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EMPLOYEE BENEFITS OBLIGATIONS
 12 Months Ended
Mar. 31, 2021
Disclosure of share-based payments arrangements [Abstract]  
EMPLOYEE BENEFITS OBLIGATIONS EMPLOYEE BENEFITS OBLIGATIONS
Defined benefit pension plans
The Company has three registered funded defined benefit pension plans in Canada (two for employees and one for designated executives) that provide benefits based on length of service and final average earnings. The Company also maintains funded pension plans for employees in the Netherlands and United Kingdom that provide benefits based on similar provisions.
 
The Company’s annual contributions, to fund both benefits accruing in the year and deficits accumulated over prior years, and the plans’ financial position are determined based on actuarial valuations. Applicable pension legislations prescribe minimum funding requirements. 

In addition, the Company maintains unfunded plans in Canada, United States and Germany that provide defined benefits based on length of service and final average earnings. These unfunded plans are the sole obligation of the Company, and there is no requirement to fund them. However, the Company is obligated to pay the benefits when they become due. As at March 31, 2021, the Company has issued letters of credit totalling $68.0 million (2020 – $60.6 million) to collateralize the obligations under the Canadian plans.
 
The funded plans are trustee administered funds. Plan assets held in trusts are governed by local regulations and practices in each country, as is the nature of the relationship between the Company and the trustees and their composition. Responsibility for governance of the plans, including investment decisions and contribution schedules, lies jointly with the Company and the board of trustees.
The employee benefits obligations are as follows:
20212020
Funded defined benefit pension obligations$761.5 $649.2 
Fair value of plan assets641.9 530.1 
Funded defined benefit pension obligations – net$119.6 $119.1 
Unfunded defined benefit pension obligations102.6 93.7 
Employee benefits obligations$222.2 $212.8 

Changes in funded defined benefit pension obligations and fair value of plan assets are as follows:
  2021  2020
CanadianForeignTotalCanadianForeignTotal
Pension obligations, beginning of year$576.9 $72.3 $649.2 $597.2 $67.2 $664.4 
Current service cost28.4 2.4 30.8 30.4 2.1 32.5 
Interest cost20.5 1.1 21.6 18.0 1.1 19.1 
Past service cost1.0 (2.8)(1.8)— — — 
Actuarial loss (gain) arising from:    
Experience adjustments(0.6)(1.7)(2.3)9.2 0.4 9.6 
Economic assumptions72.3 9.1 81.4 (64.3)0.5 (63.8)
Demographic assumptions— (1.3)(1.3)— (0.4)(0.4)
Employee contributions7.4 0.5 7.9 7.2 0.6 7.8 
Pension benefits paid(18.9)(1.4)(20.3)(20.8)(1.5)(22.3)
Foreign currency exchange differences— (3.7)(3.7)— 2.3 2.3 
Pension obligations, end of year$687.0 $74.5 $761.5 $576.9 $72.3 $649.2 
Fair value of plan assets, beginning of year$467.8 $62.3 $530.1 $485.3 $58.4 $543.7 
Interest income16.9 1.0 17.9 14.9 0.9 15.8 
Return on plan assets, excluding amounts    
included in interest income79.7 6.3 86.0 (40.0)(0.2)(40.2)
Employer contributions22.7 1.9 24.6 22.1 2.3 24.4 
Employee contributions7.4 0.5 7.9 7.2 0.6 7.8 
Pension benefits paid(18.9)(1.4)(20.3)(20.8)(1.5)(22.3)
Administrative costs(0.9)(0.2)(1.1)(0.9)(0.2)(1.1)
Foreign currency exchange differences— (3.2)(3.2)— 2.0 2.0 
Fair value of plan assets, end of year$574.7 $67.2 $641.9 $467.8 $62.3 $530.1 

Changes in unfunded defined benefit pension obligations are as follows:
  2021  2020
 CanadianForeignTotalCanadianForeignTotal
Pension obligations, beginning of year$78.0 $15.7 $93.7 $77.2 $14.7 $91.9 
Current service cost3.2 0.6 3.8 3.3 0.6 3.9 
Interest cost2.6 0.2 2.8 2.1 0.2 2.3 
Past service cost— — — — (0.1)(0.1)
Actuarial loss (gain) arising from:  
Experience adjustments— — — 7.7 (0.6)7.1 
Economic assumptions7.9 (0.8)7.1 (7.2)1.1 (6.1)
Pension benefits paid(3.1)(0.7)(3.8)(2.8)(0.7)(3.5)
Business combinations— — — (2.3)— (2.3)
Foreign currency exchange differences— (1.0)(1.0)— 0.5 0.5 
Pension obligations, end of year$88.6 $14.0 $102.6 $78.0 $15.7 $93.7 
Net pension cost is as follows:
  2021  2020
 CanadianForeignTotalCanadianForeignTotal
Funded plans      
Current service cost$28.4 $2.4 $30.8 $30.4 $2.1 $32.5 
Interest cost20.5 1.1 21.6 18.0 1.1 19.1 
Interest income(16.9)(1.0)(17.9)(14.9)(0.9)(15.8)
Past service cost1.0 (2.8)(1.8)— — — 
Administrative cost0.9 0.2 1.1 0.9 0.2 1.1 
Net pension cost of funded plans$33.9 $(0.1)$33.8 $34.4 $2.5 $36.9 
Unfunded plans     
Current service cost$3.2 $0.6 $3.8 $3.3 $0.6 $3.9 
Interest cost2.6 0.2 2.8 2.1 0.2 2.3 
Past service cost— — — — (0.1)(0.1)
Net pension cost of unfunded plans$5.8 $0.8 $6.6 $5.4 $0.7 $6.1 
Total net pension cost$39.7 $0.7 $40.4 $39.8 $3.2 $43.0 

During the year ended March 31, 2021, pension costs of $18.5 million (2020 – $15.8 million) have been charged in cost of sales, $5.5 million (2020 – $4.3 million) in research and development expenses, $10.2 million (2020 – $14.3 million) in selling, general and administrative expenses, $6.5 million (2020 – $5.6 million) in finance expense, and a net gain related to past service cost of $1.8 million (2020 - nil) has been recorded in restructuring, integration and acquisition costs. In addition, pension costs of $1.5 million (2020 – $3.0 million) were capitalized.
 
