise improvement costs | 17.4 | 3.6 | ||||
DigitalGlobe | ||||||
Other expense | ||||||
Acquisition related expense (note 9) | 59.9 | $ 0 | ||||
Syndicated Credit Facility and 2024 Term notes | ||||||
Other expense | ||||||
Loss from early extinguishment of debt | 23 | |||||
Maximum borrowing capacity | $ 700 | |||||
Make-whole premium | 20 | |||||
Write-off of the unamortized balance of capitalized financing fees | $ 3 |
Business combination (Details)
Business combination (Details) - DigitalGlobe $ / shares in Units, $ in Millions | Oct. 05, 2017USD ($)$ / sharesshares | Oct. 04, 2017USD ($) | Oct. 04, 2017$ / shares | Oct. 04, 2017$ / shares |
Business combination | ||||
Consideration | $ 2,328.2 | |||
Common share exchanged for cash | $ / shares | $ 17.50 | |||
Common share exchange ratio | shares | 0.3132 | |||
Share price | (per share) | $ 68.10 | $ 54.57 | ||
Share issuance costs | $ 2.5 |
Business combination - Other in
Business combination - Other information (Details) - USD ($) $ in Millions | Oct. 05, 2017 | Dec. 31, 2017 |
Business combination | ||
Accelerated share-based awards relating to post-acquisition services | $ 33.1 | |
Syndicated Credit Facility | ||
Business combination | ||
Notional amount | $ 3,750 | |
DigitalGlobe | ||
Business combination | ||
Pre-acquisition of replacement equity-settled awards | 15.8 | |
Post-acquisition of replacement equity-settled awards | 13.9 | |
Accelerated share-based awards relating to post-acquisition services | 33.1 | |
DigitalGlobe | Syndicated Credit Facility | ||
Business combination | ||
Notional amount | 3,750 | |
Initial draw | 3,096.7 | |
Debt issuance costs | 63.2 | |
Equity award-holders pay-out | 1,155.5 | |
Refinance debt of acquiree | 1,266.3 | |
Refinance debt | $ 741.5 |
Business combination - Dissenti
Business combination - Dissenting Shareholders (Details) - DigitalGlobe $ in Millions | Dec. 31, 2017USD ($)shareholder | Oct. 05, 2017USD ($)shareholder |
Business combination | ||
Number of dissenting preferred shareholders | 80,000 | |
Number of dissenting common shareholders | 352,225 | |
Number of common shareholders that withdrew their dissent | 90,000 | |
Merger consideration to be settled | $ | $ 3.1 | $ 3.1 |
Liability to dissenting shareholders | $ | $ 116.7 | $ 114.9 |
Federal Reserve Discount Rate | ||
Business combination | ||
Interest rate margin (as a percent) | 5.00% |
Business combination - Revenue
Business combination - Revenue and Earnings (Details) - DigitalGlobe - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended |
Dec. 31, 2017 | Dec. 31, 2017 | |
Business combination | ||
Revenue | $ 221.6 | |
Net earnings | $ 7.6 | |
Consolidated revenue | $ 2,307.9 | |
Consolidated net earnings | $ 41.7 |
Business combination - Consider
Business combination - Consideration transferred (Details) - DigitalGlobe - USD ($) $ in Millions | Dec. 31, 2017 | Oct. 05, 2017 |
Business combination | ||
Cash paid | $ 1,131 | $ 1,131 |
Shares issued | 1,063.4 | |
Merger consideration to be settled | 3.1 | 3.1 |
Liability to dissenting shareholders | $ 116.7 | 114.9 |
Issuance of replacement equity-settled awards | 15.8 | |
Purchase consideration | $ 2,328.2 |
Business combination - Prelimin
Business combination - Preliminary estimated fair value (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Oct. 05, 2017 | Dec. 31, 2016 | Jan. 01, 2016 | Dec. 31, 2015 |
Assets and liabilities | |||||
Goodwill | $ 2,374.4 | $ 699.5 | $ 697 | $ 697 | |
DigitalGlobe | |||||
Assets and liabilities | |||||
Cash and cash equivalents | 170.6 | $ 170.6 | |||
Trade and other receivables | 142.2 | ||||
Financial assets, other | 13.4 | ||||
Current tax assets | 0.1 | ||||
Non-financial assets | 93.4 | ||||
Property, plant and equipment | 695.8 | ||||
Definite life intangible assets | 1,439.8 | ||||
Total assets | 2,555.3 | ||||
Trade and other payables | 83.2 | ||||
Current tax liabilities | 2.7 | ||||
Provisions | 1.4 | ||||
Employee benefits | 29.1 | ||||
Non-financial liabilities | 354 | ||||
Deferred tax liabilities | 149.6 | ||||
Long-term debt | 1,276 | ||||
Total liabilities | 1,896 | ||||
Fair value of net identifiable assets acquired | 659.3 | ||||
Goodwill | $ 1,668.9 | $ 1,668.9 |
Business combination - Trade re
Business combination - Trade receivable and Goodwill (Details) - DigitalGlobe - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Oct. 05, 2017 | |
Business combination | ||
Trade and other receivables, gross | $ 144.1 | |
Estimated to be uncollectable | $ 1.9 | |
Investment banking fees, legal, tax, consulting and other acquisition and integration costs | $ 59.9 |
Trade and other receivables (De
Trade and other receivables (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 | Jan. 01, 2016 |
Trade and other receivables | |||
Trade accounts receivable, net | $ 273.1 | $ 175.9 | |
Orbital receivables, current portion | 30 | 27.1 | |
Other | 45.1 | 28.1 | |
Trade and other receivables, Total | $ 348.2 | $ 231.1 | $ 273.9 |
Financial assets and liabilit85
Financial assets and liabilities, other - Financial assets, other (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 | Jan. 01, 2016 |
Financial assets, other | |||
Financial assets | $ 84.1 | $ 125.6 | |
Current portion | (16.3) | (64.7) | $ (47.4) |
Non-current portion | 67.8 | 60.9 | $ 55.1 |
Restricted cash | |||
Financial assets, other | |||
Financial assets | 23 | 25.2 | |
Current portion | (5.7) | (8.6) | |
Non-current portion | 17.3 | 16.6 | |
Long-term investments | |||
Financial assets, other | |||
Financial assets | 27.5 | 24.4 | |
Non-current portion | 27.4 | 24.4 | |
Short-term investments | |||
Financial assets, other | |||
Financial assets | 0.8 | 5.8 | |
Notes receivable | |||
Financial assets, other | |||
Financial assets | 20.3 | 52.4 | |
Derivative financial instruments | |||
Financial assets, other | |||
Financial assets | 12.5 | 17.8 | |
Current portion | (9.6) | (11.8) | |
Non-current portion | $ 2.9 | $ 5.9 |
Financial assets and liabilit86
Financial assets and liabilities, other - Financial liabilities, other (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 | Jan. 01, 2016 |
Financial liabilities, other | |||
Financial liabilities | $ 32.7 | $ 32.7 | |
Current portion | (18.9) | (17.3) | $ (32) |
Non-current portion | 13.8 | 15.4 | $ 21.4 |
Non-trade payables | |||
Financial liabilities, other | |||
Financial liabilities | 23.8 | 18 | |
Current portion | (12.1) | (5.4) | |
Non-current portion | 11.7 | 12.6 | |
Derivative financial instruments | |||
Financial liabilities, other | |||
Financial liabilities | 8.9 | 14.7 | |
Current portion | (6.8) | (11.9) | |
Non-current portion | $ 2.1 | $ 2.8 |
Maturities of certain current87
Maturities of certain current assets and liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 | Jan. 01, 2016 |
Maturities of certain current assets and liabilities: | |||
Construction contract assets | $ 128.3 | $ 85.3 | $ 143.3 |
Inventories | 96.5 | 97.6 | 98.9 |
Non-financial assets | 125.2 | 124.2 | 120.6 |
Non-financial liabilities | 209.2 | 12.9 | 16.3 |
Construction contract liabilities | 258.9 | 293 | $ 438.4 |
Less than one year/2018 | |||
Maturities of certain current assets and liabilities: | |||
Construction contract assets | 104.5 | 85.3 | |
Inventories | 52 | 64.1 | |
Non-financial assets | 110.9 | 100.5 | |
Non-financial liabilities | 209.2 | 12.9 | |
Construction contract liabilities | 243.3 | 282.4 | |
Due after one year | |||
Maturities of certain current assets and liabilities: | |||
Construction contract assets | 23.8 | ||
Inventories | 44.5 | 33.5 | |
Non-financial assets | 14.3 | 23.7 | |
Construction contract liabilities | $ 15.6 | $ 10.6 |
Non-financial assets and liab88
Non-financial assets and liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 | Jan. 01, 2016 |
Non-financial assets and liabilities | |||
Advances to suppliers | $ 81.5 | $ 110.3 | |
Prepaid expenses | 60 | 18.1 | |
Deferred contract costs | 20 | ||
Equity investment in joint ventures | 27.4 | ||
Non-financial assets | 188.9 | 128.4 | |
Current portion | (125.2) | (124.2) | $ (120.6) |
Non-current portion | 63.7 | 4.2 | 3.5 |
Deferred revenue | 340.9 | 11.9 | |
Lease inducements | 35.4 | 4.3 | |
Lease liability acquired | 6.7 | 9.9 | |
Other | 2.6 | 2.6 | |
Non-financial liabilities | 385.6 | 28.7 | |
Current portion | (209.2) | (12.9) | (16.3) |
Non-current portion | $ 176.4 | $ 15.8 | $ 18.7 |
Orbital receivables (Details)
Orbital receivables (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 | Jan. 01, 2016 |
Orbital receivables | |||
Orbital receivables | $ 454.2 | $ 445.5 | |
Current portion | (30) | (27.1) | |
Non-current portion | 424.2 | $ 418.4 | $ 409.7 |
Total contractual cash flows | 788.4 | ||
Less than one year/2018 | |||
Orbital receivables | |||
Orbital receivables | 30 | ||
Total contractual cash flows | 57.8 | ||
1-2 Years/2019 | |||
Orbital receivables | |||
Orbital receivables | 29.4 | ||
Total contractual cash flows | 60.2 | ||
2-3 Years/2020 | |||
Orbital receivables | |||
Orbital receivables | 37.4 | ||
Total contractual cash flows | 65.8 | ||
3-4 Years/2021 | |||
Orbital receivables | |||
Orbital receivables | 42.5 | ||
Total contractual cash flows | 66.6 | ||
4-5 Years/2022 | |||
Orbital receivables | |||
Orbital receivables | 47.7 | ||
Total contractual cash flows | 71.3 | ||
More than five years | |||
Orbital receivables | |||
Orbital receivables | 267.2 | ||
Total contractual cash flows | $ 466.7 | ||
Orbital receivables | Minimum | |||
Orbital receivables | |||
Present value discount rate of receivable (in percent) | 6.00% | 6.00% | |
Orbital receivables | Maximum | |||
Orbital receivables | |||
Present value discount rate of receivable (in percent) | 10.00% | 10.00% | |
Launched | |||
Orbital receivables | |||
Orbital receivables | $ 394.6 | $ 367.9 | |
Current portion | (30) | (27.1) | |
Non-current portion | 364.6 | 340.8 | |
Launched | Less than one year/2018 | |||
Orbital receivables | |||
Orbital receivables | 30 | ||
Launched | 1-2 Years/2019 | |||
Orbital receivables | |||
Orbital receivables | 29.1 | ||
Launched | 2-3 Years/2020 | |||
Orbital receivables | |||
Orbital receivables | 35.7 | ||
Launched | 3-4 Years/2021 | |||
Orbital receivables | |||
Orbital receivables | 38.8 | ||
Launched | 4-5 Years/2022 | |||
Orbital receivables | |||
Orbital receivables | 41.8 | ||
Launched | More than five years | |||
Orbital receivables | |||
Orbital receivables | 219.2 | ||
Unlaunched | |||
Orbital receivables | |||
Orbital receivables | 59.6 | 77.6 | |
Non-current portion | 59.6 | $ 77.6 | |
Unlaunched | 1-2 Years/2019 | |||
Orbital receivables | |||
Orbital receivables | 0.3 | ||
Unlaunched | 2-3 Years/2020 | |||
Orbital receivables | |||
Orbital receivables | 1.7 | ||
Unlaunched | 3-4 Years/2021 | |||
Orbital receivables | |||
Orbital receivables | 3.7 | ||
Unlaunched | 4-5 Years/2022 | |||
Orbital receivables | |||
Orbital receivables | 5.9 | ||
Unlaunched | More than five years | |||
Orbital receivables | |||
Orbital receivables | $ 48 |
Orbital receivables - Revolving
Orbital receivables - Revolving securitization facility agreement (Details) - USD ($) $ in Millions | Dec. 15, 2016 | Sep. 30, 2016 | Dec. 31, 2016 | Dec. 31, 2017 |
Orbital receivables | ||||
Net proceeds from sale of orbital receivables | $ 123.2 | |||
Revolving securitization facility | ||||
Orbital receivables | ||||
Maximum borrowing capacity | $ 400 | |||
Book value of orbital receivable sold under the facility | $ 50.6 | $ 61.5 | ||
Net proceeds from sale of orbital receivables | 53.9 | 69.2 | ||
Gross proceeds from sale of orbital receivables | 54.6 | 72.3 | ||
Setup and transaction fees | $ 0.6 | $ 3.1 | ||
Unamortized balance | $ 106.3 | |||
Revolving securitization facility | Maximum | ||||
Orbital receivables | ||||
Eligible orbital receivable sales term | 7 years |
Property, plant and equipment91
Property, plant and equipment (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Property, plant and equipment | ||
Property, plant and equipment at beginning of period | $ 360 | |
Property, plant and equipment at end of period | 1,054.9 | $ 360 |
Expenditures recognised property under construction | $ 119.6 | $ 43.6 |
Minimum | ||
Property, plant and equipment | ||
Capitalisation rate of borrowing costs eligible for capitalisation | 3.40% | 3.30% |
Maximum | ||
Property, plant and equipment | ||
Capitalisation rate of borrowing costs eligible for capitalisation | 4.60% | 3.80% |
Land and buildings | ||
Property, plant and equipment | ||
Property, plant and equipment at beginning of period | $ 179.2 | |
Property, plant and equipment at end of period | 178.4 | $ 179.2 |
Leasehold improvements | ||
Property, plant and equipment | ||
Property, plant and equipment at beginning of period | 26.8 | |
Property, plant and equipment at end of period | 80.6 | 26.8 |
Equipment | ||
Property, plant and equipment | ||
Property, plant and equipment at beginning of period | 136.9 | |
Property, plant and equipment at end of period | 173.8 | 136.9 |
Satellites | ||
Property, plant and equipment | ||
Property, plant and equipment at end of period | 562.4 | |
Furniture and fixtures | ||
Property, plant and equipment | ||
Property, plant and equipment at beginning of period | 3.6 | |
Property, plant and equipment at end of period | 4.4 | 3.6 |
Computer hardware | ||
Property, plant and equipment | ||
Property, plant and equipment at beginning of period | 13.5 | |
Property, plant and equipment at end of period | 55.3 | 13.5 |
Cost | ||
Property, plant and equipment | ||
Property, plant and equipment at beginning of period | 547.8 | 506.2 |
Additions | 695.8 | 41.6 |
Acquired from business combination (note 9) | 58.3 | |
Disposals | (2.1) | (2.7) |
Foreign currency translation | 6.5 | 2.7 |
Property, plant and equipment at end of period | 1,306.3 | 547.8 |
Cost | Land and buildings | ||
Property, plant and equipment | ||
Property, plant and equipment at beginning of period | 194.4 | 191 |
Additions | 0.5 | 3 |
Acquired from business combination (note 9) | 2.3 | |
Foreign currency translation | 1 | 0.4 |
Property, plant and equipment at end of period | 198.2 | 194.4 |
Cost | Leasehold improvements | ||
Property, plant and equipment | ||
Property, plant and equipment at beginning of period | 47.2 | 31.7 |
Additions | 42 | 15.2 |
Acquired from business combination (note 9) | 15.7 | |
Disposals | (0.1) | (0.2) |
Foreign currency translation | 1 | 0.5 |
Property, plant and equipment at end of period | 105.8 | 47.2 |
Cost | Equipment | ||
Property, plant and equipment | ||
Property, plant and equipment at beginning of period | 247.6 | 232.2 |
Additions | 35 | 15.3 |
Acquired from business combination (note 9) | 24.9 | |
Disposals | (0.3) | (0.6) |
Foreign currency translation | 1.4 | 0.7 |
Property, plant and equipment at end of period | 308.6 | 247.6 |
Cost | Satellites | ||
Property, plant and equipment | ||
Additions | 577.9 | |
Acquired from business combination (note 9) | 6.3 | |
Property, plant and equipment at end of period | 584.2 | |
Cost | Furniture and fixtures | ||
Property, plant and equipment | ||
Property, plant and equipment at beginning of period | 9.4 | 7.4 |
Additions | 1.2 | 1.9 |
Acquired from business combination (note 9) | 0.3 | |
Disposals | (0.1) | |
