Rogers 2005 Annual Report Download - page 90

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86 ROGERS 2005 ANNUAL REPORT . MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
In addition, we entered into certain transactions with companies, the partners or senior officers of which are directors of
RCI or our subsidiary companies as follows:
(In millions of dollars)
Years ended December 31, 2005 2004
Legal services and commissions paid on premiums for insurance coverage $ 5.4 $ 4.0
Telecommunications and programming services 1.6 6.3
Interest charges and other financing fees 21.9 37.8
$ 28.9 $ 48.1
We made payments to or received payments from companies controlled by our controlling shareholder as follows:
(In millions of dollars)
Years ended December 31, 2005 2004
Dividends paid on Class A Preferred shares of Blue Jays Holdco $ – 2.7
Charges to Rogers for business use of aircraft 0.6 0.5
Charges by Rogers for rent and reimbursement of office and personnel costs (0.1) (0.1)
$ 0.5 $ 3.1
During 2005, with the approval of the Board of Directors, we entered into an arrangement to sell to our controlling
shareholder, for $13.0 million in cash, the shares in two wholly owned subsidiaries whose only asset will consist of tax
losses aggregating approximately $100 million. The terms of the transaction were reviewed and approved by a Special
Committee of the Board of Directors comprised of independent Directors. The Special Committee was advised by inde-
pendent counsel and engaged an accounting firm as part of their review to ensure that the sale price was within a range
that would be fair from a financial point of view. The sale of the tax losses will be completed by mid-2006. For account-
ing purposes, we recorded in the Consolidated Balance Sheet at December 31, 2005 a future tax asset of $13.0 million,
representing the amount we will receive from the controlling shareholder for the tax losses when the sale is completed.
In addition, a corresponding $13.0 million was recorded as a reduction of income tax expense in 2005 in the Consolidated
Statement of Income.