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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
DIVIDENDS
In 2015 and 2014, we declared and paid the following dividends
on our outstanding Class A Voting and Class B Non-Voting shares:
Date declared Date paid
Dividend per
share (dollars)
January 28, 2015 April 1, 2015 0.48
April 21, 2015 July 2, 2015 0.48
August 13, 2015 October 1, 2015 0.48
October 22, 2015 January 4, 2016 0.48
1.92
February 12. 2014 April 4, 2014 0.4575
April 22, 2014 July 2, 2014 0.4575
August 14, 2014 October 1, 2014 0.4575
October 23, 2014 January 2, 2015 0.4575
1.83
The holders of Class A shares are entitled to receive dividends at
the rate of up to five cents per share but only after dividends at the
rate of five cents per share have been paid or set aside on the
Class B shares. Class A Voting and Class B Non-Voting shares
therefore participate equally in dividends.
On January 27, 2016, the Board of Directors declared a quarterly
dividend of $0.48 per Class A Voting share and Class B Non-Voting
share, to be paid on April 1, 2016, to shareholders of record on
March 13, 2016.
NOTE 25: STOCK-BASED COMPENSATION
ACCOUNTING POLICY
Stock option plans
Cash-settled share appreciation rights (SARs) are attached to all
stock options granted under our employee stock option plan. This
feature allows the option holder to choose to receive a cash
payment equal to the intrinsic value of the option (the amount by
which the market price of the Class B Non-Voting share exceeds
the exercise price of the option on the exercise date) instead of
exercising the option to acquire Class B Non-Voting shares. We
classify all outstanding stock options with cash settlement features
as liabilities and carry them at their fair value, determined using the
Black-Scholes option pricing model or trinomial option pricing
models, depending on the nature of the share-based award. We
remeasure the fair value of the liability each period and amortize it
to operating costs using graded vesting, either over the vesting
periodortothedateanemployeeiseligibletoretire(whicheveris
shorter).
Restricted share unit (RSU) and deferred share unit (DSU) plans
We recognize outstanding RSUs and DSUs as liabilities, measuring
the liabilities and compensation costs based on the awards’ fair
values, which are based on the market price of the Class B Non-
Voting shares, and recognizing them as charges to operating costs
over the vesting period of the awards. If an award’s fair value
changes after it has been granted and before the exercise date, we
recognize the resulting changes in the liability as a charge to
operating costs in the year the change occurs. For RSUs, the
payment amount is established as of the vesting date. For DSUs,
the payment amount is established as of the exercise date.
Employee share accumulation plan
Employees voluntarily participate in the share accumulation plan by
contributing a specified percentage of their regular earnings. We
match employee contributions up to a certain amount and
recognize our contributions as a compensation expense in the year
we make them. Expenses relating to the employee share
accumulation plan are included in operating costs.
USE OF ESTIMATES AND JUDGMENTS
ESTIMATES
Significant management estimates are used to determine the fair
value of stock options, RSUs, and DSUs. The table below shows the
weighted-average fair value of stock options granted during 2015
and 2014, and the principal assumptions used in applying the
Black-Scholes model for non-performance-based options and
trinomial option pricing models for performance-based options to
determine their fair value at grant date:
Years ended December 31
2015 2014
Weighted average fair value $4.65$7.35
Risk-free interest rate 1.1% 1.2%
Dividend yield 4.5% 4.0%
Volatility of Class B Non-Voting shares 22.0% 25.7%
Weighted average expected life n/a n/a
Weighted average time to vest 2.4 years 2.4 years
Weighted average time to expiry 9.9 years 9.9 years
Employee exit rate 3.9% 3.9%
Suboptimal exercise factor 1.5 1.6
Lattice steps 50 50
Volatility has been estimated based on the actual trading statistics
of our Class B Non-Voting shares.
130 ROGERS COMMUNICATIONS INC. 2015 ANNUAL REPORT