Rogers 2011 Annual Report Download - page 121

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
The Company did not have any non-derivative held-to-maturity
financial assets during years ended December 31, 2011 and 2010.
(ii) Guarantees:
The Company has the following guarantees at December 31,
2011 and 2010 in the normal course of business:
(a) Business sale and business combination agreements:
As part of transactions involving business dispositions, sales of
assets or other business combinations, the Company may be
required to pay counterparties for costs and losses incurred as a
result of breaches of representations and warranties, intellectual
property right infringement, loss or damages to property,
environmental liabilities, changes in laws and regulations
(including tax legislation), litigation against the counterparties,
contingent liabilities of a disposed business or reassessments of
previous tax filings of the corporation that carries on the
business.
(b) Sales of services:
As part of transactions involving sales of services, the Company
may be required to pay counterparties for costs and losses
incurred as a result of breaches of representations and
warranties, changes in laws and regulations (including tax
legislation) or litigation against the counterparties.
(c) Purchases and development of assets:
As part of transactions involving purchases and development of
assets, the Company may be required to pay counterparties for
costs and losses incurred as a result of breaches of
representations and warranties, loss or damages to property,
changes in laws and regulations (including tax legislation) or
litigation against the counterparties.
(d) Indemnifications:
The Company indemnifies its directors, officers and employees
against claims reasonably incurred and resulting from the
performance of their services to the Company, and maintains
liability insurance for its directors and officers as well as those of
its subsidiaries.
The Company is unable to make a reasonable estimate of the
maximum potential amount it would be required to pay
counterparties. The amount also depends on the outcome of
future events and conditions, which cannot be predicted. No
amount has been accrued in the consolidated statements of
financial position relating to these types of indemnifications or
guarantees at December 31, 2011 or 2010 or January 1, 2010.
Historically, the Company has not made any significant payments
under these indemnifications or guarantees.
(iii) Fair values:
The tables above present the level in the fair value hierarchy into
which the fair values of financial instruments that are carried at
fair value on the consolidated statements of financial position
are categorized. There were no financial instruments
categorized in Level 3 (valuation technique using
non-observable market inputs) as at December 31, 2011 and
2010 and January 1, 2010.
19. OTHER LONG-TERM LIABILITIES:
December 31,
2011 December 31, 2010 January 1, 2010
Deferred pension liability (note 20) $ 167 $ 106 $ 49
Supplemental executive retirement
plan (note 20) 39 36 33
Restricted share units 24 16 11
Deferred compensation 15 16 18
CRTC commitments (note 25) 12 31 45
Liabilities related to stock options 989
Program rights liability 510 11
Other 561
$ 276 $ 229 $ 177
20. 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. The Company also provides
supplemental unfunded pension benefits to certain executives.
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, 2011 for three of the plans and January 1,
2009 for one of the other plans. The next actuarial valuation for
funding purposes must be of a date no later than January 1, 2012 for
these plans.
The estimated present value of accrued plan benefits and the
estimated market value of the net assets available to provide for
these benefits at December 31, 2011 and 2010 and January 1, 2010 are
as follows:
December 31,
2011 December 31, 2010 January 1, 2010
Plan assets, at fair value $684$ 652 $ 541
Accrued benefit obligations 817 728 569
Deficiency of plan assets over
accrued benefit obligations (133) (76) (28)
Effect of asset ceiling limit (1) (4) (8)
Net deferred pension liability $ (134) $ (80) $ (36)
Consists of:
Deferred pension asset $33 $26$13
Deferred pension liability (167) (106) (49)
Net deferred pension liability $ (134) $ (80) $ (36)
2011 ANNUAL REPORT ROGERS COMMUNICATIONS INC. 117