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## NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 

Years ended December 31, 2011 and 2010 (In thousands of Canadian dollars, except share and per share information) 

Actuarial losses recognized directly in equity are as follows: 

<img src='content_image/209229.jpg'>

Plan assets consist of the following: 

<img src='content_image/209228.jpg'>

No plan assets are directly invested in the Company’s own shares or directly in any property occupied by, or other assets used by, the Company. 

The expected rates of return on assets are based on long-term expected rates of return for a portfolio invested in accordance with the plans’ target asset mix and include consideration of long-term historical returns. The Company considers input from its investment advisors and actuaries when determining the rates. While the Company believes equities offer the best return over the long-term, it also believes diversification is necessary and invests in bonds, hedge funds, property and cash as well. 

The actual returns on plan assets are as follows: 

<img src='content_image/209227.jpg'>

The weighted average economic assumptions used to determine post-employment benefit obligations are as follows: 

<img src='content_image/209226.jpg'>

