17. Share Capital
Authorized
The company is authorized to issue an unlimited number of common shares without par value and an unlimited number of first preferred shares. The common shares are not redeemable or convertible. The first preferred shares may be issued in one or more series with rights and conditions to be determined by the PCS Board of Directors. No first preferred shares have been issued.
| Issued | 2007 Consideration |
2006 Consideration |
2005 Consideration |
|||
| Issued, beginning of year | $ | 1,431.6 | $ | 1,379.3 | $ | 1,408.4 |
| Shares issued under option plans | 28.6 | 50.9 | 95.7 | |||
| Shares issued for dividend reinvestment plan | 1.1 | 1.4 | 0.3 | |||
| Shares repurchased | - | - | (125.1) | |||
| Issued, end of year | $ | 1,461.3 | $ | 1,431.6 | $ | 1,379.3 |
| 2007 Number of Common Shares |
2006 Number of Common Shares |
2005 Number of Common Shares |
||||
| Issued, beginning of year | 314,403,147 | 310,781,376 | 331,891,509 | |||
| Shares issued under option plans | 1,995,460 | 3,581,424 | 7,378,782 | |||
| Shares issued for dividend reinvestment plan | 12,602 | 40,347 | 11,085 | |||
| Shares repurchased | - | - | (28,500,000) | |||
| Issued, end of year | 316,411,209 | 314,403,147 | 310,781,376 | |||
Stock Split
On May 2, 2007, the Board of Directors of PCS approved a three-for-one split of the company's outstanding common shares. The stock split was effected in the form of a stock dividend of two additional common shares for each share owned by shareholders of record at the close of business on May 22, 2007. All equity-based benefit plans and share data have been retroactively adjusted to reflect the stock split.
Normal Course Issuer Bid
On January 25, 2005, the Board of Directors of PCS authorized a share repurchase program of up to 16,500,000 common shares (approximately 5 percent of the company's issued and outstanding common shares) through a normal course issuer bid. On September 22, 2005, the Board of Directors authorized an increase in the number of common shares sought under the share repurchase program. This amendment allowed the company to repurchase up to 12,000,000 additional common shares. Shares could be repurchased from time to time on the open market through February 14, 2006 at prevailing market prices. The timing and amount of purchases, if any, under the program were dependent upon the availability and alternative uses of capital, market conditions and other factors. The company completed the repurchase program by December 31, 2005. No further program was authorized in 2006 or 2007. On January 23, 2008, the Board of Directors of PCS authorized a share repurchase program of up to 15,820,000 common shares (see Note 34).
During 2005, the company repurchased for cancellation 28,500,000 common shares under the program, at a net cost of $851.9 and an average price per share of $29.89. The repurchase resulted in a reduction of share capital of $125.1, and the excess net cost over the average book value of the shares was recorded as a reduction of contributed surplus of $264.3 and a reduction of retained earnings of $462.5.