Pension
expense
fiscal 2013
Discount rate 5.10 % 4.50%
Impact of: 0.5 % increase $ (105) $ (11)
0.5% decrease 120 13
Rate of compensation increase 3.00 % 3.00%
Impact of: 0.25 % increase $ 14 $ 3
0.25% decrease (14) (2)
Mortality rate
Impact of: 1 year increase $ 26 $ 4
1 year decrease (27) (3)
Stock-Based Compensation
Stock Option Plans
Our employee stock option plans attach cash-settled share appreciation
rights (SARs) to all new and previously granted options. The SARs
feature allows the option holder to elect to receive in cash an amount
equal to the intrinsic value, instead of exercising the option and
acquiring Class B Non-Voting shares.
We measure stock-based compensation to employees at fair value. We
determine fair value of options using our Class B Non-Voting share
price and option pricing models, and record all outstanding stock
options as liabilities. The liability is marked-to-market in each period and
is amortized to expense using a graded vesting approach over the
period when employee services are rendered, or over the period to the
date an employee is eligible to retire, whichever is shorter. The expense
in each period is affected by the change in the price of our Class B Non-
Voting shares during the life of the option.
Restricted Share Unit (RSU) Plan
We record outstanding RSUs as liabilities, measuring our liabilities and
compensation costs based on the award’s fair value, and recording it as
a charge to operating costs over the vesting period of the award. If the
award’s fair value changes after it has been granted and before the
settlement date, we record the resulting changes in the liability as a
charge to operating costs in the year that the change occurs. The
payment amount is established as of the vesting date.
Deferred Share Unit (DSU) Plan
We record outstanding DSUs as liabilities, measuring our liabilities and
compensation costs based on the awards’ fair values at the grant date.
If an award’s fair value changes after it has been granted and before
the settlement date, we record the resulting changes in our liability as a
charge to operating costs in the year that the change occurs. The
payment amount is established as of the exercise date.
80 ROGERS COMMUNICATIONS INC. 2013 ANNUAL REPORT