v3.26.1
EMPLOYEE BENEFITS OBLIGATIONS
 12 Months Ended
Mar. 31, 2026
Employee Benefits [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 a funded pension plan for employees in the United Kingdom that provides 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, 2026, the Company has issued letters of credit totalling $76.9 million (2025 – $63.9 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:
20262025
Funded defined benefit pension obligations$591.3 $599.2 
Fair value of plan assets635.8 585.9 
Funded defined benefit pension obligations (surplus) – net$(44.5)$13.3 
Unfunded defined benefit pension obligations106.1 109.2 
Employee benefits obligations - net$61.6 $122.5 
Employee benefit assets$(44.5)$(11.6)
Employee benefit obligations$106.1 $134.1 

Changes in funded defined benefit pension obligations and fair value of plan assets are as follows:
  2026  2025
CanadianForeignTotalCanadianForeignTotal
Pension obligations, beginning of year$593.8 $5.4 $599.2 $471.3 $5.0 $476.3 
Current service cost34.5 — 34.5 32.9 — 32.9 
Interest cost25.7 0.3 26.0 22.4 0.3 22.7 
Actuarial (gain) loss arising from:    
Experience adjustments0.6 — 0.6 43.3 0.1 43.4 
Economic assumptions(66.0)— (66.0)23.3 (0.1)23.2 
Employee contributions8.3 — 8.3 12.9 — 12.9 
Pension benefits paid(10.9)(0.4)(11.3)(12.3)(0.3)(12.6)
Foreign currency exchange differences— — — — 0.4 0.4 
Pension obligations, end of year$586.0 $5.3 $591.3 $593.8 $5.4 $599.2 
Fair value of plan assets, beginning of year$578.3 $7.6 $585.9 $535.0 $7.0 $542.0 
Interest income25.1 0.4 25.5 26.0 0.4 26.4 
Return on plan assets, excluding amounts    
included in interest income6.1 — 6.1 14.3 (0.1)14.2 
Employer contributions22.3 — 22.3 1.8 — 1.8 
Employee contributions8.3 — 8.3 12.9 — 12.9 
Pension benefits paid(10.9)(0.4)(11.3)(12.3)(0.3)(12.6)
Settlements— — — 1.4 — 1.4 
Administrative costs(0.9)— (0.9)(0.8)— (0.8)
Foreign currency exchange differences— (0.1)(0.1)— 0.6 0.6 
Fair value of plan assets, end of year$628.3 $7.5 $635.8 $578.3 $7.6 $585.9 
During the year ended March 31, 2025, an actuarial funding valuation report was completed by an independent actuary for a funded defined benefit pension plan in Canada. As the plan funding had reached the limit prescribed by the Canadian Income Tax Act, the Company was prohibited from making employer contributions to the plan from January 1, 2024 to December 31, 2024.
Changes in unfunded defined benefit pension obligations are as follows:
  2026  2025
 CanadianForeignTotalCanadianForeignTotal
Pension obligations, beginning of year$97.4 $11.8 $109.2 $86.2 $12.5 $98.7 
Current service cost3.1 0.4 3.5 4.1 0.7 4.8 
Interest cost4.0 0.3 4.3 4.0 0.4 4.4 
Past service cost— 0.8 0.8 3.6 (1.2)2.4 
Actuarial (gain) loss arising from:  
Experience adjustments(2.5)— (2.5)(0.2)(1.0)(1.2)
Economic assumptions(4.7)(0.6)(5.3)2.8 0.3 3.1 
Pension benefits paid(3.3)(0.8)(4.1)(3.1)(0.7)(3.8)
Foreign currency exchange differences— 0.2 0.2 — 0.8 0.8 
Pension obligations, end of year$94.0 $12.1 $106.1 $97.4 $11.8 $109.2 

Net pension cost is as follows:
  2026  2025
 CanadianForeignTotalCanadianForeignTotal
Funded plans      
Current service cost$34.5 $— $34.5 $32.9 $— $32.9 
Interest cost25.7 0.3 26.0 22.4 0.3 22.7 
Interest income(25.1)(0.4)(25.5)(26.0)(0.4)(26.4)
Settlement gain— — — (1.4)— (1.4)
Administrative cost0.9 — 0.9 0.8 — 0.8 
Net pension cost of funded plans$36.0 $(0.1)$35.9 $28.7 $(0.1)$28.6 
Unfunded plans     
Current service cost$3.1 $0.4 $3.5 $4.1 $0.7 $4.8 
Interest cost4.0 0.3 4.3 4.0 0.4 4.4 
Past service cost— 0.8 0.8 3.6 (1.2)2.4 
Net pension cost of unfunded plans$7.1 $1.5 $8.6 $11.7 $(0.1)$11.6 
Total net pension cost$43.1 $1.4 $44.5 $40.4 $(0.2)$40.2 

