Document and Entity Information
Document and Entity Information | 12 Months Ended |
Dec. 31, 2023 shares | |
Cover [Abstract] | |
Document Type | 20-F |
Document Registration Statement | false |
Document Annual Report | true |
Document Period End Date | Dec. 31, 2023 |
Document Transition Report | false |
Document Shell Company Report | false |
Entity File Number | 033-51000 |
Entity Registrant Name | VIDEOTRON LTEE |
Entity Incorporation, State or Country Code | A8 |
Entity Address, Address Line One | 612 St. Jacques Street |
Entity Address, City or Town | Montréal |
Entity Address, State or Province | QC |
Entity Address, Country | CA |
Entity Address, Postal Zip Code | H3C 4M8 |
Entity Common Stock, Shares Outstanding | 10,739,284.822 |
Entity Well-known Seasoned Issuer | No |
Entity Voluntary Filers | Yes |
Entity Current Reporting Status | No |
Entity Interactive Data Current | Yes |
Entity Filer Category | Non-accelerated Filer |
Entity Emerging Growth Company | false |
ICFR Auditor Attestation Flag | false |
Document Financial Statement Error Correction [Flag] | false |
Document Accounting Standard | International Financial Reporting Standards |
Entity Shell Company | false |
Entity Central Index Key | 0000890746 |
Current Fiscal Year End Date | --12-31 |
Document Fiscal Year Focus | 2023 |
Document Fiscal Period Focus | FY |
Amendment Flag | false |
Auditor Name | Ernst & Young LLP |
Auditor Firm ID | 1263 |
Auditor Location | Montreal, Canada |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - CAD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Revenues | |||
Mobile telephony | $ 1,420.7 | $ 780.3 | $ 712.5 |
Internet | 1,283.8 | 1,238.1 | 1,201.4 |
Television | 802.6 | 799.2 | 836.1 |
Wireline telephony | 278.3 | 292.5 | 318.5 |
Mobile equipment sales | 613.5 | 322.2 | 276.4 |
Wireline equipment sales | 70.1 | 92.2 | 204 |
Other | 185 | 193.7 | 186.1 |
Revenues | 4,654 | 3,718.2 | 3,735 |
Employee costs | 472.3 | 397.7 | 405.9 |
Purchase of goods and services | 1,951.4 | 1,407.6 | 1,453.4 |
Depreciation and amortization | 844 | 699.6 | 717.8 |
Financial expenses | 331 | 244.6 | 232.1 |
(Gain) loss on valuation and translation of financial instruments | (0.3) | 0.8 | 0.4 |
Restructuring, acquisition costs and other | 20.4 | 12.7 | 11.6 |
Loss on debt refinancing | 40.1 | ||
Income before income taxes | 1,035.2 | 955.2 | 873.7 |
Income taxes (recovery): | |||
Current | 213.1 | 263.4 | 235.5 |
Deferred | 24.6 | (65.5) | (55.2) |
Income taxes | 237.7 | 197.9 | 180.3 |
Net income | 797.5 | 757.3 | 693.4 |
Net income attributable to | |||
Shareholder | 797.4 | 757.2 | 693.3 |
Non-controlling interests | $ 0.1 | $ 0.1 | $ 0.1 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - CAD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME | |||
Net income | $ 797.5 | $ 757.3 | $ 693.4 |
Cash flow hedges: | |||
Gain (loss) on valuation of derivative financial instruments | 5.1 | (58.9) | 4.6 |
Deferred income taxes | 0.5 | 6.2 | 1.4 |
Defined benefit plans: | |||
Re-measurement gain | 6.4 | 77.3 | 107.9 |
Deferred income taxes | (1.7) | (20.5) | (28.6) |
Reclassification to income: | |||
Gain related to cash flow hedges | (1) | ||
Deferred income taxes | 0.6 | ||
Other comprehensive income | 10.3 | 4.1 | 84.9 |
Comprehensive income | 807.8 | 761.4 | 778.3 |
Comprehensive income attributable to | |||
Shareholder | 807.7 | 761.3 | 778.2 |
Non-controlling interests | $ 0.1 | $ 0.1 | $ 0.1 |
CONSOLIDATED STATEMENTS OF EQUI
CONSOLIDATED STATEMENTS OF EQUITY - CAD ($) $ in Millions | Capital stock | Deficit | Accumulated other comprehensive loss | Equity attributable to non-controlling interests | Total |
Beginning of year at Dec. 31, 2020 | $ 1,015.6 | $ (721.8) | $ (105.7) | $ 0.4 | $ 188.5 |
Net income | 693.3 | 0.1 | 693.4 | ||
Other comprehensive income | 84.9 | 84.9 | |||
Reduction of paid-up capital | (720) | (720) | |||
Dividends | (585) | (0.1) | (585.1) | ||
End of year at Dec. 31, 2021 | 295.6 | (613.5) | (20.8) | 0.4 | (338.3) |
Net income | 757.2 | 0.1 | 757.3 | ||
Other comprehensive income | 4.1 | 4.1 | |||
Issuance of common shares | 17.3 | 17.3 | |||
Dividends | (671) | (0.2) | (671.2) | ||
End of year at Dec. 31, 2022 | 312.9 | (527.3) | (16.7) | 0.3 | (230.8) |
Net income | 797.4 | 0.1 | 797.5 | ||
Other comprehensive income | 10.3 | 10.3 | |||
Dividends | (421) | (0.1) | (421.1) | ||
End of year at Dec. 31, 2023 | $ 312.9 | $ (150.9) | $ (6.4) | $ 0.3 | $ 155.9 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - CAD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Cash flows related to operating activities | |||
Net income | $ 797.5 | $ 757.3 | $ 693.4 |
Adjustments for: | |||
Depreciation of property, plant and equipment | 551.2 | 516 | 542.4 |
Amortization of intangible assets | 194 | 142.4 | 136.7 |
Depreciation of right-of-use assets | 98.8 | 41.2 | 38.7 |
(Gain) loss on valuation and translation of financial instruments | (0.3) | 0.8 | 0.4 |
Gain on disposal of other assets | (1) | ||
Impairment of assets | 0.4 | 2.9 | 0.8 |
Loss on debt refinancing | 40.1 | ||
Amortization of financing costs | 8 | 5.8 | 6.1 |
Deferred income taxes | 24.6 | (65.5) | (55.2) |
Other | 1.2 | (1.4) | 0.5 |
Cash flows before non-cash balances | 1,674.4 | 1,399.5 | 1,403.9 |
Net change in non-cash balances related to operating activities | (79.3) | (49) | (163.5) |
Cash flows provided by operating activities | 1,595.1 | 1,350.5 | 1,240.4 |
Cash flows related to investing activities | |||
Additions to property, plant and equipment | (389.3) | (369.7) | (407.2) |
Deferred subsidies (used) received to finance additions to property, plant and equipment | (39.3) | (123.1) | 162.4 |
Property plant and equipment additions and deferred subsidies (used) received | (428.6) | (492.8) | (244.8) |
Additions to intangible assets | (156.6) | (75.1) | (986.1) |
Business acquisitions | (2,069.6) | 1.4 | (6.7) |
Proceeds from disposals of assets | 1.7 | 7 | 7.7 |
Promissory note to the parent corporation | (836) | ||
Redemption of preferred shares from an affiliated corporation | 1,595 | ||
Other | (0.3) | (0.3) | (0.8) |
Cash flows used in investing activities | (1,894.4) | (559.8) | (1,230.7) |
Cash flows related to financing activities | |||
Net change in bank indebtedness | (0.4) | 0.4 | |
Net change under revolving facility, net of financing costs | 285 | (209.6) | 285 |
Issuance of long-term debt, net of financing costs | 2,092.5 | 1,986.8 | |
Repayment of long-term debt | (1,023.3) | ||
Repayment of lease liabilities | (94.8) | (42.1) | (39.4) |
Settlement of hedging contracts | 185.2 | ||
Dividends | (421) | (671) | (585) |
Dividends paid to non-controlling interests | (0.1) | (0.2) | (0.1) |
Repayment of a loan from the parent corporation | (1,595) | ||
Reduction of paid-up capital | (720) | ||
Cash flows provided by (used in) financing activities | 266.2 | (922.5) | 89.2 |
Net change in cash, cash equivalents and restricted cash | (33.1) | (131.8) | 98.9 |
Cash, cash equivalents and restricted cash at beginning of the year | 41.1 | 172.9 | 74 |
Cash, cash equivalents and restricted cash at end of the year | 8 | 41.1 | 172.9 |
Net change in non-cash balances related to operating activities (excluding the effect of business acquisitions and disposals) | |||
Accounts receivable | (99) | (87.1) | (201.3) |
Contract assets | (52.1) | 86.4 | 91.5 |
Amounts receivable from and payable to affiliated corporations | (16) | 10.6 | 16.3 |
Inventories | (29.3) | (93.1) | (33.5) |
Accounts payable, accrued charges and provisions | 149.4 | 44.1 | 2.5 |
Income taxes | (61.6) | (11) | (22.7) |
Deferred revenue | (2.7) | (7.4) | 13.9 |
Defined benefit plans | 9.8 | (1.8) | (1.7) |
Other | 22.2 | 10.3 | (28.5) |
Net change in non-cash balances related to operating activities | (79.3) | (49) | (163.5) |
Interest and taxes reflected as operating activities | |||
Cash interest payments | 374.4 | 242 | 244.8 |
Cash income tax payments (net of refunds) | $ 274 | $ 273.7 | $ 257.5 |
CONSOLIDATED STATEMENTS OF CA_2
CONSOLIDATED STATEMENTS OF CASH FLOWS - Cash information - CAD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
Cash, cash equivalents and restricted cash consist of | |||
Cash | $ 7.7 | $ 1.3 | $ 9.4 |
Cash equivalents | 0.3 | 0.5 | 1.1 |
Restricted cash | 39.3 | 162.4 | |
Cash, cash equivalents and restricted cash | $ 8 | $ 41.1 | $ 172.9 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS $ in Millions, $ in Millions | Dec. 31, 2023 CAD ($) | Dec. 31, 2022 CAD ($) |
Current assets | ||
Cash and cash equivalents | $ 8 | $ 1.8 |
Restricted cash | 39.3 | |
Accounts receivable | 963.2 | 619.1 |
Contract assets | 125.4 | 50.2 |
Amounts receivable from affiliated corporations | 25.1 | 13.6 |
Income taxes | 35.3 | |
Inventories | 348.7 | 247.2 |
Derivative financial instruments | 129.3 | |
Other current assets | 180.1 | 122 |
Total current assets | 1,815.1 | 1,093.2 |
Non-current assets | ||
Property, plant and equipment | 3,152.9 | 2,610.4 |
Intangible assets | 3,299.3 | 2,162.7 |
Right-of-use assets | 313 | 128.1 |
Goodwill | 550.1 | 550.1 |
Derivative financial instruments | 35.8 | 199.5 |
Investments | 1,595 | |
Promissory note to the parent corporation | 996 | 160 |
Other assets | 348.5 | 247.9 |
Total non-current assets | 8,695.6 | 7,653.7 |
Total assets | 10,510.7 | 8,746.9 |
Current liabilities | ||
Bank indebtedness | 0.4 | |
Accounts payable, accrued charges and provisions | 920.9 | 629.5 |
Amounts payable to affiliated corporations | 91 | 95.5 |
Deferred revenue | 347.4 | 277.1 |
Deferred subsidies | 0 | 39.3 |
Income taxes | 18.4 | 24.5 |
Current portion of long-term debt | 1,480.6 | |
Current portion of lease liabilities | 99.3 | 37.3 |
Total current liabilities | 2,957.6 | 1,103.6 |
Non-current liabilities | ||
Long-term debt | 6,129.3 | 5,318.3 |
Subordinated loan from the parent corporation | 1,595 | |
Lease liabilities | 246.8 | 121 |
Derivative financial instruments | 54.3 | |
Deferred income taxes | 759.2 | 715.5 |
Other liabilities | 207.6 | 124.3 |
Total non-current liabilities | 7,397.2 | 7,874.1 |
Equity | ||
Capital stock | 312.9 | 312.9 |
Deficit | (150.9) | (527.3) |
Accumulated other comprehensive loss | (6.4) | (16.7) |
Equity attributable to the shareholder | 155.6 | (231.1) |
Non-controlling interests | 0.3 | 0.3 |
Total equity | 155.9 | (230.8) |
Commitments and contingencies | ||
Total liabilities and equity | $ 10,510.7 | $ 8,746.9 |
NOTES TO CONSOLIDATED FINANCIAL
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS | 12 Months Ended |
Dec. 31, 2023 | |
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS | |
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS | Videotron Ltd. (“Videotron” or the “Corporation”) is incorporated under the laws of Québec. The Corporation is a wholly owned subsidiary of Quebecor Media Inc. (“Quebecor Media” or the “parent corporation”) and the ultimate parent corporation is Quebecor Inc. Unless the context otherwise requires, Videotron or the Corporation refer to Videotron Ltd. and its subsidiaries. The Corporation’s head office and registered office is located at 612 Saint-Jacques Street, Montreal, Québec, Canada. The percentages of voting rights and equity in its major subsidiaries are as follows: % equity and voting Freedom Mobile Inc. 100.0 % VMedia Inc. 100.0 % Videotron Infrastructures Inc. 100.0 % Videotron US Inc. 100.0 % SETTE Inc. 84.53 % The Corporation offers Internet access, television distribution, mobile and wireline telephony, business solutions and over-the-top (“OTT”) video services in Canada. |
SUMMARY OF MATERIAL ACCOUNTING
SUMMARY OF MATERIAL ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2023 | |
SUMMARY OF MATERIAL ACCOUNTING POLICIES | |
SUMMARY OF MATERIAL ACCOUNTING POLICIES | 1. SUMMARY OF MATERIAL ACCOUNTING POLICIES (a) Basis of presentation The consolidated financial statements have been prepared in accordance with International Financial Reporting Standards (“IFRS”) as issued by the International Accounting Standards Board (IASB). These consolidated financial statements have been prepared on a historical cost basis, except for certain financial instruments (note 1(i)), the liability related to stock-based compensation (note 1(s)) and the net defined benefit liability (note 1(t)), and they are presented in Canadian dollars (“CAN dollars”), which is the currency of the primary economic environment in which the Corporation operates (“functional currency”). Comparative figures for the years ended December 31, 2022 and 2021 have been restated to conform to the presentation adopted for the year ended December 31, 2023. (b) Consolidation The consolidated financial statements include the accounts of the Corporation and its subsidiaries. Intercompany transactions and balances are eliminated on consolidation. A subsidiary is an entity controlled by the Corporation. Control is achieved when the Corporation is exposed, or has rights, to variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity. Non-controlling interests in the net assets and results of consolidated subsidiaries are identified separately from the parent corporation’s ownership interest. Non-controlling interests in the equity of a subsidiary consist of the amount of non-controlling interests calculated at the date of the original business combination and their share of changes in equity since that date. Changes in non-controlling interests in a subsidiary that do not result in a loss of control by the Corporation are accounted for as equity transactions. (c) Business acquisition A business acquisition is accounted for by the acquisition method. The cost of an acquisition is measured at the fair value of the consideration given in exchange for control of the business acquired at the acquisition date. This consideration can be comprised of cash, assets transferred, financial instruments issued, or future contingent payments. The identifiable assets and liabilities of the acquired business are recognized at their fair value at the acquisition date. Results of operations of an acquired business are included in the Corporation’s consolidated financial statements from the date of the business acquisition. Business acquisition and integration costs are expensed as incurred and included as acquisition costs in the consolidated statements of income. 1. SUMMARY OF MATERIAL ACCOUNTING POLICIES (continued) (d) Foreign currency translation Foreign currency transactions are translated to the functional currency by applying the exchange rate prevailing at the date of the transaction. Translation gains and losses on monetary assets and liabilities denominated in a foreign currency are included in financial expenses, or in gain or loss on valuation and translation of financial instruments. (e) Revenue recognition The Corporation accounts for a contract with a customer only when all of the following criteria are met: ● the parties to the contract have approved the contract (in writing, orally or in accordance with other customary business practices) and are committed to perform their respective obligations; ● the entity can identify each party’s rights regarding the goods or services to be transferred; ● the entity can identify the payment terms for the goods or services to be transferred; ● the contract has commercial substance (i.e. the risk, timing or amount of the entity’s future cash flows is expected to change as a result of the contract); and ● it is probable that the entity will collect the consideration to which it is entitled in exchange for the goods or services to be transferred to the customer. The portion of revenues that is invoiced and unearned is presented as “Deferred revenue” on the consolidated balance sheets. Deferred revenue is usually recognized as revenue in the subsequent year. The Corporation provides services under multiple deliverable arrangements, mainly for mobile contracts in which the sale of mobile devices is bundled with telecommunication services over the contract term. The total consideration from a contract with multiple deliverables is allocated to all performance obligations in the contract based on the stand-alone selling price of each obligation. The total consideration can be comprised of an upfront fee or a number of monthly installments for the equipment sale and a monthly fee for the telecommunication service. Each performance obligation of multiple deliverable arrangements is then separately accounted for based on its allocated consideration amount. The Corporation does not adjust the amount of consideration allocated to the equipment sale for the effects of a financing component since this component is not significant. The Corporation recognizes each of its main activities’ revenues as follows: ● operating revenues from subscriber services, such as television distribution, Internet access, wireline and mobile telephony, and OTT video services are recognized when services are provided; ● revenues from equipment sales to subscribers are recognized when the equipment is delivered; ● operating revenues related to service contracts are recognized in income on a straight-line basis over the period in which the services are provided; and 1. SUMMARY OF MATERIAL ACCOUNTING POLICIES (continued) (e) Revenue recognition (continued) ● wireline connection and mobile activation revenues are deferred and recognized respectively as revenues over the period of time the customer is expected to remain a customer of the Corporation and over the contract term. When a mobile device and a service are bundled under a single mobile contract, the term of the contract is generally 24 months. The portion of mobile revenues earned without being invoiced is presented as contract assets on the consolidated balance sheets. Contract assets are realized over the term of the contract. (f) Impairment of assets For the purposes of assessing impairment, assets are grouped in cash-generating units (“CGUs”), which represent the lowest levels for which there are separately identifiable cash inflows generated by those assets. The Corporation reviews, at each balance sheet date, whether events or circumstances have occurred to indicate that the carrying amounts of its long-lived assets with finite useful lives may be less than their recoverable amounts. Goodwill, intangible assets having an indefinite useful life, and intangible assets not yet available for use are tested for impairment each financial year, as well as whenever there is an indication that the carrying amount of the asset, or the CGU to which an asset has been allocated, exceeds its recoverable amount. The recoverable amount is the higher of the fair value less costs of disposal and the value in use of the asset or the CGU. Fair value less costs of disposal represents the amount an entity could obtain at the valuation date from the asset’s disposal in an arm’s length transaction between knowledgeable, willing parties, after deducting the costs of disposal. The value in use represents the present value of the future cash flows expected to be derived from the asset or the CGU. An impairment loss is recognized in the amount by which the carrying amount of an asset or a CGU exceeds its recoverable amount. When the recoverable amount of a CGU to which goodwill has been allocated is lower than the CGU’s carrying amount, the related goodwill is first impaired. Any excess amount of impairment is recognized and attributed to assets in the CGU, prorated to the carrying amount of each asset in the CGU. An impairment loss recognized in prior periods for long-lived assets with finite useful lives and intangible assets having an indefinite useful life, other than goodwill, can be reversed through the consolidated statement of income to the extent that the resulting carrying value does not exceed the carrying value that would have been the result had no impairment loss been recognized previously. 1. SUMMARY OF MATERIAL ACCOUNTING POLICIES (continued) (g) Income taxes Current income taxes are recognized with respect to amounts expected to be paid or recovered under the tax rates and laws that have been enacted or substantively enacted at the balance sheet date. Deferred income taxes are accounted for using the liability method. Under this method, deferred income tax assets and liabilities are recognized for the estimated future tax consequences attributable to differences between the carrying amounts of existing assets and liabilities in the consolidated financial statements and their respective tax bases. Deferred income tax assets and liabilities are measured using enacted or substantively enacted tax rates in effect for the year in which those temporary differences are expected to be recovered or settled. The effect of a change in tax rates on deferred income tax assets and liabilities is recognized in income in the period that includes the substantive enactment date. A deferred tax asset is recognized initially when it is probable that future taxable income will be sufficient to use the related tax benefits and may be reduced subsequently, if necessary, to an amount that is more likely than not to be realized. A deferred tax expense or benefit is recognized either in other comprehensive income or directly in equity to the extent that it relates to items that are recognized in other comprehensive income or directly in equity in the same or a different period. In the course of the Corporation’s operations, there are a number of uncertain tax positions due to the complexity of certain transactions and to the fact that related tax interpretations and legislation are continually changing. When a tax position is uncertain, the Corporation recognizes an income tax benefit or reduces an income tax liability only when it is probable that the tax benefit will be realized in the future or when the income tax liability is no longer probable. (h) Leases The Corporation recognizes, for most of its leases, a right-of-use asset and a lease liability at the commencement of a lease. The right-of-use asset and the lease liability are initially measured at the present value of lease payments over the lease term, less incentive payments received, using the Corporation’s incremental borrowing rate at that date or the interest rate implicit in the lease. The term of the lease is comprised of the initial lease term and any additional period for which it is reasonably certain that the Corporation will exercise its extension option. Right-of-use assets are depreciated over the shorter of the lease term or the useful life of the underlying asset. Interest on lease liabilities is recorded in the consolidated statements of income as financial expenses and principal payments on the lease liability are presented as part of financing activities in the consolidated statements of cash flows. (i) Financial instruments Classification, recognition and measurement Most financial assets and liabilities are classified as subsequently measured at amortized cost, except for derivative financial instruments, investments in preferred shares of an affiliated corporation and loans from/to the parent corporation, which are measured at fair value through other comprehensive income or through profit or loss. Contingent consideration and future conditional adjustments arising from a business acquisition or disposal are measured at fair value at the transaction date with subsequent changes in fair value recorded in the consolidated statements of income. 1. SUMMARY OF MATERIAL ACCOUNTING POLICIES (continued) (i) Financial instruments (continued) Derivative financial instruments and hedge accounting The Corporation uses various derivative financial instruments to manage its exposure to fluctuations in foreign currency exchange rates and interest rates. The Corporation does not hold or use any derivative financial instruments for speculative purposes. Under hedge accounting, the Corporation documents all hedging relationships between hedging instruments and hedged items, as well as its strategy for using hedges and its risk-management objective. It also designates its derivative financial instruments as either fair value hedges or cash flow hedges when they qualify for hedge accounting. The Corporation assesses the effectiveness of its hedging relationships at initiation and on an ongoing basis. The Corporation generally enters into the following types of derivative financial instruments: ● The Corporation uses foreign exchange forward contracts to hedge foreign currency rate exposure on anticipated equipment or inventory purchases in a foreign currency. These foreign exchange forward contracts are designated as cash flow hedges. ● The Corporation uses cross-currency swaps to hedge (i) foreign currency rate exposure on interest and principal payments on foreign-currency-denominated debt and/or (ii) fair value exposure on certain debt resulting from changes in interest rates. The cross-currency swaps that set all future interest and principal payments on U.S.-dollar-denominated debt in fixed CAN dollars, in addition to converting an interest rate from a floating rate to a floating rate or from a fixed rate to a fixed rate, are designated as cash flow hedges. The cross-currency swaps are designated as fair value hedges when they set all future interest and principal payments on U.S.-dollar-denominated debt in fixed CAN dollars, in addition to converting the interest rate from a fixed rate to a floating rate. ● The Corporation uses interest rate swaps to manage fair value exposure on certain debts resulting from changes in interest rates. These swap agreements require a periodic exchange of payments without the exchange of the notional principal amount on which the payments are based. These interest rate swaps are designated as fair value hedges when they convert the interest rate from a fixed rate to a floating rate, or as cash flow hedges when they convert the interest rate from a floating rate to a fixed rate. ● The Corporation has established a hedge ratio of one for one for all its hedging relationships as the underlying risks of its hedging derivatives are identical to the hedged item risks. The Corporation measures and records the effectiveness of its hedging relationships as follows: ● For cash flow hedges, the hedge effectiveness is tested and measured by comparing changes in the fair value of the hedging derivative with the changes in the fair value of a hypothetical derivative that simulates the cash flows of the hedged item. ● For fair value hedges, the hedge effectiveness is tested and measured by comparing changes in the fair value of the hedging derivative with the changes in the fair value of the hedged item attributable to the hedged risk. ● Most of the Corporation’s hedging relationships are not generating material ineffectiveness. The ineffectiveness, if any, is recorded in the consolidated statements of income as a gain or loss on valuation and translation of financial instruments. 1. SUMMARY OF MATERIAL ACCOUNTING POLICIES (continued) (i) Financial instruments (continued) Derivative financial instruments and hedge accounting (continued) Under hedge accounting, the Corporation applies the following accounting policies: ● For derivative financial instruments designated as fair value hedges, changes in the fair value of the hedging derivative recorded in income are substantially offset by changes in the fair value of the hedged item to the extent that the hedging relationship is effective. When a fair value hedge is discontinued, the carrying value of the hedged item is no longer adjusted and the cumulative fair value adjustments to the carrying value of the hedged item are amortized to income over the remaining term of the original hedging relationship. ● For derivative financial instruments designated as cash flow hedges, the effective portion of a hedge is reported in other comprehensive income until it is recognized in income during the same period in which the hedged item affects income, while the ineffective portion is immediately recognized in income. When a cash flow hedge is discontinued, the amounts previously recognized in accumulated other comprehensive income are reclassified to income when the variability in the cash flows of the hedged item affects income. Any change in the fair value of derivative financial instruments recorded in income is included in gain or loss on valuation and translation of financial instruments. Interest expense on hedged long-term debt is reported at the hedged interest and foreign currency rates. Derivative financial instruments that do not qualify for hedge accounting, including derivatives that are embedded in financial or non-financial contracts that are not closely related to the host contracts, are reported on a fair value basis on the consolidated balance sheets. Any change in the fair value of these derivative financial instruments is recorded in the consolidated statements of income as a gain or loss on valuation and translation of financial instruments. (j) Financing costs Financing costs related to long-term debt are capitalized in reduction of long-term debt and amortized using the effective interest rate method. (k) Tax credits, government assistance and deferred subsidies The Corporation receives tax credits mainly related to its research and development activities and has access to several government programs designed to support large investment projects and the roll-out of high-speed Internet services in various regions of Québec. Government financial assistance is accounted for as revenue or as a reduction in related costs, whether capitalized and amortized or expensed, in the year the costs are incurred and when management has reasonable assurance that the conditions of the government programs are being met. In particular, when government assistance is received in advance, as it was for the program to support the roll-out of high-speed Internet services in various regions of Québec ($216.2 million received in March 2021), the amount received is recorded as deferred subsidies on the consolidated balance sheets. When the investments required under the program are realized, the corresponding subsidies are recognized as a reduction in additions to property, plant and equipment. No amount was deferred as of December 31, 2023 since all investments under this program have been incurred (a balance of $39.3 million as of December 31, 2022). 