Foreign currency translation | 0.3 | 0.2 |
Property, plant and equipment at end of period | 11.2 | 9.4 |
Cost | Computer hardware | ||
Property, plant and equipment | ||
Property, plant and equipment at beginning of period | 49.2 | 43.9 |
Additions | 39.2 | 6.2 |
Acquired from business combination (note 9) | 8.8 | |
Disposals | (1.7) | (1.8) |
Foreign currency translation | 2.8 | 0.9 |
Property, plant and equipment at end of period | 98.3 | 49.2 |
Accumulated depreciation | ||
Property, plant and equipment | ||
Property, plant and equipment at beginning of period | (187.8) | (154.9) |
Depreciation expense | 61.1 | 34 |
Disposals | 2 | 2.6 |
Foreign currency translation | (4.5) | (1.5) |
Property, plant and equipment at end of period | (251.4) | (187.8) |
Accumulated depreciation | Land and buildings | ||
Property, plant and equipment | ||
Property, plant and equipment at beginning of period | (15.2) | (11.1) |
Depreciation expense | 4.3 | 4 |
Foreign currency translation | (0.3) | (0.1) |
Property, plant and equipment at end of period | (19.8) | (15.2) |
Accumulated depreciation | Leasehold improvements | ||
Property, plant and equipment | ||
Property, plant and equipment at beginning of period | (20.4) | (17.2) |
Depreciation expense | 4.2 | 3.2 |
Disposals | 0.1 | 0.2 |
Foreign currency translation | (0.7) | (0.2) |
Property, plant and equipment at end of period | (25.2) | (20.4) |
Accumulated depreciation | Equipment | ||
Property, plant and equipment | ||
Property, plant and equipment at beginning of period | (110.7) | (89) |
Depreciation expense | 22.9 | 21.8 |
Disposals | 0.2 | 0.5 |
Foreign currency translation | (1.4) | (0.4) |
Property, plant and equipment at end of period | (134.8) | (110.7) |
Accumulated depreciation | Satellites | ||
Property, plant and equipment | ||
Depreciation expense | 21.8 | |
Property, plant and equipment at end of period | (21.8) | |
Accumulated depreciation | Furniture and fixtures | ||
Property, plant and equipment | ||
Property, plant and equipment at beginning of period | (5.8) | (5.1) |
Depreciation expense | 0.8 | 0.7 |
Disposals | 0.1 | |
Foreign currency translation | (0.2) | (0.1) |
Property, plant and equipment at end of period | (6.8) | (5.8) |
Accumulated depreciation | Computer hardware | ||
Property, plant and equipment | ||
Property, plant and equipment at beginning of period | (35.7) | (32.5) |
Depreciation expense | 7.1 | 4.3 |
Disposals | 1.7 | 1.8 |
Foreign currency translation | (1.9) | (0.7) |
Property, plant and equipment at end of period | $ (43) | $ (35.7) |
Property, plant and equipment -
Property, plant and equipment - Net book value of assets under finance leases (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Net book value of assets under finance leases | ||
Recognised finance lease as assets | $ 12.4 | $ 4.7 |
Computer hardware | ||
Net book value of assets under finance leases | ||
Recognised finance lease as assets | 5.2 | 4.6 |
Furniture and fixtures | ||
Net book value of assets under finance leases | ||
Recognised finance lease as assets | $ 7.2 | $ 0.1 |
Property, plant and equipment93
Property, plant and equipment - Satellite constellation (Details) $ in Millions | Dec. 31, 2017USD ($)item | Dec. 31, 2016USD ($) | Jan. 01, 2016USD ($) | Dec. 31, 2015USD ($) |
Property, plant and equipment | ||||
Property, plant and equipment | $ 1,054.9 | $ 360 | $ 351.5 | |
Satellites | ||||
Property, plant and equipment | ||||
Property, plant and equipment | 562.4 | |||
Satellites-in-orbit | ||||
Property, plant and equipment | ||||
Property, plant and equipment | 547.2 | |||
Satellites under construction | ||||
Property, plant and equipment | ||||
Property, plant and equipment | 15.2 | |||
Cost | ||||
Property, plant and equipment | ||||
Property, plant and equipment | 1,306.3 | 547.8 | $ 506.2 | |
Cost | Satellites | ||||
Property, plant and equipment | ||||
Property, plant and equipment | 584.2 | |||
Cost | Satellites-in-orbit | ||||
Property, plant and equipment | ||||
Property, plant and equipment | 569 | |||
Cost | Satellites under construction | ||||
Property, plant and equipment | ||||
Property, plant and equipment | 15.2 | |||
Accumulated depreciation | ||||
Property, plant and equipment | ||||
Property, plant and equipment | (251.4) | $ (187.8) | $ (154.9) | |
Accumulated depreciation | Satellites | ||||
Property, plant and equipment | ||||
Property, plant and equipment | (21.8) | |||
Accumulated depreciation | Satellites-in-orbit | ||||
Property, plant and equipment | ||||
Property, plant and equipment | $ (21.8) | |||
DigitalGlobe | Satellites-in-orbit | ||||
Property, plant and equipment | ||||
Number of satellites | item | 5 | |||
DigitalGlobe | Satellites under construction | ||||
Property, plant and equipment | ||||
Number of satellites | item | 1 |
Intangible assets and goodwil94
Intangible assets and goodwill (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Finite life intangible assets | ||
Balance at the beginning of the period | $ 331.6 | |
Balance at the end of the period | 1,753.4 | $ 331.6 |
Customer relationships | ||
Finite life intangible assets | ||
Balance at the beginning of the period | 9.1 | |
Balance at the end of the period | 605.8 | 9.1 |
Backlog | ||
Finite life intangible assets | ||
Balance at the end of the period | 307.7 | |
Technologies, including development in-process | ||
Finite life intangible assets | ||
Balance at the beginning of the period | 215.2 | |
Balance at the end of the period | 549.9 | 215.2 |
Software | ||
Finite life intangible assets | ||
Balance at the beginning of the period | 52.3 | |
Balance at the end of the period | 113.2 | 52.3 |
Trademarks and trade names | ||
Finite life intangible assets | ||
Balance at the beginning of the period | 53.3 | |
Balance at the end of the period | 85.8 | 53.3 |
Other | ||
Finite life intangible assets | ||
Balance at the beginning of the period | 1.7 | |
Balance at the end of the period | 91 | 1.7 |
Cost | ||
Finite life intangible assets | ||
Balance at the beginning of the period | 512 | 451.6 |
Purchase of intangible assets | 1,439.8 | 12.3 |
Acquired from business combination (note 9) | 30.7 | |
Development of intangible assets | 56 | 49.2 |
Disposals | (0.2) | (1.7) |
Foreign currency translation | 3.1 | 0.6 |
Balance at the end of the period | 2,041.4 | 512 |
Cost | Customer relationships | ||
Finite life intangible assets | ||
Balance at the beginning of the period | 13.9 | 13.9 |
Purchase of intangible assets | 608.2 | |
Foreign currency translation | 0.1 | |
Balance at the end of the period | 622.2 | 13.9 |
Cost | Backlog | ||
Finite life intangible assets | ||
Purchase of intangible assets | 331 | |
Balance at the end of the period | 331 | |
Cost | Technologies, including development in-process | ||
Finite life intangible assets | ||
Balance at the beginning of the period | 299.2 | 251.2 |
Purchase of intangible assets | 317.8 | |
Development of intangible assets | 56 | 49.2 |
Disposals | (1.2) | |
Balance at the end of the period | 673 | 299.2 |
Cost | Software | ||
Finite life intangible assets | ||
Balance at the beginning of the period | 122.3 | 110.1 |
Purchase of intangible assets | 46 | 12.3 |
Acquired from business combination (note 9) | 30.7 | |
Disposals | (0.2) | (0.5) |
Foreign currency translation | 2.5 | 0.4 |
Balance at the end of the period | 201.3 | 122.3 |
Cost | Trademarks and trade names | ||
Finite life intangible assets | ||
Balance at the beginning of the period | 67.4 | 67.4 |
Purchase of intangible assets | 36.8 | |
Balance at the end of the period | 104.2 | 67.4 |
Cost | Other | ||
Finite life intangible assets | ||
Balance at the beginning of the period | 9.2 | 9 |
Purchase of intangible assets | 100 | |
Foreign currency translation | 0.5 | 0.2 |
Balance at the end of the period | 109.7 | 9.2 |
Accumulated depreciation | ||
Finite life intangible assets | ||
Balance at the beginning of the period | (180.4) | (138.2) |
Amortization expense | 106 | 43.5 |
Disposals | 0.2 | 1.8 |
Foreign currency translation | 1.8 | 0.5 |
Balance at the end of the period | (288) | (180.4) |
Accumulated depreciation | Customer relationships | ||
Finite life intangible assets | ||
Balance at the beginning of the period | (4.8) | (3.7) |
Amortization expense | 11.5 | 1.1 |
Foreign currency translation | 0.1 | |
Balance at the end of the period | (16.4) | (4.8) |
Accumulated depreciation | Backlog | ||
Finite life intangible assets | ||
Amortization expense | 23.3 | |
Balance at the end of the period | (23.3) | |
Accumulated depreciation | Technologies, including development in-process | ||
Finite life intangible assets | ||
Balance at the beginning of the period | (84) | (61.3) |
Amortization expense | 39.1 | 24 |
Disposals | 1.3 | |
Balance at the end of the period | (123.1) | (84) |
Accumulated depreciation | Software | ||
Finite life intangible assets | ||
Balance at the beginning of the period | (70) | (55.8) |
Amortization expense | 17 | 14.3 |
Disposals | 0.2 | 0.5 |
Foreign currency translation | 1.3 | 0.4 |
Balance at the end of the period | (88.1) | (70) |
Accumulated depreciation | Trademarks and trade names | ||
Finite life intangible assets | ||
Balance at the beginning of the period | (14.1) | (10.7) |
Amortization expense | 4.3 | 3.4 |
Balance at the end of the period | (18.4) | (14.1) |
Accumulated depreciation | Other | ||
Finite life intangible assets | ||
Balance at the beginning of the period | (7.5) | (6.7) |
Amortization expense | 10.8 | 0.7 |
Foreign currency translation | 0.4 | 0.1 |
Balance at the end of the period | $ (18.7) | $ (7.5) |
Intangible assets and goodwil95
Intangible assets and goodwill - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Finite life intangible assets | ||
Borrowings costs capitalized | $ 4.9 | $ 2.8 |
Direct costs, selling, general and administration | ||
Finite life intangible assets | ||
Research and non-capitalizable development costs | 109.4 | 95.4 |
Technologies, including development in-process | ||
Finite life intangible assets | ||
Borrowings costs capitalized | $ 4.9 | $ 2.8 |
Minimum | ||
Finite life intangible assets | ||
Capitalization rate (as a percent) | 3.40% | 3.30% |
Maximum | ||
Finite life intangible assets | ||
Capitalization rate (as a percent) | 4.60% | 3.80% |
Intangible assets and goodwil96
Intangible assets and goodwill - Goodwill (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Changes in goodwill | ||
Balance at the beginning of the period | $ 699.5 | $ 697 |
Goodwill on acquisition of DigitalGlobe (note 9) | 1,668.9 | |
Foreign currency translation | 6 | 2.5 |
Balance at the end of the period | 2,374.4 | 699.5 |
Space Systems | ||
Changes in goodwill | ||
Balance at the beginning of the period | 625.1 | 622.8 |
Goodwill on acquisition of DigitalGlobe (note 9) | 142.9 | |
Foreign currency translation | 5.6 | 2.3 |
Balance at the end of the period | 773.6 | 625.1 |
Imagery | ||
Changes in goodwill | ||
Balance at the beginning of the period | 27 | 26.8 |
Goodwill on acquisition of DigitalGlobe (note 9) | 1,399.8 | |
Foreign currency translation | 0.4 | 0.2 |
Balance at the end of the period | 1,427.2 | 27 |
Services | ||
Changes in goodwill | ||
Balance at the beginning of the period | 47.4 | 47.4 |
Goodwill on acquisition of DigitalGlobe (note 9) | 126.2 | |
Balance at the end of the period | $ 173.6 | $ 47.4 |
Intangible assets and goodwil97
Intangible assets and goodwill - Goodwill Impairment (Details) | 1 Months Ended | 12 Months Ended | ||||
Sep. 30, 2017USD ($) | Dec. 31, 2017USD ($)item | Oct. 05, 2017USD ($) | Dec. 31, 2016USD ($) | Jan. 01, 2016USD ($) | Dec. 31, 2015USD ($) | |
Goodwill impairment | ||||||
Number of operating segments | item | 3 | |||||
Number of cash generating units | item | 3 | |||||
Goodwill | $ 2,374,400,000 | $ 699,500,000 | $ 697,000,000 | $ 697,000,000 | ||
Impairment of goodwill | $ 0 | |||||
Estimated period of return | 5 years | |||||
Maximum | Space Systems segment | ||||||
Goodwill impairment | ||||||
Discount rate | 7.50% | |||||
Perpetual growth rate | 2.00% | |||||
Maximum | Imagery segment | ||||||
Goodwill impairment | ||||||
Discount rate | 10.30% | |||||
Perpetual growth rate | 2.00% | |||||
Maximum | Services segment | ||||||
Goodwill impairment | ||||||
Discount rate | 10.30% | |||||
Perpetual growth rate | 3.00% | |||||
DigitalGlobe | ||||||
Goodwill impairment | ||||||
Goodwill | $ 1,668,900,000 | $ 1,668,900,000 | ||||
Goodwill reallocated from former segment (Surveillance and Intelligence) to current segments | 16,500,000 | |||||
DigitalGlobe | Space Systems segment | ||||||
Goodwill impairment | ||||||
Goodwill | 142,900,000 | |||||
DigitalGlobe | Imagery segment | ||||||
Goodwill impairment | ||||||
Goodwill | 1,399,800,000 | |||||
DigitalGlobe | Services segment | ||||||
Goodwill impairment | ||||||
Goodwill | $ 126,200,000 |
Provisions (Details)
Provisions (Details) - USD ($) $ in Millions | 12 Months Ended | ||||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Jan. 01, 2016 | |
Reconciliation of changes in other provisions | |||||
Balance at the beginning of the period | $ 37.9 | $ 38.1 | |||
Provisions made | 143.8 | 10.5 | |||
Provisions acquired | 1.4 | ||||
Provisions used | (15.6) | (11.2) | |||
Provisions reversed | (0.2) | (0.1) | |||
Unwinding of discount | 0.5 | 0.6 | |||
Foreign currency translation | 0.2 | ||||
Balance at the end of the period | 168 | 37.9 | |||
Current | $ 8.7 | $ 4.7 | $ 9.2 | ||
Non-current | 159.3 | 33.2 | $ 28.9 | ||
Total | 37.9 | 38.1 | 168 | 37.9 | |
Warranty and after sale service | |||||
Reconciliation of changes in other provisions | |||||
Balance at the beginning of the period | 33.8 | 28.7 | |||
Provisions made | 7.2 | 6.8 | |||
Provisions used | (2) | (2.1) | |||
Unwinding of discount | 0.4 | 0.4 | |||
Balance at the end of the period | 39.4 | 33.8 | |||
Current | 3.6 | 3.2 | |||
Non-current | 35.8 | 30.6 | |||
Total | 33.8 | 28.7 | 39.4 | 33.8 | |
Restructuring costs | |||||
Reconciliation of changes in other provisions | |||||
Balance at the beginning of the period | 1.5 | 6.4 | |||
Provisions made | 13.7 | 3.7 | |||
Provisions used | (12.7) | (8.5) | |||
Provisions reversed | (0.2) | (0.1) | |||
Balance at the end of the period | 2.3 | 1.5 | |||
Current | 2.3 | 1.5 | |||
Total | 1.5 | 6.4 | 2.3 | 1.5 | |
Liability to dissenting shareholders | |||||
Reconciliation of changes in other provisions | |||||
Provisions made | 118.3 | ||||
Balance at the end of the period | 118.3 | ||||
Current | 1.6 | ||||
Non-current | 116.7 | ||||
Total | 118.3 | 118.3 | |||
Others | |||||
Reconciliation of changes in other provisions | |||||
Balance at the beginning of the period | 2.6 | 3 | |||
Provisions made | 4.6 | ||||
Provisions acquired | 1.4 | ||||
Provisions used | (0.9) | (0.6) | |||
Unwinding of discount | 0.1 | 0.2 | |||
Foreign currency translation | 0.2 | ||||
Balance at the end of the period | 8 | 2.6 | |||
Current | 1.2 | ||||
Non-current | 6.8 | 2.6 | |||
Total | $ 2.6 | $ 3 | $ 8 | $ 2.6 |
Employee benefits - Employee be
Employee benefits - Employee benefit liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 | Jan. 01, 2016 |
Employee benefits | |||
Salary and benefits payable | $ 112.7 | $ 80.7 | |
Share-based payment plans | 13.7 | 5.3 | |
