Telus 2010 Annual Report Download - page 153

TELUS 2010 annual report . 149
FINANCIAL STATEMENTS & NOTES: 13
(h) Fair value measurements – pension benefit plans
Information about the fair value measurements of the Company’s defined benefit pension plans’ assets, in aggregate, is as follows:
Fair value measurements at reporting date using
Quoted prices in active Significant other Significant
markets for identical items observable inputs unobservable inputs
To t a l (Level 1) (Level 2) (Level 3)
As at December 31 (millions) 2010 2009 2010 2009 2010 2009 2010 2009
Asset class
Equity securities
Canadian $ß2,174 $ß1,921 $ß1,790 $ß1,743 $ 384 $ 178 $ß – $ß –
Foreign 1,589 1,415 1,122 969 412 380 55 66
Debt securities
Debt securities issued
by national, provincial
or local governments 1,357 1,207 1,071 1,014 286 193 – –
Corporate debt securities 558 620 – – 558 620 – –
Asset-backed securities 54 45 – – 54 45 – –
Commercial mortgages 218 312 – – – – 218 312
Cash and cash equivalents 386 389 17 25 369 364 – –
Real estate 429 393 51 45 – – 378 348
Other – 14 – – – 14 – –
$ß6,765 $ß6,316 $ß4,051 $ß3,796 $2,063 $ß1,794 $ß651 $ß726
At December 31, 2010, shares of TELUS Corporation accounted for less than 1% of the assets held in the pension and other benefit trusts
administered by the Company.
The changes in the years ended December 31, 2010 and 2009, of the fair value measurements of the Company’s defined benefit pension plans’
assets which use significant unobservable inputs, in aggregate, are as follows:
Asset class
Equity securities – foreign Commercial mortgages Real estate To t a l
Year ended December 31 (millions) 2010 2009 2010 2009 2010 2009 2010 2009
Balance, beginning of year $ß66 $ß80 $ß312 $ß285 $ß348 $ß320 $ß726 $ß685
Actual return on plan assets
relating to assets:
Still held at reporting date (19) (18) 1 17 (13) (13) (31) (14)
Sold during the period – – (3) 6 – – (3) 6
Purchases, sales and
settlements 8 4 (92) 4 43 41 (41) 49
Transfers in and/or out
of Level 3 – – – – – – – –
Balance, end of year $ß55 $ß66 $ß218 $ß312 $ß378 $ß348 $ß651 $ß726
significant unobservable inputs (Level 3). The changes in the years
ended December 31, 2010 and 2009, of the fair value measurements of
the Company’s other defined benefit plan’s assets which use significant
unobservable inputs are as follows:
(i) Fair value measurements – other benefit plan
As at December 31, 2010 and 2009, the Company has only one other
defined benefit plan and it had only one asset, an experience related
underwriting agreement, the fair value of which was determined using
Actual return on plan assets
Balance, relating to assets Purchases, Transfers in
beginning Still held at the Sold during sales and and/or out Balance,
(millions) of year reporting date the period settlements of Level 3 end of year
Asset class
Experience rated underwriting agreement(1)
Year ended December 31, 2009 $ß34 $ß– $ß– $ß(4) $ß– $ß30
Year ended December 31, 2010 $ß30 $ß1 $ß– $ß(2) $ß– $ß29
(1) The effect of the experience rated underwriting agreement is that the Company’s contributions were transferred to an insurance company that in turn provides
the other defined benefits.