COVER
COVER | 12 Months Ended |
Dec. 31, 2021shares | |
Document Information [Line Items] | |
Document Type | 40-F |
Document Registration Statement | false |
Document Annual Report | true |
Document Period End Date | Dec. 31, 2021 |
Current Fiscal Year End Date | --12-31 |
Entity File Number | 001-39684 |
Entity Registrant Name | CI Financial Corp. |
Entity Central Index Key | 0001829948 |
Document Fiscal Year Focus | 2021 |
Document Fiscal Period Focus | FY |
Entity Incorporation, State or Country Code | A6 |
Entity Primary SIC Number | 6199 |
Entity Address, Address Line One | 2 Queen Street East |
Entity Address, Address Line Two | Twentieth Floor |
Entity Address, City or Town | Toronto |
Entity Address, State or Province | ON |
Entity Address, Country | CA |
Entity Address, Postal Zip Code | M5C 3G7 |
City Area Code | 416 |
Local Phone Number | 364-1145 |
Title of 12(b) Security | Common Shares |
Trading Symbol | CIXX |
Security Exchange Name | NYSE |
Annual Information Form | true |
Audited Annual Financial Statements | true |
Entity Common Stock, Shares Outstanding | 197,422,270 |
Entity Current Reporting Status | Yes |
Entity Interactive Data Current | Yes |
Entity Emerging Growth Company | false |
ICFR Auditor Attestation Flag | true |
Amendment Flag | false |
Business Contact | |
Document Information [Line Items] | |
Contact Personnel Name | Puglisi & Associates |
Entity Address, Address Line One | 850 Library Avenue |
Entity Address, Address Line Two | Suite 204 |
Entity Address, City or Town | Newark |
Entity Address, State or Province | DE |
Entity Address, Postal Zip Code | 19711 |
City Area Code | 302 |
Local Phone Number | 738-6680 |
AUDIT INFORMATION
AUDIT INFORMATION | 12 Months Ended |
Dec. 31, 2021 | |
Audit Information [Abstract] | |
Auditor Name | Ernst & Young LLP |
Auditor Location | Toronto, Canada |
Auditor Firm ID | 1263 |
CONSOLIDATED STATEMENTS OF FINA
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION - CAD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Current | ||
Cash and cash equivalents [note 2] | $ 230,779 | $ 483,598 |
Client and trust funds on deposit | 1,199,904 | 973,143 |
Investments [note 12] | 131,772 | 133,375 |
Accounts receivable and prepaid expenses [note 2] | 272,962 | 240,849 |
Income taxes receivable | 3,607 | 7,687 |
Total current assets | 1,839,024 | 1,838,652 |
Capital assets, net [notes 2 and 3] | 52,596 | 46,978 |
Right-of-use assets [notes 2 and 8] | 142,606 | 50,620 |
Intangibles [notes 2 and 4] | 6,185,237 | 4,290,998 |
Deferred income taxes [note 11] | 56,901 | 7,846 |
Other assets [notes 2 and 5] | 383,187 | 124,742 |
Total assets | 8,659,551 | 6,359,836 |
Current | ||
Accounts payable and accrued liabilities [note 2] | 369,081 | 315,884 |
Current portion of provisions and other financial liabilities [notes 2 and 7] | 572,432 | 275,710 |
Dividends payable | 71,072 | 75,297 |
Client and trust funds payable | 1,202,079 | 961,080 |
Income taxes payable | 19,035 | 3,209 |
Current portion of long-term debt [note 6] | 444,486 | 203,805 |
Current portion of lease liabilities [notes 2 and 8] | 20,216 | 14,926 |
Total current liabilities | 2,698,401 | 1,849,911 |
Long-term debt [note 6] | 3,331,552 | 2,252,311 |
Provisions and other financial liabilities [notes 2 and 7] | 379,641 | 107,842 |
Deferred income taxes [note 11] | 480,777 | 470,735 |
Lease liabilities [notes 2 and 8] | 153,540 | 61,307 |
Total liabilities | 7,043,911 | 4,742,106 |
Equity | ||
Share capital | 1,810,153 | 1,867,997 |
Contributed surplus | 28,368 | 22,817 |
Deficit | (226,715) | (287,621) |
Accumulated other comprehensive loss | (23,289) | (20,746) |
Total equity attributable to the shareholders of the Company | 1,588,517 | 1,582,447 |
Non-controlling interests [note 2] | 27,123 | 35,283 |
Total equity | 1,615,640 | 1,617,730 |
Total liabilities and equity | $ 8,659,551 | $ 6,359,836 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME - CAD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
REVENUE | ||
Management fees | $ 1,792,103 | $ 1,635,773 |
Administration fees | 862,635 | 364,408 |
Redemption fees | 4,507 | 8,230 |
Realized and unrealized gain on investments | 19,212 | 6,949 |
Other income [note 5] | 48,560 | 37,424 |
Total revenue | 2,727,017 | 2,052,784 |
EXPENSES | ||
Selling, general and administrative | 702,276 | 449,439 |
Trailer fees | 551,700 | 509,444 |
Advisor and dealer fees | 424,505 | 253,376 |
Deferred sales commissions | 5,714 | 7,492 |
Amortization and depreciation [note 18] | 96,821 | 43,514 |
Interest and lease finance [notes 6 and 8] | 109,670 | 65,440 |
Other [notes 5 and 7] | 250,165 | 81,332 |
Total expenses | 2,140,851 | 1,410,037 |
Income before income taxes | 586,166 | 642,747 |
Provision for (recovery of) income taxes [note 11] | ||
Current | 216,211 | 168,923 |
Deferred | (42,419) | (1,722) |
Income tax expense reported in the consolidated statements of income | 173,792 | 167,201 |
Net income for the year | 412,374 | 475,546 |
Net income (loss) attributable to non-controlling interests | 3,046 | (432) |
Net income attributable to shareholders | $ 409,328 | $ 475,978 |
Basic earnings per share attributable to shareholders (in CAD per share) | $ 2.03 | $ 2.22 |
Diluted earnings per share attributable to shareholders (in CAD per share) | $ 2.02 | $ 2.21 |
Other comprehensive loss, net of tax | ||
Exchange differences on translation of foreign operations | $ (2,675) | $ (24,350) |
Total other comprehensive loss, net of tax | (2,675) | (24,350) |
Comprehensive income for the year | 409,699 | 451,196 |
Comprehensive income (loss) attributable to non-controlling interests | 2,914 | (3,781) |
Comprehensive income attributable to shareholders | $ 406,785 | $ 454,977 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY - CAD ($) $ in Thousands | Total | Total shareholders’ equity | Share capital | Contributed surplus | Deficit | Accumulated other comprehensive loss | Non-controlling interests |
Equity, beginning balance at Dec. 31, 2019 | $ 1,499,356 | $ 1,493,988 | $ 1,944,311 | $ 23,435 | $ (474,013) | $ 255 | $ 5,368 |
Comprehensive income | 451,196 | 454,977 | 475,978 | (21,001) | (3,781) | ||
Dividends declared | (150,765) | (150,765) | (150,765) | ||||
Shares repurchased, net of tax | (255,684) | (255,684) | (120,236) | (135,448) | |||
Business combination and acquisition of minority interests [note 2] | 29,542 | (3,373) | (3,373) | 32,915 | |||
Issuance for acquisition of subsidiary, net of issuance costs | 35,434 | 35,434 | 35,434 | ||||
Issuance of share capital for equity-based plans, net of tax | 0 | 8,488 | (8,488) | ||||
Compensation expense for equity-based plans, net of tax | 7,870 | 7,870 | 7,870 | ||||
Net contributions (distributions) from non-controlling interests | 781 | 781 | |||||
Change during the year | 118,374 | 88,459 | (76,314) | (618) | 186,392 | (21,001) | 29,915 |
Equity, ending balance at Dec. 31, 2020 | 1,617,730 | 1,582,447 | 1,867,997 | 22,817 | (287,621) | (20,746) | 35,283 |
Comprehensive income | 409,699 | 406,785 | 409,328 | (2,543) | 2,914 | ||
Dividends declared | (142,481) | (142,481) | (142,481) | ||||
Shares repurchased, net of tax | (355,819) | (355,819) | (147,585) | (208,234) | |||
Business combination and acquisition of minority interests [note 2] | (6,439) | 2,293 | 2,293 | (8,732) | |||
Issuance for acquisition of subsidiary, net of issuance costs | 78,916 | 78,916 | 78,916 | ||||
Issuance of share capital for equity-based plans, net of tax | 0 | 10,825 | (10,825) | ||||
Compensation expense for equity-based plans, net of tax | 16,376 | 16,376 | 16,376 | ||||
Net contributions (distributions) from non-controlling interests | (2,342) | (2,342) | |||||
Change during the year | (2,090) | 6,070 | (57,844) | 5,551 | 60,906 | (2,543) | (8,160) |
Equity, ending balance at Dec. 31, 2021 | $ 1,615,640 | $ 1,588,517 | $ 1,810,153 | $ 28,368 | $ (226,715) | $ (23,289) | $ 27,123 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - CAD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
OPERATING ACTIVITIES | ||
Net income for the year | $ 412,374 | $ 475,546 |
Add (deduct) items not involving cash | ||
Realized and unrealized gain | (20,584) | (6,949) |
Fair value change - acquisition liabilities [note 7] | 149,904 | 0 |
Contingent consideration recorded as compensation [note 7] | 7,198 | 0 |
Equity-based compensation | 22,005 | 10,657 |
Amortization and depreciation | 96,821 | 43,514 |
Deferred income taxes | (42,419) | (1,722) |
Loss on repurchases of long-term debt [note 6] | 24,920 | 2,328 |
Cash provided by operating activities before net change in operating assets and liabilities | 650,219 | 523,374 |
Net change in operating assets and liabilities | 15,741 | 18,595 |
Cash provided by operating activities | 665,960 | 541,969 |
INVESTING ACTIVITIES | ||
Purchase of investments | (5,101) | (17,648) |
Proceeds on sale of investments | 15,412 | 23,599 |
Additions to capital assets | (7,798) | (11,990) |
Increase in other assets | (167,378) | (47,645) |
Additions to intangibles | (12,420) | (17,132) |
Cash paid to settle acquisition liabilities [note 7] | (290,002) | 0 |
Acquisitions, net of cash acquired [note 2] | (934,589) | (527,298) |
Cash used in investing activities | (1,401,876) | (598,114) |
FINANCING ACTIVITIES | ||
Repayment of long-term debt | (640,419) | (569,015) |
Issuance of long-term debt | 1,704,795 | 1,471,022 |
Repurchase of long-term debt | (50,732) | (55,985) |
Repurchase of share capital | (364,319) | (257,939) |
Payment of lease liabilities | (16,667) | (12,168) |
Net contributions from (distributions to) non-controlling interests | (3,114) | 781 |
Dividends paid to shareholders [note 10] | (146,447) | (155,313) |
Cash provided by financing activities | 483,097 | 421,383 |
Net increase (decrease) in cash and cash equivalents during the year | (252,819) | 365,238 |
Cash and cash equivalents at beginning of period | 483,598 | 118,360 |
Cash and cash equivalents, end of year | 230,779 | 483,598 |
Interest paid | 115,563 | 62,997 |
Income taxes paid | $ 193,900 | $ 147,804 |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES These consolidated financial statements of CI have been prepared in accordance with International Financial Reporting Standards [“IFRS”] as issued by the International Accounting Standards Board [“IASB”]. These consolidated financial statements were authorized for issuance by the Board of Directors of CI on March 31, 2022. BASIS OF PRESENTATION The consolidated financial statements of CI have been prepared on a historical cost basis, except for certain financial instruments that have been measured at fair value. The consolidated financial statements have been prepared on a going concern basis. CI’s presentation currency is the Canadian dollar, which is CI’s functional currency. BASIS OF CONSOLIDATION The consolidated financial statements include the accounts of CI and all its subsidiaries on a consolidated basis after elimination of intercompany transactions and balances. Subsidiaries are entities over which CI has control, when CI has the power, directly or indirectly, to govern the financial and operating policies of an entity, is exposed to variable returns from its activities, and is able to use its power to affect such variable returns to which it is exposed. CI’s principal subsidiaries are as follows: • CI’s wholly owned Canadian subsidiaries include CI Investments Inc. [“CI Investments”], Assante Wealth Management (Canada) Ltd. [“AWM”], CI Investment Services Inc. [“CI Investment Services”], Wealthbar Financial Services Inc. [“Wealthbar”], CI Private Counsel LP, and their respective subsidiaries. CI has a controlling interest in Marret Asset Management Inc. [“Marret”] and Aligned Capital Distributions Inc. [“Aligned”], and their respective subsidiaries. • CI’s wholly owned U.S. subsidiaries include Balasa Dinverno Foltz LLC, Bowling Portfolio Management LLC, Dowling & Yahnke, LLC, Doyle Wealth Management, Segall Bryant and Hamil, LLC, Surevest LLC, and The Roosevelt Investment Group, Inc. CI has a controlling interest in Barrett Asset Management, LLC, Brightworth, LLC [“Brightworth”], Budros, Ruhlin & Roe, Inc., Columbia Pacific Wealth Management, Gofen and Glossberg, LLC, Matrix Capital Advisors, LLC, McCutchen Group LLC, OCM Capital Partners LLC [“OCM”], Portola Partners Group, Radnor Financial Advisors [“Radnor”], Regent Atlantic Capital, LLC [“Regent”], RGT Wealth Advisors, LLC, Stavis & Cohen Financial, LLC, R.H. Bluestein & Co, The Cabana Group, LLC [“Cabana”] , and their respect ive subsidiaries [together, the “U.S. RIAs”] . • CI has a controlling interest in its Australian subsidiary, GSFM Pty Limited [“GSFM”] and its subsidiaries. • For subsidiaries Marret, OCM and Cabana, where CI holds a controlling interest, a non-controlling interest is recorded in the consolidated financial statements of income and comprehensive income to reflect the non-controlling interest’s share of the income and comprehensive income, and a non-controlling interest is recorded within equity in the consolidated statements of financial position to reflect the non-controlling interest’s share of the net assets. For all other subsidiaries where CI holds a controlling interest, put and call options, or other exchange agreements, with respect to the remaining minority interests in the acquired businesses may exist. CI considers the non-controlling interest to have been acquired and consolidates 100% of the income and comprehensive income in the consolidated statements of income and comprehensive income, and records a corresponding liability with respect to the present value of the amount that could be required to be paid to the minority interest holders under the put arrangements. Hereinafter, CI and its subsidiaries are referred to as CI. CI manages a range of mutual funds, segregated funds, structured products and other funds that meet the definition of structured entities under IFRS. CI earns fees for providing management and administrative services to these investment funds. Fees are calculated on assets under management in these funds, which totalled $152.1 billion as at December 31, 2021 [2020 – $135.1 billion]. CI does not consolidate these investment funds because the form of fees and ownership interest are not significant enough to meet the definition of control under IFRS. CI provides no guarantees against the risk of financial loss to the investors of these investment funds. REVENUE RECOGNITION Revenue is recognized when control of the goods or services are transferred by CI at an amount that reflects the consideration to which CI expects to be entitled in exchange for those goods or services. Revenue is measured at the fair value of the consideration received or receivable. In addition to these general principles, CI applies the following specific revenue recognition policies: Management fees are based upon the net asset value of the funds managed by CI and are recognized on an accrual basis. Administration fees and other income are recognized as services are provided under contractual arrangements. Administration fees include commission revenue, which is recorded on a trade date basis and advisory fees, which are recorded when the services related to the underlying engagements are completed. Redemption fees payable by security holders of deferred sales charge mutual funds, the sales commission of which was financed by CI, are recognized as revenue on the trade date of the redemption of the applicable mutual fund securities. FINANCIAL INSTRUMENTS Classification and measurement of financial assets CI classifies its financial assets as fair value through profit or loss [“FVPL”] and amortized cost. CI had no financial assets classified as fair value through other comprehensive income [“FVOCI”] during the year ended December 31, 2021. The classification of financial assets at initial recognition depends on the financial asset’s contractual cash flow characteristics and CI’s business model for managing them. With the exception of trade receivables, which do not contain a significant financing component and are measured at the transaction price in accordance with IFRS 15, Revenue from Contracts with Customers [“IFRS 15”], all financial assets are initially measured at fair value adjusted for transaction costs. Financial assets classified as FVPL are carried at fair value in the consolidated statements of financial position and any gains or losses are recorded in net income in the period in which they arise. Financial assets classified as FVPL include cash and cash equivalents, investments and other assets. Financial assets are classified at amortized cost using the effective interest method if they meet the following conditions and are not designated as FVPL: • they are held within a business model whose objective is to hold the financial assets and collect their contractual cash flows • the contractual terms of the financial assets give rise to cash flows that are solely payments of principal and interest on the principal amount outstanding Financial assets classified at amortized cost include client and trust funds on deposit, accounts receivable and other assets. Cash and cash equivalents Cash and cash equivalents include cash on deposit, highly liquid investments and interest-bearing deposits with original maturities of 90 days or less. Client and trust funds Client and trust funds on deposit include amounts representing cash held in trust with Canadian financial institutions for clients in respect of self-administered Registered Retirement Savings Plans and Registered Retirement Income Funds, and amounts received from clients for which the settlement date on the purchase of securities has not occurred or accounts in which the clients maintain a cash balance. Client and trust funds on deposit also include amounts for client transactions that are entered into on either a cash or margin basis and recorded on the trade date of the transaction. Amounts are due from clients on the settlement date of the transaction for cash accounts. For margin accounts, CI extends credit to a client for the purchase of securities, collateralized by the financial instruments in the client’s account. Amounts loaned are limited by margin regulations of the Investment Industry Regulatory Organization of Canada [“IIROC”] and other regulatory authorities, and are subject to CI’s credit review and daily monitoring procedures. The corresponding liabilities related to the above accounts and transactions are included in client and trust funds payable. Investments Investments include CI Investment Services securities owned, at market, principally for the purpose of selling or repurchasing in the near term. Securities owned, at market, are classified as FVPL and are initially recognized on the consolidated statements of financial position at fair value with transaction costs expensed as incurred. Subsequent realized and unrealized gains and losses are included in administration fees in the consolidated statements of income and comprehensive income in the period in which they arise. Securities transactions are recorded on a trade date basis. Market value is based on quoted prices where an active market exists. For securities in non-active markets, market value is based on valuation techniques and management’s best estimate of fair value. Also included in investments are marketable securities that consist of CI’s seed capital investments in CI mutual funds and strategic investments. Investments in marketable securities are measured at fair value and recognized on the trade date. Mutual fund securities are valued using the net asset value per unit of each fund. Realized and unrealized gains and losses are recognized using average cost and recorded in net income. Distributions from mutual fund securities are recorded as other income. Distributions that are reinvested increase the cost base of the mutual fund investments. Impairment of financial assets CI recognizes a loss allowance for expected credit losses on financial assets that are measured at amortized cost. At each reporting date, the loss allowance for the financial asset is measured at an amount equal to the lifetime expected credit losses if the credit risk on the financial asset has increased significantly since initial recognition. If at the reporting date, the credit risk on the financial asset has not increased significantly since initial recognition, the loss allowance is measured for the credit risk on the financial asset at an amount equal to 12 months of expected credit losses. For trade receivables, CI applies the simplified approach to providing for expected credit losses, which allows for the use of a lifetime expected credit loss provision. Impairment losses on financial assets carried at amortized cost are reversed in subsequent periods if the amount of the loss decreases and is related to an event occurring after the impairment was recognized. Classification and measurement of financial liabilities CI classifies its financial liabilities as FVPL and amortized cost. Financial liabilities are initially measured at fair value, and, where applicable, adjusted for transaction costs unless the financial liability is classified at FVPL. Subsequently, financial liabilities are measured at amortized cost using the effective interest method except for derivatives and financial liabilities designated at FVPL, which are carried subsequently at fair value with gains or losses recognized in net income. Financial liabilities classified at FVPL include contingent consideration and put option payables included in provisions and other financial liabilities. All other financial liabilities are measured at amortized cost. Derivative financial instruments and hedge accounting CI may use derivative financial instruments such as interest rate swaps and forward foreign exchange contracts to manage its interest rate and foreign currency risk related to long-term debt. Derivative financial instruments are initially recognized at fair value on the date a derivative contract is entered into and are subsequently remeasured at fair value. The accounting for subsequent changes depends on whether the derivative is designated as a hedging instrument, and if so, the nature of the item being hedged and the type of hedge relationship designated. To qualify for hedge accounting, the hedging relationship must meet all of the following requirements: • there is an economic relationship between the hedged item and the hedging instrument • the effect of credit risk does not dominate the value changes that result from that economic relationship • the hedge ratio of the hedging relationship is the same as that resulting from the quantity of the hedged item that the entity actually hedges and the quantity of the hedging instrument that the entity actually uses to hedge that quantity of hedged item CI entered into an interest rate swap designated as a fair value hedge to manage the effect of changes in interest rates relating to its fixed-rate debentures. The swap involves exchanging interest payments without exchanging the notional amount on which the payments are based. The exchange of payments are recorded as an adjustment to interest expense on the hedged item. Changes in the fair value of the swap are recorded in the consolidated statements of income and comprehensive income in other expenses, together with any changes in the fair value of the hedged liability attributable to the hedged risk as an offset. FAIR VALUE MEASUREMENT CI uses valuation techniques to determine the fair value of financial instruments where active market quotes are not available. This involves developing estimates and assumptions consistent with how market participants would price the instrument. CI maximizes the use of observable data when developing estimates and assumptions, but this is not always available. In that case management uses the best information available. All assets and liabilities for which fair value is measured or disclosed in the consolidated financial statements are categorized within the fair value hierarchy, described as follows, based on the lowest level input that is significant to the fair value measurement as a whole: • Level 1 – valuation based on quoted prices (unadjusted) observed in active markets for identical assets or liabilities • Level 2 – valuation techniques based on inputs that are quoted prices of similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; inputs other than quoted prices used in a valuation model that are observable for that instrument; and inputs that are derived from or corroborated by observable market data by correlation or other means • Level 3 – valuation techniques with significant unobservable market inputs For assets and liabilities that are recognized in the consolidated financial statements on a recurring basis, CI determines whether transfers have occurred between levels in the hierarchy by reassessing the categorization at the end of each reporting period. COLLATERALIZED SECURITIES TRANSACTIONS CI engages in securities lending and borrowing to facilitate the securities settlement process and to maximize revenue by acting as an agent for such transactions. These transactions are typically short-term in nature, with interest being received on the cash delivered. These transactions are collateralized by either cash, letters of credit or other collateral and are subject to daily margin calls for any deficiency between the market value of the security given and the amount of collateral received. CI manages its credit exposure by establishing and monitoring aggregate limits by counterparty for these transactions. CI’s securities lending and borrowing transactions are recorded in accounts receivable and prepaid expenses and accounts payable and accrued liabilities. CAPITAL ASSETS Capital assets are recorded at cost less accumulated depreciation. These assets are depreciated over their estimated useful lives as follows: Computer hardware Straight-line over three years to five years Office equipment Straight-line over five years Leasehold improvements Straight-line over the term of the lease LEASES CI assesses at inception whether a contract contains a lease that conveys the right to control the use of an identified asset for a period of time in exchange for consideration. All leases are accounted for by recognizing a right-of-use asset and a lease liability, except for leases of low-value assets and leases with a duration of 12 months or less. Right-of-use assets CI recognizes right-of-use assets at the commencement date of the lease. Right-of-use assets are measured at cost, less any accumulated depreciation and impairment losses, and adjusted for any remeasurement of lease liabilities. The cost of right-of-use assets includes the amount of lease liabilities recognized, initial direct costs incurred, and lease payments made at or before the commencement date less any incentives received. Right-of-use assets are depreciated on a straight-line basis over the shorter of their estimated useful life and the lease term. Lease liabilities At the commencement date of the lease, CI recognizes lease liabilities measured at the present value of lease payments to be made over the lease term. The lease payments include in-substance fixed payments less any lease incentives receivable, variable payments that depend on an index or a rate, and amounts expected to be paid under residual value guarantees. The lease payments also include the exercise price of a purchase option reasonably certain to be exercised by CI and payments of penalties for terminating a lease, if the lease term reflects CI exercising the option to terminate. The variable lease payments that do not depend on an index or a rate are recognized as expense in the period on which the event or condition that triggers the payment occurs. In calculating the present value of lease payments, CI uses the incremental borrowing rate at the lease commencement date if the interest rate implicit in the lease is not readily determinable. After the commencement date, the amount of lease liabilities is increased to reflect the accretion of interest and reduced for the lease payments made. In addition, the carrying amount of lease liabilities is remeasured if there is a modification, a change in the lease term, a change in the in-substance fixed lease payments or a change in the assessment to purchase the underlying asset. Short-term leases and lease of low-value assets CI applies the short-term lease recognition exemption to its short-term leases of equipment and property leases (i.e., those leases that have a lease term of 12 months or less from the commencement date and do not contain a purchase option). CI also applies the lease of low-value assets recognition exemption to leases of equipment that are considered of low value (i.e., below $5,000). Lease payments on short-term leases and leases of low-value assets are recognized as an expense on a straight-line basis over the lease term. Sub-leases CI enters into lease agreements as an intermediate lessor with respect to some of its leased properties. When CI is an intermediate lessor, the head lease and the sub-lease are accounted for as two separate contracts. The sub-lease is classified as a finance or operating lease by reference to the right-of-use asset arising from the head lease. Amounts due from lessees under finance leases are recognized as other assets at the amount of CI’s net investment in the leases. Finance lease income is recognized over the lease term using the effective interest rate. Payments received reduce the net investment in the lease. Rental income from operating leases is recognized on a straight-line basis over the term of the relevant lease. BUSINESS COMBINATIONS The acquisition method of accounting is used to account for the acquisition of businesses by CI, whereby the purchase consideration is allocated to the identifiable assets and liabilities on the basis of fair value at the date of acquisition. Provisional fair values allocated at a reporting date are finalized as soon as the relevant information is available, within a period not to exceed 12 months from the acquisition date, with retroactive restatement of the impact of adjustments to those provisional fair values effective as at the acquisition date. CI elects on a