Pension and other post-retirement benefits | 215.1 | 241.5 | |
Employee benefits | 341.5 | 327.5 | |
Current portion | (123.9) | (89.4) | $ (76.9) |
Non current portion | $ 217.6 | $ 238.1 | $ 231.3 |
Employee benefits - Movement in
Employee benefits - Movement in net defined benefit liability - Pension (Details) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2016USD ($)item | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | |
Pension Plans | ||||
Employee benefits | ||||
Estimated contributions expected to be paid | $ 16.2 | |||
Net defined benefit liability (asset) at beginning of period | 176.4 | $ 177.1 | $ 168.7 | |
Current service cost | 6 | 6 | ||
Past service costs | 0.1 | 0.1 | ||
Liabilities extinguished/ assets distributed on settlement | (4.8) | |||
Interest cost (income) | 6.9 | 6.9 | ||
Total | 13 | 8.2 | ||
Actuarial loss (gain) arising from financial assumptions | 36.5 | 28.6 | ||
Actuarial loss (gain) arising from demographic assumptions | (4.6) | (9.3) | ||
Actuarial loss (gain) arising from experience adjustment | 6 | (2.5) | ||
Return on plan assets excluding interest income | (42.1) | (6.8) | ||
Foreign exchange adjustment | (0.2) | (0.2) | ||
Total | (4.4) | 9.8 | ||
Employer contributions | (9.3) | (9.6) | ||
Total | (9.3) | (9.6) | ||
Net defined benefit liability (asset) at end of period | $ 177.1 | $ 176.4 | $ 177.1 | |
Number of operating divisions that defined benefit pension plans were amended at | item | 1 | |||
Percentage of eligible participants | 44.00% | |||
Gain on settlement | $ 4.8 | |||
Discount rate | 3.90% | 3.90% | ||
Defined benefit obligation | ||||
Employee benefits | ||||
Discount rate | 3.90% | 3.40% | 3.90% | |
Defined benefit obligation | Pension Plans | ||||
Employee benefits | ||||
Net defined benefit liability (asset) at beginning of period | 654.8 | $ 614.4 | $ 626.6 | |
Current service cost | 6 | 6 | ||
Past service costs | 0.1 | 0.1 | ||
Liabilities extinguished/ assets distributed on settlement | (28.5) | |||
Interest cost (income) | 23.3 | 25.9 | ||
Total | 29.4 | 3.5 | ||
Actuarial loss (gain) arising from financial assumptions | 36.5 | 28.6 | ||
Actuarial loss (gain) arising from demographic assumptions | (4.6) | (9.3) | ||
Actuarial loss (gain) arising from experience adjustment | 6 | (2.5) | ||
Foreign exchange adjustment | 5.2 | 2 | ||
Total | 43.1 | 18.8 | ||
Plan participant contributions | 0.4 | 0.4 | ||
Benefit payments | (32.5) | (34.9) | ||
Total | (32.1) | (34.5) | ||
Net defined benefit liability (asset) at end of period | $ 614.4 | 654.8 | 614.4 | |
Fair value of plan assets | Pension Plans | ||||
Employee benefits | ||||
Net defined benefit liability (asset) at beginning of period | $ (478.4) | (437.3) | (457.9) | |
Liabilities extinguished/ assets distributed on settlement | 23.7 | |||
Interest cost (income) | (16.4) | (19) | ||
Total | (16.4) | 4.7 | ||
Return on plan assets excluding interest income | (42.1) | (6.8) | ||
Foreign exchange adjustment | (5.4) | (2.2) | ||
Total | (47.5) | (9) | ||
Employer contributions | (9.3) | (9.6) | ||
Plan participant contributions | (0.4) | (0.4) | ||
Benefit payments | 32.5 | 34.9 | ||
Total | 22.8 | 24.9 | ||
Net defined benefit liability (asset) at end of period | $ (437.3) | $ (478.4) | $ (437.3) |
Employee benefits - Plan assets
Employee benefits - Plan assets (Details) - Pension Plans - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Employee benefits | ||
Total pension plan assets | $ 478.4 | $ 437.3 |
Cash and cash equivalents | ||
Employee benefits | ||
Total pension plan assets | 6 | 3.4 |
Canadian equity securities | ||
Employee benefits | ||
Total pension plan assets | 18.8 | 18 |
U.S. equity securities | ||
Employee benefits | ||
Total pension plan assets | 13.6 | 13 |
Global equity securities | ||
Employee benefits | ||
Total pension plan assets | 0.5 | 0.4 |
Government bonds | ||
Employee benefits | ||
Total pension plan assets | 7.8 | 6.7 |
Corporate bonds | ||
Employee benefits | ||
Total pension plan assets | 6.5 | 7 |
Equity funds | ||
Employee benefits | ||
Total pension plan assets | 264.4 | 221.9 |
Fixed income funds | ||
Employee benefits | ||
Total pension plan assets | 152.9 | 159.2 |
Real estate funds | ||
Employee benefits | ||
Total pension plan assets | $ 7.9 | $ 7.7 |
Employee benefits - Movement102
Employee benefits - Movement in net defined benefit liability - Other post retirement plans (Details) $ in Millions | 3 Months Ended | 12 Months Ended | |
Dec. 31, 2017USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | |
Other post-retirement plans | |||
Employee benefits | |||
Estimated contributions expected to be paid | $ 1.9 | ||
Net defined benefit liability (asset) at beginning of period | 64.4 | $ 65.3 | |
Current service cost | 0.4 | 0.9 | |
Past service costs | (25.8) | (1.9) | |
Interest cost (income) | 2.3 | 2.6 | |
Total | (23.1) | 1.6 | |
Actuarial loss (gain) arising from financial assumptions | 1.5 | 1.5 | |
Actuarial loss (gain) arising from demographic assumptions | (0.2) | 1.7 | |
Actuarial loss (gain) arising from experience adjustment | (3.2) | (4.5) | |
Foreign exchange adjustment | 1.4 | 0.6 | |
Total | (0.5) | (0.7) | |
Employer contributions | (2.1) | (2.1) | |
Plan participant contributions | (0.3) | ||
Total | (2.1) | (1.8) | |
Net defined benefit liability (asset) at end of period | $ 38.7 | $ 38.7 | $ 64.4 |
Gain on settlement | $ 24.6 | ||
Discount rate | 3.42% | 3.42% | |
Defined benefit obligation | |||
Employee benefits | |||
Discount rate | 3.40% | 3.40% | 3.90% |
Defined benefit obligation | Other post-retirement plans | |||
Employee benefits | |||
Net defined benefit liability (asset) at beginning of period | $ 64.4 | $ 65.7 | |
Current service cost | 0.4 | 0.9 | |
Past service costs | (25.8) | (1.9) | |
Interest cost (income) | 2.3 | 2.6 | |
Total | (23.1) | 1.6 | |
Actuarial loss (gain) arising from financial assumptions | 1.5 | 1.5 | |
Actuarial loss (gain) arising from demographic assumptions | (0.2) | 1.7 | |
Actuarial loss (gain) arising from experience adjustment | (3.2) | (4.5) | |
Foreign exchange adjustment | 1.4 | 0.6 | |
Total | (0.5) | (0.7) | |
Plan participant contributions | (0.2) | (0.3) | |
Benefit payments | (2.3) | (2.5) | |
Total | (2.1) | (2.2) | |
Net defined benefit liability (asset) at end of period | $ 38.7 | 38.7 | 64.4 |
Fair value of plan assets | Other post-retirement plans | |||
Employee benefits | |||
Net defined benefit liability (asset) at beginning of period | (0.4) | ||
Employer contributions | (2.1) | (2.1) | |
Plan participant contributions | 0.2 | ||
Benefit payments | $ 2.3 | 2.5 | |
Total | $ 0.4 |
Employee benefits - Actuarial a
Employee benefits - Actuarial assumptions (Details) - Defined benefit obligation - Y | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Employee benefits | ||
Discount rate | 3.40% | 3.90% |
Future salary increases | 3.50% | |
Health care trends | 6.75% | 4.50% |
Longevity at age 65 for current pensioners, Males | 20 years 10 months 24 days | 20 years 10 months 24 days |
Longevity at age 65 for current pensioners, Females | 22 years 10 months 24 days | 23 years |
Longevity at age 65 for current pensioners aged 45, Males | 22 years 4 months 24 days | 22 years 4 months 24 days |
Longevity at age 65 for current pensioners aged 45, Females | 24 years 3 months 18 days | 24 years 6 months |
Weighted-average duration | 13.1 | 12.9 |
Minimum | ||
Employee benefits | ||
Future salary increases | 3.25% | |
Maximum | ||
Employee benefits | ||
Future salary increases | 3.75% |
Employee benefits - Sensitivity
Employee benefits - Sensitivity analysis (Details) - Defined benefit obligation $ in Millions | Dec. 31, 2017USD ($) |
Employee benefits | |
Increase of 1% | 1.00% |
Decrease of 1% | 1.00% |
Discount rate | |
Employee benefits | |
Increase in actuarial assumption | $ (78.3) |
Decrease in actuarial assumption | 96.6 |
Future salary growth | |
Employee benefits | |
Increase in actuarial assumption | 0.2 |
Decrease in actuarial assumption | (0.2) |
Health care trends rate | |
Employee benefits | |
Increase in actuarial assumption | 3.2 |
Decrease in actuarial assumption | (2.5) |
Future mortality | |
Employee benefits | |
Increase in actuarial assumption | (2.1) |
Decrease in actuarial assumption | $ 2.1 |
Employee benefits - Defined con
Employee benefits - Defined contribution plans (Details) $ in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2017CAD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | |
Employee benefits | |||
Costs related to defined contribution plans | $ 16.7 | $ 14.5 | |
Defined Contribution Plans | |||
Employee benefits | |||
Costs related to defined contribution plans | 15.2 | 14.1 | |
Executive Vice President and CFO | |||
Employee benefits | |||
Costs related to defined contribution plans | 1.5 | $ 0.4 | |
Estimated contributions expected to be paid | $ 5.3 | 4.2 | |
Employer contribution, quarterly amount | $ 0.5 | $ 0.4 | |
Term of employer contribution towards defined contribution plan | 33 months | 33 months |
Long-term debt (Details)
Long-term debt (Details) $ in Millions | Dec. 31, 2017CAD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016CAD ($) | Dec. 31, 2016USD ($) | Jan. 01, 2016USD ($) |
Long-term debt | |||||
Financing fees | $ (52.4) | $ (0.4) | |||
Total long-term debt | 2,961 | 600.7 | |||
Current portion | (18.1) | (101.9) | $ (2) | ||
Non-current portion | 2,942.9 | 498.8 | $ 710.7 | ||
Revolving loans payable | |||||
Long-term debt | |||||
Long-term debt | 454 | 241.5 | |||
Revolving loan payable In Canadian dollars | |||||
Long-term debt | |||||
Long-term debt | $ 25,000,000 | 18.6 | |||
Operating loan payable in Canadian dollars | |||||
Long-term debt | |||||
Long-term debt | $ 51,000,000 | 40.6 | $ 0 | ||
Term Loan A | |||||
Long-term debt | |||||
Long-term debt | 500 | ||||
Term B loan payable | |||||
Long-term debt | |||||
Long-term debt | 2,000 | ||||
2024 Term notes | |||||
Long-term debt | |||||
Long-term debt | 236.3 | ||||
2017 Term notes | |||||
Long-term debt | |||||
Long-term debt | 100 | ||||
Obligations under finance leases | |||||
Long-term debt | |||||
Long-term debt | 18.8 | $ 4.7 | |||
Total long-term debt | $ 18.8 |
Long-term debt - Narrative (Det
Long-term debt - Narrative (Details) - USD ($) $ in Millions | Oct. 05, 2017 | Feb. 28, 2017 | Feb. 22, 2017 | Dec. 31, 2017 | Dec. 31, 2016 |
Long-term debt | |||||
Premium on repayments of debt | $ 20 | ||||
DigitalGlobe | |||||
Long-term debt | |||||
Repayments of debt | $ 1,266 | ||||
Syndicated Credit Facility | |||||
Long-term debt | |||||
Aggregate principal amount | 3,750 | ||||
Syndicated Credit Facility | DigitalGlobe | |||||
Long-term debt | |||||
Aggregate principal amount | 3,750 | ||||
Revolving Credit Facility | |||||
Long-term debt | |||||
Letter of credit | $ 200 | ||||
First Lien Revolving Credit Facility | |||||
Long-term debt | |||||
Debt term | 4 years | ||||
Limit under which letters of credit can be issued | $ 1,150 | ||||
First Lien Revolving Credit Facility | DigitalGlobe | |||||
Long-term debt | |||||
Aggregate principal amount | 1,150 | ||||
Senior Secured First Lien Operating Facility | |||||
Long-term debt | |||||
Aggregate principal amount | $ 100 | ||||
Debt term | 4 years | ||||
Term Loan A | |||||
Long-term debt | |||||
Aggregate principal amount | $ 500 | ||||
Term Loan A Tranche 1 | |||||
Long-term debt | |||||
Aggregate principal amount | $ 250 | ||||
Debt term | 3 years | ||||
Term Loan A Tranche 2 | |||||
Long-term debt | |||||
Aggregate principal amount | $ 250 | ||||
Debt term | 4 years | ||||
Term B loan payable | |||||
Long-term debt | |||||
Aggregate principal amount | $ 2,000 | ||||
Debt term | 7 years | ||||
Percentage of amortization to original principal amount | 1.00% | ||||
Prepayment premium (as a percent) | 1.00% | ||||
Term of soft call prepayment premium | 6 months | ||||
Term B loan payable | DigitalGlobe | |||||
Long-term debt | |||||
Aggregate principal amount | $ 2,000 | ||||
Letter of credit | |||||
Long-term debt | |||||
Letter of credit | $ 125 | ||||
2024 Term notes | |||||
Long-term debt | |||||
Aggregate principal amount | $ 250 | ||||
Debt term | 12 years | ||||
Repayments of debt | $ 10.2 | ||||
2017 Term notes | |||||
Long-term debt | |||||
Aggregate principal amount | $ 100 | ||||
Repayments of debt | $ 100 | ||||
U.S. LIBOR | Term B loan payable | |||||
Long-term debt | |||||
Interest rate margin (as a percent) | 2.75% | ||||
Minimum | LIBOR and CDOR | Revolving Credit Facility and Term Loan A | |||||
Long-term debt | |||||
Interest rate margin (as a percent) | 1.20% | ||||
Maximum | LIBOR and CDOR | Revolving Credit Facility and Term Loan A | |||||
Long-term debt | |||||
Interest rate margin (as a percent) | 3.00% |
Long-term debt - Annual contrac
Long-term debt - Annual contractual principal repayments on long-term debt (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Long-term debt | ||
Total long-term debt | $ 2,961 | $ 600.7 |
Syndicated Credit Facility | ||
Long-term debt | ||
Total long-term debt | 2,447.6 | |
Senior Term Notes Payable | ||
Long-term debt | ||
Total long-term debt | 494.6 | |
Obligations under finance leases | ||
Long-term debt | ||
Total long-term debt | 18.8 | |
Less than one year/2018 | ||
Long-term debt | ||
Total long-term debt | 18.1 | |
Less than one year/2018 | Syndicated Credit Facility | ||
Long-term debt | ||
Total long-term debt | 11.4 | |
Less than one year/2018 | Obligations under finance leases | ||
Long-term debt | ||
Total long-term debt | 6.7 | |
Between one and five years | ||
Long-term debt | ||
Total long-term debt | 1,055.2 | |
Between one and five years | Syndicated Credit Facility | ||
Long-term debt | ||
Total long-term debt | 548.5 | |
Between one and five years | Senior Term Notes Payable | ||
Long-term debt | ||
Total long-term debt | 494.6 | |
Between one and five years | Obligations under finance leases | ||
Long-term debt | ||
Total long-term debt | 12.1 | |
More than five years | ||
Long-term debt | ||
Total long-term debt | 1,887.7 | |
More than five years | Syndicated Credit Facility | ||
Long-term debt | ||
Total long-term debt | $ 1,887.7 |
Shareholders' equity (Details)
Shareholders' equity (Details) $ / shares in Units, $ in Millions | 12 Months Ended | |||
Dec. 31, 2017$ / shares$ / shares | Dec. 31, 2017USD ($)$ / sharesshares | Dec. 31, 2016$ / shares | Dec. 31, 2016USD ($)shares | |
Shareholders' equity | ||||
Par value per share | $ / shares | $ 0 | $ 0 | ||
Balance at beginning of period | $ 863 | $ 800.4 | ||
Balance at end of period | $ 2,013.6 | $ 863 | ||
Balance at beginning of period (in shares) | shares | 36,378,278 | 36,227,952 | ||
Balance at end of period (in shares) | shares | 56,211,566 | 36,378,278 | ||
Dividend per common share | $ / shares | $ 1.48 | $ 1.48 | ||
Dividends | $ 47.4 | $ 41 | ||
DigitalGlobe | ||||
Shareholders' equity | ||||
Common shares issued | $ 1,071.1 | |||
Common shares issued (in shares) | shares | 19,644,240 | |||
Share Capital | ||||
Shareholders' equity | ||||
Balance at beginning of period | $ 466.9 | 455.8 | ||
Balance at end of period | 1,550.3 | 466.9 | ||
Share Capital | DigitalGlobe | ||||
Shareholders' equity | ||||
Common shares issued | 1,071.1 | |||
Employee Share Purchase Plan | ||||
Shareholders' equity | ||||