1. SUMMARY OF MATERIAL ACCOUNTING POLICIES (continued) (l) Cash and cash equivalents Cash and cash equivalents include highly liquid investments purchased three months or less from maturity and are recorded at fair value. These highly liquid investments consist mainly of Bankers’ acceptances and term deposits. (m) Trade receivables and contract assets Trade receivables and contract assets are presented net of a provision for expected credit losses. The Corporation is using the IFRS 9 expected credit losses method to estimate that provision, which considers the specific credit risk of its customers, the expected lifetime of its financial assets, historical trends and economic conditions. Amounts receivable are written off when deemed uncollectible. (n) Inventories Inventories are valued at the lower of cost, determined by the first-in, first-out method or the weighted-average cost method, and net realizable value. Net realizable value represents the estimated selling price in the ordinary course of business, less the estimated costs of completion and the estimated costs necessary to make the sale. When the circumstances that previously caused inventories to be written down below cost no longer exist, the amount of the write-down is reversed. Inventories related to audiovisual content comprise broadcast rights, which are essentially contractual rights allowing the limited or unlimited broadcast of televisual products or movies. The Corporation records the rights acquired as inventory and the obligations incurred under a licence agreement as a liability when the contractual broadcast period begins and the contractual conditions of the licence are met. Audiovisual content costs are amortized to operating expenses on a straight-line basis over the contractual broadcasting period or a period not exceeding 3 years beginning at the moment that the content is made available on the Corporation’s OTT video services platforms. The net realizable value of inventories related to audiovisual content is examined periodically by management and revised as necessary. The carrying value of the related inventories is reduced to the net realizable value, if necessary, based on this assessment. (o) Property, plant and equipment Property, plant and equipment are recorded at cost. Cost represents the acquisition costs, net of government subsidies and investment tax credits, or construction costs, including preparation, installation and testing costs. In the case of projects to construct wireline and mobile networks, the cost includes equipment, direct labour and related overhead costs. Projects under development may also be comprised of advance payments made to suppliers for equipment under construction. Borrowing costs are also included in the cost of property, plant and equipment during the development phase. Expenditures, such as maintenance and repairs, are expensed as incurred. Depreciation is calculated on a straight-line basis over the following estimated useful lives: Assets Estimated useful lives Buildings and leasehold improvements 5 to 40 years Furniture and equipment 3 to 7 years Telecommunication networks 3 to 20 years 1. SUMMARY OF MATERIAL ACCOUNTING POLICIES (continued) (o) Property, plant and equipment (continued) Depreciation methods, residual values, and the useful lives of significant property, plant and equipment are reviewed at least once a year. Any change is accounted for prospectively as a change in accounting estimate. Leasehold improvements are depreciated over the shorter of the term of the lease and their estimated useful life. A decommissioning obligation in connection with the Corporation’s mobile network is recorded at the net present value of the estimated future expenditures required to settle the estimated future obligation at the consolidated balance sheet date. Changes in estimates of the decommissioning obligation are reflected in property, plant and equipment on the consolidated balance sheets. The Corporation does not record any decommissioning obligations in connection with its wireline distribution networks. The Corporation expects to renew all of its agreements with utility companies to access their support structures in the future, making the retirement date so far into the future that the present value of the restoration costs is insignificant for those assets. The Corporation is engaged in an agreement to operate a shared LTE network in the Province of Québec and in the Ottawa area. (p) Goodwill and intangible assets Goodwill Goodwill initially arising from a business acquisition is measured and recognized as the excess of the fair value of the consideration paid over the fair value of the recognized identifiable assets acquired and liabilities assumed. Goodwill is allocated as at the date of a business acquisition to a CGU for purposes of impairment testing (note 1(f)). The allocation is made to the CGU or group of CGUs expected to benefit from the synergies of the business acquisition. Intangible assets Spectrum licences are recorded at cost. Spectrum licences have an indefinite useful life and are not amortized, in view of the following facts: (i) the Corporation intends to renew the spectrum licences and believes that they are likely to be renewed by Innovation, Science and Economic Development Canada (“ISED Canada”); (ii) the Corporation has the financial and operational ability to renew these spectrum licences; (iii) currently, the competitive, legal and regulatory landscape does not limit the useful lives of the spectrum licences; and (iv) the Corporation foresees no limit to the period during which these licences can be expected to generate cash flows in the future. Software is recorded at cost. In particular, internally generated intangible assets such as software and website development are mainly comprised of internal costs in connection with the development of assets to be used internally or to provide services to customers. These costs are capitalized when the development stage of the software application begins and costs incurred prior to that stage are recognized as expenses. Customer relationships, brand names and other intangible assets acquired through a business acquisition are recorded at fair value at the date of acquisition. Brand names have an indefinite useful life as long as they are expected to generate cash flows in the future and the Corporation intends to use them. 1. SUMMARY OF MATERIAL ACCOUNTING POLICIES (continued) (p) Goodwill and intangible assets (continued) Intangible assets (continued) Borrowing costs directly attributable to the acquisition, development or production of an intangible asset are also included as part of the cost of that asset during the development phase. Intangible assets with finite useful lives are amortized over their useful lives using the straight-line method over the following periods: Assets Estimated useful lives Software 3 to 7 years Customer relationships and other 5 to 8 years Amortization methods, residual values, and the useful lives of significant intangible assets are reviewed at least once a year. Any change is accounted for prospectively as a change in accounting estimate. (q) Contract costs Incremental and direct costs, such as costs to obtain a contract, mainly sales commissions, or the cost of connecting a subscriber to the Corporation’s telecommunication network, are included in contract costs and amortized over the period of time the customer is expected to maintain its service or over the contract term. The amortization of contract costs is included in purchase of goods and services in the consolidated statements of income. (r) Provisions Provisions are recognized (i) when the Corporation has a present legal or constructive obligation as a result of a past event and it is probable that an outflow of economic benefits will be required to settle the obligation, and (ii) when the amount of the obligation can be reliably estimated. Restructuring costs, comprised primarily of termination benefits, are recognized when a detailed plan for the restructuring exists and a valid expectation has been raised in those affected, that the plan will be carried out. Provisions are reviewed at each consolidated balance sheet date and changes in estimates are reflected in the consolidated statements of income in the reporting period in which the changes occur. (s) Stock-based compensation Stock-based awards to employees that call for settlement in cash, such as deferred share units (“DSUs”), or that call for settlement in cash at the option of the employee, such as stock option awards, are accounted for at fair value and classified as a liability. The compensation cost is recognized in expenses over the vesting period. Changes in the fair value of stock-based awards between the grant date and the measurement date result in a change in the liability and compensation cost. The fair value of DSUs is based on the underlying share price at the date of valuation. The fair value of stock option awards is determined by applying an option pricing model, taking into account the terms and conditions of the grant. Key assumptions are described in note 19. 1. SUMMARY OF MATERIAL ACCOUNTING POLICIES (continued) (t) Pension plans and postretirement benefits The Corporation offers defined contribution pension plans and defined benefit pension plans to some of its employees. (i) Defined contribution pension plans Under its defined contribution pension plans, the Corporation pays fixed contributions to participating employees’ pension plans and has no legal or constructive obligation to pay any further amounts. Obligations for contributions to defined contribution pension plans are recognized as employee benefits in the consolidated statements of income when the contributions become due. (ii) Defined benefit pension plans and postretirement plans Defined benefit pension plan costs are determined using actuarial methods and are accounted for using the projected unit credit method, which incorporates management’s best estimates of future salary levels, other cost escalations, retirement ages of employees, and other actuarial factors. Defined benefit pension costs recognized in the consolidated statements of income as employee costs, mainly include the following: ● service costs provided in exchange for employee services rendered during the period; ● prior service costs recognized at the earlier of (a) when the employee benefit plan is amended or (b) when restructuring costs are recognized; and ● curtailment or settlement gain or loss. Interest on net defined benefit liability or asset recognized in the consolidated statements of income as financial expenses, is determined by multiplying the net defined benefit liability or asset by the discount rate used to determine the defined benefit obligation. Re-measurements of the net defined benefit liability or asset are recognized immediately in other comprehensive income (loss) and in accumulated other comprehensive (loss) income. Re-measurements are comprised of the following: ● actuarial gains and losses arising from changes in financial and demographic actuarial assumptions used to determine the defined benefit obligation or from experience adjustments to liabilities; ● the difference between actual return on plan assets and interest income on plan assets anticipated as part of the interest on net defined benefit liability or asset calculation; and ● changes in the net benefit asset limit or in the minimum funding liability. 1. SUMMARY OF MATERIAL ACCOUNTING POLICIES (continued) (t) Pension plans and postretirement benefits (continued) (ii) Defined benefit pension plans and postretirement plans (continued) Recognition of a net benefit asset is limited under certain circumstances to the amount recoverable, which is primarily based on the present value of future contributions to the plan, to the extent that the Corporation can unilaterally reduce those future contributions. In addition, an adjustment to the net benefit asset or the net benefit liability can be recorded to reflect a minimum funding liability in a certain number of the Corporation’s pension plans. The Corporation also offers discounts on telecommunication services and health, life and dental insurance plans to some of its retired employees. The cost of postretirement benefits is determined using an accounting methodology similar to that for defined benefit pension plans. The benefits related to these plans are funded by the Corporation as they become due. (u) Use of estimates and judgments The preparation of consolidated financial statements in accordance with IFRS requires management to make estimates, assumptions and judgments that affect the reported amounts of assets and liabilities, related amounts of revenues and expenses, and disclosure of contingent assets and liabilities. Although these estimates are based on management’s best judgment and information available at the time of the assessment date, actual results could differ from those estimates. The following significant areas represent management’s most difficult, subjective or complex estimates: (i) Recoverable amount of an asset or a CGU When an impairment test is performed on an asset or a CGU, management estimates the recoverable amount of the asset or CGU based on its fair value less costs of disposal or its value in use. These estimates are based on valuation models requiring the use of a number of assumptions such as forecasts of future cash flows, pre-tax discount rate (WACC) and perpetual growth rate. These assumptions have a significant impact on the results of impairment tests and on the impairment charge, as the case may be, recorded in the consolidated statements of income. A description of key assumptions used in the goodwill impairment tests and a sensitivity analysis of recoverable amounts are presented in |
EMPLOYEE COSTS AND PURCHASE OF
EMPLOYEE COSTS AND PURCHASE OF GOODS AND SERVICES | 12 Months Ended |
Dec. 31, 2023 | |
EMPLOYEE COSTS AND PURCHASE OF GOODS AND SERVICES | |
EMPLOYEE COSTS AND PURCHASE OF GOODS AND SERVICES | 2. The main components are as follows: 2023 2022 2021 Employee costs $ 636.4 $ 539.5 $ 574.3 Less employee costs capitalized to property, plant and equipment and to intangible assets (164.1) (141.8) (168.4) 472.3 397.7 405.9 Purchase of goods and services: 1 Royalties and rights 425.5 416.0 401.0 Cost of products sold 824.6 460.3 497.3 Subcontracting costs 109.9 92.9 147.7 Marketing and distribution expenses 95.1 62.1 61.3 Other 496.3 376.3 346.1 1,951.4 1,407.6 1,453.4 $ 2,423.7 $ 1,805.3 $ 1,859.3 1 Cost of inventories included in purchase of goods and services amounted to $739.8 million in 2023 ( $444.2 million in 2022 and $470.7 million in 2021). Write-downs of inventories totalling $3.8 million were recognized in purchase of goods and services in 2023 ( $3.1 million in 2022 and $2.0 million in 2021). |
FINANCIAL EXPENSES
FINANCIAL EXPENSES | 12 Months Ended |
Dec. 31, 2023 | |
FINANCIAL EXPENSES | |
FINANCIAL EXPENSES | 3. FINANCIAL EXPENSES 2023 2022 2021 Third parties: Interest on long-term debt $ 366.1 $ 235.3 $ 228.0 Amortization of financing costs 8.0 5.8 6.1 Interest on lease liabilities 16.2 5.3 5.4 Interest on net defined benefit liability 0.9 3.1 5.4 (Gain) loss on foreign currency translation of short-term monetary items (0.6) 2.8 (1.1) Other 4.3 0.5 (3.7) 394.9 252.8 240.1 Affiliated corporations: Interest expense 126.2 182.5 175.5 Dividend income (127.5) (184.4) (177.4) Interest on lease liabilities 1.3 1.5 1.7 Interest income (63.9) (7.8) (7.8) (63.9) (8.2) (8.0) $ 331.0 $ 244.6 $ 232.1 |
RESTRUCTURING, ACQUISITION COST
RESTRUCTURING, ACQUISITION COSTS AND OTHER | 12 Months Ended |
Dec. 31, 2023 | |
RESTRUCTURING, ACQUISITION COSTS AND OTHER | |
RESTRUCTURING, ACQUISITION COSTS AND OTHER | 4. 2023 2022 2021 Restructuring $ 4.9 $ 3.9 $ 12.3 Acquisition costs 1 15.6 6.5 — Impairment of assets 0.4 2.9 0.8 Other (0.5) (0.6) (1.5) $ 20.4 $ 12.7 $ 11.6 1 Includes acquisition costs mainly related to the Freedom acquisition (note 7). |
LOSS ON DEBT REFINANCING
LOSS ON DEBT REFINANCING | 12 Months Ended |
Dec. 31, 2023 | |
LOSS ON DEBT REFINANCING | |
LOSS ON DEBT REFINANCING | 5. LOSS ON DEBT REFINANCING On June 3, 2021, Videotron issued a redemption notice for its Senior Notes in aggregate principal amount of US$800.0 million, bearing interest at 5.000% and due July 15, 2022, at a redemption price of 104.002% of their principal amount. As a result, a net loss of $40.1 million was recorded in the consolidated statement of income in 2021, including a gain of $1.0 million previously recorded in other comprehensive income. In July 2021, the Senior Notes were redeemed, and the related hedging contracts were unwound, for a total cash consideration of $838.1 million, including the early redemption premium. |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 31, 2023 | |
INCOME TAXES | |
INCOME TAXES | 6. The following table reconciles income taxes at the Corporation’s domestic statutory tax rate of 26.5% in 2023 (26.5% in 2022 and 2021) with income taxes in the consolidated statements of income: 2023 2022 2021 Income taxes at domestic statutory tax rate $ 274.3 $ 253.1 $ 231.5 (Reduction) increase resulting from: Non-deductible charges, non-taxable income and differences between current and future tax rates 0.1 (0.5) (5.7) Tax consolidation transactions (note 25) (33.8) (48.9) (47.0) Other (2.9) (5.8) 1.5 Income taxes $ 237.7 $ 197.9 $ 180.3 The significant items comprising the Corporation’s net deferred income tax liability and their impact on the deferred income tax expense are as follows: Consolidated Consolidated balance sheets income statements 2023 2022 2023 2022 2021 Loss carryforwards $ 98.8 $ — $ 0.9 $ — $ — Decommissioning obligation 37.6 15.6 (0.3) — — Defined benefit plans 4.8 3.4 (3.1) — (2.3) Contract assets (45.2) (18.3) 13.8 (22.9) (24.3) Property, plant and equipment (414.3) (400.7) 8.3 (34.8) (24.4) Goodwill, intangible assets and other assets (449.1) (323.9) 19.2 (7.7) 7.4 Long-term debt and derivative financial instruments (5.0) (4.8) 0.7 3.9 (6.1) Other 13.2 13.2 (14.9) (4.0) (5.5) $ (759.2) $ (715.5) $ 24.6 $ (65.5) $ (55.2) 6. Changes in the net deferred income tax liability are as follows: Note 2023 2022 Balance at beginning of year $ (715.5) $ (762.7) Recognized in income as continuing operations (24.6) 65.5 Recognized in other comprehensive income (1.2) (14.3) Business acquisitions 7 (17.9) (4.0) Balance at end of year $ (759.2) $ (715.5) As of December 31, 2023, the Corporation had loss carryforwards for income tax purposes of $374.8 million available to reduce future taxable income, which will expire between 2029 and 2043. These losses have been recognized. There are no income tax consequences attached to the payment of dividends or distributions by the Corporation to its shareholder. |
BUSINESS ACQUISITIONS
BUSINESS ACQUISITIONS | 12 Months Ended |
Dec. 31, 2023 | |
BUSINESS ACQUISITIONS | |
BUSINESS ACQUISITIONS | 7. 2023 On April 3, 2023, Videotron acquired all the issued shares of Freedom Mobile Inc. (“Freedom”) from Shaw Communications Inc. (“Shaw”) for a cash consideration of $2.07 billion, net of cash acquired of $103.2 million. As part of this transaction, Videotron assumed certain debts, mainly lease obligations. The consideration paid is still subject to certain post-closing adjustments. This acquisition immediately preceded the acquisition of Shaw by Rogers Communications Inc. (“Rogers”). All required regulatory approvals were obtained prior to both transactions. The acquisition of Freedom includes the Freedom Mobile brand’s entire wireless and Internet customer base, as well as its owned infrastructure, spectrum and retail outlets. It also includes a long-term undertaking by Shaw and Rogers to provide Videotron with transport services (including backhaul and backbone), roaming services and wholesale Internet services. Videotron has also made certain commercial commitments to the Minister of Innovation, Science and Industry. These transactions will support the expansion of the Corporation’s telecommunications services in Ontario and Western Canada. 7. The table below presents the fair value of the net assets acquired as of the acquisition date: Assets Accounts receivable $ 257.3 Other current assets 1 181.3 Property, plant and equipment 2 709.1 Intangible assets 3 1,177.7 Right-of-use of assets 226.2 Other assets 65.8 2,617.4 Liabilities Accounts payable, accrued charges and provisions (127.2) Other current liabilities (94.2) Lease liabilities (226.2) Deferred income taxes (17.9) Other liabilities (84.1) (549.6) Net assets acquired $ 2,067.8 Cash consideration paid $ 2,171.0 Cash acquired (103.2) $ 2,067.8 1 Includes mainly inventories and contract assets. 2 Includes mainly the wireless network (note 9). 3 Includes mainly spectrum licences, software, customer relationships, the Freedom brand and others (note 10). The Freedom acquisition contributed revenues of $850.1 million and net income of $94.0 million from April 3, 2023 to December 31, 2023, excluding financial expenses incurred on the term credit facility entered into in April 2023 to finance the acquisition (note 15). 2022 In 2022, Quebecor Media transferred to Videotron all shares of VMedia Inc., an independent telecommunications service provider acquired in July 2022, in exchange for the issuance of 20,958 common shares with a value of $17.3 million (note 18) and a contingent balance payable. The cash acquired relating to this transaction amounted to $1.4 million. A contingent consideration of $1.8 million was paid in the third quarter of 2023. 2021 In 2021, the Corporation acquired businesses for a total cash consideration of $6.7 million. |
ACCOUNTS RECEIVABLE
ACCOUNTS RECEIVABLE | 12 Months Ended |
Dec. 31, 2023 | |
ACCOUNTS RECEIVABLE | |
ACCOUNTS RECEIVABLE | 8. ACCOUNTS RECEIVABLE 2023 2022 Trade $ 835.3 $ 551.6 Other 127.9 67.5 $ 963.2 $ 619.1 |
PROPERTY, PLANT AND EQUIPMENT
PROPERTY, PLANT AND EQUIPMENT | 12 Months Ended |
Dec. 31, 2023 | |
PROPERTY, PLANT AND EQUIPMENT | |
PROPERTY, PLANT AND EQUIPMENT | 9. Changes in the net carrying amount of property, plant and equipment are as follows: Land, buildings and Telecom- Projects leasehold Furniture and munication under improvements equipment networks development Total Cost Balance as of December 31, 2021 $ 233.8 $ 1,383.0 $ 6,841.2 $ 95.8 $ 8,553.8 Additions 3.1 66.8 257.1 42.7 369.7 Net change in additions financed with non-cash balances — (2.6) (9.5) 14.7 2.6 Reclassification (6.4) 6.8 82.0 (82.4) — Retirement, disposals and other (2.0) (137.4) (60.3) — (199.7) Balance as of December 31, 2022 228.5 1,316.6 7,110.5 70.8 8,726.4 Additions 1.4 56.9 205.0 126.0 389.3 Net change in additions financed with non-cash balances — 0.2 22.1 (21.6) 0.7 Business acquisitions (note 7) 11.3 16.7 598.0 83.1 709.1 Reclassification 0.4 2.9 95.6 (98.9) — Retirement, disposals and other (4.4) (82.2) (71.8) — (158.4) Balance as of December 31, 2023 $ 237.2 $ 1,311.1 $ 7,959.4 $ 159.4 $ 9,667.1 Land, buildings and Telecom- Projects leasehold Furniture and munication under improvements equipment networks development Total Accumulated depreciation and impairment losses Balance as of December 31, 2021 $ 95.0 $ 1,150.2 $ 4,547.0 $ — $ 5,792.2 Depreciation 6.2 78.6 431.2 — 516.0 Retirement, disposals and other (2.0) (132.7) (57.5) — (192.2) Balance as of December 31, 2022 99.2 1,096.1 4,920.7 — 6,116.0 Depreciation 9.1 74.2 467.9 — 551.2 Retirement, disposals and other (2.1) (80.2) (70.7) — (153.0) Balance as of December 31, 2023 $ 106.2 $ 1,090.1 $ 5,317.9 $ — $ 6,514.2 Net carrying amount As of December 31, 2022 $ 129.3 $ 220.5 $ 2,189.8 $ 70.8 $ 2,610.4 As of December 31, 2023 131.0 221.0 2,641.5 159.4 3,152.9 |
INTANGIBLE ASSETS
INTANGIBLE ASSETS | 12 Months Ended |
Dec. 31, 2023 | |
INTANGIBLE ASSETS | |
INTANGIBLE ASSETS | 10. INTANGIBLE ASSETS Changes in the net carrying amount of intangible assets are as follows: Customer relationships, brand names, projects under Spectrum development licences Software and other Total Cost Balance as of December 31, 2021 $ 1,809.3 $ 1,339.1 $ 212.3 $ 3,360.7 Additions — 48.0 27.1 75.1 Net change in additions financed with non-cash balances — 5.5 (2.6) 2.9 Business acquisitions (note 7) — 11.7 6.1 17.8 Reclassification — 165.2 (165.2) — Retirement, disposals and other — (29.8) (0.3) (30.1) Balance as of December 31, 2022 1,809.3 1,539.7 77.4 3,426.4 Additions 1 9.9 93.1 53.6 156.6 Net change in additions financed with non-cash balances — (12.6) 8.9 (3.7) Business acquisitions (note 7) 791.7 89.9 296.1 1,177.7 Reclassification — 72.0 (72.0) — Retirement, disposals and other — (30.0) — (30.0) Balance as of December 31, 2023 $ 2,610.9 $ 1,752.1 $ 364.0 $ 4,727.0 Customer relationships, brand names, projects under Spectrum development licences Software and other Total Accumulated amortization and impairment losses Balance as of December 31, 2021 $ 247.7 $ 890.1 $ 10.9 $ 1,148.7 Amortization — 139.4 3.0 142.4 Retirement, disposals and other — (27.1) (0.3) (27.4) Balance as of December 31, 2022 247.7 1,002.4 13.6 1,263.7 Amortization — 167.1 26.9 194.0 Retirement, disposals and other — (30.0) — (30.0) Balance as of December 31, 2023 $ 247.7 $ 1,139.5 $ 40.5 $ 1,427.7 Net carrying amount As of December 31, 2022 $ 1,561.6 $ 537.3 $ 63.8 $ 2,162.7 As of December 31, 2023 2,363.2 612.6 323.5 3,299.3 1 In 2023, Videotron acquired spectrum licences in the 600 MHz band in Manitoba and in the 3500 MHz band in Québec. The net carrying value of intangible assets with an indefinite useful life, mainly spectrum licences and brand names, was $2,462.0 million as of December 31, 2023 ($1,567.6 million as of December 31, 2022). |
RIGHT-OF-USE ASSETS
RIGHT-OF-USE ASSETS | 12 Months Ended |
Dec. 31, 2023 | |
RIGHT-OF-USE ASSETS | |
RIGHT-OF-USE ASSETS | 11. RIGHT-OF-USE ASSETS Changes in the net carrying amount of right-of-use assets which mainly relate to leases of premises and vehicles, are as follows: Note 2023 2022 Cost Balance at beginning of year $ 381.5 $ 352.8 Additions financed with lease obligations 56.9 45.3 Business acquisitions 7 226.2 — Retirement and other (16.9) (16.6) Balance at end of year 647.7 381.5 Accumulated depreciation Balance at beginning of year 253.4 229.9 Depreciation 98.8 41.2 Retirement and other (17.5) (17.7) Balance at end of year 334.7 253.4 Net carrying amount $ 313.0 $ 128.1 The Corporation does not recognize right-of-use assets and lease liabilities for short-term leases and leases of low value assets. The net carrying amount includes right-of-use assets with affiliated corporations of $12.4 million as of December 31, 2023 ($15.5 million as of December 31, 2022). The depreciation expense on leases with affiliated corporations was $4.2 million in 2023 ($4.3 million in 2022). |
GOODWILL
GOODWILL | 12 Months Ended |
Dec. 31, 2023 | |
GOODWILL | |
GOODWILL | 12. GOODWILL Changes in the net carrying amount of goodwill are as follows: Note 2023 2022 Cost Balance at beginning of year $ 618.6 $ 611.1 Business acquisitions 7 — 7.5 Balance at end of year 618.6 618.6 Accumulated impairment losses Balance at beginning and at end of year 68.5 68.5 Net carrying amount $ 550.1 $ 550.1 Recoverable amount The recoverable amount of the Telecommunications CGU was determined based on the higher of a value in use or a fair value less costs of disposal with respect to the impairment tests performed. The Corporation uses the discounted cash flow method to estimate the recoverable amount, consisting of future cash flows derived primarily from the most recent budget and three-year strategic plan approved by the Corporation’s management and the Board of Directors. These forecasts considered the CGU’s past operating performance and market share as well as economic trends, along with specific and market industry trends and corporate strategies. In particular, specific assumptions are used for each type of revenue generated by the CGU or for each type of expense, as well as for future capital expenditures. Such assumptions will consider, among many other factors, subscribers, competitive landscape, evolution of product and service offerings, wireless penetration growth, technology evolution, bargaining agreements, Canadian GDP rates and operating cost structures. 12. GOODWILL (continued) Recoverable amount (continued) A perpetual growth rate is used for cash flows beyond the three-year strategic plan period. The discount rate used by the Corporation is a pre-tax rate derived from the weighted average cost of capital pertaining to the CGU, which reflects the current market assessment of (i) the time value of money, and (ii) the risk specific to the assets for which the future cash flow estimates have not been risk-adjusted. The perpetual growth rate was determined with regard to the specific markets in which the CGU participates. The following key assumptions were used to determine recoverable amounts in the most recent impairment tests performed: 2023 2022 Pre-tax discount Perpetual Pre-tax discount Perpetual CGU group rate (WACC) growth rate rate (WACC) growth rate Telecommunications 1 10.8 % 2.0 % 10.5 % 2.0 % 1 The recoverable amounts were based on value in use, using the discounted cash flow method. No reasonable changes in the discount rate or in the perpetual growth rate used in the most recent test performed would have caused the carrying value to exceed the recoverable amount of the Telecommunications CGU. |
