SHARE CAPITAL

12 Months Ended

Dec. 31, 2023

Equity [Abstract]

SHARE CAPITAL

SHARE CAPITAL

Our authorized share capital consists of an unlimited number of common shares with no par value and an unlimited number of preference shares.

COMMON SHARES

	2023		2022		2021
December 31,	Number of Shares	Amount	Number of Shares	Amount	Number of Shares	Amount
(millions of Canadian dollars; number of shares in millions)
Balance at beginning of year	2,025	64,760	2,026	64,799	2,026	64,768
Shares issued, net of issue costs	103	4,485	—	—	—	—
Shares issued on exercise of stock options	—	3	2	53	—	31
Shares issued on vesting of RSUs, net of tax	—	12	—	—	—	—
Share purchases at stated value1	(3)	(80)	(3)	(88)	—	—
Other	—	—	—	(4)	—	—
Balance at end of year	2,125	69,180	2,025	64,760	2,026	64,799

1 Reflects the repurchase and cancellation of common shares under our normal course issuer bid.

PREFERENCE SHARES

	2023		2022		2021
December 31,	Number of Shares	Amount	Number of Shares	Amount	Number of Shares	Amount
(millions of Canadian dollars; number of shares in millions)
Preference Shares, Series A	5	125	5	125	5	125
Preference Shares, Series B	20	500	20	500	18	457
Preference Shares, Series C1	—	—	—	—	2	43
Preference Shares, Series D	18	450	18	450	18	450
Preference Shares, Series F	18	454	20	500	20	500
Preference Shares, Series G2	2	46	—	—	—	—
Preference Shares, Series H	12	291	14	350	14	350
Preference Shares, Series I3	2	59	—	—	—	—
Preference Shares, Series J4	—	—	—	—	8	199
Preference Shares, Series L	16	411	16	411	16	411
Preference Shares, Series N	18	450	18	450	18	450
Preference Shares, Series P	16	400	16	400	16	400
Preference Shares, Series R	16	400	16	400	16	400
Preference Shares, Series 1	16	411	16	411	16	411
Preference Shares, Series 3	24	600	24	600	24	600
Preference Shares, Series 5	8	206	8	206	8	206
Preference Shares, Series 7	10	250	10	250	10	250
Preference Shares, Series 9	11	275	11	275	11	275
Preference Shares, Series 11	20	500	20	500	20	500
Preference Shares, Series 13	14	350	14	350	14	350
Preference Shares, Series 15	11	275	11	275	11	275
Preference Shares, Series 175	—	—	—	—	30	750
Preference Shares, Series 19	20	500	20	500	20	500
Issuance costs		(135)		(135)		(155)
Balance at end of year		6,818		6,818		7,747

1On June 1, 2022, all outstanding Preference Shares, Series C were converted to Preference Shares, Series B.

2On June 1, 2023, 1,827,695 of the outstanding Preference Shares, Series F were converted into Preference Shares, Series G.

3On September 1, 2023, 2,350,602 of the outstanding Preference Shares, Series H were converted into Preference Shares, Series I.

4On June 1, 2022, we redeemed our US$200 million outstanding Cumulative Redeemable Preference Shares, Series J.

5On March 1, 2022, we redeemed our $750 million outstanding Cumulative Redeemable Minimum Rate Reset Preference Shares, Series 17.

Characteristics of our outstanding preference shares are as follows:

	Dividend Rate		Dividend1	Per Share Base Redemption Value2	Redemption and Conversion Option Date2,3	Right to Convert Into3,4
(Canadian dollars unless otherwise stated)
Preference Shares, Series A	5.50	%	$1.37500	$25	—	—
Preference Shares, Series B	5.20	%	$1.30052	$25	June 1, 2027	Series C
Preference Shares, Series D5	5.41	%	$1.35300	$25	March 1, 2028	Series E
Preference Shares, Series F6	5.54	%	$1.38452	$25	June 1, 2028	Series G
Preference Shares, Series G7	6.96	%	$1.90704	$25	June 1, 2028	Series F
Preference Shares, Series H8	6.11	%	$1.52800	$25	September 1, 2028	Series I
Preference Shares, Series I9	7.19	%	$1.81004	$25	September 1, 2028	Series H
Preference Shares, Series L	5.86	%	US$1.46448	US$25	September 1, 2027	Series M
Preference Shares, Series N10	6.70	%	$1.67400	$25	December 1, 2028	Series O
Preference Shares, Series P	4.38	%	$1.09476	$25	March 1, 2024	Series Q
Preference Shares, Series R	4.07	%	$1.01825	$25	June 1, 2024	Series S
Preference Shares, Series 111	6.70	%	US$1.67592	US$25	June 1, 2028	Series 2
Preference Shares, Series 3	3.74	%	$0.93425	$25	September 1, 2024	Series 4
Preference Shares, Series 5	5.38	%	US$1.34383	US$25	March 1, 2024	Series 6
Preference Shares, Series 7	4.45	%	$1.11224	$25	March 1, 2024	Series 8
Preference Shares, Series 9	4.10	%	$1.02424	$25	December 1, 2024	Series 10
Preference Shares, Series 11	3.94	%	$0.98452	$25	March 1, 2025	Series 12
Preference Shares, Series 13	3.04	%	$0.76076	$25	June 1, 2025	Series 14
Preference Shares, Series 15	2.98	%	$0.74576	$25	September 1, 2025	Series 16
Preference Shares, Series 1912	6.21	%	$1.55300	$25	March 1, 2028	Series 20