Common shares issued | $ 4.5 | $ 4.1 | ||
Common shares issued (in shares) | shares | 83,453 | 66,466 | ||
Employee Share Purchase Plan | Share Capital | ||||
Shareholders' equity | ||||
Common shares issued | $ 4.5 | $ 4.1 | ||
Equity-settled SARs | ||||
Shareholders' equity | ||||
Common shares issued (in shares) | shares | 105,595 | 83,860 | ||
Equity-settled SARs | Share Capital | ||||
Shareholders' equity | ||||
Common shares issued | $ 7.8 | $ 7 |
Earnings per common share (Deta
Earnings per common share (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Basic earnings per share | ||
Net earnings | $ 100.4 | $ 105.6 |
Weighted average number of common shares outstanding | 41,140,321 | 36,306,880 |
Deferred share units outstanding | 68,007 | 70,476 |
Weighted average number of common shares outstanding - basic | 41,208,328 | 36,377,356 |
Earnings per common share - basic | $ 2.44 | $ 2.90 |
Diluted earnings per share | ||
Net earnings - basic | $ 100.4 | $ 105.6 |
Effect of potentially dilutive share appreciation rights | (2.4) | |
Net earnings - dilutive | $ 100.4 | $ 103.2 |
Weighted average number of common shares outstanding - basic | 41,208,328 | 36,377,356 |
Effect of potentially dilutive share appreciation rights | 24,743 | 140,136 |
Effect of restricted share units | 76,810 | |
Weighted average number of common shares outstanding - diluted | 41,309,881 | 36,517,492 |
Earnings per common share - diluted | $ 2.43 | $ 2.83 |
Share appreciation rights excluded from diluted weighted average number of shares | 4,501,000 | 3,665,000 |
Share-based payment plans - Emp
Share-based payment plans - Employee share purchase plan (Details) - Employee Share Purchase Plan | Oct. 01, 2001CAD ($)shares | Dec. 31, 2017CAD ($)EquityInstruments | Dec. 31, 2016CAD ($)EquityInstruments |
Share-based payment plans | |||
Number of shares authorised for issue | shares | 1,500,000 | ||
Maximum number of shares issued in a year | shares | 300,000 | ||
Share issue price as a percentage of market price | 85.00% | ||
Maximum employee allocation as a percentage of salary | 10.00% | ||
Maximum employee allocation in dollars per annum | $ | $ 20,000 | ||
Common shares issued under employee share purchase plan | EquityInstruments | 83,453 | 66,466 | |
Average share price | $ | $ 59.58 | $ 70.56 |
Share-based payment plans - Sha
Share-based payment plans - Share appreciation rights (Details) - Cash-settled SARs | 12 Months Ended |
Dec. 31, 2017 | |
2013 plan | |
Share-based payment plans | |
Vesting period | 3 years |
Vesting percentage | 33.00% |
Expiration period | 5 years |
2017 plan | |
Share-based payment plans | |
Vesting period | 4 years |
Vesting percentage | 25.00% |
Expiration period | 10 years |
Share-based payment plans - Cas
Share-based payment plans - Cash settled SARs - Summary (Details) - Cash-settled SARs | 12 Months Ended | |
Dec. 31, 2017CAD ($)EquityInstruments | Dec. 31, 2016CAD ($)EquityInstruments | |
Number of SARs | ||
Outstanding, beginning of year | EquityInstruments | 3,031,760 | 2,103,627 |
SARs issued | EquityInstruments | 25,523 | 1,135,266 |
SARs exercised | EquityInstruments | (227,633) | (147,665) |
SARs cancelled | EquityInstruments | (190,793) | (59,468) |
Outstanding, end of year | EquityInstruments | 2,638,857 | 3,031,760 |
SARs exercisable, end of year | EquityInstruments | 1,651,216 | 1,323,249 |
Weighted average exercise price | ||
Outstanding, beginning of year | $ | $ 79.64 | $ 80.39 |
Issued | $ | 68.56 | 75.48 |
SARs exercised | $ | 54.54 | 54.06 |
Cancelled | $ | 81.53 | 90.06 |
Outstanding, end of year | $ | 81.56 | 79.64 |
SARs exercisable, end of year | $ | $ 83.61 | $ 78.92 |
Share-based payment plans - 114
Share-based payment plans - Cash settled SARs - Exercise price (Details) - Cash-settled SARs | 12 Months Ended | ||
Dec. 31, 2017CAD ($)EquityInstruments | Dec. 31, 2016CAD ($)EquityInstruments | Dec. 31, 2015CAD ($)EquityInstruments | |
Share-based payment plans | |||
Number of SARs - Outstanding | EquityInstruments | 2,638,857 | 3,031,760 | 2,103,627 |
Weighted average remaining contractual life (in years) - Outstanding | 3 years 6 months | 4 years 2 months 12 days | |
Weighted average exercise price per SAR - Outstanding | $ 81.56 | $ 79.64 | $ 80.39 |
Weighted average exercise price per SAR - Outstanding | $ 81.57 | ||
Number of SARs - Exercisable | EquityInstruments | 1,651,216 | 1,323,249 | |
Weighted average remaining contractual life (in years) - Exercisable | 2 years 4 months 24 days | 2 years 1 month 6 days | |
Weighted average exercise price per SAR - Exercisable | $ 83.61 | $ 78.92 | |
$40.61 to $51.95 | |||
Share-based payment plans | |||
Number of SARs - Outstanding | EquityInstruments | 123,592 | ||
Weighted average remaining contractual life (in years) - Outstanding | 7 months 6 days | ||
Weighted average exercise price per SAR - Outstanding | $ 48.58 | ||
Number of SARs - Exercisable | EquityInstruments | 123,592 | ||
Weighted average remaining contractual life (in years) - Exercisable | 7 months 6 days | ||
Weighted average exercise price per SAR - Exercisable | $ 48.58 | ||
$56.95 to $70.46 | |||
Share-based payment plans | |||
Number of SARs - Outstanding | EquityInstruments | 612,364 | ||
Weighted average remaining contractual life (in years) - Outstanding | 7 years 8 months 12 days | ||
Weighted average exercise price per SAR - Outstanding | $ 66.65 | ||
Number of SARs - Exercisable | EquityInstruments | 195,833 | ||
Weighted average remaining contractual life (in years) - Exercisable | 5 years 7 months 6 days | ||
Weighted average exercise price per SAR - Exercisable | $ 66.15 | ||
$71.25 to $83.36 | |||
Share-based payment plans | |||
Number of SARs - Outstanding | EquityInstruments | 825,143 | ||
Weighted average remaining contractual life (in years) - Outstanding | 1 year 10 months 24 days | ||
Weighted average exercise price per SAR - Outstanding | $ 82.02 | ||
Number of SARs - Exercisable | EquityInstruments | 608,331 | ||
Weighted average remaining contractual life (in years) - Exercisable | 1 year 4 months 24 days | ||
Weighted average exercise price per SAR - Exercisable | $ 81.97 | ||
$56.95 to $69.73 | |||
Share-based payment plans | |||
Number of SARs - Outstanding | EquityInstruments | 738,579 | ||
Weighted average remaining contractual life (in years) - Outstanding | 7 years 9 months 18 days | ||
Weighted average exercise price per SAR - Outstanding | $ 65.92 | ||
Number of SARs - Exercisable | EquityInstruments | 161,005 | ||
Weighted average remaining contractual life (in years) - Exercisable | 1 year 1 month 6 days | ||
Weighted average exercise price per SAR - Exercisable | $ 62.54 | ||
$78.54 to $82.73 | |||
Share-based payment plans | |||
Number of SARs - Outstanding | EquityInstruments | 887,472 | ||
Weighted average remaining contractual life (in years) - Outstanding | 2 years 9 months 18 days | ||
Weighted average exercise price per SAR - Outstanding | $ 82.10 | ||
Number of SARs - Exercisable | EquityInstruments | 554,515 | ||
Weighted average remaining contractual life (in years) - Exercisable | 1 year 10 months 24 days | ||
Weighted average exercise price per SAR - Exercisable | $ 81.86 | ||
$83.60 to $90.48 | |||
Share-based payment plans | |||
Number of SARs - Outstanding | EquityInstruments | 863,475 | 923,242 | |
Weighted average remaining contractual life (in years) - Outstanding | 2 years 6 months | 3 years 6 months | |
Weighted average exercise price per SAR - Outstanding | $ 86.82 | $ 86.82 | |
Number of SARs - Exercisable | EquityInstruments | 621,825 | 364,546 | |
Weighted average remaining contractual life (in years) - Exercisable | 2 years 3 months 18 days | 3 years 1 month 6 days | |
Weighted average exercise price per SAR - Exercisable | $ 86.92 | $ 87 | |
$92.13 to $97.93 | |||
Share-based payment plans | |||
Number of SARs - Outstanding | EquityInstruments | 337,875 | 358,875 | |
Weighted average remaining contractual life (in years) - Outstanding | 2 years 4 months 24 days | 3 years 4 months 24 days | |
Weighted average exercise price per SAR - Outstanding | $ 94.07 | $ 94.06 | |
Number of SARs - Exercisable | EquityInstruments | 225,227 | 119,591 | |
Weighted average remaining contractual life (in years) - Exercisable | 2 years 4 months 24 days | 3 years 4 months 24 days | |
Weighted average exercise price per SAR - Exercisable | $ 94.07 | $ 94.06 | |
Minimum | $40.61 to $51.95 | |||
Share-based payment plans | |||
Exercise price | 40.61 | ||
Minimum | $56.95 to $70.46 | |||
Share-based payment plans | |||
Exercise price | 56.95 | ||
Minimum | $71.25 to $83.36 | |||
Share-based payment plans | |||
Exercise price | 71.25 | ||
Minimum | $56.95 to $69.73 | |||
Share-based payment plans | |||
Exercise price | 56.95 | ||
Minimum | $78.54 to $82.73 | |||
Share-based payment plans | |||
Exercise price | 78.54 | ||
Minimum | $83.60 to $90.48 | |||
Share-based payment plans | |||
Exercise price | 83.60 | 83.60 | |
Minimum | $92.13 to $97.93 | |||
Share-based payment plans | |||
Exercise price | 93.30 | 92.13 | |
Maximum | $40.61 to $51.95 | |||
Share-based payment plans | |||
Exercise price | 51.95 | ||
Maximum | $56.95 to $70.46 | |||
Share-based payment plans | |||
Exercise price | 70.46 | ||
Maximum | $71.25 to $83.36 | |||
Share-based payment plans | |||
Exercise price | 82.73 | ||
Maximum | $56.95 to $69.73 | |||
Share-based payment plans | |||
Exercise price | 69.73 | ||
Maximum | $78.54 to $82.73 | |||
Share-based payment plans | |||
Exercise price | 82.73 | ||
Maximum | $83.60 to $90.48 | |||
Share-based payment plans | |||
Exercise price | 90.48 | 90.48 | |
Maximum | $92.13 to $97.93 | |||
Share-based payment plans | |||
Exercise price | $ 97.93 | $ 97.93 |
Share-based payment plans - Equ
Share-based payment plans - Equity settled SARs - Summary (Details) - Equity-settled SARs | 12 Months Ended | |
Dec. 31, 2017CAD ($)EquityInstruments | Dec. 31, 2016CAD ($)EquityInstruments | |
Number of SARs | ||
Outstanding, beginning of year | EquityInstruments | 3,161,657 | 2,233,299 |
SARs issued | EquityInstruments | 499,339 | 1,161,900 |
SARs exercised | EquityInstruments | (201,155) | (189,708) |
SARs cancelled | EquityInstruments | (121,693) | (43,834) |
Outstanding, end of year | EquityInstruments | 3,338,148 | 3,161,657 |
SARs exercisable, end of year | EquityInstruments | 1,812,010 | 1,395,572 |
Weighted average exercise price | ||
Outstanding, beginning of year | $ | $ 78.04 | $ 81.18 |
Issued | $ | 75.32 | 68.09 |
SARs exercised | $ | 63.07 | 53.65 |
Cancelled | $ | 76.02 | 80.08 |
Outstanding, end of year | $ | 78.61 | 78.04 |
SARs exercisable, end of year | $ | $ 83.50 | $ 82.70 |
Share-based payment plans - 116
Share-based payment plans - Equity settled SARs - Exercise price (Details) - Equity-settled SARs | 12 Months Ended | ||
Dec. 31, 2017CAD ($)EquityInstruments | Dec. 31, 2016CAD ($)EquityInstruments | Dec. 31, 2015CAD ($)EquityInstruments | |
Share-based payment plans | |||
Number of SARs - Outstanding | EquityInstruments | 3,338,148 | 3,161,657 | 2,233,299 |
Weighted average remaining contractual life (in years) - Outstanding | 5 years 2 months 12 days | 5 years 3 months 18 days | |
Weighted average exercise price per SAR - Outstanding | $ 78.61 | $ 78.04 | $ 81.18 |
Weighted average exercise price per SAR - Outstanding | $ 78.60 | ||
Number of SARs - Exercisable | EquityInstruments | 1,812,010 | 1,395,572 | |
Weighted average remaining contractual life (in years) - Exercisable | 2 years 8 months 12 days | 2 years 7 months 6 days | |
Weighted average exercise price per SAR - Exercisable | $ 83.50 | $ 82.70 | |
$40.61 to $57.05 | |||
Share-based payment plans | |||
Number of SARs - Outstanding | EquityInstruments | 1,179,971 | ||
Weighted average remaining contractual life (in years) - Outstanding | 9 years 2 months 12 days | ||
Weighted average exercise price per SAR - Outstanding | $ 65.45 | ||
Number of SARs - Exercisable | EquityInstruments | 94,071 | ||
Weighted average remaining contractual life (in years) - Exercisable | 9 months 18 days | ||
Weighted average exercise price per SAR - Exercisable | $ 51.22 | ||
$40.61 To $69.86 | |||
Share-based payment plans | |||
Number of SARs - Outstanding | EquityInstruments | 1,216,810 | ||
Weighted average remaining contractual life (in years) - Outstanding | 9 years | ||
Weighted average exercise price per SAR - Outstanding | $ 66.64 | ||
Number of SARs - Exercisable | EquityInstruments | 211,750 | ||
Weighted average remaining contractual life (in years) - Exercisable | 8 years 10 months 24 days | ||
Weighted average exercise price per SAR - Exercisable | $ 66.72 | ||
$71.22 to $85.82 | |||
Share-based payment plans | |||
Number of SARs - Outstanding | EquityInstruments | 1,347,504 | 1,202,352 | |
Weighted average remaining contractual life (in years) - Outstanding | 3 years 8 months 12 days | 3 years 1 month 6 days | |
Weighted average exercise price per SAR - Outstanding | $ 83.98 | $ 83.89 | |
Number of SARs - Exercisable | EquityInstruments | 847,093 | 774,845 | |
Weighted average remaining contractual life (in years) - Exercisable | 1 year 10 months 24 days | 2 years 7 months 6 days | |
Weighted average exercise price per SAR - Exercisable | $ 83.72 | $ 83 | |
$87.70 to $95.67 | |||
Share-based payment plans | |||
Number of SARs - Outstanding | EquityInstruments | 773,834 | 779,334 | |
Weighted average remaining contractual life (in years) - Outstanding | 1 year 10 months 24 days | 2 years 10 months 24 days | |
Weighted average exercise price per SAR - Outstanding | $ 88.05 | $ 88.05 | |
Number of SARs - Exercisable | EquityInstruments | 753,167 | 526,656 | |
Weighted average remaining contractual life (in years) - Exercisable | 1 year 10 months 24 days | 2 years 10 months 24 days | |
Weighted average exercise price per SAR - Exercisable | $ 87.96 | $ 87.89 | |
Minimum | $40.61 to $57.05 | |||
Share-based payment plans | |||
Exercise price | 40.61 | ||
Minimum | $40.61 To $69.86 | |||
Share-based payment plans | |||
Exercise price | 65.82 | ||
Minimum | $71.22 to $85.82 | |||
Share-based payment plans | |||
Exercise price | 72.33 | 71.22 | |
Minimum | $87.70 to $95.67 | |||
Share-based payment plans | |||
Exercise price | 87.70 | 87.70 | |
Maximum | $40.61 to $57.05 | |||
Share-based payment plans | |||
Exercise price | 66.72 | ||
Maximum | $40.61 To $69.86 | |||
Share-based payment plans | |||
Exercise price | 69.86 | ||
Maximum | $71.22 to $85.82 | |||
Share-based payment plans | |||
Exercise price | 85.82 | 85.82 | |
Maximum | $87.70 to $95.67 | |||
Share-based payment plans | |||
Exercise price | $ 95.67 | $ 95.67 |
Share-based payment plans - Res
Share-based payment plans - Restricted share units (Details) | 12 Months Ended |
Dec. 31, 2017CAD ($)EquityInstruments | |
Restricted share units | |
Number of units | |
Vesting period | 3 years |
Vesting percentage | 33.00% |
Granted | EquityInstruments | 590,663 |
Outstanding, end of year | EquityInstruments | 590,663 |
Weighted average remaining vesting period (in years) | |
Weighted average remaining contractual life (in years) - Granted | 3 years |
Weighted average remaining contractual life (in years) - Outstanding | 3 years |
Weighted average grant date fair value | |
Granted | $ | $ 79.68 |
