Document and Entity Information
Document and Entity Information | 12 Months Ended |
Dec. 31, 2023 shares | |
Document Information [Line Items] | |
Document Type | 20-F |
Document Registration Statement | false |
Document Annual Report | true |
Current Fiscal Year End Date | --12-31 |
Document Period End Date | Dec. 31, 2023 |
Document Transition Report | false |
Entity Shell Company | false |
Entity File Number | 1-14832 |
Entity Registrant Name | CELESTICA INC. |
Entity Incorporation, State or Country Code | A6 |
Country of incorporation | Canada |
Entity Address, Address Line One | 5140 Yonge Street, Suite 1900 |
Entity Address, City or Town | Toronto |
Entity Address, State or Province | ON |
Entity Address, Country | CA |
Entity Address, Postal Zip Code | M2N 6L7 |
Contact Personnel Email Address | clsir@celestica.com |
Title of 12(b) Security | Subordinate Voting Shares |
Trading Symbol | CLS |
Security Exchange Name | NYSE |
Entity Well-known Seasoned Issuer | Yes |
Entity Voluntary Filers | No |
Entity Current Reporting Status | Yes |
Entity Interactive Data Current | Yes |
Entity Filer Category | Large Accelerated Filer |
Entity Emerging Growth Company | false |
ICFR Auditor Attestation Flag | true |
Entity Accounting Standard | International Financial Reporting Standards |
Entity Shell Company | false |
Amendment Flag | false |
Document Fiscal Year Focus | 2023 |
Document Fiscal Period Focus | FY |
Entity Central Index Key | 0001030894 |
Document Financial Statement Error Correction [Flag] | false |
Business Contact | |
Document Information [Line Items] | |
Entity Address, Address Line One | 5140 Yonge Street, Suite 1900 |
Entity Address, City or Town | Toronto |
Entity Address, State or Province | ON |
Entity Address, Country | CA |
Entity Address, Postal Zip Code | M2N 6L7 |
Contact Personnel Name | Craig Oberg |
City Area Code | 416 |
Local Phone Number | 448-2211 |
SVS | |
Document Information [Line Items] | |
Entity Common Stock, Shares Outstanding | 118,952,174 |
MVS | |
Document Information [Line Items] | |
Entity Common Stock, Shares Outstanding | 0 |
Preference Shares | |
Document Information [Line Items] | |
Entity Common Stock, Shares Outstanding | 0 |
Audit Information
Audit Information | 12 Months Ended |
Dec. 31, 2023 | |
Audit Information [Abstract] | |
Auditor Name | KPMG LLP |
Auditor Location | Toronto, Canada |
Auditor Firm ID | 85 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Current assets: | ||
Cash and cash equivalents | $ 370.4 | $ 374.5 |
Accounts receivable | 1,795.7 | 1,393.5 |
Inventories | 2,106.1 | 2,350.3 |
Income taxes receivable | 11.9 | 5.9 |
Other current assets | 228.5 | 202.8 |
Total current assets | 4,512.6 | 4,327 |
Property, plant and equipment | 472.7 | 371.5 |
Right-of-use assets | 154 | 138.8 |
Goodwill | 321.7 | 321.8 |
Intangible assets | 318.3 | 346.5 |
Deferred income taxes | 62.5 | 68.9 |
Other non-current assets | 48.9 | 53.5 |
Total assets | 5,890.7 | 5,628 |
Current liabilities: | ||
Current portion of borrowings under credit facility & lease obligations | 51.6 | 52.2 |
Accounts payable | 1,298.2 | 1,440.8 |
Accrued and other current liabilities | 1,781.3 | 1,462.2 |
Income taxes payable | 64.8 | 82.1 |
Current portion of provisions | 23.6 | 17.9 |
Total current liabilities | 3,219.5 | 3,055.2 |
Long-term portion of borrowings under credit facility & lease obligations | 731.2 | 733.9 |
Pension and non-pension post-employment benefit obligations | 88.1 | 77 |
Provisions and other non-current liabilities | 41.2 | 32.5 |
Deferred income taxes | 42.2 | 51.7 |
Total liabilities | 4,122.2 | 3,950.3 |
Equity: | ||
Capital stock | 1,672.5 | 1,714.9 |
Treasury stock | (80.1) | (18.5) |
Contributed surplus | 1,030.6 | 1,063.6 |
Deficit | (839.6) | (1,076.6) |
Accumulated other comprehensive loss | (14.9) | (5.7) |
Total equity | 1,768.5 | 1,677.7 |
Total liabilities and equity | $ 5,890.7 | $ 5,628 |
Consolidated Statement of Opera
Consolidated Statement of Operations - USD ($) shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Profit or loss [abstract] | |||
Revenue | $ 7,961 | $ 7,250 | $ 5,634.7 |
Cost of sales | 7,182.5 | 6,613.7 | 5,147.7 |
Gross profit | 778.5 | 636.3 | 487 |
Selling, general and administrative expenses (SG&A) | 279.6 | 279.9 | 245.1 |
Research and development | 60.9 | 46.3 | 38.4 |
Amortization of intangible assets | 39.6 | 40.1 | 25.5 |
Other charges, net of recoveries | 15.2 | 6.7 | 10.3 |
Earnings from operations | 383.2 | 263.3 | 167.7 |
Finance costs | 76.6 | 59.7 | 31.7 |
Earnings before income taxes | 306.6 | 203.6 | 136 |
Income tax expense (recovery) | |||
Current | 63.9 | 88.7 | 40.9 |
Deferred | (1.9) | (30.6) | (8.8) |
Income tax expense | 62 | 58.1 | 32.1 |
Net earnings | $ 244.6 | $ 145.5 | $ 103.9 |
Basic earnings per share (in dollars per share) | $ 2.04 | $ 1.18 | $ 0.82 |
Diluted earnings per share (in dollars per share) | $ 2.03 | $ 1.18 | $ 0.82 |
Shares used in computing per share amounts (in millions): | |||
Basic (in shares) | 120.1 | 123.5 | 126.7 |
Diluted (in shares) | 120.3 | 123.6 | 126.7 |
Consolidated Statement of Compr
Consolidated Statement of Comprehensive Income - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Disclosure of analysis of other comprehensive income by item [line items] | |||
Net earnings | $ 244.6 | $ 145.5 | $ 103.9 |
Items that will not be reclassified to net earnings: | |||
Gains (losses) on pension and non-pension post-employment benefit plans | (7.6) | 33.5 | 9.3 |
Items that may be reclassified to net earnings: | |||
Currency translation differences for foreign operations | (3.4) | (6.7) | (7.7) |
Total comprehensive income | 227.8 | 200.1 | 101.6 |
Currency forward | |||
Items that may be reclassified to net earnings: | |||
Changes from derivatives designated as hedges | (1.8) | 7.2 | (13.5) |
Interest rate swap | |||
Items that may be reclassified to net earnings: | |||
Changes from derivatives designated as hedges | $ (4) | $ 20.6 | $ 9.6 |
Consolidated Statement of Chang
Consolidated Statement of Changes in Equity - USD ($) $ in Millions | Total | Currency forward | Interest rate swap | Capital stock | Treasury stock | Contributed surplus | Deficit | AOC loss | [1] | AOC loss Currency forward | [1] | AOC loss Interest rate swap | [1] | |
Equity, beginning balance at Dec. 31, 2020 | $ 1,409 | $ 1,834.2 | $ (15.7) | $ 974.5 | $ (1,368.8) | $ (15.2) | ||||||||
Capital transactions: | ||||||||||||||
Issuance of capital stock | 0.2 | 0.3 | (0.1) | |||||||||||
Repurchase of capital stock for cancellation | [2] | (28.4) | (70) | 41.6 | ||||||||||
Purchase of treasury stock for stock-based plans (c) | [3] | (54.4) | (54.4) | |||||||||||
Equity-settled stock-based compensation (SBC) | 35 | 21.2 | 13.8 | |||||||||||
Total comprehensive income: | ||||||||||||||
Net earnings | 103.9 | 103.9 | ||||||||||||
Gains (losses) on pension and non-pension post-employment benefit plans | 9.3 | 9.3 | ||||||||||||
Currency translation differences for foreign operations | (7.7) | (7.7) | ||||||||||||
Changes from derivatives hedges | $ (13.5) | $ 9.6 | $ (13.5) | $ 9.6 | ||||||||||
Equity, ending balance at Dec. 31, 2021 | 1,463 | 1,764.5 | (48.9) | 1,029.8 | (1,255.6) | (26.8) | ||||||||
Capital transactions: | ||||||||||||||
Issuance of capital stock | 0.2 | 0.7 | (0.5) | |||||||||||
Repurchase of capital stock for cancellation | [4] | (27.1) | (50.3) | (1.8) | 25 | |||||||||
Purchase of treasury stock for stock-based plans (c) | [5] | (11.1) | (11.1) | |||||||||||
Equity-settled stock-based compensation (SBC) | 52.6 | 43.3 | 9.3 | |||||||||||
Total comprehensive income: | ||||||||||||||
Net earnings | 145.5 | 145.5 | ||||||||||||
Gains (losses) on pension and non-pension post-employment benefit plans | 33.5 | 33.5 | ||||||||||||
Currency translation differences for foreign operations | (6.7) | (6.7) | ||||||||||||
Changes from derivatives hedges | 7.2 | 20.6 | 7.2 | 20.6 | ||||||||||
Equity, ending balance at Dec. 31, 2022 | 1,677.7 | 1,714.9 | (18.5) | 1,063.6 | (1,076.6) | (5.7) | ||||||||
Capital transactions: | ||||||||||||||
Issuance of capital stock | [6] | 0.3 | 0.6 | (0.3) | ||||||||||
Repurchase of capital stock for cancellation | [7] | (38.3) | (43) | 1.8 | 2.9 | |||||||||
Purchase of treasury stock for stock-based plans (c) | [8] | (89.8) | (89.8) | |||||||||||
SBC cash settlement | (66.7) | (66.7) | ||||||||||||
Equity-settled stock-based compensation (SBC) | 57.5 | 26.4 | 31.1 | |||||||||||
Total comprehensive income: | ||||||||||||||
Net earnings | 244.6 | |||||||||||||
Gains (losses) on pension and non-pension post-employment benefit plans | (7.6) | (7.6) | ||||||||||||
Currency translation differences for foreign operations | (3.4) | (3.4) | ||||||||||||
Changes from derivatives hedges | $ (1.8) | $ (4) | $ (1.8) | $ (4) | ||||||||||
Equity, ending balance at Dec. 31, 2023 | $ 1,768.5 | $ 1,672.5 | $ (80.1) | $ 1,030.6 | $ (839.6) | $ (14.9) | ||||||||
[1] AOC loss (Accumulated other comprehensive loss) is net of tax. See note 13. accrued as of December 31, 2020 for the estimated Contractual Maximum Quantity under an ASPP executed in December 2020 for such purpose . See note 12. 2021 NCIB Accrual . See note 12. |
Consolidated Statement of Cha_2
Consolidated Statement of Changes in Equity (Parenthetical) - USD ($) $ in Millions | 12 Months Ended | ||||||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | ||||
Aggregate cost of SVS repurchased for cancellation | $ 35.6 | $ 34.6 | $ 35.9 | ||||
Aggregate cost of SVS repurchased for delivery under SBC plans | 89.8 | [1] | 11.1 | [2] | 54.4 | [3] | |
SVS | |||||||
Aggregate cost of SVS repurchased for cancellation | 35.6 | 34.6 | 35.9 | ||||
Accrual for repurchase of stock under automatic share purchase plan | 2.7 | ||||||
Aggregate cost of SVS repurchased for delivery under SBC plans | $ 82.3 | $ 44.9 | 20.6 | ||||
SVS issued during period as a result of conversion (in shares) | 18,600,000 | ||||||
SVS | 2021 SBC ASPP | |||||||
Accrual for repurchase of stock under automatic share purchase plan | 33.8 | ||||||
SVS | 2020 NCIB | |||||||
Accrual for repurchase of stock under automatic share purchase plan | $ 7.5 | $ 15 | |||||
[1]Consists of $82.3 paid to repurchase SVS for delivery obligations under our SBC plans in 2023 and $7.5 accrued at December 31, 2023 for the estimated Contractual Maximum Quantity under an ASPP executed in September 2023 for such purpose. See note 12.[2]Consists of $44.9 paid to repurchase SVS for delivery obligations under our SBC plans in 2022, offset in part by the reversal of the $33.8 2021 SBC Accrual. See note 12.[3]Consists of $20.6 paid to repurchase SVS for delivery obligations under our SBC plans in 2021, and $33.8 accrued as of December 31, 2021 for the estimated Contractual Maximum Quantity under an ASPP executed in December 2021 for such purpose (2021 SBC Accrual). See note 12. |
Consolidated Statement of Cash
Consolidated Statement of Cash Flows - USD ($) | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | ||
Operating activities: | ||||
Net earnings | $ 244,600,000 | $ 145,500,000 | $ 103,900,000 | |
Adjustments to net earnings for items not affecting cash: | ||||
Depreciation and amortization | 160,400,000 | 144,800,000 | 126,300,000 | |
Equity-settled employee SBC | 55,600,000 | 51,000,000 | 33,400,000 | |
Total return swap fair value adjustments | (45,600,000) | 0 | 0 | |
Other charges | 5,500,000 | 900,000 | 2,500,000 | |
Finance costs | 76,600,000 | 59,700,000 | 31,700,000 | |
Income tax expense | 62,000,000 | 58,100,000 | 32,100,000 | |
Other | (8,300,000) | (8,200,000) | 15,200,000 | |
Changes in non-cash working capital items: | ||||
Accounts receivable | (402,200,000) | (133,300,000) | (102,400,000) | |
Inventories | 244,200,000 | (717,300,000) | (521,900,000) | |
Other current assets | 8,800,000 | (51,600,000) | (11,500,000) | |
Accounts payable, accrued and other current liabilities and provisions | 106,500,000 | 813,400,000 | 556,900,000 | |
Non-cash working capital changes | (42,700,000) | (88,800,000) | (78,900,000) | |
Net income tax paid | (78,400,000) | (65,100,000) | (39,400,000) | |
Net cash provided by operating activities | 429,700,000 | 297,900,000 | 226,800,000 | |
Investing activities: | ||||
Acquisitions | 0 | 0 | (314,700,000) | |
Purchase of computer software and property, plant and equipment | (125,100,000) | (109,000,000) | (52,200,000) | |
Proceeds from sale of assets | 2,700,000 | 100,000 | 2,600,000 | |
Net cash used in investing activities | (122,400,000) | (108,900,000) | (364,300,000) | |
Financing activities: | ||||
Lease payments | (48,300,000) | (46,000,000) | (40,000,000) | |
Issuance of capital stock | 300,000 | 200,000 | 200,000 | |
Repurchase of capital stock for cancellation | (35,600,000) | (34,600,000) | (35,900,000) | |
Purchase of treasury stock for stock-based plans | (82,300,000) | (44,900,000) | (20,600,000) | |
Proceeds from partial TRS settlement | 5,000,000 | 0 | 0 | |
SBC cash settlement | (66,700,000) | 0 | 0 | |
Finance costs paid | [1] | (65,500,000) | (50,000,000) | (26,000,000) |
Net cash provided by (used in) financing activities | (311,400,000) | (208,500,000) | 67,700,000 | |
Net decrease in cash and cash equivalents | (4,100,000) | (19,500,000) | (69,800,000) | |
Cash and cash equivalents, beginning of year | 374,500,000 | 394,000,000 | 463,800,000 | |
Cash and cash equivalents, end of year | 370,400,000 | 374,500,000 | 394,000,000 | |
Revolving Loans | ||||
Financing activities: | ||||
Borrowings under credit facility | 0 | 0 | 220,000,000 | |
Amount repaid | 0 | 0 | (220,000,000) | |
Term Loans | ||||
Financing activities: | ||||
Borrowings under credit facility | 0 | 0 | 365,000,000 | |
Amount repaid | $ (18,300,000) | $ (33,200,000) | $ (175,000,000) | |
[1]Finance costs paid include debt issuance costs paid of $0.4 in 2023 (2022— $0.8; 2021 — $3.6). |
Consolidated Statement of Cas_2
Consolidated Statement of Cash Flows (Parenthetical) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Statement of cash flows [abstract] | |||
Debt issuance costs paid | $ 0.4 | $ 0.8 | $ 3.6 |
Reporting Entity
Reporting Entity | 12 Months Ended |
Dec. 31, 2023 | |
General Information About Financial Statements [Abstract] | |
Reporting Entity | REPORTING ENTITY: Celestica Inc. (referred to herein as Celestica, the Company, we, us, or our) is incorporated in Ontario with its corporate headquarters located in Toronto, Ontario, Canada. Our subordinate voting shares (SVS) are listed on the Toronto Stock Exchange (TSX) and the New York Stock Exchange (NYSE). Our operating and reportable segments consist of our Advanced Technology Solutions (ATS) segment and our Connectivity & Cloud Solutions (CCS) segment. See note 25 for further detail regarding segment information. |
Basis of Preparation and Materi
Basis of Preparation and Material Accounting Policies | 12 Months Ended |
Dec. 31, 2023 | |
Disclosure Of Significant Accounting Policies [Abstract] | |
Basis of Preparation and Material Accounting Policies | BASIS OF PREPARATION AND MATERIAL ACCOUNTING POLICIES: Statement of compliance: The consolidated financial statements have been prepared in accordance with International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board (IASB). The consolidated financial statements were authorized for issuance by our Board of Directors (Board) on March 8, 2024 . Functional and presentation currency: The consolidated financial statements are presented in United States (U.S.) dollars, which is also Celestica's functional currency. Unless otherwise noted, all financial information is presented in millions of U.S. dollars (except percentages and per share amounts). Use of estimates and judgments: The preparation of financial statements in conformity with IFRS requires management to make judgments, estimates and assumptions that affect the application of accounting policies, the reported amounts of assets, liabilities, revenue, and expenses, and related disclosures with respect to contingent assets and liabilities. We base our judgments, estimates and assumptions on current facts (including, in recent periods, the prolonged impact of global supply chain constraints), historical experience and various other factors that we believe are reasonable under the circumstances. The economic environment also impacts certain estimates and discount rates necessary to prepare our consolidated financial statements, including significant estimates and discount rates applicable to the determination of the recoverable amounts used in the impairment testing of our non-financial assets. Our assessment of these factors forms the basis for our judgments on the carrying values of our assets and liabilities, and the accrual of our costs and expenses. Actual results could differ materially from our estimates and assumptions. We review our estimates and underlying assumptions on an ongoing basis and make revisions as determined necessary by management. Revisions are recognized in the period in which the estimates are revised and may also impact future periods. Our review of the estimates, judgments and assumptions used in the preparation of our consolidated financial statements included those relating to, among others: our determination of the timing of revenue recognition, the determination of whether indicators of impairment existed for our assets and cash generating units (CGUs*), our measurement of deferred tax assets and liabilities, our estimated inventory write-downs and expected credit losses, customer creditworthiness and the determination of the fair value of assets acquired and liabilities assumed in connection with a business combination. Any revisions to estimates, judgments or assumptions may result in, among other things, write-downs, accelerated depreciation or amortization, or impairments of our assets or CGUs, and/or adjustments to the carrying amount of our accounts receivable (A/R) and/or inventories, or to the valuation of our deferred tax assets, any of which could have a material impact on our financial performance and financial condition. *CGUs are the smallest identifiable group of assets that cannot be tested individually and generate cash inflows that are largely independent of those of other assets or groups of assets, and can be comprised of a single site, a group of sites, or a line of business. Key sources of estimation uncertainty and judgment: We have applied significant estimates, judgments and assumptions in the following areas which we believe could have a significant impact on our reported results and financial position: our determination of the timing of revenue recognition; whether events or changes in circumstances are indicators that an impairment review of our assets or CGUs should be conducted; the measurement of our CGUs' recoverable amounts, which includes estimating future growth, profitability, and discount and terminal growth rates; and the allocation of the purchase price and other valuations related to our business acquisition. We describe our use of judgment and estimation uncertainties in greater detail in the accounting policies described under “Material Accounting Policies” below. Recently issued accounting standards and amendments: Interest R ate Benchmark Reform (Amendments to IFRS 9 (Financial Instruments) , IAS 39 (Financial Instruments: Recognition and Measurement), IFRS 4 (Insurance Contracts), IFRS 7 (Financial Instruments: Disclosures) and IFRS 16 (Leases)): In August 2020, the IASB issued Interest Rate Benchmark Reform-Phase 2 (Phase 2 IBOR Reform), which amends IFRS 9, IAS 39, IFRS 4, IFRS 7, and IFRS 16. Phase 2 IBOR Reform focuses on the effects on financial statements when a company replaces a previous interest rate benchmark with an alternative benchmark rate as a result of Interbank Offered Rates (IBOR) reform. We adopted Phase 2 IBOR Reform as of January 1, 2021. The adoption of Phase 2 IBOR Reform had no material impact on our consolidated financial statements. Also see note 20. Making Materiality Judgements (Amendments to IAS 1 and IFRS Practice Statement 2) In February 2021, the IASB issued amendments to IAS 1 and IFRS Practice Statement 2 “ Making Materiality Judgements, ” which provide guidance and examples to help entities apply materiality judgements to accounting policy disclosures. The amendments aim to help entities provide accounting policy disclosures that are more useful by replacing the requirement for entities to disclose their “significant” accounting policies with a requirement to disclose their material accounting policies and adding guidance on how entities are to apply the concept of materiality in making decisions about accounting policy disclosures. These amendments are applicable for annual periods beginning on or after January 1, 2023. These amendments, which we adopted as of such date, are reflected in, and had no material impact on our annual consolidated financial statements. Definition of accounting estimates (Amendments to IAS 8) In February 2021, the IASB issued Definition of accounting estimates (Amendments to IAS 8) to clarify the distinction between accounting policies and accounting estimates. The amendments are effective for reporting periods beginning on or after January 1, 2023. We adopted this standard as of January 1, 2023. The adoption of this standard had no material impact on our consolidated financial statements. Deferred tax related to assets and liabilities arising from a single transaction (Amendments to IAS 12 Income Taxes) In May 2021, the IASB issued Deferred tax related to assets and liabilities arising from a single transaction (Amendments to IAS 12 Income Taxes) to clarify the accounting treatment for deferred taxes on transactions such as leases and decommissioning obligations. The amendments are effective for reporting periods beginning on or after January 1, 2023. We adopted this standard as of January 1, 2023. The adoption of this standard had no material impact on our consolidated financial statements. IFRS 17 Insurance Contracts In May 2017, the IASB issued IFRS 17 Insurance Contracts . IFRS 17 replaces IFRS 4 and sets out principles for the recognition, measurement, presentation and disclosure of insurance contracts within the scope of IFRS 17. This standard is effective for reporting periods beginning on or after January 1, 2023. We adopted this standard as of January 1, 2023. The adoption of this standard had no material impact on our consolidated financial statements. International Tax Reform — Pillar Two Model Rules (Amendments to IAS 12) In May 2023, the IASB issued amendments to IAS 12 to give entities temporary mandatory relief from accounting for deferred taxes arising from the Organization for Economic Co-operation and Development’s international tax reform. The amendments became effective upon issuance, except for certain disclosure requirements which are effective for annual reporting periods beginning on or after January 1, 2023. We adopted the required amendments in May 2023, and have applied the mandatory temporary exception to recognizing and disclosing information related to Pillar Two income taxes. Pillar Two legislation has been enacted or substantively enacted in certain jurisdictions where we have operations, while legislation in other relevant jurisdictions has yet to be finalized. Based on currently enacted legislation, we anticipate that Pillar Two legislation will impact our reporting periods commencing January 1, 2025, however, enactment of Pillar Two legislation in other relevant jurisdictions may result in applicability for our reporting periods commencing January 1, 2024. We currently estimate that if such legislation becomes applicable for reporting periods commencing January 1, 2024, we would have incremental income taxes of approximately $6 in the first quarter of 2024. We will continue to monitor the impact of Pillar Two income taxes as the Pillar Two Model Rules become enacted in the jurisdictions where we have operations. Classification of liabilities as current or non-current (Amendments to IAS 1) In January 2020, the IASB issued Classification of liabilities as current or non-current (Amendments to IAS 1) to clarify how to classify debt and other liabilities as current or non-current. The amendments are effective for reporting periods beginning on or after January 1, 2024. We adopted this standard as of January 1, 2024. We do not anticipate that the adoption of this standard will have a material impact on our consolidated financial statements. MATERIAL ACCOUNTING POLICIES: The accounting policies below are in compliance with IFRS as issued by the IASB and have been applied consistently to all periods presented in these consolidated financial statements. (a) Basis of measurement: These consolidated financial statements have been prepared primarily on the historical cost basis. Other measurement bases, where used, are described in the applicable notes. (b) Basis of consolidation: These consolidated financial statements include our direct and indirect subsidiaries, all of which are wholly-owned. Any subsidiaries that are formed or acquired during the year are consolidated from their respective dates of formation or acquisition. Inter-company transactions and balances are eliminated on consolidation. (c) Business combinations: We use the acquisition method to account for any business combinations. All identifiable assets and liabilities are recorded at fair value on our consolidated balance sheet as of the acquisition date. Any goodwill that arises from business combinations is tested annually for impairment (see note 2 (j) ). Potential obligations for contingent consideration and other contingencies are also recorded at fair value on our consolidated balance sheet as of the acquisition date. We record subsequent changes in the fair value of such potential obligations from the date of acquisition to the settlement date in our consolidated statement of operations. We expense integration costs (for the establishment of business processes, infrastructure and information systems for acquired operations) and acquisition-related consulting and transaction costs as incurred in our consolidated statement of operations. We use judgment to determine the estimates used to value identifiable assets and liabilities, and the fair value of potential obligations, if applicable, at the acquisition date. We may engage third parties to determine the fair value of certain inventory, property, plant and equipment and intangible assets. We use estimates to determine cash flow projections, including the period of expected future benefit, and future growth and discount rates, among other factors, to value intangible assets and contingent consideration. The fair value of acquired tangible assets are measured by applying the market, cost or replacement cost, or income approach (using discounted cash flows and forecasts by management), as appropriate. The fair value of acquired intangible assets are measured by applying the income approach using a discounted cash flow model and forecasts based on management's estimates and assumptions. (d) Foreign currency translation: The majority of our subsidiaries have a U.S. dollar functional currency, which represents the currency of the primary economic environment in which they operate. For these subsidiaries, we translate: (i) monetary assets and liabilities denominated in foreign currencies into U.S. dollars at the period-end exchange rates; (ii) non-monetary assets and liabilities denominated in foreign currencies into U.S. dollars at historic rates; and (iii) revenue and expenses into U.S. dollars at the average exchange rates prevailing during the month of the transaction. Exchange gains and losses also arise on the settlement of foreign-currency denominated transactions. We recognize foreign currency differences arising on translation in our consolidated statement of operations. Upon consolidation, for our subsidiaries with a non-U.S. dollar functional currency, we translate assets and liabilities denominated in foreign currencies into U.S. dollars using the period-end exchange rates, and we translate revenue and expenses into U.S. dollars at the average exchange rates prevailing during the month of the transaction. We defer gains and losses arising from the translation of these operations in the foreign currency translation account included in accumulated other comprehensive income (loss) (OCI). For these subsidiaries, we translate foreign currency transactions into the relevant non-U.S. dollar functional currency using the exchange rate prevailing during the month of the transaction for revenues and expenses, and the exchange rate as at period end for the translation of these foreign currency denominated monetary assets and liabilities, and such gains and losses arising from these translations are recorded in the statement of operations in their non-U.S. dollar functional currency before translation into U.S. dollar for consolidation purposes. (e) Cash and cash equivalents: Cash and cash equivalents include cash on account and short-term investments with original maturities of three months or less. Cash and cash equivalents are classified as financial assets measured at fair value through profit or loss (see paragraph (o) below). These instruments are subject to an insignificant risk of change in fair value over their terms and, as a result, we carry cash and cash equivalents at cost. (f) Inventories: We procure inventory and manufacture products based on specific customer orders and forecasts, and value our inventory on a first-in, first-out basis at the lower of cost and net realizable value. The cost of our finished goods and work in progress includes direct materials, labor and overhead. We may require valuation adjustments if actual market conditions or demand for our products or services are less favorable than originally projected. The determination of net realizable value involves significant management judgment and estimation. When estimating the net realizable value of our inventory, we consider factors such as shrinkage, the aging of and future demand for the inventory, and contractual arrangements with customers. We attempt to utilize excess inventory in other products we manufacture or return such inventory to the relevant suppliers or customers. We use future sales volume forecasts to estimate excess inventory on-hand. A change to these assumptions may impact our inventory valuation and our gross margins. We adjust previous write-downs in our consolidated statement of operations in the period a change in estimate occurs. (g) Property, plant and equipment (PP&E): We carry PP&E at cost less accumulated depreciation and accumulated impairment losses. Cost consists of expenditures directly attributable to the acquisition or construction of the asset, and costs directly attributable to bringing the asset to the condition necessary for its intended use. We capitalize the cost of an asset when the economic benefits associated with that asset are probable and when the cost can be measured reliably. We capitalize the costs of major renovations and we write-off the carrying amount of replaced assets. We expense all other maintenance and repair costs in our consolidated statement of operations as incurred. We do not depreciate land. We recognize depreciation expense on a straight-line basis over the estimated useful life of the asset as follows: Buildings Up to 40 years Building/leasehold improvements Up to 40 years or if shorter, term of lease Machinery and equipment 3 to 15 years We estimate the useful life of PP&E based on the nature of the asset, historical experience, expected changes in technology, and the expected duration of related customer programs. When major components of an asset have a significantly different useful life than their primary asset, the components are accounted for and depreciated separately. We review our estimates of residual values, useful lives and the methods of depreciation annually at year-end and, if required, adjust them prospectively. We determine gains and losses on the disposal or retirement of PP&E by comparing the proceeds from disposal with the carrying amount of the asset and we recognize these gains and losses in our consolidated statement of operations in the period of disposal or retirement. Also, see note 2( j ). (h) Leases: We are the lessee of land, buildings, and machinery and equipment. At the inception of a contract, we assess whether an arrangement is, or contains, a lease in accordance with IFRS 16. Where we determine there is a lease under IFRS 16, we recognize a right-of-use (ROU) asset (representing our right to use such leased asset) and a related lease obligation on the applicable lease commencement date. An ROU asset is first measured based on the initial amount of the related lease obligation, subject to certain adjustments, if any, and then subsequently measured at such cost less accumulated depreciation and accumulated impairment losses (see note 2( j )). Depreciation expense on an ROU asset is recorded on a straight-line basis over the lease term in cost of sales or SG&A in our consolidated statement of operations, primarily based on the nature and use of the asset. The lease obligation is initially measured at the present value of the unpaid lease payments on the commencement date, discounted using the interest rate implicit in the lease (if readily determinable) or otherwise on our incremental borrowing rate (taking country-specific risks into consideration) on the lease commencement date. We generally use our incremental borrowing rate as the discount rate. The interest expense on the related lease obligation is recognized as finance costs in our consolidated statement of operations. The lease obligation is remeasured when there are adjustments to future lease payments arising from a change in applicable indices or rates, changes in the estimated amount expected to be payable under a residual value guarantee, or if we change our assessments of whether we will exercise an applicable purchase, extension or termination option. Upon any such remeasurement, a corresponding adjustment is made to the carrying amount of the related ROU asset, or is recorded in our consolidated statement of operations if the carrying amount of such ROU asset has been impaired. We expense the costs of low-value and short-term leases in our consolidated statement of operations on a straight-line basis over the lease term. (i) Goodwill and intangible assets: Goodwill: We initially record goodwill related to business acquisitions on our consolidated balance sheet in the amount of the excess of the fair value of the aggregate consideration paid or payable (including the estimated fair value of any contingent consideration) over the fair value of the identifiable net assets acquired. In subsequent reporting periods, we measure goodwill at cost less accumulated impairment losses, if any. We do not amortize goodwill. For purposes of impairment testing, we allocate goodwill to the CGU, or group of CGUs, that we expect will benefit from the related acquisition. See note 2 (j) . Intangible assets: We record acquired intangible assets on our consolidated balance sheet at fair value on the date of acquisition. We capitalize acquired intangible assets when the economic benefits associated with the asset are probable and when the cost can be measured reliably. We estimate the useful life of acquired intangible assets based on the nature of the asset, historical experience and the projected period of expected future economic benefits to be provided by the asset. In subsequent reporting periods, we measure such intangible assets at cost less accumulated amortization and accumulated impairment losses, if any. We amortize these assets on a straight-line basis over their estimated useful lives as follows: Intellectual property 3 to 5 years Other intangible assets 4 to 15 years Computer software assets 1 to 10 years Intellectual property assets consist primarily of certain acquired non-patented intellectual property and process technology. Other intangible assets consist primarily of customer relationships and contract intangibles. Computer software assets consist primarily of software licenses. We review our estimates of residual values, useful lives and the methods of amortization annually at year end and, if required, adjust for these prospectively. (j) Impairment of goodwill, intangible assets, PP&E, and ROU assets: We review the carrying amount of goodwill, intangible assets, PP&E, and ROU assets for impairment whenever events or changes in circumstances (triggering events) indicate that the carrying amount of such assets, or the related CGU or CGUs, may not be recoverable. If any such indication exists, we test the carrying amount of such assets or CGUs for impairment. In addition to an assessment of triggering events during the year, we conduct an annual impairment assessment of CGUs with goodwill in the fourth quarter of each year to correspond with our annual planning cycle (Annual Impairment Assessment). Judgment is required in the determination of: (i) our CGUs, which includes an assessment of whether the relevant asset, or group of assets, largely generates independent cash inflows, and an evaluation of how management monitors the business operations pertaining to such asset, or asset group; and (ii) whether events or changes in circumstances during the year are indicators that a review for impairment should be conducted. We recognize an impairment loss when the carrying amount of an asset, CGU or group of CGUs exceeds its recoverable amount. The recoverable amount of an asset, CGU or group of CGUs is measured as the greater of its expected value-in-use and its estimated fair value less costs of disposal. Determining the recoverable amount is subjective and requires management to exercise significant judgment in estimating future growth, profitability, discount and terminal growth rates, and in projecting future cash flows, among other factors. Determination of our expected value-in-use is based on a discounted cash flow analysis of the relevant asset, CGU or group of CGUs. Determining estimated fair value less costs of disposal requires valuations and use of appraisals. Future events and changing market conditions may impact our assumptions as to prices, costs or other factors that may result in changes to our estimates of future cash flows. Where applicable, we engage independent brokers to obtain market prices to estimate our real property and other asset values. We recognize impairment losses in our consolidated statement of operations. If it is determined that an impairment exists, we first allocate the impairment losses to the relevant CGU (or group of CGUs) to reduce the carrying amount of its (or their) goodwill, if any. If the goodwill is reduced to nil and the impairment losses have not been fully allocated, we then reduce the carrying amount of other assets in such CGU (or group of CGUs), generally on a pro-rata basis, until the impairment losses have been recognized in full. See notes 6, 7, and 8. We do not reverse impairment losses for goodwill in future periods. We reverse impairment losses for PP&E, ROU assets and intangible assets if the events or conditions that resulted in such losses in prior periods no longer exist or have decreased as a result of changes in circumstances. At each reporting date, we review for indicators that could change the estimates we used to determine the recoverable amount of the relevant assets. The amount of the reversal will be limited to the carrying amount that would have been determined, net of depreciation or amortization, had we recognized no impairment loss in prior periods. (k) Provisions: We recognize a provision for legal or constructive obligations arising from past events when the amount can be reliably estimated and it is probable that an outflow of resources will be required to settle an obligation. The nature and type of provisions vary and management judgment is required to determine the extent of an obligation and whether the outflow of resources is probable. At the end of each reporting period, we evaluate the appropriateness of the remaining balances. We may be required to adjust recorded amounts to reflect actual experience or changes in estimates for future periods. Restructuring: We incur restructuring charges relating to workforce reductions, site consolidations, and costs associated with businesses we are downsizing or exiting. Our restructuring charges include employee severance and benefit costs, consultant costs, gains, losses, accelerated depreciation or impairments related to owned sites and equipment we no longer use and which are available for sale, impairment of related intangible assets, and costs or impairments related to leased sites and equipment we no longer use. The recognition of restructuring charges requires management to make certain judgments and estimates regarding the nature, timing and amounts associated with our restructuring actions. Our assumptions include the timing of employee terminations, the measurement of termination costs, any anticipated sublease recoveries from exited sites, the timing of dispositions, and the estimated fair values less costs of disposal for assets we no longer use and which are available for sale. We develop detailed plans and record termination costs in the period that employees are informed of their termination. For owned sites and equipment that are no longer in use and are available for sale, we recognize an impairment loss based on their estimated fair value less costs of disposal, with estimated fair value based on market prices for similar assets. We may engage third parties to assist in the determination of the estimated fair values less costs of disposal for these assets. For leased sites that we intend to exit in connection with restructuring activities, we assess the recoverability of our ROU assets, and write down such assets (recorded as restructuring charges) if the carrying value exceeds any estimated sublease recoveries. To estimate future sublease recoveries, we may engage independent brokers to determine the estimated tenant rents we can expect to realize. At the end of each reporting period, we evaluate the appropriateness of our restructuring charges and balances. We may be required to adjust recorded amounts to reflect actual experience or changes in estimates for future periods. See note 15 (a) . Legal and other contingencies: In the normal course of our operations, we may be subject to lawsuits, investigations and other claims, including, but not limited to, environmental, labor, product, customer disputes, and other matters. The filing of a suit or formal assertion of a claim does not automatically trigger a requirement to record a provision. We record a provision for loss contingencies, including legal claims, based on management’s estimate of the probable outcome. Judgment is required when there is a range of possible outcomes. Management considers the degree of probability of the outcome and the ability to make a reasonable estimate of the loss. We may also use third party advisors in making our determination. The ultimate outcome, including the amount and timing of any payments required, may vary significantly from our original estimates. Potential material legal and other material contingent obligations that have not been recognized as provisions, as the outcome is remote or not probable, or the amount cannot be reliably estimated, are disclosed as contingent liabilities. See note 24. Warranty: We offer product and service warranties to our customers. We record a provision for future warranty costs based on management’s estimate of probable claims under these warranties. In determining the amount of the provision, we consider several factors including the terms of the warranty (which vary by customer, product or service), the current volume of products sold or services rendered during the warranty period, and historical warranty information. We review and adjust these estimates as necessary to reflect our experience and new information. The amount and aging of our provision will vary depending on various factors including the length of the warranty offered, the remaining life of the warranty and the extent and timing of warranty claims. We classify the portion of our warranty provision for which payment is expected in the next 12 months as current, and the remainder as non-current. (l) Employee benefits: Pension and non-pension post-employment benefits: We classify pension and non-pension post-employment benefits as either defined contribution plans or defined benefit plans. Under defined contribution plans, our obligation is to make a fixed contribution to a separate entity. The related investment risk is borne by the employee. We recognize our obligations to make contributions to defined contribution plans as an employee benefit expense in our consolidated statement of operations in the period the employee services are rendered. Under defined benefit plans, our obligation is to provide an agreed-upon benefit to specified plan participants. We remain exposed to both actuarial and investment risks with respect to defined benefit plans. Our obligation is actuarially determined using the projected unit credit method, based on service and management’s estimates. Actuarial valuations require management to make judgments and estimates relating to salary escalation, compensation levels at the time of retirement, retirement ages, the discount rate used in measuring the net interest on the net defined benefit asset or liability, and expected healthcare costs (as applicable). These actuarial assumptions could change from period-to-period and actual results could differ materially from the estimates originally made by management. We evaluate our assumptions on a regular basis, taking into consideration current market conditions and historical data. Market-driven changes may affect the actual rate of return on plan assets compared to our assumptions, as well as our discount rates and other variables which could cause actual results to differ materially from our estimates. Changes in assumptions could impact our defined benefit pension plan valuations and our future defined benefit pension expense and required funding. Our obligation for each defined benefit plan consists of the present value of the defined benefit obligation less the fair value of plan assets, and is presented on a net basis on our consolidated balance sheet. When the actuarial calculation results in a benefit, the asset we recognize is restricted to the present value of economic benefits available in the form of future refunds from the plan or reductions in future contributions to the plan. To calculate the present value of economic benefits, we also consider any minimum funding requirements that apply to the plan. An economic benefit is available if it is realizable during the life of the plan, or on settlement of the plan liabilities. We recognize past service costs or credits arising from plan amendments, whether vested or unvested, immediately in our consolidated statement of operations. We determine the net interest expense (income) on the net defined benefit liability (asset) for each year by applying the discount rate used to measure the defined benefit obligation at the beginning of the year to the net defined benefit liability (asset) position, taking into account any changes in the net defined benefit |
Acquisitions
Acquisitions | 12 Months Ended |
Dec. 31, 2023 | |
Disclosure of detailed information about business combination [abstract] | |
Acquisitions | ACQUISITIONS: In November 2021, we completed the acquisition of 100% of the shares of PCI Private Limited (PCI), a fully integrated design, engineering and manufacturing solutions provider with five manufacturing and design facilities across Asia. The purchase price for PCI was $314.7, net of $11.4 of cash acquired. The purchase price was funded with a combination of cash and borrowings under our credit facility (see note 11). In the first quarter of 2022 (Q1 2022), we finalized the purchase price allocation for the acquisition. In connection therewith, we made the following changes to our preliminary purchase price allocation: increased the carrying value of customer intangible assets by $2.7, increased deferred income taxes liability by $0.5, and decreased goodwill by $2.2. Goodwill from the acquisition arose primarily from specific knowledge and capabilities of the acquired workforce and expected synergies from the combination of our operations. Such goodwill is attributable to our ATS segment and is not tax deductible. Details of our final purchase price allocation for the PCI acquisition are as follows: Accounts receivable and other current assets $ 68.9 Inventories 83.6 PP&E 22.8 Customer intangible assets 176.1 Other non-current assets 6.9 Goodwill 123.8 Accounts payable and accrued liabilities (121.3) Other current liabilities (8.1) Deferred income taxes and other long-term liabilities (38.0) $ 314.7 We engaged third-party consultants to provide valuations of certain inventory, PP&E and intangible assets in connection with our acquisition of PCI. The fair value of the acquired tangible assets was measured by applying the market (sales comparison, brokers' quotes), cost or replacement cost, or income (discounted cash flow) approach, as deemed appropriate. The valuation of the intangible assets by the third-party consultants was primarily based on the income approach using a discounted cash flow model and forecasts based on management's subjective estimates and assumptions. Various Level 2 and 3 data inputs of the fair value measurement hierarchy (defined in note 20) were used in the valuation of the foregoing assets. Annual amortization of intangible assets increased by approximately $18 as a result of the PCI acquisition. We recorded Acquisition Costs of $1.0 (defined in note 15) in 2023, all related to potential acquisitions, and $0.4 in 2022, all related to our PCI acquisition. We recorded A cquisition Costs of $7.3 during 2021, including $4.8 related to our PCI acquisition, offset in part by a $1.2 Acquisition Recovery (defined in note 15), consisting of the release of certain indirect tax liabilities previously recorded in connection with our acquisition of Impakt Holdings, LLC (Impakt) in November 2018. See note 15 (d) . |
Accounts Receivable
