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Stock Based Compensation (Tables)
 12 Months Ended
Dec. 31, 2011
Stock Based Compensation [Abstract]  
Schedule of options outstanding
                         
    Options outstanding    
   

Number

of options

     Weighted
average
exercise
price		     Number
of options
exercisable

 
       

Outstanding at December 31, 2008

     5,492,290     Cdn$ 41.01     5,448,290 

Granted

     2,150,000       16.55     — 

Exercised [i]

     (93,578 )      31.51     (93,578)

Cancelled [i]

     (398,168 )      32.36     (378,168)

Vested

     —       —     12,000 

 

Outstanding at December 31, 2009

     7,150,544     Cdn$ 34.26     4,988,544 

Granted

     6,341,000       34.04     — 

Exercised

     (1,504,616 )      34.31     (1,504,616)

Cancelled [ii]

     (844,478 )      33.04     (844,478)

Vested

     —       —     722,666 

 

Outstanding at December 31, 2010

     11,142,450     Cdn$ 34.22     3,362,116 

Exercised

     (2,737,253 )      33.28     (2,737,253)

Cancelled [iii]

     (1,585,830 )      47.64     (1,474,164)

Vested

     —       —     2,868,001 

 

Outstanding at December 31, 2011

     6,819,367       31.48     2,018,700 

 

The total intrinsic value of options exercised during 2011 was $19 million [2010 - $14 million; 2009 - $nil].

 

  [i]

On August 12, 2009, following approval by the Company’s Corporate Governance and Compensation Committee and in accordance with the Amended and Restated Incentive Stock Option Plan, the Company granted stock appreciation rights [“SARs”] to certain executives in respect of 383,400 previously granted and unexercised stock options.

 

On August 14, 2009, 332,822 SARs were exercised and an equal number of previously granted and unexercised stock options were surrendered and cancelled. On exercise of the SARs, the executives received, in aggregate, cash of $1 million, representing an amount equal to the difference between the aggregate fair market value of the shares covered by the surrendered options and the aggregate exercise price of such surrendered options. Fair market value was determined based on the weighted average closing price of the Company’s Common Shares on the New York Stock Exchange [“NYSE”] for the five consecutive trading days ending on the trading day immediately prior to the date of exercise.

In addition, during the third quarter of 2009, 50,578 SARs were cancelled upon exercise of the corresponding number of options.

 

  [ii]

On August 19, 2010, options to acquire 243,000 Common Shares were surrendered for cancellation in exchange for payment of the in-the-money value of such options on such date. The aggregate in-the-money value of the options surrendered was $4 million and was charged to contributed surplus.

 

On November 8, 2010, options to acquire 386,666 Common Shares were surrendered for cancellation in exchange for payment of the in-the-money value of such options on such date. The aggregate in-the-money value of the options surrendered was $8 million and was charged to contributed surplus.

 

  [iii]

On June 22, 2011, the Company’s Honorary Chairman and Founder, Mr. Stronach, exercised 1,083,333 options on a cashless basis in accordance with applicable stock option plans. On exercise, cash payments totalling $25 million were made to Mr. Stronach which represented the difference between the aggregate fair market value of the Option Shares based on the closing price of the Company’s Common Shares on the Toronto Stock Exchange [“TSX”] on the date of exercise and the aggregate Exercise Price of all such options surrendered. Net of a tax benefit of $4 million, $7 million was charged to contributed surplus and $14 million was charged to retained earnings.

 

On July 13, 2011, 200,001 options were exercised on a cashless basis in accordance with applicable stock option plans. On exercise, cash payments totalling $5 million were made to the stock option holder which represented the difference between the aggregate fair market value of the Option Shares based on the closing price of the Company’s Common Shares on the TSX on the date of exercise and the aggregate Exercise Price of all such options surrendered. Net of a tax benefit of $2 million, $1 million was charged to contributed surplus and $2 million was charged to retained earnings.

Summary of characteristics of options outstanding
      4,016,666       4,016,666     4,016,666   4,016,666
    Options outstanding    
   

Number 

of options 

     Remaining 
contractual 
life [years] 		     Number
of options
exercisable

 
       

$15 to $20

     1,317,203        4.2      600,536

$20 to $25

     —        —      —

$25 to $30

     4,016,666        5.2      716,666

$30 to $35

     35,870        0.6      35,870

$35 to $40

     71,320        4.9      71,320

$40 to $45

     160,342        1.1      160,342

$45 to $50

     10,000        2.0      10,000

$50 to $55

     1,176,000        6.0      392,000

Over $55

     31,966        0.5      31,966

 
      6,819,367              2,018,700

 

Weighted average exercise price

     Cdn$  31.48              Cdn$  31.74

 

Weighted average life remaining [years]

     4.96              4.52

 

Aggregate intrinsic value at December 31, 2011

     $       17              $         4

 
Fair value of stock options granted and the compensation expenses
      00000000       00000000       00000000  
    2011     2010     2009  

 

  
       

Risk-free interest rate

     —       2.26%       1.66%  

Expected dividend yield

     —       2.00%       2.05%  

Expected volatility

     —       35%       31%  

Expected time until exercise

     —       4 years       4 years  

 

  
       

Weighted average fair value of options granted or modified in year (Cdn$)

   $ —     $ 10.00     $ 3.60  

 

  
       

Compensation expense recorded in selling, general and administrative expense [iv]

   $ 21     $ 43     $ 4  

 

  

 

  [iv]

During 2010, option agreements with three departing executives were modified resulting in a one-time charge to compensation expense of $20 million. These charges represent the fair value of the options at the date of modification net of originally measured compensation cost which has been reversed.

 
Schedule of company's long-term retention program
                         
    2011     2010     2009   

 

  
       

Common Shares awarded and not released

     1,026,304       1,182,736       1,371,978   

 

  
       

Reduction in stated value of Common Shares

   $ 34     $ 39     $ 45   

 

  
       

Compensation expense recorded in selling, general and administrative expense

   $ 10     $ 7     $ 8   

 

  
       

Unamortized compensation expense recorded as a reduction of shareholders’ equity

   $ 5     $ 10     $ 18   

 

  
Schedule of restricted stock unit programs outstanding
                                 
    Equity
classified
RSUs		     Liability
classified
RSUs		     Liability
classified
DSUs		     Total    

 

  
         

Outstanding at December 31, 2008

     109,146       6,033       92,642       207,821    

Granted

     —       8,500       47,843       56,343    

Dividend equivalents

     —       74       664       738    

Redeemed

     (109,146 )      (2,507 )      —       (111,653)   

 

  

Outstanding at December 31, 2009

     —       12,100       141,149       153,249    

Granted

     20,940       26,000       31,983       78,923    

Dividend equivalents

     —       383       1,619       2,002    

Redeemed

     —       (3,636 )      —       (3,636)   

 

  

Outstanding at December 31, 2010

     20,940       34,847       174,751       230,538    

Granted

     196,397       3,150       25,693       225,240    

Dividend equivalents

     —       948       4,621       5,569    

Redeemed

     —       (10,180 )      —       (10,180)   

 

  

Outstanding at December 31, 2011

     217,337       28,765       205,065       451,167