Outstanding, end of year | $ | $ 79.68 |
Replacement RSUs | |
Number of units | |
Vesting period | 4 years |
Acquired | EquityInstruments | 592,038 |
Vested or redeemed | EquityInstruments | (100,269) |
Cancelled | EquityInstruments | (21,668) |
Outstanding, end of year | EquityInstruments | 470,101 |
Weighted average remaining vesting period (in years) | |
Weighted average remaining contractual life (in years) - Acquired | 1 year 3 months 18 days |
Weighted average remaining contractual life (in years) - Outstanding | 1 year 3 months 18 days |
Weighted average grant date fair value | |
Acquired | $ | $ 54.57 |
Vested | $ | 54.57 |
Cancelled | $ | 54.57 |
Outstanding, end of year | $ | $ 54.57 |
Share-based payment plans - 118
Share-based payment plans - Share matching program (Details) - Share matching program | 12 Months Ended |
Dec. 31, 2017 | |
Share-based payment plans | |
Shares granted ratio | 0.33 |
Share holding period | 3 years |
Share-based payment plans - Def
Share-based payment plans - Deferred share units (Details) - Deferred share units | 12 Months Ended | |
Dec. 31, 2017CAD ($)EquityInstruments | Dec. 31, 2016CAD ($)EquityInstruments | |
Number of units | ||
Outstanding, beginning of year | EquityInstruments | 62,099 | 79,867 |
Granted | EquityInstruments | 18,042 | 8,756 |
Vested or redeemed | EquityInstruments | (681) | (26,524) |
Outstanding, end of year | EquityInstruments | 79,460 | 62,099 |
Weighted average exercise price | ||
Outstanding, beginning of year | $ | $ 44.93 | $ 40.81 |
Issued | $ | 69.24 | 81.36 |
DSUs redeemed | $ | 81.42 | 44.56 |
Outstanding, end of year | $ | $ 50.13 | $ 44.93 |
Share-based payment plans - Exp
Share-based payment plans - Expenses (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |
Jun. 30, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | |
Share-based payment plans | |||
Executive compensation settlement | $ 11.9 | $ 11.9 | |
Accelerated vesting of share-based payment awards | $ 33.1 | ||
Total share-based compensation expense | 57.9 | 14.7 | |
Cash-settled SARs | |||
Share-based payment plans | |||
Cash settled share based compensation expense | 12.2 | (5.2) | |
Equity-settled SARs | |||
Share-based payment plans | |||
Equity settled share based compensation expense | 7.8 | 6.9 | |
Cash-settled DSUs | |||
Share-based payment plans | |||
Equity settled share based compensation expense | 0.9 | 0.4 | |
Equity-settled DSUs | |||
Share-based payment plans | |||
Equity settled share based compensation expense | 2.9 | ||
Share matching program | |||
Share-based payment plans | |||
Share-based compensation expense excluding settlements, cash and equity-settled transactions | 0.3 | 0.1 | |
Employee Share Purchase Plan | |||
Share-based payment plans | |||
Share-based compensation expense excluding settlements, cash and equity-settled transactions | $ 0.7 | $ 0.6 |
Share-based payment plans - Int
Share-based payment plans - Intrinsic value (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Cash settled | ||
Share-based payment plans | ||
Intrinsic value of cash-settled share based payment award | $ 2.3 | $ 2.3 |
Share-based payment plans - 122
Share-based payment plans - Cash settled SARs - Valuation (Details) - Cash-settled SARs | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Minimum | ||
Share-based payment plans | ||
Risk-free interest rate | 1.70% | 0.70% |
Expected award lives | 1 month | 1 month |
Volatility | 14.00% | 20.00% |
Maximum | ||
Share-based payment plans | ||
Risk-free interest rate | 1.90% | 1.40% |
Dividend yield | 1.80% | 2.20% |
Expected award lives | 78 months | 84 months |
Volatility | 25.00% | 26.00% |
Share-based payment plans - 123
Share-based payment plans - Equity settled SARs and DSUs - Valuation (Details) - Equity-settled SARs, RSUs and DSUs | 12 Months Ended |
Dec. 31, 2017 | |
Minimum | |
Share-based payment plans | |
Risk-free interest rate | 0.60% |
Dividend yield | 1.50% |
Expected award lives | 5 months |
Volatility | 17.00% |
Maximum | |
Share-based payment plans | |
Risk-free interest rate | 1.90% |
Dividend yield | 2.20% |
Expected award lives | 84 months |
Volatility | 25.00% |
Financial instruments and fa124
Financial instruments and fair value disclosures - Financial instruments by category (Details) $ in Millions, $ in Millions | Dec. 31, 2017CAD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016CAD ($) | Dec. 31, 2016USD ($) | Jan. 01, 2016USD ($) |
Financial instruments and fair value disclosures | |||||
Financial assets, other | $ 16.3 | $ 64.7 | $ 47.4 | ||
Financial assets, other | 67.8 | 60.9 | 55.1 | ||
Financial liabilities, other | 18.9 | 17.3 | 32 | ||
Financial liabilities, other | 13.8 | 15.4 | $ 21.4 | ||
Financial liabilities at fair value through earnings | |||||
Financial instruments and fair value disclosures | |||||
Financial liabilities, other | 5.4 | 8.8 | |||
Financial liabilities, other | 1.4 | 1.3 | |||
Derivative instruments in a qualifying hedging relationship | |||||
Financial instruments and fair value disclosures | |||||
Financial liabilities, other | 1.4 | 3.1 | |||
Financial liabilities, other | 0.7 | 1.5 | |||
Financial instruments carried at amortized cost | |||||
Financial instruments and fair value disclosures | |||||
Financial liabilities, other | 12.1 | 5.4 | |||
Financial liabilities, other | 11.7 | 12.6 | |||
Financial assets at fair value through earnings | |||||
Financial instruments and fair value disclosures | |||||
Financial assets, other | 7.1 | 6.1 | |||
Financial assets, other | 1.6 | 3.7 | |||
Derivative instruments in a qualifying hedging relationship | |||||
Financial instruments and fair value disclosures | |||||
Financial assets, other | 2.5 | 5.7 | |||
Financial assets, other | 1.3 | 2.2 | |||
Loans and receivables | |||||
Financial instruments and fair value disclosures | |||||
Financial assets, other | 5.9 | 47.1 | |||
Financial assets, other | 37.5 | 30.6 | |||
Available for sale financial assets | |||||
Financial instruments and fair value disclosures | |||||
Financial assets, other | 0.8 | 5.8 | |||
Financial assets, other | 27.4 | 24.4 | |||
Cash and cash equivalents | |||||
Financial instruments and fair value disclosures | |||||
Financial assets, Current | 19.1 | 14.1 | |||
Cash and cash equivalents | Loans and receivables | |||||
Financial instruments and fair value disclosures | |||||
Financial assets, Current | 19.1 | 14.1 | |||
Trade and other receivables | |||||
Financial instruments and fair value disclosures | |||||
Financial assets, Current | 348.2 | 231.1 | |||
Trade and other receivables | Loans and receivables | |||||
Financial instruments and fair value disclosures | |||||
Financial assets, Current | 312 | 208.7 | |||
Trade and other receivables | Other | |||||
Financial instruments and fair value disclosures | |||||
Financial assets, Current | 36.2 | 22.4 | |||
Trade accounts receivables | |||||
Financial instruments and fair value disclosures | |||||
Financial assets, Current | 273.1 | 175.9 | |||
Trade accounts receivables | Loans and receivables | |||||
Financial instruments and fair value disclosures | |||||
Financial assets, Current | 273.1 | 175.9 | |||
Orbital receivables | |||||
Financial instruments and fair value disclosures | |||||
Financial assets, Current | 30 | 27.1 | |||
Financial assets, Non-current | 424.2 | 418.4 | |||
Orbital receivables | Loans and receivables | |||||
Financial instruments and fair value disclosures | |||||
Financial assets, Current | 30 | 27.1 | |||
Financial assets, Non-current | 424.2 | 418.4 | |||
Other receivables | |||||
Financial instruments and fair value disclosures | |||||
Financial assets, Current | 45.1 | 28.1 | |||
Other receivables | Loans and receivables | |||||
Financial instruments and fair value disclosures | |||||
Financial assets, Current | 8.9 | 5.7 | |||
Other receivables | Other | |||||
Financial instruments and fair value disclosures | |||||
Financial assets, Current | 36.2 | 22.4 | |||
Short-term investments | |||||
Financial instruments and fair value disclosures | |||||
Financial assets, other | 0.8 | 5.8 | |||
Short-term investments | Available for sale financial assets | |||||
Financial instruments and fair value disclosures | |||||
Financial assets, other | 0.8 | 5.8 | |||
Notes receivable | |||||
Financial instruments and fair value disclosures | |||||
Financial assets, other | 0.2 | 38.5 | |||
Financial assets, other | 20.2 | 14 | |||
Notes receivable | Loans and receivables | |||||
Financial instruments and fair value disclosures | |||||
Financial assets, other | 0.2 | 38.5 | |||
Financial assets, other | 20.2 | 14 | |||
Derivative financial instruments | |||||
Financial instruments and fair value disclosures | |||||
Financial assets, other | 9.6 | 11.8 | |||
Financial assets, other | 2.9 | 5.9 | |||
Derivative financial instruments | Financial assets at fair value through earnings | |||||
Financial instruments and fair value disclosures | |||||
Financial assets, other | 7.1 | 6.1 | |||
Financial assets, other | 1.6 | 3.7 | |||
Derivative financial instruments | Derivative instruments in a qualifying hedging relationship | |||||
Financial instruments and fair value disclosures | |||||
Financial assets, other | 2.5 | 5.7 | |||
Financial assets, other | 1.3 | 2.2 | |||
Restricted cash | |||||
Financial instruments and fair value disclosures | |||||
Financial assets, other | 5.7 | 8.6 | |||
Financial assets, other | 17.3 | 16.6 | |||
Restricted cash | Loans and receivables | |||||
Financial instruments and fair value disclosures | |||||
Financial assets, other | 5.7 | 8.6 | |||
Financial assets, other | 17.3 | 16.6 | |||
Long-term investments | |||||
Financial instruments and fair value disclosures | |||||
Financial assets, other | 27.4 | 24.4 | |||
Long-term investments | Level 3 | |||||
Financial instruments and fair value disclosures | |||||
Financial assets, other | $ 32.7 | 26.1 | $ 32.7 | 24.4 | |
Long-term investments | Available for sale financial assets | |||||
Financial instruments and fair value disclosures | |||||
Financial assets, other | 27.4 | 24.4 | |||
Bank overdraft | |||||
Financial instruments and fair value disclosures | |||||
Financial liabilities, Current | 17.9 | ||||
Bank overdraft | Financial instruments carried at amortized cost | |||||
Financial instruments and fair value disclosures | |||||
Financial liabilities, Current | 17.9 | ||||
Trade and other payables | |||||
Financial instruments and fair value disclosures | |||||
Financial liabilities, Current | 236.9 | 186 | |||
Trade and other payables | Financial instruments carried at amortized cost | |||||
Financial instruments and fair value disclosures | |||||
Financial liabilities, Current | 236.9 | 186 | |||
Non-trade payables | |||||
Financial instruments and fair value disclosures | |||||
Financial liabilities, other | 12.1 | 5.4 | |||
Financial liabilities, other | 11.7 | 12.6 | |||
Non-trade payables | Financial instruments carried at amortized cost | |||||
Financial instruments and fair value disclosures | |||||
Financial liabilities, other | 12.1 | 5.4 | |||
Financial liabilities, other | 11.7 | 12.6 | |||
Derivative financial instruments | |||||
Financial instruments and fair value disclosures | |||||
Financial liabilities, other | 6.8 | 11.9 | |||
Financial liabilities, other | 2.1 | 2.8 | |||
Derivative financial instruments | Financial liabilities at fair value through earnings | |||||
Financial instruments and fair value disclosures | |||||
Financial liabilities, other | 5.4 | 8.8 | |||
Financial liabilities, other | 1.4 | 1.3 | |||
Derivative financial instruments | Derivative instruments in a qualifying hedging relationship | |||||
Financial instruments and fair value disclosures | |||||
Financial liabilities, other | 1.4 | 3.1 | |||
Financial liabilities, other | 0.7 | 1.5 | |||
Securitization liability | |||||
Financial instruments and fair value disclosures | |||||
Financial liabilities, Current | 15.5 | 14.9 | |||
Financial liabilities, Non-current | 90.8 | ||||
Financial liabilities, other | 106.3 | ||||
Securitization liability | Financial instruments carried at amortized cost | |||||
Financial instruments and fair value disclosures | |||||
Financial liabilities, Current | 15.5 | 14.9 | |||
Financial liabilities, Non-current | 90.8 | ||||
Financial liabilities, other | 106.3 | ||||
Long-term borrowing and finance lease obligations | |||||
Financial instruments and fair value disclosures | |||||
Financial liabilities, Current | 18.1 | 101.9 | |||
Financial liabilities, Non-current | 2,942.9 | 498.8 | |||
Long-term borrowing and finance lease obligations | Financial instruments carried at amortized cost | |||||
Financial instruments and fair value disclosures | |||||
Financial liabilities, Current | 18.1 | 101.9 | |||
Financial liabilities, Non-current | 2,942.9 | 498.8 | |||
Long-term debt | |||||
Financial instruments and fair value disclosures | |||||
Financial liabilities, Current | 11.4 | 99.9 | |||
Financial liabilities, Non-current | 2,930.9 | 496 | |||
Long-term debt | Financial instruments carried at amortized cost | |||||
Financial instruments and fair value disclosures | |||||
Financial liabilities, Current | 11.4 | 99.9 | |||
Financial liabilities, Non-current | 2,930.9 | 496 | |||
Obligations under finance leases | |||||
Financial instruments and fair value disclosures | |||||
Financial liabilities, Current | 6.7 | 2 | |||
Financial liabilities, Non-current | 12 | 2.8 | |||
Obligations under finance leases | Financial instruments carried at amortized cost | |||||
Financial instruments and fair value disclosures | |||||
Financial liabilities, Current | 6.7 | 2 | |||
Financial liabilities, Non-current | $ 12 | $ 2.8 |
Financial instruments and fa125
Financial instruments and fair value disclosures - Fair value of financial instruments (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Financial instruments and fair value disclosures | ||
Financial liabilities carrying amount | $ 3,327.4 | $ 958.7 |
Financial assets pledged as collateral | 3,786 | 1,578.1 |
Orbital receivables | ||
Financial instruments and fair value disclosures | ||
Financial assets at fair value | 507 | 505 |
Financial assets carrying amount | 454.2 | 445.6 |
Long-term debt | Financial instruments carried at amortized cost | ||
Financial instruments and fair value disclosures | ||
Financial liabilities carrying amount | 2,942.2 | 596 |
Long-term debt | Financial instruments carried at amortized cost | Level 2 | ||
Financial instruments and fair value disclosures | ||
Financial liabilities at fair value | 3,176.3 | 598.7 |
Long-term debt | Financial instruments carried at amortized cost | Net investment hedge | ||
Financial instruments and fair value disclosures | ||
Financial liabilities carrying amount | 271 | |
Financial assets carrying amount | 50 | |
Long-term debt | Financial instruments carried at amortized cost | Net investment hedge | Level 2 | ||
Financial instruments and fair value disclosures | ||
Financial liabilities at fair value | $ 297.8 | $ 50.2 |
Financial instruments and fa126
Financial instruments and fair value disclosures - Analysis of financial instruments (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of detailed information about financial instruments [line items] | ||