Accounts Receivable | 12 Months Ended |
Dec. 31, 2023 | |
Trade and other non-current receivables [abstract] | |
Accounts Receivable | ACCOUNTS RECEIVABLE: A/R sales program and supplier financing programs (SFPs): We are party to an A/R sales program agreement with a third-party bank to sell up to $450.0 (increased in March 2023 from the prior limit of $405.0) in A/R on an uncommitted, revolving basis, subject to pre-determined limits by customer. This agreement provides for automatic annual one-year extensions. This agreement may be terminated at any time by the bank or by us upon 3 months’ prior notice, or by the bank upon specified defaults. We are required to comply with covenants, including those relating to the fulfillment of payment obligations and restrictions on the sale, assignment or creation of liens, with respect to A/R sold under this agreement. At December 31, 2023 and December 31, 2022, we were in compliance with these covenants. Under our A/R sales program, we continue to collect cash from our customers and remit amounts collected to the bank weekly. As of December 31, 2023, we participate in three customer SFPs, one with a CCS segment customer and two with ATS segment customers. Pursuant to the SFPs, we sell A/R from the relevant customer to third-party banks on an uncommitted basis. The SFPs have indefinite terms and may be terminated at any time by the customer or by us upon specified prior notice. We utilize the SFPs to substantially offset the effect of extended payment terms required by these customers on our working capital for the period. Under our SFPs, the third-party banks collect the relevant receivables directly from the customers. At December 31, 2023, we sold nil A/R (December 31, 2022 — $245.6) under our A/R sales program and $18.6 of A/R (December 31, 2022 — $105.6) under our SFPs. The A/R sold under each of these programs are de-recognized from our A/R balance, and the proceeds are reflected as cash provided by operating activities in our consolidated statement of cash flows. Upon sale, we assign the rights to the A/R to the banks. A/R are sold net of discount charges, which are recorded as finance costs in our consolidated statement of operations. Contract assets: At December 31, 2023, our A/R balance included $250.8 (December 31, 2022 — $292.9) of contract assets recognized as revenue in accordance with our revenue recognition accounting policy. |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2023 | |
Classes of current inventories [abstract] | |
Inventories | INVENTORIES: Inventories are comprised of the following: December 31 2022 2023 Raw materials $ 2,130.6 $ 1,885.5 Work in progress 84.1 93.6 Finished goods 135.6 127.0 $ 2,350.3 $ 2,106.1 We record inventory provisions, net of valuation recoveries, in cost of sales. Inventory provisions reflect write-downs in the value of our inventory to net realizable value, and valuation recoveries primarily reflect realized gains on the disposition of previously written-down inventory. During 2023, we recorded net inventory write-downs of $57.6 (split approximately evenly between our two segments). During 2022, we recorded net inventory write-downs of $30.5, approximately two-thirds of which related to our ATS segment. During 2021, we recorded net inventory write-downs of $4.9, consisting of $7.2 in inventory write-downs pertaining to our ATS segment, offset in part by $2.3 of valuation recoveries in our CCS segment. The accounting treatment of inventories destroyed in a fire event in June 2022 is described in notes 15 and 26. We regularly review the estimates and assumptions we use to value our inventory through analysis of historical performance, current conditions and future expectations. We receive cash deposits from certain of our customers primarily to help mitigate the impact of high inventory levels carried due to the current constrained materials environment, and to reduce risks related to excess and/or obsolete inventory. Such deposits as of December 31, 2023 totaled $904.8 (December 31, 2022 — $825.6), and were recorded in accrued and other current liabilities on our consolidated balance sheet. |
Property, Plant and Equipment
Property, Plant and Equipment | 12 Months Ended |
Dec. 31, 2023 | |
Property, plant and equipment [abstract] | |
Property, Plant and Equipment | PROPERTY, PLANT AND EQUIPMENT: PP&E are comprised of the following: 2022 Cost Accumulated Net Book Land $ 34.2 $ 12.0 $ 22.2 Buildings including improvements 374.6 235.5 139.1 Machinery and equipment 808.2 598.0 210.2 $ 1,217.0 $ 845.5 $ 371.5 2023 Cost Accumulated Net Book Land $ 33.7 $ 12.0 $ 21.7 Buildings including improvements 402.2 250.8 151.4 Machinery and equipment 939.6 640.0 299.6 $ 1,375.5 $ 902.8 $ 472.7 The following table details the changes to the net book value of PP&E for the years indicated: Land Buildings Machinery Total Balance — January 1, 2022 $ 23.2 $ 155.5 $ 160.0 $ 338.7 Additions — 16.5 99.7 116.2 Depreciation — (22.1) (47.1) (69.2) Accelerated depreciation of assets and other disposals (i)(ii) — (10.1) (2.0) (12.1) Foreign exchange and other (1.0) (0.7) (0.4) (2.1) Balance — December 31, 2022 (iii) 22.2 139.1 210.2 371.5 Additions — 39.2 151.0 190.2 Depreciation — (23.6) (60.2) (83.8) Accelerated depreciation of assets and other disposals (i) — (2.8) (2.5) (5.3) Foreign exchange and other (0.5) (0.5) 1.1 0.1 Balance — December 31, 2023 (iii) $ 21.7 $ 151.4 $ 299.6 $ 472.7 (i) Includes accelerated depreciation of equipment related to disengaged programs in 2022 and 2023 (recorded in each case as restructuring charges), as described in note 15 (a ). (ii) Includes the disposal of a building located in Asia ($8.1, attributable to our CCS segment). (iii) Total PP&E amount includes $35.0 of construction in progress at December 31, 2023 (December 31, 2022 — $19.7). We review the carrying amount of PP&E for impairment whenever events or changes in circumstances (triggering events) indicate that the carrying amount of such assets (or the related CGU or CGUs) may not be recoverable. If any such indication exists, we test the carrying amount of such assets or CGUs for impairment. We did not identify any triggering event during the course of 2021 through 2023 indicating that the carrying amount of such assets or related CGUs may not be recoverable. However, we recorded non-cash restructuring charges in such years to accelerate depreciation of certain assets related to disengaged programs, in connection with our restructuring activities, as described in footnote (i) above and note 15( a |
Right-Of-Use Assets
Right-Of-Use Assets | 12 Months Ended |
Dec. 31, 2023 | |
Disclosure of quantitative information about right-of-use assets [abstract] | |
Right-Of-Use Assets | RIGHT-OF-USE ASSETS: The following table details the changes to the net book value of ROU assets during the periods shown: Land Buildings Other Total Balance — January 1, 2022 $ 10.7 $ 101.0 $ 2.1 $ 113.8 New leases and lease renewals — 63.0 0.4 63.4 Depreciation (0.6) (34.3) (0.5) (35.4) Accelerated depreciation of assets and lease terminations (i) — (0.7) — (0.7) Foreign exchange and other — (2.2) (0.1) (2.3) Balance — December 31, 2022 10.1 126.8 1.9 138.8 New leases and lease renewals 0.4 52.9 0.4 53.7 Depreciation (0.6) (35.9) (0.5) (37.0) Accelerated depreciation of assets and lease terminations (i) — (1.1) — (1.1) Foreign exchange and other — (0.4) — (0.4) Balance — December 31, 2023 $ 9.9 $ 142.3 $ 1.8 $ 154.0 (i) Represents the accelerated depreciation (in each case as restructuring charges) of certain ROU assets in connection with restructuring actions. See note 15 (a ). We review the carrying amount of ROU assets for impairment whenever events or changes in circumstances (triggering events) indicate that the carrying amount of such assets (or the related CGU or CGUs) may not be recoverable. If any such indication exists, we test the carrying amount of such assets or CGUs for impairment. We did not identify any triggering event during the course of 2021, 2022 or 2023 indicating that the carrying amount of our ROU assets or related CGUs may not be recoverable. However, we recorded non-cash restructuring charges in 2022 and 2023 to accelerate the depreciation of certain ROU assets related to vacated properties, in connection with our restructuring activities, as described in footnote (i) above and note 15( a |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 12 Months Ended |
Dec. 31, 2023 | |
Intangible assets and goodwill [abstract] | |
Goodwill and Intangible Assets | GOODWILL AND INTANGIBLE ASSETS: Goodwill and intangible assets are comprised of the following: 2022 Cost Accumulated Net Book Goodwill $ 377.2 $ 55.4 $ 321.8 Intellectual property $ 111.3 $ 111.3 $ — Other intangible assets 679.3 342.1 337.2 Computer software assets 300.7 291.4 9.3 $ 1,091.3 $ 744.8 $ 346.5 2023 Cost Accumulated Net Book Goodwill $ 377.1 $ 55.4 $ 321.7 Intellectual property $ 111.3 $ 111.3 $ — Other intangible assets 672.3 371.9 300.4 Computer software assets 310.8 292.9 17.9 $ 1,094.4 $ 776.1 $ 318.3 The following table details the changes to the net book value of goodwill and intangible assets for the years indicated: Note Goodwill Other Computer Total Balance — January 1, 2022 $ 324.2 $ 371.5 $ 10.5 $ 706.2 Additions — — 1.9 1.9 Adjustment to acquisitions through business combination (i) 3 (2.2) 2.7 — 0.5 Amortization — (37.0) (3.1) (40.1) Foreign exchange and other (0.2) — — (0.2) Balance — December 31, 2022 321.8 337.2 9.3 668.3 Additions — — 11.4 11.4 Amortization — (36.8) (2.8) (39.6) Foreign exchange and other (0.1) — — (0.1) Balance — December 31, 2023 $ 321.7 $ 300.4 $ 17.9 $ 640.0 (i) In Q1 2022, we finalized the PCI purchase price allocation. In connection therewith, we adjusted our preliminary purchase price allocation by, among other things, increasing the carrying value of customer intangible assets by $2.7, and decreasing goodwill by $2.2. See note 3. We review the carrying amounts of goodwill and intangible assets for impairment whenever events or changes in circumstances (triggering events) indicate that the carrying amount of such assets (or the related CGU or CGUs) may not be recoverable. If any such indication exists, we test the carrying amount of such assets or CGUs for impairment. No triggering events occurred during 2021, 2022 or 2023. However, see note 15 (a) below for a description of the accelerated depreciation of specified equipment, and ROU and other assets during such three-year period in connection with our restructuring activities. In addition to an assessment of triggering events during the year, we conduct an Annual Impairment Assessment of CGUs with goodwill in the fourth quarter of each year. We recorded no impairment charges against goodwill or intangible assets as a result of our 2021, 2022 or 2023 Annual Impairment Assessments. For our Annual Impairment Assessments, we use cash flow projections based primarily on our plan for the following year, our three-year strategic plan, and other financial projections. Our plans, which are primarily based on financial projections submitted by our subsidiaries along with input from our customer teams, are reviewed by various levels of management as part of our annual planning cycle. Our three-year strategic plan and other financial projections were presented to our Board in July 2023. Our plan for 2024 was approved by management and presented to our Board in December 2023. Determining the recoverable amount of a CGU is subjective and requires management to exercise significant judgment in estimating, among other things, future revenue, profitability, and discount and terminal growth rates. The assumptions used in our 2023 Annual Impairment Assessment were determined based on past experiences adjusted for expected changes in future conditions. Where applicable, we also engaged independent brokers to obtain market prices to estimate our real property and other asset values. For our 2023 Annual Impairment Assessment, we used cash flow projections over a 5-year period, and applied a perpetual growth rate of 2% thereafter (consistent with long-term inflation guidance) . Our goodwill balance at December 31, 2023 was $321.7 (December 31, 2022 — $321.8; December 31, 2021 — $324.2). At December 31, 2023, our Capital Equipment CGU goodwill balance consisted of $112.1 of goodwill attributable to our November 2018 acquisition of Impakt and $19.5 attributable to prior acquisitions; our A&D CGU goodwill balance consisted of goodwill of $3.7 attributable to our November 2016 acquisition of Lorenz, Inc. and Suntek Manufacturing Technologies, SA de CV (Karel Manufacturing), and $62.6 attributable to our April 2018 acquisition of Atrenne Integrated Solutions, Inc. (commencing in 2022, our Atrenne CGU was merged into our A&D CGU); and our PCI CGU goodwill balance consisted of goodwill of $123.8 attributable to our November 2021 acquisition of PCI. During 2022, we merged our Atrenne CGU into our A&D CGU due to a change in the pattern of cash inflows resulting from the following factors: (i) a reallocation of manufacturing equipment and implementation of program transfers among these businesses to better address customer requirements; (ii) the integration of certain business processes; and (iii) the consolidation of their management reporting structures. Given the common customers and site usage of these businesses, we centralized relevant resource allocation between them into a combined A&D CGU, such that core manufacturing assets are shared to generate revenues on an integrated basis and fulfill orders for common customers. As a result, the individual manufacturing sites no longer generate independent cash inflows. We used the following assumptions for purposes of our Annual Impairment Assessments of goodwill for the periods shown: Assumption Capital Equipment CGU A&D CGU (iii) Atrenne CGU (iii) PCI CGU Annual revenue growth rate 2023 — 12% over 5 year period; 2022 — 9% over 5 year period; 2021 — 10% over 5 year period 2023 — 9% over 5 year period; 2022 — 12% over 5 year period; 2021 — 11% over 5 year period 2023 — N/A (iii) ; 2022 — N/A (iii) ; 2021 — 19% over 5 year period 2023 — 11% over 5 year period; 2022 — 11% over 5 year period; 2021 — 9% over 5 year period Average annual CGU margins over the 5-year period 2023 — above total company margin (i) ; 2022 — above total company margin (i) ; 2021 — above total company margin (i) 2023 — similar to total company margin (i) ; 2022 — slightly above total company margin (i) ; 2021 — slightly above total company margin (i) 2023 — N/A (iii) ; 2022 — N/A (iii) ; 2021 — above total company margin (i) 2023 — above total company margin (i) ; 2022 — above total company margin (i) ; 2021 — above total company margin (i) Discount rate (ii) 2023 — 14%; 2022 — 14%; 2021 — 11% 2023 — 12%; 2022 — 12%; 2021 — 11% 2023 — N/A (iii) ; 2022 — N/A (iii) ; 2021 — 10% 2023 — 15%; 2022 — 15%; 2021 — 15% (i) Total company margin is defined as total segment income as a percentage of total revenue. See note 25. (ii) For 2023, the pre-tax discount rate by CGU is as follows: Capital Equipment CGU 18%; A&D CGU 15%; and PCI CGU 17%. (iii) Commencing in 2022, our Atrenne CGU merged into our A&D CGU, and is no longer a separate CGU. As a result, our 2022 and 2023 Annual Impairment Assessments for our A&D CGU include our Atrenne business. Future growth in revenue and margins for these CGUs is supported by new business awarded recently, customer forecasts, assumptions for additional future program wins based on our current revenue pipeline, margin improvements based on restructuring actions implemented and external industry outlooks. Assumptions for our 2023 Annual Impairment Assessment for: (i) our Capital Equipment CGU include expected stabilization of market demand in the near term with strong business growth over the long term; (ii) our A&D CGU include expected demand increases in line with industry expectations; and (iii) our PCI CGU include expected benefits from our continued execution of various synergistic programs. Future events and changing market conditions may impact our assumptions as to prices, costs or other factors that may result in changes to our estimates of future cash flows. Failure to realize the assumed revenues at an appropriate profit margin of a CGU could result in impairment losses in such CGU in future periods . |
Other Non-Current Assets
Other Non-Current Assets | 12 Months Ended |
Dec. 31, 2023 | |
Subclassifications of assets, liabilities and equities [abstract] | |
Other Non-Current Assets | OTHER NON-CURRENT ASSETS: December 31 Note 2022 2023 Net pension assets 18 $ 7.1 $ 5.3 Land rights 7.3 6.9 Deferred investment costs 1.7 9.3 Deferred financing costs 1.5 1.1 Interest rate swap derivative 20 18.7 11.0 Other 17.2 15.3 $ 53.5 $ 48.9 |
Provisions
Provisions | 12 Months Ended |
Dec. 31, 2023 | |
Disclosure of other provisions [abstract] | |
Provisions | PROVISIONS: Our provisions include restructuring, warranty, legal and other provisions (described in note 2 (k) ). We include details of our restructuring provision in note 15 (a) . The following chart details the changes in our provisions for the year indicated: Restructuring Warranty Legal (i) Other (ii) Total Balance — December 31, 2022 $ 5.8 $ 31.8 $ 0.8 $ 8.6 $ 47.0 Provisions 9.6 19.6 3.2 1.7 34.1 Reversal of prior year provisions (iii) — (4.9) — — (4.9) Payments/usage (11.8) (3.0) — (0.3) (15.1) Accretion, foreign exchange and other — 0.1 — 0.2 0.3 Balance — December 31, 2023 $ 3.6 $ 43.6 $ 4.0 $ 10.2 $ 61.4 Current $ 3.6 $ 16.0 $ 4.0 $ — $ 23.6 Non-current (iv) — 27.6 — 10.2 37.8 December 31, 2023 $ 3.6 $ 43.6 $ 4.0 $ 10.2 $ 61.4 (i) Legal represents our aggregate provisions recorded for various legal actions based on our estimates of the likely outcomes. (ii) Other represents our asset retirement obligations relating to properties that we currently lease. (iii) During 2023, we reversed prior year warranty provisions primarily as a result of expired warranties and changes in estimated costs based on historical experience. (iv) Non-current balances are included in provisions and other non-current liabilities on our consolidated balance sheet. At the end of each reporting period, we evaluate the appropriateness of our provisions, and make adjustments as required to reflect actual experience or changes in our estimates. |
Credit Facilities and Lease Obl
Credit Facilities and Lease Obligations | 12 Months Ended |
Dec. 31, 2023 | |
Borrowings [abstract] | |
Credit Facilities and Lease Obligations | CREDIT FACILITIES AND LEASE OBLIGATIONS: We are party to a credit agreement (Credit Facility) with Bank of America, N.A., as Administrative Agent, and the other lenders party thereto, which as of a December 2021 amendment thereto, includes a term loan in the original principal amount of $350.0 (Initial Term Loan), a term loan in the original principal amount of $365.0 (Incremental Term Loan), and a $600.0 revolving credit facility (Revolver). Prior to such amendment, the Credit Facility included the Initial Term Loan, a term loan in the original principal amount of $250.0 (Terminated Term Loan), the outstanding borrowings under which were fully repaid in December 2021 with a portion of the proceeds of the Incremental Term Loan, and commitments of $450.0 under the Revolver. The Initial Term Loan and the Incremental Term Loan are collectively referred to as the Term Loans. In June 2023 (effective for all new interest periods for existing borrowings and all new subsequent borrowings), we amended our Credit Facility (June 2023 Amendments) to replace LIBOR with the term Secured Overnight Financing Rate (SOFR) plus 0.1% (Adjusted Term SOFR). The June 2023 Amendments did not have a significant impact on our 2023 annual consolidated financial statements. The Initial Term Loan matures in June 2025. The Incremental Term Loan and the Revolver each mature in March 2025, unless either (i) the Initial Term Loan has been prepaid or refinanced or (ii) commitments under the Revolver are available and have been reserved to repay the Initial Term Loan in full, in which case such obligations mature in December 2026. The Incremental Term Loan requires quarterly principal repayments of $4.5625, and each of the Term Loans requires a lump sum repayment of the remainder outstanding at maturity. The Initial Term Loan required quarterly principal repayments of $0.875, all of which were paid in prior years. We are also required to make annual prepayments of outstanding obligations under the Credit Facility (applied first to the Term Loans, then to the Revolver, in the manner set forth in the Credit Facility) ranging from 0% — 50% (based on a defined leverage ratio) of specified excess cash flow for the prior fiscal year. No prepayments based on excess cash flow were required in 2021, 2022 or 2023, or will be required in 2024. In addition, prepayments of outstanding obligations under the Credit Facility (applied as described above) may also be required in the amount of specified net cash proceeds received above a specified annual threshold (including proceeds from the disposal of certain assets). No Credit Facility prepayments based on net cash proceeds were required in 2021, 2022 or 2023, or will be required in 2024. Any outstanding amounts under the Revolver are due at maturity. Except under specified circumstances, and subject to the payment of breakage costs (if any), we are generally permitted to make voluntary prepayments of outstanding amounts under the Revolver and the Term Loans without any other premium or penalty. Repaid amounts on the Term Loans may not be re-borrowed. At December 31, 2023, the aggregate remaining mandatory principal repayments under the Credit Facility are as follows (assuming no further mandatory principal repayments are required based on excess cash flow or net cash proceeds): Total 2024 2025 2026 Initial Term Loan $ 280.4 $ — $ 280.4 $ — Incremental Term Loan (i) $ 328.5 $ 18.25 $ 18.25 $ 292.0 (i) This assumes that the conditions required for a December 2026 maturity date are satisfied. If such conditions are not satisfied, the Incremental Term Loan matures (and all amounts outstanding thereunder are payable) in March 2025. The Credit Facility has an accordion feature that allows us to increase the Term Loans and/or commitments under the Revolver by $150.0, plus an unlimited amount to the extent that a specified leverage ratio on a pro forma basis does not exceed specified limits, in each case on an uncommitted basis and subject to the satisfaction of certain terms and conditions. The Revolver also includes a $50.0 sub-limit for swing line loans, providing for short-term borrowings up to a maximum of ten Borrowings under the Revolver bear interest, depending on the currency of the borrowing and our election for such currency, at: (i) LIBOR for interest periods beginning prior to the June 2023 Amendments and Adjusted Term SOFR thereafter, (ii) Base Rate, (iii) Canadian Prime, (iv) an Alternative Currency Daily Rate, or (v) an Alternative Currency Term Rate (each as defined in the Credit Facility) plus a specified margin. The margin for borrowings under the Revolver and the Incremental Term Loan ranges from 1.50% to 2.25% for LIBOR and Adjusted Term SOFR borrowings (as applicable) and Alternative Currency borrowings, and from 0.50% to 1.25% for Base Rate and Canadian Prime borrowings, in each case depending on the rate we select and our consolidated leverage ratio (as defined in the Credit Facility). Commitment fees range from 0.30% to 0.45% depending on our consolidated leverage ratio. At December 31, 2023, the Initial Term Loan bears interest at Adjusted Term SOFR plus 2.125%, and the Incremental Term Loan bears interest at Adjusted Term SOFR plus 1.75%. Prior to the December 2021 amendment of the Credit Facility, the margin for borrowings under the Revolver ranged from 0.75% to 2.5%, commitment fees ranged from 0.35% to 0.50%, in each case depending on the rate we selected and our consolidated leverage ratio, the Initial Term Loan bore interest at LIBOR plus 2.125%, and the Terminated Term Loan bore interest at LIBOR plus 2.5%. We have entered into interest rate swap agreements to hedge against our exposures to the interest rate variability on a portion of our Term Loans. See note 20 for further detail. We are required to comply with certain restrictive covenants under the Credit Facility, including those relating to the incurrence of certain indebtedness, the existence of certain liens, the sale of certain assets, specified investments and payments, sale and leaseback transactions, and certain financial covenants relating to a defined interest coverage ratio and leverage ratio that are tested on a quarterly basis. Our Credit Facility also prohibits share repurchases for cancellation if our leverage ratio (as defined in such facility) exceeds a specified amount (Repurchase Restriction). At December 31, 2023 and December 31, 2022, we were in compliance with all restrictive and financial covenants under the Credit Facility, and the Repurchase Restriction was not in effect. The obligations under the Credit Facility are guaranteed by us and certain specified subsidiaries. Subject to specified exemptions and limitations, all assets of the guarantors are pledged as security for the obligations under the Credit Facility. The Credit Facility contains customary events of default. If an event of default occurs and is continuing (and is not waived), the Administrative Agent may declare all amounts outstanding under the Credit Facility to be immediately due and payable, and may cancel the lenders’ commitments to make further advances thereunder. In the event of a payment or other specified defaults, outstanding obligations accrue interest at a specified default rate. No such defaults occurred during 2021 to 2023. In each quarter of 2022 and 2023, we made scheduled principal repayments of $4.5625 under the Incremental Term Loan. In the fourth quarter of 2022, we also made a voluntary prepayment of $15.0 under the Initial Term Loan. During first quarter of 2021, we repaid an aggregate of $30.0 under the Terminated Term Loan. In October 2021, we borrowed $220.0 under the Revolver to fund a portion of the PCI acquisition price (acquired in November 2021). In December 2021, upon receipt of the net proceeds from the $365.0 Incremental Term Loan, we repaid all remaining amounts outstanding under the Terminated Term Loan ($145.0) and the $220.0 borrowed under the Revolver. In addition, we made intra-quarter borrowings under the Revolver during most quarters of 2021 to 2023, in each case drawn and repaid during the quarter of the borrowing, with no impact to the amounts outstanding at either the relevant quarter-end or year-end. Activity under our Credit Facility for the periods indicated is set forth below: Revolver (i) Term loans Outstanding balances as of December 31, 2020 $ — $ 470.4 Amount repaid in Q1 2021 — (30.0) Amounts borrowed in Q4 2021 220.0 365.0 Amount repaid in Q4 2021 (220.0) (145.0) Outstanding balances as of December 31, 2021 $ — $ 660.4 Amount repaid in Q1 2022 — (4.5625) Amount repaid in Q2 2022 — (4.5625) Amount repaid in Q3 2022 — (4.5625) Amount repaid in Q4 2022 — (19.5625) Outstanding balances as of December 31, 2022 $ — $ 627.2 Amount repaid in Q1 2023 — (4.5625) Amount repaid in Q2 2023 — (4.5625) Amount repaid in Q3 2023 — (4.5625) Amount repaid in Q4 2023 — (4.5625) Outstanding balances as of December 31, 2023 $ — $ 608.9 (i) In addition to borrowings for the acquisition of PCI, we drew on the Revolver for short term borrowings during most quarters of 2021, 2022 and 2023, and repaid such borrowings in full within the quarter borrowed. Such intra-quarter borrowings and repayments, other than those related to the acquisition of PCI, are offset against each other, and are excluded from this table. Intra-quarter borrowings (and repayments in equivalent amounts) in Q4 2023, Q3 2023, Q2 2023 and Q1 2023 were a cumulative aggregate of $270, $140, $200 and $281, respectively (Q4 2022, Q3 2022, Q2 2022 and Q1 2022 — $300, $359, $348 and $228, respectively; Q4 2021, Q3 2021, Q2 2021 and Q1 2021 — $300, nil, nil and nil, respectively). The following table sets forth, at the dates shown: outstanding borrowings under the Credit Facility, excluding ordinary course L/Cs; notional amounts under our interest rate swap agreements, outstanding lease obligations; and information regarding outstanding L/Cs, surety bonds and overdraft facilities: Outstanding borrowings Notional amounts under interest rate swaps (note 20) December 31 December 31 December 31 December 31 Borrowings under the Revolver (i) $ — $ — $ — $ — Borrowings under the Term Loans (i) Initial Term Loan $ 280.4 $ 280.4 $ 100.0 $ 100.0 Incremental Term Loan 346.8 328.5 230.0 230.0 Total $ 627.2 $ 608.9 $ 330.0 $ 330.0 Total borrowings under Credit Facility $ 627.2 $ 608.9 Unamortized debt issuance costs related to Term Loans (i) (3.5) (2.6) Lease obligations (ii) 162.4 176.5 $ 786.1 $ 782.8 Total Credit Facility and lease obligations: Current portion $ 52.2 $ 51.6 Long-term portion 733.9 731.2 $ 786.1 $ 782.8 L/Cs, surety bonds and overdraft facilities: Outstanding L/Cs under the Revolver $ 18.0 $ 10.5 Outstanding L/Cs and surety bonds outside the Revolver 23.8 16.5 Total $ 41.8 $ 27.0 Available uncommitted bank overdraft facilities $ 198.5 $ 198.5 Amounts outstanding under available uncommitted bank overdraft facilities $ — $ — (i) We incur debt issuance costs upon execution of, subsequent security arrangements under, and amendments to, the Credit Facility. Debt issuance costs incurred in 2023 totaling $0.2 (2022 — $0.3; 2021 — $2.2) in connection with the Revolver were deferred as other assets on our consolidated balance sheets and are amortized on a straight line basis over the term (or remaining term, as applicable) of the Revolver. Debt issuance costs incurred in 2023 totaling $0.2 (2022 — $0.3; 2021 — $1.8) in connection with our Term Loans were deferred as long-term debt on our consolidated balance sheets and are amortized over their respective terms using the effective interest rate method. In December 2021, we accelerated the amortization of $2.6 of unamortized deferred financing costs related to the termination of the Terminated Term Loan, which we recorded in other charges (see note 15). (ii) These lease obligations represent the present value of unpaid lease payment obligations recognized as liabilities at December 31, 2022 and December 31, 2023 , respectively, which have been discounted using our incremental borrowing rate on the lease commencement dates. In addition to these lease obligations, we have commitments under additional real property leases not recognized as liabilities at December 31, 2023, because such leases had not yet commenced as of such date. A description of these leases and minimum lease payments thereunder are disclosed in note 24. At December 31, 2023, the current portion of our lease obligations was $34.6 (December 31, 2022 — $35.1) and the long-term portion was $141.9 (December 31, 2022 — $127.3). At December 31, 2023, the contractual undiscounted cash flows for lease obligations recognized as of such date were as follows: Years ending December 31 2024 $ 43.8 2025 37.5 2026 31.0 2027 21.5 2028 17.1 Thereafter 67.4 $ 218.3 Other lease-related expenses that were recognized in the consolidated statement of operations are as follows: Year ended December 31 2021 2022 2023 Interest expense on lease obligations $ 6.6 $ 8.1 $ 9.6 Variable lease payments not included in the measurement of lease obligations $ 0.9 $ 1.2 $ 0.7 Expenses relating to short-term leases or low-value leases $ 1.5 $ 1.8 $ 1.4 See note 16 for a discussion of finance costs. |
Capital Stock
Capital Stock | 12 Months Ended |
Dec. 31, 2023 | |
Share Capital and Share-based Payment Arrangements [Abstract] | |
Capital Stock | CAPITAL STOCK: We are authorized to issue an unlimited number of SVS, which entitle the holder to one vote per share, and an unlimited number of multiple voting shares (MVS), which entitle the holder to 25 votes per share. The SVS and MVS vote together as a single class on all matters submitted to a vote of shareholders, including the election of directors, except as otherwise required by law. The holders of the SVS and MVS are entitled to share ratably, as a single class, in any dividends declared subject to any preferential rights of any outstanding preferred shares in respect of the payment of dividends. Each MVS is convertible at any time at the option of the holder thereof and automatically, under certain circumstances, into one SVS. However, subsequent to the August Secondary Offering (defined below), no MVS are outstanding. In connection with two underwritten secondary public offerings by Onex, our then-controlling shareholder, completed in June 2023 (June Secondary Offering) and August 2023 (August Secondary Offering, and together with the June Secondary Offering, the Secondary Offerings), we issued an aggregate of approximately 18.6 million SVS, upon conversion of an equivalent number of our MVS. The Secondary Offerings had nil impact on our aggregate capital stock amount. We are also authorized to issue an unlimited number of preferred shares, issuable in series. No preferred shares have been issued to date. (a) Capital transactions: Number of shares (in millions) SVS MVS Issued and outstanding at December 31, 2020 110.5 18.6 Issued from treasury (i) 0.03 — Cancelled under normal course issuer bid (NCIB) (4.4) — Issued and outstanding at December 31, 2021 106.1 18.6 Issued from treasury (i) 0.07 — Cancelled under NCIB (3.14) — Issued and outstanding at December 31, 2022 103.0 18.6 Issued from treasury (i) 0.05 — Cancelled under NCIB (2.7) — Conversion of MVS into SVS in connection with the Secondary Offerings 18.6 (18.6) Issued and outstanding at December 31, 2023 119.0 — (i) In 2023, 0.03 million SVS (2022 — 0.02 million; 2021 — 0.02 million) were issued from treasury upon the exercise of stock options for aggregate cash proceeds of $0.3 ( 2022 — $0.2; 2021 — $0.2). In 2023, we issued 0.02 million (2022 — 0.05 million; 2021 — 0.01 million) SVS from treasury with an ascribed value of $0.2 (2022 — $0.4; 2021 — $0.1) upon the vesting of certain RSUs . We settled other RSUs and PSUs with SVS purchased in the open market (described below). We have repurchased SVS in the open market, or as otherwise permitted, for cancellation through NCIBs, which allow us to repurchase a limited number of SVS during a specified period. The maximum number of SVS we are permitted to repurchase for cancellation under each NCIB is reduced by the number of SVS we arrange to be purchased by any non-independent broker in the open market during the term of such NCIB to satisfy delivery obligations under our SBC plans. We from time-to-time enter into automatic share purchase plans (ASPPs) with a broker, instructing the broker to purchase our SVS in the open market on our behalf, either for cancellation under an NCIB (NCIB ASPPs) or for delivery obligations under our SBC plans (SBC ASPPs), including during any applicable trading blackout periods, up to specified maximums (and subject to certain pricing and other conditions) through the term of each ASPP. On December 2, 2021, the TSX accepted our notice to launch an NCIB (2021 NCIB), which allowed us to repurchase, at our discretion, from December 6, 2021 until the earlier of December 5, 2022 or the completion of purchases thereunder, up to approximately 9.0 million SVS in the open market, or as otherwise permitted, subject to the normal terms and limitations of such bids. We entered into several NCIB ASPPs and SBC ASPPs (each with independent brokers) during the term of the 2021 NCIB, all of which have expired. At December 31, 2021, we recorded an accrual of $7.5 (2021 NCIB Accrual), representing the estimated contractual maximum number of permitted SVS repurchases (Contractual Maximum Quantity) for cancellation (0.7 million SVS) under an NCIB ASPP entered into in December 2021, which was reversed in 2022. At December 31, 2021, we also recorded an accrual of $33.8 (2021 SBC Accrual), representing the estimated Contractual Maximum Quantity (3.0 million SVS) under an SBC ASPP that we entered into in December 2021, which was reversed in 2022. On December 8, 2022, the TSX accepted our notice to launch another NCIB (2022 NCIB), which allowed us to repurchase, at our discretion, from December 13, 2022 until the earlier of December 12, 2023 or the completion of purchases thereunder, up to approximately 8.8 million SVS in the open market, or as otherwise permitted, subject to the normal terms and limitations of such bids. We entered into several NCIB ASPPs and SBC ASPPs (each with independent brokers) during the term of the 2022 NCIB, all but one of which expired prior to December 31, 2023 (see below for ASPP accruals we recorded at December 31, 2023). There were no accruals at December 31, 2022 in connection with any NCIB ASPP or SBC ASPP. On December 12, 2023, the TSX accepted our notice to launch a new NCIB (2023 NCIB), which allows us to repurchase, at our discretion, from December 14, 2023 until the earlier of December 13, 2024 or the completion of purchases thereunder, up to approximately 11.8 million of our SVS in the open market, or as otherwise permitted, subject to the normal terms and limitations of such bids. At December 31, 2023, approximately 11.8 million SVS remained available for repurchase under the 2023 NCIB either for cancellation or SBC delivery purposes. At December 31, 2023, we recorded an accrual of: (i) $2.7, representing the estimated Contractual Maximum Quantity (0.1 million SVS) under an NCIB ASPP we entered into in December 2023 (2023 NCIB Accrual); and (ii) $7.5, representing the estimated Contractual Maximum Quantity (0.3 million SVS) under an SBC ASPP we entered into in September 2023 (2023 SBC Accrual). Information regarding share repurchase activities, including SVS purchases for cancellation under NCIB ASPPs and for SBC plan delivery obligations under SBC ASPPs, for the years indicated is set forth below: Year ended December 31 2021 2022 2023 Aggregate cost (1) of SVS repurchased for cancellation (2) $ 35.9 $ 34.6 $ 35.6 Number of SVS repurchased for cancellation (in millions) (3) 4.4 3.4 2.6 Weighted average price per share for repurchases $ 8.21 $ 10.45 $ 13.83 Aggregate cost (1) of SVS repurchased for delivery under SBC plans (4) $ 20.6 $ 44.9 $ 82.3 Number of SVS repurchased for delivery under SBC plans (in millions) (5) 1.9 3.9 3.7 (1) Includes transaction fees. (2) For 2021, excludes the $7.5 2021 NCIB Accrual; for 2023, excludes the $2.7 2023 NCIB Accrual. (3) Includes 0.9 million, 2.5 million and 2.8 million repurchases of SVS for cancellation under NCIB ASPPs in 2023, 2022 and 2021, respectively. (4) For 2021, excludes the $33.8 2021 SBC Accrual; for 2023, excludes the $7.5 2023 SBC Accrual. (5) Includes 3.7 million, 3.9 million and 0.7 million repurchases of SVS for SBC delivery obligations under SBC ASPPs in 2023, 2022 and 2021, respectively. December 31 2021 2022 2023 Number of SVS held by trustee for delivery under SBC plans (1)(2) (in millions) 1.4 1.5 3.3 Value of SVS held by trustee for delivery under SBC plans (2) $ 15.1 $ 16.7 $ 72.6 (1) For accounting purposes, we classify these shares as treasury stock until they are delivered pursuant to the plans. (2) The number and value of SVS held in 2021 and 2023 exclude the 2021 SBC Accrual and the 2023 SBC Accrual, respectively. (b) Employee SBC : LTIP: Under the LTIP, we may grant stock options, stock appreciation rights, RSUs and PSUs (Awards) to eligible employees and consultants. Eligible directors may be granted Awards other than stock options. We may, at the time of grant, authorize the grantees to elect to settle these awards either in cash or in SVS. Absent such permitted election, we intend to settle vested grants under the LTIP in SVS (on a one-for-one basis), either with SVS purchased in the open market or issued from treasury (up to a maximum aggregate of 29.0 million SVS). As of December 31, 2023, 9.9 million SVS remain reserved for issuance from treasury under the LTIP, covering potential issuances of SVS for outstanding awards and for potential future award grants. Celestica Share Unit Plan (CSUP): Under the CSUP, we may grant RSUs and PSUs to directors and eligible employees. We have the option to settle vested RSUs and PSUs issued thereunder in SVS (on a one-for-one basis) purchased in the open market, or in cash. We intend to settle vested RSUs and PSUs with SVS. Employee SBC Expense: Employee SBC expense may fluctuate from period-to-period to account for, among other things, new grants, forfeitures resulting from employee terminations or resignations, and the recognition of accelerated SBC expense for employees eligible for retirement. The portion of employee SBC expense that relates to performance-based compensation is subject to adjustment in any period to reflect changes in the estimated level of achievement of pre-determined performance goals and financial targets. Based on reviews of the status of the non-market performance vesting condition and modifier, we recorded a $12.3 expense in 2022 and a $14.7 expense in 2023 to reflect changes in the estimated number of PSUs expected to vest at the beginning of February 2023 and February 2024, respectively. No significant adjustments were recorded in 2021 with respect to PSUs expected to vest at the beginning of February 2022. We entered into the TRS Agreement to manage our cash flow requirements and exposure to fluctuations in the share price of our SVS in connection with the settlement of certain outstanding equity awards under our SBC plans. See notes 2( o ) and 20 for further detail. Information regarding employee SBC expense and TRS FVAs for the years indicated is set forth below: Year ended December 31 2021 2022 2023 Employee SBC expense in cost of sales $ 13.0 $ 20.3 $ 22.6 Employee SBC expense in SG&A 20.4 30.7 33.0 Total employee SBC expense $ 33.4 $ 51.0 $ 55.6 TRS FVAs (gains) in cost of sales $ — $ — $ (18.6) TRS FVAs (gains) in SG&A — — (27.0) Total TRS FVAs (gains) $ — $ — $ (45.6) Combined effect of employee SBC expense and TRS FVAs $ 33.4 $ 51.0 $ 10.0 For RSUs and DSUs issued to eligible directors under our Directors’ Share Compensation Plan (DSC Plan), see paragraph (c) below. (i) Stock options: We are permitted to grant stock options under our LTIP. Stock options are granted at prices equal to the closing market price on the day prior to the grant date and are exercisable during a period not to exceed 10 years from the grant date. Stock option grants and exercises were as follows for the years indicated: Number of Weighted Average (in millions) Outstanding at January 1, 2021 0.34 $ 12.78 Granted 0.09 $ 10.58 Exercised (0.02) $ 6.54 Outstanding at December 31, 2021 0.41 $ 12.70 Exercised (0.02) $ 6.36 Outstanding at December 31, 2022 0.39 $ 12.38 Exercised (0.02) $ 10.58 Outstanding at December 31, 2023 0.37 $ 12.72 The following stock options* were outstanding as at December 31, 2023: Range of Exercise Prices Outstanding Weighted Average Weighted Average Remaining Life Exercisable Weighted Average (in millions) (years) (in millions) $10.58 to $13.23 0.4 12.72 2.8 0.3 $13.03 * The exercise prices were determined by converting the grant date fair value into U.S. dollars at the 2023 year-end exchange rate. We amortize the estimated grant date fair value of stock options to expense over the vesting period (generally 4 years). The grant date fair value of stock options granted in 2021 was determined using the Black-Scholes option pricing model and the following assumptions: risk-free interest rate (based on U.S. government bond yields) of 1.09%, expected volatility of the market price of our shares (based on historical volatility of our share price) of 43%, and the expected option life of 7 years (based on historical option holder behavior). No stock options were granted in 2022 or 2023. In February 2024, 0.3 million stock options were exercised. (ii) RSUs and PSUs: We grant RSUs and PSUs to employees pursuant to our LTIP and CSUP. Each vested RSU and PSU generally entitles the holder to receive one SVS. See note 2 (l) . We amortize the grant date fair value of RSUs and PSUs to expense over the vesting period. The grant date fair value of RSUs is based on the market value of our SVS at the time of grant. With respect to PSUs, employees are granted a target number of PSUs (set forth for the years indicated in the table below). The number of PSUs that will actually vest will vary from 0% to 200% of the target amount granted based on the level of achievement of the relevant performance conditions, including: (i) for 2021 and 2022 grants, a pre-determined non-market performance measurement and modifier and a relative TSR modifier; and (ii) commencing in 2023, a different pre-determined non-market performance measurement and a relative TSR modifier (described in note 2 (l) ). The grant date fair value of the TSR modifier was based on a Monte Carlo simulation model and a premium of 118% for 2023 (2022 — 116%; 2021 — 109%). The grant date fair value of the non-TSR-based performance measurement and modifier (where applicable) was based on the market value of our SVS at the time of grant and is subject to adjustment to reflect changes in the estimated level of achievement related to the applicable performance condition. Vested awards were settled with SVS purchased in the open market by a broker, or issued from treasury. The assumptions used in the measurement of the grant date fair values of PSUs were as follows: Year ended December 31 2021 2022 2023 Expected volatility 49 % 52 % 53 % Expected life 3 years 3 years 3 years Risk-free interest rate (based on 3-year Treasury bonds) 0.2 % 1.4 % 3.9 % Information regarding aggregate RSU, PSU and stock option grants to employees, as applicable, for the years indicated is set forth below: Year ended December 31 2021 2022 2023 RSUs Granted: Number of awards (in millions) 3.0 2.0 2.0 Weighted average grant date fair value per unit $ 8.36 $ 12.17 $ 13.20 PSUs Granted: Number of awards (in millions, representing 100% of target) 2.9 1.3 1.3 Weighted average grant date fair value per unit $ 9.49 $ 14.27 $ 15.06 Stock Options Granted: Number of awards (in millions) 0.1 — — Weighted average grant date fair value per option $ 4.22 $ — $ — December 31 2021 2022 2023 Number of outstanding RSUs (in millions) 4.6 3.8 3.2 Number of outstanding PSUs (in millions, representing 100% of target granted) 6.1 5.1 4.6 In 2023, we settled a portion of RSUs and PSUs that vested during the year with a cash payment of $49.8. In 2023, we also made a cash payment of $7.7 for the withholding taxes in connection with the RSUs and PSUs that vested during the year. See below for our cash settlement of Onex's DSUs in October 2023. (c) Director SBC : We grant DSUs to certain members of our Board (and Onex prior to the termination of the Services Agreement on September 3, 2023) under our DSC Plan. DSUs granted to directors may be settled with SVS (on a one-for-one basis) purchased in the open market, or with cash (at the discretion of the Company). We also grant RSUs (under specified circumstances) to certain directors as compensation under the DSC Plan. RSUs granted to directors vest ratably over a three-year period and are governed by the terms of our LTIP. Each vested RSU generally entitles the holder thereof to one SVS (see note 2 (l) ). In connection with the retirement of Carol Perry from our Board and the retirement of William A. Etherington from our Board and from the Board of Directors of Onex, the 0.2 million DSUs held by Ms. Perry and the 0.5 million DSUs held by Mr. Etherington were settled with SVS on a one-for-one basis in June 2023. In connection with the termination of the Services Agreement, we paid Onex approximately $9.2 in cash in October 2023 to settle Onex’s then-outstanding DSUs. In connection with the retirement of Eamon Ryan from our Board, 0.03 million RSUs and 0.3 million DSUs held by Mr. Ryan were settled with SVS on a one-for-one basis in April 2022 and July 2022, respectively. Information regarding director SBC expense for the years indicated is set forth below: Year ended December 31 2021 2022 2023 Director SBC expense in SG&A (1) $ 2.1 $ 2.2 $ 2.4 DSUs Granted: Number of awards (in millions) 0.1 0.1 0.1 Weighted average grant date fair value per unit $ 8.98 $ 10.18 $ 17.72 RSUs Granted: Number of awards (in millions) 0.05 0.04 0.02 Weighted average grant date fair value per unit $ 8.92 $ 10.44 $ 18.15 December 31 2021 2022 2023 Number of DSUs outstanding (in millions) 2.2 2.1 1.1 Number of RSUs issued to directors outstanding (in millions) 0.1 0.1 0.1 |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss, Net of Tax | 12 Months Ended |
Dec. 31, 2023 | |
Subclassifications of assets, liabilities and equities [abstract] | |
Accumulated Other Comprehensive Loss, Net of Tax | ACCUMULATED OTHER COMPREHENSIVE LOSS, NET OF TAX: Year ended December 31 Note 2021 2022 2023 Opening balance of foreign currency translation account $ (10.3) $ (18.0) $ (24.7) Foreign currency translation adjustments (7.7) (6.7) (3.4) Closing balance (18.0) (24.7) (28.1) Opening balance of unrealized net gain (loss) on currency forward cash flow hedges $ 11.6 $ (1.9) $ 5.3 Net gain (loss) on currency forward cash flow hedges (i) (5.3) (5.9) 2.6 Reclassification of net loss (gain) on currency forward cash flow hedges to operations (ii) (8.2) 13.1 (4.4) Closing balance (iii) (1.9) 5.3 3.5 Opening balance of unrealized net gain (loss) on interest rate swap cash flow hedges $ (16.5) $ (6.9) $ 13.7 Net gain on interest rate swap cash flow hedges (iv) 2.4 18.1 5.0 Reclassification of net loss (gain) on interest rate swap cash flow hedges to operations 7.2 2.5 (9.0) Closing balance (v) (6.9) 13.7 9.7 Actuarial gains (losses) on pension and non-pension post-employment benefit plans 18 $ 9.3 $ 33.5 $ (7.6) Reclassification of actuarial losses (gains) to deficit (9.3) (33.5) 7.6 Closing balance — — — Accumulated other comprehensive loss $ (26.8) $ (5.7) $ (14.9) (i) Net of an income tax expense of nil for 2023 (2022 — net of a $1.6 income tax recovery; 2021 — net of a $0.5 income tax recovery). (ii) Including a $1.0 release in income tax recovery for 2023 (2022 — net of release of $2.2 in income tax recovery; 2021 — net of release of $0.6 in income tax expense) associated with the reclassification of net hedge (gain) loss to the consolidated statements of operations. (iii) Net of an income tax expense of $1.5 at December 31, 2023 (December 31, 2022 — net of a $0.5 income tax expense; December 31, 2021 — net of $0.1 in income tax recovery). (iv) Including an income tax recovery of $1.5 for 2023 (2022 — net of $5.0 in income tax expense; 2021 — net of nil income tax expense). (v) Net of an income tax expense of $3.5 at December 31, 2023 (December 31, 2022 — net of $5.0 in income tax expense; and December 31, 2021 — net of nil income tax expense). |
