text: **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. 
  
  **Financial Instruments**
  The fair values of our Derivatives are recorded using an estimated 
  credit-adjusted mark-to-market valuation. If the Derivatives are in an 
  asset position (i.e., the counterparty owes Rogers), the credit spread for 
  the bank counterparty is added to the risk-free discount rate to 
  determine the estimated credit-adjusted value. If the Derivatives are in a 
  liability position (i.e., Rogers owes the counterparty), our credit spread is 
  added to the risk-free discount rate. The estimated credit-adjusted value 
  of Derivatives is affected by changes in credit spreads between us and 
  our counterparties. 
  
  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. 