OTHER ASSETS
OTHER ASSETS | 12 Months Ended |
Dec. 31, 2023 | |
OTHER ASSETS | |
OTHER ASSETS | 13. OTHER ASSETS 2023 2022 Equipment installments receivable $ 648.0 $ 431.3 Contract costs 1 231.7 175.4 Contract assets 2 171.9 69.1 Other 25.0 20.1 1,076.6 695.9 Less current portion of equipment installments receivable (included in “Accounts receivable”) (475.9) (321.9) Less current portion of contract costs (included in “Other current assets”) (126.8) (75.9) Less current portion of contract assets (125.4) (50.2) $ 348.5 $ 247.9 1 Amortization amounted to $128.9 million in 2023 ( $81.4 million in 2022 and $73.3 million in 2021). 2 Impairment loss on contract assets resulting from mobile contracts being cancelled prior to their initial term amounted to $2.8 million in 2023 ( $9.9 million in 2022 and $17.1 million in 2021), net of the early termination penalty charged to the customer. In current and comparative periods, there were no significant cumulative catch-up adjustments to revenue that affected the corresponding contract asset, including adjustments arising from a change in an estimate of the transaction price or a contract modification. There were also no significant changes in the time frame for a performance obligation to be satisfied. |
ACCOUNTS PAYABLE, ACCRUED CHARG
ACCOUNTS PAYABLE, ACCRUED CHARGES AND PROVISIONS | 12 Months Ended |
Dec. 31, 2023 | |
ACCOUNTS PAYABLE, ACCRUED CHARGES AND PROVISIONS | |
ACCOUNTS PAYABLE, ACCRUED CHARGES AND PROVISIONS | 14. ACCOUNTS PAYABLE, ACCRUED CHARGES AND PROVISIONS 2023 2022 Trade and accruals $ 731.3 $ 502.6 Salaries and employee benefits 127.8 72.1 Interest payable 52.2 42.9 Provisions and other 9.6 11.9 $ 920.9 $ 629.5 |
LONG-TERM DEBT
LONG-TERM DEBT | 12 Months Ended |
Dec. 31, 2023 | |
LONG-TERM DEBT | |
LONG-TERM DEBT | 15. Effective interest rate as of December 31, 2023 2023 2022 Bank credit facilities (i) 6.89 % $ 2,419.0 $ 77.5 Senior Notes (ii) 5,226.3 5,279.1 Total long-term debt 7,645.3 5,356.6 Change in fair value related to hedged interest rate risk (2.2) (5.6) Financing costs, net of amortization (33.2) (32.7) (35.4) (38.3) 7,609.9 5,318.3 Less current portion (1,480.6) — $ 6,129.3 $ 5,318.3 As of December 31, 2023, the carrying value of long-term debt denominated in U.S. dollars, excluding financing costs, was $4,484.5 million ($2,298.5 million as of December 31, 2022) while the net fair value of related hedging derivative instruments was in an asset position of $106.9 million ($196.1 million as of December 31, 2022). (i) The bank credit facilities provide for a $2,000.0 million ( $1,500.0 million as of December 31, 2022) secured revolving credit facility that matures in July 2026 and a $2,100.0 million secured term credit facility entered into in April 2023, consisting of three tranches of equal size maturing in October 2024, April 2026 and April 2027. The credit facilities bear interest at Bankers’ acceptance rate, Secured Overnight Financing Rate (“SOFR”), Canadian prime rate or U.S. prime rate, plus a premium determined by the Corporation’s leverage ratio. The bank credit facilities are secured by a first ranking hypothec on the universality of all tangible and intangible assets, current and future, of the Corporation and most of its wholly owned subsidiaries. As of December 31, 2023, the bank credit facilities were secured by assets with a carrying value of $10,461.6 million ( $8,729.9 million in 2022). The bank credit facilities contain covenants such as maintaining certain financial ratios, as well as limitations on the Corporation’s ability to incur additional indebtedness, pay dividends, or make other distributions. As of December 31, 2023, $361.0 million was drawn on the secured revolving credit facility ( $77.5 million as of December 31, 2022) and $2,058.0 million was outstanding on the secured term credit facility. In 2023, Videotron contracted new unsecured on-demand credit facilities under which letters of credit of $290.9 million, as of December 31, 2023, were issued and submitted to ISED Canada for the investment in blocks of spectrum in the 3800 MHz band announced on November 30, 2023 (note 27). (ii) The Senior Notes are unsecured and contain certain restrictions on the Corporation, including limitations on its ability to incur additional indebtedness, pay dividends, or make other distributions. Some Notes are redeemable at the option of the issuer, in whole or in part, at a price based on a make-whole formula during the first three or five years of the term of the Notes and at a decreasing premium thereafter, while the remaining Notes are redeemable at a price based on a make-whole formula at any time prior to maturity. The Senior Notes are guaranteed by specific subsidiaries of the Corporation. The following table summarizes the terms of the outstanding Senior Notes as of December 31, 2023: 15. Annual nominal Interest payable Principal amount interest rate Maturity date every 6 months on US $ 600.0 5.375 % June 15, 2024 June and December 15 $ 400.0 5.625 % June 15, 2025 April and October 15 $ 375.0 5.750 % January 15, 2026 March and September 15 US $ 600.0 5.125 % April 15, 2027 April and October 15 $ 800.0 4.500 % January 15, 2030 April and October 15 $ 650.0 1 3.125 % January 15, 2031 January and July 15 $ 750.0 2 3.625 % June 15, 2028 June and December 15 US $ 500.0 3 3.625 % June 15, 2029 June and December 15 1 The Notes were issued in January 2021 for net proceeds of $644.0 million, net of financing costs of $6.0 million. 2 The Notes were issued in June 2021 for net proceeds of $743.2 million, net of financing costs of $6.8 million. 3 The Notes were issued in June 2021 for net proceeds of $599.6 million, net of financing costs of $5.8 million. On December 31, 2023, the Corporation was in compliance with all debt covenants. Principal repayments of long-term debt over the coming years are as follows: 2024 $ 1,480.6 2025 400.0 2026 1,422.0 2027 1,480.6 2028 750.0 2029 and thereafter 2,112.1 Changes in long-term debt are as follows: 2023 2022 Balance at beginning of year $ 5,318.3 $ 5,380.1 Net change under revolving facility, net of financing costs 285.0 (209.6) Issuance of long-term debt, net of financing costs 2,092.5 — Foreign currency translation (97.3) 155.9 Amortization of financing costs 8.0 5.8 Change in fair value related to hedged interest rate risk 3.4 (13.9) Balance at end of year $ 7,609.9 $ 5,318.3 |
LEASE LIABILITIES
LEASE LIABILITIES | 12 Months Ended |
Dec. 31, 2023 | |
LEASE LIABILITIES | |
LEASE LIABILITIES | 16. LEASE LIABILITIES Changes in lease liabilities are as follows: Note 2023 2022 Balance at beginning of year $ 158.3 $ 153.8 Lease obligations financing right-of-use assets 56.9 45.3 Business acquisitions 7 226.2 — Repayments (94.8) (42.1) Other (0.5) 1.3 346.1 158.3 Less current portion (99.3) (37.3) $ 246.8 $ 121.0 Lease liabilities with affiliated corporations amounted to $20.1 million as of December 31, 2023 ($25.4 million in 2022). Interest rates on lease liabilities ranged from 1.9% to 8.5% as of December 31, 2023 and 2022. Repayments of lease liabilities over the coming years are as follows: 2024 $ 99.3 2025 80.3 2026 62.3 2027 44.4 2028 27.5 2029 and thereafter 32.3 |
OTHER LIABILITIES
OTHER LIABILITIES | 12 Months Ended |
Dec. 31, 2023 | |
OTHER LIABILITIES | |
OTHER LIABILITIES | 17. Note 2023 2022 Decommissioning obligation $ 143.5 $ 59.0 Defined benefit plans 26 19.0 20.6 Other 45.1 44.7 $ 207.6 $ 124.3 |
CAPITAL STOCK
CAPITAL STOCK | 12 Months Ended |
Dec. 31, 2023 | |
CAPITAL STOCK | |
CAPITAL STOCK | 18. (a) Authorized capital stock An unlimited number of common shares, without par value, voting and participating. An unlimited number of preferred shares, Series B Series C Series D Series E Series F An unlimited number of preferred shares, Series G, ranking prior to all other shares with regards to payment of dividends and repayment of capital, non-voting, non-participating carrying the rights and restrictions attached to the class as well as a fixed annual cumulative preferred dividend of 11.25%, retractable and redeemable. 18. CAPITAL STOCK (continued) (b) Issued and outstanding capital stock Common shares Number Amount Balance as of December 31, 2021 10,718,327 $ 295.6 Issuance of common shares 20,958 17.3 Balance as of December 31, 2022 and 2023 10,739,285 $ 312.9 In 2022, the Corporation issued 20,958 common shares with a value of $17.3 million as part of VMedia Inc. transfer from Quebecor Media (note 7). |
STOCK-BASED COMPENSATION PLANS
STOCK-BASED COMPENSATION PLANS | 12 Months Ended |
Dec. 31, 2023 | |
STOCK-BASED COMPENSATION PLANS | |
STOCK-BASED COMPENSATION PLANS | 19. (a) Ultimate parent corporation stock option plan Under a stock option plan established by the ultimate parent corporation, 26,000,000 Quebecor Inc. Class B Subordinate Voting Shares (“Quebecor Class B Shares”) have been set aside for directors, officers, senior employees, and other key employees of the ultimate parent corporation and those of the Corporation. The exercise price of each option is equal to the weighted average trading price of the Quebecor Class B Shares on the Toronto Stock Exchange over the last five trading days immediately preceding the granting of the option. Each option may be exercised during a period not exceeding 10 years from the date granted. As per the provisions of the plan, options usually vest as follows: 1/3 2/3 three years 33 1/3% The following table gives details on changes to outstanding options for the years ended December 31, 2023 and 2022: 2023 2022 Weighted Weighted average average Options exercise price Options exercise price Balance at beginning of year 1,048,934 $ 29.06 543,934 $ 30.58 Granted 1,845,000 32.71 650,000 27.85 Transferred — — 30,000 32.66 Exercised (8,733) 29.42 (16,666) 26.52 Cancelled (143,641) 30.58 (158,334) 30.27 Balance at end of year 2,741,560 $ 31.43 1,048,934 $ 29.06 Vested options at end of year 245,793 $ 29.61 125,397 $ 28.48 As of December 31, 2023, exercise prices of all outstanding options were from $26.52 to $34.28 and the average years to maturity was 8.7. 19. STOCK-BASED COMPENSATION PLANS (continued) (b) Assumptions in estimating the fair value of stock-based awards The fair value of stock-based awards under the stock option plan was estimated using the Black-Scholes option pricing model. The following weighted-average assumptions were used to estimate the fair value of all outstanding stock options under the ultimate parent corporation stock option plan: December 31, December 31, 2023 2022 Risk-free interest rate 3.38 % 3.60 % Distribution yield 3.81 % 3.97 % Expected volatility 22.73 % 22.07 % Expected remaining life 4.0 years 4.4 years The expected volatility is based on the historical volatility of the underlying share price for a period equivalent to the expected remaining life of the options. The expected remaining life of options granted represents the period of time that options granted are expected to be outstanding. The risk-free interest rate over the expected remaining life of the option is based on the Government of Canada yield curve in effect at the time of the valuation. Distribution yield is based on the current average yield. (c) Liability for vested options As of December 31, 2023, the liability for all vested options was $0.6 million as calculated using the intrinsic value ($0.3 million as of December 31, 2022). (d) Consolidated stock-based compensation charge For the year ended December 31, 2023, a $2.9 million charge was recorded related to all stock-based compensation plans (a $0.9 million charge in 2022 and a $1.8 million reversal of the charge in 2021). |
ACCUMULATED OTHER COMPREHENSIVE
ACCUMULATED OTHER COMPREHENSIVE LOSS ATTRIBUTABLE TO SHAREHOLDER | 12 Months Ended |
Dec. 31, 2023 | |
ACCUMULATED OTHER COMPREHENSIVE LOSS ATTRIBUTABLE TO SHAREHOLDER | |
ACCUMULATED OTHER COMPREHENSIVE LOSS ATTRIBUTABLE TO SHAREHOLDER | 20. Defined Cash flow hedges 1 benefit plans Total Balance as of December 31, 2020 $ 20.8 $ (126.5) $ (105.7) Other comprehensive income 5.6 79.3 84.9 Balance as of December 31, 2021 26.4 (47.2) (20.8) Other comprehensive (loss) income (52.7) 56.8 4.1 Balance as of December 31, 2022 (26.3) 9.6 (16.7) Other comprehensive income 5.6 4.7 10.3 Balance as of December 31, 2023 $ (20.7) $ 14.3 $ (6.4) 1 No significant amount is expected to be reclassified in income over the next 12 months in connection with derivatives designated as cash flow hedges. The balance is expected to reverse over a 5 1/2 -year period. |
COMMITMENTS
COMMITMENTS | 12 Months Ended |
Dec. 31, 2023 | |
COMMITMENTS | |
COMMITMENTS | 21. The Corporation has entered into long-term commitments to purchase services, tangible and intangible assets, and to pay licences and royalties. The minimum payments for the coming years are as follows: 2024 $ 769.9 2025 to 2028 1,404.8 2029 and thereafter 27.1 |
GUARANTEES
GUARANTEES | 12 Months Ended |
Dec. 31, 2023 | |
GUARANTEES | |
GUARANTEES | 22. In the normal course of business, the Corporation enters into numerous agreements containing guarantees, including the following: Business and asset disposals In the sale of all or part of a business or an asset, in addition to possible indemnification relating to failure to perform covenants and breach of representations or warranties, the Corporation may agree to indemnify against claims related to the past conduct of the business. Typically, the term and amount of such indemnification will be limited by the agreement. The nature of these indemnification agreements prevents the Corporation from estimating the maximum potential liability it could be required to pay to guaranteed parties. The Corporation has not accrued any amount in respect of these items on the consolidated balance sheets. Outsourcing companies and suppliers In the normal course of its operations, the Corporation enters into contractual agreements with outsourcing companies and suppliers. In some cases, the Corporation agrees to provide indemnifications in the event of legal procedures initiated against them. In other cases, the Corporation provides indemnification to counterparties for damages resulting from the outsourcing companies and suppliers. The nature of the indemnification agreements prevents the Corporation from estimating the maximum potential liability it could be required to pay. No amount has been accrued on the consolidated balance sheets with respect to these indemnifications. |
CONTINGENCIES
CONTINGENCIES | 12 Months Ended |
Dec. 31, 2023 | |
CONTINGENCIES | |
CONTINGENCIES | 23. CONTINGENCIES There are a number of legal proceedings against the Corporation that are pending. At this stage of proceedings, management of the Corporation does not expect the outcome to have a material adverse effect on the Corporation’s results or on its financial position. Generally, management of the Corporation establishes provisions for claims or actions considering the facts of each case. The Corporation cannot determine when and if any payment will be made related to these legal proceedings. |
FINANCIAL INSTRUMENTS AND FINAN
FINANCIAL INSTRUMENTS AND FINANCIAL RISK MANAGEMENT | 12 Months Ended |
Dec. 31, 2023 | |
FINANCIAL INSTRUMENTS AND FINANCIAL RISK MANAGEMENT | |
FINANCIAL INSTRUMENTS AND FINANCIAL RISK MANAGEMENT | 24. The Corporation’s financial risk-management policies have been established in order to identify and analyze the risks faced by the Corporation, to set appropriate risk limits and controls, and to monitor risks and adherence to limits. Risk-management policies are reviewed regularly to reflect changes in market conditions and in the Corporation’s activities. The Corporation uses a number of financial instruments, mainly cash and cash equivalents, restricted cash, trade receivables, contract assets, promissory note to the parent corporation, bank indebtedness, trade payables, accrued liabilities, long-term debt, lease liabilities and derivative financial instruments. As a result of its use of financial instruments, the Corporation is exposed to credit risk, liquidity risk and market risks relating to foreign exchange fluctuations and interest rate fluctuations. In order to manage its foreign exchange and interest rate risks, the Corporation uses derivative financial instruments (i) to set in CAN dollars future payments on debts denominated in U.S. dollars (interest and principal) and certain purchases of inventories and other capital expenditures denominated in a foreign currency and (ii) to achieve a targeted balance of fixed- and floating-rate debt. The Corporation does not intend to settle its derivative financial instruments prior to their maturity as none of these instruments is held or issued for speculative purposes. (a) Description of derivative financial instruments (i) Foreign exchange forward contracts CAN dollar average exchange rate per one U.S. Notional Notional Maturity dollar amount sold amount bought Less than 1 year 1.3430 $ 96.0 US$ 71.5 (ii) Interest rate swaps Maturity Notional amount Pay/receive Fixed rate Floating rate 2027 $ 700.0 Pay fixed/ receive floating 3.503 % 1‑month Bankers’ acceptance 24. FINANCIAL INSTRUMENTS AND FINANCIAL RISK MANAGEMENT (continued) (a) Description of derivative financial instruments (continued) (iii) Cross-currency swaps Hedged item Hedging instrument CAN dollar Annual interest exchange rate on rate on notional interest and Period Notional amount in capital payments covered amount CAN dollars per one U.S. dollar Secured term credit facility 1 month US$ 1,554.0 1-month 1.3514 Secured revolving credit facility 1 month US$ 134.0 1-month 1.3435 5.375% Senior Notes due 2024 2014 to 2024 US$ 158.6 3-months % 1.1034 5.375% Senior Notes due 2024 2017 to 2024 US$ 441.4 5.62 % 1.1039 5.125% Senior Notes due 2027 2017 to 2027 US$ 600.0 4.82 % 1.3407 3.625% Senior Notes due 2029 2021 to 2029 US$ 500.0 4.04 % 1.2109 Certain cross-currency swaps entered into by the Corporation include an option that allows each party to unwind the transaction on a specific date at the market value at that date. (b) Fair value of financial instruments In accordance with IFRS 13, Fair Value Measurement ● ● ● The fair value of long-term debt is estimated based on quoted market prices when available or on valuation models using Level 1 and Level 2 inputs. When the Corporation uses valuation models, the fair value is estimated based on discounted cash flows using year-end market yields or the market value of similar instruments with the same maturity. The fair value of derivative financial instruments recognized on the consolidated balance sheets is estimated as per the Corporation’s valuation models. These models project future cash flows and discount the future amounts to a present value using the contractual terms of the derivative financial instrument and factors observable in external market data, such as period-end swap rates and foreign exchange rates (Level 2 inputs). An adjustment is also included to reflect non-performance risk, impacted by the financial and economic environment prevailing at the date of the valuation, in the recognized measure of the fair value of the derivative financial instruments by applying a credit default premium, estimated using a combination of observable and unobservable inputs in the market (Level 3 inputs), to the net exposure of the counterparty or the Corporation. Derivative financial instruments are classified as Level 2. 24. FINANCIAL INSTRUMENTS AND FINANCIAL RISK MANAGEMENT (continued) (b) Fair value of financial instruments (continued) The carrying value and fair value of long-term debt and derivative financial instruments as of December 31, 2023 and 2022 are as follows: 2023 2022 Carrying Fair Carrying Fair Asset (liability) value value value value Long-term debt 1 $ (7,645.3) $ (7,368.1) $ (5,356.6) $ (4,800.7) Derivative financial instruments 2 Foreign exchange forward contracts (1.5) (1.5) 3.4 3.4 Interest rate swaps 5.4 5.4 — — Cross-currency swaps 106.9 106.9 196.1 196.1 1 The carrying value of long-term debt excludes changes in the fair value of long-term debt related to hedged interest rate risk and financing costs. 2 The net fair value of derivative financial instruments designated as cash flow hedges is an asset position of $78.0 million as of December 31, 2023 ( $165.5 million in 2022) and the net fair value of derivative financial instruments designated as fair value hedges is an asset position of $32.8 million as of December 31, 2023 ( $34.0 million in 2022). In 2022, the fair value of investments in preferred shares in a subsidiary of the parent corporation and loans from the parent corporation was equivalent to their initial issuance values (note 25) since these financial instruments have only been issued as part of transactions carried out for tax consolidation purposes of Quebecor Media Inc. and its subsidiaries. (c) Credit risk management Credit risk is the risk of financial loss to the Corporation if a customer or counterparty to a financial asset fails to meet its contractual obligations and arises principally from amounts receivable from customers, including contract assets. The gross carrying amounts of financial assets represent the maximum credit exposure. As of December 31, 2023, the gross carrying amount of trade receivables and contract assets, including their long-term portions, was $1,237.9 million ($742.3 million as of December 31, 2022). In the normal course of business, the Corporation continuously monitors the financial condition of its customers and reviews the credit history of each new customer. The Corporation uses its customers’ historical terms of payment and acceptable collection periods for each customer class, as well as changes in its customers’ credit profiles, to define default on amounts receivable from customers, including contract assets. As of December 31, 2023, no customer balance represented a significant portion of the Corporation’s consolidated trade receivables. The Corporation is using the expected credit losses method to estimate its provision for credit losses, which considers the specific credit risk of its customers, the expected lifetime of its financial assets, historical trends and economic conditions. As of December 31, 2023, the provision for expected credit losses represented 4.7% of the gross amount of trade receivables and contract assets (1.6% as of December 31, 2022), while 3.5% of trade receivables were 90 days past their billing date (2.8% as of December 31, 2022). 24. FINANCIAL INSTRUMENTS AND FINANCIAL RISK MANAGEMENT (continued) (c) Credit risk management (continued) The following table shows changes to the provision for expected credit losses for the years ended December 31, 2023 and 2022: Note 2023 2022 Balance at beginning of year $ 12.1 $ 14.4 Changes in expected credit losses charged to income 35.6 16.3 Business acquisitions 7 36.3 — Write-off (25.4) (18.6) Balance at end of year $ 58.6 $ 12.1 The Corporation believes that its product lines and the diversity of its customer base are instrumental in reducing its credit risk, as well as the impact of fluctuations in product-line demand. The Corporation does not believe that it is exposed to an unusual level of customer credit risk. As a result of its use of derivative financial instruments, the Corporation is exposed to the risk of non-performance by a third party. When the Corporation enters into derivative contracts, the counterparties (either foreign or Canadian) must have credit ratings at least in accordance with the Corporation’s risk-management policy and are subject to concentration limits. These credit ratings and concentration limits are monitored on an ongoing basis, but at least quarterly. (d) Liquidity risk management Liquidity risk is the risk that the Corporation will not be able to meet its contractual obligations as they fall due and the risk that its financial obligations will have to be met at excessive cost. Among other things, the Corporation manages this exposure through staggered debt maturities. The weighted average term of the Corporation’s consolidated debt was approximately 3.5 years as of December 31, 2023 (5.0 years as of December 31, 2022). The Corporation’s management believes that cash flows and available sources of financing should be sufficient to cover committed cash requirements for acquisition of property, plant and equipment and of intangible assets (including spectrum licences), working capital, interest payments, income tax payments, repayments of debt and lease liabilities, pension plan contributions, share repurchases, and dividend payments or distributions to the shareholder. The Corporation has access to cash flows generated by its subsidiaries through dividends (or distributions) and cash advances paid by its wholly owned subsidiaries. 24. FINANCIAL INSTRUMENTS AND FINANCIAL RISK MANAGEMENT (continued) (d) Liquidity risk management (continued) As of December 31, 2023, material contractual obligations related to financial instruments included capital repayment and interest on long-term debt and on lease liabilities and obligations related to derivative financial instruments, less estimated future receipts on derivative financial instruments. These obligations and their maturities are as follows: Less than 5 years Total 1 year 1-3 years 3-5 years or more Accounts payable and accrued charges $ 913.4 $ 913.4 $ — $ — $ — Amounts payable to affiliated corporations 91.0 91.0 — — — Long-term debt 1 7,645.3 1,480.6 1,822.0 2,230.6 2,112.1 Interest payments on long-term debt 2 1,171.3 308.7 517.2 237.3 108.1 Lease liabilities 346.1 99.3 142.6 71.9 32.3 Interest payments on lease liabilities 59.8 17.7 25.3 11.8 5.0 Derivative financial instruments 3 (134.6) (87.7) — 9.8 (56.7) Total $ 10,092.3 $ 2,823.0 $ 2,507.1 $ 2,561.4 $ 2,200.8 1 The carrying value of long-term debt excludes changes in the fair value of long-term debt related to hedged interest rate risk and financing costs. 2 Estimate of interest payable on long-term debt, based on interest rates, hedging of interest rates and hedging of foreign exchange rates as of December 31, 2023. 3 Estimated future receipts, net of future disbursements, on derivative financial instruments related to foreign exchange hedging on the principal of U.S.-dollar-denominated debt . (e) Market risk Market risk is the risk that changes in market prices due to foreign exchange rates, interest rates and/or equity prices will affect the value of the Corporation’s financial instruments. The objective of market risk management is to mitigate and control exposures within acceptable parameters while optimizing the return on risk. Foreign currency risk Most of the Corporation’s consolidated revenues, expenses and capital expenditures, other than interest expense on U.S. - dollar - denominated debt, purchases of set - top boxes, gateways, modems, mobile devices, the payment of royalties to certain business partners or service providers and certain costs related to the development and maintenance of its mobile networks, are received or paid in CAN dollars. A significant portion of the interest, principal and premium, if any, payable on its debt is payable in U.S. dollars. The Corporation has entered into transactions to hedge the foreign currency risk exposure on its U.S. - dollar - denominated debt obligations outstanding as of December 31, 2023, and to hedge its exposure on certain purchases. Accordingly, the Corporation’s sensitivity to variations in foreign exchange rates is economically limited. 24. FINANCIAL INSTRUMENTS AND FINANCIAL RISK MANAGEMENT (continued) (e) Market risk (continued) Foreign currency risk (continued) The estimated sensitivity on income and on other comprehensive income, before income taxes, of a variance of $0.10 in the year-end exchange rate of CAN dollars per one U.S. dollar used to calculate the fair value of financial instruments as of December 31, 2023 is as follows: Other comprehensive Increase (decrease) Income income Increase of $0.10 $ 0.2 $ 6.7 Decrease of $0.10 (0.2) (6.7) A variance of $0.10 in the 2023 average exchange rate of CAN dollars per one U.S. dollar would have resulted in a variance of $5.9 million on the value of unhedged purchases of goods and services and $5.8 million on the value of unhedged acquisitions of tangible and intangible assets in 2023. Interest rate risk Some of the Corporation’s bank credit facilities bear interest at floating rates based on the following reference rates: (i) Bankers’ acceptance rate, (ii) SOFR, (iii) Canadian prime rate, and (iv) U.S. prime rate. The Senior Notes issued by the Corporation bear interest at fixed rates. The Corporation has entered into cross-currency swap agreements in order to manage cash flow risk exposure. As of December 31, 2023, after taking into account the hedging instruments, long-term debt was comprised of 67.9% fixed-rate debt (95.1% in 2022) and 32.1% floating-rate debt (4.9% in 2022). The estimated sensitivity on interest payments, of a 100 basis-point variance in the year-end Canadian Bankers’ acceptance rate as of December 31, 2023 was $24.0 million. A variance of 100 basis - points in the discount rate used to calculate the fair value of financial instruments, as of December 31, 2023, would have an immaterial impact on other comprehensive income and no impact on income. 24. FINANCIAL INSTRUMENTS AND FINANCIAL RISK MANAGEMENT (continued) (f) Capital management The Corporation’s primary objective in managing capital is to maintain an optimal capital base in order to support the capital requirements of its various businesses, including growth opportunities. In managing its capital structure, the Corporation takes into account the asset characteristics of its subsidiaries and planned requirements for funds, leveraging their individual borrowing capacities in the most efficient manner to achieve the lowest cost of financing. Management of the capital structure involves the issuance and repayment of debt, the issuance and repurchase of shares, the use of cash flows generated by operations, and the level of distributions to the shareholder. The Corporation has not significantly changed its strategy regarding the management of its capital structure since the last financial year. The Corporation’s capital structure is composed of equity, bank indebtedness, long-term debt, lease liabilities, derivative financial instruments, cash and cash equivalents and promissory note to the parent corporation. The capital structure as of December 31, 2023 and 2022 is as follows: 2023 2022 Bank indebtedness $ — $ 0.4 Long-term debt 7,609.9 5,318.3 Lease liabilities 346.1 158.3 Derivative financial instruments (110.8) (199.5) Cash and cash equivalents (8.0) (1.8) Promissory note to the parent corporation (996.0) (160.0) Net liabilities 6,841.2 5,115.7 Equity $ 155.9 $ (230.8) The Corporation is not subject to any externally imposed capital requirements other than certain restrictions under the terms of its borrowing agreements, which relate, among other things, to permitted investments, inter-corporation transactions, and the declaration and payment of dividends or other distributions. |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 12 Months Ended |