Expenses By Nature
Expenses By Nature | 12 Months Ended |
Dec. 31, 2023 | |
Analysis of income and expense [abstract] | |
Expenses By Nature | EXPENSES BY NATURE: We have presented our consolidated statement of operations by function. Items included in our cost of sales and SG&A for the years indicated are set forth below: Year ended December 31 2021 2022 2023 Employee-related costs $ 819.4 $ 955.8 $ 1,028.7 SBC expense included in above employee-related costs 33.4 51.0 55.6 Freight and transportation costs 142.5 186.1 144.0 Depreciation expense (i) 100.8 104.6 120.8 Rental expense (i) 2.4 3.0 2.1 (i) The amortization of ROU assets is included in depreciation expense. See note 7. We expense the costs of low-value and short-term leases in our consolidated statement of operations on a straight-line basis as rental expense. See note 11 for disclosure of these lease expenses. |
Other Charges, Net of Recoverie
Other Charges, Net of Recoveries | 12 Months Ended |
Dec. 31, 2023 | |
Analysis of income and expense [abstract] | |
Other Charges, Net of Recoveries | OTHER CHARGES, NET OF RECOVERIES: Year ended December 31 2021 2022 2023 Restructuring charges, net of recoveries (a) $ 10.5 $ 8.4 $ 11.2 Transition Costs (Recoveries) (b) 1.2 (2.1) 3.9 Credit Facility-related charges (c) 3.0 — — Acquisition Costs, net of recoveries (d) 6.1 0.4 1.0 Other recoveries, net of costs (e) (10.5) — (0.9) $ 10.3 $ 6.7 $ 15.2 In addition to the items set forth above, other charges, net of recoveries for 2022 included approximately $95 in aggregate charges representing write-downs to inventories, a building and equipment resulting from the fire event described in note 26, as well as equivalent amounts in recoveries, as we expect to fully recover the written-down amounts pursuant to the terms and conditions of our insurance policies. As a result, such event had no net impact on other charges, net of recoveries during 2022. See note 26 for further detail. (a) Restructuring charges, net of recoveries: Our restructuring activities in 2023 consisted primarily of actions to adjust our cost base to address reduced levels of demand in certain of our businesses and geographies. We recorded net restructuring charges of $11.2 in 2023, consisting of: (i) cash restructuring charges of $9.6, primarily for employee termination costs, and (ii) non-cash restructuring charges of $2.9, consisting primarily of the accelerated depreciation of equipment, building improvements and ROU assets related to disengaging programs and vacated properties, offset in part by non-cash restructuring recoveries of $1.3 , representing gains on the sale of surplus equipment and certain sublet recoveries in excess of the carrying value of the related leases. Our restructuring provision at December 31, 2023 was $3.6 (December 31, 2022 — $5.8; December 31, 2021 — $6.1), which we recorded in the current portion of provisions on our consolidated balance sheet. See note 10. We recorded restructuring charges of $8.4 in 2022, consisting of cash charges of $7.5, primarily for employee termination costs, and non-cash charges of $0.9, consisting of the accelerated depreciation of ROU assets in connection with vacated properties and assets related to disengaging programs. We recorded restructuring charges of $10.5 in 2021, consisting of cash charges of $9.8, primarily for employee termination costs, and net non-cash charges of $0.7 (consisting of non-cash restructuring charges of $1.5 and non-cash restructuring recoveries of $0.8). The non-cash charges consisted primarily of the accelerated depreciation of equipment related to disengaged programs. The non-cash restructuring recoveries primarily reflect gains on the sale of surplus equipment. See notes 2 (k) and 10 for further details regarding our restructuring provisions. (b) Transition Costs (Recoveries): Transition Costs consist of costs recorded in connection with: (i) the transfer of manufacturing lines from closed sites to other sites within our global network; (ii) the sale of real properties unrelated to restructuring actions (Property Dispositions); and (iii) in 2023, the Purchaser Lease Charge (defined below). Transition Costs consist of direct relocation and duplicate costs (such as rent expense, utility costs, depreciation charges, and personnel costs) incurred during the transition periods, as well as cease-use and other costs incurred in connection with idle or vacated portions of the relevant premises that we would not have incurred but for these relocations, transfers and dispositions. Transition Recoveries consist of any gains recorded in connection with Property Dispositions. In connection with our March 2019 Toronto real property sale, we treated associated relocation and duplicate costs as Transition Costs. As part of such sale, we entered into a 10-year lease with the purchaser of such property for our then-anticipated headquarters, to be built by such purchaser on the site of our former location (Purchaser Lease). However, as previously disclosed, we were informed that due to construction issues, the commencement date of the Purchaser Lease would be delayed beyond the prior target of May 2023. As a result, in November 2022, we extended (on a long-term basis) the lease on our current corporate headquarters (related ROU assets and lease liabilities have been recognized in our consolidated financial statements). Subsequently, we were informed that the Purchaser Lease would commence in June 2024. In the third quarter of 2023 (Q3 2023), we executed a sublease for a portion of the space under the Purchaser Lease. Consistent with our prior treatment of duplicate costs incurred as a result of our 2019 Toronto real property sale, we recorded Transition Costs of $3.9 (Purchaser Lease Charge) in 2023, representing the excess of rental expenses under the Purchaser Lease (with respect to the subleased space) over anticipated rental recoveries under the sublease. See note 24 for a description of our lease obligations under the Purchaser Lease. We recorded nil Transition Recoveries in 2023. In 2022, we recorded $1.5 of Transition Costs, related primarily to the disposal of assets reclassified as held for sale in Q1 2022, and $3.6 of Transition Recoveries, reflecting the gain on the subsequent disposal of such assets held for sale. In 2021, we recorded Transition Costs of $1.2, pertaining to the transfer of manufacturing lines from closed sites to other sites within our global network, and nil Transition Recoveries. (c) Credit Facility-related charges: Credit Facility-related charges for 2021 consist primarily of a $2.6 charge to accelerate the amortization of unamortized deferred financing costs upon termination of the Terminated Term Loan in connection with our December 2021 amendment to the Credit Facility (described in note 11). (d) Acquisition Costs (Recoveries): We incur consulting, transaction and integration costs relating to potential and completed acquisitions. We also incur charges or releases related to the subsequent re-measurement of indemnification assets or the release of indemnification or other liabilities recorded in connection with acquisitions, when applicable. Collectively, these costs, charges and releases are referred to as Acquisition Costs (Recoveries). We recorded $1.0 of Acquisition Costs in 2023 , all related to potential acquisitions, and $0.4 of Acquisition Costs in 2022, all related to our PCI acquisition. We recorded no Acquisition Recoveries in either 2022 or 2023. In 2021, we recorded net Acquisition Costs of $6.1, consisting of $7.3 in costs related to acquisition activities, including $4.8 related to the acquisition of PCI, offset in part by a $1.2 Acquisition Recovery, consisting of a release related to certain indirect tax liabilities previously recorded in connection with our acquisition of Impakt in November 2018. (e) Other recoveries, net of costs |
Finance Costs
Finance Costs | 12 Months Ended |
Dec. 31, 2023 | |
Analysis of income and expense [abstract] | |
Finance Costs | FINANCE COSTS: Finance costs consist of interest expense and fees related to our Credit Facility (including debt issuance and related amortization costs), our interest rate swap agreements, the TRS Agreement, our A/R sales program and SFPs, and interest expense on our lease obligations, net of interest income earned. See notes 4 and 11. We paid finance costs of $65.5 in 2023 (2022 — $50.0; 2021 — $26.0), including $0.4 in debt issuance costs paid in 2023 (2022 — $0.8; 2021 — $3.6). |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2023 | |
Disclosure of transactions between related parties [abstract] | |
Related Party Transactions | RELATED PARTY TRANSACTIONS: Prior to the completion of the August Secondary Offering, Onex beneficially owned, controlled, or directed, directly or indirectly, all of our issued and outstanding MVS. Accordingly, Onex had the ability to exercise significant influence over our business and affairs and generally had the power to determine all matters submitted to a vote of our shareholders where the SVS and MVS vote together as a single class. Mr. Gerald Schwartz, the Chairman of the Board of Onex, indirectly owns shares representing the majority of the voting rights of the shares of Onex. However, upon completion of the August Secondary Offering, we have no MVS outstanding and Onex is no longer our controlling shareholder. In connection with the June Secondary Offering and August Secondary Offering, we entered into underwriting agreements with Onex and certain underwriters. We also agreed to indemnify Onex and the underwriters against certain claims, including claims under the U.S. Securities Act and applicable Canadian securities laws, based on the relevant U.S. registration statement and related U.S. and Canadian prospectuses. Prior to September 3, 2023, we were a party to the Services Agreement with Onex for the services of Mr. Tawfiq Popatia, an officer of Onex, as a director of Celestica, pursuant to which Onex received an annual fee of $0.235 (payable in DSUs) in equal quarterly installments in arrears, for such services. Mr. Popatia resigned from our Board, and the Services Agreement terminated automatically pursuant to its terms, on September 3, 2023. In accordance with the provisions of the Services Agreement, we paid Onex approximately $9.2 in cash on October 18, 2023 to settle Onex’s outstanding DSUs. Compensation of key management personnel: Our key management team consists of directors and senior executive officers. The aggregate compensation expenses we recognized under IFRS for our directors and senior executive officers for the periods shown were as follows: Year ended December 31 2021 2022 2023 Short-term employee benefits and costs $ 7.3 $ 9.7 $ 9.6 Post-employment and other long-term benefits 0.6 0.5 0.6 SBC (including DSUs and RSUs to eligible directors) 17.3 25.5 29.2 $ 25.2 $ 35.7 $ 39.4 |
Pension and Non-pension Post-em
Pension and Non-pension Post-employment Benefit Plans | 12 Months Ended |
Dec. 31, 2023 | |
Disclosure of information about defined benefit plans [abstract] | |
Pension and Non-pension Post-employment Benefit Plans | PENSION AND NON-PENSION POST-EMPLOYMENT BENEFIT PLANS: (a) Plan summaries: We provide pension and non-pension post-employment benefit plans for our employees. At December 31, 2023, such plans included our pension plan for employees in the United Kingdom (U.K. pension plan), which generally provides participants with stated benefits on retirement based on their pensionable service, either in annuities and/or lump sum payments. The U.K. pension plan is closed to new members, and at December 31, 2023, none (December 31, 2022 — approximately 1%) of such plan members are active employees of the Company. Defined contribution pension plans are offered to certain employees, mainly in Canada and the U.S. We provide non-pension post-employment benefits (under other benefit plans) to retired and terminated employees in Canada, the U.S., Mexico, Thailand, South Korea, Indonesia and the Philippines. These benefits may include one-time retirement and specified termination benefits, medical, surgical, hospitalization coverage, supplemental health, dental and/or group life insurance. To mitigate the actuarial and investment risks of our defined benefit pension plans, we purchase annuities from time to time (using existing plan assets) from third party insurance companies for certain, or all, plan participants. The purchase of annuities by the pension plan substantially hedges the financial risks associated with the related pension obligations. The overall governance of our pension plans is conducted by our Human Resources and Compensation Committee which, through annual reviews, approves material plan changes, reviews funding levels, investment performance, compliance matters and plan assumptions, and ensures that the plans are administered in accordance with local statutory requirements. We have established a Canadian and a U.S. Pension Committee to govern our Canadian and U.S. pension plans respectively. The U.K. pension plan is governed by a Board of Trustees, composed of employee and company representation. Both the Canadian and U.S. Pension Committees, and the U.K. Board of Trustees review funding levels, investment performance and compliance matters for their respective plans. Our pension funding policy is to contribute amounts sufficient, at minimum, to meet local statutory funding requirements. For our defined benefit pension plans (primarily our U.K. pension plan), local regulatory bodies either define the minimum funding requirement or approve the funding plans submitted by us. We may make additional discretionary contributions taking into account actuarial assessments and other factors. The contributions that we make to support ongoing plan obligations are recorded in the respective asset or liability accounts on our consolidated balance sheet. Our U.K. pension plan requires an actuarial valuation to be completed every three years. The most recent actuarial valuation used a measurement date of April 2022 and was duly completed in 2023. We currently fund our non-pension post-employment benefit plans as we incur benefit payment obligations thereunder. Excluding our mandatory plans, the most recent actuarial measurements for our largest non-pension post-employment benefit plans were completed using valuation dates of May 2022 (Canada) and January 2022 (U.S.). The next actuarial measurements for these plans will have valuation dates of May 2025 and January 2024, respectively. We accrue the expected costs of providing non-pension post-employment benefits during the periods in which the employees render service. We used a measurement date of December 31, 2023 for the accounting valuation for pension and non-pension post-employment benefits. Our pension plans are exposed to market risks such as changes in interest rates, inflation, and fluctuations in investment values, as well as financial risks including counterparty risks of financial institutions from which annuities have been purchased for specified plans. See note 20 (d) . Our plans are also exposed to non-financial risks, including the membership’s mortality and demographic changes, as well as regulatory changes. We manage the funding level risk of defined benefit pension plans through our asset allocation strategy for each plan. In the U.K., the majority of the obligations under our U.K. pension plan have been hedged with the purchase of annuities with insurance companies as described above, but do not qualify for designation as hedges for application of hedge accounting purposes. Pension fund assets are invested primarily in fixed income and equity securities. Asset allocation between fixed income and equity securities is adjusted based on the expected life of the plan and the expected retirement dates of the plan participants. Our pension funds do not invest directly in our shares, but may invest indirectly as a result of the inclusion of our shares in certain investment funds. All of our plan assets are measured at their fair value using the fair value hierarchy inputs described in note 20. At December 31, 2023, $30.9 (December 31, 2022 — $32.1) of our plan assets were measured using Level 1 inputs of the fair value hierarchy and $182.6 (December 31, 2022 — $182.0) of our plan assets (comprised of insurance annuities) were measured using Level 3 inputs of the fair value hierarchy. None of our plan assets were measured using Level 2 inputs. Approximately 92% of our plan assets consist of annuities purchased with insurance companies, and assets held with financial institutions with a Standard and Poor’s long-term rating of A or above at December 31, 2023. The annuities purchased for our U.K. Main pension plan are held with financial institutions that are governed by local regulatory bodies. The remaining assets are held with financial institutions where ratings are not available. For these institutions, we monitor counterparty risk based on the diversification of plan assets. These plan assets are maintained in segregated accounts by a custodian that is independent from the fund managers. We believe that the counterparty risk is low. Plan assets are measured at their fair values; however, the amounts we are permitted to record for defined benefit plan assets may be restricted under IFRS, as described in note 2 (l) . Based on a plan-by-plan review of the terms, conditions, and statutory minimum funding requirements of our defined benefit plans, we determined that in 2023 and 2022, the present value of future pension refunds or reductions in future contributions to our pension plans exceeds the total of the fair value of plan assets net of the present value of related obligations for all of our defined benefit plans, except for our defined benefit plan in Japan. As a result of this review, we reduced the recorded amount of our Japan defined benefit plan assets by $2.6 as at December 31, 2023 (December 31, 2022 — $0.9), which was reflected in OCI. (b) Plan financials: The table below presents the fair market value of defined pension and other benefit plan assets: Fair Market Actual Asset 2022 2023 2022 2023 Quoted market prices: Debt investment funds $ 9.0 $ 8.9 4 % 4 % Equity investment funds 6.4 5.9 3 % 3 % Non-quoted market prices: Insurance annuities 182.0 182.6 85 % 85 % Other 16.7 16.1 8 % 8 % Total $ 214.1 $ 213.5 100 % 100 % The following tables provide a summary of the financial position of our defined pension and other benefit plans: Pension Plans Other Benefit Plans 2022 2023 2022 2023 Plan assets, beginning of year $ 359.9 $ 211.8 $ 2.0 $ 2.3 Interest income 5.8 10.1 — 0.1 Actuarial losses in other comprehensive income (i) (112.0) (10.0) — — Administrative expenses paid from plan assets (0.6) (0.4) — — Employer contributions 4.0 1.3 0.8 0.6 Employer direct benefit payments 0.1 0.3 2.4 3.7 Employer direct settlement payments — — — 1.1 Settlement payments from employer — — — (1.1) Settlement payments from plan — — — (0.1) Benefit payments from plan (10.4) (10.8) (0.4) (0.4) Benefit payments from employer (0.1) (0.3) (2.4) (3.7) Foreign currency exchange rate changes and other (34.9) 9.2 (0.1) (0.2) Plan assets, end of year $ 211.8 $ 211.2 $ 2.3 $ 2.3 (i) Actuarial gains or losses are determined based on actual return on plan assets less interest income as set forth in the table above. Pension Plans Other Benefit Plans 2022 2023 2022 2023 Accrued benefit obligations, beginning of year $ 373.9 $ 216.9 $ 89.1 $ 66.3 Current service cost 0.3 2.2 3.1 3.1 Past service cost and settlement/curtailment losses (ii) — — — 0.9 Interest cost 6.2 10.2 2.7 3.2 Actuarial losses (gains) in other comprehensive income from: — Changes in demographic assumptions (0.5) (6.5) (4.6) — — Changes in financial assumptions (124.7) 5.8 (15.7) 3.3 — Experience adjustments 7.5 (8.0) (1.8) 1.3 Settlement payments from employer — — — (1.1) Settlement payments from plan — — — (0.1) Benefit payments from plan (10.4) (10.8) (0.4) (0.4) Benefit payments from employer (0.1) (0.3) (2.4) (3.7) Foreign currency exchange rate changes and other (35.3) 9.8 (3.7) 1.6 Accrued benefit obligations, end of year $ 216.9 $ 219.3 $ 66.3 $ 74.4 Weighted average duration of benefit obligations (in years) 13 13 10 10 (ii) The settlement losses relate to employee terminations in connection with 2023 restructuring actions. The present value of the defined benefit obligations, the fair value of plan assets and the surplus or deficit in our defined benefit pension and other benefit plans are summarized as follows: Pension Plans Other Benefit Plans 2022 2023 2022 2023 Accrued benefit obligations, end of year $ (216.9) $ (219.3) $ (66.3) $ (74.4) Plan assets, end of year 211.8 211.2 2.3 2.3 Reduction of plan assets due to IFRS restrictions described in note 2 (l) (0.9) (2.6) — — Deficiency of plan assets over accrued benefit obligations $ (6.0) $ (10.7) $ (64.0) $ (72.1) The following table outlines the plan balances as reported on our consolidated balance sheets: December 31, 2022 December 31, 2023 Pension Other Total Pension Other Total Pension and non-pension post-employment benefit obligations $ (13.1) $ (63.9) $ (77.0) $ (16.0) $ (72.1) $ (88.1) Current other post-employment benefit obligations — (0.1) (0.1) — — — Non-current net pension assets (note 9) 7.1 — 7.1 5.3 — 5.3 $ (6.0) $ (64.0) $ (70.0) $ (10.7) $ (72.1) $ (82.8) The following table outlines the net expense recognized in our consolidated statement of operations for pension and non-pension post-employment benefit plans: Pension Plans Other Benefit Plans 2021 2022 2023 2021 2022 2023 Current service cost $ 2.5 $ 0.3 $ 2.2 $ 3.4 $ 3.1 $ 3.1 Net interest cost 0.4 0.4 0.1 2.4 2.7 3.1 Past service cost and settlement/curtailment losses — — — 0.3 — 0.9 Plan administrative expenses and other 1.3 0.6 0.5 — — — 4.2 1.3 2.8 6.1 5.8 7.1 Defined contribution pension plan expense (note 18(c)) 11.6 12.3 12.7 — — — Total expense for the year $ 15.8 $ 13.6 $ 15.5 $ 6.1 $ 5.8 $ 7.1 We generally record the expenses for pension plans and non-pension post-employment benefits in cost of sales, SG&A expenses, or other charges, depending on the nature of the expenses. The following table outlines the gains and losses, net of tax, recognized in OCI and reclassified directly to deficit for the years shown: Year ended December 31 2021 2022 2023 Cumulative losses, beginning of year $ 87.0 $ 77.7 $ 44.2 Actuarial losses (gains) recognized during the year (i) (9.3) (33.5) 7.6 Cumulative losses, end of year (ii) $ 77.7 $ 44.2 $ 51.8 (i) Including a $0.1 income tax recovery for 2023 (2022 — $5.0; 2021 — nil). (ii) Net of an income tax recovery of $6.6 as at December 31, 2023 (December 31, 2022 — $6.5; December 31, 2021 — $1.5). The following percentages and assumptions were used in measuring the plans for the years indicated: Pension Plans Other Benefit Plans 2021 2022 2023 2021 2022 2023 Weighted average discount rate at December 31 (i) for: Benefit obligations 1.8 4.9 4.6 3.2 4.9 4.5 Net pension cost 1.4 1.8 4.8 2.5 3.2 4.9 Weighted average rate of compensation increase for: Benefit obligations 1.1 1.1 2.9 4.6 4.6 4.6 Net pension cost 1.1 1.1 1.1 4.6 4.6 4.6 Healthcare cost trend rates: Immediate trend — — — 5.2 5.1 6.5 Ultimate trend — — — 4.0 4.0 4.0 Year the ultimate trend rate is expected to be achieved — — — 2040 2040 2040 (i) The weighted average discount rate is determined using publicly available rates for highly-rated bonds by currency in countries where we have a pension or non-pension benefit plan. A higher discount rate would decrease the present value of the benefit obligation, and a lower discount rate would increase the present value of the benefit obligation. We evaluate these assumptions on a regular basis taking into consideration current market conditions and historical market data. Actual results could differ materially from those estimates and assumptions. A one percentage-point increase or decrease in one of the following actuarial assumptions, holding other assumptions constant in each case, would increase (decrease) our benefit obligations as follows: Pension Plans Other Benefit Plans Year ended Year ended 1% Increase 1% Decrease 1% Increase 1% Decrease Discount rate $ (24.7) $ 30.5 $ (6.8) $ 7.5 Healthcare cost trend rate $ — $ — $ 3.4 $ (2.9) The sensitivity figures shown above were calculated by determining the change in our benefit obligations as at December 31, 2023 due to a 100 basis point increase or decrease to each of our significant actuarial assumptions used, specifically the discount rate and healthcare cost trend rate, in isolation, leaving all other assumptions unchanged from the original calculation. (c) Plan contributions: We made the following plan contributions for the years indicated below and estimate our contribution for 2024 to be as follows: Year ended December 31 Estimated Contribution * 2021 2022 2023 2024 Defined contribution plan $ 11.6 $ 12.3 $ 12.7 $ 12.7 Defined benefit plan 6.1 4.1 1.6 1.3 Total $ 17.7 $ 16.4 $ 14.3 $ 14.0 Non-pension post-employment benefit plans $ 3.6 $ 3.2 $ 5.4 $ 4.6 * Our actual contributions could differ materially from these estimates. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2023 | |
Income Taxes [Abstract] | |
Income Taxes | INCOME TAXES Year ended December 31 2021 2022 2023 Current income tax expense: Current year (i) $ 44.3 $ 99.1 $ 66.4 Adjustments for prior years, including changes to net provisions related to tax uncertainties (ii) (3.4) (10.4) (2.5) 40.9 88.7 63.9 Deferred income tax expense (recovery): Origination and reversal of temporary differences (i) (iii) 1.3 (22.3) (1.3) Changes in previously unrecognized tax losses and deductible temporary differences, including adjustments for prior years (10.1) (8.3) (0.6) (8.8) (30.6) (1.9) Income tax expense $ 32.1 $ 58.1 $ 62.0 A reconciliation of income taxes calculated at the statutory income tax rate to the income tax expense at the effective tax rate is as follows: Year ended December 31 2021 2022 2023 Earnings before income taxes $ 136.0 $ 203.6 $ 306.6 Income tax expense at Celestica’s statutory income tax rate of 26.5% (2021 to 2023) $ 36.1 $ 54.0 $ 81.3 Impact on income taxes from: Foreign income taxed at different rates (16.9) (34.1) (51.4) Foreign exchange 1.2 5.7 4.0 Other, including non-taxable/non-deductible items and changes to net provisions related to tax uncertainties (i) (ii) 8.2 2.9 19.1 Change in tax rates (iii) (7.6) 0.1 — Change in unrecognized tax losses and deductible temporary differences 11.1 29.5 9.0 Income tax expense $ 32.1 $ 58.1 $ 62.0 (i) These line items in the two tables above include: (i) for 2023, a $11.3 tax expense arising from both the repatriation of undistributed earnings and taxable temporary differences associated with the anticipated repatriation of undistributed earnings from certain of our Asian subsidiaries; (ii) for 2022, a $3.3 tax expense related to taxable temporary differences associated with the then-anticipated repatriation of undistributed earnings (Repatriation Expense) from certain of our Chinese subsidiaries ($3.3 of which was paid in 2023 and realized as a current tax expense in 2023); and (iii) for 2021, a $6.0 Repatriation Expense related to certain of our Chinese subsidiaries ($2.5 of which was paid in 2023 and realized as a current tax expense in 2023 and $2.5 of which was paid in 2022 and realized as current tax expense in 2022). (ii) These line items for 2021, 2022 and 2023 in the two tables above include tax benefits related to return-to-provision adjustments for changes in estimates related to prior years based on changes in facts or circumstances (RTP Adjustments), and net adjustments for tax liabilities and uncertainties (discussed below). (iii) This line item for 2021 in the two tables above relates to a deferred tax recovery recorded in connection with the revaluation of certain temporary differences using the future effective tax rate of our Thailand subsidiary in connection with the then-forthcoming transition from a 100% income tax exemption to a 50% exemption in 2022 under an applicable tax incentive (Revaluation Impact). See the discussion of tax incentives below. Our effective income tax rate can vary significantly period-to-period for various reasons, including as a result of the mix and volume of business in various tax jurisdictions within the Americas, Europe and Asia, in jurisdictions with tax holidays and tax incentives, and in jurisdictions for which no net deferred income tax assets have been recognized because management believes it is not probable that future taxable profit will be available against which tax losses and deductible temporary differences could be utilized. Our effective income tax rate can also vary due to the impact of restructuring charges, foreign exchange fluctuations, operating losses, cash repatriations, and changes in our provisions related to tax uncertainties. During 2023, we recorded net income tax expense of $62.0, which included a $11.3 tax expense arising from both the repatriation of undistributed earnings and taxable temporary differences associated with the anticipated repatriation of undistributed earnings from certain of our Asian subsidiaries, and a $4.8 tax expense for tax uncertainties relating to one of our Asian subsidiaries, partially offset by the favorable impact of $5.5 in reversals of previously-recorded tax uncertainties in another of our Asian subsidiaries. Taxable foreign exchange impacts were not significant in 2023. Withholding tax of $5.8 associated with the repatriation of undistributed earnings from certain of our Asian subsidiaries in 2023 (realized as current tax) was fully offset by the reversal of previously accrued deferred taxes from the then-anticipated repatriation of such undistributed earnings. During 2022, we recorded net income tax expense of $58.1, which was favorably impacted by $4.9 in reversals of tax uncertainties in one of our Asian subsidiaries, which was more than offset by an adverse $3.5 taxable foreign exchange impact arising primarily from the weakening of the Chinese renminbi relative to the U.S. dollar, our functional currency, and a $3.3 Repatriation Expense related to certain of our Chinese subsidiaries . W ithholding tax of $10.3 associated with the repatriation of undistributed earnings from certain of our Chinese subsidiaries in 2022 (realized as current tax) was fully offset by the reversal of previously accrued deferred taxes from the then-anticipated repatriation of such undistributed earnings. During 2021, we recorded net income tax expense of $32.1, which included a $7.6 Revaluation Impact (defined in footnote (iii) above), largely offset by a $6.0 Repatriation Expense related to certain of our Chinese subsidiaries . Taxable foreign exchange impacts were not significant in 2021 . Changes in deferred tax assets and liabilities for the periods indicated are as follows: Unrealized Accounting Pensions and Tax Property, Other Reclassification between deferred tax assets and deferred tax liabilities (i) Total Deferred tax assets: Balance — January 1, 2022 $ — $ 17.7 $ 2.8 $ 69.2 $ — $ 1.2 $ (43.2) $ 47.7 Credited (charged) to net earnings — 13.7 2.8 (10.7) — 17.4 — 23.2 Credited directly to equity — — 4.4 0.4 — (5.1) — (0.3) Effects of foreign exchange — (0.5) — (1.9) — (0.2) — (2.6) Other — — — — — — 0.9 0.9 Balance — December 31, 2022 — 30.9 10.0 57.0 — 13.3 (42.3) 68.9 Credited (charged) to net earnings — (1.4) (2.4) (8.3) — 8.1 — (4.0) Credited (charged) directly to equity — — (0.1) — — 0.7 — 0.6 Effects of foreign exchange — (0.6) (0.1) 0.2 — 1.0 — 0.5 Other — (0.1) — — — — (3.4) (3.5) Balance — December 31, 2023 $ — $ 28.8 $ 7.4 $ 48.9 $ — $ 23.1 $ (45.7) $ 62.5 Deferred tax liabilities: Balance — January 1, 2022 $ 27.2 $ — $ — $ — $ 76.2 $ — $ (43.2) $ 60.2 Charged (credited) to net earnings (5.0) — — — (2.4) — — (7.4) Effects of foreign exchange (1.7) — — — (0.7) — — (2.4) Other — — — — 0.4 — 0.9 1.3 Balance — December 31, 2022 20.5 — — — 73.5 — (42.3) 51.7 Charged (credited) to net earnings 2.1 — — — (8.0) — — (5.9) Effects of foreign exchange 0.5 — — — (0.7) — — (0.2) Other — — — — — — (3.4) (3.4) Balance — December 31, 2023 $ 23.1 $ — $ — $ — $ 64.8 $ — $ (45.7) $ 42.2 (i) This reclassification reflects the offsetting of deferred tax assets and deferred tax liabilities to the extent they relate to the same taxing authorities and there is a legally enforceable right to such offset. The amount of deductible temporary differences and unused tax losses for which no deferred tax assets have been recognized at December 31, 2023 was $1,591.5 (December 31, 2022 — $1,688.9). We have not recognized deferred tax assets in respect of these items because, based on management’s estimates, it is not probable that future taxable profit will be available against which we can utilize the benefits. A portion of our unused tax losses expires between 2024 and 2043 and a portion can be carried forward indefinitely. Deductible temporary differences do not expire under current applicable tax legislation. At December 31, 2023, the aggregate amount of temporary differences associated with investments in subsidiaries for which we have not recognized deferred tax liabilities is $28.4 (December 31, 2022 — $64.9). At December 31, 2023, we recorded aggregate net deferred tax assets of $0.7 for one of our Asian subsidiaries which realized losses in 2021 — 2023. At December 31, 2022, we recorded aggregate net deferred tax assets of $5.0 for one of our Asian subsidiaries and for our U.S. group of subsidiaries, each of which realized losses in 2021 and 2022. At December 31, 2021, we recorded aggregate net deferred tax assets of $4.9 for one of our Asian subsidiaries which realized losses in 2021, and for our U.S. group of subsidiaries which realized losses in 2019 — 2021. We recognize deferred tax assets based on our estimate of the future taxable profit we expect these subsidiaries to achieve based on our review of financial projections. Certain countries in which we do business grant tax incentives to attract or retain our business. Our tax expense could increase significantly if certain tax incentives from which we benefit are retracted, or are rendered ineffective as a result of Pillar Two tax increases. A retraction could occur if we fail to satisfy the conditions on which these tax incentives are based, or if they are not renewed or replaced upon expiration. Our tax expense could also increase if tax rates applicable to us in such jurisdictions are otherwise increased, or due to changes in legislation or administrative practices. Changes in our outlook in any particular country could impact our ability to meet the required conditions. Our tax incentives currently consist of tax exemptions for the profits of our Thailand and Laos subsidiaries. These tax exemptions are subject to certain conditions with which we intend to comply, and expire as described below. We have four income tax incentives in Thailand. One of these incentives allows for a 50% income tax exemption until its expiration in 2027. The second incentive allows for a 100% income tax and distribution tax exemption for eight years, and expires in 2028. The third incentive allows for a 100% income tax and distribution tax exemption for six years, and expires in 2028. The fourth incentive, a new incentive obtained in 2023 and expected to commence in 2024, allows for a 100% income tax and distribution tax exemption for six years. Our tax incentive in Laos allows for a 100% income tax exemption until 2025, and a reduced income tax rate of 8% thereafter. Upon full expiry of each of the incentives, taxable profits associated with such incentives become fully taxable. The aggregate tax benefit arising from all of our tax incentives was approximately $40 for 2023 (2022 — $21; 2021 — $15). See note 24 for contingencies regarding a Romanian income and value-added tax matter. |
Capital Disclosures
Capital Disclosures | 12 Months Ended |
Dec. 31, 2023 | |
Corporate information and statement of IFRS compliance [abstract] | |
Capital Disclosures | CAPITAL DISCLOSURES: Our main objectives in managing our capital resources are to ensure liquidity and to have funds available for working capital or other investments we deem required to grow our business. Our capital resources consist of cash provided by operating activities, access to the Revolver, uncommitted intraday and overnight bank overdraft facilities, an uncommitted A/R sales program and SFPs, and our ability to issue debt or equity securities. We regularly review our borrowing capacity and make adjustments, as permitted, for changes in economic conditions and changes in our requirements. See note 11 for a discussion of the terms of the Credit Facility, and amounts outstanding thereunder at December 31, 2023. We had $589.5 available as of December 31, 2023 under the Revolver for future borrowings. As of December 31, 2023, we also had access (in each case on an uncommitted basis) to $198.5 in intraday and overnight bank overdraft facilities, our $450.0 A/R sales program and the SFPs to provide short-term liquidity. At December 31, 2023, we sold nil of A/R under our A/R sales program and $18.6 under the SFPs (see note 4). The timing and the amounts we borrow and repay under these facilities can vary significantly from month-to-month depending on our working capital and other cash requirements. We have repurchased and canceled SVS under NCIBs in recent years. In addition, we purchase SVS from time-to-time in the open market through a broker to satisfy delivery obligations under our SBC plans. See note 12 for details. We have not distributed, nor do we have any current plan to distribute, any dividends to our shareholders. |
Weighted Average Number of Shar
Weighted Average Number of Shares Diluted | 12 Months Ended |
Dec. 31, 2023 | |
Earnings per share [abstract] | |
Weighted Average Number of Shares Diluted | WEIGHTED AVERAGE NUMBER OF SHARES DILUTED: (in millions) 2021 2022 2023 Weighted average number of shares (basic) 126.7 123.5 120.1 Dilutive effect of outstanding awards under SBC plans — 0.1 0.2 Weighted average number of shares (diluted) 126.7 123.6 120.3 For 2023, we excluded nil stock options from the diluted weighted average number of shares calculation. For 2022 and 2021, we excluded 0.4 million and 0.3 million stock options, respectively, from the diluted weighted average number of shares calculation as they were out-of-the-money. References to shares in this note 22 are to our SVS and MVS taken collectively through the closing date of the August Secondary Offering, after which there were no MVS outstanding. |
COVID-19 Government Subsidies
COVID-19 Government Subsidies | 12 Months Ended |
Dec. 31, 2023 | |
Government Subsidies [Abstract] | |
COVID-19 Government Subsidies | COVID-19 GOVERNMENT SUBSIDIES: We qualified for COVID-19-related subsidies (COVID Subsidies) during 2021 from various government authorities. In 2021, we recorded an aggregate of approximately $11 in COVID Subsidies, which we recognized as a reduction of approximately $8 to the related expenses in cost of sales and approximately $3 to the related expenses in SG&A, on our consolidated statement of operations. In 2022 and 2023, we did not apply for, and did not receive, any COVID Subsidies. |
Commitments, Contingencies and
Commitments, Contingencies and Guarantees | 12 Months Ended |
Dec. 31, 2023 | |
Other Provisions, Contingent Liabilities And Contingent Assets [Abstract] | |
Commitments, Contingencies and Guarantees | COMMITMENTS, CONTINGENCIES AND GUARANTEES: At December 31, 2023, we had commitments (not recognized as liabilities as of such date) under IT support agreements that require future minimum payments as follows: 2024 $ 22.6 2025 18.3 2026 12.8 2027 11.4 2028 9.7 Thereafter 15.3 Total future minimum payments $ 90.1 As at December 31, 2023, management had approved $125.2 for capital expenditures, primarily to increase manufacturing space at certain facilities and for machinery and equipment to support new custo mer programs, and issued $22.9 of such amount in purchase orders to third-party vendors. We also have a contractual commitment with a supplier to purchas e $8 of comp onent parts in 2024. We have contingent liabilities in the form of L/Cs , letters of guarantee and surety bonds (collectively, Guarantees) which we have provided to various third parties. The Guarantees cover various payme nts, including customs and excise taxes, utility commitments and certain bank guarantees. At December 31, 2023, we had $27.0 of Guarantees (December 31, 2022 — $41.8), including $10.5 (December 31, 2022 — $18.0) of L/Cs outstanding under our Revolver. We are required to make scheduled quarterly principal amortization payments under the Incremental Term Loan, certain annual mandatory prepayments under the Credit Facility under specified circumstances, payments of outstanding amounts under the Credit Facility at maturity (see note 11), contractual payments under our lease obligations (described in note 11 and below), and contributions to our pension and non-pension post-employment benefit plans (see note 18). We are also required to pay interest, fees and charges under our Credit Facility, A/R sales program and SFPs, interest rate swap agreements (the amounts thereunder are determined based on market rates at the time the interest payments are due) and the TRS Agreement, and may be required to make other payments under the TRS Agreement (see notes 2( o ), 4, 11 and 20). See note 20 for our obligations under the foreign exchange contracts we held at December 31, 2023. Additional real property lease commitments: Upon commencement of the Purchaser Lease (defined in note 15(b)), currently scheduled for June 2024, our estimated annual basic rent payments will be approximately $2.1 million Canadian dollars for each of the first five years of the lease, and approximately $2.2 million Canadian dollars for each of the remaining five years of the lease . The rental payments that will be due under the Purchaser Lease were not recognized as liabilities as of December 31, 2023, because the lease had not yet commenced. In Q3 2023, we subleased a portion of the space under the Purchaser Lease (see note 15(b)). We are committed to lease certain space located in Richardson, Texas (Texas Lease) from April 2027 to March 2032. The rental amounts for Texas Lease ($0.9 in 2027; $1.3 in 2028 and $4.3 thereafter) were not recognized as liabilities as of December 31, 2023 because the lease had not yet commenced. Indemnifications: We provide routine indemnifications, the terms of which range in duration and scope, and often are not explicitly defined, including for third-party intellectual property infringement, certain negligence claims, and for our directors and officers. We have also provided indemnifications in connection with the sale of certain assets and each of the Secondary Offerings. The maximum potential liability from these indemnifications cannot be reasonably estimated. In some cases, we have recourse against other parties or insurance to mitigate our risk of loss from these indemnifications. Historically, we have not made significant payments relating to these types of indemnifications. Litigation: In the normal course of our operations, we may be subject to lawsuits, investigations and other claims, including environmental, labor, product, customer disputes, and other matters. Management believes that adequate provisions have been recorded where required. Although it is not always possible to estimate the extent of potential costs, if any, management believes that the ultimate resolution of all such pending matters will not have a material adverse impact on our financial performance, financial position or liquidity. Income taxes and other matters: We are subject to tax audits in various jurisdictions. Reviews by tax authorities generally focus on, but are not limited to, the validity of our inter-company transactions, including financing and transfer pricing policies which may involve subjective areas of taxation and significant judgment. The successful pursuit of assertions made by any government authority, including tax authorities, could result in our owing significant amounts of tax or other reimbursements, interest and possibly penalties. We believe we adequately accrue for any probable potential adverse ruling. However, there can be no assurance as to the final resolution of any claims and any resulting proceedings. If any claims and any ensuing proceedings are determined adversely to us, the amounts we may be required to pay could be material, and in excess of amounts accrued. In 2021, the Romanian tax authorities issued a final assessment in the aggregate amount of approximately 31 million Romanian leu (approximately $7 at period-end exchange rates), for additional income and value-added taxes for one of our Romanian subsidiaries for the 2014 to 2018 tax years. In order to advance our case to the appeals phase and reduce or eliminate potential interest and penalties, we paid the Romanian tax authorities the full amount assessed in 2021 (without agreement to all or any portion of such assessment). We believe that our originally-filed tax return positions are in compliance with applicable Romanian tax laws and regulations, and intend to vigorously defend our position through all necessary appeals or other judicial processes. |
Segment and Geographic Informat
Segment and Geographic Information | 12 Months Ended |
Dec. 31, 2023 | |
Operating Segments [Abstract] | |
Segment and Geographic Information | SEGMENT AND GEOGRAPHIC INFORMATION: Operating segments are defined as components of an enterprise that engage in business activities from which they may earn revenue and incur expenses; for which discrete financial information is available; and whose operating results are regularly reviewed by the chief operating decision maker in deciding how to allocate resources and to assess performance. No operating segments have been aggregated to determine our reportable segments. We have two operating and reportable segments: ATS and CCS. Our ATS segment consists of our ATS end market, and is comprised of our Aerospace and Defense (A&D), Industrial, HealthTech, and Capital Equipment businesses. Our CCS segment consists of our Communications and Enterprise (servers and storage) end markets. Factors considered in determining the two reportable segments include the nature of applicable business activities, management structure, market strategy and margin profiles. Products and services in our ATS segment are extensive and are often more regulated than in our CCS segment, and can include the following: government-certified and highly-specialized manufacturing, electronic and enclosure-related services for A&D customers; high-precision semiconductor and display equipment and integrated subsystems; a wide range of industrial automation, controls, test and measurement devices; engineering-focused engagements, including full product development in the areas of telematics, human machine interface, Internet-of-Things and embedded systems; advanced solutions for surgical instruments, diagnostic imaging and patient monitoring; and efficiency products to help manage and monitor the energy and power industries. Our ATS segment businesses typically have higher margin profiles and margin volatility, higher working capital requirements, and longer product life cycles than the traditional businesses in our CCS segment. Products and services in our CCS segment consist predominantly of enterprise-level data communications and information processing infrastructure products, and can include routers, switches, data center interconnects, edge solutions, and servers and storage-related products used by a wide range of businesses and cloud-based and other service providers to manage digital connectivity, commerce and social media applications. Our traditional CCS segment businesses typically have lower margin profiles, lower working capital requirements, and higher volumes than the businesses in our ATS segment. Within our CCS segment, however, our Hardware Platform Solutions (HPS) business (which includes firmware/software enablement across all primary IT infrastructure data center technologies, open source software offerings that complement our hardware platforms, and aftermarket services including IT asset disposition), typically has a higher margin profile than our traditional CCS businesses, but also requires specific investments (including research and development (R&D)) and higher working capital. Our CCS segment generally experiences a high degree of volatility in terms of revenue and product/service mix and as a result, our CCS segment margin can fluctuate from period to period . Segment performance is evaluated based on segment revenue, segment income and segment margin (segment income as a percentage of segment revenue). Revenue is attributed to the segment in which the product is manufactured or the service is performed. Segment income is defined as a segment’s net revenue less its cost of sales and its allocable portion of selling, general and administrative expenses and R&D expenses (collectively, Segment Costs). Identifiable Segment Costs are allocated directly to the applicable segment while other Segment Costs, including indirect costs and certain corporate charges, are allocated to our segments based on an analysis of the relative usage or benefit derived by each segment from such costs. Segment income excludes finance costs (defined in note 16); employee SBC expense; commencing in 2023, TRS FVAs (defined in note 2( o )); amortization of intangible assets (excluding computer software); and other charges, net of recoveries (the components of which are described in note 15), as these costs and charges/recoveries are managed and reviewed by our Chief Executive Officer at the company level. Our segments do not record inter-segment revenue. Although segment income and segment margin are used to evaluate the performance of our segments, we may incur operating costs in one segment that may also benefit the other segment. Our accounting policies for segment reporting are the same as those applied to the Company as a whole. Information regarding each reportable segment for the periods indicated is set forth below: Revenue by segment: Year ended December 31 2021 2022 2023 % of Total % of Total % of Total ATS $ 2,315.1 41% $ 2,979.0 41% $ 3,319.8 42% CCS 3,319.6 59% 4,271.0 59% 4,641.2 58% Communications revenue as a % of total revenue 40 % 40 % 33 % Enterprise revenue as a % of total revenue 19 % 19 % 25 % Total $ 5,634.7 $ 7,250.0 $ 7,961.0 Segment income, segment margin, and reconciliation of segment income to IFRS earnings before income taxes: Year ended December 31 2021 2022 2023 Segment Margin Segment Margin Segment Margin ATS segment income and margin $ 105.0 4.5 % $ 140.9 4.7 % $ 156.1 4.7 % CCS segment income and margin 128.9 3.9 % 217.1 5.1 % 289.1 6.2 % Total segment income 233.9 358.0 445.2 Reconciling items: Finance costs 31.7 59.7 76.6 Employee SBC expense (note 12) 33.4 51.0 55.6 TRS FVAs (gains) (note 12) — — (45.6) Amortization of intangible assets (excluding computer software) 22.5 37.0 36.8 Other charges, net of recoveries (note 15) 10.3 6.7 15.2 IFRS earnings before income taxes $ 136.0 $ 203.6 $ 306.6 The following table details our external revenue allocated by manufacturing location among countries that generated 10% or more of total revenue for the years indicated: Year ended December 31 2021 2022 2023 Thailand 36 % 44 % 46 % China 16 % 11 % * Malaysia 13 % 12 % 11 % Canada * * * * Less than 10%. The following table details our allocation of PP&E and ROU assets among countries that represented 10% or more of total PP&E and ROU assets for the years indicated: December 31 2022 2023 Thailand 18 % 25 % United States 25 % 24 % Canada * * * Less than 10%. The following table details our allocation of intangible assets and goodwill among countries that represented 10% or more of total intangible assets and goodwill for the years indicated: December 31 2022 2023 United States 48 % 48 % Singapore 42 % 41 % Canada * * * Less than 10%. Customers: One customer (in our CCS segment) individually represented 10% or more of total revenue in 2023 (22%). Two customers (each in our CCS segment) individually represented 10% or more of total revenue in 2022 (11% for each customer). No individual customer represented 10% or more of total revenue in 2021. At December 31, 2023, we had two customers that individually represented 10% or more of total A/R (one in our CCS segment and one in our ATS segment) |
