Financial Statements of - Shoppers Drug Mart
Financial Statements of - Shoppers Drug Mart
Financial Statements of - Shoppers Drug Mart
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SHOPPERS DRUG MART CORPORATION<br />
Notes to the Consolidated <strong>Financial</strong> <strong>Statements</strong><br />
(unaudited)<br />
(in thousands <strong>of</strong> Canadian dollars, except per share data)<br />
22. RETIREMENT BENEFIT OBLIGATIONS (continued)<br />
52 Weeks Ended January 1,<br />
2011<br />
Other benefit<br />
Pension plans plans<br />
Cumulative amount, beginning <strong>of</strong> financial year $ - $ -<br />
Recognized during the financial year 10,548 506<br />
Cumulative amount, end <strong>of</strong> financial year $ 10,548 $ 506<br />
Cash payments for employee future benefits consist <strong>of</strong> the Company’s contributions to the pension plans<br />
and cash payments made directly to beneficiaries <strong>of</strong> the other benefit plans and totalled $16,740. The<br />
Company expects to make contributions to the pension plans and cash payments made directly to<br />
beneficiaries <strong>of</strong> the other benefit plans <strong>of</strong> $6,116 in 2011.<br />
The assets <strong>of</strong> the registered pension plans consist <strong>of</strong> cash, contributions receivable and a proportionate<br />
share <strong>of</strong> a Master Trust. The assets held by the Master Trust are invested in a limited number <strong>of</strong> pooled<br />
funds, based on market values as at November 30, 2010 and 2009, respectively, as follows:<br />
January 1, 2011 January 3, 2010<br />
Equity 60% 61%<br />
Fixed income 39% 39%<br />
Cash and cash equivalents 1% -<br />
100% 100%<br />
There were no significant changes in the assets held by the Master Trust between November 30, 2010 and<br />
January 1, 2011 and between November 30, 2009 and January 3, 2010.<br />
The assets <strong>of</strong> the non-registered plan consist <strong>of</strong> investments and refundable tax on account with Canada<br />
Revenue Agency. The investments are in pooled funds with an allocation <strong>of</strong> 61% equities, 38% bonds<br />
and 1% cash and cash equivalents based on market values as at November 30, 2010 and 60% equities,<br />
39% bonds and 1% cash and cash equivalents based on market values as at November 30, 2009. There<br />
were no significant changes in the allocation <strong>of</strong> investments between November 30, 2010 and January 1,<br />
2011 and between November 30, 2009 and January 3, 2010.<br />
23. PROVISIONS<br />
Provisions are comprised as follows:<br />
Balance at January 3, 2010 $ 12,071<br />
Provisions made during the financial year 12,341<br />
Provisions used during the financial year (9,817)<br />
Provisions reversed during the financial year (306)<br />
Unwind <strong>of</strong> discount 125<br />
Balance at January 1, 2011 $ 14,414<br />
Balance at January 1, 2011, presented as follows:<br />
Accounts payable and accrued liabilities $ 12,563<br />
Other long-term liabilities 1,851<br />
$ 14,414<br />
Balance at January 3, 2010, presented as follows:<br />
Accounts payable and accrued liabilities $ 11,009<br />
Other long-term liabilities 1,062<br />
$ 12,071<br />
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