Equity Derivatives
We use stock-based compensation derivatives (Equity Derivatives), to
hedge the market price appreciation risk of the RCI Class B Non-Voting
shares granted under our stock-based compensation programs. We use
Equity Derivatives for risk-management purposes only.
In 2013 we entered into Equity Derivatives for 5.7 million RCI Class B
Non-Voting shares with a weighted average price of $50.37. These
Equity Derivatives have not been designated as hedges for accounting
purposes, so we record changes in their fair value as a stock-based
compensation expense and offset a portion of the impact of changes in
the market price of RCI Class B Non-Voting shares in the accrued value
of the stock-based compensation liability for our stock-based
compensation programs.
2013 ANNUAL REPORT ROGERS COMMUNICATIONS INC. 63