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RECLAMATION PROVISION AND OTHER LIABILITIES (Tables)
12 Months Ended
Dec. 31, 2012
RECLAMATION PROVISION AND OTHER LIABILITIES  
Schedule of reclamation provision and other liabilities
  •  

    As at December 31,
   
    2012   2011  
   
Reclamation provision (note 6(a))   $101,753   $105,443  

Long-term portion of capital lease obligations (note 13(a))   12,108   26,184  

Pension benefits (note 6(b))   13,734   13,991  

Other   140   370  

Total   $127,735   $145,988  

Reconciliation of the beginning and ending carrying amounts of the Company's asset retirement obligations
  •  

   
    2012   2011    
   
Asset retirement obligations, beginning of year   $86,386   $91,641    

Current year additions and changes in estimate, net   1,495   (8,398 )  

Current year accretion   5,068   4,953    

Liabilities settled   (254 ) –    

Foreign exchange revaluation   1,655   (1,810 )  

Reclassification from long-term to current   (4,630 ) –    

Asset retirement obligations – long-term, end of year   $89,720   $86,386    

Components of net pension plan expense
  •  

      Years Ended December 31,
   
      2012     2011     2010  
   
Service cost – benefits earned during the year   $ 650   $ 996   $ 981  

Interest cost on projected benefit obligation     489     663     613  

Amortization of net transition asset     169     171     164  

Prior service cost     26     26     25  

Loss due to settlement     2,921     –     –  

Recognized net actuarial loss     340     245     –  

Net pension benefits expense   $ 4,595   $ 2,101   $ 1,783  

Schedule of funded status of Executives plan
  •  

   
      2012     2011    
   
Reconciliation of the market value of plan assets:                

Fair value of plan assets, beginning of year   $ 2,952   $ 2,443    

Agnico-Eagle's contribution     839     1,156    

Benefit payments     (520 )   (578 )  

Settlements     (961 )   –    

Effect of exchange rate changes     63     (69 )  

Fair value of plan assets, end of year     2,373     2,952    

Reconciliation of projected benefit obligation:                

Projected benefit obligation, beginning of year     14,370     12,041    

Service cost     650     996    

Interest cost     489     663    

Net actuarial loss     675     1,704    

Benefit payments     (520 )   (696 )  

Settlements     (5,148 )   –    

Effect of exchange rate changes     302     (338 )  

Projected benefit obligation, end of year     10,818     14,370    

Deficiency of plan assets compared with projected benefit obligation   $ (8,445 ) $ (11,418 )  

Net pension amount recognized in the consolidated balance sheet and valuation assumptions
  •  

      As at December 31,
   
      2012     2011  
   
Accrued employee benefit liability   $ 5,008   $ 7,292  

Accumulated other comprehensive loss:              

  Transition obligation     341     500  

  Prior service cost     52     76  

  Net actuarial loss     3,044     3,550  

Net liability   $ 8,445   $ 11,418  

Assumptions:              

Weighted average discount rate – net periodic pension cost     4.45%     5.20%  

Weighted average discount rate – projected benefit obligation     4.00%     4.45%  

Weighted average rate of compensation increase     3.00%     3.00%  

Estimated average remaining service life for the plan (in years)(i)     6.0     3.0  

  • Note:

    (i)
    Estimated average remaining service life for the Executives Plan was developed for individual senior officers.
Components expected to be recognized in accumulated other comprehensive loss
  • Executives Plan components expected to be recognized in accumulated other comprehensive loss in 2013:

Transition obligation   $170  

Prior service cost   26  

Net actuarial loss   327  

    $523  

Estimated benefit payments from Executives plan
  •  

Years ended December 31,:     Estimated Executives Plan
Benefit Payments
 

2013   $ 117  

2014   $ 116  

2015   $ 115  

2016   $ 114  

2017   $ 113  

2018 – 2022   $ 3,591  

Goldex mine
 
Environmental remediation liability  
Reconciliation of the beginning and ending carrying amounts of the environmental remediation liability
  •  

   
      2012     2011    
   
Environmental remediation liability – long-term, beginning of year   $ 19,057   $ –    

Environmental remediation liability – current, beginning of year     26,069     –    

Current year change in estimate     (36 )   51,736    

Liabilities settled     (21,450 )   (7,616 )  

Foreign exchange revaluation     579     1,006    

Reclassification from long-term to current     (12,186 )   (26,069 )  

Environmental remediation liability – long-term, end of year   $ 12,033   $ 19,057