transaction-by-transaction basis whether to measure any non-controlling interest at fair value, or at the proportionate share of the recognized amount of the identifiable net assets of the acquired subsidiary, at the acquisition date. Consideration transferred includes the fair values of the assets transferred, liabilities incurred and equity interests issued by CI. Consideration also includes the fair value of any liabilities for put arrangements for minority interests or contingent consideration. Subsequent to the acquisition, the put arrangements for minority interests and contingent consideration that is based on an earnings measurement and classified as a liability are measured at fair value with any resulting gain or loss recognized in net income. Acquisition-related costs are expensed as incurred. INTANGIBLES Fund contracts Fund administration contracts and fund management contracts [collectively, “fund contracts”] are recorded net of any write-down for impairment. CI evaluates the carrying amounts of indefinite-life fund contracts at least annually for potential impairment by comparing the recoverable amount with their carrying amounts. CI will evaluate the carrying amount of fund contracts if events or changes in circumstances indicate a potential impairment. Any impairment would be written off to income. Fund administration contracts are amortized on a straight-line basis over a period of up to 25 years. Fund management contracts with a finite life are amortized on a straight-line basis over a period of up to 20 years. The amortization period depends on the contractual terms of such agreements and management’s best estimate of their useful lives. Fund management contracts with an indefinite life are not amortized. Goodwill Goodwill is recorded as the excess of purchase price over identifiable assets acquired. Following initial recognition, goodwill is stated at cost less any accumulated impairment losses. Goodwill is evaluated for impairment at least annually and any impairment is recognized immediately in income and not subsequently reversed. Goodwill is allocated to the asset management, Canadian wealth management and U.S. wealth management groups of cash-generating units [“CGUs”] for the purpose of impairment testing. Other intangibles Other intangibles include the costs of trademarks and computer software, capitalized where it is probable that future economic benefits that are attributable to the assets will flow to CI and the cost of the assets can be measured reliably. Computer software is recorded initially at cost and amortized over its expected useful life of two EQUITY-BASED COMPENSATION CI uses the fair value method to account for equity-settled employee incentive share options and restricted share units [“RSUs”]. The value of the equity-based compensation, as at the date of grant, is recognized over the applicable vesting period as compensation expense with a corresponding increase in contributed surplus. When options are exercised, the proceeds received, together with the amount in contributed surplus, are credited to share capital. Upon vesting of the RSUs, the amount accumulated in contributed surplus for the RSUs is reclassified to share capital. CI has a deferred share unit plan for directors. The value of the compensation at the date of grant is recognized immediately as compensation with a corresponding increase in accounts payable and accrued liabilities. At each consolidated statement of financial position date, the liability is revalued with an offset to compensation expense. The amount recognized as an expense is adjusted to reflect the number of awards for which the related service conditions are expected to be met, such that the amount ultimately recognized as an expense is based on the number of awards that do meet the related service condition at the vesting date. INCOME TAXES Current income tax liabilities are measured at the amount expected to be paid to tax authorities, net of recoveries based on the tax rates and tax laws enacted or substantively enacted as at the consolidated statement of financial position dates. The liability method of tax allocation is used in accounting for income taxes. Under this method, deferred income tax assets and liabilities are determined based on differences between the carrying amount and tax basis of assets and liabilities and measured using the substantively enacted tax rates and laws that will be in effect when the differences are expected to reverse. Deferred tax assets are recognized to the extent that it is probable that taxable profits will be available against which deductible temporary differences can be utilized. Deferred tax liabilities are generally recognized for all taxable temporary differences. Deferred tax liabilities are recognized for taxable temporary differences arising in investments in subsidiaries and joint ventures except where the reversal of the temporary difference can be controlled and it is probable that the difference will not reverse in the foreseeable future. Deferred tax liabilities are not recognized on temporary differences that arise from the initial recognition of goodwill, which is not deductible for tax purposes. Deferred tax assets and liabilities are not recognized in respect of temporary differences that arise on initial recognition of assets and liabilities acquired other than in a business combination. PROVISIONS A provision is recognized if, as a result of a past event, CI has a present legal or constructive obligation that can be estimated reliably, and it is probable that an outflow of economic benefits will be required to settle the obligation. In the event that the time value of money is material, provisions are determined by discounting the expected future cash flows at a pre-tax rate that reflects a current market assessment of the time value of money and the risks specific to the liability. FOREIGN CURRENCY (i) Foreign currency transactions Transactions that are denominated in a currency other than the functional currency of the entity are translated as follows: Monetary assets and liabilities are translated into Canadian dollars using the exchange rates in effect as at the consolidated statement of financial position dates. Non-monetary assets and liabilities are translated into Canadian dollars using historical exchange rates. Revenue and expenses are translated at average rates prevailing during the period. Other foreign currency transactions are translated into Canadian dollars using the exchange rate in effect on the transaction date. Translation exchange gains and losses are included in other income in the period in which they occur. (ii) Foreign currency operations The assets and liabilities of foreign operations, including goodwill and fair value adjustments arising on consolidation, are translated at the exchange rate in effect as at the consolidated statement of financial position dates. Revenue and expenses are translated at average rates prevailing during the period. Translation exchange gains and losses are recognized as other comprehensive income and reclassified to net income when the gain or loss on disposal of the foreign subsidiary is recognized. The consolidated statements of cash flows are translated at average exchange rates during the period, whereas cash and cash equivalents are translated at the spot exchange rate in effect as at the consolidated statement of financial position dates. CRITICAL ACCOUNTING ESTIMATES AND JUDGMENTS In the process of applying CI’s accounting policies, management has made significant judgments involving estimates and assumptions, which are summarized as follows: (i) Business combinations The purchase price related to business acquisitions is allocated to the underlying assets and liabilities based on their estimated fair value at the acquisition date. Management makes estimates to determine the fair value of assets and liabilities, including the valuation of separately identifiable intangibles acquired. Contingent consideration and certain put option payables, as part of the acquisitions, are based on the future performance of the acquired businesses. The estimates are based on management’s best assessment of the related inputs used in the valuation models, such as future cash flows, discount rates and volatility. Future performance results that differ from management’s estimates could result in changes to the liabilities, which are recorded as they arise in net income. (ii) Impairment of intangible assets Finite-life intangible assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. Indefinite-life intangible assets, including goodwill, are tested for impairment annually or more frequently if changes in circumstances indicate that the carrying amount may be impaired. The values associated with intangibles involve estimates and assumptions, including those with respect to future cash inflows and outflows, discount rates and asset lives. These estimates require significant judgment regarding market growth rates, fund flow assumptions, expected margins and costs that could affect CI’s future results if the current estimates of future performance and fair values change. These determinations also affect the amount of amortization expense on intangible assets with finite lives recognized in future periods. (iii) Deferred tax assets Deferred tax assets are recognized for unused tax losses to the extent that it is probable that taxable profits will be available against which the losses can be utilized. Significant management judgment is required to determine the amount of deferred tax assets that can be recognized, based upon the likely timing and level of future taxable profits together with future tax planning strategies. (iv) Provisions and other financial liabilities Due to the nature of provisions and other financial liabilities, a considerable part of their determination is based on estimates and judgments, including assumptions concerning the future. The actual outcome of these uncertain factors may be materially different from the estimates, causing differences with the estimated provisions. Further details are provided in Note 7. |
BUSINESS ACQUISITION
BUSINESS ACQUISITION | 12 Months Ended |
Dec. 31, 2021 | |
Business Combinations [Abstract] | |
BUSINESS ACQUISITION | BUSINESS ACQUISITION [A] Acquisitions - year ended December 31, 2021 Wealth Management: During the year ended December 31, 2021, CI completed the acquisition of controlling interests in the following Canadian and U.S. investment advisory firms, included in the wealth management segment: Canadian: • Stonegate Services Halifax • CIPW Advisory Inc. U.S.: • Segall Bryant & Hamill, LLC • Barrett Asset Management, LLC • Brightworth, LLC • Dowling & Yahnke, LLC • Radnor Financial Advisors • Portola Partners Group • Budros, Ruhlin & Roe, Inc. • Matrix Capital Advisors, LLC • McCutchen Group LLC • Odyssey Wealth Management, LLC • Regent Atlantic Capital, LLC • Gofen and Glossberg, LLC • R.H. Bluestein & Co. • Columbia Pacific Wealth Management The acquisitions are accounted for using the acquisition method of accounting. The estimated fair values of the assets acquired and liabilities assumed and the results of operations have been consolidated from the date of the transaction, and are included in the wealth management segment. Asset Management: Lawrence Park Asset Management On May 1, 2021, CI completed the acquisition of the remaining interest in Lawrence Park Asset Management [“LPAM”], an alternative fixed-income investment firm. LPAM is included in the asset management segment. Effective July 1, 2021, LPAM amalgamated with CI Investments. [B] Net Assets Acquired - year ended December 31, 2021 Details of the net assets acquired during the year ended December 31, 2021, at fair value, are as follows: Wealth Management Asset Management Total $ $ $ Cash and cash equivalents 37,523 145 37,668 Accounts receivable and prepaid expenses 51,868 292 52,160 Capital assets 11,044 68 11,112 Right-of-use assets 57,494 — 57,494 Deferred tax (6,585) (1,344) (7,929) Intangibles 741,668 5,041 746,709 Other assets 874 24 898 Accounts payable and accrued liabilities (104,514) (233) (104,747) Long-term debt (236,964) — (236,964) Lease liabilities (57,494) — (57,494) Fair value of identifiable net assets 494,914 3,993 498,907 Non-controlling interest 10,722 — 10,722 Acquisition date fair value of initial interest — (2,016) (2,016) Goodwill on acquisition 1,198,522 2,463 1,200,985 Total acquired cost 1,704,158 4,440 1,708,598 Cash consideration 968,817 3,440 972,257 Share consideration 62,737 1,000 63,737 Provision for other liabilities 672,604 — 672,604 1,704,158 4,440 1,708,598 The businesses acquired in 2021 contributed revenue of $165,837 and net income of $36,913 to CI for the year ended December 31, 2021. If the acquisitions had occurred on January 1, 2021, the consolidated pro-forma revenue and net income for the year ended December 31, 2021 would have been $2,999,089 and $472,694, respectively. Included in intangibles are fund contracts with a fair value of $718,531 with a finite life of 12 years, indefinite-life fund management contracts of 27,807 and other intangibles of $371. Goodwill represents the excess of the consideration transferred over the fair value of the identifiable net assets acquired. CI expects to generate cost synergies from bringing together the U.S. RIAs under a common platform. Such synergies identified include referring clients amongst U.S. RIAs and cross border between the U.S. and Canada; cost synergies through rationalization of duplicated functions; and scale efficiencies in things such as supply contract negotiation as the U.S. RIAs become part of the much larger collective of CI. Goodwill of $1,144,182 for the U.S. RIAs is deductible for income taxes. The acquisition agreements provided for deferred and contingent consideration payable. Deferred consideration payable of $542,505, including put options payable of $279,896, is due within one to four years from the date of acquisition. The put options represent the fair value of embedded options to exchange minority interests for cash or redeemable instruments in a subsidiary of CI, subject to specific terms. Contingent consideration of $130,099 is pa yable in cash within one two Non-controlling interests are measured at the proportionate interest in the identifiable net assets of the acquired subsidiary, at the acquisition date. The purchase price allocations are considered to be preliminary and are subject to adjustments during the measurement period, which will not exceed twelve months from the acquisition date, as CI completes its estimation of the fair values of assets acquired and liabilities assumed, including the valuation of intangible assets. [C] Acquisitions - subsequent to December 31, 2021 On January 11, 2022, CI reached an agreement to acquire 100% of Northwood Family Office Ltd., a Canadian multi-family office. The details of the acquisition are being finalized and it is expected to close in April 2022. On February 4, 2022, CI acquired a minority stake in Newton Crypto Ltd., a Canadian crypto asset trading platform. On February 11, 2022, CI reached an agreement to acquire 100% of Galapagos Partners, L.P., an investment advisory firm. The details of the acquisition are being finalized and it is expected to close in April 2022. On February 22, 2022, CI reached an agreement to acquire 100% of Corient Capital Partners, LLC, an ultra-high-net-worth focused wealth management firm. The details of the acquisition are being finalized and it is expected to close by June 30, 2022. On March 31, 2022, CI reached an agreement to acquire certain assets of Eaton Vance WaterOak Advisors, an investment advisory firm. The details of the acquisition are being finalized and is expected to close by December 31, 2022. [D] Acquisitions - Year ended December 31, 2020 Asset Management: CI ETF Investment Management Inc. On February 19, 2020, CI acquired 100% of the outstanding shares and debt obligations of CI ETF Investment Management Inc. [“CI ETF”], formerly WisdomTree Asset Management Canada, Inc., an investment fund manager of Canadian exchange-traded funds. The acquisition was accounted for using the acquisition method of accounting. The fair values of the assets acquired and liabilities assumed, and the results of operations have been consolidated from the date of the transaction and are included in the asset management segment. Effective July 1, 2020, CI ETF amalgamated with CI Investments. Wealth Management: Aligned Capital Distributions Inc. On October 19, 2020, CI acquired a controlling interest in Aligned Capital Distributions Inc. [“Aligned”], a Canadian full-service investment advisory firm, for cash consideration and the issuance of 855 thousand shares of CI. The fair values of the assets acquired and liabilities assumed and the results of operations have been consolidated from the date of the transaction and are included in the wealth management segment. U.S. Registered Investment Advisors During the year ended December 31, 2020, CI acquired controlling interests in the following registered investment advisory firms, together [“U.S. RIAs”]. The fair values of the assets acquired and liabilities assumed and the results of operations have been consolidated from the date of the transaction and are included in the wealth management segment. • Surevest LLC • OCM Capital Partners LLC • The Cabana Group, LLC • Balasa Dinverno Foltz LLC • Thousand Oaks Financial Corporation • Bowling Portfolio Management LLC • The Roosevelt Investment Group, Inc. • Stavis & Cohen Financial, LLC • Doyle Wealth Management, Inc. • RGT Wealth Advisors, LLC [E] Net Assets Acquired - Year ended December 31, 2020 Details of the net assets acquired during the year ended December 31, 2020, at fair value, are as follows: Wealth Management Asset Management Total $ $ $ Cash and cash equivalents 19,578 1,736 21,314 Client and trust funds on deposit 450,932 — 450,932 Accounts receivable and prepaid expenses 6,398 331 6,729 Capital assets 1,390 5 1,395 Right-of-use assets 14,724 — 14,724 Deferred tax (4,219) 6,896 2,677 Intangibles 393,744 1,753 395,497 Other assets 344 — 344 Accounts payable and accrued liabilities (18,245) (1,298) (19,543) Clients and trust funds payable (450,932) — (450,932) Income taxes payable (312) — (312) Lease liability (15,545) — (15,545) Fair value of identifiable net assets 397,857 9,423 407,280 Non-controlling interest (35,222) — (35,222) Goodwill on acquisition 528,557 763 529,320 Total acquired cost 891,192 10,186 901,378 Cash consideration 537,430 5,500 542,930 Share consideration 35,434 — 35,434 Provision for other liabilities 318,328 4,686 323,014 891,192 10,186 901,378 The businesses acquired in 2020 contributed revenue of $58,672 and net income of $3,261 to CI for the year ended December 31, 2020. If the acquisitions had occurred on January 1, 2020, the consolidated pro-forma revenue and net income for the year ended December 31, 2020 would have been $2,270,038 and $487,013, respectively. Included in intangibles are fund administration contracts with a fair value of $392,904 with a finite life of 12 years, indefinite life fund management contracts of $1,753 and other intangibles of $840. Goodwill of $528,557 has been attributed to the wealth management segment and $763 to the asset management segment. Goodwill o f $495,546 for the U.S. RIAs is deductible for income taxes. The acquisition agreements provided for deferred compensation, contingent consideration and put options payable in cash, shares of CI and redeemable instruments in a subsidiary of CI, subject to specific terms. Deferred compensation payable in cash of $81,937 and shares of $15,294, is payable within one year from the date of acquisition. Contingent consideration of $126,485 is payable in cash within one the shares owned by each shareholder at a fixed price, or at fair value if exercised after a certain date, or exchanged for equity interests of a subsidiary of CI at a specified exchange rate. Non-controlling interests were measured at the proportionate interest in the identifiable net assets of the acquired subsidiary, at the acquisition date. [F] Other Acquisitions - Years ended December 31, 2021 and 2020 On April 6, 2021, CI entered into a newly formed joint venture, Axia Real Assets LP [“Axia”], an alternative investment manager focused on global real estate and infrastructure. The investment in Axia has been accounted for using the equity method of accounting. During the year ended December 31, 2021, CI acquired minority stakes in GLASFunds, LLC [“GLASFunds”] and Columbia Pacific Advisors, LLC [“CPA”]. CI has an option to obtain majority ownership of GLASFunds over the next four years. The acquisition of CPA and GLASfunds has been accounted for using the equity method of accounting. During the year ended December 31, 2020 , CI completed the acquisition of a minority interest in Congress Wealth Management LLC [“Congress”] and in AWM’s Dorval, Quebec operation [“AWM Dorval”]. The acquisition of Congress and AWM Dorval has been accounted for using the equity method of accounting. |
CAPITAL ASSETS
CAPITAL ASSETS | 12 Months Ended |
Dec. 31, 2021 | |
Property, plant and equipment [abstract] | |
CAPITAL ASSETS | CAPITAL ASSETS Capital assets consist of the following: Computer hardware Office equipment Leasehold improvements Total $ $ $ $ Cost Balance, December 31, 2019 19,203 20,342 87,445 126,990 Acquired 468 748 179 1,395 Additions 6,687 1,172 4,131 11,990 Retired (1,739) — — (1,739) Translation (105) (46) (18) (169) Balance, December 31, 2020 24,514 22,216 91,737 138,467 Acquired 1,038 1,982 8,092 11,112 Additions 4,648 986 2,164 7,798 Retired (8,871) (220) (353) (9,444) Translation (10) (5) 67 52 Balance, December 31, 2021 21,319 24,959 101,707 147,985 Accumulated depreciation Balance, December 31, 2019 14,420 15,743 50,873 81,036 Depreciation 3,756 1,644 6,895 12,295 Retired (1,739) — — (1,739) Translation (51) (41) (11) (103) Balance, December 31, 2020 16,386 17,346 57,757 91,489 Depreciation 4,209 1,956 7,047 13,212 Retired (8,762) (143) (334) (9,239) Translation (40) 2 (35) (73) Balance, December 31, 2021 11,793 19,161 64,435 95,389 Carrying amounts At December 31, 2019 4,783 4,599 36,572 45,954 At December 31, 2020 8,128 4,870 33,980 46,978 At December 31, 2021 9,526 5,798 37,272 52,596 |
INTANGIBLES
INTANGIBLES | 12 Months Ended |
Dec. 31, 2021 | |
Intangible assets and goodwill [abstract] | |
INTANGIBLES | INTANGIBLES Goodwill Fund administration contracts Fund management contracts finite-life Fund management contracts indefinite-life Other intangibles Total $ $ $ $ $ $ Cost Balance, December 31, 2019 1,531,273 49,500 50,157 1,779,957 64,177 3,475,064 Acquired 529,320 392,904 — 1,753 1,006 924,983 Additions — — — — 17,132 17,132 Translation (6,921) (10,439) (112) (2,809) (29) (20,310) Balance, December 31, 2020 2,053,672 431,965 50,045 1,778,901 82,286 4,396,869 Acquired 1,200,985 713,490 5,041 27,807 1,890 1,949,213 Additions — — — — 12,420 12,420 Retired — — — — (555) (555) Translation 1,284 3,526 (189) (4,041) (14) 566 Balance, December 31, 2021 3,255,941 1,148,981 54,897 1,802,667 96,027 6,358,513 Accumulated amortization Balance, December 31, 2019 — 25,721 31,396 — 29,465 86,582 Acquired — — — 166 166 Amortization — 9,325 2,037 — 7,955 19,317 Translation — (210) 20 — (4) (194) Balance, December 31, 2020 — 34,836 33,453 — 37,582 105,871 Acquired — — — — 1,519 1,519 Amortization — 53,541 2,307 — 10,289 66,137 Retired — — — — (538) (538) Translation — 384 (83) — (14) 287 Balance, December 31, 2021 — 88,761 35,677 — 48,838 173,276 Carrying amounts At December 31, 2019 1,531,273 23,779 18,761 1,779,957 34,712 3,388,482 At December 31, 2020 2,053,672 397,129 16,592 1,778,901 44,704 4,290,998 At December 31, 2021 3,255,941 1,060,220 19,220 1,802,667 47,189 6,185,237 Remaining term N/A 6.9 – 12.0 yrs 5.3 – 11.9 yrs N/A 0.1 – 7.8 yrs CI has three groups of CGUs for the purpose of assessing the carrying amount of the allocated goodwill, being asset management or the asset management segment, Canadian wealth management and U.S. wealth management that together form the wealth management segment. Goodwill of $1,312,543 is allocated to the asset management group, $308,553 is allocated to the Canadian wealth management group, and $1,634,845 is allocated to the U.S. wealth management group as at December 31, 2021 [2020 – $1,311,873, $254,276 and $487,523, respectively]. CI has indefinite-life fund management contracts of $1,774,050 within the asset management group and $28,617 within the U.S. wealth management group as at December 31, 2021 [2020 – $1,778,901 and nil, respectively]. The recoverable amounts of the groups of CGUs are based on a fair value less cost to sell calculation. The fair value of the Canadian wealth management group was determined using a % of assets under administration [“AUA”] multiple method, based on a 3% multiple applied to AUA as at the valuation date. The multiple applied to AUA is determined using publicly-traded comparables in Canada and the U.S., as well as recent transaction multiples. The fair value for the asset management group and U.S. wealth management group was determined using the discounted cash flow method, based on estimated future cash flows over a 5-year period with a terminal value for the period thereafter. CI uses a 5-year period to reflect the expected growth strategies for the various contracts acquired in addition to the fact that it may take several years to fully integrate operations and benefit from market-participant synergies. The key assumptions used in the forecast calculation include assumptions on market appreciation, net sales of funds and operating margins. Market appreciation rates are determined using long-term historical inflation-adjusted index returns. Net sales are determined based on the historical 3-year average as well as management’s forecasts for future sales. Inputs to the operating margin include estimates for management and trailer fees using current average fee rates and normalized inflation rates are applied to current selling, general and administrative expenses to forecast future cash flows over the 5-year period. The terminal value has been calculated assuming a long-term growth rate of 2% per annum in perpetuity based on a long-term real GDP growth rate as at December 31, 2021 and 2020. A discount rate of 12.00% – 13.00% per annum has been applied to the recoverable amount calculation as at December 31, 2021 [2020 – 10.10% – 14.94%]. Level 3 inputs were used to determine the fair value. The calculation of the recoverable amount exceeds the carrying amount of goodwill and indefinite-life fund management contracts as at December 31, 2021 and 2020. |
OTHER ASSETS, INCOME AND EXPENS
OTHER ASSETS, INCOME AND EXPENSE | 12 Months Ended |
Dec. 31, 2021 | |
Subclassifications of assets, liabilities and equities [abstract] | |
OTHER ASSETS, INCOME AND EXPENSE | OTHER ASSETS, INCOME AND EXPENSE Other assets as at December 31, 2021 consist of the following: 2021 2020 $ $ Long-term investments 48,560 23,925 Investments accounted for using the equity method 258,408 40,266 Advisor and employee loans 36,422 36,470 Other related party loans 20,361 9,072 Other 19,436 15,009 383,187 124,742 CI’s equity-accounted investments as at December 31, 2021, include Congress, AWM Dorval and the 2021 acquired interests in Axia, CPA and GLASFunds as described in Note 2. The aggregate carrying amount of these individually immaterial associates that are accounted for using the equity method is $258,408 [2020 – $40,266] and the aggregate amount of CI’s share of net income is $2,756 [ 2020 – $197]. CI has a hiring and retention incentive program whereby loans are extended to current investment advisors. These loans are initially recorded at their fair value, may bear interest at prescribed rates and are contractually forgiven on a straight-line basis over the applicable contractual period, which varies in length from three The forgiven amount is included in other expenses. As at December 31, 2021, loans to investment advisors of $28,958 [2020 – $32,774] are included in other assets. These loans become due on demand upon early termination or breach in the terms of the agreements. CI has an employee share purchase loan program for key employees. These loans are renewable yearly and bear interest at prescribed rates. As at December 31, 2021, the carrying amount of employee share purchase loans is $757 [2020 – $757] and is included in other assets. These loans become due immediately upon termination of employment or sale of the shares that are held as collateral. As at December 31, 2021, the shares held as collateral have a market value of approximately $851 [2020 – $918]. As at December 31, 2021, CI has shareholder loans of $6,707 outstanding (December 31, 2020 - $2,938). These loans bear interest at prescribed rates and are due immediately upon termination of employment or sale of the subsidiary shares that are held as collateral. Included in other income is income from CI’s long-term and equity accounted for investments of $40,283 [2020 - $11,191] and foreign exchange gains (losses) of $(18,766) [2020 - $7,463]. Other income also includes performance fees, interest income and revenue earned by Marret. Included in other expenses is the fair value change in acquisition liabilities of $149,905 [ 2020 – nil], legal and severance of $23,478 [2020 - $56,277] and losses on debenture redemptions $24,920 [2020 - $2,328] as described in Note 6 and Note 7. Other expenses also include expenses of Marret, acquisition closing costs and advisor recruitment. |
LONG-TERM DEBT
LONG-TERM DEBT | 12 Months Ended |
Dec. 31, 2021 | |
Financial Instruments [Abstract] | |
