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Employee Future Benefits (Tables)
 12 Months Ended
Dec. 31, 2022
Text block [abstract]  
Summary of Pension and Retiree Welfare Plans
(c) Pension and retiree welfare plans
The following tables present the reconciliation of defined benefit obligation and fair value of plan assets for the pension plans and retiree welfare plans.
 
    Pension plans           Retiree welfare plans  
For the years ended December 31,
  
2022
     2021          
2022
     2021  
Changes in defined benefit obligation:
                                        
Opening balance
  
$
4,560
 
   $ 4,901            
$
584
 
   $ 638  
Current service cost
  
 
43
 
     44            
 
–
 
     –  
Past service cost - amendment
  
 
(6
) 
     –            
 
–
 
     –  
Interest cost
  
 
127
 
     115            
 
16
 
     15  
Plan participants’ contributions
  
 
–
 
     –            
 
3
 
     3  
Actuarial losses (gains) due to:
                                        
Experience
  
 
5
 
     3            
 
(13
) 
     –  
Demographic assumption changes
  
 
–
 
     7            
 
–
 
     1  
Economic assumption changes
  
 
(835
) 
     (194 )           
 
(112
) 
     (29 ) 
Benefits paid
  
 
(299
) 
     (303 )           
 
(40
) 
     (42 ) 
Impact of changes in foreign exchange rates
  
 
199
 
     (13 )           
 
28
 
     (2 ) 
Defined benefit obligation, December 31
  
$
  3,794
 
   $   4,560            
$
  466
 
   $   584  
       
    Pension plans           Retiree welfare plans  
For the years ended December 31,
  
2022
     2021          
2022
     2021  
Change in plan assets:
                                        
Fair value of plan assets, opening balance
  
$
4,510
 
   $ 4,595            
$
587
 
   $ 606  
Interest income
  
 
127
 
     109            
 
16
 
     14  
Return on plan assets (excluding interest income)
  
 
(869
) 
     70            
 
(91
) 
     (1 ) 
Employer contributions
  
 
59
 
     61            
 
11
 
     11  
Plan participants’ contributions
  
 
–
 
     –            
 
3
 
     3  
Benefits paid
  
 
(299
) 
     (303 )           
 
(40
) 
     (42 ) 
Administration costs
  
 
(11
) 
     (9 )           
 
(2
) 
     (2 ) 
Impact of changes in foreign exchange rates
  
 
205
 
     (13 )           
 
39
 
     (2 ) 
Fair value of plan assets, December 31
  
$
  3,722
 
   $   4,510            
$
  523
 
   $   587  
Summary of Amounts Recognized in Consolidated Statements of Financial Position
(d) Amounts recognized in the Consolidated Statements of Financial Position
The following table presents the deficit (surplus) and net defined benefit liability (asset) for the pension plans and retiree welfare plans.
 
    Pension plans           Retiree welfare plans  
As at December 31,
  
2022
     2021          
2022
     2021  
Development of net defined benefit liability
                                        
Defined benefit obligation
  
$
3,794
 
   $ 4,560            
$
  466
 
   $ 584  
Fair value of plan assets
  
 
3,722
 
       4,510            
 
523
 
     587  
Deficit (surplus)
  
 
72
 
     50            
 
(57
) 
     (3 ) 
Effect of asset limit
(1)
  
 
48
 
     37            
 
–
 
     –  
Deficit (surplus) and net defined benefit liability (asset)
  
 
120
 
     87            
 
(57
) 
     (3 ) 
Deficit is comprised of:
                                        
Funded or partially funded plans
  
 
(441
) 
     (600 )           
 
(168
) 
       (154 ) 
Unfunded plans
  
 
561
 
     687            
 
111
 
     151  
Deficit (surplus) and net defined benefit liability (asset)
  
$
  120
 
   $ 87            
$
(57
) 
   $ (3 ) 
 
(1)
The asset limit relates to a registered pension plan in Canada. The surplus in that plan is above the present value of economic benefits that can be derived by the Company through reductions in future contributions. For the other funded pension plans, the present value of the economic benefits available in the form of reductions in future contributions to the plans remains greater than the current surplus.
Summary of Disaggregation of Defined Benefit Obligation
(e) Disaggregation of defined benefit obligation
The following table presents components of the defined benefit obligation between active members and inactive and retired members.
 
   
U.S. plans
          
Canadian plans
  
    Pension plans     Retiree welfare plans           Pension plans     Retiree welfare plans  
As at December 31,
  
2022
     2021    
2022
     2021          
2022
     2021    
2022
     2021  
Active members
  
$
509
 
   $ 537    
$
11
 
   $ 17            
$
125
 
   $ 184    
$
–
 
   $ –  
Inactive and retired members
  
 
2,006
 
     2,371    
 
344
 
     416            
 
1,154
 
     1,468    
 
111
 
     151  
Total
  
$
  2,515
 
   $   2,908    
$
  355
 
   $   433            
$
  1,279
 
   $   1,652    
$
  111
 
   $   151  
Summary of Major Categories of Plan Assets and Actual Per Cent Allocation to Each Category
(f) Fair value measurements
The following tables present major categories of plan assets and the allocation to each category.
 