1The holder is entitled to receive a fixed cumulative quarterly preferential dividend, as declared by the Board of Directors. With the exception of Preference Shares, Series A, such fixed dividend rate resets every five years beginning on the initial Redemption and Conversion Option Date. Preference Shares, Series G and I contain a feature where the dividend rate resets on a quarterly basis. The Preference Shares, Series 19 contain a feature where the fixed dividend rate, when reset every five years, will not be less than 4.90%. No other series of preference shares has this feature.

2Preference Shares, Series A may be redeemed any time at our option. For all other series of preference shares, we may at our option, redeem all or a portion of the outstanding preference shares for the Per Share Base Redemption Value plus all accrued and unpaid dividends on the Redemption Option Date and on every fifth anniversary thereafter.

3The holder will have the right, subject to certain conditions, to convert their shares into Cumulative Redeemable Preference Shares of a specified series on a one-for-one basis on the Conversion Option Date and every fifth anniversary thereafter at an ascribed issue price equal to the Per Share Base Redemption Value.

4With the exception of Preference Shares, Series A, after the Redemption and Conversion Option Date, holders may elect to receive quarterly floating rate cumulative dividends per share at a rate equal to: $25 x (number of days in quarter/number of days in year) x three month Government of Canada treasury bill rate + 2.4% (Series C), 2.4% (Series E), 2.5% (Series G), 2.1% (Series I), 2.7% (Series O), 2.5% (Series Q), 2.5% (Series S), 2.4% (Series 4), 2.6% (Series 8), 2.7% (Series 10), 2.6% (Series 12), 2.7% (Series 14), 2.7% (Series 16), or 3.2% (Series 20); or US$25 x (number of days in quarter/number of days in year) x three month US Government treasury bill rate + 3.2% (Series M), 3.1% (Series 2), or 2.8% (Series 6).

5The quarterly dividend per share paid on Preference Shares, Series D was increased to $0.33825 from $0.27875 on March 1, 2023 due to reset of the annual dividend on March 1, 2023.

6The quarterly dividend per share paid on Preference Shares, Series F was increased to $0.34613 from $0.29306 on June 1, 2023 due to reset of the annual dividend on June 1, 2023.

7On June 1, 2023, 1,827,695 of the outstanding Preference Shares, Series F were converted into Preference Shares, Series G. The quarterly dividend per share paid on Preference Shares, Series G was increased to $0.47676 from $0.47245 on December 1, 2023 due to reset on a quarterly basis.

8The quarterly dividend per share paid on Preference Shares, Series H was increased to $0.38200 from $0.27350 on September 1, 2023 due to reset of the annual dividend on September 1, 2023.

9On September 1, 2023, 2,350,602 of the outstanding Preference Shares, Series H were converted into Preference Shares, Series I. The quarterly dividend per share paid on Preference Shares, Series I was increased to $0.45251 from $0.44814 on December 1, 2023 due to reset on a quarterly basis following the date of issuance.

10 The quarterly dividend per share paid on Preference Shares, Series N was increased to $0.41850 from $0.31788 on December 1, 2023 due to reset of the annual dividend on December 1, 2023.

11 The quarterly dividend per share paid on Preference Shares, Series 1 was increased to US$0.41898 from US$0.37182 on June 1, 2023 due to reset of the annual dividend on June 1, 2023.

12 The quarterly dividend per share paid on Preference Shares, Series 19 was increased to $0.38825 from $0.30625 on March 1, 2023 due to reset of the annual dividend on March 1, 2023.

SHAREHOLDER RIGHTS PLAN

The Shareholder Rights Plan is designed to encourage the fair treatment of our shareholders in connection with any takeover offer. Rights issued under the plan become exercisable when a person and any related parties acquires or announces its intention to acquire 20% or more of our outstanding common shares without complying with certain provisions set out in the plan or without approval of our Board of Directors. Should such an acquisition occur, each rights holder, other than the acquiring person and related parties, will have the right to purchase our common shares at a 50% discount to the market price at that time.