Fire Event
Fire Event | 12 Months Ended |
Dec. 31, 2023 | |
Unusual Or Extraordinary Event [Abstract] | |
Fire Event | FIRE EVENT: In June 2022, a fire occurred at our Batam, Indonesia facility. The fire destroyed inventories and damaged a building and equipment located at the site. Our manufacturing operations at the site were briefly paused, but resumed in June 2022. In 2022, we wrote down inventories destroyed (approximately $94) and a building and equipment damaged (aggregate of $1) by the fire. We expect to fully recover our tangible losses pursuant to the terms and conditions of our insurance policies. In 2022 and 2023, we recovered $31 and $23 of our inventory losses through insurance proceeds, respectively. As of December 31, 2023, we recorded an estimated receivable of approximately $41 related to remaining anticipated insurance proceeds in other current assets on our consolidated balance sheet. The write-downs and the offsetting insurance receivable (in equivalent amounts) were each recorded in other charges and other recoveries, respectively, in 2022, resulting in no net impact to 2022 net earnings. See note 15. We determined that this event did not constitute an impairment review triggering event for the applicable CGU, and no impairments to our intangibles or goodwill were recorded in connection therewith in 2022 or 2023. |
Basis of Preparation and Mate_2
Basis of Preparation and Material Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2023 | |
Disclosure Of Significant Accounting Policies [Abstract] | |
Statement of compliance | Statement of compliance: The consolidated financial statements have been prepared in accordance with International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board (IASB). The consolidated financial statements were authorized for issuance by our Board of Directors (Board) on March 8, 2024 . |
Functional and presentation currency | Functional and presentation currency: The consolidated financial statements are presented in United States (U.S.) dollars, which is also Celestica's functional currency. Unless otherwise noted, all financial information is presented in millions of U.S. dollars (except percentages and per share amounts). |
Use of estimates and judgments | Use of estimates and judgments: The preparation of financial statements in conformity with IFRS requires management to make judgments, estimates and assumptions that affect the application of accounting policies, the reported amounts of assets, liabilities, revenue, and expenses, and related disclosures with respect to contingent assets and liabilities. We base our judgments, estimates and assumptions on current facts (including, in recent periods, the prolonged impact of global supply chain constraints), historical experience and various other factors that we believe are reasonable under the circumstances. The economic environment also impacts certain estimates and discount rates necessary to prepare our consolidated financial statements, including significant estimates and discount rates applicable to the determination of the recoverable amounts used in the impairment testing of our non-financial assets. Our assessment of these factors forms the basis for our judgments on the carrying values of our assets and liabilities, and the accrual of our costs and expenses. Actual results could differ materially from our estimates and assumptions. We review our estimates and underlying assumptions on an ongoing basis and make revisions as determined necessary by management. Revisions are recognized in the period in which the estimates are revised and may also impact future periods. Our review of the estimates, judgments and assumptions used in the preparation of our consolidated financial statements included those relating to, among others: our determination of the timing of revenue recognition, the determination of whether indicators of impairment existed for our assets and cash generating units (CGUs*), our measurement of deferred tax assets and liabilities, our estimated inventory write-downs and expected credit losses, customer creditworthiness and the determination of the fair value of assets acquired and liabilities assumed in connection with a business combination. Any revisions to estimates, judgments or assumptions may result in, among other things, write-downs, accelerated depreciation or amortization, or impairments of our assets or CGUs, and/or adjustments to the carrying amount of our accounts receivable (A/R) and/or inventories, or to the valuation of our deferred tax assets, any of which could have a material impact on our financial performance and financial condition. *CGUs are the smallest identifiable group of assets that cannot be tested individually and generate cash inflows that are largely independent of those of other assets or groups of assets, and can be comprised of a single site, a group of sites, or a line of business. Key sources of estimation uncertainty and judgment: We have applied significant estimates, judgments and assumptions in the following areas which we believe could have a significant impact on our reported results and financial position: our determination of the timing of revenue recognition; whether events or changes in circumstances are indicators that an impairment review of our assets or CGUs should be conducted; the measurement of our CGUs' recoverable amounts, which includes estimating future growth, profitability, and discount and terminal growth rates; and the allocation of the purchase price and other valuations related to our business acquisition. We describe our use of judgment and estimation uncertainties in greater detail in the accounting policies described under “Material Accounting Policies” below. |
Recently issued accounting standards and amendments | Recently issued accounting standards and amendments: Interest R ate Benchmark Reform (Amendments to IFRS 9 (Financial Instruments) , IAS 39 (Financial Instruments: Recognition and Measurement), IFRS 4 (Insurance Contracts), IFRS 7 (Financial Instruments: Disclosures) and IFRS 16 (Leases)): In August 2020, the IASB issued Interest Rate Benchmark Reform-Phase 2 (Phase 2 IBOR Reform), which amends IFRS 9, IAS 39, IFRS 4, IFRS 7, and IFRS 16. Phase 2 IBOR Reform focuses on the effects on financial statements when a company replaces a previous interest rate benchmark with an alternative benchmark rate as a result of Interbank Offered Rates (IBOR) reform. We adopted Phase 2 IBOR Reform as of January 1, 2021. The adoption of Phase 2 IBOR Reform had no material impact on our consolidated financial statements. Also see note 20. Making Materiality Judgements (Amendments to IAS 1 and IFRS Practice Statement 2) In February 2021, the IASB issued amendments to IAS 1 and IFRS Practice Statement 2 “ Making Materiality Judgements, ” which provide guidance and examples to help entities apply materiality judgements to accounting policy disclosures. The amendments aim to help entities provide accounting policy disclosures that are more useful by replacing the requirement for entities to disclose their “significant” accounting policies with a requirement to disclose their material accounting policies and adding guidance on how entities are to apply the concept of materiality in making decisions about accounting policy disclosures. These amendments are applicable for annual periods beginning on or after January 1, 2023. These amendments, which we adopted as of such date, are reflected in, and had no material impact on our annual consolidated financial statements. Definition of accounting estimates (Amendments to IAS 8) In February 2021, the IASB issued Definition of accounting estimates (Amendments to IAS 8) to clarify the distinction between accounting policies and accounting estimates. The amendments are effective for reporting periods beginning on or after January 1, 2023. We adopted this standard as of January 1, 2023. The adoption of this standard had no material impact on our consolidated financial statements. Deferred tax related to assets and liabilities arising from a single transaction (Amendments to IAS 12 Income Taxes) In May 2021, the IASB issued Deferred tax related to assets and liabilities arising from a single transaction (Amendments to IAS 12 Income Taxes) to clarify the accounting treatment for deferred taxes on transactions such as leases and decommissioning obligations. The amendments are effective for reporting periods beginning on or after January 1, 2023. We adopted this standard as of January 1, 2023. The adoption of this standard had no material impact on our consolidated financial statements. IFRS 17 Insurance Contracts In May 2017, the IASB issued IFRS 17 Insurance Contracts . IFRS 17 replaces IFRS 4 and sets out principles for the recognition, measurement, presentation and disclosure of insurance contracts within the scope of IFRS 17. This standard is effective for reporting periods beginning on or after January 1, 2023. We adopted this standard as of January 1, 2023. The adoption of this standard had no material impact on our consolidated financial statements. International Tax Reform — Pillar Two Model Rules (Amendments to IAS 12) In May 2023, the IASB issued amendments to IAS 12 to give entities temporary mandatory relief from accounting for deferred taxes arising from the Organization for Economic Co-operation and Development’s international tax reform. The amendments became effective upon issuance, except for certain disclosure requirements which are effective for annual reporting periods beginning on or after January 1, 2023. We adopted the required amendments in May 2023, and have applied the mandatory temporary exception to recognizing and disclosing information related to Pillar Two income taxes. Pillar Two legislation has been enacted or substantively enacted in certain jurisdictions where we have operations, while legislation in other relevant jurisdictions has yet to be finalized. Based on currently enacted legislation, we anticipate that Pillar Two legislation will impact our reporting periods commencing January 1, 2025, however, enactment of Pillar Two legislation in other relevant jurisdictions may result in applicability for our reporting periods commencing January 1, 2024. We currently estimate that if such legislation becomes applicable for reporting periods commencing January 1, 2024, we would have incremental income taxes of approximately $6 in the first quarter of 2024. We will continue to monitor the impact of Pillar Two income taxes as the Pillar Two Model Rules become enacted in the jurisdictions where we have operations. Classification of liabilities as current or non-current (Amendments to IAS 1) In January 2020, the IASB issued Classification of liabilities as current or non-current (Amendments to IAS 1) to clarify how to classify debt and other liabilities as current or non-current. The amendments are effective for reporting periods beginning on or after January 1, 2024. We adopted this standard as of January 1, 2024. We do not anticipate that the adoption of this standard will have a material impact on our consolidated financial statements. |
Basis of measurement | Basis of measurement: These consolidated financial statements have been prepared primarily on the historical cost basis. Other measurement bases, where used, are described in the applicable notes. |
Basis of consolidation | Basis of consolidation: These consolidated financial statements include our direct and indirect subsidiaries, all of which are wholly-owned. Any subsidiaries that are formed or acquired during the year are consolidated from their respective dates of formation or acquisition. Inter-company transactions and balances are eliminated on consolidation. |
Business combinations | Business combinations: We use the acquisition method to account for any business combinations. All identifiable assets and liabilities are recorded at fair value on our consolidated balance sheet as of the acquisition date. Any goodwill that arises from business combinations is tested annually for impairment (see note 2 (j) ). Potential obligations for contingent consideration and other contingencies are also recorded at fair value on our consolidated balance sheet as of the acquisition date. We record subsequent changes in the fair value of such potential obligations from the date of acquisition to the settlement date in our consolidated statement of operations. We expense integration costs (for the establishment of business processes, infrastructure and information systems for acquired operations) and acquisition-related consulting and transaction costs as incurred in our consolidated statement of operations. |
Foreign currency translation | Foreign currency translation: The majority of our subsidiaries have a U.S. dollar functional currency, which represents the currency of the primary economic environment in which they operate. For these subsidiaries, we translate: (i) monetary assets and liabilities denominated in foreign currencies into U.S. dollars at the period-end exchange rates; (ii) non-monetary assets and liabilities denominated in foreign currencies into U.S. dollars at historic rates; and (iii) revenue and expenses into U.S. dollars at the average exchange rates prevailing during the month of the transaction. Exchange gains and losses also arise on the settlement of foreign-currency denominated transactions. We recognize foreign currency differences arising on translation in our consolidated statement of operations. Upon consolidation, for our subsidiaries with a non-U.S. dollar functional currency, we translate assets and liabilities denominated in foreign currencies into U.S. dollars using the period-end exchange rates, and we translate revenue and expenses into U.S. dollars at the average exchange rates prevailing during the month of the transaction. We defer gains and losses arising from the translation of these operations in the foreign currency translation account included in accumulated other comprehensive income (loss) (OCI). For these subsidiaries, we translate foreign currency transactions into the relevant non-U.S. dollar functional currency using the exchange rate prevailing during the month of the transaction for revenues and expenses, and the exchange rate as at period end for the translation of these foreign currency denominated monetary assets and liabilities, and such gains and losses arising from these translations are recorded in the statement of operations in their non-U.S. dollar functional currency before translation into U.S. dollar for consolidation purposes. |
Cash and cash equivalents | Cash and cash equivalents: Cash and cash equivalents include cash on account and short-term investments with original maturities of three months or less. Cash and cash equivalents are classified as financial assets measured at fair value through profit or loss (see paragraph (o) below). These instruments are subject to an insignificant risk of change in fair value over their terms and, as a result, we carry cash and cash equivalents at cost. |
Inventories | Inventories: We procure inventory and manufacture products based on specific customer orders and forecasts, and value our inventory on a first-in, first-out basis at the lower of cost and net realizable value. The cost of our finished goods and work in progress includes direct materials, labor and overhead. We may require valuation adjustments if actual market conditions or demand for our products or services are less favorable than originally projected. The determination of net realizable value involves significant management judgment and estimation. When estimating the net realizable value of our inventory, we consider factors such as shrinkage, the aging of and future demand for the inventory, and contractual arrangements with customers. We attempt to utilize excess inventory in other products we manufacture or return such inventory to the relevant suppliers or customers. We use future sales volume forecasts to estimate excess inventory on-hand. A change to these assumptions may impact our inventory valuation and our gross margins. We adjust previous write-downs in our consolidated statement of operations in the period a change in estimate occurs. |
Property, plant and equipment (PP&E) | Property, plant and equipment (PP&E):We carry PP&E at cost less accumulated depreciation and accumulated impairment losses. Cost consists of expenditures directly attributable to the acquisition or construction of the asset, and costs directly attributable to bringing the asset to the condition necessary for its intended use. We capitalize the cost of an asset when the economic benefits associated with that asset are probable and when the cost can be measured reliably. We capitalize the costs of major renovations and we write-off the carrying amount of replaced assets. We expense all other maintenance and repair costs in our consolidated statement of operations as incurred. We estimate the useful life of PP&E based on the nature of the asset, historical experience, expected changes in technology, and the expected duration of related customer programs. When major components of an asset have a significantly different useful life than their primary asset, the components are accounted for and depreciated separately. We review our estimates of residual values, useful lives and the methods of depreciation annually at year-end and, if required, adjust them prospectively. We determine gains and losses on the disposal or retirement of PP&E by comparing the proceeds from disposal with the carrying amount of the asset and we recognize these gains and losses in our consolidated statement of operations in the period of disposal or retirement. Also, see note 2( j ). |
Leases | Leases: We are the lessee of land, buildings, and machinery and equipment. At the inception of a contract, we assess whether an arrangement is, or contains, a lease in accordance with IFRS 16. Where we determine there is a lease under IFRS 16, we recognize a right-of-use (ROU) asset (representing our right to use such leased asset) and a related lease obligation on the applicable lease commencement date. An ROU asset is first measured based on the initial amount of the related lease obligation, subject to certain adjustments, if any, and then subsequently measured at such cost less accumulated depreciation and accumulated impairment losses (see note 2( j |
Goodwill and intangible assets | Goodwill and intangible assets: Goodwill: We initially record goodwill related to business acquisitions on our consolidated balance sheet in the amount of the excess of the fair value of the aggregate consideration paid or payable (including the estimated fair value of any contingent consideration) over the fair value of the identifiable net assets acquired. In subsequent reporting periods, we measure goodwill at cost less accumulated impairment losses, if any. We do not amortize goodwill. For purposes of impairment testing, we allocate goodwill to the CGU, or group of CGUs, that we expect will benefit from the related acquisition. See note 2 (j) . Intangible assets: Intellectual property assets consist primarily of certain acquired non-patented intellectual property and process technology. Other intangible assets consist primarily of customer relationships and contract intangibles. Computer software |
Impairment of goodwill, intangible assets, PP&E, and ROU assets | Impairment of goodwill, intangible assets, PP&E, and ROU assets: We review the carrying amount of goodwill, intangible assets, PP&E, and ROU assets for impairment whenever events or changes in circumstances (triggering events) indicate that the carrying amount of such assets, or the related CGU or CGUs, may not be recoverable. If any such indication exists, we test the carrying amount of such assets or CGUs for impairment. In addition to an assessment of triggering events during the year, we conduct an annual impairment assessment of CGUs with goodwill in the fourth quarter of each year to correspond with our annual planning cycle (Annual Impairment Assessment). Judgment is required in the determination of: (i) our CGUs, which includes an assessment of whether the relevant asset, or group of assets, largely generates independent cash inflows, and an evaluation of how management monitors the business operations pertaining to such asset, or asset group; and (ii) whether events or changes in circumstances during the year are indicators that a review for impairment should be conducted. We recognize an impairment loss when the carrying amount of an asset, CGU or group of CGUs exceeds its recoverable amount. The recoverable amount of an asset, CGU or group of CGUs is measured as the greater of its expected value-in-use and its estimated fair value less costs of disposal. Determining the recoverable amount is subjective and requires management to exercise significant judgment in estimating future growth, profitability, discount and terminal growth rates, and in projecting future cash flows, among other factors. Determination of our expected value-in-use is based on a discounted cash flow analysis of the relevant asset, CGU or group of CGUs. Determining estimated fair value less costs of disposal requires valuations and use of appraisals. Future events and changing market conditions may impact our assumptions as to prices, costs or other factors that may result in changes to our estimates of future cash flows. Where applicable, we engage independent brokers to obtain market prices to estimate our real property and other asset values. We recognize impairment losses in our consolidated statement of operations. If it is determined that an impairment exists, we first allocate the impairment losses to the relevant CGU (or group of CGUs) to reduce the carrying amount of its (or their) goodwill, if any. If the goodwill is reduced to nil and the impairment losses have not been fully allocated, we then reduce the carrying amount of other assets in such CGU (or group of CGUs), generally on a pro-rata basis, until the impairment losses have been recognized in full. See notes 6, 7, and 8. We do not reverse impairment losses for goodwill in future periods. We reverse impairment losses for PP&E, ROU assets and intangible assets if the events or conditions that resulted in such losses in prior periods no longer exist or have decreased as a result of changes in circumstances. At each reporting date, we review for indicators that could change the estimates we used to determine the recoverable amount of the relevant assets. The amount of the reversal will be limited to the carrying amount that would have been determined, net of depreciation or amortization, had we recognized no impairment loss in prior periods. |
Provisions | Provisions: We recognize a provision for legal or constructive obligations arising from past events when the amount can be reliably estimated and it is probable that an outflow of resources will be required to settle an obligation. The nature and type of provisions vary and management judgment is required to determine the extent of an obligation and whether the outflow of resources is probable. At the end of each reporting period, we evaluate the appropriateness of the remaining balances. We may be required to adjust recorded amounts to reflect actual experience or changes in estimates for future periods. Restructuring: We incur restructuring charges relating to workforce reductions, site consolidations, and costs associated with businesses we are downsizing or exiting. Our restructuring charges include employee severance and benefit costs, consultant costs, gains, losses, accelerated depreciation or impairments related to owned sites and equipment we no longer use and which are available for sale, impairment of related intangible assets, and costs or impairments related to leased sites and equipment we no longer use. The recognition of restructuring charges requires management to make certain judgments and estimates regarding the nature, timing and amounts associated with our restructuring actions. Our assumptions include the timing of employee terminations, the measurement of termination costs, any anticipated sublease recoveries from exited sites, the timing of dispositions, and the estimated fair values less costs of disposal for assets we no longer use and which are available for sale. We develop detailed plans and record termination costs in the period that employees are informed of their termination. For owned sites and equipment that are no longer in use and are available for sale, we recognize an impairment loss based on their estimated fair value less costs of disposal, with estimated fair value based on market prices for similar assets. We may engage third parties to assist in the determination of the estimated fair values less costs of disposal for these assets. For leased sites that we intend to exit in connection with restructuring activities, we assess the recoverability of our ROU assets, and write down such assets (recorded as restructuring charges) if the carrying value exceeds any estimated sublease recoveries. To estimate future sublease recoveries, we may engage independent brokers to determine the estimated tenant rents we can expect to realize. At the end of each reporting period, we evaluate the appropriateness of our restructuring charges and balances. We may be required to adjust recorded amounts to reflect actual experience or changes in estimates for future periods. See note 15 (a) . Legal and other contingencies: In the normal course of our operations, we may be subject to lawsuits, investigations and other claims, including, but not limited to, environmental, labor, product, customer disputes, and other matters. The filing of a suit or formal assertion of a claim does not automatically trigger a requirement to record a provision. We record a provision for loss contingencies, including legal claims, based on management’s estimate of the probable outcome. Judgment is required when there is a range of possible outcomes. Management considers the degree of probability of the outcome and the ability to make a reasonable estimate of the loss. We may also use third party advisors in making our determination. The ultimate outcome, including the amount and timing of any payments required, may vary significantly from our original estimates. Potential material legal and other material contingent obligations that have not been recognized as provisions, as the outcome is remote or not probable, or the amount cannot be reliably estimated, are disclosed as contingent liabilities. See note 24. Warranty: We offer product and service warranties to our customers. We record a provision for future warranty costs based on management’s estimate of probable claims under these warranties. In determining the amount of the provision, we consider several factors including the terms of the warranty (which vary by customer, product or service), the current volume of products sold or services rendered during the warranty period, and historical warranty information. We review and adjust these estimates as necessary to reflect our experience and new information. The amount and aging of our provision will vary depending on various factors including the length of the warranty offered, the remaining life of the warranty and the extent and timing of warranty claims. We classify the portion of our warranty provision for which payment is expected in the next 12 months as current, and the remainder as non-current. |
Employee benefits | Employee benefits: Pension and non-pension post-employment benefits: We classify pension and non-pension post-employment benefits as either defined contribution plans or defined benefit plans. Under defined contribution plans, our obligation is to make a fixed contribution to a separate entity. The related investment risk is borne by the employee. We recognize our obligations to make contributions to defined contribution plans as an employee benefit expense in our consolidated statement of operations in the period the employee services are rendered. Under defined benefit plans, our obligation is to provide an agreed-upon benefit to specified plan participants. We remain exposed to both actuarial and investment risks with respect to defined benefit plans. Our obligation is actuarially determined using the projected unit credit method, based on service and management’s estimates. Actuarial valuations require management to make judgments and estimates relating to salary escalation, compensation levels at the time of retirement, retirement ages, the discount rate used in measuring the net interest on the net defined benefit asset or liability, and expected healthcare costs (as applicable). These actuarial assumptions could change from period-to-period and actual results could differ materially from the estimates originally made by management. We evaluate our assumptions on a regular basis, taking into consideration current market conditions and historical data. Market-driven changes may affect the actual rate of return on plan assets compared to our assumptions, as well as our discount rates and other variables which could cause actual results to differ materially from our estimates. Changes in assumptions could impact our defined benefit pension plan valuations and our future defined benefit pension expense and required funding. Our obligation for each defined benefit plan consists of the present value of the defined benefit obligation less the fair value of plan assets, and is presented on a net basis on our consolidated balance sheet. When the actuarial calculation results in a benefit, the asset we recognize is restricted to the present value of economic benefits available in the form of future refunds from the plan or reductions in future contributions to the plan. To calculate the present value of economic benefits, we also consider any minimum funding requirements that apply to the plan. An economic benefit is available if it is realizable during the life of the plan, or on settlement of the plan liabilities. We recognize past service costs or credits arising from plan amendments, whether vested or unvested, immediately in our consolidated statement of operations. We determine the net interest expense (income) on the net defined benefit liability (asset) for each year by applying the discount rate used to measure the defined benefit obligation at the beginning of the year to the net defined benefit liability (asset) position, taking into account any changes in the net defined benefit liability (asset) during the year as a result of contributions and benefit payments. Net interest expense and other expenses related to defined benefit plans are recognized in our consolidated statement of operations. The difference between the interest income on plan assets and the actual net return on plan assets is included in the re-measurement of the net defined benefit liability (asset). We recognize actuarial gains and losses on plan assets or obligations, as well as any year-over-year change in the impairment of the balance sheet position in OCI and we reclassify the amounts to deficit. Curtailment gains or losses may arise from significant changes to a plan. We record curtailment gains or losses in our consolidated statement of operations when the curtailment occurs. To mitigate the actuarial and investment risks of our defined benefit pension plans, we from time to time purchase annuities (using existing plan assets) from third party insurance companies for certain, or all, plan participants. The purchase of annuities by the pension plan substantially hedges the financial risks associated with the related pension obligations. Where the annuities are purchased on behalf of, and held by the pension plan, the relevant employer retains the ultimate responsibility for the payment of benefits to plan participants, and we retain the pension assets and liabilities on our consolidated balance sheet. Our annuity purchases have resulted (and future annuity purchases may result) in losses, due to a reduction in the value of the plan assets relative to plan obligations as of the date of the annuity purchase. We record these non-cash losses in OCI on our consolidated balance sheet and simultaneously reclassify such amounts to deficit in the same period. Alternatively, where we purchase annuities from insurance companies on behalf of applicable plan participants with the intention of winding-up the relevant plan in the future (with the expectation of transferring the annuities to the individual plan members), the insurance company assumes responsibility for the payment of benefits to the relevant plan participants once the wind-up is complete. In this case, settlement accounting is applied to the purchase of the annuities and the loss (if any) is recorded in other charges in our consolidated statement of operations. In addition, both the pension assets and liabilities will be removed from our consolidated balance sheet once the wind-up of the plan is complete. |
Stock-based compensation (SBC) | Stock-based compensation (SBC): We generally grant restricted share units (RSUs) and performance share units (PSUs), and from time to time grant stock options, to employees under our SBC plans. Stock options and RSUs vest in installments over the vesting period. Stock options generally vest one-quarter per year over a four-year period, and RSUs generally vest one-third per year over a three-year period. We treat each installment under a grant of stock options and RSUs as a separate grant in determining the compensation expense. PSUs vest at the end of their respective terms, generally three years from the grant date, to the extent that specified performance conditions have been met. We may grant stock options to employees under our Long-Term Incentive Plan (LTIP). We may grant RSUs and PSUs to employees under either our LTIP or our Celestica Share Unit Plan (CSUP). Under the CSUP, we may settle vested awards (in our discretion) with SVS purchased in the open market (on a one-for-one basis) or with cash. Under the LTIP, we may (at the time of grant) authorize the grantees to elect to settle vested awards in either cash or SVS issued from treasury (up to a specified limit) or purchased in the open market (in either case on a one-for-one basis). Absent such permitted election for LTIP grants, we intend to settle all employee RSUs and PSUs under the LTIP and CSUP in SVS (net of withholding taxes). As a result, we account for these share unit awards as equity-settled awards. Stock options: Stock options are exercisable for SVS. We recognize the grant date fair value of stock options granted to employees as compensation expense in our consolidated statement of operations, with a corresponding charge to contributed surplus on our consolidated balance sheet, over the vesting period. We adjust compensation expense to reflect the estimated number of options we expect to vest at the end of the vesting period. When options are exercised, we credit the proceeds to capital stock on our consolidated balance sheet. We measure the fair value of stock options using the Black-Scholes option pricing model. Measurement inputs include the price of our SVS on the grant date, the exercise price of the stock option, and our estimates of the following: expected price volatility of our SVS (based on weighted average historic volatility), weighted average expected life of the stock option (based on historical experience and general option-holder behavior), and the risk-free interest rate. RSUs: The cost we record for RSUs is based on the market value of our SVS at the time of grant. We amortize the cost of RSUs to compensation expense in our consolidated statement of operations, with a corresponding charge to contributed surplus on our consolidated balance sheet, over the vesting period. PSUs: The number of PSUs that will actually vest varies from 0% to 200% of a target amount granted. For PSUs granted in 2021 and 2022, the number of PSUs that vested or will vest are based on the level of achievement of a pre-determined non-market performance measurement in the final year of the three-year performance period, subject to modification by each of a separate pre-determined non-market financial target, and our relative total shareholder return (TSR), a market performance condition, compared to a pre-defined group of companies, over the three-year performance period. Commencing in 2023, the number of PSUs that will vest are based on the level of achievement of a different pre-determined non-market performance measurement, subject to modification by our relative TSR compared to a pre-defined group of companies, in each case over the three-year performance period. The cost we record for PSUs is based on our estimate of the outcome of the applicable performance conditions. The grant date fair value of the non-TSR-based performance measurement and modifier (where applicable) is based on the market value of our SVS at the time of grant and is subject to adjustment in subsequent periods to reflect changes in the estimated level of achievement related to the applicable performance condition. The grant date fair value of the TSR modifier is based on a Monte Carlo simulation model. We recognize compensation expense in our consolidated statement of operations on a straight-line basis over the requisite service period and we reduce this expense for the estimated PSU awards that are not expected to vest because the employment conditions are not expected to be satisfied. Deferred Share Units (DSUs): The compensation of our directors is comprised of annual Board and Board Chair retainer fees, annual standing Board committee Chair retainer fees (where applicable), and travel fees (collectively, Annual Fees) payable in quarterly installments in arrears**. Directors must elect to receive 0%, 25% or 50% of their Annual Fees in cash, with the balance in DSUs, until such director satisfies the requirements of the Company's Director Share Ownership Guidelines. Once a director has satisfied such requirements, the director may then elect to receive 0%, 25% or 50% of their Annual Fees in cash, with the balance either in DSUs or in RSUs (if no election is made, 100% of such director's Annual Fees will be paid in DSUs). The number of DSUs or RSUs we grant is determined by dividing the elected percentage of the dollar value of the Annual Fees earned in the quarter by the closing price of our SVS on the NYSE on the last business day of such quarter (in the case of DSUs) or the trading day preceding the date of grant (in the case of RSUs). Each DSU represents the right to receive one SVS or an equivalent value in cash after the individual ceases to serve as a director, and is neither an employee of the Company, nor a director or employee of any corporation that does not deal at arm's length with the Company (Retires). DSUs granted to directors may be settled with SVS purchased in the open market, or with cash (at the discretion of the Company). We intend to settle DSU awards with SVS. RSUs granted to directors vest ratably over a three-year period and are governed by the terms of our LTIP. Each vested RSU entitles the holder thereof to one SVS; however, if permitted by the Company under the terms of the grant, a director may elect to receive a payment of cash in lieu of SVS. Absent such permitted election, we intend to settle these RSU awards with SVS. We account for DSUs and RSUs granted to directors as equity-settled awards. Unvested RSUs vest immediately on the date the director Retires. We expense the cost of director compensation through SG&A in our consolidated statement of operations in the period the services are rendered. ** Prior to September 3, 2023, we were party to a services agreement (Services Agreement) with Onex Corporation (Onex), our then-controlling shareholder, for the services of Mr. Tawfiq Popatia, an officer of Onex, as a director of Celestica, pursuant to which Onex received compensation for such services. The Services Agreement terminated automatically on September 3, 2023. Mr. Popatia resigned from our Board on September 3, 2023. Onex’s outstanding DSUs were settled in October 2023. See notes 12 and 17. |
Income taxes | Income taxes: Our income tax expense for each reporting period is comprised of current and deferred income taxes. Current income taxes and deferred income taxes are recognized in our consolidated statement of operations, except to the extent that they relate to items recognized in OCI or directly in equity, in which case they are recognized in OCI or directly in equity, respectively. In the ordinary course of business, there are many transactions for which the ultimate tax outcome is uncertain until we resolve it with the relevant tax authority, which may take many years. The final tax outcome of these matters may be different from the estimates management originally made in determining our tax provision. Management periodically evaluates the positions taken in our tax returns where applicable tax rules are subject to interpretation. We establish provisions related to tax uncertainties where appropriate, based on our estimate of the amount that ultimately will be paid to or received from the tax authorities. We recognize accrued interest and penalties relating to tax uncertainties in current income tax expense. The various judgments and estimates used by management in establishing provisions related to tax uncertainties can significantly affect the amounts we recognize in our consolidated financial statements. We use the liability method of accounting for deferred income taxes. Under this method, we recognize deferred income tax assets and liabilities for future income tax consequences attributable to temporary differences between the financial statement carrying amounts of assets and liabilities and their respective income tax bases, and on unused tax losses and tax credit carryforwards. We measure deferred income taxes using tax rates and laws that have been enacted or substantively enacted at the reporting date and that we expect will apply when the related deferred income tax asset is realized or the deferred income tax liability is settled. We recognize deferred income tax assets to the extent we believe it is probable, based on management’s estimates, that future taxable profit will be available against which the deductible temporary differences as well as unused tax losses and tax credit carryforwards can be utilized. Estimates of future taxable profit in different tax jurisdictions are an area of estimation uncertainty. We review our deferred income tax assets at each reporting date and reduce them to the extent we determine it is no longer probable that we will realize the related tax benefits. Unrecognized deferred tax assets are reassessed at each reporting date and recognized to the extent that it has become probable that future taxable profits will be available against which they can be used. We recognize the effect of a change in income tax rates in the period of enactment or substantive enactment. We do not recognize deferred income taxes if they arise from the initial recognition of goodwill, or for temporary differences arising from the initial recognition of an asset or a liability in a transaction that is not a business combination and that affects neither accounting nor taxable profit or loss. We also do not recognize deferred income taxes on temporary differences relating to investments in subsidiaries to the extent we are able to control the timing of the reversal of the temporary differences and it is probable that the temporary differences will not reverse in the foreseeable future. |
Financial assets and financial liabilities | Financial assets and financial liabilities: We recognize financial assets and financial liabilities initially at fair value and subsequently measure these at either fair value or amortized cost based on their classification as described below. Also see note 2 (p) |
Fair value through profit or loss (FVTPL) | Fair value through profit or loss (FVTPL): Financial assets and any financial liabilities that we purchase or incur, respectively, with the intention of generating earnings in the near term, and derivatives other than cash flow hedges, are classified as FVTPL. This category includes short-term investments in money market funds (if applicable) that we group with cash equivalents, and derivative assets and derivative liabilities that do not qualify for hedge accounting. For investments that we classify as FVTPL, we initially recognize such financial assets on our consolidated balance sheet at fair value, and recognize subsequent changes in our consolidated statement of operations (unless they relate to effective hedging relationships for accounting purposes, in which case the subsequent changes are recorded in OCI). See note 2( o ). We expense transaction costs related to financial instruments classified as FVTPL as incurred in our consolidated statement of operations. We may, at our discretion, designate financial instruments as FVTPL that are not classified as such. However, we do not currently hold any liabilities designated as FVTPL. |
Amortized cost | Amortized cost: |
Other financial liabilities | Financial liabilities that are not classified as FVTPL consist of our accounts payable (A/P), the majority of our accrued liabilities and certain other provisions, as well as borrowings under our credit facility, including our term loans. We initially recognize the carrying amount of such liabilities on our consolidated balance sheet at fair value plus transaction costs that are directly attributable to the issuance of such liabilities. These financial liabilities are measured at amortized cost subsequent to initial recognition. Borrowings within a particular quarter for short term working capital needs under our revolving credit facility that we repay in full within such quarter are netted against each other in our consolidated statements of cash flows. |
