Rogers 2006 Annual Report Download - page 102

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98 R OG E RS COM MUN I C ATIO NS I NC. 2 0 0 6 AN NUAL R EPO R T
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
16 D ERIVATIVE INSTR UMENTS
Details of the derivative instruments liability is as follows:
U.S. $ Exchange Cdn. $ Carrying Estimated
2006 notional rate notional amount fair value
Cross-currency interest rate exchange agreements accounted for as hedges $ 4,190 1.3313 $ 5,578 $ 710 $ 1,282
Cross-currency interest rate exchange agreements not accounted for as hedges 285 1.1993 342 12 12
4,475 5,920 722 1,294
Transitional gain – – 54 –
4,475 5,920 776 1,294
Less current portion 275 1.1870 326 7 7
$ 4,200 $ 5,594 $ 769 $ 1,287
U.S. $ Exchange Cdn. $ Carrying Estimated
2005 notional rate notional amount fair value
Cross-currency interest rate exchange agreements accounted for as hedges $ 4,190 1.3313 $ 5,578 $ 710 $ 1,308
Cross-currency interest rate exchange agreements not accounted for as hedges 612 1.2021 736 27 27
Interest exchange agreements not accounted for as hedges – – 30 1 1
4,802 6,344 738 1,336
Transitional gain – – 63 –
4,802 6,344 801 1,336
Less current portion 327 1.2045 394 14 14
$ 4,475 $ 5,950 $ 787 $ 1,322
incurred a net cash outlay of $20 million upon settlement of these
cross-currency interest rate exchange agreements. An interest rate
exchange agreement of $30 million notional amount held by Cable
also matured.
During 2005, cross-currency interest exchange agreements of
U.S. $333 million aggregate notional amount matured. Cable
incurred a net cash outlay of $69 million upon settlement of these
cross-currency interest rate exchange agreements.
A transition adjustment arising on the change from marked-to-
market accounting to hedge accounting was calculated as at July 1,
2004, resulting in a deferred transitional gain of $80 million. This
transitional gain is being amortized to income over the shorter of
the remaining life of the debt and the term of the exchange agree-
ments. Amortization of the net transitional gain for the year ended
December 31, 2006 was $9 million (2005 – $11 million).
During 2006, cross-currency interest rate exchange agreements of
U.S. $327 million aggregate notional amount matured. Wireless
17 O THER LONG-T ERM LIABILITIES
2006 2005
Deferred compensation $ 54 $ 25
CRTC commitments 21 26
Program rights 19 18
Other 9 5
$ 103 $ 74