 Fair value of the plan assets, by major categories, are as follows:
 (amounts in millions)
20212020
  QuotedUnquotedTotalQuotedUnquotedTotal
Canadian plans       
Equity funds
      
Canadian$— $78.2 $78.2 $— $55.2 $55.2 
Foreign— 187.3 187.3 — 165.7 165.7 
Bond funds
Government— 113.0 113.0 — 92.2 92.2 
Corporate— 104.3 104.3 — 85.2 85.2 
Cash and cash equivalents
— 11.2 11.2 — 4.3 4.3 
Other
— 80.7 80.7 — 65.2 65.2 
Total Canadian plans $— $574.7 $574.7 $— $467.8 $467.8 
Foreign plans       
Insured annuities
$— $60.3 $60.3 $— $55.9 $55.9 
Equity instruments
2.6 — 2.6 2.4 — 2.4 
Debt instruments
Corporate3.7 — 3.7 3.5 — 3.5 
Other
— 0.6 0.6 — 0.5 0.5 
Total Foreign plans $6.3 $60.9 $67.2 $5.9 $56.4 $62.3 
Total plans $6.3 $635.6 $641.9 $5.9 $524.2 $530.1 

As at March 31, 2021 and March 31, 2020, there were no common shares of the Company in the pension plan assets.

Significant assumptions (weighted average) used are as follows:
 CanadianForeign
 2021202020212020
Pension obligations as at March 31:    
Discount rate3.32 %3.96 %1.06 %1.46 %
Compensation rate increases3.65 %3.66 %3.01 %2.92 %
Net pension cost for years ended March 31:
Discount rate3.96 %3.33 %1.46 %1.64 %
Compensation rate increases3.66 %3.66 %2.92 %2.92 %
Assumptions regarding future mortality are based on actuarial advice in accordance with published statistics and mortality tables and experience in each territory. The mortality tables and the average life expectancy in years for a member age 45 and 65 are as follows:
As at March 31, 2021Life expectancy over 65 for a member
(in years)
 Male  Female
CountryMortality tableat age 45at age 65 at age 45at age 65
CanadaCPM private tables23.522.125.624.3
NetherlandsAG202023.321.425.323.4
GermanyHeubeck RT2018G23.120.326.023.8
United KingdomS2PxA CMI 2020 23.022.025.223.9
United StatesCPM private tables24.823.426.325.0

As at March 31, 2020Life expectancy over 65 for a member
(in years)
   Male Female
CountryMortality tableat age 45at age 65at age 45at age 65
CanadaCPM private tables 23.522.025.624.3
NetherlandsAG201823.921.825.923.7
GermanyHeubeck RT2018G23.020.225.923.7
United KingdomS2PxA CMI 201823.122.025.122.0
United StatesCPM private tables 24.723.326.224.9

As at March 31, 2021, the weighted average duration of the defined benefit obligation is 19 years.

The impact on the defined benefit obligation as a result of a 0.25% change in the significant assumptions as at March 31, 2021 are as follows:
 Funded plans Unfunded plans 
Canadian ForeignCanadianForeignTotal
Discount rate:       
Increase$(30.3)
$
(3.8)
$
(2.9)
$
(0.4)
$
(37.4)
Decrease32.5 4.1 3.1 0.5 40.2 
Compensation rate:      
Increase8.3 0.2 0.5 — 9.0 
Decrease(8.5)(0.2)(0.5)— (9.2)

Through its defined benefit plans, the Company is exposed to a number of risks, the most significant being the exposure to asset volatility, to changes in bond yields and to changes in life expectancy. The plan liabilities are calculated using a discount rate set with reference to corporate bond yields, if plan assets underperform against this yield, this will create a deficit. A decrease in corporate bond yields will increase plan liabilities, although this will be partially offset by an increase in the value of the plans’ bond holdings. The plans’ obligations are to provide benefits for the duration of the life of its members, therefore, increases in life expectancy will result in an increase in the plans’ liabilities.

Contributions reflect actuarial assumptions of future investment returns, salary projections and future service benefits. The expected employer contributions and expected benefits paid for the next fiscal year are as follows:
CanadianForeignTotal
Expected employer contributions in funded plans

$22.3 $2.3 $24.6 
Expected benefits paid in unfunded plans3.5 0.7 4.2 
EMPLOYEE COMPENSATION
Total employee compensation expense recognized in income is as follows:
 (amounts in millions)
20212020
Salaries and other short-term employee benefits $1,095.9 $1,218.6 
Share-based payments expense, net of equity swap (Note 26)
53.0 42.7 
Post-employment benefits – defined benefit plans (Note 22)38.9 40.0 
Post-employment benefits – defined contribution plans17.9 19.2 
Termination benefits 43.9 4.4 
Total employee compensation$1,249.6 $1,324.9