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Other Long-Term Liabilities (Tables)
 12 Months Ended
Dec. 31, 2019
Subclassifications of assets, liabilities and equities [abstract]  
Disclosure of other long-term liabilities
 
 
2019


2018

Asset retirement obligations
 
$
5,771


$
3,886

Lease liabilities (note 8)
 
1,809

 
—

Share-based compensation
 
297

 
124

Risk management (note 19)
 
112


17

Deferred purchase consideration (1)
 
95


118

Other
 
98


80

 
 
8,182

 
4,225

Less: current portion
 
819


335

 
 
$
7,363

 
$
3,890

(1)
Relates to the acquisition of the Joslyn oil sands project in 2018, payable in annual installments of $25 million over the next four years.
Summary of asset retirement obligations
Reconciliations of the discounted asset retirement obligations were as follows:
 
 
2019

 
2018

 
2017

Balance – beginning of year
 
$
3,886


$
4,327


$
3,243

Liabilities incurred
 
15


19


12

Liabilities acquired, net
 
198


6


784

Liabilities settled
 
(296
)

(290
)

(274
)
Asset retirement obligation accretion
 
190


186


164

Revision of cost, inflation rates and timing estimates
 
412


(111
)

(40
)
Change in discount rates
 
1,412


(334
)

509

Foreign exchange adjustments
 
(46
)

83


(71
)
Balance – end of year
 
5,771

 
3,886

 
4,327

Less: current portion
 
208


186


92

 
 
$
5,563

 
$
3,700

 
$
4,235

Segmented Asset Retirement Obligations
 
 
2019


2018

Exploration and Production
 
 

 
North America
 
$
2,792


$
1,665

North Sea
 
816


707

Offshore Africa
 
161


134

Oil Sands Mining and Upgrading
 
2,000


1,379

Midstream and Refining
 
2


1

 
 
$
5,771

 
$
3,886
Summary of share-based compensation liability
The current portion of the liability represents the maximum amount of the liability payable within the next twelve month period if all vested stock options and PSUs are settled in cash.
 
 
2019

 
2018

 
2017

Balance – beginning of year
 
$
124

 
$
414

 
$
426

Share-based compensation expense (recovery)
 
223

 
(146
)
 
134

Cash payment for stock options surrendered
 
(2
)
 
(5
)
 
(6
)
Transferred to common shares
 
(53
)
 
(120
)
 
(154
)
Charged to (recovered from) Oil Sands Mining and
Upgrading, net
 
5

 
(19
)
 
14

Balance – end of year
 
297

 
124

 
414

Less: current portion
 
227

 
92

 
348

 
 
$
70

 
$
32

 
$
66
Disclosure of weighted average assumptions used
The fair value of stock options outstanding was estimated using the Black-Scholes valuation model with the following weighted average assumptions:
 
 
2019

 
2018

 
2017

Fair value
 
$
7.88

 
$
3.33

 
$
11.82

Share price
 
$
42.00

 
$
32.94

 
$
44.92

Expected volatility
 
26.7%

 
27.4%

 
27.1%

Expected dividend yield
 
3.6%

 
4.1%

 
2.5%

Risk free interest rate
 
1.7%

 
1.9%

 
1.8%

Expected forfeiture rate
 
4.3%

 
4.2%

 
5.0%

Expected stock option life (1)
 
4.4 years

 
4.4 years

 
4.5 years

(1)
At original time of grant.