Air Canada 2013 Annual Report Download - page 116

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2013 Air Canada Annual Report
116
Pension and Other Employee Future Benefit Expense
The Corporation has recorded net defined benefit pension and other employee future benefits expense as follows:
Pension Benefits Other Employee Future Benefits
2013 2012 2013 2012
Consolidated Statement of Operations
Components of cost
Current service cost $ 264 $ 215 $60 $ 62
Past service cost from plan amendments (82) (123) – (4)
Administrative and other expenses 7 6 – –
Actuarial (gains) losses – – (16) (12)
Total cost recognized in Wages, salaries and benefits $ 189 $ 98 $44 $ 46
Net financing expense relating to employee benefits $ 155 $ 233 $53 $ 55
Total cost recognized in statement of operations $ 344 $ 331 $97 $ 101
Consolidated Other Comprehensive (Income) Loss
Remeasurements:
Experience loss (gain), including foreign exchange 35 (44) (23) (53)
Loss (gain) from change in demographic assumptions 764 79 32 2
Loss (gain) from change in financial assumptions (1,245) 1,829 (98) 114
Return on plan assets (1,199) (1,021) – –
Minimum funding liability (174) (1,732) – –
Total cost recognized in OCI $ (1,819) $ (889) $(89) $ 63
Composition of Pension Plan Assets
Domestic Registered Plans
The composition of the Domestic Registered Plan assets and the target allocation are the following:
2013 2012 Target Allocation(1)
Non-matched assets (mainly equities) 52.8% 54.9% 53.0%
Matched assets (mainly Canadian bonds) 47.2% 45.1% 47.0%
100.0% 100.0% 100.0%
(1) Weighted average of the Master Trust Fund target allocation (99% of Domestic Registered Plan assets) and the Bond Fund target allocation. The Bond Fund serves the
purpose of altering the asset mix of some of the participating plans. These plans exhibit characteristics that differ from the majority of the participating plans, which are
solely invested in the Master Trust.
All invested assets within the Master Trust are comprised of the following asset categories:
2013 2012
Bonds 47% 51%
Equities 21% 22%
Privately held entities 21% 19%
Cash and cash equivalents 11% 8%
100% 100%