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STOCK OPTION AND STOCK UNIT PLANS (Tables)

12 Months Ended

Dec. 31, 2023

Share-Based Payment Arrangement [Abstract]

Schedule of Outstanding Stock Options

December 31, 2023			Number			Weighted Average Exercise Price			Weighted Average Remaining Contractual Life (years)			Aggregate Intrinsic Value
(number of options in thousands; weighted average exercise price in Canadian dollars; intrinsic value in millions of Canadian dollars)
Options outstanding at beginning of year			27,624			48.46
Options granted			3,053			53.11
Options exercised1			(648)			45.70
Options cancelled or expired			(1,300)			53.84
Options outstanding at end of year			28,729			50.79			5.3			45
Options vested at end of year2			20,235			50.64			4.1			36

1The total intrinsic value of ISOs exercised during the years ended December 31, 2023, 2022 and 2021 was $2 million, $66 million and $24 million, respectively, and cash received on exercise was nil, $3 million and $2 million, respectively.

2The total fair value of ISOs vested during the years ended December 31, 2023, 2022 and 2021 was $20 million, $21 million and $25 million, respectively.

Schedule of Weighted Average Assumptions Used to Determine the Fair Value of Stock Options Granted

Weighted average assumptions used to determine the fair value of ISOs granted using the Black-Scholes-Merton model are as follows:

Year ended December 31,			2023			2022			2021
Fair value per option (Canadian dollars)1			6.05			5.07			4.10
Valuation assumptions
Expected option term (years)2			6			6			6
Expected volatility3			22.2		%	21.9		%	25.5		%
Expected dividend yield4			6.7		%	6.5		%	7.6		%
Risk-free interest rate5			3.5		%	1.8		%	0.7		%

1Options granted to US employees are based on the New York Stock Exchange prices. The option value and assumptions shown are based on a weighted average of the US and the Canadian options. The fair value per option for the years ended December 31, 2023, 2022 and 2021 were $5.38, $4.78 and $3.91, respectively, for Canadian employees and US$5.23, US$4.62 and US$3.65, respectively, for US employees.

2The expected option term is six years based on historical exercise practice and five years for retirement eligible employees.

3Expected volatility is determined with reference to historic daily share price volatility and consideration of the implied volatility observable in call option values near the grant date.

4The expected dividend yield is the current annual dividend at the grant date divided by the current stock price.

5The risk-free interest rate is based on the Government of Canada's Canadian bond yields and the US Treasury bond yields.

Share-Based Payment Arrangement, Performance Shares, Activity

December 31, 2023			Number			Weighted Average Remaining Contractual Life (years)			Aggregate Intrinsic Value
(number of units in thousands; intrinsic value in millions of Canadian dollars)
Units outstanding at beginning of year			3,249
Units granted			2,128
Units cancelled			(214)
Units matured1			(2,218)
Dividend reinvestment			235
Units outstanding at end of year			3,180			1.1			175

1The total amount paid during the years ended December 31, 2023, 2022 and 2021 for PSUs was $123 million, $90 million and $70 million, respectively.

Schedule of Outstanding Stock Units

December 31, 2023			Number			Weighted Average Grant Date Fair Value2			Weighted Average Remaining Contractual Life (years)			Aggregate Intrinsic Value
(number of units in thousands; intrinsic value in millions of Canadian dollars)
Units outstanding at beginning of year			3,565			49.64
Units granted			1,373			52.05
Units cancelled			(246)			52.06
Units matured1			(1,401)			51.05
Dividend reinvestment			280			50.88
Units outstanding at end of year			3,571			50.69			0.9			177

1The total amount paid during the years ended December 31, 2023, 2022 and 2021 for RSUs was $56 million, $32 million and $72 million, respectively.

2Weighted average grant date fair value excludes cash-settled units.

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Tabular disclosure of the number and weighted-average grant date fair value for restricted stock units that were outstanding at the beginning and end of the year, and the number of restricted stock units that were granted, vested, or forfeited during the year.

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Tabular disclosure of the significant assumptions used during the year to estimate the fair value of stock options, including, but not limited to: (a) expected term of share options and similar instruments, (b) expected volatility of the entity's shares, (c) expected dividends, (d) risk-free rate(s), and (e) discount for post-vesting restrictions.

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