Shaw 2010 Annual Report Download - page 106

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Defined benefit pension plan
The Company provides a non-contributory defined benefit pension plan for certain of its senior
executives. Benefits under this plan are based on the employees’ length of service and their highest
three-year average rate of pay during their years of service. Employees are not required to contribute
to the plan. The plan is unfunded. There are no minimum required contributions and no
discretionary contributions are currently planned. The plan has remained unchanged since 2007.
The table below shows the change in benefit obligation.
2010
$
2009
$
Accrued benefit obligation and plan deficit, beginning of year 195,659 184,795
Current service cost 5,448 5,002
Past service cost 12,057 –
Interest cost 13,557 11,817
Actuarial losses (gains) 49,321 (4,507)
Payment of benefits to employees (1,448) (1,448)
Accrued benefit obligation and plan deficit, end of year 274,594 195,659
Reconciliation of accrued benefit obligation to Consolidated Balance
Sheet accrued pension benefit liability
2010
$
2009
$
Balance of unamortized pension obligation:
Unamortized past service costs 36,043 28,817
Unamortized actuarial loss 104,264 60,430
140,307 89,247
Accrued pension benefit liability recognized in Consolidated
Balance Sheet:
Accounts payable and accrued liabilities 1,448 1,448
Other long-term liability 132,839 104,964
134,287 106,412
Accrued benefit obligation, end of year as above 274,594 195,659
The tables below show the significant weighted-average assumptions used to measure the pension
obligation and cost.
Accrued benefit obligation
2010
%
2009
%
Discount rate 5.75 6.75
Rate of compensation increase 5.00 5.00
Benefit cost for the year
2010
%
2009
%
2008
%
Discount rate 6.75 6.25 5.50
Rate of compensation increase 5.00 5.00 5.00
102
Shaw Communications Inc.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
August 31, 2010, 2009 and 2008
[all amounts in thousands of Canadian dollars except share and per share amounts]