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SHAREHOLDERS' EQUITY

6 Months Ended

Jun. 30, 2011

5. SHAREHOLDERS' EQUITY

During the three months ended March 31, 2009, the Company implemented a restricted share unit plan for certain employees. A deferred compensation balance was recorded for the total grant-date value on the date of the grant. The deferred compensation balance was recorded as a reduction of shareholders' equity and is being amortized as compensation expense (or capitalized to construction in progress) over the applicable vesting period.

During the three months ended March 31, 2011, the Company funded the plan by transferring $3.7 million (2010 — $4.0 million) to an employee benefit trust (the "Trust") that then purchased shares of the Company in the open market. The Trust is funded once per year during the first quarter of each year. For accounting purposes, the Trust is treated as a variable interest entity and consolidated in the accounts of the Company. On consolidation, the dividends paid on the shares held by the Trust were eliminated. The shares purchased and held by the Trust are treated as not being outstanding for the basic earnings per share ("EPS") calculations. They are amortized back into basic EPS over the vesting period. All of the shares held by the Trust were included in the diluted EPS calculations.

The following table presents the maximum number of common shares that would be outstanding if all instruments outstanding at June 30, 2011 were exercised:


	Common shares outstanding at June 30, 2011			169,141,820
	Employees' stock options			9,047,351
	Warrants			8,600,000
	Restricted share unit plan			65,941

				186,855,112

During the six months ended June 30, 2011, 2,593,785 (2010 — 2,795,080) options were granted with an exercise price of C$76.46 (2010 — C$57.05), 217,388 (2010 — 285,373) employee stock options were exercised for cash of $8.9 million (2010 — $9.5 million), and 91,750 (2010 — 53,050) options were cancelled with a weighted average exercise price of C$66.87 (2010 — C$55.70).

During the three months ended June 30, 2011, 19,000 (2010 — 40,000) options were granted with an exercise price of C$63.39 (2010 — C$63.70), 53,169 (2010 — 226,048) employee stock options were exercised for cash of $2.1 million (2010 — $8.2 million), and zero (2010 — 42,500) options were cancelled with a weighted average exercise price of nil (2010 — C$57.14).

The following table illustrates the changes in common shares for the six months ended June 30, 2011:



Common shares, beginning of period	168,720,355		3,078,217
Shares issued under Employee Stock Option Plan	217,388		11,168
Shares issued under Incentive Share Purchase Plan	146,546		9,609
Shares issued under Dividend Reinvestment Plan	80,331		4,943
Restricted share unit plan	(22,800	)	(1,796	)

Common shares, end of period	169,141,820		3,102,141

The following table provides the reconciliation for the weighted average number of common shares in the calculation of basic and diluted income per share:

		Three months ended June 30,				Six months ended June 30,

		2011		2010		2011		2010
Net income		$	68,825	$	100,360	$	114,089	$	122,692

Weighted average number of common shares outstanding — basic			169,029,450		156,899,468		168,948,799		156,789,221
	Add: Dilutive impact of employee stock options		1,086,858		1,047,887		1,086,858		1,047,887
	Dilutive impact of warrants		2,265,878		1,915,390		2,530,192		1,690,164
	Dilutive impact of treasury shares related to restricted share unit plan		65,941		57,468		65,941		57,468

Weighted average number of common shares outstanding — diluted			172,448,127		159,920,213		172,631,790		159,584,740

Net income per share — basic		$	0.41	$	0.64	$	0.68	$	0.78

Net income per share — diluted		$	0.40	$	0.63	$	0.66	$	0.77

The calculation of diluted net income per share has been computed using the treasury stock method. A total of 718,696 employee stock options were excluded from the computation of diluted weighted average common shares because their effect would have been anti-dilutive.

For the three and six months ended June 30, 2011 and 2010, the Company's warrants were dilutive and were included in the calculation of diluted net income per share.

- Definition

Disclosures related to accounts comprising shareholders' equity, including other comprehensive income. Includes: (1) balances of common stock, preferred stock, additional paid-in capital, other capital and retained earnings; (2) accumulated balance for each classification of other comprehensive income and total amount of comprehensive income; (3) amount and nature of changes in separate accounts, including the number of shares authorized and outstanding, number of shares issued upon exercise and conversion, and for other comprehensive income, the adjustments for reclassifications to net income; (4) rights and privileges of each class of stock authorized; (5) basis of treasury stock, if other than cost, and amounts paid and accounting treatment for treasury stock purchased significantly in excess of market; (6) dividends paid or payable per share and in the aggregate for each class of stock for each period presented; (7) dividend restrictions and accumulated preferred dividends in arrears (in aggregate and per share amount); (8) retained earnings appropriations or restrictions, such as dividend restrictions; (9) impact of change in accounting principle, initial adoption of new accounting principle and correction of an error in previously issued financial statements; (10) shares held in trust for Employee Stock Ownership Plan (ESOP); (11) deferred compensation related to issuance of capital stock; (12) note received for issuance of stock; (13) unamortized discount on shares; (14) description, terms and number of warrants or rights outstanding; (15) shares under subscription and subscription receivables; effective date of new retained earnings after quasi-reorganization and deficit eliminated by quasi-reorganization and, for a period of at least ten years after the effective date, the point in time from which the new retained dates; and (16) retroactive effective of subsequent change in capital structure.

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