Cogeco 2010 Annual Report Download - page 66

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Consolidated Financial Statements COGECO CABLE INC. 2010 65
purpose of purchasing these shares on the stock market in order to guard against stock price fluctuation. The Corporation instructed the trustee
to purchase 62,436 subordinate voting shares of the Corporation on the stock market. These shares were purchased for cash consideration
aggregating $2,008,000 and are held in trust for the participants until they are fully vested. The Trust, considered as a variable interest entity, is
consolidated in the Corporation’s financial statements with the value of the acquired shares presented as subordinate voting shares held in
trust under the ISU Plan in reduction of capital stock. Compensation expense of $577,000 was recorded for the year ended August 31, 2010.
Under the ISU Plan, the following ISUs were granted by the Corporation and are outstanding as at August 31:
2010 2009
Outstanding, beginning of year – –
Granted 63,666 –
Distributed (5,027) –
Forfeited / Cancelled (1,230) –
Outstanding, end of year 57,409 –
Deferred share unit plan
The Corporation established a Deferred Share Unit Plan (“DSU Plan”) to assist in the attraction and retention of qualified individuals to serve on
the Board of Directors (“Board”) of the Corporation. Each existing or new member of the Board may elect to be paid a percentage of the annual
retainer in the form of deferred share units (“DSUs”) with the balance, if any, being paid in cash. The number of DSUs that a member is entitled
to receive is based on the average closing price of the subordinate shares on the Toronto Stock Exchange for the twenty consecutive trading
days immediately preceding the date preceding by one day the date of grant. Dividend equivalents are awarded with respect to DSUs in a
member’s account on the same basis as if the member was a shareholder of record of subordinate shares on the relevant record date, and the
dividend equivalents are credited to the individual’s account as additional DSUs. DSUs are redeemable upon an individual ceasing to be a
member of the Board or in the event of the death of the member. During the year, 4,422 (6,282 in 2009) deferred share units were issued to the
participants in connection with the DSU Plan. A compensation expense of $252,000 ($117,000 in 2009) was recorded for the year ended
August 31, 2010 related to this plan. Under the DSU plan, the following DSUs were issued by Cogeco Cable Inc. and are outstanding as at
August 31:
2010 2009
Outstanding, beginning of year 10,000 3,586
Issued 4,422 6,282
Dividend equivalents 169 132
Redeemed (3,736) –
Outstanding, end of year 10,855 10,000
15. Accumulated other comprehensive income
2010 2009
Translation of a
net investment in
self-sustaining
foreign
subsidiaries
Cash flow
hedges Total
Translation of a
net investment in
self-sustaining
foreign
subsidiaries
Cash flo
w
hedges Total
(in thousands of dollars) $ $ $ $$$
Balance, beginning of year 23,610 (4,029) 19,581 15,660 (306) 15,354
Other comprehensive income (loss) (8,171) 6,949 (1,222) 7,950 (3,723) 4,227
Balance, end of year 15,439 2,920 18,359 23,610 (4,029) 19,581