28.RELATED PARTY TRANSACTIONS
Compensation of key management personnel
Key management personnel comprises members of the Board of Directors and key senior managers of the Corporation and its main subsidiaries. Their compensation is as follows:
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2017 |
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2016 |
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2015 |
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Salaries and short-term benefits |
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$ |
9.1 |
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$ |
9.3 |
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$ |
9.9 |
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Share-based compensation |
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5.9 |
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9.3 |
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4.1 |
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Other long-term benefits |
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8.5 |
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1.3 |
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1.4 |
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$ |
23.5 |
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$ |
19.9 |
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$ |
15.4 |
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Operating transactions
During the year ended December 31, 2017, the Corporation made purchases and incurred rent charges with the parent corporation and affiliated companies in the amount of $9.2 million ($9.0 million in 2016 and $12.3 million in 2015), which are included in purchase of goods and services. The Corporation made sales to an affiliated corporation in the amount of $2.8 million ($3.0 million in 2016 and $3.3 million in 2015). These transactions were accounted for at the consideration agreed between parties.
Management arrangements
The parent corporation has entered into management arrangements with the Corporation. Under these management arrangements, the parent corporation and the Corporation provide management services to each other on a cost-reimbursement basis. The expenses subject to reimbursement include the salaries of the Corporation’s executive officers, who also serve as executive officers of the parent corporation. In 2017, the Corporation received an amount of $2.2 million, which is included as a reduction in employee costs ($2.2 million in 2016 and $2.0 million in 2015), and incurred management fees of $2.7 million ($2.6 million in 2016 and $2.2 million in 2015) with shareholders.
Tax transactions
In 2016, the parent corporation transferred $22.1 million of non-capital losses ($33.4 million in 2015) to the Corporation in exchange for a cash consideration of $5.6 million ($8.4 million in 2015). No such transfer was done in 2017. These transactions were concluded on terms equivalent to those that prevail on an arm’s length basis and were accounted for at the consideration agreed between the parties. As a result, the Corporation recorded a reduction of $0.3 million in its income tax expense in 2016 ($0.6 million in 2015).