MANAGEMENT’S TORSTAR CORPORATION interest rate collar agreement, the company established a Canadian dollar weighted average interest rate range for 2004 of 2.7% to 3.4%. The collar applied to $250 million of the company’s Canadian dollar debt during the first quarter of 2004 and was reduced by $30 million each quarter for the remainder of 2004. This arrangement ended in December 2004. Class B shares are non-voting unless eight  consecutive quarterly dividends have not been paid. (ii) Voting provisions (i) Class A (voting) and Class B (non-voting) shares Class A and Class B shareholders may elect to receive dividends in cash or stock dividends in the form of Class B shares. Class A shares are convertible at any time at the option of the holder into Class B shares.  (a) Rights attaching to the company’s share capital: (d) The company entered into an interest rate swap arrangement that will fix the interest rate on  U.S. $80 million of borrowings at approximately 3.5% for four years beginning December 2003. The fair value of the U.S. interest rate swap arrangement was $0.3 million favourable at December 31, 2004. For Canadian dollar debt, through the use of an  (c) Medium Term Notes (iii) Commercial paper outstanding at December 31, 2004 included U.S. dollar borrowings of  U.S. $96.4 million (December 31, 2003 – U .S. $106.3 million). The average rate on U.S. dollar commercial paper outstanding at December 31, 2004 was 2.3% (December 31, 2003 – 1.1%). Including the effect of the interest rate swap noted in 6(d) the effective rate was 3.3% at December 31, 2004 (December 31, 2003 – 2.9%). (ii) The average rate on Canadian dollar commercial paper outstanding at December 31, 2004 was 2.5% (December 31, 2003 – 2.9%, see note 6 (d)). (f) Interest expense includes interest on long-term debt of $11,319 (2003 – $13,034). (g) Interest of $13,119 was paid during the year  (2003 – $12,934). (e) The company is exposed to credit related losses in the event of non-performance by counterparties to the above described derivative instruments, but it does not anticipate any counterparties to fail to meet their obligations given their high credit ratings. The company has a policy of only accepting major financial institutions, as approved by the Board of Directors,  as counterparties.  (i) facility exists for the company to issue  short-term notes in the form of commercial paper. These notes may be issued in Canadian or U .S. dollars to an authorized aggregate principal amount of Canadian $550 million outstanding at any one time. While the terms of the individual notes are less than one year they have been  classified as long-term as it is intended that the commercial paper program will be an ongoing source of financing and up to $450 million of the outstanding notes could be replaced at any time by bank debt as noted in (a)(iii) above. (b) Commercial paper On September 19, 2003 and September 23, 2003, the Company issued respectively Canadian $35 million and $1 million of floating rate notes maturing September 19, 2005. Interest is based on 90 day bankers’ acceptance rates plus 0.39%. Interest is paid quarterly The notes, which mature in 2005, have been classified as long-term debt as the company has the ability and intent to refinance these amounts under existing credit facilities. The effective interest rate on the medium term notes outstanding at December 31, 2004 was 3.1% (December 31, 2003 – 3.2%, see note 6(d)).  7. OTHER LIABILITIES 2004 2003 Post employment  benefits (note 12) $67,607 $73,578 Employees' shares  subscribed (note 9) 9,139 8,385 Deferred share unit  plan (note 9) 2,061 802 Other 4,370 4,409 $83,177 $87,174 8. SHARE CAPITAL 51 TORSTAR 2004