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23. MEDIUM-TERM INCENTIVE PLAN

Restricted units

The following table shows the outstanding units and current estimated liability pertaining to the RUs issued under the Company’s incentive plan as at December 31.

2016 Outstanding units and current estimated liability
2016
Performance cycles Number of units Liability (in thousands of dollars)
2014-2016 73,694 $ 1,344
2015-2017 70,368   1,025
2016-2018 140,978   1,116
  285,040 $ 3,485
2015 Outstanding units and estimated liability
2015
Performance cycles Number of units Liability (in thousands of dollars)
2013-2015 77,714 $ 1,532
2014-2016 80,528   1,121
2015-2017 85,653   622
  243,895 $ 3,275

The following table shows the movements in the RUs during the year.

2016 Movements in the RUs
  2016 Number of units 2015 Number of units
Outstanding, beginning of year 243,895 181,866
Awarded 165,732 99,928
Cancelled Loss: (46,873) Loss: (37,899)
Settled Loss: (77,714)
Outstanding, end of year 285,040 243,895

A reconciliation of the RU liability is provided below:

2016 Reconciliation of the RU liability
(in thousands of dollars) 2016 2015
Balance, beginning of year $ 3,275 $ 1,864
Provisions made during the year   1,592   1,411
Payments made during the year   Loss: (1,382)  
Balance, end of year $ 3,485 $ 3,275

Performance units

The following table shows the outstanding units and current estimated liability pertaining to the PUs issued under the Company’s incentive plan as at December 31.

2016 PU Outstanding units and current estimated liability
2016
Performance cycles Number of units Liability (in thousands of dollars)
2014-2016 110,542 $ 1,818
2015-2017 105,554   1,498
2016-2018 211,466   1,828
  427,562 $ 5,144
2015 PU Outstanding units and current estimated liability
2015
Performance cycle Number of units Liability (in thousands of dollars)
2013-2015 116,572 $ 2,237
2014-2016 120,792   1,505
2015-2017 128,479   932
  365,843 $ 4,674

The following table shows the movements in the PUs during the year.

2016 Movements in the PUs
  2016
Number of units
2015
Number of units
Outstanding, beginning of year 365,843 272,802
Awarded 248,597 149,892
Cancelled Loss: (70,306) Loss: (56,851)
Settled Loss: (116,572)
Outstanding, end of year 427,562 365,843

A reconciliation of the PU liability is provided below:

2016 Reconciliation of the PU liability
(in thousands of dollars) 2016 2015
Balance, beginning of year $ 4,674 $ 2,740
Provisions made during the year   2,688   1,934
Payments made during the year   Loss: (2,218)  
Balance, end of year $ 5,144 $ 4,674

The liability for the RUs and PUs are recorded in “Accounts payable and other”. The amount charged to “Operating expenses” for the MTIP was $4.3 million for the year ended December 31, 2016 (2015: $3.3 million).