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2003 Annual ReportRogers Communications Inc. 97
Notes to Consolidated Financial Statements
14. EARNINGS PER SHARE:
The following table sets forth the calculation of basic and diluted earnings per share:
2003 2002
Numerator:
Net income for the year $ 129,193 $ 312,032
Distribution on Convertible Preferred Securities, net of income taxes (note 11(c)) (29,791) (20,262)
Accretion of Preferred Securities, net of income taxes (note 11(c)) – (27,592)
Accretion of Collateralized Equity Securities (note 11(c)) – (19,745)
Dividends accreted on Convertible Preferred Securities, net of income taxes (20,033) (19,177)
Dividends on Series E Preferred shares (note 11(c)) (11) –
Basic income for the year 79,358 225,256
Effect of dilutive securities:
Preferred Securities, net of income taxes – 29,822
Dividends on Series E Preferred shares (note 11(c)) 11 –
Diluted income for the year $ 79,369 $ 255,078
Denominator (in thousands):
Weighted average number of shares outstanding – basic 225,918 213,570
Effect of dilutive securities:
Employee stock options 3,565 3,614
Series E Preferred shares (note 11(c)) 126 136
Cable Atlantic (note 11(a)(iii)(b)) 825 1,329
Preferred Securities – 88,870
Weighted average number of shares outstanding – diluted 230,434 307,519
Earnings per share:
Basic $ 0.35 $ 1.05
Diluted 0.34 0.83
For 2003 and 2002, the effect of potentially dilutive securities, including the Convertible Debentures and the Convertible
Preferred Securities, were excluded from the computation of diluted earnings per share as their effect is anti-dilutive.
In addition, options totalling approximately 12.4 million (2002 – 9.3 million) that are anti-dilutive were excluded from the
calculation.
15. PENSIONS:
The Company maintains both contributory and non-contributory defined benefit pension plans that cover most of its
employees. The plans provide pensions based on years of service, years of contributions and earnings. The Company does
not provide any non-pension post-retirement benefits.
Actuarial estimates are based on projections of employees’ compensation levels at the time of retirement. Maximum
retirement benefits are primarily based upon career average earnings, subject to certain adjustments. The most recent
actuarial valuations were completed as at January 1, 2001.
The Company also provides supplemental unfunded pension benefits to certain executives. As at December 31,
2003, the accrued benefit obligation relating to these supplemental plans amounted to approximately $11.8 million and
related expense for 2003 was $3.1 million.
The estimated present value of accrued plan benefits and the estimated market value of the net assets available to
provide for these benefits calculated at September 30 for the year ended December 31 are as follows:
2003 2002
Plan assets, at fair value $ 336,138 $ 307,231
Accrued benefit obligations 368,184 336,267
Deficiency of plan assets over accrued benefit obligations (32,046) (29,036)
Employer contributions after measurement date 11,000 –
Unrecognized transitional obligation (57,983) (67,880)
Unamortized past service 5,803 6,632
Unamortized net actuarial loss 90,682 107,382
Deferred pension asset $ 17,456 $ 17,098