Transfer from level 1 to level 2 (assets) | $ 0 | |
Transfer from level 2 to level 1 (assets) | 0 | |
Transfer from level 1 to level 2 (liabilities) | 0 | |
Transfer from level 2 to level 1 (liabilities) | 0 | |
Derivative financial instruments | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial liabilities at fair value | 8.9 | $ 14.7 |
Derivative financial instruments | Level 2 | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial liabilities at fair value | 8.9 | 14.7 |
Short-term and Derivative financial instruments | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial assets at fair value | 13.3 | 23.7 |
Short-term and Derivative financial instruments | Level 1 | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial assets at fair value | 0.8 | 5.8 |
Short-term and Derivative financial instruments | Level 2 | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial assets at fair value | 12.5 | 17.9 |
Short-term investments | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial assets at fair value | 0.8 | 5.8 |
Short-term investments | Level 1 | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial assets at fair value | 0.8 | 5.8 |
Derivative financial instruments | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial assets at fair value | 12.5 | 17.9 |
Derivative financial instruments | Level 2 | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial assets at fair value | $ 12.5 | $ 17.9 |
Financial instruments and fa127
Financial instruments and fair value disclosures - Trade receivables and allowance for doubtful accounts (Details) - Trade accounts receivables - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Disclosure of financial assets [line items] | ||
Trade receivables, net of allowance for doubtful accounts | $ 273.1 | $ 175.9 |
Cost | ||
Disclosure of financial assets [line items] | ||
Trade receivables, net of allowance for doubtful accounts | 282.8 | 180.9 |
Less: allowance for doubtful accounts | ||
Disclosure of financial assets [line items] | ||
Trade receivables, net of allowance for doubtful accounts | $ (9.7) | $ (5) |
Financial instruments and fa128
Financial instruments and fair value disclosures - Aging of trade receivables, Allowance for doubtful accounts (Details) - Trade accounts receivables - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of financial assets [line items] | ||
Trade receivables, net of allowance for doubtful accounts | $ 273.1 | $ 175.9 |
Allowance for doubtful accounts | ||
Balance at the beginning | 5 | 8.9 |
Bad debt expense | 4.7 | |
Allowance reversed | (3.7) | |
Foreign exchange | (0.2) | |
Balance at the ending | 9.7 | 5 |
2017 - Current | ||
Disclosure of financial assets [line items] | ||
Trade receivables, net of allowance for doubtful accounts | 208.3 | 130.1 |
Past due 1 - 30 days | ||
Disclosure of financial assets [line items] | ||
Trade receivables, net of allowance for doubtful accounts | 52.5 | 15 |
Past due 31 - 90 days | ||
Disclosure of financial assets [line items] | ||
Trade receivables, net of allowance for doubtful accounts | 6.8 | 5.7 |
Past due 90+ days | ||
Disclosure of financial assets [line items] | ||
Trade receivables, net of allowance for doubtful accounts | $ 5.5 | $ 25.1 |
Financial instruments and fa129
Financial instruments and fair value disclosures - trade receivables, notes receivable and non-securitized orbital receivables (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Financial instruments and fair value disclosures | ||
Partial support of selected satellite financings provided by EDC | $ 50.3 | $ 29.7 |
Financial instruments and fa130
Financial instruments and fair value disclosures - Maturities of contractual cash flows (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Disclosure of detailed information about financial instruments [line items] | ||
Non-derivative financial liabilities, carrying amount | $ 3,318.5 | $ 944 |
Derivative financial liabilities, carrying amount | 8.9 | 14.7 |
Financial liabilities | 3,327.4 | 958.7 |
Non-derivative financial liabilities, Contractual cash flows | 4,179.8 | 1,073.7 |
Derivative financial liabilities, undiscounted cash flows | 9 | 14.8 |
Non derivative and derivative financial liabilities, Contractual cash flows | 4,188.8 | 1,088.5 |
Less than one year/2018 | ||
Disclosure of detailed information about financial instruments [line items] | ||
Non-derivative financial liabilities, Contractual cash flows | 433 | 354.3 |
Derivative financial liabilities, undiscounted cash flows | 6.8 | 11.9 |
Non derivative and derivative financial liabilities, Contractual cash flows | 439.8 | 366.2 |
1-2 Years/2019 | ||
Disclosure of detailed information about financial instruments [line items] | ||
Non-derivative financial liabilities, Contractual cash flows | 183.8 | 46.3 |
Derivative financial liabilities, undiscounted cash flows | 1.9 | 1.9 |
Non derivative and derivative financial liabilities, Contractual cash flows | 185.7 | 48.2 |
Maturing in 2 to 5 years | ||
Disclosure of detailed information about financial instruments [line items] | ||
Non-derivative financial liabilities, Contractual cash flows | 1,475.6 | 472 |
Derivative financial liabilities, undiscounted cash flows | 0.3 | 1 |
Non derivative and derivative financial liabilities, Contractual cash flows | 1,475.9 | 473 |
More than five years | ||
Disclosure of detailed information about financial instruments [line items] | ||
Non-derivative financial liabilities, Contractual cash flows | 2,087.4 | 201.1 |
Non derivative and derivative financial liabilities, Contractual cash flows | 2,087.4 | 201.1 |
Bank overdraft | ||
Disclosure of detailed information about financial instruments [line items] | ||
Non-derivative financial liabilities, carrying amount | 17.9 | |
Non-derivative financial liabilities, Contractual cash flows | 17.9 | |
Bank overdraft | Less than one year/2018 | ||
Disclosure of detailed information about financial instruments [line items] | ||
Non-derivative financial liabilities, Contractual cash flows | 17.9 | |
Trade and other payables | ||
Disclosure of detailed information about financial instruments [line items] | ||
Non-derivative financial liabilities, carrying amount | 236.8 | 186 |
Non-derivative financial liabilities, Contractual cash flows | 236.8 | 186 |
Trade and other payables | Less than one year/2018 | ||
Disclosure of detailed information about financial instruments [line items] | ||
Non-derivative financial liabilities, Contractual cash flows | 236.8 | 186 |
Non-trade payables | ||
Disclosure of detailed information about financial instruments [line items] | ||
Non-derivative financial liabilities, carrying amount | 14.4 | 18.1 |
Non-derivative financial liabilities, Contractual cash flows | 14.6 | 18.7 |
Non-trade payables | Less than one year/2018 | ||
Disclosure of detailed information about financial instruments [line items] | ||
Non-derivative financial liabilities, Contractual cash flows | 2.6 | 6.2 |
Non-trade payables | 1-2 Years/2019 | ||
Disclosure of detailed information about financial instruments [line items] | ||
Non-derivative financial liabilities, Contractual cash flows | 1.3 | 2 |
Non-trade payables | Maturing in 2 to 5 years | ||
Disclosure of detailed information about financial instruments [line items] | ||
Non-derivative financial liabilities, Contractual cash flows | 3.9 | 6.2 |
Non-trade payables | More than five years | ||
Disclosure of detailed information about financial instruments [line items] | ||
Non-derivative financial liabilities, Contractual cash flows | 6.8 | 4.3 |
Securitization liability | ||
Disclosure of detailed information about financial instruments [line items] | ||
Non-derivative financial liabilities, carrying amount | 106.3 | 121.2 |
Non-derivative financial liabilities, Contractual cash flows | 108.8 | 151.9 |
Securitization liability | Less than one year/2018 | ||
Disclosure of detailed information about financial instruments [line items] | ||
Non-derivative financial liabilities, Contractual cash flows | 16.3 | 22.6 |
Securitization liability | 1-2 Years/2019 | ||
Disclosure of detailed information about financial instruments [line items] | ||
Non-derivative financial liabilities, Contractual cash flows | 15.6 | 22.3 |
Securitization liability | Maturing in 2 to 5 years | ||
Disclosure of detailed information about financial instruments [line items] | ||
Non-derivative financial liabilities, Contractual cash flows | 57.3 | 63.9 |
Securitization liability | More than five years | ||
Disclosure of detailed information about financial instruments [line items] | ||
Non-derivative financial liabilities, Contractual cash flows | 19.6 | 43.1 |
Long-term borrowing and finance lease obligations | ||
Disclosure of detailed information about financial instruments [line items] | ||
Non-derivative financial liabilities, carrying amount | 2,961 | 600.8 |
Non-derivative financial liabilities, Contractual cash flows | 3,819.6 | 699.3 |
Long-term borrowing and finance lease obligations | Less than one year/2018 | ||
Disclosure of detailed information about financial instruments [line items] | ||
Non-derivative financial liabilities, Contractual cash flows | 177.3 | 121.6 |
Long-term borrowing and finance lease obligations | 1-2 Years/2019 | ||
Disclosure of detailed information about financial instruments [line items] | ||
Non-derivative financial liabilities, Contractual cash flows | 166.9 | 22 |
Long-term borrowing and finance lease obligations | Maturing in 2 to 5 years | ||
Disclosure of detailed information about financial instruments [line items] | ||
Non-derivative financial liabilities, Contractual cash flows | 1,414.4 | 401.9 |
Long-term borrowing and finance lease obligations | More than five years | ||
Disclosure of detailed information about financial instruments [line items] | ||
Non-derivative financial liabilities, Contractual cash flows | 2,061 | 153.8 |
Long-term debt | ||
Disclosure of detailed information about financial instruments [line items] | ||
Non-derivative financial liabilities, carrying amount | 2,942.2 | 596 |
Non-derivative financial liabilities, Contractual cash flows | 3,799.1 | 694.2 |
Long-term debt | Less than one year/2018 | ||
Disclosure of detailed information about financial instruments [line items] | ||
Non-derivative financial liabilities, Contractual cash flows | 169.9 | 119.2 |
Long-term debt | 1-2 Years/2019 | ||
Disclosure of detailed information about financial instruments [line items] | ||
Non-derivative financial liabilities, Contractual cash flows | 160.5 | 20.3 |
Long-term debt | Maturing in 2 to 5 years | ||
Disclosure of detailed information about financial instruments [line items] | ||
Non-derivative financial liabilities, Contractual cash flows | 1,407.7 | 400.9 |
Long-term debt | More than five years | ||
Disclosure of detailed information about financial instruments [line items] | ||
Non-derivative financial liabilities, Contractual cash flows | 2,061 | 153.8 |
Obligations under finance leases | ||
Disclosure of detailed information about financial instruments [line items] | ||
Non-derivative financial liabilities, carrying amount | 18.8 | 4.8 |
Non-derivative financial liabilities, Contractual cash flows | 20.5 | 5.1 |
Obligations under finance leases | Less than one year/2018 | ||
Disclosure of detailed information about financial instruments [line items] | ||
Non-derivative financial liabilities, Contractual cash flows | 7.4 | 2.4 |
Obligations under finance leases | 1-2 Years/2019 | ||
Disclosure of detailed information about financial instruments [line items] | ||
Non-derivative financial liabilities, Contractual cash flows | 6.4 | 1.7 |
Obligations under finance leases | Maturing in 2 to 5 years | ||
Disclosure of detailed information about financial instruments [line items] | ||
Non-derivative financial liabilities, Contractual cash flows | 6.7 | 1 |
Foreign exchange forward contracts | ||
Disclosure of detailed information about financial instruments [line items] | ||
Derivative financial liabilities, carrying amount | 8 | 12.8 |
Derivative financial liabilities, undiscounted cash flows | 8.1 | 12.9 |
Foreign exchange forward contracts | Less than one year/2018 | ||
Disclosure of detailed information about financial instruments [line items] | ||
Derivative financial liabilities, undiscounted cash flows | 6.4 | 10.4 |
Foreign exchange forward contracts | 1-2 Years/2019 | ||
Disclosure of detailed information about financial instruments [line items] | ||
Derivative financial liabilities, undiscounted cash flows | 1.5 | 1.6 |
Foreign exchange forward contracts | Maturing in 2 to 5 years | ||
Disclosure of detailed information about financial instruments [line items] | ||
Derivative financial liabilities, undiscounted cash flows | 0.2 | 0.9 |
Other derivative instruments | ||
Disclosure of detailed information about financial instruments [line items] | ||
Derivative financial liabilities, carrying amount | 0.9 | 1.9 |
Derivative financial liabilities, undiscounted cash flows | 0.9 | 1.9 |
Other derivative instruments | Less than one year/2018 | ||
Disclosure of detailed information about financial instruments [line items] | ||
Derivative financial liabilities, undiscounted cash flows | 0.4 | 1.5 |
Other derivative instruments | 1-2 Years/2019 | ||
Disclosure of detailed information about financial instruments [line items] | ||
Derivative financial liabilities, undiscounted cash flows | 0.4 | 0.3 |
Other derivative instruments | Maturing in 2 to 5 years | ||
Disclosure of detailed information about financial instruments [line items] | ||
Derivative financial liabilities, undiscounted cash flows | $ 0.1 | $ 0.1 |
Financial instruments and fa131
Financial instruments and fair value disclosures - Interest rate risk (Details) - Interest rate risk - Floating rate $ in Millions | 12 Months Ended |
Dec. 31, 2017USD ($) | |
Financial instruments and fair value disclosures | |
Percentage of reasonably possible increase in risk assumption | 0.50% |
Effect on net earnings | $ (4.3) |
Percentage of reasonably possible decrease in risk assumption | 0.50% |
Effect on net earnings | $ 4.3 |
Financial instruments and fa132
Financial instruments and fair value disclosures - Summary of foreign exchange forward contracts outstanding (Details) € in Millions, ¥ in Millions, £ in Millions, $ in Millions | 12 Months Ended | |||||||
Dec. 31, 2017JPY (¥)¥ / $€ / $£ / $€ / $$ / $ | Dec. 31, 2016JPY (¥)$ / $ | Dec. 31, 2017GBP (£) | Dec. 31, 2017EUR (€) | Dec. 31, 2017USD ($) | Dec. 31, 2016GBP (£) | Dec. 31, 2016EUR (€) | Dec. 31, 2016USD ($) | |
Disclosure of detailed information about financial instruments [line items] | ||||||||
Financial liabilities carrying amount | $ (3,327.4) | $ (958.7) | ||||||
Canadian dollar foreign exchange forward purchase contract | ||||||||
Disclosure of detailed information about financial instruments [line items] | ||||||||
Notional amount | 190.8 | 193 | ||||||
Canadian dollar foreign exchange forward sales contract | ||||||||
Disclosure of detailed information about financial instruments [line items] | ||||||||
Notional amount | 354.4 | 301.2 | ||||||
United States foreign exchange forward purchase contract | ||||||||
Disclosure of detailed information about financial instruments [line items] | ||||||||