    U.S. plans
(1)
           Canadian plans
(2)
  
    Pension plans     Retiree welfare plans           Pension plans     Retiree welfare plans  
As at December 31, 2022
   Fair value     % of total     Fair value     % of total           Fair value     % of total     Fair value     % of total  
Cash and cash equivalents
  
$
35
 
  
 
1%
 
  
$
22
 
  
 
4%
 
          
$
9
 
  
 
1%
 
  
$
–
 
  
 
–
 
Public equity securities
(3)
  
 
377
 
  
 
15%
 
  
 
41
 
  
 
8%
 
          
 
233
 
  
 
20%
 
  
 
–
 
  
 
–
 
Public debt securities
  
 
1,509
 
  
 
58%
 
  
 
445
 
  
 
85%
 
          
 
898
 
  
 
79%
 
  
 
–
 
  
 
–
 
Other investments
(4)
  
 
660
 
  
 
26%
 
  
 
15
 
  
 
3%
 
          
 
1
 
  
 
0%
 
  
 
–
 
  
 
–
 
Total
  
$
  2,581
 
  
 
100%
 
  
$
  523
 
  
 
100%
 
          
$
  1,141
 
  
 
100%
 
  
$
  –
 
  
 
–
 
    U.S. plans
(1)
           Canadian plans
(2)
  
    Pension plans     Retiree welfare plans           Pension plans     Retiree welfare plans  
As at December 31, 2021   Fair value     % of total     Fair value     % of total           Fair value     % of total     Fair value     % of total  
Cash and cash equivalents
   $ 90       3%     $ 21       4%             $ 14       1%     $ –       –  
Public equity securities
(3)
     600       20%       57       10%               322       22%       –       –  
Public debt securities
     1,863       61%       501       85%               1,144       77%       –       –  
Other investments
(4)
     475       16%       8       1%               2       0%       –       –  
Total
   $   3,028       100%     $   587       100%             $   1,482       100%     $   –       –  
 
(1)
The U.S. pension and retiree welfare plan assets have daily quoted prices in active markets, except for the private debt, infrastructure, private equity, real estate, timber and agriculture assets. In the aggregate, the latter assets represent approximately 15% of all U.S. pension and retiree welfare plan assets as at December 31, 2022 (2021 – 7%).
(2)
All the Canadian pension plan assets have daily quoted prices in active markets, except for the group annuity contract assets that represent approximately
0.1
% of all Canadian pension plan assets as at December 31, 2022 (2021 –
0.1
%).
(3)
Equity securities include direct investments in MFC common shares of $1.2 (2021 – $1.2) in the U.S. retiree welfare plan and $nil (2021 – $nil) in Canada.
(4)
Other U.S. plan assets include investment in real estate, private debt, infrastructure, private equity, timberland and agriculture, and managed futures. Other Canadian pension plan assets include investment in the group annuity contract.
Summary of Components of Net Benefit Cost for Pension Plans and Retiree Welfare Plans
(g) Net benefit cost recognized in the Consolidated Statements of Income
The following table presents components of the net benefit cost for the pension plans and retiree welfare plans.
 
    Pension plans           Retiree welfare plans  
For the years ended December 31,
  
2022
     2021          
2022
     2021  
Defined benefit current service cost
(1)
  
$
  43
 
   $ 44            
$
–
 
   $ –  
Defined benefit administrative expenses
  
 
11
 
     9            
 
2
 
     2  
Past service cost-plan amendments and curtailments
  
 
(6
) 
     –            
 
–
 
     –  
Service cost
  
 
48
 
     53            
 
2
 
     2  
Interest on net defined benefit (asset) liability
  
 
2
 
     6            
 
–
 
     1  
Defined benefit cost
  
 
50
 
     59            
 
2
 
     3  
Defined contribution cost
  
 
85
 
     90            
 
–
 
     –  
Net benefit cost
  
$
135
 
   $   149            
$
  2
 
   $   3  
 
(1)
 
There are no significant current service costs for the retiree welfare plans as they are closed and mostly frozen. The remeasurement gain or loss on these plans is due to the volatility of discount rates and investment returns.
Summary of Re-measurement Effects Recognized in Other Comprehensive Income
(h)
Re-measurement
effects recognized in Other Comprehensive Income
The following table presents components of the re-measurement effects recognized in Other Comprehensive Income for the pension plans and retiree welfare plans.
 
    Pension plans           Retiree welfare plans  
For the years ended December 31,
  
2022
     2021          
2022
     2021  
Actuarial gains (losses) on defined benefit obligations due to:
                                        
Experience
  
$
(5
) 
   $ (3 )           
$
13
 
   $ –  
Demographic assumption changes
  
 
–
 
     (7 )           
 
–
 
     (1 ) 
Economic assumption changes
  
 
835
 
     194            
 
112
 
     29  
Return on plan assets (excluding interest income)
  
 
(869
) 
     70            
 
(91
) 
     (1 ) 
Change in effect of asset limit (excluding interest)
  
 
(10
) 
     (37 )           
 
–
 
     –  
Total
re-measurement
effects
  
$
  (49
) 
   $   217            
$
  34
 
   $   27  
Summary of Key Assumptions Used by to Determine Defined Benefit Obligation and Net Benefit Cost for Defined Benefit Pension Plans and Retiree Welfare Plans
The following table presents key assumptions used by the Company to determine the defined benefit obligation and net benefit cost for the defined benefit pension plans and retiree welfare plans.
 
