FINANCIAL INSTRUMENTS AND FINANCIAL RISK MANAGEMENT (Tables)
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12 Months Ended |
Dec. 31, 2025 |
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| FINANCIAL INSTRUMENTS AND FINANCIAL RISK MANAGEMENT |
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| Schedule of carrying value and fair value of long-term debt and derivative financial instruments |
The carrying value and fair value of long-term debt and derivative financial instruments as of December 31, 2025 and 2024 are as follows: | | | | | | | | | | | | | | | 2025 | | 2024 | | | Carrying | | Fair | | Carrying | | Fair | Asset (liability) | | value | | value | | value | | value | Long-term debt1 | | $ | (6,824.3) | | $ | (6,849.3) | | $ | (7,619.7) | | $ | (7,540.0) | Derivative financial instruments2 | | | | | | | | | | | | | Foreign exchange forward contracts | | | (1.5) | | | (1.5) | | | 6.9 | | | 6.9 | Interest rate swaps | | | (7.2) | | | (7.2) | | | (7.2) | | | (7.2) | Cross-currency swaps | | | 33.0 | | | 33.0 | | | 141.5 | | | 141.5 |
| 1 | The carrying value of long-term debt excludes financing costs. |
| 2 | The net fair value of derivative financial instruments designated as cash flow hedges is an asset position of $24.3 million as of December 31, 2025 ($141.2 million in 2024). |
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| Schedule of changes to the provision for expected credit losses |
The following table shows changes to the provision for expected credit losses for the years ended December 31, 2025 and 2024: | | | | | | | | | 2025 | | 2024 | Balance at beginning of year | | $ | 39.7 | | $ | 58.6 | Changes in expected credit losses charged to income | | | 49.9 | | | 49.5 | Write-off | | | (46.7) | | | (68.4) | Balance at end of year | | $ | 42.9 | | $ | 39.7 |
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| Schedule of maturities of financial instruments |
As of December 31, 2025, material contractual obligations related to financial instruments included capital repayment and interest on long-term debt and on lease liabilities and obligations related to derivative financial instruments, less estimated future receipts on derivative financial instruments. These obligations and their maturities are as follows: | | | | | | | | | | | | | | | | | | | | | Less than | | | | | | | | 5 years | | | Total | | 1 year | | 1-3 years | | 3-5 years | | or more | Accounts payable and accrued charges | | $ | 940.5 | | $ | 940.5 | | $ | — | | $ | — | | $ | — | Long-term debt1 | | | 6,824.3 | | | 491.6 | | | 1,438.2 | | | 2,086.0 | | | 2,808.5 | Interest payments on long-term debt2 | | | 1,383.8 | | | 199.9 | | | 477.6 | | | 329.5 | | | 376.8 | Lease liabilities | | | 373.3 | | | 110.3 | | | 169.0 | | | 70.3 | | | 23.7 | Interest payments on lease liabilities | | | 39.6 | | | 15.6 | | | 16.8 | | | 4.9 | | | 2.3 | Derivative financial instruments3 | | | (48.3) | | | 20.1 | | | — | | | (80.7) | | | 12.3 | Total | | $ | 9,513.2 | | $ | 1,778.0 | | $ | 2,101.6 | | $ | 2,410.0 | | $ | 3,223.6 |
| 1 | The carrying value of long-term debt excludes financing costs. |
| 2 | Estimate of interest payable on long-term debt, based on interest rates, hedging of interest rates and hedging of foreign exchange rates as of December 31, 2025. |
| 3 | Estimated future receipts, net of future disbursements, on derivative financial instruments related to foreign exchange hedging on the principal of U.S.-dollar-denominated debt. |
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| Schedule of estimated sensitivity on other comprehensive income, before income tax |
The estimated sensitivity on other comprehensive income, before income taxes, of a variance of $0.10 in the year-end exchange rate of CAN dollars per one U.S. dollar used to calculate the fair value of financial instruments as of December 31, 2025 is as follows: | | | | | | Other | | | comprehensive | Increase (decrease) | | income | Increase of $0.10 | | $ | 13.6 | Decrease of $0.10 | | | (13.6) |
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| Schedule of capital structure |
| | | | | | | | | 2025 | | 2024 | Bank indebtedness | | $ | — | | $ | 3.0 | Long-term debt | | | 6,793.1 | | | 7,582.3 | Lease liabilities | | | 373.3 | | | 378.5 | Derivative financial instruments | | | (24.3) | | | (141.2) | Cash and cash equivalents | | | (128.0) | | | (39.9) | Promissory notes from the parent corporation | | | (996.0) | | | (996.0) | Net liabilities | | | 6,018.1 | | | 6,786.7 | Equity | | $ | 827.5 | | $ | 339.0 |
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| Foreign exchange forward contracts |
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| FINANCIAL INSTRUMENTS AND FINANCIAL RISK MANAGEMENT |
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| Schedule of derivative financial instruments |
| | | | | | | | | | | CAN dollar | | | | | | | | | average | | | | | | | | | exchange rate | | | | | | | | | per one U.S. | | Notional | | Notional | Maturity | | dollar | | amount sold | | amount bought | Less than 1 year | | 1.3773 | | $ | 138.4 | | US$ | 100.5 |
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| Interest rate swaps |
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| FINANCIAL INSTRUMENTS AND FINANCIAL RISK MANAGEMENT |
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| Schedule of derivative financial instruments |
| | | | | | | | | | Maturity | | Notional amount | | Pay/receive | | Fixed rate | | Floating rate | 2027 | | $ | 700.0 | | Pay fixed/ receive floating | | 3.213 | % | Daily Compounded CORRA |
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| Cross-currency swaps |
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| FINANCIAL INSTRUMENTS AND FINANCIAL RISK MANAGEMENT |
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| Schedule of derivative financial instruments |
| | | | | | | | | | Hedged item | | Hedging instrument | | | | | | | | | | CAN dollar | | | | | | | | Annual interest | | exchange rate on | | | | | | | | rate on notional | | interest and | | | Period | | Notional | | amount in | | capital payments | | | covered | | amount | | CAN dollars | | per one U.S. dollar | Term credit facility | | 1 month
period | | US$ | 859.7 | | Daily Compounded CORRA
+1.037% | | 1.3958 | 3.625% Senior Notes due 2029 | | 2021 to 2029 | | US$ | 500.0 | | 4.04 | % | 1.2109 | 5.700% Senior Notes due 2035 | | 2024 to 2035 | | US$ | 700.0 | | 5.10 | % | 1.3900 |
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