Finance costs are primarily comprised of interest on borrowings and finance lease obligations, the effective portion of interest rate swaps designated as cash flow hedges, amortization of deferred financing fees, and accretion expense associated with site restoration costs. Interest during construction is capitalized until the plant is substantially completed and ready for productive use.
The Company has interest rate swap contracts on its Egypt limited recourse debt facilities to swap the LIBOR-based interest payments for an average aggregated fixed rate of 4.8% plus a spread on approximately 75% of the Egypt limited recourse debt facilities for the period to March 31, 2015.
7. Net income per common share:
Diluted net income per common share is calculated by considering the potential dilution that would occur if outstanding stock options and, under certain circumstances, tandem share appreciation rights (TSARs) were exercised or converted to common shares.
Outstanding TSARs may be settled in cash or common shares at the holder's option and for purposes of calculating diluted net income per common share, the more dilutive of the cash-settled and equity-settled method is used, regardless of how the plan is accounted for. Accordingly, TSARs that are accounted for using the cash-settled method will require adjustments to the numerator and denominator if the equity-settled method is determined to have a dilutive effect on diluted net income per common share.
Stock options and TSARs, if calculated using the equity-settled method, are considered dilutive when the average market price of the Company's common shares during the period disclosed exceeds the exercise price of the stock option or TSAR. A reconciliation of the number of common shares used for the purposes of calculating basic and diluted net income per common share is as follows:
Three Months Ended ------------------------ Mar 31 Mar 31 2013 2012--------------------------------------------------------------------------------------------------------------------------------------------------------Denominator for basic net income per common share 94,514,188 93,407,866 Effect of dilutive stock options 1,203,681 1,306,498----------------------------------------------------------------------------Denominator for diluted net income per common share 95,717,869 94,714,364----------------------------------------------------------------------------
8. Share-based compensation:
a) Share appreciation rights (SARs), tandem share appreciation rights (TSARs) and stock options:
(i) Outstanding units:
Information regarding units outstanding at March 31, 2013 is as follows:
SARs TSARs ------------------------------------------- Weighted Weighted Average Average Number of Exercise Number of Exercise Units Price Units Price--------------------------------------------------------------------------------------------------------------------------------------------------------Outstanding at January 1, 2012 623,547 $ 26.72 1,219,735 $ 26.65 Granted 353,890 31.64 652,000 31.69 Exercised (55,331) 26.07 (15,800) 25.93 Cancelled (24,581) 29.10 (40,400) 27.61----------------------------------------------------------------------------Outstanding at December 31, 2012 897,525 $ 28.63 1,815,535 $ 28.45---------------------------------------------------------------------------- Granted 360,900 38.24 544,200 38.24 Exercised (67,781) 27.43 (23,400) 27.41 Cancelled (5,500) 30.86 - -----------------------------------------------------------------------------Outstanding at March 31, 2013 1,185,144 $ 31.62 2,336,335 $ 30.74---------------------------------------------------------------------------- Stock Options ----------------------- Weighted Average Number of Exercise Units Price--------------------------------------------------------------------------------------------------------------------------------------------------------Outstanding at January 1, 2012 4,004,204 $ 19.19 Granted 84,000 31.73 Exercised (1,062,215) 18.03 Cancelled (43,042) 18.13----------------------------------------------------------------------------Outstanding at December 31, 2012 2,982,947 $ 19.97---------------------------------------------------------------------------- Granted 75,600 38.24 Exercised (587,689) 22.13 Cancelled (48,128) 16.13----------------------------------------------------------------------------Outstanding at March 31, 2013 2,422,730 $ 20.09---------------------------------------------------------------------------- Units Outstanding at Units Exercisable at March 31, 2013 March 31, 2013 --------------------------------------------------------- Weighted Average Remaining Weighted Weighted Contractual Number of Average Number of AverageRange of Exercise Life Units Exercise Units Exercise Prices (Years) Outstanding Price Exercisable Price--------------------------------------------------------------------------------------------------------------------------------------------------------SARs: $23.36 to 29.18 4.4 503,444 $ 26.80 406,800 $ 26.39 $31.73 to 38.24 6.5 681,700 35.18 97,740 31.73---------------------------------------------------------------------------- 5.6 1,185,144 $ 31.62 504,540 $ 27.42----------------------------------------------------------------------------TSARs: $23.36 to 29.18 4.4 1,156,245 $ 26.66 985,898 $ 26.31 $31.73 to 38.24 6.4 1,180,090 34.73 208,230 31.73---------------------------------------------------------------------------- 5.4 2,336,335 $ 30.74 1,194,128 $ 27.26----------------------------------------------------------------------------Stock options: $6.33 to 11.56 2.9 875,490 $ 6.39 875,490 $ 6.39 $20.76 to 38.24 2.2 1,547,240 27.84 1,394,590 27.11---------------------------------------------------------------------------- 2.5 2,422,730 $ 20.09 2,270,080 $ 19.12----------------------------------------------------------------------------
