Shaw 2013 Annual Report Download - page 115

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S
haw
C
ommunications Inc
.
N
O
TE
S
T
OCO
N
SO
LIDATED FINAN
C
IAL
S
TATEMENT
S
August 31, 2013 and 201
2
[all amounts in millions of Canadian dollars exce
p
t share and
p
er share amounts
]
The tables below show the significant weighted-average assumptions used to measure the
p
ension obli
g
ation and cost for the
p
lans.
A
ccrued bene
fi
t obl
ig
at
i
o
n
2013
S
ER
P
%
2013
ERP
%
2012
S
ER
P
%
D
iscou
n
t
r
ate
4
.
75 4
.
75
4.
50
Rate o
f
compensat
i
on
i
ncrease
5
.
00
(1)
3
.
00
5
.
00
(1)
Benefit cost for the year
2013
SER
P
%
2013
ER
P
%
2012
SER
P
%
Discount rate
4
.50 4.20 5.50
Rate o
f
com
p
ensat
i
on
i
ncrease
5
.
00
(
1)
3
.
00
5
.
00
(1) Applies only to incentive compensation component of eligible pensionable earnings
.
The calculation of the accrued benefit obligation is sensitive to the assumptions above. A one
p
ercenta
g
e
p
o
i
nt decrease
i
n the d
i
scount rate would have
i
ncreased the accrued bene
fit
o
bligation at August 31, 2013 by $68. A one percentage point increase in the rate o
f
compensation increase would have increased the accrued benefit obligation by
$
13
.
W
hen calculatin
g
the sensitivit
y
of the defined benefit obli
g
ation to si
g
nificant actuaria
l
assum
p
t
i
ons, the
p
resent value o
f
the de
fi
ned bene
fi
t obl
ig
at
i
on has been calculated us
i
n
g
the
projected benefit method which is the same method that is applied in calculating the define
d
benefit liabilit
y
reco
g
nized in the statement of financial
p
osition. The sensitivit
y
anal
y
sis
p
resented above ma
y
not be re
p
resentat
i
ve o
f
the actual chan
g
e
i
n the accrued bene
fit
o
bligation as it is unlikely that the change in assumptions would occur in isolation of one
another as some assum
p
tions ma
y
be correlated
.
The net
p
ension benefit
p
lan ex
p
ense is com
p
rised of the followin
g
com
p
onents
:
S
ER
P
$
ERP
$
2013
Tota
l
$
2012
S
ER
P
$
Cu
rr
e
n
tse
rv
ice cost
82 10
7
Past service cos
t
4– 4
–
In
te
r
est cost
17
–
17
19
Interest incom
e
(
13
)
–
(
13
)
–
Gain – past service adjustment
s
–– –
(
25)
Pension expense 1
6
21
8
1
The components of pension expense are included in employee salaries and benefits except for
t
he
g
a
i
n
i
n res
p
ect o
fp
ast serv
i
ce ad
j
ustments wh
i
ch
i
s
i
ncluded
i
n other losses
i
n the
i
ncom
e
state
m
e
n
t.
R
e
g
istered
p
ension
p
lans
The
C
ompany has a number o
ff
unded de
fi
ned bene
fi
t pens
i
on plans wh
i
ch prov
i
de pens
i
o
n
benefits to certain unionized and non-unionized employees in the media business. Benefits
u
nder these
p
lans are based on the em
p
lo
y
ees’ len
g
th o
f
serv
i
ce and
fi
nal avera
g
e salar
y
. These
plans are regulated by the
Offi
ce o
f
the
S
uper
i
ntendent o
f
F
i
nanc
i
al Inst
i
tut
i
ons,
C
anada
i
n
111