    U.S. Plans           Canadian Plans  
    Pension plans     Retiree welfare plans           Pension plans     Retiree welfare plans  
For the years ended December 31,
  
2022
     2021    
2022
     2021          
2022
     2021    
2022
     2021  
To determine the defined benefit obligation at end of year
(1)
:
                                                                        
Discount rate
  
 
5.0%
 
     2.7%    
 
5.0%
 
     2.7%            
 
5.3%
 
     3.1%    
 
5.3%
 
     3.2%  
Initial health care cost trend rate
(2)
  
 
n/a
 
     n/a    
 
7.8%
 
     7.0%            
 
n/a
 
     n/a    
 
5.3%
 
     5.4%  
To determine the defined benefit cost for the year
(1)
:
                                                                        
Discount rate
  
 
2.7%
 
     2.4%    
 
2.7%
 
     2.4%            
 
3.1%
 
     2.5%    
 
3.2%
 
     2.6%  
Initial health care cost trend rate
(2)
  
 
n/a
 
     n/a    
 
7.0%
 
     7.3%            
 
n/a
 
     n/a    
 
5.4%
 
     5.5%  
 
(1)
Inflation and salary increase assumptions are not shown as they do not materially affect obligations and cost.
(2)
The health care cost trend rate used to measure the U.S. based retiree welfare obligation was 7.8% grading to 4.8% for 2035 and years thereafter (2021 – 7.0% grading to 4.5% for 2032) and to measure the net benefit cost was 7.0% grading to 4.5% for 2032 and years thereafter (2021 – 7.3% grading to 4.5% for 2032). In Canada, the rate used to measure the retiree welfare obligation was 5.3% grading to 4.8% for 2026 and years thereafter (2021 – 5.4% grading to 4.8% for 2026) and to measure the net benefit cost was 5.4% grading to 4.8% for 2026 and years thereafter (2021 – 5.5% grading to 4.8% for 2026).
Summary of Life Expectancies Underlying Values of Obligations in Defined Benefit Pension and Retiree Welfare Plans The following table presents current life expectancies underlying the values of the obligations in the defined benefit pension and retiree welfare plans.
As at December 31, 2022
   U.S.     Canada  
Life expectancy (in years) for those currently age 65
                
Males
  
 
22.1
 
  
 
23.9
 
Females
  
 
23.6
 
  
 
25.7
 
Life expectancy (in years) at age 65 for those currently age 45
                
Males
  
 
23.5
 
  
 
24.8
 
Females
  
 
25.0
 
  
 
26.6
 
Summary of Potential Impact on Obligations Arising From Changes in Key Assumptions The following table sets out the potential impact on the obligations arising from changes in the key assumptions. The sensitivities assume all other assumptions are held constant. In actuality, inter-relationships with other assumptions may exist.
 
As at December 31, 2022
   Pension plans     Retiree welfare plans  
Discount rate:
                
Impact of a 1% increase
  
$
(279
) 
  
$
  (39
) 
Impact of a 1% decrease
  
 
322
 
  
 
45
 
Health care cost trend rate:
                
Impact of a 1% increase
  
 
  n/a
 
  
 
10
 
Impact of a 1% decrease
  
 
n/a
 
  
 
(9
) 
Mortality rates
(1)
                
Impact of a 10% decrease
  
 
93
 
  
 
8
 
 
(1)
If the actuarial estimates of mortality are adjusted in the future to reflect unexpected decreases in mortality, the effect of a 10% decrease in mortality rates at each future age would be an increase in life expectancy at age
65
of 0.8 years for U.S. males and females, 0.8 years for Canadian females and 0.7
years for Canadian males, respectively. 
Summary of Weighted Average Duration of the Defined Benefit Obligations
(k) Maturity profile
The following table presents weighted average duration (in years) of the defined benefit obligations.
 
    Pension plans           Retiree welfare plans  
As at December 31,
  
2022
     2021          
2022
     2021  
U.S. plans
  
 
8.2
 
     9.7            
 
8.2
 
     9.5  
Canadian plans
  
 
10.6
 
     12.4            
 
11.1
 
     13.3  
Summary of Cash Payments
(l) Cash flows – contributions
The following table presents total cash payments for all employee future benefits, comprised of cash contributed by the Company to funded defined benefit pension and retiree welfare plans, cash payments directly to beneficiaries in respect of unfunded pension and retiree welfare plans, and cash contributed to defined contribution pension plans.
 
    Pension plans           Retiree welfare plans  
For the years ended December 31,
  
2022
     2021          
2022
     2021  
Defined benefit plans
  
$
59
 
   $ 61            
$
11
 
   $ 11  
Defined contribution plans
  
 
85
 
     90            
 
–
 
     –  
Total
  
$
 
 
  144
 
   $   151            
$
  11
 
   $   11