LONG-TERM DEBT | LONG-TERM DEBT Long-term debt consists of the following: Interest rate Issued date Maturity date 2021 2020 $ $ Credit facility and loans payable Bankers’ acceptances 297,500 — Fiduciary Network, LLC December 15, 2024 146,986 — 444,486 — Debenture principal amount $200 million 2.775% November 25, 2016 November 25, 2021 — 203,805 $325 million 3.520% July 20, 2018 July 20, 2023 — 323,944 $301 million 3.215% July 22, 2019 July 22, 2024 300,257 348,454 $450 million 3.759% May 26, 2020 May 26, 2025 448,278 447,829 $250 million 3.904% September 27, 2017 September 27, 2027 249,032 248,891 $960 million USD 3.200% December 17, 2020 December 17, 2030 1,207,689 883,193 $900 million USD 4.100% June 2, 2021 June 15, 2051 1,126,296 — 3,331,552 2,456,116 Long-term debt 3,776,038 2,456,116 Current portion of long-term debt 444,486 203,805 CREDIT FACILITY CI has a $700,000 revolving credit facility with three Canadian chartered banks. Loans are made by the banks under a three-year revolving credit facility, with the outstanding principal balance due upon maturity on May 27, 2024. Amounts may be borrowed in Canadian dollars through prime rate loans, which bear interest at the greater of the bank’s prime rate plus 0.20%, or bankers’ acceptances, which bear interest at bankers’ acceptance rates plus 1.20%. Amounts may also be borrowed in U.S. dollars through base rate loans, which bear interest at the greater of the bank’s reference rate for loans made by it in Canada in U.S. funds and the federal funds effective rate plus 1.20%, or LIBOR loans, which bear interest at LIBOR plus 1.20%. CI may also borrow under this facility in the form of letters of credit, which bear a fee of 1.20% on any undrawn portion. As at December 31, 2021 and 2020, CI had not accessed the facility by way of letters of credit. CI is within its financial covenants with respect to its credit facility, which require that the funded debt to annualized EBITDA ratio remain below 3.5:1 until June 29, 2022 and below 3.0: 1 thereafter, and that CI’s assets under management not fall below $85 billion at any time. The net funded debt to annualized EBITDA ratio is increased by 0.5 if the consideration paid by CI for permitted acquisitions under the credit facility in any four quarters exceeds $200 million, with a maximum of two such increases until the maturity date. As at December 31, 2021 , as a result of acquisitions that took place during the year, the net funded debt to annualized EBITDA ratio must remain below 4.0:1 until June 29, 2022 and 3.5:1 thereafter. There can be no assurance that future borrowings or equity financing will be available to CI or available on acceptable terms. DEBENTURES AND NOTES Redemptions: On January 18, 2021, CI redeemed the $200,000 principal amount of debentures due November 25, 2021 [the “2021 Debentures”] at an average price of $101.903, and recorded a loss of $3,805, included in other expenses. On February 19, 2021, CI redeem ed the $325,000 principal amount of debentures due July 20, 2023 at an average price of $107.002 and recorded a loss of $22,755, included in other expenses. In connection with the redemption of the 2021 Debentures, on January 18, 2021, CI terminated the interest swap agreement previously entered into on February 2, 2017 and realized a gain of $1,865, included in other expenses. During the year ended December 31, 2021, CI repurchased $48,567 principal amount of debentures due July 22, 2024 at an average price of $104.458 and recorded a loss of $2,165, included in other expenses. During the year ended December 31, 2020, CI repurchased $55,985 principal amount of debentures due December 7, 2020 at an average price of $100.693 and recorded a loss of $388, included in other expenses. The remaining principal amount of $394,015 was repaid on the maturity date, December 7, 2020. Issuances: On June 7, 2021, CI completed an offering pursuant to which it issued $900,000 USD ($1,087,245 CAD) principal amount of notes due June 15, 2051 [the “2051 Notes”]. Interest on the 2051 Notes is paid semi-annually in arrears at a rate of 4.100%. The proceeds, net of transaction costs, were used to repay outstanding indebtedness unde r the cr edit facility and other strategic capital needs. On December 17, 2020, CI completed an offering pursuant to which it issued $700,000 USD ($891,175 CAD) principal amount of notes due December 17, 2030 [the “2030 Notes”]. On January 19, 2021, CI issued $260,000 USD ($331,147 CAD) additional notes of the same series. Interest on the 2030 Notes is paid semi-annually in arrears at a rate of 3.200%. The proceeds, net of transaction costs, were used to repay outstanding indebtedness under the credit facility and other strategic capital needs . On May 26, 2020, CI completed an offering pursuant to which it issued $450,000 principal amount of debentures due May 26, 2025 at par [the “2025 Debentures”]. Interest on the 2025 Debentures is paid semi-annually in arrears at a rate of 3.759%. The proceeds, net of transaction costs, were used to repay outstanding indebtedness under the credit facility and other strategic capital needs. CI may, at its option, redeem the 2024 Debentures, the 2025 Debentures and the 2027 Debentures, in whole or in part, from time to time, on not less than 30 nor more than 60 days’ prior notice to the registered holder, at a redemption price that is equal to the greater of par and the Government of Canada yield, plus 44.5, 84.0 and 44.5 basis points, respectively. CI may also, at its option, redeem the 2030 Notes and the 2051 Notes in whole or in part, from time to time, at a redemption price that is equal to the greater of 100% of the principal amount of the notes to be redeemed and the Treasury Rate plus 35.0 and 30.0 basis points, respectively. CI considers these embedded prepayment options to be closely related to the debentures and, as such, does not account for them separately as a derivative. Interest on debentures and notes : Interest paid on the debentures and notes is paid semi-annually. During the years ended December 31, 2021 and 2020, interest paid is as follows: Interest rate Issued date Maturity date 2021 2020 $ $ Interest paid on debentures and notes $450 million 2.645% December 7, 2015 December 7, 2020 — 10,305 $200 million 2.775% November 25, 2016 November 25, 2021 — 5,409 $325 million 3.520% July 20, 2018 July 20, 2023 1,486 11,440 $301 million 3.215% July 22, 2019 July 22, 2024 10,106 11,384 $450 million 3.759% May 26, 2020 May 26, 2025 16,916 10,098 $250 million 3.904% September 27, 2017 September 27, 2027 9,760 9,760 $960 million USD 3.200% December 17, 2020 December 17, 2030 38,096 1,115 $900 million USD 4.100% June 2, 2021 June 15, 2051 26,129 — 102,493 59,511 Issuance costs and the issuance discount are amortized over the term of the debentures using the effective interest method. The amortization expense related to the discount and transaction costs for CI’s issued debentures for the year ended December 31, 2021 was $2,716 [2020 – $2,054], which is included in amortization and depreciation. In the event that both a change of control occurs and the rating of the debentures is lowered to below investment grade by two out of three rating agencies as defined as below BBB- by Standard & Poor’s, BBB (low) by DBRS Limited and Baa3 by Moody’s Investor Service, Inc., CI will be required to make an offer to repurchase all or, at the option of each holder, any part of each holder’s debentures at a purchase price payable in cash equivalent to 101% of the outstanding principal amount of the debentures and notes, together with accrued and unpaid interest, to the date of purchase. Also, in the case of the 2030 Notes, in the event that certain changes affecting Canadian withholding taxes occur, CI will have the option to redeem the notes in whole or in part, at a redemption price equal to 100% of the aggregate principal amount, together with accrued and unpaid interest, to the date of redemption. LOANS PAYABLE TO FIDUCIARY NETWORK, LLC As a result of CI’s acquisition of Regent, on December 30, 2021, CI assumed a loan agreement payable to Fiduciary Network, LLC [“Fiduciary”] of $116,200 USD ($146,986 CAD), maturing on December 15, 2024. The loan bears interest at a fixed amount of $1,258 USD on a quarterly basis. As Fiduciary can elect to terminate the loan either December 15, 2022 or December 15, 2023, the loan payable has been included in the current portion of long-term debt as at December 31, 2021. As a result of CI’s acquisition of Brightworth, on April 30, 2021, CI assumed a loan agreement to Fiduciary in the amount of $66,937 USD ($82,279 CAD) and repaid $13,435 USD ($16,514 CAD). Fiduciary elected to terminate the loan and on December 11, 2021, CI repaid the remaining loan amount of $53,502 USD ($67,766 CAD) and accrued interest of $737 USD ($947 CAD). |
PROVISIONS AND OTHER FINANCIAL
PROVISIONS AND OTHER FINANCIAL LIABILITIES | 12 Months Ended |
Dec. 31, 2021 | |
Other provisions [abstract] | |
PROVISIONS AND OTHER FINANCIAL LIABILITIES | PROVISIONS AND OTHER FINANCIAL LIABILITIES CI is a party to a number of claims, proceedings and investigations, including legal, regulatory and tax, in the ordinary course of its business. Due to the inherent uncertainty involved in these matters, it is difficult to predict the final outcome or the amount and timing of any outflow related to such matters. Based on current information and consultations with advisors, CI does not expect the outcome of these matters, individually or in aggregate, to have a material adverse effect on its financial position or on its ability to continue normal business operations. CI has made provisions based on current information and the probable resolution of such claims, proceedings and investigations, as well as severance and amounts payable in connection with business acquisitions. The movement in provisions and other financial liabilities during the years ended December 31, are as follows: Provisions Acquisition liabilities Provisions Acquisition liabilities 2021 2021 2020 2020 $ $ $ $ Provisions and other financial liabilities, beginning of year 46,181 337,371 25,563 7,573 Additions 23,478 743,426 56,277 334,616 Amounts used (28,390) (324,272) (34,869) (701) Amounts reversed (10) (1,842) (790) — Fair value change - acquisition liabilities — 157,102 — — Translation - acquisition liabilities — (971) — (4,117) Provisions and other financial liabilities, end of year 41,259 910,814 46,181 337,371 Current portion of provisions and other financial liabilities 6,942 565,490 45,298 230,412 ACQUISITION-RELATED LIABILITIES Included in provisions and other financial liabilities in connection with business acquisitions are: As at As at December 31, 2021 December 31, 2020 Deferred consideration $ 136,053 $ 96,855 Fair value of contingent consideration $ 346,894 $ 131,122 Fair value of put arrangements $ 427,867 $ 109,394 Total acquisition liabilities $ 910,814 $ 337,371 Deferred consideration represents guaranteed deferred payments on acquisitions and typically settle in 90 to 270 days. Contingent consideration represents the estimated fair value of earn-out payments tied to the acquired companies exceeding certain predefined financial metrics, and is revalued on a quarterly basis. During the year ended December 31, 2021 , compensation expense of $7,198 [2020 - nil] is included in contingent consideration payable and fair value change. For three of the contingent earn-out arrangements with a liability fair value recorded as of December 31, 2021 of $69,503 [2020 - $23,108], there was no maximum payout stipulated in the respective purchase agreements. For the remaining contingent earn-out arrangements with a liability fair value recorded as of December 31, 2021 of $277,391 [2020 - $108,014], the total maximum potential payout stipulated in the respective purchase agreements was $715,105 [2020 - $219,667]. Put options represent the fair value of embedded options in the acquisition purchase agreements to exchange minority interests for cash or redeemable instruments in a subsidiary of CI, subject to specific terms, and are revalued on a quarterly basis. During the year ended December 31, 2021, GSFM shareholders exercised their put to CI at an equivalent Canadian cash value of $17,748. The majority of put options payable as at December 31, 2021 will be satisfied with the issuance of redeemable instruments in one of CI’s subsidiaries in January 2022. Included in total acquisition liabilities are foreign translation adjustments since the date of the acquisitions. Fair value adjustments to the acquisition liabilities are included in other expenses. During the year ended December 31, 2021, CI paid cash of $308,907 and shares of $15,179 related to the acquisitions. LITIGATION AND RESTRUCTURING CI is a defendant to certain lawsuits of which two are class action lawsuits related to events and transactions that gave rise to a settlement agreement with the Ontario Securities Commission [“OSC”] in 2004. Although CI continues to believe that this settlement fully compensated investors affected by frequent trading activity, a provision has been made based on the probable resolution of these claims and related expenses. CI maintains insurance policies that may provide coverage against certain claims. Amounts receivable under these policies are not accrued for unless the realization of income is virtually certain. During the years ended December 31, 2021 and 2020, no insurance proceeds were received related to the settlement of legal claims. During the year ended December 31, 2021, CI recorded provisions of $23,478 for legal and severance [2020 - $56,277]. As at December 31, 2021, a provision of $41,259 remains [2020 - $46,181]. |
LEASES
LEASES | 12 Months Ended |
Dec. 31, 2021 | |
Leases [Abstract] | |
LEASES | LEASES The following shows the carrying amounts of CI’s right-of-use assets and lease liabilities, and the movements during the year ended December 31, 2021: Right-of-use assets Property leases Equipment leases Total Lease liabilities $ $ $ $ As at January 1, 2021 50,016 604 50,620 76,233 Additions, acquired & modifications (*) 105,056 1,038 106,094 114,125 Depreciation expense (14,213) (543) (14,756) — Interest expense — — — 3,463 Payments — — — (20,130) Translation 647 1 648 65 As at December 31, 2021 141,506 1,100 142,606 173,756 ( *) Right-of-use asset includes reclass of subleased properties $8,229 During the year ended December 31, 2021, CI recognized rent expenses from short-term leases of $462, leases of low-value assets of $324 and variable lease payments of $12,153 [2020 – expenses of $355, $29 and $12,724, respectively]. |
SHARE CAPITAL
SHARE CAPITAL | 12 Months Ended |
Dec. 31, 2021 | |
Share Capital [Abstract] | |
SHARE CAPITAL | SHARE CAPITAL A summary of the changes to CI’s share capital for the years ended December 31 is as follows: [A] AUTHORIZED AND ISSUED Number of shares Stated value [in thousands] $ Authorized An unlimited number of common shares of CI Issued Common shares, balance, December 31, 2019 221,792 1,944,311 Issuance for acquisition of subsidiaries, net of issuance costs 2,034 35,434 Issuance of share capital for equity-based plans, net of tax 522 8,488 Share repurchases, net of tax (13,990) (120,236) Common shares, balance, December 31, 2020 210,358 1,867,997 Issuance for acquisition of subsidiary, net of issuance costs 3,712 78,916 Issuance of share capital for equity-based plans, net of tax 799 10,825 Share repurchases, net of tax (17,447) (147,585) Common shares, balance, December 31, 2021 197,422 1,810,153 During the year ended December 31, 2021, 15,692 thousand shares [2020 – 13,615 thousand shares] were repurchased under a normal course issuer bid at an average cost of $21.17 per share for total consideration of $332,248 [2020 – $18.32 per share for total consideration of $249,427]. Deficit was increased by $191,760 during the year ended December 31, 2021 [2020 – $130,216] for the cost of the shares repurchased in excess of their stated value. During the year ended December 31, 2021, 1,755 thousand shares [2020 – 375 thousand shares] were repurchased for CI’s restricted share unit plan at an average cost of $18.27 per share for total consideration of $32,071 [$23,573 after tax] [2020 – $22.70 per share for total consideration of $8,512 [$6,256 net of tax]]. Deficit was increased by $16,474 during the year ended December 31, 2021 [2020 – $5,231] for the cost of the shares repurchased in excess of their stated value. [B] EMPLOYEE INCENTIVE SHARE OPTION PLAN CI has an employee incentive share option plan [the “Share Option Plan”], as amended and restated, for the executives and key employees of CI. The maximum number of shares that may be issued under the Share Option Plan is 14,000 thousand shares. As at December 31, 2021, there are 811 thousand shares [2020 – 2,606 shares] reserved for issuance on exercise of share options. These options vest over periods of up to five years, may be exercised at prices ranging from $18.99 to $28.67 per share and expire at dates up to 2029. A summary of the changes in the Share Option Plan is as follows: Number of options Weighted average exercise price [in thousands] $ Options outstanding, December 31, 2019 5,584 29.63 Options exercisable, December 31, 2019 4,758 31.26 Options cancelled (2,978) 34.28 Options outstanding, December 31, 2020 2,606 26.38 Options exercisable, December 31, 2020 2,020 28.44 Options exercised (*) (3) 27.44 Options cancelled (1,792) 28.41 Options outstanding, December 31, 2021 811 21.88 Options exercisable, December 31, 2021 274 27.53 (*) Weighted-average share price of options exercised was $30.13 during the year ended December 31, 2021 [2020 - nil] The equity-based compensation expense under the Share Option Plan for the year ended December 31, 2021 of $290 [2020 – $210] has been included in selling, general and administrative expenses. Options outstanding and exercisable as at December 31, 2021 are as follows: Exercise price Number of options outstanding Weighted average remaining contractual life Number of options exercisable $ [in thousands] [years] [in thousands] 18.99 537 7.2 — 27.44 254 0.2 254 28.67 20 1.2 20 18.99 to 28.67 811 4.9 274 [C] RESTRICTED SHARE UNITS CI has an employee restricted share unit plan [the “RSU Plan”] for senior executives and other key employees. Compensation expense is recognized and recorded as contributed surplus based upon the market value of the restricted share units [“RSUs”] at the grant date. Forfeitures of RSUs reduce compensation expense to the extent contributed surplus was previously recorded for such awards. On vesting of RSUs, share capital is credited for the amounts initially recorded as contributed surplus to reflect the issuance of share capital. A summary of the changes in the RSU Plan is as follows: Number of RSUs [in thousands] 2021 2020 RSUs outstanding, beginning of year 504 657 Granted, excluding dividends 1,783 350 Granted, dividends 58 36 Exercised (849) (521) Forfeited (59) (18) RSUs outstanding, end of year 1,437 504 An expense of $21,715 was recorded during the year ended December 31, 2021 [2020 - $10,447]. CI uses a trust to hold CI’s common shares, to fulfill obligations to employees arising from the RSU Plan. The common shares held by the trust are not considered to be outstanding for the purposes of basic and diluted earnings per share calculations. [D] DEFERRED SHARE UNITS The deferred share unit plan [the “DSU Plan”] was established in March 2017, whereby directors may elect to receive all or a portion of their quarterly compensation in either cash or deferred share units [“DSUs”]. The DSUs fully vest on the grant date and an expense is recorded based upon the market value of the DSUs at the grant date with an offset included in accounts payable and accrued liabilities. At the end of each period, the change in the fair value of the DSUs is recorded as an expense with an offset recorded to the liability. DSUs can only be redeemed for cash once the holder ceases to be a director of CI. During the year ended December 31, 2021, 14 thousand DSUs were granted, and nil DSUs were exercised [2020 - 11 thousand DSUs, and nil exercised]. An expense of $730 was recorded during the year ended December 31, 2021 [2020 - $51]. As at December 31, 2021, included in accounts payable and accrued liabilities is an accrual of $1,245 for amounts to be paid under the DSU Plan [2020 - $515]. [E] BASIC AND DILUTED EARNINGS PER SHARE The following table presents the calculation of basic and diluted earnings per common share for the years ended December 31: [in thousands] 2021 2020 Numerator: Net income attributable to shareholders of the Company - basic and diluted $409,328 $475,978 Denominator: Weighted average number of common shares - basic 201,628 214,092 Weighted average effect of dilutive stock options and RSU awards (*) 838 1,527 Weighted average number of common shares - diluted 202,466 215,619 Net earnings per common share attributable to shareholders Basic $2.03 $2.22 Diluted $2.02 $2.21 (*) The determination of the weighted average number of common shares - diluted excludes 274 thousand shares related to stock options that were anti-dilutive for the year ended December 31, 2021 [ 2020 - 2,606 thousand shares]. [F] MAXIMUM SHARE DILUTION The following table presents the maximum number of shares that would be outstanding if all the outstanding options were exercised and if all RSU awards vested as at January 31, 2022: [in thousands] Shares outstanding at January 31, 2022 197,422 RSU awards 1,434 Options to purchase shares 807 199,663 |
DIVIDNEDS
DIVIDNEDS | 12 Months Ended |
Dec. 31, 2021 | |
Dividends [Abstract] | |
DIVIDENDS | DIVIDENDS The following dividends were paid by CI during the year ended December 31, 2021: Record date Payment date Cash dividend per share Total dividend amount $ $ December 31, 2020 January 15, 2021 0.18 37,869 March 31, 2021 April 15, 2021 0.18 36,728 June 30, 2021 July 15, 2021 0.18 36,239 September 30, 2021 October 15, 2021 0.18 35,611 Paid during the year ended December 31, 2021 146,447 The following dividends were declared but not paid as at December 31, 2021: Record date Payment date Cash dividend per share Total dividend amount $ $ December 31, 2021 January 14, 2022 0.18 35,536 March 31, 2022 April 15, 2022 0.18 35,536 Declared and accrued as at December 31, 2021 71,072 The following dividends were paid by CI during the year ended December 31, 2020: Record date Payment date Cash dividend per share Total dividend amount $ $ December 31, 2019 January 15, 2020 0.18 39,971 March 31, 2020 April 15, 2020 0.18 38,995 June 30, 2020 July 15, 2020 0.18 38,574 September 30, 2020 October 15, 2020 0.18 37,773 Paid during the year ended December 31, 2020 155,313 The following dividends were declared but not paid as at December 31, 2020: Record date Payment date Cash dividend per share Total dividend amount $ $ December 31, 2020 January 15, 2021 0.18 37,649 March 31, 2021 April 15, 2021 0.18 37,648 75,297 |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 31, 2021 | |
Income Tax [Abstract] | |
INCOME TAXES | INCOME TAXES The following are the major components of income tax expense for the years ended December 31: 2021 2020 $ $ Consolidated Statements of Income Current income tax expense Based on taxable income of the current year 217,896 171,637 Adjustments in respect of prior years (1,685) (2,714) 216,211 168,923 Deferred income tax expense Origination and reversal of temporary differences (net) (42,419) (1,722) (42,419) (1,722) Income tax expense reported in the consolidated statements of income 173,792 167,201 The following is a reconciliation between CI’s statutory and effective income tax rates for the years ended December 31: 2021 2020 % % Combined Canadian federal and provincial income tax rate 26.5 26.5 Increase (decrease) in income taxes resulting from Recovery of prior years’ provisions for settled tax items 0.1 (0.5) Other, net 3.0 — Income tax expense reported in the consolidated statements of income and comprehensive income 29.6 26.0 Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Significant components of CI’s deferred income tax assets and liabilities are as follows at December 31, 2021: December 31, 2020 Recognized in net income Business acquisition [note 2] Recognized in equity and FX December 31, 2021 $ $ $ $ $ Net deferred income tax (assets) liabilities Fund contracts 487,348 (26,901) 8,095 (1,517) 467,025 Right-of-use assets 12,904 24,623 — — 37,527 Equity-based compensation (14,400) 531 — (2,784) (16,653) Non-capital loss carryforwards (7,341) (1,835) — — (9,176) Provisions and other financial liabilities (7,611) (4,859) — — (12,470) Lease liabilities (19,409) (26,523) — — (45,932) Other 11,398 (7,455) (166) (222) 3,555 Net deferred income tax (assets) liabilities 462,889 (42,419) 7,929 (4,523) 423,876 Significant components of CI’s deferred income tax assets and liabilities are as follows at December 31, 2020: December 31, 2019 Recognized in net income Business acquisition Recognized in equity and FX December 31, 2020 $ $ $ $ $ Net deferred income tax (assets) liabilities Fund contracts 482,696 (1,197) 4,188 1,661 487,348 Right-of-use assets 11,866 1,038 — — 12,904 Equity-based compensation (12,950) (1,982) — 532 (14,400) Non-capital loss carryforwards (5,116) 4,681 (6,906) — (7,341) Provision for other liabilities (2,690) (4,921) — — (7,611) Lease liabilities (19,163) (246) — — (19,409) Other 10,198 905 41 254 11,398 Net deferred income tax (assets) liabilities 464,841 (1,722) (2,677) 2,447 462,889 |
FINANCIAL INSTRUMENTS
FINANCIAL INSTRUMENTS | 12 Months Ended |
Dec. 31, 2021 | |
Fair Value Measurement [Abstract] | |
FINANCIAL INSTRUMENTS | FINANCIAL INSTRUMENTS The carrying amounts of the financial instruments are presented in the table below and are classified according to the following categories: December 31, 2021 December 31, 2020 $ $ Financial assets Fair value through profit or loss Cash and cash equivalents 230,779 483,598 Investments 131,772 133,375 Other assets 48,560 12,210 Amortized cost Client and trust funds on deposit 1,199,904 973,143 Accounts receivable 242,154 219,074 Other assets 59,172 44,314 Total financial assets 1,898,373 1,865,714 Financial liabilities Fair value through profit or loss Provisions and other financial liabilities 774,761 240,516 Amortized cost Accounts payable and accrued liabilities 351,495 308,797 Provisions and other financial liabilities 177,312 143,036 Dividends payable 71,072 75,297 Client and trust funds payable 1,202,079 961,080 Long-term debt 3,776,038 2,456,116 Total financial liabilities 6,352,757 4,184,842 CI’s investments as at December 31, 2021 and 2020 include CI’s marketable securities, which comprise of seed capital investments in CI’s mutual funds and strategic investments. Mutual fund securities are valued using the net asset value per unit of each fund, which represents the underlying net assets at fair values determined using closing market prices. CI’s mutual fund securities that are valued daily are classified as Level 1 in the fair value hierarchy. Mutual fund securities and strategic investments that are valued less frequently are classified as Level 2 in the fair value hierarchy. CI’s investments as at December 31, 2021, also include securities owned, at market, consisting of money market and equity securities. Money market and equity securities are valued based on quoted prices and are classified as Level 1 in the fair value hierarchy. During the year ended December 31, 2021, a Level 3 investment of $202 was transferred to Level 1 [2020 - no transfers between Level 1, Level 2 and Level 3]. Investments consist of the following as at December 31, 2021: Total Level 1 Level 2 Level 3 $ $ $ $ Marketable securities 116,879 33,278 79,946 3,655 Securities owned, at market 14,893 14,893 — — Total investments 131,772 48,171 79,946 3,655 Inv estments consist of the following as at December 31, 2020: Total Level 1 Level 2 Level 3 $ $ $ $ Marketable securities 118,126 37,193 77,278 3,655 Securities owned, at market 15,249 15,249 — — Total investments 133,375 52,442 77,278 3,655 Included in other assets are long-term private equity strategic investments of $202 [2020 - nil] valued using Level 1 inputs and $ 48,358 [2020 - $12,210] valued using Level 3 inputs. Included in provisions and other financial liabilities as at December 31, 2021 is put options payable on non-controlling interests of $427,867 [2020 - $109,394 ] and contingent consideration payable of $346,894 [2020 - $131,122]. The fair value of the put option payable and contingent consideration payable was determined using a combination of the discounted cash flow or earnings multiple methods, and Monte-Carlo simulations, which are based on significant inputs that are considered Level 3 inputs. This approach also included assumptions regarding the timing in which the minority shareholders will require CI to purchase these non-controlling interests. In determining fair value of contingent consideration payable, the acquired business’s future performance is estimated using financial projections for the acquired business. These financial projections, as well as alternative scenarios of financial performance, are measured against the performance targets specified in each respective acquisition agreement. In addition, discount rates are established based on the cost of debt and the cost of equity. The fair value of certain put option arrangements includes a projection of future performance, discounted based on the cost of equity and a risk premium. Otherwise, the fair value of put option arrangements is based on the exchange value of the subsidiary redeemable instruments, calculated using an earnings multiple approach. Significant unobservable inputs include forecasted average annualized earnings growth rate of 13%, discount rates in the range of 4% to 21% and volatility of up to 25% [2020 - forecasted average annualized earnings growth rate of 15%, discount rates 3% to 16% and volatility up to 52%]. The estimated fair value of certain put options payable and contingent consideration payable would increase (decrease) if the forecasted growth rate was higher (lower), if the discount rate was lower (higher) or if volatility was higher (lower). Long-term debt as at December 31, 2021 includes debentures with a fair value of $3,520,159 [2020 - $2,575,740], as determined by quoted market prices, which have been classified as Level 2 in the fair value hierarchy. |
RISK MANAGEMENT
RISK MANAGEMENT | 12 Months Ended |
Dec. 31, 2021 | |
Risk Management [Abstract] | |