Dec. 31, 2023 | |
RELATED PARTY TRANSACTIONS | |
RELATED PARTY TRANSACTIONS | 25. Compensation of key management personnel Key management personnel comprises members of the Board of Directors and key senior managers of the Corporation and its main subsidiaries. Their compensation is as follows: 2023 2022 2021 Salaries and short-term benefits $ 2.0 $ 2.7 $ 3.2 Share-based compensation 1.5 0.5 (1.3) Termination and other long-term benefits 0.1 0.6 0.9 $ 3.6 $ 3.8 $ 2.8 25. RELATED PARTY TRANSACTIONS (continued) Operating transactions During the years ended December 31, 2023, 2022 and 2021, the Corporation incurred expenses with affiliated corporations, which are included in purchase of goods and services, and acquired property, plant and equipment and intangible assets from affiliated corporations. The Corporation also made sales to affiliated corporations. These transactions were accounted for at the consideration agreed between parties. 2023 2022 2021 Ultimate parent and parent corporation Revenues $ 0.4 $ 0.4 $ 0.4 Purchase of goods and services 2.6 10.2 10.2 Operating expenses recovered (1.8) (2.0) (2.3) Corporations under common control Revenues 4.1 4.7 5.3 Purchase of goods and services 147.5 112.3 109.7 Operating expenses recovered 0.2 (0.7) 0.4 Other affiliated corporations Purchase of goods and services 30.5 21.9 10.6 Acquisition of property, plant and equipment and intangible assets 11.0 8.6 4.6 Management arrangements The Corporation pays annual management fees to the parent corporation for services rendered to the Corporation, including internal audit, legal and corporate, financial planning and treasury, tax, real estate, human resources, risk management, public relations and other services. Management fees amounted to $33.4 million in 2023 ($27.2 million in 2022 and $40.5 million in 2021). In addition, the parent corporation is entitled to the reimbursement of out-of-pocket expenses incurred in connection with the services provided under the agreement. These transactions were accounted for at the consideration agreed between the parties. Accounts receivable from affiliated corporations 2023 2022 Ultimate parent and parent corporation Accounts receivable $ 3.5 $ 2.4 Dividends receivable — 5.0 Interest receivable 14.5 2.6 Corporations under common control Accounts receivable 7.1 3.6 $ 25.1 $ 13.6 25. RELATED PARTY TRANSACTIONS (continued) Accounts payable to affiliated corporations 2023 2022 Ultimate parent and parent corporation Accounts payable $ 36.8 $ 55.4 Interest payable — 5.0 Corporations under common control Accounts payable 54.2 35.1 $ 91.0 $ 95.5 Promissory notes receivable The Corporation has a $160.0 million and a $836.0 million promissory note receivable from Quebecor Media bearing interest at 4.90% and 7.00% , respectively. These promissory notes are repayable on demand. Tax consolidation transactions 2023 2022 Investment in an affiliated corporation 1 $ — $ 1,595.0 Subordinated loan from the parent corporation 2 — (1,595.0) 1 Investment in 1,595,000 preferred shares, Series C, of 9346-9963 Quebec Inc., a subsidiary of Quebecor Media Inc., carrying the right to receive an annual dividend of 9.6% , payable semi-annually. 2 Subordinated loan of $1,595.0 million from Quebecor Media Inc., bearing interest at a rate of 9.5 %, payable semi-annually. On October 1, 2021, the Corporation contracted a subordinated loan of $1,473.0 million from Quebecor Media inc, bearing interest at a rate of 8.5%, payable semi-annually, and maturing on October 1, 2051. On the same day, the Corporation invested the total proceeds of $1,473.0 million into 1,473,000 preferred shares, Series M, of 9346-9963 Quebec Inc. These shares carry the right to receive an annual dividend of 8.6%, payable semi-annually. On December 10, 2021, 9346-9963 Quebec Inc. redeemed 1,473,000 preferred shares, Series M for a total cash consideration of $1,473.0 million. On the same day, the Corporation used the total proceeds of $1,473.0 million to repay its subordinated loans contracted from Quebecor Media Inc. On October 17, 2022, the Corporation contracted a subordinated loan of $2,113.0 million from Quebecor Media inc, bearing interest at a rate of 10.5%, payable semi-annually, and maturing on October 17, 2052. On the same day, the Corporation invested the total proceeds of $2,113.0 million into 2,113,000 preferred shares, Series N, of 9346-9963 Quebec Inc. These shares carry the right to receive an annual dividend of 10.6%, payable semi-annually. On December 7, 2022, 9346-9963 Quebec Inc. redeemed 2,113,000 preferred shares, Series N for a total cash consideration of $2,113.0 million. On the same day, the Corporation used the total proceeds of $2,113.0 million to repay its subordinated loan contracted from Quebecor Media Inc. On November 1, 2023, 9346-9963 Quebec Inc. redeemed 1,595,000 preferred shares, Series C for a total cash consideration of $1,595.0 million. On the same day, the Corporation used the total proceeds of $1,595.0 million to repay its subordinated loan contracted from Quebecor Media Inc. All these transactions were carried out for tax consolidation purposes of Quebecor Media Inc. and its subsidiaries. |
PENSION PLANS AND POSTRETIREMEN
PENSION PLANS AND POSTRETIREMENT BENEFITS | 12 Months Ended |
Dec. 31, 2023 | |
PENSION PLANS AND POSTRETIREMENT BENEFITS | |
PENSION PLANS AND POSTRETIREMENT BENEFITS | 26. The Corporation maintains various defined benefit and defined contribution plans. The Corporation also provides postretirement benefits to eligible retired employees. The Corporation’s pension plans are registered with a provincial or federal regulatory authority. The Corporation’s funding policy for its funded pension plans is to maintain its contribution at a level sufficient to cover benefits and to meet the requirements of the applicable regulations and plan provisions that govern the funding of the plans. These provisions establish, among others, the future amortization payments when the funding ratio of the pension plans is insufficient as defined by the relevant provincial and federal laws. Payments are determined by an actuarial report performed by an independent company at least every three years or annually, according to the applicable laws and in accordance with plan provisions. By their design, the defined benefit plans expose the Corporation to the typical risks faced by defined benefit plans, such as investment performance, changes to the discount rates used to value the obligation, longevity of plan participants, and future inflation. The administration of the plans is assured by pension committees composed of members of the plans, members of the Corporation’s management and independent members or by the Corporation, in accordance with the provisions of each plan. Under the Corporation’s rules of governance, the approval and oversight of the defined benefit plan policies are performed at different levels through the pension committees, the Corporation’s management, or the Audit and Risk Management Committee. The risk management of pension plans is also performed under the leadership of these committees at various levels. The custody of securities and management of security transactions are assigned to trustees within a mandate given by the pension committee or the Corporation, as the case may be. Policies include those on investment objectives, risk-mitigation strategies and the mandate to hire investment fund managers and monitor their work and performance. The defined benefit pension plans are monitored on an ongoing basis to assess the benefit, funding and investment policies, financial status, and the Corporation’s funding requirement. 26. PENSION PLANS AND POSTRETIREMENT BENEFITS (continued) The following tables show a reconciliation of the changes in the plans’ benefit obligations and the fair value of plan assets for the years ended December 31, 2023 and 2022: Pension benefits Postretirement benefits 2023 2022 2023 2022 Change in benefit obligations Benefit obligations at the beginning of the year $ 454.6 $ 659.0 $ 17.0 $ 38.9 Service costs 10.2 22.7 0.4 0.9 Interest costs 23.5 17.4 0.9 1.0 Plan participants’ contributions 5.0 4.7 — — Actuarial loss (gain) arising from: Financial assumptions 38.4 (215.2) 1.5 (12.6) Demographic assumptions — — — (2.4) Participant experience 3.1 3.5 — (6.2) Benefits and settlements paid (15.7) (37.5) (0.8) (0.7) Plan amendments and other — — — (1.9) Benefit obligations at the end of the year $ 519.1 $ 454.6 $ 19.0 $ 17.0 Pension benefits Postretirement benefits 2023 2022 2023 2022 Change in plan assets Fair value of plan assets at the beginning of the year $ 527.6 $ 607.7 $ — $ — Actual return on plan assets 54.1 (69.3) — — Employer contributions 1.7 22.7 0.8 0.7 Plan participants’ contributions 5.0 4.7 — — Benefits and settlements paid (15.7) (37.5) (0.8) (0.7) Administrative fees (0.7) (0.7) — — Fair value of plan assets at the end of the year $ 572.0 $ 527.6 $ — $ — As of December 31, 2023, the weighted average duration of defined benefit obligations was 16.1 years (16.0 years in 2022). The Corporation expects future benefit payments of $24.8 million in 2024. The investment strategy for plan assets takes into account a number of factors, including the time horizon of the pension plans’ obligations and the investment risk. For each of the plans, an allocation range by asset class is developed whereby a mix of asset classes is used to optimize the risk-return profile of plan assets and to mitigate asset-liability mismatch. Plan assets are comprised of: 2023 2022 Equity securities: Canadian 19.1 % 18.3 % Foreign 26.8 26.2 Debt securities 37.0 36.4 Other 17.1 19.1 100.0 % 100.0 % The fair value of securities is based on quoted prices in an active market, while the fair value of other investments is not based on quoted prices in an active market. 26. PENSION PLANS AND POSTRETIREMENT BENEFITS (continued) Where funded plans have a net defined benefit asset, the Corporation determines if potential reductions in future contributions are permitted by applicable regulations and by collective bargaining agreements. When a defined benefit asset is created, it cannot exceed the future economic benefit that the Corporation can expect to obtain from the asset. The future economic benefit represents the value of reductions in future contributions and expenses payable to the pension fund. It does not reflect gains that could be generated in the future that would allow reductions in contributions by the Corporation. When there is a minimum funding requirement, this could also limit the amounts recognized on the balance sheet. A minimum funding requirement represents the present value of amortization payments based on the most recent actuarial financing reports filed. The reconciliation of funded status to the net amount recognized on the consolidated balance sheets is as follows: Pension benefits Postretirement benefits 2023 2022 2023 2022 Benefit obligations $ (519.1) $ (454.6) $ (19.0) $ (17.0) Fair value of plan assets 572.0 527.6 — — Plan surplus (deficit) 52.9 73.0 (19.0) (17.0) Asset limit and minimum funding adjustment (52.1) (70.7) — — Net amount recognized 1 $ 0.8 $ 2.3 $ (19.0) $ (17.0) 1 The net liability recognized for 2023 is $18.2 million ( $14.7 million in 2022), of which an amount of $19.0 million ( $20.6 million in 2022) is included in “Other liabilities” and $0.8 million ( $5.9 million in 2022) is included in “Other assets”. Components of re-measurements are as follows: Pension benefits Postretirement benefits 2023 2022 2021 2023 2022 2021 Actuarial (loss) gain on benefit obligations $ (41.5) $ 211.7 $ 60.0 $ (1.5) $ 21.2 $ 5.5 Actual return on plan assets, less interest income anticipated in the interest on the net defined benefit liability calculation 27.1 (84.9) 42.4 — — — Asset limit and minimum funding adjustment 22.3 (70.7) — — — — Re-measurement gain (loss) recorded in other comprehensive income $ 7.9 $ 56.1 $ 102.4 $ (1.5) $ 21.2 $ 5.5 Components of the net benefit costs are as follows: Pension benefits Postretirement benefits 2023 2022 2021 2023 2022 2021 Employee costs: Service costs $ 10.2 $ 22.7 $ 27.0 $ 0.4 $ 0.9 $ 1.7 Plan amendments, administrative fees and other 0.7 0.6 0.5 — (2.0) (3.8) Interest on net defined benefit liability 0.1 2.0 4.2 0.9 1.1 1.2 Net benefit costs (gain) $ 11.0 $ 25.3 $ 31.7 $ 1.3 $ — $ (0.9) The expense related to defined contribution pension plans amounted to $16.3 million in 2023 ($16.3 million in 2022 and $17.6 million in 2021). The expected employer contributions to the Corporation’s defined benefit pension plans and postretirement benefit plans will be $0.5 million in 2024, based on the most recent financial actuarial reports filed (contributions of $2.5 million were paid in 2023). 26. PENSION PLANS AND POSTRETIREMENT BENEFITS (continued) Assumptions The Corporation determines its assumption for the discount rate to be used for the purposes of computing annual service and interest costs based on an index of high-quality corporate bond-yields and matched-funding yield curve analysis as of the measurement date. The actuarial assumptions used in measuring the Corporation’s benefit obligations as of December 31, 2023, 2022 and 2021 and current periodic benefit costs are as follows: Pension and postretirement benefits 2023 2022 2021 Benefit obligations Rates as of year-end: Discount rate 4.60 % 5.10 % 3.00 % Rate of compensation increase 3.00 3.00 3.00 Current periodic costs Rates as of preceding year-end: Discount rate 5.10 % 3.00 % 2.50 % Rate of compensation increase 3.00 3.00 3.00 The assumed average retirement age of participants used was 62 years in 2023, 2022 and 2021. The assumed health care cost trend rate used in measuring the accumulated postretirement benefit obligations was 5.90% at the end of 2023. These costs, as per the estimate, are expected to decrease gradually over the next 15 years to 4.20% and to remain at that level thereafter. Sensitivity analysis An increase of 10 basis points in the discount rate would have decreased the pension benefit obligation by $7.6 million and the postretirement benefit obligation by $0.3 million as of December 31, 2023. There are limitations to this sensitivity analysis since it only considers the impacts of an increase of 10 basis points in the discount rate assumption without changing any other assumptions. No sensitivity analysis was performed on other assumptions as a similar change to those assumptions would not have a significant impact on the consolidated financial statements. |
SUBSEQUENT EVENT
SUBSEQUENT EVENT | 12 Months Ended |
Dec. 31, 2023 | |
SUBSEQUENT EVENT | |
SUBSEQUENT EVENT | 27. Videotron announced a $298.9 million investment to acquire 305 blocks of spectrum in the 3800 MHz band across the country following the conclusion of the latest spectrum auction that ended on November 30, 2023. Approximately 61% of the 305 blocks of wireless spectrum are located outside Québec, mainly in southern Ontario, Alberta and British Columbia. Videotron made an initial deposit of $59.8 million on January 17, 2024 and the balance of $239.1 million will be paid in May 2024. |
SUMMARY OF MATERIAL ACCOUNTIN_2
SUMMARY OF MATERIAL ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2023 | |
SUMMARY OF MATERIAL ACCOUNTING POLICIES | |
Basis of presentation | (a) Basis of presentation The consolidated financial statements have been prepared in accordance with International Financial Reporting Standards (“IFRS”) as issued by the International Accounting Standards Board (IASB). These consolidated financial statements have been prepared on a historical cost basis, except for certain financial instruments (note 1(i)), the liability related to stock-based compensation (note 1(s)) and the net defined benefit liability (note 1(t)), and they are presented in Canadian dollars (“CAN dollars”), which is the currency of the primary economic environment in which the Corporation operates (“functional currency”). Comparative figures for the years ended December 31, 2022 and 2021 have been restated to conform to the presentation adopted for the year ended December 31, 2023. |
Consolidation | (b) Consolidation The consolidated financial statements include the accounts of the Corporation and its subsidiaries. Intercompany transactions and balances are eliminated on consolidation. A subsidiary is an entity controlled by the Corporation. Control is achieved when the Corporation is exposed, or has rights, to variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity. Non-controlling interests in the net assets and results of consolidated subsidiaries are identified separately from the parent corporation’s ownership interest. Non-controlling interests in the equity of a subsidiary consist of the amount of non-controlling interests calculated at the date of the original business combination and their share of changes in equity since that date. Changes in non-controlling interests in a subsidiary that do not result in a loss of control by the Corporation are accounted for as equity transactions. |
Business acquisition | (c) Business acquisition A business acquisition is accounted for by the acquisition method. The cost of an acquisition is measured at the fair value of the consideration given in exchange for control of the business acquired at the acquisition date. This consideration can be comprised of cash, assets transferred, financial instruments issued, or future contingent payments. The identifiable assets and liabilities of the acquired business are recognized at their fair value at the acquisition date. Results of operations of an acquired business are included in the Corporation’s consolidated financial statements from the date of the business acquisition. Business acquisition and integration costs are expensed as incurred and included as acquisition costs in the consolidated statements of income. |
Foreign currency translation | (d) Foreign currency translation Foreign currency transactions are translated to the functional currency by applying the exchange rate prevailing at the date of the transaction. Translation gains and losses on monetary assets and liabilities denominated in a foreign currency are included in financial expenses, or in gain or loss on valuation and translation of financial instruments. |
Revenue recognition | (e) Revenue recognition The Corporation accounts for a contract with a customer only when all of the following criteria are met: ● the parties to the contract have approved the contract (in writing, orally or in accordance with other customary business practices) and are committed to perform their respective obligations; ● the entity can identify each party’s rights regarding the goods or services to be transferred; ● the entity can identify the payment terms for the goods or services to be transferred; ● the contract has commercial substance (i.e. the risk, timing or amount of the entity’s future cash flows is expected to change as a result of the contract); and ● it is probable that the entity will collect the consideration to which it is entitled in exchange for the goods or services to be transferred to the customer. The portion of revenues that is invoiced and unearned is presented as “Deferred revenue” on the consolidated balance sheets. Deferred revenue is usually recognized as revenue in the subsequent year. The Corporation provides services under multiple deliverable arrangements, mainly for mobile contracts in which the sale of mobile devices is bundled with telecommunication services over the contract term. The total consideration from a contract with multiple deliverables is allocated to all performance obligations in the contract based on the stand-alone selling price of each obligation. The total consideration can be comprised of an upfront fee or a number of monthly installments for the equipment sale and a monthly fee for the telecommunication service. Each performance obligation of multiple deliverable arrangements is then separately accounted for based on its allocated consideration amount. The Corporation does not adjust the amount of consideration allocated to the equipment sale for the effects of a financing component since this component is not significant. The Corporation recognizes each of its main activities’ revenues as follows: ● operating revenues from subscriber services, such as television distribution, Internet access, wireline and mobile telephony, and OTT video services are recognized when services are provided; ● revenues from equipment sales to subscribers are recognized when the equipment is delivered; ● operating revenues related to service contracts are recognized in income on a straight-line basis over the period in which the services are provided; and 1. SUMMARY OF MATERIAL ACCOUNTING POLICIES (continued) (e) Revenue recognition (continued) ● wireline connection and mobile activation revenues are deferred and recognized respectively as revenues over the period of time the customer is expected to remain a customer of the Corporation and over the contract term. When a mobile device and a service are bundled under a single mobile contract, the term of the contract is generally 24 months. The portion of mobile revenues earned without being invoiced is presented as contract assets on the consolidated balance sheets. Contract assets are realized over the term of the contract. |
Impairment of assets | (f) Impairment of assets For the purposes of assessing impairment, assets are grouped in cash-generating units (“CGUs”), which represent the lowest levels for which there are separately identifiable cash inflows generated by those assets. The Corporation reviews, at each balance sheet date, whether events or circumstances have occurred to indicate that the carrying amounts of its long-lived assets with finite useful lives may be less than their recoverable amounts. Goodwill, intangible assets having an indefinite useful life, and intangible assets not yet available for use are tested for impairment each financial year, as well as whenever there is an indication that the carrying amount of the asset, or the CGU to which an asset has been allocated, exceeds its recoverable amount. The recoverable amount is the higher of the fair value less costs of disposal and the value in use of the asset or the CGU. Fair value less costs of disposal represents the amount an entity could obtain at the valuation date from the asset’s disposal in an arm’s length transaction between knowledgeable, willing parties, after deducting the costs of disposal. The value in use represents the present value of the future cash flows expected to be derived from the asset or the CGU. An impairment loss is recognized in the amount by which the carrying amount of an asset or a CGU exceeds its recoverable amount. When the recoverable amount of a CGU to which goodwill has been allocated is lower than the CGU’s carrying amount, the related goodwill is first impaired. Any excess amount of impairment is recognized and attributed to assets in the CGU, prorated to the carrying amount of each asset in the CGU. An impairment loss recognized in prior periods for long-lived assets with finite useful lives and intangible assets having an indefinite useful life, other than goodwill, can be reversed through the consolidated statement of income to the extent that the resulting carrying value does not exceed the carrying value that would have been the result had no impairment loss been recognized previously. |
Income taxes | (g) Income taxes Current income taxes are recognized with respect to amounts expected to be paid or recovered under the tax rates and laws that have been enacted or substantively enacted at the balance sheet date. Deferred income taxes are accounted for using the liability method. Under this method, deferred income tax assets and liabilities are recognized for the estimated future tax consequences attributable to differences between the carrying amounts of existing assets and liabilities in the consolidated financial statements and their respective tax bases. Deferred income tax assets and liabilities are measured using enacted or substantively enacted tax rates in effect for the year in which those temporary differences are expected to be recovered or settled. The effect of a change in tax rates on deferred income tax assets and liabilities is recognized in income in the period that includes the substantive enactment date. A deferred tax asset is recognized initially when it is probable that future taxable income will be sufficient to use the related tax benefits and may be reduced subsequently, if necessary, to an amount that is more likely than not to be realized. A deferred tax expense or benefit is recognized either in other comprehensive income or directly in equity to the extent that it relates to items that are recognized in other comprehensive income or directly in equity in the same or a different period. In the course of the Corporation’s operations, there are a number of uncertain tax positions due to the complexity of certain transactions and to the fact that related tax interpretations and legislation are continually changing. When a tax position is uncertain, the Corporation recognizes an income tax benefit or reduces an income tax liability only when it is probable that the tax benefit will be realized in the future or when the income tax liability is no longer probable. |
Leases | (h) Leases The Corporation recognizes, for most of its leases, a right-of-use asset and a lease liability at the commencement of a lease. The right-of-use asset and the lease liability are initially measured at the present value of lease payments over the lease term, less incentive payments received, using the Corporation’s incremental borrowing rate at that date or the interest rate implicit in the lease. The term of the lease is comprised of the initial lease term and any additional period for which it is reasonably certain that the Corporation will exercise its extension option. Right-of-use assets are depreciated over the shorter of the lease term or the useful life of the underlying asset. Interest on lease liabilities is recorded in the consolidated statements of income as financial expenses and principal payments on the lease liability are presented as part of financing activities in the consolidated statements of cash flows. |