During the year ended March 31, 2026, pension costs of $23.0 million (2025 – $21.7 million) have been recorded in cost of sales, $4.8 million (2025 – $5.1 million) in research and development expenses, $9.6 million (2025 – $10.3 million) in selling, general and administrative expenses, nil (2025 – gain of $0.4 million) in restructuring, integration and acquisition costs, $4.8 million (2025 ‑ $0.7 million) in finance expense and $2.3 million (2025 – $2.8 million) were capitalized.

 
Fair value of the plan assets, by major categories, are as follows:
 (amounts in millions)
20262025
  QuotedUnquotedTotalQuotedUnquotedTotal
Canadian plans       
Equity funds
      
Canadian$— $52.6 $52.6 $— $43.5 $43.5 
Foreign— 186.9 186.9 — 157.8 157.8 
Bond funds
Government— 152.1 152.1 — 135.3 135.3 
Corporate— 62.8 62.8 — 63.4 63.4 
Private and property investments— 147.8 147.8 — 151.6 151.6 
Cash and cash equivalents
— 7.2 7.2 — 14.6 14.6 
Other
— 18.9 18.9 — 12.1 12.1 
Total Canadian plans $— $628.3 $628.3 $— $578.3 $578.3 
Foreign plans       
Equity instruments
$0.4 $— $0.4 $0.4 $— $0.4 
Debt instruments
Corporate6.8 — 6.8 6.9 — 6.9 
Other
— 0.3 0.3 — 0.3 0.3 
Total Foreign plans $7.2 $0.3 $7.5 $7.3 $0.3 $7.6 
Total plans $7.2 $628.6 $635.8 $7.3 $578.6 $585.9 

As at March 31, 2026 and March 31, 2025, there were no common shares of the Company in the pension plan assets.

Significant assumptions (weighted average) used are as follows:
 CanadianForeign
 2026202520262025
Pension obligations as at March 31:    
Discount rate5.19 %4.71 %4.57 %4.25 %
Compensation rate increases3.50 %3.67 %2.54 %2.48 %
Net pension cost for years ended March 31:
Discount rate4.71 %5.00 %4.25 %4.43 %
Compensation rate increases3.67 %3.69 %2.48 %2.68 %

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, 2026Life expectancy over 65 for a member
(in years)
 Male  Female
CountryMortality tableat age 45at age 65 at age 45at age 65
CanadaCPM private tables23.922.526.425.1
GermanyHeubeck RT2018G23.921.226.724.5
United KingdomS4PFA M CMI 2024 22.921.625.023.5
United StatesCPM private tables25.123.726.625.3

As at March 31, 2025Life expectancy over 65 for a member
(in years)
   Male Female
CountryMortality tableat age 45at age 65at age 45at age 65
CanadaCPM private tables 23.922.526.325.0
GermanyHeubeck RT2018G23.821.026.624.4
United KingdomS3PFA M CMI 202322.621.224.923.4
United StatesCPM private tables25.123.726.525.2

As at March 31, 2026, the weighted average duration of the defined benefit obligation is 18.2 years.
The impact on the defined benefit obligation as a result of a 0.25% change in the significant assumptions as at March 31, 2026 are as follows:
 Funded plans Unfunded plans 
Canadian ForeignCanadianForeignTotal
Discount rate:       
Increase$(25.6)
$
(0.1)
$
(2.6)
$
(0.3)
$
(28.6)
Decrease27.6 0.1 2.7 0.4 30.8 
Compensation rate:      
Increase10.9 — 0.4 — 11.3 
Decrease(10.4)— (0.4)— (10.8)

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

$24.2 $— $24.2 
Expected benefits paid in unfunded plans3.3 0.8 4.1 
EMPLOYEE COMPENSATION
Total employee compensation expense recognized in income is as follows:
 (amounts in millions)
20262025
Salaries and other short-term employee benefits $1,724.7 $1,697.0 
Share-based payments expense, net of equity swap (Note 25)
60.0 45.9 
Post-employment benefits – defined benefit plans (Note 21)
42.2 37.4 
Post-employment benefits – defined contribution plans42.6 39.8 
Termination benefits 13.7 35.0 
Total employee compensation$1,883.2 $1,855.1