Notes to consolidated financial statements  September 27, 2014 and September 28, 2013 (Millions of dollars, unless otherwise indicated) Employee benefits also include post-employment benefits which comprise pension benefits (both defined benefit and  defined  contribution plans) and ancillary benefits such as post-employment life and medical insurance. Employee benefits  also  comprise other long-term benefits, namely long-term disability benefits not covered by insurance plans and ancillary  benefits  provided to employees on long-term disability. Assets and obligations related to employee defined benefit plans,  ancillary  retirement benefits and other long-term benefits plan are accounted for using the following accounting policies:  • Defined benefit obligations and the cost of pension, ancillary retirement benefits and other long-term benefits earned  by participants are determined from actuarial calculations according to the projected credit unit method. The  calculations are based on management’ s best assumptions relating to salary escalation, retirement age of  participants,  inflation  and  expected  health  care costs. • Defined  benefit obligations are discounted using high-quality corporate bond yield rates with cash flows that match  the  timing and  amount  of expected  benefit  payments. • Defined  benefit plan assets or liabilities recognized in the consolidated statement of financial position correspond  to the dif ference  between the present value of defined benefit obligations and the fair value of plan assets. Plan  assets  are measured at fair value. In the case of a surplus funded plan, these assets are limited at the lesser of the  actuarial value determined for accounting purposes or the value of the future economic benefit by way of surplus  refunds or contribution holidays. Furthermore, an additional liability could be recorded when minimum funding  requirements  for past services exceed economic  benefits  available.  • The interest expense on defined benefit obligations, on the asset ceiling and on the minimum funding requirement  is  net of interest income on plan assets, which is calculated by applying the same rate used to evaluate the obligations,  and is  recognized  as  financing  costs. • Actuarial gains or losses on pension plans and ancillary post-employment benefits arise from changes to current  year end actuarial assumptions used to determine the defined benefit obligations.  They  also arise from variances  between the experience adjustments of the plans for the current year and the assumptions defined at the end of  the  previous fiscal year to determine the employee benefit expense for the current fiscal year and the defined benefit  obligations at  the previous  fiscal  year end. • Remeasurements of defined benefit net liabilities include actuarial gains or losses, the yield on plan assets, and  asset ceiling and minimum funding requirement changes, excluding the amount already recorded in net interest.  Remeasurements are recognized under other comprehensive income during the period in which they occur and  reclassified from  accumulated  other  comprehensive  income to  retained  earnings  at the end  of  each  period. • Past service amendment costs are recognized  immediately  in  net  earnings. • Actuarial  gains  or  losses  to other  long-term  employee benefits  are  recognized  in full  immediately  in  net  earnings. • Defined contribution plan costs, including those of multi-employer plans, are recorded when the contributions are  due.  As sufficient information to reliably determine multi-employer defined benefit plan obligations and assets is not  available and as there is no actuarial valuation according to IFRS, these plans are accounted for as defined  contribution  plans. The Corporation is required to pay the contributions negotiated in collective bargaining. The vast  majority  of contributions to multi-employer plans are paid into the Canadian Commercial Workers Industry Pension  Plan (CCWIPP). The Corporation and its franchisees represent approximately 25% of the Plan’ s  total number of  participants. Provisions Other financial liabilities Provisions are recognized when the Corporation has a present obligation (legal or constructive) resulting from a past  event,  will likely have to settle the obligation and the amount of which can be reliably estimated. The amount recognized  as provision is the best estimate of the expense required to settle the present obligation at the closing date. When a  provision is measured based on estimated cash flows required to settle the present obligation, its carrying amount is  the  discounted value  of  these cash  flows. Present obligations resulting from onerous contracts are accounted for and measured as provisions.  A  contract is said  to  be onerous when the costs involved in fulfilling the terms and conditions of the contract are higher than the contract's  expected economic benefits. Bank  loans, accounts payable, credit facility, notes and loans payable are classified as “Other financial liabilities”. After  their initial fair value measurement, they are measured at amortized cost using the ef fective  interest method. For the  Corporation, the  measured amount generally corresponds  to  cost. - 51 -