Telus 2010 Annual Report Download - page 148

144 . TELUS 2010 annual report
With respect to certain issuances of restricted stock units, the Company entered into cash-settled equity forward agreements that fix the cost to
the Company; that information, as well as a schedule of the Company’s non-vested restricted stock units outstanding as at December 31, 2010, is set
out in the following table.
Number of Cost fixed to Number of Total number
fixed-cost the Company variable-cost of non-vested
restricted per restricted restricted restricted
stock units stock unit stock units stock units
Vesting in years ending December 31:
2 011 390,000 $ß33.79
50,000 $ß44.43
440,000 184,857 624,857
2012 420,000 $ß35.91
100,000 $ß46.01
520,000 214,209 734,209
960,000 399,066 1,359,066
(e) Unrecognized, non-vested share-based
compensation
As at December 31, 2010, compensation cost related to non-vested
share-based compensation that has not yet been recognized is set out
in the following table and is expected to be recognized over a weighted
average period of 1.7 years (2009 – 1.6 years).
As at December 31 (millions)(1) 2010 2009
Share option awards $ß 9 $ß12
Restricted stock units(2) 27 22
$ß36 $ß34
(1) These disclosures are not likely to be representative of the effects on reported net
income for future periods for the following reasons: these amounts reflect an estimate
of forfeitures; these amounts do not reflect any provision for future awards; these
amounts do not reflect any provision for changes in the intrinsic value of vested
restricted stock units; these amounts do not reflect any provision for the impacts of
future, if any, modification of share option awards allowing for net-cash settlement;
and for non-vested restricted stock units, these amounts reflect intrinsic values as
at the statement of financial position dates.
(2) The compensation cost that has not yet been recognized in respect of non-vested
restricted stock units is calculated based upon the intrinsic value of the non-vested
restricted stock units as at the statement of financial position dates, net of the
impacts of associated cash-settled equity forward agreements.
(d) Employee share purchase plan
The Company has an employee share purchase plan under which eligible
employees up to a certain job classification can purchase Common
Shares through regular payroll deductions by contributing between 1%
and 10% of their pay; for more highly compensated job classifications,
employees may contribute between 1% and up to 55% of their pay.
For every dollar contributed by an employee, up to a maximum of 6%
o f eligible employee pay, the Company is required to contribute a
percentage between 20% and 40% as designated by the Company.
For the year ended December 31, 2010, the Company contributed
40% (2009 – 40%) for employees up to a certain job classification; for
more highly compensated job classifications, the Company contributed
35% (2009 – 35%). The Company records its contributions as a com-
ponent of operating expenses and, prior to fiscal 2010, there were no
vesting requirements. Subsequent to 2009, the Company’s contribution
vests on the earlier of a plan participant’s last day in the Company’s
employ or the last business day of the calendar year of the Company’s
contribution, unless the plan participant’s employment was terminated
with cause, in which case the plan participant will forfeit their in-year
Company contribution.
Years ended December 31 (millions) 2010 2009
Employee contributions $ß 73 $ß 79
Company contributions 27 29
$ß100 $ß108
Under this plan, the Company has the option of offering shares from
Treasury or having the trustee acquire shares in the stock market. For the
years ended December 31, 2010 and 2009, all Common Shares issued
to employees under the plan were purchased in the stock market at
normal trading prices.