| |
Notes to Financial Statements February 28, 2007 |
|
| |
|
|
| |
6. |
Property and Equipment |
|
| |
|
|
|
| |
|
| (in thousands of dollars) |
 |
2008
|
|
2007
|
|
|
|
|
|
|
|
|
|
| |
Cost |
Accumulated
Amortization |
Carrying
Value |
Carrying
Value |
|
|
|
|
|
| Land |
$ 3,115 |
$ — |
$ 3,115 |
$ 2,757 |
| Land improvements |
5,468 |
2,167 |
3,301 |
2,644 |
| Buildings |
28,565 |
12,631 |
15,934 |
16,216 |
| Computer equipment |
38,275 |
33,123 |
5,152 |
3,177 |
| Vehicles |
5,430 |
3,668 |
1,762 |
1,666 |
| Furniture and equipment |
14,819 |
11,630 |
3,189 |
3,237 |
|
|
|
|
|
| |
95,672 |
63,219 |
32,453 |
29,697 |
| Leasehold improvements |
1,760 |
1,602 |
158 |
174 |
|
|
|
|
|
| |
$ 97,432 |
$ 64,821 |
$ 32,611 |
$ 29,871 |
|
|
|
|
|
|
|
| |
|
|
|
| |
7. |
Provision for Employee Future Benefits |
|
| |
|
The corporation has a defined benefit pension plan, severance benefit plan and a post-retirement extended health benefit plan available to eligible employees. The defined benefit pension plan is based on years of service and final average salary whereas the severance benefit plan is based on years of service and final salary.
The corporation uses an actuarial valuation, on an annual basis, to measure the accrued provision for its benefit plans. The most recent actuarial valuation was conducted by an external actuary as at December 31, 2007, with the next scheduled actuarial valuation being December 31, 2008.
The actuarial valuation is based on the corporation’s best estimate of various economic assumptions. With respect to the demographic assumptions, the corporation relies on and uses the assumptions adopted by the Civil Service Superannuation Board. Results from the most recent actuarial valuations, projected to February 29/28 and the corresponding economic assumptions are as follows: |
|
| |
|
|
|
| |
|
| |
|
2008 |
|
2007 |
|
2008 |
|
2007 |
|
|
|
| |
Pension Benefit Plan |
|
Other Benefits Plans |
|
|
| Economic assumptions: |
|
|
|
|
|
|
|
| Discount rate |
5.40% |
5.65% |
5.40% |
5.65% |
| Inflation rate |
2.00% |
2.25% |
— |
— |
| Expected salary increase |
2.75% |
2.75% |
— |
— |
| Expected health care cost increase |
— |
— |
7.00% |
7.00% |
|
|
| |
(in thousands of dollars) |
|
|
| Balance, beginning of year |
$ 136,620 |
|
$ 124,368 |
|
$ 29,852 |
|
$ 27,376 |
| Current service cost |
6,630 |
6,320 |
3,251 |
3,072 |
| Interest cost |
8,039 |
7,198 |
583 |
448 |
| Benefits paid |
(4,282) |
(3,496) |
(2,109) |
(1,626) |
| Actuarial valuation deficiency |
8,718 |
2,230 |
1,278 |
582 |
|
|
| Provision for employee future benefits |
$ 155,725 |
|
$ 136,620 |
|
$ 32,855 |
|
$ 29,852 |
|
|
|
|
| Employee contribution for the year |
$ 5,343 |
|
$ 5,108 |
|
$ — |
|
$ — |
|
|
|
| |
|
Plan Assets
The corporation has not segregated investment assets to fund the benefit plans. Funding occurs as benefits are paid. The corporation has established a provision against general assets, which is being increased to match the increase in its benefit plan liabilities. The interest cost associated with the various benefit plans is based on market interest rates at the most recent valuation date.
| |
|
2008 |
|
2007 |
|
2008 |
|
2007 |
|
|
|
| |
Pension Benefit Plan |
|
Other Benefit Plans |
|
|
|
|
| |
(in thousands of dollars) |
|
|
| Plan expenses for the year: |
|
|
|
|
|
|
|
| Current service cost |
$ 6,630 |
$ 6,320 |
$ 3,251 |
$ 3,072 |
| Interest cost (Note 11) |
8,039 |
7,198 |
583 |
448 |
Actuarial valuation deficiency
Pertaining to interest (Note 11) |
5,492 |
1,404
|
—
|
—
|
| Pertaining to expense |
3,226 |
826 |
1,278 |
582 |
|
|
| |
$ 23,387 |
|
$ 15,748 |
|
$ 5,112 |
|
$ 4,102 |
|
|
|
| |
|
|
|
