Rogers 2004 Annual Report Download - page 20

18 Rogers Communications Inc. 2004 Annual Report
MANAGEMENT’S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
For the year ended December 31, 2004
Management’s discussion and analysis (“MD&A”) should be read in conjunction with our 2004 Audited Consolidated Financial Statements
and Notes thereto. The financial information presented herein has been prepared on the basis of Canadian generally accepted account-
ing principles (“GAAP”) and is expressed in Canadian dollars. Please refer to Note 23 to the 2004 Audited Consolidated Financial
Statements for a summary of differences between Canadian and United States (“U.S.”) GAAP. This discussion, the Audited Consolidated
Financial Statements and the Notes thereto have been reclassified to reflect the retrospective application of Canadian Institute of
Chartered Accountants (“CICA”) Handbook Section 1100, “Generally Accepted Accounting Principles”, Emerging Issues Committee (“EIC”)
Abstract 142, “Revenue Arrangements with Multiple Deliverables”, and EIC Abstract 141, “Revenue Recognition”. The retrospective adop-
tion of these pronouncements resulted in our presentation of a classified balance sheet and the reclassification of the change in non-cash
working capital items related to property, plant and equipment (“PP&E”) expenditures from operating activities to additions to
PP&E under investing activities. For a more complete discussion, see the section entitled “New Accounting Standards – GAAP Hierarchy”.
The retrospective adoption of these pronouncements also resulted in the reclassification of certain revenue and expense items, which
are detailed in the section entitled “New Accounting Standards – Revenue Recognition”. This MD&A is current as of March 7, 2005.
This MD&A is organized into five sections:
In this discussion of operating results and financial position, the terms “we”, “us”, “our”, and “the Company” refer to Rogers
Communications Inc. and our subsidiaries, which are reported in the following four segments:
• “Cable”, which refers to our wholly-owned subsidiary Rogers Cable Inc. and its subsidiaries;
• “Wireless”, which refers to our wholly-owned subsidiary Rogers Wireless Communications Inc. and its subsidiaries including Rogers
Wireless Inc. (“RWI”);
• “Media”, which refers to our wholly-owned subsidiary Rogers Media Inc. and its subsidiaries;
• “Blue Jays”, which refers to our wholly-owned subsidiary Blue Jays Holdco Inc., which owns the Toronto Blue Jays Baseball Club.
“RCI” refers to Rogers Communications Inc. excluding its subsidiaries.
Throughout this discussion, percentage changes are calculated using numbers rounded to the decimal to which they appear.
OVERVIEW
Our Business 19
Our Strategy 19
Significant 20
Fourth Quarter
2004 Events
Seasonality 20
Competition 20
Operating and 20
Financial Results
OPERATING
UNIT REVIEW
Wireless 23
Cable 32
Media 40
Blue Jays 45
FINANCING AND
RISK MANAGEMENT
Consolidated Liquidity 46
and Capital Resources
Interest Rates and 48
Foreign Exchange
Management
Outstanding Share Data 50
Dividends and Other 50
Payments on RCI Equity
Securities
Government Regulation 50
Corporate Risks 51
and Uncertainties
Commitments and Other 53
Contractual Obligations
Off-Balance Sheet 54
Arrangements
ACCOUNTING POLICIES
AND NON-GAAP
MEASURES
Key Performance 54
Indicators and
Non-GAAP Measures
Critical Accounting 56
Policies and Estimates
New Accounting 58
Standards
U.S. GAAP
Differences 59
Intercompany and 61
Related Party
Transactions
ADDITIONAL FINANCIAL
INFORMATION
Five-Year 64
Financial Summary
Summary of 65
Quarterly Results
2004 Quarterly 66
Summary
2003 Quarterly 67
Summary
Supplementary 69
Information:
Non-GAAP Calculations
Supplementary 70
Information:
Pro Forma Information