financial instruments (Tables)

12 Months Ended

Dec. 31, 2021

financial instruments

Schedule of financial instruments, accounting classification and the nature of certain risks to which they may be subject

		Risks
	Accounting			Market risks
Financial instrument	classification	Credit	Liquidity	Currency	Interest rate	Other price
Measured at amortized cost
Accounts receivable	AC 1	X		X
Contract assets	AC 1	X
Construction credit facilities advances to real estate joint venture	AC 1				X
Short-term borrowings	AC 1		X	X	X
Accounts payable	AC 1		X	X
Provisions (including restructuring accounts payable)	AC 1		X	X		X
Long-term debt	AC 1		X	X	X
Measured at fair value
Cash and temporary investments	FVTPL 2	X		X	X
Long-term investments (not subject to significant influence) 3	FVTPL/FVOCI 3			X		X
Foreign exchange derivatives 4	FVTPL 2	X	X	X

1 For accounting recognition and measurement purposes, classified as amortized cost (AC).

2 For accounting recognition and measurement purposes, classified as fair value through net income (FVTPL). Unrealized changes in the fair values of financial instruments are included in net income unless the instrument is part of a cash flow hedging relationship. The effective portions of unrealized changes in the fair values of financial instruments held for hedging are included in other comprehensive income.

3 Long-term investments over which we do not have significant influence are measured at fair value if those fair values can be reliably measured. For accounting recognition and measurement purposes, on an investment-by-investment basis, long-term investments are classified as either fair value through net income or fair value through other comprehensive income (FVOCI).

4 Use of derivative financial instruments is subject to a policy which requires that no derivative transaction is to be entered into for the purpose of establishing a speculative or leveraged position (the corollary being that all derivative transactions are to be entered into for risk management purposes only) and sets criteria for the creditworthiness of the transaction counterparties.

Schedule of maximum exposure (excluding income tax effects) to credit risk

As at December 31 (millions)	2021		2020
Cash and temporary investments, net	$	723	$	848
Accounts receivable		3,216		2,716
Contract assets		709		707
Derivative assets		89		42
	$	4,737	$	4,313

Analysis of the age of customer accounts receivable

As at December 31 (millions)		2021						2020
	Note	Gross		Allowance		Net 1		Gross		Allowance		Net 1
Customer accounts receivable, net of allowance for doubtful accounts
Less than 30 days past billing date		$	883	$	(8)	$	875	$	815	$	(19)	$	796
30-60 days past billing date			330		(7)		323		339		(17)		322
61-90 days past billing date			92		(9)		83		90		(19)		71
More than 90 days past billing date			140		(21)		119		98		(43)		55
Unbilled customer finance receivables			1,323		(65)		1,258		1,026		(42)		984
		$	2,768	$	(110)	$	2,658	$	2,368	$	(140)	$	2,228
Current		$	2,194	$	(81)	$	2,113	$	1,986	$	(119)	$	1,867
Non-current	20		574		(29)		545		382		(21)		361
		$	2,768	$	(110)	$	2,658	$	2,368	$	(140)	$	2,228

1 Net amounts represent customer accounts receivable for which an allowance had not been made as at the dates of the Consolidated statements of financial position (see Note 6(b)).

Summary of activity related to the allowance for doubtful accounts

Years ended December 31 (millions)	2021		2020
Balance, beginning of period	$	140	$	55
Additions (doubtful accounts expense)		42		91
Accounts written off 1 less than recoveries		(77)		(22)
Other		5		16
Balance, end of period	$	110	$	140

1 For the year ended December 31, 2021, accounts written off, but that were still subject to enforcement activity, totalled $110 (2020 – $92).