Financial instruments | (i) Financial instruments Classification, recognition and measurement Most financial assets and liabilities are classified as subsequently measured at amortized cost, except for derivative financial instruments, investments in preferred shares of an affiliated corporation and loans from/to the parent corporation, which are measured at fair value through other comprehensive income or through profit or loss. Contingent consideration and future conditional adjustments arising from a business acquisition or disposal are measured at fair value at the transaction date with subsequent changes in fair value recorded in the consolidated statements of income. 1. SUMMARY OF MATERIAL ACCOUNTING POLICIES (continued) (i) Financial instruments (continued) Derivative financial instruments and hedge accounting The Corporation uses various derivative financial instruments to manage its exposure to fluctuations in foreign currency exchange rates and interest rates. The Corporation does not hold or use any derivative financial instruments for speculative purposes. Under hedge accounting, the Corporation documents all hedging relationships between hedging instruments and hedged items, as well as its strategy for using hedges and its risk-management objective. It also designates its derivative financial instruments as either fair value hedges or cash flow hedges when they qualify for hedge accounting. The Corporation assesses the effectiveness of its hedging relationships at initiation and on an ongoing basis. The Corporation generally enters into the following types of derivative financial instruments: ● The Corporation uses foreign exchange forward contracts to hedge foreign currency rate exposure on anticipated equipment or inventory purchases in a foreign currency. These foreign exchange forward contracts are designated as cash flow hedges. ● The Corporation uses cross-currency swaps to hedge (i) foreign currency rate exposure on interest and principal payments on foreign-currency-denominated debt and/or (ii) fair value exposure on certain debt resulting from changes in interest rates. The cross-currency swaps that set all future interest and principal payments on U.S.-dollar-denominated debt in fixed CAN dollars, in addition to converting an interest rate from a floating rate to a floating rate or from a fixed rate to a fixed rate, are designated as cash flow hedges. The cross-currency swaps are designated as fair value hedges when they set all future interest and principal payments on U.S.-dollar-denominated debt in fixed CAN dollars, in addition to converting the interest rate from a fixed rate to a floating rate. ● The Corporation uses interest rate swaps to manage fair value exposure on certain debts resulting from changes in interest rates. These swap agreements require a periodic exchange of payments without the exchange of the notional principal amount on which the payments are based. These interest rate swaps are designated as fair value hedges when they convert the interest rate from a fixed rate to a floating rate, or as cash flow hedges when they convert the interest rate from a floating rate to a fixed rate. ● The Corporation has established a hedge ratio of one for one for all its hedging relationships as the underlying risks of its hedging derivatives are identical to the hedged item risks. The Corporation measures and records the effectiveness of its hedging relationships as follows: ● For cash flow hedges, the hedge effectiveness is tested and measured by comparing changes in the fair value of the hedging derivative with the changes in the fair value of a hypothetical derivative that simulates the cash flows of the hedged item. ● For fair value hedges, the hedge effectiveness is tested and measured by comparing changes in the fair value of the hedging derivative with the changes in the fair value of the hedged item attributable to the hedged risk. ● Most of the Corporation’s hedging relationships are not generating material ineffectiveness. The ineffectiveness, if any, is recorded in the consolidated statements of income as a gain or loss on valuation and translation of financial instruments. 1. SUMMARY OF MATERIAL ACCOUNTING POLICIES (continued) (i) Financial instruments (continued) Derivative financial instruments and hedge accounting (continued) Under hedge accounting, the Corporation applies the following accounting policies: ● For derivative financial instruments designated as fair value hedges, changes in the fair value of the hedging derivative recorded in income are substantially offset by changes in the fair value of the hedged item to the extent that the hedging relationship is effective. When a fair value hedge is discontinued, the carrying value of the hedged item is no longer adjusted and the cumulative fair value adjustments to the carrying value of the hedged item are amortized to income over the remaining term of the original hedging relationship. ● For derivative financial instruments designated as cash flow hedges, the effective portion of a hedge is reported in other comprehensive income until it is recognized in income during the same period in which the hedged item affects income, while the ineffective portion is immediately recognized in income. When a cash flow hedge is discontinued, the amounts previously recognized in accumulated other comprehensive income are reclassified to income when the variability in the cash flows of the hedged item affects income. Any change in the fair value of derivative financial instruments recorded in income is included in gain or loss on valuation and translation of financial instruments. Interest expense on hedged long-term debt is reported at the hedged interest and foreign currency rates. Derivative financial instruments that do not qualify for hedge accounting, including derivatives that are embedded in financial or non-financial contracts that are not closely related to the host contracts, are reported on a fair value basis on the consolidated balance sheets. Any change in the fair value of these derivative financial instruments is recorded in the consolidated statements of income as a gain or loss on valuation and translation of financial instruments. |
Financing costs | (j) Financing costs Financing costs related to long-term debt are capitalized in reduction of long-term debt and amortized using the effective interest rate method. |
Tax credits, government assistance and deferred subsidies | (k) Tax credits, government assistance and deferred subsidies The Corporation receives tax credits mainly related to its research and development activities and has access to several government programs designed to support large investment projects and the roll-out of high-speed Internet services in various regions of Québec. Government financial assistance is accounted for as revenue or as a reduction in related costs, whether capitalized and amortized or expensed, in the year the costs are incurred and when management has reasonable assurance that the conditions of the government programs are being met. In particular, when government assistance is received in advance, as it was for the program to support the roll-out of high-speed Internet services in various regions of Québec ($216.2 million received in March 2021), the amount received is recorded as deferred subsidies on the consolidated balance sheets. When the investments required under the program are realized, the corresponding subsidies are recognized as a reduction in additions to property, plant and equipment. No amount was deferred as of December 31, 2023 since all investments under this program have been incurred (a balance of $39.3 million as of December 31, 2022). |
Cash and cash equivalents | (l) Cash and cash equivalents Cash and cash equivalents include highly liquid investments purchased three months or less from maturity and are recorded at fair value. These highly liquid investments consist mainly of Bankers’ acceptances and term deposits. |
Trade receivables and contract assets | (m) Trade receivables and contract assets Trade receivables and contract assets are presented net of a provision for expected credit losses. The Corporation is using the IFRS 9 expected credit losses method to estimate that provision, which considers the specific credit risk of its customers, the expected lifetime of its financial assets, historical trends and economic conditions. Amounts receivable are written off when deemed uncollectible. |
Inventories | (n) Inventories Inventories are valued at the lower of cost, determined by the first-in, first-out method or the weighted-average cost method, and net realizable value. Net realizable value represents the estimated selling price in the ordinary course of business, less the estimated costs of completion and the estimated costs necessary to make the sale. When the circumstances that previously caused inventories to be written down below cost no longer exist, the amount of the write-down is reversed. Inventories related to audiovisual content comprise broadcast rights, which are essentially contractual rights allowing the limited or unlimited broadcast of televisual products or movies. The Corporation records the rights acquired as inventory and the obligations incurred under a licence agreement as a liability when the contractual broadcast period begins and the contractual conditions of the licence are met. Audiovisual content costs are amortized to operating expenses on a straight-line basis over the contractual broadcasting period or a period not exceeding 3 years beginning at the moment that the content is made available on the Corporation’s OTT video services platforms. The net realizable value of inventories related to audiovisual content is examined periodically by management and revised as necessary. The carrying value of the related inventories is reduced to the net realizable value, if necessary, based on this assessment. |
Property, plant and equipment | (o) Property, plant and equipment Property, plant and equipment are recorded at cost. Cost represents the acquisition costs, net of government subsidies and investment tax credits, or construction costs, including preparation, installation and testing costs. In the case of projects to construct wireline and mobile networks, the cost includes equipment, direct labour and related overhead costs. Projects under development may also be comprised of advance payments made to suppliers for equipment under construction. Borrowing costs are also included in the cost of property, plant and equipment during the development phase. Expenditures, such as maintenance and repairs, are expensed as incurred. Depreciation is calculated on a straight-line basis over the following estimated useful lives: Assets Estimated useful lives Buildings and leasehold improvements 5 to 40 years Furniture and equipment 3 to 7 years Telecommunication networks 3 to 20 years 1. SUMMARY OF MATERIAL ACCOUNTING POLICIES (continued) (o) Property, plant and equipment (continued) Depreciation methods, residual values, and the useful lives of significant property, plant and equipment are reviewed at least once a year. Any change is accounted for prospectively as a change in accounting estimate. Leasehold improvements are depreciated over the shorter of the term of the lease and their estimated useful life. A decommissioning obligation in connection with the Corporation’s mobile network is recorded at the net present value of the estimated future expenditures required to settle the estimated future obligation at the consolidated balance sheet date. Changes in estimates of the decommissioning obligation are reflected in property, plant and equipment on the consolidated balance sheets. The Corporation does not record any decommissioning obligations in connection with its wireline distribution networks. The Corporation expects to renew all of its agreements with utility companies to access their support structures in the future, making the retirement date so far into the future that the present value of the restoration costs is insignificant for those assets. The Corporation is engaged in an agreement to operate a shared LTE network in the Province of Québec and in the Ottawa area. |
Goodwill and intangible assets | (p) Goodwill and intangible assets Goodwill Goodwill initially arising from a business acquisition is measured and recognized as the excess of the fair value of the consideration paid over the fair value of the recognized identifiable assets acquired and liabilities assumed. Goodwill is allocated as at the date of a business acquisition to a CGU for purposes of impairment testing (note 1(f)). The allocation is made to the CGU or group of CGUs expected to benefit from the synergies of the business acquisition. Intangible assets Spectrum licences are recorded at cost. Spectrum licences have an indefinite useful life and are not amortized, in view of the following facts: (i) the Corporation intends to renew the spectrum licences and believes that they are likely to be renewed by Innovation, Science and Economic Development Canada (“ISED Canada”); (ii) the Corporation has the financial and operational ability to renew these spectrum licences; (iii) currently, the competitive, legal and regulatory landscape does not limit the useful lives of the spectrum licences; and (iv) the Corporation foresees no limit to the period during which these licences can be expected to generate cash flows in the future. Software is recorded at cost. In particular, internally generated intangible assets such as software and website development are mainly comprised of internal costs in connection with the development of assets to be used internally or to provide services to customers. These costs are capitalized when the development stage of the software application begins and costs incurred prior to that stage are recognized as expenses. Customer relationships, brand names and other intangible assets acquired through a business acquisition are recorded at fair value at the date of acquisition. Brand names have an indefinite useful life as long as they are expected to generate cash flows in the future and the Corporation intends to use them. 1. SUMMARY OF MATERIAL ACCOUNTING POLICIES (continued) (p) Goodwill and intangible assets (continued) Intangible assets (continued) Borrowing costs directly attributable to the acquisition, development or production of an intangible asset are also included as part of the cost of that asset during the development phase. Intangible assets with finite useful lives are amortized over their useful lives using the straight-line method over the following periods: Assets Estimated useful lives Software 3 to 7 years Customer relationships and other 5 to 8 years Amortization methods, residual values, and the useful lives of significant intangible assets are reviewed at least once a year. Any change is accounted for prospectively as a change in accounting estimate. |
Contract costs | (q) Contract costs Incremental and direct costs, such as costs to obtain a contract, mainly sales commissions, or the cost of connecting a subscriber to the Corporation’s telecommunication network, are included in contract costs and amortized over the period of time the customer is expected to maintain its service or over the contract term. The amortization of contract costs is included in purchase of goods and services in the consolidated statements of income. |
Provisions | (r) Provisions Provisions are recognized (i) when the Corporation has a present legal or constructive obligation as a result of a past event and it is probable that an outflow of economic benefits will be required to settle the obligation, and (ii) when the amount of the obligation can be reliably estimated. Restructuring costs, comprised primarily of termination benefits, are recognized when a detailed plan for the restructuring exists and a valid expectation has been raised in those affected, that the plan will be carried out. Provisions are reviewed at each consolidated balance sheet date and changes in estimates are reflected in the consolidated statements of income in the reporting period in which the changes occur. |
Stock-based compensation | (s) Stock-based compensation Stock-based awards to employees that call for settlement in cash, such as deferred share units (“DSUs”), or that call for settlement in cash at the option of the employee, such as stock option awards, are accounted for at fair value and classified as a liability. The compensation cost is recognized in expenses over the vesting period. Changes in the fair value of stock-based awards between the grant date and the measurement date result in a change in the liability and compensation cost. The fair value of DSUs is based on the underlying share price at the date of valuation. The fair value of stock option awards is determined by applying an option pricing model, taking into account the terms and conditions of the grant. Key assumptions are described in note 19. |
Pension plans and postretirement benefits | (t) Pension plans and postretirement benefits The Corporation offers defined contribution pension plans and defined benefit pension plans to some of its employees. (i) Defined contribution pension plans Under its defined contribution pension plans, the Corporation pays fixed contributions to participating employees’ pension plans and has no legal or constructive obligation to pay any further amounts. Obligations for contributions to defined contribution pension plans are recognized as employee benefits in the consolidated statements of income when the contributions become due. (ii) Defined benefit pension plans and postretirement plans Defined benefit pension plan costs are determined using actuarial methods and are accounted for using the projected unit credit method, which incorporates management’s best estimates of future salary levels, other cost escalations, retirement ages of employees, and other actuarial factors. Defined benefit pension costs recognized in the consolidated statements of income as employee costs, mainly include the following: ● service costs provided in exchange for employee services rendered during the period; ● prior service costs recognized at the earlier of (a) when the employee benefit plan is amended or (b) when restructuring costs are recognized; and ● curtailment or settlement gain or loss. Interest on net defined benefit liability or asset recognized in the consolidated statements of income as financial expenses, is determined by multiplying the net defined benefit liability or asset by the discount rate used to determine the defined benefit obligation. Re-measurements of the net defined benefit liability or asset are recognized immediately in other comprehensive income (loss) and in accumulated other comprehensive (loss) income. Re-measurements are comprised of the following: ● actuarial gains and losses arising from changes in financial and demographic actuarial assumptions used to determine the defined benefit obligation or from experience adjustments to liabilities; ● the difference between actual return on plan assets and interest income on plan assets anticipated as part of the interest on net defined benefit liability or asset calculation; and ● changes in the net benefit asset limit or in the minimum funding liability. 1. SUMMARY OF MATERIAL ACCOUNTING POLICIES (continued) (t) Pension plans and postretirement benefits (continued) (ii) Defined benefit pension plans and postretirement plans (continued) Recognition of a net benefit asset is limited under certain circumstances to the amount recoverable, which is primarily based on the present value of future contributions to the plan, to the extent that the Corporation can unilaterally reduce those future contributions. In addition, an adjustment to the net benefit asset or the net benefit liability can be recorded to reflect a minimum funding liability in a certain number of the Corporation’s pension plans. The Corporation also offers discounts on telecommunication services and health, life and dental insurance plans to some of its retired employees. The cost of postretirement benefits is determined using an accounting methodology similar to that for defined benefit pension plans. The benefits related to these plans are funded by the Corporation as they become due. |
Use of estimates and judgments | (u) Use of estimates and judgments The preparation of consolidated financial statements in accordance with IFRS requires management to make estimates, assumptions and judgments that affect the reported amounts of assets and liabilities, related amounts of revenues and expenses, and disclosure of contingent assets and liabilities. Although these estimates are based on management’s best judgment and information available at the time of the assessment date, actual results could differ from those estimates. The following significant areas represent management’s most difficult, subjective or complex estimates: (i) Recoverable amount of an asset or a CGU When an impairment test is performed on an asset or a CGU, management estimates the recoverable amount of the asset or CGU based on its fair value less costs of disposal or its value in use. These estimates are based on valuation models requiring the use of a number of assumptions such as forecasts of future cash flows, pre-tax discount rate (WACC) and perpetual growth rate. These assumptions have a significant impact on the results of impairment tests and on the impairment charge, as the case may be, recorded in the consolidated statements of income. A description of key assumptions used in the goodwill impairment tests and a sensitivity analysis of recoverable amounts are presented in note 12. (ii) Costs and obligations related to pension and postretirement benefit plans Estimates of costs and obligations related to pension and postretirement benefit obligations are based on a number of assumptions, such as the discount rate, the rate of increase in compensation, the retirement age of employees, health care costs, and other actuarial factors. Certain of these assumptions may have a significant impact on employee costs and financial expenses recorded in the consolidated statements of income, the re-measurement gain or loss on defined benefit plans recorded in the consolidated statements of comprehensive income, and the carrying value of other assets or other liabilities on the consolidated balance sheets. Key assumptions and a sensitivity analysis of the discount rate are presented in note 26. 1. SUMMARY OF MATERIAL ACCOUNTING POLICIES (continued) (u) Use of estimates and judgments (continued) (iii) Provisions The recognition of provisions requires management to estimate expenditures required to settle a present obligation or to transfer it to a third party at the date of assessment. It can also require an assessment of the probable outcomes of legal proceedings or other contingencies. Management expectations on the potential effect of the possible outcomes of legal disputes on the consolidated financial statements are presented in note 23. (iv) Contingent considerations and future conditional adjustments Contingent considerations and future conditional adjustments arising from business acquisition or disposal are measured and accounted for at their fair value. The fair value is estimated based on a present value model requiring management to assess the probabilities that the conditions on which the contingent considerations and future conditional adjustments are based will be met in the future. The assessment of these contingent potential outcomes requires judgment from management and could have an impact on the initial amount of contingent considerations or future conditional adjustments recognized and on any subsequent changes in fair value recorded in the consolidated statements of income. (v) Purchase price allocations As part of the purchase price allocation related to a business acquisition, the identifiable assets and liabilities of the business acquired are recognized at their fair value at the acquisition date. The determination of fair value requires management to make assumptions, estimates and judgments regarding a number of factors. These estimates are based on valuation models requiring the use of a number of assumptions such as revenue growth rates, customer attrition rates, operating margin forecasts, royalty rate and discount rates, as well as using available information such as comparable replacement cost data and market data. It also requires management to determine the most appropriate valuation method to estimate the fair value of each asset. The determination of a purchase price allocation could have an impact on the carrying value of assets and liabilities on the consolidated balance sheets, on the depreciation and amortization charge recorded in the consolidated statements of income, as well as on the results of impairment tests and on the impairment charge. The following areas represent management’s most significant judgments, apart from those involving estimates: (i) Useful life periods for the depreciation and amortization of assets with finite useful lives For each class of assets with finite useful lives, management has to determine over which period the Corporation will consume the assets’ future economic benefits. The determination of a useful life period involves judgment and has an impact on the depreciation and amortization charge recorded in the consolidated statements of income. (ii) Indefinite useful life of spectrum licences Management has concluded that spectrum licences have an indefinite useful life. This conclusion was based on an analysis of factors, such as the Corporation’s financial ability to renew the spectrum licences, the competitive, legal and regulatory landscape, and future expectations regarding the use of the spectrum licences. The determination that spectrum licences have an indefinite useful life therefore involves judgment, which could have an impact on the amortization charge recorded in the consolidated statements of income if management were to change its conclusion in the future. 1. SUMMARY OF MATERIAL ACCOUNTING POLICIES (continued) (u) Use of estimates and judgments (continued) (iii) Interpretation of laws and regulations Interpretation of laws and regulation, including those of the Canadian Radio-television and Telecommunications Commission (CRTC) and tax regulations, requires judgment from management and could have an impact on revenue recognition, provisions, income taxes and capital expenditures in the consolidated financial statements. |
Changes to accounting standards | (v) Changes to accounting standards On January 1, 2023, the Corporation adopted the following amendments to accounting standards: ● Amendments to IAS 1 , Presentation of financial statements - Disclosure of accounting policies , to require entities to disclose material accounting policies information rather than significant accounting policies; ● Amendments to IAS 8, Accounting policies, changes in accounting estimates and errors , to clarify the definition of the terms “accounting policy” and “accounting estimate”; ● Amendments to IAS 12, Income Taxes - Deferred income taxes related to assets and liabilities arising from a single transaction , to restrict the scope of the exemption related to the recognition of deferred income taxes. The adoption of these amendments to accounting policies had no material impact on the consolidated financial statements. |
Future changes to accounting standards | (w) Future changes to accounting standards The IASB has issued the following amendments to accounting standards that will become effective for the annual period beginning on January 1, 2024: ● Amendments to IAS 1 , Presentation of financial statements – Classification of liabilities as current or non-current , to clarify the requirements for classifying liabilities as current or non-current; ● Amendments to IAS 1 , Presentation of financial statements – Non-current liabilities with covenants , to clarify the classification, presentation and disclosure requirements for non-current liabilities with covenants; ● Amendments to IAS 7, Statement of cash flows and IFRS 7, Financial instruments: Disclosures – Supplier finance arrangements , to add disclosure requirements that oblige entities to provide qualitative and quantitative information about supplier finance arrangements. The Corporation does not expect these amendments to accounting policies to have a material impact on its consolidated financial statements. |
NOTES TO CONSOLIDATED FINANCI_2
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS | |
Schedule of major subsidiaries | % equity and voting Freedom Mobile Inc. 100.0 % VMedia Inc. 100.0 % Videotron Infrastructures Inc. 100.0 % Videotron US Inc. 100.0 % SETTE Inc. 84.53 % |
SUMMARY OF MATERIAL ACCOUNTIN_3
SUMMARY OF MATERIAL ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
SUMMARY OF MATERIAL ACCOUNTING POLICIES | |
Schedule of useful lives of property, plant and equipment | Depreciation is calculated on a straight-line basis over the following estimated useful lives: Assets Estimated useful lives Buildings and leasehold improvements 5 to 40 years Furniture and equipment 3 to 7 years Telecommunication networks 3 to 20 years |
