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STOCK-BASED COMPENSATION (Tables)
 12 Months Ended
Dec. 31, 2019
Share-based Payment Arrangements [Abstract]  
Disclosure of significant measurement estimates to determine fair value of stock-based compensation The table below shows the weighted average fair value of stock options granted during 2019 and 2018 and the principal assumptions used in applying the Black-Scholes model for non-performance-based options and trinomial option pricing models for performance-based options to determine their fair value at the grant date.
 
 
Years ended December 31
 
 
 
2019

2018

 
 
 
 
Weighted average fair value
 

$8.11


$8.42

 
 
 
 
Risk-free interest rate
 
1.9
%
1.7
%
Dividend yield
 
2.8
%
3.3
%
Volatility of Class B Non-Voting Shares
 
16.4
%
20.1
%
Weighted average expected life
 
5.5 years

6.2 years

Weighted average time to vest
 
n/a

2.5 years

Weighted average time to expiry
 
n/a

10.0 years

Employee exit rate
 
n/a

4.9
%
Suboptimal exercise factor
 
n/a

1.4

Lattice steps
 
n/a

50
Disclosure of stock-based compensation expense
Below is a summary of our stock-based compensation expense, which is included in employee salaries and benefits expense.
 
 
Years ended December 31
 
(In millions of dollars)
 
2019

2018

 
 
 
 
Stock options
 
1

17

Restricted share units
 
47

51

Deferred share units
 
4

30

Equity derivative effect, net of interest receipt
 
18

(33
)
 
 
 
 
Total stock-based compensation expense
 
70

65
Disclosure of number and weighted average exercise prices of share options
Below is a summary of the stock option plans, including performance options.
 
Year ended December 31, 2019
 
Year ended December 31, 2018
 
(In number of units, except prices)
Number of options

Weighted average exercise price

Number of options

Weighted average exercise price

 
 
 
 
 
Outstanding, beginning of year
2,719,612


$53.22

2,637,890


$49.42

Granted
1,179,160


$72.03

850,700


$58.88

Exercised
(743,977
)

$46.56

(679,706
)

$45.20

Forfeited
—

—

(89,272
)

$55.94

 
 
 
 
 
Outstanding, end of year
3,154,795


$61.82

2,719,612


$53.22

 
 
 
 
 
Exercisable, end of year
993,645


$52.38

1,059,590


$46.26
Disclosure of range of exercise prices of outstanding share options
Below is a summary of the range of exercise prices, the weighted average exercise price, and the weighted average remaining contractual life as at December 31, 2019.
 
Options outstanding
Options exercisable
Range of exercise prices
Number outstanding

Weighted average remaining contractual life (years)
Weighted average exercise price

Number exercisable

Weighted average exercise price

 
 
 
 
 
 
$42.85 - $44.99
153,937

4.82

$44.24

153,937


$44.24

$45.00 - $49.99
506,011

4.67

$48.88

442,257


$48.73

$50.00 - $59.99
910,595

7.76

$58.10

265,564


$57.82

$60.00 - $64.99
415,057

7.72

$62.91

122,459


$62.82

$65.00 - $69.99
129,025

9.38

$66.21

9,428


$68.10

$70.00 - $73.00
1,040,170

8.90

$73.00

—

—

 
 
 


 
 
 
3,154,795

7.56

$61.82

993,645


$52.38
Disclosure of number and weighted average exercise prices of other equity instruments
Below is a summary of the DSUs outstanding, including performance DSUs.
 
 
Years ended December 31
 
(In number of units)
 
2019

2018

 
 
 
 
Outstanding, beginning of year
 
2,004,440

2,327,647

Granted and reinvested dividends
 
110,003

131,051

Exercised
 
(348,285
)
(334,930
)
Forfeited
 
(24,274
)
(119,328
)
 
 
 
 
Outstanding, end of year
 
1,741,884

2,004,440


Below is a summary of the RSUs outstanding, including performance RSUs.
 
 
Years ended December 31
 
(In number of units)
 
2019

2018

 
 
 
 
Outstanding, beginning of year
 
2,218,925

1,811,845

Granted and reinvested dividends
 
1,013,900

1,217,487

Exercised
 
(582,314
)
(597,015
)
Forfeited
 
(177,737
)
(213,392
)
 
 
 
 
Outstanding, end of year
 
2,472,774

2,218,925