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Shaw Communications Inc.
Notes to the Consolidated Financial Statements
August 31, 2015 and 2014
[all amounts in millions of canadian dollars except share and per share amounts]
Deferred share unit plan
The Company has a DSU plan for its Board of Directors whereby directors can elect to receive their annual cash compensation,
or a portion thereof, in DSUs. In addition, the Company may adjust and/or supplement directors’ compensation with periodic
grants of DSUs. A DSU is a right that tracks the value of one Class B Non-Voting Share. Holders will be entitled to a cash
payout when they cease to be a director. The cash payout will be based on market value of a Class B Non-Voting Share at the
time of payout. When cash dividends are paid on Class B Non-Voting Shares, holders are credited with DSUs equal to the
dividend. DSUs do not have voting rights as there are no shares underlying the plan.
During 2015, $2 was recognized as compensation expense (2014 – $3). The carrying value and intrinsic value of DSUs at
August 31, 2015 was $15 and $13, respectively (August 31, 2014 – $13 and $11, respectively).
Employee share purchase plan
The Company’s ESPP provides employees with an incentive to increase the profitability of the Company and a means to
participate in that increased profitability. Generally, all non-unionized full time or part time employees of the Company are
eligible to enroll in the ESPP. Under the ESPP, eligible employees may contribute to a maximum of 5% of their monthly base
compensation. The Company contributes an amount equal to 25% of the employee’s contributions.
During 2015, $6 was recorded as compensation expense (2014 – $5).
Share appreciation rights
A subsidiary of the Company grants SARs to eligible employees of ViaWest. A SAR entitles the holder to the appreciation in
value of one share of ViaWest over the exercise price over a period of time. SARs granted to ViaWest employees post-acquisition
vest 25% per year over four years, have a 10 year contractual term and are cash settled. During 2015, $4 was recognized as
compensation expense. The carrying value of SARs liabilities, including the SARs granted as partial consideration for the
acquisition of ViaWest (see note 3), at August 31, 2015 was $13. At August 31, 2015, no SARs had vested.
18. EARNINGS PER SHARE
Earnings per share calculations are as follows:
2015 2014
Numerator for basic and diluted earnings per share ($)
Net income 880 887
Deduct: net income attributable to non-controlling interests in subsidiaries (24) (30)
Deduct: dividends on Series A Preferred Shares (14) (14)
Net income attributable to common shareholders 842 843
Denominator (millions of shares)
Weighted average number of Class A Shares and Class B Non-Voting Shares for basic earnings per share 468 457
Effect of potentially dilutive securities(1) 32
Weighted average number of Class A Shares and Class B Non-Voting Shares for diluted earnings per share 471 459
Earnings per share ($)
Basic 1.80 1.84
Diluted 1.79 1.84
(1) The earnings per share calculation does not take into consideration the potential dilutive effect of certain stock options
since their impact is anti-dilutive. For the year ended August 31, 2015, 2,548,433 options were excluded from the
diluted earnings per share calculation (2014 – 1,729,227).
2015 Annual Report Shaw Communications Inc. 85