Cogeco 2013 Annual Report Download - page 84

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Consolidated financial statements COGECO CABLE INC. 2013 83
B) CASH AND CASH EQUIVALENTS
At August 31, 2013 2012
$$
Cash 39,575 65,442
Cash equivalents(1) —149,949
39,575 215,391
(1) At August 31, 2012, Banker’s acceptances for a total of $149.9 million, bearing interest of 1.10% with maturity dates ranging from September 4, 2012 to
September 17, 2012.
19. EMPLOYEE BENEFITS
The Corporation and certain of its subsidiaries offer to their employees contributory defined benefit pension plans, defined contribution pension
plans or collective registered retirement savings plans. With respect to the defined contribution pension plans and the collective registered
retirement savings plans, the Corporation and its subsidiaries' obligations are limited to the payment of the monthly employer's contribution.
Expenses related to the defined contribution plans and the collective registered retirement savings plans amounted to $7,184,000 in fiscal
2013 ($5,711,000 in 2012).
The Corporation and certain of its subsidiaries sponsor a defined benefit pension plan for the benefit of its employees and a separate defined
benefit pension plan for the benefit of its senior executives, which provide pensions based on the number of years of service and the average
salary during the employment of each participant. In addition, the Corporation offers to its senior executives a supplementary pension plan.
The Corporation measures plan assets at fair value and the accrued benefit obligation at August 31 of each year for all plans. The most recent
actuarial valuation for the pension plan for the benefit of the employees was at August 31, 2012 and the next required valuation is at August
31, 2013. For the senior executives' plans, the most recent actuarial valuation was at August 31, 2011 and the next required valuation will be
at August 31, 2014.
The total cash amount paid or payable for employee future benefits for all plans, consisting of cash contributed by the Corporation to its funded
pension plans, cash payments directly to beneficiaries for its unfunded other benefit plans, and cash contributed to its defined contribution
plans, totaled $9,491,000 for the year ended August 31, 2013 ($7,506,000 in 2012).
The following table provides a reconciliation of the change in the plan benefit obligations and plan assets at fair value and a statement of the
funded status at August 31:
Years ended August 31, 2013 2012
(In thousands of Canadian dollars) $$
Accrued benefit obligation
Accrued benefit obligation, beginning of the year 28,811 22,811
Current service cost 1,967 1,451
Interest cost 1,205 1,147
Contributions by plan participants 354 343
Benefits paid (471)(427)
Actuarial loss (gain) on obligation recognized in equity (1,326) 3,486
Accrued benefit obligation, end of the year 30,540 28,811
Plan assets at fair value
Plan assets at fair value, beginning of the year 17,106 12,504
Expected return on plan assets 865 803
Difference between expected and actual return on plan assets recognized in equity 1,917 (695)
Contributions by plan participants 354 343
Employer contributions 4,750 4,578
Benefits paid (471)(427)
Plan assets at fair value, end of the year 24,521 17,106
Funded status
Plan assets at fair value 24,521 17,106
Accrued benefit obligation 30,540 28,811
Net accrued benefit liability 6,019 11,705
The accrued net benefit liability is included in the Corporation's statement of financial position under “Pension plan liabilities and accrued
employee benefits”.