Summary of contract assets and related impairment allowance activity

As at December 31 (millions)	2021						2020
	Gross		Allowance		Net (Note 6(c))		Gross		Allowance		Net (Note 6(c))
Contract assets, net of impairment allowance
To be billed and thus reclassified to accounts receivable during:
The 12-month period ending one year hence	$	595	$	(24)	$	571	$	611	$	(29)	$	582
The 12-month period ending two years hence		259		(11)		248		265		(12)		253
Thereafter		19		(1)		18		16		(1)		15
	$	873	$	(36)	$	837	$	892	$	(42)	$	850

Schedule of contractual maturities of undiscounted financial liabilities, Non-derivative

	Non-derivative								Derivative
					Composite long-term debt
					Long-term
	Non-interest				debt,
	bearing				excluding				Currency swap agreement						Currency swap agreement
	financial		Short-term		leases 1		Leases		amounts to be exchanged 2						amounts to be exchanged
As at December 31, 2021 (millions)	liabilities		borrowings 1		(Note 26)		(Note 26)		(Receive)		Pay		Other		(Receive)		Pay		Total
2022	$	3,395	$	15	$	3,130	$	504	$	(2,050)	$	2,059	$	8	$	(544)	$	540	$	7,057
2023		62		1		1,167		364		(149)		148		—		—		—		1,593
2024		13		101		1,724		305		(149)		148		—		—		—		2,142
2025		14		—		2,217		176		(522)		540		—		—		—		2,425
2026		2		—		1,901		144		(116)		118		—		—		—		2,049
2027-2031		7		—		7,351		398		(1,784)		1,852		—		—		—		7,824
Thereafter		—		—		10,499		344		(2,805)		2,877		—		—		—		10,915
Total	$	3,493	$	117	$	27,989	$	2,235	$	(7,575)	$	7,742	$	8	$	(544)	$	540	$	34,005
						Total (Note 26(i))					$	30,391

1 Cash outflows in respect of interest payments on our short-term borrowings, commercial paper and amounts drawn under our credit facilities (if any) have been calculated based upon the interest rates in effect as at December 31, 2021.

2 The amounts included in undiscounted non-derivative long-term debt in respect of U.S. dollar-denominated long-term debt, and the corresponding amounts in the long-term debt currency swap receive column, have been determined based upon the currency exchange rates in effect as at December 31, 2021. The hedged U.S. dollar-denominated long-term debt contractual amounts at maturity, in effect, are reflected in the long-term debt currency swap pay column as gross cash flows are exchanged pursuant to the currency swap agreements.

	Non-derivative								Derivative
					Composite long-term debt
					Long-term
	Non-interest				debt,
	bearing				excluding				Currency swap agreement						Currency swap agreement
	financial		Short-term		leases 1		Leases		amounts to be exchanged 2						amounts to be exchanged
As at December 31, 2020 (millions)	liabilities		borrowings 1		(Note 26)		(Note 26)		(Receive)		Pay		Other		(Receive)		Pay		Total
2021	$	2,669	$	101	$	1,658	$	538	$	(882)	$	892	$	—	$	(454)	$	475	$	4,997
2022		74		—		2,204		371		(149)		151		—		—		—		2,651
2023		8		—		1,149		230		(149)		151		6		—		—		1,395
2024		8		—		1,706		191		(150)		151		—		—		—		1,906
2025		9		—		2,868		145		(525)		575		—		—		—		3,072
2026-2030		12		—		7,953		417		(1,836)		1,898		—		—		—		8,444
Thereafter		—		—		9,877		379		(2,889)		2,949		—		—		—		10,316
Total	$	2,780	$	101	$	27,415	$	2,271	$	(6,580)	$	6,767	$	6	$	(454)	$	475	$	32,781
						Total					$	29,873

1 Cash outflows in respect of interest payments on our short-term borrowings, commercial paper and amounts drawn under our credit facilities (if any) have been calculated based upon the interest rates in effect as at December 31, 2020.

2 The amounts included in undiscounted non-derivative long-term debt in respect of U.S. dollar-denominated long-term debt, and the corresponding amounts in the long-term debt currency swap receive column, have been determined based upon the currency exchange rates in effect as at December 31, 2020. The hedged U.S. dollar-denominated long-term debt contractual amounts at maturity, in effect, are reflected in the long-term debt currency swap pay column as gross cash flows are exchanged pursuant to the currency swap agreements.

