ENBRIDGE 2000 ANNU AL REPORT 51 Stock Based Compensation Post-employment Benefits Disclosure U.S. GAAP requires the measurement and recognition of compensation expense related to certain stock-based compensation. The Company has accounted for stock-based compensation for U.S. GAAP purposes in accordance with APB 25, “Accounting for Stock Issued to Employees.” The difference between compensation expense measured in accordance with APB 25 and the amount which would have been recognized under Statement of Financial Accounting Standards No. 123, “Accounting for Stock-based Compensation,” is not material. In 1999, post-employment benefits were accounted for using the cost method under Canadian GAAP and the accrual method under U.S. GAAP. Commencing in 2000, the Company uses the accrual method in its Canadian GAAP financial statements. The tables below detail the changes in the benefit obligation, the fair value of plan assets and the recorded asset or liability using the accrual method. (millions of dollars) OPEB Pension Benefit 2000 1999 2000 1999 Benefit obligation, January 1 119.4 112.0 634.0 634.7 Service cost 3.5 3.9 18.0 19.5 Interest cost 7.7 7.7 43.3 41.8 Amendments (0.1) — 0.7 — Employee contributions 0.2 0.3 5.3 5.6 Actuarial (gain)/loss (15.0) 0.2 (19.2) (32.5) Benefits paid (2.9) (3.0) (32.9) (30.8) Effect of exchange rate changes 0.7 (1.7) 2.0 (4.3) Benefit obligation, December 31 113.5 119.4 651.2 634.0 Fair value of plan assets, January 1 20.0 18.4 1,034.0 896.3 Actual return on plan assets 1.0 0.3 206.8 146.9 Employer’s contributions 5.0 5.0 0.9 7.5 Employee contributions 0.2 0.3 5.3 5.6 Benefits paid (2.9) (3.0) (32.9) (30.8) Other — — — 17.5 Effect of exchange rate changes 0.5 (1.0) 4.7 (9.0) Fair value plan assets, December 31 23.8 20.0 1,218.8 1,034.0 Plan assets in excess/(deficiency) of projected benefit obligations (89.7) (99.4) 567.6 400.0 Unrecognized prior service cost 0.9 7.8 7.2 7.2 Unrecognized plan surplus/(obligation) 52.1 41.7 — (2.2) Unrecognized net (gain)/loss (4.3) 10.4 (383.6) (231.3) Recorded asset/(liability) (41.0) (39.5) 191.2 173.7