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ROGERS COMMUNICATIONS INC. 2007 ANNUAL REPORT 49
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
During 2006, the Board declared dividends aggregating $0.0775
per share on each of the outstanding Class B Non-Voting shares
and Class A Voting shares, $0.0375 of which were paid on July 4,
2006 to shareholders on record on June 14, 2006, and $0.04 of
which were paid on January 2, 2007, to shareholders of record on
December 20, 2006.
In October 2006, our Board declared a 113% increase to the dividend
paid for each of the outstanding Class B Non-Voting shares and
Class A Voting shares. Accordingly, the annual dividend per share
increased from $0.075 per share to $0.16 per share, on a post-split
basis. In addition, the Board modified our dividend distribution
policy to make dividend distributions on a quarterly basis instead
of semi-annually. The first such distribution was made on January 2,
2007, to shareholders of record on December 20, 2006.
In December 2005, the Board declared a 50% increase to the divi-
dend paid for each of the outstanding Class B Non-Voting shares
and Class A Voting shares. Accordingly, the annual dividend per
share increased from $0.05 per share to $0.075 per share, and was
paid twice yearly in the amount of $0.0375 per share to holders of
record of such shares on the record date established by the Board
for each dividend at the time such dividend was declared. These div-
idends were scheduled to be paid on or about the first trading day
following January 1 and July 1
each year. The first such semi-
annual dividend pursuant to the
policy was paid on January 6,
2006, to shareholders of record
on December 28, 2005.
During 2005, the Board declared
dividend s in aggregate of
$0.0625 per share on each of the
outstanding Class B Non-Voting
shares, and Class A Voting shares,
$0.025 of which were paid on
July 2, 2005, to shareholders of
record on June 14, 2005, and
$0.0375 of which were paid on
January 6, 2006, to shareholders
of record on December 28, 2005.
COMMITMENTS AND OTHER CONTRACTUAL OBLIGATIONS
Contractual Obligations
Our material obligations under firm contractual arrangements are
summarized below at December 31, 2007. See also Notes 15, 23 and
24 to the 2007 Audited Consolidated Financial Statements.
Material Obligations Under Firm Contractual Arrangements
Less Than After
(In millions of dollars) 1 Year 1–3 Years 4–5 Years 5 Years Total
Long-term debt – – 2,325 3,690 6,015
Derivative instruments (1) 83 – 692 1,030 1,804
Capital leases and other 1 – – – 1
Operating leases 145 231 143 81 600
Player contracts 82 135 48 33 298
Purchase obligations (2) 729 1,010 58 60 1,857
Other long-term liabilities 5 114 45 50 214
Total 1,044 1,490 3,310 4,944 10,789
(1) Amounts reflect net disbursements only, upon maturity.
(2) Purchase obligations consist of agreements to purchase goods and services that are enforceable and legally binding and that specify all significant terms, including fixed or minimum quantities to be
purchased, price provisions and timing of the transaction. In addition, we incur expenditures for other items that are volume-dependent.
20072006
$0.50$0.16$0.075
ANNUALIZED DIVIDENDS
PER SHARE AT YEAR END
($)
200
6
2007
2005
OFF-BALANCE SHEET ARRANGEMENTS
Guarantees
As a regular part of our business, we enter into agreements that
provide for indemnification and guarantees to counterparties
in transactions involving business sale and business combination
agreements, sales of services and purchases and development of
assets. Due to the nature of these indemnifications, we are unable
to make a reasonable estimate of the maximum potential amount
we could be required to pay counterparties. Historically, we have
not made any significant payment under these indemnifications
or guarantees. Refer to Note 24 to the 2007 Audited Consolidated
Financial Statements.
Derivative Instruments
As previously discussed, we use derivative instruments to manage
our exposure to interest rate and foreign currency risks. We do not
use derivative instruments for speculative purposes.
Operating Leases
We have entered into operating leases for the rental of premises,
distribution facilities, equipment and microwave towers and other
contracts. The effect of terminating any one lease agreement would
not have an adverse effect on us as a whole. Refer to “Contractual
Obligations” above and Note 23 to the 2007 Audited Consolidated
Financial Statements.