Shaw 2015 Annual Report Download - page 97

Download and view the complete annual report

Please find page 97 of the 2015 Shaw annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 110

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110

Shaw Communications Inc.
Notes to the Consolidated Financial Statements
August 31, 2015 and 2014
[all amounts in millions of canadian dollars except share and per share amounts]
The underlying plan assets of the SERP and ERP at August 31, 2015 are invested in the following:
SERP
$
ERP
$
Cash and cash equivalents 215 2
Fixed income securities 93 1
Equity securities – Canadian 21 –
Equity securities – Foreign 58 1
387 4
All fixed income and equity securities have a quoted price in active market.
The tables below show the significant weighted-average assumptions used to measure the pension obligation and cost for the
plans.
Accrued benefit obligation
2015
SERP
%
2015
ERP
%
2014
SERP
%
2014
ERP
%
Discount rate 4.10 4.10 4.00 4.00
Rate of compensation increase 5.00(1) 3.00 5.00(1) 3.00
Benefit cost for the year
2015
SERP
%
2015
ERP
%
2014
SERP
%
2014
ERP
%
Discount rate 4.00 4.00 4.75 4.75
Rate of compensation increase 5.00(1) 3.00 5.00(1) 3.00
(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 percentage point decrease in the
discount rate would have increased the accrued benefit obligation at August 31, 2015 by $84. A one percentage point increase
in the rate of compensation increase would have increased the accrued benefit obligation by $13.
When calculating the sensitivity of the defined benefit obligation to significant actuarial assumptions, the present value of the
defined benefit obligation has been calculated using the projected benefit method which is the same method that is applied in
calculating the defined benefit liability recognized in the statement of financial position. The sensitivity analysis presented
above may not be representative of the actual change in the accrued benefit obligation as it is unlikely that the change in
assumptions would occur in isolation of one another as some assumptions may be correlated.
The net pension benefit plan expense, which is included in employee salaries and benefits expense, is comprised of the
following components:
SERP
$
ERP
$
2015
Total
$
SERP
$
ERP
$
2014
Total
$
Current service cost 72 9 93 12
Interest cost 20 – 20 19 – 19
Interest income (14) – (14) (15) – (15)
Pension expense 13 2 15 13 3 16
2015 Annual Report Shaw Communications Inc. 95