Rogers 2012 Annual Report Download - page 111

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
The terms of the Company’s accounts receivable securitization
program are committed until its expiry on December 31, 2015 and the
initial funding was completed on January 14, 2013, subsequent to the
2012 year-end (note 27(d)). The buyer’s interest in these trade
receivables ranks ahead of the Company’s interest and the Company
has provided various credit enhancements through over-
collateralization in the form of reserves and deferral of a portion of
the purchase price from the sale proceeds. From month to month over
the term of the securitization program, the buyer will reinvest the
amounts collected from these receivables by buying additional
interests in certain of the Company’s on-going trade receivables. The
buyer of the Company’s trade receivables has no further claim on any
of the Company’s other assets.
20. OTHER LONG-TERM LIABILITIES:
2012 2011
Deferred pension liability (note 21) $ 343 $ 167
Supplemental executive retirement plan (note 21) 45 39
Restricted share units 28 24
Deferred compensation 13 15
CRTC commitments 912
Stock appreciation rights 99
Program rights liability 55
Other 65
$ 458 $ 276
21. 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.
Significant estimates are used in the determination of pension related
balances. 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, 2012, for the Company’s plans.
The estimated present value of accrued plan benefits and the
estimated market value of the net assets available to provide for
these benefits for the Company’s funded plans at December 31, 2012
and 2011 are as follows:
2012 2011
Plan assets, at fair value $ 833 $ 684
Accrued benefit obligations 1,167 817
Deficiency of plan assets over accrued benefit
obligations (334) (133)
Effect of asset ceiling limit –(1)
Net deferred pension liability $ (334) $ (134)
Consists of:
Deferred pension asset $9$33
Deferred pension liability (343) (167)
Net deferred pension liability $ (334) $ (134)
The following information is provided on pension fund assets
measured at December 31, 2012 and 2011, for the years then ended:
2012 2011
Plan assets, January 1 $ 684 $ 652
Expected return on plan assets 45 44
Actuarial gain (loss) recognized in other
comprehensive income and equity 30 (17)
Contributions by employees 23 20
Contributions by employer 85 80
Benefits paid (34) (27)
Plan settlements –(68)
Plan assets, December 31 $ 833 $ 684
Accrued benefit obligations arising from funded obligations are
outlined below for the years ended December 31, 2012 and 2011:
2012 2011
Accrued benefit obligations, January 1 $ 817 $ 728
Service cost 42 36
Interest cost 48 44
Benefits paid (34) (27)
Contributions by employees 24 20
Actuarial loss recognized in other
comprehensive income and equity 270 73
Plan settlements –(57)
Accrued benefit obligations, December 31 $ 1,167 $ 817
Net pension expense, which is included in employee salaries and
benefits expense, is outlined below:
2012 2011
Plan cost:
Service cost $42 $36
Interest cost 48 44
Expected return on plan assets (45) (44)
Net pension expense 45 36
Plan settlements –11
Total pension cost recognized in the consolidated
statements of income $45 $47
The Company also provides supplemental unfunded pension benefits
to certain executives. The accrued benefit obligations relating to
these supplemental plans amounted to approximately $45 million at
December 31, 2012 (December 31, 2011 – $39 million), and the related
expense for 2012 was $4 million (2011 – $4 million). In connection
with these plans, $5 million (2011 – $1 million) of actuarial losses were
recorded directly to OCI and retained earnings.
Certain subsidiaries have defined contribution plans with total
pension expense of $2 million in 2012 (2011 – $2 million), which is
included in employee salaries and benefits expense.
2012 ANNUAL REPORT ROGERS COMMUNICATIONS INC. 107