XML 69 R49.htm IDEA: XBRL DOCUMENT v3.19.1
PENSION, POST-RETIREMENT AND OTHER LONG-TERM EMPLOYEE BENEFIT PLANS (Tables)
 12 Months Ended
Dec. 31, 2018
Disclosure of employee benefits [Abstract]  
Schedule of reconciliation of defined benefit obligations and plan assets
A reconciliation of the defined benefit obligations and plan assets is presented in the table below for the years ended:
 
Pension Plans
 
Other plans
 
December 31,
2018
 
December 31,
2017
 
December 31,
2018
 
December 31,
2017
 
$
 
$
 
$
 
$
Defined benefit obligations
 
 
 
 
 
 
 
Balance, beginning of year
86,462

 
79,821

 
3,152

 
2,867

Current service cost
1,193

 
1,076

 
44

 
46

Interest cost
3,031

 
3,096

 
106

 
111

Benefits paid
(3,701
)
 
(3,406
)
 
(71
)
 
(246
)
Actuarial (gains) losses from demographic assumptions
(163
)
 
(1,052
)
 
21

 
(565
)
Actuarial (gains) losses from financial assumptions
(5,186
)
 
3,989

 
(210
)
 
133

Experience losses (gains)
266

 
2,077

 
(113
)
 
707

Foreign exchange rate adjustment
(1,206
)
 
861

 
(149
)
 
99

Balance, end of year
80,696

 
86,462

 
2,780

 
3,152

Fair value of plan assets
 
 
 
 
 
 
 
Balance, beginning of year
60,316

 
51,856

 
—

 
—

Interest income
2,217

 
2,025

 
—

 
—

Return on plan assets (excluding amounts included in net interest expense)
(2,369
)
 
5,591

 
—

 
—

Contributions by the employer
13,805

 
3,956

 
—

 
—

Benefits paid
(3,701
)
 
(3,406
)
 
—

 
—

Administration expenses
(611
)
 
(507
)
 
—

 
—

Foreign exchange rate adjustment
(1,079
)
 
801

 
—

 
—

Balance, end of year
68,578

 
60,316

 
—

 
—

Funded status – deficit
12,118

 
26,146

 
2,780

 
3,152

The defined benefit obligations and fair value of plan assets broken down by geographical locations is as follows for the years ended:
 
December 31, 2018
 
US
 
Canada
 
Total
 
$
 
$
 
$
Defined benefit obligations
68,411

 
15,065

 
83,476

Fair value of plan assets
(56,186
)
 
(12,392
)
 
(68,578
)
Deficit in plans
12,225

 
2,673

 
14,898

 
 
 
 
 
 
 
December 31, 2017
 
US
 
Canada
 
Total
 
$
 
$
 
$
Defined benefit obligations
72,643

 
16,971

 
89,614

Fair value of plan assets
(46,835
)
 
(13,481
)
 
(60,316
)
Deficit in plans
25,808

 
3,490

 
29,298
Schedule of funded status of defined benefit plans
The defined benefit obligations for pension plans broken down by funding status are as follows for the years ended:
 
December 31,
2018
 
December 31,
2017
 
$
 
$
Wholly unfunded
10,567

 
11,195

Wholly funded or partially funded
70,129

 
75,267

Total obligations
80,696

 
86,462
Schedule of reconciliation of pension and other post-retirement benefits recognized in Balance Sheets
A reconciliation of pension and other post-retirement benefits recognized in the consolidated balance sheets is as follows for the years ended:
 
December 31,
2018
 
December 31,
2017
 
$
 
$
Pension Plans
 
 
 
Present value of the defined benefit obligation
80,696

 
86,462

Fair value of the plan assets
68,578

 
60,316

Deficit in plans
12,118

 
26,146

Liabilities recognized
12,118

 
26,146

Other plans
 
 
 
Present value of the defined benefit obligation and deficit in the plans
2,780

 
3,152

Liabilities recognized
2,780

 
3,152

Total plans
 
 
 
Total pension and other post-retirement benefits recognized in balance sheets
14,898

 
29,298
Schedule of composition of plan assets based on fair value
The composition of plan assets based on the fair value was as follows for the years ended:
 
December 31,
2018
 
December 31,
2017
 
$
 
$
Asset category
 
 
 
Cash
106

 
1,308

Equity instruments
10,682

 
33,559

Fixed income instruments
57,790

 
23,514

Real estate investment trusts
—

 
1,935

Total
68,578

 
60,316
Schedule of defined benefit expenses recognized in Consolidated Earnings
The following tables present the defined benefit expenses recognized in consolidated earnings for each of the years in the three-year period ended December 31, 2018:
 
