Sun Life 2015 Annual Report Download - page 155

Additional information for other share-based payment plans: The units outstanding under these plans and the liabilities recognized
for these units in our Consolidated Statements of Financial Position are summarized in the following table:
Number of units (in thousands) Sun Shares DSUs Total
Units outstanding December 31, 2014 6,523 814 7,337
Units outstanding December 31, 2015 6,194 878 7,072
Liability accrued as at December 31, 2014 $ 215 $ 34 $ 249
Liability accrued as at December 31, 2015 $ 194 $ 35 $ 229
Compensation expense and the income tax expense (benefit) for other share-based payment plans for the years ended December 31
are shown in the following table. Since expenses for the DSUs are accrued as part of incentive compensation in the year awarded, the
expenses below do not include these accruals. The expenses presented in the following table include increases in the liabilities for Sun
Shares and DSUs due to changes in the fair value of the common shares and the accruals of the Sun Shares liabilities over the vesting
period, and exclude any adjustment in expenses due to the impact of hedging.
For the years ended December 31, 2015 2014
Compensation expense $ 104 $ 134
Income tax expense (benefit) $ (28) $ (36)
20.D Share-Based Payment Plans of MFS
Share-based payment awards within MFS are based on their own shares. Restricted share awards and stock option awards are settled
in MFS shares and restricted stock unit awards are settled in cash. Restricted share awards, restricted stock unit awards, and stock
option awards generally vest over a four-year period and continued employment is generally the only service requirement for these
awards. Holders of restricted share awards and restricted stock unit awards are entitled to receive non-forfeitable dividend equivalent
payments during the vesting period at the same rate as the dividends on MFS’s shares.
Although restricted share awards and stock option awards are settled in shares, all of the MFS share-based awards, including
outstanding MFS shares, are accounted for as cash-settled share-based payment awards due to the fact that MFS has a practice of
repurchasing its outstanding shares after a specified holding period. The fair value of stock option awards is determined using the
Black-Scholes option pricing model, while the fair value of restricted share awards, restricted stock unit awards, and outstanding MFS
shares are estimated using a market consistent share valuation model. The amount of periodic compensation expense recognized is
impacted by grants of new awards, vesting, exercise, and forfeiture of unvested awards, share repurchases, changes in fair value of
awards, and outstanding MFS shares. The total liability accrued attributable to all MFS share-based payment plans as at
December 31, 2015 was $1,078 ($1,053 as at December 31, 2014) which includes a liability of $964 (US$696) for the stock options,
restricted shares, and outstanding MFS shares.
Compensation expense and the income tax expense (benefit) for these awards for the years ended December 31 are shown in the
following table:
For the years ended December 31, 2015 2014
Compensation expense $ 235 $ 338
Income tax expense (benefit) $ (66) $ (74)
21. Income Taxes
21.A Deferred Income Taxes
The following represents the deferred tax assets and liabilities in the Consolidated Statements of Financial Position by source of
temporary differences:
As at December 31, 2015 2014
Assets(1) Liabilities(1) Assets(1) Liabilities(1)
Investments $ (947) $ (10) $ (987) $ 170
Policy liabilities(2) 1,073 904 1,098 720
Deferred acquisition costs 176 (47) 135 (64)
Losses available for carry forward 558 (264) 634 (444)
Pension and other employee benefits 144 (232) 132 (233)
Other(3) 368 54 218 6
Total $ 1,372 $ 405 $ 1,230 $ 155
Total net deferred tax asset $ 967 $ 1,075
(1) Our deferred tax assets and deferred tax liabilities are offset when there is a legally enforceable right to offset current tax assets against current tax liabilities and when the
deferred taxes relate to the same taxable entity and the same taxation authority. Negative amounts reported under Assets are deferred tax liabilities included in a net
deferred tax asset position; negative amounts under Liabilities are deferred tax assets included in a net deferred tax liability position.
(2) Consists of Insurance contract liabilities and Investment contract liabilities net of Reinsurance assets.
(3) Includes unused tax credits.
Notes to Consolidated Financial Statements Sun Life Financial Inc. Annual Report 2015 153