RISK MANAGEMENT | RISK MANAGEMENT Risk management is an integrated process with independent oversight. Management has developed an enterprise-wide approach to risk management that involves executives in each core business unit and operating area of CI. Using a quantitative and qualitative analysis, risk factors are assessed and procedures are implemented to mitigate the various events that could impact CI’s financial position and results of operations. CI’s financial instruments bear the following financial risks: [A] MARKET RISK Market risk is the risk of a financial loss resulting from adverse changes in underlying market factors, such as interest rates, foreign exchange rates, and equity prices. CI’s Corporate Finance Group reviews the exposure to interest rate risk, foreign exchange risk and price risk by identifying, monitoring and reporting potential market risks to the Chief Financial Officer. A description of each component of market risk is described below: • Interest rate risk is the risk of loss due to the volatility of interest rates. • Foreign exchange risk is the risk of loss due to volatility of foreign exchange rates. • Price risk is the risk of loss due to changes in prices and volatility of financial instruments. CI’s financial performance is indirectly exposed to market risk. Any decline in financial markets or lack of sustained growth in such markets may result in a corresponding decline in the performance and may adversely affect CI’s assets under management and financial results. (i) Interest rate risk Interest rate risk arises from the possibility that changes in interest rates will affect the value of financial instruments. Fluctuations in interest rates have a direct impact on the interest payments CI makes on its long-term debt. Debt outstanding on CI’s credit facility of $297,500 [2020 – nil] is borrowed at a floating interest rate. As at December 31, 2020, CI had an interest rate swap agreement with a Canadian chartered bank to swap the semi-annual fixed rate payments on the 2021 Debentures $200,000 principal amount for floating rate payments. As at December 31, 2021, the swap agreement is terminated. Based on the amount borrowed under the credit facility and the 2021 Debentures as at December 31, 2021, each 0.50% increase or decrease in interest rates would result in annual interest expense increasing or decreasing by $1,488 [2020 – $1,000], respectively. (ii) Foreign exchange risk CI is exposed to foreign exchange risk primarily from its investment in foreign subsidiaries operating in the United States, Australia and Hong Kong and from long-term debt denominated in U.S. dollars. The following table provides the impact on net income and other comprehensive income [“OCI”] of a 10% change in the value of foreign currencies with respect to CI’s net financial assets as at December 31, 2021: 10% strengthening of foreign exchange rate on net income 10% strengthening of foreign exchange rate on OCI 10% weakening of foreign exchange rate on net income 10% weakening of foreign exchange rate on OCI United States dollar (301,683) 4,917 301,683 (4,917) Australian dollar (191) 1,469 191 (1,469) Hong Kong dollar 138 — (138) — The following table provides the impact on net income and OCI of a 10% change in the value of foreign currencies with respect to CI’s net financial assets as at December 31, 2020: 10% strengthening of foreign exchange rate on net income 10% strengthening of foreign exchange rate on OCI 10% weakening of foreign exchange rate on net income 10% weakening of foreign exchange rate on OCI United States dollar (75,123) 1,511 75,123 (1,511) Australian dollar 389 761 (389) (761) Hong Kong dollar 127 — (127) — [iii] Price risk CI incurs price risk through its investments of $131,772 [2020 – $133,375]. Based on the carrying amount of these assets, an increase or decrease in prices by 10% would result in estimated gains or losses of $13,177 [2020 - $13,337], respectively. [B] LIQUIDITY RISK Liquidity risk arises from the possibility that CI will encounter difficulties in meeting its financial obligations as they fall due. CI manages its liquidity risk through a combination of cash received from operations as well as borrowings under its revolving credit facility. Liquidity is monitored through a daily cash management process that includes the projection of cash flows to ensure CI meets its funding obligations. CI’s liabilities have contractual maturities, excluding interest payments, as follows: Total 2022 2023 2024 2025 2027 2030 2051 $ $ $ $ $ $ $ $ Accounts payable and accrued liabilities 351,495 351,495 — — — — — — Dividends payable 71,072 71,072 — — — — — — Client and trust funds payable 1,202,079 1,202,079 — — — — — — Long-term debt 3,798,711 444,486 — 301,433 450,000 250,000 1,214,344 1,138,448 Deferred consideration 136,053 123,277 12,776 — — — — — Contingent consideration 346,894 41,773 225,747 63,368 16,006 — — — Put option 427,867 400,440 — 5,647 18,782 2,998 — — Total 6,334,171 2,634,622 238,523 370,448 484,788 252,998 1,214,344 1,138,448 [C] CREDIT RISK Credit risk is the risk of loss associated with the inability of a third party to fulfill its payment obligations. CI is exposed to the risk that third parties that owe it money, securities or other assets will not perform their obligations. Expected credit losses associated with CI’s financial assets are insignificant. As at December 31, 2021, financial assets of $1,549,790 [2020 – $1,248,740], represented by client and trust funds on deposit of $1,199,904 [2020 – $973,143], accounts receivable of $242,154 [2020 – $219,074] and other assets of $107,732 [2020 – $56,523], were exposed to credit risk. CI does not have a significant exposure to any individual counterparty. Credit risk is mitigated by regularly monitoring the credit performance of each individual counterparty and holding collateral, where appropriate. Client and trust funds on deposit consist mainly of cash deposits or unsettled trade receivables. CI may also extend amounts to clients on a margin basis for security purchases. Margin loans are due on demand and are collateralized by the financial instruments in the client’s account. CI faces a risk of financial loss in the event a client fails to meet a margin call if market prices for securities held as collateral decline and if CI is unable to recover sufficient value from the collateral held. The credit extended is limited by regulatory requirements and by CI’s internal credit policy. Credit risk is managed by dealing with counterparties CI believes to be creditworthy and by actively monitoring credit and margin exposure and the financial health of the counterparties. CI’s accounts receivable consist primarily of management fees receivable, amounts due to CI from the government agencies with respect to input tax credits and other short-term receivables due within 90 days. Securities lending and borrowing agreements consist of the following as at December 31, 2021: Cash Securities $ $ Loaned or delivered as collateral 6,942 6,631 Borrowed or received as collateral 16,882 16,530 Securities lending and borrowing agreements consist of the following as at December 31, 2020: Cash Securities $ $ Loaned or delivered as collateral 12,321 11,523 Borrowed or received as collateral 31,862 30,520 CI uses securities lending and borrowing to facilitate the securities settlement process. These transactions are typically short-term in nature, fully collateralized by either cash or securities and subject to daily margin calls for any deficiency between the market value of the security given and the amount of collateral received. CI manages its credit exposure by establishing and monitoring aggregate limits by counterparty for these transactions. Cash loaned or delivered as collateral is included in accounts receivable and cash borrowed or received as collateral is included in accounts payable and accrued liabilities. |
CAPITAL MANAGEMENT
CAPITAL MANAGEMENT | 12 Months Ended |
Dec. 31, 2021 | |
Capital Management [Abstract] | |
CAPITAL MANAGEMENT | CAPITAL MANAGEMENT CI’s objectives in managing capital are to maintain a capital structure that allows CI to meet its growth strategies and build long-term shareholder value, while satisfying its financial obligations. CI’s capital comprises shareholders’ equity and long-term debt (including the current portion of long-term debt). CI and its subsidiaries are subject to minimum regulatory capital requirements whereby sufficient cash and other liquid assets must be on hand to maintain capital requirements rather than using them in connection with its business. As at December 31, 2021, cash and cash equivalents of $21,695 [2020 – $14,680] were required to be on hand for regulatory capital maintenance. Failure to maintain required regulatory capital by CI may result in fines, suspension or revocation of registration by the relevant securities regulator. CI from time to time provides loans to its subsidiaries for operating purposes and may choose to subordinate these loans in favour of general creditors. The repayment of subordinated loans is subject to regulatory approval. As at December 31, 2021 and December 31, 2020, CI met its capital requirements. CI’s capital consists of the following: As at As at December 31, 2021 December 31, 2020 $ $ Shareholders’ equity 1,588,517 1,582,447 Long-term debt 3,776,038 2,456,116 Total capital 5,364,555 4,038,563 |
COMMITMENTS
COMMITMENTS | 12 Months Ended |
Dec. 31, 2021 | |
Other Provisions, Contingent Liabilities And Contingent Assets [Abstract] | |
COMMITMENTS | COMMITMENTS LEASE COMMITMENTS CI has entered into leases relating to the rental of office premises and computer equipment. CI has the option to renew certain leases. The approximate future minimum annual rental payments under such leases are as follows: $ 2022 27,817 2023 26,012 2024 25,114 2025 23,304 2026 21,745 2027+ 121,300 ADVISOR SERVICES AGREEMENTS CI is a party to certain advisor services agreements, which provide that the advisor has the option to require CI to purchase a practice that cannot otherwise be transitioned to a qualified buyer. The purchase price would be in accordance with a pre-determined formula contained in the advisor services agreements. LOAN GUARANTEES CI has agreed to guarantee up to $50,000 of loans granted by the Bank of Nova Scotia to advisors for the purpose of purchasing advisor practices. INDEMNITIES CI has agreed to indemnify its directors and officers, and certain of its employees in accordance with its by-laws. CI maintains insurance policies that may provide coverage against certain claims. |
SEGMENTED INFORMATION
SEGMENTED INFORMATION | 12 Months Ended |
Dec. 31, 2021 | |
Disclosure of operating segments [abstract] | |
SEGMENTED INFORMATION | SEGMENTED INFORMATION CI has two reportable segments: asset management and wealth management. These segments reflect CI’s internal financial reporting, performance measurement and strategic priorities. Prior year has been recast for comparative purposes. The asset management segment includes the operating results and financial position of CI Investments, GSFM and Marret, which derive their revenues principally from the fees earned on the management of several families of mutual funds, segregated funds and exchange-traded funds. The wealth management segment includes the operating results and financial position of CI Private Counsel LP, the U.S. RIAs, Aligned, CI Investment Services, Wealthbar and AWM and its subsidiaries, including Assante Capital Management Ltd. and Assante Financial Management Ltd. These companies derive their revenues principally from commissions and fees earned on the sale of mutual funds and other financial products, and ongoing service to clients. Segmented information as at and for the year ended December 31, 2021 is as follows: Asset management Wealth management Intersegment eliminations Total $ $ $ $ Management fees 1,809,967 — (17,864) 1,792,103 Administration fees — 1,052,828 (190,193) 862,635 Other income 26,949 45,330 — 72,279 Total revenue 1,836,916 1,098,158 (208,057) 2,727,017 Selling, general and administrative 376,670 344,009 (18,403) 702,276 Trailer fees 586,237 — (34,537) 551,700 Advisor and dealer fees — 579,243 (154,738) 424,505 Deferred sales commissions 6,093 — (379) 5,714 Amortization and depreciation 25,383 71,438 — 96,821 Other expenses 90,624 159,541 — 250,165 Total expenses 1,085,007 1,154,231 (208,057) 2,031,181 Income before income taxes and non-segmented items 751,909 (56,073) — 695,836 Interest and lease finance (109,670) Provision for income taxes (173,792) Net income for the year 412,374 Indefinite-life intangibles Goodwill 1,312,543 1,943,398 — 3,255,941 Fund contracts 1,774,050 28,617 — 1,802,667 Total indefinite-life intangibles 3,086,593 1,972,015 — 5,058,608 Segmented information as at and for the year ended December 31, 2020 is as follows: Asset management Wealth management Intersegment eliminations Total $ $ $ $ Management fees 1,650,076 — (14,303) 1,635,773 Administration fees — 530,058 (165,650) 364,408 Other income (2,227) 54,830 — 52,603 Total revenue 1,647,849 584,888 (179,953) 2,052,784 Selling, general and administrative 325,245 138,805 (14,611) 449,439 Trailer fees 538,409 — (28,965) 509,444 Advisor and dealer fees — 389,264 (135,888) 253,376 Deferred sales commissions 7,981 — (489) 7,492 Amortization and depreciation 24,714 18,800 — 43,514 Other expenses 69,176 12,156 — 81,332 Total expenses 965,525 559,025 (179,953) 1,344,597 Income before income taxes and non-segmented items 682,324 25,863 — 708,187 Interest (65,440) Provision for income taxes (167,201) Net income for the year 475,546 Indefinite-life intangibles Goodwill 1,311,873 741,799 — 2,053,672 Fund contracts 1,778,901 — — 1,778,901 Total indefinite-life intangibles 3,090,774 741,799 — 3,832,573 Geographic segment information: 2021 2020 Revenue from external customers $ $ Canada 2,330,892 1,971,291 United States 338,722 47,195 Australia 57,403 34,298 Total 2,727,017 2,052,784 2021 2020 Non-current assets $ $ Canada 3,669,613 3,492,876 United States 3,039,774 912,731 Australia 111,069 115,495 Hong Kong 71 82 Total 6,820,527 4,521,184 |
COMPENSATION OF KEY MANAGEMENT
COMPENSATION OF KEY MANAGEMENT | 12 Months Ended |
Dec. 31, 2021 | |
Analysis of income and expense [abstract] | |
COMPENSATION OF KEY MANAGEMENT | COMPENSATION OF KEY MANAGEMENT The remuneration of directors and other key management personnel of CI during the years ended December 31 is as follows: 2021 2020 $ $ Cash compensation 11,707 5,155 Equity-based compensation 9,072 6,660 Total 20,779 11,815 |
AMORTIZATION AND DEPRECIATION
AMORTIZATION AND DEPRECIATION | 12 Months Ended |
Dec. 31, 2021 | |
Analysis of income and expense [abstract] | |
AMORTIZATION AND DEPRECIATION | AMORTIZATION AND DEPRECIATION The following table provides details of amortization and depreciation: 2021 2020 $ $ Depreciation of capital assets 13,212 12,295 Depreciation of right-of-use assets 14,756 9,848 Amortization of intangibles 66,137 19,317 Amortization of debenture transaction costs 2,716 2,054 Total amortization and depreciation 96,821 43,514 |
UPDATE ON COVID-19
UPDATE ON COVID-19 | 12 Months Ended |
Dec. 31, 2021 | |
Unusual Items [Abstract] | |
UPDATE ON COVID-19 | UPDATE ON COVID-19CI is continuing to monitor the impact of the COVID-19 pandemic and is managing expenses accordingly. CI believes it is well positioned to meet its financial obligations and to support planned business operations throughout this pandemic. The extent to which CI’s business, financial condition and results of operations will be impacted by the COVID-19 pandemic is uncertain and will depend on future developments, which are unpredictable and rapidly evolving. Accordingly, there is a higher level of uncertainty with respect to management’s judgments and estimates. |
SUBSEQUENT EVENT
SUBSEQUENT EVENT | 12 Months Ended |
Dec. 31, 2021 | |
Events After Reporting Period [Abstract] | |
SUBSEQUENT EVENT | SUBSEQUENT EVENTOn January 1, 2022, the Company established a new entity in the U.S. to consolidate its U.S. wealth management acquisitions, CI Private Wealth U.S., LLC. This new entity will operate as a partnership where CI will be the majority owner with the minority owners being the senior leaders and financial advisors from its wealth management acquisitions. The Company acquired the remaining stakes in the wealth management businesses it did not fully own on January 1, 2022 in exchange for a redeemable interest in the new entity. Approximately $374,438 of acquisition related liabilities were settled through the exchange for redeemable interests in CI Private Wealth. |
COMPARATIVE FIGURES
COMPARATIVE FIGURES | 12 Months Ended |
Dec. 31, 2021 | |
Comparative Figures [Abstract] | |
COMPARATIVE FIGURES | COMPARATIVE FIGURESCertain comparative figures have been reclassified to conform to the consolidated financial statement presentation in the current year. |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
BASIS OF PRESENTATION | BASIS OF PRESENTATIONThe consolidated financial statements of CI have been prepared on a historical cost basis, except for certain financial instruments that have been measured at fair value. The consolidated financial statements have been prepared on a going concern basis. CI’s presentation currency is the Canadian dollar, which is CI’s functional currency. |
BASIS OF CONSOLIDATION | BASIS OF CONSOLIDATION The consolidated financial statements include the accounts of CI and all its subsidiaries on a consolidated basis after elimination of intercompany transactions and balances. Subsidiaries are entities over which CI has control, when CI has the power, directly or indirectly, to govern the financial and operating policies of an entity, is exposed to variable returns from its activities, and is able to use its power to affect such variable returns to which it is exposed. CI’s principal subsidiaries are as follows: • CI’s wholly owned Canadian subsidiaries include CI Investments Inc. [“CI Investments”], Assante Wealth Management (Canada) Ltd. [“AWM”], CI Investment Services Inc. [“CI Investment Services”], Wealthbar Financial Services Inc. [“Wealthbar”], CI Private Counsel LP, and their respective subsidiaries. CI has a controlling interest in Marret Asset Management Inc. [“Marret”] and Aligned Capital Distributions Inc. [“Aligned”], and their respective subsidiaries. • CI’s wholly owned U.S. subsidiaries include Balasa Dinverno Foltz LLC, Bowling Portfolio Management LLC, Dowling & Yahnke, LLC, Doyle Wealth Management, Segall Bryant and Hamil, LLC, Surevest LLC, and The Roosevelt Investment Group, Inc. CI has a controlling interest in Barrett Asset Management, LLC, Brightworth, LLC [“Brightworth”], Budros, Ruhlin & Roe, Inc., Columbia Pacific Wealth Management, Gofen and Glossberg, LLC, Matrix Capital Advisors, LLC, McCutchen Group LLC, OCM Capital Partners LLC [“OCM”], Portola Partners Group, Radnor Financial Advisors [“Radnor”], Regent Atlantic Capital, LLC [“Regent”], RGT Wealth Advisors, LLC, Stavis & Cohen Financial, LLC, R.H. Bluestein & Co, The Cabana Group, LLC [“Cabana”] , and their respect ive subsidiaries [together, the “U.S. RIAs”] . • CI has a controlling interest in its Australian subsidiary, GSFM Pty Limited [“GSFM”] and its subsidiaries. • For subsidiaries Marret, OCM and Cabana, where CI holds a controlling interest, a non-controlling interest is recorded in the consolidated financial statements of income and comprehensive income to reflect the non-controlling interest’s share of the income and comprehensive income, and a non-controlling interest is recorded within equity in the consolidated statements of financial position to reflect the non-controlling interest’s share of the net assets. For all other subsidiaries where CI holds a controlling interest, put and call options, or other exchange agreements, with respect to the remaining minority interests in the acquired businesses may exist. CI considers the non-controlling interest to have been acquired and consolidates 100% of the income and comprehensive income in the consolidated statements of income and comprehensive income, and records a corresponding liability with respect to the present value of the amount that could be required to be paid to the minority interest holders under the put arrangements. Hereinafter, CI and its subsidiaries are referred to as CI. CI manages a range of mutual funds, segregated funds, structured products and other funds that meet the definition of structured entities under IFRS. CI earns fees for providing management and administrative services to these investment funds. Fees are calculated on assets under management in these funds, which totalled $152.1 billion as at December 31, 2021 [2020 – $135.1 billion]. CI does not consolidate these investment funds because the form of fees and ownership interest are not significant enough to meet the definition of control under IFRS. CI provides no guarantees against the risk of financial loss to the investors of these investment funds. |
REVENUE RECOGNITION | REVENUE RECOGNITION Revenue is recognized when control of the goods or services are transferred by CI at an amount that reflects the consideration to which CI expects to be entitled in exchange for those goods or services. Revenue is measured at the fair value of the consideration received or receivable. In addition to these general principles, CI applies the following specific revenue recognition policies: Management fees are based upon the net asset value of the funds managed by CI and are recognized on an accrual basis. Administration fees and other income are recognized as services are provided under contractual arrangements. Administration fees include commission revenue, which is recorded on a trade date basis and advisory fees, which are recorded when the services related to the underlying engagements are completed. Redemption fees payable by security holders of deferred sales charge mutual funds, the sales commission of which was financed by CI, are recognized as revenue on the trade date of the redemption of the applicable mutual fund securities. |
FINANCIAL INSTRUMENTS | December 31, 2021. The classification of financial assets at initial recognition depends on the financial asset’s contractual cash flow characteristics and CI’s business model for managing them. With the exception of trade receivables, which do not contain a significant financing component and are measured at the transaction price in accordance with IFRS 15, Revenue from Contracts with Customers [“IFRS 15”], all financial assets are initially measured at fair value adjusted for transaction costs. Financial assets classified as FVPL are carried at fair value in the consolidated statements of financial position and any gains or losses are recorded in net income in the period in which they arise. Financial assets classified as FVPL include cash and cash equivalents, investments and other assets. Financial assets are classified at amortized cost using the effective interest method if they meet the following conditions and are not designated as FVPL: • they are held within a business model whose objective is to hold the financial assets and collect their contractual cash flows • the contractual terms of the financial assets give rise to cash flows that are solely payments of principal and interest on the principal amount outstanding Financial assets classified at amortized cost include client and trust funds on deposit, accounts receivable and other assets. Cash and cash equivalents Cash and cash equivalents include cash on deposit, highly liquid investments and interest-bearing deposits with original maturities of 90 days or less. Client and trust funds Client and trust funds on deposit include amounts representing cash held in trust with Canadian financial institutions for clients in respect of self-administered Registered Retirement Savings Plans and Registered Retirement Income Funds, and amounts received from clients for which the settlement date on the purchase of securities has not occurred or accounts in which the clients maintain a cash balance. Client and trust funds on deposit also include amounts for client transactions that are entered into on either a cash or margin basis and recorded on the trade date of the transaction. Amounts are due from clients on the settlement date of the transaction for cash accounts. For margin accounts, CI extends credit to a client for the purchase of securities, collateralized by the financial instruments in the client’s account. Amounts loaned are limited by margin regulations of the Investment Industry Regulatory Organization of Canada [“IIROC”] and other regulatory authorities, and are subject to CI’s credit review and daily monitoring procedures. The corresponding liabilities related to the above accounts and transactions are included in client and trust funds payable. Investments Investments include CI Investment Services securities owned, at market, principally for the purpose of selling or repurchasing in the near term. Securities owned, at market, are classified as FVPL and are initially recognized on the consolidated statements of financial position at fair value with transaction costs expensed as incurred. Subsequent realized and unrealized gains and losses are included in administration fees in the consolidated statements of income and comprehensive income in the period in which they arise. Securities transactions are recorded on a trade date basis. Market value is based on quoted prices where an active market exists. For securities in non-active markets, market value is based on valuation techniques and management’s best estimate of fair value. Also included in investments are marketable securities that consist of CI’s seed capital investments in CI mutual funds and strategic investments. Investments in marketable securities are measured at fair value and recognized on the trade date. Mutual fund securities are valued using the net asset value per unit of each fund. Realized and unrealized gains and losses are recognized using average cost and recorded in net income. Distributions from mutual fund securities are recorded as other income. Distributions that are reinvested increase the cost base of the mutual fund investments. Impairment of financial assets CI recognizes a loss allowance for expected credit losses on financial assets that are measured at amortized cost. At each reporting date, the loss allowance for the financial asset is measured at an amount equal to the lifetime expected credit losses if the credit risk on the financial asset has increased significantly since initial recognition. If at the reporting date, the credit risk on the financial asset has not increased significantly since initial recognition, the loss allowance is measured for the credit risk on the financial asset at an amount equal to 12 months of expected credit losses. For trade receivables, CI applies the simplified approach to providing for expected credit losses, which allows for the use of a lifetime expected credit loss provision. Impairment losses on financial assets carried at amortized cost are reversed in subsequent periods if the amount of the loss decreases and is related to an event occurring after the impairment was recognized. Classification and measurement of financial liabilities CI classifies its financial liabilities as FVPL and amortized cost. Financial liabilities are initially measured at fair value, and, where applicable, adjusted for transaction costs unless the financial liability is classified at FVPL. Subsequently, financial liabilities are measured at amortized cost using the effective interest method except for derivatives and financial liabilities designated at FVPL, which are carried subsequently at fair value with gains or losses recognized in net income. Financial liabilities classified at FVPL include contingent consideration and put option payables included in provisions and other financial liabilities. All other financial liabilities are measured at amortized cost. Derivative financial instruments and hedge accounting CI may use derivative financial instruments such as interest rate swaps and forward foreign exchange contracts to manage its interest rate and foreign currency risk related to long-term debt. Derivative financial instruments are initially recognized at fair value on the date a derivative contract is entered into and are subsequently remeasured at fair value. The accounting for subsequent changes depends on whether the derivative is designated as a hedging instrument, and if so, the nature of the item being hedged and the type of hedge relationship designated. To qualify for hedge accounting, the hedging relationship must meet all of the following requirements: • there is an economic relationship between the hedged item and the hedging instrument • the effect of credit risk does not dominate the value changes that result from that economic relationship • the hedge ratio of the hedging relationship is the same as that resulting from the quantity of the hedged item that the entity actually hedges and the quantity of the hedging instrument that the entity actually uses to hedge that quantity of hedged item |
FAIR VALUE MEASUREMENT | FAIR VALUE MEASUREMENT CI uses valuation techniques to determine the fair value of financial instruments where active market quotes are not available. This involves developing estimates and assumptions consistent with how market participants would price the instrument. CI maximizes the use of observable data when developing estimates and assumptions, but this is not always available. In that case management uses the best information available. All assets and liabilities for which fair value is measured or disclosed in the consolidated financial statements are categorized within the fair value hierarchy, described as follows, based on the lowest level input that is significant to the fair value measurement as a whole: • Level 1 – valuation based on quoted prices (unadjusted) observed in active markets for identical assets or liabilities • Level 2 – valuation techniques based on inputs that are quoted prices of similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; inputs other than quoted prices used in a valuation model that are observable for that instrument; and inputs that are derived from or corroborated by observable market data by correlation or other means • Level 3 – valuation techniques with significant unobservable market inputs For assets and liabilities that are recognized in the consolidated financial statements on a recurring basis, CI determines whether transfers have occurred between levels in the hierarchy by reassessing the categorization at the end of each reporting period. |