Schedule of contractual maturities of undiscounted financial liabilities, Derivative

	Non-derivative								Derivative
					Composite long-term debt
					Long-term
	Non-interest				debt,
	bearing				excluding				Currency swap agreement						Currency swap agreement
	financial		Short-term		leases 1		Leases		amounts to be exchanged 2						amounts to be exchanged
As at December 31, 2021 (millions)	liabilities		borrowings 1		(Note 26)		(Note 26)		(Receive)		Pay		Other		(Receive)		Pay		Total
2022	$	3,395	$	15	$	3,130	$	504	$	(2,050)	$	2,059	$	8	$	(544)	$	540	$	7,057
2023		62		1		1,167		364		(149)		148		—		—		—		1,593
2024		13		101		1,724		305		(149)		148		—		—		—		2,142
2025		14		—		2,217		176		(522)		540		—		—		—		2,425
2026		2		—		1,901		144		(116)		118		—		—		—		2,049
2027-2031		7		—		7,351		398		(1,784)		1,852		—		—		—		7,824
Thereafter		—		—		10,499		344		(2,805)		2,877		—		—		—		10,915
Total	$	3,493	$	117	$	27,989	$	2,235	$	(7,575)	$	7,742	$	8	$	(544)	$	540	$	34,005
						Total (Note 26(i))					$	30,391

1 Cash outflows in respect of interest payments on our short-term borrowings, commercial paper and amounts drawn under our credit facilities (if any) have been calculated based upon the interest rates in effect as at December 31, 2021.

2 The amounts included in undiscounted non-derivative long-term debt in respect of U.S. dollar-denominated long-term debt, and the corresponding amounts in the long-term debt currency swap receive column, have been determined based upon the currency exchange rates in effect as at December 31, 2021. The hedged U.S. dollar-denominated long-term debt contractual amounts at maturity, in effect, are reflected in the long-term debt currency swap pay column as gross cash flows are exchanged pursuant to the currency swap agreements.

	Non-derivative								Derivative
					Composite long-term debt
					Long-term
	Non-interest				debt,
	bearing				excluding				Currency swap agreement						Currency swap agreement
	financial		Short-term		leases 1		Leases		amounts to be exchanged 2						amounts to be exchanged
As at December 31, 2020 (millions)	liabilities		borrowings 1		(Note 26)		(Note 26)		(Receive)		Pay		Other		(Receive)		Pay		Total
2021	$	2,669	$	101	$	1,658	$	538	$	(882)	$	892	$	—	$	(454)	$	475	$	4,997
2022		74		—		2,204		371		(149)		151		—		—		—		2,651
2023		8		—		1,149		230		(149)		151		6		—		—		1,395
2024		8		—		1,706		191		(150)		151		—		—		—		1,906
2025		9		—		2,868		145		(525)		575		—		—		—		3,072
2026-2030		12		—		7,953		417		(1,836)		1,898		—		—		—		8,444
Thereafter		—		—		9,877		379		(2,889)		2,949		—		—		—		10,316
Total	$	2,780	$	101	$	27,415	$	2,271	$	(6,580)	$	6,767	$	6	$	(454)	$	475	$	32,781
						Total					$	29,873

1 Cash outflows in respect of interest payments on our short-term borrowings, commercial paper and amounts drawn under our credit facilities (if any) have been calculated based upon the interest rates in effect as at December 31, 2020.

2 The amounts included in undiscounted non-derivative long-term debt in respect of U.S. dollar-denominated long-term debt, and the corresponding amounts in the long-term debt currency swap receive column, have been determined based upon the currency exchange rates in effect as at December 31, 2020. The hedged U.S. dollar-denominated long-term debt contractual amounts at maturity, in effect, are reflected in the long-term debt currency swap pay column as gross cash flows are exchanged pursuant to the currency swap agreements.