Notional amount | 57.9 | 30.7 | ||||||
United States foreign exchange forward sales contract | ||||||||
Disclosure of detailed information about financial instruments [line items] | ||||||||
Notional amount | 77 | 170.4 | ||||||
U.S. dollar | Canadian dollar foreign exchange forward purchase contract | ||||||||
Disclosure of detailed information about financial instruments [line items] | ||||||||
Notional amount | 165.3 | 175.2 | ||||||
Average exchange rate | $ / $ | 1.2742 | 1.3100 | ||||||
Financial liabilities carrying amount | (2.7) | |||||||
Financial assets carrying amount | 3.8 | |||||||
U.S. dollar | Canadian dollar foreign exchange forward sales contract | ||||||||
Disclosure of detailed information about financial instruments [line items] | ||||||||
Notional amount | 311.5 | 282.4 | ||||||
Average exchange rate | $ / $ | 1.2790 | 1.2962 | ||||||
Financial liabilities carrying amount | (8.5) | |||||||
Financial assets carrying amount | 6.5 | |||||||
Euro | Canadian dollar foreign exchange forward purchase contract | ||||||||
Disclosure of detailed information about financial instruments [line items] | ||||||||
Notional amount | € | € 15.7 | € 14.8 | ||||||
Average exchange rate | 1.4998 | 1.4163 | ||||||
Financial assets carrying amount | 0.2 | 0.1 | ||||||
Euro | Canadian dollar foreign exchange forward sales contract | ||||||||
Disclosure of detailed information about financial instruments [line items] | ||||||||
Notional amount | € | 26.1 | 23.2 | ||||||
Average exchange rate | 1.4926 | 1.4414 | ||||||
Financial liabilities carrying amount | (0.6) | |||||||
Financial assets carrying amount | 0.1 | |||||||
Euro | United States foreign exchange forward purchase contract | ||||||||
Disclosure of detailed information about financial instruments [line items] | ||||||||
Notional amount | € | 31.9 | 11.7 | ||||||
Average exchange rate | 1.1530 | 1.0767 | ||||||
Financial liabilities carrying amount | (0.2) | |||||||
Financial assets carrying amount | 2.1 | |||||||
Euro | United States foreign exchange forward sales contract | ||||||||
Disclosure of detailed information about financial instruments [line items] | ||||||||
Notional amount | € | € 57.6 | € 126.9 | ||||||
Average exchange rate | 1.1584 | 1.1270 | ||||||
Financial liabilities carrying amount | (3.3) | |||||||
Financial assets carrying amount | 6.9 | |||||||
British pound | Canadian dollar foreign exchange forward purchase contract | ||||||||
Disclosure of detailed information about financial instruments [line items] | ||||||||
Notional amount | £ | £ 2.4 | £ 3.1 | ||||||
Average exchange rate | 1.6919 | 1.8305 | ||||||
Financial liabilities carrying amount | (0.4) | |||||||
British pound | Canadian dollar foreign exchange forward sales contract | ||||||||
Disclosure of detailed information about financial instruments [line items] | ||||||||
Notional amount | £ | £ 1.9 | £ 2.4 | ||||||
Average exchange rate | 1.7206 | 1.7976 | ||||||
Financial assets carrying amount | 0.2 | |||||||
Japanese yen | United States foreign exchange forward purchase contract | ||||||||
Disclosure of detailed information about financial instruments [line items] | ||||||||
Notional amount | ¥ | ¥ 2,231.2 | ¥ 1,726.3 | ||||||
Average exchange rate | 0.0092 | 0.0096 | ||||||
Financial liabilities carrying amount | (0.5) | (1.4) | ||||||
Japanese yen | United States foreign exchange forward sales contract | ||||||||
Disclosure of detailed information about financial instruments [line items] | ||||||||
Notional amount | ¥ | ¥ 1,115.5 | ¥ 3,276.7 | ||||||
Average exchange rate | 0.0092 | 0.0084 | ||||||
Financial liabilities carrying amount | $ (0.9) | |||||||
Financial assets carrying amount | $ 0.2 |
Financial instruments and fa133
Financial instruments and fair value disclosures - Cash flow hedges (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Disclosure of information about terms and conditions of hedging instruments and how they affect future cash flows [line items] | ||
Financial liabilities carrying amount | $ 3,327.4 | $ 958.7 |
Derivative financial liabilities, Contractual cash flows | 9 | 14.8 |
Less than one year/2018 | ||
Disclosure of information about terms and conditions of hedging instruments and how they affect future cash flows [line items] | ||
Derivative financial liabilities, Contractual cash flows | 6.8 | 11.9 |
1-2 Years/2019 | ||
Disclosure of information about terms and conditions of hedging instruments and how they affect future cash flows [line items] | ||
Derivative financial liabilities, Contractual cash flows | 1.9 | 1.9 |
Maturing in 2 to 5 years | ||
Disclosure of information about terms and conditions of hedging instruments and how they affect future cash flows [line items] | ||
Derivative financial liabilities, Contractual cash flows | 0.3 | 1 |
Foreign exchange forward contracts | Cash flow hedges | ||
Disclosure of information about terms and conditions of hedging instruments and how they affect future cash flows [line items] | ||
Financial assets carrying amount | 3.8 | 7.9 |
Financial liabilities carrying amount | 2.1 | 4.6 |
Derivative financial assets, Contractual cash flows | 4.3 | 8.1 |
Derivative financial liabilities, Contractual cash flows | 2.2 | 4.7 |
Foreign exchange forward contracts | Less than one year/2018 | Cash flow hedges | ||
Disclosure of information about terms and conditions of hedging instruments and how they affect future cash flows [line items] | ||
Derivative financial assets, Contractual cash flows | 3 | 5.8 |
Derivative financial liabilities, Contractual cash flows | 1.4 | 3.1 |
Foreign exchange forward contracts | 1-2 Years/2019 | Cash flow hedges | ||
Disclosure of information about terms and conditions of hedging instruments and how they affect future cash flows [line items] | ||
Derivative financial assets, Contractual cash flows | 1 | 1.6 |
Derivative financial liabilities, Contractual cash flows | 0.5 | 0.8 |
Foreign exchange forward contracts | Maturing in 2 to 5 years | Cash flow hedges | ||
Disclosure of information about terms and conditions of hedging instruments and how they affect future cash flows [line items] | ||
Derivative financial assets, Contractual cash flows | 0.3 | 0.7 |
Derivative financial liabilities, Contractual cash flows | $ 0.3 | $ 0.8 |
Financial instruments and fa134
Financial instruments and fair value disclosures - Net investment hedges (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Net investment hedge | ||
Disclosure of detailed information about hedges [line items] | ||
Notional amount | $ 271 | $ 50 |
Net investment hedge | Term Loan B | ||
Disclosure of detailed information about hedges [line items] | ||
Notional amount | 2,000 | |
2017 term notes | Net investment hedge | ||
Disclosure of detailed information about hedges [line items] | ||
Notional amount | 100 | |
United States foreign exchange forward sales contract | ||
Disclosure of detailed information about hedges [line items] | ||
Notional amount | $ 77 | 170.4 |
United States foreign exchange forward sales contract | Net investment hedge | ||
Disclosure of detailed information about hedges [line items] | ||
Notional amount | $ 21 |
Financial instruments and fa135
Financial instruments and fair value disclosures - Foreign exchange sensitivity (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Foreign exchange risk | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Percentage of reasonably possible increase in risk assumption | 10.00% | 10.00% |
Percentage of reasonably possible decrease in risk assumption | 10.00% | 10.00% |
British pound against Canadian dollar | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Currency 1 strengthens 10% against currency 2, Effect on other comprehensive income | $ 0.1 | |
Currency 1 weakens 10% against currency 2, Effect on other comprehensive income | (0.1) | |
U.S. dollar against Canadian dollar | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Currency 1 strengthens 10% against currency 2, Effect on net earnings | (7.6) | $ 0.1 |
Currency 1 strengthens 10% against currency 2, Effect on other comprehensive income | (6.8) | (5.4) |
Currency 1 weakens 10% against currency 2, Effect on net earnings | 7.6 | (0.1) |
Currency 1 weakens 10% against currency 2, Effect on other comprehensive income | 6.8 | 5.4 |
Euro against Canadian dollar | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Currency 1 strengthens 10% against currency 2, Effect on net earnings | (0.4) | (0.3) |
Currency 1 strengthens 10% against currency 2, Effect on other comprehensive income | (0.4) | (0.6) |
Currency 1 weakens 10% against currency 2, Effect on net earnings | 0.4 | 0.3 |
Currency 1 weakens 10% against currency 2, Effect on other comprehensive income | 0.4 | 0.6 |
New Zealand against Canadian dollar | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Currency 1 strengthens 10% against currency 2, Effect on other comprehensive income | (0.1) | |
Currency 1 weakens 10% against currency 2, Effect on other comprehensive income | 0.1 | |
Euro against U.S. dollar | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Currency 1 strengthens 10% against currency 2, Effect on net earnings | 3.4 | 4.9 |
Currency 1 strengthens 10% against currency 2, Effect on other comprehensive income | (1.4) | (9.8) |
Currency 1 weakens 10% against currency 2, Effect on net earnings | (3.4) | (4.9) |
Currency 1 weakens 10% against currency 2, Effect on other comprehensive income | 1.4 | 9.8 |
Japanese yen against U.S. dollar | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Currency 1 strengthens 10% against currency 2, Effect on net earnings | 0.2 | 0.8 |
Currency 1 strengthens 10% against currency 2, Effect on other comprehensive income | (2.5) | |
Currency 1 weakens 10% against currency 2, Effect on net earnings | $ (0.2) | (0.8) |
Currency 1 weakens 10% against currency 2, Effect on other comprehensive income | $ 2.5 |
Financial instruments and fa136
Financial instruments and fair value disclosures - Master netting agreements derivative financial assets: (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Disclosure of offsetting of financial assets [line items] | ||
Gross and net amounts in the consolidated balance sheet, financial assets | $ 17.8 | |
Financial instruments that are not offset, financial assets | 8.1 | |
Amount if presented net, financial assets | 9.7 | |
Foreign exchange forward contracts | ||
Disclosure of offsetting of financial assets [line items] | ||
Gross and net amounts in the consolidated balance sheet, financial assets | $ 9.9 | 12.5 |
Financial instruments that are not offset, financial assets | 6.5 | 8.1 |
Amount if presented net, financial assets | $ 3.4 | 4.4 |
Other derivative instruments | ||
Disclosure of offsetting of financial assets [line items] | ||
Gross and net amounts in the consolidated balance sheet, financial assets | 5.3 | |
Amount if presented net, financial assets | $ 5.3 |
Financial instruments and fa137
Financial instruments and fair value disclosures - Master netting agreements derivative financial liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Disclosure of offsetting of financial liabilities [line items] | ||
Gross and net amounts in the consolidated balance sheet, financial liabilities | $ 14.6 | |
Financial instruments that are not offset, financial liabilities | 8.1 | |
Amount if presented net, financial liabilities | 6.5 | |
Foreign exchange forward contracts | ||
Disclosure of offsetting of financial liabilities [line items] | ||
Gross and net amounts in the consolidated balance sheet, financial liabilities | $ 8 | 12.7 |
Financial instruments that are not offset, financial liabilities | 6.5 | 8.1 |
Amount if presented net, financial liabilities | $ 1.5 | 4.6 |
Other derivative instruments | ||
Disclosure of offsetting of financial liabilities [line items] | ||
Gross and net amounts in the consolidated balance sheet, financial liabilities | 1.9 | |
Amount if presented net, financial liabilities | $ 1.9 |
Capital management (Details)
Capital management (Details) $ in Millions | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Jan. 01, 2016USD ($) |
Capital management | |||
Share capital | $ 1,550.3 | $ 466.9 | $ 455.8 |
Contributed surplus | 50.6 | 31 | 30.7 |
Retained earnings | 261.8 | 208.8 | $ 144.2 |
Total | $ 1,862.7 | $ 706.7 | |
Maximum debt to EBITDA | 5.5 |
Government assistance (Details)
Government assistance (Details) $ in Millions | May 05, 2016CAD ($) | May 05, 2016USD ($) | Dec. 31, 2017CAD ($)item | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2017USD ($)item | May 05, 2016USD ($) |
Government assistance | |||||||
Investment tax credits | $ 31,600,000 | $ 22,500,000 | |||||
Investment tax credit, related to prior years | 19,800,000 | 11,600,000 | |||||
Reduction of the cost of intangible assets | 1,000,000 | 1,900,000 | |||||
Investment tax credits available for future offset | 40,600,000 | $ 66,400,000 | |||||
Repayment of loans | 1,000,000 | 900,000 | |||||
Discounted Interest Free Loan payable | 600,700,000 | 2,961,000,000 | |||||
Grant | Investissement Quebec | |||||||
Government assistance | |||||||
Government grants receivable | $ 9 | 7,200,000 | |||||
Government grants received | 9 | 7,200,000 | |||||
Interest Free Loan | Investissement Quebec | |||||||
Government assistance | |||||||
Government grants receivable | 9 | $ 7,200,000 | |||||
Government grants received | $ 9 | $ 7,200,000 | |||||
Number of installments | item | 84 | 84 | |||||
Debt term | 3 years | 3 years | |||||
Repayment of loans | $ 1,000,000 | 900,000 | |||||
Discounted Interest Free Loan payable | 5,200,000 | $ 4,800,000 | |||||
Technology Demonstration Program | |||||||
Government assistance | |||||||
Amount awarded under contribution agreement | $ 54 | $ 43,000,000 | |||||
Percentage of eligible costs | 50.00% | 50.00% | |||||
Company and Partners eligible cost | $ 108 | $ 86,100,000 | |||||
Eligible maximum contribution of the company | 31.5 | $ 25,100,000 | |||||
Company's eligible cost | $ 63 | $ 50,200,000 | |||||
Recovery against direct costs, selling, general and administration | 12,500,000 | 8,900,000 | |||||
Proceeds from claims | $ 10,100,000 | 4,500,000 | |||||
Government of Canada | |||||||
Government assistance | |||||||
Future revenues (as a percent) | 5.00% | 5.00% | |||||
Proceeds from the fund | $ 0 | $ 0 |
Income taxes - Income tax expen
Income taxes - Income tax expense (Details) - USD ($) $ in Millions | Jan. 01, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Income Taxes | |||
Applicable tax rate | 26.00% | 26.00% | |
Current tax expense: | |||
Current period | $ 16.3 | $ 20.3 | |
Adjustment for prior periods | 2.3 | 6.7 | |
Total current tax | 18.6 | 27 | |
Deferred tax expense: | |||
Origination and reversal of temporary differences | (38) | (4.4) | |
Change in unrecognized deductible temporary differences | 5.2 | 1.4 | |
Change in tax rate | 0.3 | (0.1) | |
Recognition of previously unrecognized tax losses | (122.4) | ||
Total deferred tax expense | (154.9) | (3.1) | |
Income tax expense | $ (136.3) | $ 23.9 | |
U.S. | |||
Income Taxes | |||
Applicable tax rate | 35.00% | ||
Forecast | U.S. | |||
Income Taxes | |||
Applicable tax rate | 21.00% |
Income taxes - Reconciliation o