COLLATERALIZED SECURITIES TRANSACTIONS | COLLATERALIZED SECURITIES TRANSACTIONS CI engages in securities lending and borrowing to facilitate the securities settlement process and to maximize revenue by acting as an agent for such transactions. These transactions are typically short-term in nature, with interest being received on the cash delivered. These transactions are collateralized by either cash, letters of credit or other collateral and are subject to daily margin calls for any deficiency between the market value of the security given and the amount of collateral received. CI manages its credit exposure by establishing and monitoring aggregate limits by counterparty for these transactions. CI’s securities lending and borrowing transactions are recorded in accounts receivable and prepaid expenses and accounts payable and accrued liabilities. |
CAPITAL ASSETS | CAPITAL ASSETS Capital assets are recorded at cost less accumulated depreciation. These assets are depreciated over their estimated useful lives as follows: Computer hardware Straight-line over three years to five years Office equipment Straight-line over five years Leasehold improvements Straight-line over the term of the lease |
LEASES | LEASES CI assesses at inception whether a contract contains a lease that conveys the right to control the use of an identified asset for a period of time in exchange for consideration. All leases are accounted for by recognizing a right-of-use asset and a lease liability, except for leases of low-value assets and leases with a duration of 12 months or less. Right-of-use assets CI recognizes right-of-use assets at the commencement date of the lease. Right-of-use assets are measured at cost, less any accumulated depreciation and impairment losses, and adjusted for any remeasurement of lease liabilities. The cost of right-of-use assets includes the amount of lease liabilities recognized, initial direct costs incurred, and lease payments made at or before the commencement date less any incentives received. Right-of-use assets are depreciated on a straight-line basis over the shorter of their estimated useful life and the lease term. Lease liabilities At the commencement date of the lease, CI recognizes lease liabilities measured at the present value of lease payments to be made over the lease term. The lease payments include in-substance fixed payments less any lease incentives receivable, variable payments that depend on an index or a rate, and amounts expected to be paid under residual value guarantees. The lease payments also include the exercise price of a purchase option reasonably certain to be exercised by CI and payments of penalties for terminating a lease, if the lease term reflects CI exercising the option to terminate. The variable lease payments that do not depend on an index or a rate are recognized as expense in the period on which the event or condition that triggers the payment occurs. In calculating the present value of lease payments, CI uses the incremental borrowing rate at the lease commencement date if the interest rate implicit in the lease is not readily determinable. After the commencement date, the amount of lease liabilities is increased to reflect the accretion of interest and reduced for the lease payments made. In addition, the carrying amount of lease liabilities is remeasured if there is a modification, a change in the lease term, a change in the in-substance fixed lease payments or a change in the assessment to purchase the underlying asset. Short-term leases and lease of low-value assets CI applies the short-term lease recognition exemption to its short-term leases of equipment and property leases (i.e., those leases that have a lease term of 12 months or less from the commencement date and do not contain a purchase option). CI also applies the lease of low-value assets recognition exemption to leases of equipment that are considered of low value (i.e., below $5,000). Lease payments on short-term leases and leases of low-value assets are recognized as an expense on a straight-line basis over the lease term. Sub-leases CI enters into lease agreements as an intermediate lessor with respect to some of its leased properties. When CI is an intermediate lessor, the head lease and the sub-lease are accounted for as two separate contracts. The sub-lease is classified as a finance or operating lease by reference to the right-of-use asset arising from the head lease. Amounts due from lessees under finance leases are recognized as other assets at the amount of CI’s net investment in the leases. Finance lease income is recognized over the lease term using the effective interest rate. Payments received reduce the net investment in the lease. Rental income from operating leases is recognized on a straight-line basis over the term of the relevant lease. |
BUSINESS COMBINATIONS | BUSINESS COMBINATIONS The acquisition method of accounting is used to account for the acquisition of businesses by CI, whereby the purchase consideration is allocated to the identifiable assets and liabilities on the basis of fair value at the date of acquisition. Provisional fair values allocated at a reporting date are finalized as soon as the relevant information is available, within a period not to exceed 12 months from the acquisition date, with retroactive restatement of the impact of adjustments to those provisional fair values effective as at the acquisition date. CI elects on a transaction-by-transaction basis whether to measure any non-controlling interest at fair value, or at the proportionate share of the recognized amount of the identifiable net assets of the acquired subsidiary, at the acquisition date. Consideration transferred includes the fair values of the assets transferred, liabilities incurred and equity interests issued by CI. Consideration also includes the fair value of any liabilities for put arrangements for minority interests or contingent consideration. Subsequent to the acquisition, the put arrangements for minority interests and contingent consideration that is based on an earnings measurement and classified as a liability are measured at fair value with any resulting gain or loss recognized in net income. Acquisition-related costs are expensed as incurred. |
INTANGIBLES | INTANGIBLES Fund contracts Fund administration contracts and fund management contracts [collectively, “fund contracts”] are recorded net of any write-down for impairment. CI evaluates the carrying amounts of indefinite-life fund contracts at least annually for potential impairment by comparing the recoverable amount with their carrying amounts. CI will evaluate the carrying amount of fund contracts if events or changes in circumstances indicate a potential impairment. Any impairment would be written off to income. Fund administration contracts are amortized on a straight-line basis over a period of up to 25 years. Fund management contracts with a finite life are amortized on a straight-line basis over a period of up to 20 years. The amortization period depends on the contractual terms of such agreements and management’s best estimate of their useful lives. Fund management contracts with an indefinite life are not amortized. Goodwill Goodwill is recorded as the excess of purchase price over identifiable assets acquired. Following initial recognition, goodwill is stated at cost less any accumulated impairment losses. Goodwill is evaluated for impairment at least annually and any impairment is recognized immediately in income and not subsequently reversed. Goodwill is allocated to the asset management, Canadian wealth management and U.S. wealth management groups of cash-generating units [“CGUs”] for the purpose of impairment testing. Other intangibles Other intangibles include the costs of trademarks and computer software, capitalized where it is probable that future economic benefits that are attributable to the assets will flow to CI and the cost of the assets can be measured reliably. Computer software is recorded initially at cost and amortized over its expected useful life of two |
EQUITY-BASED COMPENSATION | EQUITY-BASED COMPENSATION CI uses the fair value method to account for equity-settled employee incentive share options and restricted share units [“RSUs”]. The value of the equity-based compensation, as at the date of grant, is recognized over the applicable vesting period as compensation expense with a corresponding increase in contributed surplus. When options are exercised, the proceeds received, together with the amount in contributed surplus, are credited to share capital. Upon vesting of the RSUs, the amount accumulated in contributed surplus for the RSUs is reclassified to share capital. CI has a deferred share unit plan for directors. The value of the compensation at the date of grant is recognized immediately as compensation with a corresponding increase in accounts payable and accrued liabilities. At each consolidated statement of financial position date, the liability is revalued with an offset to compensation expense. |
INCOME TAXES | INCOME TAXES Current income tax liabilities are measured at the amount expected to be paid to tax authorities, net of recoveries based on the tax rates and tax laws enacted or substantively enacted as at the consolidated statement of financial position dates. The liability method of tax allocation is used in accounting for income taxes. Under this method, deferred income tax assets and liabilities are determined based on differences between the carrying amount and tax basis of assets and liabilities and measured using the substantively enacted tax rates and laws that will be in effect when the differences are expected to reverse. Deferred tax assets are recognized to the extent that it is probable that taxable profits will be available against which deductible temporary differences can be utilized. Deferred tax liabilities are generally recognized for all taxable temporary differences. Deferred tax liabilities are recognized for taxable temporary differences arising in investments in subsidiaries and joint ventures except where the reversal of the temporary difference can be controlled and it is probable that the difference will not reverse in the foreseeable future. Deferred tax liabilities are not recognized on temporary differences that arise from the initial recognition of goodwill, which is not deductible for tax purposes. Deferred tax assets and liabilities are not recognized in respect of temporary differences that arise on initial recognition of assets and liabilities acquired other than in a business combination. |
PROVISIONS | PROVISIONS A provision is recognized if, as a result of a past event, CI has a present legal or constructive obligation that can be estimated reliably, and it is probable that an outflow of economic benefits will be required to settle the obligation. In the event that the time value of money is material, provisions are determined by discounting the expected future cash flows at a pre-tax rate that reflects a current market assessment of the time value of money and the risks specific to the liability. |
FOREIGN CURRENCY | FOREIGN CURRENCY (i) Foreign currency transactions Transactions that are denominated in a currency other than the functional currency of the entity are translated as follows: Monetary assets and liabilities are translated into Canadian dollars using the exchange rates in effect as at the consolidated statement of financial position dates. Non-monetary assets and liabilities are translated into Canadian dollars using historical exchange rates. Revenue and expenses are translated at average rates prevailing during the period. Other foreign currency transactions are translated into Canadian dollars using the exchange rate in effect on the transaction date. Translation exchange gains and losses are included in other income in the period in which they occur. (ii) Foreign currency operations The assets and liabilities of foreign operations, including goodwill and fair value adjustments arising on consolidation, are translated at the exchange rate in effect as at the consolidated statement of financial position dates. Revenue and expenses are translated at average rates prevailing during the period. Translation exchange gains and losses are recognized as other comprehensive income and reclassified to net income when the gain or loss on disposal of the foreign subsidiary is recognized. The consolidated statements of cash flows are translated at average exchange rates during the period, whereas cash and cash equivalents are translated at the spot exchange rate in effect as at the consolidated statement of financial position dates. |
CRITICAL ACCOUNTING ESTIMATES AND JUDGMENTS | CRITICAL ACCOUNTING ESTIMATES AND JUDGMENTS In the process of applying CI’s accounting policies, management has made significant judgments involving estimates and assumptions, which are summarized as follows: (i) Business combinations The purchase price related to business acquisitions is allocated to the underlying assets and liabilities based on their estimated fair value at the acquisition date. Management makes estimates to determine the fair value of assets and liabilities, including the valuation of separately identifiable intangibles acquired. Contingent consideration and certain put option payables, as part of the acquisitions, are based on the future performance of the acquired businesses. The estimates are based on management’s best assessment of the related inputs used in the valuation models, such as future cash flows, discount rates and volatility. Future performance results that differ from management’s estimates could result in changes to the liabilities, which are recorded as they arise in net income. (ii) Impairment of intangible assets Finite-life intangible assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. Indefinite-life intangible assets, including goodwill, are tested for impairment annually or more frequently if changes in circumstances indicate that the carrying amount may be impaired. The values associated with intangibles involve estimates and assumptions, including those with respect to future cash inflows and outflows, discount rates and asset lives. These estimates require significant judgment regarding market growth rates, fund flow assumptions, expected margins and costs that could affect CI’s future results if the current estimates of future performance and fair values change. These determinations also affect the amount of amortization expense on intangible assets with finite lives recognized in future periods. (iii) Deferred tax assets Deferred tax assets are recognized for unused tax losses to the extent that it is probable that taxable profits will be available against which the losses can be utilized. Significant management judgment is required to determine the amount of deferred tax assets that can be recognized, based upon the likely timing and level of future taxable profits together with future tax planning strategies. |
BUSINESS ACQUISITION (Tables)
BUSINESS ACQUISITION (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Business Combinations [Abstract] | |
Summary of net assets acquired | Details of the net assets acquired during the year ended December 31, 2021, at fair value, are as follows: Wealth Management Asset Management Total $ $ $ Cash and cash equivalents 37,523 145 37,668 Accounts receivable and prepaid expenses 51,868 292 52,160 Capital assets 11,044 68 11,112 Right-of-use assets 57,494 — 57,494 Deferred tax (6,585) (1,344) (7,929) Intangibles 741,668 5,041 746,709 Other assets 874 24 898 Accounts payable and accrued liabilities (104,514) (233) (104,747) Long-term debt (236,964) — (236,964) Lease liabilities (57,494) — (57,494) Fair value of identifiable net assets 494,914 3,993 498,907 Non-controlling interest 10,722 — 10,722 Acquisition date fair value of initial interest — (2,016) (2,016) Goodwill on acquisition 1,198,522 2,463 1,200,985 Total acquired cost 1,704,158 4,440 1,708,598 Cash consideration 968,817 3,440 972,257 Share consideration 62,737 1,000 63,737 Provision for other liabilities 672,604 — 672,604 1,704,158 4,440 1,708,598 Details of the net assets acquired during the year ended December 31, 2020, at fair value, are as follows: Wealth Management Asset Management Total $ $ $ Cash and cash equivalents 19,578 1,736 21,314 Client and trust funds on deposit 450,932 — 450,932 Accounts receivable and prepaid expenses 6,398 331 6,729 Capital assets 1,390 5 1,395 Right-of-use assets 14,724 — 14,724 Deferred tax (4,219) 6,896 2,677 Intangibles 393,744 1,753 395,497 Other assets 344 — 344 Accounts payable and accrued liabilities (18,245) (1,298) (19,543) Clients and trust funds payable (450,932) — (450,932) Income taxes payable (312) — (312) Lease liability (15,545) — (15,545) Fair value of identifiable net assets 397,857 9,423 407,280 Non-controlling interest (35,222) — (35,222) Goodwill on acquisition 528,557 763 529,320 Total acquired cost 891,192 10,186 901,378 Cash consideration 537,430 5,500 542,930 Share consideration 35,434 — 35,434 Provision for other liabilities 318,328 4,686 323,014 891,192 10,186 901,378 |
CAPITAL ASSETS (Tables)
CAPITAL ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Property, plant and equipment [abstract] | |
Schedule of capital assets | Capital assets consist of the following: Computer hardware Office equipment Leasehold improvements Total $ $ $ $ Cost Balance, December 31, 2019 19,203 20,342 87,445 126,990 Acquired 468 748 179 1,395 Additions 6,687 1,172 4,131 11,990 Retired (1,739) — — (1,739) Translation (105) (46) (18) (169) Balance, December 31, 2020 24,514 22,216 91,737 138,467 Acquired 1,038 1,982 8,092 11,112 Additions 4,648 986 2,164 7,798 Retired (8,871) (220) (353) (9,444) Translation (10) (5) 67 52 Balance, December 31, 2021 21,319 24,959 101,707 147,985 Accumulated depreciation Balance, December 31, 2019 14,420 15,743 50,873 81,036 Depreciation 3,756 1,644 6,895 12,295 Retired (1,739) — — (1,739) Translation (51) (41) (11) (103) Balance, December 31, 2020 16,386 17,346 57,757 91,489 Depreciation 4,209 1,956 7,047 13,212 Retired (8,762) (143) (334) (9,239) Translation (40) 2 (35) (73) Balance, December 31, 2021 11,793 19,161 64,435 95,389 Carrying amounts At December 31, 2019 4,783 4,599 36,572 45,954 At December 31, 2020 8,128 4,870 33,980 46,978 At December 31, 2021 9,526 5,798 37,272 52,596 |
INTANGIBLES (Tables)
INTANGIBLES (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Intangible assets and goodwill [abstract] | |
Schedule of intangible assets | Goodwill Fund administration contracts Fund management contracts finite-life Fund management contracts indefinite-life Other intangibles Total $ $ $ $ $ $ Cost Balance, December 31, 2019 1,531,273 49,500 50,157 1,779,957 64,177 3,475,064 Acquired 529,320 392,904 — 1,753 1,006 924,983 Additions — — — — 17,132 17,132 Translation (6,921) (10,439) (112) (2,809) (29) (20,310) Balance, December 31, 2020 2,053,672 431,965 50,045 1,778,901 82,286 4,396,869 Acquired 1,200,985 713,490 5,041 27,807 1,890 1,949,213 Additions — — — — 12,420 12,420 Retired — — — — (555) (555) Translation 1,284 3,526 (189) (4,041) (14) 566 Balance, December 31, 2021 3,255,941 1,148,981 54,897 1,802,667 96,027 6,358,513 Accumulated amortization Balance, December 31, 2019 — 25,721 31,396 — 29,465 86,582 Acquired — — — 166 166 Amortization — 9,325 2,037 — 7,955 19,317 Translation — (210) 20 — (4) (194) Balance, December 31, 2020 — 34,836 33,453 — 37,582 105,871 Acquired — — — — 1,519 1,519 Amortization — 53,541 2,307 — 10,289 66,137 Retired — — — — (538) (538) Translation — 384 (83) — (14) 287 Balance, December 31, 2021 — 88,761 35,677 — 48,838 173,276 Carrying amounts At December 31, 2019 1,531,273 23,779 18,761 1,779,957 34,712 3,388,482 At December 31, 2020 2,053,672 397,129 16,592 1,778,901 44,704 4,290,998 At December 31, 2021 3,255,941 1,060,220 19,220 1,802,667 47,189 6,185,237 Remaining term N/A 6.9 – 12.0 yrs 5.3 – 11.9 yrs N/A 0.1 – 7.8 yrs |
OTHER ASSETS, INCOME AND EXPE_2
OTHER ASSETS, INCOME AND EXPENSE (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Subclassifications of assets, liabilities and equities [abstract] | |
Schedule of other assets | Other assets as at December 31, 2021 consist of the following: 2021 2020 $ $ Long-term investments 48,560 23,925 Investments accounted for using the equity method 258,408 40,266 Advisor and employee loans 36,422 36,470 Other related party loans 20,361 9,072 Other 19,436 15,009 383,187 124,742 |
LONG-TERM DEBT (Tables)
LONG-TERM DEBT (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Financial Instruments [Abstract] | |
Schedule of long-term debt | Long-term debt consists of the following: Interest rate Issued date Maturity date 2021 2020 $ $ Credit facility and loans payable Bankers’ acceptances 297,500 — Fiduciary Network, LLC December 15, 2024 146,986 — 444,486 — Debenture principal amount $200 million 2.775% November 25, 2016 November 25, 2021 — 203,805 $325 million 3.520% July 20, 2018 July 20, 2023 — 323,944 $301 million 3.215% July 22, 2019 July 22, 2024 300,257 348,454 $450 million 3.759% May 26, 2020 May 26, 2025 448,278 447,829 $250 million 3.904% September 27, 2017 September 27, 2027 249,032 248,891 $960 million USD 3.200% December 17, 2020 December 17, 2030 1,207,689 883,193 $900 million USD 4.100% June 2, 2021 June 15, 2051 1,126,296 — 3,331,552 2,456,116 Long-term debt 3,776,038 2,456,116 Current portion of long-term debt 444,486 203,805 Interest paid on the debentures and notes is paid semi-annually. During the years ended December 31, 2021 and 2020, interest paid is as follows: Interest rate Issued date Maturity date 2021 2020 $ $ Interest paid on debentures and notes $450 million 2.645% December 7, 2015 December 7, 2020 — 10,305 $200 million 2.775% November 25, 2016 November 25, 2021 — 5,409 $325 million 3.520% July 20, 2018 July 20, 2023 1,486 11,440 $301 million 3.215% July 22, 2019 July 22, 2024 10,106 11,384 $450 million 3.759% May 26, 2020 May 26, 2025 16,916 10,098 $250 million 3.904% September 27, 2017 September 27, 2027 9,760 9,760 $960 million USD 3.200% December 17, 2020 December 17, 2030 38,096 1,115 $900 million USD 4.100% June 2, 2021 June 15, 2051 26,129 — 102,493 59,511 |
PROVISIONS AND OTHER FINANCIA_2
PROVISIONS AND OTHER FINANCIAL LIABILITIES (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Other provisions [abstract] | |
Schedule of provisions and other financial liabilities | The movement in provisions and other financial liabilities during the years ended December 31, are as follows: Provisions Acquisition liabilities Provisions Acquisition liabilities 2021 2021 2020 2020 $ $ $ $ Provisions and other financial liabilities, beginning of year 46,181 337,371 25,563 7,573 Additions 23,478 743,426 56,277 334,616 Amounts used (28,390) (324,272) (34,869) (701) Amounts reversed (10) (1,842) (790) — Fair value change - acquisition liabilities — 157,102 — — Translation - acquisition liabilities — (971) — (4,117) Provisions and other financial liabilities, end of year 41,259 910,814 46,181 337,371 Current portion of provisions and other financial liabilities 6,942 565,490 45,298 230,412 Included in provisions and other financial liabilities in connection with business acquisitions are: As at As at December 31, 2021 December 31, 2020 Deferred consideration $ 136,053 $ 96,855 Fair value of contingent consideration $ 346,894 $ 131,122 Fair value of put arrangements $ 427,867 $ 109,394 Total acquisition liabilities $ 910,814 $ 337,371 |
LEASES (Tables)
LEASES (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Leases [Abstract] | |
Summary of right-of-use assets | The following shows the carrying amounts of CI’s right-of-use assets and lease liabilities, and the movements during the year ended December 31, 2021: Right-of-use assets Property leases Equipment leases Total Lease liabilities $ $ $ $ As at January 1, 2021 50,016 604 50,620 76,233 Additions, acquired & modifications (*) 105,056 1,038 106,094 114,125 Depreciation expense (14,213) (543) (14,756) — Interest expense — — — 3,463 Payments — — — (20,130) Translation 647 1 648 65 As at December 31, 2021 141,506 1,100 142,606 173,756 ( *) Right-of-use asset includes reclass of subleased properties $8,229 |
Summary of lease liabilities | The following shows the carrying amounts of CI’s right-of-use assets and lease liabilities, and the movements during the year ended December 31, 2021: Right-of-use assets Property leases Equipment leases Total Lease liabilities $ $ $ $ As at January 1, 2021 50,016 604 50,620 76,233 Additions, acquired & modifications (*) 105,056 1,038 106,094 114,125 Depreciation expense (14,213) (543) (14,756) — Interest expense — — — 3,463 Payments — — — (20,130) Translation 647 1 648 65 As at December 31, 2021 141,506 1,100 142,606 173,756 ( *) Right-of-use asset includes reclass of subleased properties $8,229 |
SHARE CAPITAL (Tables)
SHARE CAPITAL (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Share Capital [Abstract] | |
Schedule of authorized and issued shares | A summary of the changes to CI’s share capital for the years ended December 31 is as follows: [A] AUTHORIZED AND ISSUED Number of shares Stated value [in thousands] $ Authorized An unlimited number of common shares of CI Issued Common shares, balance, December 31, 2019 221,792 1,944,311 Issuance for acquisition of subsidiaries, net of issuance costs 2,034 35,434 Issuance of share capital for equity-based plans, net of tax 522 8,488 Share repurchases, net of tax (13,990) (120,236) Common shares, balance, December 31, 2020 210,358 1,867,997 Issuance for acquisition of subsidiary, net of issuance costs 3,712 78,916 Issuance of share capital for equity-based plans, net of tax 799 10,825 Share repurchases, net of tax (17,447) (147,585) Common shares, balance, December 31, 2021 197,422 1,810,153 |
Schedule of changes in share option plan | A summary of the changes in the Share Option Plan is as follows: Number of options Weighted average exercise price [in thousands] $ Options outstanding, December 31, 2019 5,584 29.63 Options exercisable, December 31, 2019 4,758 31.26 Options cancelled (2,978) 34.28 Options outstanding, December 31, 2020 2,606 26.38 Options exercisable, December 31, 2020 2,020 28.44 Options exercised (*) (3) 27.44 Options cancelled (1,792) 28.41 Options outstanding, December 31, 2021 811 21.88 Options exercisable, December 31, 2021 274 27.53 (*) Weighted-average share price of options exercised was $30.13 during the year ended December 31, 2021 [2020 - nil] |
Schedule of options outstanding and exercisable | Options outstanding and exercisable as at December 31, 2021 are as follows: Exercise price Number of options outstanding Weighted average remaining contractual life Number of options exercisable $ [in thousands] [years] [in thousands] 18.99 537 7.2 — 27.44 254 0.2 254 28.67 20 1.2 20 18.99 to 28.67 811 4.9 274 |
Summary of changes in RSU Plan | A summary of the changes in the RSU Plan is as follows: Number of RSUs [in thousands] 2021 2020 RSUs outstanding, beginning of year 504 657 Granted, excluding dividends 1,783 350 Granted, dividends 58 36 Exercised (849) (521) Forfeited (59) (18) RSUs outstanding, end of year 1,437 504 |
Schedule of basic and diluted earnings per share | The following table presents the calculation of basic and diluted earnings per common share for the years ended December 31: [in thousands] 2021 2020 Numerator: Net income attributable to shareholders of the Company - basic and diluted $409,328 $475,978 Denominator: Weighted average number of common shares - basic 201,628 214,092 Weighted average effect of dilutive stock options and RSU awards (*) 838 1,527 Weighted average number of common shares - diluted 202,466 215,619 Net earnings per common share attributable to shareholders Basic $2.03 $2.22 Diluted $2.02 $2.21 (*) The determination of the weighted average number of common shares - diluted excludes 274 thousand shares related to stock options that were anti-dilutive for the year ended December 31, 2021 [ 2020 - 2,606 thousand shares]. |
Disclosure of maximum share dilution | The following table presents the maximum number of shares that would be outstanding if all the outstanding options were exercised and if all RSU awards vested as at January 31, 2022: [in thousands] Shares outstanding at January 31, 2022 197,422 RSU awards 1,434 Options to purchase shares 807 199,663 |
DIVIDENDS (Tables)
DIVIDENDS (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Dividends [Abstract] | |
Disclosure Of Details Of Dividends Paid And Declared | The following dividends were paid by CI during the year ended December 31, 2021: Record date Payment date Cash dividend per share Total dividend amount $ $ December 31, 2020 January 15, 2021 0.18 37,869 March 31, 2021 April 15, 2021 0.18 36,728 June 30, 2021 July 15, 2021 0.18 36,239 September 30, 2021 October 15, 2021 0.18 35,611 Paid during the year ended December 31, 2021 146,447 The following dividends were declared but not paid as at December 31, 2021: Record date Payment date Cash dividend per share Total dividend amount $ $ December 31, 2021 January 14, 2022 0.18 35,536 March 31, 2022 April 15, 2022 0.18 35,536 Declared and accrued as at December 31, 2021 71,072 The following dividends were paid by CI during the year ended December 31, 2020: Record date Payment date Cash dividend per share Total dividend amount $ $ December 31, 2019 January 15, 2020 0.18 39,971 March 31, 2020 April 15, 2020 0.18 38,995 June 30, 2020 July 15, 2020 0.18 38,574 September 30, 2020 October 15, 2020 0.18 37,773 Paid during the year ended December 31, 2020 155,313 The following dividends were declared but not paid as at December 31, 2020: Record date Payment date Cash dividend per share Total dividend amount $ $ December 31, 2020 January 15, 2021 0.18 37,649 March 31, 2021 April 15, 2021 0.18 37,648 75,297 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Income Tax [Abstract] | |
