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Stock-Based Compensation (Tables)
 12 Months Ended
Dec. 31, 2018
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]  
Stock Option Plan The following table summarizes the Company’s stock option plan as at December 31, 2018:
 
Options outstanding
Non-vested options
 
Number of
options

Weighted
average
exercise price

Number of
options

Weighted
average
grant date
fair value

Outstanding, January 1, 2018
1,479,275

$
150.64

682,927

$
45.46

Granted
282,125

$
248.54

282,125

$
55.63

Exercised
(200,552
)
$
118.86

N/A

N/A

Vested
N/A

N/A

(226,623
)
$
46.94

Forfeited
(26,650
)
$
211.80

(24,327
)
$
47.65

Expired
(600
)
$
71.69

N/A

N/A

Outstanding, December 31, 2018
1,533,598

$
176.02

714,102

$
48.94

Vested or expected to vest at December 31, 2018(1)
1,500,135

$
174.77

N/A

N/A

Exercisable, December 31, 2018
819,496

$
140.54

N/A

N/A

(1) As at December 31, 2018, the weighted average remaining term of vested or expected to vest options was 7.0 years with an aggregate intrinsic value of $104 million.
Stock Options Outstanding and Exercisable The following table provides the number of stock options outstanding and exercisable as at December 31, 2018 by range of exercise price and their related intrinsic aggregate value, and for options outstanding, the weighted-average years to expiration. The table also provides the aggregate intrinsic value for in-the-money stock options, which represents the amount that would have been received by option holders had they exercised their options on December 31, 2018 at the Company’s closing stock price of $242.24.
 
Options outstanding
Options exercisable
Range of exercise prices
Number of
options

Weighted
average
years to
expiration
Weighted
average
exercise
price

Aggregate
intrinsic
value
(millions)

Number of
options

Weighted
average
exercise
price

Aggregate
intrinsic
value
(millions)

$36.29 – $122.76
410,049

3.3
$
93.51

$
61

410,049

$
93.51

$
61

$122.77 – $200.75
339,686

6.1
$
164.47

$
26

232,206

$
164.49

$
18

$200.76 – $217.68
388,527

5.1
$
205.80

$
14

88,013

$
207.63

$
3

$217.69 – $272.92
395,336

6.2
$
242.25

$
3

89,228

$
228.12

$
1

Total(1)
1,533,598

5.2
$
176.02

$
104

819,496

$
140.54

$
83

(1) As at December 31, 2018, the total number of in-the-money stock options outstanding was 1,342,215 with a weighted-average exercise price of $164.62. The weighted-average years to expiration of exercisable stock options is 4.5 years.
Weighted-Average Fair Value Assumptions The weighted average fair value assumptions were approximately:
 
2018

2017

2016

Expected option life (years)(1)
5.00

5.48

5.25

Risk-free interest rate(2)
2.22
%
1.85
%
1.21
%
Expected stock price volatility(3)
25
%
27
%
27
%
Expected annual dividends per share(4) 
$
2.3854

$
2.0010

$
1.4000

Estimated forfeiture rate(5)
4.7
%
2.8
%
2.0
%
Weighted average grant date fair value of options granted during the year
$
55.63

$
45.78

$
39.01

(1) Represents the period of time that awards are expected to be outstanding. Historical data on exercise behaviour or, when available, specific expectations regarding future exercise behaviour were used to estimate the expected life of the option.
(2) Based on the implied yield available on zero-coupon government issues with an equivalent remaining term at the time of the grant.
(3) Based on the historical stock price volatility of the Company’s stock over a period commensurate with the expected term of the option.
(4) Determined by the current annual dividend at the time of grant. The Company does not employ different dividend yields throughout the contractual term of the option. On May 10, 2018, the Company announced an increase in its quarterly dividend to $0.6500 per share, representing $2.6000 on an annual basis.
(5) The Company estimates forfeitures based on past experience. The rate is monitored on a periodic basis.
Schedule of Options Exercised The following table provides information related to all options exercised in the stock option plan during the years ended December 31:
(in millions of Canadian dollars)
2018

2017

2016

Total intrinsic value
$
17

$
36

$
30

Cash received by the Company upon exercise of options
$
24

$
45

$
21
Summary of Performance Share Units Plan The following table summarizes information related to the Company’s PSUs as at December 31:
 
2018

2017

Outstanding, January 1
334,028

373,593

Granted
162,255

134,991

Units, in lieu of dividends
3,643

3,571

Settled
(66,243
)
(133,728
)
Forfeited
(38,635
)
(44,399
)
Outstanding, December 31
395,048

334,028
Summary of Deferred Share Units Plan The following table summarizes information related to the DSUs as at December 31:
 
2018

2017

Outstanding, January 1
156,547

234,036

Granted
16,481

23,932

Units, in lieu of dividends
1,551

1,969

Settled
(20,072
)
(33,682
)
Forfeited
(1,747
)
(69,708
)
Outstanding, December 31
152,760

156,547
Summary of Total Share Based Liabilities Paid The following table summarizes the total share-based liabilities paid for each of the years ended December 31:
(in millions of Canadian dollars)
2018

2017

2016

Plan
 
 
 
PSUs
$
30

$
31

$
31

DSUs
6

6

17

Other
1

2

—

Total
$
37

$
39

$
48