Derivatives and hedge accounting | Derivatives and hedge accounting: We enter into forward exchange and swap contracts to hedge the cash flow risk associated with firm purchase commitments and forecasted transactions in foreign currencies that we consider to be highly probable, and to hedge foreign-currency denominated balances. We use estimates to forecast future cash flows and the future financial position of net monetary assets or liabilities denominated in foreign currencies. We enter into interest rate swap agreements to mitigate the interest rate risk on a portion of our term loan borrowings. We apply hedge accounting to those hedge relationships that are considered effective. Management assesses the effectiveness of hedges by comparing actual outcomes against our estimates on a regular basis. Subsequent revisions in estimates of future cash flow forecasts, if significant, may result in the discontinuation of hedge accounting for that hedge. We do not enter into derivative contracts for speculative purposes. At the inception of a hedging relationship, we formally document the relationship between our hedging instrument and the hedged item, as well as our risk management objectives and strategy for undertaking the various hedge transactions. Our process includes linking all derivatives to specific assets and liabilities on our consolidated balance sheet or to specific firm commitments or forecasted transactions. We also formally assess, both at the hedge’s inception and at the end of each quarter, whether the derivatives used in hedged transactions are highly effective in offsetting changes in the cash flows of the hedged items. We record the gain or loss from these forward exchange and swap contracts in the same line item where the underlying exposures are recognized in our consolidated statement of operations. Forward exchange and swap contracts that are not effective hedges for accounting purposes are marked to market each period, resulting in a gain or loss in our consolidated statement of operations. We measure those derivative contracts at fair value on our consolidated balance sheet. The majority of our derivative assets and liabilities arise from the foreign currency forward and swap contracts and interest rate swaps that we designate as cash flow hedges. In a cash flow hedge, we defer the changes in the fair value of the hedging derivative, to the extent effective, in accumulated OCI until we recognize the hedged item in our consolidated statement of operations. Any cash flow hedge ineffectiveness is recognized in our consolidated statement of operations immediately. For hedging instruments that we discontinue before the end of the original hedge term, we amortize the unrealized hedge gain or loss in accumulated OCI to our consolidated statement of operations over the remaining term of the hedging relationship or when the hedged item is recognized in net income, if this occurs prior to the end of the original term of the hedging relationship. If the hedged item ceases to exist before the end of the original hedge term, we recognize the unrealized hedge gain or loss in accumulated OCI immediately in our consolidated statement of operations. For our current foreign currency forward and swap cash flow hedges, the majority of the underlying expenses we hedge are for inventory, labor and facility costs, which are included in cost of sales in our consolidated statement of operations. For our interest rate swap agreements, the underlying interest expenses that we hedge are included in finance costs in our consolidated statement of opera tions. We entered into a total return swap (TRS) agreement (TRS Agreement) in December 2022 with a third-party bank with respect to an original notional amount of 3.0 million of our SVS (reduced to 2.5 million SVS upon our termination of a portion of the TRS Agreement in September 2023), to manage our cash flow requirements and exposure to fluctuations in the share price of the SVS in connection with the settlement of certain outstanding equity awards under our SBC plans. The counterparty under the TRS Agreement is obligated to make a payment to us upon its termination (in whole or in part) or expiration (Settlement) based on the increase (if any) in the value of the TRS (as defined in the TRS Agreement) over the TRS Agreement’s term, in exchange for periodic payments made by us (TRS Interest) based on the counterparty’s SVS purchase costs and Secured Overnight Financing Rate (SOFR) plus a specified margin. Similarly, if the value of the TRS (as defined in the TRS Agreement) decreases over the term of the TRS Agreement, we are obligated to pay the counterparty the amount of such decrease upon Settlement. The change in value of the TRS is determined by comparing the average amount realized by the counterparty upon the disposition of purchased SVS to the average amount paid for such SVS. The TRS does not qualify for hedge accounting. We measure the TRS Agreement at fair value on our consolidated balance sheet, with fair value adjustments (TRS FVAs), which represent changes in fair value, recognized in our consolidated statement of operations. TRS Interest is included in finance costs in our consolidated statement of operations. We value our derivative assets and liabilities based on inputs that are either readily available in public markets or derived from information available in public markets. The inputs we use include discount rates, forward exchange rates, interest rate yield curves and volatility, the share price of our SVS, and credit risk adjustments. Changes in these inputs can cause significant volatility in the fair value of our financial instruments. |
Impairment of financial assets | Impairment of financial assets: We review financial assets for impairment at each reporting date. Financial assets are deemed to be impaired when objective evidence resulting from one or more events subsequent to the initial recognition of the asset indicates the estimated future cash flows of the asset have decreased. We use a forward-looking expected credit loss (ECL) model in determining our allowance for doubtful accounts as it relates to trade receivables, contract assets (under IFRS 15, Revenue from Contracts with Customers ), and other financial assets. Our allowance is based on historical experience, and includes consideration of the aging of the balances, the customer's creditworthiness, current economic conditions, expectation of bankruptcies, and political and economic volatility in the markets/location of our customers, among other factors. We measure an impairment loss as the excess of the carrying amount over the present value of the estimated future cash flows discounted using the financial asset’s original discount rate, and we recognize this loss in our consolidated statement of operations. A financial asset is written-off or written-down to its net realizable value as soon as it is determined to be impaired. We adjust previous write-downs to reflect changes in estimates or actual experience. |
Revenue and deferred investment costs | Revenue and deferred investment costs: We derive the majority of our revenue from the sale of electronic products we manufacture and services we provide to customer specifications. We recognize revenue from the sale of products and services rendered when our performance obligations have been satisfied or when the associated control over the products has passed to the customer and no material uncertainties remain as to the collection of our receivables. Where the products are custom-made to meet a customer's specific requirements, and such customer is obligated to compensate us for the work performed to date, we recognize revenue over time as production progresses to completion, or as services are rendered. We generally estimate revenue for our work in progress based on costs incurred to date plus a reasonable profit margin for eligible products for which we do not have alternative uses. For other contracts that do not qualify for revenue recognition over time, we recognize revenue at the point in time where control is passed to the customer, which is generally upon shipment when no further performance obligation remains except for our standard manufacturing or service warranties. We apply significant estimates, judgment and assumptions in interpreting our customer contracts, determining the timing of revenue recognition and measuring work in progress. As our invoices are typically issued at the time of the delivery of final products to the customers, the earlier recognition of revenue on certain custom-made products results in unbilled contract assets which we include in A/R on our consolidated balance sheet. As most of our contracts have an expected duration of one year or less, we have applied the practical expedient provided by IFRS 15.121 (such that specified disclosures pertaining to remaining performance obligations are not required), as well as the practical expedient provided by IFRS 15.63 (such that transaction price adjustments for the effects of significant financing are not required). In general, consideration from our contracts with customers is not excluded from the transaction price used to measure revenue. We record certain investment costs, comprised of contract acquisition or fulfillment costs, to the extent we consider the recoverability of these costs probable, in other current and non-current assets on our consolidated balance sheet. We subsequently amortize these investment costs over the projected period of expected future economic benefits, or as recoveries are realized, from the new contracts. We monitor these deferred costs for potential impairment on a regular basis. |
Basis of Preparation and Mate_3
Basis of Preparation and Material Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Disclosure Of Significant Accounting Policies [Abstract] | |
Disclosure of Detailed Information About Property, Plant and Equipment | We recognize depreciation expense on a straight-line basis over the estimated useful life of the asset as follows: Buildings Up to 40 years Building/leasehold improvements Up to 40 years or if shorter, term of lease Machinery and equipment 3 to 15 years 2022 Cost Accumulated Net Book Land $ 34.2 $ 12.0 $ 22.2 Buildings including improvements 374.6 235.5 139.1 Machinery and equipment 808.2 598.0 210.2 $ 1,217.0 $ 845.5 $ 371.5 2023 Cost Accumulated Net Book Land $ 33.7 $ 12.0 $ 21.7 Buildings including improvements 402.2 250.8 151.4 Machinery and equipment 939.6 640.0 299.6 $ 1,375.5 $ 902.8 $ 472.7 The following table details the changes to the net book value of PP&E for the years indicated: Land Buildings Machinery Total Balance — January 1, 2022 $ 23.2 $ 155.5 $ 160.0 $ 338.7 Additions — 16.5 99.7 116.2 Depreciation — (22.1) (47.1) (69.2) Accelerated depreciation of assets and other disposals (i)(ii) — (10.1) (2.0) (12.1) Foreign exchange and other (1.0) (0.7) (0.4) (2.1) Balance — December 31, 2022 (iii) 22.2 139.1 210.2 371.5 Additions — 39.2 151.0 190.2 Depreciation — (23.6) (60.2) (83.8) Accelerated depreciation of assets and other disposals (i) — (2.8) (2.5) (5.3) Foreign exchange and other (0.5) (0.5) 1.1 0.1 Balance — December 31, 2023 (iii) $ 21.7 $ 151.4 $ 299.6 $ 472.7 (i) Includes accelerated depreciation of equipment related to disengaged programs in 2022 and 2023 (recorded in each case as restructuring charges), as described in note 15 (a ). (ii) Includes the disposal of a building located in Asia ($8.1, attributable to our CCS segment). (iii) Total PP&E amount includes $35.0 of construction in progress at December 31, 2023 (December 31, 2022 — $19.7). |
Disclosure of Detailed Information About Intangible Assets | We amortize these assets on a straight-line basis over their estimated useful lives as follows: Intellectual property 3 to 5 years Other intangible assets 4 to 15 years Computer software assets 1 to 10 years |
Acquisitions (Tables)
Acquisitions (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Disclosure of detailed information about business combination [abstract] | |
Details of the Purchase Price Allocation by Year of Acquisition | Details of our final purchase price allocation for the PCI acquisition are as follows: Accounts receivable and other current assets $ 68.9 Inventories 83.6 PP&E 22.8 Customer intangible assets 176.1 Other non-current assets 6.9 Goodwill 123.8 Accounts payable and accrued liabilities (121.3) Other current liabilities (8.1) Deferred income taxes and other long-term liabilities (38.0) $ 314.7 |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Classes of current inventories [abstract] | |
Schedule of Current Inventory | Inventories are comprised of the following: December 31 2022 2023 Raw materials $ 2,130.6 $ 1,885.5 Work in progress 84.1 93.6 Finished goods 135.6 127.0 $ 2,350.3 $ 2,106.1 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Property, plant and equipment [abstract] | |
Disclosure of Detailed Information About Property, Plant and Equipment | We recognize depreciation expense on a straight-line basis over the estimated useful life of the asset as follows: Buildings Up to 40 years Building/leasehold improvements Up to 40 years or if shorter, term of lease Machinery and equipment 3 to 15 years 2022 Cost Accumulated Net Book Land $ 34.2 $ 12.0 $ 22.2 Buildings including improvements 374.6 235.5 139.1 Machinery and equipment 808.2 598.0 210.2 $ 1,217.0 $ 845.5 $ 371.5 2023 Cost Accumulated Net Book Land $ 33.7 $ 12.0 $ 21.7 Buildings including improvements 402.2 250.8 151.4 Machinery and equipment 939.6 640.0 299.6 $ 1,375.5 $ 902.8 $ 472.7 The following table details the changes to the net book value of PP&E for the years indicated: Land Buildings Machinery Total Balance — January 1, 2022 $ 23.2 $ 155.5 $ 160.0 $ 338.7 Additions — 16.5 99.7 116.2 Depreciation — (22.1) (47.1) (69.2) Accelerated depreciation of assets and other disposals (i)(ii) — (10.1) (2.0) (12.1) Foreign exchange and other (1.0) (0.7) (0.4) (2.1) Balance — December 31, 2022 (iii) 22.2 139.1 210.2 371.5 Additions — 39.2 151.0 190.2 Depreciation — (23.6) (60.2) (83.8) Accelerated depreciation of assets and other disposals (i) — (2.8) (2.5) (5.3) Foreign exchange and other (0.5) (0.5) 1.1 0.1 Balance — December 31, 2023 (iii) $ 21.7 $ 151.4 $ 299.6 $ 472.7 (i) Includes accelerated depreciation of equipment related to disengaged programs in 2022 and 2023 (recorded in each case as restructuring charges), as described in note 15 (a ). (ii) Includes the disposal of a building located in Asia ($8.1, attributable to our CCS segment). (iii) Total PP&E amount includes $35.0 of construction in progress at December 31, 2023 (December 31, 2022 — $19.7). |
Right-Of-Use Assets (Tables)
Right-Of-Use Assets (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Disclosure of quantitative information about right-of-use assets [abstract] | |
Disclosure of Information of the Net Book Value of Right-Of-Use Asset | The following table details the changes to the net book value of ROU assets during the periods shown: Land Buildings Other Total Balance — January 1, 2022 $ 10.7 $ 101.0 $ 2.1 $ 113.8 New leases and lease renewals — 63.0 0.4 63.4 Depreciation (0.6) (34.3) (0.5) (35.4) Accelerated depreciation of assets and lease terminations (i) — (0.7) — (0.7) Foreign exchange and other — (2.2) (0.1) (2.3) Balance — December 31, 2022 10.1 126.8 1.9 138.8 New leases and lease renewals 0.4 52.9 0.4 53.7 Depreciation (0.6) (35.9) (0.5) (37.0) Accelerated depreciation of assets and lease terminations (i) — (1.1) — (1.1) Foreign exchange and other — (0.4) — (0.4) Balance — December 31, 2023 $ 9.9 $ 142.3 $ 1.8 $ 154.0 (i) Represents the accelerated depreciation (in each case as restructuring charges) of certain ROU assets in connection with restructuring actions. See note 15 (a ). |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Intangible assets and goodwill [abstract] | |
Disclosure of Changes in Goodwill and Intangible Assets | Goodwill and intangible assets are comprised of the following: 2022 Cost Accumulated Net Book Goodwill $ 377.2 $ 55.4 $ 321.8 Intellectual property $ 111.3 $ 111.3 $ — Other intangible assets 679.3 342.1 337.2 Computer software assets 300.7 291.4 9.3 $ 1,091.3 $ 744.8 $ 346.5 2023 Cost Accumulated Net Book Goodwill $ 377.1 $ 55.4 $ 321.7 Intellectual property $ 111.3 $ 111.3 $ — Other intangible assets 672.3 371.9 300.4 Computer software assets 310.8 292.9 17.9 $ 1,094.4 $ 776.1 $ 318.3 The following table details the changes to the net book value of goodwill and intangible assets for the years indicated: Note Goodwill Other Computer Total Balance — January 1, 2022 $ 324.2 $ 371.5 $ 10.5 $ 706.2 Additions — — 1.9 1.9 Adjustment to acquisitions through business combination (i) 3 (2.2) 2.7 — 0.5 Amortization — (37.0) (3.1) (40.1) Foreign exchange and other (0.2) — — (0.2) Balance — December 31, 2022 321.8 337.2 9.3 668.3 Additions — — 11.4 11.4 Amortization — (36.8) (2.8) (39.6) Foreign exchange and other (0.1) — — (0.1) Balance — December 31, 2023 $ 321.7 $ 300.4 $ 17.9 $ 640.0 (i) In Q1 2022, we finalized the PCI purchase price allocation. In connection therewith, we adjusted our preliminary purchase price allocation by, among other things, increasing the carrying value of customer intangible assets by $2.7, and decreasing goodwill by $2.2. See note 3. |
Disclosure of Assumptions for Annual Impairment Assessments of Goodwill | We used the following assumptions for purposes of our Annual Impairment Assessments of goodwill for the periods shown: Assumption Capital Equipment CGU A&D CGU (iii) Atrenne CGU (iii) PCI CGU Annual revenue growth rate 2023 — 12% over 5 year period; 2022 — 9% over 5 year period; 2021 — 10% over 5 year period 2023 — 9% over 5 year period; 2022 — 12% over 5 year period; 2021 — 11% over 5 year period 2023 — N/A (iii) ; 2022 — N/A (iii) ; 2021 — 19% over 5 year period 2023 — 11% over 5 year period; 2022 — 11% over 5 year period; 2021 — 9% over 5 year period Average annual CGU margins over the 5-year period 2023 — above total company margin (i) ; 2022 — above total company margin (i) ; 2021 — above total company margin (i) 2023 — similar to total company margin (i) ; 2022 — slightly above total company margin (i) ; 2021 — slightly above total company margin (i) 2023 — N/A (iii) ; 2022 — N/A (iii) ; 2021 — above total company margin (i) 2023 — above total company margin (i) ; 2022 — above total company margin (i) ; 2021 — above total company margin (i) Discount rate (ii) 2023 — 14%; 2022 — 14%; 2021 — 11% 2023 — 12%; 2022 — 12%; 2021 — 11% 2023 — N/A (iii) ; 2022 — N/A (iii) ; 2021 — 10% 2023 — 15%; 2022 — 15%; 2021 — 15% (i) Total company margin is defined as total segment income as a percentage of total revenue. See note 25. (ii) For 2023, the pre-tax discount rate by CGU is as follows: Capital Equipment CGU 18%; A&D CGU 15%; and PCI CGU 17%. (iii) Commencing in 2022, our Atrenne CGU merged into our A&D CGU, and is no longer a separate CGU. As a result, our 2022 and 2023 Annual Impairment Assessments for our A&D CGU include our Atrenne business. |
Other Non-Current Assets (Table
Other Non-Current Assets (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Subclassifications of assets, liabilities and equities [abstract] | |
Disclosure of Detailed Information About Non-current Assets | December 31 Note 2022 2023 Net pension assets 18 $ 7.1 $ 5.3 Land rights 7.3 6.9 Deferred investment costs 1.7 9.3 Deferred financing costs 1.5 1.1 Interest rate swap derivative 20 18.7 11.0 Other 17.2 15.3 $ 53.5 $ 48.9 |
Provisions (Tables)
Provisions (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Disclosure of other provisions [line items] | |
Disclosure of Changes in Provisions | The following chart details the changes in our provisions for the year indicated: Restructuring Warranty Legal (i) Other (ii) Total Balance — December 31, 2022 $ 5.8 $ 31.8 $ 0.8 $ 8.6 $ 47.0 Provisions 9.6 19.6 3.2 1.7 34.1 Reversal of prior year provisions (iii) — (4.9) — — (4.9) Payments/usage (11.8) (3.0) — (0.3) (15.1) Accretion, foreign exchange and other — 0.1 — 0.2 0.3 Balance — December 31, 2023 $ 3.6 $ 43.6 $ 4.0 $ 10.2 $ 61.4 Current $ 3.6 $ 16.0 $ 4.0 $ — $ 23.6 Non-current (iv) — 27.6 — 10.2 37.8 December 31, 2023 $ 3.6 $ 43.6 $ 4.0 $ 10.2 $ 61.4 (i) Legal represents our aggregate provisions recorded for various legal actions based on our estimates of the likely outcomes. (ii) Other represents our asset retirement obligations relating to properties that we currently lease. (iii) During 2023, we reversed prior year warranty provisions primarily as a result of expired warranties and changes in estimated costs based on historical experience. (iv) Non-current balances are included in provisions and other non-current liabilities on our consolidated balance sheet. |
Credit Facilities and Lease O_2
Credit Facilities and Lease Obligations (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Borrowings [abstract] | |
Contractual Obligation, Fiscal Year Maturity | At December 31, 2023, the aggregate remaining mandatory principal repayments under the Credit Facility are as follows (assuming no further mandatory principal repayments are required based on excess cash flow or net cash proceeds): Total 2024 2025 2026 Initial Term Loan $ 280.4 $ — $ 280.4 $ — Incremental Term Loan (i) $ 328.5 $ 18.25 $ 18.25 $ 292.0 |
Schedule of Credit Facility Activity | Activity under our Credit Facility for the periods indicated is set forth below: Revolver (i) Term loans Outstanding balances as of December 31, 2020 $ — $ 470.4 Amount repaid in Q1 2021 — (30.0) Amounts borrowed in Q4 2021 220.0 365.0 Amount repaid in Q4 2021 (220.0) (145.0) Outstanding balances as of December 31, 2021 $ — $ 660.4 Amount repaid in Q1 2022 — (4.5625) Amount repaid in Q2 2022 — (4.5625) Amount repaid in Q3 2022 — (4.5625) Amount repaid in Q4 2022 — (19.5625) Outstanding balances as of December 31, 2022 $ — $ 627.2 Amount repaid in Q1 2023 — (4.5625) Amount repaid in Q2 2023 — (4.5625) Amount repaid in Q3 2023 — (4.5625) Amount repaid in Q4 2023 — (4.5625) Outstanding balances as of December 31, 2023 $ — $ 608.9 (i) In addition to borrowings for the acquisition of PCI, we drew on the Revolver for short term borrowings during most quarters of 2021, 2022 and 2023, and repaid such borrowings in full within the quarter borrowed. Such intra-quarter borrowings and repayments, other than those related to the acquisition of PCI, are offset against each other, and are excluded from this table. Intra-quarter borrowings (and repayments in equivalent amounts) in Q4 2023, Q3 2023, Q2 2023 and Q1 2023 were a cumulative aggregate of $270, $140, $200 and $281, respectively (Q4 2022, Q3 2022, Q2 2022 and Q1 2022 — $300, $359, $348 and $228, respectively; Q4 2021, Q3 2021, Q2 2021 and Q1 2021 — $300, nil, nil and nil, respectively). |
Borrowings Under the Revolving Facility and Term Loan and Lease Obligations | The following table sets forth, at the dates shown: outstanding borrowings under the Credit Facility, excluding ordinary course L/Cs; notional amounts under our interest rate swap agreements, outstanding lease obligations; and information regarding outstanding L/Cs, surety bonds and overdraft facilities: Outstanding borrowings Notional amounts under interest rate swaps (note 20) December 31 December 31 December 31 December 31 Borrowings under the Revolver (i) $ — $ — $ — $ — Borrowings under the Term Loans (i) Initial Term Loan $ 280.4 $ 280.4 $ 100.0 $ 100.0 Incremental Term Loan 346.8 328.5 230.0 230.0 Total $ 627.2 $ 608.9 $ 330.0 $ 330.0 Total borrowings under Credit Facility $ 627.2 $ 608.9 Unamortized debt issuance costs related to Term Loans (i) (3.5) (2.6) Lease obligations (ii) 162.4 176.5 $ 786.1 $ 782.8 Total Credit Facility and lease obligations: Current portion $ 52.2 $ 51.6 Long-term portion 733.9 731.2 $ 786.1 $ 782.8 L/Cs, surety bonds and overdraft facilities: Outstanding L/Cs under the Revolver $ 18.0 $ 10.5 Outstanding L/Cs and surety bonds outside the Revolver 23.8 16.5 Total $ 41.8 $ 27.0 Available uncommitted bank overdraft facilities $ 198.5 $ 198.5 Amounts outstanding under available uncommitted bank overdraft facilities $ — $ — (i) We incur debt issuance costs upon execution of, subsequent security arrangements under, and amendments to, the Credit Facility. Debt issuance costs incurred in 2023 totaling $0.2 (2022 — $0.3; 2021 — $2.2) in connection with the Revolver were deferred as other assets on our consolidated balance sheets and are amortized on a straight line basis over the term (or remaining term, as applicable) of the Revolver. Debt issuance costs incurred in 2023 totaling $0.2 (2022 — $0.3; 2021 — $1.8) in connection with our Term Loans were deferred as long-term debt on our consolidated balance sheets and are amortized over their respective terms using the effective interest rate method. In December 2021, we accelerated the amortization of $2.6 of unamortized deferred financing costs related to the termination of the Terminated Term Loan, which we recorded in other charges (see note 15). (ii) These lease obligations represent the present value of unpaid lease payment obligations recognized as liabilities at December 31, 2022 and December 31, 2023 , respectively, which have been discounted using our incremental borrowing rate on the lease commencement dates. In addition to these lease obligations, we have commitments under additional real property leases not recognized as liabilities at December 31, 2023, because such leases had not yet commenced as of such date. A description of these leases and minimum lease payments thereunder are disclosed in note |
Contractual Undiscounted Cash Flows for Lease Obligations | At December 31, 2023, the contractual undiscounted cash flows for lease obligations recognized as of such date were as follows: Years ending December 31 2024 $ 43.8 2025 37.5 2026 31.0 2027 21.5 2028 17.1 Thereafter 67.4 $ 218.3 Other lease-related expenses that were recognized in the consolidated statement of operations are as follows: Year ended December 31 2021 2022 2023 Interest expense on lease obligations $ 6.6 $ 8.1 $ 9.6 Variable lease payments not included in the measurement of lease obligations $ 0.9 $ 1.2 $ 0.7 Expenses relating to short-term leases or low-value leases $ 1.5 $ 1.8 $ 1.4 At December 31, 2023, we had commitments (not recognized as liabilities as of such date) under IT support agreements that require future minimum payments as follows: 2024 $ 22.6 2025 18.3 2026 12.8 2027 11.4 2028 9.7 Thereafter 15.3 Total future minimum payments $ 90.1 |
Capital Stock (Tables)
Capital Stock (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Share Capital and Share-based Payment Arrangements [Abstract] | |
Disclosure of Detailed Information About Capital Transactions | Capital transactions: Number of shares (in millions) SVS MVS Issued and outstanding at December 31, 2020 110.5 18.6 Issued from treasury (i) 0.03 — Cancelled under normal course issuer bid (NCIB) (4.4) — Issued and outstanding at December 31, 2021 106.1 18.6 Issued from treasury (i) 0.07 — Cancelled under NCIB (3.14) — Issued and outstanding at December 31, 2022 103.0 18.6 Issued from treasury (i) 0.05 — Cancelled under NCIB (2.7) — Conversion of MVS into SVS in connection with the Secondary Offerings 18.6 (18.6) Issued and outstanding at December 31, 2023 119.0 — (i) In 2023, 0.03 million SVS (2022 — 0.02 million; 2021 — 0.02 million) were issued from treasury upon the exercise of stock options for aggregate cash proceeds of $0.3 ( 2022 — $0.2; 2021 — $0.2). In 2023, we issued 0.02 million (2022 — 0.05 million; 2021 — 0.01 million) SVS from treasury with an ascribed value of $0.2 (2022 — $0.4; 2021 — $0.1) upon the vesting of certain RSUs . We settled other RSUs and PSUs with SVS purchased in the open market (described below). |
Disclosure of Repurchase and Reverse Repurchase Agreements | Information regarding share repurchase activities, including SVS purchases for cancellation under NCIB ASPPs and for SBC plan delivery obligations under SBC ASPPs, for the years indicated is set forth below: Year ended December 31 2021 2022 2023 Aggregate cost (1) of SVS repurchased for cancellation (2) $ 35.9 $ 34.6 $ 35.6 Number of SVS repurchased for cancellation (in millions) (3) 4.4 3.4 2.6 Weighted average price per share for repurchases $ 8.21 $ 10.45 $ 13.83 Aggregate cost (1) of SVS repurchased for delivery under SBC plans (4) $ 20.6 $ 44.9 $ 82.3 Number of SVS repurchased for delivery under SBC plans (in millions) (5) 1.9 3.9 3.7 (1) Includes transaction fees. (2) For 2021, excludes the $7.5 2021 NCIB Accrual; for 2023, excludes the $2.7 2023 NCIB Accrual. (3) Includes 0.9 million, 2.5 million and 2.8 million repurchases of SVS for cancellation under NCIB ASPPs in 2023, 2022 and 2021, respectively. (4) For 2021, excludes the $33.8 2021 SBC Accrual; for 2023, excludes the $7.5 2023 SBC Accrual. (5) Includes 3.7 million, 3.9 million and 0.7 million repurchases of SVS for SBC delivery obligations under SBC ASPPs in 2023, 2022 and 2021, respectively. December 31 2021 2022 2023 Number of SVS held by trustee for delivery under SBC plans (1)(2) (in millions) 1.4 1.5 3.3 Value of SVS held by trustee for delivery under SBC plans (2) $ 15.1 $ 16.7 $ 72.6 (1) For accounting purposes, we classify these shares as treasury stock until they are delivered pursuant to the plans. (2) The number and value of SVS held in 2021 and 2023 exclude the 2021 SBC Accrual and the 2023 SBC Accrual, respectively. |
Additional Information About Share-based Payment Arrangements | Information regarding employee SBC expense and TRS FVAs for the years indicated is set forth below: Year ended December 31 2021 2022 2023 Employee SBC expense in cost of sales $ 13.0 $ 20.3 $ 22.6 Employee SBC expense in SG&A 20.4 30.7 33.0 Total employee SBC expense $ 33.4 $ 51.0 $ 55.6 TRS FVAs (gains) in cost of sales $ — $ — $ (18.6) TRS FVAs (gains) in SG&A — — (27.0) Total TRS FVAs (gains) $ — $ — $ (45.6) Combined effect of employee SBC expense and TRS FVAs $ 33.4 $ 51.0 $ 10.0 |
Disclosure of Number and Weighted Average Remaining Contractual Life of Outstanding Share Options | Stock option grants and exercises were as follows for the years indicated: Number of Weighted Average (in millions) Outstanding at January 1, 2021 0.34 $ 12.78 Granted 0.09 $ 10.58 Exercised (0.02) $ 6.54 Outstanding at December 31, 2021 0.41 $ 12.70 Exercised (0.02) $ 6.36 Outstanding at December 31, 2022 0.39 $ 12.38 Exercised (0.02) $ 10.58 Outstanding at December 31, 2023 0.37 $ 12.72 |
Disclosure of Range of Exercise Prices of Outstanding Share Options | The following stock options* were outstanding as at December 31, 2023: Range of Exercise Prices Outstanding Weighted Average Weighted Average Remaining Life Exercisable Weighted Average (in millions) (years) (in millions) $10.58 to $13.23 0.4 12.72 2.8 0.3 $13.03 |
Equity Instruments Other than Options, Measurement Inputs | The assumptions used in the measurement of the grant date fair values of PSUs were as follows: Year ended December 31 2021 2022 2023 Expected volatility 49 % 52 % 53 % Expected life 3 years 3 years 3 years Risk-free interest rate (based on 3-year Treasury bonds) 0.2 % 1.4 % 3.9 % |
Disclosure of Detailed Information About RSU and PSU Transactions | Information regarding aggregate RSU, PSU and stock option grants to employees, as applicable, for the years indicated is set forth below: Year ended December 31 2021 2022 2023 RSUs Granted: Number of awards (in millions) 3.0 2.0 2.0 Weighted average grant date fair value per unit $ 8.36 $ 12.17 $ 13.20 PSUs Granted: Number of awards (in millions, representing 100% of target) 2.9 1.3 1.3 Weighted average grant date fair value per unit $ 9.49 $ 14.27 $ 15.06 Stock Options Granted: Number of awards (in millions) 0.1 — — Weighted average grant date fair value per option $ 4.22 $ — $ — December 31 2021 2022 2023 Number of outstanding RSUs (in millions) 4.6 3.8 3.2 Number of outstanding PSUs (in millions, representing 100% of target granted) 6.1 5.1 4.6 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss, Net of Tax (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Subclassifications of assets, liabilities and equities [abstract] | |
Disclosure of Detailed Information about Accumulated Other Comprehensive Income | Year ended December 31 Note 2021 2022 2023 Opening balance of foreign currency translation account $ (10.3) $ (18.0) $ (24.7) Foreign currency translation adjustments (7.7) (6.7) (3.4) Closing balance (18.0) (24.7) (28.1) Opening balance of unrealized net gain (loss) on currency forward cash flow hedges $ 11.6 $ (1.9) $ 5.3 Net gain (loss) on currency forward cash flow hedges (i) (5.3) (5.9) 2.6 Reclassification of net loss (gain) on currency forward cash flow hedges to operations (ii) (8.2) 13.1 (4.4) Closing balance (iii) (1.9) 5.3 3.5 Opening balance of unrealized net gain (loss) on interest rate swap cash flow hedges $ (16.5) $ (6.9) $ 13.7 Net gain on interest rate swap cash flow hedges (iv) 2.4 18.1 5.0 Reclassification of net loss (gain) on interest rate swap cash flow hedges to operations 7.2 2.5 (9.0) Closing balance (v) (6.9) 13.7 9.7 Actuarial gains (losses) on pension and non-pension post-employment benefit plans 18 $ 9.3 $ 33.5 $ (7.6) Reclassification of actuarial losses (gains) to deficit (9.3) (33.5) 7.6 Closing balance — — — Accumulated other comprehensive loss $ (26.8) $ (5.7) $ (14.9) (i) Net of an income tax expense of nil for 2023 (2022 — net of a $1.6 income tax recovery; 2021 — net of a $0.5 income tax recovery). (ii) Including a $1.0 release in income tax recovery for 2023 (2022 — net of release of $2.2 in income tax recovery; 2021 — net of release of $0.6 in income tax expense) associated with the reclassification of net hedge (gain) loss to the consolidated statements of operations. (iii) Net of an income tax expense of $1.5 at December 31, 2023 (December 31, 2022 — net of a $0.5 income tax expense; December 31, 2021 — net of $0.1 in income tax recovery). (iv) Including an income tax recovery of $1.5 for 2023 (2022 — net of $5.0 in income tax expense; 2021 — net of nil income tax expense). (v) Net of an income tax expense of $3.5 at December 31, 2023 (December 31, 2022 — net of $5.0 in income tax expense; and December 31, 2021 — net of nil income tax expense). |
Expenses By Nature (Tables)
Expenses By Nature (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Analysis of income and expense [abstract] | |
Schedule of Additional Information of Expenses | Items included in our cost of sales and SG&A for the years indicated are set forth below: Year ended December 31 2021 2022 2023 Employee-related costs $ 819.4 $ 955.8 $ 1,028.7 SBC expense included in above employee-related costs 33.4 51.0 55.6 Freight and transportation costs 142.5 186.1 144.0 Depreciation expense (i) 100.8 104.6 120.8 Rental expense (i) 2.4 3.0 2.1 (i) The amortization of ROU assets is included in depreciation expense. See note 7. We expense the costs of low-value and short-term leases in our consolidated statement of operations on a straight-line basis as rental expense. See note 11 for disclosure of these lease expenses. |
Other Charges, Net of Recover_2
Other Charges, Net of Recoveries (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Analysis of income and expense [abstract] | |
Disclosure of Detailed Information about Other Operating Expense | Year ended December 31 2021 2022 2023 Restructuring charges, net of recoveries (a) $ 10.5 $ 8.4 $ 11.2 Transition Costs (Recoveries) (b) 1.2 (2.1) 3.9 Credit Facility-related charges (c) 3.0 — — Acquisition Costs, net of recoveries (d) 6.1 0.4 1.0 Other recoveries, net of costs (e) (10.5) — (0.9) $ 10.3 $ 6.7 $ 15.2 |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Disclosure of transactions between related parties [abstract] | |
Disclosure of Related Party Transactions | The aggregate compensation expenses we recognized under IFRS for our directors and senior executive officers for the periods shown were as follows: Year ended December 31 2021 2022 2023 Short-term employee benefits and costs $ 7.3 $ 9.7 $ 9.6 Post-employment and other long-term benefits 0.6 0.5 0.6 SBC (including DSUs and RSUs to eligible directors) 17.3 25.5 29.2 $ 25.2 $ 35.7 $ 39.4 |
Pension and Non-pension Post-_2
Pension and Non-pension Post-employment Benefit Plans (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Disclosure of information about defined benefit plans [abstract] | |
Market Value of Plan Assets | The table below presents the fair market value of defined pension and other benefit plan assets: Fair Market Actual Asset 2022 2023 2022 2023 Quoted market prices: Debt investment funds $ 9.0 $ 8.9 4 % 4 % Equity investment funds 6.4 5.9 3 % 3 % Non-quoted market prices: Insurance annuities 182.0 182.6 85 % 85 % Other 16.7 16.1 8 % 8 % Total $ 214.1 $ 213.5 100 % 100 % |
Summary of Financial Position of Pension and Other Benefit Plans | The following tables provide a summary of the financial position of our defined pension and other benefit plans: Pension Plans Other Benefit Plans 2022 2023 2022 2023 Plan assets, beginning of year $ 359.9 $ 211.8 $ 2.0 $ 2.3 Interest income 5.8 10.1 — 0.1 Actuarial losses in other comprehensive income (i) (112.0) (10.0) — — Administrative expenses paid from plan assets (0.6) (0.4) — — Employer contributions 4.0 1.3 0.8 0.6 Employer direct benefit payments 0.1 0.3 2.4 3.7 Employer direct settlement payments — — — 1.1 Settlement payments from employer — — — (1.1) Settlement payments from plan — — — (0.1) Benefit payments from plan (10.4) (10.8) (0.4) (0.4) Benefit payments from employer (0.1) (0.3) (2.4) (3.7) Foreign currency exchange rate changes and other (34.9) 9.2 (0.1) (0.2) Plan assets, end of year $ 211.8 $ 211.2 $ 2.3 $ 2.3 (i) Actuarial gains or losses are determined based on actual return on plan assets less interest income as set forth in the table above. Pension Plans Other Benefit Plans 2022 2023 2022 2023 Accrued benefit obligations, beginning of year $ 373.9 $ 216.9 $ 89.1 $ 66.3 Current service cost 0.3 2.2 3.1 3.1 Past service cost and settlement/curtailment losses (ii) — — — 0.9 Interest cost 6.2 10.2 2.7 3.2 Actuarial losses (gains) in other comprehensive income from: — Changes in demographic assumptions (0.5) (6.5) (4.6) — — Changes in financial assumptions (124.7) 5.8 (15.7) 3.3 — Experience adjustments 7.5 (8.0) (1.8) 1.3 Settlement payments from employer — — — (1.1) Settlement payments from plan — — — (0.1) Benefit payments from plan (10.4) (10.8) (0.4) (0.4) Benefit payments from employer (0.1) (0.3) (2.4) (3.7) Foreign currency exchange rate changes and other (35.3) 9.8 (3.7) 1.6 Accrued benefit obligations, end of year $ 216.9 $ 219.3 $ 66.3 $ 74.4 Weighted average duration of benefit obligations (in years) 13 13 10 10 (ii) The settlement losses relate to employee terminations in connection with 2023 restructuring actions. The present value of the defined benefit obligations, the fair value of plan assets and the surplus or deficit in our defined benefit pension and other benefit plans are summarized as follows: Pension Plans Other Benefit Plans 2022 2023 2022 2023 Accrued benefit obligations, end of year $ (216.9) $ (219.3) $ (66.3) $ (74.4) Plan assets, end of year 211.8 211.2 2.3 2.3 Reduction of plan assets due to IFRS restrictions described in note 2 (l) (0.9) (2.6) — — Deficiency of plan assets over accrued benefit obligations $ (6.0) $ (10.7) $ (64.0) $ (72.1) |
Schedule of Amounts Reported in Balance Sheet | The following table outlines the plan balances as reported on our consolidated balance sheets: December 31, 2022 December 31, 2023 Pension Other Total Pension Other Total Pension and non-pension post-employment benefit obligations $ (13.1) $ (63.9) $ (77.0) $ (16.0) $ (72.1) $ (88.1) Current other post-employment benefit obligations — (0.1) (0.1) — — — Non-current net pension assets (note 9) 7.1 — 7.1 5.3 — 5.3 $ (6.0) $ (64.0) $ (70.0) $ (10.7) $ (72.1) $ (82.8) |
Net Expense Recognized in Consolidated Statement of Operations for Pension and Non-pension Post-employment Benefit Plans | The following table outlines the net expense recognized in our consolidated statement of operations for pension and non-pension post-employment benefit plans: Pension Plans Other Benefit Plans 2021 2022 2023 2021 2022 2023 Current service cost $ 2.5 $ 0.3 $ 2.2 $ 3.4 $ 3.1 $ 3.1 Net interest cost 0.4 0.4 0.1 2.4 2.7 3.1 Past service cost and settlement/curtailment losses — — — 0.3 — 0.9 Plan administrative expenses and other 1.3 0.6 0.5 — — — 4.2 1.3 2.8 6.1 5.8 7.1 Defined contribution pension plan expense (note 18(c)) 11.6 12.3 12.7 — — — Total expense for the year $ 15.8 $ 13.6 $ 15.5 $ 6.1 $ 5.8 $ 7.1 |
Actuarial Gains and Losses, Net of Tax, Recognized in OCI and Reclassified | The following table outlines the gains and losses, net of tax, recognized in OCI and reclassified directly to deficit for the years shown: Year ended December 31 2021 2022 2023 Cumulative losses, beginning of year $ 87.0 $ 77.7 $ 44.2 Actuarial losses (gains) recognized during the year (i) (9.3) (33.5) 7.6 Cumulative losses, end of year (ii) $ 77.7 $ 44.2 $ 51.8 (i) Including a $0.1 income tax recovery for 2023 (2022 — $5.0; 2021 — nil). (ii) Net of an income tax recovery of $6.6 as at December 31, 2023 (December 31, 2022 — $6.5; December 31, 2021 — $1.5). |
Percentages and Assumptions Used in Measuring the Plans | The following percentages and assumptions were used in measuring the plans for the years indicated: Pension Plans Other Benefit Plans 2021 2022 2023 2021 2022 2023 Weighted average discount rate at December 31 (i) for: Benefit obligations 1.8 4.9 4.6 3.2 4.9 4.5 Net pension cost 1.4 1.8 4.8 2.5 3.2 4.9 Weighted average rate of compensation increase for: Benefit obligations 1.1 1.1 2.9 4.6 4.6 4.6 Net pension cost 1.1 1.1 1.1 4.6 4.6 4.6 Healthcare cost trend rates: Immediate trend — — — 5.2 5.1 6.5 Ultimate trend — — — 4.0 4.0 4.0 Year the ultimate trend rate is expected to be achieved — — — 2040 2040 2040 (i) The weighted average discount rate is determined using publicly available rates for highly-rated bonds by currency in countries where we have a pension or non-pension benefit plan. A higher discount rate would decrease the present value of the benefit obligation, and a lower discount rate would increase the present value of the benefit obligation. |
Disclosure of Sensitivity Analysis for Actuarial Assumptions | A one percentage-point increase or decrease in one of the following actuarial assumptions, holding other assumptions constant in each case, would increase (decrease) our benefit obligations as follows: Pension Plans Other Benefit Plans Year ended Year ended 1% Increase 1% Decrease 1% Increase 1% Decrease Discount rate $ (24.7) $ 30.5 $ (6.8) $ 7.5 Healthcare cost trend rate $ — $ — $ 3.4 $ (2.9) |
Schedule of Plan Contributions | We made the following plan contributions for the years indicated below and estimate our contribution for 2024 to be as follows: Year ended December 31 Estimated Contribution * 2021 2022 2023 2024 Defined contribution plan $ 11.6 $ 12.3 $ 12.7 $ 12.7 Defined benefit plan 6.1 4.1 1.6 1.3 Total $ 17.7 $ 16.4 $ 14.3 $ 14.0 Non-pension post-employment benefit plans $ 3.6 $ 3.2 $ 5.4 $ 4.6 * Our actual contributions could differ materially from these estimates. |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Income Taxes [Abstract] | |
Disclosure of Major Components of Tax Expense | Year ended December 31 2021 2022 2023 Current income tax expense: Current year (i) $ 44.3 $ 99.1 $ 66.4 Adjustments for prior years, including changes to net provisions related to tax uncertainties (ii) (3.4) (10.4) (2.5) 40.9 88.7 63.9 Deferred income tax expense (recovery): Origination and reversal of temporary differences (i) (iii) 1.3 (22.3) (1.3) Changes in previously unrecognized tax losses and deductible temporary differences, including adjustments for prior years (10.1) (8.3) (0.6) (8.8) (30.6) (1.9) Income tax expense $ 32.1 $ 58.1 $ 62.0 |
Disclosure of Reconciliation of Income Taxes Calculated at the Statutory Income Tax Rate to the Effective Tax Rate | A reconciliation of income taxes calculated at the statutory income tax rate to the income tax expense at the effective tax rate is as follows: Year ended December 31 2021 2022 2023 Earnings before income taxes $ 136.0 $ 203.6 $ 306.6 Income tax expense at Celestica’s statutory income tax rate of 26.5% (2021 to 2023) $ 36.1 $ 54.0 $ 81.3 Impact on income taxes from: Foreign income taxed at different rates (16.9) (34.1) (51.4) Foreign exchange 1.2 5.7 4.0 Other, including non-taxable/non-deductible items and changes to net provisions related to tax uncertainties (i) (ii) 8.2 2.9 19.1 Change in tax rates (iii) (7.6) 0.1 — Change in unrecognized tax losses and deductible temporary differences 11.1 29.5 9.0 Income tax expense $ 32.1 $ 58.1 $ 62.0 (i) These line items in the two tables above include: (i) for 2023, a $11.3 tax expense arising from both the repatriation of undistributed earnings and taxable temporary differences associated with the anticipated repatriation of undistributed earnings from certain of our Asian subsidiaries; (ii) for 2022, a $3.3 tax expense related to taxable temporary differences associated with the then-anticipated repatriation of undistributed earnings (Repatriation Expense) from certain of our Chinese subsidiaries ($3.3 of which was paid in 2023 and realized as a current tax expense in 2023); and (iii) for 2021, a $6.0 Repatriation Expense related to certain of our Chinese subsidiaries ($2.5 of which was paid in 2023 and realized as a current tax expense in 2023 and $2.5 of which was paid in 2022 and realized as current tax expense in 2022). (ii) These line items for 2021, 2022 and 2023 in the two tables above include tax benefits related to return-to-provision adjustments for changes in estimates related to prior years based on changes in facts or circumstances (RTP Adjustments), and net adjustments for tax liabilities and uncertainties (discussed below). (iii) This line item for 2021 in the two tables above relates to a deferred tax recovery recorded in connection with the revaluation of certain temporary differences using the future effective tax rate of our Thailand subsidiary in connection with the then-forthcoming transition from a 100% income tax exemption to a 50% exemption in 2022 under an applicable tax incentive (Revaluation Impact). See the discussion of tax incentives below. |
Changes in Deferred Tax Assets and Liabilities | Changes in deferred tax assets and liabilities for the periods indicated are as follows: Unrealized Accounting Pensions and Tax Property, Other Reclassification between deferred tax assets and deferred tax liabilities (i) Total Deferred tax assets: Balance — January 1, 2022 $ — $ 17.7 $ 2.8 $ 69.2 $ — $ 1.2 $ (43.2) $ 47.7 Credited (charged) to net earnings — 13.7 2.8 (10.7) — 17.4 — 23.2 Credited directly to equity — — 4.4 0.4 — (5.1) — (0.3) Effects of foreign exchange — (0.5) — (1.9) — (0.2) — (2.6) Other — — — — — — 0.9 0.9 Balance — December 31, 2022 — 30.9 10.0 57.0 — 13.3 (42.3) 68.9 Credited (charged) to net earnings — (1.4) (2.4) (8.3) — 8.1 — (4.0) Credited (charged) directly to equity — — (0.1) — — 0.7 — 0.6 Effects of foreign exchange — (0.6) (0.1) 0.2 — 1.0 — 0.5 Other — (0.1) — — — — (3.4) (3.5) Balance — December 31, 2023 $ — $ 28.8 $ 7.4 $ 48.9 $ — $ 23.1 $ (45.7) $ 62.5 Deferred tax liabilities: Balance — January 1, 2022 $ 27.2 $ — $ — $ — $ 76.2 $ — $ (43.2) $ 60.2 Charged (credited) to net earnings (5.0) — — — (2.4) — — (7.4) Effects of foreign exchange (1.7) — — — (0.7) — — (2.4) Other — — — — 0.4 — 0.9 1.3 Balance — December 31, 2022 20.5 — — — 73.5 — (42.3) 51.7 Charged (credited) to net earnings 2.1 — — — (8.0) — — (5.9) Effects of foreign exchange 0.5 — — — (0.7) — — (0.2) Other — — — — — — (3.4) (3.4) Balance — December 31, 2023 $ 23.1 $ — $ — $ — $ 64.8 $ — $ (45.7) $ 42.2 |
Financial Instruments and Risk
Financial Instruments and Risk Management (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Financial Instruments [Abstract] | |
Disclosure of Detailed Information about Cash and Cash Equivalents | Cash and cash equivalents are comprised of the following: December 31 2022 2023 Cash $ 364.0 $ 366.8 Cash equivalents 10.5 3.6 $ 374.5 $ 370.4 |
Disclosure of Risks from Financial Instruments | The local currency amounts have been converted to U.S. dollar equivalents using spot rates at December 31, 2023. Canadian Euro Thai baht Mexican peso Cash and cash equivalents $ (0.2) $ 15.6 $ 6.3 $ 1.4 A/R 0.2 55.6 0.1 — Income taxes and value-added taxes receivable — 0.7 1.4 64.3 Other financial assets — 5.6 1.2 0.9 Pension and non-pension post-employment liabilities (50.1) (0.9) (20.8) (5.3) Income taxes and value-added taxes payable (2.5) (0.8) — (12.7) A/P and certain accrued and other liabilities and provisions (69.7) (46.9) (53.3) (22.1) Net financial assets (liabilities) $ (122.3) $ 28.9 $ (65.1) $ 26.5 |
Disclosure of Foreign Currency Risk Analysis | The financial impact of a one-percentage point strengthening or weakening of the following currencies against the U.S. dollar for our financial instruments denominated in such non-functional currencies is summarized in the following table as at December 31, 2023. The financial instruments impacted by a change in exchange rates include our exposures to the above financial assets or liabilities denominated in non-functional currencies and our foreign exchange forward contracts and swaps. Canadian Euro Thai baht Mexican peso Increase (decrease) 1% Strengthening Net earnings $ (0.4) $ — $ (0.3) $ — OCI $ 1.2 $ (0.2) $ 1.1 $ 0.4 1% Weakening Net earnings $ 0.4 $ — $ 0.3 $ — OCI $ (1.2) $ 0.2 $ (1.1) $ (0.4) |
Disclosure of Fair Value Measurement of Assets | In the table below, we have segregated our financial assets and liabilities that are measured at fair value, based on the inputs used to determine fair value at the measurement date. The three levels within the fair value hierarchy, based on the reliability of inputs, are as follows: • Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities; • Level 2 inputs are inputs other than quoted prices included in Level 1 that are observable for the asset or liability either directly ( i.e. prices) or indirectly ( i.e. derived from prices); and • Level 3 inputs are inputs for the asset or liability that are not based on observable market data ( i.e. unobservable inputs). December 31, 2022 December 31, 2023 Note Level 1 Level 2 Level 1 Level 2 Assets: Interest rate swaps 9 $ — $ 18.7 $ — $ 13.2 Foreign currency forwards and swaps — 18.9 — 15.8 TRS — — — 40.6 $ — $ 37.6 $ — $ 69.6 Liabilities: Foreign currency forwards and swaps — (13.7) — (9.3) $ — $ (13.7) $ — $ (9.3) |
Disclosure of Fair Value Measurement of Liabilities | In the table below, we have segregated our financial assets and liabilities that are measured at fair value, based on the inputs used to determine fair value at the measurement date. The three levels within the fair value hierarchy, based on the reliability of inputs, are as follows: • Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities; • Level 2 inputs are inputs other than quoted prices included in Level 1 that are observable for the asset or liability either directly ( i.e. prices) or indirectly ( i.e. derived from prices); and • Level 3 inputs are inputs for the asset or liability that are not based on observable market data ( i.e. unobservable inputs). December 31, 2022 December 31, 2023 Note Level 1 Level 2 Level 1 Level 2 Assets: Interest rate swaps 9 $ — $ 18.7 $ — $ 13.2 Foreign currency forwards and swaps — 18.9 — 15.8 TRS — — — 40.6 $ — $ 37.6 $ — $ 69.6 Liabilities: Foreign currency forwards and swaps — (13.7) — (9.3) $ — $ (13.7) $ — $ (9.3) |