Summary of major components of income tax expense | The following are the major components of income tax expense for the years ended December 31: 2021 2020 $ $ Consolidated Statements of Income Current income tax expense Based on taxable income of the current year 217,896 171,637 Adjustments in respect of prior years (1,685) (2,714) 216,211 168,923 Deferred income tax expense Origination and reversal of temporary differences (net) (42,419) (1,722) (42,419) (1,722) Income tax expense reported in the consolidated statements of income 173,792 167,201 |
Reconciliation between statutory and effective income tax rates | The following is a reconciliation between CI’s statutory and effective income tax rates for the years ended December 31: 2021 2020 % % Combined Canadian federal and provincial income tax rate 26.5 26.5 Increase (decrease) in income taxes resulting from Recovery of prior years’ provisions for settled tax items 0.1 (0.5) Other, net 3.0 — Income tax expense reported in the consolidated statements of income and comprehensive income 29.6 26.0 |
Summary of significant components of deferred income tax assets and liabilities | Significant components of CI’s deferred income tax assets and liabilities are as follows at December 31, 2021: December 31, 2020 Recognized in net income Business acquisition [note 2] Recognized in equity and FX December 31, 2021 $ $ $ $ $ Net deferred income tax (assets) liabilities Fund contracts 487,348 (26,901) 8,095 (1,517) 467,025 Right-of-use assets 12,904 24,623 — — 37,527 Equity-based compensation (14,400) 531 — (2,784) (16,653) Non-capital loss carryforwards (7,341) (1,835) — — (9,176) Provisions and other financial liabilities (7,611) (4,859) — — (12,470) Lease liabilities (19,409) (26,523) — — (45,932) Other 11,398 (7,455) (166) (222) 3,555 Net deferred income tax (assets) liabilities 462,889 (42,419) 7,929 (4,523) 423,876 Significant components of CI’s deferred income tax assets and liabilities are as follows at December 31, 2020: December 31, 2019 Recognized in net income Business acquisition Recognized in equity and FX December 31, 2020 $ $ $ $ $ Net deferred income tax (assets) liabilities Fund contracts 482,696 (1,197) 4,188 1,661 487,348 Right-of-use assets 11,866 1,038 — — 12,904 Equity-based compensation (12,950) (1,982) — 532 (14,400) Non-capital loss carryforwards (5,116) 4,681 (6,906) — (7,341) Provision for other liabilities (2,690) (4,921) — — (7,611) Lease liabilities (19,163) (246) — — (19,409) Other 10,198 905 41 254 11,398 Net deferred income tax (assets) liabilities 464,841 (1,722) (2,677) 2,447 462,889 |
FINANCIAL INSTRUMENTS (Tables)
FINANCIAL INSTRUMENTS (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Fair Value Measurement [Abstract] | |
Summary of financial assets | The carrying amounts of the financial instruments are presented in the table below and are classified according to the following categories: December 31, 2021 December 31, 2020 $ $ Financial assets Fair value through profit or loss Cash and cash equivalents 230,779 483,598 Investments 131,772 133,375 Other assets 48,560 12,210 Amortized cost Client and trust funds on deposit 1,199,904 973,143 Accounts receivable 242,154 219,074 Other assets 59,172 44,314 Total financial assets 1,898,373 1,865,714 Financial liabilities Fair value through profit or loss Provisions and other financial liabilities 774,761 240,516 Amortized cost Accounts payable and accrued liabilities 351,495 308,797 Provisions and other financial liabilities 177,312 143,036 Dividends payable 71,072 75,297 Client and trust funds payable 1,202,079 961,080 Long-term debt 3,776,038 2,456,116 Total financial liabilities 6,352,757 4,184,842 |
Summary of financial liabilities | The carrying amounts of the financial instruments are presented in the table below and are classified according to the following categories: December 31, 2021 December 31, 2020 $ $ Financial assets Fair value through profit or loss Cash and cash equivalents 230,779 483,598 Investments 131,772 133,375 Other assets 48,560 12,210 Amortized cost Client and trust funds on deposit 1,199,904 973,143 Accounts receivable 242,154 219,074 Other assets 59,172 44,314 Total financial assets 1,898,373 1,865,714 Financial liabilities Fair value through profit or loss Provisions and other financial liabilities 774,761 240,516 Amortized cost Accounts payable and accrued liabilities 351,495 308,797 Provisions and other financial liabilities 177,312 143,036 Dividends payable 71,072 75,297 Client and trust funds payable 1,202,079 961,080 Long-term debt 3,776,038 2,456,116 Total financial liabilities 6,352,757 4,184,842 |
Schedule of assets at fair value | Investments consist of the following as at December 31, 2021: Total Level 1 Level 2 Level 3 $ $ $ $ Marketable securities 116,879 33,278 79,946 3,655 Securities owned, at market 14,893 14,893 — — Total investments 131,772 48,171 79,946 3,655 Inv estments consist of the following as at December 31, 2020: Total Level 1 Level 2 Level 3 $ $ $ $ Marketable securities 118,126 37,193 77,278 3,655 Securities owned, at market 15,249 15,249 — — Total investments 133,375 52,442 77,278 3,655 |
RISK MANAGEMENT (Tables)
RISK MANAGEMENT (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Risk Management [Abstract] | |
Schedule of Market Risk | The following table provides the impact on net income and other comprehensive income [“OCI”] of a 10% change in the value of foreign currencies with respect to CI’s net financial assets as at December 31, 2021: 10% strengthening of foreign exchange rate on net income 10% strengthening of foreign exchange rate on OCI 10% weakening of foreign exchange rate on net income 10% weakening of foreign exchange rate on OCI United States dollar (301,683) 4,917 301,683 (4,917) Australian dollar (191) 1,469 191 (1,469) Hong Kong dollar 138 — (138) — The following table provides the impact on net income and OCI of a 10% change in the value of foreign currencies with respect to CI’s net financial assets as at December 31, 2020: 10% strengthening of foreign exchange rate on net income 10% strengthening of foreign exchange rate on OCI 10% weakening of foreign exchange rate on net income 10% weakening of foreign exchange rate on OCI United States dollar (75,123) 1,511 75,123 (1,511) Australian dollar 389 761 (389) (761) Hong Kong dollar 127 — (127) — |
Schedule of Contractual Maturities | CI’s liabilities have contractual maturities, excluding interest payments, as follows: Total 2022 2023 2024 2025 2027 2030 2051 $ $ $ $ $ $ $ $ Accounts payable and accrued liabilities 351,495 351,495 — — — — — — Dividends payable 71,072 71,072 — — — — — — Client and trust funds payable 1,202,079 1,202,079 — — — — — — Long-term debt 3,798,711 444,486 — 301,433 450,000 250,000 1,214,344 1,138,448 Deferred consideration 136,053 123,277 12,776 — — — — — Contingent consideration 346,894 41,773 225,747 63,368 16,006 — — — Put option 427,867 400,440 — 5,647 18,782 2,998 — — Total 6,334,171 2,634,622 238,523 370,448 484,788 252,998 1,214,344 1,138,448 $ 2022 27,817 2023 26,012 2024 25,114 2025 23,304 2026 21,745 2027+ 121,300 |
Schedule of Credit Risk | Securities lending and borrowing agreements consist of the following as at December 31, 2021: Cash Securities $ $ Loaned or delivered as collateral 6,942 6,631 Borrowed or received as collateral 16,882 16,530 Securities lending and borrowing agreements consist of the following as at December 31, 2020: Cash Securities $ $ Loaned or delivered as collateral 12,321 11,523 Borrowed or received as collateral 31,862 30,520 |
CAPITAL MANAGEMENT (Tables)
CAPITAL MANAGEMENT (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Capital Management [Abstract] | |
Schedule of Capital Management | CI’s capital consists of the following: As at As at December 31, 2021 December 31, 2020 $ $ Shareholders’ equity 1,588,517 1,582,447 Long-term debt 3,776,038 2,456,116 Total capital 5,364,555 4,038,563 |
COMMITMENTS (Tables)
COMMITMENTS (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Other Provisions, Contingent Liabilities And Contingent Assets [Abstract] | |
Schedule of Contractual Maturities | CI’s liabilities have contractual maturities, excluding interest payments, as follows: Total 2022 2023 2024 2025 2027 2030 2051 $ $ $ $ $ $ $ $ Accounts payable and accrued liabilities 351,495 351,495 — — — — — — Dividends payable 71,072 71,072 — — — — — — Client and trust funds payable 1,202,079 1,202,079 — — — — — — Long-term debt 3,798,711 444,486 — 301,433 450,000 250,000 1,214,344 1,138,448 Deferred consideration 136,053 123,277 12,776 — — — — — Contingent consideration 346,894 41,773 225,747 63,368 16,006 — — — Put option 427,867 400,440 — 5,647 18,782 2,998 — — Total 6,334,171 2,634,622 238,523 370,448 484,788 252,998 1,214,344 1,138,448 $ 2022 27,817 2023 26,012 2024 25,114 2025 23,304 2026 21,745 2027+ 121,300 |
SEGMENTED INFORMATION (Tables)
SEGMENTED INFORMATION (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Disclosure of operating segments [abstract] | |
Schedule of segmented information | Segmented information as at and for the year ended December 31, 2021 is as follows: Asset management Wealth management Intersegment eliminations Total $ $ $ $ Management fees 1,809,967 — (17,864) 1,792,103 Administration fees — 1,052,828 (190,193) 862,635 Other income 26,949 45,330 — 72,279 Total revenue 1,836,916 1,098,158 (208,057) 2,727,017 Selling, general and administrative 376,670 344,009 (18,403) 702,276 Trailer fees 586,237 — (34,537) 551,700 Advisor and dealer fees — 579,243 (154,738) 424,505 Deferred sales commissions 6,093 — (379) 5,714 Amortization and depreciation 25,383 71,438 — 96,821 Other expenses 90,624 159,541 — 250,165 Total expenses 1,085,007 1,154,231 (208,057) 2,031,181 Income before income taxes and non-segmented items 751,909 (56,073) — 695,836 Interest and lease finance (109,670) Provision for income taxes (173,792) Net income for the year 412,374 Indefinite-life intangibles Goodwill 1,312,543 1,943,398 — 3,255,941 Fund contracts 1,774,050 28,617 — 1,802,667 Total indefinite-life intangibles 3,086,593 1,972,015 — 5,058,608 Segmented information as at and for the year ended December 31, 2020 is as follows: Asset management Wealth management Intersegment eliminations Total $ $ $ $ Management fees 1,650,076 — (14,303) 1,635,773 Administration fees — 530,058 (165,650) 364,408 Other income (2,227) 54,830 — 52,603 Total revenue 1,647,849 584,888 (179,953) 2,052,784 Selling, general and administrative 325,245 138,805 (14,611) 449,439 Trailer fees 538,409 — (28,965) 509,444 Advisor and dealer fees — 389,264 (135,888) 253,376 Deferred sales commissions 7,981 — (489) 7,492 Amortization and depreciation 24,714 18,800 — 43,514 Other expenses 69,176 12,156 — 81,332 Total expenses 965,525 559,025 (179,953) 1,344,597 Income before income taxes and non-segmented items 682,324 25,863 — 708,187 Interest (65,440) Provision for income taxes (167,201) Net income for the year 475,546 Indefinite-life intangibles Goodwill 1,311,873 741,799 — 2,053,672 Fund contracts 1,778,901 — — 1,778,901 Total indefinite-life intangibles 3,090,774 741,799 — 3,832,573 |
Schedule of geographic segment information | Geographic segment information: 2021 2020 Revenue from external customers $ $ Canada 2,330,892 1,971,291 United States 338,722 47,195 Australia 57,403 34,298 Total 2,727,017 2,052,784 2021 2020 Non-current assets $ $ Canada 3,669,613 3,492,876 United States 3,039,774 912,731 Australia 111,069 115,495 Hong Kong 71 82 Total 6,820,527 4,521,184 |
COMPENSATION OF KEY MANAGEMENT
COMPENSATION OF KEY MANAGEMENT (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Analysis of income and expense [abstract] | |
Summary of compensation of key management | The remuneration of directors and other key management personnel of CI during the years ended December 31 is as follows: 2021 2020 $ $ Cash compensation 11,707 5,155 Equity-based compensation 9,072 6,660 Total 20,779 11,815 |
AMORTIZATION AND DEPRECIATION (
AMORTIZATION AND DEPRECIATION (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Analysis of income and expense [abstract] | |
Summary of amortization and depreciation | 2021 2020 $ $ Depreciation of capital assets 13,212 12,295 Depreciation of right-of-use assets 14,756 9,848 Amortization of intangibles 66,137 19,317 Amortization of debenture transaction costs 2,716 2,054 Total amortization and depreciation 96,821 43,514 |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - CAD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Disclosure of information about unconsolidated structured entities controlled by investment entity [line items] | ||
Assets | $ 8,659,551 | $ 6,359,836 |
Fund administration contracts | Top of range | ||
Disclosure of information about unconsolidated structured entities controlled by investment entity [line items] | ||
Useful life of intangible assets | 25 years | |
Fund management contracts finite-life | Top of range | ||
Disclosure of information about unconsolidated structured entities controlled by investment entity [line items] | ||
Useful life of intangible assets | 20 years | |
Computer software | Bottom of range | ||
Disclosure of information about unconsolidated structured entities controlled by investment entity [line items] | ||
Useful life of intangible assets | 2 years | |
Computer software | Top of range | ||
Disclosure of information about unconsolidated structured entities controlled by investment entity [line items] | ||
Useful life of intangible assets | 10 years | |
Computer hardware | Bottom of range | ||
Disclosure of information about unconsolidated structured entities controlled by investment entity [line items] | ||
Useful life of capital assets | 3 years | |
Computer hardware | Top of range | ||
Disclosure of information about unconsolidated structured entities controlled by investment entity [line items] | ||
Useful life of capital assets | 5 years | |
Office equipment | ||
Disclosure of information about unconsolidated structured entities controlled by investment entity [line items] | ||
Useful life of capital assets | 5 years | |
Unconsolidated structured entities | ||
Disclosure of information about unconsolidated structured entities controlled by investment entity [line items] | ||
Assets | $ 152,100,000 | $ 135,100,000 |
BUSINESS ACQUISITION - Narrativ
BUSINESS ACQUISITION - Narrative (Details) shares in Thousands, $ in Thousands | 12 Months Ended | ||||||
Dec. 31, 2021CAD ($) | Dec. 31, 2020CAD ($) | Feb. 22, 2022 | Feb. 11, 2022 | Jan. 11, 2022 | Oct. 19, 2020shares | Feb. 19, 2020 | |
Fund administration contracts | Top of range | |||||||
Disclosure of detailed information about business combination [line items] | |||||||
Useful life of intangible assets | 25 years | ||||||
Aggregated individually immaterial business combinations | |||||||
Disclosure of detailed information about business combination [line items] | |||||||
Revenue of acquiree since acquisition date | $ 165,837 | $ 58,672 | |||||
Net income of acquiree since acquisition date | 36,913 | 3,261 | |||||
Pro-forma revenue | 2,999,089 | 2,270,038 | |||||
Pro-forma net income | 472,694 | 487,013 | |||||
Intangibles | 746,709 | 395,497 | |||||
Goodwill expected to be deductible for tax purposes | 1,144,182 | 495,546 | |||||
Deferred compensation payable | 542,505 | 81,937 | |||||
Put option payable, at acquisition date | 279,896 | $ 99,298 | |||||
Deferred compensation, period due | 1 year | ||||||
Contingent consideration, at acquisition date | 130,099 | $ 126,485 | |||||
Goodwill on acquisition | $ 1,200,985 | 529,320 | |||||
Deferred compensation, payable in shares | $ 15,294 | ||||||
Aggregated individually immaterial business combinations | Bottom of range | |||||||
Disclosure of detailed information about business combination [line items] | |||||||
Contingent liabilities, period due | 1 year | 1 year | |||||
Contingent liabilities, recorded as compensation, period due | 2 years | ||||||
Aggregated individually immaterial business combinations | Top of range | |||||||
Disclosure of detailed information about business combination [line items] | |||||||
Contingent liabilities, period due | 4 years | 4 years | |||||
Contingent liabilities, recorded as compensation, period due | 3 years | ||||||
Aggregated individually immaterial business combinations | Wealth Management | |||||||
Disclosure of detailed information about business combination [line items] | |||||||
Intangibles | $ 741,668 | $ 393,744 | |||||
Goodwill on acquisition | 1,198,522 | 528,557 | |||||
Aggregated individually immaterial business combinations | Asset Management | |||||||
Disclosure of detailed information about business combination [line items] | |||||||
Intangibles | 5,041 | 1,753 | |||||
Goodwill on acquisition | 2,463 | 763 | |||||
Aggregated individually immaterial business combinations | Fund management contracts indefinite-life | |||||||
Disclosure of detailed information about business combination [line items] | |||||||
Intangibles | 27,807 | 1,753 | |||||
Aggregated individually immaterial business combinations | Other intangibles | |||||||
Disclosure of detailed information about business combination [line items] | |||||||
Intangibles | 371 | 840 | |||||
Aggregated individually immaterial business combinations | Fund administration contracts | |||||||
Disclosure of detailed information about business combination [line items] | |||||||
Intangibles | $ 718,531 | $ 392,904 | |||||
Useful life of intangible assets | 12 years | 12 years | |||||
Northwood Family Office Ltd. | Major business combination | |||||||
Disclosure of detailed information about business combination [line items] | |||||||
Percent acquired | 100.00% | ||||||
Galapagos Partners, L.P. | Major business combination | |||||||
Disclosure of detailed information about business combination [line items] | |||||||
Percent acquired | 100.00% | ||||||
Corient Capital Partners, LLC | Major business combination | |||||||
Disclosure of detailed information about business combination [line items] | |||||||
Percent acquired | 100.00% | ||||||
CI ETF Investment Management Inc. | |||||||
Disclosure of detailed information about business combination [line items] | |||||||
Percent acquired | 100.00% | ||||||
Aligned Capital Distributions Inc. | |||||||
Disclosure of detailed information about business combination [line items] | |||||||
Number of shares issued | shares | 855 | ||||||
GLASFunds, LLC | |||||||
Disclosure of detailed information about business combination [line items] | |||||||
Period to obtain majority ownership interest | 4 years |
BUSINESS ACQUISITION - Summary
BUSINESS ACQUISITION - Summary of net assets acquired (Details) - CAD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Consideration | ||
Cash consideration | $ 308,907 | |
Share consideration | 15,179 | |
Aggregated individually immaterial business combinations | ||
Disclosure of detailed information about business combination [line items] | ||
Cash and cash equivalents | 37,668 | $ 21,314 |
Client and trust funds on deposit | 450,932 | |
Accounts receivable and prepaid expenses | 52,160 | 6,729 |
Capital assets | 11,112 | 1,395 |
Right-of-use assets | 57,494 | 14,724 |
Deferred tax | (7,929) | 2,677 |
Intangibles | 746,709 | 395,497 |
Other assets | 898 | 344 |
Accounts payable and accrued liabilities | (104,747) | (19,543) |
Clients and trust funds payable | (450,932) | |
Long-term debt | (236,964) | |
Income taxes payable | (312) | |
Lease liabilities | (57,494) | (15,545) |
Fair value of identifiable net assets | 498,907 | 407,280 |
Non-controlling interest | 10,722 | 35,222 |
Acquisition date fair value of initial interest | (2,016) | |
Goodwill on acquisition | 1,200,985 | 529,320 |
Total acquired cost | 1,708,598 | 901,378 |
Consideration | ||
Cash consideration | 972,257 | 542,930 |
Share consideration | 63,737 | 35,434 |
Provision for other liabilities | 672,604 | 323,014 |
Total consideration | 1,708,598 | 901,378 |
Wealth Management | Aggregated individually immaterial business combinations | ||
Disclosure of detailed information about business combination [line items] | ||
Cash and cash equivalents | 37,523 | 19,578 |
Client and trust funds on deposit | 450,932 | |
Accounts receivable and prepaid expenses | 51,868 | 6,398 |
Capital assets | 11,044 | 1,390 |
Right-of-use assets | 57,494 | 14,724 |
Deferred tax | (6,585) | (4,219) |
Intangibles | 741,668 | 393,744 |
Other assets | 874 | 344 |
Accounts payable and accrued liabilities | (104,514) | (18,245) |
Clients and trust funds payable | (450,932) | |
Long-term debt | (236,964) | |
Income taxes payable | (312) | |
Lease liabilities | (57,494) | (15,545) |
Fair value of identifiable net assets | 494,914 | 397,857 |
Non-controlling interest | 10,722 | 35,222 |
Acquisition date fair value of initial interest | 0 | |
Goodwill on acquisition | 1,198,522 | 528,557 |
Total acquired cost | 1,704,158 | 891,192 |
Consideration | ||
Cash consideration | 968,817 | 537,430 |
Share consideration | 62,737 | 35,434 |
Provision for other liabilities | 672,604 | 318,328 |
Total consideration | 1,704,158 | 891,192 |
Asset Management | Aggregated individually immaterial business combinations | ||
Disclosure of detailed information about business combination [line items] | ||
Cash and cash equivalents | 145 | 1,736 |
Client and trust funds on deposit | 0 | |
Accounts receivable and prepaid expenses | 292 | 331 |
Capital assets | 68 | 5 |
Right-of-use assets | 0 | 0 |
Deferred tax | (1,344) | 6,896 |
Intangibles | 5,041 | 1,753 |
Other assets | 24 | 0 |
Accounts payable and accrued liabilities | (233) | (1,298) |
Clients and trust funds payable | 0 | |
Long-term debt | 0 | |
Income taxes payable | 0 | |
Lease liabilities | 0 | 0 |
Fair value of identifiable net assets | 3,993 | 9,423 |
Non-controlling interest | 0 | 0 |
Acquisition date fair value of initial interest | (2,016) | |
Goodwill on acquisition | 2,463 | 763 |
Total acquired cost | 4,440 | 10,186 |
Consideration | ||
Cash consideration | 3,440 | 5,500 |
Share consideration | 1,000 | 0 |
Provision for other liabilities | 0 | 4,686 |
Total consideration | $ 4,440 | $ 10,186 |
CAPITAL ASSETS (Details)
CAPITAL ASSETS (Details) - CAD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Reconciliation of changes in property, plant and equipment [abstract] | ||
Capital assets, beginning balance | $ 46,978 | $ 45,954 |
Depreciation | 13,212 | 12,295 |
Capital assets, ending balance | 52,596 | 46,978 |
Cost | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Capital assets, beginning balance | 138,467 | 126,990 |
Acquired | 11,112 | 1,395 |
Additions | 7,798 | 11,990 |
Retired | (9,444) | (1,739) |
Translation | 52 | (169) |
Capital assets, ending balance | 147,985 | 138,467 |
Accumulated depreciation | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Capital assets, beginning balance | (91,489) | (81,036) |
Depreciation | 13,212 | 12,295 |
Retired | 9,239 | 1,739 |
Translation | 73 | 103 |
Capital assets, ending balance | (95,389) | (91,489) |
Computer hardware | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Capital assets, beginning balance | 8,128 | 4,783 |
Capital assets, ending balance | 9,526 | 8,128 |
Computer hardware | Cost | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Capital assets, beginning balance | 24,514 | 19,203 |
Acquired | 1,038 | 468 |
Additions | 4,648 | 6,687 |
Retired | (8,871) | (1,739) |
Translation | (10) | (105) |
Capital assets, ending balance | 21,319 | 24,514 |
Computer hardware | Accumulated depreciation | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Capital assets, beginning balance | (16,386) | (14,420) |
Depreciation | 4,209 | 3,756 |
Retired | 8,762 | 1,739 |
Translation | 40 | 51 |
Capital assets, ending balance | (11,793) | (16,386) |
Office equipment | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Capital assets, beginning balance | 4,870 | 4,599 |
Capital assets, ending balance | 5,798 | 4,870 |
Office equipment | Cost | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Capital assets, beginning balance | 22,216 | 20,342 |
Acquired | 1,982 | 748 |
Additions | 986 | 1,172 |
Retired | (220) | 0 |
Translation | (5) | (46) |
Capital assets, ending balance | 24,959 | 22,216 |
Office equipment | Accumulated depreciation | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Capital assets, beginning balance | (17,346) | (15,743) |
Depreciation | 1,956 | 1,644 |
Retired | 143 | 0 |
Translation | (2) | 41 |
Capital assets, ending balance | (19,161) | (17,346) |
Leasehold improvements | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Capital assets, beginning balance | 33,980 | 36,572 |
Capital assets, ending balance | 37,272 | 33,980 |
Leasehold improvements | Cost | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Capital assets, beginning balance | 91,737 | 87,445 |
Acquired | 8,092 | 179 |
Additions | 2,164 | 4,131 |
Retired | (353) | 0 |
Translation | 67 | (18) |
Capital assets, ending balance | 101,707 | 91,737 |
Leasehold improvements | Accumulated depreciation | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Capital assets, beginning balance | (57,757) | (50,873) |
Depreciation | 7,047 | 6,895 |
Retired | 334 | 0 |
Translation | 35 | 11 |
Capital assets, ending balance | $ (64,435) | $ (57,757) |
INTANGIBLES - Schedule of intan
INTANGIBLES - Schedule of intangible assets (Details) - CAD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Reconciliation of changes in intangible assets and goodwill [abstract] | ||
Intangible assets and goodwill, beginning balance | $ 4,290,998 | $ 3,388,482 |
Amortization of intangibles | 66,137 | 19,317 |
Intangible assets and goodwill, ending balance | 6,185,237 | 4,290,998 |
Fund management contracts indefinite-life | ||
Reconciliation of changes in intangible assets and goodwill [abstract] | ||
Intangible assets and goodwill, beginning balance | 1,778,901 | 1,779,957 |
Intangible assets and goodwill, ending balance | 1,802,667 | 1,778,901 |
Cost | ||
Reconciliation of changes in intangible assets and goodwill [abstract] | ||
Intangible assets and goodwill, beginning balance | 4,396,869 | 3,475,064 |
Acquired | 1,949,213 | 924,983 |
Additions | 12,420 | 17,132 |
Retired | (555) | |
Translation | 566 | (20,310) |
Intangible assets and goodwill, ending balance | 6,358,513 | 4,396,869 |
Cost | Fund management contracts indefinite-life | ||
Reconciliation of changes in intangible assets and goodwill [abstract] | ||
Intangible assets and goodwill, beginning balance | 1,778,901 | 1,779,957 |
Acquired | 27,807 | 1,753 |
Additions | 0 | 0 |
Retired | 0 | |
Translation | (4,041) | (2,809) |
Intangible assets and goodwill, ending balance | 1,802,667 | 1,778,901 |
Accumulated depreciation | ||
Reconciliation of changes in intangible assets and goodwill [abstract] | ||
Intangible assets and goodwill, beginning balance | (105,871) | (86,582) |
Acquired | (1,519) | (166) |
Amortization of intangibles | 66,137 | 19,317 |
Retired | 538 | |
Translation | (287) | 194 |
Intangible assets and goodwill, ending balance | (173,276) | (105,871) |
Accumulated depreciation | Fund management contracts indefinite-life | ||
Reconciliation of changes in intangible assets and goodwill [abstract] | ||
Intangible assets and goodwill, beginning balance | 0 | 0 |
Acquired | 0 | |
Amortization of intangibles | 0 | 0 |
Retired | 0 | |
Translation | 0 | 0 |
Intangible assets and goodwill, ending balance | 0 | 0 |
Goodwill | ||
Reconciliation of changes in intangible assets and goodwill [abstract] | ||
Intangible assets and goodwill, beginning balance | 2,053,672 | 1,531,273 |
Intangible assets and goodwill, ending balance | 3,255,941 | 2,053,672 |
Goodwill | Cost | ||
Reconciliation of changes in intangible assets and goodwill [abstract] | ||
Intangible assets and goodwill, beginning balance | 2,053,672 | 1,531,273 |
Acquired | 1,200,985 | 529,320 |
Additions | 0 | 0 |
Retired | 0 | |
Translation | 1,284 | (6,921) |
Intangible assets and goodwill, ending balance | 3,255,941 | 2,053,672 |
Goodwill | Accumulated depreciation | ||
Reconciliation of changes in intangible assets and goodwill [abstract] | ||
Intangible assets and goodwill, beginning balance | 0 | 0 |
Acquired | 0 | 0 |
Amortization of intangibles | 0 | 0 |
Retired | 0 | |
Translation | 0 | 0 |
Intangible assets and goodwill, ending balance | 0 | 0 |
Fund administration contracts | ||
Reconciliation of changes in intangible assets and goodwill [abstract] | ||
Intangible assets and goodwill, beginning balance | 397,129 | 23,779 |
Intangible assets and goodwill, ending balance | $ 1,060,220 | 397,129 |
Fund administration contracts | Bottom of range | ||
Reconciliation of changes in intangible assets and goodwill [abstract] | ||
Remaining term | 6 years 10 months 24 days | |
Fund administration contracts | Top of range | ||
Reconciliation of changes in intangible assets and goodwill [abstract] | ||
Remaining term | 12 years | |
Fund administration contracts | Cost | ||
Reconciliation of changes in intangible assets and goodwill [abstract] | ||
Intangible assets and goodwill, beginning balance | $ 431,965 | 49,500 |
Acquired | 713,490 | 392,904 |
Additions | 0 | 0 |
Retired | 0 | |
Translation | 3,526 | (10,439) |
Intangible assets and goodwill, ending balance | 1,148,981 | 431,965 |
Fund administration contracts | Accumulated depreciation | ||
Reconciliation of changes in intangible assets and goodwill [abstract] | ||
Intangible assets and goodwill, beginning balance | (34,836) | (25,721) |
Acquired | 0 | 0 |
Amortization of intangibles | 53,541 | 9,325 |
Retired | 0 | |
Translation | (384) | 210 |
Intangible assets and goodwill, ending balance | (88,761) | (34,836) |
Fund management contracts finite-life | ||
Reconciliation of changes in intangible assets and goodwill [abstract] | ||
Intangible assets and goodwill, beginning balance | 16,592 | 18,761 |
Intangible assets and goodwill, ending balance | $ 19,220 | 16,592 |
Fund management contracts finite-life | Bottom of range | ||
Reconciliation of changes in intangible assets and goodwill [abstract] | ||
Remaining term | 5 years 3 months 18 days | |
Fund management contracts finite-life | Top of range | ||
Reconciliation of changes in intangible assets and goodwill [abstract] | ||
Remaining term | 11 years 10 months 24 days | |
Fund management contracts finite-life | Cost | ||
Reconciliation of changes in intangible assets and goodwill [abstract] | ||
Intangible assets and goodwill, beginning balance | $ 50,045 | 50,157 |
Acquired | 5,041 | 0 |
Additions | 0 | 0 |
Retired | 0 | |
Translation | (189) | (112) |
Intangible assets and goodwill, ending balance | 54,897 | 50,045 |