Sensitivity analysis of exposure to market risks

Years ended December 31	Net income				Other comprehensive income				Comprehensive income
(increase (decrease) in millions)	2021		2020		2021		2020		2021		2020
Reasonably possible changes in market risks 1
10% change in C$: US$ exchange rate
Canadian dollar appreciates	$	1	$	—	$	(33)	$	14	$	(32)	$	14
Canadian dollar depreciates	$	(1)	$	—	$	33	$	(14)	$	32	$	(14)
10% change in US$: € exchange rate
U.S. dollar appreciates	$	—	$	—	$	(56)	$	(54)	$	(56)	$	(54)
U.S. dollar depreciates	$	—	$	—	$	56	$	54	$	56	$	54
25 basis point change in interest rates
Interest rates increase
Canadian interest rate	$	(4)	$	(1)	$	90	$	107	$	86	$	106
U.S. interest rate	$	—	$	—	$	(93)	$	(107)	$	(93)	$	(107)
Combined	$	(4)	$	(1)	$	(3)	$	—	$	(7)	$	(1)
Interest rates decrease
Canadian interest rate	$	4	$	1	$	(94)	$	(112)	$	(90)	$	(111)
U.S. interest rate	$	—	$	—	$	98	$	113	$	98	$	113
Combined	$	4	$	1	$	4	$	1	$	8	$	2

1 These sensitivities are hypothetical and should be used with caution. Changes in net income and/or other comprehensive income generally cannot be extrapolated because the relationship of the change in assumption to the change in net income and/or other comprehensive income may not be linear. In this table, the effect of a variation in a particular assumption on the amount of net income and/or other comprehensive income is calculated without changing any other factors; in reality, changes in one factor may result in changes in another, which might magnify or counteract the sensitivities.

Schedule of derivative financial instruments measured at fair value on a recurring basis

As at December 31 (millions)		2021								2020
		Maximum	Notional		Fair value 1 and		Price or			Maximum	Notional		Fair value 1 and		Price or
	Designation	maturity date	amount		carrying value		rate			maturity date	amount		carrying value		rate
Current Assets 2
Derivatives used to manage
Currency risk arising from U.S. dollar revenues	HFT 4	—	$	—	$	—		—		2021	$	87	$	2	US$1.00: C$	1.27
Currency risk arising from U.S. dollar-denominated purchases	HFH 3	2022	$	301		6	US$1.00: C$	1.25		—	$	—		—		—
Currency risk arising from Indian rupee-denominated purchases	HFT 4	2022	$	12		—	US$1.00: ₹	76		—	$	—		—		—
Currency risk arising from U.S. dollar-denominated long-term debt (Note 26(b)-(c))	HFH 3	2022	$	664		2	US$1.00: C$	1.26		2021	$	95		—	US$1.00: C$	1.27
Currency risk arising from European euro functional currency operations purchased with U.S. dollar-denominated long-term debt 7 (Note 26(f))	HFH 5	2025	$	31		3	€1.00: US$	1.09		2025	$	34		—	€1.00: US$	1.09
Interest rate risk associated with refinancing of debt maturing	HFH 3	2022	$	250		2		1.35	%	—	$	—		—		—
					$	13							$	2
Other Long-Term Assets 2
Derivatives used to manage
Currency risk arising from U.S. dollar-denominated long-term debt 6 (Note 26(b)-(c))	HFH 3	2048	$	2,133	$	76	US$1.00: C$	1.27		2048	$	2,176	$	40	US$1.00: C$	1.27
Current Liabilities 2
Derivatives used to manage
Currency risk arising from U.S. dollar revenues	HFT 4	2022	$	116	$	3	US$1.00: C$	1.27		—	$	—	$	—		—
Currency risk arising from U.S. dollar-denominated purchases	HFH 3	2022	$	108		1	US$1.00: C$	1.28		2021	$	388		21	US$1.00: C$	1.34
Currency risk arising from Indian rupee-denominated purchases	HFT 4	2022	$	2		—	US$1.00: ₹	75		—	$	—		—		—
Currency risk arising from U.S. dollar-denominated long-term debt (Note 26(b)-(c))	HFH 3	2022	$	1,248		12	US$1.00: C$	1.28		2021	$	647		11	US$1.00: C$	1.29
Interest rate risk associated with non-fixed rate credit facility amounts drawn (Note 26(f))	HFH 3	2022	$	120		3		2.64	%	2022	$	8		—		2.64	%
Interest rate risk associated with refinancing of debt maturing	HFH 3	2022	$	500		5		1.59	%	—	$	—		—		—
					$	24							$	32
Other Long-Term Liabilities 2
Derivatives used to manage
Currency risk arising from U.S. dollar-denominated long-term debt 6 (Note 26(b)-(c))	HFH 3	2049	$	3,185	$	52	US$1.00: C$	1.33		2049	$	3,260	$	82	US$1.00: C$	1.33
Currency risk arising from European euro functional currency operations purchased with U.S. dollar-denominated long-term debt 7 (Note 26(f))	HFH 5	2025	$	483		21	€1.00: US$	1.09		2025	$	557		67	€1.00: US$	1.09
Interest rate risk associated with non-fixed rate credit facility amounts drawn (Note 26(f))	HFH 3	—	$	—		—		—		2022	$	120		6		2.64	%
					$	73							$	155