Schedule of useful lives of intangible assets | Intangible assets with finite useful lives are amortized over their useful lives using the straight-line method over the following periods: Assets Estimated useful lives Software 3 to 7 years Customer relationships and other 5 to 8 years |
EMPLOYEE COSTS AND PURCHASE O_2
EMPLOYEE COSTS AND PURCHASE OF GOODS AND SERVICES (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
EMPLOYEE COSTS AND PURCHASE OF GOODS AND SERVICES | |
Schedule of employee costs and purchase of goods and services | 2023 2022 2021 Employee costs $ 636.4 $ 539.5 $ 574.3 Less employee costs capitalized to property, plant and equipment and to intangible assets (164.1) (141.8) (168.4) 472.3 397.7 405.9 Purchase of goods and services: 1 Royalties and rights 425.5 416.0 401.0 Cost of products sold 824.6 460.3 497.3 Subcontracting costs 109.9 92.9 147.7 Marketing and distribution expenses 95.1 62.1 61.3 Other 496.3 376.3 346.1 1,951.4 1,407.6 1,453.4 $ 2,423.7 $ 1,805.3 $ 1,859.3 1 Cost of inventories included in purchase of goods and services amounted to $739.8 million in 2023 ( $444.2 million in 2022 and $470.7 million in 2021). Write-downs of inventories totalling $3.8 million were recognized in purchase of goods and services in 2023 ( $3.1 million in 2022 and $2.0 million in 2021). |
FINANCIAL EXPENSES (Tables)
FINANCIAL EXPENSES (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
FINANCIAL EXPENSES | |
Schedule of financial expenses | 2023 2022 2021 Third parties: Interest on long-term debt $ 366.1 $ 235.3 $ 228.0 Amortization of financing costs 8.0 5.8 6.1 Interest on lease liabilities 16.2 5.3 5.4 Interest on net defined benefit liability 0.9 3.1 5.4 (Gain) loss on foreign currency translation of short-term monetary items (0.6) 2.8 (1.1) Other 4.3 0.5 (3.7) 394.9 252.8 240.1 Affiliated corporations: Interest expense 126.2 182.5 175.5 Dividend income (127.5) (184.4) (177.4) Interest on lease liabilities 1.3 1.5 1.7 Interest income (63.9) (7.8) (7.8) (63.9) (8.2) (8.0) $ 331.0 $ 244.6 $ 232.1 |
RESTRUCTURING, ACQUISITION CO_2
RESTRUCTURING, ACQUISITION COSTS AND OTHER (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
RESTRUCTURING, ACQUISITION COSTS AND OTHER | |
RESTRUCTURING, ACQUISITION COSTS AND OTHER | 2023 2022 2021 Restructuring $ 4.9 $ 3.9 $ 12.3 Acquisition costs 1 15.6 6.5 — Impairment of assets 0.4 2.9 0.8 Other (0.5) (0.6) (1.5) $ 20.4 $ 12.7 $ 11.6 1 Includes acquisition costs mainly related to the Freedom acquisition (note 7). |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
INCOME TAXES | |
Schedule of reconciliation of income taxes at Corporation's domestic statutory tax rate | 2023 2022 2021 Income taxes at domestic statutory tax rate $ 274.3 $ 253.1 $ 231.5 (Reduction) increase resulting from: Non-deductible charges, non-taxable income and differences between current and future tax rates 0.1 (0.5) (5.7) Tax consolidation transactions (note 25) (33.8) (48.9) (47.0) Other (2.9) (5.8) 1.5 Income taxes $ 237.7 $ 197.9 $ 180.3 |
Schedule of net deferred income tax liability and their impact on deferred income tax expense | Consolidated Consolidated balance sheets income statements 2023 2022 2023 2022 2021 Loss carryforwards $ 98.8 $ — $ 0.9 $ — $ — Decommissioning obligation 37.6 15.6 (0.3) — — Defined benefit plans 4.8 3.4 (3.1) — (2.3) Contract assets (45.2) (18.3) 13.8 (22.9) (24.3) Property, plant and equipment (414.3) (400.7) 8.3 (34.8) (24.4) Goodwill, intangible assets and other assets (449.1) (323.9) 19.2 (7.7) 7.4 Long-term debt and derivative financial instruments (5.0) (4.8) 0.7 3.9 (6.1) Other 13.2 13.2 (14.9) (4.0) (5.5) $ (759.2) $ (715.5) $ 24.6 $ (65.5) $ (55.2) |
Schedule of changes in net deferred income tax liability | Note 2023 2022 Balance at beginning of year $ (715.5) $ (762.7) Recognized in income as continuing operations (24.6) 65.5 Recognized in other comprehensive income (1.2) (14.3) Business acquisitions 7 (17.9) (4.0) Balance at end of year $ (759.2) $ (715.5) |
BUSINESS ACQUISITIONS (Tables)
BUSINESS ACQUISITIONS (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
BUSINESS ACQUISITIONS | |
Schedule of fair value of the net assets acquired as of the acquisition date | Assets Accounts receivable $ 257.3 Other current assets 1 181.3 Property, plant and equipment 2 709.1 Intangible assets 3 1,177.7 Right-of-use of assets 226.2 Other assets 65.8 2,617.4 Liabilities Accounts payable, accrued charges and provisions (127.2) Other current liabilities (94.2) Lease liabilities (226.2) Deferred income taxes (17.9) Other liabilities (84.1) (549.6) Net assets acquired $ 2,067.8 Cash consideration paid $ 2,171.0 Cash acquired (103.2) $ 2,067.8 1 Includes mainly inventories and contract assets. 2 Includes mainly the wireless network (note 9). 3 Includes mainly spectrum licences, software, customer relationships, the Freedom brand and others (note 10). |
ACCOUNTS RECEIVABLE (Tables)
ACCOUNTS RECEIVABLE (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
ACCOUNTS RECEIVABLE | |
ACCOUNTS RECEIVABLE | 2023 2022 Trade $ 835.3 $ 551.6 Other 127.9 67.5 $ 963.2 $ 619.1 |
PROPERTY, PLANT AND EQUIPMENT (
PROPERTY, PLANT AND EQUIPMENT (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
PROPERTY, PLANT AND EQUIPMENT | |
Schedule of changes in the net carrying amount of property, plant and equipment | Land, buildings and Telecom- Projects leasehold Furniture and munication under improvements equipment networks development Total Cost Balance as of December 31, 2021 $ 233.8 $ 1,383.0 $ 6,841.2 $ 95.8 $ 8,553.8 Additions 3.1 66.8 257.1 42.7 369.7 Net change in additions financed with non-cash balances — (2.6) (9.5) 14.7 2.6 Reclassification (6.4) 6.8 82.0 (82.4) — Retirement, disposals and other (2.0) (137.4) (60.3) — (199.7) Balance as of December 31, 2022 228.5 1,316.6 7,110.5 70.8 8,726.4 Additions 1.4 56.9 205.0 126.0 389.3 Net change in additions financed with non-cash balances — 0.2 22.1 (21.6) 0.7 Business acquisitions (note 7) 11.3 16.7 598.0 83.1 709.1 Reclassification 0.4 2.9 95.6 (98.9) — Retirement, disposals and other (4.4) (82.2) (71.8) — (158.4) Balance as of December 31, 2023 $ 237.2 $ 1,311.1 $ 7,959.4 $ 159.4 $ 9,667.1 Land, buildings and Telecom- Projects leasehold Furniture and munication under improvements equipment networks development Total Accumulated depreciation and impairment losses Balance as of December 31, 2021 $ 95.0 $ 1,150.2 $ 4,547.0 $ — $ 5,792.2 Depreciation 6.2 78.6 431.2 — 516.0 Retirement, disposals and other (2.0) (132.7) (57.5) — (192.2) Balance as of December 31, 2022 99.2 1,096.1 4,920.7 — 6,116.0 Depreciation 9.1 74.2 467.9 — 551.2 Retirement, disposals and other (2.1) (80.2) (70.7) — (153.0) Balance as of December 31, 2023 $ 106.2 $ 1,090.1 $ 5,317.9 $ — $ 6,514.2 Net carrying amount As of December 31, 2022 $ 129.3 $ 220.5 $ 2,189.8 $ 70.8 $ 2,610.4 As of December 31, 2023 131.0 221.0 2,641.5 159.4 3,152.9 |
INTANGIBLE ASSETS (Tables)
INTANGIBLE ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
INTANGIBLE ASSETS | |
Schedule of changes in the net carrying amount of intangible assets | Customer relationships, brand names, projects under Spectrum development licences Software and other Total Cost Balance as of December 31, 2021 $ 1,809.3 $ 1,339.1 $ 212.3 $ 3,360.7 Additions — 48.0 27.1 75.1 Net change in additions financed with non-cash balances — 5.5 (2.6) 2.9 Business acquisitions (note 7) — 11.7 6.1 17.8 Reclassification — 165.2 (165.2) — Retirement, disposals and other — (29.8) (0.3) (30.1) Balance as of December 31, 2022 1,809.3 1,539.7 77.4 3,426.4 Additions 1 9.9 93.1 53.6 156.6 Net change in additions financed with non-cash balances — (12.6) 8.9 (3.7) Business acquisitions (note 7) 791.7 89.9 296.1 1,177.7 Reclassification — 72.0 (72.0) — Retirement, disposals and other — (30.0) — (30.0) Balance as of December 31, 2023 $ 2,610.9 $ 1,752.1 $ 364.0 $ 4,727.0 Customer relationships, brand names, projects under Spectrum development licences Software and other Total Accumulated amortization and impairment losses Balance as of December 31, 2021 $ 247.7 $ 890.1 $ 10.9 $ 1,148.7 Amortization — 139.4 3.0 142.4 Retirement, disposals and other — (27.1) (0.3) (27.4) Balance as of December 31, 2022 247.7 1,002.4 13.6 1,263.7 Amortization — 167.1 26.9 194.0 Retirement, disposals and other — (30.0) — (30.0) Balance as of December 31, 2023 $ 247.7 $ 1,139.5 $ 40.5 $ 1,427.7 Net carrying amount As of December 31, 2022 $ 1,561.6 $ 537.3 $ 63.8 $ 2,162.7 As of December 31, 2023 2,363.2 612.6 323.5 3,299.3 1 In 2023, Videotron acquired spectrum licences in the 600 MHz band in Manitoba and in the 3500 MHz band in Québec. |
RIGHT-OF-USE ASSETS (Tables)
RIGHT-OF-USE ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
RIGHT-OF-USE ASSETS | |
Schedule of changes in the net carrying amount of right-of-use assets, which mainly relates to leases of premises and vehicles | Changes in the net carrying amount of right-of-use assets which mainly relate to leases of premises and vehicles, are as follows: Note 2023 2022 Cost Balance at beginning of year $ 381.5 $ 352.8 Additions financed with lease obligations 56.9 45.3 Business acquisitions 7 226.2 — Retirement and other (16.9) (16.6) Balance at end of year 647.7 381.5 Accumulated depreciation Balance at beginning of year 253.4 229.9 Depreciation 98.8 41.2 Retirement and other (17.5) (17.7) Balance at end of year 334.7 253.4 Net carrying amount $ 313.0 $ 128.1 |
GOODWILL (Tables)
GOODWILL (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
GOODWILL | |
Schedule of changes in the net carrying amount of goodwill | Changes in the net carrying amount of goodwill are as follows: Note 2023 2022 Cost Balance at beginning of year $ 618.6 $ 611.1 Business acquisitions 7 — 7.5 Balance at end of year 618.6 618.6 Accumulated impairment losses Balance at beginning and at end of year 68.5 68.5 Net carrying amount $ 550.1 $ 550.1 |
Schedule of determination of recoverable amounts in the impairment tests performed in significant CGU groups | The following key assumptions were used to determine recoverable amounts in the most recent impairment tests performed: 2023 2022 Pre-tax discount Perpetual Pre-tax discount Perpetual CGU group rate (WACC) growth rate rate (WACC) growth rate Telecommunications 1 10.8 % 2.0 % 10.5 % 2.0 % 1 The recoverable amounts were based on value in use, using the discounted cash flow method. |
OTHER ASSETS (Tables)
OTHER ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
OTHER ASSETS | |
Schedule of other assets | 2023 2022 Equipment installments receivable $ 648.0 $ 431.3 Contract costs 1 231.7 175.4 Contract assets 2 171.9 69.1 Other 25.0 20.1 1,076.6 695.9 Less current portion of equipment installments receivable (included in “Accounts receivable”) (475.9) (321.9) Less current portion of contract costs (included in “Other current assets”) (126.8) (75.9) Less current portion of contract assets (125.4) (50.2) $ 348.5 $ 247.9 1 Amortization amounted to $128.9 million in 2023 ( $81.4 million in 2022 and $73.3 million in 2021). 2 Impairment loss on contract assets resulting from mobile contracts being cancelled prior to their initial term amounted to $2.8 million in 2023 ( $9.9 million in 2022 and $17.1 million in 2021), net of the early termination penalty charged to the customer. In current and comparative periods, there were no significant cumulative catch-up adjustments to revenue that affected the corresponding contract asset, including adjustments arising from a change in an estimate of the transaction price or a contract modification. There were also no significant changes in the time frame for a performance obligation to be satisfied. |
ACCOUNTS PAYABLE, ACCRUED CHA_2
ACCOUNTS PAYABLE, ACCRUED CHARGES AND PROVISIONS (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
ACCOUNTS PAYABLE, ACCRUED CHARGES AND PROVISIONS | |
Schedule of accounts payable and accrued charges and provisions | 2023 2022 Trade and accruals $ 731.3 $ 502.6 Salaries and employee benefits 127.8 72.1 Interest payable 52.2 42.9 Provisions and other 9.6 11.9 $ 920.9 $ 629.5 |
LONG-TERM DEBT (Tables)
LONG-TERM DEBT (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
LONG-TERM DEBT | |
Schedule of long-term debt | Effective interest rate as of December 31, 2023 2023 2022 Bank credit facilities (i) 6.89 % $ 2,419.0 $ 77.5 Senior Notes (ii) 5,226.3 5,279.1 Total long-term debt 7,645.3 5,356.6 Change in fair value related to hedged interest rate risk (2.2) (5.6) Financing costs, net of amortization (33.2) (32.7) (35.4) (38.3) 7,609.9 5,318.3 Less current portion (1,480.6) — $ 6,129.3 $ 5,318.3 As of December 31, 2023, the carrying value of long-term debt denominated in U.S. dollars, excluding financing costs, was $4,484.5 million ($2,298.5 million as of December 31, 2022) while the net fair value of related hedging derivative instruments was in an asset position of $106.9 million ($196.1 million as of December 31, 2022). (i) The bank credit facilities provide for a $2,000.0 million ( $1,500.0 million as of December 31, 2022) secured revolving credit facility that matures in July 2026 and a $2,100.0 million secured term credit facility entered into in April 2023, consisting of three tranches of equal size maturing in October 2024, April 2026 and April 2027. The credit facilities bear interest at Bankers’ acceptance rate, Secured Overnight Financing Rate (“SOFR”), Canadian prime rate or U.S. prime rate, plus a premium determined by the Corporation’s leverage ratio. The bank credit facilities are secured by a first ranking hypothec on the universality of all tangible and intangible assets, current and future, of the Corporation and most of its wholly owned subsidiaries. As of December 31, 2023, the bank credit facilities were secured by assets with a carrying value of $10,461.6 million ( $8,729.9 million in 2022). The bank credit facilities contain covenants such as maintaining certain financial ratios, as well as limitations on the Corporation’s ability to incur additional indebtedness, pay dividends, or make other distributions. As of December 31, 2023, $361.0 million was drawn on the secured revolving credit facility ( $77.5 million as of December 31, 2022) and $2,058.0 million was outstanding on the secured term credit facility. In 2023, Videotron contracted new unsecured on-demand credit facilities under which letters of credit of $290.9 million, as of December 31, 2023, were issued and submitted to ISED Canada for the investment in blocks of spectrum in the 3800 MHz band announced on November 30, 2023 (note 27). (ii) The Senior Notes are unsecured and contain certain restrictions on the Corporation, including limitations on its ability to incur additional indebtedness, pay dividends, or make other distributions. Some Notes are redeemable at the option of the issuer, in whole or in part, at a price based on a make-whole formula during the first three or five years of the term of the Notes and at a decreasing premium thereafter, while the remaining Notes are redeemable at a price based on a make-whole formula at any time prior to maturity. The Senior Notes are guaranteed by specific subsidiaries of the Corporation. The following table summarizes the terms of the outstanding Senior Notes as of December 31, 2023: Annual nominal Interest payable Principal amount interest rate Maturity date every 6 months on US $ 600.0 5.375 % June 15, 2024 June and December 15 $ 400.0 5.625 % June 15, 2025 April and October 15 $ 375.0 5.750 % January 15, 2026 March and September 15 US $ 600.0 5.125 % April 15, 2027 April and October 15 $ 800.0 4.500 % January 15, 2030 April and October 15 $ 650.0 1 3.125 % January 15, 2031 January and July 15 $ 750.0 2 3.625 % June 15, 2028 June and December 15 US $ 500.0 3 3.625 % June 15, 2029 June and December 15 1 The Notes were issued in January 2021 for net proceeds of $644.0 million, net of financing costs of $6.0 million. 2 The Notes were issued in June 2021 for net proceeds of $743.2 million, net of financing costs of $6.8 million. 3 The Notes were issued in June 2021 for net proceeds of $599.6 million, net of financing costs of $5.8 million. |
Schedule of principal repayments of long-term debt | Principal repayments of long-term debt over the coming years are as follows: 2024 $ 1,480.6 2025 400.0 2026 1,422.0 2027 1,480.6 2028 750.0 2029 and thereafter 2,112.1 |
Schedule of changes in long-term debt | Changes in long-term debt are as follows: 2023 2022 Balance at beginning of year $ 5,318.3 $ 5,380.1 Net change under revolving facility, net of financing costs 285.0 (209.6) Issuance of long-term debt, net of financing costs 2,092.5 — Foreign currency translation (97.3) 155.9 Amortization of financing costs 8.0 5.8 Change in fair value related to hedged interest rate risk 3.4 (13.9) Balance at end of year $ 7,609.9 $ 5,318.3 |
LEASE LIABILITIES (Tables)
LEASE LIABILITIES (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
LEASE LIABILITIES | |
Schedule of changes in lease liabilities | Changes in lease liabilities are as follows: Note 2023 2022 Balance at beginning of year $ 158.3 $ 153.8 Lease obligations financing right-of-use assets 56.9 45.3 Business acquisitions 7 226.2 — Repayments (94.8) (42.1) Other (0.5) 1.3 346.1 158.3 Less current portion (99.3) (37.3) $ 246.8 $ 121.0 |
Schedule of repayments of lease liabilities over the coming years | Repayments of lease liabilities over the coming years are as follows: 2024 $ 99.3 2025 80.3 2026 62.3 2027 44.4 2028 27.5 2029 and thereafter 32.3 |
OTHER LIABILITIES (Tables)
OTHER LIABILITIES (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
OTHER LIABILITIES | |
Schedule of other liabilities | Note 2023 2022 Decommissioning obligation $ 143.5 $ 59.0 Defined benefit plans 26 19.0 20.6 Other 45.1 44.7 $ 207.6 $ 124.3 |
CAPITAL STOCK (Tables)
CAPITAL STOCK (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
CAPITAL STOCK | |
Summary of issued and outstanding capital stock | Common shares Number Amount Balance as of December 31, 2021 10,718,327 $ 295.6 Issuance of common shares 20,958 17.3 Balance as of December 31, 2022 and 2023 10,739,285 $ 312.9 |
STOCK-BASED COMPENSATION PLANS
STOCK-BASED COMPENSATION PLANS (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
STOCK-BASED COMPENSATION PLANS | |
Schedule of weighted-average assumptions used to estimate the fair value of outstanding stock options | December 31, December 31, 2023 2022 Risk-free interest rate 3.38 % 3.60 % Distribution yield 3.81 % 3.97 % Expected volatility 22.73 % 22.07 % Expected remaining life 4.0 years 4.4 years |
Ultimate parent corporation stock option plan | |
STOCK-BASED COMPENSATION PLANS | |
Schedule of information on changes to outstanding options | 2023 2022 Weighted Weighted average average Options exercise price Options exercise price Balance at beginning of year 1,048,934 $ 29.06 543,934 $ 30.58 Granted 1,845,000 32.71 650,000 27.85 Transferred — — 30,000 32.66 Exercised (8,733) 29.42 (16,666) 26.52 Cancelled (143,641) 30.58 (158,334) 30.27 Balance at end of year 2,741,560 $ 31.43 1,048,934 $ 29.06 Vested options at end of year 245,793 $ 29.61 125,397 $ 28.48 |
ACCUMULATED OTHER COMPREHENSI_2
ACCUMULATED OTHER COMPREHENSIVE LOSS ATTRIBUTABLE TO SHAREHOLDER (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
ACCUMULATED OTHER COMPREHENSIVE LOSS ATTRIBUTABLE TO SHAREHOLDER | |
Schedule of accumulated other comprehensive loss attributable to shareholder | Defined Cash flow hedges 1 benefit plans Total Balance as of December 31, 2020 $ 20.8 $ (126.5) $ (105.7) Other comprehensive income 5.6 79.3 84.9 Balance as of December 31, 2021 26.4 (47.2) (20.8) Other comprehensive (loss) income (52.7) 56.8 4.1 Balance as of December 31, 2022 (26.3) 9.6 (16.7) Other comprehensive income 5.6 4.7 10.3 Balance as of December 31, 2023 $ (20.7) $ 14.3 $ (6.4) 1 No significant amount is expected to be reclassified in income over the next 12 months in connection with derivatives designated as cash flow hedges. The balance is expected to reverse over a 5 1/2 -year period. |
COMMITMENTS (Tables)
COMMITMENTS (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
COMMITMENTS | |
Schedule of minimum payments for long-term commitments to purchase services, tangible and intangible assets, and to pay licences and royalties | 2024 $ 769.9 2025 to 2028 1,404.8 2029 and thereafter 27.1 |
FINANCIAL INSTRUMENTS AND FIN_2
FINANCIAL INSTRUMENTS AND FINANCIAL RISK MANAGEMENT (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
FINANCIAL INSTRUMENTS AND FINANCIAL RISK MANAGEMENT | |
Schedule of derivative financial instruments | CAN dollar average exchange rate per one U.S. Notional Notional Maturity dollar amount sold amount bought Less than 1 year 1.3430 $ 96.0 US$ 71.5 Maturity Notional amount Pay/receive Fixed rate Floating rate 2027 $ 700.0 Pay fixed/ receive floating 3.503 % 1‑month Bankers’ acceptance Hedged item Hedging instrument CAN dollar Annual interest exchange rate on rate on notional interest and Period Notional amount in capital payments covered amount CAN dollars per one U.S. dollar Secured term credit facility 1 month US$ 1,554.0 1-month 1.3514 Secured revolving credit facility 1 month US$ 134.0 1-month 1.3435 5.375% Senior Notes due 2024 2014 to 2024 US$ 158.6 3-months % 1.1034 5.375% Senior Notes due 2024 2017 to 2024 US$ 441.4 5.62 % 1.1039 5.125% Senior Notes due 2027 2017 to 2027 US$ 600.0 4.82 % 1.3407 3.625% Senior Notes due 2029 2021 to 2029 US$ 500.0 4.04 % 1.2109 |
Schedule of carrying value and fair value of long-term debt and derivative financial instruments | 2023 2022 Carrying Fair Carrying Fair Asset (liability) value value value value Long-term debt 1 $ (7,645.3) $ (7,368.1) $ (5,356.6) $ (4,800.7) Derivative financial instruments 2 Foreign exchange forward contracts (1.5) (1.5) 3.4 3.4 Interest rate swaps 5.4 5.4 — — Cross-currency swaps 106.9 106.9 196.1 196.1 1 The carrying value of long-term debt excludes changes in the fair value of long-term debt related to hedged interest rate risk and financing costs. 2 The net fair value of derivative financial instruments designated as cash flow hedges is an asset position of $78.0 million as of December 31, 2023 ( $165.5 million in 2022) and the net fair value of derivative financial instruments designated as fair value hedges is an asset position of $32.8 million as of December 31, 2023 ( $34.0 million in 2022). |
Schedule of changes to the provision for expected credit losses | Note 2023 2022 Balance at beginning of year $ 12.1 $ 14.4 Changes in expected credit losses charged to income 35.6 16.3 Business acquisitions 7 36.3 — Write-off (25.4) (18.6) Balance at end of year $ 58.6 $ 12.1 |
Schedule of maturities of financial instruments | Less than 5 years Total 1 year 1-3 years 3-5 years or more Accounts payable and accrued charges $ 913.4 $ 913.4 $ — $ — $ — Amounts payable to affiliated corporations 91.0 91.0 — — — Long-term debt 1 7,645.3 1,480.6 1,822.0 2,230.6 2,112.1 Interest payments on long-term debt 2 1,171.3 308.7 517.2 237.3 108.1 Lease liabilities 346.1 99.3 142.6 71.9 32.3 Interest payments on lease liabilities 59.8 17.7 25.3 11.8 5.0 Derivative financial instruments 3 (134.6) (87.7) — 9.8 (56.7) Total $ 10,092.3 $ 2,823.0 $ 2,507.1 $ 2,561.4 $ 2,200.8 1 The carrying value of long-term debt excludes changes in the fair value of long-term debt related to hedged interest rate risk and financing costs. 2 Estimate of interest payable on long-term debt, based on interest rates, hedging of interest rates and hedging of foreign exchange rates as of December 31, 2023. 3 Estimated future receipts, net of future disbursements, on derivative financial instruments related to foreign exchange hedging on the principal of U.S.-dollar-denominated debt . |
Schedule of capital structure | 2023 2022 Bank indebtedness $ — $ 0.4 Long-term debt 7,609.9 5,318.3 Lease liabilities 346.1 158.3 Derivative financial instruments (110.8) (199.5) Cash and cash equivalents (8.0) (1.8) Promissory note to the parent corporation (996.0) (160.0) Net liabilities 6,841.2 5,115.7 Equity $ 155.9 $ (230.8) |
Foreign currency risk | |
FINANCIAL INSTRUMENTS AND FINANCIAL RISK MANAGEMENT | |
Schedule of estimated sensitivity on income and on other comprehensive income, before income tax | Other comprehensive Increase (decrease) Income income Increase of $0.10 $ 0.2 $ 6.7 Decrease of $0.10 (0.2) (6.7) |
RELATED PARTY TRANSACTIONS (Tab
RELATED PARTY TRANSACTIONS (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
RELATED PARTY TRANSACTIONS | |
Schedule of key management personnel compensation | 2023 2022 2021 Salaries and short-term benefits $ 2.0 $ 2.7 $ 3.2 Share-based compensation 1.5 0.5 (1.3) Termination and other long-term benefits 0.1 0.6 0.9 $ 3.6 $ 3.8 $ 2.8 |
Schedule of transactions between related parties | Operating transactions 2023 2022 2021 Ultimate parent and parent corporation Revenues $ 0.4 $ 0.4 $ 0.4 Purchase of goods and services 2.6 10.2 10.2 Operating expenses recovered (1.8) (2.0) (2.3) Corporations under common control Revenues 4.1 4.7 5.3 Purchase of goods and services 147.5 112.3 109.7 Operating expenses recovered 0.2 (0.7) 0.4 Other affiliated corporations Purchase of goods and services 30.5 21.9 10.6 Acquisition of property, plant and equipment and intangible assets 11.0 8.6 4.6 Accounts receivable from affiliated corporations 2023 2022 Ultimate parent and parent corporation Accounts receivable $ 3.5 $ 2.4 Dividends receivable — 5.0 Interest receivable 14.5 2.6 Corporations under common control Accounts receivable 7.1 3.6 $ 25.1 $ 13.6 Accounts payable to affiliated corporations 2023 2022 Ultimate parent and parent corporation Accounts payable $ 36.8 $ 55.4 Interest payable — 5.0 Corporations under common control Accounts payable 54.2 35.1 $ 91.0 $ 95.5 |
Schedule of tax consolidation transactions | 2023 2022 Investment in an affiliated corporation 1 $ — $ 1,595.0 Subordinated loan from the parent corporation 2 — (1,595.0) 1 Investment in 1,595,000 preferred shares, Series C, of 9346-9963 Quebec Inc., a subsidiary of Quebecor Media Inc., carrying the right to receive an annual dividend of 9.6% , payable semi-annually. 2 Subordinated loan of $1,595.0 million from Quebecor Media Inc., bearing interest at a rate of 9.5 %, payable semi-annually. |
PENSION PLANS AND POSTRETIREM_2
PENSION PLANS AND POSTRETIREMENT BENEFITS (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
PENSION PLANS AND POSTRETIREMENT BENEFITS | |
Schedule of reconciliation of the changes in the plans' benefit obligations and the fair value of plan assets | The following tables show a reconciliation of the changes in the plans’ benefit obligations and the fair value of plan assets for the years ended December 31, 2023 and 2022: Pension benefits Postretirement benefits 2023 2022 2023 2022 Change in benefit obligations Benefit obligations at the beginning of the year $ 454.6 $ 659.0 $ 17.0 $ 38.9 Service costs 10.2 22.7 0.4 0.9 Interest costs 23.5 17.4 0.9 1.0 Plan participants’ contributions 5.0 4.7 — — Actuarial loss (gain) arising from: Financial assumptions 38.4 (215.2) 1.5 (12.6) Demographic assumptions — — — (2.4) Participant experience 3.1 3.5 — (6.2) Benefits and settlements paid (15.7) (37.5) (0.8) (0.7) Plan amendments and other — — — (1.9) Benefit obligations at the end of the year $ 519.1 $ 454.6 $ 19.0 $ 17.0 Pension benefits Postretirement benefits 2023 2022 2023 2022 Change in plan assets Fair value of plan assets at the beginning of the year $ 527.6 $ 607.7 $ — $ — Actual return on plan assets 54.1 (69.3) — — Employer contributions 1.7 22.7 0.8 0.7 Plan participants’ contributions 5.0 4.7 — — Benefits and settlements paid (15.7) (37.5) (0.8) (0.7) Administrative fees (0.7) (0.7) — — Fair value of plan assets at the end of the year $ 572.0 $ 527.6 $ — $ — |
Schedule of composition of plan assets | 2023 2022 Equity securities: Canadian 19.1 % 18.3 % Foreign 26.8 26.2 Debt securities 37.0 36.4 Other 17.1 19.1 100.0 % 100.0 % |
Schedule of reconciliation of funded status to the net amount | Pension benefits Postretirement benefits 2023 2022 2023 2022 Benefit obligations $ (519.1) $ (454.6) $ (19.0) $ (17.0) Fair value of plan assets 572.0 527.6 — — Plan surplus (deficit) 52.9 73.0 (19.0) (17.0) Asset limit and minimum funding adjustment (52.1) (70.7) — — Net amount recognized 1 $ 0.8 $ 2.3 $ (19.0) $ (17.0) 1 The net liability recognized for 2023 is $18.2 million ( $14.7 million in 2022), of which an amount of $19.0 million ( $20.6 million in 2022) is included in “Other liabilities” and $0.8 million ( $5.9 million in 2022) is included in “Other assets”. |
Schedule of components of re-measurements | Pension benefits Postretirement benefits 2023 2022 2021 2023 2022 2021 Actuarial (loss) gain on benefit obligations $ (41.5) $ 211.7 $ 60.0 $ (1.5) $ 21.2 $ 5.5 Actual return on plan assets, less interest income anticipated in the interest on the net defined benefit liability calculation 27.1 (84.9) 42.4 — — — Asset limit and minimum funding adjustment 22.3 (70.7) — — — — Re-measurement gain (loss) recorded in other comprehensive income $ 7.9 $ 56.1 $ 102.4 $ (1.5) $ 21.2 $ 5.5 |
Schedule of components of net benefit costs | Pension benefits Postretirement benefits 2023 2022 2021 2023 2022 2021 Employee costs: Service costs $ 10.2 $ 22.7 $ 27.0 $ 0.4 $ 0.9 $ 1.7 Plan amendments, administrative fees and other 0.7 0.6 0.5 — (2.0) (3.8) Interest on net defined benefit liability 0.1 2.0 4.2 0.9 1.1 1.2 Net benefit costs (gain) $ 11.0 $ 25.3 $ 31.7 $ 1.3 $ — $ (0.9) |
