Rogers 2005 Annual Report Download - page 148

144 ROGERS 2005 ANNUAL REPORT . NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(s ) P E NSI O NS :
The Company implemented SFAS No. 132, Employers Disclosures about Pensions and Other Post-retirement Benefits – an
amendment of FASB Statement No. 87, 88 and 106 in 2004. The following summarizes the additional disclosures required
and different pension-related amounts recognized or disclosed in the Company’s accounts under United States GAAP:
2005 2004
Current service cost (employer portion) $ 15,094 $ 11,746
Interest cost 29,538 24,003
Expected return on plan assets (29,554) (25,153)
Amortization:
Transitional asset (9,875) (9,875)
Realized gains included in income 830 829
Net actuarial loss 7,555 4,989
Net periodic pension cost $ 13,588 $ 6,539
Accrued benefit asset $ 12,944 $ 3,214
Accumulated other comprehensive loss 19,167 20,970
Net amount recognized in balance sheet $ 32,111 $ 24,184
Under United States GAAP, the accrued benefit liability related to the Company’s supplemental unfunded pension benefits
for certain executives was $15.6 million (2004 – $12.5 million), the intangible asset was $5.0 million (2004 – $6.5 million)
and the accumulated other comprehensive loss was $1.3 million (2004 – nil).
(t ) RE C EN T UN I TE D S T A TE S A C CO U N TI N G P RO N O UN C EM E NT S :
SFAS 123(R), Share-Based Payment, as revised, is effective for fiscal 2006 of the Company. This revised standard requires
companies to recognize in the income statement, the grant-date fair value of stock options and other equity-based
compensation issued to employees. The fair value of liability-classified awards is remeasured subsequently at each report-
ing date through the settlement date while the fair value of equity-classified awards is not subsequently remeasured.
The alternative to use the intrinsic value method of Accounting Principles Board (“APB”) Opinion 25, which the Company
has chosen for United States GAAP purposes, is eliminated with this revised standard. The Company is currently evaluating
the impact of this revised standard.
In November 2004, the FASB issued SFAS No. 151, Inventory Costs, an amendment of ARB No. 43, Chapter 4. This
statement amends the guidance in ARB No. 43, Chapter 4, “Inventory Pricing” to clarify the accounting for abnormal
amounts of idle facility expense, freight, handling costs, and wasted material (spoilage). SFAS 151 requires that those
items be recognized as current-period charges. In addition, this statement requires that allocation of fixed production
overheads to costs of conversion be based upon the normal capacity of the production facilities. The provisions of
SFAS 151 are effective for inventory cost incurred in fiscal years beginning after June 15, 2005. As such, the Company is
required to adopt these provisions at the beginning of fiscal 2006. The Company is currently evaluating the impact of
this revised standard.
SFAS 153, Exchanges Of Non-Monetary Assets – an Amendment of APB Opinion 29, was issued in December
2004. APB Opinion 29 is based on the principle that exchanges of non-monetary assets should be measured based on the
fair value of assets exchanged. SFAS 153 amends APB Opinion 29 to eliminate the exception for non-monetary exchanges
of similar productive assets and replaces it with a general exception for exchanges of non-monetary assets that do not
have commercial substance. The standard is effective for the Company for non-monetary asset exchanges occurring in
fiscal 2006 and will be applied prospectively. The Company is currently evaluating the impact of this revised standard.