Rogers 2007 Annual Report Download - page 106

Download and view the complete annual report

Please find page 106 of the 2007 Rogers annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 124

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124

102 ROGERS COMMUNICATIONS INC. 2007 ANNUAL REPORT
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
The estimated fair values of the Company’s long-term debt
and related derivative instruments as at December 31, 2007
and 2006 are as follows:
At December 31, 2007, 100% of U.S. dollar-denominated debt
(2006 – 85.6%) was protected from fluctuations in the foreign
exchange between the U.S. and Canadian dollars by derivative
instruments.
Fair value estimates are made at a specific point in time, based
on relevant market information and information about the
financial instruments. These estimates are subjective in nature
and involve uncertainties and matters of significant judgment
and, therefore, cannot be determined with precision. Changes
in assumptions could significantly affect the estimates.
Credit risk of cross-currency interest rate exchange agreements
arises from the possibility that the counterparties to the
agreements may default on their respective obligations under
the agreements in instances where these agreements have
positive fair value for the Company. The Company assesses the
creditworthiness of the counterparties in order to minimize
the risk of counterparty default under the agreements. All of
2007 2006
Carrying Estimated Carrying Estimated
amount fair value amount fair value
Liability:
Long-term debt $ 6,033 $ 6,357 $ 6,988 $ 7,397
Derivative instruments 1,804 1,804 722(1) 1,294
$ 7,837 $ 8,161 $ 7,710 $ 8,691
(1) 2006 balance excludes deferred transitional gain of $54 million.
the portfolio is held by financial institutions with a Standard
& Poors rating (or the equivalent) ranging from A+ to AA.
The Company does not require collateral or other security to
support the credit risk associated with cross-currency interest
rate exchange agreements due to the Company’s assessment
of the creditworthiness of the counterparties. The obligations
under U.S. $4,200 million (2006 – U.S. $4,475 million) aggregate
notional amount of the cross-currency interest rate exchange
agreements are unsecured and generally rank equally with the
Company’s senior indebtedness.
(v) Other long-term liabilities:
The carrying amounts of other long-term liabilities approximate
fair values as the interest rates approximate current rates.
(C) OTHER DISCLOSURES:
The Company does not have any significant concentrations of credit
risk related to any financial asset.
17. OTHER LONG-TERM LIABILITIES:
2007 2006
CRTC commitments (note 13) $ 66 $ 21
Deferred compensation 36 54
Program rights liability 26 19
Share appreciation rights 22 –
Deferred gain on contribution of spectrum licences, net of amortization of $2 million (note 5) 22 –
Restricted share units 16 13
Supplemental executive retirement plan 15 13
Other 11 9
$ 214 $ 129