Schedule of actuarial assumptions used in measuring the Corporation's benefit obligations | The actuarial assumptions used in measuring the Corporation’s benefit obligations as of December 31, 2023, 2022 and 2021 and current periodic benefit costs are as follows: Pension and postretirement benefits 2023 2022 2021 Benefit obligations Rates as of year-end: Discount rate 4.60 % 5.10 % 3.00 % Rate of compensation increase 3.00 3.00 3.00 Current periodic costs Rates as of preceding year-end: Discount rate 5.10 % 3.00 % 2.50 % Rate of compensation increase 3.00 3.00 3.00 |
NOTES TO CONSOLIDATED FINANCI_3
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Details) | 12 Months Ended |
Dec. 31, 2023 | |
Freedom Mobile Inc | |
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS | |
Percentage of equity held | 100% |
Percentage of voting rights | 100% |
VMedia Inc. | |
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS | |
Percentage of equity held | 100% |
Percentage of voting rights | 100% |
Videotron Infrastructures Inc. | |
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS | |
Percentage of equity held | 100% |
Percentage of voting rights | 100% |
Videotron US Inc. | |
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS | |
Percentage of equity held | 100% |
Percentage of voting rights | 100% |
SETTE Inc. | |
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS | |
Percentage of equity held | 84.53% |
Percentage of voting rights | 84.53% |
SUMMARY OF MATERIAL ACCOUNTIN_4
SUMMARY OF MATERIAL ACCOUNTING POLICIES (Details) - CAD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 | Mar. 31, 2021 |
SUMMARY OF MATERIAL ACCOUNTING POLICIES | |||
Government grants received in advance | $ 216.2 | ||
Deferred subsidies | $ 0 | $ 39.3 |
SUMMARY OF MATERIAL ACCOUNTIN_5
SUMMARY OF MATERIAL ACCOUNTING POLICIES - Property, plant and equipment (Details) | 12 Months Ended |
Dec. 31, 2023 | |
Buildings and leasehold improvements | Minimum | |
SUMMARY OF MATERIAL ACCOUNTING POLICIES | |
Estimated useful lives of plant, property and equipment | 5 years |
Buildings and leasehold improvements | Maximum | |
SUMMARY OF MATERIAL ACCOUNTING POLICIES | |
Estimated useful lives of plant, property and equipment | 40 years |
Furniture and equipment | Minimum | |
SUMMARY OF MATERIAL ACCOUNTING POLICIES | |
Estimated useful lives of plant, property and equipment | 3 years |
Furniture and equipment | Maximum | |
SUMMARY OF MATERIAL ACCOUNTING POLICIES | |
Estimated useful lives of plant, property and equipment | 7 years |
Telecommunication networks | Minimum | |
SUMMARY OF MATERIAL ACCOUNTING POLICIES | |
Estimated useful lives of plant, property and equipment | 3 years |
Telecommunication networks | Maximum | |
SUMMARY OF MATERIAL ACCOUNTING POLICIES | |
Estimated useful lives of plant, property and equipment | 20 years |
SUMMARY OF MATERIAL ACCOUNTIN_6
SUMMARY OF MATERIAL ACCOUNTING POLICIES - Goodwill and intangible assets (Details) | 12 Months Ended |
Dec. 31, 2023 | |
Software | Minimum | |
SUMMARY OF MATERIAL ACCOUNTING POLICIES | |
Estimated useful lives of intangible assets with finite lives | 3 years |
Software | Maximum | |
SUMMARY OF MATERIAL ACCOUNTING POLICIES | |
Estimated useful lives of intangible assets with finite lives | 7 years |
Customer relationships and other | Minimum | |
SUMMARY OF MATERIAL ACCOUNTING POLICIES | |
Estimated useful lives of intangible assets with finite lives | 5 years |
Customer relationships and other | Maximum | |
SUMMARY OF MATERIAL ACCOUNTING POLICIES | |
Estimated useful lives of intangible assets with finite lives | 8 years |
EMPLOYEE COSTS AND PURCHASE O_3
EMPLOYEE COSTS AND PURCHASE OF GOODS AND SERVICES (Details) - CAD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
EMPLOYEE COSTS AND PURCHASE OF GOODS AND SERVICES | |||
Employee costs | $ 636.4 | $ 539.5 | $ 574.3 |
Less employee costs capitalized to property, plant and equipment and to intangible assets | (164.1) | (141.8) | (168.4) |
Total employee costs | 472.3 | 397.7 | 405.9 |
Purchase of goods and services: | |||
Royalties and rights | 425.5 | 416 | 401 |
Cost of products sold | 824.6 | 460.3 | 497.3 |
Subcontracting costs | 109.9 | 92.9 | 147.7 |
Marketing and distribution expenses | 95.1 | 62.1 | 61.3 |
Other | 496.3 | 376.3 | 346.1 |
Purchase of goods and services | 1,951.4 | 1,407.6 | 1,453.4 |
Total employee costs and purchase of goods and services | 2,423.7 | 1,805.3 | 1,859.3 |
Cost of inventories included in purchase of goods and services | 739.8 | 444.2 | 470.7 |
Write-downs of inventories | $ 3.8 | $ 3.1 | $ 2 |
FINANCIAL EXPENSES (Details)
FINANCIAL EXPENSES (Details) - CAD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
FINANCIAL EXPENSES | |||
Total financial expenses | $ 331 | $ 244.6 | $ 232.1 |
Third parties | |||
FINANCIAL EXPENSES | |||
Interest on long-term debt | 366.1 | 235.3 | 228 |
Amortization of financing costs | 8 | 5.8 | 6.1 |
Interest on lease liabilities | 16.2 | 5.3 | 5.4 |
Interest on net defined benefit liability | 0.9 | 3.1 | 5.4 |
(Gain) loss on foreign currency translation of short-term monetary items | (0.6) | 2.8 | (1.1) |
Other | 4.3 | 0.5 | (3.7) |
Total financial expenses | 394.9 | 252.8 | 240.1 |
Affiliated corporations | |||
FINANCIAL EXPENSES | |||
Interest expense | 126.2 | 182.5 | 175.5 |
Dividend income | (127.5) | (184.4) | (177.4) |
Interest on lease liabilities | 1.3 | 1.5 | 1.7 |
Interest income | (63.9) | (7.8) | (7.8) |
Total financial expenses | $ (63.9) | $ (8.2) | $ (8) |
RESTRUCTURING, ACQUISITION CO_3
RESTRUCTURING, ACQUISITION COSTS AND OTHER (Details) - CAD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
RESTRUCTURING, ACQUISITION COSTS AND OTHER | |||
Restructuring | $ 4.9 | $ 3.9 | $ 12.3 |
Acquisition costs | 15.6 | 6.5 | |
Impairment of assets | 0.4 | 2.9 | 0.8 |
Other | (0.5) | (0.6) | (1.5) |
Total | $ 20.4 | $ 12.7 | $ 11.6 |
LOSS ON DEBT REFINANCING (Detai
LOSS ON DEBT REFINANCING (Details) $ in Millions, $ in Millions | 1 Months Ended | 12 Months Ended | ||
Jun. 03, 2021 CAD ($) | Jul. 31, 2021 CAD ($) | Dec. 31, 2021 CAD ($) | Jun. 03, 2021 USD ($) | |
LOSS ON DEBT REFINANCING | ||||
Net loss | $ 40.1 | |||
Gain from hedging contracts | $ 1 | |||
Senior note 5.000% July 2022 | ||||
LOSS ON DEBT REFINANCING | ||||
Principal amount | $ 800 | |||
Annual nominal interest rate | 5% | |||
Percentage of principal amount redeemed | 104.002% | |||
Net loss | $ 40.1 | |||
Gain from hedging contracts | $ 1 | |||
Cash consideration of redemption of senior notes and related hedging contracts | $ 838.1 |
INCOME TAXES - Reconciliation o
INCOME TAXES - Reconciliation of income tax expense (Details) - CAD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
INCOME TAXES | |||
Domestic statutory tax rate (in percent) | 26.50% | 26.50% | 26.50% |
Income taxes at domestic statutory tax rate | $ 274.3 | $ 253.1 | $ 231.5 |
(Reduction) increase resulting from: | |||
Non-deductible charges, non-taxable income and differences between current and future tax rates | 0.1 | (0.5) | (5.7) |
Tax consolidation transactions (note 25) | (33.8) | (48.9) | (47) |
Other | (2.9) | (5.8) | 1.5 |
Income taxes | $ 237.7 | $ 197.9 | $ 180.3 |
INCOME TAXES - Components of de
INCOME TAXES - Components of deferred income tax (Details) - CAD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
INCOME TAXES | |||
Deferred tax liability, net | $ (759.2) | $ (715.5) | $ (762.7) |
Deferred income tax expense | 24.6 | (65.5) | (55.2) |
Loss carryforwards | |||
INCOME TAXES | |||
Deferred tax liability, net | 98.8 | ||
Deferred income tax expense | 0.9 | ||
Decommissioning obligations | |||
INCOME TAXES | |||
Deferred tax liability, net | 37.6 | 15.6 | |
Deferred income tax expense | (0.3) | ||
Defined benefit plans | |||
INCOME TAXES | |||
Deferred tax liability, net | 4.8 | 3.4 | |
Deferred income tax expense | (3.1) | (2.3) | |
Contract assets. | |||
INCOME TAXES | |||
Deferred tax liability, net | (45.2) | (18.3) | |
Deferred income tax expense | 13.8 | (22.9) | (24.3) |
Property, plant and equipment | |||
INCOME TAXES | |||
Deferred tax liability, net | (414.3) | (400.7) | |
Deferred income tax expense | 8.3 | (34.8) | (24.4) |
Goodwill, intangible assets and other assets | |||
INCOME TAXES | |||
Deferred tax liability, net | (449.1) | (323.9) | |
Deferred income tax expense | 19.2 | (7.7) | 7.4 |
Long-term debt and derivative financial instruments | |||
INCOME TAXES | |||
Deferred tax liability, net | (5) | (4.8) | |
Deferred income tax expense | 0.7 | 3.9 | (6.1) |
Other | |||
INCOME TAXES | |||
Deferred tax liability, net | 13.2 | 13.2 | |
Deferred income tax expense | $ (14.9) | $ (4) | $ (5.5) |
INCOME TAXES - Changes in defer
INCOME TAXES - Changes in deferred income tax liability (Details) - CAD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Changes in the net deferred income tax liability | ||
Balance at beginning of year | $ (715.5) | $ (762.7) |
Recognized in income as continuing operations | (24.6) | 65.5 |
Recognized in other comprehensive income | (1.2) | (14.3) |
Business acquisitions | (17.9) | (4) |
Balance at end of year | (759.2) | $ (715.5) |
Carryforwards loss for income tax to reduce future taxable income | $ 374.8 |
BUSINESS ACQUISITIONS (Details)
BUSINESS ACQUISITIONS (Details) $ in Millions | 9 Months Ended | ||||
Dec. 31, 2023 CAD ($) | Sep. 30, 2023 CAD ($) | Apr. 03, 2023 CAD ($) | Dec. 31, 2022 CAD ($) | Dec. 31, 2021 CAD ($) | |
BUSINESS ACQUISITIONS | |||||
Cash consideration paid | $ 6.7 | ||||
Freedom Mobile Inc. | |||||
BUSINESS ACQUISITIONS | |||||
Cash consideration paid | $ 2,171 | $ 2,070 | |||
Cash acquired | 103.2 | $ 103.2 | |||
Amount of revenues contributed | 850.1 | ||||
Amount of net income contributed | $ 94 | ||||
VMedia Inc. | |||||
BUSINESS ACQUISITIONS | |||||
Number of shares issued as consideration | 20,958 | ||||
Value of equity issued as consideration | $ 17.3 | ||||
Cash consideration paid | $ 1.8 | ||||
Cash acquired | $ 1.4 |
BUSINESS ACQUISITIONS - Schedul
BUSINESS ACQUISITIONS - Schedule of fair value of net assets acquired (Details) - CAD ($) $ in Millions | Dec. 31, 2023 | Apr. 03, 2023 | Dec. 31, 2021 |
Liabilities | |||
Cash consideration paid | $ 6.7 | ||
Freedom Mobile Inc. | |||
Assets | |||
Accounts receivable | $ 257.3 | ||
Other current assets | 181.3 | ||
Property, plant and equipment | 709.1 | ||
Intangible assets | 1,177.7 | ||
Right-of-use of assets | 226.2 | ||
Other assets | 65.8 | ||
Total | 2,617.4 | ||
Liabilities | |||
Accounts payable, accrued charges and provisions | (127.2) | ||
Other current liabilities | (94.2) | ||
Lease liabilities | (226.2) | ||
Deferred income taxes | (17.9) | ||
Other liabilities | (84.1) | ||
Total | (549.6) | ||
Net assets acquired | 2,067.8 | ||
Cash consideration paid | 2,171 | $ 2,070 | |
Cash acquired | (103.2) | $ (103.2) | |
Total | $ 2,067.8 |
ACCOUNTS RECEIVABLE (Details)
ACCOUNTS RECEIVABLE (Details) - CAD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
ACCOUNTS RECEIVABLE | ||
Trade | $ 835.3 | $ 551.6 |
Other | 127.9 | 67.5 |
Total | $ 963.2 | $ 619.1 |
PROPERTY, PLANT AND EQUIPMENT -
PROPERTY, PLANT AND EQUIPMENT - Cost (Details) - CAD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Changes in the net carrying amount of fixed assets | ||
Balance at the beginning of year | $ 2,610.4 | |
Balance at the end of year | 3,152.9 | $ 2,610.4 |
Land, buildings and leasehold improvements | ||
Changes in the net carrying amount of fixed assets | ||
Balance at the beginning of year | 129.3 | |
Balance at the end of year | 131 | 129.3 |
Furniture and equipment | ||
Changes in the net carrying amount of fixed assets | ||
Balance at the beginning of year | 220.5 | |
Balance at the end of year | 221 | 220.5 |
Telecommunication networks | ||
Changes in the net carrying amount of fixed assets | ||
Balance at the beginning of year | 2,189.8 | |
Balance at the end of year | 2,641.5 | 2,189.8 |
Projects under development | ||
Changes in the net carrying amount of fixed assets | ||
Balance at the beginning of year | 70.8 | |
Balance at the end of year | 159.4 | 70.8 |
Cost | ||
Changes in the net carrying amount of fixed assets | ||
Balance at the beginning of year | 8,726.4 | 8,553.8 |
Additions | 389.3 | 369.7 |
Net change in additions financed with non-cash balances | 0.7 | 2.6 |
Business acquisitions (note 7) | 709.1 | |
Retirement, disposals and other | (158.4) | (199.7) |
Balance at the end of year | 9,667.1 | 8,726.4 |
Cost | Land, buildings and leasehold improvements | ||
Changes in the net carrying amount of fixed assets | ||
Balance at the beginning of year | 228.5 | 233.8 |
Additions | 1.4 | 3.1 |
Business acquisitions (note 7) | 11.3 | |
Reclassification | 0.4 | (6.4) |
Retirement, disposals and other | (4.4) | (2) |
Balance at the end of year | 237.2 | 228.5 |
Cost | Furniture and equipment | ||
Changes in the net carrying amount of fixed assets | ||
Balance at the beginning of year | 1,316.6 | 1,383 |
Additions | 56.9 | 66.8 |
Net change in additions financed with non-cash balances | 0.2 | (2.6) |
Business acquisitions (note 7) | 16.7 | |
Reclassification | 2.9 | 6.8 |
Retirement, disposals and other | (82.2) | (137.4) |
Balance at the end of year | 1,311.1 | 1,316.6 |
Cost | Telecommunication networks | ||
Changes in the net carrying amount of fixed assets | ||
Balance at the beginning of year | 7,110.5 | 6,841.2 |
Additions | 205 | 257.1 |
Net change in additions financed with non-cash balances | 22.1 | (9.5) |
Business acquisitions (note 7) | 598 | |
Reclassification | 95.6 | 82 |
Retirement, disposals and other | (71.8) | (60.3) |
Balance at the end of year | 7,959.4 | 7,110.5 |
Cost | Projects under development | ||
Changes in the net carrying amount of fixed assets | ||
Balance at the beginning of year | 70.8 | 95.8 |
Additions | 126 | 42.7 |
Net change in additions financed with non-cash balances | (21.6) | 14.7 |
Business acquisitions (note 7) | 83.1 | |
Reclassification | (98.9) | (82.4) |
Balance at the end of year | $ 159.4 | $ 70.8 |
PROPERTY, PLANT AND EQUIPMENT_2
PROPERTY, PLANT AND EQUIPMENT - Accumulated depreciation and impairment loss (Details) - CAD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
PROPERTY, PLANT AND EQUIPMENT | |||
Balance at the beginning of year | $ 2,610.4 | ||
Depreciation | 551.2 | $ 516 | $ 542.4 |
Balance at the end of year | 3,152.9 | 2,610.4 | |
Land, buildings and leasehold improvements | |||
PROPERTY, PLANT AND EQUIPMENT | |||
Balance at the beginning of year | 129.3 | ||
Balance at the end of year | 131 | 129.3 | |
Furniture and equipment | |||
PROPERTY, PLANT AND EQUIPMENT | |||
Balance at the beginning of year | 220.5 | ||
Balance at the end of year | 221 | 220.5 | |
Telecommunication networks | |||
PROPERTY, PLANT AND EQUIPMENT | |||
Balance at the beginning of year | 2,189.8 | ||
Balance at the end of year | 2,641.5 | 2,189.8 | |
Projects under development | |||
PROPERTY, PLANT AND EQUIPMENT | |||
Balance at the beginning of year | 70.8 | ||
Balance at the end of year | 159.4 | 70.8 | |
Accumulated amortization and impairment losses | |||
PROPERTY, PLANT AND EQUIPMENT | |||
Balance at the beginning of year | (6,116) | (5,792.2) | |
Depreciation | 551.2 | 516 | |
Retirement, disposals and other | 153 | 192.2 | |
Balance at the end of year | (6,514.2) | (6,116) | (5,792.2) |
Accumulated amortization and impairment losses | Land, buildings and leasehold improvements | |||
PROPERTY, PLANT AND EQUIPMENT | |||
Balance at the beginning of year | (99.2) | (95) | |
Depreciation | 9.1 | 6.2 | |
Retirement, disposals and other | 2.1 | 2 | |
Balance at the end of year | (106.2) | (99.2) | (95) |
Accumulated amortization and impairment losses | Furniture and equipment | |||
PROPERTY, PLANT AND EQUIPMENT | |||
Balance at the beginning of year | (1,096.1) | (1,150.2) | |
Depreciation | 74.2 | 78.6 | |
Retirement, disposals and other | 80.2 | 132.7 | |
Balance at the end of year | (1,090.1) | (1,096.1) | (1,150.2) |
Accumulated amortization and impairment losses | Telecommunication networks | |||
PROPERTY, PLANT AND EQUIPMENT | |||
Balance at the beginning of year | (4,920.7) | (4,547) | |
Depreciation | 467.9 | 431.2 | |
Retirement, disposals and other | 70.7 | 57.5 | |
Balance at the end of year | $ (5,317.9) | $ (4,920.7) | $ (4,547) |
INTANGIBLE ASSETS (Details)
INTANGIBLE ASSETS (Details) $ in Millions | 12 Months Ended | ||
Nov. 30, 2023 item | Dec. 31, 2023 CAD ($) | Dec. 31, 2022 CAD ($) | |
Changes in the net carrying amount of intangible assets | |||
Balance at the beginning of the year | $ 2,162.7 | ||
Balance at the end of the year | 3,299.3 | $ 2,162.7 | |
Spectrum licences | |||
Changes in the net carrying amount of intangible assets | |||
Balance at the beginning of the year | 1,561.6 | ||
Balance at the end of the year | 2,363.2 | 1,561.6 | |
Number of blocks acquired | item | 305 | ||
spectrum licences and brand names | |||
Changes in the net carrying amount of intangible assets | |||
Intangible assets with indefinite useful life | 2,462 | 1,567.6 | |
Software | |||
Changes in the net carrying amount of intangible assets | |||
Balance at the beginning of the year | 537.3 | ||
Balance at the end of the year | 612.6 | 537.3 | |
Customer relationships, projects development and other | |||
Changes in the net carrying amount of intangible assets | |||
Balance at the beginning of the year | 63.8 | ||
Balance at the end of the year | 323.5 | 63.8 | |
Cost | |||
Changes in the net carrying amount of intangible assets | |||
Balance at the beginning of the year | 3,426.4 | 3,360.7 | |
Additions | 156.6 | 75.1 | |
Net change in additions financed with non-cash balances | (3.7) | 2.9 | |
Business acquisitions (note 7) | 1,177.7 | 17.8 | |
Retirement, disposals and other | (30) | (30.1) | |
Balance at the end of the year | 4,727 | 3,426.4 | |
Cost | Spectrum licences | |||
Changes in the net carrying amount of intangible assets | |||
Balance at the beginning of the year | 1,809.3 | 1,809.3 | |
Additions | 9.9 | ||
Business acquisitions (note 7) | 791.7 | ||
Balance at the end of the year | 2,610.9 | 1,809.3 | |
Cost | Software | |||
Changes in the net carrying amount of intangible assets | |||
Balance at the beginning of the year | 1,539.7 | 1,339.1 | |
Additions | 93.1 | 48 | |
Net change in additions financed with non-cash balances | (12.6) | 5.5 | |
Business acquisitions (note 7) | 89.9 | 11.7 | |
Reclassification | 72 | 165.2 | |
Retirement, disposals and other | (30) | (29.8) | |
Balance at the end of the year | 1,752.1 | 1,539.7 | |
Cost | Customer relationships, projects development and other | |||
Changes in the net carrying amount of intangible assets | |||
Balance at the beginning of the year | 77.4 | 212.3 | |
Additions | 53.6 | 27.1 | |
Net change in additions financed with non-cash balances | 8.9 | (2.6) | |
Business acquisitions (note 7) | 296.1 | 6.1 | |
Reclassification | (72) | (165.2) | |
Retirement, disposals and other | (0.3) | ||
Balance at the end of the year | 364 | 77.4 | |
Accumulated amortization and impairment losses | |||
Changes in the net carrying amount of intangible assets | |||
Balance at the beginning of the year | (1,263.7) | (1,148.7) | |
Amortization | 194 | 142.4 | |
Retirement, disposals and other | 30 | 27.4 | |
Balance at the end of the year | (1,427.7) | (1,263.7) | |
Accumulated amortization and impairment losses | Spectrum licences | |||
Changes in the net carrying amount of intangible assets | |||
Balance at the beginning of the year | (247.7) | (247.7) | |
Balance at the end of the year | (247.7) | (247.7) | |
Accumulated amortization and impairment losses | Software | |||
Changes in the net carrying amount of intangible assets | |||
Balance at the beginning of the year | (1,002.4) | (890.1) | |
Amortization | 167.1 | 139.4 | |
Retirement, disposals and other | 30 | 27.1 | |
Balance at the end of the year | (1,139.5) | (1,002.4) | |
Accumulated amortization and impairment losses | Customer relationships, projects development and other | |||
Changes in the net carrying amount of intangible assets | |||
Balance at the beginning of the year | (13.6) | (10.9) | |
Amortization | 26.9 | 3 | |
Retirement, disposals and other | 0.3 | ||
Balance at the end of the year | $ (40.5) | $ (13.6) |
RIGHT-OF-USE ASSETS - Changes (
RIGHT-OF-USE ASSETS - Changes (Details) - CAD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
RIGHT-OF-USE ASSETS | |||
Balance at beginning of year | $ 128.1 | ||
Depreciation | 98.8 | $ 41.2 | $ 38.7 |
Balance at end of year | 313 | 128.1 | |
Cost | |||
RIGHT-OF-USE ASSETS | |||
Balance at beginning of year | 381.5 | 352.8 | |
Additions financed with lease obligations | 56.9 | 45.3 | |
Business acquisitions | 226.2 | ||
Retirement and other | (16.9) | (16.6) | |
Balance at end of year | 647.7 | 381.5 | 352.8 |
Accumulated depreciation | |||
RIGHT-OF-USE ASSETS | |||
Balance at beginning of year | (253.4) | (229.9) | |
Depreciation | 98.8 | 41.2 | |
Retirement and other | (17.5) | (17.7) | |
Balance at end of year | $ (334.7) | $ (253.4) | $ (229.9) |
RIGHT-OF-USE ASSETS - Additiona
RIGHT-OF-USE ASSETS - Additional information (Details) - CAD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
RIGHT-OF-USE ASSETS | |||
Right-of-use assets | $ 313 | $ 128.1 | |
Depreciation | 98.8 | 41.2 | $ 38.7 |
Affiliated corporations | |||
RIGHT-OF-USE ASSETS | |||
Right-of-use assets | 12.4 | 15.5 | |
Depreciation | $ 4.2 | $ 4.3 |
GOODWILL - Changes (Details)
GOODWILL - Changes (Details) - CAD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Changes in the net carrying amount of goodwill | ||
Balance at beginning of year | $ 550.1 | |
Balance at end of year | 550.1 | $ 550.1 |
Cost | ||
Changes in the net carrying amount of goodwill | ||
Balance at beginning of year | 618.6 | 611.1 |
Business acquisitions | 0 | 7.5 |
Balance at end of year | 618.6 | 618.6 |
Accumulated impairment losses | ||
Changes in the net carrying amount of goodwill | ||
Balance at beginning of year | (68.5) | |
Balance at end of year | $ (68.5) | $ (68.5) |
GOODWILL - impairment tests (De
GOODWILL - impairment tests (Details) - Telecommunications | Dec. 31, 2023 | Dec. 31, 2022 |
Goodwill | ||
Percentage of pre-tax discount rate (WACC) | 10.80% | 10.50% |
Perpetual growth rate | 2% | 2% |
OTHER ASSETS (Details)
OTHER ASSETS (Details) - CAD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
OTHER ASSETS | |||
Equipment installments receivable | $ 648 | $ 431.3 | |
Contract costs | 231.7 | 175.4 | |
Contract assets | 171.9 | 69.1 | |
Other | 25 | 20.1 | |
Other assets | 1,076.6 | 695.9 | |
Less current portion of equipment installments receivable (included in "Accounts receivable") | (475.9) | (321.9) | |
Less current portion of contract costs (included in "Other current assets") | (126.8) | (75.9) | |
Less current portion of contract assets | (125.4) | (50.2) | |
Total | 348.5 | 247.9 | |
Impairment loss on contract assets | 2.8 | 9.9 | $ 17.1 |
Amortization of contract costs | $ 128.9 | $ 81.4 | $ 73.3 |
ACCOUNTS PAYABLE, ACCRUED CHA_3
ACCOUNTS PAYABLE, ACCRUED CHARGES AND PROVISIONS (Details) - CAD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
ACCOUNTS PAYABLE, ACCRUED CHARGES AND PROVISIONS | ||
Trade and accruals | $ 731.3 | $ 502.6 |
Salaries and employee benefits | 127.8 | 72.1 |
Interest payable | 52.2 | 42.9 |
Provisions and other | 9.6 | 11.9 |
Total | $ 920.9 | $ 629.5 |
LONG-TERM DEBT - Summary of lon
LONG-TERM DEBT - Summary of long-term debt (Details) $ in Millions, $ in Millions | 12 Months Ended | |||||
Dec. 31, 2023 CAD ($) | Dec. 31, 2023 USD ($) | Apr. 30, 2023 CAD ($) tranche | Dec. 31, 2022 CAD ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CAD ($) | |
LONG-TERM DEBT | ||||||
Long-term debt, before adjustments | $ 7,645.3 | $ 5,356.6 | ||||
Change in fair value related to hedged interest rate risk | (2.2) | (5.6) | ||||
Financing costs, net of amortization | (33.2) | (32.7) | ||||
Total financing costs net of amortization and changing in fair value related to hedge interest rate risk. | (35.4) | (38.3) | ||||
Total | 7,609.9 | 5,318.3 | $ 5,380.1 | |||
Less current portion | (1,480.6) | |||||
Total long-term debt | $ 6,129.3 | $ 4,484.5 | 5,318.3 | $ 2,298.5 | ||
Fair value of related hedging derivative assets (liabilities), net | $ 106.9 | $ 196.1 | ||||
Bank credit facility | ||||||
LONG-TERM DEBT | ||||||
Interest rate | 6.89% | 6.89% | ||||
Long-term debt, before adjustments | $ 2,419 | 77.5 | ||||
Pledged assets | 10,461.6 | 8,729.9 | ||||
Secured revolving credit facility matures in July 2026 | ||||||
LONG-TERM DEBT | ||||||
Principal amount | 2,000 | 1,500 | ||||
Borrowings | 361 | 77.5 | ||||
Secured term credit facility | ||||||
LONG-TERM DEBT | ||||||
Principal amount | $ 2,100 | |||||
Number of tranches for credit facility amount | tranche | 3 | |||||
Borrowings | 2,058 | |||||
New Unsecured On-Demand Credit Facilities | ||||||
LONG-TERM DEBT | ||||||
Borrowings | 290.9 | |||||
Senior Notes | ||||||
LONG-TERM DEBT | ||||||
Long-term debt, before adjustments | $ 5,226.3 | $ 5,279.1 | ||||
Senior Notes | Bottom of range | ||||||
LONG-TERM DEBT | ||||||
Redemption period | 3 years | |||||
Senior Notes | Top of range | ||||||
LONG-TERM DEBT | ||||||
Redemption period | 5 years |
LONG-TERM DEBT - Senior notes (
LONG-TERM DEBT - Senior notes (Details) $ in Millions, $ in Millions | 1 Months Ended | 12 Months Ended | ||||
Jun. 30, 2021 CAD ($) | Jun. 30, 2021 USD ($) | Jan. 31, 2021 CAD ($) | Dec. 31, 2023 CAD ($) | Dec. 31, 2021 CAD ($) | Dec. 31, 2023 USD ($) | |
LONG-TERM DEBT | ||||||
Net proceeds from issuance of senior notes | $ 2,092.5 | $ 1,986.8 | ||||
5.375% Senior Notes, due June 2024 | ||||||
LONG-TERM DEBT | ||||||
Principal amount | $ 600 | |||||
Annual nominal interest rate | 5.375% | 5.375% | ||||
5.625% Senior Notes, due June 2025 | ||||||
LONG-TERM DEBT | ||||||
Principal amount | $ 400 | |||||
Annual nominal interest rate | 5.625% | 5.625% | ||||
5.750% Senior Notes, due January 2026 | ||||||
LONG-TERM DEBT | ||||||
Principal amount | $ 375 | |||||
Annual nominal interest rate | 5.75% | 5.75% | ||||
5.125% Senior Notes due April 2027 | ||||||
LONG-TERM DEBT | ||||||
Principal amount | $ 600 | |||||
Annual nominal interest rate | 5.125% | 5.125% | ||||
4.500% Senior Notes, due January 2030 | ||||||
LONG-TERM DEBT | ||||||
Principal amount | $ 800 | |||||
Annual nominal interest rate | 4.50% | 4.50% | ||||
3.125% Senior Notes, due January 2031 | ||||||
LONG-TERM DEBT | ||||||
Principal amount | $ 650 | |||||
Annual nominal interest rate | 3.125% | 3.125% | ||||
Net proceeds from issuance of senior notes | $ 644 | |||||
Financing costs | $ 6 | |||||
3.625% Senior Notes, due June 2028 | ||||||
LONG-TERM DEBT | ||||||
Principal amount | $ 750 | |||||
Annual nominal interest rate | 3.625% | 3.625% | ||||
Net proceeds from issuance of senior notes | $ 743.2 | |||||
Financing costs | $ 6.8 | |||||
3.625% Senior Notes, due June 2029 | ||||||
LONG-TERM DEBT | ||||||
Principal amount | $ 500 | |||||
Annual nominal interest rate | 3.625% | 3.625% | ||||
Net proceeds from issuance of senior notes | $ 599.6 | |||||
Financing costs | $ 5.8 |
LONG-TERM DEBT - Principal repa
LONG-TERM DEBT - Principal repayments of long-term debt (Details) $ in Millions | Dec. 31, 2023 CAD ($) |
LONG-TERM DEBT | |
Long-term debt | $ 7,645.3 |
2024 | |
LONG-TERM DEBT | |
Long-term debt | 1,480.6 |
2025 | |
LONG-TERM DEBT | |
Long-term debt | 400 |
2026 | |
LONG-TERM DEBT | |
Long-term debt | 1,422 |
2027 | |
LONG-TERM DEBT | |
Long-term debt | 1,480.6 |
2028 | |
LONG-TERM DEBT | |
Long-term debt | 750 |
2029 and thereafter | |
LONG-TERM DEBT | |
Long-term debt | $ 2,112.1 |
LONG-TERM DEBT - Changes in lon
LONG-TERM DEBT - Changes in long-term debt (Details) - CAD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
LONG-TERM DEBT | ||
Balance at beginning of year | $ 5,318.3 | $ 5,380.1 |
Net change under revolving facility, net of financing costs | 285 | (209.6) |
Issuance of long-term debt, net of financing costs | 2,092.5 | |
Foreign currency translation | (97.3) | 155.9 |
Amortization of financing costs | 8 | 5.8 |
Change in fair value related to hedged interest rate risk | 3.4 | (13.9) |
Balance at end of year | $ 7,609.9 | $ 5,318.3 |
LEASE LIABILITIES - Changes in
LEASE LIABILITIES - Changes in lease liabilities (Details) - CAD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
LEASE LIABILITIES | ||
Balance at beginning of year | $ 158.3 | $ 153.8 |
Lease obligations financing right-of-use assets | 56.9 | 45.3 |
Business acquisitions | 226.2 | |
Repayments | (94.8) | (42.1) |
Other | (0.5) | 1.3 |
Balance at end of year | 346.1 | 158.3 |
Less current portion | (99.3) | (37.3) |
Lease liabilities, non-current | $ 246.8 | $ 121 |
Bottom of range | ||
LEASE LIABILITIES | ||
Interest rates on lease liabilities (as a percent) | 1.90% | 1.90% |
Top of range | ||
LEASE LIABILITIES | ||
Interest rates on lease liabilities (as a percent) | 8.50% | 8.50% |
Affiliated Entity | ||
LEASE LIABILITIES | ||
Balance at beginning of year | $ 25.4 | |
Balance at end of year | $ 20.1 | $ 25.4 |
LEASE LIABILITIES - Repayments
LEASE LIABILITIES - Repayments of lease liabilities (Details) $ in Millions | Dec. 31, 2023 CAD ($) |
LEASE LIABILITIES | |
Lease liabilities | $ 346.1 |
2024 | |
