Rogers 2015 Annual Report Download - page 128

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
NOTE 22: OTHER LONG-TERM LIABILITIES
As at December 31
(In millions of dollars) Note 2015 2014
Deferred pension liability 23 296 321
Supplemental executive retirement
plan 23 56 56
Stock-based compensation 25 50 37
Other 53 48
Total other long-term liabilities 455 462
NOTE 23: POST-EMPLOYMENT BENEFITS
ACCOUNTING POLICY
Post-employment benefits
We offer contributory and non-contributory defined benefit
pension plans that provide employees with a lifetime monthly
pension on retirement.
We separately calculate our net obligation for each defined benefit
pension plan by estimating the amount of future benefits
employees have earned in return for their service in the current and
prior years and discounting those benefits to determine their
present value.
We accrue our pension plan obligations as employees provide the
services necessary to earn the pension. We use a discount rate
based on market yields on high quality corporate bonds at the
measurement date to calculate the accrued pension benefit
obligation. Remeasurements of the accrued pension benefit
obligation are determined at the end of the year and include
actuarial gains and losses, returns on plan assets, and any change in
theeffectoftheassetceiling.Thesearerecognizedinother
comprehensive income and retained earnings.
The cost of pensions is actuarially determined and takes into
account the following assumptions and methods for pension
accounting related to our defined benefit pension plans:
• expected rates of salary increases for calculating increases in
future benefits;
• mortality rates for calculating the life expectancy of plan
members; and
• past service costs from plan amendments are immediately
expensed in net income.
We recognize our net pension expense for our defined benefit
pension plans and contributions to defined contribution plans as
an employee benefit expense in operating costs on the
Consolidated Statements of Income in the periods the employees
provide the related services.
Termination benefits
We recognize termination benefits as an expense when we are
committed to a formal detailed plan to terminate employment
before the normal retirement date and it is not realistic that we will
withdraw it.
USE OF ESTIMATES AND JUDGMENTS
ESTIMATES
Detailed below are the significant assumptions used in the actuarial
calculations used to determine the amount of the defined pension
obligation and related expense.
Significant estimates are involved in determining pension-related
balances. Actuarial estimates are based on projections of
employees’ compensation levels at the time of retirement.
Maximum retirement benefits are primarily based on career
average earnings, subject to certain adjustments. The most recent
actuarial valuations were completed as at January 1, 2015.
Principal actuarial assumptions
2015 2014
Weighted average of significant
assumptions:
Defined benefit obligation
Discount rate 4.3% 4.1%
Rate of compensation
increase 3.0% 3.0%
Mortality rate CIA Private with
CPM B Scale
CIA Private with
CPM B Scale
Pension expense
Discount rate 4.1% 5.1%
Rate of compensation
increase 3.0% 3.0%
Mortality rate CIA Private with
CPM B Scale
CIA Private with
CPM A Scale
126 ROGERS COMMUNICATIONS INC. 2015 ANNUAL REPORT