Fund management contracts finite-life | Accumulated depreciation | ||
Reconciliation of changes in intangible assets and goodwill [abstract] | ||
Intangible assets and goodwill, beginning balance | (33,453) | (31,396) |
Acquired | 0 | 0 |
Amortization of intangibles | 2,307 | 2,037 |
Retired | 0 | |
Translation | 83 | (20) |
Intangible assets and goodwill, ending balance | (35,677) | (33,453) |
Other intangibles | ||
Reconciliation of changes in intangible assets and goodwill [abstract] | ||
Intangible assets and goodwill, beginning balance | 44,704 | 34,712 |
Intangible assets and goodwill, ending balance | $ 47,189 | 44,704 |
Other intangibles | Bottom of range | ||
Reconciliation of changes in intangible assets and goodwill [abstract] | ||
Remaining term | 1 month 6 days | |
Other intangibles | Top of range | ||
Reconciliation of changes in intangible assets and goodwill [abstract] | ||
Remaining term | 7 years 9 months 18 days | |
Other intangibles | Cost | ||
Reconciliation of changes in intangible assets and goodwill [abstract] | ||
Intangible assets and goodwill, beginning balance | $ 82,286 | 64,177 |
Acquired | 1,890 | 1,006 |
Additions | 12,420 | 17,132 |
Retired | (555) | |
Translation | (14) | (29) |
Intangible assets and goodwill, ending balance | 96,027 | 82,286 |
Other intangibles | Accumulated depreciation | ||
Reconciliation of changes in intangible assets and goodwill [abstract] | ||
Intangible assets and goodwill, beginning balance | (37,582) | (29,465) |
Acquired | (1,519) | (166) |
Amortization of intangibles | 10,289 | 7,955 |
Retired | 538 | |
Translation | 14 | 4 |
Intangible assets and goodwill, ending balance | $ (48,838) | $ (37,582) |
INTANGIBLES - Narrative (Detail
INTANGIBLES - Narrative (Details) | 12 Months Ended | ||
Dec. 31, 2021CAD ($)cash-generatingUnit | Dec. 31, 2020CAD ($) | Dec. 31, 2019CAD ($) | |
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||
Number of cash-generating units | cash-generatingUnit | 3 | ||
Goodwill | $ 3,255,941,000 | $ 2,053,672,000 | |
Period over which management has projected cash flows | 5 years | ||
Period over which management has projected growth strategies | 5 years | ||
Period over which management has projected sales | 3 years | ||
Period over which management has projected average assets | 5 years | ||
Long-term growth rate | 2.00% | 2.00% | |
Bottom of range | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||
Discount rate | 12.00% | 10.10% | |
Top of range | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||
Discount rate | 13.00% | 14.94% | |
Asset Management | Operating segments | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||
Goodwill | $ 1,312,543,000 | $ 1,311,873,000 | |
Asset Management | Fund management contracts indefinite-life | Operating segments | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||
Intangible assets | 1,774,050,000 | 1,778,901,000 | |
Wealth Management | Operating segments | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||
Goodwill | 1,943,398,000 | 741,799,000 | |
Wealth Management | Operating segments | Canada | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||
Goodwill | 308,553,000 | 254,276,000 | |
Wealth Management | Operating segments | United States | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||
Goodwill | 1,634,845,000 | $ 487,523,000 | |
Wealth Management | Fund management contracts indefinite-life | Operating segments | United States | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||
Intangible assets | $ 28,617,000 | $ 0 |
OTHER ASSETS, INCOME AND EXPE_3
OTHER ASSETS, INCOME AND EXPENSE - Schedule of other assets (Details) - CAD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Subclassifications of assets, liabilities and equities [abstract] | ||
Long-term investments | $ 48,560 | $ 23,925 |
Investments accounted for using the equity method | 258,408 | 40,266 |
Advisor and employee loans | 36,422 | 36,470 |
Other related party loans | 20,361 | 9,072 |
Other | 19,436 | 15,009 |
Total other assets | $ 383,187 | $ 124,742 |
OTHER ASSETS, INCOME AND EXPE_4
OTHER ASSETS, INCOME AND EXPENSE - Narrative (Details) - CAD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Disclosure of financial assets [line items] | ||
Investments accounted for using the equity method | $ 258,408,000 | $ 40,266,000 |
Share of profit (loss) of associates using equity method | 2,756,000 | 197,000 |
Advisor loans | 28,958,000 | 32,774,000 |
Employee loans | 757,000 | 757,000 |
Employee loans, shares held as collateral | 851,000 | 918,000 |
Shareholder loans | 6,707,000 | 2,938,000 |
Investment income | 40,283,000 | 11,191,000 |
Foreign exchange gain (loss) | (18,766,000) | 7,463,000 |
Change in fair value, expense, acquisition liabilities | 149,905,000 | 0 |
Additions to other expense, legal and severance | 23,478,000 | 56,277,000 |
Loss on repurchases of long-term debt | 24,920,000 | 2,328,000 |
Legal, severance and other provision | ||
Disclosure of financial assets [line items] | ||
Additions to other expense, legal and severance | $ 23,478,000 | $ 56,277,000 |
Bottom of range | ||
Disclosure of financial assets [line items] | ||
Contractual period for forgiveness of loans | 3 years | |
Top of range | ||
Disclosure of financial assets [line items] | ||
Contractual period for forgiveness of loans | 7 years |
LONG-TERM DEBT - Schedule of lo
LONG-TERM DEBT - Schedule of long-term debt (Details) $ in Thousands, $ in Thousands | Dec. 31, 2021CAD ($) | Dec. 31, 2021USD ($) | Jun. 07, 2021CAD ($) | Jun. 07, 2021USD ($) | Jan. 19, 2021CAD ($) | Jan. 19, 2021USD ($) | Dec. 31, 2020CAD ($) | Dec. 17, 2020CAD ($) | Dec. 17, 2020USD ($) | May 26, 2020CAD ($) |
Disclosure of detailed information about borrowings [line items] | ||||||||||
Long-term debt | $ 3,776,038 | $ 2,456,116 | ||||||||
Current portion of long-term debt | 444,486 | 203,805 | ||||||||
Credit facility and loans payable | ||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||
Long-term debt | 444,486 | 0 | ||||||||
Bankers’ acceptances | ||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||
Long-term debt | 297,500 | 0 | ||||||||
Fiduciary Network, LLC | ||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||
Long-term debt | 146,986 | 0 | ||||||||
Debentures | ||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||
Long-term debt | 3,331,552 | 2,456,116 | ||||||||
2021 Debentures | ||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||
Debenture principal amount | $ 200,000 | |||||||||
Interest rate | 2.775% | 2.775% | ||||||||
Long-term debt | $ 0 | 203,805 | ||||||||
2023 Debentures | ||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||
Debenture principal amount | $ 325,000 | |||||||||
Interest rate | 3.52% | 3.52% | ||||||||
Long-term debt | $ 0 | 323,944 | ||||||||
2024 Debentures | ||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||
Debenture principal amount | $ 301,000 | |||||||||
Interest rate | 3.215% | 3.215% | ||||||||
Long-term debt | $ 300,257 | 348,454 | ||||||||
2025 Debentures | ||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||
Debenture principal amount | $ 450,000 | $ 450,000 | ||||||||
Interest rate | 3.759% | 3.759% | ||||||||
Long-term debt | $ 448,278 | 447,829 | ||||||||
2027 Debentures | ||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||
Debenture principal amount | $ 250,000 | |||||||||
Interest rate | 3.904% | 3.904% | ||||||||
Long-term debt | $ 249,032 | 248,891 | ||||||||
2030 Notes | ||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||
Debenture principal amount | $ 960,000 | $ 331,147 | $ 260,000 | $ 891,175 | $ 700,000 | |||||
Interest rate | 3.20% | 3.20% | 3.20% | 3.20% | ||||||
Long-term debt | $ 1,207,689 | 883,193 | ||||||||
2051 Notes | ||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||
Debenture principal amount | $ 900,000 | $ 1,087,245 | $ 900,000 | |||||||
Interest rate | 4.10% | 4.10% | 4.10% | 4.10% | ||||||
Long-term debt | $ 1,126,296 | $ 0 |
LONG-TERM DEBT - Narrative (Det
LONG-TERM DEBT - Narrative (Details) $ in Thousands | Dec. 31, 2021CAD ($)bank | Dec. 31, 2021USD ($) | Dec. 11, 2021CAD ($) | Dec. 11, 2021USD ($) | Apr. 30, 2021CAD ($) | Apr. 30, 2021USD ($) | Feb. 19, 2021CAD ($) | Jan. 18, 2021CAD ($) | Dec. 07, 2020CAD ($) | Dec. 31, 2021CAD ($)bank | Dec. 31, 2020CAD ($) | Jun. 30, 2022 | Dec. 31, 2021USD ($)bank | Dec. 30, 2021CAD ($) | Dec. 30, 2021USD ($) | Aug. 31, 2021CAD ($) | Aug. 31, 2021USD ($) | Jun. 07, 2021CAD ($) | Jun. 07, 2021USD ($) | Apr. 30, 2021USD ($) | Jan. 19, 2021CAD ($) | Jan. 19, 2021USD ($) | Dec. 17, 2020CAD ($) | Dec. 17, 2020USD ($) | May 26, 2020CAD ($) |
Disclosure of detailed information about borrowings [line items] | |||||||||||||||||||||||||
Repurchase of long-term debt | $ 50,732,000 | $ 55,985,000 | |||||||||||||||||||||||
Loss on repurchases of long-term debt | 24,920,000 | 2,328,000 | |||||||||||||||||||||||
Repayment of long-term debt | 640,419,000 | 569,015,000 | |||||||||||||||||||||||
Amortization of debenture transaction costs | 2,716,000 | 2,054,000 | |||||||||||||||||||||||
Interest paid | $ 102,493,000 | 59,511,000 | |||||||||||||||||||||||
Bottom of range | |||||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||||||||||||||
Redemption, prior notice period | 30 days | ||||||||||||||||||||||||
Top of range | |||||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||||||||||||||
Redemption, prior notice period | 60 days | ||||||||||||||||||||||||
Debentures | |||||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||||||||||||||
Amortization of debenture transaction costs | $ 2,716,000 | 2,054,000 | |||||||||||||||||||||||
Debentures | Event of change in control and rating lowered | |||||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||||||||||||||
Redemption price, percent of outstanding principal | 101.00% | ||||||||||||||||||||||||
Revolving credit facility | |||||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||||||||||||||
Maximum borrowing capacity | $ 700,000,000 | $ 700,000,000 | |||||||||||||||||||||||
Number of banks | bank | 3 | 3 | 3 | ||||||||||||||||||||||
Borrowings term | 3 years | ||||||||||||||||||||||||
Letter of credit, undrawn portion fee | 1.20% | ||||||||||||||||||||||||
Ratio of funded debt to annualized EBITDA | 3.5 | 3.5 | 3.5 | ||||||||||||||||||||||
Increase to ratio of funded debt to annualized EBITDA | 0.5 | 0.5 | 0.5 | ||||||||||||||||||||||
Minimum assets under management on rolling 30-day average | $ 85,000,000,000 | $ 85,000,000,000 | |||||||||||||||||||||||
Acquisition consideration threshold, within any four quarters | $ 200,000,000 | $ 200,000,000 | |||||||||||||||||||||||
Ratio of funded debt to annualized EBITDA, next two quarters | 4 | 4 | 4 | ||||||||||||||||||||||
Revolving credit facility | Change in funded debt to annualized EBITDA ratio covenant | |||||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||||||||||||||
Ratio of funded debt to annualized EBITDA | 3 | ||||||||||||||||||||||||
Ratio of funded debt to annualized EBITDA, next two quarters | 3.5 | ||||||||||||||||||||||||
Revolving credit facility | Prime Rate | |||||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||||||||||||||
Adjustment to interest rate basis | 0.20% | 0.20% | 0.20% | ||||||||||||||||||||||
Revolving credit facility | Bankers Acceptance Rate | |||||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||||||||||||||
Adjustment to interest rate basis | 1.20% | 1.20% | 1.20% | ||||||||||||||||||||||
Revolving credit facility | Federal Funds Effective Rate | |||||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||||||||||||||
Adjustment to interest rate basis | 1.20% | 1.20% | 1.20% | ||||||||||||||||||||||
Revolving credit facility | LIBOR | |||||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||||||||||||||
Adjustment to interest rate basis | 1.20% | 1.20% | 1.20% | ||||||||||||||||||||||
2021 Debentures | |||||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||||||||||||||
Repurchase of long-term debt | $ 200,000,000 | ||||||||||||||||||||||||
Average price repurchased | 101.903 | ||||||||||||||||||||||||
Loss on repurchases of long-term debt | 3,805,000 | ||||||||||||||||||||||||
Gain on termination of interest rate swap | $ 1,865,000 | ||||||||||||||||||||||||
Debenture principal amount | $ 200,000,000 | $ 200,000,000 | |||||||||||||||||||||||
Interest rate | 2.775% | 2.775% | 2.775% | ||||||||||||||||||||||
Interest paid | $ 0 | 5,409,000 | |||||||||||||||||||||||
2023 Debentures | |||||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||||||||||||||
Repurchase of long-term debt | $ 325,000,000 | ||||||||||||||||||||||||
Average price repurchased | 107.002 | ||||||||||||||||||||||||
Loss on repurchases of long-term debt | $ 22,755,000 | ||||||||||||||||||||||||
Debenture principal amount | $ 325,000,000 | $ 325,000,000 | |||||||||||||||||||||||
Interest rate | 3.52% | 3.52% | 3.52% | ||||||||||||||||||||||
Interest paid | $ 1,486,000 | 11,440,000 | |||||||||||||||||||||||
2024 Debentures | |||||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||||||||||||||
Repurchase of long-term debt | 48,567,000 | ||||||||||||||||||||||||
Average price repurchased | 104.458 | ||||||||||||||||||||||||
Loss on repurchases of long-term debt | 2,165,000 | ||||||||||||||||||||||||
Debenture principal amount | $ 301,000,000 | $ 301,000,000 | |||||||||||||||||||||||
Interest rate | 3.215% | 3.215% | 3.215% | ||||||||||||||||||||||
Interest paid | $ 10,106,000 | 11,384,000 | |||||||||||||||||||||||
2024 Debentures | Government of Canada Yield | |||||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||||||||||||||
Redemption, percentage above notional amount | 0.445% | ||||||||||||||||||||||||
2020 Debentures | |||||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||||||||||||||
Repurchase of long-term debt | 55,985,000 | ||||||||||||||||||||||||
Average price repurchased | 100.693 | ||||||||||||||||||||||||
Loss on repurchases of long-term debt | 388,000 | ||||||||||||||||||||||||
Repayment of long-term debt | $ 394,015,000 | ||||||||||||||||||||||||
Debenture principal amount | $ 450,000,000 | $ 450,000,000 | |||||||||||||||||||||||
Interest rate | 2.645% | 2.645% | 2.645% | ||||||||||||||||||||||
Interest paid | $ 0 | 10,305,000 | |||||||||||||||||||||||
2051 Notes | |||||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||||||||||||||
Debenture principal amount | $ 900,000 | $ 1,087,245,000 | $ 900,000 | ||||||||||||||||||||||
Interest rate | 4.10% | 4.10% | 4.10% | 4.10% | 4.10% | ||||||||||||||||||||
Redemption, percentage of notional amount redeemed | 100.00% | ||||||||||||||||||||||||
Interest paid | $ 26,129,000 | 0 | |||||||||||||||||||||||
2051 Notes | Treasury Rate | |||||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||||||||||||||
Redemption, percentage above notional amount | 0.30% | ||||||||||||||||||||||||
2030 Notes | |||||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||||||||||||||
Debenture principal amount | $ 960,000 | $ 331,147,000 | $ 260,000 | $ 891,175,000 | $ 700,000 | ||||||||||||||||||||
Interest rate | 3.20% | 3.20% | 3.20% | 3.20% | 3.20% | ||||||||||||||||||||
Redemption, percentage of notional amount redeemed | 100.00% | ||||||||||||||||||||||||
Interest paid | $ 38,096,000 | 1,115,000 | |||||||||||||||||||||||
2030 Notes | Event of change affecting Canadian withholding taxes | |||||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||||||||||||||
Redemption price, percent of outstanding principal | 100.00% | ||||||||||||||||||||||||
2030 Notes | Treasury Rate | |||||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||||||||||||||
Redemption, percentage above notional amount | 0.35% | ||||||||||||||||||||||||
2025 Debentures | |||||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||||||||||||||
Debenture principal amount | $ 450,000,000 | $ 450,000,000 | $ 450,000,000 | ||||||||||||||||||||||
Interest rate | 3.759% | 3.759% | 3.759% | ||||||||||||||||||||||
Interest paid | $ 16,916,000 | 10,098,000 | |||||||||||||||||||||||
2025 Debentures | Government of Canada Yield | |||||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||||||||||||||
Redemption, percentage above notional amount | 0.84% | ||||||||||||||||||||||||
2027 Debentures | |||||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||||||||||||||
Debenture principal amount | $ 250,000,000 | $ 250,000,000 | |||||||||||||||||||||||
Interest rate | 3.904% | 3.904% | 3.904% | ||||||||||||||||||||||
Interest paid | $ 9,760,000 | $ 9,760,000 | |||||||||||||||||||||||
2027 Debentures | Government of Canada Yield | |||||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||||||||||||||
Redemption, percentage above notional amount | 0.445% | ||||||||||||||||||||||||
Fiduciary Network, LLC | Regent | |||||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||||||||||||||
Debenture principal amount | $ 146,986,000 | $ 116,200 | |||||||||||||||||||||||
Borrowings, quarterly interest amount | $ 1,258 | ||||||||||||||||||||||||
Fiduciary Network, LLC | Brightworth | |||||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||||||||||||||
Repayment of long-term debt | $ 67,766,000 | $ 53,502 | $ 16,514,000 | $ 13,435 | |||||||||||||||||||||
Debenture principal amount | $ 82,279,000 | $ 66,937 | |||||||||||||||||||||||
Interest paid | $ 947,000 | $ 737 | |||||||||||||||||||||||
Fiduciary Network, LLC | Radnor | |||||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | |||||||||||||||||||||||||
Repayment of long-term debt | $ 6,462,000 | $ 5,108 | |||||||||||||||||||||||
Debenture principal amount | $ 6,445,000 | $ 5,108 | |||||||||||||||||||||||
Interest paid | $ 43,000 | $ 34 |
LONG-TERM DEBT - Schedule of in
LONG-TERM DEBT - Schedule of interest paid (Details) $ in Thousands, $ in Thousands | 12 Months Ended | |||||||||
Dec. 31, 2021CAD ($) | Dec. 31, 2020CAD ($) | Dec. 31, 2021USD ($) | Jun. 07, 2021CAD ($) | Jun. 07, 2021USD ($) | Jan. 19, 2021CAD ($) | Jan. 19, 2021USD ($) | Dec. 17, 2020CAD ($) | Dec. 17, 2020USD ($) | May 26, 2020CAD ($) | |
Disclosure of detailed information about borrowings [line items] | ||||||||||
Interest paid | $ 102,493 | $ 59,511 | ||||||||
2020 Debentures | ||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||
Debenture principal amount | $ 450,000 | |||||||||
Interest rate | 2.645% | 2.645% | ||||||||
Interest paid | $ 0 | 10,305 | ||||||||
2021 Debentures | ||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||
Debenture principal amount | $ 200,000 | |||||||||
Interest rate | 2.775% | 2.775% | ||||||||
Interest paid | $ 0 | 5,409 | ||||||||
2023 Debentures | ||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||
Debenture principal amount | $ 325,000 | |||||||||
Interest rate | 3.52% | 3.52% | ||||||||
Interest paid | $ 1,486 | 11,440 | ||||||||
2024 Debentures | ||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||
Debenture principal amount | $ 301,000 | |||||||||
Interest rate | 3.215% | 3.215% | ||||||||
Interest paid | $ 10,106 | 11,384 | ||||||||
2025 Debentures | ||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||
Debenture principal amount | $ 450,000 | $ 450,000 | ||||||||
Interest rate | 3.759% | 3.759% | ||||||||
Interest paid | $ 16,916 | 10,098 | ||||||||
2027 Debentures | ||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||
Debenture principal amount | $ 250,000 | |||||||||
Interest rate | 3.904% | 3.904% | ||||||||
Interest paid | $ 9,760 | 9,760 | ||||||||
2030 Notes | ||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||
Debenture principal amount | $ 960,000 | $ 331,147 | $ 260,000 | $ 891,175 | $ 700,000 | |||||
Interest rate | 3.20% | 3.20% | 3.20% | 3.20% | ||||||
Interest paid | $ 38,096 | 1,115 | ||||||||
2051 Notes | ||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||
Debenture principal amount | $ 900,000 | $ 1,087,245 | $ 900,000 | |||||||
Interest rate | 4.10% | 4.10% | 4.10% | 4.10% | ||||||
Interest paid | $ 26,129 | $ 0 |
PROVISIONS AND OTHER FINANCIA_3
PROVISIONS AND OTHER FINANCIAL LIABILITIES - Schedule of movement in provisions and other financial liabilities (Details) - CAD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Provisions | ||
Provisions, beginning of period | $ 46,181 | $ 25,563 |
Additions | 23,478 | 56,277 |
Amounts used | (28,390) | (34,869) |
Amounts reversed | (10) | (790) |
Fair value change - acquisition liabilities | 0 | 0 |
Translation - acquisition liabilities | 0 | 0 |
Provisions, end of period | 41,259 | 46,181 |
Current portion of provisions | 6,942 | 45,298 |
Acquisition liabilities | ||
Acquisition liabilities, beginning of period | 337,371 | 7,573 |
Additions | 743,426 | 334,616 |
Amounts used | (324,272) | (701) |
Amounts reversed | (1,842) | 0 |
Fair value change - acquisition liabilities | 157,102 | 0 |
Translation - acquisition liabilities | (971) | (4,117) |
Acquisition liabilities, end of period | 910,814 | 337,371 |
Current portion of acquisition liabilities | $ 565,490 | $ 230,412 |
PROVISIONS AND OTHER FINANCIA_4
PROVISIONS AND OTHER FINANCIAL LIABILITIES - Summary of business acquisition provisions (Details) - CAD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Other provisions [abstract] | |||
Deferred consideration | $ 136,053 | $ 96,855 | |
Contingent consideration | 346,894 | 131,122 | |
Put option | 427,867 | 109,394 | |
Acquisition Liabilities | $ 910,814 | $ 337,371 | $ 7,573 |
PROVISIONS AND OTHER FINANCIA_5
PROVISIONS AND OTHER FINANCIAL LIABILITIES - Narrative (Details) - CAD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Disclosure of other provisions [line items] | |||
Contingent consideration, compensation expense | $ 7,198 | $ 0 | |
Contingent consideration | 346,894 | 131,122 | |
Cash consideration | 308,907 | ||
Share consideration | 15,179 | ||
Additions | 23,478 | 56,277 | |
Provisions | $ 41,259 | 46,181 | $ 25,563 |
Top of range | |||
Disclosure of other provisions [line items] | |||
Deferred consideration, settlement period | 270 days | ||
Bottom of range | |||
Disclosure of other provisions [line items] | |||
Deferred consideration, settlement period | 90 days | ||
Legal, severance and other provision | |||
Disclosure of other provisions [line items] | |||
Additions | $ 23,478 | 56,277 | |
Provisions | 41,259 | 46,181 | |
Earnout arrangements with no maximum payout | |||
Disclosure of other provisions [line items] | |||
Contingent consideration | 69,503 | 23,108 | |
Earnout arrangements with maximum payout | |||
Disclosure of other provisions [line items] | |||
Contingent consideration | 277,391 | 108,014 | |
Contingent consideration, maximum potential payout | 715,105 | $ 219,667 | |
GSFM | |||
Disclosure of other provisions [line items] | |||
Purchase of shares to settle put option | $ 17,748 |
LEASES - Summary of right-of-us
LEASES - Summary of right-of-use assets and lease liabilities (Details) - CAD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Right-of-use assets | ||
Right-of-use assets, beginning balance | $ 50,620 | |
Additions, acquired & modifications | 106,094 | |
Depreciation of right-of-use assets | (14,756) | $ (9,848) |
Translation | 648 | |
Right-of-use assets, ending balance | 142,606 | 50,620 |
Lease liabilities | ||
Lease liabilities, beginning balance | 76,233 | |
Additions, acquired & modifications | 114,125 | |
Interest expense | 3,463 | |
Payments | (20,130) | |
Translation | 65 | |
Lease liabilities, ending balance | 173,756 | 76,233 |
Right-of-use assets, reclassifications out of leases | 8,229 | |
Property leases | ||
Right-of-use assets | ||
Right-of-use assets, beginning balance | 50,016 | |
Additions, acquired & modifications | 105,056 | |
Depreciation of right-of-use assets | (14,213) | |
Translation | 647 | |
Right-of-use assets, ending balance | 141,506 | 50,016 |
Equipment leases | ||
Right-of-use assets | ||
Right-of-use assets, beginning balance | 604 | |
Additions, acquired & modifications | 1,038 | |
Depreciation of right-of-use assets | (543) | |
Translation | 1 | |
Right-of-use assets, ending balance | $ 1,100 | $ 604 |
LEASES - Narrative (Details)
LEASES - Narrative (Details) - CAD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Leases [Abstract] | ||
Expenses from short-term leases | $ 462 | $ 355 |
Expense relating to leases of low-value assets | 324 | 29 |
Expense relating to variable lease payments | 12,153 | 12,724 |
Right-of-use assets, reclassifications out of leases | 8,229 | |
Sublease receivable | 8,211 | 1,995 |
Income from subleasing right-of-use assets | $ 289 | $ 89 |
SHARE CAPITAL - Summary of the
SHARE CAPITAL - Summary of the changes to share capital (Details) - CAD ($) shares in Thousands, $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Stated value | ||
Equity, beginning balance | $ 1,617,730 | $ 1,499,356 |
Issuance of share capital for equity-based plans, net of tax | 0 | 0 |
Shares repurchased, net of tax | (355,819) | (255,684) |
Equity, ending balance | $ 1,615,640 | $ 1,617,730 |
Share capital | ||
Number of shares | ||
Beginning balance (in shares) | 210,358 | 221,792 |
Issuance for acquisition of subsidiary, net of issuance costs (in shares) | 3,712 | 2,034 |
Issuance of share capital for equity-based plans, net of tax (in shares) | 799 | 522 |
Share repurchases, net of tax (in shares) | (17,447) | (13,990) |
Ending balance (in shares) | 197,422 | 210,358 |
Stated value | ||
Equity, beginning balance | $ 1,867,997 | $ 1,944,311 |
Issuance for acquisition of subsidiary, net of issuance costs | 78,916 | 35,434 |
Issuance of share capital for equity-based plans, net of tax | 10,825 | 8,488 |
Shares repurchased, net of tax | (147,585) | (120,236) |
Equity, ending balance | $ 1,810,153 | $ 1,867,997 |
SHARE CAPITAL - Narrative (Deta
SHARE CAPITAL - Narrative (Details) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2021CAD ($)shares$ / shares | Dec. 31, 2020CAD ($)shares$ / shares | |
Disclosure of classes of share capital [line items] | ||
Shares repurchased, net of tax | $ 355,819 | $ 255,684 |
Bottom of range | ||
Disclosure of classes of share capital [line items] | ||
Exercise price (in CAD per share) | $ / shares | $ 18.99 | |
Top of range | ||
Disclosure of classes of share capital [line items] | ||
Exercise price (in CAD per share) | $ / shares | $ 28.67 | |
Ordinary shares | ||
Disclosure of classes of share capital [line items] | ||
Shares repurchased, net of tax | $ 332,248 | 249,427 |
Restricted share units | ||
Disclosure of classes of share capital [line items] | ||
Shares repurchased, net of tax | 23,573 | 6,256 |
Shares repurchased, before tax | 32,071 | 8,512 |
Equity-based compensation expense | $ 21,715 | $ 10,447 |
Granted (in shares) | shares | 1,783,000 | 350,000 |
Issuance of share capital for equity-based plans, net of tax (in shares) | shares | 849,000 | 521,000 |
Employee share option | ||
Disclosure of classes of share capital [line items] | ||
Number of shares authorized for issuance, maximum | shares | 14,000,000 | |
Number of shares reserved for issuance | shares | 811,000 | 2,606,000 |
Vesting period | 5 years | |
Equity-based compensation expense | $ 290 | $ 210 |
Deferred share units | ||
Disclosure of classes of share capital [line items] | ||
Equity-based compensation expense | $ 730 | $ 51 |
Granted (in shares) | shares | 14,000 | 11,000 |
Issuance of share capital for equity-based plans, net of tax (in shares) | shares | 0 | 0 |
Liabilities from equity-based payment transactions | $ 1,245 | $ 515 |
Share capital | ||
Disclosure of classes of share capital [line items] | ||
Share repurchases, net of tax (in shares) | shares | 17,447,000 | 13,990,000 |
Shares repurchased, net of tax | $ 147,585 | $ 120,236 |
Issuance of share capital for equity-based plans, net of tax (in shares) | shares | 799,000 | 522,000 |
Share capital | Ordinary shares | ||
Disclosure of classes of share capital [line items] | ||
Share repurchases, net of tax (in shares) | shares | 15,692,000 | 13,615,000 |
Shares repurchased, average cost (in CAD per share) | $ / shares | $ 21.17 | $ 18.32 |
Share capital | Restricted share units | ||
Disclosure of classes of share capital [line items] | ||
Share repurchases, net of tax (in shares) | shares | 1,755,000 | 375,000 |
Shares repurchased, average cost (in CAD per share) | $ / shares | $ 18.27 | $ 22.70 |
Deficit | ||
Disclosure of classes of share capital [line items] | ||
Shares repurchased, net of tax | $ 208,234 | $ 135,448 |
Deficit | Ordinary shares | ||
Disclosure of classes of share capital [line items] | ||
Shares repurchased, net of tax | 191,760 | 130,216 |
Deficit | Restricted share units | ||
Disclosure of classes of share capital [line items] | ||
Shares repurchased, net of tax | $ 16,474 | $ 5,231 |
SHARE CAPITAL - Schedule of Cha
SHARE CAPITAL - Schedule of Changes in Share Option Plan (Details) shares in Thousands | 12 Months Ended | |
Dec. 31, 2021shares$ / shares | Dec. 31, 2020shares$ / shares | |
Number of Options [Abstract] | ||
Options outstanding, beginning of year (in shares) | shares | 2,606 | 5,584 |
Options exercisable, beginning of year (in shares) | shares | 2,020 | 4,758 |
Options exercised (in shares) | shares | (3) | |
Options cancelled (in shares) | shares | (1,792) | (2,978) |
Options outstanding, end of year (in shares) | shares | 811 | 2,606 |
Options exercisable, end of year (in shares) | shares | 274 | 2,020 |
Weighted Average Exercise Price [Abstract] | ||
Options outstanding, beginning of year (in CAD per share) | $ 26.38 | $ 29.63 |
Options exercisable, beginning of year (in CAD per share) | 28.44 | 31.26 |
Options exercised (in CAD per share) | 27.44 | |
Options cancelled (in CAD per share) | 28.41 | 34.28 |
Options outstanding, end of year (in CAD per share) | 21.88 | 26.38 |
Options exercisable, end of year (in CAD per share) | 27.53 | 28.44 |
Weighted average share price for share options exercised (in CAD per share) | $ 30.13 | $ 0 |
SHARE CAPITAL - Schedule of Opt
SHARE CAPITAL - Schedule of Options Outstanding and Exercisable (Details) shares in Thousands | 12 Months Ended | ||
Dec. 31, 2021shares$ / shares | Dec. 31, 2020shares | Dec. 31, 2019shares | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Number of options outstanding (in shares) | 811 | 2,606 | 5,584 |
Weighted average remaining contractual life | 4 years 10 months 24 days | ||
Number of options exercisable (in shares) | 274 | 2,020 | 4,758 |