Disclosure of Derivatives and Hedging Activities | At December 31, 2023 and December 31, 2022, we had foreign currency forwards and swaps to trade U.S. dollars in exchange for the following currencies: As at December 31, 2023 Currency Contract amount Weighted average (i) Maximum Fair value Canadian dollar $ 202.1 0.75 12 $ 3.9 Thai baht 156.3 0.03 12 2.9 Malaysian ringgit 93.6 0.22 12 (1.5) Mexican peso 86.9 0.06 12 1.8 British pound 2.7 1.26 4 (0.1) Chinese renminbi 30.2 0.14 12 0.1 Euro 48.3 1.09 12 (1.4) Romanian leu 42.2 0.22 12 0.9 Singapore dollar 29.4 0.75 12 0.3 Japanese yen 5.1 0.0069 4 (0.2) Korean won 3.6 0.0008 4 (0.2) Total (ii) $ 700.4 $ 6.5 As at December 31, 2022 Currency Contract amount Weighted average (i) Maximum Fair value Canadian dollar $ 194.2 0.75 12 $ (1.9) Thai baht 138.0 0.03 12 6.8 Malaysian ringgit 127.8 0.22 12 1.3 Mexican peso 56.6 0.05 12 0.9 British pound 2.6 1.18 4 (0.2) Chinese renminbi 45.7 0.15 12 0.4 Euro 46.2 1.04 8 (3.4) Romanian leu 37.3 0.20 12 1.5 Singapore dollar 24.7 0.72 12 1.1 Japanese yen 6.8 0.0072 4 (0.6) Korean won 4.8 0.0008 4 (0.7) Total (ii) $ 684.7 $ 5.2 (i) Represents the U.S. dollar equivalent (not in millions) of one unit of the foreign currency, weighted based on the notional amounts of the underlying foreign currency forward and swap contracts outstanding at December 31, 2023 or December 31, 2022, as applicable. (ii) As of December 31, 2023, the fair value of outstanding foreign currency forward and swap contracts related to effective cash flow hedges where we applied hedge accounting was a gain of $6.1 (December 31, 2022 — gain of $6.6), and the fair value of outstanding foreign currency forward and swap contracts related to economic hedges where we recorded the changes in the fair values of such contracts through our consolidated statement of operations was a gain of $0.4 (December 31, 2022 — loss of $1.4). |
Weighted Average Number of Sh_2
Weighted Average Number of Shares Diluted (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Earnings per share [abstract] | |
Disclosure of Weighted Average Diluted Shares | (in millions) 2021 2022 2023 Weighted average number of shares (basic) 126.7 123.5 120.1 Dilutive effect of outstanding awards under SBC plans — 0.1 0.2 Weighted average number of shares (diluted) 126.7 123.6 120.3 |
Commitments, Contingencies an_2
Commitments, Contingencies and Guarantees (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Other Provisions, Contingent Liabilities And Contingent Assets [Abstract] | |
Disclosure of Detailed Information About Leases | At December 31, 2023, the contractual undiscounted cash flows for lease obligations recognized as of such date were as follows: Years ending December 31 2024 $ 43.8 2025 37.5 2026 31.0 2027 21.5 2028 17.1 Thereafter 67.4 $ 218.3 Other lease-related expenses that were recognized in the consolidated statement of operations are as follows: Year ended December 31 2021 2022 2023 Interest expense on lease obligations $ 6.6 $ 8.1 $ 9.6 Variable lease payments not included in the measurement of lease obligations $ 0.9 $ 1.2 $ 0.7 Expenses relating to short-term leases or low-value leases $ 1.5 $ 1.8 $ 1.4 At December 31, 2023, we had commitments (not recognized as liabilities as of such date) under IT support agreements that require future minimum payments as follows: 2024 $ 22.6 2025 18.3 2026 12.8 2027 11.4 2028 9.7 Thereafter 15.3 Total future minimum payments $ 90.1 |
Segment and Geographic Inform_2
Segment and Geographic Information (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Operating Segments [Abstract] | |
Revenues by Reportable Segment | Information regarding each reportable segment for the periods indicated is set forth below: Revenue by segment: Year ended December 31 2021 2022 2023 % of Total % of Total % of Total ATS $ 2,315.1 41% $ 2,979.0 41% $ 3,319.8 42% CCS 3,319.6 59% 4,271.0 59% 4,641.2 58% Communications revenue as a % of total revenue 40 % 40 % 33 % Enterprise revenue as a % of total revenue 19 % 19 % 25 % Total $ 5,634.7 $ 7,250.0 $ 7,961.0 |
Information by Reportable Segment | Segment income, segment margin, and reconciliation of segment income to IFRS earnings before income taxes: Year ended December 31 2021 2022 2023 Segment Margin Segment Margin Segment Margin ATS segment income and margin $ 105.0 4.5 % $ 140.9 4.7 % $ 156.1 4.7 % CCS segment income and margin 128.9 3.9 % 217.1 5.1 % 289.1 6.2 % Total segment income 233.9 358.0 445.2 Reconciling items: Finance costs 31.7 59.7 76.6 Employee SBC expense (note 12) 33.4 51.0 55.6 TRS FVAs (gains) (note 12) — — (45.6) Amortization of intangible assets (excluding computer software) 22.5 37.0 36.8 Other charges, net of recoveries (note 15) 10.3 6.7 15.2 IFRS earnings before income taxes $ 136.0 $ 203.6 $ 306.6 |
Disclosure of Geographical Areas | The following table details our external revenue allocated by manufacturing location among countries that generated 10% or more of total revenue for the years indicated: Year ended December 31 2021 2022 2023 Thailand 36 % 44 % 46 % China 16 % 11 % * Malaysia 13 % 12 % 11 % Canada * * * * Less than 10%. The following table details our allocation of PP&E and ROU assets among countries that represented 10% or more of total PP&E and ROU assets for the years indicated: December 31 2022 2023 Thailand 18 % 25 % United States 25 % 24 % Canada * * * Less than 10%. The following table details our allocation of intangible assets and goodwill among countries that represented 10% or more of total intangible assets and goodwill for the years indicated: December 31 2022 2023 United States 48 % 48 % Singapore 42 % 41 % Canada * * * Less than 10%. |
Basis of Preparation and Mate_4
Basis of Preparation and Material Accounting Policies - Schedule of useful lives of PP&E and ROU Assets (Details) | 12 Months Ended |
Dec. 31, 2023 | |
Buildings | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Estimated useful life of property, plant and equipment | 40 years |
Building/leasehold improvements | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Estimated useful life of property, plant and equipment | 40 years |
Machinery and equipment | Top of range | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Estimated useful life of property, plant and equipment | 15 years |
Machinery and equipment | Bottom of range | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Estimated useful life of property, plant and equipment | 3 years |
Basis of Preparation and Mate_5
Basis of Preparation and Material Accounting Policies - Schedule of useful life of intangible assets (Details) | 12 Months Ended |
Dec. 31, 2023 | |
Intellectual property | Top of range | |
Disclosure of detailed information about intangible assets [line items] | |
Estimated useful life of intangible assets | 5 years |
Intellectual property | Bottom of range | |
Disclosure of detailed information about intangible assets [line items] | |
Estimated useful life of intangible assets | 3 years |
Other intangible assets | Top of range | |
Disclosure of detailed information about intangible assets [line items] | |
Estimated useful life of intangible assets | 15 years |
Other intangible assets | Bottom of range | |
Disclosure of detailed information about intangible assets [line items] | |
Estimated useful life of intangible assets | 4 years |
Computer software assets | Top of range | |
Disclosure of detailed information about intangible assets [line items] | |
Estimated useful life of intangible assets | 10 years |
Computer software assets | Bottom of range | |
Disclosure of detailed information about intangible assets [line items] | |
Estimated useful life of intangible assets | 1 year |
Basis of Preparation and Mate_6
Basis of Preparation and Material Accounting Policies - Narrative (Details) - USD ($) shares in Millions, $ in Millions | 1 Months Ended | 3 Months Ended | 12 Months Ended | |
Dec. 15, 2022 | Sep. 30, 2023 | Mar. 31, 2024 | Dec. 31, 2023 | |
Changes in tax rates or tax laws enacted or announced | ||||
Disclosure of detailed information about intangible assets [line items] | ||||
Incremental income taxes | $ 6 | |||
SVS | ||||
Disclosure of detailed information about intangible assets [line items] | ||||
Conversion rate, numerator (in shares) | 1 | |||
Total Return Swap Agreement | SVS | ||||
Disclosure of detailed information about intangible assets [line items] | ||||
Notional amount of SVS (in shares) | 3 | 2.5 | ||
Options | ||||
Disclosure of detailed information about intangible assets [line items] | ||||
Vesting period | 4 years | |||
RSUs | ||||
Disclosure of detailed information about intangible assets [line items] | ||||
Vesting period | 3 years | |||
Conversion rate, numerator (in shares) | 1 | |||
PSUs | ||||
Disclosure of detailed information about intangible assets [line items] | ||||
Vesting period | 3 years | |||
Award requisite service period | 3 years | |||
PSUs | Share-based payment arrangements | ||||
Disclosure of detailed information about intangible assets [line items] | ||||
Vesting period | 3 years | |||
PSUs | Top of range | ||||
Disclosure of detailed information about intangible assets [line items] | ||||
Vesting (as a) percentage | 200% | |||
PSUs | Bottom of range | ||||
Disclosure of detailed information about intangible assets [line items] | ||||
Vesting (as a) percentage | 0% | |||
DSUs | ||||
Disclosure of detailed information about intangible assets [line items] | ||||
Conversion rate, numerator (in shares) | 1 | |||
DSUs | Top of range | ||||
Disclosure of detailed information about intangible assets [line items] | ||||
Percentage of annual fees paid to Board of Directors in cash (percent) | 50% | |||
DSUs | Bottom of range | ||||
Disclosure of detailed information about intangible assets [line items] | ||||
Percentage of annual fees paid to Board of Directors in cash (percent) | 0% | |||
Percentage of annual fees paid to Board of Directors paid in form of awards (percent) | 100% | |||
DSUs | Middle Of Range | ||||
Disclosure of detailed information about intangible assets [line items] | ||||
Percentage of annual fees paid to Board of Directors in cash (percent) | 25% | |||
Vested in year 1 | Options | ||||
Disclosure of detailed information about intangible assets [line items] | ||||
Vesting (as a) percentage | 25% | |||
Vested in year 1 | RSUs | ||||
Disclosure of detailed information about intangible assets [line items] | ||||
Vesting (as a) percentage | 33.33% | |||
Vested in year 2 | Options | ||||
Disclosure of detailed information about intangible assets [line items] | ||||
Vesting (as a) percentage | 25% | |||
Vested in year 2 | RSUs | ||||
Disclosure of detailed information about intangible assets [line items] | ||||
Vesting (as a) percentage | 33.33% | |||
Vested in year 3 | Options | ||||
Disclosure of detailed information about intangible assets [line items] | ||||
Vesting (as a) percentage | 25% | |||
Vested in year 3 | RSUs | ||||
Disclosure of detailed information about intangible assets [line items] | ||||
Vesting (as a) percentage | 33.33% | |||
Vested in year 4 | Options | ||||
Disclosure of detailed information about intangible assets [line items] | ||||
Vesting (as a) percentage | 25% |
Acquisitions - Narrative (Detai
Acquisitions - Narrative (Details) $ in Millions | 3 Months Ended | 12 Months Ended | |||
Mar. 31, 2022 USD ($) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Nov. 01, 2021 USD ($) facility | |
Disclosure of detailed information about business combination [line items] | |||||
Costs related to acquisition activities | $ 7.3 | ||||
PCI | |||||
Disclosure of detailed information about business combination [line items] | |||||
Percentage of voting equity interests acquired | 100% | ||||
Number of manufacturing facilities | facility | 5 | ||||
Consideration transferred, acquisition-date fair value | $ 314.7 | ||||
Cash acquired | $ 11.4 | ||||
Increase (decrease) in goodwill | $ 2.2 | ||||
Customer intangible assets acquired | $ 18 | ||||
Costs related to acquisition activities | $ 0.4 | 4.8 | |||
PCI | Deferred income taxes liability | |||||
Disclosure of detailed information about business combination [line items] | |||||
Changes to preliminary purchase price allocation | 0.5 | ||||
PCI | Customer Intangible Assets | |||||
Disclosure of detailed information about business combination [line items] | |||||
Changes to preliminary purchase price allocation | $ 2.7 | ||||
Impakt | |||||
Disclosure of detailed information about business combination [line items] | |||||
Adjustment of acquisition costs related to indirect tax liabilities recognized | $ 1.2 | ||||
Potential Acquisitions | |||||
Disclosure of detailed information about business combination [line items] | |||||
Costs related to acquisition activities | $ 1 |
Acquisitions - Purchase Price A
Acquisitions - Purchase Price Allocation (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 | Nov. 01, 2021 |
Disclosure of detailed information about business combination [line items] | |||
Goodwill | $ 321.7 | $ 321.8 | |
PCI | |||
Disclosure of detailed information about business combination [line items] | |||
Accounts receivable and other current assets | $ 68.9 | ||
Inventories | 83.6 | ||
PP&E | 22.8 | ||
Customer intangible assets | 176.1 | ||
Other non-current assets | 6.9 | ||
Goodwill | 123.8 | ||
Accounts payable and accrued liabilities | (121.3) | ||
Other current liabilities | (8.1) | ||
Deferred income taxes and other long-term liabilities | (38) | ||
Identifiable net assets acquired | $ 314.7 |
Accounts Receivable (Details)
Accounts Receivable (Details) | 1 Months Ended | 12 Months Ended | |
Sep. 30, 2022 USD ($) | Dec. 31, 2023 USD ($) program | Dec. 31, 2022 USD ($) | |
Derecognition of Financial Assets by Type of Transfer [Line Items] | |||
Number of supplier financing programs | program | 3 | ||
Contract assets | $ 250,800,000 | $ 292,900,000 | |
Factoring of receivables from facility program | |||
Derecognition of Financial Assets by Type of Transfer [Line Items] | |||
Agreement to sell trade receivables, maximum capacity | $ 405,000,000 | ||
Extension term | 1 year | ||
Notice before termination | 3 months | ||
Accounts receivable sold during period | $ 0 | 245,600,000 | |
Factoring of receivables from supplier financing program | |||
Derecognition of Financial Assets by Type of Transfer [Line Items] | |||
Accounts receivable sold during period | $ 18,600,000 | $ 105,600,000 | |
CCS Segment Customer | |||
Derecognition of Financial Assets by Type of Transfer [Line Items] | |||
Number of supplier financing programs | program | 1 | ||
ATS Segment Customer | |||
Derecognition of Financial Assets by Type of Transfer [Line Items] | |||
Number of supplier financing programs | program | 2 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Classes of current inventories [abstract] | ||
Raw materials | $ 1,885.5 | $ 2,130.6 |
Work in progress | 93.6 | 84.1 |
Finished goods | 127 | 135.6 |
Current inventories | $ 2,106.1 | $ 2,350.3 |
Inventories - Narrative (Detail
Inventories - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Classes of current inventories [abstract] | |||
Net inventory provision | $ 57.6 | $ 30.5 | $ 4.9 |
Inventory write down, percentage related to specified aged inventory (percent) | 66.67% | ||
Inventory write-down | 7.2 | ||
Reversal of inventory write-down | $ 2.3 | ||
Deposits from customers | $ 904.8 | $ 825.6 |
Property, Plant and Equipment -
Property, Plant and Equipment - Schedule of Property Plant and Equipment (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property, plant and equipment | $ 472.7 | $ 371.5 | $ 338.7 |
Cost | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property, plant and equipment | 1,375.5 | 1,217 | |
Accumulated Depreciation and Impairment | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property, plant and equipment | (902.8) | (845.5) | |
Land | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property, plant and equipment | 21.7 | 22.2 | 23.2 |
Land | Cost | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property, plant and equipment | 33.7 | 34.2 | |
Land | Accumulated Depreciation and Impairment | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property, plant and equipment | (12) | (12) | |
Buildings including improvements | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property, plant and equipment | 151.4 | 139.1 | 155.5 |
Buildings including improvements | Cost | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property, plant and equipment | 402.2 | 374.6 | |
Buildings including improvements | Accumulated Depreciation and Impairment | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property, plant and equipment | (250.8) | (235.5) | |
Machinery and equipment | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property, plant and equipment | 299.6 | 210.2 | $ 160 |
Machinery and equipment | Cost | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property, plant and equipment | 939.6 | 808.2 | |
Machinery and equipment | Accumulated Depreciation and Impairment | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property, plant and equipment | $ (640) | $ (598) |
Property, Plant and Equipment_2
Property, Plant and Equipment - Changes to the Net Book Value (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Reconciliation of changes in property, plant and equipment [abstract] | ||
Property, plant and equipment, beginning balance | $ 371.5 | $ 338.7 |
Additions | 190.2 | 116.2 |
Depreciation | (83.8) | (69.2) |
Accelerated depreciation of assets and other disposals | (5.3) | (12.1) |
Foreign exchange and other | 0.1 | (2.1) |
Property, plant and equipment, ending balance | 472.7 | 371.5 |
Land | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Property, plant and equipment, beginning balance | 22.2 | 23.2 |
Additions | 0 | 0 |
Depreciation | 0 | 0 |
Accelerated depreciation of assets and other disposals | 0 | 0 |
Foreign exchange and other | (0.5) | (1) |
Property, plant and equipment, ending balance | 21.7 | 22.2 |
Buildings including improvements | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Property, plant and equipment, beginning balance | 139.1 | 155.5 |
Additions | 39.2 | 16.5 |
Depreciation | (23.6) | (22.1) |
Accelerated depreciation of assets and other disposals | (2.8) | (10.1) |
Foreign exchange and other | (0.5) | (0.7) |
Property, plant and equipment, ending balance | 151.4 | 139.1 |
Buildings including improvements | Asia | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Accelerated depreciation of assets and other disposals | 8.1 | |
Machinery and equipment | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Property, plant and equipment, beginning balance | 210.2 | 160 |
Additions | 151 | 99.7 |
Depreciation | (60.2) | (47.1) |
Accelerated depreciation of assets and other disposals | (2.5) | (2) |
Foreign exchange and other | 1.1 | (0.4) |
Property, plant and equipment, ending balance | 299.6 | 210.2 |
Construction in progress | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Property, plant and equipment, beginning balance | 19.7 | |
Property, plant and equipment, ending balance | $ 35 | $ 19.7 |
Right-Of-Use Assets (Details)
Right-Of-Use Assets (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Right-Of-Use Asset [Roll Forward] | ||
Beginning balance | $ 138.8 | $ 113.8 |
New leases and lease renewals | 53.7 | 63.4 |
Depreciation | (37) | (35.4) |
Accelerated depreciation of assets and lease terminations | (1.1) | (0.7) |
Foreign exchange and other | (0.4) | (2.3) |
Ending balance | 154 | 138.8 |
Land | ||
Right-Of-Use Asset [Roll Forward] | ||
Beginning balance | 10.1 | 10.7 |
New leases and lease renewals | 0.4 | 0 |
Depreciation | (0.6) | (0.6) |
Accelerated depreciation of assets and lease terminations | 0 | 0 |
Foreign exchange and other | 0 | 0 |
Ending balance | 9.9 | 10.1 |
Buildings | ||
Right-Of-Use Asset [Roll Forward] | ||
Beginning balance | 126.8 | 101 |
New leases and lease renewals | 52.9 | 63 |
Depreciation | (35.9) | (34.3) |
Accelerated depreciation of assets and lease terminations | (1.1) | (0.7) |
Foreign exchange and other | (0.4) | (2.2) |
Ending balance | 142.3 | 126.8 |
Other | ||
Right-Of-Use Asset [Roll Forward] | ||
Beginning balance | 1.9 | 2.1 |
New leases and lease renewals | 0.4 | 0.4 |
Depreciation | (0.5) | (0.5) |
Accelerated depreciation of assets and lease terminations | 0 | 0 |
Foreign exchange and other | 0 | (0.1) |
Ending balance | $ 1.8 | $ 1.9 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets - Summary of Goodwill and Intangible Assets (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | ||
Goodwill | $ 321.7 | $ 321.8 |
Intangible assets | 318.3 | 346.5 |
Intellectual property | ||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | ||
Intangible assets | 0 | 0 |
Other intangible assets | ||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | ||
Intangible assets | 300.4 | 337.2 |
Computer software assets | ||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | ||
Intangible assets | 17.9 | 9.3 |
Cost | ||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | ||
Goodwill | 377.1 | 377.2 |
Intangible assets | 1,094.4 | 1,091.3 |
Cost | Intellectual property | ||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | ||
Intangible assets | 111.3 | 111.3 |
Cost | Other intangible assets | ||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | ||
Intangible assets | 672.3 | 679.3 |
Cost | Computer software assets | ||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | ||
Intangible assets | 310.8 | 300.7 |
Accumulated Amortization and Impairment | ||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | ||
Goodwill | (55.4) | (55.4) |
Intangible assets | (776.1) | (744.8) |
Accumulated Amortization and Impairment | Intellectual property | ||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | ||
Intangible assets | (111.3) | (111.3) |
Accumulated Amortization and Impairment | Other intangible assets | ||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | ||
Intangible assets | (371.9) | (342.1) |
Accumulated Amortization and Impairment | Computer software assets | ||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | ||
Intangible assets | $ (292.9) | $ (291.4) |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets - Changes to the Net Book Value of Goodwill and Intangible Assets (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Changes in intangible assets and goodwill [abstract] | ||||
Goodwill at beginning of period | $ 321.8 | |||
Intangible assets, beginning balance | $ 706.2 | 668.3 | $ 706.2 | |
Additions | 11.4 | 1.9 | ||
Adjustment to acquisitions through business combination | 0.5 | |||
Amortization | (39.6) | (40.1) | $ (25.5) | |
Foreign exchange and other | (0.1) | (0.2) | ||
Goodwill at end of period | 321.7 | 321.8 | ||
Intangible assets, ending balance | 640 | 668.3 | 706.2 | |
PCI | ||||
Changes in intangible assets and goodwill [abstract] | ||||
Adjustment to acquisitions through business combination - goodwill | (2.2) | |||
PCI | Customer Intangible Assets | ||||
Changes in intangible assets and goodwill [abstract] | ||||
Changes to preliminary purchase price allocation | 2.7 | |||
Goodwill | ||||
Changes in intangible assets and goodwill [abstract] | ||||
Goodwill at beginning of period | 324.2 | 321.8 | 324.2 | |
Adjustment to acquisitions through business combination - goodwill | (2.2) | |||
Foreign exchange and other | (0.1) | (0.2) | ||
Goodwill at end of period | 321.7 | 321.8 | 324.2 | |
Other intangible assets | ||||
Changes in intangible assets and goodwill [abstract] | ||||
Intangible assets, beginning balance | 371.5 | 337.2 | 371.5 | |
Additions | 0 | 0 | ||
Adjustment to acquisitions through business combination | 2.7 | |||
Amortization | (36.8) | (37) | ||
Foreign exchange and other | 0 | 0 | ||
Intangible assets, ending balance | 300.4 | 337.2 | 371.5 | |
Computer software assets | ||||
Changes in intangible assets and goodwill [abstract] | ||||
Intangible assets, beginning balance | $ 10.5 | 9.3 | 10.5 | |
Additions | 11.4 | 1.9 | ||
Adjustment to acquisitions through business combination | 0 | |||
Amortization | (2.8) | (3.1) | ||
Foreign exchange and other | 0 | 0 | ||
Intangible assets, ending balance | $ 17.9 | $ 9.3 | $ 10.5 |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets - Narrative (Details) - USD ($) | 12 Months Ended | ||||||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Nov. 01, 2021 | Nov. 30, 2018 | Apr. 30, 2018 | Nov. 30, 2016 | |
Disclosure of reconciliation of changes in goodwill [line items] | |||||||
Impairment loss recognised in profit or loss, intangible assets and goodwill | $ 0 | $ 0 | $ 0 | ||||
Term of strategic plan | 3 years | ||||||
Term used to extrapolate cash flow projections (in years) | 5 years | ||||||
Growth rate used to extrapolate cash flow projections (percentage) | 2% | ||||||
Goodwill | $ 321,700,000 | $ 321,800,000 | |||||
Impakt Acquisition | |||||||
Disclosure of reconciliation of changes in goodwill [line items] | |||||||
Goodwill | $ 112,100,000 | ||||||
Acquisitions prior to Impakt acquisition | |||||||
Disclosure of reconciliation of changes in goodwill [line items] | |||||||
Goodwill | $ 19,500,000 | ||||||
Karel | |||||||
Disclosure of reconciliation of changes in goodwill [line items] | |||||||
Goodwill | $ 3,700,000 | ||||||
Atrenne | |||||||
Disclosure of reconciliation of changes in goodwill [line items] | |||||||
Goodwill | $ 62,600,000 | ||||||
PCI | |||||||
Disclosure of reconciliation of changes in goodwill [line items] | |||||||
Goodwill | $ 123,800,000 |
Goodwill and Intangible Asset_5
Goodwill and Intangible Assets - Assumptions for Our Annual Impairment Assessments of Goodwill (Details) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Disclosure of information for cash-generating units [line items] | |||
Annual revenue growth rate (percentage) | 2% | ||
Term used to extrapolate cash flow projections (in years) | 5 years | ||
Capital Equipment CGU | |||
Disclosure of information for cash-generating units [line items] | |||
Annual revenue growth rate (percentage) | 12% | 9% | 10% |
Term used to extrapolate cash flow projections (in years) | 5 years | 5 years | 5 years |
Discount rate (percentage) | 14% | 14% | 11% |
Pre-tax discount rate (percentage) | 18% | ||
A&D CGU | |||
Disclosure of information for cash-generating units [line items] | |||
Annual revenue growth rate (percentage) | 9% | 12% | 11% |
Term used to extrapolate cash flow projections (in years) | 5 years | 5 years | 5 years |
Discount rate (percentage) | 12% | 12% | 11% |
Pre-tax discount rate (percentage) | 15% | ||
Atrenne CGU | |||
Disclosure of information for cash-generating units [line items] | |||
Annual revenue growth rate (percentage) | 19% | ||
Term used to extrapolate cash flow projections (in years) | 5 years | ||
Discount rate (percentage) | 10% | ||
PCI CGU | |||
Disclosure of information for cash-generating units [line items] | |||
Annual revenue growth rate (percentage) | 11% | 11% | 9% |
Term used to extrapolate cash flow projections (in years) | 5 years | 5 years | 5 years |
Discount rate (percentage) | 15% | 15% | 15% |
Pre-tax discount rate (percentage) | 17% |
Other Non-Current Assets (Detai
Other Non-Current Assets (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Subclassifications of assets, liabilities and equities [abstract] | ||
Net pension assets | $ 5.3 | $ 7.1 |
Land rights | 6.9 | 7.3 |
Deferred investment costs | 9.3 | 1.7 |
Deferred financing costs | 1.1 | 1.5 |
Interest rate swap derivative | 11 | 18.7 |
Other | 15.3 | 17.2 |
Other non-current assets | $ 48.9 | $ 53.5 |
Provisions (Details)
Provisions (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Reconciliation of changes in other provisions [abstract] | ||
Beginning balance | $ 47 | |
Provisions | 34.1 | |
Reversal of prior year provisions | (4.9) | |
Payments/usage | (15.1) | |
Accretion, foreign exchange and other | 0.3 | |
Ending balance | 61.4 | |
Current | 23.6 | $ 17.9 |
Non-current | 37.8 | |
Total provisions | 61.4 | |
Restructuring | ||
Reconciliation of changes in other provisions [abstract] | ||
Beginning balance | 5.8 | |
Provisions | 9.6 | |
Reversal of prior year provisions | 0 | |
Payments/usage | (11.8) | |
Accretion, foreign exchange and other | 0 | |
Ending balance | 3.6 | |
Current | 3.6 | |
Non-current | 0 | |
Total provisions | 3.6 | |
Warranty | ||
Reconciliation of changes in other provisions [abstract] | ||
Beginning balance | 31.8 | |
Provisions | 19.6 | |
Reversal of prior year provisions | (4.9) | |
Payments/usage | (3) | |
Accretion, foreign exchange and other | 0.1 | |
Ending balance | 43.6 | |
Current | 16 | |
Non-current | 27.6 | |
Total provisions | 43.6 | |
Legal | ||
Reconciliation of changes in other provisions [abstract] | ||
Beginning balance | 0.8 | |
Provisions | 3.2 | |
Reversal of prior year provisions | 0 | |
Payments/usage | 0 | |
Accretion, foreign exchange and other | 0 | |
Ending balance | 4 | |
Current | 4 | |
Non-current | 0 | |
Total provisions | 4 | |
Other | ||
Reconciliation of changes in other provisions [abstract] | ||
Beginning balance | 8.6 | |
Provisions | 1.7 | |
Reversal of prior year provisions | 0 | |
Payments/usage | (0.3) | |
Accretion, foreign exchange and other | 0.2 | |
Ending balance | 10.2 | |
Current | 0 | |
Non-current | 10.2 | |
Total provisions | $ 10.2 |
Credit Facilities and Lease O_3
Credit Facilities and Lease Obligations - Narrative (Details) - USD ($) | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||||||||||||||||
Dec. 06, 2021 | Dec. 31, 2021 | Oct. 31, 2021 | Dec. 31, 2023 | Sep. 30, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Mar. 31, 2021 | Dec. 31, 2024 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 05, 2021 | Dec. 31, 2020 | |
Disclosure of detailed information about borrowings [line items] | |||||||||||||||||||
Default on borrowings | $ 0 | $ 0 | $ 0 | ||||||||||||||||
New credit facility | Bottom of range | |||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||||||||
Repayments of borrowings, percentage of excess cash flow (percent) | 0% | ||||||||||||||||||
New credit facility | Top of range | |||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||||||||
Repayments of borrowings, percentage of excess cash flow (percent) | 50% | ||||||||||||||||||
Term Loans | |||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||||||||
Borrowings | $ 660,400,000 | $ 608,900,000 | $ 627,200,000 | $ 660,400,000 | 608,900,000 | 627,200,000 | 660,400,000 | $ 470,400,000 | |||||||||||
Repayments of borrowings | 4,562,500 | $ 4,562,500 | $ 4,562,500 | $ 4,562,500 | 19,562,500 | $ 4,562,500 | $ 4,562,500 | $ 4,562,500 | 145,000,000 | $ 30,000,000 | 18,300,000 | 33,200,000 | 175,000,000 | ||||||
Proceeds from borrowings | 365,000,000 | 0 | 0 | 365,000,000 | |||||||||||||||
Initial Term Loan | |||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||||||||
Borrowings | $ 350,000,000 | $ 280,400,000 | 280,400,000 | $ 280,400,000 | 280,400,000 | ||||||||||||||
Repayments of borrowings | 875,000 | ||||||||||||||||||
Repayments of current borrowings | 15,000,000 | ||||||||||||||||||
Initial Term Loan | London Interbank Offered Rate LIBOR | |||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||||||||
Margin for borrowings (percent) | 2.125% | ||||||||||||||||||
Initial Term Loan | Secured Overnight Financing Rate | |||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||||||||
Margin for borrowings (percent) | 2.125% | 2.125% | |||||||||||||||||
Incremental Term Loan | |||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||||||||
Borrowings | $ 328,500,000 | 346,800,000 | $ 328,500,000 | 346,800,000 | $ 250,000,000 | ||||||||||||||
Repayments of borrowings | $ 0 | 0 | |||||||||||||||||
Periodic payment required | $ 4,562,500 | 4,562,500 | 4,562,500 | 4,562,500 | 4,562,500 | 4,562,500 | 4,562,500 | 4,562,500 | |||||||||||
Incremental Term Loan | Secured Overnight Financing Rate | |||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||||||||
Margin for borrowings (percent) | 1.75% | 1.75% | |||||||||||||||||
Revolver | |||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||||||||
Borrowings | 0 | $ 0 | 0 | 0 | $ 0 | 0 | 0 | $ 450,000,000 | $ 0 | ||||||||||
Repayments of borrowings | $ 0 | $ 0 | $ 0 | ||||||||||||||||
Repayments of current borrowings | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | 220,000,000 | 0 | |||||||||
Proceeds from current borrowings | $ 220,000,000 | $ 220,000,000 | |||||||||||||||||
Revolver | Bottom of range | |||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||||||||
Commitment fees (percent) | 0.35% | ||||||||||||||||||
Revolver | Top of range | |||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||||||||
Commitment fees (percent) | 0.50% | ||||||||||||||||||
Revolver | London Interbank Offered Rate LIBOR | Bottom of range | |||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||||||||
Margin for borrowings (percent) | 0.75% | ||||||||||||||||||
Revolver | London Interbank Offered Rate LIBOR | Top of range | |||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||||||||
Margin for borrowings (percent) | 2.50% | ||||||||||||||||||
First Incremental Term Loan | |||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||||||||
Repayments of borrowings | $ 145,000,000 | $ 30,000,000 | |||||||||||||||||
First Incremental Term Loan | London Interbank Offered Rate LIBOR | |||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||||||||
Margin for borrowings (percent) | 2.50% | ||||||||||||||||||
Second Incremental Term Loan | |||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||||||||
Borrowings | 365,000,000 | ||||||||||||||||||
Quarterly repayment of borrowings | 4,562,500 | ||||||||||||||||||
Proceeds from borrowings | 365,000,000 | ||||||||||||||||||
Revolving Facility Due March 28, 2025 | |||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||||||||
Line of credit, maximum borrowing capacity | 600,000,000 | ||||||||||||||||||
Credit facility accordion feature | 150,000,000 | ||||||||||||||||||
Letters of credit sub-limit | 150,000,000 | ||||||||||||||||||
Revolving Facility Due March 28, 2025 | Bottom of range | |||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||||||||
Commitment fees (percent) | 0.30% | 0.30% | |||||||||||||||||
Revolving Facility Due March 28, 2025 | Top of range | |||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||||||||
Commitment fees (percent) | 0.45% | 0.45% | |||||||||||||||||
Revolving Facility Due March 28, 2025 | London Interbank Offered Rate LIBOR | Bottom of range | |||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||||||||
Margin for borrowings (percent) | 1.50% | 1.50% | |||||||||||||||||
Revolving Facility Due March 28, 2025 | London Interbank Offered Rate LIBOR | Top of range | |||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||||||||
Margin for borrowings (percent) | 2.25% | 2.25% | |||||||||||||||||
Revolving Facility Due March 28, 2025 | Base Rate | Bottom of range | |||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||||||||
Margin for borrowings (percent) | 0.50% | 0.50% | |||||||||||||||||
Revolving Facility Due March 28, 2025 | Base Rate | Top of range | |||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||||||||
Margin for borrowings (percent) | 1.25% | 1.25% | |||||||||||||||||
Revolving Facility Due March 28, 2025 | Secured Overnight Financing Rate | |||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||||||||
Margin for borrowings (percent) | 0.10% | 0.10% | |||||||||||||||||
Revolving Facility Due March 28, 2025 | Bridge Loan | |||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||||||||
Line of credit, maximum borrowing capacity | $ 50,000,000 | ||||||||||||||||||
Revolving Facility Due March 28, 2025 | Bridge Loan | Top of range | |||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||||||||
Debt instrument term | 10 days | ||||||||||||||||||
Forecast | Incremental Term Loan | |||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||||||||
Repayments of borrowings | $ 0 | ||||||||||||||||||
Forecast | Revolver | |||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||||||||
Repayments of borrowings | $ 0 |
Credit Facilities and Lease O_4
Credit Facilities and Lease Obligations - Maturity Schedule (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 06, 2021 | Dec. 31, 2023 | |
Initial Term Loan | ||
Disclosure of detailed information about borrowings [line items] | ||
Repayments of borrowings | $ 875 | |
Initial Term Loan | Cost | ||
Disclosure of detailed information about borrowings [line items] | ||
Repayments of borrowings | $ 280,400 | |
Initial Term Loan | Cost | 2025 | ||
Disclosure of detailed information about borrowings [line items] | ||
Repayments of borrowings | 0 | |
Initial Term Loan | Cost | 2026 | ||
Disclosure of detailed information about borrowings [line items] | ||
Repayments of borrowings | 280,400 | |
Initial Term Loan | Cost | 2027 | ||
Disclosure of detailed information about borrowings [line items] | ||
Repayments of borrowings | 0 | |
Second Incremental Term Loan | Cost | ||
Disclosure of detailed information about borrowings [line items] | ||
Repayments of borrowings | 328,500 | |
Second Incremental Term Loan | Cost | 2025 | ||
Disclosure of detailed information about borrowings [line items] | ||
Repayments of borrowings | 18,250 | |
Second Incremental Term Loan | Cost | 2026 | ||
Disclosure of detailed information about borrowings [line items] | ||
Repayments of borrowings | 18,250 | |
Second Incremental Term Loan | Cost | 2027 | ||
Disclosure of detailed information about borrowings [line items] | ||
Repayments of borrowings | 292,000 | |
Second Incremental Term Loan | Cost | Further mandatory principal repayments | ||
Disclosure of detailed information about borrowings [line items] | ||
Repayments of borrowings | $ 0 |
Credit Facilities and Lease O_5
Credit Facilities and Lease Obligations - Credit Facilities Activity (Details) - USD ($) | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||||||||||||||
Dec. 06, 2021 | Oct. 31, 2021 | Dec. 31, 2023 | Sep. 30, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Activity In Borrowings [Roll Forward] | |||||||||||||||||
Proceeds from (repayments of) borrowings | $ 270,000,000 | $ 140,000,000 | $ 200,000,000 | $ 281,000,000 | $ 300,000,000 | $ 359,000,000 | $ 348,000,000 | $ 228,000,000 | $ 300,000,000 | $ 0 | $ 0 | $ 0 | |||||
Revolver | |||||||||||||||||
Activity In Borrowings [Roll Forward] | |||||||||||||||||
Outstanding balances, beginning of period | $ 450,000,000 | 0 | 0 | 0 | $ 0 | $ 0 | $ 0 | ||||||||||
Repayments of current borrowings | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | (220,000,000) | 0 | |||||||
Amount repaid | 0 | 0 | 0 | ||||||||||||||
Proceeds from current borrowings | $ 220,000,000 | 220,000,000 | |||||||||||||||
Outstanding borrowings, end of period | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||
Term Loans | |||||||||||||||||
Activity In Borrowings [Roll Forward] | |||||||||||||||||
Outstanding balances, beginning of period | 627,200,000 | 660,400,000 | 470,400,000 | 627,200,000 | 660,400,000 | 470,400,000 | |||||||||||
Amount borrowed | 365,000,000 | 0 | 0 | 365,000,000 | |||||||||||||
Amount repaid | (4,562,500) | $ (4,562,500) | $ (4,562,500) | $ (4,562,500) | (19,562,500) | $ (4,562,500) | $ (4,562,500) | $ (4,562,500) | (145,000,000) | $ (30,000,000) | (18,300,000) | (33,200,000) | (175,000,000) | ||||
Outstanding borrowings, end of period | $ 608,900,000 | $ 627,200,000 | $ 660,400,000 | $ 608,900,000 | $ 627,200,000 | $ 660,400,000 |
Credit Facilities and Lease O_6
Credit Facilities and Lease Obligations - Borrowings Under Credit Facilities and Lease Obligations (Details) - USD ($) | 1 Months Ended | 12 Months Ended | |||||
Dec. 31, 2021 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 06, 2021 | Dec. 05, 2021 | Dec. 31, 2020 | |
Borrowings, by type [abstract] | |||||||
Borrowings and lease liabilities | $ 782,800,000 | $ 786,100,000 | |||||
Current portion | 51,600,000 | 52,200,000 | |||||
Long-term portion | 731,200,000 | 733,900,000 | |||||
Letters of credit outstanding | 27,000,000 | 41,800,000 | |||||
Amounts outstanding under available uncommitted bank overdraft facilities | 0 | 0 | |||||
Disclosure Of Notional Amount Of Derivative [Abstract] | |||||||
Notional amounts under interest rate swaps (note 20) | 684,700,000 | ||||||
Accelerated amortization of deferred financing costs | $ 2,600,000 | ||||||
Current lease liabilities | 34,600,000 | 35,100,000 | |||||
Non-current lease liabilities | 141,900,000 | 127,300,000 | |||||
Credit Facility | |||||||
Borrowings, by type [abstract] | |||||||
Outstanding borrowings | (608,900,000) | (627,200,000) | |||||
Revolver | |||||||
Borrowings, by type [abstract] | |||||||
Outstanding borrowings | 0 | 0 | 0 | $ 0 | $ (450,000,000) | $ 0 | |
Disclosure Of Notional Amount Of Derivative [Abstract] | |||||||
Notional amounts under interest rate swaps (note 20) | 0 | 0 | |||||
Term Loans | |||||||
Borrowings, by type [abstract] | |||||||
Outstanding borrowings | $ (660,400,000) | (608,900,000) | (627,200,000) | (660,400,000) | $ (470,400,000) | ||
Disclosure Of Notional Amount Of Derivative [Abstract] | |||||||
Notional amounts under interest rate swaps (note 20) | 330,000,000 | 330,000,000 | |||||
Term Loans | Unamortized debt issuance costs | |||||||
Borrowings, by type [abstract] | |||||||
Outstanding borrowings | (2,600,000) | (3,500,000) | |||||
Term Loans | Aggregate Debt Issuance Costs | |||||||
Disclosure Of Notional Amount Of Derivative [Abstract] | |||||||
Deferred financing costs | 200,000 | 300,000 | 1,800,000 | ||||
Initial Term Loan | |||||||
Borrowings, by type [abstract] | |||||||
Outstanding borrowings | (280,400,000) | (280,400,000) | $ (350,000,000) | ||||
Disclosure Of Notional Amount Of Derivative [Abstract] | |||||||
Notional amounts under interest rate swaps (note 20) | 100,000,000 | 100,000,000 | |||||
Incremental Term Loan | |||||||
Borrowings, by type [abstract] | |||||||
Outstanding borrowings | (328,500,000) | (346,800,000) | $ (250,000,000) | ||||
Disclosure Of Notional Amount Of Derivative [Abstract] | |||||||
Notional amounts under interest rate swaps (note 20) | 230,000,000 | 230,000,000 | |||||
Lease obligations | |||||||
Borrowings, by type [abstract] | |||||||
Lease obligations | 176,500,000 | 162,400,000 | |||||
Outstanding L/Cs and surety bonds outside the Revolver | |||||||
Borrowings, by type [abstract] | |||||||
Letters of credit outstanding | 16,500,000 | 23,800,000 | |||||
Revolving Credit Facility | |||||||
Borrowings, by type [abstract] | |||||||
Outstanding borrowings | 0 | 0 | |||||
Revolving Credit Facility | Aggregate Debt Issuance Costs | |||||||
Disclosure Of Notional Amount Of Derivative [Abstract] | |||||||
Deferred financing costs | 200,000 | 300,000 | $ 2,200,000 | ||||
Revolving Facility Due March 2025 | |||||||
Borrowings, by type [abstract] | |||||||
Letters of credit outstanding | 10,500,000 | 18,000,000 | |||||
Intraday and Overnight Bank Overdraft Facilities | |||||||
Borrowings, by type [abstract] | |||||||
Available uncommitted bank overdraft facilities | $ 198,500,000 | $ 198,500,000 |
Credit Facilities and Lease O_7
Credit Facilities and Lease Obligations - Mandatory Principal Repayments (Details) $ in Millions | Dec. 31, 2023 USD ($) |
Disclosure of detailed information about borrowings [line items] | |
Lease payment, undiscounted | $ 218.3 |
2024 | |
Disclosure of detailed information about borrowings [line items] | |
Lease payment, undiscounted | 43.8 |
2025 | |
Disclosure of detailed information about borrowings [line items] | |
Lease payment, undiscounted | 37.5 |
2026 | |
Disclosure of detailed information about borrowings [line items] | |
Lease payment, undiscounted | 31 |
2027 | |
Disclosure of detailed information about borrowings [line items] | |
Lease payment, undiscounted | 21.5 |
2028 | |
Disclosure of detailed information about borrowings [line items] | |
Lease payment, undiscounted | 17.1 |
Thereafter | |
Disclosure of detailed information about borrowings [line items] | |
Lease payment, undiscounted | $ 67.4 |
Credit Facilities and Lease O_8
Credit Facilities and Lease Obligations - Other Lease Related Expenses (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Borrowings [abstract] | |||
Interest expense on lease obligations | $ 9.6 | $ 8.1 | $ 6.6 |
Variable lease payments not included in the measurement of lease obligations | 0.7 | 1.2 | 0.9 |
Expenses relating to short-term leases or low-value leases | $ 1.4 | $ 1.8 | $ 1.5 |
Capital Stock - Narrative (Deta
Capital Stock - Narrative (Details) $ in Millions | 1 Months Ended | 12 Months Ended | |||||||||
Feb. 29, 2024 shares | Oct. 31, 2023 USD ($) | Dec. 31, 2023 USD ($) shares vote | Dec. 31, 2022 USD ($) shares | Dec. 31, 2021 USD ($) shares | Dec. 12, 2023 shares | Jun. 30, 2023 shares | Dec. 08, 2022 shares | Jul. 31, 2022 shares | Apr. 30, 2022 shares | Dec. 31, 2020 USD ($) shares | |
Disclosure of classes of share capital [line items] | |||||||||||
Employee SBC expense (note 12) | $ | $ 55.6 | $ 51 | $ 33.4 | ||||||||
Risk free interest rate, share options granted | 1.09% | ||||||||||
Expected volatility, share options granted | 43% | ||||||||||
Option life, share options granted | 7 years | ||||||||||
Number of share options granted in share-based payment arrangement (in shares) | 0 | 0 | 90,000 | ||||||||
SBC cash settlement | $ | $ 66.7 | $ 0 | $ 0 | ||||||||
Number of share options exercised in share-based payment arrangement | 20,000 | 20,000 | 20,000 | ||||||||
DSUs | |||||||||||
Disclosure of classes of share capital [line items] | |||||||||||
Conversion rate, numerator (in shares) | 1 | ||||||||||
SBC cash settlement | $ | $ 9.2 | ||||||||||
DSUs | Eamon Ryan | |||||||||||
Disclosure of classes of share capital [line items] | |||||||||||
Number of shares owned (in shares) | 300,000 | ||||||||||
Options | |||||||||||
Disclosure of classes of share capital [line items] | |||||||||||
Expiration period | 10 years | ||||||||||
Vesting period | 4 years | ||||||||||
PSUs | |||||||||||
Disclosure of classes of share capital [line items] | |||||||||||
Employee SBC expense (note 12) | $ | $ 14.7 | $ 12.3 | |||||||||
Vesting period | 3 years | ||||||||||
TSR and Monte Carlo simulation premium | 118% | 116% | 109% | ||||||||
Award requisite service period | 3 years | ||||||||||
RSUs | |||||||||||
Disclosure of classes of share capital [line items] | |||||||||||
Conversion rate, numerator (in shares) | 1 | ||||||||||
Vesting period | 3 years | ||||||||||
RSUs | Eamon Ryan | |||||||||||
Disclosure of classes of share capital [line items] | |||||||||||
Number of shares owned (in shares) | 30,000 | ||||||||||
RSUs & PSUs | |||||||||||
Disclosure of classes of share capital [line items] | |||||||||||
SBC cash settlement | $ | $ 49.8 | ||||||||||
Cash payment for withholding taxes | $ | $ 7.7 | ||||||||||
Bottom of range | PSUs | |||||||||||
Disclosure of classes of share capital [line items] | |||||||||||
Percentage of shares vested dependent on performance achievements (percent) | 0% | ||||||||||
Top of range | PSUs | |||||||||||
Disclosure of classes of share capital [line items] | |||||||||||
Percentage of shares vested dependent on performance achievements (percent) | 200% | ||||||||||
SVS | |||||||||||
Disclosure of classes of share capital [line items] | |||||||||||
Subordinate voting shares, number of votes per share | vote | 1 | ||||||||||
Conversion rate, numerator (in shares) | 1 | ||||||||||
Conversion of MVS into SVS in connection with the Secondary Offerings (in shares) | 18,600,000 | ||||||||||
Number of shares issued (in shares) | 119,000,000 | 103,000,000 | 106,100,000 | 110,500,000 | |||||||
Accrual for repurchase of stock under automatic share purchase plan | $ | $ 2.7 | ||||||||||
Number of SVS repurchased for cancellation (in millions) (in shares) | 2,700,000 | 3,140,000 | 4,400,000 | ||||||||
SVS | LTIP | |||||||||||
Disclosure of classes of share capital [line items] | |||||||||||
Conversion rate, numerator (in shares) | 1 | ||||||||||
Conversion rate, denominator (in shares) | 1 | ||||||||||
Number of shares authorized (in shares) | 29,000,000 | ||||||||||
Shares remaining in reserve for issuance (in shares) | 9,900,000 | ||||||||||
SVS | CSUP | |||||||||||
Disclosure of classes of share capital [line items] | |||||||||||
Conversion rate, numerator (in shares) | 1 | ||||||||||
Conversion rate, denominator (in shares) | 1 | ||||||||||
SVS | 2020 NCIB | |||||||||||
Disclosure of classes of share capital [line items] | |||||||||||
Number of shares authorized to be repurchased (in shares) | 9,000,000 | ||||||||||
Accrual for repurchase of stock under automatic share purchase plan | $ | $ 7.5 | $ 15 | |||||||||
SVS | ASPP | |||||||||||
Disclosure of classes of share capital [line items] | |||||||||||
Number of shares authorized to be repurchased (in shares) | 700,000 | ||||||||||
SVS | 2021 NCIB | |||||||||||
Disclosure of classes of share capital [line items] | |||||||||||
Number of shares authorized to be repurchased (in shares) | 8,800,000 | ||||||||||
SVS | 2021 SBC ASPP | |||||||||||
Disclosure of classes of share capital [line items] | |||||||||||
Accrual for repurchase of stock under automatic share purchase plan | $ | $ 33.8 | ||||||||||
SVS | 2021 SBC ASPP | Top of range | |||||||||||
Disclosure of classes of share capital [line items] | |||||||||||
Stock repurchase program, number of shares remaining | 3,000,000 | ||||||||||
SVS | 2023 SBC ASPP | |||||||||||
Disclosure of classes of share capital [line items] | |||||||||||
Accrual for repurchase of stock under automatic share purchase plan | $ | $ 7.5 | ||||||||||
SVS | 2023 SBC ASPP | Top of range | |||||||||||
Disclosure of classes of share capital [line items] | |||||||||||
Stock repurchase program, number of shares remaining | 300,000 | ||||||||||
SVS | 2023 NCIB | |||||||||||
Disclosure of classes of share capital [line items] | |||||||||||
Number of shares authorized to be repurchased (in shares) | 11,800,000 | ||||||||||
Stock repurchase program, number of shares remaining | 11,800,000 | ||||||||||
SVS | 2023 NCIB | Top of range | |||||||||||
Disclosure of classes of share capital [line items] | |||||||||||
Number of shares authorized to be repurchased (in shares) | 100,000 | ||||||||||
Multiple voting shares | |||||||||||
Disclosure of classes of share capital [line items] | |||||||||||
Subordinate voting shares, number of votes per share | vote | 25 | ||||||||||
Conversion of MVS into SVS in connection with the Secondary Offerings (in shares) | (18,600,000) | ||||||||||
Number of shares issued (in shares) | 0 | 18,600,000 | 18,600,000 | 18,600,000 | |||||||
Number of SVS repurchased for cancellation (in millions) (in shares) | 0 | 0 | 0 | ||||||||