Pension Plans
 
Other plans
 
2018
 
2017
 
2016
 
2018
 
2017
 
2016
 
$
 
$
 
$
 
$
 
$
 
$
Current service cost
1,193

 
1,076

 
1,176

 
44

 
46

 
22

Administration expenses
611

 
507

 
487

 
—

 
—

 
—

Net interest expense
814

 
1,071

 
1,174

 
106

 
111

 
143

Net costs recognized in the statement of consolidated earnings
2,618

 
2,654

 
2,837

 
150

 
157

 
165


 
Total Plans
 
2018
 
2017
 
2016
 
$
 
$
 
$
Current service cost
1,237

 
1,122

 
1,198

Administration expenses
611

 
507

 
487

Net interest expense
920

 
1,182

 
1,317

Net costs recognized in the statement of consolidated earnings
2,768

 
2,811

 
3,002
Schedule of defined benefit plan liability remeasurement recognized in OCI
The table below presents the defined benefit liability remeasurement recognized in OCI for each of the years in the three-year period ended December 31, 2018:
 
Pension Plans
 
Other plans
 
2018
 
2017
 
2016
 
2018
 
2017
 
2016
 
$
 
$
 
$
 
$
 
$
 
$
Actuarial gains (losses) from demographic assumptions
163

 
1,052

 
1,131

 
(21
)
 
565

 
21

Actuarial gains (losses) from financial assumptions
5,186

 
(3,989
)
 
(1,901
)
 
210

 
(133
)
 
(141
)
Experience (losses) gains
(266
)
 
(2,077
)
 
(1,383
)
 
113

 
(707
)
 
835

Return on plan assets (excluding amounts included in net interest expense)
(2,369
)
 
5,591

 
1,705

 
—

 
—

 
—

Total amounts recognized in OCI
2,714

 
577

 
(448
)
 
302

 
(275
)
 
715
Schedule of significant weighted average assumptions
The significant weighted average assumptions which were used to measure defined benefit obligations are as follows for the years ended:
 
US plans
 
Canadian plans
 
12/31/2018
 
12/31/2017
 
12/31/2018
 
12/31/2017
Discount rate
 
 
 
 
 
 
 
Pension plans (End of the Year) (1)
4.05
%
 
3.56
%
 
3.95
%
 
3.50
%
Pension plans (Current Service Cost) (2)
3.69
%
 
4.01
%
 
3.55
%
 
4.15
%
Other plans (End of the Year) (1)
3.71
%
 
3.10
%
 
3.95
%
 
3.50
%
Other plans (Current Service Cost) (2)
4.17
%
 
3.67
%
 
3.55
%
 
4.15
%
Life expectancy at age 65 (in years) (3)
 
 
 
 
 
 
 
Current pensioner - Male
20

 
20

 
22

 
22

Current pensioner - Female
22

 
22

 
25

 
24

Current member aged 45 - Male
22

 
21

 
23

 
23

Current member aged 45 - Female
24

 
24

 
26

 
25

(1) 
Represents the discount rate used to calculate the accrued benefit obligation at the end of the year and applied to other components such as interest cost.
(2) 
Represents the discount rate used to calculate annual service cost. Beginning in 2017, the current service cost is calculated using a separate discount rate to reflect the longer duration of future benefit payments associated with the additional year of service to be earned by the plan's active participants. Previously, the current service cost was calculated using the same discount rate used to measure the defined benefit obligation for both active and retired participants.
(3) 
Utilizes mortality tables issued by the Society of Actuaries and the Canadian Institute of Actuaries.
Schedule of sensitivity analysis for actuarial assumptions
The sensitivity analysis below has been determined based on reasonably possible changes in the assumptions, in isolation from one another, occurring at the end of the reporting period. This analysis may not be representative of the actual change in the defined benefit obligation as it is unlikely that the change in the assumptions would occur in isolation from one another as some of the assumptions may be correlated. An increase or decrease of 1% in the discount rate or an increase or decrease of one year in mortality rate would result in the following increase (decrease) in the defined benefit obligation:
 
12/31/2018
 
12/31/2017
 
$
 
$
Discount rate
 
 
 
Increase of 1%
(9,539
)
 
(10,988
)
Decrease of 1%
11,729

 
13,666

Mortality rate
 
 
 
Life expectancy increased by one year
2,263

 
2,856

Life expectancy decreased by one year
(2,392
)
 
(2,892
)