Rogers 2007 Annual Report Download - page 114

Download and view the complete annual report

Please find page 114 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

110 ROGERS COMMUNICATIONS INC. 2007 ANNUAL REPORT
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
These transactions are recorded at the exchange amount, being
the amount agreed to by the related parties, and are reviewed by
the Audit Committee.
In 2005, with the approval of a Special Committee of the Board of
Directors and the Board of Directors, the Company entered into an
arrangement to sell to the controlling shareholder of the Company,
for $13 million in cash, the shares in two wholly owned subsidiaries
whose only asset consists of tax losses aggregating approximately
(A) The Company is committed, under the terms of its licences
issued by Industry Canada, to spend 2% of certain wireless revenues
earned in each year on research and development activities.
(B) The Company enters into agreements with suppliers to provide
services and products that include minimum spend commitments.
The Company has agreements with certain telephone companies
that guarantee the long-term supply of network facilities and
agreements relating to the operations and maintenance of the
network.
(C) In the ordinary course of business and in addition to the
amounts recorded on the consolidated balance sheets and disclosed
elsewhere in the notes, the Company has entered into agreements
to acquire broadcasting rights to programs and films over the
next three years at a total cost of approximately $111 million. In
addition, the Company has commitments to pay access fees over
the next year totalling approximately $18 million.
(D) Pursuant to CRTC regulation, the Company is required to make
contributions to the Canadian Television Fund (“CTF”), which is a
cable industry fund designed to foster the production of Canadian
television programming. Contributions to the CTF are based on
a formula, including gross broadcast revenues and the number
of subscribers. The Company may elect to spend a portion of the
above amount for local television programming and may also elect
to contribute a portion to another CRTC-approved independent
production fund. The Company estimates that its total contribution
for 2008 will amount to approximately $42 million.
$10 million. The Special Committee was advised by independent
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. Further to this arrangement, on
April 7, 2006, a company controlled by the controlling shareholder
of the Company purchased the shares in one of these wholly owned
subsidiaries for cash of $7 million. On July 24, 2006, the shares of
the second wholly owned subsidiary were purchased by a company
controlled by the controlling shareholder for cash of $6 million.
(E) In addition to the items listed above, the future minimum
lease payments under operating leases for the rental of premises,
distribution facilities, equipment and microwave towers,
commitments for player contracts, purchase obligations and other
contracts at December 31, 2007, are as follows:
Year ending December 31:
2008 $ 956
2009 695
2010 681
2011 136
2012 113
2013 and thereafter 174
$ 2,755
Rent expense for 2007 amounted to $166 million (2006 – $169 million).
23. COMMITMENTS: