Page 122 - Suncor AR English
P. 122
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
The net unfunded obligation is recorded in Accounts Payable and Accrued Liabilities and Other Long-Term Liabilities
(note 22) in the Consolidated Balance Sheets.
Other
Post-Retirement
Pension Benefits Benefits
($ millions)
2013 2012 2013
2012
(restated –
note 6)
Analysis of amount charged to earnings:
.......................................................................................................................................................................................................................................................
Current service costs 160 143 13 11
.......................................................................................................................................................................................................................................................
Past service costs 13 — — —
.......................................................................................................................................................................................................................................................
Interest costs 47 57 21 22
Defined benefit plans expense 220 200 34 33
.......................................................................................................................................................................................................................................................
Defined contribution plans expense 62 53 — —
Total benefit plans expense charged to earnings 282 253 34
33
Components of defined benefit costs recognized in Other Comprehensive Income:
Other
Post-Retirement
Pension Benefits Benefits
($ millions) 2013 2012
2013 2012
(restated –
note 6)
Return on plan assets (excluding amounts included in net interest
expense) (279) (124)
— —
.......................................................................................................................................................................................................................................................
Experience loss (gain) arising on plan liabilities 25 18 (5) (13)
.......................................................................................................................................................................................................................................................
Actuarial loss (gain) arising from changes in demographic assumptions 38 — (1) —
.......................................................................................................................................................................................................................................................
Actuarial (gain) loss arising from changes in financial assumptions (488) 269 (70) 33
Actuarial (gain) loss recognized in other comprehensive income (704) 163 (76) 20
Actuarial Assumptions
The cost of the defined benefit pension plans and other post-retirement benefits received by employees is actuarially
determined using the projected unit credit method of valuation that includes employee service to date and present pay
levels, as well as projection of salaries and service to retirement.
The significant weighted average actuarial assumptions were as follows:
Other
Post-Retirement
Pension Benefits
Benefits
Dec 31 Dec 31 Dec 31 Dec 31
(%)
2013
2012
2013
2012
4.70
3.90
4.70
3.90
Discount rate
.......................................................................................................................................................................................................................................................
Rate of compensation increase 3.45 3.65 3.30 3.75
The discount rate assumption is based on the interest rate on high-quality bonds with maturity terms equivalent to the
benefit obligations.
The defined benefit obligation reflects the best estimate of the mortality of plan participants both during and after their
employment. The mortality assumption is based on a standard mortality table adjusted for actual experience over the past
five years.
118 SUNCOR ENERGY INC. ANNUAL REPORT 2013