Income taxes - Reconciliation of income taxes (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Income taxes | ||
Statutory Federal and Provincial tax rate in Canada (as a percent) | 26.00% | 26.00% |
Income tax expense at the statutory tax rate | $ (9.3) | $ 33.7 |
Foreign earnings subject to different rates | (13) | (6.1) |
Change in statutory rates | 3.9 | |
Change in unrecognized deferred tax assets | (122) | (0.6) |
Foreign exchange differences | (3.4) | (1.1) |
Share-based compensation | 2.3 | 1.8 |
Other permanent differences | 5.2 | (3.8) |
Income tax expense | $ (136.3) | $ 23.9 |
Income taxes - Unrecognized def
Income taxes - Unrecognized deferred tax assets (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Unrecognized deferred tax assets | ||
Unrecognized deferred tax assets | $ 268 | $ 392.4 |
Tax loss carry forwards | ||
Unrecognized deferred tax assets | ||
Unrecognized deferred tax assets | 177.6 | 254.1 |
Other items | ||
Unrecognized deferred tax assets | ||
Unrecognized deferred tax assets | $ 90.4 | $ 138.3 |
Income taxes - Recognized defer
Income taxes - Recognized deferred tax assets and liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 | Jan. 01, 2016 | Dec. 31, 2015 |
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||||
Assets | $ 607 | $ 26.6 | ||
Deferred tax liabilities | (602.3) | (22.9) | ||
Net | 4.7 | 3.7 | $ (0.1) | |
Set off of tax | (498.7) | (11.6) | ||
Set off of tax | 498.7 | 11.6 | ||
Net tax assets | 108.3 | 15 | $ 9.4 | |
Net tax liabilities | (103.6) | (11.3) | $ (9.5) | |
Construction contract assets and liabilities | ||||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||||
Assets | 87.6 | 4.3 | ||
Deferred tax liabilities | (8.4) | (4) | ||
Net | 79.2 | 0.3 | 1.1 | |
Property, plant and equipment | ||||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||||
Assets | 177.8 | 0.1 | ||
Deferred tax liabilities | (20.6) | (0.4) | ||
Net | 157.2 | (0.3) | 0.2 | |
Intangible assets and goodwill | ||||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||||
Assets | 9.2 | 0.8 | ||
Deferred tax liabilities | (553.8) | (7) | ||
Net | (544.6) | (6.2) | (6.1) | |
Investment tax credits | ||||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||||
Assets | 11.1 | 8.3 | ||
Deferred tax liabilities | (15.3) | (10.6) | ||
Net | (4.2) | (2.3) | (6.4) | |
Derivative financial instruments | ||||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||||
Assets | 5 | 0.2 | ||
Deferred tax liabilities | (1.5) | (0.8) | ||
Net | 3.5 | (0.6) | (1.1) | |
Trade and other payables | ||||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||||
Assets | 26.6 | 2.3 | ||
Net | 26.6 | 2.3 | 3.7 | |
Employee benefits | ||||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||||
Assets | 61.6 | 5.7 | ||
Net | 61.6 | 5.7 | 5.6 | |
Tax loss carry forwards | ||||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||||
Assets | 216.9 | 4.7 | ||
Net | 216.9 | 4.7 | 2.3 | |
Other items | ||||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||||
Assets | 11.2 | 0.2 | ||
Deferred tax liabilities | (2.7) | (0.1) | ||
Net | $ 8.5 | $ 0.1 | $ 0.6 |
Income taxes - Movement in temp
Income taxes - Movement in temporary differences (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Reconciliation of changes in deferred tax liability (asset) [abstract] | ||
Balance | $ 3.7 | $ (0.1) |
Recognized in statement of earnings | 154.9 | 3.1 |
Recognized in other comprehensive income | (4.6) | 0.7 |
Acquired in business combination | (149.6) | |
Foreign currency translation | 0.3 | |
Balance | 4.7 | 3.7 |
Construction contract assets and liabilities | ||
Reconciliation of changes in deferred tax liability (asset) [abstract] | ||
Balance | 0.3 | 1.1 |
Recognized in statement of earnings | (46.3) | (0.9) |
Acquired in business combination | 125.3 | |
Foreign currency translation | (0.1) | 0.1 |
Balance | 79.2 | 0.3 |
Property, plant and equipment | ||
Reconciliation of changes in deferred tax liability (asset) [abstract] | ||
Balance | (0.3) | 0.2 |
Recognized in statement of earnings | 74.9 | (0.5) |
Acquired in business combination | 82.3 | |
Foreign currency translation | 0.3 | |
Balance | 157.2 | (0.3) |
Intangible assets and goodwill | ||
Reconciliation of changes in deferred tax liability (asset) [abstract] | ||
Balance | (6.2) | (6.1) |
Recognized in statement of earnings | (12.9) | 0.1 |
Acquired in business combination | (525) | |
Foreign currency translation | (0.5) | (0.2) |
Balance | (544.6) | (6.2) |
Investment tax credits | ||
Reconciliation of changes in deferred tax liability (asset) [abstract] | ||
Balance | (2.3) | (6.4) |
Recognized in statement of earnings | 43.8 | 4.4 |
Acquired in business combination | (45.7) | |
Foreign currency translation | (0.3) | |
Balance | (4.2) | (2.3) |
Derivative financial instruments | ||
Reconciliation of changes in deferred tax liability (asset) [abstract] | ||
Balance | (0.6) | (1.1) |
Recognized in statement of earnings | 0.5 | 0.4 |
Recognized in other comprehensive income | 0.9 | 0.1 |
Acquired in business combination | 2.7 | |
Balance | 3.5 | (0.6) |
Trade and other payables | ||
Reconciliation of changes in deferred tax liability (asset) [abstract] | ||
Balance | 2.3 | 3.7 |
Recognized in statement of earnings | 17.6 | (1.5) |
Acquired in business combination | 6.5 | |
Foreign currency translation | 0.2 | 0.1 |
Balance | 26.6 | 2.3 |
Employee benefits | ||
Reconciliation of changes in deferred tax liability (asset) [abstract] | ||
Balance | 5.7 | 5.6 |
Recognized in statement of earnings | 43.9 | (0.7) |
Recognized in other comprehensive income | (5.6) | 0.6 |
Acquired in business combination | 17.3 | |
Foreign currency translation | 0.3 | 0.2 |
Balance | 61.6 | 5.7 |
Tax loss carry forwards | ||
Reconciliation of changes in deferred tax liability (asset) [abstract] | ||
Balance | 4.7 | 2.3 |
Recognized in statement of earnings | 76.1 | 2.4 |
Acquired in business combination | 135.6 | |
Foreign currency translation | 0.5 | |
Balance | 216.9 | 4.7 |
Other items | ||
Reconciliation of changes in deferred tax liability (asset) [abstract] | ||
Balance | 0.1 | 0.6 |
Recognized in statement of earnings | (42.7) | (0.6) |
Recognized in other comprehensive income | 0.1 | |
Acquired in business combination | 51.4 | |
Foreign currency translation | (0.4) | 0.1 |
Balance | $ 8.5 | $ 0.1 |
Income taxes - Non-capital loss
Income taxes - Non-capital losses carried forward (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Taxable temporary differences relating to investments in subsidiaries that were not recognized | $ 11.6 | $ 63.9 |
Non-capital losses carried forward | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Non-capital losses carried | 795.6 | |
Net capital losses carried forward | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Non-capital losses carried | 110 | |
Less than one year/2018 | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Non-capital losses carried | 0.1 | |
2,026 | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Non-capital losses carried | 1.1 | |
2,027 | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Non-capital losses carried | 0.7 | |
2,028 | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Non-capital losses carried | 9.7 | |
2,029 | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Non-capital losses carried | 1.1 | |
2,030 | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Non-capital losses carried | 41.6 | |
2,031 | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Non-capital losses carried | 12.3 | |
2,032 | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Non-capital losses carried | 171.9 | |
2,033 | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Non-capital losses carried | 21 | |
2,034 | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Non-capital losses carried | 15.6 | |
2,035 | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Non-capital losses carried | 56.5 | |
2,036 | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Non-capital losses carried | 60.2 | |
2,037 | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Non-capital losses carried | 401.1 | |
No Expiry | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Non-capital losses carried | $ 2.7 |
Contingencies and commitments -
Contingencies and commitments - Operating leases (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Contingencies and commitments | ||
Property, plant and equipment | $ 818.7 | |
Operating leases | 254.8 | |
Total | 1,073.5 | |
Total lease expenses | 37.2 | $ 32.7 |
Less than one year/2018 | ||
Contingencies and commitments | ||
Property, plant and equipment | 370.2 | |
Operating leases | 38 | |
Total | 408.2 | |
1-2 Years/2019 | ||
Contingencies and commitments | ||
Property, plant and equipment | 286.6 | |
Operating leases | 35.1 | |
Total | 321.7 | |
2-3 Years/2020 | ||
Contingencies and commitments | ||
Property, plant and equipment | 117.7 | |
Operating leases | 29 | |
Total | 146.7 | |
3-4 Years/2021 | ||
Contingencies and commitments | ||
Property, plant and equipment | 16.6 | |
Operating leases | 26.9 | |
Total | 43.5 | |
4-5 Years/2022 | ||
Contingencies and commitments | ||
Property, plant and equipment | 13.8 | |
Operating leases | 23.3 | |
Total | 37.1 | |
More than five years | ||
Contingencies and commitments | ||
Property, plant and equipment | 13.8 | |
Operating leases | 102.5 | |
Total | $ 116.3 |
Contingencies and commitment147
Contingencies and commitments (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Contingencies and commitments | ||
Letters of credit | $ 108 | $ 83.7 |
Export Development Canada | ||
Contingencies and commitments | ||
Letters of credit | $ 77.9 | $ 69.5 |
Related party transactions (Det
Related party transactions (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |
Jun. 30, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | |
Related party transactions | |||
Salaries and other benefits | $ 9.4 | $ 8.2 | |
Post-employment benefits | 1.5 | 0.5 | |
Share-based payments | 5.2 | 16.8 | |
Total compensation | 16.1 | $ 25.5 | |
Executive compensation settlement to a related party | $ 14.2 | $ 14.2 | |
Minimum | |||
Related party transactions | |||
Lump-sum payment term | 2 years 6 months | ||
Maximum | |||
Related party transactions | |||
Lump-sum payment term | 3 years |
Supplemental cash flow infor149
Supplemental cash flow information - Changes in operating assets and liabilities - (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Supplemental cash flow information | ||
Trade and other receivables | $ 64.4 | $ 45.7 |
Construction contract assets | (40.1) | 58.7 |
Financial assets, other | 41.2 | (45) |
Inventories | 1.1 | 1.4 |
Current tax assets | (37.4) | (25.3) |
Non-financial assets | 31.5 | (4) |
Orbital receivables | (5.8) | (8.7) |
Trade and other payables | (17.6) | 22.4 |
Financial liabilities, other | 4.7 | (11.2) |
Provisions | 11.8 | (0.2) |
Construction contract liabilities | (39.7) | (147.9) |
Employee benefits | (24.1) | 3 |
Non-financial liabilities | (32.5) | (8.1) |
Total changes in operating assets and liabilities | $ (42.5) | $ (119.2) |
Supplemental cash flow infor150
Supplemental cash flow information - Cash and cash equivalents - (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 | Jan. 01, 2016 | Dec. 31, 2015 |
Supplemental cash flow information | ||||
Cash and cash equivalents | $ 19.1 | $ 14.1 | $ 30 | |
Bank overdrafts | (17.9) | |||
Total cash and cash equivalents | $ 19.1 | $ (3.8) | $ 30 |
Supplemental cash flow infor151
Supplemental cash flow information - Acquisition of DigitalGlobe (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Oct. 05, 2017 | |
Supplemental cash flow information | ||
Total | $ 2,273 | |
DigitalGlobe | ||
Supplemental cash flow information | ||
Acquisition | (1,131) | $ (1,131) |
Repayment of long-term debt | (1,266) | |
Settlement of transaction costs | (46.6) | |
Cash acquired | (170.6) | $ (170.6) |
Total | $ 2,273 |
Supplemental cash flow infor152
Supplemental cash flow information - Reconciliation of liabilities arising from financing activities (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2017USD ($) | |
Supplemental cash flow information | |
Balance as at beginning of period | $ 727.1 |
Repayment of revolving loan facility and other long-term debt | (421.4) |
Payments on finance leases | (4.5) |
Interest paid on long-term debt | (40.5) |
Settlement of securitization liability, including interest | (21.8) |
Repayment of interest free government assistance | (1) |
Total changes from financing cash flows | (845.5) |
Issuance of long-term debt related to acquisition, net of financing fees (note 9) | 3,096.7 |
The effect of changes in foreign exchange rates | 5.4 |
Amortization of financing fees | 2.2 |
New finance leases | 7.3 |
Finance leases acquired | 10.6 |
Loss from early extinguishment of debt | 20.4 |
Finance expense | 47.9 |
Total liability related other changes | 88.4 |
Balance as at end of period | 3,072.1 |
Long-term debt | |
Supplemental cash flow information | |
Balance as at beginning of period | 596 |
Repayment of revolving loan facility and other long-term debt | (421.4) |
Interest paid on long-term debt | (40.5) |
Total changes from financing cash flows | (818.2) |
Issuance of long-term debt related to acquisition, net of financing fees (note 9) | 3,096.7 |
The effect of changes in foreign exchange rates | 4.7 |
Amortization of financing fees | 2.2 |
Loss from early extinguishment of debt | 20.4 |
Finance expense | 40.4 |
Total liability related other changes | 63 |
Balance as at end of period | 2,942.2 |
Securitization liability | |
Supplemental cash flow information | |
Balance as at beginning of period | 121.2 |
Settlement of securitization liability, including interest | (21.8) |
Total changes from financing cash flows | (21.8) |
Finance expense | 6.9 |
Total liability related other changes | 6.9 |
Balance as at end of period | 106.3 |
Obligations under finance leases | |
Supplemental cash flow information | |
Balance as at beginning of period | 4.7 |
Payments on finance leases | (4.5) |
Total changes from financing cash flows | (4.5) |
The effect of changes in foreign exchange rates | 0.4 |
New finance leases | 7.3 |
Finance leases acquired | 10.6 |
Finance expense | 0.3 |
Total liability related other changes | 18.2 |
Balance as at end of period | 18.8 |
Financial liabilities | |
Supplemental cash flow information | |
Balance as at beginning of period | 5.2 |
Repayment of interest free government assistance | (1) |
Total changes from financing cash flows | (1) |
The effect of changes in foreign exchange rates | 0.3 |
Finance expense | 0.3 |
Total liability related other changes | 0.3 |
Balance as at end of period | 4.8 |
2017 Term notes | |
Supplemental cash flow information | |
Repayment of term notes | (100) |
2017 Term notes | Long-term debt | |
Supplemental cash flow information | |
Repayment of term notes | (100) |
2024 Term notes | |
Supplemental cash flow information | |
Repayment of term notes | (256.3) |
2024 Term notes | Long-term debt | |
Supplemental cash flow information | |
Repayment of term notes | $ (256.3) |
Subsequent event - (Details)
Subsequent event - (Details) | Feb. 22, 2018$ / shares |
Subsequent event | |
Dividend declared (per common share) | $ 0.37 |