1 Fair value measured at reporting date using significant other observable inputs (Level 2).

2 Derivative financial assets and liabilities are not set off.

3 Designated as held for hedging (HFH) upon initial recognition (cash flow hedging item); hedge accounting is applied. Unless otherwise noted, hedge ratio is 1:1 and is established by assessing the degree of matching between the notional amounts of hedging items and the notional amounts of the associated hedged items.

4 Designated as held for trading (HFT) and classified as fair value through net income upon initial recognition; hedge accounting is not applied.

5 Designated as a hedge of a net investment in a foreign operation; hedge accounting is applied. Hedge ratio is 1:1 and is established by assessing the degree of matching between the notional amounts of hedging items and the notional amounts of the associated hedged items.

6 We designate only the spot element as the hedging item. As at December 31, 2021, the foreign currency basis spread included in the fair value of the derivative instruments, which is used for purposes of assessing hedge ineffectiveness, was $53 (2020 – $101).

7 We designate only the spot element as the hedging item. As at December 31, 2021, the foreign currency basis spread included in the fair value of the derivative instruments, which is used for purposes of assessing hedge ineffectiveness, was $1 (2020 – $(1)).

Schedule of long-term debt amortized cost and fair value

As at December 31 (millions)	2021				2020
	Carrying				Carrying
	value		Fair value		value		Fair value
Long-term debt, excluding leases (Note 26)	$	18,976	$	20,383	$	18,451	$	20,313

Schedule of gains and losses, excluding income tax effects, on derivative instruments classified as cash flow hedging items

		Amount of gain (loss)
		recognized in other				Gain (loss) reclassified from other comprehensive
		comprehensive income				income to income (effective portion) (Note 11)
		(effective portion) (Note 11)					Amount
Years ended December 31 (millions)	Note	2021		2020		Location	2021		2020
Derivatives used to manage currency risk
Arising from U.S. dollar-denominated purchases		$	(1)	$	(6)	Goods and services purchased	$	(24)	$	(9)
Arising from U.S. dollar-denominated long-term debt 1	26(b)-(c)		27		(44)	Financing costs		(50)		12
Arising from net investment in a foreign operation 2			47		(67)	Financing costs		(1)		—
			73		(117)			(75)		3
Derivatives used to manage other market risks
Arising from changes in share-based compensation costs and other			—		(6)	Employee benefits expense and financing costs		(4)		1
		$	73	$	(123)		$	(79)	$	4

1 Amounts recognized in other comprehensive income are net of the change in the foreign currency basis spread (which is used for purposes of assessing hedge ineffectiveness) included in the fair value of the derivative instruments; such amounts for the year ended December 31, 2021, were $(48) (2020 – $63).

2 Amounts recognized in other comprehensive income are net of the change in the foreign currency basis spread (which is used for purposes of assessing hedge ineffectiveness) included in the fair value of the derivative instruments; such amounts for the year ended December 31, 2021, were $2 (2020 – $(1)).

Schedule of gains and losses arising from derivative instruments classified as held for trading

		Gain (loss) recognized in income on derivatives
Years ended December 31 (millions)	Location	2021		2020
Derivatives used to manage currency risk	Financing costs	$	(2)	$	11