Rogers 2015 Annual Report Download - page 131

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
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.
Years ended December 31
(In millions of dollars) 2015 2014
Accrued benefit obligation, beginning
of year 56 49
Pension expense included in employee
salaries and benefits expense 32
Netinterestcostrecognizedinfinance
costs 22
Remeasurement recognized in other
comprehensive (income) loss (2) 5
Benefits paid (3) (2)
Accrued benefit obligation, end of year 56 56
Certain subsidiaries have defined contribution plans with total
pension expense of $3 million in 2015 (2014 – $2 million), which is
included in employee salaries and benefits expense.
ALLOCATION OF PLAN ASSETS
Allocation of plan assets Target asset
allocation
percentage2015 2014
Equity securities:
Domestic 19.7% 20.3% 10% to 29%
International 41.3% 40.0% 29% to 48%
Debt securities 38.7% 39.4% 38% to 47%
Other – cash 0.3% 0.3% 0% to 2%
Total 100.0% 100.0%
Plan assets consist primarily of pooled funds that invest in common
stocks and bonds. The pooled Canadian equity funds have
investments in our equity securities. As a result, approximately
$3 million (2014 – $3 million) of the plans’ assets are indirectly
invested in our own equity securities.
We make contributions to the plans to secure the benefits of plan
members and invest in permitted investments using the target
ranges established by our Pension Committee, which reviews
actuarial assumptions on an annual basis.
The table below shows the actual contributions to the plans.
Years ended December 31
(In millions of dollars) 2015 2014
Employer contribution 118 106
Employee contribution 32 30
Total contribution 150 136
We estimate our 2016 employer contributions to be $119 million.
The average duration of the defined benefit obligation as at
December 31, 2015 is 19 years (2014 – 20 years).
Actual return on plan assets was $44 million in 2015
(2014 – $149 million).
We have recognized a cumulative loss in other comprehensive
income and retained earnings of $306 million as at December 31,
2015 (2014 – $324 million).
NOTE 24: SHAREHOLDERS’ EQUITY
CAPITAL STOCK
Share class
Number of shares
authorized for issue Features Voting rights
Preferred shares 400 million • Without par value
• Issuable in series, with
rights and terms of each
series to be fixed by our
Board of Directors prior to
the issue of any series
•None
Class A Voting shares 112,474,388 • Without par value
•Each share can be
converted into one
Class B Non-Voting share
• Each share entitled to
50 votes
Class B Non-Voting shares 1.4 billon • Without par value • None
RCI’s Articles of Continuance under the Company Act (British
Columbia) impose restrictions on the transfer, voting and issue of
the Class A Voting and Class B Non-Voting shares to ensure that
we remain qualified to hold or obtain licences required to carry on
certain of our business undertakings in Canada. We are authorized
to refuse to register transfers of any of our shares to any person
who is not a Canadian in order to ensure that Rogers remains
qualifiedtoholdthelicencesreferredtoabove.
2015 ANNUAL REPORT ROGERS COMMUNICATIONS INC. 129