Rogers 2009 Annual Report Download - page 113

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ROGERS COMMUNICATIONS INC. 2009 ANNUAL REPORT 117
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
In 2008, the Company repurchased for cancellation 4,000,000 of
its outstanding Class B Non-Voting shares pursuant to private
agreements between the Company and an arm’s length third
party seller for an aggregate purchase price of $133.8 million. As
a result of these purchases, the Company recorded a reduction
to stated capital, contributed surplus and retained earnings of
$3.7 million, $126.1 million and $4.0 million, respectively. Each of
these purchases was made under issuer bid exemption orders
issued by the Ontario Securities Commission and will be included
in calculating the number of Class B Non-Voting shares that the
Company may purchase pursuant to the NCIB. In addition, the
Company repurchased for cancellation an aggregate 77,400 of its
outstanding Class B Non-Voting shares directly under the NCIB for
an aggregate purchase price of $2.9 million, resulting in a reduction
to stated capital, contributed surplus and retained earnings of
$0.1 million, $2.7 million and $0.1 million, respectively.
At December 31, 2009, the Company had a liability of $178 million
(2008 – $278 million), of which $164 million (2008 – $267 million) is
a current liability related to stock-based compensation recorded at
its intrinsic value, including stock options, restricted share units and
deferred share units. During the year ended December 31, 2009,
$63 million (2008 – $106 million) was paid to holders upon
exercise of restricted share units and stock options using the cash
settlement feature.
(A) STOCK OPTIONS:
(i) Stock option plans:
Options to purchase Class B Non-Voting shares of the Company
on a one-for-one basis may be granted to employees, directors
and officers of the Company and its affiliates by the Board of
Directors or by the Company’s Management Compensation
Committee. There are 30 million options authorized under the
2000 Plan, 25 million options authorized under the 1996 Plan,
and 9.5 million options authorized under the 1994 Plan. The
term of each option is 7 to 10 years and the vesting period is
generally four years but may be adjusted by the Management
Compensation Committee on the date of grant. The exercise
price for options is equal to the fair market value of the Class B
Non-Voting shares determined as the five-day average before
the grant date as quoted on the TSX.
19. STOCK-BASED COMPENSATION:
(D) ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS):
2009 2008
Unrealized gain on available-for-sale investments $ 219 $ 205
Unrealized loss on cash flow hedging instruments (256) (377)
Related income taxes 80 77
$ 43 $ (95)
Stock options, share units and share purchase plans:
A summary of stock-based compensation expense (recovery), which is
included in operating, general and administrative expense, is as follows:
2009 2008
Stock-based compensation:
Stock options (a) $ (38) $ (104)
Restricted share units (b) 77
Deferred share units (c) (2) (3)
$ (33) $ (100)