Bank of Montreal 2012 Annual Report Download - page 159

Notes
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Note 20: Share Capital
Outstanding
(Canadian $ in millions, except as noted) 2012 2011
November 1,
2010
Number
of shares Amount
Dividends
declared
per share
Number
of shares Amount
Dividends
declared
per share
Number
of shares Amount
Dividends
declared per
share
Preferred Shares – Classified as Equity
Class B – Series 5 8,000,000 200 1.33 8,000,000 200 1.33 8,000,000 200 1.33
Class B – Series 10 (1) –– –12,000,000 396 1.49 12,000,000 396 1.49
Class B – Series 13 14,000,000 350 1.13 14,000,000 350 1.13 14,000,000 350 1.13
Class B – Series 14 10,000,000 250 1.31 10,000,000 250 1.31 10,000,000 250 1.31
Class B – Series 15 10,000,000 250 1.45 10,000,000 250 1.45 10,000,000 250 1.45
Class B – Series 16 12,000,000 300 1.30 12,000,000 300 1.30 12,000,000 300 1.30
Class B – Series 18 6,000,000 150 1.63 6,000,000 150 1.63 6,000,000 150 1.63
Class B – Series 21 11,000,000 275 1.63 11,000,000 275 1.63 11,000,000 275 1.63
Class B – Series 23 16,000,000 400 1.35 16,000,000 400 1.35 16,000,000 400 1.35
Class B – Series 25 11,600,000 290 0.98 11,600,000 290 0.69 – – –
2,465 2,861 2,571
Common Shares
Balance at beginning of year 638,999,563 11,332 566,468,440 6,927 551,715,904 6,198
Issued under the Shareholder Dividend
Reinvestment and Share Purchase Plan 9 ,738,842 543 2,947,748 179 9,749,878 537
Issued/cancelled under the Stock Option Plan
and other Stock-Based Compensation Plans
(Note 22) 1 ,763,389 80 3,039,597 122 5,002,174 192
Issued on the exchange of shares of a
subsidiary corporation 227,850 2 24,105 1 484 –
Issued on the acquisition of a business (Note 12) –– 66,519,673 4,103 – –
Balance at end of year 650,729,644 11,957 2.82 638,999,563 11,332 2.80 566,468,440 6,927 2.80
Share Capital 14,422 14,193 9,498
(1) Dividend amounts in U.S. dollars. During the year ended October 31, 2012, we redeemed all of our Class B – Series 10 Preferred shares. Dividends declared for the year were $0.37 per share and
12,000,000 shares were outstanding at the time of dividend declaration.
Preferred Shares
We are authorized by our shareholders to issue an unlimited number of
Class A Preferred shares and Class B Preferred shares without par value,
in series, for unlimited consideration. Class B Preferred shares may be
issued in a foreign currency.
During the year ended October 31, 2012, we redeemed all of our
U.S. dollar-denominated Non-cumulative Class B Preferred Shares, Series
10, at a price of US$25.00 per share plus all declared and unpaid
dividends up to but excluding the date fixed for redemption. We
recognized a gain of $96 million in contributed surplus related to
changes in the Canadian to U.S. dollar exchange rate upon redemption.
During the year ended October 31, 2011, we issued 11,600,000
3.9% Non-cumulative 5-year Rate Reset Class B Preferred shares,
Series 25, at a price of $25.00 per share, representing an aggregate
issue price of $290 million.
Preferred Share Rights and Privileges
Class B – Series 5 shares are redeemable at our option starting
February 25, 2013 for $25.00 cash per share, and are not convertible.
The shares carry a non-cumulative quarterly dividend of $0.33125 per
share.
Class B – Series 13 shares are redeemable at our option starting
February 25, 2012 for $25.00 cash per share, plus a premium if we
redeem the shares before February 25, 2016. The shares carry a non-
cumulative quarterly dividend of $0.28125 per share.
Class B – Series 14 shares are redeemable at our option starting
November 25, 2012 for $25.00 cash per share, plus a premium if we
redeem the shares before November 25, 2016. The shares carry a non-
cumulative quarterly dividend of $0.328125 per share.
Class B – Series 15 shares are redeemable at our option starting May 25,
2013 for $25.00 cash per share, plus a premium if we redeem the
shares before May 25, 2017. The shares carry a non-cumulative
quarterly dividend of $0.3625 per share.
Class B – Series 16 shares are redeemable at our option on August 25,
2013 and every five years thereafter for $25.00 cash per share. If the
shares are not redeemed on the redemption dates, investors have the
option to convert the shares into Class B – Series 17 Preferred shares
and, if converted, have the option to convert back to Series 16 Preferred
shares on subsequent redemption dates. The Series 16 shares carry a
non-cumulative quarterly dividend of $0.325 per share until August 25,
2013. Dividends payable after August 25, 2013 on the Series 16 and
Series 17 Preferred shares will be set based on prevailing market rates
plus a predetermined spread.
Class B – Series 18 shares are redeemable at our option on February 25,
2014 and every five years thereafter for $25.00 cash per share. If the
shares are not redeemed on the redemption dates, investors have the
option to convert the shares into Class B – Series 19 Preferred shares
and, if converted, have the option to convert back to Series 18 Preferred
shares on subsequent redemption dates. The Series 18 shares carry a
non-cumulative quarterly dividend of $0.40625 per share until
February 25, 2014. Dividends payable after February 25, 2014 on the
Series 18 and Series 19 Preferred shares will be set based on prevailing
market rates plus a predetermined spread.
156 BMO Financial Group 195th Annual Report 2012