Rogers 2004 Annual Report Download - page 101

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99
Rogers Communications Inc. 2004 Annual Report
For 2004 and 2003, the effect of potentially dilutive securities, including the Convertible Debentures and the Convertible Preferred
Securities, were excluded from the computation of diluted earnings (loss) per share as their effect is anti-dilutive. In addition, options
totalling approximately 18.1 million (2003 – 12.4 million) that are anti-dilutive are excluded from the calculation.
16. PENSIONS:
The Company maintains both contributory and non-contributory defined benefit pension plans that cover most of its employees. The
plans provide pensions based on years of service, years of contributions and earnings. The Company does not provide any non-pension
post-retirement benefits.
Actuarial estimates are based on projections of employees’ compensation levels at the time of retirement. Maximum retirement
benefits are primarily based upon career average earnings, subject to certain adjustments. The most recent actuarial valuations were
completed as at January 1, 2004. The next actuarial valuation for funding purposes must be of a date no later than January 1, 2005 for one
of the plans. For certain other plans, the next actuarial valuation for funding purposes must be of a date no later than January 1, 2007.
The Company also provides supplemental unfunded pension benefits to certain executives. The accrued benefit obligation relating
to these supplemental plans amounted to approximately $14.1 million at December 31, 2004 (2003 – $11.8 million) and related expense
for 2004 was $2.9 million (2003 – $3.2 million).
The estimated present value of accrued plan benefits and the estimated market value of the net assets available to provide for
these benefits measured at September 30 for the year ended December 31 are as follows:
2004 2003
Plan assets, at fair value $ 402,433 $ 339,071
Accrued benefit obligations 453,318 368,306
Deficiency of plan assets over accrued benefit obligations (50,885) (29,235)
Employer contributions after measurement date 4,851 11,000
Unrecognized transitional obligation (48,108) (57,983)
Unamortized past service 4,974 5,803
Unamortized net actuarial loss 113,352 87,871
Deferred pension asset $ 24,184 $ 17,456
Pension fund assets consist primarily of fixed income and equity securities, valued at market value. The following information is provided
on pension fund assets measured at September 30 for the year ended December 31:
2004 2003
Plan assets, beginning of year $ 339,071 $ 310,164
Actual return on plan assets 43,053 36,332
Contributions by employees 13,237 13,248
Contributions by employer 25,572 –
Benefits paid (18,500) (18,504)
Net transfer out – (2,169)
Plan assets, end of year $ 402,433 $ 339,071
Accrued benefit obligations are outlined below measured at September 30 for the year ended December 31:
2004 2003
Accrued benefit obligations, beginning of year $ 368,306 $ 337,847
Service cost 11,746 11,314
Interest cost 24,003 23,826
Benefits paid (18,500) (18,504)
Contributions by employees 13,237 13,248
Actuarial loss 54,526 2,744
Net transfer out – (2,169)
Accrued benefit obligations, end of year $ 453,318 $ 368,306