Shaw 2013 Annual Report Download - page 118

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
]
Other benefit
p
lans
The Company has post employment benefits plans that provide post retirement health and lif
e
insurance covera
g
e to certain retirees in the media business and are funded on a
p
a
y
-as-
y
ou-
g
o
bas
i
s. The table below shows the chan
g
e
i
n the accrued
p
ost-ret
i
rement obl
ig
at
i
on wh
i
ch
i
s
recognized in the statement of financial position
.
2013
$
2012
$
A
ccrued benefit obligation, beginning of yea
r
19 16
Cu
rr
e
n
tse
rv
ice cost
–
–
Interest cost
1
1
Pa
y
ment o
f
bene
fi
ts to em
p
lo
y
ee
s
(1)
(1)
Remeasurements:
E
ff
ect o
f
changes
i
n demograph
i
c assumpt
i
on
s
(
4
)
–
Effect of chan
g
es in financial assum
p
tions
–
3
A
ccrued benefit obli
g
ation and
p
lan deficit, end of
y
ea
r
1
5
19
The we
i
ghted average durat
i
on o
f
the bene
fi
t obl
i
gat
i
on at August
31
,
2013 i
s
16
.
9
years
.
The post-ret
i
rement bene
fi
t plan expense, wh
i
ch
i
s
i
ncluded
i
n employee salar
i
es and bene
fi
ts
expense, is
$
1 (2012 –
$
1) and is comprised of interest cost.
The discount rates used to measure the post-retirement benefit cost for the year and th
e
accrued bene
fi
t obl
ig
at
i
on as at Au
g
ust
31
,
2013
were 4.5
0%
and 4.75
%
, res
p
ect
i
vel
y
(2012
– 5.5
0%
and 4.5
0%
, respect
i
vely
)
. A one percentage po
i
nt decrease
i
n the d
i
scount rat
e
would have increased the accrued benefit obligation at August 31, 2013 by
$
3
.
E
m
pl
oyer contr
ib
ut
i
ons
The Company’s estimated contributions to the defined benefit plans in fiscal 2014 are $28
.
27. RELATED PARTY TRAN
S
A
C
TI
O
N
S
C
ontrolling shareholder
The ma
j
or
i
t
y
o
f
the
C
lass A
S
hares are held b
y
JR
S
haw, members o
f
h
i
s
f
am
i
l
y
and th
e
companies owned and/or controlled by them (the “Shaw Family Group”). All of the Class A
Shares held b
y
the Shaw Famil
y
Grou
p
are sub
j
ect to a votin
g
trust a
g
reement entered into b
y
such
p
ersons. The
S
haw Fam
i
l
yG
rou
pi
sre
p
resented as D
i
rectors,
S
en
i
or Execut
i
ve an
d
Corporate Officers of the Company.
D
uring the year, the Company and the Shaw Family Group formed a partnership to make equit
y
investments in com
p
anies with new and emer
g
in
g
technolo
g
ies that have the
p
otential t
o
p
rovide future benefit to Shaw. The Shaw Famil
y
Grou
p
contributed $1 for its 20% interest in
t
he partnership.
11
4