Bottom of range | |||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Exercise price (in CAD per share) | $ / shares | $ 18.99 | ||
Top of range | |||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Exercise price (in CAD per share) | $ / shares | 28.67 | ||
18.99 | |||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Exercise price (in CAD per share) | $ / shares | $ 18.99 | ||
Number of options outstanding (in shares) | 537 | ||
Weighted average remaining contractual life | 7 years 2 months 12 days | ||
Number of options exercisable (in shares) | 0 | ||
27.44 | |||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Exercise price (in CAD per share) | $ / shares | $ 27.44 | ||
Number of options outstanding (in shares) | 254 | ||
Weighted average remaining contractual life | 2 months 12 days | ||
Number of options exercisable (in shares) | 254 | ||
28.67 | |||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Exercise price (in CAD per share) | $ / shares | $ 28.67 | ||
Number of options outstanding (in shares) | 20 | ||
Weighted average remaining contractual life | 1 year 2 months 12 days | ||
Number of options exercisable (in shares) | 20 |
SHARE CAPITAL - Summary of chan
SHARE CAPITAL - Summary of changes in RSU Plan (Details) - Restricted share units - shares shares in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Disclosure of classes of share capital [line items] | ||
Outstanding, beginning of year (in shares) | 504 | 657 |
Granted (in shares) | 1,783 | 350 |
Granted, dividends (in shares) | 58 | 36 |
Exercised (in shares) | (849) | (521) |
Forfeited (in shares) | (59) | (18) |
Outstanding, end of year (in shares) | 1,437 | 504 |
SHARE CAPITAL - Schedule of Bas
SHARE CAPITAL - Schedule of Basic and Diluted Earnings Per Share (Details) - CAD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Numerator: | ||
Net income attributable to shareholders | $ 409,328 | $ 475,978 |
Denominator: | ||
Weighted average number of common shares - basic | 201,628,000 | 214,092,000 |
Weighted average effect of dilutive stock options and RSU awards (in shares) | 838,000 | 1,527,000 |
Weighted average number of common shares - diluted | 202,466,000 | 215,619,000 |
Net earnings per common share attributable to shareholders | ||
Basic earnings per share attributable to shareholders (in CAD per share) | $ 2.03 | $ 2.22 |
Diluted earnings per share attributable to shareholders (in CAD per share) | $ 2.02 | $ 2.21 |
Employee share option | ||
Net earnings per common share attributable to shareholders | ||
Weighted average number of diluted common shares excluded from calculation | 274,000 | 2,606,000 |
SHARE CAPITAL - Disclosure Of M
SHARE CAPITAL - Disclosure Of Maximum Share Dilution (Details) - shares shares in Thousands | Jan. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Disclosure of classes of share capital [line items] | ||||
Number of options outstanding (in shares) | 811 | 2,606 | 5,584 | |
Potential ordinary share transactions | ||||
Disclosure of classes of share capital [line items] | ||||
Number of options outstanding (in shares) | 807 | |||
Maximum number of shares outstanding if all outstanding options were exercised and RSU awards vested | 199,663 | |||
Restricted share units | ||||
Disclosure of classes of share capital [line items] | ||||
RSU awards outstanding (in shares) | 1,437 | 504 | 657 | |
Restricted share units | Potential ordinary share transactions | ||||
Disclosure of classes of share capital [line items] | ||||
RSU awards outstanding (in shares) | 1,434 | |||
Share capital | ||||
Disclosure of classes of share capital [line items] | ||||
Number of shares outstanding | 197,422 | 210,358 | 221,792 | |
Share capital | Potential ordinary share transactions | ||||
Disclosure of classes of share capital [line items] | ||||
Number of shares outstanding | 197,422 |
DIVIDENDS (Details)
DIVIDENDS (Details) - CAD ($) $ / shares in Units, $ in Thousands | Oct. 15, 2021 | Jul. 15, 2021 | Apr. 15, 2021 | Jan. 15, 2021 | Oct. 15, 2020 | Jul. 15, 2020 | Apr. 15, 2020 | Jan. 15, 2020 | Dec. 31, 2021 | Dec. 31, 2020 |
Disclosure of dividends [Line Items] | ||||||||||
Dividends paid (in CAD per share) | $ 0.18 | $ 0.18 | $ 0.18 | $ 0.18 | $ 0.18 | $ 0.18 | $ 0.18 | $ 0.18 | ||
Dividends paid | $ 35,611 | $ 36,239 | $ 36,728 | $ 37,869 | $ 37,773 | $ 38,574 | $ 38,995 | $ 39,971 | $ 146,447 | $ 155,313 |
Dividends payable | $ 71,072 | $ 75,297 | ||||||||
Dividend, December 2021 | ||||||||||
Disclosure of dividends [Line Items] | ||||||||||
Dividends payable (in CAD per share) | $ 0.18 | |||||||||
Dividends payable | $ 35,536 | |||||||||
Dividend, March 2022 | ||||||||||
Disclosure of dividends [Line Items] | ||||||||||
Dividends payable (in CAD per share) | $ 0.18 | |||||||||
Dividends payable | $ 35,536 | |||||||||
Dividend, December 2020 | ||||||||||
Disclosure of dividends [Line Items] | ||||||||||
Dividends payable (in CAD per share) | $ 0.18 | |||||||||
Dividends payable | $ 37,649 | |||||||||
Dividend, March 2021 | ||||||||||
Disclosure of dividends [Line Items] | ||||||||||
Dividends payable (in CAD per share) | $ 0.18 | |||||||||
Dividends payable | $ 37,648 |
INCOME TAXES - Components of In
INCOME TAXES - Components of Income Tax Expense (Details) - CAD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Income Tax [Abstract] | ||
Current income tax expense | $ 217,896 | $ 171,637 |
Adjustments in respect of prior years | (1,685) | (2,714) |
Current income tax expense | 216,211 | 168,923 |
Origination and reversal of temporary differences (net) | (42,419) | (1,722) |
Deferred income tax expense | (42,419) | (1,722) |
Income tax expense reported in the consolidated statements of income | $ 173,792 | $ 167,201 |
INCOME TAXES - Reconciliation o
INCOME TAXES - Reconciliation of Statutory and Effective Income Tax Rates (Details) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Income Tax [Abstract] | ||
Combined Canadian federal and provincial income tax rate | 26.50% | 26.50% |
Recovery of prior years’ provisions for settled tax items | 0.10% | (0.50%) |
Other, net | 3.00% | 0.00% |
Income tax expense reported in the consolidated statements of income and comprehensive income | 29.60% | 26.00% |
INCOME TAXES - Deferred Tax Ass
INCOME TAXES - Deferred Tax Assets and Liabilities (Details) - CAD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Reconciliation of changes in deferred tax liability (asset) [abstract] | ||
Deferred tax liability (asset) at beginning of period | $ 462,889 | $ 464,841 |
Recognized in net income | (42,419) | (1,722) |
Business acquisition | 7,929 | (2,677) |
Recognized in equity and FX | (4,523) | 2,447 |
Deferred tax liability (asset) at end of period | 423,876 | 462,889 |
Fund contracts | ||
Reconciliation of changes in deferred tax liability (asset) [abstract] | ||
Deferred tax liability (asset) at beginning of period | 487,348 | 482,696 |
Recognized in net income | (26,901) | (1,197) |
Business acquisition | 8,095 | 4,188 |
Recognized in equity and FX | (1,517) | 1,661 |
Deferred tax liability (asset) at end of period | 467,025 | 487,348 |
Right-of-use assets | ||
Reconciliation of changes in deferred tax liability (asset) [abstract] | ||
Deferred tax liability (asset) at beginning of period | 12,904 | 11,866 |
Recognized in net income | 24,623 | 1,038 |
Business acquisition | 0 | 0 |
Recognized in equity and FX | 0 | 0 |
Deferred tax liability (asset) at end of period | 37,527 | 12,904 |
Equity-based compensation | ||
Reconciliation of changes in deferred tax liability (asset) [abstract] | ||
Deferred tax liability (asset) at beginning of period | (14,400) | (12,950) |
Recognized in net income | 531 | (1,982) |
Business acquisition | 0 | 0 |
Recognized in equity and FX | (2,784) | 532 |
Deferred tax liability (asset) at end of period | (16,653) | (14,400) |
Non-capital loss carryforwards | ||
Reconciliation of changes in deferred tax liability (asset) [abstract] | ||
Deferred tax liability (asset) at beginning of period | (7,341) | (5,116) |
Recognized in net income | (1,835) | 4,681 |
Business acquisition | 0 | (6,906) |
Recognized in equity and FX | 0 | 0 |
Deferred tax liability (asset) at end of period | (9,176) | (7,341) |
Provisions and other financial liabilities | ||
Reconciliation of changes in deferred tax liability (asset) [abstract] | ||
Deferred tax liability (asset) at beginning of period | (7,611) | (2,690) |
Recognized in net income | (4,859) | (4,921) |
Business acquisition | 0 | 0 |
Recognized in equity and FX | 0 | 0 |
Deferred tax liability (asset) at end of period | (12,470) | (7,611) |
Lease liabilities | ||
Reconciliation of changes in deferred tax liability (asset) [abstract] | ||
Deferred tax liability (asset) at beginning of period | (19,409) | (19,163) |
Recognized in net income | (26,523) | (246) |
Business acquisition | 0 | 0 |
Recognized in equity and FX | 0 | 0 |
Deferred tax liability (asset) at end of period | (45,932) | (19,409) |
Other | ||
Reconciliation of changes in deferred tax liability (asset) [abstract] | ||
Deferred tax liability (asset) at beginning of period | 11,398 | 10,198 |
Recognized in net income | (7,455) | 905 |
Business acquisition | (166) | 41 |
Recognized in equity and FX | (222) | 254 |
Deferred tax liability (asset) at end of period | $ 3,555 | $ 11,398 |
FINANCIAL INSTRUMENTS - Carryin
FINANCIAL INSTRUMENTS - Carrying amount of financial instruments (Details) - CAD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Disclosure of financial assets and liabilities [Line Items] | ||
Total financial assets | $ 1,898,373 | $ 1,865,714 |
Total financial liabilities | 6,352,757 | 4,184,842 |
Fair value through profit or loss | Provisions and other financial liabilities | ||
Disclosure of financial assets and liabilities [Line Items] | ||
Total financial liabilities | 774,761 | 240,516 |
Amortized cost | Provisions and other financial liabilities | ||
Disclosure of financial assets and liabilities [Line Items] | ||
Total financial liabilities | 177,312 | 143,036 |
Amortized cost | Accounts payable and accrued liabilities | ||
Disclosure of financial assets and liabilities [Line Items] | ||
Total financial liabilities | 351,495 | 308,797 |
Amortized cost | Dividends payable | ||
Disclosure of financial assets and liabilities [Line Items] | ||
Total financial liabilities | 71,072 | 75,297 |
Amortized cost | Client and trust funds payable | ||
Disclosure of financial assets and liabilities [Line Items] | ||
Total financial liabilities | 1,202,079 | 961,080 |
Amortized cost | Long-term debt | ||
Disclosure of financial assets and liabilities [Line Items] | ||
Total financial liabilities | 3,776,038 | 2,456,116 |
Fair value through profit or loss | Cash and cash equivalents | ||
Disclosure of financial assets and liabilities [Line Items] | ||
Total financial assets | 230,779 | 483,598 |
Fair value through profit or loss | Investments | ||
Disclosure of financial assets and liabilities [Line Items] | ||
Total financial assets | 131,772 | 133,375 |
Fair value through profit or loss | Other assets | ||
Disclosure of financial assets and liabilities [Line Items] | ||
Total financial assets | 48,560 | 12,210 |
Amortized cost | Other assets | ||
Disclosure of financial assets and liabilities [Line Items] | ||
Total financial assets | 59,172 | 44,314 |
Amortized cost | Client and trust funds on deposit | ||
Disclosure of financial assets and liabilities [Line Items] | ||
Total financial assets | 1,199,904 | 973,143 |
Amortized cost | Accounts receivable | ||
Disclosure of financial assets and liabilities [Line Items] | ||
Total financial assets | $ 242,154 | $ 219,074 |
FINANCIAL INSTRUMENTS - Narrati
FINANCIAL INSTRUMENTS - Narrative (Details) | 12 Months Ended | |
Dec. 31, 2021CAD ($)shares | Dec. 31, 2020CAD ($)shares | |
Disclosure of financial assets and liabilities [Line Items] | ||
Transfers out of Level 3 of fair value hierarchy, assets | $ 202,000 | $ 0 |
Assets | 8,659,551,000 | 6,359,836,000 |
Liabilities | 7,043,911,000 | 4,742,106,000 |
Total financial assets | 1,898,373,000 | 1,865,714,000 |
Fair value through profit or loss | Other assets | ||
Disclosure of financial assets and liabilities [Line Items] | ||
Total financial assets | $ 48,560,000 | $ 12,210,000 |
Volatility | Contingent consideration and put option payable | Income approach | ||
Disclosure of financial assets and liabilities [Line Items] | ||
Significant unobservable input, liabilities | shares | 0.25 | 0.52 |
Forecasted Average Annualized Earnings Growth Rate | Contingent consideration and put option payable | Income approach | ||
Disclosure of financial assets and liabilities [Line Items] | ||
Significant unobservable input, liabilities | shares | 0.13 | 0.15 |
Bottom of range | Discount rate | Contingent consideration and put option payable | Income approach | ||
Disclosure of financial assets and liabilities [Line Items] | ||
Significant unobservable input, liabilities | shares | 0.04 | 0.03 |
Top of range | Discount rate | Contingent consideration and put option payable | Income approach | ||
Disclosure of financial assets and liabilities [Line Items] | ||
Significant unobservable input, liabilities | shares | 0.21 | 0.16 |
Level 1 | Fair value through profit or loss | Other assets | ||
Disclosure of financial assets and liabilities [Line Items] | ||
Total financial assets | $ 202,000 | $ 0 |
Level 3 | Fair value through profit or loss | Other assets | ||
Disclosure of financial assets and liabilities [Line Items] | ||
Total financial assets | 48,358,000 | 12,210,000 |
Level 3 | Recurring fair value measurement | Put option payable | ||
Disclosure of financial assets and liabilities [Line Items] | ||
Liabilities | 427,867,000 | 109,394,000 |
Level 3 | Recurring fair value measurement | Contingent consideration | ||
Disclosure of financial assets and liabilities [Line Items] | ||
Liabilities | 346,894,000 | 131,122,000 |
Level 2 | Recurring fair value measurement | Debentures | ||
Disclosure of financial assets and liabilities [Line Items] | ||
Liabilities | $ 3,520,159,000 | $ 2,575,740,000 |
FINANCIAL INSTRUMENTS - Investm
FINANCIAL INSTRUMENTS - Investments (Details) - CAD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Disclosure of financial assets and liabilities [Line Items] | ||
Assets | $ 8,659,551 | $ 6,359,836 |
Marketable securities | Recurring fair value measurement | ||
Disclosure of financial assets and liabilities [Line Items] | ||
Assets | 116,879 | 118,126 |
Securities owned, at market | Recurring fair value measurement | ||
Disclosure of financial assets and liabilities [Line Items] | ||
Assets | 14,893 | 15,249 |
Investments | Recurring fair value measurement | ||
Disclosure of financial assets and liabilities [Line Items] | ||
Assets | 131,772 | 133,375 |
Level 1 | Marketable securities | Recurring fair value measurement | ||
Disclosure of financial assets and liabilities [Line Items] | ||
Assets | 33,278 | 37,193 |
Level 1 | Securities owned, at market | Recurring fair value measurement | ||
Disclosure of financial assets and liabilities [Line Items] | ||
Assets | 14,893 | 15,249 |
Level 1 | Investments | Recurring fair value measurement | ||
Disclosure of financial assets and liabilities [Line Items] | ||
Assets | 48,171 | 52,442 |
Level 2 | Marketable securities | Recurring fair value measurement | ||
Disclosure of financial assets and liabilities [Line Items] | ||
Assets | 79,946 | 77,278 |
Level 2 | Securities owned, at market | Recurring fair value measurement | ||
Disclosure of financial assets and liabilities [Line Items] | ||
Assets | 0 | 0 |
Level 2 | Investments | Recurring fair value measurement | ||
Disclosure of financial assets and liabilities [Line Items] | ||
Assets | 79,946 | 77,278 |
Level 3 | Marketable securities | Recurring fair value measurement | ||
Disclosure of financial assets and liabilities [Line Items] | ||
Assets | 3,655 | 3,655 |
Level 3 | Securities owned, at market | Recurring fair value measurement | ||
Disclosure of financial assets and liabilities [Line Items] | ||
Assets | 0 | 0 |
Level 3 | Investments | Recurring fair value measurement | ||
Disclosure of financial assets and liabilities [Line Items] | ||
Assets | $ 3,655 | $ 3,655 |
RISK MANAGEMENT - Narrative (De
RISK MANAGEMENT - Narrative (Details) - CAD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Interest rate risk | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Reasonably possible change in risk variable, percent | 0.50% | 0.50% |
Reasonably possible change in risk variable, impact on interest expense | $ 1,488,000 | $ 1,000,000 |
Interest rate risk | Credit facility and loans payable | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Risk exposure associated with instruments sharing characteristic | $ 297,500,000 | 0 |
Interest rate risk | 2021 Debentures | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Risk exposure associated with instruments sharing characteristic | $ 200,000,000 | |
Price risk | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Reasonably possible change in risk variable, percent | 10.00% | 10.00% |
Reasonably possible change in risk variable, impact on net income | $ 13,177,000 | $ 13,337,000 |
Price risk | Investments | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Risk exposure associated with instruments sharing characteristic | 131,772,000 | 133,375,000 |
Credit risk | Financial assets | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Risk exposure associated with instruments sharing characteristic | 1,549,790,000 | 1,248,740,000 |
Credit risk | Client and trust funds on deposit | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Risk exposure associated with instruments sharing characteristic | 1,199,904,000 | 973,143,000 |
Credit risk | Accounts receivable | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Risk exposure associated with instruments sharing characteristic | 242,154,000 | 219,074,000 |
Credit risk | Other assets | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Risk exposure associated with instruments sharing characteristic | $ 107,732,000 | $ 56,523,000 |
RISK MANAGEMENT - Schedule of M
RISK MANAGEMENT - Schedule of Market Risk (Details) - Currency risk - CAD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Reasonably possible change in risk variable, percent | 10.00% | 10.00% |
Reasonably possible increase in risk variable, percent | 10.00% | 10.00% |
Reasonably possible decrease in risk variable, percent | 10.00% | 10.00% |
United States dollar | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
10% strengthening of foreign exchange rate on net income | $ (301,683) | $ (75,123) |
10% strengthening of foreign exchange rate on OCI | 4,917 | 1,511 |
10% weakening of foreign exchange rate on net income | 301,683 | 75,123 |
10% weakening of foreign exchange rate on OCI | (4,917) | (1,511) |
Australian dollar | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
10% strengthening of foreign exchange rate on net income | (191) | 389 |
10% strengthening of foreign exchange rate on OCI | 1,469 | 761 |
10% weakening of foreign exchange rate on net income | 191 | (389) |
10% weakening of foreign exchange rate on OCI | (1,469) | (761) |
Hong Kong dollar | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
10% strengthening of foreign exchange rate on net income | 138 | 127 |
10% strengthening of foreign exchange rate on OCI | 0 | 0 |
10% weakening of foreign exchange rate on net income | (138) | (127) |
10% weakening of foreign exchange rate on OCI | $ 0 | $ 0 |
RISK MANAGEMENT - Schedule of L
RISK MANAGEMENT - Schedule of Liquidity Risk (Details) - CAD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Dividends payable | $ 71,072 | $ 75,297 |
Client and trust funds payable | 1,202,079 | 961,080 |
Deferred consideration | 136,053 | 96,855 |
Contingent consideration | 346,894 | 131,122 |
Put option | 427,867 | 109,394 |
Total financial liabilities | 6,352,757 | $ 4,184,842 |
Liquidity risk | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Accounts payable and accrued liabilities | 351,495 | |
Dividends payable | 71,072 | |
Client and trust funds payable | 1,202,079 | |
Long-term debt | 3,798,711 | |
Deferred consideration | 136,053 | |
Contingent consideration | 346,894 | |
Put option | 427,867 | |
Total financial liabilities | 6,334,171 | |
2022 | Liquidity risk | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Accounts payable and accrued liabilities | 351,495 | |
Dividends payable | 71,072 | |
Client and trust funds payable | 1,202,079 | |
Long-term debt | 444,486 | |
Deferred consideration | 123,277 | |
Contingent consideration | 41,773 | |
Put option | 400,440 | |
Total financial liabilities | 2,634,622 | |
2023 | Liquidity risk | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Accounts payable and accrued liabilities | 0 | |
Dividends payable | 0 | |
Client and trust funds payable | 0 | |
Long-term debt | 0 | |
Deferred consideration | 12,776 | |
Contingent consideration | 225,747 | |
Put option | 0 | |
Total financial liabilities | 238,523 | |
2024 | Liquidity risk | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Accounts payable and accrued liabilities | 0 | |
Dividends payable | 0 | |
Client and trust funds payable | 0 | |
Long-term debt | 301,433 | |
Deferred consideration | 0 | |
Contingent consideration | 63,368 | |
Put option | 5,647 | |
Total financial liabilities | 370,448 | |
2025 | Liquidity risk | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Accounts payable and accrued liabilities | 0 | |
Dividends payable | 0 | |
Client and trust funds payable | 0 | |
Long-term debt | 450,000 | |
Deferred consideration | 0 | |
Contingent consideration | 16,006 | |
Put option | 18,782 | |
Total financial liabilities | 484,788 | |
2027 | Liquidity risk | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Accounts payable and accrued liabilities | 0 | |
Dividends payable | 0 | |
Client and trust funds payable | 0 | |
Long-term debt | 250,000 | |
Deferred consideration | 0 | |
Contingent consideration | 0 | |
Put option | 2,998 | |
Total financial liabilities | 252,998 | |
2030 | Liquidity risk | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Accounts payable and accrued liabilities | 0 | |
Dividends payable | 0 | |
Client and trust funds payable | 0 | |
Long-term debt | 1,214,344 | |
Deferred consideration | 0 | |
Contingent consideration | 0 | |
Put option | 0 | |
Total financial liabilities | 1,214,344 | |
2051 | Liquidity risk | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Accounts payable and accrued liabilities | 0 | |
Dividends payable | 0 | |
Client and trust funds payable | 0 | |
Long-term debt | 1,138,448 | |
Deferred consideration | 0 | |
Contingent consideration | 0 | |
Put option | 0 | |
Total financial liabilities | $ 1,138,448 |
RISK MANAGEMENT - Schedule of C
RISK MANAGEMENT - Schedule of Credit Risk (Details) - Credit risk - CAD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Loaned or delivered as collateral | Cash | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Risk exposure associated with instruments sharing characteristic | $ 6,942 | $ 12,321 |
Loaned or delivered as collateral | Securities | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Risk exposure associated with instruments sharing characteristic | 6,631 | 11,523 |
Borrowed or received as collateral | Cash | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Risk exposure associated with instruments sharing characteristic | 16,882 | 31,862 |
Borrowed or received as collateral | Securities | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Risk exposure associated with instruments sharing characteristic | $ 16,530 | $ 30,520 |
CAPITAL MANAGEMENT (Details)
CAPITAL MANAGEMENT (Details) - CAD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Disclosure of classes of share capital [line items] | |||
Cash and cash equivalents | $ 230,779 | $ 483,598 | $ 118,360 |
Total equity attributable to the shareholders of the Company | 1,588,517 | 1,582,447 | |
Long-term debt | 3,776,038 | 2,456,116 | |
Total capital | 5,364,555 | 4,038,563 | |
Regulatory Capital Maintenance | |||
Disclosure of classes of share capital [line items] | |||
Cash and cash equivalents | $ 21,695 | $ 14,680 |
COMMITMENTS (Details)
COMMITMENTS (Details) $ in Thousands | Dec. 31, 2021CAD ($) |
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | |
Loan guarantee commitment | $ 50,000 |
2022 | |
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | |
Lease commitments | 27,817 |
2023 | |
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | |
Lease commitments | 26,012 |
2024 | |
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | |
Lease commitments | 25,114 |
2025 | |
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | |
Lease commitments | 23,304 |
2026 | |
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | |
Lease commitments | 21,745 |
2027+ | |
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | |
Lease commitments | $ 121,300 |
SEGMENTED INFORMATION (Details)
SEGMENTED INFORMATION (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021CAD ($)reportableSegment | Dec. 31, 2020CAD ($) | Dec. 31, 2019CAD ($) | |
Disclosure of operating segments [line items] | |||
Number of reportable segments | reportableSegment | 2 | ||
Disclosure of Entity's Reportable Segments | |||
Management fees | $ 1,792,103 | $ 1,635,773 | |
Administration fees | 862,635 | 364,408 | |
Other income | 72,279 | 52,603 | |
Total revenue | 2,727,017 | 2,052,784 | |
Selling, general and administrative | 702,276 | 449,439 | |
Trailer fees | 551,700 | 509,444 | |
Advisor and dealer fees | 424,505 | 253,376 | |
Deferred sales commissions | 5,714 | 7,492 | |
Amortization and depreciation | 96,821 | 43,514 | |
Other expenses | 250,165 | 81,332 | |
Total expenses | 2,031,181 | 1,344,597 | |
Income before income taxes | 695,836 | 708,187 | |
Interest and lease finance | (109,670) | (65,440) | |
Provision for income taxes | (173,792) | (167,201) | |
Net income for the year | 412,374 | 475,546 | |
Goodwill | 3,255,941 | 2,053,672 | |
Fund contracts | 1,802,667 | 1,778,901 | |
Total indefinite-life intangibles | 5,058,608 | 3,832,573 | |
Non-current assets | 6,820,527 | 4,521,184 | |
Canada | |||
Disclosure of Entity's Reportable Segments | |||
Total revenue | 2,330,892 | 1,971,291 | |
Non-current assets | 3,669,613 | 3,492,876 | |
United States | |||
Disclosure of Entity's Reportable Segments | |||
Total revenue | 338,722 | 47,195 | |
Non-current assets | 3,039,774 | 912,731 | |
Australia | |||
Disclosure of Entity's Reportable Segments | |||
Total revenue | 57,403 | 34,298 | |
Non-current assets | 111,069 | 115,495 | |
Hong Kong | |||
Disclosure of Entity's Reportable Segments | |||
Non-current assets | 71 | 82 | |
Intersegment eliminations | |||
Disclosure of Entity's Reportable Segments | |||
Management fees | (17,864) | (14,303) | |
Administration fees | (190,193) | (165,650) | |
Other income | 0 | 0 | |
Total revenue | (208,057) | (179,953) | |
Selling, general and administrative | (18,403) | (14,611) | |
Trailer fees | (34,537) | (28,965) | |
Advisor and dealer fees | (154,738) | (135,888) | |
Deferred sales commissions | (379) | (489) | |
Amortization and depreciation | 0 | 0 | |
Other expenses | 0 | 0 | |
Total expenses | (208,057) | (179,953) | |
Income before income taxes | 0 | 0 | |
Goodwill | 0 | 0 | |
Fund contracts | 0 | 0 | |
Total indefinite-life intangibles | 0 | 0 | |
Unallocated amounts | |||
Disclosure of Entity's Reportable Segments | |||
Interest and lease finance | (109,670) | (65,440) | |
Provision for income taxes | (173,792) | (167,201) | |
Asset Management | Operating segments | |||
Disclosure of Entity's Reportable Segments | |||
Management fees | 1,809,967 | 1,650,076 | |
Administration fees | 0 | 0 | |
Other income | 26,949 | (2,227) | |
Total revenue | 1,836,916 | 1,647,849 | |
Selling, general and administrative | 376,670 | 325,245 | |
Trailer fees | 586,237 | 538,409 | |
Advisor and dealer fees | 0 | 0 | |
Deferred sales commissions | 6,093 | 7,981 | |
Amortization and depreciation | 25,383 | 24,714 | |
Other expenses | 90,624 | 69,176 | |
Total expenses | 1,085,007 | 965,525 | |
Income before income taxes | 751,909 | 682,324 | |
Goodwill | 1,312,543 | 1,311,873 | |
Fund contracts | 1,774,050 | 1,778,901 | |
Total indefinite-life intangibles | 3,086,593 | 3,090,774 | |
Wealth Management | Operating segments | |||
Disclosure of Entity's Reportable Segments | |||
Management fees | 0 | 0 | |
Administration fees | 1,052,828 | 530,058 | |
Other income | 45,330 | 54,830 | |
Total revenue | 1,098,158 | 584,888 | |
Selling, general and administrative | 344,009 | 138,805 | |
Trailer fees | 0 | 0 | |
Advisor and dealer fees | 579,243 | 389,264 | |
Deferred sales commissions | 0 | 0 | |
Amortization and depreciation | 71,438 | 18,800 | |
Other expenses | 159,541 | 12,156 | |
Total expenses | 1,154,231 | 559,025 | |
Income before income taxes | (56,073) | 25,863 | |
Goodwill | 1,943,398 | 741,799 | |
Fund contracts | 28,617 | 0 | |
Total indefinite-life intangibles | 1,972,015 | 741,799 | |
Wealth Management | Operating segments | Canada | |||
Disclosure of Entity's Reportable Segments | |||
Goodwill | 308,553 | $ 254,276 | |
Wealth Management | Operating segments | United States | |||
Disclosure of Entity's Reportable Segments | |||
Goodwill | $ 1,634,845 | $ 487,523 |
COMPENSATION OF KEY MANAGEMEN_2
COMPENSATION OF KEY MANAGEMENT (Details) - CAD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Analysis of income and expense [abstract] | ||
Cash compensation | $ 11,707 | $ 5,155 |
Equity-based compensation | 9,072 | 6,660 |
Total | $ 20,779 | $ 11,815 |
AMORTIZATION AND DEPRECIATION_2
AMORTIZATION AND DEPRECIATION (Details) - CAD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Analysis of income and expense [abstract] | ||
Depreciation | $ 13,212 | $ 12,295 |
Depreciation of right-of-use assets | 14,756 | 9,848 |
Amortization of intangibles | 66,137 | 19,317 |
Amortization of debenture transaction costs | 2,716 | 2,054 |
Total amortization and depreciation | $ 96,821 | $ 43,514 |
SUBSEQUENT EVENT (Details)
SUBSEQUENT EVENT (Details) $ in Thousands | Jan. 01, 2022CAD ($) |
Aggregated individually immaterial business combinations | Major business combination | Wealth Management | |
Disclosure of non-adjusting events after reporting period [line items] | |
Acquisition liabilities settled | $ 374,438 |