Preferred shares | |||||||||||
Disclosure of classes of share capital [line items] | |||||||||||
Number of shares issued (in shares) | 0 | ||||||||||
Director | |||||||||||
Disclosure of classes of share capital [line items] | |||||||||||
Employee SBC expense (note 12) | $ | $ 2.4 | $ 2.2 | $ 2.1 | ||||||||
Director | DSUs | Carol Perry | |||||||||||
Disclosure of classes of share capital [line items] | |||||||||||
Number of shares owned (in shares) | 200,000 | ||||||||||
Director | DSUs | William A. Etherington | |||||||||||
Disclosure of classes of share capital [line items] | |||||||||||
Number of shares owned (in shares) | 500,000 | ||||||||||
Mr. Robert Mionis | Stock Options Exercised | |||||||||||
Disclosure of classes of share capital [line items] | |||||||||||
Number of share options exercised in share-based payment arrangement | 300,000 |
Capital Stock - Schedule of Cap
Capital Stock - Schedule of Capital Transactions (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Number of Shares Outstanding [Roll Forward] | |||
Proceeds from exercise of options | $ 0.3 | $ 0.2 | $ 0.2 |
SVS | |||
Number of Shares Outstanding [Roll Forward] | |||
Number of shares issued, beginning balance (in shares) | 103,000,000 | 106,100,000 | 110,500,000 |
Number of shares outstanding, beginning balance (in shares) | 103,000,000 | 106,100,000 | 110,500,000 |
Issued from treasury (in shares) | 50,000 | 70,000 | 30,000 |
Cancelled under NCIB (in shares) | (2,700,000) | (3,140,000) | (4,400,000) |
Conversion of MVS into SVS in connection with the Secondary Offerings (in shares) | 18,600,000 | ||
Number of shares issued, ending balance (in shares) | 119,000,000 | 103,000,000 | 106,100,000 |
Number of shares outstanding, ending balance (in shares) | 119,000,000 | 103,000,000 | 106,100,000 |
MVS | |||
Number of Shares Outstanding [Roll Forward] | |||
Number of shares issued, beginning balance (in shares) | 18,600,000 | 18,600,000 | 18,600,000 |
Number of shares outstanding, beginning balance (in shares) | 18,600,000 | 18,600,000 | 18,600,000 |
Issued from treasury (in shares) | 0 | 0 | 0 |
Cancelled under NCIB (in shares) | 0 | 0 | 0 |
Conversion of MVS into SVS in connection with the Secondary Offerings (in shares) | (18,600,000) | ||
Number of shares issued, ending balance (in shares) | 0 | 18,600,000 | 18,600,000 |
Number of shares outstanding, ending balance (in shares) | 0 | 18,600,000 | 18,600,000 |
Options | SVS | |||
Number of Shares Outstanding [Roll Forward] | |||
Shares issued (in shares) | 30,000 | 20,000 | 20,000 |
RSUs | SVS | |||
Number of Shares Outstanding [Roll Forward] | |||
Shares issued (in shares) | 20,000 | 50,000 | 10,000 |
Value of shares issued upon vesting of RSUs | $ 0.2 | $ 0.4 | $ 0.1 |
Capital Stock - Schedule of Rep
Capital Stock - Schedule of Repurchase Activities under NCIB and SVS Held for Delivery under SBC Plans (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 12 Months Ended | ||||||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | ||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||||||
Aggregate cost of SVS repurchased for cancellation | $ 35.6 | $ 34.6 | $ 35.9 | ||||
Aggregate cost of SVS repurchased for delivery under SBC plans | 89.8 | [1] | 11.1 | [2] | 54.4 | [3] | |
SVS | |||||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||||||
Aggregate cost of SVS repurchased for cancellation | $ 35.6 | $ 34.6 | $ 35.9 | ||||
Number of SVS repurchased for cancellation (in millions) (in shares) | 2,600 | 3,400 | 4,400 | ||||
Weighted average price per share for repurchases (in dollars per share) | $ 13.83 | $ 10.45 | $ 8.21 | ||||
Aggregate cost of SVS repurchased for delivery under SBC plans | $ 82.3 | $ 44.9 | $ 20.6 | ||||
Number of SVS repurchased for delivery under SBC plans (in millions) (in shares) | 3,700 | 3,900 | 1,900 | ||||
Number of SVS held by trustee for delivery under SBC plans (in millions) (in shares) | 3,300 | 1,500 | 1,400 | ||||
Value of SVS held by trustee for delivery under SBC plans | $ 72.6 | $ 16.7 | $ 15.1 | ||||
Number of SVS repurchased for cancellation (in millions) (in shares) | 2,700 | 3,140 | 4,400 | ||||
Accrual for repurchase of stock under automatic share purchase plan | $ 2.7 | ||||||
SVS | 2020 NCIB | |||||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||||||
Accrual for repurchase of stock under automatic share purchase plan | $ 7.5 | $ 15 | |||||
SVS | NICB ASPP | |||||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||||||
Number of SVS repurchased for cancellation (in millions) (in shares) | 900 | 2,500 | 2,800 | ||||
SVS | 2021 SBC ASPP | |||||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||||||
Accrual for repurchase of stock under automatic share purchase plan | $ 33.8 | ||||||
SVS | SBC ASPP | |||||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||||||
Number of SVS repurchased for delivery under SBC plans (in millions) (in shares) | 3,700 | 3,900 | 700 | ||||
[1]Consists of $82.3 paid to repurchase SVS for delivery obligations under our SBC plans in 2023 and $7.5 accrued at December 31, 2023 for the estimated Contractual Maximum Quantity under an ASPP executed in September 2023 for such purpose. See note 12.[2]Consists of $44.9 paid to repurchase SVS for delivery obligations under our SBC plans in 2022, offset in part by the reversal of the $33.8 2021 SBC Accrual. See note 12.[3]Consists of $20.6 paid to repurchase SVS for delivery obligations under our SBC plans in 2021, and $33.8 accrued as of December 31, 2021 for the estimated Contractual Maximum Quantity under an ASPP executed in December 2021 for such purpose (2021 SBC Accrual). See note 12. |
Capital Stock - Schedule of Emp
Capital Stock - Schedule of Employee SBC Expense by Income Statement Location (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
SBC expense included in above employee-related costs | $ 55.6 | $ 51 | $ 33.4 |
Fair value gain/(loss) | (5.2) | ||
Combined effect of employee SBC expense and TRS FVAs | 10 | 51 | 33.4 |
TRS | |||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Fair value gain/(loss) | (45.6) | 0 | 0 |
Employee SBC expense in cost of sales | |||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
SBC expense included in above employee-related costs | 22.6 | 20.3 | 13 |
Employee SBC expense in cost of sales | TRS | |||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Fair value gain/(loss) | (18.6) | 0 | 0 |
Employee SBC expense in SG&A | |||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
SBC expense included in above employee-related costs | 33 | 30.7 | 20.4 |
Employee SBC expense in SG&A | TRS | |||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Fair value gain/(loss) | $ (27) | $ 0 | $ 0 |
Capital Stock - Schedule of Sto
Capital Stock - Schedule of Stock Option Transactions (Details) | 12 Months Ended | ||
Dec. 31, 2023 shares $ / shares | Dec. 31, 2022 shares $ / shares | Dec. 31, 2021 shares $ / shares | |
Share-Based Compensation Arrangement By Share-Based Payment Award, Options, Outstanding [Roll Forward] | |||
Outstanding, beginning balance (in shares) | shares | 390,000 | 410,000 | 340,000 |
Granted (in shares) | shares | 0 | 0 | 90,000 |
Exercised (in shares) | shares | (20,000) | (20,000) | (20,000) |
Outstanding, ending balance (in shares) | shares | 370,000 | 390,000 | 410,000 |
Share-Based Compensation Arrangement By Share-Based Payment Award, Options, Outstanding, Weighted-Average Exercise Price [Roll Forward] | |||
Weighted average exercise price, beginning balance (in dollars per share) | $ / shares | $ 12.38 | $ 12.70 | $ 12.78 |
Weighted average exercise price, granted (in dollars per share) | $ / shares | 10.58 | ||
Weighted average exercise price, exercised (in dollars per share) | $ / shares | 10.58 | 6.36 | 6.54 |
Weighted average exercise price, beginning balance (in dollars per share) | $ / shares | $ 12.72 | $ 12.38 | $ 12.70 |
Capital Stock - Schedule of S_2
Capital Stock - Schedule of Stock Options Outstanding (Details) shares in Thousands | 12 Months Ended | |||
Dec. 31, 2023 shares $ / shares | Dec. 31, 2022 shares $ / shares | Dec. 31, 2021 shares $ / shares | Dec. 31, 2020 shares $ / shares | |
Disclosure of range of exercise prices of outstanding share options [line items] | ||||
Outstanding options (in shares) | shares | 370 | 390 | 410 | 340 |
Weighted average exercise price of share options outstanding in share-based payment arrangement (in dollars per share) | $ 12.72 | $ 12.38 | $ 12.70 | $ 12.78 |
Weighted average remaining life of outstanding options | 2 years 9 months 18 days | |||
Exercisable options (in shares) | shares | 300 | |||
Weighted average exercise price (in usd per share) | $ 13.03 | |||
Bottom of range | ||||
Disclosure of range of exercise prices of outstanding share options [line items] | ||||
Exercise price of outstanding share options (in dollars per share) | 10.58 | |||
Top of range | ||||
Disclosure of range of exercise prices of outstanding share options [line items] | ||||
Exercise price of outstanding share options (in dollars per share) | $ 13.23 |
Capital Stock - PSU Measurement
Capital Stock - PSU Measurement Inputs (Details) - PSUs | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Expected volatility | 53% | 52% | 49% |
Expected life | 3 years | 3 years | 3 years |
Risk-free interest rate (based on 3-year Treasury bonds) | 3.90% | 1.40% | 0.20% |
Capital Stock - Schedule of Inf
Capital Stock - Schedule of Information about RSUs and PSUs Granted and Outstanding (Details) | 12 Months Ended | ||
Dec. 31, 2023 shares $ / shares | Dec. 31, 2022 shares $ / shares | Dec. 31, 2021 shares $ / shares | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Number of awards (in millions) (in shares) | 0 | 0 | 90,000 |
Weighted average grant date fair value per option (in dollars per share) | $ / shares | $ 0 | $ 0 | $ 4.22 |
RSUs | |||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Number of awards (in millions) (in shares) | 2,000,000 | 2,000,000 | 3,000,000 |
Weighted average grant date fair value per unit (in usd per share) | $ / shares | $ 13.20 | $ 12.17 | $ 8.36 |
Number of shares outstanding (in shares) | 3,200,000 | 3,800,000 | 4,600,000 |
PSUs | |||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Number of awards (in millions) (in shares) | 1,300,000 | 1,300,000 | 2,900,000 |
Weighted average grant date fair value per unit (in usd per share) | $ / shares | $ 15.06 | $ 14.27 | $ 9.49 |
Number of awards (in millions, representing 100% of target) (in shares) | 100% | 100% | 100% |
Number of shares outstanding (in shares) | 4,600,000 | 5,100,000 | 6,100,000 |
Capital Stock - Director SBC In
Capital Stock - Director SBC Included in the Income Statement (Details) $ / shares in Units, shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 USD ($) shares $ / shares | Dec. 31, 2022 USD ($) shares $ / shares | Dec. 31, 2021 USD ($) shares $ / shares | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Director SBC expense in SG&A | $ | $ 55.6 | $ 51 | $ 33.4 |
RSUs | |||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Number of awards (in millions) (in shares) | 2 | 2 | 3 |
Weighted average grant date fair value per unit (in usd per share) | $ / shares | $ 13.20 | $ 12.17 | $ 8.36 |
Number of shares outstanding (in shares) | 3.2 | 3.8 | 4.6 |
Director | |||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Director SBC expense in SG&A | $ | $ 2.4 | $ 2.2 | $ 2.1 |
Director | DSUs | |||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Number of awards (in millions) (in shares) | 0.1 | 0.1 | 0.1 |
Weighted average grant date fair value per unit (in usd per share) | $ / shares | $ 17.72 | $ 10.18 | $ 8.98 |
Number of shares outstanding (in shares) | 1.1 | 2.1 | 2.2 |
Director | RSUs | |||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Number of awards (in millions) (in shares) | $ / shares | 20,000 | 40,000 | 50,000 |
Weighted average grant date fair value per unit (in usd per share) | $ / shares | $ 18.15 | $ 10.44 | $ 8.92 |
Number of shares outstanding (in shares) | 0.1 | 0.1 | 0.1 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss, Net of Tax (Details) - USD ($) | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | ||
Accumulated Other Comprehensive Income Rollforward [Roll Forward] | ||||
Accumulated other comprehensive income, beginning balance | $ (5,700,000) | |||
Foreign currency translation adjustments | (3,400,000) | $ (6,700,000) | $ (7,700,000) | |
Actuarial gains (losses) on pension and non-pension post-employment benefit plans | (7,600,000) | 33,500,000 | 9,300,000 | |
Reclassification of actuarial losses (gains) to deficit | 7,600,000 | (33,500,000) | (9,300,000) | |
Accumulated other comprehensive income, ending balance | (14,900,000) | (5,700,000) | ||
Foreign currency | ||||
Accumulated Other Comprehensive Income Rollforward [Roll Forward] | ||||
Accumulated other comprehensive income, beginning balance | (24,700,000) | (18,000,000) | (10,300,000) | |
Accumulated other comprehensive income, ending balance | (28,100,000) | (24,700,000) | (18,000,000) | |
Pension and non-pension post-employment benefit plans | ||||
Accumulated Other Comprehensive Income Rollforward [Roll Forward] | ||||
Accumulated other comprehensive income, beginning balance | 0 | 0 | ||
Accumulated other comprehensive income, ending balance | 0 | 0 | 0 | |
Accumulated other comprehensive loss | ||||
Accumulated Other Comprehensive Income Rollforward [Roll Forward] | ||||
Accumulated other comprehensive income, beginning balance | (5,700,000) | (26,800,000) | ||
Foreign currency translation adjustments | [1] | (3,400,000) | (6,700,000) | (7,700,000) |
Accumulated other comprehensive income, ending balance | (14,900,000) | (5,700,000) | (26,800,000) | |
Currency forward | ||||
Accumulated Other Comprehensive Income Rollforward [Roll Forward] | ||||
Net gain (loss) on cash flow hedges | 2,600,000 | (5,900,000) | (5,300,000) | |
Reclassification of net loss (gain) on cash flow hedges to operations | (4,400,000) | 13,100,000 | (8,200,000) | |
Income tax expense (recovery) relating to net loss on cash flow hedges | 0 | 1,600,000 | 500,000 | |
Release of income tax (expense) benefit relating to reclassification of net loss on cash flow hedges to operations | 1,000,000 | (2,200,000) | 600,000 | |
Income tax expense (recovery) relating to cash flow hedges | (1,500,000) | (500,000) | 100,000 | |
Currency forward | Cash flow hedges | ||||
Accumulated Other Comprehensive Income Rollforward [Roll Forward] | ||||
Accumulated other comprehensive income, beginning balance | 5,300,000 | (1,900,000) | 11,600,000 | |
Accumulated other comprehensive income, ending balance | 3,500,000 | 5,300,000 | (1,900,000) | |
Interest rate swap | ||||
Accumulated Other Comprehensive Income Rollforward [Roll Forward] | ||||
Net gain (loss) on cash flow hedges | 5,000,000 | 18,100,000 | 2,400,000 | |
Reclassification of net loss (gain) on cash flow hedges to operations | (9,000,000) | 2,500,000 | 7,200,000 | |
Income tax expense (recovery) relating to net loss on cash flow hedges | 1,500,000 | (5,000,000) | 0 | |
Income tax expense (recovery) relating to cash flow hedges | (3,500,000) | (5,000,000) | 0 | |
Interest rate swap | Cash flow hedges | ||||
Accumulated Other Comprehensive Income Rollforward [Roll Forward] | ||||
Accumulated other comprehensive income, beginning balance | 13,700,000 | (6,900,000) | (16,500,000) | |
Accumulated other comprehensive income, ending balance | $ 9,700,000 | $ 13,700,000 | $ (6,900,000) | |
[1] AOC loss (Accumulated other comprehensive loss) is net of tax. See note 13. |
Expenses By Nature (Details)
Expenses By Nature (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Analysis of income and expense [abstract] | |||
Employee-related costs | $ 1,028.7 | $ 955.8 | $ 819.4 |
SBC expense included in above employee-related costs | 55.6 | 51 | 33.4 |
Freight and transportation costs | 144 | 186.1 | 142.5 |
Depreciation expense | 120.8 | 104.6 | 100.8 |
Rental expense | $ 2.1 | $ 3 | $ 2.4 |
Other Charges, Net of Recover_3
Other Charges, Net of Recoveries - Schedule of Charges, Net of Recoveries (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Analysis of income and expense [abstract] | |||
Restructuring charges, net of recoveries | $ 11.2 | $ 8.4 | $ 10.5 |
Transition Costs (Recoveries) | 3.9 | (2.1) | 1.2 |
Credit Facility-related charges | 0 | 0 | 3 |
Acquisition Costs, net of recoveries | 1 | 0.4 | 6.1 |
Other recoveries, net of costs | (0.9) | 0 | (10.5) |
Other charges, net of recoveries | $ 15.2 | $ 6.7 | $ 10.3 |
Other Charges, Net of Recover_4
Other Charges, Net of Recoveries - Narrative (Details) - USD ($) | 1 Months Ended | 12 Months Ended | ||
Mar. 31, 2019 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Restructuring and Related Costs [Line Items] | ||||
Write-downs of property, plant and equipment | $ 95,000,000 | |||
Expense of restructuring activities | $ 11,200,000 | 8,400,000 | $ 10,500,000 | |
Cash restructure charges | 9,600,000 | 7,500,000 | 9,800,000 | |
Non-cash restructuring charges | 2,900,000 | 900,000 | 1,500,000 | |
Impairment loss (reversal of impairment loss) recognised in profit or loss | 700,000 | |||
Non-cash restructuring recoveries | 1,300,000 | 800,000 | ||
Lease term (in years) | 10 years | |||
Restructuring provision | 3,600,000 | 5,800,000 | 6,100,000 | |
Transition costs (recoveries) | 3,900,000 | (2,100,000) | 1,200,000 | |
Accelerated amortization of unamortized deferred financing costs | 0 | 0 | 3,000,000 | |
Costs related to acquisition activities | 7,300,000 | |||
Release of indirect tax liabilities | 1,200,000 | |||
Other recoveries, net of costs | 900,000 | 0 | 10,500,000 | |
Other recoveries, costs | $ 1,800,000 | |||
PSUs | ||||
Restructuring and Related Costs [Line Items] | ||||
Vesting period | 3 years | |||
PCI | ||||
Restructuring and Related Costs [Line Items] | ||||
Costs related to acquisition activities | 400,000 | 4,800,000 | ||
Disposal of Assets Reclassified as Held-For-Sale | ||||
Restructuring and Related Costs [Line Items] | ||||
Transition costs (recoveries) | 1,500,000 | |||
Gain on Sale of Assets Held-For-Sale | ||||
Restructuring and Related Costs [Line Items] | ||||
Transition costs (recoveries) | $ 0 | $ (3,600,000) | 0 | |
Settlement of Class Action Lawsuits | ||||
Restructuring and Related Costs [Line Items] | ||||
Other recoveries, net of costs | 2,700,000 | |||
Transfer of Manufacturing Lines | ||||
Restructuring and Related Costs [Line Items] | ||||
Transition costs (recoveries) | 1,200,000 | |||
Rental Expense Exceeding Sublease Recoveries | ||||
Restructuring and Related Costs [Line Items] | ||||
Transition costs (recoveries) | $ 3,900,000 | |||
Credit Facility | ||||
Restructuring and Related Costs [Line Items] | ||||
Accelerated amortization of unamortized deferred financing costs | $ 2,600,000 |
Finance Costs - Narrative (Deta
Finance Costs - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | ||
Disclosure of detailed information about borrowings [line items] | ||||
Finance costs paid | [1] | $ (65.5) | $ (50) | $ (26) |
Credit Facility | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Finance costs paid | (65.5) | (50) | ||
Payment of debt issuance costs | $ 0.4 | $ 0.8 | $ 3.6 | |
[1]Finance costs paid include debt issuance costs paid of $0.4 in 2023 (2022— $0.8; 2021 — $3.6). |
Related Party Transactions - Na
Related Party Transactions - Narrative (Details) - Entities with significant influence - USD ($) $ in Thousands | 9 Months Ended | |
Oct. 18, 2023 | Sep. 30, 2023 | |
Disclosure of transactions between related parties [line items] | ||
Annual fee to be paid for Service Agreement | $ 235 | |
Expense from cash-settled share-based payment transactions | $ 9,200 |
Related Party Transactions - Ag
Related Party Transactions - Aggregate Compensation for Directors and Senior Executive Officers (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Disclosure of transactions between related parties [abstract] | |||
Short-term employee benefits and costs | $ 9.6 | $ 9.7 | $ 7.3 |
Post-employment and other long-term benefits | 0.6 | 0.5 | 0.6 |
SBC (including DSUs and RSUs to eligible directors) | 29.2 | 25.5 | 17.3 |
Key management personnel compensation | $ 39.4 | $ 35.7 | $ 25.2 |
Pension and Non-pension Post-_3
Pension and Non-pension Post-employment Benefit Plans - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Disclosure of defined benefit plans [line items] | ||
Percentage of plan members that are active employees of the Company | 0% | 1% |
Plan assets, at fair value | $ 213.5 | $ 214.1 |
Percentage of plan assets held with financial institutions with a rating of A- or above | 92% | |
Number of basis points | 1% | |
Pension Plan | ||
Disclosure of defined benefit plans [line items] | ||
Plan assets, at fair value | $ 211.2 | 211.8 |
Plan assets, decrease due to restrictions | (2.6) | (0.9) |
Level 1 | ||
Disclosure of defined benefit plans [line items] | ||
Plan assets, at fair value | 30.9 | 32.1 |
Level 3 | ||
Disclosure of defined benefit plans [line items] | ||
Plan assets, at fair value | $ 182.6 | $ 182 |
Pension and Non-pension Post-_4
Pension and Non-pension Post-employment Benefit Plans - Market Value of Plan Assets (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Disclosure of information about defined benefit plans [abstract] | ||
Debt investment funds | $ 8.9 | $ 9 |
Equity investment funds | 5.9 | 6.4 |
Insurance annuities | 182.6 | 182 |
Other | 16.1 | 16.7 |
Total | $ 213.5 | $ 214.1 |
Debt investment funds, allocation percentage | 4% | 4% |
Equity investment funds, allocation percentage | 3% | 3% |
Insurance annuities, allocation percentage | 85% | 85% |
Other, allocation percentage | 8% | 8% |
Total, allocation percentage | 100% | 100% |
Pension and Non-pension Post-_5
Pension and Non-pension Post-employment Benefit Plans - Summary of Plan Assets (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Pension Plan | |||
Disclosure of net defined benefit liability (asset) [line items] | |||
Interest income | $ (0.1) | $ (0.4) | $ (0.4) |
Administrative expenses paid from plan assets | 0.5 | 0.6 | 1.3 |
Pension Plan | Plan assets | |||
Disclosure of net defined benefit liability (asset) [line items] | |||
Plan assets, beginning of year | 211.8 | 359.9 | |
Interest income | 10.1 | 5.8 | |
Actuarial gains (losses) in other comprehensive income | (10) | (112) | |
Administrative expenses paid from plan assets | (0.4) | (0.6) | |
Employer contributions | 1.3 | 4 | |
Employer direct benefit payments | 0.3 | 0.1 | |
Employer direct settlement payments | 0 | 0 | |
Settlement payments from employer | 0 | 0 | |
Settlement payments from plan | 0 | 0 | |
Benefit payments from plan | (10.8) | (10.4) | |
Benefit payments from employer | (0.3) | (0.1) | |
Foreign currency exchange rate changes and other | 9.2 | (34.9) | |
Plan assets, end of year | 211.2 | 211.8 | 359.9 |
Other benefit plans | |||
Disclosure of net defined benefit liability (asset) [line items] | |||
Interest income | (3.1) | (2.7) | (2.4) |
Administrative expenses paid from plan assets | 0 | 0 | 0 |
Other benefit plans | Plan assets | |||
Disclosure of net defined benefit liability (asset) [line items] | |||
Plan assets, beginning of year | 2.3 | 2 | |
Interest income | 0.1 | 0 | |
Actuarial gains (losses) in other comprehensive income | 0 | 0 | |
Administrative expenses paid from plan assets | 0 | 0 | |
Employer contributions | 0.6 | 0.8 | |
Employer direct benefit payments | 3.7 | 2.4 | |
Employer direct settlement payments | 1.1 | 0 | |
Settlement payments from employer | (1.1) | 0 | |
Settlement payments from plan | (0.1) | 0 | |
Benefit payments from plan | (0.4) | (0.4) | |
Benefit payments from employer | (3.7) | (2.4) | |
Foreign currency exchange rate changes and other | (0.2) | (0.1) | |
Plan assets, end of year | $ 2.3 | $ 2.3 | $ 2 |
Pension and Non-pension Post-_6
Pension and Non-pension Post-employment Benefit Plans - Summary of Accrued Benefit Obligations (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Pension Plan | |||
Disclosure of defined benefit plans [line items] | |||
Current service cost | $ 2.2 | $ 0.3 | $ 2.5 |
Past service cost (credit) and settlement/curtailment losses | 0 | 0 | 0 |
Interest cost | $ 0.1 | $ 0.4 | 0.4 |
Actuarial losses (gains) in other comprehensive income from: | |||
Weighted average duration of benefit obligations (in years) | 13 years | 13 years | |
Other benefit plans | |||
Disclosure of defined benefit plans [line items] | |||
Current service cost | $ 3.1 | $ 3.1 | 3.4 |
Past service cost (credit) and settlement/curtailment losses | (0.9) | 0 | (0.3) |
Interest cost | $ 3.1 | $ 2.7 | 2.4 |
Actuarial losses (gains) in other comprehensive income from: | |||
Weighted average duration of benefit obligations (in years) | 10 years | 10 years | |
Accrued benefit obligations | Pension Plan | |||
Disclosure of defined benefit plans [line items] | |||
Accrued benefit obligations, beginning of year | $ 216.9 | $ 373.9 | |
Current service cost | 2.2 | 0.3 | |
Past service cost (credit) and settlement/curtailment losses | 0 | 0 | |
Interest cost | 10.2 | 6.2 | |
Actuarial losses (gains) in other comprehensive income from: | |||
— Changes in demographic assumptions | (6.5) | (0.5) | |
— Changes in financial assumptions | 5.8 | (124.7) | |
— Experience adjustments | (8) | 7.5 | |
Settlement payments from employer | 0 | 0 | |
Settlement payments from plan | 0 | 0 | |
Benefit payments from plan | (10.8) | (10.4) | |
Benefit payments from employer | (0.3) | (0.1) | |
Foreign currency exchange rate changes and other | 9.8 | (35.3) | |
Accrued benefit obligations, end of year | 219.3 | 216.9 | 373.9 |
Accrued benefit obligations | Other benefit plans | |||
Disclosure of defined benefit plans [line items] | |||
Accrued benefit obligations, beginning of year | 66.3 | 89.1 | |
Current service cost | 3.1 | 3.1 | |
Past service cost (credit) and settlement/curtailment losses | 0.9 | 0 | |
Interest cost | 3.2 | 2.7 | |
Actuarial losses (gains) in other comprehensive income from: | |||
— Changes in demographic assumptions | 0 | (4.6) | |
— Changes in financial assumptions | 3.3 | (15.7) | |
— Experience adjustments | 1.3 | (1.8) | |
Settlement payments from employer | (1.1) | 0 | |
Settlement payments from plan | (0.1) | 0 | |
Benefit payments from plan | (0.4) | (0.4) | |
Benefit payments from employer | (3.7) | (2.4) | |
Foreign currency exchange rate changes and other | 1.6 | (3.7) | |
Accrued benefit obligations, end of year | $ 74.4 | $ 66.3 | $ 89.1 |
Pension and Non-pension Post-_7
Pension and Non-pension Post-employment Benefit Plans - Surplus (Deficit) in Defined Benefit Pension and Other Benefit Plans (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Disclosure of net defined benefit liability (asset) [line items] | ||
Plan assets, end of year | $ 213.5 | $ 214.1 |
Pension Plan | ||
Disclosure of net defined benefit liability (asset) [line items] | ||
Accrued benefit obligations, end of year | (219.3) | (216.9) |
Plan assets, end of year | 211.2 | 211.8 |
Reduction of plan assets due to IFRS restrictions described in note 2(l) | (2.6) | (0.9) |
Deficiency of plan assets over accrued benefit obligations | (10.7) | (6) |
Other benefit plans | ||
Disclosure of net defined benefit liability (asset) [line items] | ||
Accrued benefit obligations, end of year | (74.4) | (66.3) |
Plan assets, end of year | 2.3 | 2.3 |
Reduction of plan assets due to IFRS restrictions described in note 2(l) | 0 | 0 |
Deficiency of plan assets over accrued benefit obligations | $ (72.1) | $ (64) |
Pension and Non-pension Post-_8
Pension and Non-pension Post-employment Benefit Plans - Plan Balances Reported on Consolidated Balance Sheet (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Disclosure of defined benefit plans [line items] | ||
Pension and non-pension post-employment benefit obligations | $ (88.1) | $ (77) |
Current other post-employment benefit obligations | 0 | (0.1) |
Non-current net defined benefit asset (note 9) | 5.3 | 7.1 |
Excess (deficiency) of plan assets over accrued benefit obligations | (82.8) | (70) |
Pension Plan | ||
Disclosure of defined benefit plans [line items] | ||
Pension and non-pension post-employment benefit obligations | (16) | (13.1) |
Current other post-employment benefit obligations | 0 | 0 |
Non-current net defined benefit asset (note 9) | 5.3 | 7.1 |
Excess (deficiency) of plan assets over accrued benefit obligations | (10.7) | (6) |
Other benefit plans | ||
Disclosure of defined benefit plans [line items] | ||
Pension and non-pension post-employment benefit obligations | (72.1) | (63.9) |
Current other post-employment benefit obligations | 0 | (0.1) |
Non-current net defined benefit asset (note 9) | 0 | 0 |
Excess (deficiency) of plan assets over accrued benefit obligations | $ (72.1) | $ (64) |
Pension and Non-pension Post-_9
Pension and Non-pension Post-employment Benefit Plans - Expense Recognized in Consolidated Statement of Operations (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Pension Plan | |||
Disclosure of defined benefit plans [line items] | |||
Current service cost | $ 2.2 | $ 0.3 | $ 2.5 |
Net interest cost | 0.1 | 0.4 | 0.4 |
Past service cost and settlement/curtailment losses | 0 | 0 | 0 |
Plan administrative expenses and other | 0.5 | 0.6 | 1.3 |
Post-employment benefit expense, defined benefit plans | 2.8 | 1.3 | 4.2 |
Defined contribution pension plan expense | 12.7 | 12.3 | 11.6 |
Total expense for the year | 15.5 | 13.6 | 15.8 |
Other benefit plans | |||
Disclosure of defined benefit plans [line items] | |||
Current service cost | 3.1 | 3.1 | 3.4 |
Net interest cost | 3.1 | 2.7 | 2.4 |
Past service cost and settlement/curtailment losses | 0.9 | 0 | 0.3 |
Plan administrative expenses and other | 0 | 0 | 0 |
Post-employment benefit expense, defined benefit plans | 7.1 | 5.8 | 6.1 |
Defined contribution pension plan expense | 0 | 0 | 0 |
Total expense for the year | $ 7.1 | $ 5.8 | $ 6.1 |
Pension and Non-pension Post_10
Pension and Non-pension Post-employment Benefit Plans - Actuarial Gains and Losses, Net of Tax, Recognized in OCI (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Disclosure of analysis of other comprehensive income by item [line items] | |||
Actuarial losses (gains) recognized during the year | $ 7.6 | $ (33.5) | $ (9.3) |
Income tax recovery | 6.6 | 6.5 | 1.5 |
Actuarial assumptions | |||
Disclosure of analysis of other comprehensive income by item [line items] | |||
Income tax recovery | 0.1 | 5 | 0 |
Pension and non-pension post-employment benefit plans | |||
Disclosure of analysis of other comprehensive income by item [line items] | |||
Cumulative losses, beginning of year | 44.2 | 77.7 | 87 |
Cumulative losses, end of year | $ 51.8 | $ 44.2 | $ 77.7 |
Pension and Non-pension Post_11
Pension and Non-pension Post-employment Benefit Plans - Percentages and Assumptions Used in Measuring the Plans (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
Pension Plan | |||
Weighted average discount rate at December 31 (i) for: | |||
Benefit obligations | 4.60% | 4.90% | 1.80% |
Net pension cost | 4.80% | 1.80% | 1.40% |
Weighted average rate of compensation increase for: | |||
Benefit obligations | 2.90% | 1.10% | 1.10% |
Net pension cost | 1.10% | 1.10% | 1.10% |
Healthcare cost trend rates: | |||
Immediate trend | 0% | 0% | 0% |
Ultimate trend | 0% | 0% | 0% |
Pension Plan | Discount rate | |||
Healthcare cost trend rates: | |||
1% Increase | $ (24.7) | ||
1% Decrease | 30.5 | ||
Pension Plan | Healthcare cost trend rate | |||
Healthcare cost trend rates: | |||
1% Increase | 0 | ||
1% Decrease | $ 0 | ||
Other benefit plans | |||
Weighted average discount rate at December 31 (i) for: | |||
Benefit obligations | 4.50% | 4.90% | 3.20% |
Net pension cost | 4.90% | 3.20% | 2.50% |
Weighted average rate of compensation increase for: | |||
Benefit obligations | 4.60% | 4.60% | 4.60% |
Net pension cost | 4.60% | 4.60% | 4.60% |
Healthcare cost trend rates: | |||
Immediate trend | 6.50% | 5.10% | 5.20% |
Ultimate trend | 4% | 4% | 4% |
Other benefit plans | Discount rate | |||
Healthcare cost trend rates: | |||
1% Increase | $ (6.8) | ||
1% Decrease | 7.5 | ||
Other benefit plans | Healthcare cost trend rate | |||
Healthcare cost trend rates: | |||
1% Increase | 3.4 | ||
1% Decrease | $ (2.9) |
Pension and Non-pension Post_12
Pension and Non-pension Post-employment Benefit Plans - Schedule of Non-pension Post-employment Benefit Plans (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Disclosure of defined benefit plans [line items] | |||
Plan contributions | $ 14.3 | $ 16.4 | $ 17.7 |
Estimated contribution | 14 | ||
Defined Contribution Plan | |||
Disclosure of defined benefit plans [line items] | |||
Plan contributions | 12.7 | 12.3 | 11.6 |
Estimated contribution | 12.7 | ||
Other benefit plans | |||
Disclosure of defined benefit plans [line items] | |||
Plan contributions | 5.4 | 3.2 | 3.6 |
Estimated contribution | 4.6 | ||
Pension Plan | |||
Disclosure of defined benefit plans [line items] | |||
Plan contributions | 1.6 | $ 4.1 | $ 6.1 |
Estimated contribution | $ 1.3 |
Income Taxes - Major Components
Income Taxes - Major Components of Tax Expense (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Current income tax expense: | |||
Current year | $ 66.4 | $ 99.1 | $ 44.3 |
Adjustments for prior years, including changes to net provisions related to tax uncertainties | (2.5) | (10.4) | (3.4) |
Current tax expense | 63.9 | 88.7 | 40.9 |
Deferred income tax expense (recovery): | |||
Origination and reversal of temporary differences | (1.3) | (22.3) | 1.3 |
Changes in previously unrecognized tax losses and deductible temporary differences, including adjustments for prior years | (0.6) | (8.3) | (10.1) |
Deferred tax expense | (1.9) | (30.6) | (8.8) |
Income tax expense (recovery) | $ 62 | $ 58.1 | $ 32.1 |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of Income Taxes (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Earnings before income taxes | $ 306.6 | $ 203.6 | $ 136 |
Income tax expense at Celestica’s statutory income tax rate of 26.5% (2021 to 2023) | 81.3 | 54 | 36.1 |
Foreign income taxed at different rates | (51.4) | (34.1) | (16.9) |
Foreign exchange | 4 | 5.7 | 1.2 |
Other, including non-taxable/non-deductible items and changes to net provisions related to tax uncertainties | 19.1 | 2.9 | 8.2 |
Change in tax rates | 0 | 0.1 | (7.6) |
Change in unrecognized tax losses and deductible temporary differences | 9 | 29.5 | 11.1 |
Income tax expense | 62 | $ 58.1 | $ 32.1 |
Thailand | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Initial percentage of tax exemption (percent) | 100% | ||
Percentage of tax exemption | 50% | ||
China | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Deferred tax expense, repatriated undistributed foreign earnings | $ 11.3 | $ 3.3 | $ 6 |
Deferred tax expense, repatriated foreign earnings paid in current year | $ 3.3 | $ 2.5 |
Income Taxes - Changes in Defer
Income Taxes - Changes in Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Reconciliation of changes in deferred tax liability (asset) [abstract] | ||
Deferred tax assets, beginning balance | $ 68.9 | $ 47.7 |
Credited (charged) to net earnings | (4) | 23.2 |
Credited directly to equity | 0.6 | (0.3) |
Effects of foreign exchange | 0.5 | (2.6) |
Other | (3.5) | 0.9 |
Deferred tax assets, ending balance | 62.5 | 68.9 |
Reconciliation of changes in deferred tax liability [Roll Forward] | ||
Deferred tax liabilities, beginning balance | 51.7 | 60.2 |
Charged (credited) to net earnings | (5.9) | (7.4) |
Effects of foreign exchange | (0.2) | (2.4) |
Other | (3.4) | 1.3 |
Deferred tax liabilities, ending balance | 42.2 | 51.7 |
Unrealized foreign exchange gains | ||
Reconciliation of changes in deferred tax liability [Roll Forward] | ||
Deferred tax liabilities, beginning balance | 20.5 | 27.2 |
Charged (credited) to net earnings | 2.1 | (5) |
Effects of foreign exchange | 0.5 | (1.7) |
Deferred tax liabilities, ending balance | 23.1 | 20.5 |
Accounting provisions not currently deductible | ||
Reconciliation of changes in deferred tax liability (asset) [abstract] | ||
Deferred tax assets, beginning balance | 30.9 | 17.7 |
Credited (charged) to net earnings | (1.4) | 13.7 |
Effects of foreign exchange | (0.6) | (0.5) |
Other | (0.1) | |
Deferred tax assets, ending balance | 28.8 | 30.9 |
Pensions and non-pension post-retirement benefits | ||
Reconciliation of changes in deferred tax liability (asset) [abstract] | ||
Deferred tax assets, beginning balance | 10 | 2.8 |
Credited (charged) to net earnings | (2.4) | 2.8 |
Credited directly to equity | (0.1) | 4.4 |
Effects of foreign exchange | (0.1) | |
Deferred tax assets, ending balance | 7.4 | 10 |
Tax losses carried forward | ||
Reconciliation of changes in deferred tax liability (asset) [abstract] | ||
Deferred tax assets, beginning balance | 57 | 69.2 |
Credited (charged) to net earnings | (8.3) | (10.7) |
Credited directly to equity | 0 | 0.4 |
Effects of foreign exchange | 0.2 | (1.9) |
Deferred tax assets, ending balance | 48.9 | 57 |
Property, plant and equipment and intangibles | ||
Reconciliation of changes in deferred tax liability [Roll Forward] | ||
Deferred tax liabilities, beginning balance | 73.5 | 76.2 |
Charged (credited) to net earnings | (8) | (2.4) |
Effects of foreign exchange | (0.7) | (0.7) |
Other | 0 | 0.4 |
Deferred tax liabilities, ending balance | 64.8 | 73.5 |
Other | ||
Reconciliation of changes in deferred tax liability (asset) [abstract] | ||
Deferred tax assets, beginning balance | 13.3 | 1.2 |
Credited (charged) to net earnings | 8.1 | 17.4 |
Credited directly to equity | 0.7 | (5.1) |
Effects of foreign exchange | 1 | (0.2) |
Other | 0 | 0 |
Deferred tax assets, ending balance | 23.1 | 13.3 |
Reconciliation of changes in deferred tax liability [Roll Forward] | ||
Deferred tax liabilities, beginning balance | 0 | 0 |
Other | 0 | |
Deferred tax liabilities, ending balance | 0 | 0 |
Reclassification between deferred tax assets and deferred tax liabilities | ||
Reconciliation of changes in deferred tax liability (asset) [abstract] | ||
Deferred tax assets, beginning balance | (42.3) | (43.2) |
Other | (3.4) | 0.9 |
Deferred tax assets, ending balance | (45.7) | (42.3) |
Reconciliation of changes in deferred tax liability [Roll Forward] | ||
Deferred tax liabilities, beginning balance | (42.3) | (43.2) |
Other | (3.4) | 0.9 |
Deferred tax liabilities, ending balance | $ (45.7) | $ (42.3) |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) | 12 Months Ended | ||
Dec. 31, 2023 USD ($) taxIncentive | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | |
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Income tax expense (recovery) | $ 62,000,000 | $ 58,100,000 | $ 32,100,000 |
Tax rate effect of revaluation impact | 7,600,000 | ||
Favorable currency impacts | (3,500,000) | ||
Deferred tax assets | 62,500,000 | 68,900,000 | 47,700,000 |
Deductible temporary differences and unused tax losses for which no deferred tax assets have been recognized | 1,591,500,000 | 1,688,900,000 | |
Deferred tax liabilities | 42,200,000 | 51,700,000 | 60,200,000 |
Temporary differences associated with investments in subsidiaries for which no deferred tax liabilities have been recognized | $ 28,400,000 | 64,900,000 | |
Term of third tax incentive | 6 years | ||
Tax effect from tax incentives | $ 40,000,000 | 21,000,000 | 15,000,000 |
Term of fourth tax incentive | 6 years | ||
Deductible temporary differences and unused tax losses | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Deferred tax assets | $ 0 | 0 | |
China | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Deferred tax expense, repatriated undistributed foreign earnings | $ 11,300,000 | 3,300,000 | 6,000,000 |
Tax expenses relating to current and future withholding taxes | $ 10,300,000 | ||
Thailand | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Number of income tax incentives | taxIncentive | 4 | ||
Percentage of first tax incentive | 50% | ||
Percentage of second tax incentive | 100% | ||
Term of second tax incentive | 8 years | ||
Percentage of third tax incentive | 100% | ||
Percentage of tax exemption | 50% | ||
Percentage of fourth tax incentive | 100% | ||
Laos | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Percentage of tax exemption | 100% | ||
Applicable tax rate after expiration of incentive | 8% | ||
Asia | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | |||
Deferred tax expense, repatriated undistributed foreign earnings | $ 11,300,000 | ||
Tax uncertainty | 4,800,000 | ||
Tax expenses relating to current and future withholding taxes | 5,800,000 | ||
Reversal of tax uncertainties | 5,500,000 | $ (4,900,000) | |
Deferred tax assets | $ 700,000 | $ 5,000,000 | $ 4,900,000 |
Financial Instruments and Ris_2
Financial Instruments and Risk Management - Cash and Cash Equivalents (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Financial Instruments [Abstract] | ||||
Cash | $ 366.8 | $ 364 | ||
Cash equivalents | 3.6 | 10.5 | ||
Cash and cash equivalents | $ 370.4 | $ 374.5 | $ 394 | $ 463.8 |
Financial Instruments and Ris_3
Financial Instruments and Risk Management - Currency Risk (Details) - Foreign currency forwards and swaps $ in Millions | Dec. 31, 2023 USD ($) |
Cash and cash equivalents | Canadian dollar | |
Disclosure of nature and extent of risks arising from financial instruments [line items] | |
Risk exposure associated with instruments sharing characteristic | $ (0.2) |
Cash and cash equivalents | Euro | |
Disclosure of nature and extent of risks arising from financial instruments [line items] | |
Risk exposure associated with instruments sharing characteristic | 15.6 |
Cash and cash equivalents | Thai baht | |
Disclosure of nature and extent of risks arising from financial instruments [line items] | |
Risk exposure associated with instruments sharing characteristic | 6.3 |
Cash and cash equivalents | Mexican peso | |
Disclosure of nature and extent of risks arising from financial instruments [line items] | |
Risk exposure associated with instruments sharing characteristic | 1.4 |
A/R | Canadian dollar | |
Disclosure of nature and extent of risks arising from financial instruments [line items] | |
Risk exposure associated with instruments sharing characteristic | 0.2 |
A/R | Euro | |
Disclosure of nature and extent of risks arising from financial instruments [line items] | |
Risk exposure associated with instruments sharing characteristic | 55.6 |
A/R | Thai baht | |
Disclosure of nature and extent of risks arising from financial instruments [line items] | |
Risk exposure associated with instruments sharing characteristic | 0.1 |
A/R | Mexican peso | |
Disclosure of nature and extent of risks arising from financial instruments [line items] | |
Risk exposure associated with instruments sharing characteristic | 0 |
Income taxes and value-added taxes receivable | Canadian dollar | |
Disclosure of nature and extent of risks arising from financial instruments [line items] | |
Risk exposure associated with instruments sharing characteristic | 0 |
Income taxes and value-added taxes receivable | Euro | |
Disclosure of nature and extent of risks arising from financial instruments [line items] | |
Risk exposure associated with instruments sharing characteristic | 0.7 |
Income taxes and value-added taxes receivable | Thai baht | |
Disclosure of nature and extent of risks arising from financial instruments [line items] | |
Risk exposure associated with instruments sharing characteristic | 1.4 |
Income taxes and value-added taxes receivable | Mexican peso | |
Disclosure of nature and extent of risks arising from financial instruments [line items] | |
Risk exposure associated with instruments sharing characteristic | 64.3 |
Other financial assets | Canadian dollar | |
Disclosure of nature and extent of risks arising from financial instruments [line items] | |
Risk exposure associated with instruments sharing characteristic | 0 |
Other financial assets | Euro | |
Disclosure of nature and extent of risks arising from financial instruments [line items] | |
Risk exposure associated with instruments sharing characteristic | 5.6 |
Other financial assets | Thai baht | |
Disclosure of nature and extent of risks arising from financial instruments [line items] | |
Risk exposure associated with instruments sharing characteristic | 1.2 |
Other financial assets | Mexican peso | |
Disclosure of nature and extent of risks arising from financial instruments [line items] | |
Risk exposure associated with instruments sharing characteristic | 0.9 |
Pension and non-pension post-employment liabilities | Canadian dollar | |
Disclosure of nature and extent of risks arising from financial instruments [line items] | |
Risk exposure associated with instruments sharing characteristic | (50.1) |
Pension and non-pension post-employment liabilities | Euro | |
Disclosure of nature and extent of risks arising from financial instruments [line items] | |
Risk exposure associated with instruments sharing characteristic | (0.9) |
Pension and non-pension post-employment liabilities | Thai baht | |
Disclosure of nature and extent of risks arising from financial instruments [line items] | |
Risk exposure associated with instruments sharing characteristic | (20.8) |
Pension and non-pension post-employment liabilities | Mexican peso | |
Disclosure of nature and extent of risks arising from financial instruments [line items] | |
Risk exposure associated with instruments sharing characteristic | (5.3) |
Income taxes and value-added taxes payable | Canadian dollar | |
Disclosure of nature and extent of risks arising from financial instruments [line items] | |
Risk exposure associated with instruments sharing characteristic | (2.5) |
Income taxes and value-added taxes payable | Euro | |
Disclosure of nature and extent of risks arising from financial instruments [line items] | |
Risk exposure associated with instruments sharing characteristic | (0.8) |
Income taxes and value-added taxes payable | Thai baht | |
Disclosure of nature and extent of risks arising from financial instruments [line items] | |
Risk exposure associated with instruments sharing characteristic | 0 |
Income taxes and value-added taxes payable | Mexican peso | |
Disclosure of nature and extent of risks arising from financial instruments [line items] | |
Risk exposure associated with instruments sharing characteristic | (12.7) |
A/P and certain accrued and other liabilities and provisions | Canadian dollar | |
Disclosure of nature and extent of risks arising from financial instruments [line items] | |
Risk exposure associated with instruments sharing characteristic | (69.7) |
A/P and certain accrued and other liabilities and provisions | Euro | |
Disclosure of nature and extent of risks arising from financial instruments [line items] | |
Risk exposure associated with instruments sharing characteristic | (46.9) |
A/P and certain accrued and other liabilities and provisions | Thai baht | |
Disclosure of nature and extent of risks arising from financial instruments [line items] | |
Risk exposure associated with instruments sharing characteristic | (53.3) |
A/P and certain accrued and other liabilities and provisions | Mexican peso | |
Disclosure of nature and extent of risks arising from financial instruments [line items] | |
Risk exposure associated with instruments sharing characteristic | (22.1) |
Net financial assets (liabilities) | Canadian dollar | |
Disclosure of nature and extent of risks arising from financial instruments [line items] | |
Risk exposure associated with instruments sharing characteristic | (122.3) |
Net financial assets (liabilities) | Euro | |
Disclosure of nature and extent of risks arising from financial instruments [line items] | |
Risk exposure associated with instruments sharing characteristic | 28.9 |
Net financial assets (liabilities) | Thai baht | |
Disclosure of nature and extent of risks arising from financial instruments [line items] | |
Risk exposure associated with instruments sharing characteristic | (65.1) |
Net financial assets (liabilities) | Mexican peso | |
Disclosure of nature and extent of risks arising from financial instruments [line items] | |
Risk exposure associated with instruments sharing characteristic | $ 26.5 |
Financial Instruments and Ris_4
Financial Instruments and Risk Management - Foreign Currency Sensitivity Analysis (Details) - Foreign currency forwards and swaps $ in Millions | 12 Months Ended |
Dec. 31, 2023 USD ($) | |
Disclosure of nature and extent of risks arising from financial instruments [line items] | |
Reasonably possible change in risk variable, percentage | 1% |
Canadian dollar | |
Disclosure of nature and extent of risks arising from financial instruments [line items] | |
Reasonably possible increase in risk variable, impact on net earnings | $ (0.4) |
Reasonably possible increase in risk variable, impact on other comprehensive income | 1.2 |
Reasonably possible decrease in risk variable, impact on net earnings | 0.4 |
Reasonably possible decrease in risk variable, impact on other comprehensive income | (1.2) |
Euro | |
Disclosure of nature and extent of risks arising from financial instruments [line items] | |
Reasonably possible increase in risk variable, impact on net earnings | 0 |
Reasonably possible increase in risk variable, impact on other comprehensive income | (0.2) |
Reasonably possible decrease in risk variable, impact on net earnings | 0 |
Reasonably possible decrease in risk variable, impact on other comprehensive income | 0.2 |
Thai baht | |
Disclosure of nature and extent of risks arising from financial instruments [line items] | |
Reasonably possible increase in risk variable, impact on net earnings | (0.3) |
Reasonably possible increase in risk variable, impact on other comprehensive income | 1.1 |
Reasonably possible decrease in risk variable, impact on net earnings | 0.3 |
Reasonably possible decrease in risk variable, impact on other comprehensive income | (1.1) |
Mexican peso | |
Disclosure of nature and extent of risks arising from financial instruments [line items] | |
Reasonably possible increase in risk variable, impact on net earnings | 0 |
Reasonably possible increase in risk variable, impact on other comprehensive income | 0.4 |
Reasonably possible decrease in risk variable, impact on net earnings | 0 |
Reasonably possible decrease in risk variable, impact on other comprehensive income | $ (0.4) |
Financial Instruments and Ris_5
