Rogers 2014 Annual Report Download - page 125

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
The table below sets out the estimated present value of accrued plan
benefits and the estimated market value of the net assets available to
provide these benefits for our funded plans as at December 31, 2014
and December 31, 2013.
(In millions of dollars) 2014 2013
Plan assets, at fair value 1,285 1,037
Accrued benefit obligations 1,592 1,209
Deficiency of plan assets over accrued benefit
obligations (307) (172)
Effect of asset ceiling limit (7) (9)
Net deferred pension liability (314) (181)
Consists of:
Deferred pension asset 78
Deferred pension liability (321) (189)
Net deferred pension liability (314) (181)
The table below shows our pension fund assets for 2014 and 2013.
(In millions of dollars) 2014 2013
Plan assets, January 1 1,037 833
Interest income 57 40
Remeasurements, return on plan assets recognized
in other comprehensive income and equity 94 65
Contributions by employees 30 26
Contributions by employer 106 101
Benefits paid (37) (26)
Administrative expenses paid from plan assets (2) (2)
Plan assets, December 31 1,285 1,037
The table below shows the accrued benefit obligations arising from
funded obligations for the years ended December 31, 2014 and 2013.
(In millions of dollars) 2014 2013
Accrued benefit obligations, January 1 1,209 1,167
Service cost 70 71
Interest cost 61 52
Benefits paid (37) (26)
Contributions by employees 30 26
Remeasurements, recognized in other
comprehensive income and equity 259 (81)
Accrued benefit obligations, December 31 1,592 1,209
The table below shows the effect of the asset ceiling for the years
ended December 31, 2014 and 2013.
(In millions of dollars) 2014 2013
Asset ceiling, January 1 (9) –
Interest expense (1) –
Remeasurements, change in asset ceiling (excluding
interest expense) 3(9)
Asset ceiling, December 31 (7) (9)
Plan assets are comprised mainly of pooled funds that invest in
common stocks and bonds that are traded in an active market. The
table below shows the fair value of the total pension plan assets by
major category for the years ended December 31, 2014 and 2013.
(In millions of dollars) 2014 2013
Equity securities 774 631
Debt securities 506 403
Other – cash 53
Total fair value of plan assets 1,285 1,037
The table below shows our net pension expense for 2014 and 2013.
Net interest cost is included in finance costs and other pension
expenses are included in the salaries and benefits expense in the
Consolidated Statements of Income.
(In millions of dollars) 2014 2013
Plan cost:
Service cost 70 71
Net interest cost 412
Net pension expense 74 83
Administrative expense 22
Total pension cost recognized in net income 76 85
Net interest cost, a component of the plan cost above is included in
finance costs and is outlined as follows.
(In millions of dollars) 2014 2013
Net interest cost:
Interest income on plan assets (57) (40)
Interest cost on plan obligation 61 52
Netinterestcostrecognizedinfinancecosts 412
The remeasurement recognized in other comprehensive income, is
determined as follows.
(In millions of dollars) 2014 2013
Return on plan assets (excluding interest income) 94 65
Change in financial assumptions (265) 140
Change in demographic assumptions 15 (43)
Effect of experience adjustments (9) (16)
Change in asset ceiling 2(9)
Remeasurement (loss) income recognized in other
comprehensive income and equity (163) 137
We also provide supplemental unfunded pension benefits to certain
executives. The table below includes our accrued benefit obligations,
pension expense included in employee salaries and benefits, net
interest cost and other comprehensive income.
(In millions of dollars) 2014 2013
Accrued benefit obligation, beginning of the year 49 45
Pension expense included in employee salaries and
benefits expense 22
Netinterestcostrecognizedinfinancecosts 22
Remeasurement recognized in other comprehensive
income 53
Benefits paid (2) (3)
Accrued benefit obligation, end of the year 56 49
2014 ANNUAL REPORT ROGERS COMMUNICATIONS INC. 121