LEASE LIABILITIES | |
Lease liabilities | 99.3 |
2025 | |
LEASE LIABILITIES | |
Lease liabilities | 80.3 |
2026 | |
LEASE LIABILITIES | |
Lease liabilities | 62.3 |
2027 | |
LEASE LIABILITIES | |
Lease liabilities | 44.4 |
2028 | |
LEASE LIABILITIES | |
Lease liabilities | 27.5 |
2029 and thereafter | |
LEASE LIABILITIES | |
Lease liabilities | $ 32.3 |
OTHER LIABILITIES (Details)
OTHER LIABILITIES (Details) - CAD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
OTHER LIABILITIES | ||
Decommissioning obligation | $ 143.5 | $ 59 |
Defined benefit plans | 19 | 20.6 |
Other | 45.1 | 44.7 |
Total other liabilities | $ 207.6 | $ 124.3 |
CAPITAL STOCK - Authorized capi
CAPITAL STOCK - Authorized capital stock (Details) $ in Millions | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 CAD ($) | |
Quebecor Media | ||
CAPITAL STOCK | ||
Number of shares issued as consideration | 20,958 | |
Value of equity issued as consideration | $ 17.3 | |
Series B | ||
CAPITAL STOCK | ||
Fixed monthly non-cumulative dividend | 1% | |
Series C | ||
CAPITAL STOCK | ||
Fixed monthly non-cumulative dividend | 1% | |
Series D | ||
CAPITAL STOCK | ||
Fixed monthly non-cumulative dividend | 1% | |
Series E | ||
CAPITAL STOCK | ||
Fixed monthly non-cumulative dividend | 1% | |
Series F | ||
CAPITAL STOCK | ||
Fixed monthly non-cumulative dividend | 1% | |
Series H | ||
CAPITAL STOCK | ||
Fixed monthly non-cumulative dividend | 1% | |
Series G | ||
CAPITAL STOCK | ||
Fixed annual cumulative preferred dividend | 11.25% |
CAPITAL STOCK - Issued and outs
CAPITAL STOCK - Issued and outstanding capital stock (Details) - CAD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Common shares, Amount | |||
Beginning of year | $ (230.8) | $ (338.3) | $ 188.5 |
Reduction of paid-up capital | (720) | ||
Issuance of common shares | 17.3 | ||
End of year | $ 155.9 | $ (230.8) | $ (338.3) |
Capital stock | |||
Common shares, Number | |||
Beginning of year | 10,739,285 | 10,718,327 | |
Issuance of common shares | 0 | 20,958 | |
End of year | 10,739,285 | 10,739,285 | 10,718,327 |
Common shares, Amount | |||
Beginning of year | $ 312.9 | $ 295.6 | $ 1,015.6 |
Reduction of paid-up capital | (720) | ||
Issuance of common shares | 17.3 | ||
End of year | $ 312.9 | $ 312.9 | $ 295.6 |
STOCK-BASED COMPENSATION PLAN_2
STOCK-BASED COMPENSATION PLANS - Ultimate parent corporation stock option plan (Details) - Ultimate parent corporation stock option plan | 12 Months Ended |
Dec. 31, 2023 shares | |
STOCK-BASED COMPENSATION PLANS | |
Exercisable period | 10 years |
Class B | |
STOCK-BASED COMPENSATION PLANS | |
Number of shares authorized to issue under stock-based compensation plans | 26,000,000 |
One year | |
STOCK-BASED COMPENSATION PLANS | |
Percentage of stock options vested | 33.33% |
Vesting period of share based awards (in years) | 1 year |
Two years | |
STOCK-BASED COMPENSATION PLANS | |
Percentage of stock options vested | 66.67% |
Vesting period of share based awards (in years) | 2 years |
Three years | |
STOCK-BASED COMPENSATION PLANS | |
Percentage of stock options vested | 100% |
Vesting period of share based awards (in years) | 3 years |
Annual vesting percent of share based awards | 33.33% |
STOCK-BASED COMPENSATION PLAN_3
STOCK-BASED COMPENSATION PLANS - Ultimate parent corporation outstanding options (Details) - Ultimate parent corporation stock option plan | 12 Months Ended | |
Dec. 31, 2023 Option $ / shares | Dec. 31, 2022 Option $ / shares | |
STOCK-BASED COMPENSATION PLANS | ||
Options, balance at beginning of year | Option | 1,048,934 | 543,934 |
Options, granted | Option | 1,845,000 | 650,000 |
Options, transferred | Option | 30,000 | |
Options, exercised | Option | (8,733) | (16,666) |
Options, cancelled | Option | (143,641) | (158,334) |
Options, balance at end of year | Option | 2,741,560 | 1,048,934 |
Number of vested options | Option | 245,793 | 125,397 |
Weighted average exercise price, balance at beginning of year (in CAD per share) | $ 29.06 | $ 30.58 |
Weighted average exercise price, granted (in CAD per share) | 32.71 | 27.85 |
Weighted average exercise price, transferred (in CAD per share) | 32.66 | |
Weighted average exercise price, exercised (in CAD per share) | 29.42 | 26.52 |
Weighted average exercise price, cancelled (in CAD per share) | 30.58 | 30.27 |
Weighted average exercise price, balance at end of year (in CAD per share) | 31.43 | 29.06 |
Weighted average exercise price, vested options (in CAD per share) | $ 29.61 | $ 28.48 |
Weighted average years to maturity | 8 years 8 months 12 days | |
Bottom of range | ||
STOCK-BASED COMPENSATION PLANS | ||
Exercise price (in dollars per share) | $ 26.52 | |
Top of range | ||
STOCK-BASED COMPENSATION PLANS | ||
Exercise price (in dollars per share) | $ 34.28 |
STOCK-BASED COMPENSATION PLAN_4
STOCK-BASED COMPENSATION PLANS - Assumptions in estimating the fair value of awards (Details) - Ultimate parent corporation stock option plan - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
STOCK-BASED COMPENSATION PLANS | ||
Risk-free interest rate | 3.38% | 3.60% |
Distribution yield | 3.81% | 3.97% |
Expected volatility | 22.73% | 22.07% |
Expected remaining life | 4 | 4.4 |
STOCK-BASED COMPENSATION PLAN_5
STOCK-BASED COMPENSATION PLANS - Liability and expense (Details) - CAD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
STOCK-BASED COMPENSATION PLANS | |||
Liability for all vested options under intrinsic value | $ 0.6 | $ 0.3 | |
Consolidated charge related to stock-based compensation | $ 2.9 | $ 0.9 | |
Reversal of expense related to stock based compensation | $ 1.8 |
ACCUMULATED OTHER COMPREHENSI_3
ACCUMULATED OTHER COMPREHENSIVE LOSS ATTRIBUTABLE TO SHAREHOLDER (Details) - CAD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
ACCUMULATED OTHER COMPREHENSIVE LOSS ATTRIBUTABLE TO SHAREHOLDER | |||
Beginning of year | $ (230.8) | $ (338.3) | $ 188.5 |
Other comprehensive (loss) income | 10.3 | 4.1 | 84.9 |
End of year | 155.9 | (230.8) | (338.3) |
Accumulated other comprehensive loss | |||
ACCUMULATED OTHER COMPREHENSIVE LOSS ATTRIBUTABLE TO SHAREHOLDER | |||
Beginning of year | (16.7) | (20.8) | (105.7) |
Other comprehensive (loss) income | 10.3 | 4.1 | 84.9 |
End of year | (6.4) | (16.7) | (20.8) |
Cash flow hedges | |||
ACCUMULATED OTHER COMPREHENSIVE LOSS ATTRIBUTABLE TO SHAREHOLDER | |||
Beginning of year | (26.3) | 26.4 | 20.8 |
Other comprehensive (loss) income | 5.6 | (52.7) | 5.6 |
End of year | $ (20.7) | (26.3) | 26.4 |
Expected reversal period | 5 years 6 months | ||
Defined benefit plans | |||
ACCUMULATED OTHER COMPREHENSIVE LOSS ATTRIBUTABLE TO SHAREHOLDER | |||
Beginning of year | $ 9.6 | (47.2) | (126.5) |
Other comprehensive (loss) income | 4.7 | 56.8 | 79.3 |
End of year | $ 14.3 | $ 9.6 | $ (47.2) |
COMMITMENTS (Details)
COMMITMENTS (Details) $ in Millions | Dec. 31, 2023 CAD ($) |
2024 | |
COMMITMENTS | |
Minimum payments | $ 769.9 |
2025 to 2028 | |
COMMITMENTS | |
Minimum payments | 1,404.8 |
2029 and thereafter | |
COMMITMENTS | |
Minimum payments | $ 27.1 |
FINANCIAL INSTRUMENTS AND FIN_3
FINANCIAL INSTRUMENTS AND FINANCIAL RISK MANAGEMENT - Foreign exchange forward contracts (Details) - Forward contract - Less than 1 year $ in Millions, $ in Millions | 12 Months Ended | |
Dec. 31, 2023 CAD ($) $ / $ | Dec. 31, 2023 USD ($) $ / $ | |
FINANCIAL INSTRUMENTS AND FINANCIAL RISK MANAGEMENT | ||
Average exchange rate | $ / $ | 1.3430 | 1.3430 |
Notional amount sold | $ 96 | |
National amount bought | $ 71.5 |
FINANCIAL INSTRUMENTS AND FIN_4
FINANCIAL INSTRUMENTS AND FINANCIAL RISK MANAGEMENT - Interest rate swaps (Details) - Interest rate swap contract - 2027 $ in Millions | Dec. 31, 2023 CAD ($) |
FINANCIAL INSTRUMENTS AND FINANCIAL RISK MANAGEMENT | |
Notional amount | $ 700 |
Fixed rate | 3.503% |
FINANCIAL INSTRUMENTS AND FIN_5
FINANCIAL INSTRUMENTS AND FINANCIAL RISK MANAGEMENT - Cross-currency swaps (Details) - Cross-currency swaps $ in Millions | 12 Months Ended |
Dec. 31, 2023 USD ($) $ / $ | |
Senior Notes 5.375 percent due 2024 | Period covered, 2014 to 2024 | |
FINANCIAL INSTRUMENTS AND FINANCIAL RISK MANAGEMENT | |
Interest rate | 5.375% |
Notional amount | $ | 158.6 |
Average exchange rate | $ / $ | 1.1034 |
Senior Notes 5.375 percent due 2024 | Period covered, 2014 to 2024 | Bankers' acceptance 3 months | |
FINANCIAL INSTRUMENTS AND FINANCIAL RISK MANAGEMENT | |
Derivative interest rate basis spread on variable rate | 2.67% |
Senior Notes 5.375 percent due 2024 | Period covered, 2017 to 2024 | |
FINANCIAL INSTRUMENTS AND FINANCIAL RISK MANAGEMENT | |
Interest rate | 5.375% |
Notional amount | $ | 441.4 |
Derivative interest rate | 5.62% |
Average exchange rate | $ / $ | 1.1039 |
Senior Notes 5.125 percent due 2027 | Period covered, 2017 to 2027 | |
FINANCIAL INSTRUMENTS AND FINANCIAL RISK MANAGEMENT | |
Interest rate | 5.125% |
Notional amount | $ | 600 |
Derivative interest rate | 4.82% |
Average exchange rate | $ / $ | 1.3407 |
Senior Notes 3.625 percent due 2029 | Period covered 2021 To 2029 | |
FINANCIAL INSTRUMENTS AND FINANCIAL RISK MANAGEMENT | |
Interest rate | 3.625% |
Notional amount | $ | 500 |
Derivative interest rate | 4.04% |
Average exchange rate | $ / $ | 1.2109 |
Secured term credit facility | Hedging Instrument Period Covered One Month | |
FINANCIAL INSTRUMENTS AND FINANCIAL RISK MANAGEMENT | |
Notional amount | $ | 1,554 |
Average exchange rate | $ / $ | 1.3514 |
Secured term credit facility | Hedging Instrument Period Covered One Month | Bankers Acceptance One Month | |
FINANCIAL INSTRUMENTS AND FINANCIAL RISK MANAGEMENT | |
Derivative interest rate basis spread on variable rate | 0.98% |
Secured revolving credit facility matures in July 2026 | Hedging Instrument Period Covered One Month | |
FINANCIAL INSTRUMENTS AND FINANCIAL RISK MANAGEMENT | |
Notional amount | $ | 134 |
Average exchange rate | $ / $ | 1.3435 |
Secured revolving credit facility matures in July 2026 | Hedging Instrument Period Covered One Month | Bankers Acceptance One Month | |
FINANCIAL INSTRUMENTS AND FINANCIAL RISK MANAGEMENT | |
Derivative interest rate basis spread on variable rate | 1.07% |
FINANCIAL INSTRUMENTS AND FIN_6
FINANCIAL INSTRUMENTS AND FINANCIAL RISK MANAGEMENT - Carrying value and fair value of long-term debt and derivative financial instruments (Details) - CAD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Carrying value | ||
FINANCIAL INSTRUMENTS AND FINANCIAL RISK MANAGEMENT | ||
Long-term debt | $ (7,645.3) | $ (5,356.6) |
Carrying value | Forward contract | ||
FINANCIAL INSTRUMENTS AND FINANCIAL RISK MANAGEMENT | ||
Derivative financial asset (liability) | (1.5) | 3.4 |
Carrying value | Cross-currency swaps | ||
FINANCIAL INSTRUMENTS AND FINANCIAL RISK MANAGEMENT | ||
Derivative financial asset (liability) | 106.9 | 196.1 |
Carrying value | Interest rate swap contract | ||
FINANCIAL INSTRUMENTS AND FINANCIAL RISK MANAGEMENT | ||
Derivative financial asset (liability) | 5.4 | |
Fair value | ||
FINANCIAL INSTRUMENTS AND FINANCIAL RISK MANAGEMENT | ||
Long-term debt | (7,368.1) | (4,800.7) |
Fair value | Cash flow hedges | ||
FINANCIAL INSTRUMENTS AND FINANCIAL RISK MANAGEMENT | ||
Derivative financial asset (liability) | 78 | 165.5 |
Fair value | Fair value hedges | ||
FINANCIAL INSTRUMENTS AND FINANCIAL RISK MANAGEMENT | ||
Derivative financial asset (liability) | 32.8 | 34 |
Fair value | Forward contract | ||
FINANCIAL INSTRUMENTS AND FINANCIAL RISK MANAGEMENT | ||
Derivative financial asset (liability) | (1.5) | 3.4 |
Fair value | Cross-currency swaps | ||
FINANCIAL INSTRUMENTS AND FINANCIAL RISK MANAGEMENT | ||
Derivative financial asset (liability) | 106.9 | $ 196.1 |
Fair value | Interest rate swap contract | ||
FINANCIAL INSTRUMENTS AND FINANCIAL RISK MANAGEMENT | ||
Derivative financial asset (liability) | $ 5.4 |
FINANCIAL INSTRUMENTS AND FIN_7
FINANCIAL INSTRUMENTS AND FINANCIAL RISK MANAGEMENT - Credit risk management (Details) - Credit risk management - CAD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
FINANCIAL INSTRUMENTS AND FINANCIAL RISK MANAGEMENT | ||
Gross carrying amounts of financial assets represent the maximum credit exposure | $ 1,237.9 | $ 742.3 |
90 days past due | ||
FINANCIAL INSTRUMENTS AND FINANCIAL RISK MANAGEMENT | ||
Trade receivables past due (as a percent) | 4.70% | 1.60% |
Trade receivables past due which had an established allowance for doubtful accounts (as a percent) | 3.50% | 2.80% |
FINANCIAL INSTRUMENTS AND FIN_8
FINANCIAL INSTRUMENTS AND FINANCIAL RISK MANAGEMENT - Changes to the provision for expected credit losses (Details) - Trade receivables - Accumulated impairment losses - CAD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
FINANCIAL INSTRUMENTS AND FINANCIAL RISK MANAGEMENT | ||
Balance at beginning of year | $ 12.1 | $ 14.4 |
Changes in expected credit losses charged to income | 35.6 | 16.3 |
Business acquisitions | 36.3 | |
Write-off | (25.4) | (18.6) |
Balance at end of year | $ 58.6 | $ 12.1 |
FINANCIAL INSTRUMENTS AND FIN_9
FINANCIAL INSTRUMENTS AND FINANCIAL RISK MANAGEMENT - Liquidity risk management (Details) - CAD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
FINANCIAL INSTRUMENTS AND FINANCIAL RISK MANAGEMENT | ||
Accounts payable and accrued charges | $ 913.4 | |
Amounts payable to affiliated corporations | 91 | |
Long-term debt | 7,645.3 | |
Interest payments on long-term debt | 1,171.3 | |
Lease liabilities | 346.1 | |
Interest payments on lease liabilities | 59.8 | |
Derivative financial instruments | (134.6) | |
Total | 10,092.3 | |
Less than 1 year | ||
FINANCIAL INSTRUMENTS AND FINANCIAL RISK MANAGEMENT | ||
Accounts payable and accrued charges | 913.4 | |
Amounts payable to affiliated corporations | 91 | |
Long-term debt | 1,480.6 | |
Interest payments on long-term debt | 308.7 | |
Lease liabilities | 99.3 | |
Interest payments on lease liabilities | 17.7 | |
Derivative financial instruments | (87.7) | |
Total | 2,823 | |
1-3 years | ||
FINANCIAL INSTRUMENTS AND FINANCIAL RISK MANAGEMENT | ||
Long-term debt | 1,822 | |
Interest payments on long-term debt | 517.2 | |
Lease liabilities | 142.6 | |
Interest payments on lease liabilities | 25.3 | |
Total | 2,507.1 | |
3-5 years | ||
FINANCIAL INSTRUMENTS AND FINANCIAL RISK MANAGEMENT | ||
Long-term debt | 2,230.6 | |
Interest payments on long-term debt | 237.3 | |
Lease liabilities | 71.9 | |
Interest payments on lease liabilities | 11.8 | |
Derivative financial instruments | 9.8 | |
Total | 2,561.4 | |
5 years or more | ||
FINANCIAL INSTRUMENTS AND FINANCIAL RISK MANAGEMENT | ||
Long-term debt | 2,112.1 | |
Interest payments on long-term debt | 108.1 | |
Lease liabilities | 32.3 | |
Interest payments on lease liabilities | 5 | |
Derivative financial instruments | (56.7) | |
Total | $ 2,200.8 | |
Liquidity risk management | ||
FINANCIAL INSTRUMENTS AND FINANCIAL RISK MANAGEMENT | ||
Weighted average term of the corporation's consolidated debt | 3 years 6 months | 5 years |
FINANCIAL INSTRUMENTS AND FI_10
FINANCIAL INSTRUMENTS AND FINANCIAL RISK MANAGEMENT - Market risk (Details) - CAD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Increase of $0.10 | ||
FINANCIAL INSTRUMENTS AND FINANCIAL RISK MANAGEMENT | ||
Income | $ 0.2 | |
Other comprehensive income | 6.7 | |
Decrease of $0.10 | ||
FINANCIAL INSTRUMENTS AND FINANCIAL RISK MANAGEMENT | ||
Income | (0.2) | |
Other comprehensive income | (6.7) | |
Variance of $0.10 in the foreign currency exchange rate | ||
FINANCIAL INSTRUMENTS AND FINANCIAL RISK MANAGEMENT | ||
Unhedged purchase of goods and services | 5.9 | |
Unhedged acquisitions of tangible and intangible assets | $ 5.8 | |
Interest rate risk | ||
FINANCIAL INSTRUMENTS AND FINANCIAL RISK MANAGEMENT | ||
Long-term debt, fixed-rate debt (in percent) | 67.90% | 95.10% |
Long-term debt, floating-rate debt (in percent) | 32.10% | 4.90% |
100 basis-point variance | ||
FINANCIAL INSTRUMENTS AND FINANCIAL RISK MANAGEMENT | ||
Estimated sensitivity on interest payments | $ 24 |
FINANCIAL INSTRUMENTS AND FI_11
FINANCIAL INSTRUMENTS AND FINANCIAL RISK MANAGEMENT - Capital management (Details) - CAD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
FINANCIAL INSTRUMENTS AND FINANCIAL RISK MANAGEMENT | ||||
Bank indebtedness | $ 0.4 | |||
Long-term debt | $ 7,609.9 | 5,318.3 | $ 5,380.1 | |
Lease liabilities | 346.1 | 158.3 | 153.8 | |
Derivative financial instruments | (110.8) | (199.5) | ||
Cash and cash equivalents | (8) | (1.8) | ||
Promissory note to the parent corporation | (996) | (160) | ||
Net liabilities | 6,841.2 | 5,115.7 | ||
Equity | $ 155.9 | $ (230.8) | $ (338.3) | $ 188.5 |
RELATED PARTY TRANSACTIONS - Co
RELATED PARTY TRANSACTIONS - Compensation of key management personnel (Details) - CAD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
RELATED PARTY TRANSACTIONS | |||
Salaries and short-term benefits | $ 2 | $ 2.7 | $ 3.2 |
Share-based compensation | 1.5 | 0.5 | (1.3) |
Termination and other long-term benefits | 0.1 | 0.6 | 0.9 |
Total compensation | $ 3.6 | $ 3.8 | $ 2.8 |
RELATED PARTY TRANSACTIONS - Op
RELATED PARTY TRANSACTIONS - Operating transactions (Details) - CAD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Ultimate parent and parent corporation | |||
RELATED PARTY TRANSACTIONS | |||
Revenues | $ 0.4 | $ 0.4 | $ 0.4 |
Purchase of goods and services | 2.6 | 10.2 | 10.2 |
Operating expenses recovered | (1.8) | (2) | (2.3) |
Corporations under common control | |||
RELATED PARTY TRANSACTIONS | |||
Revenues | 4.1 | 4.7 | 5.3 |
Purchase of goods and services | 147.5 | 112.3 | 109.7 |
Operating expenses recovered | 0.2 | (0.7) | 0.4 |
Other affiliated corporations | |||
RELATED PARTY TRANSACTIONS | |||
Purchase of goods and services | 30.5 | 21.9 | 10.6 |
Acquisition of property, plant and equipment and intangible assets | $ 11 | $ 8.6 | $ 4.6 |
RELATED PARTY TRANSACTIONS - Ma
RELATED PARTY TRANSACTIONS - Management arrangements (Details) - CAD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
RELATED PARTY TRANSACTIONS | |||
Management fees | $ 33.4 | $ 27.2 | $ 40.5 |
RELATED PARTY TRANSACTIONS - Ac
RELATED PARTY TRANSACTIONS - Accounts receivable from affiliated corporations (Details) - CAD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
RELATED PARTY TRANSACTIONS | ||
Total receivables | $ 25.1 | $ 13.6 |
Ultimate parent and parent corporation | ||
RELATED PARTY TRANSACTIONS | ||
Accounts receivable | 3.5 | 2.4 |
Dividends receivable | 5 | |
Interest receivable | 14.5 | 2.6 |
Corporations under common control | ||
RELATED PARTY TRANSACTIONS | ||
Accounts receivable | $ 7.1 | $ 3.6 |
RELATED PARTY TRANSACTIONS - _2
RELATED PARTY TRANSACTIONS - Accounts payable to affiliated corporations (Details) - CAD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
RELATED PARTY TRANSACTIONS | ||
Total payables | $ 91 | $ 95.5 |
Ultimate parent and parent corporation | ||
RELATED PARTY TRANSACTIONS | ||
Accounts payable | 36.8 | 55.4 |
Interest payable | 5 | |
Corporations under common control | ||
RELATED PARTY TRANSACTIONS | ||
Accounts payable | $ 54.2 | $ 35.1 |
RELATED PARTY TRANSACTIONS - Pr
RELATED PARTY TRANSACTIONS - Promissory note receivable (Details) - Quebecor Media - CAD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
RELATED PARTY TRANSACTIONS | ||
Promissory note receivable | $ 836 | $ 160 |
Interest rate on Promissory Note | 7% | 4.90% |
RELATED PARTY TRANSACTIONS - Ta
RELATED PARTY TRANSACTIONS - Tax consolidation transactions (Details) - CAD ($) $ in Millions | 12 Months Ended | ||||||
Nov. 01, 2023 | Dec. 07, 2022 | Oct. 17, 2022 | Dec. 10, 2021 | Oct. 01, 2021 | Dec. 31, 2023 | Dec. 31, 2022 | |
Related Parties | |||||||
Subordinated loan from the parent corporation | $ (1,595) | ||||||
Repayment of subordinated loan | $ 1,595 | ||||||
Parent | |||||||
Related Parties | |||||||
Subordinated loan from the parent corporation | (1,595) | ||||||
Subordinated loan granted during the period | $ 2,113 | $ 1,473 | $ 1,595 | ||||
Interest rate on subordinated loan (in percentage) | 10.50% | 8.50% | 9.50% | ||||
Parent | Series C preference shares | |||||||
Related Parties | |||||||
Repayment of subordinated loan | $ 1,595 | ||||||
Parent | Series M preference shares | |||||||
Related Parties | |||||||
Repayment of subordinated loan | $ 1,473 | ||||||
Parent | Series N Preference Shares | |||||||
Related Parties | |||||||
Repayment of subordinated loan | $ 2,113 | ||||||
9346-9963 Quebec Inc | Series C preference shares | |||||||
Related Parties | |||||||
Number of preferred shares redeemed | 1,595,000 | 1,595,000 | |||||
Preferred stock annual dividend rate (in percentage) | 9.60% | ||||||
Payments for redemption of preferred stock in cash | $ 1,595 | ||||||
9346-9963 Quebec Inc | Series M preference shares | |||||||
Related Parties | |||||||
Investment in an affiliated corporation | $ 1,473 | ||||||
Number of preferred shares redeemed | 1,473,000 | ||||||
Preferred stock annual dividend rate (in percentage) | 8.60% | ||||||
Redeemable preferred shares acquired (in shares) | 1,473,000 | ||||||
Payments for redemption of preferred stock in cash | $ 1,473 | ||||||
9346-9963 Quebec Inc | Series N Preference Shares | |||||||
Related Parties | |||||||
Investment in an affiliated corporation | $ 2,113 | ||||||
Number of preferred shares redeemed | 2,113,000 | ||||||
Preferred stock annual dividend rate (in percentage) | 10.60% | ||||||
Redeemable preferred shares acquired (in shares) | 2,113,000 | ||||||
Payments for redemption of preferred stock in cash | $ 2,113 | ||||||
Other affiliated corporations | |||||||
Related Parties | |||||||
Investment in an affiliated corporation | $ 1,595 |
PENSION PLANS AND POSTRETIREM_3
PENSION PLANS AND POSTRETIREMENT BENEFITS - Changes in the plans benefit obligations (Details) - Present value of defined benefit - CAD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Pension defined benefit plans | ||
Disclosure of net defined benefit liability (asset) | ||
Benefit obligations at the beginning of the year | $ 454.6 | $ 659 |
Service costs | 10.2 | 22.7 |
Interest costs | 23.5 | 17.4 |
Plan participants' contributions | 5 | 4.7 |
Actuarial loss (gain) arising from: | ||
Financial assumptions | 38.4 | (215.2) |
Participant experience | 3.1 | 3.5 |
Benefits and settlements paid | (15.7) | (37.5) |
Benefit obligations at the end of the year | 519.1 | 454.6 |
Postretirement defined benefit plans | ||
Disclosure of net defined benefit liability (asset) | ||
Benefit obligations at the beginning of the year | 17 | 38.9 |
Service costs | 0.4 | 0.9 |
Interest costs | 0.9 | 1 |
Actuarial loss (gain) arising from: | ||
Financial assumptions | 1.5 | (12.6) |
Demographic assumptions | (2.4) | |
Participant experience | (6.2) | |
Benefits and settlements paid | (0.8) | (0.7) |
Plan amendments and other | (1.9) | |
Benefit obligations at the end of the year | $ 19 | $ 17 |
PENSION PLANS AND POSTRETIREM_4
PENSION PLANS AND POSTRETIREMENT BENEFITS - Changes in the fair value of plan assets (Details) - Plan assets - CAD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Disclosure of net defined benefit liability (asset) | ||
Employer contributions | $ (2.5) | |
Pension defined benefit plans | ||
Disclosure of net defined benefit liability (asset) | ||
Fair value of plan assets at the beginning of the year | 527.6 | $ 607.7 |
Actual return on plan assets | 54.1 | (69.3) |
Employer contributions | 1.7 | 22.7 |
Plan participants' contributions | 5 | 4.7 |
Benefits and settlements paid | (15.7) | (37.5) |
Administrative fees | (0.7) | (0.7) |
Fair value of plan assets at the end of the year | 572 | 527.6 |
Postretirement defined benefit plans | ||
Disclosure of net defined benefit liability (asset) | ||
Employer contributions | 0.8 | 0.7 |
Benefits and settlements paid | $ (0.8) | $ (0.7) |
PENSION PLANS AND POSTRETIREM_5
PENSION PLANS AND POSTRETIREMENT BENEFITS - Components of plan assets and reconciliation of funded status (Details) - CAD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Disclosure of net defined benefit liability (asset) | ||
Weighted average duration of defined benefit obligations | 16 years 1 month 6 days | 16 years |
Expected future benefit payments in 2024 | $ 24.8 | |
Reconciliation of funded status to net amount recognized | ||
Net liability recognized | 18.2 | $ 14.7 |
Net liability recognized in other liabilities | 19 | 20.6 |
Net liability recognized in other assets | 0.8 | 5.9 |
Pension defined benefit plans | ||
Reconciliation of funded status to net amount recognized | ||
Benefit obligations | (519.1) | (454.6) |
Fair value of plan assets | 572 | 527.6 |
Plan surplus (deficit) | 52.9 | 73 |
Asset limit and minimum funding adjustment | (52.1) | (70.7) |
Net amount recognized | 0.8 | 2.3 |
Postretirement defined benefit plans | ||
Reconciliation of funded status to net amount recognized | ||
Benefit obligations | (19) | (17) |
Plan surplus (deficit) | (19) | (17) |
Net amount recognized | $ (19) | $ (17) |
Plan assets | ||
Plan assets | ||
Debt securities (as a percent) | 37% | 36.40% |
Other (as a percent) | 17.10% | 19.10% |
Total plan assets (in percent) | 100% | 100% |
Plan assets | Canadian | ||
Plan assets | ||
Equity securities (as a percent) | 19.10% | 18.30% |
Plan assets | Foreign | ||
Plan assets | ||
Equity securities (as a percent) | 26.80% | 26.20% |
PENSION PLANS AND POSTRETIREM_6
PENSION PLANS AND POSTRETIREMENT BENEFITS - Components of re-measurements (Details) - CAD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Pension defined benefit plans | |||
Disclosure of net defined benefit liability (asset) | |||
Actuarial (loss) gain on benefit obligations | $ (41.5) | $ 211.7 | $ 60 |
Actual return on plan assets, less interest income anticipated in the interest on the net defined benefit liability calculation | 27.1 | (84.9) | 42.4 |
Asset limit and minimum funding adjustment | 22.3 | (70.7) | |
Re-measurement gain (loss) recorded in other comprehensive income | 7.9 | 56.1 | 102.4 |
Postretirement defined benefit plans | |||
Disclosure of net defined benefit liability (asset) | |||
Actuarial (loss) gain on benefit obligations | (1.5) | 21.2 | 5.5 |
Re-measurement gain (loss) recorded in other comprehensive income | $ (1.5) | $ 21.2 | $ 5.5 |
PENSION PLANS AND POSTRETIREM_7
PENSION PLANS AND POSTRETIREMENT BENEFITS - Components of the net benefit costs (Details) - CAD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Pension defined benefit plans | |||
Employee costs: | |||
Service costs | $ 10.2 | $ 22.7 | $ 27 |
Plan amendments, administrative fees and other | 0.7 | 0.6 | 0.5 |
Interest on net defined benefit liability | 0.1 | 2 | 4.2 |
Net benefit costs (gain) | 11 | 25.3 | 31.7 |
Postretirement defined benefit plans | |||
Employee costs: | |||
Service costs | 0.4 | 0.9 | 1.7 |
Plan amendments, administrative fees and other | (2) | (3.8) | |
Interest on net defined benefit liability | 0.9 | $ 1.1 | 1.2 |
Net benefit costs (gain) | $ 1.3 | $ (0.9) |
PENSION PLANS AND POSTRETIREM_8
PENSION PLANS AND POSTRETIREMENT BENEFITS - Assumptions and sensitivity analysis (Details) - CAD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Pension and postretirement benefits | |||
Defined contribution expense | $ 16.3 | $ 16.3 | $ 17.6 |
Expected employer contributions in the next fiscal year | $ 0.5 | ||
Benefit obligations | |||
Percentage increase of discount rate (as a percent) | 0.10% | ||
Pension defined benefit plans | |||
Benefit obligations | |||
Decrease of retirement benefit obligation due to increase of actuarial assumption | $ 7.6 | ||
Postretirement defined benefit plans | |||
Benefit obligations | |||
Decrease of retirement benefit obligation due to increase of actuarial assumption | $ 0.3 | ||
Actuarial assumption discount rate | |||
Benefit obligations | |||
Discount rate, current year (as a percent) | 4.60% | 5.10% | 3% |
Rate of compensation increase, current year (as a percent) | 3% | 3% | 3% |
Current periodic costs | |||
Discount rate, preceding year (as a percent) | 5.10% | 3% | 2.50% |
Rate of compensation increase, preceding year (as a percent) | 3% | 3% | 3% |
Assumed average retirement age | 62 years | 62 years | 62 years |
Assumed health care cost trend rate (as a percent) | 5.90% | ||
Assumed health care cost trend rate (as a percent) | 4.20% | ||
Plan assets | |||
Pension and postretirement benefits | |||
Employer contributions | $ 2.5 | ||
Plan assets | Pension defined benefit plans | |||
Pension and postretirement benefits | |||
Employer contributions | (1.7) | $ (22.7) | |
Plan assets | Postretirement defined benefit plans | |||
Pension and postretirement benefits | |||
Employer contributions | $ (0.8) | $ (0.7) |
SUBSEQUENT EVENT (Details)
SUBSEQUENT EVENT (Details) $ in Millions | 12 Months Ended | |||||
Jan. 17, 2024 CAD ($) | Nov. 30, 2023 CAD ($) item | Dec. 31, 2023 CAD ($) | Dec. 31, 2022 CAD ($) | Dec. 31, 2021 CAD ($) | May 31, 2024 CAD ($) | |
SUBSEQUENT EVENT | ||||||
Amount of initial deposit | $ 156.6 | $ 75.1 | $ 986.1 | |||
Spectrum licences | ||||||
SUBSEQUENT EVENT | ||||||
Amount of investment | $ 298.9 | |||||
Number of blocks acquired | item | 305 | |||||
Spectrum licences | Ontario, Alberta and British Columbia | ||||||
SUBSEQUENT EVENT | ||||||
Percentage of blocks located | 61% | |||||
Investment in 3800 MHz band | Spectrum licences | ||||||
SUBSEQUENT EVENT | ||||||
Amount of initial deposit | $ 59.8 | |||||
Amount agreed to be paid | $ 239.1 |