(1) The SERP assumptions are that
months after retirement at the end of the current term of his employment
Company that he intends to retire at that time.
(2) Interest on the Credit Facility is payable monthly in arrears based on the
applicable variable rate and is not included above.
(3) The Company's total minimum annual rental payments to be made under operating
leases, mostly consisting of rent at the Company's properties in
(4) The Company's total payments to be made under binding commitments with
suppliers and outstanding payments to be made for supplies ordered but yet to
reduce future benefits provided under the plan. As a result of this change,
the Company's postretirement liability was reduced by
in a pre-tax curtailment gain in the first quarter of 2013 of
(6) The Company's total minimum annual payments to be made under capital leases,
mostly consisting of payments for IT hardware and various other fixed assets.
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Pension and Postretirement Obligations
The Company has an unfunded defined benefit pension plan (the "SERP") covering Messrs. Gelfond and Wechsler. As at
June 30, 2013, the Company had an unfunded and accrued projected benefit obligation of approximately $20.5 million( December 31, 2012- $20.4 million) in respect of the SERP. On August 1, 2010, the Company made a lump sum payment to Mr. Wechslerin accordance with the terms of the plan, representing a settlement of Mr. Wechsler'sentitlement under the SERP. Under the terms of the SERP, if Mr. Gelfond'semployment is terminated other than for cause (as defined in his employment agreement), he is entitled to receive SERP benefits in the form of a lump sum payment. SERP benefit payments to Mr. Gelfondare subject to a deferral for six months after the termination of his employment, at which time Mr. Gelfondwill be entitled to receive interest on the deferred amount credited at the applicable federal rate for short-term obligations. The term of Mr. Gelfond'scurrent employment agreement has been extended through December 31, 2013, although Mr. Gelfondhas not informed the Company that he intends to retire at that time. Under the terms of the extension, Mr. Gelfondalso agreed that any compensation earned during 2011, 2012 and 2013 would not be included in calculating his entitlement under the SERP. The Company has a postretirement plan to provide health and welfare benefits to Canadian employees meeting certain eligibility requirements. As at June 30, 2013, the Company had an unfunded benefit obligation of $2.0 million( December 31, 2012- $4.6 million). In February 2013, the Company amended the Canadian postretirement plan to reduce future benefits provided under the plan. As a result of this change, the Company's postretirement liability was reduced by $2.6 million, resulting in a pre-tax curtailment gain in the first quarter of 2013 of $2.2 million. See note 4 to the audited consolidated financial statements in Item 8 of the Company's 2012 Form 10-K for additional details. In July 2000, the Company agreed to maintain health benefits for Messrs. Gelfond and Wechsler upon retirement. As at June 30, 2013, the Company had an unfunded benefit obligation of $0.5 million( December 31, 2012- $0.5 million).
OFF-BALANCE SHEET ARRANGEMENTS
There are currently no off-balance sheet arrangements that have or are reasonably likely to have a current or future material effect on the Company's financial condition.