Financial Instruments and Risk Management - Interest Rate Risk (Details) - USD ($) | 12 Months Ended | |||||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 06, 2021 | Dec. 05, 2021 | Dec. 31, 2020 | |
Disclosure of detailed information about hedging instruments [line items] | ||||||
Fair value gain/(loss) | $ 5,200,000 | |||||
Interest rate swaps | ||||||
Disclosure of detailed information about hedging instruments [line items] | ||||||
Reasonably possible change in risk variable, impact on interest expense | $ 6,100,000 | |||||
Reasonably possible change in risk variable, unhedged items, impact on interest expense | 2,800,000 | |||||
Fair value gain/(loss) | 13,200,000 | 18,700,000 | ||||
Reasonably possible change in risk variable, increase, impact on unrealized gain (loss) | 5,800,000 | |||||
Reasonably possible change in risk variable, decrease, impact on unrealized gain (loss) | $ 5,700,000 | |||||
Reasonably possible change in risk variable, percentage | 1% | |||||
Credit Facility | ||||||
Disclosure of detailed information about hedging instruments [line items] | ||||||
Borrowings | $ 608,900,000 | 627,200,000 | ||||
Revolving Credit Facility | ||||||
Disclosure of detailed information about hedging instruments [line items] | ||||||
Borrowings | 0 | 0 | ||||
Initial Term Loan | ||||||
Disclosure of detailed information about hedging instruments [line items] | ||||||
Borrowings | 280,400,000 | 280,400,000 | $ 350,000,000 | |||
Unhedged borrowings | 180,400,000 | 180,400,000 | ||||
Initial Term Loan | Interest rate swaps | Initial Swaps | ||||||
Disclosure of detailed information about hedging instruments [line items] | ||||||
Hedged item, liabilities | 100,000,000 | |||||
Initial Term Loan | Interest rate swaps | First Extended Initial Swaps | ||||||
Disclosure of detailed information about hedging instruments [line items] | ||||||
Hedged item, liabilities | 100,000,000 | |||||
Second Incremental Term Loan | ||||||
Disclosure of detailed information about hedging instruments [line items] | ||||||
Borrowings | $ 365,000,000 | |||||
Second Incremental Term Loan | Interest rate swaps | First Extended Initial Swaps | ||||||
Disclosure of detailed information about hedging instruments [line items] | ||||||
Hedged item, liabilities | 100,000,000 | |||||
Second Incremental Term Loan | Interest rate swaps | Additional Incremental Swaps | ||||||
Disclosure of detailed information about hedging instruments [line items] | ||||||
Hedged item, liabilities | 130,000,000 | |||||
Second Incremental Term Loan | Interest rate swaps | Incremental Swaps | ||||||
Disclosure of detailed information about hedging instruments [line items] | ||||||
Hedged item, subject to cancellation | 50,000,000 | |||||
Term Loans | ||||||
Disclosure of detailed information about hedging instruments [line items] | ||||||
Borrowings | 608,900,000 | 627,200,000 | $ 660,400,000 | $ 470,400,000 | ||
Unhedged borrowings | 278,900,000 | 297,200,000 | ||||
Term Loans | Interest rate swaps | ||||||
Disclosure of detailed information about hedging instruments [line items] | ||||||
Hedged item, liabilities | 330,000,000 | |||||
Incremental Term Loan | ||||||
Disclosure of detailed information about hedging instruments [line items] | ||||||
Borrowings | 328,500,000 | 346,800,000 | $ 250,000,000 | |||
Unhedged borrowings | $ 98,500,000 | $ 116,800,000 |
Financial Instruments and Ris_6
Financial Instruments and Risk Management - Equity Price Risk (Details) shares in Thousands | 1 Months Ended | 12 Months Ended | |||
Feb. 29, 2024 USD ($) shares | Sep. 30, 2023 USD ($) shares | Dec. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) | Dec. 15, 2022 shares | |
Disclosure of nature and extent of risks arising from financial instruments [line items] | |||||
Interest rate swap derivative | $ 15,800,000 | $ 18,900,000 | |||
TRS | |||||
Disclosure of nature and extent of risks arising from financial instruments [line items] | |||||
Length of extension | 1 year | ||||
Interest rate swap derivative | $ 40,600,000 | ||||
SVS | TRS | |||||
Disclosure of nature and extent of risks arising from financial instruments [line items] | |||||
Notion amount (in shares) | shares | 3,000 | ||||
Increase (decrease) to notional amount (in shares) | shares | 500 | ||||
Proceeds from termination of agreement | $ 5,000,000 | ||||
SVS | Termination of Agreement | TRS | |||||
Disclosure of nature and extent of risks arising from financial instruments [line items] | |||||
Increase (decrease) to notional amount (in shares) | shares | 1,250 | ||||
Proceeds from termination of agreement | $ 32,300,000 | ||||
SVS | Equity price risk | TRS | |||||
Disclosure of nature and extent of risks arising from financial instruments [line items] | |||||
Weighted average exchange rate in U.S. dollars (in dollars per share) | 12.73 |
Financial Instruments and Ris_7
Financial Instruments and Risk Management - Credit and Liquidity Risk (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Financial Instruments [Abstract] | ||
Percent of gross accounts receivable over 90 days past due (less than in 2021) | 1% | 1% |
Allowance for doubtful accounts | $ 8.4 | $ 7.9 |
Financial Instruments and Ris_8
Financial Instruments and Risk Management - Fair Value Measurement (Details) - Fair value - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Derivatives | Level 1 | ||
Assets: | ||
Liabilities: | $ 0 | $ 0 |
Derivatives | Level 2 | ||
Assets: | ||
Liabilities: | (9.3) | (13.7) |
Derivatives | Level 1 | ||
Assets: | ||
Assets | 0 | 0 |
Derivatives | Level 2 | ||
Assets: | ||
Assets | 69.6 | 37.6 |
Interest rate swaps | Derivatives | Level 1 | ||
Assets: | ||
Assets | 0 | 0 |
Interest rate swaps | Derivatives | Level 2 | ||
Assets: | ||
Assets | 13.2 | 18.7 |
Foreign currency forwards and swaps | Derivatives | Level 1 | ||
Assets: | ||
Liabilities: | 0 | 0 |
Foreign currency forwards and swaps | Derivatives | Level 2 | ||
Assets: | ||
Liabilities: | (9.3) | (13.7) |
Foreign currency forwards and swaps | Derivatives | Level 1 | ||
Assets: | ||
Assets | 0 | 0 |
Foreign currency forwards and swaps | Derivatives | Level 2 | ||
Assets: | ||
Assets | 15.8 | 18.9 |
TRS | Derivatives | Level 1 | ||
Assets: | ||
Assets | 0 | 0 |
TRS | Derivatives | Level 2 | ||
Assets: | ||
Assets | $ 40.6 | $ 0 |
Financial Instruments and Ris_9
Financial Instruments and Risk Management - Derivative and Hedging Instruments (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Disclosure of detailed information about hedging instruments [line items] | ||
Contract amount in U.S. Dollars | $ 684,700,000 | |
Fair value gain/(loss) | 5,200,000 | |
Interest rate swap derivative | $ 15,800,000 | 18,900,000 |
Derivative liabilities | $ 9,300,000 | 13,700,000 |
Disclosure of Derivatives and Hedging Activities | At December 31, 2023 and December 31, 2022, we had foreign currency forwards and swaps to trade U.S. dollars in exchange for the following currencies: As at December 31, 2023 Currency Contract amount Weighted average (i) Maximum Fair value Canadian dollar $ 202.1 0.75 12 $ 3.9 Thai baht 156.3 0.03 12 2.9 Malaysian ringgit 93.6 0.22 12 (1.5) Mexican peso 86.9 0.06 12 1.8 British pound 2.7 1.26 4 (0.1) Chinese renminbi 30.2 0.14 12 0.1 Euro 48.3 1.09 12 (1.4) Romanian leu 42.2 0.22 12 0.9 Singapore dollar 29.4 0.75 12 0.3 Japanese yen 5.1 0.0069 4 (0.2) Korean won 3.6 0.0008 4 (0.2) Total (ii) $ 700.4 $ 6.5 As at December 31, 2022 Currency Contract amount Weighted average (i) Maximum Fair value Canadian dollar $ 194.2 0.75 12 $ (1.9) Thai baht 138.0 0.03 12 6.8 Malaysian ringgit 127.8 0.22 12 1.3 Mexican peso 56.6 0.05 12 0.9 British pound 2.6 1.18 4 (0.2) Chinese renminbi 45.7 0.15 12 0.4 Euro 46.2 1.04 8 (3.4) Romanian leu 37.3 0.20 12 1.5 Singapore dollar 24.7 0.72 12 1.1 Japanese yen 6.8 0.0072 4 (0.6) Korean won 4.8 0.0008 4 (0.7) Total (ii) $ 684.7 $ 5.2 (i) Represents the U.S. dollar equivalent (not in millions) of one unit of the foreign currency, weighted based on the notional amounts of the underlying foreign currency forward and swap contracts outstanding at December 31, 2023 or December 31, 2022, as applicable. (ii) As of December 31, 2023, the fair value of outstanding foreign currency forward and swap contracts related to effective cash flow hedges where we applied hedge accounting was a gain of $6.1 (December 31, 2022 — gain of $6.6), and the fair value of outstanding foreign currency forward and swap contracts related to economic hedges where we recorded the changes in the fair values of such contracts through our consolidated statement of operations was a gain of $0.4 (December 31, 2022 — loss of $1.4). | |
Forward Currency and Forward Swap Contracts | ||
Disclosure of detailed information about hedging instruments [line items] | ||
Contract amount in U.S. Dollars | $ 700,400,000 | |
Fair value gain/(loss) | 6,500,000 | |
Forward Currency and Forward Swap Contracts | Foreign currency forwards and swaps | ||
Disclosure of detailed information about hedging instruments [line items] | ||
Fair value gain/(loss) | (1,400,000) | |
Forward Currency and Forward Swap Contracts | Cash flow hedges | Foreign currency forwards and swaps | ||
Disclosure of detailed information about hedging instruments [line items] | ||
Fair value gain/(loss) | 6,100,000 | 6,600,000 |
Forward Currency and Forward Swap Contracts | Economic Hedge | Foreign currency forwards and swaps | ||
Disclosure of detailed information about hedging instruments [line items] | ||
Fair value gain/(loss) | 400,000 | |
Canadian dollar | ||
Disclosure of detailed information about hedging instruments [line items] | ||
Contract amount in U.S. Dollars | $ 194,200,000 | |
Weighted average exchange rate in U.S. dollars (in dollars per share) | 0.75 | |
Maximum period in months | 12 months | |
Fair value gain/(loss) | $ (1,900,000) | |
Canadian dollar | Forward Currency and Forward Swap Contracts | ||
Disclosure of detailed information about hedging instruments [line items] | ||
Contract amount in U.S. Dollars | $ 202,100,000 | |
Weighted average exchange rate in U.S. dollars (in dollars per share) | 0.75 | |
Maximum period in months | 12 months | |
Fair value gain/(loss) | $ 3,900,000 | |
Thai baht | ||
Disclosure of detailed information about hedging instruments [line items] | ||
Contract amount in U.S. Dollars | $ 138,000,000 | |
Weighted average exchange rate in U.S. dollars (in dollars per share) | 0.03 | |
Maximum period in months | 12 months | |
Fair value gain/(loss) | $ 6,800,000 | |
Thai baht | Forward Currency and Forward Swap Contracts | ||
Disclosure of detailed information about hedging instruments [line items] | ||
Contract amount in U.S. Dollars | $ 156,300,000 | |
Weighted average exchange rate in U.S. dollars (in dollars per share) | 0.03 | |
Maximum period in months | 12 months | |
Fair value gain/(loss) | $ 2,900,000 | |
Malaysian ringgit | ||
Disclosure of detailed information about hedging instruments [line items] | ||
Contract amount in U.S. Dollars | $ 127,800,000 | |
Weighted average exchange rate in U.S. dollars (in dollars per share) | 0.22 | |
Maximum period in months | 12 months | |
Fair value gain/(loss) | $ 1,300,000 | |
Malaysian ringgit | Forward Currency and Forward Swap Contracts | ||
Disclosure of detailed information about hedging instruments [line items] | ||
Contract amount in U.S. Dollars | $ 93,600,000 | |
Weighted average exchange rate in U.S. dollars (in dollars per share) | 0.22 | |
Maximum period in months | 12 months | |
Fair value gain/(loss) | $ (1,500,000) | |
Mexican peso | ||
Disclosure of detailed information about hedging instruments [line items] | ||
Contract amount in U.S. Dollars | $ 56,600,000 | |
Weighted average exchange rate in U.S. dollars (in dollars per share) | 0.05 | |
Maximum period in months | 12 months | |
Fair value gain/(loss) | $ 900,000 | |
Mexican peso | Forward Currency and Forward Swap Contracts | ||
Disclosure of detailed information about hedging instruments [line items] | ||
Contract amount in U.S. Dollars | $ 86,900,000 | |
Weighted average exchange rate in U.S. dollars (in dollars per share) | 0.06 | |
Maximum period in months | 12 months | |
Fair value gain/(loss) | $ 1,800,000 | |
British pound | ||
Disclosure of detailed information about hedging instruments [line items] | ||
Contract amount in U.S. Dollars | $ 2,600,000 | |
Weighted average exchange rate in U.S. dollars (in dollars per share) | 1.18 | |
Maximum period in months | 4 months | |
Fair value gain/(loss) | $ (200,000) | |
British pound | Forward Currency and Forward Swap Contracts | ||
Disclosure of detailed information about hedging instruments [line items] | ||
Contract amount in U.S. Dollars | $ 2,700,000 | |
Weighted average exchange rate in U.S. dollars (in dollars per share) | 1.26 | |
Maximum period in months | 4 months | |
Fair value gain/(loss) | $ (100,000) | |
China, Yuan Renminbi | ||
Disclosure of detailed information about hedging instruments [line items] | ||
Contract amount in U.S. Dollars | $ 45,700,000 | |
Weighted average exchange rate in U.S. dollars (in dollars per share) | 0.15 | |
Maximum period in months | 12 months | |
Fair value gain/(loss) | $ 400,000 | |
China, Yuan Renminbi | Forward Currency and Forward Swap Contracts | ||
Disclosure of detailed information about hedging instruments [line items] | ||
Contract amount in U.S. Dollars | $ 30,200,000 | |
Weighted average exchange rate in U.S. dollars (in dollars per share) | 0.14 | |
Maximum period in months | 12 months | |
Fair value gain/(loss) | $ 100,000 | |
Euro | ||
Disclosure of detailed information about hedging instruments [line items] | ||
Contract amount in U.S. Dollars | $ 46,200,000 | |
Weighted average exchange rate in U.S. dollars (in dollars per share) | 1.04 | |
Maximum period in months | 8 months | |
Fair value gain/(loss) | $ (3,400,000) | |
Euro | Forward Currency and Forward Swap Contracts | ||
Disclosure of detailed information about hedging instruments [line items] | ||
Contract amount in U.S. Dollars | $ 48,300,000 | |
Weighted average exchange rate in U.S. dollars (in dollars per share) | 1.09 | |
Maximum period in months | 12 months | |
Fair value gain/(loss) | $ (1,400,000) | |
Romanian leu | ||
Disclosure of detailed information about hedging instruments [line items] | ||
Contract amount in U.S. Dollars | $ 37,300,000 | |
Weighted average exchange rate in U.S. dollars (in dollars per share) | 0.20 | |
Maximum period in months | 12 months | |
Fair value gain/(loss) | $ 1,500,000 | |
Romanian leu | Forward Currency and Forward Swap Contracts | ||
Disclosure of detailed information about hedging instruments [line items] | ||
Contract amount in U.S. Dollars | $ 42,200,000 | |
Weighted average exchange rate in U.S. dollars (in dollars per share) | 0.22 | |
Maximum period in months | 12 months | |
Fair value gain/(loss) | $ 900,000 | |
Singapore dollar | ||
Disclosure of detailed information about hedging instruments [line items] | ||
Contract amount in U.S. Dollars | $ 24,700,000 | |
Weighted average exchange rate in U.S. dollars (in dollars per share) | 0.72 | |
Maximum period in months | 12 months | |
Fair value gain/(loss) | $ 1,100,000 | |
Singapore dollar | Forward Currency and Forward Swap Contracts | ||
Disclosure of detailed information about hedging instruments [line items] | ||
Contract amount in U.S. Dollars | $ 29,400,000 | |
Weighted average exchange rate in U.S. dollars (in dollars per share) | 0.75 | |
Maximum period in months | 12 months | |
Fair value gain/(loss) | $ 300,000 | |
Japanese yen | ||
Disclosure of detailed information about hedging instruments [line items] | ||
Contract amount in U.S. Dollars | $ 6,800,000 | |
Weighted average exchange rate in U.S. dollars (in dollars per share) | 0.0072 | |
Maximum period in months | 4 months | |
Fair value gain/(loss) | $ (600,000) | |
Japanese yen | Forward Currency and Forward Swap Contracts | ||
Disclosure of detailed information about hedging instruments [line items] | ||
Contract amount in U.S. Dollars | $ 5,100,000 | |
Weighted average exchange rate in U.S. dollars (in dollars per share) | 0.0069 | |
Maximum period in months | 4 months | |
Fair value gain/(loss) | $ (200,000) | |
Korean won | ||
Disclosure of detailed information about hedging instruments [line items] | ||
Contract amount in U.S. Dollars | $ 4,800,000 | |
Weighted average exchange rate in U.S. dollars (in dollars per share) | 0.0008 | |
Maximum period in months | 4 months | |
Fair value gain/(loss) | $ (700,000) | |
Korean won | Forward Currency and Forward Swap Contracts | ||
Disclosure of detailed information about hedging instruments [line items] | ||
Contract amount in U.S. Dollars | $ 3,600,000 | |
Weighted average exchange rate in U.S. dollars (in dollars per share) | 0.0008 | |
Maximum period in months | 4 months | |
Fair value gain/(loss) | $ (200,000) |
Capital Disclosures (Details)
Capital Disclosures (Details) - USD ($) | 1 Months Ended | |||
Mar. 31, 2023 | Sep. 30, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | |
Factoring of receivables from prior facility program | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Agreement to sell trade receivables, maximum capacity | $ 450,000,000 | |||
Factoring of receivables from facility program | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Agreement to sell trade receivables, maximum capacity | $ 405,000,000 | |||
Accounts receivable sold during period | $ 0 | $ 245,600,000 | ||
Factoring of receivables from supplier financing program | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Accounts receivable sold during period | 18,600,000 | 105,600,000 | ||
Revolving Credit Facility Due Dec 2026 | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Available borrowings | 589,500,000 | |||
Intraday and Overnight Bank Overdraft Facilities | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Available borrowings | $ 198,500,000 | $ 198,500,000 |
Weighted Average Number of Sh_3
Weighted Average Number of Shares Diluted (Details) - shares shares in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Earnings per share [abstract] | |||
Weighted average number of shares (basic) (in shares) | 120.1 | 123.5 | 126.7 |
Dilutive effect of outstanding awards under SBC plans (in shares) | 0.2 | 0.1 | 0 |
Weighted average number of shares (diluted) (in shares) | 120.3 | 123.6 | 126.7 |
Stock-based awards excluded from diluted weighted average per share calculation (in shares) | 0 | 0.4 | 0.3 |
COVID-19 Government Subsidies (
COVID-19 Government Subsidies (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2021 USD ($) | |
Government Subsidies [Abstract] | |
Government subsidies, COVID - 19 | $ 11 |
Reduction in cost of sales | 8 |
Reduction in SG&A | $ 3 |
Commitments, Contingencies an_3
Commitments, Contingencies and Guarantees - Future Minimum IT Support Payments (Details) $ in Millions | Dec. 31, 2023 USD ($) |
Disclosure of other provisions [line items] | |
Total future minimum payments | $ 90.1 |
2024 | |
Disclosure of other provisions [line items] | |
Total future minimum payments | 22.6 |
2025 | |
Disclosure of other provisions [line items] | |
Total future minimum payments | 18.3 |
2026 | |
Disclosure of other provisions [line items] | |
Total future minimum payments | 12.8 |
2027 | |
Disclosure of other provisions [line items] | |
Total future minimum payments | 11.4 |
2028 | |
Disclosure of other provisions [line items] | |
Total future minimum payments | 9.7 |
Thereafter | |
Disclosure of other provisions [line items] | |
Total future minimum payments | $ 15.3 |
Commitments, Contingencies an_4
Commitments, Contingencies and Guarantees - Narrative (Details) RON in Millions, $ in Millions, $ in Millions | 1 Months Ended | 12 Months Ended | 49 Months Ended | 60 Months Ended | |||
Mar. 31, 2019 | Dec. 31, 2023 USD ($) | Jun. 30, 2034 CAD ($) | Jun. 30, 2029 CAD ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Dec. 31, 2021 RON | |
Lessee, Leases, Description [Line Items] | |||||||
Capital expenditures principally for machinery and equipment | $ 125.2 | ||||||
Purchase orders issued for capital expenditures | 22.9 | ||||||
Capital commitments | 8 | ||||||
Letters of credit outstanding | $ 27 | $ 41.8 | |||||
Lease term (in years) | 10 years | ||||||
Initial basic rent expense, term (in years) | 5 years | ||||||
Basic rent expense, term two (in years) | 5 years | ||||||
Customers | 2027 | |||||||
Lessee, Leases, Description [Line Items] | |||||||
Annual rental amounts on leases not yet commenced | $ 0.9 | ||||||
Customers | 2028 | |||||||
Lessee, Leases, Description [Line Items] | |||||||
Annual rental amounts on leases not yet commenced | 1.3 | ||||||
Customers | Thereafter | |||||||
Lessee, Leases, Description [Line Items] | |||||||
Annual rental amounts on leases not yet commenced | 4.3 | ||||||
Guarantees | |||||||
Lessee, Leases, Description [Line Items] | |||||||
Estimated financial effect of contingent liabilities | 27 | 41.8 | |||||
Guarantees | Revolving Credit Facility | |||||||
Lessee, Leases, Description [Line Items] | |||||||
Letters of credit outstanding | $ 10.5 | $ 18 | |||||
Additional income and value-added taxes on subsidiaries | |||||||
Lessee, Leases, Description [Line Items] | |||||||
Estimated financial effect of contingent liabilities | $ 7 | RON 31 | |||||
Forecast | Operating Lease | |||||||
Lessee, Leases, Description [Line Items] | |||||||
Annual rental amounts on leases not yet commenced | $ 2.2 | $ 2.1 |
Segment and Geographic Inform_3
Segment and Geographic Information - Narrative (Details) | 12 Months Ended |
Dec. 31, 2023 segment | |
Operating Segments [Abstract] | |
Number of operating segments | 2 |
Number of reportable segments | 2 |
Segment and Geographic Inform_4
Segment and Geographic Information - Revenue by Segment (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Disclosure of operating segments [line items] | |||
Revenue | $ 7,961 | $ 7,250 | $ 5,634.7 |
Advanced Technology Solutions | |||
Disclosure of operating segments [line items] | |||
Revenue | $ 3,319.8 | $ 2,979 | $ 2,315.1 |
Percentage of entity's revenue (percent) | 42% | 41% | 41% |
Connectivity & Cloud Solutions | |||
Disclosure of operating segments [line items] | |||
Revenue | $ 4,641.2 | $ 4,271 | $ 3,319.6 |
Percentage of entity's revenue (percent) | 58% | 59% | 59% |
Communications | |||
Disclosure of operating segments [line items] | |||
Percentage of entity's revenue (percent) | 33% | 40% | 40% |
Enterprise | |||
Disclosure of operating segments [line items] | |||
Percentage of entity's revenue (percent) | 25% | 19% | 19% |
Segment and Geographic Inform_5
Segment and Geographic Information - Reconciliation to IFRS Earnings Before Income Taxes (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Disclosure of operating segments [line items] | |||
Segment income | $ 383.2 | $ 263.3 | $ 167.7 |
Reconciling items: | |||
Employee SBC expense (note 12) | 55.6 | 51 | 33.4 |
Fair value gain/(loss) | 5.2 | ||
Amortization of intangible assets (excluding computer software) | 39.6 | 40.1 | 25.5 |
Other charges, net of recoveries (note 15) | 15.2 | 6.7 | 10.3 |
Earnings before income taxes | 306.6 | 203.6 | 136 |
TRS | |||
Reconciling items: | |||
Fair value gain/(loss) | $ 45.6 | $ 0 | $ 0 |
Advanced Technology Solutions | |||
Disclosure of operating segments [line items] | |||
Segment margin (as a percentage) | 4.70% | 4.70% | 4.50% |
Connectivity & Cloud Solutions | |||
Disclosure of operating segments [line items] | |||
Segment margin (as a percentage) | 6.20% | 5.10% | 3.90% |
Operating segments | |||
Disclosure of operating segments [line items] | |||
Segment income | $ 445.2 | $ 358 | $ 233.9 |
Operating segments | Advanced Technology Solutions | |||
Disclosure of operating segments [line items] | |||
Segment income | 156.1 | 140.9 | 105 |
Operating segments | Connectivity & Cloud Solutions | |||
Disclosure of operating segments [line items] | |||
Segment income | 289.1 | 217.1 | 128.9 |
Reconciling items | |||
Reconciling items: | |||
Finance costs | 76.6 | 59.7 | 31.7 |
Employee SBC expense (note 12) | 55.6 | 51 | 33.4 |
Other charges, net of recoveries (note 15) | 15.2 | 6.7 | 10.3 |
Reconciling items | TRS | |||
Reconciling items: | |||
Fair value gain/(loss) | (45.6) | 0 | 0 |
Reconciling items | Intangible assets, excluding computer software | |||
Reconciling items: | |||
Amortization of intangible assets (excluding computer software) | $ 36.8 | $ 37 | $ 22.5 |
Segment and Geographic Inform_6
Segment and Geographic Information - External Revenue Allocated by Manufacturing Location (Details) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Thailand | |||
Disclosure of operating segments [line items] | |||
Percentage of entity's revenue (percent) | 46% | 44% | 36% |
China | |||
Disclosure of operating segments [line items] | |||
Percentage of entity's revenue (percent) | 11% | 16% | |
Malaysia | |||
Disclosure of operating segments [line items] | |||
Percentage of entity's revenue (percent) | 11% | 12% | 13% |
Segment and Geographic Inform_7
Segment and Geographic Information - Allocation of Property, Plant and Equipment, Intangible Assets and Goodwill (Details) | Dec. 31, 2023 | Dec. 31, 2022 |
Thailand | ||
Disclosure of geographical areas [line items] | ||
Property, plant and equipment, among countries that exceeded 10% (as a percentage of total) | 25% | 18% |
United States | ||
Disclosure of geographical areas [line items] | ||
Property, plant and equipment, among countries that exceeded 10% (as a percentage of total) | 24% | 25% |
Intangible assets and goodwill, among countries that exceeded 10% (as a percentage of total) | 48% | 48% |
Singapore | ||
Disclosure of geographical areas [line items] | ||
Intangible assets and goodwill, among countries that exceeded 10% (as a percentage of total) | 41% | 42% |
Segment and Geographic Inform_8
Segment and Geographic Information - Customers by Percentage of Total Revenue (Details) - customer | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Revenue | Customer One | |||
Disclosure of major customers [line items] | |||
Percentage of revenue attributable to customer (percent) | 22% | 11% | |
Revenue | Customer Two | |||
Disclosure of major customers [line items] | |||
Percentage of revenue attributable to customer (percent) | 11% | ||
Revenue | Customer Concentration Risk | |||
Disclosure of major customers [line items] | |||
Number of customers | 1 | 2 | 0 |
Accounts Receivable | Customer Concentration Risk | CCS Segment Customer | |||
Disclosure of major customers [line items] | |||
Number of customers | 1 | ||
Accounts Receivable | Customer Concentration Risk | CCS Segment Customer & ATS Segment Customer | |||
Disclosure of major customers [line items] | |||
Number of customers | 2 |
Fire Event (Details)
Fire Event (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Jun. 07, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Disclosure of impairment loss and reversal of impairment loss [line items] | ||||
Inventory write-down | $ 7.2 | |||
Fire Event | ||||
Disclosure of impairment loss and reversal of impairment loss [line items] | ||||
Inventory write-down | $ 94 | |||
Impairment loss recognised in profit or loss | $ 1 | |||
Inventory losses recovered | $ 23 | $ 31 | ||
Estimated insurance recovery receivable | $ 41 |
Uncategorized Items - cls-20231
Label | Element | Value |
Economic Hedge [Member] | ||
Disclosure of financial instruments [text block] | ifrs-full_DisclosureOfFinancialInstrumentsExplanatory | FINANCIAL INSTRUMENTS AND RISK MANAGEMENT: Our financial assets are comprised primarily of cash and cash equivalents, A/R, and derivatives used for hedging purposes. Our financial liabilities are comprised primarily of A/P, certain accrued and other liabilities, the Term Loans, borrowings under the Revolver, lease obligations, and derivatives used for hedging purposes. Subsequent to initial recognition, we record the majority of our financial assets and liabilities at amortized cost except for derivative assets and liabilities, which we measure at fair value. Cash and cash equivalents are comprised of the following: December 31 2022 2023 Cash $ 364.0 $ 366.8 Cash equivalents 10.5 3.6 $ 374.5 $ 370.4 Our current portfolio of cash and cash equivalents consists of bank deposits. The majority of our cash and cash equivalents are held with financial institutions each of which had at December 31, 2023 a Standard and Poor’s short-term rating of A-1 or above. Financial risk management objectives: We have exposures to a variety of financial risks through our operations. We regularly monitor these risks and have established policies and business practices that are intended to mitigate the adverse effects of these potential exposures, including the use of derivative financial instruments, such as foreign currency forward and swap contracts, the TRS Agreement and interest rate swap agreements. We do not enter into or trade financial instruments, including derivative financial instruments, for speculative purposes. (a) Currency risk: Due to the global nature of our operations, we are exposed to exchange rate fluctuations on our financial instruments denominated in various currencies. The majority of our currency risk is driven by operational costs, including income tax expense, incurred in local currencies by our subsidiaries. As part of our risk management program, we attempt to mitigate currency risk through a hedging program using forecasts of our anticipated future cash flows and monetary assets and monetary liabilities denominated in foreign currencies. We enter into foreign currency forward contracts and swaps, generally for periods of up to 12 months, to lock in the exchange rates for future foreign currency transactions, which are intended to reduce the foreign currency risk related to our operating costs and future cash flows denominated in local currencies. While these contracts are intended to reduce the effects of fluctuations in foreign currency exchange rates on our operating costs and cash flows, our hedging strategy does not mitigate the longer-term impacts of changes to foreign exchange rates. Although our functional currency is the U.S. dollar, currency risk on our income tax expense arises as we are generally required to file our tax returns in the local currency for each particular country in which we have operations. While our hedging program is designed to mitigate currency risk vis-à-vis the U.S. dollar, we remain subject to taxable foreign exchange impacts in our translated local currency financial results relevant for tax reporting purposes. We cannot predict changes in currency exchange rates, the impact of exchange rate changes on our operating results, nor the degree to which we will be able to manage the impact of currency exchange rate changes. Such changes could have a material effect on our business, financial performance and financial condition. Our major currency exposures at December 31, 2023 are summarized in U.S. dollar equivalents in the following table. The local currency amounts have been converted to U.S. dollar equivalents using spot rates at December 31, 2023. Canadian Euro Thai baht Mexican peso Cash and cash equivalents $ (0.2) $ 15.6 $ 6.3 $ 1.4 A/R 0.2 55.6 0.1 — Income taxes and value-added taxes receivable — 0.7 1.4 64.3 Other financial assets — 5.6 1.2 0.9 Pension and non-pension post-employment liabilities (50.1) (0.9) (20.8) (5.3) Income taxes and value-added taxes payable (2.5) (0.8) — (12.7) A/P and certain accrued and other liabilities and provisions (69.7) (46.9) (53.3) (22.1) Net financial assets (liabilities) $ (122.3) $ 28.9 $ (65.1) $ 26.5 Foreign currency risk sensitivity analysis: The financial impact of a one-percentage point strengthening or weakening of the following currencies against the U.S. dollar for our financial instruments denominated in such non-functional currencies is summarized in the following table as at December 31, 2023. The financial instruments impacted by a change in exchange rates include our exposures to the above financial assets or liabilities denominated in non-functional currencies and our foreign exchange forward contracts and swaps. Canadian Euro Thai baht Mexican peso Increase (decrease) 1% Strengthening Net earnings $ (0.4) $ — $ (0.3) $ — OCI $ 1.2 $ (0.2) $ 1.1 $ 0.4 1% Weakening Net earnings $ 0.4 $ — $ 0.3 $ — OCI $ (1.2) $ 0.2 $ (1.1) $ (0.4) (b) Interest rate risk: Borrowings under the Credit Facility bear interest at specified rates, plus specified margins. See note 11. Our borrowings under this facility at December 31, 2023 totaled $608.9 (December 31, 2022 — $627.2), comprised in each year of aggregate outstanding borrowings under the Term Loans, and other than ordinary course L/Cs (described below), nil amounts outstanding under the Revolver. Such borrowings expose us to interest rate risk due to the potential variability of market interest rates. Without accounting for the interest rate swaps described below, a one-percentage point increase in these rates would increase interest expense, based on outstanding borrowings of $608.9 as at December 31, 2023, by $6.1 annually. As part of our risk management program, we attempt to mitigate interest rate risk through interest rate swaps. In order to partially hedge against our exposure to interest rate variability on our Term Loans, we have entered into various agreements with third-party banks to swap the variable interest rate with a fixed rate of interest for a portion of the borrowings under our Term Loans. At December 31, 2023, we had: (i) interest rate swaps hedging the interest rate risk associated with $100.0 of our Initial Term Loan borrowings that expire in June 2024 (Initial Swaps); (ii) interest rate swaps hedging the interest rate risk associated with $100.0 of our Initial Term Loan borrowings (and any subsequent term loans replacing the Initial Term Loan), for which the cash flows commence upon the expiration of the Initial Swaps and continue through December 2025; (iii) interest rate swaps hedging the interest rate risk associated with $100.0 of outstanding borrowings under the Incremental Term Loan that expire in December 2025 (Incremental Swaps); and (iv) interest rate swaps hedging the interest rate risk associated with an additional $130.0 of our Incremental Term Loan borrowings that expire in December 2025 (Additional Incremental Swaps). The option to cancel up to $50.0 of the notional amount of the Additional Incremental Swaps from January 2024 through October 2025 was terminated in January 2024. T he terms of the interest rate swap agreements with respect to the floating market rate and the interest payment dates match that of the underlying debt, such that any hedge ineffectiveness is not expected to be significant. We amended our Credit Facility in June 2023 to replace LIBOR with Adjusted Term SOFR. See note 11. In June 2023, all of our interest rate swap agreements were similarly amended. None of these amendments (individually or in the aggregate) had a significant impact on our consolidated financial statements. We continue to apply hedge accounting to our interest rate swaps. At December 31, 2023, the interest rate risk related to $278.9 of borrowings under the Credit Facility was unhedged, consisting of unhedged amounts outstanding under the Term Loans ($180.4 under the Initial Term Loan and $98.5 under the Incremental Term Loan), and no amounts outstanding (other than ordinary course L/Cs) under the Revolver (December 31, 2022 — $297.2 unhedged, consisting of $180.4 under the Initial Term Loan and $116.8 under the Incremental Term Loan, and no amounts outstanding (other than ordinary course L/Cs) under the Revolver). A one-percentage point increase in applicable interest rates would increase interest expense, based on the outstanding borrowings under the Credit Facility at December 31, 2023, and including the impact of our interest rate swap agreements, by $2.8 annually. We obtain third-party valuations of the swaps under the interest rate swap agreements. The valuations of the swaps are primarily measured through various pricing models or discounted cash flow analyses that incorporate observable market parameters, such as interest rate yield curves and volatility, and credit risk adjustments. The valuations of the interest rate swaps are measured primarily based on Level 2 data inputs of the fair value measurement hierarchy. The unrealized portion of the change in fair value of the swaps is recorded in OCI. The realized portion of the change in fair value of the swaps is released from accumulated OCI and recognized under finance costs in our consolidated statement of operations in the respective interest payment periods. At December 31, 2023, the fair value of our interest rate swap agreements was an unrealized gain of $13.2 ( December 31, 2022 — an unrealized gain of $18.7 ), which we recorded in other current assets and other non-current assets on our consolidated balance sheet . As we have swapped $330.0 of our borrowings under the Term Loans from floating to fixed rates as at December 31, 2023 , the financial impact of a one-percentage point increase in the floating market interest rate would increase the unrealized gain by $5.8 and a one-percentage point decrease in the floating interest rate would decrease our unrealized gain on the interest rate swaps by $5.7 . In prior years, our A/R sales program and three customer SFPs that were indexed to LIBOR transitioned to alternative benchmark rates with predetermined spreads, and our lease arrangements with progress payments indexed to LIBOR transitioned to SOFR-based benchmark rates. None of these transitions (individually or in the aggregate) had a significant impact on our consolidated financial statements. (c) Equity price risk: We entered into the TRS Agreement with a third-party bank with respect to an original notional amount of 3.0 million of our SVS to manage our cash flow requirements and exposure to fluctuations in the price of our SVS in connection with the settlement of certain outstanding equity awards under our SBC plans. If the value of the TRS (as defined in the TRS Agreement) decreases over the term of the TRS Agreement, we are obligated to pay the counterparty the amount of such decrease upon Settlement. See note 2( o ). The counterparty acquired the entire original notional amount at a weighted average price of $12.73 per share. The TRS Agreement provides for automatic annual one-year extensions (subject to specified conditions), and may be terminated by either party (in whole or in part) at any time. In September 2023, we terminated a portion of the TRS Agreement by reducing the notional amount by 0.5 million SVS. In February 2024, we terminated a further portion of the TRS Agreement by reducing the notional amount by an additional 1.25 million SVS. In connection with the September 2023 and February 2024 partial terminations, we received $5.0 and $32.3 from the counterparty, respectively, each of which was, or will be, recorded in cash provided by financing activities in our consolidated statement of cash flows. At December 31, 2023, the fair value of the TRS Agreement was an unrealized gain of $40.6 (December 31, 2022 — de minimis ) , which we recorded in other current assets on our consolidated balance sheet. See note 12 for TRS FVAs recorded in our consolidated statement of operations. (d) Credit risk: Credit risk refers to the risk that a counterparty may default on its contractual obligations resulting in a financial loss to us. We believe our credit risk of counterparty non-performance continues to be relatively low. We are in regular contact with our customers, suppliers and logistics providers, and have not experienced significant counterparty credit-related non-performance in 2023 or 2022. However, if a key supplier (or any company within such supplier's supply chain) or customer fails to comply with their contractual obligations, this could result in a significant financial loss to us. We would also suffer a significant financial loss if an institution from which we purchased foreign currency exchange contracts or swaps, interest rate swaps, or annuities for our pension plans, or the counterparty to our TRS, defaults on their contractual obligations. With respect to our financial market activities, we have adopted a policy of dealing only with counterparties we deem to be creditworthy to help mitigate the risk of financial loss from defaults. We monitor the credit risk of the counterparties with whom we conduct business, through a combined process of credit rating reviews and portfolio reviews. To attempt to mitigate the risk of financial loss from defaults under our foreign currency forward contracts and swaps, our interest rate swaps and our TRS Agreement, our contracts are held by counterparty financial institutions, each of which had a Standard and Poor’s rating of A-2 or above at December 31, 2023. In addition, we maintain cash and short-term investments in highly-rated investments or on deposit with major financial institutions. Each financial institution with which we had our A/R sales program and our SFPs had a Standard and Poor’s short-term rating of A-2 or above and a long-term rating of A- or above at December 31, 2023. The financial institutions from which annuities have been purchased for the defined benefit component of our U.K. Main pension plan are governed by local regulatory bodies. We also provide unsecured credit to our customers in the normal course of business. Customer exposures that potentially subject us to credit risk include our A/R, inventory on hand, and non-cancellable purchase orders in support of customer demand. From time to time, we extend the payment terms applicable to certain customers, and/or provide longer payment terms when deemed commercially reasonable. Longer payment terms could adversely impact our working capital requirements, and increase our financial exposure and credit risk. We attempt to mitigate customer credit risk by monitoring our customers’ financial condition and performing ongoing credit evaluations as appropriate. In certain instances, we obtain L/Cs or other forms of security from our customers. We may also purchase credit insurance from a financial institution to reduce our credit exposure to certain customers. We consider credit risk in determining our allowance for doubtful accounts, and we believe that such allowance, as adjusted from time to time, is adequate. The carrying amount of financial assets recorded in our consolidated financial statements, net of our allowance for doubtful accounts, represents our estimate of maximum exposure to credit risk. No significant adjustments were made to our allowance for doubtful accounts during 2023 in connection with our ongoing assessments and monitoring initiatives. At December 31, 2023, less than 1% of our gross A/R was over 90 days past due (December 31, 2022 — approximately 1%). A/R are net of an allowance for doubtful accounts of $8.4 at December 31, 2023 (December 31, 2022 — $7.9). (e) Liquidity risk: Liquidity risk is the risk that we may not have cash available to satisfy our financial obligations as they come due. The majority of our financial liabilities recorded in accounts payable, accrued and other current liabilities and provisions are due within 90 days. We manage liquidity risk through maintenance of cash on hand and access to the various financing arrangements described in notes 4 and 11. We believe that cash flow from operating activities, together with cash on hand, cash from accepted sales of A/R, and borrowings available under the Revolver and potentially available under uncommitted intraday and overnight bank overdraft facilities, are sufficient to fund our currently anticipated financial obligations, and will remain available in the current environment. As our A/R sales program and SFPs are each uncommitted, there can be no assurance that any participant bank will purchase any of the A/R that we wish to sell. Fair values: We estimate the fair value of each class of financial instrument. The carrying values of cash and cash equivalents, our A/R, A/P, accrued liabilities and provisions, and our borrowings under the Revolver approximate their fair values due to their short-term nature. The carrying value of the Term Loans approximates their fair value as they bear interest at a variable market rate. The fair values of foreign currency contracts are estimated using generally accepted valuation models based on a discounted cash flow analysis with inputs of observable market data, including currency rates and discount factors. Discount factors are adjusted by our own credit risk or the credit risk of the counterparty, depending on whether the fair values are in liability or asset positions, respectively. We obtained third-party valuations of the swaps under our interest rate swap agreements and the TRS Agreement. The valuations of our interest rate swap agreements are primarily measured through various pricing models or discounted cash flow analyses that incorporate observable market parameters, such as interest rate yield curves and volatility, and credit risk adjustments. The valuation of the TRS is primarily measured by reference to observable market data, including movements in the price of our SVS over the valuation period and the volume weighted average price of counterparty SVS purchases, adjusted for required interest payments based on SOFR, the rate applicable to the TRS Agreement. The valuations of both interest rate swaps and the TRS Agreement are based on Level 2 data inputs of the fair value measurement hierarchy (described below). See note 18 for the input levels used to measure the fair value of our pension assets. Foreign currency forward and swap contracts are valued using an income approach, by comparing the current quoted market forward rates to our contract rates and discounting the values with appropriate market observable credit risk adjusted rates. Fair value measurements: In the table below, we have segregated our financial assets and liabilities that are measured at fair value, based on the inputs used to determine fair value at the measurement date. The three levels within the fair value hierarchy, based on the reliability of inputs, are as follows: • Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities; • Level 2 inputs are inputs other than quoted prices included in Level 1 that are observable for the asset or liability either directly ( i.e. prices) or indirectly ( i.e. derived from prices); and • Level 3 inputs are inputs for the asset or liability that are not based on observable market data ( i.e. unobservable inputs). December 31, 2022 December 31, 2023 Note Level 1 Level 2 Level 1 Level 2 Assets: Interest rate swaps 9 $ — $ 18.7 $ — $ 13.2 Foreign currency forwards and swaps — 18.9 — 15.8 TRS — — — 40.6 $ — $ 37.6 $ — $ 69.6 Liabilities: Foreign currency forwards and swaps — (13.7) — (9.3) $ — $ (13.7) $ — $ (9.3) We have not valued any of the financial instruments described in the table above using Level 3 (unobservable) inputs. There were no transfers of fair value measurements between Level 1 and Level 2 of the fair value hierarchy in 2023 or 2022. Currency derivatives and hedging activities: We enter into foreign currency forward contracts and foreign currency swaps to hedge our foreign currency risk related to anticipated future cash flows, monetary assets and monetary liabilities denominated in foreign currencies . At December 31, 2023 and December 31, 2022, we had foreign currency forwards and swaps to trade U.S. dollars in exchange for the following currencies: As at December 31, 2023 Currency Contract amount Weighted average (i) Maximum Fair value Canadian dollar $ 202.1 0.75 12 $ 3.9 Thai baht 156.3 0.03 12 2.9 Malaysian ringgit 93.6 0.22 12 (1.5) Mexican peso 86.9 0.06 12 1.8 British pound 2.7 1.26 4 (0.1) Chinese renminbi 30.2 0.14 12 0.1 Euro 48.3 1.09 12 (1.4) Romanian leu 42.2 0.22 12 0.9 Singapore dollar 29.4 0.75 12 0.3 Japanese yen 5.1 0.0069 4 (0.2) Korean won 3.6 0.0008 4 (0.2) Total (ii) $ 700.4 $ 6.5 As at December 31, 2022 Currency Contract amount Weighted average (i) Maximum Fair value Canadian dollar $ 194.2 0.75 12 $ (1.9) Thai baht 138.0 0.03 12 6.8 Malaysian ringgit 127.8 0.22 12 1.3 Mexican peso 56.6 0.05 12 0.9 British pound 2.6 1.18 4 (0.2) Chinese renminbi 45.7 0.15 12 0.4 Euro 46.2 1.04 8 (3.4) Romanian leu 37.3 0.20 12 1.5 Singapore dollar 24.7 0.72 12 1.1 Japanese yen 6.8 0.0072 4 (0.6) Korean won 4.8 0.0008 4 (0.7) Total (ii) $ 684.7 $ 5.2 (i) Represents the U.S. dollar equivalent (not in millions) of one unit of the foreign currency, weighted based on the notional amounts of the underlying foreign currency forward and swap contracts outstanding at December 31, 2023 or December 31, 2022, as applicable. (ii) As of December 31, 2023, the fair value of outstanding foreign currency forward and swap contracts related to effective cash flow hedges where we applied hedge accounting was a gain of $6.1 (December 31, 2022 — gain of $6.6), and the fair value of outstanding foreign currency forward and swap contracts related to economic hedges where we recorded the changes in the fair values of such contracts through our consolidated statement of operations was a gain of $0.4 (December 31, 2022 — loss of $1.4). At December 31, 2023, the fair value of our outstanding currency forward and swap contracts was a net unrealized gain of $6.5 (December 31, 2022 — net unrealized gain of $5.2), resulting from fluctuations in foreign exchange rates between the contract execution and the period-end date. Changes in the fair value of hedging derivatives to which we apply cash flow hedge accounting, to the extent effective, are deferred in accumulated OCI until the expenses or items being hedged are recognized in our consolidated statement of operations. Any hedge ineffectiveness, which at December 31, 2023 was not significant, is recognized immediately in our consolidated statement of operations. At December 31, 2023, we recorded $15.8 of derivative assets in other current assets and $9.3 of derivative liabilities in accrued and other current liabilities (December 31, 2022 — $18.9 of derivative assets in other current assets and $13.7 of derivative liabilities in accrued and other current liabilities). Certain foreign currency forward and swap contracts to trade U.S. dollars do not qualify as hedges. We mark these contracts to market each period in our consolidated statement of operations. See note 2( o ). |