Rogers 2010 Annual Report Download - page 108

Download and view the complete annual report

Please find page 108 of the 2010 Rogers annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 120

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
112 ROGERS COMMUNICATIONS INC. 2010 ANNUAL REPORT
(B) RESTRICTED SHARE UNITS:
(i) RSU plan:
The RSU plan enables employees, officers and directors of the
Company to participate in the growth and development of the
Company. Under the terms of the plan, RSUs are issued to the
participant and the units issued vest over a period not to exceed
three years from the grant date.
On the vesting date, the Company shall redeem all of the
participants’ RSUs in cash or by issuing one Class B Non-Voting
share for each RSU. The Company has reserved 4,000,000 Class B
Non-Voting shares for issuance under this plan. During the year
ended December 31, 2010, the Company granted 631,655 RSUs
(2009 – 431,185).
(ii) Performance RSUs:
During the year ended December 31, 2010, the Company granted
187,508 (2009 – nil) performance-based RSUs to certain key
executives. The number of units that vest and will be paid will be
within a range of 50% to 150% of the initial number granted
based upon the achievement of certain annual and three year
non-market targets.
At December 31, 2010, 1,616,370 (2009 – 1,060,223) RSUs and
performance RSUs were outstanding. These RSUs vest at the end
of three years from the grant date. Stock-based compensation
expense for the year ended December 31, 2010, related to these
RSUs, was $19 million (2009 – $7 million).
For RSUs measured at the Company’s December 31 share price of
Class B Non-Voting shares, unrecognized stock-based
compensation expense as at December 31, 2010 related to these
RSUs was $26 million (2009 – $17 million), and will be recorded in
the consolidated statements of income over the next three years.
(C) DEFERRED SHARE UNITS:
The DSU plan enables directors and certain key executives of the
Company to elect to receive certain types of remuneration in DSUs,
which are classified as a liability on the consolidated balance
sheets amounting to $23 million (2009 – $20 million). During the
year ended December 31, 2010, the Company granted 89,136
deferred share units (2009 – 110,516). At December 31, 2010,
664,169 (2009 – 613,777) DSUs were outstanding. Stock-based
compensation expense for the year ended December 31, 2010
related to these DSUs was $4 million (2009 – $2 million recovery).
There is no unrecognized compensation expense related to DSUs,
since these awards vest immediately when granted.
(D) EMPLOYEE SHARE ACCUMULATION PLAN:
The employee share accumulation plan allows employees to
voluntarily participate in a share purchase plan. Under the terms of
the plan, employees of the Company can contribute a specified
percentage of their regular earnings through payroll deductions.
The designated administrator of the plan then purchases, on a
monthly basis, Class B Non-Voting shares of the Company on the
open market on behalf of the employee. At the end of each month,
the Company makes a contribution of 25% to 50% of the employee’s
contribution in the month, which is recorded as compensation
expense. The administrator then uses this amount to purchase
additional shares of the Company on behalf of the employee, as
outlined above.
Compensation expense related to the employee share
accumulation plan amounted to $20 million (2009 – $17 million) for
the year ended December 31, 2010.
At December 31, 2010, the range of exercise prices, the weighted average
exercise price and the weighted average remaining contractual life are as
follows:
Options outstanding Options exercisable
Range of
exercise prices
Number
outstanding
Weighted
average
remaining
contractual
life (years)
Weighted
average
exercise
price
Number
exercisable
Weighted
average
exercise
price
$ 4.83 – $ 9.99 837,383 2.23 $ 7.53 837,383 $ 7.53
$ 10.00 – $ 11.99 1,765,688 2.61 10.44 1,765,688 10.44
$ 12.00 – $ 18.99 984,765 1.75 13.78 984,765 13.78
$ 19.00 – $ 24.99 1,248,748 2.15 22.62 1,248,748 22.62
$ 25.00 – $ 29.99 2,011,666 5.19 29.42 437,181 29.42
$ 30.00 – $ 37.99 1,574,527 6.02 34.12 77,605 32.11
$ 38.00 – $ 46.94 3,418,903 3.72 39.03 1,064,563 38.99
11,841,680 3.68 $ 26.42 6,415,933 $ 19.24