Shaw 2011 Annual Report Download - page 109

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Shaw Communications Inc.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
August 31, 2011, 2010 and 2009
[all amounts in thousands of Canadian dollars except share and per share amounts]
The following table summarizes information about the options outstanding at August 31, 2011:
Options outstanding Options exercisable
Range of prices
Number
outstanding
Weighted
average
remaining
contractual
life
Weighted
average
exercise
price
Number
exercisable
Weighted
average
remaining
contractual
life
Weighted
average
exercise
price
$ 8.69 20,000 2.14 $ 8.69 20,000 2.14 $ 8.69
$14.85 – $22.27 14,594,400 7.15 $19.13 7,303,650 5.72 $18.31
$22.28 – $26.20 7,356,000 6.01 $24.49 5,839,375 6.01 $24.45
The total intrinsic value of options exercised during 2011 was $11,890 (2010 – $11,112;
2009 – $15,801) and the aggregate intrinsic value of exerciseable in-the-money options at
August 31, 2011 is $30,211.
The weighted average estimated fair value at the date of the grant for common share options
granted for the year ended August 31, 2011 was $3.13 (2010 – $2.94; 2009 – $3.02) per
option. The fair value of each option granted was estimated on the date of the grant using the
Black-Scholes Option Pricing Model with the following weighted-average assumptions:
2011 2010 2009
Dividend yield 4.32% 4.52% 4.28%
Risk-free interest rate 2.19% 2.52% 1.94%
Expected life of options 5 years 5 years 5 years
Expected volatility factor of the future expected market price of
Class B Non-Voting Shares 25.8% 25.9% 26.5%
Contributed surplus
The changes in contributed surplus are as follows:
2011 2010
$$
Balance, beginning of year 53,330 38,022
Stock-based compensation 16,631 17,838
Stock options exercised (4,463) (2,530)
Balance, end of year 65,498 53,330
As at August 31, 2011, the total unamortized compensation cost related to unvested options is
$19,226 with a remaining weighted average amortization period of approximately 3.2 years.
Restricted share unit plan
During 2011, the Company implemented a restricted share unit plan whereby RSUs are granted
to eligible employees and officers of the Company. An RSU is a right that tracks the value of
one Class B Non-Voting Share and permits the holder to receive a cash payment equal to the
market value once RSUs are vested. Market value is determined by the average of the closing
prices of the Class B Non-Voting Shares on the Toronto Stock Exchange for the five trading days
preceding the applicable payment date as determined by the Company. When cash dividends
105