Shaw 2012 Annual Report Download - page 80

Download and view the complete annual report

Please find page 80 of the 2012 Shaw 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 134

  • 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
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134

Shaw Communications Inc.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
August 31, 2012 and 2011
[all amounts in millions of Canadian dollars except share and per share amounts]
August 31 is the measurement date for the Company’s employee benefit plans. The last
actuarial valuations for funding purposes for the various plans were performed between
December 31, 2011 and January 1, 2012. The next actuarial valuations for funding purposes
are effective December 31, 2012.
Share-based compensation
The Company has a stock option plan for directors, officers, employees and consultants to the
Company. The options to purchase shares must be issued at not less than the fair value at the
date of grant. Any consideration paid on the exercise of stock options, together with any
contributed surplus recorded at the date the options vested, is credited to share capital. The
Company calculates the fair value of share-based compensation awarded to employees using
the Black-Scholes option pricing model. The fair value of options are expensed and credited to
contributed surplus over the vesting period of the options using the graded vesting method.
The Company has a restricted share unit (“RSU”) plan for officers and employees of the
Company. RSUs vest on the second anniversary of the grant date and compensation is
recognized on a straight-line basis over the two year vesting period. RSUs will be settled in cash
and the obligation for RSUs is measured at the end of each period at fair value using the Black-
Scholes option pricing model and the number of outstanding RSUs.
The Company has a deferred share unit (“DSU”) plan for its Board of Directors. Compensation
cost is recognized immediately as DSUs vest when granted. DSUs will be settled in cash and
the obligation is measured at the end of each period at fair value using the Black-Scholes
option pricing model and the number of outstanding DSUs.
The Company has an employee share purchase plan (the “ESPP”) under which eligible
employees may contribute to a maximum of 5% of their monthly base compensation. The
Company contributes an amount equal to 25% of the participant’s contributions.
Earnings per share
Basic earnings per share is based on net income attributable to equity shareholders adjusted for
dividends on preferred shares and is calculated using the weighted average number of Class A
Shares and Class B Non-Voting Shares outstanding during the period. The Company uses the
treasury stock method of calculating diluted earnings per share. This method assumes that any
proceeds from the exercise of stock options and other dilutive instruments would be used to
purchase Class B Non-Voting Shares at the average market price during the period.
Guarantees
The Company discloses information about certain types of guarantees that it has provided,
including certain types of indemnities, without regard to whether it will have to make any
payments under the guarantees.
Estimation uncertainty and critical judgements
The preparation of consolidated financial statements in conformity with IFRS requires
management to make estimates and assumptions that affect the reported amounts of assets
and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated
financial statements and the reported amounts of revenues and expenses during the period.
76